How Saudi Arabia is translating its climate-change ambitions into action

The Green Riyadh project is the largest urban reforestation scheme in the world. (AN archives)
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Updated 13 November 2022
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How Saudi Arabia is translating its climate-change ambitions into action

  • Crown Prince Mohammed bin Salman launched the Saudi Green and Middle East Green Initiatives in 2021
  • Projects include establishing more parks and planting millions of trees to help cool urban environments 

JEDDAH: Flying into the Saudi capital Riyadh, visitors cannot help but notice the patchwork of green spaces that have popped up across the city. Less than a decade ago, the scene from above would have more closely resembled the fictional Star Wars planet of Tatooine.

Although its territory is largely covered by desert, Saudi Arabia has worked hard in recent years to protect and restore its biodiversity, and has opted for a more sustainable future by turning whole swathes of its landscape into havens of green.

Last year, Crown Prince Mohammed bin Salman launched the twin Saudi Green Initiative and the Middle East Green Initiative, which feature the largest afforestation projects in the world, to capture carbon from the air, improve soil quality, and enhance quality of life.

The second edition of the Saudi Green Initiative Forum is taking place in the Egyptian resort town of Sharm El-Sheikh from Nov. 11 to 12 to coincide with the UN climate summit, COP27.

“As a leading global oil producer, we are fully aware of our responsibility in advancing the fight against the climate crisis, and that just as we played a leading role in stabilizing energy markets during the oil and gas era, we will work to lead the coming green era,” the crown prince said during the initiatives’ launch.

A warming climate is already taking its toll on the Kingdom and the wider Middle East, with less rainfall to water crops and refill groundwater aquifers, creeping desertification and soil degradation, and dust storms growing in scale and frequency.

The two initiatives are designed to help the Kingdom and wider region adapt to and mitigate for the effects of climate variation and to adopt technologies and practices that will reduce greenhouse gas emissions and other environmental pollutants.




Circular farms like these are spread across parts of the Kingdom. (AFP file photo)

By the end of 2021, around 60 community-based projects and private sector collaborations had already been launched under the initiatives to help improve public health, boost quality of life, and promote sustainable lifestyles. At the heart of it all is the city of Riyadh.

The growing metropolis is set to more than double its population in the coming decades thanks to an $800-billion project aimed at transforming it into an economic, social and cultural hub for the region. Such a transformation will of course come with environmental challenges. 

In 2019, the Green Riyadh Project, the world’s largest integrated urban reforestation project, announced an intention to plant 7.5 million trees across the capital, to increase green space from 1.7 to 28 square meters per capita, and to increase total green space to 9 percent.

The project aims to reduce ambient temperatures by an average of 8-15 degrees Celsius in afforested locations across the city, to improve air quality by 3-6 percent, and to improve the overall aesthetic of the urban center.

Given Riyadh’s location and high density, it will need time, hard work, and investment to become a sustainable city that fulfills the goals set out in the Kingdom’s Vision 2030 Quality of Life Program, Abdullah Aldakheelallah, an architect and urban researcher, told Arab News.




Community engagement is a key goal of Saudi green efforts. (AN archives)

“Urban areas must not only incorporate green spaces. They must also provide basic amenities, entertainment spaces through eco-friendly practices, afforestation on roads and in neighborhoods, the construction of sidewalks and pedestrian pathways,” said Aldakheelallah.

“Projects in the Kingdom should adapt and adjust themselves to the strategic keys of the Quality of Life Program in their unique way to add to the improvement of urban cities as a whole.

“Green pockets of land will help nourish a city, it can promote outdoor recreational activities, improve the health of citizens and help reduce the urban heat island (UHI) phenomenon, where surfaces absorb heat and retain the heat for longer hours.”

SGI objectives: 

Net-zero emissions by 2060. 

*Boost use of renewables to 50% by 2030.  Contribute to cutting global methane emissions by 30% by 2030. 

Plant 10 billion trees and rehabilitate 40 million hectares of land. 

Raise protected areas to more than 30% of total land. 

Another benefit of the urban afforestation project is that it will curb the effects of “unmanaged surfaces,” such as uninhabited land, roundabouts, and other empty spaces that tend to retain heat longer, said Aldakheelallah.

“Some 20 percent of Riyadh is made up of unmanaged surfaces. By shading such areas, their goal is to decrease the exposure of solar radiation to unmanaged surfaces, and decrease temperatures in the city during daylight. Studies predict that by doing so, you can decrease temperatures by 4-5 degrees during the day,” he added.

Beyond increasing tree cover, Aldakheelallah says the design and retrofitting of buildings can also have a significant impact on local temperatures.

“Roofs play a crucial role in the energy balance of buildings and the surrounding environment,” he said. “The total height-to-floor area ratio and width of the roof are key determining factors for reducing direct radiation exposure.

“Unfortunately, modern ways of building homes have given way to reducing the size and width of roofs, which has had adverse impacts.”

To create and sustain its new green spaces, Riyadh must guarantee plentiful and sustainably sourced freshwater — a limited resource in a country that lacks its own rivers and receives precious little rainfall.

Deep groundwater aquifers and desalination plants are the Kingdom’s primary water resources. In major Saudi cities, desalinated water consumption is extremely high, especially in Riyadh, where its share stood at 63-64 percent in 2020.




Local planting initiatives have been launched around the Kingdom, including in the Eastern Province. (AN archives)

Much of the capital’s drinking water came from desalination plants in Makkah, Jeddah and Taif — a practice which, until more plants are powered by renewable sources of energy, continues to contribute to the Kingdom’s carbon emissions.

Dr. Mark Tester, associate director at the King Abdullah University of Science and Technology Center for Desert Agriculture, says Riyadh needs to better integrate its wastewater management if it wants to irrigate its green spaces sustainably.

“Wastewater is a massive resource, especially in a country which has so little water,” Tester told Arab News. “You need to be able to, for example, separate greywater from blackwater and then use the greywater directly.

“This saves enormous amounts of money and greatly reduces the CO2 emissions from pumping and treating the wastewater. You can use the greywater locally and with minimal treatment and this gives you an opportunity to green the environment.”

Blackwater, also referred to as sewage or brown water, is the wastewater from bathrooms, which can carry disease and bacteria, both of which can be harmful.

Greywater, by contrast, is the wastewater that comes from sinks, washing machines, bathtubs and showers. It contains lower levels of contamination, making it easier to treat and process.

Recycled greywater is commonly used in irrigation and constructed wetlands. In fact, greywater that contains food particles can even nourish plants. Using treated greywater in Riyadh could lead to improved planning, regulations, and building codes, could irrigate tens of millions of trees, and significantly improve health and well-being.

Indeed, at the very heart of the greening strategy is the happiness and well-being of Saudi residents and foreign visitors, allowing them to experience the psychological benefits of the great outdoors in a safe and manageable climate.

“Green spaces should be prioritized where they can be safely and conveniently accessed and enjoyed by everyone, regardless of age, gender, or physical ability, for example, in a neighborhood park as opposed to a street median or traffic roundabout,” Huda Shaka, a sustainable cities adviser, told Arab News.

“Such spaces can improve the physical and mental health of the urban population as well as provide opportunities for improving biodiversity, air quality, and access to food.”

 


Radisson doubles down on Saudi Arabia with aggressive hotel expansion

Updated 13 May 2025
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Radisson doubles down on Saudi Arabia with aggressive hotel expansion

RIYADH: Saudi Arabia now accounts for half of Radisson Hotel Group’s Middle East portfolio, as the Kingdom cements its role as a global priority for the hospitality giant. 

The company currently has 100 hotels either open or under development across the region, with 50 of them located in Saudi Arabia, revealed Radisson’s top executive in an interview with Arab News on the sidelines of the Future Hospitality Summit in Riyadh. 

The expansion aligns with Saudi Arabia’s fast-growing hotel sector, as the Kingdom plans to add more than 362,000 new hotel rooms by 2030, backed by a $110 billion investment. 

Elie Younes, executive vice president and global chief development officer at Radisson, said: “Saudi Arabia sits in one of the top five countries for us globally.”  

He said that of the 50 hotels in Saudi Arabia, 30 are open and 20 are under construction. 

Providing details and a timeframe for their planned 20 hotels in Saudi Arabia, Younes said the projects will be rolled out over the next three to four years, with an additional 30 hotels expected to open in the following three to four years. 

The new wave of properties will translate into approximately 4,000 to 5,000 rooms. “If you multiply 20 by 200 to 250, you will get 4,000 to 5,000 rooms currently planned under construction in Saudi Arabia, which will eventually also make an economic impact because that will create job opportunities for approximately 5,000 people,” said Younes. 

Radisson is also ramping up its presence in the capital. The company recently opened Radisson Blu Minhal in Riyadh and plans to launch its third Radisson Collection hotel in the city soon.  

The Mansard Hotel, part of its urban portfolio, was noted as the brand’s first resort in Riyadh. Service apartments under the Radisson Collection brand are expected to open in the next four months. 

The group sees strong potential across multiple segments. “There is room for another 10 to 15 Radisson Blu hotels. As for Radisson Collection, which is our entry-level luxury brand, there will be fewer opportunities to grow it because of its luxury nature — maybe four or five more hotels. We already have three in Riyadh alone,” he said. 

Younes highlighted the scalability of the core four-star Radisson brand, particularly in smaller Saudi cities.  

“We recently opened three of them here in Riyadh alone, and I think we could open at least or sign another 20 or 30 of them in the Kingdom across the next four to five years, focusing on places like Riyadh, Jeddah, Makkah, and Madinah… to some extent, and specifically, after that, in some of the secondary regional cities, where we also see opportunities for business development,” he explained. 

Commenting on global tariffs, Younes said it is difficult to assess the impact of what he described as a “semi-political, semi-non-political” decision. 

 “We don’t see that to have a direct impact in Saudi Arabia because — you have to remember that — over 50 percent of the travel industry in Saudi Arabia is domesticated in terms of traveling, and over 90 percent of investments in Saudi Arabia comes from Saudi Arabia,” he added. 

Younes also spoke about broader trends in the hospitality industry, including growing traveler volumes and a heightened focus on sustainability. “I think we are very lucky and should be grateful to work in this industry because it is one of those ever-growing industries,” he said. 

He noted shifts in travel behavior as business and leisure increasingly merge: “People going for a long business trip but integrating into that trip a little bit of fun, bringing the wife, bringing the kids, spending the extra day. Wanting to have fun.” 

The executive noted that operational challenges are mounting, driven by rising costs and technological disruption. “The cost of labor going up. Inflation going up. The influence of artificial intelligence. All of these elements will push us and will result in us becoming more efficient,” he said. 

While artificial intelligence will likely shape back-end operations, Younes emphasized the enduring value of human service: “The human touch will never go away. We all know that.” 

Looking ahead, he sees the convergence of hospitality and residential real estate as a key evolution in the sector.

“I see more integration and fusion between the conventional hospitality and residential real estate as we move forward to try and achieve all of these efficiencies and economies,” he concluded. 


Closing Bell: Saudi main index closes in green at 11,532 

Updated 13 May 2025
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Closing Bell: Saudi main index closes in green at 11,532 

RIYADH: Saudi Arabia’s Tadawul All Share Index extended its upward momentum for the second consecutive day, gaining 43.62 points, or 0.38 percent, to close at 11,532.27.

The total trading turnover of the benchmark index reached SR5.37 billion ($1.43 billion), with 120 listed stocks advancing and 121 declining.

The Kingdom’s parallel market Nomu also closed higher, rising 585.86 points to end at 27,928.99.

Meanwhile, the MSCI Tadawul Index edged up 0.41 percent to close at 1,474.55.

The best-performing stock on the main market was Saudi Arabia Refineries Co., whose share price jumped 9.85 percent to SR65.80.

Zamil Industrial Investment Co. also saw gains, with its stock rising 7.73 percent to SR47.40.

ARTEX Industrial Investment Co. recorded a 4.35 percent increase, closing at SR13.44.

On the other hand, Gulf General Cooperative Insurance Co. saw its share price decline by 6.45 percent to SR7.11, making it one of the worst performers of the day.

On the announcements front, Al-Babtain Power and Telecommunication Co. reported a net profit of SR88.2 million for the first quarter of 2025, a 6.77 percent increase compared to the same period last year.

The company attributed the rise to improved productivity, cost reductions, and stronger profit margins. Its share price rose 1.45 percent to SR49.

Tabuk Cement Co. posted a 28.35 percent year-on-year decline in net profit for the first quarter, reaching SR13.04 million.

In a statement to Tadawul, the company cited a decrease in sales and other income as the primary reasons for the drop. Its stock fell 0.50 percent to SR11.90.

Riyadh Cement Co. reported a net profit of SR75.68 million for the first quarter, up 7.95 percent from the same period a year earlier, driven by increased sales volume and higher average selling prices. Its share price rose 0.45 percent to SR33.35.

Arabian Drilling saw its net profit plunge 48.63 percent year on year to SR75 million in the first quarter. Its stock declined 1.78 percent to SR82.90.

Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, reported a net profit of SR1.8 million for the first quarter, reversing a net loss of SR151.7 million in the same period last year.

The company credited favorable seasonal dynamics and a continued focus on operational efficiency for the turnaround. Cenomi Retail’s share price rose 2.71 percent to SR15.94.

Al-Jouf Agricultural Development Co. reported a net profit of SR34.65 million in the first quarter, up 5.26 percent year on year. Its share price increased 1.76 percent to SR49.15.


Aramco to sign MoUs with NextDecade, Sempra for 6.2m tonnes of LNG

Updated 13 May 2025
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Aramco to sign MoUs with NextDecade, Sempra for 6.2m tonnes of LNG

RIYADH: Saudi Aramco will sign on Tuesday memoranda of understanding with US liquefied natural gas producer NextDecade and utility firm Sempra , Aramco’s chief executive said, as the oil giant expands in the LNG market.

“The US today, in terms of gas, is almost 100 billion (dollars) in sales ... and it is continuously increasing,” Aramco’s CEO Amin Nasser told the US-Saudi Investment Forum in Riyadh.

“The US is really a good place to put our investment,” he added, noting that under the MoUs Sempra and NextDecade would supply around 6.2 million tonnes of LNG to Aramco.

The US is already the world’s largest exporter of LNG and producers have plans in place that would double capacity in coming years.

NextDecade last month signed a deal with a subsidiary of Aramco, which is seeking to become a big player in the LNG market, under which the US firm will supply the superchilled gas from its Rio Grande facility for 20 years.

“We do have other investments. So we’re looking at, by 2030, almost seven and a half million tons of LNG,” Nasser noted, speaking of expansion plans.

Nasser also said that one of the investments that Aramco plans to sign on Tuesday involved an expansion of the Motiva Port Arthur’s refinery in the US, noting the oil giant would invest $3.4 billion in the refinery.


SMEs account for 30% of listed companies in Saudi Arabia: CMA chief 

Updated 13 May 2025
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SMEs account for 30% of listed companies in Saudi Arabia: CMA chief 

JEDDAH: Small and medium enterprises now constitute 30 percent of listed companies in Saudi Arabia, following significant efforts by the Capital Market Authority to streamline the listing process and enhance the parallel market, according to CMA Chairman Mohammed El-Kuwaiz.

Speaking during “Finance Week” at the SME Support Council — an event organized by the Small and Medium Enterprises General Authority, also known as Monsha’at — El-Kuwaiz underscored the regulator’s commitment to broadening financing options and encouraging more SMEs to enter the capital market.

According to the Saudi Press Agency, El-Kuwaiz highlighted the 2017 launch of the parallel market, Nomu, as a major milestone in expanding access for smaller firms. Since then, 14 companies have successfully moved from Nomu to the main market, underscoring the strength of the investment ecosystem.

The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan.

El-Kuwaiz noted that the Nomu index has grown tenfold since its inception, with market capitalization soaring 26 times to nearly SR60 billion ($16 billion) by the end of 2024. Liquidity has also surged, with trading values reaching approximately SR14 billion this year — an eightfold increase.

To further ease capital market access, the CMA has introduced a suite of new tools, including direct listings and regulatory simplifications, in collaboration with strategic partners. As a result, companies now have access to nine distinct financing options, most of which were developed in recent years.

The CMA chief also pointed to the rapid growth of the fintech sector within capital markets, with revenues more than doubling — up 105 percent compared to 2023.

He emphasized the growing importance of credit ratings and evaluations in securing financing, particularly through debt instruments, which are increasingly vital for fostering sustainable growth in the financial sector.


Jordan’s industrial index rises 2.73% in Q1 2025: official data

Updated 13 May 2025
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Jordan’s industrial index rises 2.73% in Q1 2025: official data

RIYADH: Jordan’s industrial production index climbed 2.73 percent year on year in the first quarter of 2025, reaching 87.62 points, driven by robust growth in manufacturing and electricity output, according to data released by the Department of Statistics.

Manufacturing production rose 3.2 percent during the first three months of the year, while electricity output increased 4.97 percent, the Jordan News Agency, Petra, reported. However, the extractive industries sector declined by 8.03 percent over the same period.

The rise in industrial activity comes as Jordan’s inflation rate accelerated by 2.21 percent annually during the first two months of 2025, fueled by rising prices in several key commodity groups.

The upward trend in the index was also reflected in January’s figures, which showed a 2.76 percent annual increase to 88 points.

In March alone, the industrial index grew by 1.73 percent year on year, reaching 87.62 points compared to 86.13 points in March 2024. Petra noted this growth was supported by a 3.38 percent increase in manufacturing and a 4.02 percent rise in electricity production, despite a sharp 23.89 percent decline in extractive industries.

Month on month, the index rose 0.44 percent from February to March, increasing from 87.24 to 87.62 points. During this period, the extractive sector rebounded with a 9.96 percent increase, while manufacturing inched up 0.41 percent. The electricity sector, however, contracted by 7.18 percent.

Meanwhile, Fitch Ratings earlier this month affirmed Jordan’s long-term foreign currency issuer default rating at “BB-” with a stable outlook, citing macroeconomic stability and ongoing fiscal and economic reforms.

The US-based agency highlighted Jordan’s resilient financing environment, supported by a well-capitalized banking sector, a robust public pension fund, and sustained international assistance.

Despite the stable outlook, Jordan’s credit rating remains lower than several of its regional peers. In February, Fitch reaffirmed Saudi Arabia’s rating at “A+” with a stable outlook and the UAE’s at “AA-.”

A “BB” rating indicates a higher vulnerability to default risk in the event of unfavorable economic or business conditions, although some financial flexibility remains.