LONDON: An oil price at its highest for two years — at about $63 per barrel — has allowed Saudi Arabia to deliver a budget that targets growth and investment, while also maintaining fiscal restraint that will see the deficit reduce further.
The Kingdom has been able to pull this off after last month’s accord by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producers to retain production cuts of 1.8 million barrels per day (bpd) throughout 2018, albeit with a review halfway through the year.
First agreed at the end of 2016, these cuts have reduced global stockpiles and revived the price after the worst slump in decades in 2014/15 when the price fell below $30 per barrel. This has allowed Saudi Arabia to ease austerity for the poorest and furnished it with funds to diversify and grow the economy. Global investment banks have raised their forecast for the oil price next year, encouraged by the cuts agreement, on the assumption the price will still be low enough to encourage consumption which, in turn, has helped to bring about robust growth in the global gross domestic product (GDP) in 2017.
Goldman Sachs has estimated that Brent crude — the international oil benchmark — will trade at an average of $62 a barrel in 2018.
Another bull, JPMorgan, said “solid fundamentals and tightening balances,” as well as OPEC’s willingness to balance markets, are reasons for its positive outlook. It reckons on an average of $60 per barrel next year.
“OPEC’s decision to extend cuts through 2018 to take OECD oil inventories down to the 5-year average is clearly supportive of prices,” said the bank in a note to clients on Dec. 8.
RBC Capital Markets has forecast $62.30, while UBS increased its 2018 Brent projection to $60 from $55. Citigroup is most bearish, warning in a recent note that the bullish supply and demand dynamic will run out of steam, and an upsurge in US shale production could spook the market. For Barclays, crude’s rally will encourage the US and other non-OPEC producers to boost output in 2018, helping tip the scales toward a gain in inventories once again.
On Dec. 18, the International Energy Agency (IEA) said it expected the early part of 2018 to see a surplus of 200,000 bpd and a deficit of the same order at the end of the year, inferring the market would not be broadly balanced until the concluding months of 2018.
The IEA also said US shale producers were more active now that the oil price is back over $60. It said US drilling and well completion rates have picked up as prices have rebounded.
The worry will always be that a big supply response by US shale producers could depress the price next year. Russian companies are worried that the cuts agreement — though good for their budgets — could mean conceding market share to rivals in America and elsewhere.
But at a recent forum in London, OPEC Secretary-General Mohammed Barkindo said the global oil market was tightening at an “accelerating pace,” and he cited a sharp reduction in worldwide inventories as evidence that last year’s agreement by producers to cut supply was having an effect.
He added: “OPEC stocks in September were about 160 million barrels above the five-year average, down from 340 million in January. There has been a massive drainage of oil tanks across all regions, a balanced oil market was fully in sight.”
OPEC and other producers want to get stocks down to the five-year average in order to remove the glut built up when the price was above $100.
Oil production cuts bring budget boost in Saudi Arabia
Oil production cuts bring budget boost in Saudi Arabia
Riyadh Zoo returns with new interactive experiences as part of Riyadh Season
- Entry is free for all, visitors can book tickets through the webook platform
RIYADH: Home to more than 1,400 animals from 190 species, Riyadh Zoo is back for its third year as part of Riyadh Season, offering visitors of all ages new interactive and educational experiences.
Beginning Oct. 30, the zoo opened its doors to the public free of charge. Visitors can book tickets through the webook platform and explore a variety of animals in natural habitats that mimic their original environments.
Among the new experiences is “Croc Cave,” where guests can safely observe crocodiles from secure platforms. The “Bird Zone” features a range of exotic birds, allowing visitors to engage with them up close and even feed them. Another highlight is the “Kangaroo Yard,” where guests can interact with and take photos of the famous Australian animals.
A new bird show has also been introduced, where trained birds perform entertaining and skilful tricks and routines, delighting the audience. The zoo’s educational offerings have been enhanced with an interactive farm experience, allowing visitors to learn more about nature and animal life through hands-on activities.
Riyadh Zoo operate daily from 9 a.m. to 5 p.m. and spans 161,000 square meters. The venue also includes food stalls and mobile food trucks to cater to visitors throughout the day.
Located in Al-Malaz neighborhood, it is one of the key attractions of Riyadh Season.
Seung-Min shin, a frequent visitor at the zoo, told Arab News she had taken her son who was deeply interested in the animals’ various behaviors.
“The flying birds and the absence of cages for each animal — where we can go inside and touch them — that’s the beauty here,” she added.
Visitor Fatima Hashim, emphasized the educational value for young visitors on offer, saying: “Seeing animals in real life helps children learn about animals, their nature, habitats, and the different types of mammals and birds. The experience was wonderful … the staff at the zoo focused on teaching children how to feed the animals, helping them have the full experience.”
According to Riyadh Zoo’s website, several rare and endangered animals have been born so far at the site, and the zoo also witnessed the Gulf’s first animal birth by cesarean section.
Riyadh Zoo’s layout includes zones designed to accommodate visitors with disabilities, with fewer stairs and more flat surfaces, allowing everyone to explore the park with ease and enjoy a complete experience.
Riyadh Zoo was originally established in 1957 as a private menagerie for King Saud and the Saudi royal family. It opened to the public in 1987.
How Saudi Arabia is helping to drive equitable energy transitions in Africa
- Saudi ‘Empowering Africa’ initiative bridges energy inequality through leveraging the continent’s untapped solar, wind, and hydropower
- The initiative aims to uplift communities and foster sustainable growth by reducing reliance on imported fuels and building local infrastructure
BAKU: As world leaders at this year’s UN Climate Change Conference, COP29, discuss the responsibility of developed nations to finance climate action in vulnerable regions, South-South cooperation is emerging as a transformative force driving equitable energy transitions.
Saudi Arabia has established itself as a leader in this collaboration between countries in the Global South, leveraging its resources, expertise, and strategic partnerships to unlock Africa’s renewable energy potential and shape a more sustainable future.
In November last year, Saudi Energy Minister Prince Abdulaziz bin Salman signed groundbreaking memorandums of understanding with five African nations — Ethiopia, Senegal, Chad, Nigeria, and Rwanda.
The agreements, finalized during the Saudi-Arab-African Economic Conference in Riyadh, aim to strengthen collaboration in oil, gas, and renewables, representing a holistic approach to energy development.
“These partnerships symbolize more than economic exchanges; they represent our shared commitment to sustainable growth,” Prince Abdulaziz said at the event. “Africa’s energy potential is vast, and Saudi Arabia is committed to supporting its development for mutual prosperity.”
The five agreements align with Africa’s distinct energy opportunities. For instance, Ethiopia seeks to bolster its hydropower infrastructure, while Rwanda is focused on advancing innovation in oil demand management and integrating renewable energy.
These MoUs also emphasize Saudi Arabia’s role in supporting localized solutions in line with global climate goals.
To bridge the energy equity gap on the African continent, Saudi Arabia’s Ministry of Energy last year introduced the Empowering Africa initiative. The project leverages Africa’s untapped solar, wind, and hydropower resources to provide clean and reliable electricity to underserved regions.
This effort plays a key role in improving energy access in areas where electricity deficits hinder economic development and quality of life.
DID YOUKNOW?
• Africa has 10 TW of untapped solar energy and 350 GW of hydroelectric power.
• Continent posses more than 70 percent of the world’s cobalt, a vital mineral for green technologies.
According to a 2022 report by the International Renewable Energy Agency, Sub-Saharan Africa is home to 75 percent of the world’s population without access to electricity, making it the most energy-deficient continent.
The African Development Bank recently noted that Africa needs $130-170 billion annually to close its infrastructure gap, facing a financing shortfall of up to $108 billion.
Abid Malik, the geo head for Central Asia at the Saudi energy leader ACWA Power, said the projects associated with the Empowering Africa initiative “aren’t just about power” but also focus on “community upliftment and sustainable growth.”
On the sidelines of COP29 in Baku, Azerbaijan, Malik told Arab News: “By reducing dependency on imported fuels and creating local infrastructure, these efforts provide resilience against global energy volatility.”
African countries also have more than a fifth of the world’s reserves in minerals critical for the energy transition, according to the UN Trade and Development.
These minerals, including cobalt, lithium, and rare earth elements, make the continent crucial to the global renewable energy supply chain. Such resources are foundational to technologies like electric vehicle batteries, solar panels, and wind turbines.
Despite this, much of Africa’s value-added manufacturing in green technology occurs elsewhere, and the continent captures less than half of its potential revenue from minerals.
Rebeca Grynspan, secretary-general of UNCTAD, has warned that critical minerals could create a “development trap” for resource-rich, vulnerable countries due to commodity dependence.
She stressed the urgent need for these nations, which rely on raw materials for most of their export revenue, to move up global value chains.
Saudi Arabia has therefore prioritized partnerships that tap into Africa’s rich mineral resources while fostering localized value creation.
“These collaborations are about ensuring Africa benefits from its own resources,” said Malik of ACWA Power. “The focus is not just on extraction but on building industries that create jobs, generate revenue, and drive technological innovation.”
One such cooperation with Chad aims to integrate solar technology into existing energy frameworks while developing mining infrastructure to support critical mineral extraction. These efforts reflect a forward-looking strategy that aligns African nations with the Paris Agreement while driving economic growth.
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Indeed, Article 6 of the Paris Agreement on climate change focuses on the development of carbon markets, which are carbon pricing mechanisms allowing governments as well as non-state actors to trade greenhouse gas emission credits.
Under this article, parties can voluntarily cooperate to meet emission reduction targets outlined in their nationally determined contributions. This allows a party to transfer carbon credits earned through emissions reductions to help others achieve their climate goals.
And as financing gaps remain a key challenge hampering progress in the Global South, Saudi Arabia is leading efforts to deploy innovative mechanisms, including voluntary carbon markets.
Riham El-Gizy, the CEO of Saudi Arabia’s Voluntary Carbon Markets Company, stressed the significance of directing climate finance to Africa.
“Only 2 percent of global climate finance reaches the Global South. This needs to change,” El-Gizy told Arab News at COP29.
Although Africa accounts for nine of the world’s 10 most climate-vulnerable countries, the continent receives a mere 3-4 percent of global climate finance, according to the African Development Bank.
To boost funding for local African communities, Saudi-backed initiatives, through voluntary carbon markets, are enabling the continent’s countries to monetize their carbon reduction efforts.
“By providing a platform for rural renewable energy projects, we’re creating a pipeline for funding that directly benefits local communities,” said El-Gizy.
This approach not only reduces emissions but also empowers rural areas with much-needed resources, bridging gaps in both finance and energy access.
Saudi Arabia’s leadership in South-South cooperation offers a roadmap for inclusive energy transitions. Its strategy, spanning renewable energy, critical minerals, and carbon markets, underscores the power of equitable partnerships in addressing the climate crisis.
As COP29 unfolds, the emphasis on South-South collaboration reaffirms that Africa’s potential as a renewable energy leader can only be realized through partnerships that prioritize shared growth.
Saudi Arabia’s investments in Africa showcase how collaboration can drive sustainable development, paving the way for a cleaner, more inclusive global energy future.
Saudi-French Ministerial Committee holds second meeting to discuss AlUla
- The meeting discussed ways to expand cooperation in areas including archaeology, sports, arts, development, and construction
PARIS: The Saudi-French Ministerial Committee held its second meeting in Paris on Friday in the presence of Saudi Minister of Foreign Affairs Prince Faisal bin Farhan.
During the meeting, the committee reviewed the agreements signed between the two sides and its achievements thus far in transforming AlUla into a global tourist destination and cultural hub.
The meeting also discussed ways to expand cooperation in areas including archaeology, sports, arts, development, and construction.
The meeting was attended by the Saudi Minister of Investment Khalid Al-Falih; Saudi Ambassador to France Fahad Al-Ruwaili; and Acting CEO of the Royal Commission for AlUla Abeer AlAkel.
Saudi aid agency expands orphan support in Jordan
- The program exemplifies Saudi Arabia’s broader humanitarian mission in the region through its relief arm, KSrelief
AMMAN: The King Salman Humanitarian Aid and Relief Center has distributed its latest round of monthly stipends to orphaned children from underprivileged Jordanian and Syrian refugee families across Jordan’s regions of Karak, Tafila, Maan and Aqaba.
Working with the Jordan Hashemite Charity Organization, the Saudi aid agency provided year-long support covering basic living expenses, educational materials, Eid clothing and recreational activities. The program aims to eventually support 1,000 orphans across Jordan.
Beneficiaries are selected from both local Jordanian communities and Syrian refugee populations, ensuring aid reaches those most in need.
The program exemplifies Saudi Arabia’s broader humanitarian mission in the region through its relief arm, KSrelief.
40 scouts finish the Wood Badge advanced course
- The course also included how to plan and execute outdoor trips
RIYADH: Forty scouts from various sectors of the Saudi Arabian Boy Scout Association completed the Wood Badge advanced course, with an average of 27 hours of training in theoretical and practical aspects.
The course, organized by Masar Development Association in Al-Ahsa, included working on the role, responsibilities, duties and needs of the scout unit leader and methods and means for training boys, as well as leadership concepts, patterns and theories.
It also covered public relations, scouting and boys’ development, problem-solving methods, youth participation in decision-making, planning methods, tools and techniques, the concept, styles and theories of scouting, protection from harm, and resource development.
The course also included how to plan and execute outdoor trips, including methods for navigation, setting up tents, secret signs, codes, map drawing, estimations, outdoor cooking, organized hiking, and report writing.
