عربي English Türkçe اردو فارسى
Logo
Latest News
Business

ADNOC Allocates $15 Bn to Low-Carbon Solutions

The ADNOC headquarters in Abu Dhabi. (WAM)
The ADNOC headquarters in Abu Dhabi. (WAM)
TT
TT

ADNOC Allocates $15 Bn to Low-Carbon Solutions

The ADNOC headquarters in Abu Dhabi. (WAM)
The ADNOC headquarters in Abu Dhabi. (WAM)

ADNOC allocated $15 billion for landmark decarbonization projects by 2030, including carbon capture, electrification, new CO2 absorption technology, and enhanced investments in hydrogen and renewables.  

The announcement followed the guidance of ADNOC's Board of Directors in November 2022 to accelerate the delivery of its low-carbon growth strategy and approve its Net Zero by 2050 ambition. 

It was established on ADNOC's strong track record as a leading lower-carbon intensity energy producer, which includes its use of zero-carbon grid power, a commitment to zero flaring as part of routine operations, and deployment of the region's first carbon capture project at scale. 

ADNOC's projects would include investments in clean power, carbon capture and storage (CCS), further electrification of its operations, energy efficiency, and new measures to build on ADNOC's long-standing policy of zero routine gas flaring.  

ADNOC would also apply a rigorous commercial and sustainability assessment to ensure that each project delivers lasting, tangible impact.  

Throughout 2023, a suite of new projects and initiatives will be announced, including a first-of-its-kind CCS project, innovative carbon removal technologies, investment in new, cleaner energy solutions, and strengthening of international partnerships.  

Aside from the formation of ADNOC's new Low Carbon Solutions and International Growth Directorate, the projects represent tangible and concrete action as the company reduces its carbon intensity by 25 percent by 2030 and moves towards its Net Zero by 2050 ambition.  

UAE Minister of Industry and Advanced Technology, Sultan al-Jaber stressed that ADNOC continues to take significant steps to make today's energy cleaner while investing in the clean energies and new technologies of tomorrow.  

Jaber, ADNOC Managing Director and CEO, noted that now, more than ever, the world needs a practical and responsible approach to the energy transition that is both pro-growth and pro-climate, and ADNOC is delivering tangible actions in support of both these goals.  

"Cementing our strong track record of responsible and reliable energy production, ADNOC will fast-track significant investments into landmark clean energy, low-carbon, and decarbonization technology projects," he remarked.  

"We continue to future-proof our business. We invite technology and industry leaders to partner with us, to collectively drive real and meaningful action that embraces the energy transition," he said.  

Jaber asserted that the strategic, multi-billion-dollar initiative underscores ADNOC's industry leadership as a leading global provider of lower-carbon energy.  

Building on ADNOC's al-Reyadah facility, which can capture up to 800,000 tons of CO2 per year, the company will announce plans to deploy technologies to capture, store, and absorb CO2.  

ADNOC is leveraging the UAE's geological properties while preparing for its next significant investment to capture emissions from its Habshan gas processing facility.  

The company planned to expand its carbon capture capacity to 5 million tons per annum by 2030, firmly establishing the UAE as a worldwide hub for carbon capture expertise and innovation. 

Most Viewed

 
 
Business

Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
TT
TT

Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.