Saudi first budget surplus in eight years presents an opportunity for stock market growth

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Updated 13 December 2021
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Saudi first budget surplus in eight years presents an opportunity for stock market growth

  • Tadawul’s main and parallel indexes, TASI and Nomu, closed the pre-budget session in green territory

RIYADH: After eight years of budget deficits, Saudi Arabia reported a SR90 billion ($24 billion) projected surplus for 2022, estimating a 7.4 percent gross domestic product growth according to a Cabinet statement — an opportunity that sets the stage for stock market improvement.

“The current budget shows strong macro indicators that will enhance the confidence in economic growth and continuous reforms that are necessary to make the stock market more attractive to all investors to maintain positions,” Mazen Alsudairi, head of research at Al Rajhi Capital told Arab News.

"The economy growth next year is supported with 4 percent growth in non-oil activities and that's also another driver for strong stock market performance, in addition to an expected increase in liquidity," he added.  

The Kingdom’s budget picture for next year could have a big impact on investor sentiment amid uncertainty, potentially leading to a rally momentum for the Saudi bourse.

Tadawul’s main and parallel indexes, TASI and Nomu, extended their gains in the post-budget trading session, up 0.74 percent and 1.08 percent respectively in midday trading.

Elevated investor appetite led to stronger bourse performance in the Kingdom, outperforming other Mideast stocks. The UAE’s main index DFM was up slightly by 0.25 percent, Abu Dhabi’s index ADX lost 0.23 percent, and the Qatari index QSI went down by 0.07 percent.

Actual 2021 budget figures could also drive a healthier stock market. The stock market saw a recovery this year with many companies turning into profit after a slump in revenues and profitability in 2020.

Some 26 enlisted companies in the Saudi stock exchange rebounded from a nine-month 2020 net loss to profit this year. With improved companies’ performance, TASI soared 26.89 percent and Nomu rose 18.48 percent in the one-year period ending Dec.13.

For the current fiscal year, the Kingdom’s economy narrowed the budget deficit to SR85 billion from the initial estimate of SR145 billion made last year, thanks to the recovery of markets wounded by the wave of diminished economic growth and wrecked supply chains caused by the coronavirus pandemic.

Revenues are set to stand at SR930 billion in 2021, in contrast to the estimated revenues of SR846 billion projected last year. The revenue boost was attributed to gains in Saudi’s non-oil sector which saw a revenue increase from SR332 billion in 2019 to SR372 billion in 2021, which likewise bodes well for non-oil stocks in the coming period.

The overall positive performance indicated an uptrend in the economy and potentially better financial results in the near term, hence improving investors’ level of confidence in the market.


Saudi Arabia sets global benchmark in AI modernization

Updated 15 January 2026
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Saudi Arabia sets global benchmark in AI modernization

  • Executives hail the Kingdom’s robust infrastructure and strategic workforce programs

RIYADH: Saudi Arabia is emerging as a global leader in artificial intelligence, according to executives from OpenText, one of the world’s largest enterprise information management companies. 

With 22 years of international AI experience, Harald Adams, OpenText’s senior vice president of sales for international markets, said the Kingdom’s modernization efforts are now setting a global standard.

“From my perspective, Saudi Arabia is not only leading the modernization towards artificial intelligence in the Middle East, I think it is even not leading it only in the MENA region. I think it is leading it globally,” Adams told Arab News.

In an interview, Adams and George Schembri, vice president and general manager for the Middle East at OpenText, discussed the Kingdom’s significant investments in AI during the inauguration of OpenText’s new regional headquarters in Riyadh.

“So for us (OpenText), from our perspective, it was a strategic decision to move our MENA headquarters to Saudi Arabia because we believe that we will see here a lot of innovation coming out of the country, we can replicate not only to the MENA region, maybe even further to the global level,” Adams said.

The new headquarters, located in the King Abdullah Financial District, will serve as a central hub for OpenText customers and partners across the Middle East. Its opening reflects a broader trend of tech giants relocating to Riyadh, signaling the Kingdom’s rise as a hub for global AI innovation.

Adams attributed Saudi Arabia’s lead in AI modernization to a combination of substantial financial backing, a unified national strategy, and a remarkable pace of execution.

“I mean, a couple of things, because the ingredients in Saudi Arabia are of course, quite interesting. On the one hand side, Saudi Arabia has deep pockets and great ambitions. And they are, I mean, and they are executing fast, yeah,” he said.
“So from that perspective, at the moment, what we see is that there are, especially on the government side, I can’t see any other government organizations globally moving faster into that direction than it is happening in Saudi Arabia. Not in the region, not even on a global level, they are leading the game,” he underlined.

Schembri added, “Saudi’s AI vision is one of the most ambitious in the world, and AI on a national scale is not good without trusted, secured, and governed, and this is where OpenText helps to enable the Saudi organizations to be able to deliver on the 2030 Vision.”

“The Kingdom’s focus on AI and digital transformation creates a powerful opportunity for organizations to unlock value from their information,” Schembri stated.
“With OpenText on the ground in Riyadh, our customers gain direct access to trusted global expertise combined with local insight — enabling them to manage information securely, scale AI with confidence, and compete on a global stage,” he added.

DID YOU KNOW?

• Saudi Arabia ranks 5th globally and 1st in the region for AI growth under the 2025 Global AI Index.

• The Kingdom is also 3rd globally in advanced AI model development, trailing only the US and China.

• AI is projected to contribute $235.2 billion — or 12.4 percent — to Saudi Arabia’s GDP by 2030.

The inauguration of OpenText’s new regional headquarters was attended by Canada’s Minister of International Trade and Economic Development, Maninder Sidhu, and Jean-Philippe Linteau, Canada’s ambassador to Saudi Arabia. 

Sidhu emphasized the alignment of Saudi Vision 2030 with Canada’s economic and innovation goals.

“His Highness (Crown Prince Mohammed bin Salman) and Vision 2030, there is a lot of alignment with Canada, as you know, with the economic collaboration, with his vision around mining, around education, tourism, healthcare, you look at AI and tech, there’s a lot of alignment here at OpenText Grand opening their regional headquarters,” Sidhu told Arab News.

Saudi Arabia’s AI ambitions are projected to contribute $235.2 billion — or 12.4 percent — to its GDP by 2030, according to PwC. The Saudi Data and AI Authority, established by a royal decree in 2019, drives the Kingdom’s national data and AI strategy.

One flagship initiative, Humain, chaired by Crown Prince Mohammed bin Salman, was launched in May 2025 under the Public Investment Fund. It aims to build a full AI stack — from data centers and cloud infrastructure to models and applications — positioning Saudi Arabia as a globally competitive AI hub. The project plans to establish a data center capacity of 1.8 GW by 2030 and 100 GW of AI compute capacity by 2026.

Saudi Arabia is also expanding international partnerships. In May 2025, Humain signed a $5 billion agreement with Amazon Web Services to accelerate AI adoption domestically and globally, focusing on infrastructure, services, and talent development.

The Kingdom ranked fifth globally and first in the Arab region for AI sector growth under the 2025 Global AI Index, and third worldwide in advanced AI model development, behind only the US and China, according to the Stanford University AI Index 2025.

Education is another pillar of Saudi AI strategy. Starting in the 2025-26 academic year, AI will be taught as a core subject across all public school grades, reaching roughly 6.7 million students. The curriculum will cover algorithmic thinking, data literacy, and AI ethics.

OpenText executives emphasized their commitment to supporting Vision 2030 and the national AI strategy through workforce development.

“OpenText has put a lot of investment in the Kingdom, right. We brought cloud to the Kingdom, we’ve opened our headquarters in the Kingdom, we’ve basically hiring Saudis in the Kingdom, We basically building, if you like, an ecosystem to support the Kingdom. And on top of that, what we’re doing is we’re putting a plan together, if you like, a program to look at how we can educate, if you like, the students at universities,” Schembri said.
“So this is something that we are looking into, we are basically investigating and to see how we can support the Saudi nationals when they come into the workplace. And I’m really excited. I have Harry who is, our leadership who’s supporting this program.”
“It’s something that we are putting together. It’ll take some effort. So it’s still in play because we want to make sure what we put it basically delivers on what we're trying to achieve based on the vision of Saudi,” he added.

“The younger generation is sooner or later either working for us or maybe for a partner or for maybe for a customer. So that’s why we are to 100 percent committed to enable all of that,” Adams said.