International Maritime Organization Deems Cape of Good Hope Navigation Route ‘Unsustainable’

A naval forces boat secures one of the areas of the Suez Canal near the Egyptian city of Ismailia. (AP)
A naval forces boat secures one of the areas of the Suez Canal near the Egyptian city of Ismailia. (AP)
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International Maritime Organization Deems Cape of Good Hope Navigation Route ‘Unsustainable’

A naval forces boat secures one of the areas of the Suez Canal near the Egyptian city of Ismailia. (AP)
A naval forces boat secures one of the areas of the Suez Canal near the Egyptian city of Ismailia. (AP)

Secretary-General of the International Maritime Organization Arsenio Dominguez has stressed that the IMO supports freedom of navigation and calls for calm in the Red Sea region.

During his meeting with Chairman of the Suez Canal Authority (SCA) Admiral Ossama Rabie on Thursday, the IMO secretary-general explained that the current situation in the Red Sea region imposes many challenges on the global trade movement, the maritime transport market, the Suez Canal, and the ports in the region.

He affirmed that navigation in the canal is still open to everyone “especially in light of the logistical and security challenges faced by the vessels that go around the Cape of Good Hope,” noting that the “Cape route is deemed unsustainable for navigation traffic as it lacks essential services.”

For his part, Rabie stated that the Suez Canal achieves savings in time and distance compared to alternative routes, and this contributes to reducing fuel consumption by rates ranging from 10 to 90 percent, consequently reducing harmful carbon emissions.

He noted that the Suez Canal reduced carbon emissions by 55.4 million tons in 2023 by saving 16.9 million in fuel consumption.

The SCA Chairman also stressed that navigation in the canal is regular and “has not stopped for a single day” since the outbreak of the crisis, as part of the SCA’s continued efforts to support its clients to mitigate the impact of the current situation.

Additionally, Rabie reviewed the package of navigational and maritime services provided by SCA, which includes, in addition to pilotage services, Bunkering services, ship repair and maintenance services at SCA shipyards, marine ambulance services, marine salvage services, pollution control and other services that the Canal-transiting vessels may need in normal and emergency circumstances.

Yemen’s Houthi movement has been targeting Israel-linked vessels in the Bab Al-Mandab Strait in the Red Sea as an expression of solidarity with the Gaza Strip, which has been under an Israeli attack since October 7.

In response, the US and the UK have hit several Houthi sites to disrupt and degrade the capabilities that the Houthis use to threaten global trade.

Australian mining giant BHP said on Thursday that the Red Sea disruptions are forcing some of its freight service providers to take alternative routes, such as SA's Cape of Good Hope, while others still prefer the Red Sea with additional controls.

“The Red Sea is one of the key shipping routes in the world. However, the majority of BHP’s shipments do not go through this route,” and there have been no major business disruptions so far, the world’s largest listed miner said in a statement.

BHP Group is diverting almost all of its shipments from Asia to Europe away from the Red Sea, the Wall Street Journal reported on Thursday.

It generated $1.96 billion in revenue from Europe in 2023, about 3.6 percent of its total revenue of $53.82 billion.

The move follows reports from companies such as Kuwaiti oil majors BP and Shell that have paused transits through the Red Sea as strikes on commercial vessels by the Iran-aligned Houthis have stymied trade between Europe and Asia.

Some shipping companies have instructed vessels to reroute via a slower and more expensive Cape of Good Hope.

Kuwait Oil Tanker Company (KOTC) said on Thursday it is monitoring and assessing the situation in the Bab Al-Mandeb Strait and Red Sea.

It underlined in a press statement to KUNA that it is following globally applied precautionary measures for the protection and safety of its fleet.

It reiterated that it backs Kuwaiti oil shipments to global markets.

The Kuwaiti newspaper Al-Rai, citing informed sources, said the company has decided to temporarily suspend the passage of its tankers in the Red Sea due to the evolving events in the region.

The newspaper reported that the decision for the temporary suspension is subject to continuous periodic review until the region stabilizes, confirming "the Kuwait Petroleum Corporation's full commitment to implementing its contracts with various countries, using foreign tankers."

Qatar Energy announced on Wednesday that the attacks in the Red Sea “may affect” the scheduling of liquefied natural gas (LNG) shipments, in contrast to production, which it assured was “continuing without interruption.”

In a statement, the company said: “While the ongoing developments in the Red Sea area may impact the scheduling of some deliveries as they take alternative routes, LNG shipments from Qatar are being managed with our valued buyers.”



FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
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FII Institute Names Princess Maha bint Mishari Al Saud as CEO

Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)
Princess Maha bint Mishari bin Abdulaziz Al Saud (Asharq Al-Awsat file photo)

The FII institute, run by a global nonprofit foundation of ⁠Saudi sovereign wealth ⁠fund PIF, has named ⁠Princess Maha bint Mishari bin Abdulaziz Al Saud as its CEO, according to ⁠the ⁠institute's website.

“With more than 25 years of leadership experience spanning healthcare, academia, strategic partnerships, and international engagement, Dr. Al Saud has built a distinguished career centered on creating impact through collaboration and institution-building. She has worked across the public, private, and nonprofit sectors to advance initiatives that strengthen organizations, expand opportunity, and improve lives,” the website said.

Before joining FII Institute, she served as Vice President of External Relations and Advancement at Alfaisal University.

She has helped expand strategic partnerships, deepen international engagement, and elevate the university’s global standing in education, research, and innovation.

“A recognized advocate for leadership, healthcare transformation, education, and human development, Dr. Al Saud has represented Saudi Arabia at major international forums, including the G20, and the fourth Eurasian Women’s Forum,” FII Institute said.

“Dr. Al Saud holds an MBBS degree and is certified by the American Board of Internal Medicine, having completed her residency training at George Washington University. Her executive credentials include the Senior Executive Leadership Program at Harvard Business School, IMD Business School and she holds the prestigious, peer-reviewed distinction of Master of the American College of Physicians (MACP),” it added.


Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
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Egypt Clears Arrears to Oil and Gas Companies

People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)
People walk past a shop selling football jerseys in Khan el-Khalily Bazar in Cairo on June 9, 2026. (AFP)

Egypt's Minister of Petroleum Karim Badawi said on Wednesday that the full settlement of arrears owed to oil and gas partners marked a turning point for the sector.

Badawi ‌said payment ‌of the arrears, "restores ‌investor confidence ⁠and paves the ⁠way for increased upstream activity and accelerated project development".

Egypt had accumulated about $6.1 billion in arrears to foreign oil companies by June ⁠30, 2024 due to ‌a ‌prolonged foreign currency shortage that delayed payments ‌and weighed on investment and ‌gas output. The shortage has since eased, though some companies have said that arrears kept ‌accumulating.

The minister said clearing the debt removed ⁠a ⁠key obstacle to new investment inflows and would support increased exploration, drilling and field development activity, including projects in the Mediterranean where development typically requires significant capital spending and years of work before production begins.


Saudi Economy Demonstrates Competitive Strength, Expands 3% in First Quarter

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)
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Saudi Economy Demonstrates Competitive Strength, Expands 3% in First Quarter

A view of the Saudi capital, Riyadh. (SPA)
A view of the Saudi capital, Riyadh. (SPA)

Saudi Arabia’s economy has once again demonstrated the strength of its fundamentals and its ability to withstand regional shocks, posting real GDP growth of 3 percent year-on-year in the first quarter of 2026, despite escalating tensions across the Middle East that have disrupted supply chains and global trade flows.

The final official figures surpassed the earlier flash estimate of 2.8 percent. The upward revision reflected higher estimates from the General Authority for Statistics (GASTAT), which raised growth projections for both oil and non-oil activities to 2.9 percent. The Kingdom had recorded growth of 5.2 percent in the fourth quarter of 2025.

Saudi Arabia’s performance amid logistical challenges, including shipping disruptions through the Strait of Hormuz, recently received backing from an International Monetary Fund mission.

Following consultations in Riyadh, IMF experts said the Kingdom had successfully mitigated the effects of regional conflict and eased logistical bottlenecks through resilient infrastructure, the rapid deployment of the East-West pipeline and Red Sea ports, and strong financial buffers provided by the Public Investment Fund and a stable banking sector.

The IMF nevertheless revised its 2026 growth forecast for Saudi Arabia to 2 percent from a previous estimate of 3.1 percent, citing regional instability.

Broad-based expansion

According to GASTAT, first-quarter growth was driven by gains across all major sectors of the economy. Oil and non-oil activities each expanded 2.9 percent year-on-year, while government activities rose 1.5 percent.

On a seasonally adjusted basis, real GDP declined 1.2 percent from the fourth quarter of 2025, reflecting a 6.8 percent contraction in oil activities. Government and non-oil sectors, however, continued to post quarterly growth of 1.4 percent and 0.3 percent, respectively.

Financial services, insurance and business services recorded the strongest performance among detailed sectors, growing 5.4 percent year-on-year and 1.1 percent quarter-on-quarter.

Manufacturing activities, excluding oil refining, expanded 4 percent annually. Crude oil and natural gas activities grew 3.6 percent from a year earlier, despite a 7 percent quarterly decline linked to shipping disruptions.

Consumption and investment remain strong

Government final consumption expenditure rose 11.3 percent year-on-year and 8.5 percent quarter-on-quarter, while private consumption increased 5.3 percent annually.

Gross fixed capital formation climbed 3.9 percent year-on-year and 7.5 percent quarter-on-quarter, underscoring continued investment momentum. Exports increased 1.4 percent from a year earlier, while imports fell 5.5 percent.

Non-oil activities remained the primary driver of economic growth, contributing 1.7 percentage points to overall GDP expansion. Oil activities added 0.8 percentage points, while government activities and net taxes contributed 0.3 and 0.2 percentage points, respectively.

The IMF also praised the Saudi Central Bank (SAMA) for maintaining a countercyclical capital buffer of 100 basis points, noting that the Saudi riyal’s peg to the US dollar continues to bolster monetary-policy credibility and financial stability.

On structural reforms, the fund welcomed the recalibration of the Public Investment Fund’s 2026-2030 strategy, aimed at allocating capital more selectively and encouraging greater private sector participation.

It said continued progress toward the objectives of Vision 2030, including deeper capital markets, stronger alignment between education and labor market needs, and broader adoption of artificial intelligence and logistics technologies, remains essential to achieving sustainable economic diversification and safeguarding prosperity for future generations.