Qatar’s first Green Guarantee issued for a solar project 

Qatar’s first Green Guarantee issued for a solar project 
The collaboration between Standard Chartered Bank, Qatar, and Siemens Energy creates an entirely new benchmark for sustainable finance in Qatar (Supplied)
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Updated 28 March 2023
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Qatar’s first Green Guarantee issued for a solar project 

Qatar’s first Green Guarantee issued for a solar project 

RIYADH: Standard Chartered Bank and Siemens Energy have issued Qatar’s first Green Guarantee – an initiative designed to increase sustainable and responsible banking practice in the country. 

The Green Guarantee was granted for a solar power project that is projected to play a significant role in the country’s national climate change action strategy and its goal of reducing its carbon footprint while enhancing its energy independence.

This Green instrument is intended to aid in the project’s completion and long-term sustainability. 

Green guarantees can serve as a powerful de-risking mechanism, accelerating the flow of private financing into climate mitigation and adaptation projects in developing nations. 

“The road to net zero requires partnership, innovation, as well as decarbonization. This is highlighted in the development of this innovative Green Guarantee as a trading instrument with Standard Chartered, which will support the development of an important solar power project in Qatar,” Daniela Schoeppner, vice president of Finance Hub Middle East at Siemens Energy said. 

The collaboration between Standard Chartered Bank, Qatar, and Siemens Energy creates an entirely new benchmark for sustainable finance in Qatar and serves as a model for companies and institutions interested in promoting responsible and sustainable finance practices. 

The announcement is the latest move by countries in the region to push ahead with sustainable investments.

In February, Saudi Arabia’s Ministry of Industry and Mineral Resources also signed a memorandum of understanding with Standard Chartered Bank to evaluate the requirements for sustainable investment in the mining sector in the Kingdom, in line with its Vision 2030 objectives. 

The MoU focuses on promoting knowledge transfer, technological enablement, job creation and executing the outcomes of the Future Minerals Forum. 

It will also encourage local and foreign businesses to discover investment potential in Saudi Arabia’s mining and mineral sectors. 

Saudi Arabia’s Public Investment Fund announced in February that it has raised $5.5 billion through its second green bond sale. This follows the PIF’s initial green bond issuance amounting to $3 billion in October 2022.  

The money will be used to fund sustainable investments by the sovereign wealth fund through its Green Finance Framework. 

The first offering was more than eight times oversubscribed, with a subscription request totaling $25.9 billion. 

The most recent bond issuance was more than six times oversubscribed, with books surpassing $33 billion, and it was offered in three tranches – $1.75 billion for 7 years, $2 billion for 12 years, and $1.75 billion for 30 years. 


Boeing to lead sustainability wave in Saudi aviation industry: top official

Boeing to lead sustainability wave in Saudi aviation industry: top official
Updated 28 September 2023
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Boeing to lead sustainability wave in Saudi aviation industry: top official

Boeing to lead sustainability wave in Saudi aviation industry: top official

JEDDAH: Boeing is working with Saudi airline companies to implement advanced aircraft and engine technologies that align with global sustainability goals, according to a senior executive of the US-based aerospace company. 

Speaking to Arab News, Randy Heisey, managing director of commercial marketing in Africa and the Middle East region at Boeing, said that the future of flying would incorporate the latest digital design, test and production tools, airframe, propulsion and systems technology, keeping in mind the global sustainability goals.   

He added that different power and energy solutions will apply across diverse market segments and aircraft sizes.    

“We continue to advance the safety and viability of other renewable energy sources and their use on the aircraft, including electric, hydrogen and other sources of energy which may come to fruition,” said Heisey.   

Highlighting some of the critical partnerships and collaborations Boeing has established with Saudi airline companies, he said that the airplane manufacturer enjoys a strong and long-standing relationship with the Kingdom, founded on a partnership back in 1945.   

“Since then, Boeing has developed and expanded relationships in the Saudi commercial and other aviation sectors. Our investments have helped strengthen and grow the local aerospace sector, creating jobs and driving innovation for mutual benefit,” he said. 

Heisey added that they have over 2,000 people employed in the Kingdom today by various Boeing entities and joint ventures in Saudi Arabia.  

Based in Riyadh, Boeing Saudi Arabia is primarily run by the Kingdom’s employees, including its leadership. The company supports all programs in the country, including Boeing Defense, Space & Security, Boeing Commercial Airplanes and Boeing Global Services.  

“To support the development of Saudi-led aerospace and defense capabilities in the Kingdom, we stand to partner with the Kingdom as it diversifies and grows the economy here,” said Heisey. 

As Saudi Arabia spreads its wings in the aviation sector, Boeing is working with established and emerging companies to drive the industry. 

Heisey pointed out that his company supports the growth and operations of its airline partners, focusing on their needs and how they can best succeed in their endeavors.   

“As was demonstrated earlier this year with the purchase that was consummated by both Saudia and the new exciting airline Riyadh Air to commit to up to 121 new 787 Dreamliner aircraft, which will deliver not only great efficiency and sustainable operations but an unparalleled passenger experience,” he said. 

Moreover, Saudi Arabia’s strategic location at the crossroads of major continents has significantly contributed to its status as a global aviation hub.  

The Kingdom’s well-developed aviation infrastructure, geographic position and substantial economic policies have fostered aviation connectivity, making it a crucial transit point for travelers and a center for air cargo transportation. 

The Saudi government has invested in expanding the capacity of airports in cities like Jeddah and Madinah to handle the increasing number of Umrah pilgrims, which includes the construction of new terminals and runways. 

 “That has been a part of helping the commercial aviation industry in the Kingdom grow and prosper, and the Vision 2030 initiatives will be the foundation, which will be accelerated going forward,” said Heisey.  

He added: “So, we see bright prospects given the geography and the emphasis put on the diversification of tourism in Saudi Arabia, which will only lead to more and more benefits for the airlines here.” 

While discussing the company’s upcoming projects, the Boeing executive said: “We’re participating actively in the fleet renewal with our leading technology products, and those will enable the Saudi airlines to effectively compete against others, not only in this region but globally.”    

Moreover, the aviation industry worldwide has been under increasing scrutiny due to its contribution to carbon emissions.  

Meeting environmental targets and regulations and developing more sustainable aviation technologies have emerged as significant challenges. 

Boeing is working closely with its partners to help Saudi airline companies to counter the problems. 

“Boeing has four key approaches we are taking to address this big challenge for the civil aviation industry,” said Heisey while explaining that the strategy’s first pillar is fleet renewal. 

The fleet renewal includes bringing in new generations of airplanes that provide efficiency and reduced emissions of anywhere between 15 percent and 40 percent over the generations preceding them. 

He added that the second pillar is improving operational efficiency, where fuel consumption and emissions reductions can net around a 10 percent benefit.   

“Of course, renewable energy is another major contributor. Sustainable aviation fuel is a major element of how the industry can make progress in this area, but it is not the only element,” reminded Heisey. 

He further said that SAF today could contribute to a reduction in emissions of 80 percent and, in the future, could go to a 100 percent reduction in emissions.  

“The fourth element is one that we are actively pursuing: research and development in advanced technologies,” said the executive.  

Boeing has been leading the aviation space by partnering with the Saudi industry in driving a new fleet, facilitating the flying machines to operate with SAF, and providing its knowledge about other fuels to the industry, including those who are involved in refining and developing new sources of sustainable or alternative fuels.   

It has been working closely with governments, regulatory bodies, airlines, airports, and industry stakeholders to take the Saudi aviation industry to new heights.  

It is also ushering in innovation and adopting sustainable practices to promote the long-term viability of the aviation sector. 


Islamic banks set to flourish in GCC: Moody’s

Islamic banks set to flourish in GCC: Moody’s
Updated 28 September 2023
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Islamic banks set to flourish in GCC: Moody’s

Islamic banks set to flourish in GCC: Moody’s

RIYADH: Against the backdrop of Gulf Cooperation Council countries’ economic diversification efforts, Islamic banks are poised to outperform their conventional counterparts in profit margins, as per a recent report by Moody’s Investors Service.

Fueled by stable oil prices and steadfast economic agendas, increased business activities within Islamic financial institutions over the next 12 to 18 months are anticipated in the GCC region.

In its latest report, the global credit rating agency forecast that the profitability margins of these Shariah-compliant banks will surpass those of traditional outfits in 2024, largely attributed to their inherent margin advantage.

As the regional economy expands, the asset quality of GCC Islamic banks is expected to remain robust.

Additionally, their strong capital and liquidity positions will better equip them to meet the growing regional demand for Islamic banking services, as outlined in the report.

The stable asset quality is set to be supported by the Islamic banks’ focus on household financing, which is expected to remain strong. Moreover, a large proportion of the banks’ activity is in the retail sector, which is likely to continue with a steady performance.

 “While Islamic banks focus mainly on the retail market, corporate financing remains a significant component of their credit exposure, including to the historically cyclical and confidence-sensitive construction, contracting and real estate sectors,” the report added.

The review stated that Saudi Arabia is set to maintain its dominant position in market penetration while highlighting significant growth potential in other regions.  

Elevated oil prices are rendering valuable ripple effects across the GCC region, resulting in consistent government spending, especially in the Kingdom.  

This will lead to a surge in confidence among businesses, consumers, and investors in non-oil sectors, such as in the UAE, where banks primarily lend, the report indicated.

Meanwhile, Moody’s predicts that inflation across GCC banking markets will remain relative to advanced economies, primarily driven by the substantial subsidies governments provide.

“As of March 2023, the market penetration of Islamic banks in Saudi Arabia, which is 83 percent, and Bahrain, 69 percent, were the highest in the region, while room for growth is more significant in the UAE, with a penetration rate of 28 percent, Qatar, 31 percent, and Oman, 19 percent,” the report stated.


Saudi Aramco acquires stake in MidOcean Energy amid efforts to enter the global LNG business

Saudi Aramco acquires stake in MidOcean Energy amid efforts to enter the global LNG business
Updated 28 September 2023
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Saudi Aramco acquires stake in MidOcean Energy amid efforts to enter the global LNG business

Saudi Aramco acquires stake in MidOcean Energy amid efforts to enter the global LNG business

RIYADH: Energy giant Saudi Aramco is on track to enter the global liquefied natural gas market thanks to a new agreement.

The leading intergraded energy and chemicals firm has agreed to acquire a strategic minority stake in MidOcean Energy for $500 million, according to a statement.

This move aligns well with the company's goal of becoming a prominent LNG player, according to Aramco Upstream President Nasir Al-Naimi.


UAE-Thailand economic agreement to strengthen bilateral trade, says envoy

UAE-Thailand economic agreement to strengthen bilateral trade, says envoy
Updated 28 September 2023
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UAE-Thailand economic agreement to strengthen bilateral trade, says envoy

UAE-Thailand economic agreement to strengthen bilateral trade, says envoy

RIYADH: Trade and economic relationships between the UAE and Thailand are poised for significant growth as both nations prepare to sign a Comprehensive Economic Partnership Agreement amid ongoing negotiations, according to a senior envoy. 

Sorayut Chasombat, ambassador of Thailand to the UAE, stated during a media briefing that the CEPA is expected to contribute $300 million to the country’s gross domestic product. 

“We want to be a strong partner of the UAE in this region. We recognize the UAE’s role in this part of the world in promoting peace, stability, and prosperity within the region,” said Chasombat during the briefing at the Royal Thai embassy.  

He added: “With the completion of CEPA, it will add at least $300 million to the Thai GDP. It will add at least $250 million to the bilateral trade between the two countries.”  

Negotiations for the free trade CEPA between Thailand and the UAE began in May, and the latest round of negotiations, currently taking place in Bangkok, is scheduled to conclude on Sept. 28. 

The UAE is Thailand’s sixth-largest trading partner globally and holds the first position in the Middle East. Bilateral trade between the two countries reached $11.1 billion in the first seven months of 2023. 

As of July 2023, Thailand exported goods worth $1.81 billion to the UAE, while imports from the Arab nation amounted to $9.3 billion. 

Chasombat also affirmed Thailand’s robust participation in COP28, given the country’s commitment to becoming carbon neutral by 2050 and achieving net-zero emissions by 2065. 

“Thailand is well known for sustainable development. We plan to have strong participation at the upcoming COP28, next year’s World Government Summit, and the World Trade Organization Ministerial Conference. We would give our utmost support to the UAE,” he noted.  

COP28, the UN Climate Change Conference, is scheduled to take place in Dubai from Nov. 30 to Dec. 12 this year. 

Highlighting tourism ties, Chasombat disclosed that the UAE is second only to Saudi Arabia in terms of the number of tourists visiting Thailand. 


QatarEnergy inks $3.9bn deal with Hyundai for 17 LNG carriers 

QatarEnergy inks $3.9bn deal with Hyundai for 17 LNG carriers 
Updated 28 September 2023
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QatarEnergy inks $3.9bn deal with Hyundai for 17 LNG carriers 

QatarEnergy inks $3.9bn deal with Hyundai for 17 LNG carriers 

RIYADH: QatarEnergy has signed a contract with South Korea’s Hyundai Heavy Industries to construct 17 new liquefied natural gas carriers, marking the beginning of the second phase of the energy firm’s maritime fleet expansion program. 

Valued at 14.2 billion Qatari riyals ($3.9 billion), this deal, according to Qatar News Agency, aims to support increased LNG production from the North Field Expansion and Golden Pass projects while addressing long-term fleet modernization needs. 

In addition to the 60 carriers contracted during the first phase of the program, which were constructed in Korean and Chinese shipyards, this agreement will raise the total number of new LNG carriers to be delivered to QatarEnergy and its subsidiaries to 77. 

Furthermore, there are plans for additional carriers in the future, as reported by QNA. 

The agreement was signed by Saad bin Sherida Al-Kaabi, the minister of state for energy affairs and the CEO of QatarEnergy, and Sam Hyun Ka, vice chairman at Korea Shipbuilding & Offshore Engineering Co. Ltd. 

Al-Kaabi stated that the agreement represents another milestone in the relationship with Hyundai Heavy Industries and the Korean shipbuilding industry.

He added: “Hyundai Heavy Industries will construct these 17 LNG carriers to the highest technical, environmental, and quality standards, ensuring optimal fuel efficiency and significant reductions in carbon emissions. This underscores our ongoing commitment to leadership in sustainability, innovation, and growth in the LNG industry.” 

Hyun Ka said: “We take pride in our partnership with Qatar and participation in one of the world's largest LNG projects. We have strong faith that this opportunity will enhance the long-term cooperation between our two companies and our nations.” 

QatarEnergy’s LNG carrier fleet expansion program plays a crucial role in meeting future shipping demands as the country expands its production capacity from the North Field.