Oil-rich UAE to burn waste to make power

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With rubbish piling up in the desert, the United Arab Emirates has found a new way to get rid of its trash — incinerators that will turn it into electricity.

The UAE, one of the world’s top oil NSE -1.70 % exporters, is building the Gulf region’s first waste-to-power plants to ease its chronic trash problem and, at the same time, its reliance on gas-fuelled electricity stations.

Green groups are unconvinced. They say advanced recycling, composting and changing habits amid grossly wasteful rates of consumption would be better for the environment, warning of pollution risks from the greenhouse gas-intensive incinerators too.

But engineer Nouf Wazir, from waste management company Bee’ah, argues they are a way to make use of refuse that cannot be recycled.

“Not everyone knows that waste has value,” said Wazir, a senior engineer on the project. The Sharjah facility is expected to launch this year, burning more than 300,000 tonnes of waste per year to power up to 28,000 homes.

In the neighbouring emirate of Dubai, another plant is being developed at a cost of $1.2 billion, according to Hitachi Zosen Inova, one of the partner companies.

When it is completed in 2024, the Dubai plant will be one of the largest in the world, capable of gobbling up 1.9 million tonnes of waste per year — about 45 percent of the household waste currently produced in the emirate.

As the UAE has mushroomed from a desert outpost to a thriving business hub, waste has multiplied.

So has power use, which has soared 750 percent since 1990 according to the International Energy Agency.

Now with about 10 million people, five times the population of 30 years ago, the wealthy UAE uses more electricity and creates more waste per head than almost any other country.

Authorities put waste production at 1.8 kilos (four pounds) per person per day.

In the UAE, “people consume a lot, and they throw away a lot”, said Riad Bestani, founder of ECOsquare, a Dubai-based consultancy specialising in eco-friendly waste management.

Landfills are strewn across the country. In Dubai alone, six cover an area of about 1.6 million square meters (395 acres), according to the municipality.

In the absence of other solutions, it estimates that landfills will occupy 5.8 million square meters of the emirate by 2041, an area the size of more than 800 football pitches.

Fees for landfills are “pretty much nonexistent, so it’s quite cheap and easy to dump all materials into the desert”, said Emma Barber, director of Dubai-based DGrade, which designs clothes and accessories from recycled plastic bottles.

The UAE has set about diversifying its electricity generation, more than 90 percent of which comes from gas-powered plants.

Last year, the UAE inaugurated the Arab world’s first nuclear plant and, making use of its location in one of the world’s hottest regions, it has significant solar power resources.

In the run-up to the COP26 climate summit in Glasgow, which started on Sunday, the UAE said it was targeting carbon neutrality by 2050.

While supporters of the plants say the incinerators carry minimal pollution risks, activists say other approaches would be better for the environment.

According to Janek Vahk of Zero Waste Europe, incinerating rubbish may be “easier” than having space-consuming landfills, but it is far from green.

“The most beneficial for the climate (and) the environment would be recoverage” and composting, Vahk told AFP.

“But this is not really happening because… it’s easier to simply burn it than to separate, sort and recycle.”

The Brussels-based NGO has called for a moratorium on new waste incinerators and the phasing-out of old ones by 2040, warning the electricity they produce is greenhouse-gas intensive — even compared to fossil fuels.

Vahk argues that incineration is “more efficient” in colder Nordic countries when the heat produced is also harnessed, but not in hot deserts.

“If you only produce electricity, the greenhouse gases’ intensity of this energy is very high,” Vahk said, adding that incinerators are also “very expensive to build — and they need to have continuous input to run.”

Rami Shaar, co-founder of Washmen, a Dubai-based start-up that collects customers’ laundry and recycling at the same time, said waste-to-electricity is not “necessarily green energy”.

“It’s a bit of a solution towards not extracting more oil… but it doesn’t solve the full problem,” he said.

Source:https://economictimes.indiatimes.com/news/international/uae/oil-rich-uae-to-burn-waste-to-make-power/articleshow/87521153.cms

The UAE’s Ministry of Finance has successfully closed its offering of a $4 billion US dollar-denominated multi-tranche sovereign bond package.

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The bonds, which is comprised of medium and long-term tranches, captured the demand of international and regional investors. Global books peaked at over $22.5 billion, a statement said.

The announcement was made during a virtual media briefing where Younis Haji Al Khoori, Undersecretary of Ministry of Finance previewed the results of the subscription to the country’s sovereign bonds.

The 10-year tranche bonds were sold at $1 billion at a spread of 70bps over US Treasuries while the 20-year tranche bonds were sold at $1 billion at a spread of 105bps over US Treasuries. The $2 billion 40-year Formosa tranche is debt sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.

Al Khoori said: “The government bond tranches offered raised $4 billion, while global books peaked at $22.5 billion… The order book momentum increased the deal size to $4 billion from the initial target of $3 billion.”

He added: “The UAE issued these bonds to contribute to the development of the bond market and find investment alternatives for investors.”

The issuance come as the International Monetary Fund forecasts the UAE’s economy to grow by 3.1 percent in 2021, and the Central Bank of the UAE estimates a 4.2 percent growth in 2022.

The Ministry of Finance authorised Abu Dhabi Commercial Bank, BofA Securities, Citigroup Global Markets Limited, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, JP Morgan Securities, Mashreqbank and Standard Chartered Bank to be lead managers and bookrunners to arrange subscription sessions with international investors.

Source:https://www.arabianbusiness.com/industries-banking-finance/469691-huge-investor-demand-seen-as-uae-closes-4bn-sovereign-bond

Kuwaiti aircraft leasing major secures $75m financing deal

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Kuwait-based ALAFCO Aviation Lease and Finance Company has signed a financing agreement worth $75 million to strengthen its operations as the travel industry looks to rebound from the global coronavirus pandemic.

The Islamic Corporation for the Development of the Private Sector (ICD) and ALAFCO signed the four-year syndicated secured financing agreement with $50 million from ICD making it the lead financier in the deal.

The agreement comes after the aviation sector has been one of the hardest hit sectors during the pandemic.

Ayman Sejiny, CEO of ICD, said: “We are very pleased to support ALAFCO in its efforts as a leading player in the aircraft leasing market following Islamic finance principles.”

Adel Ahmad Albanwan, CEO of ALAFCO said: “The agreement demonstrates the confidence ICD has in ALAFCO’s business model, its long-term sustainability and the outlook of the aviation sector.”

ALAFCO is an aircraft leasing company based in Kuwait and is listed on the Kuwait Stock Exchange. It has major institutional shareholders including Kuwait Finance House (KFH), Gulf Investment Corporation (GIC) and Kuwait Airways Corporation (KAC).

Its portfolio consists of 79 Airbus and Boeing aircraft, leased to 23 airlines in 15 countries across Americas, Africa, Asia-Pacific, Europe, and the Middle East.

SOurce:https://www.arabianbusiness.com/industries-banking-finance/469702-kuwaiti-aircraft-leasing-major-secures-75m-financing-deal

Major oil producer Saudi Arabia announces net-zero by 2060

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One of the world’s largest oil NSE -0.99 % producers, Saudi Arabia, announced Saturday it aims to reach “net zero” greenhouse gas emissions by 2060, joining more than 100 countries in a global effort to try and curb man-made climate change.

The announcement, made by Crown Prince Mohammed bin Salman in brief scripted remarks at the start of the kingdom’s first-ever Saudi Green Initiative Forum, was timed to make a splash a little more than a week before the start of the global COP26 climate conference being held in Glasgow, Scotland.

Although the kingdom will aim to reduce its emissions, Prince Mohammed said the kingdom would do so through a so-called “Carbon Circular Economy” approach. That approach focuses on still unreliable carbon capture and storage technologies over efforts to actually reduce global reliance on fossil fuels. The announcement only pertains to Saudi Arabia’s efforts within its national borders, and does not impact its continued aggressive investment in oil and exporting its fossil fuels to Asia and other regions.

“The transition to net zero carbon emissions will be delivered in a manner that preserves the kingdom’s leading role in enhancing the security and stability of global energy markets, particularly considering the maturity and availability of technologies necessary to manage and reduce emissions,” a statement by the Saudi Green Initiative forum said.

The kingdom’s oil and gas exports form the backbone of its economy, despite efforts to diversify away from reliance on fossil fuels for revenue.

The global summit COP26 starting Oct. 31 will draw heads of state from across the world to try and tackle global warming and its challenges. It is being described as “the world’s last best chance ” to prevent global warming from reaching dangerous levels. The summit is expected to see a flurry of new commitments from governments and businesses to reduce their emissions of greenhouse gases.

Leaked documents first reported by the BBC emerged Thursday showing how Saudi Arabia and other countries, including Australia, Brazil and Japan, are apparently trying to water down an upcoming U.N. science panel report on global warming. The documents are purportedly evidence of the way in which some governments’ public support for climate action is undermined by their efforts behind closed doors.

Saudi Arabia has pushed back against the recommendation that fossil fuels be urgently phased out of the energy sector. Instead, the kingdom is touting, thus enabling nations to continue burning fossil fuels by sucking the resulting emissions out of the atmosphere, according to Greenpeace, which obtained the documents.

The kingdom repeatedly seeks to have the report’s authors delete references to the need to phase out fossil fuels, as well as the panel’s conclusion that there is a “need for urgent and accelerated mitigation actions at all scales”, according to the leaked documents.

Earlier this month, the United Arab Emirates – another major Gulf Arab energy producer – announced it too would join the “net zero” club of nations with a target to reach net-zero emissions by 2050.

Source:https://economictimes.indiatimes.com/news/international/saudi-arabia/major-oil-producer-saudi-arabia-announces-net-zero-by-2060/articleshow/87221710.cms

Saudi Arabia launches national infrastructure fund with BlackRock

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Saudi Arabia, advised by the world’s largest fund manager BlackRock, has launched a national infrastructure fund to support up to 200 billion riyals ($53.32 billion) in projects over the next decade, state news agency SPA said on Monday.

The National Infrastructure Fund will invest in areas such as water, transportation, energy, and health, contributing to Saudi Arabia’s plans to transform the economy and make it less reliant on oil revenue.

The fund is one of the development funds of the National Development Fund (NDF), a body created in 2017 with the aim of supervising and linking together several economic development funds previously spread between various ministries and agencies.

Source:
https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-arabia-launches-national-infrastructure-fund-with-blackrock/articleshow/87254112.cms

Saudi Arabia licenses 44 companies to open regional headquarters in Riyadh

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Saudi Arabia said on Wednesday it had licensed 44 international companies to set up regional headquarters in the capital Riyadh under the kingdom’s push to become a regional commercial hub and vie for foreign capital and talent.

Among the 44 companies are multinationals in sectors including technology, food and beverages, consulting and construction including Unilever, Baker Hughes and Siemens, a press release said.

The world’s top oil exporter and largest Arab economy in February said it would give foreign firms until the end of 2023 to set up headquarters in the country or risk losing out on government contracts.

The move, part of efforts by Crown Prince Mohammed bin Salman to wean the economy off oil by creating new industries that also generate jobs for Saudis, has put the kingdom in competition with regional business hub the United Arab Emirates.

The new headquarter establishments would add 67 billion riyals ($18 billion) to the economy and provide around 30,000 job opportunities by 2030, the President of the Royal Commission for Riyadh City, Fahd al-Rasheed, said in a statement.

Rasheed told Reuters he expects the 44 firms to move to Riyadh within a year, adding that some had already done so. He said the target was for 480 companies by 2030.

The kingdom earlier this year said that 24 companies had signed agreements to establish main regional offices – including PepsiCo, Schlumberger, Deloitte, PwC and Bechtel – rather than oversee operations remotely from the UAE’s Dubai emirate.

European law firm DWF Group said on Wednesday that Riyadh would become its regional headquarters for business services.

Rasheed has said the move is not aimed at dismantling corporate operations elsewhere.

“We are simply saying – you need to have your regional headquarter here because this is not simply a contract economy that you come in and come out. We want to see you with us for the long term,” he told Reuters on Monday.

UNCERTAINTIES LINGER
Rasheed defined regional headquarters as housing all major decision-making functions, but it was unclear how all firms themselves are defining Saudi headquarters.

Some people in the business community say companies are unlikely to shut operations in the UAE and may simply shift some operations to Saudi.

Danish wind turbine maker Vestas, not among the list of 44 firms, told Reuters in a statement that it was moving its Middle East sales h ..

Saudi Arabia has launched economic and social reforms aimed at making the kingdom an easier place to live and work in and has cut the red tape that long deterred companies.

source:Saudi Arabia has launched economic and social reforms aimed at making the kingdom an easier place to live and work in and has cut the red tape that long deterred companies.

Source:
https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-arabia-licenses-44-companies-to-open-regional-headquarters-in-riyadh/articleshow/87304648.cms

Saudi Arabia could go carbon-neutral before 2060, says Prince Abdulaziz bin Salman

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Saudi Arabia could go carbon neutral before its 2060 target if technology evolves quickly enough, its energy minister said on Wednesday, days before the COP26 climate summit.

Prince Abdulaziz bin Salman said new processes enabling the “circular carbon economy” — a concept where waste carbon is captured and repurposed — were key to the world’s top oil exporter achieving net zero.

The desert kingdom, also one of the world’s biggest polluters, is heavily promoting the virtues of the circular carbon economy (CCE) at the Future Investment Initiative conference in Riyadh, an elite business gathering dubbed “Davos in the desert”.

“CCE first and foremost depends on the evolution of technology,” the minister told the conference, describing 2060 as a “dynamic baseline”.

“Actually, if technology evolves even faster, we may not have to wait until 2060. It could bring it earlier.”

On Saturday, Saudi Arabia pledged to go carbon neutral by 2060. Two days later it announced a billion-dollar contribution to initiatives to fund the circular carbon economy and provide “clean” fuel for the world’s poor.

The United Nations says more than 130 countries have set or are considering a target of reducing greenhouse gas emissions to net zero by mid-century, an objective it says is “imperative” to safeguard a liveable climate.

World leaders will gather in Glasgow from Sunday for the UN’s COP26, a historic summit billed as humanity’s “last best chance” to get devastating climate change under control.

“The most daunting challenge that we are all faced with is climate change,” the energy minister said, before adding that he did not expect any drop in demand for oil.

“I still argue it would not happen,” he said.

Oil production remains the fundamental plank of Saudi energy policy. This month, state-owned giant Saudi Aramco said it planned to raise production by a million barrels a day by 2027.

Source:
https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-arabia-could-go-carbon-neutral-before-2060-says-prince-abdulaziz-bin-salman/articleshow/87308029.cms

Saudi Arabia, 20 years after 9/11: ‘A country in the making’

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The Saudi Arabia of today is far different from the Saudi Arabia of Sept. 11, 2001.

All but four of the 19 hijackers on 9/11 were Saudi citizens, and the Saudi kingdom was the birthplace of Osama bin Laden, the head of al-Qaida and mastermind of the attack 20 years ago. In the two decades since then, Saudi Arabia has confronted al-Qaida on its own soil, revamped its textbooks, worked to curb terror financing andpartnered with the United States to counter terrorism.

It wasn’t until the last five years, though, that the kingdom began backing away from the religious ideology upon which it was founded and which it espoused within and outside its borders — Wahhabism, a strict interpretation of Islam that helped spawn generations of mujahedeen.

For countless numbers of people in the United States, Saudi Arabia will forever be associated with 9/11, the collapse of the World Trade Towers and the deaths of nearly 3,000 people.

To this day, victims’ families are trying to hold the Saudi government accountable in New York and have pushed President Joe Biden to declassify certain documents related to the attacks, despite Saudi government insistence that any allegation of complicity is “categorically false.” Victims of a 2019 shootin at a Florida military base and their families are also suing Saudi Arabia for monetary damages, claiming the kingdom knew the Saudi Air Force officer had been radicalized and could have prevented the killings.

Saudi Arabia’s close partnership with the United States, including the presence of American troops in the kingdom after the first Gulf War, made its leadership a target of extremist groups.

“It is important to realize that the terrorists who struck the U.S. on September 11 have also targeted Saudi Arabia’s people, leadership, military personnel and even our holiest religious sites in Mecca and Medina on multiple occasions,” Fahad Nazer, the Saudi Embassy spokesperson in Washington, told The Associated Press. He said Saudi-U.S. counterterrorism work has saved thousands of lives.

source:https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-arabia-20-years-after-9/11-a-country-in-the-making/articleshow/86113876.cms

Saudi economy grows 1.8% in Q2 but non-oil sector loses steam

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Saudi Arabia’s economy posted a 1.8% annual growth in the second quarter, according to official gross domestic product (GDP) estimates, but the non-oil sector of the world’s largest oil exporter lost steam.

The figures, published on Monday by the General Authority for Statistics, revised upwards earlier estimates of a 1.5% overall growth in the second quarter, but they also revised non-oil growth to 8.4% from an earlier 10.1%.

On a quarter-on-quarter basis, the Saudi economy grew 0.6% compared to the first three months of the year, with the oil sector fuelling the growth.

Saudi Arabia was hit hard last year by the twin shock of the COVID-19 pandemic and record-low oil prices. The economy has rebounded this year, however, amid easing coronavirus-related restrictions, a vaccine roll-out and higher crude prices.

The GDP segment comprising wholesale and retail trade, restaurants and hotels, grew 16.9% in Q2 compared to the same quarter last year, although declining slightly when compared to the first three months of this year.

The pent-up demand that boosted the rebound was expected to lose some steam, economists have said.

“Preliminary GDP data for 2Q2021 released in August points to some moderation in the pace of sequential non-oil GDP growth. This normalisation is to be expected as the boost to activity from the initial reopening of the economy, trapped spending and pent-up demand wanes,” Monica Malik, chief economist at Abu Dhabi Commercial Bank, said in a note last week.

A domestic investment programme led by the Public Investment Fund, Saudi Arabia’s main sovereign investor, is expected to be the main driver of economic growth going forward, she said.

London-based Capital Economics has said the recovery in the non-oil sector has lost momentum in recent months, as opposed to the oil sector, which strengthened due to increased output.

“With OPEC+ agreeing … to raise oil output further, this will mechanically support stronger GDP growth and more than offset the easing of activity in the non-oil sector,” it said in a note last week.

source:https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-economy-grows-1-8-in-q2-but-non-oil-sector-loses-steam/articleshow/86162233.cms

Saudi imports from UAE drop 33% in July after new trade rules

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The value of Saudi Arabia’s imports from the United Arab Emirates (UAE) in July fell by 33% month on month, official data showed on Wednesday, after the kingdom imposed new rules in July on imports from other Gulf countries.

Imports from neighbouring UAE fell to 3.1 billion riyals ($827 million) in July from 4.6 billion riyals in June, according to data from the General Authority for Statistics. On an annual basis, UAE imports declined by about 6%.

In July, Saudi Arabia amended its rules on imports from other Gulf Cooperation Council (GCC) countries to exclude goods made in free zones or using Israeli input from preferential tariff concessions, a move seen as a challenge the UAE’s status as the region’s trade and business hub.

Despite being close allies, Saudi Arabia and the UAE are competing to attract investors and businesses.

In Dubai on Wednesday, electronic signs celebrated UAE-Saudi friendship ahead of the Saudi national day on Thursday, but the two countries’ national interests have increasingly diverged, including in their relations with Israel and Turkey.

Saudi Arabia’s new trade rules excluded from the GCC tariff agreement goods made by companies with a workforce made up of less than 25% of local people – a problem for a country like the UAE where the population is mostly made up of foreigners.

It also said all goods made in free zones in the region would not be considered locally made – a blow to the UAE where free zones are a major driver of the economy.

The monthly drop in UAE import value was by far the sharpest decline this year, the statistics authority data showed.

The UAE slipped to third-main import country in July after China and the United States, while it was second in June.

“The July data might have been particularly volatile with regards to creating the required paperwork … The upcoming months might provide a clearer indication of the new Saudi regulations on UAE exports,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

The value of Saudi Arabia’s overall exports jumped 79.6% compared with July 2020 when international trade was hit by the COVID-19 pandemic.

The increase was mainly because of higher oil exports, which increased 112.1% year on year, the authority said.

Source:https://economictimes.indiatimes.com/news/international/saudi-arabia/saudi-imports-from-uae-drop-33-in-july-after-new-trade-rules/articleshow/86421499.cms