LAUNCESTON, Australia: China’s determination to tackle its choking pollution by cutting steel and coal capacity should be a long-term negative for exporters of iron ore and coal to the world’s biggest commodity importer, but the reality is likely to be far more nuanced.
“We will make our skies blue again,” Premier Li Keqiang told the opening of the Parliament on Sunday. That is an unequivocal statement that gives political impetus to Beijing’s plans to shutter more excess steel and coal capacity.
The policy-making National Development and Reform Commission (NDRC) said in a report to the Parliament that it aims to cut steel capacity by 50 million tons this year and coal output by more than 150 million tons.
These targets form part of an overall plan to cut up to 150 million tons of steel capacity and 800 million tons of coal by 2020. The government also announced it wants to cut energy consumption per capita by 3.4 percent and curb carbon intensity by 4 percent in 2017.
Assuming that the actual capacity closures achieved are in line with the targets, where does that leave imports of iron ore and coal?
For iron ore, much will depend on whether capacity cuts actually result in lower output, or whether production is maintained at above 800 million tons a year, as happened in 2016. Last year, steel capacity cuts were mainly in older, less efficient mills, many of them already offline.
Steel output actually rose 1.2 percent last year to 808.4 million tons, resulting in higher imports of iron ore, as many domestic mines remained shut given the weak prices of prior years.
The rising iron ore price may well tempt domestic mines to re-open, but this is far from certain and may not happen to an extent that would force down imports.
Beijing wants economic growth of 6.5 percent in 2017, slightly down from the 6.7 percent achieved last year, when the target was 6.5-7 percent. But it also appears that the government will again try to emphasize growth in consumption, which may limit demand growth for steel.
With steady steel output a likely best-case scenario for 2017, the possibility of domestic iron ore mines restarting and record high port inventories of imported iron ore, it seems hard to construct a case for the price to continue rallying.
The main positive for imported iron ore is that it is considerably higher quality than domestic output, and therefore requires less coal-fired energy to convert it into steel.
While it is possible to process domestic iron ore to reach levels around 62 percent, a quality common for imported ore, this is a more costly process, which will undermine the economics of re-opening domestic mines.
For coal, quality becomes a factor as well. If the government is successful in cutting coal output, it is likely that power stations, steel mills and other industrial users will have to turn to imports to ensure they have adequate supplies. Imports are also likely to be more competitive as supply restrictions push up the price of domestic grades.
It is possible that Beijing will cut coal output faster than it can arrange alternative power sources, such as natural gas generation for electricity and heating for buildings.
Imported coal could meet some of the shortfall, especially in the industrial southeast of China, which has a lesser pollution problem than the northeast, which is home to the bulk of the steel industry.
Coal imports grew 25.2 percent in 2016 to 255.51 million tons, allowing China to reclaim its status as the world’s biggest importer of the fuel from India. The big winner last year was Indonesia, with a 38.1 percent surge in imports by China, much of that being low-rank coal.
This may be at risk from stricter controls on pollution, although it is likely that Indonesian cargoes will remain popular for blending with domestic supplies.
But it is also likely that higher-grade coal from suppliers such as Australia will see increased demand, especially if China does halt imports from its neighbor North Korea as part of international efforts to contain the isolated state’s nuclear weapons program.
North Korea’s anthracite coal is mainly used for sintering, a stage in steelmaking prior to using the blast furnace and in the manufacture of ceramics. While it would be possible for the Chinese domestic coal industry to replace the 22.5 million tons imported last year from North Korea, it may struggle if Beijing places restrictions on local production. Overall, it is poised to be another good year for coal exporters to China, although in the longer term the picture becomes less rosy as ultimately Beijing appears committed to using less of the polluting fuel.
n Clyde Russell is a Reuters columnist. The opinions expressed here are his own.
China’s steel, coal curbs a double-edged sword for imports
China’s steel, coal curbs a double-edged sword for imports
Airports in GCC are turning stopovers into tourism growth
- Governments and airport operators are turning aviation as a central pillar of tourism and economic strategy
CAIRO: Once defined by fleeting layovers and duty-free corridors, airports across the Gulf Cooperation Council are increasingly gateways to short-stay tourism, driving non-oil growth, hospitality revenues and job creation.
Across the region, governments, airlines and airport operators are treating aviation not merely as a transport sector but as a central pillar of tourism and economic strategy. Through streamlined visa regimes, airline-led stopover programs and sustained investment in airport infrastructure and technology, GCC countries are turning transit passengers into visitors.
“Across the GCC, destinations have shifted from functioning primarily as global transit hubs to positioning themselves as places travelers actively choose to visit, even for short stays during onward journeys,” Nicholas Nahas, partner at Arthur D. Little, told Arab News.
Airports in the Middle East are investing heavily in biometric processing systems, e-gates and digital border controls designed to shorten waiting times and improve passenger flow. These upgrades, backed by coordinated public-private initiatives, are narrowing the gap between arrival and exploration, making short stays viable even for passengers transiting for less than 48 hours.
Unified GCC visa
Two years after its initial proposal, the long-discussed unified GCC tourist visa is moving through final coordination stages, a development expected to further accelerate tourism spending linked to stopovers.
Looking ahead, the visa could allow the region to function as a single tourism corridor. Robert Coulson, executive adviser for real estate at Accenture, said the next phase is about regional continuity. “The next leap for the GCC is making the region feel like one seamless journey while differentiating each stop with a distinct identity,” he told Arab News.
First proposed in 2023 and approved in principle in 2024, the visa is designed to allow travel across Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE under a single permit. Analysts say Saudi Arabia is positioned to be among the biggest beneficiaries, given its scale, expanding destination portfolio and growing aviation capacity.
The unified visa is expected to complement existing stopover initiatives by allowing travelers to combine short visits to Saudi Arabia with trips to Dubai or Doha, effectively turning the Gulf into a single multi-country itinerary rather than a series of isolated transit points.
Saudi aviation surge
Saudi Arabia’s aviation-driven tourism growth has accelerated rapidly. The Kingdom welcomed an estimated 122 million visitors in 2025, moving closer to its Vision 2030 target of attracting 150 million tourists annually.
“GCC travel hubs have stopped selling connections and started selling experiences,” Coulson said. “They’ve cracked the stopover-to-stayover model, turning a layover into a mini-holiday rather than dead time.”
In January, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, said international destinations served from Saudi Arabia increased to 176 in 2025, while the Kingdom remained home to some of the world’s busiest air routes.
He credited this performance to the “unlimited support” of the Kingdom’s leadership, identifying aviation as a key enabler of Vision 2030 and broader economic diversification.
Saudi Arabia’s newest airline, Riyadh Air, is expected to contribute more than $20 billion to non-oil gross domestic product and create over 200,000 direct and indirect jobs, underscoring aviation’s expanding economic footprint.
A key pillar of Saudi Arabia’s strategy has been the introduction of a digital stopover visa in 2023, allowing transit passengers to enter the Kingdom for up to 96 hours. The initiative enables short visits for Umrah, trips to Madinah or exploration of the country’s cultural and historical sites. The policy reflects a broader regional effort to turn time spent between flights into economic activity beyond the airport terminal, particularly in hospitality, transport and cultural tourism.
Short-stay shift
This evolution has been driven by global connectivity, simplified visa access and the ability to deliver high-quality experiences within a 24-to-72-hour window. The UAE, particularly Dubai, was the earliest and most established example of this transition, converting a growing share of its transit traffic into visitors through airline-led stopover packages, flexible visa categories and dense, short-stay-friendly attractions.
Dubai International Airport handles more than 85 million passengers annually. Curated stopover products combining hotel stays with cultural and entertainment experiences have helped transform transit traffic into leisure demand. Direct metro access and streamlined entry processes have further reduced friction. As a result, Dubai welcomed around 19 million international overnight visitors in 2025.
Other GCC destinations have since adopted similar models. Abu Dhabi expanded stopover offerings through its national carrier, promoting entertainment and cultural districts as compelling short-stay experiences. Qatar embedded stopover tourism into its national tourism strategy, converting transfer traffic at Hamad International Airport into city stays. Saudi Arabia expanded its tourism offering through its 96-hour digital visa linked to onward flights.
A smooth transit experience is often the deciding factor in whether passengers remain airside or choose to explore. Fast entry processes, intuitive airport design and reliable airport-to-city connectivity can turn even a six- to eight-hour layover into usable time rather than idle waiting.
Under Vision 2030, Saudi Arabia has invested heavily in airport expansion, digital border processes and urban mobility projects designed to shorten the distance between arrival and experience. Airline stopover platforms, transport apps and airport-based destination messaging increasingly reduce uncertainty and enable spontaneous exploration.
Beyond transit traffic, Nahas said tourism growth across the GCC has been driven by integrated destination ecosystems. Successful destinations are designed end-to-end — from trip planning and arrival through accommodation, mobility, experiences and departure — requiring coordination across tourism authorities, airlines, airports, transport providers and experience operators.
Designing destinations
For developers shaping the region’s next phase of tourism growth, the focus has shifted toward creating destinations that capture travelers from the moment they arrive.
Sultan Moraished, group head of technology and corporate excellence at Red Sea Global, said next-generation destinations are being designed to resonate with global travelers beyond a flight connection.
“As we design and build next-generation destinations, our focus is always on creating experiences that resonate with global travelers from the moment they arrive to when they choose to explore beyond a flight connection,” he told Arab News.
Moraished said offering experiences travelers cannot find elsewhere, from cultural immersion to nature-based activities, creates compelling reasons to extend visits beyond simple transit. He added that collaboration across aviation, hospitality and destination authorities ensures that every part of the journey is aligned with a shared vision for tourism growth.
Looking ahead, Moraished said the intersection of innovation and hospitality will continue to open new pathways, from smart digital experiences to regenerative tourism practices that appeal to increasingly conscious travelers and encourage repeat visitation.
Experience economy
Airports have shifted from being standalone infrastructure assets to functioning as world-class distribution engines for cities and destinations. Investments in gateway airports have made them part of the destination brand promise.
Tourism operates as a continuous conversion funnel, Coulson said. Every step removed between the flight gate and the city increases the likelihood that travelers will leave the terminal and spend money locally. Fast connections, predictable baggage handling and clear wayfinding reduce perceived risk, while simplified transit visas make spontaneity possible.
A unified GCC tourist visa could unlock longer stays and multi-country itineraries, supported by investment in walkable districts, waterfronts and climate-smart design.
Taken together, the transformation of transit hubs into tourism powerhouses reflects a broader shift in how the Gulf approaches aviation-led growth. Airports are no longer just points of passage but economic gateways where short stopovers translate into tourism spending, jobs and long-term diversification.
