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Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action

A group photo of OAPEC members. (SPA)
A group photo of OAPEC members. (SPA)
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Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action

A group photo of OAPEC members. (SPA)
A group photo of OAPEC members. (SPA)

The transformation of the Organization of Arab Petroleum Exporting Countries (OAPEC) into the Arab Energy Organization marks a strategic step toward reinforcing Arab cooperation in the energy sector.

The move supports collective efforts and contributes to sustainable development across the region. By broadening its scope to encompass all forms of energy—not just petroleum—the organization is adapting to modern demands and becoming more inclusive.

This shift provides an opportunity to enhance the efficiency of Arab collaboration in the energy field, keeping pace with the evolving global energy landscape, which now includes diversified energy sources and renewable energy. It also positions Arab nations to confront global challenges through unified policies and strategies, strengthening their presence in international markets while bolstering energy security within the region.

Foundation of OAPEC

OAPEC was established in 1968 with the aim of separating petroleum policy discussions from the political conflicts that often dominated the Arab League at the time. Membership was restricted to Arab petroleum-exporting countries, enabling the creation of shared Arab enterprises, such as the Arab Petroleum Investments Corporation (APICORP), headquartered in Dammam, Saudi Arabia.

Over the decades, OAPEC played a key role in shaping Arab petroleum policies and made impactful decisions, such as the 1973 oil embargo. However, calls have grown over the years to transform the organization into a more comprehensive entity that encompasses various energy sectors, boosting Arab cooperation in this critical area.

New Vision for Arab Energy Integration

In this context, Saudi Energy Minister Prince Abdulaziz bin Salman proposed transforming OAPEC into the Arab Energy Organization. The proposal, which has faced challenges due to complex Arab political dynamics, aims to expand cooperation to include renewable and nuclear energy alongside traditional energy sources.

The proposal outlines several strategic objectives, including fostering Arab integration in energy and economic sectors, unifying policies among member states to strengthen collective action, and contributing to sustainable development in the region.

Unlocking New Opportunities for Cooperation

If implemented, this transformation would signify a paradigm shift in Arab collective efforts. The organization would become a hub for coordinating policies and exchanging expertise among member states. It would also empower Arab nations to address global energy challenges while promoting sustainable economic development within the region.

While the success of this transformation depends on political consensus and collective determination to overcome obstacles, it presents a historic opportunity to strengthen Arab integration in one of the world’s most strategic sectors.

Coordinating Energy Initiatives

OAPEC recently announced its restructuring and renaming as the Arab Energy Organization (AEO). According to energy experts, the change allows for more comprehensive coordination of energy initiatives across the Arab world. Such efforts will support and enhance the export of oil and gas while aligning with the global trend of diversifying energy sources.

Dr. Mohammed Al-Sabban, an international economic and energy consultant, explained to Asharq Al-Awsat that the original name, OAPEC, was centered on petroleum exports. However, the current shift toward multiple energy sources and greater collaboration among Arab nations motivated Saudi Arabia to propose renaming the organization as the Arab Energy Organization.

Al-Sabban emphasized that the new name reflects a broader mandate, offering an opportunity for coordinated efforts in various energy sectors.

“Western nations claim they are moving away from oil and gas production, yet they continue to heavily support coal—a clear double standard,” he remarked.

He noted that Saudi Arabia is intensifying efforts to diversify energy sources, focusing on hydrogen development, renewable energy, and nuclear power. These steps align with the Kingdom’s larger vision of sustainability and global environmental commitments.

During its 113th ministerial meeting in December, OAPEC approved Saudi Arabia’s proposal to rename the organization as the Arab Energy Organization.

OAPEC, founded in 1968, includes 10 member states: Saudi Arabia, Kuwait, Libya, Algeria, Qatar, the UAE, Bahrain, Iraq, Egypt, and Syria. Of these, six are also members of OPEC.

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Business

Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
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Aljadaan: Emerging Markets Account for 70% of Global Growth

Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat
Al-Jadaan speaking to the attendees at the "AlUla Conference for Emerging Market Economies" (Asharq Al-Awsat

Saudi Minister of Finance Mohammed Aljadaan stressed Sunday that the world economy is going through a “profound transition,” saying emerging markets and developing economies now account for nearly 60 percent of the global Gross Domestic Product (GDP) in purchasing power terms and over 70 percent of global growth.

In his opening remarks at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla, the minister said these economies have become an increasingly important driver of global growth with their share of global economy more than doubling since 2010.

“Today, the 10 emerging economies in the G20 alone account for more than half of the world growth. Yet, they face a more complex and fragmented environment, elevated debt levels, slower trade growth and increasing exposure to geopolitical shocks.”

“Unfortunately, more than half of low income countries are either in or at the risk of debt distress. At the same time global trade growth has slowed at around half of what it was pre the pandemic,” Aljadaan added.

The Finance Minister stressed that the Saudi experience over the past decade has reinforced three lessons that may be relevant to the discussions at the two-day conference, which brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics.

“First, macroeconomic stability is not the enemy of growth. It is actually the foundation,” he said.

“Structural reforms deliver results only when institutions deliver. So there is no point of reforming ... if the institutions are unable to deliver,” he stated.

Finally, he said that “international cooperation matters more, not less, in a fragmented world.”

Business

Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
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Georgieva from AlUla: Growth Still Lacks Pre-pandemic Levels

Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)
Kristalina Georgieva speaking to attendees at the second edition of the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat)

International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Sunday that world growth still lacks pre-pandemic levels, expressing concern as she expected more shocks amid high spending and rising debt levels in many countries.

Georgieva spoke at the AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the IMF in AlUla.

The two-day conference brings together a select group of ministers and central bank governors, leaders of international organizations, leading investors and academics to deliberate on policies to global stability, prosperity, and multilateral collaboration.

Georgieva said that the conference was launched last year in recognition of the growing role of emerging market economies in a world of sweeping transformations.

“I came out of this gathering .... With a sense of hope for the pragmatic attitude and determination to pursue good policies and build strong institutions,” she said.

Georgieva stressed that “good policies pay off,” and said that growth rates across emerging economies reached four percent this year, exceeding by a large margin those of advanced economies that are around 1.5 percent.

Business

Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
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Saudi Arabia’s flynas, Syrian Civil Aviation Authority Partner to Launch 'flynas Syria'

The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)
The new airline will operate commercial air transport services in accordance with approved regulations and standards (flynas)

Saudi budget carrier flynas has signed an agreement with the Syrian General Authority of Civil Aviation and Air Transport to establish a new commercial airline under the name "flynas Syria," with operations scheduled to begin in the fourth quarter of 2026.

Saturday’s agreement comes within the framework of bilateral cooperation between Saudi Arabia and Syria, as well as the strategic investment agreements between the two countries, coordinated with the Saudi Ministry of Investment and the Syrian General Authority of Civil Aviation and Air Transport.

The new airline will operate commercial air transport services in accordance with approved regulations and standards, meeting the highest safety and aviation security requirements. All licensing and operational procedures will be completed in coordination with the relevant authorities.

The carrier will be established as a joint venture, with 51% ownership held by the Syrian General Authority of Civil Aviation and Air Transport and 49% by flynas.

The new airline will operate flights to several destinations across the Middle East, Africa, and Europe. This expansion aims to bolster air traffic to and from Syria, enhance regional and international connectivity, and meet growing demand for air travel.

"This step is part of our commitment to supporting high-quality cross-border investments. The aviation sector is a key enabler of economic development, and the establishment of 'flynas Syria' serves as a model for constructive investment cooperation,” said Saudi Minister of Investment Khalid Al-Falih.

“This partnership enhances economic integration and market connectivity and supports development goals by advancing air transport infrastructure, ultimately serving the mutual interests of both nations and promoting regional economic stability,” he added.

President of the Syrian General Authority of Civil Aviation and Air Transport Omar Hosari also stated that the establishment of flynas Syria represents a strategic step within a comprehensive national vision aimed at rebuilding and developing Syria's civil aviation sector on modern economic and regulatory foundations.

“This will be achieved while balancing safety requirements, operational sustainability, investment stimulation, and passenger services. The partnership reflects the state's orientation toward smart cooperation models with trusted regional partners, ensuring the transfer of expertise, the development of national capabilities, and the enhancement of Syria's air connectivity with regional and international destinations, in line with global best practices in the air transport industry."

flynas Chairman Ayed Al-Jeaid stated that the company continues to pursue strategies aimed at growth and international expansion, describing the agreement as a historic milestone in the company's journey and a promising investment model in partnership with Syria.

flynas CEO Bander Al-mohanna said the step represents a qualitative leap in the company's strategy and financial performance, highlighting the transfer of the company's low-cost aviation experience to the Syrian market to support regional and international air connectivity.

flynas currently operates 23 weekly flights from Riyadh, Jeddah, and Dammam to Damascus, including two daily direct flights from Riyadh, one daily flight from Jeddah, and two weekly flights from Dammam.

The airline made history on June 5, 2025, by adding the Syrian capital to its network, becoming the first Saudi carrier to resume scheduled flights to Damascus.