GANDHINAGAR, India: Air pollution is diminishing India’s capacity to harness power from the sun, experts say, undermining billions being invested in renewables as the energy-hungry giant emerges as a solar superpower.
New research has found the smog and dust that sickens millions across India every year is also sapping solar power generation by more than 25 percent, far beyond levels previously thought.
In the first study of its kind, US and Indian scientists measured how man-made particles floating in the air and deposited as grime on solar panels combined to seriously impair sunlight from converting to energy.
This interference causes steep drops in power generation, they found.
At present levels in India, it could amount to roughly 3,900 megawatts of lost energy — six times the capacity of its largest solar farm, a gigantic field of 2.5 million panels.
“A simple calculation shows that this is a big amount of energy we are going to lose,” Professor Chinmay Ghoroi, who co-authored the paper, said at the Indian Institute of Technology in Gandhinagar.
These huge losses will only compound as India realizes its grand solar ambitions, experts say.
India, the world’s third-largest polluter, is banking on solar to electrify homes for hundreds of millions of its poorest citizens without adding to its sizeable carbon footprint.
At the Paris climate summit in 2015, India pledged cuts to its future emissions and vowed to source at least 40 percent of its energy from renewables by 2030 — a target it is well on track to exceed.
New panels are being installed so fast that India is expected to more than double capacity this year, overtaking Japan as the world’s third-largest solar market.
But with this spectacular growth comes “an exponential rise in the total amount of money lost” because of air pollution, said Mike Bergin, a professor from Duke University in North Carolina, who lead the research published in June.
“We’re talking billions of dollars here, easy,” he said.
Dust has long been a menace for solar projects in desert states like Rajasthan and Gujarat, where robotic wipers are deployed to ensure panels are cleaned after sandstorms.
But the new research confirmed what solar installers had long suspected — that choking smog from cars, coal plants, crop burning and trash fires was particularly adept at bleeding energy.
The grimy coating that man-made pollutants deposit on solar panels is far more effective at blocking light than dust, and trickier to remove by washing, Bergin and Ghoroi found.
This is especially troublesome in northern India, where fine airborne particles from human activity contribute far more than dust to the dire air quality.
Vinay Rutagi, director of solar consultancy Bridge to India, said rooftop panels in Delhi, one of the world’s most polluted cities, produced up to 30 percent less power than the same project just 40 kilometers away.
“The reason for that is the constant haze, the pollution and high dust levels,” Rutagi said.
“There is a huge amount of practical evidence on the ground available in this regard.”
This bodes ill as the government seeks 40 percent of its solar energy from rooftop panels atop industrial zones and urban centers by 2022.
But there is little appetite for gloomy projections as India’s solar sector undergoes an unprecedented boom.
Amid this optimism, new milestones are being surpassed at a dizzying speed.
A behemoth solar park nearing completion in India’s southeastern Andhra Pradesh state will rival the world’s largest.
In May, wholesale solar prices plunged to record lows, cheaper than the coal-powered electricity that overwhelmingly dominates the power grid.
Dr. Andre Noble, an expert on the effect of haze on solar generation, found little interest when he presented his findings at a solar summit in Delhi last month.
“People didn’t pay much attention,” said Noble, who is head of operations and maintenance at Singapore-based Cleantech Solar, which invests heavily in India.
“They might have a gut feeling, but they might think the impact is negligible.”
Air pollution throws shade on India’s solar ambitions
Air pollution throws shade on India’s solar ambitions
Lebanon’s bonds climb as parliament elects first president since 2022
LONDON: Lebanon’s government bonds extended a three-month long rally on Thursday as its parliament voted in a new head of state for the crisis-ravaged country for the first time since 2022.
Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and the move boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.
Lebanon’s battered bonds have almost trebled in value since September when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming the country’s political paralysis.
Most of Lebanon’s international bonds, which have been in default since 2020, rallied after Aoun’s victory was announced to stand between 0.8 and 0.9 cents higher on the day and at nearly 16 cents on the dollar.
They have also risen almost every day since late December, although they remain some of the lowest priced government bonds in the world, reflecting the scale of Lebanon’s difficulties.
With its economy still reeling from a devastating financial collapse in 2019, Lebanon is in dire need of international support to rebuild from the war, which the World Bank estimates to have cost the country $8.5 billion.
(Reporting by Marc Jones and Karin Strohecker Editing by Gareth Jon
Closing Bell: Saudi main index closes in green at 12,097
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 9.01 points, or 0.07 percent, to close at 12,097.75.
The total trading turnover of the benchmark index was SR7.48 billion ($1.99 billion), as 96 stocks advanced, while 133 retreated.
The MSCI Tadawul Index decreased by 3.28 points, or 0.22 percent, to close at 1,510.14.
The Kingdom’s parallel market, Nomu, surged, gaining 251.24 points, or 0.82 percent, to close at 31,027.39. This comes as 56 of the listed stocks advanced, while 32 declined.
The best-performing stock was Nice One Beauty Digital Marketing Co. for the second day in a row, with its share price increasing by 7.69 percent to SR49.
Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise by 6.5 percent to SR14.74, and Abdullah Saad Mohammed Abo Moati for Bookstores Co., which saw a 4.42 percent increase to SR35.45.
Arabian Pipes Co. and Dr. Sulaiman Al Habib Medical Services Group also saw positive change with their share prices moving up by 4.10 percent and 3.89 percent to SR12.70 and SR298.80, respectively.
The worst performer of the day was Salama Cooperative Insurance Co., whose share price fell by 5.88 percent to SR19.52.
Almoosa Health Co. and Al Hassan Ghazi Ibrahim Shaker Co. also saw declines, with their shares dropping by 5.13 percent and 3.91 percent to SR133.20 and SR28.25, respectively.
On the announcements front, Riyad Bank declared its intention to fully redeem its $1.5 billion fixed-rate reset tier 2 sukuk, issued in February 2020, on Feb. 25, 2025.
According to a Tadawul statement, the sukuk originally maturing in 2030, will be redeemed at face value in accordance with the terms and conditions. The redemption, approved by the regulators, will include any accrued but unpaid periodic distributions.
On the redemption date, Riyad Sukuk Limited will deposit the full amount into the accounts of sukuk holders, marking the completion of the issuance. This redemption will conclude the sukuk’s life, with no remaining value post-redemption.
Riyad Bank ended today’s trading session edging up by 0.91 percent to SR27.85.
Rotana eyes growth in smaller Saudi cities amid hospitality expansion
RIYADH: Rotana Hotels is turning its attention to smaller cities in Saudi Arabia as part of its ambitious growth strategy to strengthen its presence in the Kingdom.
Speaking on the sidelines of the third Saudi Tourism Forum, the firm’s Chief Operating Officer Eddy Tannous told Arab News the company is engaging with tourism authorities, development funds, and private investors to explore opportunities in emerging destinations such as Al-Baha and Asir.
Rotana has previously announced its plans to develop nine new properties in Saudi Arabia, five of which are scheduled to open in 2025. This follows the launch of three hotels in 2024, including Nova M, the first Edge by Rotana property, as well as Dar Rayhaan by Rotana in Alkhobar and Al Manakha Rotana in Madinah.
Tannous said: “We have development on properties that will probably open in the next, I want to say, two to five years. Probably six to eight properties in those tertiary cities where it’s becoming a destination that people want to go to as well.”
With Saudi Arabia ranking third globally for international tourist arrival growth in 2024, with a 25 percent increase compared to the previous year, the Kingdom’s hospitality sector is seeing rapid growth.
The company’s goal is to triple its current key count in the Kingdom to 6,000 within the next three years, bolstered by strong demand for hospitality services.
Rotana’s upcoming developments, including Yasmina Rayhaan by Rotana in Riyadh, aim to meet this increasing demand.
“We are a regional brand. We are a brand that grew up in this region, so Saudi Arabia has always been a focus for us. But I think with the announcement of Vision 2030, it became more of a catalyst for us to continue focusing on Saudi Arabia,” Tannous said.
He added: “Saudi Arabia is the region or is the country in this Middle East region that’s growing the fastest and that’s growing with the biggest magnitude from a hospitality standpoint. Our main focus in Saudi Arabia is to focus both on the government sector projects and individual investors.”
Rotana’s expansion strategy is also geared toward major international events, including Saudi Arabia’s hosting of the FIFA World Cup in 2034. This event is expected to attract millions of visitors, creating significant opportunities for the hospitality sector.
Commenting on the company’s plans, Rotana CEO Philip Barnes said in a press release: “We see tremendous potential for expansion in Saudi Arabia. Our ambitious pipeline for KSA underscores our commitment to the hospitality and tourism sectors, both in the Kingdom and regionally, as demand for business and leisure travel soars to new heights in anticipation of major events such as the FIFA World Cup 2034.”
Beyond Saudi Arabia, Rotana is expanding across the Middle East, Africa, Eastern Europe, and Turkiye, where it currently operates 81 properties. The company has a pipeline of 36 new properties in 22 cities, including its projects in Saudi Arabia.
Rotana is also strengthening its presence in key markets such as the UAE, Turkiye, and Africa, where demand for leisure and business travel is on the rise.
“As a company today, we run 86 properties in the world. Some of our source markets to Dubai and Abu Dhabi, which are two of our biggest markets, include the UK, Germany, and Russia,” Tannous said.
Rotana is also preparing for significant updates to its loyalty program, which are expected to be announced later this year — although details remain under wraps.
“It’s not something I can talk about today, but we will hopefully in 2025,” Tannous said. “The most exciting thing for me right now is what we’re doing on our loyalty program because that will open the door for bank partnerships, credit card partnerships, airline partnerships.”
Rotana’s expansion in Saudi Arabia and beyond reflects its commitment to meeting the growing demand for hospitality services while positioning itself as a leader in both regional and international markets.
Asir region to move from planning phase to delivery in 2025, official says
RIYADH: Saudi Arabia’s Asir region is set to shift from the planning phase to execution in 2025, with several major projects, including the Seven Entertainment Complex, scheduled for completion, according to a senior official.
Speaking to Arab News on the sidelines of the second day of the third Saudi Tourism Forum held in Riyadh from Jan. 7 to 9, Acting CEO of Asir Development Authority Hashem Al-Dabbagh explained that the entity is working with several parties to ensure that the projects in the pipeline progress this year.
This falls in line with the authority’s aim to attract approximately 8 million tourists by 2030.
It also aligns well with the entity’s goal to transform the region into a global destination that will become a world-class tourist hub, both within the Kingdom and internationally, by striking a balance between development and conservation.
Al-Dabbagh said: “2025 is a very exciting year for a number of reasons. Maybe the first one is that the first large project, Seven Entertainment Complex by the airport, will be completed in 2025. So, we launched a number of projects, but this is the first one that should be completed this year. So, we’re very excited about that.”
He added: “Many of our projects underway, which have to do with the planning of the Asir region, should be completed in 2025. So it’s nice to see us transition from planning and ideation to actual investment and execution in this year.”
The acting CEO highlighted that over the past three years, the authority has been working diligently with all counterparts in Saudi Arabia. He underlined that many agreements with key stakeholders, including government entities such as the Ministry of Tourism, the Ministry of Investment, and the Ministry of Culture, have already been signed.
“We’ve already signed with them, and we have ongoing relationships with all these entities, that allow us to see through our mandate,” Al-Dabbagh said.
“It’s also worthwhile to mention that the Asir Development Authority has a mandate to oversee, to coordinate, and to plan and to make sure everything goes well but the actual development on the ground takes place through other entities that either have a development mandate if they’re a public sector or by private sector entities,” he added.
During the interview, the acting CEO also shed light on how the investment sector within the Asir Development Authority works to distill capital regionally.
“So, they have a pipeline and every investment that we are following is in one of five phases, starting from the ideation phase to the operating phase,” Al-Dabbagh said.
He added: “We have been exceeding our targets over the past couple of years. As a matter of fact, if we sum the number of investments that just the investment sector has in the pipeline, it comes out to about SR28 billion ($7.45 billion), not including PIF (Public Investment Fund) investments. PIF investments are larger than that amount. So, when you add them together, you get a very large number.”
The acting CEO explained that this figure sums up the investments across all phases.
“Now naturally some of these investments are going to materialize and some of them are going to materialize in a way that is different from what we understand today, and some of them will not. So, that 28 (billion) number is sort of a goal if everything materializes as per the plan,” Al-Dabbagh said.
“Asir is the place to be if you are looking to invest in the tourism sector or adjacent sectors in Saudi Arabia,” he added.
The acting CEO explained that Asir is the only region among Saudi Arabia’s 13 areas with an approved strategy from the central government. The vision of this approach is to establish Asir as a premier year-round destination, leveraging its unique cultural and natural assets.
“This is very intimately related to the tourism strategy of Saudi Arabia,” he said.
Al-Dabbagh also discussed the Kingdom’s hosting of the FIFA World Cup in 2034.
“There are five regions within Saudi Arabia that are going to be hosting this World Cup , and they include Abha. So, Saudi Arabia and its five regions, including Abha, is going to be a host to probably the largest number of visitors coming from an event outside of the religious pilgrimage to Saudi Arabia,” he concluded.
Organized in partnership with the Saudi Tourism Authority and the Tourism Development Fund, the third edition of the forum features over 100 exhibitors.
It is a comprehensive platform for exploring the latest developments in the Kingdom’s tourism sector.
The event also offers visitors insights into major investment projects, prospects to elevate their skills, and avenues for forging collaboration that drives national tourism growth.
Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA
RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 22.6 percent year on year in the third quarter of 2024, totaling SR329.23 billion ($87.8 billion), according to official data.
The Kingdom’s central bank, known as SAMA, revealed that 94.7 percent of these loans were provided by Saudi banks, while finance companies contributed 5.3 percent.
MSME lending represented 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ credit portfolios.
The Saudi government has been actively encouraging financial institutions to allocate at least 20 percent of their loan portfolios to this critical sector, reflecting its strong and continued commitment to fostering business growth and economic diversification in line with Vision 2030.
In the third quarter, medium-sized enterprises received the largest share of credit facilities, totalling 55 percent, or SR181.05 billion.
Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 50.4 percent to SR36.14 billion, despite holding a smaller overall share.
Credit to small enterprises, which made up 34 percent of MSME financing, rose by 30.4 percent to SR112.03 billion during the same period.
The growth of SMEs in Saudi Arabia is driven by government-backed initiatives and Saudi Vision 2030’s ambitious reforms.
Key programs include Kafalah for loan guarantees, Tamweel for connecting SMEs with financiers, and the Saudi Venture Capital Co. for startup investments.
The Indirect Lending Initiative also enhances SME financing through intermediaries.
Regulatory advancements, such as the 2015 Companies Law, NIDLP, and the National Center for Privatization, have improved the business environment.
Vision 2030 aims to boost SMEs’ GDP contribution to 35 percent by enhancing productivity, developing skills, improving infrastructure, and supporting sector diversification.
Monsha’at key figures
The Small and Medium Enterprises General Authority, also known as Monsha’at, drives SME growth by improving access to financing through collaborations with financial institutions and initiatives including the Kafalah Program, which is designed to boost lending.
Monsha’at also champions entrepreneurship, supports business development with specialized training programs, and advocates for regulatory enhancements to create a more business-friendly environment.
According to its third-quarter report, Saudi Arabia saw a significant surge in commercial registrations, which grew by 62 percent year on year to 135,909, with 46.8 percent attributed to female-owned businesses.
This momentum points to MSMEs’ growing role as engines of innovation, job creation, and economic diversification, strengthening the foundation for sustainable, long-term growth.
It highlights increasing entrepreneurial activity and business confidence, with more diverse participation across industries.
The rise in female-owned businesses, in particular, reflects the success of government initiatives aimed at empowering women and fostering inclusivity in the economy, a core objective of Vision 2030.
Regionally, Riyadh led with 39 percent of new commercial registrations, totaling 53,150, followed by Makkah with 18 percent, or 24,782, and the Eastern Province with 15 percent, amounting to 19,841.
