OPEC keeps 2024 global oil demand unchanged at 2.25 million bpd

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. 

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.