Closing Bell: Saudi main market gains to close at 12,105 points

RIYADH: UK-based professional services firm Deloitte is scaling up its investment in Saudi Arabia, reinforcing its long-standing national presence with new initiatives.

In an interview with Arab News on the sidelines of the LEAP 2025 Tech Conference in Riyadh, Patrycja Oselkowska, growth leader at Deloitte Middle East, highlighted the firm’s goal to double its growth in the Kingdom over the next three years. Revenue expansion and strategic partnerships with key clients will primarily drive this development.

“Our future is firmly in Saudi now,” Oselkowska said, adding: “Our presence in the Kingdom dates over 100 years, and we see our future in the Kingdom. We’ve recently launched our new headquarters in the King Abdullah Financial District, and we are very proud of it.”

Rather than pursuing broad-based market expansion, the firm aims to serve as a trusted adviser on its clients’ most complex challenges. “The way we differentiate in the market is by providing very in-depth industry expertise,” Oselkowska said.

Deloitte is serving as the official Innovation & Emerging Technology Partner at LEAP 2025 for the third consecutive year. The firm’s presence at the event includes interactive booths featuring discussions on generative artificial intelligence, sustainability, and cybersecurity, as well as cloud alliances and digital transformation.

Digital transformation remains the prevailing trend in the Middle East’s business landscape. According to Oselkowska, companies across sectors are accelerating their digitization efforts, with GenAI emerging as a game-changer. 

Deloitte recently published its “State of AI” report, which surveyed 150 C-suite executives from corporations across the Middle East. The findings indicated that over 80 percent of organizations feel the pressure to adopt AI, but nearly half struggle with a shortage of talent and technological capabilities necessary for successful scaling. 

She added: “Many corporates are worried that gen AI is going to completely revolutionize how they do business.”

The top official emphasized that Deloitte is proactively embracing this shift, positioning itself to disrupt its own business model before being challenged by others.

“We launched a new GenAI tool that is called Tax Genie, where we are basically trying to implement GenAI to provide services in the tax space. It is both for our people as well as for our clients.”

Oselkowska also addressed the future of digital banking in the Kingdom, distinguishing between traditional banks that offer digital services and fully digital banks that operate exclusively through mobile applications. 

While the Kingdom has yet to introduce fully digital banks, the regulatory framework is evolving, with the Saudi Central Bank overseeing licensing processes for potential entrants.

For this medium to thrive, it needs to offer a seamless customer experience and a compelling value proposition that incentivizes clients to switch from traditional banks, she said.

Cybersecurity remains a critical challenge, as digital banking platforms must ensure robust security measures to maintain high consumer confidence levels.

Deloitte’s recent research on Trust ID highlighted that credibility in financial services is exceptionally high among Gen Z consumers in Saudi Arabia. “Digital banks need to maintain that really high level of trust by being extremely secure,” Oselkowska added.

In an announcement at LEAP 2025, Deloitte introduced its Silicon-2-Service offering, an initiative designed to accelerate AI adoption across the Middle East. 

According to a press release, the S2S framework provides end-to-end support for businesses seeking to implement sovereign AI capabilities, covering strategy, design, deployment, and optimization.

Deloitte Middle East AI and Data Leader Yousef Barkawie said: “AI is transforming business landscapes globally and presenting our Middle East region with unprecedented opportunities to innovate and scale.”

He added: “With the rollout of our Silicon-2-Service offering in the region, we are enabling adoption and providing access to cutting-edge innovation at a large scale. We support clients across the public and private sectors through their entire AI journey.”

The press release said: “This collaboration enables Deloitte’s clients to accomplish faster time to value of their large-scale AI investments while embracing the freedom to innovate and adapt to evolving market demands.”

“The launch of S2S aligns with Deloitte’s broader commitment to supporting the Middle East’s digital economy by fostering an ecosystem where AI bridges innovation with tangible, positive outcomes, in compliance with the prevailing regulations unique to each country,” it added.

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.