OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
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OAPEC Secretary General: World Economy Will Fall in Deep Slump without Oil, Gas

Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)
Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC) Jamal Issa Al-Loughani. (OAPEC)

Jamal Issa Al-Loughani, Secretary General of the Organization of Arab Petroleum Exporting Countries (OAPEC), predicted that the world would become primitive if oil-producing countries listened to climate activist demands and stopped producing gas and oil.

He said the world will witness major power outages, companies would be forced to close and global trade would come to a halt.

Without fuel, supply chains that primarily rely on trucks, railways and marine shipping will come to a stop, he told Asharq Al-Awsat.

Moreover, this will lead to the collapse of the global health system that relies on oil and gas in operating hospitals and transporting patients. The collapse will extend to the production of medicine, equipment and medical supplies, he added.

Ultimately, the world will fall into a deep global slump, he warned.

He remarked however, that given this bleak outlook, the scenario is highly unlikely to unfold.

“We must stress that there can be no imagining a global economy that is not driven by the main engine that is the oil and gas industry,” he declared.

Oil and gas are the main factors on which economic relations between nations are based, providing millions of jobs across the globe, Al-Loughani said.

He noted, however, the growing number of challenges in developing the oil industry and coordinating energy policies between OAPEC member states. He cited unified efforts to secure the delivery of oil to markets through fair and reasonable conditions and providing the suitable conditions for capital and investors in the petrol industry among members.

This is one of the main goals of OAPEC, he remarked. One of the hurdles facing it, he continued, are misleading calls for reducing investments in oil and gas related to the environment and climate change.

He said there is a great insistence on tying an emissions-free environment to reducing the consumption of oil and gas. These calls omit the fact that producing oil and gas and controlling emissions through clean technologies help reach the goal of net-zero emissions by 2050.

OAPEC has indeed started to implement this in recent years as part of the aim to bolster sustainable energy systems and contribute to the global climate change efforts, Al-Loughani added.

OAPEC was founded by Saudi Arabia, Libya and Kuwait in Beirut in 1968. It is based in Kuwait and its founding was viewed as an Arab accomplishment amid trying conditions that followed the 1967 war.

Energy and emissions

Al-Loughani stressed that the oil and gas industry played a major role in the growth of the global economy in recent decades.

In spite of the pressure it is coming under by some countries that had initially backed it, the industry will certainly continue to play its role in the future, he stated.

He emphasized that OAPEC has started to meet global trends related to reducing carbon emissions.

He noted the constant investment, innovation and development of clean technologies, such as carbon capture and storage.

Al-Loughani remarked however, that demand on oil and gas will continue to remain great in the global energy mix despite the rise in the share of renewable energy, especially solar and wind power.

Oil markets

On the drop in investments in the oil sector after some countries shifted to clean energy, Al-Loughani acknowledged the decline, especially in production and exploration, which will lead to a slowdown in the growth of global reserves.

This in turn may impact overall supplies to meet growing demand and consequently lead to rises in energy prices, he predicted.

He revealed that oil exploration and production investments reached around 397.6 billion dollars in 2023, meaning there is a gap estimated at over 17 percent in investments needed to meet global oil demand until 2045, which is estimated at 480 billion dollars annually, according to OPEC.

So, there is a need to bolster investments in the oil industry overall to avoid jeopardizing global energy security and increase inflation, which will in turn slow down the shift towards a clean sustainable energy system, he urged.

Arab reserves

On the role of Arab countries, specifically Saudi Arabia, in securing oil supplies to the global energy market, he said they are playing a main role to that end given their massive reserves and share of global production.

He stressed that Saudi Arabia constantly strives to ensure the security of oil supplies and provide trusted sources of energy, especially when it comes to economic development, while confronting the challenges of climate change.

This has been demonstrated in Saudi Arabia’s pioneering efforts in founding OPEC+ and ensuring its success. He also cited the precautionary measures taken by the group to support the stability and balance of the global oil market through additional voluntary reductions on production.

Such measures are necessary to achieve sustainable growth in the global economy, he added.

He also noted Saudi Arabia’s cooperation with its partners in the G20 with the aim of achieving common interests and maintaining fair costs for all effective parties in the energy market, from producers, investors and consumers. These efforts were highlighted during the COVID-19 pandemic.



Regional Turmoil Drives Growth at Egyptian Ports While Cutting Suez Canal Revenues

Egypt has an extensive network of seaports along both the Red Sea and the Mediterranean. (Egyptian Ministry of Transport)
Egypt has an extensive network of seaports along both the Red Sea and the Mediterranean. (Egyptian Ministry of Transport)
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Regional Turmoil Drives Growth at Egyptian Ports While Cutting Suez Canal Revenues

Egypt has an extensive network of seaports along both the Red Sea and the Mediterranean. (Egyptian Ministry of Transport)
Egypt has an extensive network of seaports along both the Red Sea and the Mediterranean. (Egyptian Ministry of Transport)

The Suez Canal may have incurred heavy losses due to regional tensions and instability in recent years — from the war in Gaza to the conflict involving Iran — those same disruptions have contributed to a significant surge in activity at Egyptian ports and in transit trade.

However, Egyptian economists said the strong increase in container traffic at the country’s ports is not enough to compensate for the canal’s losses.

They stressed that government initiatives, including efforts to expand transit trade, may only help reduce part of the revenue shortfall.

At the end of April, Egyptian President Abdel Fattah al-Sisi said Egypt had lost nearly $10 billion in Suez Canal revenues because of attacks on ships in the Bab el-Mandeb Strait.

Egyptian ports have experienced increased activity in recent months amid supply-chain disruptions linked to the Iran conflict. Maritime connections with regional countries have expanded, including the launch of the NEOM–Safaga multimodal logistics corridor linking Gulf Cooperation Council countries with Europe.

The Egyptian government has also reinforced trade links between the Gulf and Europe through the “Ro-Ro” shipping line connecting Damietta Port with Italy’s Port of Trieste to increase trade volumes.

In the energy sector, oil flows through Egypt’s SUMED pipeline rose following disruptions in global energy supply chains caused by the closure of the Strait of Hormuz.

Amr El-Samadouni, secretary-general of the International Transport and Logistics Division at the Cairo Chamber of Commerce, said the recent tensions in the Strait of Hormuz have “strengthened Egypt’s position as a regional hub for logistics services and supply-chain management.”

In a statement, El-Samadouni said the developments provide Egypt with “an important opportunity to offset part of the decline in Suez Canal revenues by attracting a share of urgent shipments that cannot tolerate long delays, especially in sectors linked to fast-moving trade and time-sensitive supply chains.”

According to a statement by Egypt’s Ministry of Transport on Thursday, the country’s port sector recorded a major increase in cargo and container handling. Egyptian ports handled 11.1 million twenty-foot equivalent units (TEUs) in 2025, compared with 8.9 million in 2024, representing growth of 24.3 percent.

Transit container traffic also increased sharply, reaching 6.7 million containers in 2025, a rise of 36 percent. The number of ships calling at Egyptian ports climbed to 17,288 voyages in 2025, up 6.6 percent, according to the ministry.

Egypt has an extensive network of seaports along both the Red Sea and the Mediterranean and is investing heavily in upgrades to strengthen its role in regional and international trade.

The Ministry of Transport said the modernization program aims to transform Egypt into a regional hub for transport, logistics, and transit trade while boosting the ports’ ability to attract investment and handle growing trade volumes.

Despite the improvements in port activity, “they cannot compensate for the losses of the Suez Canal,” said Walid Gaballah, a member of the Egyptian Association for Political Economy, Statistics and Legislation.

He noted that revenues from trade and container handling “may reduce the losses but cannot fully replace them,” adding that shipping traffic through the canal has yet to return to pre-Gaza war levels.

Gaballah told Asharq Al-Awsat that continued regional instability makes recovery in Suez Canal traffic increasingly difficult.

Egyptian economist Mostafa Badra also said there can be no direct comparison between canal revenues and port trade income. “There is no substitute for the canal as a major source of foreign currency,” he told Asharq Al-Awsat, noting that revenues generated by port trade remain far below the canal’s earnings under normal conditions.

Badra added that the government’s port-development strategy is intended to strengthen Egypt’s logistics capabilities and reinforce the Suez Canal’s role as a global trade corridor while primarily supporting domestic trade. By contrast, he said, the canal itself remains a vital artery in global supply chains.

Egypt recently rose three places in the UNCTAD Liner Shipping Connectivity Index, ranking 19th globally, first in Africa, and second in the Arab world, according to the Ministry of Transport.


US, Mexico Finish First Round of Trade Agreement Talks

Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)
Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)
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US, Mexico Finish First Round of Trade Agreement Talks

Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)
Mexican Economy Minister, Marcelo Ebrard, gestures as he speaks during a press conference in Mexico City on May 27, 2026. (AFP)

The United States and Mexico completed a first round of bilateral trade talks Friday, focused on revising the North American Free Trade Agreement in light of pressure from President Donald Trump's tariff policies.

The US-Mexico-Canada Agreement (USMCA) is due for its first review since coming into force in 2020, with talks starting Wednesday led by Mexico's Economy Secretary Marcelo Ebrard and US Deputy Trade Representative Jeff Goettman joining Thursday.

"We talked about rules of origination, the automotive sector, how we compete with countries in Asia and other parts of the world, and how we can integrate more," Ebrard said in a statement.

The Mexican delegation in a statement described the talks as being held "in a constructive environment and with frank dialogue" that ended with a "net positive."

The US Trade Representative Office said in a statement the US approached the talks with the goals of reducing Washington's trade deficit with Mexico and strengthening US supply chains.

"During this first round, negotiators discussed priority issues related to automotive rules of origin, steel and aluminum, and economic security," the statement said.

"The United States and Mexico recognize the importance of advancing cooperation to enhance regulatory compatibility to strengthen sectors, including medical devices, pharmaceuticals, cosmetic products, and others."

Trump has threatened to pull out from the USMCA, arguing it doesn't benefit the US economy, casting a shadow over the talks.

The USMCA is critical for Mexico, as the United States accounts for more than 80 percent of its exports.

With the first round complete, future rounds of negotiations will take place in Washington in June, then Mexico City in July.


EU's Six Biggest Economies Agree on Capital Markets Supervision

German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)
German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)
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EU's Six Biggest Economies Agree on Capital Markets Supervision

German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)
German Finance Minister Lars Klingbeil (L), Dutch Finance Minister Eelco Heinen (R) and Spanish Economy Minister Carlos Cuerpo attend a meeting with finance ministers from Germany, Italy, Spain, Poland, France and the Netherlands at the Deutsche Bundesbank recreation center in Berlin, Germany, 28 May 2026. (EPA)

Finance ministers from the EU's six biggest economies (E6) agreed among themselves on Friday to support more centralized capital markets supervision, in a breakthrough crucial for deeper integration of Europe's fragmented capital markets.

The push for financial market players to be supervised at a European Union rather than national level is part of the EU's plan to redirect trillions of its citizens' savings, now idling in bank deposits, into more productive investment in Europe.

Access to such a large ‌amount of capital ‌for investment would boost the bloc's chances of competing against ‌the ⁠United States and China.

Supervision ⁠of significant market infrastructure would be gradually transferred to the European Securities and Markets Authority in Paris, the finance ministers of Germany, France, Italy, Poland, Spain and the Netherlands agreed after they met in Berlin on Thursday to discuss the issue.

The issue of handing over local powers to supervise trading platforms, central counterparties and central securities depositories to the EU has been difficult because of vested national interests and opposition from Ireland and Luxembourg and ⁠initially Germany.

But the issue will be decided by qualified ‌majority, meaning it needs the support of 15 ‌out of the EU's 27 countries representing 65% of the bloc's population.

With the backing of the ‌E6, which represent 70% of the EU's population, centralized supervision is now much ‌more likely to happen.

"The fact that the EU's six largest economies are prepared to leave national self-interest behind and move forward together is an important signal for the entire European Union," German Finance Minister Lars Klingbeil said in a statement.

ACCOUNTABILITY MUST BE ENFORCED

The European Commission presented its ‌plan to better integrate EU capital markets in December, and Germany's finance minister has said he expects the package to ⁠be adopted by ⁠the end of this year.

"In an uncertain international context, Europe needs deeper and more integrated capital markets," Spanish Finance Minister Carlos Cuerpo said. "This joint positioning is a decisive step towards a true savings and investment union."

ESMA's governance structure must be set up efficiently: expertise, supervisory and market experience, and geographical balance should play a decisive role, the ministers agreed in a paper seen by Reuters on Friday.

In addition, costs must be kept under control and accountability must be enforced, the joint paper said about the ESMA.

However, the paper said that in their current form and size, German trading venues would currently not be subject to mandatory European supervision authorities over trading in crypto-assets, and to reduce barriers to cross-border funds to help company financing, according to the paper.