Saudi POS spending hits $4bn as education sector surges with 2nd-semester start 

Saudi POS spending hits $4bn as education sector surges with 2nd-semester start 
The rise in education spending is similar to what was seen before the school year began in August. Shutterstock
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Updated 20 November 2024
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Saudi POS spending hits $4bn as education sector surges with 2nd-semester start 

Saudi POS spending hits $4bn as education sector surges with 2nd-semester start 

RIYADH: Saudi Arabia’s point-of-sale transactions registered a weekly increase of 36.6 percent between Oct. 27 and Nov. 2, with the education sector leading the growth.

The Saudi Central Bank, also known as SAMA, recorded SR15.1 billion ($4.03 billion) in transactions over the seven-day period, with the education industry posting the highest sectoral increase at 79.3 percent to reach SR177.6 million.

This surge coincides with the start of the second semester on Nov. 17, similar to what was seen before the school year began in August.

SAMA figures showed that the clothing and footwear sector saw the second-largest rise, with a 63.7 percent jump to SR1.07 billion, reflecting a consistent trend in consumer spending during key academic periods.

This growth mirrored a similar pattern observed earlier in August this year, indicating a recurring trend in consumer spending within these two sectors.

Spending on telecommunication recorded the third largest surge, with a 51.9 percent positive change, reaching SR157.1 million. 

Expenditure on food and beverages followed with an uptick of 48.1 percent, reaching SR2.5 billion, claiming the biggest share of this week’s POS transaction value.

Recreation and culture followed with a 40.9 percent surge, reaching SR296 million.

Restaurants and cafes accounted for the second-largest POS transaction value, with SR2.1 billion. Miscellaneous goods and services followed at SR1.8 billion.

Spending in the leading three categories accounted for 42.8 percent or SR6.4 billion of the week’s total value.

At 11.8 percent, the smallest increase occurred in hotel spending, boosting total payments to SR328.4 million. Expenditures on construction and building materials came second, surging 19.1 percent to SR386 million. 

Geographically, Riyadh dominated POS transactions, representing 33.7 percent of the total, with expenses in the capital reaching SR5.11 billion — a 28.1 percent increase from the previous week. 

Jeddah followed with a 27.7 percent surge to SR1.93 billion, and Dammam came in third at SR745.7 million, up 28.8 percent.

Hail experienced the most significant rise in spending, increasing 65.1 percent to SR280.1 million. Tabuk and Abha followed, with expenditure surging 55.9 percent and 43 percent to SR324.8 million and SR187.4 million, respectively.

Regarding the number of transactions, Hail recorded the highest increase at 34 percent, reaching 4.4 million transactions, followed by Tabuk with a 28.7 percent increase, achieving 5.3 million transactions.


Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 

Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 
Updated 06 December 2024
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Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 

Saudi Arabia unveils Riyadh Action Agenda to address land restoration, drought 
  • Initiative launched during Agri-Food System Day at COP16 in Riyadh 

RIYADH: Saudi Arabia has introduced the Riyadh Action Agenda, an initiative to unite stakeholders in tackling land degradation, desertification, and drought. 

The announcement was made by Osama Faqeeha, deputy minister for environment at the Ministry of Environment, Water and Agriculture, and advisor to the UNCCD COP16 presidency, during a keynote address at a high-level dialogue on sustainable agri-food systems. 

The agenda will leverage COP16’s momentum over the two-year presidency, engaging diverse stakeholders to drive tangible impact for farmers, indigenous peoples, and other affected groups. 

Speaking during a keynote address, Faqeeha said: “If we are to accelerate land restoration and drought resilience initiatives at the pace and scale required, then it is critical we continue to mobilize and incentivize action long after COP16 in Riyadh ends, reaffirming Saudi Arabia’s leadership in land restoration, and leaving a lasting legacy of global change.”  

The launch took place on Agri-Food System Day, one of seven thematic days at COP16. Agriculture, a leading driver of land degradation, accounts for 23 percent of global greenhouse gas emissions, 80 percent of deforestation, and 70 percent of freshwater use, according to the UNCCD. 

Agri-Food System Day featured discussions on sustainable agricultural practices, with topics including soil health, resilient crops, and private sector involvement in transforming food systems. The day coincided with World Soil Day, which highlights the importance of sustainable soil management. 

“Around 95 percent of our food comes from the soil, and yet we continue to treat it like dirt,” Faqeeha said. “Unsustainable practices are causing significant soil loss annually, worsening global food and water security, and affecting farmers and consumers alike.” 

The UNCCD estimates that by 2050, global crop yields could decline by 10 percent, with worst-hit regions facing a 50 percent drop. Food prices could rise by 30 percent due to shrinking arable land and rising population demands. 

“We do not need to reinvent the wheel to deliver urgent solutions,” Faqeeha added. “Reinvesting harmful agricultural subsidies could immediately support land restoration and reform unsustainable practices.” 

The UNCCD COP16 conference, themed Our Land. Our Future., is being held from Dec. 2-13, 2024, at Boulevard Riyadh World. The event marks the UNCCD’s 30th anniversary and aims to address issues like drought resilience and land tenure. 


Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time
Updated 05 December 2024
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Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

Saudi Arabia surpasses Vision 2030 target of 1m volunteers ahead of time

RIYADH: Saudi Arabia has surpassed its Vision 2030 target of 1 million volunteers six years ahead of schedule, according to the CEO of the National Center for Non-Profit Sector.

Speaking to Arab News on the sidelines on the fourth day of COP16, Ahmed Al-Suwailem explained that the Kingdom’s volunteering journey achieved the target just prior to the end of 2024.

This falls in line with promoting the concept of volunteering and community participation in Saudi Arabia.

“Today, we are celebrating the biggest achievement that we did in terms of volunteering. Of course, I will start with my thanks and gratitude to his majesty, the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, and also his Crown Prince, the Prime Minister, Prince Mohammed bin Salman bin Abdulaziz, for their unbelievable effort and support, for us, and they enabled us to achieve, this amazing target of 1 million volunteers, 1 million per annum,” Al-Suwailem said.

He added: “Absolutely, we have achieved the target earlier than we were supposed to achieve it, or 2030. We achieved it just before the end of 2024. We have achieved 1 million, as I said, per annum. We were supposed to achieve it in 2030.”

He added: “We are going for a further target and we are now reviewing the target again, and we’ll see what we will achieve in 2030.”

With regards to achieving the target, Al-Suwailem said: “We couldn’t achieve that unless we have this amazing, unbelievable, continuous support from our leadership and also with an enablement from our people,” he said.

He added that the public’s volunteer support is evident in their efforts, thoughts, and shared experiences.

“We are trying our best to send our message as the people of Saudi Arabia, that we are global citizens, that we can also do our volunteering internally and internationally,” he added.

The CEO also highlighted how this achievement will support the Kingdom’s Vision 2030, underlining that volunteering will play a key role in helping the company meet the objectives of the Saudi Green Initiative. The undertaking aims to diversify the economy, reduce oil dependency, and promote sustainable development.

He added: “So, this is where we complete each other as governmental entities and also private sector and the nonprofit sector.”

The CEO concluded by saying: “And of course, last but not least, people are the key element for achieving all these targets.”

The Kingdom’s hosting of COP16 reflects its commitment to protecting the planet. In the largest multilateral conference it has ever hosted, Saudi Arabia is mobilizing the world to deliver international cooperation, change, and action that our land so desperately needs.


OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March
Updated 05 December 2024
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OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March

RIYADH: OPEC+ on Thursday agreed to extend their supply cuts for three months through March to to support market stability.

OPEC+ countries, including Saudi Arabia and Russia, “will extend their additional voluntary adjustments of 2.2 million barrels per day... until the end of March 2025,” the alliance said in a statement.

A virtual meeting was held on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting.

According to the statement, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December 2024.

The alliance members will extend their additional voluntary adjustments of 2.2 million bpd, that were announced in November 2023, until the end of March 2025 and then the 2.2 million barrels per day adjustments will be gradually phased out on a monthly basis until the end of September 2026. This monthly increase can be paused or reversed subject to market conditions.

OPEC+ members are holding back 5.86 million bpd of output, or about 5.7 percent of global demand, in a series of steps agreed since 2022 to support the market.

The alliance also agreed to allow the UAE to raise output by 300,000 bpd gradually from April until the end of September 2026, instead of the earlier plan to start it in January 2025.

Despite the group’s supply cuts, global oil benchmark Brent crude has mostly stayed in a $70 to $80 per barrel range this year and on Thursday traded near $72 a barrel, having hit a 2024 low below $69 in September.


NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming
Updated 05 December 2024
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NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming

RIYADH: NEOM’s food company, Topian, has unveiled its first high-tech greenhouse in Oxagon, the industrial hub along Saudi Arabia’s Red Sea coast. 

The four-hectare facility, located in Oxagon Innovation Bay, is designed to pilot sustainable and localized food production using advanced agricultural technologies, according to a press releasae.

The greenhouse is expected to produce nearly 4,000 tonnes of fruits and vegetables annually while developing AI-driven predictive models to optimize operations in similar environments. 

This initiative is part of Topian’s broader mission to enhance food systems with sustainable practices that minimize resource use. It aligns with Saudi Arabia's ambitions to enhance food security, combat climate change, and achieve net-zero emissions by 2060, all in support of Vision 2030 goals.

“This project is exciting because this first set of high-tech greenhouses enables us to control the climate for plant growth in an environmentally friendly manner,” said Juan Carlos Motamayor, CEO of Topian. 

“It represents a positive step towards boosting regional and national food security and transforming food systems in Saudi Arabia and other arid regions affected by climate change,” he added.

The pilot will evaluate crop performance under various conditions, focusing on energy and water efficiency, cooling technologies, and radiation control. The project will leverage NEOM’s future renewable energy infrastructure to further optimize production, the release added.

Future plans include leveraging NEOM’s renewable energy infrastructure, such as its photovoltaic network, to further optimize operations.

Vishal Wanchoo, CEO of Oxagon, said: “This pilot aims to deliver, at scale, sustainably produced ingredients that NEOM residents and hospitality partners will be able to use – demonstrating an entirely localized ‘farm-to-table’ supply chain.” 

The greenhouse will provide year-round availability of locally grown produce such as lettuce, tomatoes, and strawberries, prioritizing quality and sustainability. Scientists will analyze taste, color, and texture to refine crop production for the consumer market.

Developed in collaboration with Van der Hoeven, a Dutch horticultural technology firm, the project serves as a testbed for innovative agricultural solutions. It aligns with NEOM’s broader goals to establish sustainable industries and tackle food security challenges in arid regions.

By showcasing the potential of clean technology and innovative farming practices, Topian’s greenhouse project underscores NEOM’s commitment to pioneering solutions that address global challenges and set a benchmark for future sustainable development.


Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital
Updated 05 December 2024
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Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

DUBAI: Saudi Arabia has launched its first Japanese equity mutual fund, marking a significant step in a new partnership between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and Japan’s SBI Holdings, a leading financial group.

In a statement released on Thursday, SBI Holdings announced that the collaboration would provide Saudi investors with access to Japanese equities for the first time. At the same time, Japanese investors will be able to explore Saudi Arabia’s innovative financial offerings, including Shariah-compliant ETFs.

This partnership builds on a milestone achievement earlier this year, when SBI Asset Management— a subsidiary of SBI Global Asset Management— launched Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.

This new agreement further solidifies the investment ties between Saudi Arabia and Japan, contributing to the Kingdom’s Vision 2030, which focuses on attracting foreign investment, diversifying the economy, and expanding key sectors such as tourism, entertainment, and non-oil industries.

Recent developments supporting this vision include the creation of one of the world’s largest theme parks based on popular Japanese intellectual properties like Dragon Ball, as well as significant investments in major Japanese gaming companies.

Albilad Capital, the investment arm of Bank Albilad, is a key player in Saudi Arabia’s financial market and manages a significant portion of the country’s ETFs.

Meanwhile, SBI Group, which established its Middle East regional hub in Riyadh earlier this year, has reinforced its commitment to the region. The group has also teamed up with local firms to launch a regional investment fund aimed at fostering growth and innovation.

This collaboration highlights the deepening financial and economic ties between Saudi Arabia and Japan, positioning both nations for a future of shared investment opportunities.