China doubles down on coal as energy crunch bites

China has stepped up spending on coal in the face of extreme weather and rising global fuel prices. (Reuters/File)
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Updated 18 September 2022
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China doubles down on coal as energy crunch bites

BEIJING: China has stepped up spending on coal in the face of extreme weather, a domestic energy crunch and rising global fuel prices — raising concerns Beijing’s policies may hinder the fight against climate change.

The country is the world’s biggest emitter of the greenhouse gases driving global warming, and President Xi Jinping has vowed to reduce coal use from 2026 as part of a broad set of climate promises.

Beijing has committed to peaking its carbon emissions by 2030 and achieving carbon neutrality by 2060.

Overall carbon emissions in China have fallen for four consecutive quarters on the back of an economic slowdown, research reported by climate monitor Carbon Brief showed in early September.

But at the same time, slowing growth has led authorities to rely on smokestack industries in an effort to boost the economy.

The push to shore up coal power — which still makes up most of China’s energy supply — has alarmed analysts who warn that it will make an eventual transition to a renewables-dominated energy mix more difficult.

Spooked by an energy shortage last autumn, Chinese authorities in spring ordered coal producers to add 300 million tons of mining capacity this year — the equivalent of an extra month of coal production for the country.

In just the first quarter of 2022, regulators endorsed the equivalent of half the entire coal-fired power plant capacity approved in 2021, according to Greenpeace.

Authorities have also burned and mined more coal in recent weeks in order to meet increased air conditioning demand and make up for shrunken hydropower dams during China’s hottest-ever summer. Premier Li Keqiang in June called for “releasing advanced coal capacity, as much as possible, and implementing long-term coal supply.”

The independent Climate Action Tracker warns that even the “most binding” climate targets laid out by Beijing would be in line with global warming of between 3-4 degrees Celsius before the end of the century — well above the Paris Agreement’s goal to limit global warming to 1.5 C.

To meet that goal, it said, China would “need to reduce emissions as early as possible and well before 2030” — as well as “decrease coal and other fossil fuel consumption at a much faster rate than currently planned.”

China has made real progress in building up renewable energy capacity.

The current operating solar capacity in the country accounts for nearly half the global total, according to San Francisco-based nongovernmental organization Global Energy Monitor.

But unlike wind or sunlight, stockpiles of coal and gas can be held for long periods of time and deployed as needed, giving local authorities a sense of security.


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

Updated 4 sec ago
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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 and Sempra, CEO says

Updated 13 min 2 sec ago
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Aramco to sign MoUs with NextDecade and Sempra, CEO says

RIYADH: Saudi oil giant Aramco will sign on Tuesday memoranda of understanding with US liquefied natural gas producer NextDecade and utility firm Sempra , Aramco’s CEO Amin Nasser told the US-Saudi Investment Forum.

- This is a breaking news story, and updates will follow


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.


Egypt’s exports surge by 24% in February amid trade shifts

Updated 13 May 2025
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Egypt’s exports surge by 24% in February amid trade shifts

RIYADH: Egypt’s exports rose by 24.1 percent year on year in February to reach $4.43 billion, driven by increased shipments of key commodities.

The surge comes amid other economic indicators improving, highlighting the country’s developing financial landscape.

The latest monthly trade report released by the Central Agency for Public Mobilization and Statistics, known as CAPMAS, explained that the growth in exports was driven by an increase in ready-made garments, which rose by 30.6 percent, and petroleum products, which increased by 12.2 percent. 

Moreover, processed foods grew by 9.3 percent, and primary plastic products saw a 3.4 percent rise.

Egypt’s export growth comes as the Middle East and North Africa region navigates shifting global trade dynamics in 2025, with the impact of recent tariff measures and geopolitical tensions reshaping commercial flows worldwide. 

Egypt’s overall trade balance recorded a deficit of $2.33 billion, marking a 29.1 percent decline from February 2024, when the deficit stood at $3.28 billion. 

In the second month of this year, imports saw a 1.4 percent decline to $6.67 billion, down from $6.85 billion in the same period of 2024, due to the rise in prices of some imported goods.

Sector highlights

While some goods, including fresh fruits, fertilizers, potatoes, and iron products, saw declines, the surge in manufactured and petroleum goods bolstered the overall export figures.

Reduced purchases of wheat, raw iron and steel materials, pharmaceuticals, and primary plastics contributed to the import decline. Conversely, imports of petroleum products, natural gas, corn, and soybeans rose sharply. 

Adding to the economic momentum, remittances from Egyptians working abroad surged to a record $32.6 billion in the 12 months through February, marking a 72.4 percent increase from the previous year.

The North African country’s net foreign assets also rose by $1.48 billion in February, reaching $10.18 billion, supported by increased foreign investment in treasury bills. 

In a meeting with the National Press Authority in January, Rania Al-Mashat, the minister of planning and economic development, said that the economy is projected to grow by 4 percent this fiscal year, bolstered by structural reforms and a record $46.1 billion in foreign direct investment in 2023/2024.

The government is pursuing $4.2 billion in macroeconomic support from global partners, with negotiations underway for an additional $4.10 billion in EU budget aid.