Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

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Saudi Arabia’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues. Supplied
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Saudi Arabia’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues. Supplied
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Updated 13 October 2024
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Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

  • Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues
  • Saudi Arabia took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions

RIYADH: Global discussions on environmental challenges took center stage at the 79th UN General Assembly, with Saudi Arabia’s Ministry of Environment, Water, and Agriculture spearheading talks. 

In preparation for the upcoming UNCCD COP16, the Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues, primarily focusing on addressing the UNCCD target of restoring 1.5 billion hectares of land by 2030. 

The Saudi Deputy Minister of Environment, Water, and Agriculture and advisor to the incoming COP16 President, Osama Faqeeha, emphasized in an interview with Arab News, the urgency of this mission: “At the forefront of our actions in New York has been ensuring we raise international awareness of the urgency with which the world must tackle land degradation, drought and desertification.”

Saudi Arabia’s efforts at the UNGA were not limited to raising awareness. The Kingdom took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions. 

A key event, titled the “Road to Riyadh,” brought together critical stakeholders from the environmental policy, governmental, scientific, and NGO ecosystems. 
 
This meeting laid the foundation for discussions that will continue through COP16, focusing on creating an actionable plan to address various environmental concerns. 

Faqeeha said: “At the UN General Assembly in New York, we have been hosting and participating in events designed to find lasting solutions to land degradation, desertification, and drought.”

He added: “We have been, and will continue to, consult and engage with a wide range of experts, decision-makers, and environmental stakeholders in the buildup to COP16 in Riyadh, to raise awareness around policy initiatives and land restoration funding mechanisms, with the ultimate goal of delivering a COP of action in December.”

A significant outcome of Saudi Arabia’s participation at the UNGA was the launch of the groundbreaking “Rio Trio” initiative, which Faqeeha described as a critical dialogue among the three major environmental conventions — the UNCCD, which focuses on land degradation, UNFCCC, which tackles climate change, and CBD which is centered on biodiversity. 

The Rio Trio event, held on the sidelines of the UNGA, brought together decision-makers from Azerbaijan, the incoming presidency of COP29; Colombia, the incoming presidency of CBD COP16; and Saudi Arabia, the incoming presidency of COP16.

The initiative’s goal is to find unified solutions that address the interconnected challenges of land degradation, climate change, and biodiversity loss. 

“The end of 2024 stands to be an important period for our planet,” Faqeeha said, describing it as “an opportunity to help deliver decisive change with all three COPs taking place over a short period of time.”

Saudi Arabia’s commitment to multilateral cooperation is not limited to the UNGA. The Kingdom has also played a leading role in international environmental initiatives, such as the G20 Global Land Initiative, which was launched at the G20 summit in Riyadh in 2020. 

The initiative aims to halve degraded land by 2040, a target that aligns with Saudi Arabia’s broader mission to foster global collaboration on land restoration. 

Faqeeha highlighted the significance of this initiative, stating: “It was in fact at the G20 in Riyadh in 2020 when the group took the historic step of launching the Global Land Initiative, pledging to halve degraded land by 2040.”

He also highlighted that Saudi Arabia will continue to promote this goal at upcoming international engagements, including the G20 summit in Brazil.

As the Kingdom prepares for COP16, the country is actively working to rally the international community to deliver enhanced commitments on land restoration and prevention of further degradation. 

The COP16 conference, scheduled to take place in Riyadh, is expected to attract up to 20,000 participants, making it the largest UNCCD COP to date. 

“We are expecting to attract up to 20,000 people, making COP16 the largest UNCCD COP to date,” Faqeeha said. The conference will also feature the first-ever Green Zone, a space where public and private sectors, NGOs, the scientific community, and financial institutions can collaborate on finding and funding sustainable solutions to land degradation. 

Faqeeha added: “We are doing this to amplify the voices of the 3.2 billion people impacted by land degradation, drought, and desertification around the world.”
 
The Kingdom’s leadership at COP16 is built on a strong foundation of international cooperation and domestic environmental stewardship. 

Saudi Arabia’s Vision 2030 roadmap, which emphasizes economic diversification alongside environmental sustainability, is a driving force behind its ambitious land restoration goals.

“Sustainability is deeply rooted in the Kingdom’s development roadmap of Vision 2030,” Faqeeha highlighted. He explained that Saudi Arabia does not view economic development and environmental conservation as conflicting forces but as interlinked.

According to Faqeeha, the economic benefits of land restoration are significant, with the potential to generate $1.4 trillion annually through increased crop production from the restoration of degraded land.

He warned, however, that the cost of inaction is even higher, citing UN estimates that 90 percent of the Earth’s soil is at risk of degradation by 2050, which could result in far-reaching economic and social consequences.

Saudi Arabia’s leadership in this area extends beyond its borders. The Kingdom has committed to restoring 200 million hectares of degraded land domestically and internationally, reflecting its deep-rooted connection to land stewardship. 

Faqeeha stressed the importance of balancing economic growth with environmental protection, particularly in light of the nation’s responsibility as a G20 nation. “The Kingdom is conscious of its responsibility to lead the local, regional, and international climate action efforts,” he said.

In fostering global collaboration at COP16, Saudi Arabia encourages other countries to adopt sustainable land management practices and contribute to the UNCCD’s goals. 

“We need a transformational raising of awareness,” Faqeeha said, stressing that land restoration is not just an environmental necessity but an economic opportunity. 

He explained that the return could be as high as $30 for every dollar invested in restoring degraded land. 

To achieve this, Saudi Arabia is actively working to unlock funding mechanisms, including those available via multilateral development banks, to help drive global investment in sustainable land management.

Businesses will also play a critical role in addressing land degradation, and the Kingdom is committed to encouraging the private sector to take more active steps in this regard. 

“The unfortunate reality is businesses have often been driven by short-term profits, overlooking the long-term consequences of their actions,” Faqeeha observed. 

He stressed that COP16 will focus on shifting this mindset, encouraging businesses to recognize the long-term value of sustainable practices. 

“Restoring ecosystems and soil biodiversity is among the most effective weapons against weather extremes,” he underlined, adding that businesses stand to benefit from greater economic security by investing in regenerative land use.

In addition to engaging the private sector, Saudi Arabia is committed to involving the youth in the global land restoration movement. Faqeeha pointed out that over 1 billion young people in developing countries depend on land and natural resources for their livelihoods. 

He stated: “Global efforts on land restoration can succeed only if we involve the youth.” At COP16, the Kingdom will provide a platform for young people to participate in discussions and advocate for sustainable land management practices. 

“UNCCD recognizes youth as key changemakers and their social and economic integration and empowerment are critical for global land actions,” Faqeeha said.

He added: “That is why the UNCCD is actively promoting youth engagement and placing it at the forefront of global efforts to restore land and boost drought resilience.”

Faqeeha highlighted that today’s young generation will inherit the responsibility of desertification and land degradation, climate change, biodiversity loss, and growing socioeconomic inequality. 

Gender equality is another key focus of COP16. Saudi Arabia will host a Gender Forum in the Green Zone to ensure that women’s leadership and participation in land restoration efforts are prioritized. 

“Gender equality is critical for the global effort to prevent, reduce, and reverse land degradation,” Faqeeha emphasized.

The forum will serve as a platform to address gender inequality and promote the role of women, particularly those most affected by land degradation, in shaping sustainable solutions.

As Saudi Arabia looks ahead to COP16, it remains steadfast in its mission to foster global collaboration, drive tangible results, and create a lasting legacy in the fight against land degradation, desertification, and drought. 

“At the UN General Assembly, we have sought to galvanize governments, businesses, NGOs and experts- to name just a few- to arrive in Riyadh ready to deliver the robust multilateral action our planet desperately needs,” Faqeeha concluded. 

By leveraging the momentum built at the 79th UN General Assembly and continuing to champion multilateral solutions, the Kingdom is set to make COP16 a transformative moment for both people and the planet.


Aramco’s CEO calls for new global energy model during CERAWeek address

Updated 10 March 2025
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Aramco’s CEO calls for new global energy model during CERAWeek address

  • ‘Investments in all sources is needed,’ says Amin Nasser 

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.


Mideast set for private equity boom amid global market revival: report

Updated 10 March 2025
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Mideast set for private equity boom amid global market revival: report

RIYADH: The Middle East is rapidly emerging as a prime destination for private equity investment, spurred by a global resurgence in dealmaking, according to Bain & Co.’s latest Global Private Equity report.

The report highlights a 37 percent rise in global buyout investment value, reaching $602 billion in 2024, fueled by declining interest rates, renewed investor confidence, and the growing need to deploy idle capital.

As economic diversification accelerates across the Gulf, government-backed initiatives are driving investments in technology, renewable energy, and infrastructure, positioning private equity firms to capitalize on these shifting dynamics.

“The Middle East is entering a dynamic period of growth and transformation, creating unprecedented opportunities for investors,” said Gregory Garnier, head of Bain & Co.’s private equity practice in the region.

He emphasized that success in this market will depend on leveraging local expertise, forming strategic partnerships, and adopting innovative value-creation models.  

This rise in Middle Eastern activity mirrors broader global trends. Public-to-private transactions, for example, are leading the private equity market, accounting for $250 billion in 2024—representing nearly half of transactions over $5 billion in North America.

Global challenges persist

Despite a strong recovery in dealmaking, fundraising remains difficult, with investor caution driven by ongoing economic and geopolitical uncertainties.

While exit activity rebounded by 34 percent to $468 billion, private equity firms still face a backlog of 29,000 unsold companies, limiting distributions to limited partners.

Rising competition for high-quality deals has kept valuation multiples elevated, and increasing debt costs are complicating traditional leveraged buyouts. However, the Middle East stands out as a key market, with governments actively supporting private equity investments through initiatives like Saudi Vision 2030, the UAE’s economic diversification strategy, and Qatar’s long-term plans.

Sovereign wealth funds in the region have also become major players, acting as key limited partners and co-investors in both local and global deals.

Rising sectors and investment focus

Technology continues to dominate private equity globally, accounting for 33 percent of all buyout deals by value. In the Middle East, key areas of focus for investors include fintech, artificial intelligence, digital healthcare, and sustainable infrastructure projects. These sectors align with a growing trend toward impact investing and sustainability, driven by government efforts to foster long-term, eco-friendly economic growth in the Gulf.

Looking ahead, Bain & Co. forecasts that private equity will continue its recovery through 2025, assuming stable economic policies and trade conditions.

Hugh MacArthur, chairman of Bain’s Global Private Equity practice, noted that despite ongoing challenges such as inflation, interest rates, and geopolitical risks, the overall sentiment in the industry remains one of cautious optimism.


Closing Bell: Saudi stock market sees losses as TASI edges down 0.77%

Updated 10 March 2025
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Closing Bell: Saudi stock market sees losses as TASI edges down 0.77%

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.


Sharjah’s economy to soar 7.5% in 2025, boosting its sector hub status – UAE official

Updated 10 March 2025
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Sharjah’s economy to soar 7.5% in 2025, boosting its sector hub status – UAE official

JEDDAH: Sharjah’s economy is projected to grow by up to 7.5 percent in 2025, strengthening its position as a hub for diverse sectors, according to a senior UAE official.

Executive Chairman of the Department of Government Relations Sheikh Fahim bin Sultan bin Khalid Al-Qasimi highlighted that the expected expansion will be driven by progressive policies, increased economic integration, and rising foreign investment in strategic industries.

Al-Qasimi underlined the importance of ongoing dialogue with the private sector to strengthen core industries such as manufacturing, trade, agriculture, and environmental sustainability.

“We will be hosting a number of quite frank discussions with the private sector about what the government should be doing better to protect the core industries – manufacturing, trading, agriculture and the environment — that we have,” Al-Qasimi said during the Sharjah Ramadan Majlis 2025.

The event, which was held under the theme “Sharjah: Shaping the Future, Empowering Growth,” was attended by senior officials, including Sheikha Bodour bint Sultan Al-Qasimi, president of the American University of Sharjah; and Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade.

During the gathering, Al-Qasimi said that Sharjah’s economy is evolving at an impressive pace, with the gross domestic product now over 145 billion dirhams ($39.47 billion), and growth of 6.5 percent registered in 2023 — surpassing the global average by 3.5 percentage points. 

“We are immensely proud of the businesses that have found their home in Sharjah, especially those in the private sector, that have been the backbone of our economy for over a decade, and there is a reason why global giants such as Halliburton and Amazon have shown their confidence by investing in our emirate,” he said. 

Al-Qasimi forecasted that continued integration, smarter policymaking, and collaboration with the private sector would contribute to growth ranging between 6.5 percent to 7.5 percent in the coming years.

He added that the automotive industry and vehicle parts trading accounted for 24 percent of the emirate’s economy, with agriculture at 19 percent, at manufacturing on 17 percent — the same level the broader food ecosystem.

Al-Qasimi also pointed to the potential growth in the real estate sector in 2025, citing major developers like Alef Group and Arada, which are making significant investments in the emirate.

Founded by Sheikh Sultan bin Ahmed Al-Qasimi and Prince Khaled bin Alwaleed bin Talal, Arada is at the forefront of Sharjah’s expanding real estate market.

To foster this growth, Al-Qasimi stressed the importance of identifying supply chain interdependencies and collaborating closely with the private sector. “We need to identify the adjacencies and interdependencies in supply chains to understand from the private sector what we need to do to move forward,” he said.

Foreign Trade Minister Al-Zeyoudi pointed to Sharjah’s attractiveness to businesses, bolstered by initiatives like “Invest in Sharjah,” the Sharjah Investment and Development Authority, or Shurooq, and Sharjah Research, Technology and Innovation Park.

“Companies are moving here, and we aim to showcase the incentives, markets, and benefits available through the UAE’s Comprehensive Economic Partnership Agreements,” he said during the same event.

Juma Al-Kait, assistant undersecretary for foreign trade at the Ministry of Economy, emphasized the significance of foreign trade, a cornerstone of the UAE’s economic strategy.

He noted that the UAE’s foreign trade grew by 14.6 percent in 2024, hitting 3 trillion dirhams, outpacing the global rate, which recorded 2 percent. “If we look at Sharjah’s foreign trade, it grew 8.1 percent in 2024 compared to last year. There is a huge potential for the private sector to benefit or to utilize important agreements.” Al-Kait said. 

Sharjah is a key destination for manufacturing, services, and finance, with nearly 96 percent of its economy non-oil-based. Home to six specialized free zones, the emirate offers flexible investment opportunities and advanced infrastructure.


Saudi Arabia’s industrial output rises in Jan., driven by manufacturing 

Updated 10 March 2025
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Saudi Arabia’s industrial output rises in Jan., driven by manufacturing 

RIYADH: Saudi Arabia’s industrial production index grew 1.3 percent year on year in January, supported by an expansion in manufacturing and waste management activities, official data showed. 

According to the General Authority for Statistics, the index remained steady month on month at 103.9, maintaining levels seen in December. 

The manufacturing sub-index climbed 4 percent annually, driven by a 4.3 percent increase in the production of coke and refined petroleum products and a 4.2 percent rise in chemicals and chemical products. 

In contrast, mining and quarrying activity fell 0.4 percent from January 2024, reflecting a reduction in oil production to 8.92 million barrels per day from 8.96 million a year earlier. 

Saudi Arabia has been accelerating efforts to diversify its economy under Vision 2030, with the industrial and manufacturing sectors playing a key role in reducing reliance on oil. Initiatives such as the National Industrial Development and Logistics Program aim to establish the Kingdom as a regional hub for advanced manufacturing, focusing on petrochemicals, mining, and renewable energy. 

On a monthly basis, the manufacturing sub-index rose 0.3 percent, driven by a 0.1 percent increase in coke and refined petroleum products and a 0.5 percent rise in chemicals and chemical products. Meanwhile, the mining and quarrying sub-index edged up 0.1 percent. 

Other manufacturing segments posted mixed results. The non-metallic mineral products sector saw a 6.9 percent annual increase and a 1.7 percent rise from December, while basic metals manufacturing dipped by 0.7 percent year on year but surged by 0.5 percent compared to the previous month. 

The manufacture of paper and paper products recorded an annual increase of 5.1 percent and a slight monthly dip of 0.1 percent, while electrical devices manufacturing grew by 9.2 percent year on year and 0.7 percent month on month. 

Furniture manufacturing declined by 1.5 percent year on year and 0.4 percent month on month. 

Other economic activities within the manufacturing sector saw an annual rise of 0.6 percent, but a 0.3 percent month-on-month dip. 

The sub-index for electricity, gas, steam, and air conditioning supply fell by 1.7 percent, while the sub-index for water supply, sewerage, and waste management activities saw an 8.7 percent annual increase. 

In January, oil-related activities grew by 0.4 percent year on year and 0.1 percent compared to the previous month.

Non-oil activities also recorded growth, increasing by 3.6 percent annually and 0.2 percent on a monthly basis. This diversification reflects Saudi Arabia’s commitment to expanding its non-oil industrial base in line with Vision 2030. 

The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors.