Closing Bell: Saudi bourses end week in red 

Fawaz Abdulaziz Alhokair Co. was the best-performing stock of the day on the main market. Shutterstock.
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Updated 02 August 2024
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Closing Bell: Saudi bourses end week in red 

  • Total trading turnover of the benchmark index was $1.59 billion
  • MSCI Tadawul Index slipped by 0.48% to 1,512.59

RIYADH: Saudi Arabia’s Tadawul All Share Index shed 63.74 points or 0.53 percent to close Thursday’s trading session at 12,045.78. 

The total trading turnover of the benchmark index was SR5.98 billion ($1.59 billion), with 52 of the listed stocks advancing while another 171 declined. 

The Kingdom’s parallel market shed 41.89 points to close at 26,609.30, while the MSCI Tadawul Index slipped by 0.48 percent to 1,512.59. 

Fawaz Abdulaziz Alhokair Co. was the best-performing stock of the day on the main market, with its share price surging by 5.91 percent to SR8.25. 

Other top performers were Rabigh Refining and Petrochemical Co. and National Medical Care Co., whose share prices soared by 4.96 percent and 3.58 percent, respectively. 

The worst performer of the day was Gulf Union Alahlia Cooperative Insurance Co., as its share price slipped by 9.99 percent to SR17.30. 

On the announcements front, Perfect Presentation for Commercial Services Co. said that its net profit for the first six months of this year surged by 44.31 percent to SR88.45 million compared to the same period in 2023. 

In a Tadawul statement, the company, also known as 2P, noted that the rise in net profit was driven by continued growth across all business segments, as well as the launch of a cybersecurity enterprise earlier this year. 

National Medical Care Co., also announced its financial results for the first six months of this year on Thursday. 

According to a Tadawul statement, the firm’s net profit soared by 44.89 percent year-on-year to SR150.8 million in the first half of 2024. 

Power and Water Utility Co. for Jubail and Yanbu reported a decline in net profit by 59 percent to SR108.13 million in the first half of this year, compared to the year-ago period. 

In a Tadawul statement, the firm said that the fall in net profit was due to increased fuel costs used in the production process, which went up by 46.62 percent year-on-year in the first six months of 2024. 

Another company that released its earnings statement on Thursday was Salama Cooperative Insurance Co. 

The insurance firm reported a fall in profit by 29.10 percent year-on-year to SR21.48 million, driven by a decline in revenue. 


TotalEnergies awarded 300MW solar project in Saudi Arabia

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TotalEnergies awarded 300MW solar project in Saudi Arabia

RIYADH: A 300-megawatt solar project awarded to TotalEnergies by Saudi Arabia’s Ministry of Energy highlights the company’s expanding renewable energy portfolio in the Kingdom, CEO says. 

Patrick Pouyanne, who is also the firm’s chairman, announced the project during the Saudi Green Initiative Forum, adding that TotalEnergies is already constructing a 114 MW solar plant and has now been awarded a 300 MW facility in Saudi Arabia. 

TotalEnergies’ push into renewable energy aligns with its broader global transition strategy, which currently includes 28 gigawatts of renewable capacity. 

“Today, we will announce that we have been awarded by the Ministry of Energy a 300 MW solar plant. We are already building a 114 MW, another one 300 MW,” Pouyanne stated. 

“Yes, we are investing today. TotalEnergies has around 28 GW of renewable capacity. So, you know, we are investing four periods per year. So it’s a serious business, including in the Kingdom,” he added. 

However, he emphasized that meeting the demand for reliable, affordable energy remains a pressing priority, mainly as global populations grow and emerging markets seek a higher quality of life. 

“Transitioning away in a just, orderly and equitable manner does not mean exiting tomorrow. It means that you have to find a way to meet the demand of today and as well, to prepare the future today,” he added. 

In addition to renewables, TotalEnergies is heavily invested in Saudi Arabia’s petrochemical sector. 

The company is currently working on an $11 billion petrochemical complex called Amiral in Jubail in partnership with Saudi Aramco. 

“We are investing now $11 billion to build a huge petrochemical project, what Aramco called oil-to-chemicals. You know, we are part of it. We have already built 30 percent of it. So you have 7,000 workers on the ground in Jubail today to build this giant petrochemical and chemical complex,” Pouyanne said. 

Pouyanne also addressed hydrogen as a critical enabler of the energy transition while highlighting the challenges associated with its implementation. 

“Hydrogen is an important enabler for the transition. The issue is, it’s not only the cost of constructing projects for hydrogen, which we did the engineering for one big project, as I mentioned, it’s the transport, it’s the storage, it’s the distribution when it reaches its destination. Eighty percent of the cost is there, and 20 percent or 25 percent of the cost is in the construction,” he explained. 

TotalEnergies’ activities in Saudi Arabia reflect the company’s integrated approach to energy development, balancing renewables with traditional sectors like refining and petrochemicals. 

“We do in the Kingdom what we do in France, which means refining, petrochemicals and renewables,” Pouyanne said, reinforcing TotalEnergies’ commitment to advancing energy solutions that meet both current and future needs.


Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom

Updated 23 min 12 sec ago
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Saudi Arabia, World Bank Group to establish global knowledge hub in the Kingdom

JEDDAH: Saudi Arabia has partnered with the World Bank Group to launch a global knowledge hub, designed to leverage expertise for sustainable development.

Through its National Competitiveness Center, the Kingdom signed a strategic agreement with the international organization to support its member countries in achieving developmental goals by sharing expertise in economic reforms.

The deal was signed by President of the WBG Ajay Banga and the Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi, who also serves as chairman of the NCC, according to the Saudi Press Agency.

The Kingdom has implemented more than 800 economic and developmental reforms coordinated through various government entities and sub-committees within the NCC.

These efforts have simplified business operations in priority sectors, leading to Saudi Arabia’s ranking of 16th globally out of 67 countries in the Global Competitiveness Index by the Switzerland-based International Institute for Management Development.

Commenting on the agreement with the WBG, Al-Qasabi emphasized that the deal highlights the Kingdom’s distinguished experience in implementing economic and developmental reforms, supported by Crown Prince Mohammed bin Salman.

He added that Saudi Arabia, through its NCC, has developed a unique competitiveness model that has boosted its global standing and contributed to significant improvements in international competitiveness reports.

“This success has sparked interest from various countries, leading them to seek support in implementing similar competitive models,” the minister said.

Al-Qasabi remarked that the knowledge hub will serve as an international platform for countries to benefit from Saudi Arabia’s and the World Bank Group’s expertise in economic and developmental areas, ultimately enhancing global competitiveness.

Banga said that the hub is a crucial step in expanding global knowledge impact, particularly as economic diversification and policy reforms create more competitive and efficient business environments.

The hub’s activities will include research, advisory services, and knowledge exchange, as well as capacity building and the development of innovative solutions and policies that address drivers of competitiveness, as per SPA.

This includes enhancing the business environment, fostering productivity growth and entrepreneurship, as well as developing small and medium-sized enterprises, innovation, and trade policy. It also covers investment promotion and the development of competitive markets.

The hub will also focus on Saudi Arabia’s economic transformation, including export diversification and trade policies, as well as domestic resource mobilization and public spending.

The steering committee for the hub will include representatives from Saudi Arabia’s Ministry of Commerce, Ministry of Finance, and Ministry of Economy and Planning, along with members from the NCC and the Saudi Business Center.

In April, the NCC and the WBG announced in Washington their intention to establish a knowledge center in Saudi Arabia as part of both sides’ efforts to spread the culture of economic reforms globally.

The announcement was attended by Al-Qasabi, the Kingdom’s Ambassador to the US, Princess Reema bint Bandar bin Sultan, and Banga.

The WBG chose the Kingdom for the hub due to its pioneering efforts over the past seven years in implementing economic reforms, during which an integrated business model was developed, leading to high effectiveness in achieving reform goals and increasing commitment rates, according to SPA.


Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

Updated 49 min 3 sec ago
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Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

RIYADH: Saudi Arabia is set to launch two multi-billion-dollar companies by the end of 2025 as part of plans to boost its communications and information technology sector.

The new tech firms are among a range of initiatives set out in the Ministry of Finance’s budget report, which also includes plans to launch a Saudi satellite for space weather research under the Artemis 2 mission. 

Under the Kingdom’s economic diversification plan Vision 2030, Saudi Arabia is aiming to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by the end of the decade.

The budget report also revealed a SR42 billion ($11.2 billion) allocation to the infrastructure and transportation sector for 2025. 

The sector’s main functions include the development of roads, ports, airports, and real estate. 

It also encompasses communications, information technology, data and artificial intelligence, and digital government. Additionally, it oversees postal services, space initiatives, and industrial cities. 

Digital and infrastructure developments 

The government is set to enhance data management by advancing the National Data Index, promoting responsible artificial intelligence adoption, and expanding the National Data Bank. 

Smart city initiatives focused on safety and sustainability are also being prioritized. 

In transportation, planned developments include new air carrier licenses for Dammam and Riyadh Airlines, expanded public transport services, and six new logistics zones at Saudi ports. 

These efforts align with the Kingdom’s Vision 2030 strategy to create a modern, efficient, and innovation-driven economy.  

The Kingdom is building a thriving digital economy by adopting advanced technologies, with data and AI as key enablers. 

By fostering research, development, and innovation, and forming strategic global partnerships, Saudi Arabia aims to cultivate entrepreneurship and deliver groundbreaking solutions, establishing itself as a hub for technological excellence and sustainable development. 

Central to this transformation is the Kingdom’s commitment to creating a business-friendly climate through a range of initiatives. 

The Regional Headquarters Program offers compelling incentives, including a 30-year tax exemption, to attract global companies to set up their regional offices in Saudi Arabia. 

This has significantly boosted the country’s foreign direct investment. In 2023, FDI inflows reached SR96 billion, according to the Ministry of Investment, exceeding the National Investment Strategy target of SR83 billion by 16 percent. 

As a percentage of nominal GDP, FDI stood at 2.4 percent, aligning with the NIS goal. 

The surge in investment licenses further highlights this growth, with the Kingdom issuing 3,810 licenses in the third quarter of 2024 — a 73.7 percent increase compared to the previous year. 

Notably, information and communication technology licenses saw a 68 percent rise, underscoring the Kingdom’s strong emphasis on advancing its digital economy and technology sector. 

Digital economy and space milestones 

The Ministry of Finance report noted key recent achievements in the digital economy, including Saudi Arabia ranking sixth globally, and second among G20 countries, in the UN E-Government Development Index.

The Kingdom also ranked second among G20 nations in the ITU’s ICT Development Index 2024, which measures global progress in digital inclusion and infrastructure. 

This index tracks global progress in digital inclusion and infrastructure, guiding policy and investments in technology, and reflects countries’ performance in digital adoption and connectivity. 

Other achievements included 15 companies graduating from the Space Tech Entrepreneurship Incubation Program, attracting over SR41 billion in investments. The National Semiconductor Hub was also launched, focusing on localizing semiconductor technologies and fostering advanced education collaborations. 

Many nations are harnessing space technology to drive digital innovation and economic growth. Saudi Arabia, as highlighted by the World Economic Forum, is leveraging space exploration to diversify its economy and build a technology-driven industry. 

In a historic milestone, Saudi astronauts journeyed to the International Space Station for the first time in 2023, reflecting the Kingdom’s growing focus on space. 

Under the Vision 2030 initiative, Saudi Arabia has committed $2 billion over the next decade to developing its space sector. 

This investment is set to advance scientific research, enhance national security, and accelerate the Kingdom’s transition from a resource-dependent economy to a knowledge-based one. 

Saudi Arabia has also announced plans to strengthen ties with NASA and global partners to advance space-related industries, digital innovation, and scientific collaboration. 

During a recent visit to the US, Saudi Space Commission Chairman Abdullah Al-Swaha discussed strategic partnerships with NASA Administrator Bill Nelson and explored investment opportunities in space, AI, and the digital economy with US leaders. 

AI and research advancements 

The Kingdom made significant strides in data analytics, integrating data from 27 government systems into a centralized data lake. The Arabic-language generative AI model “ALLaM” received global recognition, ranking first in its category, enhancing Arabic AI capabilities. 

This model was developed to process and understand Arabic. It aims to enhance the capabilities of artificial intelligence in the language, making it more accessible and effective across various applications. 

It was ranked first globally in its category by the Arabic Massive Multitask Language Understanding standard evaluation, a leading benchmark for Arabic language models. 

During the Hajj season, smart solutions like Basier and Sawaher, along with AI-powered cameras, were deployed to improve crowd management and ensure pilgrim safety. 

Additionally, the Kingdom reinforced its position as a global AI innovation hub by hosting the third Global AI Summit to foster international collaboration. 

Research, development and innovation 

The Open Access National Gateway was launched to provide scientists and researchers access to advanced infrastructure and over 1,000 laboratories across 30 agencies. 

The transportation and logistics sector saw a 6.4 percent annual growth in GDP in the first half of 2024, with over SR200 billion in investment contracts signed to enhance services and partnerships. 

Saudi Arabia also secured leadership roles in several international organizations, bolstering its global presence as a logistics hub. This includes hosting the UNCTAD Global Supply Chain Forum in 2026, chairing the Arab Civil Aviation Organization, and securing a seat on the International Maritime Organization Council. 

Additionally, the Future of Aviation Forum 24 was held in Riyadh, bringing together global aviation leaders and securing investment offers worth SR375 billion for the aviation sector. 

Transportation and logistics 

During the Hajj season of 2024, several eco-friendly and modern transportation initiatives were implemented to improve services for pilgrims. 

These included self-driving vehicles, a self-driving air taxi experience, and the use of rubberized and cooling asphalt at holy sites. 

Additionally, aircraft seat capacity for pilgrims was increased to accommodate over 24 million passengers, while the Haramain Train saw a 42 percent rise in passengers, serving more than 1.07 million pilgrims. 

Other initiatives included the launch of the Passengers with No Bags program, performance-based contracts for road network maintenance, and the establishment of the Unified Law for International Land Transport among GCC countries. 

The Kingdom also launched five travel lounges at major airports and expanded Abha International Airport. 


Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

Updated 03 December 2024
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Saudi Arabia, France to collaborate on 3 renewable energy projects: Al-Falih

RIYADH: Three renewable energy projects are set to be developed in Saudi Arabia with the involvement of French companies, according to Minister of Investment Khalid Al-Falih.

The initiatives, which will be officially announced by the Saudi Energy Minister Prince Abdulaziz bin Salman in the presence of French President Emmanuel Macron, are part of the Kingdom’s growing efforts to lead the global transition toward sustainable energy. 

“I don’t know if the news is out, but I’ll break it in. There will be three major renewable projects announced by His Royal Highness Prince Abdulaziz and signed in the presence of President Macron,” Al-Falih said during the Saudi Green Initiative Forum held in Riyadh at COP16. 

Speaking on the broader shift toward sustainability, Al-Falih emphasized that green finance is central to the future of global investment, highlighting its alignment with Saudi Arabia’s vision for sustainable development. 

“Globally, I think the world today is really moving toward financing, investing, and supporting sustainability and energy and materials,” he said, emphasizing key areas such as water management and combating desertification. 

According to Al-Falih, trillions of dollars in annual investments are required globally to address these challenges. 

The minister remarked that the amount of capital across the world available for sustainable investments is vast and growing rapidly. 

“We estimate that as of last year, $3 trillion was the pool of money available last year. And I think what is more astonishing, what is more wow to me is it is projected to grow by a factor of seven of the $3 trillion by 2033, eight years. So the funds are there,” he said. 

He added that governments must play a key role in making investments attractive by de-risking them for private capital. 

“It needs to go to a place where there is demand, and demand is key,” he explained. “It needs governments and systems that (investors) can trust and that has all of the elements of stability, predictability. And we believe Saudi Arabia is that place for them to look at,” he said. 

The Kingdom is positioning itself as a global hub for green investment, backed by robust demand, investor trust, and stable governance. 

“The future of finance is green. It is green, which happens to be the color of our flag. It happens to be the theme of this great initiative His Highness has launched — Green Saudi, Green Middle East,” Al-Falih said, adding that the country provides a stable environment for investors by managing risks and offering predictable opportunities. 

Al-Falih also pointed to Saudi Arabia’s advances in renewable energy production, particularly wind and solar power, describing these sectors as a “win, win, win” for the nation. 

“The lowest hanging fruit, which we started with, and His Royal Highness Prince Abdulaziz is doubling down on in a massive way, is the green electrons producing electricity from wind and solar,” he said, explaining that these projects not only boost sustainability but also create economic opportunities. 

“This is for us, you know, win, win, win because we displace liquids that can be exported to places that need liquid hydrocarbons for that economic longevity.” 

In addition to renewable energy, Al-Falih highlighted the Kingdom’s rapid growth in venture capital and its efforts to foster a startup ecosystem. 

He also underlined that Saudi Arabia has risen to become the leading venture capital market in the Middle East, with VC growing “by a factor of 21 over the last few years.” 

The government has supported this growth through initiatives such as Biban, LEAP, and the Garage, a flagship incubator inspired by France’s STATION F. 

“We are awarding thousands of premium residencies to all of these entrepreneurs because we want them to feel at home,” he added. 

“The system of venturing and startups is not only linked to Saudi companies. I think what’s exciting is when we have our conferences. We just had Biban. A few months earlier, we had LEAP; hundreds, if not thousands, of startups came from around the world, and we’re licensing them at MISA (Ministry of Investment).” 

Al-Falih also underscored the Kingdom’s commitment to driving global green investment, envisioning Saudi Arabia as the primary hub for sustainable finance. 

“We will be launching many investment schemes around green investments. And as I mentioned, the future for finance is green, and the hub of that green investment is going to be in Saudi Arabia. And those funds will naturally flow to where the hub is, where the center of gravity is going to be,” he said. 


AI will help Saudi Arabia achieve ambitious growth targets: expert

Updated 03 December 2024
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AI will help Saudi Arabia achieve ambitious growth targets: expert

RIYADH: Artificial intelligence will help Saudi Arabia to achieve its ambitious goals for growth, while reducing its reliance on other targets, according to a top executive.

Jad Haddad, partner and global head of consultancy Oliver Wyman’s AI division Quotient, spoke to Arab News recently about how technological advances are reshaping the workforce.

“Today, there is a shortage of labor, particularly in Saudi Arabia,” he said. “If the Kingdom’s going to reach its very ambitious targets of growth, in a way AI and the embracement of AI will basically help achieving those very aggressive, but also achievable, as we’ve seen, targets, with less dependency on others.”

Saudi workplaces are already well advanced in using generative AI tools, such as text generator Chat GPT, with 68 percent of employees surveyed by Oliver Wyman making use of the technology compared with a global average of 55 percent.

Haddad noted how another survey found that more than 90 percent of CEOs at New York Stock Exchange-listed companies also invest heavily in AI and believe in its promise. “But yet we haven’t seen a lot of disruption to jobs.”

He added: “Will we see disruption in the job market? Probably. I think AI already is augmenting a lot of the things that we do, and as we have applications that are implemented and scaled within organizations, things are going to change.

“But at the same time, we can look at it from the other way around. I think it is already creating a lot of jobs as well.”

The forward-looking Gulf is a leader in the adoption of AI technologies, according Haddad, who highlighted the fact that some of the region’s biggest companies are employing the technology.

National oil companies such as Aramco and ADNOC “are really taking up AI, and that’s also great because they are a big part of the society but also of the economy,” he said.

“I think the region is really embracing AI, much faster than any other region, and is really seeing the benefit and the promise of AI.”

Saudi Arabia’s early focus on the new technology was evidenced when the Kingdom founded its government AI agency SDAIA in 2019.

The entity employs around 3,000 people, and is focused on establishing governance related to AI, and positioning the country as a leader in the field.

A November report from SDAIA highlighted Saudi Arabia’s global leadership in AI, as evidenced by its top ranking in the pillar of government strategy in the 2023 Global AI Index by Tortoise Media.

In 2023, the Kingdom joined the UN AI Advisory Body, aiming to promote the responsible use of AI.

Government spending on technologies, including AI, grew at a compound annual growth rate of 59 percent between 2019 and 2023, according to the Saudi Press Agency.

In September 2024, at the third edition of SDAIA’s Global AI Summit, the authority unveiled the AI Adoption Framework Document, providing a guiding reference for adopting AI in the public and private sectors.

SDAIA also recently announced the activation of AI offices in 23 government entities.