UAE’s Masdar to issue green finance framework within weeks: CEO
Updated 19 January 2023
Reuters
ABU DHABI: UAE renewable energy company Masdar will publish its first green finance framework within weeks, enabling it to issue its first green bonds, its chief executive said on Thursday.
"Masdar will be ready to issue its first-ever green bond in 2023, and we intend to move forward subject to market conditions," CEO Mohamed Jameel Al Ramahi said, speaking at the Abu Dhabi Sustainable Finance Forum.
Last month, TAQA, Abu Dhabi sovereign wealth fund Mubadala Investment Co. and Abu Dhabi National Oil Co. said they would become shareholders in Masdar, with stakes of 43 percent, 33 percent and 24 percent, respectively.
Fitch and Moody's reaffirmed their A+ and A2 credit ratings assigned in 2021 following the change to the company's shareholding structure, Al Ramahi said.
Issuers in the hydrocarbon-rich Gulf have increasingly looked to burnish their environmental credentials by issuing green bonds or other sustainability-linked debt.
Saudi Arabia's sovereign wealth fund raised $3 billion in green bonds in October in its maiden debt issue.
The UAE will host this year's COP28 climate summit and last week named the head of oil giant ADNOC, Sultan al-Jaber, to lead it. He also chairs Masdar and was its founding CEO.
Saudi Arabian oil made up 44.3 percent of Japan’s imports in November
Updated 11 sec ago
Arab News
TOKYO: Japan imported 31.49 million barrels of Saudi oil in November 2024, making up 44.3 percent of the total, as reported by the Japanese Ministry of Economy, Trade, and Industry’s Agency of Natural Resources and Energy.
Japan imported 71.18 million barrels of oil in November, of which 67.72 million barrels (95.1 percent) came from Arab countries.
Supplies from Arab countries play a vital role in Japan’s energy security. The main suppliers were Saudi Arabia, the UAE, Kuwait, Qatar, and the Neutral Zone (between Saudi Arabia and Kuwait).
The UAE shipped 27.16 million barrels to Japan, which represented 38.2 percent of the total imports, Kuwait contributed 5.19 million barrels (7.3 percent), and Qatar was responsible for 3.42 million barrels (4.8 percent). The Neutral Zone provided 0.6 percent of Japan’s imports.
Politics and resulting sanctions play a large part in determining the source of Japan’s oil imports. With a ban on imports from Iran and Russia, the rest of Japan’s oil imports in November came from Central and South America (1.8 percent), the United States (1.7 percent), Oceania (0.9 percent) and Southeast Asia (0.4 percent).
Omani-Saudi partnership forum explores prospects in health, education, technology, consultation
Trade between the two nations surpassed $2.59 billion in the first half of 2024
Saudi investments in Oman have increased by over 50% since 2021
Updated 11 min 8 sec ago
REEM WALID
RIYADH: Saudi Arabia and Oman are exploring new opportunities for cooperation and investment across various sectors, including health, education, technology, and consulting following a recent meeting,
Organized by the Oman Chamber of Commerce and Industry, the Omani-Saudi partnership forum considered ways to boost collaboration through the involvement of private sectors in both countries, mainly focusing on ongoing projects, the Oman News Agency reported.
This falls in line with the steady and robust economic ties between the two sides. According to data from Oman’s National Center for Statistics and Information, trade between the two nations surpassed 1 billion Omani riyals ($2.59 billion) during the first half of 2024.
This also aligns with the Kingdom’s Vision 2030 and Oman’s Vision 2040. Additionally, Saudi investments in Oman have increased by over 50 percent since 2021, significantly strengthening bilateral economic relations.
During the meeting, the OCCI showcased a presentation titled “Explore the Omani Market,” highlighting economic indicators and the appealing features that set Oman aside, including the nation’s strategic location, special economic and free zones, and incentives offered to investors.
The presentation highlighted target sectors in Oman Vision 2040 and related OCCI services.
The forum introduced firms that aspire to spearhead investment in consultation, education, information technology, and health. It also witnessed the participation of Omani and Saudi business owners.
In October, Saudi Arabia and Oman signed a memorandum of understanding aimed at bolstering economic and planning cooperation based on mutual interests.
The agreement was finalized at the time, with Saudi Minister of Economy and Planning Faisal Al-Ibrahim and his Omani counterpart, Said bin Mohammed Al-Saqri, signing a five-year commitment focused on enhancing medium- and long-term economic planning, studies, and modeling, alongside monetary policies and strategies.
In April, an MoU was signed between the Kingdom and Oman during a meeting between Sultan bin Salem Al-Habsi, Oman’s minister of finance, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development.
Discussions focused on cooperation mechanisms between Oman and the fund, as well as updates on collaborative development projects.
The MoU signed at the time is part of broader initiatives aimed at supporting developmental efforts in Oman, including infrastructure, higher education, vocational training, and projects in industry, mining, and transportation, as well as communications and energy sectors.
Culture meets comfort as Diriyah’s hotel expansion boosts Saudi Arabia’s tourism ambitions
Updated 33 min 51 sec ago
REEM WALID
RIYADH: Saudi Arabia’s tourism sector is poised for a significant leap forward with the planned opening of new luxury hotels in Diriyah – a $62.2 billion mega-development that fuses the Kingdom’s rich cultural heritage with ambitious modernity.
In October, the CEO of Diriyah Co. unveiled plans for the groundbreaking of seven new hotels by the end of the year, to go alongside the first luxury offering, Bab Samhan, opening its doors in December.
As part of the Vision 2030 initiative, these developments are set to bolster Saudi Arabia’s position as a global tourist destination while driving economic growth and creating jobs.
Diriyah is set to play a key role in this ambition, with 33 million tourists expected in Riyadh as part of Vision 2030, including major events such as Expo, as well as sports, cultural, and business gatherings.
“The opening of additional uniquely themed hotels in Diriyah supports the Kingdom’s new ambition to welcome 150 million visitors by 2030, following the achievement of the previous target of 100 million visitors by 2023, which was reached seven years ahead of schedule,” Diriyah Co.’s group CEO, Jerry Inzerillo told Arab News.
Diriyah Co.’s Group CEO, Jerry Inzerillo. Supplied
“The expansion of new hotel openings in Diriyah is anticipated to contribute to an increase in tourism spending, thereby supporting the non-oil economy and achieving financial sustainability goals,” he added.
The developments will also feature luxurious designs rooted in local heritage, with Inzerillo highlighting the Bab Samhan Hotel as a “prime example” of this philosophy.
“It offers an experience rich in authentic Najdi heritage, blending traditional design with high-quality services and a superior level of luxury,” the CEO said.
Other hotels under construction include Orient Express, Raffles, and Baccarat, alongside Armani, Fauchon L’Hotel, Corinthia and Rosewood.
These developments are expected to draw millions of visitors annually while elevating the Kingdom’s reputation on the global stage.
The newly-opened Bab Samhan hotel. Diriyah.sa
Cultural and economic growth
Camilla Bevilacqua, partner at management consulting firm Arthur D. Little, highlighted the broader implications of Diriyah’s hotel expansion.
“Diriyah is recognized as a UNESCO World Heritage site and is the historical home of the Saudi royal family. The development of hotels in this area can attract culturally minded tourists interested in exploring the rich heritage and history of Saudi Arabia,” she said.
Bevilacqua noted the importance of integrating cultural authenticity with high-end tourism. “By offering accommodation options within or near this historical site, Diriyah can become a focal point for cultural tourism. The selection of flagship hotel brands, such as Armani and Baccarat, will be a driver for international visitation and establish Riyadh as a competitive global destination,” she added.
The expansion also addresses critical infrastructure needs, with Bevilacqua noting that the groundbreaking of these hotels will significantly increase accommodation capacity in Diriyah.
Enhancing local economies
Diriyah’s hotel developments are set to generate significant economic benefits, with experts predicting that the establishment of new hotels will create numerous direct employment opportunities across various roles.
“International flagship hotel brands will raise the quality of services and customer experience across Riyadh, setting a new standard for the sector and upskilling talent in the Kingdom,” said Bevilacqua.
Inzerillo echoed this sentiment, citing the broader employment impact. “The Diriyah project, upon its completion, aims to create over 178,000 job opportunities, positively impacting youth employment and generating new prospects for citizens and the local community,” he said.
Indirect job opportunities are also expected to thrive, particularly in sectors such as transportation, retail, entertainment, and local artisanship.
“‘Made in Saudi’ retail, F&B, and experiences can be created around the new hotels to offer a unique cultural experience for international travelers,” Bevilacqua said.
The influx of tourists and increased spending are expected to further support the local economy, with hotels playing a key role in this growth. Inzerillo said that Diriyah is projected to attract 50 million visits annually by 2030, driving this economic boost. “This influx is anticipated to increase tourism spending and enhance local revenues,” he added.
The rise of Diriyah as a tourism hub presents significant opportunities for local firms and entrepreneurs. Bevilacqua notes that hotels can partner with businesses such as restaurants, tour operators, and craft shops to create package deals or promotions that encourage tourists to extend their stay in Riyadh and boost spending.
She also emphasized the potential for the creative industry. “This will allow revitalization of the local artisan and SME scene and increase their contribution to the economy and society, weaving heritage and conservation into modernization,” said the Arthur D. Little partner.
Inzerillo pointed to the Diriyah Accelerator Program for entrepreneurship as a platform for nurturing local talent. “The program enhances capabilities through various events and initiatives, enabling entrepreneurs to benefit from tourism growth in the Kingdom and Diriyah in particular,” he said, adding: “This includes opportunities in areas such as tour guiding, transportation, hospitality, and the development of heritage-based products.”
Diriyah celebrates Saudi Arabia being awarded the 2034 FIFA World Cup. Diriyah.sa
Stimulating foreign investment
The new hotels are expected to catalyze foreign direct investment by attracting international hospitality brands and investors, which will drive increased FDI in the region and bolster the overall economy.
Diriyah’s ambitious plans include over 40 luxury hotels in partnership with global brands such as Four Seasons and Ritz-Carlton. “This initiative bolsters investor confidence in the Saudi tourism sector and enhances the influx of foreign investments into the Kingdom,” Inzerillo added.
The project also aims to build local capabilities. “Leveraging partnerships and international cooperation, local talent is poised to grow, and knowledge transfer will create sustainable tourism and heritage capabilities in the Kingdom,” Bevilacqua said.
Diriyah’s hotel expansion is not just about luxury — it is a cornerstone of Saudi Arabia’s broader tourism strategy under Vision 2030. By blending heritage and modernity, creating jobs, and attracting global investment, the project exemplifies the Kingdom’s efforts to diversify its economy and position itself as a premier global destination.
“As Diriyah becomes a tourism hotspot, it may stimulate growth in other regions and sectors, promoting a comprehensive tourism industry across the Kingdom,” Bevilacqua said.
PIF drives Saudi Arabia’s diversification agenda with bold moves in 2024
PIF ranks among the world’s most influential sovereign wealth funds
PIF’s activities in 2024 were not limited to cutting-edge technologies
Updated 30 December 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s Public Investment Fund continues to play a key role in the Kingdom’s economic transformation, leading efforts to diversify revenue streams and reduce reliance on oil.
With assets under management reaching $925 billion, PIF ranks among the world’s most influential sovereign wealth funds, driving investments in technology, infrastructure, sustainability, and culture throughout 2024.
The non-oil sector now contributes 52 percent to Saudi Arabia’s gross domestic product, reflecting the success of Vision 2030, the Kingdom’s ambitious plan to create a sustainable and diversified economy. Central to this progress, PIF has expanded its reach both domestically and internationally, with landmark initiatives designed to reshape industries and enhance the Kingdom’s global competitiveness.
PIF’s tech ventures
In February, the fund launched Alat, a company dedicated to making Saudi Arabia a global hub for sustainable technology manufacturing. Alat’s partnership with Lenovo Group in May underscored this vision, with the two entities committing $2 billion through zero-coupon convertible bonds.
The collaboration will establish a regional headquarters in Riyadh for the Middle East and Africa, alongside a new manufacturing hub to support Lenovo’s global operations. By June, Alat had expanded its focus with two new business units in electrification and artificial intelligence infrastructure, aimed at meeting the soaring demand for renewable energy technologies and AI-driven solutions.
The electrification initiative is geared toward strengthening grid technology, addressing the increasing energy needs driven by renewables like solar, wind, and hydrogen. Simultaneously, the AI infrastructure segment is set to position Saudi Arabia as a manufacturing powerhouse, leveraging advanced capabilities to cater to global industries.
Space industry leap
Another major milestone came in May when PIF launched Neo Space Group, a company designed to advance Saudi Arabia’s presence in the commercial satellite and space industry.
Neo Space Group announced its focus on satellite communications, earth observation, remote sensing, and navigation technologies, along with a venture capital fund targeting space-focused startups.
“NSG will contribute to the development and deployment of the latest cutting-edge technologies in the space industry through its four dedicated business segments: satellite communications, earth observation and remote sensing, satellite navigation and Internet of Things, as well as a satellite and space-focused venture capital fund,” said PIF.
In December, Neo Space Group made headlines with its acquisition of UP42, a geospatial platform developed by Airbus. This acquisition is expected to significantly enhance Saudi Arabia’s geospatial capabilities, enabling applications across agriculture, infrastructure monitoring, and more, aligning with the Kingdom’s Vision 2030 goals.
Cultural heritage projects
PIF’s activities in 2024 were not limited to cutting-edge technologies. In September, it launched National Interactive Entertainment Co., known as QSAS, which is focused on creating immersive storytelling experiences rooted in Saudi heritage and Islamic culture.
The initiative reflects Saudi Arabia’s broader efforts to balance cultural preservation with business development. QSAS plans to develop and operate interactive exhibitions across the Kingdom while fostering partnerships in construction, event management, and technology.
AI and ICT expansion
The fund also made a major push in artificial intelligence this year. In October, it signed a landmark partnership with Google Cloud to establish an advanced AI hub near Dammam. The agreement, inked during the Future Investment Initiative, is projected to create thousands of jobs and generate $71 billion in economic impact over the next eight years.
Beyond economic benefits, the hub will offer AI training to millions of students and professionals, contributing to national goals of expanding the information and communication technology sector by 50 percent.
Infrastructure investments
Housing infrastructure also came into focus, with the October launch of Smart Accommodation for Residential Complexes Co., or SAARC. This company aims to address the rising demand for workforce housing tied to Saudi Arabia’s large-scale infrastructure projects. SAARC plans to develop residential complexes that adhere to international standards, creating modern living spaces that support the country’s rapid urbanization.
PIF expanded its global investment footprint with a memorandum of understanding signed with Brookfield Asset Management in October. The deal positions PIF as a strategic anchor investor in Brookfield Middle East Partners, a $2 billion fund targeting key sectors such as industrials, health care, and technology. The partnership underscores PIF’s strategy of leveraging international opportunities to strengthen Saudi Arabia’s economic base.
Tourism and hospitality growth
In the hospitality sector, PIF introduced Adeera in December, a new company tasked with operating and managing hotels that combine world-class standards with authentic Saudi hospitality. Adeera is expected to work closely with local developers, fostering private-sector participation and supporting the growth of homegrown brands as Saudi Arabia positions itself as a premier global tourism destination.
Sustainability and innovation took center stage with the December launch of Milaf Cola by PIF subsidiary Thurath Al-Madina. Unlike conventional soft drinks, Milaf Cola is crafted from Saudi dates, eliminating added sugars and emphasizing natural, nutrient-rich ingredients. Introduced during the Riyadh Date Festival, the drink represents PIF’s focus on creating value-added products from local resources while adhering to global food safety standards.
Strategic acquisitions
Throughout the year, PIF pursued an aggressive acquisition strategy, bolstering its portfolio with high-profile deals.
In January, the fund increased its stake in Middle East Paper Co. to 23.08 percent, enabling the company to expand production and enhance operational efficiency.
February saw PIF acquiring a 40 percent stake in Zamil Offshore Co., a key player in the Kingdom’s energy sector.
October marked another milestone as PIF purchased a 40 percent stake in Central Group, a Thai conglomerate interested in retail, real estate, and hospitality.
Rounding the year, PIF announced plans in November to acquire a 54 percent stake in MBC Group for $1.99 billion, solidifying its influence in the entertainment industry.
PIF’s investments in 2024 reflect its multi-pronged approach to transforming Saudi Arabia’s economy. The fund has played a pivotal role in advancing Vision 2030’s objectives, from technology and space exploration to cultural preservation and hospitality. With a focus on sustainability, innovation, and global partnerships, PIF is laying the foundation for a diversified, resilient economy that can compete on the world stage.
As the Kingdom prepares for the next phase of its transformation, PIF’s initiatives in 2024 serve as a testament to its commitment to redefining Saudi Arabia’s economic landscape.
RIYADH: Saudi Arabia’s net foreign direct investment saw a quarter-on-quarter rise of 37 percent in the three months to the end of September, according to the General Authority of Statistics.
Data released by the organization showed that the figure – which reflects the net investment gain for the Kingdom after accounting for both inbound and outbound activities – reached SR16 billion ($4.27 billion) over the period.
The surge was primarily attributed to a significant decline in FDI outflows, which dropped by 74.36 percent during this period to reach SR2 billion.
Meanwhile, FDI inflows, reflecting the investments received by Saudi Arabia, declined by 7.22 percent to SR18 billion.
The Kingdom has implemented significant regulatory reforms over the past two years to bolster foreign direct investment and foster economic diversification under Vision 2030.
The recent regulatory advancements underscore its commitment to positioning itself as an attractive destination for international investors.
These reforms, along with strategic investments in giga-projects like NEOM, align with Saudi Arabia’s Vision 2030 goals of attracting $100 billion in annual FDI and raising its contribution to gross domestic product to 5.7 percent by 2030.
The latest figures are calculated using a new methodology introduced by the Ministry of Investment in October.
The updated approach aligns with the International Monetary Fund’s sixth edition of the Balance of Payments Manual, providing enhanced transparency and accuracy in tracking cross-border transactions.
By focusing on innovation, enhancing global competitiveness, and modernizing its legal framework, the Kingdom continues to signal its openness for business and its readiness to engage with the international investment community.
Key regulatory changes include introducing a new investment regulation, amending the labor decree, and updating the laws governing companies and civil transactions.
Together, these initiatives are designed to reduce barriers to entry for foreign businesses, protect investor rights, and align legal frameworks with international standards.
The updated law replaces the foreign licensing system with a streamlined register managed by the Ministry of Investment.
It ensures equal treatment for Saudi and foriegn investors while enhancing protections against expropriation and safeguarding intellectual property rights. This simplification is expected to attract more FDI and boost stakeholder confidence.
According to a study by PwC in August, the amendments to the labor law align with global practices, offering improved benefits such as extended maternity and paternity leave, as well as bereavement leave.
Other updates address probation periods and dispute resolution mechanisms, reducing administrative burdens and fostering stronger employer-employee relationships.
In November, the Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved key measures to boost FDI and enhance international economic engagement.
Among these was the approval of the national general framework and guiding principles for such funding, aimed at fostering stronger ties with global organizations.
FDI inflows reached SR96 billion in 2023, a 50 percent annual increase.
The Cabinet also endorsed agreements to strengthen regional and international cooperation, including a tax treaty with Qatar to avoid double taxation and an aviation and space exploration framework with the US.
Additionally, the Kingdom joined the Cement and Concrete Breakthrough Initiative, reinforcing its sustainability and climate goals.
Domestically, the Cabinet highlighted advancements in tourism, with Saudi Arabia climbing 15 places in global tourist revenue rankings since 2019, and commended progress in economic collaboration with India in areas like technology, infrastructure, and sustainable transportation.
The session also reaffirmed the nation’s commitment to regional peace, global health initiatives, and economic diversification.
