Riyadh: Minister of Finance Mohammed bin Abdullah Al-Jadaan stressed that Saudi Arabia’s efforts towards sustainability have been at the forefront of the Kingdom’s Vision 2030 policy plan for several years.
He added that “we believe that the financial sector is a key enabler to support the Kingdom’s efforts toward achieving our sustainability goals.”
During his closing remarks at the Financial Sector Conference Talks, the minister made the statements, delivered on his behalf by Assistant Minister of Finance for Macro Fiscal Policies & International Relations Abdulaziz bin Mutib Al-Rasheed.
“Today, I speak to you in my capacity as the Chairman of the FSDP, and I am pleased to say that we have reviewed our strategy and commitments to now include sustainability as a core objective for developing our robust financial system.
Al-Jadaan said this initiative was only the tip of the iceberg under FSDP, adding various government organizations are to launch Green Bonds. Examples of the private sector initiative include the Saudi Electric Company’s issuance of a $1.3 billion International Green Sukuk.
Al-Jadaan explained the innovative sustainable financing techniques where the government no longer pays organizations to replace outdated lighting and air conditioning units; instead, it shares a percentage of the energy savings. The minister added that the latest technologies at desalination had given a better return on CAPEX within 20 months due to the improved energy efficiency.
He concluded, “We are committed to working fully with governments and businesses from around the world to provide a more sustainable economy for ourselves, our future generations, and the world at large firmly based on ESG and sustainable based financing.”