Heat the olive oil in a saucepan over medium heat. Add the rice and cook while stirring until several grains are golden.
Add the garlic when the rice is almost browned and cook briefly. Pour in the water and chicken broth.
Add the onion, tomato sauce, diced tomato, cumin, chili and salt, then stir well. Bring the liquid to a gentle boil, reduce the heat to medium-low and cover the pan with a tight-fitting lid.
Cook for 20 to 30 minutes without stirring or repeatedly lifting the lid. Check the rice after 20 minutes and continue cooking if liquid remains or the grains are still firm.
Remove the pan from the heat once the rice is tender and the liquid has been absorbed. Leave the rice covered for 10 minutes, remove the chili, fluff with a fork and serve hot.