Saudi Aramco’s drilling and workover facilities begin operations at SPARK 

Saudi Aramco’s drilling and workover facilities begin operations at SPARK 
SPARK is committed to supporting research and development programs that will contribute to the realization of the Kingdom’s Vision 2030. File.
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Updated 21 November 2023
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Saudi Aramco’s drilling and workover facilities begin operations at SPARK 

Saudi Aramco’s drilling and workover facilities begin operations at SPARK 

RIYADH: Saudi Arabian Oil Co., also known as Saudi Aramco, has commenced drilling and workover operations in the King Salman Energy Park to support the localization of oil and gas. 

In a press statement, the energy park, also known as SPARK, said that the facility, which spans an area of 370,000 sq. meters, will be home to more than 1,000 employees. 

SPARK further noted that establishing Aramco’s Drilling and Workover center in the park would help increase supply chain efficiencies and ease operations. 

“We are excited to witness the operational launch of Aramco’s D&WO headquarters and industrial facilities within SPARK,” said Saif Al-Qahtani, CEO of the energy park. 

He added: “This underscores our commitment to delivering world-class services to our investors across the MENA region and beyond. SPARK remains steadfast in its mission to be at the forefront of advancing the energy industry and reinforcing our position as a vital hub for localization of energy supply chain, innovation, and collaboration.” 

According to the press statement, the addition of Saudi Aramco’s D&WO center is expected to catalyze SPARK’s commitment to localize the energy value chain, aligned with the Kingdom’s localization goals outlined in Vision 2030. 

Earlier this month, Saudi Aramco began the production of unconventional tight gas from its South Ghawar operational area, two months ahead of its schedule. 

Unconventional tight gas, or shale gas, is typically found in reserves where hydrocarbons are tightly trapped within rock layers. Extracting this gas demands specialized techniques like horizontal drilling and hydraulic fracturing.

The commissioned facilities at South Ghawar currently have a processing capacity of 300 million standard cubic feet per day for raw gas and 38,000 barrels per day for condensate.

On Nov. 19, Energy Minister, Prince Abdulaziz bin Salman, announced that Saudi Aramco had discovered two new gas fields in the Eastern Province and the Empty Quarter, respectively.

The discovery of natural gas reservoirs is expected to complement Aramco’s strategic plan to increase gas production by over 50 percent from 2021 levels to meet domestic demand by 2030.


Saudi capital Riyadh to host World Expo 2030

Saudi capital Riyadh to host World Expo 2030
Updated 9 sec ago
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Saudi capital Riyadh to host World Expo 2030

Saudi capital Riyadh to host World Expo 2030

PARIS: Riyadh will host the World Expo 2030 after defeating challenges from South Korea and Italy for the prestigious event.

The Saudi capital was picked by a majority of 119 out of 165 votes by the member states of the Paris-based Bureau International des Expositions.

The secret ballot was carried out using electronic voting, and Riyadh was confirmed as successor host to Osaka in 2025.

During the BIE event in the French capital, candidates presented their final Expo progress reports to member states and government-appointed delegates in an 11th-hour attempt to win votes.

The event is expected to represent the culmination of Vision 2030, and showcase the Kingdom’s achievements, with a particular focus on hospitality, tourism, culture.

Saudi Crown Prince Mohammed bin Salman used a visit to Paris in June to showcase the Kingdom’s bid for the Expo, attending an exhibition held by the Royal Commission for the City of Riyadh that showcased Saudi Arabia’s rich heritage and cultural depth.

The bid began to draw support from high-profile French backers, with influential French senator Natalie Goulet saying that holding the expo in the Saudi capital would be “the culmination of Vision 2030.”

Arab News backed the Expo bid through a #WhyRiyadh campaign launched on Sept. 23 – the Saudi National Day.

Public figures from across various industries backed the campaign, including Saudi Minister of State for Foreign Affairs Adel Al-Jubair, Riyadh Mayor Prince Faisal bin Abdulaziz bin Ayyaf, and Frédéric Bedin, president of public relations agency Hopscotch.

Other high-profile supporters included the secretary-general of Alwaleed Philanthropy and UN Human Settlements Program’s Goodwill Ambassador, Princess Lamia bint Majed, the vice president of the Saudi Arabia Boxing Federation Rasha Al-Khamism, and Rob Sobhani, adjunct professor at Georgetown University.

Nonetheless, the campaign had started earlier, with the announcement of Paris’s support of Riyadh Expo 2030, reiterated during the crown prince’s visit to the French capital in June 2023, and his participation in the first Summit for Financial pact.


Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF
Updated 28 November 2023
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Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

Key sectors need $13.5tn investment by 2050 to become carbon-neutral: WEF

RIYADH: A total investment of $13.5 trillion is needed to ensure a carbon-neutral future by 2050, particularly in the production, energy and transport sectors, according to the World Economic Forum. 

In its report titled “Net-Zero Industry Tracker 2023,” WEF said that decarbonizing the industrial and transport sector is crucial to achieving a greener future, as these industries emit 40 percent of global greenhouse emissions. 

Roberto Bocca, the head of the Center for Energy and Materials at the WEF, said considerable investments are needed in the industrial and transport sector to achieve net-zero targets within the stipulated timeline. 

“Significant infrastructure investments are required, complemented by policies and stronger incentives so industries can switch to low-emission technologies while ensuring access to affordable and reliable resources critical for economic growth,” said Bocca. 

According to the report published in collaboration with Accenture, the $13.5 trillion in investments is derived from average clean power generation costs of solar, off-shore and on-shore wind, and nuclear and geothermal.

It also accounts for electrolyzer costs for clean hydrogen and carbon transport, as well as storage costs.

The report comes in the same week the 2023 UN’s Climate Change Conference is set to begin, which calls for “dramatic climate action” to close an “emissions canyon.” 

In addition to increasing capital expenditures to decarbonize existing industrial and transport asset bases, further investment is needed to build a clean-energy infrastructure, WEF added in the report. 

“It is imperative that action is taken soon to both decarbonize and improve energy efficiency; otherwise, unabated fossil-fuel demand in the key industry sectors, which have grown 8 percent on average the past three years, will increase very significantly by 2050,” added Bocca. 

Bocca highlighted that global collaboration among industrial leaders, embracing the usage of fuels like hydrogen, and implementing carbon capture, utilization and storage systems will help combat the issues surrounding emissions. 

The report added that carbon pricing, tax subsidies, public procurement and the development of strong business cases can support mobilizing necessary investments in the industrial and transport sectors. 

WEF and Accenture also stressed the need for public-private partnerships to ensure a sustainable future. 

“Collaboration between the public and private sectors is critical to a successful energy transition, and technology can be a key enabler in both managing affordable and reliable access to clean energy and addressing the incremental cost of decarbonization,” said Muqsit Ashraf, who leads Accenture Strategy.

He added: “Additionally, business model innovations can also help stimulate demand and accelerate industrial decarbonization – achieving net-zero objectives and a resilient energy transition.” 


CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 
Updated 28 November 2023
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CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

CBUAE and People’s Bank of China renew currency swap agreement, sign MoU 

RIYADH: The UAE and China have entered into a renewed currency swap arrangement facilitated by agreements that aim to advance technical and technological cooperation between the two nations. 

The understanding, which will renew the currency swap between the Central Bank of the UAE and the People’s Bank of China, bears a nominal value of 18 billion dirhams ($4.9 billion) over the next five years. This deal aims to enable the provision of liquidity in local currency into the financial markets. 

This agreement is expected to enhance the efficiency and effectiveness of settling financial and trade transactions between the two nations. 

Both banks also signed a memorandum of understanding to enhance collaboration with central bank digital currency development and strengthen cooperation between CBUAE and the Digital Currency Institute of the People’s Bank of China in the field of financial technology. 

The MoU will allow information to be shared on best practices and regulations pertaining to digital currencies and will support the implementation of cooperative undertakings, such as Project mBridge, a multi-central bank digital currency platform that facilitates quick and secure cross-border trade payments.

“The renewal of the currency swap agreement between our two countries and the MoU with our partners in China reflect the depth of the relationship between the UAE and China, embodying the Central Bank’s commitment to solidifying the partnership with our Chinese counterpart in financial, trade and investment fields,” Khaled Mohamed Balama, governor of CBUAE said. 

Additionally, the MoU includes cooperation in training and skills development for specialists on both sides and the exchange of bilateral visits to discuss matters of common interest. 

Last week, the Dubai Financial Market, in collaboration with Nasdaq Dubai and the Shanghai Stock Exchange, signed an MoU to advance joint products, including indices and electronic fund transfer initiatives. 

This step marks a significant development in fostering financial collaboration between exchanges. 


Saudi economy to rebound in 2024: Riyadh Capital

Saudi economy to rebound in 2024: Riyadh Capital
Updated 28 November 2023
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Saudi economy to rebound in 2024: Riyadh Capital

Saudi economy to rebound in 2024: Riyadh Capital

RIYADH: Saudi Arabia’s economy is expected to “rebound” in 2024, according to an analysis by Riyadh Capital.

The bank’s “Saudi Economic Chartbook” for the fourth quarter of 2023 outlines a projected continuation of solid growth for non-oil activities, facilitated by a progress-driven financial policy emphasizing an increase in investment spending, leading to the foreseen advancement in 2024.

For 2023, the document estimates non-oil activities to grow by 5.1 percent while projecting a 4.9 percent boost for 2024.

The bank notes that the Kingdom’s economy is expected to consolidate in 2023 due to oil production cuts in the last 12 months.

The decline in crude output in 2023 is expected to gradually reverse over the course of next year, leading the body to forecast an oil sector GDP contribution of 3.6 percent in 2024.

For 2023, the fiscal deficit is estimated at SR82 billion ($21.9 billion), corresponding to 2.1 percent of GDP.

Meanwhile, the 2024 deficit is projected to narrow to SR43 billion or 1.1 percent of GDP, primarily due to gradually higher oil and non-oil revenues.


Closing Bell: Saudi main index inches up to close at 11,101

Closing Bell: Saudi main index inches up to close at 11,101
Updated 28 November 2023
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Closing Bell: Saudi main index inches up to close at 11,101

Closing Bell: Saudi main index inches up to close at 11,101

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 20.18 points or 0.18 percent to close at 11,100.92.

The total trading turnover of the benchmark index was SR4.87 billion ($1.30 billion) as 108 of the listed stocks advanced, while 103 declined.

Saudi Arabia’s parallel market Nomu also performed well on Tuesday, with the index gaining 371.89 points or 1.53 percent, closing at 24,631.21.

The MSCI Tadawul Index too edged up 0.36 percent to close at 1,430.79.

The best-performing stock of the day was Wafrah for Industry and Development Co. The company’s share price soared by 5.36 percent to SR41.30.

Other top performers were Dr. Sulaiman Al-Habib Medical Services Group and Yamama Cement Co., whose share prices surged by 3.73 percent and 3.53 percent, respectively.

The worst performer in the main index was Alamar Foods Co., as its share price dipped by 3.90 percent to SR113.20.

The positive performance of Nomu was driven by Fad International Co., which debuted on the market today. The company’s share price surged by 30 percent to SR109.20.

In the parallel market, Future Care Trading Co.’s share price edged up by 10.10 percent to SR25.50.

On the announcements front, the Saudi exchange said that Armah Sports Co. will be listed and start trading on Nomu on Nov. 30.

Al-Moammar Information Systems Co., also known as MIS, revealed that it was awarded a contract worth SR81.6 million by the Kingdom’s Ministry of Justice to offer technical support.

In a Tadawul statement, MIS said that there were no related parties involved in the deal.

Meanwhile, Knowledge Tower Trading Co. announced that it purchased land that spans 1,148 sq. meters in Riyadh’s Malaz neighborhood at a value of SR6.3 million.

In a statement to Tadawul, the company said that the purchase would be financed through company sources and added that the land would be developed as an income-generating investment.