Global cooperation on climate is vital to drive sustainable tourism, Saudi minister tells UN

Saudi Arabia’s minister of tourism Ahmed Al-Khateeb addresses UN members at a UN High Level Debate. (Supplied)
Saudi Arabia’s minister of tourism Ahmed Al-Khateeb addresses UN members at a UN High Level Debate. (Supplied)
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Updated 06 May 2022

Global cooperation on climate is vital to drive sustainable tourism, Saudi minister tells UN

Global cooperation on climate is vital to drive sustainable tourism, Saudi minister tells UN
  • We must work collaboratively to put sustainable and resilient tourism at the heart of inclusive recovery, to ensure long-term sector resilience for people and the planet,’ said Ahmed Al-Khateeb

NEW YORK: Climate action is essential to help ensure a sustainable future for the global tourism industry, Saudi Arabia’s tourism minister told the UN on Thursday.

In a speech during the 76th Session of the UN General Assembly, Ahmed Al-Khateeb underscored the vulnerability of the sector in the aftermath of the COVID-19 pandemic and amid the ongoing effects of climate change and extreme weather events.

He pointed out that carbon dioxide emissions resulting from tourism are forecast to increase by 25 percent by 2030, compared with 2016 levels, and it is therefore “critical” that action on climate change be scaled up.

“The tourism sector lost an estimated 62 million jobs globally during the global pandemic,” he said. “COVID-19 highlighted the vulnerability of the sector, not only to pandemics but also to the effects of extreme weather.

“Addressing climate change is at the heart of building a more resilient tourism industry and there is no resilience without sustainability. We must work collaboratively to put sustainable and resilient tourism at the heart of inclusive recovery, to ensure long-term sector resilience for people and the planet.

“Only by doing these things together will we ensure a better and more resilient future for the millions of people around the world who rely on tourism.”

Al-Khateeb said the effects of the pandemic had underscored the need to secure the future of the tourism sector and further highlighted the need to protect the environment.

Saudi authorities have launched a range of biodiversity and conservation initiatives designed to breed and protect endangered species, in line with the aims of the country’s Vision 2030 development and diversification plan.

By the end of the decade, the Kingdom aims to be conserving a total area of land 11 times the size Belgium and has committed to protecting 20 percent of its land, coastal and marine environments. In partnership with the Middle East Green Initiative, as part of which 40 billion trees will be planted across the region, the project will restore 200 million hectares of degraded land. This represent 5 percent of a global target of planting 1 trillion trees.

At COP 26, the UN Climate Change Conference held in Glasgow last November, Saudi Arabia’s Crown Prince Mohammed bin Salman announced the launch of the Sustainable Tourism Global Center, a multi-stakeholder platform for action that will help to accelerate the sector’s transition to net-zero emissions.

In addition, a new Tourism Panel on Climate Change, a climate science assessment and measurement initiative by the STGC, will help to advance climate-resilient tourism and demonstrate the important role of the travel and tourism sector in contributing to improved human development.


UAE Central Bank launches digital currency strategy  

UAE Central Bank launches digital currency strategy  
Updated 13 sec ago

UAE Central Bank launches digital currency strategy  

UAE Central Bank launches digital currency strategy  

RIYADH: The Central Bank of UAE has launched its digital currency implementation strategy, a part of the bank’s Financial Infrastructure Transformation initiative, as the emirate aims to become a regional financial hub.  

Aimed at developing the proper infrastructure and technology needed to implement cyber cash, the bank signed new deals with cloud computing company Group 42 Cloud and financial digitization provider R3.  

The first phase of the strategy is set to be completed in 12 to 15 months and will comprise three significant pillars, including the soft launch of mBridge which helps facilitate real value cross-border central bank digital currency transactions.  

The second pillar is to create a proof-of-concept for bilateral digital currency bridges with India, which is one of the UAE’s top trading partners, while the third aspect is to prove efficiency for domestic issuance in wholesale and retail sectors.  

“Central bank digital currency is one of the initiatives as part of the Central Bank’s FIT program, which will further position and solidify the UAE as a leading global financial hub,” Khaled Balama, Governor of UAE Central Bank, said. 

The FIT program is a set of nine initiatives that aim to help the UAE become a regional financial hub. The implementation of the program is divided into three phases and will be fully completed by 2026.  

In its first phase, the program aims to boost the UAE’s financial sector by enabling digital currency, launching a card domestic scheme, and establishing an instant payment platform.  

“The launch of our digital currency strategy marks a key step in the evolution of money and payments in the country. Central Bank Digital Currency will accelerate our digitalization journey and promote financial inclusion. We look forward to exploring the opportunities that CBDC will bring to the wider economy and society,” Balama added.  

Implementing digital currency will support the UAE in serving a secure and cost-effective form of payment.  

The strategy will further strengthen the country’s payment infrastructure by providing additional payment channels and ensuring a reliable financial system. 


SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 
Updated 23 March 2023

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

SAMA and GCC banks follow Fed’s 25 bps interest rate hike 

RIYADH: The Saudi Central Bank has increased its interest rate by 25 basis points to 5.5 percent, echoing Wednesday’s move by the US Federal Reserve to curb inflation. 

A statement from the bank, also known as SAMA, noted its Reverse Repo rate has also increased to 5 percent.   

While inflation is still on the rise in the Kingdom, the annual rate eased to 3 percent in February, down from 3.4 percent the previous month.  

The Fed’s quarter-point interest rate hike follows months of larger increases, as it hiked 25 basis points in February, 50 basis points in December, and 75 basis points in November, September, July and June. 

While the US Central Bank’s decision was driven by its desire to lower high inflation, this played a part in driving the Gulf region’s monetary policy, as most of the region’s currencies are pegged to the dollar.  

Following the US Fed’s decision, regional central banks also swung into action to raise their interest rates.  

Furthermore, the UAE's central bank increased its base rate to 4.9 percent, effective on Thursday. 

Bahrain also raised its main rate by 25 basis points, with its one-week deposit facility rate rising to 5.75 percent, while the overnight deposit rate hit 5.5 percent.  

Qatar’s central bank, which had kept its rates unchanged last month, increased its lending and deposit rates to 5.75 percent and 5.25 percent respectively.  

Inflation in the GCC region is higher than it was in almost 10 years, but still lower than numerous western countries, ranging between 5 and 6 percent last year. 

Despite recent signs of a slow-down in the US economy, prices are running at their highest level since the early 1980s.  

Rising interest rates increase the cost of borrowing for consumers, leading to more expensive mortgage bills and loan repayments – something that can lead to reduced spending on other items as people try to reduce costs. 

However, savers benefit from the interest rates rise, with money stored away gaining a greater return. Yet, with inflation across the globe still running hot, any extra interest gained by savings is lower than the rising cost of goods and services.


Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output
Updated 23 March 2023

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

Oil Updates — Crude dips; China plans to use renewable energy to help boost gas and oil output

RIYADH: Oil prices fell on Thursday following three sessions of gains, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world’s largest economy, while US crude stocks rose more than expected.

Brent crude futures had fallen 42 cents, or 0.55 percent, to $76.27 a barrel at 11.00 a.m. Saudi time, while US West Texas Intermediate crude dropped 50 cents, or 0.71 percent, to $70.40.

Both crude benchmarks settled on Wednesday at their highest closes since March 14 after the dollar slid to a six-week low.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with “significant” implications for an economy that US central bank officials projected would slow even more this year than previously thought.

Meanwhile, US crude oil stockpiles rose unexpectedly last week to their highest in nearly two years, the latest data from the Energy Information Administration showed.

US Crude inventories rose in the week to March 17 by 1.1 million barrels to 481.2 million barrels, the highest since May 2021. 

China plans to use renewable energy to help boost gas and oil output

China plans to use renewable energy sources such as wind and solar to provide onsite power for enhanced oil and gas recovery techniques, according to the National Energy Administration.

Gas output could be increased by 3 billion cubic meters through pressure-boosted mining techniques, the NEA said in an action plan for 2023-2025 issued late on Wednesday.

Crude oil production could be lifted by more than 2 million tons through renewable-powered carbon dioxide flooding and thermal recovery techniques, it added.

In addition to enhancing output at existing sites, the NEA proposed increased exploration of both onshore and offshore oil and gas that would also draw on renewable power sources.

The development of renewable-supported oil and gas facilities has particular potential in northern and western parts of the country such as Xinjiang, Gansu and Heilongjiang, it said.

The blueprint for an “integrated development” of renewable and conventional energy resources comes as Beijing increasingly stresses the country’s need for energy security, including a new emphasis on a continuing role for coal.

Despite a massive rollout of renewable power sources — renewables accounted for 76.2 percent of newly installed energy capacity last year — traditional fuel sources form the backbone of the country’s energy supply.

Coal power accounted for 56.2 percent of China’s energy consumption last year, while oil provided 17.9 percent and gas 8.5 percent, according to data from the National Bureau of Statistics.

The NEA also highlighted the importance of demand-side reforms, such as reducing power usage at peak times, as well as increasing energy storage and ‘smart grid’ systems.

Energean sees output of up to 158,000 boed this year

Eastern Mediterranean-focused gas producer Energean on Thursday forecast its 2023 output would reach 131,000-158,000 barrels of oil equivalent per day after the start-up of its flagship Israeli Karish field.

Karish, which uses a floating production, storage and offloading vessel, is set to deliver 4.5-5.5 billion cubic meters of gas to Israel this year, with Energean ramping up capacity to 8 bcm.

It expects its production to reach 200,000 boed by the second half of 2024.

Energean’s previous production stood at around 41,000 boed.

(With input from Reuters) 


Singapore-based carbon exchange CIX to launch nature-based contract

Singapore-based carbon exchange CIX to launch nature-based contract
Updated 23 March 2023

Singapore-based carbon exchange CIX to launch nature-based contract

Singapore-based carbon exchange CIX to launch nature-based contract

SINGAPORE: Carbon exchange Climate Impact X, known as CIX, said on Thursday it will launch a nature-based standardized contract, whose sale will give buyers credits and proceeds that are intended to be used to help save forests. 

NBS credits can be generated through schemes such as planting trees or protecting forests that could be destroyed to make way for development projects if no financial incentive is given to preserve them. Many polluting companies seek to use carbon offsets including NBS credits to compensate for pollution from their operations. 

Critics say offsets allow greenhouse gas emitters to continue polluting and don't materially contribute to reducing emissions. 

The contract CIX Nature X will trade under the contract code "CNX" on its spot trading platform, and eligible projects include rainforests and biodiversity reserves in Asia, Africa and South America, Singapore-based CIX said. 

CIX is a joint venture between banks DBS and Standard Chartered, Singapore Exchange and Singapore state investor Temasek Holdings. 

"In curating projects for contractual delivery into Nature X, CIX considers the size of a project by volume of issued and unretired credits," CIX said, adding recognition by market participants and rating agencies were also deciding factors. 

Projects eligible for the CNX contract include Kasigau Corridor REDD Project in Kenya, Rimba Raya Biodiversity Reserve Project in Indonesia and the Cordillera Azul National Park REDD Project in Peru. 

Each lot of CNX equates to 1,000 carbon credits, where each credit represents one tonne of reduced or avoided carbon dioxide from the verified projects, CIX said. 


Brent plunge fails to displace Russian crude for Asian buyers

Brent plunge fails to displace Russian crude for Asian buyers
Updated 23 March 2023

Brent plunge fails to displace Russian crude for Asian buyers

Brent plunge fails to displace Russian crude for Asian buyers
  • Middle East crude prices in Asia appear to be resilient as the market bets on robust demand from China
  • With Russian crude so cheap, a move of a few dollars on Brent-Dubai EFS or even freight would not make a difference

SINGAPORE/LONDON: A plunge in Brent crude prices has narrowed the spread between Atlantic Basin and Middle East benchmarks but has failed to spur interest from Asian refiners, which are instead buying up discounted Russian oil, leaving an overhang in African supply.
Global oil benchmark Brent tumbled more than 10 percent over the past two weeks, touching a 15-month-low of $70.12 a barrel on Monday, as investors have fretted over banking sector turmoil in the US and Europe and as strikes in France have dented oil demand.
Middle East crude prices in Asia appear to be resilient as the market bets on robust demand from China, which is rebounding from zero-COVID restrictions that formerly squeezed its economy.
The Brent-Dubai Exchange for Swaps (EFS), representing the premium of light sweet Brent over Middle East sour crude Dubai, shrank to $1.40 a barrel this week, its narrowest in more than two years.
A tighter EFS typically means Brent-linked crude produced in the Atlantic Basin, including from West African countries, becomes more economical for Asian buyers.

But traders have not seen a significant uptick in Asian demand for West African crude, because the cargoes remain much more expensive than Russian oil, even though they have gained competitiveness over Middle Eastern crude.
With Russian crude so cheap, a move of a few dollars on Brent-Dubai EFS or even freight would not make a difference, other than providing Chinese buyers with a tool to drive prices lower, said a West African crude trader.
Russia’s light sweet ESPO crude for May delivery is traded at a discount of about $6.80 a barrel against the ICE Brent on the deliver-ex-ship (DES) basis to northern China, trading sources said. Meanwhile, Congo’s Djeno, a medium sweet crude favored by Chinese refiners, is assessed at a premium of $1.50 a barrel above ICE Brent for May delivery on DES basis.
The pattern is similar in India, where Russian crude is delivered at discounts to Dubai quotes while West African oil is loaded at parity or a slight discount to dated Brent, an Indian trader said.
Russia became the top crude supplier to China and India in recent months, eroding the market share of other suppliers such as West African countries.
Just over 30 million barrels of West African crude have been loaded for Asia in March, the smallest volume since 2014 or earlier, shipping data from Refinitiv and Kpler showed.
The slowing exports of West African crude are exacerbating a supply overhang in the West of Suez market and weighing down the Brent prices that the West African grades are pegged to.
On Tuesday, about 20 million barrels of Nigerian crude for April loading were still unsold, just as the trade cycle for May cargoes was about to kick off. About four April-loading Angolan crude cargoes were also awaiting buyers.
In the past three months, Nigeria has exported around 42 million barrels of crude on average each month while Angola’s average monthly exports have been around 33 million barrels.