COP29: Czech Republic, Italy push for increased nuclear power

Czech Republic’s Prime Minister Petr Fiala speaking at COP29. Supplied
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Updated 13 November 2024
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COP29: Czech Republic, Italy push for increased nuclear power

  • Czech Republic’s Prime Minister Petr Fiala emphasized the importance of nuclear power for the future
  • Italian Prime Minister Giorgia Meloni called for united global effort to combat climate change for future generations

RIYADH: Nuclear power is essential to achieving global climate goals as it provides a clean and safe energy source, world leaders stated at COP29 in Baku. 

Speaking on the second day of the summit’s High-Level Segment, the Czech Republic’s Prime Minister Petr Fiala emphasized the importance of nuclear power for the future, adding that his country is prepared to assist other nations in advancing this form of energy. 

“We will discontinue coal, and we will push for renewables and nuclear power. Nuclear power is essential to meet our climate goals, as it produces extremely clean energy and is also very safe. The Czech Republic has over 50 years of experience in nuclear power, and we are ready to assist any country,” said Fiala. 

He also warned that climate change could worsen critical global issues, including health, poverty, and hunger, advocating for collective resilience. 

“We must not give up. The Czech Republic is ready to do its part to prevent suffering and increase the chances for a good life for all,” he added. 

Italian Prime Minister Giorgia Meloni echoed similar sentiments, calling for a united global effort to combat climate change for the sake of future generations. 

She also emphasized that embracing new technologies and energy sources, such as nuclear power, is key to achieving climate goals. 

“In Dubai, we set ambitious goals, tripling the use of renewables by 2030. Reaching these goals requires everyone’s cooperation and adequate financial support,” said Meloni. 

She continued: “Technology neutrality is the right approach, and currently, there is no single alternative to fossil fuels. Population growth will increase the demand for energy, so we need an energy mix in the transition process. We must use all energy sources, including nuclear fusion in the future.” 

Greek Prime Minister Kyriakos Mitsotakis highlighted Greece’s role in energy transition, with nearly 50 percent of its electricity now derived from wind and solar, and emissions down 45 percent since 2005. 

“Our emissions are down 45 percent compared to 2005. Lignite once accounted for more than 50 percent of our power generation, but its share is now just 6 percent. We now rely on wind and solar for almost half of our electricity. We are insulating our houses and building a carbon capture value chain for our industry,” he said. 




Greek Prime Minister Kyriakos Mitsotakis. Supplied

Mitsotakis acknowledged Europe’s leadership in the green transition, as it accounts for only 6 percent of global emissions, but urged greater resources to counter “unprecedented climate shocks.” 

“We cannot focus so much on 2050 that we forget 2024. We need more resources to prepare to respond in time, to save lives and livelihoods and to help people and communities rebuild after disasters,” said Mitsotakis. 

The Greek prime minister outlined four urgent priorities for Europe: recognizing the trade-offs of energy transition, encouraging regulatory flexibility, unifying the European energy market, and supporting industry adaptation to climate goals. 

“Each country must choose its own ambitious path to achieve climate targets. We must allow innovation to do its work,” he noted. 

Croatian Prime Minister Andrej Plenkovic also emphasized Croatia’s commitment to decarbonizing its energy system and accelerating renewable adoption. 

“Our achievements in the renewable energy sector show our dedication. Our efforts show that economic growth and environmental stability can coexist,” said Plenkovic. 


COP29: Saudi Arabia signs major green energy pact with Central Asian nations

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COP29: Saudi Arabia signs major green energy pact with Central Asian nations

RIYADH: Saudi Arabia has signed a joint executive program with Azerbaijan, Uzbekistan, and Kazakhstan to strengthen collaboration on renewable energy development and transmission. 

The deal was signed on the sidelines of the 29th UN Climate Summit in Baku by Saudi Energy Minister Prince Abdulaziz bin Salman and his counterparts from the three nations, according to a press statement. 

The initiative aims to foster a strategic partnership to assess regional power grid interconnection projects centered on renewable power.

Saudi Arabia, a leader in Middle Eastern clean energy, aims to meet 50 percent of its power needs from renewable sources by 2030.

“This signing is in implementation of bilateral memorandums of understanding previously signed between Saudi Arabia and Kazakhstan in the energy sector on Jun 12, 2023, as well as two energy cooperation agreements with Azerbaijan on May 24, 2023, and with the Republic of Uzbekistan on Aug. 17, 2022,” noted the Ministry of Energy.

The ministry highlighted that this partnership will enhance energy infrastructure efficiency and promote integration of renewable energy into the national grids of the partner nations.

The program will also explore joint investment opportunities, laying groundwork for regional grid interconnection projects to support renewable electricity generation and storage. 

ACWA Power, a major Saudi utility company, will oversee these renewable energy projects in Azerbaijan, Uzbekistan, and Kazakhstan. 

“The signatory parties also agreed to adopt a mechanism for exchanging information and expertise, which includes knowledge-sharing among experts and specialists, organizing specialized conferences and seminars, as well as holding joint working sessions to strengthen close cooperation among the countries,” the statement added. 

Also on the COP29 sidelines, ACWA Power signed agreements to bolster renewable initiatives, including a deal with Uzbekistan’s Ministry of Energy to develop battery energy storage systems with a capacity of up to 2 gigawatts per hour. This initiative is aimed at enhancing grid stability. 

Additionally, ACWA Power entered into a memorandum of understanding with Azerbaijani firm SOCAR and Masdar to develop up to 3.5 GW of offshore wind projects in the Caspian Sea — the first of its kind for Azerbaijan. 

Another deal struck on the sidelines of the summit saw Saudi Electricity Co. sign an MoU with network operators in Azerbaijan, Kazakhstan, and Uzbekistan to develop regional interconnection projects. 

SEC also signed another MoU with AzerEnergy for cooperation in electricity transmission and integrating renewable energy sources into the power grid. 

During COP29, Saudi Arabia and Azerbaijan signed a comprehensive roadmap outlining a timeline and action plan for priority energy projects, facilitating cooperative efforts in various fields. 

“This roadmap aims to outline an action plan and establish a timeline for priority projects, facilitating procedures to achieve shared objectives,” said the Energy Ministry. 

It added: “The roadmap includes cooperation in several vital areas, such as renewable energy, carbon capture, utilization, and storage, clean hydrogen, energy efficiency, and enhancing the sustainability and resilience of supply chains, in addition to trade in refined and petrochemical products.” 


Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

Updated 14 November 2024
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Saudi inflation holds steady at 1.9% despite global price pressures: GASTAT

RIYADH: Saudi Arabia’s annual inflation rate reached 1.9 percent in October compared to the same month last year, driven primarily by higher housing costs, official data showed.

According to the General Authority for Statistics, actual housing rents saw an annual increase of 11.6 percent, with apartment rents rising by 11.3 percent. 

Overall, expenses for housing, water, electricity, gas, and other fuels rose by 9.6 percent compared to the same period in 2023. 

Saudi Arabia’s inflation rate remains among the lowest in the Middle East, highlighting the nation’s effective measures to stabilize the economy and mitigate global price pressures. 

A World Bank report last month noted Saudi Arabia’s economic resilience, projecting the Kingdom’s inflation rate to remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, lower than the Gulf Cooperation Council average.

“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for the month of October 2024 due to the weight formed by this section, which amounted to 25.5 percent,” stated GASTAT. 

The report also highlighted that prices for personal goods and services rose by 2.3 percent in October, led by a 24.1 percent rise in the costs of jewelry, watches, and precious antiques. 

Restaurant and hotel expenses saw a 1.9 percent annual increase, while education costs rose by 1.1 percent. Food and beverage prices saw a slight increase of 0.1 percent in October, driven by a 2.6 percent rise in vegetable prices. 

In contrast, prices for furnishings and home equipment fell by 3.1 percent year on year in October, while expenses for clothing and footwear declined by 2.7 percent. Transportation prices also dropped by 3.1 percent annually, influenced by a 4.2 percent decrease in vehicle purchase prices. 

Compared to September, Saudi Arabia’s Consumer Price Index experienced a modest 0.3 percent rise. 

“This monthly inflation index was influenced by a 0.8 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” added GASTAT. 

Prices for personal goods and services rose 0.4 percent month on month in October, while transportation expenses increased by 0.3 percent. Food and beverage prices and health expenses, however, saw slight declines of 0.2 percent and 0.1 percent, respectively. 

The World Bank projects GCC inflation to reach 2.2 percent in 2024 and 2.7 percent in 2025. Saudi Arabia’s gross domestic product is forecast to grow by 1.6 percent this year and accelerate to 4.9 percent in 2025. 

Wholesale Price Index 

In a separate report, GASTAT revealed that Saudi Arabia’s Wholesale Price Index increased by 2.4 percent in October year on year. 

“This increase is mainly attributed to a 5.4 percent increase in the prices of other transportable goods, affected by a 12 percent increase in the prices of refined petroleum products, as well as a 9.6 percent increase in furniture and other transportable goods,” the authority stated. 

Agricultural and fishing product prices saw an annual rise of 0.8 percent, as agricultural product costs increased by 2 percent. Metal products, machinery, and equipment also saw a 0.5 percent increase in October, led by a 3.5 percent rise in basic metals. 

Conversely, prices for ores and minerals dropped by 2.7 percent due to a decline in costs for stones and sand. 

Food, beverages, tobacco, and textiles decreased by 0.1 percent, driven by a 4.6 percent decline in the prices of meat, fish, fruits, vegetables, oils, and fats. 

Compared to September, the WPI declined by 0.2 percent, influenced by a 0.6 percent drop in prices of other transportable goods. 

Average Price Index 

In an additional report, GASTAT noted shifts in the average prices of goods and services across Saudi Arabia in October. 

Prices of Abu Sorra Egyptian oranges increased by 7.29 percent compared to the previous month, while green bean prices rose by 6.98 percent. Turkish plums and imported honey also saw monthly increases of 5.38 percent and 4.58 percent, respectively. 

In contrast, the price of imported barley fell by 6.16 percent, and the costs of hay and local melon dropped by 4.93 percent and 4.02 percent, respectively, in October. 


Oil Updates – prices ease on fears of higher output, sluggish demand

Updated 14 November 2024
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Oil Updates – prices ease on fears of higher output, sluggish demand

LONDON: Oil prices slipped in early trade on Thursday, reversing most of the previous session’s gains, weighed down by worries of higher global production amid slow demand growth, with a firmer dollar exacerbating the declines.

Brent crude futures fell 35 cents, or 0.5 percent, to $71.93 a barrel by 7:00 a.m. Saudi time. US West Texas Intermediate crude futures declined 42 cents, or 0.6 percent, to $68.01.

“Oil is tackling the (earlier) weaker demand forecast narrative by OPEC, who deferred rolling back additional production for yet another month, fearing the adverse effect on prices,” said Phillip Nova’s senior market analyst Priyanka Sachdeva in an email.

On Tuesday, OPEC cut its global oil demand growth forecast to 1.82 million bpd in 2024, down from 1.93 million bpd forecast last month, on weak demand in China, India and other regions, sending oil prices to their lowest in nearly two weeks.

Meanwhile, the US Energy Information Administration has slightly raised its expectation of US oil output to an average 13.23 million barrels per day this year, or 300,000 bpd higher than last year’s record 12.93 million bpd, and up from 13.22 million bpd forecast earlier.

The agency also raised its global oil output forecast for 2024 to 102.6 million bpd, from its prior forecast of 102.5 million bpd. For next year, it expects world output of 104.7 million bpd, up from 104.5 million bpd previously.

The EIA’s oil demand growth forecasts are weaker than OPEC’s, at about 1 million bpd in 2024, although that is up from its prior forecast of about 900,000 bpd.

Market participants are now waiting for the International Energy Agency’s oil market report, due later in the day, and the EIA’s US crude oil and product stockpile data for further trading cues.

Concerns about China’s demand remains a key contributor to softening prices, analysts say.

“Despite various stimulus measures implemented by Chinese authorities, there has been little to no improvement in economic activity or sentiment within mainland China,” said Phillip Nova’s Sachdeva.

China continues to be the “sore joint” for oil demand and the primary reason why oil markets are bracing for an oversupply in 2025, she added.

Also weighing on prices, the US dollar rose to near a seven-month high against major currencies on Wednesday after data showed US inflation for October increased in line with expectations, suggesting the Federal Reserve will keep cutting rates.

“..the stronger USD is creating strong headwinds for commodities,” ANZ Research said in a note.

A firmer dollar makes commodities priced in the greenback expensive for buyers using other currencies.


Mizuho to launch Saudi ETF with sovereign fund PIF

Updated 14 November 2024
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Mizuho to launch Saudi ETF with sovereign fund PIF

TOKYO: Japan’s Mizuho Financial Group is partnering with Saudi Arabia’s Public Investment Fund to create a Tokyo-listed exchange-traded fund featuring Saudi shares, providing retail investors easier access to a promising emerging market.

A report from leading Japanese business publication Nikkei says Asset Management One, a joint venture between Mizuho and Dai-ichi Life Holdings, plans to create an ETF this fiscal year, linked to the FTSE Saudi Arabia Index.

The fund will mainly track large, creditworthy stocks such as banks and Saudi Aramco, making it accessible for inexperienced retail investors. The minimum investment is expected to be in the thousands to tens of thousands of yen, putting it under $1,000.

The goal is to attract capital for the fund from a wide range of investors, with PIF and Mizuho Bank as the anchors. Mizuho also will aid PIF’s efforts to raise capital overseas as it aims to strengthen ties with the Saudi finance sector. The Japanese bank will use its fundraising expertise to coach personnel from the sovereign wealth fund, as well as provide support for the country’s transition away from oil.

In April, PIF announced a partnership with BlackRock, the world’s largest asset manager, under which the fund will contribute up to $5 billion to an investment platform that aims to draw money for domestic and overseas investment. Mizuho is the first Japanese private-sector financial institution to partner with PIF.

Nikkei describes Saudi Arabia as “increasingly appealing as an investment destination,” noting how the country’s stock market ranked eighth in the world by market capitalization last year.

This article also appears on Arab News Japan


Saudi PIF raises over $1bn with 2% stc stake sale 

Updated 9 min 46 sec ago
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Saudi PIF raises over $1bn with 2% stc stake sale 

  • Following the sale, PIF retains a 62 percent ownership in stc, equivalent to 3.1 billion shares
  • The sale aligns with PIF’s broader strategy to recycle capital into emerging sectors within the local economy

RIYADH: Saudi Arabia’s Public Investment Fund has raised SR3.86 billion ($1.03 billion) through the sale of a 2 percent stake in telecom firm stc. 

The offering, consisting of 100 million shares priced at SR38.6 each, was met with strong demand from both local and international institutional investors, according to a statement. 

The transaction represents the largest accelerated bookbuild offering ever conducted in Saudi Arabia and the broader Middle East and North Africa region, underscoring robust investor appetite for exposure to the region’s telecom sector and strategic assets managed by PIF. 

“PIF reiterates the strategic importance of its ownership in stc and its diverse partnerships with the company through a number of PIF portfolio companies,” the statement said.  

“PIF looks forward to supporting stc’s leading role in shaping the future of the ICT sector in Saudi Arabia, one of its priority sectors,” it added.  

Following the sale, PIF retains a 62 percent ownership in stc, equivalent to 3.1 billion shares.  

The sale aligns with PIF’s broader strategy to recycle capital into emerging sectors within the local economy, as the fund moves toward its vision of becoming a global investment powerhouse.  

Currently managing around $925 billion in assets, PIF aims to drive economic transformation in Saudi Arabia and influence global markets. 

The transaction was five times oversubscribed at the offer price, with demand from international investors accounting for three times of that, sources told Arab News.

They also revealed that 40 percent of the deal was allocated to international investors, marking the first-ever Accelerated Bookbuild Offering conducted on an overnight basis, in line with best practices in developed markets.

In a disclosure on the Saudi Exchange on Wednesday, it was noted that Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF in the transaction. The was to be executed as off-market negotiated deals on Nov. 14, under the Negotiated Deals Framework set by the Saudi Exchange. 

PIF has actively invested in both public and private sectors since its re-launch in 2017, establishing 99 companies and supporting a shift towards a sustainable economy.  

This approach positions Saudi Arabia as an emerging leader in economic and social transformation, providing avenues for both local and global stakeholders to engage in the Kingdom’s evolution. 

With this latest transaction, PIF continues to underscore its dual objectives of capital growth and strategic reinvestment, supporting both economic diversification in Saudi Arabia and the fund's role as a catalyst for sustainable global investment.