LONDON: The International Energy Agency (IEA) has raised its forecasts for renewable energy over the next five years following a record 2016, mainly driven by a surge in solar photovoltaic (PV) capacity in China, India and the US.
In its medium-term renewables market report, the IEA expects global renewable electricity capacity to rise by more than 920 gigawatts, or 43 percent, by 2022, due to supportive policies for low-carbon energy and cost reductions for solar PV and wind.
The projected growth is 12 percent more bullish than the IEA’s forecast last year.
In 2016, net additions to renewable energy capacity — including hydropower, solar, wind, bioenergy, wave and tidal — set another world record, growing by 165 gigawatts (GW), 6 percent more than in 2015, the report said.
Solar PV capacity grew by 50 percent to reach more than 74 GW last year and it was the first time solar PV additions rose faster than any other fuel, surpassing the net growth in coal.
“We see renewables growing by about 1,000 GW by 2022, which equals about half of the current global capacity in coal power, which took 80 years to build,” Fatih Birol, the IEA’s executive director, said in a statement.
“What we are witnessing is the birth of a new era in solar PV. We expect that solar PV capacity growth will be higher than any other renewable technology through 2022,” Birol added.
The Paris-based IEA, the West’s leading energy forecaster, had been criticized by environment campaigners in previous years for underestimating the growth of renewables and over-emphasizing the continued role of fossil fuels.
The agency sees renewable power generation rising by more than a third to 8,169 terawatt-hours (TWh) in 2022 — from around 6,012 TWh in 2016 — which is equivalent to the combined electricity consumption of China, India and Germany.
Renewables will account for 29 percent of the global energy mix in five years’ time, compared to the 24 percent forecast last year.
“While coal remains the largest source of electricity generation in 2022, renewables close in on its lead. In 2016, renewable generation was 34 percent less than coal but by 2022 this gap will be halved to just 17 percent,” the report said.
China will be responsible for the largest amount of global renewable capacity growth, driven by strong government targets, economic incentives and air pollution concerns.
Despite policy uncertainty, the US will remain the second-largest renewables growth market, mainly due to tax incentives and state-level policies for solar PV, the IEA said.
India’s renewable electricity growth could surpass the European Union’s by 2022 for it to become the joint second-largest growth market alongside the US as it is seen more than doubling its current capacity.
— Reuters
Solar drives rise in global renewable energy forecast
Solar drives rise in global renewable energy forecast
Closing Bell: Saudi main index closes in green at 11,970
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 263.98 points, or 2.26 percent, to close at 11,970.19.
The total trading turnover of the benchmark index was SR6.18 billion ($1.65 billion), as 239 stocks advanced, while 14 retreated.
The MSCI Tadawul Index increased by 6.13 points, or 0.41 percent, to close at 1,490.20.
The Kingdom’s parallel market, Nomu, also rose, gaining 374.70 points, or 1.22 percent, to close at 30,988.44. This comes as 56 stocks advanced, while 27 retreated.
The best-performing stock was Umm Al Qura for Development and Construction Co. with its share price surging by 14.19 percent to SR23.98.
Other top performers included Allied Cooperative Insurance Group, which saw its share price rise by 9.13 percent to SR13.86, and Nama Chemicals Co., which saw a 8.98 percent increase to SR30.95.
Gulf General Cooperative Insurance Co. saw the biggest decline of the day, with its share price slipping 2.60 percent to SR9.
The Co. for Cooperative Insurance at SR139, down 1.56 percent, and Astra Industrial Group at SR151, down 1.31 percent, both saw declines.
On the announcement front, Rawasi Albina Investment Co. reported its 2024 financial results, posting net profits of SR7.4 million, a 68.4 percent drop from the previous year. In a statement on Tadawul, the company attributed the decline to a reduced gross profit margin.
Saudi Fisheries Co. reported a net loss of SR40.9 million for 2024, an improvement from SR119.9 million the previous year, reflecting a 65.8 percent reduction. SFICO attributed the reduction to lower farm-related expenses for shrimp and fish production, a decline in operating costs amid reduced business activity, and a 27 percent drop in SG&A expenses.
Additionally, the reversal of a SR7.6 million impairment for non-financial assets contributed to the improvement, the firm said in a Tadawul statement.
However, the net margin remained negative due to fixed farm costs incurred after harvesting, increased consultancy expenses related to capital restructuring, and the recognition of SR8.98 million in provisions for inventory, supplier advances, and trade receivables.
The firm’s shares traded 2.41 percent higher on the main market to close at SR102.
Eastern Province Cement Co. also announced its annual financial results for last year. The company’s net profit surged to SR248 million from SR196 million in the previous year.
In a statement, the company said that the increase was driven by higher cement sales in both quantity and value, along with a rise in precast sales.
Additionally, reduced losses from the share in an associate company’s results, lower other expenses, realized gains from the sale of investments at fair value through profit or loss, and a decrease in zakat expenses contributed to the overall improvement.
The firm’s shares traded 4.26 percent higher on the main market to close at SR35.50.
Egypt’s economy expands 4.3% in second quarter, says minister
RIYADH: Egypt’s economy grew 4.3 percent in the second quarter of 2024-25, accelerating from 2.3 percent a year earlier, driven by structural reforms and rising private sector investment, Planning Minister Rania Al-Mashat said.
The improved performance reflects the government’s fiscal and monetary adjustments alongside a reduction in public investment, which Al-Mashat said has helped stabilize the economy and drive growth.
The minister previously forecast 4 percent growth for the full fiscal year, highlighting Egypt’s focus on improving its investment climate and securing $4.2 billion in macroeconomic support from global partners.
In a statement posted on the government’s official Facebook page, she said: “This is driven by structural reforms aimed at diversifying sources of growth and increasing the competitiveness of the Egyptian economy, which was evident in the strong performance of productive sectors such as manufacturing, tourism, and communications.”
Al-Mashat added that the government is working to shift toward tradable sectors like manufacturing to create a more diversified and sustainable economy, strengthening Egypt’s ability to navigate global economic challenges.
She also highlighted the positive outlook for gross domestic product growth, supported by ongoing structural reforms and economic diversification.
Non-oil manufacturing led economic growth, expanding by 17.74 percent — a sharp turnaround from an 11.56 percent contraction in the same period last year — driven by increased production and faster customs clearance.
The tourism sector maintained its strong performance with an 18 percent surge, while private investment rose, making up more than half of total investments. Public investment, however, declined by 25.7 percent.
The Information and Communications Technology sector grew by 10.4 percent, supported by digital infrastructure expansion and rising demand for services.
Despite ongoing geopolitical tensions affecting Suez Canal activity and a slowdown in the extraction sector, Al-Mashat underscored that economic reforms remain key to building a more competitive, sustainable economy and bolstering investor confidence.
She noted that net exports turned positive in the second quarter, driven by growth in commodity and service exports.
In January, Al-Mashat reiterated the government’s focus on disciplined investment management, stating that the public investment budget for the year is capped at 1 trillion Egyptian pounds ($19.78 billion), prioritizing projects that are at least 70 percent complete.
Between 2020 and 2024, Egypt’s private sector secured $14.5 billion in concessional development financing from global partners. For the first time, private sector access to international soft financing surpassed that of the government in 2024, Al-Mashat noted at that time.
She also revealed that negotiations are ongoing with the EU and other international partners for a second phase of macroeconomic support, including €4 billion ($4.10 billion) in budget aid and €1.8 billion in investment guarantees.
CMA proposes easing investor criteria for Nomu to boost participation, liquidity
JEDDAH: Saudi Arabia’s Capital Market Authority has proposed easing investor criteria for Nomu, the Kingdom’s parallel market, aiming to expand participation and improve liquidity.
The proposed amendments suggest reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period.
Additionally, the requirement for quarterly trading activity would be eliminated. Under the new regulations, board and committee members of companies listed on Nomu would also be eligible to qualify as investors.
The project aims to reserve the term “Qualified Investor in the Parallel Market” for eligible categories, amend the minimum transaction value required for classifying a natural person as a qualified investor, and rank board members and committee members of listed companies as suitable to invest.
Saudi Arabia accounted for 31 percent of the region’s total initial public offering proceeds in 2024, making it the second-largest contributor after the UAE. The Saudi Exchange, Tadawul, witnessed 14 IPOs on its main market, collectively raising $3.8 billion. Nomu also saw 28 IPOs, generating $297 million.
The CMA called upon relevant and interested persons participating in the capital market to share their feedback on the draft for 30 days, ending on April 28.
Earlier in March, the CMA called for feedback on the draft “Regulatory Framework for Debt Instruments Offering Platforms and Investing in Them,” which aims to develop debt instrument offerings by licensed capital market institutions for securities crowdfunding.
With the consultation period to end on April 23, the draft outlines regulatory and licensing requirements for offering and investing in debt instruments, aligning with developments in the capital market.
Key proposals include allowing organizations to present debt instruments in the sukuk and debt market and enabling companies with a FinTech Experimental Permit to obtain the necessary license to operate as capital market institutions.
Organizations will need an arranging license to offer debt instruments through crowdfunding platforms. The draft also introduces requirements for safeguarding client funds and registrable functions for licensed establishments.
The proposal aims to expand the role of capital market institutions in financial technology, enhance the debt market, and increase participation in securities crowdfunding, supporting the CMA’s objectives.
Jewelry spending fuels Saudi POS surge for 2nd consecutive week
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 6.3 percent to SR14.4 billion ($3.8 billion) in the week ending March 22, with jewelry once again leading the growth.
The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the sector registered the largest increase in the value of transactions at 29.9 percent to reach SR544.4 million.
Jewelry also saw a 34.4 percent surge in terms of the number of transactions, reaching 403,000.
The hotel sector ranked second with a 24.8 percent surge in transaction value to SR440 million. Spending on clothing and footwear followed, rising 24.5 percent, holding the second-largest share of POS transactions at SR1.87 billion.
Overall transactions increased by 22.4 percent to 12 million.
Expenditure on transportation edged up by 6.9 percent to SR950.8 million, and spending in restaurants and cafes increased by 3.7 percent, bringing the total value of transactions to SR1.5 billion.
The smallest spending increases were in the telecommunication and the construction sectors, rising by 0.2 percent to SR114.8 million and 0.03 percent to SR308 million, respectively.
Spending on education saw the steepest decline for the second week in a row, dropping 37.2 percent to SR88.2 million, following a 144.6 percent surge during the week from March 2 to 8 as students returned from the winter break.
Expenditure on public utilities saw a 4.5 percent dip to SR52.4 million, and spending on food and beverages recorded a 2 percent drop to SR1.88 billion, but still held the largest share of the POS.
Miscellaneous goods and services accounted for the third biggest POS share, with a 5.8 percent uptick, reaching SR1.7 billion.
Spending in the leading three categories accounted for approximately 38.1 percent, or SR5.5 billion, of the week’s total value.
Geographically, Riyadh dominated POS transactions, representing around 34.1 percent of the total, with spending in the capital reaching SR4.9 billion — a 4.6 percent increase from the previous week.
Jeddah followed with a 9.8 percent increase to SR2.1 billion, and Makkah came in third at SR933.2 million, up 14 percent.
Tabuk experienced the smallest increase in spending, edging up by 0.6 percent to SR248.2 million.
Buraidah and Makkah saw the largest increases in terms of number of transactions, surging by 4.2 percent and 3 percent, respectively, to 4.4 million and 9.8 million transactions.
Emirates NBD teams up with BlackRock to expand private market access
RIYADH: Dubai’s Emirates NBD has partnered with US-based investment firm BlackRock to launch a dedicated platform aimed at giving its wealthy clients greater access to private markets and alternative assets.
The two firms signed a memorandum of understanding to create this platform, as well as introduce an initial range of evergreen offerings focused on income and growth strategies, tailored exclusively for the UAE wealth market, according to a press statement.
Clients of Emirates NBD Asset Management will gain access to BlackRock’s Alternative Investments platform, which currently oversees more than $450 billion in assets under management.
The appetite for private market investments has been rising globally, driven by investors seeking portfolio diversification and stronger returns. This trend is further fueled by a slowdown in global capital market activity amid higher borrowing costs, with the alternative asset market projected to reach $30 trillion by the end of the decade.
Marwan Hadi, group head of retail and wealth management at Emirates NBD, said: “Innovation is a cornerstone at Emirates NBD, and we are pleased to partner with BlackRock to offer access to best-in-class, products in alternative markets through a dedicated platform while supporting the growing needs of investors in the region.”
He added: “We are deeply committed to creating value through our offerings and advancing the investment landscape in the UAE and the wider region, which has been experiencing a strong appetite in the last few years.”
This partnership also aims to democratize investment opportunities previously limited to institutional investors and ultra-high-net-worth individuals.
Beyond investment opportunities, BlackRock will leverage its open architecture approach to support Emirates NBD Asset Management’s private markets expansion, offering services including marketing, education, training, and technology.
“We are delighted to partner with Emirates NBD as they build out their private markets platform. Spurred by investor sentiment and facilitated by product innovation, technology, and regulatory advancements, wealth allocations to private markets are predicted to increase materially over the next five years,” said Rachel Lord, head of International at BlackRock.
Emirates NBD serves more than 9 million customers across 13 countries, holding 997 billion dirhams ($271 billion) in assets as of Dec. 31, 2024.
