DUBAI: The UAE and Israel held talks to expand their cooperation in the fields of natural gas and petroleum, state news agency WAM reported on Thursday.
The UAE Ministry of Energy and Infrastructure and the Israeli Ministry of Energy discussed ways to develop bilateral relations between both countries and the future of joint cooperation in energy, petroleum and natural gas.
Both sides further discussed their best achievements in the energy industry during the past decade and the present petroleum and natural gas statistics for each country.
They further reviewed the most significant petroleum projects and gas fields they are currently working on, and the volume of stocks and their rate of production and digital fields.
The UAE and Israel have welcomed the idea of advancing the development of natural gas and petroleum in both countries following the signing of the Abrahamic Accords in Washington earlier this year.
UAE holds talks with Israel on expanding energy sector cooperation
https://arab.news/2nfuu
UAE holds talks with Israel on expanding energy sector cooperation
- Both sides discussed their best achievements in the energy industry during the past decade
- The UAE Ministry of Energy and Infrastructure and the Israeli Ministry of Energy discussed ways to develop bilateral relations between both countries
Financial services firms harnessing AI to revolutionize efficiency and processes, says BNY executive
Financial services firms harnessing AI to revolutionize efficiency and processes, says BNY executive
- Processes that would have taken days or weeks now completed in minutes, thanks to AI
DAVOS: Artificial intelligence is revolutionizing how financial institutions operate by streamlining operations at an unprecedented scale, according to a senior executive at BNY.
Hani Kablawi, senior executive vice president and head of international at the American financial services giant, told Arab News the company had leveraged AI for more than five years to enhance operational efficiency, cybersecurity and decision-making processes within its own operations.
Speaking at the World Economic Forum annual meeting in Davos, he added AI had been instrumental in identifying and rectifying potential trade failures. This has allowed clients to re-enter the market faster and improved liquidity at scale, and allowed BNY to make earlier, more informed investment decisions by providing accurate and constantly updated cash balance data.
“As a result of that, we’ve been able to let clients know that there is latency in their systems early because of behind-the-curve volumes going through accounts,” Kablawi said.
“And in doing so, we’ve given our clients the ability to fix or remediate issues a lot earlier in the process than they might have been able to because we have that data.”
All of which, he added, ensured smoother operations by comparing real-time data with historical patterns.
The recent introduction of the internal AI system “Eliza” at BNY has significantly increased productivity, Kablawi said, adding that preparing insights for client meetings — a task that previously took days or even weeks — could now be completed in minutes.
This efficiency extends across investment, resource allocation and operational decision-making, enabling better-informed and faster outcomes, he said.
The bank is also carefully balancing the use of external AI solutions with internal developments, making sure to integrate capabilities within its own secure infrastructure to maintain control over its vast data holdings.
“We look externally to new capabilities that are being launched and being able to apply that new technology on our data,” he said.
“We’ve got $52 trillion worth of assets in custody and administration, and another $50 trillion in assets under data management, there’s a significant dataset that we’re able to apply the technology to. So, I think we’re in the beginning stages of really extracting the benefits out of AI.”
Saudi Arabia and the wider Gulf region are actively tapping into these benefits, Kablawi added.
Google, AWS and Microsoft Azure are working, albeit on different pathways, on introducing cloud capabilities in the Kingdom and other Gulf markets, while BNY is actively engaging with these providers to ensure their data analytics capabilities can be launched locally.
“As you would expect, we and others are talking to them to make sure that our data analytics capabilities can be launched in-market so that we can comply with local residency data rules, but also enable a data and analytics offering in those markets to a broader market, not just to those that are leading in the space,” he said.
Kablawi highlighted the region’s success in diversifying its stakeholder base through robust trade and investment partnerships, both inbound and outbound.
He emphasized that a well-executed multilateral strategy had strengthened the region’s resilience and created a more stable investment climate, despite heightened geopolitical, energy and climate concerns in the past 18 months. He also noted Saudi Arabia’s particular success in advancing multilateralism, especially over the past five years.
With the inauguration of Donald Trump as the 47th US president having taken place on Jan. 20, Kablawi said many of those in the investor sector would be watching what comes next “with interest.”
He continued: “(With potential) closure of borders and destruction of supply chains or any change in supply chain dynamics, that could create a bit more of an inflationary environment. But we think the growth environment is strong enough that on balance we continue to predict positive flows toward the US (market).”
Saudi Arabia’s natural gas output to grow by 4% in 2025: IEA
RIYADH: Saudi Arabia’s natural gas production is projected to rise by 4 percent in 2025, driven by the planned start-up of key projects, including Jafurah Phase 1 and Tanajib, according to an analysis.
In its Gas Market Report for the first quarter of 2025, the International Energy Agency highlighted that Jafurah Phase 1 will add 2 billion cubic meters of natural gas annually to the Kingdom’s production capacity, while the Tanajib project is expected to contribute 27 billion cubic meters per year.
Saudi Aramco estimates the Jafurah unconventional gas field holds 229 trillion cubic feet of raw gas and 75 billion barrels of condensate. In July 2024, the energy giant secured agreements worth $25 billion for the second phase of the Jafurah development and the third stage of expanding its master gas system.
The IEA report noted that Saudi Arabia’s gas production increased by an estimated 2 percent in 2024, bolstered by the full-year impact of the Hawiyah Gas Plant expansion and the first phase of the South Ghawar unconventional project, which both came online in late 2023.
Additionally, the Kingdom launched operations at the Hawiyah Gas Storage facility in September 2024, marking a milestone in its Liquid Displacement Program, which aims to replace oil with a 50:50 mix of gas and renewables in the electricity sector.
Regional outlook
The IEA’s report highlighted that the Middle East is expected to add more than 20 bcm in natural gas production between 2023 and 2025, representing a 3.3 percent increase.
Oman, which increased output by over 4 percent in 2024, is projected to see an additional 3 percent growth in 2025, driven by production from Block 10 and upgrades to its domestic gas grid.
However, Qatar’s natural gas production declined by 2 percent in 2024 due to shrinking domestic consumption and the accelerated adoption of solar power.
“Gas production in 2025 is expected to remain broadly flat as Qatar’s next major expansion project at North Field East is not expected to start up before 2026,” stated the energy agency.
Iran’s production growth is projected to be modest, with increases of less than 2 percent in 2024 and just over 1 percent in 2025.
The IEA also noted that the Middle East is increasingly turning to natural gas for power generation.
“Natural gas is increasingly displacing oil and oil products in various sectors. This trend is supported by policies, evolving regulatory frameworks and market dynamics,” said IEA.
It added: “In the Middle East, the role of natural gas in the power sector has been increasing in the past decade and oil-to-gas switching continued in 2024, driven by Iran, Iraq, Kuwait and Saudi Arabia.”
Global outlook
Globally, the IEA forecasts tight natural gas markets through 2025, with demand outpacing supply growth.
“Gas market fundamentals have improved over the past year, but for now, we are still seeing significant tightness due to rising demand and muted growth in LNG capacity. Heightened geopolitical uncertainty adds to the risks,” said Keisuke Sadamori, the IEA’s director of Energy Markets and Security.
He added: “While international cooperation on gas supply security has expanded since the recent energy crisis began, greater efforts are needed from responsible producers and consumers, who should strengthen their collective efforts to reinforce the architecture for safe and secure global gas supplies.”
In December 2024, a separate report by the World Bank stated that global natural gas consumption growth in 2024, 2025, and 2026 is expected to return to its pre-pandemic average from 2015 to 2019.
“Growth is primarily driven by the Asia-Pacific region, Middle East and Eurasia. Consumption growth is expected to be similar in 2025 and 2026, with Eurasia demand expected to moderate and European and North American demand to stagnate,” said the World Bank.
It added that the future market dynamics of the gas industry will be influenced by conflict escalation in the Middle East, broader geopolitical developments, and increased competition for LNG shipments.
The IEA also noted that global gas demand rose by 2.8 percent in 2024, significantly outpacing the average growth rate from 2010 to 2020. However, it predicts that growth will slow to below 2 percent in 2025, with Asia accounting for the majority of the rise.
Saudi reserves at central bank grow to $450bn
RIYADH: Saudi Arabia’s reserves at the Kingdom’s central bank saw a 2.8 percent year-on-year rise to SR1.69 trillion ($450.31 billion) in November.
These assets include monetary gold, foreign accounts, and special drawing rights — the International Monetary Fund’s reserve position.
The latter category comprises currency and deposits abroad as well as investments in foreign securities and accounted for 94.6 percent of the total, reaching SR1.6 trillion — an annual rise of 3.12 percent.
Special drawing rights declined to SR77.5 billion, a slight decrease of 0.8 percent, accounting for 4.6 percent of Saudi Arabia’s total reserves.
Created by the IMF to supplement member countries’ official reserves, SDRs derive their value from a basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling.
SDRs can be exchanged among governments for freely usable currencies when needed.
In addition to providing supplementary liquidity, SDRs help stabilize exchange rates, act as a unit of account, and facilitate international trade and financial stability.
The IMF reserve position totaled around SR12.25 billion but recorded an 11.3 percent decline during this period. This category represents the amount a country can draw from the IMF without conditions.
Gold reserves remained steady at SR1.62 billion, a level unchanged since February 2008.
In November, Saudi oil giant Aramco paid $31.1 billion in dividends for the quarter, significantly boosting the country’s reserves.
The Kingdom’s government, which directly holds nearly 81.5 percent of Aramco, receives the majority of these dividends, effectively funneling substantial financial inflows into state coffers.
Investing in foreign assets is a key strategy for SAMA to bolster the nation’s monetary stability and enhance its economic resilience.
Through a diversified portfolio of foreign securities and currency deposits abroad, SAMA ensures liquidity to meet external payment obligations, supports the Saudi riyal’s exchange rate stability, and creates a buffer against global economic fluctuations.
Historically, foreign currency and deposits abroad formed the bulk of Saudi Arabia’s foreign reserves, primarily driven by oil exports. However, since 2004, a shift has been noted in the composition of these reserves.
Data from SAMA shows that investment in foreign securities began to exceed international currency and deposits, rising from a 50.5 percent share in 2004 to 81 percent by June 2007, and standing at 59.75 percent in November.
This shift reflects the Kingdom’s growing focus on diversifying its reserve assets and optimizing foreign reserve management.
To further support oil prices and secure stable oil revenues, Saudi Arabia has played a crucial role in the OPEC+ alliance. Since 2017, the Kingdom has actively participated in oil output cuts to balance global supply and demand.
This strategy, which has kept Saudi Arabia’s production around 9 million barrels per day in recent years, is aimed at supporting oil prices, stabilizing the Kingdom’s oil revenue, and strengthening the global oil market.
Saudi Arabia has been gradually shifting its investment strategy, moving away from holding the majority of its foreign assets within the central bank.
Instead, the focus has been on building substantial sovereign wealth bodies, such as the Public Investment Fund and the National Development Fund, which together manage hundreds of billions of dollars.
This shift aligns with the Kingdom’s broader objective to diversify its reserves and strategically invest in both domestic and international assets.
A key component of this transformation is the Fiscal Sustainability Program, which aims to decouple public spending from fluctuating oil revenues, avoiding the pro-cyclical spending patterns seen in past oil booms.
By expanding PIF and enhancing its capacity to invest in non-oil sectors, Saudi Arabia is actively working to reduce its dependence on oil and ensure a more stable and resilient economic future.
Saudi agritech firm closes $2.55m in seed funding round
RIYADH: Saudi Arabia’s hydroponic farming sector is poised for a boost, as the Kingdom-based agritech startup Arable announces the successful closure of a $2.55 million seed funding round, led by undisclosed investors.
The funding round attracted both institutional and private investors, with 90 percent of the capital coming from foreign investors. The funds will be allocated within Saudi Arabia to help advance the country’s agricultural sector, the company stated in a press release.
Saudi Arabia, facing limited water resources and harsh climate conditions, grapples with significant agricultural challenges, including groundwater salinization.
Hydroponic farming presents a promising solution to improve produce yields and conserve water in the Arabian peninsula—one of the driest regions in the world, with little rainfall.
Arable emphasized that its growth is supported by key strategic partnerships and government backing, which have bolstered the company's progress in the region's agricultural landscape.
“Saudi Arabia offers an unparalleled ecosystem for startups like Arable to thrive. Thanks to the support of organizations such as the Ministry of Environment, Water, and Agriculture, the Ministry of Investment, the National Technology Development Program, and the General Authority of SMEs, we’ve been able to scale rapidly and bring innovation directly into the Kingdom,” said Lawrence Ong, CEO of Arable.
Founded last year by Ong and Christina Khalife, Arable designs and operates hydroponic farming systems. The company claims its innovative approach enables faster, more cost-effective setups with lower operational expenses.
Arable’s goal is to provide an affordable method of vegetable production by growing plants without soil, using nutrient-rich water solutions to deliver essential minerals directly to the roots—ideal for the Kingdom’s challenging desert climate. The company also points out that 80 percent of its system’s components can be sourced or manufactured locally.
The firm aims to contribute to Saudi Arabia’s agricultural transformation by offering a sustainable and scalable solution for growing fruits and vegetables, aligning with the Kingdom’s Vision 2030 goals of reducing food imports and increasing local food production.
“The Saudi Ministry of Investment supports foreign investment and local innovation by streamlining the investor journey and ensuring a seamless experience. At MISA, we facilitate various initiatives and strategies aligned with Vision 2030, supporting the growth of businesses across all sectors, including those such as Arable, which address critical needs such as food security,” said Mohammad Abahussain, deputy minister at the Ministry of Investment.
Hydroponic farming has the potential to thrive even in harsh environments by promoting fibrous root development, which allows better nutrient absorption, reduces the risk of root rot, and accelerates plant maturity.
“Arable’s impressive achievement in raising significant funding, with a majority from international investors, highlights the innovative potential of Saudi Arabia’s agricultural sector,” said Ali Al-Sabhan, general manager of entrepreneurship at MEWA.
He added that the company’s hydroponic system, designed specifically for local conditions and at a significantly reduced cost—with most components sourced locally—sets a new standard for efficiency and sustainability.
“We are proud to have them as part of the Sunbulah platform, as this startup not only enhances our agricultural self-sufficiency but also attracts global interest, aligning perfectly with our vision for a diversified economy,” Al-Sabhan concluded.
A report from MEWA on technology adoption within the Kingdom’s agricultural sectors highlights significant growth in key areas. The global market for agricultural drones, for instance, is expected to surge from $1.1 billion in 2022 to $7.19 billion by 2032, driven by the increasing use of drone technology in precision farming.
At the same time, the overall agricultural market is projected to expand from $13.6 billion in 2022 to $33.6 billion by 2032, with a compound annual growth rate of 9.8 percent, according to the report.
The global agricultural biotechnology market is also set for substantial growth, with forecasts indicating it will rise from $106.62 billion in 2022 to $242.17 billion by 2032. This growth reflects the growing impact of biotech innovations in boosting crop yields and enhancing sustainability.
Trump’s inauguration dominating conversation as warmer Davos raises eyebrows
DAVOS: The World Economic Forum’s Annual Meeting in Davos is welcoming global elites as US President Donald Trump’s inauguration dominates both conversations and headlines.
Day one of the forum’s flagship event was more of a prelude to what is to come, with only one panel taking place, titled “First Impressions: Inauguration Day.”
The rest of the program was free for networking within the Congress Center’s cafes, lounges and hallways. A new booth serving crepes in front of the high-level delegates lounge is a popular addition to this year’s meeting.
What was unpopular — so to say — but widely spoken of, was the warmer weather, an unavoidable consequence of the climate change that the World Economic Forum has so desperately tried to combat.
Indeed, looking out of the window as the SBB train curls around the Swiss Alps overlooking the ski-resort towns of Klosters and Davos, the usually snow-blanketed mountains and hills appear patchy. While nobody complains about the sun shining above, it still serves as a dreadful reminder that not even the elites can hide from the unsuspecting elements affected by humans.
“It’s getting warmer each year. Who knows what will happen five years from now,” one of the drivers of the fleet of shuttles bussing participants back and forth between Klosters and Davos tells me, wearing a tight-fitting short-sleeved shirt and colorful sport glasses.
Davos chic was on full display on the promenade, where pricey suits were paired with clunky snow boots. And with the temperature not dissimilar to that of London’s, participants kept their jackets in the cloak rooms as they walked through the several different tech, government and NGO pavilions that graced the slush-slapped street.
Among the new pavilions — termed “houses” — is Saudi House, dedicated to hosting distinguished, Davos-accredited panels, talks and discussions revolving around Saudi Arabia and its role in the world.
“Saudi House was designed to facilitate the participation of all the (Saudi) government entities taking part in Davos in one location,” Faisal Alibrahim, the Saudi minister of economy and planning, told Arab News in a previous interview.
“We think putting everyone in one place will create the vibrancy that can demonstrate and echo the vibrancy we are seeing here in the Kingdom.”
Other items on display at the house are dishes and drinks from Saudi cuisine. Plates of lamb kabsa — a hearty, spiced rice dish — were lapped up by attendees and washed down with a fluorescent red concoction made from rose-water and hibiscus juice. The other drink, what can only be described as a neon green fluid that looked as if it came from a lava lamp, was a surprisingly refreshing mix of mint and Curacao syrup.
As Washington ushers in a new president, who has vowed to “very simply, put America first” — all those attending the World Economic Forum’s Annual Meeting are bracing themselves to working through another four years of Trumpmania.
