OIC Economies

OIC: Monthly news wrap - June 2023

Here is a roundup of key developments across the OIC during the month of June

Editor's note: To say that our planet is in peril is stating the obvious. Not only is it warming up at worrying speeds, but also losing its natural areas. Though a lot needs to be done on multiple levels to stem the damage, several countries are stepping up their game to counter the impending climate crisis.

Saudi Arabia collaborated with Kazakhstan to build on its existing energy partnership, while UAE's Masdar signed up for a 1GW wind power project in the Central Asian country. GCC state Oman inked $10bn in green hydrogen deals to underpin its net-zero ambitions, while Egypt upped its energy transition game with revised climate commitments.  

Trade Developments – Saudi Arabia / Bahrain
Bahrain, Saudi Arabia deal to position as single tourism destination 
Bahrain and Saudi Arabia have signed a memorandum of understanding (MoU) aimed at positioning the two countries as a unified regional and global tourism destination

The agreement, inked by Bahrain's tourism minister, Fatima bint Jaafar Al Sairafi, and Saudi Arabia's counterpart Ahmed Al Khateeb, establishes a framework for collaboration in various areas of mutual interest. (Zawya) (June 7, 2023)

Trade Developments – Saudi Arabia / Kazakhstan
Saudi Arabia collaborates with Kazakhstan to build on energy partnership 
Saudi Arabia and Kazakhstan have signed a deal to establish a framework for cooperation in the energy sector, expanding their existing energy partnerships.

The agreement covers collaboration in petroleum, gas, refining, petrochemicals, and electricity. Both countries will also work together on renewable energy, clean hydrogen, energy efficiency, storage, and development. (Arab News) (June 13, 2023)

Trade Developments – Senegal
ICIEC launches book highlighting development partnership with Senegal 
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group, launched a book titled "Senegal and ICIEC - Empowering Real Economy, Driving Development Impact."

The book, to be launched in July, offers insight into the successful collaboration between ICIEC and Senegal. (ICIEC) (July 3, 2023)

ESG Developments – Saudi Arabia
Saudi Electricity Co. invests $373m in three projects to boost power grid 
Saudi Electricity Co. is investing SR1.4 billion ($373 million) in improving electricity networks in three Saudi governates - Rafha, Al-Wajh, and Najran - to reduce liquid fuel consumption and carbon emissions.

The project aims to enhance reliability and efficiency while benefiting subscribers. (Arab News) (June 8, 2023) 

ESG Developments – UAE / Kazakhstan
UAE's Masdar signs roadmap for up to 1GW wind power project in Kazakhstan 
Masdar, Abu Dhabi's renewable energy company, has signed a roadmap to develop a wind power plant with a capacity of up to 1 GW in Kazakhstan.

The project aims to support the Central Asian country's goal of achieving 50% renewable energy in its energy mix by 2050. The agreement was signed by Masdar, the Ministry of Energy of Kazakhstan, the Kazakhstan Investment Development Fund, and Samruk-Kazyna. (Zawya) (June 12, 2023)

ESG Developments – Saudi Arabia
AlUla inks deal with Schneider Electric to adopt clean energy solutions 
Saudi Arabia's heritage city, AlUla, is working towards becoming a sustainable tourism destination by partnering with global power management specialist Schneider Electric.

The Royal Commission of AlUla has signed a memorandum of understanding with Schneider Electric to implement sustainable energy management solutions, including smart microgrids and intelligent buildings(Arab News) (June 14, 2023)

ESG Developments – Oman
Oman signs $10bn in green hydrogen deals to boost net-zero ambitions 
Oman's Hydrom has signed agreements worth $10 billion with a consortium of South Korea's Posco and French firm Engie, as well as the Hyport Duqm initiative, to develop two new green hydrogen production projects.

The projects will be located in the Al-Wusta governorate and are part of Oman's plan to produce over 1 million tons per annum of green hydrogen by 2030, increasing to 8 million by 2050. (Arab News) (June 22, 2023)

ESG Developments – Egypt
Egypt accelerates energy transition with revised climate commitments 
Egypt has submitted updated climate commitments under the Paris Agreement, aiming to generate 42% of its energy from renewable sources by 2030 instead of 2035.

The updated Nationally Determined Contribution (NDC) document highlights the country's need for grants and soft financing worth €500 million to achieve the revised targets. (Arab News) (June 27, 2023)

ESG Developments – Saudi Arabia
TotalEnergies completes financing of its first solar power plant in Saudi Arabia 
French energy giant TotalEnergies has achieved financial closure for its first solar power plant in Saudi Arabia, signaling the growth of sustainable energy provision in the country.

The 119-megawatt solar plant will be developed by a consortium consisting of TotalEnergies, Toyota Tsusho of Japan, and Saudi Arabia's Altaaqa Renewable Energy. (Arab News) (June 29, 2023)

Investment – Saudi Arabia
RVCMC successfully sells over 2.2 million tonnes of carbon credits 
The Regional Voluntary Carbon Market Company (RVCMC) announced the successful auction of over 2.2 million tonnes of carbon credits, making it the largest-ever voluntary carbon credit auction

Sixteen Saudi and international companies participated in the auction, with Aramco, Saudi Electricity Company (SEC), and ENOWA purchasing the largest number of carbon credits. (ITFC) (June 19, 2023)

Investment – Benin
IsDB Group, France's AFD partner to co-finance $1bn for green investments
IsDB, a multilateral development bank, and AFD, France's bilateral aid provider, have signed an MoU to strengthen their collaboration in project development and co-financing in developing countries, with a focus on Africa.

The partnership aims to co-finance projects aligned with the SDGs and the Paris climate agreement, with a target of $1 billion ($500 million each) over a specific period. (IsDB) (June 20, 2023)


Intra-OIC trade