Fossil fuel use, emissions hit records in 2023, report says

Global gasoline consumption hit 25 million bpd last year, just above its 2019 pre-pandemic level. Shutterstock
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Updated 20 June 2024
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Fossil fuel use, emissions hit records in 2023, report says

LONDON: Global fossil fuel consumption and energy emissions hit all-time highs in 2023, even as fossil fuels’ share of the global energy mix decreased slightly on the year, the industry’s Statistical Review of World Energy report said on Thursday, according to Reuters.

Growing demand for fossil fuel despite the scaling up of renewables could be a sticking point for the transition to lower carbon energy as global temperature increases reach 1.5 degrees Celsius, the threshold beyond which scientists say impacts such as temperature rise, drought and flooding will become more extreme.

“We hope that this report will help governments, world leaders and analysts move forward, clear-eyed about the challenge that lies ahead,” Romain Debarre of consultancy Kearney said.

Last year was the first full year of rerouted Russian energy flows away from the West following Moscow’s invasion of Ukraine in 2022, and also the first full year without major movement restrictions linked to the COVID-19 pandemic.

Overall global primary energy consumption hit an all-time high of 620 Exajoules, the report said, as emissions exceeded 40 gigatons of CO2 for the first time.

“In a year where we have seen the contribution of renewables reaching a new record high, ever increasing global energy demand means the share coming from fossil fuels has remained virtually unchanged,” Simon Virley of consultancy KPMG said.

The report recorded shifting trends in fossil fuel use in different regions. In Europe, for example, the fossil fuel share of energy fell below 70 percent for the first time since the industrial revolution.

“In advanced economies, we observe signs of demand for fossil fuels peaking, contrasting with economies in the Global South for whom economic development and improvements in quality of life continue to drive fossil growth,” Energy Institute Chief Executive Nick Wayth said.

Industry body the Energy Institute, together with consultancies KPMG and Kearney, has published the annual report since 2023. They took over from BP last year, which had authored the report, a benchmark for energy professionals, since the 1950s.

Fossil fuel accounted for almost all demand growth in India in 2023, the report said, while in China fossil fuel use rose 6 percent to a new high.

But China also accounted for over half of global additions in renewable energy generation last year.

“China adding more renewables than the rest of the world put together is remarkable,” KPMG’s Virley told reporters.

Report Highlights

Consumption

  • Global primary energy demand rose by 2 percent in 2023 from 2022, to 620 EJ.
  • Fossil fuel use rose 1.5 percent to 505 EJ, which accounted for 81.5 percent of the overall energy mix, down by 0.5 percent from 2022.
  • Fossil fuel use did not increase in a single European country in 2023.
  • Electricity generation rose by 2.5 percent in 2023, up slightly from 2.3 percent of growth the previous year.
  • Renewable fuel generation – excluding hydro – gained 13 percent to a new record high of 4,748 terawatt-hours.
  • Renewables’ share of the overall energy mix excluding hydro was 8 percent, up from 7.5 percent in the 2022 report.
  • Including hydro renewables accounted for 15 percent of the global mix.

Oil

  • Oil consumption exceeded 100 million bpd in 2023 for the first time ever, following a 2 percent year-on-year rise.
  • Oil supply growth was met by non-OPEC+ producers, with US output gaining 9 percent on the year.
  • China overtook the US as the country with the largest refining capacity in the world last year at 18.5 million bpd, though refining volumes still lagged behind at 82 percent utilization vs the US’ 87 percent.
  • Global gasoline consumption hit 25 million bpd last year, just above its 2019 pre-pandemic level.
  • Biofuels production increased by 8 percent to 2.1 million bpd in 2023, driven by gains in the US and Brazil.
  • The US, Brazil, and Europe accounted for 80 percent of global biofuels consumption.

Natural Gas

  • Global gas production and consumption remained relatively flat on the year in 2023.
  • LNG supply rose by almost 2 percent to 549 billion cubic meters (bcm).
  • The US overtook Qatar as the leading global supplier of LNG after a 10 percent rise in production.
  • Overall European gas demand was down 7 percent on the year in 2023.
  • Russia’s share of European gas supply was just 15 percent in 2023, from 45 percent in 2021.

Coal

  • Coal consumption hit a new high of 164 EJ in 2023, up 1.6 percent on the year, driven by China and India.
  • India’s coal consumption exceeded that of Europe and North America combined.
  • US coal consumption fell by 17 percent in 2023 and has halved in the last decade.

Renewables

  • The record high in renewable generation was driven by higher wind and solar capacity, with 67 percent more additions in those two categories in 2023 than 2022.
  • As much as 74 percent of net growth in overall power generation came from renewables.
  • China accounted for 55 percent of all renewable generation additions in 2023, and was responsible for 63 percent of new global wind and solar capacity.

Emissions

  • Emissions grew by 2 percent on the year to exceed 40 gigatons.
  • Emissions rose despite the slight drop in fossil fuels’ share of the energy mix, because emissions within the fossil fuels category became more intense as oil and coal use rose and gas held steady.
  • The report notes that since 2000, emissions from energy have increased by 50 percent.

Pakistan to unveil Economic Survey 2024-25 on Monday

Updated 08 June 2025
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Pakistan to unveil Economic Survey 2024-25 on Monday

  • The survey will include details about performance and trends of various sectors in outgoing fiscal year
  • The survey will be followed by federal budget, which is expected to lay out targets for macroeconomic stability

ISLAMABAD: Pakistan will unveil its Economic Survey 2024-25 tomorrow, Monday, and detail major socio-economic achievements of the outgoing fiscal year, Pakistani state media reported.

The survey will include details about performance and economic trends of various sectors, including agriculture, industry, services, energy, information technology and telecommunications, capital markets, health, education and transport.

Annual trends of major economic indicators regarding inflation, trade and payments, public debt, population, employment, climate change, and social protection will also be part of the survey.

“Finance Minister Muhammad Aurangzeb will release the Economic Survey-2024-25 at a ceremony to be held in Islamabad,” the Radio Pakistan broadcaster reported.

The survey will be followed by the presentation of the national budget. The earlier dates for the announcement of Economic Survey 2024-25 and federal Budget 2025-26 were June 1 and June 2, respectively, but the government extended the dates to June 6 and June 7.

Pakistan is currently bolstered by a $7 billion International Monetary Fund (IMF) program and is navigating a long path to economic recovery. The country’s annual inflation rate rose to 3.5 percent in May, though its macroeconomic outlook has improved in recent months, supported by a stronger current account balance and increased remittances.

The Pakistani government says it remains committed to maintaining macroeconomic stability, accelerating structural reforms, and ensuring that economic growth translates into real and inclusive progress for all citizens.

Earlier this month, Planning Minister Ahsan Iqbal announced the government has allocated Rs1 trillion ($3.5 billion) for development projects in the upcoming budget for fiscal year 2025-26.


Saudi ports post 13% rise in container volume in May: Mawani 

Updated 08 June 2025
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Saudi ports post 13% rise in container volume in May: Mawani 

  • Imported containers rose 15.84% from a year earlier to 292,223 TEUs
  • Exported volumes increased 9.38% to 279,318 TEUs

RIYADH: Saudi Arabia’s seaports handled 720,684 twenty-foot equivalent units in May, a 13 percent year-on-year jump, driven by growth in imports, exports, and transshipment activity, official figures showed. 

According to data from the Saudi Ports Authority, also known as Mawani, imported containers rose 15.84 percent from a year earlier to 292,223 TEUs, while exported volumes increased 9.38 percent to 279,318 TEUs.

Transport, or transshipment, containers also climbed 12.89 percent to 149,143 TEUs, reflecting the Kingdom’s growing role as a regional trade hub. 

The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the country. It also supports the goals of Saudi Arabia’s National Transport and Logistics Strategy, which seeks to position the Kingdom as a global logistics center under Vision 2030. 

In a release, Mawani stated: “The total tonnage handled — general cargo, solid bulk cargo, and liquid bulk cargo — increased by 1.40 percent to reach 21,337,699 tonnes compared to 21,042,684 tonnes during the same period last year.”  

The uptick in activity highlights the ongoing expansion of port infrastructure and logistics services across the Kingdom. Shutterstock

It added: “The total general cargo amounted to 935,932 tonnes, solid bulk cargo 5,059,899 tonnes, and liquid bulk cargo 15,341,868 tonnes.”   

The ports received 1.63 million heads of livestock, up 61.22 percent compared to 1.01 million during the same period last year. 

Maritime traffic also picked up, with vessel calls rising 9.39 percent to 1,083 ships, while the number of passengers grew 68.15 percent to reach 95,231. The number of vehicles handled increased by 13.09 percent year on year to 84,352 units. 

The positive momentum follows a strong performance in April, when Saudi ports handled 625,430 standard containers, up 13.4 percent from a year earlier. 

In 2024, Mawani announced several major initiatives, including agreements and groundbreaking projects to establish eight new logistics parks and hubs at Jeddah Islamic Port and King Abdulaziz Port in Dammam, with a combined private sector investment of approximately SR2.9 billion ($773 million). 

These efforts are part of a broader strategy to enhance the competitiveness of Saudi ports and reinforce the Kingdom’s position as a global trade and logistics hub. 

The initiatives form part of a larger SR10 billion investment plan to develop 18 logistics parks across Saudi terminals, all overseen by Mawani. 


Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini 

Updated 08 June 2025
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Next-Gen HNWI prefer Middle East as favorite investment destination: Capgemini 

  • Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, report says
  • Global HNWI population increased by 2.6% year on year in 2024

RIYADH: Next-generation high-net-worth individuals consider the Middle East as their preferred investment destination, thanks to geopolitical security and economic stability, according to an analysis. 

In its latest report, consulting firm Capgemini revealed that Saudi Arabia in particular is aggressively courting international investors and ultra-wealthy individuals, thanks to the Vision 2030 economic diversification program. 

The findings by the Paris-based company align with the views shared by Henley & Partners in April, which said that Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires. 

According to Henley & Partners, more than 20,000 people with liquid investable wealth of $1 million or more are now based in the Saudi capital, while Jeddah is home to 10,400 millionaires. 

Riyadh and Jeddah are among the fastest-growing cities in the world for millionaires. Shutterstock

According to Capgemini, the UAE is also capitalizing on this trend and is attracting international HNWI investors. 

“Investors are targeting high-growth emerging economies for specific thematic investment options, tax regulation, economic and political stability, better wealth management services, and enhanced market connectivity. As a result of this search for geopolitical security and economic diversification, Asia and the Middle East have become appealing destinations,” said the report.

It added: “Singapore, Hong Kong, the UAE, and recently Saudi Arabia have established themselves as prime alternatives, utilizing advantageous tax policies, strong financial ecosystems, and political stability to draw global wealth.” 

The analysis added that enhanced market connectivity and improved wealth management options are among the other crucial factors that make the Middle East a desirable investment destination among next-gen HNWIs. 

Saudi focus

The report said the Kingdom “has introduced new residency programs aimed at HNWIs, positioning itself as a regional wealth hub.” 

It added: “As global wealth patterns shift, Saudi Arabia is actively enhancing its legal and financial frameworks to compete with traditional wealth hubs.” 

HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah. Shutterstock

In 2019, Saudi Arabia introduced the premium residency visa option, which allows eligible foreigners to reside in the Kingdom and enjoy benefits such as exemption from expat and dependents’ fees, visa-free international travel, and the right to own real estate and operate a business without requiring a sponsor. 

In January 2024, the Kingdom added five new products to its premium residency program. Under the new addition, the most notable one was the ability to own residential real estate assets worth a minimum of SR4 million ($1.07 million) within the Kingdom.

The rise in the number of HNWIs in Saudi Arabia coincides with the extensive Vision 2030 economic reform program launched in 2016. 

Efforts to diversify the Kingdom’s economy have also included a push to attract international companies to establish their regional headquarters in Riyadh, and as of March, over 600 global firms have opened their regional base in Saudi Arabia. 

Affirming the growth of Saudi Arabia, Knight Frank, in April, said that HNWIs from nine Muslim-majority countries are preparing to commit $2 billion toward property purchases in Makkah and Madinah. 

The trend comes as Saudi Arabia overhauls its property sector to position itself as a global tourism and business hub by the end of this decade. 

Capgemini said the UAE is also capitalizing on this trend and is attracting international HNWI investors. Shutterstock

Growth of Middle East region

The report also said the Middle East and Africa registered modest growth in HNWI wealth in 2024, gaining 0.9 percent and 4.7 percent, respectively, compared to the previous year. 

In 2024, the HNWI population in the Middle East witnessed a decline of 2.1 percent, while it grew by 3.4 percent in Africa. 

“In the Middle East, OPEC’s extension of oil production cuts and comparatively low oil prices, well below their peak in 2022, contributed to weak growth,” said Capgemini. 

Global outlook

According to the report, the global HNWI population increased by 2.6 percent year on year in 2024. 

Capgemini said the increase was driven by the growth in the population of ultra-HNWIs — those who hold at least $30 million in assets — which grew by 6.2 percent, as strong stock markets and artificial intelligence optimism boosted portfolio returns.

North America saw the biggest gains, with the HNWI population rising by 7.3 percent. 

Report said Asia and the Middle East have become appealing destinations. File/Reuters

Europe’s HNWI population declined 2.1 percent due to economic stagnation in major countries like the UK and France, while Latin America also witnessed a drop of 8.5 percent, due to currency depreciation and fiscal instability. 

Asia-Pacific’s HNWI population increased 2.7 percent year on year in 2024. 

Within the largest individual markets, the US topped the list, adding 562,000 millionaires as the country’s HNWI population grew by 7.6 percent to 7.9 million.

India and Japan were standouts in the Asia-Pacific region, with both countries registering 5.6 percent growth, adding 20,000 and 210,000 millionaires, respectively, last year. 

The HNWI population in China declined by 1 percent.


Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week

Updated 08 June 2025
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Muscat Stock Exchange cap tops $72.8bn after index climbs for 5th week

  • Benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment
  • Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week

RIYADH: The Muscat Stock Exchange extended its rally for a fifth consecutive week, with market capitalization rising to 28 billion Omani rials ($72.8 billion) in the week ending June 7. 

Driven by gains in key services and industrial stocks, the benchmark MSX index rose 17 points to close at 4,578, reflecting improved investor sentiment and increased activity across sectors, the Oman News Agency reported. The bourse recorded a weekly market capitalization gain of 79.3 million rials.

This comes as markets across the Middle East and North Africa rallied in early 2025, with the Arab Monetary Fund’s May report showing its Composite Index rising 4.37 percent year on year, supported by reforms to boost liquidity and attract foreign investment. 

“Last week witnessed a good performance for the stock market, with 34 securities rising, 30 declining, and 17 remaining stable,” the Oman News Agency report stated. 

The bourse recorded a weekly market capitalization gain of 79.3 million rials. Oman News Agency

It added: “Muscat Gases recorded the highest increase, rising 18 percent to close at 118 baisas. Galfar Engineering and Contracting rose to 72 baisas, up 9 percent. National Gas recorded an 8.8 percent increase to close at 86 baisas.” 

National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co., which operates in the bottling and distribution of liquefied petroleum gas in Dhofar Governorate. The acquisition is expected to strengthen its presence in Oman’s LPG market and boost group-level revenues and net profits. 

Trading volume on the Muscat bourse rose to 11 million rials per day, up from 10 million the previous week, while average daily transactions climbed to 2,149 from 1,787. The trading week was shortened to four days due to the Eid Al-Adha holiday, with the exchange set to resume operations on June 10. 

The services sector led gains, with its index rising five points on the back of strong performances from Ooredoo, Omantel, and OQ Gas Networks. In contrast, the industrial index fell 17 points, the financial index dropped 10 points, and the Shariah index edged lower by less than one point. 

National Gas Co. Oman announced it has acquired an 80 percent stake in Samharam Gas Co. File/National Gas Co. Oman

Last week, investors concentrated on OQ Base Industries shares, which traded 10.584 million rials — 24 percent of the total 44 million rials traded. The stock saw 1,678 transactions and closed at 122 baisas, up 4 baisas. 

Bank Muscat’s shares recorded 5.48 million rials in trades, accounting for 12.4 percent of the total trading value. OQ Gas Networks ranked third, with trades worth approximately 5.1 million rials. 

Sohar International Bank was fourth, with trading valued at 5.03 million rials. OQ Exploration and Production came fifth, with trades totaling 4.30 million rials, representing 9.7 percent of the total trading value. 


GCC exceeds global average in 2024 Carbon Circular Economy Index 

Updated 08 June 2025
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GCC exceeds global average in 2024 Carbon Circular Economy Index 

  • Region’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies
  • Expansion reflects increased investments in solar, wind, and other clean energy projects

RIYADH: Gulf Cooperation Council countries have outperformed the global average in the 2024 Carbon Circular Economy Index, scoring 41.5 points, latest data showed.

Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions through a balanced approach that incorporates mitigation technologies and enabling tools. 

It also measures their transition to a carbon-neutral future based on circular economy principles, the Oman News Agency reported. 

The GCC’s performance highlights its growing commitment to sustainable energy and carbon reduction strategies. 

Its push toward a circular carbon economy aligns with broader economic diversification goals, as the region seeks to reduce its reliance on hydrocarbons while tackling environmental challenges. 

Released by the Gulf Statistical Center, the index serves as an assessment tool to evaluate the progress of 125 nations toward achieving net-zero emissions. Oman News Agency

“The contribution of the design capacity of renewable energy plants in the GCC countries to the total design capacity of renewable energy plants worldwide also increased, reaching 0.43 percent in 2024, compared to 0.03 percent in 2015,” the ONA report stated. 

This expansion reflects increased investments in solar, wind, and other clean energy projects across the region. 

With some member states ranking among the world’s highest per capita emitters, the shift to sustainable practices — such as waste recycling, renewable energy development, and carbon capture — aims to balance continued energy leadership with climate commitments. 

According to the Jeddah-based Gulf Research Center, rapid urbanization and resource-intensive consumption patterns have further driven the need for circular solutions, particularly in water and waste management, as the GCC works to mitigate its ecological footprint while fostering green investment and job creation. 

Currently, the GCC operates three commercial carbon capture and storage facilities, with a combined capacity of 3.8 million tonnes of CO2 per year. These facilities play a crucial role in reducing industrial emissions, the ONA report noted. 

Looking ahead, the region is projected to capture and store up to 65 million tonnes of CO2 annually by 2035. CCS technology is a key component of the GCC’s strategy to limit global temperature rise to 2 degrees Celsius and achieve carbon neutrality by 2050. 

GCC’s leadership 

During its G20 presidency in 2020, Saudi Arabia introduced the Circular Carbon Economy Framework, which was endorsed by G20 leaders as a sustainable and cost-effective approach to tackling climate change while ensuring energy security. 

Building on this momentum, the Kingdom launched its CCE National Program in 2021, focusing on emissions reduction through four key strategies: reduce, reuse, recycle, and remove. 

Saudi Arabia has since implemented over 30 CCE initiatives across its energy sector, aligning with Crown Prince Mohammed bin Salman’s 2021 pledge to achieve net-zero emissions by 2060. 

The UAE has also emerged as a regional leader in circular economy policy. Its Circular Economy Agenda 2031 serves as a national blueprint, outlining 22 policies across four key sectors — manufacturing, food, infrastructure, and transportation — to drive advanced recycling, economic growth, job creation, and resource efficiency. 

As host of COP28, the UAE reaffirmed its global sustainability commitment, leveraging its strengths in green finance, clean energy, and climate innovation.