Catalonia's Cava industry is facing a severe challenge due to the worst drought in memory, with around a third of the vines in the region dead from thirst. Celler Cairons has lost about a quarter of its vines, and the next two months are critical for the survival of the remaining plants. The drought has affected both large and small producers, with the older vines suffering more due to their deeper roots. The impact of the drought on production volumes will likely be seen next year. Local residents and producers are hoping for more rain to alleviate the situation.

Kuwait's new government, led by Prime Minister Sheikh Ahmad Nawaf al-Ahmad al-Sabah, has announced a four-year programme with 107 projects, including infrastructure developments and the creation of a new sovereign wealth fund named Ciyada. This fund will focus on domestic investments and complement the existing Future Generations Fund and General Reserve Fund managed by the Kuwait Investment Authority. A key challenge for the government is passing a long-stalled public debt law, which is crucial for financing budget deficits. Kuwait has faced budget deficits for most of the past decade, exacerbated by the 2020-2021 oil price drop due to COVID-19. The IMF has suggested phasing out energy subsidies, and the government has three options to address future deficits: raising new revenue, drawing on the Future Generations Fund, or raising debt. However, political opposition and recent ministerial resignations indicate challenges ahead for the government's agenda.

Gulf steel producers are positioned to gain a competitive edge over Chinese and Indian rivals due to their lower-carbon production methods and access to renewable energy and hydrogen. The Gulf's use of electric arc, direct reduced iron technology, which relies on hydrocarbon off-gases and hydrogen instead of coal, results in lower carbon emissions. This is significant as the steel sector accounts for about 8% of global greenhouse gas emissions. The region's steel demand is driven by mega-construction and infrastructure projects, such as Saudi Arabia's Neom project. Global commodities giants like Vale are investing in the Gulf to establish steel decarbonisation hubs. The European Union's Carbon Border Adjustment Mechanism, which taxes embedded emissions, could further enhance the Gulf's cost competitiveness. However, challenges such as the need for desalinated water and competition from countries with more renewable energy in their grids remain.

The article 'Talking Türkiye' by Jonathan Gorvett discusses the political landscape in Türkiye following the re-election of President Recep Tayyip Erdogan and the Justice and Development Party (AKP) for a third term. It highlights the challenges faced by the opposition parties, including the Republican People’s Party (CHP), Iyi (Good) Party, and the Peoples’ Equality and Democracy Party (HEDEP), formerly known as the Peoples’ Democratic Party (HDP). The CHP has replaced its leader with Ozgur Ozel in hopes of revitalizing the party, while the Iyi Party struggles with an identity crisis and defections. HEDEP faces the threat of government intervention in local governance. The article also touches on the broader issues of populism and the crisis of liberal democracy, suggesting that opposition parties need new ideas to effectively challenge the status quo.

Gulf states are significantly expanding their oil refining capacities as part of their diversification strategies and in pursuit of higher value-added products. Despite the move towards net zero and reducing reliance on petroleum and natural gas, these expansions are seen as hedges against future hydrocarbon volatility. Major projects include Kuwait's Az-Zour Refinery, Saudi Arabia's Aramco's Jazan refinery, and Oman's Duqm Refinery, with investments also being made in the green economy to balance emissions. The expansions are expected to continue despite short-term fluctuations in demand and pricing, with the Gulf states benefiting from high oil prices to fund these projects. The article also highlights the integration of refinery output with petrochemical and plastics production, which is less exposed to the energy transition.

Bahrain is restructuring its oil and gas sector by rebranding its oil and gas holding company as Bapco Energies, aiming to improve efficiencies and transition towards a low-carbon future. The reorganization includes integrating various entities under Bapco Energies, such as the Bahrain Petroleum Company refinery and Tatweer Petroleum. Bapco Energies, formerly known as Nogaholding, is crucial for Bahrain's economy, contributing to 70-80% of the government's revenue. Bahrain faces challenges like ageing oil fields, the need to manage public debt, and adapting to the energy transition. The Bapco refinery is undergoing a $7 billion modernization to process heavier crudes and reduce emissions. New gas discoveries and the potential development of the Khalej Al-Bahrain shale oil field are also part of Bahrain's strategy to address its economic and energy challenges. The government is working towards a three-year transition to reorganize the energy sector, focusing on renewables, new technologies, and compliance with a new energy strategy.

The article discusses the current state and future prospects of the aluminium industry, with a focus on the Gulf Cooperation Council (GCC) region. Despite soft global aluminium prices and waning demand, the GCC has become a significant exporter of aluminium, with nearly 8% of the global market share. The region's production capacity has increased dramatically, from 120,000 tonnes in 1971 to approximately 6.1 million tonnes today. The article highlights the GCC's competitive advantage due to cheap natural gas-generated electricity, which has enabled the production of cost-effective aluminium. However, the region relies on imported bauxite and alumina, with limited local production. China's production cap and global decarbonisation efforts may lead to increased demand for GCC aluminium. The article also touches on the potential of recycling initiatives, like the one by Kings Aluminium Industries, to meet future supply needs and reduce emissions.

The article discusses the volatility of copper prices and the potential for price increases due to supply issues and rising demand. The Middle East, particularly the UAE and Saudi Arabia, are major consumers of copper and are investing in local resource development and overseas mining ventures. The region accounts for about 5 percent of global copper consumption but has minimal production capacity. The article highlights the impact of global economic growth, speculation, and political events on copper prices. It also addresses the challenges of recycling copper and the under-investment in new mining projects. The article suggests that copper shortages could arise, prompting Gulf countries to invest in copper exploration and development, with Saudi Arabia's Ma'aden at the forefront.

Oman is investing heavily in renewable energy to become a leading exporter of green hydrogen, dedicating an area the size of Slovakia for solar power projects. The country has signed contracts worth $20 billion with BP, Shell, and Hydrogen Oman (Hydrom) to produce green hydrogen, aiming to export 500,000 tonnes annually. By 2050, Oman's green hydrogen exports could be worth double its current LNG exports. However, challenges such as transportation, regulation, and market development remain. Other Gulf nations are also investing in various types of hydrogen, with strategies differing from Oman's state-involved approach. The global market for hydrogen is still evolving, with potential for local demand to shape the industry in the near term.

Lithium prices have experienced significant volatility, with an 80% drop from 2022 to 2024 due to oversupply and lower-than-expected demand for electric vehicles (EVs), particularly in China. This has implications for the Gulf region, where Saudi Arabia and the UAE are investing in lithium production and EV development as part of their energy transition strategies. Key players in the lithium market include SQM and Albemarle, while Saudi Arabia and the UAE are exploring innovative extraction methods, including seawater and oil well brine. The region's abundant renewable energy resources and low-cost fossil fuels support ambitions to build a robust battery supply chain.