AS IT HAPPENED: Day two of COP26 sees new pledges for greener world, but is it enough?

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Joe Biden reacts during a meeting on "the Build Back Better World (B3W)", as part of the World Leaders' Summit of the COP26 UN Climate Change Conference in Glasgow. (AFP)
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Will anything change? Greta and other critics have their doubts. (File/AFP)
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Updated 03 November 2021
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AS IT HAPPENED: Day two of COP26 sees new pledges for greener world, but is it enough?

GLASGOW: World leaders reached agreements on deforestation, curtailing methane emissions and as the initial phase of COP26 came to an end on Tuesday.

More than 100 countries, including the US, China and Brazil, signed a pledge to “collectively halt and reverse forest loss and land degradation by 2030 while delivering sustainable development and promoting an inclusive rural transformation.”

Meanwhile, US President Joe Biden launched a plan to reduce methane emissions, a gas that contributes significantly to global warming. 

The announcement was part of a broader effort with the European Union and other nations to reduce overall methane emissions worldwide by 30% by 2030.

But there were also tensions with Biden accusing the leaders of China and Russia of making a “big mistake” by not attending the event.
 Boris Johnson said he was feeling cautiously optimistic - but warned against “false hope”.

Here are the highlights of the events of day 2, Tuesday, as they unfold (all times are GMT):

07.40pm: Joe Biden wraps up the day with a final press conference in which he claims there had been historic progress during the opening days of COP26 on addressing global warming.

However, he took aim at Russian President Vladimir Putin and China's leader Xi Jinping for not attending, calling it a big mistake.

07.25pm: US President Joe Biden said that China’s leader Xi Jinping made a “big mistake” by not attending the Glasgow climate and G20 summits but said he hoped for talks to prevent conflict.
“It’s been a big mistake, quite frankly, for China not showing up. The rest of the world looked at China and said ‘what value are they providing?’,” Biden added.

06:15pm: Frank Kane has written a piece about President Joe Biden's cynicism towards other nations at COP26 and how a little less skepticism might persuade the rest of the world to follow his lead.

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This section contains relevant reference points, placed in (Opinion field)

05:20pm: UK Prime Minister Boris Johnson held a press conference in which he outlined some of the commitments made during the first two full days of COP26. 

“We must take care to guard against false hope and not to think in any way that the job is done, because it is not - there is still a very long way to go,” Johnson said. “But all that being said, I am cautiously optimistic.”

He said they were still pushing to reach a target of $100 billion to help poorer nations. On China, Johnson said President Xi Jinping's absence from the conference “doesn't mean the Chinese are not engaging.” 

Johnson also praised India for making a big commitment by saying it would increase its use of clean energy.

05:45pm: Read more of Arab News’ coverage on COP26.

Saudi ambassador to the UK: Kingdom ‘can lead world’ on climate change

Erdogan’s COP26 retreat an environmental, democratic failure: Experts

Greta Thunberg tells young protestors COP26 won’t help climate

03.54pm: Kuwait’s Prime Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah affirmed Kuwait’s keenness to adopt a national low carbon strategy until 2050.
He said the national strategy is based on a circular carbon economy to promote the reduction, disposal, reuse and recycling of greenhouse gases.
Legislation and laws will be enacted to support the strategy to reduce emissions and adapt to their negative effects at the national level, in line with local, regional and international environmental obligations, Sheikh Sabah Al-Khaled added.


“Kuwait, in compliance with Paris Climate Agreement, updated its contributions document on Oct 12, 2021, whereby Kuwait contributes to a package of development projects based on a vision that would avoid an increase in greenhouse gases equivalent to 7.4 percent of its total emissions until 2035,” he said.
Sheikh Sabah Al-Khaled said that Kuwait attaches great importance to diversifying the country’s energy sources by introducing renewable energies and replacing fossil fuels with liquefied gas to ensure the sustainability of energy supplies for future generations.

03.24pm: Bahrain’s Crown Prince Salman bin Hamad said the kingdom is committed to reaching net zero by 2060 and has set a range of ambitious interim goals to ensure that we proceed without delay. 
“By 2035, we will reduce emissions by 30 percent through decarbonization and efficiency initiatives and double our deployment of renewables from the targets we set at COP21,” he said.


“Our 2035 targets also include carbon removal solutions by quadrupling mangrove coverage, doubling tree coverage in Bahrain, and directly investing in carbon capture technologies, which we believe is essential,” Prince Salman added.

03.09pm: US President Joe Biden announced a joint US-UAE Agriculture Innovation Mission for Climate (AIM for Climate) “to catalyze public and private investment in climate-smart agriculture and food systems innovation” over the next five years.

01.40pm: President Joe Biden thanks everyone who signed the "game-changing commitment" to reduce methane emmissions.

12:43pm: Turkish president Recep Tayyip Erdogan’s last-minute withdrawal from the COP26 Summit in Glasgow this week is yet more evidence of his disastrous environmental strategy and his inability to listen to his own people, experts have told Arab News.

12:38pm: Countries pledge 30% reduction in methane emissions.

12:30pm: Japanese PM Kishida says Japan is ready to offer up to $10bn in additional assistance for decarbonization in Asia

 

 

09:45am: China says President Xi Jinping was not given an opportunity to deliver a video address to the COP26 climate talks. 

08:41am: BlackRock Inc says it has raised $673m for an infrastructure fund with backing from the French, German and Japanese governments to invest in climate-focused projects such as renewable energy in emerging markets.

06:00am : In an interview published today, the Saudi Arabian ambassador to the UK, Prince Khalid bin Bandar told Arab News that the Kingdom was “ready, willing and able” to lead the world in tackling climate change and global warming.

 

 

 


Global sustainable bond issuance to reach $1tn in 2025: Moody’s

Updated 26 January 2025
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Global sustainable bond issuance to reach $1tn in 2025: Moody’s

  • Impending maturity wave is set to escalate, signifying additional refinancing requirements alongside regular issuance goals
  • Moody’s said ESG risks this year will be influenced by policy decisions and financing.

RIYADH: Global sustainable bond issuance is projected to reach $1 trillion in 2025, driven by a worldwide focus on green development, according to global credit rating agency Moody’s.

In their latest report, the New York-based firm said that increased examination of greenwashing, changes in market norms and regulations, and a more intricate landscape, which includes political challenges in certain nations, are expected to impede growth.

This aligns with the green bond market, which has advanced a decade beyond the international treaty on climate change that was signed in 2016, known as the Paris Agreement. The market provides a boost to the sector as initial issuances are gradually approaching maturity. 

The impending maturity wave is set to escalate this year and 2026, signifying additional refinancing requirements alongside regular issuance goals, according to capital market firm AXA Investment Managers.

“We expect global sustainable bond issuance to total $1 trillion in 2025, in line with 2024. Social bonds will be constrained by a lack of benchmark-sized projects, while transition-labeled bonds and sustainability-linked bonds will remain niche segments as they navigate evolving market sentiment,” Moody’s report said.

“A continued focus on climate mitigation financing, as well as growing interest in climate adaptation and nature, will spur green and sustainability bond issuance,” it added. “Meanwhile, the widening gaps between decarbonization ambitions and implementation will be brought into focus by the contrast of fresh pledges and increasingly destructive climate events.”

Regarding the outlook on environmental, social, and governance factors, Moody’s said the risks this year will be influenced by policy decisions and financing.

“Companies will encounter challenges in handling environmental and social risks within their supply chains. Additionally, technological disruptions, climate change, and demographic shifts could exacerbate social risks and pose policy obstacles for governments,” the agency added.

In November, Moody’s said that global issuance of sustainable bonds in the third quarter of last year reached $216 billion, marking a 9 percent annual increase.

It said at the time that the year-on-year increase in green, social, sustainability, and sustainability-linked bonds came despite a quarter-on-quarter drop, with the volume issued down 14 percent in the three months to the end of September compared to the preceding period. 

For the first nine months of 2024, sustainable bond volumes reached $769 billion, marking a 3 percent decline compared to the same period last year. 

Despite the quarterly dip, Moody’s forecasted that the total sustainable bond volumes will reach $950 billion in 2024 “buoyed by relatively robust volumes in the first half of the year and continued issuer appetite for funding environmental and social projects with labeled bonds.”


Saudi benchmark index inches up 0.26% to close at 12,386

Updated 26 January 2025
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Saudi benchmark index inches up 0.26% to close at 12,386

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 32.12 points, or 0.26 percent, to close at 12,386.16.

The total trading turnover on the benchmark index reached SR5.11 billion ($1.36 billion), with 161 stocks advancing and 69 retreating.

The Kingdom’s parallel market, Nomu, also saw a modest gain, rising 49.70 points, or 0.16 percent, to close at 30,896.29, as 49 stocks advanced and 42 declined.

The MSCI Tadawul Index closed up by 2.01 points, or 0.13 percent, finishing at 1,545.39.

Kingdom Holding Co. emerged as the day’s top performer, with its share price surging 9.80 percent to SR10.20. Other notable performers included Al-Baha Investment and Development Co., which rose 9.30 percent to SR0.47, and Saudi Fisheries Co., whose share price jumped 7.84 percent to SR24.28.

On the downside, Al-Jouf Cement Co. recorded the largest drop, falling 3.57 percent to SR12.44. Arabian Pipes Co. also saw its stock decline by 2.50 percent, closing at SR13.26, while Rasan Information Technology Co. dropped 1.94 percent to SR90.80.

On the announcements front, Al-Baha Investment and Development Co. announced its annual financial results for the period ending Dec. 31. The company reported a net profit of SR8.37 million for 2024, a 69.48 percent increase compared to 2023. The growth was primarily driven by a 13 percent rise in revenues, a 98 percent drop in zakat provisions, a 39 percent reduction in financing costs, and a decline of SR1.18 million in investment properties.

Al-Moammar Information Systems Co. has signed a SR58.6 million contract with the Saudi Authority for Data and Artificial Intelligence to enhance the AI network through software and services.

According to a bourse filing, the 36-month deal is expected to generate positive financial impacts starting in Q1 2025. The stock closed at SR160.40, up 0.51 percent.

Al-Sagr Cooperative Insurance Co. received an Insurer Financial Strength Rating of “BBB” and a National IFS Rating of “A+” with a stable outlook from Fitch Ratings.

The ratings reflect Al-Sagr’s strong capitalization, solid financial performance, and well-diversified insurance portfolio, despite its moderate operating scale within the Saudi insurance market. Al-Sagr’s stock closed at SR18.10, up 3.20 percent.


Saudi-based Walaa Cooperative Insurance Co. maintains ‘A-’ rating: S&P Global

Updated 26 January 2025
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Saudi-based Walaa Cooperative Insurance Co. maintains ‘A-’ rating: S&P Global

  • S&P expects Walaa to maintain this level of capital adequacy over the next two years
  • It also expects the company to gradually improve its combined ratio to about 98% in 2025—2026

RIYADH: Saudi Arabia’s Walaa Cooperative Insurance Co. maintained its “A-” long-term insurer financial strength rating by S&P Global, with a stable outlook. 

The New York-based credit rating agency also affirmed its “gcAAA” long-term Gulf Cooperation Council regional scale rating and “ksaAAA” long-term Saudi national scale assessment for Walaa, highlighting the insurer’s capital position and planned business growth initiatives. 

This comes as the company completed an SR468 million ($124.8 million) rights issue in December 2024, initially announced in September 2023. 

The additional capital will support the firm’s growth strategy and enhance its regulatory solvency margin. 

S&P said Walaa’s capital adequacy exceeded its 99.99 percent confidence level before the reserve increase, with the recent capital injection further strengthening the company’s financial stability. 

The rating agency expects Walaa to maintain this level of capital adequacy over the next two years, underpinning its stable outlook. 

The firm’s stock price has already seen a significant 5.26 percent increase by 2:20 p.m. Saudi time to reach SR24. 

Despite its strong capital position, Walaa’s operating performance has lagged behind similarly rated peers, according to S&P. 

At the end of the third quarter of last year, the company ranked as the fifth largest insurer in the Kingdom, with insurance revenue reaching SR2.4 million and a growth rate of 17 percent. 

However, the insurer faced challenges in profitability, driven by its medical insurance segment.

The combined ratio — a key measure of underwriting performance — stood at 101 percent for the third quarter of 2024, compared to 98 percent during the same period the previous year. 

While the motor insurance segment, which experienced losses between 2021 and 2023, returned to profitability in 2024, reporting a service result of SR18 million for the third quarter, Walaa’s medical insurance business posted a significant loss of SR85 million during the same period. 

This marks a sharp decline from the SR4 million loss recorded in the third quarter of 2023. The company plans to expand its medical insurance segment over the next two years, aiming for breakeven by the year’s end. 

S&P said the goal may be challenging due to the competitive and concentrated nature of the medical insurance market in Saudi Arabia, which is projected to reach $4.33 billion this year, according to German online data gathering platform Statista. 

The medical segment is dominated by The Co. for Cooperative Insurance and Bupa Arabia for Cooperative Insurance, which collectively accounted for 76 percent of market revenue and most of the segment’s profitability in the third quarter of 2024, according to S&P. 

Walaa’s ability to achieve breakeven in this segment will play a critical role in the recovery of its overall performance. 

S&P expects Walaa to gradually improve its combined ratio to about 98 percent in 2025— 2026 as it continues to diversify its business and recover its operating performance. 

The agency also flagged potential risks, including the possibility of a negative rating action if Walaa’s underwriting performance is weaker than its local and regional peers or if its capital adequacy falls below the 99.95 percent confidence level. 

S&P views the likelihood of a rating upgrade as limited during the outlook period. Any positive rating action would depend on Walaa’s ability to significantly increase and diversify its premium income without impairing operating performance, while maintaining capital adequacy at the 99.99 percent confidence level and a low-risk investment portfolio. 


World leaders to attend Saudi Real Estate Future Forum 2025 for industry-shaping discussions

Updated 26 January 2025
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World leaders to attend Saudi Real Estate Future Forum 2025 for industry-shaping discussions

  • Event will gather over 300 speakers from 85 countries to lead discussions on the direction of real estate
  • Key themes and sessions at RFF 2025 will encompass various topics, with over 30 high-level dialogue events and 25 in-depth workshops

RIYADH: The Real Estate Future Forum is set to serve as a global hub for industry leaders, policymakers, and investors as Saudi Arabia transitions toward a diversified and innovation-driven economy.

The event will be held from Jan. 27— 29 at the Four Seasons Hotel in Riyadh and will gather over 300 speakers from 85 countries to lead discussions on the direction of real estate.

Under the theme “Future for Humanity: Shaping Dreams into Reality,” RFF 2025 will focus on innovations, sustainability efforts, and investment strategies reshaping the global property market.

This year’s edition will also spotlight the Middle East’s $1 trillion real estate pipeline, which is driving changes in urban development and creating new regional economic opportunities.

 

Saudi Arabia at the forefront of real estate evolution

The Kingdom’s Vision 2030 reforms have positioned the country as a leader in real estate development, combining innovation, sustainability, and economic growth. 

Forum participants will get an in-depth look at major projects, including NEOM, The Red Sea Project, and Diriyah Gate, and their economic impact and long-term sustainability.

The discussions will provide insights into how these initiatives are influencing the broader real estate landscape.

A $1 trillion opportunity for global transformation

With the Middle East witnessing an unprecedented wave of urban expansion, the real estate sector has immense opportunities and critical responsibilities.

 

This year’s forum will highlight how key stakeholders can leverage digital transformation, sustainable construction, and strategic investments to build cities that are economically viable, environmentally responsible, and socially inclusive.

Benjamin Deschietere, managing director and partner at Boston Consulting Group, underscored the urgency of sustainability in real estate development.

“The Middle East’s $1 trillion real estate pipeline offers a once-in-a-generation opportunity to rethink how we design and build our communities,” he told Arab News.

“With buildings accounting for more than one-third of global greenhouse gas emissions, decisions made today in the region’s transformative mega-projects will impact generations and have the potential to influence global standards for decades,” he added.

Deschietere said that sustainability in design, the use of greener materials, and advancements in construction and procurement practices are essential rather than optional. 

He said cities built with these principles would be more resource-efficient, livable, and valuable in the long term, adding that developers who adopt these approaches would gain a significant competitive edge in the coming decades

Benjamin Deschietere, managing director and partner at Boston Consulting Group. Supplied

A holistic approach to sustainability and innovation

RFF 2025 will focus on environmental sustainability and social and economic resilience. With the Kingdom’s target of developing 1 million new housing units by 2030, the forum will discuss how sustainable urbanization can drive affordability, job creation, and social equity.

Edoardo Geraci, managing director and partner at BCG, told Arab News of the need for a paradigm shift. “Traditional real estate has often prioritized growth over sustainability, but the future demands a more holistic approach.”

He added that beyond reducing carbon emissions, sustainable development must also consider social outcomes, such as inclusivity, affordability, and job creation. 

“Passive design principles and smart building technologies already enable a reduction of lifecycle carbon emissions by up to almost 40 percent, offering significant cost savings over time,” the expert said.

Geraci also said the Middle East has a distinct chance to demonstrate how well-planned urban development can improve the quality of life, restore natural resources, and establish new standards for sustainable and resilient cities on a global scale.

Edoardo Geraci, managing director and partner at Boston Consulting Group. Supplied

RFF 2025 themes and sessions 

Key themes and sessions at this year’s forum will encompass various topics, with over 30 high-level dialogue events and 25 in-depth workshops. 

Discussions on smart cities and digital transformation will explore the role of artificial intelligence and blockchain in real estate transactions and homeownership, innovations in smart buildings and urban infrastructure, and the impact of big data on market forecasting and investment strategies. 

Sustainable real estate and green building innovations will be another focal point, addressing the shift toward net-zero developments and green architecture, sustainable financing models for eco-friendly projects, and case studies from leading sustainable cities and giga-projects. 

Real estate investment and financing trends will be examined, with insights into alternative financing models for large-scale undertakings, the impact of global economic shifts on Middle Eastern real estate markets, and future trends in institutional investment and private sector involvement. 

 

The forum will also highlight the role of giga-projects in economic growth, offering perspectives from key players behind NEOM, The Red Sea Project, and Diriyah Gate, while discussing how these developments are shaping tourism, hospitality, urban living, the intersection of real estate, entertainment, and sports infrastructure.

RFF 2025 will provide an outlook on integrating advanced technologies into the real estate sector. Panels will dive into emerging trends like virtual reality for property marketing, the role of the metaverse in digital real estate, and the use of robotics and 3D printing in construction. The implications of these technologies for efficiency, cost savings, and consumer experiences will be examined.

Another focus will be community-centered urban planning and sessions will address the importance of inclusivity and accessibility in development projects, exploring how innovative housing models and mixed-use initiatives can enhance quality of life and foster social and economic prosperity. 

The forum will also discuss sustainable procurement practices and supply chain transformation, offering insights into minimizing waste and achieving carbon neutrality in mega-projects. 

 

The three-day event is set to feature a distinguished lineup of speakers, including government officials, global investors, and media personalities who will provide valuable insights into industry-shaping trends. 

Notable speakers include Majid Al-Hogail, Saudi minister of municipalities and housing; Turki bin Talal, governor of Asir region; Saud bin Talal, governor of Al-Ahsa; former US President Bill Clinton; international media influencer Piers Morgan; and global media commentator Tucker Carlson. 

With Vision 2030 strongly supporting tourism and lifestyle projects, discussions will explore how cultural preservation and modern innovation coexist in urban developments. 

Sessions will delve into the design of projects such as New Murabba and Trojena in NEOM, examining how these ventures are redefining the Kingdom’s global image while fostering sustainable growth. 

Insights into the transformative impact of major sporting and entertainment events on real estate demand and city planning will highlight the sector’s potential to drive broader socio-economic change.

 

A platform for transformative deals and partnerships

The 2024 edition of RFF saw over 50 agreements worth SR100 billion ($26.6 billion) signed, driving investment in key real estate projects. 

The 2025 forum is expected to eclipse those numbers, offering an even greater platform for deal-making, policy announcements, and strategic partnerships.

A Glimpse into the Future

The Kingdom’s real estate sector is on the cusp of a technological and financial revolution driven by digital transformation, sustainable design, and forward-thinking policies. 

As Vision 2030 continues to guide the nation toward an economically diversified and innovation-driven future, RFF 2025 will serve as a platform for international investors, developers, and policymakers looking to tap into the region’s potential.

RFF 2025 will offer various opportunities for networking, collaboration, and sharing expertise, making it a key event in the ongoing development of the global real estate industry.


Oman’s inflation rate edges up 0.7% in December

Updated 26 January 2025
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Oman’s inflation rate edges up 0.7% in December

RIYADH: A rise in the prices of several categories of consumer products pushed Oman’s annual inflation rate up by 0.7 percent in December compared to base year 2018, according to new data.

The rise in inflation was driven by increases in several key categories, including miscellaneous goods and services, which surged by 4.5 percent, health services by 3.2 percent, and food and non-alcoholic beverages by 1.7 percent, according to the National Center for Statistics and Information reported. 

Food and non-alcoholic beverages saw a 1.7 percent price hike, while the restaurant and hotel group rose by 0.8 percent. Other sectors, including culture and entertainment, clothing and footwear, and furniture and household maintenance, also experienced minor price increases. 

Despite this, Oman’s inflation remains among the lowest in the region, as the government has implemented measures to contain price rises. This effort has been supported by prudent fiscal policies, high oil prices, and growth in non-hydrocarbon exports. 

These factors helped the country achieve a 6.2 percent budget surplus and a 2.4 percent current account gain in 2024. 

The latest CPI data also highlighted specific price hikes in food categories. Vegetables saw a significant 7.6 percent increase, followed by milk, cheese, and eggs at 3.8 percent. 

Other food products not categorized elsewhere rose by 3.7 percent, while sugar, jam, honey, and sweets increased by 2.8 percent. Meat prices were up 2.6 percent, fruits rose by 2.2 percent, and oils and fats climbed by 1.6 percent. 

On the downside, transportation costs fell by 0.8 percent, non-alcoholic beverages dropped by 0.5 percent, and fish and seafood prices plunged by 6.3 percent. Prices in the housing, water, electricity, gas, and other fuels sectors remained stable, as did communications and tobacco prices.  

For 2025, Oman projects a modest 2.7 percent growth in gross domestic product, while IMF projections released earlier this month point to a more optimistic 3.1 percent expansion. The inflation rate has been easing in recent months, declining to 0.6 percent during the first 10 months of 2024, down from 1.0 percent in 2023.