Saudi Green Building Forum set to obtain UNCCD’s permanent observer status 

The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification.
The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification.
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Updated 28 April 2024
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Saudi Green Building Forum set to obtain UNCCD’s permanent observer status 

Saudi Green Building Forum set to obtain UNCCD’s permanent observer status 

RIYADH: The Saudi Green Building Forum is set to obtain permanent observer status following the submission of a formal request to the UN Convention to Combat Desertification. 

Pending a final decision during the 16th session of the Conference of the Parties to be held from Dec. 2-13 in Riyadh, this move underscores the forum’s efforts to enhance its role in sustainable development and combat desertification. 

The forum, which has already been temporarily accredited, is involved in the proceedings based on the provisions of paragraph seven of article 22 of the convention and articles six and seven of the internal regulations of the COP, according to a press release. 

This initiative is part of a broader strategy to integrate scientific and community-based approaches to environmental management. 

Commenting on the development, Faisal Al-Fadl, secretary-general of the Saudi Green Building Forum, said: “We are pleased with the official notification from the UN Secretariat of the receipt of the required documents after a thorough review of the documents submitted for the accreditation of the forum as the first Saudi institution specialized in preparation for obtaining observer status for the Conference of the Parties to the UN Convention to Combat Desertification,” he stated. 

“The efforts of local communities play a significant role in enhancing the sustainable development goals for people, plants, and prosperity through advocating for human experiences based on scientific rules and community health and well-being for healthy, fair, and resilient communities and cities, sufficient consumption and production, climate action in removing harmful carbon, and reducing the temperature to 1.5 degrees Celsius, addressing desertification, and managing natural resources and water,” he added. 

The UN Secretariat confirmed the receipt of all necessary documents for the forum’s accreditation as an observer, encouraging further participation in the convention’s activities. 

“After a thorough review of the documents submitted by your institution, we encourage you to continue participating in the implementation of the UN Convention to Combat Desertification and keep the secretariat informed of the activities,” the letter stated. 

The Saudi Green Building Forum’s potential new status as a permanent observer at the UN Convention will enable it to contribute more effectively to global efforts against desertification, leveraging cooperation between developed and developing nations, particularly in sustainable land management and environmental restoration. 


Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Saudi-US bilateral accords ‘not that connected’ to Israel normalization
Updated 41 sec ago
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Saudi-US bilateral accords ‘not that connected’ to Israel normalization

Saudi-US bilateral accords ‘not that connected’ to Israel normalization

RIYADH: Saudi Arabia’s foreign minister said on Thursday that some of the bilateral agreements the kingdom has been negotiating with Washington are “not that tied” to the normalization of Saudi relations with Israel and are “moving ahead.”

He noted that potential US-Saudi agreements on trade and artificial intelligence are “not tied to any third parties” and “can progress probably quite quickly.”

“Some of the more significant defense cooperation agreements are much more complicated. We would certainly welcome the opportunity to finalize them before the end of the Biden administration's term, but that’s reliant on factors outside of our control,” he said.

“The other work streams are not that connected, and some of them are progressing quite quickly, and we hope to see movement forward.”

Ruling out the possibility of Saudi Arabia recognizing Israel without the establishment of a Palestinian state, Prince Faisal stated that this remains the only viable solution, regardless of Israel’s acceptance.

Speaking at the Future Investment Initiative summit in Riyadh, he emphasized that the creation of a Palestinian state is rooted in international law and UN resolutions.

“In reality, the establishment of a Palestinian state is not tied to whether or not Israel accepts it; it’s tied to the principles of international law,” he said. “The UN resolutions that led to the establishment of the state of Israel clearly envisioned a Palestinian state as well, so we need to make that happen.”

Prince Faisal asserted that normalization of Saudi-Israeli ties is “off the table” until there is a resolution regarding Palestinian statehood. He further highlighted the broader implications, stating, “The security of the region as a whole is at risk if we do not address the rights of the Palestinians.”

Addressing the ongoing crisis in Gaza, he called for a cease-fire, emphasizing the dangers of an Israeli overreaction following the events of October 7th. “We have seen the reality that Israel’s reaction and its continuing military assault have led to a humanitarian catastrophe,” he remarked. He described the situation in northern Gaza as dire, with blockades and no safe zones for civilians, stating, “That can only be described as a form of genocide. It is certainly against humanitarian law, and that is feeding a continuing cycle of violence.”

On the prospects of an immediate cease-fire, Prince Faisal expressed caution, saying, “I hope it’s the case that we can see a cease-fire in the immediate hours, in the immediate short term. I’m not sure that that’s the case. I don’t have the details.”

He acknowledged US efforts to facilitate negotiations, adding, “We are not part of the direct negotiations, but we certainly support the efforts that the US has undertaken to find a pathway to a ceasefire. I hope it comes to fruition.”

He noted that previous attempts at cease-fire negotiations had failed due to new demands from Israel. “In most of those instances where the talks collapsed, it has been because new requirements or demands were added on the part of Israel,” he explained.

Prince Faisal also addressed Saudi Arabia’s position on Lebanon, emphasizing a hands-off approach. “We have never fully disengaged. But we believe it’s up to the Lebanese politicians to seek a direction that puts Lebanon on the right track,” he stated.

He added: “It’s not up to any outside influence, any outside countries, or any outside powers to tell the Lebanese what to do or to influence the political process in Lebanon. That is our opinion.”

Regarding relations with Iran, Prince Faisal indicated that recent discussions focused on regional de-escalation. “I hope that Iran, like us, is working toward regional de-escalation on all fronts, not just in Lebanon. That’s very much the focus of my conversations with my Iranian counterpart,” he said. While he could not be “confident of anything that is in the control of other parties,” he emphasized the importance of avoiding further escalation.

“I have made it clear to our Iranian counterparts that it is important to avoid any further escalation. My sense is that they realize the risks of escalation and would prefer to avoid it. But, of course, they have their own strategic calculations.”


NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors
Updated 19 min 48 sec ago
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NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

NBK eyes partnerships in Saudi Arabia to tap Vision 2030 opportunities across diverse sectors

RIYADH: The National Bank of Kuwait is looking to partner with different companies in Saudi Arabia as the Kingdom’s Vision 2030 opens opportunities for financial partnerships, a senior executive said. 

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh, the General Manager of the National Bank of Kuwait in Saudi Arabia, Anas Al-Ubaid, highlighted that NBK has developed strong connections with key players, including other financial institutions.

“We have a good partnership with a lot of government bodies, corporates, and even private banking or high net worth individuals,” Al-Ubaid said.

He added: “We’re here on the market since 2006. We’re serving the market. We partnered up with the majority of the names in that market, even with banks. Once the opportunities arise, definitely we could partner up with them.”

Al-Ubaid also explained how the bank’s approach goes beyond traditional lending to provide customized financial solutions that meet specific client needs and support their business growth.

“The way we look at it here at NBK, it’s not just about lending. It’s about providing tailored financial solutions for our clients, serving their needs, and also helping them to grow their businesses,” he said.

Al-Ubaid continued: “There is no definite sector that we’re looking at. We’re looking at all areas that we could help with and help our partners in the markets.”

He added: “Our expertise is in tailoring solutions for clients, whether corporates or individuals,” highlighting NBK’s focus on customized financial services that support Vision 2030.

He further underlined that the Saudi market offers significant growth potential for banks, particularly as demand rises for customized financial solutions.

“I would say there’s a lot of opportunities in the markets for banks and financial institutions to grow in that area. Definitely. The market is eager to see more tailored solutions for clients, especially now the clients in Saudi,” Al-Ubaid said.

On the first day of the event, NBK signed four agreements worth $1.6 billion, underscoring the growing demand for sophisticated financial solutions within Saudi Arabia’s evolving market.

One agreement was inked with ACWA Power – worth SR2.6 billion ($690 million) – to support the company’s expansion in energy and water resource sectors across the Middle East and North Africa.

Additionally, NBK established an SR1.8 billion credit facility with Al Gihaz Contracting Co., helping fund the Kingdom’s largest energy storage project.

Agreements were also signed with Pan-Kingdom Holding Group and Alyusr Leasing to further their operational goals, with the deals valued at SR1 billion and SR750 million, respectively.


Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

Riyadh Air secures $1.3bn credit facility ahead of 2025 launch
Updated 38 min 31 sec ago
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Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

Riyadh Air secures $1.3bn credit facility ahead of 2025 launch

RIYADH: Saudi Arabia’s Riyadh Air has secured a $1.3 billion credit facility from a consortium of Gulf banks to fund its upcoming launch in 2025, according to the airline’s chief financial officer.

Speaking to Arab News at the Future Investment Initiative in Riyadh, taking place from Oct. 29 to 31, Adam Boukadida described this as the airline’s first corporate finance deal.

This initiative aligns with Riyadh Air’s goal, backed by the Kingdom’s Public Investment Fund, to serve over 100 destinations by the end of the decade through strategic partnerships.

“This is the first corporate finance deal for Riyadh Air. We’re very excited about that. It’s for up to SR5 billion. It’s what is called an accordion structure,” Boukadida said.

He noted that the transaction involves eight financial institutions, with six being Saudi banks, alongside Gulf International Bank and Emirates NBD from Dubai. “So, we’ve got a complement of local and regional powerhouses to support us in our first transaction,” he added.

The CFO explained that the transaction is for 12 months, with an option to roll over and extend, which the company anticipates will occur. The funds will serve as the backbone of the airline’s balance sheet and will be utilized for general corporate purposes as needed.

“It is in Saudi riyals and it’s very well priced. We have a great credit rating, of course. There’s a strong belief from our banking partners about the purpose of this and the importance of being part of the first syndicated revolving credit facility,” he said.

Since the company is currently non-operational, Boukadida mentioned that they may consider various financial instruments in the future, including debt, capital markets, and bonds. “It’s really good financial practice to start and support and build out your balance sheet with what would be called a club or syndicated loan there for working capital benefits and requirements,” he explained.

Boukadida also highlighted that the airline plans to have just 130 aircraft over the next five years. “In aviation, especially with the size and scale we’re looking to achieve at Riyadh Air, we explore many creative financial solutions in the future, whether that be leasing or mortgage-type aircraft financing transactions,” he said.

Regarding a recent agreement with Aramco, which was signed during the FII, Boukadida stated, “It’s likely that Aramco will be our biggest fuel supply source.” He said the two companies want to jointly explore ways to make the aviation industry more sustainable.

On sustainable aviation fuel, he noted that affordability remains a significant challenge. “Generally speaking, sustainable aviation fuel, or SAF, is about three or four times more expensive than normal jet fuel. So that’s something that needs to be addressed for sure,” he remarked.

Shifting to digitization, Boukadida discussed the airline’s ambition to provide an Amazon-like experience. “We’re a digital company that enables travel rather than a traditional legacy airline,” he said. “We will offer, and we announced it yesterday, version 1.0 of what we call ‘offer and order.’ It’s very similar to an Amazon experience or, in the region, a noon.com experience where you do your basket online retail shopping,” he added.


Closing Bell: Saudi main index closes in green at 12,022

Closing Bell: Saudi main index closes in green at 12,022
Updated 39 min 5 sec ago
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Closing Bell: Saudi main index closes in green at 12,022

Closing Bell: Saudi main index closes in green at 12,022

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Thursday, gaining 3.3 points, or 0.03 percent, to close at 12,022.11.

The total trading value of the benchmark index was SR6.54 billion ($1.74 billion), with 103 listed stocks advancing, while 124 retreated.

The MSCI Tadawul Index decreased by 4.06 points, or 0.27 percent, closing at 1,507.31.

The Kingdom’s parallel market Nomu gained 356.19 points, or 1.33 percent, to close at 27,225.18, with 39 stocks advancing and 31 retreating.

The best-performing stock of the day was Astra Industrial Group, whose share price surged by 7.10 percent to SR178. 

Other top performers included Electricity and Water Utilities Co. in Jubail and Yanbu, which saw a rise of 5.95 percent to SR58.8. 

Electrical Industries Co. and Jadwa Saudi REIT Fund also recorded gains of 5.42 percent and 5.38 percent, closing at SR7.97 and SR11.36, respectively.

The worst performer was Arabian Pipes Co., with a share price decline of 5.75 percent to SR131.2. 

Americana and Arab Cooperative Insurance Co. also saw drops, with shares decreasing by 4.6 percent and 3.37 percent to SR2.28 and SR12.62, respectively. 

Methanol Chemicals Co. and Thimar Development Holding Co. also fell by 3.03 percent, closing at SR17.28 and SR41.65, respectively.

On the announcements front, Saudi National Shipping Co. reported preliminary financial results for the nine months ending Sept. 30, showing a net profit of SR1.69 billion, a 39.84 percent increase from the same period last year. 

This was attributed to improved operational performance and higher global shipping rates, especially in the chemicals and oil transportation sectors. 

The company’s stock closed at SR29, down by 1.02 percent.

Americana reported a net profit of SR440.18 million for the same period, marking a 48.22 percent annual decline. 

According to a Tadawul filing, the decline was impacted by lower earnings before interest, taxes, depreciation, and amortization, increased depreciation charges from new store openings, and the introduction of corporate tax in the UAE. 

The company’s stock ended the session at SR2.28, down 4.6 percent.

Modern Mills for Food Products Co. posted a net profit of SR157.89 million, a 4.8 percent increase from the same period last year, despite incurring a one-time finance cost of SR8.4 million due to debt restructuring. 

This growth was driven by top-line expansion, new product launches, and a favorable product mix. Its stock closed the session at SR43.9, unchanged.

Saudi Reinsurance Co. reported a net profit after zakat of SR474.95 million, reflecting a 351.33 percent increase from the same period last year. 

According to a Tadawul filing, this increase was due to several factors, including a 39 percent rise in net profit from insurance results, a 67 percent increase in insurance revenues, and a 947 percent surge in net investment profit, largely from capital gains on its Probitas Holding stake sale. 

The firm’s stock closed at SR37.15, down by 0.67 percent.


‘Timid’ investors need to be open to Middle East’s potential, equity firm CEO says 

‘Timid’ investors need to be open to Middle East’s potential, equity firm CEO says 
Updated 39 min 58 sec ago
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‘Timid’ investors need to be open to Middle East’s potential, equity firm CEO says 

‘Timid’ investors need to be open to Middle East’s potential, equity firm CEO says 

RIYDAH: Investors need to be braver and exploit Saudi Arabia’s position as a hub linking Europe and Asia, insists the head of private equity firm Eurazeo. 

Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh, Christophe Baviere, chairman and CEO of the France-based firm, talked up the potential of the Kingdom to deliver returns to those with the vision to invest in the region. 

The firm has maintained a presence in Saudi Arabia for 10 years, with Baviere attending all eight FII forums to date. 

The three-day conference welcomed over 7,000 attendees, and saw leading figures from the worlds of business, economics, and politics debating issues such as artificial intelligence and sustainability.   

Reflecting on the advantages the Kingdom and the Middle East, Baviere said: “First and foremost, Saudi Arabia is a very promising local market, with a young, educated population that is digital by nature. The region has the potential to act as a hub for the whole region, linking Asia and Africa. Right now, we really need to think in terms of hubs. 

“We often have to deal with the fact that investors are still a little timid in their investments. Most people keep most of their savings in areas of the world that are already very well defined, such as the United States and the United Kingdom. The main challenge is to teach people to open up the geographical areas in which they can invest.” 

Eurazeo finances medium-sized companies, helping them raise their international profile, particularly by forming partnerships in the region. 

“The difficulty often lies in explaining to our investors that they need to invest not just in Europe, but also in Saudi Arabia, Africa and Asia,” said Baviere, adding: “When we look internationally, we look at sectors that we know well, in particular the financial, medical, energy transition, digital transition and technological innovation sectors. We are active in sectors where our expertise is already long-established and recognized in Europe, and these are sectors in which Saudi Arabia has great potential.”