RIYADH: The European Union is eager to deepen its collaboration with Saudi Arabia in the energy sector as the global shift towards green energy intensifies, according to a high-ranking EU official.

In an interview with Arab News on the sidelines of the World Investment Conference, Christophe Farnaud, the EU ambassador to Saudi Arabia, highlighted that the EU holds substantial expertise in green energy, which could expedite Saudi Arabia’s transition to clean energy and support the broader Gulf Cooperation Council region.

Saudi Arabia, with its groundbreaking projects like the world’s largest green hydrogen plant in NEOM, is spearheading the energy transition in the region, targeting net-zero emissions by 2060.

“One of the key sectors where we are investing and fostering partnerships is the energy sector. This is not only in response to regional needs but also in alignment with the global commitment to the green transition,” Farnaud said. He added, “The EU has robust expertise in green energy, and the energy sector has been pivotal in the Kingdom’s development. Our focus now is to strengthen our collaboration on energy transition.”

Farnaud noted that European firms have substantial opportunities to partner in Saudi Arabia’s burgeoning renewable energy sector, particularly with the Kingdom’s significant investments in solar power and green hydrogen projects. He also mentioned potential collaborations with Saudi energy giants like ACWA Power to accelerate the green energy transition.

Beyond energy, Farnaud identified several other areas for enhanced cooperation between Saudi Arabia and the EU, including transport, machinery for emerging industries, entertainment, and tourism.

The EU ambassador also observed that European companies are increasingly recognizing the transformation in Saudi Arabia and are keen to explore new opportunities in the Kingdom.

Farnaud mentioned the first-ever EU-Saudi investment forum held last year, which attracted around 1,400 companies, demonstrating strong interest and commitment from both sides.

He added that the EU is assisting small and medium-sized enterprises in Europe to understand the potential of the Saudi market, highlighting the benefits of the Kingdom’s updated investment law.

Farnaud also discussed broader EU-GCC relations, noting the significance of the recent EU-GCC Summit in October, which emphasized economic partnership, with energy cooperation identified as a key area for strengthening ties.

During a panel discussion at the World Investment Conference, Farnaud highlighted that European companies are actively involved in most of Saudi Arabia’s major “giga-projects,” including NEOM, Qiddiya, and AlUla.

Regarding foreign investments, Farnaud emphasized that investment is a two-way process, requiring trust and mutual understanding. He noted that about 50 percent of GCC countries’ foreign investments go to Europe.

During the same panel, Prince Sultan bin Khalid Al-Saud, CEO of the Saudi Industrial Development Fund, highlighted Saudi Arabia’s socio-economic progress since the launch of Vision 2030, describing the Kingdom as unique due to its “positive energy and optimism.”

The SIDF CEO stressed that Vision 2030 is designed to benefit both current and future generations of Saudis, with a particular focus on investing in people.

Affirming the growth of the startup ecosystem in Saudi Arabia, the SIDF chief said that venture capital in Saudi Arabia has grown at a compound annual growth rate of 86 percent in the last five years.

He also added that Saudi Arabia’s women participation in the workforce is higher than that of Western Europe.

According to the latest report by the General Authority for Statistics, unemployment among Saudi nationals fell to 7.1 percent by the end of the second quarter, a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.

The report added that the unemployment rate among Saudi females also witnessed a sharp quarterly decline of 1.4 percentage points at the end of the second quarter reaching 12.8 percent.

Source link:   https://www.arabnews.com