Bahrain plans multimillion-dollar data hub to boost digital transformation of Arab world

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Updated 08 September 2021
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Bahrain plans multimillion-dollar data hub to boost digital transformation of Arab world

  • A new multimillion-dollar regional data center is set to be built in the Kingdom of Bahrain
  • The initiative’s main hub in Bahrain will serve all member states of the Arab League

A new multimillion-dollar regional data center is set to be built in Bahrain to promote collective digital transformation across the Arab world.

The hub’s aim will be to help evolving local economies and enrich the lives of common people in the Arab world. The Arab League’s Arab Federation for Digital Economy (AFDE) entered into a memorandum of understanding with ATDXT LLC, a digital transformation company, headquartered in the UAE on Sept. 1.

The launch of the first- of-its-kind collaboration, will enable the new data center to focus on localized data protection, enhanced security, and rendering digital transformation solutions. 

The initiative’s main hub in Bahrain will serve all member states of the Arab League. All member countries partaking in the initiative can leverage these solutions hosted in Bahrain, which is a key driver behind the Gulf’s overall digital economy transformation efforts. These solutions will be focused on supporting both government and private sector entities in Arab League member states, with the aim of improving the competitiveness of Arab economies and fostering their integration into the global economy.

The data center will aim to be eco-friendly and to host advanced technologies and digital transformation solutions, servicing Arab League states. These solutions will be extended to also be hosted locally in Arab league member nations such as the UAE, Oman, Saudi Arabia, Morocco, Kuwait, and Jordan in the first phase with other states to follow soon after.

The technology solutions will cover e-government services, e-commerce services, e-health solutions, secure digital tokens and fintech solutions, transportation solutions, digital identity solutions, telecommunication transformation systems, governance, crime management and cyber security systems, e-agriculture platforms, solar and renewable energy, and other business solutions.

GS Murthy, founder & executive chairman, ATDXT Group, said: “We are delighted to partner with the Arab League and incubate the first of its many multi-million-dollar regional hubs, in Bahrain. The focus of this initiative will remain to be on digital transformation enablement, that will improve competitiveness of the Arab nations, and foster their integration into the global economy. We are confident that our best-in-class skill development initiative, focused on cutting edge technologies, will create immense job opportunities and future technology leaders across the Arab nations.”

Bahrain’s Foreign Minister Abdullatif bin Rashid Al-Zayani said: “I appreciate the ATDXT Group for choosing the Kingdom of Bahrain to be the digital transformation solutions hub, reflecting the excellence of the investment environment in Bahrain and the many facilities they provide to investors. This partnership will enable us to contribute to the transformation of the digital outlook of the countries of the Middle-East and to continue to provide leading services to our citizens, residents and region as a whole.”

 Ambassador Hossam Zaki, assistant secretary-general of the Arab League, said: “The League of Arab States along with the Arab Union is actively promoting the joint Arab strategic vision for the digital economy. I’m confident that this partnership will contribute to strengthening Arab cooperation in the digital world.” 


Two Saudi cybersecurity firms plan Tadawul listings within two years 

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Two Saudi cybersecurity firms plan Tadawul listings within two years 

RIYADH: Two Saudi cybersecurity companies, Cyber and Infratech, plan to list a portion of their shares on the Saudi Stock Exchange, or Tadawul, between 2026 and 2027, according to the companies’ chairmen, who spoke to Al-Eqtisadiah. 

Abdulrahman Al-Kenani, founder and CEO of Cyber, said: “The company is currently planning to acquire certain entities, which will be disclosed in the coming period, in addition to preparing for a public offering through the Tumooh program on the stock market within the next two years at the latest.” 

Al-Kenani explained that the financial, healthcare and services sectors are witnessing continuous cyberattacks as Saudi Arabia expands its digital transformation, accompanied by a rise in the frequency of such incidents. He added that this phenomenon is not limited to the Kingdom but is a global issue. 

The CEO added: “The company is working with several Saudi airports and vital sectors, in addition to collaborating with major international companies to provide cutting-edge cybersecurity solutions.” 

Infratech plans 4 R&D centers abroad 

Ayman Al-Suhaim, CEO of Infratech, stated: “The size of the information technology and cybersecurity market in Saudi Arabia has reached approximately SR87 billion ($23.2 billion), of which SR15.7 billion are allocated to the cybersecurity sector. This includes consulting, managed services, governance, risk management, and cybersecurity within the industrial sector.” 

He said the company has a strategic plan covering the period from 2026 to 2028, which includes establishing a firm in the first quarter of next year to finance cybersecurity and artificial intelligence products, as well as launching four research and development centers in the US, Russia, China and Eastern Europe. 

The plan also includes investment in cloud storage, overseas ventures, and the expansion of operations and investments in data centers. 

Al-Suhaim said the company intends to go public in 2027, noting that it operates across multiple cybersecurity domains serving sectors including energy, defense, aviation and government services. 

The Tumooh program for small and medium-sized enterprises in Saudi Arabia is one of the support initiatives offered by the General Authority for Small and Medium Enterprises, or Monsha’at. It aims to drive SME growth by strengthening capabilities, improving performance and accelerating expansion. 

The initiative seeks to help fast-growing SMEs prepare for initial public offerings in the financial markets. To date, the program has facilitated the listing of 24 companies on the Nomu Parallel Market out of more than 2,500 firms registered under the scheme.