NRG matters: New York to propel 22 renewable energy projects; EU set to boost LNG capacity

New York has unveiled a total of 22 renewable energy projects in line with the state’s target to achieve net-zero by 2040, Bloomberg reported, citing Gov. Kathy Hochul.
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Updated 05 June 2022
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NRG matters: New York to propel 22 renewable energy projects; EU set to boost LNG capacity

RIYADH: New York is on track to advance with 22 green projects, in line with the state’s climate ambitions. In addition, EU countries will use money from the EU recovery fund to expand liquified natural gas capacity. Meanwhile, Moscow is seeing a jump in profits from energy exports in 2022, despite sanctions from the West.

Looking at the bigger picture: 

·      New York has unveiled a total of 22 renewable energy projects in line with the state’s target to achieve net-zero by 2040, Bloomberg reported, citing Gov. Kathy Hochul. The projects are expected to generate enough power to cater to 620,00 homes in the city for at least 20 years. In addition to this, the projects are also likely to create over 3,000 jobs and spur up to $2.7 billion in private investments. 

·      EU countries are set to utilize the money coming from the EU recovery fund to bolster liquified natural gas capacity, Reuters reported, citing EU Commissioner Paolo Gentiloni.  Originally created to facilitate pots-pandemic economic growth, the EU recovery fund will help EU countries gain dependency from Russian gas imports.

·      Qatar has exported less than 35 million tons of liquified natural gas in the period between January and May of 2022, down from 36 million tons in the corresponding period a year ago, Bloomberg reported, citing ship-tracking data compiled by Bloomberg. This is despite the major delivery requests from European countries keen on finding alternative sources to Russian fuels.

·      Moscow is anticipating an increase in profits from the export of energy resources in 2022 despite Western sanctions on Russian oil, Reuters reported, citing Russian Foreign Minister Sergei Lavrov.


Closing Bell: Saudi main index rises to close at 11,625

Updated 8 sec ago
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Closing Bell: Saudi main index rises to close at 11,625

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 121.61 points, or 1.06 percent, to close at 11,625.10. 

The total trading turnover of the benchmark index was SR5.6 billion ($1.49 billion) as 112 stocks advanced, while 110 retreated. 

On the other hand, the Kingdom’s parallel market Nomu slipped 492.33 points, or 1.85 percent, to close at 26,118.24. This comes as 25 stocks advanced, while 35 retreated.

Meanwhile, the MSCI Tadawul Index rose 19.25 points, or 1.34 percent, to close at 1,455.32.

The best-performing stock of the day was East Pipes Integrated Company for Industry. The company’s share price surged 8.96 percent to SR163.00.

Other top performers included Al Hassan Ghazi Ibrahim Shaker Co. as well as Mouwasat Medical Services Co.

The worst performer was Astra Industrial Group whose share price dropped by 3.92 percent to SR147.

On the announcements front, East Pipes Integrated Co. for Industry announced the sign off of several contracts with Saudi Arabian Oil Co., or Aramco, with value exceeding SR1.65 billion for the manufacturing and supply of steel pipes.

According to a Tadawul statement, the financial impact of the 19-month contract will be reflected from the final quarter of the financial year 2024-25 to final quarter of the financial year 2025-26.

Moreover, Group Five Pipe Saudi Co. announced contracts sign off with Saudi Aramco worth SR186 million to manufacture and supply spiral-welded steel pipes.

A bourse filing revealed that the financial impact of the two-month contract is expected to be reflected starting from the second quarter of the fiscal year 2025.

Additionally, Gulf Union Al-Ahlia Cooperative Insurance Co. announced that it signed an insurance contract with Saeed Raddad Group to provide cooperative health insurance services to its employees and their families for one year.

According to a Tadawul statement, the contract value exceeds 5 percent of the gross written premiums according to the audited financial statements for the year 2023.

The one-year contract is expected to have a positive impact on Gulf Union Al-Ahlia Cooperative Insurance Co.’s financial results for 2024 and 2025.

Meanwhile, Ataa Educational Co. announced its interim financial results for the period ending April 30.

A bourse filing revealed that the company’s net profit hit SR44 million in the nine months ending in April 2024, reflecting a 7.4 percent surge when compared to the corresponding period a year earlier. 

This jump is primarily owed to the acquisition of minority interest in Al-Yasmine, Al-Alsun, and Jeel Al-Majd companies, increased revenues in the education sector by 4 percent, and a decrease in operating costs by 2 percent.


IATA summit in Dubai focuses on airline industry challenges

Updated 8 min 11 sec ago
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IATA summit in Dubai focuses on airline industry challenges

RIYADH: Geopolitical and economic changes, safety, and emissions are in the spotlight at the 80th IATA Annual General Meeting and World Air Transport Summit that commenced in Dubai on June 2. 

According to the International Air Transport Association, leaders from the global airline industry are attending the World Air Transport Summit scheduled to continue until June 4 at the event. Discussions will encompass topics such as artificial intelligence, innovation, and a review of the annual report on the air transport industry. 

The gathering, hosted by Emirates and the first of its kind in Dubai, is expected to witness over 1,500 participants, including IATA’s member airlines, IATA AGM-level Strategic Partners, and international and regional associations. Additionally, it includes leading manufacturers, industry suppliers, and media representatives. 

IATA’s Director General Willie Walsh stated: “Dubai’s world-leading connectivity places it at the crossroads of the planet. And it will soon be the center of the airline industry’s leadership as it hosts the 80th IATA Annual General Meeting and World Air Transport Summit.”  

He added: “We look forward to hosting our industry colleagues in Dubai, Emirates’ home and hub. This is a city that has forged its place in global aviation and prospered, thanks to its visionary leaders and progressive policies that recognize air transport’s role as a key economic enabler.”  

In line with this, the IATA chief noted that last year, aviation contributed 27 percent to Dubai’s gross domestic product and supported $37 billion in gross value added.  

Tim Clark, president of Emirates, remarked that there are always exciting new developments in Dubai. 

“I hope visiting delegates will get to a chance to experience this buzzing city and the UAE’s renowned hospitality for themselves.” Clark said. 

The World Air Transport Summit is set to follow the annual meeting, offering a comprehensive program that addresses the critical issues facing aviation. 

“The commitment to achieve net-zero carbon emissions by 2050 will top the agenda of the 80th IATA AGM and World Air Transport Summit. We will explore solutions to accelerate progress, particularly with the production of sustainable aviation fuel and the potential for carbon removals,” said Walsh. 

He added that they will also assess their progress on safety, financial sustainability, and other key industry topics. 

“It’s important that we put these challenges on the table so that all stakeholders, including governments, have a clear understanding of what airlines need to connect people and economies safely, efficiently, and ever more sustainably,” IATA director general said. 

Meanwhile, the global aviation watchdog has announced a substantial decrease of nearly $1.8 billion in airline funds previously blocked by governments from repatriation.  

This reduction, representing a notable 28 percent decline, has been observed as of the end of April, according to a statement by IATA. 

Since December 2023, the blocked funds have diminished by $708 million, marking a significant step toward resolving the issue of hindered repatriation.  

IATA reiterated the call for governments to remove all barriers to airlines repatriating their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations. 

"The reduction in blocked funds is a positive development. The remaining $1.8 billion, however, is significant and must be urgently addressed. The efficient repatriation of airline revenues is guaranteed in bilateral agreements,” Walsh said. 

He added that even more importantly, it is a prerequisite for airlines — who operate on thin margins — to be able to provide economically critical connectivity. “No business can operate long-term without access to rightfully earned revenues.” 

IATA added that the main driver of the reduction was a significant clearance of funds blocked in Nigeria. Egypt also approved the clearance of its significant accumulation of blocked funds. However, in both cases, airlines were adversely affected by the devaluation of the Egyptian pound and the Nigerian naira. 


Global forum in Riyadh spotlights AI’s role in revolutionizing project management

Updated 11 min 58 sec ago
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Global forum in Riyadh spotlights AI’s role in revolutionizing project management

RIYADH: Artificial intelligence is emerging as the most integral tool for accelerating project management, signaling a big change in the sector, stated a senior Aramco official at an industry gathering in Riyadh.

Margarete Schramboeck, board member at Aramco Digital and former minister of Economy and Digital Affairs of Austria, said the energy firm is always at the forefront when it comes to partnerships, with many of these in cybersecurity, industrial automation, and telecom. 

She shared her insights during an interview with Arab News on the sidelines of the Global Project Management Forum held in Riyadh from June 2 to 3 – an event which is set to attract more than 2,000 attendees.

Reflecting on the growing use of advanced technology in the industry, Schramboeck said: “New forms of generative AI help us in all the process implementations, (and) inclusive AI means a completely new way of tackling projects.”

Speaking at the forum during a panel discussion titled “Opportunities and Success Factors in Giga Projects,” Ghanem Al-Mohammadi, former minister of municipal and rural affairs, challenged the traditional definition of giga-projects in urban development. He argued that it should consider interconnectedness, transformational impact, and sustainability. 

“People would gauge a project based on cost, but I would define a giga-project by its interconnectedness as a project that serves a city and can drive transformational growth,” he remarked.

Al-Mohammadi added: “Not only does it share complexity, but it also shares many attributes like stakeholder management and communication.” 

Participating in the discussion, Saadi Adra, CEO of Advisors, noted that managing 400 relatively small projects collectively adds up to the complexity of a giga-project.

While there isn’t a solid definition of giga-projects, Hesham Al-Babtain, EPMO general manager at the Ministry of Human Resources and Social Development, noted that the term gained popularity locally with Saudi Vision 2030’s large-scale projects such as NEOM and Qiddiya. 

In 2020, a royal order was issued to merge the Ministry of Civil Service with the Ministry of Labor and Social Development, forming the Ministry of Human Resources and Social Development. 

“Since then, we reached 2.2 million with the labor market, the unemployment rate decreased to 7.7 percent, and women’s participation in the labor market exceeded 35 percent,” said Al-Babtain.  

Laura Barnard, chief impact driver of PMO Strategies, emphasized the importance of ensuring that people understand that the most significant aspect is not the financial cost, but rather the positive impacts on society and the world through outcomes. 

“When you talk to business leaders, they are saying I’m willing to spend more or take longer if you can promise me that we’re going to get those even bigger, better business outcomes, change the world for the better, no matter what project it is,” he said. 

Benjamin Breen, global director of construction and vice president of Asia Pacific at the Project Management Institute, noted that “the definition of project success has evolved, moving beyond traditional metrics like time, cost, and quality.” 

He emphasized the need to redefine success, citing the Sydney Opera House as an example of a project with lasting impact despite initial challenges. 

The Global Project Management Forum serves as the flagship event for the profession, and showcases experts and industry leaders discussing the latest trends and topics in the sector, as well as emerging technologies and innovation.


Emirates president asks Boeing for compensation over 777x delays

Updated 21 min 29 sec ago
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Emirates president asks Boeing for compensation over 777x delays

  • Emirates is refurbishing many of its existing 777 aircraft as it waits for the new version

DUBAI: Emirates President Tim Clark on Sunday called on Boeing to compensate the airline for delays in the development of the US planemaker’s latest 777 jet, which the carrier has bought.

Emirates is refurbishing many of its existing 777 aircraft as it waits for the new version, known as the 777x. Clark said that Boeing should pick up the costs of the refurbishment.

He also told reporters in Dubai that Boeing could not say when exactly the new 777x jet would start being delivered.

Boeing has said deliveries would start in 2025, five years later than originally scheduled


National Transformation Program driving Vision 2030 forward, says CEO 

Updated 56 min 37 sec ago
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National Transformation Program driving Vision 2030 forward, says CEO 

RIYADH: Saudi Arabia’s National Transformation Program, the first initiative of Vision 2030, has played a significant role in driving the mission and helped the Kingdom achieve 34 of its 96 objectives, said its CEO. 

In an interview with Arab News on the sidelines of the Global Project Management Forum 2024 in Riyadh, Thamer Al-Saadoun, the top official of NTP, shared his insights about the program, which was launched in mid-2016. 

The national program is dedicated to achieving strategic objectives that are transforming Saudi Arabia into a leading nation. This includes empowering the private sector, enhancing government excellence, fostering economic partnerships, and fast-tracking the Kingdom’s digital transformation. 

“The program is one of the 11 different vision realization programs. It is the program and the vision that all of the different programs, all of the different initiatives work together to achieve that ambitious vision,” he explained. 

Al-Saadoun detailed the extensive scope of the NTP, saying: “We do have more than 300 initiatives, 79 KPIs, local and international, and we work with many ministries. So now over 50 government entities are working within the program with initiatives to achieve the targets.” 

Reflecting on the program’s success, he highlighted achievements across various sectors: “If we look at our last year’s results, I think the program has been successful on many fronts.” 

The CEO highlighted several key achievements, including empowering women and reaching Vision 2030 targets ahead of schedule.  

He noted significant progress in environmental initiatives, the growth of the nonprofit sector, and the enabling of small and medium-sized enterprises.  

Additionally, he emphasized the increased foreign investment, with over 200 companies receiving licenses to establish headquarters in Saudi Arabia each year. He also pointed out the country’s leadership in e-government and the digital economy. 

Reflecting on the GPMF, Al-Saadoun emphasized its global importance and personal value, stating: “I think it's one of the most important forums now globally. And I’m keen to attend it every year because of the value it brings.”  

He added: “It brings different experts and different sectors together, sharing experience, transferring knowledge. And the impact is really important. And I think in Saudi Arabia, with the vast number of projects that are happening, I think this forum is making a big impact.” 

Saudi Vision 2030, an ambitious plan to transform the Kingdom across various sectors, has made significant strides since its inception. Al-Saadoun praised its achievements, calling it one of the most inspiring success stories.  

“It’s an ambitious plan, aiming to transform a country like Saudi Arabia in all aspects, be it economic, social, etc. And if we look at the last seven years, it has been successful on many fronts,” he noted. 

Highlighting the key factors behind this success, Al-Saadoun first credited the unwavering support from the leadership.  

Collaboration and change management were also crucial, according to Al-Saadoun. “It is important in a vision with this magnitude that the different ministries, or even within the same organization, make sure there are no silos and there is collaboration,” the CEO emphasized. 

He added that capability building has been a cornerstone of the vision’s implementation, with forums like the GPMF playing a pivotal role.  

“What is happening in the forum here is key with building capabilities and making sure that people who are working on the vision and its initiatives have the right skill sets. And we are fortunate to have many younger Saudi men and women who are in the front seat, implementing the vision,” he added. 

Execution focus was another vital aspect, according to Al-Saadoun: “While we do have excellent plans in the different vision realization programs, focusing on execution has been key. We spend lots of time and focus on the execution of the different plans we have in place.” 

Al-Saadoun expressed optimism for the future, confident that the progress would continue. “And we are happy, and it’s only getting better and better. And we are aiming to achieve more in the coming years,” he concluded.