Electric vehicles present no danger to Saudi oil industry: Energy minister

Saudi Energy Minister Khalid Al-Falih said that on the manufacturing side, the Kingdom is committed to alternatives modes of mobility. (AFP/File Photo)
Updated 10 April 2019
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Electric vehicles present no danger to Saudi oil industry: Energy minister

  • Key forum spurs Saudi Arabia to adapt to global technology trends

RIYADH: The future introduction of electric cars into Saudi Arabia is unlikely to jeopardize the Kingdom’s oil industry, according to Energy Minister Khalid Al-Falih.

Research into the use of hydrogen to power vehicles was already an area being looked at by experts in the country, the minister revealed.

Al-Falih was speaking at the inaugural Saudi Energy Forum (SEF) in Riyadh, organized by information consultancy Gulf Intelligence and attended by an estimated 400 representatives of the Saudi energy and mining sectors.

Delegates exchanged data on how global energy trends such as cybersecurity and climate change could impact Saudi Arabia and the wider global energy market.

The energy minister spoke about electric vehicles (EVs) during a forum session focused on wasys to harness emerging technologies to accelerate the Kingdom toward achieving the Vision 2030 reform plan targets.

He told delegates: “We’re undertaking a deep study on what it would take to invest in charging stations, to modify the grid in the Kingdom, so that we have thousands of cars by consumer choice or by potential policy for ground-level emissions, but we need to know the cost-benefit analysis.

“This is still in the study phase. Are electric vehicles going to doom oil? Is it going to impact the energy sector? The answer is no, because electric vehicles are only going to be economic in the light transport sector.

“Trucks, ships, and planes will continue to rely almost exclusively on petroleum-based fuels. So, yes there is a slight flattening of the demand curve, but the demand will continue to grow for oil, and we need the contributions of all of these modes of energy and mobility.”

Al-Falih added: “On the manufacturing side, we’re definitely committed to alternative modes of mobility. Hydrogen is another mode that we are looking at, and I know Aramco is looking at it, KAUST (King Abdullah University of Science and Technology) is looking at it, and a number of initiatives including hydrogen fuel cells, vehicles that will be experimented with in the Kingdom.”

He said the global adaptation and penetration of electric vehicles depended on the relative cost of electricity to petroleum fuels, and the number of subsidies from governments.

“We’ve seen governments in California and Norway where subsidies have reduced but not been completely eliminated, and demand for electric vehicles has been at 80 percent or more.

“In addition, governments have to put massive investments into the electrical infrastructure to support reinforcing the grids in neighborhoods and workplaces to allow fast-charging stations. So, it’s a multi-dimensional formula,” he said.

“Norway, for example, has a lot of hydro, cheap — almost free electricity, coming from its hydro resources. It makes sense that the country puts it into mobility.

“In the Kingdom, it is a different situation. The pure economics from a consumer standpoint, and from a government standpoint today do not support wide penetration of electric vehicles.”

The minister added: “Having said that, the capacity for electric vehicles today does not support those kinds of sales where 20 percent of global sales are EVs. So, if there is a vacuum for us to fill its probably more in EVs than conventional vehicles, because we believe EVs are going to grow faster than conventional vehicles.”

The forum hosted more than 40 speakers from within the Kingdom and abroad, and was attended by representatives of leading energy corporations, senior government officials, entrepreneurs, and businesspeople alike. The conference served to strengthen links between energy authorities and find the best ways to adapt to the opportunities and challenges that the present-day energy industry offers.

With technology having an ever-increasing influence on all major industry sectors, roundtable sessions at the SEF focused on brainstorming how energy and utility companies could best leverage the latest smart technologies when engaging with their respective market base.

Chairman of the Arabian Co. for Water and Power Development (ACWA Power) Mohammed Abunayyan discussed Industry 4.0 digital transformation.

“For us in our industry, we do not have an option,” he said. “We have to be part of it. Today we have two operating centers — one in Jeddah and one in Dubai. Why? Because we want to have all 49 of our plants in operation connected in real time, with real data.

“Today 13 of our plants are connected to the two centers, and by the fourth quarter of this year we will have all 49 operating and connected to these centers. Today the market is changing, and we have to be a part of this change.”

Abunayyan told delegates of the consequences of not keeping up with change. “You’re going to be bankrupted and you will leave this market. Either you are proactive in staying ahead of the curve, investing in the future, and riding this wave — because it is a wave — or you can stand still and just watch.

“This is a bullet train. Today we are sitting in a bullet train. You can step in or you can sit at the station and be left behind. For me, 4.0 is not an option. People have to be open-minded, have to accept change, and accept that some industries are going to disappear,” he added.


Olive presses in Tabuk process harvest from 1.8 million trees

Updated 53 min 6 sec ago
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Olive presses in Tabuk process harvest from 1.8 million trees

RIYADH: Olive presses in the Tabuk region are currently processing the harvest from more than 1.8 million olive trees, which yield 94,000 tonnes of olives and more than 12,250 tonnes of olive oil.

The primary olive varieties are Arbequina, Arbosana, nabalie and souri, the Saudi Press Agency reported.

The geography of the Tabuk region and its proximity to a Mediterranean climate, makes it one of the Kingdom’s most important areas for producing various crops.

In addition to olive oil, the region is known for its grapes, apricots, peaches, strawberries, mangoes, oranges and mandarins, with several varieties cultivated to prioritize quality over quantity.

Agriculture is a key economic sector in Saudi Arabia, contributing to self-sufficiency and exports. The government has prioritized the sector by providing farmers with soft loans, agricultural machinery, pumps and other essential equipment.

The regional branch of the Ministry of Environment, Water and Agriculture supports farmers by encouraging the use of advanced agricultural technologies and offering specialized consultations to maximize yields.

It also organizes seasonal agricultural festivals in cities, governorates and centers in the region, timed to coincide with harvest seasons.

The Olive Festival is the region’s premier seasonal event, providing a vital marketing platform for farmers to sell olive products and derivatives.

It is held alongside other events throughout the region, supporting the agricultural community and promoting local produce. 


Thai business meets Arab flair in Riyadh

Updated 17 November 2024
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Thai business meets Arab flair in Riyadh

  • Fair highlights products, brands aiming to tap into Saudi market

RIYADH: The Thailand International Mega Fair brought Thai businesses in contact with Arab flair in Riyadh.

The three-day event, which concluded on Sunday, showcased Thailand’s presence in the Middle East by featuring innovative Thai products and services across various industries.

Marking a historic collaboration between Thailand and Saudi Arabia, the fair signaled a new era of trade, investment, and cultural exchange.

One of the featured brands was Oud Era, a Thai lifestyle brand offering oud-infused products including perfumes, oils, oud chips, and body care items. Its perfumes incorporate Arabian notes like musk, rose, and amber.

Kasaama Pohsa, chief brand officer at Oud Era, said that the oud is sourced directly from the brand’s agarwood factory, ensuring an entirely in-house production process.

Thailand is recognized as one of the leading exporters of oud, which is valued for its longevity and a scent that intensifies as the wood matures. Pohsa said that her clientele primarily comprises customers from Gulf countries.

Pohsa said: “The reason that we came to this exhibition is because we saw the high potential of the Saudi market. It is a very big market with high purchasing power.”

The fair also showcased fashion brands like Marada Clothing, a label known for its distinctive textiles and bold designs.

Panasan Suksanguan, brand officer of Marada, told Arab News that the brand aims to establish itself in the Middle Eastern market with its unique take on long dresses.

Suksanguan said: “We want to be the first ones from Thailand to be here. Whenever you think about fashion in Thailand, you think of me.”

The event showcased more than 200 brands offering prominent Thai products across sectors including food and beverages, tourism and hospitality, health, automotive parts, smart agriculture, innovation, and fragrances.

It was organized by Index Creative Village in collaboration with the Chamber of Commerce and Board of Trade of Thailand, and Cosmos Events company, with support from the Royal Thai Embassy in Saudi Arabia, and the Tourism Authority of Thailand.

The event attracted thousands of visitors, including specialists and buyers, and helped to create opportunities to connect with industry experts, suppliers, and sector leaders to foster partnerships and support business expansion in the Kingdom.

Visitors also participated in various events, including seminars, discussion panels, and forums, which provided valuable insights into the region’s economic landscape.


New project to plant 90,000 trees in Hali Wildlife Park

Updated 17 November 2024
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New project to plant 90,000 trees in Hali Wildlife Park

RIYADH: The National Center for Vegetation Cover Development and Combating Desertification has launched a project to restore Hali Wildlife Park in Al-Qunfudhah governorate, Makkah region.

Part of the Saudi Green Initiative, the project aims to enhance vegetation cover and promote sustainable environmental goals, according to the Saudi Press Agency.

The initiative involves planting 90,000 native and wild trees, such as vachellia tortilis, tamarix aphylla, vachellia seyal, balanites aegyptiaca, maerua crassifolia, delonix elata, salvadora persica, leptadenia pyrotechnica and acacia nilotica.

The trees will cover approximately 6 million sq. meters, irrigated using water from nearby dams. A 6-kilometer pipeline will be built to channel water from Wadi Hali Dam to the park.

Hali Wildlife Park is known for its scenic landscapes, diverse vegetation and proximity to Wadi Hali Dam, attracting local and international visitors.

The center’s afforestation efforts contribute to creating green spaces, preserving endangered native plants, lowering temperatures, improving air quality, and controlling sand encroachment.

The center is committed to enhancing and managing vegetation sites, protecting natural resources, combating illegal logging, and safeguarding biodiversity, the SPA reported.


‘Climate action must be a collective effort,’ says COP CEO Soltanov

Updated 17 November 2024
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‘Climate action must be a collective effort,’ says COP CEO Soltanov

  • Fight against climate change will fail unless countries come together
  • National interest linked with global actions

BAKU: Countries from around the world must come together in a “collective effort” to fight climate change, COP29 CEO Elnur Soltanov told Arab News.

“When we say, ‘in solidarity for a greener world,’ we mean that climate action must be a collective effort. Unless it is collective, it won’t work, and we risk losing everything,” said Soltanov.

He pointed out the moral imperative of international solidarity, particularly for nations that contribute minimally to global warming yet suffer the most from its effects, such as African countries and small island nations.

“African countries, contribute less than 4 percent to global warming, but the majority of climate-vulnerable countries are in the African continent,” he said.

For example, as of last year, extreme heatwaves during summer have critically affected the northern parts of Africa, such as Tunisia. The temperature in Tunis reached 49°C, whereas Agadir in Morocco, recorded 50.4°C, according to the World Meteorological Organization.

One of the major components of this solidarity is climate finance, which Soltanov believes is essential for creating a fair balance of responsibilities among nations.

“Different countries have different responsibilities, in terms of what is happening in the world today. There are beneficiaries, there are not so many beneficiaries, so this balance and fairness between them could only be provided in case we are moving collectively, and to move collectively, we believe we should deliver on climate finance this year,” he said, stressing that climate finance is critical for enabling of collective action.

Soltanov acknowledged that the outcomes of such gatherings are frequently scrutinized.

“The crisis we are facing is real, it is significant and therefore whenever it is helped, whatever the outcomes are, there will be criticism. It is not about Azerbaijan, it is not about Saudi Arabia, it is not about any country,” he said.

Despite the criticism, the CEO prefers to be heavily focused on achieving tangible results and delivering meaningful climate action instead of focusing on who to blame for this global environmental problem.

“We are ready to listen to constructive arguments,” he said. “What would I tell everybody is, if you want to serve that national interest of Azerbaijan, you need to serve the global interest, which is about producing outcomes and deliverables in terms of tackling the climate crisis.”

He added: “Our focus is on delivering action, climate action, that is really consequential.”

Soltanov noted that developed countries have special responsibilities to assist others, highlighting the need for a cooperative approach to ensure that nobody is left behind.

“We don’t see the difference between oil producing or oil consuming country because oil transactions, gas transactions and coal transactions happen in a free market. Nobody is forced to buy from anybody.”

He added: “Therefore, all the countries are oil countries and all the countries are gas countries because the entire global development models are based on hydrocarbons, and we are trying to figure out these alternative models of development so that development and energy security, development and poverty are not things we choose from, they happen at the same time.”

Azerbaijan and Saudi Arabia, for example, can share their capabilities, experience, and partnerships to bring more to the table.

“We believe that, the way we look at, if there is anything Saudi Arabia, a country like Azerbaijan, could do for us, they are valuable in terms of experience and technology they acquire because they are at the forefront of the other forms of energy developments.”


Saudi Arabia to host 6th UN World Data Forum in 2026

Updated 17 November 2024
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Saudi Arabia to host 6th UN World Data Forum in 2026

  • Kingdom’s successful bid endorsed by High-Level Group for Partnership, Coordination, and Capacity-Building in Statistics (HLG-PCCB)

RIYADH: Saudi Arabia was confirmed on Friday as host of the sixth edition of the UN World Data Forum in 2026, Saudi Press Agency reported on Saturday.

The announcement was made at Friday’s conclusion of the fifth edition, held in Medellin in Colombia and attended by representatives from all 193 UN member states.

The Kingdom’s successful bid was endorsed by the High-Level Group for Partnership, Coordination, and Capacity-Building in Statistics (HLG-PCCB), recognizing Saudi Arabia’s significant progress and commitment to leveraging data for sustainable development.

Fahad Aldossari, president of the General Authority for Statistics (GASTAT), expressed his congratulations to King Salman and Crown Prince Mohammed bin Salman for their continued support.

He acknowledged their backing and the role it has played in strengthening GASTAT’s global presence and expertise, enabling it to compete on an international scale.

Aldossari noted that hosting the 6th UN World Data Forum was a testament to Saudi Arabia’s comprehensive advancements across various sectors, particularly in data and statistics.

“This forum will be an invaluable platform for sharing technical expertise, fostering partnerships with national statistical offices worldwide, and enhancing global cooperation in statistics,” he said.

He also expressed gratitude to Colombia’s government, the UN, and the National Department of Statistics (DANE) for their successful organization of the 5th forum, as well as to the HLG-PCCB and participating representatives for their dedication. 

The UN World Data Forum is a premier global event, drawing more than 20,000 participants from government bodies, national statistical offices, international and regional organizations, academia, civil society, and the private sector.

It addresses challenges in global data and statistics, fosters collaboration, and underscores the importance of data in shaping effective policies and initiatives.