Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented. X/@acwapower_en/File
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Updated 18 December 2024
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Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

  • ACWA Power has been significantly involved in Uzbekistan’s renewable energy sector in recent years
  • Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030

JEDDAH: Saudi utility giant ACWA Power launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, marking a $3 billion investment in the country’s energy transition.

On Dec. 18, Uzbekistan’s President Shavkat Mirziyoyev and the Kingdom’s Minister of Energy, Prince Abdulaziz bin Salman, who joined virtually, inaugurated the projects.

The initiatives include the Bash and Dzhankeldy Wind Power Plants with a total capacity of 1,000 megawatts and a transmission line, the Samarkand 1 and 2 solar projects with 1,000 MW of solar power and a 1,000 MWh battery energy storage system, and the Tashkent BESS Project, which consists of a 500 MWh BESS.

Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its broader plan to achieve 20 gigawatts of clean energy capacity by the decade’s end.

Mohammad Abunayyan, the chairman of ACWA Power’s board of directors, who also chairs the Saudi-Uzbek Business Council, emphasized the significant progress in his company’s collaboration with the Uzbek government, highlighting its role as a key strategic investor in the country’s rapidly growing clean energy sector.

Abunayyan said: “Today’s groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country’s energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan’s key regions and communities.”

Prince Abdulaziz commended the robust relationship between the Kingdom and Uzbekistan and said the alliance has nurtured deep collaboration across multiple sectors, with a particular focus on energy, which has brought mutual benefits to both nations, according to a statement from the company.

The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030. He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as the Kingdom’s growing investment in Uzbekistan’s electricity sector amid the country’s energy transition.

In October, ACWA Power announced it signed a letter of intent with the Asian Infrastructure Investment Bank to secure $150 million for the development of three wind power plants in Uzbekistan, namely the Kungrad 1, 2, and 3 plants in the Karakalpakstan region.

The company, listed on the Saudi Stock Exchange, said in a press release that the financing will support the three facilities, each with a capacity of 500 MW.

The financing term is set at four years and will be backed by an institutional guarantee from ACWA Power.

Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country’s renewable energy sector in recent years.

The company’s current portfolio in Uzbekistan includes 11.6 GW of power, with 10.1 GW from renewable sources, along with the country’s first green hydrogen project, which has an annual capacity of 3,000 tonnes.

Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented, with an ongoing portfolio of initiatives valued at $15 billion, ACWA Power said in the statement.


Saudi Arabia forges ahead in AI and tech through US partnerships

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Saudi Arabia forges ahead in AI and tech through US partnerships

JEDDAH: Saudi Arabia is advancing its artificial intelligence, cybersecurity, and cloud computing capabilities through agreements signed with leading US tech firms during an investment forum in Riyadh.

Among the deals signed during the event, six agreements were inked by entities from the Kingdom with US companies, reflecting the deepening strategic and technological cooperation between the two countries.

The forum commenced on May 13 at the King Abdulaziz International Conference Center in the Saudi capital, with the participation of high-ranking officials from both countries. 

It coincided with the visit of US President Donald Trump, during which the Kingdom announced the signing of agreements with the North American country valued at over $300 billion.

These agreements mark a significant step forward in Saudi Arabia’s push to build a diversified, knowledge-based economy through strategic international partnerships, according to the Saudi News Agency.

The Saudi Data and Artificial Intelligence Authority, known as SDAIA, inked four memorandums of understanding with US technology firms PureStorage, DataDirect Network, Wika.io, and Palo Alto Networks during the event.

The agreements aim to enhance the Kingdom’s data and AI infrastructure, drive innovation in emerging technologies, and strengthen cooperation in cybersecurity and technical fields, SPA reported

In a separate move, the Saudi Digital Government Authority signed an MoU with the leading US multinational technology company Oracle to expand collaboration in cloud computing, AI, and digital services.

“The partnership is expected to strengthen the Kingdom’s leadership in cloud computing and digital transformation, enhance digital awareness among government employees and the wider community, and improve the efficiency of government services provided to citizens and residents,” the authority said in a statement.

The release added that the deal represents a model of constructive collaboration and an extension of national efforts aimed at promoting digital innovation, supporting the economy, and achieving institutional excellence through the development of the digital government ecosystem.

The signing ceremony took place at the authority’s headquarters in Riyadh and was attended by Ahmed Al-Suwaiyan, governor of DGA, and Cormac Watters, executive vice president and general manager at Oracle EMEA applications.

The agreement was signed by DGA Vice Gov. Abdullah Al-Faifi and Oracle Country Leader Reham Al-Musa.

The National Center for Privatization signed a memorandum of cooperation with the Association for the Improvement of American Infrastructure to strengthen professional competencies in privatization and public-private partnerships.

Signed on the sidelines of the forum, the agreement “reflects the NCP’s efforts to expand collaboration with the US private sector and develop training programs for Saudi professionals,” SPA report noted.

Under the deal, NCP and AIAI will work together on joint events, expert exchanges, and specialized sessions aimed at promoting institutional knowledge and global best practices in the Kingdom’s privatization ecosystem.


Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 

Updated 40 min 3 sec ago
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Saudi Arabia aiming to foster innovation and global collaboration, says economy minister 

RIYADH: Saudi Arabia aims to foster a dynamic private sector, create jobs for its citizens, and attract international talent as part of its Vision 2030 strategy, according to a top official. 

Speaking during an interview with Fox News on the sidelines of the Saudi-US Investment Forum, Economy and Planning Minister Faisal Al-Ibrahim said the Kingdom has embarked on a transformative path to unlock its potential and shift its growth narrative beyond oil. 

The forum was held on the occasion of US President Donald Trump’s visit to Saudi Arabia, during which he was accompanied by a delegation of leading business figures. 

Al-Ibrahim said: “We want a private sector that’s dynamic. We’re a young population, but in about 20, 25, 30 years, we’ll start the aging process. What we should look like at that stage is a government and a private sector and a third sector, and academia that is leveraging fully generative AI and other technological tools toward productivity.”  

He added: “But also that has created jobs for a lot of Saudis, and has been able to, in the process, attract a lot of talent to come to Saudi to make Saudi Arabia their home.” 

The minister emphasized that diversification has already begun to yield results, with sectors such as tourism, culture, and technology,  as well as sports and artificial intelligence, contributing significantly to gross domestic product. 

“We would love to be competitive in a large and vibrant consumer market, such as that in the US,” the minister said, highlighting the Kingdom’s increasing connections with global markets, especially American capital markets. 

Al-Ibrahim noted that the non-oil gross domestic product has surpassed 50 percent for the first time, but cautioned against complacency. 

“We’re not over-celebrating that, but we’re acknowledging this as a milestone. What we want to see is more non-oil exports growing. More non-oil exports of our manufacturing, GDP,” Al-Ibrahim said. 

The minister also emphasized the importance of service sector quality, adding: “We want to see user experience in the services side, especially on the tourism side, second to none. Still have a lot of work to do.” 

He noted that both Crown Prince Mohammed bin Salman and President Donald Trump have spoken of “peace and prosperity” as tools to address global challenges, reinforcing the Kingdom’s alignment with international efforts toward stability. 

“We’ve seen what dialogue has led to in terms of the US and UK deal, US and China deal, and what Saudi has led to also through dialogue in the region,” the minister added. 

On regional developments, he commented on the US decision to lift sanctions on Syria and its potential impact. 

“Something as strong and meaningful and material as lifting sanctions could help a country such as Syria to invest more capital in building the institutions they need to be a more stable country, but also bring more stability to the region and be a force for good,” Al-Ibrahim said.

Describing the relationship between the crown prince and President Trump, the minister added: “I see common values between both leaders, regardless of age and background, and I think that’s one of the things that really brings the mutual respect into the public eye.” 

Addressing skepticism about the Kingdom’s evolution, the minister concluded: “Saudi Arabia is a long-term reliable partner, if you ask anyone who has dealt with the Kingdom, government, people, anyone who has visited here ... Saudi Arabia has always been and always will be a force for good, for innovation.” 


Egypt approves $221m of oil exploration deals with foreign firms 

Updated 15 May 2025
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Egypt approves $221m of oil exploration deals with foreign firms 

RIYADH: Egypt has approved $221 million worth of deals with foreign firms for oil exploration and exploitation in the Western Desert and Gulf of Suez.

A statement issued following a meeting of the country’s Cabinet, chaired by Prime Minister Mostafa Madbouly, said ministers had signed off on five draft petroleum commitment agreements.

The deals involve the Egyptian General Petroleum Corp., the Egyptian Natural Gas Holding Co., and a group of international oil companies. 

Egypt’s oil and gas sector is rapidly expanding through exploration and global deals, reinforcing its role as a regional energy hub. This aligns with projections from Imarc Group, which forecasts a 4.37 percent annual growth rate for the sector from 2025 to 2033. 

The cabinet release stated: “These agreements cover oil exploration and exploitation in the Northwest Al Maghrah area in the Western Desert, East El Hamad in the Gulf of Suez, East Gemsa Marine in the Gulf of Suez, and the Integrated Research and Development Area in the Western Desert.” 

It added: “They also cover exploration and exploitation of gas and crude oil in the North Damietta Marine area in the Mediterranean Sea.” 

The contracts include a non-refundable signature bonus of $31.5 million and require the drilling of at least 24 wells, the cabinet said. 

Last month, the cabinet approved two deals allowing the Ministry of Petroleum to sign contracts with foreign firms. One permits South Valley Egyptian Petroleum and Lukoil to operate in South Wadi El-Sahl in the Eastern Desert, while the other authorizes the Egyptian General Petroleum Corporation and Lukoil to explore the adjacent Wadi El-Sahl area. 

Egypt holds a key position in global energy markets through the Suez Canal and Suez-Mediterranean pipeline. 

Since its 2015 expansion, the Suez Canal has served as a vital route for oil and liquefied natural gas shipments from North Africa and the Mediterranean to Asia. Revenue from these transit points makes up a significant portion of the government’s income. 

In April, officials reported that Suez Canal revenue fell by nearly two-thirds over the past year, citing regional tensions and Middle East conflicts as major factors disrupting traffic. 

The canal remains a critical source of foreign currency, handling around 10 percent of global trade in recent years. 


IEA forecasts slowdown in global oil demand growth for the rest of 2025

Updated 15 May 2025
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IEA forecasts slowdown in global oil demand growth for the rest of 2025

LONDON: The International Energy Agency said on Thursday economic headwinds combined with record sales of electric vehicles will reduce global oil demand growth to 650,000 barrels per day for the remainder of 2025.

That marks a slowdown from the 990,000 bpd the IEA measured for demand growth over January-March.

“Increased trade uncertainty is expected to weigh on the world economy and, by extension, oil demand,” the IEA said in its May oil market report.

The IEA now expects global demand growth to average 740,000 bpd overall this year, an upward revision of 20,000 bpd on the month because of higher expected economic growth and lower oil prices supporting consumption.

It sees demand growth then averaging a similar 760,000 bpd in 2026.

The Paris-based watchdog hiked its supply growth forecast by almost 400,000 bpd on the month to 1.6 million bpd in 2025 as expectations of higher output from Saudi Arabia offset a predicted slowdown in US shale oil output in a lower oil price environment.

Saudi Arabia accounts for almost all of the hike in the IEA’s 2025 supply growth forecast, the IEA said, as it is the only country with room to add barrels back to the market based on current production levels.

The OPEC+ group agreed a second monthly accelerated output increase for June at its last meeting.

“Based on continued price weakness, we expect more activity cuts over the coming quarters,” the IEA said of US shale, having cut its US shale forecast by 40,000 bpd for 2025 and 190,000 bpd for 2026.

In its own monthly oil report on Wednesday, the Organization of Petroleum Exporting Countries trimmed its forecast for oil supply growth from the US and other producers outside the wider OPEC+ group for 2025.

A sharp rise in supply, considerably outpacing demand growth, will force oil storage levels higher by an average of 720,000 bpd this year, the IEA said, after stocks declined on average by 140,000 bpd last year. 


Saudi Arabia’s annual inflation rate holds steady at 2.3% in April: GASTAT 

Updated 15 May 2025
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Saudi Arabia’s annual inflation rate holds steady at 2.3% in April: GASTAT 

RIYADH: Rent increases and fuel price rises helped Saudi Arabia post an inflation rate of 2.3 percent in April — the same level as a year earlier — official data showed.

According to the latest figures from the General Authority for Statistics, a 6.8 percent increase in the cost of housing, water, electricity, gas, and other fuels contributed to the rise.

Within this category, rents paid for housing rose by 8.1 percent, driven by an 11.9 percent spike in apartment rental prices, a category that holds significant weight in the overall index. 

This comes as Saudi Arabia’s real estate market continued its growth trajectory in the first quarter of 2025, with overall property prices rising 4.3 percent year on year. 

The Kingdom’s inflation rate was similar to Middle Eastern neighbour Jordan, which posted a modest increase of 1.97 percent in the first four months of 2025, but significantly lower than the 13.5 percent registered in April by Egypt.

In its release, GASTAT stated that rental growth “had a substantial effect on the overall annual inflation rate for April 2025 due to the section’s weight, which amounted to 25.5 percent.” 

The release showed that food and beverage prices also saw an increase of 2.2 percent, influenced by a 9.4 percent rise in vegetable prices. The prices of restaurants and hotels rose by 2 percent, driven by a 2 percent increase in catering services. 

The education sector witnessed a 1.3 percent increase, mainly due to a 5.6 percent rise in fees for intermediate and secondary education. 

The prices of furnishing and home equipment, however, decreased by 1.8 percent, driven by a 3.5 percent decline in furniture, carpets, and flooring prices. 

Clothing and footwear prices dropped by 1.2 percent, with ready-made clothing prices falling by 2.1 percent. 

Transportation costs also decreased by 1 percent, primarily due to a 1.8 percent reduction in vehicle purchase prices. Communication services saw a slight decrease of 1.5 percent. 

Monthly inflation 

The consumer price index recorded a slight increase of 0.3 percent in April compared to March. 

This monthly increase was mainly influenced by the rise in housing, water, electricity, gas, and other fuels by 0.3 percent, driven by a 0.4 percent increase in actual housing rents and prices. 

The report also noted a minor increase in food and beverages with 0.4 percent, restaurants and hotels with 0.7 percent, and personal goods and services with 0.8 percent, compared to the previous month. 

Prices of education saw an increase of 0.2 percent, while furnishing and home equipment prices edged up by 0.4 and clothing and footwear prices went up by 0.2 percent. 

There were decreases in the prices of recreation and culture by 0.4 percent and the transportation, communication and health section by 0.1 percent. 

The prices of tobacco division products showed no significant change in April. 

Wholesale Price Index 

In another report, GASTAT revealed that the Wholesale Price Index reached 2 percent in April compared to the same month of the previous year. 

This increase was mainly driven by a 4.5 percent rise in the prices of agriculture and fishery products, which was affected by a 6.9 percent rise in prices of agricultural products. 

Prices of other transportable goods, excluding metal products, machinery and equipment, saw a year-on-year increase of 4.1 percent, driven by an 8.2 percent rise in the prices of refined petroleum products. Moreover, the prices of furniture rose by 9.3 percent. 

Prices of food products, beverages, tobacco, and textiles remained unchanged in April, but ores and minerals prices dipped by 1.7 percent, due to a 1.7 percent decrease in stone and sand prices. 

On a monthly basis, the WPI increased by 0.1 percent in April compared to March, attributed to a 0.7 percent rise in prices of agriculture and fishery products, driven by a 1.3 percent increase in the prices of agricultural products, and a 2.5 percent rise in the prices of fish and other fishing products. 

The prices of metal products, machinery and equipment increased by 0.2 percent driven by a 1.1 percent uptick in the prices of basic metals and a 0.1 percent increase in the prices of equipment transport. 

In a month-on-month comparison, the prices of ores and minerals increased by 0.1 percent, due to a 0.1 percent rise in the prices of stone and sand. 

The prices of other transportable commodities except metal products, machinery and equipment, and the prices of food products, beverages, tobacco, and textiles remained stable, and did not record any significant relative change in April. 

Global and regional inflation trends

Global headline inflation is set to keep moving down, with the World Bank projecting it to decline to 4.2 percent in 2025 and to 3.5 percent in 2026, “converging back to target earlier in advanced economies than in emerging markets and developing economies,” according to an International Monetary Fund report in January.

Across the Middle East, inflation patterns show notable divergence. Lebanon has seen a dramatic slowdown, with annual inflation dropping to 14.2 percent in March from 70.36 percent a year earlier. This sharp deceleration stems largely from exchange rate stabilization, as the Lebanese pound has maintained a steady rate of about 89,500 to the US dollar since mid-2023. 

“Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases,” Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund, stated in April.

Meanwhile, Qatar’s inflation eased by 1.15 percent year on year in January, driven by declines in food, housing, and transport costs, according to data from the National Planning Council.

In late 2024, Gulf economies experienced measured inflationary pressures. Data from the Statistical Centre for the Cooperation Council for the Arab Countries of the Gulf showed that overall inflation across GCC states rose by 1.7 percent year-on-year in October.