KAPSARC concludes observer participation at COP27 climate negotiations

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Updated 21 November 2022
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KAPSARC concludes observer participation at COP27 climate negotiations

SHARM EL-SHEIKH: The King Abdullah Petroleum Studies and Research Center has concluded its participation at the UN Climate Change Conference.

The center co-hosted four side events with international and local organizations at COP27 in Sharm El-Sheikh, while showcasing the best way to a net-zero carbon scenario in the Saudi Green Initiative, as well as enriching six discussion sessions in the Saudi Pavilion.

It also held six sessions in several international pavilions such as the Japan Pavilion, the International Emissions Trading Association (IETA) Business Hub, Clean Air Task Force CATF’s Zero Carbon Future, and New York Times Climate Forward.

“KAPSARC’s participation at COP 27 aims to support global efforts in facing climate change and emphasized the Kingdom’s efforts in this field. In line with the summit the Center launched the second edition of the Circular Carbon Economy Index and two reports published in collaboration with King Abdullah University of Science and Technology (KAUST) to highlight the role of nature-based solutions and the Circular Carbon Economy (CCE) in curbing carbon emissions and reaching Paris Agreement goals,” President of KAPSARC, Fahad Alajlan, said.

Alajlan mentioned that the summit is a good opportunity to connect with ideas, experiences and best practices that seek to secure energy sustainability without harming the economic development cycle. He stressed that COP 27 is a chance to present and explain the CCE framework that was developed by our Center and several international organizations as a holistic and inclusive approach to manage carbon emissions.

The Vice President of Knowledge and Analysis, Fahad Alturki, pointed out that the COP 27 sessions pave the way in reaching the climate goals as many countries are targeting carbon neutrality by 2nd half of the century, as they work to display the best initiatives and approaches to make this goal a reality. He explained that investment in energy efficiency will power the opportunity to balance between the energy transition and the challenges of economic development.

During the days of the event,15 of KAPSARC’s experts shared their knowledge in several fields, such as the role of nature-based solutions in reaching net-zero carbon, innovative solutions for plastic circular economy, opportunities to preserve and promote ecosystem biodiversity, in addition to challenges for green transformation in the Middle East, the Kingdom's approach to reaching net-zero emissions, as well as regional carbon strategies and the role of finance in accelerating Carbon capture and storage (CCS) Deployment.

It is worth mentioning that the King Abdullah Petroleum Studies and Research Center (KAPSARC) is an advisory think tank within global energy economics and sustainability; provides consulting services and produces evident base research to support the Saudi energy sector and impact global policymaking.


Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco

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Saudi Arabia’s top 10 listed firms hit $2.1tn valuation, led by Aramco

RIYADH: Saudi Arabia’s top 10 publicly listed companies reached a combined market capitalization of $2.1 trillion as of April 25, highlighting their dominant role in the Kingdom’s capital markets, according to a new analysis by Forbes Middle East.

The companies collectively reported $133.9 billion in net profits for 2024, reflecting the growing strength of the Kingdom’s diversified economy. The ranking covers key sectors such as energy, banking, telecommunications, industrials, and utilities.

The milestone comes as the Saudi Exchange, or Tadawul, was recognized as the world’s fastest-growing stock market in 2024. The number of listings doubled to 55, and market liquidity surged by 40 percent — a growth fueled by a streamlined capital management system that halved IPO processing times and widened investor participation.

“The banking sector dominates the ranking, securing five out of the 10 spots, with total assets amounting to $854.7 billion,” the Forbes report noted.

Saudi Aramco topped the list with a market value of $1.7 trillion. The energy giant posted $480.4 billion in revenue and $106.2 billion in net income last year, cementing its position as a global energy leader.

Aramco also advanced its international strategy through major deals in 2024, including a $12.35 billion secondary share sale in June, $25 billion in contracts to boost gas output by 60 percent by 2030, a $90 billion agreement with U.S. firms, and a joint venture with China’s Sinopec to develop a refining complex in Fujian province.

Banking giants 

Saudi Arabia’s leading banks continued to post strong performance in 2024, with several institutions recording double digit profit growth and expanding their international and digital footprints.

Saudi National Bank maintained its position as the Kingdom’s largest lender by assets, reaching $294.4 billion. The bank posted $5.6 billion in net profits and bolstered its global presence with a $500 million bond issuance in Taiwan.

Al Rajhi Bank, which holds $259.8 billion in assets, recorded an 18.7 percent rise in profits to $5.3 billion. The Islamic lender also acquired a majority stake in the fintech app Drahim, signaling a strategic push into digital finance.

Riyad Bank reported a 15.9 percent increase in profits to $2.5 billion, supported by a $750 million sukuk issuance. Saudi Awwal Bank also delivered strong results, with profits climbing 15 percent to $2.2 billion following a $1.1 billion sukuk deal.

Meanwhile, Alinma Bank saw profits jump 20.5 percent and signed a $756 million agreement with Bahri to finance oil tankers, underscoring its growing role in Shariah-compliant corporate financing.

Telecom and industrials   

In telecommunications, stc Group recorded $6.6 billion in profits, launched STC Bank, and transferred tower assets to a Public Investment Fund-led entity.  

SABIC, a global chemicals leader, recovered from a 2023 loss to post $993 million in profits and sold its Alba stake for $966 million.    

Meanwhile, Maaden, the Middle East’s top mining firm, acquired SABIC’s Alba stake and issued a $1.25 billion sukuk, contributing 20 percent of Saudi non-oil exports.   

Utilities and energy 

Saudi Electricity Co. saw a 7.5 percent increase in power output and signed a $3.6 billion gas plant deal, while raising $2.75 billion in sukuk. The company also settled $1.5 billion in historical obligations to the state, with PIF holding a 74.3 percent stake.  

Forbes ranked firms based on sales, assets, profits, and market value from Tadawul, with equal weight given to each metric.     

This elite group of companies highlighted Saudi Arabia’s economic strength, with banks and energy firms driving record profits and global expansions in 2025.   


Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 

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Egypt’s non-oil private sector contracts in June as PMI falls to 48.8 

RIYADH: Egypt’s non-oil private sector continued to contract in June, with the Purchasing Managers’ Index falling to 48.8 from 49.5 in May, as business confidence plunged to its lowest level on record. 

According to the latest S&P Global survey, this marked the fourth consecutive month below the neutral 50 threshold, signaling a continued deterioration in operating conditions. The decline was accompanied by the sharpest reduction in purchasing activity in nearly a year and a pronounced drop in sentiment about the year ahead. 

The June PMI downturn came amid escalating regional and economic pressures, with spillovers from the Gaza conflict suppressing tourism, remittance flows, and Suez Canal revenues — all key sources of foreign exchange and domestic demand. 

Concurrently, intermittent disruptions in Israeli gas exports have sparked concerns over energy reliability, while elevated freight rates have inflated import costs.  

David Owen, a senior economist at S&P Global Market Intelligence, said: “Overall expectations for future activity were the lowest ever recorded in June.”  

He added: “This downbeat sentiment reflects subdued hopes for order books, as well as concerns that geopolitical risks could cause greater economic disruption.”  

The survey, conducted between June 12 and 20, highlighted deepening demand weakness across the economy.   

Businesses widely reported that weaker order books prompted them to scale back output, while a broad stagnation in local markets contributed to the drop in new orders.  

Although the pace of decline accelerated compared to May, S&P Global noted that it remained softer than the series average.  

Purchasing volumes decreased for the fourth month running, with the contraction gathering pace to become the fastest recorded in nearly a year.  

The manufacturing sector saw the largest cutbacks among the surveyed industries.   

As a result of reduced buying levels, inventories stalled in June after having risen slightly in the preceding three months.   

The data also pointed to ongoing strains in supply chains, reflected in a slight lengthening of supplier delivery times for the second month in a row.  

Employment levels continued to weaken, though the rate of job shedding was described as fractional and was the softest observed in the current five-month sequence of workforce reductions. 

S&P Global noted that staffing cuts were driven not only by diminished demand but also by the prevailing pessimism regarding future activity.  

“Although rates of contraction accelerated from the prior survey, they remained softer than their respective historic trends,” Owen added.  

“Nevertheless, a faster drop in input purchases combined with stalling hiring activity suggests that firms expect demand to remain low and are thereby looking to make cost savings.”  

On the cost side, there was a modest reprieve for businesses. Input cost inflation eased to a three-month low, while the pace at which firms raised output prices slowed considerably from May’s seven-month high.   

This softening of price pressures provided some relief but did little to offset the overall deterioration in confidence.  

The S&P Egypt PMI is a composite index derived from survey responses from around 400 private-sector firms, designed to provide a single-figure snapshot of non-oil business conditions.   

Readings above 50 signal improvement, while those below 50 indicate deterioration.


Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 

Updated 06 July 2025
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Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 

RIYADH: Saudi Arabia’s Public Investment Fund has surpassed $1 trillion in assets, marking a global milestone — but the organization is now pivoting from rapid expansion to a focus on solvency, strategic discipline, and sustainable long-term returns. 

According to Global SWF, the sovereign wealth fund, which recently announced an 18 percent increase in assets under management to SR4.32 trillion ($1.15 trillion) in 2024, is now prioritizing “solvency over scale” and “substance over show.” 

This evolution reflects a broader recalibration of Vision 2030’s investment engine, one that balances domestic megaproject ambitions with liquidity concerns, geopolitical outreach, and disciplined asset rotation. 

While PIF’s top-line revenues surged 25 percent to SR413 billion, net profit fell sharply, down 60 percent to SR26 billion, as rising interest rates, impairments, and project delays eroded returns. 

The decline signals a new reality for one of the world’s most ambitious sovereign investors: returns must be restructured, debt must be optimized, and capital must be deployed with precision. 

To address these challenges, PIF has undertaken a series of strategic shifts. According to Global SWF, these include tighter performance management, a growing reliance on commercial paper and sukuk for short-term funding, and a renewed focus on mature, revenue-generating assets. 

Notably, net profits at AviLease, a PIF-owned aviation leasing firm, increased by 350 percent, while holdings in Uber overtook those in Lucid in PIF’s US public equity portfolio, reflecting a pivot to more resilient assets. 

Meanwhile, PIF’s role is increasingly geopolitical. The fund has been instrumental in securing major international partnerships, including anchoring investment platforms with BlackRock, Goldman Sachs, and Brookfield, as well as government-to-government deals with China, India, France, and the US. 

According to Global SWF, India’s proposal of a 10-year tax holiday and sweeping capital gains exemptions aims to unlock over $100 billion in PIF-led inward investment, underlining its strategic importance. 

PIF’s fiscal and institutional maturity is also earning global recognition. In July, the fund scored a perfect 100 percent in the 2025 Global SWF Governance, Sustainability, and Resilience Scoreboard. 

The ranking, which evaluates 200 sovereign investors globally, placed PIF among just nine funds worldwide and ranked it the highest in the Europe, the Middle East, and Africa region to meet all governance and transparency benchmarks. According to Global SWF, PIF’s strong showing reflects solid progress in disclosures, leadership accountability, and commitment to ESG. 

That commitment is especially evident in the fund’s ESG and green finance activities. In 2024, PIF launched a 100-year green bond as part of its sustainable finance framework, offering a rare long-term issuance that combines ESG impact with Shariah compliance. This approach is helping the fund attract diverse investor interest while aligning capital with climate goals. 

In parallel, the fund is building the Kingdom’s digital and artificial intelligence backbone. In May, it launched HUMAIN, a national AI company tasked with advancing Saudi Arabia’s position in sovereign AI capabilities. 

According to a PIF official statement, HUMAIN aims to invest in foundational models, develop Arabic-language datasets, and partner with global tech leaders, such as NVIDIA. The firm will serve as a vehicle for sovereign AI infrastructure and localization, supporting economic diversification and national security objectives. 

This evolving strategic posture comes at a critical moment for Saudi Arabia’s foreign direct investment ambitions. While cumulative investments remain below Vision 2030 targets, the latest figures from the General Authority for Statistics show that the volume of foreign direct investment inflows reached SR24 billion in the first quarter of this year, marking a 24 percent increase compared to the same period in 2024. 

The figure reflects resilience despite global uncertainties, with PIF expected to play a leading role in accelerating capital deployment and crowding in private investors. 

The fund is also rebalancing its internal structure. As Global SWF noted, several giga-projects, including NEOM’s “The Line,” have been downsized. While originally envisioned as a $1.5 trillion smart city housing 1.5 million people by 2030, current projections suggest that just 300,000 residents and 2.4 km of development will be completed within that timeframe. Accordingly, PIF has trimmed budgets for several large-scale ventures by 20 to 60 percent for 2025. 

Yet this recalibration is not a retreat. It signals a transition to what Global SWF describes as “precision finance,” which uses strategic levers such as commercial paper, asset recycling, co-investments, and sovereign partnerships to preserve liquidity and reduce fiscal strain. 

The fund’s ability to blend long-term Eurobonds with short-term sukuk and CP issuance demonstrates a growing sophistication in liability management, which is rare among sovereign wealth funds. 

As PIF deepens its international exposure, its dual role as both an investor and a policy instrument is becoming increasingly evident. According to Global SWF, the fund’s presence in Paris, its alignment with Trump-era Gulf deals, and its expanding memorandum of understanding with Asian markets reveal an increasingly geopolitical deployment of capital. 

Ultimately, the question facing PIF is not whether it can scale — it already has. The real test is whether it can steer Vision 2030 through a period of rising global interest rates, shifting capital flows, and mounting domestic expectations. If PIF can tighten execution, manage costs, and deliver returns across cycles, it may well redefine the playbook for state-driven transformation. 

As 2025 unfolds, the fund’s performance will be closely watched, not only for its financial metrics but for what it reveals about the sustainability of Vision 2030’s ambitions. 


OPEC+ to raise output by 548,000 bpd in August as market outlook improves

Updated 06 July 2025
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OPEC+ to raise output by 548,000 bpd in August as market outlook improves

RIYADH: Eight members of the OPEC+ alliance of oil exporting nations say they will boost oil production by 548,000 barrels per day in August in a move that could further reduce gas prices this year.

The decision came after a virtual meeting on July 5, where the group — comprising Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — reviewed global market conditions and cited a steady economic outlook and low oil inventories as reasons for the increase.

The planned output hike is part of a broader, gradual return of 2.2 million barrels per day of voluntary cuts announced in December 2024. Under that agreement, the eight producers began easing their curbs in April 2025, with the August increase representing the equivalent of four scheduled monthly increments.

OPEC+ emphasized that the gradual ramp-up remains flexible and could be paused or reversed if market conditions warrant. This adaptive approach, the group said, aims to safeguard oil market stability amid evolving global dynamics.

In addition to the production increase, the eight countries reaffirmed their commitment to full compliance with the alliance’s Declaration of Cooperation. They also pledged to compensate for any overproduction since January 2024, with oversight provided by the Joint Ministerial Monitoring Committee.

Monthly meetings will continue to assess supply, demand, and conformity. The next gathering is scheduled for Aug. 3, when members will decide on production levels for September.


Saudi Arabia’s $2.5tn mineral reserves fuel industrial push

Updated 06 July 2025
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Saudi Arabia’s $2.5tn mineral reserves fuel industrial push

  • Mining sector projected to boost its GDP contribution from $17 billion in 2024 to $75 billion by 2030

JEDDAH: Saudi Arabia is accelerating the development of its mining sector as a central pillar of economic diversification, with the Kingdom’s mineral wealth now estimated at SR9.4 trillion ($2.5 trillion). 

The surge in value is driven by discoveries of rare earth elements, base metals, gold, phosphate, and titanium — a strong, lightweight metal with high-value applications in aviation and turbine manufacturing. 

A major catalyst for this growth is the Northern Borders region, home to SR4.6 trillion in resources and a key hub for phosphate production. Developments in Waad Al-Shamal have helped position the Kingdom among the world’s top phosphate exporters. 

In alignment with Vision 2030 and the National Industrial Development and Logistics Program, the mining sector is projected to boost its contribution to gross domestic product from $17 billion in 2024 to $75 billion by 2030. It generated $400 million in revenue in 2023 and is now backed by a $100 billion investment plan targeting critical minerals by 2035. 

Speaking to Arab News, Saurabh Priyadarshi, a geologist and adviser for mining and metals at Geoxplorers Consulting Services, highlighted that Saudi Arabia’s substantial reserves of gold, copper, phosphate, rare earth elements, and lithium position it as a potential global leader in the industry.

“Saudi Arabia can foresee itself becoming a key player in the global minerals supply chain. Calling these minerals critical is a different matter altogether,” he said. 

Priyadarshi added that one of the strongest diversification drivers is rising global demand for battery metals and industrial minerals that power electric vehicles and renewable energy infrastructure. 

“As global markets push toward decarbonization, Saudi Arabia, too, can and should leverage its $2.5 trillion mineral resource base to power the next phase of industrial growth,” Priyadarshi said. 

Saudi Arabia is also prioritizing domestic resources and talent, promoting public-private partnerships, and adopting Fourth Industrial Revolution technologies to drive sustainable, long-term growth. 

Minerals central to 2030 plan 

Mansour Ahmed, an independent economic adviser, described mineral development as a strategic cornerstone of Vision 2030. He said Saudi Arabia’s untapped reserves are “critical to the global energy transition.” 

Ahmed stressed that growing the sector would expand non-oil GDP, generate employment, and drive regional development. He highlighted the importance of mining cities and downstream hubs “to maximize local value and build integrated, resilient supply chains.” 

Both Priyadarshi and Ahmed noted Saudi Arabia’s alignment of mining with advanced manufacturing and innovation. 

Priyadarshi pointed to Ras Al-Khair’s aluminum smelter and the planned battery chemicals complex in Yanbu, developed in partnership with EV Metals Group, as examples of the Kingdom’s industrial leap forward. 

Investments in automated mining technologies, AI-driven exploration, and ESG-focused practices reflect Saudi Arabia’s ambitions to become a global hub for sustainable resource extraction.

Saurabh Priyadarshi, geologist and adviser for mining and metals at Geoxplorers Consulting Services

Saudi Arabia has also secured lithium processing capabilities, becoming the first Middle Eastern country to establish a battery materials supply pipeline. 

“The government is leveraging its Public Investment Fund to finance mining and battery production, ensuring long-term supply chain resilience,” Priyadarshi said. 

He also cited strategic global moves, such as acquiring stakes in Vale’s base metals division and developing domestic copper smelting, as reinforcing the Kingdom’s ambitions in critical minerals. 

According to the Vision 2030 Annual Report for 2024, mining has been prioritized as a key sector for economic diversification. The report highlights significant reforms introduced to support this strategic shift, including the Comprehensive Mining Strategy and the Mining Investment Law — both designed to create a more attractive and transparent regulatory environment. 

Institutional support was reinforced through the establishment of the Ministry of Industry and Mineral Resources. Furthermore, the Saudi Geological Survey and the National Geological Database were launched to strengthen geological mapping and resource assessment capabilities. 

New entities such as Manara Minerals, the Mining Fund, and the Nuthree Exploration Incubator were also created to stimulate investment, innovation, and entrepreneurship in the sector.

ESG and AI integration 

Priyadarshi emphasized that sustainability is integral to this transformation, with AI-driven exploration minimizing environmental impact, automation improving productivity and energy efficiency, and blockchain tools ensuring compliance with ethical, environmental, social, and governance standards. 

Saudi Arabia is also investing heavily in renewables to power its industrial base. Priyadarshi pointed to the Kingdom’s $235 billion commitment to solar, wind, and hydrogen, including NEOM’s $5 billion green hydrogen facility and a $35 billion phosphate and bauxite processing expansion at Ras Al-Khair. 

Ras Al-Khair Industrial City is home to Maaden’s phosphate and ammonia plants, aluminum smelters, and steel
production facilities such as Hadeed — showcasing the Kingdom’s ability not only to extract, but also to process and add value to its mineral resources. The city is rapidly emerging as a strategic node in global supply chains. 

Priyadarshi noted that the Kingdom’s strategy extends beyond resource extraction. He underscored the importance of integrating mining with downstream industries such as aluminum smelting, phosphate processing, and electric vehicle battery production to reinforce supply chains and develop high-value sectors that move beyond the export of raw minerals. 

“Investments in automated mining technologies, AI-driven exploration, and ESG-focused practices reflect Saudi Arabia’s ambitions to become a global hub for sustainable resource extraction,” he said. 

When asked about the most strategically important minerals for the Kingdom, Ahmed identified phosphate, rare earth elements, and gold as critical. 

He explained that phosphate is essential for food security and serves as a key driver of industrial exports, while rare earth elements such as neodymium, praseodymium, and dysprosium are vital for manufacturing EVs, wind turbines, defense technologies, and high-tech electronics — making them central to future-proofing the clean energy economy. 

“Gold continues to hold significant financial value and remains an important mineral for the Kingdom. Copper and bauxite closely follow, given their growing importance in global electrification,” Ahmed added. 

Global rankings 

According to the Vision 2030 report, Saudi Arabia has achieved top international rankings in the mining sector. 

The Kingdom secured first place for mining investment growth, as reported by MineHutte and the Mining Journal. It also ranks among the top 10 countries for mining financial policies and holds the second position globally for efficient license issuance — taking approximately 90 days to issue a mining license. 

The report adds that Saudi Arabia’s advanced legislative framework has attracted significant interest, with 290 local and international companies operating in the sector as of 2024. 

The National Geological Database has dramatically expanded its coverage from just 1.7 percent in 2021 to 51 percent by last year, enabling better resource identification. 

Investor confidence remains high, with 30 proposals submitted for the Kingdom’s largest-ever mining tender in 2024, covering valuable mineral sites containing gold, silver, copper, and zinc.