LONDON: Saudi Arabia’s Public Investment Fund (PIF) has announced the establishment of a new energy service company, Super Esco, to increase energy efficiency across government and public buildings.
A royal decree has been issued requiring government entities to contract Super Esco on an exclusive basis in order to improve energy efficiency. The company was established to stimulate growth in efficiency industries, in line with the objectives of Vision 2030 to diversify the Saudi economy and drive environmental sustainability.
In partnership with the Ministry of Energy, Industry and Mineral Resources, the Ministry of Finance, and the Saudi Energy Efficiency Center, Super Esco will provide new investment opportunities by creating partnerships with the private sector to deliver projects.
Projects in Saudi Arabia’s energy efficiency sector have an estimated value of SR 42 billion ($11.2 billion), or around SR 3 billion annually. Internationally, the sector is valued at SR 130 billion, with projects in the US, Europe, and China accounting for 90 percent of the global market share.
Super Esco has been established with a capitalization of SR 1.9 billion. The company will fund and manage the retrofit of government and public buildings, which represent over 70 percent of overall projects in the sector. These projects will help reduce government spending on the electricity sector, which will in turn reduce natural resource consumption while rationalizing capital investments in expansion projects for the production, generation, transmission, and distribution of
electricity.
Earlier this week PIA launched an initiative designed to increase waste recycling in the Kingdom from 10 percent to 85 percent. A new unit will develop and operate projects to decrease landfill and boost recycling and link with private companies to forge new partnerships.
The Kingdom currently recycles around 10 percent of the 45.3 million tons of recyclable waste it produces, with 90 percent diverted to landfills, preliminary studies by PIF have found. More than 40 percent of the Kingdom’s recyclable materials are produced in Riyadh, Jeddah, and Dammam.
PIF’s plan aims at using some recyclable materials as a source of alternative energy for the manufacturing sector.
Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom’s main invest-ment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for KSA.
PIF aims to be the world’s most impactful investor, “enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia,” it has stated.
PIF in fresh drive to boost Saudi Arabia’s green credentials
PIF in fresh drive to boost Saudi Arabia’s green credentials
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UAE, Ukraine sign comprehensive economic partnership deal
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JEDDAH: The UAE and Ukraine have signed a Comprehensive Economic Partnership Agreement, removing customs duties on 99 percent of Emirati goods and 97 percent of Ukrainian exports to boost trade and investment.
The agreement aims to unlock new trade and investment opportunities, fostering deeper economic ties between the countries, reported the Emirates News Agency.
The signing ceremony was attended by UAE President Sheikh Mohamed bin Zayed Al-Nahyan and Ukrainian President Volodymyr Zelenskyy, marking a major step in enhancing bilateral economic cooperation.
This follows the UAE’s signing of CEPAs since 2021 with countries like India, Indonesia, Turkiye, Israel, Malaysia, Jordan, and Morocco to boost trade, attract investments, and protect exports and intellectual property.
The UAE president emphasized the strategic importance of the CEPA, highlighting its role in boosting bilateral trade and advancing both nations' economic ambitions. He expressed confidence that the agreement would strengthen economic relations and contribute to sustainable development.
Zelenskyy echoed these sentiments, emphasizing that the agreement would benefit both Ukraine and the UAE, expanding economic cooperation and providing new opportunities for growth.
The CEPA agreement was signed in a formal ceremony at Qasr Al-Shati by UAE Minister of State for Foreign Trade Thani bin Ahmed Al-Zeyoudi and Ukraine’s First Deputy Prime Minister and Minister of Economy Yulia Svyrydenko.
The deal is projected to contribute $369 million to the UAE’s gross domestic product and $874 million to Ukraine’s by 2031. It is also expected to accelerate Ukraine’s economic recovery and create new opportunities in sectors such as infrastructure, heavy industry, and aviation, as well as aerospace, and information technology, according to WAM.
The deal was signed after the two countries expressed their intent to negotiate a CEPA in December 2022, following over $3 billion in trade and investment commitments made during Zelenskyy’s visit to the UAE in February 2021.
Bilateral trade between the UAE and Ukraine totaled $372.4 million in 2024, down from $385.8 million in 2023. Joint foreign direct investment reached $360 million by 2022, covering sectors like logistics, infrastructure, tourism, and advanced technology.
The CEPA aligns with the UAE’s broader strategy to expand its global trade partnerships and increase investment across various sectors. The country aims to grow its non-oil trade to 4 trillion dirhams ($1.1 trillion) by 2031, with international trade playing a central role in its economic vision.
Closing Bell: Saudi benchmark index edges down to close at 12,266
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RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, losing 105.61 points, or 0.85 percent, to close at 12,266.46.
The total trading turnover of the benchmark index was SR5.4 billion ($1.2 billion), as 41 stocks advanced, while 201 retreated.
The MSCI Tadawul Index also declined by 15.52 points, or 1.01 percent, to close at 1,521.64.
The Kingdom’s parallel market, Nomu, lost 92.37 points, or 0.29 percent, to close at 31,644.81. This comes as 30 stocks advanced while 52 retreated.
Arabian Internet and Communications Services Co. emerged as the best-performing stock, with its share price surging by 4.82 percent to SR355.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 3.90 percent to SR29.30, and Shatirah House Restaurant Co., which saw a 3.65 percent increase to SR23.26.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. rose 3.02 percent to SR42.70, while Jamjoom Pharmaceuticals Factory Co. gained 2.74 percent to SR164.80.
Anaam International Holding Group saw the steepest decline of the day, with its share price easing 5.80 percent to close at SR24.68.
Al Mawarid Manpower Co. fell 3.45 percent to SR134.20, while Al Majed Oud Co. dropped 3.28 percent to SR171.20.
Middle East Healthcare Co. also faced a loss in today’s session, with its share price dipping 2.99 percent to SR81.20, while Mutakamela Insurance Co. saw a 2.77 percent to settle at SR17.52.
On the announcements front, Dar Al Arkan Real Estate Development Co. has fully redeemed its $600 million sukuk from its 2025 Series 6 Medium-Term Note program.
In a bourse filing, the company confirmed that the sukuk was paid in full on its due date, with the principal amount transferred to the designated account.
The sukuk, valued at $600 million, was originally issued on Oct. 15, 2019, with a trading end date of Feb. 15.
Dar Al Arkan utilized its internal resources to meet the obligation, ensuring a smooth redemption process. HSBC Bank served as the transaction’s paying agent and sukuk holders’ agent.
A total of 3,000 sukuk units, each with a par value of $200,000, were redeemed, representing 100 percent of the issued amount.
Sukuk holders are scheduled to receive their respective amounts in their accounts on Feb. 17.
The financial impact of the redemption will be reflected in the company’s first-quarter 2025 results.
Dar Al Arkan acknowledged the role of its investors and sukuk holders in the transaction, emphasizing their continued trust in the company, its board, and its executive management.
Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister
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RIYADH: Turkiye’s efforts to tighten fiscal policy are being hampered by the financial burden of earthquake reconstruction, Finance Minister Mehmet Simsek said, as the government grapples with balancing spending and economic stability.
Speaking during a closing panel at the AlUla Conference for Emerging Market Economies, Simsek said the country’s fiscal position remains under pressure due to ongoing rebuilding efforts.
Turkiye was struck by a 7.8-magnitude earthquake and a powerful aftershock on Feb. 6, 2023, devastating 11 provinces, killing over 53,000, and causing $34.2 billion in damages — 4 percent of its 2021 gross domestic product, according to a World Bank rapid damage assessment report. The estimate covered direct physical damage but did not account for indirect or secondary economic impacts.
“We have spent about $74 billion over the past two years, which is equivalent to just over 6 percent of GDP on earthquake reconstruction because we are building cities from scratch. Currently, 450,000 units are under construction; it’s the whole infrastructure,” Simsek said.
“Last couple of years, fiscal deficit to GDP has been around 5 percent, which is relatively high by Turkish standards. This year, we aim to bring it down to about 3 percent, so fiscal adjustment is underway,” he added.
The fiscal challenges come as Turkiye’s government pledged in March to continue tightening policy to curb inflation. The same month, Fitch Ratings upgraded Turkiye’s credit rating to “B+” from “B,” citing a more disciplined approach to monetary policy.
Despite headwinds, Simsek said inflation expectations are improving, albeit slowly.
“Inflation expectations are improving, but it’s been sluggish, in particular among households and among, you know, corporates, while markets obviously tend to have a better reading of what we are saying,” he said.
He emphasized that there is no substitute for better policies, stressing that the key lies in sound policymaking and effective execution. “For this year, it’s a combination of tight monetary policy and tighter fiscal policy combined with a more supportive incomes policy,” he said, adding that these measures should help sustain disinflation, which is crucial for improving expectations.
Macroeconomic stability
During the panel, Egypt’s minister of planning, economic development, and international cooperation, Rania Al-Mashat, said investing in resilience is an investment in the future.
“There are first principles that we all agree on, macroeconomic stability, this is a necessary condition if we want to move forward on privatization, if we want to move forward on confidence and credibility internally and externally,” Al-Mashat said.
She pointed to recent reforms that have stabilized Egypt’s economy, particularly in the foreign exchange market, and noted a retrenchment in public investment. “Right after March, you can see the manufacturing non-oil sector moving forward. We can see more exports taking place once the intermediate inputs into production were actually pushed,” she added.
Pakistan’s Finance Minister Muhammad Aurangzeb echoed the emphasis on fiscal responsibility, saying the country has achieved a primary surplus through disciplined management.
“Our taxes to GDP ratio has been languishing between 9 to 10 percent. That sort of moved in the direction of 10.8 percent at the end of December. We have agreed to move it to 13.5 percent to join the committee of nations and to bring a certain level of sustainability to the primary surplus that we have,” Aurangzeb said.
“On the other side, it’s also discussion on the expenditures and making tough policy choices with respect to what is a good cost and bad cost,” he added.
Brazil’s economic outlook
Brazil’s Finance Minister Fernando Haddad said the country’s central bank has played a key role in bringing inflation under control while maintaining growth.
“We are growing in the last two years around 3.4 percent a year, contradicting all of the predictions both domestic and international,” Haddad said.
“And we understand that the fiscal adjustment that we’re doing is not recessive because we’re guaranteeing a growth rate of 3.4 percent around a decline in inflation,” he added.
Organized by the International Monetary Fund and Saudi Arabia, the first edition of the high-level annual conference in AlUla aimed to address global economic challenges. The two-day event brought together finance ministers, central bank governors, and policymakers, alongside leaders from the public and private sectors, international institutions, and academia.
Emerging economies must ‘punch their weight’ in global policy
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RIYADH: Emerging economies must play a greater role in global economic discussions, Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, said at the closing of the AlUla Conference for Emerging Market Economies.
Organized by the Saudi Ministry of Finance and the International Monetary Fund, the forum highlighted the need for developing nations to assert their global influence, focusing on economic diversification, deregulation, and digital transformation.
Al-Jadaan stressed that emerging markets play a crucial role in shaping international economic policies and must be confident in their contributions.
“Emerging economies will need to punch their weight. They need to gain more confidence, they need to acknowledge, understand—even with humbleness—that they have something to say to the world,” he said.
He also criticized the dominance of advanced economies in global decision-making forums, emphasizing that “advanced economies have a lot to say, but they cannot resolve a lot of the key global issues alone.”
IMF Managing Director Kristalina Georgieva echoed this sentiment, highlighting that economic growth and dynamism are increasingly driven by emerging markets.
“Where is the youth population? Where is the potential for high growth that benefits everybody? It also benefits advanced economies—it is in the emerging world,” she said.
Georgieva outlined three critical steps for emerging markets: diversification, deregulation, and digitalization.
“Diversify your economy, your trade relations, your engagement, your vision for how you move forward,” she urged.
She also emphasized the role of government in facilitating economic growth by reducing unnecessary regulations.
“The government should do that—give indication as to where, what is the direction to travel, and then get out of the way,” she said, calling for the removal of bureaucratic obstacles.
Finally, she stressed the necessity of embracing digital transformation, particularly in artificial intelligence and financial transparency, to ensure competitiveness in a rapidly evolving global economy.
The conference, described by Al-Jadaan as “possibly the first global forum” dedicated solely to the economic prospects of emerging markets, provided a platform for leaders to discuss pressing challenges and opportunities.
“Bringing experts and discussing issues, challenges, and means of actually cooperating and working together to improve the lives of the people and the emerging economies and the world at large” was a core objective, he said.
As the event concluded, Georgieva asked the audience if they would be interested in a second edition of the conference, receiving an enthusiastic applause.
She confirmed that the IMF and the Saudi Ministry of Finance would document key takeaways and begin preparations for future discussions.
“We will work with our regional office and the Ministry of Finance so we can publish proceedings from the conference. But also, we will start immediately on thinking about how we bring this forward,” she said, indicating prospects for another conference edition.
Georgieva expressed optimism about the future of emerging economies, stating her vision for a world where developing nations are no longer seen as “emerging” but as equal players in the global economy.
“My dream, by the time I finish my term, is that we retire the term ‘emerging’ because you will have fully emerged,” she said.
Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation
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DUBAI: Japanese marketing and advertising firm Dentsu Group is expanding into Riyadh as it seeks to support the Kingdom’s transformation, according to its CEO.
Speaking to Arab News Japan, Hiroshi Igarashi said his firm is in alignment with Saudi Arabia’s Vision 2030 diversification initiative.
Through Dentsu Sports International in the Middle East, the company aims to reshape the Kingdom’s sports and entertainment landscape, delivering fan-centric experiences through sponsorships, digital engagement, and analytics.
“Saudi Arabia is positioning itself as a global hub for media, sports, and technology. Our ‘One Dentsu’ model aligns with Vision 2030’s focus on efficiency, innovation, and collaboration,” Igarashi said.
The ‘One Dentsu’ model, led by Deputy Global Chief Operating Officer Takeshi Sano, integrates media, creative and digital services for tailored business impact.
Igarashi told Arab News Japan that the company is a growth partner focused on digital transformation, not just acting as a service provider.
He said it was important to leverage global expertise in digital marketing, brand building and data solutions to empower local and international brands.
“Saudi Arabia is setting new standards, and we bring global best practices combined with local insights,” Igarashi said.
He highlighted how Dentsu’s Japanese roots, built on trust and precision, resonate with Middle Eastern business values: “We merge Japanese craftsmanship with global agility to drive lasting success.”
The CEO added: “We prioritize measurable results over media scale, offering clients a strategic edge in a fast-evolving market.”