Saudi Arabia, IAEA discuss cooperation on development of nuclear energy

Along with KHNP and the IAEA engaging in discussion with Saudi Arabia to help the country realize its nuclear ambitions, the World Nuclear Association, the global nuclear industry trade body, has also been holding talks with the Kingdom. File
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Updated 08 December 2023
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Saudi Arabia, IAEA discuss cooperation on development of nuclear energy

DUBAI: The International Atomic Energy Agency, the global overseer of the nuclear industry, says it is collaborating with Saudi Arabia to assist the Kingdom in developing its nuclear power production sector.

Given its key role in the regional energy landscape, there is a pressing need for production to transition from fossil fuels to low-carbon or zero-carbon emitting sources.

Wei Huang, director at the Department of Nuclear Energy of IAEA told Arab News in an interview on the sidelines of the 2023 Climate Change Conference that the Kingdom’s “very fast development” towards nuclear energy has been noticed by the agency.

“Now they are in the bidding process to try to get nuclear power into their energy mix. So, we hope we can see a substantial outcome of this process. We are seeing quite strong interest in this region in using nuclear power to improve the energy mix and the security energy mix, but also help to decarbonize the greenhouse gas emissions in the region,” he said.

Huang noted it is encouraging that the countries in this region, which are rich in fossil fuels, are now looking at nuclear energy as an alternative to minimize carbon emissions. He added that the IAEA supports member nations looking to develop nuclear power production. 

“Our agents provide a lot of technical support to make sure the country can be prepared well before they are moving toward nuclear power, including help them to review their infrastructure.”

He added that there are 19 milestones that every country must achieve before taking the nuclear route and that IAEA assists them in reaching these landmarks, which cover a vast spectrum from nuclear, finance, funding, human resources, safety and safeguards.

Huang welcomed statements from US Special Envoy on Climate Change John Kerry, voicing his appreciation for Kerry’s emphasis on global collaboration in nuclear fusion. He highlighted the proactive engagement of the IAEA in nuclear fusion technology alongside its partners and member states.

“We see quite a significant development in this area. Of course, compared to fission, which has been widely used over decades, there is still a lot of work to be to be done to make sure that fusion can be really be deployed in the coming decades. And so our agency has, you know, discussed with our member states and also partner to see how much we can do. We are now working on how to transfer nuclear fusion from mainly the science focus to more engineering-focused activities, including the regulatory framework on the fusion. So this is what the agency is doing now and there will be a lot of work to be done in a couple of years to make sure all the aspects had been prepared well for,” Huang said.

While Saudi Arabia is at the initial stage of nuclear power development, its neighbor, the UAE, has already established three operational units at its Barakah Nuclear Power Station, while the fourth unit is in the pipeline. 

“At Barakah, we have four units, of which three are operational. The fourth unit will come online soon. Together, the four units will produce about 5.6 gigawatts of electricity, which is equivalent to 25 percent of the total electricity production in the UAE. At Barakah, we have used APR1400 reactors, a Generation 3+ nuclear reactor built with Korean technology, constructed to the highest level of safety and quality. Moving forward, we would like to invest in other nuclear power plants and will examine all options,” Khaled Al-Shehhi, nuclear fuel quality surveillance manager at Emirates Nuclear Energy Corp., which owns Barakah, told Arab News.

The Barakah Nuclear Power Station is a $20 billion project bagged by the Korea Hydro & Nuclear Power Co., a state-owned enterprise and one of the world’s largest operators of nuclear power plants. The company says it is also looking to develop its exports in other markets.

“We are here at COP28 to introduce our Korea Small Modular Reactor known as i-SMR. They are really sustainable energy solutions that will help nations to reach net zero goals. Regarding the development and export of our i-SMR, KHNP is actively engaged in discussions with various countries, including Philippines and the UAE. The adoption of our i-SMR is expected to accelerate the journey toward a carbon neutrality, especially in countries facing infrastructure limitations for large nuclear power plants such as South East Asia region and some regions which have difficulties in tapping renewable energies,” Sonia Sunyoung Hong, SMR overseas business team manager at KHNP told Arab News.

She added that KHNP’s relationship with the UAE could be a perfect example for other nations in the region, including Saudi Arabia. 

“Our relationship with the UAE is a good example of how we get countries with no nuclear experience. For instance, when we began working with the UAE in 2009, the UAE government had no experience of nuclear industry. They did not have any regulations, guidelines at all. KHNP helped and supported the government in developing concrete regulations and guidelines for the nuclear power plant implementation for the first time for the world,” Hong said.

As well as the IAEA engaging in discussions with Saudi Arabia to help the Kingdom realize its nuclear ambitions, the World Nuclear Association, the global industry trade body, has also been holding talks with Riyadh, said King Lee, head of policy and industry engagement at WNA.

“Saudi Arabia has been planning to deploy nuclear energy, and they have been planning that for some time. It is really aimed to address that quality need for clean power. Currently, most of the electricity generated from Saudi Arabia is from fossil fuels, from both burning of gas and oil. So nuclear power can help to generate clean power for Saudi Arabia. So Saudi Arabia is looking for both large reactors and the small, more advanced technology, small modular reactors. So, both the technologies are being considered for Saudi Arabia. We have been discussing with the Saudi government and institutions,” the official told Arab News.

When discussing fusion energy, he agreed with Huang of IAEA that it was still an evolving technology. 

 “Fusion is a technology that is currently under development, and we continue to support the research and development so that, hopefully, fusion reactors will become technically and commercially deployable. Research is going on in many countries, but we don’t have a timetable on as to when it may become available,” the WNA executive added.


Saudi Ministry of Human Resources and Social Development leads in 2024 Digital Transformation Index

Updated 15 sec ago
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Saudi Ministry of Human Resources and Social Development leads in 2024 Digital Transformation Index

  • Ministry ranked second overall among government agencies
  • Index assesses government agencies’ adherence to key digital transformation standards

JEDDAH: Saudi Arabia’s Ministry of Human Resources and Social Development ranked first among ministries and second overall with government agencies in the 2024 Digital Transformation Index, underscoring the nation’s commitment to technological advancement.

The award ceremony, held on Dec. 15 in Riyadh, was part of the Digital Government Forum, which featured panel discussions, workshops, and presentations from experts in areas such as artificial intelligence, cybersecurity, and e-services. 

The event coincided with the 19th edition of the UN Internet Governance Forum, hosted in the Saudi capital from Dec. 15— 19 under the theme “Building our Multistakeholder Digital Future.”

The index assesses government agencies’ adherence to key digital transformation standards, analyzes their current progress, and tracks the development of their digital journey based on best practices, aligning with the goals of Saudi Vision 2030.

Following the Ministry of Human Resources and Social Development, the Ministry of Justice ranked second in the innovation category of the index, the Ministry of Transport and Logistic Services came third, the Ministry of Hajj and Umrah was fourth, and the Ministry of Energy came in fifth, among 24 ministries.

The Ministry of Human Resources and Social Development also received an excellence certificate from the Digital Government Authority for its Mowaamah application, which supports services for individuals with disabilities, recognizing its impactful contributions to digital transformation and leadership in this field, according to the ministry.

The body also earned another certificate for its use of emerging technologies at the government level, awarded by the Digital Government Authority.

These recognitions highlight the ministry’s commitment to digital transformation, focusing on enhancing beneficiary experiences by employing advanced technologies and offering innovative solutions, the Ministry of Human Resources and Social Development said in a statement.

It added that its digital transformation strategy strengthens services across over 1,000 digital services and procedures, benefiting more than 32 million people.

According to the UN’s biennial E-Government Development Index for 2024, published in September, Saudi Arabia rose 25 ranks, positioning itself among the leading countries in global rankings.

The Kingdom ranks first in the region, second among G20 countries, and seventh on the E-Participation Index. Riyadh is also ranked third among 193 global cities.

The compilers of the index also praised Saudi Arabia for its significant developments in the field of digital government, thanks to which it ranked sixth in the world.

The UN report highlighted that the Kingdom has achieved 100 percent maturity in digital government regulations, as well as in the accessibility and sharing of open government data with citizens and businesses.


Egypt sees 181% growth in financial inclusion over 8 years

Updated 38 min 22 sec ago
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Egypt sees 181% growth in financial inclusion over 8 years

  • Central bank initiatives boost access to financial tools for millions

RIYADH: Financial inclusion in Egypt has surged by 181 percent over the past eight years, with 71.5 percent of eligible citizens gaining access to banking services by mid-2024, according to an official report.

The Central Bank of Egypt revealed that the number of citizens with access to transactional accounts — including bank accounts, Egypt Post accounts, mobile wallets, and prepaid cards — has risen to 48.1 million out of 67.3 million eligible individuals aged 16 and above.

A range of tailored initiatives, such as the CBE’s financial inclusion events, held six times a year since 2017, have played a crucial role in broadening access. These events have waived fees, eliminated minimum balance requirements, and targeted underserved populations, including women, youth, and persons with disabilities.

The report highlights that these initiatives have resulted in the issuance of 7.5 million prepaid cards, 2.5 million mobile wallets, and 7.5 million bank accounts.

One of the key initiatives is a program supporting smallholder farmers in collaboration with the UN World Food Programme. This effort integrates small farmers into the formal financial sector by providing tailored financial solutions that enhance their economic and social capabilities.

In addition, the CBE has partnered with the National Council for Women and the Agricultural Bank of Egypt to expand digital savings and lending groups aimed at increasing women’s financial inclusion. These groups promote savings, raise awareness of fintech applications, and encourage the adoption of digital financial services.

The financial inclusion drive is aligned with Egypt’s Decent Life initiative, launched in July 2021. This program focuses on improving living standards for rural populations, reaching 20 governorates, 52 centers, and 1,667 villages by expanding access to financial services and supporting underserved communities.

Since its launch, the program has seen the installation of 1,254 new ATMs, the opening of 651,900 bank accounts, and the issuance of 993,000 prepaid cards.

The CBE’s emphasis on financial inclusion has also had a significant impact on Egypt’s broader economic landscape. Between December 2015 and June 2024, financing for micro, small, and medium-sized enterprises grew by 388 percent. Microfinance portfolios in both banking and non-banking sectors have expanded by over 1,350 percent, thanks to CBE-backed initiatives.

In underserved areas, funding has increased substantially. Facilities directed toward the Delta region grew by 72 percent, while Upper Egypt saw a 59 percent rise in funding from December 2020 to June 2024. Financing for the industrial sector also rose by 61 percent during this period, reflecting targeted efforts to channel capital into job-creating sectors and reduce unemployment.

As of June 2024, Egypt’s total microfinance portfolio reached 93.2 billion Egyptian pounds ($1.8 billion).

This robust growth in financial inclusion underscores Egypt’s commitment to expanding economic opportunities, reducing poverty, and fostering inclusive development across the nation.


Pharmaceuticals and food sectors key focus of Saudi ministers’ Egypt trip

Updated 46 min 16 sec ago
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Pharmaceuticals and food sectors key focus of Saudi ministers’ Egypt trip

RIYADH: Boosting pharmaceutical ties was the centerpiece of a visit by leading Saudi ministers to Egypt as the two countries sought to enhance industrial cooperation and explore investment opportunities.

The Kingdom’s Minister of Industry Bandar Alkhorayef traveled to the north African country on Dec. 15, with a focus on boosting collaboration in the industrial and mining sectors while identifying mutual opportunities in areas such as food and pharmaceuticals, according to a statement. 

He was joined by Deputy Minister Khalil bin Salamah, Saudi Export-Import Bank CEO Saad Al-Khalb, and Saudi Export Development Authority CEO Abdulrahman bin Sulaiman Al-Thukair. 

During the visit, Alkhorayef met with senior Egyptian officials and major private sector leaders to highlight Saudi Arabia’s competitive investment environment, incentives for investors, and strategic industrial priorities, the Saudi Press Agency reported. 

The official visit aims to strengthen the countries’ strategic partnership. In 2023, Saudi Arabia’s non-oil exports to Egypt amounted to SR9.9 billion ($2.6 billion), while non-oil imports from Egypt totaled SR9.6 billion. 

A key highlight of the trip was a tour of Almarai’s “Beyti” factory in Beheira Governorate, where Alkhorayef reviewed its role in local community development and supply chain localization. He also visited several pharmaceutical facilities to gain insights into Egypt’s manufacturing expertise. 

Bin Salamah held bilateral talks with Mohamed Zaki El-Sewedy, chairman of Egypt’s Federation of Industries, with the discussions focused on encouraging the private sector to capitalize on available industrial investment opportunities across both countries.

The deputy minister also met with executives from leading pharmaceutical companies, including Minapharm, to discuss localizing medical industries in Saudi Arabia and exploring potential collaboration in biopharmaceutical manufacturing. 

He also held talks with officials from Eva Pharma around opportunities in generic pharmaceutical production and veterinary vaccines. 

Additionally, there were discussions with the chairman of Medical Union Pharma regarding the integration of active pharmaceutical ingredients in the Saudi market, with a focus on both chemical and biological components. 

Moreover, Bin Salamah met with the chairman of the British Egyptian Co. for General Development, also known as Galina, to explore potential investment opportunities in Saudi Arabia and discuss the growth of the frozen and packaged fruits and vegetables trade.

The meeting also emphasized leveraging Industry 4.0 technologies to boost productivity in both nations’ industrial sectors. 


Pakistan stocks cross 116,000 mark as interest rate cut expected today

Updated 55 min 23 sec ago
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Pakistan stocks cross 116,000 mark as interest rate cut expected today

  • Central bank has already slashed interest rates by 700 basis points in four consecutive meetings since June
  • Poll by Topline Securities shows 71 percent participants expect central bank to announce minimum rate cut of 200bps 

ISLAMABAD: The Pakistan Stock Exchange (PSX) smashed past the 116,000 mark during intraday trading on Monday on anticipation that the central bank will slash the interest rate at the monetary policy meeting today, analysts said.

The central bank has already slashed interest rates by 700 basis points (bps) in four consecutive meetings since June, bringing it to 15 percent.

According to a poll by Topline Securities published earlier this month, 71 percent of participants expect the central bank to announce a minimum rate cut of 200bps.

The benchmark KSE-100 index climbed 1,932.63 or 1.69 percent to reach an intraday high of 116,234.43 points at 2:58 p.m. from the previous close of 114,301.80. 

“Anticipation of a sharp interest rate cut together with strong liquidity with mutual funds is driving the market up,” Head of Equities at Intermarket Securities, Raza Jafri, told Arab News. “It is a broad-based increase, with only banks in the red today on fears of higher taxation.”

The upward surge was driven by the anticipation of a “sharp interest rate cut” by the State Bank, boosting economic growth, corporate profitability and strong liquidity in mutual funds fueled by increased investor confidence and higher savings rates.

Pakistani stocks have been performing significantly well this month, closing at record highs multiple times. 

“KSE 100 Index gained 4.83 percent on week-on-week basis making it eight consecutive positive closing, as expectation of interest rate cut in the upcoming monetary policy meeting kept the investor interest robust and continuous buying by mutual funds provided further stimulus to the market,” Topline said in a weekly market review on Friday.

Trade data released by the Pakistan Bureau of Statistics also supports positive investor sentiment as the trade deficit narrowed by 7.39 percent during the first five months (July-November) of the current fiscal year, standing at $8.651 billion, compared to $9.341 billion during the same period last year.

Exports rose by 12.57 percent to hit $13.69 billion, while imports increased by 3.90 percent to $22.342 billion during this period. November’s trade deficit narrowed even further, dropping by 18.60 percent year-on-year to $1.589 billion compared to $1.952 billion in November 2023.


Middle East holds highest growth potential for private capital in 2025: Report

Updated 16 December 2024
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Middle East holds highest growth potential for private capital in 2025: Report

  • Asset managers surveyed private equity and venture capital as the top investment opportunities
  • Survey was carried out on the sidelines of Apex Invest Abu Dhabi in November

RIYADH: The Middle East region is offering the highest growth potential for private capital in 2025, driven by government initiatives and sectoral reforms, according to a survey. 

The Apex Group, the London-based financial solutions provider behind the poll, said asset managers surveyed private equity and venture capital as the top investment opportunities in the Middle East.

As detailed in the survey, which was carried out on the sidelines of Apex Invest Abu Dhabi in November, 39 percent of the attendees shared bright prospects for private capital deployment in the region. 

A report released by Wamda this month revealed that startups in the Middle East and North Africa region raised $258 million in November, representing a 92 percent rise compared to the previous month. 

“The Middle East remains an attractive proposition for asset managers. Various government initiatives, private sector reforms, and strong capital inflows are driving investment into the region’s domestic markets,” said Christiane El Habre, regional managing director, Middle East at Apex Group.

“This is creating opportunities for asset managers who can allocate capital productively and create returns via active management strategies,” she also said. 

El Habre added that the survey results directly reflect the growing maturity of the asset management landscape in the Middle East region. 

Despite the optimistic outlook, attendees highlighted several challenges in achieving portfolio diversification goals, with 54 percent underlining access to quality assets as a key constraint. 

Some 21 percent of the attendees who took part in the survey said that market volatility is also a major factor that is impeding progress, while 13 percent opined regulatory constraints and capital-raising challenges as causes of concern. 

The survey report revealed that 30 percent of the poll participants considered the Asia-Pacific region as a good destination for private capital deployment, while 22 percent preferred North America. 

Europe, Africa, and South America were rated less in the survey for deployment of private capital due to various socioeconomic and geopolitical factors, said Apex Group. 

Some 88 percent of the survey panelists said that public equity and venture capital firms are increasingly engaged with portfolio companies to drive returns and safeguard impact. 

The Apex Invest Abu Dhabi event witnessed the participation of senior representatives from prominent regional asset managers, including Saudi Arabia’s Public Investment Fund, Mubadala Investment Co., and Abu Dhabi Investment Authority, as well as key members from family offices and investor institutions.