HOUSTON: Amin Nasser, chief executive of Saudi Aramco, said the oil and gas industry must “push back” against suggestions that oil demand is in long term decline and that Saudi energy assets will be left “stranded” in the ground as alternative energy sources are developed.
In a keynote address at the CERAWeek by IHS Market gathering of top energy experts in Houston, Texas, Nasser also warned that the oil market faces “multiple downside political risks,” and needs $20 trillion of investment over the next 25 years — the size of the American economy.
He was speaking on the 80th anniversary of the discovery of oil in Saudi Arabia, when American geologists found significant reserves of crude in Dhahran, which led to the creation of Saudi Aramco.
“Today I want to be clear about what really lies ahead for our industry, and the actions we must take to secure that future,” he said.
“We must leave people in no doubt that misplaced notions of ‘peak oil demandʼ and ‘stranded resourcesʼ are direct threats to an orderly energy transition and energy security,” he said, adding: “Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.”
On the current oil market, he said market fundamentals were healthy. “Despite recent volatility in the financial markets, the broad-based recovery in the global economy remains on track. It is particularly encouraging to see expectations of stronger economic growth in the emerging and developing world because that is where most oil demand growth is expected to be. Oil demand globally also remains healthy,” he said.
Nasser pointed to flaws in all the various alternatives that have been advocated as future energy sources.
“The hot topic in energy transition is the future role of oil in transport. At the heart of it is the light duty road passenger vehicles segment (cars) that accounts for about 20 percent of global oil demand today. Many wrongly believe that it is a simple matter of electric vehicles quickly and smoothly replacing the internal combustion engine,” he said.
The future for alternatives to the motor car and internal combustion engine was “far more complex,” he said.
“In fact, there are five strong technology horses racing each other to become the powertrain of the future — advanced internal combustion engines; hybrid electric vehicles; plug-in hybrid vehicles; pure battery electric vehicles; and hydrogen fuel cell vehicles. The first three are powered by an internal combustion engine. And let us not forget that more than 99 percent of the passenger vehicles on the road today have an internal combustion engine and will be with us for a long time,” he pointed out.
The transformation of the motor industry was still unclear, Nasser said. “In fact, some of the most disruptive technologies are only just emerging, including highly advanced integrated engine-fuel systems like the ones our researchers are working hard on at Saudi Aramco in collaboration with car and truck engine manufacturers.
“So, given the world’s focus on climate change, there should be a global priority on improving the efficiency and lowering carbon emissions from internal combustion engines as well as fuels, especially when the other two horses in the race — pure battery electric vehicles and hydrogen fuel cell vehicles — still face a range of problems,” he added.
There were other factors that further complicated the search for oil alternatives. “There are also major hurdles before alternatives can be deployed at scale. Affordability is one, as customers continue to place great importance on up-front costs, especially in developing nations. Another is that it will become increasingly difficult for governments to subsidize such enormous numbers, although this is often glossed over,” Nasser said.
“It will require massive infrastructure, which is particularly challenging in developing nations as they are least well-equipped and can least afford this in the face of other economic and social priorities. Yet the majority of vehicle growth will be in those very same nations.”
Analysts estimate that traditional motor car usage accounts for 20 percent of global oil demand, but that figure is complicated by future demographic trends.
“Further adding to the complexity will be the extra two billion people on the planet by 2050, a world economy three times its current size., and a global middle class that will reach five billion by 2030 – with two-thirds of it in Asia driving consumption. These macro factors will only grow demand for road passenger transport,” Nasser said.
“So, yes, battery electric vehicles will grow and have a welcome role to play in global mobility. But given the competition and complexity of the transition, their impact on the 20 percent oil demand should not be exaggerated,” he added.
The rest of the demand side presented great opportunities for oil producers, he said. “In petrochemicals alone, oil use is expected to increase by almost 50 percent, while the number of air passengers each year is expected to almost double to 8 billion over the coming two decades.”
There were also new outlets being developed for Aramco products, he insisted. “For example, Saudi Aramco recently signed an agreement centered on a potential breakthrough technology that will directly convert up to 70 percent of a barrel of crude into petrochemicals.
“This could transform the role of oil as a major petrochemical feedstock, substantially lighten the carbon footprint of oil consumption because of its non-combustible nature, and reduce costs by 30 percent, and become a large and reliable outlet for our future oil production,” he said.
“I also see huge potential in producing advanced materials for use in a wide range of high growth industries. Just imagine a future where skyscrapers, cars (including electric ones!), and even our own pipelines are built with these advanced oil-based materials.
“Looking further ahead, if we combine hydrogen from oil with carbon capture, utilization, and storage then green hydrogen comes within reach – not only for transport but also power and heat,” he added.
Oil and gas will continue to play a major role in a world where all energy sources will be required for the foreseeable future.
But he insisted that the energy industry needed action in four main areas to enable it to face the future:
“First, we need to expand exploration. Last year, only 7 billion barrels equivalent of oil and gas combined were discovered, which is among the lowest on record.
“Second, we must not only meet the growth in oil demand but also offset a large natural decline in developed oil fields. Even conservative estimates suggest about 20 million barrels per day of new capacity is required over the next five years,” Nasser said
“Third, our industry needs more than 20 trillion dollars over the next quarter century to meet rising demand for oil and gas (including in aging infrastructure). That is virtually the size of the US economy, and we have already lost 1 trillion dollars of investments since the downturn.
“This staggering amount will only come if investors are convinced that oil will be allowed to compete on a level playing field, that oil is worth so much more, and that oil is here for the foreseeable future,” he said.
“That is why we must push back on the idea that the world can do without proven and reliable sources. We also need an environment that encourages long-term investments, as we are seeing here in the United States, and in Saudi Arabia with our ambitious Vision 2030,” Nasser added.
Finally, he said, we need to intensify our efforts to both enhance current technologies as well as create new, game-changing ones. That requires us to devote more resources to longer term research, particularly low-to-no carbon products. And it means regulators must be policy holistic and technology agnostic – let the market decide,” he said.
‘Oil and gas will continue to play a major role in the world,’ says Aramco’s Nasser
‘Oil and gas will continue to play a major role in the world,’ says Aramco’s Nasser
Saudi Arabia poised to become Mideast’s Silicon Valley, say experts
RIYADH: Saudi Arabia is rapidly transforming into a regional technology hub, drawing comparisons to Silicon Valley, thanks to a wave of strategic investments and high-profile initiatives, experts have told Arab News.
At the heart of this transformation is Project Transcendence, a groundbreaking $100 billion initiative launched in 2024.
Spearheaded by the Kingdom’s Public Investment Fund in partnership with Google, the project aims to build a comprehensive artificial intelligence ecosystem within Saudi Arabia.
The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms — positioning the Kingdom at the forefront of regional innovation.
Complementing these efforts is the annual LEAP technology conference, which continues to gain international attention. The 2025 edition of the event attracted over 170,000 visitors and secured investments exceeding $14.9 billion, underscoring Saudi Arabia’s growing appeal as a technology and innovation destination.
These developments are central to the Kingdom’s broader economic reform strategy under Vision 2030, which aims to diversify the economy and reduce its longstanding reliance on oil revenues.
With strategic initiatives and strong global partnerships, Saudi Arabia is cementing its place as a key player in the global tech landscape.
Speaking to Arab News, Noor Al-Nahhas, co-founder and CEO of UAE-based software company nybl, said: “Saudi Arabia is rapidly transforming into a global technology hub, driven by Vision 2030’s ambitious agenda. The Kingdom is creating a robust ecosystem for tech startups to thrive while accelerating investments in AI and deep tech — technologies that are critical to furthering the progress of the sector.”
He added: “With the emerging developments we are seeing in the Kingdom, obstacles are few — this is the Silicon Valley of the Middle East and a rising force in the global tech landscape.”
Mamdouh Al-Doubayan, managing director of Globant for the Middle East and North Africa region, also echoed similar views. He said that Saudi Arabia’s investments in the digital infrastructure should be supported with key partnerships to achieve the desired results.
“The Kingdom is making substantial investments in digital infrastructure while fostering an ecosystem that nurtures innovation and entrepreneurship. Key partnerships are pivotal to driving this vision forward,” said Al-Doubayan.
The crucial SME factor
Vikas Panchal, general manager, Middle East, for Indian multinational technology company Tally Solutions, told Arab News that small and medium enterprises in Saudi Arabia have a huge role to play as the Kingdom continues its technological evolution journey.
“Saudi Arabia is rapidly advancing in its digital transformation journey, with SMEs playing a pivotal role in this evolution. The Kingdom’s Vision 2030 has placed technology and digitalization at the forefront of economic diversification, fostering a pro-business environment where SMEs are seen to continuously succeed in,” said Panchal.
He added that government-backed programs like Monsha’at’s SME support initiatives as well as investments in AI, fintech and e-commerce are equipping businesses with scalable digital tools, thus allowing them to compete on a global scale.
“With streamlined business regulations and a growing interest in pursuing tech-driven efficiencies, Saudi Arabia is on track to becoming a global tech hub,” Panchal added.
Homegrown innovation
Amid these advancements, experts also highlighted potential challenges that Saudi Arabia may encounter as it strives to establish itself as a global tech destination.
Al-Doubayan noted that while the Kingdom is making significant progress in digital transformation, addressing certain challenges will be crucial to ensuring sustainable growth.
He pointed out that one of the key obstacles Saudi Arabia may face is building a robust talent pipeline to support the burgeoning tech sector.
“While the Kingdom invests in education and training, attracting and retaining skilled professionals in a competitive global landscape remains critical,” said Al-Doubayan, adding: “Additionally, navigating regulatory frameworks and ensuring a supportive environment for innovation can be complex, especially as the country seeks to balance rapid technological advancement with traditional practices.”
Panchal said that some of the challenges faced by the Kingdom include costs for digital transformation, especially among SMEs in the Kingdom.
“While large corporations are quickly embracing AI and automation, many SMEs still face challenges in transitioning from traditional to digital operations. The lack of expertise in adopting cloud-based financial management, tax automation, and real-time accounting can slow down their competitiveness,” said Panchal.
He added: “For some SMEs, the initial cost of transitioning to fully digital operations can be a challenging feat. By empowering SMEs with affordable, easy-to-use technology solutions, Saudi Arabia can overcome these hurdles and accelerate toward its goal of achieving a truly tech-driven economy.”
Al-Doubayan also expressed similar views and said that some companies are facing the risk of infrastructural limitations, as developing the necessary digital and physical infrastructure to support ambitious projects can be both time-consuming and costly.
Al-Nahhas said that Saudi Arabia should strengthen its AI capabilities to truly achieve its tech ambitions in the future.
“One critical factor to consider is the speed at which the global AI race is evolving. This will be a vital aspect to remain cognizant of as Saudi Arabia pushes forward in pursuit of meeting its Vision 2030 goals,” said the nybl CEO.
He added that Saudi Arabia should try to develop its local ecosystem for technological innovation rather than importing it from other nations.
“A striking example is DeepSeek, which in a short span has developed an AI model capable of rivalling those from Silicon Valley and disrupts the sector in unprecedented ways,” said Al-Nahhas.
DeepSeek, a chatbot developed by China, uses advanced large language models and was first launched on Jan. 10.
Upon its release, it quickly outpaced ChatGPT, becoming the most downloaded freeware app on the iOS App Store in the US.
The impressive performance of DeepSeek, coupled with its relatively low cost, has made waves globally, challenging the dominance of US-based AI models.
Thanks to its Natural Language Processing technologies, DeepSeek is able to understand, interpret, and generate human language more effectively, resulting in a 60 percent reduction in irrelevant search results compared to traditional search engines.
Al-Nahhas added: “This highlights the sheer speed of innovation in the tech sector, but also raises a fundamental question: ‘Why should we import tech when we have the resources and vision to create it in the Kingdom?’ To truly lead, Saudi Arabia must double down on homegrown innovation — over-reliance on external solutions risks dependency and could slow progress.”
During the recent LEAP conference, held in Riyadh from Feb. 9 to Feb. 12, Saudi Minister of Communications and Information Technology Abdullah Al-Swaha also talked about DeepSeek and said that it is beating all AI models.
“We have to celebrate the ChatGPT moment of 2022, but we also have to appreciate the DeepSeek moment. The world does not need polarization in the intelligent age. We need to work collectively to celebrate these advancements, where DeepSeek so far is beating all AI models,” the minister said.
Al-Nahhas added that Saudi Arabia has a massive opportunity to set global benchmarks by developing AI and deep tech in-house, and can ensure that technology is not just made for the Kingdom, but can be exported worldwide, contributing to the growth of the country’s economy.
“Competing on the global stage requires a mindset shift: Saudi Arabia is not just a consumer of technology, we are creators, driving the next wave of innovation from the Kingdom to the world,” said Al-Nahhas.
Dhruv Verma, founder and CEO of Thriwe, a tech-driven benefits as a platform company which expanded its presence to Saudi Arabia in 2023, said that stringent data protection laws may pose hurdles for foreign tech companies, making long-term private sector engagement vital for sustainable growth.
“As digitalization accelerates, the risk of cyber threats and data breaches increases, emphasizing the need for robust cybersecurity measures and cross-border collaborations,” said Verma.
Arun Bruce, CEO of Dubai-based management consultancy firm TransformationX, told Arab News that Saudi Arabia should strengthen its startup ecosystem to ensure that the technology sector will thrive long term.
He also echoed the views of Al-Nahhas that the Kingdom should avoid over-dependence on international technologies, and should develop advanced innovations locally.
“The tech startup scene in KSA is certainly strengthening — with multiple accelerators and government initiatives — but still has some way to go as it competes with global and regional startup hubs,” said Bruce.
He added: “As Saudi Arabia seeks to grow, localizing its tech inputs becomes important. Companies like PIF-backed ALAT are certainly taking the Kingdom in the right direction.”
How Saudi entrepreneurs are navigating the shift to public markets
RIYADH: As startups approach the critical stage of an initial public offering, one of their biggest challenges is the transition from a fast-paced, founder-driven company to one that must meet the rigorous demands of public markets.
This shift often requires a fundamental change in mindset — particularly in areas such as governance, financial discipline, and regulatory compliance.
The journey from a nimble startup to a publicly traded company is a transformative one, and it is a challenge many companies in Saudi Arabia’s rapidly evolving startup ecosystem will soon face.
Historically, strategic acquisitions were the primary exit strategy for startups seeking liquidity. However, with an increasing number of late-stage companies reaching scale, IPOs are rapidly emerging as a viable — and increasingly attractive — option.
As the Kingdom’s entrepreneurial landscape matures, the path to public markets is becoming a more prominent choice for startups looking to grow beyond their founding teams and tap into the capital needed to expand.
“Many startups struggle in this arena because what worked in their early years — fast decisions, aggressive growth, and loose structures — won’t hold up under public scrutiny,” said Mohammed Al-Meshekah, founder and general partner of Outliers, an early investor in Saudi Arabia’s Tabby, now valued at $3.3 billion and on track for an IPO.
Speaking to Arab News, Al-Meshekah said that “the right investors work with founders to institutionalize their company without killing its agility.”
He added: “This means tightening financial discipline early, not as a last-minute fix, ensuring reporting is clean, unit economics are sustainable, and capital allocation is intentional.”
Mohammed Al-Zubi, managing partner and founder of Nama Ventures, which backed Saudi unicorns Salla and Tamara — both preparing for public listings — echoed this sentiment, saying that the best approach is to build with IPO-level governance long before it becomes necessary.
“This means structuring financial reporting properly, ensuring compliance frameworks are in place, and building a leadership team that can transition into a public company environment,” Al-Zubi told Arab News.
Regulatory hurdle
Regulatory compliance is another hurdle, particularly in regions where high-growth technology startups must navigate frameworks originally designed for traditional industries.
“At the same time, there’s an opportunity to evolve regulatory frameworks in the region to better support high-growth companies,” Outliers’ Al-Meshekah said.
“Many existing standards were designed with traditional industries in mind, which naturally differ from the structure and scaling needs of technology-driven businesses,” he added, noting that regulators must strike a balance between ensuring market stability and enabling companies with global potential to list locally.
“Striking this balance could position Saudi Arabia and the region more broadly as a leading destination for high-growth IPOs, attracting not just companies built in the region but those from around the world looking for a strong public market to scale.”
Investor alignment also plays a key role in a smooth IPO transition. “Startups that have investors who prioritize short-term gains over sustainable growth often face challenges when transitioning to public markets,” Al-Zubi said.
“Those backed by long-term partners who guide them toward disciplined execution, regulatory readiness, and scalable operations are the ones that make the leap successfully.”
IPO as the new exit strategy
Al-Zubi said that just five years ago, IPOs were not considered a viable exit path for startups in the region — with strategic acquisitions seen as the only clear exit strategy.
“While acquisitions provided liquidity, they often left a lot of money on the table because startups were being acquired before realizing their full potential,” he said.
Today, Al-Zubi noted, the dynamics are changing. “IPOs are now the dominant exit strategy, and we’re seeing more late-stage startups actively preparing for public markets. Companies like Tamara and Salla are proof that regional startups can scale to IPO readiness, and as capital markets continue to evolve, this trend will accelerate.”
However, acquisitions and secondary sales will continue to play a role, particularly in industries where global players are looking for entry points into the Saudi market.
“With IPOs now a real option, founders are no longer forced to sell prematurely,” Al-Zubi added. “Instead, they can scale further, capture more value, and exit at a much higher valuation through public markets.”
Al-Meshekah agreed that IPOs will become an increasingly important part of the exit landscape but noted that they will complement acquisitions or secondary sales, not fully replace them.
“As more Saudi startups mature, we’ll see a broader mix of exit strategies, with IPOs becoming a key path for companies that can sustain independent growth. But the best companies aren’t built for a single outcome; they create lasting value with optionality, whether through an IPO, acquisition, or secondaries,” he added, pointing to historical trends in the US to illustrate how dynamics evolve in maturing ecosystems.
“If we look to the US as a reference point, IPOs once dominated venture-backed exits, accounting for over 80 percent in the 1980s, before dropping to 50 percent in the 1990s and falling below 10 percent in the past 25 years,” he said.
“It’s natural for IPOs to lead in a developing ecosystem, with M&A following as incumbents acquire innovation to stay competitive.”
Role of investors post-IPO
While going public is a significant milestone for any startup, it marks the beginning of a new phase rather than the end of the journey.
The transition from a venture-backed private company to a publicly traded entity brings new challenges, requiring founders to shift their focus from high-growth execution to long-term financial discipline and shareholder management.
“Going public isn’t the finish line. It’s just another phase of a company’s evolution,” Al-Meshekah said.
“The role of investors at this point shifts to long-term stewards, helping ensure a successful transition into the public markets without losing what made them great in the first place.”
He warned that one of the biggest risks post-IPO is “short-termism” — the pressure to prioritize quarterly performance over long-term value creation.
“Early-stage VCs who’ve been with the company since its inception play a key role in keeping the leadership grounded in its original vision while adapting to the new expectations of public shareholders,” Al-Meshekah said.
He added that the best companies “balance financial discipline with the agility to innovate, resisting the urge to optimize for near-term stock price movements at the expense of long-term market leadership.”
Al-Zubi highlighted how the investor base also changes once a company reaches public markets.
“Every stage of a startup’s journey requires a different set of investors with specialized expertise,” he said.
“Early-stage VCs play a critical role in getting a company from idea to scale, but once a startup reaches the public markets, the baton must be passed to public equity investors and institutional funds that are better suited for this phase.”
At this stage, a startup is no longer judged solely on its growth potential but also on its ability to deliver sustainable profitability, shareholder value and robust governance.
“Early-stage VCs, whose expertise lies in navigating uncertainty and scaling startups, must step back and allow the company to be guided by those with deep public market experience,” said Al-Zubi.
That doesn’t mean early investors disappear entirely. “Some remain involved through board positions, but their influence naturally diminishes as new stakeholders, financial structures, and operational expectations take priority,” he explained.
Al-Zubi emphasized that founders must embrace this transition and surround themselves with the right advisers.
“IPOs are not just exits — they’re a shift to a new way of operating, and founders who understand this transition will be the ones who thrive in the public markets.”
Al-Meshekah echoed this sentiment, noting that successful tech IPOs share common traits.
“They don’t just scale their existing product; they expand into new markets, deepen customer relationships, and build sustainable competitive moats,” he said.
“Early investors who stay engaged can provide continuity, supporting founders as they navigate this shift while maintaining the principles that drove their early success.”
IMF warns of economic slowdown, but rules out global recession
WASHINGTON: Rising trade tensions and sweeping shifts in the global trading system will trigger downward revisions of the IMF’s economic forecasts but no global recession is expected, the lender’s managing director said on Thursday.
Kristalina Georgieva said countries’ economies were being tested by a reboot of the global trading system — sparked in recent months by US tariffs and retaliation by China and the EU — that had unleashed “off the charts” uncertainty in trade policy and extreme volatility in financial markets.
“Disruptions entail costs ... our new growth projections will include notable markdowns but not recession,” she said in prepared remarks, adding the outlook would also include higher inflation forecasts for some countries.
“To quote from the ‘Wizard of Oz,’ we’re not in Kansas anymore,” Georgieva told IMF staff and reporters at the IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week.
Elevated uncertainty also raised the risk of financial market stress, Georgieva said, noting that recent movements in US Treasury yield curves should be taken as a warning. “Everyone suffers if financial conditions worsen,” she said.
US President Donald Trump has upended the global trading system with a tsunami of new tariffs, including a 10 percent US duty on goods from all countries and higher rates for some, although those have been paused for 90 days to allow negotiations. China, the EU and other countries have announced retaliatory measures.
The IIMF in January forecast global growth of 3.3 percent in 2025 and 3.3 percent in 2026. It will release an updated World Economic Outlook on Tuesday.
Georgieva, speaking at IMF headquarters in Washington ahead of the spring meetings of the IMF and World Bank next week, gave no details about the expected revisions, but warned that prolonged uncertainty would be costly and said the consequences of the trade reboot would be “significant.”
Georgieva said trade tensions had been bubbling for some time, but were now boiling over, and urged countries to respond wisely to the “sudden and sweeping shifts” seen in tariffs, driving the US effective tariff rate to levels last seen several lifetimes ago and resulting in response by other countries.
“As the giants face off, smaller countries are caught in the cross currents,” Georgieva said. China, the EU and the US were the world’s three largest importers, which meant big spillovers for smaller countries that were more exposed to tighter financial conditions, she said.
Rising tariffs hit growth upfront, she said, noting that past evidence showed that higher tariff rates were paid by importers through lower profits and consumers through higher costs.
In big economies, they could also create incentives for new inward investment, creating new jobs, but this took time.
“Protectionism erodes productivity over the long run, especially in smaller economies,” she said, warning that moves to shield industry from competition also undercut entrepreneurship and hurt innovation.
Georgieva urge countries to continue economic and financial reforms while maintaining agile and credible monetary policy, as well as strong financial market regulation and supervision.
Emerging market economies should preserve their exchange rate flexibility, and donor countries should better protect aid flows to vulnerable low-income countries, she added.
Georgieva also called for cooperation in an increasingly multi-polar world, and urged the largest economies to reach a trade settlement that preserved openness and restarted a global trend toward lower tariff rates and reduced non-tariff barriers.
“We need a more resilient world economy, not a drift to division,” she said. “All countries, large and small alike, can and should play their part to strengthen the global economy in an era of more frequent and severe shocks.”
Libyans grapple with fresh currency devaluation
- Libyans are facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar
- Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict since 2011
TRIPOLI: Already worn down by years of political turmoil and economic hardships, Libyans are now facing a sharp deterioration in their purchasing power after a sudden devaluation of the Libyan dinar.
Experts have said the national currency’s exchange rate decline came as a consequence of ballooning public expenditures by the country’s rival governments in recent years.
Libya has Africa’s most abundant hydrocarbon reserves, but it is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Muammar Qaddafi.
It is currently divided between a UN-recognized government in the capital Tripoli and a rival administration in the east backed by general Khalifa Haftar, with the division exacerbating the country’s economic woes.
The Libyan central bank earlier this month devalued the dinar by 13.3 percent, the second such move in five years.
The exchange rate went up to 5.56 dinars to the US dollar from 4.48 — while on the black market it jumped to 7.80 dinars to the US dollar from 6.90.
It has become hard to keep up with our needs for food, medicine, transportation, education and bills
Karim Achraf, Libyan engineer
The impact was immediate, with small business owners and wholesale traders, who rely heavily on the parallel market to obtain foreign currency for imports, seeing their costs surge.
“The currency keeps going down,” said Karim Achraf, a 27-year-old engineer and father of three living in the capital, Tripoli.
“It has become hard to keep up with our needs for food, medicine, transportation, education and bills,” he said.
“We can’t trust our governments with our economy and safety.”
Political deadlock
Despite its vast oil reserves, output remains below pre-2011 levels and the country lacks a robust industrial and agricultural sector.
It is almost entirely dependent on imported food, medical supplies and consumer goods, with oil exports its main source of revenue.
The United Nations Support Mission in Libya (UNSMIL) has expressed alarm following the sudden devaluation, urging both administrations to take “urgent measures to stabilize the national economy.”
“Swift action is essential to reduce the negative impact on the Libyan people, including rising costs of living, declining purchasing power and the erosion of public trust in state institutions and leaders,” it said in a statement.
In Tripoli, dozens of protesters recently gathered outside the central bank headquarters to voice their anger.
Libya's central bank was forced to make the decision to protect what remained of the dinar’s strength
Mahmoud El-Tijani, an economist
But while much of the criticism has been aimed at the bank, some believe it is unfairly blamed for problems stemming from political deadlock and fiscal mismanagement.
Mahmoud El-Tijani, a Libyan economist, said the central bank was “a victim of the executive branch’s failure and division.”
He said it was “forced to make the decision to protect what remained of the dinar’s strength.”
Amid falling oil revenues, the devaluation of the dinar was used as a “last-chance measure to avoid bankruptcy and external debt,” he added.
Libya’s institutions, including its central bank, have for a decade found themselves caught between the rival governments.
Until 2023, the bank was split in two, with an internationally recognized headquarters in the capital and another in the east, with each printing bills signed off by their respective governors.
Last year, the then-governor of the bank fled amid violent tensions surrounding the institution, with the United Nations stepping in to broker a deal for a new governor to be appointed.
Central bank
Jalel Harchaoui, a senior fellow at the London-based Royal United Services Institute, said the central bank was “simply confronting the inevitable consequences of the political choices made by Libya’s ruling factions.”
“These enormous expenditures are highly political, arbitrary, and unsustainable,” he said.
“They are not decided by the central bank, which is a technocratic institution without the military or sociopolitical clout of Libya’s leaders.”
“Blaming the central bank is pure populism,” Harchaoui added, describing the bank as “a scapegoat.”
Anwar Al-Turki, a banker in Tripoli, said the central bank was being “mistreated” by political leaders who had authorized “the highest public spending in modern Libyan history.”
He said the decision makers had little regard for “good governance, financial compliance, or anti-corruption.”
Closing Bell: Saudi main index closes in red at 11,502
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 81.44 points, or 0.7 percent, to close at 11,552.98.
The total trading turnover of the benchmark index was SR4.72 billion ($1.25 billion), as 44 stocks advanced, while only 202 retreated.
The MSCI Tadawul Index decreased by 10.51 points, or 0.71 percent, to close at 1,469.39.
The Kingdom’s parallel market, Nomu, dipped, losing 369.85 points, or 1.27 percent, to close at 28,713.72. This comes as 29 stocks advanced while 60 retreated.
This aligns with a dip in global stock markets with the ongoing worldwide trade war following US President Donald Trump’s reciprocal tariffs introduced earlier this month.
For instance, the Nasdaq index dipped 3.07 percent in the trading session on April 16, closing at 16,307.16, losing 516.01 points.
The best-performing stock was Alistithmar AREIC Diversified REIT Fund with its share price surging by 10 percent to SR6.60.
Other top performers included Dar Alarkan Real Estate Development Co., which saw its share price rise by 3.82 percent to SR22.84, and Allied Cooperative Insurance Group, which saw a 3.44 percent increase to SR16.22.
Al Mawarid Manpower Co. and Jabal Omar Development Co. also saw increases in today’s trading session, with their share prices advancing by 2.10 percent and 1.82 percent to SR145.60 and SR23.52, respectively.
The day’s worst performer was Al-Baha Investment and Development Co., whose share price fell 5.74 percent to SR3.12.
Middle East Specialized Cables Co. and Lazurde Co. for Jewelry also saw declines, with their shares dropping by 4.83 percent each to SR35.50 and SR13.40, respectively.
The top four and five worst performers were Raoom Trading Co. and Saudi Printing and Packaging Co., whose share prices dipped by 4.48 percent and 4.36 percent to SR78.90 and SR10.52, respectively.
