AGP Executive Report

Marine Food Security: A new report warns the world is facing an “anchovy problem,” with global production down sharply and prices surging, threatening fishmeal supplies that underpin aquaculture from salmon to shrimp. Regional Shipping & Climate Risk: The Strait of Hormuz remains a flashpoint as the US and Iran continue indirect talks in Doha, but unresolved disputes could keep disrupting trade and energy flows that also ripple into environmental and labor conditions across the region. Waste & Circular Economy: Bahrain is studying Saudi Arabia’s reverse vending machine model, exploring smart kiosks that reward residents with instant points for recycling plastic bottles and aluminium cans. Water & Agriculture: Saudi Arabia’s fruit marketing service centres aim to cut post-harvest losses through washing, sorting, packing and refrigerated storage, strengthening farm-to-retail links and reducing waste. Heat Stress & Built Environment: Gulf luxury housing is being pushed to rethink design as extreme heat research raises the bar for how homes should be built. Labor & Migration: Kenya’s senior official begins talks in Riyadh focused on protecting Kenyan workers in Saudi Arabia, a reminder that social resilience and environmental health often move together.

Saudi Water Week 2026: Saudi Arabia’s water sector put AI and governance front and center at Saudi Water Week, highlighting digital transformation efforts and new reforms aimed at improving efficiency and planning. Recycling push: Bahrain is studying Saudi-style reverse vending machines that pay residents for plastic and aluminium returns, with legal and operational details still being worked out. Maritime security and trade: The US and 12 Middle Eastern countries agreed to strengthen coordination to keep trade flowing through the Strait of Hormuz, pledging better maritime security and defense cooperation. Green data infrastructure: Letsia will invest SAR 50m in a “green” Riyadh data center (HyperDC), using advanced cooling to cut water use and renewable power for energy needs. Tourism and nature: Jazan reported a 47% jump in visitors in 2025, driven by natural and cultural attractions and infrastructure upgrades aligned with Vision 2030. Arbitration modernization: Saudi Arabia’s arbitration framework continues to evolve, with courts showing a flexible, technology-friendly approach and high award enforcement rates.

Strait of Hormuz Tensions: Iran’s deputy foreign minister Kazem Gharibabadi rejected a US-led Bahrain security summit, insisting Hormuz is under Iran’s command and warning against foreign military frameworks—an issue that directly affects regional shipping and environmental risk around one of the world’s busiest sea lanes. Water Tech Push: Saudi Arabia used the inaugural Saudi Water Week in Jeddah to stress that digital transformation and AI are now “economic, environmental and national” priorities, aiming to cut water losses and improve decision-making through an integrated data platform. BESS Market Signals: A new Wood Mackenzie report says Chinese firms captured 76% of the global battery energy storage integrator market in 2025, while Saudi tender rounds covered 5 GW/20 GWh—highlighting fast-growing storage demand tied to grid resilience. Tourism & Nature in the Kingdom: Jazan reported 47% visitor growth in 2025, and rural farms in Al-Baha are expanding licensed, nature-based tourism—both pointing to Saudi efforts to diversify with lower-impact outdoor experiences. Aviation Sustainability Cooperation: Saudi Air Navigation Services and NERA signed an MoU with Singapore’s CAAS to collaborate on air traffic management, innovation and sustainability, including unmanned aircraft traffic management.

Smart Farming in Saudi Arabia: Haswa Mango Farm in Rijal Alma says an integrated AI system—using soil moisture, wind monitoring and water-quality analysis—has pushed flowering rates to over 98% in 2026, aiming to cut waste and boost productivity in a rainfall-and-well-water setup. Water-Saving Policy: Saudi Arabia introduced a new irrigation code designed to save 2 billion cubic meters of water annually, targeting more efficient use in a water-stressed climate. AI and Power Demand Debate: The UN and ITU are convening an “AI for Good” commission, as the UN continues to press companies to disclose the real power costs of data centers—an issue with direct climate and energy implications. Energy Security and Shipping: CENTCOM led a regional defense dialogue in Bahrain focused on keeping commerce flowing through the Strait of Hormuz, after it was disrupted during the US-Iran conflict. Oil Market Pressure: Saudi Aramco reportedly sold millions of barrels of crude on an ad-hoc spot basis to Asia, reflecting how the war reshaped supply routes and pricing. Saudi Digital Leadership: Saudi Arabia ranked first globally in the 2026 ITU ICT Development Index, citing strong connectivity and broadband speeds.

Water & Infrastructure: Saudi Arabia’s National Water Company says it completed 50 water and sanitation projects in 2026 worth SR2.4bn, expanding main lines and feeder networks by 1,360 km and boosting reservoir storage to meet rising demand. Water Security Policy: Saudi Arabia introduced a new irrigation code aimed at saving 2 billion cubic meters of water annually, as the country pushes tighter water management. Carbon Markets: Almarai signed an MoU with the Regional Voluntary Carbon Market Company to explore participation in Saudi Arabia’s voluntary carbon market and potential carbon credit trading. AI & Energy-Use Pressure: Cisco’s research warns Saudi organizations have a two-year window before network capacity hits limits as AI and agentic AI strain enterprise networks, raising the stakes for modernization. AI Sovereignty: Magna AI and Arabic.AI agreed to accelerate Arabic-native AI capabilities in Saudi Arabia, combining infrastructure and an Arabic language “intelligence layer.” Regional Climate Context: Spain reported over 1,000 heat-related deaths in June, underscoring how extreme heat is intensifying across Europe. Hydrogen/Ammonia Shift: Yara will not proceed with acquiring ammonia assets in Louisiana’s Clean Energy Complex, but will finalize a marketing and distribution deal for renewable ammonia from NEOM’s green hydrogen project in Saudi Arabia.

Water Security: Saudi Arabia introduced a new irrigation code aimed at saving 2 billion cubic meters of water annually, as the Kingdom pushes tighter water management ahead of growing demand. Regional Water Cooperation: Saudi Arabia and India signed MoUs in Jeddah to strengthen water partnership and cooperation on water resources. Climate Finance: The World Bank extended its Climate Change Action Plan but dropped the 45% climate finance goal, a move tied to pressure from the current U.S. administration and other major shareholders, drawing criticism from developing countries. Carbon Markets: Almarai signed an MoU with the Regional Voluntary Carbon Market Company to explore participation in Saudi Arabia’s voluntary carbon market and potential carbon credit trading. Biodiversity & Land Use: Saudi Arabia’s Jazan region highlights forest and nature assets, including “71 forests,” as interest grows in protecting local ecosystems. Industrial Monitoring: Petrofibre Arabia promoted fibre-optic sensing for real-time pipeline leak detection and asset integrity, linking operational safety with environmental protection. Air Quality & Health: Saudi Arabia is rolling out mandatory health and fitness screenings for workers across all sectors, a public-safety step with indirect environmental health benefits.

Water Security Push: Saudi Arabia’s Saudi Irrigation Organization says a new national irrigation code is set to save about 2 billion cubic meters of water annually, while treated wastewater use is rising fast—industrial demand could top 100 million cubic meters per year by 2030. Regional Water Cooperation: India and Saudi Arabia signed MoUs during Saudi Water Week in Jeddah to expand cooperation on sustainable water management, irrigation networks, and capacity building. Saudi Water Week Momentum: The first Saudi Water Week in Jeddah brought together regional partners and highlighted innovation and sustainability in water planning and reuse. Climate Finance Shift: The World Bank will “retire” its 45% climate co-benefits lending target but extend its Climate Change Action Plan, signaling a move toward climate-linked development outcomes rather than fixed funding shares. Plastic Pollution Talks: UN plastics pact negotiations restarted in Nairobi, with concerns that curbs on plastic production could be sidelined. AI Infrastructure (Energy/Water Link): Magna AI and Emaar Executive Company announced plans to build sovereign AI data centers in KSA, adding pressure for efficient power and water use as digital demand grows.

Water Security & Regional Cooperation: India and Saudi Arabia signed a water resources MoU at Saudi Water Week in Jeddah, aiming to boost capacity building and share best practices in sustainable water management and irrigation. GCC Water Planning: Saudi’s electricity, water and renewables minister joined a GCC meeting on a regional water interconnection network to secure supply via alternative routes and surplus desalinated water, with feasibility work underway. Biodiversity & Urban Nature: Jordan’s JCDCF and RSCN will create a 1,000-dunum ecological park in Amra City, using native planting, rainwater harvesting, and habitat design to restore vegetation and support migratory birds. Hydrogen Push: Hy-Hybrid Energy and China’s Hyvoda Hydrogen signed a strategic partnership to develop and commercialize methanol hydrogen generators and electrolyser systems for the UK and EU. Maritime Risk in Hormuz: Despite a ceasefire, Strait of Hormuz transit remains sharply below normal as attacks and competing routing rules keep shipping constrained, insurance costs high, and market confidence fragile. Aviation Emissions Focus: Kuwait highlighted ACAO work reviewing aviation safety, security and environmental issues, including unified Arab strategies to cut aviation carbon emissions. Industrial Decarbonization via Tech: Mastek will modernize Yanbu Cement’s production-to-dispatch operations using Industrial IoT and automation, targeting real-time visibility and reduced manual dependency.

Water Security & Climate Resilience: Egypt’s water minister urged a global partnership on non-conventional water and called for more funding for water projects, highlighting “Water 2.0” work on desalination, digital transformation, smart management, resilient infrastructure and nature-based solutions. Saudi Water Week: Saudi Arabia kicked off its first Saudi Water Week in Jeddah, with the National Water Company backing the event through exhibitions, panels and MOUs focused on wastewater treatment, customer experience and smarter, more sustainable water services. Energy & Environment Risk: A Saudi Aramco helicopter crash near Ras Tanura killed 14 Saudi nationals; the incident is under investigation, adding pressure to safety in a sensitive oil-and-shipping hub tied to Strait of Hormuz risks. Sustainable Infrastructure & Data: Letsia said its HyperDC green data center phase in Riyadh has surpassed SAR 50M, positioning the project around energy efficiency and sustainable operations. Tourism & Nature: AlUla rolled out immersive experiences that blend heritage with nature, including wildlife-focused tours around Hegra. Built Environment Sustainability: JLL was named leasing agent for Al Bustan Business Park in Riyadh, targeting LEED Gold and linking the project to Vision 2030 sustainable urban growth. AI for Tourism: Saudi Arabia launched an AI Tourism Vision and TourismX platform to digitize the visitor journey and support a more “intelligent and sustainable” tourism ecosystem.

Water Security & Innovation: Saudi Arabia kicked off the first Saudi Water Week in Jeddah, a five-day push bringing together the 7th Arab Water Forum and consultations for the 11th World Water Forum, with an exhibition spotlighting desalination, water reuse, and digital water management. Regional Water Cooperation: Egypt’s water minister used the event to call for a global partnership on “non-conventional” water and more financing for water projects, while emphasizing digital monitoring and nature-based solutions. Gulf Water Commitments: Bahrain also reaffirmed support for water security at the same forum, highlighting treated wastewater use and groundwater protection. Industrial Safety: A Saudi Aramco helicopter crash near Ras Tanura killed 14 people; authorities launched an investigation into the cause. Biodiversity & Nature: A feature on Jazan’s 71 forests spotlights mountain, valley, and mangrove ecosystems and their role in biodiversity and ecotourism. Wildlife Trade Controls: Oman Air signed the Buckingham Palace Declaration to help curb illegal wildlife trade through stronger transport-sector cooperation. Tourism Tech (Indirect): Saudi Tourism launched an AI Tourism Vision and “TourismX” platform aimed at building a more sustainable, tech-driven tourism ecosystem.

Digital Aviation & Sustainability: Dammam Airports was named among the top five global projects for digital transformation in asset management, aiming to boost reliability and long-term sustainability. Wildlife Protection: Oman Air signed the Buckingham Palace Declaration to strengthen airline and logistics cooperation against illegal wildlife trade, including better detection and information sharing. Transport & Logistics: Saudi Arabia expanded transport ties with China at Transport Logistic China 2026, signing smart-mobility and logistics agreements and highlighting a “modern and sustainable mobility” regulatory push. Water & Climate Reality Check: A cloud-seeding expert warns “on-demand” artificial rain can’t solve drought unless suitable clouds already exist, challenging hype around technology-led rainfall fixes. Heat Stress in the Region: A major heatwave report says parts of Saudi Arabia and the wider Middle East are nearing or exceeding 50°C, raising public health and environmental pressure. Maritime Risk Around Hormuz: With renewed US-Iran strikes and corridor changes near Oman, freedom of navigation through the Strait of Hormuz remains a key concern for regional stability.

Water & Energy Security: Saudi’s National Water Company (NWC) is taking part in Saudi Water Week 2026 in Jeddah (June 28–July 2), highlighting water sustainability, wastewater treatment tech, incident analytics, and service-efficiency improvements under Vision 2030. Biodiversity & Farming Resilience: Estidamah (Jazan) and FAO are running a two-day workshop on community seed banks, aiming to conserve local plant genetic resources, strengthen agricultural biodiversity, and help farmers preserve and exchange locally adapted seeds. AI’s Environmental Cost: A UN-backed report warns AI could sharply raise electricity use, emissions, and cooling-water demand by 2030, arguing efficiency gains may be offset by expanded use. Maritime Risk in the Gulf: UKMTO reported a tanker struck by an unidentified projectile in the Strait of Hormuz; no environmental damage was reported so far, but authorities are investigating and advising caution. Green Data Infrastructure: Letsia HyperDC launched a SAR 50M green data center project in Riyadh, adding to Saudi’s push for lower-impact digital infrastructure. Agriculture & Climate Adaptation: Saudi researchers are exploring biotech tools to boost saffron (“red gold”) productivity and quality in arid regions like AlUla, Tabuk, and Al-Baha.

Maritime Security & Environment: UKMTO reported a tanker in the Strait of Hormuz was struck by an unidentified projectile; no environmental damage was reported so far, but authorities urged caution as regional attacks continue. Saudi Governance: Saudi Arabia approved a law for preserving and managing seized and confiscated assets in money laundering, predicate offenses, and terrorism financing cases, aiming to boost transparency and protect public and private interests. Climate & Research Integrity: A climate actions critique argues UNFCCC reviews haven’t delivered concrete cuts, while a separate report says India is driving a surge in research paper retractions—raising concerns about scientific quality as Saudi Arabia appears among the higher-retraction countries. Circular Logistics: GEODIS completed a pilot testing recyclable paper-based thermal covers for pharma airfreight across India and Saudi Arabia, maintaining temperature integrity during trials. Water & Health: A Saudi-linked item highlights the need for waterborne disease prevention messaging for residents. Regional Diplomacy: Gulf-US foreign ministers met in Manama after the US-Iran MoU, stressing GCC involvement and security priorities.

Maritime Security & Energy Risk: A cargo ship was hit on the UN-backed “safe route” through the Strait of Hormuz as tanker traffic tried to resume, underlining how weak enforcement can quickly raise insurance, fuel, and supply-chain costs for countries that rely on the strait. Environmental Damage From Conflict: Ecologists criticized a $300bn US-Iran 14-point MoU for not earmarking funds for environmental remediation, warning that war-driven pollution, toxic smog, and habitat harm can outlast reconstruction. Green Digital Infrastructure in Riyadh: Letsia unveiled Letsia HyperDC, a SAR 50m “green” data center and enterprise cloud project in Riyadh, saying it will use renewable energy integration and advanced cooling to cut carbon footprint. Climate & Heat Resilience: Europe’s heatwave coverage highlighted how extreme temperatures are straining daily life and cooling access, with lessons relevant to Gulf heat adaptation. Water & Weather Threats: S&P warned several emerging markets, including the Philippines, are highly exposed to El Niño impacts that can disrupt rainfall, water and electricity supply, and food production. Saudi Regional Security Stance: Saudi Arabia called for inclusive regional security frameworks at the Mediterranean-Gulf Summit, tying stability to ending occupation-related humanitarian deterioration in Gaza.

Heat & climate risk: A second Europe-wide heat wave in less than a month pushed parts of Spain and France past 40°C, with France forecasting its hottest day ever recorded and major alerts issued—another reminder that extreme heat is getting more intense as the climate warms. Energy infrastructure: Hitachi Energy won a roughly €770m ($876m) contract with Italy’s Terna and Tunisia’s STEG to build converter stations for the Elmed HVDC submarine link between the two countries, boosting power trade across the Strait of Sicily. Strait of Hormuz pressure: Iran’s proposed up-to-$40bn annual transit fee for ships through Hormuz is drawing Gulf and US pushback, while the UN paused evacuation plans after a reported strike near Oman—raising fresh concerns for maritime safety, environmental risk, and trade costs. Saudi diplomacy: Saudi Foreign Minister Prince Faisal bin Farhan joined a GCC-US ministerial meeting in Manama focused on protecting GCC interests in US-Iran talks and safeguarding maritime security and free trade through Hormuz. Saudi environment & nature: A Saudi wildlife center documented rare fish migration, adding to growing local efforts to track biodiversity in the Kingdom.

GCC–US Diplomacy: Saudi Foreign Minister Prince Faisal bin Farhan joined a GCC-US ministerial meeting in Manama with US Secretary of State Marco Rubio, focusing on regional security, the Strait of Hormuz, and ensuring any US-Iran arrangements protect GCC interests and maritime trade. Climate Finance Pressure: France urged the World Bank not to drop its climate lending target, warning that a US push to refocus on “core” development could weaken climate action. Saudi Agriculture & Food Supply: Saudi Arabia’s Ministry of Environment, Water and Agriculture said 1.3 million pomegranate trees are producing about 39,700 tons annually, supported by the “Sweet in Season” campaign to boost local fruit marketing and farmer returns. Makkah Real Estate Frameworks: Al Majdiah signed a framework deal for an Eastern Hindawiyah project in Makkah with First Avenue and Rikaz, setting fees and incentives tied to costs and sales. Water Security Warning (Texas, not KSA): A report on Corpus Christi highlights how climate-blind planning can make water shortages hit sooner than expected, a reminder for regional water resilience planning.