Riyadh no longer one of the 100 most expensive cities for expats: Mercer

Riyadh no longer one of the 100 most expensive cities for expats: Mercer
Riyadh was positioned at 103 in Mercer's Cost of Living Index 2022, falling from 29 in the previous year’s list (Shutterstock)
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Updated 03 July 2022

Riyadh no longer one of the 100 most expensive cities for expats: Mercer

Riyadh no longer one of the 100 most expensive cities for expats: Mercer

RIYADH: Saudi Arabia’s capital, Riyadh, has dropped 72 places in a ranking of the world’s most expensive cities for expats as it tumbled out of the top 100, according to a report issued by Mercer.

Riyadh was positioned at 103 in Mercer’s Cost of Living Index 2022, falling from 29 in the previous year’s list. 

Commenting on Riyadh’s fall, Khaled Al-Mobayed, CEO of Menassat Reality Co., a Riyadh-based real estate developer, said: “The results came in contrary to the expectations, due to the pandemic’s ongoing consequences and the rising cost of logistics and supply chain.”

“Being out of the 100 top expensive cities is a good sign despite the challenges that the economy has gone through,” he added.

UAE's Dubai took over Lebanon's capital, Beirut, as the most expensive city among Arab countries in the region, ranking 31.

Despite being placed third in 2021, Beirut was not even on this year’s list of 227 cities due to the country’s economic turmoil.

The city’s fall reflects the severe drop in value of the Lebanese pound, according to Lebanese economic analyst Bassel Al-Khatib, who pointed out the minimum wage is now worth $20, while it was $450 before the economic crisis gripping the country. 

“Lebanon is extremely expensive to those who get paid in Lebanese pounds yet very cheap for those who get pain in US dollars,” he told Arab News, adding: “Lebanon was expensive for both citizens and foreigners, and with the currency dropping 95 percent and the dollar reaching record levels, the situation changed.”

“Everything has become expensive but not for foreigners who have dollars. All services by the government such as water, electricity fees, or internet are still the same but food prices skyrocketed,” he added.

Abu Dhabi was the second highest Arab city from the region, ranked at 61, while Jeddah came in at 111 this year compared to 94 in 2021.

Jordan's capital Amman ranked 115, followed by Bahrain's Manama at 117, Oman's Muscat at 119 and Kuwait city at 131.

Egypt's capital, Cairo, was placed at 154 while Rabat, Algiers and Tunis came as the least expensive in the region, ranking 162, 218 and 220 respectively.

Hong Kong topped the list as the most expensive city in the world in 2022, moving from second rank last year and taking the top spot from Turkmenistan’s capital, Ashgabat.

Switzerland’s Zurikh and Geneva followed as second and third most expensive cities, replacing Hong Kong and Beirut respectively.

Turkey’s capital, Ankara, came in as the least expensive city, ranking 227, taking the spot from Kyrgyzstan’s capital Bishkek.

Oil Updates — Crude up; IEA chief says price caps hit Russia’s export revenue  

Oil Updates — Crude up; IEA chief says price caps hit Russia’s export revenue  
Updated 12 sec ago

Oil Updates — Crude up; IEA chief says price caps hit Russia’s export revenue  

Oil Updates — Crude up; IEA chief says price caps hit Russia’s export revenue  

RIYADH: Oil prices inched up in early trade on Monday after falling around 8 percent last week to more than three-week lows as jitters over major economies outweighed signs of a demand recovery in China, the world’s top oil importer. 

Brent crude futures crawled up 24 cents, or 0.30 percent, to $80.18 a barrel at 08.30 a.m. Saudi time, while US West Texas Intermediate crude futures rose 12 cents, also 0.16 percent higher, to $73.51 a barrel. 

Last Friday, WTI and Brent slid 3 percent after strong US jobs data raised concerns that the Federal Reserve would keep raising interest rates, which in turn boosted the dollar. 

Price caps hit Russia’s export revenue by about $8 billion in January: IEA 

Price caps on Russian oil likely hit Moscow’s revenues from oil and gas exports by nearly 30 percent in January, or about $8 billion, from a year ago period, International Energy Agency chief Fatih Birol said on Sunday 

He said the growth in global oil demand this year will come from China and that may need the Organization of Petroleum Exporting Countries and its allies, known as OPEC+, to look at their output policies. 

“And now this year Chinese economy is rebounding...this is putting upward pressure on the demand,” he said referring to the ‘exploding’ demand for jet fuel in China. 

Germany’s Scholz says Berlin is preparing wind power roadmap: Bild 

Berlin is preparing a roadmap for speedy wind power plant constructions to achieve a planned roll-out of renewable energy to meet climate goals for 2030, Chancellor Olaf Scholz said in a newspaper interview on Sunday. 

Germany aims to cut 65 percent of carbon dioxide emissions by 2030 compared with 1990 and to become carbon-neutral by 2045. 

“By 2030, there will be an average of four to five onshore wind turbines on land every day,” Scholz, a Social Democrat, told the Bild am Sonntag. 

“Every month, there will be a discussion with the states on how far they have progressed. Anything that is not done on time must be made up for,” said the Chancellor. 

The energy crisis, brought about by the war in Ukraine, has shown Germany’s resilience amid supply shocks, he said. 

But beyond that capability, more innovation and modernization of Germany’s export-geared manufacturing industry was necessary. 

Once the expansion of wind and solar power was progressing in full swing, Europe’s biggest economy would become less dependent on imports of fossil fuels such as gas, coal or crude oil, he said. 

Berlin has approved measures to speed up the wind and solar power roll-out as well as that of offshore wind. 

In total, Germany should have access to 360 megawatts of green electricity capacity by 2030. 

(With input from Reuters) 

Closing bell: TASI plunges 143 points to close at 10,589 

Closing bell: TASI plunges 143 points to close at 10,589 
Updated 05 February 2023

Closing bell: TASI plunges 143 points to close at 10,589 

Closing bell: TASI plunges 143 points to close at 10,589 

RIYADH: Saudi Arabia’s Tadawul All Share Index on Sunday lost 143.21 points — or 1.34 percent — to close at 10,588.58. 

MSCI Tadawul 30 Index dropped 1.45 percent to 1,454.10, while the parallel market, Nomu, slipped 0.48 percent to 18,905.15. 

TASI’s total trading turnover of the benchmark index was SR3.77 billion ($1 billion), with 46 stocks of the listed 224 advancing and 172 retreating. 

The worst performer was Al Yamamah Steel Industries Co., which crashed 5.06 percent to SR22.90. Other stocks that performed poorly were Saudi Printing and Packaging Co., Saudi Arabian Amiantit Co., Halwani Bros. Co. and Arabian Pipes Co. — all falling in the 4 percent range. 

Americana Restaurants International PLC was the top gainer, rising 4.76 percent in the week's first trading session to SR3.74.  

The other top gainers were Makkah Construction and Development Co., Buruj Cooperative Insurance Co., Amana Cooperative Insurance Co. and Salama Cooperative Insurance Co. 

Among sectoral indices, 18 of the 21 listed on the stock exchange declined, while the rest advanced. 

The Software & Services Index took the biggest hit plunging 1,104.79 points to close at 39,941.28. 

On the announcements front, Etihad Atheeb Telecommunication Co. informed the stock exchange that it booked a net profit of SR13 million in the nine-month period that ended on Dec. 31, 2022, from a net loss of SR 29.2 million in the year-ago period.  

The profit was driven by higher revenue, lower allowance for impairment in trade receivables, lower general and administrative expenses, and financial charges. 

The telco turned to a net profit of SR 8 million in the third quarter of 2022-2023, against a net loss of SR7.37 million a year earlier. Its share price fell 0.14 percent to SR69.90. 

Al Moammar Information Systems announced that it was awarded a project with a legal entity on Jan. 29 for SR42.4 million, including value added tax.  

The project includes the renewal of the technical support service for infrastructure systems, and the company expects to sign the contract on Feb. 28, it said in a statement. Its share price fell 0.43 percent to SR93.60. 

Meanwhile, Saudi Industrial Investment Group disclosed that the unplanned maintenance works in its subsidiary, Saudi Polymers Co., are still ongoing due to the nature of the mechanical repairs, which require additional downtime to guarantee safe and reliable operations.  

SIIG said that it expects to restart its operation a week later. Its share price fell 2.71 percent to SR22.28. 

Meanwhile, Batic Investments and Logistics Co.’s fully-owned subsidiary, Batic Real Estate Co., said, on Feb. 2, that it received the approval of Madinah Municipality to develop the Al-Khuzama residential neighborhood community. Its share price stayed flat at SR23.44. 

Energy-rich countries should lead transition journey, says IAEE president

Energy-rich countries should lead transition journey, says IAEE president
Updated 05 February 2023

Energy-rich countries should lead transition journey, says IAEE president

Energy-rich countries should lead transition journey, says IAEE president

RIYADH: Stressing the need for cooperation in the journey toward energy transition, the president of the International Association of Energy Economics said the shift should be led by energy-rich countries.

“Energy tech is coming to strengthen energy transition. Oil and gas-rich countries are now building their own way for the energy transition. The energy transition is not coming from western countries or India or China, and it is being led by energy-rich countries, but we have to learn, what time, what speed, etc,” Jean-Michael Glachant said. He also made it clear that financing is the key to achieving these goals.

In an exclusive interview with Arab News, Glachant said it will take another 30-50 years to achieve a transition to green energy.

“We are not close. But we are really starting. For about 15 years, we discussed; should we start, and when should we start. And now we are all understanding, yes, we have to do it. It will take 30 to 50 years,” he said.

“As long as we stay together, we are able to contain the damage. We have to find a way to compensate for damages because some countries will suffer more, while other countries less.”

The IAEE official said his organization is not just grateful but also lucky to host its 44th conference in Saudi Arabia, as the country is one of the key players in accelerating the global energy transition.

Glachant said that in line with its Vision 2030 blueprint, the Kingdom is charting its national sustainability path and setting an example for the rest of the world.

“There are many many advantages for IAEE to have Saudi Arabia as the host country. We are an association for energy economics. Saudi Arabia is building its own national sustainability path with its 2030 agenda. It is not only a pleasure, but it is an honor to enter the Kingdom and to discuss and interact with open-minded people of the region,” said the IAEE president.

“Saudi Arabia is leading a voice of the developing world in energy affairs. And we, at IAEE, want to discover what we can learn from Saudi Arabia,” he added.

It should be noted that the 44th IAEE conference is taking place in Riyadh from Feb. 4-9, and this is for the first time this event is being hosted in the Middle East.

“In this program, you would see that no big region in the world has been left behind. Really, the Saudis have done their best to have all the relevant people and all the relevant issues being put together,” he said.

According to Glachant, Saudi Arabia has several ideas about sustainable energy transition to share with the world and the IAEE event will serve as the perfect platform to showcase and discuss those ideas.

“To learn something is the core of the IAEE conference. When we do not learn something, the event is a failure. This is the first event in Saudi Arabia. Saudi Arabia is becoming independent in the way it is seeing the future and becoming rich to finance the future. If we cannot learn from such a place, I think we are sick,” he noted.

Glachant noted that the Middle East and North Africa region is leading the energy sector in the world and that the Saudi capital Riyadh is one of the most prominent global destinations for business and finance.

“Saudi Arabia is the world’s No. 1 country in terms of growth these days; not just growth in the oil sector, but also in the non-oil sector. So, Saudi Arabia is doing the unexpected by exploring new paths,” added Glachant.

He also lauded the efforts of the King Abdullah Petroleum Studies and Research Center in Saudi Arabia in carrying out research and framing energy policies to support a sustainable transition to green energy.

According to Glachant, the IAEE conference in Riyadh will help exchange ideas with big names in the region, and added that MENA is the “hotspot of energy which is also building its own energy economy.”

Glachant pointed out that there are several pillars of the energy transition, which include technology and innovation, direct and indirect investments, etc.

“It (energy transition) is a kind of car race. When you see your neighbor driving faster, sometimes, you try to do better than your neighbor,” he added.

Glachant was of the view that more progress was needed in the maritime and aviation sectors to meet sustainable targets.

“It is about technology innovation. We have to find ways of having that (aviation and maritime sectors) sustainable in a different way. Some planes run on electricity for small distances. But for long distances, what do we do? For maritime, what do we do,” Glachant questioned.

Energy transition has different meanings for each country, says French AEE president 

Energy transition has different meanings for each country, says French AEE president 
Updated 05 February 2023

Energy transition has different meanings for each country, says French AEE president 

Energy transition has different meanings for each country, says French AEE president 

RIYADH: There are different solutions to make energy a strong tool for economic development, as energy sources to reach mass consumption have to be economically feasible too, said a top industry expert. 

As the world has gathered for the 44th IAEE conference in Riyadh, the president of the French Association for Energy Economics, Christophe Bonnery, told Arab News in an exclusive interview that “energy transition has a different meaning from one country to another.”  

For instance, France has a big portfolio of nuclear and this is developing the future of the French energy system. 

Talking about different renewable energies, he said the strongest one is solar PV. “This is because if you look at the radiation from the sun to the earth, it brings a lot of energy.”  

Bonnery pointed out that technology does matter, and so is how you transform it into a form of energy that can be used for different consumers.  

“If you look at what is efficient, what is existing today, clearly the most important renewable energy is the hydraulic industry that has been existing for decades, if not centuries.” 

According to him, this is the most important technology that is existing today.  

“The future also belongs to wind energy and wind has to be developed in countries where you have wind, and it is not the case in every place.” 

Bonnery said that all these technologies have come under the same characteristic, which is also the case for nuclear, that it consumes a lot of capital. 

“You have to put the capital cost upfront, and this is generating some financing issues, then only a few countries can come under.” 

Bonnery pointed out that Saudi Arabia has the chance to be able to finance it, to afford these new technologies. “In some developing countries, it’s more difficult to find financing solutions.” 

He said that the Kingdom can help other countries willing to go to energy transition programs to develop their own programs. 

The 44th IAEE conference which is taking place at King Abdullah Petroleum Studies and Research Center discussed seven key topics such as energy volatility, security and access, and energy transition and pathways in investment and financing. 

KSA to continue playing key role in traditional and renewables energy sectors: S&P Global top official

KSA to continue playing key role in traditional and renewables energy sectors: S&P Global top official
Updated 05 February 2023

KSA to continue playing key role in traditional and renewables energy sectors: S&P Global top official

KSA to continue playing key role in traditional and renewables energy sectors: S&P Global top official

RIYADH: Saudi Arabia is not just an oil-producing country, but also an unquestionable name in the entire energy sector, as the Kingdom hosts the 44th conference of the International Association for Energy Economics for the first time in the Middle East and North Africa region in Riyadh, according to a top expert. 

In an exclusive interview with Arab News on the sidelines of the conference, Daniel Yergin, vice chairman of S&P Global said that Saudi Arabia will continue to play a crucial role in both traditional energy sectors and renewables. 

“This conference is very important for the region and for Saudi Arabia. It underscores the fact that Saudi Arabia is not just a country for oil, but it is a country for energy, and Saudi Arabia’s role in energy transition as it continues to supply the oil the world needs,” said Yergin. 

He added: “Saudi Arabia is going to continue to be at the forefront as an oil producer. But also what you see in Saudi Arabia is much more use of renewables, particularly, solar for generating electricity." 

The S&P Global executive said that the big question before the global industry is the role of hydrogen, adding that if there is a global market for hydrogen, "Saudi Arabia will play an important role in that.” 

The IAEE conference comes at a time when Saudi Arabia is adopting several measures including the launch of the Voluntary Carbon Market to achieve the net-zero target by 2060. 

According to Yergin, the energy transition will not happen quickly, as the majority of the world countries are still dependent on hydrocarbon. 

“You just have to look at the numbers. Over 80 percent of world energy today is hydrocarbons. Energy transition, you are going to change it overnight. It will change. We have a developing world with 80 percent of the people that has far less energy, and they need energy for development,” added Yergin. 

He further noted that energy transition should be looked at from a global perspective rather than looking only through the lens of Europe and North America. 

“It (energy transition) takes time for it to happen. And there is a tendency to focus on the developed world and to underestimate the energy needs of the developing world where 80 percent of the people live, and their per capita income may be just five or 10 percent of the income in the developed world,” Yergin said. 

The S&P Global vice chairman noted that the mining sector will also have a crucial role to play in the energy transition, as the demand for minerals will witness a dramatic rise in the future. 

He added that the 44th IAEE Riyadh conference is highlighting the significance of minerals, which has not been part of the discussion in the event’s previous editions. 

“For instance, an electric car takes two and a half times more copper than a conventional car. That has to be mined, and it takes 16 to 25 years to open a new mine. I think, there is still an imbalance on how people are assessing the objective for energy transition, and materials needed for it,” he pointed out. 

According to Yergin, the economic growth in China and the way in which the Asian giant comes out of the Covid-related lockdown will have direct impacts in determining the price of oil. 

He further noted that the ongoing conflict in Ukraine has changed the global energy map, especially after the EU introduced a price cap on Russian oil. 

“It is unprecedented what is happening because Europe said no to Russian energy, and Europe has been the main market for Russian energy. You also have price caps on Russian oil. And this is not merely an economic experiment. This is a geopolitical development that is happening,” said Yergin. 

Talking about S&P Global’s economic forecast for 2023, Yergin said that this year will witness global economic growth of 1.9 percent. He added that there is a possibility of a mild recession in the US and Europe.

“In 2024, we see global growth going back to around 3 percent. So, 2023 is going to be a transitional year for the global economy. It is compounded by the uncertainties of the Ukraine war. If that escalates, then it will introduce new risks,” Yergin added.