SMEs account for 90% of Saudi industrial and mining sectors: Minister

SMEs account for 90% of Saudi industrial and mining sectors: Minister
Minister of Industry and Mineral Resources Bandar Alkhorayef speaking during the Industry and Mineral Resources Pioneers week. SPA
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Updated 01 October 2024
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SMEs account for 90% of Saudi industrial and mining sectors: Minister

SMEs account for 90% of Saudi industrial and mining sectors: Minister
  • Minister of Industry and Mineral Resources, Bandar Alkhorayef made the announcement during a dialogue session at an event organized by Monsha’at
  • During the Industry and Mineral Resources Pioneers week, officials highlighted the impact of pioneering projects in the sector

RIYADH: Small and medium enterprises constitute 90 percent of Saudi Arabia’s industry and minerals companies, revealing that the sector is not “exclusive” to top players, according to a senior official.

The comments by the Kingdom’s Minister of Industry and Mineral Resources, Bandar Alkhorayef, were made during a dialogue session at an event organized by the General Authority for Small and Medium Enterprises, known as Monsha’at, the Saudi Press Agency reported.

During the Industry and Mineral Resources Pioneers week, officials highlighted the impact of pioneering projects in the sector, underlining how industrial technical applications, often led by SMEs, effectively resolve challenges in large-scale industries, SPA said. 

In recent years, the Saudi government has launched several initiatives to bolster SMEs’ presence and participation in various sectors, including industry and mining. 

These undertakings, spearheaded by entities such as Monsha’at, focus on providing a range of support services, including financing, licensing facilitation, and business development support. 

Programs like the SME loan guarantee program – known as Kafalah – and the Saudi Venture Capital Co. are designed to enhance access to capital, mitigating one of the significant challenges faced by smaller companies.

Other examples of SMEs demonstrating innovative capabilities in the sector include improving mine preservation, environmental safety, and productivity.

This reflects the broader trend within Saudi Arabia, where SMEs increasingly leverage technology and innovation to address complex industrial challenges.

In an interview with Alekhbariya, the minister said due to facilitating regulation efforts in the Kingdom, “opening a factory is easier than opening a restaurant.” 

He added that the government is “working on building factories and leasing them to investors to support them and ease the burden on them,” as part of its goal to bolster entrepreneurs and sustain their projects.

The Saudi government’s support extends beyond facilitating market entry for SMEs. There is a concerted effort to ensure the long-term sustainability of these enterprises, helping them navigate the industry landscape and overcome operational hurdles. 

The mining sector, in particular, presents a wealth of opportunities, and the ministry has identified over 100 initiatives and incentives designed to empower entrepreneurs and SME owners within this space. 

This focus on creating a supportive ecosystem is intended to encourage more entrepreneurs to explore the untapped potential of the mining sector.

The initiatives are part of a broader strategy to cultivate a vibrant SME sector capable of contributing significantly to Saudi Arabia’s economic growth and diversification. 

By providing the necessary tools, resources, and regulatory support, the government aims to harness the full potential of SMEs, ensuring they remain a driving force in the country’s industrial and economic development. 

As Saudi Arabia continues to transform its economic landscape, the empowerment and growth of SMEs will remain at the forefront of this journey.


National climate commitments: A reality check since Paris

National climate commitments: A reality check since Paris
Updated 24 sec ago
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National climate commitments: A reality check since Paris

National climate commitments: A reality check since Paris
  • Current pledges fall short of avoiding disaster
  • Financial support must be tangible, says UNFCCC chief

BAKU: As COP29 convenes in Baku, global attention turns once again to the question of climate commitments and progress made since the landmark 2015 Paris Agreement.

The upcoming conference will pose a pressing question: Has the world truly advanced in meeting the emissions targets that science says are essential to avoid catastrophic climate change?

A close examination of the current Nationally Determined Contributions shows both progress and an urgent need for more ambitious action.

Enhancing accountability and transparency

For many nations, the Paris Agreement remains a guiding framework, but as the UN’s first global stocktake at COP28 demonstrated, current commitments and transparency mechanisms are insufficient for real progress.

COP29 aims to improve accountability measures to ensure that pledged funds are disbursed effectively and on schedule. 

Transparency mechanisms such as regular reporting on climate finance allocations and emissions reduction progress are being considered to enhance trust and accountability in international climate cooperation.

Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, highlighted the importance of tracking mechanisms to ensure that “climate cash counts,” emphasizing that financial support must translate into tangible, measurable results.

Stagnation in reducing global emissions

Since the Paris Agreement’s adoption, NDCs have become the primary framework for countries to articulate their climate ambitions, but recent data shows that the majority fall short of meeting the global temperature goal.

According to the latest report from the UN Climate Change Secretariat, global greenhouse gas emissions remain perilously close to 2019 levels, with minimal reduction progress.

Even with full implementation of all current NDCs, emissions are projected to peak before 2030 but fall short of the reductions needed to keep global warming below the critical threshold of 1.5°C above pre-industrial levels.

This gap illustrates an alarming trend — while commitments have increased in number and specificity, their collective impact remains insufficient to prevent severe climate impacts.

In particular, countries with historically high emissions — including the US, China, and India — have struggled to translate ambitious pledges into sustained reductions.

On the other hand, nations such as those in the EU, New Zealand, and several Pacific Island states have either reduced emissions substantially or put policies in place that could serve as models for more comprehensive global action.

Germany is another example of a country which has pioneered renewable energy legislation to achieve a record 46 percent share of renewable power in its electricity mix in recent years.

Meanwhile, Denmark and Sweden have established national frameworks targeting net-zero emissions by the middle of the century. Yet, many of the world’s largest emitters remain behind their targets, underscoring a divide between ambition and action that is critical for COP29 to address.

Climate-vulnerable regions, including sub-Saharan Africa and island nations, have also made considerable strides in setting strong climate policies despite contributing relatively little to global emissions. However, these nations often face implementation barriers that more affluent countries do not, primarily due to resource limitations.

Financial commitments fall short of needs

Climate finance has emerged as a critical factor in closing the emissions gap, especially for developing countries facing disproportionate impacts from climate change. Climate-related damages have skyrocketed in recent years, with extreme weather events causing billions in economic losses worldwide.

Stiell underscored this point by stressing the need for exponential growth in climate finance to ensure equitable transitions across economies.

“We simply can’t afford a world of clean energy haves and have-nots,” he said, warning that without substantive financing commitments only the wealthiest nations would be able to protect themselves against the intensifying climate crisis.

Yalchin Rafiyev, Azerbaijan’s lead negotiator, reinforced this: “We can see the divides that need to be bridged, but we must have a climate finance target that accounts for the needs of the most vulnerable.”

While the latest OECD data indicates developed countries mobilized $100 billion for climate action in 2022, this figure falls drastically short of the trillions of dollars needed annually.

However, the World Bank and the International Monetary Fund face mounting calls to further expand these initiatives and reduce financing barriers for developing nations.

As COP29 unfolds, global leaders face the challenging task of ensuring that the commitments made are not just promises but foundational steps toward meaningful, global climate action. The stakes have never been higher.


COP29 set to begin with hopes for more funding to fight climate change

COP29 set to begin with hopes for more funding to fight climate change
Updated 11 min 16 sec ago
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COP29 set to begin with hopes for more funding to fight climate change

COP29 set to begin with hopes for more funding to fight climate change
  • Just, equitable action vital, says COP29’s Mukhtar Babayev

BAKU: The highly anticipated COP29 UN climate change conference opens on Monday in Baku, Azerbaijan, bringing together world leaders, experts, and activists to tackle the urgent environmental challenges facing the planet.

Running through Nov. 22, this year’s event is centered around the theme “In Solidarity for a Green World.”

With over 50,000 participants expected, including top industry leaders and policymakers, COP29 aims to drive global climate action. However, several key leaders — EU President Ursula von der Leyen, US President Joe Biden, and Brazil’s President Luiz Inacio Lula da Silva—will be notably absent, according to Reuters.

COP29 has a special focus on climate finance, as parties aim to set a New Collective Quantified Goal on funding. 

Expectations are high as delegates prepare to discuss topics including carbon emissions reduction, sustainable development, and the integration of climate resilience into national policies. 

Azerbaijan is a significant producer of fossil fuels, just as last year’s host the UAE, but COP29 President-Designate Mukhtar Babayev told Arab News recently that hosting the conference is a sign of change.

“Like Saudi Arabia, Azerbaijan has historically been a significant energy producer, particularly in oil and gas. Hosting COP29 signifies our shift from traditional energy sources to embracing renewable energy solutions,” he said. 

“This event will allow us to showcase our ongoing efforts to diversify our energy mix, investing heavily in wind, solar, and hydrogen energy projects,” he added. 

The conference aims to deliver support for urgent action and foster a sense of shared responsibility between international organizations. 

Babayev highlighted Azerbaijan’s role in coordinating global efforts. “We hope that COP29 in Azerbaijan will serve as a platform for developing nations to voice their unique climate challenges and solutions.

“As a country that has faced environmental and economic transformation, Azerbaijan understands the delicate balance between development needs and climate responsibility,” he said. 

He added: “We can facilitate inclusive dialogues between the Global South and developed nations to ensure that climate action is equitable and just.” 

Commenting on the country’s preparations for the influx of visitors, Babayev said: “In terms of logistics and to ensure Baku is ready to host thousands of delegates from across the globe, we have been investing in the city’s infrastructure, with a strong emphasis on sustainability.” 

Moreover, investments are being made in expanding green public transportation options, enhancing conference facilities, and optimizing urban mobility to minimize environmental impact during the event, he stated.

“Additionally, we are committed to achieving a green COP by integrating renewable energy into the event’s operations and aiming for a zero-waste policy throughout the conference,” said Babayev. 

Some of its established environmental protection initiatives, according to Babayev, include reforesting degraded areas and protecting the Caspian Sea. 

“COP29 will spotlight these initiatives and encourage international collaboration to replicate them.” 

Although the path ahead is challenging, COP29 represents a crucial opportunity to turn ambition into tangible results for generations to come. 

“We are prepared to lead, innovate, and foster the international cooperation needed to tackle the climate crisis and build a more sustainable future for all,” said Babayev.


Egypt’s monthly inflation eases to 1.5% in October

Egypt’s monthly inflation eases to 1.5% in October
Updated 10 November 2024
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Egypt’s monthly inflation eases to 1.5% in October

Egypt’s monthly inflation eases to 1.5% in October

RIYADH: Lower food prices helped ease Egypt’s inflation rate in October to 1.5 percent, down from 2.3 percent in September, according to official data. 

The Central Agency for Public Mobilization and Statistics said that the general consumer price index reached 240 points last month, reflecting the modest decline in inflationary pressures. 

The easing was primarily driven by a 2.1 percent decrease in fruit prices and a 0.4 percent decline in vegetable and hotel services prices, which helped mitigate cost increases in other sectors. 

While some categories saw price reductions, others continued to exert upward pressure. Meat and poultry prices surged 3.3 percent, while fish and seafood prices climbed 2.1 percent. 

Dairy products, including cheese and eggs, rose by 2 percent, while sugar, tea, and cocoa recorded a 1.2 percent increase. Bottled water and natural juices increased by 1.1 percent, and cereal and bread prices rose by 0.8 percent. 

Energy costs remained a key factor, with a 7.2 percent increase in electricity, gas, and fuel prices. Housing maintenance expenses rose by 1.5 percent, while rent increased by 0.7 percent. 

Medical services also contributed to the inflationary trend, with outpatient services up 2.4 percent and hospital services increasing by 1.7 percent. 

On an annual basis, Egypt’s inflation rate dropped to 26.3 percent in October, a sharp decline from the 38.5 percent reported in the same month of the previous year, signaling a cooling trend in price pressures. 


Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector

Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector
Updated 10 November 2024
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Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector

Biban 24 concludes with $9bn in deals, boosting Saudi Arabia’s SME sector

RIYADH: Agreements exceeding SR35.4 billion ($9.42 billion) were signed at Biban 24 in Riyadh, an event organized by the General Authority for Small and Medium Enterprises, also known as Monsha’at

The five-day event, themed “A Global Destination for Opportunities,” attracted over 182,000 visitors, reflecting the Kingdom’s rapid development in the SME sector and entrepreneurship, the Saudi Press Agency reported.

According to Monsha’at Gov. Sami bin Ibrahim Al-Husseini, Biban 24 marked a landmark achievement for Saudi Arabia’s entrepreneurial framework. He highlighted the forum’s record-setting agreements and innovative initiatives, strengthening entrepreneurship within the country. 

Al-Husseini emphasized that these achievements align with Vision 2030’s objectives to boost the SME sector’s contribution to the national gross domestic product. 

“The forum’s success is a testament to the commitment of public and private sector enablers, partners, and sponsors to support SMEs and empower entrepreneurs to launch and grow their ventures,” he said.

Biban 24 featured partnerships with prominent international organizations, including the Estonian Business and Innovation Agency, Bahrain’s Tamkeen Labor Fund, and the Korea Franchise Association, as well as Malaysian SMEs, Korea’s Ministry of SMEs and Startups, Malaysian Franchise Development, Miltton CIO World, Alibaba Cloud, Zoom, and Oracle. 

Several financing agreements were signed with local banks, amounting to over SR15 billion to support Saudi entrepreneurs and SMEs.

The event drew a global crowd of business owners and featured over 300 panels and workshops with over 250 international and local speakers. 

The e-commerce section included 59 service providers and enablers, showcasing emerging technologies, modern retail, and e-commerce solutions. Specialists provided guidance on digital payments, online marketplaces, and supply chains throughout the forum.

Biban Talks, a dedicated stage, hosted over 100 speakers covering diverse topics such as media, tourism, and the environment, as well as education, sports, finance, investment, and the non-profit and financial sectors. 

This interactive platform enabled entrepreneurs to share success stories and discuss the challenges they encountered.

In the Investor Arena, over 115 business owners showcased their projects to potential investors, resulting in preliminary agreements for deals with 65 companies, totaling over SR15 million. 

The event also welcomed more than 1,350 startups from 72 countries worldwide. 

Biban 24 celebrated the graduation of 12 startups from its Real Estate Innovation Accelerator, while also launching a virtual lab to support business owners.

The event brought together over 70 local and international incubators and accelerators to showcase projects and share success stories. The forum also promoted collaboration between entrepreneurs and investors, aiming to build a robust entrepreneurial environment that fosters innovation and economic growth in Saudi Arabia.

Asrar Al-Omiri, CEO of “A’akelha Incubator,” said that Biban 24 was an essential platform for startup hubs and accelerators to spotlight their supported projects. 

She added that A’akelha’s participation through the “360 Platform” virtual incubator aimed to showcase success stories and assist projects in expanding through investment rounds. 

Al-Omiri highlighted the launchpad’s commitment to attracting entrepreneurs and offering an ideal environment for transforming ideas into scalable businesses.

Ghassan Halawa, founder and CEO of Parachute16, affirmed that Biban 24 is the leading event focused on high-growth startups and entrepreneurship. 

Halawa underscored the extensive local and international participation, which allows business incubators to showcase projects and directly engage with investors and key players in the entrepreneurial space.

Lama Ghalayini, business development specialist at VentureTactics Fund, described Biban 24 as a valuable opportunity for fintech startups to enhance their investment prospects. 

She said the forum provides a crucial platform for entrepreneurs to understand the fund’s role in enabling startups to overcome financing challenges through innovative solutions that foster their market growth.


Saudi Arabia’s industrial production holds steady in September: GASTAT 

Saudi Arabia’s industrial production holds steady in September: GASTAT 
Updated 10 November 2024
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Saudi Arabia’s industrial production holds steady in September: GASTAT 

Saudi Arabia’s industrial production holds steady in September: GASTAT 
  • The manufacture of chemicals and chemical products grew by 2 percent, while food product manufacturing saw a 12.3 percent increase
  • GASTAT revealed that the sub-index for mining and quarrying activity remained stable in September

RIYADH: Saudi Arabia’s industrial production held steady in September, showing a slight year-on-year decrease of 0.3 percent due to a modest decline in manufacturing output, official data showed.  

According to data from the General Authority for Statistics, the Kingdom’s manufacturing sector decreased by 0.5 percent in September, bringing the Industrial Production Index to 105.6 points. This decrease was largely attributed to a 12.3 percent drop in the production of coke and refined petroleum products. 

In contrast, the manufacture of chemicals and chemical products grew by 2 percent, while food product manufacturing saw a 12.3 percent increase. 

Saudi Arabia’s growth in the manufacturing sector is crucial to achieving the goals outlined in Vision 2030, as the Kingdom continues to diversify its economy and reduce its dependence on crude revenues. 

GASTAT revealed that the sub-index for mining and quarrying activity remained stable in September compared to the same month in 2023. 

“Oil production level in Saudi Arabia reached 8.97 million barrels per day in September 2024, which is the same level recorded in the previous year,” said GASTAT.  

In a bid to maintain market stability, Saudi Arabia, in alignment with the decision of OPEC+, reduced its oil output by 500,000 barrels per day in April 2023. This cut has now been extended until December 2024. 

IPI is an economic indicator that reflects the relative changes in the volume of industrial output and is calculated based on the industrial production survey. 

According to the report, the sub-index for electricity, gas, steam, and air conditioning supply activity recorded a 4.9 percent annual decrease in September, while the sub-index for water supply, sewerage, and waste management activities increased by 2.5 percent during the same period. 

The authority revealed that the index for oil activities decreased by 2.5 percent in September compared to the same month the previous year. 

On a positive note, the index for non-oil activities increased by 5 percent year on year in September, supported by growth in all non-oil economic activities except for electricity, gas, steam, and air conditioning supply. 

Compared to August, Saudi Arabia’s IPI decreased by 1.2 percent. 

The Kingdom’s sub-index for mining and quarrying activity decreased by 0.2 percent in September compared to the previous month, while manufacturing activities saw a decline of 2.6 percent. 

Month-on-month, the index for oil activities decreased by 1.6 percent, and the index for non-oil activities declined by 0.3 percent.