Saudi Aramco inks hydrogen agreement as Bezos, Musk and Blair address B20 gathering
Saudi Aramco inks hydrogen agreement as Bezos, Musk and Blair address B20 gathering/node/2199551/business-economy
Saudi Aramco inks hydrogen agreement as Bezos, Musk and Blair address B20 gathering
(From left) Indonesian Energy Minister Arifin Tasrif, President Director of Pertamina, Nicke Widyawati, Aramco Senior Vice President of Downstream, Mohammed Y. Al Qahtani, and Chair of Indonesia B20 Shinta Kamdani (Supplied)
Saudi Aramco inks hydrogen agreement as Bezos, Musk and Blair address B20 gathering
Updated 14 November 2022
Arab News
RIYADH: Oil giant Saudi Aramco used the gathering of business leaders ahead of the Group of Twenty summit of world leaders to sign an agreement with Indonesia’s energy firm Pertamina to explore collaboration across the hydrogen and ammonia value chain.
The memorandum of understanding was inked on the sidelines of the so-called B20 summit in Bali, Indonesia, as both Saudi Arabia and the host nation eye achieving the net-zero target by 2060.
The MoU involves a pre-feasibility study that aims to assess the possibility of cooperation related to the development of a clean ammonia and hydrogen value chain.
The understanding also includes potential carbon capture, utilization and storage at Pertamina Group’s existing facilities and other agreed potential locations.
The pre-feasibility study, which will be conducted over the next two years, will also explore the investment viability of developing commercial structures for clean ammonia and hydrogen in Indonesia.
“As a company, our ambition is to achieve net-zero scope 1 and 2 greenhouse gas emissions across our wholly-owned operating assets by 2050,” said Aramco's senior vice president of Downstream Mohammed Al-Qahtani.
Saudi Aramco had pledged to achieve the net-zero targets by 2050, 10 years ahead of the Kingdom’s net-zero goal.
Al-Qahtani added: “Our work in developing new ammonia and hydrogen energy pathways will be pivotal in achieving that goal while helping to advance an affordable, equitable and more sustainable transition for all.”
Nicke Widyawati, president director of Pertamina, said that energy transition should not jeopardize energy security and affordability, especially for countries that are highly dependent on fossil fuels.
“Hydrogen and ammonia are expected to play a key role in a future climate-neutral economy, enabling emission-free power generation, heavy transport, heating and industrial processes,” said Widyawati.
Last week, during the UN’s Climate Summit in Sharm El-Sheikh, Egypt, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman announced the Ministry has joined hands with Aramco to establish a carbon capture and storage hub as the Kingdom steadily pursues its sustainability journey.
Saudi Aramco CEO Amin Nasser said that the new carbon capture and storage hub will be located on the east coast of Saudi Arabia in Jubail.
Nasser added that the hub will have a storage capacity of up to 9 million tons of carbon dioxide a year by 2027.
Inside the B20 event, Amazon founder and executive chairman Jeff Bezos used a pre-recorded speech to urge global leaders not to think about sustainability policies as being detrimental to economic growth.
“Let's not get stuck in the mindset of either/or thinking,” he said, adding: “Many business and government leaders would like to be bold in reducing environmental damage but they fear it will raise costs and hurt growth but we now know that smart action against climate change doesn’t just stop bad things happening, it also can improve resource efficiency, drive new technology, reduce uncertainty and lead to new opportunities.”
Bezos reaffirmed his pledge to power all of Amazon’s operations with 100 percent renewable energy by 2025, and said the company is working to convert its delivery fleet to electric vehicles.
He also set out the criteria by which the Bezos Earth Fund will hand out $10 billion in grants by 2030.
“These include phasing out internal combustion engines, decarbonizing steel and cement, raising food crop yields, reducing food loss, and empowering indigenous communities to manage tropical forests,” said the businessman, adding: “For each of these factors we try to identify how close they are to positive tipping points and what barriers we can help remove in order to cross these tipping points.”
Also appearing at the conference was Elon Musk, who is negotiating a troubled start to his reign as CEO of Twitter, including confusion over the so-called ‘blue tick’ system.
Taking part in a discussion via video link, Musk said it is a “no brainer” that the social networking site needs to focus more on video content, and this would benefit users.
“Twitter is ready to give revenue share to content creators to make a living,” he said.
Reflecting on the controversies surrounding his tenure at the organization, he said: “There is no way to make everyone happy, that is for sure.”
Former UK Prime Minister Tony Blair used a pre-recorded speech at the event to insist the world of the 21st century represents an “entirely new economy”.
“The premium is on people who are educated, are capable of developing the skills of the future and who understand the way this technology revolution will operate,” he said.
Blair argued that technology would not just change the way people live and work, but “every culture”, and massive investment is needed not just in education but also healthcare.
“We have seen how much damage the pandemic could do, not just to people's health — 15 million excess deaths worldwide — but to trillions of dollars lost in the pandemic,” he said, adding: “If we produce better health, it will add trillions more to the global economy.
“Better health equals better productivity equals higher growth.”
Heritage meets high-tech: Saudi Arabia’s bold vision for smart tourism
Updated 23 May 2025
Reem Walid
RIYADH: Tourism is a critical part of Saudi Arabia’s Vision 2030 diversification initiative, but far from solely relying on its rich heritage to attract visitors, the Kingdom is utilizing pioneering technology to bring the past to life and help deliver an economy for the future.
One of the key pillars of the government’s aim to move Saudi Arabia away from its reliance on oil revenues is to establish the Kingdom as a global tourism hub and increase the sector’s gross domestic product contribution from 3 percent to 10 percent.
Vision 2030’s initial visitor target was 100 million a year by the end of the decade, but after surpassing that milestone seven years ahead of schedule, the ambition has now grown to 150 million.
While modern tourism attractions — such as Expo 2030 and global sports events — have a key role, utilizing the Kingdom’s heritage also has a huge role to play in attracting tourists and fueling long-term growth.
Experts have told Arab News that the Kingdom is blending this offering with cutting-edge technologies such as artificial intelligence, virtual reality, and augmented reality to redefine tourism.
From immersive historical reconstructions to personalized AI-driven tours, the Kingdom is setting a global benchmark for experiential and sustainable travel.
According to Bain and Co.’s Sami Abdul Rahman and Joachim Allerup, given the country’s young and digitally savvy population, the tourism sector is increasingly embracing gamification to make heritage sites more engaging and interactive.
“VR is being used to reconstruct ancient civilizations, allowing visitors to explore these locations as they once were, while AI personalizes tours based on visitors’ preferences, providing tailored insights and recommendations,” Abdul Rahman and Allerup said in a joint statement.
“Interactive AR overlays further enrich the experience by offering real-time information about artifacts and historical events. These innovations do not merely serve as entertainment but function as powerful educational tools, fostering a deeper connection between visitors and Saudi Arabia’s rich cultural heritage,” they added.
The partners went on to highlight that the combination of digital technology and traditional storytelling ensures that historical sites remain relevant and captivating for modern audiences.
Maite Grau Garvin, principal at Arthur D. Little Middle East, shed light on how through AR virtual tours, interactive exhibits and VR powered reconstructions, visitors can explore Diriyah’s rich heritage and historic Najdi architecture in a way that is both engaging and immersive, far beyond the traditional experience.
“Films and digital storytelling further enrich the experience, narrating the region’s deep-rooted history and cultural significance. Diriyah’s visitors can also interact with AI chatbots and voice assistants that deliver customized insights into Najdi architecture, key historical figures, and significant events,” Garvin said.
She added: “In AlUla, technology is transforming the way visitors experience Hegra, the ancient Nabataean site and Saudi Arabia’s first UNESCO World Heritage Site. AR experiences allow visitors to use smartphones or wearable smart glasses to overlay digital reconstructions of holograms, tombs, and inscriptions, bringing the site’s history to life like never before.”
The principal went on to say that these innovations represent a significant step forward in heritage tourism, allowing visitors to not only observe history but engage with it in an immersive and interactive manner.
“By seamlessly integrating AI, VR, and AR, Saudi Arabia isn’t just preserving its history — it’s bringing it to life, setting a new global benchmark for experiential tourism,” Garvin added.
Smart cities harmonizing with Saudi history
NEOM is redefining eco-friendly luxury in hospitality. Shutterstock
NEOM is at the heart of Saudi Arabia’s Vision 2030, bringing together sustainability, automation, and cultural heritage to create unique tourism experiences. The smart city has over 900 heritage sites, including Nabataean tombs, ancient inscriptions and cultural landmarks.
From ADL’s perspective, unlike traditional tour experiences, where history is something you just observe, NEOM makes it interactive. Visitors will be able to experience them through immersive storytelling, digital reconstructions, and guided smart tours.
“Their entire tourism model is built around renewable energy-powered transport, smart visitor flow management, and low-impact exploration. Whether it’s electric shuttles through heritage zones or AI-driven crowd control, the goal is to preserve cultural landmarks while making them seamlessly accessible,” Garvin said.
She added: “NEOM’s regenerative tourism model also protects and regenerates 95 percent of its land for nature, allowing visitors to explore heritage sites while engaging with the natural landscapes that have shaped Saudi culture for centuries.”
The ADL partner also highlighted how NEOM is redefining eco-friendly luxury in hospitality by creating carbon-neutral, renewable energy-powered hotels that blend seamlessly with the environment. Advanced water recycling, smart energy grids, and AI-driven sustainability efforts ensure minimal ecological impact.
“These initiatives, among many other, help ensure that Saudi Arabia’s history is not lost in its rapid modernization but instead enhanced through smart, sustainable tourism infrastructure ensuring world-class travel experience for generations to come,” Garvin added.
Effect of developments like Diriyah and AlUla on Saudi Arabia
AlUla. Shutterstock
Developments like Diriyah and AlUla give Saudi Arabia a clear edge when it comes to attracting tourists.
Garvin explained that while many countries have iconic historical sites, Saudi Arabia is creating something novel — immersive, technologically enabled, and sustainably developed heritage destinations that are purpose-built for 21st-century travelers.
“AlUla’s integration of AR and digital storytelling, and Diriyah’s AI-driven visitor engagement, are raising the bar for how history is experienced. Add to that the quality of infrastructure, transport, and hospitality now emerging in these locations, which is further supporting Saudi establish itself as a major player on the global tourism stage — especially for culturally curious and experience-driven travelers,” she said.
The principal added that these projects, particularly when anchored in sustainability and powered by advanced technology, give Saudi a first-mover advantage in what can be called “smart heritage tourism.”
She continued: “As the global tourism sector becomes more experience-driven, these developments place the Kingdom ahead of the curve.”
Garvin also shed light on how the Kingdom is opening up its tourism sector with a focus on providing diverse, enriching experiences.
She noted that the development of the sites is guided by a commitment to variety, from immersive cultural districts to accessible heritage attractions, ensuring that the offering caters to a broad range of travelers without necessitating elevated costs.
“That said, a tiered model is likely. For instance, bespoke experiences — such as private AR-guided tours or luxury stays within heritage zones — could naturally carry a higher price point,” the principal said.
General access to cultural landmarks, historical sites, and exhibitions is expected to remain competitively priced to encourage widespread domestic and international participation.
This approach aligns with the goals of Vision 2030: positioning tourism as a catalyst for cultural exchange, economic diversification, and job creation.
“Ultimately, the return on these investments is expected to come from increased visitor numbers, longer stays, and higher overall trip value, rather than from charging more per individual experience,” Garvin added.
High-tech solutions aligning with Vision 2030
The integration of high-tech solutions directly supports Saudi Vision 2030’s goals of diversifying the economy and positioning the Kingdom as a global cultural hub.
Abdul Rahman and Allerup from Bain & Co. explained that smart tourism initiatives mean people can experience what Saudi has to offer even before they arrive in the Kingdom.
“AI-driven platforms can personalize travel recommendations, while VR and AR allow global audiences to explore Saudi Arabia’s historical sites remotely, generating interest even before they arrive. This hybrid approach— where physical and digital tourism coexist— expands accessibility, ensuring that more people engage with Saudi culture regardless of their location.” they said.
From ADL’s side, technology is enhancing the travel experience to Saudi Arabia with e-visa platforms and digital booking systems, simplifying entry for tourists. Upon arrival, AI-powered assistants offer real-time insights and personalized cultural experiences.
The ADL representative also clarified that digital platforms and the metaverse are expanding Saudi Arabia’s cultural reach through virtual heritage tours and interactive storytelling on social media while emphasizing that these efforts preserve and promote the Kingdom’s history, engaging a global audience.
“On the sustainability front, AI and IoT-powered monitoring systems protect UNESCO-listed heritage sites while smart waste management and carbon-neutral tourism initiatives ensure responsible development,” Garvin said.
Maite Grau Garvin, principal at Arthur D. Little Middle East. Supplied
Evolution of smart tourism
From Bain & Co.’s lens, by 2025, smart tourism in Saudi Arabia will be characterized by hyper-personalized experiences driven by AI and data analytics.
Abdul Rahman and Allerup shed light on how travelers will be able to use advanced digital assistants to plan their visits, receiving itinerary suggestions tailored to their interests and real-time adjustments based on preferences or changing conditions.
The partners added: “Additionally, AI-driven customer service and smart infrastructure will streamline the travel experience, reducing friction and enhancing convenience. These advancements will position Saudi Arabia as a global leader in smart tourism, offering visitors not just a journey through history but a glimpse into the future of travel itself.”
Garvin from ADL believes that by the end of 2025, the Kingdom’s tourism sector will be one of the most technologically advanced in the world..
“As the Kingdom rapidly evolves, it has a unique opportunity to shape its identity as a global travel hub as it is a nation with a rich historical legacy yet a blank canvas in modern tourism,” she said.
She added: “Saudi Arabia isn’t just preserving its cultural legacy — it’s revolutionizing how the world experiences it, setting a new global standard for immersive, sustainable, and technology-driven tourism. By fusing innovation with tradition, Saudi Arabia is creating a truly future-proof tourism industry.”
Uber overtakes Lucid as PIF’s largest US equity holding by value
Updated 23 May 2025
Dayan Abou Tine
RIYADH: Uber Technologies Inc. has emerged as the Saudi Public Investment Fund’s largest single holding by market value in its US portfolio, valued at $5.31 billion for an unchanged stake of 72.84 million shares.
This change reflected a market-driven increase in Uber’s stock price. In contrast, Lucid Group Inc., in which PIF continues to hold 1.77 billion shares, saw its market value decline to $4.29 billion from over $5.3 billion at the end of 2024.
According to the fund’s latest 13F filing with the US Securities and Exchange Commission, PIF’s US equity portfolio fell to $25.55 billion by March-end, down from $26.77 billion the preceding quarter, amid valuation and position changes.
The shift was primarily driven by market-based valuation changes, rather than a significant reallocation of assets, with the majority of holdings remaining unchanged in terms of share count.
Not all holdings listed in the filing are traditional equity shares. The fund also disclosed positions in call options for several US tech giants, including Amazon, Adobe, and Microsoft, as well as Alphabet, and Meta Platforms.
These derivatives grant the right — but not the obligation — to purchase the underlying stocks and are distinct from direct share ownership. The figures disclosed, such as 961,300 shares tied to call options on Adobe Inc. and 1.2 million shares via Alphabet Inc. options, represent the total number of underlying shares the options control.
These positions indicate the PIF’s strategic use of capital-light exposure to high-value tech equities.
While many core holdings remained unchanged, PIF increased its exposure in certain stocks. The fund nearly doubled its position in PayPal Holdings, from 1.76 million to 3.67 million shares, and added to its stakes in Amazon, Zoetis, Micron Technology, and Lam Research.
PIF increased its position in PayPal Holdings. Shutterstock
Debt issuance meets strategic shift
In parallel with its global positioning, PIF continues to tap capital markets to finance Vision 2030 initiatives.
According to a May report by Global SWF, the fund raised $1.25 billion through a seven-year sukuk — its second debt issuance of the year — tightening pricing from 145 basis points over US Treasuries to just 110 basis points after attracting over $8.2 billion in orders.
The sukuk, issued under the Trust Certificate Issuance Programme as Sukuk Al-Wakala, signals robust investor confidence and PIF’s expanding sophistication in Islamic finance.
However, the issuance comes amid an internal recalibration.
According to the report, citing Arabian Gulf Business Insight, PIF is reportedly cutting 2025 budgets across its portfolio by at least 20 percent, with some flagship giga-projects facing up to 60 percent reduction. Developments such as NEOM and the Red Sea Project have seen timeline adjustments and contract revisions as the fund prioritizes capital discipline.
This strategic shift reflects broader fiscal pressures. Oil revenues remain below target, and Brent oil forecasts for 2025 have been revised downward to $66 per barrel, far below the $90 per barrel fiscal breakeven.
Meanwhile, Aramco’s dividend payout is expected to fall to $85.4 billion, reducing government inflows. Combined with a rising fiscal and trade deficit, borrowing has become a necessary tool for PIF to maintain project continuity.
Despite this, the fund is doubling down on investor engagement, according to Global SWF. It has raised $5.25 billion in debt already in 2025 through various instruments, including a $4 billion bond in January and a $7 billion Murabaha credit facility. These steps are allowing the fund to selectively advance high-priority ventures while reassessing broader allocations.
A new era of capital discipline
PIF is looking to invest in ventures linked to events including the 2034 FIFA World Cup set to be held in Saudi Arabia. Getty
PIF’s transformation signals a new phase of financial pragmatism, according to Global SWF. Rather than scaling back, the fund is reallocating, favoring ventures with measurable returns — especially those aligned with near-term events like Expo 2030 and the 2034 FIFA World Cup.
Analysts describe the move not as a retreat, but recalibration and pivot toward “economically viable infrastructure” and industry-led projects.
Co-investment deals with firms like Goldman Sachs, BlackRock, and Brookfield are also on the rise, helping PIF attract external capital and reduce reliance on sovereign funding. The aim is to deploy up to $70 billion annually while ensuring long-term sustainability, the report said.
Despite the evolving landscape, market appetite for PIF-backed instruments remains strong, said Global SWF. The latest sukuk’s successful pricing reflects sustained confidence in Saudi Arabia’s fiscal direction and PIF’s strategic execution.
The fund’s move toward pairing financial firepower with economic logic underscores its evolution from a spender to a steward of transformation.
As PIF adjusts its financial architecture, its mix of market exposure, targeted lending, and fiscal discipline may set a precedent for sovereign investors worldwide — and reinforce its role as the cornerstone of Saudi Arabia’s post-oil future.
Oil Updates — crude heads to first weekly loss since April on OPEC+ supply hike prospect
Updated 23 May 2025
Reuters
SINGAPORE: Oil prices dropped for a fourth consecutive session on Friday and were set for their first weekly decline in three weeks, weighed down by renewed supply pressure from another possible OPEC+ output hike in July.
Brent futures fell 31 cents, or 0.5 percent, to $64.13 a barrel by 7:12 a.m. Saudi time. US West Texas Intermediate crude futures lost 33 cents, or 0.5 percent, to $60.87.
For the week, Brent has fallen 1.9 percent, and WTI has dropped 2.5 percent, following two weeks of gains.
Both contracts touched their lowest in more than one week on Thursday after a Bloomberg News report that OPEC+ was considering another large production increase at a meeting on June 1.
Increasing output by 411,000 barrels a day (bpd) for July was among the options discussed, but no final agreement has yet been reached, the report said, citing delegates.
“The oil market is under renewed pressure as noise builds around what OPEC+ will do with their July output levels,” ING analysts wrote in a research note.
They expect that OPEC+ will go ahead with a 411,000 bpd supply increase for July and currently forecast Brent to average $59 per barrel in the fourth quarter.
OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to increase production by nearly 1 million barrels per day in April, May and June.
The supply tailwind offset jitters earlier this week triggered by a report saying Israel is making preparations to strike Iranian nuclear facilities and new sanctions announced by the EU and Britain on Russia’s oil trade.
A large crude oil build in the US also weighed on oil prices.
As traders brace for a flood of increased supply in coming months from OPEC+, US crude oil storage demand has surged in recent weeks to levels similar to the COVID-19 pandemic, according to data from storage broker The Tank Tiger.
On Friday, the market will watch for US oil and gas rig count data from Baker Hughes that is used as an indicator for future supply.
The market is also closely watching US-Iranian nuclear negotiations which could determine the future supply of Iranian oil. The fifth round of talks will take place in Rome on Friday.
Saudi Arabia launches global platform to shape future of tourism
Updated 22 May 2025
Nadin Hassan
RIYADH: Saudi Arabia has launched TOURISE, a global platform connecting leaders in tourism, tech, investment, and sustainability, as it positions itself to shape future travel policy and innovation.
The platform, officially introduced by Minister of Tourism Ahmed Al-Khateeb, will serve as a year-round initiative to unlock investment opportunities, address sector-wide challenges, and develop policies to guide the next phase of global tourism growth.
The launch aligns with Saudi Arabia’s broader push to become a global tourism hub, backed by major infrastructure investments, streamlined visas, and high-profile events. In 2024, Saudi Arabia hit its Vision 2030 target of 100 million visitors — seven years early — with tourism now contributing nearly 5 percent to gross domestic product.
Speaking during the virtual launch, Al-Khateeb said: “Tourism is one of the most dynamic, connective forces in the world’s economy, supporting one in ten jobs globally. But as the world evolves, the sector must too.”
He added: “Whether adapting to technological disruption and changing traveler expectations, to addressing the urgent calls for sustainability and a more equitable approach to travel, TOURISE will be the much-needed platform to shape the future of tourism.”
TOURISE will be supported by an advisory board composed of global figures from the tourism, hospitality, and technology, as well as entertainment and investment sectors.
According to the official press release, TOURISE will also form working groups focused on key themes and will publish white papers and global indices in collaboration with international organizations.
The first TOURISE Summit will take place in Riyadh from Nov. 11-13. The event will explore four major areas: the role of artificial intelligence in tourism, investment and business model innovation, travel experience upgrades, and inclusive and sustainable tourism practices.
An Innovation Zone will spotlight emerging technologies from both public and private sector firms.
An accompanying awards program will recognize destinations and organizations that demonstrate leadership in categories such as sustainability, digital transformation, cultural preservation, inclusive tourism and workforce development.
Nominations for the awards are scheduled to open on June 2, with winners to be announced on the summit's opening day.
“For this industry to evolve and reach its full potential, public-private sector collaboration is critical to the continued success of Travel & Tourism worldwide,” said Julia Simpson, president and CEO of the World Travel & Tourism Council and a member of the TOURISE advisory board.
Egypt central bank cuts key interest rates by 100 basis points, statement says
Updated 22 May 2025
Reuters
CAIRO: Egypt’s central bank lowered its key interest rates by 100 basis points on Thursday, its second rate cut in 2025 after keeping rates unchanged for a year.
