London, Riyadh to Ensure Sustainable Solutions Meeting Global Energy Needs

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
TT

London, Riyadh to Ensure Sustainable Solutions Meeting Global Energy Needs

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters
UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters

A British diplomat stressed that her country would work closely with Saudi Arabia as one of the strategic partners to ensure sustainable solutions that meet global energy needs and protect the world for the future.

UK Deputy Ambassador to the Kingdom of Saudi Arabia Anna Walters affirmed that SABIC's recent announcement of an investment of £850 million in decarbonization operations in north-east England, and Saudi Alfanar's commitment to invest £1 billion in the UK to convert waste into clean aviation fuel, are typical examples of this approach.

On the repercussions of the Ukrainian crisis, Walters stressed that her country does not depend on Russian natural gas, which constitutes less than 4% of British supplies.

The UK is exploring options to end this matter completely, revealed Walters, adding that her country plans to work on developing a long-term energy strategy that promotes the Kingdom as a leading global center in terms of technology and green finance.

Walters told Asharq Al-Awsat that the relationship between the UK and Saudi Arabia is of great importance as it covers a wide range of economic and national security interests that are based on a long-term bilateral relationship that is established on a number of pillars including security, energy, trade and defense.

“We share national security and prosperity interests bilaterally and, in the region, more broadly,” said Walters.

“Our partnership continues to grow, as the Kingdom of Saudi Arabia embarks on rapid social and economic change within the framework of (Vision 2030) with many new areas of cooperation, including sports, entertainment, and culture,” she added.

“We are well-positioned to work together in these areas, and we have high aspirations for the future,” affirmed the diplomat.

According to Walters, the invasion of Ukraine poses a threat to the economic recovery in Europe and the rest of the world following the coronavirus pandemic.

She warned that Russia’s war on the Eastern European country will exacerbate an already high level of global inflation and place pressure on supply chains.

Walters added that the Ukraine crisis had significantly increased the cost of living, noting that the measures taken by Europe and the UK to punish Russian President Vladimir Putin’s regime do not come for free.

But the risks of not taking firm action against an invasion of this caliber will be much greater, explained Walters, stressing that NATO will re-evaluate its position to deter and defend against threats that have become more realistic following recent events.

She pointed out that Britain committed about £400 million for official development assistance, as one of the largest bilateral donors to Ukraine.

Meanwhile, Saudi Arabia announced that it would provide $10 million to Ukraine.

Moreover, Saudi Arabia’s King Salman Center for Relief and Humanitarian Action signed two agreements with UN agencies, namely the World Health Organization and UNHCR to provide medical assistance and shelter to Ukrainian refugees.

“Riyadh and London share many development goals, as part of a growing bilateral partnership, and work together to identify future opportunities for joint development financing,” said Walters.

“Over the past two months, since the start of the Russian invasion of Ukraine, we have seen major disruptions to global supply chains and energy markets, causing inflation, commodity shortages, and price hikes all over the world,” she added.

“The production and export of food in Ukraine have been paralyzed, while Russia has imposed restrictions on the export of wheat and fertilizers,” said Walters.

British diplomacy is looking forward to the world reaching a quick end to this crisis.

However, in Walters’ opinion, this requires the Russian government's seriousness about engaging in diplomacy and negotiations and following up on any commitments it undertakes.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
TT

Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.