GFH Capital acquires prime UK property

Updated 21 December 2013
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GFH Capital acquires prime UK property

GFH Capital, a fully owned subsidiary of Bahrain based Gulf Finance House, has announced the completion of the acquisition of a prime central London residential property.
Located in Kensington, the property is a Grade II listed building, overlooking the Queens Gate Gardens.
This investment is in line with GFH Capital’s strategy to identify attractive opportunities in developed markets like the UK, where it has already made considerable investments.
Hisham Al-Rayes, managing director of GFH Capital, said: “We are delighted to announce the conclusion of another successful transaction in the UK.”
He said: “The property we have acquired is located in the heart of prime central London, where we expect above average capital appreciation to continue over the medium term.”
He added: “Demand for this type of property is coming from investors all over the world and we expect this dynamic to continue due to the favorable conditions of London.”
Salem Patel, head of investments and board member of GFH Capital, added: “We believe the prime central London residential real estate market will continue to perform strongly.”
Patel added: “However, we also see value and upside potential in other real estate markets such as the US and we expect to make additional investments in these markets as well.”


Global energy sector employment increased by 3.8% in 2023: IEA

Updated 57 min 45 sec ago
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Global energy sector employment increased by 3.8% in 2023: IEA

  • IEA said the sector added 2.5 million jobs worldwide in 2023
  • It released its study at a time when international leaders have rallied in Baku, Azerbaijan, for COP29

RIYADH: The number of jobs in the global energy sector reached 68 million in 2023, representing a 3.8 percent rise compared to the previous year, according to an analysis. 

In its latest report, the International Energy Agency said that the sector added 2.5 million jobs worldwide in 2023, driven by a wave of investment in manufacturing eco-conscious technologies. 

The IEA released its study at a time when international leaders have rallied in Baku, Azerbaijan, for COP29, where discussions are going on to elevate renewable energy growth globally to tackle climate challenges. 

During the opening ceremony of COP29 on Nov. 11, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, affirmed the growth of the renewable sector and said that clean energy infrastructure investments are expected to reach $2 trillion in 2024, nearly double that of fossil fuels.

“The global energy sector has been a powerful engine of job growth around the world in recent years, and as the energy system continues to transform and grow, rising demand for skilled energy workers is a given,” said the IEA’s Director of Sustainability, Technology and Outlooks, Laura Cozzi. 

Clean energy sector leading growth

According to the IEA, employment in the clean energy sector increased by 1.5 million last year and contributed as much as 10 percent of economy-wide job growth in the leading markets for clean technologies. 

The report said that the solar PV industry added over half a million new jobs, spurred by record new installations, while employment in electric vehicle manufacturing and batteries grew by 410,000 as sales reached nearly 20 percent of the global car market. 

Even though several wind manufacturers implemented layoffs as rising costs contributed to a slower-than-anticipated offshore project pipeline, total employment in the sector still climbed as a record number of new projects entered construction. 

The IEA said that jobs in the oil and gas supply sector increased by around 3 percent, or 600,000, in 2023 after a period of cautious post-pandemic rehiring, while global coal employment fell for the third year in a row, declining by around 1 percent year on year. 

“Global coal employment fell in both supply and power, largely due to continued mining productivity gains and a slowdown in the pipeline of new coal-fired power plants compared with the highs of the last decade,” said the report. 

Employment in manufacturing vehicles with internal combustion engines rose by 440,000 positions, just outstripping job additions in EVs. 

In China, clean energy made up over 90 percent of energy job growth, while fossil fuels accounted for 80 percent of the gains in the Middle East.

The analysis also said that the growth in energy jobs was led by manufacturing — diverging from previous years when it was generally led by construction and installation. 

“This largely reflects the 70 percent rise in clean energy manufacturing investment in 2023 to $200 billion as firms responded to increasing demand for clean energy technologies and new policies,” added IEA. 

Skill shortage continues in energy sector 

According to the report, shortages of skilled workers remain a major concern for employers looking to hire in the global energy industry.

The IEA said that the lack of skilled workers in many parts of the industry — particularly those requiring high degrees of specialization, such as grids and nuclear power — remains a substantial bottleneck for the sector. 

A survey conducted by the agency found that over 190 energy employers across 27 countries reported plans to hire but had difficulties finding qualified applicants for nearly all occupation categories. 

“Governments, the private sector, and educational and training institutions must work together to improve the hiring pipeline, which will play an important role in shaping our energy future,” said Cozzi. 

The report added that intense competition for talent in clean energy sectors is prompting firms to hire aggressively in anticipation of future growth — a tactic that could prove effective but may also leave some companies exposed to uncertainties related to project flows and changing policies. 

The analysis said many firms facing shortages of qualified applicants are also increasing on-the-job training to deliver these skills. 

According to the IEA, countries transitioning to clean energy are experiencing substantial employment growth in the sector. In 2023, job creation in clean energy accounted for over 10 percent of overall job growth in China and 4 to 6 percent in economies such as the US, EU, and Japan.

The analysis added that clean energy’s share of new jobs is below 2 percent in many emerging and developing economies. 

In September, another report released by the US Department of Energy revealed that the clean energy sector in the country added 142,000 jobs in 2023, representing a rise of 4.2 percent compared to the previous year. 

In October, the Indian government said that the total number of jobs in the country’s renewable energy sector reached over 1 million by the end of 2023, led by hydropower which provides 453,000 employment opportunities in the Asian nation. 

The IEA added that wages in the energy sector are rising, reflecting increasing competition for skilled workers. 

“After real wages fell in many regions in 2022, growth resumed in much of the world in 2023, though absolute wages generally remain below pre-pandemic levels. Wages for energy-specific roles have broadly fared better than those for more generic occupations relevant to the energy sector, notably for technicians,” said the report. 

The analysis revealed that the rising wages in the energy sector are partially a response to skills gaps, as firms aim to attract new workers from within and outside the industry. 

The IEA added that clean energy wage increases were, on average, greater than those in fossil fuels, even in major oil, gas, and coal-producing countries. 

Future outlook

According to the IEA, employment in the energy sector is set to grow by 3 percent in 2024, a slowdown compared with last year due to the impacts of tight labor markets, elevated interest rates, and changes in the expected pipeline of new energy projects.

“While clean energy firms seem set to take more bullish positions on hiring in anticipation of growth, less diversified fossil fuel firms have been remaining cautious for now. As a result, fossil fuel job growth is expected to stall in 2024,” said the agency. 


Agriculture key to climate change mitigation, experts say

Updated 13 November 2024
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Agriculture key to climate change mitigation, experts say

BAKU: Agriculture should be a central focus of global efforts to mitigate climate change, experts told Arab News on the sidelines of the COP29 UN climate change conference in Baku, Azerbaijan.

“Agriculture is a victim of climate change because in agriculture we have the most vulnerable and low-income people,” Aditi Mukherji, director of climate change adaptation at the Consortium of International Agricultural Research Centers, told Arab News.

She added: “We have 500 million smallholder farmers who are getting affected by climate change. That is through droughts, floods, extreme rainfall and high temperatures. They’re losing their production. They’re losing their livestock, their crops, everything.”

According to Mukherji, agriculture also contributes to about one-third of overall global greenhouse emissions, and lowering this will reduce pressure on the agricultural system.

“If you take the whole agrifood system, that is from the time of production all the way to consumption and everything in between, like the pre-processing, the processing, the industrial part of it, it contributes about one-third, 33 percent of the global greenhouse gas emissions,” she said.

“One very low-hanging fruit is reducing loss and waste. So, when in the food system, almost one-third of the food is overall wasted or lost in production or during the consumption process. We buy food that we do not eat, reducing that would reach a huge amount of reduction in greenhouse gas emissions,” Mukherji said.

Emissions from agricultural systems can be mitigated if technologies such as solar energy and recycled water are implemented. Abdulrahman bin Shalhoub

Emissions from agricultural systems can also be mitigated if technologies such as solar energy and recycled water are implemented on a wider scale, Maimunah Sharif, mayor of Kuala Lumpur, told Arab News.

“In Kuala Lumpur we are now doing composting and we are also doing urban farming. So, we are encouraging the community to be self-sufficient; we are using the composting and using the small areas in urban farming at the same time, using technology and hydroponics,” Sharif said.

Agriculture in developing countries has suffered from the impacts of climate change. In Senegal, the environmental crisis has led the country to secure food for its population by importing produce from other countries.

Baba Drame, technical adviser on sustainable development at Senegal’s Environment Ministry, told Arab News: “Senegal is a very vulnerable country. As you may know, we are an LDC (least-developed country) and agriculture is one of the most important activities for the development of our country.

“The most important parts of the foods people use in my country are imported from other countries. We do our best in order to develop agriculture, mainly production of rice, corn and so on.

“But we are well affected by climate change because all our food system is based on the rain,” he added.

According to Drame, for the last two years, the rain in Senegal has been irregular, leaving the country facing food insecurity.

Transforming food systems involves rethinking consumption patterns. The global food system is heavily reliant on animal agriculture, which contributes significantly to emissions.

Shifting toward plant-based diets and reducing food waste can dramatically decrease the carbon footprint associated with food production.

“In many parts of the world, particularly in the high-income countries, there is a very high consumption of animal-sourced proteins, and those are very high causes of emissions. So, eating a more sustainable, balanced diet that is plant-based would be a very good source of reducing emissions,” said Mukherji.


ACWA Power’s Al-Shuaibah solar project begins commercial operations in Saudi Arabia

Updated 13 November 2024
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ACWA Power’s Al-Shuaibah solar project begins commercial operations in Saudi Arabia

  • ACWA Power owns a 35.01% stake in the initiative
  • Al-Shuaibah project’s success reflects ACWA Power’s growing investment and development portfolio

RIYADH: Saudi energy leader ACWA Power has achieved full commercial operation of its Al-Shuaibah 1 Solar Photovoltaic Project, a 600-megawatt renewable initiative.

ACWA Power received formal notice on Nov. 12 from the project company saying that the Saudi Power Procurement Co. has granted the commercial operation certificate for the entire initiative capacity, clearing the way for full-scale production, according to a statement on the Saudi Stock Exchange. 

The Al-Shuaibah 1 Solar Project aligns with ACWA Power’s vision to contribute to the Kingdom’s renewable energy targets and underscores its role as a leading provider of sustainable energy solutions in the region. 

ACWA Power owns a 35.01 percent stake in the initiative, and the firm anticipates that the financial impact of this milestone will be reflected in its fourth-quarter financial results for 2024.

The achievement comes following a particularly successful year for ACWA Power. For the first nine months of the year, the company reported a robust 16 percent increase in profits, underpinned by growth in its power and water production operations. 

Net profit attributable to equity holders reached SR1.25 billion ($334 million), compared to the same period in 2023, supported by a 12.5 percent rise in operating income, which hit SR2.36 billion. 

The performance was largely driven by strategic financial moves, including an investment profit from restructuring a project and a capital recycling gain, enabling ACWA Power to efficiently reinvest capital for further growth.

The Al-Shuaibah project’s success reflects ACWA Power’s growing investment and development portfolio. Over the past nine months, the company has achieved financial closure on seven major undertakings with a combined worth of SR31 billion. 

These include initiatives in Saudi Arabia, such as the Taiba and Qassim Combined Cycle Gas Turbine projects, which are expected to enhance the Kingdom’s power grid stability and efficiency. 

Other recent undertakings include the Tashkent Solar PV project in Uzbekistan, part of ACWA Power’s broader commitment to renewable energy development in Central Asia, and the Hassyan Seawater Reverse Osmosis plant in the UAE, which is aimed at bolstering the country’s water security and desalination capabilities.

ACWA Power has been working internationally, cementing its global presence and expanding its investment footprint, in addition to its operational achievements.

At the Future Investment Initiative in Riyadh in October, the company signed four agreements valued at a combined SR6.69 billion, enhancing its capital base and project pipeline. 

The contracts include a $690 million framework deal with the National Bank of Kuwait, providing corporate finance facilities that will support ACWA Power’s projects in the Kingdom, Kuwait, and other targeted markets. 

Further diversifying its financing sources, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund solar projects in Uzbekistan. 

Uzbekistan has emerged as a key market for ACWA Power in recent years, with the company playing a central role in the country’s transition toward renewable energy.

Rounding out its expansion efforts, ACWA Power entered into a $54 million research and development agreement with China’s Lujiazui Administration Bureau, targeting innovation in advanced energy solutions. 

The research and development pact will establish a center in Shanghai focused on advancing technologies in solar, wind, and energy storage, as well as green hydrogen and desalination areas that are pivotal to addressing global energy and water challenges.


COP29: Czech Republic, Italy push for increased nuclear power

Updated 13 November 2024
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COP29: Czech Republic, Italy push for increased nuclear power

RIYADH: Nuclear power is essential to achieving global climate goals as it provides a clean and safe energy source, world leaders stated at COP29 in Baku. 

Speaking on the second day of the summit’s High-Level Segment, the Czech Republic’s Prime Minister Petr Fiala emphasized the importance of nuclear power for the future, adding that his country is prepared to assist other nations in advancing this form of energy. 

“We will discontinue coal, and we will push for renewables and nuclear power. Nuclear power is essential to meet our climate goals, as it produces extremely clean energy and is also very safe. The Czech Republic has over 50 years of experience in nuclear power, and we are ready to assist any country,” said Fiala. 

He also warned that climate change could worsen critical global issues, including health, poverty, and hunger, advocating for collective resilience. 

“We must not give up. The Czech Republic is ready to do its part to prevent suffering and increase the chances for a good life for all,” he added. 

Italian Prime Minister Giorgia Meloni echoed similar sentiments, calling for a united global effort to combat climate change for the sake of future generations. 

She also emphasized that embracing new technologies and energy sources, such as nuclear power, is key to achieving climate goals. 

“In Dubai, we set ambitious goals, tripling the use of renewables by 2030. Reaching these goals requires everyone’s cooperation and adequate financial support,” said Meloni. 

She continued: “Technology neutrality is the right approach, and currently, there is no single alternative to fossil fuels. Population growth will increase the demand for energy, so we need an energy mix in the transition process. We must use all energy sources, including nuclear fusion in the future.” 

Greek Prime Minister Kyriakos Mitsotakis highlighted Greece’s role in energy transition, with nearly 50 percent of its electricity now derived from wind and solar, and emissions down 45 percent since 2005. 

“Our emissions are down 45 percent compared to 2005. Lignite once accounted for more than 50 percent of our power generation, but its share is now just 6 percent. We now rely on wind and solar for almost half of our electricity. We are insulating our houses and building a carbon capture value chain for our industry,” he said. 

Greek Prime Minister Kyriakos Mitsotakis. Supplied

Mitsotakis acknowledged Europe’s leadership in the green transition, as it accounts for only 6 percent of global emissions, but urged greater resources to counter “unprecedented climate shocks.” 

“We cannot focus so much on 2050 that we forget 2024. We need more resources to prepare to respond in time, to save lives and livelihoods and to help people and communities rebuild after disasters,” said Mitsotakis. 

The Greek prime minister outlined four urgent priorities for Europe: recognizing the trade-offs of energy transition, encouraging regulatory flexibility, unifying the European energy market, and supporting industry adaptation to climate goals. 

“Each country must choose its own ambitious path to achieve climate targets. We must allow innovation to do its work,” he noted. 

Croatian Prime Minister Andrej Plenkovic also emphasized Croatia’s commitment to decarbonizing its energy system and accelerating renewable adoption. 

“Our achievements in the renewable energy sector show our dedication. Our efforts show that economic growth and environmental stability can coexist,” said Plenkovic. 


Oil Updates – market sees losses on tight supply but cloudy demand caps gains

Updated 13 November 2024
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Oil Updates – market sees losses on tight supply but cloudy demand caps gains

SINGAPORE: Oil prices edged up on Wednesday on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.

Brent futures rose 17 cents, or 0.24 percent, to $72.06 a barrel by 7:20 a.m. Saudi time, while US West Texas Intermediate crude futures gained 14 cents, or 0.21 percent, at $68.26.

“Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly,” ANZ analysts said in a note.

But falling demand projections and weakness in major consumer China continued to weigh on market sentiment.

“We may expect prices to consolidate around current levels for longer,” said Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.

“The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, coupled with the prospects of higher US oil production with a Trump presidency and looming OPEC+’s plans for an output raise,” Yeap added.

In its monthly report on Tuesday, the Organization of Petroleum Exporting Countries said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month, mostly due to weakness in China, the world’s biggest oil importer.

Oil prices settled up 0.1 percent on Tuesday following the news, after falling by about 5 percent during the two previous sessions.

OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd.

The International Energy Agency, which has a far lower view, is set to publish its updated forecast on Thursday.

“The re-election of former President Trump is unlikely to materially affect oil market fundamentals over the near term, in our view,” Barclays analysts wrote.

“Drill, baby, drill: this is likely to underwhelm as a strategy to drive oil prices materially lower over the near term” given that the stock of approved permits actually rose under the Biden administration, the analysts said.

However, markets would still feel the effects of a supply disruption from Iran or a further escalation between Iran and Israel, according to Barclays.

Donald Trump’s expected secretary of state pick, US Senator Marco Rubio, is known for his hard-line stance on Iran, China and Cuba. Tighter enforcement of sanctions on Iran could disrupt global oil supply, while a tougher approach to China could further weaken oil demand in the world’s largest consumer.

Two US central bankers said on Tuesday that interest rates are acting as a brake on inflation that is still above the 2 percent mark, suggesting that the Federal Reserve would be open to further interest rate cuts.

The Fed cut its policy rate last week by a quarter of a percentage point to the 4.50 percent-4.75 percent range. Interest rate cuts typically boost economic activity and energy demand.

US weekly inventory reports have been delayed by a day following Monday’s Veterans Day holiday. The American Petroleum Institute industry group data is due at 00:30 a.m. Saudi time on Thursday.

Analysts polled by Reuters estimated on average that crude inventories rose by about 100,000 barrels in the week to Nov. 8.