Saudi Arabia and Thailand sign landmark agreements on energy

The Saudi crown prince’s visit to Thailand is a historic moment in Riyadh-Bangkok ties. (SPA)
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Updated 20 November 2022
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Saudi Arabia and Thailand sign landmark agreements on energy

  • Saudi Arabia’s crown prince is special guest at Asia-Pacific summit in Bangkok
  • Diplomatic ties between the two kingdoms were restored after three decades
  • Thais say they hope for more exchanges, cultural interaction with Saudi Arabia

BANGKOK: Crown Prince Mohammed bin Salman’s visit to Bangkok this week has had more of an impact than just forging a bond between the two kingdoms — it touched the sentiments of Thais, spurring hopes of a fruitful and lasting relationship.  

The crown prince’s arrival in Thailand marked the first visit by a Saudi royal to the country after three decades of frozen diplomatic and economic ties.

Ties between Saudi Arabia and Thailand were restored earlier this year when Thai Prime Minister Prayuth Chan-ocha visited Riyadh in January and the two countries agreed to work on bilateral cooperation in a “historic breakthrough.”

Thailand invited the crown prince to be a special guest at the Asia-Pacific Economic Cooperation summit on Nov. 18-19.

HIGHLIGHT

Thailand invited Crown Prince Mohammed bin Salman to be a special guest at the Asia-Pacific Economic Cooperation summit on Nov. 18-19.

While his meetings with Thailand’s leadership have yielded numerous memorandums on energy, tourism and normalizing diplomatic relations, Thais who spoke to Arab News said it was also important to them on a personal level.

“The leader of Saudi Arabia, the crown prince and prime minister, is very widely well respected by our people,” said Tanee Sangrat, director-general of information at the Thai Ministry of Foreign Affairs, and soon to be Thailand’s ambassador to the US.

The visit has been “closely watched and followed by the Thai people in Thailand and around the world,” he told Arab News.

With the restoration of ties with Saudi Arabia, Thailand has found not only a new powerful partner in navigating volatile energy markets and energy transition, but also, as many have said, a “gateway” to the Middle East.

Business development professional Suppalerk Aramkitphotha saw the crown prince’s visit as a “great opportunity.”

“We are very glad that we have this opportunity,” he said. “Business and everything, that can come to Thailand, or any business from Thailand can go to the Middle East.”

Jirayut Srupsrisopa, a fintech professional, was glad that the crown prince was visiting Thailand and “bridging” the relationship.

“Now we can do so much more between Thailand and Saudi,” he said. “We can work with Saudis for the future of energy, the future of green hydrogen or a future growth in other aspects like the digital economy.”

But there is much more to the renewed ties than the immense business opportunities for both nations.

Voralak Tulaphorn, a marketing professional, said that a Saudi presence is something that has been missing from the diverse multicultural landscape of Thailand.

“Saudi Arabia and Thais actually have a lot of rich cultures, and with rich cultures it would be nice to have an exchange … I think from food to nature, fashion, to many handicrafts and all.”

But the biggest potential for her was in bringing Thais and Saudis together by exchanging cuisines, and if the way to another’s heart is through their stomach, Thai cuisine is definitely one that can offer a hearty fare.

“People love Thai street food,” she said, adding that she hoped that Thais will try Saudi food soon.

“In the last 30 years, we have not seen many Saudi restaurants in Bangkok. We would love to taste Saudi Arabian food, too.”


Sovereign fund ADIA invests $500m in US power firm AlphaGen

Updated 48 sec ago
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Sovereign fund ADIA invests $500m in US power firm AlphaGen

LONDON: The Abu Dhabi Investment Authority is investing $500 million in Alpha Generation, a US power infrastructure company owned by private equity, the companies told Reuters on Monday, as the race to invest in power generation assets intensifies.

Formed a year ago by ArcLight Capital Partners to manage and operate the buyout firm’s power infrastructure investments, AlphaGen constitutes one of the largest portfolios of independent power assets in the US, with more than 11 gigawatts of generation capacity spread across six states.

“This investment, and the partnership between ourselves and ADIA, will help catalyze both the future growth of, and the value of, this strategic portfolio of assets,” Angelo Acconcia, partner at ArcLight, told Reuters in an interview.

ADIA’s $500 million is for a minority stake in AlphaGen, according to a joint statement from the parties. Acconcia declined to comment on the size of the minority stake or the valuation at which the ADIA investment valued AlphaGen.

The move by the sovereign wealth fund comes amid a frenzy of deals activity in the US power industry, as the boom in artificial intelligence and data centers, as well as electrification efforts in manufacturing and transportation, is driving power demand to record levels, with further growth projected through the rest of the decade and beyond.

This is making investments into the US power sector, whether for generation assets, transmission infrastructure, energy storage or associated companies, increasingly attractive both for money managers and existing industry players.

On Friday, in the largest US power acquisition in nearly two decades, Constellation Energy agreed a $16.4 billion deal to purchase Calpine from the investors which owned the independent power producer.

Unlike utilities, independent producers — such as the plants operated by AlphaGen — can sell power at market prices, allowing them to profit more when demand rises.

ArcLight, an energy-focused private equity firm founded in 2001, has owned, controlled, or operated more than 65 GW of generation assets and 47,000 miles of transmission infrastructure, according to the statement.

The ADIA investment into AlphaGen is subject to regulatory approvals and is expected to close in the first half of 2025, the statement added.


Oil Updates — prices remain near 4-month highs as Russia sanctions weighed

Updated 14 January 2025
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Oil Updates — prices remain near 4-month highs as Russia sanctions weighed

LONDON: Oil prices eased on Tuesday but remained near four-month highs as the impact of fresh US sanctions on Russian oil remained the market’s key focus.

Brent futures slipped 28 cents, or 0.4 percent, to $80.73 a barrel by 7:00 a.m. Saudi time, while US West Texas Intermediate crude fell 18 cents, or 0.2 percent to $78.64 a barrel.

Prices jumped 2 percent on Monday after the US Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that trade oil as part of Russia’s so-called “shadow fleet” of tankers.

“Headlines surrounding Russia oil sanctions have been the dominant driver for oil prices over the past week, and combined with resilient US economic data, the tighter supply-demand dynamics have been seeing some momentum,” said IG market strategist Yeap Jun Rong.

“Prices are taking a slight breather today. With prices rising fast and furious by close to 10 percent since the start of the year, it does prompt some profit-taking as event risks around upcoming US inflation data releases loom.”

The US producer price index will be released later in the day, with consumer price index data on Wednesday.

The stakes are high for Wednesday’s figures, where any rise in core inflation greater than the forecast 0.2 percent would threaten to close the door on further Federal Reserve interest rate cuts this year.

Lower interest rates typically help in stimulating economic growth, which could prop up oil demand.

“The recent rally to a three-month high does signal an improvement in sentiment, but while broad bearish pressures have eased for the time being, a stronger catalyst is still needed to fuel a sustained broader uptrend,” IG’s Yeap added.

While analysts were still expecting a significant price impact on Russian oil supplies from the fresh sanctions, the actual physical impact could be less.

“These sanctions have the potential to take as much as 700k b/d of supply off the market, which would erase the surplus that we are expecting for this year. However, the actual reduction in flows will likely be less, as Russia and buyers find ways around these sanctions – clearly there will be more strain on non-sanctioned vessels within the shadow fleet,” ING analysts said in a note.

Meanwhile, demand uncertainty from major buyer China could blunt the impact of the tighter supply. China’s crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed on Monday.

“New sanctions on Russian tankers are expected to impact crude supply to China and India, though key players in these countries are still assessing the legal situation and possible workarounds,” said Sparta Commodities’ Philip Jones-Lux. 


66% of organizations expect AI to have major cybersecurity impact in 2025: WEF

Updated 14 January 2025
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66% of organizations expect AI to have major cybersecurity impact in 2025: WEF

  • Only 37% have processes to determine the security of AI tools before implementation

DUBAI: The cybersecurity ecosystem has grown more complex with implications for both organizations and governments, according to the World Economic Forum’s latest “Global Cybersecurity Outlook” report released on Monday.

Sixty-six percent of organizations expect artificial intelligence to have a major impact on cybersecurity in 2025. But only 37 percent of organizations have processes in place to assess the security of AI tools before deployment, the report found.

Akshay Joshi, head of the WEF’s Centre for Cybersecurity, told Arab News: “Geopolitical uncertainties, advances in emerging technologies and supply chain vulnerabilities are among the key factors contributing to complexity in cyberspace, all of which point to the need for building cyber resilience across organizations and nations.”

The report calls for a shift in perspective from cybersecurity to cyber resilience, which it describes as an organization’s ability to mitigate the impact of significant cyber incidents on its goals and objectives.

Supply-chain challenges are the greatest barrier to achieving cyber resilience due to their increasing complexity, along with lack of visibility and oversight into the security levels of suppliers, according to the report.

Over half (54 percent) of large organizations consider supply-chain challenges as the greatest barrier to achieving cyber resilience.

Another significant factor is geopolitical tensions, which affect the cybersecurity strategy of nearly 60 percent of organizations surveyed in the report.

Geopolitics also affect risk perception with 45 percent of cyber leaders saying they are concerned about disruption of operations and business processes. And approximately 33 percent of CEOs say cyber espionage, loss of sensitive information and intellectual property theft are their top concerns.

There is widespread disparity regionally and economically when it comes to cyber resilience. For example, 35 percent of small organizations believe their cyber resilience is inadequate — a proportion that has increased sevenfold since 2022.

On the other hand, the share of large organizations reporting insufficient cyber resilience has nearly halved since 2022 down from 13 percent to 7 percent.

Regionally, only 15 percent of respondents in Europe and North America lack confidence in their country’s ability to respond to major cyber incidents targeting critical infrastructure. But this number rises to 36 percent in Africa and 42 percent in Latin America.

The Middle East region is more optimistic with respondents saying they are “confident” (36 percent) and “very confident” (36 percent).

“This confidence is a result of the unequivocal focus on cybersecurity in the Kingdom and across the wider region coupled with the importance given to global collaborative efforts,” Joshi explained.

In addition to these insights, the report highlighted the economic implications of cybersecurity and the role of leadership in prioritizing it as a core business enabler.

It also stressed the need for collaborative efforts to secure networks essential to the digital economy and for ways to effectively address the increasing shortage of cybersecurity skills.


Saudi Arabia’s Surj Sports Investment partners with Enfield Investment to boost global portfolio

Updated 14 January 2025
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Saudi Arabia’s Surj Sports Investment partners with Enfield Investment to boost global portfolio

  • Surj, established in 2023, is dedicated to fostering growth in the global sports sector and building a robust sporting ecosystem in Saudi Arabia and the wider Middle East

WASHINGTON: Saudi Arabia’s Surj Sports Investment Co. signed a strategic partnership agreement on Monday with US-based Enfield Investment Partners to expand and enhance investments in the global sports sector.

The partnership follows EIP’s recent launch of a $4 billion global fund aimed at investing in sports assets.

The two companies plan to explore opportunities in key areas, including clubs, leagues, media rights, and sports infrastructure, a statement issued on Monday said.

Surj, established in 2023, is dedicated to fostering growth in the global sports sector and building a robust sporting ecosystem in Saudi Arabia and the wider Middle East.

The company’s strategy focuses on direct investments in sports events and activities to enhance fan engagement and regional sports participation.

“We are delighted to partner with EIP, which has demonstrated a bold vision with the launch of its new sports assets fund,” said Surj CEO Danny Townsend.

“This collaboration marks a significant milestone in Surj’s journey to expand its presence in the American market and foster transformative investments in the global sports sector,” he added.

Jake Silverstein, co-founder and chairman of EIP, echoed Townsend’s sentiments.

“The launch of our Global Sports Assets Fund marks the beginning of an exciting chapter. Partnering with Surj Sports Investment enables us to align our shared vision for advancing the future of the sports industry,” he said.

As part of the collaboration, EIP plans to establish a regional headquarters in Riyadh to complement its Washington base, reflecting the partnership’s commitment to fostering growth in Saudi Arabia and beyond.

“The Kingdom’s extraordinary transformation is reshaping the global sports landscape,” Silverstein added. “Through this partnership, we aim to create meaningful and lasting impact, leveraging the resources and expertise of both parties to drive innovation and growth.”

The agreement highlights Saudi Arabia’s growing influence in the global sports arena, which has culminated in the Kingdom’s successful bid to host the 2034 FIFA World Cup.


Saudi Aramco secures $9bn in deals on first day of iktva forum

Updated 13 January 2025
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Saudi Aramco secures $9bn in deals on first day of iktva forum

  • 145 agreements signed in one day mark a leap toward strengthening local industries

RIYADH: Saudi Aramco has secured 145 agreements and memorandums of understanding worth an estimated $9 billion on the opening day of the In-Kingdom Total Value Add Forum and Exhibition 2025. 

These deals are expected to drive the localization of products and services in Saudi Arabia, enhancing local content in the supply chain and fostering collaboration.

The agreements align with the core objectives of iktva, which aim to enhance supply chain efficiency and add value across Saudi Aramco’s operations.

By increasing local content, the program helps develop a more diverse and competitive energy industry in the Kingdom. It also supports the strategic goal of retaining 70 percent of procurement spending within Saudi Arabia, directly benefiting local businesses.

On its first day, the event highlighted 210 localization opportunities across 12 sectors, with a combined annual market value of $28 billion. These opportunities are seen as key to driving long-term industrial growth and reducing reliance on imports.

During the event, Saudi Aramco President and CEO Amin Nasser reflected on the company’s progress, noting that Aramco achieved a 67 percent local content score for its procurement of goods and services in 2024, up from just 35 percent in 2015. 

“Since launching iktva in 2015, we’ve made significant strides. Back then, most of our materials and services were sourced from outside Saudi Arabia,” Nasser said. 

Nasser emphasized that the success of iktva depends on its ability to create value for all stakeholders. 

“For Aramco, a largely localized supply chain ensures continuity and helps us navigate operational challenges more effectively,” he said. “Since 2015, iktva has contributed over $240 billion to Saudi Arabia’s GDP and led to the creation of 350 local manufacturing facilities with investments totaling more than $9 billion.”

These new facilities cover a range of sectors, including chemicals, non-metallics, information technology, electrical and instrumentation, and drilling. As a result, 47 products are now being manufactured for the first time in Saudi Arabia.

Saudi Energy Minister Prince Abdulaziz bin Salman also addressed the gathering, announcing the Kingdom’s plans to enrich and sell uranium. “We’re committed to monetizing all our mineral resources, including uranium,” the minister said. “By enriching and selling uranium, along with producing yellowcake, we will secure essential raw materials for energy security.”

Prince Abdulaziz discussed the future of the petrochemical sector, emphasizing the importance of producing more advanced chemicals. “The future of petrochemicals is not just about plastics or polymers. We’re aiming for better, more sophisticated chemical products,” he noted.

Saudi Energy Minister Prince Abdulaziz bin Salman. SPA

Looking ahead, the energy minister spoke about potential collaborations with Egypt, indicating that a roadmap for joint ventures would be outlined in February. “We have much to look forward to with Egypt,” he said.

In a separate panel, Prince Abdulaziz highlighted the role of integrated collaboration between sectors in achieving the Kingdom’s Vision 2030.

He explained that major energy expansion projects are key to supporting industrial development by providing diverse energy sources and offering competitive prices for gas feedstock.

This, he added, would help stimulate the growth of manufacturing and facilitate the transition to cleaner energy.

Saudi Investment Minister Khalid Al-Falih also spoke during the ministerial dialogue session, stressing that standardized incentives for the industrial sector are critical to achieving Vision 2030.

These incentives, he said, will help accelerate the creation of new industrial facilities and strengthen local supply chains at all stages of the value chain, making Saudi industries more competitive.

The first day of the forum also saw the launch of ASMO, a joint venture between Saudi Aramco Development Co. and DHL. The new venture aims to transform the procurement and supply chain landscape across the Middle East and North Africa region.

Additionally, the opening ceremonies for the Novel Non-Metallic Solutions facility at King Salman Energy Park and the NMDC Offshore Fabrication Yard at Ras Al-Khair were held.

Novel, a partnership between Aramco and Baker Hughes, is focused on introducing a range of composite products to the market, while the NMDC fabrication yard will provide maritime engineering services and fabricate equipment and materials.

Running from Jan.13-16 in Dammam, the iktva Forum continues to spotlight critical infrastructure projects and collaborative opportunities aimed at advancing the local supply chain ecosystem and supporting the Kingdom’s long-term industrial goals.