COP16: Saudi Arabia the biggest laboratory of development ideas, says top official 

Merza Hasan, the special adviser to the chairman of the Arab Fund for Economic and Social Development, speaking on the sidelines of the UN’s COP16 in Riyadh. AN Photo
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Updated 11 December 2024
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COP16: Saudi Arabia the biggest laboratory of development ideas, says top official 

  • Kingdom has spearheaded the sustainable revolution in the wider region over the past few years
  • SGI Forum, organized on the sidelines of COP16, also launched five new groundbreaking environmental projects, valued at $60 million

RIYADH: Saudi Arabia is playing a crucial role in guiding the Arab world to a path of sustainable development, with the Kingdom spearheading the green transition journey in the region, a top official said. 

Speaking to Arab News on the sidelines of the UN’s COP16 in Riyadh, Merza Hasan, the special adviser to the chairman of the Arab Fund for Economic and Social Development, said that water scarcity is one of the most critical problems nations will face due to adverse effects of climate change. 

“The Arab Fund was created by 22 Arab countries. The biggest two shareholders are Kuwait and Saudi Arabia. And Saudi, the way they look at the development now, they want to pass all this experience and the vision and whatever they learn, the different sectors which they are investing in, to scale it up to other countries, and especially with the Arab countries,” said Hasan. 

He added: “I think what is happening now in Saudi Arabia, it is the biggest laboratory of development and development ideas.” 

Hasan said the Kingdom should exchange its expertise in various sectors like water, electricity, and tourism, as well as infrastructure and job creation, with neighboring Arab nations. 

Through the Saudi and Middle East Green Initiatives, the Kingdom has spearheaded the sustainable revolution in the wider region over the past few years. 

The fourth edition of SGI, organized on the sidelines of COP16, also launched five new groundbreaking environmental projects, valued at SR225 million ($60 million).

These marked a significant step forward in Saudi Arabia’s ambitious environmental strategy, bringing the total investment in SGI initiatives to over $188 billion.

Hasan added that the Arab Fund, in the future, will be investing more to ensure water security in its member nations. 

“Water is linked to many things; livelihood, prosperity, food security and manufacturing. The Arab Fund, in the coming years, is going to put a lot of resources into the water sector and addressing water challenges in the Arab region,” said Hasan. 

He added: “It (water crisis) is huge, it is big. The way I can describe it, we are now in crisis. If we do not do anything and if we do not act fast, we are going to be in catastrophe.”

During the talk, Hasan revealed that the Arab Fund is giving prime preference to the green economy, and the future projects initiated by the organization will be completely sustainable. 

During COP16, the Arab Coordination Group committed up to $10 billion by 2030 to address the critical challenges of land degradation, desertification, and drought.

“We are going to improve our knowledge when it comes to anything related to the environment, water, and the agricultural sector, and we want to inject green into that knowledge. We are not rich in our data, we are extremely poor when it comes to the data related to many things that are related to the environment,” said Hasan.

He also revealed that the fund is currently creating an Arab Development Data portal, where Saudi Arabia is also playing a pivotal role. 

“We are working with all the statistical units to improve the capacity when it comes to the data and data related to the environment and green economy. We are also linking it to the many of these intellectual reports which are available, which nobody tapped into,” added Hasan. 

He said that the fund is also using advanced technologies such as artificial intelligence to collect and leverage data to ensure a sustainable future. 


Qatar’s real estate market shows resilience with luxury and office sectors leading growth

Updated 11 December 2024
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Qatar’s real estate market shows resilience with luxury and office sectors leading growth

RIYADH: Qatar’s real estate market is showing resilience amid shifting dynamics, with a clear divergence between the performance of luxury and standard offerings, a new report showed. 

Over the past 12 months, villa rents declined by 7.5 percent to an average of 15,085 Qatari riyals ($4,139) per month, while luxury apartment rents rose by 2.3 percent to 11,200 riyals per month, according to the latest Qatar Real Estate Market Review from Knight Frank. 

The market has been evolving in recent years, driven by government reforms and infrastructure investments aimed at fostering long-term economic growth and diversification.

The government’s introduction of property-linked residency schemes and designated freehold zones for expatriates has spurred activity in the residential market. 

For apartments, this has meant stronger demand for premium locations like the Pearl Island and Lusail, reinforcing their status as highly coveted destinations for both living and investment. 

Apartment rentals in Qatar’s premium locations have emerged as a key growth driver, reflecting shifting tenant preferences. Areas such as West Bay and the Marina District have become hotspots for expatriates and professionals, with rental increases of 9.6 percent and 3.2 percent, respectively. 

In contrast, villa rents have continued to decline, with key neighborhoods like Nuaija and West Bay Lagoon seeing even steeper drops of 20 percent and 9 percent, respectively. This reflects a supply glut and shifting tenant priorities toward more compact, urban living. 

Price office spaces 

Despite some pressures in the residential sector, Qatar’s office market is experiencing growth, supported by demand for prime office spaces. Grade A office rents have risen by 3.2 percent over the past 12 months, driven by increased activity from government ministries, state-owned enterprises, and multinational firms. 

Prime districts such as Lusail have reported a 3 percent annual increase in rents, with rates reaching 92 riyals per sq. meter per month. West Bay remained a leading destination, commanding rents as high as 150 riyals per sq. meter for premium spaces. 

This growth aligns with Qatar’s National Vision 2030, the report stated, adding that the vision aims to foster a sustainable and diverse economy, with plans to double the size of the economy on track, supported by an expected increase in government revenues to 2014 levels this year. 

The report noted that an emphasis on high-quality, contemporary spaces continues to drive tenants. away from secondary locations, where rents have dropped to 50 riyals to 70 riyals per sq. meter. This shift reflects the broader “flight to quality” trend, with tenants increasingly prioritizing modern facilities in central business hubs. 

Hospitality sector 

The Qatari hospitality market continued to expand, driven by a series of major developments and a growing influx of tourists. 

The country’s efforts to diversify its tourism industry have led to the creation of new attractions such as the Qatar National Museum, Meryal Water Park, and the upcoming $5.5 billion Simaisma theme park. 

“Qatar’s tourism sector has solidified its position as a vital driver of economic growth, achieving an impressive 31 percent growth in 2023 to reach a historic high of 81.2 billion riyals, which equates to 10.3 percent of the gross domestic product,” the report stated. 

This growth has fueled the hospitality market, with more than 1,300 new hotel rooms added in 2023 alone. The report noted that the quality room supply is expected to grow further, with projections reaching 47,290 keys by 2026. 


Saudi-Turkish Business Forum explores export opportunities across 10 sectors

Updated 11 December 2024
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Saudi-Turkish Business Forum explores export opportunities across 10 sectors

RIYADH: Saudi Arabia and Turkiye explored export opportunities across 10 economic sectors in a meeting involving business groups from both countries.

The Saudi-Turkish Business Forum, which took place in Riyadh, witnessed the participation of a delegation from the country’s Exporters Assembly, comprising 40 Turkish companies, along with several firms from the Kingdom.

The Turkish delegation at the event organized by the Federation of Saudi Chambers also included organizations operating in several industries, such as mining, chemicals, food, and services, as well as iron, metal products, electricity, and electronics.

Additional firms included those operating in equipment, machinery, grains, and legumes, as well as oilseeds, fruits, and vegetables, the Saudi Press Agency reported.

This comes as the trade volume between Saudi Arabia and Turkiye reached SR25.4 billion ($6.75 billion) in 2023, achieving a growth rate of 15.5 percent.

While Saudi exports to Turkiye accounted for SR15.6 billion, Turkish imports to the Kingdom reached SR9.8 billion.

The visit by the Turkiye Exporters Assembly seeks to unveil promising prospects in the Kingdom as the Eurasian nation seeks to increase its exports worldwide.

Last year, Turkiye’s exports totaled $255.8 billion, and the country aims to increase this figure to $400 billion by 2028, working closely with exporters to accelerate the growth of foreign trade.

In November, Saudi Arabia and Turkiye deepened commercial ties by signing 10 cooperation agreements at an event in Istanbul, advancing strategic initiatives across diverse sectors.  

The Saudi-Turkish Business Forum, taking place at the time, spotlighted opportunities for joint ventures in agriculture, food, and tourism, along with potential collaborations in advanced manufacturing, construction, and infrastructure.

Other key areas at the time included technology, innovation, and logistics, SPA reported.  

Also organized by the Federation of Saudi Chambers and the Foreign Economic Relations Board of Turkiye, the event attracted over 450 companies and several government agencies from both nations at the time.

Speaking at the time, Turkish Minister of Trade Omer Bolat shed light on how the country aims to raise the volume of its bilateral trade with the Kingdom to $30 billion in the medium and long term, and diversify its fields, especially tourism, health, infrastructure, information technology, and the defense industry.  


Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry

Updated 11 December 2024
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Saudi POS spending reaches $3.78bn, driven by surge in utilities and jewelry

  • Spending on public utilities rose by 11.5% to SR63.32 million
  • Total POS transactions in the Kingdom reached SR14.22 billion, a 0.7% decrease from the previous week

RIYADH: Saudis have increased their spending on utilities and jewelry during the first week of December, while food and beverage sales showed a slight decline, according to the latest data from the Saudi Central Bank. 

In the week from Dec. 1 to 7, spending on public utilities rose by 11.5 percent to SR63.32 million ($16.85 million), driven by higher demand for essential services. The sector also saw a rise in transactions, which climbed 4.9 percent to SR803,000. 

Data from the weekly point-of-sale reports showed that jewelry sales recorded the second-largest growth, rising 8.2 percent to SR288.13 million, followed by an uptick in spending on construction materials, which grew by 4.4 percent to SR382 million. 

Total POS transactions in the Kingdom reached SR14.22 billion, a 0.7 percent decrease from the previous week. 

This comes as spending on food and beverages experienced a modest decline. Expenditures fell by 0.8 percent to SR2.20 billion, still maintaining the largest share of total POS value. Restaurant and cafe spending also dipped by 1.4 percent to SR1.97 billion, representing the second-largest category by value. 

Certain sectors saw positive growth, such as electronics, which rose by 2.1 percent to SR221.30 million, and miscellaneous goods and services, which jumped by 3.5 percent to SR1.76 billion. 

Telecommunications spending declined by 3.1 percent, amounting to SR138.84 million. Health sector spending remained relatively flat with a 0.6 percent increase, reaching SR867.53 million. Furniture expenditures grew by 1.5 percent to SR348.52 million, marking the second-smallest increase. 

Riyadh accounted for the largest share of POS transactions, making up 34.7 percent of the total with SR4.94 billion in spending, though this was down 1.1 percent compared to the previous week. 

Jeddah saw a 3.1 percent increase, reaching SR1.92 billion, while Dammam recorded a slight decline of 0.1 percent to SR719.3 million. 

Among smaller cities, Tabuk saw the steepest drop in spending, down 5.1 percent to SR281 million, followed by Hail and Abha, which declined by 2.9 percent to SR234.71 million and 1.3 percent to SR166.55 million, respectively. 

In terms of transaction volumes, Makkah and Jeddah experienced the most significant increases, with transaction numbers up 3.8 percent and 2.3 percent, respectively. Makkah recorded 8.97 million transactions, while Jeddah saw 26.31 million. 

Hail and Tabuk reported the largest decreases, with transactions falling by 1.5 percent 3.93 million and 1.1 percent 4.82 million, respectively. 


COP16: Blended finance crucial to fostering sustainable entrepreneurship, says Egyptian official

Updated 11 December 2024
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COP16: Blended finance crucial to fostering sustainable entrepreneurship, says Egyptian official

  • Amid the global call to ensure a green future, equity funding to startups focused on cleantech and sustainability has fallen this year

RIYADH: The concept of blended financing, where public, private, and corporate funding is provided to startups, is crucial to fostering sustainable entrepreneurship globally, according to an official. 

During COP16 in Riyadh on Dec. 11, the Digitalization and Entrepreneurship Adviser to Egypt’s Ministry of International Cooperation, Tamer Taha, emphasized that startups should focus on attracting investors who are aware of climate change impacts and the necessity to embrace sustainable practices. 

Blended finance integrates philanthropy, government funding, corporates, and private sector investors with different risk and return expectations under one umbrella, which is where they will invest for a particular project. 

Amid the global call to ensure a green future, equity funding to startups focused on cleantech and sustainability has fallen this year. 

According to data obtained by Crunchbase, startups in sustainability, EV, and cleantech categories obtained funding worth $9.6 billion in the first half of this year, representing a decline of 10 percent compared to the same period in 2023.

Speaking at the event in Riyadh, Taha said: “Sustainable entrepreneurship is a business that balances profitability and impact. It will have a long-term vision that is aligned with the sustainable development goals of national and UN SDGs.” 

He added: “The MENA region only receives 1.5 percent of climate VC (venture capital) funding, although it is one of the regions that is most affected by climate change. Encouraging corporates to invest in startups, along with matchmaking some investments from governments and public funds could help growth-stage startups.” 

During the panel discussion, he further highlighted that sustainable entrepreneurship also requires policy coordination, networking, and capacity building. 

Taha added that government regulations, which include giving incentives and subsidies to startups adhering to sustainability initiatives, are also necessary to foster sustainable entrepreneurship. 

He further remarked that lack of technological skills is one of the main challenges startups are facing as they pursue their sustainability journeys. 

According to Taha, forming the right tech-savvy team and maintaining proper business development skills is crucial to resolving such challenges. 

“We have to give more room for technology and innovation. Startups should provide real impactful solutions to really transform all the big pledges that are discussed in these types of conferences. It has to be done through a multi-stakeholder approach,” said Taha. 

During the same session, Hamza Rkha Chaham, co-founder of agricultural services firm SOWIT also echoed similar views and said that investors should be aware of the importance of socio-economic impacts of their investments and give preference to sustainability. 

“Sustainable entrepreneurship is an entrepreneurial initiative that has sustainability at its core, at its DNA,” said Chaham. 

He added: “An entrepreneur should be clear about what you are achieving. Profitability is behind the ability to feed the people. You need to find an investor who has the right temporality in terms of long-term investments, where the environment is being prioritized.” 

Chaham added that adequate government support is pivotal for startups to achieve their sustainability goals. 

The SOWIT co-founder further said that startups, compared to large corporates can embrace sustainability practices more effectively, as they can “quickly deploy teams” and implement actions effectively. 

“In the face of climate change and the current geopolitical situations, if we do not have bolder moves, we will simply not be able to combat the challenges that are evolving,” added Chaham. 

In a separate panel discussion, Mohammed Al-Ariefy, Saudi Arabia’s deputy minister for entrepreneurship at the Ministry of Communication and Information Technology, said that the Kingdom prefers promoting technology aligned with the goals outlined in Vision 2030. 

He added that having a sustainability impact will really “add value to the potential success of startup technology companies.”

“The way we focus is starting from policy and regulations, identifying gaps between policy and regulations. Another thing is capacity building. Access to talent is a key challenge for most of the companies in the technology field, including water and food security,” said Al-Ariefy. 

He added: “Our focus is also on access to finance, to different incentive programs and subsidies. We have the National Technology Development Program, which has served a lot of companies in the food and water security sector.” 

The deputy minister added that the ministry is providing assistance to companies in the technology sector to cross barriers and access more markets.


Oil Updates – crude up on demand hopes from China’s ‘looser’ monetary policy

Updated 11 December 2024
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Oil Updates – crude up on demand hopes from China’s ‘looser’ monetary policy

  • Chinese crude imports grew annually for the first time in seven months in November
  • Crude stocks rose by 499,000 barrels in the week ended on Dec. 6

SINGAPORE: Oil prices rose on Wednesday, with market participants expecting demand to rise in the world’s largest crude importer, after Beijing announced a looser monetary policy to stimulate economic growth in China.

Brent crude futures gained 36 cents, or 0.5 percent, to $72.55 a barrel by 7:30 a.m. Saudi time, while US West Texas Intermediate crude futures rose 36 cents, or 0.5 percent, to $68.95.

China said on Monday it would adopt “appropriately loose” monetary policy in 2025 as Beijing tries to spur its economy with the first easing of its stance in 14 years.

“Oil prices managed to find a footing lately, as stronger policy signals from Chinese authorities have once again rekindled hopes for stronger stimulus measures to come in 2025,” said Yeap Jun Rong, market strategist at IG.

“But price gains are still somewhat constrained, given that market participants still want to see more concrete details beyond the typical positive messaging,” Yeap said.

Chinese crude imports grew annually for the first time in seven months in November, up more than 14 percent from a year earlier.

China’s policy changes, however, may not be able to counter any fallout from some of the trade measures proposed by President-elect Donald Trump, said Mukesh Sahdev, head of oil analysis at Rystad Energy.

“This (China’s policy changes) can only help prevent further downsides at best,” he said.

In the US, crude oil and fuel stocks rose last week, market sources said on Tuesday, citing American Petroleum Institute figures on Tuesday.

Crude stocks rose by 499,000 barrels in the week ended on Dec. 6, the sources said on condition of anonymity. Gasoline inventories rose by 2.85 million barrels, and distillate stocks rose by 2.45 million barrels, they said.

Official data on oil stocks from the US Energy Information Administration is due on Wednesday at 6:30 p.m. Saudi time. Analysts polled by Reuters expect a 900,000-barrel decline in crude and a 1.7 million-barrel increase in gasoline.