Saudi Arabia’s $100bn tech investment shows global leadership on AI, says Microsoft executive

Special Saudi Arabia’s $100bn tech investment shows global leadership on AI, says Microsoft executive
Microsoft wants to help unlock the Kingdom’s full potential in the field of AI and technology. Shutterstock
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Updated 07 June 2024
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Saudi Arabia’s $100bn tech investment shows global leadership on AI, says Microsoft executive

Saudi Arabia’s $100bn tech investment shows global leadership on AI, says Microsoft executive

RIYADH: Saudi Arabia’s plan to invest $100 billion in technology is propelling the Kingdom to the forefront of innovation and talent development worldwide, said a senior Microsoft Arabia executive. 

In February, the Kingdom launched Alat, a technology and artificial intelligence firm backed by the Public Investment Fund, with the aim of pouring funds into Saudi Arabia’s technological sector. 

In an interview with Arab News, Turki Badhris, president of Microsoft Arabia, elaborated on how the Kingdom’s numerous giga-projects and initiatives are harnessing the transformative power of AI. 

“Saudi Arabia is playing, I’m not going to say a regional, but a global role when it comes to leading in AI vision,” he said, later adding: “That illustrates the forward-thinking of the Kingdom, leadership, not only to position Saudi Arabia as a regional hub for AI, but also as a global hub for innovation and talent.” 

Badhris also emphasized that the establishment of a global AI center for Arabic demonstrates the Kingdom’s commitment to promoting the regional language and fostering innovation internationally.  

This aligns with Microsoft’s mission to empower individuals and organizations in Saudi Arabia, contributing to unlocking the Kingdom’s full potential in the field of AI and technology. 

“The recent investment by Microsoft in cloud and AI will contribute to and catalyze the next phase of growth of the ICT market in Saudi Arabia. Our recent announcement on Feb. 23 of bringing Microsoft Cloud Data Center to Saudi will accelerate and diversify the growth of the economy of Saudi Arabia,” he told Arab News. 

Underscoring Microsoft’s commitment to the Kingdom, Badhris stated that the convergence of cloud and AI technologies will have a significant impact on accelerating Saudi Arabia’s gross domestic product growth. 

Furthermore, he forecasted that by 2024, there will be a notable increase in the number of businesses transitioning to cloud computing. 

“That is a great step in transforming their business, and then the next step will be definitely leveraging AI and to many of their business models and workloads,” Badhris continued. 

He added: “We are working closely with the Ministry of Communication and Technology to make sure that we have a smooth, accelerated landing of our data center in Saudi Arabia.” 

Additionally, Badhris emphasized the significant impact that AI and cloud technologies will have on various industries. Microsoft is dedicated to unleashing the potential of these technologies across all sectors in Saudi Arabia. 

The company is undergoing a transformation to become an AI-driven organization, embedding AI capabilities into its products at every level. 

“We have a cloud specialized for healthcare, the same for education, logistics, sustainability, and other sectors. We also have a big ecosystem of partners who are building their IP solutions and bringing them to Microsoft Azure,” Badhris stated. 

He continued: “As just a matter of fact, we just rolled out last week the support of our copilot, M365, with an additional 16 languages and one of them Arabic, and that is showing the commitment of Microsoft to localization to the Arab countries.” 

Badhris emphasized that Microsoft collaborates with organizations across diverse sectors, encompassing both public and private domains, and of all sizes, spanning from startups to large enterprises. 

“We are working with startups and SMEs because we believe that the majority of the economic impact is coming from startups and SMEs. For example, we collaborated lately with the Ministry of Investment, MISA, in a big initiative called Alliance to Innovate,” he said. 

The executive emphasized that despite the progress made in Saudi Arabia, there is still much more potential to be unlocked, stating that “this is just the start.”   

He said: “I still believe that we are scratching the surface in Saudi Arabia. Technology is evolving at a very fast pace, and definitely we really need to be up to the speed of this evolution and bring the best from around the world to Saudi Arabia.”


Qatar, Bahrain sign $1.27bn steel deal 

Qatar, Bahrain sign $1.27bn steel deal 
Updated 18 sec ago
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Qatar, Bahrain sign $1.27bn steel deal 

Qatar, Bahrain sign $1.27bn steel deal 

JEDDAH: Qatar Steel and Bahrain Steel have signed a $1.27 billion agreement to supply 5 million tonnes of the product over five years, aiming to enhance industrial cooperation and strengthen the sector in the region. 

Qatar’s Ministry of Commerce and Industry announced the agreement on Feb. 9, saying that the deal falls within the framework of the Industrial Partnership for Sustainable Economic Development, which promotes private-sector collaboration across member states.

The initiative supports a range of industries, including agriculture, food, and fertilizers. It also extends to pharmaceuticals, textiles, and chemicals. Additionally, the program benefits sectors such as plastics, manufacturing, and minerals. 

The Gulf’s steel industry has experienced significant expansion, driven by major investments in infrastructure and industrial projects.

The ministry highlighted that this strategic partnership would provide Qatar Steel with a stable supply of essential raw materials, enhancing production efficiency and supporting sustainable economic growth. 

The agreement is expected to create new investment opportunities, enhance industrial competitiveness in both Qatar and Bahrain, and strengthen local supply chains. 

By reducing reliance on imported raw materials, the deal aims to boost economic resilience and market stability across the region. 

Bahrain Steel, an iron ore pelletizing company located in the heart of the Arabian Gulf, operates twin plants with a combined capacity of 12 million tonnes of pellets. The company represents a $3.5 billion investment and plays a central role in the region’s steel industry, according to its website. 

Producing a range of pellets for both direct reduction and blast furnace steelmaking, Bahrain Steel sources raw materials via its own port terminal. Three-quarters of its finished products are exported. 

Established in 1974 as the Arabian Gulf’s first integrated steel plant, Qatar Steel began commercial production in 1978 and has been a wholly owned subsidiary of Industries Qatar since 2003.

Headquartered in Messaieed Industrial City, south of Doha, it also operates a UAE-based subsidiary, Qatar Steel Company FZE. 


MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 
Updated 11 min 54 sec ago
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MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

JEDDAH: Saudi Arabia saw $14.9 billion in tech investments on LEAP’s opening day, with major deals led by Saudi Authority for Industrial Cities and Technology Zones, Digital Saudi, and NHC reinforcing its Vision 2030 drive for global tech leadership. 

Being held from Feb. 9-12 in Riyadh, LEAP 2025 is a flagship event in the Kingdom as it aims to become a global and regional tech hub, aligned with Vision 2030 goals. This comes on the back of the Kingdom’s growing push for investment in research, development, and innovation, with a World Economic Forum report projecting it will add $16 billion to Saudi Arabia’s gross domestic product by 2030.  

Here is a wrap-up of some of the major deals signed on day one: 

MODON secures over $1.6bn in digital economy deals 

Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, inked agreements worth more than SR6 billion ($1.6 billion) to boost the Kingdom’s digital economy and enhance technical capabilities. 

Among the key deals was a contract with Link Development Co. to upgrade the Shareek system, aimed at improving the investor experience in industrial, logistics, and investment sectors. 

The authority also signed a SR2.64 billion deal with Saudi data infrastructure firm Ezditek to establish a 64-megawatt cloud data center in Riyadh’s technical zone. DataVolt, a subsidiary of Vision Invest, secured a similar SR2.5 billion investment agreement for a data center in the same zone.  

Further agreements included a SR1.3 billion investment by Gulf Data Hub to build data centers in Dammam Second Industrial City and Jeddah Oasis, covering 163,000 sq. meters. MODON also partnered with the Ministry of Communications and Information Technology to accelerate cloud infrastructure development. The agreement ceremony was witnessed by Ibrahim Alkhorayef, minister of industry and chairman of MODON. 

Additionally, MODON signed a memorandum of understanding with Taibah Valley, an affiliate of Taibah University, to promote the adoption of emerging technologies in the industrial and technical sectors and support research, development, and innovation. 

KAFD, Huawei partner on smart city innovation 

The King Abdullah Financial District Development and Management Co. signed an MoU with Huawei to implement smart city solutions, AI-driven technologies, and 5G-A networks. The partnership aims to optimize operations and enhance the digital experience across KAFD’s 1.6 million sq. meters of development. 

Ramez Al-Fayez, chief information technology officer at KAFD DMC, said the collaboration would help build a “fully integrated urban environment that supports digital transformation.”  

Beyond infrastructure enhancements, the agreement also focuses on technology talent development, offering specialized training programs and globally recognized Huawei certifications such as HCNA, HCNP, and HCIE. 

KAFD and Huawei will additionally collaborate on digital research and analysis to explore emerging technological opportunities, support Saudi Arabia's digital transformation goals, and strengthen Huawei's regional presence. 

GACA taps SiFi for automated expense management 

The General Authority of Civil Aviation partnered with Saudi fintech firm SiFi to automate expense tracking and financial management processes, streamlining operations across the sector. 

Saudi Geospatial Authority, NHC Innovation collaborate  

The General Authority for Survey and Geospatial Information has signed an MoU with NHC Innovation to integrate geospatial data into real estate development, smart mobility, and navigation technologies. The partnership will leverage the Saudi Arabia National Spatial Reference System, or SANSRS, to enhance surveying and data-driven decision-making. 

Key initiatives include integrating the country’s digital maps with the national geospatial platform, utilizing SANSRS for precise surveying, and advancing geospatial intelligence to support data-driven strategies.  

Saudi HR minister unveils digital services initiative 

Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi launched a suite of digital services aimed at improving accessibility and efficiency. The initiatives include a Virtual Branch for online government services, a Digital Childcare Platform for verified childcare center information, and a Social Development Platform to enhance community engagement and transparency. 

The new services align with the ministry’s digital transformation strategy under Vision 2030, enhancing secure and innovative access to government services while fostering technological advancement in the Kingdom. 

These initiatives are part of the ministry’s broader digital transformation efforts, which have automated more than 1,000 services and processes, benefiting over 32 million users, according to the ministry. 

Digital Saudi showcases Kingdom’s tech advancements 

Digital Saudi, the Kingdom’s premier international platform for highlighting digital achievements, kicked off alongside LEAP 2025. 

Serving as a unified stage for Saudi Arabia’s digital transformation journey, Digital Saudi allows government entities to showcase their progress in e-government services, share success stories, and align with global best practices. It also educates the public on how to benefit from digital services. 

The platform further promotes the adoption of cutting-edge technologies, reinforcing Saudi Arabia’s position as a leading digital innovation hub in line with Vision 2030. 


LEAP 2025: $5bn net-zero data center among top investments on day 2 of tech conference

LEAP 2025: $5bn net-zero data center among top investments on day 2 of tech conference
Updated 55 min 32 sec ago
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LEAP 2025: $5bn net-zero data center among top investments on day 2 of tech conference

LEAP 2025: $5bn net-zero data center among top investments on day 2 of tech conference

RIYADH: The world’s first fully sustainable artificial intelligence data center was among the key announcements during the second day of the LEAP 2025 tech conference in Riyadh.

Industry leaders, investors, and policymakers unveiled multi-billion-dollar initiatives to drive digital transformation and technological advancements in the Kingdom, reinforcing the nation’s Vision 2030 ambitions to foster innovation, attract foreign investment, and lead the digital revolution.

A major event highlight was the announcement of a world-first net-zero 1.5-gigawatt data center by DataVolt in NEOM’s Oxagon at a cost of $5 billion.

NEOM’s Deputy CEO Rayan Fayez commented that such investment in Oxagon, backed by previous investment in green hydrogen, further reinforces the Kingdom’s commitment to renewable energy and sustainable urban development.

 

 

Mobily’s AI and connectivity plans

Salman Bin Abdulaziz Al-Badran, CEO of Mobily, revealed the company’s plans to invest more than $900 million to develop and expand data centers, submarine cables, and cross-border connectivity to support AI-driven demands. 

“We have in Mobily a 39-megawatt data center capacity to be deployed, with 13 MW already completed and set to go commercial by the end of Q1,” he said.

In addition, Mobily is investing in submarine cables to enhance connectivity, with projects linking Africa and the Gulf to the Red Sea aimed at strengthening digital infrastructure across the region.

Alfanar’s leap to the future

Amer Al-Ajmi, executive vice president of Alfanar, outlined the company’s significant contributions to Saudi Arabia’s digital transformation, including the completion of 5 million smart meter replacements in just 13 months. 

He also described a new $1.4 billion investment in four data centers across two cities as “our leap to the future.”

Zoom and Skyfive Arabia expand in Saudi Arabia

Zoom’s Global Chief Information Officer Gary Sorrentino, made a significant commitment to the Saudi market, announcing a $75 billion investment in the Kingdom. 

Meanwhile, Mohannad Kalash, vice president of Zoom Communications for the Middle East, Turkiye, Africa, and Pakistan region, confirmed plans to establish a new data center in Riyadh.

SkyFive Arabia CEO Mohamed AbdelRehim announced an initial investment of $100 million to expand in Saudi Arabia, Turkiye, and South Africa, “with an ambition to connect more than 1,000 aircraft,” he added.

SkyFive Arabia is also committed to bringing high-speed 100 megabits per second connectivity to aircraft, ensuring inflight Internet services are comparable to home broadband speeds.

Hewlett Packard Enterprise and SAR drive localization efforts

Mohammad Al-Rehaili, managing director of Hewlett Packard Enterprise for the Middle East, announced a major localization milestone with the manufacturing of HBA Aruba networking equipment in the Kingdom. 

More than 20,000 units will be produced annually, improving supply chain efficiency in the nation by 30 percent, he noted.

Meanwhile, Abdullah Al-Yousef, infrastructure vice president at Saudi Arabia Railways, revealed that the company had obtained a license from the Communications, Space and Technology Commission to lease telecom infrastructure commercially, allowing it to extend its fiber optic and telecom tower network.

Saudi Arabia’s tech future

LEAP 2025, being held in Riyadh until Feb. 12, continues to draw global investors and technology pioneers to Saudi Arabia, reinforcing the country’s commitment to advancing AI, connectivity, sustainability, and digital transformation.

Haytham Al-Ohali, vice minister of the Ministry of Communications and Information Technology, emphasized the evolution of the event, saying: “When we started LEAP back in 2022, it was really about bringing four key ingredients to the table: the power of investments, industry leaders and knowledgeable speakers, the latest global technology, and cutting-edge innovation from our entrepreneurs and startup community.” 

The minister highlighted that over $30 billion has been invested in Saudi Arabia’s tech sector over the past three years, in addition to the $14.9 billion announced during the first day of LEAP 2025.

Al-Ohali also underlined the country’s commitment to making artificial intelligence accessible, saying: “Saudi is doing its part to democratize inferencing to more than 4 billion people that live in the Kingdom.”


Oil Updates — crude climbs as investors weigh new US tariffs

Oil Updates — crude climbs as investors weigh new US tariffs
Updated 10 February 2025
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Oil Updates — crude climbs as investors weigh new US tariffs

Oil Updates — crude climbs as investors weigh new US tariffs

SINGAPORE: Oil prices ticked higher on Monday even as investors weighed US President Donald Trump’s latest tariff threat, this time on all steel and aluminum imports, which could dampen global economic growth and energy demand.

Brent crude futures climbed 54 cents, or 0.7 percent, to $75.20 a barrel by 10:34 a.m. Saudi time while US West Texas Intermediate crude was at $71.50 a barrel, up 50 cents, or 0.7 percent. The market posted its third consecutive weekly decline last week on concerns about a global trade war.

Trump said he will announce on Monday 25 percent tariffs on all steel and aluminum imports into the US, in another major escalation of his trade policy overhaul.

Just a week ago, the president announced tariffs on Canada, Mexico and China, but suspended those for the neighboring countries the next day.

In light of Trump’s temporary backdown last week, investors appeared to be shrugging off the steel and aluminum tariff threat for now, Tony Sycamore, a Sydney-based analyst at IG said.

“The market has realized tariff headlines are likely to continue in the weeks and months ahead,” he said, adding that there was an equal chance they could be walked back or even increased at some point in the near future.

“So perhaps investors are coming to the conclusion it’s not the best course of action to react to every headline negatively.”

China’s retaliatory tariffs on some US exports are due to take effect on Monday, with no sign as yet of progress between Beijing and Washington.

Oil and gas traders are seeking waivers from Beijing for US crude and liquefied natural gas imports.

Trump said on Sunday that the US is making progress with Russia to end the Ukraine war, but declined to provide details about any communications he had with Russian President Vladimir Putin.

Sanctions imposed on Russian oil trade on January 10 disrupted Moscow’s supplies to its top clients China and India.

Washington also stepped up pressure on Iran last week, with the US Treasury imposing new sanctions on a few individuals and tankers that help to ship millions of barrels of Iranian crude oil per year to China.

Sanctions on Iran and failure to reach a nuclear deal are upside risks to oil prices even though Trump’s policies are aimed at driving energy prices lower, Citi analysts said in a note.

“We see oil likely trading sideways to down over the next month or so, with the fundamental downward pressure building on crude in our base case throughout the year,” they said.

Brent is forecast to average $60 to $65 a barrel in the second half of 2025 as Trump will be persistent in his desire to lower energy prices, and he will ultimately prove to be a bearish influence on the oil market, Citi said.


Manufacturing sector drives Saudi industrial growth to 2.1%

Manufacturing sector drives Saudi industrial growth to 2.1%
Updated 10 February 2025
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Manufacturing sector drives Saudi industrial growth to 2.1%

Manufacturing sector drives Saudi industrial growth to 2.1%

RIYADH: Saudi Arabia’s Industrial Production Index recorded a 2.1 percent annual increase in December, driven by a rise in manufacturing activity and waste management services, according to recent data.

Figures from the General Authority for Statistics show that non-oil activities expanded by 4 percent year on year, reflecting growth across most sectors except for electricity and gas supply.

Manufacturing emerged as the main driver of growth, recording a 6.3 percent annual increase, according to the report.

The latest IPI figures reinforce Saudi Arabia’s economic diversification efforts under Vision 2030, as the Kingdom continues to expand its industrial base and attract investment beyond oil.

The growth in manufacturing and non-oil activities highlights the ongoing structural transformation of the Saudi economy, positioning the country as a key player in the global industrial landscape.

The manufacturing sector’s expansion was supported by a strong performance in key industries, particularly the production of coke and refined petroleum products, which surged 9.3 percent year on year.

This refers to the processes of refining crude oil into fuels and chemicals such as gasoline, diesel, and jet fuel, as well as producing coke by heating coal in low-oxygen conditions. Coke, a carbon-rich product, is primarily used in steel production.

The chemical manufacturing sector also contributed to the increase, rising 4.8 percent annually. Similarly, the food industry saw an 8.8 percent annual rise, while the paper products sector grew by 8.7 percent. The electrical devices sector posted a 10.5 percent increase during this period.

Mining and quarrying activity, which holds significant weight in the general index, declined 0.4 percent year on year in December. The sector also recorded a 0.2 percent drop compared to November, reflecting the impact of reduced oil production levels.

Meanwhile, utility-related activities showed mixed performance. The water supply, sewerage, and waste management sector grew 0.8 percent annually but saw a 1.9 percent monthly decline.

The electricity, gas, steam, and air conditioning supply sector registered a 1.9 percent annual decline, with a sharper 15.6 percent monthly drop.

Meanwhile, the oil sector posted an annual increase of 1.3 percent, despite a slight reduction in Saudi Arabia’s oil production, which declined to 8.91 million barrels per day in December compared to 8.94 million bpd a year earlier.

As the Kingdom seeks to reduce its reliance on oil revenues, refining and petrochemical sectors have become key pillars of economic diversification.

The production of refined fuels such as gasoline, diesel, and jet fuel not only supports domestic energy needs but also contributes to the Kingdom’s export capacity, generating significant non-oil revenues.

Additionally, coke production, primarily used in the steel industry, strengthens Saudi Arabia's industrial base, supporting its ambitions in sectors like construction, infrastructure, and manufacturing.

These industries align with Vision 2030, driving economic growth while fostering technological innovation, job creation, and value-added production within the Kingdom’s non-oil economy.