Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

Yasir Al-Rumayyan, governor of the Public Investment Fund. (AFP)
Yasir Al-Rumayyan, governor of the Public Investment Fund. (AFP)
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Updated 03 March 2021

Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

DUBAI: Changes in Saudi Arabia in the past five years are just the “tip of the iceberg” of the transformation the Kingdom will experience under the Vision 2030 strategy and beyond, Yasir Al-Rumayyan, governor of the Public Investment Fund, said on Tuesday.
“The things we’d like to achieve in 2030 will be our optimal way of starting the next phase, which is what we will do until 2040, or after that to 2050,” Al-Rumayyan told a virtual session of CERAWeek — the “oil man’s Davos” — in Houston, Texas.
“Our society is changing, the people are becoming more receptive to new ideas on how companies should work and how society should function, and even the social contract is changing. If you add all of these together, you will have an idea of what Saudi Arabia, by embracing and implementing Vision 2030, will look like in nine years,” he said.
Al-Rumayyan, who is also chairman of Saudi Aramco, said plans remained in place to sell more shares in the world’s biggest oil company, after the biggest initial public offering (IPO) in history in 2019 when it sold less than 2 percent of its shares.
“From the very beginning we said we would be selling more of the shares owned by the government; once we see market conditions improving, and more appetite from different investment institutions and investors, we will definitely consider selling more shares,” he said.
He also underlined the Kingdom’s ambitions in renewable energy and hydrogen fuels. “Aramco is interested in renewables, believe it or not. It is the largest oil and gas company on the planet, but we are thinking of ourselves as an energy and petrochemical company.”
He told Daniel Yergin, the Pulitzer prize-winning oil historian, that PIF would invest $40 billion a year in Saudi Arabia to “stimulate the economy and
create jobs.”
 


Saudi Arabia to use 4IR to transform energy sector, fight climate change

Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
Updated 8 min 20 sec ago

Saudi Arabia to use 4IR to transform energy sector, fight climate change

Economy and Planning Minister Faisal Al-Ibrahim (L), Saudi Energy Minister Prince Abdul Aziz bin Salman (C) and Finance Minister Mohammed Al-Jadaan at the 4IR forum. (Screenshots)
  • Ministers laud the technology at forum for Fourth Industrial Revolution in Riyadh
  • 4IR is a way of describing the blurring of boundaries between the physical, digital, and biological worlds

DUBAI/RIYADH/JEDDAH: Saudi Arabia is aiming to use Fourth Industrial Revolution (4IR) technology to fundamentally transform the energy sector, enhance the security of its water and food resources, and fight climate change, senior ministers announced.

“Our vision is to transform the energy sector through the application of data and technology,” Saudi Energy Minister Prince Abdul Aziz bin Salman said during the 4IR forum in Riyadh on Thursday.

“Saudi Arabia has a rich resource of youthful innovators who can be entrusted with the task of seeing this transformation through to fulfillment. The synergy between youth and technological innovation will make Saudi Arabia a dynamo for the digital transformation of the energy sector.”

4IR is a fusion of advances in artificial intelligence, robotics, the Internet of Things (IoT), genetic engineering, quantum computing, and more. It is a way of describing the blurring of boundaries between the physical, digital, and biological worlds.

The application of 4IR technology in energy will enable the Kingdom to lead the way in the battle against climate change, the Saudi energy minister said. 

“Perhaps the most important area where technology and energy can combine to the benefit, not just of the Kingdom, but of all mankind, is in the search for cleaner energy,” Prince Abdul Aziz said. “Here, we can use the technology of the 4IR to accelerate the energy transition, and meet the goals for the reduction in greenhouse gas emissions.”

His view was echoed by Ahmed Al-Zahrani, assistant minister for energy, who highlighted the potential of 4IR technologies like IoT and Blockchain. 

“These will help our endeavors to improve efficiency and reduce emissions,” Al Zahrani said.

The Kingdom is known for its energy security as it has been endowed with huge energy resources, but when it comes to food and water security, the country is facing challenges. Adding 4IR applications can address these challenges, Saudi Minister of Environment, Water and Agriculture Abdul Rahman Al-Fadli told the conference. 

Al-Fadli also said 4IR applications such as the use of remote sensors, artificial intelligence, and robotics will help the farming sector in Saudi Arabia as the technologies will provide better data from the fields. He also mentioned that these applications will assist the Kingdom in its plan to plant billions of trees under its green initiative.

“The challenge we all face is to tackle the great issues of the world today, like post-pandemic economic recovery, energy reliability, and sustainability,” Prince Abdul Aziz said.

In other developments from the forum, Ahmed Al-Saadi, senior vice president for technical service at Saudi Aramco, said the oil company had developed its technology for many years, notably in monitoring conditions in oil reservoirs. He said Aramco had made great strides in technology and was among the “best in class” operators in the global energy peer group.

Mohammed Abunayyan, chairman of ACWA Power, the utility developer backed by Saudi Arabia’s Public Investment Fund, told the forum most of its operations were now digital and that essential maintenance was controlled and managed through digital functions.

Abunayyan also said the involvement of the private sector in the digitization of energy was crucial: “The private sector will always deliver better value than the public utility model.”

Jason Bordoff, Dean of the Columbia Climate School in New York, had a warning about the slow progress towards the Paris Agreement goal of reducing CO2 emissions.

“We are not on track to meet those goals,” he said. “We need emissions to decline faster.”

Melissa Lott, research director at Columbia’s energy policy center, said carbon capture, utilization, and storage — a big element in Saudi Arabia’s Circular Carbon Economy framework — was crucial to efforts in reducing emissions.


New center to lead Saudi role in ‘4th industrial revolution’, economic minister says

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says
Updated 29 July 2021

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says

New center to lead Saudi role in ‘4th industrial revolution’, economic minister says
  • The Saudi minister said the new center will contribute to global discussions on the use of 4IR technology, such as 5G and artificial intelligence

DUBAI: The Saudi Centre for the Fourth Industrial Revolution (4IR) will lead the Kingdom’s role in utilizing advanced technologies and their local and global implications, Minister of Economy and Planning Faisal bin Fadel Al-Ibrahim said.

The Saudi minister said the new center will contribute to global discussions on the use of 4IR technology, such as 5G and artificial intelligence, especially amid the COVID-19 pandemic that has introduced new challengers to countries.

“COVID-19 intensified the need for data and evidence-based iterative policymaking supported by technology-driven and innovation-based solutions,” he said at the first Saudi 4IR forum held in Riyadh.

The Kingdom has become a global role model in deploying digital technology at peak of the health crisis, Al-Ibrahim said, enumerating Saudi efforts to manage the pandemic.

Saudi Arabia ranks 4th in the world in 5G connectivity, he added, and a robust digital infrastructure helped the Kingdom overcome challenges in the education and finance sectors.

Over 850 thousand daily classes were executed for over 6 million students in 2020, and around 2.8 billion digital payment transactions were made.

“This demonstrates Saudi`s leadership in having the most modern digital platform and world class capabilities to design local and global solutions at the technological frontier,” the minister said.

A recent report by the United Nations Conference on Trade and Development said the technology market could reach the value of 3.2 trillion dollars in 2025, increasing by almost 10 times from 2018 figures.

Al-Ibrahim said the Saudi economy could benefit from this by capturing a slice of the industry over the next five years.

The Kingdom is already in a good position, he explained, saying it “has its work cut out for it to move up the Global Innovation Index rankings where we plan to be among the leading pack of our G20 peers.”

“We are passionate about the objectives and vision of the Center, and look forward to working closely with its team in bringing the public and private sectors as well as the science and technology community together,” he added.


Brent crude back above $75 on US inventory draw, positive Fed outlook

Brent crude back above $75 on US inventory draw, positive Fed outlook
Updated 29 July 2021

Brent crude back above $75 on US inventory draw, positive Fed outlook

Brent crude back above $75 on US inventory draw, positive Fed outlook
  • US report showing falling oil supplies boosts market
  • Oil majors Royal Dutch Shell, Repsol post higher profits on oil gain

LONDON: Oil gained for a second day on Thursday as traders remained buoyed by yesterday’s data showing a bigger-than-expected drop in US inventories, while the Federal Reserve painted an optimistic picture of the American economy.

Brent crude gained 0.7 percent to $75.23 a barrel at 2:44 p.m. in London, set to close above the $75 mark for the first time in two weeks. US Benchmark WTI also added 0.7 percent, to $72.87.

Brent, the global benchmark, passed $75 a barrel in June for the first time in more than two years but has fallen below $69 on July 17 on concerns over the spread of the Delta coronavirus variant and an OPEC+ deal to increase production over the coming months.

Crude in storage fell to the lowest since January 2020, while distillate supplies posted the biggest decline since April, the US Energy Information Agency said in its weekly report on Wednesday. Fuel inventories fell by more than 2 million barrels.

The US economy is continuing to recover even as COVID-19 infections increase, the Federal Reserve said on Wednesday, sparking speculation as to when it will begin to taper its bond purchase program.

In a separate report from the US Commerce Department today, the economy was shown to have grown at a 6.5 percent annual pace in the second quarter, below the 8.5 percent predicted in a Reuters poll of economists, but still enough to bring the economy back to its pre-pandemic size.

“The (oil inventory) falls suggest the rise in cases of COVID-19’s Delta variant is having little impact on mobility,” ANZ analysts said in a note on Thursday.

Oil prices also benefited from a statement from Iran blaming the US for stalled progress in talks over its nuclear ambitions, potentially delaying the return of Persian crude to world markets.

Global oil companies, including Royal Dutch Shell and Spain’s Repsol reported blockbuster earnings today as higher oil prices boosted returns.

Shell boosted its dividend and launched a $2 billion share buyback program on Thursday as it reported the highest second quarter profits in more than two years.

Shell Chief Financial Officer Jessica Uhl said that global fuel demand was at 90 percent to 100 percent of its pre-pandemic levels, but consumption of aviation fuel remained weak.


Spanish energy giant Repsol booked a net profit of 587 million euros ($700 million) foer the second quarter, compared to a loss of 1.9 billion euros in the same period last year.

“Demand has also increased, thanks in large part to vaccination rollout,” it said.

Repsol said revenues at its petrol stations in Spain jumped by 63 percent in the second quarter when compared to the same period last year as travel picked up following the easing of lockdowns.


Cruise Saudi, MSC Group sign new five-year agreement at Jeddah port

Cruise Saudi, MSC Group sign new five-year agreement at Jeddah port
Updated 29 July 2021

Cruise Saudi, MSC Group sign new five-year agreement at Jeddah port

Cruise Saudi, MSC Group sign new five-year agreement at Jeddah port
  • MSC Bellissima will offer cruises to Safaga for Luxor, Egypt and Aqaba for Petra, Jordan

JEDDAH: Geneva-headquartered MSC Cruises announced on Thursday it had signed a five-year agreement with Cruise Saudi for preferential berthing rights at the port of Jeddah.

The announcement was made aboard the company’s liner MSC Bellissima at a celebration to mark the opening of Jeddah’s new passenger terminal. The ship will sail 21 voyages around the Red Sea starting from July until late October.

Pierfrancesco Vago, executive chairman of MSC Cruises, said in a press statement: “This is a very special, historic day for all of us. The largest and most modern ship to operate in the Red Sea has set sail from Jeddah’s new terminal to mark a new beginning for cruising in Saudi Arabia and, more broadly, for its growing tourism industry.”

The MSC Bellissima, which came into service in 2019, will offer three-to-four-night cruises to Safaga for Luxor, Egypt and Aqaba for Petra, Jordan, before returning to the Saudi homeport in Jeddah.

The ship is equipped with a 975-seat main theater, an aquapark, a bowling alley, an F1 simulator, a kids club, a cinema and a shopping gallery with more than 200 brands.

The Public Investment Fund launched Cruise Saudi in January of this year to develop a cruise industry in the Kingdom. Mark Robinson, chief operations and commercial officer, Cruise Saudi, said in a statement on Thursday: “The creation of Cruise Saudi, tasked with launching the cruise industry in Saudi Arabia, happened just six months ago at [the Future Investment Initiative] in Riyadh."

"The remit of Cruise Saudi — to create 50,000 jobs by 2025, to facilitate the building of an additional five ports, with Jeddah as a homeport, and to welcome 1.5 million annual passenger visits by 2028 — is an ambitious one, which will play a major part in strengthening the tourism industry in Saudi Arabia,” said Robinson.


Mubadala invests $250m in US biosimulation company

Mubadala invests $250m in US biosimulation company
Updated 29 July 2021

Mubadala invests $250m in US biosimulation company

Mubadala invests $250m in US biosimulation company
  • Transaction to close on August 2
  • Mubadala is building a growing life sciences portfolio

RIYADH: Abu Dhabi sovereign investment fund Mubadala has made a $250 million investment in US biosimulation company Certara, WAM reported.

Certara uses biosimulation to and technology-enabled services to accelerate drug discovery and development. The investment aligns with Mubadala’s strategy of enabling innovation to address unmet clinical needs and drive cost efficiencies.

Mubadala and existing institutional shareholders of Certara, including a stakeholder affiliated with alternative investment company EQT, have signed an agreement through which a Mubadala affiliate will buy more than 9.61 million shares in Certara at $26 per share from the shareholders in a private transaction scheduled to close on August 2.

“We are pleased to welcome a significant new investment from Mubadala, a sovereign investor with deep expertise in life sciences that is focused on creating lasting value,” said William F. Feehery, CEO of Certara.

EQT will remain a significant shareholder in the company after the transaction.

Mubadala invested almost $500 million in European veterinary giant IVC Evidensia in nearly in May. It has an asset base of 894 billion Emirati dirhams ($243.4 billion).