Uzbekistan inaugurates largest wind farm in Central Asia 

Uzbekistan inaugurates largest wind farm in Central Asia 
Uzbekistan President Shavkat Mirziyoyev inaugurated the Zarafshan wind farm. Supplied
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Uzbekistan inaugurates largest wind farm in Central Asia 

Uzbekistan inaugurates largest wind farm in Central Asia 

RIYADH: Uzbekistan has officially inaugurated Central Asia’s largest wind farm, the 500-megawatt Zarafshan facility, as part of its efforts to expand clean energy capacity. 

Developed by Abu Dhabi Future Energy Co., known as Masdar, the wind farm was launched by Uzbekistan’s President, Shavkat Mirziyoyev, in a ceremony attended by Sultan Al-Jaber, the UAE minister of industry and advanced technology. 

The Zarafshan wind farm aligns with Uzbekistan’s target to generate 40 percent of its electricity from renewable sources by 2030. It is also a key step in the country’s ambitious plan to achieve 20 gigawatts of clean energy capacity by the decade’s end. 

“The UAE and Uzbekistan’s enduring relationship is critical to a shared commitment to drive low-carbon socioeconomic progress and clean energy capacity growth,” said Al-Jaber, who is also the chairman of Masdar.  

He added: “Uzbekistan has become a leading investment destination and a clean energy hub for the region as we work to deliver our shared goal of tripling global renewable energy capacity by 2030, as outlined in the historic UAE Consensus.” 

Masdar has pledged $2 billion to Uzbekistan’s clean energy initiatives, which include projects with a combined capacity of over 2 GW. The company also has a pipeline of 4 GW of renewable projects in early development stages, according to a statement. 

UAE Minister of Energy and Infrastructure Suhail Mohamed Faraj Al-Mazrouei hailed the wind farm as a testament to Uzbekistan’s climate leadership and energy transition efforts. 

“The UAE and Uzbekistan share a common vision of sustainable development and renewable energy and Zarafshan is (a) testament to the strength of our partnership in advancing clean, emissions-free energy in Uzbekistan,” Al-Mazrouei also said.  

Masdar CEO Mohamed Jameel Al-Ramahi highlighted the project’s significance, describing it as a reflection of Uzbekistan’s bold renewable energy ambitions. 

“Uzbekistan has built upon its legacy as a vital artery on the ancient Silk Road – the historic trade route uniting east and west – becoming a key hub for renewables in the region, moving at pace and at scale to develop landmark clean energy projects and attract investment,” added Al-Ramahi.  

During the recent UN Climate Change Summit, COP29, Uzbekistan’s Ministry of Energy and Masdar signed an agreement to develop another 1-GW wind farm in the Mingbulak region. 

The Mingbulak wind farm is expected to create 1,000 jobs during construction and 60 operational roles. Once completed, it will provide clean energy to 300,000 homes in the region, the statement added. 


Saudi Arabia’s inflation holds steady at 2% in November: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in November: GASTAT 
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Saudi Arabia’s inflation holds steady at 2% in November: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in November: GASTAT 
  • On a monthly basis, the consumer price index rose slightly by 0.3 percent from October
  • GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index for November

RIYADH: Saudi Arabia’s annual inflation rate remained stable at 2 percent in November compared to the same month in 2023, driven primarily by higher housing costs, official data showed.  

According to data released by the General Authority for Statistics, housing rents increased by 10.8 percent year on year in November, while apartment rental prices surged 12.5 percent during the same period.  

Overall, costs for housing, water, electricity, gas, and other fuels rose by 9.1 percent compared to the previous year, underscoring the sector’s influence on inflation. 

Saudi Arabia’s inflation rate remains among the lowest in the Middle East and globally, highlighting the Kingdom’s effective measures to maintain economic stability and address global price pressures. 

A World Bank report released in October projected that Saudi Arabia’s inflation will remain steady at 2.1 percent in 2024 and 2.3 percent in 2025, well below the Gulf Cooperation Council average. 

“The increase in this section (housing) had a significant impact on the continuation of the annual inflation pace for November 2024 due to the weight formed by this section, which amounted to 25.5 percent,” GASTAT stated. 

The cost of personal goods and services rose by 2.7 percent year on year, driven by a 23.7 percent increase in the prices of jewelry, watches, and antiques. Restaurant and hotel expenses edged up by 1.5 percent, while the education sector saw a 2.7 percent annual increase. 

Food and beverage prices recorded a marginal rise of 0.3 percent year on year, supported by a 1.9 percent increase in meat and poultry costs. 

However, some sectors saw declines. Furnishing and home equipment prices dropped 2.9 percent year on year, with furniture, carpets, and flooring costs falling by 4.4 percent. Clothing and footwear prices decreased by 2.3 percent, while transportation costs slipped by 2.5 percent. 

On a monthly basis, the consumer price index rose slightly by 0.3 percent from October.  

“This monthly inflation index was influenced by a 0.9 percent rise in the section of housing, water, electricity, gas, and other fuels, which in turn, was affected by a 1 percent increase in actual housing rents and prices,” said GASTAT.  

The authority noted that personal goods and services prices rose by 0.5 percent month on month in November, driven by a 6.5 percent increase in insurance expenses. 

Food and beverage prices recorded a slight monthly rise of 0.2 percent, while recreation and culture costs edged up by 0.1 percent. On the other hand, expenses for clothing and footwear dropped 0.3 percent in November compared to October. 

Prices for furnishing and home equipment and communication services also declined slightly, down by 0.3 percent and 0.1 percent, respectively. Transportation and education costs showed no significant changes during the same period. 

Last month, Moody’s projected that Saudi Arabia’s inflation would remain under control, at 1.6 percent in 2024 and 1.9 percent in 2025, before slightly accelerating to 2 percent by 2026. 

Wholesale Price Index 

In a separate report, GASTAT revealed a 1.4 percent year-on-year increase in Saudi Arabia’s Wholesale Price Index for November. The rise was largely driven by a 2.7 percent increase in other transportable goods, including a 12 percent jump in refined petroleum product prices. 

Agriculture and fishery product prices rose by 3.3 percent, while metal products, machinery, and equipment saw a modest 0.2 percent increase. Conversely, food products, beverages, and textiles declined by 0.4 percent, weighed down by a 4.7 percent drop in costs for meat, fish, and dairy products. 

The report indicated that prices of ores and minerals dropped 3 percent year on year in November, driven by a similar decline in the costs of stones and sand. 

On a monthly basis, Saudi Arabia’s WPI rose by 0.2 percent in November, supported by a 1.8 percent increase in agriculture and fishery product prices. 

Food products, beverages, tobacco, and textiles saw a marginal 0.2 percent monthly rise, while expenses for transportable goods increased by 0.3 percent during the same period. 

Conversely, costs for metal products, machinery, and equipment dipped 0.2 percent, and prices of ores and minerals remained largely unchanged from October. 

Average Price Index 

In another report, GASTAT highlighted significant shifts in the average prices of goods and services across Saudi Arabia in November. 

The price of Lebanese peaches surged 27.03 percent compared to October, while local onion prices rose 17.86 percent. Green local peppers and white cabbage also saw significant increases, climbing 15.83 percent and 10.95 percent, respectively.  

Local grapes recorded a 10.46 percent rise, and the cost of Pakistani mandarins increased by 7.47 percent month on month. 

Conversely, the price of local zucchini dropped by 14.30 percent in November. Medium Africa lemon and local cucumbers also saw declines of 11.45 percent and 8.67 percent, respectively. 

In non-food goods, prices of Chilean wood decreased by 2.79 percent, while Romanian wood costs fell by 0.86 percent compared to the previous month. 


Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
Updated 14 December 2024
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Smart tech key to solving Middle East food security crisis

Smart tech key to solving Middle East food security crisis
  • Challenge of producing more food without further harming the environment intensifies

RIYADH: Increasing the use of smart technology in farming is critical if the Middle East is going to truly achieve food security, experts have told Arab News.

As agricultural productivity in the region remains vulnerable to supply chain disruption, water shortages, and conflicts, the challenge of producing more food without further harming the environment intensifies. 

Add in the consequences of climate change, and the Middle East needs to act fast — and smart — to ensure food security.

Vertical farms, increased use of data, and cross-country collaboration have all been flagged up to Arab News as key ways to tackle the short and long term challenges.

Abdel Rahman Al-Zubaidi, CEO of Ivvest, a Saudi-based agricultural technology and indoor farming company, emphasized to Arab News how his firm addresses these challenges: “Vertical farming allows exponential multiplication for the amount that can be produced in farms, enabling us to utilize vertical space and changing the way we design the production capacity from two dimensions to three dimensions.” 

He added: “This is essential for getting the best out of our limited arable lands in the Middle East, where, for instance, Saudi Arabia’s arable land was just 1.6 percent in 2021.” Available in Saudi Arabia, Ivvest’s farming “Capsule,” is a smart container farming unit empowered with IvvestOS, an operating system that brings intelligence to the facility. Using this technology, farmers can produce more than 200 plants per sq. meter, all year long, without pesticides, and while consuming 90 percent less water and land, according to the company.

Sanjay Borkar, CEO and co-founder of FarmERP, talked up the importance of innovation in an interview with Arab News, stating: “Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely. By monitoring things like soil health and water levels in real-time, farmers can fine-tune the use of water, fertilizers, and other inputs, minimizing waste and maximizing yields.” Precision agriculture, soil health management, and improved water usage techniques are part of broader efforts to adapt to climate change and protect valuable resources.Many countries are adopting climate-smart agriculture, which integrates sustainable practices that improve resilience to environmental stressors while mitigating greenhouse gas emissions.

Water scarcity: A crisis across the region

Water scarcity is perhaps the most pressing environmental issue across the Middle East. Jordan is one of the countries most affected, facing severe water stress due to the combination of traditional irrigation methods and over-reliance on depleted water resources. The UN Food and Agriculture Organization and other international organizations are promoting precision agriculture techniques, such as drip irrigation and soil moisture sensors, to enhance water use efficiency and reduce wastage. 

Vertical farming allows exponential multiplication for the amount that can be produced in farms.

Abdel Rahman Al-Zubaidi, CEO of Ivvest

Ivvest’s Al-Zubaidi explained that “indoor farming isolates the farming environment from the outside, ensuring optimal conditions for crops and reducing water loss from evaporation.” 

He noted that these methods drastically reduce the need for pesticides, further increasing sustainability.

Conflict-driven food insecurity 

While water scarcity is a severe concern, the Middle East’s food security crisis is also driven by conflict.

In correspondence with Arab News, the FAO said: “The ongoing war in Gaza has significantly exacerbated food insecurity in the broader NENA (Near East and North Africa) region by intensifying the already dire humanitarian crisis.”

The organization revealed that this conflict has disrupted supply chains, with the latest reports indicating that 95 percent of Gaza’s population faces high levels of food insecurity and nearly 343,000 people are at catastrophic risk of famine.

Local initiatives, such as urban farming and community-supported agriculture, have provided some relief to conflict-affected populations.

The impact of the Russia-Ukraine war

The global grain market has been severely impacted by the Russia-Ukraine war, with the Middle East feeling the effects more acutely than other regions. Countries including Egypt, Lebanon, and Yemen, heavily reliant on imports from these two major grain producers, are grappling with shortages.

As the conflict continues, food prices have soared, compounding the challenges faced by already vulnerable populations. The FAO’s call for investment in domestic agricultural production and the adoption of sustainable farming practices is particularly relevant for these nations.

The FAO said that hunger in Arab countries reached 59.8 million people in 2022, a 75.9 percent increase since 2000, accounting for 12.9 percent of the population compared to the global average of 9.2 percent. 

Tools like drones, sensors, and data analytics — key components of precision agriculture — help farmers and agribusiness use resources wisely.

Sanjay Borkar, CEO and co-founder of FarmERP

Al-Zubaidi addressed how Ivvest can contribute to the region’s food security: “Our technology development started after a failed project with greenhouses, which ignited thorough research. We found that traditional greenhouses, while helpful, are resource-intensive and inefficient in hot climates like ours.” 

He pointed out: “To overcome these risks, we designed and manufactured a full end-to-end indoor farming solution.” Ivvest’s vertical farming system allows producing over 240 plants per square meter, drastically enhancing productivity compared to greenhouses.

Zulfiqar Hamadani, CEO of Tanmiah Food Co., echoed the importance of local production, noting that “we must prioritize sustainable local production and develop resilient supply chains to ensure that we can meet the nutritional needs of our growing population.” 

He highlighted Tanmiah’s commitment to Saudi Arabia’s Vision 2030 food self-sufficiency goals, adding: “Saudi Arabia is taking major steps, including significant investments aimed at enhancing food security and fostering innovation in food production.”

Innovative solutions: a path to resilience

In response to these growing challenges, several countries in the Middle East are investing in innovative agricultural solutions. The FAO emphasized to Arab News the importance of “sustainable and resilient farming practices, including soil and water conservation, waste reduction, and the implementation of nature-based solutions.”

Al-Zubaidi added that the key to sustainability in farming lies in integrating innovations into the broader supply chain. 

Hamadani pointed out that the Middle East must “invest in innovative agricultural technologies such as precision farming, which optimizes resource use and minimizes waste.” He also emphasized the importance of sustainable practices that enhance soil health and water conservation.

Collaboration for a sustainable future

The FAO emphasized that collaboration between regional governments, international organizations, and local communities is crucial for building resilient food systems.

“Promoting climate-smart agriculture, such as diversified cropping systems and sustainable pest management, is crucial for enhancing agricultural resilience,” said the organization.

Al-Zubaidi added that the importance of partnerships between technology providers, distributors, and governments in achieving food security, describing them as “essential for creating a robust and sustainable food security framework.”

Hamadani also stressed the need for government support, noting that “clear policy frameworks that encourage research and development, alongside financial incentives for sustainable practices, are crucial.” He advocated for policies that support sustainable agricultural practices and reduce barriers for startups.

Borkar further elaborated, saying: “Collaborative partnerships between governments, tech companies, and local farmers are essential to share knowledge and ensure technology is accessible.” Grassroots initiatives like urban farming and water-efficient farming techniques can also  empower communities and reduce their vulnerability to external shocks.


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

Economic impact of New Murabba: Riyadh’s futuristic urban marvel
Updated 14 December 2024
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Economic impact of New Murabba: Riyadh’s futuristic urban marvel

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

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.”


Tech-savvy Saudis push consumer fintech to new heights

Tech-savvy Saudis push consumer fintech to new heights
Updated 14 December 2024
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Tech-savvy Saudis push consumer fintech to new heights

Tech-savvy Saudis push consumer fintech to new heights
  • More financial products tailored to meet needs of expanding market

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.


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

Rising geopolitical tensions impact global path toward net-zero emissions: WEF
Updated 13 December 2024
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Rising geopolitical tensions impact global path toward net-zero emissions: WEF

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

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.