Saudi minister and US counterpart agree road map for cooperation in energy sector

Saudi minister and US counterpart agree road map for cooperation in energy sector
The Saudi minister of energy, Prince Abdulaziz bin Salman, and the US secretary of energy, Jennifer Granholm, on Wednesday agreed a road map for cooperation between the countries in the sector. (X/ @MoEnergy_Saudi)
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Updated 15 May 2024
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Saudi minister and US counterpart agree road map for cooperation in energy sector

Saudi minister and US counterpart agree road map for cooperation in energy sector
  • During meeting in Riyadh, Prince Abdulaziz bin Salman and Jennifer Granholm discuss ways to enhance energy-related collaborations
  • They also review Kingdom’s efforts to tackle climate change through local and regional initiatives, including the Saudi and the Middle East green initiatives

RIYADH: The Saudi minister of energy, Prince Abdulaziz bin Salman, and the US secretary of energy, Jennifer Granholm, on Wednesday agreed a road map for cooperation between the countries in the sector.
During a meeting in Riyadh, they also discussed ways in which collaborations might be enhanced in energy-related fields such as carbon management, clean hydrogen, nuclear energy, electricity and renewables, innovation, energy-sector supply chain resilience, and energy efficiency. The two countries signed a Partnership Framework for Advancing Clean Energy in July, 2022.
The officials also reviewed the Kingdom’s efforts to tackle climate change through local and regional initiatives based on a circular carbon economy, including the Saudi and the Middle East green initiatives, the ministry said.
The new road map represents a joint plan for energy cooperation that establishes a timeline and outlines critical projects for collaboration, officials said.
Both sides agreed to engage in various activities to implement the road map, including: exchanges of knowledge on policies related to the joint plans, such as standards and regulatory frameworks; enhancement of joint research and development, especially in the field of new technologies; and the building of human capital through training and exchanges of expertise.


Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan

Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan
Updated 30 October 2024
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Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan

Saudi Arabia targeting 40% female workforce participation by 2030: Al-Jadaan

RIYADH: Saudi Arabia aims to achieve 40 percent female workforce participation in the Kingdom by the end of this decade, having already surpassed its Vision 2030 target of 30 percent, according to a senior official. 

During the eighth edition of the Future Investment Initiative in Riyadh on Oct. 30, Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan said that 45 percent of the small and medium enterprises in the Kingdom are headed by women. 

Strengthening the role of females in the country’s labor force and bridging the gender gap is one of the key goals outlined in the Kingdom’s economic diversification Vision 2030 program. 

To propel this plan, Saudi Arabia also organized the HERizon Summit on Oct. 28 under the theme “Invest in Women,” where experts discussed ways to make females a formidable force in the global employment sector. 

“Moving from almost 17 percent of female workforce participation when we started Vision 2030, we are currently at 35 percent. And our target for 2030 was 30 percent,” said Al-Jadaan. 

He added: “If you look at women’s participation today, not only as employees but also as entrepreneurs, it is significant. We doubled the number of SMEs in the last seven years. What is interesting is that 45 percent of these are female-led SMEs.” 

According to Al-Jadaan, the rise in female workforce participation is visible in various areas, including consumption and household income. 

“We are now targeting female workforce participation in the workforce to more than 35 percent or around 40 percent by 2030. And I think we will be able to achieve that,” Al-Jadaan said. 

He further said that women in Saudi Arabia are also making their presence felt in new sectors like tourism. 

During the recent HERizon Summit, Princess Reema bint Bandar, the Kingdom’s ambassador to the US also echoed similar views, highlighting that Vision 2030 has reshaped the lives of women in the nation, as regulatory reforms helped females pursue more opportunities in the public and private sectors. 

Vision 2030 progress

During the speech, Al-Jadaan also outlined the country’s Vision 2030 progress and underlined that the government’s economic diversification program has started reaping the results. 

“Saudi Arabia’s non-oil gross domestic product now represents 52 percent of our economy. It is very significant for a country like Saudi Arabia. The unemployment rate among Saudi nationals now stands at 7.1 percent. We have a target of 7 percent in 2030, and we are about to hit that target,” said the finance minister. 

Al-Jadaan added that almost 87 percent of the Kingdom’s Vision 2030 targets are either achieved or on track, and the nation is currently working to materialize the remaining 13 percent. 

The finance minister added that the government is pursuing the Vision 2030 goals without pressuring the Kingdom’s economy and ensuring stability. 

“We are trying to make sure that our plans are very synchronized together. We want to make sure that we don’t have too much leakage from the economy,” said Al-Jadaan. 

He added: “If you do too much at the same time and do not allow the economy to grow with you, you could actually have a lot of leakage from your spending by importing rather than actually manufacturing in the country. We are monitoring that and recalibrating our plans, and we are actually successful so far.” 

According to Al-Jadaan, investment inflows to Saudi Arabia remain resilient despite geopolitical tensions, as the Kingdom offers a safe and stable environment for business people. 

“Investors are investing in Saudi Arabia despite all the geopolitical tensions because Saudi plays a very important role as the anchor of stability. What the investors want is that stability. What the investors want is to be a part of the national transformation that is taking place in a country which is as big as Saudi Arabia, which is the largest country in the region,” said the finance minister. 

Despite this strong outlook, Al-Jadaan also outlined some challenges Saudi Arabia faces as it pursues its Vision 2030 journey, including a lack of human resources.

“We are actually not shying away from challenges. Challenges related to human resources and the ability to execute. And we want to make sure that we bring up more execution capacity. We want to make sure that we don’t overheat the economy,” he said. 

Global outlook

During the talk, Al-Jadaan said that the global economy still faces obstacles despite an expected soft landing with inflation rates under control. 

He also emphasized that international cooperation and multilateralism are needed to tackle global economic challenges at a time when the world is grappling with geopolitical tensions and wars. 

“There are countries which are struggling. Sovereign debt is a serious challenge that we discuss extensively globally. Fragmentation is getting more serious. Under the current circumstances of serious geopolitical uncertainties, we need to build bridges rather than really burn them,” said Al-Jadaan. 

He added: “Global communities need to come together. There are serious challenges around the world that cannot be resolved by one country alone. Therefore, a cooperative approach is necessary. Even though there are challenges, still the global community feels the importance of multilateralism.” 

The minister further said that Saudi Arabia plays a very important role as the anchor of stability globally, becoming a torchbearer of economic reforms in the Middle East. 

“We are trying to make sure that we play a role model for the region. And the countries in the region see what we are doing and focussing on our people and our economy, and hopefully, a call for them to do the same,” he said. 


Saudi Aramco partners with Petrovietnam and Taulia  

Saudi Aramco partners with Petrovietnam and Taulia  
Updated 30 October 2024
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Saudi Aramco partners with Petrovietnam and Taulia  

Saudi Aramco partners with Petrovietnam and Taulia  

RIYADH: Saudi energy giant Aramco has agreed to work with Vietnam Oil and Gas Group, known as Petrovietnam, in storage, supply, and trading across the companies’ energy and petrochemical segments.

Formalized during Vietnamese Prime Minister Pham Minh Chinh’s official visit to Saudi Arabia and signed at the eighth Future Investment Initiative in Riyadh, the Collaboration Framework Agreement aims to explore initiatives that could optimize operations and drive value, according to a press release. 

Mohammed Al-Qahtani, Aramco’s downstream president, said: “We look forward to exploring multiple opportunities with Petrovietnam that complement Aramco’s global downstream ambitions.” 

Petrovietnam CEO Le Ngoc Son emphasized the strategic importance of the agreement, calling it “evidence of the strong cooperative relationship between Petrovietnam and Aramco.” 

In a related development, Aramco has also partnered with Taulia, a SAP-owned fintech company specializing in working capital management solutions.  

Supported by the Saudi Industrial Development Fund, the partnership will create one of the world’s largest supply chain financing programs, designed to enhance liquidity for Aramco’s suppliers.  

This program aims to provide a cost-effective financing alternative, improve cash flow forecasting, and strengthen Aramco’s supply chain resilience. 

Ziad Al-Murshed, Aramco’s chief financial officer and executive vice president of finance, highlighted the strategic importance of the new fintech solution, saying: “At Aramco, we recognize the crucial role our suppliers play in contributing to our business continuity.”  

He added that the platform will offer suppliers “a unique and competitive financing opportunity” and allow banks to participate as finance providers, “enhancing the solution’s scale and viability.”


New entrant in Saudi EV market aims to empower young locals as future industry leaders

New entrant in Saudi EV market aims to empower young locals as future industry leaders
Updated 30 October 2024
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New entrant in Saudi EV market aims to empower young locals as future industry leaders

New entrant in Saudi EV market aims to empower young locals as future industry leaders

JEDDAH: Saudi Arabia’s ambitious drive to electrify its transportation sector is set to gain momentum with the entry of Al-Futtaim Electric Mobility Co., which plans to generate over 1,000 local jobs and train the Kingdom’s youth. 

Speaking to Arab News during the Jeddah International Motor Show, managing director Hasan Nergiz said that any Saudi aspiring to lead in the electric vehicle industry can learn how to do so within the Kingdom. 

“Previously, we had to send people to China, Dubai, or other parts of the world for training. We decided to make a local investment instead, training individuals in the Kingdom. This qualified workforce will become the future leaders of the electric vehicle market,” he said. 

“This is coming through our sales force, from headquarters, master technicians, technicians, and the entire after-sales team. So, our commitment is creating job opportunities,” Nergiz added. 

He explained that these would be EV-specific jobs. “In the world, these skills are very sparse. This is exactly the reason why we are going to open our first technical center in Riyadh with the simulators that we can bring,” Nergiz said. 

The executive added that Al-Futtaim Group has been exploring opportunities in Saudi Arabia’s passenger car market, having already been in the Kingdom for more than 15 years with construction equipment and commercial vehicles. 

“We have our retail business here and we have our other investment, but for the passenger cars, which is the flagship of the Al-Futtaim Group, BYD was a fantastic opportunity to enter the market,” he said. 

He pointed out that Saudi Arabia and the UAE account for nearly 80 percent of the Gulf Cooperation Council automotive market, and establishing a strong presence in these countries allows them to dominate the regional opportunity. 

Highlighting Saudi Arabia’s ambitious Vision 2030 targets — such as converting 30 percent of Riyadh’s vehicles to electric by 2030 — Nergiz expressed confidence in the region’s commitment to an electric future. 

On the topic of charging infrastructure, he explained that customers’ top barriers to adopting EV technology are price and access to charging. For this, their strategy involves partnerships with local companies.

“There are already a lot of private companies or government-sponsored companies that have put huge investments, and they are committed, up to 2030, to build this infrastructure. So, I think the partnership is the best for the consumer because these companies, ready to build the infrastructure, need the utilization, and they need more electric vehicles on the road,” he said.

The company signed its first memorandum of understanding with Turning Point, a charging company, during the EV Auto Show 2024 held in Riyadh, and is on the verge of inking another with one of the country’s largest charging companies.

“We do not look at charging as a separate competition, because if everybody comes ... and they try to get their limited pie of the market, the market will never grow. Partnership is the right approach in the Kingdom,” he said. 

Nergiz added that they are confident this approach will benefit the local economy. He stressed that charging points should be widely available, with options for home, destination, and the office, as well as along highways and key locations between major cities.

Commenting on the competitive landscape, Nergiz highlighted a two-fold view that balances future potential with present realities. 

He emphasized that the long-term outlook for EVs is promising, largely due to the Saudi government’s Vision 2030, but acknowledged that technology is still relatively new in the market.

Additionally, the infrastructure to support it — particularly the charging network — is in its early stages. 

He added that only a few companies, including some legacy automakers, have launched EVs in the market, making it somewhat nascent. 

Nergiz highlighted BYD’s advantage in offering both fully electric vehicles and plug-in hybrids. 

“One of the good things about BYD is that we have two technologies: electric vehicles and plug-in hybrids, and if you look at the hybrid market, which is growing massively because the big market players have their hybrid models, and the customers appreciate the benefits of the fuel-saving or total cost of ownership, it’s already accepted technology,” he said. 

The managing director explained the brands were launched in March 2024 with pop-up showrooms in five Cenomi malls. They currently have two in Riyadh, one in Jeddah, and two in Dammam. He stressed the importance of being present in these major cities from day one.

“In June, we opened our first discovery centers in Riyadh. Last month, we opened our first showroom in Jeddah, and, in a few months, we will also open our first showroom in Dammam,” he said. 

He mentioned that the pop-up strategy, aimed at introducing the brand in high-footfall shopping malls, is transitioning to permanent locations in three cities, and they are also considering building more.

Nergiz stated that they will open their first body-and-paint facility in Riyadh next month, which will also serve as a training center for technicians. In a few months, he added, they will launch a similar workshop and training center in Jeddah while working on initiatives in Dammam, emphasizing their focus on selling technology rather than cars.

Additionally, they are establishing spare-part distribution centers in Riyadh and other regions as part of their expansion strategy in the Saudi market.

On product offerings, Nergiz highlighted BYD’s dual technologies — electric and plug-in hybrids — as well as its competitive pricing and comprehensive features, which include enhanced safety and connectivity options typically seen in luxury segments. 

“BYD actually started as a battery company. They are the world’s best battery technology provider. In fact, they also sell the likes of Toyota and Tesla their batteries. So, they are dead good,” he concluded. 


ACWA Power inks $1.78bn agreements to boost renewable energy, R&D

ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
Updated 30 October 2024
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ACWA Power inks $1.78bn agreements to boost renewable energy, R&D

ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
  • First agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities
  • ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp.

RIYADH: Saudi utility giant ACWA Power signed four agreements valued at SR6.69 billion ($1.78 billion) on the first day of the eighth Future Investment Initiative in Riyadh. 

The deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa, highlighting the company’s expanding global reach. 

The first agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities, supporting ACWA Power’s project pipeline in Saudi Arabia, Kuwait, and other target markets. 

Additionally, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund two solar projects in Uzbekistan. 

“These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors,” said Marco Arcelli, CEO of ACWA Power. 

Uzbekistan has become a key market for ACWA Power, which has been active in the Central Asian nation’s renewable energy sector in recent years. 

Located in Samarkand, the Sazagan 1 and 2 projects each include 500 megawatts of solar photovoltaic and 334 MW of battery energy storage systems. ACWA Power noted that both projects are expected to commence commercial operations between the third quarter of 2025 and the fourth quarter of 2026. 

The company also signed a joint development agreement with Gotion Power Morocco, a battery solutions provider. Under this agreement, ACWA Power will develop a 500 MW wind power plant incorporating a 2,000 MWh battery energy storage system. 

The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, slated to start production in the first half of 2026. The initial investment for the project is $800 million. 

ACWA Power also signed a $54 million research and development agreement with China’s Lujiazui Administration Bureau to establish an R&D center in Shanghai. The center will focus on advancing technologies in solar, wind, energy storage, green hydrogen, and desalination. 

“Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future,” concluded Arcelli. 


Oil Updates – crude hovers at 1-month low with supply drivers back in focus

Oil Updates – crude hovers at 1-month low with supply drivers back in focus
Updated 30 October 2024
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Oil Updates – crude hovers at 1-month low with supply drivers back in focus

Oil Updates – crude hovers at 1-month low with supply drivers back in focus
  • Brent inches up 0.5 percent, WTI up 0.6 percent
  • Markets eye potential Israel-Hezbollah peace deal
  • US crude inventories unexpectedly fall — API

NEW YORK/SINGAPORE: Oil prices held at more than one-month lows, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in US fuel stocks.

Brent crude futures gained 38 cents, or 0.5 percent, to $71.50 a barrel by 7:51 a.m. Saudi time. US West Texas Intermediate crude futures rose 43 cents, or 0.6 percent, to $67.64 per barrel.

Prices fell for a second straight session on Tuesday when an Axios reporter said on X that Israeli Prime Minister Benjamin Netanyahu would hold an imminent meeting with several ministers, the heads of the military and intelligence community about talks on a diplomatic solution to the war in Lebanon.

A deal that would end the fighting between Israel and Hezbollah could be achieved within a few weeks, Israeli and US officials said, according to Axios.

“A hefty plunge in oil prices since the start of the week may call for an attempt to stabilize in today’s session, but overall gains remain limited, given the lack of bullish catalysts to drive a more sustained up-move,” said IG market strategist Yeap Jun Rong in an email.

“A ceasefire deal in the Middle East is on the table, which reduces the risks of a wider escalation impacting oil production, while we still have OPEC+ unwinding of production cuts on the horizon,” he added.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December. The group has cut output by a total of 5.86 million bpd, equivalent to about 5.7 percent of global oil demand.

Attention in oil markets was likely to shift back to OPEC, given the planned output raise from December, while weak demand in China would also be in focus, ANZ analysts said in a client note.

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

Crude stocks dipped by 573,000 barrels in the week ended Oct. 25, the sources said on condition of anonymity. Gasoline inventories lost 282,000 barrels, and distillate stocks fell by 1.46 million barrels, the sources said.

Nine analysts polled by Reuters had expected a 2.2 million-barrel rise in crude inventories.

Official US government data is scheduled to be released later on Wednesday.