Saudi Arabia Combats Climate Change with 65 Initiatives Worth $13 Billion

Participants attending the Saudi Green Initiative Forum discuss efforts by the Kingdom to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. REUTERS/Ahmed Yosri
Participants attending the Saudi Green Initiative Forum discuss efforts by the Kingdom to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. REUTERS/Ahmed Yosri
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Saudi Arabia Combats Climate Change with 65 Initiatives Worth $13 Billion

Participants attending the Saudi Green Initiative Forum discuss efforts by the Kingdom to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. REUTERS/Ahmed Yosri
Participants attending the Saudi Green Initiative Forum discuss efforts by the Kingdom to tackle climate change, in Riyadh, Saudi Arabia, October 23, 2021. REUTERS/Ahmed Yosri

Saudi Arabia is participating in the COP 26 UN Climate Change Conference - hosted by the United Kingdom in partnership with Italy - armed with around 65 initiatives that are worth more than USD13 billion, which are aimed at combatting climate change and developing a relevant environment strategy.

During the opening of the Green Saudi Forum, which was recently held in Riyadh, Crown Prince Mohammed bin Salman revealed the first package that will contribute to achieving green Saudi initiatives, pointing out that the Kingdom will seek to reduce emissions by more than 270 million tons annually, in addition to a number of other initiatives announced on the sidelines of the summit.

Saudi Arabia’s participation in the ongoing international conference reflects the importance it attaches to climate change and environmental protection, in line with the transformation program within Vision 2030.

The Kingdom has launched a process for structuring its environmental work system, which included the establishment of five environmental centers specialized in meteorology, environmental compliance, biodiversity, plant cover development, combating desertification and managing waste.

A week ago, Riyadh hosted the Saudi Green Initiative Forum, which witnessed the announcement of more than 59 initiatives, and the Green Middle East Initiative summit, in the presence of international stakeholders and regional leaders.

The Ministry of Energy also launched the initiative of the Custodian of the Two Holy Mosques for Renewable Energy, which seeks to increase the percentage of renewable energy to reach the optimal mix, raise the efficiency of the electricity sector and achieve environmental goals by reducing carbon dioxide emissions, in addition to realizing a set of major economic goals.

The Kingdom aims to reach net-zero emissions by 2060 by implementing the carbon circular economy approach, through the first set of Green Saudi initiatives, with investments exceeding 700 billion riyals, in order to chart a more sustainable future.

Environmental Expert Dr. Ali Eshqi told Asharq Al-Awsat that the Kingdom has recently played a major role in fighting global warming by increasing the area of green spaces, which contributes to raising the proportion of oxygen in the atmosphere and reducing carbon dioxide.

On the other hand, the Kingdom’s plans in the field of renewable energy sources included wind and solar energy, which will represent 50 percent of the energy used to produce electricity in the Kingdom by 2030.

Saudi Arabia will also join the Global Methane Pledge to reduce global emissions by 30 percent compared to the level of emissions in 2020.

Efforts to protect the environment and preserve its natural resources included establishing an environment fund to contribute to achieving financial sustainability for this sector, setting up special forces for environmental security, and developing national capabilities in the field of predicting natural disasters and early warning.

Moreover, the Saudi State has established the Council for Royal Reserves to develop natural reserves in six locations in the Kingdom, by raising the percentage of protected areas to more than 30% of the country’s land area, which exceeds the current global target to protect 17% of each country’s lands.

In a more remarkable development, Saudi Arabia has started implementing the first phase of afforestation initiatives, which seeks to plant more than 450 million trees, rehabilitate 8 million hectares of degraded lands and allocate new protected lands, bringing the total protected areas in the Kingdom so far to more than 20 percent of its total surface.

Eshqi said: “If we plant 10 million trees in the Middle East as planned in the Saudi initiative launched by Crown Prince Mohammed bin Salman, we will reach a natural balance with the percentage of existing gases, especially carbon dioxide.”

The Saudi Ministry of Environment, Water and Agriculture worked on the optimal investment of water wealth through rationalization and the use of treated and renewable water and the establishment of an integrated project for waste recycling, as well as raising the percentage of waste diversion from landfills to 94 percent.

The Kingdom’s pioneering initiatives in the field of climate action include two projects to establish a fund to invest in solutions for circular carbon economy technologies in the region, and a global initiative to provide clean fuel solutions to provide food to more than 750 million people around the world.



IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
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IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.


Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
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Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.


Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
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Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.