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Riyadh to Host First Gathering of Energy Economies in the Middle East  

A night view of Riyadh, Saudi Arabia. (AFP)
A night view of Riyadh, Saudi Arabia. (AFP)
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Riyadh to Host First Gathering of Energy Economies in the Middle East  

A night view of Riyadh, Saudi Arabia. (AFP)
A night view of Riyadh, Saudi Arabia. (AFP)

Preparations are underway in Riyadh to host the Energy Economics Conference, which is being organized by the International Association for Energy Economics (IAEE), for the first time in the Middle East and North Africa region. 

Under the slogan, “Pathways to a Clean, Stable and Sustainable Energy Future”, the conference will be held at the King Abdullah Petroleum Studies and Research Center (KAPSARC) from February 4 to 9, 2023. It will bring together policy makers, academic and corporate and non-government organizations, to present, discuss and debate critical challenges and solutions surrounding the unfolding energy trilemma. 

An official statement on Sunday pointed to the importance of the conference “in light of rising energy costs and increasing pressures to transition from fossil fuel reliance to clean and renewable alternatives.” 

The statement added: “Individuals, businesses, industries, and nations require a long-term balance between energy reliability, affordability, and sustainability.”

“The foundations for successful post-conference outcomes have already been laid with Egypt’s recent hosting of COP27. The event also has the potential to consolidate the wider region’s climate change leadership credentials ahead of COP28 in the UAE in 2023.”

Fahad Alajlan, President of KAPSARC, said: “As accelerating the energy transition becomes ever more imperative for achieving net zero and definitively overcoming the evolving climate crisis in due course, the global community has a unique opportunity to work together to realize mutual aspirations.” 

He continued: “The 44th IAEE Conference represents another key chapter in facilitating dialogue and exchanging knowledge and innovation on the local, regional, and international levels and we are proud to be hosting an event of such profile and influence.” 

Dr. Majid Al Moneef, chairman of the Saudi Association for Energy Economic (SAEE), said: “This timely conference will address the energy and environmental issues facing the region and the world.” 

The event program will feature over 11 plenary sessions and three workshops, beginning with an inaugural speech by Prince Abdulaziz bin Salman Al Saud, Saudi Minister of Energy and KAPSARC’s Chairman of the Board of Trustees.

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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
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4 Factors Behind the Decline of Saudi Stock Market in H1 2025

Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 
Two investors monitor the trading screen in the Saudi financial market in Riyadh (AFP) 

Financial analysts and market specialists have identified four main factors driving the decline of the Saudi stock market during the first half of 2025. Speaking to Asharq Al-Awsat, they pointed to heightened geopolitical tensions in the region, ongoing trade disputes and tariffs between the United States, China, and Europe, oil price volatility, and persistently high interest rates. Collectively, these pressures have squeezed liquidity and weighed heavily on market performance.

Despite the downturn, analysts expect the market to gradually recover over the second half of the year, supported by potential global interest rate cuts, stabilizing oil prices, easing economic uncertainty, and forecasts of robust growth in Saudi Arabia’s GDP and the non-oil sector, alongside continued government spending on major projects.

The Saudi stock market recorded notable losses in the first six months of 2025, with the benchmark index retreating 7.25%, shedding 872 points to close at 11,163, compared to 12,036 at the end of 2024. Market capitalization plunged by around $266 billion (SAR 1.07 trillion), bringing the total value of listed shares to SAR 9.1 trillion.

Seventeen sectors posted declines during this period, led by utilities, which plummeted nearly 32%. The energy sector fell 13%, and basic materials dropped 8%. In contrast, telecom stocks advanced around 7%, while the banking sector eked out a marginal 0.05% gain.

Dr. Suleiman Al-Humaid Al-Khalidi, a financial analyst and member of the Saudi Economic Association, described the first-half performance as marked by significant swings. “The index rose to 12,500 points, only to lose nearly 2,000 points before recovering to about 11,260,” he said.

He attributed the volatility to several factors: regional geopolitical strains, oil prices dipping to $56 a barrel, and high interest rates, which constrained liquidity. He noted that financing costs for traders now range between 7.5% and 9%, historically elevated levels.

“The Saudi market posted the steepest decline among regional exchanges despite record banking sector profits, which failed to translate into stronger overall index performance,” he observed.

Looking ahead, Al-Khalidi anticipates three interest rate cuts totaling 0.75 percentage points by next year, which would bring rates down to about 3.75%. “That should encourage a recovery in trading activity, improve liquidity, and support an upward trend in the index toward 12,000 points, potentially reaching 13,500 if momentum builds,” he added.

Meanwhile, Mohamed Hamdy Omar, economic analyst and CEO of G-World, described the downturn as largely expected, citing external pressures and prolonged trade tensions between the US, China, and Europe. “Retaliatory tariffs dampened investor confidence globally, and Saudi Arabia was no exception,” he said.

Lower oil revenues also strained state finances, leading to a budget deficit of SAR 58.7 billion in the first quarter, further tightening liquidity. Trading volumes fell over 30% year-on-year.

Omar pointed out that changes to land tax regulations and heightened regional security risks also weighed on sentiment. Nonetheless, he expects gradual improvement in the second half of 2025, driven by anticipated rate cuts, rebounding oil prices, and continued large-scale public investments.

He stressed the need for vigilance: “Saudi Arabia remains among the most stable markets, thanks to proactive regulation and policies designed to attract foreign capital and bolster investor confidence.”