Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

Saudi Energy Minister Prince Abdulaziz bin Salman speaks at the opening of the fourth edition of the Saudi Green Initiative Forum in Riyadh.
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Updated 06 December 2024
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Saudi Arabia’s shift to renewables is reaping economic rewards, says minister

RIYADH: Saudi Arabia is the only country profiting from the global energy transition due to its sound economic approach, feasibility studies, and solid partnerships, according to the Kingdom’s energy minister.

Speaking at the opening of the fourth edition of the Saudi Green Initiative Forum in Riyadh, which runs from Dec. 3-4, Prince Abdulaziz bin Salman emphasized that Saudi Arabia is uniquely positioned to benefit from its shift toward a sustainable energy economy, particularly in comparison to other nations.

The Kingdom boasts the second-lowest methane intensity among major oil and gas producers. It also ranks second globally in terms of crude oil carbon intensity and plans to tender 20 gigawatts of renewable capacity in 2024 — a target exceeded only by China and the US.

“We are the only country on planet Earth that is making money out of the transition. Why? Because we are honest about our transition, we don’t do things without going through economics, without feasibility studies, without even choosing solid partners,” the minister explained.

“Total is a good example. They are working with us on petrochemicals, on gas stations, on renewables,” he added.

Prince Abdulaziz further noted that part of the Kingdom’s transition strategy involves replacing one million barrels of oil per day with gas and renewable energy — a significant milestone.

He stressed that energy security should not be compromised in the transition. “By the way, you would not be able to secure the other two, which are affordability and sustainability. The reality check is that the three things have to go hand in hand, and you should not compromise, and compromising one of the things will lead you to forfeit the other two, especially energy security,” he said.

On the Kingdom’s Vision 2030, the minister expressed confidence in long-term plans, stating: “I know for certain that there will be a 2040, there will be a 2050 because it works. People are on their doors; people are held accountable. People want to deliver because they see that whatever they were they’re delivering is impacting their daily life, is improving their lot.”

He continued: “We have a lot to show, and we want to make sure that aside from our commitments, with its own durations, we want to put this event, especially this Saudi Green Initiative, to make sure that people can continue seeing us progress our progress here in this country in a voluntary way because we are self-assured that every year we shall expose the world to new achievements, new targets, new approaches, and we are not shy from gathering people to see it.”

During the first day of the event, the Ministry of Energy signed 10 agreements and memorandums of understanding with various companies.

One of the key agreements focuses on deploying a carbon capture and utilization hub in Yanbu Industrial City, in collaboration with the Royal Commission for Jubail and Yanbu. The Ministry also signed a deal with King Abdullah University of Science and Technology on cryogenic carbon capture and another with the King Abdullah Petroleum Studies and Research Center and Climeworks for a direct air capture feasibility study.

Other MoUs included partnerships with Academy 32 to support the Regional Collaboration Initiative for Emissions Reduction, and with JEDCO and Tarshid to enhance energy efficiency efforts. Additionally, the Ministry inked agreements with SAL and Tarshid for a detailed facility study, and with Lindea and the Middle East Green Initiative to develop clean cooking solutions.

A funding agreement for the Clean Cooking Initiative was also announced in collaboration with Sipchem and the Middle East Green Initiative, as well as a similar deal focused on air products.

The Ministry of Energy also revealed plans to implement carbon-cured concrete in NEOM, in partnership with Abdullah Abdin, CarbonCure, and Gulf Cryo.

During the event, the Ministry of Energy and the Ministry of Economy and Planning also announced the winners of the Carbon Capture and Utilization Challenge. 

In fifth place was Gasgene for converting carbon to ethanol and acetone chemicals, biofuels, and animal proteins. Dioxycle secured fourth place for converting carbon to ethylene used for plastics, chemicals, rubber vinyl, and medical applications.

In third place was Carbon to Stone for converting carbon to carbonate users for construction materials. D-CRBN won second place for converting carbon to chemicals, fuels, organic acids, and polymers. 

Up Catalyst came in first place for converting carbon to battery-grade graphite and nanomaterials.

Commenting on the winners, Fasial Al-Ibrahim, the Saudi minister of economy and planning, said: “The winners today embody the spirit of innovation and ingenuity that is proving invaluable in our pursuit of a more sustainable world.” 

He added: “When it comes to the solutions that we’ve seen, we’re looking forward to implementing them on the ground.” 

Al-Ibrahim went on to stress how there’s no better place in the world for bold thinkers to collaborate, act, innovate, and solve the world’s greatest challenges than in Saudi Arabia. 

“We recognize that the climate crisis knows no borders, and neither should our solutions. We must scale solutions without borders. Decarbonizing the industry, energy, and power sectors, which depend on carbon management, will go a long way to fully build a sustainable and climate-resilient economy, and that is why this challenge matters,” he said.

This year’s edition of the Saudi Green Initiative Forum, held during COP16, aims to tackle pressing global environmental challenges, such as land rehabilitation, carbon reduction innovations, and sustainable financing. It will also explore the role of natural solutions in helping communities adapt to climate change, while emphasizing efforts to preserve the Kingdom’s rich biodiversity, according to an official statement.


Global economy to grow steadily in 2025 despite market shifts, say experts at Saudi forum 

Updated 18 February 2025
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Global economy to grow steadily in 2025 despite market shifts, say experts at Saudi forum 

RIYADH: The world economy is set to maintain steady growth in 2025, buoyed by resilient fundamentals despite market volatility and structural shifts, according to Citigroup’s Global Chief Economist Nathan Sheets. 

Speaking at the Capital Markets Forum in Riyadh, Sheets outlined key themes shaping the year ahead, focusing on global economic resilience, normalization of inflation and interest rates, and exceptionalism in market performance. 

“During the year ahead, the relatively solid fundamentals of the global economy are likely to transcend any kinds of uncertainties that we face,” Sheets said during the event, which runs from Feb. 18 to 20. 

Emerging markets also took center stage, with Raman Subramanian, managing director and global head of index research and development at MSCI, emphasizing the growing role of the Gulf Cooperation Council in global indices. 

“Digging deeper into the MSCI Emerging Market Index, you see the weight of the GCC has gone from about 1.5 percent to about 7 percent today,” he said. 

Subramanian also noted technology’s rising prominence in global benchmarks, with AI-adjacent sectors now accounting for over 30 percent of industry weight. 

Meanwhile, Ahmed Shams El-Din, managing director and head of global research at EFG Hermes, described the Middle East as a promising region for growth and value creation but noted its uneven development. 

“Countries are very different in terms of economic fundamentals, in terms of the opportunities for growth and the challenges each country is facing on a standalone basis,” he explained. 

Economic diversification and non-oil growth remain central themes, with Saudi Arabia and the UAE leading the way. Shams El-Din cautioned, however, that population growth and capacity constraints could moderate the pace of expansion. 

“Capacity constraint and funding challenges are going to play out parallel to the real developments that we are seeing on the ground,” Shams El-Din said. 

Subramanian also highlighted major trends shaping global markets, including technology transformation, health care, environmental resource management, and evolving societal and lifestyle shifts. 

“The move toward renewables has really impacted the way investors are allocating to the energy sector,” he added. 

The forum, held at the KAFD Conference Center, is set to explore deeper macroeconomic trends and capital market shifts. Key sessions include discussions on the Middle East’s growing role as a financial hub and the future landscape of global markets.


Oil Updates — prices edge higher on Kazakhstan supply disruption

Updated 18 February 2025
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Oil Updates — prices edge higher on Kazakhstan supply disruption

RIYADH: Brent crude oil prices advanced on Tuesday, adding to gains in the previous session after a drone attack on an oil pipeline pumping station in Russia reduced flows from Kazakhstan, but gains were capped on the prospects of supply rising soon, according to Reuters.

Brent crude futures gained 15 cents, or 0.2 percent, to $75.37 per barrel at 07:54 a.m. Saudi time. US West Texas Intermediate crude futures were up 67 cents from Friday’s close at $71.41 a barrel. There was no settlement for WTI on Monday due to the US Presidents’ Day holiday.

“The overriding theme driving oil prices lately has been around supply expectations. With the weakness in prices over the past weeks, news of a drone strike on Kazakhstan’s export pipeline in Russia has provided the catalyst for some bearish sentiment to unwind,” IG market strategist Yeap Jun Rong said in an email.

The drone strike on the Kropotkinskaya station in Russia’s southern Krasnodar region reduced shipments from Kazakhstan to world markets by Western firms including Chevron and Exxon Mobil, operator Caspian Pipeline Consortium said on Monday.

The Black Sea CPC Blend oil loading plan for February would remain unchanged, two sources familiar with the plan told Reuters.

“However, longer-term gains are likely to remain capped as the market may anticipate higher supplies from OPEC+ and Russia further down the road, while improvement in demand outlook particularly from China still remains uncertain, going by recent economic data,” IG's Yeap said.

BMI analysts said in a note that they see Brent prices averaging $76 a barrel in 2025, down 5 percent from the 2024 average, because of market oversupply, tariffs and trade tensions.

OPEC+ producers are not considering delaying a series of monthly oil supply increases scheduled to begin in April, according to a Russian state media report.

In December, OPEC had pushed back a plan to begin raising output to April, due to weak demand and rising supply outside the group.

Markets were also waiting to see if Russia-Ukraine peace talks will bear fruit, as US and Russian officials meet for talks in Saudi Arabia later on Tuesday.

“There is seemingly plenty to be bearish about in the crude market, the biggest factor now being the outcome of Ukraine negotiations. Russian oil may partially come back to the legitimate market, though there are of course many permutations as to the end result here,” said Sparta Commodities analyst Neil Crosby.


Saudi minister highlights strong ties as Kingdom and Egypt sign energy efficiency deal

Updated 18 February 2025
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Saudi minister highlights strong ties as Kingdom and Egypt sign energy efficiency deal

  • Prince Abdulaziz bin Salman says joint initiatives will enhance regional energy security, sustainability
  • Saudi companies to launch 5 new solar and wind energy projects in Egypt as part of collaboration

CAIRO: Saudi Arabia’s Minister of Energy, Prince Abdulaziz bin Salman, reaffirmed the Kingdom’s commitment to strengthening energy cooperation with Egypt during his address at the Egypt Energy Show on Monday.

The minister was speaking after the signing of an executive plan between Saudi Arabia and Egypt aimed at enhancing cooperation in the field of energy efficiency.

Under the executive plan, both countries will work together to establish a national energy efficiency program in Egypt, which will include drafting regulations and technical standards, capacity building, raising awareness, and fostering the development of energy service companies.

Prince Abdulaziz emphasized the brotherly relationship between Saudi Arabia and Egypt, saying that both nations share a responsibility to lead the transformation of the energy sector and adding that the collaboration aligned with Saudi Vision 2030 and Egypt’s strategic energy transformation goals.

In his address, the minister thanked Egypt’s leadership and its role in fostering robust relations between the two nations, and he highlighted the several major joint energy initiatives announced on Monday as ways of enhancing regional energy security and sustainability.

As part of the collaboration, five new solar and wind energy projects will be launched in Egypt by Saudi companies, boasting a combined capacity of 1.696 gigawatts and an investment of about SR6.2 billion ($1.65 billion). 

The projects will be developed by ACWA Power, Alfanar, FAS, and MOWAH.

Additionally, ACWA Power has signed a power purchase agreement with the Egyptian Electricity Transmission Company for a 2GW wind energy project in South Hurghada.

With an investment of SR8.6 billion, the initiative is set to become the largest wind energy project in Egypt, further advancing the country’s renewable energy ambitions.

The Saudi-Egypt Electricity Interconnection Project was also highlighted as a significant step toward regional cooperation, with a SR6.7 billion investment and the ability to exchange 3,000 MW of electricity between the two nations once completed.


Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN

Updated 17 February 2025
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Saudi wealth fund’s SURJ Sports Investment acquires minority stake in DAZN

RIYADH: SURJ Sports Investment, the sports arm of the Public Investment Fund, has acquired a minority stake in DAZN to broaden broadcasting opportunities and enhance access to both live and on-demand sports content.

This strategic investment aims to support the growth of Saudi Arabia’s sports sector while bolstering DAZN’s presence in the Middle East and other key markets, according to an official statement released on Monday.

As part of the deal, SURJ and DAZN will launch DAZN MENA, a joint venture designed to elevate sports broadcasting capabilities across Saudi Arabia and surrounding markets.

“This investment is in line with SURJ’s mission to drive fan engagement, boost sports participation, and unlock transformative opportunities, all while positioning the region as a hub for world-class sports,” said Danny Townsend, CEO of SURJ Sports Investment.

The collaboration is set to accelerate the growth of the broader sports sector by enhancing fan engagement and supporting initiatives that encourage sports participation.

“As part of the DAZN MENA joint venture with SURJ, DAZN is committed to expanding sports access and delivering an unparalleled entertainment experience to a global community of passionate fans,” added Shay Segev, CEO of DAZN.

Earlier in January, SURJ entered into a strategic partnership with US-based Enfield Investment Partners. This collaboration is focused on co-investing in global sports properties, including teams, leagues, media rights, and infrastructure. Enfield launched a $4 billion global sports asset fund and will establish a presence in SURJ’s Riyadh offices to support mutual growth and objectives.

Founded in 2023, SURJ Sports Investment is dedicated to international sports investments and advancing Saudi Arabia’s sports ecosystem. Its strategy encompasses investments in broadcasting, digital platforms, grassroots initiatives, and fan engagement.

Through this partnership, DAZN will serve as a key streaming and broadcasting partner for Saudi sports, significantly expanding their reach to a global audience. Operating in over 200 markets, DAZN has built a platform that integrates live sports streaming with interactive digital experiences.

The agreement with SURJ is expected to usher in new broadcasting technologies and further expand the accessibility of sports media in the region.


Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal

Updated 17 February 2025
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Saudi Arabia unveils $7.7bn mining investments in Wa’ad Al-Shamal

RIYADH: Saudi Arabia’s mining sector is poised for a major boost with nearly SR29 billion ($7.7 billion) in investments being directed toward the city of Wa’ad Al-Shamal.

Prince Faisal bin Abdulaziz, governor of the Northern Borders region, inaugurated a series of industrial, developmental, and hospitality projects aimed at solidifying the city’s role as a major hub for the Kingdom’s mining industry.

A major highlight of the announcement was the launch of Ma’aden’s Phosphate 3 project, backed by the Shareek program and an investment of SR28 billion.

This initiative is set to increase Saudi Arabia’s phosphate production capacity to 9 million tonnes annually, building upon the existing Phosphate 1 and Phosphate 2 projects, each producing 3 million tonnes. This expansion is expected to bolster the country’s industrial supply chain, generate new investment opportunities, and create employment within the sector.

The governor emphasized that these projects align with Saudi Vision 2030, which aims to expand the mining sector’s contribution to the national economy.

He highlighted that Wa’ad Al-Shamal has transformed into a model for integrated industrial cities, combining major industries, logistics services, and modern residential communities, which enhance its appeal to both local and international investors.

The event was attended by Minister of Industry and Mineral Resources Bandar Alkhorayef, Deputy Minister for Mining Affairs Khalid Al-Mudaifer, and other key officials from both the public and private sectors.

Additionally, the Saudi Authority for Industrial Cities and Technology Zones launched several new industrial, logistical, and service projects, with investments exceeding SR550 million. These projects include infrastructure development in the industrial zone, which spans 4.3 million sq. meters. As part of this initiative, 32 ready-built units have been established, consisting of 20 pre-built factories and 12 support units covering a combined area of 45,000 sq. meters.

Further key developments include a 132 kilovolt, 200 megavolt-amperes power substation, overhead transmission lines, and a 7-km bridge connecting the industrial zone to the international highway. These projects aim to improve logistics and energy reliability, creating an attractive environment for investments, particularly in the phosphate industry.

In addition, the governor inaugurated the expansion of Ma’aden’s residential city in Wa’ad Al-Shamal, adding 96 new residential units. This brings the total number of housing units to 579, supporting industrial and mining sector employees and their families.

To complement the region's infrastructure improvements, the Movenpick Wa’ad Al-Shamal Hotel, developed with an investment exceeding SR500 million, was officially opened. The five-star hotel is designed to cater to the growing accommodation demand from workers, investors, and visitors to the industrial city and Northern Borders region, further enhancing Wa’ad Al-Shamal’s position as an integrated industrial and investment hub.

As part of broader efforts to advance the mining sector, Alkhorayef, along with the deputy minister for mining affairs and other officials, visited several industrial and developmental projects in Wa’ad Al-Shamal and the Northern Borders region.

The tour included a visit to the Scientific Excellence School in Arar, where the minister reviewed modern training laboratories and met with students and faculty. Established through a partnership between Ma’aden and the Ministry of Education with an investment of approximately SR180 million, the initiative seeks to promote scientific education and develop expertise in STEM fields.

The minister also toured the Saudi Technical Institute for Mining in Arar, which has trained over 1,081 students, including 52 female graduates, in a range of specializations such as underground and surface mining, mining operations, and mechanical and electrical maintenance. Equipped with advanced mining simulation and training facilities, the institute plays a pivotal role in workforce localization and preparing Saudi talent for the mining industry.

The tour also included a visit to the Hazm Al-Jalamid mine, one of the Kingdom’s key phosphate mining sites, producing more than 11 million tonnes of phosphate ore annually.

The Northern Borders region is home to extensive mineral resources valued at approximately SR4.669 trillion.

It is a major source of phosphate, a critical element in global food security due to its role in agricultural fertilizer production. The region also contains high-quality deposits of coal, dolomite, limestone, and silica sand. It currently holds five phosphate ore reserve sites and 29 active mining licenses, including 15 for building materials and 14 for mineral extraction.