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Retail sector aiming for $122bn contribution to Saudi GDP by the end of 2024: minister 

Retail sector aiming for $122bn contribution to Saudi GDP by the end of 2024: minister 
Majed Al-Hogail, the minister of municipal and rural affairs and housing, speaking at the 10th Retail Leaders Circle MENA Summit in Riyadh. X/@saudimomrah
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Updated 20 February 2024
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Retail sector aiming for $122bn contribution to Saudi GDP by the end of 2024: minister 

Retail sector aiming for $122bn contribution to Saudi GDP by the end of 2024: minister 
Updated 20 February 2024
ARAB NEWS 
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RIYADH: Saudi Arabia’s retail sector contributes 23 percent to the non-oil economy, and is aiming to exceed SR460 billion ($122.6 billion) by the end of 2024, according to a top official. 

Majed Al-Hogail, the minister of municipal and rural affairs and housing, highlighted the pivotal role of the industry in the Kingdom’s economic landscape at the 10th Retail Leaders Circle MENA Summit in Riyadh. 

He said that this area holds utmost importance as it serves as a key driver in the economy and local gross domestic product, according to a post by the ministry on X. 

Speaking at the launching of the summit themed “Fearless Innovation: Charting the Next Frontiers,” Al-Hogail emphasized the sector’s multifaceted impact saying: “The retail sector is contributing 23 percent of the non-oil GDP. We seek to grow the retail sector to more than SR460 billion by the end of the year 2024.” 

He added: “In our plans for the retail sector, we focused on restaurants, cafes, entertainment, and public areas. We worked on developing legislation, regulations, and requirements through fruitful integration and effective partnership with the private sector.” 

Al-Hogail revealed that the occupancy rates in the retail sector in Riyadh and Jeddah reached 88 percent in 2023, and efforts have resulted in issuing no fewer than 70,000 licenses annually for the sector. 

Localizing jobs is among the priorities, according to the minister. He stated, “We are working to provide diverse employment opportunities,” adding, “We are working to incentivize private sector establishments and provide an attractive environment for Saudis to work.” 

In a major announcement during the summit, Panos Lenardos, chairman of the Retail Leaders Circle, shared plans for the summit’s evolution into a government forum in the upcoming year, with Riyadh set to host the event. 

The 10th-anniversary edition of the summit saw a confluence of global CEOs, senior policymakers, innovators, and investors from more than 40 countries. They represented diverse industries, including retail, real estate, tourism, and technology, driving discussions and sharing their perspectives and experiences. 

The discussion themes included the new growth agenda; the lifestyle destinations frontiers; and AI and tech: powering progress. Other highlighted topics were leadership in the new normal; purpose, profit, and conscious consumerism. Another focus was on future disruption catalysts. 

Topics: Majed Al-Hogail retail Retail Leaders Circle MENA Summit

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Saudia teams up with Air France-KLM to strengthen local MRO services

Saudia teams up with Air France-KLM to strengthen local MRO services
Updated 59 sec ago
MOHAMMED AL-KINANI
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Saudia teams up with Air France-KLM to strengthen local MRO services

Saudia teams up with Air France-KLM to strengthen local MRO services
Updated 59 sec ago
MOHAMMED AL-KINANI

JEDDAH: The Kingdom’s national carrier, Saudia, has entered into a strategic partnership with Air France-KLM to expand and localize its maintenance, repair, and overhaul capabilities. This collaboration aims to enhance the Kingdom’s aviation infrastructure and contribute to its economic growth.

The agreement was formalized during a signing ceremony on Dec. 3, which was attended by French President Emmanuel Macron, Saudi Arabian Airlines Corp. Chairman Saleh Al-Jasser, Saudia Group Director General Ibrahim Al-Omar, and several other dignitaries and ministers, as per a statement from Saudia.

Al-Omar emphasized that the partnership is in line with Saudi Arabia’s Aviation Strategy, led by the General Authority of Civil Aviation, and demonstrates a shared commitment to advancing the country's aviation sector.

Benjamin Smith, CEO of Air France-KLM, highlighted the long-standing relationship between Saudia and the Air France-KLM Group, noting: “In the context of Saudi Arabia’s rapid development, we see great mutual benefit in expanding our commercial cooperation and combining our expertise, especially in the strategic area of MRO services.”

He added that Air France-KLM Engineering and Maintenance, a leader in the field, is well-positioned to deepen its collaboration with Saudia to unlock additional opportunities both in Saudi Arabia and across the region.

This agreement is also part of Saudia’s broader effort to increase local content and develop local talent and capabilities in aviation, aligning with Saudi Vision 2030’s objectives to build a strong national economy.

The deal supports Saudi Arabia’s National Aviation Strategy, which aims to position the Kingdom as a global leader in tourism, business travel, and logistics. Key goals include enhancing interconnectivity, expanding the market share of national carriers, and improving airport infrastructure.

The agreement was signed by Fahd Cynndy, managing director of Saudia Technic, and Anne Brachet, executive vice president of engineering and maintenance at Air France-KLM.

The partnership marks a significant milestone in Saudia’s efforts to enhance its technical operations within the Kingdom and solidify both parties’ commitment to mutual growth in the aviation sector.

Under the terms of the agreement, Saudia will take on the assembly and disassembly of GE90 engines, which are used in Boeing 777 aircraft. Saudia will also allocate at least 50 percent of GE90 work orders to Air France-KLM in exchange for the localization of these processes.

Additionally, the partnership explores the creation of a joint venture to support GEnx engines, which power Boeing 787 aircraft. This will further bolster Saudia’s growing MRO capabilities, which already include servicing CFM LEAP-1A engines used on the Airbus A320neo family of aircraft.

On the commercial front, the agreement also focuses on strengthening the codeshare relationship between Saudia and Air France-KLM, both members of the SkyTeam alliance. This will allow for expanded reciprocal codesharing across a broader range of domestic and international routes, improving connectivity and increasing flight frequency.

Coinciding with this announcement, Air France-KLM revealed plans to expand its presence in Saudi Arabia. The group will launch a new route between Paris-Charles de Gaulle and Riyadh in the summer of 2025, operated by Air France. This follows a recent agreement between Air France-KLM and Saudi Arabia’s Air Connectivity Program, signed in the presence of Deputy Minister of Tourism for International Affairs Sultan Al-Musallam.

In addition to the new Paris-Riyadh route, Transavia, the low-cost carrier of Air France-KLM, will begin flights to Jeddah from Paris-Orly and Lyon. With these new services, all three airlines in the Air France-KLM Group — Air France, KLM, and Transavia — will operate in Saudi Arabia. KLM currently serves Riyadh and Dammam from its hub at Amsterdam Schiphol.

Benjamin Smith expressed his excitement about the expansion, saying, “Saudi Arabia is rapidly becoming a world-class destination and a key gateway. We are thrilled to support the Kingdom’s growth by expanding our network and strengthening our existing routes.”

Majid Khan, CEO of the Saudi Air Connectivity Program, welcomed the addition of Air France services to the Kingdom, emphasizing that this move is part of broader efforts to enhance air connectivity to vital international destinations and streamline travel to Saudi Arabia.

“Air connectivity plays a critical role in driving tourism development. The new direct flights between Riyadh and Paris, set to launch in summer 2025, will facilitate a stronger flow of tourism between our two nations,” Khan said.

Topics: Saudia aviation

Saudi Arabia positioned to lead global hydrogen production, say experts

Saudi Arabia positioned to lead global hydrogen production, say experts
Updated 17 min 52 sec ago
Nour El-Shaeri
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Saudi Arabia positioned to lead global hydrogen production, say experts

Saudi Arabia positioned to lead global hydrogen production, say experts
Updated 17 min 52 sec ago
Nour El-Shaeri

RIYADH: Saudi Arabia is poised to become one of the world’s leading producers of hydrogen, capitalizing on its abundant renewable energy resources and robust infrastructure, experts say.

At the Saudi Green Initiative Forum in Riyadh, Abdulrahman Al-Fageeh, CEO and executive board member of SABIC, outlined the Kingdom’s unique advantages in the hydrogen sector.

“Saudi Arabia, by the way, as a country, is going to be the best competitive in terms of the economics of producing hydrogen from any source by having the solar, by having the wind and also by having the gray hydrogen that we have in our systems,” he said. 

Al-Fageeh underscored that the Kingdom’s hydrogen ambitions would depend on close collaboration across the entire value chain, as well as strong regulatory support.

“Collaboration across the value chain is key, and regulators will play a crucial role,” he emphasized, highlighting the importance of coordinated efforts to scale production and integrate hydrogen into fuel systems and broader decarbonization strategies.

As part of its hydrogen strategy, SABIC, in collaboration with its parent company Aramco, plans to produce low-carbon ammonia.

“We have committed to advancing our decarbonization efforts using hydrogen and will collaborate with Aramco to produce low-carbon ammonia, which will play an important role in the fuel systems of the future,” Al-Fageeh added.

Sanjiv Lamba, CEO of Linde, also spoke positively about Saudi Arabia’s potential, describing hydrogen as a vital link in the global energy transition.

“Low-carbon hydrogen offers a cost-effective, scalable solution with mature technologies today, ensuring safe and reliable hydrogen production,” he said, adding that Saudi Arabia is particularly well-positioned to produce green hydrogen at globally competitive prices.

Kholoud Al-Otaibi, a clean hydrogen analyst at the Saudi Ministry of Energy, highlighted the Kingdom’s ongoing progress in building the necessary infrastructure for hydrogen production and export.

“The Kingdom is already taking deliberate steps to develop the protection and capacity, as well as the export infrastructure needed for hydrogen,” she said, underscoring the potential of hydrogen to support a sustainable energy future.

Despite the optimism, panelists cautioned that hydrogen alone will not solve global decarbonization challenges.

“It is one of many solutions. To address this pragmatically, we need to answer three key questions: where, what, and how,” said Al-Fageeh.

Francois Jackow, CEO of Air Liquide, noted that the energy transition is at a critical “scale-up phase,” requiring substantial investment and industrial innovation to unlock its full potential.

The forum also tackled broader challenges in climate finance, with experts stressing the urgent need to bridge the funding gap for climate adaptation, particularly in low- and middle-income countries.

Mohammed Ayoub, lead climate finance negotiator at the Saudi Ministry of Energy, warned that macroeconomic factors, such as unsustainable debt levels and foreign exchange risks, are restricting access to capital for developing nations.

“This is driving up the cost of capital due to lower sovereign ratings,” Ayoub said, explaining that it limits critical investments in climate adaptation measures that save lives and improve quality of life in vulnerable regions.

Florent Baarsch, founder and CEO of finres, highlighted the scale of the shortfall, pointing out that current overseas development assistance stands at $220 billion annually, far below the $300 billion to $500 billion needed each year for climate adaptation.

“Even if we allocated the entire ODA to adaptation, it would still fall short,” Baarsch said.

Rachel Kyte, UK special representative on climate, emphasized that adaptation finance must prioritize the most vulnerable populations and combine public and private funding to meet the scale of the challenge.

Topics: COP16 Green & Blue Saudi Green Initiative

Saudi Arabia advances space industry with acquisition of Airbus’ UP42

Saudi Arabia advances space industry with acquisition of Airbus’ UP42
Updated 52 min 48 sec ago
MOHAMMED AL-KINANI
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Saudi Arabia advances space industry with acquisition of Airbus’ UP42

Saudi Arabia advances space industry with acquisition of Airbus’ UP42
Updated 52 min 48 sec ago
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Neo Space Group has finalized an agreement to acquire Airbus’ UP42 platform, a move that marks a key milestone in the Kingdom’s efforts to achieve its Vision 2030 goals.

On Dec. 3, NSG, a company owned by the Public Investment Fund and Saudi Arabia’s leading commercial space services provider, announced that it had reached a definitive agreement with Airbus Defence and Space to acquire the next-generation Earth observation digital platform.

The deal is subject to customary closing conditions, including regulatory approvals, as stated in a company release.

NSG CEO Martijn Blanken said: “By integrating the UP42 platform into the Saudi ecosystem, we are positioning NSG to deliver cutting-edge geospatial insights for one of the world’s fastest-growing economies.”

This acquisition underscores NSG’s strategic role in advancing Earth observation services in Saudi Arabia, following the permit granted in July by the Communications, Space, and Technology Commission to operate the platform within the Kingdom.

Aligned with PIF’s broader strategy, the deal aims to unlock the potential of emerging sectors in Saudi Arabia, boost the country’s non-oil revenues, and support the diversification of its economy in line with Vision 2030.

NSG emphasized that UP42’s platform will enable customers to tackle real-world geospatial challenges, offering valuable solutions across industries such as agriculture, urban planning, real estate, infrastructure monitoring, and disaster management.

The company also reiterated its commitment to fostering local expertise and strengthening the Kingdom’s position within the global space economy, with the goal of supporting the diversification of the Saudi economy and advancing Vision 2030.

Blanken further highlighted the significance of the acquisition: “This is a pivotal move in advancing our vision to drive both local and global innovation in the geospatial sector while contributing to the growth of Saudi Arabia’s space economy.”

Launched in 2019 by Airbus in Germany, UP42 is a leader in simplifying access to and deriving insights from geospatial data through its cloud-based platform. It is set to become an integral part of NSG’s growing geospatial division, which already includes the Saudi-based geospatial services provider, TAQNIA ETS.

UP42’s digital platform offers customers access to data and analytics from more than 80 of the world’s top geospatial companies, enabling users to manage and source diverse data from multiple providers through a single interface.

UP42 CEO Sean Wiid commented: “Joining NSG is an exciting step for UP42. Our continued international growth will help support NSG’s ambition to become a global leader in geospatial innovation.”

Wiid added that the collaboration will play a key role in establishing a robust Earth observation ecosystem within Saudi Arabia, benefiting sectors including government, agriculture, energy, and tourism.

Launched in May, NSG aims to become a global leader in the satellite and space sectors. The company provides a wide range of services, including satellite broadband communications, in-flight connectivity, Earth observation, and remote sensing. It is also a prominent investor in cutting-edge space technologies.

NSG plays a vital role in helping achieve Vision 2030 goals, which focus on economic diversification, industrial development, innovation, and job creation.

UP42’s platform revolutionizes how organizations access, manage, and analyze geospatial data. By simplifying data management and enabling large-scale imagery processing, it facilitates the creation of innovative geospatial solutions.

Topics: space industry SaudiVision2030

Ma’aden CEO calls mining industry the solution to global sustainability challenges

Ma’aden CEO calls mining industry the solution to global sustainability challenges
Updated 04 December 2024
Miguel Hadchity
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Ma’aden CEO calls mining industry the solution to global sustainability challenges

Ma’aden CEO calls mining industry the solution to global sustainability challenges
Updated 04 December 2024
Miguel Hadchity

RIYADH: Metals and minerals are critical to the global energy transition, industrialization, modernization, and the broader push for sustainability, according to Ma’aden CEO Robert Wilt.

Wilt made this statement during a panel discussion on “Enhancing climate resilience through land restoration” at the 4th Saudi Green Initiative Forum in Riyadh.

He emphasized the essential role that these resources play in driving global sustainability and innovation, stressing the importance of securing the materials necessary for transformative progress in energy and industry.

“The world cannot make the energy transition. It cannot industrialize, it cannot energize, it cannot modernize without metals and minerals,” Wilt said.

As Saudi Arabia continues to work toward its Vision 2030 goals, the need for collaboration between the public and private sectors to achieve environmental sustainability has become increasingly clear.

Wilt, whose company Ma’aden is a key player in the mining industry, stated that the private sector is crucial in helping the Kingdom meet its sustainability targets.

He added: “That’s why our board in the Kingdom has said that if you’re going to be the third pillar of the Saudi economy, you’re going to be an ESG (environmental, social, and governance) role model, and you’re going to do it right.”

Wilt also outlined Ma’aden’s ambitious sustainability goals, including achieving double-digit reductions in waste, water usage, and carbon emissions year on year, with the ultimate goal of carbon neutrality by 2050. The company’s commitment to sustainability is also reflected in its efforts to plant over a million trees annually. Wilt argued that the mining sector, often seen as a contributor to environmental degradation, should be recognized as part of the solution to the climate crisis.

“If you want to save the world, join mining because we are the solution, not the problem,” he said, aiming to challenge public perceptions and inspire the next generation to consider careers in the industry.

Saudi Arabia’s Deputy Minister for Environment Osama Faqeeha also addressed environmental challenges during the forum. He pointed out that Riyadh consumes over 1 million cubic meters of water daily. “That’s like a river. So now we are actually aiming for 200 percent recycling,” he noted.

Faqeeha further explained that the government has upgraded several wastewater treatment plants to produce high-quality, reusable water, which will be repurposed for industry, land restoration, and other uses.

He emphasized that effective land restoration requires understanding the broader purpose behind the efforts, cautioning that focusing only on carbon storage offers a limited view. He added that ecosystems provide a wide range of services beyond carbon sequestration, making a holistic approach essential.

In terms of greening efforts, Faqeeha shared that Saudi Arabia is implementing a large-scale and detailed plantation plan, which spans both environmental and urban areas.

He also highlighted ongoing collaboration with the Ministry of Transportation to green the country’s highways, broadening the scope of the Kingdom’s land restoration initiatives.

Grethel Aguilar, director general of the International Union for Conservation of Nature, also stressed the private sector’s key role in driving environmental action.

“The private sector is fundamental, and this is not just about offsetting. It’s about planning. It’s about taking the right decisions at the right time. It’s about measuring what is the impact and taking action,” she stated.

Faqeeha echoed this sentiment, emphasizing that environmental sustainability is not merely a desirable objective but an essential one. “Environmental sustainability is not something nice to do, but it’s an imperative,” he said, underscoring that both business and government must work together to achieve meaningful progress.

The panel discussions highlighted the Kingdom’s commitment to embracing innovation and change in its pursuit of both environmental and business success.

Faqeeha remarked:“I think with the determination and actually the will to change, to embrace innovation, I think you can win on the business front, production, as well as environmental.”

For Wilt and Ma’aden, sustainability is not only about benefiting the planet but is also a critical driver of their business strategy.

“Everything we’re doing is sure to save the planet, to green the world, all that. But at the end of the day, we’re a business. We need to make money and make profits,” he concluded, reinforcing that environmental responsibility and profitability can go hand in hand.

Topics: COP16 Green & Blue Saudi Green Initiative Saudi Green Initiative forum

Saudi Arabia targets 30% land protection by 2030 in sustainability push

Saudi Arabia targets 30% land protection by 2030 in sustainability push
Updated 8 sec ago
MIGUEL HADCHITY 
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Saudi Arabia targets 30% land protection by 2030 in sustainability push

Saudi Arabia targets 30% land protection by 2030 in sustainability push
  • Kingdom’s efforts extend beyond its borders, with the nation supporting global initiatives to combat environmental challenges
  • Saudi Climate Envoy Adel Al-Jubeir highlighted broader importance of environmental preservation
Updated 8 sec ago
MIGUEL HADCHITY 

RIYADH: Saudi Arabia now has 20 percent of its territory designated as protected areas, a significant rise from just 3 percent a decade ago, according to a senior official. 

By 2030, this figure is projected to increase to 30 percent, said the Minister of State for Foreign Affairs and the Kingdom’s envoy for climate, Adel Al-Jubeir. 

During the “Climate Envoy Perspective” panel at the 4th Saudi Green Initiative Forum, Al-Jubeir highlighted Saudi Arabia’s dedication to environmental preservation and sustainability.   

“We are protecting 30 percent of our territory; it will be protected areas, both sea and land,” Al-Jubeir said, emphasizing the country’s efforts to conserve biodiversity and ensure sustainable resource management.  

He added: “The fact is, we used to (have) 3 percent of our territory protected 10 years ago, now we’re almost at 20 percent, and by 2030 will be 30 percent.”   

Saudi Arabia’s commitment to protecting its environment is evident in a wide range of initiatives. “We’re working on sustainable fishing in the Red Sea, as well as in the Gulf, and we’re making sure that everything we do is very, very in line with protecting our environment,” Al-Jubeir said.  

He also noted that tourism projects along the Red Sea are being developed with rigorous sustainability and environmental standards, ensuring minimal impact on marine life.   

The minister emphasized the progress of Saudi Arabia’s blue economy, drawing attention to the Kingdom’s announcement earlier regarding the launch of the National Red Sea Sustainability Strategy.

“We have launched more than 80 initiatives in Saudi Arabia, from turning waste into energy, from redesigning our cities, from planting trees, from capturing carbon, both naturally as well as using technology, and we are transitioning towards renewable energy,” Al-Jubeir added.  

He highlighted the Kingdom’s ambitious energy goals, saying: “50 percent of our electricity by 2030 will come from renewable energy, the other 50 percent from natural gas.”   

The Kingdom’s efforts extend beyond its borders, with the nation supporting global initiatives to combat environmental challenges. “We’re helping countries adopt a circular carbon economy approach so that they can deal with planting and environmental issues more effectively,” Al-Jubeir explained.   

Addressing land degradation, the minister emphasized its global impact. “We believe that the issue of land degradation is not just an environmental issue; it’s a national security issue, it’s a global issue, because land degradation means less ability to produce food, which means people go from no-food areas to areas where they can grow food,” he said.   

Al-Jubeir also underscored the economic benefits of sustainability. “When you invest in solar energy and wind, it’s not only sustainable and good for the environment, it’s also very good for the pocketbook,” he said. “Investors are more confident when they come to a country where they have clean water, clean air, and so this is part of what we’re doing.” 

He continued: “For every dollar we spend restoring land, the benefits are anywhere from $7 to $30, akin to investing in technology. We are doing this, and we are trying to point this out to the world.”

Al-Jubeir added: “When you invest in resorts in the Red Sea, and you are very sensitive to the environment it increases the value of your investment, and it makes it more attractive. So, we don't see a contradiction between having the utmost concern for environmental issues and financial gains.”

The minister highlighted the broader importance of environmental preservation, stating: “People are more productive when the environment in which they live is pleasant. We breathe the same air as everybody else. We need the same water like everybody else, and so we are very, very sensitive to our environment and to ensuring that we protect it and that we restore it if it needs to be restored.”   

Saudi Arabia, known as the world’s most efficient producer of oil and gas, is also emerging as a global leader in renewable energy. “We are an example for the world in terms of energy, in terms of renewable energy, in terms of our commitment to the environment,” Al-Jubeir said.   

He stressed the Kingdom’s focus on collaboration and practical solutions to address climate challenges.  

“We believe that we have the technology, we believe that we have the financial resources. We believe that by working together, we can overcome many of the challenges that we face, but we cannot do this if we’re trying to assign blame or trying to point fingers,” Al-Jubeir added. 

“We believe we are facing a tremendous challenge in terms of the climate, and we believe that by working together and putting our resources together we will be able to confront and deal with this challenge effectively,” he said.

Topics: COP16 Green Saudi Arabia Adel Al-Jubeir

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