Global wind capacity to rise by more than half in next five years

Global wind capacity to rise by more than half in next five years
Above, the Dan Tysk wind park of Swedish energy company Vattenfall and Stadtwerke Munich located west of the German island of Sylt in the North Sea. (Reuters)
Updated 25 April 2018

Global wind capacity to rise by more than half in next five years

Global wind capacity to rise by more than half in next five years
  • Around 52.5 gigawatts of new wind power capacity was added worldwide last year, down slightly from 54.6 GW in 2016
  • China continues to be the biggest wind market in the world, adding nearly 19.7 GW of new capacity in 2017

LONDON: Global wind energy capacity could increase by more than half over the next five years, as costs continue to fall and the market returns to growth at the end of this decade, a report by the Global Wind Energy Council shows.
In its annual report on the status of the global wind industry, the GWEC said cumulative wind energy capacity stood at 539 gigawatts (GW) at the end of last year, 11 percent higher than the previous year.
That should increase by 56 percent to 840 GW by the end of 2022 as countries develop more renewable energy to meet emissions cut targets and prices continue to fall, the wind industry association said.
Around 52.5 gigawatts (GW) of new wind power capacity was added worldwide last year, down slightly from 54.6 GW in 2016. The GWEC expects the market to be flat this year but start growing again from 2019.
“The annual market will return to growth in 2019 and 2020, breaching the 60 GW barrier once again and continue to grow, albeit at a slower pace, in the beginning of the new decade,” the GWEC said in its report.
“We expect to see total cumulative installations reach 840 GW by the end of 2022,” it added.
Wind power has become more competitive over the past few years, with a move from government subsidies to auctions which has brought costs down further.
“Overall, offshore prices for projects to be completed in the next five years or so are half of what they were for the last five years and this trend is likely to continue,” the report said.
China continues to be the biggest wind market in the world, adding nearly 19.7 GW of new capacity in 2017, though this was 15.9 percent lower than the previous year.
The pace of China’s wind development is gradually slowing down and growth is expected to be flat to 2020.
India experienced record wind installations last year, adding over 4 GW, but GWEC expects this to slow this year due to a transition period between old market incentives and moving toward an auction-based system, the GWEC said.
The EU also had a record year in 2017 with 15.6 GW added. The bloc is expected to install around 76 GW of new wind power by the end of 2022, reaching a cumulative total of 254 GW.
The US added 7 GW of new wind capacity last year. Despite attempts to change the structure of tax credits last year, the provisions remained intact and continue to support the industry.


Noon aims to attract more Saudi shoppers with rewards program

Noon aims to attract more Saudi shoppers with rewards program
Updated 2 min 11 sec ago

Noon aims to attract more Saudi shoppers with rewards program

Noon aims to attract more Saudi shoppers with rewards program
  • Its “noon VIP’ package aims to attract more customers through cash back discounts, speedier deliveries and prioritized customer service

DUBAI: Online shopping platform noon.com has launched a new rewards program in Saudi Arabia as it seeks to grow its market share in the Kingdom.
Its “noon VIP’ package aims to attract more customers through cash back discounts, speedier deliveries and prioritized customer service.
The pandemic has created a boom in online shopping across the region as the closure of malls has forced the public to make more purchases online. Now online retails giants from noon to Amazon are competing for regional market share.
The loyalty scheme has also been rolled out to the UAE and Egypt.
Any customer who has made six or more purchases on the platform over the last 12 months will be automatically enrolled in the loyalty scheme, noon said in a statement.
It costs SR33 for three months or SR120 for one full year’s membership.

 


Saudis dominate Forbes Middle East’s 2021 list of top CEOs

Saudis dominate Forbes Middle East’s 2021 list of top CEOs
Updated 18 min 6 sec ago

Saudis dominate Forbes Middle East’s 2021 list of top CEOs

Saudis dominate Forbes Middle East’s 2021 list of top CEOs
  • Aramco chief Amin Nasser emerged as this year’s number one
  • Saudi Arabia had the most entries at 18, followed by the UAE and Egypt with 16 entries each

DUBAI: Saudi executives dominated Forbes Middle East’s ranking of the best corporate leaders in the region, with Aramco chief Amin Nasser emerging as this year’s number one.

The Middle East counterpart of American business magazine Forbes recognized business icons “making significant contributions to the region’s economies.”

Some 100 CEOs from around the region were featured, and 24 nationalities were represented. Saudi Arabia had the most entries at 18, followed by the UAE and Egypt with 16 entries each.

Four out of the top five chief executives were from the oil and gas industry.

Aramco’s Nasser, who was ranked first, was followed by Sultan Ahmed Al-Jaber of the Abu Dhabi National Oil Company.

SABIC’s Yousef Abdullah Al-Benyan, Kuwait Petroleum Corporation’s Hashem Hashem and Sonatrach’s Toufik Hakkar were also in the top 10.

Executives from the banking and financial services sector accounted for almost a third of the names, with Abdulla Mubarak Al-Khalifa of Qatar National Bank emerging as the leader in the field.

The magazine used various measures to come up with the list, including company size, individual accomplishments, as well as the executives’ impact on the wider industry.


Restructuring: How can Saudi companies progress from COVID survival mode?

Restructuring: How can Saudi companies progress from COVID survival mode?
Updated 20 min 6 sec ago

Restructuring: How can Saudi companies progress from COVID survival mode?

Restructuring: How can Saudi companies progress from COVID survival mode?
  • Alvarez and Marsal has been advising companies in the Kingdom on how best to pivot out of the tough times

Alvarez and Marsal (A&M) is a New York-headquartered global professional services firm known in the industry as “the turnaround guys.” Legend has it that co-founder Bryan Marsal was one of the first people called when Lehman Brothers looked set to become be the first major casualty of the global financial crisis in 2008.

A&M was founded in 1983 and now has representatives in 25 countries, including Dubai, from where it is now attempting to help Middle Eastern clients restructure their businesses after the challenges of 2020. As demand for its services grows, the company is aiming to increase its staff in the Middle East to 150 over the next five years, from ten in 2015.

According to Paul Gilbert, head of A&M’s Turnaround and Restructuring practice in the Middle East, two of the most important steps management can take to overcome crises are to take total control over cash flow and to put in place a 12-month contingency plan to help the business stay afloat. Gilbert is currently working on the restructuring of Abu Dhabi’s NMC Health and has previously advised on rescue proceedings for South African Airways.

“Continue with cash preservation and cost control. Talk to your suppliers and landlords — those guys are suffering too, but they still want your business to come out of the other end,” Gilbert told Arab News. “These guys want to talk to you because they want to know that you’re going to be around at the end of it to help them rebuild their own businesses.”

According to Dr. Saeeda Jaffar, managing director and head of the Middle East at A&M, the pandemic has impacted companies in three major ways. There were companies that understood what was going on immediately and took “advantage of discontinuity” to find ways to succeed. Those companies already had a digital business model that supported their shift to digital, or had reacted nimbly to acquire a digital solution, so the transition was not as drastic as it has been for others.

The second group went into what Jaffar calls “hibernation mode,” by opting to minimize losses by decreasing costs, conserving cash, restricting loans and balances and generally steering away from bold decisions until the uncertainty passes.

The companies in the third group, Jaffar said, had weak business models and were unattractive to investors, so were bound to face difficulties.

One of the sectors that has suffered most has been retailers, according to Gilbert. “We’ve helped them across Europe with negotiations with landlords, with other creditors and helped them pivot from bricks-and-mortar stores to digital, and concentrated on helping them retain their customer base for when they come out,” he said. “Many of them are coming out of that period with a balance sheet that is either extremely stretched or has been restructured in a way that a number of lenders have now had to take equity back.”

Other sectors, including travel, tourism, aviation and real estate, have suffered tremendous losses during the pandemic as well.

In the Kingdom, Jaffar said that domestic tourism numbers exceeded expectations at the end of 2020. “I think that’s a trend that will continue. That’s very much in line with the Vision 2030. We continuously see that there is a lot of development happening in the Kingdom, new resorts, new places, new developments that help continue to grow the tourism sector,” she said.

Jaffar believes it will take longer for aviation to recover than many industries, perhaps three to four years, she said.

On the other hand, technology — which Jaffar said has been the “backbone” for many other sectors — and health care — which has witnessed considerable investment in pharma consumables — have both prospered during the pandemic. A trend that Jaffar expects to continue in the near future.

Both A&M consultants suggest that as companies emerge from the pandemic, many will be looking at potential consolidation. Therefore, they said, mergers and acquisition activity will see a spike in 2021.

“There are a lot of strategic investors from the region that have learned over the last few cycles that investing now, when the valuations are more affordable, is probably a good time in terms of financial attractiveness,” said Jaffar.


Weekly energy recap: March 5, 2021

Weekly energy recap: March 5, 2021
Updated 45 min 38 sec ago

Weekly energy recap: March 5, 2021

Weekly energy recap: March 5, 2021
  • Many market participants were expecting that OPEC+ would restore as much as 1.5 million barrels a day of output in April
  • Many analysts had not taken into account the fact that global oil inventories remain well above the five-year average

Oil prices have escalated to the highest levels since October 2018. The Brent crude price is shyly approaching the vital $70 per barrel mark and closed the week at $69.36 per barrel. WTI closed the week at $66.09 per barrel.

Though global oil markets had anticipated an output increase from OPEC+, claiming the market can absorb one to two million additional barrels per day (bpd), OPEC+ took the market by surprise when it decided to roll over its quota, given the still-fragile global oil demand recovery.

The move is not about OPEC+ protecting the current price levels that have exceeded the pre-pandemic levels, it is not about refusing to bring more oil production online, it is not about dismissing any concerns about inflation and market overheating. The current oil price levels are not at astronomical high levels to add inflationary pressure to the global economy as it emerges from the pandemic.

Many market participants were expecting that OPEC+ would restore as much as 1.5 million barrels a day of output in April. However, they were only looking at the tip of the iceberg, focusing on high fuel demand in India, depleting global inventories, the rollout of vaccine programs and the financial stimulus packages that helped to improve market sentiment.

Many analysts had not taken into account the fact that global oil inventories remain well above the five-year average. Or, most importantly, the upcoming spring refineries maintenance season in Asia during the second quarter will further dampen crude oil supply.

On top of that, there has been a massive drop in the US refinery utilization rate, which has seen oil inventories jump by 21.6 million barrels, the biggest weekly rise since records began in 1982.

All these bearish developments make oil demand recovery uncertain in the short-term. Despite the fact that oil prices have rallied by about 30 percent since the start of 2021, OPEC+ producers are working tirelessly to drain the glut that built up during the pandemic last year, one of the worst periods in the history of the industry.


Saudi entertainment shares jump on easing of restrictions

Saudi entertainment shares jump on easing of restrictions
Updated 07 March 2021

Saudi entertainment shares jump on easing of restrictions

Saudi entertainment shares jump on easing of restrictions
  • The stock gained 5 percent in early trade

DUBAI: Saudi entertainment and retail shares gained on Sunday after the government said it would end most coronavirus-related restrictions, including resuming indoor dining and reopening cinemas, entertainment activities and events.

The sector has been one of the worst affected by a year of restrictions which has forced restaurants, cinemas and other venues to close their doors.
Entertainment giant Abdul Mohsen Al Hokair Group for Tourism and Development said all of its entertainment venues and cinema joint ventures would re-open on Sunday.
However, it said that the suspension of party and meeting halls as well as some other hotel facilities would continue until notified otherwise by the government.
The stock gained 5 percent in early trade.
Saudis will also be allowed to exercise in gyms following the relaxation of restrictions. Leejam Sports Company said it would re-open all of its facilities from Sunday.
Its stock rose 3.5 percent.