Evolving regulatory framework attracting regional and global issuers to Saudi capital market    

Speaking at a panel during the Saudi Capital Market Forum in Riyadh on Feb.13, Zaid Ghoul, head of investment banking at SNB Capital, noted that the Kingdom’s parallel market Nomu is also growing steadily. (Supplied)
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Updated 13 February 2023
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Evolving regulatory framework attracting regional and global issuers to Saudi capital market    

RIYADH: The size of Saudi Arabia’s stock exchange, its liquidity and the continuous change in the regulatory framework are some of the key factors making the Kingdom’s market attractive to regional and international issuers, noted a top Saudi banker.   

Speaking at a panel during the Saudi Capital Market Forum in Riyadh on Feb.13, Zaid Ghoul, head of investment banking at SNB Capital, noted that the Kingdom’s parallel market Nomu is also growing steadily.  

“The interesting thing to look at Nomu, which is the parallel market, is that it attracted 19 listings in 2022 compared to only three in 2021. So, this area of the capital market is really growing,” he added.   

During the discussion titled “Public equity over-burn: where can the additional bandwidth come from?” Finlay Wright, managing director at Rothschild & Co., said there had been various high-quality initial public offerings that have come to Saudi Arabia and provided exposure to investors to explore new sectors, which previously they have been unable to do.  

“On the back of that, certain select companies that meet the criteria for dual listing are actively exploring the possibilities, and it is really exciting for the Saudi market,” he added.   

Wright pointed out that the increase in the number of IPOs in the Middle East, especially in Saudi Arabia, is happening due to very strong macro conditions combined with a strong oil price, adequately supported by structural and regulatory changes that have taken place.  

Top experts who attended a panel discussion suggested that an active follow-up after IPOs is necessary to improve the capital market in the Kingdom further.   

“There is clearly more to do around supporting an active following on market beyond the IPO. Like, as what happens after the IPO, whether companies can use the listings to access primary capital, and whether vendors can sell down secondary capital in an efficient form. That is the next leg,” said Martin Thorneycroft, managing director, and head of Cash Equity Capital Markets, EMEA at Morgan Stanley.

Wright noted that private equity owners who enter the Kingdom’s market would be eyeing to raise capital in 12 or 18 months and added that this is one of the main concerns for firms entering the secondary market in Saudi Arabia.  

“When we spend time speaking to our clients who are considering listing in Saudi Arabia, one of the issues which can come up is, if I am a private equity owner or a growth capital company, we will look to raise capital in 12 or 18 months. How easy will that be for me, especially considering the fact that the secondary market is relatively undeveloped in the Kingdom,” said Wright. 


The hidden side of clean power: why grid integration matters

Updated 07 March 2026
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The hidden side of clean power: why grid integration matters

  • Exploring the predator’s role in the region’s heritage and ecosystem

RIYADH: As Saudi Arabia expands solar, wind, and battery projects, a critical piece of the sustainability puzzle often goes unseen: grid integration.

Before renewable plants can deliver power, engineers must ensure the grid remains stable, safe, and efficient under new loads. Integrating renewables into existing systems has become one of the toughest — and most crucial — steps toward building a truly sustainable energy network.

Engineers widely consider the electricity grid the largest and most complex machine ever built. As more renewable capacity comes online, managing it is becoming as much a data challenge as an energy one.

“A big share of Saudi Arabia’s electricity is generated from renewables and more projects are connected to the grid each year. This shift changes how the electricity grid is managed on a day-to-day basis,” Saeed Al-Zahrani, general manager of data enterprise storage leader NetApp in Saudi Arabia, told Arab News.

“To add context, traditional generation can usually be adjusted in a controlled way. Wind and solar, however, move with conditions such as cloud cover, dust, temperature and wind speed, meaning supply can rise and fall quickly,” he said.

In this environment, grid integration is less about whether enough electricity can be produced and more about whether operators can see and respond to changes across the network fast enough to maintain stability.

Frequency, voltage, congestion, and reserve margins all become more dynamic. Real-time measurements, accurate forecasting, asset status updates, and weather intelligence must come together into a reliable, unified system view.

“From NetApp’s perspective, this is where the data foundation matters most, because the grid can only act confidently when the information behind the decisions is timely, governed, and reliable,” Al-Zahrani said.

Under Vision 2030, Saudi Arabia aims to generate 50 percent of its energy from renewables — an ambitious target that introduces new technical and operational challenges. Weather variability, cyber threats, and system coordination can all affect grid stability.

“Every device that operates under this control regime that’s connected to the grid is digital nowadays. You have smart inverters, you have sensors, you have energy management systems, and all those devices and systems are potential entry points for attackers,” Charalambos Konstantinou, a professor at KAUST, told Arab News.

As solar capacity grows, ensuring seamless integration into the national grid has become one of the most complex challenges of the energy transition. (SPA)

His lab focuses on maintaining reliable and secure power infrastructure, developing faster and smarter control algorithms capable of responding to sudden changes in the power system.

“This is what we’re working to make sure that those algorithms remain robust. They remain resilient. They remain secure, even if something, maybe an extreme weather event, or a cyber attack, is aiming to disrupt them,” he said.

Rapid digitalization, however, can create vulnerabilities if security measures do not keep pace. In 2012, Aramco experienced the Shamoon attack, a computer virus that affected around 30,000 workstations.

“When you scale fast, security practices typically lack behind deployment, and this is essentially what we focus a lot in my group: making sure that internet-connected or digital devices cannot be used as an entry point to destabilizing the grid,” Konstantinou said.

One particularly concerning threat involves load-altering attacks, which can disrupt power systems without requiring deep penetration of the grid itself.

“If an attacker is able to control a large amount of what we call internet connected high voltage devices — think HVAC systems, air conditioning systems, water heaters, electric vehicle chargers — and is able to switch them on and off at the same time, simultaneously, then he or she can create a certain imbalance between generation and demand, and then the grid (becomes) very difficult to handle,” he said.

A view of an Aramco refinery in the Eastern Province. (Supplied)

Such disruptions could potentially trigger widespread blackouts.

Beyond cybersecurity risks, the physical environment also presents challenges. Saudi Arabia’s relatively consistent weather can be an advantage for renewable energy production, but factors such as dust accumulation on solar panels and thermal stress on inverters can still affect performance.

Testing technologies under local conditions — including extreme heat, network behavior, and the mix of generation assets — is essential before large-scale deployment. Equally important are intelligent coordination frameworks that allow flexible energy assets to work together while optimizing energy use across industries.

Renewable-heavy grids across Saudi Arabia and neighboring countries increasingly depend on real-time data from SCADA systems, substation automation, and weather monitoring to balance supply and demand. While these continuous data flows improve efficiency, they also introduce new risks, including potential system disruption and data manipulation.

Vasily Dyagilev, regional director for the Middle East, Russia and CIS at Check Point Software Technologies Ltd., highlighted the scale of these vulnerabilities.

Vasily Dyagilev, regional director of Check Point Software Technologies Ltd. for the Middle East. (Supplied)

“In Saudi Arabia, 58 percent of organizations have experienced information disclosure vulnerabilities, while remote code execution and authentication bypass remain significant threats. The complexity of managing legacy operational technology networks alongside modern cloud-based systems and third-party integrations makes it difficult for utilities to maintain full visibility over their risk landscape.

“The region has also seen high-profile incidents where attacks on SCADA systems led to operational disruptions, highlighting the fragility of critical infrastructure. Effective exposure management, including continuous vulnerability discovery and prioritized remediation based on operational risk, is now recognized as essential for maintaining grid stability and protecting the integrity of real-time data streams.”

Alongside cyber and operational risks, uncertainty in weather patterns remains a key variable in renewable power generation.

Omar Knio, another professor at KAUST, studies how atmospheric processes influence renewable energy systems through uncertainty quantification and climate modeling. Dust particles originating in the Arabian Peninsula, for instance, can travel thousands of kilometers and influence weather patterns across South Asia.

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“Phenomena at tiny little scales end up, through teleconnections, making very important contributions to weather patterns and to the climate as far as renewables themselves, because these phenomena affect the solar and wind potentials, they’re extremely important to predict accurately,” Knio said.

“The presence of dust in the atmosphere and cloud cover affect the output of solar panels or solar plants, and similar phenomena happen to wind, and that's why they are really challenging. It's important to be able to predict them as accurately as we can.”

Maintaining a stable renewable grid requires both short-term and long-term forecasting. Hourly predictions are essential for balancing supply and demand, while longer-term projections help planners prepare infrastructure and storage.

Artificial intelligence is increasingly helping researchers build models that forecast weather patterns, simulate thermal behavior in buildings, and analyze industrial energy use. In areas where detailed physical models are limited, AI also helps uncover patterns in human behavior and electricity consumption.

“An example is power demand, consumer behavior, or changes in patterns that have to do with the day of the week, whether it's a weekend, a holiday season, whether it's during harsh weather, or it's during Ramadan: how do these patterns change? And artificial intelligence is really bringing the capability for us to represent and forecast these very complex phenomena,” Knio said.

As renewable energy penetration approaches higher levels, the system becomes more sensitive to fluctuations and extreme events.

“There comes a point where we start having a very dramatic rise in the need for storage capabilities. And the important aspect of why our fuel is important. We can make them cleaner, but they’re wonderful in the sense that they are plentiful right now. They are cheap, but more importantly, they are quite economical to store after. After fuels come nuclear power. So it’s really that storage capability. As we approach 100 percent, the need for storage becomes extremely heightened,” Knio said.