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Climate Week in Riyadh Introduces Solutions, Ideas for COP28

Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
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Climate Week in Riyadh Introduces Solutions, Ideas for COP28

Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)
Prince Abdulaziz bin Salman addresses the opening of Climate Week in Riyadh. (Asharq Al-Awsat)

The Middle East and North Africa Climate Week 2023 concluded on Thursday in Riyadh, with successful discussions and ideas that pave the way for solutions for the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28), which will be held late next month in Dubai.

The international event witnessed the largest attendance ever at the regional climate weeks held by the United Nations globally, with the participation of more than 9,000 people of 137 different nationalities, who were present at more than 240 dialogue sessions.

With the conclusion of the conference, Saudi Arabia affirmed its readiness to maintain the momentum and promote comprehensive climate action.

Saudi Minister of Energy Prince Abdulaziz bin Salman inaugurated the event on Sunday, presenting an overview of the progress achieved in the region and in Saudi Arabia in particular.

The Climate Week saw the announcement of comprehensive programs and offered a platform for sharing ideas and solutions related to climate action. In this context, three important initiatives were announced, all of which seek to advance global climate goals.

Those include a market mechanism to compensate and balance greenhouse gases (carbon equivalents) in the Kingdom, a roadmap for the Saudi Green Initiative goal of planting 10 billion trees, in addition to an initiative entitled, “Empowering Africa”, based on the Clean Cooking Solutions Initiative.

Six memorandums of understanding were concluded during the event, including an agreement between Saudi Arabia and India in the field of electrical connectivity, clean green hydrogen and supply chains, and a memorandum between the Ministerial Forum for Clean Energy and the King Abdullah Center for Petroleum Studies and Research (KAPSARC) to promote sustainable energy development at the regional and global levels.

KAPSARC held a high-level workshop in partnership with the World Energy Forum, which addressed the contribution of clean hydrogen and carbon capture, use and storage projects in achieving climate goals in the Middle East and North Africa region, with the participation of an elite group of experts in energy, climate and sustainability, and officials in the government and private sectors.

The discussions touched on hydrogen strategies in the region and their promising role in project development, and highlighted the importance of technology and supply chains in providing low-carbon energy solutions.

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Business

IMF: Wars Impose Deep and Prolonged Economic Costs on Countries

The letters IMF (for International Monetary Fund) stand next to a stage for events in the conference building of the International Monetary Fund (IMF). Soeren Stache/dpa 
The letters IMF (for International Monetary Fund) stand next to a stage for events in the conference building of the International Monetary Fund (IMF). Soeren Stache/dpa 
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IMF: Wars Impose Deep and Prolonged Economic Costs on Countries

The letters IMF (for International Monetary Fund) stand next to a stage for events in the conference building of the International Monetary Fund (IMF). Soeren Stache/dpa 
The letters IMF (for International Monetary Fund) stand next to a stage for events in the conference building of the International Monetary Fund (IMF). Soeren Stache/dpa 

Wars cause large and persistent economic losses in countries where fighting takes place, with output declining by roughly 7% over five years on average, and economic scars lasting for more than a decade, the International Monetary Fund (IMF) said in research released on Wednesday.

The IMF examined ‌the cost of active conflicts - now at the highest levels since the end of World War Two - and the macroeconomic consequences of sharp increases in military spending in two chapters of its forthcoming World Economic Outlook. The full report will be released next Tuesday.

The chapters do not address the Middle East war or the two-week ceasefire announced by US President Donald Trump late on Tuesday but offer a comprehensive look at wartime economies back to 1946, and weapons spending data from 164 countries.

In 2024, the latest year for which data is available, more than 35 countries experienced conflict in their territory and about 45% of the world's population lived in countries affected by ⁠conflict.

“Beyond their devastating human toll, wars impose large and lasting economic costs, and pose difficult macroeconomic trade-offs, especially for those countries where the fighting is taking place,” the IMF said in a blog released at the same time.

Countries engaged in foreign conflicts can avert physical destruction on their own soil and avoid large economic losses, but neighboring countries or key trading partners will feel the shock, the IMF said.

“Output losses from conflicts persist even after a decade and typically exceed those associated with financial crises or severe natural disasters,” the IMF chapter said.

It said conflicts contributed to sustained exchange rate depreciation, reserve losses and rising inflation, as widening external imbalances amplified macroeconomic stress, according to Reuters.

Military Spending Surges Globally

Rising geopolitical tensions and more frequent conflicts have sparked big jumps in military ‌spending, with ⁠about half of the world's countries increasing their military budgets over the past five years, and more increases coming as NATO countries boost weapons spending to 5% of GDP by 2035.

Arms sales by the world's largest weapons makers - many of whom are based in the US - have doubled in real terms over two decades, the IMF found.

The IMF authors found that large defense spending booms had become more frequent, especially in emerging-market and developing economies, with typical booms lasting 2-1/2 years and military spending surging by about 2.7% of GDP.

About two-thirds of these military buildups were financed by higher deficits, ⁠which could boost economic activity in the medium term, but also increased inflation and created medium-term challenges, the IMF said. That meant buildups needed to be closely coordinated with monetary policy, the IMF said.

Military Buildups Strain Budgets

On average, fiscal deficits worsened by about 2.6 percentage points of GDP and public debt increased by about 7 percentage points within three years of the start of a buildup.

About one-quarter ⁠of those buildups were financed by reprioritizing spending, often leading to a sharp decline in government spending on social programs, said Andresa Lagerborg, an IMF economist, in a taped discussion about the chapter.

Output gains were also smaller when the arms were purchased from foreign suppliers, the IMF said. Focusing on public investment in equipment and infrastructure would expand market size, ⁠support economies of scale and strengthen industrial capacity while limiting the loss of orders to overseas suppliers, it said.

IMF economist Hippolyte Balima, one of the key authors of the chapters, said the data also showed that peace was fragile, with about 40% of countries relapsing into conflict within five years.

Business

Global Supply Chains Reshape, Focus Shifts to Saudi Arabia

A container ship at a Saudi port (SPA)
A container ship at a Saudi port (SPA)
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Global Supply Chains Reshape, Focus Shifts to Saudi Arabia

A container ship at a Saudi port (SPA)
A container ship at a Saudi port (SPA)

At a time when global supply chains are being reshaped by rising geopolitical tensions and disruptions to key routes, led by the Strait of Hormuz crisis, Saudi Arabia has emerged as a central player in redirecting trade flows.

Leveraging a unique position linking East and West, and advanced logistics infrastructure reinforced by Vision 2030, the kingdom is positioning itself as a leading destination for global investment in the sector.

What began as a crisis response is now a strategic opening, drawing major logistics firms seeking safer, more reliable hubs.

Specialists say that as reliance on Saudi Red Sea ports grows and alternative routes expand, the kingdom is consolidating its role as a core node in global supply chains and a launchpad for cross-border logistics investment.

Global logistics hub

Nashmi al-Harbi, a logistics consultant, told Asharq Al-Awsat that major crises redraw investment maps, and the Strait of Hormuz is no exception.

“Commercial vessels are increasingly turning to Saudi Red Sea ports as a practical, secure alternative, reflecting the resilience of the kingdom’s infrastructure,” he said.

The shift sends a clear signal that Saudi Arabia is not just a consumer market, but a global logistics hub, in line with Vision 2030, he added.

Al-Harbi said the kingdom has become a lifeline for neighboring states, activating Gulf logistics integration and introducing exceptional measures, including customs facilitation and fee exemptions for goods transiting to Gulf markets.

“Global companies look for predictability and trust, and what the kingdom delivered during this crisis proves it offers both,” he said.

He added that Saudi Arabia’s dual access to the Arabian Gulf and the Red Sea has given it a decisive edge over regional peers.

Pipeline

Exports from Yanbu on the Red Sea have climbed to 3.8 million barrels per day, supported by the East-West pipeline, which has a capacity of about 7 million barrels per day, al-Harbi said.

Built in the 1980s for this purpose, the pipeline is now seen by specialists as a highly strategic asset.

On regional coordination, he said Saudi Arabia has signed rapid logistics linkage agreements with Sharjah Port and ports in Oman and Kuwait, redirecting cargo from the Arabian Sea to Red Sea ports and then overland.

“This operational flexibility sets the kingdom apart,” he said.

Al-Harbi expects supply chains to be restructured, describing the crisis as a turning point in Gulf logistics integration and the start of more flexible, adaptive routes.

Crises drive innovation, he said, predicting wider adoption of smart tracking systems and risk management tools across Saudi supply chains.

He added that Gulf states now recognize the scale of the disruption requires new thinking, and that a return to pre-crisis conditions is unlikely.

Saudi Arabia had already been building its logistics infrastructure under Vision 2030, he said, adding that the current crisis has validated and accelerated that strategy, setting the sector on course for unprecedented growth and global positioning.

Operational capacity

Zaid al-Jarba, an expert in digital transformation and logistics, said Saudi Arabia has stood out not only for its location but also for turning geography into operational strength and for growing its logistics influence.

While many viewed Hormuz disruptions as a risk, Riyadh was steadily building alternatives, he said, developing new routes, more prepared ports, expanded airports, and stronger connectivity to ease bottlenecks.

“The advantage is not just access to the Arabian Gulf and the Red Sea, but the ability to connect them. That is a rare strategic strength,” he said.

Goods entering through Red Sea ports can move across the kingdom to Gulf markets, and vice versa, positioning Saudi Arabia as a bridge across the logistics network, he added.

He said logistics crises extend beyond maritime routes, with air freight and multimodal links gaining importance as risks rise.

Saudi airports, with growing cargo capacity and expanding infrastructure, have contributed to that flexibility, he said.

Aviation market

Al-Jarba said several Gulf airlines have turned to Saudi airports, underscoring a shift; Riyadh is no longer just a large aviation market, but an operational platform supporting regional traffic when alternatives are needed.

He said the kingdom’s role during the crisis, combined with its competitive edge, has drawn the attention of global logistics firms.

That edge includes its geographic position linking continents, its dual coastlines on the Arabian Gulf and the Red Sea, and its advanced infrastructure spanning ports, transport networks, and pipelines.

Flexible government policies, including customs facilitation and faster procedures, have further strengthened its appeal, he said, adding that a clear strategy under Vision 2030 makes Saudi Arabia a reliable, scalable base for supply chain operations.

Business

Hapag-Lloyd: Resuming Normal Shipping to Take 6-8 Weeks if Mideast Stabilizes

This aerial picture shows stacks of shipping containers at Tanjung Priok Port, Jakarta, March 31, 2026. (Photo by BAY ISMOYO / AFP)
This aerial picture shows stacks of shipping containers at Tanjung Priok Port, Jakarta, March 31, 2026. (Photo by BAY ISMOYO / AFP)
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Hapag-Lloyd: Resuming Normal Shipping to Take 6-8 Weeks if Mideast Stabilizes

This aerial picture shows stacks of shipping containers at Tanjung Priok Port, Jakarta, March 31, 2026. (Photo by BAY ISMOYO / AFP)
This aerial picture shows stacks of shipping containers at Tanjung Priok Port, Jakarta, March 31, 2026. (Photo by BAY ISMOYO / AFP)

Hapag-Lloyd voiced cautious optimism on Wednesday on the prospect of resuming shipping through the Strait of Hormuz after a two-week ceasefire agreed between the US and Iran, but said that resuming normal traffic throughout its network would take at least 6-8 weeks.

Speaking in a call to customers, CEO Rolf Habben Jansen echoed guarded remarks ⁠by peer container ⁠shipping group Maersk, saying that more security assurances were needed.

“Even if a ceasefire has now been agreed overnight, I would say that it's fair to ⁠say that the conflict in the Middle East is still severely disrupting shipping, but also supply chains," the Hapag CEO said, adding that the situation was "fluid".

According to Reuters, he estimated additional costs from the Middle East crisis at $50 million to $60 million a week and warned that the German company ⁠would ⁠have to pass on some of that to its customers. That was up from $40-$50 million stated previously.

He added that about 1,000 ships were still stuck in the region, six of which from his company with a combined capacity of about 25,000 standard containers.