‘Energy demand in the Kingdom is expected to keep increasing’

Special ‘Energy demand in the Kingdom is expected to keep increasing’
Electricity consumption in the Kingdom has been growing since 2010 in terms of total consumption and consumption per capita, a 2022 study by Umm Al-Qura University showed. (SPA)
Short Url
Updated 07 April 2024
Follow

‘Energy demand in the Kingdom is expected to keep increasing’

‘Energy demand in the Kingdom is expected to keep increasing’
  • We are committed to supporting our partners in KSA, says Adel Al-Juraid, CEO of Mitsubishi Power in Saudi Arabia

RIYADH: Japan’s Mitsubishi Power is committed to supporting Saudi Arabia’s growing demand for energy to help it achieve the prosperity outlined in Vision 2030, according to a top official.

Adel Al-Juraid, CEO of Mitsubishi Power in Saudi Arabia, shared profound insights into the company’s transformative journey in an interview with Arab News, offering a comprehensive overview of their vision, initiatives, and contributions to the Kingdom’s energy sector.

Saudi Arabia is facing a growing electricity demand due to a growing population and increased economic activity. 

Electricity consumption in the Kingdom has been growing since 2010 in terms of total consumption and consumption per capita, a 2022 study by Umm Al-Qura University showed.

Between 2010 and 2017, per capita electricity consumption in Saudi Arabia increased by 20 percent, compared to the US in which it decreased by over 5.9 percent.

“Based on the current energy policy and rapid growth in population and economy, the peak demand in Saudi Arabia is expected to keep increasing and reach approximately 84 GW by 2030 and 103 GW by 2040,” the study predicted.

This increase is very much in the mind of Al-Juraid, and the CEO said: “We are committed to supporting our partners in the Kingdom to meet the country’s growing demand for power.”

He added: “This includes delivering our state-of-the-art low carbon power technology solutions and services to the Kingdom.”

Reflecting on the firm’s history of collaboration with Saudi Arabia, the CEO remarked: “We are proud of our long-standing heritage in the Kingdom.”

Al-Juraid went on to elaborate on the company’s extensive involvement in major projects across the Kingdom, saying: “We have worked on major projects in the Kingdom, including Rabigh, Qurayyah, and the 2.650 gigawatt Jeddah South Thermal Power Plant which features Mitsubishi Power advanced gas turbines and steam turbines.” 

The company has delivered Mitsubishi Power gas turbines of the M501F series to Saudi oil giant Aramco to support them in providing reliable and efficient power generation for their operations and to communities and industries across the Kingdom, the CEO revealed.

He added: “Our industry-leading turbines lead the world in reliability and utilize state-of-the-art technologies to optimize energy efficiency and reduce emissions, contributing to the Kingdom’s goal to provide uninterrupted power to communities around the nation.”

The company has established a service and repair center in Dammam for Hot Gas Path Parts components, as well as a rotor maintenance center, as part of its localization activities and to ensure closeness to customers.

“Our Saudi Arabia assembly facility is another testament to our ongoing expansion efforts in the Kingdom,” Al-Juraid continued.

Built on a facility measuring 17,200 sq. m., the Mitsubishi Power Saudi Arabia gas turbine blade and vane maintenance hub provide HGPP and rotor maintenance support for customers in the Gulf Cooperation Council region, as well as generating employment in Saudi Arabia, according to the CEO.

Al-Juraid set out his ambition to strengthen partnerships with private sector firms and government entities in Saudi Arabia, describing the approach as “multifaceted” and aligned with the Kingdom’s Vision 2030 objectives.

He explained that Mitsubishi Power works with “key energy stakeholders,” including the Ministry of Energy, Saudi Aramco, and SABIC, as well as Saudi Electricity Company , Saline Water Conversion Corporation, and all major projects led by PIF and independent power producers.

“In recent years, Saudi Arabia’s energy landscape has evolved rapidly,” Al-Juraid said.

The CEO added: “With our advanced, reliable and highly efficient power technology solutions and our growing localization initiatives, we aim to continue to partner with both the private and public sector organizations to support them in meeting their power needs and energy transition goals.”

Recognizing the crucial role of government entities in driving large-scale infrastructure projects, Al-Juraid said: “We are proud to engage with government entities in Saudi Arabia to align our initiatives with their strategic priorities. As a trusted long-term partner to the Kingdom, our commitment is demonstrated through ongoing support and services.”

He also highlighted the firm’s role in supporting Saudi Arabia’s Vision 2030, particularly in terms of local talent development and industrial capacity building.

“Mitsubishi Power launched a National Program in 2019 to prioritize the development of local talent and expand industrial facilities and capabilities in Dammam to serve Saudi Arabia and the wider region, in line with iktva ( Aramco’s In Kingdom Total Value Add program) and Saudi Vision 2030,” he explained.

Through iktva, Aramco is taking action to drive additional domestic value creation to support a rapidly changing economic environment and foster future prosperity.

Working with its suppliers, the oil giant captures value that produces long-term tangible benefits – quality jobs for a growing Saudi population, innovation, and diversification of industry, and increased global competitiveness.

Mitsubishi Power has deployed and continues to deploy training and development programs in Saudi Arabia and in Japan to equip Saudi youth with the latest knowledge and know-how when it comes to power generation.

“Today we have over 115 employees and achieved a 54 percent Saudization rate, but my goal is to keep increasing this percentage to provide more and more of our Saudi talent with the opportunity to grow their career with one of the best engineering and technology companies worldwide,” Al-Juraid added.

Furthermore, the CEO discussed Mitsubishi Power’s plans to leverage existing facilities in Dammam to support the growing demand for power generation solutions in Saudi Arabia.

“We aim to provide the best-in-class power solutions to address the Kingdom’s demand for energy, supporting Saudi’s circular carbon economy and cleaner power strategies,” he emphasized.

Al-Juraid addressed the firm’s commitment to contributing to the Kingdom’s economic diversification goals.

To bolster local workforce capabilities, the energy solutions company is providing training programs to equip local citizens with capabilities to develop skills to support the kingdom’s ambitious economic growth targets, according to the CEO.


World Bank looking to free up emergency funds for Lebanon

World Bank looking to free up emergency funds for Lebanon
Updated 07 October 2024
Follow

World Bank looking to free up emergency funds for Lebanon

World Bank looking to free up emergency funds for Lebanon

WASHINGTON: The World Bank is looking to free up emergency funds for Lebanon, potentially including up to $100 million through the use of special clauses in existing loan deals, its managing director of operations told Reuters.

The Washington-based development lender currently has $1.65 billion in loans to the country including a $250 million loan approved this week to help connect dispersed renewable energy projects in the country.

Amid fighting across southern Lebanon, the bank was currently discussing ways in which it could help support the economy, including through the use of so-called Contingent Emergency Response Component clauses.

“We can use our existing portfolio and free up some money for really critical, short-term liquidity needs,” Anna Bjerde said.

CERCs are present in around 600 of the bank’s existing projects, globally, and allow it to redirect funds that have yet to be disbursed, if requested to by a government, for example after a health or natural disaster, or during conflict.

Lebanon has yet to make such a request, Bjerde said.

After a year of exchanges of fire between Hezbollah and Israel mostly limited to the frontier region, the conflict has significantly escalated in Lebanon.

Lebanon’s government could choose to use an existing social protection program that was put in place during the COVID-19 pandemic that allows for financial support to be sent to individuals, Bjerde said.

“It has the benefit of being totally digital so you can reach people, plus it can be verified a bit... so we will also probably use that to top up the social safety net for those that are particularly affected.”

Up to 1 million people have been internally displaced in the country, she added: “So it’s important we focus on that.”

Lebanon’s Finance Ministry and Economy Ministry did not immediately respond when asked for comment.


PIF takes 40% stake in Selfridges in new partnership with Central Group

PIF takes 40% stake in Selfridges in new partnership with Central Group
Updated 07 October 2024
Follow

PIF takes 40% stake in Selfridges in new partnership with Central Group

PIF takes 40% stake in Selfridges in new partnership with Central Group

RIYADH: Saudi Arabia’s Public Investment Fund on Monday announced a strategic partnership with Central Group, a leading conglomerate in retail, real estate, and hospitality.

Under this partnership, PIF will acquire a 40 percent stake in both the operating and property companies of Selfridges Group, while Central Group will retain the remaining 60 percent. The agreement involves new investments from both parties aimed at enhancing Selfridges Group’s market position and supporting future growth, according to a PIF statement.

Turqi Al-Nowaiser, deputy governor and head of the International Investments Division at PIF, commented on the collaboration: “We are excited to partner with Central Group in Selfridges Group, one of Europe’s most iconic luxury department stores. This transaction will enable Selfridges Group to strengthen its status as a premier retail destination.”

This partnership follows PIF’s binding agreement to fully acquire Signa Group’s interest in Selfridges Group and is subject to the usual regulatory approvals.

The alliance aligns with PIF’s strategy of investing in key sectors globally and is built on a shared vision to unlock additional value within Selfridges Group.

By leveraging PIF’s investment expertise and Central Group’s industry leadership, the partnership aims to accelerate Selfridges Group's growth, solidifying its role as a major player in the European luxury retail market.

Selfridges Group operates 18 premier luxury department stores across three countries, including Selfridges in the UK, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland. Its flagship locations on London’s Oxford Street and Manchester’s Exchange Square are celebrated as cultural and retail landmarks.


Saudi Arabia adds 60 direct routes since launch of Air Connectivity Program

Saudi Arabia adds 60 direct routes since launch of Air Connectivity Program
Updated 07 October 2024
Follow

Saudi Arabia adds 60 direct routes since launch of Air Connectivity Program

Saudi Arabia adds 60 direct routes since launch of Air Connectivity Program

RIYADH: Saudi Arabia has introduced 60 new direct air routes since the launch of its national Air Connectivity Program, according to Majid Khan, CEO of the initiative.

Launched in 2021, the program has played a crucial role in enhancing tourism by expanding the Kingdom’s air links with global destinations, solidifying Saudi Arabia’s status as a prominent aviation hub.

Khan emphasized the strategic advantage of Saudi Arabia’s geographical location, which allows access to Europe, Asia, and Africa within an eight-hour flight.

He shared these insights during an interview with the Saudi Press Agency at the Routes World 2024 Exhibition and Conference in Bahrain.

From January to October of this year, 12 new foreign airlines established direct routes to Saudi Arabia—a significant achievement compared to the global average of two to four new routes per country.

Khan noted that the Air Connectivity Program has successfully attracted various carriers while strengthening existing routes, contributing to a rise in inbound tourism.

Rashed Al-Shammari, deputy CEO of commercial affairs for the Air Connectivity Program, highlighted the importance of the Routes World 2024 event in bringing together global aviation leaders to discuss operations and expand air routes.

The program aims to showcase Saudi Arabia’s unique tourist attractions, including the Red Sea, AlUla, Riyadh, and Diriyah, all of which have received recognition from UNESCO.

Al-Shammari also revealed that the program has held over 100 scheduled meetings with international aviation stakeholders at the event, focusing on negotiating new routes and enhancing existing ones. The goal is to establish direct connections to over 250 destinations and attract more than 150 million tourists to the Kingdom by 2030.

Ali Masrahi, CEO of Cluster2, which manages 22 regional and international airports across Saudi Arabia, including Abha, Taif, Tabuk, Arar, Jazan, and Al-Baha, reported significant growth in flights and passenger numbers last year, with increases ranging from 15 to 18 percent. Notably, the third quarter alone saw a 15 percent increase in flights and a 12 percent rise in passengers.


Closing Bell: Saudi TASI records 1.23% rise to close at 11,913

Closing Bell: Saudi TASI records 1.23% rise to close at 11,913
Updated 07 October 2024
Follow

Closing Bell: Saudi TASI records 1.23% rise to close at 11,913

Closing Bell: Saudi TASI records 1.23% rise to close at 11,913
  • MSCI Tadawul Index increased by 17.08 points, or 1.16%, to close at 1,492
  • Parallel market Nomu slipped, losing 6.79 points, or 0.03%, to close at 24,649.17

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 1.23 percent to reach 11,913.62 points on Monday mainly driven by a significant growth in Al Majed Oud Co.’s stock price alongside other top performers. 

The total trading turnover of the benchmark index was SR7.02 billion ($1.87 billion), as 185 of the listed stocks advanced, while 45 retreated. 

The MSCI Tadawul Index increased by 17.08 points, or 1.16 percent, to close at 1,492.  

The Kingdom’s parallel market Nomu slipped, losing 6.79 points, or 0.03 percent, to close at 24,649.17 points. This comes as 44 of the listed stocks advanced, while as many as 23 retreated. 

TASI also recorded one of the best intraday highs since June, reaching 1.5 percent growth. 

The index’s top performer, Al Majed Oud Co., saw a 30 percent increase in its share price to close at SR122.20, thanks to a strong financial performance during the first half of the year. 

The perfume manufacturer recorded SR513 million in sales, a 21 percent increase compared to the year before. The company also saw an 18.2 percent increase in net profit to reach SR119.5 million, according to a bourse filing. 

The firm attributed the growth in sales and net profit to a rise in the number of stores and the full presence of the Hajj season, unlike the same period of the previous year. 

Other top performers included Al-Baha Investment and Development Co. and Al-Omran Industrial Trading Co., with share prices rising by 10 percent to SR0.33 and 9.94 percent to SR39.25, respectively. 

Red Sea International Co. and Anaam International Holding Group also recorded positive trajectories today, with share prices rising by 9.88 percent to SR65.60 and 9.52 percent to SR1.38, respectively. 

Other Tadawul announcements include Almarai Co.’s acquisition of Hammoudeh Food Industries, a Jordanian dairy and cheese producer. 

Almarai Co. will acquire Hammoudeh through its subsidiary Teeba Investment for SR263 million, subject to adjustments. The move aims to strengthen Almarai’s presence in Jordan, aligning with its broader growth strategy of expanding within core markets. 

The acquisition will be financed through Almarai’s internal cash flows and remains contingent on meeting contractual conditions and receiving regulatory approvals in both Saudi Arabia and Jordan.

This transaction is expected to expand Almarai’s regional operations, enhance its product range, and leverage operational scale for increased growth and profitability. 

The Saudi dairy and cheese giant saw a 1.62 percent increase in its share price to close its Monday trading at SR56.50. 

Rasan Information Technology Co. has also announced a board recommendation to increase its capital from SR75.8 million to SR77.5 million by capitalizing retained earnings. 

This increase includes the issuance of 1.7 million ordinary shares allocated to an employee share program as part of a long-term incentive plan. 

The recommendation will be subject to approval by the upcoming Extraordinary General Assembly, the date of which will be announced after securing the required regulatory approvals. 

Rasan Information Technology Co. closed the day with a 5.17 percent increase in its share price to reach SR61. 


Saudi PIF’s Aseer Investment Co. inks deal with private sector to develop tourism project

Saudi PIF’s Aseer Investment Co. inks deal with private sector to develop tourism project
Updated 07 October 2024
Follow

Saudi PIF’s Aseer Investment Co. inks deal with private sector to develop tourism project

Saudi PIF’s Aseer Investment Co. inks deal with private sector to develop tourism project
  • Deal signed with Nimr Real Estate and the National Co. for Tourism, or Syahya, to propel the project
  • Partnership seeks to be model for multiple collaborations with private sector investors and create more regional job opportunities

RIYADH: Saudi Arabia’s Abha city has secured a new investment partnership to boost tourism by developing culturally rich dining and retail experiences. 

The Public Investment Fund’s firm Aseer Investment Co. has signed the deal with Nimr Real Estate and the National Co. for Tourism, or Syahya, to propel the project, the Saudi Press Agency reported. 

This aligns with the objectives of developing Abha, which will offer a range of benefits, including retail stores that reflect the cultural heritage of the Asir region. 

The partnership also seeks to be a model for multiple collaborations with private sector investors and create more regional job opportunities. 

Investments in the region are expected to create between 14,000 and 18,000 job prospects and contribute to up to 6 percent of the non-oil gross domestic product within 10 years, as outlined by the CEO of AIC, Osama Al-Othman, in February. 

Under the National Tourism Strategy, Saudi Arabia aims to attract 150 million visitors by 2030 and increase the sector’s contribution to the nation’s GDP from 6 percent to 10 percent.

The latest agreement seeks to empower the local community and develop and diversify the regional economy in line with PIF’s strategy. 

Speaking during a press conference on the Kingdom’s tourism plans that was held in July in Asir, Minister of Tourism Ahmed Al-Khateeb said the region enjoys moderate weather during the summer season and low temperatures compared to most cities in the world.

Visitors can enjoy various attractions, historic villages, local produce farms, delicious cuisine, and renowned locations set to provide rich cultural experiences, the minister said at the time.

Al-Khateeb said there is a significant demand and focus on the hospitality sector in the region and there are now 10 projects funded by the Tourism Development Fund, with an investment size of approximately SR1 billion ($266 million).

In February, during PIF’s second Private Sector Forum, Prince Turki bin Talal, chairman of AIC, unveiled the company’s ambitious plans as it embarked on its operational journey to make the area the number one tourist destination in the Kingdom.

Earlier this month, the Saudi Ministry of Tourism said the country achieved an 8.2 percent growth in spending by foreign visitors during the first half of 2024, compared to the same period in 2023. 

Total expenditures amounted to about SR92.6 billion, while the Kingdom posted a travel account surplus of around SR41.6 billion, the Saudi Press Agency reported at the time. 

The increase in spending by visitors to Saudi Arabia is part of significant developments in the tourism sector.

The Kingdom also topped the list of G20 countries in terms of growth in the number of international visitors and an increase in global tourism revenues during the first seven months of the year, compared to the same period in 2019, according to the UN World Tourism Organization.

This confirmed the effectiveness of the efforts made by the tourism system to achieve global leadership for the sector by applying best practices in travel and hospitality development, improving services and products, and continuous cooperation with all government entities.