Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action

A group photo of OAPEC members. (SPA)
A group photo of OAPEC members. (SPA)
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Transforming OAPEC into the Arab Energy Organization: A Step Toward Enhanced Collective Action

A group photo of OAPEC members. (SPA)
A group photo of OAPEC members. (SPA)

The transformation of the Organization of Arab Petroleum Exporting Countries (OAPEC) into the Arab Energy Organization marks a strategic step toward reinforcing Arab cooperation in the energy sector.

The move supports collective efforts and contributes to sustainable development across the region. By broadening its scope to encompass all forms of energy—not just petroleum—the organization is adapting to modern demands and becoming more inclusive.

This shift provides an opportunity to enhance the efficiency of Arab collaboration in the energy field, keeping pace with the evolving global energy landscape, which now includes diversified energy sources and renewable energy. It also positions Arab nations to confront global challenges through unified policies and strategies, strengthening their presence in international markets while bolstering energy security within the region.

Foundation of OAPEC

OAPEC was established in 1968 with the aim of separating petroleum policy discussions from the political conflicts that often dominated the Arab League at the time. Membership was restricted to Arab petroleum-exporting countries, enabling the creation of shared Arab enterprises, such as the Arab Petroleum Investments Corporation (APICORP), headquartered in Dammam, Saudi Arabia.

Over the decades, OAPEC played a key role in shaping Arab petroleum policies and made impactful decisions, such as the 1973 oil embargo. However, calls have grown over the years to transform the organization into a more comprehensive entity that encompasses various energy sectors, boosting Arab cooperation in this critical area.

New Vision for Arab Energy Integration

In this context, Saudi Energy Minister Prince Abdulaziz bin Salman proposed transforming OAPEC into the Arab Energy Organization. The proposal, which has faced challenges due to complex Arab political dynamics, aims to expand cooperation to include renewable and nuclear energy alongside traditional energy sources.

The proposal outlines several strategic objectives, including fostering Arab integration in energy and economic sectors, unifying policies among member states to strengthen collective action, and contributing to sustainable development in the region.

Unlocking New Opportunities for Cooperation

If implemented, this transformation would signify a paradigm shift in Arab collective efforts. The organization would become a hub for coordinating policies and exchanging expertise among member states. It would also empower Arab nations to address global energy challenges while promoting sustainable economic development within the region.

While the success of this transformation depends on political consensus and collective determination to overcome obstacles, it presents a historic opportunity to strengthen Arab integration in one of the world’s most strategic sectors.

Coordinating Energy Initiatives

OAPEC recently announced its restructuring and renaming as the Arab Energy Organization (AEO). According to energy experts, the change allows for more comprehensive coordination of energy initiatives across the Arab world. Such efforts will support and enhance the export of oil and gas while aligning with the global trend of diversifying energy sources.

Dr. Mohammed Al-Sabban, an international economic and energy consultant, explained to Asharq Al-Awsat that the original name, OAPEC, was centered on petroleum exports. However, the current shift toward multiple energy sources and greater collaboration among Arab nations motivated Saudi Arabia to propose renaming the organization as the Arab Energy Organization.

Al-Sabban emphasized that the new name reflects a broader mandate, offering an opportunity for coordinated efforts in various energy sectors.

“Western nations claim they are moving away from oil and gas production, yet they continue to heavily support coal—a clear double standard,” he remarked.

He noted that Saudi Arabia is intensifying efforts to diversify energy sources, focusing on hydrogen development, renewable energy, and nuclear power. These steps align with the Kingdom’s larger vision of sustainability and global environmental commitments.

During its 113th ministerial meeting in December, OAPEC approved Saudi Arabia’s proposal to rename the organization as the Arab Energy Organization.

OAPEC, founded in 1968, includes 10 member states: Saudi Arabia, Kuwait, Libya, Algeria, Qatar, the UAE, Bahrain, Iraq, Egypt, and Syria. Of these, six are also members of OPEC.



Saudi Arabia Expands Tourist E-Visa Eligibility to Four More Countries

The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
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Saudi Arabia Expands Tourist E-Visa Eligibility to Four More Countries

The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)
The tourist visa allows visitors to attend events, perform Umrah, and visit exhibitions and conferences (SPA)

Saudi Arabia has expanded its electronic tourist visa program by adding four countries to the list of eligible nationalities: Mexico, North Macedonia, Serbia, and Bosnia and Herzegovina.

The Ministry of Tourism said the move is part of ongoing efforts to facilitate travel to the Kingdom for visitors from around the world, allowing citizens of the newly added countries to apply electronically for tourist visit visas.

The tourist visa also permits holders to attend events, perform Umrah, visit exhibitions and conferences, and visit relatives and friends, in accordance with applicable regulations and instructions.


50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)
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50-Year Contracts Open New Horizons for Real Estate Investment in Saudi Arabia

A neighborhood in the Saudi capital, Riyadh (SPA)
A neighborhood in the Saudi capital, Riyadh (SPA)

Long-term real estate investment models are opening new opportunities for Saudi Arabia's private sector, as the Kingdom seeks to expand partnerships with investors to develop municipal assets and transform them into mixed-use projects.

The approach is expected to enhance the appeal of the real estate market, create investment opportunities spanning decades, and attract domestic and international capital to urban development. It also aims to improve land-use efficiency, maximize the economic value of municipal assets and increase housing supply.

Riyadh Region Municipality, the Ministry of Municipalities and Housing, and the National Center for Privatization & PPP (NCP) announced the launch of the expression of interest, prequalification and proposal submission phases for a joint land investment project in northern Riyadh.

The project involves developing a plot of municipal land under a 50-year partnership with the private sector, marking the municipality's first initiative under this joint investment model.

The private-sector partner will be responsible for designing, constructing, operating and maintaining all project facilities.

Located on Zaid bin Asim Street, the strategically positioned 30,015-square-meter site benefits from flexible urban planning regulations that allow for mixed-use development, including residential, commercial, office and recreational facilities.

The project aims to deliver high-quality developments that meet growing demand, serve local residents and community needs, and strengthen Riyadh's urban infrastructure.

Long-Term Investment Strategies

Offering investment opportunities through contracts extending up to 50 years represents a shift in how Saudi Arabia develops government-owned real estate assets.

The model gives private-sector investors a longer timeframe to develop projects and implement long-term investment strategies, overcoming some of the limitations associated with short- and medium-term contracts.

It also strengthens investors' ability to undertake financial and operational planning, allowing them to recover development costs and generate investment returns over a longer period.

This could make such opportunities more attractive to real estate companies and institutional investors.

The project forms part of Riyadh Region Municipality's strategy to improve the efficiency of municipal asset management, expand private-sector participation in urban development and attract high-value investments.

These efforts are intended to promote sustainable urban development, keep pace with the capital's rapid growth and advance Saudi Vision 2030 objectives, in line with the municipality's ambition to help create a prosperous, sustainable Riyadh with a higher quality of life.

Project Sustainability

Real estate expert Khaled al-Mobid said the launch of a 50-year investment project in Riyadh's Al-Narjis district represents an important step toward enabling the private sector to develop real estate assets and transform them into sustainable projects with substantial economic value.

Speaking to Asharq Al-Awsat, he explained that the extended investment period encourages developers to improve construction quality and services while enhancing the financial viability of projects.

He added that the model could help diversify real estate offerings and increase supply in one of the capital's most expensive neighborhoods.

Al-Mobid said the project's significance lies less in its immediate impact on property prices than in its potential to establish a replicable investment model.

Such a model, he noted, could gradually increase supply, strengthen competition and contribute to greater price stability across Riyadh's real estate market.

Diversifying Real Estate Supply

Real estate developer Ahmed Omar Basoudan said the importance of these contracts extends beyond simply making land available to investors.

They also create opportunities to develop integrated real estate assets combining residential, commercial, office and recreational uses, increasing the economic value of land and improving its utilization.

Speaking to Asharq Al-Awsat, Basoudan explained that bringing design, construction, operation and maintenance together under a single investment framework allows for more integrated developments.

It also creates a stronger link between construction quality, operational efficiency and long-term sustainability.

At the broader market level, he said, the model could help diversify real estate offerings, particularly in major cities experiencing rapid urban expansion and rising demand for residential, commercial and office space.

The participation of new developers and operators could also strengthen competition and improve the quality of projects and services.

Moreover, the approach could create integrated mixed-use urban destinations that meet residents' needs and support economic activity, rather than relying solely on conventional real estate development.

 

Replicating the Model

 

According to Basoudan, the success of this investment model will depend on how effectively contracts are structured, how risks are allocated between government entities and investors, and how clearly development, operation and maintenance obligations are defined.

Equally important, he said, is striking an appropriate balance between investment returns and the public interest.

Basoudan believes extending the model to other municipalities and regions could create an additional channel for attracting domestic and international investment.

It could also strengthen private-sector participation in urban development, in line with Saudi Vision 2030 objectives to diversify the economy and improve the efficiency of government asset management.


Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
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Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.