NRG Matters - India’s top refiner to invest $25bn to achieve net-zero emissions; Avaada Group signs $5bn MoU to invest in green ammonia project

India is promoting the production of green hydrogen and ammonia as it aims to turn carbon neutral by 2070.
India is promoting the production of green hydrogen and ammonia as it aims to turn carbon neutral by 2070.
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Updated 25 August 2022

NRG Matters - India’s top refiner to invest $25bn to achieve net-zero emissions; Avaada Group signs $5bn MoU to invest in green ammonia project

NRG Matters - India’s top refiner to invest $25bn to achieve net-zero emissions; Avaada Group signs $5bn MoU to invest in green ammonia project

RIYADH: India’s energy producer Avaada Group has signed a memorandum of understanding to invest 400 billion rupees ($5 billion) in a green ammonia project in the northern state of Rajasthan, according to Bloomberg. 

It is part of the company’s plans to build a 1 million ton-a-year green ammonia facility in the state, creating direct employment for 3,500 people. 

India is promoting the production of green hydrogen and ammonia as it aims to turn carbon neutral by 2070.

Net-zero emissions 

Indian Oil Corp., the country’s top refiner, is planning to invest over $25 billion to achieve net-zero emissions by 2046, Reuters reported citing chairman S.Vaidya.

Vaidya said IOC has prepared a roadmap to achieve net zero Scope 1 and 2 emissions — that is, emissions produced from its crude refining operations and energy consumption.

Most of IOC’s efforts will be targeted at decarbonizing its refineries and petrochemical complexes, which account for 97 percent of its operations, he said.

Hydrogen 

Annual demand for hydrogen as an energy carrier will climb from 1,000 metric tons to 39-161 megatons by 2050, Trade Arabia reported, citing Jostein Bogen, Product Line Manager, Electric Solutions, ABB Marine & Ports.

This sharp increase is attributed to the hydrogen’s potential to decarbonize industries and contribute to a more sustainable society.

In the maritime sector, hydrogen can help owners to meet the International Maritime Organization’s greenhouse gas emissions reduction target of 50 percent by 2050 as compared with 2008 levels. 


Saudi Arabia’s Ajex expands its logistics services to China and Middle East 

Saudi Arabia’s Ajex expands its logistics services to China and Middle East 
Updated 14 sec ago

Saudi Arabia’s Ajex expands its logistics services to China and Middle East 

Saudi Arabia’s Ajex expands its logistics services to China and Middle East 

RIYADH: Saudi firm Ajex Logistics Services has announced the launch of two new services as a part of its expansion strategy into China and the Middle East. 

The services are the AJEX international e-commerce express, known as ICX, and AJEX international express service, called IXS.  

They will provide businesses in China, Saudi Arabia, UAE, and Bahrain with a portfolio of express cross-border delivery services for customers.  

“Introducing ICX and IXS services in China, Saudi Arabia, UAE and Bahrain is an important enhancement to our service portfolio, driven by our customers’ requirements for speed, reliability, and transparency,” said Ajex's Chief Marketing & Experience Officer Nathalie Amiel-Ferrault.  

She added: “Saudi Arabia is the largest e-commerce market in the Middle East, and the end-consumers expect flexibility, late-night deliveries, and ease of payment, with cash-on-delivery representing more than 30 percent of e-commerce.”   

According to the report, customers will be able to send single-piece and multi-piece shipments from China to Saudi Arabia, UAE and Bahrain in four to seven days.  

Ajex is a joint venture between Ajlan & Bros Holding and SF Express. 

For Saudi Arabia, logistics is a crucial sector to achieve its goals outlined in Vision 2030, as the Kingdom is now diversifying its economy, which has been dependent on oil for several decades.  

Earlier in October, while speaking at the Supply Chain and Logistics Conference in Riyadh, Saudi Minister of Transport and Logistics Saleh Al-Jasser said that the Kingdom is working to inaugurate 59 logistic zones to bolster supply chains and logistic services.  

In June, in an exclusive interview with Arab News, Sulaiman Al-Mazroua, CEO of the National Industrial Development and Logistics Program, noted that the Kingdom’s logistics sector needs a huge investment combined between the government and private sector by 2030.  

He added that Saudi Arabia would provide the right business environment to attract world transportation companies to operate in the Kingdom, which will help the nation emerge as one of the world’s busiest logistics centers. 


Green energy exports at heart of new deal with Saudi EXIM Bank and Korea Trade Insurance Corp

Green energy exports at heart of new deal with Saudi EXIM Bank and Korea Trade Insurance Corp
Updated 11 min 21 sec ago

Green energy exports at heart of new deal with Saudi EXIM Bank and Korea Trade Insurance Corp

Green energy exports at heart of new deal with Saudi EXIM Bank and Korea Trade Insurance Corp

 RIYADH: More green energy produced in Saudi Arabia will be exported to South Korea thanks to a new agreement signed between the two countries.

 The Saudi Export-Import Bank has signed a memorandum of understanding with Korea Trade Insurance Corp which will see eco-friendly fuels, including green hydrogen and green ammonia, traded with the Asian nation, the Saudi Press Agency reported.

 As a part of the MoU, both nations will also engage in mutual information exchange on markets and projects.

 According to the report, this deal will also help Saudi’s EXIM Bank to promote the development and diversification of exports to the Republic of Korea, along with providing export financing and guarantee services, securing export credit, and aiding the entry of Saudi products into the Korean market.

 Korea Trade Insurance Corp., also known as K-SURE, is the official export credit agency of the Republic of Korea.

 In October, Saad Al-Khalb, CEO of EXIM Bank, told Arab News that it provided SR20 billion ($5.3 billion) to support the Kingdom’s exports since its establishment in 2020.

 Al-Khalb also noted that the main mandate of EXIM is to support the economy and flow of goods, trades, infrastructure and long-term projects.

 He also added that EXIM Bank always tries to ensure that no Saudi cross-border export fails due to a lack of insurance or financing.

 In May, Saudi EXIM Bank launched its five-year strategic plan, from 2022 to 2026.

 The strategy seeks to close financing gaps and reduce export risks which will help facilitate Saudi non-oil exports to reach various global markets.


UAE In-Focus – Global trade surges 19% in first 9 months of 2022 

UAE In-Focus – Global trade surges 19% in first 9 months of 2022 
Updated 11 min 3 sec ago

UAE In-Focus – Global trade surges 19% in first 9 months of 2022 

UAE In-Focus – Global trade surges 19% in first 9 months of 2022 

RIYADH: The UAE’s global trade increased by 19 percent in the first nine months of 2022, Dubai ruler Mohammed Bin Rashid Al-Maktoum revealed on Wednesday. 

The country's foreign trade volume is expected to reach 2.2 trillion dirhams ($599 billion) by the end of 2022, he said in the tweet, compared to 1.9 trillion dirhams in 2021. 

The UAE's non-oil foreign trade also grew by 18.9 percent in the first nine months of 2022 year-on-year to reach 1.637 trillion dirhams, the minister of state for foreign trade Thani Al Zeyoudi tweeted on Wednesday. 

DIFC-based FinTech firms secure $559m in first 9 months of 2022 

FinTech firms based in the Dubai International Finance Center have raised as much as 2 billion dirhams during the first nine months of 2022, according to the DIFC FinTech Hive’s 2022 FinTech Report. 

In 2021, funding activity associated with finTech almost doubled. In addition to this, startups in the Middle East and North Africa region also secured $998 million in 2021, reflecting a 78 percent surge when compared to 2020 figures. 

The total number of finTech and innovation companies joining DIFC in 2022 has exceeded those that have established operations in 2021. 

ADNOC’s signs $272m worth of food catering agreements  

The Abu Dhabi National Oil Company has signed food catering agreements with four UAE firms worth an accumulated 1 billion dirhams. 

Under the agreements, food catering services will be provided to all companies under ADNOC Group from 2022 up until 2027.  

The four firms are Royal Catering, Apex National Catering, National Corporation for Tourism & Hotels, and Sodexo Kelvin. 

As part of ADNOC’s In-Country Value program, over half of the value from the four contracts will be redirected into the UAE’s economy.  

Abu Dhabi Ports and African Finance Corporation sign agreement  

Abu Dhabi Ports has signed a cooperation agreement with the African Finance Corporation to address infrastructure gaps across Africa, including integrated ports, warehouses, maritime and logistics hubs. 

The agreement comes as the African Union projected that the production capacity of African ports is anticipated to hit two billion tons of goods by 2040.  

This poses a challenge for port work considering that the average waiting time for shipments currently reaches 20 days compared to the current global average of just four.  

In the past 15 years, the African Finance Corporation has invested over $10 billion in infrastructure projects in 37 African countries.


Private education in Saudi Arabia has ‘significant room’ for growth and investment, says global consulting firm

Private education in Saudi Arabia has ‘significant room’ for growth and investment, says global consulting firm
Updated 52 min 57 sec ago

Private education in Saudi Arabia has ‘significant room’ for growth and investment, says global consulting firm

Private education in Saudi Arabia has ‘significant room’ for growth and investment, says global consulting firm

RIYADH: Strong growth drivers in Saudi Arabia have resulted in the Kingdom’s education sector becoming an attractive investment opportunity, says a new report.

According to research by global consulting firm L.E.K, released at the Education Investment Saudi being held in Riyadh on Dec. 7, rapidly increasing household disposable income and growth in the youth demographic shows significant headroom for a return on investments in the Kingdom’s schools.

The analysis revealed that the Kingdom is the largest education market in the Gulf Cooperation Council region, with as many as 8.3 million students enrolled in schools and higher education facilities.

However, Saudi Arabia has a lower share of enrollment in private schools compared to other GCC countries, according to Chinmay Jhaveri, partner at L.E.K. Consulting’s Global Education Practice, adding: “This leaves significant room for growth in the region. As a part of Vision 2030, the government aims to transition to a knowledge-based economy, with education as a critical component, the market is expected to become more favorable for private operators.”

The education sector is one of the main pillars of the Saudi Vision 2030 reform plan, with a special focus on enabling the private sector to play an active role in developing it.  

The significance with which the Kingdom takes education was directly reflected by the portioning the lion’s share of the country’s budget allocation for 2022 to the sector. 

Saudi Arabia’s finance ministry announced 19.37 percent of the Kingdom’s budget, or SR185 billion ($49.2 billion), would be invested in education in 2022.

“A multitude of underlying growth drivers make the KSA education landscape an attractive destination for private investors. Positive macroeconomic factors point to a bright future for the region’s education sector, with the demographic outlook suggesting a sizable market opportunity and an increase in household income, creating a demand for quality private education,” said Danish Faruqui, partner at L.E.K. Consulting, and a founding member of the firm’s Global Education Practice.  


PIF’s National Water Co. launches $23m environmental project in Qassim

PIF’s National Water Co. launches $23m environmental project in Qassim
Updated 07 December 2022

PIF’s National Water Co. launches $23m environmental project in Qassim

PIF’s National Water Co. launches $23m environmental project in Qassim

RIYADH: National Water Co., a joint stock firm fully owned by the Public Investment Fund, has announced the completion of an SR89.8 million ($23 million) environmental project in Saudi Arabia’s central Qassim region. 

The new project will provide sanitation services to a projected 27,000 recipients across 29 neighborhoods in the region. 

In a press release, NWC indicated that networks with a length of 108,634 meters were extended, and 3,519 household connections were implemented across the governorates of Onaizah, Al-Rass, Al-Muthnab, Al-Bukairiyah, Al-Bada’i, Al-Khubra and Riyadh. 

Its sanitation project also includes the construction of a pumping station in Al Bukayriyah Governorate with an estimated capacity of 7,280 cubic meters per day. The station is anticipated to serve over 27,207 citizens. 

The project also falls in line with NWC’s goal to elevate the level of customer service, expand coverage rates for sanitation services, and raise the operational efficiency of services. 

Earlier this year, in August, NWC announced plans to roll out 1,429 projects for tender with a total value exceeding SR108 billion, as part of its strategy to support the Kingdom's five-year plan to develop the sector's infrastructure.   

Terming this as the largest package of projects ever in the water distribution sector, NWC said the announcement is part of its continued plans and programs for developing water and environmental infrastructure.   

This includes expanding the coverage of water and wastewater networks and increasing sewage treatment plant’s capacity, in addition to extending water services coverage to all citizens and residents across the Kingdom regions, it said.   

“The projects will contribute to the realization of the National Water Strategy and Vision 2030’s objectives, diversify the economy and boost overall development,” NWC Acting CEO Nemer M. Al-Shebl said in a statement. 

He noted that these projects will greatly complement the sustainability of water and environmental services. “The water and wastewater coverage will be immensely increased in all Saudi regions following the completion of these projects,” added Al-Shebl.