Experts to discuss pathways for a clean, sustainable future

To be held for the first time in the Middle East and North Africa region, the event is set to take place at the King Abdullah Petroleum Studies and Research Center in Riyadh in cooperation with the Saudi Association for Energy Economics. File
To be held for the first time in the Middle East and North Africa region, the event is set to take place at the King Abdullah Petroleum Studies and Research Center in Riyadh in cooperation with the Saudi Association for Energy Economics. File
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Updated 01 February 2023

Experts to discuss pathways for a clean, sustainable future

Experts to discuss pathways for a clean, sustainable future
  • The IAEE conference in Riyadh to serve as a platform to deliberate on pressing challenges, strategies

CAIRO: Saudi Arabia will host the 44th International Association for Energy Economics International Conference from Feb. 4-9 to discuss the path for a sustainable future. 

To be held for the first time in the Middle East and North Africa region, the event is set to take place at the King Abdullah Petroleum Studies and Research Center in Riyadh in cooperation with the Saudi Association for Energy Economics. 

“It will be the first time the IAEE is organizing its annual conference in the MENA region, a region that has produced more than 40 percent of the world’s oil and gas over the past two decades,” Fahad Alajlan, KAPSARC president, said in a statement. 

The event will be addressing critical topics under the theme “Pathways to a clean, stable and sustainable energy future” by facilitating academic evidence-based solutions and providing a platform for productive dialogue and problem-solving capacities 

The conference is set to host over 500 delegates from over 40 nationalities to participate in 10 plenary sessions. 

In-depth topics include carbon capture, circular carbon economy, the role of hydrogen in energy transition, the impact of oil price volatility on supply and investment, and the challenges facing the power sector in the MENA region. 

The conference provides the opportunity for academia, industry, government and scientific experts to assess the evolving energy landscape to explore ideas and strategies to ensure the future of a low-carbon future. 

“Since its inception, KAPSARC has been very active in conducting critical research on energy economics and climate sustainability. The upcoming IAEE conference, hosted for the first time in the Middle East, is a wonderful opportunity to visit KAPSARC and Saudi Arabia’s capital, Riyadh,” Yukari Yamashita, IAEE’s managing director, said in a statement. 

The event will host high-level attendees featuring keynotes sessions, workshops and plenary discussions to shape policies around the climate agenda. 

On Feb. 4, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman will inaugurate the event with a keynote speech followed by a conversation with Daniel Yergin, vice chairman at S&P Global. 

Before the energy minister’s key note address, the event will host an invitation-only IAEE Council meeting followed by a Young Professionals and Scholars Day in Hilton Riyadh. 

On the second day of the event, Alajlan will give his opening remarks accompanied with Majid Al-Moneef, chairman of the board at SAEE and Jean-Michel Glachant, IAEE president. 

The first plenary session will be themed “Energy Volatility, Security, and Access.” It will outline modern energy access in rural and developing regions in line with solving the world’s problems in economic growth and prosperity. 

The second day will feature dual-track sessions titled “Energy Investments and Financing’ and ‘Energy and Trade.” 

Day three will include a plenary session titled “Pathways to Energy Transitions” to explore whether climate ambitions and energy security can be harmonized by raising the question: What realistic pathways could best meet global and regional goals and the aspirations of a just energy transition? 

It will be followed by dual sessions as track one will hold the session “Energy, Development, and Climate Change” to explore the link between economic development and environmental conservation by highlighting factors that can simultaneously ensure the pursuit of both. 

HIGHLIGHTS

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman will inaugurate the event with a keynote speech followed by a conversation with Daniel Yergin, vice chairman at S&P Global. 

The event will host an invitation-only IAEE Council meeting followed by a Young Professionals and Scholars Day in Hilton Riyadh. 

Day six will be a technical tour of the Shaybah Oil Production Facility in Rub Al-Khali, the largest extended desert in the world. 

The tour will include visits to Saudi Aramco’s Shaybah facility as well as the 637 sq. km Shaybah Wildlife Sanctuary, an Aramco-sponsored biodiversity protection area that is home to native plant and animal species. 

Track two will lead the examination of problems from technology to geopolitics to gain a more descriptive insight into the underappreciated aspect of the energy transition in a session themed “Energy, Water, Food, and Minerals Interconnections.” 

On Feb. 7, the session “Energy, Mobility, and Technology” will kick off the day to shed light on the technology and regulatory options needed to deliver these services while meeting the multi-dimensional challenges of resource use, emissions, cost and impact on the urban environment. 

The sessions will move on to explore the opportunities and challenges arising in the industry with two sessions “Energy Efficiency and Industrial Competitiveness” and “Challenges and Opportunities for the Power Sector.” 

Day five will begin with renowned economists in the panel titled “Economy and Energy Diversification in MENA.” 

The closing session will be hosted by Al-Moneef, Glachant, Fahad Al-Turki, VP of knowledge and analysis at KAPSARC, Gurkan Kumbaroglu, professor of industrial engineering at Bogazici University, Christophe Bonnery, president at the French Association for Energy Economics, followed by closing remarks from Alajlan. 

Day six will be a technical tour of the Shaybah Oil Production Facility in Rub Al-Khali, the largest extended desert in the world. 

The tour will include visits to Saudi Aramco’s Shaybah facility as well as the 637 sq. km Shaybah Wildlife Sanctuary, an Aramco-sponsored biodiversity protection area that is home to native plant and animal species. 

The event will also discuss COVID-19’s impact on energy and energy poverty and sustainable development goals in addition to shedding light on academic research and case studies. 

The 43rd IAEE Conference was held in mid-2022 in Tokyo, Japan, titled “Mapping the Energy Future — Voyage in Uncharted Territory” which discussed the impact of new geopolitical conditions and technological progress in energy markets. 

Key takeaways from last year’s event were the increase in investments in innovative solutions which was estimated to reach $209 billion by 2030, according to Fumihiko Ito, chief sustainability officer at Sumitomo Mitsui Banking Corp., and the role of global collaboration to ensure a smoother energy transition. 

Other important discussions were around the technologies that tackle carbon emissions as well as risk assessment and intervention planning.


European Commission drafts plan to allow e-fuel combustion engine cars

European Commission drafts plan to allow e-fuel combustion engine cars
Updated 21 March 2023

European Commission drafts plan to allow e-fuel combustion engine cars

European Commission drafts plan to allow e-fuel combustion engine cars

BERLIN/BRUSSELS: The European Commission has drafted a plan allowing sales of new cars with internal combustion engines that run only on climate neutral e-fuels, in an attempt to resolve a spat with Germany over the EU’s phasing out of combustion engine cars from 2035.

The draft proposal, seen by Reuters on Tuesday, suggests creating a new type of vehicle category in the EU for cars that can only run on carbon neutral fuels.

Such vehicles would have to use technology that would prevent them from driving if other fuels are used, the draft said. This would include a “fueling inducement system” to stop the car from starting if it was fueled by non-carbon neutral fuels, it said.

The proposal could offer a route for car manufacturers to keep selling combustion engine vehicles after 2035, the date when a planned EU law is set to ban the sale of new CO2-emitting cars.

After months of negotiations, EU countries and the European Parliament agreed the law last year. But Germany’s Transport Ministry surprised other countries this month by lodging last-minute objections to the law, days before a final vote that would have seen it enter into force.

The ministry’s core demand is that the EU allow sales of new cars running on e-fuels after 2035. The ministry was not immediately available for comment.

On Monday, it said talks with the commission about the planned end of new combustion engines from 2035 were moving forward, but added it could not say when an agreement would be reached.


Russia to extend oil production cuts until end of June

Russia to extend oil production cuts until end of June
Updated 21 March 2023

Russia to extend oil production cuts until end of June

Russia to extend oil production cuts until end of June

MOSCOW: Russia announced on Tuesday that it was extending oil production cuts of 500,000 barrels per day until the end of June, a response to Western anctions that was due to expire at the end of March.

“In accordance with the current market situation, the decision to voluntarily reduce production by 500,000 barrels per day will be applicable until June 2023 inclusive,” deputy prime minister in charge of energy issues Alexander Novak was cited as saying by Russian news agencies.

Novak announced the oil production cuts, which amount to about 5 percent of daily output, in February after Western countries announced new sanctions on Russian oil products.

“At the moment, Russia is close to achieving the target level of reduction — it will be reached in the coming days,” Novak added.

The West has imposed a slew of sanctions against Russia since the Kremlin deployed Russian troops to Ukraine, including targeting Moscow’s energy sector.

The International Energy Agency said this month that Russia’s oil-export revenue sank by almost half in February compared to last year.


Moody’s affirms UAE’s Aa2 rating, maintains stable outlook

Moody’s affirms UAE’s Aa2 rating, maintains stable outlook
Updated 21 March 2023

Moody’s affirms UAE’s Aa2 rating, maintains stable outlook

Moody’s affirms UAE’s Aa2 rating, maintains stable outlook

RIYADH: International credit rating agency Moody’s on Tuesday affirmed the Aa2 long-term local and foreign currency issuer ratings of the UAE’s government with the outlook predicted to remain stable.

Moody’s Investors Service also affirmed the foreign currency senior unsecured debt and program ratings at Aa2 and (P) Aa2, respectively.

As per the report, the UAE federal government’s debt level are likely to remain very low, “supported by its adherence to balanced budget targets and limited spending needs due to the scale of fiscal decentralization within the country.”

Despite being exposed to “longer-term carbon transition risks” and “regional geopolitical tensions,” the rating agency said solid institutions and policymaking helped contain these challenges.

The stable outlook reflects Moody’s expectation that continued efforts by the governments across the UAE to expand non-hydrocarbon revenue, promote the development of non-hydrocarbon sectors and attract foreign businesses and talent may reduce the federal government’s indirect exposure to oil price cycles and a potential acceleration in global carbon transition over the medium term, further strengthening its credit profile.

However, uncertain global geopolitical developments and downside risks to global growth may slow the diversification momentum, while tangible impact of the government's initiatives and policies are likely to take time to materialize, the report added.

The UAE’s local and foreign currency country ceilings remain unchanged at Aaa.


SEVEN and Hasbro join to develop Play-Doh themed centers in Saudi Arabia 

SEVEN and Hasbro join to develop Play-Doh themed centers in Saudi Arabia 
Updated 21 March 2023

SEVEN and Hasbro join to develop Play-Doh themed centers in Saudi Arabia 

SEVEN and Hasbro join to develop Play-Doh themed centers in Saudi Arabia 

RIYADH: Play-Doh themed play centers are on their way to the Kingdom after Saudi Entertainment Ventures reached a deal with Hasbro Inc.

The Saudi group, known as SEVEN, has announced that within the next decade the Play-Doh centers will be in its entertainment destinations in eight locations in the Kingdom.  

The centers will feature multi-level playscapes, creativity stations and sensory discovery activity spaces, as well as a café spot for parents to pass their time, stated the official release.    

“Our Play-Doh themed entertainment centers will inspire the creative minds and imaginations of children across the Kingdom. Children will be able to learn while having fun at our Play-Doh centers located at SEVEN entertainment destinations,” stated the SEVEN’s chairman Abdullah AlDawood.  

SEVEN’s CEO Essam Al Jubair and Hasbro MENA’s Commercial Director Devrim Anadol signed the contract to officiate the partnership.  

SEVEN - owned by the Public Investment Fund – joined with Thinkwell Group, a global strategy, experience design, and production agency, to foster the Play-Doh themed centers. 

By investing over SR50 billion ($13.3 billion) into 21 entertainment destinations, SEVEN is cultivating the Kingdom’s entertainment sector through innovative topnotch entertainment experiences and international collaboration.  

The 65-year Play-Doh brand is currently the number one reusable modeling compound across 80 different countries worldwide.  

“Play-Doh has always been synonymous with imagination; it provides kids the creative freedom to express themselves and brings families together for an engaging and fun activity that is beloved across generations,” added the press release announcing the development.


Closing bell: TASI rises 141.6 points on recovering oil prices

Closing bell: TASI rises 141.6 points on recovering oil prices
Updated 21 March 2023

Closing bell: TASI rises 141.6 points on recovering oil prices

Closing bell: TASI rises 141.6 points on recovering oil prices

RIYADH: Saudi Arabia’s Tadawul All Share Index increased 141.62 points on Tuesday – or 1.39 percent – to close at 10,359.74, from 10,218.12, thanks to oil price rise, extending a recovery.

MSCI Tadawul 30 Index also increased 1.64 percent to 1,410.74, and the parallel market, Nomu, edged down by 0.21 percent closing at 18,928.89.  

TASI’s total trading turnover of the benchmark index was SR4.9 billion ($1.3 billion) as 176 stocks of the listed 224 advanced and 38 receded.    

Arab Sea Information System Co. was the top gainer of the day, closing the trading session up 6.40 percent at SR70.70.

The second-best performer was Thimar Development Holding Co., increasing 9.92 percent to SR48.75 flat.  

Perfect Presentation for Commercial Services Co. was the third-best performer, rising 7.67 percent - or 31 points – to SR435, compared to its opening at SR404. It also announced a tremendous increase in net profit by 63.06 percent to SR131.4 million. The company’s shares closed 9.71 up at SR192.

Other top performers of the day were Saudi Industrial Export and Saudi Advanced Industries Co.

The biggest faller of the day was Yamama Cement Co., slipping by 3.19 percent to SR30.3.  

Elm Co. is the next worst performer of the day, after being the third top performer the day before, decreasing by 2.07 percent to SR426.

The third poor performer was Almarai Co., which drops by 2.01 percent, closing at SR53.6.

The other poor performers were Al-Rajhi Company for Cooperative Insurance and Al Jouf Cement Co.

Riyadh Cement Co, announced its annual financial results for 2022, posting an 11.18 percent decrease in its net profit to SR189.8 million compared to the same period at SR213.7 million in 2021. The company’s share price on the other hand,

Riyadh Cement said in a statement that the decrease in net profit is driven by a decrease in sales, despite the decrease in the general and administrative expenses and zakat expenses.

Alkhorayef Water and Power Technologies Co reported a net profit of SR107.4 million in 2022, up 4 percent from SR103 million in 2021, closing at SR131.8 per share

Saudi Company for Hardware incurred a ­­major loss in net profit by 400.1 percent to SR142.5 million. The drop was mainly due to a drop in sales by 11.7 percent in 2022, increasing inventory provision by SR38.5 million and booking impairment loss on non-financial assets by SR29.7 million. The company’s share price dropped by 1.25 percent to close at SR27.65 per share. 

Alinma Tokio Marine Co. announced its annual financial results for 2022, posting a total comprehensive profit for the current year of SR8.6 million, up from a loss of SR14.8 million. Alinma’s share price closed at SR14.62, up 0.97 percent.

Al Alamiya for Cooperative Insurance Co. reported a net comprehensive loss for the current year of SR52.8 million compared to SR36.8 million in the previous year, which is an increase of 43.32 percent. Al Alamiya’s share price edged up 0.17 percent to close at SR12.02.

Middle East Paper Co. on the other hand, posted a 22.58 percent increase in net profit to SR270.7 million in 2022 compared to SR220.5 million in the previous year. The increase in net profit was attributed to growth in revenues by 12 percent to SR130 million. The share price also increased by 0.98 percent closing at SR30.75

National Gas and Industrialization Co. also announced its annual financial results for 2022 posting a 6.3 percent increase in net profit to SR214.1 million. Yet, the company’s share price decreased by 0.53 percent to close at SR56.

Jahez International Company for Information System Technology reported a major decrease in net profit of SR58.9 million, down 49.62 percent compared to 2021. Jahez attributed the decrease to an increase in the segment net profit by 56 percent to SR180.4 million from SR115.9 million and an increase in Zakat expenses. However, the share price increased by 0.15 percent to close at SR664 per share.

Furthermore, Banan Real Estate Co. announces positive annual financial results for 2022, reporting a 52.39 percent rise in net profit to SR37.4 million from SR24.3 million in 2021. However, its share price slightly decreased by 1.40 percent closing at SR56.5.

The company said in a statement that the increase is due to a rise in rental revenues, driven by the acquisition of a hotel apartment building in the Sulaymaniyah district and the Plaza 46 building in the Qurtoba district.

Aldawaa Medical Service Co. also posted a notable increase of 27.73 percent in net profit of 2022 to SR305.4 million compared to SR227.7 million in the previous year. The medical services company’s share price increased by 1.51 percent, closing at SR74.1.

“The reason is mainly due to the increase in sales and the rationing of expenses with resulted in improving the gross profit and operating profit,” Aldawaa said in a bourse filing.

The Medical services company, Mouwasat, also reported a 3.63 percent increase in net profit in 2022 at SR599 million, due to an increase in the number of visits in the outpatient sector and the increase in occupancy rates in the internal departments. The share price increased 2.35 percent, closing at SR200.

On the other hand, Arriyadh Development Co. achieved a net profit of SR300.4 million during the current period, indicating an almost 6 percent drop. This is mainly due to a 16 percent decrease in Tanal’s revenues, which is an associate company.