COP16: Largest-ever UN meeting on desertification starts in Riyadh

COP16 will run from Dec. 2 to 13. AN
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Updated 02 December 2024
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COP16: Largest-ever UN meeting on desertification starts in Riyadh

RIYADH: The largest-ever meeting of the UN Convention to Combat Desertification has kicked off in Riyadh, with bolstering global drought resilience one of the key goals.

Running from Dec. 2 to 13, the first few days of COP16 are set to see a number of high-profile summits, ministerial dialogues, and announcements to address the pressing challenges associated with land degradation, degradation and drought. 

French President Emmanuel Macron is expected to be among the attendees, as is the President of the World Bank Ajay Banga. 

The opening day of the event will see Saudi Arabia use its presidency of the event to launch the Riyadh Global Drought Resilience Initiative, in a bid to accelerate international action in this area.

In tandem, the Saudi Green Initiative Forum, running from Dec. 2 to 3, will include hundreds of policymakers, business leaders and subject matter experts from across the world in a dedicated pavilion in the COP16 Green Zone.

The Second International Forum on Greening Technologies is also set to take place in the Green Zone between Dec 6-8, including dozens of tailored sessions to explore solutions, innovations, and lessons learned from global greening projects, alongside showcasing the scientific research associated with restoration projects around the world.

3:15 p.m. - Riyadh Global Drought Resilience Partnership announced 

Saudi Arabia has announced the launch of the Riyadh Global Drought Resilience Partnership, supported by a $150 million investment, according to a top official.

Speaking during the first plenary meeting, COP16 president Abdulrahman Abdulmohsen Al-Fadhley explained that the initiative aims to promote multilateral efforts in the countries most impacted by drought.

“The launching of the Riyadh Global Drought Resilience Partnership aims at promoting multilateral efforts to promote resilience, namely in the countries most impacted by drought. It includes proactive partnerships to support the UNCCD,” Al-Fadhley said.

“It is my pleasure to announce that the government of the Kingdom of Saudi Arabia will support this initiative with the amount of $150 million in the coming 10 years,” he added.

2:46 p.m. - EU to ramp up colloboration

 The EU is set to intensify global collaboration at COP16 in Riyadh, working with international partners to tackle desertification, land degradation, and drought while addressing food security, biodiversity loss, and water scarcity.

In a press release, the 27 member-state union said these issues are global challenges that require urgent action and scaling up of viable solutions, adding that they, exacerbated by climate change, also aggravate economic, social problems such as migration and forced displacement.

Jessika Roswall, commissioner for environment, water resilience, and competitive circular economy, who is representing the EU at COP16, said: “The world loses 100 million hectares of healthy and productive land every year - around twice the size of France. Without rich and fertile soils, we have no food. Without healthy land, people lose their livelihoods.”

The statement further said that the EU advocates for strengthening the implementation of the UNCCD both within the current framework and beyond 2030, underlining that it is crucial for the union that parties agree on a ‘solid budget’ for the Convention secretariat to carry out the decisions made at the COP.

1:58 p.m. – New group announced to support COP16 policy making




Osama Faqeeha, Saudi deputy minister of environment and advisor to the COP16 president.

Saudi Arabia aims to secure concrete outcomes from COP16 with the establishment of a “Friends of the Chair” group, tasked with drafting the Riyadh Policy Declaration, a key outcome document of the conference.  

Osama Faqeeha, Saudi deputy minister of environment and advisor to the COP16 president, announced the formation of the group, emphasizing its role in shaping the conference’s ministerial declaration. 

“The Friends of the Chair group will be facilitated by a group representing the COP presidency, and a report on the outcomes of its work will be submitted directly to me in my capacity as President,” Faqeeha stated.

12:52 p.m. – ‘Action cannot wait’

Amina Mohammed, deputy secretary-general of the UN, called for urgent global action, particularly around strengthening international cooperation on land degradation, ramping up restoration work, and mobilizing finance at scale. 

“Land sustains us, and we are destroying it. Action cannot wait,” she said. 

11:44 a.m - COP16 President speaks

COP16 President Abdulrahman Al-Fadhley, also the Kingdom’s minister of environment, used his speech to emphasized the Kingdom’s commitment to combating desertification, adding: “The Middle East is one of the regions most impacted by land degradation, drought, and desertification. We seek to address environmental challenges in partnership with the international community.” 

The environment minister highlighted Vision 2030 as a cornerstone for the Kingdom’s green agenda, saying: “Protecting the environment and natural resources is essential for achieving sustainable development and quality of life.”

10.43 a.m. - Private sector funding crucial to tackling degradation, UN executive says




Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification. UNCCD

Restoring the world’s degraded land and holding back its deserts will require at least $2.6 trillion in investment by the end of the decade, the UN executive overseeing global talks on the issue told Reuters, quantifying the cost for the first time.

More frequent and severe droughts as a result of climate change combined with the food needs of a rising population meant societies were at greater risk of upheaval unless action was taken, Ibrahim Thiaw said.

A large chunk of the around $1 billion a day that is required will need to come from the private sector, said Thiaw, who is executive secretary of the UN Convention to Combat Desertification.

“The bulk of the investments on land restoration in the world is coming from public money. And that is not right. Because essentially the main driver of land degradation in the world is food production... which is in the hands of the private sector,” Thiaw said, adding that as of now it provides only 6 percent of the money needed to rehabilitate damaged land.

“How come that one hand is degrading the land and the other hand has the charge of restoring it and repairing it?,” said Thiaw, whilst acknowledging the responsibility of governments to set and enforce good land-use policies and regulations.

With a growing population meaning that the world needs to produce twice as much food on the same amount of land, private sector investment would be critical, he said.

To hit $2.6 trillion — approaching the annual economic output of France — the world needs to close an annual gap of $278 billion, after just $66 billion was invested in 2022, the UN said.

10:36 a.m. - Abdulrahman Abdulmohsen Al-Fadhley elected as COP16 president

 


Oil Updates — prices poised for weekly fall on Trump’s energy policies

Updated 24 January 2025
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Oil Updates — prices poised for weekly fall on Trump’s energy policies

LONDON: Oil prices were little changed on Friday but headed for a weekly decline after US President Donald Trump issued a sweeping plan to boost US production and demanded OPEC lower crude prices.

Brent crude futures were down 9 cents at $78.20 a barrel by 7:45 a.m. Saudi time on Friday, while US West Texas Intermediate crude dipped 9 cents to $74.53.

For the week, Brent was down 3.18 percent so far, while WTI shed 4.28 percent.

“Crude prices have been easing all through this week, as investors trimmed war premiums after the Gaza ceasefire while bracing for Trump’s energy policy change,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“For now, Trump is being unpredictable as predicted, setting oil prices up for headlines-oriented volatility ahead,” Sachdeva added.

Trump, during his speech on Thursday at the World Economic Forum in Davos, Switzerland, said he would demand that the Organization of the Petroleum Exporting Countries bring down the cost of crude barrels.

He also said he would ask Saudi Arabia to increase a US investment package to $1 trillion, up from $600 billion reported by the Kingdom’s state news agency earlier in the day.

Trump had declared a national energy emergency on Monday, rolling back environmental restrictions on energy infrastructure as part of a sweeping plan to maximize domestic oil and gas production.

On Wednesday, he vowed to hit the EU with tariffs and impose 25 percent tariffs against Canada and Mexico, and said his administration was considering a 10 percent punitive duty on China.

As attention shifts to a possible February timeline for new tariffs set by Trump, caution will likely persist in the market as any new trade restrictions will carry negative implications for global growth, potentially weighing on oil demand prospects, said Yeap Jun Rong, market strategist at IG.

Traders expect oil prices to range between $76.50 and $78 a barrel, Yeap added.

While bullish catalysts like a significant drawdown in US crude stocks are providing temporary positive swings, an overall oversupplied global market and ailing projections of Chinese demand continue to weigh on crude futures, Phillip Nova’s Sachdeva said.

US crude inventories last week hit their lowest level since March 2022, according to the US Energy Information Administration.

The EIA report, issued a day late because of a US holiday on Monday, said crude stockpiles fell by 1 million barrels to 411.7 million barrels in the week to Jan. 17, marking a ninth consecutive weekly decline.


Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

Updated 24 January 2025
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Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

  • Agility’s Henadi Al-Saleh highlights that innovation, investment help countries to capitalize on disruption in global trade

LONDON: Saudi Arabia is on track to emerge as a “super-connector hub,” leveraging ongoing global trade disruption to its advantage, according to experts speaking at the World Economic Forum in Davos on Thursday.

Henadi Al-Saleh, chair of the board of directors at Agility, a global leader in supply chain services, highlighted the Gulf Cooperation Council’s significant investments in infrastructure as a driving force behind this transformation.

She said: “(In) the past few years, the level of activity, especially around cargo, has increased several fold.

“If I look at the GCC, where we have invested in warehouses, and at the Emirates in Saudi Arabia, one of our key platforms, (they are) set to become super-connector hubs.

“These countries are investing in infrastructure, doubling down, and the level of activity is increasing.”

Al-Saleh identified digitalization as a key value in this development, saying that “in a time with so much uncertainty, having that clarity and understanding, even when changes take place, it gives me visibility. (With the digital tools) I know what the rules (are) and (how) I need to adjust.”

She added: “That’s one critical aspect in which you see these super hubs benefiting.”

While the level of trade has continued to grow since the end of the pandemic, socioeconomic and political factors have continued to disrupt industry.

Experts have said that US President Donald Trump’s second term is expected to exacerbate the disruption, with the president supporting potential trade tariffs on multiple exporting nations.

Chile’s Minister of Foreign Affairs Alberto van Klaveren acknowledged the challenges but also pointed to opportunities arising from these shifts.

He said: “There are possibilities. Some economies are opening up. We signed the CEPA Agreement (Comprehensive Economic Partnership Agreement) with the Emirates. We are interested in Saudi Arabia.”

He explained that the importance of diversification was not only in export markets but also in the types of goods and services traded.

However, experts cautioned that ongoing trade disruption could significantly impact the global energy transition, particularly in the green energy sector.

Al-Saleh said: “There are certain segments of people, businesses and technologies (in the green energy market) that are paying a price.

“But this is where, I think, from the private sector, it’s incumbent upon them to continue. This is irrespective of what happens today in terms of tariffs. There is a long view, and we need to all manage towards that long view.”

According to World Trade Organization data, every nation relies on imports and exports for at least 25 percent of its goods. Given this interdependence, Al-Saleh argued, trade will remain indispensable despite ongoing disruption.

She said: “You need to focus on being agile and resilient. Those are critical elements, and the way to become agile and resilient is really to diversify and invest in technology.”
 


Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Updated 24 January 2025
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Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

  • Kingdom has embarked on a transformation of traditionally industrial cities into modern smart cities, Bandar Alkhorayef tells World Economic Forum
  • Nation’s businesses are increasingly adopting new technologies to help enhance productivity, he adds

DAVOS: Saudi Arabia is becoming a regional hub for testing the use of new technologies as efforts to diversify the national economy continue, the minister of industry and mineral resources, Bandar Alkhorayef, told the World Economic Forum in Davos on Thursday.

The Kingdom has established national organizations such as the Saudi Data and AI Authority and the Future Factories Program to regulate and help businesses adopt new technologies that utilize artificial intelligence, machine learning, 3D printing and robotics, he added.

This smart infrastructure market is projected to be worth $2 trillion within the next 10 years, up from an estimated $900 billion in 2024, driven by growth in the integration of physical and digital industrial operations.

Alkhorayef said Saudi Arabia places a priority on manufacturing and has embraced the use of the latest technologies in sectors such as renewable energy and electric vehicles, as the Kingdom embarks on ambitious plans to transform traditionally industrial cities into modern smart cities.

“The investors coming to these cities (will find) a ‘plug-and-play’ kind of support,” he said, as authorities take steps to attract businesses and global talent to work and invest, and to establish the country as a regional hub for technological research, development and innovation.

The Kingdom’s Future Factories Program, for example, aims to provide training initiatives and loans to help 4,000 factories adopt new technologies, embrace automation and improve manufacturing efficiency.

“We’re very bold when it comes to testing new ideas and technologies,” Alkhorayef added, which makes it “interesting for new players to see (Saudi Arabia) as a place where they can not only seek financing or investment but also a place to test and pilot certain ideas.”

Such endeavors are endorsed by some of the country’s biggest corporations, including the chemical manufacturing company SABIC, the petroleum company Aramco, and the mining giant Maaden. Aramco, for example, has already adopted new technologies, including AI, to enhance productivity and reduce carbon dioxide emissions.

Alkhorayef was speaking during a WEF discussion titled “Next-Gen Industrial Infrastructure.” The other panelists included representatives of the African Union Commission, businesses and consulting firms.

Currently, up to 50 percent of Saudi Arabia’s deep-tech startups are focused on the development of AI or the Internet of Things, Alkhorayef said, as the country increasingly adopts digitalization in the public and private sectors.

The Saudi Data and AI Authority, established in 2019 to regulate and promote the national agenda for a data-driven economy, has said that AI is making significant contributions to operational efficiency. In 2023, global spending on AI exceeded $120 billion, with more than 72 percent of organizations incorporating the technology into at least one business area.

“We believe that adopting technology in the mining sector will lead to safer, more productive and energy-efficient mines,” Alkhorayef said by way of an example, adding that it is essential that authorities consider environmental protection as they seek to strike the right balance between the interests of investors and the local community.

“Making digitalization accessible is an important part of what we do (in the Kingdom),” he said. “It involves regulation, cybersecurity, human capital training, and investing in incubators to work and learn.

“In every sector, such as food, energy or mining, (we always ask) the question of how technology could be helpful.”


Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

Updated 24 January 2025
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Saudi economic success driven by ‘key North Star, not egos,’ says finance minister at WEF

  • Mohammed Al-Jadaan highlights Kingdom’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending
  • Transformation driven by clear decisions and significant investments led to strong economic performance, adds economic planning chief Faisal Al-Ibrahim

DAVOS: Saudi Finance Minister Mohammed Al-Jadaan on Thursday said that the Kingdom’s economic planners were being driven by their “North Star” and not egos as they look to maintain growth in the economy.

Speaking on a panel about the Saudi economy at the annual meeting of the World Economic Forum, Al-Jadaan highlighted Saudi Arabia’s shift from short-term budgets to longer-term fiscal planning, ensuring clear priorities and disciplined spending.

He said that there was flexibility and a readiness within the government to adapt plans based on global circumstances. “I’ve said this repeatedly, we don’t have egos. We are willing to change depending on circumstances and we will continue to do that. We will prioritize what matters,” he said.

“Our key North Star is what is driving us, and the tools can change, the means can change. It’s really that North Star that we are looking forward to,” he said.

He emphasized the progress and resilience of Saudi Arabia’s economy under Vision 2030, noting that the plan had mobilized the entire nation — government, businesses, right down to citizens — toward clear, long-term goals.

He attributed this success to visionary leadership, tough decision-making and consistent execution, adding that this approach could be a universal “recipe” for unlocking global potential.

On the Saudi-US relationship, Al-Jadaan highlighted its strategic importance over the past eight decades, emphasizing that Saudi Arabia had maintained strong economic, diplomatic and security ties with Washington, regardless of the administration in power, whether Republican or Democrat.

He described the partnership as a “win-win situation” that remained vital and was likely to endure into the foreseeable future.

Al-Jadaan was joined on the panel by Saudi Minister of Economy and Planning Faisal Al-Ibrahim, who attributed the Kingdom’s strong economic performance to a first wave of transformation driven by clear, courageous decisions and significant investments, not only financially but also in terms of effort and planning.

Looking ahead, Al-Ibrahim stressed that the next phase of Vision 2030 would focus on addressing more complex challenges, particularly in enabling the private sector.

He emphasized the goal of increasing the private sector’s contribution to 65 percent of GDP by fostering collaboration, co-developing opportunities and creating an environment where private enterprises could take the lead in driving economic growth.

Key priorities include enhancing institutional capabilities, ensuring policy clarity and predictability, and addressing barriers to innovation-driven entrepreneurship, he said.

Al-Ibrahim also underlined the government’s commitment to working closely with the private sector, noting that ministers and their teams often worked long hours to respond to and engage with private enterprises. This collaborative approach, he said, was deeply embedded in the country’s Vision 2030 blueprint for economic transformation.

IMF Chief Kristalina Georgieva, who was also on the panel, praised Saudi Arabia’s transformation efforts, highlighting the country’s ability to create an appealing environment for business and tourism.

She commended its forward-thinking approach in engaging the private sector to diversify experiences and attract repeat visitors. Referring to her visit to AlUla, she said: “I didn’t know what to expect, but I came out thinking it was great we decided to open our regional office in Riyadh.”

Georgieva also noted Saudi Arabia’s strategic planning to host global events and foster economic growth. She described the country as a “good example of transformation” that others could look to for inspiration in creating dynamic, sustainable growth through proactive planning and investment.
 

 


Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

Updated 23 January 2025
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Lebanon’s inflation rate drops to 45% in 2024, marking a return to double-digit figures

  • Monthly inflation also increased by 2.38% in December, marking the third consecutive monthly rise
  • Key contributors included miscellaneous goods and services, which rose 39.69% annually

RIYADH: Lebanon’s economic landscape showed signs of stabilization in 2024, with inflation rates returning to double-digit levels after three years of hyperinflation that had exceeded 200 percent.

The annual inflation rate stood at 45.24 percent last year, a substantial drop from the staggering 221.3 percent recorded in 2023, according to data from the Central Administration of Statistics.

Lebanon has endured prolonged economic instability, with the Lebanese lira losing 90 percent of its value since the crisis began in 2019. The drop in inflation aligns with the International Monetary Fund’s October forecast, which projected inflation in the Middle East and North Africa region to ease to 3.3 percent in 2024.

Last year represented a period of relative calm in terms of price volatility. Monthly inflation indices revealed a deceleration in price growth. The index for December reached 30,936.02, compared to 30,147.41 in November, showing a modest increase compared to the unpredictable fluctuations of prior years.

The slowdown in inflation is largely due to the stabilization of the Lebanese lira, driven by Banque du Liban’s monetary policies since 2023. By the spring of last year, the exchange rate had settled at around 89,500 Lebanese liras per dollar, following a sharp rise from 40,000 to 140,000 earlier in 2023.

This stability helped bring annual inflation below 100 percent in April, reaching 18.1 percent by December, though the same month’s inflation rose slightly from November’s 15.38 percent.

Monthly inflation also increased by 2.38 percent in December, marking the third consecutive monthly rise, following 2.02 percent in October and 2.30 percent in November. 

Key contributors to inflation in December included miscellaneous goods and services, which rose 39.69 percent annually, education fees at 31.27 percent, and health care at 22.93 percent. Only communications and furniture saw price declines at 2.99 percent and 1.99 percent, respectively.

Lebanon’s state-owned telecom firm, Ogero, said it is working to restore and expand its connectivity. The firm’s Chairman and Director General Imad Kreidieh announced in a live broadcast on Jan. 21 that the company’s expansion plans will resume, supported by funding from multiple donors.

North Lebanon recorded the highest monthly increase in December at 3.79 percent, followed by Beirut and Nabatieh at 3.59 percent, and South Lebanon at 2.97 percent.

The drop in inflation offers some relief to the Lebanese people, but with the election of former army commander Joseph Aoun as president on Jan. 9 and the appointment of the Chief Judge of the International Court of Justice, Nawaf Salam, as prime minister on Jan. 13, the need for comprehensive reform remains urgent.

The political breakthrough has also sparked a rally in Lebanon’s government bonds, which have nearly tripled in value since September. The election of Aoun, following 12 failed attempts to choose a president, has raised hopes that Lebanon might finally address its economic challenges. 

Most of the country’s international bonds, in default since 2020, rallied further after Aoun’s election, rising by nearly 0.9 cents on the dollar to around 16 cents — a modest recovery that underscores investor optimism despite Lebanon’s ongoing struggles.