عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Advances 10 Places in Green Future Index 2022

A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
TT
TT

Saudi Arabia Advances 10 Places in Green Future Index 2022

A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)
A view of the Asir region in southern Saudi Arabia, where the government is making intensive efforts to increase afforestation. (Asharq Al-Awsat)

Environmental initiatives and programs, including the Green Saudi Arabia and the Green Middle East initiatives, as well as the carbon circular economy and energy transformations, have contributed to advancing Saudi Arabia’s ranking in the Green Future Index for 2022.

Issued by the MIT Technology Review of the Massachusetts Institute of Technology, the Index highlighted Saudi Arabia’s 10 place advancement, following leading programs and initiatives led by Crown Prince Mohammed bin Salman.

In a report, the Saudi Press Agency (SPA) noted that the Kingdom’s rapid progress in the Green Future Index crowns the efforts, programs, and initiatives, which include the Saudi and Middle East Green Initiatives (SGI & MGI) and the establishment of royal natural reserves to increase vegetation in the Kingdom.

The Green Future Index report showed that the Kingdom has moved up in the Carbon Emissions Pillar by 27 places, ranking 19th globally. The progress was driven by the Kingdom’s announcement that it would raise the carbon-emissions target in its nationally determined contribution (NDC) to 278 mtpa by 2030, more than double the 133 mpta announced in 2015.

The announcement of Saudi Arabia’s aspiration to reach net-zero by 2060 has also contributed to this progress. Depending on the maturity and availability of the necessary technologies, the Kingdom seeks to achieve this ambitious goal through the implementation of the CCE approach, in line with its development plans and economic diversification efforts, and consistent with the “dynamic baseline” stipulated in the Kingdom’s NDC.

The Kingdom has also launched, in this context, a national program for the Circular Carbon Economy, a comprehensive approach endorsed by G20 leaders during the country’s presidency of the summit in 2020.

In the Energy Transition Pillar, the Kingdom advanced 12 places, ranking 12th, as well as ranking first in the Renewable Energy Growth Indicator within the same pillar.

This progress was led by the Kingdom’s announcement that it would raise the share of renewable energy in the energy mix used for electricity production to 50% by 2030.

The Green Future Index is an annual ranking of 76 countries based on their ability to develop a sustainable, low-emissions future. It also measures the degree to which these economies are turning towards clean energy, in industry, agriculture, and society through innovation, policy, and investment in renewables.

The Index is divided into five pillars: Carbon Emissions, Energy Transition, Green Society, Clean Innovation, and Climate Policy.

The Green Saudi Arabia initiative forum, which was held in October last year, announced a first package of more than 60 new initiatives and projects, with investments worth more than 700 billion riyals ($186.6 billion) to contribute to the development of the green economy. The Riyadh Initiative supports all climate action efforts under a single vision that paves the way to reach zero neutrality.

Most Viewed

 
 
Business

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
TT
TT

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.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

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

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.

Business

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).
TT
TT

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.