KAUST drives Vision 2030 with groundbreaking sustainability efforts 

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Updated 09 December 2024
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KAUST drives Vision 2030 with groundbreaking sustainability efforts 

  • KAUST’s Accelerating Impact Strategy focuses on translating research into practical innovations, directly aligning with Vision 2030
  • KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to the Kingdom’s future

RIYADH: With a vision that merges innovative research and practical solutions, King Abdullah University of Science and Technology is shaping the future of Saudi Arabia by tackling sustainability challenges and driving economic innovation.   

Speaking to Arab News on the sidelines of the UN Convention to Combat Desertification COP16 in Riyadh, Sir Edward Byrne, the president of KAUST, emphasized the university’s critical role in achieving the Kingdom’s ambitious goals.

“KAUST has two major contributions to make: brilliant science to validate the principles and the direction forward, and technology implementation to enable the journey,” he said.   

KAUST’s Accelerating Impact Strategy focuses on translating research into practical innovations, directly aligning with Vision 2030.     

The university’s initiatives are addressing pressing environmental challenges, fostering economic development, and positioning KAUST as a global research leader.   

“We have several hundred projects currently geared to the environmental needs of the Kingdom,” Byrne said.      




Sir Edward Byrne, President of KAUST.

Turning vision into reality    

KAUST is spearheading innovations in agriculture, energy, and water management, sectors vital to Saudi Arabia’s future.    

The university’s Center for Sustainable Food Production is developing salt-resistant crops and advanced soil technologies to enhance dryland farming.   

“Our researchers are making better soil that holds water, enabling efficient farming with minimal resources,” Byrne said.  

In energy, KAUST is pioneering clean energy generation and battery storage solutions.   

“We’ve signed a memorandum on cryogenic carbon capture with the Ministry of Energy, showing how we can safely store carbon while transitioning to a diverse energy mix,” Byrne said. 

These innovations are not years away but are being developed and implemented now, benefiting both the Kingdom and the global community. 

Water sustainability is another priority. KAUST is exploring methods to reduce the energy cost of desalination by up to 90 percent. “Generating water is incredibly energy-intensive,” Byrne said.    

He added: “We’re looking at ways to make it far more efficient, which is crucial for the Kingdom’s sustainability goals.”   

KAUST’s contributions extend beyond the lab and into real-world applications, as Byrne highlighted partnerships with key entities such as SABIC, Saudi Aramco, and the Saudi Electricity Co., which are leveraging KAUST’s expertise to scale transformative technologies. 

Research backed by collaboration    

Prof. Sami Al-Ghamdi, a leading expert in environmental impact research at KAUST, highlighted the importance of collaboration.   

“Addressing sustainability and environmental issues requires partnerships,” Al-Ghamdi said.   

He added: “We work with ministries, companies like NEOM, and stakeholders to ensure our research translates into actionable solutions.”   

Al-Ghamdi stressed KAUST’s role in bridging the gap between science and implementation stating: “We don’t just create academic papers. We develop solutions that can be applied locally, nationally, and internationally.”   

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For example, KAUST is advancing the Red Sea research agenda, previously underexplored, to tackle global challenges related to energy, water, and food security.   

Through startups and innovations, the university is driving real-world applications of its research.   

“We’re transforming lab research into market-ready solutions, addressing issues like climate and environmental sustainability,” Al-Ghamdi said.    

He pointed out that KAUST is also playing a significant role in promoting green jobs, aligning with global trends in sustainability-focused employment.    

Monitoring sustainability   

Prof. Matthew McCabe is at the forefront of KAUST’s Earth Observation Dashboard, a tool that monitors land degradation and restoration in real time.   




Prof. Matthew McCabe.

“We are looking for planetary variables that we can turn data into actionable intelligence. And that’s going to be of use for things like the Saudi Green Initiative and the African Forest Restoration Project,” McCabe said.   

The dashboard provides independent verification of restoration efforts, a critical need as global agreements like the Kunming-Montreal Protocol call for restoring 30 percent of land by 2030. 

“You will be aware that in COP there’s a number of targets and policies that have been signed by representative countries. The Kunming-Montreal Protocol, for instance, calls for the restoration of 30 percent of land by 2030,” McCabe said.     

He continued: “Their targets and signatures on pages. What we actually need is independent verification that these activities and actions are actually happening. The beauty of having a platform in space is that it can see everything. It sees everywhere. There’s no country that it’s not passing over at some point in time.”  

McCabe underscored the economic benefits of restoring ecosystems noting: “I think having a healthy environment is the centerpiece of a prosperous economy. Full stop, so certainly there's going to be a huge explosion in green jobs.”   

The platform’s capabilities extend beyond Saudi Arabia. “We’re using lessons learned here to support large-scale projects like Africa’s AFA100, which aims to restore 100 million hectares,” McCabe stated. 

He added: “We have shown we can get these actionable insights, turning data into knowledge. We’ve shown that we can do that here in the Kingdom. What we want to do is translate and scale that to everywhere, and we’re working with partners around the world.” 

This scalability ensures that innovations developed at KAUST can benefit global environmental restoration initiatives.    

Addressing land degradation   

In another interview with Arab News, Prof. Fernando Maestre at KAUST stressed that land is fundamental for achieving sustainability. 

“Our projects improve restoration activities and monitor biodiversity and carbon sequestration across Saudi ecosystems,” Maestre said.   

One critical gap Maestre’s team is addressing is the lack of data on soil organic carbon in arid regions.   

“There is a lack of data from Saudi Arabia, for instance, and for many other arid and hyperactive regions. One of the key objectives of our research program is to contribute to fill this gap, providing reliable data obtaining and standardize manner across major Saudi ecosystems on soil carbon,” he said.  

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Maestre added: “Another key component for research is to provide the ground data that are needed to validate remote sensing approaches that are currently being used to monitor biodiversity and to characterize vegetation productivity, to achieving land degradation neutrality.”   

By combining advanced satellite technology with ground data, Maestre’s research supports both local and global sustainability efforts.   

However, Maestre emphasized the importance of local engagement. “Satellites won’t plant trees or move camels,” he said,  

He added: “We listen to local stakeholders and integrate their knowledge with cutting-edge science to create effective solutions.” 

Maestre’s approach involves building partnerships with local and international collaborators.   

“Collaboration is key to addressing global challenges. By working with over 200 scientists from 25 countries, we bring a global perspective to local issues,” he added.    

His team’s efforts are helping bridge the gap between research and real-world application, ensuring that science informs policy and practice effectively.    

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A bright future ahead

Since its founding 15 years ago, KAUST has established itself as a global research powerhouse.   

“KAUST is only 15 years old in an incredibly short period of time, it’s recognized globally as one of the world’s truly great research universities that draws incredible engineering and scientific talent into the kingdom, and that’s happening in an ongoing way,” Byrne said. 

KAUST’s groundbreaking contributions are already transforming Saudi Arabia’s view on global science.    

Byrne emphasized the university’s role as a beacon for attracting scientific talent to the Kingdom. “KAUST’s success shows that Saudi Arabia can develop a world-class research university from the ground up, inspiring other initiatives like NEOM,” he said. 

Looking ahead, KAUST’s commitment to sustainability and innovation will continue to drive progress. 

By addressing challenges in energy, water, food, and land management, the university is ensuring that Saudi Arabia not only meets its Vision 2030 goals but sets an example for the world.  

“KAUST is the third great university I've led, and it is by far the most aligned with the world's needs. The work going on there at the moment to help develop a sustainable future for the planet is in my mind just incredible,” Byrne concluded. 

As the Kingdom advances its Vision 2030 goals, KAUST’s role in sustainability, economic development, and innovation is more vital than ever. 

With its unique combination of cutting-edge research, strategic partnerships, and actionable solutions, KAUST is not just shaping the future of Saudi Arabia but also setting a global benchmark for scientific excellence and sustainability. 


Closing Bell: Saudi main index closes in red at 11,671 

Updated 30 April 2025
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Closing Bell: Saudi main index closes in red at 11,671 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 74.62 points, or 0.64 percent, to close at 11,671.58. 

The total trading turnover of the benchmark index was SR6.94 billion ($1.85 billion), as 47 stocks advanced, while 201 retreated. 

The MSCI Tadawul Index decreased by 4.89 points, or 0.33 percent, to close at 1,488.88. 

The Kingdom’s parallel market Nomu dipped, losing 54.20 points, or 0.19 percent, to close at 28,277.17. This came as 24 stocks rose, while 49 fell.

The best-performing stock on the main index was Jamjoom Pharmaceuticals Factory Co., with its share price surging by 9.91 percent to SR173. 

In the first quarter of 2025, the company’s net profit rose 204.26 percent quarter-on-quarter to SR157.03 million, according to a filing on the stock exchange. The group attributed the increase to higher sales and more efficient absorption of operating expenses, resulting in strong operating leverage. 

MBC Group Co. recorded the day’s steepest decline, with its share price slipping 4.42 percent to SR41.10. 

Advanced Petrochemical Co. announced its interim financial results for the first three months of the year, reporting a net profit of SR72 million — a 224.1 percent increase from the same quarter last year. 

Americana Restaurants International PLC also announced its financial results for the same period, with its net profit reaching SR122.4 million in what is an annual increase of 16.5 percent.

Similarly, the company’s total comprehensive income saw a surge of 44.5 percent to SR128.13 million. Its share price traded 3.04 percent higher on the main market to reach SR2.32. 

Modern Mills for Food Products Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR65.6 million, a 29.2 percent surge compared to the previous quarter. 

The company attributed the increase to higher gross margin, operational efficiencies and lower finance cost. 

Modern Mills for Food Products Co.’s share price traded 0.26 percent higher on the main market to reach SR39. 

Banque Saudi Fransi has launched the offering of US dollar-denominated additional Tier 1 capital notes as part of its international issuance program, the bank said in a bourse filing. 

The offering, conducted under its Additional Tier 1 Capital Note Programme, targets eligible investors in Saudi Arabia and internationally, the statement added. 

The subscription period is scheduled to begin on April 30 and end on May 1, with a minimum subscription set at $200,000 and increments of $1,000 thereafter. 

The value, pricing, and yield of the perpetual instruments — which are callable after six years — will be determined based on prevailing market conditions. 


Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties

Updated 19 min 35 sec ago
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Saudi Arabia raises undeveloped land tax to 10%, expands scope to vacant properties

JEDDAH: Saudi Arabia has raised the annual fee on undeveloped land from 2.5 percent to up to 10 percent of property value, as part of Cabinet-approved reforms to address market imbalances. 

The amendments to the White Land Tax Law expand its scope for the first time to include levies on long-vacant buildings and revised land-size thresholds for taxation. 

The changes, ratified by the Cabinet on April 29, mark the most significant overhaul of the law since its inception in 2016. 

They come as part of a broader effort to accelerate development, counter speculation, and address supply-demand imbalances in the Kingdom’s real estate sector, which has seen mounting pressure in key cities such as Riyadh. 

The reforms support broader efforts to curb speculation, boost land utilization, and enhance access to affordable housing in line with Vision 2030.

In a post on his official X account, Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail said: “The amendments included stimulating the use of vacant properties, and amending the targeted areas and the amount of the fee on undeveloped and developed vacant lands within the urban area, by up to 10 percent.”

The revised framework sets a minimum land area of 5,000 sq. meters for the application of the fee, covering both individual plots and contiguous holdings in designated urban areas. 

It also broadens the tax base to include vacant buildings — defined as ready-to-use buildings prepared for occupancy within the urban area that have not been used for a long period without acceptable justification, and whose lack of use or exploitation affects the availability of sufficient supply in the real estate market.

These vacant properties will now face an annual levy of up to 5 percent of their estimated rental value, as specified in forthcoming regulations.

The updated law introduces clearer criteria, phased implementation, and enhanced enforcement mechanisms, including grievance channels and unified property databases.

The Kingdom originally launched the White Land Tax Law to discourage land hoarding and promote more equitable development.

According to the Saudi Press Agency, Al-Hogail stated that the revised system is expected to enhance the efficient use of idle land and buildings, align supply with demand, and promote the productive use of real estate assets. It also seeks to encourage the development of undeveloped land and increase the overall availability of real estate, particularly residential properties.

Speaking to Al-Ekhbariya, Saif Al-Suwailem, spokesperson for the Ministry of Housing, said that the executive regulations for vacant property fees will outline the implementation mechanism.

The official added: “The amendments to the White Land Tax will enhance land use efficiency and stimulate the development of residential projects,” Al-Ekhbariya reported.

Moreover, he emphasized that amending the fees will have a clear and effective impact on enhancing supply and achieving real estate balance, noting that the system was completed in half the time.

The changes come as Saudi authorities intensify efforts to stabilize the housing market in cities like Riyadh, where surging land values and rental rates have strained affordability. 

A study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs recently prompted a series of measures, including lifting development restrictions in large swaths of northern Riyadh.

The government will issue executive regulations for the amended White Land Tax Law within 90 days of its publication in the official gazette. Regulations governing vacant property taxation are expected within one year, according to SPA.


Saudi banks weathering external debt surge amid Vision 2030 push: S&P report

Updated 30 April 2025
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Saudi banks weathering external debt surge amid Vision 2030 push: S&P report

RIYADH: Saudi Arabia’s banking sector is set to absorb a rise in external debt, driven by increasing financing demands under the Kingdom’s Vision 2030 agenda, according to a new report.

The analysis by S&P Global Ratings revealed that despite a marked increase in external liabilities over the past three years, Saudi banks remain in a strong position to manage associated risks.

The uptick in debt is primarily linked to short-term instruments, such as interbank and non-resident deposits, as well as bond issuances on international capital markets.

In 2024, Saudi banks extended loans worth SR371.8 billion ($100 billion), while deposits grew by only SR218.9 billion, creating a funding gap of SR152.9 billion to be refinanced.

S&P estimates that by the end of 2028, net external debt will account for only 4.1 percent of total lending, a manageable level by industry standards.

“More recently, banks have increasingly tapped international capital markets for funding as local sources proved insufficient to meet the country’s ambitious requirements, as set out in the state’s Saudi Vision 2030 development program, and the expected growth in corporate financing requirements,” the study stated.

The Kingdom’s lenders, which until recently maintained a net external asset position, posted a net external debt of SR34 billion by the end of 2024. S&P expects foreign liabilities to almost double over the next three years.

Saudi banks’ external funding remains heavily skewed toward interbank deposits and repurchase agreements, accounting for 55 percent of the increase in gross external debt last year.

Notably, 59 percent of all external debt in 2024 was owed to foreign banks, raising concerns over volatility, given the short-term nature of such funding.

Despite this, the report noted that nearly half of these foreign deposits originate from within the Gulf Cooperation Council, where banking systems are flush with liquidity.

This regional funding base, coupled with Saudi Arabia’s proven record of state support, is expected to cushion any potential shocks.

“We view Saudi authorities as highly supportive of the banking system and expect extraordinary support will be forthcoming should the need arise,” the analysis stated.

The agency also dismissed direct comparisons with Qatar, whose banking sector experienced a sharp rise in external debt during its infrastructure build-up for the 2022 FIFA World Cup.

At its peak, Qatar’s net banking external debt reached 40.6 percent of domestic loans at the end of 2021.

As of end-2024, Saudi banks held gross external debt of $109.5 billion, nearly “quadruple” its $29.5 billion at the end of 2018.

Yet the country’s total banking assets are almost double those of Qatar, helping to absorb the increase in debt.

In parallel with external funding, Saudi banks are exploring ways to unlock balance sheet capacity through mortgage asset sales.

The Saudi Real Estate Refinance Co. had acquired SR28.8 billion in home loans by the end of 2024, while discussions around mortgage-backed securities remain ongoing.

Despite holding mortgage portfolios worth $180 billion, or 23 percent of total lending, banks have been cautious about divestment.

Factors include favorable profitability, past losses due to higher interest rates, and investor hesitation around default recovery mechanisms in the Kingdom.

However, S&P predicts that a local market for residential mortgage-backed securities will gradually emerge, supporting further liquidity creation.

The report concludes that while external debt will continue to grow in the short term, Saudi banks retain ample headroom to navigate the risks, thanks to strong fundamentals, sovereign backing, and a measured approach to financial innovation.


Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

Updated 30 April 2025
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Kuwaiti investors encouraged to explore opportunities in Saudi Arabia by industry minister

RIYADH: Saudi Arabia’s minister of industry and mineral resources has urged Kuwaiti investors to seize untapped opportunities in the Kingdom’s mining sector.

The encouragement was given during Bandar Alkhorayef’s meeting on April 30 with a group of Kuwaiti businessmen at a gathering organized by the Saudi Embassy as part of the minister’s official visit to the Gulf country. 

The trip was designed to strengthen economic ties, enhance cooperation in the industrial and mining sectors, and attract high-quality investments to the Kingdom, according to a statement.

During his meeting with the investors, the minister highlighted the crucial contribution of the industrial and mining sectors to the Kingdom’s economic diversification, aligning with Saudi Vision 2030’s aim to establish the country as a global industrial leader and a key hub for mineral production and processing.

This aligns with developments across the Saudi mining sector in order to maximize its impact on the national economy and exploit mineral resources, estimated at more than SR9.3 trillion ($2.47 trillion), Alkhorayef noted.

“He pointed out that the National Industrial Strategy focuses on developing and localizing 12 vital industrial sectors, most notably food, pharmaceuticals, automotive, and aviation, as these sectors provide promising investment opportunities for local and international investors,” the newly released ministry statement said.

“His Excellency pointed out the Kingdom’s endeavor to enable industrial transformation by adopting the latest manufacturing technologies, including applications of the Fourth Industrial Revolution, developing digital infrastructure in the industrial sector, and developing human capabilities and qualifying them to deal with advanced technologies,” it added.

During the meeting, Alkhorayef highlighted the Kingdom’s launch of the Factories of the Future program, which aims to automate industrial facilities and transform them into smart factories.

The minister also indicated that the General Geological Survey Program for Mining Exploration currently covers 60 percent of the Arabian Shield region and that the sector offers promising investment opportunities in all stages of mining.

He highlighted Saudi Arabia’s strategic advantages that position it as a prime global investment hub, such as its location connecting three continents, advanced infrastructure, and abundant natural resources, as well as varied energy options and streamlined government processes and licensing.

Toward the end of the meeting, Alkhorayef encouraged Kuwaiti companies and investors to explore the distinctive opportunities in the Kingdom’s industrial and mining sectors, emphasizing the nation’s supportive capabilities and incentives designed to facilitate and enhance the investor experience.

Saudi Arabia, Kuwait to bolster collaboration in oil, commerce, industry

Bandar Alkhorayef meeting with Minister of Oil Tariq Sulaiman Al-Roumi. X/@BAlkhorayef

During his official visit to Kuwait, Alkhorayef also held bilateral meetings with the Minister of Commerce and Industry Khalifa Abdullah Al-Ajeel and the Minister of Oil Tariq Sulaiman Al-Roumi.

During the meeting with Al-Ajeel, the Saudi minister praised the longstanding and robust ties between the Kingdom and Kuwait, emphasizing that these historical relations serve as a solid foundation for strategic economic partnerships, particularly in the industrial sector.

The discussion also emphasized the need to bolster industrial integration between the two sides in order to advance sustainable industrial development and promote economic diversification in both nations.

The meeting with Sulaiman saw the crucial role of the crude oil sector highlighted as a key driver of development in both countries. It also explored strategic opportunities to expand collaboration in the petrochemical industry and discussed ways to increase trade exchange and direct joint investments toward emerging, high-potential sectors.

In an interview with Arab News on the sidelines of the Standard Incentives for the Industrial Sector event in January, Alkhorayef said that Saudi Arabia is taking a flexible approach to distributing its SR10 billion standardized incentive program — which provides financial support to industrial projects — to maximize its impact.

At the time, the minister said the program is designed to align with investor demand and deliver optimal returns.


GCC share of emerging-market dollar debt jumps to 35% in Q1 

Updated 30 April 2025
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GCC share of emerging-market dollar debt jumps to 35% in Q1 

RIYADH: Gulf Cooperation Council countries accounted for over 35 percent of all emerging-market US dollar debt issued in the first quarter of the year— excluding China— marking a sharp increase from around 25 percent in 2024, a new report revealed. 

In its latest analysis, Fitch Ratings forecast that the share is expected to continue rising through 2025 and 2026 as regional governments and corporations increasingly turn to debt capital markets for funding diversification, project finance, and budget support amid fiscal pressures and global economic uncertainty. 

The report stated that the total value of the GCC DCM exceeded $1 trillion across all currencies by the end of the first quarter, marking a 10 percent year-on-year increase.

Issuance reached $89 billion in the first three months of the year, up 11 percent from the previous quarter but down 3 percent compared to the same period of 2024. 

Despite a slowdown in activity since early April, Fitch noted “a healthy pipeline” is developing, supported by strong regional and Islamic investor liquidity. 

“The GCC DCM continues to be fragmented among its six member countries in its maturity, depth, and credit profile, with Saudi Arabia and the UAE the most mature,” the report stated. 

“In Kuwait, Qatar, Bahrain, and Oman, the lack of a link with international central securities depositories such as Euroclear or Clearstream partly hinders foreign-investor participation in the local-currency DCMs,” it added. 

According to the global investment banking firm State Street Global Advisors, other regions saw divergent trends. Brazil led the emerging market in local bond returns with a 13.7 percent gain, driven by currency appreciation and rate hikes. 

In contrast, Turkiye posted an 8.7 percent decline, reflecting political instability and currency depreciation. These shifts underscore varying macroeconomic dynamics across emerging markets. 

In the Kingdom, foreign investors increased their participation in local government debt, accounting for 7.7 percent of the investor base at the end of the first quarter of the year, up from 4.5 percent in 2024. 

Fitch noted that pressure from declining oil prices — forecast at $65 per barrel for 2025 and 2026 due to OPEC+ cuts and trade-related volatility — could widen fiscal deficits and lead to increased borrowing. 

Among the most vulnerable are Bahrain and Saudi Arabia, while Qatar, Kuwait and Abu Dhabi benefit from substantial sovereign wealth assets. Oman is seen as relatively well-positioned fiscally. 

Interest rate expectations are also playing a role in shaping the DCM outlook. Fitch projects the US Federal Reserve to lower rates to 4.25 percent by end of 2025, with GCC central banks expected to follow suit. 

Lower rates could support further issuance, as banks and corporates across the region continue to diversify their funding strategies. 

Sukuk remains a cornerstone of the GCC’s DCM, comprising around 40 percent of the total outstanding by the first quarter of the year. 

The region holds over 40 percent of the global sukuk market, though issuance fell 51 percent year on year in the first quarter to $18.2 billion. 

Conventional bonds rose 29 percent over the same period. Fitch reported that 83.5 percent of Fitch-rated GCC US dollar sukuk are investment-grade, with 57.8 percent in the “A” category and the majority holding stable outlooks. 

Environmental, social and governance financing is also gaining traction in the region, with GCC countries’ ESG DCM surpassing $50 billion in all currencies by the end of the quarter. 

National-level regulatory reforms are also reshaping local markets. In Kuwait, the cabinet’s approval of a long-delayed financing and liquidity law is expected to unlock new borrowing capacity. 

In the UAE, the apex bank continues to advance the Dirham Monetary Framework, with the currency’s share in the domestic DCM growing to 24.9 percent from just 0.5 percent in 2020. 

Sustainable finance is also gaining momentum, with the UAE developing a Sustainable Islamic M-Bills program and Qatar unveiling a sustainable finance framework. 

Despite global uncertainty, Fitch emphasized the resilience of the region’s credit quality, noting that no Fitch-rated GCC sukuk or bonds defaulted in 2024 or the first quarter of 2025.