COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability
COP 16 was held in Riyadh from December 2-13 under the theme “Our Land. Our Future.” AN Photo
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Updated 15 December 2024
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COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

RIYADH: COP16 witnessed unprecedented financial pledges totaling over $12 billion for land restoration and drought resilience initiatives, with Saudi Arabia leading from the front.

Held in Riyadh from December 2-13 under the theme “Our Land. Our Future,” COP16 brought together over 196 countries and numerous international organizations, marking a crucial milestone in the fight against environmental challenges that threaten billions of people worldwide.

Funding pledges seen at the event included £10 billion from the Arab Coordination Group to finance global projects combating land degradation, desertification, and drought. 

Additional contributions included $1 billion each from the OPEC Fund and the Islamic Development Bank, and $150 million from Saudi Arabia.

A legacy of action and collaboration

Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley opened the conference with a call for intensified international collaboration to combat desertification, particularly in regions most affected by climate change.

“The Middle East, among the regions most impacted by these challenges, stands ready to lead through collaboration and innovation,” Al-Fadhley stated.

He emphasized Saudi Arabia’s Vision 2030 as a cornerstone of the Kingdom’s green agenda. 

This vision aims to restore 40 million hectares of degraded land, increase national reserves by 30 percent, and achieve a renewable energy mix of 50 percent by 2030. 

The Saudi Green Initiative, launched in 2021, has already led to the planting of 95 million trees and the restoration of 111,000 hectares of land. The Kingdom announced five new projects valued at $60 million to ramp up climate and environmental efforts as part of the SGI.

Outgoing COP15 President Alain-Richard Donwahi of Côte d’Ivoire handed over leadership with a message of urgency, while UNCCD Executive Secretary Ibrahim Thiaw underscored that nearly 40 percent of the Earth’s land is degraded, impacting over 3 billion people. 

He warned that failing to address land degradation could lead to intensified food insecurity, conflict, and forced migration.

At the Riyadh conference, the UN Convention to Combat Desertification estimated a need for at least $2.6 trillion in investments by 2030 to restore over 1 billion hectares of degraded land and enhance drought resilience. This translates to $1 billion in daily investments until 2030 to achieve global land restoration goals and combat desertification and drought.

The International Drought Resilience Observatory, which debuted its prototype at COP16, is set to be the world’s first AI-driven platform designed to help countries evaluate and improve their capacity to withstand severe droughts. 

This cutting-edge tool is an initiative of the International Drought Resilience Alliance, which recently welcomed Saudi Arabia as a member.




Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley. Screenshot

The Riyadh Policy Declaration

A major outcome of COP16 was the adoption of the Riyadh Policy Declaration, a document drafted by the newly formed Friends of the Chair group. 

This declaration provides a comprehensive framework for global land restoration, drought resilience, and sustainable land management. The initiative showcases Saudi Arabia’s dedication to fostering international cooperation and achieving tangible results in the fight against desertification.

The Kingdom’s Deputy Minister for Environment, Osama Faqeeha, highlighted the significance of this collaborative effort, saying: “The Friends of the Chair group ensures that the outcomes of COP16 are not just promises but actionable steps toward global sustainability”.

Faqeeha also underscored the urgent need for private sector investment to bridge the estimated $355 billion annual funding gap for global land restoration. 

“The restoration economy has the potential to unlock trillions in economic benefits, but it requires the commitment of all sectors,” Faqeeha stated.

Minister of Investment Khalid Al-Falih announced three major renewable energy projects developed in collaboration with French firms, emphasizing the Kingdom’s growing influence in the global green finance market.

“The future of finance is green, and Saudi Arabia is positioning itself as the global hub for sustainable investments,” Al-Falih said.

Innovative projects and sustainability initiatives

Saudi Arabia highlighted several transformative projects aimed at balancing economic growth with environmental preservation. 

The National Red Sea Sustainability Strategy is a flagship initiative to protect 30 percent of the Red Sea’s marine and coastal ecosystems by 2030. This strategy is expected to contribute SR33 billion ($8.78 billion) annually to the economy and create 120,000 jobs.

John Pagano, CEO of Red Sea Global, emphasized the project’s commitment to regenerative tourism and renewable energy. “We are planting 50 million mangrove trees and expanding coral reef protection, aligning with our vision of sustainable development,” Pagano said.

In a landmark announcement, King Abdullah University of Science and Technology launched the International Water Research Center to address global water scarcity and pollution challenges. 

The center will develop innovative water solutions in collaboration with the Ministry of Environment, Water, and Agriculture.

Saudi climate envoy Adel Al-Jubeir highlighted the link between land degradation and forced migration, noting that 100 million hectares of land are lost annually, exacerbating displacement and security crises. 

“When people cannot grow food, they migrate, leading to tension and conflict,” Al-Jubeir warned. The UNCCD’s Thiaw echoed these concerns, emphasizing that land restoration is crucial for global stability and security. 

The Great Green Wall, an African-led initiative was launched with an aim to restore 100 million hectares of degraded land, secured €11 million from the Italian government for landscape restoration in the Sahel, along with €3.6 million from the Austrian government to enhance coordination and implementation efforts across 22 African nations. This funding supports the GGW Accelerator, a UNCCD-backed initiative to create a greener and more prosperous Sahel.

Furthermore, the US, alongside partner countries and organizations, pledged nearly $70 million in investments to advance the Vision for Adapted Crops and Soils. This initiative aims to develop resilient food systems by promoting diverse, nutritious, and climate-adapted crops cultivated in healthy soils.

Thematic days and key dialogues

COP16 featured several thematic days addressing critical issues like sustainable agri-food systems, drought resilience, and rangeland protection, attracting more than 20,000 participants, with around 3,500 from civil society.

Agri-Food System Day coincided with World Soil Day, highlighting that unsustainable farming practices could lead to a 10 percent decline in global crop yields by 2050. 

Faqeeha called for redirecting harmful agricultural subsidies toward sustainable practices to prevent further degradation.

Youth and technology were at the forefront of COP16 discussions. Saudi Arabia’s thriving startup ecosystem, supported by initiatives like The Garage and Vision 2030, showcased how entrepreneurship can drive sustainability. 

COP16 saw the biggest youth participation to date, building on the UNCCD Youth Engagement Strategy and Action Plan, which seeks to give the younger generation a more prominent role in land and drought negotiations and action and provide technical and financial support for initiatives. 

Prince Khaled bin Alwaleed, CEO of KBW Ventures, highlighted the synergy between venture capital and sustainable development, while Ma’aden CEO Robert Wilt emphasized the role of responsible mining in enabling the global energy transition.

Global collaboration and regional leadership

The conference featured high-profile attendees, including UN Deputy Secretary-General Amina Mohammed, who called for scaled-up restoration efforts and stronger international cooperation. 

Mayor of Riyadh Faisal bin Abdul Aziz bin Ayyaf underscored Riyadh’s ambition to serve as a model for sustainable urban development.

Hungary’s representative praised COP16 for addressing gender equality, acknowledging the essential role of women in combating desertification. 

Discussions also highlighted the need for international cooperation to address shared challenges, such as sand and dust storms, drought, and land degradation.

A path forward 

Saudi Arabia’s successful hosting of COP16 demonstrated its commitment to shaping global environmental policies and fostering innovation. 

As attention turns to COP17 in Mongolia, the momentum generated in Riyadh is expected to drive sustained action toward land restoration, drought resilience, and a greener future for all.


‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF

‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF
Updated 15 sec ago
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‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF

‘Unlock the full potential of human capital by making healthcare an utmost priority,’ Saudi minister tells WEF
  • Faisal Alibrahim said healthy, resilient and productive human capital is the backbone of economic vitality
  • Participating in a session at Saudi House, he said health was a major part of Saudi Arabia’s Vision 2030 agenda

DUBAI: Healthy, resilient, and productive human capital is the backbone of economic vitality, Faisal Alibrahim, the Saudi minister of economy and planning, told a panel discussion at the World Economic Forum in Davos on Monday.

“However, we see an interesting story where we invest billions in energy, education and other solutions, but the investments in healthcare seem to be taking a second priority,” he added.

Part of Saudi House, a centralized hub serving as a meeting point for government officials, business leaders and other stakeholders at the forum, the panel was moderated by Faisal J. Abbas, editor-in-chief of Arab News.

It featured health experts such as Dr. Sania Nishtar, CEO of Gavi, the Vaccine Alliance; Sir Jeremy Farrar, chief scientist at the World Health Organization; Rayan Fayez, deputy CEO of NEOM; and Dr. Nouf Al-Numair, secretary-general of the Saudi Ministerial Committee for Health in All Policies.

Alibrahim said health was a major part of Saudi Arabia’s Vision 2030 agenda and it was “important for us to unlock the full potential of human capital in the Kingdom by making healthcare our utmost priority.”

Al-Numair said: “Saudi Arabia has taken concrete and very clear steps to adopt health in all policies.”

The initiative started “by issuing a royal decree that puts public health as a priority in all laws and regulations to prevent diseases and to increase the life expectancy of our population,” she added.

One of the committee’s policies is reducing the amount of salt and bread in foods, aimed at curbing hypertension, which affects cardiovascular health and, in turn, mortality.

“Eventually, (this) will increase the life expectancy in our population, so we have a clear understanding of what success looks like, which is linked to certain KPIs,” said Al-Numair.

A significant part of health is prevention and one of the most important tools for prevention is vaccination, Nishtar told the panel.

Although “there is a lobby of naysayers,” she added that her experience across countries has been varied with some showing a strong demand for vaccines.

“We are looking at our resource envelope, and we’re trying to raise more money, because the demand (for vaccines) from countries is so huge,” she said.

The WHO’s Sir Farrar called for a more horizontal structure with health and science built into different verticals — such as education and transport — along with a “governance structure, which ensures an inclusive voice for every ministry and every constituency.”

“Then, you have the opportunity to not have health as seen through the lens, frankly, of illness, but to have health seen through the lens of well-being,” he said.

He also asserted the need for countries to be able to adopt such a structure “either to address inequalities within the countries or inequalities between the countries.”

Health and well-being are a core part of the 15 sectors NEOM has identified as the “economic engines” of the futuristic city, said Fayez.

He said: “A lot of people hear about NEOM as this mega project or giga project, but it’s important to highlight that it is not the real estate or the infrastructure alone that makes NEOM.”

He explained that NEOM’s healthcare strategy is driven by four principles — prevention when possible, world-class treatment when needed, use of technology and sharing with the globe.


Saudi banking sector poised for stability with 10% lending growth: S&P Global

Saudi banking sector poised for stability with 10% lending growth: S&P Global
Updated 20 January 2025
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Saudi banking sector poised for stability with 10% lending growth: S&P Global

Saudi banking sector poised for stability with 10% lending growth: S&P Global
  • Mortgage lending in the Kingdom is set for growth, supported by lower interest rates
  • Credit losses are expected to range between 50 and 60 basis points over the next 12 to 24 months

RIYADH: Saudi Arabia’s banking sector is set to maintain profitability this year, with lending projected to grow by 10 percent, driven by corporate loans linked to Vision 2030 projects, according to a new analysis. 

In its latest report, S&P Global said that stable credit growth, fueled by lower interest rates and a supportive economic environment, will underpin the sector’s performance. 

The Saudi Arabia Banking Sector Outlook 2025 report projects that credit growth will bolster banks’ profitability, stabilizing the return on assets at 2.1 to 2.2 percent — aligning with its 2024 estimates. 

The growth is. part of the Kingdom’s spending on Vision 2030 programs, which has increased at an annual rate of 33.8 percent since the initiative’s inception, revealed Saudi Finance Minister Mohammed Al-Jadaan in a statement in November. 

“We expect Saudi banks will continue resorting to international capital markets to help fund growth related to Vision 2030,” said Zeina Nasreddine, credit analyst at S&P Global Ratings. “Banks are poised for stable profitability in 2025 as the volume effect compensates for lower margins.” 

The analysis aligns with data from the Saudi Central Bank, which reported a 13.33 percent year-on-year increase in bank loans to SR2.93 trillion ($782 billion) in November, the highest growth rate in 22 months. Corporate loans were the main driver, rising 17.28 percent to SR1.58 trillion. 

S&P Global’s report also said that mortgage lending in the Kingdom is set for growth, supported by lower interest rates and expanding demographics driving demand in the residential real estate sector. 

Credit losses are expected to range between 50 and 60 basis points over the next 12 to 24 months, supported by banks’ strong provisioning buffers. 

External funding needs will persist due to Vision 2030 investment requirements, though recent mortgage-backed securities initiatives could provide some relief, the agency said. 

“NIM (Net interest margin) is expected to drop by 20- 30 bps by the end of 2025 relative to 2023 as SAMA follows the Fed’s rate cuts to maintain its currency peg,” said S&P Global. 

The report anticipates nonperforming loan formation will remain slow in 2025, with NPLs increasing to 1.7 percent of systemwide loans by the end of the year, up from 1.3 percent in September, owing to fewer write-offs. 

S&P Global said that Saudi banks are well-capitalized, ensuring their creditworthiness, adding that earnings generation is sufficient to support asset growth, with the dividend payout ratio expected to average 50 percent in 2025. 

Saudi Arabia is projected to witness an average gross domestic product growth of 4 percent between 2025 and 2027, compared to 0.8 percent in 2024. 

The US-based agency further said that Vision 2030 initiatives are anticipated to drive medium-term non-oil growth, fueled by increased construction activities and a growing services sector supported by rising consumer demand and an expanding workforce. 

The report also highlighted the Kingdom’s booming tourism sector, with growth in the hospitality industry driven by improved visa processes and enhanced leisure options. 


Closing Bell: Saudi main index closes in the green, reaches 12,379

Closing Bell: Saudi main index closes in the green, reaches 12,379
Updated 20 January 2025
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Closing Bell: Saudi main index closes in the green, reaches 12,379

Closing Bell: Saudi main index closes in the green, reaches 12,379

RIYADH: Saudi Arabia’s Tadawul All Share Index edged higher on Monday, rising by 47.67 points, or 0.39 percent, to close at 12,379.54.

The benchmark index saw a total trading turnover of SR6.3 billion ($1.7 billion), with 116 of the listed stocks advancing, while 117 declined.

The MSCI Tadawul Index also gained 5.22 points, or 0.34 percent, to finish at 1,551.75. In contrast, the Kingdom’s parallel market, Nomu, ended the day lower, losing 281.88 points, or 0.89 percent, to close at 31,318.24, with 43 stocks advancing and 45 retreating.

Thimar Development Holding Co. emerged as the best-performing stock of the day, with its share price jumping 10 percent to SR51.70.

Other notable gainers included Arabian Pipes Co., which saw a 6.37 percent increase to SR13.36, and Middle East Specialized Cables Co., which rose by 4.95 percent to SR47.75.

Saudi Reinsurance Co. and ACWA Power Co. also posted solid gains, with their share prices surging by 4.82 percent and 4.41 percent, respectively, to SR58.70 and SR435.20.

Alamar Foods Co. saw the sharpest decline, with its share price dropping 3.33 percent to SR78.50. Nice One Beauty Digital Marketing Co. and Naseej International Trading Co. also recorded losses, with their shares slipping 2.91 percent and 2.60 percent, respectively, to SR56.80 and SR97.30.

Saudi Industrial Investment Group saw a 2.40 percent dip, closing at SR17.90, while Riyadh Cables Group Co. dropped 2.34 percent, settling at SR141.80.

Meyar Co. secured SR5.5 million in financing from Riyadh Bank to support its business expansion and enhance operational efficiency.

According to a bourse filing, the five-year financing agreement is part of the bank’s guarantee and bills program. The funds will be used to expand Meyar’s operations, develop production lines, and strengthen supply chains to boost overall efficiency. The investment aligns with the company’s strategic goals of increasing productivity and scaling its operations.

On the market, Meyar saw a 5.06 percent increase in its share price, reaching SR70.60.

Saudi Top Trading Co. announced the completion of construction at its West Coast Factory, which is set to begin trial production in the first quarter of 2025.

Located at the Rabigh PlusTech Park, the factory will start receiving raw materials, including polymer scrap, rubber, and synthetic wax, from Rabigh Refining and Petrochemical Co. This development follows a memorandum of understanding signed with Petro Rabigh in December 2022.

Under the MoU, Saudi Top Trading secured a 30-year lease on a site to produce 50,000 tonnes annually of polymer compounds, rubber, and waxes. With construction now completed, Saudi Top Trading is poised to enhance its production capabilities and leverage its partnership with Petro Rabigh.


THC partners with SIRC to boost sustainability, innovate waste solutions

THC partners with SIRC to boost sustainability, innovate waste solutions
Updated 20 January 2025
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THC partners with SIRC to boost sustainability, innovate waste solutions

THC partners with SIRC to boost sustainability, innovate waste solutions

JEDDAH: Saudi Investment Recycling Co. and the Kingdom’s the Helicopter Co. have partnered to boost sustainability efforts and develop innovative waste management solutions.

The two companies, operating under the Saudi Public Investment Fund, signed a memorandum of understanding that highlights their commitment to advancing sustainable aviation practices and reducing environmental impact, supporting the Kingdom’s transition to a circular economy in line with Vision 2030.

As part of its 2035 goals, SIRC aims to divert 85 percent of industrial hazardous waste from landfills through recycling and treatment.

The waste sector also targets diverting 60 percent of construction and demolition waste, with 12 percent recycled, 35 percent reused, and 13 percent treated.

Under the partnership, the companies will collaborate on technology-driven operations and expand THC’s services into new sectors that align with sustainability objectives, according to the Saudi Press Agency.

Ziyad Al-Shiha, SIRC CEO, described the partnership as a step toward driving innovation, cutting emissions, and ensuring long-term environmental safety for the sector.

“This collaboration strengthens the Kingdom’s leadership in the global green economy and paves the way for a more sustainable future,” Al-Shiha said, adding that the deal aligns with broader efforts to position Saudi Arabia as a leader in sustainability and green economic initiatives.

Commenting on the collaboration, Arnaud Martinez, CEO of THC, said the initiative is part of his company’s strategy to minimize its carbon footprint.

Martinez added that the agreement is about turning ambitious ideas into tangible achievements that contribute to a sustainable future for aviation and the environment.

THC posted on its X account: “We are pleased to sign a memorandum of understanding with the Saudi Investment Recycling Co., with the aim of enhancing common interests in the waste management and recycling sector, and various environmental sectors in line with achieving the goals of Vision 2030.”

The investment recycling company, the largest industrial waste management company in the Gulf Cooperation Council with a fully integrated platform to handle, store, transport, treat, and safely dispose of the hazardous waste generated by industries, plans to divert 100 percent of municipal solid waste, recycling 81 percent and processing 19 percent for waste-to-energy purposes.

These efforts align with the ambitious targets set by the Waste Management National Regulatory Framework for 2035, including a 13-million-tonne reduction in carbon dioxide emissions, attracting SR6 billion ($1.6) billion in foreign investments, creating 23,000 jobs, and contributing $9.9 billion to the national gross domestic product.


Saudi rent now, pay later firm Rize closes $35m in equity and debt funding

Saudi rent now, pay later firm Rize closes $35m in equity and debt funding
Updated 20 January 2025
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Saudi rent now, pay later firm Rize closes $35m in equity and debt funding

Saudi rent now, pay later firm Rize closes $35m in equity and debt funding
  • Company also plans to enhance its technological offerings, including automating leasing processes
  • Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024

RIYADH: Saudi real estate technology company Rize has closed an SR132 million ($35 million) “Series A” funding round to expand its presence beyond the nation’s capital. 

The round included a mix of equity and debt. funding and was led by Raed Ventures, with participation from SEEDRA Ventures, Aqar Platform, JOA Capital, Nama Ventures, and HALA Ventures. 

The funding also featured a debt financing partnership with Partners For Growth to bolster Rize’s financial capabilities. 

Given the high down payment required for tenants to secure a rental property in the Kingdom, the company has developed a model that enables tenants to pay annual rent in 12 monthly installments, while property owners receive the full amount upfront. 

The rise in Saudi Arabia’s real estate financing underscores the sector’s increasing importance in the Kingdom’s economy, creating a strong foundation for innovative solutions like Rize’s “rent now, pay later” model. 

“This investment represents a major turning point in our journey and reflects the investors’ confidence in our vision to develop the leasing sector,” said Ibrahim Balilah, CEO of Rize. 

Founded in 2021 by Balilah and Mohammed Al-Fraihi, the Riyadh-based company aims to promote sustainability in the Saudi rental market and claims to have facilitated over SR500 million in total rental value through its platform. 

The Series A investment will support Rize’s growth strategy, including expanding its presence beyond Riyadh into the Eastern and Western regions of Saudi Arabia. 

The company also plans to enhance its technological offerings, including automating leasing processes via its app to improve user experience. 

Al-Frahi, co-founder and chief technology officer of Rize, said: “We have worked hard to develop our internal technologies to enable the automation process and make the rental experience smoother. This investment round is a significant step to enhance our technologies and accelerate the company’s growth.” 

Aqar Platform, one of the key investors and a major player in the proptech sector, plans to integrate Rize’s RNPL service into its platform, offering tenants more flexibility in payment options. 

The collaboration is expected to enhance the leasing process and provide innovative solutions for users. 

Omar Al-Majdouie, co-founder at Raed Ventures, said: “We believe in Rize’s ability to bring about a transformative change in the real estate leasing sector, not only by offering innovative services but also by enabling digital transformation in this important field.” 

Waleed Al-Barrak, principal at SEEDRA Ventures, compared Rize’s growth trajectory to that of successful regional fintech leaders, like Tabby and Tamara. 

“Rize is transforming the Saudi rental market and redefining the standards of how people rent. Its extraordinary growth mirrors the success stories of industry leaders,” Al-Barrak said. 

Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024, reflecting a 13.29 percent year-on-year increase, according to data from the Saudi Central Bank. 

The growth was driven by retail and corporate lending, with corporate loans jumping 22 percent to SR189.6 billion, while lending to individuals accounted for 78 percent of the total at SAR 656.88 billion, growing at 11.02 percent annually. 

Real estate loans now make up nearly 30 percent of the total loan portfolio of Saudi banks, which stood at SR2.85 trillion by the end of the third quarter.