Energy transition toward renewables ‘unstoppable,’ but fossil fuels ‘cannot shut down in a day,’ says IRENA chief Francesco La Camera

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Updated 12 March 2023
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Energy transition toward renewables ‘unstoppable,’ but fossil fuels ‘cannot shut down in a day,’ says IRENA chief Francesco La Camera

  • International Renewable Energy Agency director-general says COP28 summit in the UAE “will be historic”
  • La Camera has “no doubts about the ambition of Saudi Arabia” becoming a leading green hydrogen exporter

DUBAI: For the world to transition to green energy without disrupting existing supply lines, divestment from fossil fuels must be a gradual process, Francesco La Camera, director-general of the International Renewable Energy Agency, told Arab News.

“We have to understand that the old system, the one that is centralized and based on fossil fuels, cannot shut down in a day,” La Camera told Katie Jensen, host of the Arab News program “Frankly Speaking.”

“There will be a slow decline of oil and gas. And to maintain a smooth decline of oil and gas, we need some investment again in oil and gas. If not, there will be a disruption.”

A steady transition away from fossil fuels toward solar, wind, hydro, geothermal and other renewables would help maintain a stable supply for the industrialized world, while also meeting the energy demands of developing nations, he added.

“Everything should be balanced. We have to understand that we have a demand for energy that is needed for development. And this demand will be increasing, especially in Africa and Southeast Asia.”




Frankly Speaking host Katie jensen, left, interviewing Francesco La Camera, director-general of the International Renewable Energy Agency.

IRENA is an intergovernmental agency for energy transformation, supporting countries in their energy transitions and providing data and analyses on technology, innovation, policy, finance and investment.

La Camera, who has served as the agency’s director-general since April 2019, has helped forge a series of strategic partnerships with UN organizations, including UNDP, UNFCCC and the Green Climate Fund, to implement a more action-oriented approach.

However, the Italian diplomat is realistic in his expectations of the pace of the energy transition, especially in the context of the war in Ukraine, which has led to a spike in world energy prices, pushing several nations to readopt cheaper but dirtier alternatives like coal.

Environmentalists have accused developed nations of hypocrisy following recent moves in Europe and the UK to reopen coal mines, at a time when most countries are phasing out fossil fuels.

“In the very short term, to avoid collapses and disruption in the energy supply, countries are trying to do what is possible,” said La Camera. “In some cases, this has been reactivating coal mines, but they are not investing in new coal mines. At least we are not aware of that.”

However, La Camera believes these are only short-term measures, implemented in response to rising energy costs caused by Western sanctions on Russian oil and gas. The long-term trajectory toward green renewables, he says, is “unstoppable.”

He said: “We have to understand that we are living in the time of the Ukrainian crisis and countries have to respond to the lack of the gas coming from Russia. We have to always distinguish between the very short term and the medium to long term.

“In the short term, countries are trying to do what they can to not deprive their own public of the heating and cooling that is needed … they’re trying to find remedies to the shortage of Russian gas. But their policies in the medium to long term are very clear. We are not going backward.

“The last year has been a record year for investment in renewables. We have broken new records in the new installing capacity of renewables. We now have 81 percent of the new installing capacity of renewables.

“This process is unstoppable. The only question that we have now is not the direction of travel — that is clear and nothing can change it. The question is the speed and the scale of this transformation, because it is not at a pace that can achieve the Paris Agreement goals and the UN Sustainable Development Goals.”

The Paris Agreement is an international climate treaty adopted in 2015, covering climate change mitigation, adaptation and finance. The agreement’s overarching goal is to hold the increase in the global average temperature to well below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5 degrees Celsius.

“We are not in line with the Paris Agreement goals,” said La Camera. “We say very clearly that we need, this decade, $57 trillion in investment in the energy transition. We are not there at all. We say that we need to triple our installing capacity of renewables by 2030, and this is not happening.

“Where does this money come from? We have a clear idea on that. There is a lot of liquidity in the market. The question is our point of view that today there are not the right policies in place to activate the demand, for example, for green hydrogen.

“And there is not yet enough focus on the infrastructure needed to sustain the building of the new energy system. And when we talk about the infrastructure, we talk about the physical, the legal and the institutional capacity and professional skill careers.”

Saudi Arabia has pledged to achieve net-zero emissions by 2060. It has undertaken $1 billion in climate change initiatives as part of the Saudi Green Initiative, which seeks to establish a regional carbon capture and storage center, an early storm warning center and cloud seeding programs as part of its efforts to create a greener future.

Crown Prince Mohammed bin Salman said the Kingdom will plant 450 million trees and rehabilitate 8 million hectares of degraded lands by 2030, reducing 200 million tons of carbon emissions with additional initiatives to be announced in the years to come.

Saudi Arabia has also announced its ambition to generate 50 percent of its electricity from renewables by 2030, with the remaining 50 percent coming from natural gas.

It has launched several major renewable energy projects, taking advantage of its natural potential in solar and wind, including the Sakaka solar power plant, the first utility-scale solar power project in Saudi Arabia, and Dumat Al-Jandal, its first utility-scale wind project.

Furthermore, the Kingdom aims to become the world’s leading hydrogen producer and exporter. Saudi Aramco and SABIC, in partnership with the Institute of Energy Economics, Japan, announced in 2020 the world’s first blue ammonia shipment from the Kingdom to Japan.

NEOM, the Kingdom’s smart-city giga-project taking shape on the Red Sea coast, has also announced plans to build one of the world’s largest green hydrogen plants.

“They (Saudi Arabia) have ambitions for green hydrogen,” said La Camera. “They are ready to sign contracts to sell not oil and gas, but to sell green hydrogen. The question is that the demand is still not there. And so, the partners of demand have to be one of the elements to be considered for making things happen.”

So, what can be done to encourage greater demand for hydrogen products to make them a viable alternative energy source?

“First is industrial policies,” said La Camera. “Developed countries and others have industrial policies that may favor a demand for green hydrogen instead of fossil fuels. This is very important. This means the legal environment is critical.

“In the meantime, we need the infrastructure to bring what we are producing in terms of green hydrogen into the market. North Africa, they have five pipelines that can perhaps be adapted to transport, not gas, as such, but hydrogen. We may be able to have more ships for trading ammonia. We can think about electroducts that may let countries exchange energy in an efficient way.

“All these are elements of a comprehensive package that may, hopefully, push countries to go faster. But again, I have no doubts about the ambition of Saudi Arabia. I have no doubt about the ambition of the UAE, and I’ve also seen other countries in the Gulf that are moving quickly with this trend.”

COP28, the 28th session of the Conference of the Parties to the UN Framework Convention on Climate Change, convenes from Nov. 30 to Dec. 12 this year in the UAE — marking only the second time the summit has been held in the Arab world following Egypt’s presidency last year.

La Camera believes participating nations must use this year’s summit to go beyond pledges and promises and instead take concerted action on cutting greenhouse gas emissions and transitioning to renewables.

“We need everyone in the discussion. Oil and gas companies, governments, and countries where gases are relevant from an economic point of view. They must be part of the discussion,” he said.

“The UAE and Saudi Arabia have already shown big ambition in going for renewables. Here is a place where you can produce electricity at lower cost. And we have seen that countries in the Gulf are going for net zero, setting their own hydrogen strategy.

“For the first time, COP in the UAE will certify that we are not on track. This COP has to come up with a way to close the gap between where we are and where we should be. IRENA is trying to work on building this narrative, beyond COP28, offering the presidency something to base their work on, in funding compromise among all the other countries.

“We are quite sure that this COP28 will be historic.”

Given the widespread pessimism in many quarters, La Camera’s optimism about the transition to renewables and the proactive role played by the Gulf Arab oil producers is reassuring.

He is not complacent, however, and says he will continue to push for a faster and more ambitious adoption of clean energy at COP28 and beyond.

“Renewables are playing and will play a central role,” he said. “We are going to a new energy system that will be dominated by renewables and with the complement of hydrogen, mainly green hydrogen, and the sustainable use of biomass.

“There is no way to stop this process. The question is how to sustain this process happening at the speed and scale needed.”

 


Neom port cuts cargo transit time with new trade corridor

Updated 28 July 2025
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Neom port cuts cargo transit time with new trade corridor

RIYADH: Neom port has completed a trial of a new multimodal regional trade corridor linking Saudi Arabia, Egypt, and Iraq, cutting cargo transit times by more than half, according to the Saudi Press Agency.

The pilot, conducted in partnership with the Logistics Partnership Council, demonstrated significantly faster delivery compared to traditional shipping routes.

The trial shipment originated in Cairo, Egypt, and traveled via Safaga Port across the Red Sea to Neom port. From there, it continued overland to Irbil in northern Iraq, covering more than 900 km.

The initiative brought together multiple government and regulatory bodies — including the Transport General Authority and the Zakat, Tax and Customs Authority — alongside private sector stakeholders such as shipowners, exporters, importers, export councils, and logistics firms.

The successful test comes as Neom port accelerates infrastructure upgrades and moves toward full automation. In June, it received Saudi Arabia’s first remote-controlled ship-to-shore and electric rubber-tyred Gantry cranes. Operated from ergonomic control rooms, the cranes mark a milestone in the development of Terminal 1.

A 900-meter quay wall has also been completed, and the port’s access channel has been deepened to 18.5 meters, enabling it to accommodate the world’s largest container ships.

As part of Neom’s workforce development strategy, the crane operations program includes training Saudi women in advanced technical roles.

According to SPA, the new trade corridor achieved high levels of operational efficiency across each stage of the journey, offering an integrated logistics solution that enhances competitiveness.

“This pilot project is a pivotal step in implementing a long-term vision to enhance Neom port’s role as a major logistics and maritime hub in the Kingdom of Saudi Arabia,” the agency stated.

Strategically located on the Red Sea and near the Arar border crossing — a key entry point into Iraq — Neom port aims to become a regional gateway connecting global trade routes and streamlining movement across Asia, Africa, Europe, and the Middle East.

The corridor project aligns with Saudi Arabia’s Vision 2030 objective of building a world-class logistics ecosystem by integrating ports, land crossings, and customs centers. It also presents a scalable model to strengthen domestic logistics connectivity and reinforce the Kingdom’s position as a central player in regional and international trade.


Saudi Arabia leads GCC IPO market with $1.8bn in Q2 listings: PwC

Updated 28 July 2025
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Saudi Arabia leads GCC IPO market with $1.8bn in Q2 listings: PwC

  • GCC equity markets raised $2.4 billion from four main market IPOs
  • Kingdom’s leadership underscored by high-profile IPOs such as Flynas and Specialized Medical Co.

RIYADH: Saudi Arabia dominated Gulf equity markets in the second quarter of 2025, securing 76 percent of total initial public offering proceeds amid strong investor demand for listings on its bourses. 

According to PwC Middle East’s latest IPO Watch report, Gulf Cooperation Council equity markets raised $2.4 billion from four main market IPOs and eight listings on Saudi Arabia’s Nomu Parallel Market. The proceeds were broadly in line with the $2.6 billion raised during the same period in 2024, despite a decline in the number of listings. 

The Kingdom’s leadership was underscored by high-profile IPOs such as Flynas, the region’s first airline listing in over 15 years, and Specialized Medical Co., which raised $500 million in June. Three IPOs in the region raised over $500 million each, reflecting strong investor appetite and a shift toward larger deals. 

“The global market volatility at the start of Q2, driven by uncertainty over global trade tariffs, understandably prompted some companies to reassess their IPO plans,” said Muhammad Hassan, capital markets leader, partner at PwC Middle East. 

“Despite slower IPO activity across the GCC, Tadawul and DFM witnessed landmark IPOs such as Flynas and Dubai Residential REIT," he added. "The outlook remains cautiously optimistic for the remainder of the year, subject to macroeconomic and geopolitical factors.”  

Strong IPO performance was further bolstered by rising foreign investor participation across Gulf stock markets, with net inflows jumping 50 percent quarter on quarter to reach $4.2 billion in the second quarter of 2025, according to a report by Kuwait-based asset management company Kamco Invest released earlier in July.  

This marked the sixth consecutive quarter of net foreign inflows into GCC equities.  

Kamco reported that Saudi Arabia attracted the highest inflows at $1.4 billion, up from $252.3 million the previous quarter, reflecting increased investor confidence amid the Kingdom’s ongoing market liberalization and economic diversification efforts. 

PwC reported that the Nomu market showed continued strength, with eight listings raising $128 million in the second quarter of the year, up from $81 million during the same period last year. 

In the UAE, the Dubai Residential REIT IPO marked the first real estate investment trust listing since 2014, signaling renewed investor interest in alternative assets.  

The Dubai Financial Market and Abu Dhabi Securities Exchange rebounded from early turbulence, with the Dubai Financial Market gaining 15 percent and the Abu Dhabi Securities Exchange rising 7 percent. 

Regional equity indices saw mixed performance, with early-quarter uncertainty followed by recovery later in the period. In Saudi Arabia, the Tadawul All Share Index declined 6 percent, influenced by a nearly 20 percent drop in Brent crude prices.  

Looking ahead, PwC said that while the third quarter typically experiences reduced IPO activity, the pipeline for late 2025 and early 2026 remains strong and diversified. 


Closing Bell: Saudi main market closes lower at 10,885 

Updated 28 July 2025
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Closing Bell: Saudi main market closes lower at 10,885 

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Monday, falling 70.90 points, or 0.65 percent, to end the session at 10,885.32.  

The total trading turnover on the main market reached SR4.61 billion ($1.2 billion), with 546.78 million shares traded. A total of 72 stocks advanced while 177 declined. 

The MSCI Tadawul 30 Index also dropped, losing 10.55 points, or 0.75 percent, to close at 1,399.41. 

On the Kingdom’s parallel market Nomu, the index declined by 209.73 points, or 0.78 percent, to finish at 26,781.28. Of the listed companies, 31 gained while 49 fell. 

Sport Clubs Co. led the gainers, rising 9.92 percent to SR11.19. It was followed by SHL Finance Co., which advanced 6.47 percent to SR23.85, and Allied Cooperative Insurance Group, which rose 6.13 percent to SR11.43. 

Riyadh Cables Co. posted a gain of 4.73 percent, while Saudi Co. for Hardware rose 3 percent. 

On the other hand, Tourism Enterprise Co. recorded the sharpest decline of the session, falling 9.84 percent to SR1.10. Banque Saudi Fransi dropped 5.26 percent to SR16.92, while Raydan Food Co. fell 4.07 percent to SR13.66.  

Thob Al Aseel Co. declined by 3.93 percent, while Northern Region Cement Co. fell 3.89 percent. 

On the announcement front, Al Majeed Oud Co. reported a 19.6 percent year-on-year increase in revenue for the first half of 2025, reaching SR618.8 million compared to SR517.2 million in the same period last year.  

The company also posted a 21.5 percent rise in net profit, which grew to SR145.2 million from SR119.5 million over the same timeframe. 

According to the company, the increase in sales was driven by the performance of newly launched products, retail network expansion, growth in its e-commerce platform, and targeted marketing campaigns during the Ramadan and Hajj seasons.  

It attributed the rise in net profit to the same commercial factors, along with improved operational efficiency measures. 

Shares of Al Majeed Oud Co. closed at SR130, down 1.52 percent. 

Raoom Trading Co. reported a 13.7 percent year-on-year decline in revenue for the first half of 2025, with sales falling to SR51.5 million from SR59.7 million in the same period last year.  

Net profit also dropped sharply, falling 91.9 percent to SR2.2 million from SR28.3 million. 

The company attributed the decline in revenue to lower average selling prices driven by market conditions and a reduction in sales volumes. 

The fall in net profit was also linked to a SR3 million loss from the revaluation of financial assets at fair value, compared to a gain of SR14.8 million in the corresponding period of 2024. 

Shares of Raoom Trading Co. closed at SR60.55, down 1.54 percent. 


Saudi Arabia, Syria sign deal to boost energy ties

Updated 28 July 2025
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Saudi Arabia, Syria sign deal to boost energy ties

  • Two sides explored cooperation opportunities across various energy sectors during talks
  • Saudi and Syrian business leaders affirmed readiness to support redevelopment of Syria’s energy infrastructure

RIYADH: Saudi Arabia and Syria are strengthening their energy cooperation through a new agreement that covers oil and gas, petrochemicals, electricity, regional grid integration, and renewable energy.

The memorandum of understanding was signed by the Kingdom’s Minister of Energy, Prince Abdulaziz bin Salman, and his Syrian counterpart, Mohammed Al-Bashir, following a meeting held in Riyadh, according to a statement.

The move is part of Saudi Arabia’s drive to strengthen ties across key investment sectors and support shared goals of economic growth and sustainable development with Syria.

It also aligns with the Kingdom’s recent signing of $6.4 billion in investment deals with Syria, marking a major step toward re-engaging economically and supporting the country’s reconstruction efforts.

“During the meeting, the two sides explored cooperation opportunities between the two countries across various energy sectors and ways to enhance them, including oil and its supplies, electricity, renewable energy, and energy efficiency,” the Kingdom’s Ministry of Energy said.

“They also reviewed investment opportunities, and the exchange of expertise in developing projects, policies, and regulatory frameworks in the Kingdom’s energy sector, as part of broader efforts to support the development journey of the Syrian Arab Republic,” it added.

Following the talks, Saudi and Syrian business leaders affirmed their readiness to support the redevelopment of Syria’s energy infrastructure, as announced during a high-level meeting in Riyadh.

The participants presented proposals for joint projects focused on conventional and renewable energy sectors, signaling a potential shift toward greater regional investment collaboration.

Al-Bashir outlined his ministry’s recent achievements and its strategic direction, despite prevailing challenges, reported the Syrian Arab News Agency.

Al-Bashir said economic partnerships and investor engagement are crucial to advancing the energy sector and welcomed collaborative initiatives aimed at enhancing development efforts.

The talks coincide with a broader renewal of Saudi-Syrian relations, underlined by the July Syrian-Saudi Investment Forum held in Damascus.

Earlier in July, a Saudi delegation visiting Damascus announced investment and partnership deals valued at $5 billion to help rebuild war-battered Syria.

The agreements span vital and strategic sectors, including real estate, infrastructure, communications, IT, transportation and logistics, industry, tourism, energy, trade, and more, AFP reported at the time, citing a statement from the investment ministry.

According to official data from Saudi Arabia’s General Authority for Statistics, Syria was the Kingdom’s 53rd largest export destination in April, with non-oil exports rising by 153.3 percent year on year to reach SR81.9 million.

Syria ranked 60th among countries supplying goods to Saudi Arabia, with imports totaling SR78.5 million in April, representing a sharp 149.7 percent year-over-year increase.


Expat remittances in Saudi Arabia jump 21% in May to over $4bn

Updated 28 July 2025
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Expat remittances in Saudi Arabia jump 21% in May to over $4bn

  • Transfers by non-Saudis reached nearly SR70 billion, an annual rise of almost 26%
  • Money sent abroad by Saudi citizens reached SR29.8 billion, up 13% year on year

RIYADH: Expatriate remittances from Saudi Arabia rose to SR15.2 billion ($4.05 billion) in May, marking a 21 percent increase compared to the same month last year. 

According to data by the Saudi Central Bank, also known as SAMA, transfers by non-Saudis reached nearly SR70 billion during the first five months of 2024, an annual rise of almost 26 percent. 

Money sent abroad by Saudi citizens reached SR29.8 billion, up 13 percent year on year, the central bank’s monthly bulletin showed. 

The significant uptick in outbound transfers reflects several economic and social factors shaping the Kingdom’s labor market and remittance behavior. Among these are the rising number of foreign workers, improving wages, and growing reliance on digital payment solutions that facilitate cross-border transfers more efficiently. 

Saudi Arabia is home to more than 16.41 million non-Saudis as of May, who make up over 44 percent of the population, according to data by Global Media Insight. As the Kingdom continues to develop under Vision 2030, many expats are taking on higher-paying jobs in health care, construction, logistics, and technology sectors. 

Improved career opportunities have led to increased disposable income, part of which is regularly sent back to support families in their countries of origin. 

In the Expat Insider 2024 survey conducted by international expat network InterNations, 75 percent of expatriates in the Kingdom said their career prospects had improved significantly since relocating to Saudi Arabia. 

This placed the country second globally in the “Working Abroad Index,” just behind Denmark. The findings reflect growing expat satisfaction and underscore the rising earning potential in the Saudi labor market. 

Fintech adoption has also contributed to the remittance boom. Companies like stc pay, UrPay, and Tahweel Al-Rajhi offer fast and affordable remittance services integrated with mobile wallets, enabling low-cost and convenient international transfers. 

According to a 2024 World Bank brief, the average cost of sending $200 from Saudi Arabia was 5.5 percent in the fourth quarter of 2023, making it one of the least costly G20 countries for remittance outflows.

In comparison, the G20 average stood at 6.5 percent, with countries like South Africa at 12.8 percent and Japan at 7 percent ranking among the highest. The global average cost for remittances was 6.4 percent, well above the UN Sustainable Development Goal target of 3 percent by 2030. 

The growth in remittances by Saudi nationals may be attributed to a combination of factors, including the expansion of the working-age population, increased international travel, overseas investments, and education-related transfers. 

Young Saudis studying abroad, owning property overseas, or supporting family members outside the Kingdom all contribute to rising personal transfers. 

The overall increase in outbound remittances aligns with broader macroeconomic trends. As Saudi Arabia pushes to diversify its economy and empower the private sector, higher employment levels and better wage conditions are translating into more outbound flows. At the same time, remittances play a vital role in supporting economies across South Asia, the Middle East, and Africa, where many Saudi-based expats originate. 

The Kingdom’s commitment to financial innovation, coupled with a strong expat-driven economy, will likely keep remittance flows elevated in the months ahead.