King Abdullah Financial District signs agreement with Japanese Sumitomo Corp. to fight climate change

The products manufactured in Japan use state-of-the-art technology that will be applied in KAFD to reflect infrared radiation (Abdulrahman Shalhoub)
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Updated 01 February 2023
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King Abdullah Financial District signs agreement with Japanese Sumitomo Corp. to fight climate change

RIYADH: King Abdullah Financial District signed a Memorandum of Understanding with Sumitomo Corporation Middle East to utilize its innovative and eco-friendly technology to tackle climate change by reducing the heat island effect on surfaces within KAFD on Tuesday in Riyadh.

“For us, partnering with Sumitomo on this new technology is extremely important, because as a district, as KAFD, reducing greenhouse emissions and reducing the heat island effect are extremely important, and this technology with Sumitomo will help us,” Gautam Sashittal, CEO of KAFD, told Arab News.

According to Sashittal, from a KAFD point of view, being a sustainable district is very important. “We have several initiatives that have been implemented and are being implemented, and that is just part of our sustainable solutions to burnish our credentials,” he said.

Sumitomo, a subsidiary of the Fortune 500 global trading and business investment company, Sumitomo Corporation Group, signed the agreement with KAFD Development and Management Company to support KAFD’s goals for smart city development and technological advancements to create energy-efficient, intelligent buildings.

The products manufactured in Japan use state-of-the-art technology that will be applied in KAFD to reflect infrared radiation, which in return reduces surface temperature, heat flow, and maintenance costs caused by the heat island effect.

“We are honored to have the opportunity to collaborate on this project with KAFD, implementing our advanced solutions. Sustainability is a top priority for both companies. With this agreement, we look forward to working with KAFD DMC and sharing our experiences to enhance energy efficiency in its facilities,” Hajime Mori, managing director of Sumitomo Corporation Middle East FZE said.

Heat islands are created in cities that experience higher temperatures, when structures and pavements begin to absorb and re-emit heat from the sun to surrounding areas, intensifying the effects of climate change and potentially having a harmful effect on health.

Through the agreement, Sumitomo is already in line to begin pilot testing in several locations within KAFD for two products, one of which is called MIRACOOL. This product reduces surface temperatures of buildings and facilities that are exposed to solar radiation. The other product is PERFECT COOL, which is a solar heat-blocking pavement that reduces surface temperature by applying a cooling coat to the pavement surface.

Through this cooperation, KAFD will implement the PERFECT COOL coating that will reflect infrared radiation through a combination of special heat reflecting pigment that reduces the increase in road surface temperatures during the day and suppresses radiant heat at night.

“Combatting climate change is a priority for KAFD as a modern, sustainable metropolis. It’s estimated that by 2030, 1.9 billion people will be exposed to heat stress, and this collaboration with Sumitomo is an excellent opportunity for the district to develop heat resilience and sustainable cooling solutions.

By lowering the temperature, we will contribute to a better living and working environment for our tenants and residents and employees,” the CEO of KAFD DMC said.

Sashittal explained to Arab News that the use of the technology in the pavements not only reduces the heat island impacts but also increases the longevity of KAFD assets.

“We have looked at several initiatives in order to minimize our carbon footprint. We have an intelligent waste evacuation system for the entire district, we have water recycling opportunities, we have district cooling plants that supply chilled water across the districts,” he said.

“Last year we went through a major greenification drive, and today we have about 700 palm trees, 4,000 canopies, we have almost about half a million shrubberies and bushes that we have planted last year, and all of this actually compliments what we are doing with Sumotoma, which is about reducing the heat, making it more comfortable and sustainable.”


Closing Bell: Saudi main market closes the week in red at 10,526 

Updated 25 December 2025
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Closing Bell: Saudi main market closes the week in red at 10,526 

RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.    

The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.  

Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.    

Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).    

On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.    

Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.    

On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.  

Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.    

Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.  

On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.    

The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.  

Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.     

Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.    

The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.