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Davos 2024

World economy to weaken in 2024, WEF survey forecasts 

World economy to weaken in 2024, WEF survey forecasts 
Some 43 percent of the economists predicted an economic slowdown in the US. Shutterstock
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Updated 15 January 2024
ARAB NEWS 
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World economy to weaken in 2024, WEF survey forecasts 

World economy to weaken in 2024, WEF survey forecasts 
Updated 15 January 2024
ARAB NEWS 
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RIYADH: Some 56 percent of chief economists expect the global economy to slow down in 2024 along with an acceleration in geo-economic fragmentation, a survey showed.  

The latest Chief Economists Outlook from the World Economic Forum noted that the global economy continues to grapple with headwinds from tight financial conditions and rapid advances in generative artificial intelligence.  

According to the survey report, 43 percent of chief economists foresee unchanged or stronger conditions in 2024, while seven out of 10 participants opined that geoeconomic fragmentation will accelerate during the period.  

“The latest Chief Economists Outlook highlights the precarious nature of the current economic environment. Amid accelerating divergence, the resilience of the global economy will continue to be tested in the year ahead,” said Saadia Zahidi, managing director at the World Economic Forum. 

She added: “Though global inflation is easing, growth is stalling, financial conditions remain tight, global tensions are deepening and inequalities are rising — highlighting the urgent need for global cooperation to build momentum for sustainable, inclusive economic growth.” 

A strong majority of survey participants, comprising 77 percent and 70 percent espectively, believe in the loosening of labor markets and financial conditions in 2024.  

The report noted that economic growth prospects have slightly weakened in the Middle East and North Africa region due to broader uncertainty about the trajectory of the Israel-Hamas war and its implications.  

Although 61 percent of economists still foresee moderate or stronger growth in MENA during 2024, regional prospects remain clouded by weak oil demand and a sharp contraction in tourism. 

Some 93 percent of economists expect at least moderate growth in South Asia, while 86 percent predicted upward movement of the economy in the East Asia and Pacific region.  

In Europe, the outlook has weakened significantly since the September 2023 survey, with the share of respondents expecting weak or very weak growth almost doubling to 77 percent.  

Some 43 percent of the economists predicted an economic slowdown in the US, the survey report noted.  

Chief economists who took part in the survey expect artificial-intelligence-enabled benefits to vary widely across income groups, with notably more optimistic views about the effects in high-income economies.  

Some 79 percent of the participants said generative AI will increase the efficiency of output production and innovation in 76 percent of the high-income economies this year.

Looking at the next five years, 94 percent expect these productivity benefits to become economically significant in high-income economies, compared to only 53 percent for low-income economies. 

Topics: Davos 2024

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Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes
Updated 10 November 2024
NADIN HASSAN  
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Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes
  • The new destinations, Najran, Tabuk, and Yanbu, are strategically significant
  • Expansion marks the first phase of flyadeal’s 2025 growth plan
Updated 10 November 2024
NADIN HASSAN  

RIYADH: Saudi Arabia’s low-cost airline, flyadeal, will launch three new domestic routes from Dammam starting in January, aligning with the Kingdom’s Vision 2030 objectives. 

The airline will launch daily flights from Dammam to Najran and four weekly services to Tabuk on Jan. 1, followed by three weekly flights to Yanbu starting Jan. 2.

The announcement was made by Steven Greenway, CEO of flyadeal, on the sidelines of the World Travel Market in London.

Greenway said the new routes are part of flyadeal’s mission to connect smaller towns and cities across the Kingdom, catering to populations under 400,000 that are underserved yet have a growing demand for air travel.

“Having well-established bases in Riyadh and Jeddah, flyadeal is now strengthening its presence in the Eastern Province by increasing frequencies on existing routes and adding three new destinations connected to Dammam,” Greenway said.

He added: “Our new flights will facilitate travel for business and leisure purposes, support the growing desire among Saudis and international visitors to discover the rich diversity that the country offers, and attract a growing expatriate population to explore the Kingdom.”

The expansion complements Vision 2030, which seeks to diversify Saudi Arabia’s economy and transform the Kingdom into a global transportation and logistics hub.

By enhancing access to remote and economically vital cities, flyadeal supports Vision 2030 objectives to strengthen tourism, stimulate business opportunities, and increase domestic mobility.

The new routes will also advance the nation’s strategy to welcome 150 million visitors annually by 2030.

The expansion marks the first phase of flyadeal’s 2025 growth plan, which includes adding more domestic routes and launching international flights from its primary hubs in Riyadh, Jeddah, and Dammam in the coming months.

The developments align with Saudi Arabia’s broad national efforts to establish itself as a key player in the aviation sector, with enhanced infrastructure, expanded air service networks, and a focus on customer experience.

Operating from its three main bases, Riyadh, Jeddah, and Dammam, flyadeal serves nearly 30 year-round and seasonal destinations across the Kingdom and select cities in the Middle East, Europe, and North Africa.

The airline’s fleet comprises 36 modern Airbus A320 narrowbody aircraft, optimized for efficiency and passenger comfort, reinforcing Saudi Arabia’s commitment to advancing sustainable and high-quality air travel.

The new destinations, Najran, Tabuk, and Yanbu, are strategically significant. Najran, an agricultural hub in the southwest, contributes substantially to the local economy.

Tabuk serves as a gateway to the Red Sea coast and plays a pivotal role in the Kingdom’s large-scale tourism and development projects.

Yanbu, Saudi Arabia’s second-largest port in the Madinah province, is a hub for petroleum and petrochemical industries, supporting national economic objectives and Vision 2030’s goals for diversified growth.

With international routes to Amman, Cairo, and Istanbul, flyadeal positions itself as a crucial connector between the Kingdom and key regional and international destinations, advancing Vision 2030’s ambition of creating an integrated, globally connected Saudi Arabia.

Topics: Saudi Arabia flyadeal Dammam

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National climate commitments: A reality check since Paris

National climate commitments: A reality check since Paris
Updated 10 November 2024
MANAL AL-BARAKATI
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National climate commitments: A reality check since Paris

National climate commitments: A reality check since Paris
  • Current pledges fall short of avoiding disaster
  • Financial support must be tangible, says UNFCCC chief
Updated 10 November 2024
MANAL AL-BARAKATI

BAKU: As COP29 convenes in Baku, global attention turns once again to the question of climate commitments and progress made since the landmark 2015 Paris Agreement.

The upcoming conference will pose a pressing question: Has the world truly advanced in meeting the emissions targets that science says are essential to avoid catastrophic climate change?

A close examination of the current Nationally Determined Contributions shows both progress and an urgent need for more ambitious action.

Enhancing accountability and transparency

For many nations, the Paris Agreement remains a guiding framework, but as the UN’s first global stocktake at COP28 demonstrated, current commitments and transparency mechanisms are insufficient for real progress.

COP29 aims to improve accountability measures to ensure that pledged funds are disbursed effectively and on schedule. 

Transparency mechanisms such as regular reporting on climate finance allocations and emissions reduction progress are being considered to enhance trust and accountability in international climate cooperation.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, highlighted the importance of tracking mechanisms to ensure that “climate cash counts,” emphasizing that financial support must translate into tangible, measurable results.

Stagnation in reducing global emissions

Since the Paris Agreement’s adoption, NDCs have become the primary framework for countries to articulate their climate ambitions, but recent data shows that the majority fall short of meeting the global temperature goal.

According to the latest report from the UN Climate Change Secretariat, global greenhouse gas emissions remain perilously close to 2019 levels, with minimal reduction progress.

Even with full implementation of all current NDCs, emissions are projected to peak before 2030 but fall short of the reductions needed to keep global warming below the critical threshold of 1.5°C above pre-industrial levels.

This gap illustrates an alarming trend — while commitments have increased in number and specificity, their collective impact remains insufficient to prevent severe climate impacts.

In particular, countries with historically high emissions — including the US, China, and India — have struggled to translate ambitious pledges into sustained reductions.

On the other hand, nations such as those in the EU, New Zealand, and several Pacific Island states have either reduced emissions substantially or put policies in place that could serve as models for more comprehensive global action.

Germany is another example of a country which has pioneered renewable energy legislation to achieve a record 46 percent share of renewable power in its electricity mix in recent years.

Meanwhile, Denmark and Sweden have established national frameworks targeting net-zero emissions by the middle of the century. Yet, many of the world’s largest emitters remain behind their targets, underscoring a divide between ambition and action that is critical for COP29 to address.

Climate-vulnerable regions, including sub-Saharan Africa and island nations, have also made considerable strides in setting strong climate policies despite contributing relatively little to global emissions. However, these nations often face implementation barriers that more affluent countries do not, primarily due to resource limitations.

Financial commitments fall short of needs

Climate finance has emerged as a critical factor in closing the emissions gap, especially for developing countries facing disproportionate impacts from climate change. Climate-related damages have skyrocketed in recent years, with extreme weather events causing billions in economic losses worldwide.

Stiell underscored this point by stressing the need for exponential growth in climate finance to ensure equitable transitions across economies.

“We simply can’t afford a world of clean energy haves and have-nots,” he said, warning that without substantive financing commitments only the wealthiest nations would be able to protect themselves against the intensifying climate crisis.

Yalchin Rafiyev, Azerbaijan’s lead negotiator, reinforced this: “We can see the divides that need to be bridged, but we must have a climate finance target that accounts for the needs of the most vulnerable.”

While the latest OECD data indicates developed countries mobilized $100 billion for climate action in 2022, this figure falls drastically short of the trillions of dollars needed annually.

However, the World Bank and the International Monetary Fund face mounting calls to further expand these initiatives and reduce financing barriers for developing nations.

As COP29 unfolds, global leaders face the challenging task of ensuring that the commitments made are not just promises but foundational steps toward meaningful, global climate action. The stakes have never been higher.

Topics: COP29 Green & Blue

COP29 set to begin with hopes for more funding to fight climate change

COP29 set to begin with hopes for more funding to fight climate change
Updated 10 November 2024
Haifa Alshammari
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COP29 set to begin with hopes for more funding to fight climate change

COP29 set to begin with hopes for more funding to fight climate change
  • Just, equitable action vital, says COP29’s Mukhtar Babayev
Updated 10 November 2024
Haifa Alshammari

BAKU: The highly anticipated COP29 UN climate change conference opens on Monday in Baku, Azerbaijan, bringing together world leaders, experts, and activists to tackle the urgent environmental challenges facing the planet.

Running through Nov. 22, this year’s event is centered around the theme “In Solidarity for a Green World.”

With over 50,000 participants expected, including top industry leaders and policymakers, COP29 aims to drive global climate action. However, several key leaders — EU President Ursula von der Leyen, US President Joe Biden, and Brazil’s President Luiz Inacio Lula da Silva—will be notably absent, according to Reuters.

COP29 has a special focus on climate finance, as parties aim to set a New Collective Quantified Goal on funding. 

Expectations are high as delegates prepare to discuss topics including carbon emissions reduction, sustainable development, and the integration of climate resilience into national policies. 

Azerbaijan is a significant producer of fossil fuels, just as last year’s host the UAE, but COP29 President-Designate Mukhtar Babayev told Arab News recently that hosting the conference is a sign of change.

“Like Saudi Arabia, Azerbaijan has historically been a significant energy producer, particularly in oil and gas. Hosting COP29 signifies our shift from traditional energy sources to embracing renewable energy solutions,” he said. 

“This event will allow us to showcase our ongoing efforts to diversify our energy mix, investing heavily in wind, solar, and hydrogen energy projects,” he added. 

The conference aims to deliver support for urgent action and foster a sense of shared responsibility between international organizations. 

Babayev highlighted Azerbaijan’s role in coordinating global efforts. “We hope that COP29 in Azerbaijan will serve as a platform for developing nations to voice their unique climate challenges and solutions.

“As a country that has faced environmental and economic transformation, Azerbaijan understands the delicate balance between development needs and climate responsibility,” he said. 

He added: “We can facilitate inclusive dialogues between the Global South and developed nations to ensure that climate action is equitable and just.” 

Commenting on the country’s preparations for the influx of visitors, Babayev said: “In terms of logistics and to ensure Baku is ready to host thousands of delegates from across the globe, we have been investing in the city’s infrastructure, with a strong emphasis on sustainability.” 

Moreover, investments are being made in expanding green public transportation options, enhancing conference facilities, and optimizing urban mobility to minimize environmental impact during the event, he stated.

“Additionally, we are committed to achieving a green COP by integrating renewable energy into the event’s operations and aiming for a zero-waste policy throughout the conference,” said Babayev. 

Some of its established environmental protection initiatives, according to Babayev, include reforesting degraded areas and protecting the Caspian Sea. 

“COP29 will spotlight these initiatives and encourage international collaboration to replicate them.” 

Although the path ahead is challenging, COP29 represents a crucial opportunity to turn ambition into tangible results for generations to come. 

“We are prepared to lead, innovate, and foster the international cooperation needed to tackle the climate crisis and build a more sustainable future for all,” said Babayev.

Topics: COP29 Green & Blue

Egypt’s monthly inflation eases by 1.5% in October

Egypt’s monthly inflation eases by 1.5% in October
Updated 9 min 53 sec ago
NOUR EL-SHAERI   
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Egypt’s monthly inflation eases by 1.5% in October

Egypt’s monthly inflation eases by 1.5% in October
  • Easing was primarily driven by a 2.1% decrease in fruit prices and a 0.4% decline in vegetable and hotel services prices
  • Egypt’s inflation rate dropped to 26.3% in October
Updated 9 min 53 sec ago
NOUR EL-SHAERI   

RIYADH: Lower food prices helped ease Egypt’s inflation rate, which rose by 1.5 percent in October, down from the 2.3 percent increase recorded in September, according to official data.

The Central Agency for Public Mobilization and Statistics said the general consumer price index reached 240 points last month, reflecting the modest decline in inflationary pressures. 

The easing was primarily driven by a 2.1 percent decrease in fruit prices and a 0.4 percent decline in vegetable and hotel services prices, which helped mitigate cost increases in other sectors. 

On an annual basis, Egypt’s inflation rate dropped to 26.3 percent in October, a sharp decline from the 38.5 percent reported in the same month of the previous year, signaling a cooling trend in price pressures. 

This comes as Egypt has been grappling with high inflation in recent years, driven by a mix of global economic pressures, currency devaluation, and rising import costs, which have led to persistent price increases, particularly in essential goods and services, straining household budgets and impacting consumer spending. 

While some categories saw price reductions, others continued to exert upward pressure. Meat and poultry prices surged 3.3 percent, while fish and seafood prices climbed 2.1 percent. 

Dairy products, including cheese and eggs, rose by 2 percent, while sugar, tea, and cocoa recorded a 1.2 percent increase. Bottled water and natural juices increased by 1.1 percent, and cereal and bread prices rose by 0.8 percent. 

Energy costs remained a key factor, with a 7.2 percent increase in electricity, gas, and fuel prices. Housing maintenance expenses rose by 1.5 percent, while rent increased by 0.7 percent. 

Medical services also contributed to the inflationary trend, with outpatient services up 2.4 percent and hospital services increasing by 1.7 percent. 

Food and beverage prices saw an annual increase of 26.9 percent, driven by sharp rises across several key categories. 

Grains and bread prices surged by 36.7 percent, while meat and poultry climbed 19.7 percent. Fish and seafood rose by 21.9 percent, and dairy products, including cheese and eggs, jumped 29.9 percent. Oils and fats increased by 14.9 percent, and fruits were up 28.5 percent. 

The vegetable category saw one of the largest hikes, rising by 39.1 percent. Sugar and sugary foods increased by 15.2 percent, while tea, coffee, and cocoa prices grew by 28.1 percent. Bottled water, soft drinks, and natural juices recorded a rise of 39.2 percent. 

Alcoholic beverages and tobacco prices rose by 35.1 percent annually, with alcoholic drinks up by 16.1 percent and tobacco products increasing by 35.1 percent. 

Clothing and footwear prices increased by 24.4 percent, driven by a 31.9 percent rise in textiles, a 24.9 percent increase in ready-made garments, a 29.9 percent rise in other clothing items, and a 21.1 percent increase in footwear.   

Housing, water, electricity, gas, and fuel costs rose by 20.3 percent. Actual rent prices were up 8.6 percent, housing maintenance costs increased by 16.7 percent, water and miscellaneous housing services rose by 20.5 percent, and electricity, gas, and other fuel prices surged by 44.9 percent.  

The furniture, household equipment, and maintenance sector saw a 24 percent annual increase, driven by a 22.0 percent rise in furniture and carpeting, a 28.2 percent increase in household furnishings, a 28 percent rise in household appliances, a 31.4 percent increase in garden tools and equipment, and a 22.5 percent rise in household maintenance goods and services. 

Healthcare costs jumped 31.3 percent, primarily due to a 40.6 percent increase in medical products and equipment, a 17.8 percent rise in outpatient services, and a 22.1 percent increase in hospital services.  

The transportation sector recorded a 30.2 percent increase, influenced by a 24.5 percent rise in vehicle purchases, a 28.7 percent increase in private transportation expenses, and a 32 percent rise in transportation services.  

Communication services rose by 12.6 percent, with postal services prices soaring by 60 percent, telephone and fax equipment prices increasing by 27.8 percent, and telephone and fax service costs rising by 11.4 percent. 

Topics: Egypt Egypt economy

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Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector

Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector
Updated 10 November 2024
MIGUEL HADCHITY 
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Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector

Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector
Updated 10 November 2024
MIGUEL HADCHITY 

RIYADH: Agreements exceeding SR35.4 billion ($9.42 billion) were signed at Biban 24 in Riyadh, an event organized by the General Authority for Small and Medium Enterprises, also known as Monsha’at

The five-day event, themed “A Global Destination for Opportunities,” attracted over 182,000 visitors, reflecting the Kingdom’s rapid development in the SME sector and entrepreneurship, the Saudi Press Agency reported.

According to Monsha’at Gov. Sami bin Ibrahim Al-Husseini, Biban 24 marked a landmark achievement for Saudi Arabia’s entrepreneurial framework. He highlighted the forum’s record-setting agreements and innovative initiatives, strengthening entrepreneurship within the country. 

Al-Husseini emphasized that these achievements align with Vision 2030’s objectives to boost the SME sector’s contribution to the national gross domestic product. 

“The forum’s success is a testament to the commitment of public and private sector enablers, partners, and sponsors to support SMEs and empower entrepreneurs to launch and grow their ventures,” he said.

Biban 24 featured partnerships with prominent international organizations, including the Estonian Business and Innovation Agency, Bahrain’s Tamkeen Labor Fund, and the Korea Franchise Association, as well as Malaysian SMEs, Korea’s Ministry of SMEs and Startups, Malaysian Franchise Development, Miltton CIO World, Alibaba Cloud, Zoom, and Oracle. 

Several financing agreements were signed with local banks, amounting to over SR15 billion to support Saudi entrepreneurs and SMEs.

The event drew a global crowd of business owners and featured over 300 panels and workshops with over 250 international and local speakers. 

The e-commerce section included 59 service providers and enablers, showcasing emerging technologies, modern retail, and e-commerce solutions. Specialists provided guidance on digital payments, online marketplaces, and supply chains throughout the forum.

Biban Talks, a dedicated stage, hosted over 100 speakers covering diverse topics such as media, tourism, and the environment, as well as education, sports, finance, investment, and the non-profit and financial sectors. 

This interactive platform enabled entrepreneurs to share success stories and discuss the challenges they encountered.

In the Investor Arena, over 115 business owners showcased their projects to potential investors, resulting in preliminary agreements for deals with 65 companies, totaling over SR15 million. 

The event also welcomed more than 1,350 startups from 72 countries worldwide. 

Biban 24 celebrated the graduation of 12 startups from its Real Estate Innovation Accelerator, while also launching a virtual lab to support business owners.

The event brought together over 70 local and international incubators and accelerators to showcase projects and share success stories. The forum also promoted collaboration between entrepreneurs and investors, aiming to build a robust entrepreneurial environment that fosters innovation and economic growth in Saudi Arabia.

Asrar Al-Omiri, CEO of “A’akelha Incubator,” said that Biban 24 was an essential platform for startup hubs and accelerators to spotlight their supported projects. 

She added that A’akelha’s participation through the “360 Platform” virtual incubator aimed to showcase success stories and assist projects in expanding through investment rounds. 

Al-Omiri highlighted the launchpad’s commitment to attracting entrepreneurs and offering an ideal environment for transforming ideas into scalable businesses.

Ghassan Halawa, founder and CEO of Parachute16, affirmed that Biban 24 is the leading event focused on high-growth startups and entrepreneurship. 

Halawa underscored the extensive local and international participation, which allows business incubators to showcase projects and directly engage with investors and key players in the entrepreneurial space.

Lama Ghalayini, business development specialist at VentureTactics Fund, described Biban 24 as a valuable opportunity for fintech startups to enhance their investment prospects. 

She said the forum provides a crucial platform for entrepreneurs to understand the fund’s role in enabling startups to overcome financing challenges through innovative solutions that foster their market growth.

Topics: Biban 24 Saudi Arabia small and medium enterprises (SMEs) General Authority for Small and Medium Enterprises (Monshaat)

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