Mideast sets record in renewable energy capacity, Saudi Arabia reaches 2.6 GW: IRENA
Updated 28 March 2024
Arab News
RIYADH: Renewable energy capacity in the Middle East soared to a record high in 2023, with the addition of 5.1 gigawatts, marking a 16.6 percent increase from the previous year.
According to the latest data released by the International Renewable Energy Agency, this new addition brought the region’s total renewable energy capacity to 35.54 GW, with Saudi Arabia accounting for 2.68 GW.
The data showed that global green power capacity reached 3,870 GW in 2023, marking a 13.9 percent increase over the previous year. This represents the largest surge in sustainable energy capacity to date, with the addition of 473 GW.
Green sources constituted a record-breaking 86 percent of global power additions, primarily driven by substantial expansions in solar and wind energy.
Solar power alone contributed nearly three-quarters of renewable additions, totaling a record 346 GW, while an additional 116 GW of wind energy was incorporated, the report added.
Francesco La Camera, director general of IRENA, said: “Despite these unprecedented renewable additions in 2023, the world is still falling short of what is required to achieve the goal adopted at COP28 to triple installed renewable power capacity by 2030 to reach 11 TW.”
With one less year to meet the goal, he emphasized that the world now requires additions of approximately 1,050 GW each year for the remainder of this decade to align with the World Energy Transitions Outlook scenario and maintain a trajectory toward limiting global warming to 1.5 degrees Celsius.
The growth of sustainable energy is unevenly distributed globally, with Asia leading the expansion with a 473 GW increase, primarily propelled by China’s 63 percent surge to 297.6 GW. This highlights a notable discrepancy with other regions, particularly developing countries. While Africa saw some growth, it was modest at 4.6 percent, reaching 62 GW.
By the end of 2023, Camera said, renewable energy sources comprised 43 percent of the global installed power capacity.
“Yet, as we draw closer to a world in which renewable energy accounts for half of total capacity, many energy planning questions still need to be addressed to establish renewables as the most significant source of electricity generation - including in the context of grid flexibility and adaptation to variable renewable power,” he added.
Saudi Arabia sees record $41bn in inbound tourism spending as Vision 2030 projects come to life
Updated 5 sec ago
Dayan Abou Tine
RIYADH: Inbound tourism spending in Saudi Arabia surged to a record SR153.61 billion ($40.95 billion) in 2024, marking a 13.82 percent annual increase, according to data from the Saudi Central Bank.
The rise also pushed the Kingdom’s travel balance surplus to its highest annual level yet — SR49.78 billion — up 7.81 percent from the previous year. Outbound spending by Saudi residents rose 16.94 percent year on year, reaching SR103.84 billion.
In January, the Saudi Press Agency reported that the Kingdom welcomed 30 million international visitors in 2024, a 9.5 percent increase from the previous year. This influx of travelers is not merely transient, as they play a pivotal role in reshaping Saudi Arabia’s economy and global image.
According to the latest Ministry of Tourism report, which covered the third quarter of 2024, non-religious tourism now accounts for the majority of international travel, signaling a broader appeal and longer stays as visitors explore the nation’s cultural, entertainment, and business offerings.
Tourism’s direct and indirect contributions — spanning sectors from transport to hospitality — brought the Kingdom’s total economic impact from travel and tourism to SR498 billion in 2024, according to the World Travel and Tourism Council. This represents 12.45 percent of gross domestic product, up from 11.5 percent the preceding year.
As part of Vision 2030, Saudi Arabia is undergoing a rapid transformation that places tourism and international investment at the heart of its future.
Tourists gather at the Elephant Rock geological site near AlUla, Saudi Arabia. Shutterstock
Sweeping reforms, including 100 percent foreign ownership in key sectors, a streamlined investment law, and special economic zones, have made the Kingdom one of the most attractive destinations for global investors and travelers.
The Saudi government is not only making it easier to visit the Kingdom but is also actively promoting a wide range of offerings in the tourism sector.
Billions of dollars are being invested in a new era of high-end, culturally rich, and environmentally conscious destinations. Among them are the Red Sea Project, a luxury archipelago of sustainable resorts; NEOM’s Trojena, the Gulf’s first outdoor ski destination; and Diriyah, a historical landmark just outside Riyadh set to welcome 27 million visitors annually by 2030.
Cultural pillars such as AlUla, with its 200,000 years of history, and Jeddah’s Al-Balad Historic District, which is currently undergoing a major restoration, are also attracting global attention.
Mega-projects including Qiddiya, AMAALA, and Sindalah promise to deliver experiences ranging from world-class entertainment to luxury yachting.
Supporting this tourism boom is a rapid expansion in infrastructure. The Kingdom now boasts over 426,000 licensed hotel rooms, with an international hospitality chain presence that is expected to grow from 47 percent to 65 percent, according to Knight Frank. Brands including Accor, Hilton, and Marriott are all ramping up investments.
Accessibility is no longer a barrier, with Saudi Arabia’s eVisa platform allowing travelers from 66 countries — including the US, UK, and Germany, as well as Japan, Australia, and China — to apply for a one-year, multiple-entry permit.
According to a recent report by the ministry, tourists can stay up to 90 days per visit, with access granted for leisure, Umrah, business events such as the Interenational Meetings, Incentives, Conferences, and Exhibitions Summit, and visiting friends and family. Hajj remains under a separate, seasonal visa system due to religious considerations.
Additionally, the Kingdom’s strategic geographic location— within six hours’ flight time of 40 percent of the world’s population— along with its emphasis on sustainable, high-end tourism, positions the nation as an increasingly significant and rapidly growing destination in the global travel landscape.
Leisure and business travel take center stage
Saudi Arabia now offers over 426,000 licensed hotel rooms. Shutterstock
Saudi Arabia’s tourism sector is undergoing a noticeable transformation, with leisure and business travel now fueling much of the Kingdom’s inbound growth. While religious tourism continues to play a key role, the latest data shows that a broader, more diversified visitor profile is emerging.
By the third quarter of 2024, the Ministry of Tourism reported a clear shift in travel purposes: religious pilgrimages still accounted for 41 percent of inbound visits, but non-religious travel is gaining momentum.
Leisure tourism represented 24 percent of the total, followed by visits to friends and relatives at 22 percent, while business, education, and healthcare-related trips comprised the remainder.
This growing appetite for Saudi Arabia’s tourism experiences is drawing in travelers and unlocking billions in investment.
Private sector funding in the Kingdom’s tourism industry climbed to SR14.2 billion in 2024, up from SR12 billion the previous year, according to Tourism Minister Ahmed Al-Khateeb as reported by Bloomberg in January.
Roughly 40 percent of that capital came from foreign investors, signaling rising global confidence in Saudi Arabia’s ambitious tourism agenda.
Al-Khateeb highlighted that international investors are increasingly focusing on the Kingdom, particularly as other regions experience stagnation or slower growth. He explained that investors see Saudi Arabia’s ambitious tourism plans as a way to unlock long-untapped potential in a sector that had been largely inaccessible for decades.
The surge in investment aligns with the Kingdom’s broader push to become a global travel hub.
To support this ambition, Saudi Arabia aims to generate $80 billion in private investment by the start of the next decade, helping fuel Crown Prince Mohammed bin Salman’s Vision 2030 strategy to diversify the Kingdom’s economy beyond oil.
While Europe and the US currently lead the wave of foreign investment, Al-Khateeb noted that active discussions are underway with Asian partners as well — including China, South Korea, and Malaysia — who are exploring opportunities in areas such as hospitality, retail, and real estate.
Oil Updates — crude steadies as market awaits fresh US tariffs
Concerns remain on how fresh US tariffs will be implemented
Some analysts caution about bearish impact on oil prices from demand standpoint
Updated 02 April 2025
Reuters
SINGAPORE: Oil prices steadied in thin trading on Wednesday after falling in the previous session on concerns that new US tariffs, set to be unveiled at 11:00 p.m. Saud time, may deepen a global trade war that could limit crude demand.
Brent futures were unchanged at $74.49 a barrel by 9:22 a.m. Saudi time after slipping 0.4 percent on Tuesday. US West Texas Intermediate crude futures rose 3 cents to $71.23 after dropping 0.4 percent. Prices settled at their highest in five weeks on Monday.
The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details about the size and scope of the trade barriers.
“Oil prices increased nearly 2 percent in March but have remained steady since as markets await clarity on Trump’s universal tariff plans ahead of ‘Liberation Day.’ The thin trading volumes in the oil market indicate rising concerns about these tariffs, despite some positive demand signals from mainland China,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.
At 9:23 a.m. Saudi time, Brent trading volumes were at 13,936 lots for June, compared with 672,617 lots of open interest for the same month, ICE data on the LSEG pricing platform showed.
For weeks, Trump has touted April 2 as “Liberation Day,” which would bring new duties that could rattle the global trade system.
“The (tariff) announcement could impact prices either to the upside or the down, although the balance of risk lies to the downside, given that weaker-than-expected tariff measures are unlikely to drive a significant rally in Brent, while stronger-than-expected measures could trigger a substantial selloff,” BMI analysts said in a note.
The declines were offset by threats by Trump to impose secondary tariffs on Russian oil, and as he ramped up sanctions on Iran on Monday as part of his administration’s “maximum pressure” campaign to cut its exports.
“Should the tariff pressures prove successful for Trump and enable a Russia-Ukraine ceasefire, there is a scenario where these punitive measures could be short-lived, with tariffs potentially bullish for crude oil and bearish for products,” said Rystad Energy’s Vice President of commodity markets, Janiv Shah.
“So far, oil prices have remained muted, awaiting an official reaction from major importing nations on the newly proposed tariffs.”
US oil and fuel inventories painted a mixed picture about supply and demand in the world’s biggest producer and consumer.
US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources, citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks fell by 11,000 barrels, the sources said.
Official US crude oil inventory data from the Energy Information Administration are due later on Wednesday.
Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles
Updated 01 April 2025
Reem Walid
RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.
The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.
South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.
The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.
In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”
Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”
Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.
Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.
Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.
Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.
Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”
Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”
Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.
“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.
“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.
Saudi MSME lending hits $94bn driven by government-backed reforms
Updated 01 April 2025
Dayan Abou Tine
RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data.
The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent.
MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector.
In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion.
Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share.
Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period.
The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent.
To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at.
Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending.
The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding.
In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs.
Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification.
According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide.
The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year.
Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir.
This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector.
The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth.
New laws simplifying Saudi business registration to take effect
Updated 01 April 2025
Reem Walid
RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3.
Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported.
The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added.
The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce.
The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030.
Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”
He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.”
Existing subsidiary registers will have a five-year grace period to comply with the new regulations.
Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits.
The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities.
Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names.
The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment.
In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030.
