UAE economy most diversified of all oil-based nations, UN environment chief says

Masdar City, a special economic zone that will eventually be home to companies and researchers from around the world to develop solar and other clean energies outside Abu Dhabi. (AFP)
Updated 07 March 2018
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UAE economy most diversified of all oil-based nations, UN environment chief says

The big challenge for the United Arab Emirates and the region is the transformation from an oil-based economy to one that is more broad-based, and according to the UN environment head, the UAE has achieved more than others.
“The Emirates is an amazing success story in terms of development,” UN Environment Executive Director, Erik Solheim told Arab News.
“It’s true that they have led to high emissions and environmental problems – as everywhere else undergoing development - however I am confident the government is now attacking this in a very determined way,” Solheim said.
The UAE has taken strides forward on climate change mitigation in recent years that are reflected by the establishment of the federal ministry of climate change and its commitment to the ratification of the Paris Agreement in 2015, which pledged not to just keep the increase in temperatures below 2C, but also to pursue efforts to limit it to 1.5C by 2018.
 

UN Environment Executive Director Erik Solheim, March 1, 2018, Dubai. (Photo: AN/ Rua'a Alameri)

During the Clean Air Forum held in Abu Dhabi last December it was announced that the majority of emissions being produced in the UAE could be traced back to the country’s energy sector, making up 74 percent of released emissions.
One of the contributing factors is the population growth and surge in income levels due to the economic boom the UAE witnessed in the past four decades, UAE Minister of Climate Change and Environment Thani bin Ahmed Al-Zeyoudi said last month. This led to a rise in non-sustainable production and consumption patterns, he said.
“The UAE has brought affluence to people at a high speed, so it means the challenge is big, but it has proved that it is a nation capable of adapting,” Solheim said.
In response, the UAE has put in place initiatives in order to control the effects of climate change, which include controlling emissions, reducing flaring of natural gas and increasing energy efficiency.
Solheim explained that for the region the main issue to focus on is shifting from a fossil fuel-based economy and secondly to introduce further the use of solar, wind and other renewable energies. This will have the benefit of both reducing pollution and climate change, he said.
In October 2017, Dubai Electricity and Water Authority (DEWA) launched a new project, as part of the Shams Dubai initiative, to install solar carports at their headquarters and at the Ministry of Climate Change and Environment buildings. The project aims to generate electricity using solar panels connected to DEWA’s network and is expected to reduce around 1,500 tonnes of carbon emissions annually to meet the goal set by the Dubai Supreme Council of Energy to cut 20 percent of the energy consumption in all government buildings, by 2020.
Plans were also announced last year for the world’s largest concentrated solar power project to be implemented in Dubai. The largest single-site project will generate 700 megawatts of power when completed, state news agency WAM reported.
Depending on average sunshine, it is estimated that one megawatt can power 164 homes.
It will also include the world’s tallest solar tower, standing 260 metres tall at Mohammed bin Rashid Al Maktoum Solar Park.
“The good news is that the price of solar and wind energy has fallen much more than the oil prices,” Solheim said, explaining that while in the past solar energy was less competitive but more environmentally friendly, it is now both better for the environment and in general terms the same or even lower priced than fossil fuel.
High costs had previously been a major obstacle prohibiting growth for the solar sector but prices have fallen. Solar PV modules are more than 80 percent cheaper than in 2009, and the cost of electricity from solar PV fell by almost three-quarters in 2010-2017 and continues to decline, according to the Abu Dhabi-based International Renewable Energy Agency, (Irena).
“That’s why you see solar and wind energy taking off in a completely new way,” Solheim said.  
“Al-Futtaim also have big ambitions going into this…And when others follow, the price will continue to fall,” he said, referring to Al-Futtaim Group, the largest conglomerate operating in the UAE.
The UN environment head met to sign a memorandum of understanding (MoU) with Majid Al Futtaim on sustainable construction during his visit to the UAE on Thursday.
Al Futtaim group partnered with the United Nations Environment Programme to get advice on the best practice for sustainable development that is environmentally friendly.
“Construction is one of the main sectors for both climate emissions and other areas,” Solheim said. Other areas that construction affects include the mining processes used to source materials, the transportation of these materials to the building site, the construction process itself and the waste removal and disposal process that follows the completion of the project.
The UAE’s infrastructure is currently the most advanced in the GCC region with well-integrated transport systems and assembly of iconic structure, according to a report by Research and Markets titled UAE Construction Industry Outlook to 2020.

However, it is a sector of concern. Tall buildings in the UAE consume huge amounts of water and electricity to cope with overheating under the country’s weather conditions, and as such have become significant sources of major greenhouse gas emissions.
The UN Environment Programme reports that the building sector accounts for 30 to 40 percent of global energy use. However, in Abu Dhabi, buildings consume approximately 50 to 60 percent of electricity generated.
However, Solheim states that the UAE has a “lead role to play because it’s the most modern place in the West Asia.”
He explained that both the public and private sector must work together to insure a greener future to “make society better for humans and future generations.”


Saudi mining minister reveals Kingdom’s ‘most valuable asset’ at Future Minerals Forum

Updated 16 January 2025
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Saudi mining minister reveals Kingdom’s ‘most valuable asset’ at Future Minerals Forum

RIYADH: Saudi Arabia’s wealth extends beyond its oil and gas reserves, with its human capital as its most valuable asset, according to the country’s minister of industry and mineral resources.

Speaking at the Future Minerals Forum in Riyadh, Bandar Alkhorayef emphasized the Kingdom’s commitment to developing its citizens as part of Vision 2030, describing human capital as “the most important asset that we have in this country”. 

During the forum, the minister also announced the inauguration of the Young Mining Professionals Association, a collaboration between the ministry and Saudi mining company Ma’aden, to further empower young talent in the sector. 

“Our Vision 2030 is very keen to ensure that everything we do, from an economic or sector development, is touching our people,” said Alkhorayef. 

“It is designed in a way that impacts people, people’s development, people’s opportunity for investment, entrepreneurs, but also job opportunities, quality job opportunities,” the minister said. 

He added: “I’m happy that our mining sector is very serious about ensuring that at the core part of what we are doing in our strategy, addressing how much impact we can bring to our people and especially to the youth of Saudi Arabia.” 

In a separate panel, Muhammad Al-Saggaf, president of King Fahd University of Petroleum and Minerals, echoed the minister’s sentiments, underscoring the critical role of talent in driving the Kingdom’s economic diversification. 

“In very simple terms, the mandate of KFUPM is to help expand the economy of Saudi Arabia. That is the mandate. We want to do our part that is to push forward an expansion of the base of the economy of the Kingdom,” he said. 

“What do you need to create new sectors?” Al-Saggaf asked. “You need two things: you need investment, and you need talent, and many times, strategists and planners focus a lot on investment, getting FDI (foreign direct investment) agreements, and so on. But talent is, as important, if not even more important, than the investment. And without it, you cannot actually achieve sector development in the way that the Kingdom and Vision 2030 wants.” 

He further explained the connection between investment and talent, describing it as “multiplicative” rather than additive. 

“If it were additive, you could make up for talent by adding investment, but that is not the case. In fact, the relationship between them is multiplicative. It is talent that amplifies and enables and allows the investment to achieve its goals, and without that talent, you will be multiplying by zero and you will be achieving nothing.” 

Al-Saggaf outlined three types of talent emerging from academic institutions. “The first type is the economy-burdening talent,” he said. 

“Those graduates who are unable to have the skills needed for today’s or tomorrow’s economy, and then they become a burden on the economy. They have to be re-skilled, or they take on menial jobs for which they spend years and they don’t need that training, if not, they become disgruntled because they are poor and unemployed and so on,” he added. 

“The second type, which is the largest type, is the economy-maintaining talent. Those are all the engineers and all the physicians, all the professors or the bankers or the lawyers who strive to maintain the progress of the current economy because the current economy has to continue to evolve and survive. And they are the largest portion of any economy this type, and they are essential and needed,” he explained. 

“But the most important type, as far as we are concerned. Our niche is type three. That’s the economy-creating talent. Those are the few who are going to go on to create the future jobs and create the future sectors,” he said. 

Al-Saggaf emphasized that KFUPM focuses on nurturing this talent. “This is why we tell all our students, and we have a number of our students in the audience today — when they get into KFUPM, you are not here to learn to get a job. If you get into KFUPM, it’s a very tough school to get into, you are implicitly guaranteed a job — that is not the objective. You are not here to learn to get a job. You are here to learn to create a job.” 

He also highlighted the university’s achievements in fostering diversity in engineering education. “KFUPM has the highest enrollment of females in engineering anywhere in the world with 50 percent, as opposed to 10-15 percent in global universities,” he said. 


Saudi Exchange launches framework for fixed income market making

Updated 16 January 2025
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Saudi Exchange launches framework for fixed income market making

  • Market makers are required to be members of the Saudi Exchange
  • Decision comes after the successful onboarding of market makers in the equities and derivatives divisions in 2023

RIYADH: Saudi Arabia’s stock exchange has announced the launch of its Fixed Income Market Making Framework to ensure the availability of secondary market liquidity.

The launch of this system will also increase price formation efficiency in the Kingdom’s capital market, according to a press statement.

The move aligns with the Capital Market Authority’s objective of transforming Saudi Arabia’s stock market into a key pillar of the nation’s economy under the directives of Vision 2030’s Financial Sector Development Program.

Introducing the Fixed Income Market Making Framework is a significant step in further developing the Saudi capital market, cementing its position as a leading regional financial hub, the statement added.

“As the Saudi capital market continues to evolve, we have seen an increase in debt issuances in recent years. In response to this growing demand, we have introduced a new Fixed Income Market Making Framework demonstrating our continued efforts to support the development and depth of the debt market and position the Saudi Exchange as a global destination in this field,” said Mohammed Al-Rumaih, CEO of the Saudi Exchange. 

According to the statement, the framework is a strategic initiative to stimulate secondary market activity in the fixed-income sector.

The Saudi Exchange’s decision comes after the successful onboarding of market makers in the equities and derivatives divisions in 2023.

Commonly known as the debt securities or bond market, the fixed-income sector is where companies can issue new debt — the primary market — or buy and sell existing debt securities, known as the secondary market, usually in the form of bonds.

Saudi Exchange said the new framework aims to enhance liquidity and facilitate more frequent transactions, making the Kingdom more attractive to domestic and international investors. 

“We aim to enhance the experience of investing in fixed-income instruments and attract a broader range of investors both regionally and internationally,” added Al-Rumaih. 

Under the Market Making Regulations, market makers are required to be members of the Saudi Exchange. They can conduct activities as principals on their accounts or as agents on behalf of clients. 

Market makers could continuously buy and sell orders for the relevant listed debt security during official trading hours to ensure the availability of liquidity for that listed debt security following the provisions of the Market Making procedures and the agreement, the statement added.

“Saudi Exchange will publish on its website a list of market makers and the securities on which they are performing this activity, and will provide incentives after the obligations are met,” said the exchange in the statement. 


Al-Habtoor Group plans Lebanon comeback, pending security guarantees

Updated 16 January 2025
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Al-Habtoor Group plans Lebanon comeback, pending security guarantees

  • AHG chairman emphasizes the importance of stability for future growth

RIYADH: Al-Habtoor Group is moving forward with plans to reopen its five-story mall in Beirut and relaunch the Habtoorland amusement park in Jamhour, contingent on Lebanon’s government delivering the promised security and stability measures.

In an interview with Arab News, AHG Chairman Khalaf Al-Habtoor emphasized that restoring the mall and amusement park remains a key priority for the group. However, these initiatives depend entirely on the assurances of safety and governance from Lebanon’s new leadership.

“We have a different management now overseeing the mall. They are waiting only for the implementation of plans by the president and the prime minister. I fully believe in the president, even though we haven’t met, and I believe in the prime minister,” Al-Habtoor stated.

On Jan. 9, Lebanon elected former army commander Joseph Aoun president, and on Jan. 13, appointed Nawaf Salam, the chief judge of the International Court of Justice, prime minister.

Al-Habtoor expressed his belief that the newly installed leaders possess the potential to unite the country and initiate the critical reforms needed for Lebanon’s economic revival.

Despite Lebanon’s long-standing political instability, including the devastating Beirut Port explosion, AHG has kept its facilities operational, ensuring that its employees retained their jobs throughout turbulent times.

“We don’t close our hotels. Even when we closed (temporarily), we didn’t terminate anyone. During the war, even after the port explosion, we did not release any of our employees. We paid them their salaries because they are part of us, like a family, like partners with us,” Al-Habtoor explained.

He further highlighted the group’s long-standing commitment to Lebanon, emphasizing its role in creating jobs and fostering local development. “We have been working for a very long time in Lebanon, and we created a lot of projects to create jobs for our people there, for our families—I call them. The Lebanese are part of us.”

While acknowledging the political challenges facing the country, the AHG chairman expressed optimism about Lebanon’s future under its new leadership, stressing the importance of public support for the government’s agenda. 

“If the Lebanese people want Lebanon to compete with successful countries, they have to support the president and the prime minister. Lebanon needs a lot of work, renovation, and fixing,” he noted. 

Al-Habtoor pointed to security as the linchpin for any future investments in Lebanon. “Nobody will invest a penny unless there is 100 percent safety and security in the country,” he asserted.

The AHG chairman said if the new president and prime minister manage to establish their authority within the next three months, he will personally return to Lebanon to oversee the group’s projects.

Although AHG has explored new ventures, including the establishment of a production studio, political instability had previously delayed such plans. 

Al-Habtoor reaffirmed his commitment to reconsidering these opportunities once Lebanon’s security situation stabilizes: “I will definitely reconsider, but the country’s shift to safety and security remains priority No. 1.”

The UAE-based businessman also stressed the necessity of clean, well-vetted leadership for Lebanon’s Cabinet. “They should not let any person from another country be involved,” he emphasized.

Despite these challenges, Al-Habtoor expressed hope for Lebanon’s revival under its new leadership, reflecting confidence in their sincerity and commitment to reform. 

“I have hope from these people. I believe in these genuine leaders and their honesty. If they deliver what they promised, I will be there, with my feet on the ground,” he said.

Reflecting on his personal connection to Lebanon, Al-Habtoor shared fond memories of time spent in the country. “My family and I spent a lot of time in Lebanon. We have our house in Jamhour, and we invested in many things. I have a lot of friends there. I miss them, and they miss me,” he said.

Looking ahead, AHG is also set to expand internationally, with the upcoming launch of the 200-key Al-Habtoor Palace luxury hotel in Budapest, scheduled for Feb. 3. The company is also pursuing ongoing projects in Dubai, which Al-Habtoor referred to as “the jewel of the world.”

He added that in Dubai, everyone can sleep and relax, fully assured of their safety and security. “This is what we need in Lebanon,” Al-Habtoor concluded.


Oil Updates — crude rises as US inventory decline heightens supply concerns

Updated 16 January 2025
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Oil Updates — crude rises as US inventory decline heightens supply concerns

SINGAPORE: Oil prices gained for a second session on Thursday, supported by worries over supply amid US sanctions on Russia, a larger-than-forecast fall in US crude oil stocks, and an improving global demand outlook.

Brent crude futures rose 25 cents, or 0.3 percent, to $82.28 per barrel by 7:46 a.m. Saudi time, after rising 2.6 percent in the previous session to their highest since July 26 last year.

US West Texas Intermediate crude futures rose 28 cents, or 0.4 percent, to $80.32 a barrel, after gaining 3.3 percent on Wednesday to their highest since July 19.

US crude oil stocks fell last week to their lowest since April 2022 as exports rose and imports fell, the Energy Information Administration said on Wednesday.

The 2 million-barrel draw was more than the 992,000-barrel fall analysts had expected in a Reuters poll.

The drop added to a tightened global supply outlook after the US imposed broader sanctions on Russian oil producers and tankers. The new US sanction measures have sent Moscow’s top customers scouring the globe for replacement barrels, while shipping rates have surged too.

The Biden administration on Wednesday imposed hundreds of additional sanctions targeting Russia’s military industrial base and evasion schemes.

Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, which have been curtailing output collectively over the past two years, are likely to be cautious about increasing supply despite the recent price rally, said Commodity Context founder Rory Johnston.

“The producer group has had its optimism dashed so frequently over the past year that it is likely to err on the side of caution before beginning the cut-easing process,” Johnston said.

Limiting oil’s gains, Israel and Hamas agreed to a deal to halt fighting in Gaza and exchange Israeli hostages for Palestinian prisoners, according to an official.

On the demand front, global oil expanded by 1.2 million barrels per day in the first two weeks in 2025 from the same period a year earlier, slightly below expectations, JPMorgan analysts wrote in a note.

The analysts expect oil demand to grow by 1.4 million bpd year-on-year in coming weeks, driven by heightened travel activities in India, where a huge festival gathering is taking place, as well as by travel for Lunar New Year celebrations in China at the end of January.

Some investors are also eying potential interest rate cuts by the US Federal Reserve before the end of the year following data on an easing in core US inflation — which could lend support to economic activities and energy consumption. 


OPEC forecasts 2026 oil demand growth of 1.43m barrels a day

Updated 15 January 2025
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OPEC forecasts 2026 oil demand growth of 1.43m barrels a day

LONDON: OPEC on Wednesday predicted that global oil demand in 2026 will increase at a rate similar to this year’s growth.

However, the organization lowered its 2024 demand projection for the sixth time, citing ongoing economic weakness in China, the world’s largest oil importer.

The 2026 forecast aligns with OPEC’s long-term view that global oil consumption will continue to rise over the next two decades. This contrasts with the International Energy Agency, which expects oil demand to peak within this decade as the world transitions to cleaner energy sources.

In its latest monthly report, OPEC projected that oil demand will increase by 1.43 million barrels per day in 2026, a growth rate nearly identical to the 1.45 million bpd expected for this year. The 2026 forecast marks the first time OPEC has provided a projection for that year in its monthly update.

OPEC noted that transportation fuels will be the primary driver of oil demand growth in 2026, with air travel expected to continue expanding. Both international and domestic flights are expected to see steady increases, according to the report.

The report also revised its 2024 demand growth forecast down to 1.5 million bpd, compared to the 1.61 million bpd forecast in the previous month. This marks the sixth consecutive reduction for 2024, following an initial forecast of 2.25 million bpd in July 2024.

OPEC’s demand outlook remains at the higher end of industry expectations.

Earlier on Wednesday, the IEA forecasted a slower pace of global oil demand growth in 2025, predicting an increase of 1.05 million bpd.