COP29: Developing countries urge action on climate finance deal

COP29: Developing countries urge action on climate finance deal
COP29 is being held in Baku, Azerbaijan. UN Climate Change
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Updated 19 November 2024
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COP29: Developing countries urge action on climate finance deal

COP29: Developing countries urge action on climate finance deal

RIYADH: Measures available to manage the rising global temperature are not sufficient, a leading Thai official has told the UN’s climate change conference in Baku.

Speaking at COP29 in Azerbaijan, the Asian country’s Minister of Natural Resources and the Environment, Chalermchai Sri-on, called for decisions to be made on climate financing to help those nations most affected by rising temperatures.

His comments were echoed by other ministers throughout the morning session, which came a day after the UN’s climate chief Simon Stiel told world leaders to “cut the theatrics and get down to business” with regards to agreeing a funding deal for developing countries.

Addressing delegates, Sri-on said: “The first global stocktake significantly showed that our current efforts are still insufficient to control global temperature increase.”

Malaysia’s Minister of Natural Resources and Environmental Sustainability, Nik Nazmi Nik Ahmad, urged developed nations to fulfill their financial responsibilities, ensuring funds are “accessible and impactful.”

Romania’s Minister of the Environment, Waters and Forests, Costel Alexe, called for prioritizing action over political differences, stating: “Failure is not an option for anyone.” 

He also emphasized Romania’s focus on private-sector partnerships for decarbonization in energy, transport, and industry. 

Diego Pacheco of Bolivia pointed to the responsibility of developed nations, stating: “Our countries are suffering the impacts of climate change, due largely to the historical emissions of developed countries.” 

Sophalleth Eang, Cambodia’s minister of environment, reaffirmed Cambodia’s ambitious climate targets, including carbon neutrality by 2050, as outlined in its 2020 updated nationally determined contributions. 

Franz Tattenbach, Costa Rica’s minister of environment and energy, expressed optimism in the ripple effects of decarbonization, saying: “We are an ambitious country, and we hope to scale up our ambition. We believe that decarbonization could lead to decarbonization in other countries.” 

Austria’s Leonore Gewessler highlighted the need for urgent united action, saying: “It is our collective responsibility to make more progress without further delay.” 

Additional leaders addressed the challenges of achieving meaningful climate goals amid global crises.

Burkina Faso’s Roger Baro urged for substantial commitments to protect the environment and develop resilient economies, while Celine Caron-Dagioni of Monaco called for updated contributions aligned with long-term climate goals. 

Namibia’s Pohamba Penomwenyo Shifeta stressed the importance of balanced climate financing. 

Speakers also showcased national achievements and initiatives. Uruguay’s Robert Bouvier Torterolo highlighted the country’s renewable energy success, with over 95 percent of its electricity derived from sustainable sources. Senegal’s Daouda Ngom emphasized the need for accessible financing to support adaptation plans. 

Nigeria’s Balarabe Abbas Lawal detailed investments in renewable energy and afforestation, while Rwanda’s Valentine Uwamariya highlighted the significant economic cost of climate change to her nation and called for “ambitious, balanced, fair, and just outcomes” from the climate change forum. 

Eritrea’s Minister of Land, Water, and Environment, Tesfai Gebreselassie, stressed the continued need for climate finance, stating: “Mobilization of climate finance is still critical.”   

Tunisia’s Minister of Environment, Habib Abid, highlighted national efforts, saying: “We have developed comprehensive strategies to promote adaptation and mitigate climate change effects.” 

Simon Watts, New Zealand’s minister of climate change, announced a series of contributions, including $20 million to the Pacific Resilience Facility and $10 million to the Global Fund for responding to loss and damage.    

Watts said: “New Zealand wants this fund to deliver effective support to some of the most affected communities so that they can recover from climate impacts and build stronger, more resilient communities.”   

He added: “New Zealand is pioneering innovative, high-trust approaches to climate finance, including through country flexible finance, which provides funding directly to our partners so that they can make their own choices on how that funding is allocated.”  

New Zealand emphasized its progress in renewable energy, with Watts noting that 85 percent of the country’s electricity is already generated from renewable sources. "We plan to double that amount of renewable generation by 2050.”   

Qatar’s Minister of Environment and Climate Change, Abdullah bin Abdulaziz bin Turki Al-Subaie, called for stronger commitments from developed nations, stating: “We call upon developed countries to fulfill their commitments, including the reformation of international financial systems, and to build on what has been achieved in the previous COPs.” 

He also emphasized Qatar’s role in providing clean energy, saying: “We continue to supply clean energy to global markets through our highly efficient LNG, which is a reliable source of low-carbon energy.” 

Australia’s Minister for Climate Change and Energy, Chris Bowen, announced a $50 million contribution to the fund for responding to loss and damage, making Australia the sixth-largest contributor to the initiative.  

“This year, we're committed to more than $20 billion in clean energy investments,” said Bowen. 

He added that the country views climate action as economically beneficial at all levels, from household budgets to the national economy. 

Norway’s Minister of Climate and Environment, Tore Sandvik, underscored the importance of leveraging private sector investment, stating: “Our collective goal should send strong signals to mobilize investments from the private sector.”  

Portugal’s Secretary of State for Environment, Emídio Ferreira dos Santos Sousa, emphasized the need for raising ambition, saying: “It is essential to raise ambition regarding the new collective, quantified goal for climate finance, which is set at $100 billion per year.”  

He also announced Portugal’s international climate finance commitments, which will total €68.5 million.   

South Africa’s Minister of Forestry, Fisheries, and the Environment, Dion George, called for increased financial and non-financial support, stating: “South Africa needs financial and non-financial support to ensure an inclusive and equitable transition that benefits all sectors, including SMEs (small and medium sized enterprises).”  

He added: “We urge developed economy countries to fulfill their commitments, including the $100 billion per annum climate finance target.” 

These latest contributions and appeals reflect the urgent need for global cooperation as the conference moves toward finalizing agreements on climate finance. 


Most Gulf central banks follow Fed lead and cut key interest rates 

Most Gulf central banks follow Fed lead and cut key interest rates 
Updated 15 sec ago
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Most Gulf central banks follow Fed lead and cut key interest rates 

Most Gulf central banks follow Fed lead and cut key interest rates 

DUBAI: Most central banks of the Gulf Cooperation Council cut key interest rates on Wednesday, following the Federal Reserve’s decision to reduce US rates by a quarter of a percentage point. 

The Federal Reserve on Wednesday lowered the federal funds target rate range by 25 basis points to between 4.25 percent and 4.5 percent. It also signaled it will slow the pace at which borrowing costs fall any further given a relatively stable unemployment rate and little recent improvement in inflation. 

The Gulf’s oil and gas exporters generally follow the Fed’s lead on rate moves as most regional currencies are pegged to the US dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar. 

Saudi Arabia, the region’s biggest economy, cut its repurchase agreement rate and reverse repo rate by 25 bps each to 5 percent and 4.5 percent, respectively. 

The UAE also reduced its base rate on the overnight deposit facility by a quarter of a percentage point, to 4.40 percent. 

Most regional economies have been largely shielded from stubbornly high inflation elsewhere and have implemented ambitious economic diversification plans to boost non-oil growth. 

In Qatar, the central bank cut its three main interest rates by a slightly deeper 30 bps, while Bahrain’s central bank stuck with a 25 bps reduction in its overnight deposit rate, to 5 percent. 

In a separate statement released on Wednesday, the Central Bank of Kuwait said it “has adopted a gradual and balanced approach in adjusting the discount rate,” noting it had cut its discount rate by 25 basis points to 4 percent as of Sept. 19. 


Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan
Updated 18 December 2024
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Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan

Saudi Arabia’s ACWA Power launches $3bn renewable projects in Uzbekistan
  • ACWA Power has been significantly involved in Uzbekistan’s renewable energy sector in recent years
  • Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030

JEDDAH: Saudi utility giant ACWA Power launched three renewable projects in Uzbekistan, including wind, solar, and battery storage, marking a $3 billion investment in the country’s energy transition.

On Dec. 18, Uzbekistan’s President Shavkat Mirziyoyev and the Kingdom’s Minister of Energy, Prince Abdulaziz bin Salman, who joined virtually, inaugurated the projects.

The initiatives include the Bash and Dzhankeldy Wind Power Plants with a total capacity of 1,000 megawatts and a transmission line, the Samarkand 1 and 2 solar projects with 1,000 MW of solar power and a 1,000 MWh battery energy storage system, and the Tashkent BESS Project, which consists of a 500 MWh BESS.

Uzbekistan aims to generate 40 percent of its electricity from renewable sources by 2030, a critical milestone in its broader plan to achieve 20 gigawatts of clean energy capacity by the decade’s end.

Mohammad Abunayyan, the chairman of ACWA Power’s board of directors, who also chairs the Saudi-Uzbek Business Council, emphasized the significant progress in his company’s collaboration with the Uzbek government, highlighting its role as a key strategic investor in the country’s rapidly growing clean energy sector.

Abunayyan said: “Today’s groundbreaking highlights the multitude of large-scale foreign direct investments and commendable efforts by Uzbekistan to strengthen the potential of the country’s energy system and capacity. It also paves the way for the commencement of ACWA Power projects that are expected to yield widespread benefits for Uzbekistan’s key regions and communities.”

Prince Abdulaziz commended the robust relationship between the Kingdom and Uzbekistan and said the alliance has nurtured deep collaboration across multiple sectors, with a particular focus on energy, which has brought mutual benefits to both nations, according to a statement from the company.

The Saudi minister also praised the economic cooperation between the two countries, particularly in the context of Saudi Vision 2030 and Uzbekistan Strategy 2030. He stressed their shared goals of economic development, diversification, renewable energy, and sustainable growth, as well as the Kingdom’s growing investment in Uzbekistan’s electricity sector amid the country’s energy transition.

In October, ACWA Power announced it signed a letter of intent with the Asian Infrastructure Investment Bank to secure $150 million for the development of three wind power plants in Uzbekistan, namely the Kungrad 1, 2, and 3 plants in the Karakalpakstan region.

The company, listed on the Saudi Stock Exchange, said in a press release that the financing will support the three facilities, each with a capacity of 500 MW.

The financing term is set at four years and will be backed by an institutional guarantee from ACWA Power.

Uzbekistan is a key foreign market for ACWA Power, which has been significantly involved in the country’s renewable energy sector in recent years.

The company’s current portfolio in Uzbekistan includes 11.6 GW of power, with 10.1 GW from renewable sources, along with the country’s first green hydrogen project, which has an annual capacity of 3,000 tonnes.

Since the partnership began, four major projects worth approximately $3 billion have been successfully implemented, with an ongoing portfolio of initiatives valued at $15 billion, ACWA Power said in the statement.


Saudi Arabia unveils enhanced e-guide to boost exports

Saudi Arabia unveils enhanced e-guide to boost exports
Updated 18 December 2024
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Saudi Arabia unveils enhanced e-guide to boost exports

Saudi Arabia unveils enhanced e-guide to boost exports

JEDDAH: The Kingdom’s businesses now have access to an enhanced support system through the newly launched electronic guide by the Saudi Export Development Authority.

SEDA has introduced the first digital version of its Export Incentive Service, or Incentives, which provides a comprehensive overview of key benefits, application procedures, and eligibility criteria aimed at promoting exports.

The initiative is designed to help Saudi companies expand into global markets by offering nine distinct incentives that adhere to World Trade Organization regulations, according to the Saudi Press Agency.

This launch is part of SEDA’s ongoing efforts to enhance the export environment, raise awareness of export practices, develop human capital within the sector, and create new opportunities for Saudi exporters.

Additionally, the program seeks to address the challenges faced by exporters through collaboration with both public and private sector stakeholders. By supporting these efforts, the program aligns with the Kingdom’s Vision 2030 goals of diversifying sources of national income.

The guide caters to the specific needs of exporters, covering a wide range of activities, including e-commerce platform registration, product certification, participation in international trade shows, marketing, advertising, product registration, and facilitating visits to potential buyers. It also offers legal consultations and specialized training.

A notable feature of the program is its cost-sharing component. The initiative compensates companies for a portion of the costs associated with entering new markets, offering reimbursement ranging from 50 percent to 75 percent, depending on specific terms and conditions.

In the third quarter of 2024, Saudi Arabia’s non-oil exports reached SR79.48 billion ($21.17 billion), marking an impressive 16.76 percent increase compared to the same period in 2023, according to data from the General Authority for Statistics.

Notably, the Kingdom’s exports to the UAE amounted to SR19.58 billion, followed by India at SR6.78 billion and China at SR6.48 billion.

Chemical products led the Kingdom’s non-oil exports, representing 25.5 percent of total shipments, with a 5.3 percent year-on-year increase. Plastic and rubber products followed, accounting for 24.9 percent of exports, reflecting an 8.9 percent growth compared to the previous year.

In addition to the export incentives program, SEDA recently introduced another initiative exempting industrial inputs from customs duties.

Developed in collaboration with the Ministry of Industry and Mineral Resources, this service provides industrial companies with customs duty exemptions on inputs used to produce export goods. This move aligns with Vision 2030’s broader goal of diversifying the economy and increasing non-oil exports.

The service covers industrial inputs, such as raw materials, labor, fuel, equipment, and buildings, enabling Saudi manufacturers to reduce costs associated with production for export. By improving cost efficiency, the initiative aims to enhance the global competitiveness of Saudi industries.

Together, these programs are designed to diversify income sources, enhance non-oil exports, and promote sustainable growth, offering innovative solutions tailored to the needs of exporters while supporting the competitiveness of the Kingdom’s industrial sector.


Closing Bell: Saudi indices close in green

Closing Bell: Saudi indices close in green
Updated 18 December 2024
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Closing Bell: Saudi indices close in green

Closing Bell: Saudi indices close in green

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Wednesday, gaining 12.33 points, or 0.10 percent, to close at 11,961.05.  

The total trading turnover of the benchmark index was SR4.5 billion ($1.2 billion), as 117 of the listed stocks advanced, while 106 retreated.     

The MSCI Tadawul Index increased by 0.40 points, or 0.03 percent, to close at 1,498.37.  

The Kingdom’s parallel market Nomu also gained 95.94 points, or 0.31 percent, to close at 31,196.25. This comes as 47 of the listed stocks advanced, while 39 retreated.  

The best-performing stock of the day was Savola Group, with its share price surging by 9.98 percent to SR33.60.  

Other top performers included United International Holding Co., which saw its share price rise by 9.01 percent to SR171.80, and Batic Investments and Logistics Co., which saw a 6.05 percent increase to SR3.68.     

Alkhaleej Training and Education Co. saw its share price surge by 4.35 percent to SR32.35, while Fitaihi Holding Group recorded a 3.58 percent rise, closing at SR4.34.  

Red Sea International Co. saw the biggest decline of the day, with its share price dropping 7.05 percent to SR56.70. 

Jahez International Co. for Information System Technology saw its shares drop 5.07 percent to SR29, while Zamil Industrial Investment Co. declined 3.95 percent to SR32.80. 

Moreover, Sumou Real Estate Co. dropped 3.83 percent to SR46.50, while Al-Baha Investment and Development Co. fell 3.12 percent to SR0.31. 

On the parallel market Nomu, the top performer was View United Real Estate Development Co. with its share price surging by 30 percent to reach SR9.88.  

Leen Alkhair Trading Co. saw a 9.62 percent surge in its share price to SR25.65, placing second, followed by Yaqeen Capital Co., which rose 8.13 percent to SR26.60. 

Dar Almarkabah for Renting Cars Co. saw a 7.71 percent increase, reaching SR17.75, while Abdulaziz and Mansour Ibrahim Albabtin Co. rose 7.59 percent to SR17.80. 

Nomu’s two biggest decliners for the day were Enma AlRawabi Co., with its share price falling 11.65 percent to SR22, and Knowledge Net Co., which dropped 8.70 percent to SR31.50. 

Leaf Global Environmental Services Co. followed with a dip of 8.40 percent in its share price reaching SR97.10.  

Bena Steel Industries Co. and Advance International Company for Communication and Information Technology were also among the worst performers with a 7.16 percent and 6.25 percent decline respectively.  

On the announcement front, Saudi Arabia’s Capital Market Authority has approved Saudi Fisheries Co.’s request to reduce its capital from SR400 million to SR66.99 million, representing a reduction in the number of shares from 40 million to 6.7 million. The move aims to restructure the company’s capital base.

Saudi Fisheries Co.’s share price closed Wednesday with a 0.44 percent drop to settle at SR22.56.

Additionally, the CMA has approved Makkah Construction and Development Co.’s request to increase its capital from SR1.65 billion to SR2 billion.

The capital increase will be achieved by issuing 0.213 bonus shares for every existing share owned by registered shareholders, with a total of 35.18 million new shares to be issued.

The increase will be funded by transferring SR351.84 million from the company’s statutory reserve account to its capital.

Makkah Construction and Development Co.’s share price dropped 1.46 percent on Wednesday to settle at SR107.80.

In a separate announcement, Yaqeen Capital Co., acting as the financial advisor and lead manager for ITMAM Consulting Co., disclosed the firm’s intention to offer 3 million ordinary shares, representing 14.29 percent of its total capital, in an initial public offering.

The company plans to list its shares on the parallel market, subject to regulatory approval. 


Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
Updated 18 December 2024
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Cairo-Jeddah named second-busiest international air route for 2024

Cairo-Jeddah named second-busiest international air route for 2024
  • Airline capacity on this route has surged by 14% compared to 2023, and has increased by 62% compared to 2019
  • Expansion contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade

RIYADH: The Cairo-Jeddah air route has been ranked as the second-busiest international flight corridor in 2024, with approximately 5.5 million available seats, according to a new report.

The analysis, conducted by global travel data provider the Official Airline Guide, revealed that airline capacity on this route has surged by 14 percent compared to 2023, and has increased by 62 percent compared to 2019.

This growth is aligned with Saudi Arabia’s broader efforts to enhance its aviation sector, which is a key part of its Vision 2030 strategy.

These efforts include strengthening the country’s airlines, logistics services, cargo infrastructure, and other support industries to boost tourism and make the Kingdom a global aviation hub.

The expansion also contributes to Saudi Arabia’s target of attracting 150 million visitors annually by the end of the decade.

John Grant, chief analyst at OAG, attributed the rapid growth of the Cairo-Jeddah route to significant investments under Vision 2030, as well as longstanding ties between the two cities, which have historically seen high volumes of worker traffic and, more recently, increased business activity in consultancy and services.

He also noted that the easing of travel restrictions for entry into Saudi Arabia and the rise of low-cost carriers have contributed to the route’s growth.

The report also highlights a 19.1 percent capacity gap between the second and first-place routes. Hong Kong-Taipei holds the title of the world’s busiest international route in 2024, with 6.8 million available seats.

The Seoul Incheon-Tokyo Narita route ranks third with 5.4 million seats, just 58,818 seats behind Cairo-Jeddah, while Kuala Lumpur-Singapore Changi follows closely in fourth place with 5.4 million seats, only 28,293 behind third.

The Bangkok-Hong Kong route has made a significant leap into the Top 10 Busiest International Routes for 2024, ranking seventh with 4.2 million seats. This marks a 29 percent increase in capacity compared to 2023, although it still lags 13 percent behind the 2019 levels.

Asia dominates the top 10, with seven of the busiest routes located in the region. Other notable routes include New York JFK to London Heathrow and two Middle Eastern routes: Cairo-Jeddah and Dubai-Riyadh. The Jeddah-Riyadh route has also seen impressive growth, with capacity increasing by 10 percent in 2024 compared to the previous year.

These trends highlight the growing demand for air travel in and out of the Middle East, particularly in Saudi Arabia, which continues to make strides toward achieving its ambitious goals under Vision 2030.