Saudi Arabia working on innovative solutions to ensure global food security

Saudi Arabia working on innovative solutions to ensure global food security
Topian’s launch concept Future to Table is an initiative to revolutionize food production through sustainable practices and emphasizes the development of new methods to nourish the world while minimizing environmental impact. (Supplied)
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Updated 18 February 2024
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Saudi Arabia working on innovative solutions to ensure global food security

Saudi Arabia working on innovative solutions to ensure global food security
  • Motamayor says new technologies urgently needed to feed humanity today and in the coming decades

Saudi Arabia is set to become a pioneer in food security as it develops systems and solutions that can be rolled out “across the planet,” according to a senior executive.

Speaking in an interview with Arab News, Juan Carlos Motamayor, CEO of food company Topian – the giga-project of NEOM’s newest subsidiary – highlighted that this includes introducing new technologies urgently needed to feed humanity today and in the coming decades.
His comments came in the light of a World Bank Report published in January 2024, which highlighted a “tenuous access to food for nearly one out of every three people.”
Reflecting on Topian’s role in combating this issue, Motamayor said: “We aim to pioneer new systems and innovative solutions that will benefit the people of Saudi Arabia and, when scaled up, benefit people across the planet facing similar challenges.”
He added: “This includes introducing new technologies urgently needed to feed humanity today and in the coming decades, such as controlled-environment production systems that can significantly reduce the water required for crop growth.”
Motamayor also underscored that Topian is dedicated to creating a sustainable future, particularly in the areas of agriculture, aquaculture, and food innovation.
Its launch concept Future to Table, which is an initiative to revolutionize food production through sustainable practices, emphasizes the development of new methods to nourish the world while minimizing environmental impact. “It embodies the concept of bringing high-quality, tastier food to the table with minimal environmental impact. This initiative represents a shift towards a ‘New Era of Food,’ focusing on innovative methods to feed the world’s population responsibly,” Motamayor said.
As the world grapples with the multifaceted challenges of rapid population growth, changing consumption patterns, climate change, and the depletion of natural resources, Saudi Arabia stands at a pivotal point in its pursuit of sustainable solutions.
“The Kingdom’s National Strategy for Agriculture 2030 aims to create a sustainable sector that achieves food and water security while advancing economic, social, and environmental developments,” Motamayor said.
He added: “We aim to pioneer new systems and innovative solutions that will benefit the people of Saudi Arabia and, when scaled up, benefit people across the planet facing similar challenges.”
Central to this endeavor is the introduction of urgently required technologies, such as controlled-environment production systems, which have the potential to substantially diminish water usage in crop cultivation.
“Moreover, by 2050, with an expected global population of almost 10 billion, traditional food production methods pose significant challenges,” the CEO said. Motamayor added: “The food industry is a major contributor to greenhouse gas emissions and excessive water usage, leading to an anticipated 40 percent water supply-demand gap.”
Additionally, food-related diseases like diabetes and heart disease are costing the world economy trillions of dollars.
Topian’s strategic initiatives exemplify a proactive approach to addressing global challenges while advancing Saudi Arabia’s quest for sustainable development.
By fostering innovation, embracing sustainability, and aligning with national priorities, Topian is poised to shape the future of food production in the Kingdom and beyond.
The company, launched with the support of the Ministry of Environment, Water and Agriculture in December, fully aligns with the goal of achieving Saudi Vision 2030, leading the Kingdom’s efforts to ensure food security, mitigate climate change and achieve net-zero emissions by 2060.
“This partnership focuses on developing and utilizing innovative and sustainable technologies that align with the Kingdom’s agricultural and food security goals, as outlined in the National Agriculture Strategy and the Food Security Strategy,” Motamayor said.
He added: “Last year, Topian marked a successful participation at Saudi Future Foods workshop hosted by King Abdullah University of Science and Technology and MEWA, where we explored strategic priorities for Saudi Arabia’s food security.”
Motamayor explained that the collaboration with KAUST focuses on advancing research and development efforts in innovative food production, positioning Saudi Arabia as a center for pioneering sustainable agricultural innovation.
Topian is also partnering with Tabuk University to provide the necessary training for professionals who will oversee these operations, and is working with the agri-business Cargill to support the sustainable expansion of the Saudi aquaculture sector.
“This partnership is particularly focused on achieving self-sufficiency in aquaculture protein demand by 2030 in an environmentally friendly manner,” Motamayor stated.
Moreover, a memorandum of understanding with Tabuk Fish company was signed on Feb. 8, focusing on expanding local aquaculture production and applying new-generation aquaculture technologies, thereby enhancing production capabilities and food security.
Topian also signed three strategic agreements on the sidelines of the Saudi International Marine Exhibition and Conference aimed at strengthening Saudi Arabia’s position as a global leader in sustainable aquaculture.
The first agreement with the National Livestock and Fisheries Development focuses on research and technological growth, sustainable aquaculture practices in the Red Sea, and establishing a national seafood market.
The second deal was reached with Pure Salmon, an Abu Dhabi-based aquaculture facilities company, to establish a facility at NEOM that will cover the full value chain of salmon production.
The development, which will be the first of its kind in the region, will address the high demand for salmon in the Kingdom and neighboring countries by delivering local products marked by freshness, quality, and taste.
Topian also entered into a partnership with the National Aquaculture Group with the goal of advancing the local aquaculture industry and expanding the distribution of NAQUA’s seafood products within the Saudi market.
“These partnerships are integral to Topian’s strategy of employing innovative solutions and technologies for sustainable food production, contributing to Saudi Arabia’s aspirations for a more secure and sustainable food system,” he commented.
He added: “Our goal is to seize the opportunity and go beyond, setting a global model for a world characterized by new systems and innovative solutions that will benefit the people of Saudi Arabia and will be scaled up to benefit people across the world.”


Saudi Arabia launches 7th round of ‘Sah’ savings product with 5.31% return

Saudi Arabia launches 7th round of ‘Sah’ savings product with 5.31% return
Updated 01 September 2024
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Saudi Arabia launches 7th round of ‘Sah’ savings product with 5.31% return

Saudi Arabia launches 7th round of ‘Sah’ savings product with 5.31% return

JEDDAH: Saudi Arabia has launched the seventh round of its subscription-based savings product, Sah, for September, offering a 5.31 percent return to promote financial stability and growth among citizens.

The issuance of these Shariah-compliant, government-backed sukuk began on Sunday and will continue until 3 p.m. on Sept. 3. Bonds will be distributed to investors on Sept. 10, as announced by the National Debt Management Center on X (formerly Twitter).

Subscriptions for Sah start at a minimum amount of SR1,000 ($266.66), which is the value of one bond. The maximum subscription limit is set at SR200,000, allowing individuals to purchase up to 200 bonds during this period.

Issued by the Ministry of Finance and organized by the NDMC, these fee-free savings products offer low-risk returns and are distributed through the digital channels of approved financial institutions.

Sah is the first government sukuk designed to enhance saving habits by encouraging Saudis to set aside a portion of their income regularly.

This initiative aligns with the Financial Sector Development Program, a key component of Saudi Vision 2030, which aims to increase the national savings rate from the current 6 percent to the international standard of 10 percent by 2030.

The Sah product is available to Saudi nationals aged 18 and above who open an account with SNB Capital, Aljazira Capital, or Alinma Investment. SAB Invest and Al Rajhi Bank are also eligible options.

The Sah bonds are issued monthly, with a one-year savings period and a fixed return. Profits are paid out at the bonds’ maturity date.

NDMC CEO Hani Al-Medaini mentioned in February that the sukuk aims to foster private sector collaboration. Future initiatives will include developing and launching tailored savings products for various individual categories through banks, fund managers, financial technology companies, and other institutions.

“I believe that issuing Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion in the Kingdom. It ensures access to financial products and services that meet people’s needs, such as having a bank account or savings product like Sah,” Al-Medaini said at the time.

The CEO also noted that the Sah initiative will not only encourage Saudis to save but will also positively impact the national economy, driving economic growth and raising national savings rates to international standards.

Last month, the NDMC completed its riyal-denominated sukuk issuance for August at SR6.018 billion, marking an 87.22 percent increase compared to July. This figure was the third highest this year, following SR8.82 billion issued in January and SR7.39 billion in April.

In July, Saudi Arabia concluded the issuance of Islamic financial instruments at SR3.21 billion, with amounts reaching SR4.4 billion and SR3.23 billion in June and May, respectively.


Omani rial’s effective exchange rate index rises 2.7% in first half of 2024

Omani rial’s effective exchange rate index rises 2.7% in first half of 2024
Updated 01 September 2024
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Omani rial’s effective exchange rate index rises 2.7% in first half of 2024

Omani rial’s effective exchange rate index rises 2.7% in first half of 2024
  • Local liquidity in Oman reached 24 billion rials in the first half of the year
  • Growth in liquidity suggests vibrant and expanding economic activity, with more funds circulating within the economy

RIYADH: The Effective Exchange Rate Index of the Omani rial reached 118.4 points in the first half of 2024, up 2.7 percent compared to the same period last year, according to new data. 

The EER Index is a measure used to evaluate the value of a country’s currency relative to a basket of other currencies. It provides a broader view of performance compared to a single exchange rate. The index typically includes a weighted average of multiple rates, reflecting a country’s overall trade competitiveness in the global market.

Preliminary statistics issued by the National Center for Statistics and Information indicated that local liquidity in Oman reached 24 billion rials in the first half of the year, reflecting a 12 percent surge compared to the same period a year prior, the Oman News Agency reported. 

The growth in liquidity suggests vibrant and expanding economic activity, with more funds circulating within the economy.

This comes as Oman’s public revenue saw an annual decline of 2 percent year on year in the second quarter of 2024, reaching $16.1 billion, the country’s news agency disclosed in August. 

Oman’s economic landscape is heavily influenced by its reliance on oil and gas revenues, making it vulnerable to global price fluctuations. 

The government has been actively working to diversify the economy and reduce dependence on hydrocarbons as part of its Vision 2040 plan. 

This strategic undertaking aims to foster economic diversification, encourage private sector growth, and enhance social welfare programs to ensure long-term resilience.

The NCSI data further revealed a 3.3 percent decrease in total issued currency, amounting to 1 billion rials by the end of June, compared to the same period the previous year.

Conversely, the narrow money supply, or M1—which includes total cash outside the banking system, as well as current accounts and demand deposits in local currency—increased by 16.3 percent during the same timeframe, reaching 6 billion rials compared to the same period in 2023.

Additionally, the Central Bank of Oman's total foreign assets rose by 6.2 percent in the first six months of the year, totaling 6 billion rials by the end of June 2024, up from the end of June 2023.

Total loans and financing at commercial banks and Islamic windows reached 31 billion rials by the end of June, reflecting a 3.8 percent increase compared to the same period a year ago.

Finally, the average interest rate on total loans rose to 5.581 percent by the end of June, marking a 2.7 percent increase from the corresponding period in 2023.


Qatar’s non-mining and quarrying activities rose 1.7% in Q4 2023: official data

Qatar’s non-mining and quarrying activities rose 1.7% in Q4 2023: official data
Updated 01 September 2024
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Qatar’s non-mining and quarrying activities rose 1.7% in Q4 2023: official data

Qatar’s non-mining and quarrying activities rose 1.7% in Q4 2023: official data
  • Mining and quarrying activities saw a 3.1% year-on-year drop in the fourth quarter,
  • Qatari economy contracted by 0.4% in the fourth quarter of 2023

RIYADH: Qatar’s non-mining and quarrying activities increased by 1.7 percent year-on-year in the fourth quarter of 2023 to 114.60 billion Qatari riyals ($31.39 billion), according to the latest data.

The country’s non-mining activities also witnessed a rise of 2.4 percent in the final three months of last year compared to the previous quarter of the same year, Qatar’s Planning and Statistics Authority revealed.

The official data comes days after a Standard Chartered report, which predicted that Qatar is on track to restore government revenues to pre-2014 oil price shock levels and double its economy by 2031. 

According to the analysis by the British multinational bank, the economic recovery is fueled by the country’s strategic positioning within the global energy market, its ongoing efforts for economic diversification, and the goals outlined in the nation’s Third Development Strategy. 

Qatar’s third phase of the National Development Strategy aims to transition the country into the next stage of development, entailing economic diversification by creating an investment and business-friendly environment.

The latest report by the PSA added that the Qatari economy contracted by 0.4 percent in the fourth quarter of 2023, compared to the same period of the previous year, due to a decline in mining and quarrying activities. 

The authority said that the country’s economy also witnessed a contraction of 0.6 percent in the fourth quarter compared to the previous three months. 

According to the report, Qatar’s mining and quarrying activities saw a 3.1 percent year-on-year drop in the fourth quarter, while it fell by 5.6 percent compared to the previous three months. 

The latest report by PSA said that the gross domestic product in the fourth quarter at constant prices stood at 176.78 billion riyals, representing a decline of 0.4 percent in contrast to the same period in 2022. 

When compared to the third quarter, the GDP at constant prices also witnessed a fall of 0.6 percent in the final three months of last year. 

An additional report released by the country’s National Planning Council in August said that Qatar’s foreign merchandise trade balance recorded a surplus of 20.1 billion riyals in July, compared to the same month in 2023. 

According to the study, Qatar’s total exports marked a 3.9 percent year-on-year rise in July to 30.2 billion riyals, while imports surged by 6.8 percent to 10.1 billion riyals during the same period. 


Egypt’s net foreign assets positive for third straight month in July

Egypt’s net foreign assets positive for third straight month in July
Updated 01 September 2024
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Egypt’s net foreign assets positive for third straight month in July

Egypt’s net foreign assets positive for third straight month in July
  • NFAs climbed to $13.27 billion Egyptian pounds at the end of July from $13.05 billion in June
  • Egypt had been using its NFAs to help prop up its currency since at least September 202

CAIRO: Egypt’s net foreign assets rose by $220 million in July, remaining positive for a third straight month after having been deeply negative for more than two years, central bank data showed.

NFAs climbed to 644.8 billion Egyptian pounds at the end of July from 626.6 billion in June. This works out to $13.27 billion at end-July and $13.05 billion at end-June, according to Reuters calculations based on the official central bank currency rate at the time.

Egypt had been using its NFAs, which include foreign assets at both the central bank and commercial banks, to help prop up its currency since at least September 2021. NFAs turned negative in February 2022, falling to minus $28.96 billion in January this year.

But in February, the government boosted its finances by selling the development rights to Ras El-Hekma on the Mediterranean coast for $35 billion and in March by signing an $8 billion financial support package with the International Monetary Fund.

It also sharply devalued its currency, triggering a flood of portfolio investments and remittances from workers abroad.

Foreign assets increased in July at both commercial banks and the central bank, while foreign liabilities edged up at both.


Saudia launches first direct flight to Medan, Indonesia

Saudia launches first direct flight to Medan, Indonesia
Updated 01 September 2024
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Saudia launches first direct flight to Medan, Indonesia

Saudia launches first direct flight to Medan, Indonesia
  • National carrier to offer four weekly services from Jeddah and Madinah

JEDDAH: Saudi Arabia’s national carrier, Saudia, has launched its first direct flight to Medan in North Sumatra, offering four weekly services from the western cities of Jeddah and Madinah. 

Marking the second destination in Indonesia after Jakarta to be served by the carrier, the announcement, which was made on Aug. 31., aligns with the airlines’ commitment to connecting the world with the Kingdom and advancing Saudi Vision 2030, particularly in enhancing services for pilgrims and visitors to the two holy mosques. 

The air carrier celebrated the inaugural flight to Medan with a ribbon-cutting ceremony at the Madinah-based Prince Mohammed bin Abdulaziz International Airport, in the presence of Indonesia’s ambassador to the Kingdom, Abdulaziz Ahmed, and the assistant vice president of KSA Sales at Saudia, Wail Basaffar, as well as relevant stakeholders. 

Established in 2021, Saudi Arabia’s Air Connectivity Program aims to enhance the country’s air routes to 250 destinations worldwide and transport 330 million passengers by 2030. The initiative also seeks to streamline market entry and promote expansion opportunities for flight travel partners in the Kingdom. 

By developing new routes, the ACP strives to position the nation as a global leader in tourism air connectivity.

In its statement, Saudia said it offers a range of services designed to elevate the guest experience, including digital platforms allowing users to plan their journeys, complete necessary procedures, and access after-sales support. 

It added that it provides on-site services at airports to expedite processes and ensure a seamless travel experience. 

With a fleet of 143 aircraft, the company’s international operations are continuously evolving to expand its market share and set new benchmarks in guest transportation, catering to tourists, visitors, and pilgrims. 

The air carrier emphasized that it is committed to increasing the volume of transit traffic between continents via the Kingdom, adding that this is a key pillar of its strategic vision and new era. 

Despite June being a peak travel month due to the Hajj pilgrimage and summer travel season, the airline topped the global rankings for the month with an 88.22 percent on-time arrival rate, according to new data from the independent aviation tracking site Cirium. 

Saudia also recorded an on-time departure rate of 88.73 percent, while operating 16,133 flights across its network of over 100 destinations on four continents. 

In May, Saudia Group signed an order for an additional 105 A320neo family planes, marking the largest aircraft deal with Airbus in the Kingdom’s history. 

The $19 billion deal, announced at the Future Aviation Forum in Riyadh by Ibrahim Al-Omar, the group’s director general, includes A320neo and A321neo models. These aircraft will be distributed between Saudia and flyadeal, the group’s low-cost carrier. 

Saudia will acquire 54 A321neo aircraft, while flyadeal will receive 12 A320neo and 39 A321neo models. The group is set to receive the first airliner in the first quarter of 2026.