MENA region seeing sharp growth in renewable energy sector: IEA

A giant wind farm is being built in Egypt which will provide power to 11 million homes. Shutterstock
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Updated 05 June 2024
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MENA region seeing sharp growth in renewable energy sector: IEA

RIYADH:The Middle East and North Africa region is registering the highest growth in the global renewable energy sector due to its relatively small current base and ambitious 2030 targets.

In its latest report, the International Energy Agency said the region shows the highest growth factor based on its ambitions — 4.5 times its current base, led by Saudi Arabia, Egypt and Algeria. 

“The MENA region accounts for less than 8 percent of global emissions from power generation and heat production. It aims to realize its significant untapped renewable energy potential by increasing capacity from less than 50 gigawatts in 2022 to 200 GW by 2030,” said IEA. 

It added: “Two-thirds of this ambition is concentrated in four countries: Saudi Arabia, Egypt, Algeria and Israel.” 

Saudi Arabia leading from the front

According to the report, Saudi Arabia is playing a crucial role in this energy transition journey, with the nation eyeing to boost its renewable capacity to 59 GW by 2030. 

“The Kingdom had less than 1 GW of renewable energy capacity installed in 2022 and it aspires to 59 GW by 2030, a significantly higher aim than it originally set in 2016 (9.3 GW). The increase was announced in 2019, in conjunction with plans to achieve net zero emissions by 2060,” said IEA. 

Algeria aims to install at least 14 GW of solar photovoltaics and 5 GW of wind by 2030, while Egypt seeks to increase renewable power generation to 37 GW by the end of this decade. 

According to the report, solar PV makes up almost half of the capacity aims for 2030. 

IEA highlighted that if all the projected ambitions in the region materialize, capacity for this energy source in the region will increase from 16.5 GW in 2022 to over 90 GW by 2030. 

“Even higher amounts could be achieved if some of the non-specified capacity in government ambitions is allocated to solar PV. High solar irradiation levels and increasing competitiveness make solar PV the main technology choice in the region’s ambitions,” said IEA. 

Clean energy transition progressing steadily




COP28 was held in Dubai in 2023

According to the analysis, countries worldwide have a significant opportunity over the coming months to develop clear plans for boosting renewable power, which could help move the planet closer to achieving the 2023 UN Climate Change Conference goal of tripling global capacity by 2030.

The report highlighted that tripling clean energy sources by the end of this decade is achievable through right policy decisions by governments. 

“At COP28, nearly 200 countries pledged to triple the world’s renewable power capacity this decade, which is one of the critical actions to keep alive hopes of limiting global warming to 1.5 degrees Celsius. This report makes clear that the tripling target is ambitious but achievable – though only if governments quickly turn promises into plans of action,” said Fatih Birol, executive director of IEA. 

He added: “By delivering on the goals agreed at COP28 – including tripling renewables and doubling energy efficiency improvements by 2030 – countries worldwide have a major opportunity to accelerate progress toward a more secure, affordable and sustainable energy system.” 

MENA projects set to boost renewable capacity

 

Shuaibah Two (2) Solar Facility

Place: Mecca Province, Saudi Arabia
Power: 2.06 GW  by 2030

 


Gulf of Suez Wind Power Project 
Place: Egypt
Power: 1.10 GW by 2026

 

Al-Ajban solar park

Place: Abu Dhabi, UAE
Power: 1.5 GW by 2026

 


Mohammed bin Rashid Al Maktoum Solar Park
Place: Dubai, UAE

Power: 5 GW by 2030

 

NEOM Green Hydrogen Project
Place: NEOM, Saudi Arabia
Power: 600 tonnes per day of green hydrogen by 2026 

Sharp price drop in renewable energy technologies

The energy think tank highlighted that more countries are turning toward renewables, such as solar PV and wind, following a sharp drop in costs over the past decade and renewed efforts by governments to build resilient energy systems with lower emissions.

According to the report, the amount of renewable capacity added worldwide each year has tripled since the Paris Agreement was signed in 2015. 

IEA revealed that the global renewable capacity additions reached almost 560 GW in 2023, representing a 64 percent year-over-year increase from 2022, with China becoming the biggest contributor. 

The energy agency also noted that the transition journey faces particular challenges, including lengthy wait times for project permits, inadequate investment in grid infrastructure, and high financing costs, especially in emerging and developing economies.

IEA added that governments should implement targeted actions to overcome these obstacles. 

“For example, on reducing financing costs to improve the bankability of renewable projects, it suggests approaches such as improving long-term policy visibility; supporting projects in the pre-development phase; and reducing price, inflation and exchange rate risks,” said the think tank. 

In May, another report released by the IEA said that the rapid rollout of clean technology will make energy cheaper. 

According to that study, the key task for governments globally is to make clean energy technologies more accessible to those who may otherwise struggle with the upfront costs. 

The agency highlighted that clean energy technologies are already more cost-competitive over their lifespans than those reliant on conventional fuels like coal, natural gas, and oil, with solar photovoltaic and wind being the cheapest options for power generation. 

The report highlighted that electric vehicles, although expensive compared to their traditional counterparts, will be cost-effective in the long run due to their low maintenance costs. 

The energy agency further noted that incentives and greater support, mainly targeted at disadvantaged households, can improve the uptake of clean energy technologies in the coming years. 

In the same month, IEA highlighted that investments in clean energy technology are strengthening the global economy by creating new industrial and employment opportunities. 

IEA noted that ensuring a reliant and diversified supply of energy transition minerals is crucial to meet the net-zero targets. 

The report also revealed that the market size of key energy transition minerals is expected to double from now to reach $770 billion by 2040.


Lebanon amends banking secrecy law in key reform

Updated 24 April 2025
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Lebanon amends banking secrecy law in key reform

BEIRUT: Lebanon’s parliament on Thursday granted regulatory bodies greater access to bank account information, a key reform demanded by international creditors before the crisis-hit country can unlock bail-out funds.

Prime Minister Nawaf Salam called parliament’s approval of changes to banking secrecy laws “a necessary step toward the desired financial reform that our government promised to achieve, and a fundamental pillar to any recovery plan.”

Adding that the decades-old culture of financial opacity was no longer the boon to investment it once was, Salam said the reform was fundamental to “restoring the rights of depositors and the confidence of citizens and the international community.”

Lebanon was once a booming regional financial hub dubbed the “Switzerland of the Middle East,” with strict banking secrecy laws a key attraction, but the economic crisis that began in 2019 shredded its fiscal reputation.

Since then, authorities have come under local and international pressure to amend the laws amid accusations that influential figures spirited large sums abroad while regular depositors were locked out of their life savings and the local currency’s value plummeted.

Lebanese rights group Legal Agenda said the amendments allow “banking supervisory and regulatory bodies” including the central bank “to request access to all banking information without linking the request to a specific objective.”

These bodies will now be able to audit customer accounts by name, access deposit details and look into possible suspicious activity, the group said.

The changes are among several major reforms Lebanon needs to make to unlock billions of dollars in aid to restart the economy after the collapse, which was widely blamed on mismanagement and corruption.

Finance Minister Yassine Jaber told local broadcaster LBC that the amendments “opened greater space” for Lebanon’s central bank to access accounts.

But “we should not think that with this law, anyone can enter a bank and demand account details” for whoever they like, added Jaber, who is in Washington with other senior officials for meetings with the IMF and the World Bank.

Alain Aoun, a member of parliament’s finance committee, said the move followed 2022 banking secrecy amendments that the IMF had viewed as “insufficient.”

Now, regulatory bodies will be able to request “the information they want” on bank accounts, he said.

The cabinet, which approved the amendment earlier this month, said it would apply retroactively for 10 years from the date of request, meaning it would cover the start of the economic crisis.


IMF to help Syria reintegrate into global economy, says Georgieva

Updated 24 April 2025
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IMF to help Syria reintegrate into global economy, says Georgieva

WASHINGTON: The International Monetary Fund plans to work with Syria to help it reintegrate into the global economy, IMF chief Kristalina Georgieva said on Thursday, citing a meeting on the war-scarred nation held this week.

Georgieva told reporters that Syria’s central bank governor and finance minister attended the Spring Meetings of the IMF and World Bank this week for the first time in over 20 years.

“Our intention is to, first and foremost, help them rebuild institutions so they can plug themselves in the world economy,” she said.

Officials from the IMF and World Bank met with Syrian officials and other finance ministers and key stakeholders to discuss the country’s reconstruction on the sidelines of the meetings in Washington.

The high-level Syrian government delegation’s Washington trip marked the first US visit by Syria’s new authorities since former President Bashar Al-Assad was toppled in December.

Much of Syria’s infrastructure has been left in ruins by nearly 14 years of war sparked by the government authorities’ deadly crackdown on protests against Al-Assad.

The government that took over after Al-Assad was ousted has sought to rebuild Syria’s ties in the region and further afield and to win support for reconstruction efforts.

But tough US sanctions imposed during Al-Assad’s rule remain in place.

In January, the US issued a six-month exemption for some sanctions to encourage humanitarian aid, but this has had limited effect.

Reuters reported in February that efforts to bring in foreign financing to pay public sector salaries had been hampered by uncertainty over whether this could breach US sanctions.


Closing Bell: TASI closes in green at 11,764  

Updated 24 April 2025
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Closing Bell: TASI closes in green at 11,764  

RIYADH: Saudi Arabia’s Tadawul All Share Index concluded Thursday’s trading session at 11,764.39 points, marking an increase of 83.28 points or 0.71 percent. 

The total trading turnover of the benchmark index was SR6.95 billion ($1.85 billion), as 173 stocks advanced, while 67 retreated.  

The MSCI Tadawul Index also surged by 11.97 points, or 0.80 percent, to close at 1,500.71.  

The Kingdom’s parallel market, Nomu also increased, gaining 135.49 points, or 0.48 percent, to close at 28,598.60 points. This comes as 37 of the listed stocks advanced while as many as 42 retreated. 

The main index’s top performer, Saudi Paper Manufacturing Co., recorded a 9.97 percent increase in its share price, closing at SR69.50. 

Other notable gainers included Derayah Financial Co., which rose 8.22 percent to SR30.95, while Al-Baha Investment and Development Co. saw its share price climb 6.34 percent to SR3.52. 

Saudi Arabian Mining Co. also recorded a positive trajectory, with its share price rising 5.74 percent to SR47.00. Saudi Reinsurance Co. posted similar gains, increasing 5.29 percent to close at SR43.75. 

Mulkia Gulf Real Estate REIT recorded the steepest decline on TASI, with its share price slipping 4.71 percent to close at SR5.26.  

Musharaka REIT Fund followed with a 3.51 percent drop to SR4.67. Saudi Cable Co. also saw a notable decline of 3.20 percent to settle at SR139.    

On the parallel market, Hedab Alkhaleej Trading Co. was the top gainer, with its share price surging by 9.25 percent to SR44.90. 

Other top gainers on Nomu included Al Mohafaza Co. for Education, which surged 7.79 percent, or SR1.80, to close at SR24.90, and Shalfa Facilities Management Co., which rose 7.43 percent, or SR5.50, to reach SR79.50.  

Aqaseem Factory for Chemicals and Plastics Co. and Jana Medical Co. were the other top gainers on the parallel market. 

Osool and Bakheet Investment Co. posted the largest decline on Nomu, with its share price falling 8.11 percent to SR34. 

Altharwah Albashariyyah Co. fell 7.86 percent, or SR3.85, to close at SR45.15, while Meyar Co. declined 7.32 percent, or SR4.80, to settle at SR60.80 — making them among the top decliners on the parallel market. 


Saudi Arabia launches major dairy cluster in Al-Kharj

Updated 24 April 2025
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Saudi Arabia launches major dairy cluster in Al-Kharj

JEDDAH: Saudi Arabia has launched a major dairy industrial cluster in Al-Kharj, reinforcing its ambition to become the region’s leading hub for dairy production and food manufacturing.

Announced during the Saudi Dairy Forum in Al-Kharj — located approximately 90 km southeast of Riyadh — the initiative is a strategic component of the Kingdom’s broader National Industrial Strategy. The cluster spans 1 million sq. m and is equipped with advanced infrastructure tailored to support dairy manufacturing and related industries.

Minister of Industry and Mineral Resources Bandar Alkhorayef, speaking at the forum, underscored the project’s role in attracting high-value investments and enhancing the Kingdom’s food security.

He revealed that the dairy sector reached a market size of SR22 billion ($5.87 billion) in 2024, with exports totaling SR4.8 billion and imports at SR8.9 billion.

According to the IMARC Group, the market is projected to grow to $8.4 billion by 2033, with a compound annual growth rate of 3.8 percent from 2025 to 2033.

“This project aligns with the goals of the National Industrial Strategy to position Saudi Arabia as a regional hub for food industries,” Alkhorayef stated, as reported by the Saudi Press Agency.

He said it will offer investors access to fully developed industrial land, modern facilities, storage solutions, and a comprehensive support system.

In a statement on social media, Alkhorayef expressed gratitude to Riyadh Governor Prince Faisal bin Bandar for his patronage of the forum and for inaugurating the country’s first dairy industrial cluster in Al-Kharj Industrial City.

The minister noted that Saudi Arabia has achieved 129 percent self-sufficiency in dairy production, underscoring the sector’s resilience and capacity for growth. Al-Kharj alone contributes over 70 percent of the Kingdom’s total dairy output, supplying both local and regional markets.

The new cluster is part of a broader initiative by the Saudi Authority for Industrial Cities and Technology Zones to establish specialized food industry hubs throughout the Kingdom. The project is expected to foster synergies across the value chain, including animal feed, food additives, packaging, and machinery manufacturing.

The Saudi Dairy Forum, hosted by the Al-Kharj Chamber in cooperation with the National Industrial Development Center, brought together industry leaders, policymakers, and agricultural stakeholders. It was held under the patronage of Riyadh Gov, Prince Faisal bin Bandar and attended by Al-Kharj Gov. Prince Fahd bin Mohammed bin Saad bin Abdulaziz.

As Saudi Arabia accelerates its push to diversify the economy and achieve food security, the Al-Kharj dairy cluster stands as a milestone in the Kingdom’s industrial and agricultural evolution.


PIF-owned AviLease secures $1.5bn credit facility to boost global expansion

Updated 24 April 2025
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PIF-owned AviLease secures $1.5bn credit facility to boost global expansion

RIYADH: Saudi-backed AviLease has closed a $1.5 billion unsecured revolving credit facility to support its international expansion and investment in next-generation, fuel-efficient aircraft. 

The conventional three-year facility was oversubscribed, attracting commitments from 20 global banks, including eight new lenders from Europe, Asia, and North America, the company said in a release.  

Owned by Saudi Arabia’s Public Investment Fund, AviLease is central to the Kingdom’s push to diversify its economy and develop a globally competitive aviation industry under its Vision 2030 strategy.  

Edward O’Byrne, CEO of AviLease, said: “We are pleased to close this facility, noting the strong international demand. Together with our existing revolver of $750 million, it brings our immediately‑available committed facilities to $2.25 billion, spanning 25 local and global lenders.”  

He added: “This enhanced liquidity positions us to continue our expansion, investing in latest‑technology, fuel‑efficient aircraft while maintaining the conservative financial policy that underpins our strategy.”  

Headquartered in Riyadh, the firm manages a fleet of 200 aircraft — largely composed of new-technology models — leased to 48 airline customers worldwide. 

Earlier this month, AviLease signed a memorandum of understanding with Turkish Airlines for the long-term lease of eight Airbus A320neo aircraft. Two aircraft have already been delivered, with the remainder scheduled for delivery throughout 2025. 

In March, the lessor delivered three A320neo aircraft to SDH Wings, a joint venture between AviLease and China’s sovereign wealth fund, in which the Kingdom holds a 10 percent stake. 

The firm is also investing in local talent development. Earlier this year, AviLease partnered with Prince Sultan University and Riyad Bank to deliver a specialized aviation financing course to more than 150 professionals. 

At the time, the company said the initiative aimed to equip Saudi talent to lead the Kingdom’s aviation finance sector and support the human capability development goals outlined in Vision 2030. 

AviLease also stated that it will continue to create local economic value and generate both direct and indirect employment opportunities for Saudi nationals across the aviation and financial services sectors. 

In October, AviLease expanded its fleet with the acquisition of nine aircraft from global lessor Avolon, building on a previous transaction in which it purchased 13 aircraft from the same company the year before.

The deal was followed by AviLease’s first transaction with BBAM, one of the world’s leading aircraft lessors, through which it acquired a Boeing 787-9. The acquisition marked the introduction of the 787-9 to AviLease’s operating lease portfolio and added a new airline customer based in the Americas, further diversifying the company’s global client base.