World leaders address climate change achievements and challenges at COP28 

World leaders address climate change achievements and challenges at COP28 
World leaders have spoken of the urgent need for collective action to combat climate change on the second day of the UN Climate Change Conference in Dubai. AN Photo
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Updated 01 December 2023
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World leaders address climate change achievements and challenges at COP28 

World leaders address climate change achievements and challenges at COP28 

DUBAI: World leaders have spoken of the urgent need for collective action to combat climate change on the second day of the UN Climate Change Conference in Dubai. 

The UAE’s Vice President Mansour bin Zayed Al-Nahyan showcased the nation’s leadership, pledging carbon neutrality by 2050 and a substantial investment in renewables. 

He said: “We were the first to pledge to achieve carbon neutrality by 2050. We have allocated $163 billion for expansion of renewables and to transition towards renewable energies.” 

Some leaders used their speeches to broaden the focus beyond environmental matters, with Egyptian President Abdel Fattah Al-Sisi warning that political challenges occurring alongside the climate change debate are just as serious. 

Representatives from Brazil and the EU used their addresses to reinforce commitments to emission reduction, with President Lula da Silva pledging significant reductions by 2030 and European Commission President Ursula von der Leyen calling for concrete actions at COP28. 

Leaders from Kenya, Zimbabwe, Tonga, Guinea-Bissau, as well as Congo, and Mauritania, emphasized the global nature of the climate battle and the need for increased financial support to developing nations.  

The call for solidarity resonated as leaders acknowledged the ongoing challenge and the imperative to elevate environmental transformation financing. 


Oil climbs on prospects of wider Middle East war, ample supply caps gains

Oil climbs on prospects of wider Middle East war, ample supply caps gains
Updated 13 sec ago
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Oil climbs on prospects of wider Middle East war, ample supply caps gains

Oil climbs on prospects of wider Middle East war, ample supply caps gains

SINGAPORE: Oil prices rose on Thursday as the prospect of a widening Middle East conflict that could disrupt crude oil flows from the key exporting region overshadowed a stronger global supply outlook.

Brent crude futures were up 94 cents, or 1.27 percent, to $74.84 a barrel at 9:15 a.m. Saudi time. US West Texas Intermediate crude futures were up 99 cents, or 1.41 percent, to $71.09.

Both benchmarks had jumped over $1 earlier in the session.

“Following the initial jitters from geopolitical risks in the Middle East, we have seen some calm return to global markets, but of course, with market participants still keeping a side-eye on any upcoming Israeli response,” said Yeap Jun Rong, a market strategist at IG.

“The question for oil now is whether Iran’s energy infrastructure will be in Israel’s crosshairs,” said Yeap.

Israel bombed central Beirut early on Thursday, killing at least six people, after its forces suffered their deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

The strike comes a day after Iran fired more than 180 ballistic missiles at Israel in an escalation of hostilities, which have seeped out of Israel and occupied Palestinian territories into Lebanon and Syria.

“From here, it’s a waiting game to see what the Israeli response will be and I suspect that comes after the conclusion of the Rosh Hashanah holiday tomorrow,” said IG market analyst Tony Sycamore.

“I doubt that Israel will target Iranian oil infrastructure, as such a move would likely drive oil prices toward $80, which would be frowned upon by Israel’s allies, who are making strides against inflation,” Sycamore said.

Meanwhile, US crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended Sept. 27, the Energy Information Administration said, compared with expectations in a Reuters poll for a 1.3 million-barrel draw.

“Swelling US inventories added evidence that the market is well supplied and can withstand any disruptions,” ANZ analysts said in a note.

Some investors remained unfazed as global crude supplies have yet to be disrupted by unrest in the key producing region, and spare OPEC capacity tempered worries.

“After Iran’s attack, prices may stay elevated or remain more volatile for a little longer, but there’s enough production, there’s enough supply in the world,” Jim Simpson, chief executive officer of East Daley Analytics, told Reuters.

OPEC has enough spare oil capacity to compensate for a full loss of Iranian supply if Israel knocks out that country’s facilities.

However, traders worry the producer group would struggle if Iran retaliates by hitting installations of its Gulf neighbors.

“The effectively available spare capacity might be much lower if renewed attacks on energy infrastructure on countries in the region happen,” said Giovanni Staunovo, a UBS analyst.


Aramco raises $3bn in oversubscribed dollar-denominated sukuk offering

Aramco raises $3bn in oversubscribed dollar-denominated sukuk offering
Updated 28 min 36 sec ago
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Aramco raises $3bn in oversubscribed dollar-denominated sukuk offering

Aramco raises $3bn in oversubscribed dollar-denominated sukuk offering

RIYADH: Saudi energy giant Aramco has completed a $3 billion international sukuk issuance, with demand exceeding expectations and reaching six times oversubscription, the company announced. 

The issuance, consisting of two US dollar-denominated tranches, includes a $1.5 billion tranche maturing in 2029 with a 4.25 percent profit rate and another $1.5 billion tranche maturing in 2034 at a 4.75 percent profit rate, according to a press release.  

Both tranches, priced on Sept. 25 at a negative new issue premium, are listed on the London Stock Exchange, reflecting Aramco’s strong credit strength. 

The issuance is part of Aramco’s efforts to diversify funding, expand its investor base, and re-establish its sukuk yield curve. It follows the company’s return to global debt markets in July, its first since 2021. 

Ziad T. Al-Murshed, Aramco executive vice president and chief financial officer, said: “Building on the strong investor reception from our July 2024 bond issuance, this sukuk offering represented an opportunity to engage with a broader investor base.”  

He added: “The impressive demand, as demonstrated by the oversubscribed sukuk order book, reflects Aramco’s unique credit proposition, underpinned by its competitive advantage and a proven track record of financial resilience through cycles.” 

In July, Aramco raised $6 billion from a three-tranche sukuk as part of its Global Medium Term Note Program. The latest issuance continues the company’s strategy to strengthen its presence in international financial markets. 

The state-owned firm’s integrated expansion strategy is driving the Kingdom’s Vision 2030 economic diversification plan while addressing sustainability concerns, experts told Arab News earlier this year. 

At the center of Saudi Arabia’s energy transformation, the energy giant is focused on creating new market opportunities and increasing integration across multiple sectors. 

Economists told Arab News that Aramco is not only focused on boosting Saudi Arabia’s economic performance but is also driving technological innovation to meet ambitious environmental targets. 

The company’s strategic roadmap includes expanding into new markets, particularly in Asia and North America, while using its venture capital arm to foster disruptive technologies.  

Aramco CEO Amin Nasser said earlier that the company is “looking at the current market status which, even though challenging, presents an excellent opportunity for growth.” This forward-thinking approach supports the company's strategic vision to solidify its position as a leader in the global energy landscape. 


Saudi Arabia’s non-oil business growth continues as PMI rises to 56.3 

Saudi Arabia’s non-oil business growth continues as PMI rises to 56.3 
Updated 55 min 11 sec ago
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Saudi Arabia’s non-oil business growth continues as PMI rises to 56.3 

Saudi Arabia’s non-oil business growth continues as PMI rises to 56.3 

RIYADH: Saudi Arabia’s non-oil private sector business conditions strengthened in September, driven by improved sales momentum and rising new orders, according to an economic tracker. 

The Riyad Bank Saudi Arabia PMI survey, compiled by S&P Global, showed the Kingdom’s Purchasing Managers’ Index reached 56.3 in September, up from 54.8 in August. 

S&P Global noted that any PMI reading above 50 indicates growth in the non-oil sector, while readings below 50 signal contraction. 

Supporting non-oil sector growth is a key goal of Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and reduce dependence on oil revenue. 

“The rise in Saudi Arabia’s PMI to 56.3 shows the highest level in four months, highlighting a notable acceleration in non-oil private sector growth. This uptick was primarily driven by increased output and new orders, reflecting the sector’s expanding activity,” said Naif Al-Ghaith, chief economist at Riyad Bank.  

He added: “Businesses are responding to stronger domestic demand, which plays a critical role in reducing Saudi Arabia’s dependence on oil revenues.”  

Al-Ghaith also emphasized the significance of non-oil sector growth, given current crude production cuts and declining global oil prices. 

To stabilize the market, Saudi Arabia reduced its oil output by 500,000 barrels per day in April 2023, with the cut extended until December 2024. 

“As oil revenues come under pressure, the robust performance of the non-oil private sector serves as a buffer, helping to mitigate the potential impact on the country’s economic health. The diversification of revenue streams is crucial for maintaining growth amid fluctuating oil markets,” said Al-Ghaith.  

The report also indicated that improved business conditions supported employment growth, though companies struggled to find skilled workers in September. 

Despite strengthening demand, firms expressed concerns over competitive pressures, which dampened future activity expectations.  

S&P Global noted that higher competition led to a reduction in selling prices for the third consecutive month, despite rising business costs. 

“Rising output levels not only enhance the competitiveness of Saudi businesses but also drive forward developments aimed at expanding private sector participation in the economy. This shift provides a more stable foundation for long-term growth, making the economy less vulnerable to oil price volatility,” said Al-Ghaith.  

According to the report, growth was robust and widespread across monitored segments of the non-oil economy, with respondents citing higher demand and new project approvals. 

“By expanding output across key non-oil industries, Saudi Arabia is better positioned to navigate the challenges of oil market fluctuations, ensuring a more sustainable and diversified economic future,” concluded Al-Ghaith. 


OPEC+ sticks to output policy, doubles down on compliance

OPEC+ sticks to output policy, doubles down on compliance
Updated 02 October 2024
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OPEC+ sticks to output policy, doubles down on compliance

OPEC+ sticks to output policy, doubles down on compliance

LONDON/DUBAI: A meeting of top OPEC+ ministers has kept oil output policy unchanged including a plan to start raising output from December, while also emphasizing the need for some members to make further cuts to compensate for overproduction.

Several ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, or OPEC+ as the group is known, held an online Joint Ministerial Monitoring Committee meeting on Wednesday.

“The JMMC emphasized the critical importance of achieving full conformity and compensation,” OPEC said in a statement after the meeting. “Furthermore, the committee will continuously assess market conditions.”

Oil prices dropped below $70 a barrel in September for the first time since 2021, but have since rallied above $75 on concerns a possible escalation in the Middle East following Iran’s military attack on Israel could disrupt output from the region.

OPEC+ is cutting output by a total of 5.86 million barrels per day, or about 5.7 percent of global demand, in a series of steps agreed since late 2022.

The group plans a 180,000 bpd increase in December as part of a gradual unwinding of its most recent layer of voluntary cuts extending into 2025. The hike was delayed from October after prices slid.

Countries’ compliance was in focus at the meeting, sources who attended told Reuters, and is expected to remain so in coming weeks, particularly that of Iraq and Kazakhstan.

Those nations have promised what are known as compensation cuts of 123,000 bpd in September and more in later months to make up for their previous over-production.

Iraq, Kazakhstan and Russia told the meeting that they had delivered on their promised cuts in September, the OPEC statement said.

But this will have to be verified by the second week of October by secondary sources — the consultancies and price reporting agencies that the group uses for determining its members’ output levels, the statement added.

The JMMC usually meets every two months and can make recommendations to change policy.

It will hold its next meeting on Dec. 1, ahead of a full meeting of OPEC+.


Saudi Arabia calls for harmonized international efforts to ensure cybersecurity

Saudi Arabia calls for harmonized international efforts to ensure cybersecurity
Updated 02 October 2024
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Saudi Arabia calls for harmonized international efforts to ensure cybersecurity

Saudi Arabia calls for harmonized international efforts to ensure cybersecurity

RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman on Wednesday emphasized the need to “harmonize international efforts” to ensure cybersecurity and “protect children in cyberspace,” the Saudi Press Agency reported.

In a message read at the opening ceremony of the two-day Global Cybersecurity Forum in Riyadh, the crown prince stated: “Cyberspace is closely linked to the growth of economies, the prosperity of societies, the security of individuals, and the stability of nations.”

According to SPA, he noted that due to the cross-border nature of cyberspace, it is essential to harmonize international efforts to seize the opportunities it presents and “face the challenges it presents, by investing in people.”

The event convenes high-level international figures, including former prime ministers, top government officials, decision-makers, policymakers, thought leaders, and CEOs from more than 125 countries. Welcoming the participants, the crown prince said: “The Kingdom of Saudi Arabia has always been a force for good for the benefit of humanity and human prosperity around the world. It has continuously worked to uphold the principle of cooperation and strengthen international collaboration toward efforts that support development and prosperity for all nations. It has initiated several initiatives aimed at achieving these genuine goals in all sectors.”

He added: “Believing in the importance of investing in people in this vital and promising domain, in 2020 we launched two global initiatives. The first relates to protecting children in cyberspace, and the second focuses on empowering women in the field of cybersecurity. The institute for the Global Cybersecurity Forum is entrusted with overseeing both initiatives, as well as implementing the associated projects.”

He highlighted the progress made by these initiatives, particularly the increased understanding of needs at the global level that has led to new and inspiring visions, enabling the GCF to develop impactful initiatives and programs, publish research and studies, and formulate new frameworks and strategies. These efforts empower decision-makers worldwide to develop policies and programs that enhance child protection in cyberspace and promote women’s participation in the field of cybersecurity.