More funding needed for global land conservation, say experts at COP16

Princess Noura highlighted the persistent challenges in quantifying financial and capacity gaps for land restoration measures.
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Updated 07 December 2024
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More funding needed for global land conservation, say experts at COP16

  • Princess Noura bint Turki Al-Saud argues that land restoration can yield immense economic, social returns
  • ‘Nature economy’ can create $10tn in business, 395m jobs by 2030, says economist Tillem Burlace

RIYADH: Experts attending COP16 here have emphasized the need to allocate more funds for sectors critical to land conservation and nature restoration because of the potential for greater global economic development and job creation.

Climate financing has nearly doubled over the past decade, with spending at about $1.3 trillion over the period 2021 to 2022, said Tillem Burlace, regional lead at 1t.org, World Economic Forum.

Burlace, who was speaking to Arab News on the sidelines of COP16, which began on Dec. 2 and ends Dec. 11, said that funds were not being allocated efficiently.

She said most of this financing flowed to energy (44 percent) and transport (29 percent), which remain “key” to reaching net-zero goals. However, investments in agriculture, forestry, and other land use have lagged, receiving just 4 percent.

Burlace stressed that this imbalance poses a significant challenge to achieving land degradation neutrality and drought resilience, two critical goals central to the UN Convention to Combat Desertification agenda at COP16 and beyond.

She said that research by the WEF indicates that transitioning to a sustainable “nature economy” could unlock $10 trillion in business opportunities and create 395 million jobs by 2030.

“Every dollar invested in restoring degraded lands brings between $7 to $30 in economic returns,” she said.

Burlace added that innovative financing models are needed to help aggregate capital while minimizing risks.

Princess Noura bint Turki Al-Saud said that the UNCCD often operates with limited political backing, insufficient financing, and fragmented implementation.

Speaking during a panel session at COP16, Princess Noura, a founding partner at Aeon Strategy, emphasized the challenges facing the convention.

“To achieve the convention’s transformative potential, it must be elevated as a political priority, fully integrated into international development plans, and backed by substantial financial and technical commitments.”

Princess Noura highlighted the persistent challenges in quantifying financial and capacity gaps necessary to implement effective land-restoration measures.

“The financial-needs assessment reveals a significant gap (because) of the 63 National Drought Plans evaluated, only nine countries have quantified their financial needs,” she explained.

Princess Noura said that in terms of reporting resource needs under the UNCCD’s progress indicators, only 13 of 38 countries have expressed their requirements in financial terms.

This lack of financial data, she added, reflects broader difficulties in calculating the costs of restoration, capacity building, and governance measures.

Princess Noura argued that investing in land restoration yields immense returns. Research shows that every dollar spent on land restoration can generate up to $30 in returns, she said.

“This is driven by the critical role that healthy land ecosystems play in global development.”

Princess Noura pointed out that half of the world’s gross domestic product depends directly and indirectly on healthy soil ecosystems, which underpin agriculture, food systems, and economic stability.

“Investing in land restoration is not just an environmental imperative — it is an economic necessity,” she stressed.

Capacity building across the project cycle was crucial, but it should be accompanied by targeted financial and technical support, Princess Noura said.

Her remarks reflect the growing consensus at COP16 on the importance of integrating sustainability into global economic and development policies.

Nigel Topping, the UN Climate Change High-Level Champion from the COP26 Presidency, emphasized the importance of translating environmental and social needs into financial terms to mobilize meaningful action from key decision-makers.

“If we don’t translate hectares or people into financial numbers, then we will not get CEOs, ministers — particularly ministers of finance — and fund managers around the table,” Topping said.

He underscored the importance of broadening the scope of financial needs assessments. “In the climate space, we spent a very long time obsessing about a small part of the need — the multilateral finance need,” Topping said.

It turns out this is only about 4 percent of the total finance that needs to mobilize, he added.

“Having a needs assessment showing the whole amount is very important in terms of setting a normative target, which we can then go about problem-solving,” Topping said.

He said such assessments were not only important for setting clear targets but also aligning public and private sector efforts to address systemic challenges including land degradation, drought, and biodiversity loss.


Closing Bell: Saudi main index ends lower at 11,303 

Updated 21 May 2025
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Closing Bell: Saudi main index ends lower at 11,303 

  • MSCI Tadawul 30 Index lost 19.78 points to close at 1,441.01
  • Parallel market Nomu declined 110.94 points to end at 27,417.62

RIYADH: Saudi Arabia’s Tadawul All Share Index closed in the red on Wednesday, falling 134.5 points, or 1.18 percent, to settle at 11,303.68. 

The total trading turnover reached SR4.37 billion ($1.16 billion), with 37 stocks advancing and 206 declining. 

The MSCI Tadawul 30 Index also dropped, losing 19.78 points, or 1.35 percent, to close at 1,441.01. 

The Kingdom’s parallel market Nomu declined by 110.94 points, or 0.40 percent, to close at 27,417.62, with 26 stocks gaining and 49 retreating. 

The best-performing stock of the day was Saudi Arabia Refineries Co., rising 4.38 percent to SR69.10. 

Other top gainers included Perfect Presentation for Commercial Services Co., whose share price rose 3.37 percent to SR11.66, and SHL Finance Co., which gained 2.22 percent to SR20.30. 

The day’s largest decline was seen in National Gypsum Co., with its share price dipping 4.76 percent to SR20.4. 

ACWA Power Co. saw its shares drop 4.40 percent to SR274, while Al-Rajhi Co. for Cooperative Insurance declined 4.17 percent to SR115. 

On the announcements front, ACWA Power said it has received approval from the Capital Market Authority to proceed with a SR7.12 billion capital increase through a rights issue. 

The CMA’s decision, issued on May 20, allows the company to offer, register, and list rights issue shares — pending shareholder approval at an upcoming extraordinary general assembly. 

The rights issue was first disclosed on Dec. 19, when ACWA Power submitted its application to the CMA. 

Alinma Bank has successfully completed a $500 million issuance of dollar-denominated sustainable Additional Tier 1 capital certificates under its Tier 1 Capital Certificate Issuance Programme. 

The offering targets eligible investors in Saudi Arabia and internationally, with settlement expected on May 28. 

The issuance comprises 2,500 certificates, each with a par value of $200,000, offering an annual return of 6.5 percent. These perpetual instruments are callable after 5.5 years. 

The certificates will be listed on the International Securities Market of the London Stock Exchange and were offered exclusively under Regulation S of the US Securities Act of 1933. 

During Wednesday’s session, Alinma Bank shares rose 0.18 percent to close at SR27.50 on the main market. 

Flynas has set the final offer price for its initial public offering at SR80 per share following the successful completion of the institutional book-building process, which was oversubscribed by 99.8 times, according to a statement.

BSF Capital, Morgan Stanley Saudi Arabia, and Goldman Sachs Saudi Arabia, acting as joint financial advisors, co-underwriters, and joint bookrunners for the IPO, confirmed that institutional investors subscribed in full to the 51,255,568 ordinary shares allocated in the first phase, representing 100 percent of the total offered.

Following this, up to 20 percent of the total offering will be allocated to retail investors in the second phase of the IPO.

Saudi Fransi Capital, serving as lead manager, announced that all necessary arrangements have been completed with receiving agents to facilitate the individual subscription process, which will run for three days from May 28 until June 1 at 12:00 p.m.


Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

Updated 21 May 2025
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Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

  • Decision driven by how Swiss regulators handled 2023 government-backed rescue of Credit Suisse by UBS Group
  • PIF continues to expand footprint across Europe, signaling redirection of capital

RIYADH: Saudi Arabia’s Public Investment Fund will no longer allocate capital to Switzerland’s financial markets, two years after suffering losses from the collapse of Credit Suisse.

During the FII PRIORITY Europe Summit in Albania, PIF Gov. Yasir Al-Rumayyan said that the decision was driven by the manner in which Swiss regulators handled the 2023 government-backed rescue of Credit Suisse by UBS Group, reported Bloomberg.

The abrupt deal was executed without shareholders’ approval, impacting investors across the Middle East.

PIF, one of the world’s largest sovereign wealth funds, is reassessing its investment strategy amid growing concerns over regulatory stability and investor protection.

The fund’s decision to halt investments in Switzerland’s financial markets marks a significant shift in its approach, underscoring the long-term impact of the 2023 Credit Suisse collapse on regional and institutional investor confidence.

PIF also continues to expand its footprint across Europe, signaling a redirection of capital.

“We’re not going to invest in the financial markets in Switzerland. If you change something overnight and wipe out all of your investors, this is a big red flag,” Al-Rumayyan said, as reported by Bloomberg.

The remarks were made during an on-stage discussion with Noel Quinn, newly appointed chairman of Zurich-based Julius Baer Group Ltd.

Quinn responded: “As the chairman of a Swiss bank as of 10 days ago, that concerns me.”

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price.

The plunge became worse after the former chairman of the Saudi National Bank, Ammar Al-Khudairy, said the bank would “absolutely not” be open to further investments in Credit Suisse.

“The deal didn’t receive approval from either Credit Suisse or UBS shareholders as regulators and lawmakers rushed to contain a crisis of confidence that was spreading across global markets,” according to Bloomberg.

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price. Shutterstock

At the time, shareholders from the Middle East, including SNB and the Qatar Investment Authority, collectively held around 20 percent of Credit Suisse.

SNB, which was the largest shareholder in the Swiss lender, had called on Credit Suisse to reject the offer from UBS, Bloomberg reported.

Other investors had cautioned that the Swiss government’s decision to override standard merger procedures and sideline shareholder votes could deter institutional investors.

Legal analysts also warned that the rushed nature of the transaction had undermined Switzerland’s standing as a reliable investment destination where the rule of law is safeguarded.

Al-Rumayyan’s remarks came as PIF announced plans to open a subsidiary office in Paris and committed to doubling its investments in Europe to $170 billion by the beginning of the next decade.

The fund has already deployed approximately $85 billion across the region between 2017 and 2024, making strategic investments in key European economies, including the UK, France, and Italy.


Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

Updated 21 May 2025
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Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

  • Forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan
  • Bilateral meetings were held between company representatives from both countries

BISHKEK: Saudi Arabia and Kyrgyzstan, represented by the Saudi Chambers Federation and the Kyrgyz Chamber of Commerce and Industry, announced the signing of an agreement to establish a Saudi-Kyrgyz Joint Business Council — a significant step to advance economic cooperation between the two countries. 

The signing ceremony took place on the sidelines of the Saudi-Kyrgyz Business Forum held on May 21 in Bishkek, the Kyrgyz capital, in the presence of Kyrgyz Minister of Economy and Commerce Bakyt Sydykov, Saudi Chambers Federation Chairman Hassan bin Muajab Al-Huwaizi, and several ministers and officials from both nations, the Saudi Press Agency reported. 

The forum was also attended by Saudi-Kyrgyz Business Council Chairman Ahmed Al-Dakhil, Saudi Arabia’s Ambassador to Kyrgyzstan Ibrahim bin Radi Al-Radi, Kyrgyzstan’s Ambassador to Saudi Arabia Ulukbek Maripov, along with more than 100 investors. 

The chairman of the Saudi Chambers Federation emphasized that the establishment of the joint business council is the result of sustained efforts and mutual desire, providing an effective platform for Saudi and Kyrgyz businessmen to showcase and promote their activities and build commercial partnerships, amid vast opportunities for cooperation between the two countries. 

The joint business forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan across sectors including exports, healthcare, pharmaceuticals, banking, hydropower, agriculture, and technology. 

Bilateral meetings were also held between company representatives from both countries. 

Notably, the federation’s delegation visits to Kyrgyzstan included a series of meetings with government and private sector officials to discuss prospects for economic cooperation and explore investment opportunities. 


Saudi crude output hits 8.96m bpd in March: JODI data

Updated 21 May 2025
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Saudi crude output hits 8.96m bpd in March: JODI data

  • Crude exports fell by 12.11% month on month to 5.75 million bpd
  • Kingdom’s slight increase in crude production came amid a broader strategic pivot within OPEC+

RIYADH: Saudi Arabia’s crude oil production rose to 8.96 million barrels per day in March, reflecting a 0.11 percent monthly increase, according to the latest Joint Organizations Data Initiative data.

According to the database, crude exports fell by 12.11 percent month on month to 5.75 million bpd.

Refinery crude exports rose 10.3 percent during this period to 1.55 million bpd. The uptick was driven primarily by diesel shipments, which jumped 20.66 percent from the previous month to 806,000 bpd.

It also accounted for the largest share of refined product exports in March at 52 percent, followed by motor and aviation gasoline at 17 percent, and fuel oil at 12 percent.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase, with diesel comprising 42 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 15 percent.

Domestic demand for refined petroleum products increased by 223,000 bpd in March compared to the previous month, reaching 2.22 million bpd.

On an annual basis, demand rose by 5.07 percent, equivalent to 107,000 bpd.

The Kingdom’s slight increase in crude production across the month came amid a broader strategic pivot within OPEC+, which has agreed to significantly boost oil output starting in June. The alliance announced an additional 411,000 bpd increase for June, following a similar adjustment made for May.

This marks a continuation of the group’s recent efforts to accelerate the return of previously curtailed supply to the global market. The upcoming increase is expected to add further downward pressure on prices, which have already been trending lower due to ample inventories, modest international demand growth, and increasing non-OPEC output.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase. Shutterstock

Direct crude usage

Saudi Arabia’s direct crude oil burn rose to 383,000 bpd in March, reflecting a 35.3 percent increase from the previous month.

Direct crude burn refers to the use of unrefined crude oil for electricity generation, rather than for export or refining.

The increase came amid the seasonal ramp-up in cooling needs as temperatures begin to rise heading into the warmer months.

Although the Kingdom has made substantial progress in expanding its natural gas infrastructure to reduce reliance on direct crude burn, fluctuations still occur, particularly in transitional months like March, when energy demand begins to shift but supply systems have not fully ramped up.


Saudi Arabia launches BAE Systems Arabian Industries to localize defense manufacturing

Updated 21 May 2025
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Saudi Arabia launches BAE Systems Arabian Industries to localize defense manufacturing

  • Company results from the merger of two major players in the defense ecosystem
  • Merger was finalized nearly four months ago to consolidate operational strengths

JEDDAH: Defense manufacturing is set to advance in Saudi Arabia with the launch of BAE Systems Arabian Industries, a new entity aimed at accelerating localization and strengthening the Kingdom’s military industrial base. 

The company results from the merger of two major players in the defense ecosystem — BAE Systems Saudi Development and Training, which focuses on capability building, and the Saudi Maintenance and Supply Chain Management Co., a provider of supply chain and technical services, the Saudi Press Agency reported. 

The move marks further progress in the Kingdom’s push to expand its defense capabilities, with localization of military spending rising to 19.35 percent in 2024, up from just 4 percent in 2018. The Kingdom aims to surpass 50 percent by 2030, in line with Vision 2030’s goal of a self-sufficient defense sector. 

Ahmad Abdulaziz Al-Ohali, governor of the General Authority for Military Industries, speaks during the inauguration ceremony in Riyadh. X/@GAMI_KSA

Ahmad Abdulaziz Al-Ohali, governor of the General Authority for Military Industries, inaugurated BAE Systems Arabian Industries at an official ceremony held at the company’s new headquarters in Riyadh, attended by several officials and defense industry leaders. 

In a post on his X handle, the governor said: “This will enhance local content and open up broad horizons for national and international companies to contribute to building a solid and sustainable military-industrial system, to enhance local content in terms of human and technical cadres.” 

The merger was finalized nearly four months ago to consolidate operational strengths and leverage over three decades of experience in defense training, capability development, and logistics. 

Saudi Arabia continues its push to expand its defense capabilities, with localization of military spending. X/@GAMI_KSA

“He pointed out that the integration of national and global expertise within this unified entity reflects the confidence of major companies in the attractive investment environment provided by the authority in cooperation with its partners in both the public and private sectors,” the SPA report stated. 

Al-Ohali noted that the initiative would play a key role in transferring knowledge and building national expertise, supporting the Kingdom’s goal of localizing over 50 percent of military spending by 2030. 

He reaffirmed the authority’s support for initiatives that boost local content and create opportunities for both national and international companies to help build a strong and sustainable military-industrial sector. 

The inauguration of BAE Systems Arabian Industries marks a major step forward in enhancing local content and building national capabilities in the Saudi military industries sector. X/@GAMI_KSA

In a LinkedIn post, Abdulatif Al-Shaikh, the new company’s CEO, said: “We are guided by a clear vision to be the leading Saudi company in the defense sector by supporting and developing capabilities within the Kingdom and across the region, in alignment with Vision 2030.” 

In another development, Saudi Arabia recently completed production of its first locally manufactured components for the Terminal High Altitude Area Defense, or THAAD system launcher, in Jeddah.

This follows localization agreements signed during the 2024 World Defense Show and reflects increasing technical collaboration with global defense firms such as Lockheed Martin.