ISLAMABAD: Saudi Investment Minister Khalid bin Abdulaziz Al-Falih has said Riyadh and Islamabad needed to enable private sector investments within existing government-to-government mechanisms.
The official cited the Saudi-Pakistan Supreme Coordination Council and Saudi Arabia’s Permanent Coordination Committee for the Development of the Contracting Sector as examples of where funding could be directed.
Islamabad and Riyadh signed an agreement to establish the SPSCC in 2021 to institutionalize and fast-track decision-making and implementation on political, security, economic and cultural areas of collaboration.
The body aims to streamline bilateral cooperation between the two countries, particularly to remove hurdles in investment deals.
Saudi Arabia’s Permanent Coordination Committee for the Development of the Contracting Sector was created in 2022 to work to upgrade the construction sector and tackle project delays and hurdles.
On Thursday, Pakistani Prime Minister Shehbaz Sharif and Al-Falih, as part of his three-day visit to Islamabad, oversaw the signing of over $2 billion in agreements and memorandums of understanding between Saudi and Pakistani businesses.
In comments televised on Pakistan’s state APP news agency on Friday, Al-Falih said Pakistan and Saudi Arabia needed to activate work under existing G2G frameworks such as the Permanent Coordination Committee, which is being led by Mohammad Bin Mazyad Al-Tuwaijri, a Saudi politician and minister-ranked adviser at the Royal Court, with Petroleum Minister Musadik Malik as his Pakistani counterpart.
“And he (Al-Tuwaijri) has elected to place the Pakistan portfolio within the Royal Court team because he wants to personally have his finger on the pulse of how we are managing (Pakistani investments),” Al-Falih said.
“Within the scope of the G2G, his excellency Al-Tuwaijri and his team have asked MISA (Ministry of Investment for Saudi Arabia) to take the lead on everything about investment, everything about channeling private sector funding, everything about risk mitigation, everything about investment protection, everything about privatization, everything about funding. Ultimately what we need to do is enable the private sector,” he added.
The Saudi minister visited Pakistan with a delegation of over 130 businesspeople representing various sectors, including energy, mining, and agriculture, as well as tourism, construction, IT and industry.
The visit comes as Islamabad seeks closer economic cooperation with friendly countries and regional allies, with the aim to attract foreign investment and shore up its $350 billion economy, beset by a prolonged economic crisis that has drained foreign exchange reserves and weakened the national currency.
Pakistan and Saudi Arabia have been working closely in recent months to increase bilateral trade and investment, with Crown Prince Mohamed bin Salman reaffirming the Kingdom’s commitment earlier this year to expedite a $5 billion investment package for the South Asian country.
Agriculture key to climate change mitigation, experts say
Updated 13 November 2024
Haifa Alshammari
BAKU: Agriculture should be a central focus of global efforts to mitigate climate change, experts told Arab News on the sidelines of the COP29 UN climate change conference in Baku, Azerbaijan.
“Agriculture is a victim of climate change because in agriculture we have the most vulnerable and low-income people,” Aditi Mukherji, director of climate change adaptation at the Consortium of International Agricultural Research Centers, told Arab News.
She added: “We have 500 million smallholder farmers who are getting affected by climate change. That is through droughts, floods, extreme rainfall and high temperatures. They’re losing their production. They’re losing their livestock, their crops, everything.”
According to Mukherji, agriculture also contributes to about one-third of overall global greenhouse emissions, and lowering this will reduce pressure on the agricultural system.
“If you take the whole agrifood system, that is from the time of production all the way to consumption and everything in between, like the pre-processing, the processing, the industrial part of it, it contributes about one-third, 33 percent of the global greenhouse gas emissions,” she said.
“One very low-hanging fruit is reducing loss and waste. So, when in the food system, almost one-third of the food is overall wasted or lost in production or during the consumption process. We buy food that we do not eat, reducing that would reach a huge amount of reduction in greenhouse gas emissions,” Mukherji said.
Emissions from agricultural systems can be mitigated if technologies such as solar energy and recycled water are implemented. Abdulrahman bin Shalhoub
Emissions from agricultural systems can also be mitigated if technologies such as solar energy and recycled water are implemented on a wider scale, Maimunah Sharif, mayor of Kuala Lumpur, told Arab News.
“In Kuala Lumpur we are now doing composting and we are also doing urban farming. So, we are encouraging the community to be self-sufficient; we are using the composting and using the small areas in urban farming at the same time, using technology and hydroponics,” Sharif said.
Agriculture in developing countries has suffered from the impacts of climate change. In Senegal, the environmental crisis has led the country to secure food for its population by importing produce from other countries.
Baba Drame, technical adviser on sustainable development at Senegal’s Environment Ministry, told Arab News: “Senegal is a very vulnerable country. As you may know, we are an LDC (least-developed country) and agriculture is one of the most important activities for the development of our country.
“The most important parts of the foods people use in my country are imported from other countries. We do our best in order to develop agriculture, mainly production of rice, corn and so on.
“But we are well affected by climate change because all our food system is based on the rain,” he added.
According to Drame, for the last two years, the rain in Senegal has been irregular, leaving the country facing food insecurity.
Transforming food systems involves rethinking consumption patterns. The global food system is heavily reliant on animal agriculture, which contributes significantly to emissions.
Shifting toward plant-based diets and reducing food waste can dramatically decrease the carbon footprint associated with food production.
“In many parts of the world, particularly in the high-income countries, there is a very high consumption of animal-sourced proteins, and those are very high causes of emissions. So, eating a more sustainable, balanced diet that is plant-based would be a very good source of reducing emissions,” said Mukherji.
ACWA Power’s Al-Shuaibah solar project begins commercial operations in Saudi Arabia
ACWA Power owns a 35.01% stake in the initiative
Al-Shuaibah project’s success reflects ACWA Power’s growing investment and development portfolio
Updated 8 min 59 sec ago
MIGUEL HADCHITY
RIYADH: Saudi energy leader ACWA Power has achieved full commercial operation of its Al-Shuaibah 1 Solar Photovoltaic Project, a 600-megawatt renewable initiative.
ACWA Power received formal notice on Nov. 12 from the project company saying that the Saudi Power Procurement Co. has granted the commercial operation certificate for the entire initiative capacity, clearing the way for full-scale production, according to a statement on the Saudi Stock Exchange.
The Al-Shuaibah 1 Solar Project aligns with ACWA Power’s vision to contribute to the Kingdom’s renewable energy targets and underscores its role as a leading provider of sustainable energy solutions in the region.
ACWA Power owns a 35.01 percent stake in the initiative, and the firm anticipates that the financial impact of this milestone will be reflected in its fourth-quarter financial results for 2024.
The achievement comes following a particularly successful year for ACWA Power. For the first nine months of the year, the company reported a robust 16 percent increase in profits, underpinned by growth in its power and water production operations.
Net profit attributable to equity holders reached SR1.25 billion ($334 million), compared to the same period in 2023, supported by a 12.5 percent rise in operating income, which hit SR2.36 billion.
The performance was largely driven by strategic financial moves, including an investment profit from restructuring a project and a capital recycling gain, enabling ACWA Power to efficiently reinvest capital for further growth.
The Al-Shuaibah project’s success reflects ACWA Power’s growing investment and development portfolio. Over the past nine months, the company has achieved financial closure on seven major undertakings with a combined worth of SR31 billion.
These include initiatives in Saudi Arabia, such as the Taiba and Qassim Combined Cycle Gas Turbine projects, which are expected to enhance the Kingdom’s power grid stability and efficiency.
Other recent undertakings include the Tashkent Solar PV project in Uzbekistan, part of ACWA Power’s broader commitment to renewable energy development in Central Asia, and the Hassyan Seawater Reverse Osmosis plant in the UAE, which is aimed at bolstering the country’s water security and desalination capabilities.
ACWA Power has been working internationally, cementing its global presence and expanding its investment footprint, in addition to its operational achievements.
At the Future Investment Initiative in Riyadh in October, the company signed four agreements valued at a combined SR6.69 billion, enhancing its capital base and project pipeline.
The contracts include a $690 million framework deal with the National Bank of Kuwait, providing corporate finance facilities that will support ACWA Power’s projects in the Kingdom, Kuwait, and other targeted markets.
Further diversifying its financing sources, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund solar projects in Uzbekistan.
Uzbekistan has emerged as a key market for ACWA Power in recent years, with the company playing a central role in the country’s transition toward renewable energy.
Rounding out its expansion efforts, ACWA Power entered into a $54 million research and development agreement with China’s Lujiazui Administration Bureau, targeting innovation in advanced energy solutions.
The research and development pact will establish a center in Shanghai focused on advancing technologies in solar, wind, and energy storage, as well as green hydrogen and desalination areas that are pivotal to addressing global energy and water challenges.
COP29: Czech Republic, Italy push for increased nuclear power
Updated 13 November 2024
Nirmal Narayanan
RIYADH: Nuclear power is essential to achieving global climate goals as it provides a clean and safe energy source, world leaders stated at COP29 in Baku.
Speaking on the second day of the summit’s High-Level Segment, the Czech Republic’s Prime Minister Petr Fiala emphasized the importance of nuclear power for the future, adding that his country is prepared to assist other nations in advancing this form of energy.
“We will discontinue coal, and we will push for renewables and nuclear power. Nuclear power is essential to meet our climate goals, as it produces extremely clean energy and is also very safe. The Czech Republic has over 50 years of experience in nuclear power, and we are ready to assist any country,” said Fiala.
He also warned that climate change could worsen critical global issues, including health, poverty, and hunger, advocating for collective resilience.
“We must not give up. The Czech Republic is ready to do its part to prevent suffering and increase the chances for a good life for all,” he added.
Italian Prime Minister Giorgia Meloni echoed similar sentiments, calling for a united global effort to combat climate change for the sake of future generations.
She also emphasized that embracing new technologies and energy sources, such as nuclear power, is key to achieving climate goals.
“In Dubai, we set ambitious goals, tripling the use of renewables by 2030. Reaching these goals requires everyone’s cooperation and adequate financial support,” said Meloni.
She continued: “Technology neutrality is the right approach, and currently, there is no single alternative to fossil fuels. Population growth will increase the demand for energy, so we need an energy mix in the transition process. We must use all energy sources, including nuclear fusion in the future.”
Greek Prime Minister Kyriakos Mitsotakis highlighted Greece’s role in energy transition, with nearly 50 percent of its electricity now derived from wind and solar, and emissions down 45 percent since 2005.
“Our emissions are down 45 percent compared to 2005. Lignite once accounted for more than 50 percent of our power generation, but its share is now just 6 percent. We now rely on wind and solar for almost half of our electricity. We are insulating our houses and building a carbon capture value chain for our industry,” he said.
Greek Prime Minister Kyriakos Mitsotakis. Supplied
Mitsotakis acknowledged Europe’s leadership in the green transition, as it accounts for only 6 percent of global emissions, but urged greater resources to counter “unprecedented climate shocks.”
“We cannot focus so much on 2050 that we forget 2024. We need more resources to prepare to respond in time, to save lives and livelihoods and to help people and communities rebuild after disasters,” said Mitsotakis.
The Greek prime minister outlined four urgent priorities for Europe: recognizing the trade-offs of energy transition, encouraging regulatory flexibility, unifying the European energy market, and supporting industry adaptation to climate goals.
“Each country must choose its own ambitious path to achieve climate targets. We must allow innovation to do its work,” he noted.
Croatian Prime Minister Andrej Plenkovic also emphasized Croatia’s commitment to decarbonizing its energy system and accelerating renewable adoption.
“Our achievements in the renewable energy sector show our dedication. Our efforts show that economic growth and environmental stability can coexist,” said Plenkovic.
Oil Updates – market sees losses on tight supply but cloudy demand caps gains
Updated 13 November 2024
Reuters
SINGAPORE: Oil prices edged up on Wednesday on signs of near-term supply tightness but remained near their lowest in two weeks, a day after OPEC downgraded its forecast for global oil demand growth in 2024 and 2025.
Brent futures rose 17 cents, or 0.24 percent, to $72.06 a barrel by 7:20 a.m. Saudi time, while US West Texas Intermediate crude futures gained 14 cents, or 0.21 percent, at $68.26.
“Crude oil prices edged higher as tightness in the physical market offset bearish sentiment on demand. Buyers in the physical market have been particularly active, with any available cargoes being snapped up quickly,” ANZ analysts said in a note.
But falling demand projections and weakness in major consumer China continued to weigh on market sentiment.
“We may expect prices to consolidate around current levels for longer,” said Yeap Jun Rong, market strategist at IG, adding the recent attempt for a bounce was quickly sold into.
“The absence of a more direct fiscal stimulus out of China has been casting a shadow on oil demand outlook, coupled with the prospects of higher US oil production with a Trump presidency and looming OPEC+’s plans for an output raise,” Yeap added.
In its monthly report on Tuesday, the Organization of Petroleum Exporting Countries said world oil demand would rise by 1.82 million barrels per day in 2024, down from growth of 1.93 million bpd forecast last month, mostly due to weakness in China, the world’s biggest oil importer.
Oil prices settled up 0.1 percent on Tuesday following the news, after falling by about 5 percent during the two previous sessions.
OPEC also cut its 2025 global demand growth estimate to 1.54 million bpd from 1.64 million bpd.
The International Energy Agency, which has a far lower view, is set to publish its updated forecast on Thursday.
“The re-election of former President Trump is unlikely to materially affect oil market fundamentals over the near term, in our view,” Barclays analysts wrote.
“Drill, baby, drill: this is likely to underwhelm as a strategy to drive oil prices materially lower over the near term” given that the stock of approved permits actually rose under the Biden administration, the analysts said.
However, markets would still feel the effects of a supply disruption from Iran or a further escalation between Iran and Israel, according to Barclays.
Donald Trump’s expected secretary of state pick, US Senator Marco Rubio, is known for his hard-line stance on Iran, China and Cuba. Tighter enforcement of sanctions on Iran could disrupt global oil supply, while a tougher approach to China could further weaken oil demand in the world’s largest consumer.
Two US central bankers said on Tuesday that interest rates are acting as a brake on inflation that is still above the 2 percent mark, suggesting that the Federal Reserve would be open to further interest rate cuts.
The Fed cut its policy rate last week by a quarter of a percentage point to the 4.50 percent-4.75 percent range. Interest rate cuts typically boost economic activity and energy demand.
US weekly inventory reports have been delayed by a day following Monday’s Veterans Day holiday. The American Petroleum Institute industry group data is due at 00:30 a.m. Saudi time on Thursday.
Analysts polled by Reuters estimated on average that crude inventories rose by about 100,000 barrels in the week to Nov. 8.
COP29 Day 3: World leaders address urgent climate goals at high-level session
Updated 30 min 1 sec ago
Arab News
RIYADH: World leaders entered their third day of climate talks at COP29 in Baku, marking a critical juncture in discussions focused on climate action and multilateral cooperation.
The High-Level Segment continued with addresses from heads of state and government as countries reiterated commitments to combat climate change.
As COP29 progresses, world leaders are expected to announce further initiatives to address climate threats through collaborative, international approaches.
Here is a summary of events in Baku.
11:35 a.m. – Russia and US among countries to reaffirm climate action
Russian Prime Minister Mikhail Mishustin. Screenshot
Russian Prime Minister Mikhail Mishustin used his speech to reiterate his country’s climate efforts, noting: “Russia remains committed to low carbon development,” and pledged ongoing collaboration on international climate goals.
John Podesta, representing the US, asked: “Do we secure sustainable prosperity for our countries, or do we condemn our most vulnerable to unimaginable climate disasters?”
Daniel Risch, Prime Minister of Liechtenstein, highlighted the global commitment, noting: “The presence of so many states from around the world is a powerful sign that the fight against climate change is a key challenge of our time.”
He stressed the need for “bold steps” against the security, economic, and social issues exacerbated by climate change and reaffirmed Liechtenstein’s dedication to its commitments.
Morocco’s Prime Minister, Aziz Akhannouch, underscored his country’s role in the energy transition, stating: “Morocco has for many years played a major role in the energy transition at the international, national and continental levels.”
He announced plans to raise decarbonization targets in Morocco’s NDCs and warned: “Natural disasters due to global warming are causing considerable economic and human loss, and affecting food security, healthcare facilities, and access to safe water.”
Prime Minister Russell Dlamini of Eswatini pointed out the worsening climate impacts, referencing the World Meteorological Organization’s warning of an “80 percent chance that global temperatures will exceed 1.5 degrees Celsius above pre-industrial levels within the next five years.”
Similarly, Prime Minister Mark Brown of the Cook Islands said: “The world is warming, and the transition away from fossil fuels is non-negotiable.”
Prime Minister Judith Suminwa of the Democratic Republic of the Congo said: “We are gathered here today at COP29 at a time when our planet is dealing with an unprecedented climate emergency.”
Albanian Prime Minister Edi Rama delivered a sharp critique at COP29, calling on participating countries that are speaking without action, while underscoring the disconnect between rhetoric and reality in the global fight against climate change.
“Life goes on with its old habits, and our speeches full of good words about fighting climate change change nothing,” said Rama.
He pointed out that despite the ambitious goals set in previous climate summits, global carbon emissions have actually increased on an annual basis, reflecting a lack of genuine progress.
Rama highlighted Albania’s commitment to sustainability, noting its 100 percent renewable energy production. However, he questioned the impact of smaller nations’ efforts in the face of continued inaction by the world’s biggest polluters.
“I come here from a little country in the middle of Europe, Albania, where we have 100 percent renewable energy production. But what does it mean for the future of the world if the biggest polluters continue business as usual?” he asked, emphasizing the need for coordinated global action.
In a candid assessment, Rama expressed frustration at the repetitive nature of international climate conferences, which he argued have failed to produce concrete results.
“Far be it from me to lecture anyone, after all, we are used to being lectured, not to lecturing others,” he said. “But my point is, what on earth are we doing in these gatherings over and over if there is no common political will on the horizon to go beyond words and unite for meaningful action?”
Rama also criticized the absence of key players from the event, suggesting that the decision of major and minor countries to boycott the summit undermines its credibility and raises questions about the seriousness of global commitments.
“Adding insult to injury, major and minor players even boycotted this ample global event,” he said.
10:40 a.m. – Calls for increased nuclear power growing
Czech Republic’s Prime Minister Petr Fiala. Supplied
The Czech Republic’s Prime Minister Petr Fiala emphasized the importance of nuclear power for the future, adding that his country is prepared to assist other nations in advancing this form of energy.
“We will discontinue coal, and we will push for renewables and nuclear power. Nuclear power is essential to meet our climate goals, as it produces extremely clean energy and is also very safe. The Czech Republic has over 50 years of experience in nuclear power, and we are ready to assist any country,” said Fiala.
His comments were echoed by the Italian Prime Minister Giorgia Meloni.
10:00 a.m. – All energy sources should be used to cope with population rise – Italian PM
Screenshot
In her address to COP29, Italian Prime Minister Giorgia Meloni warned that population growth will increase energy demand.
“We need an energy mix in the transition process. We must use all energy sources, biogas, gas and even nuclear fusion in the future,” she said.
Meloni believes that technology neutrality is the right approach, and currently, there is no single alternative to fossil fuel supply.
9:46 a.m. – Day 3 begins with more world leaders addressing the conference
Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah emphasized his country’s long-term strategy for environmental sustainability and carbon reduction, stating that climate change “is a global concern and a threat to many countries.”
Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah. Screenshot
Highlighting the visible impacts of climate change, he cited “rising temperatures, dust storms, and heavy rain” as growing challenges in the region.
Kuwait aims to achieve net zero emissions by 2060, supported by strategic initiatives and a significant shift toward renewable energy. The country plans to generate 50 percent of its electricity from solar power, a major component of its national sustainability efforts, Al-Sabah said.
The session opened with Shina Ansari, Iran’s vice president, followed by Joseph Owondault Berre, Gabon’s vice president. Berre underscored the importance of multilateralism, calling it “the only weapon that can tackle issues associated with climate change.”
He emphasized the need for “collective action based on trust, fairness, and shared responsibility,” highlighting that global collaboration remains critical in addressing climate impacts equitably.
HRH Minister of Energy Heads the Kingdom's Delegation to the 29th Conference of the Parties to the UNFCCC #COP29.
