Saudi Arabia’s industrial production rises in August on mining gains
Mining and quarrying expanded 0.8% year on year, as Saudi oil output rose to 8.99 million barrels per day
Manufacture of coke and refined petroleum products decreased by 11.3%
Updated 10 October 2024
Nirmal Narayanan
RIYADH: Saudi Arabia’s Industrial Production Index climbed 1 percent in August compared to the same month last year, driven by a rise in mining and quarrying activities, according to official data.
According to the General Authority for Statistics, mining and quarrying expanded 0.8 percent year on year, as Saudi oil output rose to 8.99 million barrels per day, up from 8.92 million bpd a year earlier.
The growth pushed the IPI to 105 points for the month, marking steady industrial expansion.
The Kingdom’s manufacturing sector has consistently expanded in recent years, driven by Vision 2030’s push to diversify the economy and enhance industrial output, reducing the country’s reliance on oil revenues.
This aligns with broader economic goals aimed at creating a sustainable, non-oil-based growth model.
“Compared to August of the previous year, the sub-index of manufacturing activity increased by 1.1 percent, supported by an increase in the manufacture of chemicals and chemical products, and manufacture of food products which increased by 2.9 percent and 12.9 percent, respectively,” stated GASTAT.
Meanwhile, the manufacture of coke and refined petroleum products decreased by 11.3 percent.
The report added that electricity, gas, steam, and air conditioning supply rose by 4.1 percent year on year, although water supply, sewerage, and waste management activities fell 0.9 percent.
GASTAT highlighted that non-oil activities surged 7 percent compared to July, while oil-related output dropped 1.4 percent.
On a month-to-month basis, the overall IPI slipped 0.3 percent from July. The sub-index for mining and quarrying activity increased by 0.6 percent, while manufacturing output fell 1.8 percent.
GASTAT further noted that electricity, gas, steam, and air conditioning supply activities increased by 1.7 percent month on month, while water supply, sewerage, waste management, and remediation activities rose by 1 percent.
However, the index for oil activities dropped by 0.7 percent in August compared to the previous month, while non-oil activities recorded a 0.6 percent increase.
The IPI is an economic indicator that measures fluctuations in industrial output, calculated through the industrial production survey. It follows the International Standard Industrial Classification of All Economic Activities to ensure consistency and comparability across sectors.
MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day
Updated 9 sec ago
MOHAMMED AL-KINANI
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
Updated 43 min 47 sec ago
Miguel Hadchity
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.
To enhance the Kingdom's AI capabilities, @DataVolt_KSA announced at #Leap25 an investment in @NEOMOxagon to develop a large-scale, innovative AI data center campus in NEOM, making it a global destination for advanced computing and innovation. #LEAP25pic.twitter.com/4cfsuMDVp2
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
Updated 10 February 2025
Reuters
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%
Updated 10 February 2025
Dayan Abou Tine
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.
Saudi Arabia bets on flying taxis and autonomous vehicles to transform mobility
Updated 10 February 2025
Tamara Aboalsaud
RIYADH: Saudi Arabia is positioning itself at the forefront of mobility innovation, with industry leaders highlighting the potential of flying taxis and autonomous vehicles at the LEAP conference in Riyadh.
FlyNow, a developer of electric aviation solutions, is preparing to roll out a modular system of helicopters to transport goods and passengers, according to co-founder and chief operating officer Yvonne Winter.
“Economic growth is tightly linked to mobility,” Winter said during a panel discussion, adding: “And to solve traffic issues related to congestion, air quality pollution, and noise pollution, air transportation is the way to go.”
She described this new industry as “the low-altitude economy,” and insisted that “together we have to find a way to unlock it.”
FlyNow COO and co-founder Yvonne Winter. AN Photo
Winter noted that one of the biggest challenges for international governments and regulatory bodies is the absence of a feasible blueprint for implementation — an issue FlyNow has tackled with a step-by-step approach that “is considered to be very safe.”
As part of this approach, a regulatory sandbox has been developed to validate different vehicles, air traffic management systems, and operational reports before progressing to cargo applications.
Following extensive cargo trials over low-population areas, FlyNow plans to expand testing to urban settings and passenger transport.
Winter said e-helicopters will reduce waiting times and be both affordable and accessible to the public.
Mobility push
Ayman Mesfer, general manager of the Intelligence and Future Sector at the Ministry of Transport and Logistics Services, said Saudi Arabia is embracing new technologies across all transportation modes: land, air, and sea.
The ministry plans to launch an incubator to provide financial and advisory support for small and medium-sized enterprises working on mobility solutions.
Ayman Mesfer, general manager of the Intelligence and Future Sector at the Ministry of Transport and Logistics Services. AN Photo
“The ministry will take a look at deployment of new and major technologies from all aspects, from AI applications, data utilizations, as well as the talents as the enablers, and the infrastructure,” Mesfer said.
Omaima Bamasag, deputy of transport enablement at the Transport General Authority, highlighted the agency’s new Future Mobility Program. The initiative comprises 12 stakeholders from both the public and private sectors, working to identify gaps in Saudi Arabia’s mobility systems and propose new plans.
Omaima Bamasag, deputy of transport enablement at the Transport General Authority. AN Photo
Approved by the Higher Committee for Transportation, led by Crown Prince Mohammed bin Salman, the committee has already introduced 216 projects and identified 16 gaps, with alternative projects designed to bridge them.
Key successes include the development of a framework for autonomous vehicle policies, pilot requirements for AVs, the deployment of scooters during the past two Hajj seasons, a student shuttle at King Saud University, and Jahez food delivery services during Hajj.
“This is all piling up toward realizing AV ambitions and validating the AV policy and regulation that has been put forward. And keep an eye out for a pilot AV taxi that you will be seeing soon here in Riyadh,” Bamasag said.
Infrastructure and partnerships
According to Mesfer, the Ministry of Transport and Logistics Services has partnered with multiple entities to develop the regulatory framework and infrastructure for these technologies.
Alongside the General Authority for Civil Aviation, the ministry has developed an advanced air mobility roadmap tracking aviation and drone deployment.
It has also partnered with King Abdullah University of Science and Technology to construct a new testing ground, described as a “living lab” to assess technologies across land, maritime, railway, and aviation sectors. Additional collaborating entities include TGA and the Roads General Authority.
The country has already piloted an air taxi in NEOM, signaling its commitment to integrating futuristic transportation solutions.
In November 2023, TGA established a regulatory sandbox to facilitate the testing of unregulated mobility technologies. Since then, five business models have emerged: micromobility, e-scooters, e-car rentals, ride-sharing, and drop-off and pick-up boxes.
“Gathering all these challenges, trying to resolve them, and paving the way for these technologies to be regulated and then licensed.
Once these technologies or companies are licensed, they will have a tremendous impact on GDP and job creation,” he said.
On innovative mobility solutions, Antonio Jara, chief security officer of Libelium, spoke about the company’s work in Saudi Arabia and Europe to create digital twins for low-emission zones. These models integrate data from IoT sensors, noise, and air quality metrics.
Antonio Jara, chief security officer of Libelium. AN Photo
Jara emphasized the importance of data spaces for normalization, smart modeling, classification, and quality assessment, creating a secure data exchange platform between stakeholders.
That data is then incorporated into AI models, such as zonification for clustering, pollution simulation and forecasting or digital twins, CO2 equivalent modeling, and low-emission zone analysis.
These models help track pollution sources, provide sustainability impact assessments, and monitor crowd movement.
Libelium’s AI capabilities include data standardization, already implemented in major cities such as Amsterdam, Helsinki, and Paris. Other models focus on traffic prediction, meteorological data, clustering, and an LEZ service model for impact assessment.
Speaking to Arab News about Saudi applications, Jara said: “Aramco, Johns Hopkins — they are optimizing parking with these AI models. NEOM is another real example; they are monitoring all the pollution propagation from the tunnels, The Line.”
Pollution tracking involves both real-time data and predictive analysis.
“We are also doing a proof of concept in Riyadh municipality because they want to understand the real benefit of the metro in reducing traffic-related pollution,” Jara added.
