INTERVIEW: Sherpas do the heavy lifting at the U20

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Updated 04 October 2020
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INTERVIEW: Sherpas do the heavy lifting at the U20

  • Innovative financing and investments are on every city’s top priority list

Whether helping climbers reach challenging heights or drafting a troublesome passage of a controversial communique, the job of a sherpa is to do the heavy lifting for the main actors in an ambitious venture.

While Abdulmohsen AlGhannem did not have to carry any heavy physical burdens over the past year as sherpa for the U20 track of the G20, when the final communique was issued, it was the culmination of a long period of demanding work. You might almost imagine him planting a flag on top of the final document, like a climber at the summit of Everest.

“It was a year-long process for the Riyadh chairmanship,” he told Arab News. “We had to understand the ecosystem of the G20 as a whole and the U20 within that, and find out what our role was.”

The U20 specializes in urban issues, and it is a comparatively new element in the G20 set-up.

Whereas the G20 in its present form grew out of the global financial crisis of 2009 and the need for a coordinated response to that emergency, and has been performing the role of global economic and financial overseer ever since, the U20 was only established in Buenos Aires in 2018, and continued in Tokyo last year.

Focusing on the world’s great cities was a natural extension of the G20’s work. Around 55 percent of the world’s population lives in cities or big urban conurbations, and they generate nearly 80 percent of global gross domestic product.

At the same time, however, cities also typify many of the most intractable challenges that the world faces today. They consume a disproportionate amount of energy, they are more vulnerable than other areas to climate change issues, and they are the locations of some of the biggest economic inequalities on the planet with all the social problems that accompany that.

In 2020, cities have also been rocked by the COVID-19 pandemic, and have suffered big hits to traditional urban economic life through lockdowns and migration away from centers of infection.

That presented a new set of challenges for Riyadh, which was hosting the U20 under the chairmanship of Fahd Al-Rasheed, and for AlGhannem.

“When you look at it from the perspective of the U20, you see that local governments form the closest form of governance that touches residents’ lives on a daily basis,” AlGhannem said.

The U20 is just one track of a set of “engagement groups” beneath the main G20 apparatus. 

Others deal with specialist areas such as business, science, womens’ and youth issues. 

“Something that we were able to achieve this year that has not been done before in the U20 has been greater collaboration with other engagement groups, and all of these subjects are things that cities deal with on a daily basis. So we are able to understand their priorities as well as ours.


BIO

Born: Riyadh, 1988

Education: Graduate in urban planning, California State University

Career

  • Internship, City of Calabasas, Los Angeles
  • Urban Planner, Royal Commission for Riyadh City
  • U20 Sherpa to G20

“As a young engagement group, there was not a lot of structure to the U20. So part of our time was invested this year in creating some structure. This is something the cities really appreciate. We sit together and exchange technical viewpoints, our experiences, how we tackle our problems, at an experts’ level,” he said.

In addition to the 20 cities representing the G20 members, this year there were 22 other urban centers as invited observers, as well as “knowledge partners” such as the UN Habitat and World Bank and experts from  academia, urban planning and finance.

One of the innovations of the Riyadh U20 was the creation of task forces to coordinate the main thematic subject matter of the event. Even back in February, when the task forces were set up but before the pandemic forced an end to air travel, the task forces were designed to be virtual meetings.

“That was fortunate, but it also coincided with one of our main priorities in the U20, which was to use technology and innovation to share our experiences.”

The task forces were themed along three main lines: Working toward a circular carbon-neutral economy, the need for inclusive prosperity in cities, and the ambition to reach nature-based solutions in urban environments. 

The strategy was to localize the effort toward the UN’s Sustainable Development Goals through innovation and — especially important — to generate the financial resources to do so.

Carbon neutrality is of special interest to Saudi Arabia, where it chimes both with national energy policy and with the strategy of Riyadh, where AlGhannem was an urban planner before the U20 called him in as sherpa.

“Riyadh is planting 7.5 million trees — one per resident — to help with carbon sequestration, which is one of the elements of carbon neutrality. We are supportive of national government aims, of course, but also want to engage with private business and with citizens. The tree-planting program does that.”

He reported good progress in discussions with financial institutions backing the U20 aims, and said that projects such as tree-planting had important benefits for bigger sectors such as infrastructure investment and water projects in an arid city like Riyadh. 

“Innovative financing and investments are on every city’s top priority list. When it comes to money, we are definitely talking to the right people — the G20 leaders of the world’s biggest economies.”

So the job of sherpa, with liaison between multiple U20 participants, task forces and engagement groups, is a time-consuming and demanding one. But in the end it all boils down to the push to the summit after all that preparation is over — the final negotiations and compromises that enable all parties to agree to a communique encapsulating their positions, but which is also inclusive enough to accommodate often wide-ranging views.

It requires a large measure of empathy and diplomacy. 

“The communique for us is the final document that synthesizes everything that we put into it, and we have to have consensus. We have 42 cities, so this can be a difficult task.”

Preparation was crucial. All 42 cities were involved in the process since February, when they were presented with a skeleton of how the final communique should look, and they were kept updated throughout the process.

“Giving the cities clarity on the process makes them your partners in achieving success. That’s why I keep thanking them, because them understanding the process made the job a lot easier to get consensus among them.”

In the end, the U20 was able to claim a record level of agreement in its final communique, with 39 of the 42 cities signing up by the communique deadline.

“It’s a huge success,” AlGhannem said, adding that some cities were distracted this year by climate challenges and — above all ­— the pandemic’s impact. “They wanted to be vigilant about the rate of spread of COVID and they wanted to keep it under control, which is very understandable.”

Now that he has successfully led the U20 to the summit, AlGhannem will resume his role as an urban planner with the Royal Commission — “my dream job” — where there is a very important project to deliver. 

He has been involved in the transit section of the department for urban and strategic planning, which is responsible for the long-awaited opening of the Riyadh Metro, regarded as a crucial element of the city’s ambitious plans to double its population over the next 10 years.

“Having this public transportation will give us the opportunity to increase density around the stations, diversify land use and transform the city from being car to transit-oriented. It’s a big task.”

He will also get involved in the “troika” arrangements for the next G20, where previous G20 presidencies (Japan) work with the current one (Saudi Arabia) to assist the future host: Italy in 2021.

“We will be very supportive. We have invested a lot of time, money, sleepless nights and gallons of coffee to work on this U20, so we will not stop that. We will continue the momentum and support that.”


Saudi Arabia to welcome Middle East’s first TRIBE hotel in King Salman Park

Updated 23 December 2024
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Saudi Arabia to welcome Middle East’s first TRIBE hotel in King Salman Park

  • TRIBE Riyadh King Salman Park hotel will feature two restaurants, meeting facilities, banquet hall, gym, and swimming pool
  • TRIBE Living will introduce 150 apartments ranging from studios to three-bedroom units

RIYADH: French hospitality group Accor and Naif Alrajhi Investment have signed an agreement to bring the Middle East’s first TRIBE hotel to Saudi Arabia. 

The project, featuring a 250-key property, will be situated within Riyadh’s King Salman Park and will include the debut of TRIBE Living, a new residential community concept. 

The collaboration builds on the partnership between the two entities, which successfully launched Fairmont Ramla Serviced Residences last year, according to a press release. 

This initiative aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and boost the tourism sector, targeting 150 million annual visitors by 2030. 

“The introduction of TRIBE and TRIBE Living to Saudi Arabia showcases our focus on design-led, lifestyle experiences that meet the growing demand for modern, accessible hotel offerings in Riyadh,” said Duncan O’Rourke, Accor’s CEO for premium, midscale and economy brands for Middle East, Africa and Asia Pacific. 

The TRIBE Riyadh King Salman Park hotel will also feature two restaurants, meeting facilities, a banquet hall, a gym, and a swimming pool. 

TRIBE Living will introduce 150 apartments ranging from studios to three-bedroom units, offering residents access to the hotel’s dining and recreational amenities, the release added. 

Since its launch in 2017, the TRIBE brand has grown to 18 hotels with 2,708 rooms globally. 

Riyadh is emerging as a global hub for business and leisure, fueled by growing demand for premium accommodations. Accor aims to capitalize on this trend with 1,683 operational keys in the city and 2,740 in the pipeline. 

The announcement follows the King Salman Park Foundation’s plan to develop its first real estate investment plot in collaboration with Naif Alrajhi Investment. 

“We are delighted to be working with Accor once again, a trusted partner, to introduce new and iconic brands to the local market for the first time. This partnership is a significant step forward in our ongoing commitment to delivering world-class destinations that cater to both local and international audiences,” Naif Saleh Al-Rajhi, chairman and CEO of Naif Alrajhi Investment. 

The project is part of King Salman Park’s Package 1, a 290,000-sq.-meter mixed-use development featuring residential, commercial, retail, and recreational spaces. The district is strategically located near the park’s key attractions, such as the Royal Arts Complex and Visitors Pavilion. 

Accor is planning substantial growth in the Kingdom, with 45 new establishments and 9,800 keys expected by 2030, O’Rourke told Arab News in May. 

Saudi Arabia’s hospitality sector has gained momentum, driven by large-scale events such as Riyadh Season and AlUla Season. 

A report by JLL released earlier this month highlighted that urban infrastructure development is creating new opportunities in the Kingdom, driven by the government’s push for economic diversification and increased tourism.


Closing Bell: Saudi main index closes in green, reaches 11,949 points

Updated 23 December 2024
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Closing Bell: Saudi main index closes in green, reaches 11,949 points

  • MSCI Tadawul Index increased by 15.52 points, or 1.05%, to close at 1,500.07
  • Parallel market Nomu lost 285.18 points, or 0.91%, to close at 30,953.11 points

RIYADH: Saudi Arabia’s Tadawul All Share Index increased by 0.84 percent or 99.42 points to reach 11,948.79 points on Monday. 

The total trading turnover of the benchmark index was SR4.9 billion ($1.3 billion), as 111 of the listed stocks advanced, while 117 retreated. 

The MSCI Tadawul Index also increased by 15.52 points, or 1.05 percent, to close at 1,500.07. 

The Kingdom’s parallel market Nomu dropped, losing 285.18 points, or 0.91 percent, to close at 30,953.11 points. This comes as 32 of the listed stocks advanced while 51 retreated. 

The main index’s top performer, Zamil Industrial Investment Co., saw a 4.31 percent increase in its share price to close at SR33.90. 

Other top performers included Saudi Reinsurance Co., which saw a 4.20 percent increase to reach SR47.15, while the Mediterranean and Gulf Insurance and Reinsurance Co.’s share price rose by 4.16 percent to SR23.52. 

Red Sea International Co. also recorded a positive trajectory, with share prices rising 3.89 percent to reach SR56.10. 

Kingdom Holding Co. also witnessed positive gains, with 3.75 percent reaching SR9.13. 

National Co. for Learning and Education was TASI’s worst performer, with the firm’s share price dropping by 3.94 percent to SR204.60. 

Aldrees Petroleum and Transport Services Co. followed with a 3.84 percent drop to SR120.20. Riyadh Cement Co. also saw a notable drop of 3.61 percent to settle at SR32.05. 

Walaa Cooperative Insurance Co. and MBC Group Co. were among the top five poorest performers, with shares declining by 3.52 percent to settle at SR17.56 and by 3.17 percent to sit at SR54.90, respectively. 

On the announcement’s front, Almujtama Alraida Medical Co. disclosed that Khabeer Althanyia Investment Co. — a major shareholder — has announced its intention to distribute and deposit its 630,673 shares in Almujtama Alraida, representing 6.64 percent of the company’s capital, into the investment portfolios of its current partners. 

The move, according to a filing on Tadawul, will result in changes to the list of the company’s major shareholders. 

Almujtama Alraida Medical Co.’s share price dropped 2.91 percent on Monday to settle at SR30.05. 

Najran Cement Co. announced that its shareholders approved the transfer of SR163.62 million from its statutory reserve, as reported in its financial statements for the year ending Dec. 31, 2023, to its retained earnings balance of SR138.15 million. 

The decision was made during the company’s extraordinary general meeting held on Dec. 22, according to a statement on Tadawul. 

Shareholders also approved the repurchase of up to 17 million shares to be held as treasury shares, citing the board’s view that the company’s stock is trading below its fair value. 

The share buyback will be financed through the firm’s resources, including cash balances or credit facilities, with the board authorized to complete the process within 12 months of the meeting date. 

The repurchased shares can be retained for a maximum of 10 years, after which the company will comply with applicable laws and regulations, the statement said. 

Najran Cement Co.’s share price saw a 1.22 percent dip on Monday to close at SR8.92.


Saudi Arabia inaugurates Yanbu Grain Terminal to boost food security, trade

Updated 23 December 2024
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Saudi Arabia inaugurates Yanbu Grain Terminal to boost food security, trade

  • Yanbu Grain Handling Terminal will serve public and private sector importers
  • It boasts a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes

RIYADH: Saudi Arabia has inaugurated the Yanbu Grain Handling Terminal, underscoring the Kingdom’s efforts to strengthen public-private partnerships, enhance agricultural trade, and bolster food security across the region.

The event was attended by Abdulrahman Al-Fadli, minister of environment, water and agriculture, and by various government and private sector officials, according to the Saudi Press Agency.

The Yanbu Grain Handling Terminal will serve public and private sector importers, and boasts a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes.

Food security has risen up the agenda in recent years, as countries in the Gulf contend with the impacts of climate change, the consequences of trade-disrupting conflicts such as the Ukraine-Russia war, and interruptions to supply routes through the Red Sea.

In September 2022, in response to these challenges, the Kingdom collaborated with regional partners to launch a food security action plan with an initial funding of $10 billion.

The Yanbu Grain Handling Terminal will be operated by the National Grains Co., a joint venture between the national shipping carrier Bahri and the Saudi Agricultural and Livestock Investment Co.

It features a 650-meter conveyor belt and a discharge rate of 800 tonnes per hour directly from ships, with an annual handling capacity exceeding 3 million tonnes of grain.

According to Bahr’s statement to the Saudi Stock Exchange, the inauguration delay was caused by the inclusion of additional requirements to enhance future operational efficiency, along with the construction of extra infrastructure to accommodate potential future expansions.

The company said that because of this the total project cost rose by 7 percent from the initially allocated SR412.5 million ($109.7 million), though the increase is not deemed significant.

The Yanbu Grain Handling Terminal aims to become a world-class logistics hub, connecting three continents and supporting the Kingdom’s vision for a resilient and efficient agricultural supply chain.

Established in 2020 as a strategic partnership between SALIC and Bahri, the National Grain Co. aims to fulfill the Kingdom’s future feed grain requirements while enhancing its global competitiveness.

It is committed to advancing grain trade, handling, and storage through the Yanbu terminal, strengthening supply chains and ensuring price stability across Saudi Arabia.

SALIC, a Public Investment Fund-owned company, was formed in 2011 to secure food supply for Saudi Arabia through mass production and investment.

When the project was announced in 2020, Al-Fadli, who is also the chairman of SALIC’s board of directors, said: “The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu.”

 

He added that SALIC relies on the geographical location of the Kingdom and the port infrastructure to enhance food distribution in the region by linking the Kingdom to global grain sources, especially countries where SALIC is investing.

 

A grain delivery service to customers within the Kingdom has been introduced as part of the project, ensuring greater proximity to clients, enhanced customer experience, and improved profitability margins.


UAE’s ADNOC boosts drilling capabilities with 2 new jack-up rigs

Updated 23 December 2024
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UAE’s ADNOC boosts drilling capabilities with 2 new jack-up rigs

  • ADNOC Drilling will expand its fleet to 142 platforms
  • UAE possesses the sixth-largest crude oil reserves globally

JEDDAH: The Abu Dhabi National Oil Co. has received two new jack-up rigs, reinforcing its position as one of the largest drillship fleet owners globally.

ADNOC Drilling will launch the new rigs by the first quarter of next year, expanding its fleet to 142 platforms. This marks a strong year for the company, showcasing its performance and strategy, according to UAE state news agency WAM.

For over 50 years, ADNOC Drilling has been the exclusive provider of drilling and rig-related services to ADNOC Group under agreed contractual terms, supporting the firm’s upstream operations in exploring and developing oil and gas resources in the UAE.

With most of the Gulf country’s crude oil and gas reserves located in Abu Dhabi, ADNOC oversees the majority of nationwide exploration, appraisal, development, and production activities, which are managed by ADNOC, either independently or in partnership with third parties.

In its analysis of the company’s performance, JPMorgan, a global financial services firm, said: “Since its initial public offering, ADNOC Drilling has proven to be a high-quality, defensive business, consistently meeting and surpassing guidance and expectations. The exceptional performance also reflects positive progress with ADNOC Drilling’s two joint ventures.”

The UAE possesses the sixth-largest crude oil reserves globally, with approximately 107 billion stock tank barrels of proven oil reserves. Since its inception in 1972, ADNOC Drilling has played a crucial role in enabling ADNOC to unlock the country’s oil and gas resources efficiently and reliably, contributing to the nation’s energy sector.

This year, Enersol, a joint venture between Alpha Dhabi Holding and ADNOC Drilling, acquired four oilfield services technology companies, while Turnwell, another business partnership between ADNOC, SLB, and Patterson-UTI, set a record for initial well delivery time, accelerating the development of the UAE’s unconventional energy reserves.

Following its second upward guidance revision this year alongside its third-quarter results, ADNOC Drilling is on track to deliver its best-ever performance in Q4. ADNOC Drilling anticipates at least mid-single-digit expansion as it scales operations, according to WAM.

ADNOC forecasts a rise in drilling activity in the coming years, driven by its commitment to increasing crude oil production capacity by 25 percent, reaching five million barrels per day by 2027.

As the company looks to expand beyond the UAE and explore opportunities in the region, it foresees a growing need to expand its rig fleet to support its strategic growth plans.

The energy giant believes that expanding its rig fleet will enhance its current capabilities in rig hire, drilling, completion services, and associated operations and enable the company to offer unconventional drilling and biogenic well services. This expansion is expected to contribute to increased revenue and profitability.


Terminal 4 at Cairo International Airport to boost Egypt’s aviation and tourism sectors

Updated 23 December 2024
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Terminal 4 at Cairo International Airport to boost Egypt’s aviation and tourism sectors

  • Project is expected to bolster the country’s tourism goals and improve traveler experiences
  • Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index

RIYADH: Egypt is advancing its aviation sector with the ongoing development of Terminal 4 at Cairo International Airport, set to accommodate 30 million passengers annually.

According to a statement from the Cabinet, the “New Republic Air Gateway” project is expected to bolster the country’s tourism goals, improve traveler experiences, and position Egypt as an international aviation hub.

This year, the government announced plans to involve the private sector in airport management, including a global tender for Cairo International.

Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index, aligning with Vision 2030’s focus on sustainable development, innovation, and global competitiveness.

Prime Minister Mostafa Madbouly, during a meeting at the New Administrative Capital, reviewed progress on the project alongside Minister of Civil Aviation Sameh El-Hefny. The session focused on the terminal’s specifications, implementation strategy, and potential to reshape the African nation’s aviation and tourism landscapes.

“Airport development works come within the framework of presidential directives to upgrade the Egyptian airport system, raise its capacity and improve the level of services provided to passengers,” he said.

At the meeting, Madbouly emphasized the importance of creating world-class facilities to accommodate rising traveler numbers. 

El-Hefny outlined the project’s phased execution, with completion expected within four to five years. He also revealed that negotiations are underway with international firms specializing in airport construction and management to ensure world-class execution. 

The minister emphasized the cutting-edge features of the new terminal, including its ability to initially handle 30 million passengers annually, with expansion potential to 40 million. 

In September 2023, Cairo Airport Co. partnered with Pangiam, a trade and travel technology company, and signed two agreements to develop the new terminal. These deals, focused on enhancing the airport’s operations with advanced technology, include a feasibility study to incorporate emerging technologies and deliver a seamless travel experience.

The terminal will feature a state-of-the-art runway equipped with advanced navigation and lighting technologies that meet international standards. 

Once operational, Terminal 4 is expected to elevate Cairo International Airport’s global status, making it a hub for regional and international travel.