Economic impact of New Murabba: Riyadh’s futuristic urban marvel

Drawing inspiration from the Najdi architectural style, the cube shaped structure will add a new dimension to the Riyadh skyline. (Supplied)

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Updated 45 sec ago

Reem Walid

December 14, 2024 22:48

Economic impact of New Murabba: Riyadh’s futuristic urban marvel

Project set to transform capital by creating a new city district that acts as a portal to a whole new experience

Updated 45 sec ago

Reem Walid

December 14, 2024 22:48

RIYADH: Amid Saudi Arabia’s bold quest to break free from its oil dependency, transformative giga-projects are emerging as game changers, paving the way for a vibrant, diversified economy.

One development that stands out is the New Murabba project, which is set to transform Riyadh by creating a new city district that acts as a portal to a whole new experience.

Launched in 2023 by Crown Prince Mohammed bin Salman, New Murabba will cover 19 sq. km., creating a dynamic new city area in the Kingdom’s capital.

This project promises an exceptional blend of living, working, and entertainment, developing over 25 million sq. m. to include residential units, hotels, retail spaces, and community amenities.

The sheer scale and ambition of this development are consummate with Vision 2030 and its far-reaching transformation of the Kingdom.

Amer Lahham, Partner of public sector practice at Kearney Middle East and Africa

Spearheaded by the New Murabba Development Co., it will also feature convenient transportation options and a prime location just 20 minutes from the airport.

“New Murabba is a bold project that will further Saudi’s vision in creating a vibrant economic ecosystem, attracting investments across sectors, emphasizing sustainable urban planning, creating advanced technical jobs, and further enriching cultural landscape of the Kingdom,” said Karim Shariff, head of Bain and Co.’s Europe, Middle East, and Africa Construction, Building Products, Real Estate and B2B Services sector.

“The opportunity to create an innovative integrated ecosystem is a one of a kind,” Shariff added.

New Murabba will see real estate distributed across 18 communities, with an estimated population exceeding 400,000.

New Murabba is a bold project that will further Saudi’s vision in creating a vibrant economic ecosystem.

Karim Shariff, head of Bain and Co.’s Europe, Middle East, and Africa Construction, Building Products, Real Estate

This destination will serve as a model for urban planning, boasting seamless transportation and sustainable infrastructure.

It will accommodate over 100,000 homes, 9,000 hotel rooms, and 500,000 sq. m. of retail space. It will also feature various entertainment venues, educational institutions, health care facilities, and a 45,000-seat stadium.

The downtown area will be designed to ensure that green spaces and essential services are accessible within a 15-minute radius.

Central to the project is the Mukaab — designed to be a premier destination featuring a variety of retail, cultural, and tourist attractions, as well as residential and hotel accommodations, commercial areas, and recreational amenities.

Drawing inspiration from the Najdi architectural style, the cube shaped structure will add a new dimension to the Riyadh skyline.

New Murabba aims to establish a central hub to drive innovation and provide a platform for attracting businesses and talent.

Camilla Bevilacqua, Partner at Arthur D. Little

Camilla Bevilacqua, partner at international management consulting firm Arthur D. Little, said: “The main objective of New Murabba is to enhance Riyadh’s competitiveness and create an iconic and enduring landmark that will help position Riyadh on the global map as one of the best cities to live and work in. New Murabba aims to establish a central hub to drive innovation and provide a platform for attracting businesses and talent.”

Amer Lahham, partner of public sector practice at Kearney Middle East and Africa added that “the sheer scale and ambition of this development are consummate with Vision 2030 and its far-reaching transformation of the Kingdom.”

He went on to say: “The anchor structure, the cube, can become a symbol of the capital, Riyadh, and the significant effect Vision 2030 has had on the city’s urban landscape and skyline.

“As such, the development is promising to be one of Riyadh’s main touristic attractions, becoming a main contributor to the city and Kingdom’s tourism and hospitality sector.”

Opportunities created by New Murabba

The project is set to bring about several economic opportunities for local businesses and the broader Riyadh economy.

“New Murabba has the potential to become a hub for innovation and collaboration, serving as a magnet and launchpad for sectors like the creative industry. This will have a direct and indirect positive impact on Riyadh’s economy,” Arthur D. Little’s Bevilacqua said.

“By focusing on high-quality education, the project will attract talent and convert that talent into new business opportunities,” she added.

The partner went on to note that New Murabba could provide a platform for young entrepreneurs to create and commercialize innovative brands, retail concepts, and cutting-edge, entertainment-driven technologies that will generate significant footfall.

New Murabba project impact on economy, job creation

With the introduction of over 100,000 residential units and various commercial spaces, several types of jobs are expected to emerge, thereby impacting the economy as well as the local labor market.

From Bain and Co.’s perspective, Shariff said: “New Murabba project is poised to be a catalyst for economic growth and diversification. We anticipate over 300,000 direct and indirect jobs to be expected across a variety of sectors including construction, hospitality, retail, green technology, mobility, and innovation given the sheer scale of the development.”

He added: “The project will also foster partnerships between local and international firms, encouraging knowledge transfer, investment, and collaborative opportunities.”

From ADL’s side Bevilacqua said New Murabba will “redefine living standards”, with a focus on integrating nature, health, and wellness to create an environment that attracts residents and visitors alike.

“Driven by unique products developed by creative minds, New Murabba will transform the city’s shopping and leisure experience,” she added.

On behalf of Kearney, Lahham believes that the “futuristic and unique nature” of the project should make for a differentiated product that will further elevate key economic sectors.

The Kearney representative believes New Murabba will result in the creation of a significant number of jobs, adding: “Property management should be an interesting space to monitor in this regard, with the new cube becoming a magnet for a sophisticated workforce that will operate and maintain the anchor asset, The Cube — a complex, highly digitized, experiential structure.”

Topics: New Murabba Riyadh Saudi giga-projects

Tech-savvy Saudis push consumer fintech to new heights

Updated 6 sec ago

Nour El-Shaeri

December 14, 2024 22:30

Tech-savvy Saudis push consumer fintech to new heights

More financial products tailored to meet needs of expanding market

Updated 6 sec ago

Nour El-Shaeri

December 14, 2024 22:30

RIYADH: Saudi Arabia’s tech-savvy population is pushing consumer fintech to new heights, with innovations such as buy now, pay later gaining significant traction, according to industry experts.

In an interview with Arab News, Arjun Singh, partner and global head of fintech at Arthur D. Little Middle East, described the Kingdom’s consumer finance landscape as undergoing a natural evolution, with an increasing array of financial products tailored to meet the diverse needs of its expanding market.

“There is no doubt that the market is maturing, and we are witnessing growth across multiple consumer finance segments,” he said.

Types of personal lending

Singh pointed to traditional forms of personal lending and credit cards offered by banks and other financial institutions, which continue to grow, “albeit at a slower pace than was anticipated a few years ago.”

Other segments include microfinance and microloans, targeting underserved populations such as small and medium-sized enterprises and low-income individuals. “These products seek to promote financial inclusion by extending credit access to underserved populations,” he said.

Emerging fintech solutions are also playing a significant role. Singh noted the rise of peer-to-peer lending in Saudi Arabia, which, although still in its early stages, is gaining momentum.

“P2P lending is emerging as an alternative to traditional banking credit, facilitating loans between individuals without intermediaries,” he explained. Several fintech players are currently operating within the Saudi Central Bank’s Sandbox, experimenting with new approaches to consumer finance.

Earned Wage Access is another growing segment in the Kingdom’s evolving financial ecosystem.

EWA solutions allow employees to access their earned wages before payday, offering much-needed financial relief.

“This service helps alleviate financial stress for workers, particularly during times of economic uncertainty,” Singh said, citing the recent partnership between Al Raedah Finance and Abhi as an example of this trend.

In addition to these innovations, digital wallets and mobile payments, such as stc pay and Apple Pay, are reshaping how consumers access and manage their funds.

While these solutions do not strictly fall under the consumer finance category, Singh noted that they have had a significant impact on behavior in Saudi Arabia. “They have changed the way consumers manage and access their funds,” he stated.

The power of strong regulations

According to Abdulla Al-Moayed, CEO of open banking leader Tarabut, consumer lending growth is further supported by strong regulatory backing from the Kingdom’s central bank, which has played a proactive role in introducing frameworks that encourage fintech growth while ensuring consumer protection.

As a result, Saudi Arabia now hosts a highly competitive consumer finance sector with a wide range of payment products offering transparency, flexibility, and ease of use.

“We are seeing, today, a deeper focus on building a more personalized and accessible financial ecosystem,” Al-Moayed told Arab News. “Open Banking-enabled financing solutions, digital payments, micro-financing, and buy now, pay later are all coming to the forefront as customer demand focuses on digitized interactions and more intuitive and personalized financing services,” he added.

There is no doubt that the market is maturing, and we are witnessing growth across multiple consumer finance segment.

Arjun Singh, Partner and global head of fintech at Arthur D. Little Middle East

These developments are promoting greater inclusion in the financial sector and streamlining services for consumers.

Cultural and economic factors have also played a crucial role in the appeal of consumer lending compared to other financial options in Saudi Arabia.

Powered by BNPL

BNPL has emerged as a prominent force in the Kingdom’s consumer finance landscape.

Al-Moayed explained that BNPL aligns with the cultural and religious preferences of many Saudi consumers.

“For many Saudi consumers, BNPL provides a more culturally acceptable alternative to traditional credit, as it is framed as a manageable, interest-free option rather than long-term debt accumulation,” he noted.

We are seeing, today, a deeper focus on building a more personalized and accessible financial ecosystem.

Abdulla Al-Moayed, CEO and founder of Tarabut

This structure fits more comfortably within the guidelines of Shariah-compliant finance, making it a more attractive choice for consumers who might otherwise avoid traditional credit options.

“We have been observing a surge in demand for BNPL spearheaded by the likes of Tabby and Tamara,” Singh said.

According to Singh, the Saudi BNPL market is expected to grow from $1.4 billion in 2024 to $2.8 billion by 2029, at a compound annual growth rate of over 10 percent.

Initially, BNPL targeted younger, digitally savvy consumers with flexible, interest-free alternatives to traditional credit options, particularly for discretionary purchases such as fashion and clothing.

Trust and familiarity with BNPL services are also growing in the Kingdom.

“As more local BNPL players enter the market and build partnerships with trusted brands, consumers are more willing to use BNPL services as a safe, reliable, and more accessible alternative to traditional payment options,” Al-Moayed said.

The growing youth population in Saudi Arabia — who value transparency, convenience, and speed — are especially receptive to non-traditional financial solutions that provide instant gratification without long-term financial commitments.

“BNPL offers digital-first, flexible, transparent, and accessible credit facilities,” he said. This demographic, known for being tech-savvy and financially conscious, has embraced BNPL as a key part of the ongoing transformation of Saudi Arabia’s financial services sector.

Al-Moayed emphasized that future iterations of BNPL will likely be shaped by how the model leverages open banking, enabling it to democratize financial services further, enrich data for business growth, and empower consumers to take more control of their financial futures.

Singh explained that BNPL’s user base is now expanding as the service evolves and is nowbeing offered in multiple variants across a range of sectors.

The model has even expanded into the business-to-business space, offering companies access to short-term, interest-free installment options without the stringent credit scrutiny that often accompanies traditional loans.

“It solved the problem of liquidity which both consumers and businesses face from time to time,” Singh remarked.

Al-Moayed also pointed to the ongoing digital transformation driven by the Saudi government’s Vision 2030 initiative, which is accelerating the shift to a digital-first economy across all sectors, including retail and finance.

“The Saudi e-commerce market has been expanding rapidly,” he said, with BNPL’s integration into mobile apps and e-commerce platforms further widening its appeal.

“BNPL’s integration seamlessly taps into an even wider consumer base, expanding its appeal across the board,” Al-Moayed concluded.

Topics: Start-up of the Week Savvy

Rising geopolitical tensions impact global path toward net-zero emissions: WEF

Updated 13 December 2024

Zaira Lakhpatwala

December 13, 2024 22:17

Rising geopolitical tensions impact global path toward net-zero emissions: WEF

Updated 13 December 2024

Zaira Lakhpatwala

December 13, 2024 22:17

DUBAI: Rising geopolitical tensions, such as those in the Middle East, impact the global path toward net-zero emissions by driving up energy prices and straining global supply chains.

This is one of the findings of the World Economic Forum’s latest edition of the Net-Zero Industry Tracker, which tracks the progress of energy transition in eight sectors — steel, aluminum, cement, primary chemicals, oil and gas, aviation, shipping and trucking — that account for nearly 40 percent of global emissions.

The tracker “highlights opportunities and challenges to further accelerate GHG (greenhouse gas) emissions reductions in eight industrial and transport sectors that all play fundamental roles in driving global economic activity and connectivity, and in which reducing emissions can be challenging,” said Espen Mehlum, head of energy transition intelligence and regional acceleration at the Centre for Energy and Materials at WEF.

These eight sectors “achieved an impressive 0.9 percent reduction in absolute emissions from 2022 to 2023, compared to global energy-related emissions, which rose by 1.3 percent in the same period,” he told Arab News.

The current rate of progress, however, is not enough to meet net-zero targets. This will require an estimated $30 trillion in additional investments by 2050, with 57 percent coming from industries other than the eight mentioned in the report, as well as “good policies, technological progress and demand for green products,” said Mehlum.

The tracker highlights the role of data and artificial intelligence as powerful tools to support the transition to net zero.

The use of generative AI holds the potential to improve capital efficiency by 5-7 percent, reducing capital requirements by $1.5 trillion to $2 trillion in the eight sectors.

However, the tracker cautions against the excessive use of AI, which is expected to raise electricity demand.

The oil and gas sector represents 10 percent of global GHG emissions — the highest among the eight analyzed — and 14 percent of global carbon dioxide equivalent emissions.

Saudi Arabia was the second-most oil-producing country (12 percent) after the US (20 percent) in 2023.

The Kingdom also ranked second, followed by the UAE and Kuwait in third and fourth place, in terms of countries with the lowest CO2 emissions from oil production in 2022.

Methane emissions make up nearly half of all GHG emissions from oil and gas operations, so to achieve net zero in this sector, WEF suggests accelerating reductions in methane emissions, incentivizing these reductions, and increasing investments in electrification to help manage costs.

The report stressed the need for markets outside Europe and the US, which are already advanced, to ramp up efforts in scaling methane abatement policies.

It also spotlighted the importance of international collaborations such as the Oil and Gas Decarbonization Charter, a global industry charter dedicated to accelerating climate action within the industry, and the UAE-US Partnership for Accelerating Clean Energy.

Topics: Net Zero clean energy WEF

Saudi e-commerce sales using Mada cards hits $5bn milestone

Updated 13 December 2024

Dayan Abou Tine

December 13, 2024 13:20

Saudi e-commerce sales using Mada cards hits $5bn milestone

Updated 13 December 2024

Dayan Abou Tine

December 13, 2024 13:20

RIYADH: Saudi e-commerce sales using Mada cards reached SR18.34 billion ($4.89 billion) in October – an annual increase of around 37 percent, recent data revealed.

According to the Kingdom’s central bank, also known as SAMA, this figure includes online shopping payments, in-app purchases and e-wallets, and excludes transactions by Visa, MasterCard and other credit cards.

Mada cards are Saudi Arabia’s national payment cards, offering debit and prepaid services within the network. They use Near Field Communication for contactless payments, allowing secure transactions at retailers and online, and play a key role in supporting the country’s cashless economy.

The number of e-commerce transactions also increased by 29.3 percent on a year-on-year basis to reach around 101 million in October.

The prevalence of smartphones, with a 98 percent penetration rate according to the Kingdom’s Fashion Commission, highlights the digital readiness of Saudi consumers compared to advanced markets like the US, which has a 90 percent rate, and the UK with 80 percent.

The Kingdom’s youthful and increasingly affluent population is embracing online shopping, spurred by rising disposable incomes and growing awareness of e-commerce benefits like convenience and cost savings.

Saudi Arabia’s per capita gross domestic product is on a steady rise, with the IMF forecasting a 15.95 percent increase by 2029, reaching $38,124.66.

This growing individual income is enhancing purchasing power, spurring demand for fashion, apparel, and other consumer goods. Combined with government initiatives to promote cashless transactions and local brand development, these trends are creating ripe opportunities for e-commerce players.

Fashion’s role in e-commerce growth

According to a study by Mordor Intelligence the fashion and apparel sector is a major driver of the Saudi online retail sector.

Saudi Arabia’s fashion e-commerce market was valued at nearly $4 billion in 2023 and is expected to reach $7 billion by 2028, according to a 2024 report by the Kingdom’s Fashion Commission.

This growth is driven by increased digital exposure, evolving consumer sophistication, and strong government initiatives aimed at fostering a robust digital economy.

The Kingdom’s Fashion Commission’s 100 Saudi Brands initiative exemplifies this effort, spotlighting local designers and promoting Saudi craftsmanship on a global scale.

By addressing consumer pain points and integrating innovative technologies like virtual try-ons, fashion brands can further capitalize on this thriving market.

With a combination of local and international collaboration, the Kingdom’s fashion e-commerce sector is poised for sustained growth in the coming years.

The report highlighted that 65 percent of the population is under 40, a demographic renowned for their online shopping preferences.

These groups are among the most active online shoppers globally, turning to social media platforms and brand websites for fashion inspiration and purchases.

Adding to the allure of the Saudi market, the Kingdom is home to nearly 130,000 millionaires, a figure projected to rise to 226,000 by 2030. This affluent demographic, known for their financial confidence and affinity for luxury, is poised to increase local spending as high-end international brands expand their Saudi presence.

Notably, these high-income consumers spend significantly more than their global counterparts, with 30 percent planning to boost their expenditures, reflecting a strong appetite for premium clothing and accessories, according to the Fashion Commission.

Social media platforms, particularly Instagram and Snapchat, have emerged as critical sources of inspiration for shoppers in the Kingdom.

The Saudi Fashion Commission noted that 50 percent to 60 percent of women use these platforms to discover new trends, while men often rely on YouTube for fashion insights.

This underscores the importance of influencer marketing and targeted digital campaigns in driving brand awareness and engagement within the Kingdom.

Transforming digital infrastructure

According to Mordor Intelligence, Saudi Arabia has invested over $24.8 billion into its digital ecosystem over the past six years, significantly enhancing internet quality and coverage.

As a regional leader, it was among the first in MENA to deploy 5G networks, with 77 percent nationwide coverage – well above global averages – and 94 percent coverage in Riyadh, cementing its position as a global frontrunner in connectivity.

Global companies are seizing opportunities in Saudi Arabia’s expanding e-commerce market.

In October, Mastercard introduced local processing for e-commerce transactions, bolstering secure and efficient payment options.

Similarly, TBS Holding announced plans to use artificial intelligence technologies to support digital transformation efforts in Saudi Arabia, reflecting the Kingdom’s broader ambitions for a thriving digital shopping ecosystem.

According to online platform Setup in Saudi, the Kingdom’s e-commerce market is led by six major players, including Noon, backed by the Public Investment Fund, Amazon, which entered via Souq.com, and Jarir Bookstores, a local retail giant with a strong online presence.

Other key companies include Namshi, which caters to regional fashion, while Extra Stores focuses on electronics and home appliances.

AliExpress has a shrinking share as local platforms expand. These leaders exemplify the sector’s rapid growth and evolving consumer trends.

The Fashion Commission highlighted the seamless integration of digital and physical retail as the rise of e-commerce does not signify the decline of brick-and-mortar stores.

Instead, the Saudi market is embracing an omnichannel approach, where online and offline experiences converge. Approximately 75 percent of fashion-buying behavior in Saudi Arabia is influenced by digital channels.

This includes 38 percent who research online with purchases made offline and 25 percent doing pure online transactions. Challenges like uncertainty about sizing and fit remain key barriers to greater e-commerce adoption, with 40 percent of consumers citing this as a primary concern.

Key challenges for this sector as highlighted by the Fashion Commission include delivery lead times, return processes, and last-mile logistics. While 30 percent of Saudi consumers expect delivery within two to three days, this demand can only be met through local fulfillment centers.

Historically, products were shipped from the UAE or Europe, causing delays and higher costs.

To address this, initiatives like Riyadh’s Special Integrated Logistics Zone support localized operations, helping reduce delivery times. Companies like Chalhoub, Apple, and Amazon have already set up fulfillment centers, enhancing distribution efficiency. For example, Farfetch has notably improved its delivery times.

On payments, the government introduced e-payment regulations in 2018 to increase consumer trust and aims to shift 70 percent of transactions to digital methods.

Solutions like BNPL providers Tabby and Tamara, alongside mobile wallets like Apple Pay, are accelerating this transition.

The market remains fragmented, with the top three e-commerce platforms Shein, Namshi, and Centrepoint holding a combined 22 percent market share.

Luxury fashion remains underrepresented, presenting opportunities for growth as brands like Farfetch and local players like Level Shoes expand their presence.

Topics: e-commerce Mada Online shopping

COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

Updated 13 December 2024

MIGUEL HADCHITY

December 13, 2024 12:02

COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

Updated 13 December 2024

MIGUEL HADCHITY

December 13, 2024 12:02

RIYADH: COP16 witnessed unprecedented financial pledges totaling over $12 billion for land restoration and drought resilience initiatives, with Saudi Arabia leading from the front.

Held in Riyadh from December 2-13 under the theme “Our Land. Our Future,” COP16 brought together over 196 countries and numerous international organizations, marking a crucial milestone in the fight against environmental challenges that threaten billions of people worldwide.

Funding pledges seen at the event included £10 billion from the Arab Coordination Group to finance global projects combating land degradation, desertification, and drought.

Additional contributions included $1 billion each from the OPEC Fund and the Islamic Development Bank, and $150 million from Saudi Arabia.

A legacy of action and collaboration

Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley opened the conference with a call for intensified international collaboration to combat desertification, particularly in regions most affected by climate change.

“The Middle East, among the regions most impacted by these challenges, stands ready to lead through collaboration and innovation,” Al-Fadhley stated.

He emphasized Saudi Arabia’s Vision 2030 as a cornerstone of the Kingdom’s green agenda.

This vision aims to restore 40 million hectares of degraded land, increase national reserves by 30 percent, and achieve a renewable energy mix of 50 percent by 2030.

The Saudi Green Initiative, launched in 2021, has already led to the planting of 95 million trees and the restoration of 111,000 hectares of land.

Outgoing COP15 President Alain-Richard Donwahi of Côte d’Ivoire handed over leadership with a message of urgency, while UNCCD Executive Secretary Ibrahim Thiaw underscored that nearly 40 percent of the Earth’s land is degraded, impacting over 3 billion people.

He warned that failing to address land degradation could lead to intensified food insecurity, conflict, and forced migration.

Saudi Minister of Environment and COP16 President Abdulrahman Al-Fadhley. Screenshot

The Riyadh Policy Declaration

A major outcome of COP16 was the adoption of the Riyadh Policy Declaration, a document drafted by the newly formed Friends of the Chair group.

This declaration provides a comprehensive framework for global land restoration, drought resilience, and sustainable land management. The initiative showcases Saudi Arabia’s dedication to fostering international cooperation and achieving tangible results in the fight against desertification.

The Kingdom’s Deputy Minister for Environment, Osama Faqeeha, highlighted the significance of this collaborative effort, saying: “The Friends of the Chair group ensures that the outcomes of COP16 are not just promises but actionable steps toward global sustainability”.

Faqeeha also underscored the urgent need for private sector investment to bridge the estimated $355 billion annual funding gap for global land restoration.

“The restoration economy has the potential to unlock trillions in economic benefits, but it requires the commitment of all sectors,” Faqeeha stated.

Minister of Investment Khalid Al-Falih announced three major renewable energy projects developed in collaboration with French firms, emphasizing the Kingdom’s growing influence in the global green finance market.

“The future of finance is green, and Saudi Arabia is positioning itself as the global hub for sustainable investments,” Al-Falih said.

Innovative projects and sustainability initiatives

Saudi Arabia highlighted several transformative projects aimed at balancing economic growth with environmental preservation.

The National Red Sea Sustainability Strategy is a flagship initiative to protect 30 percent of the Red Sea’s marine and coastal ecosystems by 2030. This strategy is expected to contribute SR33 billion ($8.78 billion) annually to the economy and create 120,000 jobs.

John Pagano, CEO of Red Sea Global, emphasized the project’s commitment to regenerative tourism and renewable energy. “We are planting 50 million mangrove trees and expanding coral reef protection, aligning with our vision of sustainable development,” Pagano said.

In a landmark announcement, King Abdullah University of Science and Technology launched the International Water Research Center to address global water scarcity and pollution challenges.

The center will develop innovative water solutions in collaboration with the Ministry of Environment, Water, and Agriculture.

Saudi climate envoy Adel Al-Jubeir highlighted the link between land degradation and forced migration, noting that 100 million hectares of land are lost annually, exacerbating displacement and security crises.

“When people cannot grow food, they migrate, leading to tension and conflict,” Al-Jubeir warned. The UNCCD’s Thiaw echoed these concerns, emphasizing that land restoration is crucial for global stability and security.

Thematic days and key dialogues

COP16 featured several thematic days addressing critical issues like sustainable agri-food systems, drought resilience, and rangeland protection.

Agri-Food System Day coincided with World Soil Day, highlighting that unsustainable farming practices could lead to a 10 percent decline in global crop yields by 2050.

Faqeeha called for redirecting harmful agricultural subsidies toward sustainable practices to prevent further degradation.

Youth and technology were at the forefront of COP16 discussions. Saudi Arabia’s thriving startup ecosystem, supported by initiatives like The Garage and Vision 2030, showcased how entrepreneurship can drive sustainability.

Prince Khaled bin Alwaleed, CEO of KBW Ventures, highlighted the synergy between venture capital and sustainable development, while Ma’aden CEO Robert Wilt emphasized the role of responsible mining in enabling the global energy transition.

Global collaboration and regional leadership

The conference featured high-profile attendees, including UN Deputy Secretary-General Amina Mohammed, who called for scaled-up restoration efforts and stronger international cooperation.

Mayor of Riyadh Faisal bin Abdul Aziz bin Ayyaf underscored Riyadh’s ambition to serve as a model for sustainable urban development.

Hungary’s representative praised COP16 for addressing gender equality, acknowledging the essential role of women in combating desertification.

Discussions also highlighted the need for international cooperation to address shared challenges, such as sand and dust storms, drought, and land degradation.

A path forward

Saudi Arabia’s successful hosting of COP16 demonstrated its commitment to shaping global environmental policies and fostering innovation.

As attention turns to COP17 in Mongolia, the momentum generated in Riyadh is expected to drive sustained action toward land restoration, drought resilience, and a greener future for all.

Topics: COP16 Green & Blue

Oil Updates – crude stabilizes on course for first weekly gain in 3

Updated 13 December 2024

Reuters

December 13, 2024 09:54

Oil Updates – crude stabilizes on course for first weekly gain in 3

Updated 13 December 2024

Reuters

December 13, 2024 09:54

SINGAPORE: Oil prices stabilized on Friday, heading for their first weekly rise since the end of November, as additional sanctions on Iran and Russia ratcheted up supply worries, while a surplus outlook weighed on markets.

Brent crude futures edged up 7 cents to $73.48 a barrel by 7:34 a.m. Saudi time, while US West Texas Intermediate crude was at $70.11 a barrel, up 9 cents.

Both contracts are on track for a weekly gain of more than 3 percent as concerns about supply disruption from tighter sanctions on Russia and Iran, and hopes that Chinese stimulus measures could lift demand in the world’s No. 2 oil consumer support prices.

Recent stabilizations came after oil defended a key technical level of $71, said Yeap Jun Rong, market strategist at IG.

“But there has not been much conviction to prompt a stronger price recovery just yet,” he added.

Chinese data this week showed crude imports grew annually for the first time in seven months in November, driven by lower prices and stockpiling.

“We have seen a bit of a recovery in refinery margins since the September lows, but don’t think it’s anything to justify the November crude import volumes,” said Warren Patterson, ING’s head of commodities research.

Crude imports by the world’s largest importer are set to stay elevated into early 2025 as refiners opt to lift more supply from top exporter Saudi Arabia, drawn by lower prices, while independent refiners rush to use their quota.

The International Energy Agency increased its forecast for 2025 global oil demand growth to 1.1 million barrels per day from 990,000 bpd last month, thanks to China’s recent stimulus measures, it said in its monthly oil market report.

However, it forecast a surplus for next year, when non-OPEC+ nations are set to boost supply by about 1.5 million barrels per day, driven by Argentina, Brazil, Canada, Guyana and the US.

“I guess with an outlook for a fairly comfortable balance (there is) little reason (for prices) to break out of this range for now,” ING’s Patterson.

Three of Canada’s biggest oil producers forecast higher output in 2025. Building on record US production, Goldman Sachs expects Lower 48 shale oil production to grow by 600,000 bpd in 2025, although growth could slow if Brent falls below $70 a barrel.

Investors are also betting that the Fed will cut borrowing costs next week and follow up next year with further reductions, after economic data showed weekly claims for unemployment insurance unexpectedly rose.

Topics: oil updates oil prices

Economic impact of New Murabba: Riyadh’s futuristic urban marvel

Economic impact of New Murabba: Riyadh’s futuristic urban marvel

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Saudi e-commerce sales using Mada cards hits $5bn milestone

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COP16: Saudi Arabia closes UN conference with bold commitments on environmental sustainability

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Economic impact of New Murabba: Riyadh’s futuristic urban marvel

Economic impact of New Murabba: Riyadh’s futuristic urban marvel

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