Need to invest in new supplies to deal with energy volatility: IEF official  

International Energy Forum Secretary General Joseph McMonigle. (Supplied) 
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Updated 15 February 2023
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Need to invest in new supplies to deal with energy volatility: IEF official  

RIYADH: The only way the world can beat sky-rocketing energy prices and ongoing market volatility is through investing in new supplies, according to a top official of a global energy body. 

Speaking at the opening ceremony of the 13th International Energy Forum, the organization's Secretary General Joseph McMonigle said that market uncertainties and fuel price volatility are harming consumers, investors, businesses and government. 

“The only sure antidote to high energy prices and market volatility is adequate investments in new supplies,” he said, adding that the security of energy supplies has emerged as a top priority for policymakers. 

McMonigle added: “Long-term demand has now compounded with risks, particularly in the oil and gas markets.” 

The IEF Secretary General pointed out that a lack of funding in the sector could negatively impact the ongoing energy transition and climate actions. 

“Underinvestment threatens to undermine energy security, and it can also stop progress on climate goals by undermining public support for climate actions and increasing reliance on more carbon-intense options for the short term as we have seen,” said McMonigle. 

He suggested that investment decisions in the energy sector should be based on realistic scenarios and real-time data on demand outlooks to prevent supply shortfalls. 

“Clear assessments of the likelihood of ‘scenario outcomes’ based on recent trends, investment levels, consumer behavior and policy enforcement could enhance the usefulness of the outlook for investors and policymakers,” said McMonigle. 

While aspirational scenarios are essential for tracking progress toward climate goals, he insisted it is equally important to provide outlooks based on current policies and consumer trends. 

McMonigle further pointed out that a better understanding of the future energy outlook is very much necessary to combat the challenges posed due to global crises including climate problems and economic uncertainties. 

“Fostering a greater and mutual understanding of the energy outlooks of the IEA, OPEC, and other international organizations, I think have never been more important,” he concluded. 


From 2 hours to 30 minutes: Qiddiya Bullet Train to cut Riyadh travel time by 75% 

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From 2 hours to 30 minutes: Qiddiya Bullet Train to cut Riyadh travel time by 75% 

RIYADH: Qiddiya is set to become significantly more accessible under plans to link the entertainment and tourism hub to King Salman International Airport and the King Abdullah Financial District through the new Qiddiya Bullet Train, Asharq Al Awsat reported

The project will reduce travel time to around 30 minutes, down from nearly two hours using other transport options, representing a 75 percent cut in commuting time. Operational speeds are expected to reach 250 km per hour, according to the Royal Commission for Riyadh City. 

The railway forms part of a broader transport strategy aimed at improving connectivity across the capital and enhancing mobility between key destinations, in line with population growth and urban expansion in western and southwestern Riyadh. 

In a related development, the commission announced the awarding of the Red Line extension of the Riyadh Metro to Diriyah. The expansion includes 7.1 km of tunnel and 1.3 km of elevated track, with stations at King Saud University and Diriyah. The latter is expected to serve as a future interchange with the planned Line 7. 

Officials estimate the project could remove around 150,000 cars from daily traffic, improving access to tourist destinations such as Bujairi Terrace and Wadi Safar, while supporting more sustainable mobility patterns. 

Bandar Al-Saadoun, vice chairman of Khaleejiah Holding, told Asharq Al-Awsat that the Diriyah development ranks among the largest projects under Vision 2030. He pointed to additional landmark initiatives in Wadi Safar, alongside the Opera House project and King Salman Grand Mosque. 

He said extending the Red Line along King Abdullah Road to Diriyah would generate strong real estate demand, particularly as the rail network integrates routes from King Salman International Airport through KAFD, Diriyah and the New Murabba development. 

Al-Saadoun added that roughly 30 projects have been announced in Qiddiya, raising the prospect of gradual real estate growth along corridors connected to the rail line. The project’s links to major developments — including Expo 2030 Riyadh, New Murabba and The Avenues — as well as the airport, which is expected to become one of the world’s largest by 2030, are likely to reinforce demand. 

Real estate analyst Khaled Almobid said large-scale transport projects such as the Qiddiya Bullet Train do more than lift prices; they reshape market structure and asset values over the medium and long term. 

Historically, properties within one to three km of transport stations see capital appreciation and rising investment demand, particularly for undeveloped “white land,” which often transitions into higher-density projects, he said. 

Almobid expects a dual impact: both redistribution of demand within Riyadh and genuine market expansion driven by what he called “manufactured demand” from Qiddiya, which is projected to attract 17 million visitors and generate 325,000 jobs. He also anticipates a population shift toward western Riyadh and areas surrounding the new stations. 

Land prices near Qiddiya have already risen between 30 percent and 40 percent since 2023, reflecting early market anticipation, he said, predicting more sustainable growth once operations begin and prices align with the tangible value of cutting travel time to 30 minutes between the airport, KAFD and Qiddiya. 

Residential and tourism-related real estate are likely to lead the next phase, supported by Saudi Arabia’s goal of raising homeownership to 70 percent and attracting 150 million annual visitors by 2030, with mixed-use locations along the rail corridor expected to draw the strongest investment interest.