RCU showcases environmental, social, and economic milestones in 1st annual sustainability report

RCU showcases environmental, social, and economic milestones in 1st annual sustainability report
Visitor satisfaction across the heritage sites reached 96 percent while maintaining the integrity of AlUla’s cultural and historical landmarks. (Shutterstock)
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Updated 20 October 2024
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RCU showcases environmental, social, and economic milestones in 1st annual sustainability report

RCU showcases environmental, social, and economic milestones in 1st annual sustainability report
  • The report highlighted the successes of RCU’s journey and its commitment to responsible development

RIYADH: The Royal Commission for AlUla has unveiled its first Annual Sustainability Report, marking a milestone in the commission’s ongoing efforts to transform the region into a global destination for cultural, social, environmental, and economic sustainability.

The report highlighted the successes of RCU’s journey and its commitment to responsible development aligned with national and global sustainability frameworks, including the Saudi Green Initiative, Vision 2030, as well as UN goals.

According to RCU’s Governor Prince Badr bin Abdullah bin Farhan – who also serves as the Kingdom’s Minister of Culture – the commission is on an “ambitious journey to achieve the goals of the AlUla Vision, emanating from the spirit of Saudi Vision 2030.”

He added: “Our first Sustainability Report is a testament to our commitment to sustainability. It showcases our ambitions, goals, and activities in this field for our generation and the ones to come.”

Key achievements: Sustainability in action

The report highlighted RCU’s transformative achievements, notably raising AlUla’s Heritage Sustainability Index to 75 percent, surpassing its initial target of 63 percent.

Visitor satisfaction across the heritage sites reached 96 percent, reflecting the commission’s focus on delivering exceptional experiences while maintaining the integrity of AlUla’s cultural and historical landmarks.

RCU has also made considerable strides in social and educational development. Over the past year, the commission has provided 747 university scholarships to local students, enabling them to study in 117 international institutions.

This initiative is part of RCU’s broader goal of investing in the local community and empowering the next generation.

These educational efforts align with the commission’s vision to enhance the natural and social potential of our people and place, ensuring a sustainable future for the many aspects of life in AlUla, as noted by Abeer Al-Akel, acting CEO of RCU.

Community satisfaction also stands at 90 percent, reflecting the success of initiatives such as the Hammayah Programme, which has trained 1,400 local leaders and generated 2,500 employment opportunities.

Economic growth and job creation

Economic sustainability remains central to RCU’s long-term vision. By the end of 2023, the commission had created over 6,000 jobs in tourism-related sectors, with 1,500 jobs directly in the industry.

In addition, RCU’s Vibes AlUla initiative, which supports local entrepreneurs, led to the establishment of 336 new micro, small, and medium-sized enterprises and created 198 new local job opportunities.

The report emphasized RCU’s continued focus on sustainable economic development through partnerships with both local and international stakeholders.

As Al-Akel highlighted: “By promoting sustainable livelihoods, supporting local businesses and employment, and driving economic diversification, we aim to build a resilient and thriving economy in line with the objectives of Vision 2030.”

Green and climate-neutral initiatives

Aligned with Vision 2030 and the Saudi Green Initiative, RCU is pursuing a climate-neutral future, with a target to achieve carbon neutrality by 2035.

In 2023, the commission made significant strides in this direction through a number of innovative environmental projects.

These include planting over 111,000 trees in protected areas, converting agricultural waste into fertilizer, and expanding water distribution networks to achieve 95 percent coverage for AlUla’s population.

Another achievement from the report is the commission’s focus on green mobility. RCU has partnered with Lucid Motors to introduce electric vehicles to the region, including a fleet of 30 EVs and the installation of 10 charging stations across AlUla.

These efforts aim to reduce carbon emissions and provide sustainable transportation solutions for both residents and visitors.

As part of its nature conservation efforts, RCU has reintroduced several native species to the AlUla ecosystem. The report noted that 108 Arabian gazelles, 385 Sand gazelles, 328 Arabian oryxes, and 59 Nubian ibexes were released into the wild, contributing to biodiversity and the overall health of the local environment.

RCU’s Arabian Leopard Conservation Breeding Programme, which saw the birth of seven new cubs, also continued to play a pivotal role in protecting the critically endangered species.

Global partnerships: A collaborative approach to sustainability

One of the key strengths of RCU’s approach is its collaboration with world-leading organizations.

The report underscored RCU’s partnerships with UNESCO, the International Union for Conservation of Nature, and King Abdullah University of Science and Technology to promote conservation and sustainability.

These partnerships helped in the development of innovative solutions that enhance sustainability across all dimensions – environmental, social, cultural, and economic.

Prince Badr emphasized the importance of these collaborations, noting in the report: “Innovative solutions were adopted and important local, regional and international partnerships were forged with organizations.”

The collaborations included UNESCO for the protection of cultural heritage, IUCN for the promotion of comprehensive regeneration, and Red Sea Global in the areas of sustainability and environmental initiatives.

There were also partnerships with Space for Giants for the protection of biodiversity, Artefact for driving artificial intelligence and data transformation, and Thales Group.

With the release of this annual sustainability report, the commission is aiming to continue building on its sustainability successes as it transforms AlUla into a model of sustainable development for the Kingdom and the world.

In the report, Al-Akel underscored RCU’s role as a leader in the field, saying: “By protecting the cultural heritage from our past, and enhancing the natural and social potential of our people and place, we ensure a sustainable future for the many aspects of life in AlUla.”


Saudi Aramco posts $106.2bn profit for 2024 

Saudi Aramco posts $106.2bn profit for 2024 
Updated 7 sec ago
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Saudi Aramco posts $106.2bn profit for 2024 

Saudi Aramco posts $106.2bn profit for 2024 

RIYADH: Saudi energy giant Aramco reported a net profit of SR398.42 billion ($106.2 billion) in 2024, despite challenging market conditions, including lower prices for crude oil, refined products, and chemicals. 

In a press statement, the company revealed that its net profit declined by 12.39 percent from $121.3 billion in the previous year. 

Despite the earnings decline, the company raised its quarterly base dividend by 4.2 percent to $21.1 billion, underscoring its commitment to shareholder returns. 

This comes as Saudi Arabia, in line with OPEC+ decisions, reduced its oil output by 500,000 barrels per day in April 2023. The cut, which remained in effect throughout 2024, was also a key factor in Aramco’s profit decline. 

“Our strong net income and increased base dividend illustrate Aramco’s exceptional resilience and ability to leverage its unique scale, low cost, and high levels of reliability to deliver industry-leading performance for our shareholders and customers,” said Amin H Nasser, CEO of Aramco. 

According to the statement, Aramco’s total revenue stood at SR1.63 trillion in 2024, representing a marginal decline of 0.97 percent compared to 2023. 

The energy giant’s operational profit stood at SR774.63 billion in 2024, down 10.79 percent from the previous year. 

Aramco’s fourth-quarter profit aligned with analyst expectations despite $1.7 billion in non-cash charges. Total shareholders’ equity, after minority interest, stood at SR1.45 trillion as of Dec. 31, 2024, compared to SR1.53 trillion a year earlier. 

The company expects total dividends of $85.4 billion to be declared in 2025. 

Additionally, Aramco’s board has approved a $200 million performance-linked dividend, which will be distributed in the first quarter of this year. 

The company invested $53.3 billion in capital projects in 2024, with $50.4 billion directed toward organic capital expenditures. It provided a 2025 capital investment guidance of $52 billion to $58 billion, excluding approximately $4 billion in project financing. 

As Aramco continues to advance its long-term growth strategy, it expects its upstream gas business to generate an additional $9 billion to $10 billion in operating cash flow by 2030, while its downstream segment could contribute an extra $8 billion to $10 billion. 

Looking ahead, Nasser said global oil demand is expected to maintain momentum in 2025. 

“Global oil demand reached new highs in 2024, and we expect further growth in 2025,” said Nasser. 

He emphasized that “dependable and more sustainable energy” is key to global economic growth, adding that Aramco is making progress on projects to maintain its maximum sustainable crude oil capacity, expand gas capabilities, and further integrate its upstream and downstream businesses “to capture additional value.” He also noted the company’s efforts to help mitigate greenhouse gas emissions. 

Nasser added: “We are also adopting and deploying AI technologies and solutions at scale across our operations, unlocking greater efficiencies and value creation throughout our business. Capital discipline is at the core of Aramco’s strategy, enabling us to deliver growth and capture value across conventional and new energy solutions.” 


Oil Updates — slides on OPEC+ output increase, tariff uncertainty and Ukraine aid pause

Oil Updates — slides on OPEC+ output increase, tariff uncertainty and Ukraine aid pause
Updated 15 min 59 sec ago
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Oil Updates — slides on OPEC+ output increase, tariff uncertainty and Ukraine aid pause

Oil Updates — slides on OPEC+ output increase, tariff uncertainty and Ukraine aid pause
  • OPEC+ to proceed with planned April oil output increase
  • US tariffs on Mexico, Canada took effect on Tuesday
  • China announces 10-15% hikes to import levies on US products

BEIJING/SINGAPORE: Oil prices extended losses on Tuesday following reports that OPEC+ will proceed with a planned output increase in April, while markets braced for the impact of US tariffs on Canada, Mexico and China, as well as Beijing’s retaliatory tariffs on the US.

Brent futures fell 57 cents, or 0.8 percent, to $71.05 a barrel at 9:50 a.m. Saudi time, as US West Texas Intermediate crude eased 39 cents, or 0.6 percent, to $67.98.

“The current downward trend in oil prices is primarily driven by OPEC+’s decision to increase output and the introduction of US tariffs,” said Darren Lim, commodities strategist at Phillip Nova.

A further complicating factor was geopolitical developments related to the Russia-Ukraine conflict, he added.

President Donald Trump paused all US military aid to Ukraine following his Oval Office clash with President Volodymyr Zelensky last week.

The Organization of the Petroleum Exporting Countries and allies like Russia, known as OPEC+, decided to proceed with a planned April oil output increase of 138,000 barrels per day, the group’s first since 2022.

“While this decision aims to gradually unwind previous output cuts, it has raised concerns about a potential oversupply in the market,” Lim said.

Trump’s 25 percent tariffs on imports from Canada and Mexico took effect at 8:01 a.m. Saudi time on Tuesday, with 10 percent tariffs for Canadian energy, while imports on Chinese goods will increase to 20 percent from 10 percent.

Analysts expect the tariffs to weigh on economic activity and fuel demand, putting downward pressure on oil prices.

“Market participants are struggling to gauge the impact of the flood of energy-related policy announcements made by the Trump administration this month,” BMI analysts wrote in a note.

“However, those weighing to the downside, notably US tariff measures, are currently winning out.”

As the US tariffs kicked in on Tuesday, China swiftly retaliated, announcing 10 percent to 15 percent hikes to import levies covering a range of American agricultural and food products, and placing 25 US firms under export and investment restrictions.

Further weighing on oil was Trump’s halt of military aid to Ukraine, as the market has viewed the growing distance between the White House and Ukraine as a sign of a potential easing of the conflict.

That in turn could lead to sanctions relief for Russia, with more oil supply returning to the market.

The pause followed a Reuters report that the White House has asked the State and Treasury departments to draft a list of sanctions that could be eased for US officials to discuss during talks with Moscow, sources have said.

“The perfect storm for crude oil has intensified. Reports that the US has paused military aid to Ukraine is viewed as a precursor to lifting sanctions on Russian oil,” said IG market analyst Tony Sycamore.

“It also comes at the same time as US tariffs on Canada, Mexico and China come into effect, sparking fears of a trade war. Crude oil just cannot take a break at the moment.”

However, Goldman Sachs analysts said in a note on Monday that Russia’s oil flows are constrained more by its OPEC+ production target than sanctions, warning that an easing might not boost them significantly.

The bank also said higher-than-expected crude supply and a demand hit due to softer US activity and tariff escalation posed downside risks to oil price forecasts. 


Pakistan, IMF kick off talks on $7 billion bailout program review

Pakistan, IMF kick off talks on $7 billion bailout program review
Updated 13 min 5 sec ago
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Pakistan, IMF kick off talks on $7 billion bailout program review

Pakistan, IMF kick off talks on $7 billion bailout program review
  • IMF delegation led by Nathan Porter arrived in Pakistan on Monday to assess country’s economic performance
  • Pakistan secured the $7 billion Extended Fund Facility (EFF) last summer as part of an economic recovery plan

KARACHI: Pakistan and the International Monetary Fund (IMF) on Tuesday formally kicked off talks for the first review of a $7 billion bailout program that Islamabad secured last year, the finance ministry said in a statement. 

A Pakistani economic adviser told Arab News on Monday, requesting anonymity, that a nine-member mission led by Nathan Porter had landed in Pakistan to assess the country’s economic performance to determine the release of a $1.1 billion tranche over the following three weeks.

Pakistan has made little economic gains since securing the IMF bailout last summer. The country’s consumer price index (CPI) inflation rate, maintaining a downward trend on Monday, hit a more than 9-year low at 1.51 percent year-on-year in February.

“Pictures of kick-off meeting held today, ” the finance ministry wrote as caption of two photos shared with media on WhatsApp. The pictures showed Pakistani officials, led by Finance Minister Muhammad Aurangzeb, involved in discussions with an IMF delegation led by its Pakistan mission chief Nathan Porter. 

Pakistan’s finance ministry has so far not shared any details of the talks between the government and the IMF. However, local media has widely covered the delegation’s visit. 

Top Pakistani news channel, ARY News, reported that the IMF was demanding action against tax evasion in Pakistan’s real estate sector. 

“During the talks, the IMF pushed for action against those misdeclaring property values,” ARY reported on Monday, saying the government had assured the international lender it would activate the Real Estate Regulatory Authority.

“Strict penalties, including imprisonment and fines, will be imposed on individuals and agents who falsely declare property values … As per sources, failing to register could result in a fine of up to Rs500,000,” ARY added. 

Pakistan’s Dawn newspaper said the government “remains optimistic about a successful conclusion to the talks.”

“The performance review, in principle, is based on the first half of the current fiscal year — July 1 to Dec 31, 2024 — and while some shortcomings could be observed at that time, all those missing links have now been covered,” Dawn reported, quoting a Pakistani official.

The IMF team usually spends around two weeks reviewing fiscal reforms and policy.

Last week, a separate IMF team visited Pakistan to discuss around $1 billion in climate financing on top of the EFF. That disbursement will take place under the IMF’s Resilience and Sustainability Trust, created in 2022 to provide long-term concessional cash for climate-related spending, such as adaptation and transitioning to cleaner energy.


Saudi Public Investment Fund partners with Goldman Sachs Asset Management

Saudi Public Investment Fund partners with Goldman Sachs Asset Management
Updated 04 March 2025
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Saudi Public Investment Fund partners with Goldman Sachs Asset Management

Saudi Public Investment Fund partners with Goldman Sachs Asset Management
  • The PIF will serve as an anchor investor for new funds in Saudi Arabia and other Gulf nations
  • A goal s to attract capital from global investors, a significant portion of which will be earmarked for investments in the Kingdom

RIYADH: The Public Investment Fund and Goldman Sachs Asset Management signed a non-binding memorandum of understanding in Riyadh on Monday. The agreement designates the PIF as an anchor investor for new private and public funds in Saudi Arabia and other GCC countries.

An anchor investor is an institutional investor that backs a business or asset before it goes public on the stock market, to add value and help establish its name and reputation.

The aim of the new partnership is to help position the Kingdom as an investment hub and grow the Saudi asset management sector by leveraging the institutional strength of the PIF and the expertise of Goldman Sachs, the organizations said. A goal is to attract equity capital from international investors, a significant portion of which will be earmarked for investments within the Kingdom.

Yazeed Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, said asset management forms part of the fund’s broader efforts to diversify the Saudi economy and strengthen local capital markets.

He described the agreement with Goldman Sachs as “another element in PIF’s strategy of attracting global capital and expertise from a wide range of investors to the region, while facilitating knowledge-transfer and capacity-building within Saudi Arabia.”

Their private-credit strategy will focus on senior and junior loans (representing higher or lower priority debts) for companies in the GCC region, officials said. Their public equity strategies will target investments in publicly listed companies associated with the Kingdom.

Goldman Sachs recently expanded its presence in Saudi Arabia, opening a new office in Riyadh in October. Marc Nachmann, global head of asset and wealth management, said the company is proud to collaborate with the PIF to develop investment strategies.

“Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC’s rapid economic transformation,” he added.

“We are excited to see this partnership expand and to continue building our presence in Saudi Arabia.”

The PIF said it aims to support Saudi Arabia’s Vision 2030 plan for national development and diversification through a wide range of investments and partnerships. Since 2017, it has established 103 companies to create investment opportunities in the Saudi economy.


OPEC+ to proceed with planned April oil output hike

A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
Updated 03 March 2025
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OPEC+ to proceed with planned April oil output hike

A view shows the logo of Organization of the Petroleum Exporting Countries (OPEC). (File/Reuters)
  • The increase is the first since 2022 from OPEC+, which includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies

LONDON: OPEC+ has decided to proceed with a planned April oil output increase, the group said on Monday.
The increase is the first since 2022 from OPEC+, which includes the Organization of the Petroleum Exporting Countries, plus Russia and other allies. Oil was trading 2 percent lower toward $71 a barrel at 1900 GMT.
Eight OPEC+ members that are making the group’s most recent layer of output cuts held a virtual meeting on Monday and agreed to proceed with the April increase, OPEC said. The increase is 138,000 barrels per day according to Reuters calculations.
“This gradual increase may be paused or reversed subject to market conditions,” OPEC said in a statement. “This flexibility will allow the group to continue to support oil market stability.”
Oil has been trading in a range of $70-$82 a barrel in recent weeks in anticipation of major changes to US sanctions on large oil producers Iran, Russia and Venezuela as well as US tariffs on China that could reduce demand.
Trump has renewed pressure on OPEC to bring down prices, which rallied to multi-month highs above $82 a barrel in January after Trump’s predecessor Joe Biden slapped new sanctions on Russia.
Since then prices have fallen on hopes Trump would help clinch a peace deal in the war between Russia and Ukraine and boost Russian oil flows. However, his plans to cut Iran’s oil exports to zero and the cancelation last week of a Chevron license to operate in Venezuela prevented prices from falling further.
The combination of those bullish and bearish factors made decision-making for April extremely complex, OPEC+ sources have said. They added that Trump’s plans for global tariffs could complicate the outlook even further.
OPEC+ has been cutting output by 5.85 million barrels per day, equal to about 5.7 percent of global supply, agreed in a series of steps since 2022 to support the market.
In December, OPEC+ extended its latest layer of cuts through the first quarter of 2025, pushing back the plan to begin raising output to April. The extension was the latest of several delays last year.
Based on the plan, the gradual unwinding of 2.2 million bpd of cuts — the most recent layer — begins in April with a monthly rise of 138,000 bpd.