Red Sea Global’s CEO doesn’t rule out an IPO as it rebrands for expansion

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Updated 26 October 2022
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Red Sea Global’s CEO doesn’t rule out an IPO as it rebrands for expansion

RIYADH: The CEO of Saudi Arabia’s most ambitious tourism project doesn’t rule out an initial public offering for the giga project, as it gears up for expansion under a global new brand.

Speaking to Arab News at the 6th edition of the Future Investment Initiative Forum in Riyadh on Oct. 25, John Pagano didn't say when his company — formally known as The Red Sea Development Co. — will list publicly, while indicating that this is more of a future option to secure any additional funding.  

The Red Sea project, which is part of Saudi Arabia’s Vision 2030 program, will start to become reality next year when the Kingdom’s newest tourist destination opens its first three resorts by late spring, according to the CEO.

The project is ready to welcome “people from around the world.”

The resorts set to open are St. Regis and the Ritz Carlton Reserve and Six Senses.

“It's the first step in the realization of Vision 2030. We have a lot of work to do," Pagano said.

RSG's CEO revealed they will open the airport to serve the first opening of the hotels, with a seaplane terminal that will be operational to welcome the guests. 

“We have another 13 resorts that are under development right now that will open a year later. So in 2024, we will complete the first phase of Red Sea, which is a total of 16 hotels,” said Pagano, adding: “We've announced the brands over time. We have 12 hotel management agreements in place; a couple of the hotels, we're going to brand ourselves and build the Red Sea hospitality brand around that.”

Regarding Amaala, Pagano highlighted the luxury development has eight resorts under construction that will also be completed at the end of 2024. 

“The opening next year is a hugely important milestone. But the real focus continues to be completing the first phase of both Red Sea and Amaala to really open and launch the destination on a really, truly global scale,” he said.

RSG announced its new name on the sidelines of the first day of FII. The rebranding is part of its global vision to lead the narrative transition toward regenerative development.

“I think it's appropriate that we change our name to reflect our global ambitions, our ambition to really change the way we do things, not just here in Saudi Arabia, but would actually lead the world in that transformation,” John Pagano told Arab News.

“I think that is the real essence behind why we're doing it. We're a company that wants to do better for people and for the planet. And Red Sea Global is the right positioning and branding for our new global ambitions,” he added.

“I'm thinking about next year, but I got the rest of this year to concern myself with a huge amount of effort going into preparing the destination to welcome our first guests from getting our mobility strategy working,” Pagano said.

“I mean, actually realizing the mobility strategy, commissioning our electric vehicles, we have hydrogen-powered boats that are under production. Now, our seaplane businesses are coming — all of this is coming together so that when we open our doors in late spring, next year. We're going to be fully ready to open our arms and welcome people from around the world,” he added.


From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

Updated 53 min 25 sec ago
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From barrels to bytes: How AI is powering Saudi Arabia’s industrial transformation

  • Inside the Kingdom’s drive to merge energy expertise with digital intelligence

RIYADH: Artificial intelligence is moving beyond concept to become a cornerstone of Saudi Arabia’s energy sector, reshaping how oil, gas, and power systems are managed and optimized.

Industry giants like Saudi Aramco are embedding smart systems into their operations to boost efficiency, reliability, and sustainability—key pillars in the Kingdom’s efforts to modernize its industrial base and diversify its economy.

According to the International Energy Agency, oil and gas companies were among the first to adopt digital technologies. The agency estimates that applying AI to power plant operations and maintenance could save up to $110 billion annually by 2035 through reduced fuel consumption and maintenance costs.

For Saudi Arabia, this technological momentum offers both a blueprint and an opportunity. Under Vision 2030, integrating data and intelligent automation is transforming how energy is explored, refined, and delivered.

At the heart of Saudi Aramco’s operations is a digital transformation strategy centered on artificial intelligence, big data, and the industrial Internet of Things. These technologies are applied at every stage of production—from mapping reservoirs and optimizing drilling to improving efficiency and safety.

AI also underpins Aramco’s Digital Transformation Program, which develops in-house smart tools and data-driven platforms designed to cut emissions, reduce costs, and enhance performance while ensuring a reliable energy supply.

A prime example is the Upstream Innovation Center, where engineers have implemented AI solutions that reduce fuel gas use in boilers, improve efficiency, and detect potential leaks through fiber-optic monitoring. At the Khurais oil field, more than 40,000 sensors monitor approximately 500 wells via an Advanced Process Control system—the first of its kind for a conventional oil field at Aramco. Digitization at Khurais has increased production by around 15 percent, doubled troubleshooting speed, and lowered both costs and environmental impact.

These advances illustrate how Aramco’s network is evolving into a connected, adaptive model, blending traditional engineering expertise with digital intelligence.

DID YOU KNOW?

• AI could save up to $110 billion a year in global power plant fuel and maintenance costs by 2035.

• Advanced Process Control enables real-time monitoring of hundreds of oil wells in the Kingdom.

• AI-powered simulations now replace weeks of manual analysis, enabling faster operational decisions.

As Saudi Arabia develops an AI-driven energy economy, the King Abdullah University of Science and Technology is bridging the gap between digital innovation and industrial application. 

Bernard Ghanem, chair of the Center of Excellence for Generative AI, said the university is working with Saudi Aramco to develop AI systems that predict the chemical properties of materials and accelerate research into direct air capture technologies for carbon dioxide removal.

He told Arab News that KAUST is partnering with SABIC and ACWA Power to apply AI in process optimization and materials discovery, turning lab-scale research into practical solutions for the energy sector.

Ghanem said KAUST’s generative AI materials program combines a robotic chemistry lab with its AI Chemist foundation model, a system that accelerates the development of catalysts, battery materials, and membranes for clean energy applications.

“This is our lab of the future, automating experimentation and speeding up energy innovation,” he said.

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Mani Sarathy, professor of chemical engineering at KAUST, noted that AI-based reinforcement learning tools are already improving efficiency in hydrocarbon refineries by enhancing simulations and shortening analysis cycles.

“AI is helping energy companies run complex simulations that once took weeks, enabling faster and more precise operational decisions,” he told Arab News.

Sarathy added that the next phase will combine automation with expert oversight. Hybrid human-AI control systems, he explained, are likely to become standard in critical operations, balancing digital autonomy with safety and reliability as Saudi industries expand AI deployment.

These efforts highlight KAUST’s growing role in transforming AI from an academic discipline into a driver of industrial innovation in Saudi Arabia’s energy sector under Vision 2030.

Meanwhile, Skeleton Technologies is bringing AI-driven energy storage solutions to Saudi partners, solutions that are already reshaping industrial systems across Europe and beyond. In Europe, the company combines artificial intelligence and advanced materials to reduce energy use and improve efficiency in data centers, electricity grids, and defense systems.

“Our solutions allow AI infrastructure to consume less electricity and reduce grid connection needs, making AI operations more energy efficient,” Arnaud Castaignet, vice president of government affairs and strategic partnerships at Skeleton, told Arab News.

Inside its factories, Skeleton uses AI-driven digital twin models, created with Siemens Digital Industries, to simulate production, optimize operations, and enable predictive maintenance, Castaignet said. At the core of its technology is curved graphene, a proprietary carbon material that gives Skeleton’s supercapacitors exceptional conductivity.

“It allows our supercapacitors to charge and discharge within microseconds, around 12 microseconds, something batteries cannot do,” Castaignet said.

The company’s flagship Graphene GPU system, built on these supercapacitors, cuts energy use in AI data centers by up to 40 percent and reduces grid requirements by 45 percent while boosting computing performance. The devices are free of lithium, nickel, and cobalt, relying instead on graphene derived from silicon carbide—essentially sand—processed entirely in Germany.

“To build sustainable AI infrastructure, you need energy-saving hardware as well as renewable power,” Castaignet added. “Our Graphene GPU shows both can work together.”

As Saudi Arabia continues linking engineering expertise with digital intelligence, its industrial progress is measured not only in barrels of oil but also in bytes, data, and the smart systems shaping its energy future.