CAIRO: Egypt Air will resume direct flights between Cairo and Moscow as of Sept. 17, at the rate of three flights per week, state news agency MENA reported on Tuesday, citing a statement by the company.
Travelers to Moscow must obtain a medical certificate with a negative PCR test result for coronavirus (COVID-19) from an accredited laboratory in Egypt, issued 72 hours at most before the date of arrival, MENA added.
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Egypt air to resume direct flights between Cairo and Moscow Sept 17 -MENA
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Egypt air to resume direct flights between Cairo and Moscow Sept 17 -MENA
UAE’s Mubadala Capital plans $13.5bn investment in Brazil’s biofuel sector
RIYADH: Brazil’s biofuel market is set for substantial growth as UAE’s Mubadala Capital has committed to invest $13.5 billion over the next decade.
Oscar Fahlgren, head of Brazil strategy at the sovereign wealth fund, disclosed the budget for the initiative during an interview with the Financial Times. He divulged the details of the fund’s plans to produce renewable diesel and sustainable aviation kerosene primarily utilizing non-food plant matter.
In his interview with the newspaper, Fahlgren said Mubadala’s Brazilian subsidiary, Acelen, will initiate the development of a large-scale biofuel project by 2026.
The fund’s executive stated that the funds will be sourced through a blend of equity and debt over a span of five to 10 years.
The endeavor will encompass five modules, each valued at $2.7 billion, housing a new biorefinery capable of processing 20,000 barrels of fuel per day. Additionally, it will include the necessary infrastructure and cultivated acreage to sustain the input crop.
“It’s all about feedstock (which) in reality is agriculture. And Brazil is probably the best-placed country on the planet when it comes to agricultural proficiency because of the climate and the fertile soil,” said Fahlgren, adding, “Brazil is to agriculture what Abu Dhabi is to oil.”
The project will also include the conversion of an existing oil refinery in the northeastern Brazilian state of Bahia acquired from government-owned Petrobras in 2021.
“It’s a very important capital project,” Fahlgren said. “I see tremendous opportunity to invest in the green energy transition space in Brazil,” he added.
Mubadala’s venture into bioenergy will leverage its existing $6 billion investments in the country, constituting approximately a quarter of the group’s global portfolio.
“We’ve been very active investing in Brazil, for the past 10-plus years, in an environment where most foreign investors have been shying away,” Fahlgren said.
Mubadala also plans to open a stock exchange in Brazil next year through its Americas Trading Group.
“Brazil is a very large country. It has only one stock exchange. And I think that’s suboptimal infrastructure for the players that operate in this segment,” said Fahlgren.
“It will probably be a staged launch — perhaps start with equities, then expand. No asset classes are off the table.”
The asset management arm of the Emirati sovereign wealth fund is increasing its bets on Latin America’s largest economy, where its holdings span metro lines and medical universities to a majority stake in the local owner of the Burger King brand.
“We’re very bullish on the investment climate in Brazil right now and the opportunities we see,” said Fahlgren. “We do have a number of assets that are relatively mature today, and could be potential exit candidates in the not-too-distant future,” he added.
Eastern Province showcases environmental opportunities during investment forum
RIYADH: Investors eyeing environmental opportunities in Saudi Arabia’s Eastern Province stand to benefit from a forum held on May 5, amidst efforts to preserve natural resources.
Organized by the Eastern Chamber under the theme “Restoration and Sustainability,” the Environmental Investment Forum 2024 aims to underscore the importance of ecological preservation.
The event, patronized by Prince Saud bin Naif, Gov. of the region, also delves into the effects of environmental regulations and legislation on the business sector, the Saudi Press Agency reported.
Badr bin Suleiman Al-Ruzaiza, chairman of the regional chamber, emphasized the importance of environmental protection within the framework of the Kingdom’s Vision 2030.
He stressed that the country’s ambitious plan views environmental stewardship not only as a religious and ethical imperative but also as a humanitarian duty.
Al-Ruzaiza elaborated that Vision 2030 aims to reduce pollution by improving waste management efficiency across diverse sectors. He underscored the Kingdom’s proactive approach in addressing environmental issues domestically and globally.
The chairman emphasized the paramount significance of the environmental sector in conserving renewable natural resources.
He stressed its pivotal role in laying the essential groundwork for achieving holistic and sustainable growth, ensuring food security, and improving overall quality of life.
He stated that the forum seeks to shed light on the importance of the environment and ways to preserve it, addressing the impact of environmental regulations and legislation on business sectors.
Additionally, it aims to review investment opportunities for businesses in the environmental sector, as well as available financing channels for projects in this vital sector. This represents environmental investment as a key driver and effective element in achieving sustainable development.
Al-Ruzaiza clarified that the forum supports environmental protection practices, presents experiences and solutions, and aims to expand knowledge about investment opportunities related to sustainability. It also focuses on methods for addressing them and implementing associated mechanisms.
He also highlighted the array of sustainability initiatives and programs initiated by the Kingdom to foster green investments across various sectors. Furthermore, he emphasized the nation’s objective of increasing its reliance on clean energy sources, aiming to achieve 50 percent of total energy consumption by 2030.
He also noted the country’s determination to double its spending on investment and financing projects that operate in areas supporting sustainability.
The forum comes against the backdrop of the Eastern Province’s municipality recently unveiling a range of diverse investment opportunities, both permanent and temporary, across cities and governorates in the region.
The municipality had cataloged over 20,000 investment assets covering an area exceeding 116 million sq. m., serving as a database for significant growth in the region, as reported by SPA in March.
These encompass the development of waterfronts, plots, and infrastructure, as well as transportation, markets, and advertising billboards.
Additionally, opportunities for recreational and tourist centers are available. These also cover sports activities, factories, and exhibitions, along with warehouses, workers’ housing, and various tourist and commercial investment sites.
Kuwait’s non-oil sector steadies in April, UAE maintains growth in April
RIYADH: Non-oil activities in Kuwait demonstrated steady growth in April, buoyed by effective advertising and competitive pricing, supporting the expansion in new orders, an economy tracker revealed.
According to the latest Kuwait Purchasing Managers’ Index by S&P Global, the country’s PMI dipped to 51.5 in April from 53.2 in March.
A PMI reading above 50 indicates growth in the non-oil private sector, while readings below 50 signal contraction.
The report noted that job creation scaled back for the first time in eight months as companies aimed to minimize costs, while the rate of purchase price inflation was one of the sharpest on record in April.
According to the survey, this reduction in workforce numbers, coupled with a shortage of available raw materials, led to a buildup of backlogs of work in April.
“The slowdown in growth seen in April is not cause for immediate alarm as Kuwaiti firms were still able to generate solid expansions in new business and output at the start of the second quarter,” said Andrew Harker, economics director at S&P Global Market Intelligence.
The report mentioned that output prices increased only modestly in April, as companies endeavored to limit price hikes to customers by offering discounts.
Furthermore, input costs also surged sharply in April, driven by a marked rise in purchase prices.
“Growth continued to be predicated, at least in part, on competitive pricing. This put pressure on margins given rapidly increasing input costs, however. In a bid to limit expenses, firms cut back on employment numbers, thereby restricting the extent to which they were able to fulfill orders,” said Harker.
He added: “There are clearly risks that this will prove unsustainable and so companies will be hoping that either cost inflation moderates or that demand strengthens sufficiently to reduce the need for discounting in the months ahead.”
UAE maintains strong growth
Meanwhile, in another report released last week, S&P Global revealed that the UAE’s non-oil private sector maintained robust output growth in April. The Emirates’ PMI reached 55.3, down from 56.9 in March but remained firmly above the 50 mark, indicating expansion.
According to the survey, this slowdown was attributed to floods and rains that hit the country in April.
“April data highlighted strong overall growth across the UAE non-oil private sector as buoyant domestic economic conditions helped to support long-term business expansion plans. However, the latest survey signaled a sharp slowdown in new business gains in the wake of heavy rainfall and flooding,” said Tim Moore, economics director at S&P Global Market Intelligence.
He added: “Companies operating in Dubai recorded a particularly acute loss of sales momentum as adverse weather disruptions hit business and consumer spending.”
S&P Global revealed that backlogs of work increased considerably in April, attributed to temporary business disruptions and heightened pressure on operating capacity.
The report added that non-oil businesses in the UAE remained optimistic about future output over the next year, although the level of optimism eased, dropping to its lowest reading since January.
“Non-energy businesses are nonetheless still highly upbeat about their year ahead growth prospects. Many commented on strong sales pipelines and swift recovery from the impact of heavy rainfall,” noted Moore.
According to the survey, higher levels of employment were recorded in April, driven by new project starts and resilient demand conditions.
Saudi Arabia’s non-oil sector maintains growth with steady PMI of 57 in April
RIYADH: Saudi Arabia’s non-oil private sector continued its growth momentum in April, driven by strong demand conditions across domestic markets, as indicated by an economic tracker.
The Kingdom’s Purchasing Managers’ Index in April remained unchanged at 57 compared to March, signifying a flourishing non-oil economy in the country, according to the Riyad Bank Saudi Arabia PMI report by S&P Global.
In February, PMI hit a five-month high of 57.2, while it was 55.4 in January.
According to S&P Global, any PMI reading above 50 indicates growth in the non-oil sector, while readings below 50 signal contraction.
David Owen, senior economist at S&P Global Market Intelligence, said: “The latest Saudi PMI has sustained a robust figure of 57.0 for the second consecutive month, signifying a flourishing non-oil economy. This uptrend hints at an anticipated spike in the non-oil GDP, likely exceeding the 4.5 percent mark for this year.”
He added: “Noteworthy is the surge in new orders and inventory expansion, indicative of a proactive response to mounting demand within the market.”
According to the report, expectations of strong sales performance drove companies to increase their purchasing activities in April, while cost considerations caused a decline in job creation during the month.
S&P Global highlighted that the overall rate of input price inflation eased to a nine-month low in April.
“Despite a decline in employment figures, there’s a notable increase in the costs associated with employment to incentivize the workforce. This strategy aims to bolster productivity and ensure the retention of skilled workers within the expanding economy,” added Owen.
Competitive pricing, promotional activity, investment, and expanding client bases, particularly in the domestic market, were other crucial factors that propelled the non-oil private sector in the Kingdom in April, the report noted.
Regarding the future outlook, most of the companies in Saudi Arabia that took part in the survey expressed a positive view due to continued improvement in sales performances in April.
“The prevailing strength in demand, along with strategic marketing initiatives and corporate expansions in both wholesale and retail sectors, further fortifies the positive trajectory of the Saudi economy,” Owen said.
He concluded: “The sustained expansion, coupled with evolving market dynamics, underscores a favorable environment for continued economic prosperity and stability in Saudi Arabia’s non-oil economy.”
Saudi Arabia’s on the frontline of battle against climate change
- Middle Eastern countries face unique challenges that compound the urgency of tackling this environmental crisis
RIYADH: As temperatures continue to rise worldwide, the Arab region is on the frontline of the battle against climate change.
In the global race to achieve net-zero, the Middle Eastern countries face unique challenges that compound the urgency of tackling this environmental crisis to safeguard their future.
The Gulf region is one of the areas most heavily impacted by climate change, primarily due to the already elevated temperatures that have exceeded the global average.
In recent years, the Arab world has heightened its focus on the ramifications of global warming, particularly its economic impacts, to avert the detrimental consequences.
Events such as MENA Climate Week in Riyadh in 2023, the UAE’s COP28 in 2023, and Egypt’s COP27 in 2022 underscore the region’s commitment to addressing this pressing issue.
Speaking to Arab News, Sal Jafar, CEO of ESG MENA, underscored these efforts, stating: “I have observed firsthand the transformative strides the GCC countries are making in the realm of energy transition and climate change efforts.”
He added: “This region, historically reliant on hydrocarbon economies, is now at the forefront of a pivotal shift toward sustainability and environmental stewardship, underpinned by an ESG framework.”
The intricate relationship between atmospheric changes and financial growth in these nations underscores the necessity of adopting sustainable development practices.
A recent report by the Arab Monetary Fund states that by the year 2050, the region may experience a significant reduction in water availability and agricultural productivity.
This decline, which is connected to climate-related water scarcity, could result in economic losses equivalent to 14 percent of the area’s gross domestic product.
Saudi Arabia, a pivotal player in the Middle East and a significant oil producer, embodies the region’s complexities and potential for transformation.
The Kingdom has been keen to amplify its efforts in energy transition for at least a decade, Yousef Al-Shammari, the CEO of CMarkits, a UK-based energy research consultancy firm, told Arab News.
These measures began with the launch of the King Abdullah City for Atomic and Renewable Energy in 2013, he noted, saying: “At that time, the aim was to minimize crude oil consumption by utilizing alternative sources of energy. Especially because the local consumption of crude is projected to keep rising because of national consumption of electricity and, of course, road transport demand.”
This region, historically reliant on hydrocarbon economies, is now at the forefront of a pivotal shift toward sustainability and environmental stewardship, underpinned by an ESG framework.
Sal Jafar, CEO of ESG MENA
Crude oil demand is projected to rise to as high as 8 million barrels per day, while the Kingdom produces 10 million barrels. This will inevitably lead to an “economic security risk” and result in the nation’s first motive of ensuring energy efficiency, Al-Shammari said.
However, with rising concerns about escalating temperatures and environmental sustainability, the nation launched its Vision 2030 in 2016 to position itself as a global leader in clean energy production and divert its economy from oil dependency.
The road to net-zero
The Kingdom has embarked on various initiatives to reduce its carbon footprint and diversify its economy beyond oil.
Mitigative efforts include ambitious targets of 44 million tonnes of carbon dioxide captured annually by 2035 and 2 million tonnes of CO2 seized and utilized daily to produce glycol, urea and green methanol, as well as clean fuels, according to the 14th IEA-IEF-OPEC Symposium on Energy Outlooks.
This is being made possible through the circular carbon initiative, which was introduced during the Kingdom’s presidency of the G20, the CEO highlighted, saying: “The circular carbon initiative that includes removal reduce, reuse, and recycle,” he explained, adding: “Saudi Aramco is pursuing a very ambitious program on that line. I think there is one major project, which is starting in 2027, which will be the world’s largest CO2 capture project.”
The facility, which Aramco is said to play a significant role in, seeks to capture 9 million tonnes per annum of CO2 by 2027, with the aim of increasing its capacity to 44 million tonnes per annum by 2035, Al-Shammari outlined.
In October of 2022, the Kingdom’s sovereign wealth fund launched its regional Voluntary Carbon Market company during the sixth edition of the Future Investment Initiative in Riyadh.
This move allowed for tradable CO2 shares to be launched on an exchange, with major players in the Saudi energy field, like Aramco and SABIC, taking part.
The idea of the VCM is to allow companies to pay to compensate for their CO2 emissions. Additionally, the market’s voluntary nature presents a greater chance for success than compulsory sectors implemented in other regions, Al-Shammari outlined.
He said: “It’s voluntary, which means it can have a bigger impact than compulsory carbon markets, which we have seen in Europe, which did not really lead to any carbon reductions. The idea is, by being voluntary, it essentially enables companies to make economic sense of it. So when you have an economic return by having these investments in carbon markets, that would pay off the cost of capturing carbon. So somehow, it encourages producers to minimize their carbon emissions.” He added: “There is so much research and literature that has been done on that and the optimism about the
voluntary market is so huge and encouraging producers to minimize emissions compared to the compulsory markets.”
Greening the world
Equipped with a strategic location at the crossroad of three continents, the Kingdom is well positioned to lead in renewable energy exports globally.
Two ambitious projects outlined in the Symposium on Energy Outlooks include exporting 150,000 tonnes of clean ammonia globally and building the world’s largest green hydrogen project in NEOM.
Therefore, the nation’s location essentially allows it to export its potentially massive renewables supply east or west, Al-Shammari highlighted.
As European countries look to produce and import green hydrogen, Saudi Arabia will remain the continent’s supplier “for the foreseeable future,” he outlined.
He said: “As a part of the decarbonization plans, if you want to produce green hydrogen in Germany, it’s going to cost you $5 a kilogram and you’re going to produce it in Saudi Arabia, it’s going to cost you between $1 and $2 a kg.”
He added: “In the meantime, for the foreseeable future, Germany, which is Europe’s largest economy, will be dependent on and will need to import green hydrogen from cheap places like Saudi Arabia.”
Similarly, Saudi energy giant ACWA Power currently holds the world’s most extensive green hydrogen storage unit, with 1.2 million tonnes of ammonia produced per annum.
The company can “easily” import and export this large sum from its site in the northwest region of the Kingdom to Europe.
These efforts are allowing the country to shift its global image from a crude oil exporter to a major player in all energy fields.
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