Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister

Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister
Prince Abdulaziz bin Salman speaking at the 12th Saudi Arabia Smart Grid 2024 Conference in Riyadh. SPA
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Updated 17 December 2024
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Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister

Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister
  • Prince Abdulaziz bin Salman made the announcement at the opening of the 12th Saudi Arabia Smart Grid 2024 Conference in Riyadh
  • Energy ministry is advancing plans to establish nine control centers by 2026

RIYADH: Saudi Arabia is working to automate 40 percent of its electricity distribution network by the end of 2025, having already achieved 32 percent of this target, according to the minister of energy.

Prince Abdulaziz bin Salman made the announcement at the opening of the 12th Saudi Arabia Smart Grid 2024 Conference in Riyadh, held under the theme “Energy and Sustainability.”

Automating an electricity distribution network uses technologies like smart meters and real-time monitoring to improve efficiency, and also facilitates the integration of renewable energy – which aligns with Vision 2030 goals of producing 50 percent of the Kingdom’s electricity using renewable sources.

In his opening remarks, Prince Abdulaziz highlighted the key role of smart grid technologies in transforming energy systems, focusing on smart meters, automation, and enhanced communication to improve electricity production, transmission, and consumption.

The minister highlighted Saudi Arabia’s progress under Vision 2030 saying: “More than 11 million smart meters have been installed across the Kingdom since 2021, contributing to improved energy consumption efficiency and enabling consumers to track their consumption in real time through smart applications, thereby enhancing their ability to make more informed decisions about electricity conservation.”

This large-scale deployment has empowered consumers with the ability to monitor their real-time energy consumption through advanced applications, enabling them to make informed decisions to optimize electricity use and promote energy conservation, SPA reported.

Similar efforts were seen in different nations in the Gulf Cooperation Council with the UAE’s Dubai Electricity and Water Authority and Qatar’s Kahramaa advancing smart grid initiatives to enhance energy infrastructure. 

DEWA’s multi-billion project integrates AI, blockchain, and IoT for seamless communication and automation, supporting smart city goals. Meanwhile, Kahramaa’s smart meters, covering 450,000 units, improve monitoring, reduce operational costs, and support sustainability by optimizing energy use and integrating clean energy.

Discussing automation efforts, Prince Abdulaziz revealed that the ministry is advancing plans to establish nine control centers by 2026. 

These facilities will be equipped with state-of-the-art technologies to enable real-time monitoring and precision management of the electricity distribution network. 

These developments aim to enhance network stability and performance, ensuring Saudi Arabia remains at the forefront of technological innovation in energy management. 

The minister also addressed the challenges posed by renewable energy sources, particularly their sensitivity to weather conditions. To mitigate these challenges and maintain grid reliability, the Kingdom is enhancing its energy storage capabilities.

Current plans target a battery storage capacity of 26 gigawatt-hours, with the goal of increasing this to 48 GWh by 2030.

Regarding the efforts to enhance the stability and efficiency of the national grid, which is the largest in the Middle East and Africa, the minister said: “We continue to expand transmission and distribution networks and develop flexible transmission system technologies that contribute to enhancing energy exchange and reducing losses.”

He added: “Additionally, four regional control centers have been established, along with a national control center, whose advanced systems enable efficient monitoring and operation of the networks, thereby strengthening the security and resilience of the electrical grid.”

Following the inauguration of the conference, Prince Abdulaziz oversaw the signing of several agreements and memorandums of understanding aimed at further advancing energy solutions across the Kingdom. 

He also honored the winners of the Energy Hackathon, which saw participation from more than 60 participants. The contestants presented creative and innovative projects focused on energy storage efficiency and sustainability, reflecting the growing emphasis on nurturing talent and fostering innovation in the energy sector.

The three-day conference is set to host discussions on over 40 scientific papers, showcasing the latest research, technologies, and sustainable solutions in the field of smart grids. 

These talks will spotlight the role of smart grid systems in enabling digital transformation, enhancing renewable energy solutions, and creating new opportunities for private sector participation.

Launched in Jeddah in 2011, SASG began as the first specialized event on smart grid technologies with global participation. Now an annual fixture in Saudi Arabia, it has attracted over 55,000 participants and 280 sponsors and exhibitors, offering a platform to showcase products, services, and innovations.


Saudi Exchange unveils new instrument to trade global shares locally 

Saudi Exchange unveils new instrument to trade global shares locally 
Updated 07 July 2025
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Saudi Exchange unveils new instrument to trade global shares locally 

Saudi Exchange unveils new instrument to trade global shares locally 

RIYADH: Saudi Arabia has introduced a new financial instrument that gives investors in the Kingdom direct access to shares of foreign companies listed on global markets. 

The Saudi Exchange on July 7 launched its first Saudi Depositary Receipts, allowing international equities to be traded locally in Saudi riyals. 

The move marks the debut of depositary receipts in the Kingdom’s financial market and is seen as a strategic leap toward reinforcing Riyadh’s position as a global financial center, in line with the Financial Sector Development Program and broader Vision 2030 ambitions. 

In a release, Tadawul stated: “SDRs are highly liquid and flexible, enabling issuers to transfer securities between the Saudi financial market and foreign markets by converting the SDRs into shares in the foreign market, thus enabling the company’s shares to be traded on two different financial markets.” 

It described the launch as “a pivotal step toward consolidating the Kingdom’s position as a global financial center.” 

This development is not merely a technical upgrade; it reflects a broader strategic effort to modernize and globalize Saudi Arabia’s capital markets. 

Since the launch of Tadawul Group’s post-initial public offering transformation, the Kingdom has introduced a series of reforms aimed at enhancing market sophistication and accessibility.  

These include inclusion in global emerging market indices such as MSCI, FTSE, and S&P Dow Jones; the rollout of derivatives trading; the simplification of Qualified Foreign Investor frameworks; and the acceleration of sector-diverse IPO pipelines. 

The introduction of SDRs builds on this momentum by bridging local and international investment landscapes — effectively bringing Wall Street- or London-listed equities to Riyadh’s trading screens. 

What are SDRs and why do they matter? 

A depositary receipt is a financial instrument that represents shares in a foreign company but is traded on a local exchange in the domestic currency. 

In the case of SDRs, this means investors in the Kingdom can gain exposure to foreign firms — such as global technology giants, industrial leaders, or energy companies — without needing to open a brokerage account abroad. 

Unlike traditional cross-border investing, SDRs enable seamless trading, clearing, and settlement through Tadawul, all denominated in Saudi riyals. 

This makes it easier for local investors to access global markets. They can buy international shares through a familiar domestic platform and trade using local brokers. It also helps them diversify their portfolios without dealing with foreign accounts. Most importantly, they remain under the protection of Saudi Arabia’s legal and regulatory framework. 


Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 
Updated 07 July 2025
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Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced 0.26 percent, or 29.73 points, to close at 11,345.46 on Monday. 

The total trading volume reached SR5.5 billion ($1.4 billion), with 132 companies experiencing growth and 116 declining. 

The MSCI Tadawul 30 Index edged up 0.21 percent to 1,454.38, while the parallel market Nomu posted a stronger performance, gaining 0.75 percent to finish at 27,462.84. 

Among the top performers, Tourism Enterprise Co. surged 9.64 percent to SR0.91. 

Ayyan Investment Co. rose 4.28 percent to SR14.38, while Sumou Real Estate Co. gained 4.18 percent to close at SR42.82. 

Buruj Cooperative Insurance Co. advanced 4.11 percent to SR18.99, and Tamkeen Human Resources Co. climbed 3.71 percent to end at SR55.90. 

On the losing side, Miahona Co. recorded the steepest decline, falling 3.35 percent to SR25.98.  

Umm Al-Qura Cement Co. dropped 3.21 percent to SR16.59. Saudi Kayan Petrochemical Co. slipped 2.31 percent to SR5.07. 

Almarai Co. decreased 2.05 percent to SR50.15, and Halwani Bros. Co. fell 2.04 percent to SR45.20. 

On the announcement front, Riyad Bank stated that it had commenced the offer of its US dollar-denominated Tier 2 trust certificates under its international trust certificate issuance program. 

The issuance will be conducted through a special-purpose vehicle and is targeted at eligible investors in the Kingdom and internationally. 

The certificates will have a minimum subscription of $200,000, with increments of $1,000 in excess thereof, and a par value of $200,000. They will have a maturity of 10 years, callable after five years. 

The amount and terms of the offer will be determined subject to market conditions. 

Riyad Bank has mandated DBS Bank, HSBC, and J.P. Morgan Securities, as well as Merrill Lynch, Mizuho, Riyad Capital, SMBC, and Standard Chartered as joint lead managers. 

The certificates will be listed on the London Stock Exchange’s International Securities Market. Riyad Bank shares closed at SR28.90, down 0.48 percent. 

Alinma Bank announced its intention to issue US dollar-denominated certificates under its own trust certificate issuance program, as per a board resolution dated May 13, which delegated authority to its chief executive officer. 

The offer is also expected to be conducted through a special-purpose vehicle and directed at eligible investors in Saudi Arabia and abroad. 

The issuance will be subject to regulatory approvals and compliance with applicable laws and regulations. 

Alinma Bank has appointed Abu Dhabi Islamic Bank, Alinma Capital, and Dubai Islamic Bank, as well as Emirates NBD, Goldman Sachs, J.P. Morgan, and Standard Chartered as joint lead managers. 

The amount and terms of the offer will be determined by market conditions. Alinma Bank shares ended the session at SR27.20, falling 0.87 percent. 


Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals
Updated 07 July 2025
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Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals
  • Biofuel Co. to supply B100 biodiesel as a direct alternative to fossil diesel
  • It will help reduce the project’s carbon footprint

JEDDAH: Saudi Arabia’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions. 

The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported. 

The agreement supports Saudi Arabia’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects. 

In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase. 

“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said. 

Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030. 

Biofuel Co. is Saudi Arabia’s first and only producer of standard-compliant biofuel. Biofuel Co.

Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals. 

Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.” 
 
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.” 

Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones. 

The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year. 

The project aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century. 


UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai
Updated 07 July 2025
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UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

JEDDAH: Trade and investment relations between the UAE and Cuba are expected to deepen following the inaugural session of the Joint Economic Committee, which convened in Dubai to boost cooperation across multiple sectors, including biotechnology, renewable energy, and tourism.

Organized under the framework of the trade, economic, and technical cooperation agreement signed earlier by both nations, the session marked a significant step forward in advancing bilateral economic engagement.

The committee meeting was co-chaired by Abdullah Ahmed Al-Saleh, undersecretary of the UAE Ministry of Economy, and Carlos Luis Jorge Mendez, Cuba’s first deputy minister of foreign trade and foreign investment. According to the UAE’s official news agency WAM, discussions centered on enhancing collaboration in agriculture, food security, infrastructure, transportation, logistics, cultural industries, healthcare, and pharmaceuticals.

Non-oil trade between the two countries has been steadily rising. It reached over $39.1 million in 2024—up more than 2 percent from the previous year and 46.4 percent compared to 2022, WAM reported. The agency added that trade during the first quarter of 2025 rose by 5.6 percent compared to the same period in 2024, and by over 25 percent from the fourth quarter of that year. More than 825 Cuban brands are currently operating in the UAE market.

According to WAM,  Al-Saleh said that bilateral ties continue to advance steadily, particularly in the economic and commercial spheres, adding: “This reflects the visionary leadership of both nations in fostering growth and prosperity and in serving their shared interests.”

He continued: “The first session of the Joint Economic Committee between the two countries marks a key milestone in enhancing economic and investment relations in the coming period. It expands areas of cooperation in priority sectors, strengthens engagement between the Emirati and Cuban business communities, and explores promising market opportunities — contributing to the national goals of the ‘We the UAE 2031’ vision.”

Attended by the ambassadors of both countries, the session concluded with an agreement to establish a joint framework that will oversee implementation of the committee’s outcomes, ensuring the continuity of economic cooperation and shared growth.

According to WAM, both sides also agreed to coordinate business forums and economic events, exchange trade delegations, and facilitate increased trade and investment flows between Emirati and Cuban companies. The agency added that the two parties proposed organizing joint meetings, seminars, and workshops involving investors, promotion agencies, and financial institutions to attract investment in high-priority sectors.

“They stressed the importance of advancing economic cooperation through new partnerships in entrepreneurship and the startup ecosystem, with the aim of accelerating SME (small and medium-sized enterprise) growth, expanding investments, supporting exports to international markets, and increasing their contribution to the national GDPs (gross domestic products) of both countries,” WAM added.

Food security and agriculture were also top priorities, with both sides expressing interest in boosting trade in food commodities and agricultural products. They also committed to working together on sustainable farming, food processing, and agricultural technology.

Tourism was highlighted as another strategic sector for collaboration. Both nations agreed to co-host exhibitions, events, and conferences to showcase their tourist and heritage destinations. They also discussed sharing expertise and data on tourism resources, statistics, and digital innovations.

The committee’s formation follows recent government restructuring in the UAE. Just over two weeks ago, Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, announced the creation of a Ministry of Foreign Trade, led by Thani Al-Zeyoudi. The Ministry of Economy was also renamed the Ministry of Economy and Tourism, now headed by Abdullah bin Touq Al-Marri.


GCC, Japan advance free trade talks as officials meet in Tokyo

GCC, Japan advance free trade talks as officials meet in Tokyo
Updated 07 July 2025
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GCC, Japan advance free trade talks as officials meet in Tokyo

GCC, Japan advance free trade talks as officials meet in Tokyo

RIYADH: Negotiations over a free trade agreement between the Gulf Cooperation Council and Japan advanced further this week as officials from both sides convened in Tokyo to review progress and explore ways to accelerate discussions.   

The meeting, held between GCC Secretary-General Jasem Al-Budaiwi and Japan’s Vice Minister of Economy, Trade and Industry Kato Akiyoshi, focused on the strategic potential of the proposed accord and recent developments in the negotiation process, the Saudi Press Agency reported.  

The second round of negotiations for the agreement had concluded in Tokyo in early June, covering a wide range of issues including goods, technical barriers, terms of services, financial and telecommunications services, and intellectual property.   

A government delegation led by the General Authority for Foreign Trade took part in those discussions, reviewing proposals aimed at strengthening trade relations, identifying areas for cooperation, and fostering new partnerships.  

At this week’s meeting, both sides reiterated that a free trade agreement would represent a pivotal step toward expanding trade flows, enhancing economic links, and establishing a framework for long-term cooperation.  

“Al-Budaiwi reviewed a number of economic indicators and statistics for the GCC countries, noting that the GCC countries’ distinguished economic performance, and the sustainable growth and development they are witnessing in various sectors, have contributed to strengthening their position regionally and internationally,” SPA’s report stated.  

The officials stated that the accord could open broader avenues for exchange and contribute to a sustainable economic partnership serving shared interests.