New downtown projects progressing as planned in Muscat

Scion Industrial Engineering

Oman Tourism Development Company (Omran) has affirmed that work on several projects is progressing at a steady pace and is in various stages of implementation.

Speaking to the Observer, Ammar al Kharusi, Director of Development, said: “We are currently working on the Masterplan for the Sustainable City Yiti project of the flagship ‘The Nikki Beach Resort’ that will be ready for guests early next year.”

This property will have 140 hotel rooms and 30 villas and an array of facilities, including the beach club, restaurants and swimming pools with unique panoramic views.

The Sustainable City Yiti will be developed within the Phase 1 of the Yiti Integrated Tourism Development Masterplan.

The project will be developed in three phases on an area of 3.5 million square metres comprising of residential units of medium-sized villas, townhouses and low-rise apartments.

“The Four Seasons Resort at the Marina Bandar Al Rowdha is a long-term development and is currently in the design stage. Apart from bringing the Four Seasons brand to the Sultanate, the project will add 200 rooms to the market and also upgrade facilities at the marina. The project will be ready by the end of 2026,” Al Kharusi said.

He said Madinat al Irfan would be developed as a premium downtown hub, which will bring more footfall to the area.

A three-star Ibis hotel project is under the implementation stage by the investor while for the Business Park, one building is under construction and three others are in the design stage.

Omran is also working with the local other authorities in other governorates to develop tourism facilities and one of the eagerly-awaited ones is the World Class theme park in Barka developed by the ASAAS, in which Omran is the stakeholder.

“All our future tourism projects will be just hospitality centric but also a pure leisure lifestyle.”

Hayy al Sharq will be spread over a multi-cluster 1.5 million square metre entertainment and leisure theme park, which will boast an integrated theme park, wildlife and water parks, an equestrian centre, and an edutainment centre, as well as retail areas that will offer a range of retail, leisure and dining options. It will also feature hotels, with a residential zone and retail areas.

Zipline in Musandam is part of the Oman Adventure and will be replicated in other parts of the Sultanate of Oman.

https://www.zawya.com/en/projects/construction/new-downtown-projects-progressing-as-planned-in-muscat-c7ty8b5u

Saudi Arabia issues permits for non-oil industrial projects worth SR4.1bn

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Saudi Arabia’s Ministry of Industry and Mineral Resources has announced that the Kingdom issued permits for non-oil industrial projects in August worth an accumulated SR4.1 billion ($1.1 billion), MEED reported.

Some 115 licenses were issued for non-oil industrial projects — 20 percent higher than those issued in July.

Those issued in August brought the total number of non-oil industrial permits granted by MIMR since the beginning of 2022 to 646.

With combined investments of an estimated SR1.37 trillion, the total number of industrial units in the Kingdom hit 10,707 towards the end of August.

The licenses issued in August were for chemicals, metals, machinery, furniture, home appliances and other light-medium products.

While 85 percent of the projects issued with permits were owned by locals, the remaining 15 percent were owned by foreigners or as joint ventures.

MIMR saw an investment volume of SR13.7 billion as it issued 501 new industrial licenses during the first six months of 2022.

During the same period, 721 factories started production, attracting investments amounting to SR19.10 billion, the ministry’s monthly bulletin showed.

This brought the total volume of investments in the industrial sector until June to SR1.36 trillion, with a total of 10,675 factories.

Source:https://www.arabnews.com/node/2191141/business-economy

Saudi Arabia clears 725 industrial projects worth $265bn in 9 months to build domestic capacity

Scion Industrial Engineering

Saudi Arabia has issued permits for 725 industrial projects worth an accumulated SR1.37 trillion ($265 billion) in the first nine months of 2022, according to data from the Ministry of Industry and Mineral Resources.

This comes as the Kingdom is pushing to develop domestic industrial and manufacturing sectors as part of its strategy to diversify away from the oil-based economy.

In September alone, the ministry issued permits for 79 industrial projects estimated to be SR3.1 billion with up to 1,882 licensed workers, the data revealed.

While national investors accounted for 84 percent of the projects in September, 16 percent were foreign-owned or joint ventures with foreign nations.

Moreover, as many as 68 factories started production in September with a volume of investment of SR3.5 billion. The data revealed that the commencement of those factories also generated up to 4,219 jobs during September.

By the end of September, the total number of industrial projects in the Kingdom hit 10,728, up from the 10,192 recorded same period a year earlier, according to data.

In August 2022, the MIMR announced that the Kingdom issued permits for non-oil industrial projects worth an accumulated SR4.1 billion, MEED reported.

Some 115 licenses were issued for non-oil industrial projects — 20 percent higher than those granted in July.

Toward the end of August, the total number of industrial units in the Kingdom reached 10,707.

Until September, the licensed projects covered several small and medium industries, including metals, chemicals, home appliances, paper, etc.

Saudi Arabia is set to become the world leader in sustainable metal production as the Kingdom explores its mining potential, according to Khalid Al-Mudaifer, vice-minister for Mining Affairs, Ministry of Industry and Mineral Resources. He further emphasized that the economic diversification was in line with the goals outlined in Vision 2030.

Speaking at the Mines and Money conference earlier this month in London, Al-Mudaifer said that minerals are indispensable to the energy transition from hydrocarbons to renewables.    

“Decarbonization – the net-zero transition – cannot happen without minerals and metals: a lot of minerals and metals. We need to scale up discoveries, and we need to scale up production,” said Al-Mudaifer.

The vice-minister added that mineral and metal supply chains need to become more resilient to meet rising demands and noted that the ongoing geopolitical tensions have exposed the vulnerabilities in the sector, which may result in “cost spikes of some minerals by 350 percent.”

Source:https://www.arabnews.com/node/2210621/business-economy

UAE, Oman hold first directors meeting for $3bn railway between Abu Dhabi, Muscat

Scion Industrial news

The Board of Directors of Oman Rail-Etihad Rail joint venture company, held its inaugural meeting in Dubai, two days after signing an agreement to form the $3 billion railway company. The passenger trains are designed to reduce travel time from Sohar to Abu Dhabi to 1 hour 40 minutes, and from Sohar to Al Ain to 47 minutes.

During the meeting, the board of directors discussed the implementation plans including technical studies, architectural design, environmental studies for routes, the business model and the commercial affairs of the joint venture.

A strong emphasis was placed on the importance of fast tracking the execution of the project.

In discussion was also the commitment to the highest standards for security, safety and sustainability.

The passenger trains will travel up to 200 kilometres per hour, according to the report, and will connect Abu Dhabi with Sohar to the north of Muscat.

The network will be a contributing factor to the growth of national economies of Oman and the UAE, it will also improve the efficiency of supply chains whilst facilitating cross-border trade by linking commercial ports to the railway network.

“The joint railway network will advance the land transport system between the two countries in line with the best-in-class criteria and standards, providing safe, reliable, and sustainable transportation, which in turn, will further facilitate connectivity between industrial and commercial centres, and cement the longstanding social cohesion between the two countries,” said Suhail bin Mohammed Faraj Faris Al Mazrouei, UAE Minister of Energy and Infrastructure.

The Board of Directors also appointed Eng. Ahmed Al Hashemi as CEO of the company, and Eng. Mohammed bin Zahran Al Mahruqi as Deputy CEO.

“Through this partnership and the logistics progress it will bring about, various economic and trade activities will reap several benefits, creating new opportunities and providing high-quality transport solutions that will contribute to establishing a connection between Sohar and the Omani free zone, with vital economic and industrial zones in the UAE,” said Saeed bin Hamoud bin Saeed Al Maawali, Minister of Transport, Communications and Information Technology in Oman.

Source:https://www.arabianbusiness.com/industries/transport/uae-oman-hold-first-directors-meeting-for-3bn-railway-between-abu-dhabi-muscat

Fragmented performance across Saudi Arabia’s real estate sector in Q1, 2022

Scion Industrial Engineering

Saudi Arabia’s real estate sector has started the year with fragmented performance and activity levels across the Kingdom’s regions.

Looking at Saudi Arabia’s office sector figures, visitation to the workplace has since late September 2021 remained above its pre-pandemic baseline and now sits 19.7 percent above the baseline, with the majority of occupier activity continuing to be very much skewed towards Riyadh. As a result, we have seen average rents in Riyadh’s Grade A segment increase by 8.6 percent and Grade B rents by 6.0 percent in Q1 2022. These market fundamentals also mean that landlords are seldom offering incentives.

In Jeddah, despite the lack of activity and with limited availability in the Grade A segment, Grade A rents rose by 10.8 percent in the first quarter, whereas Grade B rents continued to soften and fell by 4.3 percent. Grade A rents in Dammam and Khobar increased by 4.0 percent and 2.6 percent respectively, with Grade A rents in both locations now above their pre-pandemic levels.

Residential transaction volumes in Saudi Arabia fell by 23.4 percent in Q1 2022, compared to a year earlier, while the total value of transactions fell marginally by 1.9 percent. During this period, the number of transactions totaled 60,336 and the value of transactions reached SAR40.41bn. In Riyadh, the total number of transactions in Q1 2022 fell by 21.6 percent, and it also fell in the Damam Metropolitan Area (DMA) by 31.8 percent.

Jeddah on the other hand saw transactions volumes increase by 5.4 percent in the 12 months to Q1 2022. Over the same period, average apartment prices in Saudi Arabia have increased by 9.6 percent, with prices in Riyadh, Khobar, Dammam and Jeddah increasing by 13.2 percent, 11.3 percent, 9.6 percent and 4.5 percent respectively.

Taimur Khan, Head of Research – MENA at CBRE, said: “Looking ahead, due to the easing of restrictions, particularly in relation to religious tourism, a number of planned events such as the continuation of the Saudi Seasons initiative, and returning business visitation, we expect that performance in Saudi Arabia’s hospitality sector will continue over the course of 2022. However, as other global locations also continue to open their borders for restriction-free travel, we expect that locations which have benefitted from redirected visitations over the last two years, such as Al Khobar, will see performance levels deteriorate until the second half of 2022.”

SOurce:https://thepeninsulaqatar.com/article/29/04/2022/fragmented-performance-across-saudi-arabias-real-estate-sector-in-q1-2022

Lebanon banking sector crumbles amid a deepening economic crisis

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The recent Lebanese court order restricting lenders from moving money abroad is the fallout of deep rot long building in the banking sector. This comes on the back of the country’s mounting debt amidst the deteriorating economic condition – the crisis that many blame on Lebanon’s corrupt political class and the government which defaulted on repaying the debts to banks.  

On March 24, Lebanese judge Ghada Aoun ordered the Lebanese customs administration to prevent six Lebanese banks from sending money abroad. The banks targeted were Bank of Beirut, Bank Audi, Creditbank, Bankmed, SGBL and Blom Bank.

“Lebanese banks are technically broke, but until this moment, they aren’t legally so,” said economist Roy Badaro in an interview with Arab News.

He explained that the word ‘illiquid’ might be more appropriate as no one really knows about banks’ possible undeclared assets. In addition, no Lebanese bank has so far officially declared bankruptcy.
Badaro said banks are in denial of their situation. “Their main issue is that they were lured by the unhealthy profits offered by the government to finance its debt. Meanwhile, they abstained from financing the economy,” he pointed out.

Liquidity crisis
As the Lebanese government is embroiled in massive corruption charges, the state has amassed over a $90 billion debt that it is no more capable of paying, which in turn affected the liquidity of banks.
The banking sector responded to the asset freeze with a two-day strike on March 21 and 22. This might be repeated if more pressure is placed on the banking sector, warned a banking source on condition of anonymity Judge Aoun is a close ally of President Michel Aoun, who is demanding a forensic audit of the Lebanese central bank, in the wake of Lebanon’s default on over a $90 billion debt as a fallout of state mismanagement and corruption.

Ironically, Aoun’s party has been in power for the past decade and exclusively handled the electricity portfolio. Experts believe the latter accounts for over 40 percent of the debt. Industry observers tracking the development fear the banking sector’s insolvency crisis that has been triggered by the state’s failure to meet its debt payments is expected to worsen with time. The sector will further unravel, with banks having to shut down possibly.

Judge Aoun had previously frozen the assets of these banks, including members of their boards. The judge is in the process of investigating transactions they undertook with the country’s central bank.
Additionally, Judge Aoun issued travel bans against the heads of the boards of these banks.

While the banks are facing the heat now and are being blamed for the current economic crisis, industry observers believe that the country’s corrupt political class should take the blame as it failed to discharge its duties and responsibilities.

“The political class is attempting to divert attention from its failings prior to the (May parliamentary) elections. They want to show that they are doing something by making the banking sector their scapegoat,” said one of the bankers whose assets have been frozen, on condition of anonymity, in an interview with Arab News.

Lebanon will hold its first post-uprising parliamentary elections in May. In October 2019, Lebanese rose and protested against Lebanese political parties’ corruption.

“If the authorities implemented official capital controls measures, we would not be in the current quagmire of lawsuits, asset freeze, and other judicial decisions,” said Nassib Ghobril, chief economist at Byblos Bank, in an interview with Arab News.

One of the main aims of a capital control law is to ensure equal treatment to all depositors, he underscored. The capital control law will additionally limit preferential treatment that non-resident and well-off depositors can afford by retaining lawyers at elevated costs. At the same time, local judicial decisions discriminate against the other depositors by giving advantage to one over many,
added Ghobril.

Banking sector to shrink
Previous market dynamics allowed for the existence of 47 commercial banking groups, he said, adding that the market forces will determine the future number of banks in Lebanon.

Ghobril feels that the outlook of each bank will be decided by the plan for solvency and liquidity and the business model that banks will submit to the central bank.

In turn, the authorities will put certain criteria for recapitalization, which will determine which banks will continue and which banks will exit the market.Badaro believes nonetheless that only a few banks will survive.

“As we foresee a GDP of less than $30 billion in the next five years, and as the ratio of banks assets to GDP would be around 100 percent, this means we will end up having 7 to 12 banks,” he emphasized.
The sector’s role will also evolve. In his opinion, its main functions will be focused on trade
financing and short-term loans in small amounts.

According to figures provided by Badaro, banks currently possess an estimated $4 billion, which means that for most depositors, money cannot be accessed.

The government and central bank estimated the financial gap at $69 billion, or what they consider as the “losses,” specified Ghobril.

What was leaked to the press is that 74 percent of this amount will have to be borne by depositors and commercial banks, while the state and the public sector escape without assuming any part of the burden, he added.

“This is absurd, as it is the abuse of power, the mismanagement of the public sector, and the mismanagement of the ensuing crisis that led to the current state of the Lebanese economy and banking sector,” said the Byblos Bank economist.

Therefore, Ghobril warned that the state should assume most of the burden of the losses, not depositors, “as putting the burden on depositors will lead to a long-term loss of confidence.”

Source:https://www.arabnews.com/node/2059586

Delegation of 9th National Defense batch visits Special Economic Zone at Duqm

The Public Authority for Special Economic Zones and Free Zones (Opaz) organised a visit for the delegation of the 9th National Defense batch, headed by Air Vice Marshal Eng. Saleh bin Yahya Al Maskari, Commandant of the National Defense College (NDC) and several faculty members, to the Special Economic Zone at Duqm continued for three days.

Upon their arrival at the headquarter of the Special Economic Zone at Duqm (Sezad), the delegation met with Dr Ali bin Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones, and many officials from Sezad and companies operating in the Zone.

The delegation was briefed on the different capabilities of Sezad in many sectors, most notably the renewable energy sector (green energy), logistics and others. Further, the delegation was toured around the different projects and facilities in the zone, including the port and dry dock and energy projects such as Duqm Refinery and central facilities.

Moreover, the delegation visited several other projects in Sezad such as the multi-purpose Fishing Port, the Port of Duqm, the dry dock, the Karwa Motors factory, the tourist zone and the Rock Garden.

Source:https://timesofoman.com/article/113726-delegation-of-9th-national-defense-batch-visits-special-economic-zone-at-duqm

Top influential conservative Saudi cleric who once headed judiciary dies

An influential Saudi cleric who once served for years as head of the kingdom’s Shariah courts and whose ultraconservative views sparked outcry died on Wednesday, leaving behind a legacy that mirrored the kingdom’s decades-long slide toward Wahhabism.

His family announced his death on Twitter, saying 90-year-old Sheikh Saleh bin Mohammed al-Luhaidan died after battling an illness that was not disclosed. His funeral is taking place Wednesday in line with Islamic tradition of immediate burial.

On Twitter, an Arabic hashtag with his name saw an outpouring of prayers and praise for the cleric and Islamic

His ultraconservative views, though in line with the country’s Wahhabi doctrine at the time, prompted his sacking in 2009 as head of Saudi Arabia’s judiciary after he grabbed international headlines for suggesting that television station executives who broadcast immoral content during the month of Ramadan could face the death penalty for corrupting society.

Al-Luhaidan had held the post for over two decades.

His dismissal by King Abdullah came as the monarch, who died in 2015, cautiously introduced reforms and tried to curtail some of the sweeping influence of Wahhabi clerics.

Al-Luhaidan was also notably a member of the Council of Senior Clerics since its establishment in 1971. The elite body comprised of the kingdom’s most senior male scholars rubber stamps royal policies and issues religious edicts known as fatwas.

In another incident, this time in 2006 during the U.S.-led war in Iraq, a purported audio recording was leaked of al-Luhaidan encouraging young men to fight in Iraq. He denied inciting violence in Iraq and suggested the audio recording had been edited. Saudi Arabia had been vehemently opposed to the war in Iraq and had warned about the consequences of Iranian influence there.

Throughout other points of his lifetime, al-Luhaidan delivered sermons from Mecca’s Grand Mosque, which houses Islam’s holiest site the Kaaba, oversaw publication of an Islamic magazine and was a member of the Saudi-based Muslim World League.

The sheikh was born in 1931 in the landlocked province of Qassim, known as the kingdom’s most conservative region.

The kingdom has changed dramatically in the years since then, in part because of its oil boom, and more recently as Crown Prince Mohammed bin Salman solidifies his grip on power and shakes up the economy.

With backing by his father, King Salman, the crown prince has clipped the powers of the kingdom’s clerics and religious police, lifted the ban on women driving, permitted concerts and movies, opened the country to tourism, ended gender segregation in public spaces and advocated for a return to “moderate Islam”.

A report published last year by the Carnegie Endowment for International Peace about Saudi Arabia’s religious reforms noted that King Salman had kept in place conservative figures like Sheikh Saleh al-Luhaidan while appointing more modern-thinking clerics to the Council of Senior Scholars.

The report said the king was meanwhile diluting the influence of Wahhabi clerics by asking for their advice less frequently.

For decades, the Sunni Hanbali offshoot, also known as Wahhabism, had shaped all aspects of life inside the kingdom.

Its adherents preached that women should not be allowed to work in public-facing jobs, drive, play sports or travel without a male guardian. Single men were segregated from women in restaurants, women wearing nail polish or showing their faces were shooed out of malls and music was shunned.

This ideology spread to other Muslim nations, at times with backing by the Saudi government as a means to counter the rising influence of Shiite Iran after the 1979 revolution.

source:https://economictimes.indiatimes.com/news/international/saudi-arabia/top-influential-conservative-saudi-cleric-who-once-headed-judiciary-dies/articleshow/88711157.cms

Saudi, French firms ink deal to set up aircraft parts manufacturing hub

Scion Industrial Engineering

Saudi Arabian Military Industries (SAMI), a wholly-owned subsidiary of the Public Investment Fund (PIF), has signed a joint venture agreement to build a high-precision manufacturing facility in the kingdom to produce aircraft components.

The deal with France’s FIGEAC AÉRO Group and the Saudi Arabian Industrial Investments Company (Dussur) will establish SAMI FIGEAC AÉRO Manufacturing.

The announcement was made during the Saudi-French Investment Forum held on the sidelines of the visit of the President of France Emmanuel Macron to Saudi Arabia.

The joint venture aims to develop Saudi Arabia’s aerostructure manufacturing capabilities, train Saudi engineers and technicians to work as part of the project, and boost the localisation of military and civil aerospace industries in line with Saudi Vision 2030, a statement said.

Initial products will focus on machining and processing of light alloy (aluminum) and hard metal (titanium) aerospace parts, it added.

Ahmed bin Aqeel Al-Khateeb, chairman of SAMI, said: “By creating a distinctive partnership between local companies and a leading international player, we aim to accelerate the localisation of advanced technologies in the aerostructures domain.

“In doing so, we shall also increase investment flows and create high-quality job opportunities for Saudi youth, in line with the targets outlined in Saudi Vision 2030.”

Walid Abukhaled, CEO of SAMI, added: “Together, the three signatories will collaborate with Saudi authorities and regulators to identify opportunities for the transfer of technology and expertise to the kingdom, enhancing the local content and creating exciting opportunities in both the commercial and military aerostructure manufacturing industries.”

Jean-Claude Maillard, chairman and CEO of FIGEAC AÉRO, said: “Our shareholding… will be a minor one, but the Saudi company’s future investments will be backed by robust local and state banking partners. We will have a crucial role to play in laying the foundations of Saudi Arabia’s future aerospace industry.”

Raed Al-Rayes, CEO of Dussur, added: “This joint venture marks an important milestone in developing the industrial metals value chains in its highest application, aerospace.”

The joint venture follows the signing of a memorandum of agreement in 2019 at the International Paris Airshow.

Over a 10-year period, the project will encompass a series of major investments including the launch of a new production facility in Jeddah.

Phase one involves ramping up the facility, which is scheduled to be completed by 2024 with an investment of about $50 million and aiming to generate $10 million revenue by the end of 2024.

Source:https://www.arabianbusiness.com/industries/technology/saudi-french-firms-ink-deal-to-set-up-aircraft-parts-manufacturing-hub

As COP26 negotiations conclude, call for urgent climate action in Iraq is louder than ever

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The United Nations in Iraq has welcomed commitments made at COP26 in Glasgow but stresses the need for urgent action on these promises to limit climate change’s adverse impacts on human rights and sustainable development in Iraq.

Commitments made at the UN Framework Convention on Climate Change (UNFCC) conference – attended by a Government of Iraq high-level delegation from representatives of the ministries of Environment, Finance, Foreign Affairs, Higher Education, Industry and Oil, as well we representatives from the private sector – include:

• The announcement of an additional $US356 million to the Adaptation fund which will increase the resilience of vulnerable communities on the frontline of climate change. This stronger commitment paves the way for greater resources to avert, minimise and address loss and damage in Iraq.

• The Breakthrough Agenda, an international strategy to deliver clean and affordable technology everywhere by 2030, signed by more than 40 world leaders. This commitment is critical to helping Iraq’s gradual energy transition and accelerating low carbon solutions.

• The Global Forest Finance Pledge, a commitment to end deforestation by 2030 will help Iraq scale up its forest conservation efforts, facilitate trade to promote sustainable development and increase rural employment opportunities.

• A commitment to improving transparency and environmental integrity through the implementation of Article 6 of the Paris Agreement on international emissions trading. Iraq fully supports an independent mechanism to redress potential harms and support the creation of new markets for carbon unit trading by both public and private sectors.

Additionally, the Glasgow Climate Pact cites several areas of cooperation relevant to Iraq, including the need to boost funding for diverse climate technologies and a stronger commitment to capacity building. “Iraq is a country vulnerable to the negative impacts of climate change – one of the most vulnerable in the region and indeed the world. We are grateful to the United Nations Development Programme in Iraq for its ongoing support to climate action in Iraq, and for supporting the delegation to this important conference,” says Iraq’s Acting Minister for Environment, Dr Jassem Al-Falahi.

The United Nations Secretary-General’s Deputy Special Representative for Iraq and Resident Coordinator Irena Vojáčková-Sollorano emphasises the UN in Iraq’s commitment to urgent action on climate change. “Climate Change in Iraq is a severe threat to fundamental human rights and creates barriers to sustainable development. Across the UN system in Iraq, we are working on the key components of climate action – from awareness-raising and adapting to climate change, to mitigating its risks. With COP26 now done and dusted, we urge world leaders to make good on their promises, many which are critical to supporting a cleaner, safer and greener Iraq,” she says.

Resident Representative of UNDP Iraq, Zena Ali Ahmad acknowledged UNDP’s role in supporting the COP26 delegation and Iraq’s formal submission of its Nationally Determined Contribution (NDC) – the country’s central policy for driving climate action. “UNDP Iraq was proud to support the Government of Iraq’s formal submission of its NDCs, as well assisting the delegation to COP26 to ensure Iraq’s needs were firmly placed on the global agenda. Our support to the country’s fight against climate change does not end with COP26, and we look forward to continuing our work with the Government, UN partners, the international community and others to implement Iraq’s NDCs and turn the conference outcomes into tangible actions,” she says.

Source:https://reliefweb.int/report/iraq/cop26-negotiations-conclude-call-urgent-climate-action-iraq-louder-ever-enar