Saudi Arabia’s Climate-Change Driven Transformation of Transportation Infrastructure
In the face of rising climate change concerns, Saudi Arabia is leading the pack in transforming its transportation sector through a series of innovative initiatives.
The Middle East and North Africa region is struggling to manage rapid population growth, swift urbanization, and a growing middle class, which are all putting immense pressure on the current infrastructure and transportation networks.
Saudi Arabia is not just confronting these challenges directly, but also setting an inspiring example for the world.
The World Bank’s 2020 findings suggest that the region needs yearly investments of at least $100 billion for the next 5 to 10 years. Such investments are crucial to maintain existing infrastructure and resolve sector bottlenecks.
Saudi Arabia, strategically situated between Asia and Europe and playing a pivotal role in the global energy market, boasts a comprehensive network of operational facilities.
The same 2022 report from the King Abdullah Petroleum Studies and Research Center disclosed that transportation accounts for 33.33 percent of worldwide energy usage, second only to the industrial sector.
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As per the World Bank’s 2020 findings, the region necessitates yearly investments of $100 billion for the next 5 to 10 years. These investments are indispensable for sustaining existing infrastructure and tackling sector bottlenecks.
However, continuing price controls and efficiency enhancements strive to lower Saudi Arabia’s annual transport emission growth rate from 7 percent historically to 3 percent by 2030.
By 2030, carbon dioxide emissions from transport are projected to reach 184 million tons.
Saudi Arabia is actively implementing three significant policy interventions, as detailed in a 2022 report by the Saudi Ports Authority (Mawani) titled “Enabling Growth and Innovation Across the Saudi Maritime Sector.”
The first strategy emphasizes shifting new car sales to electric vehicles, aiming for these to constitute 30 percent of all Riyadh’s automobiles by 2030.
The second initiative focuses on electrifying public transport vehicles. The third uses incentive programs to guide consumers towards sustainable alternatives to private cars.
Saudi Arabia is constructing larger, more sustainable transport networks to aid in reducing congestion and emissions.
Abdulla Elyas, Co-founder of Careem
In recent years, Saudi Arabia has made substantial strides in reducing emissions and optimizing energy demand.
Saudi Arabia has undertaken domestic energy price reform and fiscal reform under the Fiscal Balance Program since 2015, as the Mawani report revealed.
This approach seeks to make energy consumption more sustainable, boost government revenue by hiking energy prices, and is reflected in the country’s gradual increase in fuel prices.
ENOWA, a subsidiary of NEOM responsible for managing the giga-project’s sustainable energy and water systems, is a prime example of how Saudi Arabia is partnering nature to boost its environmental practices.
ENOWA CEO Peter Terium told Arab News, “Harnessing the abundant sun and wind resources within NEOM, combined with innovative storage solutions and smart grid technologies, ENOWA aims to expand energy generation in NEOM and lead the supply of competitively priced power at a global level, thereby reshaping the prioritization of sustainability and affordability in the energy landscape.”
ENOWA plays a pivotal role in the Kingdom’s infrastructure development.
The firm aims to sculpt a sustainable and efficient energy scene that significantly influences all sectors of the economy, including transport, construction, and industrial manufacturing, as well as water and waste treatment.
Meanwhile, the planned city of NEOM exemplifies Saudi Arabia’s commitment to revolutionize transport, mobility, and infrastructure in response to climate change concerns.
ENOWA aims to increase NEOM’s energy production and pioneer the global supply of competitively priced power, redefining the energy landscape with a focus on sustainability and affordability.
Peter Terium, ENOWA CEO
NEOM Mobility aims to change how people connect and travel by converting the planned city into a sustainable, shared, and seamless experience across air, land, and water.
Ride-hailing is gaining popularity in the country as a part of its transportation evolution, taking into account climate change.
In Saudi Arabia, Careem and Uber are the two major players in this field, with Careem first launching in 2013 and later expanding to serve 26 cities across the Kingdom.
Abdulla Elyas, co-founder of Careem, told Arab News, “Saudi Arabia is currently building larger and more sustainable transportation networks that will contribute to reducing congestion and emissions.”
Careem’s role in connecting these networks through ride-hailing and micro mobility was explained by Elyas.
He added, “Today, Careem is used by Saudi residents and visitors for a reliable, easy and stress-free day-to-day commute in and around their cities.”
When discussing future eco-friendly and green plans, Elyas mentioned the upcoming launch of Careem Bike.
“Introducing Careem Bike in Madinah in partnership with ALMQR Development Co. is the next step in our journey to enhance mobility,” Elyas shared.
“We are proud to support Saudi Arabia’s sustainability agenda and contribute to the Vision 2030 goal of improving the Kingdom’s quality of life,” he added.
As per the cofounder, the Madinah Municipality has constructed 70 km of bicycle paths along main roads and inside residential neighborhoods, which have docked bike stations that can be accessed with just a click of a button.
“Careem Bike is a great option for first-mile and last-mile connectivity – for example, traveling from a train station or bus stop to one’s home or workplace,” Elyas added.
In addition to short trips, bikes are viable for longer voyages, he clarified.
“Cycling is a great way for families and friends to exercise and have fun. We can already see that people in Saudi Arabia enjoy cycling, and we’re excited to facilitate even healthier and more active lifestyles through our new network in Madinah,” Elyas highlighted.
“The service is inclusive and readily accessible. Customers can purchase a pass for daily, weekly, monthly, or yearly use. Each pass offers unlimited access for 45 minutes,” he emphasized.
Saudi Arabia’s sustainable transport strategies are a crucial part of their aim to reduce global carbon emissions by 4 percent, a government official noted at the Global Sustainable Transport Forum held in Beijing from Sept. 25-26, 2023.
During the event, the Saudi Transport and Logistics Services Minister, Saleh bin Nasser Al-Jasser, emphasized that sustainability is an integral component of Saudi Arabia’s Vision 2030.
Al-Jasser pointed out that Saudi Arabia’s strong commitment to sustainability has been seamlessly integrated into the National Strategy for Transport and Logistics during his speech.
The plan involves cutting per person carbon emissions by 2 percent annually, promoting sustainable mobility, electrifying transport and applying them throughout the logistics value chain.
The strategy also includes developing necessary infrastructure to cater to future demand, with the main objective of minimizing traffic fatalities, stated the minister.
Under the ambitious Saudi Vision 2030 reforms, along with the National Transformation Program and National Industrial Development and Logistics Program, the government is set to invest $133.3 billion into developing crucial infrastructure such as ports, airports, and railways by 2030.
This significant financial commitment highlights Saudi Arabia’s dedication to reducing carbon emissions with a strong focus on environmental responsibility as it brings these transformative projects to completion.