Saudi Arabia eyes more collaboration with Central Asian countries: investment minister

Saudi Arabia eyes more collaboration with Central Asian countries: investment minister
Investment Minister Khalid Al-Falih underlined that the Kingdom’s relations with the Central Asian countries have been deep because of the religious bond that has tied the Muslims in the region for the past 14 centuries. (Reuters)
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Updated 19 July 2023
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Saudi Arabia eyes more collaboration with Central Asian countries: investment minister

Saudi Arabia eyes more collaboration with Central Asian countries: investment minister

RIYADH: Saudi Arabia has maintained deep ties with Central Asian countries and hopes to strengthen them in the future, said a top government official. 

According to the Saudi Press Agency, Investment Minister Khalid Al-Falih said the reason the Kingdom hosted the first-ever summit of the Gulf Cooperation Council and the five Central Asian countries, or GCC-C5 Summit, in Jeddah was to confirm the position it enjoys in the region. 

The five Central Asian countries participating in the event include Uzbekistan, Turkmenistan, Kazakhstan, Tajikistan and Kyrgyzstan. 

The minister stressed that the Kingdom’s position is well-received at the regional, continental and global levels under the leadership of King Salman and Crown Prince Mohammed bin Salman. 

He expressed his optimism about the expected results of this summit, especially concerning the development and expansion of economic and investment relations between the participating countries. 

The minister highlighted that such a collaboration would enhance opportunities among these countries to develop trade relations. 

He underlined that the Kingdom’s relations with the Central Asian countries have been deep because of the religious bond that has tied the Muslims in the region for the past 14 centuries. 

Al-Falih also welcomed the strategic development plans laid out by the Central Asian countries, such as Kyrgyzstan’s National Development Strategy 2018-2040 and Kazakhstan’s Strategy 2050. 

They connected well with the vision statements of the GCC, led foremost by the Kingdom’s 2030 blueprint and followed by Oman’s Vision 2040 and Bahrain’s Economic Vision 2030. 

The investment minister stressed that visions and strategies, even if they are not similar in their details, their main goals are the same, especially in the economic and investment fields, adding that bilateral trade between the Kingdom and Central Asian countries has already begun. 

The minister cited various investments by the Kingdom in some Central Asian countries, such as those made by Saudi utility major ACWA Power, a prominent player in the region. 

He added that the Kingdom also invested in major infrastructure projects in Uzbekistan, Azerbaijan, and Kazakhstan. For instance, Dr. Sulaiman Al-Habib Medical Group had signed memorandums of understanding to invest in Uzbekistan’s health sector.  

Al-Falih also mentioned the Fawaz Al-Hokair Group had signed similar agreements to invest in the tourism sector of Kazakhstan. 

Air connectivity among the regions has also increased, with Saudi airlines such as flynas linking the Kingdom with some Central Asian countries. Al Rajhi International Group also has investment plans in the agricultural sector of Uzbekistan. 

Preparing for a multipolar world 

Meanwhile, Zaid Bin Ali Al-Fudhail, head of the cultural program at the Gulf Research Center, told Al-Ekhbariya TV the GCC countries’ strategic move towards Central Asia follows the openness era and globally collective partnerships the world is experiencing. 

He added that the unipolar conception to impose the West’s agenda that has dominated the world should be stopped. 

Al-Fudhail further said that “the idea related to climate” is a Western concept used to pressure others for their interests.   

“They claim that oil will no longer exist in the coming two decades. We are the only losers in this case. They have many oil reserves and even coal. Despite that, they desire to destabilize the region,” he said. 

Al-Fudhail added that GCC and Central Asian countries should know the plans of the West and withstand these attempts.   

“The collaborations and partnerships that were made between Saudi Arabia and Japan, Turkiye, Iran, China and Russia have paved the way for us to access Central Asia assertively,” he said, adding that the GCC-C5 group should not cease efforts toward having more collaborations with these neighbors. 

Planning minister meets with UN, EU officials 

Saudi Minister of Economy and Planning Faisal Al-Ibrahim met with UN Secretary-General Antonio Guterres on the sidelines of the High-Level Political Forum 2023 in New York, during which the two discussed common issues in the fields of sustainable development and more ways of cooperation between the Kingdom and the organization. 

The Saudi minister also met with Austrian Minister of EU Affairs Karoline Edtstadler at the event. 

Al-Ibrahim and Edstadler discussed bilateral relations between the countries and reviewed the latest developments in sustainable development. 

Deputy Minister of Economy and Planning Ammar Nagadi also attended the meetings. 


Experts laud Saudi private sector’s efforts in advancing sustainable development

Experts laud Saudi private sector’s efforts in advancing sustainable development
Updated 03 December 2023
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Experts laud Saudi private sector’s efforts in advancing sustainable development

Experts laud Saudi private sector’s efforts in advancing sustainable development

DUBAI: Experts on Sunday highlighted the positive role the private sector is playing in advancing sustainable development in Saudi Arabia.

The progressive picture emerged through a series of panel discussions held at the Saudi Pavilion on the fourth day of the 2023 UN Climate Change Conference, known as COP28, currently underway in Dubai.

The talks examined diverse subjects, including carbon removal, corporate sustainability, and domestic market mechanisms. Speakers from government organizations, companies, and international organizations, as well as think tanks and consultancies, provided insights into the current situation. The talks extended beyond carbon emission goals as agreed under the Paris Agreement, delving into conversations surrounding Vision 2030 as set out by Saudi Arabia’s Crown Prince Mohammed bin Salman. 

Private sector participation

As a core component of the Saudi Vision 2030 and a means by which to diversify the economy, Hajar Al-Gosair, sustainability head at Saudi Arabia’s Ministry of Economy and Planning, noted while speaking on a panel on corporate sustainability that environmental efforts within the Kingdom cannot be restricted to the public or governmental sector alone. 

Among the driving forces is a steering committee chaired by Saudi Minister of Economy and Planning Faisal Al-Ibrahim, with the participation of over 20 entities from private and governmental bodies, she outlined. 

Al-Gosair cited key players such as the Capital Market Authority, the Ministry of Energy, and the Ministry of Investment, as well as private sector members, such as food company Al-Marai and renewable energy firm Desert Technologies, for their efforts in driving change. 

At the panel, officials from Al-Marai and Desert Technologies outlined the actions taken by their respective companies to cut carbon emissions. 

Saudi Aramco recently announced the launch of a $1.5 billion venture capital fund to invest in technology that will accelerate the net-zero initiative. “This is one of the things that one of the leading companies is doing,” Al-Gosair said. 

Experts emphasize that the shift toward achieving net zero is not exclusive to large corporations, especially as the Saudi government is keen to promote the growth of small and medium enterprises. Therefore, adopting sustainable practices and the accessibility of green finance must extend to SMEs, aligning with the broader goal of promoting environmental responsibility across diverse business sectors.

“It has to come down from the very big projects into the middle of the market and the SME sector. As you would know, Saudi has a very strong ambition to build the SME sector as part of its economy. So, complementing that will be SMEs that are building technologies or involved in the ecosystem around ESG-compliant lending. So yes, it’s very important. We have quadrupled our commitments to the SME sector in the last 12 months, and much of that will be in ESG-compliant lending or ESG-compliant products, asset management products, or deposit products.” Tony Cripps, CEO of the Saudi British Bank, told Arab News.

When discussing sectors of the economy where green finance has been or could be applied in the future, Cripps expressed optimism for its impact on emerging technology and green transportation. 

“Building green buildings is obviously important and our new head office is gold standard. But I think in the technology space is where it becomes very interesting. If you look at electric vehicles, if you look at battery storage, these are areas that will transform the environment … You’ve got technology providers from around the world looking to establish businesses in Saudi Arabia and build regional manufacturing infrastructure or even global manufacturing infrastructure around electric vehicles, around batteries. The data storage industry is exploding. So these are just some of the sectors that are very exciting,” Cripps said.

In her speech, Al-Gosair said that in early 2024, the Kingdom intends to launch sustainable development reporting standards for companies, making Saudi Arabia the first of the G20 countries to have a reporting standard aligned with international best practices.

A comprehensive approach

By framing the climate conversation as a silo, we cannot achieve anything, outlined Princess Nouf Al-Saud, CEO of the King Khalid Foundation, during her participation at the Saudi Green Initiative talks. 

It must instead be acknowledged as a comprehensive issue with socioeconomic, health, and developmental ramifications and thus addressed in a comprehensive manner that intersects business, philanthropy, and government, she said.

The CEO underscored that businesses must be the driving force for change within societies, adding that companies must consequently take responsibility for the communities they benefit from.

She said: “We need governments to be contributing, businesses to be contributing properly and taking responsibility for their communities or the communities that they benefit or extract from.”

The CEO added: “Especially in this year, we’re seeing business and philanthropy at COP, so bringing the two pillars of society that are very important, along with the third that is government. It’s very important because it is business that elevates people out of one economic strata.” 

Princess Nouf underscored that by 2030, there will be 38 million green jobs. Thus, the transition into the new economic model rooted in sustainability requires the integration of the youth in order to “re-skill” the workforce.

As it stands, green jobs are “very much tied with the megaprojects,” the CEO said, noting companies such as NEOM and Red Sea Global, which have been at the forefront of sustainability initiatives within the Kingdom.

Carbon capture & removal

In another session held at the Saudi Pavilion on Sunday, experts discussed the latest developments in the field of carbon capture, removal, and storage, which is being touted as one of the ways to get to net zero and mitigate the global temperature rise.

The executive director of the Oxford Net Zero Initiative and CO2RE Research Hub, Steve Smith, launched the discussions with a detailed status report on this sector, which has begun to attract interest from companies and governments. He said that though carbon capture has started to hit some traction, it is still minimal.

“The main problem we have that’s causing climate change at the moment is that we are emitting carbon dioxide and other greenhouse gases into the atmosphere. We’re putting about 40 billion tons per year into the atmosphere and that’s causing the global warming that we’re experiencing. But we’re actually doing a little bit of carbon dioxide removal. That’s taking it back out through our activities. We’re taking about 2 billion tons of carbon dioxide per year out of the atmosphere and that’s mainly through planting trees in certain parts of the world.” Smith told Arab News.

As the technologies are still being tested and tried, Smith says that of the various regions, the Middle East and, notably, the GCC nations may have an edge due to numerous factors.

“There’s a lot of work to be done actually to work out where the best places might be. But we can look at some general factors that give us an indication that if we take the Middle East region, for example, we know that there could be very plentiful resources of renewables, low carbon energy, and that is going to be really important for processes that require energy, for instance, direct capture machines or maybe even kind of processing rock, which we can mineralize through capturing CO2.

"And we know that the Middle East region has plentiful geological resources to store carbon. Indeed, that carbon has actually been stalled for a million years in the forms of oil and gas. And so we know these geological formations on the ground are pretty good at storing things for millions of years. And as they are depleted, depleted with oil and gas, maybe we can actually fill them up with our waste CO2,” said Smith.


Saudi Arabia to invest $100m to boost its aviation sector 

Saudi Arabia to invest $100m to boost its aviation sector 
Updated 03 December 2023
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Saudi Arabia to invest $100m to boost its aviation sector 

Saudi Arabia to invest $100m to boost its aviation sector 

RIYADH: Saudi Arabia plans to invest $100 million to serve 356 million passengers to further boost its tourism efforts and aviation strategy in line with Vision 2030, according to the president of the Kingdom’s General Authority of Civil Aviation.

Abdulaziz Al-Duailej made this revelation at the 15th International Conference on Air Services Negotiations, organized by the International Civil Aviation Organization in Riyadh on Sunday. The event, hosted by GACA, will continue till Dec. 7.

Emphasizing the comprehensive nature of the strategy, Al-Duailej provided insight into the multifaceted approach. 

He said: “We aim at developing and upgrading all aviation sectors, including Saudi airlines, logistics services, cargo services, and other support services.”

This financial injection underscores Saudi Arabia’s dedication to becoming a prominent player in the global aviation arena. 

Al-Duailej articulated the strategic objectives: “We are building an integrated airline network with Riyadh and Jeddah as strategic and central hubs.”

He outlined plans to establish international connections with 250 destinations by 2030.

This forward-looking approach aims to position Saudi Arabia as a leader in the aviation industry, fostering global connectivity and economic growth.

The significance of this commitment was further underscored by the President of the International Civil Aviation Organization, Salvatore Sciacchitano, who commended Saudi Arabia’s dedication. 

Sciacchitano said: “I am proud to say that the strategic direction of the Kingdom of Saudi Arabia in this sector will help countries achieve development and success.”

Saudi Minister of Transport and Logistic Services Saleh Al-Jasser also emphasized the impact of the civil aviation strategy, designed not only to enhance transportation but to foster relationships, facilitate trade, and open doors to Arab tourism. 

Al-Jasser spoke of the conference as evidence of a collective commitment to global integration through aviation.

The $100 million investment announcement serves as a cornerstone in Saudi Arabia’s journey to become a global aviation leader, as outlined by leaders at the ICAN conference. 

The financial commitment and strategic initiatives reflect the Kingdom’s determination to shape the future of air travel and contribute to the international aviation landscape.


Plans afoot for new facility to produce low-carbon chemicals, says Saudi energy minister

Plans afoot for new facility to produce low-carbon chemicals, says Saudi energy minister
Updated 03 December 2023
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Plans afoot for new facility to produce low-carbon chemicals, says Saudi energy minister

Plans afoot for new facility to produce low-carbon chemicals, says Saudi energy minister

RIYADH: Stressing the key role of the petrochemical industry in the fight against climate change, the Saudi energy minister disclosed the Kingdom’s plan to build a carbon dioxide utilization hub to produce low-carbon chemicals.

Prince Abdulaziz bin Salman was speaking at the 17th Annual Gulf Petrochemicals and Chemicals Association Forum in the Qatari capital on Sunday. He said the petrochemical sector has a crucial role to play in the global campaign to reduce greenhouse gas emissions.

Prominent industry leaders attended the forum titled “Using chemistry to achieve impactful transformation” and advocated the use of sustainable practices in the oil and gas sector.

The Saudi minister affirmed the Kingdom’s commitment to preserving cultural heritage while embracing positive changes.

“We’re not going to change our beliefs, we would not change our pride, of our history, of our culture, but I’m sure what we are trying to do with all of our visions is to make sure that the generations to come will be proud as we are today proud of ourselves,” he said.

“We envision (that) the (carbon utilization) hub will maximize value for carbon dioxide and enable new green industry in the Kingdom’s clean energy economy,” Prince Abdulaziz added.

He also expressed pride in the Kingdom’s success in converting oil derived from plastic waste into certified circular polymers, marking a first in the Middle East and North Africa through collaboration between Saudi Aramco, SABIC, and Total Energies.

Prince Abdulaziz also revealed plans for a minimum of four projects to be launched in the upcoming years, specifically emphasizing liquid-to-chemical processes.

SABIC CEO Abdulrahman Al-Fageeh emphasized the journey of the forum, a testament to a vision combining entrepreneurial spirit with industry knowledge inherited across generations.

Al-Fageeh acknowledged geopolitical risks and uncertainties but urged resilience and the discovery of new avenues for growth, underscoring chemistry as a solution provider to global challenges.

Saad Sherida Al-Kaabi, CEO of Qatar Petroleum, stressed the need for a meaningful and realistic transition, urging a common understanding of achievable goals.

He highlighted three essential areas, which include greater investment in energy efficiency and low carbon innovation, political commitment through coordinated policies, and raising awareness about the crucial role the chemical industry plays in improving lives worldwide.

Al-Kaabi concluded with a call for collective action to challenge the status quo and contribute to a better tomorrow.

The GPCA represents the downstream hydrocarbon industry in the Arabian Gulf.

Established in 2006, the association voices the common interests of more than 250 member companies from the chemical and allied industries, accounting for over 95 percent of chemical output in the Arabian Gulf region.

The industry makes up the second-largest manufacturing sector in the region, producing over $108 billion worth of products a year.

The association supports the region’s petrochemical and chemical industry through advocacy, networking, and thought leadership initiatives that help member companies to connect, share and advance knowledge, contribute to international dialogue and become prime influencers in shaping the future of the global petrochemicals industry.


Saudi cybersecurity body releases toolkit to fortify digital infrastructure

Saudi cybersecurity body releases toolkit to fortify digital infrastructure
Updated 03 December 2023
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Saudi cybersecurity body releases toolkit to fortify digital infrastructure

Saudi cybersecurity body releases toolkit to fortify digital infrastructure

RIYADH: Saudi Arabia’s National Cybersecurity Authority has released its second package of cybersecurity tools in a strategic initiative to fortify the Kingdom’s digital infrastructure.

This comprehensive suite of tools is designed to enhance the efficiency and effectiveness of cybersecurity measures across various sectors, aligning with the Kingdom’s efforts to combat evolving threats and boost digital readiness.

The newly released toolkit includes a range of templates and procedures for developing robust cybersecurity policies and standards, according to a statement issued by the authority.

Available in both Arabic and English, it caters to a wide spectrum of entities in the government and private sectors.

This initiative reflects the authority’s commitment to establishing and governing cybersecurity policies, frameworks, standards, and guidelines in Saudi Arabia.

Developed through an extensive study of various policies and best practices in the cybersecurity domain, the toolkit encompasses critical topics such as malware protection, risk management, email and network security, web application protection, and data security.

It also covers security aspects of user and mobile devices, industrial control systems, social media, and virtual environments.

The authority emphasizes that these implements aim to ensure a safer cyber environment for all stakeholders in the Kingdom.

The availability of the toolkit on the authority’s website ensures easy access and widespread adoption.

As the national reference in cybersecurity holds significant importance, the authority’s primary objective is to protect the region’s vital interests, national security, and critical infrastructures.

Saudi Arabia’s cybersecurity reforms have been rapidly growing with the hosting of the Global Cybersecurity Forum last month in Riyadh.

Furthermore, the NCA announced its second cybersecurity accelerator program in October to boost entrepreneurship, investment, and innovation in the sector.

The program provided more than SR6.5 million ($1.7 million) to support expanding companies and over 500 hours of guidance and direction.

These initiatives coincide with the Kingdom’s position as one of the global leaders in cybersecurity.

In June, Saudi Arabia secured second place in the Global Cybersecurity Index in the World Competitiveness Yearbook for 2023 by the Swiss-based International Institute for Management Development.


Closing Bell: Saudi main index rises to close at 11,219

Closing Bell: Saudi main index rises to close at 11,219
Updated 03 December 2023
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Closing Bell: Saudi main index rises to close at 11,219

Closing Bell: Saudi main index rises to close at 11,219

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 41.54 points, or 0.37 percent, to close at 11,219.02.  

The total trading turnover of the benchmark index was SR4.13 billion ($1.10 billion) as 148 of the listed stocks advanced, while 71 retreated.   

On the other hand, the Kingdom’s parallel market Nomu slipped 391.54 points, or 1.55 percent, to close at 24,844.08. This comes as 29 of the listed stocks advanced, while as much as 25 retreated.  

Meanwhile, the MSCI Tadawul Index also rose 3.86 points, or 0.27 percent, to close at 1,445.89.  

The best-performing stock of the day was Middle East Healthcare Co. The company’s share price surged 9.95 percent to SR86.20.  

Other top performers included Naqi Water Co. as well as Fawaz Abdulaziz Alhokair Co., whose share prices soared by 6.34 percent and 6.03 percent, to stand at SR78.80 and SR17.24 respectively.  

In addition to this, other top performers included Arab Sea Information System Co. and Saudi Co. for Hardware.  

The worst performer was Development Works Food Co., whose share price dropped by 5.64 percent to SR130.40.  

Other poor performers were Al-Rajhi Co. for Cooperative Insurance as well as Naseej International Trading Co., whose share prices dropped by 5.26 percent and 3.03 percent to stand at SR162.00 and SR54.40, respectively.  

Moreover, other worst performers also included Saudi Automotive Services Co. and Arabian Cement Co.  

On the announcements front, the Saudi Exchange has announced the trading suspension on Dur Hospitality Co.’s shares starting Dec. 3 to commence delisting procedures of the company’s shares.  

According to a statement from Tadawul, this decision follows the firm’s announcement of the extraordinary general meeting’s approval of the offer submitted by Taiba Investments Co. to acquire shares of Dur Hospitality Co. from shareholders through a securities exchange offer.  

On another note, Methanol Chemicals Co. has announced the issuance of the Ministry of Energy’s approval to allocate the required feedstock for manufacturing methyl diethanolamine, choline chloride dimethyl disulfide, and n-methyl pyrrolidone. 

A bourse filing has disclosed that all the targeted products will be the first of their kind in the region. Furthermore, these innovative products are anticipated to find applications in critical and strategic industries in the Kingdom, including but not limited to oil and gas, pharmaceuticals, fertilizers, and construction materials, among others.  

Moreover, Taiba Investments Co. has announced the results of the extraordinary general assembly meeting which included the increase of the firm’s capital remotely utilizing contemporary technology using the Tadawulaty platform.  

Meanwhile, Abdulaziz and Mansour Ibrahim Al-Babtain Co. has announced the signing of an agreement with Nestle Saudi Arabia.   

According to a Tadawul statement, the agreement will come into force from the date of its signature and expire on Dec. 31. However, it will be automatically extended upon the expiry of the period.