Vision 2030 can inspire global solutions to land degradation, energy crisis

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Updated 12 December 2024
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Vision 2030 can inspire global solutions to land degradation, energy crisis

  • UNCCD executive secretary discusses how Saudi Arabia’s strategy can lead global environmental change

RIYADH: Achieving Saudi Arabia’s Vision 2030 will require significant investment in land restoration and renewable energy, as the nation’s ambitious strategy extends beyond national goals, according to a senior executive.

In an interview with Arab News on the sidelines of COP16 in Riyadh, Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, emphasized that the Kingdom’s transformative national strategy should be a global model.

“Vision 2030 is a national vision from Saudi Arabia. But it can only be achieved if we invest more in land restoration. It can only be achieved if we invest more in empowering communities to manage their resources,” Thiaw said.

He further added: “It is certainly an excellent vision proposed by the Kingdom of Saudi Arabia. But it goes beyond in terms of vision, in terms of ambition. It has to be implemented in many other parts of the world.”

Thiaw highlighted the need for innovative solutions to address global food production challenges. For example, he pointed out the importance of doubling food production by 2050 without exhausting limited resources, calling for the adoption of technologies like artificial intelligence, precision agriculture, and water-efficient systems.

He also noted that Vision 2030 stresses the importance of balancing traditional farming techniques with modern technologies to enhance soil productivity, reduce pollution, and avoid the expansion of agricultural land.

“Saudi Arabia is already doing quite a bit in land restoration,” Thiaw said, referencing efforts through institutions like the Saudi Fund for Development, which has active portfolios across Africa, Asia, and Latin America.

“But we all need to do more,” Thiaw added. “That will probably require that the Saudi Fund for Development, as well as other institutions where Saudi Arabia is the main shareholder, like the Islamic Development Bank, the OPEC Fund, and many other institutions, realign their portfolios to match the ambitions of COP16.”

As a G20 member, Thiaw urged the Kingdom to help rally other nations to meet the G20 goal of restoring 50 percent of degraded land by 2040. The focus, he stressed, must not only be on making commitments but also on ensuring their effective implementation.

“Saudi Arabia will be appreciated if it works with its peers from other countries, with South Africa, which is now the current presidency of G20, and then the future presidencies, as well as all members of the G20,” Thiaw said.

Thiaw also emphasized the critical importance of integrating traditional methods, like underground irrigation, with modern technologies such as desalination and renewable energy to support sustainable development, especially in arid regions. These combined solutions can address challenges like water scarcity and energy demands while promoting economic growth.

“This is where you need new technologies and combine them with the traditional technologies, including the underground irrigation that has been known here for millennia, and so we can use new technologies to make additional water available,” Thiaw said.

He added: “I visited the Saudi pavilion here. I just could not believe what I saw, and from 300 megawatts just a few years back, there are now 44 gigawatts moving to 80 GW. I was stunned!”

Thiaw explained that Saudi Arabia’s progress demonstrates how integrating traditional and new technologies can lead the way in energy transitions, land management, and water accessibility, creating a better future for all.

Key outcomes

Thiaw outlined some of the key outcomes expected from COP16, including decisions on proactive drought resilience strategies to prepare communities, businesses, and governments for future droughts rather than simply reacting to crises.

An additional focus is scaling up commitments to restore degraded land, with a global reserve of 1.5 billion hectares of damaged land, and reversing the trend of losing fertile soil annually — an area the size of Egypt.

He stressed that financing is central to these efforts: “We have indicated in our reports that the world needs to invest $1 billion per day. $1 billion per day needs to be invested in land restoration worldwide. Now that is a huge figure. It’s not small. This is not necessarily only public funds, but also private funds.”

Thiaw added: “Not only public funds, but also private funds. The private sector must invest to sustain productivity, while harmful taxpayer-funded subsidies should be redirected toward environmentally friendly and land-friendly activities.”

Collaboration with Saudi Arabia

To address these pressing challenges, Thiaw expressed the UNCCD’s eagerness to collaborate with Saudi Arabia in integrating advanced technologies with traditional practices.

“Our ambition is to help countries transition effectively, and Saudi Arabia is uniquely positioned to lead this effort,” Thiaw said, highlighting the Kingdom’s capacity, energy, and financial resources.

He added: “Now, there is a lot of discussion at the moment under the climate negotiations to see whether we can have net zero in terms of emissions. But if you are to achieve net zero in terms of emissions, it is not only emissions coming from industry, but emissions coming from land use, because land use is the second-largest emitter.”

Thiaw emphasized that degrading land increases carbon emissions, whereas restoring land acts as a natural solution by capturing carbon and returning it to the soil, thus helping to mitigate climate change.

The progress showcased at the Saudi pavilion highlights how merging traditional practices with advanced technologies can pave the way for sustainable energy transitions, better land and water management, and long-term environmental and economic stability. This model serves as a benchmark for addressing resource challenges in arid regions and other vulnerable areas globally.


GCC growth forecast raised to 4.4% amid oil rebound, diversification push: ICAEW 

Updated 6 sec ago
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GCC growth forecast raised to 4.4% amid oil rebound, diversification push: ICAEW 

RIYADH: Gulf Cooperation Council economies are expected to grow 4.4 percent in 2025, up from an earlier forecast of 4 percent, as rising oil output and resilient non-oil sector activity offset global trade headwinds. 

In its latest economic update, prepared with Oxford Economics, the Institute of Chartered Accountants in England and Wales said Saudi Arabia and the UAE will lead regional growth despite weaker crude prices and rising geopolitical uncertainty. 

The revision comes amid stronger-than-expected gains in OPEC+ production and continued investment in infrastructure, tourism, and technology. In May, the International Monetary Fund said that the GCC region’s economy will grow by 3 percent in 2025, driven by gains in the non-oil sector. 

The analysis by ICAEW affirms the progress of the economic diversification efforts undertaken by GCC member states, including Saudi Arabia and the UAE, aimed at strengthening their non-oil sectors and reducing reliance on crude revenues. 

Hanadi Khalife, head of Middle East at ICAEW, said: “The GCC economies are showing remarkable adaptability amid shifting global trade dynamics.” 

She added: “Investments in tourism, technology, and infrastructure continue to pay dividends, strengthening resilience and laying the groundwork for long-term growth.” 

The report noted Brent crude is expected to average $67.3 a barrel in 2025, increasing fiscal pressure across the bloc. Qatar and the UAE are likely to maintain budget surpluses, underscoring diverging fiscal positions within the region. 

Scott Livermore, economic adviser at ICAEW and chief economist and managing director at Oxford Economics Middle East, said the upgraded GCC economic growth forecast was due to faster OPEC+ output increases and sustained non-oil momentum in key economies like Saudi Arabia and the UAE. 

“While uncertainty and trade shifts may place pressures on fiscal policy, the region’s two key economies are expected to continue to progress toward economic diversification and attract global capital at an accelerated pace,” added Livermore. 

The impact of the US 10 percent tariff on imports from GCC countries is expected to be limited, given the region’s low US export exposure and the exemption of energy products. 

Overall, non-oil sectors in the GCC are forecast to grow by 4.1 percent in 2025, supported by strong domestic demand, investment momentum, and diversification initiatives. 

ICAEW added that the region is also favorably positioned to absorb any trade rebalances resulting from tariff headwinds and geopolitical tensions. 

Saudi Arabia outlook 

Saudi Arabia’s economy is expected to witness growth of 5.2 percent in 2025, according to ICAEW. 

The non-oil sector in the Kingdom is projected to grow by 5.3 percent in 2025, while the oil economy is also forecast to expand by 5.2 percent this year. 

The report added that Saudi Arabia’s oil production is averaging 9.7 million barrels per day, while non-oil sectors, including construction and trade, are contributing to the ongoing growth momentum. 

ICAEW further stated that Saudi Arabia recorded an economic growth of 3.4 percent year on year in the first quarter, driven by a 4.9 percent expansion in non-oil activities. 

“The rebasing of national accounts boosted the non-oil sector’s share of GDP, reinforcing the Kingdom’s diversification drive. However, weaker oil prices are expected to widen the fiscal deficit to 3.4 percent of the gross domestic product,” said ICAEW. 

In May, a separate report released by the General Authority for Statistics revealed that Saudi Arabia’s economy expanded by 2.7 percent year on year in the first quarter, driven by strong non-oil activity. 

Commenting on the GDP figures at that time, Minister of Economy and Planning Faisal Al-Ibrahim, who also chairs GASTAT’s board, said the contribution of non-oil activities to the Kingdom’s GDP reached 53.2 percent — an increase of 5.7 percent from previous estimates. 

The minister added that Saudi Arabia’s economic outlook remains positive, supported by structural reforms and high-quality, state-led projects across various sectors. 

The ICAEW report noted that despite potential risks, investor sentiment remains strong, with credit rating agency S&P Global upgrading the Kingdom’s credit rating to A+. 

In March, S&P Global said that Saudi Arabia’s strong rating is driven by the economic and social transformation taking place in the Kingdom. 

In February, Fitch Ratings also affirmed Saudi Arabia’s Long-Term Foreign-Currency Issuer Default Rating at ‘A+’ with a stable outlook, citing the Kingdom’s strong fiscal and external balance sheets. 

UAE growth driven by investments 

The UAE economy is projected to expand by 5.1 percent in 2025, driven by a recovery in oil output and a 4.7 percent rise in non-oil GDP, according to ICAEW. 

“Tourism remains a key growth driver, with international visitor spending expected to contribute nearly 13 percent of GDP in 2025. In the first quarter, Dubai welcomed 5.3 million international visitors, up 3 percent year on year, consolidating its position as a leading tourism hub,” said the report. 

Strategic investments are also fueling momentum in the UAE, including a $1.4 trillion investment pipeline and new AI-focused collaborations following President Trump’s visit to the Emirates in May. 

Sheikh Mohamed bin Zayed, president of the UAE, on the sidelines of Trump’s visit, said that this planned $1.4 trillion investment in the US over the next decade underscores a strong partnership with Washington. 

The UAE president added that investments would span critical sectors such as technology, artificial intelligence, and energy. 

“While rising tariffs are likely to suppress global inflation, a weaker US dollar may push up import prices in the UAE — particularly from non-dollar trade partners — offsetting some of the disinflationary effects,” concluded ICAEW. 

Earlier this month, the Central Bank of the UAE revealed that the Emirates’ GDP reached 1.77 billion dirhams ($481.4 million) in 2024, recording 4 percent growth, with non-oil sectors contributing 75.5 percent of the total. 

CBUAE added that the Emirates is expected to witness economic growth of 4.5 percent in 2025, before accelerating further to 5.5 percent in 2026. 


Oil Updates — prices rise further as Israel-Iran extends into fourth day

Updated 16 June 2025
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Oil Updates — prices rise further as Israel-Iran extends into fourth day

HONG KONG: Oil prices extended gains Monday as Israel and Iran pounded each other with missiles for a fourth day and threatened further attacks, stoking fears of a lengthy conflict that could reignite inflation.

Gold prices also rose back toward a record high thanks to a rush into safe havens, but equities were mixed amid hopes that the conflict does not spread through the Middle East.

Investors were also gearing up for key central bank meetings this week, with a particular eye on the US Federal Reserve and Bank of Japan, as well as talks with Washington aimed at avoiding Donald Trump’s sky-high tariffs.

Israel’s surprise strike against Iranian military and nuclear sites on Friday — killing top commanders and scientists — sent crude prices soaring as much as 13 percent at one point on fears about supplies from the region.

Analysts also warned that the spike could send inflation surging globally again, dealing a blow to long-running efforts by governments and central banks to get it under control and fanning concerns about the impact on already fragile economies.

“The knock-on impact of higher energy prices is that they will slow growth and cause headline inflation to rise,” said Tony Sycamore, a market analyst at IG.

“While central banks would prefer to overlook a temporary spike in energy prices, if they remain elevated for a long period, it may feed through into higher core inflation as businesses pass on higher transport and production costs.

“This would hampercentral banks’ ability to cut interest rates to cushion the anticipated growth slowdown from President Trump’s tariffs, which adds another variable for the Fed to consider when it meets to discuss interest rates this week.”

Both main oil contracts were up around one percent in Asian trade.

But Morningstar director of equity research Allen Good said: “Oil markets remain amply supplied with OPEC set on increasing production and demand soft. US production growth has been slowing, but could rebound in the face of sustained higher prices.

“Meanwhile, a larger war is unlikely. The Trump administration has already stated it remains committed to talks with Iran.

“Ultimately, fundamentals will dictate price, and they do not suggest much higher prices are necessary. Although the global risk premium could rise, keeping prices moderately higher than where they’ve been much of the year.”

Tokyo closed 1.3 percent higher, boosted by a weaker yen, while Hong Kong reversed early losses and Shanghai, Seoul, Singapore and Wellington also advanced.

Taipei, Jakarta and Manila retreated while Sydney was flat.

London, Paris and Frankfurt were all higher in early trade.

Gold, a go-to asset in times of uncertainty and volatility, rose to around $3,450 an ounce and close to its all-time high of $3,500.

There was little major reaction to data showing China’s factory output grew slower than expected last month as trade war pressures bit, while retail sales topped forecasts.

Also in focus is the Group of Seven summit in the Canadian Rockies, which kicked off Sunday, where the Middle East crisis will be discussed along with trade in light of Trump’s tariff blitz.

Investors are also awaiting bank policy meetings, with the Fed and BoJ the standouts.

Both are expected to stand pat for now but traders will be keeping a close watch on their statements for an idea about the plans for interest rates, with US officials under pressure from Trump to cut.

The Fed meeting “will naturally get the greatest degree of market focus,” said Chris Weston at Pepperstone.

“The Fed should remain sufficiently constrained by the many uncertainties to offer anything truly market-moving and the statement should stress that policy is in a sound place for now,” he added.

In corporate news, Nippon Steel rose more than three percent after Trump on Friday signed an executive order approving its $14.9 billion merger with US Steel, bringing an end to the long-running saga.


Oil and gas important in times of conflict, Saudi Aramco CEO says

Updated 16 June 2025
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Oil and gas important in times of conflict, Saudi Aramco CEO says

KUALA LUMPUR: The importance of oil and gas can’t be underestimated at times when conflicts occur, something that was currently being seen, the head of Saudi oil giant Aramco told an energy conference on Monday.

Aramco CEO Amin Nasser delivered his speech to the Energy Asia Conference in Kuala Lumpur by a video link.

Oil prices jumped last week after Israel launched strikes against Iran on Friday that it said were to prevent Tehran from building an atomic weapon. The fighting intensified over the weekend.

“(History has) shown us that when conflicts occur, the importance of oil and gas can’t be understated,” Nasser said.

“We are witnessing this in real time, with threats to energy security continuing to cause global concern,” he said, without directly mentioning the fighting between Israel and Iran.

Nasser also said that experience had shown that new energy sources don’t replace the old, but added to the mix. He said the transition to net-zero emissions could cost up to $200 trillion, and renewable sources were not meeting current demand.

“As a result, energy security and affordability have at last joined sustainability as the transition’s central goals,” he said.

Aramco is a key part of the Saudi economy, generating a bulk of the Kingdom’s revenue through oil exports and funding its ambitious Vision 2030 diversification drive.


ACWA Power advances $1.8bn capital increase plan to boost global expansion, says CFO


Updated 15 June 2025
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ACWA Power advances $1.8bn capital increase plan to boost global expansion, says CFO


RIYADH: Saudi utility giant ACWA Power is moving forward with its SR7 billion ($1.8 billion) capital increase as part of a broader strategy to expand its footprint in energy transformation, water desalination, and green hydrogen production, according to its chief financial officer.

In an interview with Al-Ekhbariya, Abdulhameed Al-Muhaidib described the capital raise as a critical step to reinforce the company’s leadership both domestically and internationally in sustainable infrastructure.

ACWA Power’s investment portfolio currently stands at around SR400 billion, encompassing over 78 gigawatts of production capacity and more than 9.5 million cubic meters per day in water desalination capacity. In line with long-term objectives, the company’s board approved a plan two years ago to triple assets under management to over SR937.5 billion by 2030.

The initiative also aligns with Saudi Arabia’s national goal of achieving a balanced energy mix by 2030, targeting an equal split between gas and renewable sources for electricity generation.

“The company decided to increase its capital through a rights issue rather than expanding into debt markets, with the aim of strengthening its financial position and enhancing credit flexibility. A large portion of the proceeds will be used to expand its project portfolio both inside and outside the Kingdom,” said Al-Muhaidib.

He noted that 60 percent of ACWA Power’s current investments are located in the Kingdom, with the remaining 40 percent spread across international markets. Between 75 percent and 85 percent of the new capital will be allocated to greenfield projects, while acquisitions will account for no more than 20 percent.

“ACWA Power’s infrastructure projects rely primarily on debt, with shareholders’ equity covering 20 percent to 25 percent of the financing structure. The company will continue this financing strategy while maintaining net debt at approximately SR20 billion, despite the significant growth expected through 2030,” he added.

Highlighting the company’s geographical expansion, Al-Muhaidib said ACWA Power added new projects worth SR34 billion in 2024 across Saudi Arabia, Egypt, Azerbaijan, Uzbekistan, and China.

He also pointed out the firm’s active presence in China, with more than 90 employees based in its Shanghai office to support growth in that market.

ACWA Power successfully achieved nine financial closings in 2024, amounting to SR34.6 billion. The CFO said a dedicated internal team has been established to streamline project execution from inception to operation.

He confirmed that the Capital Market Authority has approved the capital increase, with the final offering price set to be announced during the company’s general assembly on June 30.

“Seventy-seven percent of shareholders have submitted their subscription pledges,” Al-Muhaidib noted, adding that the high participation rate underscores investor confidence in the company’s long-term strategy.

ACWA Power reported a net profit of SR1.75 billion in 2024, a 5.74 percent increase year on year, according to a Tadawul filing issued in February. The gain was attributed to higher revenues from operations and maintenance, increased electricity sales, and improved earnings from equity-accounted investees, capital recycling, and net finance income.


Closing Bell: Saudi main index retreats to 10,731.59

Updated 15 June 2025
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Closing Bell: Saudi main index retreats to 10,731.59

  • Parallel market Nomu lost 393.70 points to settle at 26,404.44
  • MSCI Tadawul Index dropped 11.64 points, closing at 1,380.40

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Sunday, declining 109.35 points, or 1.01 percent, to close at 10,731.59.

Trading turnover reached SR5.15 billion ($1.37 billion), with only 25 stocks advancing while 233 declined.

The parallel market, Nomu, also ended the session in negative territory, losing 393.70 points, or 1.47 percent, to settle at 26,404.44. A total of 24 stocks rose while 70 registered losses. The MSCI Tadawul Index dropped 11.64 points, or 0.84 percent, closing at 1,380.40.

Saudi Research and Media Group led the day’s gainers, with its share price climbing 9.89 percent to SR155.60. Dr. Sulaiman Al Habib Medical Services Group rose 3.82 percent to SR261, and Jazan Development and Investment Co. advanced 3.32 percent to SR10.28.

On the losing side, MBC Group Co. posted the steepest decline, falling 9.99 percent to SR36.95. Modern Mills for Food Products Co. slipped 6.66 percent to SR30.85, while Wafrah for Industry and Development Co. dropped 6.27 percent to SR26.15.

On the announcements front, Tabuk Agricultural Development Co. signed an agreement with the National Electricity Transmission Co., a subsidiary of Saudi Electricity Co., under the Kingdom’s Liquid Displacement Program.

The project aims to cut emissions by replacing liquid fuels used in power generation at the company’s facilities with electricity, while improving operational reliability without imposing significant financial burdens.

Separately, Professional Medical Expertise Co., also known as ProMedEx, signed a memorandum of understanding with Zhende Medical Co., Ltd and MedSurg FZ-LLC to establish a joint manufacturing venture in Saudi Arabia.

The facility will produce medical supplies tailored to the domestic market and the wider region. Under the agreement, Zhende Medical will hold a 51 percent stake in the new entity, ProMedEx will own 35 percent, and MedSurg will hold the remaining 14 percent. Capital details will be disclosed at a later stage.