Saudi Arabia’s on the frontline of battle against climate change

Events such as MENA Climate Week in Riyadh in 2023, the UAE’s COP28 in 2023, and Egypt’s COP27 in 2022 underscore the region’s commitment to addressing this pressing issue to safeguard their future. (SPA)
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Updated 12 May 2024
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Saudi Arabia’s on the frontline of battle against climate change

  • Middle Eastern countries face unique challenges that compound the urgency of tackling this environmental crisis

RIYADH: As temperatures continue to rise worldwide, the Arab region is on the frontline of the battle against climate change.

In the global race to achieve net-zero, the Middle Eastern countries face unique challenges that compound the urgency of tackling this environmental crisis to safeguard their future.

The Gulf region is one of the areas most heavily impacted by climate change, primarily due to the already elevated temperatures that have exceeded the global average.

In recent years, the Arab world has heightened its focus on the ramifications of global warming, particularly its economic impacts, to avert the detrimental consequences.

Events such as MENA Climate Week in Riyadh in 2023, the UAE’s COP28 in 2023, and Egypt’s COP27 in 2022 underscore the region’s commitment to addressing this pressing issue.

Speaking to Arab News, Sal Jafar, CEO of ESG MENA, underscored these efforts, stating: “I have observed firsthand the transformative strides the GCC countries are making in the realm of energy transition and climate change efforts.”

 He added: “This region, historically reliant on hydrocarbon economies, is now at the forefront of a pivotal shift toward sustainability and environmental stewardship, underpinned by an ESG framework.”

The intricate relationship between atmospheric changes and financial growth in these nations underscores the necessity of adopting sustainable development practices.

A recent report by the Arab Monetary Fund states that by the year 2050, the region may experience a significant reduction in water availability and agricultural productivity.

This decline, which is connected to climate-related water scarcity, could result in economic losses equivalent to 14 percent of the area’s gross domestic product.

Saudi Arabia, a pivotal player in the Middle East and a significant oil producer, embodies the region’s complexities and potential for transformation.

The Kingdom has been keen to amplify its efforts in energy transition for at least a decade, Yousef Al-Shammari, the CEO of CMarkits, a UK-based energy research consultancy firm, told Arab News.

These measures began with the launch of the King Abdullah City for Atomic and Renewable Energy in 2013, he noted, saying: “At that time, the aim was to minimize crude oil consumption by utilizing alternative sources of energy. Especially because the local consumption of crude is projected to keep rising because of national consumption of electricity and, of course, road transport demand.” 

This region, historically reliant on hydrocarbon economies, is now at the forefront of a pivotal shift toward sustainability and environmental stewardship, underpinned by an ESG framework.

Sal Jafar, CEO of ESG MENA

Crude oil demand is projected to rise to as high as 8 million barrels per day, while the Kingdom produces 10 million barrels. This will inevitably lead to an “economic security risk” and result in the nation’s first motive of ensuring energy efficiency, Al-Shammari said.

However, with rising concerns about escalating temperatures and environmental sustainability, the nation launched its Vision 2030 in 2016 to position itself as a global leader in clean energy production and divert its economy from oil dependency.

The road to net-zero

The Kingdom has embarked on various initiatives to reduce its carbon footprint and diversify its economy beyond oil.

Mitigative efforts include ambitious targets of 44 million tonnes of carbon dioxide captured annually by 2035 and 2 million tonnes of CO2 seized and utilized daily to produce glycol, urea and green methanol, as well as clean fuels, according to the 14th IEA-IEF-OPEC Symposium on Energy Outlooks.

This is being made possible through the circular carbon initiative, which was introduced during the Kingdom’s presidency of the G20, the CEO highlighted, saying: “The circular carbon initiative that includes removal reduce, reuse, and recycle,” he explained, adding: “Saudi Aramco is pursuing a very ambitious program on that line. I think there is one major project, which is starting in 2027, which will be the world’s largest CO2 capture project.”

 The facility, which Aramco is said to play a significant role in, seeks to capture 9 million tonnes per annum of CO2 by 2027, with the aim of increasing its capacity to 44 million tonnes per annum by 2035, Al-Shammari outlined.

In October of 2022, the  Kingdom’s sovereign wealth fund launched its regional Voluntary Carbon Market company during the sixth edition of the Future Investment Initiative in Riyadh.

This move allowed for tradable CO2 shares to be launched on an exchange, with major players in the Saudi energy field, like Aramco and SABIC, taking part.

The idea of the VCM is to allow companies to pay to compensate for their CO2 emissions. Additionally, the market’s voluntary nature presents a greater chance for success than compulsory sectors implemented in other regions, Al-Shammari outlined.

He said: “It’s voluntary, which means it can have a bigger impact than compulsory carbon markets, which we have seen in Europe, which did not really lead to any carbon reductions. The idea is, by being voluntary, it essentially enables companies to make economic sense of it. So when you have an economic return by having these investments in carbon markets, that would pay off the cost of capturing carbon. So somehow, it encourages producers to minimize their carbon emissions.” He added: “There is so much research and literature that has been done on that and the optimism about the
voluntary market is so huge and encouraging producers to minimize emissions compared to the compulsory markets.”

Greening the world

Equipped with a strategic location at the crossroad of three continents, the Kingdom is well positioned to lead in renewable energy exports globally.

Two ambitious projects outlined in the Symposium on Energy Outlooks include exporting 150,000 tonnes of clean ammonia globally and building the world’s largest green hydrogen project in NEOM.

Therefore, the nation’s location essentially allows it to export its potentially massive renewables supply east or west, Al-Shammari highlighted.

As European countries look to produce and import green hydrogen, Saudi Arabia will remain the continent’s supplier “for the foreseeable future,” he outlined.

He said: “As a part of the decarbonization plans, if you want to produce green hydrogen in Germany, it’s going to cost you $5 a kilogram and you’re going to produce it in Saudi Arabia, it’s going to cost you between $1 and $2 a kg.”

He added: “In the meantime, for the foreseeable future, Germany, which is Europe’s largest economy, will be dependent on and will need to import green hydrogen from cheap places like Saudi Arabia.”

Similarly, Saudi energy giant ACWA Power currently holds the world’s most extensive green hydrogen storage unit, with 1.2 million tonnes of ammonia produced per annum.

The company can “easily” import and export this large sum from its site in the northwest region of the Kingdom to Europe.

These efforts are allowing the country to shift its global image from a crude oil exporter to a major player in all energy fields.


Oil Updates — prices ease as market assesses Middle East tension

Updated 7 sec ago
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Oil Updates — prices ease as market assesses Middle East tension

SINGAPORE: Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter’s nuclear-related activity.

Brent crude futures were down 49 cents, or 0.7 percent, to $69.28 a barrel at 9:30 a.m. Saudi time, while US West Texas Intermediate crude was 41 cents, or 0.6 percent, lower at $67.74 a barrel.

A day earlier, both Brent and WTI surged more than 4 percent to their highest since early April.

US President Donald Trump said the US was moving personnel because the Middle East “could be a dangerous place.” He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful.

Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.

“Some of the surge in oil prices that took Brent above $70 per barrel was overdone. There was no specific threat identified by the US on an Iranian attack,” said Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank Australia.

Response from Iran is only contingent on US escalation, Dhar said.

“A pull back (in price) makes sense, but a geopolitical premium that keeps Brent above $65 per barrel will likely persist until further clarity on US-Iran nuclear talks is revealed,” he added.

The US is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources.

Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries.

Military dependents can also leave Bahrain, a US official said.

Prices weakened having hit key technical resistance levels during Wednesday’s rally, plus some market participants are betting on Sunday’s US-Iran meeting resulting in reduced tension, said OANDA senior market analyst Kelvin Wong.

Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran’s nuclear-related activity including uranium enrichment.

Iran’s Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict.

US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran’s response to a US proposal for a deal.

Separately, US crude inventories fell 3.6 million barrels to 432.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a draw of 2 million barrels. 


Saudi Arabia adds MEDEX service to Jeddah Port, linking 12 global hubs

Updated 11 June 2025
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Saudi Arabia adds MEDEX service to Jeddah Port, linking 12 global hubs

  • New service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE
  • It also connects to Karachi in Pakistan, and Colombo in Sri Lanka

RIYADH: Saudi Arabia has expanded its maritime connectivity with the addition of the MEDEX shipping service at Jeddah Islamic Port, linking the Kingdom to 12 regional and international ports. 

Operated by global logistics firm CMA CGM, the new service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE, Karachi in Pakistan, and Colombo in Sri Lanka, according to a release by the Saudi Ports Authority, or Mawani. 

The move is part of Mawani’s broader efforts to improve operational efficiency at Jeddah Islamic Port and raise Saudi Arabia’s standing in global port performance rankings. 

It also supports the Kingdom’s National Logistics Strategy, which aims to increase the sector’s contribution to gross domestic product from 6 percent to 10 percent by 2030, positioning Saudi Arabia as a strategic logistics hub connecting three continents.

“This service enhances the port’s competitive advantage, facilitates global trade, opens new business horizons, and supports national exports,” Mawani said.

Jeddah Islamic Port currently features 62 multi-purpose berths, a bonded and re-export logistics area, several specialized terminals, and advanced cargo-handling equipment. Shutterstock 

The MEDEX service is the 19th shipping line added to Jeddah Islamic Port since the beginning of 2025, reinforcing Saudi Arabia’s commitment to improving regional and international connectivity. 

With a capacity of up to 10,000 twenty-foot equivalent units, the new service also links Jeddah to Mundra and Nhava Sheva in India, Piraeus in Greece, Malta, Genoa in Italy, Fos in France, and Barcelona and Valencia in Spain.

Headquartered in Marseille, CMA CGM Group operates in 177 countries and is the world’s third-largest shipping company. It serves more than 420 ports across five continents with a fleet of over 650 vessels. 

The new service aims to boost domestic import and export activity, supporting Saudi Arabia’s broader objective of establishing itself as a global trade hub. 

Jeddah Islamic Port currently features 62 multi-purpose berths, a bonded and re-export logistics area, several specialized terminals, and advanced cargo-handling equipment. It also houses two general cargo terminals, two ship repair docks, and a dedicated marine services zone. The port’s total handling capacity reaches 130 million tonnes annually. 

Saudi Arabia climbed to 15th place globally in container throughput rankings in 2024, underlining its growing role as a maritime logistics powerhouse, according to Lloyd’s List, a UK-based shipping industry journal. 

The report said Jeddah Islamic Port advanced to 32nd place globally, up from 41st in 2023, after handling 5.58 million containers last year — a 12.6 percent increase from the previous year.


Closing Bell: Saudi main index holds steady at 11,005

Updated 11 June 2025
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Closing Bell: Saudi main index holds steady at 11,005

  • Parallel market Nomu shed 84.03 points to close at 27,223.71
  • MSCI Tadawul Index declined by 0.07 percent to end at 1,405.46

RIYADH: Saudi Arabia’s Tadawul All Share Index gained 0.49 points on Wednesday, closing at 11,005.02.

The total trading turnover of the benchmark index was SR5.60 billion ($1.49 billion), with 149 of the listed stocks advancing and 89 declining.

The Kingdom’s parallel market Nomu, however, shed 84.03 points to close at 27,223.71.

The MSCI Tadawul Index also declined by 0.07 percent to 1,405.46. 

Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, was the best-performing stock on the main market, as the company’s share price advanced by 9.93 percent to SR19.70. 

Miahona Co. also saw its share price increase by 6.09 percent to SR24.38.

The stock price of Americana Restaurants International PLC advanced 5.74 percent to SR2.21. 

Conversely, the share price of Elm Co. declined by 6.66 percent to SR959.20. 

The top gainer on Nomu was Meyar Co., whose share price grew 20.74 percent to SR65.20.

In the parallel market, Knowledge Net Co. also saw its stock price rise by 10 percent to SR34.10. 

The share price of Anmat Technology for Trading Co., which debuted on the Kingdom’s parallel market, climbed by 4.74 percent to SR9.95. 

On Tuesday, Saudi Arabia’s main market also witnessed three negotiated deals worth SR23.3 million. 

The negotiated deals include ACWA Power’s SR12.59 million, followed by Ades Holding Co.’s SR5.74 million, and Saudi Kayan Petrochemical Co.’s SR5 million. 

A negotiated deal indicates the purchase of a stock based on an agreement between buyers and sellers, apart from the market price.

These agreements are executed under the control of Tadawul and in accordance with capital market laws and regulations. 

The share price of ACWA Power declined by 5.34 percent to SR255.40. 

Ades Holding Co. saw its share price drop by 0.74 percent to SR13.48. 

The stock price of Saudi Kayan Petrochemical Co. edged up by 0.40 percent to SR4.96. 


Saudi Arabia’s ACWA Power plans $5bn investment deal with Uzbekistan 

Updated 11 June 2025
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Saudi Arabia’s ACWA Power plans $5bn investment deal with Uzbekistan 

  • Uzbekistan to localize production of wind turbine components
  • It will begin producing green hydrogen this month

RIYADH: Saudi utility giant ACWA Power is planning to invest $5 billion in Uzbekistan, affirming its status as the leading foreign investor in the Central Asian nation’s energy sector, according to a top official. 

Speaking at the Tashkent International Investment Forum, Soumendra Rout, ACWA Power’s country head for Uzbekistan, said that this planned $5 billion deal is a part of the company’s broader strategy aimed at increasing its total commitments in the country to $15 billion, UZ Daily reported. 

Being the largest foreign player in Uzbekistan’s energy sector, ACWA Power has already implemented 19 projects in the country worth a combined value of $5 billion. 

Out of these 19 projects, eight are focused on renewable energy, as Uzbekistan aims to generate 40 percent of its electricity from clean sources by the end of this decade.

“We are not going to stop here. Our objective is to expand our investments. During this forum, we plan to sign another agreement with the government of Uzbekistan worth $5 billion,” said Rout.

During the forum, Rout also emphasized the importance of Islamic finance instruments in ensuring sustainable economic development, particularly among small and medium-sized enterprises. 

He added that Shariah-compliant financing mechanisms are capable of offering more effective support to SMEs compared to traditional financing tools. 

“We are ready to share our experience with Uzbekistan and contribute to building a more inclusive financial system,” said Rout. 

During the forum, Abid Malik, president of ACWA Power for Central Asia, announced that Uzbekistan is all set to localize the production of wind turbine components, including blades and turbines. 

Malik added that ACWA Power is collaborating closely with suppliers and seeks to provide technical support to local enterprises working on renewable projects in Uzbekistan. 

As part of a 200-megawatt wind power project currently underway in Karakalpakstan, ACWA Power has tasked its turbine supplier with establishing local manufacturing operations in Uzbekistan. 

“Our supplier is planning to begin production of wind turbines and blades within the country in the near future,” added Malik. 

He further said that Uzbekistan will begin producing green hydrogen this month, with an annual production capacity of 3,000 tonnes. 

“We believe this will elevate Uzbekistan’s position on the global green hydrogen map,” said Malik. 

In 2023, Shavkat Mirziyoyev, president of Uzbekistan, launched a pilot green hydrogen facility in the Tashkent Region in cooperation with ACWA Power. 

The $88 million project is being implemented in two phases, with production from the first phase expected to begin this month.

The production of green hydrogen aligns with Uzbekistan’s goal to achieve 20 gigawatts of clean energy capacity by 2030. 

The country is also prioritizing the expansion of solar, wind, and hydroelectric energy, leveraging its natural resources to decrease reliance on fossil fuels. 

In April, ACWA Power commenced commercial operations at two major wind power plants in Uzbekistan.

In December, the company also launched three renewable initiatives in Uzbekistan, including wind, solar, and battery storage facilities. 

These undertakings include the Bash and Dzhankeldy Wind Power Plants, with a total capacity of 1,000 megawatts and a transmission line.

Additionally, there are the Samarkand 1 and 2 solar projects, which have a combined capacity of 1,000 MW of solar power, along with a 1,000 MWh battery energy storage system. The Tashkent BESS Project has a capacity of 500 MWh. 


Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn 

Updated 11 June 2025
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Saudi e-commerce sales via Mada cards jump 57% in April to reach $6.2bn 

  • Online transactions through Mada exceeded 132 million for the month
  • Total value of POS purchases at physical retail outlets slipped to SR52.22 billion

RIYADH: Saudi Arabia’s e-commerce sales using Mada cards increased by 57 percent in April compared to the same month last year, hitting SR23.27 billion ($6.2 billion). 

Data by the Saudi Central Bank, also known as SAMA, shows online transactions through Mada exceeded 132 million for the month, up 40.75 percent year on year, reflecting a substantial increase in consumers shopping via websites and mobile apps. 

These figures include purchases made online using linked debit cards and e-wallets, but they do not account for credit card transactions processed through international networks such as Visa or Mastercard. 

Mada, formerly known as Saudi Payment Network, is the Kingdom’s national electronic payment system, connecting all ATMs and point-of-sale terminals to a central payments switch. 

It enables debit and prepaid card services for millions of Saudis, allowing them to pay both in stores and online using funds directly from bank accounts. Importantly, Mada transactions utilize near-field communication technology for secure, contactless payments, meaning shoppers can simply tap their card or smartphone at terminals for instant checkout. 

Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. Shutterstock

This system has become a cornerstone of Saudi Arabia’s push toward a cashless economy, ensuring fast and secure transactions at physical retail locations and on e-commerce platforms. The accelerating uptake of Mada-enabled digital payments highlights growing consumer trust in online shopping and the success of national efforts to modernize the payments ecosystem. 

In-store sales plateau as online spending soars 

Despite the e-commerce boom, in-store point-of-sale transactions showed contrasting trends in April. The total value of POS purchases at physical retail outlets slipped to SR52.22 billion, marking a 1.38 percent decline year on year according to SAMA data. 

This slight drop in sales comes even as the number of POS transactions climbed by around 11.6 percent to 891.5 million over the same period. In other words, Saudi consumers made significantly more card payments in person than a year ago, but were spending slightly less per transaction on average. 

SAMA’s figures indicate over 2 million POS terminals are now deployed nationwide to facilitate card payments — a network 16.37 percent larger than a year ago, reflecting the Kingdom’s drive to expand electronic payment acceptance among businesses large and small. 

This divergence — higher transaction counts but lower total POS value — suggests a behavioral shift as digital payments become frequent for everyday purchases. With contactless “tap-and-go” cards and mobile wallets now the norm, consumers are using cards for smaller, frequent buys like groceries or coffee. 

This has driven up transaction volumes while curbing the average ticket size of each sale. Indeed, nearly all card swipes are now contactless; about 94 percent of in-store card transactions in Saudi Arabia are made via NFC, whether through a physical card, smartphone, or smartwatch, according to SAMA. 

The convenience of tap-to-pay has encouraged people to rely less on cash even for low-value items, contributing to the surge in POS transaction counts. 

Categories like food & beverages and dining continue to dominate physical sale. File/SPA

Another factor influencing the year-on-year comparison is the timing of Ramadan and Eid shopping. In 2024, the holy month of Ramadan and the Eid Al-Fitr festival fell largely in April, boosting retail spending in that period. 

In contrast, Ramadan in 2025 fell mainly in March, pushing POS sales to about SR66 billion that month. As a result, April 2025 didn’t see the same holiday-related boost, which likely played a role in the softer in-store sales figures, even though the overall trend in electronic transactions continues to grow. 

Categories like food & beverages and dining — which according to SAMA data were the top two POS spending sectors in April at around SR7.7 billion each — continue to dominate physical sale, but their growth may have been tempered without the late-Ramadan rush present a year ago. 

Fintech innovation 

The growth is also being fueled by new services and partnerships. In April, SAMA signed an agreement with Google to launch Google Pay in Saudi Arabia using Mada’s payment infrastructure.

Expected to roll out later in 2025, this integration will allow users to add their Mada-linked debit cards to Google Wallet for seamless tap-to-phone payments and online purchases, further expanding the mobile payment options available to consumers. 

This follows earlier introductions of Apple Pay and local mobile wallets, meaning Saudi shoppers will soon have a full suite of global and domestic smartphone payment apps at their disposal. 

Such developments not only offer greater convenience but also help normalize cashless spending across all demographics — including younger, tech-savvy consumers who favor using their phones and wearables to pay.