How Saudi Arabia is translating its climate-change ambitions into action

The Green Riyadh project is the largest urban reforestation scheme in the world. (AN archives)
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Updated 13 November 2022
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How Saudi Arabia is translating its climate-change ambitions into action

  • Crown Prince Mohammed bin Salman launched the Saudi Green and Middle East Green Initiatives in 2021
  • Projects include establishing more parks and planting millions of trees to help cool urban environments 

JEDDAH: Flying into the Saudi capital Riyadh, visitors cannot help but notice the patchwork of green spaces that have popped up across the city. Less than a decade ago, the scene from above would have more closely resembled the fictional Star Wars planet of Tatooine.

Although its territory is largely covered by desert, Saudi Arabia has worked hard in recent years to protect and restore its biodiversity, and has opted for a more sustainable future by turning whole swathes of its landscape into havens of green.

Last year, Crown Prince Mohammed bin Salman launched the twin Saudi Green Initiative and the Middle East Green Initiative, which feature the largest afforestation projects in the world, to capture carbon from the air, improve soil quality, and enhance quality of life.

The second edition of the Saudi Green Initiative Forum is taking place in the Egyptian resort town of Sharm El-Sheikh from Nov. 11 to 12 to coincide with the UN climate summit, COP27.

“As a leading global oil producer, we are fully aware of our responsibility in advancing the fight against the climate crisis, and that just as we played a leading role in stabilizing energy markets during the oil and gas era, we will work to lead the coming green era,” the crown prince said during the initiatives’ launch.

A warming climate is already taking its toll on the Kingdom and the wider Middle East, with less rainfall to water crops and refill groundwater aquifers, creeping desertification and soil degradation, and dust storms growing in scale and frequency.

The two initiatives are designed to help the Kingdom and wider region adapt to and mitigate for the effects of climate variation and to adopt technologies and practices that will reduce greenhouse gas emissions and other environmental pollutants.




Circular farms like these are spread across parts of the Kingdom. (AFP file photo)

By the end of 2021, around 60 community-based projects and private sector collaborations had already been launched under the initiatives to help improve public health, boost quality of life, and promote sustainable lifestyles. At the heart of it all is the city of Riyadh.

The growing metropolis is set to more than double its population in the coming decades thanks to an $800-billion project aimed at transforming it into an economic, social and cultural hub for the region. Such a transformation will of course come with environmental challenges. 

In 2019, the Green Riyadh Project, the world’s largest integrated urban reforestation project, announced an intention to plant 7.5 million trees across the capital, to increase green space from 1.7 to 28 square meters per capita, and to increase total green space to 9 percent.

The project aims to reduce ambient temperatures by an average of 8-15 degrees Celsius in afforested locations across the city, to improve air quality by 3-6 percent, and to improve the overall aesthetic of the urban center.

Given Riyadh’s location and high density, it will need time, hard work, and investment to become a sustainable city that fulfills the goals set out in the Kingdom’s Vision 2030 Quality of Life Program, Abdullah Aldakheelallah, an architect and urban researcher, told Arab News.




Community engagement is a key goal of Saudi green efforts. (AN archives)

“Urban areas must not only incorporate green spaces. They must also provide basic amenities, entertainment spaces through eco-friendly practices, afforestation on roads and in neighborhoods, the construction of sidewalks and pedestrian pathways,” said Aldakheelallah.

“Projects in the Kingdom should adapt and adjust themselves to the strategic keys of the Quality of Life Program in their unique way to add to the improvement of urban cities as a whole.

“Green pockets of land will help nourish a city, it can promote outdoor recreational activities, improve the health of citizens and help reduce the urban heat island (UHI) phenomenon, where surfaces absorb heat and retain the heat for longer hours.”

SGI objectives: 

Net-zero emissions by 2060. 

*Boost use of renewables to 50% by 2030.  Contribute to cutting global methane emissions by 30% by 2030. 

Plant 10 billion trees and rehabilitate 40 million hectares of land. 

Raise protected areas to more than 30% of total land. 

Another benefit of the urban afforestation project is that it will curb the effects of “unmanaged surfaces,” such as uninhabited land, roundabouts, and other empty spaces that tend to retain heat longer, said Aldakheelallah.

“Some 20 percent of Riyadh is made up of unmanaged surfaces. By shading such areas, their goal is to decrease the exposure of solar radiation to unmanaged surfaces, and decrease temperatures in the city during daylight. Studies predict that by doing so, you can decrease temperatures by 4-5 degrees during the day,” he added.

Beyond increasing tree cover, Aldakheelallah says the design and retrofitting of buildings can also have a significant impact on local temperatures.

“Roofs play a crucial role in the energy balance of buildings and the surrounding environment,” he said. “The total height-to-floor area ratio and width of the roof are key determining factors for reducing direct radiation exposure.

“Unfortunately, modern ways of building homes have given way to reducing the size and width of roofs, which has had adverse impacts.”

To create and sustain its new green spaces, Riyadh must guarantee plentiful and sustainably sourced freshwater — a limited resource in a country that lacks its own rivers and receives precious little rainfall.

Deep groundwater aquifers and desalination plants are the Kingdom’s primary water resources. In major Saudi cities, desalinated water consumption is extremely high, especially in Riyadh, where its share stood at 63-64 percent in 2020.




Local planting initiatives have been launched around the Kingdom, including in the Eastern Province. (AN archives)

Much of the capital’s drinking water came from desalination plants in Makkah, Jeddah and Taif — a practice which, until more plants are powered by renewable sources of energy, continues to contribute to the Kingdom’s carbon emissions.

Dr. Mark Tester, associate director at the King Abdullah University of Science and Technology Center for Desert Agriculture, says Riyadh needs to better integrate its wastewater management if it wants to irrigate its green spaces sustainably.

“Wastewater is a massive resource, especially in a country which has so little water,” Tester told Arab News. “You need to be able to, for example, separate greywater from blackwater and then use the greywater directly.

“This saves enormous amounts of money and greatly reduces the CO2 emissions from pumping and treating the wastewater. You can use the greywater locally and with minimal treatment and this gives you an opportunity to green the environment.”

Blackwater, also referred to as sewage or brown water, is the wastewater from bathrooms, which can carry disease and bacteria, both of which can be harmful.

Greywater, by contrast, is the wastewater that comes from sinks, washing machines, bathtubs and showers. It contains lower levels of contamination, making it easier to treat and process.

Recycled greywater is commonly used in irrigation and constructed wetlands. In fact, greywater that contains food particles can even nourish plants. Using treated greywater in Riyadh could lead to improved planning, regulations, and building codes, could irrigate tens of millions of trees, and significantly improve health and well-being.

Indeed, at the very heart of the greening strategy is the happiness and well-being of Saudi residents and foreign visitors, allowing them to experience the psychological benefits of the great outdoors in a safe and manageable climate.

“Green spaces should be prioritized where they can be safely and conveniently accessed and enjoyed by everyone, regardless of age, gender, or physical ability, for example, in a neighborhood park as opposed to a street median or traffic roundabout,” Huda Shaka, a sustainable cities adviser, told Arab News.

“Such spaces can improve the physical and mental health of the urban population as well as provide opportunities for improving biodiversity, air quality, and access to food.”

 


Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties

Updated 29 April 2025
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Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties

RIYADH: Saudi Arabia and Azerbaijan have signed a comprehensive agreement focused on strengthening economic collaboration through the development of small and medium-sized enterprises, in a move that underscores both nations’ commitment to enhancing bilateral trade and investment.

The memorandum of understanding was formalized during the 8th session of the Saudi-Azerbaijani Joint Committee, held in Riyadh. It was signed between Saudi Arabia’s Small and Medium Enterprises General Authority, known as Monsha’at, and Azerbaijan’s Small and Medium Business Development Agency, known as KOBIA.

The SME agreement aligns with Saudi Arabia’s Vision 2030 strategy, which prioritizes economic diversification and entrepreneurship. For Azerbaijan, it marks another step in forging strategic partnerships in the Gulf region to bolster private-sector growth and create new market opportunities for innovative enterprises.

In a statement posted on X, Monsha’at said: “In the presence of H.E Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, and the Deputy Prime Minister of the Republic of Azerbaijan, Samir Sharifov, Monsha’at, signed a MoU with ‘KOBİA’ Agency, as part of the 8th session of the Saudi-Azerbaijani Joint Committee activities, to strengthen cooperation in supporting the SMEs and entrepreneurship’s growth between the two countries.”

The agreement encompasses a broad range of initiatives, including knowledge exchange, joint training programs, and support for technical innovation. It also promotes investment opportunities, cross-border partnerships, and institutional collaboration through exhibitions and shared platforms.

 

 

In a separate announcement, the Saudi Ministry of Investment revealed the signing of two additional memorandums of understanding between private-sector companies from both countries.

“These agreements cover the development of maritime infrastructure and the establishment of industrial and medical facilities in the Kingdom, including the production of biotechnology and oncology medicines, the establishment of research and development centers, and infrastructure for re-export warehouses,” the Ministry noted in a post on X.

The joint committee also reviewed a series of potential joint ventures aimed at strengthening cooperation across mutually beneficial sectors. These initiatives are closely aligned with both countries’ long-term goals for economic diversification.

Officials from Saudi Arabia and Azerbaijan emphasized the importance of fostering dynamic SME ecosystems as engines of job creation, innovation, and global competitiveness. By aligning policy frameworks and enabling institutional collaboration, the two nations aim to unlock greater private-sector engagement and regional trade expansion.


Closing Bell: Saudi main index closes in red at 11,746

Updated 29 April 2025
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Closing Bell: Saudi main index closes in red at 11,746

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 38.43 points, or 0.33 percent, to close at 11,746.20.

The total trading turnover of the benchmark index was SR6.87 billion ($1.83 billion), as 86 stocks advanced, while only 157 retreated. 

The MSCI Tadawul Index decreased by 5 points, or 0.33 percent, to close at 1,493.77. 

The Kingdom’s parallel market, Nomu, dipped, losing 89.34 points, or 0.31 percent, to close at 28,331.37. This comes as 35 stocks advanced, while 43 retreated.

The best-performing stock on the main index was Arabian Contracting Services Co., with its share price surging by 9.88 percent to SR131.20.

Other top performers included Al-Baha Investment and Development Co., which saw its share price rise by 4.94 percent to SR4.25, and Sumou Real Estate Co., which saw a 3.93 percent increase to SR 46.25. 

The worst performer of the day was Alistithmar AREIC Diversified REIT Fund, whose share price fell by 3.39 percent to SR9.41. 

Saudi Tadawul Group Holding Co. and Saudi Kayan Petrochemical Co. also saw declines, with their shares dropping by 2.94 percent and 2.83 percent to SR185 and SR5.83, respectively. 

On the announcements front, Alinma Bank announced its interim financial results for the first three months of the year, with net profit amounting to SR1.5 million, a 1.3 percent dip compared to the previous quarter.

The bank’s total comprehensive income saw a 56 percent increase in the first quarter of 2025 to reach SR1.6 million. 

Saudi Ceramic Co. also announced its financial results for the same period, with its net profit dipping by 88.4 percent to SR20.8 million compared to the previous quarter. Similarly, the company’s total comprehensive income saw a decrease of 88.7 percent to SR20.8 million. 

Saudi Ceramic Co.’s share price traded 3.15 percent higher on the main market to reach SR27.85. 

In the first quarter of 2025, Astra Industrial Group’s net profits saw a 30.7 percent quarter-on-quarter increase to reach SR171.8 million. The group attributed the increase to an uptick in gross profit in the pharmaceuticals sector and a decrease in finance costs in the specialty chemical sector. 

The group’s share price traded 0.52 percent lower to reach SR153.


Diriyah Co. awards $1.13bn contract for King Saud University relocation 

Updated 29 April 2025
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Diriyah Co. awards $1.13bn contract for King Saud University relocation 

JEDDAH: Saudi Arabia’s Diriyah Co. has awarded a SR4.22 billion ($1.13 billion) construction contract to relocate King Saud University’s utilities and administration offices, advancing infrastructure development in one of the Kingdom’s flagship urban projects. 

The project was given to a joint venture between China Railway Construction Corp.’s Saudi branch and China Railway Construction Group Central Plain Construction Co., according to a press release. 

Part of the Public Investment Fund’s giga-project portfolio, the Diriyah development is a 14 sq. km mixed-use district poised to house nearly 100,000 residents and provide office space for tens of thousands of professionals across the technology, media, arts, and education sectors. 

Once complete, it is expected to generate 178,000 jobs, attract nearly 50 million annual visitors, and contribute SR70 billion to Saudi Arabia’s gross domestic product. 

Jerry Inzerillo, group CEO of Diriyah Co., said: “We are delighted to announce this major contract to support King Saud University, whose campus adjoins the Diriyah development area.” 

He emphasized that the agreement represents a significant step in furthering efforts to enhance both educational and infrastructural excellence in the Kingdom. 

“We are proud to support one of the Kingdom’s leading academic institutions in delivering enhanced infrastructure services that will benefit both its students and the broader university community,” Inzerillo said. 

The contract includes the design and construction of several critical infrastructure components. These include a district cooling plant, water storage facilities, and a sewage treatment plant, as well as an LPG/SNG plant and a diesel pumping station. 

The scope also covers a utility tunnel, irrigation tanks, office buildings, warehouses, and maintenance workshops. 

Li Chongyang, chairman of China Railway Construction International Group, said the project reflects the firm’s commitment to delivering world-class infrastructure to the highest standards. 

“We look forward to contributing to the success of this iconic project and supporting the continued growth of King Saud University,” he said. 

This latest award brings the total value of contracts issued by Diriyah Co. in 2025 to over $2.9 billion, as the area undergoes rapid transformation into a global destination aligned with Vision 2030.


Qatar attracts $13.8m industrial investments in Q1

Updated 29 April 2025
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Qatar attracts $13.8m industrial investments in Q1

JEDDAH: Qatar recorded 50 million riyals ($13.8 million) in new industrial investments and a 32 percent rise in commercial registrations in the first quarter of 2025, underscoring momentum in its economic diversification and reform agenda.

At its quarterly meeting held on April 28 and chaired by Minister of Commerce and Industry Sheikh Faisal bin Thani Al-Thani, the ministry reviewed key performance indicators and introduced several policy updates aimed at bolstering the business environment.

Among the major reforms highlighted were streamlined company registration procedures for foreign investors and simplified environmental permitting processes.

“The meeting also discussed cooperating with the Ministry of Transport to include logistical activities under a single commercial registration; and announcing the automatic issuance of a tax card upon issuing a commercial registration,” the ministry said in a press release.

In January, Qatar unveiled two major policy frameworks: the Ministry of Commerce and Industry Strategy and the Qatar National Manufacturing Strategy 2024–2030. Under the theme “Achieving Sustainable Economic Growth,” the initiatives are aligned with Qatar National Vision 2030 and aim to enhance private sector participation, expand manufacturing capabilities, and attract foreign direct investment.

The strategies target a 3.4 percent compound annual growth rate in non-oil sectors by 2030 and aim to secure $100 billion in foreign investment, while promoting an innovation-driven economy.

As part of its efforts to support local industry, the ministry launched a new “National Product” webpage to promote fair competition and improve product quality. The verification period also began for factories seeking benefits under the In-Country Value Plus policy.

“The meeting further discussed the key performance indicators for various sectors and administrative units. Results showed that the contribution of the manufacturing sector to real gross domestic product reached 52.4 billion riyals in 2024,” the ministry said.

Qatar also made notable gains in global competitiveness, climbing from 18th in 2022 to 11th in 2024 in the International Institute for Management Development’s business efficiency rankings.

During the first quarter, the ministry conducted 39,558 inspection campaigns and reported significant progress under the Third National Development Strategy.

“The meeting also reviewed the progress of projects under the Third National Development Strategy – concluding that 17 percent of the ministry’s projects were completed and work is ongoing on 23 percent of projects,” the report said.

Efforts to reduce service fees and simplify business registration for overseas investors have contributed to an 87 percent increase in new commercial licenses compared to the same period in 2024. The time required to issue commercial registrations has also decreased significantly.

“Furthermore, the increase of permissible activities for home-based businesses from 10 to 63 activities led to a 54 percent surge in the number of home business licenses,” the ministry noted.

The Single Window platform introduced three new e-services in the first quarter, with 38 additional services scheduled for rollout later this year, supported by strong user satisfaction.

“Local patent applications, trademark registration applications, and copyright registration applications grew by more than 18 percent compared to the first quarter of 2024,” the statement added.

On the industrial front, eight new factories were launched in Q1, and non-hydrocarbon industrial exports reached approximately 29.8 billion riyals. The ministry also began reviewing six potential public-private partnership opportunities.

In consumer affairs, authorities ramped up inspection and awareness campaigns to deter trade violations and reviewed the nation’s strategic stockpile and food and fodder security.

The meeting was attended by Minister of State for Foreign Trade Affairs Ahmed bin Mohammed Al-Sayed, Undersecretary Mohamed bin Hassan Al-Maliki, assistant undersecretaries, and department directors.

It concluded with a review of project milestones and discussions on overcoming implementation challenges while improving operational performance.


Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank 

Updated 29 April 2025
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Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank 

RIYADH: Saudi Arabia’s industrial and logistics market is experiencing growth, with warehouse occupancy rates nearing saturation and rental prices in Riyadh increasing by 16 percent year-on-year, according to Knight Frank. 

The firm’s latest “Saudi Arabia Industrial and Logistics Market Review” highlighted a booming sector driven by e-commerce expansion, strategic government initiatives, and surging foreign investment. 

The Kingdom’s logistics hubs — Riyadh, Jeddah, and the Dammam Metropolitan Area— are operating at near-full capacity. 

Riyadh leads with a 98 percent occupancy rate, while Jeddah and Dammam follow closely at 97 percent each.

This momentum was also reflected in occupancy rates in Abu Dhabi with its industrial and logistics market maintaining near-full capacity, mirroring Dubai’s tight supply.

Key hubs like Khalifa Economic Zones Abu Dhabi and Abu Dhabi Airports Free Zone saw sustained demand, driven by strategic infrastructure projects and growing manufacturing activity, according to a separate report by Knight Frank.

Riyadh’s prime warehouse spaces now command rents exceeding SR250 ($66.6) per sq. meter, while city-wide averages hit SR208.

“Despite a slowdown in demand during the second half of the year, city-wide rental rates increased by 16 percent year-on-year,” the report said. 

Jeddah’s lease rates for Grade B facilities rose to SR238 per sq. meter, with the high-end Asfan district maintaining 100 percent occupancy at SR387 per sq. meter. Dammam Metropolitan Area saw rents jump 14.8 percent to SR202 per sq. meter, fueled by a chronic shortage of quality logistics space.

E-commerce and mega-projects fuel growth 

Rapid urbanization, a tech-savvy consumer base, and giga-projects like the Special Integrated Logistics Zone and Sino-Saudi Logistics Zone are reshaping demand. 

“Demographic shifts including rapid urbanization, increased female workforce participation, and a tech-savvy Gen Z and millennial consumer base are accelerating the growth of the e-commerce sector,” the report stated. 

The 3-million-sq. meter Special Integrated Logistics Zone has attracted global players like SHEIN and Apple, while the 4-million-sq. meter Sino-Saudi zone aims to strengthen trade ties with China. 

Government initiatives and private investment 

The National Industrial Development and Logistics Program is a cornerstone of the Kingdom’s industrial strategy, aiming to increase the transport and logistics sector’s contribution to the gross domestic product to 10 percent by 2030, from 6 percent in 2021.

Public-private partnerships are flourishing, with projects like the Tamer Logistics Park and Agility Logistics Park set to expand supply in key regions. 

“Substantial investments to improve and expand connectivity and trade infrastructure, along with regulatory reforms are helping transform Saudi Arabia into a logistics powerhouse,” the report emphasized.

Sustainability and digital transformation 

The sector is also pivoting toward sustainability and automation. Companies like Maersk and Agility are adopting solar-powered warehouses, while digital tools streamline operations. 

“Sustainability has become a major market driver, with companies integrating renewable energy fields and LEED-certified buildings,” said Adam Wynne, partner at Knight Frank. 

With 36,000 factories projected by 2035 and FDI reforms attracting multinationals, Knight Frank predicts sustained growth. 

“Saudi Arabia is on track to become a regional logistics powerhouse,” Wynne said, citing the Kingdom’s integration of “global expertise, modern infrastructure, and green initiatives.”