MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

Being held from Feb. 9-12 in Riyadh, LEAP 2025 is a flagship event in the Kingdom as it aims to become a global and regional tech hub, aligned with Vision 2030 goals. AN photo by Abdulrahman bin Shalhoub
Short Url
Updated 10 February 2025
Follow

MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

  • MODON inked agreements worth more than $1.6 billion to boost the digital economy and enhance technical capabilities
  • KAFD signed MoU with Huawei to implement smart city solutions, AI-driven technologies, and 5G-A networks

JEDDAH: Saudi Arabia saw $14.9 billion in tech investments on LEAP’s opening day, with major deals led by the Saudi Authority for Industrial Cities and Technology Zones, Digital Saudi, and NHC reinforcing its Vision 2030 drive for global tech leadership. 

Being held from Feb. 9-12 in Riyadh, LEAP 2025 is a flagship event in the Kingdom as it aims to become a global and regional tech hub, aligned with Vision 2030 goals. This comes on the back of the Kingdom’s growing push for investment in research, development, and innovation, with a World Economic Forum report projecting it will add $16 billion to Saudi Arabia’s gross domestic product by 2030.  

Here is a wrap-up of some of the major deals signed on day one: 

MODON secures over $1.6bn in digital economy deals 

Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, inked agreements worth more than SR6 billion ($1.6 billion) to boost the Kingdom’s digital economy and enhance technical capabilities. 

Among the key deals was a contract with Link Development Co. to upgrade the Shareek system to improve the investor experience in the industrial, logistics, and investment sectors. 

The authority also signed an SR2.64 billion deal with Saudi data infrastructure firm Ezditek to establish a 64-megawatt cloud data center in Riyadh’s technical zone. DataVolt, a subsidiary of Vision Invest, secured a similar SR2.5 billion investment agreement for a data center in the same zone.  

Further agreements included an SR1.3 billion investment by Gulf Data Hub to build data centers in Dammam Second Industrial City and Jeddah Oasis, covering 163,000 sq. meters. MODON also partnered with the Ministry of Communications and Information Technology to accelerate cloud infrastructure development. The agreement ceremony was witnessed by Ibrahim Alkhorayef, minister of industry and chairman of MODON. 

Additionally, MODON signed a memorandum of understanding with Taibah Valley, an affiliate of Taibah University, to promote the adoption of emerging technologies in the industrial and technical sectors and support research, development, and innovation. 

KAFD, Huawei partner on smart city innovation 

The King Abdullah Financial District Development and Management Co. signed an MoU with Huawei to implement smart city solutions, AI-driven technologies, and 5G-A networks. The partnership aims to optimize operations and enhance the digital experience across KAFD’s 1.6 million sq. meters of development. 

Ramez Al-Fayez, chief information technology officer at KAFD DMC, said the collaboration would help build a “fully integrated urban environment that supports digital transformation.”  

Beyond infrastructure enhancements, the agreement also focuses on technology talent development, offering specialized training programs and globally recognized Huawei certifications such as HCNA, HCNP, and HCIE. 

KAFD and Huawei will additionally collaborate on digital research and analysis to explore emerging technological opportunities, support Saudi Arabia's digital transformation goals, and strengthen Huawei's regional presence. 

GACA taps SiFi for automated expense management 

The General Authority of Civil Aviation partnered with Saudi fintech firm SiFi to automate expense tracking and financial management processes, streamlining operations across the sector. 

Saudi Geospatial Authority, NHC Innovation collaborate  

The General Authority for Survey and Geospatial Information has signed an MoU with NHC Innovation to integrate geospatial data into real estate development, smart mobility, and navigation technologies. The partnership will leverage the Saudi Arabia National Spatial Reference System, or SANSRS, to enhance surveying and data-driven decision-making. 

Key initiatives include integrating the country’s digital maps with the national geospatial platform, utilizing SANSRS for precise surveying, and advancing geospatial intelligence to support data-driven strategies.  

Saudi HR minister unveils digital services initiative 

Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi launched a suite of digital services to improve accessibility and efficiency. The initiatives include a Virtual Branch for online government services, a Digital Childcare Platform for verified childcare center information, and a Social Development Platform to enhance community engagement and transparency. 

The new services align with the ministry’s digital transformation strategy under Vision 2030, enhancing secure and innovative access to government services while fostering technological advancement in the Kingdom. 

These initiatives are part of the ministry’s broader digital transformation efforts, which have automated more than 1,000 services and processes, benefiting over 32 million users, according to the ministry. 

Digital Saudi showcases Kingdom’s tech advancements 

Digital Saudi, the Kingdom’s premier international platform for highlighting digital achievements, kicked off alongside LEAP 2025. 

Serving as a unified stage for Saudi Arabia’s digital transformation journey, Digital Saudi allows government entities to showcase their progress in e-government services, share success stories, and align with global best practices. It also educates the public on how to benefit from digital services. 

The platform further promotes the adoption of cutting-edge technologies, reinforcing Saudi Arabia’s position as a leading digital innovation hub in line with Vision 2030. 


Closing Bell: Saudi main index closes in green at 11,760

Updated 20 March 2025
Follow

Closing Bell: Saudi main index closes in green at 11,760

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 50.89 points, or 0.43 percent, to close at 11,760.32.

The total trading turnover of the benchmark index was SR5.89 billion ($1.57 billion), as 123 of the listed stocks advanced, while 109 retreated.   

The MSCI Tadawul Index increased by 6.13 points, or 0.41 percent, to close at 1,490.20.

The Kingdom’s parallel market Nomu dipped, losing 162.11 points, or 0.53 percent, to close at 30,521.53. This comes as 43 of the listed stocks advanced while 31 retreated.

The best-performing stock was Rabigh Refining and Petrochemical Co., with its share price surging by 9.87 percent to SR7.68.

Other top performers included Retal Urban Development Co., which saw its share price rise by 4.96 percent to SR16.50, and Ades Holding Co., which saw a 4.38 percent increase to SR16.70.

The worst performer of the day was Sinad Holding Co., whose share price fell by 6.91 percent to SR12.40.

Gulf General Cooperative Insurance Co. and SICO Saudi REIT Fund also saw declines, with their shares dropping by 6.19 percent and 5.18 percent to SR9.55 and SR3.66, respectively.

On the announcements front, Amwaj International Co. announced its financial results for 2024, with net profits reaching SR6.3 million, down by 60.1 percent compared to the previous year.

In a statement on Tadawul, the company attributed the decrease to restructuring inventory and marketing mix to accommodate new technology, which has a higher demand level and profit margin than before. 

“The addition of new products will positively impact sales and results for 2025 and will boost cash flow,” the statement said.

In another announcement, Gulf General Cooperative Insurance Co. revealed its annual financial results for 2024.

The company’s insurance revenues in 2024 reached SR414.3 million, up from SR315.6 million in the previous year, marking a 31.2 percent surge. 

This was principally driven by business growth and an increase in the motor line of business, according to a statement by the firm.

In today’s trading session, the group’s shares traded 6.19 percent lower on the main market to close at SR9.55.

Saudi Printing and Packaging Co. also announced its annual financial results for last year.

The company’s net loss surged to SR219.4 million from SR132.3 million in the previous year due to establishing a provision for credit losses in trade receivables and recording impairment in fixed assets, inventory, and goodwill.

In Thursday’s session, the firm’s shares traded 2.43 percent lower on the main market to close at SR10.42.

On another note, Saudi Industrial Investment Group has announced that its board of directors has recommended a share buyback of up to 11 million ordinary shares, subject to approval by the Extraordinary General Assembly. 

In a statement on Tadawul, the group said that the buyback aims to hold 10 million shares as treasury while allocating 1 million shares to the company’s long-term employee incentives program. 

The repurchase will be financed through internal resources, and the acquired shares will not carry voting rights in General Assembly meetings.

SIIG will comply with regulatory solvency requirements, with a solvency report from external auditors to be included in the EGA approval process.

In today’s trading session, SIIG’s shares traded 1.72 percent higher on the main market to close at SR15.36.


Saudi Aramco unveils direct air capture tech to reduce emissions

Updated 20 March 2025
Follow

Saudi Aramco unveils direct air capture tech to reduce emissions

JEDDAH: Saudi Aramco has unveiled the Kingdom’s first direct air capture test unit, marking a significant milestone in its mission to reduce emissions and advance carbon capture technology for a sustainable future.

The unit is capable of removing 12 tonnes of carbon dioxide from the atmosphere each year, according to an official statement from Aramco.

As the world’s leading integrated energy and chemicals company, Aramco emphasized that the pilot plant, developed in partnership with Siemens Energy, represents a crucial step in enhancing DAC capabilities.

Ali A. Al-Meshari, Aramco’s senior vice president of technology oversight and coordination, highlighted that direct carbon dioxide capture technologies will play a pivotal role in mitigating greenhouse gas emissions, particularly in industries that are difficult to decarbonize.

“The test facility launched by Aramco is a key step in our efforts to scale up viable DAC systems, for deployment in the Kingdom of Saudi Arabia and beyond. In addition to helping address emissions, the CO2 extracted through this process can in turn be used to produce more sustainable chemicals and fuels.” Al-Meshari said.

The development is in line with Saudi Arabia’s commitment to achieving net-zero emissions by 2060, following a circular carbon economy approach that emphasizes reducing, reusing, recycling, and removing carbon.

This initiative also supports the Saudi Green Initiative, which aims to reduce carbon emissions by 278 million tonnes annually by 2030 and transition 50 percent of the country’s energy sources to renewables.

The project reflects Aramco’s strong commitment to carbon capture, a critical component of its goal to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.

Aramco plans to use the new facility as a testing ground for next-generation CO2 capture materials specifically designed for Saudi Arabia’s unique climate. Additionally, the company aims to drive down costs, promoting the quicker adoption of DAC technologies in the region.

As part of its circular carbon economy strategy, Aramco is exploring methods for capturing CO2 both at emission sources and directly from the atmosphere, incorporating cutting-edge technological solutions, as stated in the company’s announcement.

In partnership with Siemens Energy, Aramco intends to scale up the technology and lay the groundwork for large-scale DAC facilities in the future.

Furthermore, the DAC test facility launch comes shortly after Aramco, along with its partners Linde and SLB, signed a shareholders’ agreement to develop a carbon capture and storage hub in Jubail. Phase one of the hub will have the capacity to capture 9 million tonnes of CO2 from three Aramco gas plants and other industrial sources.

In October 2023, Saudi Aramco announced its collaboration with major international companies to develop emissions reduction solutions, including lower-carbon hydrogen, direct air capture of CO2, and an innovative approach to CO2 storage.


Saudi Arabia’s US Treasury holdings see $10.6bn adjustment

Updated 20 March 2025
Follow

Saudi Arabia’s US Treasury holdings see $10.6bn adjustment

RIYADH: Saudi Arabia’s holdings of US Treasury securities stood at $126.9 billion in January, reflecting a $10.6 billion decrease from December, according to the latest US Treasury data. 

This marks a 7.71 percent month-on-month decline.

The change could reflect market fluctuations or potential portfolio rebalancing as the Kingdom navigates global economic conditions.

Official data showed that Saudi Arabia retained its 17th position among the largest holders of US Treasury securities in January. It remains the only Gulf Cooperation Council country to rank among the top 20 holders. 

In a press release, the US Department of the Treasury said: “The sum total in January of all net foreign acquisitions of long-term securities, short-term US securities, and banking flows was a net TIC (Treasury International Capital) outflow of $48.8 billion. Of this, net foreign private outflows were $74.8 billion, and net foreign official inflows were $26.0 billion.” 

The Kingdom’s holdings rose 1.4 percent in December compared to November, the report noted. 

Saudi Arabia’s portfolio was split between $105.3 billion in long-term bonds — accounting for 83 percent of the total — and $21.6 billion in short-term bonds, representing 17 percent. 

The press release noted that foreign residents increased their holdings of long-term US securities by $200 million, with private investors buying $59.2 billion, while foreign official institutions recorded net sales of $59 billion.

US residents also increased their holdings of long-term foreign securities, with net purchases totaling $45.4 billion. 

Meanwhile, foreign residents boosted their US Treasury bill holdings by $32.3 billion, contributing to a $53.9 billion rise in total dollar-denominated short-term US securities. 

Conversely, banks’ net dollar-denominated liabilities to foreign residents dropped by $57.5 billion. 

Top holders of US Treasury bonds 

Japan remained the largest investor in US Treasury securities in January, with holdings totaling $1.07 trillion, a 1.9 percent increase from December. 

China ranked second with $760.8 billion in holdings, followed by the UK at $740.2 billion. Luxembourg and the Cayman Islands were ranked fourth and fifth on the list, with treasury holdings amounting to $409.9 billion and $404.5 billion. 

Belgium secured the sixth spot with holdings worth $377.7 billion, closely followed by Canada with portfolios of $350.8 billion. 

France came in eighth with treasury reserves worth $335.4 billion, followed by Ireland and Switzerland, with assets amounting to $329.7 billion and $301.1 billion, respectively. Taiwan was ranked 11th on the list, with treasury holdings worth $290.4 billion. 

Hong Kong occupied the 12th spot with assets amounting to $255.9 billion, followed by Singapore and India, with holdings worth $247.6 billion and $225.7 billion, respectively. 

Brazil held US treasury holdings worth $199.1 billion by the end of January. Norway followed with its holdings standing at $173.1 billion. 


2.5m Syrians in Saudi Arabia to benefit from Dammam-Damascus flights

Updated 20 March 2025
Follow

2.5m Syrians in Saudi Arabia to benefit from Dammam-Damascus flights

JEDDAH: Over 2.5 million Syrian residents in Saudi Arabia will benefit from direct flights between Dammam and Damascus, reconnecting families and enhancing transport between the two countries.

Routes between the two cities resumed on March 19 after a 13-year hiatus, with a Syrian Air plane departing King Fahd International Airport in Dammam for Damascus.

The morning flight complements the direct service from the Kingdom’s three major cities to Syria after Syrian Air resumed operations at Saudi airports last year.

Passenger flights between the two countries were halted in 2012 when Riyadh severed ties with Damascus over Bashar Assad’s crackdown on anti-government protesters at the start of the country’s civil war.

Services between Syria and the Kingdom resumed temporarily in May for pilgrims participating in the annual Hajj pilgrimage. The first group of 270 Syrian travelers arrived in Jeddah on May 28, just a few days after Saudi Arabia appointed Faisal bin Saud Al-Mujfel as its ambassador to Syria.

Commercial flights between Saudi Arabia and Syria resumed in July following a 12-year freeze amid improving relations. A Syrian Air plane carrying 170 passengers from Damascus landed in Riyadh, marking the return of regular services. 

This was followed by the reinstatement of flights between Damascus and King Abdulaziz International Airport in Jeddah in November. 

Mohammed Ayman Soussan, Syria’s ambassador to the Kingdom, who took office in Riyadh in January 2024, said the two countries had agreed to operate one round-trip flight per week between the two capitals.

After the diplomatic gap, Saudi Arabia and Syria agreed to resume consular services in April 2023 and restored full relations in May 2023. 

Global flights resumed at Damascus International Airport in January for the first time since the ouster of President Bashar Assad last month.

Saudi Arabia has sent relief planes to Syria following the fall of the former president to assist with the ongoing crisis. These humanitarian efforts, organized by the King Salman Humanitarian Aid and Relief Center, also known as KSrelief, have delivered essential supplies, including food, shelter, and medical aid, to help the Syrian people cope with their challenging circumstances.

Additional flights to Syrian destinations are expected soon, following the reopening of Aleppo International Airport — the country’s second major airport — after nearly three months of closure.

The airport was closed in November during the offensive by rebel groups against the regime of Bashar Assad in early December.


UAE’s ADQ, Energy Capital partners to launch $25bn US venture

Updated 20 March 2025
Follow

UAE’s ADQ, Energy Capital partners to launch $25bn US venture

RIYADH: Abu Dhabi Developmental Holding Co., a sovereign investment entity from the UAE, and Energy Capital Partners are joining forces to establish a $25 billion energy partnership aimed at meeting power needs across 25 gigawatts of US-based projects.

The collaboration will see the UAE-based firm partner with the largest private owner of power generation and renewable energy in the US in a 50-50 venture.

This partnership will focus on developing new power generation and energy infrastructure tailored to support data centers, hyperscale cloud companies, and other energy-intensive industries.

The combined initial capital contribution from both partners is expected to reach $5 billion, according to a report from the Emirates News Agency or WAM.

A portion of the funds may also be directed toward investment opportunities in select international markets.

This strategic move is aligned with recent findings from the International Energy Agency, which forecasts the world’s electricity consumption to increase at its fastest rate in years. The surge is driven, in part, by rising demand from data centers and industrial electrification. In the US, electricity demand is expected to rise by an amount equivalent to California’s current power consumption over the next three years.

The partnership also supports predictions that global power demand from data centers will increase by 50 percent by 2027 and may grow by as much as 165 percent by 2030. This surge is largely driven by the expansion of artificial intelligence and high-density data centers.

The US Department of Energy further reports that data center load growth has tripled over the past decade and is expected to double or triple again by 2028.

In a statement, UAE Investment Minister Mohamed Hassan Al-Suwaidi, who also serves as managing director and group CEO of ADQ, emphasized the strategic importance of this collaboration. He stated: “The rapid acceleration of AI and its widespread adoption presents significant opportunities to address the growing power and infrastructure needs of data centers and hyperscalers. Meeting these power demands poses evolving challenges for governments worldwide to ensure a secure, stable, and commercially competitive electricity supply.”

“As an active investor with a strong focus on critical infrastructure and a proven ability to build long-term partnerships, we are well-positioned to address these shifting dynamics. Our partnership with ECP enables us to invest meaningfully in power generation and related infrastructure assets that will meet the growing demand for electricity, support industry progress, and help future-proof economies,” Al-Suwaidi added.

The statement further highlighted the critical need for reliable and consistent power in high-growth sectors, underscoring the necessity of nearby captive power plants to meet these demands. The partnership is designed to address these long-term needs, focusing on greenfield developments, new projects, and expansion opportunities, positioning it as a leader in power generation for the expanding US economy.

Doug Kimmelman, founder and executive chairman of ECP, remarked: “We are honored to collaborate with ADQ to provide the electricity resources required by the rapidly expanding AI and data center sector. The build-out of new power generation resources in the U.S. will necessitate significant, patient capital with a long-term investment horizon.”