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    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

    Arab states imported 1.73 million agricultural commodities from Egypt

    Arab states imported 1.73 million agricultural commodities from Egypt

    Wheat yield boom boosts Oman’s food security

    Wheat yield boom boosts Oman’s food security

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

    Egypt’s agriculture exports rise 17.2 percent in 5 months

    Egypt’s agriculture exports rise 17.2 percent in 5 months

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    • Business & Economy
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      Saudi: 53 new industrial licenses issued in April 2023

      Saudi: 53 new industrial licenses issued in April 2023

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

      Saudi transport authority approves 15 licensing, technical guides for railways

      Saudi transport authority approves 15 licensing, technical guides for railways

      Number of industrial decisions up by 10.56% to 356 in 2021

      Number of industrial decisions up by 10.56% to 356 in 2021

      Egypt’s macroeconomic conditions improving, says minister

      Egypt’s macroeconomic conditions improving, says minister

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

      Number of BIA passengers up by 26.90% annually YTD APRIL 2023

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      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Oman’s health ministry expected to award construction contract for two health centres in Q3

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

      Oman releases more Sultan Haitham City details

      Oman releases more Sultan Haitham City details

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Construction activity in Saudi Arabia reaches highest level in years: Survey

      Oman gears up for its first smart city

      Oman gears up for its first smart city

      Saudi real estate ‘booming’ on big office space demand

      Saudi real estate ‘booming’ on big office space demand

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        NEOM’s green hydrogen project is formally under execution: ACWA Power

        NEOM’s green hydrogen project is formally under execution: ACWA Power

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Clean energy technology manufacturing market to reach $790bln by 2030: IEA

        Total-led consortium to start drilling offshore Lebanon in September

        Total-led consortium to start drilling offshore Lebanon in September

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          Qatar: Over 700 hotel keys added in Q1

          Qatar: Over 700 hotel keys added in Q1

          Jordan’s tourism income surges 88% as visitors flock to the country

          Jordan’s tourism income surges 88% as visitors flock to the country

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

          Leisure sector in Qatar stronger after World Cup 2022

          Leisure sector in Qatar stronger after World Cup 2022

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

          Saudi to be among world’s big leisure tourism hubs by 2030

          Saudi to be among world’s big leisure tourism hubs by 2030

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        • Agrofood
          • All
          • Agriculture
          • Environment
          • Food
          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Saudi Arabia’s agricultural GDP grew 38% to $26.6bn in 2022

          Arab states imported 1.73 million agricultural commodities from Egypt

          Arab states imported 1.73 million agricultural commodities from Egypt

          Wheat yield boom boosts Oman’s food security

          Wheat yield boom boosts Oman’s food security

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia seeks $20 bln investment in food industry, aims to double exports

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Saudi Arabia’s ambitions for food production advancement supported by ICRISAT-FAO partnership

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Egypt’s agriculture exports rise 17.2 percent in 5 months

          Trending Tags

          • Business & Economy
            • All
            • Business
            • Economy
            • Finance
            • Industry
            • Technology
            • Trade
            • Transport & Logistics
            Saudi: 53 new industrial licenses issued in April 2023

            Saudi: 53 new industrial licenses issued in April 2023

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Qatar’s non-oil sector maintains growth as PMI hits 53.8 in June

            Saudi transport authority approves 15 licensing, technical guides for railways

            Saudi transport authority approves 15 licensing, technical guides for railways

            Number of industrial decisions up by 10.56% to 356 in 2021

            Number of industrial decisions up by 10.56% to 356 in 2021

            Egypt’s macroeconomic conditions improving, says minister

            Egypt’s macroeconomic conditions improving, says minister

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Number of BIA passengers up by 26.90% annually YTD APRIL 2023

            Trending Tags

            • CES 2017
            • Election Results
            • eSports
          • Construction
            • All
            • Infrastructure
            • Real Estate
            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Oman’s health ministry expected to award construction contract for two health centres in Q3

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Properties sold in May 2023 jump 114.6%, says Qatar’s PSA

            Oman releases more Sultan Haitham City details

            Oman releases more Sultan Haitham City details

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Construction activity in Saudi Arabia reaches highest level in years: Survey

            Oman gears up for its first smart city

            Oman gears up for its first smart city

            Saudi real estate ‘booming’ on big office space demand

            Saudi real estate ‘booming’ on big office space demand

            Trending Tags

            • Energy
              • All
              • Oil & Gas
              • Power & Electricity
              • Renewable Energy
              NEOM’s green hydrogen project is formally under execution: ACWA Power

              NEOM’s green hydrogen project is formally under execution: ACWA Power

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Ministry of Petroleum announces $9B investment towards oil refining and petrochemical projects

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              Oman’s huge renewable hydrogen potential can bring multiple benefits in its journey to net zero emissions

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              UN-HABITAT partners with LCEC, expanding efforts to provide responsible renewable energy solutions in Lebanon

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Clean energy technology manufacturing market to reach $790bln by 2030: IEA

              Total-led consortium to start drilling offshore Lebanon in September

              Total-led consortium to start drilling offshore Lebanon in September

              Trending Tags

              • Hospitality
                Qatar: Over 700 hotel keys added in Q1

                Qatar: Over 700 hotel keys added in Q1

                Jordan’s tourism income surges 88% as visitors flock to the country

                Jordan’s tourism income surges 88% as visitors flock to the country

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Dubai’s hotel stock hits 150,000 keys as tourist influx from India, Russia, Oman buoys hospitality sector

                Leisure sector in Qatar stronger after World Cup 2022

                Leisure sector in Qatar stronger after World Cup 2022

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

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              Are you ready for the Middle East’s solar gold rush?

              Financial Sense

              April 11, 2017
              in Power & Electricity, Renewable Energy
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              On April 6th, Middle Eastern nations announced an ambitious energy project to establish an Arab Common Market for electricity. The energy ministers from 14 Arab countries signed a memorandum of understanding, confirming their commitment to the development of an integrated electricity supply system for the Middle East. This announcement in itself is very important, yet it also comes at time of even larger changes in energy in the Middle East: solar power. A future common electricity market will see an ever increasing role for solar power as countries across the Middle East are heavily investing in renewables.

              Ongoing low oil prices together with rising demographic concerns are increasingly motivating MENA states to invest in a more secure and diversified energy portfolio. With an estimated population of 692 million by 2050, the MENA region will require a substantial increase in generating capacity to meet future energy demands. This point has been hit home this year as Fitch has warned that most oil producers will not break even in 2017, based on a predicted average price of $52.50 per barrel. Most MENA countries need substantially higher prices (ex: Saudi Arabia needs $74) to balance their budgets.

              Solar investment makes economic and security sense
              These fiscal pressures risk instability, both in the short and long-term, not only due to general budgetary concerns, but the risk of energy-related social unrest. Erratic domestic electricity supply has been a main instigator of social unrest in Iraq, Lebanon and Egypt. To this end a common electricity market and grid would help mitigate localized energy disturbances, aiding both economic and social stability.

              Consequently, declining oil reserves, climate change, and hydrocarbon price instability mean that the Middle East will need to look elsewhere for future energy increases. A prime candidate is solar power, as the world’s deserts receive enough energy in six hours to meet the globe’s annual energy needs.

              It appears that MENA governments have taken heed, as “over the past year we have seen huge investment in renewables […] It seems clear that this is a trend set to continue as nations in the Middle East strive to reduce their carbon footprints and increase generation capacity,” notes Anita Mathews, director at Informa Energy Group. In the GCC alone, which accounts for 47% of MENA generating capacity, some $316 billion worth of investments are needed by 2020.

              Across the MENA region, hundreds of billions of dollars worth of investment opportunities are emerging, both in solar power production and the wider electricity supply chain. Consequently, alongside Chinese and Japanese investors, EDF – Europe’s largest energy producer – is looking to acquire renewable assets in the Middle East, in order to diversify its primarily nuclear-based portfolio and capitalize on growing market demand. This demand is poignantly highlighted by the fact that the MENA region tendered over 2 GW of new solar capacity in 2016.

              In the GCC, power construction contractor awards increased 14% to $25.5 billion in 2017 over 2016. The highest increase was in Saudi Arabia, which saw a 50% increase to $12.35 billion in contractor awards versus 2016. This comes as Saudi Arabia launched its first competitive global tender for utility-scale solar power projects in January. Government renewable energy initiatives and smart city development has also boosted the regional cable market, which is expecting consolidated annual growth rates of 8.4% through 2023, leading to the creation of a $12 billion market. Again the growth rate is higher (9%) for the Saudi cable market through 2023. Similarly, the thermal energy storage sector is expecting a cumulative annual growth rate of 11% between 2017-2022, reaching $6.2 billion. This is being driven by renewable investment in the MENA region, which is quickly becoming the largest market for thermal energy storage.

              GCC leads solar investment
              These trends are MENA-wide, but are particularly noticeable in the GCC, and Saudi Arabia in particular. The Kingdom has announced its Saudi Arabia Vision 2030 and King Salman Renewable Energy Initiative, as well as created the Energy, Industry & Mineral Resources ‘super-ministry’ in May 2016 to streamline decision making. Unlike previous fitful efforts, these latest efforts are different because “they represent the highest level of commitment to renewable energy ever seen from the Kingdom,” argues Ahmed Nada, Middle East VP at First Solar. Indeed, the involvement of King Salman and Crown Prince Nayef indicates a proactive Saudi leadership that bodes well for ongoing energy diversification efforts.

              This is supported by plans to break-up the state-owned utility, Saudi Electricity Co. to increase efficiency. This move has generated significant interest from domestic and international investors. Shifting to solar power, will also save the Kingdom money in energy generation, as currently one third of the country’s three million bpd oil consumption goes towards energy generation. Similarly, a focus on concentrated solar power would allow the Kingdom to use waste heat from solar plants to power vital desalination plants. This trend has also benefitted greater economic diversification, as local energy infrastructure expertise is being harnessed by Saudi Arabia’s ACWA Power to gain a regional reputation for underbidding European and Asian competitors for solar projects. ACWA is already active in several projects in the UAE, Jordan and Morocco.

              While the Saudi juggernaut is slowing turning itself around, more nimble GCC states are undertaking even more daring efforts. The UAE is positioning itself as a renewable energy technology and investment hub, and is home to the International Renewable Energy Agency. The UAE is also reviewing its energy strategy and alongside Saudi Arabia is moving to reduce gas subsidization for energy generation. “We have so many open-cycle power plants, [that] it doesn’t make sense to continue with them – they’ve very low efficiency. The reason that they are there is because gas is subsidized,” explains UAE Energy Minister Suhail al-Mazrouei.

              Dubai has announced plans for 75% renewable energy by 2050, and to this end is building the Mohammed bin Rashid Solar Park, which is set to bring 1,000 MW online by 2020. The UAE is also planning $150 billion in renewable energy investment by 2050, with expected savings of $192 billion compared to LNG for the same period. This is in addition to the up to $10 billion worth of savings expected in the GCC from smart grid technology by 2020.

              Oman is also investing some $2 billion in solar energy production along with Swiss and Middle Eastern partners to generate approximately 400 MW. Oman is also building the world’s largest solar steam producing plant, Miraah, next to the Amal West oilfield. The project set to begin production in 2017, will produce 1,021 MW of energy to ease oil recovery efforts, saving the equivalent of 5.6 trillion Btu of natural gas per year that would otherwise be injected into the field to recover crude oil.

              Entire MENA region sees impressive green energy jumps
              Outside the GCC, other countries are also ramping up solar power investment. Chief among these is Morocco, which imports 97% of its energy. To counter this, the Moroccan government is aiming for 50% renewables by 2025 and has begun an ambitious plan to turn Morocco into a net energy exporter, by capitalizing on its proximity to Europe and ample solar power potential. The $9 billion Noor concentrated solar project has become the poster child for this effort, and is set to produce 160 MW upon completion. These efforts would in turn tie into the trans-continental, $423 billion Desertec plan for a combined grid for Europe and the MENA region.

              Similarly, Jordan imports 95% of its energy at a cost of 16% of GDP. Energy disruptions in the past have threatened Jordan’s stability, and while a common energy market will aid supply stability, Jordan is also focusing on increasing domestic energy production. To this end, Jordan has simplified the bidding process on renewable energy projects in order to entice investors. Moreover, the Mafraq I and II solar projects soon to begin construction, and expected to begin production in June 2018, will add 133 MW to national generating capacity. This one project alone will fulfill 2% of Jordan’s energy needs. Furthermore, Abu Dhabi’s Masdar announced plans for a 200MW solar plant in Jordan on January 20th. This announcement in turn comes less than a month after the inauguration of the 117 MW Tafila wind farm.

              On April 7th, Algeria announced plans to invite bids for the construction of three solar plants with a total generating capacity of 4,000 MW, drawing interest from international investors and the African Bank of Development. Algeria has already partnered with Italy’s ENI to develop renewable energy projects. Like Morocco, Algeria has plans to act as a green energy exporter to Europe and Africa going forward. Doing so would also, like Saudi Arabia, free up more natural gas for export instead of being consumed locally for energy production.

              Moving to Egypt we see a concerted effort by Cairo to stabilize its energy production, with the country aiming for 20% renewable energy by 2022. A key component of this endeavour is the $3.5 billion Aswan solar project, a network of 41 solar plants orchestrated by Egypt’s New & Renewable Energy Authority and partners. Set for completion in 2018, the network is expected to generate the equivalent of 90% of the existing Aswan dam, or 1.8 GW of solar energy.

              Blessed by ample solar resources, the MENA region is well situated to continue to play a leading role in 21st century energy markets, with the added benefits of greener production, increased domestic diversification, technological innovation and greater access to markets via common electrical grid initiatives in Europe and the Arab world.
              Financial Sense
              11 April

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