Saudi Arabia, IAEA discuss cooperation on development of nuclear energy

Along with KHNP and the IAEA engaging in discussion with Saudi Arabia to help the country realize its nuclear ambitions, the World Nuclear Association, the global nuclear industry trade body, has also been holding talks with the Kingdom. File
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Updated 08 December 2023
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Saudi Arabia, IAEA discuss cooperation on development of nuclear energy

DUBAI: The International Atomic Energy Agency, the global overseer of the nuclear industry, says it is collaborating with Saudi Arabia to assist the Kingdom in developing its nuclear power production sector.

Given its key role in the regional energy landscape, there is a pressing need for production to transition from fossil fuels to low-carbon or zero-carbon emitting sources.

Wei Huang, director at the Department of Nuclear Energy of IAEA told Arab News in an interview on the sidelines of the 2023 Climate Change Conference that the Kingdom’s “very fast development” towards nuclear energy has been noticed by the agency.

“Now they are in the bidding process to try to get nuclear power into their energy mix. So, we hope we can see a substantial outcome of this process. We are seeing quite strong interest in this region in using nuclear power to improve the energy mix and the security energy mix, but also help to decarbonize the greenhouse gas emissions in the region,” he said.

Huang noted it is encouraging that the countries in this region, which are rich in fossil fuels, are now looking at nuclear energy as an alternative to minimize carbon emissions. He added that the IAEA supports member nations looking to develop nuclear power production. 

“Our agents provide a lot of technical support to make sure the country can be prepared well before they are moving toward nuclear power, including help them to review their infrastructure.”

He added that there are 19 milestones that every country must achieve before taking the nuclear route and that IAEA assists them in reaching these landmarks, which cover a vast spectrum from nuclear, finance, funding, human resources, safety and safeguards.

Huang welcomed statements from US Special Envoy on Climate Change John Kerry, voicing his appreciation for Kerry’s emphasis on global collaboration in nuclear fusion. He highlighted the proactive engagement of the IAEA in nuclear fusion technology alongside its partners and member states.

“We see quite a significant development in this area. Of course, compared to fission, which has been widely used over decades, there is still a lot of work to be to be done to make sure that fusion can be really be deployed in the coming decades. And so our agency has, you know, discussed with our member states and also partner to see how much we can do. We are now working on how to transfer nuclear fusion from mainly the science focus to more engineering-focused activities, including the regulatory framework on the fusion. So this is what the agency is doing now and there will be a lot of work to be done in a couple of years to make sure all the aspects had been prepared well for,” Huang said.

While Saudi Arabia is at the initial stage of nuclear power development, its neighbor, the UAE, has already established three operational units at its Barakah Nuclear Power Station, while the fourth unit is in the pipeline. 

“At Barakah, we have four units, of which three are operational. The fourth unit will come online soon. Together, the four units will produce about 5.6 gigawatts of electricity, which is equivalent to 25 percent of the total electricity production in the UAE. At Barakah, we have used APR1400 reactors, a Generation 3+ nuclear reactor built with Korean technology, constructed to the highest level of safety and quality. Moving forward, we would like to invest in other nuclear power plants and will examine all options,” Khaled Al-Shehhi, nuclear fuel quality surveillance manager at Emirates Nuclear Energy Corp., which owns Barakah, told Arab News.

The Barakah Nuclear Power Station is a $20 billion project bagged by the Korea Hydro & Nuclear Power Co., a state-owned enterprise and one of the world’s largest operators of nuclear power plants. The company says it is also looking to develop its exports in other markets.

“We are here at COP28 to introduce our Korea Small Modular Reactor known as i-SMR. They are really sustainable energy solutions that will help nations to reach net zero goals. Regarding the development and export of our i-SMR, KHNP is actively engaged in discussions with various countries, including Philippines and the UAE. The adoption of our i-SMR is expected to accelerate the journey toward a carbon neutrality, especially in countries facing infrastructure limitations for large nuclear power plants such as South East Asia region and some regions which have difficulties in tapping renewable energies,” Sonia Sunyoung Hong, SMR overseas business team manager at KHNP told Arab News.

She added that KHNP’s relationship with the UAE could be a perfect example for other nations in the region, including Saudi Arabia. 

“Our relationship with the UAE is a good example of how we get countries with no nuclear experience. For instance, when we began working with the UAE in 2009, the UAE government had no experience of nuclear industry. They did not have any regulations, guidelines at all. KHNP helped and supported the government in developing concrete regulations and guidelines for the nuclear power plant implementation for the first time for the world,” Hong said.

As well as the IAEA engaging in discussions with Saudi Arabia to help the Kingdom realize its nuclear ambitions, the World Nuclear Association, the global industry trade body, has also been holding talks with Riyadh, said King Lee, head of policy and industry engagement at WNA.

“Saudi Arabia has been planning to deploy nuclear energy, and they have been planning that for some time. It is really aimed to address that quality need for clean power. Currently, most of the electricity generated from Saudi Arabia is from fossil fuels, from both burning of gas and oil. So nuclear power can help to generate clean power for Saudi Arabia. So Saudi Arabia is looking for both large reactors and the small, more advanced technology, small modular reactors. So, both the technologies are being considered for Saudi Arabia. We have been discussing with the Saudi government and institutions,” the official told Arab News.

When discussing fusion energy, he agreed with Huang of IAEA that it was still an evolving technology. 

 “Fusion is a technology that is currently under development, and we continue to support the research and development so that, hopefully, fusion reactors will become technically and commercially deployable. Research is going on in many countries, but we don’t have a timetable on as to when it may become available,” the WNA executive added.


Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

Updated 01 April 2025
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Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles

RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.

The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.

South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.

The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.

In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”

Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”

Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.

Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.

Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.

Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.

Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”

Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”

Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.

“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.

“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.


Saudi MSME lending hits $94bn driven by government-backed reforms 

Updated 01 April 2025
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Saudi MSME lending hits $94bn driven by government-backed reforms 

RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data. 

The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent. 

MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector. 

In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion. 

Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share. 

Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period. 

The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent. 

To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at. 

Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending. 

The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding. 

In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs. 

Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification. 

According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide. 

The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year. 

Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir. 

This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector. 

The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth. 


New laws simplifying Saudi business registration to take effect

Updated 01 April 2025
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New laws simplifying Saudi business registration to take effect

RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3. 

Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported. 

The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added. 

The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce. 

The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030. 

Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”

He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.” 

Existing subsidiary registers will have a five-year grace period to comply with the new regulations. 

Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits. 

The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities. 

Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names. 

The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment. 

In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030. 


Saudia launches direct flights to Bali 

Updated 01 April 2025
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Saudia launches direct flights to Bali 

RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.

The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner. 

Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance. 

The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.

The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs. 

Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated. 

The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services. 

Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes. 

As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents. 

The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021. 

With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world. 

According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase. 

This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide. 


Middle East airlines witness 3.3% passenger demand growth in February: IATA 

Updated 01 April 2025
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Middle East airlines witness 3.3% passenger demand growth in February: IATA 

RIYADH: Airlines operating in the Middle East recorded a 3.3 percent year-on-year increase in passenger demand in February, with total flight capacity rising 1.3 percent during the same period, an industry report showed. 

The latest data from the International Air Transport Association revealed global passenger demand, both domestic and international, increased by 2.6 percent over the second month of the year. 

This growth comes as many Middle Eastern countries focus on boosting the aviation sector to help diversify their economies away from oil dependency, with Saudi Arabia seeking to triple passenger numbers by 2030 compared to 2019 levels.

Commenting on the latest report, Willie Walsh, director general of IATA, said: “February traffic hit an all-time high, and the number of scheduled flights is set to continue increasing in March and April.”  

The association added that the total load factor among carriers in the Middle East region stood at 82 percent in February, representing a rise of 1.6 percentage points compared to the same month in 2024. 

The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers.

A high load factor signifies that an airline has sold most of its available seats. 

IATA also reported that carriers in the Middle East handled 9.4 percent of global passengers in February, a figure that remained unchanged from January. 

Earlier this month, a report by consulting management firm Oliver Wyman stated that the fleet of commercial airlines in the Middle East is expected to grow at a compound annual growth rate of 5.1 percent from 2025 to 2035, reaching 2,557 aircraft. 

It added that this growth rate in the Middle East is nearly double the annual global growth rate, which is projected at 2.8 percent during the same period. 

Affirming the progress of the aviation sector in the Middle East, Saudi Arabia is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies later this year, with the aim of flying to 100 countries by 2030. 

In October, Riyadh Air signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft. 

In the same month, the company announced plans to order wide-body aircraft capable of seating more than 300 passengers in 2025. 

Riyadh Air is set to begin passenger flights this year. Shutterstock

According to IATA, international passenger demand growth increased by 5.6 percent in February compared to the same period in the previous year. 

However, international passenger demand growth was down compared to January, which witnessed a 12.3 percent rise. 

The report added that global domestic demand declined by 1.9 percent year on year in February. 

Africa witnessed a 6.8 percent rise in overall passenger demand, including both domestic and international, followed by Latin America at 4.6 percent, Europe at 4.3 percent, and Asia-Pacific at 4.2 percent. 

Air carriers operating in North America experienced a 3.2 percent decline in passenger demand. 

International passenger demand 

Airlines operating in the Asia-Pacific region led international passenger demand globally, marking a 9.5 percent growth in February compared to the same month in 2024. 

The total capacity of airlines in the APAC region rose by 8.3 percent year on year, while the load factor stood at 85.7 percent. 

APAC airlines handled 33.5 percent of global passengers in February, followed by Europe at 26.7 percent and North America at 22.9 percent. 

The report further indicated that international passenger demand among Middle East airlines increased by 3.1 percent in February compared to the same month in the previous year. 

The association also noted that the capacity of airlines in the Middle East region increased by 1.3 percent, while the load factor stood at 81.9 percent in February, representing a rise of 1.4 percentage points compared to the same month in 2023. 

According to IATA, international passenger demand among European air carriers rose by 5.7 percent year on year in February, while capacity increased by 4.9 percent during the same period. 

North American air carriers saw a 1.5 percent decline in international passenger demand growth, with capacity also decreasing by 3.2 percent. 

International passenger demand growth among Latin American airlines grew by 6.7 percent year on year in February, while capacity climbed by 9.9 percent. 

African airlines saw demand growth of 6.7 percent among international travelers. 

The capacity of these carriers also rose by 4 percent in February compared to the same month in 2024. 

Air cargo demand growth 

International cargo capacity increased slightly in February. Shutterstock

In a separate report, IATA revealed that air cargo demand declined slightly by 0.1 percent in February compared to the same period in the previous year, marking the first decline since mid-2023. 

Overall, cargo capacity, measured in available cargo tonne-km, decreased marginally by 0.4 percent year on year in February. 

The report added that international cargo capacity edged up by 1.1 percent over the month.

“February saw a small contraction in air cargo demand, the first year-on-year decline since mid-2023. Much of this is explained by February 2024 being extraordinary — a leap year that was also boosted by Chinese New Year traffic, sea lane closures, and a boom in e-commerce,” said Walsh. 

He added: “Rising trade tensions are, of course, a concern for air cargo. With equity markets already showing their discomfort, we urge governments to focus on dialogue over tariffs.” 

Airlines operating in the APAC region drove cargo demand growth in February. 

According to IATA, cargo demand growth among APAC airlines increased by 5.1 percent year-on-year, while capacity rose by 2.7 percent during the same period. 

Air carriers in the Middle East region witnessed an 11.9 percent year-on-year decrease in air cargo demand in February, the slowest among the regions. 

The capacity of air carriers in the Middle East also decreased by 4 percent in February. 

“North American carriers saw a 0.4 percent year-on-year decrease in demand growth for air cargo in February. Capacity decreased by 3.5 percent year-on-year,” said IATA. 

The air cargo demand growth among European airlines dropped marginally by 0.1 percent in February compared to the same month in 2024, while capacity slightly edged down by 0.2 percent. 

Air carriers operating in the Latin American region witnessed a 6 percent year on year cargo demand growth in February, the strongest rise among all regions. The capacity of these airlines also rose by 7.6 percent during the same period. 

“African airlines saw a 5.7 percent year-on-year decrease in demand for air cargo in February. Capacity decreased by 0.6 percent year-on-year,” added IATA. 

Looking at trade indicators, IATA said that the industrial production index rose 3.2 percent year-on-year in February, the highest growth in two years, while world trade expanded by 5 percent. 

In February, the Purchasing Managers’ Index for global manufacturing output stood at 51.5, indicating growth. 

The PMI for new export orders rose slightly to 49.6 from the previous month, remaining just shy of the 50-mark, which is the growth threshold. 

The report added that jet fuel prices averaged $94.6 per barrel in February, representing a 2.1 percent decline compared to January.