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COP16: World Bank launches drought risk and resilience platform to address global crisis

COP16: World Bank launches drought risk and resilience platform to address global crisis
World Bank’s Global Director of Water Saroj Kumar Jha speaking at COP16. AN
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Updated 10 December 2024

COP16: World Bank launches drought risk and resilience platform to address global crisis

COP16: World Bank launches drought risk and resilience platform to address global crisis
  • Drought Risk and Resilience Assessment aims to strengthen decision-making frameworks and governance
  • Platform is designed to provide governments with tools to better understand droughts

RIYADH: A new platform designed to help governments monitor and manage drought risks has been launched by the World Bank at COP16 in Riyadh, as concerns over the global impact of water scarcity grows. 

The Drought Risk and Resilience Assessment aims to strengthen decision-making frameworks and governance to help tackle this growing issue.

The platform is designed to provide governments with tools to better understand droughts, create mechanisms for ongoing action, and anticipate and manage future risks. 

It comes after șÚÁÏÉçÇű used COP16 to announce the Riyadh Global Drought Resilience Partnership, which aims to provide early warning systems, training, and capacity building for 80 countries most vulnerable to a lack of water.

Speaking at the meeting of the Convention to Combat Desertification, the World Bank’s Global Director of Water Saroj Kumar Jha said his institution’s platform will be “built on international best practices,” harnessing expertise from governments, scientists, and practitioners. 

“Droughts do not occur suddenly but develop gradually over time,” he said. “What is important is that we need a system by which different parts of the government are able to collect the data.” 

Jha added that most developing countries lack national drought monitors to systematically collect data on factors such as soil, crops, water, rainfall, temperature, humidity, and weather. 

He emphasized that establishing these monitors would become a key focus area moving forward. 

Osama Faqeeha, șÚÁÏÉçÇű’s deputy minister of environment, highlighted the global urgency of addressing droughts, noting that projections suggest more than half of the world’s population could face water scarcity in the coming decades. 

He pointed to the increasing spread of droughts to new regions, particularly Latin America, where 35 percent is now exposed to the phenomenon.

“What the outlook is telling us is that maybe this number is expected to double or even more,” Faqeeha said. He also warned about the economic and social consequences of drought, including its impact on food prices, migration, and economic stability. 

The deputy minister also emphasized that 80 percent of the impact of water scarcity falls on agricultural communities, particularly small-scale farmers. He called for more global action to combat drought, underscoring that șÚÁÏÉçÇű has long relied on innovative approaches to water management. 

“We have to realize that 90 percent of freshwater is in soil, not in the rivers, not in the lakes — it’s in the soil, and when drought hits, the soil dries and life is taken away from it,” Faqeeha said, adding that every dollar put in resilience and preparedness saves $5 to $10 from the response. 

Global call to action 

Speakers at COP16 emphasized the interconnected nature of the crisis and the urgent need for collaborative solutions. 

Valerie Hickey, global environment director at the World Bank, highlighted the economic toll of environmental degradation, saying: “Globally, since 1995, the world has lost 20 percent of its natural capital per capita,” she said, adding that land degradation alone costs the global economy 10 percent of its gross domestic product annually. 

The Kingdom’s efforts to tackle the issue also align with broader environmental goals, including its Saudi and Middle East Green Initiatives, which aim to combat desertification and expand vegetation cover. 

Ayman Ghulam, CEO of the National Center of Meteorology, elaborated on șÚÁÏÉçÇű’s proactive response to the challenges posed by sand and dust storms, which are worsening due to climate change. 

These include a dedicated regional center focusing on monitoring and mitigating the effects of storms, while the Climate Change Center addresses broader environmental impacts. 

The cloud seeding program, another critical initiative, works to enhance rainfall and combat aridity, supporting water resource management and reducing the vulnerability of affected areas. 

“These efforts demonstrate the Kingdom’s commitment to sustainable development, environmental conservation and addressing the challenges of climate change and sand and dust storms, and drought and land degradation,” Ghulam said. 

Faqeeha urged global stakeholders to act decisively. “The time to act is now,” he said, emphasizing that resilience requires partnerships across governments, NGOs, and the private sector. 

By fostering collaboration and leveraging innovative solutions, the initiatives announced at COP16 aim to address one of the most pressing global challenges. 


Closing Bell: Saudi main index ends lower at 10,833

Closing Bell: Saudi main index ends lower at 10,833
Updated 1 min 24 sec ago

Closing Bell: Saudi main index ends lower at 10,833

Closing Bell: Saudi main index ends lower at 10,833
  • Parallel market Nomu fell 0.63% to close at 26,755.84
  • MSCI Tadawul Index lost 0.79% to end at 1,398.65

RIYADH: șÚÁÏÉçÇű’s Tadawul All Share Index slipped on Sunday, falling 87.17 points, or 0.80 percent, to close at 10,833.10.

The total trading turnover of the benchmark index stood at SR3.39 billion ($904 million), with 62 stocks advancing and 187 declining.

The Kingdom’s parallel market Nomu fell 169.14 points, or 0.63 percent, to close at 26,755.84, as 30 stocks advanced while 50 retreated.

The MSCI Tadawul Index also dropped, losing 11.09 points, or 0.79 percent, to end at 1,398.65.

The best-performing stock of the day was Sport Clubs Co., whose share price rose 9.96 percent to SR12.37.

Other top performers included Thimar Development Holding Co., which increased 6.67 percent to SR38.68, and Nama Chemicals Co., which gained 5.72 percent to SR26.24.

Saudi Aramco Base Oil Co., or Luberef, recorded the most significant decline, dropping 9.96 percent to SR94.00.

Jabal Omar Development Co. saw its share price fall 5.39 percent to SR18.96, while Dar Alarkan Real Estate Development Co. declined 4.35 percent to SR18.27.

On the announcements front, Saudi Basic Industries Corp. reported its interim financial results for the period ending June 30. According to a Tadawul statement, the company recorded a net loss of SR5.28 billion during the first six months of the year, compared to a net profit of SR2.43 billion in the same period a year earlier. 

The decline was primarily due to impairment charges, provisions, a strategic restructuring initiative, lower results from associates and non-integral joint ventures, and a zakat expense of SR694 million in 2025 versus a positive non-cash benefit of SR214 million in 2024.

SABIC also announced the board of directors’ recommendation to distribute SR4.5 billion in cash dividends to shareholders for the first half of 2025. A bourse filing revealed that the total number of shares eligible for dividends amounted to 3 billion, with a dividend per share of SR1.5, representing 15 percent of the share’s par value.

SABIC’s share closed the session at SR54.45, down 1.19 percent.

Luberef released its interim financial results for the first half of the year. According to a Tadawul statement, the company posted a net profit of SR446 million, down 13.2 percent year-on-year, mainly due to lower crack margins for by-products and a decline in base oil sales volumes, despite an improvement in base oil crack margins.

The company also announced the board’s recommendation to distribute SR168 million in cash dividends for the first half of 2025.
A bourse filing said the number of shares eligible for dividends was 168 million, with a dividend per share of SR1, equivalent to 10 percent of the share’s par value.


șÚÁÏÉçÇű opens August ‘Sah’ savings sukuk window with 4.97% return

șÚÁÏÉçÇű opens August ‘Sah’ savings sukuk window with 4.97% return
Updated 03 August 2025

șÚÁÏÉçÇű opens August ‘Sah’ savings sukuk window with 4.97% return

șÚÁÏÉçÇű opens August ‘Sah’ savings sukuk window with 4.97% return
  • Subscription for issuance will remain available until Aug. 5
  • Minimum subscription amount set at SR1,000, with maximum cap of SR200,000

RIYADH: șÚÁÏÉçÇű has announced the opening of the August subscription window for its government-backed savings sukuk, offering an annual return of 4.97 percent, marking an increase from July’s 4.88 percent. 

The “Sah” sukuk is part of the 2025 issuance calendar overseen by the National Debt Management Center under the Ministry of Finance. 

The initiative is aligned with the Financial Sector Development Program, a key pillar of Vision 2030, which aims to elevate the national savings rate from 6 percent to 10 percent by the end of the decade. 

Subscription for the issuance opened at 10 a.m. Saudi time on Aug. 3 and will remain available until 3 p.m. on Aug. 5. The sukuk remains Shariah-compliant, denominated in Saudi riyals, and structured with a one-year maturity, offering fixed returns upon redemption. 

The minimum subscription amount is set at SR1,000 ($266.58), with a maximum cap of SR200,000 per investor. 

Individual investors aged 18 and above can participate through approved digital channels, including SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, and Al-Rajhi Capital. 

As the Kingdom’s first retail-oriented, government-backed savings instrument, “Sah” is designed to enhance personal financial planning and encourage disciplined savings habits among individuals. 

The product offers several features to make savings accessible, including zero subscription fees, a simplified digital onboarding process, and flexibility in redemption, allowing subscribers to withdraw their funds during specified windows without penalties on the principal amount. 

The sukuk is issued in the form of lease-based structures, ensuring compliance with Shariah principles, and does not qualify as a tradable security on the Saudi financial market. 

The NDMC said the return rate for each issuance is determined based on prevailing market conditions, which may vary month to month. 

“Sah” sukuk are considered low-risk, government-guaranteed instruments, contributing to the Kingdom’s broader strategy of expanding the range of domestic savings products available to individuals. 

The NDMC said the sukuk supports the development of a more robust savings culture while fostering collaboration between public institutions and private financial entities. 


OPEC+ to raise oil output by 547,000 bpd in September

OPEC+ to raise oil output by 547,000 bpd in September
Updated 03 August 2025

OPEC+ to raise oil output by 547,000 bpd in September

OPEC+ to raise oil output by 547,000 bpd in September
  • Group said gradual phase-out of voluntary production cuts could be paused or reversed
  • It ensures alliance’s ability to respond swiftly and maintain balance in global oil markets

RIYADH: The OPEC+ alliance has agreed to increase oil production by 547,000 barrels per day in September, citing improved global economic prospects and stable market fundamentals.

In a statement issued on Sunday, the group emphasized its continued flexibility, noting that the gradual phase-out of voluntary production cuts could be paused or reversed depending on evolving market conditions.

This approach, it said, ensures the alliance’s ability to respond swiftly and maintain balance in global oil markets.

The decision marks the final stage of a phased reversal of the 2.2 million bpd voluntary production cuts implemented by eight OPEC+ members in 2023, a move initially aimed at stabilizing prices amid economic uncertainty.

“The eight OPEC+ countries also noted that this measure will provide an opportunity for the participating countries to accelerate their compensation,” the statement read.

The producers also reaffirmed their commitment to full compliance with the group’s Declaration of Cooperation, and said that the Joint Ministerial Monitoring Committee would continue to supervise the voluntary adjustments, as agreed during its 53rd meeting on April 3, 2024.

The alliance had earlier approved smaller monthly increases—138,000 bpd in April, and 411,000 bpd each for May, June and July. In July, it announced a larger-than-expected increase of 548,000 bpd for August.

The latest hike will bring șÚÁÏÉçÇű’s output to 9.97 million barrels per day in September. Russia is set to produce 9.44 million bpd, Iraq 4.22 million, and the UAE 3.37 million. Production levels for Kuwait, Kazakhstan, Algeria, and Oman are projected at 2.54 million, 1.55 million, 959,000 and 801,000 bpd, respectively.

OPEC+ also said it would continue holding monthly meetings to review market conditions, compliance, and compensation, with the next gathering scheduled for Sept. 7.

In a speech at the St. Petersburg International Economic Forum in June, Saudi Energy Minister Prince Abdulaziz bin Salman described OPEC+ as the “central bank” of the global oil market, highlighting the alliance’s stabilizing role amid ongoing economic volatility.


GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024

GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024
Updated 03 August 2025

GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024

GCC’s constant GDP grows 3.3% to $456.3bn in Q4 2024
  • Non‑oil activities accounted for% of region’s GDP at constant prices
  • Oil activities contributed 29.4%

RIYADH: The gross domestic product of Gulf Cooperation Council countries rose 3.3 percent at constant prices to $456.3 billion by the end of 2024, according to a new report.

Non‑oil activities accounted for 70.6 percent of the region’s GDP at constant prices in the final quarter, while oil activities contributed 29.4 percent, Oman News Agency reported, citing the Gulf Statistical Center.

“The contribution of non‑oil activities to the GCC GDP at constant prices reached 70.6 percent by the end of the fourth quarter of 2024,” ONA said.

The GDP growth aligns with broader trends across the Gulf, where nominal GDP reached $587.8 billion, growing 1.5  percent year on year, with non-oil sectors contributing 77.9  percent of the total growth.

Qatar recorded the highest real GDP increase at 4.5  percent, followed by the UAE at 3.6  percent, and șÚÁÏÉçÇű at 2.8  percent, highlighting non-oil expansion as the main driver across the bloc.

Real GDP across the GCC rose 2.4 percent, with non‑oil GDP expanding by 3.7 percent and oil GDP contracting by 0.9 percent due to voluntary OPEC+ production cuts.

Non‑oil sectors such as manufacturing, wholesale and retail trade, construction, finance, real estate, and public administration collectively underpinned this growth, with manufacturing alone contributing 12.5 percent and retail trade nearly 9.9 percent of nominal GDP.

șÚÁÏÉçÇű’s economy grew 1.3 percent, with fourth‑quarter real growth of 4.4 percent compared to the same period in 2023. Non‑oil activities grew 4.6 percent, outpacing a 4.5 percent contraction in oil output as government spending increased by 2.6 percent, Reuters reported.

Strategic programs like the National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to non‑oil GDP in 2024, representing 39  percent of the nation’s non‑oil output, with overall non‑oil activities accounting for 55  percent of total GDP.

The GCC’s pivot away from hydrocarbon dependence is supported by major investments in tourism, logistics, manufacturing, and finance, combined with regulatory reforms and infrastructure expansion.

National reforms such as Saudi Vision 2030, the UAE’s Economic Vision, Qatar’s National Vision 2030, and Oman’s Vision 2040 are all central to this shift.


Azerbaijan to export 1.2bn cubic meters of gas to Syria annually via Turkiye 

Azerbaijan to export 1.2bn cubic meters of gas to Syria annually via Turkiye 
Updated 03 August 2025

Azerbaijan to export 1.2bn cubic meters of gas to Syria annually via Turkiye 

Azerbaijan to export 1.2bn cubic meters of gas to Syria annually via Turkiye 
  • Syrian energy minister said new gas supply will boost electricity generation by about 750 megawatts
  • Turkish counterpart said deal targets initial daily deliveries of 6 million cubic meters

RIYADH: Azerbaijan will export 1.2 billion cubic meters of natural gas annually to Syria through Turkiye, marking a significant shift in regional energy cooperation and highlighting Ankara’s growing involvement in Syrian reconstruction.

The gas will be sourced from the Shah Deniz field in the Caspian Sea, operated by a BP-led consortium, and transported through a pipeline linking Turkiye and Syria, according to SOCAR Vice President Elshad Nasirov. He made the remarks during a ceremony in Kilis, a Turkish city near the Syrian border.

The export deal follows agreements earlier this year between Azerbaijan President Ilham Aliyev and Syrian President Ahmad Al-Sharaa, Azerbaijan’s Economy Minister Mikayil Jabbarov said, as reported by Reuters.

The development comes as Turkiye moves to normalize ties with the Damascus government, pivoting from its previous support for opposition groups. Turkish companies in construction, logistics, and manufacturing are expected to play a leading role in rebuilding Syria, where damage estimates top $1 trillion, according to the UN.

“With this agreement, Azerbaijan proves it can supply gas not only westward, but also to the East and South,” Nasirov said.

Syrian Energy Minister Mohammad Al-Bashir said the new gas supply will boost electricity generation by about 750 megawatts, providing an additional four hours of daily electricity in several war-affected areas.

Turkish Energy Minister Alparslan Bayraktar said the deal targets initial daily deliveries of 6 million cubic meters, aligning with the 1.2 bcm annual goal. He added the first phase could expand to 2 bcm per year, enough to restart Syrian power plants with a total capacity of 1,200 MW.

However, Al-Bashir noted the initial phase will begin with 3.4 million cubic meters per day, with gradual increases. He emphasized the gas would directly support energy restoration in the country’s most devastated regions.

In a joint press conference in May, Bayraktar said the agreement could eventually power up to 1,300 MW of electricity generation.