High 5G coverage shows Saudi Arabia is ‘technically advanced,’ says Nokia CEO

Pekka Lundmark, CEO of telecommunications firm Nokia. AN
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Updated 26 February 2024
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High 5G coverage shows Saudi Arabia is ‘technically advanced,’ says Nokia CEO

RIYADH: Saudi Arabia’s 5G coverage is almost double the global average of 42 percent thanks to “really good operators that have high demands,” according to a senior industry executive.

Speaking to Arab News, Pekka Lundmark, CEO of telecommunications firm Nokia, underlined how the Kingdom’s 77 percent coverage rate marks it out compared to several parts of Europe which are not as well connected.

Lundmark also discussed the upcoming deployment of 5G Advanced technology – expected to enter the market around 2025 – noting that this shift is a step towards the development of 6G.

Reflecting on the connectivity progress in the Kingdom, the CEO said: “Saudi market is technically advanced. There are really good operators that have high demands, which is good, and then there are some particular characteristics, which you don't have (anywhere) else and just one example would be the Hajj season where the pilgrims do their rituals.” 

He added: “This is an enormous stress test for the network when they take their videos and pictures and want to be connected and you have millions of people in the same place ... the Saudi market is driving us from a global perspective for innovations in network performance.”

Lundmark also stated that 5G Advanced has significant capabilities including supporting emerging technologies such as augmented reality and virtual reality devices. These services require high bandwidth, extremely low latency, high quality of service, and reliability from the network.

“Then on the industrial side, one example is that it will include support for drones, drones will have many applications in different types of physical industries,” Lundmark stated.

Additionally, 5G Advanced will support digital twins, a concept where a digital replica of an industrial site is created.

“There’s a lot it's going to add. That's really good because sometimes I hear that, now 5G is ready and now we can start waiting for 6G which will come at the end of the decade. That is completely untrue. There is so much still to do on 5G,” Lundmark stressed.

Furthermore, he further discussed the significance of the Saudi market in this sector and its expected growth in the future, highlighting that despite a weak global performance in 2023, the Middle East and Africa, including the Kingdom, experienced 8 percent growth in the industry.

The focus is on collaborating with key operators and developing enterprise customers for industrial digitalization and other initiatives.

“The market is attractive for investment, the population is young which is not the case in most other parts of the world. There's a lot of capital available and the ambition level of the actors is very high,” Lundmark said.

He added: “You definitely have the right conditions for investment, and again, when I look globally, of course, there are also other places where there is a lot of reasons to invest.”

During the interview, Lundmark further discussed the importance of safety, productivity, and material efficiency, especially in industries like oil and gas.

An integral aspect of the Vision 2030 agenda involves diversifying the Saudi economy, establishing entirely new industries, and embracing the new generation of networks and extensive digitalization.

Lundmark believes this presents a significant opportunity for the Kingdom to “to leapfrog directly into digital industries” as the Kingdom is starting from scratch in many areas as opposed to modernizing established systems.

He added: “That is exactly why we feel that the Saudi market is so exciting.”


 


Closing Bell: Saudi main market closes the week in red at 10,526 

Updated 25 December 2025
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Closing Bell: Saudi main market closes the week in red at 10,526 

RIYADH: Saudi equities ended Thursday’s session modestly lower, with the Tadawul All Share Index slipping 14.63 points, or 0.14 percent, to close at 10,526.09.    

The MSCI Tadawul 30 Index also declined 3.66 points, or 0.26 percent, to 1,389.66. In contrast, the parallel market outperformed, as Nomu jumped 237.72 points, or 1.02 percent, to close at 23,430.93.  

Market breadth on the main market remained tilted to the downside, with 156 stocks ending lower against 99 gainers.    

Trading activity eased further, with volumes reaching 80.46 million shares and total traded value amounting to SR1.66 billion ($442 million).    

On the movers’ board, Saudi Industrial Export Co. led the gainers, rising 6.6 percent to SR2.10, followed by Consolidated Grunenfelder Saady Holding Co., which advanced 6.43 percent to SR9.60.    

Raoom Trading Co. climbed 4.36 percent to SR61.05, while Astra Industrial Group gained 4.35 percent to close at SR139. Riyadh Cables Group Co. added 3.77 percent to end the session at SR135.00.    

On the downside, Methanol Chemicals Co. topped the losers’ list, falling 5.96 percent to SR7.41.  

Flynas Co. retreated 5.43 percent to SR61.00, while Leejam Sports Co. dropped 5 percent to close at SR100.80.    

Alramz Real Estate Co. slipped 4.64 percent to SR55.50, and Almasane Alkobra Mining Co. declined 4.55 percent to SR84.00.  

On the announcement front, ACWA Power said it has completed the financial close for the Ras Mohaisen First Water Desalination Co., a reverse osmosis desalination project with a capacity of up to 300,000 cubic meters per day, alongside associated potable water storage facilities totaling 600,000 cubic meters in Saudi Arabia’s Western Province.    

The project was financed through a consortium of local and international banks, with total funding of SR2.07 billion and a tenor of up to 29.5 years, while ACWA Power holds an effective 45 percent equity stake.  

Shares of ACWA Power ended the session at SR185.90, up SR0.2, or 0.11 percent.     

Meanwhile, Consolidated Grunenfelder Saady Holding Co. announced the sign-off of a customized solutions project with Saudi Aramco Nabors Drilling Co., valued at SR166.0 million excluding VAT.    

The 24-month contract covers the sale and maintenance of field camp facilities, with the financial impact expected to begin from the first quarter of 2026.