Five Key Areas Drive Social, Economic Growth in Saudi Arabia

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Five Key Areas Drive Social, Economic Growth in Saudi Arabia

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As Saudi Arabia’s public and private sectors strive to exceed expectations set by “Vision 2030,” an international report highlighted five key areas crucial for social and economic growth in the kingdom.
The recent report stressed the importance of developing regions outside the main urban centers to achieve the ambitious goal of making Saudi Arabia one of the world’s top 15 economies.
Published by Arthur D. Little, the report estimated a potential economic contribution of 27 billion riyals ($7.2 billion). The growth focused on five main areas: strategy, governance, human capital, infrastructure, and investment.
The report outlined success factors that can strengthen regional economies and boost national growth to meet Vision 2030 targets.
Saudi regions have significant potential to support GDP growth, especially major urban centers like Riyadh, Dammam, and Jeddah, which have a per capita GDP of around 107 riyals ($28.5).
Dr. Abdul Rahman Baashen, head of the Al Shorouk Center for Economic Studies in Jazan, highlighted that Saudi Arabia’s strategic approach is crucial for the kingdom’s development in various fields, including civilization, sports, culture, and economy.
Speaking to Asharq Al-Awsat, Baashen emphasized the successful collaboration between Saudi Arabia’s public and private sectors, which has greatly advanced the goals of “Vision 2030.”
He pointed out that achievements in economic growth, investment attraction, and innovation have been significant.
Baashen noted the impressive performance of the Saudi Public Investment Fund, which doubled its revenues to $88.5 billion in 2023, thanks to the growth in its portfolio’s market value and the strong performance of the National Industrial Development Program, which increased by 87%.
He also mentioned that rapid growth in key sectors like energy, industry, mining, and logistics has driven comprehensive development. Foreign direct investment (FDI) into Saudi Arabia increased by 5.6%, reaching 9.5 billion riyals ($2.5 billion) in the first quarter of this year.



MWL Condemns Attack Targeting Pakistani Police

The Muslim World League (MWL) logo
The Muslim World League (MWL) logo
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MWL Condemns Attack Targeting Pakistani Police

The Muslim World League (MWL) logo
The Muslim World League (MWL) logo

The Muslim World League (MWL) strongly condemned the attack targeting police personnel in Pakistan’s Khyber Pakhtunkhwa Province, the Saudi Press Agency reported on Thursday.

In a statement issued by its General Secretariat, MWL Secretary-General and Chairman of the Organization of Muslim Scholars, Sheikh Mohammed Al-Issa, affirmed the League’s solidarity with the Islamic Republic of Pakistan in the face of all threats to its security and stability. He reiterated the MWL’s firm rejection and condemnation of violence and terrorism in all their forms and under any pretext.

He also extended his sincere condolences and sympathies to the families of the victims and to the Pakistani people.


Saudi PIF Backs Multibillion-Dollar Projects to Boost Sustainability

A solar power project in Saudi Arabia (SPA)
A solar power project in Saudi Arabia (SPA)
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Saudi PIF Backs Multibillion-Dollar Projects to Boost Sustainability

A solar power project in Saudi Arabia (SPA)
A solar power project in Saudi Arabia (SPA)

Saudi Arabia’s Public Investment Fund has fully allocated the proceeds of its green bond issuance, directing $9 billion to eligible projects, in a move that highlights the sovereign wealth fund’s growing role in shaping a more sustainable future and delivering lasting positive impact worldwide.

According to a recent report issued by the Public Investment Fund, reviewed by Asharq Al-Awsat, the expected impact of the fund’s eligible green projects includes generating 427 megawatts of renewable energy, avoiding emissions equivalent to 5.1 million tons of carbon dioxide, and treating 4 million cubic meters of wastewater.

The Public Investment Fund aims to establish itself as an active participant in global debt markets, while also fostering the development of a dynamic domestic market. This would enable the fund to access short- or long-term liquidity through a diverse range of financing instruments.

Financing strategy

The fund’s capital markets program aims to further strengthen its financing strategy and execution capabilities, both at the level of the Saudi sovereign wealth fund and across its portfolio companies, while enabling deeper engagement with global and local debt markets.

The program will also support expanding the fund’s capacity to raise debt and deploy it as a source of investment financing, in line with its overall funding strategy. This approach is designed to instill greater discipline in cash flow management and enhance returns on equity for the fund and its portfolio companies.

The green bond issuance will provide the fund with access to a broader pool of investors who prioritize environmental, social, and governance considerations in their investment decisions. It will also allow investors to diversify their portfolios through green assets, a step expected to help accelerate the pace of green investment globally.

Climate change

The fund has taken concrete steps to advance governance and policy, focusing on sustainability, and is a founding member of the One Planet Sovereign Wealth Funds initiative. This international platform aims to accelerate the integration of climate change considerations into asset management decisions and investment opportunities.

As an investment vehicle, the Public Investment Fund operates through acquiring stakes in companies aligned with its mandate, including ACWA Power and Lucid.

It has also established the Saudi Investment Recycling Company, a leader in waste management and recycling, manages the National Energy Services Company, Tarshid, and supports the creation of a voluntary carbon market in the Middle East and North Africa.

These efforts aim to strengthen Saudi Arabia’s position as one of the world’s most energy-efficient countries.

The green bond issuance will finance tangible projects on the ground, helping to accelerate the green transition and advance the Kingdom’s core targets of achieving net zero emissions by 2060 and generating 50 percent of electricity consumption from renewable energy sources by 2030.

This forms a key pillar of the renewable energy program implemented by the fund, which involves developing 70 percent of renewable power generation capacity.


Muscat Detainee Swap Deal Tests Houthi Credibility

Prisoner swap success hinges on Houthi commitment, seriousness (Gov’t Media)
Prisoner swap success hinges on Houthi commitment, seriousness (Gov’t Media)
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Muscat Detainee Swap Deal Tests Houthi Credibility

Prisoner swap success hinges on Houthi commitment, seriousness (Gov’t Media)
Prisoner swap success hinges on Houthi commitment, seriousness (Gov’t Media)

The agreement reached by the Yemeni government in Muscat with the Houthis to exchange about 2,900 prisoners and detainees from both sides marks a new test of the group’s credibility in closing one of the conflict’s most complex humanitarian files after years of delays and failure.

Despite a broad local and international welcome for the deal, doubts still surround its implementation mechanisms, given the absence of final lists and continuing ambiguity over the fate of Mohammed Qahtan, a senior figure in the Islah party who has been abducted for nearly a decade.

According to sources close to the talks, the agreement, sponsored by the office of the United Nations' special envoy for Yemen and supported by the International Committee of the Red Cross, remains at this stage only a preliminary understanding, expected to be implemented within a month.

Sources familiar with the negotiations said the first clause of the agreement is limited to the release of prisoners affiliated with the Saudi-led coalition supporting Yemen’s internationally recognized government, in addition to Mohammed Qahtan. Other details of the deal, including the names of those to be included, remain subject to further bargaining and negotiations between the parties and the mediators.

The same sources stated that what has been achieved so far does not amount to a final settlement, noting that previous negotiation rounds have repeatedly been tied to complex Houthi demands. These have included the insertion of names of fighters missing on the front lines, whom the group claims are held by the government without providing evidence, as well as its repeated refusal to include abducted civilians on the grounds that they are “under judicial process.”

Circles close to the negotiations said appointing Yahya al-Razami, the Houthis’ representative on the military committee, to lead the group’s negotiating team instead of Abdul Qader al-Murtada helped create an atmosphere conducive to reaching the preliminary agreement.

They said al-Murtada, who has been accused of involvement in the torture of some detainees, was a key reason behind the failure of several previous negotiation rounds because of his hardline stance and insistence on what were described as unrealistic conditions.

The same sources added that al-Razami’s presence at the head of the Houthis’ team facilitated discussions and paved the way for agreement on the principle of a comprehensive exchange of prisoners and detainees from both sides, although this remains conditional on the Houthis’ commitment to their pledges and the sincerity of their intentions in providing accurate and reliable information about detainees.

In contrast, the Yemeni government, according to the same assessments, has voiced serious concerns that the Houthis may seek to strip the agreement of its humanitarian substance through stalling tactics or by reintroducing the same conditions that derailed previous attempts.

These indications underline that the success of the deal hinges on the Houthis’ seriousness in honoring their commitments and fully disclosing the fate of all abductees, foremost among them Mohammed Qahtan.

The fate of Mohammed Qahtan remains one of the primary obstacles to implementing the agreement. Although his name was included in the first phase of the deal, his fate has been unknown since his arrest in 2015 at a security checkpoint near the entrance to the city of Ibb. To date, the Houthis have not disclosed whether he is still alive.

According to the sources, this ambiguity has undermined previous understandings and led to the collapse of earlier negotiation rounds, after the Houthis demanded 30 prisoners if Qahtan was alive, or 30 bodies if his death was confirmed.

Officials involved in the file said such behavior raises serious doubts about his fate after more than 10 years and eight months of enforced disappearance, weakening the prospects for building the trust needed to advance the remaining stages of the exchange agreement.

The sources emphasized that the success of any prisoner exchange cannot be achieved without addressing the Qahtan case with clarity and transparency, as it represents both a humanitarian and a political issue, and a genuine test of the Houthis’ commitment to international humanitarian law.

Under the announced understandings, the deal is to be implemented in three main phases. The first phase includes the release of prisoners affiliated with the coalition supporting the Yemeni government, in addition to Mohammed Qahtan. In the second phase, which begins approximately a week later, a joint committee will be formed to conduct field visits to detention sites and document the names of all detainees related to the conflict.

The verified lists will then be submitted to the office of the UN special envoy for Yemen and the International Committee of the Red Cross for official approval and the launch of the exchange process. The third phase will be dedicated to the remains file, covering the exchange of bodies of those killed and the search for the remains of the missing in battle areas, with the aim of closing this painful chapter.

The sources stated that it was agreed upon to include a total number of individuals in the exchange from both sides, with names to be finalized within a month, as well as the recovery of all bodies from various fronts and their handover through the International Committee of the Red Cross. It was also agreed to form committees to visit prisons after the exchange and identify any remaining prisoners, in preparation for their release.

The greatest burden, the sources said, will fall on international mediators, particularly the office of the UN special envoy and the International Committee of the Red Cross, to ensure the agreement is implemented, prevent any party from circumventing it, and establish a clear timeline starting with gathering prisoners and abductees at designated points, matching lists, and setting a start date for the exchange operation.