War Decimates Harvest in Sudan

Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
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War Decimates Harvest in Sudan

Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)
Farmers harvest peanuts at the New Halfa irrigated agricultural project in Kassala state in eastern Sudan on October 20, 2024. (Photo by AFP)

Ahmed Othman's farm has been spared from the deadly fighting that has spread across Sudan, but the war's toll on the economy and labor market has still reached him.

"I had to sell two vehicles" to afford to harvest this season's crops, he told AFP from his large sesame farm in eastern Sudan's Gedaref state.

A year and a half of war in Sudan between the army and the Rapid Support Forces (RSF) has triggered one of the world's worst humanitarian crises and devastated harvests.

Last month, United Nations experts accused the warring sides of using "starvation tactics" against 25 million civilians, and three major aid organizations warned of a "historic" hunger crisis as families resort to eating leaves and insects.

Hundreds of farmers have been driven off their once-fertile lands and those who have managed to remain face tremendous hardships.

Gedaref state is key to Sudan's corn production, a crucial crop for a population the World Food Programme warns is nearing famine -- a condition already declared at a displacement camp in the country's western region of Darfur.

"The first challenge we faced was securing funding as banks are experiencing a cash crunch due to the war," said Othman.

Cash shortages have occurred even in army-controlled Gedaref since the RSF took over the capital Khartoum and banks were ransacked.

The farmer said that without selling two out of his three vehicles he could not have afforded fuel for farm machinery or to pay workers to prepare the fields and tend to the crops.

"The second problem is the scarcity of farm workers due to the war, which has limited their movement across states," he added.

Most workers in Gedaref previously came from the adjacent states of Blue Nile and Sennar, as well as from Kordofan further away.

However, the war has restricted inter-state movement, leaving farm owners like Othman with only a small workforce.

Another local farmer, Suleiman Mohamed, said "the shortage of workers has driven up wages, so we are relying on those already in the area, mainly Ethiopians" who have long resided in Sudan's east as refugees.

War began in April 2023 between the army under the country's de facto ruler Abdel Fattah al-Burhan and the RSF, led by his former deputy Mohamed Hamdan Daglo.

Disruptions to the harvest this season could exacerbate the hunger crisis, made worse by restrictions on aid entry.

European and North American nations issued a joint statement last month that accused the warring sides of "systematic obstruction" of aid efforts. They said both sides should urgently admit the assistance to millions of people in dire need.

In southern Gedaref, another farmer, Othman Abdelkarim, said many have already given up on this year's season.

"Most of us have relied on ourselves for financing, and some simply opted out and didn't plant," he said, pointing to an unplanted field west of his farm.

"This crisis will delay the harvest and affect its quality," he added.

The state's agriculture ministry reported that nine million acres (3.6 million hectares) were cultivated in Gedaref this year -- five million with corn and the rest with sesame, sunflowers, peanuts and cotton.

That is less than half of the roughly 20 million acres planted annually before the war.

Farmer Suleiman Mohamed fears there is no hope for this season's crop.

"With fewer workers and delayed harvesting, we'll face losses, and part of the crop will be lost," he said from his farm in eastern Gedaref.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.