RIYADH — The $23 billion Riyadh Metro launched an auction on Sunday for private companies to name and advertise in select metro stops when the system opens in 2019, an initiative that could generate millions of dollars to help cover operational costs.
Construction on the 176-kilometer metro began in 2014 after contracts were awarded to consortiums headed by US construction giant Bechtel Corp, Spain’s Fomento de Construcciones y Contratas and Italy’s Ansaldo STS.
The metro’s six lines and 85 stations are scheduled to be operational by the end of 2019. They will be served by electric, driverless trains in what officials describe as the world’s largest public transport system currently under development.
Construction has pushed ahead amid speculation the project could be scaled back or delayed following a slump in Saudi Arabia’s oil revenues. The metro is part of the country’s ambitious program to reform the economy and society.
Local and international companies licensed in the kingdom will be eligible to bid for naming and advertising rights at 10 stations, said officials from the state-run Arriyadh Development Authority (ADA), which oversees the metro project.
Another 10 stations could be offered at a later auction. Bids must be submitted by Jan. 25 and winners will be announced by mid-2018, the officials said.
“(The revenues) will be allocated for running the train and supporting the public transit system in the city”, said Alwalid Alekrish, Director of Construction Development Projects and Project Director of the Riyadh Metro.
He declined to specify how much the auction was expected to generate, but the potential is large. The metro in neighboring Dubai has earned hundreds of millions of dollars with a similar initiative, according to local media.
Promotional materials suggested winning companies would have their logos plastered throughout the stations – at turnstiles, elevators, passageways and shopping areas.
Riyadh Metro joins station branding ride
Riyadh Metro joins station branding ride
COP29: Developing countries urge action on climate finance deal
RIYADH: Measures available to manage the rising global temperature are not sufficient, a leading Thai official has told the UN’s climate change conference in Baku.
Speaking at COP29 in Azerbaijan, the Asian country’s Minister of Natural Resources and the Environment, Chalermchai Sri-on, called for decisions to be made on climate financing to help those nations most affected by rising temperatures.
His comments were echoed by other ministers throughout the morning session, which came a day after the UN’s climate chief Simon Stiel told world leaders to “cut the theatrics and get down to business” with regards to agreeing a funding deal for developing countries.
Addressing delegates, Sri-on said: “The first global stocktake significantly showed that our current efforts are still insufficient to control global temperature increase.”
Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, urged developed nations to fulfill their financial responsibilities, ensuring funds are “accessible and impactful.”
Romania’s Minister of the Environment, Waters and Forests, Costel Alexe, called for prioritizing action over political differences, stating: “Failure is not an option for anyone.”
He also emphasized Romania’s focus on private-sector partnerships for decarbonization in energy, transport, and industry.
Diego Pacheco of Bolivia pointed to the responsibility of developed nations, stating: “Our countries are suffering the impacts of climate change, due largely to the historical emissions of developed countries.”
Sophalleth Eang, Cambodia’s minister of environment, reaffirmed Cambodia’s ambitious climate targets, including carbon neutrality by 2050, as outlined in its 2020 updated nationally determined contributions.
Franz Tattenbach, Costa Rica’s minister of environment and energy, expressed optimism in the ripple effects of decarbonization, saying: “We are an ambitious country, and we hope to scale up our ambition. We believe that decarbonization could lead to decarbonization in other countries.”
Austria’s Leonore Gewessler highlighted the need for urgent united action, saying: “It is our collective responsibility to make more progress without further delay.”
Additional leaders addressed the challenges of achieving meaningful climate goals amid global crises.
Burkina Faso’s Roger Baro urged for substantial commitments to protect the environment and develop resilient economies, while Celine Caron-Dagioni of Monaco called for updated contributions aligned with long-term climate goals.
Namibia’s Pohamba Penomwenyo Shifeta stressed the importance of balanced climate financing.
Speakers also showcased national achievements and initiatives. Uruguay’s Robert Bouvier Torterolo highlighted the country’s renewable energy success, with over 95 percent of its electricity derived from sustainable sources. Senegal’s Daouda Ngom emphasized the need for accessible financing to support adaptation plans.
Nigeria’s Balarabe Abbas Lawal detailed investments in renewable energy and afforestation, while Rwanda’s Valentine Uwamariya highlighted the significant economic cost of climate change to her nation and called for “ambitious, balanced, fair, and just outcomes” from the climate change forum.
Jordan wholesale trade price index increases 1.3% in first 9 months of 2024
RIYADH: Jordan’s wholesale trade price index increased by 1.31 percent year-on-year during the first nine months of 2024, driven primarily by higher prices for goods such as agricultural raw materials and tobacco, according to the country’s Department of Statistics.
The index reached 107.97 points, up from 106.40 points in the same period of 2023.
The largest contributor to the increase was the agricultural raw materials, grains, food, beverages, and tobacco category, which saw a rise of 3.35 percent. This was followed by a 1.47 percent increase in the fuel, metals, construction materials, and supplies group.
Other sectors showed more modest growth, including a 0.21 percent rise in machinery, equipment, and supplies, a 0.14 percent increase in textiles, clothing, personal, and household goods, and a slight 0.04 percent increase in motor vehicles, parts, and motorcycles.
In the third quarter of 2024, the wholesale trade price index rose by 1.41 percent year on year, reaching 107.97 points compared to 106.47 points during the same period in 2023.
The rise was driven mainly by a 3.16 percent increase in the agricultural raw materials, grains, food, beverages, and tobacco group, as well as a 2.48 percent rise in the fuel, metals, and construction materials group. Prices for textiles, clothing, personal, and household goods rose by 0.62 percent, while motor vehicles, parts, and motorcycles saw a 0.28 percent decline.
Machinery, equipment, and supplies prices decreased by 0.64 percent. On a quarterly basis, the index increased by 0.11 percent compared to the previous quarter, with the largest gains seen in agricultural raw materials (up 0.82 percent) and textiles, clothing, personal, and household goods (up 0.18 percent).
Jordan’s inflation this year has been shaped by both domestic and global factors. From January to October, the consumer price index rose by 1.56 percent, reaching 110.58 points compared to 108.88 points during the same period in 2023. Key contributors to inflation included an 11.6 percent surge in personal item prices, a 7.34 percent increase in water and sanitation services, as well as higher costs in union dues, rental prices, and tobacco products.
The industrial sector also played a role in driving inflation, with Jordan’s industrial production index rising by 0.48 percent through September. This increase was led by strong growth in the mining sector (up 8.34 percent) and electricity production (up 5.41 percent), while manufacturing output declined by 0.28 percent.
External factors, such as rising global food and energy prices, regional instability, and changes to subsidies and taxes, have contributed to price volatility, affecting wholesale trade and broader economic trends in Jordan.
Tourism, which accounts for about 12 percent of the country’s gross domestic product, has been particularly hard hit by regional conflicts. A report by Reuters noted that visitor numbers to popular sites like Petra have dropped dramatically, from around 4,000 per day to just 400.
Princess Haifa urges Saudi youth to embrace technology and innovation at Misk Forum
RIYADH: Saudi Arabia has created an environment that empowers its young generation to realize their ambitions through the Vision 2030 program, according to the Kingdom’s vice minister of tourism.
Speaking at the Misk Global Forum in Riyadh, Princess Haifa bint Mohammed Al-Saud, urged the Saudi youth to master new technologies and rely on credible sources of information.
She emphasized the importance of staying well-informed and stressed that success requires patience and perseverance, the Saudi Press Agency reported.
Saudi Arabia’s Vision 2030 initiative is one of the most ambitious plans to transform the Kingdom and prepare it for the future. One of the key goals outlined in the program is empowering the youth by providing them with job opportunities and access to technology.
“Nothing is impossible in Saudi Arabia. We are fortunate that Saudi Arabia has proven that progress and development are achievable,” said Princess Haifa.
She added that the Kingdom’s transformative journey is unprecedented, both regionally and internationally.
Saudi Arabia’s job creation efforts are showing positive results, with the latest report from the General Authority for Statistics revealing that the unemployment rate among Saudi nationals has fallen to 7.1 percent.
This marks a 0.5 percentage point decrease from the previous quarter and a 1.4 percentage point drop compared to the same period last year.
The report also highlighted a significant improvement in the unemployment rate among Saudi women, which saw a sharp quarterly decline of 1.4 percentage points, reaching 12.8 percent by the end of the second quarter.
The eighth edition of the Misk Global Forum, held under the theme “By Youth for Youth,” began in Riyadh on Nov. 18. The two-day event brought together young leaders from the Kingdom and around the world, creating a platform for dialogue and collaboration.
The Misk Foundation, a nonprofit organization established in 2011 by Crown Prince Mohammed bin Salman, plays a key role in fostering the young generation in Saudi Arabia by developing an environment conducive to creativity and innovation through initiatives such as Misk City, Misk Art Institute, Manga Productions, the Science Center, and Misk Schools.
In September, Saudi Arabia’s Tourism Minister Ahmed Al-Khateeb announced that the Kingdom is allocating substantial funds to boost the tourism industry and create jobs, especially for young people and women.
In August, a report by professional services firm PwC revealed that countries in the Middle East, including Saudi Arabia, are undergoing rapid transformation, driven by a growing youth population eager to embrace change and innovation.
The report also highlighted that the young generation in Saudi Arabia is increasingly aware of sustainable development goals and noted that organizations like the Misk Foundation are supporting the youth through a wide range of initiatives across sectors including education, innovation, arts, and culture.
Saudi Arabia’s endowment investment funds set record with over $267m in net assets
RIYADH: Net assets of licensed endowment investment funds in Saudi Arabia reached a record SR1 billion ($266.67 million) in 2024, marking a 29.3 percent increase from the previous year.
According to the General Authority for Endowments, this growth follows the 2023 record, which surpassed the half-billion riyal mark.
The increase in assets was attributed to the licensing of five new entities, bringing the total to 34 endowment investment funds, 27 of which are public and seven private.
Endowment funds in the Kingdom play a crucial role in driving sustainable development by providing the financial foundation for long-term projects that address critical societal needs.
These reserves are established through investments where the principal amount is preserved while the earnings are used to support various charitable and development initiatives.
This model ensures a continuous flow of resources for vital sectors such as education, health care, and infrastructure, as well as social welfare.
In Saudi Arabia, endowment funds are designed to align with the Kingdom’s economic development goals and are Shariah compliant.
They are used to finance projects that contribute to public welfare, including building educational institutions, supporting healthcare initiatives, and funding infrastructure projects that benefit communities across the Kingdom.
Strategic investment management ensures these funds’ sustainability, which allows the endowment to generate ongoing revenue for its initiatives while maintaining the original capital intact.
The Saudi government, through the General Authority for Endowments, has streamlined the process for licensing and managing these funds, enhancing transparency and enabling them to contribute more effectively to long-term development goals.
These reserves are also governed by regulations set by the Capital Market Authority, which oversees the creation of investment products that are aligned with the country’s broader objectives for economic and social progress.
By focusing on sectors such as education and health care, endowment funds in Saudi Arabia support the growth of human capital, improve the quality of life, and contribute to the achievement of Vision 2030, which aims to diversify the economy and reduce dependency on oil.
The funds also address the country’s growing demand for infrastructure and social services, particularly in urbanizing areas like Riyadh and Jeddah, where population growth is driving a need for sustainable development solutions.
TAQA-led consortium signs 25-year PPAs for 3.6 GW power plants in Saudi Arabia
RIYADH: Saudi Power Procurement Co. has inked two 25-year power purchase agreements with a consortium comprising Abu Dhabi National Energy Co., or TAQA, Japan’s JERA Co., and the Kingdom’s Al Bawani Capital.
The deals follow the consortium’s successful bid earlier this month to develop two gas-fired power plants, Rumah 2 and Al Nairyah 2, with a combined capacity of over 3.6 gigawatts on a build, own, and operate basis in Saudi Arabia, the Emirates News Agency reported.
Both plants, each with a 1.8 GW capacity, will feature advanced combined cycle gas turbine technology and support the integration of carbon capture systems, aligning with Saudi Arabia’s energy transition goals under Vision 2030.
The projects support the Kingdom's energy mix goals, which aim to meet power demand with a balanced split of 50 percent renewable energy and 50 percent gas technology by the end of this decade.
Farid Al-Awlaqi, CEO of TAQA’s Generation business, said: "TAQA has ambitious growth targets of 150 GW by 2030, and today's announcement marks a major milestone for 2024 with the addition of a further 3.6 GW of low-carbon gas-fired power capacity in the Kingdom of Saudi Arabia, making it five greenfield projects in the Kingdom under development in TAQA’s portfolio.”
He added: “In addition to signing the PPAs, we are taking on the role as the lead developer and will oversee the operations and maintenance of these two world-class plants, demonstrating our expanded operational capabilities.”
The CEO said the announcement of these two greenfield power projects reinforces TAQA's role as a sustainable developer and operator in key markets.
The two plants will be developed by special purpose entities jointly owned by TAQA with 49 percent, JERA with 31 percent, and Al Bawani with 20 percent.
Operation and maintenance of the facilities will also be managed by these entities.
"In line with JERA’s goal to achieve net zero by 2050, the award of these two high-efficiency independent power projects, featuring state-of-the-art HL class gas turbines, reinforces JERA’s commitment to decarbonizing thermal power generation,” said Steven Winn, chief global strategist, JERA.
Fakher Al-Shawaf, group CEO of Al Bawani Holding, emphasized that the partnership with TAQA and JERA on these “state-of-the-art" power plants marks a transformative milestone for Al Bawani, reinforcing its commitment to advancing the Kingdom’s energy diversification initiatives.
“This project represents our dedication to sustainable practices and our commitment to advancing the goals of Vision 2030,” he added.
The plants align with the Saudi Green Initiative, which aims for net-zero greenhouse gas emissions by 2060 through the circular carbon economy, with the timeline potentially accelerating as technology advances.
