Saudi Arabia, Japan, Launch Initiative to Cooperate in Clean Energy

Prince Mohammed bin Salman, Crown Prince and Prime Minister, receives Japanese Prime Minister Fumio Kishida in Jeddah. (SPA)
Prince Mohammed bin Salman, Crown Prince and Prime Minister, receives Japanese Prime Minister Fumio Kishida in Jeddah. (SPA)
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Saudi Arabia, Japan, Launch Initiative to Cooperate in Clean Energy

Prince Mohammed bin Salman, Crown Prince and Prime Minister, receives Japanese Prime Minister Fumio Kishida in Jeddah. (SPA)
Prince Mohammed bin Salman, Crown Prince and Prime Minister, receives Japanese Prime Minister Fumio Kishida in Jeddah. (SPA)

Saudi Arabia and Japan announced the establishment of the Manar initiative for cooperation in the field of clean energy.

The initiative seeks to align the aspirations of both countries in the field of clean energy and foster sustainable advanced materials, as well as ensure the flexibility and security of supply chains.

Saudi Arabia and Japan signed 26 agreements in several fields, on the sidelines of the visit of Japanese Prime Minister Fumio Kishida to the Kingdom.

A joint statement issued at the conclusion of the visit reiterated the Kingdom’s ambitions to reduce carbon emissions and reach zero neutrality, benefiting from its strategic location on the global energy routes.

The statement also highlighted Japan’s endeavor to achieve zero neutrality, as a world leader in clean energy technology solutions.

The Manar initiative aims to highlight the leadership of Saudi Arabia and Japan in clean energy projects and sustainable advanced materials, in addition to ensuring the flexibility of supply chains. This initiative will reinforce Saudi Arabia's ongoing efforts to become a hub for clean energy, mineral resources, and energy component supply chains.

The initiative features a range of projects that drive the transition to clean energy, focusing on areas such as hydrogen and ammonia technologies, synthetic fuels, circular carbon economy and carbon recycling, direct air carbon (DAC) capture, and critical minerals essential for achieving resilience.

The two sides have affirmed their cooperation in promoting clean energy supply chains and mineral resources, by joining capabilities and common aspirations, and strengthening cooperation between companies and entities in both countries, to contribute to the expansion of the clean energy market, reduce costs and increase the flexibility of supply chains.



Saudi Private Sector Exports Financed by Banks Grow 21.1%

The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
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Saudi Private Sector Exports Financed by Banks Grow 21.1%

The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)
The Jeddah Islamic Port west of Saudi Arabia (Saudi Ports Authority)

The value of Saudi private sector exports financed by commercial banks through documentary credits (both settled and open) grew by 21.1% year-on-year, reaching SAR 40.4 billion ($10.8 billion) in the third quarter of 2024. This represents an increase of over SAR 7 billion ($1.9 billion) compared to SAR 33.3 billion ($8.9 billion) in the same period in 2023.

According to the Saudi Central Bank’s October statistical bulletin, the Gulf Cooperation Council (GCC) emerged as the leading importer by value, accounting for SAR 26 billion ($7 billion), which represents 64% of total exports. Arab countries followed, importing goods worth SAR 7.7 billion ($2 billion), or 19.1% of the total.

On a quarterly basis, exports financed through documentary credits grew by 35%, rising by more than SAR 10 billion ($2.7 billion) compared to SAR 30 billion ($8 billion) in the second quarter of this year.

The composition of exports showed that “other industrial products” accounted for 79% of the total value of documentary credits, amounting to SAR 31.9 billion ($8.5 billion). Exports of “chemical and plastic materials” made up 19% of the total, valued at SAR 7.6 billion ($2 billion), while “agricultural and livestock products” contributed 2.3%, exceeding SAR 911 million ($243 million).

The Saudi Central Bank’s October bulletin also highlighted a decline in total assets, which stood at SAR 1.8 trillion ($477 billion), down by SAR 80.3 billion ($21.4 billion) compared to September. However, on a year-on-year basis, total assets rose by SAR 27.5 billion ($7.3 billion) compared to October 2023.

The Central Bank’s investments in foreign securities increased by 3% in October, surpassing SAR 1 trillion ($266 billion), compared to SAR 986.8 billion ($262 billion) during the same period last year.

The total reserve assets of the Central Bank grew by 2.19% year-on-year, reaching SAR 1.63 trillion ($433.8 billion) by the end of October, compared to SAR 1.59 trillion ($423 billion) in October 2023. However, reserve assets dropped by 4.7% month-on-month, falling from SAR 1.71 trillion ($455 billion) in September.

Saudi Arabia’s reserve assets include investments in foreign securities, foreign currency deposits, reserves with the International Monetary Fund, Special Drawing Rights, and monetary gold.