Efficient energy design in homes reduces demand for renewables

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Updated 09 October 2022
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Efficient energy design in homes reduces demand for renewables

  • Retrofitting housing stock with energy efficiency measures could reduce peak demand by about 6 gigawatts

RIYADH: Incorporating energy efficiency techniques during the construction of a house is far more effective than investing in renewable energy sources for residences, said a leading researcher at King Abdullah Petroleum Studies and Research Center.

Speaking to Arab News, Mohammad Al-Dubyan, a researcher in KAPSARC’s climate and environment program, revealed that Saudi homes consumed more than 47 percent of the total domestic electricity consumption in 2020 i.e., around 138 terawatt-hours.

That is not all. Around 44 percent of Saudi homes were more than 20 years old and were not designed to conserve energy.

“We are working on enhancing the energy efficiency in real estate,” said Al-Dubyan.

According to industry reports, an energy-efficient design involves constructing buildings that can reduce energy loss, such as decreasing heat loss through the building envelope.

A University of Calgary paper recently expounded that such homes are less expensive, more comfortable and more environmentally friendly.

Al-Dubyan pointed out that retrofitting Saudi housing stock with only one effective energy efficiency measure could reduce peak demand by about 6 gigawatts. This reduction is more than double the effect of installing photovoltaic systems on all residential roof areas.

The potential to apply renewable energy to buildings is there. Still, energy efficiency is always the first step before going renewable.

“When we invest enough in enhancing our buildings’ energy efficiency, we reduce the need for renewables,” added Al-Dubyan.

Solar PV system is unviable at home

“Generally, it’s not financially attractive to install solar PV in homes despite the huge amounts of solar radiation that we get,” said Amro El-Shurafa, another KAPSARC researcher.

El-Shurafa pointed out that capital costs are considerably high, electricity prices are relatively low and payback periods are over 10 years in the residential sector.

“Nobody would spend around SR20,000 ($5,333) to SR40,000 to save around SR100 to SR200 a month. That’s not financially appealing,” said El-Shurafa.

Another challenge that affects solar energy adoption is the vast rented landscape in Saudi Arabia.

“If you rent a house, you’re not going to invest huge sums in a solar PV system and leave it when you move out,” he added.

Living the REEM

KAPSARC has been developing the Residential Energy Model, a framework that can assess energy consumption and the impact of energy efficiency programs.

“REEM is a bottom-up engineering-economic model to simulate energy consumption of the entire Saudi residential buildings by their types, vintages and locations,” explained Al-Dubyan.

The experiment assesses three main building types in the Kingdom in three weather conditions.

“The experiment goes from mild cold sometimes in the south to extremely hot in the middle of the country,” he said.

The goal of REEM is to indicate which building vintages consume more electricity than the other. It is also suitable for testing green initiatives before further regulatory procedures occur.

“What might be applicable in one country or region might not be successful in different regions,” he said.

Advent of circular carbon economy

According to Aljawhara Al-Quaid, a research associate at KAPSARC, CCE offers a holistic and inclusive path to the Kingdom, utilizing and benefiting from all technologies, energy sources and mitigation opportunities based on the availability of resources and the economic and national circumstances.

This process includes improvements to energy efficiency, electrification, the creation of nature-based carbon sinks such as planting more trees, investments in carbon capture utilization and storage, reducing the share of fossil fuels in the energy mix and more.

The Kingdom is also taking a leadership role in climate action on a regional level by introducing the Middle East Green Initiative.

It starts with the goal of planting 50 billion trees across the Middle East, equivalent to 5 percent of the global afforestation target.

“The Kingdom is currently aiming to increase the target of their renewable share of the electricity mix by up to 50 percent by 2030,” Al-Quaid said.

In line with the Saudi Green Initiative announced in October 2021, the Kingdom is applying the CCUS approach.

It encompasses technologies to remove carbon dioxide from the flue gas and atmosphere and further recycle the carbon emission for industrial use or safe and permanent storage options.

According to Al-Quaid, the CCE achieves meaningful emissions reductions by following the four R principles: Reduce, reuse, recycle and remove.


Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast

Updated 6 sec ago
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Oil Updates — crude falls on prospect of more OPEC+ supply, easing risks in Mideast

SINGAPORE: Oil prices fell on Monday as an easing of geopolitical risks in the Middle East and the prospect of another OPEC+ output hike in August improved supply expectations amid persistent uncertainty over the outlook for global demand.

Brent crude futures fell 12 cents, or 0.18 percent, to $67.65 a barrel by 10:18 a.m. Saudi time, ahead of the August contract’s expiry later on Monday. The more active September contract was at $66.56, down 24 cents.

US West Texas Intermediate crude dropped 36 cents, or 0.55 percent, to $65.16 a barrel.

Last week, both benchmarks posted their biggest weekly decline since March 2023, but they are set to finish higher in June with a second consecutive monthly gain of more than 5 percent.

A 12-day war that started with Israel targeting Iran’s nuclear facilities on June 13 pushed up Brent prices. They surged above $80 a barrel after the US bombed Iran’s nuclear facilities and then slumped to $67 after President Donald Trump announced an Iran-Israel ceasefire.

The market has stripped out most of the geopolitical risk premium built into the price following the Iran-Israel ceasefire, IG markets analyst Tony Sycamore said in a note.

Further weighing on the market, four delegates from OPEC+, which includes allies of the Organization of the Petroleum Exporting Countries, said the group was set to boost production by 411,000 barrels per day in August, following similar-sized output increases for May, June and July.

OPEC+ is set to meet on July 6 and this would be the fifth monthly increase since the group started unwinding production cuts in April.

However, bearish pressure from concerns over slower global oil demand, particularly from China, is likely to persist.

Uncertainty around global growth continues to cap prices, said Priyanka Sachdeva, senior market analyst at Phillip Nova.

China’s factory activity contracted for a third straight month in June, as weak domestic demand and faltering exports weighed on manufacturers amid US trade uncertainty.

In the US, the number of operating oil rigs, an indicator of future output, fell by six to 432 last week, the lowest level since October 2021, Baker Hughes said.


Closing Bell: Saudi main index rises to close at 11,202

Updated 29 June 2025
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Closing Bell: Saudi main index rises to close at 11,202

  • Parallel market Nomu gained or 0.72% to close at 27,248.13
  • MSCI Tadawul Index rose 1.07% to close at 1,434.07

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 134.37 points, or 1.21 percent, to close at 11,202.64.

The total trading turnover of the benchmark index was SR5.08 billion ($1.35 billion), as 218 of the stocks advanced and 31 retreated. 

The Kingdom’s parallel market Nomu gained 195.03 points, or 0.72 percent, to close at 27,248.13. This comes as 57 of the listed stocks advanced while 30 retreated. 

The MSCI Tadawul Index gained 15.19 points, or 1.07 percent, to close at 1,434.07. 

The best-performing stock of the day was Saudi Industrial Development Co., whose share price increased 10 percent to SR30.14. 

Other top performers included Naseej International Trading Co., whose share price rose 9.99 percent to SR 96.00, as well as Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, whose share price rose 9.97 percent to SR 22.39. According to Tadawul, Cenomi Retail’s shares also jumped by 100 percent in two months despite a sell recommendation from research houses.

Specialized Medical Co. recorded the most significant drop, falling 1.88 percent to SR22.92.

Americana Restaurants International PLC — Foreign Co. saw its stock prices fall 1.26 percent to SR2.35.

Nahdi Medical Co. also saw its stock prices decline 1.24 percent to SR127.20.

On the announcements front, Etihad Atheeb Telecommunication Co., also known as GO Telecom, has announced its annual consolidated financial results for the period ending March 31.

According to a Tadawul statement, the firm recorded a net profit of SR223 million during the year, reflecting a 14.36 percent increase compared to the same period a year earlier. The climb is attributed to an increase in revenue of SR446 million, offset by a rise in the cost of revenue of SR320 million, an upsurge in expected credit losses on trade receivables of SR24.6 million, and a growth in general and administrative expenses of SR24 million. 

There was also a decrease in financing costs by SR690,000 due to the recognition of commission income on Islamic deposits during the current year, amounting to SR20 million.

GO Telecom has decided to distribute SR10.1 million worth of cash dividends to the company’s shareholders for the fiscal year ending on March 31. According to a Tadawul statement, the number of shares eligible for dividends stands at 33.99 million, with a dividend per share of 30 halals and a dividend percentage to the share par value of 3 percent.

GO Telecom ended the session at SR105.00, up 2.49 percent. 

The Saudi Exchange has approved Saudi Azm for Communication and Information Technology Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR30 million and 60 million shares. 

The company’s shares will remain listed on Nomu – Parallel market until the deadline for publishing the transfer document. 

The issuer is required to publish the transfer document within three trading days after the Saudi Exchange announces its approval of the transfer request. The transfer document will be accessible to the public for 10 trading sessions through the websites of the issuer, Tadawul, and the financial adviser.

Tadawul also approved Obeikan Glass Co.’s request to transfer from Nomu — Parallel market to the main market, with a capital of SR320 million and 32 million shares.


Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

Updated 29 June 2025
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Saudi IPO proceeds hit $2.8bn in H1 as flynas leads market activity

  • Leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion
  • Umm Al-Qura for Development and Construction Co. raised $523.1 million

RIYADH: Saudi Arabia’s equity capital market maintained strong momentum in the first half of 2025, with six companies raising a combined $2.8 billion through initial public offerings on the main Tadawul exchange.  

According to an analysis by Forbes Middle East, leading the activity was the public offering of low-cost carrier flynas, which raised SR4.1 billion ($1.1 billion) in what marked one of the region’s largest aviation listings.  

The rise in IPO listings comes amid broader financial reforms in Saudi Arabia, as the Capital Market Authority introduces new frameworks — including regulations for special purpose acquisition companies — aimed at expanding funding avenues and enhancing private-sector participation. 

In its analysis, Forbes stated: “The momentum underscores investors’ growing appetite for sectoral diversification across aviation, healthcare, finance, and industry, while affirming Riyadh’s long-term bet on privatization and public market expansion under Vision 2030.” 

The flynas IPO drew overwhelming demand, with institutional subscriptions oversubscribed nearly 100 times, and the retail tranche covered 349.7 percent. The offering comprised 51.3 million ordinary shares, representing 30 percent of the company’s post-offering capital. 

“In 2024, flynas generated $2 billion (SR7.6 billion) in revenue, marking an 18.8 percent increase from the previous year, while net profit rose 8 percent to $115.6 million (SR433.5 million),” the analysis added. 

A view of the sign showing the logo of Saudi Arabia’s Stock Exchange Market (Tadawul) bourse in the capital Riyadh. File/AFP

As of June 14, the airline was operating 139 routes, connecting over 70 domestic and international destinations across 30 countries, with a weekly schedule exceeding 2,000 flights. 

Diverse listings 

Forbes also highlighted several other notable IPOs that reflect diversification across key sectors. 

Umm Al-Qura for Development and Construction Co. raised $523.1 million by selling 130.7 million shares at $4 each — representing 9.09 percent of its total capital. 

The company leads the Masar destination project, a major development transforming the western gateway of the Holy City, featuring hotels, residential units, retail spaces, and infrastructure. 

Aligned with Saudi Arabia’s drive to boost religious tourism, the IPO proceeds will support ongoing construction, improve transport connectivity, and attract global hospitality brands in line with national tourism goals. 

Among the companies to list this year was Riyadh-headquartered SMC Healthcare, which raised $500 million through its Tadawul debut, reflecting growing investor appetite for healthcare stocks as the Kingdom expands private sector involvement in the industry. The IPO comprised 75 million shares priced at $6.70 each, representing 30 percent of the company’s total share capital. 

Derayah Financial, an asset management and brokerage firm, is another company that secured $399.6 million through its offering. Shares were priced at $8 each and attracted strong interest from both retail and institutional investors, supported by the company’s digital-first model and established brand presence. 

In February, Derayah offered 20 percent of its share capital — 49.9 million shares — through a listing on the Main Market, providing investors access to its expanding digital investment platform. 

The stock was listed in March. By the end of the first quarter, Derayah reported 555,000 client accounts, while assets under management rose 5 percent year-to-date to $4.8 billion. 

This year also saw United Carton Industries Co. raise $160 million by offering 12 million shares at $13.30 each, representing 30 percent of its capital. The company is expanding capacity to meet rising demand for corrugated packaging, a key input in Saudi Arabia’s growing industrial sector. 

Arabian Co. for Agricultural and Industrial Investment, also known as Entaj, raised $120 million through a February IPO. The poultry producer floated 9 million shares, leveraging strong demand amid the Kingdom’s drive to enhance local food security. Entaj nearly doubled its daily processing capacity to 600,000 birds by the end of 2024. 

Regional dominance 

The rise in listings reinforces Tadawul’s position as the Arab world’s most valuable stock exchange. According to the Arab Federation of Capital Markets, the Saudi exchange accounted for 62 percent of total market capitalization across regional bourses in 2024, far ahead of the Abu Dhabi Securities Exchange, which held 18.6 percent. 

Tadawul's benchmark TASI index ended December 2024 at 12,037 points, up 3.39 percent month-on-month. Average daily trading value reached SR5.2 billion, while total monthly trading volume stood at SR119.6 billion, according to the Arab Monetary Fund. 

Analysts expect IPO momentum to continue in the second half of 2025, especially in energy-adjacent sectors, fintech, and transportation, as the Capital Market Authority accelerates approvals and Vision 2030-linked corporates seek broader capital access. 

The Saudi stock market was among the region’s top performers in December, buoyed by improved liquidity and investor confidence. TASI closed the month at 12,037 points, with daily trading values averaging SR5.2 billion and total trading reaching SR119.6 billion, the Arab Monetary Fund reported.


Aramco cuts July propane, butane prices amid market shifts

Updated 29 June 2025
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Aramco cuts July propane, butane prices amid market shifts

  • Oil giant set propane at $575 per tonne and butane at $545 per tonne

RIYADH: Saudi Aramco has lowered its official selling prices for propane and butane for July 2025, reflecting changing global market dynamics.

In a statement released on Sunday, the oil giant set propane at $575 per tonne and butane at $545 per tonne—both down $25 from the previous month. The adjustment continues a downward trend driven by evolving supply-demand conditions.

Propane and butane, classified as liquefied petroleum gases, are essential fuels for heating, transport, and petrochemical production. Aramco’s monthly pricing serves as a key benchmark for LPG shipments from the Middle East to the Asia Pacific.

The global LPG market is undergoing a reshuffle as China shifts away from US imports due to steep tariffs, increasingly turning to Middle Eastern suppliers. In turn, American cargoes are being rerouted to Europe and other parts of Asia.

This realignment is putting pressure on global LPG prices and weakening demand for US shale byproducts, impacting both American shale producers and Chinese petrochemical firms. Meanwhile, the trend is spurring greater interest in alternative feedstocks like naphtha.

Middle Eastern exporters are benefiting from the shift, stepping in to fill the gap left by falling US exports to China. Buyers in Asia, including Japan and India, are also taking advantage of the softer prices to strike more favorable supply deals.


Egypt to offer Hurghada airport to private sector by end of 2025

Updated 29 June 2025
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Egypt to offer Hurghada airport to private sector by end of 2025

  • President El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships
  • Plan supports Egypt Vision 2030

RIYADH: Egypt plans to offer Hurghada International Airport to the private sector by the end of 2025 as part of a broader strategy to modernize its aviation sector and attract foreign investment, President Abdel Fattah El-Sisi said.  

The announcement came during a meeting in Al-Alamein City with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah, where El-Sisi reviewed the national roadmap for enhancing civil aviation infrastructure and operations. 

The move forms part of a national strategy designed in partnership with the International Finance Corp., which is advising on a new public-private participation model for the country’s airports. The framework is expected to be finalized by summer 2025 and will target 11 major airports while maintaining public ownership. 

In an official post, Ambassador Mohamed El-Shenawy, spokesman for the presidency, said the meeting reviewed the comprehensive strategic vision for the advancement of the entire civil aviation sector, including air navigation, aircraft fleet development, airport upgrades, and enhancement of human resource capabilities. 

“These efforts are part of the state’s broader plan to improve the efficiency of the aviation sector, increase its capacity, and enhance the quality of services provided to travelers, in support of the national goal to raise the number of tourists to 30 million,” the post added. 

Egyptian President Abdel Fattah El-Sisi meets with Minister of Civil Aviation Sameh El-Hefny and EgyptAir In-Flight Services Chairperson Soheir Abdullah. Facebook/Spokesman for the Egyptian Presidency

El-Sisi issued directives to proceed with developing Egyptian airports through international partnerships centered on efficiency and sustainability, while ensuring an attractive investment environment that guarantees economic feasibility and long-term growth. 

The plan supports Egypt Vision 2030, the country’s national development blueprint, which includes transforming airports into regional aviation hubs equipped with the latest global systems.  

El-Sisi also reviewed the “New Republic Air Gateway” project at Terminal 4 of Cairo International Airport. Once completed, the new terminal will increase the airport’s capacity by at least 30 million passengers, pushing total throughput beyond 60 million annually.

The project is designed in line with international standards for safety, security, and environmental sustainability. 

The meeting also touched on Egypt’s achievements in air navigation, especially during recent regional airspace closures that increased daily traffic to over 1,600 flights. 

According to the presidential spokesman, organizations including Eurocontrol, the International Civil Aviation Organization, and the International Air Transport Association praised Egypt’s air traffic controllers for maintaining operational stability and service continuity. 

Additionally, the meeting highlighted EgyptAir’s recent successes. The national carrier was named “Best Airline Staff in Africa” for 2025 by Skytrax at the Paris Air Show. 

Other accolades included Best Economy Class Meals, Most Improved Airline in Africa for a second consecutive year, and Best Cabin Crew in Africa. 

The airline advanced 20 positions in the global ranking to 68th place out of more than 325 carriers. 

The minister said EgyptAir plans to expand its fleet to 97 aircraft by 2028-29. Efforts are also underway to upgrade in-flight services, infrastructure, and ground operations, as well as enhance lounge amenities and punctuality. 

These initiatives are aimed at strengthening the airline’s global competitiveness and overall passenger experience.