RCU showcases environmental, social, and economic milestones in 1st annual sustainability report

RCU showcases environmental, social, and economic milestones in 1st annual sustainability report
Visitor satisfaction across the heritage sites reached 96 percent while maintaining the integrity of AlUla’s cultural and historical landmarks. (Shutterstock)
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Updated 20 October 2024
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RCU showcases environmental, social, and economic milestones in 1st annual sustainability report

RCU showcases environmental, social, and economic milestones in 1st annual sustainability report
  • The report highlighted the successes of RCU’s journey and its commitment to responsible development

RIYADH: The Royal Commission for AlUla has unveiled its first Annual Sustainability Report, marking a milestone in the commission’s ongoing efforts to transform the region into a global destination for cultural, social, environmental, and economic sustainability.

The report highlighted the successes of RCU’s journey and its commitment to responsible development aligned with national and global sustainability frameworks, including the Saudi Green Initiative, Vision 2030, as well as UN goals.

According to RCU’s Governor Prince Badr bin Abdullah bin Farhan – who also serves as the Kingdom’s Minister of Culture – the commission is on an “ambitious journey to achieve the goals of the AlUla Vision, emanating from the spirit of Saudi Vision 2030.”

He added: “Our first Sustainability Report is a testament to our commitment to sustainability. It showcases our ambitions, goals, and activities in this field for our generation and the ones to come.”

Key achievements: Sustainability in action

The report highlighted RCU’s transformative achievements, notably raising AlUla’s Heritage Sustainability Index to 75 percent, surpassing its initial target of 63 percent.

Visitor satisfaction across the heritage sites reached 96 percent, reflecting the commission’s focus on delivering exceptional experiences while maintaining the integrity of AlUla’s cultural and historical landmarks.

RCU has also made considerable strides in social and educational development. Over the past year, the commission has provided 747 university scholarships to local students, enabling them to study in 117 international institutions.

This initiative is part of RCU’s broader goal of investing in the local community and empowering the next generation.

These educational efforts align with the commission’s vision to enhance the natural and social potential of our people and place, ensuring a sustainable future for the many aspects of life in AlUla, as noted by Abeer Al-Akel, acting CEO of RCU.

Community satisfaction also stands at 90 percent, reflecting the success of initiatives such as the Hammayah Programme, which has trained 1,400 local leaders and generated 2,500 employment opportunities.

Economic growth and job creation

Economic sustainability remains central to RCU’s long-term vision. By the end of 2023, the commission had created over 6,000 jobs in tourism-related sectors, with 1,500 jobs directly in the industry.

In addition, RCU’s Vibes AlUla initiative, which supports local entrepreneurs, led to the establishment of 336 new micro, small, and medium-sized enterprises and created 198 new local job opportunities.

The report emphasized RCU’s continued focus on sustainable economic development through partnerships with both local and international stakeholders.

As Al-Akel highlighted: “By promoting sustainable livelihoods, supporting local businesses and employment, and driving economic diversification, we aim to build a resilient and thriving economy in line with the objectives of Vision 2030.”

Green and climate-neutral initiatives

Aligned with Vision 2030 and the Saudi Green Initiative, RCU is pursuing a climate-neutral future, with a target to achieve carbon neutrality by 2035.

In 2023, the commission made significant strides in this direction through a number of innovative environmental projects.

These include planting over 111,000 trees in protected areas, converting agricultural waste into fertilizer, and expanding water distribution networks to achieve 95 percent coverage for AlUla’s population.

Another achievement from the report is the commission’s focus on green mobility. RCU has partnered with Lucid Motors to introduce electric vehicles to the region, including a fleet of 30 EVs and the installation of 10 charging stations across AlUla.

These efforts aim to reduce carbon emissions and provide sustainable transportation solutions for both residents and visitors.

As part of its nature conservation efforts, RCU has reintroduced several native species to the AlUla ecosystem. The report noted that 108 Arabian gazelles, 385 Sand gazelles, 328 Arabian oryxes, and 59 Nubian ibexes were released into the wild, contributing to biodiversity and the overall health of the local environment.

RCU’s Arabian Leopard Conservation Breeding Programme, which saw the birth of seven new cubs, also continued to play a pivotal role in protecting the critically endangered species.

Global partnerships: A collaborative approach to sustainability

One of the key strengths of RCU’s approach is its collaboration with world-leading organizations.

The report underscored RCU’s partnerships with UNESCO, the International Union for Conservation of Nature, and King Abdullah University of Science and Technology to promote conservation and sustainability.

These partnerships helped in the development of innovative solutions that enhance sustainability across all dimensions – environmental, social, cultural, and economic.

Prince Badr emphasized the importance of these collaborations, noting in the report: “Innovative solutions were adopted and important local, regional and international partnerships were forged with organizations.”

The collaborations included UNESCO for the protection of cultural heritage, IUCN for the promotion of comprehensive regeneration, and Red Sea Global in the areas of sustainability and environmental initiatives.

There were also partnerships with Space for Giants for the protection of biodiversity, Artefact for driving artificial intelligence and data transformation, and Thales Group.

With the release of this annual sustainability report, the commission is aiming to continue building on its sustainability successes as it transforms AlUla into a model of sustainable development for the Kingdom and the world.

In the report, Al-Akel underscored RCU’s role as a leader in the field, saying: “By protecting the cultural heritage from our past, and enhancing the natural and social potential of our people and place, we ensure a sustainable future for the many aspects of life in AlUla.”


Moody’s upgrades Saudi Arabia’s rating on strong diversification progress and fiscal prudence

Moody’s upgrades Saudi Arabia’s rating on strong diversification progress and fiscal prudence
Updated 33 sec ago
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Moody’s upgrades Saudi Arabia’s rating on strong diversification progress and fiscal prudence

Moody’s upgrades Saudi Arabia’s rating on strong diversification progress and fiscal prudence
  • Saudi Arabia’s local and foreign currency medium-term note program ratings was also upgraded to (P)Aa3 from (P)A1

RYADH: Global credit ratings agency Moody’s Ratings upgraded Saudi Arabia’s long-term local and foreign currency issuer and senior unsecured ratings to Aa3 from A1, taking note of the Kingdom’s progress in diversifying its economy.

Saudi Arabia’s local and foreign currency medium-term note program ratings was also upgraded to (P)Aa3 from (P)A1.

“Continued progress will, over time, further reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition,” the ratings agency said.

“The recent fiscal space exercise and recalibration and reprioritization of diversification projects – which will be regularly reviewed – will provide a more conducive environment for sustainable development of the kingdom’s non-hydrocarbon economy and help preserve the relative strength of the sovereign’s balance sheet.”

Moody’s expects Saudi Arabia’s non-hydrocarbon private sector GDP to continue expanding by about 4 percent to 5 percent in the coming years, among the highest in the Gulf region, as its diversification strategy reduces the Kingdom’s exposure to oil market developments and long-term carbon transition over time.

“Our baseline projections assume there will be no significant downward pressure to oil prices or production over the next few years. We also assume that heightened geopolitical tensions in the region, which are having a limited impact on Saudi Arabia so far, will not escalate into a full-scale military conflict between Israel and Iran with collateral effects that could affect the kingdom’s ability to export oil or deter private sector investment supporting the diversification momentum,” Moody’s said.

Saudi Arabia has invested heavily to induce growth in the non-hydrocarbon private sector, particularly that of the Public Investment Fund’s (PIF) outlays for capital expenditure and domestic investments.

“We estimate that the total spending on projects and long-term investments by the government and PIF will continue to exceed 20 percent of non-hydrocarbon GDP. Private consumption growth will also be strong, as the design of many ongoing projects, including the PIF’s giga projects and other large-scale projects of the government, incorporates commercialization phases that will boost supply-side capacity in the services sector, particularly in hospitality, leisure and entertainment, retail and restaurants,” Moody’s said.

The ratings agency also noted while Saudi Arabia’s fiscal prudence as well as recalibration and reprioritization of projects may affect project implementation and the development of the non-hydrocarbon sectors, “the focus on macroeconomic and fiscal sustainability is credit positive.”

“Regularly reviewing projects to maximize the economic impact on the domestic economy and develop a domestic industrial base and related ecosystems will help the non-hydrocarbon economy develop more sustainably,” Moody’s said.


Citi gets license for regional headquarters in Saudi Arabia, memo shows

Citi gets license for regional headquarters in Saudi Arabia, memo shows
Updated 22 November 2024
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Citi gets license for regional headquarters in Saudi Arabia, memo shows

Citi gets license for regional headquarters in Saudi Arabia, memo shows
  • Wall Street giant received the approval from the Ministry of Investment Saudi Arabia

RIYADH: US bank Citigroup has received approval to establish its regional headquarters in Saudi Arabia’s Riyadh, according to an internal memo seen by Reuters on Friday.
The Wall Street giant received the approval from the Ministry of Investment Saudi Arabia (MISA), according to the memo.
“This marks a significant leap forward for our franchise in Saudi Arabia and we look forward to our continued growth in the kingdom,” Citi Saudi Arabia CEO Fahad Aldeweesh said in the memo.
Bloomberg News reported the development earlier in the day.
Wall Street titan Goldman Sachs also received a license in May to set up its regional headquarters in Saudi Arabia’s Riyadh.


Saudi Arabia joins global hydrogen fuel partnership

Saudi Arabia joins global hydrogen fuel partnership
Updated 22 November 2024
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Saudi Arabia joins global hydrogen fuel partnership

Saudi Arabia joins global hydrogen fuel partnership

RIYADH: Saudi Arabia has joined a key international alliance designed to enhance cooperation around the development and deployment of hydrogen and fuel cell technologies.

The International Partnership for the Hydrogen and Fuel Cell Economy works to deliver a balanced and effective global transition to cleaner and more efficient energy systems.

The Kingdom’s Ministry of Energy announced Saudi Arabia had signed up to the organization, with a press release saying the move represents a new step that confirms the “pioneering role” that the Kingdom is playing in international efforts aimed at enhancing sustainability and “innovating advanced solutions” in the fields of clean power.

Saudi Arabia has pledged to achieve zero neutrality in terms of carbon emissions by 2060, as well as becoming one of the world’s most important producers and exporters of clean hydrogen.

The press release added: “The Kingdom’s accession to this partnership confirms its firm vision regarding the role of international cooperation and its importance in achieving a more sustainable energy future.”

The IPHE was originally launched in 2003 by the US, and has two active working groups covering Education & Outreach, and Regulations, Codes, Standards, & Safety.


COP29 enters final hours amid key negotiations on climate finance and carbon markets

COP29 enters final hours amid key negotiations on climate finance and carbon markets
Updated 22 November 2024
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COP29 enters final hours amid key negotiations on climate finance and carbon markets

COP29 enters final hours amid key negotiations on climate finance and carbon markets

BAKU: As COP29 nears its conclusion, negotiators are working intensively to finalize agreements that could significantly advance global climate action. 

Hosted in Baku, Azerbaijan, the conference has focused on critical issues such as climate finance, adaptation strategies, and the operationalization of carbon markets under the 2015 Paris Agreement. 

Although decisions remain in draft form, the discussions signal progress on aligning global efforts with the urgent need to combat the climate crisis.

Saudi Arabia has emerged as a key player, leveraging its growing diplomatic influence and domestic climate initiatives to shape the outcomes.

Push for equitable climate finance

One of the most pressing topics at COP29 has been the New Collective Quantified Goal on climate finance. 

Negotiators are seeking to establish a framework that mobilizes $1.3 trillion annually by 2035 to support developing nations in addressing climate change. 

This new goal reflects the escalating financial demands of both mitigation and adaptation efforts, with developing countries requiring $215 billion to 387 billion annually for adaptation alone through 2030.

Saudi Arabia has been a vocal advocate for equitable financing mechanisms, emphasizing the need for practical pathways to unlock funds for countries that bear the brunt of climate impacts yet have limited resources. 

The Kingdom has supported calls for reforming global financial institutions to reduce barriers such as high borrowing costs and restrictive conditions. This aligns with Saudi Arabia’s broader position that climate finance must be accessible and targeted to the most vulnerable nations.

Domestically, Saudi Arabia has backed its advocacy with action. The Kingdom has committed significant investments to its Saudi Green Initiative, which includes billions of dollars for renewable energy projects, reforestation, and environmental restoration. 

These initiatives underscore Saudi Arabia’s dual focus on addressing domestic climate challenges and contributing to global solutions, according to the draft resolution. 

“Through initiatives like the Saudi Green Initiative, the Kingdom has committed to reducing regional emissions by more than 10 percent and leading the planting of 50 billion trees across the Middle East to combat desertification and foster environmental sustainability,” the document stated.

Speeches came to an end as negotiations at COP29 in Baku reached their final hours. AN Photo/Abdulrahman Bin Shulhub

Carbon Markets: A Saudi priority

Discussions on Article 6 of the Paris Agreement, which governs international carbon trading, have been another focal point of COP29. 

Saudi Arabia has taken a prominent role in shaping the rules for carbon markets, advocating for frameworks that promote transparency and equitable participation.

Under Article 6.2, which covers bilateral cooperation, and Article 6.4, which establishes a centralized mechanism for trading carbon credits, Saudi negotiators emphasized the importance of avoiding double-counting emissions reductions and ensuring environmental integrity. 

These safeguards are essential for building trust in the carbon market as a tool for accelerating emissions reductions.

In the draft resolution on financing released by the UN Framework Convention on Climate Change it is outlined that “Saudi Arabia emphasizes the importance of transparency and equitable participation in Article 6 mechanisms, ensuring that developing nations can benefit from international carbon trading frameworks.”

The Kingdom’s engagement in these discussions reflects its broader ambition to become a regional hub for carbon trading. The Kingdom is advancing projects in carbon capture, utilization, and storage, positioning itself as a leader in leveraging market-based solutions to achieve climate goals. 

These efforts align with the Saudi Green Initiative’s targets for emissions reductions and renewable energy expansion.

A commitment to adaptation

While mitigation often dominates global climate discussions, COP29 has seen renewed attention to adaptation – an area where Saudi Arabia has also contributed actively.

Negotiators are working to refine the Global Goal on Adaptation by developing measurable indicators to track progress.

These metrics aim to ensure that adaptation efforts are effective and responsive to the needs of vulnerable communities.

“Saudi Arabia continues its focus on promoting energy efficiency, a critical pillar of its sustainability agenda, as highlighted by top officials during COP29 discussions,” reads the draft resolution.​

The Kingdom has supported these efforts, emphasizing the importance of integrating local knowledge and traditional practices into adaptation strategies. The Kingdom’s approach aligns with its domestic priorities, which include enhancing resilience to desertification and water scarcity, challenges exacerbated by its arid climate, the document added.

Inclusivity and collaboration

Inclusivity has been a central theme at COP29, and Saudi Arabia has demonstrated its commitment to ensuring diverse voices are part of the climate conversation. The Kingdom supported the draft Baku Workplan, which aims to elevate indigenous peoples and local communities in climate governance.

Domestically, Saudi Arabia has prioritized inclusivity through education and workforce development programs that prepare youth and women for leadership roles in green industries. 

These initiatives are part of broader reforms under Vision 2030, which aims to diversify the economy while ensuring equitable opportunities for all citizens.

COP29 began on Nov. 11. AN Photo/Abdulrahman Bin Shulhub

Regional leadership

Saudi Arabia’s influence extends beyond its national borders. Through the Middle East Green Initiative, the Kingdom is fostering regional cooperation to combat climate change.

The initiative includes ambitious goals to plant 50 billion trees across the Middle East and reduce regional emissions by more than 10 percent.

At COP29, these efforts were presented as examples of how regional action can amplify global progress.

By working closely with other Gulf Cooperation Council countries, Saudi Arabia is also driving investments in renewable energy projects that enhance energy security and sustainability. 

These partnerships underscore the Kingdom’s role as a regional leader in climate action, capable of catalyzing collective efforts to address shared challenges.

Challenges and opportunities ahead

As COP29 approaches its conclusion, much remains to be finalized. The draft decisions on climate finance, carbon markets, and adaptation reflect significant progress but also underscore the complexity of reaching consensus among diverse stakeholders.

Saudi Arabia’s contributions to these discussions demonstrate its ability to balance domestic priorities with international leadership. By advocating for equitable solutions, advancing regional cooperation, and showcasing its own climate successes, the Kingdom has positioned itself as a key player in shaping the global response to climate change.

The conference has marked an important step forward in the global fight against climate change. The agreements under discussion – particularly those on finance and carbon markets – highlight the growing recognition that collective action is essential to achieving the Paris Agreement’s goals.

Saudi Arabia’s active participation in these negotiations underscores its evolving role as a climate leader. 


Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive

Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive
Updated 22 November 2024
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Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive

Saudi cement sales up 5% to 12.84m tonnes amid sustainability drive

RIYADH: Cement sales in Saudi Arabia saw an annual increase of 4.93 percent in the third quarter of 2024, reaching 12.84 million tonnes, according to recent data.

Figures released by Al-Yamama Cement showed that 96.18 percent of these sales were domestic, with only 3.82 percent being exported.  

The data covers 17 Saudi cement companies, with Al-Yamama Cement holding the largest share of domestic sales at 12.47 percent, amounting to 1.54 million tonnes, despite experiencing a 27.18 percent decline during the period.

With the successful acquisition of Hail Cement Company by Qassim Cement Company, QCC now leads the market with the highest share among its peers at 13.37 percent, or 1.65 million tonnes, moving Al-Yamama Cement to second place.

Saudi Cement, Southern Cement and Yanbu Cement held 8.96 percent, 8.49 percent and 8.18 percent shares of the domestic market respectively.

The highest growth in domestic sales was recorded by Umm Al-Qura Cement, which saw a 69 percent increase to 372,000 tonnes during this period, despite holding a relatively small 3 percent market share.

City Cement’s local sales rose by 52.69 percent annually to 739,000 tonnes, while Tabuk Cement experienced a 27.3 percent increase, reaching 429,000 tonnes.  

In terms of cement exports, Saudi Cement dominated with 80.45 percent of total shipments, amounting to 395,000 tonnes this quarter.  This figure represents a 13.18 percent increase compared to the same quarter last year.   

Najran Cement accounted for 11 percent of exports for the quarter, totaling 54,000 tonnes, marking a 24 percent decline. Eastern Cement with 8.55 percent share saw a 133 percent rise in exports, reaching 42,000 tonnes. 

Saudi Arabia also exported 1.08 million tonnes of clinker during this period, marking a 41 percent decline compared to the same period last year.

Clinker, a crucial intermediate product in cement production, is commonly exported due to its cost-effectiveness. It is more economical to ship it to other countries for final processing into cement than to produce the finished product and then export.

According to a report by AlJazira Capital, the total utilization rate of the cement sector in Saudi Arabia stood at 72.8 percent in September. 

This figure represents the proportion of the cement production capacity that is actively being used to meet demand.

A utilization rate of 72.8 percent indicates that, on average, the cement industry in Saudi Arabia is using just over two-thirds of its available production capacity.

Saudi Arabia is a prominent player in the global cement industry, ranking among the top 10 producers worldwide. The Kingdom’s production capacity has been bolstered by significant investments to meet both domestic demand and export opportunities.

Key factors driving Saudi Arabia’s cement industry include its robust infrastructure development, housing projects, and initiatives under Vision 2030, which aim to diversify the economy and reduce reliance on oil revenues.

Saudi Arabia’s path to decarbonization

In October, Saudi Arabia’s cement sector took a significant leap towards decarbonization with the announcement of a joint venture between the UK’s Next Generation SCM and Nizak Mining Co., a subsidiary of City Cement.

The collaboration is focused on producing supplementary cementitious materials locally, utilizing an innovative, energy-efficient technology.

This new method requires only one-sixth of the fuel compared to conventional cement production and operates at lower temperatures, significantly reducing operational costs and carbon emissions.

The technology already demonstrates a 99 percent reduction in emissions, producing just 8 kg of CO2 per tonne of calcined clay, compared to the global average of 600 kg per tonne.

The joint venture is part of the Kingdom’s broader decarbonization strategy, which is aligned with Vision 2030 and the Saudi Green Initiative.

As part of these proposals, the Kingdom has set an ambitious goal of cutting carbon emissions by 278 million tonnes annually by 2030.

This venture, which will have its first production plant in Riyadh, is expected to produce up to 700,000 tonnes of low-carbon supplementary cementitious materials in its second year of operations, starting in 2025.

The project is also crucial for the domestic production of low-carbon concrete, as traditional SCM alternatives, like fly ash and slag, are not readily available in Saudi Arabia.

The venture will not only help Saudi Arabia meet its sustainability targets but also strengthen its position as a regional hub for low-carbon materials, generating both economic and environmental benefits.

Speaking in October, Majed Al-Osailan, CEO of City Cement, emphasized the long-term impact of the project, stating that it will create jobs, improve access to sustainable building materials, and create export opportunities for the Kingdom.

According to a study by the Boston Consulting Group in September, Saudi Arabia stands to gain a significant competitive advantage in the global cement industry as the sector moves toward decarbonization through carbon capture and storage.

The competitive dynamics of the industry are shifting due to the high costs associated with CCS, which is essential for achieving net-zero emissions by 2050.

One of the primary factors influencing future competitiveness is a plant’s proximity to CO2 storage sites.

Cement plants located within 200 km of CCS hubs could see abatement costs reduced by half compared to those located farther away.

This geographical advantage will be crucial in determining cost competitiveness on a global scale.

Saudi Arabia, with its lower energy costs, is well-positioned to capitalize on this advantage according to the study. The Middle East, in general, benefits from cheaper energy, which could give Saudi plants a $20 per tonne cost advantage in CCS over the global median.

This would allow Saudi Arabia to emerge as a key export hub in the global cement market. 

Plants in the Kingdom that can minimize their CCS abatement costs will be internationally competitive, particularly as global trade dynamics shift and demand grows for low-carbon cement.

Moreover, Saudi Arabia’s energy infrastructure and strategic location near key shipping routes bolster its potential as a regional and global supplier of cement.

With substantial investments in CCS technology and renewables, the Kingdom could not only meet domestic demand but also serve international markets more efficiently, securing its position in the evolving global cement trade.

As the cost of CCS implementation rises, the global competitive landscape will be reshaped, with plants closer to CO2 storage hubs and renewable energy sources becoming more attractive.

Saudi Arabia’s competitive edge, therefore, lies in its ability to leverage its energy resources and strategic location, potentially making it a leader in the export of low-carbon cement solutions.