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Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT 

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT 
According to the General Authority for Statistics, the Kingdom’s non-oil sector expanded by 4.2 percent year on year in the third quarter, reflecting the goals of Vision 2030 to diversify the economy beyond oil revenues. Shutterstock
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Updated 31 October 2024
Nirmal Narayanan 
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Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT 

Saudi GDP grows 2.8% in Q3 amid strong non-oil expansion: GASTAT 
Updated 31 October 2024
Nirmal Narayanan 
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RIYADH: Saudi Arabia’s real gross domestic product rose by 2.8 percent in the third quarter of this year compared to the same period in 2023, driven by an increase in non-oil activities, official data showed.  

According to the General Authority for Statistics, the Kingdom’s non-oil sector expanded by 4.2 percent year on year in the third quarter, reflecting the goals of Vision 2030 to diversify the economy beyond oil revenues. 

GASTAT data also showed a 3.1 percent rise in government activities year on year, while oil activities grew by a modest 0.3 percent. On a quarterly basis, Saudi Arabia’s seasonally adjusted real gross domestic product rose by 0.8 percent in the third quarter compared to the second quarter. 

Breaking down quarterly figures, non-oil activities increased by 0.5 percent, while oil activities saw a 1.5 percent gain. However, government activities declined by 0.3 percent quarter over quarter. 

Earlier this month, the International Monetary Fund projected Saudi Arabia’s economy to grow by 1.5 percent in 2024 and 4.6 percent in 2025, affirming the Kingdom’s economic resilience. The World Bank echoed similar optimism, forecasting growth of 1.6 percent this year and acceleration to 4.9 percent in 2025. 

These IMF and World Bank projections exceed Saudi Arabia’s own pre-budget forecast, which estimated GDP growth of 0.8 percent in 2024, bolstered by a 3.7 percent rise in non-oil activities. 

Credit rating agency S&P Global, in its September report, also highlighted Saudi Arabia’s economic resilience, forecasting GDP growth of 1.4 percent in 2024 and 5.3 percent in 2025, driven by the Kingdom’s commitment to economic diversification and reducing reliance on oil revenues. 

Affirming the progress of Saudi Arabia’s economic diversification, GASTAT reported earlier this month that the Kingdom’s non-oil exports, including reexports, increased by 7.5 percent in August, reaching SR27.52 billion compared to the same month last year. 

On a monthly basis, Saudi Arabia’s non-oil exports rose by 8.13 percent in August from July levels. 

During the Future Investment Initiative’s eighth edition, Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan highlighted the sector’s growth, noting that non-oil GDP now represents 52 percent of the Kingdom’s economy. 

Topics: GASTAT GDP Saudi

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NEOM Green Hydrogen targets global market leadership: CEO 

NEOM Green Hydrogen targets global market leadership: CEO 
Updated 11 sec ago
Nadin Hassan
Nour El-Shaeri 
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NEOM Green Hydrogen targets global market leadership: CEO 

NEOM Green Hydrogen targets global market leadership: CEO 
Updated 11 sec ago
Nadin Hassan Nour El-Shaeri 

RIYADH: NEOM Green Hydrogen Co., part of Saudi Arabia’s futuristic city NEOM, is building a foundation for a transformative clean energy sector, aiming for global leadership rather than merely establishing the world’s largest production plant, said its CEO. 

In an interview with Arab News on the sidelines of the Saudi Green Initiative Forum, Wesam Al-Ghamdi emphasized the project’s broader objectives, highlighting its alignment with Saudi Arabia’s Vision 2030 and the country’s decarbonization and economic transformation goals. 

“When we are in production by December 2026, the 1.2 million tonnes of ammonia we’re going to be producing is equivalent to decarbonizing 22,000 heavy trucks. That’s up to 5 million tonnes of carbon emissions saved,” Al-Ghamdi said.  

“But even beyond that, it goes to us building NEOM Green Hydrogen, building the industry in Saudi Arabia, building the skill sets and the know-how within the Kingdom,” he said.   

The CEO noted that the project also serves as a model for large-scale hydrogen production, positioning Saudi Arabia as a leader in the global hydrogen economy. 

The plant will be powered entirely by solar and wind energy, with a 2.2-gigawatt electrolyzer designed for continuous hydrogen production. Construction is progressing rapidly, with over 60 percent of key infrastructure completed, including the hydrogen processing plant, solar facility, and wind farm.  

“To date, we have received and installed every major piece of equipment,” Al-Ghamdi revealed, pointing to critical milestones such as the installation of electrolyzers, hydrogen storage systems, and ammonia tanks, all contributing to the plant’s readiness for operation. 

In addition to construction, NGHC is focused on building its operational capabilities by recruiting skilled professionals and forging partnerships with educational institutions to develop a strong local talent pool. 

“We are also building the company today in terms of the operation and maintenance procedures, policies, and recruitment,” Al-Ghamdi said.  

Looking ahead, NGHC is preparing for the future by establishing a Hydrogen Innovation Development Center, which will operate a test electrolyzer to refine processes and train engineers ahead of full-scale operations. 

The company has also secured key partnerships to ensure the project’s long-term success. These include agreements with Thyssenkrupp for R&D on the technology, Baker Hughes to localize manufacturing of hydrogen compressors, and long-term service agreements with suppliers like Envision for wind turbines. Additionally, NGHC has partnered with Topsoe for ammonia plant technology. 

The scale and ambition of the project aim to position Saudi Arabia as a global leader in the hydrogen market. NGHC has also signed a 30-year offtake agreement with Air Products, allowing its hydrogen output to be converted into ammonia for easier transport and distribution to international markets.  

This strategic partnership ensures the plant can meet the growing global demand for hydrogen, particularly in the heavy transport and industrial manufacturing sectors. 

Reflecting on the significance of the project, Al-Ghamdi described it as more than just an industrial endeavor.  

“Our existence by itself is the answer,” he said when asked about how the project will scale the Kingdom’s clean energy transition.  

“We’re actually building the hydrogen production at the scale no one has ever attempted to. This scale is definitely the blueprint for everybody else to follow, to build at this scale. So, the world can get the demand of hydrogen.” 

Topics: COP16 NEOM Hydrogen

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PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination

PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination
Updated 20 min 42 sec ago
NADIN HASAN - MIGUEL HADCHITY 
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PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination

PIF-owned Soudah Development sets sustainability as core of vision for Saudi luxury destination
Updated 20 min 42 sec ago
NADIN HASAN - MIGUEL HADCHITY 

RIYADH: Soudah Development, a company backed by the Public Investment Fund, is placing sustainability at the core of its plan to transform Saudi Arabia’s southern region into a premier ultra-luxury destination.  

The company's commitment to ecological preservation and long-term climate resilience was highlighted at COP16 in Riyadh. 

Speaking to Arab News on the sidelines of COP16 in Riyadh, Srdan Susic, chief destination sustainability, highlighted the company’s approach to integrating environmental concerns with development goals. “We believe that without nature, you don’t have the people. Without people, you don’t have heritage. Without nature, without heritage, you don’t have a destination that we want to build,” he said.   

Soudah’s sustainability strategy includes proactive climate adaptation, ecosystem restoration, and rewilding. To date, the company has planted nearly 250,000 native trees, with a goal of one million by 2030. In addition, flagship species have been reintroduced into protected areas to promote natural recovery.  

“We want our ecosystems to continue providing ecosystem services for the communities who live there and for future visitors,” Susic added.  

The company is also focused on preparing for the long-term challenges of climate change. “Climate change adaptation is a process where you say there is climate change, there are going to be negative effects. Let me get as better prepared as I can for the future to mitigate these effects,” Susic explained.  

He emphasized that this approach would not only ensure sustainability but also enhance operational efficiency and financial viability. 

“Our hotel and other asset operators will be more willing to come to us because we are aware of our sustainability goals. Our insurers, the companies who will insure our assets for the next 40, 50, or 60 years of operation, will charge us less money because we know what the risks are and how to mitigate them.” 

Located at 3,015 meters above sea level, the Soudah Development project will feature 3,000 ultra-luxury hotel rooms, villas, and second homes, along with retail and infrastructure developments. 

It is expected to create jobs and provide new economic opportunities for local communities. “Soudah is very proud that we are a very important part of this vision and that we are helping to reduce the oil dependency of this country,” Susic said. 

Partnerships and future plans   

The company is finalizing several memoranda of understanding with government entities and a royal commission, aimed at supporting reforestation efforts and increasing the region’s biodiversity.  

One such agreement, with the Saudi Coffee Co., will involve planting coffee trees to boost both the local environment and the economy. “The agreements Soudah is planning to sign by the end of the year are very implementable, very efficient, and very precise,” Susic noted. 

Soudah Development’s efforts align with Saudi Arabia’s broader economic diversification goals. “We believe that Saudi Arabia is doing a big shift in its economic planning for the next generation to come,” Susic said.  

With a focus on tangible outcomes, Soudah Development aims to lead by example. “If you read our sustainability reports, you will see that we use past tense — we have done a lot,” Susic said. 

As COP16 highlights global sustainability initiatives, Soudah Development’s work underscores how luxury destinations can be developed while preserving nature and supporting local communities. 

Topics: COP16 business construction Saudi Arabia

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Saudi Arabia signs key tax, customs pacts to boost global trade and investment

Saudi Arabia signs key tax, customs pacts to boost global trade and investment
Updated 04 December 2024
MOHAMMED AL-KINANI
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Saudi Arabia signs key tax, customs pacts to boost global trade and investment

Saudi Arabia signs key tax, customs pacts to boost global trade and investment
Updated 04 December 2024
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia has signed a series of tax and customs agreements with multiple countries, further reinforcing the Kingdom’s commitment to global economic integration and enhancing its role in international trade.

The agreements were signed by Minister of Finance Mohammed Al-Jadaan, who also serves as chairman of the Zakat, Tax, and Customs Authority, during the 3rd Zakat, Tax, and Customs Conference held in Riyadh on Wednesday.

The two-day conference, inaugurated by Al-Jadaan, aims to strengthen Saudi Arabia’s international standing and promote deeper cooperation in the fields of tax, zakat, and customs.

The event focuses on digitization, artificial intelligence, and sustainability, addressing key challenges and supporting economic development in line with the goals of Saudi Vision 2030.

Al-Jadaan signed a double taxation avoidance agreement with Croatian Deputy Prime Minister Marko Primorac. This agreement aims to foster trade and investment between Saudi Arabia and Croatia while addressing tax-related challenges.

In addition, Al-Jadaan signed a customs cooperation agreement with Kosovo’s Minister of Finance, Labor, and Transfers, Hekuran Murati. This agreement focuses on enhancing trade facilitation through administrative collaboration and the use of advanced customs technologies.

He also signed a double taxation avoidance agreement with Kuwait’s Minister of Finance Noora Al-Fassam. This pact seeks to boost investment, address tax challenges, and strengthen bilateral economic relations between the two nations.

The conference brings together over 70 workshops, 90 local and international entities, and numerous panel discussions to share knowledge, address challenges, and develop strategies for supporting sustainable economic growth.

In his opening remarks, Al-Jadaan emphasized the conference’s role in fostering international collaboration and contributing to global economic recovery. He also highlighted Saudi Arabia’s progress in advancing Saudi Vision 2030, particularly through digital transformation.

Under ZATCA’s leadership, Saudi Arabia has become a global leader in e-government, achieving a 99.35 percent score on the UN E-Government Development Index.

This accomplishment reflects the Kingdom’s commitment to improving business processes and leveraging technology to streamline operations.

Al-Jadaan commended ZATCA for its continued excellence in achieving its objectives, contributing to Saudi Arabia's broader economic reforms, and advancing the Kingdom’s vision for a diversified and sustainable economy.

The 3rd Zakat, Tax, and Customs Conference underscores Saudi Arabia’s growing influence in global economic affairs and its proactive approach to fostering international partnerships.

By embracing innovation and working collaboratively with global partners, Saudi Arabia is positioning itself as a key player in the future of global trade and economic development.

Topics: deals customs taxation

Saudi Arabia to increase green spaces, promote afforestation

Saudi Arabia to increase green spaces, promote afforestation
Updated 04 December 2024
Reem Walid
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Saudi Arabia to increase green spaces, promote afforestation

Saudi Arabia to increase green spaces, promote afforestation
Updated 04 December 2024
Reem Walid

RIYADH: Saudi Arabia is working to expand its green spaces and accelerate afforestation efforts, according to the Kingdom's minister of municipal, rural affairs, and housing.

During the keynote address at the session titled "Urban Green Spaces: Leveraging Nature-Based Carbon Capture Solutions" on the second day of the fourth Saudi Green Initiative Forum in Riyadh, Majid Al-Hogail shared that the Ministry of Municipal, Rural Affairs, and Housing has developed initiatives and an effective strategic plan to support the Saudi Green Initiative.

This aligns with the critical role urban green spaces play in utilizing nature-based carbon capture solutions to address climate change. It also complements the Kingdom’s commitment to rehabilitating over 74 million hectares of land. To date, 94,000 hectares of degraded land have been restored, and since 2021, 49 million plants and shrubs have been planted.

“The Ministry of Municipalities and Housing is part of this transformation,” Al-Hogail said. “We are pleased to increase the percentage of green spaces, encourage afforestation, and ensure the efficient use of resources within the framework of Saudi Vision 2030, which prioritizes citizens' quality of life.”

He added, “The Kingdom has made tangible progress in enhancing environmental sustainability, improving air quality, and reducing carbon emissions.”

Al-Hogail also emphasized that achieving SGI’s goals requires coordinated efforts from all sectors and individuals.

“What the Ministry of Municipalities and Housing has done in this regard is far greater than what has been reviewed. However, we confirm that we will remain an active partner in realizing this ambitious vision and our commitment to transforming the cities of the Kingdom into global models of innovation and quality of life, building a greener future,” he said. “We have also encouraged the private sector to adopt social responsibility programs to support afforestation, reflecting the collaboration between the public and private sectors in achieving our common goals.”

During the panel discussion, Aljawhara Al-Quayid, head of the Climate and Sustainability Program at the King Abdullah Petroleum Studies and Research Center, highlighted the role cities must play in reducing emissions.

“Utilizing and optimizing all potential solutions is definitely a priority, and one of these is maximizing the carbon sequestration potential of urban green spaces,” Al-Quayid stated.

She further explained that Saudi Arabia recently launched the Saudi Greenhouse Gas Crediting Mechanism, a milestone that lays the foundation for an effective carbon market in the Kingdom and the broader region.

“These initiatives are driven not only by the government but also by the Public Investment Fund’s creation of a trading platform through its regional voluntary carbon market company,” she added. “These two accrediting mechanisms and the trading platform are the key enablers of the carbon market.”

Donnel Baird, founder of BlocPower, also participated in the session, explaining his company's work.

“My company, BlocPower, turns buildings into Teslas. What does that mean? Just as Tesla replaced fossil fuel engines in cars with all-electric engines, we can replace fossil fuel-based heating, cooling, and hot water systems in buildings with solar-powered, wind-powered, all-electric systems,” Baird explained.

This year’s Saudi Green Initiative Forum, held on Dec. 3-4 as part of COP16, is addressing global environmental challenges such as land rehabilitation, carbon reduction, and sustainable financing. The event also explores the role of natural solutions in helping communities adapt to climate change, while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.

Topics: COP16 SGI Green & Blue

Venture capital, banking key to driving sustainable finance

Venture capital, banking key to driving sustainable finance
Updated 04 December 2024
Reem Walid
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Venture capital, banking key to driving sustainable finance

Venture capital, banking key to driving sustainable finance
  • CEO of KBW Ventures highlighted how venture capital is at the forefront of investing in ideas
  • Prince Khaled bin Alwaleed was speaking on the second day of the fourth Saudi Green Initiative Forum in Riyadh
Updated 04 December 2024
Reem Walid

RIYADH: Venture capital and the banking sector are key to advancing innovative solutions for environmental sustainability, according to the founder and CEO of KBW Ventures.

During a session titled “Redefining Sustainable Finance: From Competitive to Catalytic Impact,” on the second day of the fourth Saudi Green Initiative Forum in Riyadh, Prince Khaled bin Alwaleed explained the role of impact investing and how it is scalable, sustainable, and profitable.

This falls in line with the fact that sustainable finance is evolving from a competitive advantage to a catalyst for systematic change. With global environmental, social, and governance assets expected to reach $50 trillion by 2025, the focus is shifting toward driving large-scale impact.

“Venture capital is not competitive to traditional banking sector. The banking sector loves venture capital because they de-riskify concepts that haven’t been developed yet,” Prince Khaled said.

 “Really, it’s a marriage of different types of industries coming together harmoniously, and venture capital and banking complement each other really well,” he added.

The CEO went on to say: “For me personally, impact investing really plays a huge role, simply because it reflects a lot on the investor’s desire for financial return as well as being in fact positively impacting the environment, whether it’s people, whether it’s the environment, whether it’s social responsibility,” he added.

Prince Khaled also highlighted how venture capital is at the forefront of investing in ideas that haven’t yet materialized, bearing much of the risk in the process.

“Venture capital comes in and de-riskify these opportunities. And to fuel the growth and to fuel the scale, banks come in and feel that scale once the proven model is there once there’s profitability, once there’s product market fit,” he said.

The founder also shed light on how impact investing is yet to develop in the region.

“We’ve seen investing, but impact investing is starting to grow. We’ve seen that in the last three to four years, we haven’t seen much happening in that field, but it’s slowly going to happen simply because investors dictate ESG-driven models have to be implemented in certain companies or even in certain startups,” Prince Khaled said.

He also highlighted that policies don’t drive innovation; rather, innovation drives innovation.

“Blanket policies don’t necessarily translate really well internationally or worldwide. They work in a specific manner, and they have to be tailored for other areas in the world. And again, this is why I believe policy doesn’t necessarily dictate change. I think the market, I think innovation, I think private sector really dictates the way change is going to happen,” the CEO concluded.

This year’s edition of the Saudi Green Initiative Forum, held from Dec. 3-4 as part of COP16, aims to tackle pressing global environmental challenges, such as land rehabilitation, carbon reduction innovations, and sustainable financing. The gathering will also explore the role of natural solutions in helping communities adapt to climate change while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.

Topics: COP16 Green & Blue

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