World leaders take centerstage in high-level COP28 event

Update World leaders take centerstage in high-level COP28 event
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Participating world leaders and delegates pose for a family photo during the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Handout via Reuters)
Update World leaders take centerstage in high-level COP28 event
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The COP28 conference notched an early victory on Thursday with the launch of a long-awaited fund to address growing loss and damage from natural disasters. (AFP)
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Updated 02 December 2023
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World leaders take centerstage in high-level COP28 event

World leaders take centerstage in high-level COP28 event
  • UAE ruler announces the establishment of a $30 billion fund for global climate solutions

DUBAI: More than 130 world leaders take centerstage as they address the United Nations climate conference in Dubai over the next two days to deliver national statements.

The high-level segment of COP28 would hear from heads of states and governments, including UAE President Sheikh Mohamed Bin Zayed Al-Nahyan, Egyptian President Abdel Fattah El-Sisi, Jordan’s King Abdullah, Qatar’s ruler Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan.

READ MORE: Click here for our coverage of COP28

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1305 GMT




Recep Tayyip Erdogan, President of Turkiye, speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023. (AP)

“When it comes to combating climate change, even though our historical responsibility of global greenhouse emissions is less than 1 percent, we’re taking significant steps with our own means,” Recep Tayyip Erdogan, President of Turkiye, said in his speech.

“We plan to reach the net zero emissions target by the year 2053, we have doubled our emission reduction target for the year 2030.”

“Within this scope, by the end of this year, we expect to have mitigated 66.6 million tons of equivalent carbon dioxide,” he added.

“The share of renewables in our installed power generation capacity has been increased up to 55 percent. With this rate, Turkiye currently ranks the fifth in Europe and the twelfth in the world in terms of installed renewable energy capacity.”

“In regard to geothermal energy capacity we are ranked the first in Europe and fourth in the world. And when it comes to hydropower, Turkiye ranks the second the Europe and ninth in the world.”

1238 GMT




Santiago Peña Palacios, President of Paraguay.

“In my country Paraguay, all energy is clean. 100 percent is clean and renewable,” according to Santiago Peña Palacios, President of Paraguay.

1230 GMT




to Kassym-Jomart Tokayev, President of Kazakhstan.

“We were the first country in the region to have ratified the Paris Agreement and adopted a carbon neutrality strategy by 2060,” according to Kassym-Jomart Tokayev, President of Kazakhstan.

“The resulting new environmental code of Kazakhstan will drive comprehensive adaptation of green technology in almost every sector in our economy.”

“There is extraordinary potential for wind and solar power in my country as well as green hydrogen. We will continue to work closely with our partners to unlock it,” he said.

“As the world’s leading exporter of uranium, providing 43 percent of global supply, Kazakhstan plays a crucial role in carbon free electricity generation on a global scale. As the world decarbonizes in the coming decades, critical minerals including rare earth metals will become indispensable, Kazakhstan is poised to become a major supplier of these transition minerals.”

“To build a momentum on climate action in central Asia, we decided to convene a regional climate summit in Kazakhstan in 2026 under the United Nations’ auspices.”

1218 GMT




Mohamed Cheikh El-Ghazouani, President of Mauritania.

“Climate change today is a battle for all of us, we either all win or all lose,” Mohamed Cheikh El-Ghazouani, President of Mauritania, said.

“It is clear to all, that this solidarity is still not to the required level, it is therefore essential to improve finance for environmental transformation and to provide support to developing countries without adding to their debt.”

1211 GMT




Denis Sassou Nguesso, President of Congo.

“I take this opportunity to reiterate the Republic of Congo’s steadfast commitment and determination to play an active role in the global effort to combat climate change,” Denis Sassou Nguesso, President of Congo, meanwhile said.

1205 GMT




Umaro Sissoco Embalo, President of Guinea-Bissau.

“Our coastal communities face rising sea levels and their harvests are impacted by increasingly unpredictable weather patterns and we face a loss of biodiversity,” according to Umaro Sissoco Embalo, President of Guinea-Bissau.

1202 GMT




Emmerson Dambudzo Mnangagwa, President of Zimbabwe

“We are offering diverse opportunities for carbon trading in the energy sector though investment in solar, wind, and geothermal power generation,” Emmerson Dambudzo Mnangagwa, President of Zimbabwe, pitched in his speech.

1159 GMT




Gitanas Nausėda, President of Lithuania.

“At first, Lithuania made a strategic decision to seek energy independence. We have built our own LNG terminal which decreased prices and turned Lithuania into a regional gas hub,” Gitanas Nausėda, President of Lithuania, said in his speech.

1156 GMT




Samia Suluhu Hassan, President of Tanzania.

“At this COP28, we seek to mobilize the pot to increase the use of clean and affordable cooking fuel and technologies across Africa, especially for women,” Samia Suluhu Hassan, President of Tanzania, said at the High-Level Segment for Heads of State and Government session at the United Nations climate summit.

1150 GMT




Ursula von der Leyen, President of the European Commission.

“Last September, at the climate action summit in New York, we called for concrete action. Now in Dubai we have to deliver,” Ursula von der Leyen, President of the European Commission, told the High-Level Segment for Heads of State and Government session at the United Nations climate summit.

“The European Union has peaked already, we have reduced emissions and we are on track to overshoot our target for 2030.”

1137 GMT




Sheikh Mansour bin Zayed Al-Nahyan, Vice President and Deputy Prime Minister of the UAE. (Abdulrahman Fahad Bin shulhub/AN)

“We work today for tomorrow, and we cooperate for the generations of the future,” Sheikh Mansour bin Zayed Al-Nahyan, Vice President and Deputy Prime Minister of the UAE, said in his speech.

“We were the first to pledge to achieve carbon neutrality by 2050. We have allocated $163 billion for expansion of renewables and to transition towards renewable energies,” he added.

1130 GMT




Shavkat Mirziyoyev, President of Uzbekistan, at the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023.

“We commend the global initiative of the UAE in combating climate change and its significant contribution to green development,” Shavkat Mirziyoyev, President of Uzbekistan, said in his speech.

“Transition to a green economy and achieving carbon neutrality are the key strategic objectives of new Uzbekistan… We intend to organize a conference in Uzbekistan in 2024, on the topic of climate migration” in cooperation with the United Nations.”

1116 GMT




Kenyan president William K. Ruto speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023.

“As we convene here in Dubai, we must appreciate that the presence of almost 200 nations speaks volume about the magnitude of this event and what it stands for,” according to Kenyan president William K. Ruto.

“The long-standing adversarial dynamic between global north and global south proves practically counterproductive. This division has hindered our ability to unite and leverage our collective strength, and robs us of tremendous opportunities. Yet, in the face of a threat that endangers the health of our planet, and our very existence, we must find in collective action a force that neutralizes and transcends these divisions. Climate change does not respect artificial distinctions, traditional boundaries or old antagonisms. Instead, it should unite us against a shared borderless challenge,” according to Ruto.

“Turning Africa into a green powerhouse is not just essential for the continent, it is also vital for global industrialization (and) decarbonization.”

1114 GMT




Sultan Hassanal Bolkiah of Brunei speaks during the High-Level Segment for Heads of State and Government session at the United Nations climate summit on Dec. 1, 2023. (AFP)

“Climate change has emerged as our generation’s most urgent challenge, threatening our existence,” according to Sultan Hassanal Bolkiah of Brunei.

“We aim to plant half a million trees by 2035, expanding our carbon think further,” the Brunei leader said.

1101 GMT




Jordan’s King Abdullah II speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)

“This year’s conference of the parties must recognize even more than ever that we cannot talk about climate change in isolation from the humanitarian tragedies unfolding around us,” King Abdullah II of Jordan said in his speech.

“As we speak, the Palestinian people are facing an immediate threat to their lives and wellbeing. In Gaza over 1.7 million Palestinians have been displaced from their homes. Tens of thousands have been injured or killed in a region already on the front line of the climate change.”

“As we meet here today to talk about inclusivity in climate response, let’s be inclusive of the most vulnerable: Palestinian civilians impacted by the war on Gaza, populations around the world affected by conflict and poverty,” he added.

“In a region already on the front lines of climate change, the massive destruction of war makes these environmental threats of water scarcity and food insecurity even more severe,” he said, in a clear reference to fighting between Israel and Hamas militants in Gaza that resumed on Friday after a seven-day truce.

1055 GMT




Egypt’s President Abdel Fattah El-Sisi speaks during the high-level Segment session at the United Nations climate summit on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)

“COP28 is taking place amid dangerous and grave political challenges that are no less dangerous than climate change,” Egypt’s President Abdel Fattah El-Sisi said at high-level session at the United Nations climate summit.

“Egypt is well aware of the importance of reinforcing collective work to address the challenge of climate change and to guarantee eco -friendly development to preserve planet earth for coming generations.”

1041 GMT




Dennis Francis, president of the UN General Assembly, speaks during a plenary session at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

“The Paris agreement remains the best answer to the effects of the climate crisis,” according to Dennis Francis, President of the United Nations General Assembly.

“Progressive transformative action is needed now, to stabilize the atmospheric temperature and to insure sustainability of the planet and the human civilization,” he said during a plenary session at the COP28 UN Climate Summit.

“I am pleased to announce that I will convene the first ever general assembly sustainability week at UN headquarters in New York in April 2024.”

“This week will consolidate several high level already mandated events, promoting sustainability in transport, tourism and infrastructure sectors,” Francis added.

“We need to not only be risk informed but also resilient at every level and across all stakeholders, thus leaving no one behind.”

1032 GMT




Narendra Modi, India’s Prime minister speaks at the COP28 High-Level Segment National Statements event. (Reuters)

“Thanks to our collective efforts, today the world is convinced that for the welfare of humanity, everyone’s interest must be protected and everyone’s participation is essential,” Narendra Modi, India’s Prime minister, said at the COP28 High-Level Segment National Statements event.

“We have set targets to bring our emission intensity down to 45 percent by 2030, we have decided that we will increase the share on non-fossil fuel to 50 percent and we shall continue to move ahead in achieving our goal of net zero by 2070.”

“We have together recognized that there’s a need to take climate finance commitment from billions to several trillions. We do not have much time to correct the mistakes of the last century, over the past century a small section of humanity has indiscriminately exploited nature, however entire humanity is paying the price for this,” he said.

“Friends, we do not have much time to correct the mistakes of the last century. Over the past century, a small section of humanity has indiscriminately exploited nature. However, entire humanity is paying the price for this, especially people living in the global south.”

“We must resolve that every country shall fulfil the climate targets it is setting for itself and the commitments it is making.”

Modi also offered to host the UN’s COP33 climate conference in 2028. Speaking at COP28 talks in Dubai, Modi said every country must fulfil their climate targets and “work in unity.”

“Today the entire world is watching us. Mother Earth is looking toward us to protect her future. We have to succeed,” he said.

“From this platform today, I propose that India will host COP33 in 2028.”

Modi has sought to raise India’s profile on the world stage as leader of the planet’s most populous country, which hosted a G20 summit this year.

0920 GMT




President Luiz Inacio Lula da Silva of Brazil speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023. (AP)

Luiz Inacio Lula da Silva of Brazil, home to most of the world’s biggest natural carbon-capture zone on land, the Amazon rainforest, said “the planet is tired of climate agreements that were not fulfilled” and he said he has had enough of “eloquent and empty speeches.”

“In the north of Brazil, the Amazon region suffers one of the most tragic droughts of its history. In the South, we are facing tempests and hurricanes that lead to a lot of destruction and death,” he said.

Lula, who a year earlier was treated like a rock star after his defeat of right-wing Jair Bolsanaro, called for climate justice for poorer nations that didn’t cause the problem and railed against $2 trillion spent on weapons last year when the money should be spent on fighting hunger and climate change, not wars.

He said Brazil will stop Amazon deforestation by 2030.

“No country will solve their problems alone. We are all obliged to act together beyond our borderlines. Brazil is willing to lead as a role model,” he said. “The world is already convinced of the potential of renewable sources of energy. Now is the time to face the debate about the slow-motion pace of the decarbonization of the planet, and to work towards an economy that will be less reliant on fossil fuel. We have to do it, and in a way that is urgent and fair.”

0850 GMT




King Charles III speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

Britain’s King Charles III is praying that the UN’s COP28 climate talks will be a “critical turning point” in the fight against global warming, he told world leaders in Dubai on Friday.

“I pray with all my heart that COP28 will be another critical turning point toward genuine transformational action,” he told the World Climate Action Summit, held in parallel with COP28.

“We are seeing alarming tipping points being reached.”

“It worries me greatly that we remain so dreadfully far off track,” the King added, after the UN’s first official progress report in September found that the world remained dangerously off course.

“In your hands is an unmissable opportunity to keep our common hope alive,” said the British monarch, wearing a light suit with pink shirt and blue tie.

The lifelong environmentalist spoke at COP26 in Scotland in 2021 but did not attend the last conference in Egypt.

The British monarch also said that “unless we rapidly repair and restore nature’s unique economy, based on harmony and balance, which is our ultimate sustainer, our own economy and survivability will be imperiled.”

“I have seen across the commonwealth and beyond, countless communities which are unable to withstand repeated shocks triggered by climate change.”

0830 GMT




UN Secretary-General Antonio Guterres speaks at the opening ceremony of the high-level COP28 event in Dubai. (AP)

“We are miles from the goals of the Paris Agreement – and minutes to midnight for the 1.5°C limit. But it is not too late,” UN Secretary-General Antonio Guterres said in his speech.

“You can prevent planetary crash and burn. We have the technologies to avoid the worst of climate chaos, if we act now,” he said.

“The global shift to renewables is inevitable. The only question is how much heating our planet will endure before it happens,” Guterres added. “I urge countries to speed up their net zero timelines, to get there as close as possible to 2040 in developed countries and 2050 in emerging economies.”

“Climate chaos is fanning the flames of injustice,” Guterres said. “Global heating is busting budgets, ballooning food prices, upending energy markets, and feeding a cost-of-living crisis. Climate action can flip the switch.”

Guterres, a long-time critic of oil, gas and coal use that is causing climate change, fired his strongest shots yet against the industry, saying, “we cannot save a burning planet with a firehose of fossil fuels.”

In a direct contradiction to fossil fuel-aligned nations and even the presidency of the talks, he said the only way to limit warming to the goal set in 2015 requires eliminating oil, coal and gas use, saying “not reduce, not abate, phase out.”

“I urge governments to help industry make the right choice – by regulating, legislating, putting a fair price on carbon, ending fossil fuel subsidies, and adopting a windfall tax on profits.”

“Developed countries must show how they will double adaptation finance to $40 billion a year by 2025, as promised, and clarify how they deliver on the $100 billion, as promised,” Guterres said. “The climate challenge is not just another issue in your inbox. Protecting our climate is the world’s greatest test of leadership. I urge you to lead,” he added.

0815 GMT




UAE President Sheikh Mohamed Bin Zayed Al-Nahyan speaks during an opening ceremony at the COP28 UN Climate Summit on Dec. 1, 2023 in Dubai. (AP)

UAE President Sheikh Mohamed Bin Zayed Al-Nahyan said that the UAE has set a national goal to achieve net-zero emissions by 2050. He highlighted the country’s strong commitment to climate action, emphasizing decades of effort in diversifying the economy and advancing capabilities in renewables.

“The UAE is committed to a 40 percent reduction in emissions by 2030. To date, we have invested $100 billion in financing climate action, focusing on renewable and clean energy. We are also committed to investing approximately US$130 billion over the next seven years,” he said in his speech

“We are finding practical ways to accelerate the world’s transition to low-emission economy,” the UAE leader said, and noted that the lack of financing has long been one of the biggest obstacles to advancing climate action globally.

Sheikh Mohamed also announced the establishment of a $30 billion climate fund for global climate solutions.

The fund is designed to bridge climate finance gap and aims to stimulate $250 billion of investment by 2030, he said.

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Participating world leaders pose for a family picture at the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders pose for a family picture at the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates arrive for the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (Abdulrahman Fahad Bin shulhub/AN)
Participating world leaders and delegates pose for a family photo during the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates pose for a family photo during the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates pose for a family photo during the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)
Participating world leaders and delegates pose for a family photo during the COP28 United Nations climate summit in Dubai on Dec. 1, 2023. (AFP)

The COP28 conference notched an early victory on Thursday with the launch of a long-awaited fund to address growing loss and damage from wilder weather and rising sea in vulnerable countries.

Initial pledges have been made to the fund to officially put it into operation, with a $100-million contribution from the UAE matched with the same from Germany.

Britain gave just over $50 million, while the United States offered $17.5 million and Japan $10 million.

The European Union and its member states later confirmed a further $145 million, bringing the total to more than $420 million so far.

Delegates however face two weeks of tough negotiations on an array of issues that have long bedeviled climate talks, starting with the future of fossil fuels.

Saudi Arabia is hosting the third edition of the Saudi Green Initiative Forum on Dec. 4, alongside UN’s COP28 event, to highlight its dedication to build a greener future at a time of multibillion dollar giga-projects.

 

 

The SGI forum will gather influential figures, climate experts and thought leaders to present their insights and recommendations for tackling climate change as well as showcase the initiative’s achievements and plans.

with agencies


Saudi banks’ aggregate profit reaches 14-month high of $2bn

Saudi banks’ aggregate profit reaches 14-month high of $2bn
Updated 07 July 2024
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Saudi banks’ aggregate profit reaches 14-month high of $2bn

Saudi banks’ aggregate profit reaches 14-month high of $2bn

RIYADH: Saudi banks aggregate profit reached a 14-month high of SR7.33 billion ($1.96 billion) in May, marking an annual 16 percent rise, newly released data has revealed.

According to the Saudi Central Bank, also known as SAMA, these figures represent profits before zakat and taxes. 

Cumulatively, from the beginning of the year to the end of May, banks recorded a total profit of SR34.78 billion, compared to SR31.12 billion during the same period last year.

In June, a McKinsey report highlighted that high hydrocarbon prices, rapid economic expansion, and low unemployment, along with favorable demographics, ambitious public investments, and moderate inflation, have collectively bolstered robust balance sheets and strong margins among Saudi banks.

This region has been enjoying an evolving regulatory environment marked by greater openness, new frameworks for innovation, and measures to improve the ease of doing business.

All Gulf Cooperation Council countries maintain their currencies pegged to the US dollar, causing regional interest rates to closely mirror movements in Washington. In 2023, as the Federal Reserve’s monetary policy increased financing costs in the GCC, both local and global bank profits surged.

Concurrently, headline inflation was moderate, estimated at 2.6 percent in 2023 and projected to decrease to 2.3 percent in 2024 according to McKinsey.

According to the firm, all GCC banks outperformed their counterparts in developed and many emerging markets, remaining on a rapid growth trajectory. They primarily rely on stable domestic deposits, which have proven resilient during economic downturns.

In comparison to April, banks’ profits before zakat and tax rose by 9 percent, marking the highest monthly increase in the past five months.

McKinsey nevertheless highlighted the potential risk to the GCC banking sector if interest rates were to fall and bank managers were to be complacent.

This complacency might deter them from pursuing ambitious transformation initiatives that are crucial for long-term sustainability and growth.

The firm warned that the current high-interest-rate environment, which has bolstered bank profitability, may not persist indefinitely. 

If inflationary pressures in the US ease, the Federal Reserve could adjust its monetary policy, potentially lowering interest rates, and thus reduce bank profits.

The advice is for bank executives to not assume that high profits are the new norm and instead prepare for potential future declines in profitability.

It suggests that banks should use their current strong financial position to invest in transformative changes and cost reductions. By doing so, they can enhance efficiency and resilience, ensuring they remain competitive even when interest rates decrease.

The International Monetary Fund praised SAMA’s efforts to safeguard the Kingdom’s financial stability in a June report. It has emphasized that the central bank continues to advance the modernization of regulatory and supervisory frameworks.

Significant progress has been made in developing its financial safety net framework, encompassing bank resolution, emergency liquidity assistance arrangements, and deposit protection fund.


Saudi Arabia keen to get more women in the workforce

Saudi Arabia keen to get more women in the workforce
Updated 06 July 2024
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Saudi Arabia keen to get more women in the workforce

Saudi Arabia keen to get more women in the workforce
  • Saudi women in tourism and hospitality sectors underline power of workforce diversity, experts explain

RIYADH: Tourism and hospitality in Saudi Arabia are experiencing a remarkable transformation driven by the increased participation of women, thanks to inspirational leaders and strong government action.

This shift is significant considering that tourism is one of the few global industries where women already constitute the majority of the workforce.

Saudi Arabia is keen to get more women in the workforce, and the Kingdom has already surpassed its Vision 2030 ambition of achieving 30 percent female participation in the labor market.

Indeed, the goal has now been upscaled to 40 percent — double the rate seen in 2010, according to World Bank figures.

Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area.

According to EHL Insights, just five years ago, Saudi females faced significant barriers when it came to working in hospitality companies, and women had to go to great lengths to convince their families to allow them to pursue education or employment opportunities in this industry.

This has changed thanks to the economic and cultural shifts spearheaded by the Vision 2030 initiative, and according to data issued by R Consultancy Group in March, 45 percent of the sector’s workforce now comprises female professionals – 925,000 workers.

“There are several inspirational female leaders that have helped to strategically shape both the Saudi tourism sector and the regional tourism sector more broadly such as Princess Haifa bint Mohammed Al-Saud, vice minister of tourism, and Basmah Al-Mayman, regional director of the UN World Tourism Organization,” Anne-Laure Malauzat, partner at Bain & Co. in the Middle East, told Arab News.

She  went on to stress that on the ground in Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“Examples of these success stories include Sarah Gasim, senior vice president — head of KSA Hotels and Hospitality at JLL — who managed hotel complexes in the past. (She) is a published author and lectured on hospitality, helping to shape future generations in the sector,” Malauzat said.

From Red Sea Global’s point of view, spokesperson Zainab Hamidaddin Al-Hanoof Al-Hazzani told Arab News that women bring unique perspectives, skills, and insights to roles such as hospitality management, customer service, marketing, and event planning, which significantly enhance the overall quality of service and customer satisfaction. 

Tourism and hospitality is seen as a sector where women can thrive, and the Kingdom is working hard to create more opportunities in this area. (SPA)

“Their diverse perspectives, enhanced service delivery, and inclusive workplace contributions are driving innovation and economic growth, making them indispensable to its success,” she said.

Al-Hazzani claimed that women are actively shaping the future of the tourism and hospitality industry in Saudi Arabia, adding: “This is particularly true at RSG where women play a pivotal role in elevating guest experiences, fostering cultural diversity, and contributing to the overarching success of our projects.

For example, our Elite Graduate Program has provided employment opportunities for 250 individuals, with 30 women advancing to management positions.” 

Opportunities and challenges for women in the tourism and hospitality sector 

The tourism and hospitality sector in Saudi Arabia is undergoing a significant transformation, with a growing focus on cultural tourism, luxury experiences, and heritage preservation which presents a wealth of opportunities for women.

Laila Kuznezov, director, Implementation Practice at management consulting firm Oliver Wyman told Arab News that from leadership roles in hotel management to careers in event planning, cultural tourism experiences, and hospitality education, women can leverage their “unique skills and perspectives” to shape the future of Saudi tourism. 

“By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world. With a diverse pool of talent contributing to the industry, they can create a world-class visitor experience that reflects the Kingdom’s rich heritage, culture tapestry, and forward-thinking vision for the future,” Kuznezov added.

Speaking on the key constraints women face in entering the labor force and securing employment, Kuznezov shed light on how many of the barriers in Saudi Arabia are similar to those faced globally. 

By empowering women in tourism and hospitality, they are not only creating a more inclusive workforce, but also sending a powerful message to the world.

Laila Kuznezov, director, Implementation Practice at Oliver Wyman

“A gender wage gap persists, and women at certain education levels, particularly those with only a secondary school leaver’s certificate, have much lower participation rates than men. A huge opportunity lies in capitalizing on the highly skilled female workforce in Saudi Arabia,” she explained.

The director also noted that: “We need to see more women as CEOs, CFOs, and senior managers across all industries, particularly in highly productive sectors driven by technology and knowledge. Encouraging female entrepreneurship is also crucial. The talent and ambition are there – it’s about providing continued support and fostering a culture that actively supports and promotes women in transformative roles.”

She continued to clarify that the recent rise in female labor force participation is a positive indicator, but the next step is ensuring these women secure high-quality jobs that leverage their full capabilities.

“It is also important to support gains for women at all levels and geographic areas. A key focus in Saudi Arabia is ensuring access to the training and childcare options needed for success, especially for women who have been out of the workforce for long periods of time, are first-time job holders, or have lower education levels,” Kuznezov emphasized.

“Since Saudi women tend to stay closer to their hometowns, geographically dispersed training programs and readily available childcare are crucial to expanding regional employment opportunities,” the director further said.

According to Kuznezov, Saudi Arabia is embracing a progressive approach by developing and enabling regulations to promote new forms of work, such as freelancing, part-time work, platform and gig economy work, and remote working.

“These models offer women increased flexibility and more channels to enter and participate in the workforce, which should contribute to continuing the positive trends of increased participation and reduced unemployment for women,” she said.

Women participation’s impact on Vision 2030

Female participation in the tourism and hospitality sector has helped support the Vision 2030 agenda on multiple fronts, believes Bain & Co.’s Malauzat. 

“From a talent perspective, enabling the sector transformation through their leadership, skills, and contribution across all parts of the tourism and hospitality lifecycle,” she said. 

FASTFACT

In Saudi Arabia, there is a massive presence of women across different parts of the tourism and hospitality sectors, from the architects designing the Kingdom’s key airports, passport control officers, and cab drivers as well as hospitality leaders and tourist guides.

“From a consumer understanding perspective, women globally take an estimated 80 percent of consumer-related decisions so having women represented in the sector is critical to ensure a real understanding of consumers in this space,” the partner affirmed.

She concluded: “From a gender equity perspective, this has been an important contributing factor to helping the Kingdom achieve its overall aspirations for female participation in the labor market nationally.”

From RSG’s lens, according to Al-Hazzani, by actively promoting gender diversity in the workforce within the tourism and hospitality sector, the firm is taking significant strides towards realizing the vision outlined in Vision 2030.

“This initiative aligns seamlessly with the broader objective of cultivating a vibrant and inclusive economy that harnesses the full spectrum of talent and capabilities within the nation,” Al-Hazzani said.

“Recognized as a fundamental driver of economic diversification, the tourism and hospitality sector in particular benefits immensely from the integration of female talent. Their presence not only fuels the sector’s growth but also enhances its competitive edge and long-term viability through delivering an enriched tourism experience and driving innovation,” she added.

The spokesperson justified that by prioritizing gender diversity in the tourism and hospitality workforce, RSG is not only embracing Vision 2030’s ideals but also paving the way for other sectors to do the same.

“Our dedication to inclusivity not only strengthens our economy but also reaffirms our collective commitment of creating a more prosperous and equitable society,” Al-Hazzani concluded.


Saudi banks extend $2bn in new home loans, hitting 16-month high

Saudi banks extend $2bn in new home loans, hitting 16-month high
Updated 07 July 2024
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Saudi banks extend $2bn in new home loans, hitting 16-month high

Saudi banks extend $2bn in new home loans, hitting 16-month high
  • Bank profits come amid increased mortgage lending, with sector seeing a 13 percent rise in new home loans

RIYADH: Saudi banks extended SR7.67 billion ($2.05 billion) in residential new mortgage loans to individuals in May, reflecting an annual 13 percent rise, according to the latest data.

Figures released by the Saudi Central Bank, also known as SAMA, showed that this amount marked a 16-month high.

In May, lending for houses accounted for 67 percent of total new bank mortgages, a decrease from 69 percent compared to the same month last year.

Recent data on mortgage figures is a testament to the sustainable demand in housing coupled with an agile and efficient regulatory environment.

Elias Abou Samra, CEO at Rafal Real Estate Development Co.

Meanwhile, lending for apartments increased to 28 percent from 25 percent, while land constituted the smallest portion at 5 percent, down from 6 percent.

Elias Abou Samra, the CEO at Rafal Real Estate Development Co., said: “Recent data on mortgage figures is a testament to the sustainable demand in housing coupled with an agile and efficient regulatory environment.”

He added: “We believe that the market has priced in higher-for-longer interest rates and the buyers are convinced that waiting for normalization of interest rates to buy new homes could be offset by a larger increase in prices.” 

Interest rates in the Gulf Cooperation Council nations are significantly influenced by their currency pegs to the US dollar.

This pegging arrangement means that these countries typically follow US monetary policy decisions, particularly those set by the Federal Reserve. Recently, high interest rates in the market have posed challenges for individuals seeking housing loans, as the cost of credit has escalated.

Many had been anticipating a reduction in those rates by the Fed, which could potentially alleviate borrowing costs. However, the current outlook remains uncertain due to persistently high inflation rates in the US.

This uncertainty casts a shadow over the possibility of decreased rates in the foreseeable future, impacting both financial markets and consumer decisions in the housing sector across GCC economies.

However, according to Abou Samra, after a period of wait-and-see, the housing market in the Kingdom is now beginning to regain some of the momentum and activity it had shown before interest rates rose.

Essentially, potential buyers have overcome their initial hesitancy, likely influenced by elevated borrowing costs, and are now actively pursuing homeownership, thereby boosting their demand for bank credit.

The highest growth rate during this period was observed in apartment lending rising by 24.15 percent. In comparison, house lending grew by 9.17 percent, while land saw a growth of 6.54 percent.

“Another important factor is the availability of new products and typologies, particularly in the multi-family segment, that meets the aspiration of young Saudi families and resident expats. We are moving into a higher level of sophistication on the demand and supply side of the equation,” Abou Samra said.

A survey conducted by global property consultancy Knight Frank revealed in a March report a notable shift in expat preferences, with 68 percent expressing a strong inclination towards owning an apartment rather than a villa. This preference is particularly strong among those aged 35-55.

The firm also noted that many respondents are moving from villas to apartments, influenced by factors like the higher costs of the former, affordability concerns, and potentially differing cultural preferences compared to Saudi nationals.

Additionally, the appeal is further highlighted by the fact that 53 percent of surveyed expats expressed a preference for owning a two or three-bedroom apartment. This inclination is likely due to the smaller family sizes typically found among them compared to Saudi nationals.

A 2024 study by Deloitte revealed that in Riyadh, around 80 percent of apartment transactions the previous year fell within the SR250,000 to SR1 million range, primarily serving the low to mid-income segments.

It noted that north Riyadh has become a prominent residential area, while the south zone has seen significant transaction growth due to affordable housing options.

In Jeddah, there is increasing demand for upper-middle to high-end residential properties, particularly in the Northern part, which has experienced notable price increases.

In the Dammam Metropolitan Area, the report indicated that the residential supply is concentrated in the northern regions, targeting the midscale population segment with apartments priced mostly below SR930,000.

When asked about the potential risks of increased demand further driving up prices, especially given the lack of foreseeable interest rate reductions, Abou Samra said that he believes his real estate company has navigated through the challenges posed by high interest rates, noting a slowdown in growth over the past 18 months.

He expressed confidence in the sustainability of current demand levels, stating that a slowdown is not anticipated in the near future. The CEO also emphasized the importance of maintaining a balanced market to prevent excessive increases in land prices.


Edtech startups flourish in first week of July

Edtech startups flourish in first week of July
Updated 06 July 2024
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Edtech startups flourish in first week of July

Edtech startups flourish in first week of July
  • Startup ecosystem busy with venture investments and strategic acquisitions

CAIRO: From educational technology to digital content and cryptocurrency, the startup ecosystem is buzzing with activity as significant venture investments and strategic acquisitions take place across various sectors.  

Saudi-based Jeel, an edtech startup for children, adolescents, parents, and educators, has secured a seven-figure funding from RZM Investment and a group of prominent angel investors.

Jeel plans to strengthen its presence in the business-to-business and business-to-government sectors by offering its services to institutions and governments. 

“Our goal is to broaden our scope and impact in digital content by partnering with institutions and governments, thereby driving growth in the sector,” said a Jeel spokesperson.  

The funding will also be used to add new languages to the Jeel app, aiming to attract more users from various Arab countries and expand into new markets within the region. 

“We are committed to providing a superior user experience by integrating new features and continually improving our app,” the spokesperson added. 

Additionally, the company will launch a comprehensive online store to facilitate the purchase of Jeel app-related products and services, providing users with a seamless experience and contributing to the company’s revenue growth. 

“With this investment, Jeel reaffirms its commitment to providing innovative and purposeful digital content for children, adolescents, parents, and educators, with a focus on enhancing and enriching the Arabic language,” the spokesperson added.  

This strategic investment will enable Jeel to further its mission of delivering high-quality educational and entertaining digital content, positioning itself as a leader in the industry, the release stated.

CoinDCX acquires BitOasis to strengthen MENA presence 

CoinDCX, India’s largest crypto exchange, has announced the acquisition of BitOasis, a UAE-based virtual assets trading platform.  

This strategic move follows CoinDCX’s investment in BitOasis in August 2023 as the company aims to strengthen its presence in the Middle East and North Africa.

The acquisition will empower BitOasis to expand its presence across the MENA region, leveraging its newly acquired license in Bahrain and its platform reopening in Dubai. 

Established in 2018, CoinDCX claims it boasts a robust user base of over 15 million and facilitates average quarterly trading volumes exceeding $840 million in spot in 2024.  

“Building on six years of success, CoinDCX aims to become the go-to trading platform for crypto worldwide,” said Sumit Gupta, co-founder of the firm. 

Jeel plans to strengthen its presence in the business-to-business and business-to-government sectors by offering its services to institutions and governments. (Supplied)

“For us, investor protection has been paramount, and we have distinguished ourselves in India with unwavering compliance,” he added. 

BitOasis, founded in 2016 by Ola Doudin, Tarek Kaylani, and Daniel Robenek, is the first and largest crypto asset exchange in the MENA region. It is available in 15 countries across the region, allowing its users to buy, hold and sell over 60 cryptocurrencies. 

The company claims to have processed over $6 billion in trading volume and secured more than $40 million in funding from leading regional and global investors.  

“CoinDCX’s acquisition marks an exciting new chapter for BitOasis, one that propels us forward on much stronger ground,” said Doudin, CEO of BitOasis.  

“Trust and regulatory compliance have been key pillars in our mission to drive crypto adoption across MENA,” she added. 

The acquisition will enable BitOasis to offer a broader product portfolio, enhanced crypto services, increased liquidity, and improved trading options.  

“Users can expect an overall enhanced experience with access to a wider range of tokens and better trading options,” Doudin added.  

Sumit Gupta emphasized that BitOasis’ brand and leadership team will remain unchanged following the acquisition, fostering seamless synergy and collaboration between both organizations.  

“Joining forces with BitOasis aligns perfectly with our vision of establishing a formidable foothold across the MENA region, catering to a diverse range of retail and institutional clients,” Gupta said.

EdVentures invests $400k in Egyptian online education platform El Kheta 

Egyptian EdVentures, the investment arm of Nahdet Misr Group specializing in educational technology, has announced a $400,000 investment in El Kheta, an online platform for Egyptian students.   

El Kheta offers reinforcement lessons, exams, and interactive videos from the new Egyptian curriculum, providing students with a customized and flexible educational experience.  

“We firmly believe in the potential of the El Kheta platform to revolutionize the online education sector in Egypt,” said Dalia Ibrahim, founder and chairwoman of Nahdet Misr for Entrepreneurship EdVentures.  

“We are committed to supporting talented entrepreneurs in the educational technology sector and helping them achieve their vision of creating a better and easier educational experience for everyone,” she added. 

The El Kheta platform offers students the ability to choose their preferred curricula and create study plans that suit their needs.  

Services include reinforcement lessons, interactive educational videos, homework assignments, and direct communication with teachers.  

This personalized approach aims to improve students’ academic performance and overall success. “Our goal is to empower youth and expand the scope of online education opportunities for school students in Egypt,” Ibrahim said.

Germany’s Mitgo Group launches $20m fintech Capy 

Germany-based holding company Mitgo Group has launched a $20 million fintech startup called Capy, targeting the MENA market.  

This investment package will be distributed over the next three years. The initial tranche will be allocated towards developing the platform’s first version, with a particular focus on early and accelerated payment solutions. 

In the first quarter of 2024, Mitgo Group announced the introduction of fintech services for publishers in the affiliate market, including cashback services, media buying, loyalty programs, and buy-now-pay-later services.  

This new direction is being launched on the foundation of the recently acquired UAE-based embedded finance platform, Embedded.

Since the acquisition, Embedded has received additional funding and comprehensive support, and it has been relaunched as Capy within Mitgo’s global holding company.


Middle East airlines see 9.7% passenger demand growth: IATA

Middle East airlines see 9.7% passenger demand growth: IATA
Updated 05 July 2024
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Middle East airlines see 9.7% passenger demand growth: IATA

Middle East airlines see 9.7% passenger demand growth: IATA

RIYADH: Middle Eastern airlines saw a 9.7 percent annual growth in passenger demand in May fueled by an increase in Asia-related travel, according to an industry body. 

In its latest report, the International Air Transport Association said that the total capacity of airlines in the region posted a growth of 9 percent year-on-year in May. 

Moreover, the Middle East region handled 9.4 percent of the overall passengers globally in May, a figure that remained unchanged from the previous month. 

Countries in the Middle East, including Saudi Arabia, have been strengthening their aviation sector over the past few years as they continue their economic diversification journey by reducing their decades-long dependence on oil. 

Saudi Arabia’s national aviation strategy aims to triple the number of passengers compared to 2019, handling 4.5 million tons of cargo, and establishing more than 250 direct destinations from the Kingdom’s airports to global locations. 

In May, a report released by the Kingdom’s General Authority of Civil Aviation revealed that the sector contributed $21 billion to the Kingdom’s gross domestic product in 2023. 

The IATA report notes that the Asia – Middle East route “ranks second only to within Asia in terms of RPK (revenue passenger kilometers) levels” as it highlighted the strength of travel between the two regions.

It went on: “The route pair has regained 2019 levels and set new records to-date for the whole 2024, standing 32 percent above the corresponding value of 2019 thus demonstrating strengthening flight demand between the two regions. Contributing factors to this disproportionate demand are geopolitical tensions and war in Ukraine which would divert passengers through the Middle East to reach Asia as a safer route.”

The Russia-Ukraine war was also cited as a potential influence on the continued growth of the  Europe-Middle East route, which saw an April-May RPK increase for two years in a row, reversing the previous historic pattern of a decline between these months, noted the report.

“In the coming months, it will become clearer to what extent these trends could be related to the Russia-Ukraine war,” said IATA.

Earlier this month, another report released by IATA revealed that Middle Eastern airlines witnessed a 15.3 percent year-on-year demand growth for cargo in May, driven by growing e-commerce and maritime issues. 

The report also added that the total cargo capacity of carriers in the region increased by 2.7 percent in May compared to the same month of the previous year.

IATA further pointed out that the Middle East region handled 13.5 percent of the overall cargo globally, a figure that remained unchanged from the previous month. 

Global outlook of passenger demand

According to the report, global passenger demand – measured in RPK – rose by 10.7 percent in May compared to the same period of the previous year. 

Similarly, total capacity, measured in available seat kilometers, also rose by 8.5 percent year-on-year in the fifth month of the year.

“Airlines filled 83.4 percent of their seats, a record for the month. With May ticket sales for early peak-season travel up nearly 6 percent, the growth trend shows no signs of abating,“ Willie Walsh, director-general of IATA. 

He added: “Airlines are doing everything they can to ensure smooth journeys for all travelers over the peak northern summer period.” 

Asia-Pacific region leads passenger demand

According to the report, airlines operating in the Asia-Pacific region led passenger demand globally, marking a 27 percent growth in May compared to the same month in 2023.

IATA noted that the total capacity of airlines in the APAC region rose by 26 percent year-on-year, while the load factor increased to 81.6 percent. 

Moreover, Asia-Pacific airlines handled 31.7 percent of the passengers globally in May, followed by Europe and North America at 27.1 percent and 24.2 percent, respectively. 

Airlines from the Latin American region witnessed a passenger demand growth of 15.9 percent in May compared to the same month of the previous year. Moreover, the total capacity of these carriers also rose by 9.7 percent. 

Similarly, the load factor among airlines in Latin America hit 85.1 percent in May, the highest among all regions. 

On the other hand, African airlines saw a 14.1 percent year-on-year increase in demand, while the total capacity of these carriers surged by 8.2 percent during the same period. 

The load factor among African airlines also rose to 72.3 percent in May, representing an annual rise of 3.7 percentage points.

This was the fastest increase in load factor among all regions, although Africa still has the lowest load factor overall. 

Similarly, European airlines witnessed a passenger demand growth of 11.7 percent year-on-year in May. 

Additionally, the total capacity of these carriers rose by 11.3 percent in May compared to the year-ago period, while their load factor edged up by 0.03 percentage points to 84.7 percent. 

However, the passenger demand growth among North American carriers stood at 8.7 percent, the lowest among all regions. 

Even though the capacity of airlines in North America edged up by 7.7 percent year-on-year in May, the load factor declined by 1.2 percentage points to 84 percent during the same period. 

On the other hand, IATA revealed that domestic traffic globally increased by 4.7 percent in May compared to the same month in 2023, while the load factor rose by 3.8 percentage points to 84.5 percent. 

IATA also noted it is optimistic about the future growth of passenger demand globally.

“Overall, the increase in trip bookings made in May and the first half of June for travel during the second half of June and the whole of the month of July suggests that air traffic and demand in both domestic and international segments are expected to maintain a positive trend,” said the industry body. 

Saudi growth

Riyadh Air is set to take to the skies in 2025. File

Boosting Saudi Arabia’s aviation sector is a key pillar of the Kingdom’s Vision 2030 economic diversification plan, and in May a new roadmap was unveiled which will seek to boost the business travel sector.

Saudi Arabia’s aviation sector contributed $21 billion to the Kingdom’s gross domestic product in 2023 while generating an additional $32.2 billion in tourism receipts.

Speaking at the Future Aviation Forum in Riyadh in May, Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, said Saudi Arabia’s aviation sector in 2023 saw its number of passengers reach a record 112 million, up from 88 million in 2022, marking a 27 percent year-on-year increase.

As part of the plan to boost the sector further, the Kingdom is set to see its newest airline – the Public Investment Fund-backed Riyadh Air – take to the skies in 2025, with an aim of flying to 100 countries by 2030.