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IFAD President: Saudi Arabia Key Partner in Global Efforts Against Climate Challenges

President of the International Fund for Agricultural Development (IFAD) Alvaro Lario (Asharq Al-Awsat)
President of the International Fund for Agricultural Development (IFAD) Alvaro Lario (Asharq Al-Awsat)
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IFAD President: Saudi Arabia Key Partner in Global Efforts Against Climate Challenges

President of the International Fund for Agricultural Development (IFAD) Alvaro Lario (Asharq Al-Awsat)
President of the International Fund for Agricultural Development (IFAD) Alvaro Lario (Asharq Al-Awsat)

In a time where warnings about overlooking the crises of climate change, food scarcity, and water scarcity are prevalent, Alvaro Lario, the President of the International Fund for Agricultural Development (IFAD), emphasized that the Fund is effectively addressing these challenges.
Lario underscored the pivotal role of the Kingdom of Saudi Arabia as a key player in specialized international efforts, reflecting positively on the outcomes of agricultural development strategies.
Speaking to Asharq Al-Awsat, Lario said: “Saudi Arabia holds fundamental importance within United Nations organizations, especially concerning IFAD’s agricultural development plans.”
He pointed out that IFAD is currently implementing a developmental project in the Jazan region, focusing on coffee and mango farms, with hopes of launching additional projects in the near future.
Lario explained that the Kingdom is making substantial efforts aligned with the international strategy to confront climate change and environmental pollution.
Initiatives such as the “Green Saudi Initiative” and the “Green Middle East Initiative” attest to Saudi Arabia’s commitment, along with its support for agricultural development plans that align with IFAD’s direction.
Lario affirmed IFAD’s readiness to enhance its partnership with Saudi Arabia in agricultural sectors, investing in the industry’s development, improving efficiency, and implementing sustainable practices.
The goal is to contribute to supporting safe and sustainable food, fortifying food security, enhancing agricultural sector efficiency, establishing projects for rural and remote farmers, and exchanging expertise with Saudi institutions like the Saudi Agricultural Development Fund.
According to Lario, IFAD is working to strengthen its capabilities to increase the resilience of small rural producers.
He emphasized that IFAD’s investments contribute to adapting to climate change and sustainable food systems, achieving numerous sustainable development goals.
Lario highlighted the alignment of IFAD’s work with the ethos of the “Green Middle East Initiative,” which seeks to restore the ecosystem through tree planting.
Beyond addressing short-term shocks, IFAD aims to lay the foundation for the future by assisting small farmers in sustaining their work with nature. Hence, water management becomes a crucial element for them.
Lario also noted that addressing major climate events is vital, as it is an urgent issue that unites governments, private sector institutions, and civil society.

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Business

Business-Friendly Climate Draws 123,000 New Commercial Registrations in Saudi Arabia

 Employees at the Saudi Business Center (SPA). 
 Employees at the Saudi Business Center (SPA). 
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Business-Friendly Climate Draws 123,000 New Commercial Registrations in Saudi Arabia

 Employees at the Saudi Business Center (SPA). 
 Employees at the Saudi Business Center (SPA). 

Saudi Arabia’s business environment attracted 123,000 new commercial registrations in the fourth quarter of 2025, pushing the total number of active registrations past 1.8 million by year-end. Foreign investment in the healthcare sector surged by nearly 560 percent over the past three years, highlighting strong international confidence in the Saudi market.

According to a recent report by the Ministry of Commerce, reviewed by Asharq Al-Awsat, the number of active sole proprietorship registrations reached 1.26 million by the end of 2025, reflecting 20 percent growth over the past five years.

Active limited liability companies (LLCs) totaled 571,000, with a sharp 183 percent increase over five years. Meanwhile, the number of joint-stock companies grew 50 percent over the same period to 4,733 active registrations.

Regional and Sectoral Performance

Riyadh led the Kingdom in new commercial registrations during the final quarter of 2025 with 45,600 records, followed by the Eastern Province with more than 20,000, and Makkah Region with 19,200.

The construction sector topped all industries, with more than 66,000 registrations issued during the quarter. It was followed by wholesale and retail trade with 24,900, and manufacturing industries with 23,700, while the remainder was spread across other activities.

The report also highlighted a strong rise in e-commerce sales conducted via Mada cards in October, which hit a record SAR 30.7 billion ($8.1 billion) - a 68 percent year-on-year increase, up SAR 12.4 billion ($3.3 billion) from October 2024, according to data from the Saudi Central Bank (SAMA).

Healthcare Sector Momentum

The Ministry of Commerce said Saudi Arabia continues to roll out development projects aimed at improving healthcare quality and capacity by strengthening national talent, adopting innovative digital solutions, and upgrading medical facilities.

The Kingdom ranks first regionally in healthcare investment, with agreements signed at the recent Global Health Exhibition in Riyadh valued at about SAR 133 billion ($35.4 billion). Foreign investment in the sector has expanded by more than 560 percent in three years, with healthcare contributing 5 percent of GDP.

Healthcare-related activities saw strong growth in the fourth quarter, including medical laboratories (+33%), pharmaceutical manufacturing (+31%), physiotherapy centers (+31%), and telemedicine and remote care services (+30%).

E-Commerce and High-Growth Sectors

Active e-commerce registrations rose 9 percent year-on-year to 43,800 by the end of the fourth quarter, up from 40,000 in the same period of 2024. Strengthening the e-commerce ecosystem is a key objective of the National Transformation Program, with Saudi Arabia ranked among the world’s top 10 fastest-growing e-commerce markets.

Promising sectors highlighted by the report include artificial intelligence, gaming, cybersecurity, health software, and electric vehicle charging stations. AI-related registrations grew 34 percent to more than 19,000, while gaming rose 27 percent to 841 registrations. UI/UX design activities climbed 28 percent to 18,900.

Cybersecurity registrations increased 27 percent to 9,700, while health and medical software surged 85 percent to 4,300. Power generation and distribution activities grew 27 percent, and EV charging station operations expanded 26 percent to 4,300 registrations.

Investment Deals and Forums

The report cited the success of the Biban Forum, recently held in Riyadh, which generated agreements and launches exceeding SAR 38 billion ($10.1 billion). Investment deals worth SAR 22.2 million ($5.9 million) benefited 55 startups, with participation from 1,021 companies across 66 countries.

It also highlighted the Northern Borders Forum, which offered more than 240 investment opportunities valued at SAR 40 billion ($10.6 billion) across sectors including livestock, food, mining and energy, tourism, environment, and logistics.

 

 

Business

SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 
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SABIC Reshapes Global Footprint With $950m Divestment Deals

A SABIC employee (company website) 
A SABIC employee (company website) 

Saudi Basic Industries Corporation (SABIC) has announced a major overhaul of its global portfolio, accelerating its exit from petrochemical and engineering plastics assets in Europe and the Americas through two divestment deals worth a combined $950 million.

The move marks a fundamental shift in the company’s operating model and investment identity. It comes as part of an intensive portfolio-optimization program launched in 2022, aimed at boosting returns on capital, freeing up cash, and refocusing investments on higher-growth markets and more sustainable profit margins.

Following the announcement, SABIC shares came under heavy selling pressure on Thursday, falling to 48.78 riyals — their lowest level since April 2009. The decline reflected investor reaction to deal details that include non-cash losses of about $4.88 billion (18.3 billion riyals), stemming from the fair-value revaluation of divested assets. These charges are expected to weigh on the company’s fourth-quarter 2025 results.

While the market response was cautious, analysts say the accounting hit represents a necessary short-term sacrifice to build a leaner, more competitive company aligned with the new centers of global economic growth in East Asia. The divestments also fit within SABIC’s longer-term strategic shift that began in 2020, when Saudi Aramco acquired a 70% stake in the company from the Public Investment Fund for $69.1 billion in the largest deal in the history of the Saudi stock market.

Focus on Higher-Margin Markets

According to SABIC, the first transaction involves the sale of its European petrochemicals business to investment firm AEQUITA for an enterprise value of $500 million. The second covers the sale of its thermoplastics engineering plastics business in Europe and the Americas to Mutares SE & Co. KGaA for $450 million, with potential additional payments linked to future free cash flow over the next four years or a subsequent resale of the business.

SABIC said the transactions represent a key step in reshaping its portfolio, sharpening its focus on higher-margin markets and products with strong competitive advantages, while redeploying capital into opportunities that deliver stronger returns and improved free cash flow. The company stressed that the divestments will not detract from its commitment to technology and innovation or its ability to serve customers worldwide.

Short-Term Pain, Long-Term Gain

SABIC chairman Khalid Al-Dabbagh described the deals as a “transformational step” in the company’s strategy to maximize shareholder value by strengthening cash generation.

Chief executive Abdulrahman Al-Fageeh said the transactions extend the portfolio-optimization program launched in 2022, which included earlier exits from functional forms and the Hadeed and Alba businesses. He said the strategy allows SABIC to reshape its portfolio more effectively and concentrate on areas where it has clear and sustainable competitive advantages in a rapidly changing global environment.

For his part, Chief financial officer Salah Al-Hareky added that the divestments reflect SABIC’s disciplined approach to capital management. Freeing up capital for redeployment into higher-return opportunities, he said, will improve capital efficiency and enhance returns over the medium to long term.

Assets Involved

The European petrochemicals business being sold includes the production and marketing of ethylene, propylene, polyethylene, polypropylene and value-added polymer compounds, with manufacturing sites in the UK, the Netherlands, Germany and Belgium.

The engineering thermoplastics deal covers SABIC assets producing materials such as polycarbonate, polybutylene terephthalate and ABS resins, with manufacturing facilities in the United States, Mexico, Brazil, Spain and the Netherlands. Mutares co-founder and chief executive Robin Laik said the priority after completion will be ensuring business continuity and supporting employees during the transition, while unlocking the full potential of the assets as a standalone platform.

Completion of both transactions remains subject to customary conditions and regulatory approvals, including employee consultations where required. SABIC expects the deals to close in the second half of 2026.

Analysts see the exits from lower-return assets as a catalyst for improved margins and stronger free cash flow, positioning SABIC for a more resilient and profitable phase beyond the near-term pressures on its share price.

 

 

 

Business

TotalEnergies Gets New Exploration Permit Offshore Lebanon

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
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TotalEnergies Gets New Exploration Permit Offshore Lebanon

A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)
A sign with the logo of French oil and gas company TotalEnergies is pictured at a petrol station in Bouguenais near Nantes, France, Nov. 14, 2022. (Reuters)

French oil major TotalEnergies has obtained government permission for a new exploration permit offshore Lebanon, it said on Friday.

Total, ‌which owns ‌a 35% ‌operating ⁠stake ​in ‌the permit, will begin 3D seismic surveys on Block 8 with partners Eni (35%) and QatarEnergy (30%).

The French company moved to hunt for natural ⁠gas in Lebanon in late 2022, ‌following the government's ‍landmark agreement ‍of a maritime border with ‍Israel in the Mediterranean Sea - though an initial exploration campaign on an adjacent block was disappointing.

"Although ​the drilling of the well Qana 31/1 on ⁠Block 9 did not give positive results, we remained committed to pursue our exploration activities in Lebanon," TotalEnergies CEO Patrick Pouyanne said in a statement.