As visitors stay home, Iraqi Kurdistan tourism collapses

A cafe in Shaqlawah. A curfew has starved the Kurdish region of tourists. (AFP)
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Updated 27 June 2020
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As visitors stay home, Iraqi Kurdistan tourism collapses

  • Last year, about 200,000 tourists visited Al-Amadiyah alone
  • Nobody came this year because of the coronavirus crisis

AL-AHMADIYA, Iraq: In a normal year, Ahmed Hazem’s mountainside restaurant would be teeming with tourists. But a nationwide curfew aimed at combating the coronavirus has starved Iraq’s Kurdish region of visitors.

“Everything is empty. With the roads cut, not a single tourist can even get here,” said Hazem, whose restaurant is a collection of red tables and chairs on terraces cut out of the mountainside.

The tables now stand empty in the early summer sun among the babbling rivulets of spring water that normally draw the tourists.

The nearby town of Al-Amadiyah lies in a mountainous district of the autonomous Kurdish region’s Dohuk province, which borders Turkey and Syria. This would normally be high season, with families escaping the heat of the plains to enjoy the milder weather of the northern mountains. They rent chalets or small apartments, dip into natural lakes and streams and flock to restaurants or hold their own barbecues at campsites and picnic spots.

Last year, about 200,000 tourists visited Al-Amadiyah alone, the town’s tourist chief Nazif Mohammed Ali said. But this year “no one came,” Ali lamented.

In mid-March, as the tourist season was getting under way up in Iraqi Kurdistan, the region’s three provinces announced a strict lockdown to prevent the spread of the coronavirus. One of them, Sulaimaniyah, had registered Iraq’s first coronavirus-linked death just weeks before.

Border crossings with Syria, Turkey and Iran were sealed off. Hotels and restaurants shuttered their doors and people were instructed to avoid gatherings.

The rest of Iraq soon followed suit, meaning the expected 1.7 million visitors — most of them Iraqis from the south but also including some foreign tourists — did not show up. The shutdown brought the private sector to its knees across Iraq, but the Kurdish region’s tourist sector has been particularly hard hit.

The Kurdistan Region’s Restaurant and Hotel Owners League counts 868 hotels and other lodgings that employ 8,500 people. “Their occupancy rate is zero,” the league has said. Even when restaurants do reopen, “they will only be half full” if routes from the south are still closed to would-be visitors, predicted the league’s deputy head Shaker Aziz.

The coronavirus figures have since steadily crept up with confirmed infections topping 37,000 and 1,400 deaths.

Over the past two decades, Kurdistan’s economy had been heavily reliant on the oil and gas sector, which has driven the region’s development. Authorities have been trying to diversify but the collapse of world oil prices has dealt a heavy blow.

The tourism sector formed a key part of the diversification plans, injecting about $1.5 billion into the Kurdish economy last year, said Nader Rusti, spokesman for the region’s tourism office.

The loss of most if not all of that spending comes on top of a deepening fiscal crisis that has left the public sector reeling. The regional government has failed to pay public sector workers for several months, sparking protests in cities across Kurdistan.

It also owes months of payments to international companies extracting oil and gas from the region. And it will have to cut production by 23 percent to comply with an agreement hashed out by members of the OPEC oil cartel in April to reduce excess supply to the market in a bid to shore up prices.

The region’s prime minister, Masrour Barzani, recently announced that his government was $27 billion in debt, after it was forced to take out more loans to honor its immediate obligations.

It had hoped for some economic relief from talks with the federal government over longstanding budget and oil issues.

But Baghdad is facing a similar fiscal crisis as a result of the sharp fall in oil revenues and the collapse of religious tourism, the second-largest contributor to Iraq’s economy.

So for Hazem and other stricken restaurateurs and hoteliers across the Kurdish mountains, there is no prospect of state help, as the two governments struggle to keep afloat.


Developing nations push for action on COP29 financing shortfalls

Updated 19 November 2024
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Developing nations push for action on COP29 financing shortfalls

RIYADH: Developed nations are facing growing pressure at COP29 to honor their climate finance commitments, as developing countries push for action to address the severe shortfalls in adaptation funding and the escalating environmental challenges they face.

The ongoing dispute centers around how much support developed nations will provide to poorer countries in their efforts to combat the impacts of climate change.

Representatives from vulnerable nations have emphasized the urgent need for concrete financial commitments, highlighting the widening gaps in adaptation funding.

Financing gaps undermine efforts

Kenya called for an end to the adaptation finance gap, urging increased financial flows to meet the continent’s needs. “Developing countries are not receiving the resources they need,” said Kenya’s representative. “Africa’s adaptation needs are the highest globally, estimated at $845 billion between 2020 and 2035, yet we receive less than a quarter of that annually.”

Bangladesh echoed these concerns, revealing a stark $5.5 billion annual shortfall in funding for resilience projects. “This gap must be filled through grant-based and external finance,” said Bangladesh’s representative.

Several developed nations have outlined their efforts to scale up adaptation financing. Germany highlighted that 30 percent of the EU’s current seven-year budget is allocated to climate-related initiatives, including $30 billion for nationally determined contributions and climate goals, and $12 billion for public climate adaptation finance.

France pledged €2 billion annually by 2025 for adaptation in developing countries, exceeding its previous commitments. Canada reported progress toward its goal of doubling adaptation finance by 2025, as per the Glasgow Climate Pact, but acknowledged the need for more expansive action. “Public finance alone won’t suffice,” said Canada’s representative. “We need coordinated global efforts, innovative instruments, and stronger policy signals to ramp up climate-resilient investments,” the representative continued.

UAE calls for scaling up adaptation finance

“The outcome of the first global stocktake under the UAE consensus underscores a stark reality: we are not on track to meet the adaptation needs of developing countries,” said the UAE’s representative. “Climate change disproportionately affects vulnerable communities who have contributed the least to global emissions. Adaptation is not a choice, but a necessity,” he continued.

The UAE underscored the widening adaptation finance gap, which is estimated to reach hundreds of billions of dollars annually by 2030.

“A critical component of COP28 was the UAE framework for global climate resilience, establishing targets for adaptation planning and implementation,” the representative noted. The UAE consensus calls for all parties to have national adaptation plans in place by 2025, with tangible progress on implementation by 2030.

“We urge developed countries to significantly scale up adaptation finance beyond the doubling committed at COP26,” the UAE added.

“This scaling up is crucial to meet the urgent and growing needs of developing countries.”

Rejecting allegations of involvement in the Sudanese conflict, the UAE reaffirmed its commitment to humanitarian aid and efforts to support a legitimate, civilian-led government in Sudan.

“We reject these baseless claims and emphasize our continued support for de-escalation, ceasefires, and aiding Sudanese civilians,” said the representative.

Jordan called for “predictable and transparent commitments” and expedited disbursements, emphasizing the challenges faced by water-scarce nations grappling with severe droughts.

Sudan urged for technological transfer and funding to recover from devastating floods, which caused $48 million in damages this year. Palestine raised concerns about barriers to accessing climate funds, citing “non-technical issues” that prevent direct support despite eligibility.

Kazakhstan stressed the importance of concessional financing, saying, “We need mechanisms that are accessible and predictable to address vulnerabilities and ensure funds flow directly to communities.”

Developing countries call for urgent action

“Adaptation is not a choice but a necessity,” reiterated the UAE representative, highlighting the disproportionate burden borne by vulnerable nations.

Qatar called for creative solutions to close the adaptation finance gap, urging developed countries to double financial support and focus on the implementation phases to maximize impact.

China demanded that developed countries clarify timelines for doubling adaptation financing, stating, “They must deliver on their commitments and prioritize vulnerable nations.”

As COP29 unfolds, the debate over adaptation financing underscores the urgent need to bridge the gap between pledges and tangible action. The world’s most vulnerable communities are watching closely, demanding that words translate into real solutions.


GAMI showcases achievements at maritime forum in Dhahran

Updated 19 November 2024
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GAMI showcases achievements at maritime forum in Dhahran

RIYADH: Saudi Arabia’s General Authority for Military Industries highlighted its achievements in local military ship and boat manufacturing, as well as maintenance capabilities, at the 3rd International Saudi Maritime Forum.

In a press statement, GAMI noted that its pavilion also showcased specialized expertise in hull construction and system integration. Established in 2017, GAMI is tasked with regulating, monitoring, enabling, and licensing the Kingdom's military and security industries.

As part of its mission to strengthen the defense sector, GAMI aims to support the growth of Saudi Arabia's military industries and contribute to the country's economic development. The authority also plays a key role in achieving Saudi Vision 2030 by aiming to localize more than 50 percent of government defense spending by 2030.

The GAMI pavilion, inaugurated by Abdullah bin Abdulaziz Al-Hammad, GAMI’s deputy governor for strategic planning and execution, was presented to over 55 national and international organizations from 22 countries, including military specialists and academics from both Saudi Arabia and abroad.

The 3rd Saudi International Maritime Forum, organized by the Royal Saudi Naval Forces, kicked off on Nov. 19 in Dhahran and will run through Nov. 21.

The forum is focusing on key developments in regional and international maritime security, while also highlighting the latest technologies, equipment, and maritime systems at both local and global levels.

 


Saudi Arabia pledges support in combating global financial crimes

Updated 19 November 2024
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Saudi Arabia pledges support in combating global financial crimes

RIYADH: The global fight against money laundering, terrorism financing, and the proliferation of arms remains a pressing issue, as Saudi Arabia’s central bank governor emphasized the need for international collaboration to address these challenges.

Ayman Al-Sayari, governor of the Saudi Central Bank, reiterated the Kingdom’s commitment to advancing these efforts, stating, “We affirm Saudi Arabia’s keenness to unify joint regional efforts in combating money laundering, financing terrorism and the proliferation of arms, and overcoming the challenges facing all countries.”

His comments came during the conference on “The Latest Developments in Combating Money Laundering, Financing Terrorism, and the Proliferation of Arms,” held on the sidelines of the 39th General Meeting of the Middle East and North Africa Financial Action Task Force in Riyadh.

Marking the 20th anniversary of MENAFATF’s establishment, Al-Sayari highlighted its role in raising awareness and supporting regional adherence to international standards. “Today we celebrate the 20th anniversary of the establishment of the MENAFATF group, which has contributed to raising awareness, deepening understanding of international requirements at the regional level, and helping relevant authorities enhance their commitment to these requirements,” he said.

Al-Sayari also praised Saudi Arabia’s domestic initiatives aimed at strengthening compliance and combating financial crimes.

“We commend the efforts of the relevant authorities in Saudi Arabia through standing committees to enhance efforts and raise commitment to international requirements,” he added.

According to a UN report, an estimated 2 to 5 percent of global gross domestic product—equivalent to $800 billion to $2 trillion—is laundered each year. However, the clandestine nature of money laundering makes it difficult to determine the exact volume of illicit funds in circulation.

Acknowledging the evolving nature of financial crimes, Al-Sayari emphasized the need for proactive legislative and regulatory measures. “In light of the rapid development of money laundering, terrorism financing, and arms proliferation methods, countries must strengthen their legislative and regulatory frameworks to keep pace with these fast-evolving challenges,” he said.

Al-Sayari also affirmed Saudi Arabia’s alignment with the Financial Action Task Force under Mexico’s presidency, reinforcing the Kingdom’s support for global efforts to combat illicit financial flows. “Saudi Arabia participates actively in the FATF’s discussions to ensure that cross-border transfers are more efficient, transparent, and comprehensive without compromising due diligence obligations and measures,” he added.

Elisa Madrazo, president of the FATF, also addressed the conference, highlighting the importance of coordinated global efforts to combat financial crimes. Her remarks underscored FATF’s ongoing commitment to fostering collaboration among member countries and ensuring adherence to international standards.

During the conference, Al-Sayari met with Madrazo to discuss recent developments and shared interests in anti-money laundering efforts, combating terrorist financing, and addressing the financing of arms proliferation.


Aramco signs agreement to advance SASREF expansion

Updated 19 November 2024
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Aramco signs agreement to advance SASREF expansion

RIYADH: Energy giant Saudi Aramco and China-based Rongsheng Petrochemical Co. have signed a framework agreement to boost the expansion of a subsidiary of the state-owned oil company.

According to a press statement, the tripartite agreement outlines a cooperation framework and detailed plans to design and develop Saudi Aramco Jubail Refinery Co. or SASREF. The initiative is expected to enhance SASREF’s refining and petrochemical capabilities.

The deal follows an announcement made in April that Aramco and Rongsheng Petrochemical had signed a partnership agreement related to the planned formation of a joint venture in SASREF. 

Aramco’s long-standing relationship with China spans more than three decades.

This new framework agreement is part of the company’s broader strategy to solidify its position in the global energy landscape while supporting the Kingdom’s economic growth.

“By aligning our efforts, Aramco and Rongsheng Petrochemical aim to deliver additional value to our stakeholders,” said Aramco Downstream President Mohammed Al-Qahtani.

He added: “This development framework agreement underscores Aramco’s intentions to foster closer collaboration with key partners and progressing its strategic downstream expansion, both in Saudi Arabia and internationally. It also highlights the potential of the Kingdom’s downstream sector to attract overseas players.”

Li Shuirong, chairman of Rongsheng Petrochemical, said that the collaborative project will contribute to Saudi Arabia’s Vision 2030 program and China’s Belt and Road initiative. 

“The signing of the development framework agreement sets the stage for Rongsheng Petrochemical’s in-depth participation in the SASREF expansion project,” said Shuirong. 

He added: “Saudi Arabia has abundant energy resources and significant market potential, and Rongsheng Petrochemical will bring strong momentum to the partnership through our excellent operation and management capabilities and market competitiveness.” 

The SASREF expansion project is located in Jubail Industrial City along the Arabian Gulf coast in the Kingdom’s Eastern Province. 

The project, which is currently in the pre-front-end engineering design stage, envisages the construction of large-scale steam crackers and the integration of associated downstream derivatives into the existing SASREF complex, enhancing its ability to meet the growing demand for high-quality petrochemical products, the statement added. 

Earlier in November, Aramco, in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co., started the construction of a refinery and petrochemical complex in the Asian nation’s Fujian province. 

The undertaking, which is expected to be fully operational by the end of 2030, includes an oil refinery with a capacity of 320,000 barrels per day, according to a press statement.

It will also have a 1.5 million tonnes-per-year ethylene unit, a 2 million tonnes paraxylene and downstream derivatives capacity, and a 300,000 tonnes crude oil terminal.


COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

Updated 19 November 2024
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COP29: Azerbaijan unveils Baku Harmoniya Climate Initiative

RIYADH: Azerbaijan has launched the Baku Harmoniya Climate Initiative, a program designed to help farmers combat global warming while ensuring food security.  

The initiative, which prioritizes knowledge sharing and climate finance solutions, was announced during a press conference by Azerbaijan’s Minister of Agriculture, Majnun Mammadov, at COP29. 

This effort aligns with Azerbaijan’s revised Nationally Determined Contributions, which pledge a 40 percent reduction in emissions by 2050, conditional on international support. The energy sector, responsible for over half of the country’s greenhouse gas emissions, remains a focal point of Azerbaijan’s climate strategy.   

“I am proud to officially announce the launch of the Baku Harmonia Climate Initiative for farmers. It is an inclusive platform designed particularly for women and youth, and aims to strengthen global collaboration,” Mammadov said. 

He highlighted that the initiative will focus on promoting technology investments, sustainable practices, and crop diversification. 

“Harmonia focuses on sharing knowledge, facilitating climate finance, and addressing the unique challenges farmers face,” he added.  

Mammadov emphasized the importance of enhancing farmers’ participation, advancing research and innovation, improving water management systems, and implementing subsidy programs to encourage sustainability. 

Also speaking during the conference, COP29 Lead Negotiator Yalchin Rafiyev underlined the initiative’s significance, noting the momentum gained from international cooperation.  

“We have been encouraged by the positive signals from the G20 to our ongoing efforts,” Rafiyev said. However, he stressed that current climate finance levels remain insufficient and require scaling up.  

As a significant producer of fossil fuels, Azerbaijan’s hosting of COP29, like last year’s host, the UAE, signifies a shift toward sustainable climate policies.  

COP29 President Mukhtar Babayev recently told Arab News that hosting the conference reflects his country’s commitment to driving change.