Oil Updates – prices up over 1% on US hurricane impact concerns

Oil Updates – prices up over 1% on US hurricane impact concerns
US oil stockpiles rose across the board last week as crude imports grew and exports dipped, the Energy Information Administration said. Shutterstock
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Updated 12 September 2024
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Oil Updates – prices up over 1% on US hurricane impact concerns

Oil Updates – prices up over 1% on US hurricane impact concerns
  • Brent crude futures for November were up $1, or 1.4%, at $71.61 a barrel
  • US crude futures for October were up 92 cents, or 1.4%, at $68.23 a barrel

SINGAPORE: Oil prices rose more than 1 percent on Thursday, spurred by concerns of Hurricane Francine impacting output in the US, the world’s biggest crude producer, though worries of lower demand capped gains.

Brent crude futures for November were up $1, or 1.4 percent at $71.61 a barrel at 9:32 a.m. Saudi time. US crude futures for October were up 92 cents, or 1.4 percent, at $68.23 a barrel.

Both contracts rose by more than 2 percent in the previous session as offshore platforms in the US Gulf of Mexico were shut and refinery operations on the coast disrupted by Hurricane Francine’s landfall in southern Louisiana on Wednesday.

“Both benchmarks, WTI and Brent, seem to have found some ground amid worries of disrupted US oil supplies,” said Priyanka Sachdeva, senior market analyst at Singapore-based brokerage Phillip Nova.

“The region accounts for about 15 percent of US oil production, with any disruptions in production likely to tighten supplies in the near term.”

But with the storm set to eventually dissipate after making landfall, the oil market’s attention again turned to lower demand.

US oil stockpiles rose across the board last week as crude imports grew and exports dipped, the Energy Information Administration said on Wednesday.

The data also showed gasoline demand fell to its lowest since May at the same time distillate fuel demand dropped, with refinery runs also declining. The US is the world’s biggest oil consumer.

Despite worries of Hurricane Francine impacting supply, the medium-term trend remains bearish for WTI crude, supported by weak demand from China and “growth scare concerns” in the US, said Kelvin Wong, senior market analyst at OANDA.

Earlier in the week, OPEC cut its forecast for global oil demand growth in 2024 and also trimmed its expectation for next year, its second consecutive downward revision.

“Oil traders are now looking ahead to International Energy Agency’s monthly market report later this week for any signs of a weakening demand outlook,” ANZ Research said in a note on Thursday. 


Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir

 Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir
Updated 10 sec ago
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Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir

 Green practices in logistics offer profit, efficiency amid disruptions, says Al-Jubeir

RIYADH: Saudi Arabia’s commitment to developing an environmentally friendly logistics sector was highlighted by Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir during a fireside chat at the Global Logistics Forum in Riyadh.

Al-Jubeir outlined the substantial advantages of adopting green practices in logistics, stating, “Being green is profitable. Being environmentally friendly can be extremely lucrative. There’s often confusion stemming from the emotional discussions surrounding climate change; people conflate these emotions with reality. The reality is that investing in renewable energy is highly profitable.”

He also pointed out the efficiency of alternative energy sources, noting, “Ships powered by hydrogen and other alternative fuels are more efficient.” He acknowledged the growing pressure on countries to embrace sustainable practices but reassured that the shift toward environmental responsibility is beneficial because “it pays.”

According to a report by McKinsey & Co., the global green logistics industry is projected to grow significantly from $50 billion in 2025—about 2 percent of total logistics spending—to $350 billion by 2030, representing 15 percent of the broader sector.

A report from SAP, a German multinational software company, further supports this trend, indicating that green logistics enhances long-term profitability. “While initial investments are necessary to realize the benefits of green logistics, the long-term gains far exceed the costs,” the report stated.

Al-Jubeir concluded by underscoring the importance of efficiency in the logistics sector, emphasizing its critical role in achieving success in a competitive global marketplace.

“Efficiency is critical. The saying goes, ‘the future belongs to the efficient,’” stated Al-Jubeir, emphasizing that a company's ability to produce, package, transport, and market goods efficiently directly influences its sales performance.

He underscored the importance of optimizing every aspect of the logistics process, from the efficiency of ships and ports to the speed of loading and unloading containers and delivering goods to consumers. “Companies will become more efficient because that drives profit,” he added, linking operational efficiency to both commercial success and environmental sustainability.

Al-Jubeir also highlighted a global trend toward increased integration. While acknowledging potential conflicts at the micro level between specific countries or sectors, he stressed that the overarching historical trajectory is one of growing interconnectedness. “The world is more connected today than it ever has been, and it will continue to be as we move forward,” he asserted.

Despite the turbulence accompanying major transitions, such as the current shift from the information age to a post-information era, he expressed confidence in humanity’s capacity to adapt and solve problems. He pointed out that, throughout history, societies have consistently managed to progress despite disagreements and challenges.

Moreover, Al-Jubeir emphasized the importance of embracing diversity and cooperation in a multicultural world. He argued that shared universal values should foster mutual respect rather than the imposition of values on others.

In discussions surrounding trade and multilateral issues, he noted that disagreements often arise from a focus on competition rather than collaboration. “We need to focus on the problem and find solutions,” he said, expressing optimism that with the right technology, capital, and collective effort, the global community is well-equipped to tackle its challenges.

In another panel titled “The Resilience of Logistics Services in the Face of Disruption in the Red Sea,” top officials addressed the impacts of instability in one of the world’s most crucial maritime routes.

Rumaih Al-Rumaih, vice minister of transport and logistic services, underscored the importance of resilience in global trade routes, especially in light of recent disruptions in the Red Sea.

“The Red Sea is one of the main arteries for global trade,” Al-Rumaih explained, noting that disruptions in this vital route can have significant local, regional, and global repercussions. He highlighted the rise in maritime freight costs and the extended travel times as vessels are forced to reroute around the Cape of Good Hope, which can add up to 15 days to their journeys.

Reflecting on lessons learned from the COVID-19 pandemic, Al-Rumaih stated: “We should not take things for granted,” emphasizing that the Kingdom is now better equipped to handle such disruptions. He also discussed Saudi Arabia’s initiatives to diversify its logistics and transport networks to reduce reliance on any single route.

He pointed to the increased utilization of Gulf ports during the Red Sea disruptions and emphasized the Kingdom’s robust road and rail connectivity, which has played a crucial role in mitigating the impact of these challenges.

Osama Rabiee, chairman and managing director of the Suez Canal Authority, echoed concerns regarding significant disruptions faced by the canal. He reported that delays in shipments and rerouted vessels have caused Suez Canal revenues to drop from $9.4 billion last year to $7.2 billion.

Rabiee also highlighted the environmental implications, noting that ships traveling longer routes burn more fuel, which contributes to higher emissions. Despite these challenges, he affirmed the ongoing safety and reliability of the Suez Canal, stating, “The Suez Canal remains the safest and shortest route for global maritime traffic.”

Bud Darr, executive vice president of Maritime Policy and Government Affairs at MSC Group, addressed the broader challenges facing the shipping industry due to regional instability. “I don’t think anyone could say we’re on a pathway towards de-escalation in the region,” Darr remarked, emphasizing that the safety of seafarers influenced MSC’s decision to reroute vessels.

He pointed out the environmental and operational costs associated with longer routes, including increased emissions and impacts on service reliability and capacity.

Darr stressed the importance of building resilience into the supply chain, revealing that MSC had invested in additional capacity even before the current disruptions, enabling the company to adapt more effectively. “It’s not about the bare minimum; it’s about being ready for the next Black Swan event,” he added.


Saudi Arabia invests over $267bn in logistics sector to become global hub by 2030

Saudi Arabia invests over $267bn in logistics sector to become global hub by 2030
Updated 3 min 48 sec ago
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Saudi Arabia invests over $267bn in logistics sector to become global hub by 2030

Saudi Arabia invests over $267bn in logistics sector to become global hub by 2030
  • Saudi Minister of Transport and Logistic Services Saleh bin Nasser Al-Jasser said that SR200 billion of the total amount has already been deployed
  • Al-Jasser said there is no better time to hold this forum as the global logistics industry stands at a critical juncture

RIYADH: Saudi Arabia has allocated over SR1 trillion ($267 billion) for its logistic sector, reflecting its ambition to become a global hub in the sector by 2030, according to a senior official.

Speaking at the Inaugural Global Logistic Forum 2024, which kicked off on Oct. 13 in Riyadh, Saudi Minister of Transport and Logistic Services Saleh bin Nasser Al-Jasser said that SR200 billion of the total amount has already been deployed.

“These investments have translated into leapfrogs in the Saudi logistics sector, leading us to rise in global rankings, jumping 17 ranks in the Logistics Performance Index issued by the World Bank and 14 places in the Global Connectivity Index of the International Air Transport Association,” he said.

The country’s plan for its transport and logistics, launched by Crown Prince Mohammed bin Salman, aims to strengthen Saudi Arabia’s position as a global logistics hub connecting three continents.

This initiative, part of Saudi Arabia’s broader Vision 2030 program, focuses on modernizing transportation systems, enhancing integration within the logistics network, and supporting the Kingdom’s overall development process.

In his speech, Al-Jasser said there is no better time to hold this forum as the global logistics industry stands at a critical juncture.

“Current disruptions highlight the fundamental needs to ensure safety and security of the supply chain and the seamless functioning of the backbone of global commerce. So, economies thrive, goods get delivered and people are connected,” he said.

The minister stated that throughout his life, he has seen how logistics are essential for delivering his favorite cup of coffee to his home and for transporting vaccines to remote areas that would otherwise be unreachable.

Al-Jasser said that over the next two days, the forum will together address the challenges that face the sector and shape sustainable future that promote prosperity for everyone.

“Where could it be better to hold the global logistics for than at the crossroads of Asia, Europe, Africa, the heart of the global connectivity, where more than 40 percent of the world’s gross domestic product is reached within six hours,” he said.

The minister pointed out that Saudi Arabia, centuries ago, stood at the crossroads of some of the most data trade networks in history, including the Incense Road, the Spice Road and sea route of the Silk Road.

“These routes, which covered continents, carried not only goods, but ideas and cultures that saved that shape civilizations, and now, once again, we are at the forefront of global trade through cutting edge infrastructure, such as King Salman International Airport, state-of-the-art seaports and rail network,” Al-Jasser said.

He further noted that the Kingdom is making huge strides in sustainability through the Saudi Green Initiative.

“Last year alone, using the Saudi rail network, the equivalent of 1,000,000 truck journeys were eliminated from our roads, drastically reducing carbon emissions,”

He added that with the advancements in technologies such as AI, blockchain, and smart infrastructure, the world is reforming the supply chain, reducing cost, and increasing speed and protecting the environment.

Following Al-Jasser’s speech, a number of memorandums were signed including a maritime connectivity cooperation agreement between the Kingdom’s Transport General Authority and the Egyptian Ministry of Transport.

King Salman International Airport Development Co. and ewpartners also signed a MoU for collaboration in KSA-Sino Logistics Zone. Moreover, The Mediterranean Shipping Co. and King Abdullah Port signed contract for temperature- controlled warehouse construction at King Abdullah Port.

Matarat holding and the transport ministry inked an agreement for 24 seats for the Custodian of the Two Holy Mosques Scholarship Program, Additionally, ALTANFEETHI and the ministry of Transport and Logistic Services penned an agreement for eight seats in the program, while Saudi Arabia Railways and the ministry signed a similar agreement for 30 seats.

The Saudi Logistics Academy and the Ministry of Human Resources and Social Development are recognizing an initiative to train 7,800 people in transport and logistics services in 60 different training programs and diplomas.

The GLF 2024, organized by the Ministry of Transport and Logistic Services and held under the patronage of King Salman, aims to redefine the global landscape of trade and supply chains.

By bringing together ecosystem partners at the King Abdullah Financial District in Riyadh, this two-day forum seeks to enhance efficiency, resilience, sustainability, and profitability, ultimately fostering prosperity in an increasingly interconnected world.

Considering current challenges such as international tensions, economic instability, complex supply chains, and the growing effects of climate change, the logistics sector is at a pivotal moment.

The forum aims to boost international collaboration and drive growth in the logistics sector by highlighting the latest technologies and innovative solutions.

The event will also launch several initiatives to strengthen global communication and contribute to developing more efficient, sustainable, and flexible logistics services.

This first edition of the Global Logistics Forum is a pivotal event for the Ministry of Transport and Logistics Services, as it aims to revolutionize global trade and supply chains by enhancing efficiency and profitability. 

Coinciding with the event, Agility, a global leader in supply chain services, announced plans for the final phase of its expansion at the Agility Logistics Parks in Riyadh,

The SR250 million project will add 100,000 sq. m. of Class A warehousing, bringing the total to 551,368 sq. m., with the first phase set to open in Q1 of 2025, creating nearly 300 Saudi jobs.

Agility is also investing SR611 million to build a third complex near Jeddah, as per a press release.

Michel Saab, global CEO of Agility Logistics Parks, said their expansion in Riyadh is not just about increasing the company’s operational capacity as it also represents a substantial contribution to the growth of the logistics market in Saudi Arabia and will allow global firms to invest in their growth in the Kingdom.

“By building world-class warehousing, we are able to provide critical infrastructure that is helping to make the Kingdom a global and regional logistics hub.” he said.


Saudi Arabia to appoint private operators to manage 4 airports soon, say Al-Falih

Saudi Arabia to appoint private operators to manage 4 airports soon, say Al-Falih
Updated 13 October 2024
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Saudi Arabia to appoint private operators to manage 4 airports soon, say Al-Falih

Saudi Arabia to appoint private operators to manage 4 airports soon, say Al-Falih

RIYADH: Saudi Arabia is strengthening the role of private entities in the logistics and transport sector through various initiatives, including a new investment law, according to a top minister.

At the Global Logistics Forum in Riyadh, Saudi Investment Minister Khalid Al-Falih announced that the government plans to appoint private operators to manage four airports in the Kingdom in the coming months.

Enhancing the operations of seaports and airports is vital for Saudi Arabia as it aims to establish itself as a strategic regional hub and logistics gateway spanning three continents. The National Logistics Strategy seeks to boost the sector’s contribution to the Kingdom’s gross domestic product from 6 percent to 10 percent by 2030.

“The government is moving away from direct business involvement. Empowering and enabling the private sector is essential,” Al-Falih stated. He highlighted that the Madinah airport, the Kingdom’s most efficient, is managed by a private operator under a long-term concession, while King Abdullah Port, built with no government capital expenditure, is also privately operated.

“In the coming months and years, you will see continued privatization, with four airports entering the market. This is just the beginning,” he added.

Al-Falih emphasized that Saudi Arabia’s entrepreneurial landscape is favorable, and the new investment law is attracting significant investments in logistics and transport. In August, the Kingdom approved an updated investment law aimed at enhancing foreign direct investment.

The law includes stronger protections for investors, ensuring adherence to the rule of law, fair treatment, property rights, robust intellectual property safeguards, and streamlined fund transfers.

Al-Falih emphasized the importance of establishing a regionalized supply chain within the Gulf Cooperation Council. He noted that countries like Saudi Arabia, with their strategic geographical position, have significant opportunities in the transport and logistics sector.

“What is essential for us in the region is the regionalization of global supply chains. While globalization has benefitted humanity and the global economy, it is evolving toward a multi-hub regional logistics and transport system,” Al-Falih stated.

He continued: “The Middle East is at the forefront of developing its logistics and transport sector. We sit at the intersection of north-south and east-west routes, and we are actively creating our own regional logistics hub. We’re not starting from scratch; I anticipate rapid progress.”

Al-Falih also underscored the need to expand shipping ports and lanes to alleviate pressure on existing facilities. “Currently, 30 ports handle 80 percent of maritime traffic, which is too much concentration. This will inevitably change,” he concluded.

The sustainability factor

Talking about sustainability, Al-Falih said that Saudi Arabia consider it as a golden opportunity to develop green energy sources like green hydrogen, and green ammonia to reduce emissions in the sector, which contributes 10 percent to the overall emissions happening globally. 

“It is not easy to switch to alternative fuels. But that we must do. From a climate standpoint, and given everybody’s commitment to net zero in the next few decades. The Kingdom, we see it as a huge opportunity. Many people assume we consider it a threat. We see these fuels of the future, whether it is green ammonia, blue ammonia, methanol into shipping as a huge opportunity for the Kingdom and countries in the region,” added Al-Falih. 

UAE Minister of Energy and Infrastructure Suhail Al-Mazrouei expressed concerns about the potential pollution from expanding shipping lines, emphasizing the need for alternative connectivity solutions.

“The challenges ahead are significant. We cannot simply expand shipping lines or increase the number of ships, as pollution will become a major issue. We need to explore other means of connectivity,” he stated.

In the same panel, Saeed bin Hamoud Al-Maawali, Oman’s minister of transport, communications, and information technology, highlighted the substantial opportunities in Oman’s renewable energy sector. “Oman is poised to benefit greatly from green initiatives. We have just announced our first LNG terminal for bunkering, and there are vast opportunities for producing green hydrogen due to our favorable natural conditions, including strong wind and solar resources, along with ample available land,” said Al-Maawali.

He further noted that Oman aims to play a pivotal role in the transport and logistics sector, acting as a trade facilitator between East Africa and India.

The vitality of technology

During the session, Al-Falih said that technology is going to play a crucial role in modernizing the transport and logistics sector. 

According to the investment minister, e-commerce platforms like Amazon, which uses logistics as a key part of their operations have become one of the biggest companies in the world by leveraging technology wisely. 

“The trend is digitalization, data processing and AI (artificial intelligence), and they are huge enablers. The other trend is e-commerce, and we have seen with technology, how disruptive that has been,” said Al-Falih. 

Al-Mazrouei also echoed similar views and said that technologies like blockchain are crucial to enhance operations in the transport and logistics sector. 

“The future is going to be in the blockchain technology; how can we speed up and how can we eliminate certain processes between the first buyer of a good and the end consumer,” said Al-Mazrouei. 

The UAE minister added that the logistics and transport industry should be modernized to meet future demands, and it demands huge capital. 

The future outlook

During the panel, Saudi Arabia Transport Minister Saleh Al-Jasser said that the Kingdom is steadily pursuing its goals outlined in Vision 2030, and is on a path to become a global logistics hub. 

“Despite the current challenges in the region, I never been as optimistic about the future of logistics in Saudi Arabia and the region,” said Al-Jasser. 


Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16
Updated 13 October 2024
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Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16
  • Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues
  • Saudi Arabia took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions

RIYADH: Global discussions on environmental challenges took center stage at the 79th UN General Assembly, with Saudi Arabia’s Ministry of Environment, Water, and Agriculture spearheading talks. 

In preparation for the upcoming UNCCD COP16, the Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues, primarily focusing on addressing the UNCCD target of restoring 1.5 billion hectares of land by 2030. 

The Saudi Deputy Minister of Environment, Water, and Agriculture and advisor to the incoming COP16 President, Osama Faqeeha, emphasized in an interview with Arab News, the urgency of this mission: “At the forefront of our actions in New York has been ensuring we raise international awareness of the urgency with which the world must tackle land degradation, drought and desertification.”

Saudi Arabia’s efforts at the UNGA were not limited to raising awareness. The Kingdom took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions. 

A key event, titled the “Road to Riyadh,” brought together critical stakeholders from the environmental policy, governmental, scientific, and NGO ecosystems. 
 
This meeting laid the foundation for discussions that will continue through COP16, focusing on creating an actionable plan to address various environmental concerns. 

Faqeeha said: “At the UN General Assembly in New York, we have been hosting and participating in events designed to find lasting solutions to land degradation, desertification, and drought.”

He added: “We have been, and will continue to, consult and engage with a wide range of experts, decision-makers, and environmental stakeholders in the buildup to COP16 in Riyadh, to raise awareness around policy initiatives and land restoration funding mechanisms, with the ultimate goal of delivering a COP of action in December.”

A significant outcome of Saudi Arabia’s participation at the UNGA was the launch of the groundbreaking “Rio Trio” initiative, which Faqeeha described as a critical dialogue among the three major environmental conventions — the UNCCD, which focuses on land degradation, UNFCCC, which tackles climate change, and CBD which is centered on biodiversity. 

The Rio Trio event, held on the sidelines of the UNGA, brought together decision-makers from Azerbaijan, the incoming presidency of COP29; Colombia, the incoming presidency of CBD COP16; and Saudi Arabia, the incoming presidency of COP16.

The initiative’s goal is to find unified solutions that address the interconnected challenges of land degradation, climate change, and biodiversity loss. 

“The end of 2024 stands to be an important period for our planet,” Faqeeha said, describing it as “an opportunity to help deliver decisive change with all three COPs taking place over a short period of time.”

Saudi Arabia’s commitment to multilateral cooperation is not limited to the UNGA. The Kingdom has also played a leading role in international environmental initiatives, such as the G20 Global Land Initiative, which was launched at the G20 summit in Riyadh in 2020. 

The initiative aims to halve degraded land by 2040, a target that aligns with Saudi Arabia’s broader mission to foster global collaboration on land restoration. 

Faqeeha highlighted the significance of this initiative, stating: “It was in fact at the G20 in Riyadh in 2020 when the group took the historic step of launching the Global Land Initiative, pledging to halve degraded land by 2040.”

He also highlighted that Saudi Arabia will continue to promote this goal at upcoming international engagements, including the G20 summit in Brazil.

As the Kingdom prepares for COP16, the country is actively working to rally the international community to deliver enhanced commitments on land restoration and prevention of further degradation. 

The COP16 conference, scheduled to take place in Riyadh, is expected to attract up to 20,000 participants, making it the largest UNCCD COP to date. 

“We are expecting to attract up to 20,000 people, making COP16 the largest UNCCD COP to date,” Faqeeha said. The conference will also feature the first-ever Green Zone, a space where public and private sectors, NGOs, the scientific community, and financial institutions can collaborate on finding and funding sustainable solutions to land degradation. 

Faqeeha added: “We are doing this to amplify the voices of the 3.2 billion people impacted by land degradation, drought, and desertification around the world.”
 
The Kingdom’s leadership at COP16 is built on a strong foundation of international cooperation and domestic environmental stewardship. 

Saudi Arabia’s Vision 2030 roadmap, which emphasizes economic diversification alongside environmental sustainability, is a driving force behind its ambitious land restoration goals.

“Sustainability is deeply rooted in the Kingdom’s development roadmap of Vision 2030,” Faqeeha highlighted. He explained that Saudi Arabia does not view economic development and environmental conservation as conflicting forces but as interlinked.

According to Faqeeha, the economic benefits of land restoration are significant, with the potential to generate $1.4 trillion annually through increased crop production from the restoration of degraded land.

He warned, however, that the cost of inaction is even higher, citing UN estimates that 90 percent of the Earth’s soil is at risk of degradation by 2050, which could result in far-reaching economic and social consequences.

Saudi Arabia’s leadership in this area extends beyond its borders. The Kingdom has committed to restoring 200 million hectares of degraded land domestically and internationally, reflecting its deep-rooted connection to land stewardship. 

Faqeeha stressed the importance of balancing economic growth with environmental protection, particularly in light of the nation’s responsibility as a G20 nation. “The Kingdom is conscious of its responsibility to lead the local, regional, and international climate action efforts,” he said.

In fostering global collaboration at COP16, Saudi Arabia encourages other countries to adopt sustainable land management practices and contribute to the UNCCD’s goals. 

“We need a transformational raising of awareness,” Faqeeha said, stressing that land restoration is not just an environmental necessity but an economic opportunity. 

He explained that the return could be as high as $30 for every dollar invested in restoring degraded land. 

To achieve this, Saudi Arabia is actively working to unlock funding mechanisms, including those available via multilateral development banks, to help drive global investment in sustainable land management.

Businesses will also play a critical role in addressing land degradation, and the Kingdom is committed to encouraging the private sector to take more active steps in this regard. 

“The unfortunate reality is businesses have often been driven by short-term profits, overlooking the long-term consequences of their actions,” Faqeeha observed. 

He stressed that COP16 will focus on shifting this mindset, encouraging businesses to recognize the long-term value of sustainable practices. 

“Restoring ecosystems and soil biodiversity is among the most effective weapons against weather extremes,” he underlined, adding that businesses stand to benefit from greater economic security by investing in regenerative land use.

In addition to engaging the private sector, Saudi Arabia is committed to involving the youth in the global land restoration movement. Faqeeha pointed out that over 1 billion young people in developing countries depend on land and natural resources for their livelihoods. 

He stated: “Global efforts on land restoration can succeed only if we involve the youth.” At COP16, the Kingdom will provide a platform for young people to participate in discussions and advocate for sustainable land management practices. 

“UNCCD recognizes youth as key changemakers and their social and economic integration and empowerment are critical for global land actions,” Faqeeha said.

He added: “That is why the UNCCD is actively promoting youth engagement and placing it at the forefront of global efforts to restore land and boost drought resilience.”

Faqeeha highlighted that today’s young generation will inherit the responsibility of desertification and land degradation, climate change, biodiversity loss, and growing socioeconomic inequality. 

Gender equality is another key focus of COP16. Saudi Arabia will host a Gender Forum in the Green Zone to ensure that women’s leadership and participation in land restoration efforts are prioritized. 

“Gender equality is critical for the global effort to prevent, reduce, and reverse land degradation,” Faqeeha emphasized.

The forum will serve as a platform to address gender inequality and promote the role of women, particularly those most affected by land degradation, in shaping sustainable solutions.

As Saudi Arabia looks ahead to COP16, it remains steadfast in its mission to foster global collaboration, drive tangible results, and create a lasting legacy in the fight against land degradation, desertification, and drought. 

“At the UN General Assembly, we have sought to galvanize governments, businesses, NGOs and experts- to name just a few- to arrive in Riyadh ready to deliver the robust multilateral action our planet desperately needs,” Faqeeha concluded. 

By leveraging the momentum built at the 79th UN General Assembly and continuing to champion multilateral solutions, the Kingdom is set to make COP16 a transformative moment for both people and the planet.


Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say
Updated 13 October 2024
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Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

CAIRO: Fintech experts believe Saudi Arabia is positioned to lead the regional landscape in decentralized finance, and also solve some challenges on the horizon.

With active support from the Saudi Central Bank, also known as SAMA, and initiatives like Vision 2030, the Kingdom is creating an ideal environment for solutions to so-called DeFi to flourish.

In an interview with Arab News, Abdulrahman Al-Dakheel, CEO of Taskheer, an online fintech platform that facilitates rotating savings and credit associations, emphasizes the government’s backing for innovative financial technologies such as blockchain and Central Bank Digital Currencies.

“Our government, through SAMA, is actively exploring and supporting innovative financial technologies. Recently, Saudi Arabia joined an international CBDC trial led by the Bank for International Settlements to enhance cross-border payments, making them more efficient and secure,” he said.

This aligns with the broader Vision 2030 initiative aimed at diversifying the economy and enhancing digital financial inclusion, the CEO added.

Abdulrahman Al-Dakheel, CEO of Taskheer. (Supplied)

Fintech Saudi, an initiative launched by SAMA, plays a pivotal role in developing the sector’s ecosystem, Al-Dakheel explained.

It provides a comprehensive support framework for fintech entrepreneurs, including access to the regulatory sandbox, resources for training, networking, and funding.

“This ensures startups can test their products in a controlled environment, meeting regulatory standards while fostering innovation,” Al-Dakheel adds.

Jamil Abuwardeh, co-founder of METKAF.com, a Web3 advising company and crypto expert, highlights the transformative potential of DeFi in Saudi Arabia.

“The financial sector here is heavily reliant on traditional intermediaries, with limited access to financial services for many citizens. DeFi can change this by providing decentralized financial services accessible to everyone, regardless of their location or financial status,” he told Arab News.

DeFi can facilitate affordable and accessible services such as lending, borrowing, and investing, and enhance cross-border transactions with instant speed and almost zero fees, he added.

Jamil Abuwardeh, co-founder of METKAF.com. (Supplied)

Stefan Kimmel, CEO of UAE crypto exchange platform M2, stated that collaboration across the board is another major catalyst for DeFi adoption.

“Over the last decade, we have seen a rapid increase in both government and private investment in DeFi frameworks, incubators, and infrastructure across the GCC (Gulf Cooperation Council),” Kimmel said.

“Whether in the UAE or Saudi Arabia, we have also learned that true progress can only be achieved by genuine collaboration between traditional finance and banking institutions, fintechs, start-ups, technology providers, and regulators,” he added.

Challenges and risks

Implementing DeFi in Saudi Arabia is not without its challenges. One of the primary hurdles is regulatory uncertainty.

Al-Dakheel underscores the need for DeFi innovators to work closely with regulators to ensure compliance and secure necessary licenses.

“Security is a significant concern. DeFi platforms are frequent targets for cyberattacks, making it imperative to have robust security protocols and continuous audits,” he said.

Abuwardeh adds that a lack of public awareness and understanding is another challenge.

“One of the major challenges is the lack of awareness and understanding of finance in general among the public. But, if they are to gain from using it, then they will use it without the need to understand it, just like people use mobile phones without understanding how the networks operate,” he said

Additionally, the absence of clear regulations may deter investors and users from engaging with DeFi.

“However, SAMA has announced its intention to regulate DeFi, which could help to overcome this challenge,” Abuwardeh added.

Kimmel emphasized the importance of balancing innovation, evolution, and regulation across various projects related to DeFi, fintech, or cryptocurrency adoption. He noted that each market must evolve at a pace that maintains this equilibrium.

Stefan Kimmel, CEO of UAE crypto exchange platform M2. (Supplied)

“Some of the greatest strength of these solutions is that they are technologically more efficient, more secure, and more accessible than their traditional counterparts – but this can be easily undermined when attempts at innovation outpace regulation, or simply if best intentions fail to meet consumer needs,” Kimmel said.

Opportunities for integration

The opportunities for integrating DeFi with traditional financial systems in Saudi Arabia are substantial, the experts further highlighted.

Traditional banks can leverage the technology to offer more efficient, transparent, and accessible financial services.

“Collaborating with traditional financial institutions can lead to hybrid models that combine the strengths of both worlds. The openness of the Saudi Central Bank to digital innovations provides a conducive environment for such integrations, potentially transforming our financial landscape,” Al-Dakheel states.

Abuwardeh, however, believes that DeFi represents a new paradigm rather than an extension of existing systems.

“Decentralized finance does not need to fit into a centralized banking system. It needs to be understood and seen as a new technology,” he said.

He compares the integration of DeFi to the shift from traditional postal systems to email, highlighting that the technology, like online correspondence, is a completely different way of delivering services in a decentralized manner.

Kimmel highlighted the impressive nature of Saudi Arabia’s DeFi evolution, noting how clearly it has been defined and well managed through Vision 2030 and the Financial Sector Development Program.

“When an entire ecosystem shares a mandate to deliver on the tangible impacts that the technologies can offer their citizens – financial inclusion, economic diversification, and world-leading technological advancement – there is no doubt that they will end up one of the top DeFi markets in the world,” Kimmel added.

“Through the work of SAMA and MCIT (Saudi Ministry of Communications and Information Technology), in particular, we’re very confident of a regulatory-innovation-security balance that will deliver the best outcomes for fintechs, financial institutions, and customers in the Kingdom alike,” he added.