India quarterly growth slumps to 3.1%, worst in two decades
Asia’s third-largest economy expanded by just 3.1 percent during the period
Updated 29 May 2020
AFP
MUMBAI: India’s economy grew at its slowest pace in at least two decades in the January-March quarter, according to government figures released Friday, with warnings of worse to come as it grapples with the fallout of the world’s largest coronavirus lockdown.
Asia’s third-largest economy expanded by just 3.1 percent during the period which coincided with the first week of a months-long shutdown, with the next quarter expected to reflect a severe contraction as manufacturing, services and consumption came to a grinding halt.
Annual growth hit an 11-year low, coming in at 4.2 percent, the slowest pace of expansion since the 2008 global financial crisis.
Saudi insurers expect financial boost from new reinsurance mechanism
Move aims to boost role of local reinsurance firms in mitigating insurance risks
Kingdom’s insurance industry is forecast to grow at a compound annual growth rate of 5.2% through 2028
Updated 8 sec ago
Nirmal Narayanan
RIYADH: Saudi insurance companies are expecting a positive impact on their financial performance from a new mechanism that directs reinsurance premiums to the local market.
The move, introduced by the Saudi Insurance Authority, aims to boost the role of local reinsurance firms in mitigating insurance risks within the Kingdom.
“The mechanism stipulates that when insurance companies wish to reinsure, they must offer at least 30 percent of their treaty and facultative reinsurance agreements to companies licensed to conduct reinsurance activities within the Kingdom,” according to a statement on the Saudi Stock Exchange.
The mechanism is set to take effect on Jan. 1, giving licensed reinsurance companies the priority to accept or decline these assignments, it added.
Saudi Arabia’s insurance industry is forecast to grow at a compound annual growth rate of 5.2 percent through 2028, with its market size expected to reach SR83.7 billion ($22.28 billion), according to London-based data analytics and consulting company GlobalData.
This growth, up from SR68.3 billion in 2024, is largely attributed to the health and motor insurance sectors, which are projected to account for 86 percent of total gross written premiums.
Earlier data compiled by Arab News from Bloomberg showed a strong performance in the sector, with earnings increasing by 25 percent in the first half of 2024, reaching SR2.2 billion ($585 million), compared to the same period in 2023.
The Saudi Reinsurance Co. expects the new mechanism to boost its reinsurance revenues in the Saudi market by more than 5 percent. The company also said that the financial impact will be reflected in its earnings from the first quarter of next year.
Walaa Cooperative Insurance Co. said that the mechanism will positively affect its financial performance, with results expected to be seen starting in the first quarter of 2025.
As one of the companies licensed by the insurance authority to conduct reinsurance activities, Walaa said the impact would be reflected in its financial results for that period.
Mediterranean & Gulf Cooperative Insurance & Reinsurance Co., known as MEDGULF, said the new mechanism presents an opportunity to reassess its strategy regarding accepting additional reinsurance premiums from local insurers.
Tawuniya Co. also expressed optimism, saying that it would positively impact its revenues from the Saudi market.
“It is expected that positive financial impact will have an effect on 2025 financial results,” said Tawuniya.
Gulf Insurance Group and LIVA Insurance Co. have also said that the new mechanism is expected to contribute positively to their financial performance starting next year.
Bahrain Airshow concludes with key deals, record aircraft displays
Three-day showcase attracted over 55,000 industry professionals and visitors
Defense forums showcased advancements in combat technology
Updated 42 min 10 sec ago
MOHAMMED AL-KINANI
MANAMA: The Bahrain International Airshow 2024 concluded with a flurry of major business deals, including a contract between Bahrain’s Ministry of Transportation and Telecommunications and Leonardo to modernize the country’s air traffic radar and surveillance systems.
The agreement is set to enhance Bahrain International Airport’s efficiency and safety through advanced primary and secondary radar technologies.
The seventh edition of the airshow, held on Nov. 13 — 15 at Sakhir Air Base, set a record with over 125 aircraft displayed, a 25 percent increase from the previous event.
The event saw Bahrain’s national carrier Gulf Air extending its long-standing collaboration with Amman-based Joramco, boosting maintenance, repair, and overhaul capabilities.
Other key agreements included a partnership between Infracorp and Mena Aerospace to develop specialized aircraft hangars to position Bahrain as a regional hub for advanced aviation services.
The event also saw Valo Aviation secure Bahrain’s first business jet operator license, with plans to operate 15 aircraft by 2026, and a strategic cybersecurity alliance between Iron Net and Asterion to bolster critical infrastructure protection.
Aircraft showcases
Debut appearances at the event included the US Department of Defense’s B-52H Stratofortress and flydubai’s latest static display models.
The three-day showcase, inaugurated by Bahrain’s Crown Prince Salman bin Hamad on behalf of King Hamad, attracted over 40,000 industry professionals and visitors.
After touring the exhibition, Crown Prince Salman emphasized Bahrain’s focus on priority sectors as drivers of economic diversification, national development, and progress. He highlighted the role of the kingdom’s national talent in sustaining achievements and shaping future aspirations, according to the state news agency.
He underscored the importance of strategic sectors in supporting his country’s ambitions and contributing to its comprehensive development journey under the leadership of the monarch. He also reaffirmed Bahrain’s strong tradition of hosting successful international exhibitions and conferences, stressing the importance of maintaining this legacy.
Air displays included performances by the Saudi Hawks, Bahrain’s F-16s, and the US Navy’s P-8 Poseidon, showcasing their capabilities. Static displays featured a range of aircraft, including Gulf Air’s B787-9 and the Pakistan Air Force’s JF-17.
The Saudi Hawks team showcased green, red, and white trails in a nod to the strong ties between Saudi Arabia and Bahrain.
The Royal Saudi Air Force’s Typhoon, piloted by Maj. Faris bin Ali Al-Zahrani, demonstrated its capabilities with a series of maneuvers and high-speed passes.
Organized by Bahrain’s Ministry of Transportation, the Royal Bahrain Air Force, and Farnborough International, the event underscored the kingdom’s position as a global aviation hub.
Sustainability and innovation
Sustainability dominated discussions at the Airport and Airlines Forum, where executives from Gulf Air Group, Airbus, and Rolls-Royce explored the adoption of sustainable aviation fuel and net-zero technologies. Regulatory support and innovation were highlighted as essential to making sustainable aviation fuel commercially viable.
Mohammad Al-Khuraisi, vice president of strategy and business intelligence at the Saudi General Authority of Civil Aviation, said the agency’s participation in the Bahrain International Airshow highlights his country’s achievements in aviation, showcases the key pillars of the Kingdom’s aviation strategy, and presents future investment opportunities.
Ali Rajab, GACA’s executive vice president of Air Transport and International Cooperation, said the authority’s presence at the event underscores new regulations aimed at fostering growth and innovation in the aviation sector.
Rajab added that the Saudi aviation strategy, which targets $100 billion in investment and aims to increase annual passenger numbers to 330 million, serves as the foundation for these advancements.
Defense forums showcased advancements in combat technology, including autonomous systems, AI-driven cybersecurity, and electronic warfare, emphasizing the importance of collaboration between governments and the private sector.
Aviation milestones
Bahrain International Airport was recognized as the world’s first to receive the International Air Transport Association’s Environmental Assessment Certification, aligning with the kingdom’s broader sustainability goals.
Bahrain’s National Space Science Agency also announced an initiative to train 100 students in satellite image analysis and space science, part of its STEM-focused educational efforts.
Growing reputation
At a press conference, Sheikh Abdullah bin Ahmed, chairman of the airshow’s supreme organizing committee, expressed pride in its success in attracting leading global companies and organizations.
“This is by far the most successful international airshow hosted in Bahrain in terms of connectivity, engagement, and diversity,” said Sheikh Abdullah.
He added: “Bahrain is a strategic hub for the aviation industry, and this year, we are celebrating 75 years of aviation. Bahrain has consistently played a pivotal role in fostering regional growth and innovation.”
The chairman said the numerous agreements and deals signed during the event reflect Bahrain’s growing global stature, with the strong turnout of exhibitors, participants, and visitors further cementing the kingdom’s reputation as a hub for excellence and innovation.
Sheikh Abdullah highlighted Bahrain’s ongoing success in hosting major international events, positioning it as a preferred destination for business and innovation.
“This year’s edition of the airshow has already welcomed 40,000 international and regional aerospace professionals, delegates, and visitors, with expectations to surpass 55,000 by the end of the day.”
He also said that the airshow is a key driver for the aviation sector, aligning with Bahrain’s vision for technological advancement and creative growth.
With 177 organizations participating and 80 percent of exhibitors being international, the biennial event underscored Bahrain’s commitment to its Economic Vision 2030 by fostering investment, digital transformation, and sustainable growth.
Sustainable technologies, innovations discussed at COP29 to mitigate climate change
Updated 16 November 2024
Haifa Alshammari
BAKU: Azerbaijan, an oil-producing country and host of the COP29 UN climate change conference, is focusing on green innovation and development, showcasing its efforts at the global gathering in Baku.
“We are collaborating with international companies and research institutions to ensure that COP29 showcases cutting-edge technologies in renewable energy, water management and carbon capture,” said Mukhtar Babayev, COP29 president.
Although Azerbaijan remains reliant on fossil fuels, it is working with international organizations and educational institutions to ensure that COP29 is not only about policies and funding, but also a platform for presenting environmental innovations.
“Our focus is on delivering a conference that fosters practical solutions, showcases Azerbaijan’s leadership in the energy transition, and reinforces our commitment to a sustainable and resilient future,” said Babayev.
According to an article by Elkhan Nuriyev, a global energy associate at the Brussels Energy Club and senior expert on Russia, Eastern Europe, and Central Asia at L&M Political Risk and Strategy Advisory in Vienna, published on the Ceeenergy News website: “The government has advocated for stronger commitments to enhancing financial mechanisms for green projects worldwide. A standout project is the ‘Green Energy Hub,’ a multi-faceted initiative focused on harnessing renewable energy sources. This hub includes large-scale solar farms, wind turbines and hydropower facilities, serving as a key export resource.”
In addition, an agreement was signed four years ago between Azerbaijan’s Ministry of Energy and Masdar, a UAE clean energy company, to establish the country’s first solar energy facility — the 230-megawatt Garadagh Solar Power Plant.
Saudi Arabia is one of the examples to prioritize sustainable development through its Vision 2030. (Abdulrhman Bin Shalhoub)
The project covers 550 hectares and features 570,000 bifacial photovoltaic panels, which capture both direct sunlight and the reflection of sunlight from the ground.
Masdar is not the only company involved in renewable energy technologies in Azerbaijan. Earlier this year, ACWA Power, a leader in the energy transition and a pioneer in green hydrogen, partnered with Azerbaijan’s national oil company, SOCAR, to develop projects that will accelerate renewable energy in the country.
According to ACWA Power’s website, the private company is “currently constructing Azerbaijan’s and the region’s largest 240 MW wind power plant in the Absheron-Khizi region at an investment cost of $345 million.”
As governments increasingly prioritize sustainability, the integration of innovative technologies is becoming a key demand for fostering both economic growth and environmental stewardship.
Saudi Arabia is also prioritizing sustainable development through its Vision 2030.
According to the Kingdom’s national source for government services and information, which outlines the Sustainable Development Goals of Saudi Vision 2030, “the Kingdom of Saudi Arabia endeavors to tackle the issues of poverty, inequality, climate change, prosperity, peace, justice, education, health, social protection and the availability of employment opportunities, and, recognizing the intersecting nature of these issues, ensures they are all included in its national strategy.”
In addition, many other technologies have been developed worldwide to combat climate change, including an innovative solution launched 2017 to develop renewable energy: solar-powered trains.
According to an article by Justyna Matuszak on the Know-How website, this type of green transportation can run for an entire day without needing to recharge. The railway also releases 75 percent of the energy it generates into the ground, as reported by the BBC.
Bladeless wind energy is another technology designed in 2012 by the Spanish startup Vortex Bladeless.
It features is an elastic rod that secures the company’s three-meter tall bladeless turbine vertically into the ground. According to the previously mentioned report, the turbine sways with the wind speed, generating energy from the resulting vibrations.
Due to its design, it is suitable for use in cities or residential areas as it does not require as much space as a traditional wind turbine.
Another new sustainable technology is 3D-printed solar energy trees. Developed by researchers at VTT Technical Research Centre of Finland, the technology, as described in the Know-How report by Matuszak, is a prototype tree that collects solar energy, heat and kinetic energy from its surroundings, whether indoors or outdoors, to generate electricity for small appliances.
By embracing modern sustainable innovations and fostering joint partnerships between the public and private sectors, tackling climate change may become more achievable.
The urgency of climate finance: Is the world ready to commit?
Updated 16 November 2024
MANAL AL-BARAKATI
BAKU: As global leaders gather in Baku for the COP29 UN climate change conference, the focus on climate finance has never been more pressing. This year’s conference theme, “Accelerating Climate Action for Sustainable Development,” suggests that climate action must advance economic stability as well as address environmental concerns.
Yalchin Rafiyev, Azerbaijan’s lead negotiator for COP29, has said that “trillions of dollars” are needed to fund the fight against climate change — a significant increase from the longstanding annual target of $100 billion, which itself remains unmet. Vulnerable nations are especially affected by this shortfall, lacking the resources to build resilience against climate impacts.
The need for equitable financing
Delegates from developing regions, including African representatives, have called for climate finance to reflect the distinct economic realities faced by less developed countries.
Shaimaa Al-Sheiby, senior director of strategic planning at OPEC, spoke to Arab News about the importance of ensuring that climate finance meets the needs of developing economies
“In many countries, it’s difficult for governments to sustain economic progress without accessible financing,” Al-Sheiby said. She advocated for wealthier nations and financial institutions to play a greater role in “de-risking” investments in developing markets to attract private capital for renewable projects.
Yusuf Idris Amoke, a Nigerian climate adviser, said: “The Global South is on the receiving end of climate impacts while contributing far less to emissions.”
For these countries, the push to phase out fossil fuels often clashes with immediate economic needs, especially given that alternatives are limited and expensive.
“Financing third world countries or the Global South is key,” Amoke added, saying that transitioning without robust financial support is neither equitable nor feasible.
Voluntary carbon markets and climate solutions
Voluntary carbon markets have been gaining traction as a flexible solution for reducing emissions, especially in regions where compulsory systems have struggled to achieve significant results.
These markets encourage companies to take part in climate initiatives by creating financial incentives, which, as Al-Sheiby said, are essential for involving the private sector.
“Private capital is very shy,” she added, saying that risk-reduction strategies could help attract these funds to where they are most needed.
The success of voluntary markets, however, depends on strong regulatory support, transparency and accountability.
Global initiatives and South-South collaboration
The COP29 Presidency has launched the Baku Initiative for Climate Finance, Investment and Trade, a collaborative platform designed to align climate finance and trade with sustainable development priorities. By convening leaders from developed countries and the Global South, the initiative aims to foster equitable climate solutions.
In Africa, Saudi Arabia’s “Empowering Africa Initiative” exemplifies South-South collaboration. Minister of Energy Prince Abdulaziz bin Salman has signed agreements with Ethiopia, Chad, Senegal and other countries to promote energy equity as well as accelerate the continent’s energy transition. These agreements are set to harness Africa’s vast renewable energy potential, including its 10 terawatts of solar capacity.
Abid Malik, ACWA Power’s geo head for Central Asia, highlighted the importance of fostering local expertise during an interview with Arab News. “Our projects in Africa don’t just bring renewable energy; they create jobs, enhance technical skills and empower local communities to take charge of their energy futures,” he said.
The intersection of climate finance and conflict recovery
The recently announced Baku Call on Climate Action for Peace, Relief and Recovery highlights the role of climate action in stabilizing conflict-affected regions. “Climate-induced challenges such as water scarcity and food insecurity are catalysts for conflict,” said Mukhtar Babayev, COP29 president. “Peace-sensitive climate action is crucial for the most vulnerable.”
Gilles Carbonnier, vice president of the International Committee of the Red Cross, highlighted the environmental fallout in conflict zones like Gaza. “In places like Gaza, where infrastructure has been decimated, renewable energy offers a lifeline,” he told Arab News. “Solar microgrids in refugee camps are providing critical electricity for healthcare and other essential services.”
Charting a path forward
The commitments announced at COP29 reflect a growing recognition of the interconnected challenges of climate finance, energy equity and conflict recovery. With asset owners controlling $10 trillion pledging to accelerate private capital deployment and initiatives like BICFIT gaining momentum, the foundations for transformative change are being established.
For vulnerable nations, these efforts offer a glimmer of hope. However, achieving a just transition will require sustained political will and a reimagining of global financing systems. As COP29 unfolds, the world is watching to see if the pledges made in Baku will translate into tangible action.
Saudi Fund for Development marks 50 years with efforts in emerging economies
Updated 17 November 2024
Nirmal Narayanan
RIYADH: As the world is being divided by geopolitical tensions and wars, Saudi Arabia’s development fund is extending a helping hand to emerging nations through soft loans and grants.
Established in 1974, the Saudi Fund for Development has supported more than 800 projects worth $20 billion in over 100 countries.
As it celebrates 50 years since it was founded, the fund’s offerings for developing nations show no signs of slowing down.
Here are the highlights of its activities in the first nine months of 2024.
Water project to Benin
In February, SFD signed a memorandum of understanding with Benin to allocate a $5 million grant to support the implementation of the fifth phase of the Saudi Program for Drilling of Wells and Rural Development.
According to a press statement, the water project is expected to overcome the effects of drought in 37 villages across the West African nation.
“The project will contribute to the growth and prosperity of the infrastructure sector, provide access to water and food security, maintain public health, and reduce environmental pollution, to help achieve the Sustainable Development Goals, specifically SDG 6, clean water and sanitation,” said SFD.
The fund’s development cooperation with Benin started in 2008, with it providing soft loans to finance six development projects and programs worth more than $145 million in the country over the past sixteen years.
Supporting Turkiye’s education sector
In February, SFD signed a $55 million loan agreement with Turkiye to rehabilitate five public schools covering an area of approximately 55,000 sq. meters.
The project will equip these schools with the necessary equipment and resources to protect them against earthquake damage, ensuring the continuity of their quality and efficiency, according to a statement.
Over the past four decades, SFD has financed nine development projects and programs in Turkiye, worth over $300 million, in multiple sectors including energy, health, agriculture, and education.
Empowering transport sector in Tunisia
Earlier this year, the fund signed a development loan agreement worth $55 million to renew and develop the railway network for phosphate transportation in Tunisia.
According to a press statement, the project will help renew approximately 190 km of the system, support increasing the capacity for transporting phosphate, and contribute toward Tunisia’s economic growth by creating direct and indirect job opportunities.
Loan to support clean energy growth in Pakistan
In March, SFD signed two development loan agreements totaling to $101 million to finance the establishment of the Shounter Hydropower and the the Jagran-IV Hydropower Projects in Pakistan.
A loan worth $66 million is intended to construct the 48-megawatt Shounter Hydropower station and connect it to the country’s national electricity grid.
This project also involves dam construction, water diversion and purification structures, powerhouse development and discharge tunnel construction.
The second loan, amounting to $35 million, will help establish the Jagran-IV Hydropower Project, which is set to have a capacity of 22 MW. This project entails the construction of dam, powerhouse, water diversion and purification building, as well as the provision of generators, transformers, necessary equipment, and transmission lines.
“These two agreements mark a continuation of efforts to boost clean energy projects in Pakistan, addressing challenges posed by conventional energy and its associated financial costs,” said SFD.
It added: “Additionally, they underscore the significance of clean energy and its contribution to fostering vital opportunities for sustainable development, aiming to support social development, stimulate economic growth, and meet population basic needs.”
In 2023, SFD financed oil derivatives worth $1 billion for Pakistan, when the South Asian nation was facing a tough economic situation amid dwindling forex reserves and rapidly depreciating national currency.
Supporting energy sector in Saint Kitts and Nevis
In April, SFD signed another development loan agreement worth $40 million to bolster the energy sector in Saint Kitts and Nevis.
According to a press statement, the loan centers on the financing of the expansion of the Needsmust Power Plant Project in the island nation. The project entails the establishment of a state-of-the-art dual-fuel power generation station with a capacity of 18 MW.
“This initiative is poised to significantly enhance the country’s energy production capabilities, contributing to a flexible hybrid power generation platform. It emphasizes efficiency improvements, utilization of clean fuel, and a pivotal step toward sustainable energy practices,” said SFD.
Aid to disaster-affected communities in Saint Vincent and the Grenadines
To support the disaster-affected communities in Saint Vincent and the Grenadines, the SFD in April signed a $50 million developmental loan agreement with the Caribbean nation.
According to a press statement, the agreement aims to finance the construction and rehabilitation of buildings and facilities affected by natural disasters in the country.
“The goal is to enhance the sustainability and resilience of these structures to withstand future disasters and climate change effects. The project encompasses furnishing and equipping buildings with necessary equipment, including the establishment of four health care facilities, construction of primary and secondary schools, government buildings, and rehabilitation of damaged houses by volcano, among other infrastructure works,” said SFD.
SFD enters El Salvador and Nicaragua
In June, SFD forayed into El Salvador and Nicaragua by signing developmental loan agreements with these nations.
The fund signed a $83 million deal with El Salvador to fund a water treatment and biogas power generation project in the Central American country.
“The project will treat wastewater that currently flows into the Acelhuate River, while also producing biogas for renewable electricity generation. Expected to benefit over 1.2 million people, it will significantly increase El Salvador’s renewable energy capacity, and contribute to environmental sustainability,” said SFD.
— الصندوق السعودي للتنمية (@SaudiFund_Dev) June 7, 2024
In the same month, the fund signed another developmental loan agreement worth $103 million with Nicaragua to finance the development of the Carlos Centeno Departmental Hospital in the Central American nation.
According to a press statement, the fund will be used to construct a 25,000-sq.-meter hospital with a capacity of 300 beds, serving the surrounding regions.
The facility will also include specialized clinics for surgery, comprehensive child immunization, training and qualification of medical personnel, emergency departments, and a full range of integrated health care services.
Supporting socio-economic growth in Dominica
In September, SFD signed a developmental loan agreement worth $41 million with Dominica to enhance socio-economic growth in the country.
The agreement aims to rehabilitate seven main streets in Roseau, which will help improve road connectivity, reduce congestion, enhance safety and access to basic services, as well as facilitate the smoother movement of people and goods, according to a press statement.
