G20 Riyadh Summit Caps off Challenging 2020

A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
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G20 Riyadh Summit Caps off Challenging 2020

A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)

The 2020 G20 Riyadh summit will kick off on Saturday, bringing together the leaders of the world’s top economies. Saudi Arabia is hosting the event amid anticipation of its recommendations that should push forward the global recovery as the world grapples with the unprecedented novel coronavirus pandemic.

Amid the most challenging circumstances witnessed by any G20 summit, Custodian of the Two Holy Mosques King Salman bin Abdulaziz will inaugurate the two-day event, which will be held virtually due to the pandemic. He will deliver an opening speech before world leaders and organizations on Saturday.

This year’s summit carries more significance as the world is looking to the G20’s efforts in protecting lives and livelihoods and helping with the recovery after the pandemic. The G20 leaders will also address issues to pave the way to a more inclusive, more sustainable and more resilient economic recovery and laying the foundations for a better future. The aims of the Saudi G20 Presidency focus on Empowering People, Safeguarding the Planet and Shaping New Frontiers.

The Saudi G20 Presidency spared no effort in cultivating collective efforts during the challenging situation of 2020, read a G20 statement. “As a G20 member and the Chair of the 2020 G20, hosting this high-level meeting is historic for Saudi Arabia, showcasing the results of the ongoing transformational Saudi Vision 2030 reflected in its Presidency.”
Throughout the past 14 summits, the G20 has never encountered such exceptional and extraordinary circumstances that have been imposed by the pandemic and its impact on the global economy.

The crisis has put the Kingdom before a test that a G20 member state has never had to endure. Saudi Arabia succeeded in employing all of its political, economic and intellectual tools in confronting the pandemic and its repercussions on the world, especially in helping poor countries and coordinating fully with other G20 members.

King Salman had stressed that the group’s top priority was fighting the pandemic and its health, social and economic impacts. Protecting lives, jobs and livelihoods was at the top of the G20’s concerns.

These efforts should culminate in finding a vaccine for the coronavirus and ensuring that it is fairly distributed to everyone, he stressed, while underlining the needs of the world’s poorest countries.

When the pandemic first began, Saudi Arabia held a meeting for G20 health ministers back in April with the participation of the World Health Organization. The Kingdom kicked off its efforts to unite the global fight against the disease by calling for an extraordinary G20 summit in March.

Saudi Arabia has pledged $500 million to support global efforts to combat the pandemic. It said then it would allocate $150 million to the Coalition for Epidemic Preparedness and Innovation, $150 million to the Global Alliance for Vaccines and Immunizations, and $200 million to other health organizations and programs.

The pandemic has had a devastating effect on the global economy and oil market. Tourism was the first sector to be struck down.

Saudi Arabia was quick to take action to curb the impact of the crisis. On April 8, it held an extraordinary virtual meeting for G20 energy ministers to achieve stability in the energy markets. The ministers announced that they were determined to take the necessary measures to achieve this balance.

In January, OPEC, Russia and other producers, a group known as OPEC+, implemented a deal to cut output by 1.7 million bpd to support the market.



Saudi Energy Minister: Two Billion People Worldwide Suffer from Energy Shortages

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
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Saudi Energy Minister: Two Billion People Worldwide Suffer from Energy Shortages

Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 
Saudi Minister of Energy Prince Abdulaziz bin Salman (OPEC website) 

Saudi Energy Minister Prince Abdulaziz bin Salman has warned that the global energy transition must not come at the expense of economic growth and the cost of living. He highlighted that nearly two billion people around the world are currently facing energy shortages.

Speaking at the opening session of the 9th OPEC International Seminar in Vienna, the minister stressed that the path toward energy transition must be realistic and practical. He emphasized that this shift should not be viewed as a threat to oil producers, but rather as an opportunity for technological innovation.

Despite the growing use of renewable, nuclear, and hydrogen energy sources, Prince Abdulaziz maintained that oil and gas will remain essential and irreplaceable components of the global energy mix. He welcomed the fact that an increasing number of countries are adopting a more pragmatic view of the transition.

Also speaking at the seminar, UAE Energy Minister Suhail Al Mazrouei said on Wednesday that oil markets have been able to absorb OPEC+ production increases without a rise in inventories, indicating that global demand still requires more crude.

Al Mazrouei explained that the group is not concerned about oversupply and has seen no significant stockpile build-up, even after recent production hikes.

OPEC+, which supplies around half of the world’s oil, has been cutting production for several years to support market stability. However, the group recently began easing these cuts in response to rising global demand, particularly during the summer.

OPEC+ began unwinding its 2.17 million barrel-per-day production cut in April, increasing output by 138,000 barrels per day. That was followed by monthly hikes of 411,000 barrels per day in May, June, and July. On Saturday, the group approved a further increase of 548,000 barrels per day for August.

Al Mazrouei pointed out that the absence of a significant buildup in inventories despite these steady increases suggests that the market needed those barrels.

He added that stability - not just price - should be the focus, stressing that short-term thinking based solely on price is insufficient. He noted that oil prices must remain attractive enough to draw in new investments, warning that countries with large oil reserves still are not investing at the necessary levels.