Saudi Arabia, Egypt to boost energy cooperation after high-level meeting

Saudi Arabia, Egypt to boost energy cooperation after high-level meeting
Saudi Minister of Energy Prince Abdulaziz bin Salman meets Egyptian energy ministers in Riyadh. (Saudi Ministry of Energy)
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Updated 22 July 2024
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Saudi Arabia, Egypt to boost energy cooperation after high-level meeting

Saudi Arabia, Egypt to boost energy cooperation after high-level meeting
  • Ministers discussed various aspects of cooperation between the two countries

RIYADH: Saudi Arabia and Egypt are set to boost energy cooperation following a meeting between top officials to expand ties in petroleum, gas, electricity, renewable energy, and hydrogen.
On July 21, Saudi Minister of Energy Prince Abdulaziz bin Salman met with Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi and Minister of Electricity and Renewable Energy Mahmoud Esmat at his ministry’s headquarters in Riyadh.

This comes as Saudi Arabia and Egypt deepen their energy cooperation, with Egypt signing a $4 billion deal with Saudi Arabia’s ACWA Power in December 2023 to develop a green hydrogen project. The agreement includes a work plan for the first phase, targeting a production capacity of up to 600,000 tons annually of green ammonia.  
During the meeting, the ministers discussed various aspects of cooperation between the two countries, aiming to align their efforts with the shared visions of their leadership and the ambitions of their peoples, according to a statement from the Saudi Energy Ministry.

“The energy strategies of both countries were reviewed, and key work areas and measures to diversify the energy mix and address challenges in the energy sector were discussed, all within the framework of ensuring sustainable and affordable energy sources,” said the statement.

The recent Riyadh meeting also reviewed the progress of joint projects, including the electrical interconnection between the Saudi and Egyptian grids — the largest in the region. 

This initiative aims to enhance the stability and reliability of the electrical supply between the two countries and maximize the economic and developmental benefits of their collaborative electrical undertakings, the statement added.
In a similar statement issued by the Egyptian Ministry of Petroleum and Mineral Resources, Badawi emphasized the depth of the partnership and the distinguished relations between Egypt and Saudi Arabia, which have spanned decades across various fields, particularly in energy.
He said that the strategies of both countries were reviewed, including key work areas and measures to diversify the energy mix and address challenges in the sector to ensure sustainable and affordable energy sources.
The minister said that his ministry’s priorities include increasing production, accelerating exploration activities, and utilizing available capacities in refineries and petrochemical plants.
Badawi also stressed the importance of enhancing cooperation with the Kingdom and other allied countries, as well as exchanging expertise and sharing success stories to maximize integration between the two nations and increase the added value of natural resources.
The Egyptian statement also underlined the importance of developing action plans with realistic and fundamental solutions grounded in economic principles to ensure sustainability, and the need for continued investment in human resources, the development of young talent, and women’s empowerment.
The meeting agreed on the need to optimize the use of petroleum resources while considering environmental considerations. It discussed expanding programs and initiatives to reduce carbon emissions, including improving energy efficiency and enhancing the value of carbon through modern technologies and innovative methods such as enhanced oil recovery, the Egyptian ministry added in its statement.
The meeting concluded with the formation of joint working groups to focus on priority areas of cooperation that will develop implementation mechanisms to ensure actionable outcomes are achieved.


Technological revolution unlocks extraordinary opportunities for humanity, says top executive

Technological revolution unlocks extraordinary opportunities for humanity, says top executive
Updated 6 sec ago
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Technological revolution unlocks extraordinary opportunities for humanity, says top executive

Technological revolution unlocks extraordinary opportunities for humanity, says top executive
  • Acceleration, particularly in AI, biotechnology, and space exploration, is creating unique opportunities
  • Discussions about the direction of these advancements and their implications for humanity are lacking

RIYADH: The world is experiencing an unprecedented rate of technological and societal change, which a senior executive has described as “the most extraordinary time ever to be alive.” 

In an exclusive interview with Arab News at the 8th Future Investment Initiative summit in Riyadh, Peter Diamandis, executive chairman of the XPRIZE Foundation and board member of the FII, highlighted that this acceleration, particularly in areas like artificial intelligence, biotechnology, and space exploration, is creating unique opportunities.

Diamandis said: “The speed of change is accelerating, and there’s not enough conversation taking place on where things are going, how fast they’re getting there, and how do we shape it, and how do we steer it.” 

He expressed his belief that we have the potential to uplift every individual on the planet and to foster a hopeful, abundant future for humanity. “That’s my mission,” he added.

However, he cautioned that discussions about the direction of these advancements and their implications for humanity are lacking.

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All about the mindset

Diamandis said that mindset is crucial for any leader’s success. He argued that a positive mindset enables leaders to navigate challenges and recover even when everything else seems lost. 

“I would posit that mindset was the single most important attribute of any leader in their success, and if they lost everything but retained their mindset, they’d be able to regain their success,” he added.

He continued: “If that’s true, then a lot of the mission I’m focused on is helping people realize that the mindset you have is your single greatest asset as a leader, as an entrepreneur, whatever you’re doing.”

Diamandis said that the scarcity mindset, inherited through generations, is outdated today. He advocates for an abundance mindset, which centers on believing that technology can convert scarcity into abundance.

Technology as a catalyst 

Diamandis’ work embodies the belief that technology is a powerful force that transforms scarcity into abundance. 

“Technology is a force that turns whatever was scarce into greater and greater abundance,” he said, adding that advancements like artificial intelligence have the potential to democratize access to resources and opportunities for everyone on the planet.

He expressed optimism that these innovations will pave the way for a future where everyone has access to essential resources such as food, water, energy, health care, and education. 

Reflecting on the value of health, Diamandis said that it is humanity’s greatest wealth. He noted that when asked to prioritize between health and any other asset, most people would choose the health of their loved ones.

“I think health is our greatest wealth. I think if you ask yourself what matters, if you had to choose between the health of your husband or wife, the health of your children, and anything else you have, I hope most people would choose their health,” he said.

Diamandis advocates for extending the health span — the number of years people live in good health — through technologies like AI and biotechnology to combat aging. He sees this pursuit as a significant and lucrative frontier for the coming decades. 

“I believe that this is the decade that principally because of AI and biotechnology, that we’re beginning to understand why we age how to slow it, stop it, and eventually reverse it,” Diamandis said.

He added: “When I ask people, would you like to live 220 or 150, most people’s image of that is drooling in a wheelchair. But what we’re speaking about is, can you have the energy, the aesthetics, the cognition at 100 that you had when you’re in your 40s and 50s.”

A sneak peek at the future

Despite ongoing conflicts and global challenges, Diamandis remains optimistic about the future. He believes humanity has the potential to create a world of abundance where everyone has access to life’s basic necessities. 

“I think despite the challenges we have in conflicts, we have extraordinary opportunities to create a world of massive abundance, a world where every man, woman, and child has access to all the food, water, energy, health care, and education they desire. This is without question,” he said.

As Saudi Arabia continues its transformation under Vision 2030, Diamandis’ insights resonate with the Kingdom’s commitment to innovation and sustainable industry development. His focus on mindset, health, and technology highlights the importance of forward-thinking leadership in crafting a prosperous and inclusive future.

As FII’s board member, he explained that his role involves helping the initiative act as a platform for uniting leaders in finance and technology to engage in crucial discussions about humanity’s future.

“I’m actively involved as a host on stage and within the conclaves, ensuring that we’re addressing the most important conversations needed to shape the world’s future,” he said.


Ambassador, industry experts gather in Tokyo for Aramco forum

Ambassador, industry experts gather in Tokyo for Aramco forum
Updated 52 min 25 sec ago
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Ambassador, industry experts gather in Tokyo for Aramco forum

Ambassador, industry experts gather in Tokyo for Aramco forum
  • The forum aimed to build partnerships for the development and production of oil, gas and chemical products in Saudi Arabia

A forum was organized by Aramco in Tokyo on Tuesday, with Saudi Ambassador to Japan Ghazi Binzagr and Senior Vice President of Project Management at Aramco Asia Japan Co. Yahya Abu Shal in attendance.

The forum aimed to build partnerships for the development and production of oil, gas and chemical products in Saudi Arabia.

 

 

Experts from Aramco and several other Saudi and Japanese organizations delivered speeches. The Saudi side hosted a presentation on the support programs that enable Japanese companies to benefit from business opportunities in the Kingdom.

According to the Saudi Embassy in Japan, the forum attracted substantial interest from participants and people interested in energy and industrial development.


FII CEO Richard Attias announces departure at opening of 8th Future Investment Initiative

FII CEO Richard Attias announces departure at opening of 8th Future Investment Initiative
Updated 55 min 59 sec ago
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FII CEO Richard Attias announces departure at opening of 8th Future Investment Initiative

FII CEO Richard Attias announces departure at opening of 8th Future Investment Initiative

RIYADH: Future Investment Initiative Institute CEO Richard Attias is stepping down from the role, he announced on the opening day of the eighth FII forum.

Addressing an audience of global leaders and investors, Attias expressed gratitude for his journey with FII and said he would leave the position by the end of 2024.

In his remarks the executive, who joined FII as CEO in January 2020, emphasized the importance of passing the baton to the next generation.

“Thank you for allowing me to be part of this incredible journey. It has been the honor of a lifetime,” he said.

Attias opened the event with a message highlighting the potential and ambition driving the summit’s agenda: “When we speak of infinite horizons, we are not merely picturing vast landscapes.” 

He added: “We are invoking the limitless possibilities that define our human spirit.” 

Describing the theme of “Infinite Horizons” as an invitation to imagine new futures, Attias said: “The horizon is not an end; it’s an invitation, an invitation to push the boundaries of what we believe is possible and to shape the future that reflects our highest ambitions.” 

He urged attendees to lead with vision and drive: “Today, we call on each of you to be the leaders who do not see the world as it is, but as it could be.”

Reflecting on the FII’s transformative impact since its start in 2017, Attias celebrated the event’s role as more than a forum for dialogue. “Since its inception, FII has transcended beyond just discussions, becoming a transformative force for action, progress, and solutions,” he said.

Governor of the Public Investment Fund, Chairman of Saudi Aramco, and Chairman of the FII Institute, Yasir Al-Rumayyan, built on Attias’s remarks, emphasizing the need for interconnected solutions in an increasingly complex world. 

Chairman of the FII Institute Yasir Al-Rumayyan. Screenshot

“Today, we face challenges that are no longer isolated but interconnected,” Al-Rumayyan said. 

He explained that these challenges open new pathways for progress and encapsulated the ambition of this year’s theme, and highlighted the responsibility of investing with purpose, saying: “We have the responsibilities and the opportunities to shape a future that invests not only in our economies but in humanity itself.” 

Stressing the role of emerging markets, the FII Institute chairman said: “By 2030, it’s projected that the growth of emerging markets’ economies will outpace developed markets.” This shift, he explained, “underscores the need for strategic investments in places that will drive tomorrow’s global economy.”

Artificial intelligence emerged as a focal point in the speech, with Al-Rumayyan highlighting its transformative economic potential. “AI alone could add nearly $20 trillion to the global economy by 2030,” he projected, adding that by 2027 “AI’s role as an economic driver will become a benchmark of national power.” 

He also emphasized the energy sector as a prime example of purposeful investment, saying: “Our goal is not just to fuel economies, but to empower a future where energy sustains progress and well-being for generations to come.” 

Al-Rumayyan underscored the importance of aligning government policies with fiscal strategies to achieve sustainable impact, calling this alignment the “new frontier where purposeful investments meet sustainable impact.”

Highlighting global investment trends, Al-Rumayyan pointed to data from the FII Priority Compass, underlining that while rising living costs remain a top global concern, “climate change is now the fourth highest priority globally.” 

At the FII Institute, he pledged a continued commitment to inclusivity, stating: “Investing with purpose means creating a new standard where financial returns and human progress go hand in hand together.” 

He urged investors and directors alike to view challenges as opportunities for transformative impact: “As leaders and global investors, we can transform today’s challenges into tomorrow’s opportunities.”

Later, in a roundtable discussion, Al-Rumayyan reflected on the evolution of Saudi Arabia’s investment strategy. “A lot of people would come looking for our money to be invested abroad. But that has shifted over the years; now we’re more focused on the domestic economy.” 

Over the past eight to nine years, PIF has increasingly concentrated on local initiatives, transforming Saudi Arabia’s economic landscape and altering global perceptions. “Most of our projects are getting operational and commercial, and people are seeing the difference between their perception of Saudi Arabia back in 2015 and now,” he said.

The Kingdom’s economy, Al-Rumayyan underlined, is among the fastest-growing globally. “In 2022, we were the fastest-growing economy in the G20, growing by more than 7 percent,” he said, adding that projections place the nation among the top performers in the G20 in the years to come. 

To balance global and domestic investments, he explained that PIF aims to adjust its international investment share from 30 percent to a target range of 18-20 percent.

Al-Rumayyan highlighted the Kingdom’s strategic positioning as an international economic nexus, describing the country’s unique advantages.

“Saudi Arabia is very well-positioned to be a global hub, not only a regional hub,” he said, listing factors such as efficient energy use, low energy costs, and extensive resources, including advanced technologies and renewable energy potential. 

He emphasized the scale of backing required for infrastructure growth globally, pointing to a massive $9 trillion in money markets awaiting investment.

Laurence Fink, CEO of BlackRock. Screenshot

Laurence Fink, CEO of BlackRock, echoed this sentiment, calling the current period an “investment blossoming.” Fink highlighted robust earnings growth and the alignment of profits with price elasticity, signaling that global markets are witnessing sustained growth. 

AI’s transformative potential was a recurring theme, explored further by other tech leaders. Ruth Porat, president and chief investment officer of Alphabet and Google, described AI as a “transformational, generational technology,” urging leaders to rethink what is possible in an era of advanced systems. 

Former Google CEO Eric Schmidt commented on AI’s future in defense, suggesting a redefinition of warfare, where automation could transform traditional combat roles. 

“War is today defined stereotypically as man shooting another man. If you’re a computer scientist, this makes no sense. The guns should be automated, and people should be drinking coffee somewhere else,” Schmidt said.

The FII event continues until Oct. 31, with leaders and investors engaging in discussions underscoring the commitment to purposeful investment as a driver for sustainable impact, human progress, and future-focused economic growth.


Saudi Arabia ranks highest in personal satisfaction amid global dissatisfaction: FII survey 

Saudi Arabia ranks highest in personal satisfaction amid global dissatisfaction: FII survey 
Updated 29 October 2024
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Saudi Arabia ranks highest in personal satisfaction amid global dissatisfaction: FII survey 

Saudi Arabia ranks highest in personal satisfaction amid global dissatisfaction: FII survey 
  • Citizens in the Global South are almost twice as likely to be satisfied with the situation in their country compared to citizens in the Global North  

DUBAI: As global dissatisfaction with current events rises, Saudi Arabia stands out with the highest personal satisfaction rate among surveyed countries, according to the latest FII Priority Global Survey.  

While 52 percent of people globally express frustration with the state of world affairs, 84 percent of Saudis report satisfaction with their personal lives — the highest recorded in the survey — underscoring the region’s resilience against broader global discontent. 

Conducted across 24 countries representing over 62 percent of the world’s population, the survey reveals stark contrasts in regional outlooks.  

“When we look at satisfaction at a country level, we see a great deal of variation. Satisfaction with citizens’ own lives is highest in Saudi Arabia on 84 percent and lowest in South Korea on 39 percent,” the FII survey report stated.  

However, the findings noted that it is only in South Africa, the Ivory Coast, Argentina, Japan, Turkiye and South Korea that less than half of citizens are satisfied with their lives.  

“Turning to dissatisfaction, there is less of a range, with a low of 7 percent in Saudi Arabia compared to 38 percent in Turkiye, which has the highest levels of dissatisfaction measured,” the report added. 

In the Global South, 34 percent of respondents express satisfaction with their country’s direction, nearly triple the 12 percent recorded in the Global North. However, within their own countries, Saudi citizens are notably optimistic, with many expressing confidence in their future as geopolitical and economic tensions persist worldwide. 

Satisfaction rates across other countries vary widely, with South Korea reporting the lowest personal satisfaction at 39 percent. Looking to the future, economic optimism remains tempered in the Global North, where only 22 percent expect improvement, compared to a more positive 51 percent in the Global South. 

On a global scale, economic conditions dominate concerns, with 40 percent of respondents highlighting economic stability as their primary issue, followed by political stability at 19 percent and healthcare at 17 percent.  

In contrast to the broad decline in environmental concern, Japan and South Korea have high levels of concern, with 72 percent and 63 percent respectively, while Saudi Arabia registers lower-than-average concern for climate risks, at 41 percent. 

Financial stability is another top priority, with 53 percent identifying it as essential for quality of life and 48 percent citing it as critical for future health. Inflation and rising living costs remain a significant concern, with 57 percent of respondents reporting worsening conditions.  

While social inclusion ranks fifth among global issues, concerns over tolerance, economic equity, and the risk of class-based tension were more prominent in Europe at 9 percent than Asia at 5 percent.  

Despite these concerns, social cohesion — defined as local ties and community engagement — remains strong in Saudi Arabia, India, and Indonesia. 

Technology, though lower in priority, plays an increasingly vital role in daily life, with 63 percent of respondents feeling prepared for the digital era.  

African and Middle East and North Africa regions report the highest preparedness rates, while Europe lags at 50 percent. Among technology concerns, artificial intelligence ranks highest, especially in the Global South, where respondents worry about job displacement and control over digital tools. 

Saudi Arabia and India are among the Global South countries where technology is viewed as a pressing issue, with AI’s implications prompting concern. When asked if technologies like ChatGPT and AI pose a societal risk, 37 percent of respondents agreed, 24 percent disagreed, and 39 percent remained neutral. 

The FII Priority Global Survey offers a snapshot of the priorities, concerns, and aspirations of citizens worldwide, with insights for policymakers navigating these evolving challenges across the global economic, technological, and social landscape.


Oil Updates – prices little changed though US reserve bid lends support

Oil Updates – prices little changed though US reserve bid lends support
Updated 29 October 2024
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Oil Updates – prices little changed though US reserve bid lends support

Oil Updates – prices little changed though US reserve bid lends support

TOKYO: Oil prices were little changed on Tuesday after falling in the previous session as a US plan to buy oil for the Strategic Petroleum Reserve provided some support though wider concerns about weaker future demand growth exerted pressure.

Brent crude futures climbed 3 cents to $71.45 a barrel by 7:15 a.m. Saudi time, while US West Texas Intermediate crude was up 7 cents at $67.45 a barrel.

Both contracts tumbled 6 percent on Monday to their lowest since Oct. 1 after Israel’s retaliatory strike on Iran at the weekend bypassed Tehran’s oil infrastructure.

With signs that neither country seemed likely to escalate the conflict after the attack, investor concerns about flagging global oil demand growth for this year and next rose to the fore.

“While outlook for the Middle East situation remains alarming, the market is expecting a temporary lull in retaliatory strikes between Israel and Iran,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

“The US plan to refill the SPR provided some support to the market,” he said, but predicted a downward trend ahead as peak winter kerosene demand season in the Northern Hemisphere was still some way off while demand in China remained sluggish.

The US on Monday said it was seeking up to 3 million barrels of oil for the SPR for delivery through May next year, a purchase that would leave the government with little money to buy more until lawmakers approve more funds.

On Saturday, scores of Israeli jets completed three waves of strikes against missile factories and other sites near Tehran and in western Iran, the latest exchange between the Middle Eastern rivals.

The attacks were more tailored toward military targets, easing fears that Israel might attack Iran’s nuclear facilities or oil infrastructure.

“The targeted response from Israel does leave the door open for de-escalation, which would allow fundamentals once again to be the dominant driver for the market,” said ING Economics analysts in a report, adding that fundamentals are expected to be bearish through 2025.

Tensions in the Middle East remain high, however, as Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that Iran will “use all available tools” to respond to Israel’s weekend attack.

The US warned Iran at the UN Security Council of “severe consequences” if it undertakes any further aggressive acts against Israel or US personnel in the Middle East.

In the US, crude oil and gasoline stockpiles likely rose last week, while distillate inventories were seen down, a preliminary Reuters poll showed on Monday.

The American Petroleum Institute industry group is scheduled to release a weekly report on Tuesday and the Energy Information Administration, the statistical arm of the US Department of Energy, will issue one on Wednesday.