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Saudi ACWA Power Signs MoU to Develop Green Hydrogen Project in Tunisia

The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s Minister of Industry, Mines and Energy, and Marco Arcelli, CEO of ACWA Power. (Asharq Al-Awsat)
The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s Minister of Industry, Mines and Energy, and Marco Arcelli, CEO of ACWA Power. (Asharq Al-Awsat)
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Saudi ACWA Power Signs MoU to Develop Green Hydrogen Project in Tunisia

The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s Minister of Industry, Mines and Energy, and Marco Arcelli, CEO of ACWA Power. (Asharq Al-Awsat)
The memorandum of understanding was signed by Fatma Thabet Chiboub, Tunisia’s Minister of Industry, Mines and Energy, and Marco Arcelli, CEO of ACWA Power. (Asharq Al-Awsat)

Saudi Arabia’s ACWA Power signed a memorandum of understanding with the Tunisian Ministry of Industry, Mines and Energy, with the aim to study the implementation of a new project to produce about 600,000 tons of green hydrogen annually in 3 stages, and export it to the European Union.

Under the MoU, ACWA Power will work to establish, operate and maintain electricity generation units with a production capacity of up to 12 gigawatts of renewable energy, including storage systems and transmission lines, in addition to a water desalination plant, electrolysis devices, and infrastructure projects to allow direct connection to the main pipeline.

The company said that the first phase will include the installation of renewable energy units with a capacity of four gigawatts, an electrolysis capacity of two gigawatts, in addition to battery storage facilities, to produce 200,000 tons of green hydrogen annually.

The project aims to export green hydrogen through “South 2”, a hydrogen pipeline developed as an initiative by the European Network of Transmission System Operators for Electricity (ENTSO-E). It is classified as a project of common interest by the EU. This pipeline connects Tunisia with Italy, Austria, and Germany.

The project will support Tunisia’s national strategy for green hydrogen and its derivatives, which was announced in October 2023. The strategy involves implementing an ambitious action plan to export over six million tons of green hydrogen to the EU by 2050, according to ACWA Power.

Ouael Chouchene, Tunisia’s Secretary of State for Energy Transition, said: “This project aligns perfectly with the Tunisian government’s national green hydrogen strategy... which targets an annual production of 8.3 million tons of green hydrogen and byproducts by 2050.”

He added: “We are confident that this agreement with ACWA Power will leverage Tunisia’s strengths, including its strategic geographic location, existing infrastructure, and skilled workforce, to create a more sustainable future for the country.”

For his part, Marco Arcelli, CEO of ACWA Power, said: “We are excited to work with the Tunisian government on this visionary project, bringing our expertise in renewables, desalination and green hydrogen to build a bridge with Europe to help reach its decarbonization targets. This project can also contribute significantly to economic growth, job creation, and sustainable energy solutions, exemplifying our shared vision for a greener future.”

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Business

Lebanon’s Deepening Cost-of-Living Crisis Raises Fears of Unrest

A woman carries grocery bags in Beirut amid continued price increases (Reuters)
A woman carries grocery bags in Beirut amid continued price increases (Reuters)
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Lebanon’s Deepening Cost-of-Living Crisis Raises Fears of Unrest

A woman carries grocery bags in Beirut amid continued price increases (Reuters)
A woman carries grocery bags in Beirut amid continued price increases (Reuters)

Lebanon’s worsening cost-of-living crisis and widening poverty are threatening to erase the country’s fragile economic recovery, raising fears of social unrest as inflation accelerates and the fallout from successive wars deepens.

Two major rounds of fighting over the past two years have wiped out much of the progress made in restoring economic growth, undermining efforts by the country’s political leadership and government to overcome the financial collapse and revive support from regional and international partners.

Food inflation has reached an average of 20% this year, with monthly increases of around 2%, while a recent World Bank report on Lebanon’s poverty outlook highlighted a sharp deterioration in food security.

The number of people facing crisis or emergency levels of food insecurity rose to approximately 1.24 million in 2026, up from 874,000 in 2025, with South Lebanon and Nabatieh among the hardest-hit regions.

Business and labor union sources warned that worsening living conditions could spark a wave of protests, confronting the government with challenges extending beyond its ongoing disputes with public sector employees and retirees.

Low incomes and soaring prices have already prompted intermittent strikes, partially disrupting ministries and public institutions and affecting Treasury revenues from vital services.

According to employer and labor representatives, more than a quarter of Lebanon’s residents now face severe poverty or acute economic hardship.

Based on the World Bank’s figures and an average household size of five, this represents roughly 250,000 families.

The sources estimated that broader financial hardship affects nearly 80% of residents, as cumulative price increases have pushed the inflation index close to 9,000 percentage points, largely reflecting successive surges since the financial and monetary crisis erupted in 2019.

The World Bank highlighted the deterioration in household living conditions following the escalation of hostilities in spring 2026.

Displaced families have become increasingly dependent on informal support networks and dwindling financial resources after losing income and productive assets.

Meanwhile, reduced electricity generation at Lebanon’s fuel-powered state plants has forced households to shoulder steep increases in private generator subscription fees, further eroding purchasing power. The crisis is compounded by the government’s strained finances and concerns over a further decline in Treasury revenues.

Lebanon’s financial collapse has left an estimated loss gap exceeding $70 billion, while successive rounds of fighting since autumn 2023 have caused more than $27 billion in direct and indirect economic and reconstruction-related losses, according to official estimates.

The World Bank forecasts a 6.4% contraction in gross domestic product in 2026, reversing the fragile 4.2% recovery recorded the previous year. Annual inflation rose to 17.3% in the first half of 2026, compared with 14.6% in 2025.

Despite conflict-related pressures, the World Bank reported that Lebanon’s public finances maintained a surplus of $1 billion, equivalent to 2.5% of GDP, through the end of May.

The surplus represented a 32% year-on-year increase, supported by a 26.6% rise in government revenues, particularly receipts from fuel excise taxes.

Public spending climbed 23.7%, driven by higher public sector salaries, capital expenditure, hospitalization costs and conflict-related Treasury advances.

Meanwhile, prices for water, electricity, gas and other fuels rose 25.3% year-on-year, while transportation costs increased 29.5% by midyear.

On the monetary front, the World Bank linked the Lebanese pound’s stable exchange rate against the US dollar to tight liquidity in local currency.

However, foreign currency reserves at Banque du Liban fell to $11.6 billion in mid-August, enough to cover approximately 6.6 months of imports, compared with $12.1 billion in mid-February.

The decline reflected the central bank’s need to draw on its reserves to meet foreign currency obligations amid reduced dollar availability in the market.

Lebanon’s trade deficit widened 8.8% year-on-year to $10.2 billion by the end of July, as exports fell 16.6% and imports rose 4.2%.

The report attributed the deterioration to conflict-related disruptions affecting exports, alongside higher oil prices and insurance premiums.

Energy imports rose 9% in value to approximately $3 billion during the first seven months of the year, despite a 31% decline in imported volumes.

The imbalance placed additional pressure on Lebanon’s current account, further straining foreign currency inflows and reserves.

Business

IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
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IMF: Saudi Attacks Could Have Negative Spillover 'Everywhere'

IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)
IMF Managing Director Kristalina Georgieva gestures during the Managing Director briefing on the Global Policy Agenda during the 2026 IMF-World Bank Group Annual Meetings at the Queen Sirikit National Convention Center (QSNCC) in Bangkok on October 14, 2026. (Photo by ANTHONY WALLACE / AFP)

International Monetary Fund head Kristalina Georgieva said Wednesday that recent attacks on Saudi Arabia could impact people "everywhere” as "the Saudi economy is important for the region and the world."

Given the Saudi economy’s importance, “these developments have potentially negative spillovers for everybody, everywhere," IMF managing director Georgieva said at a news conference during the Annual Meetings of the Fund and World Bank in Bangkok.

The warning comes at a time when energy flows and shipping activity in the region are under pressure, with supply disruptions potentially affecting energy and trade costs as well as economic activity, particularly in economies dependent on oil and gas imports.

The IMF’s forecasts, released on Tuesday, highlight the scale of the expected impact of the disruptions on the region’s economies. The IMF expects the economies of the Middle East and Central Asia to contract by 0.3 percent in 2026, followed by growth of 6.3 percent in 2027, a trajectory that reflects the pressures of the current crisis as well as the anticipated recovery as the disruptions ease and energy and trade flows are restored.

The expected repercussions vary across regional economies depending on their exposure to shipping disruptions and their ability to maintain exports. In its outlook for Saudi Arabia, the IMF raised its 2027 growth forecast to 7.9 percent, from 2.4 percent in July and 3.4 percent in April.

Meanwhile, it lowered its estimate for the economy’s contraction in 2026 to 3.3 percent, compared with 5 percent in its July update and 6.4 percent in April.

This trajectory reflects expectations that production and exports will regain momentum as shipping disruptions subside, although the speed and scale of the recovery will remain tied to developments in the security situation and the normalization of energy and trade flows.

The Saudi Ministry of Finance has projected stronger growth of 12.8 percent in 2027, according to the pre-budget statement.

Business

Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
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Taiwan Says Will Invest Up to US$4.4 bn in Alaska Gas Project

A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)
A snipers team provides security as US President Donald Trump boards Air Force One at Elmendorf Air Force Base in Anchorage, Alaska, on October 13, 2026. (Photo by Kent NISHIMURA / AFP)

Taiwan said Wednesday it will inject up to US$4.4 billion in the Alaska LNG project, after US President Donald Trump announced the island's investment in the to-be-built natural gas pipeline.

Taiwan imports nearly all of its energy supply and has sought to shore up Washington's support as China presses its claims of sovereignty over the island democracy.

"According to current plans, the cooperation will include the annual procurement of six million metric tons of Alaska LNG following production," the Ministry of Economic Affairs said in a statement.

It will also involve "participation in project development, with an estimated investment of up to US$4.4 billion," AFP quoted the ministry as saying.

"If the project progresses smoothly according to the planned timeline, it is expected to begin further supplementing domestic natural gas supplies as early as 2032," it added.

The statement came hours after Trump told a rally in Wasilla, Alaska, that Taiwan had agreed to buy 30 percent of the output from the pipeline over the next 20 year and also invest US$4.4 billion into the project.

Taiwan sources its LNG from multiple countries but the mix has changed dramatically this year after the start of the Middle East war when Iran claimed control of the Strait of Hormuz.