IMF Welcomes Saudi Arabia’s Efforts to Become Global Leader in Green Hydrogen Production

NEOM hosts the largest hydrogen production plant in the world (NEOM Saudi Arabia website)
NEOM hosts the largest hydrogen production plant in the world (NEOM Saudi Arabia website)
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IMF Welcomes Saudi Arabia’s Efforts to Become Global Leader in Green Hydrogen Production

NEOM hosts the largest hydrogen production plant in the world (NEOM Saudi Arabia website)
NEOM hosts the largest hydrogen production plant in the world (NEOM Saudi Arabia website)

Saudi Arabia is witnessing remarkable activity in the hydrogen sector, which is considered the fuel of the future, in terms of production and export.

The country is investing in its great energy potential, to export clean energy to the world, and to contribute to achieving the global goals to reduce carbon emissions and reach carbon neutrality, in line with the Paris Climate Agreement.

While the Kingdom is working to enhance its hydrogen production, it has successfully accelerated its efforts in the field of climate action, as it seeks to convert 30 percent of its land and sea areas into natural reserves, and plant about 10 billion trees by 2030.

It is also working on implementing the circular carbon economy model, with the aim of fulfilling its pledges to reduce emissions by 278 million tons annually by 2030, and raising the share of renewable energy sources in the electricity mix to 50 percent.

With this initiative, Saudi Arabia has become a world leader in carbon capture and storage projects, with a storage capacity of up to 9 million tons annually, while it aims to store 44 million metric tons by 2035.

Earlier this month, International Monetary Fund experts welcomed the ongoing plans in the Kingdom to increase renewable energy capacity by an additional 2.1 GW by 2024, and deploy circular carbon economy technologies (including the use of carbon capture and storage), as well as transforming the country into a global hub for clean hydrogen production.

Experts also welcomed the road map drawn up by the Saudi authorities to reach net-zero emissions, as their analysis highlighted the government’s ability to achieve its targets with the least amount of GDP losses.

Fast pace towards clean energy

At the beginning of May, SABIC Agricultural Nutrients announced that it had sent the first commercial shipment of low-carbon ammonia to the Indian Farmers’ Cooperative Fertilizer Company Limited (IFFCO). Ammonia is produced from hydrogen.

Through this shipment of 5,000 metric tons, SABIC Agricultural Nutrients became the first company to introduce low-carbon ammonia to the Indian fertilizer sector.

In 2022, SABIC Agricultural Nutrients and Saudi Aramco obtained the world’s first independent certification for low-carbon ammonia production and clean hydrogen production from TUV Rheinland, a leading independent agency in systems testing, inspection and certification services, based in Germany.

On May 11, Prince Abdulaziz bin Salman, Saudi Minister of Energy, and Micky Adriaansens, Dutch Minister of Economic Affairs and Climate Policy, signed a memorandum of understanding to benefit from the clean energy exported by the Kingdom, especially green hydrogen.

On June 11, NEOM announced the construction of 3 stations within the largest green hydrogen plant in the world. The green hydrogen project in the city of NEOM would reduce carbon dioxide emissions at a rate of three million tons annually, which is equivalent to the pollutants produced by 700,000 cars.

On July 20, the Saudi Public Investment Fund signed a non-binding memorandum of understanding with the Japanese company JERA, to drive cooperation between the two parties and explore opportunities for the development of green hydrogen projects and derivatives.

The PIF had previously signed an MoU with ENGIE to develop green hydrogen projects and derivatives in the Kingdom.

On August 31, a Saudi researcher registered a global patent in the clean hydrogen production sector, which contributes to reducing the cost of production by a large percentage, making production in Saudi Arabia the most efficient and least expensive in the world.

The patent was registered to Dr. Engineer Abdel-Rahman Abdelal, who works as Executive General Manager of Business Development and Head of Green Hydrogen Project Development at Saudi ACWA Power, and an expert in open innovation at the United States Patent and Trademark Office (USTPO).

During the past year, the Kingdom succeeded in accelerating its efforts in the field of climate action, as it seeks to achieve ambitious goals by 2030, which include converting 30 percent of its land and sea areas into natural reserves, and planting more than 600 million trees.

The Kingdom has adopted the circular carbon economy model with the aim of achieving its pledges to reduce emissions by 278 million tons annually, and to raise the share of renewable energy sources in the electricity mix to 50 percent by 2030.



UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.


World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).


Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
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Visa Relocates European Headquarters to London's Canary Wharf

FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo
FILE PHOTO: A drone view of London's Canary Wharf financial district, two days before the government presents its critical pre-election budget, in London, Britain March 3, 2024. REUTERS/Yann Tessier/File Photo

Visa is relocating its European headquarters to London's Canary Wharf financial district, the Canary Wharf Group said on Friday.

The firm is leasing 300,000 square feet on a 15-year term at One Canada Square, and is set to relocate from Paddington in the summer of 2028, the group added.

Canary Wharf Group, which runs the wider financial district and is co-owned by QIA and Canada's Brookfield, was hit hard by the pandemic-induced fall in office demand.

The area is now enjoying a rebound as more firms push staff to return to office, Reuters reported.

"Canary Wharf continues to attract a diverse range of global businesses. We are delighted to welcome Visa who have chosen the Wharf for their European headquarters as the best location to support their business growth," Shobi Khan, Canary Wharf Group CEO, said.

JPMorgan Chase last week unveiled a plan to build a tower in the Canary Wharf financial district that will contribute 9.9 billion pounds ($13.2 billion) over six years to the local economy - including the cost of construction - and create 7,800 jobs.

Qatar's sovereign wealth fund is revising plans for a revamp of its HSBC skyscraper in the east London district to retain more office space, Reuters reported in November.