DHAHRAN: Aramco’s president and CEO has called for a fundamental shift in global energy transition planning, warning that the current approach risks severe economic and energy security consequences.

The planning of global energy transitioning needs a fundamental shift as the current approach is a severe economic risk, said Amin Nasser.

Delivering a keynote speech at CERAWeek 2025 in Houston on Monday, Nasser stressed the urgent need for a new global energy model that balanced sustainability, security, and affordability.

He pointed to annual funding needs of up to $8 trillion that would be required for global climate action and cautioned that neglecting conventional energy sources in the transition process could lead to dire outcomes, describing it as a “fast track to dystopia.”

Criticizing the belief that traditional energy sources could be rapidly phased out, Nasser said: “The greatest transition fiction was that conventional energy could be almost entirely replaced, virtually overnight. Hydrocarbons still provide over 80 percent of primary energy in the US, almost 90 percent in China, and even in the EU it is more than 70 percent.”

He added: “New sources add to the energy mix and complement existing sources; they do not replace them. New sources cannot even meet the growth in demand, while the proven sources needed to fill the gap are demonized and discarded. It is a fast track to dystopia, not utopia.”

Nasser also stressed that a new global energy model was essential to meet rising energy demand.

He said: “First, all sources must play a growing role in meeting rising energy demand in a balanced, integrated manner. Certainly, that includes new and alternative energy sources but they will complement conventional energy, not replace it in any meaningful way.

“So, we need investments in all sources. And to further free up such investments globally, we need extensive deregulation and greater incentives for financial institutions to provide unbiased financing. Second, the model must genuinely serve the needs of developed and developing nations alike, as originally promised, especially when it comes to technology. Third, and crucially, this has to be about delivering real results.”

Addressing the importance of reducing emissions, Nasser added that environmental concerns should remain at the forefront but must be approached pragmatically.

He said: “Let me be absolutely clear: This does not mean stepping back from our global climate ambitions. Reducing greenhouse gas emissions must still get the highest possible priority.

“That means prioritizing technologies that drive efficiency, lower energy use, and further reduce greenhouse gas emissions from conventional energy — and AI (artificial intelligence) will clearly be a game-changing enabler. But the future of energy is not only about sustainability; security and affordability must share the stage, with all energy sources working in harmony as one team, delivering real results.”

CERAWeek is one of the world’s most influential energy conferences, bringing together industry leaders, government officials, policymakers, and CEOs to discuss critical issues such as energy security, supply, climate, technology, and sustainability.

More than 10,000 participants from over 2,000 companies and 80 countries are attending this year’s event, which features over 1,400 expert speakers.

RIYADH: The Saudi stock market closed lower on Monday, with the Tadawul All Share Index falling by 90.89 points, or 0.77 percent, to finish at 11,745.63.

The total trading volume on the benchmark index amounted to SR5.3 billion ($1.4 billion), with 52 stocks advancing and 192 declining.

The parallel market, Nomu, also saw a decline, dropping 300.45 points, or 0.96 percent, to close at 31,031.37. Out of the 80 listed stocks, 32 gained while 48 declined.

The MSCI Tadawul Index mirrored the trend, falling by 7.38 points, or 0.49 percent, to close at 1,487.1.

Derayah Financial Co. saw the highest gains on the main index, with its share price surging 30 percent to SR39. Riyad Bank also performed well, rising 4.47 percent to SR30.40, while Alujain Corp. gained 3.59 percent, closing at SR33.20. Saudi Industrial Development Co. also saw an increase, rising 2.66 percent to SR27.

Al-Baha Investment and Development Co. suffered the largest loss, with its stock price falling 8.11 percent to SR0.34. Rasan Information Technology Co. dropped 7.76 percent, closing at SR72.50, while Riyadh Cables Group Co. fell 7.67 percent to SR118.

Molan Steel Co. revealed plans to issue riyal-denominated sukuk, appointing Afaq Financial as the sole arranger for the offering. The sukuk, valued at SR20 million, aims to finance the company’s investment and operational needs. The issuance has already received the necessary approvals from the Finance Authority. Despite this news, Molan Steel’s stock dropped 1.59 percent to SR3.10.

Derayah Financial, a leading digital investment platform, successfully listed its shares on the Saudi Exchange. The SR1.5 billion IPO was priced at SR30 per share, valuing the company at SR7.5 billion. The offering was oversubscribed, with institutional investors subscribing 162 times over, generating SR243 billion in orders. The retail tranche was 15 times oversubscribed, attracting 586,422 investors.

Arabia Insurance Cooperative Co. reported a 17.19 percent decline in insurance revenues for the year ending December 31, 2024, dropping to SR694.7 million from SR838.9 million in 2023.

The decline was primarily due to lower motor and medical insurance revenues, although the Engineering insurance segment showed growth.

The company’s net profit fell 0.14 percent, reaching SR30.1 million compared to SR60.5 million last year. This decrease was mainly due to a drop in net insurance results and lower other income, although investment income rose by SR7.2 million. Arabia Insurance’s share price fell 3.35 percent to SR12.10.

Nahdi Medical Co. reported an 8.4 percent increase in revenue for the full year 2024, rising to SR9.45 billion from SR8.71 billion in 2023. The growth was driven by strong retail performance and significant expansion in both the healthcare and UAE markets.

However, the company’s net profit declined by 8.1 percent, reaching SR820.7 million, down from SR892.6 million last year, due to increased operating expenses. Despite the strong revenue growth, Nahdi’s share price decreased by 1.86 percent to SR115.80.