Saudi Gazette report

RIYADH — Minister of Investment Khalid Al-Falih said that Saudi Arabia is working towards achieving net-zero carbon emissions by 2060 through massive investments in infrastructure. He anticipated that these investments will reach trillions of dollars in the coming years, with 40 percent of the expected $500 billion investments coming from the private sector.

Al-Falih made the remarks while attending a panel discussion at the Development Finance Conference (MOMENTUM2025) in Riyadh on Tuesday.

The minister clarified that this investment liquidity will flow through multiple channels, most notably privatization programs, Ministry of Energy projects, and initiatives by leading national companies, particularly ACWA Power, in addition to Aramco's expansion in the global production and marketing of blue hydrogen.

Al-Falih affirmed that the Kingdom and the region are witnessing a significant transformation in infrastructure development investments. He also highlighted the close cooperation between Saudi Arabia and Egypt in improving the financing and investment system to strengthen value chains and address global challenges.

Al-Falih said that the Kingdom is not only committed to the Paris Climate Agreement, but has also exceeded its targets for reducing carbon emissions, relying on balanced energy strategies that include generating 50 percent of its electricity from renewable energy sources, in addition to high-efficiency gas turbines and battery storage technologies.

On the digital transformation front, Al-Falih revealed ambitious plans to position the Kingdom as a global hub for artificial intelligence. This will be achieved through agreements with leading international companies and the development of digital infrastructure serving the transportation, airport, and smart city sectors.

He highlighted the legislative framework supporting green finance, noting that the Debt Management Office has launched a green finance framework. The Capital Market Authority has established regulations for green bonds, and the Tadawul platform is working to expand the carbon credit market, which is the largest in the Middle East and among the largest globally.

The minister said that the Kingdom accounts for the largest share of green finance and environmental, social, and governance (ESG) initiatives in the Middle East, representing approximately two-thirds of regional efforts in this sector. This is further supported by the Public Investment Fund's expansion into sustainable financing instruments, including 100-year green bonds.

Al-Falih emphasized that the Kingdom possesses a clear vision, robust strategies, and a large domestic market, positioning it to play a pivotal global role in the future of investments, infrastructure, and sustainable development.

He explained that comparing the standards of returns and credit rating shows that the Kingdom offers good return levels compared to developing countries, at a time when it has the strongest credit rating in the region, and even surpasses some G7 countries, making it an attractive destination for international capital, including that coming from China and the G7 countries through asset managers in the United States and Europe.

Al-Falih pointed out that sustainable infrastructure has become a key focus of the Kingdom's plans, explaining that four major airports will be included in the sustainability projects, in addition to a significant expansion of desalination projects to meet increasing needs by 2030 with the growing population and expatriates. The tourism sector also constitutes an important contributor, with the Red Sea Project, in which ACWA Power is involved, standing out as a global example of advanced environmental projects, in addition to green building and the development of airports and logistics centers.

Al-Falih said that Saudi Arabia is approaching the 15th position among the world's largest economies, based on strong economic assets and an effective partnership base with the private sector. He noted that local and international partners contribute real value through their participation in implementation, not just investment.

Al-Falih emphasized that the Kingdom has a long track record of executing major projects to a high standard and within precise timeframes, while continuing to develop new operational methods in cooperation with global financiers. He noted that the Kingdom's spirit of ambition and innovation, coupled with the availability of capital, enables it to lead the next phase of sustainable financing and investment.