Saudi Arabia advances green energy goals with new renewable projects

Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the NIDLP annual ceremony, explained that the program acquired five new renewable energy projects to ensure reasonable costs.
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Updated 26 December 2023
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Saudi Arabia advances green energy goals with new renewable projects

RIYADH: Saudi Arabia is on track to access green energy at competitive prices thanks to agreements signed by the Kingdom’s National Industrial Development and Logistics Program.  

According to Al-Ekhbariya, Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the NIDLP annual ceremony, explained that the program acquired five new renewable energy projects to ensure reasonable costs.  

This aligns with the Kingdom’s goal of deriving half of its energy mix from renewable sources by 2030.  

“NIDLP signed agreements to purchase five new renewable energy projects that will produce energy at competitive prices,” Alkhorayef said.  

He added: “NIDLP program built integrated equipment in the ministries capable of implementing projects.” 

The minister said the program adopted the first natural gas storage project in the Kingdom. 

Additionally, it contributed to the crown prince’s launch of four economic zones and 59 logistical plans to develop infrastructure, Alkhorayef highlighted. 

The minister noted that the NIDLP program has significantly contributed about 35 percent of the non-oil gross domestic product, making up to SR345 billion ($92 billion). 

Furthermore, NIDLP announced investments worth SR206 billion in non-oil export activities and SR97 billion in nongovernmental funds, Al-Eqtisadiah reported. 

Lauding Saudi Arabia’s outstanding industrial achievements, Alkhorayef highlighted the mining sector’s record revenues of over SR1.45 billion for 2023. 

He highlighted that the Industrial Development Fund was able to fund 119 projects in 2023, providing finance of SR12.7 billion and investments exceeding SR51 billion, as part of the Kingdom’s ambitious aspirations to build 500,000 electric cars by 2030. 

The minister also noted: “The nation’s young men and women are a milestone in the maturity of government systems and are capable of turning dreams into reality.” 

He added: “The maturity of the executive bodies is the real guarantee of the sustainability of the sectors and the achievement of the nation’s aspirations.” 

Also speaking at the same event, Saudi Arabia’s Minister of Transport and Logistics Sector Saleh Al-Jasser reiterated: “In cooperation with NIDLP, we are continuing to achieve the national transport strategy.” 

In addition, the CEO of NIDLP, Suliman Al-Mazroua — who was also present at the event — shed light on the program’s executive performance during 2023. 

“The program’s executive performance increased to 87 percent and by more than 17 degrees since the beginning of the year,” Al-Mazroua disclosed. 

He also tackled exports, saying: “The Kingdom’s non-oil exports achieved historic numbers that had never been achieved before.” 

As for job creation in 2023, the CEO projected it would be the highest standing at more than 200,000 jobs. 

The NIDLP’s objective is to transform the Kingdom into a leading industrial powerhouse and a global logistics hub by maximizing the value of its mining and energy sectors while unlocking the full potential of additional local resources.


Italian firm Webuild secures $600m contract as Diriyah project gains pace

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Italian firm Webuild secures $600m contract as Diriyah project gains pace

JEDDAH: Saudi Arabia’s Diriyah Square project has awarded a $600 million contract to Italian construction firm Webuild, marking a major step forward for the Kingdom’s heritage-driven development.

The contract, awarded to a subsidiary of the Italian group — Salini Saudi Arabia — covers the construction of 70 buildings and public spaces within the mixed-use development, which forms part of the broader Diriyah master plan. 

With this latest award, Webuild’s total involvement in the sit, known as the City of Earth, now stands at roughly $2 billion, the company said in a statement. 

Diriyah Square is a central component of Diriyah Co.’s strategy to transform the historic district into a commercial, residential, and cultural hub. 

The project is one of five giga-projects backed by Saudi Arabia’s Public Investment Fund, aimed at reshaping the Kingdom’s economy and tourism offering under the Vision 2030 plan. 

Diriyah will contribute approximately SR70 billion ($18.6 billion) directly to the Kingdom’s gross domestic product, create nearly 180,000 jobs and will be home to an estimated 100,000 people. 

Diriyah Co.’s group CEO Jerry Inzerillo said: “Diriyah Square is one of our most exciting, anticipated and prestigious districts, and we are extremely pleased to have signed with Salini to deliver it, bringing their immense global experience to the table.”

He added that this marks another important milestone in their development journey, paving the way for Diriyah Square’s retail spaces to welcome a diverse range of visitors — from nearby residential communities and surrounding office hubs to the millions who visit each year.

The contract covers Package 3 Finishing and mechanical, electrical, and plumbing, delivering a pedestrian-friendly environment in traditional Najdi style across 365,000 sq. meters. Webuild is also working on the 10,500-space underground parking facility, awarded in 2022 and currently 55 percent complete, alongside structural packages 3, 6, and 7. 

According to Diriyah Co., the project aims to create a retail district showcasing 400 brands across retail, leisure, and dining.  

In a statement released by Webuild, CEO Pietro Salini said: “We are proud to be able to contribute to a project of such symbolic and strategic value for Saudi Arabia. Our presence in the Kingdom will be further strengthened by work that will have a positive impact on the area as well as the local community.” 

He added that the company has operated in Saudi Arabia since 1966 and has completed more than 90 projects.

“We continue to support the country to develop some of the most challenging infrastructure projects in the world, especially in sectors such as civil buildings, sustainable mobility, and desalination,” Salini said. 


BYD plans major Saudi expansion following Tesla’s market entry

Updated 20 min 39 sec ago
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BYD plans major Saudi expansion following Tesla’s market entry

RIYADH: Chinese electric vehicle giant BYD Co. is aiming to triple its presence in Saudi Arabia after Tesla Inc.’s recent market entry, the firm’s managing director for the Kingdom has announced.

Currently operating three showrooms, BYD plans to expand to 10 locations by late 2026, according to Jerome Saigot. 

The expansion comes after Tesla entered the Saudi market in April with a Riyadh showroom, joining BYD and fellow Chinese firm Geely.

The development aligns with Saudi Arabia’s broader strategy to establish itself as a regional EV hub, targeting 30 percent EV adoption by 2030 as part of its Vision 2030 economic diversification plan.

“Saudi is a complex market. You need to go fast. You need to think big,” Saigot said in an interview with Bloomberg, adding: “We are not here to stay at 5 (thousand) or 10,000 cars a year.” 

Saudi Arabia’s Public Investment Fund has been aggressively investing in the EV sector, backing Lucid Motors, launching its brand, Ceer, and supporting charging infrastructure development. 

However, EVs still account for just over 1 percent of total car sales, as high costs, limited charging infrastructure, and extreme weather remain challenges, Bloomberg reported, citing data from PwC.

Saigot told Bloomberg that Tesla’s presence in the Kingdom was a positive development, helping to boost consumer awareness of EVs.

“The more Tesla communicates on marketing, the better it is for us,” said Saigot, who started at BYD in April after serving in previous roles at Nissan Motor Co. and Great Wall Motor Co.

BYD has been closing the gap with Tesla globally, outselling the US automaker in Europe for the first time in April. 

The Kingdom’s push toward electric mobility is gaining momentum, with Tesla’s recent market entry seen as a potential catalyst for faster adoption. Alessandro Tricamo, partner at Oliver Wyman, told Arab News in an interview earlier this month that nearly half of Saudis are now considering an EV purchase. 

“Tesla’s entry into the Saudi market is potentially a significant win-win situation,” he said, pointing to the brand’s appeal in a car-centric market and the company’s need to expand beyond declining Western sales. 

Also in an interview earlier this month, Taline Vahanian of Marsh UAE warned of risks for the sector, including battery degradation in extreme heat and costly insurance premiums, which could slow adoption.


Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

Updated 14 July 2025
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Saudi PIF rises to 4th among sovereign wealth funds as assets surpass $1tn 

RIYADH: Saudi Arabia’s Public Investment Fund has rise one place to 4th globally among sovereign wealth bodies, with assets surpassing $1 trillion, according to Global SWF’s July rankings.

PIF now ranks behind only Norway’s Government Pension Fund Global and two Chinese entities — the State Administration of Foreign Exchange and the China Investment Corporation — and surpasses the Abu Dhabi Investment Authority and the Kuwait Investment Authority.

The new ranking underscores PIF’s growing influence in global capital markets. 

Crown Prince Mohammed bin Salman has mandated the fund to grow its assets to $2 trillion by 2030, while generating long-term returns and supporting economic diversification. 

PIF’s assets under management climbed to $1.15 trillion in 2024, up from approximately $925 billion the previous year. However, net profit declined during the period due to rising operational costs, interest expenses, and asset write-downs linked to project delays and revisions, according to Global SWF. 

In response, the fund has shifted its strategy and is now prioritizing liquidity through short-term sukuk and commercial paper, while focusing on scalable, revenue-generating assets over high-cost mega-projects. This repositioning also includes increased investments in AI infrastructure, ETF platforms, and co-investments with global asset managers. 

Underscoring its international ambitions, PIF has invested about $200 million in a prime Manhattan real estate project with Related Companies, Bloomberg reported in July.

The fund plans to acquire a two-thirds stake in the 625 Madison Avenue site, where a 1,200-foot tower is under consideration, just steps from Central Park. 

The move builds on PIF’s earlier ties with Related, including a 2020 debt investment, and reflects its appetite for high-profile, long-horizon real estate in strategic global cities. 

Internationally, the fund holds stakes in prominent companies such as Lucid Motors, Nintendo, Uber, and BlackRock, and remains active across sectors including technology, mobility, and renewable energy, as well as gaming and sports. 

According to Global SWF, PIF is moving away from a strategy centered on rapid capital deployment, toward a more disciplined approach focused on financial sustainability, cost control, and delivering measurable returns. 


Egypt approves largest economic support package for SMEs worth $100.8m

Updated 14 July 2025
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Egypt approves largest economic support package for SMEs worth $100.8m

RIYADH: Entrepreneurs in Egypt’s priority sectors will soon gain access to affordable financing, as the 2025/2026 state budget earmarks 5 billion Egyptian pounds ($100.8 million) to support micro, small, and medium-sized enterprises.

This partnership between the North African country’s Ministry of Finance and the Micro, Small, and Medium Enterprises Development Agency, which accounts for the largest economic support in the new budget, represents a significant step in bolstering the private sector and productive industries, according to a statement.

This move supports financial policies that boost private sector activity and promote entrepreneurship, aiming for financial sustainability while enhancing MSMEDA’s contribution to business growth nationwide.

It also aligns with recent data showing that startups across the Middle East and North Africa raised $289 million through 44 deals in May, a 25 percent increase from April and a 2 percent rise year-on-year. Egypt led regional fundraising with $125 million, driven by Nawy’s $75 million round alongside seven other deals totaling $50 million.

The newly released ministry statement said the money “will contribute to providing easy financing for young entrepreneurs, targeting priority sectors more closely.”

It added: “This comes as part of a new phase of strong and effective cooperation with the agency, aiming to achieve financial sustainability for the agency to drive economic growth.”

The statement further revealed that Egypt’s Finance Minister Ahmed Kouchouk noted that an initial agreement with MSMEDA has been reached to fund initiatives that support tax relief beneficiaries, promote entrepreneurship, and boost local manufacturing, as well as empower low-income households and advance export-focused projects.

Kouchouk added that this fiscal year, the initial group of businesses enrolling in the simplified and unified tax system would receive access to preferential, low-cost financing.

Basel Rahmi, CEO of MSMEDA, commended the Ministry of Finance’s efforts to back emerging businesses and boost private-sector expansion.

Rahmi praised the minister’s proactive vision, noting it would open doors for empowering young entrepreneurs economically.

In June, a statement issued by the Ministerial Group for Entrepreneurship indicated that Egypt’s startup ecosystem saw notable progress in securing venture capital and debt financing in the first five months of the year, with tracked deals totaling $228 million since January.

The statement further revealed at the time that 16 deals were completed between January and May, with 11 of them publicly disclosing investments amounting to $156 million. These investments represented a 130 percent rise compared to the volume during the same period last year.


Oil Updates — prices edge up, investors eye Trump statement on Russia

Updated 14 July 2025
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Oil Updates — prices edge up, investors eye Trump statement on Russia

SINGAPORE: Oil prices nudged higher on Monday, adding to gains of more than 2 percent from Friday, as investors eyed further US sanctions on Russia that may affect global supplies, but a ramp-up in Saudi output and ongoing tariff uncertainty limited gains.

Brent crude futures rose 21 cents, or 0.3 percent, to $70.57 a barrel by 09:51 a.m. Saudi time, extending a 2.51 percent gain on Friday. US West Texas Intermediate crude futures climbed 20 cents, 0.3 percent, to $68.65, after settling 2.82 percent higher in the previous session.

US President Donald Trump said on Sunday that he will send Patriot air defence missiles to Ukraine. He is due to make a “major statement” on Russia on Monday.

Trump has expressed frustration with Russian President Vladimir Putin due to the lack of progress in ending the war in Ukraine and Russia’s intensifying bombardment of Ukrainian cities.

In a bid to pressure Moscow into good-faith peace negotiations with Ukraine, a bipartisan US bill that would hit Russia with sanctions gained momentum last week in Congress, but it still awaits support from Trump.

EU envoys are on the verge of agreeing an 18th package of sanctions against Russia that would include a lower price cap on Russian oil, four EU sources said after a Sunday meeting.

Last week, Brent rose 3 percent, while WTI had a weekly gain of around 2.2 percent, after the International Energy Agency said the global oil market may be tighter than it appears, with demand supported by peak summer refinery runs to meet travel and power generation.

However, ANZ analysts said price gains were limited by data showing Saudi Arabia lifted oil output above its quota under the Organization of the Petroleum Exporting Countries and allies' supply agreement.

The IEA said Saudi Arabia exceeded its oil output target for June by 430,000 barrels per day to reach 9.8 million bpd, compared with the Kingdom’s implied OPEC+ target of 9.37 million bpd.

Saudi Arabia’s energy ministry said on Friday that it had been fully compliant with its voluntary OPEC+ output target, adding that Saudi-marketed crude supply in June was 9.352 million bpd, in line with the agreed quota.

China’s June oil imports increased 7.4 percent to 49.89 million tonnes from a year earlier, equivalent to 12.14 million barrels per day, reaching the highest daily rate since August in 2023, according to customs data released on Monday.

China is likely to continue stockpiling, but with storage at 95 percent of the peak inventory build from 2020, these inventories are likely to emerge in “visible” Western market locations that are crucial for price formation, exerting downward pressure on prices, JP Morgan’s research team said in a client note.

Investors are also eyeing the outcome of US tariff talks with key trading partners that could impact global economic growth and fuel demand.