Saudi Arabia can show oil-rich nations how to tackle global warming, says France’s climate change ambassador 

Special Saudi Arabia can show oil-rich nations how to tackle global warming, says France’s climate change ambassador 
Speaking to Arab News on the sidelines of the Middle East and North Africa Climate Week, Stéphane Crouzat talked up the important role the Kingdom has in helping the world reach its emission-reduction targets. Photo/Supplied
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Updated 09 October 2023
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Saudi Arabia can show oil-rich nations how to tackle global warming, says France’s climate change ambassador 

Saudi Arabia can show oil-rich nations how to tackle global warming, says France’s climate change ambassador 

RIYADH: Saudi Arabia can lead by example when it comes to tackling climate change, as the oil-rich Kingdom pushes for net zero carbon emissions by 2060, France’s climate ambassador has insisted. 

Speaking to Arab News on the sidelines of the Middle East and North Africa Climate Week, Stéphane Crouzat talked up the important role the Kingdom has in helping the world reach its emission-reduction targets. 

Crouzat warned that countries are not moving fast enough when it comes to reforming their energy production and consumption, meaning the target of limiting the global temperature rise to 1.5 degrees Celsius is set to be missed. 

His remarks came as policymakers, activists and scientists met in Riyadh for the event — organized in collaboration with the UN’s Framework Convention on Climate Change — to discuss ways to effectively and sustainably reduce the effects of climate change.  

Reflecting on the Kingdom’s place in the fight against the warming up of the world, Crouzat said: “As an oil country, Saudi Arabia can lead by example, becoming a benchmark for all fossil fuel-dependent countries facing the need to accelerate the transition, by making new commitments in line with the IPCC (Intergovernmental Panel on Climate Change) recommendations. 

“Saudi Arabia, as a member of the G20, is one of the top 20 emitters of greenhouse gasses. We must be ambitious, focusing on the source of these emissions and the least use. We need to set oil exit dates as part of the 2050 trajectory. We all need to prepare for the end of oil.” 

MENA Climate Week, running from Oct. 8 to 12, is seen as a key event ahead of the upcoming UN climate change conference in Dubai in November. 

The closeness of the events only seeks to emphasize the need for urgent action, and Crouzat said: “We are not moving fast enough, at a time when extreme events are multiplying.  

“The first global assessment of the Paris Agreement expected at COP28 will be very important. It must be a response to this lack of action. Every day that passes shows us that it is very difficult to move this huge liner that is the world economy to an alternative way of working. That is why we must be as proactive as possible to accelerate emission reductions. And everyone must take part in the collective effort.” 

He added: “This visit was an opportunity to discuss international climate negotiations on the eve of COP28 and to study together the ways to advance these negotiations crucial for the future of our planet. I have had constructive discussions with H.E. Adel Jubeir, as well as with Saudi Arabian Chief Negotiator Khalid Abulaif.” 

Saudi Arabia has committed to achieving net zero carbon emissions by 2060, as well as ensuring 50 percent of its electricity mix comes from renewables by 2030. 

These goals were lauded by Crouzat as he urged other countries to set equally “ambitious targets.” 

He said: “The fact is clear: the collective progress achieved so far is far from sufficient to reach the +1.5-degree Celsius trajectory of the Paris Agreement.” 

Citing the IPCC call for emissions to be reduced before 2025, the diplomat added: “This is not easy for many countries that remain dependent on fossil fuels, whether they are producers or consumers.” 

The consequences of climate change have fallen disproportionately on low-income countries, who are also the ones to have contributed the least to the problem.  

As a result, much of the discourse around tackling the impacts of global warming centers on emergency measures to help these countries overcome this climate crisis. 

Crouzat cited the recent flooding in Pakistan or Libya as examples of where more needs to be done to help the most vulnerable countries respond to climate disasters. 

“Aid to the most vulnerable countries was the subject of considerable progress at COP27, with the decision to set up a fund dedicated to the response to loss and damage, which we must make operational at COP28. We hope all countries that can contribute will, including Saudi Arabia,” he added. 

The global temperature is rising, but in the MENA, it is increasing twice as much. With this in mind, Crouzat said he would “strongly encourage” regional cooperation to tackle this fundamental change to the climate. 

“An important forum for us is the Baghdad Conference, a regional cooperation forum in which France is fully committed to encouraging the region’s common response to global challenges such as climate change. We hope that the next Conference to be held in Baghdad in November 2023 will bring about further progress and concrete new projects for regional cooperation in the fight against climate change.” 

Concerning pollution of the seas and oceans, entire marine and coastal ecosystems are dying due to warming and acidification of the waters. This is leading to countries applying to the International Court of Justice to seek recompense.  

Crouzat said the two key texts in this area are the 1992 UN Framework Convention on Climate Change, and the Paris Agreement adopted in 2015, which he described as “now the compass of our collective action.” 

The negotiator added: “France and the EU have made particularly ambitious commitments in this context and are implementing them.  

“There was very interesting recent news, since in March 2023 a United Nations General Assembly resolution was adopted by Vanuatu seeking an advisory opinion from the International Court of Justice on the obligations of states on climate change. France co-sponsored this resolution.” 


Aramco cuts Arab Light crude prices to Asia

Aramco cuts Arab Light crude prices to Asia
Updated 08 September 2024
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Aramco cuts Arab Light crude prices to Asia

Aramco cuts Arab Light crude prices to Asia

RIYADH: Saudi Aramco has reduced its October pricing for Arab Light crude oil for Asian buyers, according to a recent price list. The state-owned oil giant has cut the official selling price of its Arab Light crude by 70 cents, bringing it to $1.30 per barrel above the regional benchmark.

This adjustment comes amid a drop in Brent crude prices, which have fallen to $71.49 per barrel—a decrease of $1.20 per barrel (1.65 percent) on the day and the lowest level in years.

Saudi Aramco has also reduced the price of Arab Light crude for Europe and the US. For Europe and the Mediterranean, the Arab Light grade is priced $0.35 above ICE Brent, while for East Asia, the price is set at $1.30 above the average of the Oman and Dubai benchmarks.

The price cuts follow Bank of America's revised forecasts, which now predict Brent crude will average $75 per barrel next year, down from a previous estimate of $80. The forecast for West Texas Intermediate has also been lowered to $71 per barrel from $75.

It is also noteworthy that OPEC+ recently decided to postpone its planned production quota reductions scheduled for October. The new agreement will maintain current production levels for an additional two months.

Citigroup had previously warned that Brent crude could dip below $70 per barrel if OPEC+ proceeded with adding production to the market. However, the two-month delay in adjusting production levels has not significantly impacted prices.


Amman Chamber of Industry exports dip to almost 4% in 8 months

Amman Chamber of Industry exports dip to almost 4% in 8 months
Updated 19 min 35 sec ago
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Amman Chamber of Industry exports dip to almost 4% in 8 months

Amman Chamber of Industry exports dip to almost 4% in 8 months
  • Chemical and cosmetic industries topped the exports list, totaling 1.10 billion dinars
  • Three sectors experienced declines in exports, with the mining industries witnessing the greatest drop

RIYADH: Exports from the Amman Chamber of Industry have decreased by 3.94 percent during the first eight months, reaching 4.55 billion Jordanian dinars ($6.42 billion), compared to the same period in 2023.

Three sectors experienced declines in exports, with the mining industries witnessing the greatest drop of 35.6 percent, according to Jordan’s official news agency Petra.

A decrease of 4.6 percent was also reported by the office supply, packaging, paper, and cardboard industries, while exports from the construction sector fell by 23.1 percent.

Other exports increased in seven areas, ranging from 2.4 percent for the food, agriculture, and livestock sectors to 22.1 percent for the chemical and cosmetics industries.

During this time, the US, Saudi Arabia, Iraq, and India accounted for four major markets for more than half of the chamber’s exports, which totaled 2.90 billion dinars.

Compared to 782 million dinars during the same period in 2023, exports to the US saw a notable 53.2 percent increase, reaching 1.20 billion dinars in the first eight months of the year.

The expansion established the US as the primary destination for Amman’s industrial exports.

Shipments to Iraq increased by 10.8 percent to 609 million dinars, from 549 million dinars during the same period the previous year.

Exports to Saudi Arabia fell 5.5 percent to 521 million dinars, down from 551 million dinars in the same term in 2023. Exports to India declined by 37.6 percent to 567 million dinars, from 908 million dinars.

Arab countries dominated the geographical distribution of exports from the Amman Chamber of Industry, with exchanges of 2.01 billion dinars.

Non-Arab Asian nations followed with 833 million dinars, while African countries earned 23 million dinars in exports.

Exports to North America totaled 1.22 billion dinars, with South American countries importing goods worth 61 million dinars.

EU nations exported 235 million dinars, while non-EU European countries received 96 million dinars. Exports to other global markets totaled 66 million dinars.

The chemical and cosmetic industries topped the Amman Chamber of Industry exports list, totaling 1.10 billion dinars. The mining division followed with exports of 947 million dinars, while the engineering, electrical, and computer technology sectors accounted for 712 million dinars.

Other significant fields included the food, agricultural, and livestock industries, which exported products worth 521 million dinars. Medical and pharmaceutical exports reached 448 million dinars, and leather and textile exchanges totaled 350 million dinars.

Exports from the plastic and rubber industries amounted to 201 million dinars, while the packaging, paper, cardboard, and office supplies sector contributed 181 million dinars.

The construction division exported goods valued at 76 million dinars, and the wood and furniture industries added 14 million dinars in exports.

Founded in 1962, the Amman Chamber of Industry currently represents 8,600 industrial establishments, employing around 159,000 workers, with a total capital of approximately 5 billion dinars.


Oman’s credit grows to $81.6bn in July, up 3.8% yearly

Oman’s credit grows to $81.6bn in July, up 3.8% yearly
Updated 08 September 2024
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Oman’s credit grows to $81.6bn in July, up 3.8% yearly

Oman’s credit grows to $81.6bn in July, up 3.8% yearly

RIYADH: Oman’s total outstanding credit from other depository corporations reached 31.4 billion Omani rials ($81.6 billion) by June, reflecting a 3.8 percent year-on-year increase, according to official data.

The Central Bank of Oman’s latest bulletin reported a 2.3 percent rise in credit extended by traditional commercial banks during this period. Support for the private sector grew by 1.6 percent, totaling 20.5 billion rials by the end of June. Additionally, investments in securities by commercial banks surged by 22.4 percent, reaching approximately 5.6 billion rials.

These developments align with Oman’s Vision 2040, which focuses on diversifying revenue sources, improving financial inclusion, and boosting private sector engagement. The plan aims to enhance the financial sector’s contribution to gross domestic product, promote digital transformation, and increase foreign direct investment in key industries.

Despite the overall growth, investments in government development bonds declined by 8.3 percent year on year to 1.9 billion rials. In contrast, investments in foreign securities saw a significant increase of 67.9 percent, totaling 2.2 billion rials by the end of June.

On the liabilities side, total deposits at commercial banks grew by 10.9 percent, reaching 24.7 billion rials. Government deposits decreased by 0.9 percent to 5.3 billion rials, while deposits from public sector institutions increased by 12.1 percent to 1.8 billion rials. Private sector deposits rose robustly by 11.5 percent, reaching 16.5 billion rials, making up 66.8 percent of total deposits.

Parallel to the banking sector’s growth, Oman’s oil exports saw a slight increase despite reduced production. By the end of July, total crude oil exports amounted to approximately 179 million barrels, with an average price of $82.5 per barrel. Preliminary data from the National Center for Statistics and Information indicates that oil exports accounted for 84.5 percent of the Sultanate’s total oil production, which was 211.8 million barrels.

Vision 2040 seeks to balance maximizing energy revenues with long-term sustainability. The strategy emphasizes improving oil production efficiency, investing in advanced technologies, and expanding the role of renewable energy while gradually reducing the economy’s reliance on oil.

Although oil exports increased by 0.05 percent compared to the previous year, production decreased by 5.2 percent to 211.9 million barrels. Crude oil production saw a notable 7.1 percent decline, reaching 162.2 million barrels, while condensate production increased by 1.6 percent to 49.6 million barrels. Oman’s average daily oil production until July was 994,800 barrels.

China remained the largest importer of Omani oil, with total exports reaching 171 million barrels, a 4.8 percent increase from the same period in 2023. Japan followed with 3.456 million barrels, reflecting a sharp 40.9 percent decline, while South Korea imported 2.5 million barrels, a 28.1 percent increase over the previous year.


Saudi Arabia scraps export customs fees, cuts import charges

Saudi Arabia scraps export customs fees, cuts import charges
Updated 08 September 2024
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Saudi Arabia scraps export customs fees, cuts import charges

Saudi Arabia scraps export customs fees, cuts import charges

JEDDAH: Saudi Arabia will eliminate fees for all customs services related to exports and cut import service fees to 0.15 percent of the goods’ value starting Oct. 6, according to an official release.

The Zakat, Tax, and Customs Authority announced these changes to simplify trade processes and support business activities. The new fee structure introduces a SR15 ($4) charge for customs declaration processing on individual shipments from online stores valued up to SR1,000.

Previously, import fees included SR100 for X-ray inspections per container, SR100 for information exchange services, and SR20 for customs declaration processing. Under the revised system, the maximum import fee will be capped at SR500, with a minimum fee of SR15.

These adjustments are designed to reduce financial burdens on exporters, particularly small and medium-sized enterprises, and to enhance competitiveness. The updated fee structure will standardize costs across land, sea, and air transport, leading to more efficient trade facilitation and economic benefits.

ZATCA has detailed the expected impacts of its new customs fee waiver for Saudi businesses, noting that the changes will enhance the competitiveness and efficiency of the country’s export sectors. The adjustments are designed to reduce import costs and simplify trade procedures, aiming to support the growth of e-commerce.

The introduction of a SR15 flat rate for shipments purchased through online stores underscores ZATCA's commitment to advancing e-commerce and digital trade. This measure is expected to benefit Saudi Arabia’s growing e-commerce sector by lowering cross-border online shopping costs and increasing accessibility to global goods for Saudi consumers.

Recently, ZATCA has announced a series of new initiatives intended to improve trade operations and support the Kingdom’s economic growth, aligning with the nation’s Vision 2030. These initiatives include the Saudi Authorized Economic Operator Program, which aims to streamline customs clearance for trusted businesses. This program provides faster processing, fewer inspections, and priority handling at customs ports for businesses that consistently adhere to regulations.

The Authorized Economic Operator Program is anticipated to simplify international trade for these trusted operators and enhance overall efficiency.

In a major step toward digital transformation, ZATCA has also launched the National Single Window for Trade, known as FASAH. This platform consolidates all trade-related operations into a single digital interface, enabling businesses to manage import and export procedures electronically. FASAH simplifies document submission, approval processes, and shipment tracking, thereby reducing delays and improving transparency in trade operations.

Additionally, ZATCA has rolled out advanced e-tracking systems for shipments entering Saudi customs. This new system offers real-time tracking of goods, helping to minimize delays, reduce fraud risk, and boost logistics efficiency. The implementation of these e-tracking systems represents a significant advancement in Saudi Arabia’s supply chain management.

To encourage greater participation from SMEs in international trade, ZATCA has introduced supportive measures such as customs duty deferrals and simplified clearance procedures. These initiatives aim to ease financial and administrative burdens on SMEs, fostering their growth and engagement in global markets.

In June 2024, ZATCA relaxed the temporary admission regulations for heavy machinery and equipment. This policy change benefits international contractors working on major infrastructure projects by reducing customs duties on temporary imports and eliminating the need for frequent renewals, thereby facilitating smoother and more cost-effective project execution.

ZATCA invites customers and taxpayers to reach out with any inquiries through its unified 24/7 call center at (19993), its X account @Zatca_Care, email at [email protected], or via instant chat on the authority's website at zatca.gov.sa.


Saudi Arabia’s non-oil economy grows 4.9% in Q2: GASTAT 

Saudi Arabia’s non-oil economy grows 4.9% in Q2: GASTAT 
Updated 08 September 2024
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Saudi Arabia’s non-oil economy grows 4.9% in Q2: GASTAT 

Saudi Arabia’s non-oil economy grows 4.9% in Q2: GASTAT 

RIYADH: Saudi Arabia’s non-oil activities expanded 4.9 percent year-on-year in the second quarter of 2024, driven by gains in the financial and insurance sectors, official data showed.  

According to data from the General Authority for Statistics, the financial, insurance, and business services sectors surged 7.1 percent in the second quarter compared to the same period last year.  

Non-oil activity also rose 2.1 percent compared to the previous quarter, reflecting the Kingdom’s efforts to broaden its economic base. 

The non-oil sector's growth aligns with Saudi Arabia’s Vision 2030, a strategic plan aimed at reducing the country's reliance on oil revenues. 

The report further revealed that Saudi Arabia’s seasonally adjusted gross domestic product increased by 1.4 percent in the second quarter compared to the first.  

However, GDP saw a slight year-on-year decline of 0.3 percent in the same period, largely due to an 8.9 percent drop in oil activities following the Kingdom’s decision to cut crude output in line with OPEC+ agreements. 

To stabilize the market, Saudi Arabia reduced oil production by 500,000 barrels per day in April 2023, a cut that has been extended until December 2024. 

GASTAT also noted that the Kingdom’s GDP at current prices reached SR1.02 trillion ($270 billion) in the second quarter.  

“Crude oil and natural gas activities achieved the highest contribution to the GDP at 23.2 percent, followed by government activities at 16 percent, and wholesale and retail trade, restaurants, and hotels activities with a contribution of 10.1 percent,” stated GASTAT.  

Government activities increased by 3.6 percent year-on-year and by 2.3 percent quarter-on-quarter.  

Meanwhile, electricity, gas, and water activities saw an 8.9 percent rise year-on-year, while wholesale and retail trade, restaurants, and hotels grew by 6.8 percent. 

The report also highlighted that government final consumption expenditure rose by 10.9 percent year on year and 4.3 percent quarter on quarter.  

In the second quarter, gross fixed capital formation increased by 3.2 percent compared to the same period last year. 

With continued investments in key sectors such as financial services, infrastructure, and energy, Saudi Arabia remains focused on achieving the goals set out in its Vision 2030 blueprint.