OneWeb NEOM JV becomes member of Digital Cooperation Organization  

OneWeb NEOM JV becomes member of Digital Cooperation Organization  
OneWeb NEOM – a joint venture with the low earth orbit satellite connectivity company OneWeb – has been included as an Observer Member of the Digital Cooperation Organization. (Shutterstock)
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Updated 06 April 2023
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OneWeb NEOM JV becomes member of Digital Cooperation Organization  

OneWeb NEOM JV becomes member of Digital Cooperation Organization  

RIYADH: NEOM’s satellite company has joined a global multilateral body as it looks to play a part in accelerating the inclusive growth of the digital economy in the region.  

OneWeb NEOM – a joint venture with the low earth orbit satellite connectivity company OneWeb – has been included as an Observer Member of the Digital Cooperation Organization, which includes 13 member states representing a population of over 600 million.  

OneWeb's membership in the DCO will allow it to learn about and share insights into the initiatives the global body is launching throughout its member nations, including Saudi Arabia, Bahrain, Jordan, Morocco, and Pakistan, the company said in a press release.   

“OneWeb has a shared vision with the DCO and its esteemed leadership to provide sustainable and inclusive connectivity for those hardest to reach,” said Latih Hamad, CEO of OneWeb NEOM JV. 

Through membership of the DCO, he said OneWeb will work with member states and other partners to leverage their low Earth orbit constellation to help bridge the digital divide across the DCO member states. 

This newest MENA achievement for OneWeb demonstrates the region's rising need for connectivity, as well as its vision and skills to promote digital transformation via a robust partnership with local infrastructure and service providers.  

“This agreement is another example of OneWeb’s collaborative approach to ensure even the remotest communities, individuals and economies can realize their full potential,” Latih continued.  

OneWeb is on schedule to launch its coverage solutions in the area and throughout the world in 2023.  

“Without connectivity, it is almost impossible for nations to create and leverage inclusive digital economies that benefit all. Low earth orbit constellations can deliver high-performance satellite connectivity services across underserviced areas and will play an important role in overcoming the connectivity gap,” Deemah AlYahya, secretary-general of the DCO said.  

In October 2021, the OneWeb NEOM JV was founded for $200 million, to offer high-speed satellite communication to NEOM, Saudi Arabia, the entire Middle East, and neighboring countries. 


Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

Johnson & Johnson MedTech begins direct operations in Saudi Arabia 
Updated 9 min 2 sec ago
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Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

Johnson & Johnson MedTech begins direct operations in Saudi Arabia 

RIYADH: Saudi healthcare is poised to benefit from advanced medical interventions after Johnson & Johnson’s technology firm, J&J MedTech KSA, announced the launching of its direct operations in the Kingdom.  

The company provides high-tech medical and surgical equipment and aims to bring customers closer to a more streamlined experience, according to a statement.   

This move not only aligns with the firm’s commitment to enhancing medical interventions and improving clinical outcomes but also reflects the company’s ongoing investment in the future of Saudi healthcare, it added.   

Marzena Kulis, managing director of Johnson & Johnson MedTech for Middle East & Africa, said: “We remain deeply vested in Saudi Arabia and in contributing to the Vision 2030 to support in developing the healthcare sector, driving economic growth, nurturing local talent, and fostering innovation.”    

She added: “As an entity, Johnson & Johnson has been present in Saudi Arabia for nearly 40 years, putting the needs of patients, families, physicians, and nurses first, and functioning as advocates for the health of the Saudi community.”   

The senior executive added that as the company transitions into this new direct model, its esteemed partners will have fewer obstacles in providing the best care for their patients.

Moreover, Trad Al-Khelaiwi general manager of J&J MedTech KSA, highlighted: “As a company that is dedicated to fostering local talent, our direct operations are also aimed at creating more opportunities within the Kingdom and supporting the government’s Saudization efforts.”

He added: “In fact, since the start of the project, we’ve made 76 new hires — with our priority and majority being KSA nationals.” 

Furthermore, Al-Khelaiwi emphasized that this transformative shift would bring the customers closer to Johnson & Johnson’s quality standards and help develop the local healthcare market with international know-how.

“By taking this bold step, we are not only embracing the health goals of Vision 2030 and aligning with the National Health Transformation Program but also spotlighting the immense potential of local talent in driving innovation and progress,” Transformation Director at Johnson & Johnson MedTech Peter Lane underscored. 

In November 2022, Johnson & Johnson announced providing digital solutions that will shorten the time patients spend in hospitals.  

According to Marzena Kulis, managing director of Johnson & Johnson MedTech Middle East, the move was crucial in countries with lower bed capacity.  

“The digital solutions that we currently offer help to shorten the time of patients’ stay, so the capacity can absorb more patients, especially in the geographies where capacity is limited,” Kulis said in an exclusive interview with Arab News at the time.


Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister
Updated 27 February 2024
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Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

Demand for fossil fuels not likely to diminish anytime soon: Saudi energy minister

 

RIYADH: Saudi Arabia aspires to become one of the largest producers and exporters of clean energy, said Energy Minister Prince Abdulaziz bin Salman.

In an interview with the quarterly bulletin issued by the Saudi Association for Energy Economics, the minister said the Kingdom is capable of producing green and clean hydrogen at competitive prices.

Prince Abdulaziz said the Kingdom is focussing on all energy sources including solar, wind and green hydrogen as well as nuclear and geothermal.

This will help the Kingdom to reduce the consumption of liquid fuels in generating electricity and reaching the optimal energy mix, he added.

The minister cited the establishment of the largest green hydrogen production plant in NEOM as an example. The plant will have an annual production capacity of 250,000 tonnes by 2026.

Talking about the fluctuations in the oil market, he said the Organization of the Petroleum Exporting Countries has mechanisms in place to deal with global crude market challenges.

Despite highlighting Saudi Arabia’s energy transition plans, Prince Abdulaziz said the need for fossil fuels, especially oil and gas, will continue for decades as also indicated by several industry reports.

The minister added that Saudi Arabia is working to reduce carbon emissions, and that it has a program to replace liquid fuels.

He explained that the program aims to run industrial facilities to rely on natural gas or alternative fuels as well as building renewable energy sources.

Furthermore, Prince Abdulaziz highlighted how Saudi Arabia has quadrupled its current renewable energy capacity from 700 megawatts to 2,800 MW by the end of 2023, with more than 800 MW of renewable energy sources still under implementation and about 1,300 MW in various stages of development. On top of that, the Kingdom plans to produce 200 additional MW this year.

The energy minister also revealed that work is underway to build one of the largest projects to capture, transport, and store carbon dioxide with an annual capacity of up to 9 million tonnes by 2030 and 44 million tons annually by 2035.

He reiterated the Kingdom’s goal to reduce emissions to 278 million tonnes annually by 2030.


Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602
Updated 6 min 55 sec ago
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Closing Bell: Saudi main index rebounds to close at 12,602

Closing Bell: Saudi main index rebounds to close at 12,602

RIYADH: Saudi Arabia’s Tadawul All Share Index bounced back on Tuesday after recording declines on two days.

The benchmark index gained 69.79 points to close at 12,601.55 with an overall trading value of SR7.31 billion ($1.95 billion), with 169 stocks advancing and 52 declining. 

The Kingdom’s parallel market, Nomu, also gained 661.67 points to close at 26,254.28 and the MSCI Tadawul Index also edged up by 0.68 percent to 1,627.71. 

The best-performing stock of the day was Middle East Pharmaceutical Industries Co., also known as Avalon Pharma, which debuted on the main market on Tuesday. The company’s share price soared by 30 percent to SR106.60. 

Other top performers were Saudi Steel Pipe Co. and Batic Investments and Logistics Co., whose share prices surged by 9.93 percent and 9.87 percent, respectively. 

The worst performer of the day was Saudi Arabian Amiantit Co., as its share price slipped by 5.24 percent to SR29.85. 

On the announcements front, Arabian Centers Co., also known as Cenomi Centers, said that its board of directors approved issuing dollar-denominated sukuk under its international sukuk program. 

In a Tadawul statement, Cenomi Centers revealed that the amount and the terms of offerings will be announced later, depending on the market conditions. 

The lifestyle center operator added that the sukuk issuance is subject to the approval of the relevant regulatory authorities. 

Meanwhile, National Medical Care Co. revealed that it witnessed a net profit rise of 42 percent in 2023 to SR240.9 million compared to the previous year. 

The medical service provider said the rise in net profit was driven by higher revenue, gross profit, and interest income, along with lower sales costs and zakat charges. 

National Medical Care Co. added that the net profit for the fourth quarter of 2023 also witnessed a surge of 15 percent to SR63.5 million compared to the same period in 2022. 

Saudi Basic Industries Corp. also revealed its financial results for 2023 on Tuesday. 

The company, also known as SABIC, reported a net loss of SR2.58 billion in 2023, compared to a net profit of SR16.5 billion in 2022. 

In a statement to Tadawul, the company attributed the accumulation of losses to a decline in revenue due to a decrease in average selling prices and sales volumes. 


Aramco signs procurement agreements worth $6bn to enhance local supply chain

Aramco signs procurement agreements worth $6bn to enhance local supply chain
Updated 27 February 2024
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Aramco signs procurement agreements worth $6bn to enhance local supply chain

Aramco signs procurement agreements worth $6bn to enhance local supply chain

RIYADH: Saudi Aramco’s domestic supply chain is poised for further improvement as it signed procurement agreements worth $6 billion with suppliers in the Kingdom. 

According to a press statement, these 40 procurement agreements were inked as a part of the company’s strategic localization program and are expected to strengthen the firm’s supply chain ecosystem and contribute to the development of the energy services sector in Saudi Arabia. 

The deals will also provide suppliers with long-term demand visibility, enabling them to capture future growth and advance localization efforts.

Wail Al-Jaafari, executive vice president of technical services at Saudi Aramco, said: “The 40 new agreements signed today are expected to contribute to the domestic value chain and further enhance the ecosystem that Aramco is helping to build.” 

Moreover, these procurement agreements will also contribute to achieving the objectives of Aramco’s iktva program, an initiative to drive the growth of a vibrant economy in the Kingdom and create new opportunities for Saudi nationals.

These new corporate deals span the supply of a range of products comprising strategic commodities, such as instrumentation and electrical and drilling equipment. 

“These agreements move us toward a more prosperous, diverse and resilient supply chain, which will help ensure business continuity. They also represent a key milestone on our iktva journey and provide our partners an opportunity to benefit from a dynamic and increasingly diversified operating environment,” added Al-Jaafari. 

Additionally, Saudi Aramco signed two memorandum of understanding with its strategic partners to collaborate on localization and supply chain development. 

Earlier in February, speaking at the International Petroleum Technology Conference in Dhahran, Amin Nasser, CEO of Saudi Aramco, said that the company is very active in its localization efforts. 

“We hired more than 5,000 people, mostly Saudis, but also from 60 nationalities,” said Nasser.

He also added that Aramco has the full capability to grow in any sector to create profitable companies.

In January, a report released by strategic consulting firm Brand Finance revealed that Saudi Aramco has retained its position as the most valuable company in the Middle East region, with a value amounting to $41.6 billion.


Saudi investment firm acquires startup platform VeFund  

Saudi investment firm acquires startup platform VeFund  
Updated 27 February 2024
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Saudi investment firm acquires startup platform VeFund  

Saudi investment firm acquires startup platform VeFund  

RIYADH: The Saudi startup ecosystem is set to expand further with the investment fund CoreVision acquiring VeFund, infusing artificial intelligence technologies for enhanced venture evaluation, innovation, and strategic growth. 

The acquisition of VeFund, a regional platform for venture evaluation and investor connections, represents a significant step in CoreVision’s strategic growth, enhancing its portfolio with advanced AI-driven technologies. 

The Saudi investment firm plans to use VeFund’s AI technology to support startups in navigating competitive environments.  

Following the acquisition, CoreVision CEO Faisal Al-Abdulsalam will lead VeFund as its chief executive. 

Al-Abdulsalam’s extensive experience and portfolio of over 80 investments in various sectors are set to bring a new strategy of leadership and vision to VeFund, the company said.   

“We at CoreVision are not just investors, we see ourselves as ecosystem builders. As such, our vision is to transform VeFund into a secondary market for startups, offering a platform for investors to trade safe notes, which is essential in contributing to the vibrancy of the startup community here in Saudi Arabia,” said Al-Abdulsalam.   

Launched in 2023 by Mohamed Gaber, an AI specialist and serial entrepreneur, along with his co-founder Ahmed Magdy, VeFund’s intelligent evaluator provides a suite of tools, including an AI Survivability Index, valuation calculators, and extensive portfolio management solutions. 

“I am excited about the future of VeFund and believe strongly that this transition will drive VeFund’s mission forward, fostering an environment of innovation and success for startups across the Middle East,” Gaber said.  

VeFund currently has over 1,400 startups registered on its platform and has a database of more than 400 angel investors and investments funds spanning across Saudi Arabia, the UAE, Egypt, and Pakistan.