Saudi Arabia and UAE responsible for 90% of region’s green bond market: AMF chairman

Fahad Al-Turki, director-general and chairman of the Arab Monetary Fund. WAM
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Updated 06 March 2024
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Saudi Arabia and UAE responsible for 90% of region’s green bond market: AMF chairman

RIYADH: Saudi Arabia and the UAE now represent over 90 percent of the green bond market across the Arab region, according to a leading finance official. 

Director-General and Chairman of the Arab Monetary Fund Fahad Al-Turki shed light on the remarkable growth of sustainable financing, indicating a burgeoning emphasis on eco-conscious financing initiatives.

There was a substantial surge in green bond issuances in the region in 2023, totaling $6.8 billion as of October, marking a 40 percent irise from 2022, according to the Emirates News Agency.

Speaking at the inauguration of the third meeting of the Arab Green and Sustainable Finance Network in Abu Dhabi, Al-Turki noted that the UAE and Saudi Arabia emerged as principal contributors to green bond issuance.

The conference convened delegates from Arab central banks, finance ministries, securities market authorities, as well as experts and speakers from various regional and international institutions.

Al-Turki underscored AgreFin’s role as a platform for sharing expertise and knowledge on eco-conscious finance, aiming to propel green economic activities, services, and products while fostering awareness of sustainable finance and climate change risk management. 

It serves as a collaborative space for financial decision-makers in Arab nations to devise solutions, exchange best practices, and endorse investments aligned with environmental and social objectives, as reported by WAM.

Highlighting the imperative of transitioning to green and sustainable financing as a pivotal strategy in addressing climate change, Al-Turki emphasized the nexus between responsible financial practices and environmental impact, directing capital toward conscious initiatives. 

He stressed its pivotal role in nurturing resilient and responsible growth in societies through informed decision-making, collaborative endeavors, and strategic planning, ultimately bolstering policies, investments, and actions that shape the planet’s future.

Al-Turki underscored AMF’s commitment to green and sustainable financing, recognizing the impact of climate change on the financial and banking sectors.

He highlighted the significance of integrating environmental, social, and governance standards in financial activities and investment policies across Arab countries to foster development and enhance energy security. 

The fund has facilitated workshops and training courses, issued guidelines, and conducted research in partnership with Arab and international financial institutions to address these challenges effectively.

He stressed the importance of collective efforts for the success of the Arab Green and Sustainable Finance Network, underscoring the value of dialogues, idea exchanges, and shared experiences in advancing green and sustainable financing for a more prosperous future in Arab nations. 

Additionally, Al-Turki expressed gratitude for the UAE’s sponsorship and support as the host country, acknowledging its role in enabling the network to fulfill its responsibilities.


How KAUST is transforming waste into wealth

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How KAUST is transforming waste into wealth

  • Researchers target $275m market with waste-to-value algae innovation

RIYADH: Turning food waste into a valuable industrial product may sound improbable, but scientists at King Abdullah University of Science and Technology are proving it is possible — using algae that has existed for millions of years. 

Last month, researchers at the university unveiled a sustainable method that harnesses an ancient red microalga to reduce food waste in the Kingdom while producing a high-demand natural pigment.

The study was led by bioengineering student Mauricio Masson, with support from Michael Fox, assistant professor of marine science, alongside researchers from KAUST and the Arizona Center for Algae Technology and Innovation. The international team included Kyle Lauersen, KAUST associate professor and lead author of the study.

Scientists at King Abdullah University of Science and Technology (KAUST) developed a sustainable method to use an ancient type of algae while reducing food waste in the kingdom. (Supplied)

The research highlights a “sustainable bioprocessing” approach, demonstrating how an aquatic plant can convert chocolate factory waste into C-phycocyanin — a blue pigment with a global market expected to reach $275 million over the next four years.

“Our research focused on an extremophilic red alga that can thrive in harsh conditions and efficiently consume sugars and nutrients found in food waste streams,” said Lauersen.

Lauersen is an associate professor and chair of the bioscience and bioengineering programs in the Biological and Environmental Sciences and Engineering Division at KAUST. He explained that a key objective of the study was to show that food waste — often discarded or sent to landfills — can be repurposed as a feedstock for producing high-value compounds, including natural pigments and proteins, through algae-based bioprocesses.

“Our main goal was to develop an environmentally friendly approach to turn waste into useful products that have the potential to be scaled,” Lauersen told Arab News.

FASTFACT

Did you know?

• By 2030, the global market for C-phycocyanin is projected to exceed $275 million, reflecting growing demand across food, health, and industrial sectors.

• C-phycocyanin has demonstrated potential benefits in antioxidation, inflammation, cancer research, antimicrobial activity, neurodegeneration, diabetes management, and wound healing.

• As a natural pigment, C-phycocyanin offers a healthier alternative to synthetic food colorants and is approved by the US FDA for use in food products.

He added: “Algae are especially well suited for this because they grow quickly, require relatively few resources, and can metabolize a wide range of organic compounds.”

The red microalga Galdieria yellowstonensis feeds on chocolate waste rich in residual sugars, producing a protein-dense biomass that contains C-phycocyanin, according to KAUST. The pigment is widely used as a natural food coloring — found in products such as ice cream and blue-colored beverages — as well as in cosmetics and pharmaceuticals.

Beyond the study’s original goals, researchers also discovered that elevated levels of carbon dioxide significantly enhance algae growth, even though CO₂ is typically considered a byproduct of microbial sugar consumption.

Another major outcome of the research is its potential to reduce land pollution by transforming food waste into a nutrient source for algae, offering a sustainable alternative to disposal. 

Galdieria yellowstonensis feeds on chocolate waste containing residual sugar, producing a protein-packed biomass that includes C-phycocyanin. (Supplied)

KAUST believes the findings could positively impact Saudi Arabia’s economy by helping food manufacturers lower production costs while addressing environmental concerns.

“The species we studied can grow on waste streams that are unsuitable for conventional crops or microorganisms,” said Lauersen.

“This makes algae an attractive platform for circular economy solutions, where waste is transformed directly into valuable materials rather than being treated as a disposal problem.”

The research effort is ongoing. Scientists at KAUST are currently collecting chocolate waste locally and plan to scale up the process using other industrial waste streams available across the Kingdom. The initiative aims to support companies in transitioning toward a circular carbon economy while contributing to Saudi Arabia’s green agenda.

“Food waste is a major global challenge, contributing to greenhouse gas emissions, resource inefficiency, and environmental degradation,” said Lauersen.

“By recycling waste into useful products, we can reduce pressure on landfills, lower emissions, and make better use of existing resources.”

“These types of solutions are essential as industries worldwide face growing demands to become more sustainable and climate resilient, especially in the Middle East, which relies on heavily on imports.”