Saudi Arabia rises 9 places in global AI talent ranking, LinkedIn data reveals

The Kingdom has also advanced five positions in AI skills penetration over the past year, according to LinkedIn. Shutterstock
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Updated 06 June 2024
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Saudi Arabia rises 9 places in global AI talent ranking, LinkedIn data reveals

RIYADH: Artificial intelligence talent is flocking to Saudi Arabia, according to data from LinkedIn which shows the Kingdom has climbed nine spots in the global rankings for attracting AI experts.

Saudi Arabia now ranks 15th globally in talent attraction in this sector relative to population size, up from 24th last year, indicating a positive net flow of talent.

Additionally, the Kingdom has advanced five positions in AI skills penetration over the past year, moving from 35th place to 30th place, as reported by the world’s largest professional social network.

Ali Matar – Europe, Middle East, and Africa growth markets leader and head of LinkedIn in the Middle East and North Africa region – said that the latest labor market data offers additional insights into how Saudi Arabia is becoming one of the most attractive places to work as it progresses toward Vision 2030.

“The insights are indeed a nod to the Kingdom’s efforts to establish itself as an AI and data leader and signal a growing tech industry that is curating a savvy and adaptive workforce.”

LinkedIn’s latest data offers insight into the Saudi workforce’s rapid transformation to align with the ambitions of the Kingdom’s Vision 2030 economic diversification intiative and the opportunities presented by the rise of AI. LinkedIn, which has over 9 million members in the Kingdom, highlighted these trends.

One notable aspect highlighted by the data is that Saudi Arabia leads the MENA region in several disruptive digital skills, including development tools, materials sciences, and nanotechnology.

The report added that these skills are associated with developing new technologies that are expected to impact the labor market in the coming years.

Furthermore, Saudi Arabia ranks second in the MENA region across all digital skills categories on an aggregate level, with the UAE leading the region and demonstrating the Kingdom’s overall strong performance in acquiring digital competencies.

The global social network’s data also revealed that Saudi Arabia demonstrates exceptional proficiency in applied digital skills such as animation and computer graphics compared to other countries in the MENA region.

In addition, the Kingdom surpasses the global average in animation skills, indicating a high level of expertise and competence in this specific digital skill area.

Moreover, the data showed that Saudi Arabia’s cybersecurity trends outperform the global average, registering at 3.1 percent compared to the worldwide norm of 2.5 percent. 

Additionally, the country is progressively narrowing the gap in gender diversity within the industry, signifying positive momentum toward fostering inclusivity and representation.

Insights from LinkedIn also highlighted a global uptick in generative AI, with an overwhelming 79 percent of Saudi employees anticipating substantial shifts in their work dynamics over the coming year due to AI advancements.

The findings also showed that the Kingdom’s AI talent pool is steadily rising, with the pool doubling between 2016 and 2023. This upward trend appears to be gaining momentum, evidenced by a 24 percent year-over-year increase in AI talent-hiring relative to overall hiring.

According to LinkedIn, this upward trend is reinforced by recent data illustrating the widespread adoption of AI skills across Saudi Arabia. 

The data emphasizes that the country’s fastest-growing AI skills include reinforcement learning, pattern recognition and predictive modeling as well as supervised learning, and PyTorch, all of which contribute to the advancement of generative AI.


Standard Chartered starts custody services for digital assets in UAE

Updated 10 September 2024
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Standard Chartered starts custody services for digital assets in UAE

DUBAI: Standard Chartered said on Tuesday it had begun offering digital asset custody services in the UAE, with Brevan Howard Digital, the crypto and digital asset division of the British hedge fund, as an inaugural client.

The emerging markets focused bank said it launched the business in the country because of its “well-balanced approach to digital asset adoption and financial regulation.”

“Standard Chartered’s global reputation and demonstrated commitment to this space adds a layer of credibility that is meaningful for institutional adoption,” Brevan Howard Digital CEO Gautam Sharma said in a joint statement.

The UAE has been working hard to attract some of the world’s biggest crypto firms, luring business from Binance, OKX, among others. It has also been trying to develop virtual asset regulation to attract new forms of business.

It has also managed to attract big hedge funds.

Standard Chartered is among several banks that have been extending their foray into the crypto sector as more institutional investors adopt the asset class.


Saudi Arabia to scale back debt issuance in H2: Fitch Ratings

Updated 10 September 2024
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Saudi Arabia to scale back debt issuance in H2: Fitch Ratings

RIYADH: Saudi Arabia plans to reduce its debt issuance in the second half of 2024, thanks to substantial dividend payments from Aramco that have alleviated the need for sovereign financing, according to Fitch Ratings.

This decision comes after a period of significant debt issuance in the first half of the year, reflecting the government’s strategic fiscal management.

In the first half of 2024, Saudi Arabia emerged as the largest issuer of US dollar debt among emerging markets, excluding China, and maintained its position as the top global sukuk issuer.

Fitch Ratings anticipates substantial expansion in Saudi Arabia’s debt market in the coming years. Bashar Al-Natoor, global head of Islamic Finance at Fitch, stated.

“The Saudi sukuk and bond market is expected to surpass $500 billion in outstanding value within the next couple of years.”

Al-Natoor highlighted that most Saudi sukuk rated by Fitch are investment-grade, underscoring the robustness of the country’s Islamic finance sector.

Al-Natoor also emphasized the crucial role of Vision 2030 projects, ongoing diversification efforts, and regulatory reforms in fortifying the country’s debt market. He said: “We expect substantial dollar debt issuance to continue in 2025 as oil revenues moderate,” reflecting the necessity for ongoing financing as Saudi Arabia transitions to a more diversified economy.

As the Kingdom pursues its Vision 2030 objectives, these factors will significantly shape its financial markets.

The report highlights that Saudi Arabia’s strategic debt management and reforms position it as a prominent player in global debt markets during its economic transition.

By mid-2024, Saudi Arabia’s debt capital market had expanded by 18 percent year on year to $407.7 billion, with nearly equal proportions in US dollar and riyal-denominated issuances.

The debt issued in the first half of 2024 equaled the total for all of 2023, underscoring the rapid growth of Saudi Arabia’s debt market.

Approximately two-thirds of the 2024 issuances were sukuk, highlighting the Kingdom’s strong preference for Shariah-compliant financing. Additionally, nearly 10 percent of dollar-denominated debt consisted of environmental, social, and governance instruments, reflecting a growing interest in sustainable finance.

Foreign investor participation in Saudi Arabia’s domestic government debt market has surged to 7.2 percent of local issuances by mid-2024, a significant increase from 0.2 percent in 2022.

Local banks continue to dominate the market, holding over 75 percent of the government debt share, with a pronounced focus on sukuk due to Shariah compliance requirements.

While foreign investor participation in Saudi Arabia’s debt market has risen— thanks in part to reforms and the Kingdom's inclusion in global bond indices—domestic banks remain the dominant players. Many of these banks, adhering to Shariah compliance, focus on sukuk rather than conventional bonds, reinforcing Saudi Arabia’s position as the world’s largest sukuk issuer.

The increase in foreign investments is largely attributed to key reforms, including Saudi Arabia’s entry into global bond indices like the FTSE Emerging Markets Government Bond Index and enhanced integration with international central securities depositories such as Euroclear and Clearstream.

Despite the promising growth in the debt market, Fitch Ratings has cautioned that it remains vulnerable to several risks. These include fluctuations in oil prices and interest rates, concerns over the scale and purpose of debt issuance, and ongoing geopolitical uncertainties.


Closing Bell: Saudi main index rises to close at 11,986

Updated 10 September 2024
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Closing Bell: Saudi main index rises to close at 11,986

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Tuesday, gaining 23.7 points, or 0.2 percent, to close at 11,986.  

The total trading turnover of the benchmark index was SR7.18 billion ($1.94 billion), as 143 of the stocks advanced and 80 retreated.   

The Kingdom’s parallel market Nomu rose 104.79 points, or 0.42 percent, to close at 25,600.58. This comes as 32 of the listed stocks advanced, while 31 retreated.   

The MSCI Tadawul Index gained 2.0 points, or 0.12 percent, to close at 1,492.12.   

The best-performing stock of the day was Saudi Enaya Cooperative Insurance Co., whose share price surged 9.94 percent to SR17.92.  

Other top performers were Amana Cooperative Insurance Co. as well as Saudi Industrial Development Co., with their share prices rising 9.85 percent and 5.96 percent, respectively. 

The worst performer was Tourism Enterprise Co., whose share price dropped by 4.21 percent to SR0.91.   

Other worst performers were Saudi Fisheries Co. and Miahona Co., with their share prices slipping 4.14 percent and 4.00 percent to reach SR26.6 and SR30, respectively. 

The best performer in the parallel market was Leaf Global Environmental Services Co., whose share price surged 18.88 percent to SR85.  

Other top performers in Nomu were Fad International Co. as well as Qomel Co., with their share prices rising 5.59 percent and 5.5 percent, respectively. 

The worst performer was Banan Real Estate Co., whose share price dropped by 6.18 percent to SR5.16.   

Other worst performers were Enma Al Rawabi Co. and Al Rashid Industrial Co., with their share prices dropping 4.9 percent and 4.37 percent, respectively. 

On the announcement front, the Capital Market Authority approved the public offering of Jadwa Investment Co. for its “Jadwa Saudi Equity Fund II.”

Jadwa Investment is a prominent Saudi asset management and advisory firm established in 2006. 

Known for its focus on Shariah-compliant investments, the company manages a diverse portfolio that spans private equity, real estate, and public markets. 

This move marks another step in the expansion of the Kingdom’s equity fund landscape, which has been gaining momentum as the nation seeks to diversify its economy away from oil dependency.

This follows a series of reforms aimed at modernizing the financial ecosystem, including presenting more sophisticated investment products and the gradual liberalization of the stock market.

A central part of this modernization effort includes the introduction of exchange-traded funds, real estate investment trusts, and various Shariah-compliant financial instruments that cater to the growing demand for diverse investment options.

These reforms also encompass improvements in transparency, governance, and investor protection. The CMA has implemented stricter disclosure requirements and corporate governance standards, ensuring that companies listed on Tadawul adhere to global best practices.


Financial sector key aspect of high-level Saudi Arabia and Germany talks  

Updated 10 September 2024
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Financial sector key aspect of high-level Saudi Arabia and Germany talks  

JEDDAH: Saudi Arabia and Germany are set to strengthen their economic ties in the finance sector following high-level talks between officials from both countries. 

The Kingdom’s Investment Minister Khalid Al-Falih met with the European country’s Finance Minister Christian Lindner to discuss advancing investment relations, strengthen cooperation and address mutual interests in this critical area.  

This comes as Germany exported €705 million ($775.5 million) worth of goods to Saudi Arabia in June, while imports from the Kingdom totaled $180.4 million, resulting in a trade surplus of $595.1 million, according to the Observatory of Economic Complexity.  

Germany’s exports to Saudi Arabia increased by $89.5 million over the past year, while imports from the Kingdom dropped by $116.6 million, reflecting shifting trade dynamics.   

Referencing his meeting with Lindner In a post on his X account, Al-Falih said: “... we discussed ways to develop and advance investment relations between our two countries in a number of vital sectors of common interest, especially the financial sector.” 

Al-Falih also met with German Vice Chancellor and Minister for Economic Affairs and Climate Action Robert Habeck to explore new avenues for collaboration.  

The meeting, attended by Saudi Ambassador to Germany Prince Abdullah bin Khaled bin Sultan, underscored the commitment to deepening bilateral financial ties. 

Additionally, Al-Falih engaged with Jorg Kukies, state secretary at Germany’s Federal Chancellery, to discuss strategies for strengthening economic relations.  

He also participated in a roundtable meeting with leaders of German companies across various sectors, including automotive, investment funds, energy, manufacturing, and supply chains. 

The minister noted that the meeting reviewed Germany’s key expansion interests in the Kingdom and highlighted the diverse investment opportunities available across various sectors. 

He also attended the NUMOV MENA 2024 conference, focusing on Saudi-German collaboration in emerging and advanced technologies.  

NUMOV, Germany’s oldest and largest organization promoting economic development with the Near and Middle East, has supported bilateral business relationships for 90 years. 

The Saudi minister also participated in the board meeting of the Arab-German Chamber of Commerce and Industry, where he discussed the partnership between the two countries and the Kingdom’s ambitious plans under Vision 2030. 

He also covered developments in key areas such as renewable energy, biotechnology, and artificial intelligence.


Egypt looks to secure bank financing to strengthen food security

Updated 10 September 2024
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Egypt looks to secure bank financing to strengthen food security

RIYADH: Egypt is actively seeking bank financing to purchase essential commodities and strengthen strategic reserves as part of its efforts to enhance food security.

In a recent meeting with Egyptian Minister of Supply Sherif Farouk, officials from First Abu Dhabi Bank Egypt discussed ways to boost partnerships with the private sector and financial institutions.

They highlighted the importance of bank financing for improving internal trade infrastructure and exploring investment opportunities in the food industry.

This initiative is part of Egypt’s broader strategy to improve food security amid rising global inflation and supply chain disruptions.

The meeting follows the General Authority for Supply Commodities, Egypt’s state grains buyer, issuing its largest-ever tender for 3.8 million metric tonnes of wheat in August.

Farouk emphasized the importance of strengthening collaboration with relevant entities in several key areas, including financing the import of essential goods, enhancing strategic reserves, and developing the Egyptian commodity exchange. He also stressed the need to expand silo construction and increase storage capacities.

The meeting was attended by Hossam El-Garhy, deputy head of the General Authority for Supply Commodities, and Ahmed Kamal, assistant minister and official spokesperson for the ministry.

From First Abu Dhabi Bank Egypt, the attendees included Mohamed Abbas Fayad, CEO and managing director; Mohamed Galal El-Din, general manager and head of Financial Markets; Moustafa Fahmy, executive director and head of Global Markets Sales; and Tamer El-Gohary, head of Banking Services.

Farouk highlighted the necessity of creating new avenues for collaboration with financial institutions and enhancing partnerships with the private sector.

The minister reviewed FAB Egypt’s banking offers, financing, and investment opportunities and discussed potential collaboration with the General Authority for Supply Commodities. The goal is to finance the procurement of necessities, bolster strategic reserves, and improve the commodity exchange infrastructure.

Fayad expressed strong enthusiasm for deepening cooperation with the ministry and its affiliates in areas such as internal trade, food security initiatives, and financing various ministry projects. These projects include the development of silos, strategic warehouses, logistics areas, and wholesale and semi-wholesale markets.

Egypt, a major global wheat importer, relies heavily on wheat to subsidize bread for tens of millions of its citizens. The General Authority for Supply Commodities alone imports approximately 5.5 million metric tonnes of wheat annually for this purpose.

GASC is currently seeking wheat shipments for periods spanning the 1st to 15th and the 16th to 30th of each month, starting from October through April, with a specific shipment window in February from the 16th to the 28th. The authority is looking to purchase the wheat on a free-on-board basis using 270-day letters of credit.