Oil and gas industry needs $4.3tn in investments by 2030: IEF

Oil and gas industry needs $4.3tn in investments by 2030: IEF
According to the report, global upstream oil and gas capital expenditure is expected to grow by $24 billion this year, surpassing $600 billion for the first time in a decade. Shutterstock
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Updated 06 June 2024
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Oil and gas industry needs $4.3tn in investments by 2030: IEF

Oil and gas industry needs $4.3tn in investments by 2030: IEF

RIYADH: The oil and gas industry will need cumulative investments worth $4.3 trillion from 2025 to 2030 to meet growing demand and maintain market stability, according to an analysis. 

In its latest report, the International Energy Forum said that the increasing capital expenditure needs are based on an outlook that sees demand for oil rising from 103 million barrels per day in 2023 to 110 million bpd in 2030. 

“More investment in new oil and gas supply is needed to meet growing demand and maintain energy market stability, which is the foundation of global economic and social wellbeing,” said Joseph McMonigle, secretary general of the IEF. 

He added: “Well-supplied and stable energy markets are critical to making progress on climate because the alternative is high prices and volatility, which undermines public support for the transition as we have seen in the past two years.” 

An outlook on global upstream oil and gas capex

According to the report, global upstream oil and gas capital expenditure is expected to grow by $24 billion this year, surpassing $600 billion for the first time in a decade. 

IEF highlighted that annual investment must grow by another $135 billion, or 22 percent, to $738 billion by 2030 to ensure adequate supply.

“This estimate for 2030 is 15 percent higher than we assessed a year ago and 41 percent higher than assessed two years ago due primarily to rising costs and a stronger demand outlook,” said the energy think tank in the report, which was released in association with S&P Global. 

Roger Diwan, vice president at S&P Global Commodity Insights, said that expected production declines and future demand growth will require re-investing existing cash flows even as the transition proceeds.

According to the energy think tank, North America and Latin America will dominate the projected increase in upstream capital expenditure between now and 2030, with over 60 percent of the overall global investments set to happen in the region. 

“While North America is expected to be the largest driver of capex growth to 2030, Latin America will continue to play an increasingly significant role in non-OPEC (Organization of the Petroleum Exporting Countries) supply growth, particularly for conventional crude, with expansions planned for Brazil and Guyana,” said IEF. 

It added: “Around 2.2 million bpd in new or expanded conventional projects have been approved and are expected to be produced in Latin America by 2030 – this is more than a third of the total 6 million bpd that has been sanctioned globally.” 

The report also noted significant uncertainty around the trajectory for global oil and gas demand and the pace of the energy transition to net zero carbon dioxide emissions. 

“Base-case forecasts from consensus-leading organizations diverge by as much as 7 million bpd for 2030 and this gap widens to 27 million bpd when more ambitious climate scenarios are included,” said the energy think tank. 

Increased investment supports energy transition

According to IEF, a rise in capital expenditure in upstream oil and gas could support energy transition and ensure energy security. 

“A just, orderly, and equitable energy transition requires a foundation of energy security. The past two years have demonstrated the consequences of disorderly transitions: price shocks, shortages, disruptions, political backlash, bitter divisions, and conflict,” said the report. 

It added: “Ensuring adequate investment levels can help provide stability and enable a just transition. But it will require the market to remain nimble and flexible to overcome potential hurdles and adapt to new realities.” 

IEF, however, highlighted that global conventional crude production would fall by over 20 percent by 2035 without additional drilling. 

The energy think tank added that investments in the oil and gas sector made this decade will impact production levels well into the next decade and beyond. 

“Continued upstream investment is needed first to offset expected production declines and then to meet future demand growth. Without additional drilling, we estimate that conventional non-OPEC production would decline by 9 million bpdby 2030 and 14 million bpd by 2035,” said IEF. 

It added: “The decline rates for non-conventional crude, including US shale, are significantly steeper and would see more than 80 percent decline in the next decade.” 

The analysis also revealed that oil and gas companies worldwide have increased their spending to reduce carbon dioxide emissions. 

“The upstream sector accounts for around 60 percent of the oil and gas industry’s greenhouse gas emissions. Companies are increasingly focused on reducing Scope 1 and 2 emissions in their upstream operations to meet regulatory requirements, investor expectations, and environmental goals,” said the report. 

Scope 1 emissions are “direct emissions” from sources owned or controlled by the company, while Scope 2 denotes emissions released into the atmosphere from the use of purchased energy. 

These are also known as indirect emissions, as they are generated at another facility, such as a power station.

According to the report, the increased focus on upstream decarbonization has also contributed to the upwardly revised capex forecast. 

IEF also highlighted that energy companies’ strong profits in the past couple of years have helped them invest in capital expenditures directly from operating cash flow, ultimately reducing reliance on debt financing. 

“This is a notable change from COVID and pre-COVID years when the primary constraint on investment was capital availability due to weak cash flow, reliance on external capital, and depressed investor appetite,” the release added. 

In an additional report released in May, IEF said that to meet widespread electric vehicle targets, the world needs to mine more than double the amount of copper ever excavated in human history. 

The analysis noted that electrifying the global vehicle fleet would necessitate the opening of 55 percent more new copper mines by 2035 – and this expansion needs to be encouraged by governments.


Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

Saudi Arabia’s NEOM partners with Paradromics to transform neurological care
Updated 7 sec ago
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Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

JEDDAH: Saudi Arabia’s $500 billion NEOM project is making a major investment in Paradromics, a pioneering company in brain-computer interface technology, to drive healthcare innovations.

The partnership, announced on Feb. 12, with the American firm aims to advance BCI therapies focused on restoring neurological function for individuals with impairments.

As part of the agreement, NEOM will establish a Brain-Computer Interface Center of Excellence. This center will lead groundbreaking clinical research and become a leading hub for BCI-based healthcare in the MENA region and beyond.

This investment aligns with Saudi Arabia’s Health Sector Transformation Program, launched in 2021, which seeks to create a more efficient, integrated healthcare system.

The program prioritizes innovation, financial sustainability, disease prevention, and broader access to healthcare services. It also focuses on expanding e-health services and digital solutions to improve care quality and meet international standards.

Led by the NEOM Investment Fund, the partnership will accelerate the development of high-data rate BCI technology, aimed at enhancing movement, communication, and cognitive functions for individuals affected by neurological conditions.

Matt Angle, founder and CEO of Paradromics said that the collaboration marks a pivotal moment for Paradromics and the broader BCI industry.

“NEOM and Paradromics both have expansive visions for the future of mental health that are highly aligned. Working together, we can accelerate the rate of innovation in BCI and expand access to impactful BCI-based therapies,” Angle said.

Majid Mufti, CEO of NEOM Investment Fund, said that they “at NIF are committed to enabling NEOM’s bold vision of redefining the future of healthcare by investing in transformative technologies that push boundaries and address humanity’s toughest challenges.”

“Paradromics was selected as a strategic partner for their groundbreaking advancements in BCIs and our shared mission of shaping industries, solving critical challenges and driving meaningful impact.” Mufti added.

Mahmoud Al-Yamany, head of NEOM’s health and well-being sector, stated that the partnership with Paradromics marks a significant advancement in addressing the critical needs of individuals with motor paralysis, speech impairments, and other debilitating conditions.


Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030
Updated 27 min 46 sec ago
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Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

JEDDAH: Saudi low-cost carrier flynas expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets, as it expands its fleet to meet growth targets. 

The announcement coincided with a visit from Airbus senior management to flynas’ headquarters in Riyadh. 

The airline aims to operate over 160 aircraft by 2030, with its 280-plane order — worth more than SR161 billion ($43 billion) — making it the largest holder of single-aisle aircraft purchase orders in the Middle East. 

This comes amid a growing backlog of aircraft orders in the aviation industry, with manufacturers like Boeing reducing delivery schedules for 2025, impacting Gulf carriers that have had to delay their launches.

Dubai-based Emirates has been hit hard as Boeing’s 777X faces major delays, with deliveries now expected no sooner than 2027. 

“We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry,” said Bander Al-Muhanna, CEO and managing director of flynas. 

He noted that flynas’ partnership with Airbus began at its inception and strengthened in 2016 with an order for 120 aircraft. The collaboration reached a new level in 2024 with an agreement to purchase 160 Airbus A320 and A330 wide-body jets. 

The expansion aligns with Saudi Arabia’s National Civil Aviation Strategy, which aims to connect the Kingdom with 250 international destinations, accommodate 330 million passengers annually, and attract 150 million tourists by 2030. 

The initiative also supports the Pilgrims Experience Program, designed to facilitate access to the Two Holy Mosques, the company said in a press release. 

The Airbus delegation’s visit also marked flynas receiving a new Airbus A320neo last week — the first delivery of the year — bringing its fleet of the models to 54 aircraft. 

During their visit, Airbus executives toured flynas’ headquarters and reviewed the airline’s latest aviation innovations. They also met with senior officials from the Saudi airline to discuss ways to strengthen their long-term partnership. 

Saudi Arabia has been pushing to expand its aviation sector under Vision 2030, with national carriers ramping up fleet expansions to meet the Kingdom’s growing travel and tourism targets. 


Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement

Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement
Updated 57 min 21 sec ago
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Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement

Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement
  • Facility will allow HBL MfB to share 50 percent of risk on microfinance loan portfolio of up to $80 million with IFC on an unfunded basis
  • Collaboration aims to enhance access to finance for smallholder farmers, microenterprises across the country, with focus on women

KARACHI: HBL Microfinance Bank (HBL MfB) has signed a Risk Sharing Agreement (RSA) with the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.
The facility, which is supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), will allow HBL MfB to share 50 percent of the risk on its microfinance loan portfolio of up to $80 million with IFC on an unfunded basis. The collaboration aims to enhance access to finance for smallholder farmers and microenterprises across the country, with a strong focus on women entrepreneurs.
“This RSA is another milestone, reinforcing the Bank’s legacy of innovation and leadership in addressing the evolving financial needs of underserved communities,” HBL said in a statement. 
“By being the first microfinance bank to establish an agreement on such a scale, HBL MfB is not only pushing boundaries but also redefining industry standards, ensuring that microfinance remains a catalyst for empowerment and economic growth.”
HBL said the RSA exemplified the bank’s approach toward leveraging strategic partnerships to strengthen financial resilience, expand lending capabilities, and maintain sustainable growth.
“This partnership with IFC is a testament to our commitment to financial inclusion. The facility serves as a replicable model for strategic partnerships that mitigate market challenges while driving sustainable development,” Amir Khan, President and CEO HBL Microfinance Bank, said in a statement.
“By pioneering this Risk Sharing Facility in the microfinance sector, we are ensuring that underserved segments of the society — especially small business owners and farmers, particularly women, have access to the capital they need to thrive. We are thankful to IFC for their trust in us and look forward to the growth and progress it will bring for underserved Pakistanis.”
Momina Aijazuddin, Regional Head of Financial Institutions Group at IFC, said boosting access to finance, especially for smallholder farmers, small businesses and women, could be a “gamechanger” in Pakistan. 
“With this in mind, IFC is excited to support this pioneering risk sharing facility which aims to de-risk HBL MfB’s on-lending activity to its microfinance clients and support critical growth opportunities in agriculture, entrepreneurship, and women’s empowerment,” Aijazuddin said. 
“This agreement will accelerate financial inclusion, and further HBL Microfinance Bank’s mission of creating a more inclusive and resilient financial ecosystem in Pakistan.”
Despite challenging macroeconomic conditions, microfinance banks (MFBs) have continued to expand their outreach to the low-income population of Pakistan. Although MFBs account for only 1.3 percent of total financial sector assets, they have a broad customer base. Over the past five years, MFBs’ total assets grew by an average of 19.1 percent annually, according to government data. 


Saudi construction sector issues 3,800 new licenses amid regulatory reforms 

Saudi construction sector issues 3,800 new licenses amid regulatory reforms 
Updated 18 min 47 sec ago
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Saudi construction sector issues 3,800 new licenses amid regulatory reforms 

Saudi construction sector issues 3,800 new licenses amid regulatory reforms 

RIYADH: Saudi Arabia’s construction sector saw significant growth in 2024, with 3,800 new licenses added in just one year to bring the total to 8,900, according to a top official. 

During a panel discussion at the Public Investment Fund Private Sector Forum in Riyadh, Fahad Al-Hashem, assistant deputy minister at the Ministry of Investment, stated that the surge reflects increasing foreign investment and regulatory reforms aimed at streamlining market entry. 

His comments came as figures released by the Ministry of Investment showed a 59 percent annual increase in licenses for construction activity in the fourth quarter of 2024 alone.

The data also showed that 14,303 permits were awarded across the entire economy last year, excluding those related to the anti-concealment law. 

“In the number of licenses, we had 8,900 construction companies licensed in the Kingdom, last year alone we had 3,800 companies licensed in the Kingdom,” Al-Hashem stated.

The deputy minister highlighted the broader impact of these reforms, noting that real estate developers also saw a rise in licenses — adding 244 in 2024 to the 446 already issued. 

 “This is just to showcase the uptake from foreign investors into the market, and we hope to see an increase with these upcoming reforms,” he said. 

Al-Hashem emphasized the Kingdom’s efforts to enhance its regulatory framework, with 800 improvements identified since the launch of Vision 2030, 80 percent of which have already been implemented. 

One major shift was the replacement of the licensing regime with a registration system to simplify market entry. 

“We are working continuously with our colleagues across the government to really reduce the timeframe from being really interested to entering the market to being fully operational,” he added. 

Addressing cost challenges in the sector, Al-Hashem pointed to initiatives such as the establishment of an international contractor office within the ministry. 

“We collaborate with stakeholders to streamline such service-wide journey into the market, to ensure ample supply comes into the market, in order to also add competition and ensure that project owners and investors have good returns with their capital,” he said. 

He underscored the government’s commitment to fostering a dynamic and competitive market, stating: “I can go on and on and on about many examples that we’re seeking to liberate, add supply into the market, and constantly develop value chains to ensure that the Kingdom, as it has high ambitions, has the most conducive, the most dynamic, and most competitive market out there.” 

Saud Al-Sulaimani, country head of Saudi Arabia at JLL, highlighted the dual nature of the Kingdom’s construction boom. 

“What makes the Saudi market interesting is that there are two things happening at the same time: the redevelopment of projects as well as the development of new cities and projects,” he said.

Construction leading the way

The figures from the Ministry of Investment showed that 1,358 licenses were issued to the construction sector in the fourth quarter of 2024 – making it the leading recipient of such permits.

Manufacturing ranked second with 676 licenses, representing a 39 percent annual increase during the quarter. 

Wholesale and retail trade followed with 527 licenses, posting a188 percent surge. Together, these three sectors accounted for 55.7 percent of total approvals. 

The ministry’s data also showed that accommodation and food services, along with the information and communication sector, each received 390 approvals, collectively making up 17 percent of total licenses. 

Professional, scientific, and technical activities secured 364 licenses, accounting for an 8 percent share. 

The Kingdom’s cumulative Gross Fixed Capital Formation and foreign direct investment exceeded targets for 2021–2024, with GFCF reaching SR3.83 trillion by the third quarter of 2024 — 19 percent above the SR3.22 trillion goal, according to the ministry. 

Likewise, cumulative FDI inflows totaled SR391 billion including the Aramco deal, exceeding the SR295 billion target by 33 percent. 

These achievements highlight the Kingdom’s success in fostering a dynamic investment climate, driven by regulatory reforms, enhanced investor confidence, and key initiatives under Vision 2030, which aims to position Saudi Arabia as a premier global investment hub.

Saudi Arabia also ranked first in the Middle East and North Africa region for total venture investment and topped global rankings for ease of starting a business, according to the ministry’s report. 

Regional HQ program continues to thrive

The Ministry of Investment continued its efforts to enhance the business environment, issuing 46 new licenses for regional headquarters, further solidifying the Kingdom’s position as a hub for multinational corporations. 

The regional headquarters program, a key component of this strategy, incentivizes multinational firms to establish their bases in Saudi Arabia by offering regulatory advantages, tax benefits, and streamlined business operations. 

This initiative not only supports the Kingdom’s economic diversification goals but also drives employment, knowledge transfer, and investment inflows across various sectors. 


PIF-backed ewpartners leads $48m investment in Valuable Capital to propel fintech expansion

PIF-backed ewpartners leads $48m investment in Valuable Capital to propel fintech expansion
Updated 13 February 2025
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PIF-backed ewpartners leads $48m investment in Valuable Capital to propel fintech expansion

PIF-backed ewpartners leads $48m investment in Valuable Capital to propel fintech expansion

RIYADH: A $48 million investment in Valuable Capital, led by Public Investment Fund-backed ewpartners, will soon expand the Saudi fintech sector, revealed a top official from the funding firm.

Speaking to Arab News on the sidelines of the PIF Private Sector Forum taking place from Feb. 12-13 in Riyadh, co-founder and Managing Partner of ewpartners Jessica Wong explained that the amount would be utilized in the company’s initial public offering route. 

The investment aligns with the Kingdom’s Vision 2030 goals of advancing fintech development and economic diversification, with the industry expected to contribute 4.4 percent to the Kingdom’s gross domestic product, according to a statement. 

Valuable Capital Financial Co., a subsidiary of Hong Kong-based financial institution Valuable Capital Group Ltd, received a license in 2022 from Saudi Arabia’s Capital Market Authority to provide custody, advice, and dealing services in the Kingdom. 

“We invested in this company three and half years ago, and this time, we continue. We launch a new product, targeting $1 billion, and we continue to invest in this company and kick off their IPO procedure,” Wong said. 

“It will be in the company’s IPO route to support the company, not just kick off the IPO procedure in the target market, but also for further expansion in the GCC (Gulf Cooperation Council) region,” she added. 

The co-founder explained the importance of PIF’s support in enabling their role in the local market, citing how their initial partnership laid the foundation for future investments.

“The reason we will be able to play a significant role and also to focus on the most critical sectors here in the local market is because, you know, five years ago, PIF is playing the role as our anchor LP (limited partner) of our first regional focus, a fund here in the GCC with a $400 million and through the fund, we invest a portfolio company like a Valuable Capital,” Wong said.

“Because our performance is to exceed our expectation, we will be able to launch our second fund, which is also targeting $1 billion,” she added. 

During the interview, the managing partner also tackled the rise of fintech in the Kingdom.

“Seven years ago, when we first launched this platform to serve the local growth and expansion, actually we identify ourselves as the co-builder of the local ecosystem, and we have invested across different sectors like digital infrastructure, digital enablement and also cross-border service and beyond,” Wong said.

“Fintech, in our eyes, is one of the most important sectors to support the local ecosystem growth in a more sustainable and more healthy way,” she added.

“This is one of the perfect examples how, as a one of the PIF portfolio, we invest in a particular sector, double the commitment and support its fast growth and also leveraging more FDI (foreign direct investment) and more know-how to support the company, play a bigger role in the global market and build themselves as another successful story,” Wong said.

The managing director used the interview to shed light on some updates regarding the KSA-Sino Logistics Special Economic Zone. 

“This is one of the projects we have been working on for more than five years. Last October, we were able to sign the MOU (memorandum of understanding) together with our strategic partner, which is King Salman International Airport. So, through this framework of our cooperation, we are working very closely with KSIA, the company itself, to make sure that we will be able to build a platform not just for ewpartners portfolio but also for all the ecosystem players, those who are looking to enter Saudi market as a hub or for their global expansion,” she said.

“The pressure is to come from (a) different angle. One of the biggest motivations for us to continue our work and put together our effort is because there is a huge demand here in the market,” the managing partner added.

Wong also said: “So, our project inside the new expansion of the airport will be one of their top choices, and we’ve already received a lot of requests to further discuss when we can launch and upper running service them, and hopefully, we will start the construction this year.”

Now in its third year, the forum — which united more than 90 PIF-backed companies — aims to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.