Saudi Arabia Economic Research Highlights

Saudi Arabia ESG Research & Views

Urban areas experiment with cooling technologies to combat climate change

With temperatures in cities set to rise in the coming decades, many public and private players in emerging markets are looking to tackle the challenge of extreme heat through technology, sustainable building techniques and the expansion of urban green spaces. Cities cover just 3% of the Earth’s surface but currently house over half of the world’s population – a figure set to reach 70% by 2050. Urban population growth is predicted to be highest in emerging markets, with 90% of the shift to cities occurring in Asia and...

Emerging markets are targeting a share of the global electric vehicle market

With electric vehicles (EVs) set to proliferate and become more accessible to drivers around the world, several emerging markets are looking to expand their EV manufacturing. Once a luxury segment of the automotive industry, EVs have become popular among consumers and companies alike in recent years, with solid growth trends attracting public and private investment. EV uptake is essential to the global energy transition, as transport remains the sector with the highest reliance on fossil fuels, producing an estimated 37%...

Which markets are pioneering lower-carbon desalination technologies?

Long seen as a high-cost, energy-intensive process, desalination mega-projects are seeking to tap renewable resources to limit the cost and environmental concerns of this crucial technology. In June 2022 ENOWA, the energy, water and hydrogen subsidiary of Saudi Arabia’s NEOM mega-project, signed a memorandum of understanding with French energy company Veolia and Japanese trading company Itochu to develop a reverse osmosis (RO) water desalination facility powered by 100% renewable energy...

What impact will the rise in oil prices have on the energy transition?

Amid an increase in global demand and concerns over key supplies, global oil prices are approaching $100 per barrel for the first time since 2014. But, with prices rising, what does this mean for the renewable energy transition, especially in Gulf countries? After opening the year at around $78 per barrel, Brent crude prices rose sharply over the first six weeks of 2022 to surpass $94 as of February 14, the highest price in more than seven years. Driven primarily by a lack of supply and a recent post-lockdown spike in global demand...

How the UAE and Saudi Arabia are expanding the representation of women in the workplace

More female employees are joining workplaces and boardrooms in the UAE and Saudi Arabia, with gender equality a key target of a regional drive to improve environmental, social and governance (ESG) standards. While measurable progress has been achieved in recent years, there is room for further improvement in order to consolidate these changes into a lasting and broad-based transformation...

What does the future hold for Islamic finance?

After remaining resilient in 2020, the Islamic finance segment is performing strongly this year, as an improved economic environment, a rise in the number of large projects and an increased focus on environmental, social and governance (ESG) factors combine to drive demand. Despite the twin challenges of Covid-19 and the fall in global oil prices, the segment’s assets grew by 10.6% last year, according to global ratings agency S&P. Although this was down on the 17.3% growth rate recorded in 2019, it was nevertheless...

Carbon emissions: How will the Gulf get to net-zero?

As global leaders in politics and business continue to meet in Glasgow to discuss environmental issues as part of UN Climate Change Conference (COP26), some of the world’s most fossil fuel-dependent countries have launched plans to reach net-zero carbon emissions. On October 7 the UAE became the first country in the Gulf to commit to achieving net-zero. At Expo 2020 in Dubai, the government announced that it would aim to reach the target by 2050, in line with major industrialised markets like the EU and the UK...

How emerging markets are navigating the rising cost of solar power

With high energy prices and supply chain disruptions creating shortages of key renewable energy components and materials, emerging markets are reassessing how to build out utility-scale solar power to accelerate their energy transitions. After more than a decade of decline, the cost of solar photovoltaic (PV) panels has risen around the world, due primarily to the increasing cost of solar-grade polysilicon in China. A key component in PV panels, polysilicon spot market prices rose from less than $7 per kg in July 2020 to $39 in...

Is hydrogen the key to the Gulf’s energy transition?

With hydrocarbons-rich countries in the Gulf increasingly looking to reduce their carbon emissions, some in the region are turning towards multi-coloured hydrogen as a more environmentally sustainable solution. Along with renewable sources like solar and wind, hydrogen is seen as a potential low-carbon or zero-carbon fuel that is key to the transition away from fossil fuels. However, it is important to note that there are different types of hydrogen with different impacts on the environment...