Saudi and Indian renewables companies sign spate of agreements in New Delhi

Good morning, nice people. We’re experiencing a slight pause in the flood of regional climate news as the week rolls on, but there are a few regional updates and international news bits to share.

THE BIG CLIMATE STORY- Several KSA-based renewables companies including Desert Technologies and Tadawul-listed Al Jomaih Energy and Water company have signed MoUs with Indian companies on the sidelines of the India-Saudi Investment Forum to invest in the region’s renewables sector.

HAPPENING TODAY- Egypt will kick off the Environmental and Climate Investment Forum today in the New Administrative Capital. The one-day forum aims to present a number of potential investments for the private sector in several sectors, including sustainable energy, waste recycling, environment tourism, circular economy, sustainable agriculture, food production and others.

THE BIG CLIMATE STORY OUTSIDE THE REGION- International tribunal to decide if CO2 should be included in ocean pollution laws: The Hamburg-based International Tribunal for the Law of the Sea was asked yesterday to decide whether UN ocean pollution laws backed by 176 countries also apply to CO2 emissions. The case was brought to the tribunal by a group of nine small island nations — including Tuvalu and Vanuatu — who face the threat of becoming completely submerged by the end of the century. The tribunal governs the deep sea mining and shipping industries and requires signatories from its members to take measures to prevent and reduce pollution in marine environments. Tuvalu’s capital Funafuti could be flooded by 2050 if climate change is left unchecked, the newswire said. If the tribunal agrees with the small island nations that CO2 is considered a form of pollution, it would put further pressure on signatories to reduce greenhouse gasses. A decision is expected in early 2024.

REMEMBER- Earlier this year, a wider group of climate vulnerable islands led by Vanuatu asked the International Court of Justice to issue its assessment of what countries are obliged to do in order to make sure that global temperature rise is kept below the Paris Agreement target of 2 °C. Countries will submit input over the next year, and it could take the court around 18 months to issue an advisory opinion to clarify financial obligations countries have on climate change.

The story grabbed headlines in the international press: Reuters | Bloomberg | CNN | The Guardian

---

SIX DAYS TO GO until we see some of you at the Enterprise Finance Forum, which takes place 18-19 September (Monday and Tuesday) at the St. Regis Hotel on the Nile Corniche. This flagship forum is the latest in our must-attend series of invitation-only events, where CEOs, bankers, investors, founders, and corporate leaders will meet to discuss the trends shaping the future of banking, finance, NBFIs, and fintech — and of their clients.

What to expect: Join Sherif El Behery (CEO and managing director, MDI), Mohamed Mounir (deputy CEO, ValU), Tarek Shahin (chief investment officer, CI Asset Management), Himanshu Shrimali (co-founder and CEO, Menthum), Amro Abouesh (founder, Maseera), Kamel Saleh (CEO, Grant Thornton Egypt) and many others for talks on everything from where the talent in our industry can be found, whether NBFIs are a bubble and the state of finance’s professional services firms.

Tap or click here to view the FULL AGENDA with SPEAKERS.

There will be plenty of parking available at the venue for all those attending.

We are honored to count some of the region’s most important financial institutions as

our partners for this special event. The Enterprise Finance Forum could not take place without the support of our partners including Banque Misr, Al Baraka Bank, FAB Misr, HSBC, Mashreq, CI Capital, Global Corp, Visa, Hassan Allam Utilities, the IFC, and Post for Investment.

---

WATCH THIS SPACE #1- Egypt voices anger over GERD’s final filling: Egypt said Ethiopia’s completion of the fourth and final filling of its Grand Ethiopian Renaissance Dam (GERD) “places a burden on the path of renewed negotiations,” according to a statement. It said the “unilateral” move by Ethiopia continues to disregard the interests, rights, and water security of downstream countries Egypt and Sudan, describing it as a “violation of the Declaration of Principles” signed between the three countries in 2015.

A continued deadlock: The first round of talks in late August between Egypt, Ethiopia, and Sudan in two years ended without a breakthrough. The discussions hosted in Cairo “did not witness any tangible change in the Ethiopian position,” an Egyptian Irrigation Ministry spokesperson said at the time. The Cairo-hosted round of talks came a few weeks after Egyptian President Abdel Fattah El Sisi and Ethiopian PM Abiy Ahmed said they aim to finalize an agreement on the dam within the next four months. Officials from the three countries will reconvene in the Ethiopian capital for a new round of talks this month.

REFRESHER- The three countries have failed during years-long negotiations to reach a consensus on how to share the Nile’s water. Cairo fears the dam presents an existential threat to its water security as Ethiopia continues to unilaterally fill the reservoir without a binding agreement. The unilateral filling pushed Cairo to withdraw in 2021 from African Union-led negotiations.

---

WATCH THIS SPACE #2- Qatar plans to launch a green tech investments fund in the UK: Qatar is weeks away from establishing a USD 4 bn research hub for green energy investments in the UK funded by the non-profit Qatar Foundation, The Times reports. The fund — called Project Oryx — aims to encourage UK green startups to remain in the country and scale up their projects through a USD 1.5 bn seed round, with British luxury automaker Rolls-Royce supplying the technical knowledge. The sectors of interest for the fund include green aircraft fuel, carbon capture and storage, and long-term energy storage, the news outlet said. Project leaders are already in conversation with a number of early-stage companies, a fund manager told the Times. As part of the agreement, a research facility will also be set up in Doha.

WATCH THIS SPACE #3- Jinko-Sembcorp JV heads to the Muscat Stock Exchange: A JV established earlier this year by Singapore’s Sembcorp Utilities — a subsidiary of Sembcorp Industries — and China’s Jinko Power has secured approval for its share capital to be listed on the Third Market of the Muscat Stock Exchange, according to an statement (pdf) published by the exchange. The JV was issued a license with a share capital of RO 500k (USD 1.3 mn) comprising 500k shares by the Ministry of Commerce, Industry, and Investment Promotion, according to the statement. The bourse’s Third Market is a platform that enables small and emerging companies to publicly trade their shares with less stringent regulations compared to companies listed on the primary stock exchange, the Oman Daily Observer notes.

BACKGROUND- The Jinko-Sembcorp JV was selected to develop the 500 MW Manah 2 solar plant in Oman under a build-own-operate model last March. The JV — 80% owned by Sembcorp Utilities — also signed a 20-year power purchase agreement with Nama Power and Water Procurement company, which was called Oman’s Power and Water Procurement Company (OPWP) at the time. The contract was made official in May, at the same time Nama selected Korea Western Power and French EDF Renewables for its Manah 1 solar plant. The project marks Sembcorp’s first direct foray into MENA’s renewables sector.

NON-CLIMATE REGIONAL HEADLINES:

• UAE: UAE-headquartered hypermarket chain and mall operator Lulu Group International expects to launch its IO in 1H2024, with its shares to be listed in the Gulf, its chairman said on the sidelines at an event in New Delhi, without specifying the exchange. (Reuters)

Get Enterprise Climate

***

YOU’RE READING ENTERPRISE CLIMATE, the essential MENA publication for senior execs who care about the world’s most important industry. We’re out Monday through Thursday by 5am Cairo / 5am Riyadh / 6am UAE.

EXPLORE MORE OF ENTERPRISE ON THE WEB — tap or click here to read EnterpriseAM, EnterprisePM, and The Weekend Edition on our powerful new website packed with reader-friendly features.

Were you forwarded this email? Get your own subscription without charge here or reach out to us on climate@enterprisemea.com with comments, suggestions and story tips.
***

CIRCLE YOUR CALENDAR-

Egypt will host the Hydrogen Egypt Summit on Wednesday 13 September and Thursday 14 September in Cairo. The two-day event will bring together members of the local and global hydrogen industry to discuss optimizing hydrogen and green hydrogen development in MENA. The event will serve as a platform for the local industry to discuss potential investments with global investors, operators, and technology providers.

Morocco will host the World Power-to-X Summit from Tuesday 19 September to Thursday 21 September in Marrakech. The event brings together policymakers, industry leaders, and innovators in green hydrogen to showcase success stories in the carbon-free industry. It will also explore scaling-up projects throughout the Power-to-X value chain and hold discussions on harmonizing roadmaps of contiguous countries and adjacent regions.

Saudi Arabia will host the MENA Climate Week from Sunday, 8 October to Thursday, 12 October in Riyadh. The four-day summit will discuss climate solutions ahead of COP28. It aims to provide a platform for policymakers, businesses, and others to exchange climate solutions as well as discuss obstacles and avenues in different regions. It considers four major systems-based tracks: energy systems and industry, cities, urban and rural settlements, infrastructure and transport, land, ocean, food and water, societies, health, livelihoods, and economies. You can register here.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

Saudi Arabia and India partner on renewables and green steel: Several KSA-based renewables companies including Desert Technologies and Tadawul-listed Al Jomaih Energy and Water company have signed MoUs with Indian companies on the sidelines of the India-Saudi Investment Forum to invest in the region’s renewables sector, The National reports.

A sizable agreement for MENA: Dammam-based electric utility company Al Jomaih Energy and Water company signed an EPC agreement with Avaada Energy — the renewable energy arm of India’s Avaada Group — to jointly develop clean energy projects in the Middle East, including solar and wind energy farms that would supplemented with battery energy storage facilities. The expected launch date for the planned projects, targeted generation capacity of the renewables plants, and an estimated investment ticket for the MENA-based renewables farms were not disclosed. The Indian company — which earlier in April secured USD 1 bn in green financing from Brookfield Renewable Partners to expand its operations — has a 4 GW renewable energy portfolio across India, is eyeing an 11 GW clean energy production volume by 2026 with plans to up capacity further to 30 GW by 2030. Al Jomaih is developing a 120 MW solar plant in India’s Gujarat.

And another for green steel: Saudi solar PV and smart infrastructure developer Desert Technologies signed an agreement with Indian multinational conglomerate Essar Group to supply renewable energy solutions for the latter’s planned USD 4.5 bn flat steel complex in Ras Al Khair as well as future clean energy-powered projects it will undertake in the country, according to a statement. Essar submitted its project proposal to the Saudi Industry Development Fund for the green steel plant back in March, with a target to produce 4 mn tons a year of casting and hot-strip steel, as well as 1 mn tons of cold-roll coil capacity and tin plates a year.

ALSO- Desert Technologies inked an MoU with Indian counterpart Goldi Solar to facilitate knowledge transfer and jointly collaborate on advancing clean energy technologies, according to The National. Back in June, the Indian developer said it will earmark INR 50 bn (USD 603 mn) to expand its solar cell module manufacturing capacity to 6 GW from its current 2.5 GW volume.

IN OTHER NEWS- Saudi Arabia’s sovereign wealth funds plants to set up shop in Gujarat: Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) plans to establish an office in the country’s tax-neutral Gujarat International Finance Tec-City (GIFT), Reuters quotes KSA’s Investment Minister Khalid Al-Falih as saying yesterday following an invitation by Indian counterpart Piyush Goyal. The announcement came on the sidelines of a high-level bilateral tour, which saw KSA Crown Prince Mohammed bin Salman commit during talks with India’s Prime Minister Narendra Modi to set up a USD 100 bn task force to facilitate Saudi investments into the country.

KSA’s Red Sea Global is giving us a zero-carbon tourist destination: Red Sea Global (RSG) — a global multi-project developer fully owned by Saudi Arabia’s sovereign wealth fund the Public Investment Fund (PIF) — said it has entered into a 25-year concession agreement with French power giant EDF and the UAE’s state-owned renewables player Masdar on a multi-utility infrastructure facility to service its ultra-luxury resort destination Amaala on the country’s northwestern coast, according to a joint statement.

What we know: Amaala will be fully powered by solar energy like its sister destination The Red Sea, saving c. 500k tons of CO2 emissions per year. The new facility will be home to an optimized off-grid renewable energy system supplying solar power with a 700 MWh battery energy storage facility, a fully powered RO desalination plant with a capacity of 37 mn liters of water per day, and wastewater treatment plant, the statement notes. The resort’s renewable supply system will have the capacity to generate up to 410k MWh per annum, which is enough to power 10k homes for an entire year. The first phase is set to welcome its first guests in early 2025.

About the contract: The independent public-private partnership (PPP) contract will cover the design, construction, and operation of the systems providing utilities along with associated networks and infrastructure, the statement read. The agreement between the three parties will have the option to be extended and includes financing, engineering, development, construction, operation, maintenance, and transfer of the multi-utility infrastructure facility.

Building on a previous blueprint: “The project follows the template for success provided by The Red Sea, where we recently completed the build of five solar farms, procuring a destination-wide utility system that enables us to operate with no connection to the national grid,” said John Pagano, Group CEO of Red Sea Global.

It’s been an eventful summer for RSG: The PIF-owned developer installed 750k solar panels and five solar stations for the first phase of the kingdom’s luxury The Red Sea project last July. The resort destination will have a net-carbon USD 1.5 bn multi-utility system providing renewable energy, potable water, wastewater treatment, district cooling, and solid waste treatment for 16 hotels, an international airport, and related infrastructure for the project’s first phase. RSG also recently developed with Kuwait-based telecom company Zain the world’s first carbon-neutral 5G network at the Six Senses Southern Dunes resort at RSG’s The Red Sea project in the kingdom.

Can blended wing body aircrafts help decarbonize aviation? Aviation industry giants are developing next generation commercial airplanes with blended wing bodies (BWB) in a bid to increase payload capacity while pushing down fuel consumption and greenhouse gas emissions by 50% compared to conventional alternatives, CNN writes. These aircraft hybridize the flying wing design pioneered in the 1920s and the conventional “tube and wing” design of commercial airplanes over the past 65 years.

Blended wing body? The concept — currently being studied by US aircraft maker Boeing, French aerospace company Airbus, and California-based JetZero — would see the development of commercial planes with efficient high-lift wings and wide streamlined airfoil-shaped bodies that minimize drag and enable the entire aircraft to generate lift, according to research by Nasa. Aircrafts built on the basic concept of the BWB design — including the US flagship long-range stealth bomber B-2 Spirit — have several control surfaces on the trailing edge instead of the conventional tail assembly and have significantly wider wingspans than planes like the Boeing 787s. BWB models — designed using composite materials that are lighter and more durable than conventional metal construction — can potentially slash fuel consumption by over 20 percent while reducing operating costs and noise pollution, the space agency notes.

Higher expectations for emission reductions: JetZero — which trialed a six-foot blended wing demonstrator back in 2020 and has plans to take its first BWB commercial flight to the sky by 2030 — says its BWB technology could halve aviation carbon output when relying on conventional engines and will later be completely net-zero when powered by energy sources like hydrogen. “We feel very strongly about a path to zero emissions in big jets, and the blended wing airframe can deliver 50% lower fuel burn and emissions. That is a staggering leap forward in comparison to what the industry is used to,” co-founder and CEO of JetZero Tom O’Leary told CNN.

JetZero has big plans: Alongside passenger planes, JetZero plans to develop BWB cargo aircrafts and fuel tankers. Last month, the US Air Force said it will invest USD 235 mn in JetZero to support plans to develop a full-scale BWB fuel tanker by 2027. JetZero has not yet secured supply agreements for its BWB planes under development, according to O’Leary, but air carriers are showing interest. “We’re talking to all the major airlines globally already, because they’re excited to hear about the efficiency gains,” he told CNN.

A departure from current plane design: The BWB shape will see cargo and cabin area distributed across the wide fuselage — likely seeing passengers board from the front or the rear of the aircraft, Nasa notes. The closest comparable plane to the envisioned commercial BWB is the Boeing 767 — a widebody, twin-engine aircraft — whose cabin can house 210 passengers, according to O’Leary. “Your typical single-aisle plane has three by three seats, but this is a sort of a shorter, wider tube. You get the same amount of people, but you might have 15 or 20 rows across the cabin, depending upon how each particular airline will configure it,” O’Leary noted.

Nasa has already proven the concept’s viability: Between 2007 and 2012, Nasa completed 122 flight testing campaigns of two unmanned, remote-controlled X-48 BWBs, demonstrating the design’s applicability. Planned BWB models could operate from existing airport terminals across the globe with no infrastructure modifications needed to house the planes, Nasa notes.

But some challenges ahead: One main technical challenge hindering development is “the pressurization of a non-cylindrical fuselage,” according to O’Leary. Conventional tube and wing planes like the Boeing 787 are better adept at maneuvering the expansion and contraction cycles of each flight, he explains. “The blended wing body aircraft holds immense promise as a game changer in the aviation industry, offering the potential for improved fuel efficiency, enhanced payload capacity, and innovative control systems. However, addressing the aerodynamic complexities, ensuring structural integrity, navigating regulatory hurdles, and adapting airport infrastructure are formidable challenges that must be overcome for it to become a reality,” aviation analyst at consulting firm AviationValues Bailey Miles told CNN, adding that these hurdles render JetZero’s target 2030 to fly BWB planes by 2030 “inconceivable.”

KSA showcases dust storm mitigation efforts at Iran conference: Saudi Arabia is implementing a series of measures to mitigate the impacts of sand and dust storms in the country, head of Saudi Arabia’s National Center of Meteorology Ayman Ghulam said in a speech at the International Conference on Combating Sand and Dust Storms in Tehran, according to Urdu Point. These measures include planting more trees, rehabilitating degraded plant sites, developing cloud seeding technologies, and setting up regional climate change and storm warning centers. Ghulam highlighted a number of ongoing national projects, including one to plant 10 bn trees and restore over 40 mn hectares of degraded land, and another to plant 50 bn trees as part of the Saudi Green Initiative, which is equivalent to 5% of the global afforestation target. Other moves that will support the country's preparation for dust storms include its establishment of the Regional Climate Change Center, the Sand and Dust Storm Warning Regional Center (accredited by the World Meteorological Organization in July), and the Regional Cloud Seeding Program, Ghulam added in his speech.

Why is this important? From 25% to 50% of global dust emissions occur as a result of human activities, the UN Convention to Combat Desertification said, adding that in some areas, desert dust has doubled in the last century alone. The MENA region loses about USD 13 bn a year from sandstorms that “damage buildings, powerlines and other vital infrastructure, kill crops and interrupt transportation,” the World Economic Forum says. Dust storms also reduce the generation efficiency of solar panels, according to the Middle East Institute. The storms also have a major impact on health, causing breathing problems that can lead to disorders including asthma or pneumonia, as the region witnessed during the summer of 2022 when unprecedented dust storms hit the Middle East, the institute said.

The issue is gaining traction regionally: Iran convened a ministerial conference with 11 countries from the region in July 2022 and formed a regional environmental organization and fund. The country has also signed MoUs to increase cooperation and information exchange on dust storms with the UAE, Iraq, Syria, Kuwait, and Saudi Arabia. Saudi Arabia is hosting the world’s first International Conference on Sand and Dust Storms in the Arabian Peninsula next March and the United Nations Convention to Combat Desertification in December 2024.

UK’s Envorem to provide oil sludge cleaning tech to KSA: London-based oil sludge treatment technology provider Envorem is supplying Saudi-based waste management company Greenland Environmental Services with its oil cleaning technology, according to a statement. The yet-to-be-patented technology combines existing methods with hydraulic shock and cavitation — a process where vapor pockets are formed and collapsed rapidly in low pressure spots of flowing liquid — to separate the oil from sludge or oil-contaminated soil left over from production. The tech cleans the solids and recovers the entrained oil without generating emissions, reducing the need for extraction while decreasing emissions from disposal.

A successful pilot in Oman + Kuwait: Envorem completed a pilot of its technology for Oman’s National Oil Company (PDO) last March, successfully removing 99.96% of the oil from sludge and soil, according to their website. Tests on samples of weathered sand provided by the Kuwait Oil Company also revealed a treatment rate that is 10x better than the standard required. Envorem concluded from the pilot that if the value of recovered oil is included, costs are potentially net positive, which would provide a financial incentive to use the technology.

---

Hyundai is providing Neom with substation equipment: South Korea’s HD Hyundai Electric — shipbuilding giant HD Hyundai’s electrical equipment and energy subsidiary — has been selected by Al Gihaz Contracting to supply Saudi Arabia’s Neom with substation equipment under a CNY 67.8 bn (USD 51 mn) contract, the Korea Economic Daily reports. The Korean company will provide transformers, high-voltage circuit breakers, and reactors for the local power company’s substation project — called Neom Mountain — by February 2025.

BACKGROUND- The Saudi Electricity Company awarded Riyadh-based Al Gihaz Contracting a SAR 744 mn (c.USD 198.3 mn) contract to develop the 380/132 KV gas insulated substation for Neom Mountain last month. Gas insulated substations switch, separate, transform, measure and distribute electrical energy in power systems. GE Grid Solution — a renewables arm of General Electric — was selected in June as the supplier of three 380 kV T155 gas-insulated substations needed for Neom’s USD 8.4 bn green hydrogen plant.

---

Cloud-seeding tests are happening in the UAE: The UAE is planning to conduct a total of 40 cloud-seeding flight hours in a month-long campaign, director of UAE Research Program for Rain Enhancement Science (UAEREP) Alya Almazroui told the Khaleej Times in an interview. “The Cloudix campaign will use National Center of Meteorology (NCM) cloud-seeding aircraft and an instrumented Learjet aircraft operated by US-based Stratton Park Engineering Company. Each mission is usually between two to three hours in duration,” Almazroui said. The flights target evaluating the effectiveness of several innovative cloud-seeding methods in increasing rain and determining which technique is best.

How it’s done: Cloud seeding tries to make it rain or snow by putting substances that help water molecules stick together (like silver iodide) into clouds — either by spraying it from a plane or shooting it up from earth. Programs in China and the US show precipitation can increase as much as 10-30% when it works.

REMEMBER- The UAE had set up a research center to support new tech developments in the field. The center has funded 11 projects with over AED 65.7 mn (USD 18 mn) in investments, including one focused on the use of nanotechnology to develop cloud seeding materials.

OTHER STORIES WORTH KNOWING ABOUT THIS MORNING-

• Another waste treatment push in Oman: Oman’s Be’ah has signed an agreement with cargo terminal operator SATS to treat industrial and hazardous waste under the Omani government's efforts to ensure a safe and sustainable environment. (Twitter)
• A step forward for Tunisia’s EV charging: Tunisia’s Agency for Energy Management has opened its first photovoltaic charging station for EVs with support from battery manufacturer ASSAD, carmaker BYD, Tunisian PV panel manufacturer Alphanis, and solar panel installer Sun Solution. (Tunis Afrique Presse)

BMW will begin producing its electric Minis at the Oxford factory: German carmaker BMW is investing GBP 600 mn to establish a manufacturing line of electric Mini Coopers in its Oxford factory, the Guardian reports. The plant will start production of its electric Mini Cooper and the new electric Mini Aceman SUV after the UK government spent GBP 75 mn in subsidies to bail out the automaker from its financial troubles. The decision came after the government agreed to subsidize production, causing BMW to backtrack on a move production to China. Uncertainty remains over whether UK-made electric cars will be subject to EU tariffs as a result of rules that require batteries to be sourced from the UK or the EU, which the UK and carmakers have been lobbying to delay to avoid adding costs to European electric cars. The automaker has already begun producing electric Minis in China since 2019.

Halal alternative meat, anyone? Cell-cultivated protein companies providing alternative offerings to the carbon intensive meat and dairy industry can label their products halal and kosher provided they comply with religious standards as they court a larger demographic of consumers, Reuters reports, citing advice from Islamic scholars in Saudi Arabia to US food startup Eat Just.

Koshering the sector: Cell-cultivated or cultured meat can comply with Islamic law provided they are extracted from halal resources — i.e no pig-derived biopsies, three sharia law scholars told the US food startup Eat Just. Cultured meat creation involves the extraction of tissues from animals or plants then nurturing the sample of cells in a nutrient bath to enable multiplication before genetically modifying the tissues to differentiate between muscle and fat, and then binding the muscle cells into fibers. The Orthodox Union — the world’s largest kosher certification agency — said earlier this month Israeli company SuperMeat’s lab-grown chicken can be considered kosher because its cells were not fed any animal ingredients and were extracted from a fertilized egg before any blood spots appear, Reuters reports.

Where does the industry stand? The US and Singapore are the only countries so far that have approved designs by startups in the jurisdictions for the production of cultured meat. By 2040, 60% of protein consumed by humans could be either grown in vats or replaced by plant-based products that resemble meat. Alternative proteins as a whole could constitute 7.7% of the global protein market by 2030 — rising to USD 162 bn from USD 29.4 bn in 2020.

The MENA market is still small, but it’s growing: Eat Just is partnering with Qatari state-backed Doha Venture Capital and the Qatar Freezones Authority to build a USD 200 mn cultivated-meat facility in Qatar’s Umm Alhoul Freezone. Over in Oman, food technologies company MycoTech and the Oman Investment Authority (OIA) agreed last year to set up a JV to leverage the natural sugar of dates as carbon to fuel the production of mushroom-based protein. OIA and MycoTech are due to start construction on a production facility in 1H 2023, with commercial operations due to begin in 2Q 2025.

Recent regional developments could fuel growth further: The UAE’s Switch Foods kicked off operations on its new alternative protein production factory in Abu Dhabi’s Khalifa’s Industrial Zone last May. Earlier in March, KSA’s petrochemical company Saudi Industrial Investment Group (SIIG) signed an agreement to acquire a 24% stake in Denmark’s sustainable protein company Unibio International. The acquisition will be made through an investment of c.USD 70 mn in the Danish company, with a 9.9% stake acquired in the first phase. The remaining stake would be acquired by SIIG in which the Saudi government owns a 13.1% stake after obtaining necessary approvals for FDI from the Danish government.