UAE’s DEWA eyes $2bn profit next year, will not sell more stock

The state-owned utility provider had recently drawn strong investor interest when it floated an 18 percent stake, in the region’s top initial share sale since oil giant Saudi Aramco.
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Updated 25 April 2022
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UAE’s DEWA eyes $2bn profit next year, will not sell more stock

RIYADH: After raising $6.1 billion in a record initial public offering, the CEO of the Dubai Electricity and Water Authority said the firm has no plans to sell more stock.

It is also eyeing 7.4 billion dirhams ($2 billion) in 2023 profit, amid a prospective IPO of its district cooling unit by the end of this year, Saeed Al-Tayer told Bloomberg.

The state-owned utility provider had recently drawn strong investor interest when it floated an 18 percent stake, in the region’s top initial share sale since oil giant Saudi Aramco.

“As Dubai expands, DEWA foresees continuous growth in all our main lines of business,” Al-Tayer said.

He added that the size and timing of the potential offering of 70 percent-owned Emirates Central Cooling Systems Corp., known as Empower, are still “under study.”

DEWA is seeking to spend 40 billion dirhams to expand over the next five years, with more focus on renewable energy, according to Bloomberg.


Saudi Arabia to boost military sector, partnerships at Airshow China 2024

Updated 17 sec ago
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Saudi Arabia to boost military sector, partnerships at Airshow China 2024

JEDDAH: Saudi Arabia will participate in the 2024 China Aviation and Aerospace Exhibition in Zhuhai, aiming to foster partnerships and further develop its military sector.

The General Authority for Military Industries, or GAMI, is coordinating the Saudi pavilion’s participation in the global event scheduled for Nov. 12 to 17.

The display area will feature various government entities and national companies specializing in the military industry sector, offering a valuable opportunity to explore the latest advancements in technologies and equipment within the field.

The Kingdom’s defense sector is projected to make a significant contribution to the national economy by 2030, with an expected gross domestic product contribution of $17 billion and a direct addition of $9 billion to non-oil revenues. The division’s growth is set to create 100,000 direct and indirect job opportunities by the end of the decade.

Some 74 investment opportunities are emerging from efforts to develop and localize supply chains, with an estimated value of SR150 billion ($40 billion). The total investment contribution from the defense sector is expected to reach $10 billion by 2030, according to the GAMI website.

Saudi Arabia’s participation in international events marks a crucial step in solidifying the Kingdom’s position as one of the fastest-growing economies among the G20 nations, according to a statement by GAMI.

The initiative also emphasizes the country’s commitment to attracting global investors and advancing the objectives of Saudi Vision 2030 within the military sector.

The Kingdom’s pavilion will showcase a range of military products and equipment, particularly in aviation, underscoring the nation’s efforts to enhance national military manufacturing capabilities. By 2030, Saudi Arabia aims to localize over 50 percent of government spending on military equipment and services.

The pavilion will also highlight the sector’s investment potential and the favorable environment for investments in the nation’s defense and military industries.

Established in 2017, GAMI collaborates with government entities and private sector partners to empower national and international firms within the military industry. This initiative aims to localize and enhance domestic manufacturing capabilities, positioning the sector as a key contributor to Saudi Arabia’s economic prosperity and defense independence.

Several government bodies, including the Ministry of Investment and the General Authority for Defense Development, are participating in the Saudi pavilion at the exhibition, alongside national companies such as the National Co. for Mechanical Systems, WAKEB Co. for Artificial Intelligence and Autonomous Systems, and Milestone Aviation Services, as well as Homat Al-Watan Co, as per the release.

GAMI’s efforts, in partnership with the public and private sectors, support the growth of the national economy by establishing policies and regulations that create a favorable investment environment.

The sector is now more accessible to investors due to its market size, cross-sector impact, competitive advantages, and GAMI’s focus on developing industrial participation programs and policies.


Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

Updated 10 November 2024
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Saudi Arabia’s flyadeal boosts Dammam network with 3 domestic routes

  • The new destinations, Najran, Tabuk, and Yanbu, are strategically significant
  • Expansion marks the first phase of flyadeal’s 2025 growth plan

RIYADH: Saudi Arabia’s low-cost airline, flyadeal, will launch three new domestic routes from Dammam starting in January, aligning with the Kingdom’s Vision 2030 objectives. 

The airline will launch daily flights from Dammam to Najran and four weekly services to Tabuk on Jan. 1, followed by three weekly flights to Yanbu starting Jan. 2.

The announcement was made by Steven Greenway, CEO of flyadeal, on the sidelines of the World Travel Market in London.

Greenway said the new routes are part of flyadeal’s mission to connect smaller towns and cities across the Kingdom, catering to populations under 400,000 that are underserved yet have a growing demand for air travel.

“Having well-established bases in Riyadh and Jeddah, flyadeal is now strengthening its presence in the Eastern Province by increasing frequencies on existing routes and adding three new destinations connected to Dammam,” Greenway said.

He added: “Our new flights will facilitate travel for business and leisure purposes, support the growing desire among Saudis and international visitors to discover the rich diversity that the country offers, and attract a growing expatriate population to explore the Kingdom.”

The expansion complements Vision 2030, which seeks to diversify Saudi Arabia’s economy and transform the Kingdom into a global transportation and logistics hub.

By enhancing access to remote and economically vital cities, flyadeal supports Vision 2030 objectives to strengthen tourism, stimulate business opportunities, and increase domestic mobility.

The new routes will also advance the nation’s strategy to welcome 150 million visitors annually by 2030.

The expansion marks the first phase of flyadeal’s 2025 growth plan, which includes adding more domestic routes and launching international flights from its primary hubs in Riyadh, Jeddah, and Dammam in the coming months.

The developments align with Saudi Arabia’s broad national efforts to establish itself as a key player in the aviation sector, with enhanced infrastructure, expanded air service networks, and a focus on customer experience.

Operating from its three main bases, Riyadh, Jeddah, and Dammam, flyadeal serves nearly 30 year-round and seasonal destinations across the Kingdom and select cities in the Middle East, Europe, and North Africa.

The airline’s fleet comprises 36 modern Airbus A320 narrowbody aircraft, optimized for efficiency and passenger comfort, reinforcing Saudi Arabia’s commitment to advancing sustainable and high-quality air travel.

The new destinations, Najran, Tabuk, and Yanbu, are strategically significant. Najran, an agricultural hub in the southwest, contributes substantially to the local economy.

Tabuk serves as a gateway to the Red Sea coast and plays a pivotal role in the Kingdom’s large-scale tourism and development projects.

Yanbu, Saudi Arabia’s second-largest port in the Madinah province, is a hub for petroleum and petrochemical industries, supporting national economic objectives and Vision 2030’s goals for diversified growth.

With international routes to Amman, Cairo, and Istanbul, flyadeal positions itself as a crucial connector between the Kingdom and key regional and international destinations, advancing Vision 2030’s ambition of creating an integrated, globally connected Saudi Arabia.


National climate commitments: a reality check since Paris

Updated 10 November 2024
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National climate commitments: a reality check since Paris

  • Current pledges fall short of avoiding disaster
  • Financial support must be tangible, says UNFCCC chief

BAKU: As COP29 convenes in Baku, global attention turns once again to the question of climate commitments and progress made since the landmark 2015 Paris Agreement.

The upcoming conference will pose a pressing question: Has the world truly advanced in meeting the emissions targets that science says are essential to avoid catastrophic climate change?

A close examination of the current Nationally Determined Contributions shows both progress and an urgent need for more ambitious action.

Enhancing accountability and transparency

For many nations, the Paris Agreement remains a guiding framework, but as the UN’s first global stocktake at COP28 demonstrated, current commitments and transparency mechanisms are insufficient for real progress.

COP29 aims to improve accountability measures to ensure that pledged funds are disbursed effectively and on schedule. 

Transparency mechanisms such as regular reporting on climate finance allocations and emissions reduction progress are being considered to enhance trust and accountability in international climate cooperation.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, highlighted the importance of tracking mechanisms to ensure that “climate cash counts,” emphasizing that financial support must translate into tangible, measurable results.

Stagnation in reducing global emissions

Since the Paris Agreement’s adoption, NDCs have become the primary framework for countries to articulate their climate ambitions, but recent data shows that the majority fall short of meeting the global temperature goal.

According to the latest report from the UN Climate Change Secretariat, global greenhouse gas emissions remain perilously close to 2019 levels, with minimal reduction progress.

Even with full implementation of all current NDCs, emissions are projected to peak before 2030 but fall short of the reductions needed to keep global warming below the critical threshold of 1.5°C above pre-industrial levels.

This gap illustrates an alarming trend — while commitments have increased in number and specificity, their collective impact remains insufficient to prevent severe climate impacts.

In particular, countries with historically high emissions — including the US, China, and India — have struggled to translate ambitious pledges into sustained reductions.

On the other hand, nations such as those in the EU, New Zealand, and several Pacific Island states have either reduced emissions substantially or put policies in place that could serve as models for more comprehensive global action.

Germany is another example of a country which has pioneered renewable energy legislation to achieve a record 46 percent share of renewable power in its electricity mix in recent years.

Meanwhile, Denmark and Sweden have established national frameworks targeting net-zero emissions by the middle of the century. Yet, many of the world’s largest emitters remain behind their targets, underscoring a divide between ambition and action that is critical for COP29 to address.

Climate-vulnerable regions, including sub-Saharan Africa and island nations, have also made considerable strides in setting strong climate policies despite contributing relatively little to global emissions. However, these nations often face implementation barriers that more affluent countries do not, primarily due to resource limitations.

Financial commitments fall short of needs

Climate finance has emerged as a critical factor in closing the emissions gap, especially for developing countries facing disproportionate impacts from climate change. Climate-related damages have skyrocketed in recent years, with extreme weather events causing billions in economic losses worldwide.

Stiell underscored this point by stressing the need for exponential growth in climate finance to ensure equitable transitions across economies.

“We simply can’t afford a world of clean energy haves and have-nots,” he said, warning that without substantive financing commitments only the wealthiest nations would be able to protect themselves against the intensifying climate crisis.

Yalchin Rafiyev, Azerbaijan’s lead negotiator, reinforced this: “We can see the divides that need to be bridged, but we must have a climate finance target that accounts for the needs of the most vulnerable.”

While the latest OECD data indicates developed countries mobilized $100 billion for climate action in 2022, this figure falls drastically short of the trillions of dollars needed annually.

However, the World Bank and the International Monetary Fund face mounting calls to further expand these initiatives and reduce financing barriers for developing nations.

As COP29 unfolds, global leaders face the challenging task of ensuring that the commitments made are not just promises but foundational steps toward meaningful, global climate action. The stakes have never been higher.


COP29 set to begin with hopes for more funding to fight climate change

Updated 10 November 2024
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COP29 set to begin with hopes for more funding to fight climate change

  • Just, equitable action vital, says COP29’s Mukhtar Babayev

BAKU: The highly anticipated COP29 UN climate change conference opens on Monday in Baku, Azerbaijan, bringing together world leaders, experts, and activists to tackle the urgent environmental challenges facing the planet.

Running through Nov. 22, this year’s event is centered around the theme “In Solidarity for a Green World.”

With over 50,000 participants expected, including top industry leaders and policymakers, COP29 aims to drive global climate action. However, several key leaders — EU President Ursula von der Leyen, US President Joe Biden, and Brazil’s President Luiz Inacio Lula da Silva—will be notably absent, according to Reuters.

COP29 has a special focus on climate finance, as parties aim to set a New Collective Quantified Goal on funding. 

Expectations are high as delegates prepare to discuss topics including carbon emissions reduction, sustainable development, and the integration of climate resilience into national policies. 

Azerbaijan is a significant producer of fossil fuels, just as last year’s host the UAE, but COP29 President-Designate Mukhtar Babayev told Arab News recently that hosting the conference is a sign of change.

“Like Saudi Arabia, Azerbaijan has historically been a significant energy producer, particularly in oil and gas. Hosting COP29 signifies our shift from traditional energy sources to embracing renewable energy solutions,” he said. 

“This event will allow us to showcase our ongoing efforts to diversify our energy mix, investing heavily in wind, solar, and hydrogen energy projects,” he added. 

The conference aims to deliver support for urgent action and foster a sense of shared responsibility between international organizations. 

Babayev highlighted Azerbaijan’s role in coordinating global efforts. “We hope that COP29 in Azerbaijan will serve as a platform for developing nations to voice their unique climate challenges and solutions.

“As a country that has faced environmental and economic transformation, Azerbaijan understands the delicate balance between development needs and climate responsibility,” he said. 

He added: “We can facilitate inclusive dialogues between the Global South and developed nations to ensure that climate action is equitable and just.” 

Commenting on the country’s preparations for the influx of visitors, Babayev said: “In terms of logistics and to ensure Baku is ready to host thousands of delegates from across the globe, we have been investing in the city’s infrastructure, with a strong emphasis on sustainability.” 

Moreover, investments are being made in expanding green public transportation options, enhancing conference facilities, and optimizing urban mobility to minimize environmental impact during the event, he stated.

“Additionally, we are committed to achieving a green COP by integrating renewable energy into the event’s operations and aiming for a zero-waste policy throughout the conference,” said Babayev. 

Some of its established environmental protection initiatives, according to Babayev, include reforesting degraded areas and protecting the Caspian Sea. 

“COP29 will spotlight these initiatives and encourage international collaboration to replicate them.” 

Although the path ahead is challenging, COP29 represents a crucial opportunity to turn ambition into tangible results for generations to come. 

“We are prepared to lead, innovate, and foster the international cooperation needed to tackle the climate crisis and build a more sustainable future for all,” said Babayev.


Egypt’s monthly inflation eases by 1.5% in October

Updated 10 November 2024
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Egypt’s monthly inflation eases by 1.5% in October

  • Easing was primarily driven by a 2.1% decrease in fruit prices and a 0.4% decline in vegetable and hotel services prices
  • Egypt’s inflation rate dropped to 26.3% in October

RIYADH: Lower food prices helped ease Egypt’s inflation rate, which rose by 1.5 percent in October, down from the 2.3 percent increase recorded in September, according to official data.

The Central Agency for Public Mobilization and Statistics said the general consumer price index reached 240 points last month, reflecting the modest decline in inflationary pressures. 

The easing was primarily driven by a 2.1 percent decrease in fruit prices and a 0.4 percent decline in vegetable and hotel services prices, which helped mitigate cost increases in other sectors. 

On an annual basis, Egypt’s inflation rate dropped to 26.3 percent in October, a sharp decline from the 38.5 percent reported in the same month of the previous year, signaling a cooling trend in price pressures. 

This comes as Egypt has been grappling with high inflation in recent years, driven by a mix of global economic pressures, currency devaluation, and rising import costs, which have led to persistent price increases, particularly in essential goods and services, straining household budgets and impacting consumer spending. 

While some categories saw price reductions, others continued to exert upward pressure. Meat and poultry prices surged 3.3 percent, while fish and seafood prices climbed 2.1 percent. 

Dairy products, including cheese and eggs, rose by 2 percent, while sugar, tea, and cocoa recorded a 1.2 percent increase. Bottled water and natural juices increased by 1.1 percent, and cereal and bread prices rose by 0.8 percent. 

Energy costs remained a key factor, with a 7.2 percent increase in electricity, gas, and fuel prices. Housing maintenance expenses rose by 1.5 percent, while rent increased by 0.7 percent. 

Medical services also contributed to the inflationary trend, with outpatient services up 2.4 percent and hospital services increasing by 1.7 percent. 

Food and beverage prices saw an annual increase of 26.9 percent, driven by sharp rises across several key categories. 

Grains and bread prices surged by 36.7 percent, while meat and poultry climbed 19.7 percent. Fish and seafood rose by 21.9 percent, and dairy products, including cheese and eggs, jumped 29.9 percent. Oils and fats increased by 14.9 percent, and fruits were up 28.5 percent. 

The vegetable category saw one of the largest hikes, rising by 39.1 percent. Sugar and sugary foods increased by 15.2 percent, while tea, coffee, and cocoa prices grew by 28.1 percent. Bottled water, soft drinks, and natural juices recorded a rise of 39.2 percent. 

Alcoholic beverages and tobacco prices rose by 35.1 percent annually, with alcoholic drinks up by 16.1 percent and tobacco products increasing by 35.1 percent. 

Clothing and footwear prices increased by 24.4 percent, driven by a 31.9 percent rise in textiles, a 24.9 percent increase in ready-made garments, a 29.9 percent rise in other clothing items, and a 21.1 percent increase in footwear.   

Housing, water, electricity, gas, and fuel costs rose by 20.3 percent. Actual rent prices were up 8.6 percent, housing maintenance costs increased by 16.7 percent, water and miscellaneous housing services rose by 20.5 percent, and electricity, gas, and other fuel prices surged by 44.9 percent.  

The furniture, household equipment, and maintenance sector saw a 24 percent annual increase, driven by a 22.0 percent rise in furniture and carpeting, a 28.2 percent increase in household furnishings, a 28 percent rise in household appliances, a 31.4 percent increase in garden tools and equipment, and a 22.5 percent rise in household maintenance goods and services. 

Healthcare costs jumped 31.3 percent, primarily due to a 40.6 percent increase in medical products and equipment, a 17.8 percent rise in outpatient services, and a 22.1 percent increase in hospital services.  

The transportation sector recorded a 30.2 percent increase, influenced by a 24.5 percent rise in vehicle purchases, a 28.7 percent increase in private transportation expenses, and a 32 percent rise in transportation services.  

Communication services rose by 12.6 percent, with postal services prices soaring by 60 percent, telephone and fax equipment prices increasing by 27.8 percent, and telephone and fax service costs rising by 11.4 percent. 

In a separate development, the Central Bank of Egypt announced that it will issue a one-year treasury bill auction worth $1.5 billion on Oct. 12. 

Acting on behalf of the Egyptian Ministry of Finance, the CBE will manage the reissuance of foreign currency-denominated treasury bills — either in euros or US dollars — to investors from domestic banks, as the maturity date of previously issued bills approaches.