COP29 Day 3: World leaders address urgent climate goals at high-level session

COP29 Day 3: World leaders address urgent climate goals at high-level session
The High-Level Segment continued with addresses from heads of state and government as countries reiterated commitments to combat climate change. Supplied
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Updated 13 November 2024
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COP29 Day 3: World leaders address urgent climate goals at high-level session

COP29 Day 3: World leaders address urgent climate goals at high-level session
  • Kuwait aims to achieve net zero emissions by 2060, supported by strategic initiatives and a significant shift toward renewable energy
  • World leaders are expected to announce further initiatives to address climate threats through collaborative, international approaches

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.” 

11:05 a.m. – Our speeches change nothing, Albanian PM tells COP29




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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

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. 

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




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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.


Kingdom approves 2025 annual borrowing plan with SR139bn funding target

Kingdom approves 2025 annual borrowing plan with SR139bn funding target
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Kingdom approves 2025 annual borrowing plan with SR139bn funding target

Kingdom approves 2025 annual borrowing plan with SR139bn funding target
  • Strategic road map to manage country’s funding needs

RIYADH: Saudi Arabia’s Minister of Finance Mohammed Al-Jadaan on Sunday approved the annual borrowing plan for 2025, outlining a strategic road map for managing the Kingdom’s funding needs.

The plan, which has been endorsed by the National Debt Management Center’s board of directors, detailed developments in public debt in 2024, initiatives to strengthen local debt markets, and the 2025 funding framework, including a calendar for Saudi riyal-denominated sukuk issuances.

The projected funding requirement for 2025 is estimated at SR139 billion ($37 billion), according to a statement issued on Sunday.

The total encompasses two primary components: covering a fiscal deficit of SR101 billion, as highlighted in the Ministry of Finance’s official budget statement, and meeting the SR38 billion in principal repayments for debts maturing during the year.

To achieve its funding objectives, Saudi Arabia plans to enhance its access to both local and international financing channels and pursue innovative financing opportunities to stimulate economic growth, the statement added.

Moves will include private transactions such as export credit agency-backed initiatives, financing for infrastructure development, and capital expenditure projects.

The Kingdom will also explore opportunities to access new markets and issue debt in diverse currencies, depending on market conditions.


Closing Bell: Saudi main index slips to close at 12,069

Closing Bell: Saudi main index slips to close at 12,069
Updated 05 January 2025
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Closing Bell: Saudi main index slips to close at 12,069

Closing Bell: Saudi main index slips to close at 12,069

 

RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Sunday, shedding 32.73 points, or 0.27 percent, to close at 12,069.82.

The total trading turnover for the benchmark index amounted to SR4.21 billion ($1.12 billion), with 119 stocks advancing and 106 retreating.

The Kingdom’s parallel market Nomu registered a gain of 48.69 points, or 0.16 percent, closing at 31,054.38. Out of the stocks listed on Nomu, 38 advanced while 41 declined. The MSCI Tadawul Index also declined, dropping 7.32 points, or 0.48 percent, to close at 1,509.84.

Among the top performers of the day was Saudi Reinsurance Co., whose stock surged 9.94 percent to SR59.70. 

Salama Cooperative Insurance Co. also posted a strong performance, with its share price rising 8.44 percent to SR21.06, while Riyadh Cables Group Co. saw its stock climb 6.34 percent to SR151.00. 

However, National Medical Care Co. recorded the day’s steepest decline, falling 3.49 percent to SR160.40. Emaar The Economic City and the Power and Water Utility Co. for Jubail and Yanbu also experienced losses, with their share prices dropping 3.06 percent to SR18.38 and 2.93 percent to SR53.00, respectively.

In corporate news, Al-Yamamah Steel Industries Co. announced the signing of a SR97.5 million contract with the Saudi-based Trading & Development Partnership. The agreement involves the supply of steel towers for constructing a 380-kilovolt ultra-high voltage transmission line in the Eastern Region. 

The contract, which will commence in May 2025, is expected to reflect on the company’s financial results starting from the third quarter of 2025. 

Shares of Al-Yamamah Steel ended the session 6.25 percent higher at SR36.40.

The Saudi Industrial Development Co. disclosed that its subsidiary, Global Co. for Marketing Sleeping Systems, also known as Sleep High, has secured a Shariah-compliant SR9 million credit facility from Riyadh Bank. 

The financing, guaranteed under the Kafalah Program, will be utilized to support the subsidiary’s working capital needs. SIDC shares closed 0.67 percent higher at SR30.00.

Saudi Arabian Amiantit Co. signed a memorandum of understanding with the Libyan Development & Reconstruction Fund to collaborate on water technology transfer, sewage treatment, and pipe production. 

The one-year agreement aims to localize industries in Libya, create employment opportunities, and transfer manufacturing expertise. It also includes plans to establish joint factories specializing in fiberglass and polyethylene pipes, as well as valves, to support Libyan national projects. 

Shares of Amiantit rose 1.90 percent to close at SR29.40.

United International Holding Co. announced the extension of its memorandum of understanding with Nowpay Corp. for an additional two months. The partnership aims to establish a payroll administration and processing firm in Saudi Arabia. 

The venture, which will require an initial investment of SR75 million, will be 75 percent owned by United International Holding and 25 percent by Nowpay Corp. 

The company’s stock closed 0.75 percent higher at SR187.40.

National Gypsum Co. revealed that it has signed an Islamic financing agreement with Riyadh Bank valued at SR35 million. The funds will be directed toward expanding operations and upgrading production lines. The financing will last for one and a half years and is backed by promissory notes and a property mortgage. 

The company’s share price remained unchanged at SR22.16.


Saudi listed firms see growth in 2024 with ACWA Power and Al Rajhi as top performers

Saudi listed firms see growth in 2024 with ACWA Power and Al Rajhi as top performers
Updated 05 January 2025
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Saudi listed firms see growth in 2024 with ACWA Power and Al Rajhi as top performers

Saudi listed firms see growth in 2024 with ACWA Power and Al Rajhi as top performers

RIYADH: Saudi Arabia’s listed companies witnessed significant growth in 2024, with ACWA Power and Al Rajhi Bank emerging as the top performers on the Tadawul All Share Index.

ACWA Power Co. led the index, contributing 295 points, followed by Al Rajhi Bank with a 207-point increase, according to data from SNB Capital cited by Al-Ekhbariya.

ACWA Power’s stock surged from SR255.89 at the start of 2024 to SR401.4 by year-end, reflecting big growth. Similarly, Al Rajhi Bank’s stock rose from SR86.8 to SR94.6 during the same period. Other notable contributors included Saudi Research and Media Group, adding 44 points to the index, Elm Co. with 43 points, and Ma’aden with 40 points.

However, not all listed companies experienced gains in 2024. Saudi Aramco recorded a significant decline, losing 177 points on the index as its stock price dropped from SR140 to SR111.8. SNB Capital fell by 70 points, followed by SABIC with a 62-point decrease, Banque Saudi Fransi with 32 points, and Sahara International Petrochemical Co., or Sipchem, with 30 points.

The Kingdom’s initial public offering market also saw robust activity in 2024, with 14 IPOs raising SR14.21 billion ($3.7 billion), marking a 19 percent year-on-year increase.

Almoosa Health and Fakeeh Care Group led the IPO market in terms of size, with Fakeeh attracting the highest individual participation, drawing 1.34 million unique investors.

Despite overall success, individual subscriptions accounted for only 13 percent of the total IPO volume, amounting to SR1.94 billion.

Modern Mills Co. led in subscription coverage, achieving a rate of 21.9 times, while the average individual coverage for the year’s IPOs stood at 11.87 times.

The food production sector dominated IPO activity, contributing 26.9 percent of total listings in 2024, with successful debuts by companies such as Modern Mills, Al-Rabie, and Al Arabiya.

IPO valuations varied significantly, with an average price-to-earnings ratio of 34 times. United International Holding recorded the lowest P/E, while Nice One topped the charts with a P/E of 118 times, making it the year’s most expensive IPO.

Looking ahead, SNB Capital forecasts an 8 percent annual profit growth for companies listed on the Tadawul in 2025, with the petrochemical sector expected to lead the way with a 74 percent rise in profits.


Saudi Arabia records robust GFCF growth in Q3 2024, fueled by non-government sector investments

Saudi Arabia records robust GFCF growth in Q3 2024, fueled by non-government sector investments
Updated 05 January 2025
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Saudi Arabia records robust GFCF growth in Q3 2024, fueled by non-government sector investments

Saudi Arabia records robust GFCF growth in Q3 2024, fueled by non-government sector investments
  • Non-oil sectors grew by 4.3 percent year-on-year
  • Unemployment rate dropped to 3.7 percent

RIYADH: Saudi Arabia solidified its status as a regional investment leader with a 7.4 percent year-on-year growth in gross fixed capital formation in the third quarter of 2024, led by the non-government sector.

The Ministry of Investment reported an 8.3 percent increase in the non-government division, reflecting the Kingdom’s ongoing efforts to boost private sector participation in its diversifying economy.

Government-related entities contributed to the overall GFCF growth, with a 2.3 percent increase in the third quarter of 2024.

The non-government sector’s performance aligns with Saudi Arabia’s Vision 2030 objectives, which aim to shift the economy from oil dependency by fostering a vibrant private division. 

In line with these goals, the Ministry of Investment issued 3,810 investment licenses in Q3 2024, marking a significant 73.7 percent year-on-year increase.

Non-oil sectors grew by 4.3 percent year-on-year during the same period, further supporting the Kingdom’s economic diversification efforts.

Key sectors saw notable growth, including wholesale and retail trade, restaurants, and hotels rose 5.8 percent, and construction increased 4.6 percent. Transport and communication grew by 4.5 percent, and finance and real estate advanced by 4.2 percent, driven by consumer spending and a dynamic financial sector.

These expansions contributed to the Kingdom’s overall real gross domestic product growth of 2.8 percent year-on-year for the quarter, despite a marginal 0.05 percent increase in oil activities.

The real estate sector also played a pivotal role in the third quarter of 2024, with the Real Estate Price Index rising by 2.6 percent y-o-y. While residential property costs increased by 1.6 percent, commercial properties saw a more pronounced growth of 6.4 percent. However, agricultural real estate prices declined by 8.7 percent, reflecting sectoral disparities. 

Complementing these trends, real estate loans by banks witnessed a 13.3 percent year-on-year increase, showcasing heightened investor interest in property development and acquisitions. 

Saudi Arabia’s economic resilience is further evident in labor market improvements. The unemployment rate dropped to 3.7 percent in this period, a 0.5 percentage point decrease from the same quarter in 2023. The Saudi unemployment rate fell to 7.8 percent, a one percentage point decline year-on-year.


Global growth expected to reach 3.2% amid monetary easing: report

Global growth expected to reach 3.2% amid monetary easing: report
Updated 05 January 2025
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Global growth expected to reach 3.2% amid monetary easing: report

Global growth expected to reach 3.2% amid monetary easing: report
  • QNB forecasts US Federal Reserve to cut rates by 75 bps and the European Central Bank by 150 bps
  • It predicts growth of 2.2% in 2025, down from 2.6% in 2024

RIYADH: Global economic growth is set to accelerate in 2025 as monetary easing, US resilience, and recoveries in Europe and China drive momentum, with Southeast Asian economies benefiting from positive spillovers.

The Qatar National Bank projects a 3.2 percent global growth rate, outpacing Bloomberg’s consensus of 3.1 percent, the state’s news agency QNA reported.

In its latest commentary, QNB anticipates growth in major economies, driven by controlled inflation, eased financial constraints, and policy adjustments by central banks. Emerging markets, specifically the Association of Southeast Asian Nations economies, are set to benefit from these advancements.

The report said that analysts have consistently underestimated global economic performance, as initial projections for 2023 and 2024 fell short of realized growth by 80 and 40 basis points, respectively.

“Analysts and economists have been proving to be over pessimistic when it comes to forecasting major economies and global growth in recent years,” reported QNA.

The national bank added: “In fact, over the last two years, initial expectations for growth were 80 basis points and 40 bps below realized growth in 2023 and 2024, respectively.”

It forecasts the US Federal Reserve to cut rates by 75 bps and the European Central Bank by 150 bps.

“This should support further investment and consumption growth, as credit becomes cheaper, new investment opportunities become more attractive, and the opportunity costs of spending decrease,” it added.

In the US, QNB predicts growth of 2.2 percent in 2025, down from 2.6 percent in 2024 but still above the long-term average of 2.3 percent.

“The US economy is expected to remain on a strong footing as labor markets are resilient, productivity is growing rapidly with fast technology adoption, and households have robust balance sheets with the strongest financial position in decades,” QNB said.

Europe and China are expected to recover from extended periods of stagnation. Growth in the European area is forecast to rise from 0.7 percent in 2024 to 1.0 percent in 2025, supported by lower energy prices and a rebound in global manufacturing demand.

China’s growth is projected to increase from 4.8 percent to 5.0 percent, driven by policy easing and renewed economic momentum.

Emerging Asian nations, particularly ASEAN economies, are set to benefit significantly. “Stronger growth in China is likely to be a significant tailwind to emerging Asia in general and ASEAN economies in particular,” QNB said.

The region’s five largest markets, including Indonesia, Malaysia, the Philippines, Singapore, and Thailand, are forecasted to grow by 5.2 percent in 2025, up from 4.4 percent in 2024.

“All in all, we expect to see a moderate acceleration of global growth in 2025, with significant monetary easing, a resilient US economy, a cyclical recovery in Europe and China, and positive spillovers to ASEAN economies,” QNB said.