Syria’s economy could take 55 years to recover at current growth rates: UNDP

The Syrian economy has suffered an estimated $800 billion in cumulative GDP losses since the war began. Reuters/File
The Syrian economy has suffered an estimated $800 billion in cumulative GDP losses since the war began. Reuters/File
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Updated 23 February 2025

Syria’s economy could take 55 years to recover at current growth rates: UNDP

Syria’s economy could take 55 years to recover at current growth rates: UNDP

RIYADH: The war-torn economy of the Syrian Arab Republic will take decades to return to pre-conflict levels unless growth accelerates dramatically, according to a report by the UN Development Programme.  

While the country’s gross domestic product has contracted to less than half its 2011 value and unemployment has tripled, the report suggests Syria could recover in a decade with a sixfold increase in annual economic growth. 

The assessment, titled “The impact of the conflict in Syria: a devastated economy, pervasive poverty, and a challenging road ahead to social and economic recovery,” underscores the extensive economic and social toll of 14 years of war.  

“At current growth rates, Syria’s economy will not regain its pre-conflict GDP level before 2080,” the report stated. Achieving recovery within 15 years would require an ambitious tenfold growth increase, bringing GDP to where it would have been without the conflict. 

Deepening crisis 

Nine out of 10 Syrians now live in poverty, and one in four are unemployed, according to the UNDP. The economy has suffered an estimated $800 billion in cumulative GDP losses since the war began. Public infrastructure has crumbled, exacerbating the crisis and prolonging instability. 

The health sector is in collapse, with one-third of health centers damaged and almost half of ambulance services inoperative, the report added. Education has also been hit hard, with 40 percent to 50 percent of children aged 6 to 15 out of school.  

Housing and utilities have been heavily damaged, with a third of all units affected, leaving 5.7 million Syrians in need of shelter. Over half of water and sewer systems are damaged or non-functional, affecting nearly 14 million people. Energy production has fallen 80 percent, slashing national grid capacity by over three-quarters. 

As a result, Syria’s Human Development Index has fallen from 0.661 in 2010 to 0.557, dropping below its 1990 level when HDI was first recorded. 

Recovery path 

The UNDP report outlines a roadmap to accelerate economic recovery and restore stability. “Beyond immediate humanitarian aid, Syria’s recovery requires long-term investment in development to build economic and social stability for its people,” said Achim Steiner, UNDP administrator.  

“Restoring productivity for jobs and poverty relief, revitalizing agriculture for food security, and rebuilding infrastructure for essential services such as healthcare, education, and energy are key to a self-sustaining future, prosperity, and peace.”  

The report stresses the need for a clear national vision, institutional reforms, and improved market access. It calculates that at Syria’s current 1.3 percent annual growth rate, from 2018–2024, it would take 55 years to regain pre-conflict GDP levels. Achieving recovery in 15 years requires at least 5 percent annual growth, while catching up to a no-conflict scenario demands nearly 14 percent annual growth. 

“Syria’s future hinges on a robust development recovery approach,” said Abdallah Al-Dardari, UNDP assistant administrator and director of the UNDP Regional Bureau for Arab States.  

“This demands a comprehensive strategy addressing governance reform, economic stabilization, sector revitalization, infrastructure rebuilding, and strengthened social services. By implementing these interconnected reforms, we can help Syria regain control over its future, reduce reliance on external aid, and pave the way for a resilient and prosperous future for all in Syria.” 

The UNDP assessment is part of a broader effort by the UN Country Team in Syria to shape early recovery and reconstruction initiatives. 


Pakistan stocks rise 3 percent on weekly basis outshining other asset classes

Pakistan stocks rise 3 percent on weekly basis outshining other asset classes
Updated 15 sec ago

Pakistan stocks rise 3 percent on weekly basis outshining other asset classes

Pakistan stocks rise 3 percent on weekly basis outshining other asset classes
  • The market this week crossed the 140,000-point mark
  • The average daily traded volume was 653 million shares

KARACHI: The Pakistan Stock Exchange (PSX) has seen an increase of 3.08 percent on a week-on-week basis, a Karachi-based market research firm said on Friday.

The market this week crossed the 140,000-point barrier and closed the weekend session at 145,382.79 points on Friday, according to the PSX website.

The average daily traded volume and value during the week stood at 653 million shares and Rs47 billion ($165 million), respectively.

“This gain can be largely be attributed to buying by mutual funds on inflow of funds as equities performance continue to outshine other asset classes,” Karachi-based Topline Securities said in its weekly review.

Pakistan trade deficit for July clocked in at $2.8 billion, up by 44 percent year on year, according to the report. The country recorded remittance inflows of $3.2 billion last month, down 6 percent month on month and up 7 percent year on year.

Foreign exchange reserves held by the central bank decreased by $72 million on a weekly basis to reach $14.2 billion as of August 1, the central bank reported on Thursday.


Pakistan launches national ‘Agri Stack’ to digitize farming sector

Pakistan launches national ‘Agri Stack’ to digitize farming sector
Updated 09 August 2025

Pakistan launches national ‘Agri Stack’ to digitize farming sector

Pakistan launches national ‘Agri Stack’ to digitize farming sector
  • Agri Stack to give farmers digital IDs, integrate land data, streamline access to subsidies, credit, insurance and markets
  • Initiative aims to boost productivity, transparency and rural incomes in a sector contributing one-fifth of GDP 

KARACHI: Pakistan has begun work on a “National Agri Stack” to build digital infrastructure for its agriculture sector, aiming to boost farmer access to credit, subsidies and markets, the ministry of IT said on Friday.

Agriculture is the backbone of Pakistan’s economy, employing more than a third of the workforce and contributing around a fifth of gross domestic product. The sector faces persistent challenges, however, including low productivity, fragmented landholdings, water scarcity and climate shocks, while farmers often lack formal identification and credit histories needed to access finance.

The Agri Stack initiative, led by the Ministry of Information Technology and Telecommunication (MoITT) in collaboration with the Ministry of National Food Security and Research (MNFSR), the Land Information and Management System (LIMS) and the Special Investment Facilitation Council (SIFC), seeks to integrate land and farmer data, deliver targeted services and improve transparency in farm support.

In simple terms, the Agri Stack will create a “digital ID and online service hub” for every farmer in Pakistan. It will gather all key information — who the farmer is, what land they own or work on, what crops they grow — into one secure system. This means the government, banks and agri companies can deliver the right help directly to the right farmer, including subsidies, loans, crop insurance, weather updates and market prices.

The system is meant to cut out paperwork, reduce delays, stop resources from going to the wrong people and give farmers better tools to grow and sell their crops.

“The Agri Stack will enable verified farmer identities, land data integration, precision advisory, and efficient delivery of services like subsidies, crop insurance, and credit,” said Federal IT Minister Shaza Fatima Khawaja at a stakeholder consultation in Islamabad, according to a statement from the IT ministry.

“This is the architecture for an inclusive and tech-driven agricultural transformation under Prime Minister Shehbaz Sharif’s Digital Nation Pakistan, in collaboration with the Special Investment Facilitation Council (SIFC).”

LIMS Director General Maj Gen (R) M Ayub Ahsan Bhatti said the platform, also called PAKGROW, would “innovate the agricultural arena of Pakistan by transforming and improving the lives of small farmers and convening policymaking.”

The consultation endorsed forming a steering committee co-chaired by MoITT and MNFSR, a technical working group on data and cybersecurity, and pilot projects over the next 12–18 months. Priority areas include smart input subsidies, weather-indexed crop insurance, credit access through alternative data, and market linkages via LIMS.

Officials said the Agri Stack would combine satellite-driven crop intelligence, digital IDs, trusted payment systems and market platforms to create a “digitally empowered agricultural future.”

If implemented effectively, experts say a national Agri Stack could help Pakistan tackle some of its most entrenched agricultural challenges by giving farmers verified digital identities, streamlining subsidy and credit delivery, and providing timely, data-driven advice on crop management.

Integrating land records, satellite imagery, and market information into a single digital platform could reduce leakages in government support programs, expand financial inclusion for smallholders, improve resilience against climate shocks and connect rural producers more directly to buyers. This would ultimately boost productivity, transparency and rural incomes in a sector that underpins both the economy and national food security.


World food prices at 2-year high on rising meat and edible oils, FAO says

World food prices at 2-year high on rising meat and edible oils, FAO says
Updated 08 August 2025

World food prices at 2-year high on rising meat and edible oils, FAO says

World food prices at 2-year high on rising meat and edible oils, FAO says

PARIS: World food commodity prices rose in July to their highest in over two years, as a jump for vegetable oils and record levels for meat outweighed falling cereal, dairy and sugar prices, the UN’s Food and Agriculture Organization said.

The FAO Food Price Index, which serves as a global benchmark for food commodity prices, averaged 130.1 points in July, a 1.6 percent increase from June, FAO said.

That was the highest reading since February 2023, though the index was 18.8 percent below its peak of March 2022, which followed Russia’s full-scale invasion of Ukraine.

FAO’s meat price index hit a new all-time high of 127.3 points, up 1.2 percent from its previous peak in June, as strong import demand from China and the US boosted beef and sheep meat prices, the agency said.

US beef imports have climbed after drought led to a decline in the domestic cattle herd. China shipped in record amounts of beef last year amid growing popularity of the meat, though an official probe into imported beef has raised uncertainty about Chinese demand.

In other meat markets, poultry prices rose slightly following the resumption of imports of Brazilian chicken by major buyers after Brazil regained its avian influenza-free status following action against a first farm-level outbreak.

In contrast, pig meat prices declined due to sufficient supplies and lower demand, particularly in the EU, FAO added.

The agency’s vegetable oil index surged to 166.8 points, up 7.1 percent month-on-month and the highest level in three years.

This increase was driven by higher quotations for palm, soy, and sunflower oils due to robust global demand and tightening supplies, though rapeseed oil prices fell as new-crop supplies arrived in Europe, FAO said.

FAO’s cereal price benchmark eased to its lowest in almost five years, reflecting seasonal supply pressure from wheat harvests in the Northern Hemisphere.

Its separate rice index dropped 1.8 percent last month, driven by ample export supplies and weak import demand.

Dairy prices edged down for the first time since April 2024, with declines for butter and milk powders offsetting further gains for cheese.

FAO’s sugar price index eased for a fifth consecutive month on expectations of increased production in Brazil and India, despite indications of recovering global sugar import demand, the agency said.

FAO did not update its cereal supply and demand estimates this month. 


Saudi non-oil revenues rise to $40bn in Q2, on par with oil earnings

Saudi non-oil revenues rise to $40bn in Q2, on par with oil earnings
Updated 08 August 2025

Saudi non-oil revenues rise to $40bn in Q2, on par with oil earnings

Saudi non-oil revenues rise to $40bn in Q2, on par with oil earnings

RIYADH: ’s non-oil revenues rose by 6.6 percent in the second quarter of 2025 compared to the same period of last year, reaching SR149.86 billion ($39.96 billion).

According to data from the Ministry of Finance’s quarterly budget performance report, this marks a key fiscal milestone, with non-oil revenues now accounting for 49.7 percent of total government income, up from less than 40 percent a year ago.

Oil income fell by 28.76 percent during this period, totaling SR151.73 billion compared to SR213 billion a year earlier. This pulled total government revenues down by 15 percent annually to SR301.6 billion.

The shift reflects two main drivers: the Kingdom’s economic diversification push under Vision 2030, and the voluntary oil production cuts implemented under OPEC+ agreements in late 2023 to stabilize global prices.

These cuts, initially amounting to 1 million barrels per day, have been unwound in gradual phases throughout 2025, with output increases of 138,000 bpd in April, followed by 411,000 bpd increments in May and June.

Production is on track to return to pre-cut levels by September, earlier than initially planned, as the nation seeks to balance market stability with reclaiming market share.

For the first half of 2025, the Kingdom’s revenues stood at 47.74 percent of the year’s budgeted target, signaling alignment with fiscal planning.

What drove non-oil revenue growth?

The largest contributor to non-oil income was taxes on goods and services, which accounted for 50 percent of the total, or SR 74.95 billion.

“Other revenues” followed with a 19.26 percent share or SR28.9 billion, encompassing earnings from government entities, including the Saudi Central Bank, administrative fees, and port service charges, as well as advertising income, and fines.

Other taxes, primarily corporate zakat, totaled SR26 billion, while income, profit, and capital gains taxes generated SR13.73 billion. Taxes on international trade and transactions added SR6.32 billion.

Much of this growth is linked to robust activity in non-hydrocarbon sectors.

’s General Authority of Statistics had reported that the Kingdom’s gross domestic product grew by 3.4 percent year on year in the first quarter, driven primarily by a 4.9 percent expansion in non-oil transactions while oil activities contracted by 0.5 percent.

The strongest gains came from wholesale and retail trade, restaurants and hotel sector, which grew by 8.4 percent, transport and communications by 6 percent, and finance and business services by 5.5 percent.

This robust non-oil sector performance, reinforced by tourism, entertainment, technology, and manufacturing growth under Vision 2030, has translated into higher consumption taxes, service fees, and other government income streams, helping to further lift non-oil revenues in the second quarter budget performance report, even as oil revenues declined year on year.

Expenditure trends and fiscal priorities

Government expenditures in the second quarter fell 8.9 percent year on year to SR336.13 billion. The largest outlay was compensation to employees, which rose 0.4 percent to SR140.40 billion, representing 41.77 percent of total spending.

Expenditure on goods and services came second, at SR73.58 billion, with a 22 percent share. 

Non-financial assets or capital expenditure reached SR39.9 billion but fell sharply, nearly 39 percent year on year.

Social benefits totaled SR39.2 billion, down 0.1 percent year on year, while “other expenditures” declined 5 percent to SR23 billion.

According to the Ministry data, total expenditure for the first half of 2025 reached 51.24 percent of the annual budget forecast, in line with fiscal planning.

Deficit financing and debt profile

The second quarter closed with a budget deficit of SR34.53 billion, which, while 41 percent lower than the first quarter deficit, is 125.11 percent higher than the same quarter last year.

This increase was expected, as government spending is accelerating in the mid-cycle of Vision 2030 initiatives, particularly in infrastructure and mega-project execution phases.

For the first half of 2025, the deficit totaled SR93.23 billion, fully funded through borrowings, according to the ministry.

End-of-period public debt reached SR1.39 trillion, up 14.1 percent annually, with 62.84 percent classified as domestic and 37.16 percent external.

Outlook

With non-oil revenues approaching parity with oil income, ’s fiscal structure is becoming increasingly resilient to energy price volatility.

Strong tax-based revenues, stable expenditure management, and the phased restoration of oil production position the Kingdom to maintain momentum in funding its Vision 2030 transformation agenda.

Continued expansion in tourism, logistics, finance, and manufacturing is expected to further solidify this trajectory in the second half of the year.

The International Monetary Fund’s 2025 Article IV Consultation reported that ’s non-oil real GDP grew 4.5 percent in 2024, driven by strong performance in retail, hospitality, and construction.

Growth in the non-oil economy is projected to reach 3.4 percent in 2025, supported by robust domestic demand fueled by government-led Vision 2030 projects and solid credit expansion, even amid softer commodity prices.

While lower oil revenues and investment-related imports have resulted in the emergence of twin deficits, the IMF noted that the Kingdom continues to maintain ample external and fiscal buffers.

Overall, real GDP is expected to rise 3.6 percent in 2025, aided by the gradual reversal of OPEC+ production cuts, with oil output forecast to reach 9.5 million barrels per day in July and continue increasing thereafter.

The fiscal deficit is anticipated to peak at 4 percent of GDP in 2025 before narrowing to around 3.2 percent by 2030, with borrowing expected to be the primary financing source.

Public debt-to-GDP is projected to remain moderate, at 40.6 percent by the end of the decade, which will remain consistent with a low sovereign debt risk according to the IMF.


Oil Updates — crude set for steepest weekly losses since June

Oil Updates — crude set for steepest weekly losses since June
Updated 08 August 2025

Oil Updates — crude set for steepest weekly losses since June

Oil Updates — crude set for steepest weekly losses since June

LONDON: Oil prices steadied on Friday and were poised for the steepest weekly losses since late June on a tariff-hit economic outlook and a potential meeting between US President Donald Trump and Russian counterpart Vladimir Putin.

Brent crude futures were up 14 cents, or 0.2 percent, at $66.57 a barrel by 4:16 p.m. Saudi time. US West Texas Intermediate crude futures rose 4 cents, or 0.1 percent, to $63.92.

Brent was on track to be down 4.4 percent over the week while WTI was set to finish 4.9 percent lower than last Friday’s close.

Higher US tariffs on imports from a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil, ANZ Bank analysts said in a note.

The latest tariffs arrive against a backdrop of an already weaker than expected US labor market and Thursday’s announcement by the Kremlin that Putin and Trump would meet in the coming days as trade tensions rise between the US and Russia’s oil customers.

Trump this week threatened to increase tariffs on India if it kept buying Russian oil, which the market viewed as putting further pressure on Russia to reach a deal with the US, said independent analyst Tina Teng.

Trump also said China, the largest buyer of Russian crude, could be hit with tariffs similar to those levied against Indian imports.

The potential meeting raises expectations of a diplomatic end to the war in Ukraine, which could lead to eased sanctions on Russia, with Russian stocks rallying after the news.

“There could be a meeting between Trump and Putin in the near future, which could indicate that Trump is adopting a wait-and-see approach with regard to further sanctions against Russia and its allies,” Commerzbank analysts said in a note.

However, some analysts remain cautious.

“The Russian leader is expected to insist on having his territorial demands granted, a hard sell for the invaded country, while his US counterpart will push for a ceasefire,” said PVM analyst Tamas Varga.

“No breakthrough is anticipated, and the US following through on its threat to impose secondary sanctions on those dealing in Russian energy — including China and India — remains a possibility.”