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

Update COP16: Largest-ever UN meeting on desertification starts in Riyadh
COP16 will run from Dec. 2 to 13. AN
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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

 


Rotana eyes growth in smaller Saudi cities amid hospitality expansion

Rotana eyes growth in smaller Saudi cities amid hospitality expansion
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Rotana eyes growth in smaller Saudi cities amid hospitality expansion

Rotana eyes growth in smaller Saudi cities amid hospitality expansion

RIYADH: Rotana Hotels is turning its attention to smaller cities in Saudi Arabia as part of its ambitious growth strategy to strengthen its presence in the Kingdom. 

Speaking on the sidelines of the third Saudi Tourism Forum, the firm’s Chief Operating Officer Eddy Tannous told Arab News the company is engaging with tourism authorities, development funds, and private investors to explore opportunities in emerging destinations such as Al-Baha and Asir.

Rotana has previously announced its plans to develop nine new properties in Saudi Arabia, five of which are scheduled to open in 2025. This follows the launch of three hotels in 2024, including Nova M, the first Edge by Rotana property, as well as Dar Rayhaan by Rotana in Alkhobar and Al Manakha Rotana in Madinah.

Tannous said: “We have development on properties that will probably open in the next, I want to say, two to five years. Probably six to eight properties in those tertiary cities where it’s becoming a destination that people want to go to as well.”

With Saudi Arabia ranking third globally for international tourist arrival growth in 2024, with a 25 percent increase compared to the previous year, the Kingdom’s hospitality sector is seeing rapid growth.

The company’s goal is to triple its current key count in the Kingdom to 6,000 within the next three years, bolstered by strong demand for hospitality services.

Rotana’s upcoming developments, including Yasmina Rayhaan by Rotana in Riyadh, aim to meet this increasing demand.

“We are a regional brand. We are a brand that grew up in this region, so Saudi Arabia has always been a focus for us. But I think with the announcement of Vision 2030, it became more of a catalyst for us to continue focusing on Saudi Arabia,” Tannous said.

He added: “Saudi Arabia is the region or is the country in this Middle East region that’s growing the fastest and that’s growing with the biggest magnitude from a hospitality standpoint. Our main focus in Saudi Arabia is to focus both on the government sector projects and individual investors.”

Rotana’s expansion strategy is also geared toward major international events, including Saudi Arabia’s hosting of the FIFA World Cup in 2034. This event is expected to attract millions of visitors, creating significant opportunities for the hospitality sector.

Commenting on the company’s plans, Rotana CEO Philip Barnes said in a press release: “We see tremendous potential for expansion in Saudi Arabia. Our ambitious pipeline for KSA underscores our commitment to the hospitality and tourism sectors, both in the Kingdom and regionally, as demand for business and leisure travel soars to new heights in anticipation of major events such as the FIFA World Cup 2034.”

Beyond Saudi Arabia, Rotana is expanding across the Middle East, Africa, Eastern Europe, and Turkiye, where it currently operates 81 properties. The company has a pipeline of 36 new properties in 22 cities, including its projects in Saudi Arabia.

Rotana is also strengthening its presence in key markets such as the UAE, Turkiye, and Africa, where demand for leisure and business travel is on the rise.

“As a company today, we run 86 properties in the world. Some of our source markets to Dubai and Abu Dhabi, which are two of our biggest markets, include the UK, Germany, and Russia,” Tannous said.

Rotana is also preparing for significant updates to its loyalty program, which are expected to be announced later this year — although details remain under wraps.

“It’s not something I can talk about today, but we will hopefully in 2025,” Tannous said. “The most exciting thing for me right now is what we’re doing on our loyalty program because that will open the door for bank partnerships, credit card partnerships, airline partnerships.”

Rotana’s expansion in Saudi Arabia and beyond reflects its commitment to meeting the growing demand for hospitality services while positioning itself as a leader in both regional and international markets.


Asir region to move from planning phase to delivery in 2025, official says

Asir region to move from planning phase to delivery in 2025, official says
Updated 21 min 1 sec ago
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Asir region to move from planning phase to delivery in 2025, official says

Asir region to move from planning phase to delivery in 2025, official says

RIYADH: Saudi Arabia’s Asir region is set to shift from the planning phase to execution in 2025, with several major projects, including the Seven Entertainment Complex, scheduled for completion, according to a senior official.

Speaking to Arab News on the sidelines of the second day of the third Saudi Tourism Forum held in Riyadh from Jan. 7 to 9, Acting CEO of Asir Development Authority Hashem Al-Dabbagh explained that the entity is working with several parties to ensure that the projects in the pipeline progress this year.

This falls in line with the authority’s aim to attract approximately 8 million tourists by 2030.

It also aligns well with the entity’s goal to transform the region into a global destination that will become a world-class tourist hub, both within the Kingdom and internationally, by striking a balance between development and conservation.

Al-Dabbagh said: “2025 is a very exciting year for a number of reasons. Maybe the first one is that the first large project, Seven Entertainment Complex by the airport, will be completed in 2025. So, we launched a number of projects, but this is the first one that should be completed this year. So, we’re very excited about that.” 

He added: “Many of our projects underway, which have to do with the planning of the Asir region, should be completed in 2025. So it’s nice to see us transition from planning and ideation to actual investment and execution in this year.” 

The acting CEO highlighted that over the past three years, the authority has been working diligently with all counterparts in Saudi Arabia. He underlined that many agreements with key stakeholders, including government entities such as the Ministry of Tourism, the Ministry of Investment, and the Ministry of Culture, have already been signed.

“We’ve already signed with them, and we have ongoing relationships with all these entities, that allow us to see through our mandate,” Al-Dabbagh said.

“It’s also worthwhile to mention that the Asir Development Authority has a mandate to oversee, to coordinate, and to plan and to make sure everything goes well but the actual development on the ground takes place through other entities that either have a development mandate if they’re a public sector or by private sector entities,” he added.

During the interview, the acting CEO also shed light on how the investment sector within the Asir Development Authority works to distill capital regionally.

“So, they have a pipeline and every investment that we are following is in one of five phases, starting from the ideation phase to the operating phase,” Al-Dabbagh said.

He added: “We have been exceeding our targets over the past couple of years. As a matter of fact, if we sum the number of investments that just the investment sector has in the pipeline, it comes out to about SR28 billion ($7.45 billion), not including PIF (Public Investment Fund) investments. PIF investments are larger than that amount. So, when you add them together, you get a very large number.”

The acting CEO explained that this figure sums up the investments across all phases.

“Now naturally some of these investments are going to materialize and some of them are going to materialize in a way that is different from what we understand today, and some of them will not. So, that 28 (billion) number is sort of a goal if everything materializes as per the plan,” Al-Dabbagh said.
 
“Asir is the place to be if you are looking to invest in the tourism sector or adjacent sectors in Saudi Arabia,” he added.

The acting CEO explained that Asir is the only region among Saudi Arabia’s 13 areas with an approved strategy from the central government. The vision of this approach is to establish Asir as a premier year-round destination, leveraging its unique cultural and natural assets.

“This is very intimately related to the tourism strategy of Saudi Arabia,” he said.

Al-Dabbagh also discussed the Kingdom’s hosting of the FIFA World Cup in 2034.

“There are five regions within Saudi Arabia that are going to be hosting this World Cup , and they include Abha. So, Saudi Arabia and its five regions, including Abha, is going to be a host to probably the largest number of visitors coming from an event outside of the religious pilgrimage to Saudi Arabia,” he concluded.

Organized in partnership with the Saudi Tourism Authority and the Tourism Development Fund, the third edition of the forum features over 100 exhibitors.

It is a comprehensive platform for exploring the latest developments in the Kingdom’s tourism sector.

The event also offers visitors insights into major investment projects, prospects to elevate their skills, and avenues for forging collaboration that drives national tourism growth.


Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA 

Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA 
Updated 09 January 2025
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Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA 

Saudi Arabia’s MSMEs see 22.6% growth in credit facilities to $88bn: SAMA 

RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 22.6 percent year on year in the third quarter of 2024, totaling SR329.23 billion ($87.8 billion), according to official data. 

The Kingdom’s central bank, known as SAMA, revealed that 94.7 percent of these loans were provided by Saudi banks, while finance companies contributed 5.3 percent. 

MSME lending represented 9.1 percent of banks’ total loan portfolios and 18.8 percent of finance companies’ credit portfolios. 

The Saudi government has been actively encouraging financial institutions to allocate at least 20 percent of their loan portfolios to this critical sector, reflecting its strong and continued commitment to fostering business growth and economic diversification in line with Vision 2030. 

In the third quarter, medium-sized enterprises received the largest share of credit facilities, totalling 55 percent, or SR181.05 billion. 

Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 50.4 percent to SR36.14 billion, despite holding a smaller overall share. 

Credit to small enterprises, which made up 34 percent of MSME financing, rose by 30.4 percent to SR112.03 billion during the same period. 

The growth of SMEs in Saudi Arabia is driven by government-backed initiatives and Saudi Vision 2030’s ambitious reforms. 

Key programs include Kafalah for loan guarantees, Tamweel for connecting SMEs with financiers, and the Saudi Venture Capital Co. for startup investments. 

The Indirect Lending Initiative also enhances SME financing through intermediaries. 

Regulatory advancements, such as the 2015 Companies Law, NIDLP, and the National Center for Privatization, have improved the business environment.

Vision 2030 aims to boost SMEs’ GDP contribution to 35 percent by enhancing productivity, developing skills, improving infrastructure, and supporting sector diversification. 

Monsha’at key figures 

The Small and Medium Enterprises General Authority, also known as Monsha’at, drives SME growth by improving access to financing through collaborations with financial institutions and initiatives including the Kafalah Program, which is designed to boost lending. 

Monsha’at also champions entrepreneurship, supports business development with specialized training programs, and advocates for regulatory enhancements to create a more business-friendly environment. 

According to its third-quarter report, Saudi Arabia saw a significant surge in commercial registrations, which grew by 62 percent year on year to 135,909, with 46.8 percent attributed to female-owned businesses. 

This momentum points to MSMEs’ growing role as engines of innovation, job creation, and economic diversification, strengthening the foundation for sustainable, long-term growth. 

It highlights increasing entrepreneurial activity and business confidence, with more diverse participation across industries. 

The rise in female-owned businesses, in particular, reflects the success of government initiatives aimed at empowering women and fostering inclusivity in the economy, a core objective of Vision 2030. 

Regionally, Riyadh led with 39 percent of new commercial registrations, totaling 53,150, followed by Makkah with 18 percent, or 24,782, and the Eastern Province with 15 percent, amounting to 19,841. 


New expansion increases Riyadh airport’s capacity to 7m passengers

New expansion increases Riyadh airport’s capacity to 7m passengers
Updated 09 January 2025
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New expansion increases Riyadh airport’s capacity to 7m passengers

New expansion increases Riyadh airport’s capacity to 7m passengers

RIYADH: The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, enhancing the airport’s capacity to accommodate up to 7 million passengers per year.

The ceremony was attended by Saudi Arabia’s Minister of Transport and Logistics Services Saleh Al-Jasser, who also serves as chairman of the General Authority of Civil Aviation.

Saudi Arabia’s aviation sector has experienced significant growth, marked by record passenger numbers, an expanding fleet, and new international partnerships—all aligning with the country’s Vision 2030 objectives.

King Khalid International Airport, in particular, has remained the top airport in the Kingdom for several months in 2024, achieving the highest compliance and operational standards. The expansion of Terminal 1 follows the completion of Terminals 3 and 4 in November 2022.

In his remarks, Al-Jasser emphasized that the phased expansion will increase Terminal 1’s annual passenger capacity from 3 million to 7 million. This development is part of a broader initiative to enhance both Terminals 1 and 2, contributing to Saudi Arabia’s Vision 2030 goals to strengthen the nation’s transportation infrastructure, improve the passenger experience, and stimulate economic growth through enhanced air connectivity.

“This expansion not only boosts the terminal’s operational capacity but also reinforces Riyadh’s role as a global hub for international travel and trade,” Al-Jasser said.

He further noted that the project would bolster tourism and economic activity while optimizing the overall passenger experience.

The newly expanded Terminal 1 features a host of modern amenities, including 38 check-in counters, 10 self-service kiosks, 26 passport control counters, and 10 automated gates. In addition, the terminal offers 24 boarding gates and 40 passport control counters in the arrivals area, complemented by 11 self-service gates designed to streamline passenger flow.

When combined with the upcoming enhancements to Terminal 2, the total capacity of both terminals is expected to reach 14 million passengers annually.

The expansion also includes upgrades to commercial spaces, air circulation systems, energy efficiency measures, and enhanced safety protocols.

Al-Jasser also highlighted the transformative potential of the recently unveiled master plan for King Salman International Airport.

The plan aims to position Riyadh as a premier global destination for events, while further establishing the city as a key player in international travel and commerce.

Ayman Abu Abah, CEO of Riyadh Airports Co., opened the ceremony by underscoring the importance of Terminal 1’s expansion. He reiterated that the project aligns with global operational standards and strengthens Saudi Arabia’s position as a vital air transport link between continents.

The inauguration event was attended by several prominent figures, including the President of GACA and the CEO of Airports Holding Company.

This expansion marks a significant milestone in Saudi Arabia’s ambitious efforts to build world-class transportation infrastructure, in line with the National Transport and Logistics Strategy outlined in Vision 2030.


Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global 

Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global 
Updated 09 January 2025
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Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global 

Banking sector in Kuwait, Qatar and UAE to stay stable in 2025: S&P Global 

RIYADH: Banks in Kuwait, Qatar, and the UAE are expected to maintain stability in 2025, supported by strong capital buffers, favorable economic conditions, and supportive government policies, according to a new analysis. 

In Kuwait, S&P Global forecasts improved asset quality, driven by a stronger economy and lower interest rates. 

The banking sector is well-positioned to deal with potential geopolitical stress in the region, with stronger lending growth offsetting the negative impact of lower interest rates on profitability, it added.  

S&P Global’s analysis echoes the views shared by Fitch Ratings in November 2024, which stated that the standalone credit profiles of Islamic banks in Kuwait are expected to remain stable in 2025, supported by favorable operating conditions. 

“After an estimated 2.3 percent contraction in 2024, we expect Kuwait’s GDP growth will rebound to 3 percent in 2025 as OPEC+ oil production restrictions are gradually eased, and project implementation and reform momentum improves,” said Puneet Tuli, S&P Global Ratings credit analyst.   

The report added that accelerated reforms following last year’s political changes could improve the pace of reform and growth prospects for the economy, “which in turn would support higher lending growth for the banking system.”  

According to the report, the credit losses in the Kuwaiti banking sector are approaching cyclical lows. 

S&P Global added that banks are likely to resort to write-offs to limit the rise in the nonperforming loan ratio, supported by strong provisioning buffers. 

The analysis further noted that banks in Kuwait operate with robust capital buffers and typically retain 50 percent or more of their profits, which supports their capitalization. 

The US-based agency also highlighted that Kuwaiti banks’ funding structures benefit from a solid core customer deposit base and a net external asset position. 

“Deposits from government and public institutions have experienced some volatility in the past, as these entities seek to diversify their deposits among local and foreign banks. However, we believe that government support to systemically important banks will be forthcoming if needed,” said S&P Global.  

It added: “Private sector deposits from corporations and households have been stable and dominate Kuwaiti banks’ funding base.”   

Qatar’s outlook 

In Qatar, S&P Global expects continued strong performance for banks in 2025, driven by strong capitalization and ample liquidity. The rise in liquefied natural gas production, along with its impact on the non-hydrocarbon economy, is expected to support credit growth in the next two to three years. 

The report added that local funding sources will play an increasing role in supporting credit growth among Qatari banks, driven by slower public sector deleveraging. 

S&P Global also noted that the Qatari government’s strong support for its banking sector is expected to mitigate the risk of external debt outflows in the event of escalating geopolitical risks. 

“Geopolitical tensions in the Middle East are high but we currently do not expect a full-scale regional conflict, and we anticipate macroeconomic conditions in Qatar will remain broadly stable,” said S&P Global Ratings credit analyst Juili Pargaonkar.  

Forecast for the UAE

In the UAE, S&P Global forecasts improved asset quality metrics and lower credit losses in 2025, driven by a robust domestic economy.  

The agency expects banks in the emirates to maintain strong capital buffers, robust funding profiles, and continued government support in 2025, which will underpin their resilience. 

The analysis also noted that banks in the UAE have experienced a significant increase in deposits over the past three years, which will help sustain their strong growth momentum in 2025. 

“Deposit growth has improved in recent years as private corporations and retail depositors prioritized saving over spending, and higher interest rates provided better yields on deposits,” said S&P Global.   

It added: “We expect strong deposit growth to continue through 2025, given the non-oil economy remains supportive, leading to stronger cash flow generation from corporations.”