World Bank Urges Region’s States to Turn Climate, Tech Challenges into Opportunities

A citizen participates in the “Saudi Green Initiative” (SPA)
A citizen participates in the “Saudi Green Initiative” (SPA)
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World Bank Urges Region’s States to Turn Climate, Tech Challenges into Opportunities

A citizen participates in the “Saudi Green Initiative” (SPA)
A citizen participates in the “Saudi Green Initiative” (SPA)

The World Bank has warned that countries in the Middle East and North Africa (MENA) face a critical crossroads, requiring “urgent” reforms to turn major challenges, aging populations, climate change, and technological transformation, into real opportunities that can secure sustainable growth for future generations.

At the same time, the Bank highlighted Saudi Arabia’s coordinated reforms under its Vision 2030, which have raised women’s workforce participation from 17% in 2016 to over 35% in 2024.

In an interview with Asharq Al-Awsat, Fadia Saadah, World Bank Regional Director for Human Development in the Middle East, North Africa, Afghanistan, and Pakistan, outlined the Bank’s view on the most pressing reforms and how Gulf Cooperation Council (GCC) countries can leverage significant investments in human capital to close gaps and boost inclusive economic participation.

Developing Skills

Saadah noted that GCC countries, including Saudi Arabia, are seeking to maximize the benefits of foreign labor through labor market policy reforms, balancing the need to fill skills gaps with supporting economic growth, while investing in education, skill development, and incentives to encourage citizens’ participation in the private sector.

She highlighted Saudi Arabia’s extensive reforms in recent years to improve its sponsorship (kafala) system, enhancing the mobility of foreign workers and improving working conditions.

These reforms have been paired with Saudization programs, such as Nitaqat, which set quotas for employing Saudi nationals in the private sector.

According to Saadah, these measures—alongside financial support programs, retraining initiatives, and women’s empowerment policies—have contributed to increased citizen participation, particularly among women. Digital platforms and targeted training programs have also supported citizens, especially youth and women, by providing access to employment opportunities and developing skills required for a changing labor market.

Digital Transformation and Vision 2030

Under Vision 2030 and government digital initiatives, Saadah said Saudi Arabia has prioritized digital services, data-driven decision-making, and inclusive access, focusing on women and youth as central to the digital transformation. The kingdom is investing in digital infrastructure and artificial intelligence to modernize public service delivery and expand economic opportunities.

While human capital in the region has improved significantly, Saadah cautioned that its full potential remains untapped for driving economic growth. Despite progress in education and healthcare, aging populations and unhealthy lifestyle patterns continue to strain pension systems and healthcare infrastructure. Conversely, climate challenges and technological shifts offer opportunities to enhance green skills and digital readiness, opening new avenues for sustainable growth.

Institutional Reforms Needed

In its mid-September report, Embracing and Shaping Change: Human Development in MENA in a Transforming Phase, the World Bank noted that low human development investment is both a cause and consequence of economic performance and income growth. The report urged governments in the region to address governance gaps and ensure sustainable financing for human development.

The report identified three major trends that could erode development gains if not effectively addressed:

Aging populations: With the share of older adults expected to double by 2050, pension and healthcare systems face major challenges.

Climate crisis: Rising temperatures and water scarcity threaten health and food security, though green transition policies could create new opportunities.

Technological transformation: Although regional labor markets are less exposed to automation than elsewhere, the region must prepare to fully benefit from artificial intelligence, improve digital infrastructure, and reduce internet costs.

Saadah emphasized that building on these achievements requires continued investment in future-ready human development policies, including strengthening human capital, advancing institutional reforms, and adopting strategies tailored to each country.

Women’s Empowerment

Saadah said Saudi Arabia offers a clear example of achieving better outcomes through broad reform programs. Vision 2030, labor market strategy, and human capacity development initiatives have aligned education and skills development with labor market needs.

Efforts focus on technical and vocational education, digital skills, and lifelong learning to enhance private sector employment opportunities, particularly for youth and women. Digital platforms such as Qawi and Jadarat have facilitated access to jobs and training programs, improved labor market matching, supported flexible and remote work, and developed future-ready skills, making the labor market more inclusive and responsive.

Reforms have also included removing guardianship requirements for women to work or travel, criminalizing workplace harassment, unifying retirement ages, and banning gender discrimination in hiring and pay. Complementary support programs, such as Wasl for transportation, Qara for childcare, and Maran for workplace flexibility, along with training in nontraditional sectors like ICT and aviation, have further empowered women.

Saadah concluded that these measures have enabled women to enter and remain in the workforce, especially in the private sector, contributing to shifts in social attitudes and broader acceptance of women’s economic participation. She stressed that enhancing women’s participation is not merely a social choice but an economic strategy, as reforming social norms and official institutions is essential for achieving a sustainable and deeply impactful transformation.



ECB's Rehn Sees Downside Risks to Inflation, Urges Action on Ukraine Funding

FILE PHOTO: Olli Rehn in Helsinki, Finland, January 28, 2024. Lehtikuva/Heikki Saukkomaa via REUTERS
FILE PHOTO: Olli Rehn in Helsinki, Finland, January 28, 2024. Lehtikuva/Heikki Saukkomaa via REUTERS
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ECB's Rehn Sees Downside Risks to Inflation, Urges Action on Ukraine Funding

FILE PHOTO: Olli Rehn in Helsinki, Finland, January 28, 2024. Lehtikuva/Heikki Saukkomaa via REUTERS
FILE PHOTO: Olli Rehn in Helsinki, Finland, January 28, 2024. Lehtikuva/Heikki Saukkomaa via REUTERS

Inflation in the euro zone faces downside risks in the medium term, even as price growth has returned to the ECB's 2% target, European Central Bank policymaker Olli Rehn said, according to a report in a magazine on Saturday.

The sharp drop from the October 2022 peak of 10.6% to around 2% currently was achieved without triggering mass unemployment or a severe slowdown, he told Italian financial magazine Milano Finanza.

"The good news is that inflation has stabilized around the ECB's symmetric 2% target, supporting real incomes in Europe," Reuters quoted him as saying. "Our latest forecast suggests inflation will remain slightly below 2% over the horizon."

Rehn also urged EU leaders to resolve a stalled plan for a Ukraine "repair loan" funded by Russia's frozen assets, calling it "essential, even existential."

He dismissed speculation about ECB involvement, saying such a move would breach the EU Treaty's ban on monetary financing.

Instead, he backed a European Commission proposal under Article 122, often called the 'EU's emergency clause,' that gives the EU Council the power to adopt measures proposed by the European Commission in exceptional circumstances, bypassing the ordinary legislative process and the European Parliament.

"Every European should support using frozen Russian assets to help Ukraine," he said.

The Finnish policymaker, who has served in senior EU roles for decades, confirmed he would be a strong candidate for ECB vice president when the post opens next year.

"I have received encouragement from various parts of Europe," Rehn added.


World Bank to Partner with Global Vaccine Group Gavi on $2 Billion in Funding

The Vaccine Alliance (GAVI) logo and US flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
The Vaccine Alliance (GAVI) logo and US flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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World Bank to Partner with Global Vaccine Group Gavi on $2 Billion in Funding

The Vaccine Alliance (GAVI) logo and US flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
The Vaccine Alliance (GAVI) logo and US flag are seen in this illustration taken April 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

The World Bank Group said on Saturday it is working with global vaccine alliance Gavi to strengthen financing for immunization and primary healthcare systems, planning to mobilize at least $2 billion over the next five years in joint financing.

The two organizations will also work together to advance vaccine manufacturing in Africa as part of a World Bank goal to help countries reach 1.5 billion people with quality, affordable health services by 2030, Reuters quoted the World Bank as saying.

Gavi is a public-private partnership that helps vaccinate more than half the world’s poorest children against diseases.

"Our expanded collaboration with the World Bank Group reflects a long-standing joint effort to support countries as they build robust and resilient health systems," said Sania Nishtar, Gavi's chief executive.

US Health Secretary Robert F. Kennedy Jr. said in June the United States would no longer contribute funding to Gavi, alleging that the group ignores safety and calling on it to "justify the $8 billion that America has provided in funding since 2001."

The Trump administration had also indicated in March it planned to cut annual funding of around $300 million for Gavi as part of a wider pullback from international aid.

In June, Gavi had more than $9 billion, less than a target of $11.9 billion, for its work over the next five years helping to immunize children.

Other donors, including Germany, Norway and the Gates Foundation, have pledged money this year for Gavi's future work.


Defying Trump, EU Hits X with $140 Million

(FILES) This illustration photograph shows the logo of social network X (formerly Twitter) and a photograph of CEO of social network X, Elon Musk displayed on a smartphone in Brussels on September 27, 2024. (Photo by Nicolas TUCAT / AFP)
(FILES) This illustration photograph shows the logo of social network X (formerly Twitter) and a photograph of CEO of social network X, Elon Musk displayed on a smartphone in Brussels on September 27, 2024. (Photo by Nicolas TUCAT / AFP)
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Defying Trump, EU Hits X with $140 Million

(FILES) This illustration photograph shows the logo of social network X (formerly Twitter) and a photograph of CEO of social network X, Elon Musk displayed on a smartphone in Brussels on September 27, 2024. (Photo by Nicolas TUCAT / AFP)
(FILES) This illustration photograph shows the logo of social network X (formerly Twitter) and a photograph of CEO of social network X, Elon Musk displayed on a smartphone in Brussels on September 27, 2024. (Photo by Nicolas TUCAT / AFP)

Elon Musk's social media company X was fined 120 million euros ($140 million) by EU tech regulators on Friday for breaching online content rules, the first sanction under landmark legislation that once again drew criticism from the US government.

X's rival TikTok staved off a penalty with concessions, according to Reuters.

Europe's crackdown on Big Tech to ensure smaller rivals can compete and consumers have more choice has been criticized by the administration of US President Donald Trump, which says it singles out American companies and censors Americans.

The European Commission, the EU's executive, said its laws do not target any nationality and that it is merely defending its digital and democratic standards, which usually serve as the benchmark for the rest of the world.

The EU sanction against X followed a two-year-long investigation under the bloc's Digital Services Act (DSA), which requires online platforms to do more to tackle illegal and harmful content.

The EU's investigation of ByteDance's social media app TikTok led to charges in May that the company had breached a DSA requirement to publish an advertisement repository allowing researchers and users to detect scam advertisements.

The European Commission's tech chief Henna Virkkunen said X's modest fine was proportionate and calculated based on the nature of the infringements, their gravity in terms of affected EU users and their duration.

“We are not here to impose the highest fines. We are here to make sure that our digital legislation is enforced and if you comply with our rules, you don't get the fine. And it's as simple as that,” she told reporters.

“I think it's very important to underline that DSA is having nothing to do with censorship,” Virkkunen said.

She said forthcoming decisions on companies which have been charged with DSA violations are expected to take a shorter time than the two years for the X case.

“I'm really expecting that we will do the final decisions now faster,” she said.

Ahead of the EU decision, US Vice President JD Vance said on X: “Rumors swirling that the EU commission will fine X hundreds of millions of dollars for not engaging in censorship. The EU should be supporting free speech not attacking American companies over garbage.”

TikTok, which pledged changes to its ad library to be more transparent, urged regulators to apply the law equally and consistently across all platforms.

EU regulators said X's DSA violations included the deceptive design of its blue checkmark for verified accounts, the lack of transparency of its advertising repository and its failure to provide researchers access to public data.

The Commission said the investigation into the dissemination of illegal content on X and measures taken to combat information manipulation and a separate probe into TikTok's design, algorithmic systems and obligation to protect children continue.

DSA fines can be as high as 6% of a company's annual global revenue.