2024 marks Saudi Arabia’s bold leap toward technological leadership

2024 marks Saudi Arabia’s bold leap toward technological leadership
Saudi Arabia is poised to continue shaping the future of technology, creating growth opportunities, and enhancing the quality of life for its citizens. Shutterstock
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Updated 31 December 2024
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2024 marks Saudi Arabia’s bold leap toward technological leadership

2024 marks Saudi Arabia’s bold leap toward technological leadership
  • Kingdom launched ALLaM, a generative AI model tailored specifically for the Arabic language
  • Technology also played a critical role during the Hajj season

RIYADH: Saudi Arabia’s digital transformation journey reached new heights in 2024, solidifying its position as a global leader in technology and innovation. 

Guided by Vision 2030, the Kingdom continued to reshape its economic and social landscapes through extensive digital initiatives spanning government, the private sector, and international partnerships. From advancements in artificial intelligence to significant strides in the digital economy, Saudi Arabia’s achievements over the past year set the stage for even bolder ambitions in 2025.

Revolutionary achievements

One of the standout accomplishments of 2024 was the consolidation of government data. The creation of a centralized data lake integrated 27 large systems with over 322 systems in the National Data Bank. This initiative not only enhanced the quality of national data but also automated data-sharing processes, fostering collaboration across entities and delivering substantial cost savings.

Saudi Arabia also launched ALLaM, a generative AI model tailored specifically for the Arabic language. Integrated into IBM’s Watsonx platform, ALLaM was recognized as the leading generative AI model for Arabic, as measured by the Arabic MMLU benchmark. This innovation underscored the Kingdom’s commitment to preserving its cultural and linguistic heritage while advancing global AI standards.

“Saudi Arabia’s digital transformation initiatives, driven by Vision 2030, have created a strong foundation for the Kingdom to emerge as a global leader in technology and innovation,” said Louise Bou Rached, sales director for the Middle East, North Africa, and Turkiye region at Milestone Systems, in an interview with Arab News. 




Louise Bou Rached, Sales Director, MENAT at Milestone Systems. Supplied

She continued: “The strategic focus on AI, IoT (Internet of Things), 5G, and cloud infrastructure is enabling the development of smart cities, digital governance, and innovative industries.”

Bou Rached highlighted initiatives like NEOM and The Line, which combine cutting-edge technology with sustainability to redefine urban living and attract global attention. “This transformation is enhancing the Kingdom’s international reputation and driving economic diversification, positioning Saudi Arabia as a model for other nations aspiring to achieve technological leadership,” she said.

A key element in this transformation has been the integration of advanced video management systems across smart city projects, improving security, efficiency, and data-driven decision making. “VMS technology ensures the seamless operation of urban environments and aligns with the Kingdom’s broader vision of fostering a secure and intelligent ecosystem,” Bou Rached added.

Technology also played a critical role during the Hajj season, with advanced AI solutions ensuring the safety and well-being of millions of pilgrims. Smart platforms like Basier and Sawaher deployed over 400 AI-linked cameras across key locations, including tunnels and the Jamarat facility. These systems provided real-time crowd density analysis, enabling authorities to address emergencies efficiently. This initiative marked a significant leap in combining AI with large-scale event management.

“Projects involving smart cities, artificial intelligence, and renewable energy are shaping new industries and lifestyles in Saudi Arabia,” said Arun Leslie John, the chief market analyst at Century Financial, in an interview with Arab News. Smart cities like NEOM, he noted, are redefining urban living with intelligent systems that optimize resource management, sustainability, and citizen engagement.

“AI is reshaping industries, from health care to logistics, by enabling predictive analytics, automating processes, and improving efficiency,” he added. John also pointed out that the implementation of Open RAN technology is “seriously changing the scene of the country’s telecommunications sector, offering flexible and cost-efficient network infrastructure, essential for extending 5G and upcoming 6G networks.” 

“Companies specializing in such technologies can take advantage of the emergent demand for improved telecommunication solutions,” John said.




Arun Leslie John, Chief Market Analyst at Century Financial. Supplied

AI discussions

Saudi Arabia reinforced its position as a global AI leader by hosting the third Global AI Summit, which brought together world leaders, researchers, and industry experts to discuss ethics, developments, and the future of AI. The event emphasized the Kingdom’s commitment to becoming a hub for AI innovation.

The country also launched the Open Access National Gateway, providing scientists and researchers access to more than 1,000 advanced laboratories. This initiative bolstered Saudi Arabia’s ability to attract top talent, foster innovation, and drive scientific breakthroughs across various fields. 

The establishment of the National Semiconductor Hub marked a significant milestone in the Kingdom’s drive for technological independence. Launched in partnership with top institutions like King Abdullah University of Science and Technology, the hub supports multiple initiatives, including a joint master’s program with the University of California and Princess Nourah University. Over 850 professionals were trained to localize semiconductor technology, further cementing Saudi Arabia’s place in the global tech landscape.

“Saudi Arabia’s investment in space exploration is about exploring the cosmos and leveraging satellite technology to advance telecommunications, agriculture, and disaster management. These advancements are driving diversification away from oil dependency, creating a high-tech economy that attracts global investments and cultivates homegrown innovation,” Bou Rached noted.

Saudi Arabia’s digital transformation efforts received global recognition in 2024. The Kingdom achieved several milestones such as securing the second place among G20 countries in the ICT Development Index and sixth place globally in the UN E-Government Development Index, climbing 25 positions.

These achievements underscored Saudi Arabia’s progress in delivering efficient, accessible, and citizen-centric digital services.

In the space sector, Saudi Arabia celebrated the graduation of 15 startups from the Space Tech Entrepreneurship Program, which offered financial support, training, and mentorship. This initiative attracted both domestic and international investments, highlighting the Kingdom’s growing influence in the space industry.

The Kingdom also secured over SR41 billion ($10.9 billion) in foreign and domestic investments in technology and data centers in 2024. These investments were complemented by enhancements to digital infrastructure, including efforts to localize emerging technologies and establish a thriving innovation ecosystem.

Notable initiatives included the Cloud First Policy, which prioritized cloud-based solutions across government entities and the expansion of 5G networks, positioning Saudi Arabia among the top 10 countries globally for mobile Internet speeds.

In March, the Kingdom unveiled an updated Digital Transformation Index, designed to elevate public sector adherence to technological advancements. The revised standards, reduced from 125 to 96, aimed to improve the quality of e-government services in line with Vision 2030. More than 233 entities participated in workshops to refine methodologies, contributing to an 85.53 percent overall progress rate in digital transformation.

‘Into New Worlds’

Scheduled for February 2025 in Riyadh, LEAP – the Kingdom’s premier tech-focused conference and exhibition – will bring together 1,000 expert speakers, 680 startups, and over 215,000 global attendees. Under the theme “Into New Worlds,” the event will explore cutting-edge technologies and their practical applications. The 2024 edition of LEAP surpassed previous ones, with agreements worth more than $12 billion being signed.

Greater achievements on the horizon

Saudi Arabia’s roadmap for 2025 builds on the transformative momentum of 2024, with ambitious plans designed to further elevate the Kingdom’s global standing in technology and innovation. In AI and data advancements, efforts will focus on increasing the number of datasets in the National Data Bank to improve accessibility and foster greater collaboration.

The adoption of AI across government entities will be further strengthened to stimulate innovation and improve service delivery. Expanding the scope of the National Smart Cities Platform will be a key priority, with an emphasis on security, safety, and sustainability, while introducing new use cases to enhance quality of life and environmental conservation.

In space exploration, Saudi Arabia plans to manufacture and launch a satellite dedicated to investigating space weather as part of the Artemis 2 mission to the moon. Economically, the Kingdom aims to bolster the ICT sector’s contribution to its gross domestic product by introducing two additional multibillion-dollar companies, bringing the total number of such companies to eight.

As 2025 unfolds, Saudi Arabia is poised to continue shaping the future of technology, creating growth opportunities, and enhancing the quality of life for its citizens. By building on its 2024 achievements, the Kingdom is well-positioned to realize its Vision 2030 goals and establish itself as a global leader in the digital era.


Red Sea Global to fund new destinations through residential sales proceeds: CFO

Red Sea Global to fund new destinations through residential sales proceeds: CFO
Updated 13 February 2025
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Red Sea Global to fund new destinations through residential sales proceeds: CFO

Red Sea Global to fund new destinations through residential sales proceeds: CFO

RIYADH: Saudi Arabia’s Red Sea Global is leveraging the proceeds from its residential sales to finance upcoming projects along its coastal properties, according to the company’s top executive.

In an interview with Arab News during the Public Investment Fund’s Private Sector Forum, RSG’s Group Chief Financial Officer Martin Greenslade disclosed that the company intends to sell around 300 residences in its Red Sea development, along with a similar number at its wellness-focused destination, AMAALA.

“Those residences are available to anyone to purchase, both Saudis and international buyers. We’ve already sold some of them, some of those have been reserved, and the pricing for that is anywhere up from SR5 million ($1.3 million) upward. There’s something to suit every taste and every budget,” Greenslade said.

The CFO added that revenue from these sales serves as a critical source of funding for RSG’s long-term plans. “This external investment, as people buy those residences, is an important driver of funding for us,” he said.

Infrastructure development

RSG has already invested more than $20 billion into its flagship projects, with an equal or greater amount expected to be invested in future developments, according to the company’s top official.

Initial funding for infrastructure was provided by the Saudi government and the sovereign wealth fund, with additional support from bank loans and public-private partnerships for key utilities, such as solar energy and water treatment.

To finance the Red Sea project, RSG secured a SR14 billion green financing facility in 2021, which has been fully utilized to support the final stages of development. Greenslade emphasized that future funding will continue to come from a combination of residential sales, bank loans, and external investments.

“We are actively exploring co-investment opportunities, similar to our partnerships for the Four Seasons and Jumeirah hotels, where we have sold 50 percent stakes to external investors,” he noted.

Growing tourism and occupancy targets

Despite limited international flight options, with service currently only available from Dubai, RSG has seen strong demand from domestic and Gulf Cooperation Council tourists.

Five hotels have already opened, with 11 more scheduled to launch this year on Shura, the main hub island of The Red Sea development.

Although the company has not released specific occupancy figures, Greenslade expects the numbers to align with global luxury destinations over time, aiming to reach the 70 percent occupancy benchmark.

“The full launch of the destination is planned for the end of 2025, once all hotels are operational,” he explained. “We anticipate stronger occupancy rates as international connectivity improves, given that global travelers typically stay longer.”

Investment opportunities

“We’ve led to over SR20 billion of contracts, 70 percent of that has gone to Saudi based organizations,” he said.

The company is inviting businesses to establish operations in the Red Sea area, spanning retail, hospitality, and entertainment sectors.

Entrepreneurs with unique tourism-related offerings are encouraged to invest, though Greenslade underlined that quality control and operational expertise are key criteria for entry.

“Yes, we’re looking for entrepreneurs, we’re looking for people who want to bring, who believe they have, something to bring to the tourists that will be coming to our destination,” he said.

“We have created our own seaplane and diving companies due to initial service gaps, but we are actively training and hiring local talent, with over 500 graduates from our vocational programs already employed,” he added.

Environmental sustainability is a core focus of RSG’s strategy. The company plans to plant and restore 50 million mangroves over the next five years and has mapped 180 coral reefs using artificial intelligence to ensure ecological preservation.

The Red Sea destination is entirely solar-powered, with electric vehicles and water sports helping to maintain a carbon-neutral footprint.

Moving forward, RSG will continue to incorporate green financing into its funding strategy, further reinforcing its commitment to regenerative tourism.

“The savings from our solar farms alone will prevent over a million tonnes of carbon dioxide emissions annually,” Greenslade emphasized.

 


Saudi nationals make up 70% of Red Sea Global workforce: top official

Saudi nationals make up 70% of Red Sea Global workforce: top official
Updated 13 February 2025
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Saudi nationals make up 70% of Red Sea Global workforce: top official

Saudi nationals make up 70% of Red Sea Global workforce: top official

RIYADH: Saudi Arabia’s multi-project developer Red Sea Global currently employs 70 percent of its workforce from the local population, according to the firm’s group chief financial officer.

Speaking at the PIF’s Private Sector Forum in Riyadh on Feb.13, Martin Greenslade said that the Kingdom’s leisure tourism industry witnessed substantial growth in recent years, as the country welcomed 17.5 million tourists in 2024, representing a rise of 656 percent compared to 2019.

These developments align with Saudi Arabia’s National Tourism Strategy, which aims to attract 150 million tourists by the end of this decade.

“In our company, we are around 70 percent Saudis. When it comes to the hotels and the workforce, that is something we are scaling rapidly by providing opportunities to as many people as we can,” said Greenslade.

He added: “Saudi Arabia is witnessing a massively growing environment of leisure tourism. Over the last five years, leisure tourists increased in Saudi Arabia by over 600 percent, 17.5 million visitors a year, just for leisure tourism. If we add all the other tourists, we are well over 100 million. So, we are on a sweet spot of growth.”

Regarding the number of visitors to the Red Sea, Greenslade revealed that the figures are still in the thousands as hotels are currently under development, adding that they will grow significantly in the coming years.

He added that 92 percent of visitors to the Red Sea are from the Gulf Cooperation Council region, with the majority being Saudi citizens.

“Right now, we only have these few hotels opened, and they have a very limited number of keys. So, the number of tourists is in the thousands. And they have largely come from the Gulf Cooperation Council. So, there have been some challenges with international tourism; the events in Gaza are challenging. But we are putting on more international flights,” said Greenslade.

He added that Shura Island, which falls within the Red Sea, will see the opening of 11 hotels in 2025, while seven hotels will be opened in AMAALA this year.

During the talk, the Red Sea official added that the company has paid over $20 billion in contracts to suppliers, and around 70 percent of that has gone to Saudi-based organizations.

Greenslade said about the potential spending in 2025: “I do not want to give the exact amount this year, but we are spending billions of dollars a year on developing this destination. Some of those are funded through debt financing and some of those from the PIF.”

Greenslade added that developing the residential side of the Red Sea is very important, as it is one of the best ways to attract private investments.

He highlighted that individuals wishing to consider the Red Sea a second home can also buy a residential unit.

“When you finish the visit to Red Sea, you feel so sad to leave, and if you never want to leave, you can buy your own residence,” said Greenslade.

He mentioned that tourists visiting the Red Sea will have an unforgettable experience.

“If you want to go to somewhere truly breathtaking, somewhere iconic, somewhere very different from anywhere else on earth, you book a ticket to the Red Sea. You would fly and land at the brand-new airport. The airport in the Red Sea has a runway large enough to take any plane,” said Greenslade.

He added: “Tourists visiting the Red Sea will get an electric vehicle to reach the seaplane terminal or boat where they will be guided to an island. These islands are incredible, the corals are fantastic, the snorkeling is amazing.”

The official further said that the company is eyeing to plant 50 million mangroves in the Red Sea project, aimed at ensuring sustainability.

He also highlighted that resorts in the Red Sea are fully powered using solar energy, and the same initiative will also be taken in AMAALA.

“We want to redefine how tourism interacts with the environment. We call it regenerative tourism. Mangroves are very important. We are looking to plant and preserve around 50 million mangroves. Mangroves are extremely important to coastal protection and for the wildlife that settles in and around it,” said Greenslade.

He added: “We are aiming to increase biodiversity by 30 percent. So, we have got an enormous nursery, a million sq. feet building, one of the largest nurseries in the world. We will see some 30 million plants go through there.”


Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

Saudi Arabia’s NEOM partners with Paradromics to transform neurological care
Updated 13 February 2025
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Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

Saudi Arabia’s NEOM partners with Paradromics to transform neurological care

JEDDAH: Saudi Arabia’s $500 billion NEOM project is making a major investment in Paradromics, a pioneering company in brain-computer interface technology, to drive healthcare innovations.

The partnership, announced on Feb. 12, with the American firm aims to advance BCI therapies focused on restoring neurological function for individuals with impairments.

As part of the agreement, NEOM will establish a Brain-Computer Interface Center of Excellence. This center will lead groundbreaking clinical research and become a leading hub for BCI-based healthcare in the MENA region and beyond.

This investment aligns with Saudi Arabia’s Health Sector Transformation Program, launched in 2021, which seeks to create a more efficient, integrated healthcare system.

The program prioritizes innovation, financial sustainability, disease prevention, and broader access to healthcare services. It also focuses on expanding e-health services and digital solutions to improve care quality and meet international standards.

Led by the NEOM Investment Fund, the partnership will accelerate the development of high-data rate BCI technology, aimed at enhancing movement, communication, and cognitive functions for individuals affected by neurological conditions.

Matt Angle, founder and CEO of Paradromics said that the collaboration marks a pivotal moment for Paradromics and the broader BCI industry.

“NEOM and Paradromics both have expansive visions for the future of mental health that are highly aligned. Working together, we can accelerate the rate of innovation in BCI and expand access to impactful BCI-based therapies,” Angle said.

Majid Mufti, CEO of NEOM Investment Fund, said that they “at NIF are committed to enabling NEOM’s bold vision of redefining the future of healthcare by investing in transformative technologies that push boundaries and address humanity’s toughest challenges.”

“Paradromics was selected as a strategic partner for their groundbreaking advancements in BCIs and our shared mission of shaping industries, solving critical challenges and driving meaningful impact.” Mufti added.

Mahmoud Al-Yamany, head of NEOM’s health and well-being sector, stated that the partnership with Paradromics marks a significant advancement in addressing the critical needs of individuals with motor paralysis, speech impairments, and other debilitating conditions.


Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030
Updated 13 February 2025
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Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

Saudi low-cost carrier flynas to take delivery of over 100 Airbus planes by 2030

JEDDAH: Saudi low-cost carrier flynas expects to receive more than 100 Airbus aircraft over the next five years, part of its broader deal for 280 Airbus jets, as it expands its fleet to meet growth targets. 

The announcement coincided with a visit from Airbus senior management to flynas’ headquarters in Riyadh. 

The airline aims to operate over 160 aircraft by 2030, with its 280-plane order — worth more than SR161 billion ($43 billion) — making it the largest holder of single-aisle aircraft purchase orders in the Middle East. 

This comes amid a growing backlog of aircraft orders in the aviation industry, with manufacturers like Boeing reducing delivery schedules for 2025, impacting Gulf carriers that have had to delay their launches.

Dubai-based Emirates has been hit hard as Boeing’s 777X faces major delays, with deliveries now expected no sooner than 2027. 

“We value the visit of the Airbus senior management, which reflects the position of flynas as a leading Saudi carrier at the global level and also reflects the importance of our long-term partnership that has strengthened the contribution of flynas to achieving national goals in the aviation industry,” said Bander Al-Muhanna, CEO and managing director of flynas. 

He noted that flynas’ partnership with Airbus began at its inception and strengthened in 2016 with an order for 120 aircraft. The collaboration reached a new level in 2024 with an agreement to purchase 160 Airbus A320 and A330 wide-body jets. 

The expansion aligns with Saudi Arabia’s National Civil Aviation Strategy, which aims to connect the Kingdom with 250 international destinations, accommodate 330 million passengers annually, and attract 150 million tourists by 2030. 

The initiative also supports the Pilgrims Experience Program, designed to facilitate access to the Two Holy Mosques, the company said in a press release. 

The Airbus delegation’s visit also marked flynas receiving a new Airbus A320neo last week — the first delivery of the year — bringing its fleet of the models to 54 aircraft. 

During their visit, Airbus executives toured flynas’ headquarters and reviewed the airline’s latest aviation innovations. They also met with senior officials from the Saudi airline to discuss ways to strengthen their long-term partnership. 

Saudi Arabia has been pushing to expand its aviation sector under Vision 2030, with national carriers ramping up fleet expansions to meet the Kingdom’s growing travel and tourism targets. 


Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement

Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement
Updated 13 February 2025
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Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement

Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement
  • Facility will allow HBL MfB to share 50 percent of risk on microfinance loan portfolio of up to $80 million with IFC on an unfunded basis
  • Collaboration aims to enhance access to finance for smallholder farmers, microenterprises across the country, with focus on women

KARACHI: HBL Microfinance Bank (HBL MfB) has signed a Risk Sharing Agreement (RSA) with the International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets.
The facility, which is supported by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), will allow HBL MfB to share 50 percent of the risk on its microfinance loan portfolio of up to $80 million with IFC on an unfunded basis. The collaboration aims to enhance access to finance for smallholder farmers and microenterprises across the country, with a strong focus on women entrepreneurs.
“This RSA is another milestone, reinforcing the Bank’s legacy of innovation and leadership in addressing the evolving financial needs of underserved communities,” HBL said in a statement. 
“By being the first microfinance bank to establish an agreement on such a scale, HBL MfB is not only pushing boundaries but also redefining industry standards, ensuring that microfinance remains a catalyst for empowerment and economic growth.”
HBL said the RSA exemplified the bank’s approach toward leveraging strategic partnerships to strengthen financial resilience, expand lending capabilities, and maintain sustainable growth.
“This partnership with IFC is a testament to our commitment to financial inclusion. The facility serves as a replicable model for strategic partnerships that mitigate market challenges while driving sustainable development,” Amir Khan, President and CEO HBL Microfinance Bank, said in a statement.
“By pioneering this Risk Sharing Facility in the microfinance sector, we are ensuring that underserved segments of the society — especially small business owners and farmers, particularly women, have access to the capital they need to thrive. We are thankful to IFC for their trust in us and look forward to the growth and progress it will bring for underserved Pakistanis.”
Momina Aijazuddin, Regional Head of Financial Institutions Group at IFC, said boosting access to finance, especially for smallholder farmers, small businesses and women, could be a “gamechanger” in Pakistan. 
“With this in mind, IFC is excited to support this pioneering risk sharing facility which aims to de-risk HBL MfB’s on-lending activity to its microfinance clients and support critical growth opportunities in agriculture, entrepreneurship, and women’s empowerment,” Aijazuddin said. 
“This agreement will accelerate financial inclusion, and further HBL Microfinance Bank’s mission of creating a more inclusive and resilient financial ecosystem in Pakistan.”
Despite challenging macroeconomic conditions, microfinance banks (MFBs) have continued to expand their outreach to the low-income population of Pakistan. Although MFBs account for only 1.3 percent of total financial sector assets, they have a broad customer base. Over the past five years, MFBs’ total assets grew by an average of 19.1 percent annually, according to government data.