BAGHDAD: Iraq’s new oil minister Thamer Ghadhban said on Wednesday the current price of crude was “fair,” and that OPEC’s second-largest producer would be responsible in providing ample oil supplies to the market.
Ghadhban also said the oil ministry aimed to increase output capacity and will support foreign energy companies by helping them overcome any bureaucratic hurdles.
“We will do our best to stabilize the market,” Ghadhban told reporters after officially taking over the oil portfolio from Jabar Al-Luaibi.
“The oil price at the moment is at a fair price,” he said in response to a question about an upcoming OPEC meeting in December.
“It’s not too high, it’s not 100 dollars per barrel and it’s not 30 dollars.
“We will look after our country as a first priority but will not put aside the interests of the consumers.”
Oil prices rose on Wednesday, with benchmark Brent crude up 35 cents at $76.26 a barrel by 1115 GMT. The contract fell 1.8 percent on Tuesday, at one point touching its lowest since Aug. 24 at $75.09. US light crude was 25 cents up at $66.43. It hit a two-month low of $65.33 a barrel on Tuesday.
Ghadhban, who was nominated by Prime Minister Adel Abdul Mahdi and confirmed as minister in a parliamentary vote last week, said he would look at ways to reform the oil ministry, including by eliminating nepotism.
The new minister replaced Jabar Al-Luaibi, who had held the oil portfolio since 2016 in the government of former Prime Minister Haider Al-Abadi.
At a ceremony officially transferring the oil portfolio to Ghadhban, the new minister said he would seek to develop oil refineries by increasing their production capacity and reducing gas flaring.
Iraq has continued to flare some of the gas extracted alongside oil at its fields because it lacks the facilities to process it into fuel. Iraq has said it hopes to end gas flaring by 2021.
Iraq is OPEC’s second-largest producer after Saudi Arabia and pumps around 4.6 million bpd. The majority of its crude exports go to Asia.
The bulk of Iraq’s oil is exported via its southern terminals, which account for more than 95 percent of the OPEC producer’s state revenue.
Iraq’s southern oil exports averaged 3.488 million barrels per day (bpd) in October, two oil executives told Reuters on Wednesday.
Exports were down from the September average of 3.560 million bpd owing to bad weather, which slowed shipments on some days, the executives said.
Iraq is seeking to increase crude production capacity to 7 million bpd by 2022 from 5 million bpd now.
Ghadhban said Iraq also planned to increase exploration, especially in its western desert and along border areas.
Iraq oil minister says crude price ‘fair,’ aims to hike output capacity
Iraq oil minister says crude price ‘fair,’ aims to hike output capacity
- ‘We will do our best to stabilize the market’
- ‘We will look after our country as a first priority but will not put aside the interests of the consumers’
Saudi Arabia allocates $453m for 2024–2025 sports initiatives
JEDDAH: Saudi Arabia has unveiled an SR1.7 billion ($453 million) investment in three sports initiatives for the 2024–2025 season, aimed at boosting club development and raising the Kingdom’s profile in the sector.
This comes as part of the Kingdom’s Clubs Support Strategy, which focuses on developing five key initiatives – governance, various sports, and direct support, as well as fan attendance and digital transformation.
In a post on X, the Ministry of Sports confirmed that the allocations include SR1.04 billion in direct support for clubs in the Saudi Pro League, as well as those in the first and second divisions
Saudi Arabia has made significant progress in sports tourism since the launch of Vision 2030 in 2016, hosting around 80 athletic events over the past four years and drawing 2.5 million visitors.
Major events such as the Formula One race in Jeddah have brought substantial economic benefits. The 2023 edition, for instance, generated over 20,000 job opportunities and attracted attendees from 160 different countries.
In its post, the ministry also stated that Pro League teams will receive SR47 million annually for public clubs and SR45 million for private organizations. Additionally, each public or private club in the first division league will receive SR6 million annually.
Each public club in the second division league will receive SR2.787 million per year, while private clubs will get SR2.7 million each.
It added that a budget of SR503 million was allocated for the various sports initiatives.
It also stated that SR128 million has been allocated for the fan attendance initiative in the Saudi Pro League, with support contingent upon achieving performance indicators.
The Sports Ministry pointed out that its governance initiative aims to develop clubs administratively by applying standards and indicators that ensure their stability, growth, and goal achievement.
The Kingdom’s ongoing sports privatization undertaking has attracted considerable interest from local and international investors, with 25 companies actively pursuing opportunities in six of the 14 sports clubs proposed for privatization in the first phase.
At the country’s recent Budget Forum 25, Sports Minister Prince Abdulaziz bin Turki Al-Faisal highlighted the economic potential of the privatization effort, estimating investments could reach SR500 million.
Prince Abdulaziz also underlined the rising international profile of the Saudi Pro League, with broadcasts now reaching over 160 countries and a 33 percent increase in revenue this year, driven by growing participation and interest in the nation’s sports sector.
This expansion is part of Saudi Vision 2030 reforms aimed at diversifying the economy. To support investment, the privatization process has been streamlined by launching a platform that licenses academies and clubs, making it easier for individuals and businesses to invest.
COP16: Saudi Arabia vows to intensify action to tackle drought, land degradation
RIYADH: Saudi Arabia’s incoming COP16 president vowed to work with the international community to tackle drought and desertification on the first day of a UN conference in Riyadh.
Abdulrahman Al-Fadli, the Kingdom’s minister of environment, used his speech at the event – being held from Dec. 2 to 13 under the theme “Our Land. Our Future” – to reflect on the challenges facing the global community.
Outgoing COP15 president, Côte d'Ivoire’s Alain-Richard Donwahi, handed over leadership of the UN Convention to Combat Desertification with a call for continued urgency, while Ibrahim Thiaw, executive secretary of the UNCCD, warned that close to 40 percent of the planet’s surface is affected by land degradation.
Al-Fadli said he was “honoured” to have been elected president, adding: “We look forward to intensifying action under this convention to face the challenges and promote integration between various international environment organizations.”
Reflecting on the challenges ahead, he emphasized the Kingdom’s commitment to combating desertification, adding: “The Middle East is one of the regions most impacted by land degradation, drought, and desertification. We seek to address environmental challenges in partnership with the international community.”
The environment minister highlighted Vision 2030 as a cornerstone for the Kingdom’s green agenda, saying: “Protecting the environment and natural resources is essential for achieving sustainable development and quality of life.”
Saudi Arabia’s environmental commitment
Al-Fadli detailed the Kingdom’s objectives, including the Saudi Green Initiative, which aims to restore 40 million hectares of degraded land and increase national reserves by 30 percent by 2030.
He added: “We have established initiatives and programs to limit pollution, develop vegetation cover, and improve waste management and meteorological services.”
Addressing broader approaches, Al-Fadli highlighted that Saudi Arabia has adopted the National Environment Strategy and established a fund for environmental causes, as well as five specialized centers.
He underlined efforts in renewable energy: “We aim to ensure more than 50 percent of our energy mix comes from renewable sources by 2030, reducing carbon emissions significantly.”
Global and local perspectives
Mayor of Riyadh Faisal bin Abdul Aziz bin Ayyaf highlighted the interconnected nature of environmental challenges, saying: “No country or city can address these challenges alone. Through international cooperation and collective work, we can find innovative solutions to restore our land and develop our cities.”
He added: “We coordinate initiatives to ensure Riyadh can be a model for the world.”
Amina Mohammed, deputy secretary-general of the UN, called for urgent global action, particularly around strengthening international cooperation on land degradation, ramping up restoration work, and mobilizing finance at scale.
“Land sustains us, and we are destroying it. Action cannot wait,” she said.
Outgoing president’s reflections
COP15 president Donwahi praised Saudi Arabia’s capability to continue the battle against land degradation, saying there is no doubt in the Kingdom’s ability to “elevate our shared legacy even further” as it stands at the forefront of challenges such as sandstorms and drought.
Stressing the ongoing nature of the mission, he said: “We have remained optimistic. However, the situation remains urgent. We must go further and faster.”
Donwahi acknowledged the progress made by previous COPs, particularly the inclusion of youth, saying: “For the first time, we have appointed a special youth envoy, a strong symbolic gesture that demonstrates our commitment to young people.”
International collaboration
Ibrahim Thiaw, executive secretary of the UNCCD, used his speech to warn that close to 40 percent of the planet’s surface is affected by land degradation.
“This disease is progressing at a terrifying pace,” he added.
Thiaw expressed his “deepest gratitude” to Saudi Arabia for its “vision in elevating the global land restoration and drought resilience agenda.”
The conference also looked ahead to COP17 in Mongolia, with Prime Minister Luvsannamsrain Oyun-Erdene expressing his country’s readiness.
Oil Updates – crude rises on upbeat China data, shaky Israel-Lebanon ceasefire
SINGAPORE: Oil prices rose on Monday, supported by strong factory activity in China, the world’s second-largest oil consumer, and heightened tensions in the Middle East as Israel resumed attacks on Lebanon despite a ceasefire agreement.
Brent crude futures climbed 57 cents, or 0.79 percent, to $72.41 a barrel by 10:00 a.m. Saudi time while US West Texas Intermediate crude was at $68.58 a barrel, up 58 cents, or 0.85 percent.
“Oil prices have managed to stabilize into the new week, with the continued expansion in China’s manufacturing activities reflecting some degree of policy success from recent stimulus efforts,” said Yeap Jun Rong, market strategist at IG.
This offered slight relief that oil demand from China may hold for now, he added.
A private-sector survey showed China’s factory activity expanded at the fastest pace in five months in November, boosting Chinese firms’ optimism just as US President-elect Donald Trump ramps up his trade threats.
Still, traders are eyeing developments in Syria, weighing if they could widen tension across the Middle East, Yeap said.
A truce between Israel and Lebanon took effect on Wednesday, but each side accused the other of breaching the ceasefire.
In a statement, the Lebanese health ministry said several people were wounded in two Israeli strikes in south Lebanon. Air strikes also intensified in Syria, as President Bashar Assad vowed to crush insurgents who had swept into the city of Aleppo.
Last week, both benchmarks suffered a weekly decline of more than 3 percent, on easing concerns over supply risks from the Israel-Hezbollah conflict and forecasts of surplus supply in 2025, even as OPEC+ is expected to extend output cuts.
The Organization of the Petroleum Exporting Countries and their allies, known as OPEC+, postponed its meeting to Dec. 5 and is discussing delaying its oil output hike due to start in January, OPEC+ sources told Reuters last week.
This week’s meeting will decide policy for the early months of 2025.
“The extension of output cuts would allow OPEC+ more time to assess the impact of Trump’s policy announcements with regards to tariffs and energy and also to see what China’s response will be,” said Tony Sycamore, IG’s Sydney-based market analyst.
Since the group’s production hike had been widely expected, the market’s focus may be on the extent of delay to sway crude prices, said IG’s Yeap, adding: “An indefinite delay may be the best case for oil prices, given that earlier rounds of delays by a month or so have failed to drive higher oil prices in line with what OPEC+ intended.”
Brent is expected to average $74.53 per barrel in 2025 as economic weakness in China clouds the demand picture and ample global supplies outweigh support from an expected delay to a planned OPEC+ output hike, a Reuters monthly oil price poll showed on Friday.
That is the seventh straight downward revision in the 2025 consensus for the global benchmark, which has averaged $80 per barrel so far in 2024.
COP16: Largest-ever UN meeting on desertification starts in Riyadh
RIYADH: The largest-ever meeting of the UN Convention to Combat Desertification has kicked off in Riyadh, with bolstering global drought resilience one of the key goals.
Running from Dec. 2 to 13, the first few days of COP16 are set to see a number of high-profile summits, ministerial dialogues, and announcements to address the pressing challenges associated with land degradation, degradation and drought.
French President Emmanuel Macron is expected to be among the attendees, as is the President of the World Bank Ajay Banga.
The opening day of the event will see Saudi Arabia use its presidency of the event to launch the Riyadh Global Drought Resilience Initiative, in a bid to accelerate international action in this area.
In tandem, the Saudi Green Initiative Forum, running from Dec. 2 to 3, will include hundreds of policymakers, business leaders and subject matter experts from across the world in a dedicated pavilion in the COP16 Green Zone.
The Second International Forum on Greening Technologies is also set to take place in the Green Zone between Dec 6-8, including dozens of tailored sessions to explore solutions, innovations, and lessons learned from global greening projects, alongside showcasing the scientific research associated with restoration projects around the world.
12:52 p.m. – “Action cannot wait”
Amina Mohammed, deputy secretary-general of the UN, called for urgent global action, particularly around strengthening international cooperation on land degradation, ramping up restoration work, and mobilizing finance at scale.
“Land sustains us, and we are destroying it. Action cannot wait,” she said.
11:44 a.m - COP16 President speaks
COP16 President Abdulrahman Al-Fadli, also the Kingdom’s minister of environment, used his speech to emphasized the Kingdom’s commitment to combating desertification, adding: “The Middle East is one of the regions most impacted by land degradation, drought, and desertification. We seek to address environmental challenges in partnership with the international community.”
The environment minister highlighted Vision 2030 as a cornerstone for the Kingdom’s green agenda, saying: “Protecting the environment and natural resources is essential for achieving sustainable development and quality of life.”
10.43 a.m. - Private sector funding crucial to tackling degradation, UN executive says
Restoring the world’s degraded land and holding back its deserts will require at least $2.6 trillion in investment by the end of the decade, the UN executive overseeing global talks on the issue told Reuters, quantifying the cost for the first time.
More frequent and severe droughts as a result of climate change combined with the food needs of a rising population meant societies were at greater risk of upheaval unless action was taken, Ibrahim Thiaw said.
A large chunk of the around $1 billion a day that is required will need to come from the private sector, said Thiaw, who is executive secretary of the UN Convention to Combat Desertification.
“The bulk of the investments on land restoration in the world is coming from public money. And that is not right. Because essentially the main driver of land degradation in the world is food production... which is in the hands of the private sector,” Thiaw said, adding that as of now it provides only 6 percent of the money needed to rehabilitate damaged land.
“How come that one hand is degrading the land and the other hand has the charge of restoring it and repairing it?,” said Thiaw, whilst acknowledging the responsibility of governments to set and enforce good land-use policies and regulations.
With a growing population meaning that the world needs to produce twice as much food on the same amount of land, private sector investment would be critical, he said.
To hit $2.6 trillion — approaching the annual economic output of France — the world needs to close an annual gap of $278 billion, after just $66 billion was invested in 2022, the UN said.
10:36 a.m. - Abdulrahman Abdulmohsen Al-Fadley elected as COP16 president
Tripartite deal signed to strengthen Saudi Arabia’s real estate sector
JEDDAH: Saudi Arabia’s real estate sector is poised for significant growth following a new tripartite partnership designed to enhance housing finance and establish a secondary mortgage market.
Under the patronage of Minister of Municipal and Rural Affairs Majid Al-Hogail a memorandum of understanding was signed on Sunday by the Real Estate Development Fund, Saudi Real Estate Refinance Co., and Al-Ahli Bank. The agreement aims to support the Kingdom’s housing sector and accelerate the development of a secondary mortgage market.
The MoU, which involves the Public Investment Fund’s fully owned SRC and Al-Ahli Bank, marks an important step in fostering closer collaboration between financial institutions. As part of the agreement, Al-Ahli Bank will continue to create mortgage portfolios, which will be refinanced through the SRC, according to the Saudi Press Agency.
This partnership is expected to fast-track the creation of mortgage-backed securities (MBS), both domestically and internationally. By doing so, it will help realize the goals of the Kingdom's housing program, promoting the development of a sustainable and integrated real estate financing system. The initiative will also contribute to expanding housing options for Saudi citizens.
Recent data from the Saudi Central Bank shows that banks in Saudi Arabia disbursed SR60.92 billion ($16.24 billion) in residential mortgages during the first nine months of 2024, marking a 4.88 percent increase compared to the same period in 2023. Of this amount, SR38.85 billion was allocated for home purchases, accounting for 64 percent of the total mortgage loans. However, the share of loans for house purchases declined slightly by 3.38 percent year on year, dropping from 69 percent in 2023.
Demand for apartments has surged in response to urbanization and demographic shifts. Apartments now account for 31 percent of all mortgages, up from 25 percent last year, with lending for apartment purchases reaching SR18.6 billion — an increase of 26.8 percent. Loans for land purchases also grew by 8.26 percent to reach SR3.5 billion, underscoring continued interest in land investment across the Kingdom.
The new partnership aims to provide liquidity in the market, ensuring a continuous flow of mortgage financing and supporting the development of the secondary mortgage market in Saudi Arabia.
At the signing ceremony, Al-Hogail also launched a new financing offer from Al-Ahli Bank, with rates starting as low as 2.59% for those interested in purchasing units under construction.
Mansour bin Madi, CEO of the Real Estate Development Fund, emphasized that the strategic partnership with SRC and financial institutions aims to improve the residential mortgage market and reduce financing costs for Saudi families. He highlighted that the initiative aligns with the objectives of the “Sakani” program and the broader real estate goals of Saudi Vision 2030.
Majeed Al-Abduljabbar, CEO of SRC, noted: “This partnership with Al-Ahli Bank is a crucial step in advancing the mortgage financing market in the Kingdom. Through this collaboration, we aim to offer innovative solutions that enhance liquidity, allowing financial institutions to provide mortgage financing tailored to market needs, while expanding property options for citizens.”
Tareq Al-Sadhan, CEO of Al-Ahli Bank, affirmed that the partnership with SRC demonstrates the bank’s commitment to fostering growth in the housing sector and contributing to the development of a dynamic secondary mortgage market. This, he added, will support Saudi Arabia’s broader economic diversification efforts.
