Saudi startup joins in national efforts promote green building

Saudi startup joins in national efforts promote green building
Saudis are increasingly becoming aware of using sustainable solutions to conserve energy and preserve the environment in line with the government’s efforts. (GettyImages)
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Updated 25 October 2021

Saudi startup joins in national efforts promote green building

Saudi startup joins in national efforts promote green building
  • Large number of people in the Kingdom are moving toward sustainable solutions

LONDON: As global leaders converge at the Middle East Green Initiative Summit on Oct. 25, the focus will be on new ideas and proposals to replace the wasteful and polluting ways in favor of environmentally-friendly methods. 

Meanwhile, there are set to be profound changes at the grass-roots level, in terms of sustainable living environments. A number of “green” startups have emerged in the Kingdom in recent years, offering products and services that aim to reduce carbon emissions while improving the quality of life for ordinary citizens.

One such company is Riyadh-based EIA Energy. Founded in 2020 with support from Monsha’at, the General Authority for Small and Medium Enterprises, EIA Energy is a 12-employee firm with a turnover of SR1.2 million and projected growth up to SR7.5 million by Q4 2022.

“EIA Energy was founded as an energy services company (ESCO) and has developed into a provider of end-to-end energy management services and solutions to reduce energy consumption and increase energy efficiency in client facilities,” CEO Abdullah Al-Othman told Arab News. 

As a certified ESCO, EIA Energy provides three kinds of service: First, energy consulting and energy monitoring in order to reduce costs; second is the obtaining of “green certification” for facility owners and managers; and third is guidance regarding green building techniques in terms of architecture, efficient water use, landscaping and eco-friendly transport solutions. 

EIA Energy describes its energy efficiency strategy as the “SMARRT Approach” – an acronym for Surveying, Monitoring, Analyzing, Reducing, Reviewing and Targeting.  

There will be a growing demand for this kind of consultancy in Saudi Arabia as builders and developers conform to new green regulations while satisfying the demand of modern families for a healthier and better way of life. 

“This is a good time for ESCOs right now,” says Al-Othman, “because we’re catching the beginning of the whole transformation that’s taking place, the cultural shift. There are a lot of government initiatives – Vision 2030, SGI, Green Riyadh — which stimulate the entire market and create a lot of opportunities.”

In the 1960s and 70s Riyadh and other cities in the Kingdom became the so-called “supergrids” of intersecting highways, filled in with buildings and concrete surfacing with only a small allowance for green spaces. Concrete absorbs and radiates heat in the summer months, while preventing ground absorption of rainwater during the winter — causing severe and sometimes fatal flooding. 

“We say no to concrete,” says EIA Energy GM Hamza Khan. “We prefer gravel because there has to be porous ground that allows rainwater to go back into the earth and replenish the groundwater sources.”

Builders, developers and facility operators have no choice but to move from words to action. “We are getting a lot of inquiries from apartment and compound owners, supermarkets, retail outlets and restaurants,” says Khan. “They all want to reduce their costs and their emissions – to offer something more sustainable and to stand apart from the competition.” 

Much of EIA Energy’s efforts are dedicated to enabling LEED (Leadership in Energy and Environmental Design) Certification from the US Green Building Council. This certification promotes a higher quality of life for building occupants in terms of energy and water efficiency and improvement of the living environment. It follows the principle of the triple bottom line of the 3Ps: People, planet and profit. This certification can be applied to any built-up area: residential facilities, office buildings, educational institutions and hospitals.

EIA Energy relies on hardware and software supplied by its UK partner Best Energy. “But it is clear that the technologies we bring to Saudi Arabia should be manufactured or at least assembled here,” says Al-Othman. “And that would solve a major issue that we are facing now with the destruction of the global supply chain due to COVID-19 and other factors.” The company also has ambitions to develop its own proprietary solutions as it grows and expands. 

“Saudi Arabia is going green and is moving towards energy efficiency and reducing its carbon emissions,” says Al-Othman. “Green tech startups and ESCOs have a major part in this. We are benefiting from new government initiatives, and we just want to keep improving and introducing more services — in line with Vision 2030, which says that SMEs should play a key role in the future Saudi economy.”


SISCO’s subsidiary LogiPoint acquires Elite Group

SISCO’s subsidiary LogiPoint acquires Elite Group
sisco.com
Updated 12 sec ago

SISCO’s subsidiary LogiPoint acquires Elite Group

SISCO’s subsidiary LogiPoint acquires Elite Group
  • The transaction is to be funded through bank financing and direct cash investment

Saudi Trade and Export Development Co. (LogiPoint) has acquired Elite Group through Green Dome Investments LLC, according to a bourse filing by its parent Saudi Industrial Services Co. 

The transaction was concluded on Nov. 25, with LogiPoint’s investment in Green Dome valued at SR58 million ($15 million).

SISCO expects the impact of the transaction to be shown in the consolidated financial statements of the fourth quarter of 2021, through LogiPoint.

The transaction is to be funded through bank financing and direct cash investment. 

Elite Group is an integrated land freight and courier solutions provider in the region. 


Bahrain outlook improves on fiscal reforms, S&P says

Bahrain outlook improves on fiscal reforms, S&P says
Image: Shutterstock
Updated 39 min 17 sec ago

Bahrain outlook improves on fiscal reforms, S&P says

Bahrain outlook improves on fiscal reforms, S&P says
  • The agency said it expects the government to benefit from additional financial support from its Gulf neighbours

S&P Global Ratings has revised Bahrain's outlook to 'stable' from 'negative' on the back of new fiscal reforms aimed at improving non-oil revenues and cutting state spending, the ratings agency said in a statement.

Rated below investment grade, Bahrain was bailed out to avoid a credit crunch in 2018 with a $10 billion package from wealthy neighbours, Saudi Arabia, Kuwait and the United Arab Emirates.


That money was linked to a set of fiscal reforms, but after the coronavirus crisis strained its finances, Bahrain in September postponed plans to balance its budget by two years and announced plans to increase a value-added tax.


"The Bahraini government recently announced additional fiscal reforms to strengthen non-oil revenue and rationalize expenditure. These measures, along with the more supportive oil price environment, should improve the sovereign's fiscal position", S&P said in a statement this weekend.


The agency said it expects the government to benefit from additional financial support from its Gulf neighbors, if needed.


Bahrain will double value-added tax to 10 percent next year, a move which S&P estimated could contribute receipts of about 3 percent of gross domestic product in the next few years, up from about 1.7 percent this year.


The Gulf state is also planning to rationalize operational government expenditure and social subsidies in 2023 and 2024, a move which shifts the focus of its reforms more on the spending side than on raising non-oil revenues.


"We believe there is higher implementation risk in expenditure rationalization as the delicate political and social environment on the island, which has constrained the government's efforts, persists", S&P said.


Bahrain has in the past backtracked on some reforms as its Sunni Muslim rulers feared that austerity moves would bolster the majority Shi’ite-led opposition and stir more of the unrest that rattled the country since the 2011 Arab Spring uprisings.


How Omicron is affecting Middle East markets

How Omicron is affecting Middle East markets
Image: Shutterstock
Updated 53 min 16 sec ago

How Omicron is affecting Middle East markets

How Omicron is affecting Middle East markets
  • Oil prices stumbled in their biggest decline since April 2020

DUBAI: The new COVID-19 variant, Omicron, has prompted global economic concerns, as fears of its spread begin to affect stock markets and oil prices. 

Saudi Arabia’s main market, the Tadawul All Share Index, opened 5.3 percent lower on Sunday, trading near 10,700 points. 

The Dubai Financial Market was down 8.49 percent.

Oil prices stumbled in their biggest decline since April 2020, with Brent prices dropping 11.55 percent to $72.72 per barrel when markets closed on Friday, while WTI slid 13.06 percent down to $68.15 per barrel.

The variant was first discovered in South Africa and had also since been detected in Belgium, Botswana, Israel, the UK, Australia and Hong Kong.

Within the Middle East Israel is the only country to have reported a case of the new variant so far, but some governments in the region have issued travel curbs to prevent the virus from spreading. 

On Sunday, Saudi Arabia expanded the list of African countries where it barred travel because of Omicron, adding Malawi, Zambia, Madagascar, Angola, Seychelles, Mauritius and the Comoros Islands.

The Kingdom earlier halted flights to and from South Africa, Namibia, Botswana, Zimbabwe, Mozambique, Lesotho and Eswatini.

Other Middle East countries, including the UAE, Bahrain, Morocco, and Jordan have issued similar measures. 


Saudi stock market drops 5.3 as Omicron sparks global concern

Saudi stock market drops 5.3 as Omicron sparks global concern
Updated 53 min 1 sec ago

Saudi stock market drops 5.3 as Omicron sparks global concern

Saudi stock market drops 5.3 as Omicron sparks global concern

Saudi Arabia’s main market, the Tadawul All Share Index, opened 5.3 percent lower on Sunday, trading near 10,700 points.


Aramco prepares work on its largest non-associated gas field

Aramco prepares work on its largest non-associated gas field
Updated 28 November 2021

Aramco prepares work on its largest non-associated gas field

Aramco prepares work on its largest non-associated gas field
  • The Saudi-listed firm claims it to be the “largest non-associated gas field” in the Kingdom

DUBAI: Saudi Arabia’s oil giant Aramco is marking the start of its development of the Jafurah unconventional gas field on Nov. 29. 

The Saudi-listed firm claims it to be the “largest non-associated gas field” in the Kingdom. 

The move is part of the Kingdom’s push to commercialize its unconventional resources and expand Aramco’s integrated gas portfolio.