BlackRock agrees to invest up to $400 million in Positive Zero, a carbon removal company based in Dubai, through its diversified infrastructure fund, according to a statement from Positive Zero on Monday as reported by Reuters.
Investment in Positive Zero
The investment will help Positive Zero, a carbon removal infrastructure company, achieve its goal of advancing energy transition projects in the Gulf countries, according to the statement.
Company Foundation
The company was established by Creek Capital, a climate investment firm, at the end of last year to coincide with the United Nations Climate Summit COP27 in Egypt, by merging solar energy company SirajPower, energy efficiency services company Taka Solutions, and on-demand battery company HYPR Energy.
Comment from BlackRock’s Head
Ed Winter, BlackRock’s Head of Asia Pacific and Middle East diversified infrastructure, stated that Positive Zero is well positioned to take advantage of the strong winds driven by ambitious economic growth and energy transition goals set by the UAE and other Gulf countries, according to the statement from Positive Zero.
COP28 Summit Goal
The investment aims to help achieve the goal of the COP28 summit hosted by the UAE, which concluded last week, which is to triple renewable energy capacity by 2030, according to what Hussein said in the statement.
BlackRock did not comment further beyond the statement issued by Positive Zero.
GACA Project
Passenger movement at Saudi airports is expected to be facilitated thanks to a new digital initiative launched by the Chairman of the General Authority of Civil Aviation, according to the Saudi Press Agency.
Project Objectives
This step is part of GACA’s efforts to develop the air transport system in the Kingdom to effectively improve the passenger experience, as confirmed by Alduwailj.
Digital Transformation
This initiative also aligns with the authority’s commitment to making digital transformation one of its priorities to provide the best services and highest quality according to international standards, adding that the start of this project relies on several other initiatives led by the authority, including issuing a list of passenger rights designed to enhance services to the highest levels of excellence and increase the benefits provided to travelers.
Economic Growth Expectations
Economic diversification efforts in Saudi Arabia are expected to bear fruit, as the Kingdom’s non-oil economy is forecasted to grow between 3% and 4% annually until 2030, according to an expert at Moody’s Analytics.
Non-Oil Sector
In a webinar, Katerina Nuru, an economist at Moody’s Analytics, stated that the Saudi economy has transformed in the past decade, with the non-oil sector increasingly contributing to the growth of the Kingdom’s GDP.
Enhancing the Non-Oil Private Sector
Nuru stated that the non-oil economy is expected to continue growing between 3% and 4% annually until 2030, accounting for about 56% of Saudi Arabia’s GDP. She added that Moody’s expects growth in the Saudi oil sector to continue between 0.5% and 1.5% after 2025 until 2030.
Enhancing the Private Sector
Enhancing the non-oil private sector is crucial for Saudi Arabia in diversifying its economy away from oil, according to its set goals in Vision 2030. Nuru stated that Saudi Arabia should focus on expanding the workforce to maintain the growth momentum of the non-oil private sector. She added that increasing women’s participation in the labor market and the growth of the expatriate population will play a crucial role. She mentioned that this growing workforce will boost the growth of the private sector and the non-oil economy.
Signing
The Deal
As part of Saudi Arabia’s efforts to ensure water security across the country, the sovereign wealth fund signed a deal worth 64.19 million Saudi riyals (17.02 million USD) for projects in the cities and villages of the Jazan region.
Operation and Maintenance of Projects
The sovereign wealth fund signed the deal with Al-Khorayef Technologies for Water and Power, which will operate and repair water projects in the region for a duration of 36 months, according to a statement issued by the stock exchange.
Company Objectives
This step aligns with the company’s mission to develop, deliver, and manage sustainable, innovative, and excellence-focused water, environment, and energy solutions that exceed stakeholder expectations. It also aligns with the company’s vision to lead the development of water, environment, and energy solutions for the welfare of the community.
Financial Impact
The financial impact resulting from the new contract began in the fourth quarter of 2023.
Previous Deal
In November, Al-Khorayef Technologies for Water and Power received a 15-year contract worth 2.2 billion Saudi riyals from the National Water Company in the kingdom to operate and maintain sewage treatment plants in Hayat and Al-Hait areas in Riyadh.
According to a statement issued by Tadawul at that time, Al-Khorayef Technologies for Water and Power expected the financial impact of the project to occur in the second quarter of 2024.
Under the deal, the company will design, rehabilitate, test, and maintain four sewage treatment plants in Hayat and Al-Hait, with a combined treatment capacity of 780,000 cubic meters per day.
The company added that the rehabilitation of these plants will be carried out in two phases over 36 months, while the operation and maintenance will begin at the start of the contract.
Saudi Market Performance
The Saudi Stock Exchange index rose on Sunday, increasing by 57.79 points, or 0.50 percent, to close at 11,600.72 points.
Stock Performance
The total trading volume in the main index was 4.52 billion Saudi riyals (1.20 billion USD), with 147 of the listed stocks rising, while 74 fell.
On the other hand, the parallel market “NOMU” decreased by 49.44 points, or 0.21 percent, to close at 23,371.21 points. The MSCI Tadawul index rose by 10.22 points, or 0.69 percent, to close at 1,497.40 points.
Best and Worst Performing Stocks
The best-performing stock of the day was Saudi Devices, where the company’s share price increased by 9.85 percent to 32.90 Saudi riyals.
Among other good performers were Marina Murabaha Financing Company and Electrical Industries Company, where their stock prices rose by 6.01 percent and 5.93 percent, respectively.
The worst-performing stock was Al-Baha Investment and Development Company, where the company’s share price fell by 7.14 percent to 0.13 Saudi riyals.
Other Announcements
Announced
Source: https://www.arabnews.com/node/2427721/business-economy
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