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.


Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations

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Oil Updates — crude slips amid macroeconomic concerns despite firm demand expectations

LONDON: Oil prices slipped on Thursday after a surge in the previous session on a larger-than-expected draw in US gasoline stocks, as markets weighed macroeconomic concerns against firm near-term demand.

Brent futures fell 5 cents to $70.9 a barrel by 7:26 a.m. Saudi time, while US West Texas Intermediate crude futures shed 10 cents to $67.58 a barrel.

Both benchmarks rallied about 2 percent on Wednesday as US government data showed tighter-than-expected oil and fuel inventories.

US gasoline inventories fell by 5.7 million barrels, more than the 1.9 million-barrel draw expected by analysts, while distillate stocks also dropped more than anticipated — despite gains in crude stocks.

“Declining US gasoline inventories raised expectations for a seasonal demand increase in spring, but concerns about the global economic impact of tariff wars weighed on the market,” said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment.

“With strong and weak factors progressing simultaneously, it has become difficult for the market to lean decisively in one direction or the other,” he added.

Donald Trump threatened on Wednesday to escalate a global trade war with further tariffs on EU goods, as major US trading partners said they would retaliate for trade barriers already erected by the US president.

Trump’s hyper-focus on tariffs has rattled investors, consumers and business confidence and raised US recession fears.

Meanwhile, the Organization of the Petroleum Exporting Countries said on Wednesday that Kazakhstan led a sizeable jump in February crude output by the wider OPEC+, highlighting a challenge for the producer group in enforcing adherence to agreed output targets.

Worries about fumbling jet fuel demand weighed further on markets, JP Morgan analysts said, adding that US Transportation Security Administration data showed passenger volumes for March have decreased by 5 percent year-over-year, following stagnant traffic in February.

However, firm demand expectations limited overall market weakness.

Signs of robust US demand and Ukraine’s deployment of 377 drones targeting Russian energy infrastructure and military installations supported prices, said JP Morgan analysts in a client note.

“As of March 11, global oil demand averaged 102.2 million barrels per day, expanding 1.7 million barrels per day year-over-year and exceeding our projected increase for the month by 60,000 barrels per day,” they added.

 


Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions

Updated 12 March 2025
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Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions

RIYADH: Saudi Arabia has opened applications for pre-qualification for mining exploration licenses across three mineral-rich belts in the Riyadh and Madinah regions, covering nearly 50 percent of the total area.

This initiative spans 24,946 sq. km. and is part of the Ministry of Industry and Mineral Resources’ broader plan to offer exploration licenses for over 50,000 sq. km. in 2025, following an announcement made at the 4th International Mining Conference in January.

The ministry is inviting both local and international exploration companies to compete for these licenses, aiming to accelerate mineral exploration and development.

This move is expected to harness Saudi Arabia’s mineral wealth, estimated at SR9.3 trillion, and strengthen value-added mineral supply chains to support economic diversification, according to a ministry post on X.

The targeted mineralized belts include Nuqrah and Sukhaybrah Al-Safra in the Madinah region, as well as Nabitah in Riyadh. These areas are rich in resources like gold, copper, silver, zinc, and nickel, presenting substantial investment opportunities.

The pre-qualification application deadline for exploration licenses is set for May. To ensure transparency, geological and technical data for these sites are available on the Tadeen platform, providing investors with insights from previous licenses and geological surveys conducted by the Saudi Geological Survey Authority.

In line with efforts to streamline the licensing process, the ministry has designed this year’s mining exploration competition to be fully automated, transparent, and fair.

The process will consist of three key phases: the pre-qualification phase, which evaluates the technical capabilities of applicants; the site selection and bidding phase; and the final award and licensing phase. The pre-qualification phase began in January during the International Mining Conference and will continue until early May.

The ministry has ensured that all essential geological and technical data is accessible on Tadeen, ensuring a level playing field for all competitors, as reported by the Saudi Press Agency.

This initiative is expected to drive exploration spending, enhance the national geological database, generate new jobs, and contribute to sustainable economic growth. It also aligns with Saudi Arabia’s commitment to developing the mining sector in line with global best practices, with a focus on environmental sustainability and social responsibility.

In a related move, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, launched the second phase of the Mining Exploration Empowerment Program in January.

This initiative offers financial support of up to SR7.5 million per project to companies with valid exploration licenses that have been held for less than five years, according to SPA.

The program is designed to reduce risks for early-stage exploration companies, encourage investment in the mining sector, and complement existing incentives under the Mining Investment Law, which allows 100 percent foreign ownership and provides financing of up to 75 percent of capital costs through the Industrial Development Fund.

Saudi Arabia has allocated over 10,000 sq. km. for mining exploration in recent years. The upcoming 50,000 sq. km. for 2025 further underscores the Kingdom’s commitment to fostering a transparent and attractive investment environment, as reported by SPA.

This initiative plays a key role in the Kingdom’s Vision 2030, which seeks to position mining as a vital pillar of economic diversification and a driver of sustainable growth.


Egypt secures $1.2bn IMF disbursement amid reforms

Updated 12 March 2025
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Egypt secures $1.2bn IMF disbursement amid reforms

  • Cairo tackles fiscal hurdles with strategic reforms, international support

RIYADH: Egypt has secured a $1.2 billion disbursement from the International Monetary Fund following the completion of the fourth review of its economic reform program.

This disbursement, approved by the IMF’s Executive Board under the Extended Fund Facility, brings Egypt’s total funding under the program to approximately $3.2 billion.

In addition, the IMF has approved a $1.3 billion arrangement under the Resilience and Sustainability Facility to support Egypt’s climate-related reforms.

The 46-month EFF arrangement, which was initially approved in December 2022, is designed to promote macroeconomic stability and drive structural reforms to support sustainable growth. The IMF has acknowledged Egypt’s progress in stabilizing its economy, despite external challenges such as regional conflicts and trade disruptions.

“Since March 2024, the authorities have made considerable progress in stabilizing the economy and rebuilding market confidence despite a challenging external environment,” said Nigel Clarke, deputy managing director and chair of the IMF executive board.  

Macroeconomic indicators show a mixed recovery for Egypt. Gross domestic product growth, which slowed to 2.4 percent in the fiscal year 2023-24 from 3.8 percent the previous year, rebounded to 3.5 percent in the first quarter of the fiscal year 2024-25.

Inflation, which had surged in recent years, has been gradually moderating since September 2023, alleviating some pressure on household incomes.

Meanwhile, the government achieved a primary fiscal surplus of 2.5 percent of GDP in 2023-24, marking a one-percentage-point improvement from the previous year. This was primarily driven by expenditure controls, which helped offset weaker domestic revenue performance.

Despite several improvements, Egypt continues to face significant fiscal challenges, including high debt levels and substantial financing needs. The country’s current account deficit widened to 5.4 percent of GDP in 2023-24, largely due to a $6 billion drop in Suez Canal receipts in 2024, caused by trade disruptions in the Red Sea.

However, remittances from Egyptian workers abroad and strong tourism revenues have provided crucial foreign exchange inflows.

To ensure fiscal sustainability, the IMF has recommended that Egypt expand its tax base, streamline tax incentives, and improve compliance. As IMF spokesperson Clarke noted, “Broadening the tax base, streamlining tax incentives, and enhancing compliance are essential to creating fiscal space for priority development and social needs.”

Additionally, the IMF stressed the importance of a comprehensive debt management strategy, which includes deepening the domestic debt market and enhancing fiscal transparency, particularly concerning off-budget entities.

In response to external challenges, the Egyptian government has adjusted its medium-term fiscal targets.


OPEC upholds global demand projections, reports output boost

Updated 12 March 2025
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OPEC upholds global demand projections, reports output boost

RIYADH: The Organization of the Petroleum Exporting Countries reiterated its forecast for robust global oil demand growth in 2025, citing strong support from air and road travel.

In its monthly report released on Wednesday, OPEC projected that global oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026, with both forecasts remaining unchanged from the previous month.

OPEC noted that while trade concerns are expected to introduce volatility as new trade policies are rolled out, the global economy is expected to adapt.

In the same report, OPEC revealed that the broader OPEC+ group increased production by 363,000 bpd in February, with a significant boost coming from Kazakhstan, which has struggled to meet its OPEC+ output targets.

According to OPEC’s data, Kazakhstan’s production increased to 1.767 million bpd in February, up from 1.570 million bpd in January.

Although Kazakhstan has pledged to cut its output and compensate for overproduction, it has ramped up production at the Chevron-operated Tengiz oilfield, the country’s largest.

Meanwhile, Russia’s crude oil output slightly decreased by 0.04 percent to 8.973 million bpd in February, from 8.977 million bpd in January.

This was marginally below Russia's production target of 8.98 million bpd under the OPEC+ agreement. Russia’s quota is expected to rise to 9.004 million bpd starting in April as part of OPEC+'s planned gradual output increase.

Deputy Prime Minister Alexander Novak announced last week that OPEC+ had agreed to begin raising oil production in April, though this decision could be reversed if market imbalances arise.


Closing Bell: Saudi main index continues to decline on third consecutive day

Updated 12 March 2025
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Closing Bell: Saudi main index continues to decline on third consecutive day

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the third consecutive day on Wednesday as it shed 13.03 points or 0.11 percent to close at 11,704.93. 

The total trading turnover of the benchmark index was SR5.42 billion ($1.44 billion), with 155 stocks advancing and 83 declining. 

The MSCI Tadawul index also declined by 0.43 percent to 1,476.91.

However, Saudi Arabia’s parallel market Nomu increased 410.19 points to close at 31,173.41. 

 The best-performing stock on the main market was Al-Baha Investment and Development Co. The company’s share price increased by 8.33 percent to SR0.39. 

The share price of Al-Babtain Power and Telecommunication Co. also rose by 7.08 percent to SR41.60.

ARTEX Industrial Investment Co. also saw its stock price rising by 6.54 percent to SR14. 

Conversely, the share price of Saudi Industrial Investment Group declined by 3.96 percent to SR15.02. 

On the announcements front, Arabian Drilling Co. said that its net profit for 2024 reached SR321.3 million, representing a decline of 46.85 percent compared to 2023. 

In a Tadawul statement, the company said that the decrease in net profit was mainly due to start up cost of the new unconventional rigs, as well as higher net finance expenses and depreciation costs, partially offset by higher revenue.

The share price of the company edged down by 0.54 percent to SR91.40.

Savola Group said that its net profit witnessed a surge of 1009.2 percent year on year to reach SR9.97 billion. 

This was primarily driven by the distribution of its 34.52 percent stake in Almarai to shareholders, resulting in a net gain of SR11.3 billion.

The retail segment also contributed to the profit surge, with net earnings climbing from SR47 million in 2023 to SR154 million in 2024. This growth was fueled by the positive impact of the CXR program and an expanded store network.

The share price of the company closed on SR32.70, decreasing 3.54 percent, as it was the second worst performer of the day.

Theeb Rent a Car Co. said that the firm’s net profit for 2024 stood at SR182.7 million, representing an increase of 28.6 percent compared to 2023. 

In a Tadawul statement, the company revealed that its net profit increased due to the improved utilization rate of short and long-term rental segments.

This is in addition to the reduction of certain operational costs items, alongside with the increase in total revenues by 14.73 percent reached SR2.34 billion in 2024, marking a year on year rise of 4.01 percent. 

Theeb Rent a Car Co.’s share price increased by 4 percent to SR73.

AlSaif Stores for Development and Investment Co. also revealed its net profit decrease by 61.7 percent, reaching SR37.53 million.

The decrease was due to an increase in the cost of goods sold, the impact of exceptional offers and an increase in financing interest expenses.

Its share price edged up by 1.05 percent to SR7.60.