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ACWA Power inks $1.78bn agreements to boost renewable energy, R&D

ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
Deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa. Supplied
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Updated 30 October 2024

ACWA Power inks $1.78bn agreements to boost renewable energy, R&D

ACWA Power inks $1.78bn agreements to boost renewable energy, R&D
  • First agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities
  • ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp.

RIYADH: Saudi utility giant ACWA Power signed four agreements valued at SR6.69 billion ($1.78 billion) on the first day of the eighth Future Investment Initiative in Riyadh. 

The deals span corporate financing, renewable energy projects, and research partnerships across the Gulf Cooperation Council, China, Central Asia, and North Africa, highlighting the company’s expanding global reach. 

The first agreement is a $690 million framework deal with the National Bank of Kuwait for general corporate finance facilities, supporting ACWA Power’s project pipeline in Ƶ, Kuwait, and other target markets. 

Additionally, ACWA Power secured a $240 million Shariah-compliant equity bridge loan from the International Finance Corp. to fund two solar projects in Uzbekistan. 

“These agreements exemplify the extensive breadth of our portfolio and the diverse initiatives we pursue. By collaborating with a variety of partners, we enhance our capabilities, particularly in the areas of innovation and research within our key sectors,” said Marco Arcelli, CEO of ACWA Power. 

Uzbekistan has become a key market for ACWA Power, which has been active in the Central Asian nation’s renewable energy sector in recent years. 

Located in Samarkand, the Sazagan 1 and 2 projects each include 500 megawatts of solar photovoltaic and 334 MW of battery energy storage systems. ACWA Power noted that both projects are expected to commence commercial operations between the third quarter of 2025 and the fourth quarter of 2026. 

The company also signed a joint development agreement with Gotion Power Morocco, a battery solutions provider. Under this agreement, ACWA Power will develop a 500 MW wind power plant incorporating a 2,000 MWh battery energy storage system. 

The project will supply energy to Gotion Power’s battery manufacturing plant in Morocco, slated to start production in the first half of 2026. The initial investment for the project is $800 million. 

ACWA Power also signed a $54 million research and development agreement with China’s Lujiazui Administration Bureau to establish an R&D center in Shanghai. The center will focus on advancing technologies in solar, wind, energy storage, green hydrogen, and desalination. 

“Such strategic alliances reinforce ACWA Power’s dedication to its mission of delivering affordable and reliable power and water solutions on a global scale, thereby strengthening our role in shaping a sustainable future,” concluded Arcelli. 


Oman joins World Free Zones Organization to shore more foreign investment

Oman joins World Free Zones Organization to shore more foreign investment
Updated 20 sec ago

Oman joins World Free Zones Organization to shore more foreign investment

Oman joins World Free Zones Organization to shore more foreign investment
  • Membership will support efforts to improve operational efficiency and develop more targeted marketing strategies
  • It will also help improve competitiveness of territories OPAZ oversees

RIYADH: Oman’s free zones are set to attract greater foreign investment after signing up to a global network designed to boost the economic areas.

The Public Authority for Special Economic Zones and Free Zones said its membership in the World Free Zones Organization will help improve the competitiveness of the territories it oversees, including industrial cities and free zones, while opening new channels to promote them as flexible and investor-ready destinations with advanced infrastructure.

Free zones are designated areas that offer businesses incentives such as tax exemptions, full foreign ownership, and simplified customs procedures. These districts are designed to attract investment, boost exports, and support economic diversification by providing a competitive and flexible environment for companies to operate.

They are increasingly central to economies in the Middle East, with hubs like Dubai’s Jebel Ali, Riyadh’s Special Integrated Logistics Zone, and Egypt’s Suez Canal Economic Zone driving trade and investment.

“Through this international partnership, the authority seeks to expand its network of economic relations and benefit from the latest global trends in the management and development of special economic zones, free zones, and industrial cities,” Oman News Agency reported.

This comes as Oman’s special economic zones attracted $43.16 billion in investments during the first half of 2023, driven by major projects in Sohar, Salalah, and Duqm, supported by a favorable investment climate fostered by OPAZ and the government’s diversification strategy.

By joining the organization, which brings together more than 1,600 zones and economic institutions from over 140 countries, the authority will be able to exchange expertise and strengthen its operational capabilities to keep Oman’s zones competitive globally.

The membership will also support efforts to improve operational efficiency and develop more targeted promotion and marketing strategies to attract high-value projects, ONA said.

The body currently oversees 23 operating special economic zones, free zones, and industrial cities across Oman. These districts attracted cumulative investments totaling approximately 21 billion Omani rials ($54.5 billion) by the end of 2024, reflecting their growing appeal to investors.

The World Free Zones Organization is a network that includes free zones, multinational corporations, and industry stakeholders committed to fostering global trade and investment.

Across the wider Middle East and North Africa region, free zones have become critical enablers of economic diversification and foreign direct investment.

The UAE is home to some of the most prominent examples, including Jebel Ali Free Zone, which hosts more than 9,000 companies, and Abu Dhabi’s Khalifa Industrial Zone, which supports large-scale manufacturing and logistics operations.

In Ƶ, the King Abdullah Economic City and the Special Integrated Logistics Zone in Riyadh have emerged as strategic hubs supporting Vision 2030 objectives, while Egypt’s Suez Canal Economic Zone has attracted global interest as a key gateway for trade and industry.


UAE-led AI pact aims to narrow digital divide in Global South

UAE-led AI pact aims to narrow digital divide in Global South
Updated 12 min 42 sec ago

UAE-led AI pact aims to narrow digital divide in Global South

UAE-led AI pact aims to narrow digital divide in Global South

RIYADH: Artificial intelligence adoption in the Global South is set to accelerate under a new UAE-led partnership with Malaysia and Rwanda aimed at expanding ethical AI use and knowledge sharing. 

The agreement, signed under the World Economic Forum’s Center for the Fourth Industrial Revolution global network, builds on an initiative launched by the UAE and Rwanda at the 2024 WEF Annual Meeting in Davos, according to a press release. 

The partnership comes amid rising global concern that emerging technologies could exacerbate inequality. The UN estimates the AI market will reach $4.8 trillion by 2033, warning that without inclusive frameworks, the Global South risks being left behind. 

Gobind Singh Deo, minister of digital in Malaysia, said his country “is proud to join forces with the UAE and Rwanda in this visionary initiative to bridge global AI expertise and accelerate digital transformation for a more inclusive and sustainable future.” 

He added: “This partnership involving Malaysia Center4IR, C4IR UAE, and C4IR Rwanda reflects our collective goal for a future that is driven by responsible AI innovation.” 

Singh Deo expressed hope that the C4IR Network AI Fellowship Program, developed through the collaboration, would act as a crucial bridge connecting AI leaders and experts across continents. 

“By sharing knowledge, exchanging talent, and co-creating solutions, we aim to address the critical challenges and harness the immense potential of AI for the benefit of not only our nations, but the wider global community,” he added. 

The memorandum of understanding was witnessed by UAE Minister of State for Artificial Intelligence Omar Al-Olama and Malaysia’s Singh Deo. It aims to deepen South-South collaboration on technology policy, research, and skills development. 

With Malaysia now joining, the expanded C4IR AI Fellowship Program will support talent exchange, joint innovation, and responsible governance frameworks led by Global South countries. 

“This expanded partnership will help the Global South to unlock greater value from AI and Fourth Industrial Revolution applications,” said Khalfan Belhoul, CEO of Dubai Future Foundation. 

“Guided by our leadership, the UAE is committed to building and strengthening global collaboration to achieve inclusive, sustainable development through technology and knowledge sharing,” he added. 

Crystal Rugege, managing director of the Rwanda Center for the Fourth Industrial Revolution, noted that the strategic partnership complemented Rwanda’s flagship initiatives, including the AI Innovation Lab and the Global AI Summit on Africa, thereby enhancing efforts to promote cutting-edge research, knowledge transfer, and capacity building. 

“By strengthening responsible AI governance and accelerating practical AI adoption, we are committed to empowering Rwanda, our partner countries, and the global AI ecosystem to fully leverage AI for sustainable and inclusive development,” she added. 

The Global Center for the Fourth Industrial Revolution Network brings together public and private sector partners to harness emerging technologies while managing their risks. It promotes the responsible use of these technologies through a global network of independent centers.


Middle East air cargo capacity rises 1.5% despite falling demand

Middle East air cargo capacity rises 1.5% despite falling demand
Updated 27 min 4 sec ago

Middle East air cargo capacity rises 1.5% despite falling demand

Middle East air cargo capacity rises 1.5% despite falling demand
  • Performance reflects broader slowdown in global air cargo
  • Slowdown attributed to rising protectionism, including new US tariffs

RIYADH: Middle Eastern air cargo capacity grew 1.5 percent year on year in June, even as regional demand contracted by 3.2 percent due to geopolitical tensions and airspace disruptions. 

The rise in available cargo space, measured in available cargo tonne-kilometers, came amid route disruptions over parts of Iran, Iraq, Israel, and Lebanon. These factors drove the region’s second consecutive monthly contraction in cargo volumes, according to the International Air Transport Association’s latest air cargo market report.

The performance reflects a broader slowdown in global air cargo, with IATA’s mid-year forecast projecting 0.7 percent volume growth, down from 11.3 percent in 2024. 

The slowdown is attributed to rising protectionism, including new US tariffs and the rollback of de minimis exemptions on low-value imports, which could dampen e-commerce-related air freight. 

“The June air cargo data made it very clear that stability and predictability are essential supports for trade,” said Willie Walsh, IATA’s director general. 

“Emerging clarity on US tariffs allows businesses greater confidence in planning. But we cannot overlook the fact that the ‘deals’ being struck are resulting in significantly higher tariffs on goods imported into the US than we had just a few months ago,” he added. 

While the full economic impact of these trade cost barriers remains to be seen, Walsh said governments must step up efforts to make trade simpler, faster, cheaper, and more secure through digitalization. 

The Asia-North America and Africa-Asia trade lanes each contracted by 4.8 percent, while Middle East-Europe declined by 4.5 percent. In contrast, trade between Europe and Asia expanded by 10.6 percent, maintaining 28 consecutive months of growth. 

“Overall, air cargo demand grew by a modest 0.8 percent year-on-year in June, but there are very differing stories behind that number for the industry’s major players,” Walsh said. 

Trade tensions dragged North American traffic down 8.3 percent and left European growth at 0.8 percent, but Asia-Pacific defied the trend with a 9 percent expansion. 

“Meanwhile, disruptions from military conflict in the Middle East saw the region’s cargo traffic fall by 3.2 percent,” added Walsh. 

Despite the challenging backdrop, some fundamentals remain supportive. Global industrial production rose 3.2 percent year on year in May, and goods trade increased by 3.5 percent. 

Jet fuel prices in June were 12 percent lower than a year ago, easing cost pressures for carriers. 

While the global Purchasing Managers’ Index recovered to 51.2, signaling expansion, new export orders remained in contraction at 49.3. 

Adding to the complexity of the regional dynamic, Middle East airlines are simultaneously expected to post the world’s highest net profit margin in 2025 at 8.7 percent, according to IATA’s June industry forecast presented at its 81st annual general meeting in New Delhi. 

The region is projected to generate a net profit of $6.2 billion, up from $6.1 billion in 2024, and is expected to earn $27.20 per passenger, outpacing all global peers despite demand volatility and regional instability. 


Saudi economy expands 3.9% in Q2, driven by non-oil activity

Saudi economy expands 3.9% in Q2, driven by non-oil activity
Updated 31 July 2025

Saudi economy expands 3.9% in Q2, driven by non-oil activity

Saudi economy expands 3.9% in Q2, driven by non-oil activity
  • Growth in non-oil activities reached 4.7%
  • Non-oil sector contributed largest share to GDP growth, adding 2.7 percentage points

RIYADH: Ƶ’s economy expanded by 3.9 percent year on year in the second quarter of 2025, led by a strong performance in non-oil sectors, official data showed. 

According to flash estimates from the General Authority for Statistics, growth in non-oil activities reached 4.7 percent, outpacing the 3.8 percent expansion in the oil sector and a 0.6 percent rise in government services. 

The non-oil sector contributed the largest share to GDP growth, adding 2.7 percentage points, followed by oil activities at 0.9 percentage points. 

Government activities and net taxes on products each contributed 0.1 and 0.2 percentage points, respectively, to the overall expansion. 

The data aligns with the macroeconomic outlook from S&P Global Ratings, which projects Ƶ’s real GDP to grow at an average rate of 3.5 percent between 2025 and 2028, surpassing the 0.8 percent growth recorded in 2024. 

“Seasonally adjusted real GDP increased 2.1 percent in Q2/2025, compared to the previous quarter Q1/2025,” GASTAT said in its quarterly update.

“This increase was due to the largest increase in oil activities since Q3/2021, up by 5.6 percent this quarter. Non-oil activities grew by 1.6 percent while government activities recorded a decrease of 0.8 percent,” it added. 

GASTAT said oil activities accounted for 1.3 percentage points of the quarterly growth, with non-oil sectors adding 0.9 percentage point.  

However, government activities and net taxes on products each had a negative impact of 0.1 percentage point. 

Supporting the non-oil growth trend, Ƶ’s non-oil exports, including re-exports, rose to SR31.11 billion ($8.29 billion) in May, marking a 6 percent increase compared to the same month in 2024, according to preliminary data from GASTAT released last week. 

The UAE remained the top destination for the Kingdom’s non-oil goods, with exports amounting to SR9.54 billion. India was the second largest partner at SR2.78 billion, followed by China at SR2.03 billion, Bahrain at SR989.1 million, and Turkiye at SR924.7 million. 

Meanwhile, in its report titled “Saudi Credit Trends: Change in Progress,” published on July 30, S&P Global said that Vision 2030 initiatives are “set to enhance non-oil growth over the medium term,” supported by construction activity, rising consumer demand, and a broader labor force. 

Female labor force participation has more than doubled since 1999, stabilizing at 36 percent since 2022. 

S&P Global said that tourism now contributes approximately 6 percent of GDP and 14 percent of current account receipts in 2024, up from 5 percent in 2022.  

The sector is expected to grow further due to improved visa processes and a broader leisure economy.  

Despite projected fiscal deficits averaging 4.4 percent of GDP through 2028, public investments tied to Vision 2030, including major events like Expo 2030 and the 2034 FIFA World Cup, are expected to sustain economic momentum, S&P said. 


SFD signs $92.7m loan deals to support Barbados across water, housing sectors

SFD signs $92.7m loan deals to support Barbados across water, housing sectors
Updated 31 July 2025

SFD signs $92.7m loan deals to support Barbados across water, housing sectors

SFD signs $92.7m loan deals to support Barbados across water, housing sectors
  • First deal, valued at $58.5 million, aims to improve primary healthcare system
  • Second agreement, worth $34.2 million, will support urban renewal project

RIYADH: Loan agreements worth $92.7 million signed by the Saudi Fund for Development are set to boost the water, housing, infrastructure, and health sectors across Barbados.

The first deal, valued at $58.5 million, aims to improve the primary healthcare system by constructing two new medical centers and rehabilitating seven others to expand services and enhance the quality of care.

The second agreement, worth $34.2 million, will support an urban renewal project focused on water, housing, and infrastructure development to enhance flood protection and improve resilience to environmental changes, according to the Saudi Press Agency.

CEO of the SFD, Sultan bin Abdulrahman Al-Marshad, signed the deals with the Prime Minister of Barbados, Mia Amor Mottley.

This is consistent with the SFD’s history of supporting over 800 development projects, totaling $20 billion, in more than 100 countries since its inception in 1974.

SPA’s report noted: “These two agreements represent the first steps of development cooperation between the SFD and Barbados.”

It added: “This development cooperation embodies the Fund’s keenness to support small island developing states; to overcome economic, environmental and development challenges, as well as the importance of international cooperation and solidarity to achieve sustainable development goals, to contribute to enhancing social growth and economic prosperity in developing countries.”

The entity’s goal is to support sustainable progress in developing nations by offering soft loans and grants to fund key development projects. The SFD’s mission includes raising living standards, promoting economic and social advancement, and strengthening development aid through strategic partnerships.

In July, the SFD allocated $32 million to boost social infrastructure in Bosnia and Herzegovina, targeting science, technology, and higher education facilities.

At the time, the fund allotted $19 million for the construction of a Science and Technology Park and $13 million for the development and outfitting of a new student dormitory at the Borisa Starovic Public Institution Student Center in Foca, in the country’s southeastern region.

In the first nine months of 2024, the SFD supported various initiatives across the world, including a $101 million investment for the Shounter and Jagran-IV Hydropower Projects in Pakistan, a $55 million loan to bolster Turkiye’s education sector, and a $5 million grant to fund a water project in Benin.