COP16: Saudi Arabia vows to intensify action to tackle drought, land degradation

COP16: Saudi Arabia vows to intensify action to tackle drought, land degradation
Abdulrahman Al-Fadli, the Kingdom’s minister of environment and COP16 president. Screenshot
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Updated 02 December 2024
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COP16: Saudi Arabia vows to intensify action to tackle drought, land degradation

COP16: Saudi Arabia vows to intensify action to tackle drought, land degradation

RIYADH: Saudi Arabia’s incoming COP16 president vowed to work with the international community to tackle drought and desertification on the first day of a UN conference in Riyadh.

Abdulrahman Al-Fadli, the Kingdom’s minister of environment, used his speech at the event – being held from Dec. 2 to 13 under the theme “Our Land. Our Future” – to reflect on the challenges facing the global community.

Outgoing COP15 president, Côte d'Ivoire’s Alain-Richard Donwahi, handed over leadership of the UN Convention to Combat Desertification with a call for continued urgency, while Ibrahim Thiaw, executive secretary of the UNCCD, warned that close to 40 percent of the planet’s surface is affected by land degradation. 

Al-Fadli said he was “honoured” to have been elected president, adding: “We look forward to intensifying action under this convention to face the challenges and promote integration between various international environment organizations.” 

Reflecting on the challenges ahead, he 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.”

Saudi Arabia’s environmental commitment  

Al-Fadli detailed the Kingdom’s objectives, including the Saudi Green Initiative, which aims to restore 40 million hectares of degraded land and increase national reserves by 30 percent by 2030.  

He added: “We have established initiatives and programs to limit pollution, develop vegetation cover, and improve waste management and meteorological services.” 

Addressing broader approaches, Al-Fadli highlighted that Saudi Arabia has adopted the National Environment Strategy and established a fund for environmental causes, as well as five specialized centers. 

He underlined efforts in renewable energy: “We aim to ensure more than 50 percent of our energy mix comes from renewable sources by 2030, reducing carbon emissions significantly.” 

Global and local perspectives 

Mayor of Riyadh Faisal bin Abdul Aziz bin Ayyaf highlighted the interconnected nature of environmental challenges, saying: “No country or city can address these challenges alone. Through international cooperation and collective work, we can find innovative solutions to restore our land and develop our cities.” 

He added: “We coordinate initiatives to ensure Riyadh can be a model for the world.” 

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. 




Amina Mohammed, deputy secretary-general of the UN. Screenshot

Outgoing president’s reflections 

COP15 president Donwahi praised Saudi Arabia’s capability to continue the battle against land degradation, saying there is no doubt in the Kingdom’s ability to  “elevate our shared legacy even further” as it stands at the forefront of challenges such as sandstorms and drought. 

Stressing the ongoing nature of the mission, he said: “We have remained optimistic. However, the situation remains urgent. We must go further and faster.” 

Donwahi acknowledged the progress made by previous COPs, particularly the inclusion of youth, saying: “For the first time, we have appointed a special youth envoy, a strong symbolic gesture that demonstrates our commitment to young people.” 

International collaboration 

Ibrahim Thiaw, executive secretary of the UNCCD, used his speech to warn that close to 40 percent of the planet’s surface is affected by land degradation. 

“This disease is progressing at a terrifying pace,” he added. 

Thiaw expressed his “deepest gratitude” to Saudi Arabia for its “vision in elevating the global land restoration and drought resilience agenda.” 

The conference also looked ahead to COP17 in Mongolia, with Prime Minister Luvsannamsrain Oyun-Erdene expressing his country’s readiness.


Oil Updates — crude near 3-week high on supply fears, US stocks drop

Oil Updates — crude near 3-week high on supply fears, US stocks drop
Updated 15 sec ago
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Oil Updates — crude near 3-week high on supply fears, US stocks drop

Oil Updates — crude near 3-week high on supply fears, US stocks drop
  • Brent, WTI hit three-week highs in the previous session
  • Trump press on Venezuelan, Iranian oil fans bullish sentiment
  • Russia, Ukraine agree to sea, energy truce

NEW YORK/SINGAPORE: Oil prices edged higher on Wednesday on supply concerns with the US stepping up efforts to limit Venezuelan and Iranian oil exports, while a bigger-than-expected drop in US crude inventories also lent support.

Brent crude futures gained 20 cents, or 0.3 percent, to $73.22 a barrel by 7:04 a.m. Saudi time, while US West Texas Intermediate crude futures rose 20 cents, or 0.3 percent, to $69.20 a barrel.

Both contracts hit their highest in three weeks in the previous session.

“Crude oil prices maintain their bullish bias after Trump’s sanctions on Venezuelan oil, raising supply-side concerns,” Priyanka Sachdeva, a senior market analyst at Phillip Nova, wrote in a market commentary on Wednesday.

On Monday Trump signed an executive order authorizing his administration to impose blanket 25 percent tariffs under the 1977 International Emergency Economic Powers Act on imports from any country that buys Venezuelan crude oil and liquid fuels.

Oil is Venezuela’s main export. China, already a target of US import tariffs, is its largest buyer.

Trade of Venezuelan oil to top buyer China stalled on Tuesday, as Chinese traders and refiners said they were waiting to see how the order would be implemented and whether Beijing would direct them to stop buying.

Washington last week also imposed a new round of sanctions on Iran’s oil sales targeting entities including Shouguang Luqing Petrochemical, a “teapot,” or independent refinery in east China’s Shandong province, and vessels that supplied oil to such plants in China, the top buyers of Iranian crude.

The market was also buoyed by American Petroleum Institute data that showed US crude inventories fell by 4.6 million barrels last week, a sign of healthy demand for fuel in the world’s largest economy.

Analysts polled by Reuters were expecting a decline of 1 million barrels.

Official US government data on crude inventories is due on Wednesday.

The upswing in oil prices is a temporary phenomenon, with the potential economic slowdown due to Trump’s tariffs keeping a lid on price gains, Phillip Nova’s Sachdeva said.

Further capping oil prices, the US reached deals with Ukraine and Russia to pause attacks at sea and against energy targets, with Washington agreeing to push to lift some sanctions against Moscow.

Kyiv and Moscow both said they would rely on Washington to enforce the deals, while expressing skepticism that the other side would abide by them.


Tesla says it will launch in Saudi Arabia in April

Tesla says it will launch in Saudi Arabia in April
Updated 5 min 16 sec ago
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Tesla says it will launch in Saudi Arabia in April

Tesla says it will launch in Saudi Arabia in April

RIYADH: Tesla will launch in Saudi Arabia early next month, according to a post announcing the opening on the company’s website.

Elon Musk’s electric vehicle brand trades in other countries in the Middle East, but not in Saudi Arabia, the Gulf region’s largest market.

Tesla has seen EV sales slump in Europe and the brand has been targeted by a wave of protests in the US since Musk, the company’s CEO, became an adviser to US President Donald Trump and began sweeping cuts to the federal government.

The launch event in Riyadh, scheduled for April 10, will display Tesla’s electric vehicles and products powered by solar energy, the post said.

“Experience the future of autonomous driving with Cybercab, and meet Optimus, our humanoid robot, as we showcase what’s next in AI and robotics,” it added, without saying when the products would go on sale in the Kingdom.

Tesla’s sales and market share in Europe have fallen this year even as EV registrations on the continent have grown.

Musk’s brand has sold 42.6 percent fewer cars in Europe so far this year, data from the European Automobile Manufacturers Association showed on Tuesday, as Musk has stirred controversy globally.

Activists across the US have staged so-called “Tesla Takedown” demonstrations over Musk’s role leading the Department of Government Efficiency, which has cut thousands of jobs, frozen foreign aid and canceled thousands of programs and contracts.

The Wall Street Journal reported in 2023 that Saudi Arabia was in early talks for Tesla to establish a factory in the kingdom. Musk denied the report.

The Kingdom has been trying to shift its economy away from oil, while its sovereign wealth fund is the majority investor in Lucid Group — one of the EV startups looking to challenge Tesla. 


IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout

IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout
Updated 26 March 2025
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IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout

IMF reaches staff-level agreement with Pakistan on first review of $7 billion bailout
  • Review will ensure “total access over the 28 months of around $1.3 billion,” the IMF said
  • Islamabad secured the $7 billion EFF last summer to help claw its way out of economic crisis

KARACHI: IMF staff and Pakistani authorities have reached a staff-level agreement on the first review under Pakistan’s Extended Fund Facility (EFF) and on a new arrangement under the Resilience and Sustainability Facility (RSF), the IMF said on Tuesday. 

Islamabad secured the $7 billion EFF last summer to help claw its way out of an economic crisis, with an immediate disbursement of about $1 billion.

“The strong implementation of the EFF-supported program continues, and the authorities remain committed to advancing a gradual fiscal consolidation to sustainably reduce public debt, maintaining a sufficiently tight monetary policy to keep inflation low, accelerating cost-reducing energy sector reforms to enhance its viability, and implementing Pakistan’s reform agenda to accelerate growth, while strengthening social protection and health and education spending,” the IMF said in a statement as it announced the staff-level agreement. 

The agreement comes after an IMF team led by Nathan Porter held discussions from February 24-March 14 in Karachi and Islamabad.

The review will ensure “total access over the 28 months of around $1.3 billion,” the IMF said.

“The staff-level agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about $1.0 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to about $2.0 billion.”

Porter said over the past 18 months, Pakistan had made significant progress in restoring macroeconomic stability and rebuilding confidence despite a challenging global environment. 

“While economic growth remains moderate, inflation has declined to its lowest level since 2015, financial conditions have improved, sovereign spreads have narrowed significantly, and external balances are stronger,” the statement said. 

Porter said it was critical to entrench the progress achieved over the past one and a half years, building resilience by further strengthening public finances, ensuring price stability, rebuilding external buffers and eliminating distortions in support of stronger, inclusive and sustained private sector-led growth.

The IMF program has played a key role in stabilizing Pakistan’s economy and the government has said the country is on course for a long-term recovery.

Meanwhile, the RSF will support Pakistan’s efforts in building resilience to natural disasters, enhancing budget and investment planning to promote climate adaptation, improving the efficient and productive use of water, strengthening the climate information architecture to improve disclosure of climate risks, and aligning energy sector reforms with mitigation targets.


Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion

Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion
Updated 25 March 2025
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Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion

Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion
  • Reko Diq, one of the world’s largest underdeveloped copper-gold mine, is jointly owned by Canadian mining firm Barrick Gold Corp. and Pakistan
  • Feasibility study shows project has a mining life of 37 years and is expected to yield 13.1 million tons of copper and 17.9 million ounces of gold

KARACHI: Pakistani state-owned Oil & Gas Development Company Ltd. (OGDCL) and Pakistan Petroleum Ltd. (PPL) have increased their investments in the Reko Diq gold and copper mining project to $1.25 billion, the energy firms said in separate filings in the Pakistan Stock Exchange (PSX).
The OGDCL and PPL, each holding 8.33 percent stake in the multi-billion-dollar project through Pakistan Minerals (Private) Limited, have completed their feasibility studies. The third state-owned shareholder is Government Holdings (Private) Limited, according to the stock filings.
Each of the two oil and gas explorers have decided to increase their funding commitment with respect to the project, reflecting their pro rata share of total capital investment, inclusive of project financing costs, to $627 million. The financing cost is to be adjusted according to the actual project cost and inflation.
On Tuesday, the Economic Coordination Committee (ECC) of the federal cabinet also approved a summary regarding the Reko Diq project and changes in its overall development plan, the Finance Division said in a statement.
“The ECC took up a summary by the Petroleum Division regarding the Reko Diq Project and changes in its overall development plan and related financial commitments and project finance considerations due to inflation and enhanced scope of the project concerning capacity, energy mix, alternative water supply options and updated processing plants and machinery,” the statement read.
“The ECC noted the factors leading to the project escalations, and approved the proposals contained in the summary with the directions to the Ministries of Petroleum & Finance to continue close coordination with a view to ensuring timely implementation of all agreed actions.”
Reko Diq, one of the world’s largest underdeveloped copper-gold mine, is jointly owned by Canadian mining firm Barrick Gold Corp. and Pakistan. Out of the total shareholding of Reko Diq project, 25 percent is held by the provincial government of Balochistan — 15 percent on a fully funded basis through Balochistan Mineral Resources Limited and 10 percent on a free carried basis — and 50 percent is held by Barrick Gold Corporation which is the operator of the project.
As per the estimates, the increase in copper and gold prices has offset the impact of higher project costs, according to the two energy firms. The feasibility study of the project shows it has a mining life of 37 years and is expected to yield 13.1 million tons of copper and 17.9 million ounces of gold.
The project will be executed in two phases, with the phase one having an estimated capital outlay of $5.6 billion that is exclusive of the financing costs and inflation. It is planned to be funded through a limited-recourse project financing facility of up to $3 billion with the remaining funded through shareholder contributions, the OGDCL and PPL said.
The energy companies plan to fund the second phase through a mix of revenue generation from the project, additional project financing and shareholder contributions, if required. Under the updated feasibility study phase one is planned to process 45 million tons per annum (Mtpa) of mill feed from 2028. While phase two is planned to double the processing capacity to 90 Mtpa by 2034.
The project will leverage five of the currently identified 15 porphyry surface expressions within the current mining lease, highlighting substantial future growth potential. Negotiations for the proposed project financing are ongoing.


Closing Bell: Saudi main index closes in red at 11,706

Closing Bell: Saudi main index closes in red at 11,706
Updated 25 March 2025
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Closing Bell: Saudi main index closes in red at 11,706

Closing Bell: Saudi main index closes in red at 11,706

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 71.87 points, or 0.61 percen,t to close at 11,706.21. 

The total trading turnover of the benchmark index was SR5.47 billion ($1.46 billion), with 72 of the listed stocks advancing and 161 declining. 

The Kingdom’s parallel market Nomu gained 3.11 points to close at 30,613.74, while the MSCI Tadawul Index edged down by 0.65 percent to 1,483.55. 

The best-performing stock on the main market was Umm Al Qura for Development and Construction Co. The firm’s share price surged by 7.69 percent to SR21.

The share price of Abdullah Saad Mohammed Abo Moati for Bookstores Co. increased by 3.54 percent to SR38, and Bawan Co. also saw its stock price rise by 2.9 percent to SR49.65.

Conversely, the share price of MBC Group Co. dropped by 5.51 percent to SR44.60. 

On the announcements front, Perfect Presentation for Commercial Services Co. said that its net profit for 2024 reached SR163.33 million, representing a rise of 26.33 percent compared to the previous year.

In a Tadawul statement, the company revealed that its gross profit increased by 19.26 percent year on year in 2024 to reach SR250.92 million. 

The share price of Perfect Presentation for Commercial Services Co. dropped by 1.19 percent to SR13.26.

Alamar Foods Co. said its net profit stood at SR35.01 million in 2024, representing a decline of 38.11 percent compared to the previous year. 

In a Tadawul statement, the food company revealed that the decline in net profit was due to weaker sales driven by ongoing regional geopolitical issues. 

The stock price of Alamar Foods Co. edged down by 1.39 percent to SR70.80.