UAE may become first major oil exporter to target net zero by 2050

UAE may become first major oil exporter to target net zero by 2050
The UAE currently plans to generate only half of its power from renewables and nuclear by 2050. (Shutterstock)
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Updated 25 June 2021

UAE may become first major oil exporter to target net zero by 2050

UAE may become first major oil exporter to target net zero by 2050
  • UAE can hit target while continuing to sell oil and gas
  • UAE may announce plan before Glasgow climate summit

ABU DHABI: The UAE is considering a 2050 target to align with a global push to keep temperatures from rising more than 1.5 degrees Celsius from pre-industrial levels, Bloomberg reported citing people familiar with the matter.

If the discussions succeed, the UAE could become the first among OPEC countries to technically reach net zero while continuing with plans to invest billions in oil extraction.

This move would please Western countries pushing for stronger climate commitments but won’t require it to sell less oil.

The net-zero charge is being led by Sultan Ahmed Al Jaber, the UAE’s special envoy for climate change and its minister of industry and advanced technology.

We are “certainly working on a whole-of-government approach to see at what point it would be feasible to achieve net zero,” Hana AlHashimi, who heads Al Jaber’s office, said on a call hosted by the US-UAE Business Council on Wednesday, according to Bloomberg. “I’d encourage you to stay tuned,” she said.

The country aims to make an announcement before the UN climate summit in Glasgow in November, the people said, asking not to be identified for the privacy of the ongoing talks.

Emissions from burning fossil fuels after they’re shipped abroad aren’t included in such country-level targets. The fossil fuels remain UAE’s biggest source of revenue, contributing about 30 percent to GDP. Still, the nation has taken steps to bolster its green credentials.

Only half of all power capacity is set to be emission free by 2050, consisting of renewables and nuclear, according to the UAE’s long-term energy plan. The country plans to meet the rest of its energy needs with gas and coal.

Climate Action Tracker, a nonprofit that analyzes climate goals, rates the UAE’s policies “highly insufficient.”

The UAE is now bidding to host the UN’s global climate talks in 2023. It’s up against South Korea, which has already set a net-zero by 2050 goal.

The UAE has been a target of US lobbying for stronger green commitments. It’s among the few countries to host special climate envoy John Kerry twice since he took office earlier this year, Bloomberg said.

Kerry expressed optimism that Saudi Arabia will agree to a net-zero emissions target of around 2050 after visiting the nation on his most recent trip to the region.


Saudi Arabia’s point-of-sale transactions increase by 1.2% in October 

Saudi Arabia’s point-of-sale transactions increase by 1.2% in October 
Updated 14 sec ago

Saudi Arabia’s point-of-sale transactions increase by 1.2% in October 

Saudi Arabia’s point-of-sale transactions increase by 1.2% in October 

RIYADH: The value of point-of-sale transactions in Saudi Arabia reached SR40.5 billion ($10.8 billion) in October, up by 1.2 percent compared to the previous month, the Saudi Central Bank reported.

Some of the sectors that helped drive the increase were restaurants and cafes, hotels, food and beverages, clothing and footwear. 

For example, sales in restaurants and cafes reached their highest level since at least January 2016.

The number of transactions rose markedly to over 495 million in October from the previous month’s 469 million transactions.

Some of the point-of-sale transactions could be conducted using mobile phones and cards, otherwise referred to as near-field communication technology.

The number of mobile phone transactions continued its expansionary trend, recording a monthly increase of 1.9 percent to hit 179 million transactions in October. Meanwhile, the number of transactions using cards was up by 8 percent to stand at 293 million transactions.

The value of transactions using mobile phones witnessed a 2.5 percent drop to SR11.5 billion in October while those performed using cards recorded an increase of 3.2 percent with the value reaching SR25.7 billion.


Saudi Tadawul Group sets IPO offer price at SR105 per share

Saudi Tadawul Group sets IPO offer price at SR105 per share
Updated 47 min 30 sec ago

Saudi Tadawul Group sets IPO offer price at SR105 per share

Saudi Tadawul Group sets IPO offer price at SR105 per share

RIYADH: Saudi Tadawul Group Holding Co. on Sunday set the final offer price for its initial public offering at the top of the range i.e. SR105 per share. 

The market capitalization of the exchange stands at SR 12.6 billion as on the listing date, a statement issued by Tadawul said. 

The IPO order book was 121 times oversubscribed with the book-building process generating an order book of SR458 billion. 

The individual investor subscription period is scheduled to commence on Nov. 30 and ends on Dec. 2. 


Jordan’s draft 2022 budget forecasts $15 billion in state spending

Jordan’s draft 2022 budget forecasts $15 billion in state spending
Updated 28 November 2021

Jordan’s draft 2022 budget forecasts $15 billion in state spending

Jordan’s draft 2022 budget forecasts $15 billion in state spending
  • The government foresaw total revenues next year at 8.9 billion dinars, with 848 million in foreign grants
  • It has raised capital spending to 1.5 billion dinars, a 43 percent rise from the previous year

AMMAN: Jordan’s Finance Minister Mohamad Al-Ississ said on Sunday that the draft 2022 budget forecasts 10.6 billion dinars ($15 billion) in state expenditure and paves the way for a rebound in growth to 2.7 percent after the impact of the coronavirus pandemic.
Al-Ississ told a media briefing that Jordan had also last week successfully concluded the third review of a four-year program of International Monetary Fund (IMF) backed reforms to help it restore fiscal prudence for a sustained recovery.
Al-Ississ said that the government had increased its local revenues last year without raising taxes through a rare campaign to combat tax evasion and by a major restructuring of the tax and customs administration that ended exemptions.
It foresaw total revenues next year at 8.9 billion dinars, with 848 million in foreign grants.
Jordan’s economy was particularly hard hit last year by the shutdowns aimed at containing the virus, with unemployment at a record 24 percent amid the worst contraction in decades.
Inflation was, however, expected to rise to 2.5 percent next year from a projected 1.6 percent this year, Al-Ississ said.
Most state expenditure goes on salaries and pensions in a country which has among the highest government spending relative to the size of its $45 billion economy.
The government has raised capital spending to 1.5 billion dinars, a 43 percent rise from the previous year to help spur growth and improve infrastructure to help attract more investment, the finance minister said
Jordan’s commitment to IMF reforms and investor confidence in the country’s improved outlook helped it to maintain stable sovereign ratings at a time when other emerging markets were being downgraded, Al-Ississ said.
Al-Ississ said debt servicing on 29.4 billion dinars of public debt would drop next year with a push to expand preferential loans and grants away from more expensive commercial lending.


Saudi Arabia registers the new Bahri-owned oil tanker Rayah

Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
Updated 28 November 2021

Saudi Arabia registers the new Bahri-owned oil tanker Rayah

Saudi Public Transport Authority raises the Kingdom’s flag on the new Rayah marine tanker in Dammam in the Eastern Province. (SPA)
  • The Rayah raises the total number of oil tankers owned by Bahri to 57
  • The tanker is made by Hyundai with a tonnage of 110,706 metric tons

RIYADH: Saudi Arabia’s transport authority raised the Kingdom’s flag on a new marine tanker in Dammam in the Eastern Province.
The Rayah tanker, which has been registered under the Saudi flag, is one of the national carriers owned and operated by Bahri, the Saudi National Shipping Company.
It raises the total number of national ships carrying the Saudi flag to 408 ships to date, with a tonnage exceeding 100 tons, increasing the carrying capacity of the Saudi merchant marine fleet.
The Kingdom’s fleet is experiencing rapid growth, and the addition of the new tanker is an important step in supporting business growth through developing marine capabilities and expanding shipping lanes in energy supplies to global markets.

The Rayah, made by Hyundai with a tonnage of 110,706 metric tons, raises the total number of oil tankers owned by Bahri to 57, and was registered by the regulatory and legislative authority for the Kingdom’s maritime transport sector.
Saudi Arabia’s marine fleet was ranked first regionally and 21st globally in terms of tonnage, according to the annual report of the UN Conference on Trade and Development last year.
“The Public Transport Authority will continue its endeavors and exert more efforts to enhance the logistics sector and national transport, especially maritime, and contribute to consolidating the Kingdom’s leading position on the map of shipping and global marine supply chains,” the body said in a statement.


OPEC+ delays technical meetings to review market conditions

OPEC+ delays technical meetings to review market conditions
Updated 28 November 2021

OPEC+ delays technical meetings to review market conditions

OPEC+ delays technical meetings to review market conditions

RIYADH: The Organization of the Petroleum Exporting Countries and its allies, a grouping known as OPEC+, is moving two technical meetings to later this week after oil’s rout last Friday, Bloomberg reported on Sunday.

The move seeks to allow its committees more time to evaluate the impact of a new strain of the coronavirus.

A joint technical committee meeting will now be held on Wednesday, instead of the planned date Monday, according to delegates from some member countries. 

The joint ministerial monitoring committee, which comprises representatives of the broader group, will meet on Thursday instead of on Tuesday.

The OPEC and broader OPEC+ meetings will go ahead as planned on Wednesday and Thursday with ministers set to decide on whether to go ahead with planned output increases.

The delay will allow time for the group to analyze the market after a more than 10 percent drop in prices on Friday after the emergence of new coronavirus variant spooked traders. 

OPEC will also weigh the potential impact of a planned release of strategic petroleum reserves by the US and other oil consuming nations.