Saudi Arabia 4IR strategy targets AI, Internet of things, heavy drones, WEF leader says

The SKYF heavy lift drone from Russian company ARDN technology can carry a 400lb payload for eight hours. (Supplied)
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Updated 08 August 2021
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Saudi Arabia 4IR strategy targets AI, Internet of things, heavy drones, WEF leader says

  • Saudi Arabia could become a global center for new drone technology
  • Heavy lift drone technology had been prioritized by the Kingdom as one of its 4IR projects

RIYADH/DUBAI: A World Economic Forum (WEF) Committee leader announced the intention to finalize and launch projects across six different thematic areas in Saudi Arabia under the Kingdom’s fourth industrial revolution (4IR) strategy, including heavy lift drones, artificial intelligence, the Internet of things, and SMEs.

“The heavy lift drones is a collaboration with a dialogue with the ministry of transport and logistics services and then of course the general authority of civil aviation,” Sheila Warren, deputy head of the Center for the Fourth Industrial Revolution (C4IR) committee of WEF, told Arab News.

Saudi Arabia could become a global center for new drone technology under plans being advanced by the Center for the Fourth Industrial Revolution (4IR) recently inaugurated in Riyadh in partnership with the WEF.

Warren highlighted the experience of Rwanda, which has become a world leader in drone use, experimentation and regulation.

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Saudi Arabia is learning from Rwanda’s experiences in thinking through how to develop a regulatory framework, which informs the work of the center in Saudi Arabia with the Saudi Ministry of Transport and the General Authority of Civil Aviation (GACA), she said.

Heavy lift drone technology had been prioritized by the Kingdom as one of its 4IR projects, Mansour Alsaleh, director of the center, told Arab News. “Saudi Arabia can be a leading country in developing the regulatory framework for heavy-lift drones. It can be ahead of the world.”

Heavy lift drone technology has advanced to a stage where it requires a more sophisticated regulatory framework, he said, not just in the Kingdom but globally, and these are being developed in partnership with the Saudi General Authority of Civil Aviation, the Ministry of Transport and Saudi Aramco. “The applications are endless,” Alsaleh said.

Everything started with Vision 2030.

Sheila Warren, deputy head of the Center for the Fourth Industrial Revolution

Heavy lift drones could facilitate the opening up of parts of the Lingdom to housing and development in a way that “you couldn’t really do without that particular engagement,” Warren said.

In a sign of Saudi intention to improve its digital economy, the WEF leader told Arab News that few “fellows” from Aramco visited the C4IR San Francisco office on the blockchain team, on the AI team, and IOT.

The Aramco team is back in the Kingdom bringing all the learning achieved from C4IR teams, not only to Aramco but also to the Saudi center, she said.

Everything started with Vision 2030, Warren said.

“The vision itself talks about backlog with roads and the transport infrastructure, and the idea being that we want people to be able to live healthy, happy, productive lives across the entire Kingdom, which can be challenging with infrastructure,” she said.


Saudi financial wealth reaches $1.25tn as asset mix shifts, BCG says

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Saudi financial wealth reaches $1.25tn as asset mix shifts, BCG says

RIYADH: Saudi Arabia’s financial wealth rose to $1.25 trillion in 2024, up 4.4 percent from a year earlier, underscoring steady balance-sheet expansion as the Kingdom’s investor base becomes more diversified, a new analysis showed. 

Financial assets increased from $1.2 trillion in 2023, while total net wealth climbed to a record $3.7 trillion by the end of 2024, Boston Consulting Group said in its latest Global Wealth Report. 

The analysis added that real assets represent the largest component of Saudi Arabia’s overall wealth and are expected to reach $2.94 trillion by 2029, marking a compound annual growth rate of 1.3 percent. 

Earlier this month, the World Bank underscored Saudi Arabia’s financial resilience and upgraded its 2025 economic growth forecast for the Kingdom to 3.8 percent from an earlier estimate of 3.2 percent, citing renewed momentum in both oil and non-oil sectors.

In October, the International Monetary Fund also raised its economic growth forecast for the Kingdom to 4 percent for both 2025 and 2026.

Bhavya Kumar, managing director and partner at BCG, said: “Saudi Arabia’s wealth ecosystem is at an inflection point. With financial wealth reaching $1.25 trillion and real assets maintaining stability at $2.76 trillion, we’re witnessing the maturation of a sophisticated investor base.” 

BCG also said Saudi Arabia’s liabilities increased by 6.8 percent to $307 billion in 2024, helping to keep the Kingdom’s overall wealth growth balanced. 

The Kingdom’s investable wealth is projected to grow from $1.04 trillion in 2024 to $1.31 trillion by 2029, representing a compound annual growth rate of 4.7 percent. 

By contrast, non-investable wealth is expected to expand at a robust 5.3 percent CAGR, reflecting continued economic development and infrastructure investment. 

According to the report, equities and currency and deposits were the dominant asset classes in 2024, valued at $339 billion and $300 billion, respectively. 

BCG said equities are expected to grow to $398 billion by 2029, while currency and deposits are projected to reach $414 billion. 

Bonds, though relatively small at $9 billion in 2024, are expected to rise to $13 billion by 2029, representing a CAGR of 7.2 percent. 

Life insurance and pensions were valued at $99 billion in 2024 and are projected to reach $140 billion by 2029.

“The 6.6 percent projected growth in currency and deposits signals increasing liquidity preferences, while the underdeveloped life insurance and pensions sector — growing at 7.1 percent annually — represents a massive opportunity for financial services providers who can adapt their offerings to meet the evolving needs of Saudi investors,” said Kumar. 

The report noted that while wealth continues to grow steadily in Saudi Arabia, the drivers of that expansion are shifting, with significant implications for firms operating in the sector. 

BCG said many firms have traditionally leaned on market performance, mergers and acquisitions, and adviser hiring.

“Saudi Arabia’s wealth management landscape is experiencing unprecedented transformation. The key to success today is no longer merely about gaining market exposure or hiring senior bankers; it’s about fostering internal growth,” said Lukasz Rey, managing director and partner at BCG.

Rey added: “Companies that strategically prioritize adviser development, strengthen their brand identity, and embrace next-generation client strategies are outpacing their competitors — not only in revenue generation but also in achieving higher valuation multiples.”