COP16: Largest-ever UN meeting on desertification starts in Riyadh

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Updated 02 December 2024
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COP16: Largest-ever UN meeting on desertification starts in Riyadh

COP16: Largest-ever UN meeting on desertification starts in Riyadh

RIYADH: The largest-ever meeting of the UN Convention to Combat Desertification has kicked off in Riyadh, with bolstering global drought resilience one of the key goals.

Running from Dec. 2 to 13, the first few days of COP16 are set to see a number of high-profile summits, ministerial dialogues, and announcements to address the pressing challenges associated with land degradation, degradation and drought. 

French President Emmanuel Macron is expected to be among the attendees, as is the President of the World Bank Ajay Banga. 

The opening day of the event will see Saudi Arabia use its presidency of the event to launch the Riyadh Global Drought Resilience Initiative, in a bid to accelerate international action in this area.

In tandem, the Saudi Green Initiative Forum, running from Dec. 2 to 3, will include hundreds of policymakers, business leaders and subject matter experts from across the world in a dedicated pavilion in the COP16 Green Zone.

The Second International Forum on Greening Technologies is also set to take place in the Green Zone between Dec 6-8, including dozens of tailored sessions to explore solutions, innovations, and lessons learned from global greening projects, alongside showcasing the scientific research associated with restoration projects around the world.

3:15 p.m. - Riyadh Global Drought Resilience Partnership announced 

Saudi Arabia has announced the launch of the Riyadh Global Drought Resilience Partnership, supported by a $150 million investment, according to a top official.

Speaking during the first plenary meeting, COP16 president Abdulrahman Abdulmohsen Al-Fadhley explained that the initiative aims to promote multilateral efforts in the countries most impacted by drought.

“The launching of the Riyadh Global Drought Resilience Partnership aims at promoting multilateral efforts to promote resilience, namely in the countries most impacted by drought. It includes proactive partnerships to support the UNCCD,” Al-Fadhley said.

“It is my pleasure to announce that the government of the Kingdom of Saudi Arabia will support this initiative with the amount of $150 million in the coming 10 years,” he added.

2:46 p.m. - EU to ramp up colloboration

 The EU is set to intensify global collaboration at COP16 in Riyadh, working with international partners to tackle desertification, land degradation, and drought while addressing food security, biodiversity loss, and water scarcity.

In a press release, the 27 member-state union said these issues are global challenges that require urgent action and scaling up of viable solutions, adding that they, exacerbated by climate change, also aggravate economic, social problems such as migration and forced displacement.

Jessika Roswall, commissioner for environment, water resilience, and competitive circular economy, who is representing the EU at COP16, said: “The world loses 100 million hectares of healthy and productive land every year - around twice the size of France. Without rich and fertile soils, we have no food. Without healthy land, people lose their livelihoods.”

The statement further said that the EU advocates for strengthening the implementation of the UNCCD both within the current framework and beyond 2030, underlining that it is crucial for the union that parties agree on a ‘solid budget’ for the Convention secretariat to carry out the decisions made at the COP.

1:58 p.m. – New group announced to support COP16 policy making




Osama Faqeeha, Saudi deputy minister of environment and advisor to the COP16 president.

Saudi Arabia aims to secure concrete outcomes from COP16 with the establishment of a “Friends of the Chair” group, tasked with drafting the Riyadh Policy Declaration, a key outcome document of the conference.  

Osama Faqeeha, Saudi deputy minister of environment and advisor to the COP16 president, announced the formation of the group, emphasizing its role in shaping the conference’s ministerial declaration. 

“The Friends of the Chair group will be facilitated by a group representing the COP presidency, and a report on the outcomes of its work will be submitted directly to me in my capacity as President,” Faqeeha stated.

12:52 p.m. – ‘Action cannot wait’

Amina Mohammed, deputy secretary-general of the UN, called for urgent global action, particularly around strengthening international cooperation on land degradation, ramping up restoration work, and mobilizing finance at scale. 

“Land sustains us, and we are destroying it. Action cannot wait,” she said. 

11:44 a.m - COP16 President speaks

COP16 President Abdulrahman Al-Fadhley, also the Kingdom’s minister of environment, used his speech to emphasized the Kingdom’s commitment to combating desertification, adding: “The Middle East is one of the regions most impacted by land degradation, drought, and desertification. We seek to address environmental challenges in partnership with the international community.” 

The environment minister highlighted Vision 2030 as a cornerstone for the Kingdom’s green agenda, saying: “Protecting the environment and natural resources is essential for achieving sustainable development and quality of life.”

10.43 a.m. - Private sector funding crucial to tackling degradation, UN executive says




Ibrahim Thiaw, executive secretary of the UN Convention to Combat Desertification. UNCCD

Restoring the world’s degraded land and holding back its deserts will require at least $2.6 trillion in investment by the end of the decade, the UN executive overseeing global talks on the issue told Reuters, quantifying the cost for the first time.

More frequent and severe droughts as a result of climate change combined with the food needs of a rising population meant societies were at greater risk of upheaval unless action was taken, Ibrahim Thiaw said.

A large chunk of the around $1 billion a day that is required will need to come from the private sector, said Thiaw, who is executive secretary of the UN Convention to Combat Desertification.

“The bulk of the investments on land restoration in the world is coming from public money. And that is not right. Because essentially the main driver of land degradation in the world is food production... which is in the hands of the private sector,” Thiaw said, adding that as of now it provides only 6 percent of the money needed to rehabilitate damaged land.

“How come that one hand is degrading the land and the other hand has the charge of restoring it and repairing it?,” said Thiaw, whilst acknowledging the responsibility of governments to set and enforce good land-use policies and regulations.

With a growing population meaning that the world needs to produce twice as much food on the same amount of land, private sector investment would be critical, he said.

To hit $2.6 trillion — approaching the annual economic output of France — the world needs to close an annual gap of $278 billion, after just $66 billion was invested in 2022, the UN said.

10:36 a.m. - Abdulrahman Abdulmohsen Al-Fadhley elected as COP16 president

 


Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
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Public firms listed on Muscat bourse report 52.6% surge in profits

Public firms listed on Muscat bourse report 52.6% surge in profits

RIYADH: The net profits of public joint companies listed on the Muscat Stock Exchange surged 52.6 percent year on year to reach 1.339 billion Omani rials ($3.48 billion) in 2024.

This increase coincided with the listing of OQ Exploration and Production and OQ Base Industries in 2024, while energy companies recorded improved performance, with some moving from losses to profits, the Oman News Agency reported.

This falls in line with strong growth in Arab stock exchanges in 2024, where trading values surged 58.1 percent to surpass $1.03 trillion.

It also aligns with a 21.3 percent increase in regional trading volumes and a 35.9 percent rise in the number of trades during the year, reflecting a dynamic financial landscape with varied market performances.

Statistics from the Oman News Agency, based on preliminary financial results for around 90 public joint-stock firms with fiscal years ending in December, revealed improved performance across most companies in the banking, industrial, investment, service, and telecommunications sectors.

The data further showed that the total number of companies that reported profits last year was 69, compared to 68 entities that reported profits in 2023, excluding the financial results of funds and firms that were not listed on the stock exchange during 2023.

The figures also indicated that OQ Exploration and Production topped the list of companies with the highest net profits, totaling 326.5 million rials.

Bank Muscat came in second with 225.5 million rials, followed by Sohar International Bank, which came in third with 100.2 million rials.

Omantel ranked fourth after recording net profits at the local level of 69.4 million rials. The National Bank of Oman placed fifth with net profits of approximately 63.1 million rials, followed by OQ Gas Networks, which came in sixth with 47.8 million rials.

The data further showed that Bank Dhofar placed seventh with 43.6 million rials, while Ahli Bank ranked eighth with 41.6 million rials.

Ominvest placed ninth with net profits of an estimated 35.9 million rials, while Oman Arab Bank ranked tenth with net profits of 30.4 million rials.

Preliminary data showed that the losses recorded by public joint-stock companies decreased last year to around 38.1 million rials, compared to losses of 50.6 million rials in 2023. However, the number of firms recording losses last year jumped to 21, compared to 20 companies that recorded setbacks in 2023.

Last year, five companies flipped from losses to profits, including SMN Power Holding, which reported group net profits of 4.5 million rials in 2024, up from 6.4 million rials in 2023. Sohar Power Co. also posted net profits of about 22 million rials, compared to 5.1 million rials the previous year.

Conversely, six companies turned from profits to losses, most notably Leva Group, which recorded losses of 5 million rials in 2024, compared to net profits of 6.3 million rials in 2023, and Oman Refreshments, which recorded group losses of 2.7 million rials last year, compared to a net profit of 6.3 million rials in 2023.

Galfar Engineering and Contracting also recorded a group loss of 3.9 million rials in 2024, compared to a profit of 574,000 rials in 2023.


Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 
Updated 23 March 2025
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Riyadh municipality unveils new investment opportunities across key sectors 

Riyadh municipality unveils new investment opportunities across key sectors 

JEDDAH: Riyadh has unveiled new investment opportunities for 2025, covering commercial, residential, retail, industrial, and leisure projects to boost the city’s economy and development. 

The Riyadh municipality introduced 20 new investment prospects, covering more than 175,000 sq. meters across over 20 sites. These include mixed-use developments, existing retail spaces, mobile sports clubs, and areas allocated for concrete and construction material factories — along with a cafe and ATM setup. 

Investors can access the projects through the Furas online platform, designed as the municipality’s primary hub for real estate and municipal investment opportunities, the Saudi Press Agency reported. 

The initiative is part of a broader strategy to accelerate private sector participation in urban development, aligning with Saudi Arabia’s Vision 2030. 

“This step comes as an extension of the Riyadh municipality’s strategy to enhance the role of the private sector in urban development, by enabling it to participate effectively in developing facilities and services, and achieving integration between government and investment efforts to meet the needs of society,” the SPA report stated.  

“It also contributes to raising the quality of urban life and achieving the goals of the Kingdom's Vision 2030,” it added.  

Contracts for the investment sites range from five to 25 years, covering multiple districts across Riyadh. Key locations include Jarir, Al-Deerah, and Al-Rawdah, alongside Al-Basateen, Al-Qadisiyah, and Al-Jazirah. 

Additional areas feature Al-Hamra, Al-Morouj, and Al-Yamamah, as well as Eastern Suwaidi, Al-Masha’il, Al-Manakh, Badr, and Taybah. 

Investors are invited to review competition requirements and the application process via a dedicated link, with the envelope opening set for May 2025. 

In a parallel push to enhance the capital’s livability, 87 new parks were inaugurated over the last three years — raising the city’s total to over 700, up from 615. The parks cover more than 745,000 sq. meters, featuring nearly 25,000 shrubs and 7,000 trees planted across different districts to ensure equitable access to green spaces. 

The parks now serve as dynamic community hubs, hosting cultural, social, entertainment, and sporting activities. The move underscores Riyadh Municipality’s commitment to improving quality of life, fostering social cohesion, and advancing Vision 2030’s urban sustainability goals. 

With these investments and infrastructure developments, Riyadh is positioning itself as a leading model for vibrant, sustainable urban growth in the region. 


Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 
Updated 23 March 2025
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Global economic growth to average at 3.1% in next 5 years: IMF official 

Global economic growth to average at 3.1% in next 5 years: IMF official 

RIYADH: Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.

Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.

The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience. 

In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026. 

“Global growth is steady but underwhelming. Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke. 

He added: “Patterns of trade and capital flows are shifting. AI (artificial intelligence) is rapidly advancing. Trade is no longer the engine of global growth it used to be. Divergences across countries are widening. And governments worldwide are shifting their policy priorities.” 

Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.

He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards. 

“It also applies to emerging markets and developing economies trying to close the gap with richer countries. To provide better jobs and a higher standard of living, they too need to ignite productivity growth,” added the deputy managing director.

He added that this productivity growth could be achieved only by innovation, technological advancements, and ample investments in research and development. 

Citing IMF research, Clarke highlighted that productivity growth in advanced economies could increase by 0.2 percentage points a year with a hybrid policy that boosts public research expenditure by a third and doubles subsidies to private research. 

He noted that AI could boost global gross domestic product growth between 0.1 and 0.8 percentage points per year in the medium term, depending on how it is adopted.

Clarke also underscored the necessity of better resource allocation in the future to maintain a healthy global productivity level. 

“The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth. As workers move from farms to factories, for example, their productivity increases dramatically. So too do their income and living standards, with spillovers to the whole economy,” he said. 

According to Clarke, effective measures should be taken to strengthen the private sector, as well as create an environment that could help them thrive. 

“Through our policy advice, lending and capacity development, the IMF has consistently supported countries in establishing macroeconomic and financial stability as a foundation for growth,” said Clarke. 

He added that a new IMF Advisory Council on Entrepreneurship and Growth has been created to help countries develop ideas on easing regulatory barriers, adapting tax systems, and incentivizing long-term savings to boost innovation.


Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030
Updated 40 min 41 sec ago
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Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

Saudi Arabia’s PIF at forefront as Gulf SWFs approach $18tn by 2030

RIYADH: Saudi Arabia’s sovereign wealth fund and five of its regional counterparts are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.  

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.  

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion. 

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.” 

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.” 

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. 

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA. 

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023. 

Asia takes center stage 

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets. 

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India. 

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024. 

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms. 

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted. 

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities. 

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies. 

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets. 

Combating challenges 

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated. 

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.  

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent. 

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated. 

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players. 

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.” 


Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 
Updated 23 March 2025
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Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD 

RIYADH: Global borrowing hit a record $25 trillion in 2024, a $10 trillion surge from pre-pandemic levels, sparking concerns over sustainability, a new report showed.

The Organization for Economic Co-operation and Development said in its latest study, “Financing Growth in a Challenging Debt Market Environment,” that the figure is nearly triple the amount raised in 2007, driven by rising sovereign and corporate debt amid higher borrowing costs and economic volatility. 

The surge in borrowing reflects a fragile global economy grappling with slower growth, persistent inflation, and geopolitical uncertainty, which have forced governments and companies to seek more debt to fund operations and maintain public services. 

OECD Secretary-General Mathias Cormann said: “Sovereign and corporate debt levels continue to grow across the world, at a time of increasing borrowing costs and market volatility.” He urged governments to improve public spending efficiency, prioritize productive investments, and incentivize businesses to expand capacity. 

Rising debt levels

The analysis warned that debt levels are projected to continue rising into 2025, with the aggregate central government marketable debt-to-gross domestic product ratio in OECD countries expected to reach 85 percent. This represents an increase of more than 10 percentage points since 2019, nearly double the 2007 level.

“The increase in 2024 was the first since 2020, reflecting slower projected GDP (gross domestic product) growth of around 2 percent annually during this period, compared to over 4 percent in 2022-23, when the economy was recovering from the pandemic,” the report said. 

Bond yields in several major markets surged despite declining policy rates, exacerbating the challenges posed by higher sovereign and corporate indebtedness. This scenario increases borrowing costs and limits the fiscal space available for future investment at a time when substantial capital is needed to drive economic growth, respond to demographic changes, and meet defense and infrastructure needs. 

Record bond issuance

Sovereign bond issuance in OECD countries is projected to reach a historic high of $17 trillion in 2025, up from $14 trillion in 2023. The total outstanding debt is expected to grow from $54 trillion in 2023 to nearly $59 trillion in 2025.

Emerging markets and developing economies also witnessed a sharp increase in sovereign borrowing, with total debt issuance rising from approximately $1 trillion in 2007 to over $3 trillion in 2024. China accounted for 45 percent of the total issuance in 2024, a rise from the 17 percent recorded between 2007 and 2014.

By the end of 2024, global corporate bond debt is set to reach $35 trillion, continuing a decades-long borrowing trend, mainly driven by non-financial companies whose debt has nearly doubled since 2008.

Higher borrowing costs

Governments and corporations are beginning to feel the weight of higher borrowing costs. In 2024, interest payments as a share of GDP increased in about two-thirds of OECD countries, reaching an average of 3.3 percent — a growth of 0.3 percentage points from the previous year. 

“This means spending on interest payments is greater than government expenditure on defense in the OECD on aggregate,” the report explained. 

Additionally, refinancing risks have grown significantly, with nearly 45 percent of sovereign debt in OECD countries set to mature by 2027. Corporate bond markets face similar pressures, with approximately one-third of all outstanding corporate bond debt scheduled to mature in the next three years. 

Refinancing this debt at higher interest rates could further strain public and corporate finances.   

Debt ownership shifts 

The withdrawal of central banks from sovereign debt markets continued in 2024, with their holdings of domestic government bonds in OECD economies shrinking from 29 percent of total outstanding debt in 2021 to 19 percent in 2024.

Simultaneously, domestic households increased their share from 5 percent to 11 percent, while foreign investors expanded their holdings from 29 percent to 34 percent. This transition to a more price-sensitive investor base could amplify market volatility, particularly if new investors demand higher yields.

Climate financing challenges

A key theme of the OECD’s report is the financing required to meet global climate change objectives.

“If growth rates for public and private investment in the climate transition continue in line with recent trends, advanced economies will not be aligned with the Paris Agreement goals until 2041,” the study said. 

The situation is even more difficult for emerging markets other than China, which would face a cumulative investment shortfall of $10 trillion to meet the Paris Agreement goals by 2050.

The report suggested that increasing public sector financing for climate initiatives could substantially raise public debt-to-GDP ratios. Alternatively, greater reliance on private capital would necessitate rapid development of capital markets, particularly in emerging economies.

“Financial regulation reforms will be essential, particularly to enhance capital market development in emerging markets,” the study noted.