Bus-sized sinkholes appearing in Turkey threaten harvest

An aerial view of a sinkhole in Konya. Sinkholes dot the drought-stricken breadbasket of the Turkish plains, worrying farmers as they multiply. (AFP)
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Updated 22 April 2021
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Bus-sized sinkholes appearing in Turkey threaten harvest

  • Sinkholes appear in drough-stricken region

KARAPINAR: Sinkholes wide enough to swallow a bus dot the drought-stricken breadbasket of the Turkish plains, worrying farmers as they spread and creep closer to residential homes.
“The drought situation is getting worse,” said farmer Tahsin Gundogdu, whose harvest includes potatoes he sells to the US food giant PepsiCo.
The 57-year-old has seen the huge holes yawn open in the past 10 to 15 years as the overuse of groundwater for irrigation takes its toll.
Dizzyingly deep, they appear when underground caverns created by drought can no longer contain the weight of the layer of soil above.
This puts farmers in a bind.
Attempts to get water by other means are more expensive, cutting farmers’ incomes. But continued reliance on groundwater will likely make the problem only worse.
Professor Fetullah Arik has counted around 600 sinkholes in the Konya plain, where he heads the Sinkhole Research Center at the Konya Technical University — nearly double the 350 counted last year.
Experts want the government to do more to address extreme drought, blaming the lack of a proper water management policy for Turkey’s woes.
Trying to cut groundwater use, farmers have been forced to water their fields more, leading to higher electricity bills.
“We usually would water the land twice a year but now we’re doing it five or six times,” said Hazim Sezer, a 57-year-old farmer in Karapinar.
But Gundogdu said some farmers still turn to illegally using groundwater for their crops.
If not addressed, drought will hurt farmers and consumers “as much as, if not worse” than the economic shock of the coronavirus pandemic, said Baki Remzi Suicmez, head of Turkey’s Chamber of Agricultural Engineers (ZMO).
“Until last year, we had never seen drought like this,” farmer Kamil Isikli agreed, adding he was more optimistic for 2021 after rain fell earlier this year.
“Farmers no longer have enough money from one month to the next to pay their bills,” Isikli said. “They can’t afford anything anymore.”
Sezer urged the government to create underground systems that redirect water to the plains that would otherwise end up in the seas.
Murat Akbulut, head of ZMO’s Konya branch, said this could offer a “significant solution” for Konya, whose Beysehir Lake has seen its water reserves shrink to 123 million tons from 450 million tons in 2020.
This drop “will lead to real irrigation issues for the plain,” Akbulut said.
Nearly 77 percent of Turkey’s water is consumed by the agricultural sector, Suicmez told AFP.
Turkey is actually facing two types of drought.
The first is meteorological, due to dry weather, and the second is hydrological, which means water levels are low in streams, reservoirs and groundwater levels.
President Recep Tayyip Erdogan hosted his first water forum last month, promising to “renew and improve the agricultural irrigation systems.”
Suicmez said a lot depended on the weather in April and May, because “if there isn’t enough rain in those months, in nearly all areas where there is dry farming, the risk of agricultural drought will continue.”
But even abundant spring rain will not make the problem go away, Suicmez warned.
This winter also saw fears over low water levels in dams, although Agriculture Minister Bekir Pakdemirli insisted last month the problem had been solved by rainfall.
He also suggested Turkey was primarily suffering from the effects of rising temperatures and climate change.
But Suicmez said while this was true, it was “not right” to blame everything on global events.
“We cannot say: ‘Oh there’s climate change, that’s why there’s drought’, when there are concrete reasons for it,” Suicmez said.
The drought’s impact is felt especially severely in the lakes region of Turkey’s southwest, geology engineer Servet Cevni said.
Experts warn Salda Lake, which NASA believes could provide clues to a crater on Mars it has just started exploring with the Perseverence rover, is also suffering.
Described as “Turkey’s Maldives” because of turquoise waters and white sand, its shoreline has receded by up to 30 meters (around 100 feet) in the past 10 years, according to the local mayor.
“We don’t have a single lake that we can say is in a good state in terms of water in Burdur province. They’re either at risk or in a really bad state,” Cevni said.
The larger Burdur Lake closer to the city center has seen water recede by 11 kilometers (6.8 miles), he said, stressing the need for an “urgent water policy.”
“Wasting water is as serious an issue as killing someone. The punishments should be just as serious,” he said.


M&A deals in MENA up 7% as Saudi Arabia, UAE lead the way: EY

Updated 7 sec ago
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M&A deals in MENA up 7% as Saudi Arabia, UAE lead the way: EY

RIYADH: Saudi Arabia and the UAE helped drive merger and acquisition activities in 2024 up 7 percent across the Middle East and North Africa to reach $92.3 billion, according to an analysis. 

In its latest report, professional services network firm EY revealed that the MENA region witnessed 701 deals over the period, a 3 percent rise from the 679 deals seen in 2023. 

EY added that the UAE and Saudi Arabia together reported 318 deals in 2024 valued at $29.6 billion. These two nations were also among the top MENA bidders indicating their active participation in the merger and acquisition landscape. 

According to the analysis, this expansion was driven mainly by reforms in capital markets across the region, as well as strategic policy changes and strengthened efforts to attract international investments. 

Earlier this month, banking firm Morgan Stanley also echoed similar views and said that the MENA region will witness a significant “structural upswing” in transaction volume and value size in 2025 propelled by policy shifts and regulatory reforms. 

Commenting on the latest report, strategy and transactions leader at EY MENA Brad Watson said: “In 2024, the MENA region witnessed positive developments in the M&A space with a year on year increase in activity as well as overall deal value. With companies actively seeking opportunities to grow and diversify their operations, cross-border deals were the major driver in terms of volume and value.”

EY said that the Gulf Cooperation Council region accounted for the majority of deals within the MENA region at 580, accounting for 52 percent of the volume and 74 percent of the value. 

The report added that the UAE reported the largest M&A deal in 2024, with the acquisition of Truist Insurance by Clayton Dubilier & Rice, Stone Point Capital and Mubadala Investment for $12.4 billion. 

The second-biggest deal was made by Saudi Aramco, with the energy giant acquiring a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Tokyo-based Sumitomo Chemical for $8.9 billion. 

The third-largest deal was the acquisition of a 60 percent stake in the Chinese shopping mall company Zhuhai Wanda Commercial Management Group by PAG, Mubadala and Abu Dhabi Investment Authority for $8.3 billion. 

EY revealed that outbound deals contributed to the largest share of M&A transaction value in 2024, accounting for 61 percent of the total consolidated deal value, with 199 transactions amounting to $‌56.6‌ billion. 

In terms of sectors, technology and consumer products were the leading contributors to overall deal volume, each experiencing a 10 percent year-on-year increase.

The US was the largest acquiring country outside of the region by volume and value, with 48 transactions totaling $‌‌4.6‌billion. 

“The top five subsectors in the M&A landscape were insurance, asset management, real estate and hospitality, power and utilities, and technology  — indicating a real interest in the innovative solutions that the MENA region can provide,” said Watson. 

He added: “In addition, there is a focus on strengthening regional relationships with Asian and European countries, enabling MENA countries to gain access to larger and growing markets.”

According to the report, domestic M&As contributed to 48 percent of the total deal volume in 2024, with 339 deals valued at $24.4 billion. 

The technology and consumer products sectors together contributed 35 percent of the deal volume, driven by accelerated digital transformation in the region. 

“In 2024, technology remained the most attractive sector for investors, accounting for 23 percent of total inbound and domestic deal volume. We’re living through a productivity renaissance fueled by technology and AI, which will manifest in capital allocation and M&A,” said Anil Menon, head of M&A and equity capital markets leaders at EY MENA. 

The oil and gas sector topped the sectors in domestic M&A values at $9 billion, largely due to Saudi Aramco’s $8.9 billion acquisition of a stake in Rabigh Refining and Petrochemical Co.


Jordan monthly tourism revenues up 22.8% to $680.5m

Updated 35 min 56 sec ago
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Jordan monthly tourism revenues up 22.8% to $680.5m

RIYADH: Revenue generated by the tourism sector in Jordan reached $680.5 million in January, representing an annual rise of 22.8 percent.

Citing data from the Central Bank of Jordan, the country’s news agency, Petra, reported the boost was primarily driven by a 22.7 percent growth in spending from Jordanian expatriates, a 20.2 percent rise from non-Jordanian Arabs, and a 30.7 percent surge from non-Arab visitors.

Through the Jordan National Tourism Strategy 2021-2025, the country aims to attract international visitors with its archaeological and cultural heritage and natural landscapes. 

Tourism growth in Jordan also aligns with the regional trend, where countries like Saudi Arabia and the UAE are strengthening the sector as a part of their economic diversification agenda. 

The latest report also highlighted a significant increase in spending in outbound tourism, which reached $184.9 million in the first month of the year, marking an annual rise of 29.4 percent,

In January, another analysis released by Jordan’s central bank revealed that the country’s tourism revenues in 2024 amounted to $10.20 billion, representing a marginal year-on-year decline of 2.3 percent. 

CBJ added that this decrease in annual revenues was due to a 3.9 percent drop in the number of tourists visiting the country. 

In its 2024 annual report, the country’s tourism ministry said that the war on Gaza had a detrimental impact on the performance of tourism in Jordan, resulting in a decline in the number of visitors and spending. 

The data revealed that the country witnessed an increase in tourism revenue from Jordanian expatriates by 7.7 percent and from non-Jordanian Arab tourists by 12 percent in 2024. 

Conversely, tourism revenues from Europe declined by 54 percent, followed by an income drop from the Americas at 54 percent and 15.3 percent from other nationalities. 

However, the release added that the number of international visitors to Jordan in 2024 reached 6.10 million, exceeding the target of 5.36 million as outlined in the country’s Economic Modernization Vision. 


Saudi Aramco cuts propane, butane prices for March

Updated 27 February 2025
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Saudi Aramco cuts propane, butane prices for March

RIYADH: Saudi Aramco has slashed the official selling prices for propane and butane for March, according to a statement released on Thursday.

The new prices are set at $615 per tonne for propane and $605 per tonne for butane.

Both propane and butane are types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as feedstock in the petrochemical industry. Although similar, these gases have different boiling points, making them suitable for a range of specific applications.

Aramco’s OSPs for LPG serve as important benchmarks for contracts supplying these products from the Middle East to the Asia-Pacific region.

Propane demand typically peaks in the winter months, as it is a key source of home heating, and this seasonal increase often drives up prices.

The fluctuations in price are a direct reflection of supply and demand dynamics, with colder weather pushing prices higher in line with greater consumption.


Pakistan consumer inflation to remain stable in February — finance ministry

Updated 27 February 2025
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Pakistan consumer inflation to remain stable in February — finance ministry

  • Inflation anticipated to remain within range of 2.0-3.0% for February, prospects of a slight increase to 3.0-4.0% by March 
  • Inflation has eased since last year with CPI coming in at 2.4% in January compared to 24% in the same period last year

ISLAMABAD: Pakistan’s consumer inflation was expected to remain stable in February and maintain a downward trajectory compared to the previous year, the finance ministry said in its monthly economic outlook report on Thursday.

“Inflation is anticipated to remain within the range of 2.0-3.0% for February 2025, however, there are prospects of a slight increase to 3.0-4.0% by March 2025,” the report said.

Inflation has eased since last year with CPI coming in at 2.4% in January compared to 24% in the same period last year.

Authorities have credited the downward trend to economic stabilization under a $7 billion International Monetary Fund program secured last summer.

An IMF mission is due to arrive in Islamabad next week for the first review of the global lender’s facility.

“The primary surplus is expected to improve further in the coming months,” the ministry said, pointing to one of the benchmarks identified by the IMF.

The report also said that foreign remittances, a crucial lifeline for Pakistan’s economy, were expected to rise.

“Workers’ remittances recorded robust inflows of $20.8 billion during July-Jan FY2025, marking a 31.7% increase over $15.8 billion last year,” the ministry said.


Oil Updates — crude gains after Trump cancels Chevron’s Venezuela license

Updated 27 February 2025
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Oil Updates — crude gains after Trump cancels Chevron’s Venezuela license

TOKYO/SINGAPORE: Oil prices climbed for the first time in three days on Thursday, with supply worries resurfacing after US President Donald Trump announced a reversal of a license given to Chevron to operate in Venezuela.

Brent crude oil futures rose 24 cents or 0.33 percent to $72.77 a barrel by 6:28 a.m. Saudi time. US West Texas Intermediate crude oil futures were up 18 cents or 0.26 percent at $68.80 per barrel.

A day earlier, the contracts settled at their lowest since Dec. 10 due to a surprise build in US fuel inventories that hinted at weakening demand and hopes for a potential peace deal between Russia and Ukraine.

Both benchmarks have lost about 5 percent so far this month.

Trump on Wednesday said he was reversing a license given to Chevron to operate in Venezuela by his predecessor Joe Biden more than two years ago.

Chevron exports about 240,000 barrels per day of crude from its Venezuela operations, over a quarter of the country’s entire oil output. Ending the license means Chevron will no longer be able to export Venezuelan crude.

“The Venezuela news triggered unwinding after the recent sell-off amid Russian-Ukraine ceasefire talks,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

“Potential buying from the US Strategic Petroleum Reserve also supported the market since WTI was trading near its lowest level in over two months,” he said.

Last week, Trump said his administration would quickly fill up the SPR. He criticized Biden for tapping the SPR to bring down the price of gasoline.

Market participants remain focused on Trump’s Russian-Ukrainian peace talks. Trump said Volodymyr Zelensky would visit Washington on Friday to sign an agreement on rare earth minerals, while the Ukrainian leader said the success of the deal would hinge on those talks and continued US aid.

US crude oil stockpiles fell unexpectedly last week as refining activity ticked higher, while gasoline and distillate inventories posted surprising gains, the Energy Information Administration said on Wednesday.

“Since this is a seasonal off-peak period, with demand shifting from kerosene to gasoline, the sell-off driven by rising product inventories has likely run its course,” NS Trading’s Kikukawa said.

Separately, Goldman Sachs said in a note on Wednesday that the US administration’s dual goals of commodity dominance and affordability reinforce the bank’s Brent $70-85 range baseline, a range that is conducive to robust US supply growth.