Middle East & Central Asia News
LAST UPDATE: August 1, 2025
Saudi budget deficit shrinks to $9.21b as oil, other revenues rise
In Q2 2025, Saudi Arabia’s budget deficit narrowed to 34.53 billion riyals ($9.21 bn), down 41 % from Q1, as oil revenues rose and non‑oil revenues climbed 14.4 %.
Insight
Demonstrated fiscal resilience: higher revenues, particularly from non‑oil sectors, support Vision 2030 diversification aims. The IMF raised Saudi GDP growth forecast to 3.5 % as economic momentum returns.
Tajikistan’s central bank cuts key rate to 7.75%
The central bank reduced its refinancing rate from 8.25 % to 7.75 % amid June inflation rising slightly to 3.6 %.
Insight
The move reflects confidence in stabilizing price pressures, and signals easing in a regional economy grappling with modest inflation—paving way for lower borrowing costs and credit growth.
Thousands of Afghans scramble for chance to work in Qatar
Under a new recruitment deal, over 3,100 Afghan workers are being considered for jobs in Qatar. Thousands applied across regions like Kandahar and Herat for a limited number of positions.
Insight
The program responds to severe unemployment in Afghanistan under Taliban rule. It highlights how Gulf labor markets absorb regional workforce pressures, offering relief while reshaping migration dynamics. (フランス24, berlinertageszeitung.de)
Egypt Revises Renewable Energy Target to 29.7%: IMF
The IMF’s fourth review of Egypt’s $8 billion loan program reports that the government has lowered its 2030 renewable energy target to 29.7%, down from earlier projections of around 42%. The new breakdown includes ~19.3% wind, ~5.3% solar, and ~5.1% hydroelectric.
Insight
The revised goal reflects fiscal realism amid growth constraints: a scaled‑back but still ambitious shift toward renewables could limit long‑term sustainability and climate alignment if external support doesn’t ramp up. (LinkedIn, africanpeacemagazine.com)
The two rival governments that could split Sudan – explainer
Sudan may be splitting as the army and the paramilitary Rapid Support Forces (RSF) now claim legitimacy via separate governments: the army-backed “Hope Government” in Khartoum and the RSF‑led “Tasis” coalition in Darfur.
Insight
The split mirrors Libya‑style fragmentation, undermining national cohesion. As neither side gains international recognition, Sudan risks long‑term division, further displacement, and breakdown in institutional control. (Reuters, Reuters)
