On China Yangtze river, giant dam’s legacy blocks revival

The Three Gorges Project has affected many communities, including this one on the Yangtze river, forcing several to move as a result of rising waters and increased seismic activity. (Reuters)
Updated 15 November 2019
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On China Yangtze river, giant dam’s legacy blocks revival

  • Earthquakes, landslides, changing water levels and damaged ecosystems among the many issues facing Beijing

CHONGQING: The 2,000 residents of Muhe, whose village was moved to higher ground a decade ago to escape the rising Yangtze river, have tried to make the most of their remaining land by planting orchards of oranges and persimmons along its banks.

With just 110 hectares on the edge of Asia’s longest river, Muhe lost half its territory to make way for the colossal Three Gorges Project, a 185-meter dam and 660-kilometer reservoir designed to control flooding, aid navigation and generate electricity.

Beijing has allocated more than 600 billion yuan ($86 billion) since 2011 to alleviate the dam’s long-term impacts on villages like Muhe and bring the region’s deteriorating environment under “effective control.”

But many problems are unresolved, and the government has promised to spend another 600 billion yuan by 2025, said Xie Deti, a member of the Chongqing delegation of the National People’s Congress who lobbied the government to release more funds in March.

Protecting the Yangtze has become a priority for China after President Xi Jinping promised to end big and “destructive” development along the river, which stretches 6,000 kilometers from Tibet to Shanghai, supplies water to 400 million people and irrigates a quarter of the country’s arable land.

Since Xi’s orders in 2016, local governments have dismantled dams, dredged plastic junk from the water, relocated factories, banned waste discharge and restricted farming and construction all along the river.

“You can say we have undergone earth-shattering changes, especially when it comes to increasing our awareness of environmental protection,” said Liu Jiaqi, Communist Party secretary in Muhe.

But the region has been unable to evade the earth-shattering impact of the dam itself, which sits near two fault lines and has been blamed for a surge in earthquakes and the fragmentation of ecosystems, among myriad other problems.

China’s environment ministry said the region saw as many as 776 earthquakes in 2017, up 60 percent compared with a year earlier, with the highest magnitude at 5.

The total number has risen significantly since the project began, with one study from the China Earthquake Administration showing a 30-fold increase between 2003 and 2009, when the reservoir was filled.

Xie, who is also a professor at Chongqing’s Southwest University, said other challenges include algae blooms caused by fertilizer, and wastewater from tributaries polluting the river.

The government has long insisted the benefits of the dam outweigh the costs and disruptions.

But in 2011, Beijing promised to spend 1,238 billion yuan ($177.24 billion) by 2020 to try to fix them. It pledged to raise living standards, heal the environment and create a long-term mechanism to prevent geological disasters.

But less than half of the money had been spent by the end of last year, said Xie, who told Reuters he had received assurances from Beijing that the rest would come between 2020 and 2025.

So far, farmland has been restored by dredging up submerged soil. Riverbanks have been strengthened and reforested to reduce landslide risks, and “ecological barrier zones” have been built along vulnerable parts of the river.

But one government figure, who did not want to be named because of the sensitivity of the issue, said the additional funding might not be enough to solve long-term problems.

Sediment accumulating near the dam threatens to undermine flood controls. A specialist research team has been examining the problem in the Three Gorges region for more than 30 years and China has built two giant dams upstream to block silt.

The massive reservoir, which absorbs more heat than dry land, has also been blamed for increasing regional temperatures. Warmer water and the fragmentation of habitats have wreaked havoc on local fish stocks, with the Yangtze sturgeon close to extinction.

HIGHLIGHT

• China to spend extra $86 billion to fix Three Gorges.

• Giant dam hindering Xi’s Yangtze cleanup goals.

• Earthquakes in region surged 60% in 2017.

• Algae, landslides, silt still posing problems.

The dam has also caused water levels to dwindle at Poyang lake, a habitat for the critically endangered Yangtze finless porpoise.

Since the dam was built in 2006, some leaders have distanced themselves from the project. Wen Jiabao, premier from 2003 to 2012, openly criticized how it was built and castigated officials for failing to take care of more than a million displaced residents. During his visit to the Three Gorges last April, President Xi berated officials for failing to clean up the “grim” environment of the Yangtze, and reiterated his pledge to end “big construction” on the river.

But Xi also described the dam as a testament to China’s talent and self-reliance, saying it made him proud of its staff and his country.

“The issue is obviously very complicated, and it is not black and white,” said Ma Jun, founder of the Institute of Public and Environmental Affairs, a non-governmental organization in China that tracks water pollution.

“It does have both flood control and power generation functions, but on the other hand, whether the cost is too high, whether there are alternatives, I think those are what we need to study,” Ma added. “For good or bad, the heyday of dams has passed.” 


Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

Updated 20 min 21 sec ago
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Meituan looks to hire in Saudi Arabia, indicating food delivery expansion

SHANGHAI: Chinese food delivery giant Meituan is seeking to hire staff for at least eight positions based in Riyadh, in a sign it may be looking to Saudi Arabia to further its global expansion ambitions, according to Reuters.

The jobs ads, which is hiring for KeeTa, the brand name Meituan uses for its food delivery operations in Hong Kong, is seeking candidates with expertise in business development, user acquisition, and customer retention, according to posts seen by Reuters on Linkedin and on Middle Eastern jobs site Bayt.com.

Meituan did not immediately respond to a request for comment by Reuters on its plans for Saudi expansion.

Bloomberg reported earlier on Friday that the Beijing-based firm would make its Middle East debut with Riyadh as the first stop.

Since expanding to Hong Kong in May 2023, Meituan’s first foray outside of mainland China, speculation has persisted that its overseas march would continue as the firm searches for growth opportunities, with the Middle East rumored since last year to be one area of possible expansion.

“We are actively evaluating opportunities in other markets,“ Meituan CEO Wang Xing said during a post-earnings call with analysts last month.

“We have the tech know-how and operational know-how, so we are quietly confident we can enter a new market and find an approach that works for consumers there.” 


IMF opens first MENA office in Riyadh

Updated 26 April 2024
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IMF opens first MENA office in Riyadh

RIYADH: The International Monetary Fund has opened its first office the Middle East and North Africa region in Riyadh.

The office was launched during the Joint Regional Conference on Industrial Policy for Diversification, jointly organized by the IMF and the Ministry of Finance, on April 24.

The new office aims to strengthen capacity building, regional surveillance, and outreach to foster stability, growth, and regional integration, thereby promoting partnerships in the Middle East and beyond, according to the Saudi Press Agency.

Additionally, the office will facilitate closer collaboration between the IMF and regional institutions, governments, and other stakeholders, the SPA report noted, adding that the IMF expressed its appreciation to Saudi Arabia for its financial contribution aimed at enhancing capacity development in its member countries, including fragile states.

Abdoul Aziz Wane, a seasoned IMF director with an extensive understanding of the institution and a broad network of policymakers and academics worldwide, will serve as the first director of the Riyadh office.

 


Saudi minister to deliver keynote speech at Automechanika Riyadh conference

Updated 26 April 2024
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Saudi minister to deliver keynote speech at Automechanika Riyadh conference

RIYADH: Saudi Arabia’s Deputy Minister of Investment Transaction Saleh Al-Khabti is set to deliver the keynote speech at a global automotive aftermarket industry conference in Riyadh.

Set to be held from April 30 April to May 2 in the Saudi capital’s International Convention and Exhibition Center, Automechanika Riyadh will welcome more than 340 exhibitors from over 25 countries.

Al-Khabti will make the marquee address on the first day of the event, which will also see participation from Aftab Ahmed, chief advisor for the Automotive Cluster at the National Industrial Development Centre, Ministry of Industry and Mineral Resources.

Saudi Arabia’s automotive sector is undergoing a transformation, with the Kingdom’s Public Investment Fund becoming the major shareholder in US-based electric vehicle manufacturer Lucid, and also striking a deal with Hyundai to collaborate on the construction of a $500 million-manufacturing facility.

Alongside this, Saudi Arabia’s Crown Prince Mohammed bin Salman launched the Kingdom’s first electric vehicle brand in November 2022.

Commenting on the upcoming trade show, Bilal Al-Barmawi, CEO and founder of 1st Arabia Trade Shows & Conferences, said: “It is a great honor for Automechanika Riyadh to be held under the patronage of the Saudi Arabian Ministry of Investment, and we’re grateful for their continued support as the event goes from strength-to-strength.

“The insights and support we’ve already received have been invaluable, and we look forward to continuing this relationship throughout the event and beyond.”

This edition of Automechanika Riyadh will feature seven product focus areas, including parts and components, tyres and batteries, and oils and lubricants.

Accessories and customizing, diagnostics and repairs, and body and paint will also be discussed, as well as care and wash. 

Aly Hefny, show manager for Automechanika Riyadh, Messe Frankfurt Middle East, said: “The caliber of speakers confirmed to take part at Automechanika Riyadh is a testament to the event’s growth and prominence within the regional automotive market.

“We have developed a show that goes beyond the norm by providing a platform that supports knowledge sharing and networking while promoting the opportunity to engage with key industry experts and hear the latest developments, trends and innovations changing the dynamics of the automotive sector.”


Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

Updated 26 April 2024
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Aramco-backed S-Oil expects Q2 refining margins to remain steady then trend upward

SEOUL: South Korea’s S-Oil forecast on Friday that second-quarter refining margins will be steady, supported by regular maintenance in the region, then trend upward in tandem with higher demand as the summer season gets underway, according to Reuters.

Over the January-March period, the refiner said it operated the crude distillation units  at its 669,000-barrel-per-day oil refinery in the southeastern city of Ulsan at 91.9 percent of capacity, compared with 94 percent in October-December.

S-Oil, whose main shareholder is Saudi Aramco, plans to shut its No. 1 crude distillation unit sometime this year for maintenance, the company said in an earnings presentation, without specifying the time. 


Venture investments spark renaissance of Saudi innovation

Updated 26 April 2024
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Venture investments spark renaissance of Saudi innovation

RIYADH: In Saudi Arabia, a dynamic transformation is unfolding within the entrepreneurial landscape, powered by the robust growth of venture capital, which achieved an impressive 86 percent compound annual growth rate from 2019 to 2023.   

This financial infusion has been a game-changer, propelling the Kingdom past the $1 billion mark in venture capital investment last year and igniting a wave of innovative thinking among Saudi entrepreneurs. 

Simply put, VC is a category of private market investment and financing. A VC firm raises capital from investors, referred to as Limited Partners, and uses that capital to fund promising startups they have determined as likely to have high growth potential in an emerging category. 

A vibrant scene   

“The rise of venture capital in Saudi Arabia is fueling a vibrant entrepreneurial scene,” said the founder of Saudi-based VC firm Nama Ventures.   

Offering a unique perspective on this financial phenomenon, Mohammed Al-Zubi shared his insights with Arab News about how venture capital is energizing the entrepreneurial scene in the Kingdom. 

Al-Zubi described this financial influx as a vital nutrient, fostering a fertile ground for innovation and growth within the Kingdom.  

Founder of Nama Ventures, Mohammed Al-Zubi. Supplied

Ripple effects   

“Startups get crucial funding, expert guidance, and exit pathways, attracting and retaining ambitious talent. This creates a ripple effect — successful ventures generate high-quality jobs, attracting more skilled professionals and expertise,” Al-Zubi told Arab News.  

However, he explained that challenges like limited seed funding and skill mismatch require more attention.   

“By fostering a diverse ecosystem and addressing these gaps, Saudi Arabia can harness the power of VC to build a thriving and sustainable entrepreneurial powerhouse,” Al-Zubi added.  

Echoing Al-Zubi’s remarks, Tariq bin Hendi, senior partner at Global Ventures, told Arab News that the Kingdom’s VC growth reflects its booming economy.  

“Saudi Arabia is a large market with compelling macroeconomics and significant funding, which in turn is re-shaping the regional startup landscape,” Hendi said.  

“Increased investment has helped start-ups to digitize, scale and accelerate their business operations — with many success stories: Tarabut, Zension, RedSea, Zid and Hakbah being among the most well-known,” Hendi added.  

An innovative economy 

Hendi emphasizes the crucial role of venture capital in the economic diversification of Saudi Arabia.   

He notes that sectors like agritech, fintech, and cleantech are attracting significant investments, aligning with Saudi Arabia’s Vision 2030 goals.   

“The increase in investment saw Saudi Arabia secure MENA’s (Middle East and North Africa) highest VC funding in 2023, which is also aligned with the country’s Vision 2030 objectives,” he stated   

“Venture capital’s investment in nascent technologies and innovative ventures allows for early-stage experimentation and for new start-ups to respond to analogue-based problems previously difficult to navigate through digitalization,” Hendi added.  

According to him, this synergy between venture capital and startups not only drives technological progress but also offers insights into the regulatory landscape, promoting economic diversity and innovation within the region. 

He also highlights the broader impact of venture capital, noting how it enables local businesses to scale and address global challenges, creating job opportunities and demonstrating the Kingdom’s potential in leading sustainable startup growth.   

Moreover, Hendi points out that venture capital stimulates international collaboration, attracting global investors and reducing investment risks, further bolstering Saudi Arabia’s position as a dynamic hub for economic activity and innovation.  

Tariq bin Hendi, senior partner at Global Ventures. Supplied

Furthermore, in his article “Venture Capital Fundamentals: Why VC Is A Driving Force Of Innovation,” Mark Flickinger, general partner and chief operating officer at US-based BIP Ventures, describes VC as a critical factor for economic innovation.   

“VC is a rewarding form of private market investment that gives innovators a real chance to transform their ideas into businesses. It connects founders and investors, driving progress and successful outcomes for both,” Flickinger said.  

“And for everyone who is part of this virtuous cycle of funding, building, and scaling market-changing businesses, VC is a way to support the impact of the innovation economy – which is the economy today,” he added.  

The challenge  

Hendi underscores the significant transformation underway in Saudi Arabia, driven by the nation’s economic diversification and digitalization, which is fueling a burgeoning demand for talent and innovation.   

With a young, tech-savvy population, the Kingdom is ripe for entrepreneurial ventures, evidenced by success stories like Tabby, he explained.  

The growing ecosystem, supported by incubators and successful exits, showcases the country’s potential as a hotbed for technology-driven businesses catering to consumers, enterprises, and government sectors.  

The challenge now, according to him, is to further enhance this vibrant environment, making Saudi Arabia even more appealing for entrepreneurs.   

He advocates for continued deregulation and the creation of conditions that encourage innovation, enabling entrepreneurs to develop products and services that resonate with consumers and drive economic growth.   

The goal is to not only maintain the momentum but to elevate Saudi Arabia’s status as a premier destination for starting and scaling innovative ventures.  

How to utilize funding  

As VC growth continues to expand, startups are pressured to find efficient ways to use their funding to boost the overall ecosystem.  

Al-Zubi shares his advice stating: “Imagine your funding as rocket fuel – you have to blast off without burning it all at once, right?”  

“To fly long and far, focus on essentials. Build a stellar team, fuel growth with customer love, and lay a strong financial groundwork,” Al-Zubi added.  

“Track your rocket’s path with data, experiment with new maneuvers, and stay tuned to the space weather. Be open with your investors, listen to wise advisors, and don’t be afraid to adjust your trajectory if the wind changes. Remember, long-term success is a marathon, not a sprint. Spend smart, learn fast, and keep your eyes on the stars,” he added.    

Furthermore, Hendi advocates for meticulous planning in resource allocation, emphasizing the importance of understanding the market, timing for product launches, and strategic deployment of capital.   

According to Hendi, startups must have a clear grasp of their financial roadmap, with a detailed understanding of expected expenditures over set timelines, to ensure sustained growth and success in the evolving economic environment.