OPEC chief tells COP29 oil is a gift from God

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Updated 22 November 2024
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OPEC chief tells COP29 oil is a gift from God

OPEC chief tells COP29 oil is a gift from God

BAKU: OPEC Secretary-General Haitham Al-Ghais on Wednesday told the COP29 climate summit in Baku that crude oil and natural gas were a gift from God, and that global warming talks should focus on cutting emissions not picking energy sources.

His words echoed those of Azerbaijan President Ilham Aliyev, who used his opening address to the summit to hit back at Western critics of his country’s oil and gas industry, and also described those resources as a gift from God.

“They are indeed a gift of God,” Al-Ghais said in a speech at the conference.

“They impact how we produce and package and transport food and how we undertake medical research, manufacture, distribute, medical supplies. I could go on forever.”

He said that world governments, which agreed to limit planetary warming to 1.5 degrees Celsius above pre-industrial levels at the 2015 summit in Paris, could achieve their climate targets without shunning petroleum.

“The focus of the Paris Agreement is reducing emissions, not choosing energy sources,” he said.

OPEC has said that technologies like carbon capture can tackle the climate impact of burning fossil fuels.

Mohamed Hamel, secretary-general of the Gas Exporting Countries Forum, a grouping of gas exporter nations, also spoke to the conference on Wednesday in support of fossil fuels.

“As the world’s population grows, the economy expands, and human living conditions improve, the world will need more natural gas, not less,” he said.

He added that he hoped that a COP29 deal on international climate finance would allow support for natural gas projects to help countries transition away from dirtier fuels like coal.

“The outcome of COP 29 should facilitate financing for natural gas projects and scaling up cleaner technologies such as carbon capture, utilization and storage,” he said.

“This is crucial for ensuring just inclusive and orderly energy transitions that leave no one behind.”

Climate scientists say the world is now likely to cross the 1.5 degrees Celsius threshold — beyond which catastrophic climate impacts could occur — in the early 2030s, if not before.

The world is currently on track for as much as 3.1 Celsius of warming by the end of this century, according to the 2024 UN Emissions Gap report.


Saudi POS spending tops $3bn for 3rd week as education surges

Saudi POS spending tops $3bn for 3rd week as education surges
Updated 6 sec ago
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Saudi POS spending tops $3bn for 3rd week as education surges

Saudi POS spending tops $3bn for 3rd week as education surges

RIYADH: Saudi Arabia’s point-of-sale transactions remained above the $3.5 billion mark for the third consecutive week, driven by a 76.7 percent rise in education spending in the week ending Aug. 16. 

The education sector recorded SR444.86 million ($118.55 million) in transactions, alongside a 13.5 percent uptick in volumes to 183,000. It was one of only four sectors to register growth during the period. 

Total POS value stood at SR13.5 billion despite a 1.5 percent weekly drop, underscoring the resilience of consumer activity, according to data from the Saudi Central Bank, or SAMA. 

Within transportation, which declined 20 percent overall, subcategories showed pockets of growth. Spending on vehicles and spare parts rose 5.2 percent to SR569.65 million, while freight transport and postal services edged up 0.3 percent to SR48.81 million. 

Books and stationery also expanded, with spending up 3.5 percent to SR122.75 million and transactions rising 2 percent to 3.48 million. Gas stations recorded a marginal 0.2 percent increase to SR995.32 million. 

Conversely, automotive and equipment rentals posted the second-steepest drop, falling 10.9 percent to SR70.71 million, while vehicle maintenance and repairs slipped 2.7 percent to SR229.22 million. 

Food and beverages — the sector with the biggest share of total POS value — recorded a 2.5 percent decrease to SR1.88 billion, while the restaurants and cafes sector saw a 3.6 percent decrease, totaling SR1.69 billion and claiming the second-biggest share of this week’s POS. Spending on transportation ranked third despite a 0.1 percent decline to SR1.04 billion. 

The top three categories accounted for approximately 34.1 percent of the week’s total spending, amounting to SR4.61 billion. 

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.60 billion, a 0.2 percent increase from the previous week.   

Jeddah followed closely with a 4.9 percent dip to SR1.82 billion, while Dammam ranked third, down 1 percent to SR628.58 million. 


Oil Updates — crude edges up while investors await next steps in Ukraine peace talks

Oil Updates — crude edges up while investors await next steps in Ukraine peace talks
Updated 20 August 2025
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Oil Updates — crude edges up while investors await next steps in Ukraine peace talks

Oil Updates — crude edges up while investors await next steps in Ukraine peace talks

LONDON: Oil rose on Wednesday as the American Petroleum Institute reported a drop in US crude inventories and investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now.

Crude fell more than 1 percent on Tuesday on optimism that an agreement to end the war seemed closer. However, US President Donald Trump conceded that Russian President Vladimir Putin might not want to make a deal.

Brent crude futures rose 55 cents, or 0.8 percent, to $66.34 a barrel by 11:12 a.m. Saudi time. US West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, gained 65 cents, or 1 percent, to $63.

“(It) seems oil prices are thrown down one day, followed by a rebound the next day. The API report was on the positive side, so I assume some price support is coming from that,” said Giovanni Staunovo, an analyst at UBS.

Crude stocks fell by 2.42 million barrels, market sources said on Tuesday, citing American Petroleum Institute figures, ahead of official data at 5:30 p.m. Saudi time.

“Not so sure about the peace deal — will have to see if something moves forward over the coming days,” Staunovo added.

Trump said on Monday he was arranging a meeting between Putin and Ukrainian President Volodymyr Zelensky to be followed by a trilateral summit among the three presidents.

Russia has not confirmed it will take part in talks with Zelensky.

“The likelihood of a quick resolution to the conflict with Russia now seems unlikely,” said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday.

Oil also found support from flooding at a large US refinery.

BP said on Tuesday operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were affected by flooding after a severe thunderstorm, potentially weighing on crude demand at the facility — a key fuel producer for the Midwest market


Saudi Arabia raises $1.42bn in August sukuk issuance

Saudi Arabia raises $1.42bn in August sukuk issuance
Updated 19 August 2025
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Saudi Arabia raises $1.42bn in August sukuk issuance

Saudi Arabia raises $1.42bn in August sukuk issuance

RIYADH: Saudi Arabia’s National Debt Management Center raised SR5.31 billion ($1.42 billion) through its riyal-denominated sukuk issuance for August, marking a 5.8 percent increase from July.

The Kingdom had raised SR5.02 billion in July, while issuances stood at SR2.35 billion in June and SR4.08 billion in May.

Sukuk are Shariah-compliant instruments that grant investors partial ownership in underlying assets, offering a popular alternative to conventional bonds.

The August issuance was split into four tranches: SR755 million maturing in 2029, SR465 million in 2032, SR1.12 billion in 2036, and SR2.97 billion in 2039.

The NDMC, in a statement, said the latest offering reflects ongoing efforts to diversify funding sources and strengthen the domestic debt market.

A recent report by Kuwait Financial Centre, also known as Markaz, showed Saudi Arabia led the Gulf region’s primary debt market in the first half of 2025, raising $47.9 billion through 71 bond and sukuk deals — 52.1 percent of the GCC total.

Global ratings agency S&P has also highlighted the Kingdom’s role in driving Islamic finance, projecting global sukuk issuance to reach $190 billion to $200 billion in 2025, with as much as $80 billion in foreign currency offerings.


Closing Bell: Saudi main index holds firm at 10,882 

Closing Bell: Saudi main index holds firm at 10,882 
Updated 19 August 2025
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Closing Bell: Saudi main index holds firm at 10,882 

Closing Bell: Saudi main index holds firm at 10,882 

RIYADH: Saudi Arabia’s Tadawul All Share Index was steady on Tuesday, as it marginally declined by 0.04 percent, or 3.87 points, to close at 10,881.71. 

The total trading turnover of the benchmark index was SR4.02 billion ($1.07 billion), with 90 of the listed stocks advancing and 160 declining. 

Saudi Arabia’s parallel market Nomu gained 247.32 points to close at 26,769.86. 

The MSCI Tadawul Index slid marginally by 0.05 percent to 1,406.86. 

The best-performing stock on the benchmark index was Alistithmar AREIC Diversified REIT Fund, as its share price climbed by 8.62 percent to SR8.44. 

The share price of Tamkeen Human Resource Co. increased by 5.73 percent to SR57.20. 

Lumi Rental Co. also saw its stock price advance by 2.79 percent to SR60.70. 

Conversely, the share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, declined by 5.18 percent to SR22.71. 

On the announcements front, Basma Adeem Medical Co. said that its net profit for the first half of this year reached SR2.55 million, representing a rise of 7.25 percent compared to the same period in 2024. 

In a Tadawul statement, the healthcare firm attributed the rise in net profit to higher revenues driven by increased operational capacity, including the expansion of clinics and hiring additional doctors to meet increased demand. 

The share price of Basma Adeem Medical Co. increased by 1.78 percent to SR5.16. 

Service Equipment Co. announced that its net profit for the first half of 2025 declined by 40.06 percent year on year to SR4.56 million.  

According to a Tadawul statement, the drop in net profit was due to higher operating, selling and marketing expenses, as well as a rise in shipping and transportation costs. 

The share price of Service Equipment Co., listed on Saudi Arabia’s parallel market, dropped by 9.56 percent to SR59.60. 

Jabal Omar Development Co. announced that it signed a Murabaha financing agreement valued at SR2 billion with Al Rajhi Bank to refinance existing facilities. 

In a Tadawul statement, Jabal Omar Development Co. said that the financing facility has a tenure of five years, and it can be extended to an additional three years. 

The firm’s share price declined by 0.96 percent to SR18.63. 

Retail investors started subscribing to 960,000 shares of Marketing Home Group for Trading Co. as a part of its initial public offering, on the Kingdom’s main market at SR85 each based on the book building process. 

In a statement, Tadawul said that the offering will run until Aug. 20. 

In March, Saudi Arabia’s Capital Market Authority had greenlit the company’s request to float 4.8 million shares, representing 30 percent of its SR160 million capital, divided into 16 million shares at a par value of SR10 each.


Saudi Arabia, Syria step up industrial cooperation with new economic integration plans

Saudi Arabia, Syria step up industrial cooperation with new economic integration plans
Updated 19 August 2025
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Saudi Arabia, Syria step up industrial cooperation with new economic integration plans

Saudi Arabia, Syria step up industrial cooperation with new economic integration plans
  • Talks focused on boosting joint investments and exploring new channels for industrial integration
  • Syria’s reconstruction phase offers unique opportunities to attract Saudi private sector investments, says minister

RIYADH: Saudi Arabia and Syria are set to strengthen cooperation in the industrial sector and establish joint working groups to advance economic integration between the two countries.

The announcement came after the Kingdom’s Minister of Industry and Mineral Resources Bandar Alkhorayef met with Syrian Minister of Economy and Industry Mohammed Nidal Al-Shaar in Riyadh to review opportunities for collaboration.

The discussions focused on boosting joint investments, encouraging knowledge exchange, and exploring new channels for industrial integration between the two countries.

The meeting came on the sidelines of the Saudi-Syrian roundtable, which saw both countries sign an agreement to protect and promote mutual investments.

Writing on his X account, Alkhorayef described the meeting as a visit “that lays the foundation for building bridges of cooperation and economic integration, in line with the leadership’s directives to develop the Saudi-Syrian partnership, reflecting the depth of the fraternal ties between the two brotherly nations.”

Alkhorayef also emphasized their leaderships’ shared commitment to advancing joint work and strengthening bilateral economic ties, particularly in industry and mining, while also encouraging mutual investments, according to a separate statement posted by the official spokesperson for the Ministry of Industry and Mineral Resources on his X account. 

During the meeting, the Saudi minister highlighted the outcomes of the Saudi-Syrian Investment Forum, which took place in July in Damascus under the patronage of Syrian President Ahmed Al-Sharaa.

He said several agreements had been signed in vital sectors, including industry and mining, describing them as significant steps toward revitalizing Syria’s economy and ensuring sustainable growth.

The Saudi minister also outlined the objectives of the Kingdom’s National Industrial Strategy, stressing its role in shaping industrial integration frameworks with Arab nations.

He underscored the importance of mobilizing the private sector to seize opportunities offered through industrial cooperation with Syria.

Alkhorayef extended an invitation to Al-Shaar to attend the 21st General Conference of the UN Industrial Development Organization, set to take place in Riyadh in November, positioning it as a platform to deepen regional industrial dialogue.

The Syrian minister expressed his country’s readiness to strengthen industrial and investment partnerships with Saudi Arabia, highlighting Damascus’ interest in benefiting from the Kingdom’s advanced industrial expertise.

He said that Syria’s ongoing reconstruction phase offers unique opportunities to attract Saudi private sector investments, especially in the industrial field.

As part of the talks, both sides agreed to form joint technical working groups to follow up on industrial integration initiatives and ensure practical implementation of agreed measures.

The meeting was also attended by Saudi Deputy Minister of Industry and Mineral Resources for Industrial Affairs Khalil bin Salamah, Assistant Minister of Investment Abdullah Al-Dubikhi, and senior officials from the industrial sector.

From the Syrian side, participants included the deputy minister of economy and industry for industry and foreign trade, the head of the Syrian Investment Authority, the director of industrial zones, and representatives from the Syrian sovereign wealth fund.