Vision 2030 can inspire global solutions to land degradation, energy crisis

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Updated 12 December 2024
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Vision 2030 can inspire global solutions to land degradation, energy crisis

  • UNCCD executive secretary discusses how Saudi Arabia’s strategy can lead global environmental change

RIYADH: Achieving Saudi Arabia’s Vision 2030 will require significant investment in land restoration and renewable energy, as the nation’s ambitious strategy extends beyond national goals, according to a senior executive.

In an interview with Arab News on the sidelines of COP16 in Riyadh, Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification, emphasized that the Kingdom’s transformative national strategy should be a global model.

“Vision 2030 is a national vision from Saudi Arabia. But it can only be achieved if we invest more in land restoration. It can only be achieved if we invest more in empowering communities to manage their resources,” Thiaw said.

He further added: “It is certainly an excellent vision proposed by the Kingdom of Saudi Arabia. But it goes beyond in terms of vision, in terms of ambition. It has to be implemented in many other parts of the world.”

Thiaw highlighted the need for innovative solutions to address global food production challenges. For example, he pointed out the importance of doubling food production by 2050 without exhausting limited resources, calling for the adoption of technologies like artificial intelligence, precision agriculture, and water-efficient systems.

He also noted that Vision 2030 stresses the importance of balancing traditional farming techniques with modern technologies to enhance soil productivity, reduce pollution, and avoid the expansion of agricultural land.

“Saudi Arabia is already doing quite a bit in land restoration,” Thiaw said, referencing efforts through institutions like the Saudi Fund for Development, which has active portfolios across Africa, Asia, and Latin America.

“But we all need to do more,” Thiaw added. “That will probably require that the Saudi Fund for Development, as well as other institutions where Saudi Arabia is the main shareholder, like the Islamic Development Bank, the OPEC Fund, and many other institutions, realign their portfolios to match the ambitions of COP16.”

As a G20 member, Thiaw urged the Kingdom to help rally other nations to meet the G20 goal of restoring 50 percent of degraded land by 2040. The focus, he stressed, must not only be on making commitments but also on ensuring their effective implementation.

“Saudi Arabia will be appreciated if it works with its peers from other countries, with South Africa, which is now the current presidency of G20, and then the future presidencies, as well as all members of the G20,” Thiaw said.

Thiaw also emphasized the critical importance of integrating traditional methods, like underground irrigation, with modern technologies such as desalination and renewable energy to support sustainable development, especially in arid regions. These combined solutions can address challenges like water scarcity and energy demands while promoting economic growth.

“This is where you need new technologies and combine them with the traditional technologies, including the underground irrigation that has been known here for millennia, and so we can use new technologies to make additional water available,” Thiaw said.

He added: “I visited the Saudi pavilion here. I just could not believe what I saw, and from 300 megawatts just a few years back, there are now 44 gigawatts moving to 80 GW. I was stunned!”

Thiaw explained that Saudi Arabia’s progress demonstrates how integrating traditional and new technologies can lead the way in energy transitions, land management, and water accessibility, creating a better future for all.

Key outcomes

Thiaw outlined some of the key outcomes expected from COP16, including decisions on proactive drought resilience strategies to prepare communities, businesses, and governments for future droughts rather than simply reacting to crises.

An additional focus is scaling up commitments to restore degraded land, with a global reserve of 1.5 billion hectares of damaged land, and reversing the trend of losing fertile soil annually — an area the size of Egypt.

He stressed that financing is central to these efforts: “We have indicated in our reports that the world needs to invest $1 billion per day. $1 billion per day needs to be invested in land restoration worldwide. Now that is a huge figure. It’s not small. This is not necessarily only public funds, but also private funds.”

Thiaw added: “Not only public funds, but also private funds. The private sector must invest to sustain productivity, while harmful taxpayer-funded subsidies should be redirected toward environmentally friendly and land-friendly activities.”

Collaboration with Saudi Arabia

To address these pressing challenges, Thiaw expressed the UNCCD’s eagerness to collaborate with Saudi Arabia in integrating advanced technologies with traditional practices.

“Our ambition is to help countries transition effectively, and Saudi Arabia is uniquely positioned to lead this effort,” Thiaw said, highlighting the Kingdom’s capacity, energy, and financial resources.

He added: “Now, there is a lot of discussion at the moment under the climate negotiations to see whether we can have net zero in terms of emissions. But if you are to achieve net zero in terms of emissions, it is not only emissions coming from industry, but emissions coming from land use, because land use is the second-largest emitter.”

Thiaw emphasized that degrading land increases carbon emissions, whereas restoring land acts as a natural solution by capturing carbon and returning it to the soil, thus helping to mitigate climate change.

The progress showcased at the Saudi pavilion highlights how merging traditional practices with advanced technologies can pave the way for sustainable energy transitions, better land and water management, and long-term environmental and economic stability. This model serves as a benchmark for addressing resource challenges in arid regions and other vulnerable areas globally.


Pakistani fintech secures $52 million funding to grow Islamic finance business, plans Middle East foray

Updated 14 sec ago
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Pakistani fintech secures $52 million funding to grow Islamic finance business, plans Middle East foray

  • Funding includes $5 million in equity, $47 million in strategic financing, will support Haball’s growth plans for Pakistan
  • The money will also help Haball’s expansion into the Middle East, starting with Saudi Arabia this year, company said 

KARACHI: Haball, a Pakistan fintech firm, raised $52 million to expand its Shariah-compliant supply chain financing and payments services, the company said on Tuesday.
The funding, led by Zayn VC and Meezan Bank, includes $5 million in equity and $47 million in strategic financing and will support Haball’s growth plans for Pakistan, the company said in a statement.
The money will also help Haball’s expansion into the Middle East, starting with Saudi Arabia this year, it added.
“Supply chain finance in Pakistan is nascent but is expected to be worth over $9 billion; driven by the severe financing gap faced by the country’s SMEs – less than 5 percent can access financing from commercial banks,” the company statement said.
Islamic banking and finance has been growing rapidly in Pakistan, the world’s second most populous Muslim country, with assets reaching 9,689 billion Pakistani rupees ($34.54 billion)at the end of June 2024, according to the Quarterly Islamic Banking Bulletin released by the State Bank of Pakistan.
The market share of assets and deposits of the Islamic banking sector in the overall banking industry stood at 18.8 percent and 22.7 percent, respectively.
The central bank has a target of 30 percent of overall banking assets and deposits to be Islamic by this year, according to its strategic plans for 2023-2028.
Haball says it provides shariah-compliant financing to nearly 8,000 small and medium-sized enterprises (SMEs) as well as multinationals, in addition to digital invoicing, payment collection, and tax compliance services.
“Haball has processed over $3 billion in payments and disbursed over $110 million in financing – optimizing supply chains across the country,” said the firm’s founder and CEO, Omer bin Ahsan.
Islamic finance bans interest payments and pure monetary speculation and can only be used to invest in Shariah-compliant assets or portfolios. ($1 = 280.5000 Pakistani rupees)


Closing Bell – Saudi stocks defy regional trend with 1% gain as Gulf markets decline

Updated 07 April 2025
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Closing Bell – Saudi stocks defy regional trend with 1% gain as Gulf markets decline

RIYADH: Saudi Arabia emerged as the sole gainer among Gulf markets on Monday, with the Tadawul All Share Index rising 1.05 percent to close at 11,194.02, up 116.83 points. 

The advance stood in sharp contrast to regional peers, all of which closed in negative territory, highlighting investor confidence in the Kingdom’s market despite broader pressures.

The rebound followed two consecutive sessions of losses driven by concerns over newly announced US tariffs. 

Trading activity was strong, with TASI’s turnover reaching SR10.5 billion ($2.8 billion), as 150 stocks advanced and 91 declined. 

The MSCI Tadawul Index also gained 1.07 percent to 1,420.65. The parallel market Nomu inched up 0.01 percent to 28,650.28, with 35 stocks rising and 50 falling. 

Other Gulf markets closed lower, as Abu Dhabi fell 2.58 percent, Dubai dropped 3.07 percent, and Bahrain declined 1.15 percent. Qatar also slid 0.35 percent, Muscat lost 0.68 percent, and Kuwait edged down 0.64 percent.  

On TASI, the National Co. for Learning and Education was the best-performing stock of the day, with its share price surging by 8.84 percent to SR160.

Other top performers included Mutakamela Insurance Co., which saw its share price rise by 7.18 percent to SR15.22, and ACWA Power Co., which saw a 6.77 percent increase to SR331.  

Kingdom Holding Co. rose 5.67 percent to SR8.39, while Aldrees Petroleum and Transport Services Co. gained 5.26 percent to SR132.

Batic Investments and Logistics Co. saw the steepest decline of the day, with its share price easing 9.80 percent to close at SR2.21.

Saudi Real Estate Co. fell 6.02 percent to SR20.30, while Middle East Specialized Cables Co. dropped 5.71 percent to SR31.35.

Nama Chemicals Co. also faced a loss in today’s session, with its share price dipping 5.58 percent to SR28.75, while Red Sea International Co. saw a 5.49 percent drop to settle at SR35.30.  

On the announcement front, Dallah Healthcare has completed the acquisition of 97.41 percent of Al-Ahsa Medical Services and 100 percent of Al-Salam Medical Services from Ayyan Investment Co. 

The transaction involved issuing 3.89 million shares and a cash payment of SR143.37 million. 

As a result, Dallah’s capital increased by 3.99 percent to over SR1.015 billion. Concurrently, Dallah settled SR176.46 million in dues owed to Ayyan and agreed on further receivables of SR30.97 million. 

The financial impact is expected to reflect in the first quarter of 2025, following the update of ownership records and completion of payment on April 6, according to a bourse filing. 

The company’s share price rose 3.31 percent on Monday to reach SR125. 

Arabian Drilling announced the acquisition of a new self-elevating service vessel valued at approximately SR260 million, including shipyard modifications and mobilization. 

The purchase was financed internally and expands the company’s fleet to 62 units, including 49 land rigs, 11 offshore jack-up rigs, and two service vessels. 

The new asset is expected to begin operations by mid-2025 under a two-year contract, contributing to a backlog exceeding SR170 million. 

The firm stated the acquisition supports its expansion into complementary service activities in the Arabian Gulf, where it currently operates one service vessel. 

Arabian Drilling’s share price rose 0.12 percent on Monday to reach SR84.20. 

Scientific & Medical Equipment House Co. has secured a contract worth SR44.52 million from the Madinah Health Cluster to provide nutrition services to three hospitals: the Specialized Psychiatric Hospital, Dar Nakehi Hospital for Psychiatric Disorders, and Al-Haram New Hospital in Madinah. 

The contract, inclusive of VAT, will be implemented over a five-year period. The company expects the financial impact to begin in the third quarter of 2025. 

It confirmed that all necessary approvals and signatures have been obtained, and it will announce any further developments as needed. 

The company’s share price rose 3.51 percent to SR38.30 on Monday. 


UAE sets tax nexus rules for non-resident investors in real estate, funds 

Updated 07 April 2025
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UAE sets tax nexus rules for non-resident investors in real estate, funds 

RIYADH: The UAE has issued new guidelines that clarify when foreigners and non-residents will be treated as having a taxable presence in the country when it comes to real estate and investment funds.

The updated rules, announced by the Ministry of Finance, are aimed at reducing compliance burdens and increasing transparency, reported the Emirates News Agency, also known as WAM. 

The decision outlines conditions under which a non-resident juridical person — typically a legal entity — would be considered to have a nexus in the UAE, and therefore be subject to corporate tax. 

Under the new rules, a nexus is deemed to exist for non-resident juridical investors in Qualifying Investment Funds in specific cases. If the fund distributes at least 80 percent of its income within nine months from the end of its financial year, the nexus is triggered on the date of dividend distribution. 

If that threshold is not met, the nexus is established on the date the ownership interest is acquired. A nexus will also apply if the fund fails to meet diversity of ownership conditions during the relevant tax period. 

The same logic applies to Real Estate Investment Trusts, where a nexus is triggered either on the date of dividend distribution — provided 80 percent or more of income is distributed within nine months — or from the date of acquiring ownership if the condition is not satisfied, according to WAM.

Outside of these scenarios, non-resident juridical persons that invest exclusively in QIFs or REITs will not be considered to have a taxable presence in the UAE. 

The ministry said the decision is intended to ease compliance requirements for foreign investors while supporting the country’s goal of fostering a transparent and competitive tax environment.

In December, the UAE announced the implementation of a 15 percent minimum top-up tax on large multinational companies, effective January. 

The move aligns the country with the Organisation for Economic Co-operation and Development’s global minimum tax framework, aimed at curbing tax base erosion and profit shifting by ensuring large corporations pay a minimum level regardless of where they operate.  


GCC markets provide strong hedge against global economic chaos

Updated 07 April 2025
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GCC markets provide strong hedge against global economic chaos

  • EFG Hermes forecasts strong growth citing strategic diversification

DUBAI: Amid the ongoing global economic turbulence, the Gulf Cooperation Council region has demonstrated resilience, emerging as a dynamic hub. Its capital markets have weathered challenges, from US tariff shocks to fluctuations in oil prices, according to the group chief executive of EFG Holding.

In an interview with Arab News at the 19th Annual EFG Hermes One-on-One Investor Conference in Dubai, Karim Awad highlighted the region’s solid fundamentals, emphasizing that concerns over external shocks often overshadow its long-term growth potential.

“You’re seeing more IPOs coming to the region, and more sectors that are being represented on different exchanges, and this is all a reflection of the dynamism of the region as a whole,” Awad said.

Dismissing concerns over the effects of new US tariffs, Awad told Arab News that that the 10 percent tariff “is not a massive game-changer,” especially compared to the situation with China, but the panic tends to spread.

This optimism persists despite the global uncertainty, which includes rising US-China trade tensions, volatile oil prices, and ongoing geopolitical conflicts. However, Awad stressed that the GCC’s young, tech-savvy population and ongoing efforts toward economic diversification are unlocking unprecedented opportunities for growth.

“Investors are interested in a multitude of sectors. You have a young region, very dynamic technologies coming through today, a lot of tech companies. They like to see the different sectors that are coming from the region,” he said.

Away said the investors value the increasing economic diversification, as it’s not just about oil and gas, which is often the misconception. There is much more to offer, the top executive added.

Saudi Arabia’s diversification plans

Ahmed Shams, the head of research at EFG Hermes, an EFG Holding company, shared Awad’s optimistic views, particularly regarding Saudi Arabia.

Shams explained to Arab News that the Saudi market is driven by two key factors. The first is the transformation and economic diversification plans, and the second is the depth of the financial market, along with the crucial role of capital markets in funding these transformation efforts.

He acknowledged that oil price volatility could cause potential delays in Vision 2030 projects but emphasized that the long-term direction remains unchanged.

“There is no turning back, meaning that this will not derail the economic reform and the economic diversification program in Saudi Arabia. It could lead to some delays and reprioritization and recalibration,” he said.

Shams was particularly optimistic about the Saudi real estate sector. “The demand is huge. But there is an imbalance in the supply and demand, and this is a golden opportunity,” he said, adding that “90 percent of the announced projects, whether they’re PIF-owned or even the private sector players, will not be impacted.” 

Shams also expressed a positive outlook on utilities companies in the Kingdom and shared similar optimism about the banking sector.

“I would say even before the crisis, the valuation was very reasonable to see a bank in Saudi trading almost at book value. This is very interesting.”

Egypt’s reform story

Awad highlighted Egypt’s progress in fintech. “In Egypt, we have one of the best fintech companies, which is Valu, a company that offers buy now, pay later services. It is a company that we started from scratch and pretty much revolutionized the buy now, pay later market in Egypt,” he said.

Mohamed Ebeid, Co-CEO of EFG Hermes, highlighted the firm’s growth in the equity capital markets, noting that EFG Hermes executed deals worth $20 billion last year.

“This is 14 deals in terms of ECM (equity capital market), be it IPOs or accelerated book builds or FMOs (financial market operations),” he told Arab News.

However, the top official noted Saudi Arabia’s challenges in allocating shares to foreign investors due to oversubscription. “International investors are not getting the allocations that they ask for. It’s because there’s oversubscription, that’s No.1. No.2 , the banks, we do the recommendation for the issuer, but the issuer decides and has the final say,” Ebeid explained.

Egypt’s economic resilience was a key focus, with the country’s deputy governor of the central bank, Rami Aboulnaga, outlining the nation’s proactive approach to managing global shocks.

“We’ve been building these buffers throughout the past years to ensure we can immune ourselves and minimize damage from these types of crises,” he stated in a panel discussion during the conference, highlighting Egypt’s transition from a  $29 billion net foreign asset deficit to a  $10 billion surplus since January 2024.

Aboulnaga emphasized that although global trade slowdowns may affect Suez Canal traffic, Egypt’s diversified strategy — where only 7 percent of total trade volume is tied to the US — provides a level of insulation.

He described the foreign exchange market as functioning as a “shock absorber,” enabling real-time adjustments that help prevent structural imbalances.

The deputy governor particularly stressed the importance of policy sustainability, highlighting that February’s inflation drop to 12.8 percent validated Egypt’s orthodox policy mix. He also noted that upcoming reviews by the International Monetary Fund would further solidify the country’s reforms.

“What we’re seeing is very healthy and sustaining it is quite possible because you avoid these one-off hits,” Aboulnaga said.

Dubai’s accessibility boom

The conference’s panel discussions reinforced these themes, with Dubai’s leaders highlighting the emirate’s booming real estate sector and investor-friendly policies.

The CEO of Dubai Economic Development Corp., Hadi Badri, said: “The real estate investment market continues to be very strong. Last year, it grew in terms of value by 27 percent. Coincidentally, that’s the same rate of growth that the Dubai Financial Market index also grew.”

He added that demand continues to outstrip supply. “Our biggest constraint today in Dubai, to be able to attract as many businesses as we are able to attract, is office space,” Badri said.

The CEO of Dubai Financial Market and Nasdaq Dubai, Hamed Ali, emphasized the efforts to attract foreign investors. He reported that last year, the market gained 437,000 new investors, with about 85 percent of them coming from outside the UAE. He shared this during a panel discussion at the event.

Global headwinds

Despite the regional optimism, speakers acknowledged global challenges, such as US tariffs and the potential for stagflation. However, they argued that the MENA region remains relatively insulated from these issues.

Shams told Arab News that the impact had been evident on global trade and the inflation the world experienced post-COVID. He explained that part of this was due to the injection of money supply, while another part was attributed to supply chain disruptions and the reconfiguration of the global grid.

As the conference concluded, EFG Hermes leaders emphasized a unifying message: the MENA region’s story remains intact. While volatility may persist, they argued that strategic positioning — whether in Saudi megaprojects, Egyptian fintech, or Dubai’s property market — provides a hedge against global chaos.

“You should start deploying the market,” Ebeid urged investors, capturing the event’s defiant optimism.


PIF’s AviLease signs deal with Turkish Airlines for 8 Airbus A320neo aircraft

Updated 07 April 2025
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PIF’s AviLease signs deal with Turkish Airlines for 8 Airbus A320neo aircraft

RIYADH: AviLease, an aircraft leasing firm owned by Saudi Arabia’s Public Investment Fund, has signed a memorandum of understanding with Turkish Airlines for long-term contracts for eight Airbus A320neo aircraft. 

According to a press statement, two aircraft have already been provided, with the remaining six scheduled for delivery throughout 2025. 

PIF launched AviLease in 2022 to harness the potential of promising sectors within the Kingdom, aiming to drive economic diversification and contribute to the growth of the non-oil gross domestic product.

The launch of the company also aligns with Saudi Arabia’s Vision 2030 goal to establish the Kingdom as a leading player in the aviation sector. 

“We thank the Turkish Airlines team for their partnership, and we are delighted to further strengthen our relationship,” said AviLease CEO Edward O’Byrne. 

He added: “These aircraft will support Turkish Airlines’ growth plans while contributing to their fleet modernization strategy and sustainability goals.” 

The press statement further said that AviLease’s portfolio currently consists of 200 owned and managed aircraft, including purchase commitments, on lease to 48 airlines.

In March, AviLease delivered three Airbus A320neo aircraft to SDH Wings. SDH Wings is a joint venture between the Saudi firm and the Chinese sovereign fund, where the Kingdom holds a 10 percent stake.

In February this year, the company gave a specialized Aviation Financing Course to over 150 professionals in partnership with Prince Sultan University and Riyad Bank. 

At that time, AviLease, in a press statement, said that it aimed to support the Kingdom’s Vision 2030 program by preparing Saudi talent to lead the aviation finance sector on both a national and global scale.

The company added that it will continue to drive local economic opportunities and create direct and indirect jobs for Saudi nationals in the aviation and financial sectors.