EU seeks to boost green energy collaboration with Saudi Arabia

Special Christophe Farnaud, the EU ambassador to Saudi Arabia, emphasized that the EU possesses significant expertise in the green energy sector, which could help accelerate Saudi Arabia’s clean energy transition. AN photo by Huda Bashatah
Christophe Farnaud, the EU ambassador to Saudi Arabia, emphasized that the EU possesses significant expertise in the green energy sector, which could help accelerate Saudi Arabia’s clean energy transition. AN photo by Huda Bashatah
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Updated 26 November 2024
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EU seeks to boost green energy collaboration with Saudi Arabia

EU seeks to boost green energy collaboration with Saudi Arabia

RIYADH: The EU is keen to expand its cooperation with Saudi Arabia in the energy sector as the world increasingly shifts toward green energy, according to a senior EU official.

In an interview with Arab News on the sidelines of the World Investment Conference, Christophe Farnaud, the EU ambassador to Saudi Arabia, emphasized that the EU possesses significant expertise in the green energy sector, which could help accelerate Saudi Arabia’s clean energy transition, as well as support the broader Gulf Cooperation Council region.

Saudi Arabia, with its ambitious initiatives such as the world’s largest green hydrogen plant in NEOM, is leading the energy transition in the region, aiming for net-zero emissions by 2060.

“One of the many sectors where we are investing and what the partnerships are developing is the energy sector. It comes against the backdrop, not just of the regional needs, but also with this view of facing the green transition that we committed worldwide, not just as the Europeans, but also the Saudi government. This is where can make a difference,” said Farnaud. 

He added: “The EU has a strong expertise in that field (green energy). And the energy sector has been in many ways a key factor in the development of the Kingdom. So we already have relationships, between EU companies and Saudi Arabia. But now we will have a stronger focus on energy transition.” 

Farnaud noted that European firms have significant opportunities to collaborate in Saudi Arabia’s expanding renewable energy sector, particularly with the Kingdom’s substantial investments in solar power and green hydrogen projects. He also mentioned that European energy companies could work with Saudi energy giants like ACWA Power to help speed up the green energy transition.

In addition to energy, Farnaud pointed out that there are numerous other areas where Saudi Arabia and the EU could strengthen cooperation, including transport, machinery for emerging industries, entertainment, and tourism.

“Machinery is currently already a key sector for the exchanges between the EU and the Kingdom. But I also wanted to insist on the fact that even the new sectors for the Kingdom, like entertainment, tourism, which are a major asset for the coming years, and the EU has a well-known competence and expertise in these industries,” he said. 

The EU ambassador also noted that European companies are increasingly aware of the transformation taking place in Saudi Arabia and are eager to explore new opportunities in the Kingdom.

“We had the first ever EU-Saudi investment forum last year in October. We had around 1,400 companies registered and it shows  the strong interest from them. It shows also the commitment by the Saudi government and EU to promote these exchanges,” said Farnaud. 

He added that the EU is also helping small and medium-sized enterprises in Europe understand the potential of the Saudi market, and highlighted how the Kingdom’s updated investment law could benefit firms entering the country.

Saudi Arabia’s revised investment law, introduced in August, promises enhanced protections for international investors, including adherence to the rule of law, fair treatment, property rights, and stronger safeguards for intellectual property, while facilitating smooth fund transfers.

Wider EU-GCC cooperation

Farnaud also discussed broader EU-GCC relations, noting that the EU-GCC Summit held in October underscored the importance of “partnership in the economic field,” with energy cooperation identified as a key area for strengthening ties.

“The EU and GCC have very dynamic economic relations. And it is not just about Saudi Arabia and the EU, where already the investment stocks from EU in the Kingdom is above €31 billion ($32.58 billion) which is quite significant. But if you enlarge the picture to the GCC as a whole, we are above €215 billion,” he told Arab News. 

During a panel discussion on the second day of the World Investment Conference, Farnaud highlighted that European companies are playing an active role in most of Saudi Arabia’s major “giga-projects,” including NEOM, Qiddiya, and AlUla.

He also emphasized that Europe offers an open market with a highly skilled workforce, which countries in the GCC, including Saudi Arabia, can tap into to accelerate their economic diversification efforts.

Regarding foreign investments, Farnaud said: “Investment is a two-way thing, and it is a question of trust and mutual knowledge. It is not just us going to the GCC, which is important, it is also GCC countries coming to Europe. In that way, they are already doing it. About 50 percent of foreign investments of GCC countries go to Europe.”

Progress on Vision 2030

During the same panel, Prince Sultan bin Khalid Al-Saud, CEO of the Saudi Industrial Development Fund, highlighted Saudi Arabia’s socio-economic progress since the launch of Vision 2030. He described the Kingdom as unique, thanks to its “positive energy and optimism.”

The SIDF CEO stressed that Vision 2030 is designed to benefit both current and future generations of Saudis, with a particular focus on investing in people.

“For Saudi Arabia, development starts with investing in people. No matter how you look at Vision 2030, or how you slice it, it’s all about the people—it’s about investing in them, trusting their abilities, and empowering them to create something not just for this generation of Saudis, but for all future generations,” he said.

Affirming the growth of the startup ecosystem in Saudi Arabia, the SIDF chief said that venture capital in Saudi Arabia has grown at a compound annual growth rate of 86 percent in the last five years. 

He also added that Saudi Arabia’s women participation in the workforce is higher than that of Western Europe. 

According to the latest report by the General Authority for Statistics, unemployment among Saudi nationals fell to 7.1 percent by the end of the second quarter, a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points. 

The report added that the unemployment rate among Saudi females also witnessed a sharp quarterly decline of 1.4 percentage points at the end of the second quarter reaching 12.8 percent. 


Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
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Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
  • District will include Diriyah Arena, three mixed-use office buildings, and parking facility
  • It is expected to contribute around SR70 billion to GDP

JEDDAH: Saudi Arabia’s entertainment landscape is set for a major boost with the awarding of a SR5.75 billion ($1.53 billion) contract to construct a 20,000-seat arena as part of the Diriyah development. 

Diriyah Co., a subsidiary of the Public Investment Fund, has awarded the contract to a branch of China Harbor Engineering Co. for the Arena Block, a district that will include the Diriyah Arena, three mixed-use office buildings, and a parking facility, the company announced. 

Spanning approximately 74,000 sq. meters, the Diriyah Arena is designed to host concerts, sports, esports, exhibitions, and live performances to attract residents and international visitors. 

The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan and aims to transform the Kingdom’s economic and tourism sectors. 

Upon completion, it is expected to contribute around SR70 billion to the gross domestic product, generate nearly 180,000 jobs, and accommodate approximately 100,000 residents. 

“The iconic Diriyah Arena will be a landmark entertainment complex in Diriyah that reinforces the City of Earth’s growing global role in shaping Saudi Arabia’s artistic and cultural future, in alignment with Vision 2030,” Jerry Inzerillo, group CEO of Diriyah Co., said.

The contract is the latest step in the company’s ongoing 2025 development drive, marking continued progress on the project. 

Yang Zhiyuan, CEO of the Chinese firm for the Middle East, said: “CHEC will bring to the project a wealth of global experience, technical expertise, and a proven track record in delivering the complex.” 

Designed by global firm HKS Inc., the structure blends traditional Najdi architecture with modern elements, reflecting Diriyah’s cultural heritage and global outlook. 

The broader Arena Block will also include three mixed-use office buildings designed by John McAslan + Partners, covering 114,000 sq. meters, along with over 4,000 parking spaces to support the stadium and surrounding offices. 


UAE launches general budget cycle for 2027-2029, state news agency says

UAE launches general budget cycle for 2027-2029, state news agency says
Updated 16 July 2025
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UAE launches general budget cycle for 2027-2029, state news agency says

UAE launches general budget cycle for 2027-2029, state news agency says

DUBAI: The UAE has launched its general budget cycle for the years 2027 to 2029, the state news agency reported on Wednesday.

The total value of the UAE’s federal budget over four consecutive cycles reached 900 billion dirhams ($245 billion), the agency added.


Riyadh emerging as global super hub amid economic boom: Knight Frank

Riyadh emerging as global super hub amid economic boom: Knight Frank
Updated 16 July 2025
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Riyadh emerging as global super hub amid economic boom: Knight Frank

Riyadh emerging as global super hub amid economic boom: Knight Frank

RIYADH: Saudi Arabia’s capital is rapidly transforming into a leading global wealth hub, fueled by the Kingdom’s successful economic diversification under Vision 2030, a recent Knight Frank report said.

The Riyadh edition of the “Emerging Wealth Hub” series noted that the Saudi capital is transitioning from an oil-dependent economy to a powerhouse for finance, culture, and lifestyle, attracting multinational corporations, investors, and expatriates.

Surging demand for commercial and residential real estate, coupled with major infrastructure projects, is positioning Riyadh as a future-ready super hub.

A key driver has been the Regional Headquarters Program, which has already exceeded its 2030 target, with 600 global firms, including Bechtel, PwC, and Northern Trust, setting up regional bases in Riyadh. 

This influx has pushed Grade-A office vacancy rates down to just 2 percent, while prime office rents have skyrocketed by 23 percent in the past year and 84 percent since 2020.

The city’s booming startup ecosystem, supported by government incentives, advanced digital infrastructure, and a growing talent pool, complements its rise as a financial and business epicenter.

Amar Hussain, associate partner in research for the Middle East and North Africa region at Knight Frank, noted that Riyadh’s strategic vision, economic growth, and commitment to sustainability “positions it as a leading global wealth hub of the future, attracting talent, investment and tourism on an unprecedented scale.”

He added: “Its global positioning as a leisure destination will only increase further when the eyes of the world turn to the city for the 2030 World Expo and the 2034 FIFA World Cup.”

According to the report, the Kingdom issued over 160,000 new business licenses in the last quarter of 2024 — a 67 percent annual increase — bringing the total number of registered businesses to 1.6 million. The national unemployment rate has fallen to a historic low of 7 percent.

Partner and Head of Research for the MENA region at Knight Frank, Faisal Durrani, said: “The private sector is booming, with new business licenses up by two-thirds in a single year and vacancy rates for grade-A offices among the lowest in the world.” 

Durrani added: “This wave of entrepreneurialism is both a result of and a catalyst for Riyadh’s evolving business environment, and the city’s ability to attract human and financial capital is accelerating its emergence as a future-ready global wealth hub.”

To accommodate future demand, Riyadh’s office space is projected to nearly double from 5.5 million sq. meters to 9.8 million sq. meters by 2027, supported by government-backed infrastructure projects and growing institutional investment.

In an interview with Arab News in June, Emmanuel Durou, technology, media, and telecommunications leader at Deloitte Middle East, highlighted the Kingdom’s supportive business environment, which includes government incentives, substantial funding mechanisms such as venture capital and private equity, and vibrant incubator ecosystems, including Garage 46 and Impact 43.

Also speaking to Arab News in June, Jasem Al-Anizy, partner in corporate finance at Addleshaw Goddard KSA, shed light on the legal structures that are proving effective in the nation.

“Saudi startups have historically preferred an offshore ring-fencing of intellectual property assets by holding and protecting intellectual property interests in a standalone sister company based in an offshore jurisdiction,” he explained to Arab News. 

“This has helped startups in scaling globally and simplifies exit strategies,” Al-Anizy said. 

Sustainability and liveability take center stage 

Riyadh is integrating sustainability into its rapid expansion, with initiatives like the King Abdullah Financial District — the world’s largest LEED Platinum-certified mixed-use business hub — and the Mostadam green building rating system. The Green Riyadh program, which aims to plant 7.5 million trees, is enhancing air quality and urban livability.

“Urban mobility in Riyadh is being redefined through major investments in infrastructure,” said Harmen De Jong, regional partner and head of consultancy for the MENA region at Knight Frank.

Major transport upgrades, including the Riyadh Metro, the expansion of King Khalid International Airport, and the 220-km Sports Boulevard, are improving connectivity and reducing congestion.

“These transport enhancements are not only reducing congestion but also improve air quality and overall urban resilience,” De Jong said, adding: “Combined with the rise in major multinationals opening offices in the city and high-quality residential and leisure developments, Riyadh has a uniquely compelling offer as a live, work, play destination both within the GCC (Gulf Cooperation Council) and globally.” 

Leisure, tourism, and global events fuel growth 

Riyadh is fast becoming a premier leisure destination, with Riyadh Season 2024 drawing 18 million visitors. The city’s successful bids to host the 2030 World Expo and the 2034 FIFA World Cup are set to amplify its global profile, with the Expo alone expected to generate an economic impact of $94.6 billion. 

Tourism is booming, with Saudi Arabia surpassing its original Vision 2030 target by welcoming 106.2 million visitors in 2023. The new goal is 150 million visits by 2030, supported by visa-free entry for 66 countries and the launch of Riyadh Air. Hotel supply is expanding rapidly, with 30,000 rooms expected by 2027.

Inbound tourism spending in the Kingdom surged to a record SR153.61 billion ($40.95 billion) in 2024, marking a 13.82 percent annual increase, according to data from the Saudi Central Bank.

The rise also pushed the Kingdom’s travel balance surplus to its highest annual level yet, SR49.78 billion, up 7.81 percent from the previous year.

Residential market soars amid surging demand 

Riyadh’s residential sector is experiencing unprecedented growth, with apartment prices increasing by 75 percent and villa costs by 40 percent since 2019. In 2024 alone, prices rose by 10.6 percent for apartments and 6.3 percent for villas, while sales volumes jumped 44 percent year-on-year. 

New Premium Residency Visas, linked to property ownership, are opening the market to international investors. With 305,000 new homes needed in the next decade, developers and investors have significant opportunities ahead.

Knight Frank’s Hussain said: “With evolving buyer profiles, increasing international interest and sustained local demand, Riyadh’s housing market is positioned for continued expansion and diversification.”

He added: “Our latest projections highlight the scale of opportunity for investors and developers in one of the region’s fastest-moving residential markets.”


Saudi Arabia attracts $32bn in mining investments amid sector reforms

Saudi Arabia attracts $32bn in mining investments amid sector reforms
Updated 16 July 2025
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Saudi Arabia attracts $32bn in mining investments amid sector reforms

Saudi Arabia attracts $32bn in mining investments amid sector reforms
  • Kingdom has attracted $32 billion in investments in mining projects
  • Mineral exploration spending has quadrupled since 2018, reaching $100 per sq. km

RIYADH: Saudi Arabia’s ongoing mining reforms have helped the Kingdom attract $32 billion in investments for projects in iron, phosphate, aluminum, and copper, a senior official said. 

Khalid Al-Mudaifer, vice minister of industry and mineral resources, told financial news outlet Asharq Business that the figure represents nearly one-third of the $100 billion the Kingdom aims to attract in the sector by 2030. 

This comes as the country’s mining sector is projected to increase its contribution to gross domestic product from $17 billion in 2024 to $75 billion by 2030. The industry generated $400 million in revenue in 2023 and is now supported by a $100 billion investment roadmap targeting critical minerals by 2035. 

“Saudi Arabia has attracted approximately $32 billion in investments in mining projects in iron, phosphate, aluminum, and copper, which are already under construction. This represents nearly a third of the $100 billion targeted for investment by 2030,” Al-Mudaifer said.

The vice minister added that mineral exploration spending in the Kingdom has quadrupled since 2018, reaching $100 per sq. km, with an annual growth rate of 32 percent, significantly above the global average of 6 to 8 percent. 

He said the number of exploration firms in Saudi Arabia has grown from just six in 2019 to 132 today, with 60 percent of them being small and medium-sized enterprises, according to the Saudi Press Agency. 

Foreign companies currently represent approximately 70 percent of all firms operating in the Kingdom’s mining sector, Al-Mudaifer said. 

Saudi Arabia is estimated to hold SR9.37 trillion ($2.5 trillion) in mineral reserves, and the Kingdom aims to establish mining as the third pillar of its economy, after oil and petrochemicals. 

In January, at the Future Minerals Forum in Riyadh, Minister of Industry and Mineral Resources Bandar Alkhorayef announced upcoming exploration opportunities across 5,000 sq. km of mineralized belts in 2025, as the Kingdom continues its push to expand the sector. 

In March, Saudi Arabia launched a new incentive package to attract foreign direct investment into its mining industry

As part of this initiative, the Ministry of Investment is collaborating with the Ministry of Industry and Mineral Resources through an exploration enablement program designed to simplify investment procedures in the sector, according to the Saudi Press Agency. 

The program is part of broader efforts to enhance mineral exploration and foster an attractive environment for both local and international mining companies. 


Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations

Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations
Updated 16 July 2025
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Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations

Youth-led businesses in Saudi Arabia account for over a third of all commercial registrations
  • Fastest-growing sectors include app development and AI technologies
  • Private sector giants are collaborating with government initiatives to equip Saudi youth with expertise

RIYADH: Saudi youth-owned businesses now represent 38 percent of the Kingdom’s total active commercial registrations as of the second quarter of this year, according to the Ministry of Commerce.

The fastest-growing sectors among the 474,000 youth-led businesses include app development, which led the way with 28 percent annual growth resulting in 18,780 commercial permits. Artificial intelligence technologies closely followed, with a 34 percent increase, reaching 14,409 registrations.  

The e-gaming industry also showed remarkable progress, expanding by 32 percent to 8,260 permits, while film, video, and TV production grew by 20 percent, totaling 5,752 registrations by mid-2025.

Saudi Arabia has a predominantly young population, with the latest census data indicating that individuals under the age of 30 constitute 62.8 percent of the population.

Through public-private partnerships and targeted programs, the nation is equipping young Saudis with digital literacy, entrepreneurial skills, and industry-specific expertise in high-growth sectors like AI, renewable energy, and tourism. 

Private sector giants, including PwC, NEOM, Aramco, and Red Sea Global, are collaborating with government initiatives to equip Saudi youth with industry-relevant expertise.

Programs such as PwC’s Hemam training, Red Sea Global’s leadership programs, and vocational training schemes ensure hands-on experience, aligning education with labor market demands.

Incubators like The Garage foster startup innovation.

However, challenges persist in aligning education with labor market needs, necessitating ongoing cooperation between businesses and academia to sustain this talent pipeline. 

PwC’s Riyadh Al-Najjar emphasized in an interview with Arab News in January that an “entrepreneurial mindset” is critical for private sector growth, while Red Sea Global’s Zehar Filemban highlighted the need for adaptability in a fast-evolving job market. 

The government is addressing these needs through vocational training, Saudization programs, and incentives to attract and retain skilled professionals.