MENA region seeing sharp growth in renewable energy sector: IEA

A giant wind farm is being built in Egypt which will provide power to 11 million homes. Shutterstock
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Updated 05 June 2024
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MENA region seeing sharp growth in renewable energy sector: IEA

RIYADH:The Middle East and North Africa region is registering the highest growth in the global renewable energy sector due to its relatively small current base and ambitious 2030 targets.

In its latest report, the International Energy Agency said the region shows the highest growth factor based on its ambitions — 4.5 times its current base, led by Saudi Arabia, Egypt and Algeria. 

“The MENA region accounts for less than 8 percent of global emissions from power generation and heat production. It aims to realize its significant untapped renewable energy potential by increasing capacity from less than 50 gigawatts in 2022 to 200 GW by 2030,” said IEA. 

It added: “Two-thirds of this ambition is concentrated in four countries: Saudi Arabia, Egypt, Algeria and Israel.” 

Saudi Arabia leading from the front

According to the report, Saudi Arabia is playing a crucial role in this energy transition journey, with the nation eyeing to boost its renewable capacity to 59 GW by 2030. 

“The Kingdom had less than 1 GW of renewable energy capacity installed in 2022 and it aspires to 59 GW by 2030, a significantly higher aim than it originally set in 2016 (9.3 GW). The increase was announced in 2019, in conjunction with plans to achieve net zero emissions by 2060,” said IEA. 

Algeria aims to install at least 14 GW of solar photovoltaics and 5 GW of wind by 2030, while Egypt seeks to increase renewable power generation to 37 GW by the end of this decade. 

According to the report, solar PV makes up almost half of the capacity aims for 2030. 

IEA highlighted that if all the projected ambitions in the region materialize, capacity for this energy source in the region will increase from 16.5 GW in 2022 to over 90 GW by 2030. 

“Even higher amounts could be achieved if some of the non-specified capacity in government ambitions is allocated to solar PV. High solar irradiation levels and increasing competitiveness make solar PV the main technology choice in the region’s ambitions,” said IEA. 

Clean energy transition progressing steadily




COP28 was held in Dubai in 2023

According to the analysis, countries worldwide have a significant opportunity over the coming months to develop clear plans for boosting renewable power, which could help move the planet closer to achieving the 2023 UN Climate Change Conference goal of tripling global capacity by 2030.

The report highlighted that tripling clean energy sources by the end of this decade is achievable through right policy decisions by governments. 

“At COP28, nearly 200 countries pledged to triple the world’s renewable power capacity this decade, which is one of the critical actions to keep alive hopes of limiting global warming to 1.5 degrees Celsius. This report makes clear that the tripling target is ambitious but achievable – though only if governments quickly turn promises into plans of action,” said Fatih Birol, executive director of IEA. 

He added: “By delivering on the goals agreed at COP28 – including tripling renewables and doubling energy efficiency improvements by 2030 – countries worldwide have a major opportunity to accelerate progress toward a more secure, affordable and sustainable energy system.” 

MENA projects set to boost renewable capacity

 

Shuaibah Two (2) Solar Facility

Place: Mecca Province, Saudi Arabia
Power: 2.06 GW  by 2030

 


Gulf of Suez Wind Power Project 
Place: Egypt
Power: 1.10 GW by 2026

 

Al-Ajban solar park

Place: Abu Dhabi, UAE
Power: 1.5 GW by 2026

 


Mohammed bin Rashid Al Maktoum Solar Park
Place: Dubai, UAE

Power: 5 GW by 2030

 

NEOM Green Hydrogen Project
Place: NEOM, Saudi Arabia
Power: 600 tonnes per day of green hydrogen by 2026 

Sharp price drop in renewable energy technologies

The energy think tank highlighted that more countries are turning toward renewables, such as solar PV and wind, following a sharp drop in costs over the past decade and renewed efforts by governments to build resilient energy systems with lower emissions.

According to the report, the amount of renewable capacity added worldwide each year has tripled since the Paris Agreement was signed in 2015. 

IEA revealed that the global renewable capacity additions reached almost 560 GW in 2023, representing a 64 percent year-over-year increase from 2022, with China becoming the biggest contributor. 

The energy agency also noted that the transition journey faces particular challenges, including lengthy wait times for project permits, inadequate investment in grid infrastructure, and high financing costs, especially in emerging and developing economies.

IEA added that governments should implement targeted actions to overcome these obstacles. 

“For example, on reducing financing costs to improve the bankability of renewable projects, it suggests approaches such as improving long-term policy visibility; supporting projects in the pre-development phase; and reducing price, inflation and exchange rate risks,” said the think tank. 

In May, another report released by the IEA said that the rapid rollout of clean technology will make energy cheaper. 

According to that study, the key task for governments globally is to make clean energy technologies more accessible to those who may otherwise struggle with the upfront costs. 

The agency highlighted that clean energy technologies are already more cost-competitive over their lifespans than those reliant on conventional fuels like coal, natural gas, and oil, with solar photovoltaic and wind being the cheapest options for power generation. 

The report highlighted that electric vehicles, although expensive compared to their traditional counterparts, will be cost-effective in the long run due to their low maintenance costs. 

The energy agency further noted that incentives and greater support, mainly targeted at disadvantaged households, can improve the uptake of clean energy technologies in the coming years. 

In the same month, IEA highlighted that investments in clean energy technology are strengthening the global economy by creating new industrial and employment opportunities. 

IEA noted that ensuring a reliant and diversified supply of energy transition minerals is crucial to meet the net-zero targets. 

The report also revealed that the market size of key energy transition minerals is expected to double from now to reach $770 billion by 2040.


Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

Updated 14 November 2024
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Dogecoin soars as Trump announces a government efficiency group nicknamed DOGE

  • Dogecoin got a bump after US President-elect Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE

NEW YORK: Wow, much bull market.
Dogecoin, the cryptocurrency whose mascot is a super-cute dog that muses things like “much wow,” has been racing higher in value since Donald Trump won the presidential election last week. It got another bump after Trump named Tesla’s Elon Musk as one of the heads of a new “Department of Government Efficiency,” which is not a government agency but does have the acronym DOGE.
All this makes sense and is maybe humorous for anyone who’s chronically online. For others, here’s some explanation about what’s going on:
What is dogecoin?
It’s a cryptocurrency, whose value rises and falls against the US dollar based on however much people will pay for it.
At first, it was seen as a joke. But over time, dogecoin has amassed a group of fans who have periodically sent its price soaring. Like other cryptocurrencies, supporters say it could be used to buy and sell things on the Internet without having to worry about a central bank or government affecting how many are in circulation.
How much has dogecoin climbed?
One dogecoin — which is pronounced dohj-coin — was worth less than 16 cents just before Election Day. It’s since more than doubled to nearly 38 cents, as of Wednesday afternoon, according to CoinDesk. It briefly got above 43 cents earlier Wednesday.
Why is it climbing so much?
Cryptocurrencies have generally been shooting higher since Trump’s election. Bitcoin, which is the most famous digital currency, has set an all-time high above $93,000 after starting the year below $43,000.
Excitement is racing because Trump has embraced crypto and said he wants the United States to be the “crypto capital of the planet” and create a bitcoin “strategic reserve.”
What does Elon Musk have to do with any of this?
Musk has become one of Trump’s close allies. He’s also been one of the most famous fans of dogecoin. In 2021, Musk played a character on “Saturday Night Live” who went by the nickname, the “Dogefather.”
In 2022, Musk made more headlines when he suggested Twitter should perhaps accept dogecoin as payment for subscriptions.
It all came to a head Tuesday, when Trump announced the “Department of Government Efficiency,” which will work from outside the government to offer the White House “advice and guidance” and will partner with the Office of Management and Budget to “drive large scale structural reform, and create an entrepreneurial approach to Government never seen before.”
It has the acronym DOGE, which is also the ticker symbol under which dogecoin trades. Musk will lead it, along with former GOP presidential candidate Vivek Ramaswamy.
This all sounds weird.
Dogecoin’s history is interesting.
In 2021, on April 20, dogecoin fans tried but failed to get its value above $1 on what they were calling “Doge Day.”
April 20 has long been an unofficial holiday for marijuana devotees, and Musk himself has referred to 420 several times in his career, including his tweet in 2018 saying he had secured funding to take Tesla private at a price of $420 per share.
Is the Shiba Inu whose picture is in the meme getting special treats because of all this?
Sadly, no. The dog, whose real name was Kabosu, passed away in Japan earlier this year at 18 years old. Much rest, may she have.


Number of active mining licenses in Saudi Arabia reaches 2,295

Updated 13 November 2024
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Number of active mining licenses in Saudi Arabia reaches 2,295

  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.


Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Updated 13 November 2024
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Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.


Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Updated 13 November 2024
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Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

  • Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF
  • Remaining shares held by PIF represent 62% of the firm’s issued share capital

RIYADH: Saudi Arabia’s Public Investment Fund has announced the offering of 2 percent of its Saudi Telecom Co.’s stake, amounting to 100 million shares, to qualified institutional investors locally and globally.

Goldman Sachs Saudi Arabia and SNB Capital, acting as joint global coordinators and bookrunners for PIF, announced that the share price, or offer rate, would be determined through an accelerated book-building process, according to a statement on the Saudi Stock Exchange.

This falls in line with PIF’s vision, which has about $925 billion assets under management, of becoming a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

The Tadawul statement said that following the completion of the offering, the remaining shares held by PIF in the company, representing 62 percent of the firm’s issued share capital, will be subject to a 90-day contractual lock-up undertaking.

The company will not receive any proceeds from the issuance, and the offering will not dilute the shares of the organization’s additional shareholders.

The statement also said that the final number of offer shares, price, and results will be announced by Nov. 14. 

The sale will be executed through off-market negotiated deals on Nov. 14 before market opening, under the Negotiated Deals Framework stipulated under the Trading and Membership Procedures issued by the Saudi Exchange.

The offering will be available to institutional investors within the Kingdom, qualified foreign institutional backers in line with the Rules for Foreign Investment in Securities, and institutional beneficiaries of swap agreements made with a Capital Market Authority-authorized person to trade shares on the Saudi Exchange on their behalf. 

It will also be open to Gulf Cooperation Council investors, including companies and funds authorized to trade in Saudi shares.


Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Updated 13 November 2024
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Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

  • MSCI Tadawul 30 Index declined 15.60 points to close at 1,500.54 points
  • Parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points

RIYADH: The Tadawul All Share Index in Saudi Arabia concluded Wednesday’s trading session at 11,930.45 points, marking a decrease of 117.22 points or 0.97 percent. 

MSCI Tadawul 30 Index also declined 15.60 points to close at 1,500.54 points, a 1.03 percent decrease. 

The parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points, or 0.33 percent.

TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling.

The best-performing stock was Shatirah House Restaurant Co., whose share price surged 10 percent to SR20.24.  

Other top performers include Saudi Cable Co. and Alkhaleej Training and Education Co., whose share prices soared by 5 percent and 4.08 percent to SR88.20 and SR30.60, respectively.

Other top performers include Bawan Co. and Middle East Specialized Cables Co.

The worst performer was Ash-Sharqiyah Development Co., whose share price dropped by 5.18 percent to SR19.40.

Other worst performers were United International Transportation Co. and National Medical Care Co., whose share prices dropped by 3.87 percent and 3.33 percent, respectively, to stand at SR79.50 and SR168.60.

Saudi Tadawul Group Holding Co. was another worst performer, whose share price dropped by 3.08 percent to SR232.60.   

On the parallel market Nomu, Leaf Global Environmental Services Co. was the top gainer, with its share price surging by 8.68 percent to SR98.90.

Other top gainers on the parallel market were Fad International Co. and Al Mohafaza Co. for Education, with their share prices surging by 7.24 percent and 6.04 percent to reach SR81.50 and SR28.10, respectively.

Rawasi Albina Investment Co. and Amwaj International Co. were the other top gainers on Nomu.

Al-Razi Medical Co. was the major loser on this market, as the company’s share price slipped by 7.98 percent to SR47.85.  

First Avenue for Real Estate Development Co. and Obeikan Glass Co. were other major losers on Nomu, with share prices dropping by 6.18 percent and 6.01 percent, reaching SR8.35 and SR49.25, respectively.