COP28: Second day of leaders’ summit at UN climate talks

COP28: Second day of leaders’ summit at UN climate talks
UN Secretary-General Antonio Guterres took aim at fossil fuels at the opening session of the leaders’ summit. (AFP)
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Updated 30 January 2024
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COP28: Second day of leaders’ summit at UN climate talks

COP28: Second day of leaders’ summit at UN climate talks

DUBAI: Leaders of developing nations jumped into Saturday’s second day of a UN climate summit to press rich industrial countries to share their know-how to fight global warming and ease the financial burdens they face — while trumpeting their own natural resources that swallow heat-trapping carbon in the air.

The annual United Nations Conference of the Parties, known as COP28, in the UAE featured about 150 presidents, prime ministers, royals and other leaders who are presenting their plans to cut heat-trapping emissions and mostly seek unity with other nations to avert climate catastrophe that seemed to draw closer than ever in 2023.

READ MORE: Click here for our coverage of COP28

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FASTFACT

116

The number of countries that have signed up to a commitment to triple the world's renewable energy capacity by 2030.

1151 GMT




Kamala Harris, Vice President of the United States.

“Today, I am proud to announce a new $3 billion pledge to the green climate fund, which helps developing countries invest in resilience, clean energy, and nature-based solutions,” Kamala Harris, Vice President of the United States, said in her speech.

“Today we are demonstrating in action how the world can and must meet this crisis.”

“This is a pivotal moment, our action collectively, or worse our inaction, will impact millions of people for decades to come.”

1132 GMT




Russell Mmiso Dlamini, Prime Minister of Eswatini.

“The commitments made remain just words. Fossil fuels remain high, much against the initial plans,” according to Russell Mmiso Dlamini, Prime Minister of Eswatini.

“In Eswatini, trucks are queuing in large numbers in borders carrying hundreds of tons of coal in transit to the developed world. While this continues the use of nature-based mitigation is being promoted. With such practices, reaching net-zero by 2050 will be impossible and developing countries should not be made to pay through the use of carbon markets.”

“Let us all meet our commitments of deep emission cuts which are largely overdue.”

“Those who have led the way in development and emission should lead the way for mitigation.”

1117 GMT




Anwaar Ul Haq Kakar, Prime Minister of Pakistan.

Anwaar Ul Haq Kakar, Prime Minister of Pakistan: “At least half of climate finance must be allocated to adaptation. Our expectations from COP28 are high but not unrealistic. Let this COP deliver with actions not just words.”

Opinion

This section contains relevant reference points, placed in (Opinion field)

1107 GMT




Edi Rama, Prime Minister of Albania

“The Paris Agreement was a beacon of hope, a promise made by the world to safeguard our planet and its inhabitants. However, the reality falls shorter than the commitments made, and the burden of climate action continues to disproportionately fall on the shoulders of developing nations despite our minimal contribution to the crisis while the big polluters do their best to lecture us but not to stop themselves,” Edi Rama, Prime Minister of Albania, told leaders of the high-level session at the UN climate summit in Dubai.

1056 GMT




Ulf Kristersson, Prime Minister of Sweden.

“My two keywords here today are urgency and opportunity. Urgency based on science and numerous alarming IPCC reports, and opportunity based on the new jobs and growth that the green transition brings,” according to Ulf Kristersson, Prime Minister of Sweden.

1031 GMT




Chinh Pham Minh, Prime Minister of Vietnam

“Developed countries need to provide greater support to developing and least developed countries. This includes preferential capital transfer of advanced technology, high quality human resource development, smart governance, and assistance in improving modern and effective market institutions in line with the unique circumstances of each country,” Chinh Pham Minh, Prime Minister of Vietnam, said in his speech.

“At the same time, developing and least developed countries cannot afford to be passive or overly dependent on external help. Instead, they need to make greater efforts in improving their own capacity pursuing self-reliance and resilience and self-improvement in the spirit of no one can help you better than yourself.”

The poor are the real victims of what is happening: we need think only of the plight of Indigenous peoples, deforestation, the tragedies of hunger, water and food insecurity, and forced migration

Pope Francis, in a letter read by Vatican Secretary of State Cardinal Pietro Parolin at the high-level session of COP28 in Dubai

1022 GMT




Alexander De Croo, Prime Minister of Belgium.

“The private sector science tells us that, unless there are immediate rapid and large-scale reductions in greenhouse gas emissions, limiting global warming to 1.5°C will be beyond reach,” according to Alexander De Croo, Prime Minister of Belgium.

“Climate issue belongs neither to the deniers nor to the alarmist, it belongs to those who get up early, to those who grab every opportunity to contribute in speeding up the transition.”

1016 GMT




Patrice Emery Trovoada, Prime Minister of Sao Tome and Principe.

Patrice Emery Trovoada, Prime Minister of Sao Tome and Principe: “To hear about these billions of dollars that are promised but are never received, this does not work with countries such as mine.”

“We prefer to rely on the liberating force of creativity and technological information and to rely on AI and to combat and to fight.”

1011 GMT




Terrance Drew, Prime Minister of Saint Kitts and Nevis.

“With 50,000 plus people, our small size and notable position as the smallest independent nation in the Western Hemisphere presents opportunity with the convergence of our geostrategic outlook global collaboration and focused investments especially in our energy sector,” Terrance Drew, Prime Minister of Saint Kitts and Nevis told the high-level segment of the UN climate talks.

“We can become the first model sustainable island state to be found anywhere in the world showcasing the path to progress and prosperity.”

1005 GMT




Petteri Orpo, Prime Minister of Finland.

“Finland remains committed to supporting developing countries in their climate action,” said Petteri Orpo, Prime Minister of Finland.

“Finland stands ready to support the new fund with €3 million. We underline the continued importance of other funding mechanisms including those supporting early warning system. We must also ensure that all financial flows are in the line with the Paris Agreement.”

1002 GMT




Philip Joseph Pierre, Prime Minister of Saint Lucia.

Philip Joseph Pierre, Prime Minister of Saint Lucia: “The impacts have been devastating to our region. Loss and damage have struck at the core of our economies and our societies.”

“At one extreme, lives and livelihoods have been lost and the extreme our environment is under siege.”

We will be working to accelerate unabated coal phase-out across the world, building stronger economies and more resilient communities. The first step is to stop making the problem worse: stop building new unabated coal power plants

Special Envoy John Kerry, in announcing that the US is joining the Powering Past Coal Alliance

0955 GMT




Leo Varadkar, Prime Minister of Ireland.

“With the high cost of living and high energy prices, many worry about how much the transition will cost and what it will mean for their jobs and incomes and living standards. These are legitimate concerns and we need to hear them we need to understand where people are coming from and offer reassurance,” said Leo Varadkar, Prime Minister of Ireland.

“Change is difficult but we must do everything in our power to make sure that the transition is just protecting the vulnerable and leaving nobody behind.”

“Today I am announcing a contribution of €25 million to the new loss and damage fund for 2024 and 2025, and we will make further contributions thereafter.”

0949 GMT




Joss Ulisses De Pina Correia e Silva, Prime Minister of Cabo Verde

“It is a political obligation for all countries, for all leaders to make a top priority out of jointly implementing the solutions and the commitments that we have signed up to. And here, time is the critical factor because nature continues on its course reacting to the conditions that human beings create with their actions and their emissions,” Joss Ulisses De Pina Correia e Silva, Prime Minister of Cabo Verde, said in his national statement.

“We encourage there to be a clear and urgent definition of the financing mechanism for loss and damage. We reaffirm also the urgent need to adopt the multidimensional vulnerability index as part of the climate finance criteria.”

FASTFACT

$3 billion

Amount that the United States has pledged to the Green Climate Fund. The latest pledge would be additional to another $2 billion previously delivered by the US.

0943 GMT




Dalton Emani Makamau Tagelagi, Prime Minister of Niue.

“Time is up and urgent action is now needed to deliver climate finance for lost and damage,” according to Dalton Emani Makamau Tagelagi, Prime Minister of Niue. “Niue is a net sink and has no responsibility for the causes of climate change. Niue is at high risk of tropical cyclones this season and of drought.”

“My people were living in fear of another catastrophic cyclone. Residents and low-lying coastal areas have slowly moved to higher ground to avoid detrimental impacts from damaging heavy swells.”

 

 

0936 GMT




Philip Davis, Prime Minister of Bahamas.

“How long must we now wait to have this new fund capitalized and how long must we wait before we can assess access the funds? Time is the luxury we do not have,” Philip Davis, Prime Minister of Bahamas, said in his speech.

0932 GMT




Gaston Browne, Prime Minister of Antigua and Barbuda.

“We are facing an existential paradox, the smallest contributors to global CO2 emissions yet among the hardest hit by climate catastrophe. This is not just an environmental crisis it is a glaring testament to the world where profits are prioritized over people and planets,” said Gaston Browne, Prime Minister of Antigua and Barbuda.

“It is a world where oil and gas conglomerates, shielded by the power of wealthy nations, continue to reap astronomical profits while the survival of nations like ours hangs in the balance.”

0926 GMT




Housain Al-Arnous, Prime Minister of Syria.

Housain Al-Arnous, Prime Minister of Syria: “It is time to work seriously to advance climate action and to accelerate emissions reduction through energy transition and also through using land sustainably and in an integrated manner. It is time to transition to sustainable food systems and to operationalize systems to limit loss and damage.”

Syria suffers from the impact of climate change. This is evident in the declining rainfall and the rise in dust storms and heat waves.”

0914 GMT




Giorgia Meloni, Prime Minister of Italy.

“Italy is doing its part in the carbonization process and it does it in a pragmatic way that means with the technology neutral approach free from unnecessary radicalism,” according to Giorgia Meloni, the Prime Minister of Italy.

“Italy intends to direct an extremely significant share of the Italian climate fund whose overall endowment is €4 billion to the African continent, not however through a charitable approach, because Africa does not need charity, it needs to be put in the condition to compete on an equal footing in order to grow and prosper thanks to the multitude of resources that the continent possesses.”

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Pope Francis pleads with COP28 to find breakthrough on climate change

DUBAI: Pope Francis on Saturday called on the UN climate summit to strive for a essential breakthrough agreement to stem global warming that includes the elimination of fossil fuels, saying climate had “run amok.”

The 86-year-old pope had planned to attend the conference but a lung inflammation forced him to remain in the Vatican. His full address was left with delegates and Vatican Secretary of State Cardinal Pietro Parolin shortened it in order to remain within the 3-minute time limit for speeches.




Pope Francis had planned to attend the conference but a lung inflammation forced him to remain in the Vatican. (AFP)

“Sadly, I am unable to be present with you, as I had greatly desired. Even so, I am with you, because time is short,” Francis said in his message.

“I am with you because now more than ever, the future of us all depends on the present that we now choose. I am with you because the destruction of the environment is an offense against God,” he said.

“May this COP prove to be a turning point, demonstrating a clear and tangible political will that can lead to a decisive acceleration of ecological transition,” he said. – Reuters

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0909 GMT




Robert Abela, Prime Minister of Malta.

“We are working hard to achieve a 55 percent emission reduction by 2030 as compared to 1990 levels. Malta has also achieved a lot in these past years but we want to be more ambitious and to do much more: Robert Abela, Prime Minister of Malta, said in his speech.

“Having the lowest gross emission per capital among the EU member states means that our efforts need to be sturdier. In the past ten years we have managed to reduce our greenhouse gas emissions from the energy sector by 60 percent.”

0902 GMT




Petr Fiala, Prime Minister of Czechia.

“My country support the Paris agreement of the EU climate and energy including the goal of carbon neutral economy by 2050. We are taking steps to stop coal for electricity and heating by 2033. In part this can be achieved by renovating buildings and developing renewable energy sources,” according to Petr Fiala, Prime Minister of Czechia.

“I want to be clear that the success of our wider climate goals is fundamentally dependent on nuclear energy. This is a good thing as nuclear power is both reliable and clean so we should use its benefits.”

0846 GMT




Jonas Gahr Store, Prime Minister of Norway.

Jonas Gahr Store, Prime Minister of Norway: “Norway supports the call for global tripling of renewables and doubling of energy efficiency by 2030.”

0829 GMT




Antonio Costa, the Prime Minister of Portugal.

Antonio Costa, the Prime Minister of Portugal, meanwhile said: “Climate transition in Portugal will present an enormous opportunity. An opportunity for research, development, towards innovation. An opportunity of investment, most of them already engaged, with an amount of €85 billion in the next two decades, representing 35 percent of our GDP.”

 

 

0823 GMT




Katrin Jakobsdottir, Prime Minister of Iceland.

“We need to do more to cut emissions, a lot more. We need to accelerate a green energy transition, scale up green solutions, increase nature-based solutions, and make sure those who pollute pay,” Katrin Jakobsdottir, Prime Minister of Iceland, said in her statement.

“But we also need to do less. Our economic systems focus on maximizing production and consumption rather than sustainability and wellbeing. And this needs to change.”

“Iceland supports the phasing out of fossil fuels and subsidiaries of fossil fuels need to end. We should not burn public money to cook the planet, instead we should scale up support for clean solutions.”

0814 GMT




Kyriakos Mitsotakis, the Prime Minister of Greece.

“We have cut our coal use by over 80 percent. We are growing our economy at a much faster pace than the Eurozone average while reducing emissions. In total, our emissions are down by 43 percent from 2005 as we turn to renewable energy, the best performance amongst European countries,” Kyriakos Mitsotakis, the Prime Minister of Greece, said in his statement.

0802 GMT




Mark Brown, Prime Minister of Cook Islands.

“To put it plainly, the world must fulfill its financial commitments. It is as simple as that. In 2022, the IMF reported that $7 trillion were spent on fossil fuel subsidiaries, yet the global commitment to $100 billion per year to the Paris Agreement continues to struggle for fulfillment,” according to Mark Brown, Prime Minister of Cook Islands.

0753 GMT




Andrej Plenkovic, the Prime Minister of Croatia.

“We need to do much more to curb climate change. However, we are doing the opposite. Half of the CO2 emissions emitted in the last two centuries have been emitted in the past three decades, and they continue to grow,” according to Andrej Plenkovic, the Prime Minister of Croatia.

0749 GMT




Kaja Kallas, the Prime Minister of Estonia.

“Today, digital is enabling our green reform. Estonia’s parliament has adopted a new renewable electricity target of 100 percent by 2030. More than tripling our level of renewable production,” according to Kaja Kallas, the Prime Minister of Estonia.

0749 GMT




Mia Amor Mottley, Prime Minister of Barbados.

“We’ve seen this year, one third of the days of the year exceed 1.5°C, this is a death sentence. And the reality is, unless we change course, we are going to see far more lives lost and far more damage done,” Mia Amor Mottley, Prime Minister of Barbados, said in her speech.

0744 GMT




Evariste Ndayishimiye, President of Burundi.

Evariste Ndayishimiye, President of Burundi, in his country statement, said “Burundi has committed via the Nationally Determined Contributions to protect the environment, to strengthen resilience towards climate change, and to boost food security. This is infused in our national policies and our vision for Burundi. An emerging country by 2040, and a developed country by 2060.”

0733 GMT




Kausea Natano, Prime Minister of Tuvalu.

“Though I applaud the current status of loss and damage (fund) and the inflow of funding supports, it is our hope that the challenge on the accessibility to the fund is limited or is eliminated,” said Kausea Natano, Prime Minister of Tuvalu, in his statement.

0724 GMT




Joao Manuel Goncalves Lourenco, President of Angola.

“Tackling the issue of climate change is one of the key priorities in all sustainable development programs and strategies in the Republic of Angola. It is a critical concern and one that deserves special attention,” Joao Manuel Goncalves Lourenco, President of Angola, said.

“We are committed to changing our national energy matrix prioritizing clean energy production sources and we’re doing this through the construction of hydroelectric plants and solar panels parks, which means that more than 65 percent of the current 6,400 MW of energy produced in the country now come from ecological sources.”

0717 GMT




David Choquehuanca Cespedes, Vice President of Bolivia.

“Developing countries have prepared a broad path for developed countries who rely on our resources and yet trample all over us and do not allow us to tread the path with them,” David Choquehuanca Cespedes, Vice President of Bolivia, said in his statement.

“There can be no climate justice climatic without understanding genuine life sciences. There can be no climate justice without recognizing that human intelligence is what is important not artificial intelligence.”

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Over 110 countries set to join COP28 deal to triple renewable energy

A pledge to triple the world’s installed renewable energy by 2030 is poised to win support from more than 110 countries at the COP28 climate summit on Saturday, with some pushing to make the deal global by the end of the UN conference.

The European Union, United States and COP28 host the UAE have been rallying support for the pledge as a means to the sharp drop in planet-warming emissions needed this decade to avoid unleashing more severe climate change.

Whether governments and companies will rally the huge investments needed to hit the goal is an open question. While deployment of renewables like solar and wind has been surging globally for years, rising costs, labor constraints and supply chain issues have forced project delays and cancellations in recent months.

Getting the deal into the final UN climate summit decision would also require consensus among the nearly 200 countries present. While China and India have signaled support for tripling global renewable energy by 2030, neither has confirmed it will back the overall pledge – which pairs the ramp-up in clean power with a reduction in fossil fuel use. – Reuters

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0708 GMT




Olaf Scholz, the Chancellor of Germany.

“It is still possible for us to reduce emissions this decade and for us to reach a level that would allow us to achieve the 1.5°C goal, however, science tells us that we need to step up the pace,” according to Olaf Scholz, the Chancellor of Germany.

“I would like to present the following three proposals for you today. First, let us make the expansion of renewables our number one priority in energy policy globally. Let us agree on two binding targets here in Dubai, tripling the expansion of renewables and doubling energy efficiency, both by 2030.”

“As long as we still have to rely on gas, we have to ensure that we produce and transport it in as climate friendly as possible.”

“My second point concerns our international cooperation. We need forms in which to develop common solutions for the challenges of transformation.”

“My third proposal concerns solidarity and responsibility. Already in the year 2022, Germany has surpassed its objective of making available €6 billion ($6.5 billion) per annum for international climate finance.”

“I’m also confident that we will also achieve our goal of making available $100 billion per annum for international climate action together with other industrialized countries.”

0658 GMT




Mohammed B. S Jallow, Vice President of Gambia.

“We recognize that transitioning to a low carbon sustainable economy is not only an environmental imperative but also an economic opportunity; therefore, we are still committed to promoting the use of green and clean energy, sustainable agriculture, and eco-friendly technologies,” Mohammed B. S Jallow, Vice President of Gambia, said in his speech.

“This transition will not only reduce our carbon footprint but also create jobs stimulate innovation and improve the quality of our life of our citizens.”

0651 GMT




Mokgweetsi Eric Masisi, President of Botswana.

“The government of Botswana has made a decision to increase renewable energy penetration from two percent to 30 percent by 2030,” according to Mokgweetsi Eric Masisi, President of Botswana.

“As a developing country, Botswana prioritizes adaptation as it reduces the vulnerability of communities to climate related hazards and in so doing protecting livelihoods and ecosystems as well as enabling them to be more resilient.”

0643 GMT




Chandrikapersad Santokhi, President of Suriname.

“As part of the eight Amazonian countries united in the Amazon corporation treaty organization, we are also committed to fight deforestation of the Amazon region. My country and people are forced to adapt to extreme dry and wet weather events which cause losses and damages,” Chandrikapersad Santokhi, President of Suriname, said in his national statement.

“At the same time, we must respond to the legitimate demands of our population for economic development and diversification as we do through a balanced approach consisting of developing the natural resources through environment-friendly strategy by sustainable forest management and active protection of biodiversity and also by continued transition to green energy and other green innovations and technologies.”

0633 GMT




Faustin-Archange Touadera, President of the Central African Republic.

“Africa which bears least responsibility in terms of emissions, responsible for just four percent of global emissions, but unfortunately, Africa is a primary victim of the direct impacts of climate change,” according to Faustin-Archange Touadera, President of the Central African Republic.

“Central African Republic has been classed among the five countries which are most threatened by the effects of climate change.”

“When it comes to determining who should pay for the climate bill, the answer is, bearing in mind the gap between developed countries which are the primary polluters and poor countries, it would be logical for the former to finance the mitigation process.”

0617 GMT




Salva Kiir Mayardit, President of South Sudan.

“For four years now, the country is suffering from floods, droughts, excessive heat high temperatures, and irregular rain patterns. These climate change related factors have negatively affected the livelihood of our people the people are internally displaced,” Salva Kiir Mayardit, President of South Sudan said in his national statement speech.

“That is causing subnational conflicts between the displaced and host communities. So, peace and security are clearly affected as a result of climate change.”

“We have come to this COP28 with the hope that we, the world leaders, will commit ourselves to the implementation of the provisions of the Paris Agreement.”

“Climate change financing to the less developed countries is very important so that these countries can implement their climate adaptation and mitigation projects,” he added.

0605 GMT




Nana Addo Dankwa Akufo-Addo, President of Ghana.

“We are all now aware that climate change has an enormous impact on the fundamentals required for our survival on earth. It imposes developmental constraints and burdens on are already stretched resources and we, in Ghana are witnessing this phenomenon for ourselves at first hand,” said Nana Addo Dankwa Akufo-Addo, President of Ghana.

“A few weeks ago parts of my country Ghana were confronted with the severe humanitarian crisis triggered by the spillage of water from our country’s largest hydroelectric dam due to unusually high rainfall patterns.”

“We encourage our international partners to support the V20 loss and damage fund, the global shield against climate risk, and ultimately the UNFCCC loss and damage fund to ensure the availability of robust social safety nets for the developing world during such climate crisis.”

0551 GMT




Obiang Nguema Mbasogo, President of Equatorial Guinea.

“Africa is one of the regions with the highest rates of carbon capture and oxygen release in the world; yet, paradoxically we are the region which draws the least benefits,” according to Obiang Nguema Mbasogo, President of Equatorial Guinea.

“In light of that it’s not enough, in our view, for developed countries to simply wring their hands and make empty promises. Rather, they need to fulfill their commitments and obligations under the Paris agreement that we achieved at COP21 and ensure the rollout and implementation of tangible concrete action to mitigate the adverse impact of climate change.”

“We issue an urgent call for renewed commitment at COP28 to provide Africa with adequate transparent and just financing going forward as well as ensuring the requisite transfer of technology.”

Mbasogo faulted developed nations for failing to deliver on their pledges to meet their commitments on financing for climate action and meet their own targets to curb their industries’ emissions.

“Africa is one of the regions in the world that sequesters the most carbon and emits oxygen,” he said.

0544 GMT




Jose Ramos Horta, President of Timor-Leste.

“I urge the WHO to declare a public health emergency of international concern, the highest level of emergency that can be declared by WHO,” Jose Ramos Horta, President of Timor-Leste, said in his speech.

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The Israel-Hamas conflict also loomed large in the proceedings with several leaders voicing sympathy for the Palestinians in Gaza as the week-long ceasefire ended, and vigorous efforts to extend the truce collapsed.

Israel bombarded eastern areas of Khan Younis in southern Gaza right after the truce ended.




Jordan’s King Abdullah II speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)

“This year’s conference of the parties must recognize even more than ever that we cannot talk about climate change in isolation from the humanitarian tragedies unfolding around us,” King Abdullah II of Jordan said in his speech.

“As we speak, the Palestinian people are facing an immediate threat to their lives and wellbeing. In Gaza over 1.7 million Palestinians have been displaced from their homes. Tens of thousands have been injured or killed in a region already on the front line of the climate change.”

 

 

The high-level session was also a day of financial commitments, with host country UAE announcing the establishment of ALTÉRRA, the largest private climate vehicle, and a $30 billion commitment to the vehicle with the aim of mobilizing $250 billion of private-sector investment by 2030.

with agencies


Saudi Arabia, Oman sign MoU to further strengthen economic ties

Saudi Arabia, Oman sign MoU to further strengthen economic ties
Updated 10 October 2024
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Saudi Arabia, Oman sign MoU to further strengthen economic ties

Saudi Arabia, Oman sign MoU to further strengthen economic ties

JEDDAH: Saudi Arabia and Oman have signed a memorandum of understanding aimed at bolstering economic and planning cooperation based on mutual interests.

The agreement was finalized on Thursday in Riyadh, with Saudi Minister of Economy and Planning Faisal Al-Ibrahim and his Omani counterpart, Said bin Mohammed Al-Saqri, signing a five-year commitment focused on enhancing medium- and long-term economic planning, studies, and modeling, alongside monetary policies and strategies.

The pact highlights a commitment to promoting a green and circular economy, as stated by the Saudi Ministry of Economy and Planning.

Trade between Saudi Arabia and Oman reached SR36.8 billion ($9.81 billion), with Saudi exports accounting for SR22.5 billion, reflecting the growing economic ties between the two nations.

Implementation of the cooperation outlined in the memorandum will involve the exchange of information, experiences, and studies, as well as mutual visits by experts and specialists. The agreement also includes plans for hosting conferences, seminars, and workshops.

The Saudi ministry emphasized that such memorandums would enhance cooperation among Gulf Cooperation Council countries and strengthen bilateral relations between Saudi Arabia and Oman.

On Oct. 9, Saudi Commerce Minister Majid Al-Qasabi welcomed Al-Saqri and his delegation, discussing ways to enhance trade and economic partnerships while addressing various economic topics to boost intra- and external trade among GCC members.

Al-Qasabi underscored that the nation’s economic reforms, guided by Crown Prince Mohammed bin Salman as part of Vision 2030, are designed to implement structural changes that promote sustainable economic growth, leveraging significant developmental opportunities within the Kingdom.

He noted that these reforms have improved the business environment and elevated Saudi Arabia’s global competitiveness, as evidenced by positive international economic indicators.

In April, a MoU was signed between the Kingdom and Oman during a meeting between Sultan bin Salem Al-Habsi, Oman’s minister of finance, and Sultan Abdulrahman Al-Marshad, CEO of the Saudi Fund for Development. Discussions during that meeting focused on cooperation mechanisms between Oman and the fund, as well as updates on collaborative development projects.

The primary objective of these efforts is to enhance the industrial and logistical sectors in Oman, providing essential services to encourage private sector investment in line with the country’s Vision 2040, as reported by the Omani News Agency.

The memorandum is part of broader initiatives aimed at supporting developmental efforts in Oman, including infrastructure, higher education, vocational training, and projects in industry, mining, transportation, communications, and energy sectors.


Closing Bell: Saudi main market closes in green at 11,995.22

Closing Bell: Saudi main market closes in green at 11,995.22
Updated 10 October 2024
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Closing Bell: Saudi main market closes in green at 11,995.22

Closing Bell: Saudi main market closes in green at 11,995.22

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 66.89 points, or 0.56 percent, to close at 11,995.22. 

The total trading turnover of the benchmark index was SR5.85 billion ($1.56 billion) with 185 of the listed stocks advancing and 39 declining. 

The MSCI Tadawul Index also gained 8.14 points to close at 1,504.4.

Similarly, Saudi Arabia’s parallel market gained 69.81 points to close at 24,522.95. 

The primary driver behind the main index’s positive performance was Arab Sea Information System Co., whose share price surged by 9.9 percent to SR7.44. 

On Oct. 9, the company announced the resignation of board member Turki bin Nasser Al-Dahmash, effective immediately. 

Al-Dahmash stepped down for personal reasons after serving on the board for just over a year. 

This comes amid other strategic shifts within the firm, as Arab Sea continues to focus on expanding its technological services, particularly through its newly established cloud computing unit, Era Data, which launched in 2023 with a capital of SR5 million.

Other top performers in the main market include Thob Al Aseel Co. and Al-Baha Investment and Development Co., as their share prices soared by 9.09 percent and 7.69 percent to SR4.80 and SR0.42, respectively. 

Thob Al Aseel Co., a prominent Saudi company specializing in traditional clothing, has been making significant financial strides in 2024. For the first quarter of the year, the firm reported a net profit increase of 44 percent, reaching SR40.1 million. 

This growth was driven by a rise in sales and improvements in profit margins, particularly from high-demand items. Revenue grew by 10.9 percent, and gross income jumped by 21.3 percent, reflecting the company’s strong performance amid increasing market demand.

The worst performer on the benchmark index was Herfy Food Services Co. The firm’s share price dropped by 4.11 percent to SR26.8. 

Recently, Herfy Food Services Co. has been in the spotlight due to internal corporate tensions. The company’s largest shareholder, Savola Group, which holds a 49 percent stake, has requested a shareholder vote to dismiss a board member, Mohammed Abdulaziz Al-Shetwey.

This move is part of an ongoing dispute between Savola and Herfy’s management, raising concerns about governance issues within the company. The shareholder meeting, scheduled for November, will address this matter alongside other significant agenda items.


Middle East conflict poses risk to regional sovereign credit ratings: S&P

Middle East conflict poses risk to regional sovereign credit ratings: S&P
Updated 10 October 2024
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Middle East conflict poses risk to regional sovereign credit ratings: S&P

Middle East conflict poses risk to regional sovereign credit ratings: S&P
  • Increased instability could impact regional governments’ economic outlook and financial stability
  • Although Lebanon remains in default, its economic and recovery prospects have further deteriorated

RIYADH: The ongoing conflict in the Middle East threatens to undermine sovereign credit ratings across the region if it escalates, according to S&P Global. 

The agency warned that increased instability could impact regional governments’ economic outlook and financial stability, with broader implications for creditworthiness depending on the conflict’s trajectory. 

While the immediate effects have been largely contained to specific areas, there are growing concerns that prolonged geopolitical tensions could lead to broader economic disruption across the region, it added. 

“So far, the sovereign credit impact of the conflict has been confined to the two rated sovereigns directly involved in the conflict: Israel and Lebanon. However, we now foresee several potential pathways via which the conflict could have a more material credit impact on the rest of the region,” said S&P Global. 

Its rating on Israel is now two notches lower than on Oct. 7, 2023, reflecting weaker fiscal and growth expectations through 2025, along with significantly heightened security risks. 

The agency also indicated that, although Lebanon remains in default, its economic and recovery prospects have further deteriorated. 

The report said that key areas of vulnerability include energy prices, trade route security, and capital flows, all of which could face heightened pressure if the conflict continues into 2025 as expected. 

The agency also said that the persistent uncertainty is likely to weigh on investor confidence, potentially leading to capital outflows and increased volatility in regional markets. 

While the geopolitical tensions have so far had a limited direct impact on the credit metrics of most Middle Eastern sovereigns, S&P said the potential for wider regional economic stress is growing. 

The conflict could affect key economic indicators such as growth, tourism revenues, remittances, and fiscal balances, depending on how the situation evolves. 

Countries more dependent on stable energy prices or vulnerable to trade disruptions, such as energy importers, could face more pronounced fiscal risks, while oil exporters in the Gulf may benefit from rising oil prices in the short term, it added. 

“Such trade disruptions could be a key challenge for the region, with the potential to increase oil prices and pose fiscal risks to energy importers, although higher oil prices could mitigate the risk for Gulf exporters particularly if the risks of export routes being blocked or oil production facilities being disrupted, remain contained,” added S&P. 

It said sovereign credit ratings in the region are already factoring in elements of geopolitical risk, but the current conflict could amplify these risks and lead to further rating downgrades. 

“Further, we now view the conflict as more complex and unpredictable and consider it more likely to persist well into 2025, with potentially lingering aftereffects,” added S&P. 


Oman’s public revenues see annual rise of 2.3%

Oman’s public revenues see annual rise of 2.3%
Updated 10 October 2024
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Oman’s public revenues see annual rise of 2.3%

Oman’s public revenues see annual rise of 2.3%
  • Net oil revenues reached an estimated 4.65 billion by the end of August
  • Average achieved oil price reached $83 per barrel

RIYADH: An increase in Oman’s net oil revenues drove a 2.3 percent year-on-year rise in public earnings, reaching 8.12 billion Omani rials ($21.07 billion) between January and the end of August, according to new figures. 

The monthly bulletin issued by the Ministry of Finance said that net oil revenues reached an estimated 4.65 billion rials by the end of August, reflecting a 12 percent surge compared to the same period last year.  

The growth in figures suggests vibrant and expanding economic activity, with more funds circulating within the country. 

Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter, reaching $16.1 billion, the country’s news agency reported in August.  

The sultanate’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations.  

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

The bulletin further showed that the average achieved oil price reached $83 per barrel, while the average oil production amounted to about 1.1 million barrels per day. 

The increase in net oil revenues is attributed to the methodology used by the government-owned firm Energy Development Oman to collect crude earnings and manage cash liquidity.

Net gas revenues reached 1.43 billion rials, reflecting a 15 percent drop by the end of August compared to the corresponding period in 2023. This is due to the change in the methodology for collecting gas revenues.

Current earnings collected until the end of August also decreased by 104 million rials compared to the same period last year to reach about 2.23 billion rials.

The bulletin also revealed that public spending until the end of August amounted to 7.66 billion, an increase of 7 percent compared to actual expenditure during the same period of 2023.

The most prominent expense is the current civil ministry fees, which amounted to 5.43 billion rials, down by 30 million rials compared to the same period in 2023.

Development expenditures of ministries and civil units amounted to 735 million rials by the end of August, with a disbursement rate of 82 percent of the total development liquidity allocated for 2024, which amounted to 900 million rials.

Total contributions and other expenditures amounted to 1.44 billion rials, up by 58 percent year on year. This is primarily owed to the implementation of the social protection system this year.

Support for the social protection system, electricity sector, and petroleum products until the end of August amounted to about 373 million rials, 295 million rials, and 191 million rials, respectively, while the transfer to the debt repayment provision amounted to 266 million rials.

With regard to global and local economic performance, the bulletin explained that the Organization for Economic Co-operation and Development indicated in its interim outlook report issued in September that global growth is expected to stabilize at 3.2 percent in 2024 and 2025, in line with the average increase rate observed during the first half of this year.

The organization also suggested that the delayed impact of tightening monetary policy in the economies of advanced countries has begun to moderate, in addition to easing monetary policies and lower inflation that will support interest rates in 2025. It also disclosed that the inflation rate decline will provide additional support to the growth of real per capita income and private consumption in many economies.

Regarding global oil markets, the bulletin stated that according to the US Energy Information Administration’s Short-Term Energy Outlook report in September, the average price of Brent spot crude is expected to reach about $83 per barrel in 2024, while the average price of Brent spot crude is expected to reach $84 per barrel in 2025.

As for the local economy, S&P raised its credit rating for the Sultanate of Oman to “BBB-” with a stable outlook in its report issued in September, placing it in the first degrees of the investment worthiness index after seven years.

This is due to the continued measures to improve public finances through development initiatives and efforts in the financial and economic sectors and government restructuring. This contributed to restoring the monetary balance between revenues and public spending as intended in the medium-term plan.

This comes in addition to the government’s commitment to reducing the state’s public debt, managing government companies, and decreasing indebtedness.

The agency expected that Oman would achieve moderate financial surpluses of 1.9 percent during the period from 2024 to 2027, growth in real gross domestic product of about 2 percent annually, and record financial surpluses in the current balance of 1.2 percent of GDP.


Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 
Updated 10 October 2024
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Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

Riyadh’s residential transactions soar 52% as Saudi housing market flourishes 

RIYADH: Saudi Arabia’s residential market witnessed a 51.6 percent surge in transactions in Riyadh over the year to the end of the second quarter of 2024, a new analysis showed, as the sector continues its robust growth. 

According to a report by real estate services firm CBRE, the capital city recorded 18,500 sales valued at SR26.6 billion ($7.08 billion) during this period, and the Kingdom’s residential market is set for further growth, fueled by population increases and government-backed investment projects. 

Jeddah also experienced a significant rise in transaction volumes, rising 43.2 percent year on year to 9,392 sales, while the Dammam Metropolitan Area saw a 22.4 percent increase, totaling 2,390 sales worth SR2.4 billion. 

Under Vision 2030, Saudi Arabia aims to achieve a 70 percent home ownership rate by the end of the decade. To support families in reaching this goal, the Kingdom has established the Sakani program, which offers personalized housing and financing solutions. 

Matthew Green, head of research Middle East and North Africa in CBRE, said: “The fundamentals for Saudi Arabia’s residential sector remain incredibly strong, as reflected in the sustained rental growth across key markets in the Kingdom.”  

He added: “Riyadh particularly is demonstrating attributes of an undersupplied market, driven by strong employment and population growth on the back of government investment projects, resulting in very tight supply in certain areas of the market as new deliveries fail to keep pace with the robust housing demand.” 

In the first half of 2024, Riyadh’s total residential rental transactions rose 6.1 percent to 274,146, while Jeddah saw a 2.3 percent year-on-year decline in rental transactions, totaling 183,894. 

Average apartment prices in the Saudi capital have appreciated approximately 11.7 percent annually since the third quarter of 2020, reaching SR5,000 per sq. meter by the end of the second quarter of 2024. 

“Average villa prices have also generally been on an uptrend since 2019 despite encountering a brief dip in early 2020 and again in early 2021, when values dropped 4.8 percent to SR3,820 per sq. meter, while prices have seen robust growth, with average villa values now resting around SR5,824 per sq. meter at the end of June, after rising 3.3 percent year-on-year,” said CBRE. 

In Jeddah, average apartment prices peaked before a 0.9 percent dip in the second quarter of 2024, now sitting at SR3,945 per sq. meter, while villa prices have seen a compound annual growth rate of 4.4 percent since 2020, reaching SR5,707 per sq. meter, according to CBRE. 

The analysis also highlighted that a segment of the population is seeking ideal financing options for suitable mortgage provisions to facilitate home acquisition, despite government efforts to enhance retail financing facilities through local banks. 

Highest priced districts 

The report identified Hittin and Al-Malqa as Riyadh’s most expensive districts for villas, with prices ranging from SR9,500 to SR13,500 per sq. meter. This was followed closely by Al-Malqa district with SR8,000 to SR12,900 per sq. meter. 

“At the other end of the spectrum, districts such as As-Suwaidi and Al Aziziyah commanded the lowest prices, with average villa prices ranging from SR2,150 per sq. meter to around SR4,800 per sq. meters in As-Swuaidi and SR2,200 per sq. meter, to SR4,050 per sq. meter in Al-Aziziyah,” added CBRE. 

The report noted that popular districts in Riyadh, such as As-Sulimaniyah, Al-Taawun, and An Nakheel, continue to command the highest average apartment prices.

In As-Sulimaniyah, the average sale price for apartments ranges from SR6,600 to SR10,500 per sq. meter, while in An Nakheel, prices average between SR7,200 and SR10,300 per sq. meter.

“The best value was to be found in districts such as Dar Al-Baida and Al Aziziyah, with prices ranging from SR1,900 per sq. meter to around SR3,250 per sq. meter and SR2,700 per sq. meter to SR 4,200 per sq. meter respectively across the two neighborhoods,” added CBRE. 

In Jeddah, the Ash Shati and Al-Murjan districts command the highest villa prices, with ranges from SR7,500 to SR13,350 per sq. meter. Conversely, areas like Al-Amir Fawwaz present more budget-friendly options starting at SR2,300 per sq. meter. 

CBRE reported that branded residences along the Red Sea command the highest values in prominent districts like Obhur Al-Junobiyah, with rates ranging from SR4,700 to SR7,400 per sq. meter. 

“The steady delivery of new apartments into Jeddah’s residential market over the past 18 months has resulted in significant fluctuation in average apartment sale prices,” said CBRE. 

It added: “The large quantum of new supply in districts such Al-Marwah, As Salamah and As Safa has resulted in saturating of the segment, skewing average prices. Branded residences along the Red Sea continue to command the highest values in prominent districts like Obhur Al-Junobiyah, whilst the lowest sale prices are found in Ar Rayyan.” 

As investment projects and population growth further stimulate the sector, Riyadh, Jeddah, and the Dammam Metropolitan Area are positioned for continued expansion, making real estate a vital component of the Kingdom’s economic diversification strategy under Vision 2030.