AlUla’s battery-powered tramway, a pivotal step in green transportation

Special AlUla’s battery-powered tramway, a pivotal step in green transportation
The vehicles used in this project differ from their traditional counterparts by operating on rechargeable batteries instead of overhead electrical lines which allows for reducing the need for extensive infrastructure. Supplied
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Updated 12 February 2024
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AlUla’s battery-powered tramway, a pivotal step in green transportation

AlUla’s battery-powered tramway, a pivotal step in green transportation
  • Alstom KSA MD: Innovative technology will be used to integrate tramway into the cultural fabric of AlUla
  • Spanning 22.4 km with 17 stations, the network is the world’s longest battery-powered, catenary-free tramway line

RIYADH: AlUla’s battery-powered tramway is a testament to Saudi Arabia’s journey toward a sustainable, innovative transportation system, insists a top official from the company behind its design.

Speaking to Arab News, Mohammed Khalil, managing director of Alstom KSA, said the project — which spans 22.4 km with 17 stations — marks the world’s longest battery-powered, catenary-free tramway line.

He added that this demonstrates a key focus on carbon emission reduction and green transportation.

“As part of Saudi Vision 2030, (the tramway) supports the nation’s commitment to environmental stewardship,” said Khalil, adding: “This innovative transportation system plays a key role in reducing carbon emissions and advancing green technology.

“Battery-powered trams that rely on electricity sourced from renewable energy, lead to a decrease in greenhouse gas emissions, reducing reliance on fossil fuels.”




The investment in local maintenance expertise has allowed Alstom to build a strong foundation within the region. (Supplied)

The vehicles used in this project differ from their traditional counterparts by operating on rechargeable batteries instead of overhead electrical lines.

This allows for reducing the need for extensive infrastructure, allowing the system to remain environmentally conscious while simultaneously leading to a quieter, more aesthetically pleasing urban environment.

In AlUla, a destination that is home to some UNESCO World Heritage sites and whose identity hinges on culture and heritage reservation, this feature becomes especially valuable.

Alstom, a global leader in smart and sustainable mobility, will employ innovative technology to integrate the tramway into the cultural fabric of AlUla, the MD said.

The technology, known as Citadis B, allows the vehicle and its charging system to offer fast, ground-based charging, thus making it both efficient and less visually intrusive.

He added that the project does not only contribute to environmental sustainability, it also contributes to the economic and cultural sustainability of AlUla.

“Boosting tourism and stimulating local businesses, it aligns with Saudi Arabia’s goal of diversifying its economy beyond oil,” said Khalil.

The tramway is designed to respect the region’s rich cultural heritage, ensuring a development that preserves historical significance, Khalil affirmed, further noting that this balance of economic growth and environmental responsibility demonstrates the key sustainability values that are central to Saudi’s Vision 2030.




Mohamed Khalil

In order to integrate these values into their execution, blending cultural and historic elements into the project’s design and functionality, the company will utilize the traditional aesthetics of the historic Hejaz railway.

This transport network was a narrow-gauge railway that ran from Damascus to Medina, through the Hejaz region of modern-day Saudi Arabia, with a branch line to Haifa on the Mediterranean Sea.

Thus, by implementing elements of its design into the modern tram, the design will serve as a bridge between AlUla’s rich past and its dynamic future.

The executive outlined that this will be further achieved through a design that mirrors the local architectural style, ensuring the trams complement the historical districts they connect, with each tram being “especially adapted to reflect the unique character and needs of the region.”

He added: “This includes external designs that blend with the local surroundings and interior adaptations that enhance the passenger experience while offering a glimpse into the region’s heritage.”

Furthermore, Khalil said that features like the open belvedere, a low-floor design for easy boarding, climate-sensitive air conditioning, and dynamic onboard journey information systems are all tailored to provide an immersive travel experience.

The custom trams will be manufactured across Alstom’s production sites in France, including La Rochelle for both design and construction.

The company, which has been a player in Saudi Arabia’s transportation sector for over 70 years, has supported the Haramain high-speed rail line between Makkah and Medina.

It also provided the automated people-mover system to Jeddah’s King Abdulaziz International Airport, which has been in passenger service since 2020, for which the maintenance has been carried out by Alstom since 2022.

According to the director, the company takes “great pride” in its ongoing local presence within the Kingdom, adding that its vision is fundamentally aligned with supporting the Middle East in its “ambitions to become a prominent business hub, achieved by reshaping mobility and introducing sustainable transport solutions of tomorrow.”

HIGHLIGHT

The tramway is designed to respect the region’s rich cultural heritage, ensuring a development that preserves historical significance, Khalil affirmed, further noting that this balance of economic growth and environmental responsibility.

As part of the ongoing transport solutions, Khalil cited the recent demonstration of the hydrogen-powered Coradia iLint train in Riyadh, adding that it marks a significant milestone in green transportation initiatives not only in Saudi Arabia but also in the Middle East and Africa.

“This initiative, part of the MoU signed between Alstom and SAR (Saudi Arabia Railways) at InnoTrans in September 2022, showcases the first introduction of a hydrogen-powered train in the region,” he said.

The Coradia iLint, notable for being the world's first passenger train powered by hydrogen fuel cells, underwent a trial run in November 2023, covering 34 kilometers on Riyadh's East Network.

The train was deemed “revolutionary” in its eco-friendly approach by the director, due to its ability to produce electrical energy for propulsion without any direct carbon dioxide emissions.

Khalil said that the demonstration extends beyond the “technological marvel” of the train itself, as it aligns with Saudi Arabia’s comprehensive sustainability goals and Vision 2030 objectives.

“As a country committed to the Saudi Green Initiative, this move reinforces its dedication to an environmentally sustainable future,” Khalil affirmed

As countries in the region continue to strive towards ambitious net-zero targets, the company is steadfast in providing sustainable mobility across the middle.

Their investment in local maintenance expertise has allowed Alstom to build a strong foundation within the region, according to Khalil, an effort that he noted they are confident “will contribute to the success of future projects such as the AlUla tramway.”

Under the AlUla tramway project, Alstom’s Services teams will leverage itinerant workshops to provide the local maintenance team with temporary access to special tools and equipment required for overhauls.

Furthermore, the company will make use of the local capabilities that they have built thus far. Brake overhaul specialists from Alstom’s Pinto site in Spain will organize training sessions for the team in AlUla, sharing their expertise and developing local capabilities.


Inter Milan secures investment license to establish academies in Saudi Arabia

Inter Milan secures investment license to establish academies in Saudi Arabia
Updated 17 October 2024
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Inter Milan secures investment license to establish academies in Saudi Arabia

Inter Milan secures investment license to establish academies in Saudi Arabia

RIYADH: The Saudi sports sector is set for further development with Inter Milan securing an investment license from the Kingdom’s Ministry of Investment, to establish academies across the country.  

This initiative aims to enhance the local sports landscape and promote talent development, according to an official statement. 

The license, awarded in collaboration with the Ministry of Sports, reflects a commitment to advancing sports culture in Saudi Arabia while facilitating the transfer of global expertise to the region.  

This move aligns with the Ministry of Investment’s objectives to regulate, develop, and attract both domestic and foreign investments.

The Saudi sports market is projected to grow at an annual rate of 3.25 percent from 2024 to 2029, reaching $318.30 million by 2029, according to Statista, an online data platform.  

In a post on its official X handle, the Ministry of Sports stated: “Granting the investment license to the Inter Milan club represents a pioneering step toward transferring global expertise through opening sports academies in the Kingdom. Together toward creating a promising sports generation and a bright sports future.” 

The Italian club will receive support from the Saudi Ministry of Investment to enhance its brand presence in the Middle East and expand its fanbase.     

“We’re extremely proud to be the first international football club to obtain the MISA license, which will allow us to collaborate with local businesses to bring our experience and expertise in sports development to the country, contributing to achieving the targets set out in Vision 2030,” said Alessandro Antonello, CEO Corporate FC Internazionale Milano.   

“Through this license, the club is committed to creating value for Saudi Arabia by supporting the development of its sporting sector and promoting the involvement of local businesses as part of our global network,” he added.  

The club stated that the establishment of Inter Academies across the country, support for youth and women’s football, and participation of the club’s legends in local events will strengthen ties with the Saudi community and promote football values.   

“Since we first played here in Riyadh, we’ve been struck by the passion that young Saudis have for our club, and we look forward to engaging them even more in the Nerazzurri world,” said Javier Zanetti, vice president of FC Internazionale.   

The term “Nerazzurri” commonly refers to the supporters and players of the club.   

“At the heart of what we do at Inter is developing young players, both in footballing terms and, above all, as people. We’re ready to work hard to export our expertise to Saudi Arabia beyond the playing field by impacting social and cultural areas too,” Zanetti added. 

Inter Milan’s enhanced presence builds on its participation in the Italian Super Cup, held in Saudi Arabia over the past two years, significantly boosting the club’s visibility and fan engagement in the region. 


Closing Bell: Saudi main index closes in red at 11,907

Closing Bell: Saudi main index closes in red at 11,907
Updated 17 October 2024
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Closing Bell: Saudi main index closes in red at 11,907

Closing Bell: Saudi main index closes in red at 11,907
  • MSCI Tadawul Index decreased by 16.87 points, or 1.12%, to close at 1,490.22
  • Parallel market Nomu surged, gaining 227.15 points, or 0.87%, to close at 26,205.65

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 131.24 points, or 1.09 percent, to close at 11,907.43. 

The total trading turnover of the benchmark index was SR7.01 billion ($1.86 billion), as 28 of the listed stocks advanced, while 201 retreated. 

The MSCI Tadawul Index decreased by 16.87 points, or 1.12 percent, to close at 1,490.22. 

The Kingdom’s parallel market Nomu surged, gaining 227.15 points, or 0.87 percent, to close at 26,205.65. This comes as 46 of the listed stocks advanced, while 27 retreated. 

The best-performing stock of the day was Red Sea International Co., with its share price surging by 4.30 percent to SR63. 

Other top performers included Saudi Industrial Development Co., which saw its share price rise by 2.91 percent to SR30.10, and The Co. for Cooperative Insurance, which saw a 2.80 percent increase to SR147. 

United Wire Factories Co. and Alkhorayef Water and Power Technologies Co. also saw a positive change at 2.64 percent and 2.34 percent to SR31.15 and SR166.40, respectively. 

The worst performer of the day was Al-Baha Investment and Development Co., whose share price fell 6.90 percent to SR0.27. 

ARTEX Industrial Investment Co. and Anaam International Holding Group also saw declines, with their shares dropping by 4.92 percent and 4.48 percent to SR17 and SR1.28, respectively. 

Ataa Educational Co. and Abdullah Al Othaim Markets Co. also saw negative changes at 4.46 percent and 4.32 percent to SR79.30 and SR11.96, respectively. 

On the announcements front, Value Capital, acting as the financial adviser and offering manager for the potential initial public offering of Shalfa Facilities Management Co., has announced the offering price of the company’s shares at SR61 per share. 

According to a Tadawul statement, the offering consists of 630,000 ordinary shares, representing 15 percent of the company’s issued capital, which will be sold by existing shareholders. 

All ordinary shares, representing 100 percent of the offering, will be allocated to qualified investors, the statement said. 

The minimum number of shares each qualified investor can subscribe to is 10, while the maximum is 209,990. 

The subscription period for qualified investors will begin on Oct. 20 and conclude on Oct. 28. 


Serbia secures $205m loan from Saudi Fund for Development

Serbia secures $205m loan from Saudi Fund for Development
Updated 17 October 2024
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Serbia secures $205m loan from Saudi Fund for Development

Serbia secures $205m loan from Saudi Fund for Development

JEDDAH: Serbia has signed a $205 million loan agreement with the Saudi Fund for Development to enhance its agriculture, education, and energy sectors.

Three deals were signed in Belgrade by Sultan Al-Marshad, CEO of SFD, and Sinisa Mali, the European country’s deputy prime minister and minister of finance, in the presence of Ali Al-Dossary, Saudi Arabia’s deputy ambassador to neighbouring Bosnia and Herzegovina, according to a statement by the fund.

Mali expressed his pleasure to sign the agreements with SFD, which, he said is the first concrete step after last year’s signing of a memorandum of understanding to develop and invest in capital projects.

“We are grateful for the support. The projects for which this money is intended will contribute to the creation of new jobs, strengthening of our economy, and better positioning Serbia in the world scientific community,” he said.

Mali added that the agreements will strengthen the long-term partnership between Serbia and Saudi Arabia and aid in implementing and developing significant projects in his country.

The three projects include $75 million funding for the Strengthen Irrigation Infrastructure in Different Areas Project, $65 million for the Construction of the Bio4 Campus in Belgrade Project, and $65 million for the Development of Transmission System Operator (Phase 1) Project, according to the release. 

The first project aims to enhance irrigation systems and improve water management in key agricultural areas by constructing new water pumping stations, rehabilitating existing canals, and developing a modern irrigation network over 230 km. It will target villages like Novi Slankamen in the north and Jasenica Kapi in the northeast and seek to increase agricultural productivity and ensure efficient water distribution during drought conditions.

The second project will finance the construction of the Bio4 Campus in the Serbian capital and will serve as an innovative scientific research center dedicated to biotechnologies. The campus will feature six faculties, nine scientific institutes, and advanced laboratories, including a biosafety level 3 lab at the University of Belgrade.

Designed to foster interdisciplinary innovation and collaboration, the center aims to unite researchers, scientists, and professionals in fields such as biology, medicine, and wastewater research.

The third will expand Serbia’s energy infrastructure by building a new 400 kV transmission line and upgrading existing substations that will help enhance the reliability of Serbia’s power supply and integrate the country into the European electricity market through the Trans-Balkan Electricity Corridor.

Al-Marshad said that supporting sustainable development through strategic funding in infrastructure and education is central to his organization’s mission.

“This partnership with Serbia underscores our commitment to fostering innovation, enhancing agricultural productivity, and improving energy security in line with the UN Sustainable Development Goals. The projects we are funding will help create lasting benefits for the Serbian people and contribute to their socioeconomic development,” he said.

In November 2022, Al-Marshad received Mali in Saudi Arabia, where the Serbian official was briefed on SFD’s development initiatives in emerging nations, according to the Saudi Press Agency. They discussed key opportunities in Serbia’s development sector.

Mali expressed appreciation for the Kingdom’s efforts, through SFD, to provide development support via various projects and programs in developing countries, which contribute to achieving sustainable development goals. He also highlighted Serbia’s interest in fostering development opportunities to strengthen bilateral relations in the sector.

The fund has recently celebrated 50 years of advancing global development, with recent expansions into 11 new countries, including Serbia.

Saudi Arabia’s official development arm has financed more than 800 projects in over 100 countries, totaling $20 billion.


Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 

Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 
Updated 17 October 2024
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Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 

Saudi Arabia’s crude production climbs 0.83% to 8.99m bpd: JODI 

RIYADH: Saudi Arabia’s crude oil production increased to 8.99 million barrels per day in August, marking a 0.83 percent rise compared to the same month last year, according to the latest data from the Joint Organizations Data Initiative.

The report also indicated that crude exports climbed to 5.67 million bpd, a 1.56 percent annual increase. Domestic petroleum demand saw a year-on-year rise of 117,000 bpd, reaching 2.89 million bpd.

During a virtual OPEC+ meeting on Sept. 5, member countries reiterated their commitment to previously announced voluntary production cuts from April and November 2023, underscoring the importance of adhering to these agreements.

OPEC+ has implemented a series of output reductions since late 2022 to stabilize the market, with most cuts set to remain until the end of 2025.

Initially, OPEC+ planned to ease the latest round of cuts—totaling 2.2 million bpd—starting in October, but this decision was postponed by two months due to falling oil prices.

OPEC’s recent report noted a decline in production for September, attributed to unrest in Libya and cuts in Iraq, resulting in an overall OPEC+ output of 40.1 million bpd, down by 557,000 bpd from August.

JODI data also highlighted a 5 percent drop in refinery crude exports to 1.25 million bpd during the period; however, this represented an 11 percent increase, or 126,000 bpd, compared to July.

The primary products included processed crude used for diesel, motor gasoline, aviation gasoline, and fuel oil. Diesel exports constituted 43 percent of refined product shipments, while motor and aviation gasoline accounted for 25 percent, and fuel oil made up 7 percent. Notably, gas diesel shipments grew by 10 percent, reaching 537,000 bpd in August.

In July, Saudi Arabia’s refinery output reached 2.77 million bpd, up 8 percent year on year, with diesel making up 44 percent of total refined products, followed by motor and aviation gasoline at 25 percent, and fuel oil at 16 percent.

OPEC revised its global oil consumption forecast for 2024 in October, reducing expected growth from 2.03 million bpd to 1.93 million bpd. The 2025 forecast was also lowered to 1.64 million bpd, marking the third consecutive downward adjustment due to new data and tempered regional expectations.

Despite these revisions, OPEC anticipates strong demand, largely driven by air travel, road mobility, and industrial activity. Their projections exceed those of the International Energy Agency, which expects slower demand growth due to China’s economic slowdown and the rise of electric vehicles.

OPEC forecasts global oil demand will reach 104.1 million bpd in 2024 and 105.8 million bpd in 2025, with long-term crude demand expected to hit 112.3 million bpd by 2029.

Despite the growth in electric vehicles, traditional combustion-engine vehicles are anticipated to dominate the global fleet until 2050, supporting long-term oil demand.

Direct crude usage

Saudi Arabia’s direct crude oil burn increased by 88,000 bpd annually to 814,000 bpd, representing a 12 percent rise year on year and a 5.9 percent increase from July.

This surge is likely driven by rising energy demands linked to population growth and the influx of newcomers, underscoring increased domestic consumption and development in residential and commercial sectors.

By 2030, the Saudi government aims to phase out the use of crude oil, fuel oil, and diesel in power generation, replacing them with natural gas and renewable energy sources.

This shift is part of the Kingdom’s Vision 2030 plan to diversify its energy mix and reduce oil dependence, both domestically and in international markets.

As Saudi Arabia progresses toward this goal, natural gas demand is expected to rise significantly, leading to increased investments in the natural gas supply chain, including exploration and infrastructure development.

This transition aims to reduce carbon emissions and free up more crude oil for export, enhancing Saudi Arabia's position in global energy markets.

Furthermore, the push for renewable energy projects, such as solar and wind, is expected to attract investment, creating new opportunities in the energy sector and contributing to the Kingdom’s long-term sustainability goals.

This transition aligns with global trends toward cleaner energy, positioning Saudi Arabia as a key player in the evolving energy landscape while ensuring energy security and economic diversification.


Turkiye’s central bank holds rate at 50%, warns on inflation

Turkiye’s central bank holds rate at 50%, warns on inflation
Updated 17 October 2024
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Turkiye’s central bank holds rate at 50%, warns on inflation

Turkiye’s central bank holds rate at 50%, warns on inflation
  • Analysts expected the central bank to wait until December or January to begin its anticipated easing cycle
  • Last time the bank raised its main policy rate was in March, when it hiked by 500 basis points

ISTANBUL: Turkiye’s central bank held interest rates at 50 percent on Thursday as expected but cautioned that recent data had lifted inflation uncertainty, in a hawkish signal ahead of an expected easing cycle in coming months.
“In September, the underlying trend of inflation posted a slight increase,” the bank’s policy committee said, adding: “The uncertainty regarding the pace of improvement in inflation has increased in light of incoming data.”
Analysts said the message could reinforce the view that the bank will wait until around January to ease monetary policy, after a more than year-long effort to slay years of soaring inflation.
The last time the bank raised its main policy rate was in March, when it hiked by 500 basis points to round off an aggressive tightening cycle that started in June last year.
Since then, it has kept the one-week repo rate on hold. In a change of messaging last month, it began setting the stage for a rate cut by dropping a reference to potential further tightening.
Yet after monthly inflation was higher than expected at nearly 3 percent in September, a Reuters poll showed analysts expected the bank to wait until December or January to begin its anticipated easing cycle.
Nicholas Farr, economist at Capital Economics, said the bank signalled that the “slow pace of disinflation will prevent monetary easing this year.”
“It seems clear that the (central bank) – like us – doesn’t think the conditions are in place for a monetary easing cycle to start very soon.”
Annual inflation has dropped to 49.4 percent — below the policy rate for the first time in this cycle — from a peak of 75 percent in May.
The central bank is closely watching the monthly rate for signals of when to begin easing, though it has only dipped below 2 percent once this year, in June. It is also watching for high household inflation expectations to ease toward its targets.