World leaders take centerstage in high-level COP28 event

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Updated 02 December 2023
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World leaders take centerstage in high-level COP28 event

  • UAE ruler announces the establishment of a $30 billion fund for global climate solutions

DUBAI: More than 130 world leaders take centerstage as they address the United Nations climate conference in Dubai over the next two days to deliver national statements.

The high-level segment of COP28 would hear from heads of states and governments, including UAE President Sheikh Mohamed Bin Zayed Al-Nahyan, Egyptian President Abdel Fattah El-Sisi, Jordan’s King Abdullah, Qatar’s ruler Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan.

READ MORE: Click here for our coverage of COP28

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1305 GMT




Recep Tayyip Erdogan, President of Turkiye, speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023. (AP)

“When it comes to combating climate change, even though our historical responsibility of global greenhouse emissions is less than 1 percent, we’re taking significant steps with our own means,” Recep Tayyip Erdogan, President of Turkiye, said in his speech.

“We plan to reach the net zero emissions target by the year 2053, we have doubled our emission reduction target for the year 2030.”

“Within this scope, by the end of this year, we expect to have mitigated 66.6 million tons of equivalent carbon dioxide,” he added.

“The share of renewables in our installed power generation capacity has been increased up to 55 percent. With this rate, Turkiye currently ranks the fifth in Europe and the twelfth in the world in terms of installed renewable energy capacity.”

“In regard to geothermal energy capacity we are ranked the first in Europe and fourth in the world. And when it comes to hydropower, Turkiye ranks the second the Europe and ninth in the world.”

1238 GMT




Santiago Peña Palacios, President of Paraguay.

“In my country Paraguay, all energy is clean. 100 percent is clean and renewable,” according to Santiago Peña Palacios, President of Paraguay.

1230 GMT




to Kassym-Jomart Tokayev, President of Kazakhstan.

“We were the first country in the region to have ratified the Paris Agreement and adopted a carbon neutrality strategy by 2060,” according to Kassym-Jomart Tokayev, President of Kazakhstan.

“The resulting new environmental code of Kazakhstan will drive comprehensive adaptation of green technology in almost every sector in our economy.”

“There is extraordinary potential for wind and solar power in my country as well as green hydrogen. We will continue to work closely with our partners to unlock it,” he said.

“As the world’s leading exporter of uranium, providing 43 percent of global supply, Kazakhstan plays a crucial role in carbon free electricity generation on a global scale. As the world decarbonizes in the coming decades, critical minerals including rare earth metals will become indispensable, Kazakhstan is poised to become a major supplier of these transition minerals.”

“To build a momentum on climate action in central Asia, we decided to convene a regional climate summit in Kazakhstan in 2026 under the United Nations’ auspices.”

1218 GMT




Mohamed Cheikh El-Ghazouani, President of Mauritania.

“Climate change today is a battle for all of us, we either all win or all lose,” Mohamed Cheikh El-Ghazouani, President of Mauritania, said.

“It is clear to all, that this solidarity is still not to the required level, it is therefore essential to improve finance for environmental transformation and to provide support to developing countries without adding to their debt.”

1211 GMT




Denis Sassou Nguesso, President of Congo.

“I take this opportunity to reiterate the Republic of Congo’s steadfast commitment and determination to play an active role in the global effort to combat climate change,” Denis Sassou Nguesso, President of Congo, meanwhile said.

1205 GMT




Umaro Sissoco Embalo, President of Guinea-Bissau.

“Our coastal communities face rising sea levels and their harvests are impacted by increasingly unpredictable weather patterns and we face a loss of biodiversity,” according to Umaro Sissoco Embalo, President of Guinea-Bissau.

1202 GMT




Emmerson Dambudzo Mnangagwa, President of Zimbabwe

“We are offering diverse opportunities for carbon trading in the energy sector though investment in solar, wind, and geothermal power generation,” Emmerson Dambudzo Mnangagwa, President of Zimbabwe, pitched in his speech.

1159 GMT




Gitanas Nausėda, President of Lithuania.

“At first, Lithuania made a strategic decision to seek energy independence. We have built our own LNG terminal which decreased prices and turned Lithuania into a regional gas hub,” Gitanas Nausėda, President of Lithuania, said in his speech.

1156 GMT




Samia Suluhu Hassan, President of Tanzania.

“At this COP28, we seek to mobilize the pot to increase the use of clean and affordable cooking fuel and technologies across Africa, especially for women,” Samia Suluhu Hassan, President of Tanzania, said at the High-Level Segment for Heads of State and Government session at the United Nations climate summit.

1150 GMT




Ursula von der Leyen, President of the European Commission.

“Last September, at the climate action summit in New York, we called for concrete action. Now in Dubai we have to deliver,” Ursula von der Leyen, President of the European Commission, told the High-Level Segment for Heads of State and Government session at the United Nations climate summit.

“The European Union has peaked already, we have reduced emissions and we are on track to overshoot our target for 2030.”

1137 GMT




Sheikh Mansour bin Zayed Al-Nahyan, Vice President and Deputy Prime Minister of the UAE. (Abdulrahman Fahad Bin shulhub/AN)

“We work today for tomorrow, and we cooperate for the generations of the future,” Sheikh Mansour bin Zayed Al-Nahyan, Vice President and Deputy Prime Minister of the UAE, said in his speech.

“We were the first to pledge to achieve carbon neutrality by 2050. We have allocated $163 billion for expansion of renewables and to transition towards renewable energies,” he added.

1130 GMT




Shavkat Mirziyoyev, President of Uzbekistan, at the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023.

“We commend the global initiative of the UAE in combating climate change and its significant contribution to green development,” Shavkat Mirziyoyev, President of Uzbekistan, said in his speech.

“Transition to a green economy and achieving carbon neutrality are the key strategic objectives of new Uzbekistan… We intend to organize a conference in Uzbekistan in 2024, on the topic of climate migration” in cooperation with the United Nations.”

1116 GMT




Kenyan president William K. Ruto speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023.

“As we convene here in Dubai, we must appreciate that the presence of almost 200 nations speaks volume about the magnitude of this event and what it stands for,” according to Kenyan president William K. Ruto.

“The long-standing adversarial dynamic between global north and global south proves practically counterproductive. This division has hindered our ability to unite and leverage our collective strength, and robs us of tremendous opportunities. Yet, in the face of a threat that endangers the health of our planet, and our very existence, we must find in collective action a force that neutralizes and transcends these divisions. Climate change does not respect artificial distinctions, traditional boundaries or old antagonisms. Instead, it should unite us against a shared borderless challenge,” according to Ruto.

“Turning Africa into a green powerhouse is not just essential for the continent, it is also vital for global industrialization (and) decarbonization.”

1114 GMT




Sultan Hassanal Bolkiah of Brunei speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023. (AFP)

“Climate change has emerged as our generation’s most urgent challenge, threatening our existence,” according to Sultan Hassanal Bolkiah of Brunei.

“We aim to plant half a million trees by 2035, expanding our carbon think further,” the Brunei leader said.

1101 GMT




Jordan’s King Abdullah II speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)

“This year’s conference of the parties must recognize even more than ever that we cannot talk about climate change in isolation from the humanitarian tragedies unfolding around us,” King Abdullah II of Jordan said in his speech.

“As we speak, the Palestinian people are facing an immediate threat to their lives and wellbeing. In Gaza over 1.7 million Palestinians have been displaced from their homes. Tens of thousands have been injured or killed in a region already on the front line of the climate change.”

“As we meet here today to talk about inclusivity in climate response, let’s be inclusive of the most vulnerable: Palestinian civilians impacted by the war on Gaza, populations around the world affected by conflict and poverty,” he added.

“In a region already on the front lines of climate change, the massive destruction of war makes these environmental threats of water scarcity and food insecurity even more severe,” he said, in a clear reference to fighting between Israel and Hamas militants in Gaza that resumed on Friday after a seven-day truce.

1055 GMT




Egypt’s President Abdel Fattah El-Sisi speaks during the high-level Segment session at the United Nations climate summit on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)

“COP28 is taking place amid dangerous and grave political challenges that are no less dangerous than climate change,” Egypt’s President Abdel Fattah El-Sisi said at high-level session at the United Nations climate summit.

“Egypt is well aware of the importance of reinforcing collective work to address the challenge of climate change and to guarantee eco -friendly development to preserve planet earth for coming generations.”

1041 GMT




Dennis Francis, president of the UN General Assembly, speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

“The Paris agreement remains the best answer to the effects of the climate crisis,” according to Dennis Francis, President of the United Nations General Assembly.

“Progressive transformative action is needed now, to stabilize the atmospheric temperature and to insure sustainability of the planet and the human civilization,” he said during a plenary session at the COP28 UN Climate Summit.

“I am pleased to announce that I will convene the first ever general assembly sustainability week at UN headquarters in New York in April 2024.”

“This week will consolidate several high level already mandated events, promoting sustainability in transport, tourism and infrastructure sectors,” Francis added.

“We need to not only be risk informed but also resilient at every level and across all stakeholders, thus leaving no one behind.”

1032 GMT




Narendra Modi, India’s Prime minister speaks at the COP28 High-Level Segment National Statements event. (Reuters)

“Thanks to our collective efforts, today the world is convinced that for the welfare of humanity, everyone’s interest must be protected and everyone’s participation is essential,” Narendra Modi, India’s Prime minister, said at the COP28 High-Level Segment National Statements event.

“We have set targets to bring our emission intensity down to 45 percent by 2030, we have decided that we will increase the share on non-fossil fuel to 50 percent and we shall continue to move ahead in achieving our goal of net zero by 2070.”

“We have together recognized that there’s a need to take climate finance commitment from billions to several trillions. We do not have much time to correct the mistakes of the last century, over the past century a small section of humanity has indiscriminately exploited nature, however entire humanity is paying the price for this,” he said.

“Friends, we do not have much time to correct the mistakes of the last century. Over the past century, a small section of humanity has indiscriminately exploited nature. However, entire humanity is paying the price for this, especially people living in the global south.”

“We must resolve that every country shall fulfil the climate targets it is setting for itself and the commitments it is making.”

Modi also offered to host the UN’s COP33 climate conference in 2028. Speaking at COP28 talks in Dubai, Modi said every country must fulfil their climate targets and “work in unity.”

“Today the entire world is watching us. Mother Earth is looking toward us to protect her future. We have to succeed,” he said.

“From this platform today, I propose that India will host COP33 in 2028.”

Modi has sought to raise India’s profile on the world stage as leader of the planet’s most populous country, which hosted a G20 summit this year.

0920 GMT




President Luiz Inacio Lula da Silva of Brazil speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023. (AP)

Luiz Inacio Lula da Silva of Brazil, home to most of the world’s biggest natural carbon-capture zone on land, the Amazon rainforest, said “the planet is tired of climate agreements that were not fulfilled” and he said he has had enough of “eloquent and empty speeches.”

“In the north of Brazil, the Amazon region suffers one of the most tragic droughts of its history. In the South, we are facing tempests and hurricanes that lead to a lot of destruction and death,” he said.

Lula, who a year earlier was treated like a rock star after his defeat of right-wing Jair Bolsanaro, called for climate justice for poorer nations that didn’t cause the problem and railed against $2 trillion spent on weapons last year when the money should be spent on fighting hunger and climate change, not wars.

He said Brazil will stop Amazon deforestation by 2030.

“No country will solve their problems alone. We are all obliged to act together beyond our borderlines. Brazil is willing to lead as a role model,” he said. “The world is already convinced of the potential of renewable sources of energy. Now is the time to face the debate about the slow-motion pace of the decarbonization of the planet, and to work towards an economy that will be less reliant on fossil fuel. We have to do it, and in a way that is urgent and fair.”

0850 GMT




King Charles III speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

Britain’s King Charles III is praying that the UN’s COP28 climate talks will be a “critical turning point” in the fight against global warming, he told world leaders in Dubai on Friday.

“I pray with all my heart that COP28 will be another critical turning point toward genuine transformational action,” he told the World Climate Action Summit, held in parallel with COP28.

“We are seeing alarming tipping points being reached.”

“It worries me greatly that we remain so dreadfully far off track,” the King added, after the UN’s first official progress report in September found that the world remained dangerously off course.

“In your hands is an unmissable opportunity to keep our common hope alive,” said the British monarch, wearing a light suit with pink shirt and blue tie.

The lifelong environmentalist spoke at COP26 in Scotland in 2021 but did not attend the last conference in Egypt.

The British monarch also said that “unless we rapidly repair and restore nature’s unique economy, based on harmony and balance, which is our ultimate sustainer, our own economy and survivability will be imperiled.”

“I have seen across the commonwealth and beyond, countless communities which are unable to withstand repeated shocks triggered by climate change.”

0830 GMT




UN Secretary-General Antonio Guterres speaks at the opening ceremony of the high-level COP28 event in Dubai. (AP)

“We are miles from the goals of the Paris Agreement – and minutes to midnight for the 1.5°C limit. But it is not too late,” UN Secretary-General Antonio Guterres said in his speech.

“You can prevent planetary crash and burn. We have the technologies to avoid the worst of climate chaos, if we act now,” he said.

“The global shift to renewables is inevitable. The only question is how much heating our planet will endure before it happens,” Guterres added. “I urge countries to speed up their net zero timelines, to get there as close as possible to 2040 in developed countries and 2050 in emerging economies.”

“Climate chaos is fanning the flames of injustice,” Guterres said. “Global heating is busting budgets, ballooning food prices, upending energy markets, and feeding a cost-of-living crisis. Climate action can flip the switch.”

Guterres, a long-time critic of oil, gas and coal use that is causing climate change, fired his strongest shots yet against the industry, saying, “we cannot save a burning planet with a firehose of fossil fuels.”

In a direct contradiction to fossil fuel-aligned nations and even the presidency of the talks, he said the only way to limit warming to the goal set in 2015 requires eliminating oil, coal and gas use, saying “not reduce, not abate, phase out.”

“I urge governments to help industry make the right choice – by regulating, legislating, putting a fair price on carbon, ending fossil fuel subsidies, and adopting a windfall tax on profits.”

“Developed countries must show how they will double adaptation finance to $40 billion a year by 2025, as promised, and clarify how they deliver on the $100 billion, as promised,” Guterres said. “The climate challenge is not just another issue in your inbox. Protecting our climate is the world’s greatest test of leadership. I urge you to lead,” he added.

0815 GMT




UAE President Sheikh Mohamed Bin Zayed Al-Nahyan speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

UAE President Sheikh Mohamed Bin Zayed Al-Nahyan said that the UAE has set a national goal to achieve net-zero emissions by 2050. He highlighted the country’s strong commitment to climate action, emphasizing decades of effort in diversifying the economy and advancing capabilities in renewables.

“The UAE is committed to a 40 percent reduction in emissions by 2030. To date, we have invested $100 billion in financing climate action, focusing on renewable and clean energy. We are also committed to investing approximately US$130 billion over the next seven years,” he said in his speech

“We are finding practical ways to accelerate the world’s transition to low-emission economy,” the UAE leader said, and noted that the lack of financing has long been one of the biggest obstacles to advancing climate action globally.

Sheikh Mohamed also announced the establishment of a $30 billion climate fund for global climate solutions.

The fund is designed to bridge climate finance gap and aims to stimulate $250 billion of investment by 2030, he said.

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Participating world leaders pose for a family picture at the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders pose for a family picture at the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)

The COP28 conference notched an early victory on Thursday with the launch of a long-awaited fund to address growing loss and damage from wilder weather and rising sea in vulnerable countries.

Initial pledges have been made to the fund to officially put it into operation, with a $100-million contribution from the UAE matched with the same from Germany.

Britain gave just over $50 million, while the United States offered $17.5 million and Japan $10 million.

The European Union and its member states later confirmed a further $145 million, bringing the total to more than $420 million so far.

Delegates however face two weeks of tough negotiations on an array of issues that have long bedeviled climate talks, starting with the future of fossil fuels.

Saudi Arabia is hosting the third edition of the Saudi Green Initiative Forum on Dec. 4, alongside UN’s COP28 event, to highlight its dedication to build a greener future at a time of multibillion dollar giga-projects.

 

 

The SGI forum will gather influential figures, climate experts and thought leaders to present their insights and recommendations for tackling climate change as well as showcase the initiative’s achievements and plans.

with agencies


Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

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Jordan tourism revenues climb 11.9% in H1 despite regional headwinds

RIYADH: Jordan’s tourism revenues rose 11.9 percent year on year in the first half of 2025 to reach $3.67 billion, underscoring the sector’s resilience amid geopolitical tensions in the region. 

According to data from the Central Bank of Jordan, the growth came despite a slight setback in June, when monthly revenues fell 3.7 percent to $619.2 million, state-run Petra news agency reported. 

Writing for Arab News at the time, Turki Faisal Al-Rasheed said that the Middle East stands at a crossroads as tensions between Iran and Israel escalate while explaining that the Iranian-Israeli conflict marks a pivotal moment for the region, where competing visions of security and stability collide.

Despite this, Jordan’s performance reflects a broader tourism surge across the Middle East, with a May release by the World Travel & Tourism Council showing the sector added $341.9 billion to gross domestic product and 7.3 million jobs in 2024, with projections of $367.3 billion and 7.7 million jobs in 2025. 

Saudi Arabia led the region with a 148 percent rise in international tourism revenue in 2024, according to its Ministry of Tourism, while Oman, the UAE, and Qatar continued to attract strong visitor flows through investment, connectivity, and major events. 

Citing the central bank data, Petra said: “Tourism revenues from Asian visitors surged by 42.9 percent during the first half of the year, while revenues from European tourists increased by 35.6 percent, Americans by 25.8 percent, Arabs by 11.5 percent, and other nationalities by 43.0 percent.”  

It added: “Conversely, revenues from Jordanian expatriates visiting the Kingdom registered a modest decline of 0.8 percent over the same period.” 

Spending by Jordanians on outbound tourism rose 3.3 percent year on year in the first half of 2025, reaching $999.7 million, despite a 22.7 percent decline in June alone, when spending fell to $195.6 million. 

This comes on the back of a strong start to 2025, with Jordan welcoming 1.51 million visitors in the first quarter — a 13 percent increase from the same period last year — while receipts rose 8.85 percent to 1.22 billion Jordanian dinars ( $1.72 billion), according to the Ministry of Tourism and Antiquities’ first-quarter report. 

The recovery was further supported by the return of air connectivity, which had nearly disappeared in 2024. New agreements with European carriers expanded the number of low-cost direct routes to 25 this year, including 20 to Amman for the summer and five to Aqaba in the winter. These routes are expected to bring in around 270,000 travelers, the report added. 

Looking ahead, the ministry said it is developing a new National Tourism Strategy for 2025–2028, building on the previous plan and aligning with the country’s Economic Modernization Vision. 

The updated roadmap aims to diversify source markets, including China, India, Russia, Africa, and Southeast Asia, and promote high-potential segments such as medical, wellness, faith-based, adventure, and meetings, incentives, conferences, and exhibitions, or MICE, tourism. 


EU pledges $46.4bn for MENA renewables, borders, and migration

Updated 14 min 39 sec ago
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EU pledges $46.4bn for MENA renewables, borders, and migration

JEDDAH: Renewable energy, border security, and migration pathways in the Middle East and North Africa will receive €42.5 billion ($46.4 billion) from the EU from 2028, it has been announced.

This doubled financial commitment, under a new funding instrument, aims to enhance stability and cooperation in the region.

Speaking during a press conference in Brussels on July 17, EU Commissioner for Democracy and Demography Dubravka Suica said the increased budget reflects the bloc’s strategic shift toward deeper cooperation with countries in region.

“This is a strong financial toolbox, with which we will invest in stability, security and prosperity, through mutually beneficial partnerships with our Southern neighbors in the Middle East, North Africa and the Gulf,” she said, emphasizing that the Mediterranean is not only a region of challenges but also one of opportunities.

Suica further noted that the EU will support partner countries in addressing the underlying causes of socio-economic fragility, which she said are central to political instability and radicalization.

She added that the bloc will also confront the challenges of the green transition by investing in renewable energy projects, benefiting citizens on both sides of the Mediterranean.

“These increased funds will enable us to respond more effectively to an increasingly volatile geopolitical context right at our doorstep,” the commissioner said.

She stressed that the stability and prosperity of the Mediterranean are directly linked to Europe’s own.

“Their safety is our safety. Their success is our shared success. Their protection of borders is also ours.”

Suica described the Multiannual Financial Framework as an instrument that will strengthen the union, both internally and internationally.

“This new framework enables us to better protect our interest on a global stage and protect our values and interests in an increasingly complex geopolitical context,” she concluded.


Closing Bell: Saudi bourses end week in red at 11,007

Updated 36 min 27 sec ago
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Closing Bell: Saudi bourses end week in red at 11,007

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Thursday, shedding 31.76 points, or 0.29 percent, to close at 11,006.98.

The benchmark index recorded a total trading turnover of SR4.19 billion ($1.12 billion), with 125 stocks advancing and 117 declining.

The Kingdom’s parallel market Nomu also slipped, losing 50.11 points to close at 27,294.97.

The MSCI Tadawul Index dropped 0.32 percent to settle at 1,410.87.

LIVA Insurance Co. was the best performer on the main market, with its share price surging 9.94 percent to SR13.93.

Emaar The Economic City saw its shares rise by 5.15 percent to SR13.69, while Alistithmar AREIC Diversified REIT Fund gained 4.57 percent to reach SR9.15.

Tourism Enterprise Co. recorded the steepest decline, falling 6.45 percent to SR0.87.

On the announcements front, Lana Medical Co. said it secured multiple contracts worth SR57.1 million from the Ministry of Health.

According to a Tadawul statement, the first contract, valued at SR53.5 million, involves the collection and storage of hazardous waste at health centers, hospitals, and specialized facilities in the Al-Jouf region and Al-Qurayyat Governorate.

The second contract, worth SR3.6 million, covers the transportation of medical waste to the Riyadh First Health Cluster.

The company stated that the impact of these 60-month contracts will be reflected in its financial results starting in the fourth quarter of 2025.

In a separate filing, Lana Medical Co. announced a two-year agreement valued at SR10 million with the National Unified Procurement Co. to manage medical waste.

Shares of Lana Medical Co., listed on the Nomu parallel market, rose 7.98 percent to close at SR36.


Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

Updated 17 July 2025
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Saudi Arabia’s retail real estate growth prospects strong: S&P Global 

RIYADH: International retail brands attracted by social and economic shifts in Saudi Arabia are set to deliver real estate sector growth to the Kingdom, according to an analysis.

In its latest report, S&P Global stated that the residential real estate sector in the nation also appears strong, with young Saudi families relocating to cities in search of work opportunities. 

Strengthening the real estate sector is one of the crucial goals outlined in Vision 2030, as Saudi Arabia continues to diversify its economy away from oil and position itself as a global business and tourist destination. 

The Kingdom’s Real Estate General Authority expects the property market to reach $101.62 billion by 2029, with an anticipated compound annual growth rate of 8 percent from 2024.

In its latest report, S&P Global said: “Saudi retail real estate growth prospects are strong. Significant social and economic changes in the Kingdom are making it a major target market for international brands in the fashion, luxury, and food and beverage segments. As a result, demand for premium retail space is increasing.” 

In June, global real estate consultancy Knight Frank, also echoed similar views, stating that Saudi Arabia’s commercial real estate sector is witnessing exponential growth, with rents for Grade A office spaces in the Kingdom’s capital reaching SR2,700 ($719.95) per sq. meter by the end of the first quarter, representing a 23 percent rise compared to the same period in the previous year. 

In its latest analysis, S&P Global noted that Saudi Arabia’s retail landscape is expected to face several challenges, including oversupply, particularly in the shopping mall sector. 

“Saudi retail real estate could face a supply wall. Knight Frank forecasts Riyadh’s supply to grow by 50 percent by 2027 and Jeddah’s to grow 75 percent over the same period. This could lead to rental discounts, revenue-sharing lease models, and other incentives to maintain occupancies,” said S&P Global. 

The US-based agency further stated that the Kingdom’s retail real estate sector has strong growth prospects, provided that careful planning and market positioning are implemented, which are expected to help mall owners ensure long-term success.

In a broader context, the report projected that Dubai and Abu Dhabi are experiencing resilient demand and modest rental growth for retail real estate, with prime super-regional malls continuing to dominate the market, which has led to mall owners expanding their offerings.

S&P Global added that Dubai’s commercial real estate sector is booming, as vacancy rates remain at an all-time low of 8.6 percent, and demand for grade-A offices drives up rentals. 

“Supportive regulations for businesses, dynamic economic environment, and the low tax regime sustains the city’s attractiveness for global businesses and family offices,” said the report. 

S&P Global cautioned that oversupply in the oil market will continue to outweigh slow oil demand growth through 2025 and beyond, and this could negatively impact the growth of real estate sectors in both Saudi Arabia and Dubai. 

“Unfavorable tariffs could also lead to economic slowdown and weaker market sentiment. This could have some impact on residential prices and rents as we believe there is good correlation, despite Dubai’s economy being less reliant on oil. Saudi Arabia and its spending on Vision 2030 remain highly dependent on oil prices,” added the report. 

According to the analysis, the current ceasefire between Israel and Iran has reduced immediate regional credit stress; however, an escalated, prolonged geopolitical conflict could lead to an expatriate exodus from the region, severely impacting real estate prices and rents.


Syria announces sweeping tax reforms to boost transparency, investment

Updated 17 July 2025
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Syria announces sweeping tax reforms to boost transparency, investment

RIYADH: Syria’s Finance Ministry has announced a major overhaul of the country’s tax system, set to take effect in early 2026, as part of broader efforts to modernize fiscal policy, enhance transparency, and attract investment.

According to a statement carried by the state-run SANA news agency, the draft law for the new income tax system is currently open for public consultation until July 30. The reforms are designed to ease the burden on taxpayers, promote fairness, and stimulate economic activity through clearer and more equitable rules.

Under the proposed system, individuals earning less than $12,000 annually will be fully exempt from income tax, in a move aimed at supporting low-income earners.

Corporate tax rates will be tailored by sector, replacing the current “flat income committees” with a more transparent and structured mechanism.

The reforms will also unify multiple charges into a single tax fee to eliminate double taxation, while offering deductions for taxpayers who make verified social contributions.

Enhanced digital systems—including mandatory electronic invoicing and QR code integration—will be introduced to curb tax evasion and strengthen compliance.

To improve trust and streamline the resolution of tax disputes, the ministry plans to implement simplified procedures, with complex cases referred to a specialized tax court. Notably, the burden of proving income sources will shift from the taxpayer to the tax authority—a significant change from the existing framework.

In addition, incentives will be introduced for timely payment, and a separate initiative will address the settlement of outstanding tax dues to protect public funds without overburdening taxpayers.

The Finance Ministry said the changes reflect its commitment to building a fair, flexible, and modern tax environment that can support Syria’s broader economic recovery.