Advanced Strategic Partnership between London, Riyadh in Clean Energy, Climate

UK Special Representative for Climate Rachel Kyte during her visit to Riyadh. (Asharq Al-Awsat)
UK Special Representative for Climate Rachel Kyte during her visit to Riyadh. (Asharq Al-Awsat)
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Advanced Strategic Partnership between London, Riyadh in Clean Energy, Climate

UK Special Representative for Climate Rachel Kyte during her visit to Riyadh. (Asharq Al-Awsat)
UK Special Representative for Climate Rachel Kyte during her visit to Riyadh. (Asharq Al-Awsat)

Relations between Saudi Arabia and the UK have witnessed a qualitative leap in cooperation in climate and clean energy. The trade exchange between them has reached £16 billion and new partnerships worth more than £1.2 billion have been launched in clean energy alone.

UK Special Representative for Climate Rachel Kyte stressed that London and Riyadh have come a long way in bolstering the strategic partnership in environment and climate technologies.

In remarks to Asharq Al-Awsat, she said: “The UK Government made a commitment to climate leadership when it was elected last summer, and we are working to broaden and deepen our partnership with a number of countries on clean energy and tackling climate change.”

“The UK sees Saudi Arabia as an obvious partner in these efforts, given the Kingdom’s deep investment in clean energy solutions and in building resilience both here in Saudi Arabia and across the world,” she stated.

“The opportunities for clean growth between our two countries are immense. UK businesses are already aware of the potential in Saudi Arabia, and Saudi investors are taking advantage of the UK’s net zero economy, which is growing three times faster than the wider economy,” she went on to say.

“In terms of investment, the numbers speak for themselves. In 2024, bilateral trade topped £16 billion, and during Prime Minister Keir Starmer’s visit last December, new clean energy partnerships worth over £1.2 billion were announced,” she added.

Moreover, Kyte said that a “key area of partnership for the UK and Saudi Arabia is the clean cooking agreement we signed back in February. The visit has allowed the UK to explore how Saudi Arabia is rolling out its clean cooking projects, how these efforts align with broader international climate finance goals and to deepen our dialogue on these issues.”

She highlighted Saudi Arabia’s Forward 7 initiative, which she said has the potential to be transformative in closing the clean cooking gap and achieving Sustainable Development Goal 7 by 2030, ensuring access to affordable, reliable, sustainable and modern energy for all.

Additionally, the UK signed a £3.5 million co-financing agreement with the Islamic Development Bank to improve access to clean energy, boost agricultural productivity, and promote green technologies in Jordan and Yemen, continued Kyte. These are countries facing unique challenges - Jordan as a major refugee host, and Yemen as one of the most fragile states globally.

Furthermore, she said Saudi Arabia’s commitment to invest 2.5% of GDP in research and development by 2040 “opens up exciting avenues for UK universities and companies to collaborate on climate innovation. Together, we’re turning shared priorities into real-world impact, supporting communities, advancing technology, and accelerating progress toward our climate goals.”

“Climate change is one of the defining challenges of our time, with far-reaching environmental, social, and economic consequences. From rising temperatures and extreme weather to biodiversity loss and water insecurity, communities everywhere are feeling the impact. No country is immune,” she stressed.

“One of the most immediate threats is extreme heat, an issue I care deeply about. Recent summers have shattered temperature records across Europe, the US, India, and the Middle East. In Europe alone, heat is now the leading cause of climate-related deaths – an estimated 175,000 lives lost annually. These events underscore the urgency of action and the need to protect vulnerable populations,” she told Asharq Al-Awsat.

Despite the challenges, Kyte said the world is moving on the solutions to this crisis, through action on clean energy and resilience, because countries can see it is in their national interest. Rapid cost falls are driving clean energy deployment globally – as others embrace it as a route to energy security, good jobs and growth. “This is the investment story of the century, with $2 trillion invested in clean energy last year.”

“Thanks to these shifts and the power of multilateralism, we are making progress on climate action. We need to go further and faster, but we must not overlook the progress we’ve made,” Kyte said.



TotalEnergies Posts 17% Drop in Net Profit to $13.1 Bn

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
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TotalEnergies Posts 17% Drop in Net Profit to $13.1 Bn

FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo
FILE PHOTO: The logo of French oil and gas company TotalEnergies is seen on a building in Rueil-Malmaison, near Paris, France, April 14, 2025. REUTERS/Stephanie Lecocq/File Photo

French energy giant TotalEnergies said Wednesday that its net profit fell 17 percent last year, reflecting declines in oil prices even as it increased production.

Profit was down to $13.1 billion, but the company will raise its final 2025 dividend payout by 5.6 percent, to 3.40 euros per share.

"With cash flow stable at $7.2 billion, TotalEnergies once again demonstrates its ability to offset lower hydrocarbon prices thanks to accretive growth in its upstream production of 3.9 percent in 2025, exceeding the guidance of above 3 percent," chief executive Patrick Pouyanne said in a statement.

According to AFP, the company will also continue to buy back its own shares to support its stock price, spending $3 billion to $6 billion this year assuming oil prices stay in a range of $60 to $70 a barrel.

Like other oil majors, TotalEnergies is grappling with low oil and gas prices as a result of higher output by OPEC+ nations since last year.

They are looking to regain market share amid strong competition from producers outside the group, such as the United States, Canada and Guyana.

Pouyanne said TotalEnergies invested $17.1 billion last year, of which 37 percent went to new oil and gas projects.

He also said $3.5 billion was invested in "low-carbon energies", mainly electricity.

Last October, TotalEnergies was convicted by a French court of "misleading commercial practices" by overstating its climate pledges and ordered it to remove some claims.

Activists called it the first such ruling worldwide against a major oil company for climate misinformation.


EU Makes 150-Million-Dollar Grant to Egypt’s Energy Sector

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
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EU Makes 150-Million-Dollar Grant to Egypt’s Energy Sector

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government
The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo. Photo: Egyptian government

Egypt and the European Union (EU) have signed a grant agreement worth €90 million ($107.2 million) that will be managed by the European Investment Bank (EIB) to enhance investments in the electricity grid in Egypt and develop renewable energy capabilities.

A separate €35 million ($41.7 million) grant agreement was signed on Tuesday for Norway’s Scatec to support its green ammonia project in Ain Sokhna.

The signing of the agreements took place during the “Egypt Sustainable Energy Outlook 2040” conference co-hosted by the EU and the Egyptian government in Cairo.

Egyptian Minister of Planning, Economic Development, and International Cooperation Rania Al-Mashat said the transition toward sustainable, secure, and efficient energy systems represents one of the main drivers for achieving comprehensive development in Egypt.

Al-Mashat hailed the partnership between Egypt and the EU, as well as their shared commitment to supporting the energy transition, especially in light of the accelerating global changes that make it necessary to strike a balance between economic growth, energy security, and emissions reduction.

She said the Egyptian state has adopted an ambitious vision for the energy sector through 2040, based on expanding renewable energy sources, enhancing energy efficiency, and maximizing the use of diverse resources. This would strengthen Egypt’s position as a regional energy hub in the Eastern Mediterranean and support the achievement of the Sustainable Development Goals.

She also said the ministry plays a central role in coordinating international partnerships and directing investments toward national priorities, especially energy transition, in close cooperation with European institutions such as EIB and European Bank for Reconstruction and Development (EBRD).

She added that the Nexus of Water, Food, and Energy (NWFE) platform serves as a leading national model linking water, food, and energy sectors, having mobilized about $5 billion over three years to deliver 4.2 GW of private-sector renewable energy projects and strengthen Egypt’s role in climate finance and green development.

In a related development, Energean International CEO Nicolas Katcharov told Reuters on Tuesday that Egypt has directed international oil companies to double production by 2030, saying existing contracts must be revised to spur new investment.

Katcharov said the low gas prices that supported earlier development phases had "expired,” making it necessary to ‌update terms to ‌encourage companies to ‌deploy ⁠capital and ‌boost production at brownfield sites.

He also said gas flows from Israel to Egypt had risen, with the pipeline ⁠now operating at full capacity.


Saudi Industrial Production Ends 2025 with Strong 8.9% Growth

Workers are seen at a Saudi Aramco facility. (Aramco)
Workers are seen at a Saudi Aramco facility. (Aramco)
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Saudi Industrial Production Ends 2025 with Strong 8.9% Growth

Workers are seen at a Saudi Aramco facility. (Aramco)
Workers are seen at a Saudi Aramco facility. (Aramco)

Saudi Arabia’s industrial sector posted an exceptional performance at the end of 2025, with the Industrial Production Index recording annual growth of 8.9 percent in December compared with the same month a year earlier, according to data released by the General Authority for Statistics (GASTAT).

The increase reflects a broad-based recovery in key economic activities, led by mining and quarrying as well as manufacturing, reinforcing the sector’s role as a major pillar of the national economy.

Oil production

Mining and quarrying was the main driver of the overall index, posting a strong annual increase of 13.2 percent by December. The surge was largely attributed to higher crude oil output, which rose to 10.1 million barrels per day, compared with 8.9 million barrels per day in the same period last year.

On a monthly basis, the index remained relatively stable, edging up by just 0.3 percent from November.

Manufacturing

The manufacturing sector also showed resilience, recording annual growth of 3.2 percent, supported by strong performance in chemical and food-related activities.

The manufacture of chemicals and chemical products emerged as a key growth engine, rising by 13.4 percent, followed by food manufacturing, which grew by 7.3 percent year on year.

Month on month, the manufacturing index maintained positive momentum with a 0.3 percent increase. Food manufacturing alone jumped by 9.6 percent, while chemical products rose by 2.8 percent compared with November 2025.

Utilities and public services

In utilities, water supply, sewerage, waste management, and remediation activities posted robust annual growth of 9.4 percent.

In contrast, electricity, gas, steam, and air-conditioning supply declined by 2.5 percent compared with December 2024.

On a monthly basis, both sectors contracted, with water-related activities falling by 7.2 percent and electricity and gas by 13.1 percent compared with November 2025, suggesting the impact of seasonal factors or scheduled maintenance.

Oil and non-oil balance

Overall, the data point to a balanced distribution of growth across Saudi Arabia’s economic pillars. Oil-related activities recorded annual growth of 10.1 percent, while non-oil activities expanded by a steady 5.8 percent.

In the short term, non-oil activities outperformed on a monthly basis, rising by 0.4 percent, while oil activities slipped slightly by 0.3 percent, underscoring the Kingdom’s ongoing economic diversification strategy.