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How Ƶ is reshaping transportation infrastructure amid climate change challenges

A 2022 report by the King Abdullah Petroleum Studies and Research Center, titled ‘Mitigating Transportation Emissions in Ƶ,’ revealed that the transportation sector accounts for 33.33 percent of global energy consumption. (SPA)
A 2022 report by the King Abdullah Petroleum Studies and Research Center, titled ‘Mitigating Transportation Emissions in Ƶ,’ revealed that the transportation sector accounts for 33.33 percent of global energy consumption. (SPA)
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Updated 20 January 2024

How Ƶ is reshaping transportation infrastructure amid climate change challenges

How Ƶ is reshaping transportation infrastructure amid climate change challenges
  • Strategically positioned between Europe and Asia, Ƶ boasts an extensive network of operational facilities

RIYADH: In the face of escalating climate change challenges, Ƶ is spearheading a transformation of its transportation sector with a series of groundbreaking initiatives.

As the Middle East and North Africa region grapples with surging population growth, rapid urbanization, and a burgeoning middle class, the strain on existing infrastructure and transportation networks has reached critical levels.

In response, Ƶ is not only addressing these challenges head-on but also setting a compelling example for the world.




A 2022 report by the King Abdullah Petroleum Studies and Research Center, titled ‘Mitigating Transportation Emissions in Ƶ,’ revealed that the transportation sector accounts for 33.33 percent of global energy consumption. (SPA)

According to the World Bank’s 2020 findings, the region requires annual investments of at least $100 billion for the next five to ten years. These investments are essential to sustain existing infrastructure and address sector bottlenecks.

Ƶ, strategically positioned between Europe and Asia and playing a central role in the global energy market, boasts an extensive network of operational facilities.

A 2022 report by the King Abdullah Petroleum Studies and Research Center, titled “Mitigating Transportation Emissions in Ƶ,” revealed that the transportation sector accounts for 33.33 percent of global energy consumption, ranking second only to the industrial sector.

FASTFACT

$100bn

According to the World Bank’s 2020 findings, the region requires annual investments of at least $100 billion for the next five to ten years. These investments are essential to sustain existing infrastructure and address sector bottlenecks.

Despite this, ongoing price controls and efficiency improvements aim to reduce the Kingdom’s annual transport emissions growth rate from 7 percent historically to 3 percent by 2030.

By 2030, carbon dioxide emissions from transportation are projected to reach 184 million tons.

Ƶ is actively pursuing three major policy interventions, as outlined in a 2022 report by the Saudi Ports Authority, also known as Mawani, titled “Enabling Growth and Innovation Across the Saudi Maritime Sector.”




Abdulla Elyas, Co-founder of Careem

The first initiative focuses on transitioning new car sales to electric vehicles, with a goal of having these make up 30 percent of all automobiles in Riyadh by 2030.

The second policy centers on electrifying public transport vehicles, while the third employs incentive programs to steer consumers toward sustainable alternatives to private cars.

Ƶ is building larger and more sustainable transport networks that will help reduce congestion and emissions.

Abdulla Elyas, Co-founder of Careem

Over the years, Ƶ has taken major steps toward diminishing emissions and rationalizing energy demand.

Since 2015, the Kingdom has implemented domestic energy price reform as well as fiscal reform under the Fiscal Balance Program, the Mawani report revealed.

This works on making energy consumption more sustainable while boosting government revenues by raising energy prices, evident by the gradual surge in fuel prices in the country.

ENOWA, a subsidiary company of NEOM responsible for managing the giga-project’s sustainable energy and water systems, offers one demonstration of how Ƶ is choosing to partner with nature in an attempt to boost its environmental practices.

“By harnessing the abundant sun and wind resources within NEOM, coupled with innovative storage solutions and smart grid technologies, ENOWA aims to scale energy generation in NEOM and spearhead the global supply of competitively priced power, reconfiguring the energy landscape prioritizing sustainability and affordability.” ENOWA CEO Peter Terium told Arab News.

ENOWA plays a fundamental role in infrastructure development in the Kingdom.




Peter Terium، ENOWA CEO

The company aspires to shape a sustainable and efficient energy landscape that significantly impacts all sectors of the economy including transportation, construction, and industrial manufacturing as well as water and waste treatment.

Meanwhile, the planned city of NEOM serves as a prime example of the Kingdom’s commitment to transforming transportation, mobility, and infrastructure to address climate change concerns.

ENOWA aims to scale energy generation in NEOM and spearhead the global supply of competitively priced power, reconfiguring the energy landscape prioritizing sustainability and affordability.

Peter Terium, ENOWA CEO

NEOM Mobility is revolutionizing the way individuals connect and travel by transforming the planned city into a sustainable, shared, and seamless experience via air, land, and sea.

Another activity that is gaining popularity in the Kingdom with regards to transportation while taking into consideration climate change is ride-hailing.

The two companies active in this area in Ƶ are Careem and Uber, with the former launching in 2013 before expanding to reach 26 cities across the Kingdom.

“Ƶ is building larger and more sustainable transport networks that will help reduce congestion and emissions,” co-founder of Careem Abdulla Elyas told Arab News.

Careem is helping to connect these networks through ride-hailing and micro mobility, Elyas explained.

He added: “Today, Saudi residents and visitors use Careem for a reliable, convenient, and stress-free everyday commute in and around their cities.”

When talking about future plans that are hinged on being eco-friendly and green, Elyas revealed the company’s Careem Bike launch.

“Launching Careem Bike in Madinah in partnership with ALMQR Development Co. is the next chapter of our journey to enhance mobility,” Elyas disclosed.

“We’re proud to support Saudi’s agenda for sustainability and the Vision 2030 goal of elevating quality of life in the Kingdom,” he added.

According to the co-founder, the docked bike stations in Madinah can be accessed with just a click of a button and are well connected to public transport and key landmarks.

“The Madinah Municipality has built 70 km of bicycle paths along main roads and inside residential neighborhoods,” he stressed.

Elyas further noted: “Careem Bike is a great option for first-mile and last mile connectivity - for example traveling from a train or bus station to one’s home or offices.”

Bikes can also be used for longer trips, and this is the benefit of having a large network of stations across a city, he clarified.

"Cycling is a great source of exercise and leisure for families and friends. We can already see how much people in Saudi enjoy spending time cycling and we’re excited to help encourage even healthier, more active lifestyles through our new network in Madinah,” Elyas highlighted.

“The service is inclusive and accessible for all. Customers can purchase a pass for their preferred use – daily, weekly, monthly, or yearly. Each pass offers unlimited 45-minute access,” he underlined.

Ƶ’s sustainable transport plans are a vital part of the Kingdom’s drive to reduce global carbon emissions by 4 percent, said a government official speaking at the Global Sustainable Transport Forum held in Beijing from Sept. 25-26 2023.

At the time, the Saudi Transport and Logistics Services Minister, Saleh bin Nasser Al-Jasser, stressed that sustainability is a fundamental element of the Kingdom’s Vision 2030.

Al-Jasser underscored during his speech that the Kingdom’s strong commitment to sustainability has been smoothly incorporated into the National Strategy for Transport and Logistics.

The plan includes reducing carbon emissions per person by 2 percent in a year, increasing sustainable mobility, electrifying transport and implementing them across the logistics value chain.

It also includes developing the necessary infrastructure to meet future demand, with the primary goal of minimizing traffic fatalities, the minister added at the time.

Under the ambitious Saudi Vision 2030 reforms, in conjunction with the National Transformation Program and the National Industrial Development and Logistics Program, the government is poised to inject $133.3 billion into the development of vital infrastructure, including ports, airports, and railways, all the way through to 2030.

This substantial financial commitment underscores Ƶ’s dedication to reducing carbon emissions, with a strong focus on environmental responsibility as it brings these transformative projects to fruition.


NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
Updated 12 November 2024

NEOM board of directors announces leadership change

NEOM board of directors announces leadership change
  • Head of Public Investment Fund’s Local Real Estate Division since 2018,Al-Mudaifer has a deep and strategic understanding of NEOM and its projects

NEOM: The NEOM Board of Directors on Tuesday announced the appointment of Aiman Al-Mudaifer as acting CEO of the company. Al-Mudaifer assumes leadership of NEOM, following Nadhmi Al-Nasr’s departure.

As NEOM enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.

Al-Mudaifer takes the helm of the organization with the support of a strong leadership team across NEOM’s regions, sectors and departments.

Head of Public Investment Fund’s Local Real Estate Division since 2018, Al-Mudaifer has a deep and strategic understanding of NEOM and its projects.

In his role at PIF, Al-Mudaifer oversees all local real estate investments and infrastructure projects. He is also a board member of multiple prominent companies within the Kingdom.

NEOM is a fundamental pillar of Saudi Vision 2030 and progress continues on all operations as planned, as we deliver the next phase of our vast portfolio of projects including THE LINE, Oxagon, Trojena, Magna and The Islands of NEOM. 

Through these projects, NEOM seeks to achieve harmony between livability, business and nature, and to create a better future for current and future generations.


Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
Updated 17 min 12 sec ago

Maldives, Bulgaria push for greater climate action, financing

Maldives, Bulgaria push for greater climate action, financing
  • Maldives President Mohamed Muizzu said small island developing states require trillions of dollars in climate finance
  • Bulgarian President Rumen Radev addressed the global impact of climate-related disasters

RIYADH: Insufficient financing continues to be a significant barrier preventing many countries, especially underdeveloped nations, from meeting their climate goals, according to the President of the Maldives.

Speaking on the second day of COP29, held in Azerbaijan from Nov. 11-22, Mohamed Muizzu emphasized that small island developing states require trillions, not billions, of dollars in climate finance.

“It is the lack of finance that inhibits our ambitions, which is why this COP, the finance COP, we need to deliver the new climate finance goal. This must reflect the true scale of the climate crisis. The need is in trillions, not billions,” Muizzu said.

He added, “It must consider the special circumstances of small island developing states — it must include adaptation, mitigation, and loss and damage.”

Muizzu also reiterated the importance of the environment for his country, stating: “You have called for stronger climate action. Our call has not changed. Our cause has not strayed because, for us, the environment and the ocean are more than resources. They are our cultural identity.”

In a similar vein, Bulgarian President Rumen Radev addressed the global impact of climate-related disasters, emphasizing that no region is immune to the deadly and costly consequences of climate change.

“Bulgaria is committed not only to being part of regional and energy cooperation initiatives across Central and Eastern Europe, the Balkans, and the Black Sea region but also beyond, by strengthening the links between the European Union and non-EU countries who share our priorities on climate neutrality, just energy transition, energy security, and low-carbon technological innovation,” Radev said.

He further called for broader action, stating, “All parties should undertake greater efforts to integrate climate change adaptation and resilience into all policies and strategies.”


Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048
Updated 16 min 16 sec ago

Closing Bell: Saudi main index slips to 12,048

Closing Bell: Saudi main index slips to 12,048
  • Parallel market saw a drop, losing 50.59 points to close at 29,110.41
  • MSCI Tadawul Index shed 5.06 points to end at 1,516.14

RIYADH: Ƶ’s Tadawul All Share Index fell on Tuesday, losing 58.74 points to close at 12,047.67.

The total trading turnover of the benchmark index was SR5.75 billion ($1.53 billion), with 70 stocks advancing and 152 declining.

Ƶ’s parallel market saw a drop, losing 50.59 points to close at 29,110.41. The MSCI Tadawul Index also declined, shedding 5.06 points to end at 1,516.14.

The best-performing stock on the main market was Al Jouf Cement Co., with a 4.75 percent increase to SR10.58. Other top gainers included Malath Cooperative Insurance Co. and Elm Co., with shares rising by 4.40 percent to SR15.66 and 3.87 percent to SR1,101.1, respectively.

The worst performer on the main index was Fawaz Abdulaziz Alhokair Co., whose share price dropped by 4.42 percent to SR12.12.

National Environmental Recycling Co., also known as Tadweer, announced it had signed a memorandum of understanding with Re Sustainability Middle East Co. to explore the potential for establishing smelters and recycling units in the Kingdom. According to a statement on Tadawul, the deal is valid for one year and carries no immediate financial impact.

The company’s share price declined by 0.45 percent to SR13.4. 

Purity for Information Technology Co. announced it has secured a contract valued at SR10.7 million from Saudi Comprehensive Technical and Security Control Co. to supply technology equipment. The company stated that the financial impact of the contract will be reflected in the first quarter of next year.

Its share price dropped by 0.73 percent to SR8.33.

Red Sea International Co. reported a narrowed net loss of SR2.18 million for the first nine months of this year, compared to a SR54.7 million loss in the same period in 2023. According to a statement on Tadawul, the improvement was driven by a 515.78 percent year-on-year increase in sales revenue. However, Red Sea International’s share price declined by 4.05 percent to SR71.

Lazurde Co. for Jewelry reported a 42.98 percent decline in net profit for the first nine months, totaling SR24.8 million, compared to the same period last year. The company attributed this drop to a 6.61 percent year-on-year decrease in operating profit over the nine-month period. Lazurde’s share price dropped by 2.05 percent to SR13.36.


UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
Updated 12 November 2024

UN climate chief urges aggressive action as emissions hit GDP

UN climate chief urges aggressive action as emissions hit GDP
  • UN official warned that worsening climate impacts will ‘put inflation on steroids’ unless every country takes bolder climate action
  • Simon Stiell called on governments to leave COP29 with a clear global climate finance plan

RIYADH: The global climate crisis is rapidly evolving into an economic threat, with the impact of emissions reducing the gross domestic product of several countries by up to 5 percent, a UN official said. 

Speaking at the high-level segment for heads of state and government at the COP29 in Baku, Simon Stiell, executive secretary of the UN Framework Convention on Climate Change, emphasized the urgent need for more aggressive climate actions to address economic challenges, including rising inflation. 

“We used to talk about climate action as being mostly about saving future generations. But there has been a seismic shift in the global climate crisis, as the climate crisis is fast becoming an economy killer,” said Stiell. 

He added, “In this political cycle, climate impacts are curving up to 5 percent off GDP in many countries. The climate crisis is a cost-of-living crisis, as climate disasters are driving up costs for households and businesses.” 

Stiell’s comments came shortly after a report by finance consultancy Oxera, which revealed that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade, with the US being the most affected. 

The UN official warned that worsening climate impacts will “put inflation on steroids” unless every country takes bolder climate action. 

Stiell urged the world to learn from the COVID-19 pandemic, highlighting the economic suffering caused by slow and ineffective collective action on supply chain issues. 

Describing climate finance as “global inflation insurance,” he warned that failing to address the economic toll of climate change would lead to disaster. 

“Letting this issue languish halfway down cabinet agendas is a recipe for disaster,” he said. 

However, Stiell remained optimistic, asserting that effective climate action could save economies and create new economic opportunities. He pointed to the growth of renewable energy as a potential driver of stronger financial states for nations. 

“This isn’t just about saving your economies and people,” he said. “Bolder climate action can drive economic opportunity. Cheap, clean energy can be the bedrock of your economies. It means more jobs, growth, less pollution choking cities, healthier citizens, and stronger businesses.” 

Stiell called on governments to leave COP29 with a clear global climate finance plan and urged international cooperation as the key to combating global warming and ensuring humanity’s survival. 

“We need your direct engagement on new national climate targets and plans — NDCs — so that all of you can benefit from the boom in clean energy and climate resilience,” said Stiell. 

He added: “These are not easy times, but despair is not a strategy, nor is it warranted. Our process is strong, and it will endure. After all, international cooperation is the only way humanity can survive global warming.” 


OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
Updated 12 November 2024

OPEC revises down global oil demand growth forecasts for 2024, 2025

OPEC revises down global oil demand growth forecasts for 2024, 2025
  • OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month

LONDON: The Organization of the Petroleum Exporting Countries has again downgraded its global oil demand growth projections for both 2024 and 2025, marking the fourth consecutive reduction.

The revision, announced on Tuesday, underscores weaker demand expectations for key regions such as China, India, and other parts of the world.

The updated forecast highlights the ongoing challenges faced by OPEC+, the broader alliance that includes OPEC members and partners like Russia. Earlier this month, OPEC+ delayed plans to increase oil output starting in December, citing concerns over falling oil prices.

In its latest monthly report, OPEC revised its 2024 global oil demand growth estimate to 1.82 million barrels per day, down from 1.93 million bpd forecast last month. This marks the first revision to the outlook since it was initially set in July 2023.

China was the primary driver of the downward revision. OPEC reduced its forecast for Chinese oil demand growth to 450,000 bpd, down from 580,000 bpd, noting that diesel consumption in September dropped year on year for the seventh consecutive month. OPEC attributed this decline to a slowdown in construction and weak manufacturing activity, as well as the rising use of LNG-fueled trucks in China.

The weaker outlook weighed on oil prices, with Brent crude trading below $73 per barrel following the release of the report.

The demand outlook for 2024 remains uncertain, with significant differences among forecasters regarding the strength of global demand growth, particularly concerning China’s recovery and the pace at which the world transitions to cleaner fuels.

In addition to the 2024 revision, OPEC also lowered its forecast for global oil demand growth in 2025 to 1.54 million bpd, down from the previous estimate of 1.64 million bpd.