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.


Moody’s upgrades Oman’s banking outlook to positive on stronger economy 

Updated 7 sec ago
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Moody’s upgrades Oman’s banking outlook to positive on stronger economy 

RIYADH: Improving economic conditions, stronger loan quality, and a resilient banking sector have led Moody’s Investors Service to upgrade its outlook on Oman’s banking system from “stable” to “positive.” 

The agency cited steady non-oil growth, improving borrower repayment capacity, and the government’s enhanced ability to support banks as key factors in its revised assessment. 

Moody’s expects Oman’s non-oil economy to grow by approximately 3 percent in 2025-26, supported by strong business and consumer confidence, a recovery in tourism, and private sector investments in manufacturing, transportation, and renewable energy. 

The rating agency also projects overall gross domestic product growth to accelerate to 2.4 percent in 2025, up from an estimated 1.7 percent in 2024, partly due to a recovery in oil production. 

Loan quality in Oman’s banking sector is expected to strengthen as economic expansion supports borrowers’ repayment capacity. 

Moody’s anticipates a decline in problem loans — those at risk of default — in 2025-2026, along with a reduction in Stage 2 loans, which carry higher credit risks but remain performing. 

Omani banks’ capital positions remain robust, with tangible common equity to risk-weighted assets expected to stay between 13 percent and 14 percent over the next 12 to 18 months. 

Additionally, profitability levels are projected to remain steady, with net income likely to hover around 11 percent of tangible assets in 2025, Moody’s stated. 

Loan-loss provisioning is expected to decline in a more supportive economic environment, while cost efficiencies from digitalization could offset rising operational expenses.   

Liquidity buffers in Omani banks remain solid, despite continued exposure to funding concentration risks. 

Deposits from the government and public-sector entities make up one-third of the sector’s total deposits, limiting diversification.

However, private sector deposits are increasing, and the loan-to-deposit ratio improved to 95 percent as of September, down from 107 percent in December 2022. 

Government support for the banking system has also strengthened, according to Moody’s, driven by Oman’s reduced debt burden and improved debt affordability. 

Gulf banking systems 

Oman’s banking sector stands out as the only one in the Gulf region to receive a positive outlook, as Moody’s revised the banking outlooks for Saudi Arabia, the UAE, Qatar, Bahrain, and Kuwait to “stable.”   

Saudi Arabia’s downgrade from “positive” reflects tightening funding conditions due to credit growth outpacing deposits. While government spending and economic diversification support growth, banks are increasingly reliant on market funding and term deposits.  

In the UAE, Moody’s shifted the outlook to ‘stable’ as improving loan quality balances against moderating profitability. Non-oil GDP growth is expected to soften to 5 percent in 2025, and while strong business sentiment supports the sector, the easing rate cycle and higher corporate taxes are expected to weigh on bank earnings.  

Meanwhile, Qatar’s banking system remains “stable,” with strong capital and liquidity buffers offsetting weaknesses in real estate lending and continued reliance on foreign funding.  

Bahrain and Kuwait also maintain “stable” outlooks. Bahrain’s banking sector benefits from steady non-oil growth, though high exposure to government debt presents a risk.  

Kuwait’s banks enjoy strong liquidity and expected credit growth from government infrastructure projects, but real estate lending risks and exposure to weaker foreign economies pose challenges.


Wizz Air to launch Gatwick-Madinah flights

Updated 7 min 29 sec ago
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Wizz Air to launch Gatwick-Madinah flights

  • Airline: Travelers can ‘connect with a city rich in culture and history, for an affordable price’
  • London airport hails ‘more choice to our passengers with a second destination in Saudi Arabia’

LONDON: European budget airline Wizz Air is launching direct flights between London Gatwick Airport and the Saudi city of Madinah this summer.

The non-stop daily flights from Aug. 1 will use new Airbus A321XLR aircraft, which can fly for up to 11 hours and burn 30 percent less fuel per seat than older aircraft.

Wizz Air’s first flight of the new-generation plane will take place from Gatwick to Jeddah on March 31, The Independent reported.

The airline already operates almost 100 routes across the Middle East, and its expansion into the Kingdom aligns with the Saudi Vision 2030 reform plan.

Saudi Arabia is planning to expand air connectivity to more than 250 destinations around the world as part of wider ambitions to boost tourism, according to Aviation Week.

Travelers seeking to fly from the UK to Madinah must currently take connecting flights. The new service direct to the holy city will cost £233.99 ($295), with more than 174,000 seats available per year on the route, which will have a flight time of about seven hours.

Marion Geoffroy, managing director of Wizz Air UK, said the Gatwick-Madinah route is “an important milestone for the airline, as we continue to widen our network from the UK beyond Europe.”

She added: “This new direct route will give thousands of travelers the chance to connect with a city rich in culture and history, for an affordable price.”

Gatwick’s vice president of aviation development, Stephanie Wear, said: “It is great to be able to offer more choice to our passengers with a second destination in Saudi Arabia, particularly as Madinah is considered the second of the three holiest cities in the Islamic tradition.”

Origin and destination traffic between London and Madinah reached almost 158,000 two-way passengers last year, making it the sixth-largest city pair between Europe and Saudi Arabia, Aviation Week reported.

Wizz Air launched its first service to the Kingdom in September 2022. The ultra-low-cost carrier offers flights from Jeddah to Bucharest, Budapest, Milan, Rome and Vienna; Riyadh to Budapest and Vienna; and Dammam and Madinah to Abu Dhabi.


Saudi Arabia tops global trust rankings with 87% confidence in government

Updated 42 min 16 sec ago
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Saudi Arabia tops global trust rankings with 87% confidence in government

JEDDAH: Saudi citizens have the highest level of government trust of any country in the world, scoring 87 percent globally in the 2025 Edelman Trust Barometer, surpassing last year’s 86 percent rating.

This survey, widely regarded as one of the most comprehensive global reports on public trust, is an annual study conducted by the independent US-based communications and marketing firm Edelman. It measures trust across key institutions—government, business, media, and NGOs—in various countries.

Saudi Arabia’s achievement highlights the success of Vision 2030, which has strengthened institutional stability and governance, positioning the Kingdom as a global leader in public trust. The ambitious initiative aims to create a vibrant society where all citizens can thrive.

According to the survey, China ranked second with 83 percent, a two-point decrease from 2024. The UAE followed closely in third with 82 percent, also down by two points. India saw a positive shift, gaining three points to reach 79 percent, securing fourth place, while Singapore held steady in fifth with 77 percent.

The report also notes significant gains for Argentina, which saw a 21-point increase to reach 16th place with a 42 percent score. Meanwhile, Germany dropped seven points, landing in 26th place with a 35 percent rating.

Spain and Japan experienced declines in trust levels. Spain fell three points to 27th place with a 33 percent rating, while Japan remained unchanged in 28th place at 32 percent.

Saudi Arabia also ranked first globally in future outlook, with 69 percent of citizens confident that the next generation will enjoy a better quality of life—a striking contrast to the under-50 percent optimism found in many other nations.

In addition to maintaining its global leadership, Saudi Arabia outperformed several major countries in trust, including the US with 47 percent, the UK at 43 percent, and Germany scoring 41 percent.

The 2025 Trust Barometer survey collected data from over 33,000 respondents across 28 countries, with around 1,150 participants from each nation. Conducted between Oct.25 and Nov. 16, the survey tracked trends in trust, institutional performance, societal issues, and future outlook. It provides valuable insights into citizens’ perceptions of the effectiveness and reliability of their governments and other institutions, shedding light on societal and political shifts, leadership challenges, and emerging global trends.


SABIC swings to $410m profit as operational gains offset weak sales 

Updated 26 February 2025
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SABIC swings to $410m profit as operational gains offset weak sales 

RIYADH: Chemical manufacturer Saudi Basic Industries Corp. posted a net profit of SR1.54 billion ($410.6 million) in 2024, rebounding from a SR2.77 billion loss the previous year, driven by improved operations and lower losses from discontinued operations. 

The company’s revenue dipped 1 percent to SR139.98 billion amid lower sales volumes, partly offset by 1 percent higher average selling prices, SABIC said in a statement. 

Operating income jumped 54 percent to SR5.74 billion, driven by a 16 percent rise in gross profit to SR25.62 billion. 

At a press conference held at the company’s headquarters, CEO Abdulrahman Al-Fageeh stressed the firms’s ability to sustain strong performance and profitability. 

“Despite the challenges facing the petrochemical industry, SABIC’s operations and business remain resilient, and we continue to deliver solid and stable EBITDA (earnings before interest, taxes, depreciation, and amortization) margin,” he said. 

The company said monetary easing is supporting recovery in the petrochemicals sector, but “overcapacity remains a challenge,” particularly for polymers. 

“Ethylene demand growth remains slower than capacity growth, leading to sustained pressure on capacity utilization rates,” said Al-Fageeh, in a statement. 

The company’s earnings before interest, tax, zakat, depreciation, and amortization for 2024 amounted to SR19.4 billion, up from SR19 billion in 2023. The EBITDA margin improved slightly to 13.9 percent compared to 13.4 percent in the previous year. 

With this growth, SABIC retained its position as the second-most valuable global chemical brand, with a brand value of $4.9 billion. 

Meanwhile, total shareholders’ equity after deducting minority interests stood at SR156.8 billion, reflecting a 6.3 percent decline from SR167.4 billion in 2023. 

SABIC credited the turnaround to several factors: 

  • Discontinued operations losses fell by SR3.5 billion, mainly from adjustments to the fair value of Saudi Iron and Steel Co. 
  • Operating income grew by SR2 billion, aided by stronger gross profit despite higher costs. 
  • Zakat expenses dropped by SR1 billion due to regulatory updates and provision reversals. 
  • Finance income declined by SR1.7 billion, reflecting lower gains from derivative equity instruments. 

Al-Fageeh highlighted SABIC’s strong focus on workplace safety in 2024, reporting a total recordable incident rate of 0.09 — an 18 percent improvement from 2023 — underscoring its commitment to best practices and operational excellence. 

The CEO said delivering value to shareholders remains a priority, as reflected in the announced $2.72 billion dividend distribution for 2024.

 “Our dedication to sustainability and operational excellence remains at the forefront of our strategy as we navigate through the evolving market dynamics of 2025 and beyond,” he added. 

Growth strategy 

Speaking at the press conference, Al-Fageeh highlighted SABIC’s continued growth, emphasizing that the company is on track with its strategic plans. 

He outlined key expansion projects, including the SR24 billion Fujian Petrochemical Complex in China and the Methyl Tertiary Butyl Ether project in Saudi Arabia. 

Additionally, he highlighted a 40 percent increase in production capacity at SABIC SK Nexlene and the new ULTEM resin manufacturing facility launched in Singapore last year. 

He also noted the completion of mechanical work on the pyrolysis oil plant and the commissioning of the hydrotreater unit in the Netherlands, along with the inauguration of the electrically heated cracking furnace project in partnership with BASF and Linde. 

On integration with Saudi Aramco, Al-Fageeh said SABIC has realized $2.57 billion in synergy value to date, underscoring the significance of the collaboration and the need to further strengthen it. 

The company has also sharpened its focus on core businesses and capital efficiency, completing the sale of Hadeed, Alba, and its Functional Forms business, which specializes in plastic films and sheets. 

Outlook 

Looking ahead, SABIC expects global gross domestic product to grow 2.5 percent in 2025 and remains focused on maximizing long-term value for stakeholders through operational excellence, transformation, selective growth, and value creation. 

“We maintain a disciplined approach to manage our capital investment, projecting an expenditure for 2025 in the range of $3.5 billion to $4 billion,” the CEO said.


Saudi Arabia, Jordan discuss expediting customs procedures to boost trade exchange

Updated 26 February 2025
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Saudi Arabia, Jordan discuss expediting customs procedures to boost trade exchange

RIYADH: Expediting customs procedures and simplifying trade transactions were some of the proposals discussed by the Saudi-Jordanian Business Council in order to increase commerce between the two nations.

The body also discussed enhancing cooperation in logistics infrastructure, renewable energy, and food security, the Saudi Press Agency reported. 

This aligns with the ongoing trade relations between the two countries, as transactions between the Kingdom and Jordan increased from 2.89 billion Jordanian dinars ($4.07 billion) in 2018 to 3.74 billion dinars in the first 11 months of 2024, according to the Amman Chamber of Commerce.

During the session, creating a joint platform under the Saudi-Jordanian Business Council as a strategic step to further propel economic cooperation was also discussed. 

This outlet would aim to foster trade and investment ties, facilitate joint investment prospects, as well as connect business leaders to explore new markets across various sectors. 

The council further explained that the joint platform should include organizing trade events and exhibitions that unite companies and business leaders from both countries to exchange expertise and showcase trade opportunities. 

It could also offer training programs and workshops to support human capital development in various fields including technology, innovation, industry, and services. 

The committee suggested that the platform could offer assistance for collaborative projects that benefit both countries, encompassing traditional industries such as manufacturing and emerging sectors like renewable energy and information technology.

It also recommended collaborating on creating policies to promote investment and trade, streamlining customs procedures, and supporting small and medium enterprises through financing, guidance, and marketing opportunities.

The panel further discussed plans to conduct an online survey to gather data on the challenges faced by each sector, analyze the results, and submit findings to the relevant authorities for resolution.

The delegation will reactivate its subcommittees, assigning each to monitor a specific economic sector, including services, logistics, food, and agriculture, as well as education and information technology.
 
The Saudi-Jordanian Joint Committee for Land Transport convened in Amman on the same day to explore ways to elevate land transportation for passengers and goods as well as to streamline crossing procedures. 

The committee examined the agenda, focusing on matters concerning trucks, buses, and vehicles crossing between the two nations. 

Discussions focused on streamlining procedures, improving trade and land transport, as well as reinforcing the joint economy while solidifying the strategic Saudi-Jordanian partnership.