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.”


Aramco and Sinopec plan major Yasref expansion to boost petrochemical output 

Aramco and Sinopec plan major Yasref expansion to boost petrochemical output 
Updated 22 sec ago
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Aramco and Sinopec plan major Yasref expansion to boost petrochemical output 

Aramco and Sinopec plan major Yasref expansion to boost petrochemical output 

RIYADH: A major petrochemical industry expansion is set for Saudi Arabia’s west coast as Aramco, Sinopec, and Yasref advance plans to develop a fully integrated complex in Yanbu.

The three companies have signed a venture framework agreement to advance engineering studies for the project, adding new high-capacity facilities to the Yasref, short for Yanbu Aramco Sinopec Refining Co., site. 

Announced during Yasref’s 10th anniversary, the agreement will advance the construction of a mixed-feed steam cracker with an annual capacity of 1.8 million tons and a 1.5 million tonnes-per-year aromatics complex, complete with associated downstream derivatives. 

The project is part of Aramco’s long-term downstream strategy to transition from primarily an oil producer to an integrated energy and chemicals company.

“The Yasref Venture Framework Agreement further deepens and elevates our strategic partnership with Sinopec,” said Amin Nasser, Aramco’s president and CEO. 

“As we look forward to strengthening our collaboration with Sinopec in making Yasref a leading refining and petrochemicals joint venture, we aim to contribute to growing Saudi Arabia’s position as a global leader in energy and chemicals,” he added. 

Aramco has outlined plans to convert up to 4 million barrels per day of crude oil into petrochemicals by 2030, aligning with the Kingdom’s Vision 2030 goal to diversify the economy away from oil dependence. 

Yasref, a joint venture between Aramco — which holds 62.5 percent equity — and Sinopec, with 37.5 percent, is central to this strategy and serves as a key hub for refining and petrochemical integration on the Red Sea coast. 

The new expansion is expected to optimize synergies across existing operations and enhance the joint venture’s ability to meet rising global demand for high-value petrochemical products. 

“Our strong relationship with Sinopec continues to build momentum,” said Mohammed Al-Qahtani, Aramco downstream president. 

“The planned Yasref expansion aligns with our downstream strategy to unlock the full potential of our resources, including converting up to four million barrels per day of crude oil into petrochemicals by 2030,” he added. 

“In partnership with Sinopec, we aim to advance cutting-edge refining and petrochemical capabilities to deliver high-value products, create new opportunities, drive industrial innovation, and enable economic transformation,” he said. 

Sinopec, one of China’s largest state-owned energy firms, has increasingly invested in joint ventures abroad as part of Beijing’s broader Belt and Road Initiative. 

The BRI is a global development strategy introduced by China in 2013, aiming to enhance international trade and stimulate economic growth across Asia, Africa, and Europe. 

Inspired by the ancient Silk Road trade routes, the BRI seeks to create a vast network of transportation, energy, and telecommunications infrastructure. 

“Yasref, a flagship joint venture symbolizing China-Saudi energy cooperation, has not only served as a key driver for Saudi Arabia’s local economic growth but also actively advanced petrochemical industry upgrades,” said Zhao Dong, Sinopec’s president. 

“The Yasref expansion project represents a significant milestone in our bilateral partnership, ushering in a new phase of deeper and more far-reaching collaboration,” he added. 

The move reinforces the Kingdom’s growing petrochemical ambitions as global energy markets pivot toward downstream products amid uncertain demand growth for transportation fuels. 

Petrochemicals are projected to account for over a third of oil demand growth through 2030, according to the International Energy Agency, as usage in plastics, packaging, and industrial products continues to rise in emerging economies. 

Yasref is one of a number of strategic partnerships between Aramco and Sinopec, which also include Sinopec Senmei Petroleum Co., Sinopec SABIC Tianjin Petrochemical Co., and Fujian Refining & Petrochemical Co.


PIF-owned Lucid secures $1.1bn through convertible notes offering 

PIF-owned Lucid secures $1.1bn through convertible notes offering 
Updated 18 min 2 sec ago
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PIF-owned Lucid secures $1.1bn through convertible notes offering 

PIF-owned Lucid secures $1.1bn through convertible notes offering 

RIYADH: Electric vehicle manufacturer Lucid Group, majority-owned by Saudi Arabia’s Public Investment Fund, has closed a $1.1 billion offering of convertible senior notes due in 2030. 

In a statement, the company said $935.6 million of the net proceeds will be used to repurchase approximately $1.05 billion in aggregate principal of its outstanding 1.25 percent convertible senior notes due 2026. 

The offering also included the exercise of an option granted to initial purchasers, allowing them to acquire an additional $100 million in principal amount of the new notes. 

The capital raise comes just days after Lucid reported first-quarter deliveries of 3,109 vehicles — a 58 percent increase from the same period last year. 

Lucid’s offering of convertible senior notes is a way for the company to raise cash now by borrowing money that can later be converted into shares, while protecting existing investors from dilution. 

Taoufiq Boussaid, chief financial officer at Lucid, said: “We are delighted to have completed this offering, which better positions Lucid for future growth and success, while strengthening our already close partnership with the PIF, and minimizing any effect to existing shareholders.” 

He added: “The support of the PIF continues to be one of Lucid’s key strategic differentiators as we work together toward a more sustainable future.” 

Lucid said PIF backed the transaction through a prepaid forward share purchase agreement, providing the company with upfront cash while allowing the fund to acquire shares at a future date. 

The company also executed capped call transactions to increase the effective conversion price of the notes to $4.80 per share of Lucid’s Class A common stock. 

It added that this conversion price is double the last reported sale price of Lucid’s Class A common stock on the Nasdaq Global Select Market, which stood at $2.40 as of April 2. 

The capped call transaction limits the number of shares Lucid may issue to debt holders or investors, helping protect existing shareholders from dilution. 

“As a result of the capped call transactions, dilution or cash obligations upon a conversion of the notes should be mitigated by such increase in the effective conversion price of the notes,” the company said. 

Lucid used approximately $118.3 million of the net proceeds from the offering to cover the cost of the capped call transactions. 

Convertible senior notes are a type of debt instrument companies use to raise capital. 

These notes are considered “senior” in the capital structure, meaning they take precedence over other unsecured or subordinated debt in the event of liquidation, offering greater protection to investors. 

Lucid said it intends to use the remainder of the net proceeds for general corporate purposes. 

The company also retains the right to settle any conversions in cash, shares of its Class A common stock, or a combination of both, allowing flexibility in managing potential dilution or cash obligations, the statement concluded. 


Saudi, Japanese firms forge strategic gaming and esports partnership

Saudi, Japanese firms forge strategic gaming and esports partnership
Updated 26 min 21 sec ago
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Saudi, Japanese firms forge strategic gaming and esports partnership

Saudi, Japanese firms forge strategic gaming and esports partnership

 

DUBAI: Tokyo-based GLOE Inc. has signed a memorandum of understanding with Hawk Gaming Group, a Saudi gaming and esports company.

This partnership is designed to foster the growth and expansion of the gaming and esports industries in both Saudi Arabia and Japan.

Through its Vision 2030 initiative, Saudi Arabia has strategically positioned itself as a global leader in these sectors, making substantial investments in entertainment.

As part of this effort, the National Gaming and Esports Strategy, introduced in 2022 by Crown Prince Mohammed bin Salman, aims to establish the sector as a key driver of the national economy.

Hawk Gaming Group chairman and CEO Turki Faisal said: “Gamers are the driving force behind future economies. They are the center of innovation, culture, and growth. Through our partnership with GLOE, we aim to unlock the full potential of Japan’s world-class content and talent, not only within Saudi Arabia but on a global scale. Together, we’ll create new economic opportunities, strengthen industry connections, and contribute to realizing Vision 2030.”

In 2023, Saudi Arabia’s gaming industry generated approximately $7.2 billion in revenue, with 23.5 million active gamers. The country is also preparing to host its inaugural Olympic Esports Games in Riyadh in 2027. By 2030, the Saudi esports sector is projected to contribute $13.3 billion to the nation’s gross domestic product and create 39,000 new jobs.

According to a press release from GLOE Inc., Hawk Gaming Group is leading the charge in this transformative movement, providing cutting-edge solutions in game development, esports infrastructure, AI applications, and talent development and scouting.

The recently signed memorandum of understanding between GLOE and Hawk Gaming Group outlines a collaboration focused on leveraging the strengths of both nations, ranging from intellectual property and human resources to business opportunities.

Akihito Furusawa, GLOE Inc.’s co-CEO, said: “While Japan has a wealth of exceptional game content, localization and cultural adaptation in the Middle East have been limited.

“With global interest in Saudi Arabia’s esports scene at an all-time high, this is the perfect opportunity to bring Japanese games to the region. Together with Hawk Gaming Group, we will promote and expand Japanese gaming content across the Middle East.”


Clothing purchases leads $5bn pre-Eid spending in Saudi Arabia: SAMA data

Clothing purchases leads $5bn pre-Eid spending in Saudi Arabia: SAMA data
Updated 38 min 21 sec ago
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Clothing purchases leads $5bn pre-Eid spending in Saudi Arabia: SAMA data

Clothing purchases leads $5bn pre-Eid spending in Saudi Arabia: SAMA data

RIYADH: Saudi Arabia’s point-of-sale transactions rose to SR20 billion ($5.3 billion) in the week ending March 29, driven by SR3.1 billion in spending on clothing and footwear.

Following Eid Al-Fitr, POS transactions dropped by 47.6 percent to SR10.5 billion in the week ending April 5, according to the latest figures from the Saudi Central Bank, also known as SAMA.

During that seven-day period, spending in restaurants and cafes was the only sector to record a positive change, with the value of transactions rising by 2.6 percent to SR2.23 billion. This sector also saw a 12.4 percent surge in terms of the number of sales, reaching 56.1 million, which claimed the biggest share of the POS.

The education sector recorded the largest dip in transaction value, with a 69.8 percent fall to SR10.2 million. Spending on furniture followed, dropping 68.5 percent to SR141 million, while transactions decreased by 63.1 percent to 876,000. 

Expenditure on transportation came in third place, falling by 66.8 percent to SR322.8 million.

Spending on miscellaneous goods and services decreased by 58.9 percent, bringing the total value of transactions to SR1.12 billion, claiming the third-largest share of the POS.

The value of transactions in the telecommunication and construction divisions dropped by 47.8 percent to SR86.6 million and 51.6 percent to SR148.8 million, respectively.

Spending on electronics dropped by 47.9 percent to SR10.2 million, while expenditure on public utilities saw a 47.8 percent dip to SR32.5 million. Spending on food and beverages recorded a 36.2 percent decline to SR1.64 billion but still held the second-biggest share of the POS.

Spending in the leading three categories accounted for approximately 47.5 percent or SR5 billion of the week’s total value.

Geographically, Riyadh dominated POS transactions, representing around 30.3 percent of the total, with expenses in the capital reaching SR3.19 billion — a 49.9 percent decrease from the previous week. 

Jeddah followed with a 49.7 percent increase to SR1.4 billion; Madinah came in third at SR516.5 million, down 44.7 percent. 

Makkah experienced the most significant decrease in spending, dropping by 57.7 percent to SR515.6 million.

Tabuk followed with a 50.9 percent reduction to SR174.8 million.

Makkah and Tabuk saw the largest falls in terms of number of transactions, dropping by 35.7 percent and 26.1 percent, respectively, to 8.1 million and 3.5 million transactions.


Small emerging market dollar bonds resume selloff, Pakistan drops more than 6 cents

Small emerging market dollar bonds resume selloff, Pakistan drops more than 6 cents
Updated 09 April 2025
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Small emerging market dollar bonds resume selloff, Pakistan drops more than 6 cents

Small emerging market dollar bonds resume selloff, Pakistan drops more than 6 cents
  • Debt in smaller emerging markets has suffered sharp selloffs since Trump announced tariffs
  • The latest rout has pushed borrowing costs higher for countries like Pakistan, Egypt and Sri Lanka

JOHANNESBURG/NAIROBI: International bonds issued by smaller, riskier, emerging economies suffered another sharp selloff on Wednesday after President Donald Trump’s eye-watering 104 percent tariffs on China took effect, re-igniting turmoil across global markets.
Pakistan’s longer-dated dollar-denominated bonds tumbled more than 6 cents to be bid below the 70-cent threshold where debt is seen as distressed, Tradeweb data showed.
Longer-dated bonds, issued by Sri Lanka, Nigeria and Egypt, were all down between 3.5-4.5 cents, although trading was thin, according to market participants.
Debt in smaller emerging markets, known as frontier markets, has suffered sharp selloffs since Trump announced a raft of sweeping tariffs last Wednesday, with many bonds in the asset class losing 10 cents or more over the past week.
The latest rout is boosting the cost of borrowing for those economies, with many of the bonds seeing their yields in the double digits, a threshold that makes it unpalatable for them to tap international capital markets.
“There are some concerns in the market that Frontiers will find it more difficult in the future to raise external funding due to the external market developments and possibly persistent loss in risk appetite,” said Gergely Urmossy, senior frontier markets strategist at Societe Generale.
This could lead to more currency weakness in those economies over the medium term and curtail the space for central banks to lower interest rates to shore up their economies, he added.
Many frontier market governments, especially African sovereigns, had only recently returned to Eurobond markets.
They had lost access for some two years when the fallout from COVID-19 and Russia’s
full-scale invasion of Ukraine sent inflation sharply higher and fueled a global interest rate-hiking cycle that priced those governments out, and helped push Ghana and Zambia into default.
Razia Khan, head of research, Africa and the Middle East at Standard Chartered, said the latest set of tariffs had fueled more concerns over global growth.
“Frontier markets, especially at the lower end of the ratings spectrum, are seen as more vulnerable when risk-off sentiment grips markets,” she said.