RIYADH: Expressing her optimism about the prospects of voluntary carbon credits, the CEO of Regional Voluntary Carbon Market Co. expects a positive response from the Middle East and North Africa region, with the market set to reach 100-150 million tons by 2030.
Efforts to mitigate the effects of climate change are also likely to get a boost, as Saudi Arabia is on track to establishing a carbon credit exchange platform by the second half of 2024.
Speaking to Arab News, Riham ElGizy highlighted three main offerings that the exchange market will provide.
She said it is “going to be a spot market to help price discovery by 2024. We will have as well in that exchange over-the-counter (trading), we will have a marketplace for suppliers to sell their own product(s).”
ElGizy said before the establishment of the platform RVCMC will make available exchange and advisory services to buyers and suppliers.
“We’re not waiting till the exchange comes online by 2024.”
Referring to the carbon offset auction held in Nairobi in June, the CEO described it as the “biggest ever” in the history of the market in which 16 Saudi companies representing major economic sectors took part.
A carbon credit or offset credit is a transferrable financial instrument certified by governments or independent certification bodies to represent an emission reduction that can then be bought or sold. It is bought to compensate for the emissions of carbon dioxide or other greenhouse gases.
“If you talk about the oil and gas sector, we had Saudi Aramco, the biggest oil and gas company in the world, and we had SABIC. If we talk about the construction sector, we had with us the cement company Yanbu Cement, and we had also ENOWA,” she said.
Other companies that participated in the auction included Golf Saudi, Saudi telecom giant stc, Saudi Electricity Co., and the Saudi National Bank.
“The aviation industry was represented by Saudia, which is a great partner to us as well,” she added.
That auction witnessed a trade of 2.2 million tons of carbon credits. Putting that number into perspective, she noted that this is equivalent to the emissions of approximately 650,000 family cars for one year.
Last year, the global trade in voluntary carbon market transactions amounted to 150 million tons of CO2 emissions, with a corresponding value of $2 billion, a quantity comparable to the emissions of a nation such as Algeria.
“Which is very good, but not good enough,” ElGizy said.
Zooming in on the MENA region, the CEO mentioned that when they first started there was no supply and no demand. She stated that their global market share reached 3 percent over the past year, primarily as a result of two successful auctions they conducted, with the first auction taking place during the first day of the 6th Future Investment Initiative held in Riyadh.
ElGizy remarked “The (carbon credit) market globally is growing at 30 percent per annum and the MENA region will grow proportionately with that. We expect the market to reach 100 to 150 million tons by 2030, which represents the forestation for a country like Germany.”
In voluntary carbon markets, companies or individuals use carbon offsets in order to meet self-defined goals for reducing emissions.
RVCMC, established in October last year, is 80 percent owned by the Public Investment Fund, and 20 percent by Tadawul Group with a SR500 million ($133 million) capital.
The company, which allows carbon emitters to offset their emissions by purchasing carbon credits, seeks to be a global leader in the carbon market.
“Not only serving the Saudi market or even the MENA region, we want to be a global market and we can do that,” she noted.
Furthermore, it aims to accelerate climate action and to be the leader in the Global South.
“What we provide is very different than a typical carbon market because we look at it holistically from an ecosystem perspective,” ElGizy said.
MENA carbon market likely to reach around 150m tons by 2030
https://arab.news/v6j4f
MENA carbon market likely to reach around 150m tons by 2030
Poland expects trade with Saudi Arabia to grow to $10 billion, finance and economy minister tells Arab News
- Andrzej Domanski says his country’s companies are looking for reliable partners like Saudi Arabia
- Highlights opportunities in clean energy, ICT, food security and construction cooperation on Riyadh visit
RIYADH: Saudi Arabia’s pace of transformation, its economic ambition under Vision 2030, and its role as Poland’s biggest Middle Eastern trading partner are driving a new phase in bilateral relations, Andrzej Domanski, Poland’s finance and economy minister, has said.
Speaking to Arab News during a visit to Riyadh on Monday, Domanski discussed how the two nations might expand their trade ties, the sectors where Polish businesses enjoy an edge, and the potential for broadening the bilateral relationship.
“We have better and better economic relations with the Kingdom of Saudi Arabia. We will reach $10 billion in our trade,” Domanski said, describing Saudi Arabia as a “reliable partner” at a time when Polish companies are actively seeking diversification and new markets.
His visit comes as Saudi-Polish economic ties deepen beyond a historically oil-focused relationship into a broader partnership spanning energy transition, technology, construction, food security and potentially defense cooperation.
This evolution mirrors Saudi Arabia’s Vision 2030 diversification drive and Poland’s emergence as one of Europe’s fastest-growing large economies.
Domanski said Riyadh itself offered a powerful visual symbol of Saudi Arabia’s economic momentum.
“I must say that it’s my first visit to Riyadh and I’m really impressed,” he said. “I’m impressed by the pace of development. The thousands of cranes in the city. It is also a proof of how quickly Saudi Arabia is developing.”
Bilateral trade between Saudi Arabia and Poland has expanded rapidly in recent years, driven largely by energy flows. Saudi Arabia is now Poland’s main crude-oil supplier, accounting for roughly 60 percent of Poland’s oil imports.
Trade volumes have risen from about $7 billion in 2022 to around $8.5 billion in 2023, with Domanski predicting the $10 billion mark will soon be reached.
“We are, of course, importing crude oil. But we’d like to together search for new business opportunities for both Saudi and, of course, Polish companies,” he said.
Domanski argued that growth prospects make the country an attractive destination for Saudi investment.
“On our side, we are also doing pretty well. We are the fastest growing large European economy,” he said. “This year we will work in the G20 format. This is because last year we joined the Group of the 20 biggest economies in the world. And we are frankly proud of that.”
Inflation, he added, has fallen sharply. “Inflation went down significantly, 2.5 percent. Very reasonable. A reasonable level. Investment started to pick up,” he said, pitching Poland as a stable European base for Saudi capital.
A recurring theme of Domanski’s visit was the alignment between Poland’s development priorities and Saudi Arabia’s Vision 2030 agenda.
“Our companies, our economy, are fully aligned with the ambitious Vision 2030 that is realized here,” he said.
Energy cooperation remains central, anchored by Saudi Aramco’s stake in the Lotos refinery in Gdansk — the largest Saudi direct investment in Poland — which underpins long-term crude-supply contracts and Poland’s energy-security strategy.
But Domanski stressed that the future lies increasingly in clean energy.
“It’s worth noting that right now Poland is building onshore capabilities, offshore capabilities, solar capabilities. And we are constructing the first Polish nuclear power plant,” he said.
“We want to diversify from coal into nuclear and renewables. And I believe that our Saudi partners could participate in this clean energy transformation of the Polish economy.”
The shift reflects broader cooperation under way between Warsaw and Riyadh on green energy and hydrogen, dovetailing Poland’s decarbonization plans with Saudi Arabia’s push to develop non-oil sectors.
Technology and digital services emerged as one of the most promising areas for expansion, with Poland positioning itself as a provider of high-end IT talent for Saudi Arabia’s digital and AI-driven projects.
“ICT solutions. We have really great companies that provide the best solutions. They are already well recognized in Western European countries. They have their footprint here in Riyadh,” Domanski said.
“Having said that, they still lack scale. So my visit here is also to discuss that kind of business opportunity.”
Polish officials frequently point to the country’s deep pool of programmers and cybersecurity specialists. Warsaw has signaled plans for dozens of Polish firms to establish regional headquarters in Saudi Arabia, particularly in AI, cybersecurity and digital infrastructure.
Domanski underscored Poland’s strengths in specific niches.
“I believe that we are really top class,” he said. “For example, in cybersecurity, we really have companies that are providing the best solutions for smart cities in Western Europe.
“But, I believe there is lots of room for strengthening this presence and the cooperation with Saudi partners.”
Food security is another area where Poland sees scope for joint ventures and long-term cooperation. “We are quite an important food producer,” Domanski said. “We have knowhow. We have land. We have a growing sector.
“And I believe that, for example, through joint ventures with our Saudi partners, we could establish a long lasting cooperation in this sector.”
The construction sector also featured prominently, reflecting the scale and pace of development under way across the Kingdom.
“We have lots of contractors that proved to be very efficient and contractors that keep timelines and realize how it is important to deliver on time,” Domanski said.
“And I believe that here, seeing how quickly Saudi Arabia is developing, those contractors could also help in your development.”
Domanski highlighted the importance of institutional frameworks and regular high-level engagement. During his visit, discussions focused on communication mechanisms and a formal framework for cooperation.
“First of all, we need communication and we need to have a frame for cooperation,” he said.
“So this is why I’m really glad that together with the minister of trade, minister of investment, we were discussing both communication, and we’d like to see each other, invite each other more often, as this is very, very, important.
“And we’d like to set, also, the frame for cooperation. And such a document will be signed today. So we will decide who will be responsible for some particular areas and when we would like some results to be delivered.”
The move builds on existing structures, including the Saudi-Polish Coordination Council and a Saudi-Polish Business Council, as well as a new memorandum of understanding signed in January to strengthen the partnership’s strategic character.
Domanski said he hopes Saudi delegations will soon travel to Poland, including for major economic and reconstruction-focused events.
“I do hope that our friends from Saudi Arabia will join us during our economic congress, which will take place in Katowice in the Silesia region, the most industrialized region of Poland, at the end of June,” he said.
He also highlighted Poland’s role in hosting a major summit on Ukraine.
“We will host the Ukrainian Recovery Conference, which is a truly international event. And we would also love to see our Saudi friends to be there,” he said.
“I’ve invited ministers to participate in those events.”
While his focus remains economic, Domanski did not rule out expanding cooperation into defense, particularly as Poland ramps up military spending and industrial capacity.
“Unfortunately I couldn’t attend,” he said, referring to the World Defense Show currently taking place in Riyadh. “Having said that, it’s worth noting that Poland spends close to 5 percent of our GDP on defense. We intend to build a very strong defense industry in Poland.
“We are, of course, supporting, building a strong defense industry in Europe. But of course, I’m mostly focused on Poland. And therefore I believe that we can provide really, very good solutions for and very good equipment that could be presented here, and hopefully we can develop our cooperation also in this sector.”
For Domanski, Saudi Arabia represents not only Poland’s most important economic partner in the Arab world, but a gateway to diversification and scale.
“Polish companies are getting larger and larger,” he said. “And, of course, are looking for diversification, looking for new markets and for reliable partners like Saudi Arabia.”
