Sustainable finance key to driving climate adaptation, panel told

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Abdullah Al-Moqbel, director of the sustainability department at CMA, participated in a panel discussion at the Sustainability Forum Middle East in Manama. (AN Photo/Ghadi Joudah)
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Updated 29 January 2025
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Sustainable finance key to driving climate adaptation, panel told

  • Kingdom to set new guidelines for green sukuk growth, official tells Manama forum
  • Abdullah Al-Moqbel: Sustainable finance is a key driver and the main engine for developing sustainability practices among all economies

MANAMA: The use of environmental sukuk and other debt instruments is surging in the Kingdom, with total issuances exceeding SR8 billion ($2 billion), a Capital Market Authority official has said.

Abdullah Al-Moqbel, director of the authority’s sustainability department, was speaking on Tuesday during a panel discussion titled “Climate Risk and Financial Disclosure: Harmonizing New Frameworks and Implementation” at the Sustainability Forum Middle East in Manama, Bahrain.

He highlighted the critical role of sustainable finance in facilitating the transition toward climate adaptation and sustainable development.

Al-Moqbel added: “Sustainable finance is a key driver and the main engine for developing sustainability practices among all economies. It will be even more critical during the transition phase.”

He also highlighted the importance of collaboration with stakeholders in advancing corporate sustainability strategies.

“In Saudi Arabia, we are working on implementing a corporate sustainability strategy. Within this effort, we have a platform that facilitates multi-sided communication with various partners,” Al-Moqbel said.

Market participants and listed companies are key partners in this process, and their engagement is crucial for enhancing the quality of initiatives, he added.

Ultimately, corporate entities, not regulators, will implement the strategy, Al-Moqbel said.

Meanwhile, Alya Al-Omran, head of capital markets supervision at the Central Bank of Bahrain, shared her country’s approach to sustainability in the financial sector.

“We have issued our ESG module, and the way we introduced this new module to our licensees and listed companies is by mandating them,” she said.

Al-Omran said that the adoption of the rules in Bahrain is mandatory.

“Maybe it is a very new way of introducing such rules, as it is a relatively new concept here, but we chose to do it this way to kindly force companies to adopt sustainability and integrate it into their operations,” Al-Omran added.

Mohammad Essa, head of the corporate governance section at the Securities and Commodities Authority in the UAE, discussed the emirates’ efforts to promote green bonds and sustainable finance.

Essa said that the UAE issued regulations in 2023 regarding green and sustainability-related bonds.

“To support this initiative, we have also exempted companies planning to list these bonds or sukuk on the financial market from the registration fees imposed by the authority.”

This initiative could increase the number of bonds and sukuk listed on the local financial market, he added.

“As of the latest figures at the end of 2023, we reached $14 billion in green bonds and sukuk issued by the authority. Of course, this number has increased currently,” said Essa.

While progress in Saudi Arabia, Bahrain and the UAE is evident, Al-Moqbel acknowledged the global disparity in sustainable finance adoption.

“Although green issuance worldwide has surpassed $850 billion, it represents just 3 percent of total conventional bond issuances,” he said.

Despite this, the compound annual growth rate for green financial products is double that of conventional bonds, underscoring the promising future of such instruments, Al-Moqbel added.

Recognizing this potential, the Kingdom’s Capital Market Authority is taking proactive regulatory steps to support and expand the market for sustainable finance in the Kingdom.

“We are currently drafting guidelines for issuing green, social and sustainability-linked sukuk and debt instruments in the Saudi market,” Al-Moqbel said.

These guidelines, expected to be voluntary, aim to help companies comply with disclosure requirements and align with international principles, such as those set by the International Capital Market Association.

The overarching goal is to increase the issuance of these financial products in local and regional markets, said Al-Moqbel.

He also addressed the need to raise awareness among local and regional investors.

“Most of the demand for these products currently comes from international investors. Raising awareness is essential to trigger interest from local and regional investors,” he said.


World Defense Show organizers announce expanded 3rd edition

Updated 52 min 26 sec ago
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World Defense Show organizers announce expanded 3rd edition

  • Next edition will be held under the theme The Future of Defense Integration, showcasing the latest technology in air, land, sea, and space
  • Organized by Saudi Arabia’s General Authority for Military Industries, the event is a key part of the Kingdom’s ambition to localize 50 percent of its defense spending by 2030

RIYADH: Organizers of Saudi Arabia’s World Defense Show have announced an expanded exhibition area with several new sections for its third edition, which will be held in February 2026.

An additional hall will increase floor space to a total of 273,000 square meters, more than 58 percent larger than the first edition in 2022, the Saudi Press Agency reported.

More than 65 percent of the exhibition space is already sold out, according to the report.

The next edition will be held under the theme “The Future of Defense Integration,” showcasing the latest technology in air, land, sea, and space.

Organized by Saudi Arabia’s General Authority for Military Industries, the event is a key part of the Kingdom’s ambition to localize 50 percent of its defense spending by 2030.

The next edition will be the most successful yet, said the event’s CEO Andrew Percy, as reported by SPA.

There will be more local and international participation, and the exhibition will focus more closely on technology including unmanned and marine defense systems.

New programs in the upcoming edition will include a defense and security industry lab, and an exhibition of future technologies.

A Saudi supply chain zone will allow local small and medium-sized enterprises to network with key players in global supply chains.

Positive feedback from the last two editions exceeded expectations, Percy said, allowing organizers to set new ambitious goals for this upcoming event.

The World Defense Show was first held in 2022 on the outskirts of the Saudi capital Riyadh.

It attracted 600 exhibitors from 42 countries, 82 military and defense delegations, and 65 thousand visitors from 85 countries, according to GAMI.

The second edition in 2024 saw over 106,000 people attend, with 441 delegations from 116 countries.

A total of 61 purchase contracts worth SR26 billion ($6.9 billion) were signed, according to GAMI.


Saudi Arabia pledges innovation in road safety at Morocco conference

Updated 18 February 2025
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Saudi Arabia pledges innovation in road safety at Morocco conference

  • Saudi interior minister, Moroccan PM discuss security cooperation
  • Kingdom reaffirms its focus on reducing traffic fatalities through tech, collaboration 

RIYADH: Saudi Arabia’s Interior Minister Prince Abdulaziz bin Saud bin Naif met with Moroccan Prime Minister Aziz Akhannouch in Marrakesh on Tuesday.

Their meeting, held on the sidelines of the Fourth Global Ministerial Conference on Road Safety, reviewed ongoing security cooperation and discussed various issues of mutual interest.

Saudi Ambassador to Morocco Sami Al-Saleh, Moroccan Interior Minister Abdelouafi Laftit, and several senior officials attended the meeting, the Saudi Press Agency reported.

In his speech at the conference, Prince Abdulaziz commended Morocco’s efforts in hosting the event, highlighting its crucial role in fostering cooperation on road safety, protecting lives, and addressing challenges in the field.

He reaffirmed Saudi Arabia’s strong commitment to road safety, recognizing it as a key public health, security, and economic priority.

Prince Abdulaziz highlighted the alarming global impact of road accidents, with over 1.3 million fatalities annually and millions more suffering severe injuries that hinder personal and national progress.

Stressing the need for effective strategies, he called for the development of mechanisms to reduce injuries and work toward a future with fewer road casualties.

Prince Abdulaziz underscored the profound social, economic, and health impact of traffic-related injuries, emphasizing the Kingdom’s determination to tackle these challenges through innovation and commitment.

He reaffirmed that, under Vision 2030, Saudi Arabia is dedicated to creating sustainable and safer road environments in alignment with global road safety objectives and the UN Decade of Action for Road Safety 2021–2030.

Prince Abdulaziz highlighted the Kingdom’s traffic safety initiatives, including a ministerial-level committee that has contributed to a more than 50 percent reduction in traffic-related fatalities over the past seven years.

He also emphasized the transformative role of technology in road safety, stating that Saudi Arabia will leverage AI-driven traffic management systems and IoT solutions to reduce fatalities and injuries. These innovations will enhance urban mobility, creating safer and more efficient road networks across the Kingdom.


Historic Baran village draws winter tourists

Updated 18 February 2025
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Historic Baran village draws winter tourists

RIYADH: Nestled among the mountainous slopes of Qilwah governorate in Baha, the village of Baran stands as a captivating cultural landmark and boasts over 500 years of history.

It is a draw for tourists and history enthusiasts, particularly in winter when the weather is refreshing and the surrounding landscapes are at their most picturesque, according to the Saudi Press Agency.

Saeed Al-Zahrani, a 73-year-old resident, said the village was constructed from stone, sidr wood and white quartz. Doors and windows are adorned with intricate architectural engravings, highlighting Baran’s unique heritage.

Atiya Al-Zahrani, another resident, said the village consisted of several multi-story buildings, ranging from three to four floors. At its heart are expansive agricultural terraces, which have long served as residents’ primary livelihoods, providing fertile soil for growing crops.

In a recent effort to preserve the Kingdom’s cultural heritage, the Heritage Commission has added 25 new sites, including Baran village, to the National Register of Architectural Heritage.

This initiative is part of the commission's broader efforts to archive and digitize heritage sites across the country, ensuring conservation of its rich legacy.


Civil Defense warns of thunderstorms until Thursday

Updated 18 February 2025
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Civil Defense warns of thunderstorms until Thursday

RIYADH: The General Directorate of Civil Defense has issued a weather warning for most regions of Saudi Arabia, forecasting continued thunderstorms until Thursday.

Light to moderate rain is expected in the Makkah region, with potential flash floods, hail and strong downdrafts affecting areas such as Taif, Maysan, Al-Muwayh, Turbah, Al-Lith, Al-Qunfudah, Jeddah and Rabigh.

According to the directorate, the Riyadh region may experience moderate to heavy rain, flash floods, hail and strong downdrafts, impacting the capital and other cities, including Diriyah, Dhurma, Al-Muzahimiyah, Shaqra, Al-Zulfi, Al-Majmaah, Ramah and Al-Kharj.

Moderate to heavy rain is also expected in the Eastern Province, Qassim, Hail and the Northern Borders, while Jouf, Madinah and Baha may see light to moderate rainfall.

The Civil Defense has advised the public to take necessary precautions and avoid flood-prone areas such as valleys.

It also urged people to stay updated on weather conditions through its official channels and social media platforms.


KSrelief sends food to Libya, Uganda

Updated 18 February 2025
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KSrelief sends food to Libya, Uganda

RIYADH: The Kingdom’s aid agency KSrelief has distributed 600 food parcels to 2,907 people in the Libyan town of Suluq, the Saudi Press Agency reported on Tuesday.

This distribution is a part of the urgent food-assistance project for families affected by Cyclone Daniel in Libya, conducted in cooperation with the Libyan Red Crescent.

KSrelief also sent 25 tonnes of dates recently to Uganda.

Saudi Arabia’s government, through KSrelief, continues to provide aid to vulnerable communities across the world.