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
Follow

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.”


OPEC+ moves to set 2027 production baselines

Updated 28 May 2025
Follow

OPEC+ moves to set 2027 production baselines

RIYADH: OPEC+ announced on Wednesday that it will establish a framework to determine new oil production baselines for 2027, marking a significant step in its long-term planning, said an official statement.

The alliance — comprising the Organization of the Petroleum Exporting Countries and partners including Russia—has been negotiating revised production baselines for several years. These baselines serve as reference points from which member states adjust their output levels.

According to the statement issued following the group’s meeting, said it had tasked the OPEC Secretariat with developing a mechanism to assess each country’s maximum production capacity. These assessments will form the basis for 2027 production targets across all member nations.

Since 2022, the group has implemented three tiers of output cuts. Two remain in place through the end of 2026, while the third is being gradually phased out by eight participating countries. No changes were made to the group’s current production policy at Wednesday’s session.

Due to the sensitive nature of the discussions, all sources spoke on condition of anonymity.

The 2027 baselines, once finalized, are expected to guide production policy after the current round of cuts expires.

Oil prices, which dipped below $60 per barrel in April—the lowest level in four years—following OPEC+’s decision to accelerate May output and amid trade tensions triggered by US tariffs, have since rebounded to around $65.


Saudi Arabia launches advanced manufacturing center to boost industrial innovation

Updated 28 May 2025
Follow

Saudi Arabia launches advanced manufacturing center to boost industrial innovation

JEDDAH: Saudi Arabia has launched the Advanced Manufacturing and Production Center, a key initiative aimed at accelerating the Kingdom’s industrial transformation through the adoption of advanced technologies and sustainable practices.

Unveiled on May 28, the center is set to play a central role in promoting efficiency, flexibility, and growth within the manufacturing sector. It will utilize technologies associated with the Fourth Industrial Revolution to localize production and enhance Saudi Arabia’s competitiveness on the global stage.

The initiative also supports strategic industries while aligning with the objectives of Saudi Vision 2030, the country’s long-term plan to diversify its economy. A major focus is encouraging private sector collaboration to speed up the integration of emerging technologies into industrial operations.

The launch supports the National Industrial Strategy, introduced in October 2022, which aims to increase the number of factories in the Kingdom to approximately 36,000 by 2035. The strategy is designed to attract investment, scale up local production, and strengthen non-oil exports.

The Ministry of Industry and Mineral Resources is overseeing several projects to advance the Kingdom’s industrial and logistical infrastructure, positioning Saudi Arabia as a key player in global manufacturing and trade.

“Adopting the latest industrial technologies raises the efficiency of our industrial sector and enhances its competitiveness regionally and globally,” said Khalil bin Ibrahim bin Salamah, deputy minister of industry and mineral resources for industrial affairs, in a post shared by the ministry on X.

In an accompanying video, the ministry reiterated the center’s significance in meeting national goals: “The Advanced Manufacturing and Production Center opens doors to industrial investment opportunities and stimulates the sector to adopt new manufacturing technologies within industrial facilities.”

The center is supported by several initiatives and programs, including the Future Factories Program, which aims to modernize 4,000 factories across the Kingdom. The FFP focuses on integrating advanced manufacturing systems to boost efficiency and build more resilient supply chains—particularly in critical sectors such as food and petrochemicals.

According to its official website, the center serves as a hub for industrial innovation, providing consultancy services, training, and technological solutions. It is dedicated to fostering sustainability and competitiveness across the manufacturing sector.

Through these efforts, the center is expected to significantly contribute to Saudi Arabia’s Vision 2030 goals by localizing high-tech capabilities, attracting investment, and advancing the industrial sector’s role in the nation’s economic diversification.


Closing Bell: Saudi main index rises to close at 11,052

Updated 28 May 2025
Follow

Closing Bell: Saudi main index rises to close at 11,052

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced on Wednesday, closing higher by 127.58 points, or 1.17 percent, to reach 11,052.76, reflecting broad market optimism.

Trading activity remained robust, with a total turnover of SR4.57 billion ($1.21 billion). Of the listed stocks, 202 posted gains while 44 declined.

The Kingdom’s parallel market, Nomu, also recorded gains, rising 340.91 points, or 1.28 percent, to close at 26,932.95. The market saw 48 advancing stocks against 34 decliners.

Meanwhile, the MSCI Tadawul 30 Index climbed 15.12 points, or 1.08 percent, ending the session at 1,413.70.

Fawaz Abdulaziz Alhokair Co. emerged as the session’s top performer, with its share price jumping 5.77 percent to SR16.50.

Ataa Educational Co. and Kingdom Holding Co. followed closely, gaining 5.46 percent and 5.22 percent to close at SR61.80 and SR8.66, respectively.

On the downside, United Carton Industries Co. registered the steepest decline, falling 4.87 percent to SR46.85. Banan Real Estate Co. dropped 2.4 percent to SR4.48, while Nama Chemicals Co. slipped 1.78 percent to SR27.55.

On the announcements front, Saudi AZM for Communication and Information Technology Co. disclosed it has submitted a request to transfer its listing to the main market.

Additionally, the initial public offering for Flynas Co. began on May 28 and will conclude on June 1. The offering is priced at SR80 per share, with a retail tranche comprising 10.25 million shares. According to a statement, BSF Capital is the lead manager.

Alkathiri Holding Co. announced that its subsidiary has signed a 50-year lease agreement valued at SR143 million with the Asir Region Municipality to develop a commercial and hospitality project in the city of Abha.

According to a statement published on the Saudi stock exchange, the project will feature a four-star hotel with a capacity of 180 keys, alongside retail and entertainment facilities. The development aims to boost tourism and enhance commercial services in the Asir region.

The lease will officially begin upon the land handover by the Investment Committee of the Asir Region Municipality.

Shares of Alkathiri Holding closed Wednesday’s trading session at SR2.06, marking a 1.96 percent gain.

In a separate disclosure, Mufeed Co. announced that its board of directors has recommended to the ordinary general assembly the transfer of its statutory reserve balance — totaling SR3.49 million, as reported in the financial statements for the year ended Dec. 31, 2024 —to retained earnings.


Saudi Arabia’s Asir region revitalizes 95% of stalled projects

Updated 28 May 2025
Follow

Saudi Arabia’s Asir region revitalizes 95% of stalled projects

  • Asir is a vast region in the Kingdom with a population exceeding 2 million people
  • Interest from global players seeking early opportunities in the region’s evolving landscape has grown

ABHA: Saudi Arabia’s Asir region has successfully revitalized 95 percent of its previously delayed project, an important milestone that is strengthening investor confidence as the region moves forward with SR29 billion ($7.73 billion) worth of initiatives across various sectors.

In an interview with Arab News, Hashim Al-Dabbagh, CEO of Asir Region Development Authority, stated that a dedicated committee, chaired by Asir Gov. Prince Turki bin Talal, was formed several years ago to tackle long-standing investment challenges that had stalled progress in the region.

“The total number of cases that have been brought to this committee to address has been 63, all brought to the table,” Al-Dabbagh said.

He continued: “Of these 63 cases that have been brought to this committee to address and to solve, 60 cases have been solved, and three are in the pipeline right now, and they’re working on them, and they’re going to solve them relatively soon.”

0 seconds of 57 secondsVolume 90%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:57
00:57
 

Of the 60 resolved, 57 were concluded with outcomes that satisfied investors, reflecting a resolution rate of nearly 95 percent.

“This committee and the work that they have done has created some very positive vibes across the investment ecosystem in Saudi Arabia, which you sense in this forum because there are some very large investors that are coming to Asir, some coming back to Asir which had not been interested in this region in the past,” Al-Dabbagh said.

The board operates in collaboration with various public and private entities, including ASDA, the Ministry of Investment, the Ministry of Tourism, the Tourism Development Fund, and King Khalid University, ensuring a unified approach to accelerating investor activity in the region.

This resolution mechanism plays a key role in supporting the region’s development strategy, which focuses on unlocking investment potential across various sectors.

“First of all, we have a strategy that drives everything that we are doing,” Al-Dabbagh said.

He added: “The strategy has been approved by the center of government, and it says that Asir should be a year-round preeminent destination, so already we know that we need to focus on the tourism sector and complementary and adjacent sectors to the tourism sector. That’s one, and that gives us a lot of momentum in working with the government ecosystem and the private sector.”

Al-Dabbagh emphasized that Asir is more than just a tourism destination, noting that it is a vast region in the Kingdom with a population exceeding 2 million people.

“Within the Asir Development Authority, we have a whole department called Economic Development Department, and they are working diligently this year on sectoral studies across the board.”

He added: “This includes, obviously, tourism-related sectors, but also other ones, so just as an example, we are looking at sports, we are looking at construction. We’re looking at fisheries and agriculture. We’re looking at renewable energy. We’re looking at mining among other sectors.”

The authority is also aligning its economic strategy with educational institutions to ensure the region’s workforce is equipped to meet the demands of upcoming sectors.

“We are working closely with King Khalid University, the TVTC (Technical and Vocational Training Corp.), Bishop University, and other educational institutions to align the strategies and to make sure that their graduates are able to find jobs in the opportunities that are going to be realized as we realize this strategy,” he said.

On attracting investments, Al-Dabbagh stated: “What I call the investment ecosystem in Asir, it’s the framework that we use to assess investments, is comprised of three components. The first component is the Invest in Asir committee, and that’s headed by Prince Turki in his capacity as the chairman of the Aseer Development Authority and includes all the public and private sectors.”

He explained that the region offers a compelling opportunity for early movers due to its untapped potential, strategic government backing, and the ability to enter key sectors before they reach full maturity, providing investors with a critical advantage in shaping long-term development.

“Asir relative to those mature, tourism destinations, offers relatively less mature areas, so when they’re coming in, they’re coming in early and they’re going to have a ... not a first mover advantage, but an early mover advantage compared to people that are going to see this place for five years or 10 years down the road when all these incumbents are already on the ground.”

Attracting FDIs

Foreign direct investment is also gaining momentum in Asir, with growing interest from global players seeking early opportunities in the region’s evolving landscape.

“One of the speakers in today’s forum was Fatih (who is managing partner of FTG Development), and they are looking at an investment worth billions in Asir. That is just one example, and foreign direct investors, they look for successful local investors to partner with,” Al-Dabbagh said.

He concluded: “Our doors are open. We’re very happy to meet with the investors from anywhere.”


EU lifts economic sanctions on Syria

Updated 28 May 2025
Follow

EU lifts economic sanctions on Syria

BRUSSELS: The European Union lifted economic sanctions on Syria on Wednesday in an effort to support the country’s transition and recovery after the toppling of former president Bashar Assad.
The move follows a political agreement reached last week by EU foreign ministers to lift the sanctions.
The EU will keep sanctions related to Assad’s government and restrictions based on security grounds, while also introducing new sanctions against individuals and entities connected to a wave of violence in March, the Council said.
“The Council will continue monitoring developments on the ground and stands ready to introduce further restrictive measures against human rights violators and those fueling instability in Syria,” it added.