Saudi Arabia to Activate the Arab Common Market for Electricity

A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh (Reuters)
A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh (Reuters)
TT

Saudi Arabia to Activate the Arab Common Market for Electricity

A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh (Reuters)
A general view of power plant number 10 at Saudi Electricity Company's Central Operation Area, south of Riyadh (Reuters)

The Saudi Cabinet, chaired by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz, approved the draft general agreement to establish the Arab common market for electricity, authorizing the Minister of Energy or his deputy to sign it.

The approval is a step towards activating the project, which is close to operating, after completing most of its technical details.

Arab countries look forward to implementing the project to achieve energy integration and remove obstacles and challenges that prevent access to a trade market for electricity.

They aim to achieve many technical, economic, environmental, social, and political benefits.

- The Arab Common Market for Electricity

According to information issued earlier, the project will improve the reliability of electric power systems economically, enhance operating efficiency, and reduce the fixed reserve ratios for emergency response in the electrical networks for each system separately.

It also aims to increase the dynamic stability of the electrical network and reduce the cost of generating a power unit—electricity, due to direct savings in capital investments resulting from postponing the establishment of new production stations.

The deal will also achieve financial revenues for the transit countries where the electrical interconnection lines pass. It will help utilize all available energy sources, especially renewable energies, reduce emissions, and exchange technical, financial, and legal experiences.

- The efficiency of surplus electricity

Economic professor at King Faisal University, Mohammed al-Qahtani, indicated that the project would raise the spending efficiency on electricity surpluses and ensure their financial benefit.

Qahtani told Asharq Al-Awsat that the project would help accelerate the development in Arab countries that suffer from power shortages, adding that it would activate the economic unity between the states, including the inter-trade exchange.

The expert pointed out that some Arab countries that suffer from power outages will benefit from the surpluses in other countries, which will meet their development needs and provide soft loans for electricity.

It will also achieve economic revenues for other countries with electric surpluses, leading to a common market that will benefit all parties.

- The Role of Saudi Arabia

Qahtani stated that Saudi Arabia, due to its pivotal economic and central role in the Middle East, will be one of the most critical countries in linking electrical surpluses between the Gulf countries rich in excesses and the rest of the Arab countries.

He noted that such projects that the Saudi government constantly announces confirm the Kingdom's progress following Vision 2030 towards boosting its role and economic local, regional, and international position.

- The Arab Common Market for Electricity Agreement

It is a document detailing the obligations specified in the Memorandum of Understanding and the General Agreement and covers the commercial aspects of the market.

It determines the roles and responsibilities of each party, defines services and procedures for that, and calculates electricity quantities.

- Consumption

According to recent studies, the growth rates of electric energy use in Arab countries vary according to the nature of use and the availability of energy sources in each country.

Statistics indicate a 36 percent increase in the average per capita electricity consumption in 2017, bringing the average share of the Arab citizen to 3,000 kilowatt-hours.

The Arab demand for electric energy increased 6.2 percent on average between 2000 and 2010, reaching 655.8 TWh in 2010, while the demand for electric power rose 19.4 percent between 2010 and 2014, reaching about 1166.4 terawatts per hour.

Demand is expected to rise to 1,639 terawatts per hour in 2023 and 2029 terawatts per hour until 2028, according to the Arab Union of Electricity (AUE).



Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)
TT

Saudi Arabia to Host World Investment Conference on November 25-27

A general view of Riyadh, Saudi Arabia. (SPA)
A general view of Riyadh, Saudi Arabia. (SPA)

Under the patronage of Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, the World Association of Investment Promotion Agencies (WAIPA) and Invest Saudi will hold the 28th annual World Investment Conference (WIC) in Riyadh from November 25 to 27.

The event will gather global leaders in investment, government, and international organizations to tackle the theme “Harnessing Digital Transformation and Sustainable Growth: Scaling Investment Opportunities”.

On the occasion, Saudi Minister of Investment Khalid Al-Falih said: “Under the wise leadership of Custodian of the Two Holy Mosques King Salaman bin Abdulaziz Al Saud and Crown Prince Mohammed, the Kingdom, driven by its ambitious Vision 2030, has become a premier world investment destination and is experiencing unprecedented growth in overall investment amounts and diversity.”

This year’s World Investment Conference in Riyadh “will be a platform for sharing our nation’s strategic vision with our partners, and an invaluable opportunity to highlight our status as a trusted partner for sustainable economic growth,” he added.

“We look forward to welcoming investment leaders from around the world to forge partnerships that will benefit both the Kingdom and global economies,” he stressed.

Vision 2030 has driven significant economic reforms in Saudi Arabia, attracting substantial foreign investment. Over 28,900 foreign investment licenses have been issued, reflecting the Kingdom's transformation into a major global investment hub.

Key factors contributing to this growth include 100% foreign ownership in specific sectors, streamlined commercial register procedures, simplified visa issuance, and other investor-friendly initiatives that have created a favorable and appealing environment for investors in various sectors, including renewable energy, logistics services, and AI.

The Kingdom's attractive investment landscape has also facilitated the development of a dynamic economy that leads in innovation and growth.

WAIPA Executive Director and CEO Ismail Ersahin said: “WAIPA is excited to bring the 28th WIC to Riyadh, a city that perfectly embodies the future of investment. The conference will provide a crucial platform for Investment Promotion Agencies and investors to discuss emerging opportunities in a rapidly evolving global landscape.”

“We deeply appreciate Saudi Arabia’s vision and leadership, which will ensure that this edition of WIC is an impactful gathering for all participants,” he remarked.

Key highlights of this year’s WIC are a range of conference tracks, such as high-level dialogues with government ministers, insightful sessions on technology, sustainability, and economic cooperation, as well as practical masterclasses for investment professionals, a dedicated entrepreneurship track that will emphasize the transformative role of startups and innovators, and exclusive matchmaking sessions that will facilitate strategic partnerships between investors, SMEs, and potential collaborators.

Participants will also have the opportunity to celebrate the achievements of Investment Promotion Agencies on the Awards Track, honoring innovation and excellence in investment facilitation.

This year’s WIC promises to be a pivotal forum as it aligns with global investment drivers: the disruptive influence of technology and AI, global supply chain resilience, energy transition toward sustainability, and the transformative role of entrepreneurs and startups in reshaping investment landscapes traditionally led by multinational corporations.

Leaders and stakeholders will discuss and explore how these factors are redefining economies and driving forward-looking investment models worldwide.

With its focus on scaling investment opportunities, WIC is designed to equip attendees with the tools, knowledge, and connections necessary to drive meaningful economic impact.