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The Red Sea Development Company (TRSDC) is expected to launch the sale of off-plan villas in the Red Sea mega project as of next year, said Ahmad Darwish, Chief of Staff at TRSDC in an interview.
“Phase 1 will not offer lots of villas for sale, as the company is still in the process of building façade designs and providing the project services,” Darwish said, expecting stronger demand by 2030.
RIYADH: The global liquefied natural gas supply is set to surge by 80 percent by 2030, driven by new projects in Qatar and North America, a new analysis showed.
In its latest report, Goldman Sachs said that this robust rise in supply would bring an end to the current energy crisis following Russia’s invasion of Ukraine.
The US-based financial services firm also highlighted that investments in LNG are projected to increase by over 50 percent by 2029.
Michele Della Vigna, Goldman Sachs’ head of natural resources research in Europe, the Middle East and Africa, said: “LNG in the US, without any doubt, is dominating future supply and we believe that the capacity growth in LNG is going to bring an end to the energy crises that began a couple of years ago, following European sanctions on Russian gas after the invasion of Ukraine, and work to lower natural gas prices in Europe and Asia.”
He added: “We’re projecting an 80 percent increase in global LNG supply by 2030, which will be driven by new projects in North America and Qatar.”
In January, QatarEnergy signed an agreement with US-based Execelerate Energy to supply up to 1 million tonnes per annum of LNG to Bangladesh for 15 years.
Similarly, in February, Qatar’s state-owned firm signed another agreement with Petronet to supply 7.5 mtpa of LNG to India for a period of 20 years.
In the same month, QatarEnergy chief Saad Al-Kaabi announced a new expansion of its LNG production in the North Field, which will add a further 16 mtpa to existing capacity, bringing total production to 142 mtpa.
The Goldman Sachs analysis further pointed out that the oil and gas industry is undergoing a major transformation as it braces for the eventual long-term decline in crude demand and rising global need for natural gas.
According to the report, oil companies are still likely to reap attractive returns for shareholders, as well as good per-share growth if crude prices stay between the range of $80 to $90 per barrel.
Goldman Sachs highlighted that capital expenditure in the oil and gas industry grew at about 11 percent a year from 2020 to 2023, but it is likely to level off to around 4 percent a year from 2023 to 2026.
The analysis suggested the Organization of the Petroleum Exporting Countries is likely to maintain its current production discipline for the next few years.
“In the next two to three years, there is very little opportunity for OPEC to increase production capacity without rocking the market. We think non-OPEC production will peak this year, and then OPEC can potentially begin increasing its market share as decline rates rise and the project pipeline normalizes,” added Goldman Sachs.
RIYADH: China is at the forefront of providing affordable electric vehicles, supported by government backing and a wide range of low-cost options, according to a new study.
Despite a global slowdown in the transition to EVs, a report by S&P Global Ratings and S&P Global Mobility highlighted the effectiveness of the Asian country’s efforts, pointing to several key factors.
China’s competitive edge in this market is largely attributed to the near price parity between battery-EVs and internal combustion engine vehicles.
In the first quarter of 2024, China saw a BEV penetration rate of 25 percent, showcasing rapid adoption driven by low manufacturing costs and strong government incentives.
In contrast, Western markets face hurdles due to higher costs and diminished subsidies. In Europe and the US, BEVs are still significantly more expensive than their ICE counterparts, with Europe experiencing a 24 percent manufacturer’s suggested retail price premium and the US facing a 37 percent difference.
Additionally, concerns over range, charging infrastructure, and technological obsolescence further dampen consumer enthusiasm, the report added.
While Western automakers are developing more affordable models, such as the VW ID2 and Renault Twingo, these vehicles are not expected to hit the market until 2025-2026 and will only represent a small portion of available options, according to S&P.
The high cost of battery packs, which make up around 40 percent of an EV’s price, remains a significant barrier to affordability.
Despite these challenges, regulatory changes and environmental policies are expected to drive long-term growth in the BEV market.
The EU and China have set ambitious targets for emission reductions and EV adoption, with Beijing aiming for 50 percent “new-energy” vehicle sales in key regions by 2030.
As the global market adapts, the automotive supply chain is undergoing a transformation, with battery technology and production becoming central to the industry.
While China currently dominates this sector, the report stated that efforts in Europe and the US to localize production and develop alternative battery technologies are underway.
The Middle East is also seeing a focus on growing the EV sector, with Saudi Arabia looking to lead the region in this regard.
In 2022, Crown Prince Mohammed bin Salman launched Ceer, the Kingdom’s first automotive brand, to produce and sell EVs, aiming to attract investments, create jobs, and boost gross domestic product in line with Vision 2030.
Saudi Arabia's Public Investment Fund is also the major shareholder in EV manufacturer Lucid, which opened its first plant outside the US in the Kingdom in September 2023, with an initial capacity to produce 5,000 vehicles a year.
This came as the Kingdom’s government pledged to buy up to 100,000 EVs from the company over 10 years.
Saudi Arabia has set a goal to transition 30 percent of all vehicles in Riyadh to electric by 2030. This target is part of a larger strategy to reduce emissions in the capital city by 50 percent, aligning with the Kingdom’s objective of achieving carbon neutrality by 2060.
RIYADH: Energy giant Aramco has begun the sale of more than $10 billion worth of shares in what is the second public offering from the Saudi-based firm.
The 1.55 billion holdings on offer represent 0.64 percent of the company’s issued shares, and in a Tadawul statement the oil firm revealed that the price range has been set between SR26.70 and SR29 ($7 to $7.70) per share.
The book-building process for institutional investors in the secondary offering will run from June 2 to 6, while the period for retail investors will run from June 3 to 5.
This marks the firm’s second listing after its initial public offering in December 2019, which raised $25.6 billion, the largest flotation in history.
“The offering will be made to institutional investors in Saudi Arabia, institutional investors located outside Saudi Arabia who are qualified in accordance with the Rules for Foreign Investment in Securities to invest in listed securities and eligible retail investors in the Kingdom and other GCC (Gulf Cooperation Council) countries,” stated Aramco in a press release.
It added: “Outside the Kingdom, the Offering will be made in compliance with Regulation S under the US Securities Act of 1933.”
Regulation S is a series of rules that clarify the position of the US Securities and Exchange Commission that securities offered and sold outside the US don’t need to be registered with the SEC.
The sale was initially announced on May 30, with a statement adding that the Saudi government currently holds 82.19 percent of the company’s issued shares.
Upon closure of the secondary offering, the government will hold approximately 81.55 percent of the firm’s issued shares if the over-allotment option is not exercised.
Investment banks added to the deal since it was announced on Thursday are Credit Suisse Saudi Arabia - part of UBS Group - as a domestic bookrunner alongside BNP Paribas, Bank of China International and China International Capital Corporation as foreign bookrunners, according to a stock exchange filing.
Already on the deal were Saudi National Bank's investment banking arm, which is the lead manager as well as global coordinator alongside Citi, Goldman Sachs, and HSBC, as well as JPMorgan, Bank of America and Morgan Stanley.
Al Rajhi Capital, Riyad Capital and Saudi Fransi are also domestic joint bookrunners.
In April, a survey conducted by UK-based Brand Finance named Aramco the most valuable brand in the Middle East, with a value of $41.5 billion.
In May, the Saudi oil firm revealed its net profit for the first quarter of this year reached $27.27 billion, a rise of 2.04 percent compared to the last three months of 2023.
According to the statement, Aramco’s total revenue for the three months to the end of March stood at $107.21 billion, with total operating income for the period reaching $58.88 billion.
ISLAMABAD: Pakistani economists on Saturday expressed skepticism over the government’s claim it would be able to accelerate economic growth to 3.6 percent in the next fiscal year from 2.4 percent in the outgoing financial year, warning that employment and poverty rates could increase further in the coming months.
Prime Minister Shehbaz Sharif’s administration is expected to present the annual budget on June 10, at a time when the country is facing an economic crisis with double-digit inflation and struggling to secure funding from the International Monetary Fund (IMF).
The government on Friday approved a 3.6 percent growth target for the 2024-25 budget, boosting the development allocation to Rs1.2 trillion ($4.3 billion) from Rs950 billion ($3.4 billion) in the outgoing fiscal year, which has now been slashed to Rs717 billion ($2.6 billion) due to fiscal constraints.
“Looking at the economic indicators including agricultural and large-scale manufacturing growth, it seems the government may hardly be able to achieve around three percent growth rate,” Sajid Amin, economist and deputy executive director at the Sustainable
Development Policy Institute (SDPI) in Islamabad, told Arab News.
“The governments usually budget a high growth target and then revise it down,” he said, referring to the outgoing fiscal year’s growth rate as the government had targeted 3.5 percent but achieved only 2.4 percent.
Amin said that around nine million youth were entering the labor market annually and Pakistan would require at least a five percent growth rate to create job opportunities for them.
“Even if the government achieves the growth target, the unemployment and poverty rate would unfortunately increase,” he said.
According to a recent Planning Commission report, the government expects inflation to moderate to 12 percent in the next fiscal year while admitting that growth prospects “hinge upon political stability, exchange rate, macroeconomic stabilization under IMF’s program and expected fall in global oil and commodity prices.”
Ali Khizar, an economist, said the country was faced with gross financing gaps and development would remain in check with real interest rates to stay positive.
“Pakistan’s current account is expected to stay close to zero until the foreign exchange reserves build,” he told Arab News, adding that commercial financing revenues would remain low and with all this Pakistan would not be able to achieve the targeted growth rate.
“Even 3.6 percent growth rate is not a good number to create job opportunities and bring people out of poverty,” he continued, adding that Pakistan would have to ensure tight fiscal and monetary policies with high interest rates to secure the IMF loan program.
These, he pointed out, would slow down the economy.
RIYADH: Project managers and experts are scheduled to gather in Riyadh for the third Global Project Management Forum to share their experiences and discuss best global practices in the sector.
The two-day annual event will be held on June 2-3 to highlight the latest developments in the field of project management across various sectors and serve as a platform for industry experts to share creative ideas to achieve their professional goals.
To be held under the theme “We Achieve the Dream: Leadership, Empowerment, Sustainability,” the event aspires to showcase Saudi Arabia’s distinguished position and leading role in colossal and futuristic projects worldwide.
The forum is designed to bring together the most influential global community of project managers and diverse stakeholders for immersive learning, networking, and collaboration.
Last year, the event succeeded in attracting 2,609 participants, and a much larger number is expected this year.
Badr Burshaid, president of the Project Management Institute-KSA chapter, emphasized the distinguished position that the forum has been able to achieve over the past two consecutive years.
“Since its inception, the forum annually attracts project leaders from around the world, including thought and business leaders, academics, professional and technical managers, as well as major organizations and institutions, to exchange knowledge and experiences,” he stated.
Burshaid added: “This contributes to the implementation of government initiatives aimed at making Riyadh one of the most sustainable and economically significant cities in the world.”
Additionally, GPMF aspires to advance the Kingdom’s Vision 2030 by enhancing the skills and capabilities of project management professionals in the Kingdom.
Support from the govern-ment, private sector, and professio-nal community has propelled Saudi Arabia into a leadership position in several global project manage-ment certifica-tions.
Badr Burshaid, president of the Project Management Institute-KSA chapter
Burshaid told Arab News that the event emphasizes how effective project management ensures timely, budget-conscious, and high-quality completion of initiatives.
“This strategic approach not only supports the Kingdom’s economic diversification (plans) by optimizing project efficiency and effectiveness but also contributes to a robust framework where organizations utilizing these practices consistently achieve a 92 percent success rate in meeting project goals,” he said.
Burshaid added: “Thus, GPMF is instrumental in fostering a disciplined and consistent approach to project management, vital for the realization of Vision 2030’s objectives.”
The official also outlined the expected growth of the project management profession in Saudi Arabia over the next five years.
He predicted increased demand for skilled project managers across various sectors and emphasized the importance of professional development and adherence to international standards.
Moreover, the engagement of participants from across the world at the forum is expected to enrich the local project management environment and contribute to establishing a globally competitive landscape.
“This global interaction will help materialize the vision of establishing a dynamic and internationally competitive project management landscape in Saudi Arabia,” Burshaid told Arab News.
Additionally, “the global demand for project management skills is escalating, with an estimated need for 25 million new professionals by 2030, underscoring the critical role of this profession in contemporary economies,” he added.
Fostering Saudi Arabia’s professional landscape
Saudi professionals will also benefit from the training and certification opportunities offered by the GPMF.
These programs ensure access to advanced project management methodologies, tools, and best practices.
Thus, GPMF’s impact on the Kingdom’s workforce is significant, as it cultivates a highly skilled talent pool capable of managing complex projects, which in turn drives economic growth.
“Support from the government, private sector, and professional community has propelled Saudi Arabia into a leadership position in several global project management certifications,” Burshaid explained.
He continued: “Moreover, current data highlights the strong emphasis on professional development in this field: Sixty-one percent of organizations invest in project management training, and 47 percent have established a clear career pathway for project professionals.”
Burshaid further explained that over 20 percent of project managers intend to pursue certification within the next year.
The forum caters to a diverse audience from the government and private sectors, semi-government sectors, engineering, contracting, and procurement companies, startups, construction and infrastructure firms.
It also targets project managers, strategic managers, developers, project management office managers, consultants, and technology providers.
The forum also aims to empower female professionals, and ambitious youth with the necessary skills and knowledge to excel in project management.
This is achieved by highlighting key topics in the economy, foresight and governance, work methods and value chains, large-scale projects and sustainable social impact, digital transformation, uses of artificial intelligence, soft skills, and other related topics in project management.
Strategic initiatives
Furthermore, Burshaid highlighted several initiatives aimed at enhancing the project management field and supporting local talent in Saudi Arabia through a series of strategic initiatives.
These initiatives include mentorship programs, scholarships for project management training, and collaborations with universities to integrate relevant courses into their academic programs.
The goal is to equip emerging talent with the necessary skills, knowledge, and opportunities for successful careers in project management.
The forum is designed to bring together the most influential global community of project managers and diverse stakeholders for immersive learning, networking, and collaboration.
“Further strengthening our commitment, we have formed partnerships with five Formula 1 school teams throughout Saudi Arabia. These collaborations aim to provide the teams with the necessary knowledge and financial support to excel in their projects,” Burshaid stated.
He added: “Additionally, we have conducted more than 230 training sessions aimed at boosting the capabilities of local talents, complemented by our active sponsorship of professionals across the Kingdom.”
Burshaid went on to say that as they approach 2030, there is an expectation that the demand for skilled project managers will significantly increase.
To meet this growing demand globally, it is estimated that approximately 2.3 million new project managers will need to be developed each year. This projection aims to address a total global demand of 25 million project managers by the end of the decade.
“Our initiatives are key to meeting these challenges and ensuring the sustained growth and success of the project management profession in the region and beyond,” he said.
Contribution to SMEs
Burshaid also outlined efforts to support the growth of small and medium enterprises in Saudi Arabia through targeted training programs tailored to address specific challenges.
These initiatives aim to equip SME owners and managers with advanced project management skills, leading to improved outcomes, increased efficiency, and innovation.
“The forum provides SMEs with access to critical insights and opportunities for expansion, supporting the development of a vibrant SME sector. This sector is vital for driving innovation, job creation, and gross domestic product growth in Saudi Arabia,” Burshaid said.
He added: “SMEs’ adaptability and capacity for innovation not only boost employment but also attract foreign direct investment, contributing to a robust business ecosystem.”
Burshaid underlined that supportive measures such as the establishment of SME Bank to enhance financial access, technology adoption, and workforce diversity, solidify Saudi Arabia’s reputation as an innovative investment hub.
The country’s high global ranking in venture capital availability underscores the positive impact of Vision 2030 on the SME environment.
The GPMF is more than simply a learning experience; it also provides an opportunity to network with over 1,000 project and program management professionals from various organizations and backgrounds.
Participants can network with one another, discuss ideas, learn from each other’s experiences, and form significant professional ties that may persist beyond the event.
The forum does provide a platform for the development of new collaboration and career opportunities.
A day before the GPMF begins, guests can attend masterclasses given by some of the industry’s specialists. They will acquire insights into the latest tools, technologies, and techniques and learn how to apply them to their projects for better results.
