More funding needed for global land conservation, say experts at COP16

More funding needed for global land conservation, say experts at COP16
Princess Noura highlighted the persistent challenges in quantifying financial and capacity gaps for land restoration measures.
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Updated 07 December 2024
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More funding needed for global land conservation, say experts at COP16

More funding needed for global land conservation, say experts at COP16
  • Princess Noura bint Turki Al-Saud argues that land restoration can yield immense economic, social returns
  • ‘Nature economy’ can create $10tn in business, 395m jobs by 2030, says economist Tillem Burlace

RIYADH: Experts attending COP16 here have emphasized the need to allocate more funds for sectors critical to land conservation and nature restoration because of the potential for greater global economic development and job creation.

Climate financing has nearly doubled over the past decade, with spending at about $1.3 trillion over the period 2021 to 2022, said Tillem Burlace, regional lead at 1t.org, World Economic Forum.

Burlace, who was speaking to Arab News on the sidelines of COP16, which began on Dec. 2 and ends Dec. 11, said that funds were not being allocated efficiently.

She said most of this financing flowed to energy (44 percent) and transport (29 percent), which remain “key” to reaching net-zero goals. However, investments in agriculture, forestry, and other land use have lagged, receiving just 4 percent.

Burlace stressed that this imbalance poses a significant challenge to achieving land degradation neutrality and drought resilience, two critical goals central to the UN Convention to Combat Desertification agenda at COP16 and beyond.

She said that research by the WEF indicates that transitioning to a sustainable “nature economy” could unlock $10 trillion in business opportunities and create 395 million jobs by 2030.

“Every dollar invested in restoring degraded lands brings between $7 to $30 in economic returns,” she said.

Burlace added that innovative financing models are needed to help aggregate capital while minimizing risks.

Princess Noura bint Turki Al-Saud said that the UNCCD often operates with limited political backing, insufficient financing, and fragmented implementation.

Speaking during a panel session at COP16, Princess Noura, a founding partner at Aeon Strategy, emphasized the challenges facing the convention.

“To achieve the convention’s transformative potential, it must be elevated as a political priority, fully integrated into international development plans, and backed by substantial financial and technical commitments.”

Princess Noura highlighted the persistent challenges in quantifying financial and capacity gaps necessary to implement effective land-restoration measures.

“The financial-needs assessment reveals a significant gap (because) of the 63 National Drought Plans evaluated, only nine countries have quantified their financial needs,” she explained.

Princess Noura said that in terms of reporting resource needs under the UNCCD’s progress indicators, only 13 of 38 countries have expressed their requirements in financial terms.

This lack of financial data, she added, reflects broader difficulties in calculating the costs of restoration, capacity building, and governance measures.

Princess Noura argued that investing in land restoration yields immense returns. Research shows that every dollar spent on land restoration can generate up to $30 in returns, she said.

“This is driven by the critical role that healthy land ecosystems play in global development.”

Princess Noura pointed out that half of the world’s gross domestic product depends directly and indirectly on healthy soil ecosystems, which underpin agriculture, food systems, and economic stability.

“Investing in land restoration is not just an environmental imperative — it is an economic necessity,” she stressed.

Capacity building across the project cycle was crucial, but it should be accompanied by targeted financial and technical support, Princess Noura said.

Her remarks reflect the growing consensus at COP16 on the importance of integrating sustainability into global economic and development policies.

Nigel Topping, the UN Climate Change High-Level Champion from the COP26 Presidency, emphasized the importance of translating environmental and social needs into financial terms to mobilize meaningful action from key decision-makers.

“If we don’t translate hectares or people into financial numbers, then we will not get CEOs, ministers — particularly ministers of finance — and fund managers around the table,” Topping said.

He underscored the importance of broadening the scope of financial needs assessments. “In the climate space, we spent a very long time obsessing about a small part of the need — the multilateral finance need,” Topping said.

It turns out this is only about 4 percent of the total finance that needs to mobilize, he added.

“Having a needs assessment showing the whole amount is very important in terms of setting a normative target, which we can then go about problem-solving,” Topping said.

He said such assessments were not only important for setting clear targets but also aligning public and private sector efforts to address systemic challenges including land degradation, drought, and biodiversity loss.


Australia-Saudi Mining Forum to launch in 2025, says business council head

Australia-Saudi Mining Forum to launch in 2025, says business council head
Updated 28 sec ago
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Australia-Saudi Mining Forum to launch in 2025, says business council head

Australia-Saudi Mining Forum to launch in 2025, says business council head
  • Bilateral trade between Saudi Arabia and Australia has grown significantly, reaching $4 billion
  • Business council is actively working to further increase this figure

RIYADH: Saudi Arabia and Australia are poised to enhance cooperation in the mining sector with the launch of an inaugural bilateral forum this year, a senior official has announced. 

Speaking on the sidelines of the Future Minerals Forum in Riyadh, Sam Jamsheedi, the president of the Australia-Saudi Business Council and Forum, highlighted the event’s potential to boost bilateral exploration and investment opportunities in the mining industry. 

He said that the inaugural Australia-Saudi Mining Forum would take place this year, marking a significant step in enhancing cooperation between the two countries.  

“One of the main pillars of Saudi Vision 2030 is mining and resources. And one of Australia’s biggest industries is mining. This forum is dedicated solely to mining opportunities for both sides, which is also supported by both governments as well. I believe this forum would kind of ignite another cycle of boom in both nations’ productivity,” Jamsheedi said. 

Jamsheedi pointed to Australia’s strong presence at the FMF, with over 300 Australian participants attending and the country hosting its first pavilion at the event. 

He added that events like FMF are crucial to elevate and strengthen the bilateral relationship between Australia and the Kingdom.  

Jamsheedi also elaborated on the Australia-Saudi Business Council’s efforts over the past two years to facilitate trade and investment between the two nations. 

“The council is being formed for two years. It is the official business council for both sides. Our mandate is to represent Saudi Arabian opportunities in Australia and also be the voice for Australians who come to Saudi Arabia,” he said. 

Jamsheedi added that bilateral trade between Saudi Arabia and Australia has grown significantly, reaching $4 billion, with a $600 million boost in the past year due to the council’s support. 

The business council is actively working to further increase this figure, focusing on key sectors such as mining, agriculture, food and beverages, infrastructure, technology, and services. 

As Saudi Arabia aims to attract $100 billion in foreign direct investments by 2030, Jamsheedi emphasized the importance of hosting more events like FMF and raising awareness among Australian investors about the opportunities in the Kingdom. 


Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 

Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 
Updated 1 min 31 sec ago
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Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 

Partnership with Saudi Arabia will address global critical mineral challenges, says UK minister 

RIYADH: Saudi Arabia and the UK are deepening mining ties as the British government seeks to secure critical minerals for industries such as artificial intelligence and emerging technologies. 

On Jan. 14, the two nations signed an agreement to collaborate on mineral resource development, emphasizing sustainable practices, technology transfer, and economic growth. 

In an interview with Arab News on the sidelines of the ongoing Future Minerals Forum, the UK Minister for Industry, Sarah Jones, highlighted the growing collaboration between the two Kingdoms. 

She emphasized the importance of partnerships in the critical minerals sector, which are vital for advancements in AI, green energy transitions, and emerging technologies. 

“The quantity of critical minerals we’re going to need in the future is significantly bigger than we have today, and I think Saudi Arabia has taken quite a leadership role with the Future Minerals Forum, convening so many countries to come together and talk about this,” Jones said. 

The minister outlined the challenges and opportunities as both countries work to address the surging global demand for essential minerals. She expressed confidence in the potential of the UK-Saudi partnership to tackle these challenges effectively. 

The UK’s expertise in mining finance, as well as it universities — renowned for research and technical knowledge — position it as a valuable partner for Saudi Arabia in mining and exploration.

Jones emphasized that Britain’s focus on mining finance, combined with its global academic reputation, strengthens the collaboration. 

“We wanted to have a relationship where we work together on some of these challenges, and I think this is the start of what will be a strengthening relationship going forward,” she said. 

The minister expressed excitement about future collaborations, including sustainable mining practices, innovative financing structures, and technological advancements to meet the growing demand for critical minerals. 

The UK government, under Prime Minister Keir Starmer, is taking a proactive approach to shaping its industrial future, especially in sectors integral to the global green transition and technological progress. 

“We’re looking at things slightly differently,” said Jones. “We’re trying to be more proactive in devising what are the industries of the future that we need in the UK. Where do we get our supply chains from? How do we make sure we’re secure?” 

As part of its new industrial strategy, Britain is prioritizing critical minerals, recognizing their essential role in advanced manufacturing, green energy, and AI. 

Jones highlighted the government’s determination to position the UK as a key player in the global minerals market and equip domestic industries for future demands. 

“We’re setting the directions of all of our companies and our businesses know the sectors that we want to grow and the direction that we want to go in,” she said. 

To support this strategy, the British government has established funding mechanisms like the National Wealth Fund and UK Export Finance to mitigate risks associated with critical minerals mining, technology development, and sustainable practices. 

In addition to the UK-Saudi partnership, Jones discussed opportunities for joint investment in mining projects in third countries. 

She proposed collaboration on initiatives in Africa, where both nations have significant interests and could combine resources to meet growing mineral demands. 

“Can the UK and Saudi Arabia have a project in an African country? We have several kinds of ideas, thoughts that we could do together,” she said. 

Jones also highlighted the rising interest in mining within the UK, citing developments such as lithium and tin mining in Cornwall, which could support both the UK’s industrial needs and the global green transition. 

The conversation touched on the ethical and environmental challenges associated with mining. Jones acknowledged the industry’s troubled history, including issues of worker mistreatment, environmental damage, and resource mismanagement. 

As demand for minerals grows, she stressed the need for mining practices to evolve, becoming more sustainable and equitable. 

“Historically, mining has been difficult in terms of the way that countries and people have been treated,” Jones said. “We’ve got to make sure where mining is sustainable and helping the countries that are supporting those mines, we have to make sure we’re creating wealth there and these things are hard, and that’s why countries need to work together.” 

She concluded by emphasizing the importance of global cooperation in addressing critical mineral challenges. 

“I think we can talk to each other between Saudi Arabia and ourselves about how some of these funding mechanisms work, how we support each other’s companies, and how we develop and help other countries to, to develop what they need as well. But it’s a huge challenge and that’s why we’re here,” Jones said.


Closing Bell: Saudi main index closes in green at 12,212

Closing Bell: Saudi main index closes in green at 12,212
Updated 15 January 2025
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Closing Bell: Saudi main index closes in green at 12,212

Closing Bell: Saudi main index closes in green at 12,212

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 39.49 points, or 0.32 percent, to close at 12,212.24.

The total trading turnover of the benchmark index was SR7.17 billion ($1.91 billion), as 116 of the listed stocks advanced, while 114 retreated.  

The MSCI Tadawul Index increased by 9.44 points, or 0.62 percent, to close at 1,526.65.

The Kingdom’s parallel market Nomu dipped, losing 17.28 points, or 0.06 percent, to close at 31,299.81.

This comes as 47 of the listed stocks advanced, while 34 retreated.

The best-performing stock was Nice One Beauty Digital Marketing Co., with its share price surging by 9.94 percent to SR59.70.

Other top performers included the Power and Water Utility Co. for Jubail and Yanbu, which saw its share price rise by 5.77 percent to SR55, and United International Transportation Co., which saw a 4.86 percent increase to SR84.10.

The worst performer of the day was Astra Industrial Group, whose share price fell by 5.46 percent to SR190.60.

Saudi Reinsurance Co. and Riyadh Cables Group Co. also saw declines, with their shares dropping by 3.53 percent and 3.05 percent to SR57.40 and SR146, respectively.

On the announcements front, Al Rajhi Bank has successfully completed its offer of US dollar-denominated additional Tier 1 capital sustainable sukuk, raising $1.5 billion. 

The issuance, with a par value of $200,000 per sukuk and totaling 7,500 sukuk units, will be settled on Jan. 21, according to a Tadawul statement.

Offering an annual return of 6.25 percent, the perpetual sukuk includes a callable feature after five years. It will be listed on the London Stock Exchange’s International Securities Market, adhering to Regulation S under the US Securities Act of 1933. 

The sukuk is aimed at eligible investors within Saudi Arabia and internationally, contributing to the bank’s sustainable financing initiatives.

Al Rajhi ended today’s trading session surging by 0.21 percent to SR96.20.


WEF: War, disinformation, and climate dominate global threats in 2025

WEF: War, disinformation, and climate dominate global threats in 2025
Updated 15 January 2025
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WEF: War, disinformation, and climate dominate global threats in 2025

WEF: War, disinformation, and climate dominate global threats in 2025
  • More than 900 global leaders highlight escalating geopolitical tensions, environmental crises and misinformation as critical issues shaping the year ahead
  • Davos to begin Jan. 20 amid fragmented global order marked by growing power rivalries, weakened multilateralism

LONDON: Escalating wars, rising disinformation, and intensifying climate challenges rank as the most pressing global threats for 2025, according to the World Economic Forum’s Global Risk Report, released Wednesday ahead of the Davos annual meeting.

Based on insights from 900 global leaders in business, politics and academia, the report highlights escalating geopolitical tensions, environmental crises and misinformation as critical issues shaping the year ahead.

“Rising geopolitical tensions, a fracturing of global trust and the climate crisis are straining the global system like never before,” said Mirek Dusek, WEF managing director.

“In a world marked by deepening divides and cascading risks, global leaders have a choice: To foster collaboration and resilience, or face compounding instability. The stakes have never been higher.”

State-based armed conflicts are flagged as the most immediate concern for 23 percent of respondents, with wars in the Middle East, Sudan and Ukraine driving global instability.

The forum will host a historic gathering of Middle Eastern leaders, including representatives from Iran, Syria, Yemen and Gulf countries, to discuss prospects for peace amid hopes of a ceasefire between Hamas and Israel after 15 months of devastating war that has killed tens of thousands of Palestinians.

Donald Trump, set to be sworn in as the 47th US president on Jan. 20, has vowed to end the war in Ukraine. He will deliver a virtual address to the forum on Jan. 23. Ukrainian President Volodymyr Zelensky will also attend and deliver a speech on Jan. 21.

“From conflicts to climate change, we are facing interconnected crises that demand coordinated, collective action,” said Mark Elsner, WEF’s head of the Global Risks Initiative, who urged world leaders to make “renewed efforts to rebuild trust and foster cooperation.” 

While conflicts rank as the most immediate threat, the survey highlights the climate crisis as the dominant risk of the next decade. Environmental risks — including extreme weather, biodiversity loss and critical changes to Earth’s systems — account for three of the top four long-term global concerns.

In 2024, global warming hit a record 1.54 degrees Celsius above pre-industrial levels, triggering catastrophic weather events, such as the Los Angeles wildfires, devastating floods in Spain caused by the DANA weather phenomenon and unprecedented rainfall across the Middle East, which triggered floods in the Arabian Peninsula and Sahara Desert for the first time in half a century.

“The climate and nature crisis requires urgent attention and action,” said Gim Huay Neo, the WEF’s managing director for the Center for Nature and Climate.

Two technology-related concerns ranked next on the list of global threats: “Misinformation and disinformation” and the “adverse outcomes of AI technologies.”

The survey, conducted between September and October, noted rising anxieties about misinformation. These concerns have intensified following Donald Trump’s election victory and his alignment with tech leaders like Elon Musk and Mark Zuckerberg, who are reportedly advocating for deregulation policies expected to benefit the tech industry.

It coincides with Zuckerberg’s recent decision to scale back fact-checking and content moderation across Meta’s platforms, a move widely criticized by experts as an appeasement of Trump, whose return to the White House will overlap with the forum’s opening.

Organizers are expecting 60 heads of state and government to attend, alongside chief executives and campaigners. Several ministers and business leaders from Saudi Arabia are also expected to take part.

The WEF’s report found that 64 percent of experts foresee a fragmented global order dominated by competition among middle and great powers, with multilateralism under significant strain.

Against this backdrop, the forum’s theme, “A Call for Collaboration in the Intelligent Age,” highlights the need for renewed cooperation, even as Trump’s anticipated policy shifts could undermine collective efforts on critical global issues, including the climate crisis.


Private sector partnerships key to mining sector growth, says Al-Jadaan

Private sector partnerships key to mining sector growth, says Al-Jadaan
Updated 15 January 2025
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Private sector partnerships key to mining sector growth, says Al-Jadaan

Private sector partnerships key to mining sector growth, says Al-Jadaan

RIYADH: The mining sector’s success in Saudi Arabia hinges on strong private sector partnerships, according to Finance Minister Mohammed Al-Jadaan. Given the significant investments and expertise required, the government alone cannot drive the sector’s growth, he said.

Speaking on the second day of the Future Minerals Forum in Riyadh, Al-Jadaan emphasized the need for collaboration between public and private sectors to unlock the full potential of the mining industry. The forum, which runs from Jan. 14-16, aligns with Saudi Arabia’s ambitious goal to increase the mining sector’s contribution to the nation’s gross domestic product from $17 billion to $75 billion by 2035.

It also supports the country’s Vision 2030 objective of establishing mining as a critical pillar of the industrial economy.

“This is a very complex industry that requires significant investments that, you know, the government alone cannot do. It requires significant know-how that the government alone cannot do, and you need to make sure that you actually partner with the private sector to enable this sector,” Al-Jadaan said.

Al-Jadaan outlined three key enablers for the mining sector's development: cross-sectoral alignment, the strategic use of data, and a competitive regulatory framework.

“If you want to do the right thing within mining, it is not the mining alone that will make it. You will need to make sure that you are aligning multiple sectors together — energy, mining, logistics, and possibly even a few others,” he explained.

He pointed to the National Industrial Development and Logistics Program as a successful example of how integrated sectors can collectively drive progress.

On the importance of data, Al-Jadaan emphasized its foundational role in shaping the sector's future. “There was real focus on making sure that we make an investment early on in data relating to mining, including specific technicalities and budgeting for supporting surveys throughout the mining sectors, and actually providing even support to companies who are coming for exploration,” he said.

The minister also highlighted the necessity of a stable and investor-friendly regulatory environment. “These are long-term investments investors would need to make. You know, we need to have predictability, confidence in the regulatory framework, and we need to ensure it is investor-friendly. They must be able to obtain their licenses on time and with certainty,” he added.

Al-Jadaan further acknowledged the challenges faced by emerging economies, particularly those in the Global South, which possess abundant mineral resources but often lack the capital, expertise, and infrastructure to exploit them fully. He suggested that with the right support, these nations could leverage their mineral wealth not only for industrial growth but as a key driver of broader economic development.

“With the right setup, they can utilize these resources not only for the mineral and metal industries but as part of a package for economic development,” he said, stressing that targeted support such as subsidized logistics and services could unlock the mining potential of these nations.

In a related panel discussion, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef highlighted Africa’s critical role in the global energy transition. He pointed out the disparity between the continent’s vast resource potential and its actual contribution to the market.

“Today, investment needs to happen not only in extraction but also in infrastructure. We have seen great assets today in Africa are falling behind because of infrastructure challenges, not mining challenges,” Alkhorayef noted.

As the Future Minerals Forum continues, the collaboration between the private sector and government remains central to advancing the sector, not only in Saudi Arabia but across the global mining landscape.