RIYADH, 22 November 2005 — Last week, during his first visit to Saudi Arabia, Intel Corporation Chairman Dr. Craig Barrett commended the country for making strides to diversify the economy through technology.
“The expansion of information and communication technology (ICT) is a high priority for the government,” said Barrett.
According to Barrett, the government’s ICT plan, a centerpiece of national policy for the next five years, spans all of Saudi Arabia’s traditional sectors, including health care, community development, governance and education, which will receive the largest portion of the 2006 budget. The country, Barrett noted, is committed to the acceleration of IT usage to deliver benefits of technology to citizens and businesses.
The ICT plan and other technology-related initiatives have contributed to Saudi Arabia’s IT sector being one of the largest and fastest growing in the Middle East. “This is investing in ICT as the next natural resource,” said Barrett.
During the press conference held last Wednesday, Barrett mentioned plans for a High Performance Computing Center that Intel will set up at King Fahd University of Petroleum and Minerals (KFUPM), a WiMAX implementation for the city of Riyadh and an undertaking to provide wireless services for one of the major Saudi airports. Details of all these activities will be made available soon.
The emerging global economy and interest in IT are helping chart a course for future growth in Saudi Arabia. Barrett cited a July report in the newspaper Al-Bayan that puts Saudi Arabia’s investments in the IT sector today at SR20 billion ($5.3 billion). The figure is expected to grow to SR68 billion ($18.1 billion) by 2035.
Intel will be a part of this growth as Barrett announced the establishment of a $50 million venture capital fund to invest in technology companies developing innovative hardware, software and services in the region covering the Middle East and Turkey. This fund will be in addition to an independent $100 million venture capital investment company to invest in technology companies located in, or having a connection with, Saudi Arabia, which is to be established by Intel Capital and the Saudi Arabian General Investment Authority (SAGIA).
“The $50 million Intel Capital Middle East and Turkey Fund will help stimulate technological innovation and the continued growth of the IT industry in this emerging region,” said Arvind Sodhani, president of Intel Capital, Intel’s venture investment program. “We will invest in companies to accelerate technology adoption locally and foster development of unique and innovative technologies and content with potential for regional distribution.”
He continued, “Intel Capital has been working in the region for some time and sees a strong demand for technology in broadband and mobile services, enterprise solutions, digital health, and consumer technologies. That demand, combined with a measurable increase in entrepreneurial activity and some of the world’s fastest growing economies, indicates that the time is right to begin investing in the region.”
The fund will invest in companies that complement Intel’s technology and platform initiatives, and seek to further build out the IT and Internet infrastructure in the region. With this fund, Intel Capital will focus on opportunities to invest in hardware, services (including broadband infrastructure and mobile wireless solutions using WiMAX technology), local content developers/providers, digital health solutions, IT service providers and software solutions.