Saudi Arabia unveils design of region’s first luxury train

RIYADH: The Middle East North Africa region is “among the world’s best locations for renewable energy,” a UN climate official told Arab News recently, ahead of a Bahrain climate conference that opened today.

Mahmoud Mohieldin, the UN special envoy for financing the 2030 sustainable development agenda, shared his insights on the MENA region, financing climate and regional energy resilience.

The third annual Sustainability Forum Middle East takes place on Jan. 28 and 29.

Held under the patronage of Mohamed Bin Daina, Bahrain’s minister of oil and environment and special envoy for climate affairs, the SFME is supported by the Supreme Council for Environment.

The two-day event is expected to attract over 400 senior business leaders and sustainability experts from the region and beyond. The forum features more than 50 speakers from the MENA region, Europe, the UK, US and Brazil.

“The region is among the world’s best locations for renewable energy, and MENA countries are becoming increasingly prominent players in that sphere.”

“Between 2013 and 2023, the Middle East region quadrupled its share of solar energy generation, and it is currently home to record low levelized costs of electricity for solar PV (photovoltaic power),” he said.

While acknowledging the region’s unique strengths, Mohieldin also highlighted challenges posed by geopolitical tensions and strained economic conditions.

He stressed the importance of exploring mechanisms including carbon markets and debt swaps.

“Egypt’s launch of its first regulated voluntary carbon market is a significant step toward achieving economic and environmental sustainability,” he noted.

Commenting on the forum, Mohieldin said: “Events like the Sustainability Forum Middle East are essential to building on the momentum generated by successive COPs (Conference of the Parties) in the region and driving further action.”

On the topic of public-private collaboration, Mohieldin said: “The private sector enjoys significant financial resources that can be directed toward sustainability. Almost half of climate finance provided worldwide between 2011 and 2020 came from the private sector.”

Mohieldin also highlighted the transformative potential of technology and innovation in addressing climate challenges.

“Innovation is what made renewables today ubiquitously cheaper than any other energy source. Solar panel costs, for example, have fallen by around 20 percent for every doubling of global cumulative capacity,” he said.

Mohieldin pointed to the rapid advancements in artificial intelligence as a double-edged sword, offering tools for predictive modeling and climate risk assessment while also raising concerns about the “AI divide,” which could disadvantage developing countries.

When asked about his expectations for this year’s forum, Mohieldin outlined several key areas of focus, including hydrogen, water security, and Carbon Border Adjustment Mechanisms.

“The imminent implementation of CBAM will have notable consequences on critical industries in the region. Discussions at the forum should focus on synthesizing policy solutions to mitigate risks while using CBAM as an opportunity to nurture domestic or regional carbon markets,” he said.

Mohieldin also called for a greater emphasis on turning the region into a contributor to advanced technologies, rather than just a user, to strengthen its role in global sustainability.

RIYADH: Foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah, following a landmark decision by the Saudi Capital Market Authority.

Effective immediately, the move aims to boost the capital market’s competitiveness and align with the Kingdom’s Vision 2030 economic diversification objectives, the CMA announced in a press release. 

While non-Saudis are allowed to purchase properties in the Kingdom, there are specific restrictions, and in the holy cities ownership is generally limited to Saudi nationals — although foreigners are allowed to lease properties there. 

Under the new guidelines, foreign investments are limited to shares or convertible debt instruments of listed companies. Total non-Saudi ownership, including individuals and legal entities, is capped at 49 percent of a company’s shares.

However, strategic foreign investors are prohibited from holding stakes in these companies. 

The move comes amid reforms across the region, with most neighboring countries allowing foreigners to own properties, primarily in free zones or designated areas under certain restrictions. 

“Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” said the CMA. 

The changes are also designed to stimulate foreign direct investment in the Kingdom’s capital market, as well as bolster its regional and international competitiveness. 

“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” added the CMA. 

Strengthening the real estate sector and attracting more FDI into the Kingdom is one of the key goals outlined under the Vision 2030 program, as Saudi Arabia aims to reduce its dependence on crude revenues and diversify its economy. 

The Kingdom aims to attract $100 billion in FDI by the end of this decade, and the government body has been implementing various initiatives and reforms to enhance the attractiveness of the capital market.

Some of these efforts include allowing foreign residents to directly invest in the stock market, enabling non-Saudi investors to access the market through swap agreements, and permitting qualified foreign capital institutions to invest in listed securities. 

The CMA has also allowed foreign strategic investors to acquire strategic stakes in listed companies and directly invest in debt instruments. 

In 2021, the CMA also allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah, which played a crucial role in increasing the attractiveness of the capital market to both regional and international investors. 

The share prices of real estate companies listed on Saudi Arabia’s stock exchange surged following the CMA’s announcement. 

Knowledge Economic City saw its share price rise by 9.89 percent to close at SR16.66 ($4.44). 

Jabal Omar Development Co.’s share price also increased by 10 percent to SR25.85, while Makkah Construction and Development Co.’s stock price climbed 9.84 percent to close at SR106.