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)
Short Url
Updated 13 November 2022
Follow

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 unveils 2nd phase of industrial incentives to attract high-value investment 

Updated 23 June 2025
Follow

Saudi Arabia unveils 2nd phase of industrial incentives to attract high-value investment 

  • Initiative extends beyond traditional financing to include direct grants
  • Kingdom works to position itself as a regional and global industrial hub

RIYADH: Saudi Arabia has launched the second phase of its standardized industrial incentives program, aimed at boosting competitiveness and strengthening the Kingdom’s trade balance, a senior official said. 

Speaking at the Saudi Industry Forum in Dhahran, Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, said the initiative supports the government’s efforts to drive high-value investments in priority sectors. 

This comes as Saudi Arabia works to position itself as a regional and global industrial hub. Since its initial launch, the program has drawn more than 1,000 investors. Of the 118 applications received, 12 have reached the final qualification stage. 

In his remarks, Ibn Salamah said: “It gives me great pleasure to announce the launch of the second batch of standardized incentives under this transformative program.” 

He added: “Investors will be able to invest and apply for these new standardized incentives at the beginning of August.”

Khalil Ibn Salamah, deputy minister of industry and mineral resources for industrial affairs, speaking at the Saudi Industry Forum in Dhahran. X/@sif_2030

The initiative, described as one of the most important in the Kingdom’s industrial history, extends beyond traditional financing to include direct grants. 

These are designed to support factories producing critical goods that are currently imported and not manufactured locally. 

Eligible investors under the program may receive up to SR50 million, or 35 percent of the total investment value — whichever is higher. 

The deputy minister emphasized the growing role of the private sector in shaping and implementing the National Industrial Strategy, which aims to expand domestic production and promote economic diversification. 

“The partnership with the private sector has been a cornerstone in shaping the National Industrial Strategy, and it continues to grow steadily to ensure we meet the goals of our national industrial ambitions. The industrial investor remains an indispensable partner in our development efforts,” he said. 

Saudi Arabia currently oversees 61 industrial cities across the Kingdom. Of these, 37 are supervised by the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, while 18 are private and integrated industrial cities.

Another four are managed by the Royal Commission for Jubail and Yanbu, and several others fall under the Special Economic Zones Authority, including OXAGON in NEOM. 

These zones span more than 2 trillion sq. meters, with over 500 million sq. meters already developed or under development. Infrastructure investments across these sites have exceeded SR31 billion, with an expected return of eight to 12 times for every riyal spent. 

“This program has already had a significant positive impact this year and is expected to continue doing so in the years to come,” Ibn Salamah noted. 

The deputy minister said Saudi Arabia is currently overseeing over 1,900 industrial projects with investments totaling SR380 billion, nearly half of which are based in the Eastern Province. 

He noted that conversion industries are expected to account for between 30 and 40 percent of the National Industrial Strategy’s overall targets, underlining their central role in expanding the Kingdom’s industrial base. 

He further highlighted the role of the “Wafrah” program in boosting local consumption of polypropylene, reporting over 40 percent growth and 27 percent utilization of existing capacities. 

Ibn Salamah stated that they are working with the Ministry of Energy to include 20 new materials in the program by 2025, which will significantly impact downstream industries. 

The National Industrial Strategy is built around four core enablers supported by over 140 initiatives.

These include maximizing the value of natural resources, securing the availability of raw materials, enhancing the Kingdom’s exports, and developing specialized industrial clusters. 

It also seeks to empower small and medium-sized factories by encouraging the adoption of advanced manufacturing technologies.

In parallel, the government aims to increase the industrial sector’s contribution to the gros domestic product while reinforcing the resilience and efficiency of local supply chains. 

Chemicals sector drives growth 

During a panel discussion, Fahad Al-Jubairy, assistant deputy minister for sectoral strategies and regulation at the Ministry of Industry and Mineral Resources, said the chemicals sector represents one of the most vital components of the national economy and is expected to account for more than half of the total economic impact projected by the National Industrial Strategy by 2035. 

“The chemicals sector is a vital and strategic component of the national economy. It is one of the twelve key sectors targeted by the National Industrial Strategy — and indeed, it is considered the most critical due to its projected economic impact,” he said. 

The forum featured several key announcements aimed at accelerating industrial growth and localization. X/@sif_2030

According to Al-Jubairy, Saudi Arabia aims to multiply the output of specialty and downstream chemicals by four to five times, while boosting the production of basic and intermediate chemicals by over 12 million tons annually over the next decade. 

He also emphasized that the chemicals sector is foundational to the development of other industries such as automotive, aviation, construction, and advanced materials — all of which stand to benefit from the availability of locally produced value-added chemical products. 

“The growth of the chemicals sector will position the Kingdom where it truly belongs among the world’s leading economies — particularly within the G20 — by reinforcing its global leadership across various products and industries, especially petrochemicals,” Al-Jubairy said. 

He further noted that the sector’s growth will contribute significantly to job creation, increase industrial competitiveness, and open new investment opportunities for entrepreneurs, particularly in small and medium-sized enterprises. 

New industrial projects 

The forum featured several key announcements aimed at accelerating industrial growth and localization. 

Two industrial complexes were inaugurated in the Eastern Province. The first, in Dammam Third Industrial City, will enhance service availability and integration with neighboring industrial zones and export outlets. The second, in Jubail Second Industrial City, targets high-value investments in the chemicals sector and strengthens links with upstream and intermediate feedstock sources. 

Both fall under the Specialized Industrial Complexes Initiative, which supports economic diversification, local content, and job creation by attracting advanced manufacturing investments. 

A strategic partnership was also announced to establish Saudi Arabia’s first tinplate manufacturing plant, in collaboration between the National Industrial Co. and China’s Shanghai Donghexin Group. 

Additionally, MODON signed major industrial agreements, including a SR40 million contract with Abdullah Al-Shuwayer Sons Heavy Metal Industries, a SR35 million lease with Al-Sharq Polystyrene Factory, and a SR20 billion investment deal with Al Marje Al Hayawi Co. Ltd. 


Saudi crude output inches up to 9m bpd: JODI

Updated 23 June 2025
Follow

Saudi crude output inches up to 9m bpd: JODI

  • Direct domestic use of crude for power and industry slipped to 377,000 bpd, a decline of 1.6%
  • Crude intake fell 17.22% to 1.84 million bpd

RIYADH: Saudi Arabia pumped 9 million barrels per day of crude in April, a 0.54 percent month-on-month increase, according to the latest data from the Joint Organizations Data Initiative.

Crude exports rose to 6.17 million bpd, up 7.16 percent from March, the data showed.

Direct domestic use of crude for power and industry slipped to 377,000 bpd, a decline of 1.6 percent versus the previous month and 6 percent below the April 2024 tally.

Demand from local refineries also eased. Crude intake fell 17.22 percent to 1.84 million bpd.

JODI, a platform overseen by the International Energy Forum, compiles monthly oil statistics supplied voluntarily by national governments. The Kingdom’s figures are published with a roughly two-month lag, providing one of the few publicly available windows into Saudi production, exports, and domestic consumption patterns.

For much of the period between 2020 and 2024, the wider OPEC+ alliance had been restraining supplies to shore up prices, beginning with the record 9.7 million-bpd collective cut agreed in April 2020 at the height of the pandemic and tapering only gradually through April 2022.

Additional curbs followed, with the group instituting a 2 million bpd reduction in October 2022 and layered on a series of voluntary cuts totaling 1.6 to 2.2 million bpd from May 2023, moves that remained in force into early 2025.

In a shift of strategy, OPEC+ members agreed in early May to bring back barrels in stages, scheduling incremental increases for May, June, and July and signaling room for a further 2.2 million bpd to return by November if market conditions allow.

A separate market context came from the June Monthly Oil Market Report issued by OPEC on June 16, in which the producer group said the global economy “has outperformed expectations” in the first half of 2025 and should remain resilient in the second half.

OPEC kept its forecasts for oil demand growth in 2025 and 2026 unchanged but trimmed its projection for non-OPEC+ supply growth in 2026 to 730,000 bpd, 70,000 bpd lower than the previous month, citing plateauing US shale output.

Geopolitical risk also featured prominently in late-June trading. Iran’s parliament approved a bill to shut the Strait of Hormuz, the 33-km wide passageway that carries close to one-fifth of the world’s crude exports.

Tanker-tracking data compiled by Reuters shows supertankers making U-turns, idling near the Gulf, or zigzagging to avoid the choke point as companies rush to limit their exposure. In response, freight rates for the largest vessels more than doubled, and Brent crude hit a five-month high.

A full closure — still subject to sign-off by Iran’s higher supervisory bodies — would force Gulf exporters to divert cargoes around Africa or rely on overland pipelines, moves that analysts say could squeeze near-term supply and push oil prices sharply higher. The Strait routinely handles about 20 percent of globally traded oil, underlining why even the threat of disruption can jolt energy markets.


Closing Bell: TASI rises 1.3% as market breadth remains positive 

Updated 23 June 2025
Follow

Closing Bell: TASI rises 1.3% as market breadth remains positive 

  • MSCI Tadawul 30 Index climbed 1.16% to close at 1,377.63
  • Parallel market Nomu ended 0.80% higher at 26,358.07

RIYADH: Saudi Arabia’s Tadawul All Share Index rose 1.29 percent to close at 10,710.24 on Monday, supported by broad-based gains across sectors. 

Trading activity remained healthy, with turnover hitting SR4 billion ($1 billion) and the market recording 225 advancers versus 20 decliners.

The MSCI Tadawul 30 Index also climbed 1.16 percent to close at 1,377.63. The parallel market Nomu ended 0.80 percent higher at 26,358.07.

Red Sea International Co. led the main market gainers with a 9.97 percent jump to SR38.60. Al-Rajhi Co. for Cooperative Insurance followed with an 8.86 percent gain to close at SR113. 

Other top performers included National Gypsum Co., which rose 7.61 percent to SR19.52; Americana Restaurants International, up 6.86 percent at SR2.18; and Naseej International Trading Co., which added 6.53 percent to reach SR78.30. 

On the downside, Sustained Infrastructure Holding Co. was the biggest decliner, falling 3.07 percent to SR25.30. 

Alistithmar AREIC Diversified REIT Fund dropped 1.58 percent to SR8.12, while Eastern Province Cement Co. slipped 1.17 percent to SR29.50. 

Other notable fallers included Knowledge Economic City, down 0.92 percent at SR12.86, and Saudi Industrial Investment Group, which closed 0.71 percent lower at SR16.70. 

On the announcement front, Etihad Atheeb Telecommunications Co., known as GO Telecom, confirmed the completion of its acquisition of a 51 percent stake in Ejad Tech for Information Technology.

The deal, valued at SR86.7 million, was finalized using internal company resources. The group stated that SR40 million was paid upon signing, with the remaining SR46.7 million to be disbursed in two instalments contingent upon target achievements — SR23.7 million by the end of 2025 and SR23 million by the end of 2026. 

GO Telecom said the acquisition is part of a strategic initiative to broaden its business base and enter new sectors. Ejad Tech is recognized as one of the top five digital transformation service providers in the Middle East. 

GO Telecom shares closed up 0.98 percent at SR93.10. 


Digital transformation to boost Saudi industrial productivity by up to 25%, says Aramco CEO 

Updated 23 June 2025
Follow

Digital transformation to boost Saudi industrial productivity by up to 25%, says Aramco CEO 

  • Amin Nasser said effective integration of digital technologies could increase Kingdom’s industrial productivity by 15%
  • He was speaking during the Saudi Industry Forum in Dhahran

RIYADH: Integrating digital technologies is set to increase Saudi Arabia’s industrial productivity by 15 to 25 percent, according to Aramco President and CEO Amin Nasser. 

Speaking during the Saudi Industry Forum in Dhahran, Nasser stated that the Kingdom’s shift into a new industrial era calls for an increased focus on digital transformation and the need to align it with proactive cybersecurity strategies. 

This comes as Saudi Arabia works to solidify its position as a regional and global digital powerhouse, backed by major advances in artificial intelligence, data centers, e-government, and human capital development.  

The Kingdom has emerged as the Middle East and North Africa’s largest digital economy, with a market value exceeding SR495 billion ($131.9 billion) in 2024 — equivalent to 15 percent of its gross domestic product, according to figures from the Ministry of Communications and Information Technology.  

In his remarks, Nasser said: “Preliminary estimates suggest that effective integration of digital technologies could increase Saudi Arabia’s industrial productivity by 15 percent to 25 percent.”  

The Saudi Industry Forum 2025 is sponsored by Eastern Province Governor Prince Saud bin Naif bin Abdulaziz. X/@sif_2030

He added: “Thanks to successive technological developments, industries will emerge over the next 10 years dominated by advanced technologies to a degree we have never seen before.” 

Nasser noted that the world is undergoing profound geopolitical shifts and intensifying competition across technological, industrial, and economic domains — trends that are accelerating the transformation of Saudi Arabia’s industrial landscape. 

He emphasized the need to prepare for this future, particularly as the Kingdom continues to invest in artificial intelligence, the Internet of Things, robotics, and automation. 

These technologies, he explained, are aimed at more than just optimizing factory operations; they are vital for enhancing industrial productivity and ensuring operational reliability. 

“At Aramco, we are working to establish a digital infrastructure that becomes an integral part of empowering the industrial sector,” Nasser said, adding: “This includes the launch of Aramco Digital Company, as well as a 450 MHz private wireless network dedicated to industrial use by the private sector.” 

He continued: “Aramco Digital has also introduced an edge artificial intelligence service — AI on the Edge — designed for critical industrial facilities and complex applications, such as crowd management during Hajj.” 

In the cybersecurity sphere, Aramco established Cyberani in 2021, a company focused on delivering industrial-grade solutions and software protection technologies. 

“Aramco is working on projects to develop artificial intelligence platforms, data centers, and smart industrial complexes,” Nasser said. 

He warned of the risks accompanying digital advancement, stating: “A technical malfunction or external interference through digital systems or control platforms could impact operations and disrupt the performance of industrial and economic facilities — especially those that do not invest sufficiently in digital protection.” 

Highlighting the human element in digital security, he stated: “The most critical aspect of proactive protection systems is the development of human capabilities and deep expertise.” 

Nasser concluded by stressing the importance of localizing digital supply chains and enhancing technological resilience. 

“Building future Saudi industries supported by flexible supply chains, competitive costs, and excellence in artificial intelligence is essential and highly important — but it is not enough unless it is accompanied by proactive investment in digital protection,” he said. 

The Saudi Industry Forum 2025, held from June 23–25 at the Dhahran International Exhibition Center, is sponsored by Eastern Province Governor Prince Saud bin Naif bin Abdulaziz. 

The event aims to elevate the Kingdom’s industrial sector in alignment with Saudi Vision 2030, which seeks to diversify income sources and increase the sector’s contribution to the gross domestic product. 


Egypt records 77% rise in remittances over 10 months

Updated 23 June 2025
Follow

Egypt records 77% rise in remittances over 10 months

  • Between January and April, remittance inflows rose 72.3% year on year to $12.4 billion
  • Annual urban headline inflation rate accelerated to 16.8% in May, up from 13.9% in April

RIYADH: Remittances from Egyptians working abroad rose by more than 77 percent in the first 10 months of the 2024-25 fiscal year, reaching a record $29.4 billion.

Between January and April alone, remittance inflows rose 72.3 percent year on year to $12.4 billion, official data from Egypt’s central bank showed.

The sharp increase underscores growing confidence among expatriates in the country’s financial system and reflects a broader improvement in Egypt’s external financial position.

The Central Bank of Egypt attributed the surge to recent measures aimed at stabilizing the exchange rate and encouraging the use of formal remittance channels.

The impact of these policies is also evident in the rise of Egypt’s net international reserves, which climbed to $48.5 billion at the end of May, up from $47.8 billion in March.

In a statement, the central bank noted: “On a monthly basis, remittances in April 2025 increased by 39 percent year on year, reaching approximately $3 billion, compared to $2.2 billion in the same month last year.”

The Central Bank of Egypt attributed the surge to recent measures aimed at stabilizing the exchange. File/Reuters

The rebound in remittance flows comes amid broader economic reforms pursued under an International Monetary Fund-backed stabilization program. These reforms have bolstered Egypt’s foreign currency position and helped attract more international capital.

In May, Prime Minister Mostafa Madbouly announced that Egypt recorded real gross domestic product growth of 3.9 percent during the first half of the fiscal year. Private sector investment surged by 80 percent, while foreign direct investment rose by around 17 percent.

Inflation, however, remains a key challenge. The annual urban headline inflation rate accelerated to 16.8 percent in May, up from 13.9 percent in April, driven largely by continued pressure on non-food prices.

These inflation trends come as Egypt’s broader economic landscape continues to be shaped by both domestic and global pressures. The government is navigating a delicate recovery amid external shocks, ongoing structural reforms, and efforts to manage public debt.  

In February, Moody’s affirmed Egypt’s “Caa1” long-term foreign and local currency ratings with a positive outlook, citing improved debt servicing capacity, higher reserves, and falling borrowing costs.  

The ratings agency noted that recent currency devaluation and flotation helped boost foreign exchange reserves and reduce debt vulnerabilities. While a “Caa1” rating denotes high credit risk, the positive outlook reflects the government’s efforts to control inflation and stabilize interest rates.