Saudi Arabia ranks 2nd in global study of AI awareness

Saudi Arabia has a keen interest in artificial intelligence and has hosted global summits on the topic. (@globalaisummit)
Saudi Arabia has a keen interest in artificial intelligence and has hosted global summits on the topic. (@globalaisummit)
Short Url
Updated 06 April 2023
Follow

Saudi Arabia ranks 2nd in global study of AI awareness

Saudi Arabia has a keen interest in artificial intelligence and has hosted global summits on the topic. (@globalaisummit)
  • Findings made by Stanford University in 2023 Artificial Intelligence Index Report

RIYADH: Saudi Arabia ranks second globally for societal awareness of artificial intelligence, according to the 2023 Artificial Intelligence Index Report by Stanford University.

The study provides information for policymakers, researchers and industry professionals to better understand the current situation regarding artificial intelligence and possible future trends.

This year’s report suggests a high rate of confidence among Saudi citizens when dealing with AI products and services. The Kingdom ranked second globally, after China, in terms of people’s positivity and optimism toward the technology.

The survey covered several areas, the most important being the extent of “society’s knowledge of the benefits and value of AI products and services.”

Saudi Arabia ranked joint first with China on a question about the “positive impact of AI products and services on the lives of respondents in the survey during the next three to five years.”

It ranked second on the question of “whether AI products and services will make the lives of the respondents in the survey easier” and also when respondents were asked about their “knowledge of the benefits and value of AI products and services.”

Saudi Arabia has a keen interest in artificial intelligence. At the G20 Summit in Osaka in 2019, Crown Prince Mohammed bin Salman said: “We live in a time of scientific innovations, unprecedented technologies and unlimited growth prospects.

“If used optimally, these new technologies, such as artificial intelligence and the internet of things, can avoid many harms and bring huge benefits.”


Closing bell: Saudi main index closes lower at 11,040  

Closing bell: Saudi main index closes lower at 11,040  
Updated 01 October 2023
Follow

Closing bell: Saudi main index closes lower at 11,040  

Closing bell: Saudi main index closes lower at 11,040  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Sunday, slipping 15.79 points or 0.14 percent to finish at 11,040.17. The benchmark index saw a total trading turnover of SR4.08 billion ($1.08 billion) with 79 listed stocks advancing and 135 retreating. 

In contrast, the Kingdom’s parallel market Nomu inched up 8.33 points, or 0.04 percent, to close at 22,698.64, with 24 listed stocks advancing and 30 retreating. 

The MSCI Tadawul Index declined 0.55 points, or 0.04 percent, closing at 1,415.12. 

The best-performing stock of the day was Middle East Healthcare Co., with its share price surging 8.35 percent to SR59.70. Other top performers included Electrical Industries Co. and Development Works Food Co., with their share prices soaring 5.37 percent and 4.90 percent, respectively, to stand at SR2.16 and SR111.40. 

Development Works Food Co. and the Mediterranean and Gulf Insurance and Reinsurance Co. were also among the top performers of the day. 

The worst performer was Raydan Food Co., as its share price dropped 3.80 percent to SR26.60. Other decliners included National Agricultural Development Co. and Naseej International Trading Co., with their share prices dropping 3.05 percent and 2.63 percent, respectively, to SR46.05 and SR44.50. 

Fawaz Abdulaziz Alhokair Co. and Thimar Development Holding Co. were also among the poor performers of the day. 

Meanwhile, Alqemam for Computer Systems Co. was the top performer on Nomu, while Academy of Learning Co. was the worst performer. 

In announcements, Al-Babtain Power and Telecommunication Co. disclosed the results of the third extraordinary general assembly meeting, which included the approval of around a SR213 million increase in the firm’s capital.

The company’s capital has surged from SR426 million to an estimated SR639 million, and the number of shares has increased to 63 million from the previous 42 million. This capital increase aligns with the company’s plan to support its financial position and explore new investments in available untapped opportunities, according to a bourse filing. 

In another development, Saudi Awwal Bank announced its intention to offer first-tier capital sukuk denominated in riyals through private placement within the Kingdom. HSBC Saudi Arabia has been appointed as the organizer and distributor of the program, with the offering value to be determined based on market conditions at a later time. 


RSI secures $88m financing from Al Rajhi Bank for acquisition 

RSI secures $88m financing from Al Rajhi Bank for acquisition 
Updated 01 October 2023
Follow

RSI secures $88m financing from Al Rajhi Bank for acquisition 

RSI secures $88m financing from Al Rajhi Bank for acquisition 

RIYADH: Saudi modular building solution provider Red Sea International has sealed a SR330 million ($87.9 million) financing deal with Al Rajhi Bank. The arrangement includes a SR250 million loan to facilitate RSI’s acquisition of a 51 percent stake in the Fundamental Installation for Electric Work Co. Ltd., also known as First Fix. 

The agreement is valid until the completion of the acquisition process, with a repayment tenure of seven years, providing both RSI and Al Rajhi Bank with financial clarity, according to a bourse filing.  

Guarantees for the financing include a pledge of shares in RSI’s sister company and First Fix.  

RSI has also allocated project proceeds to cover the loan’s annual repayment, including interest, and has provided a promissory note under the agreement, backed by one of its sister companies, noted the filing. 

The deal involves related parties Al-Dabbagh Group, Tanmiah Commercial Group, and Petromin Corp. 

In June, RSI announced the acquisition of 51 percent of the share capital of First Fix through cash consideration. 

“RSI will gain a critical stream of electromechanical construction capability which are very crucial to every single client need,” said RSI CEO Khalid Fagih in a statement issued during the stake buyout.  

Established in 2014, First Fix is a Saudi construction firm with over 190 top projects, offering integrated design, engineering, and construction disciplines in mechanical, electrical, and plumbing. 

In another development, Al Rajhi Bank, in August, entered into an agreement with the National Center for Privatization to enhance public-private partnerships.  

The deal aims to create opportunities for local and international investors in privatization initiatives. It also involves market research, financial guidance, local and international marketing consultancy, events management, training programs, and knowledge development. 

The deal was signed by Hani Al-Saigh, vice president for strategic marketing and knowledge management at the NCP, and Hossam Al-Basrawi, general manager of corporate banking at Al Rajhi Bank. 


Saudi Arabia issues 136 industrial licenses in August 2023

Saudi Arabia issues 136 industrial licenses in August 2023
Updated 01 October 2023
Follow

Saudi Arabia issues 136 industrial licenses in August 2023

Saudi Arabia issues 136 industrial licenses in August 2023

RIYADH: Saudi Arabia’s economic activity gained momentum with the Ministry of Industry and Mineral Resources issuing 136 industrial licenses in August compared to 102 in July.

According to the Saudi Press Agency, the food product manufacturing sector received 29 permits, followed by the non-metallic mineral industry with 21.

Moreover, the rubber and plastics industry obtained 15 permits, and 12 licenses were issued in the paper production sector.

The SPA report added that the ministry issued 795 industrial licenses between January and August. The number of factories during this period reached 11,110, taking the total investments made by these firms to SR1.489 trillion ($400 billion).

The SPA report further noted that investment volume in August for new licenses stood at SR1.6 billion.

Small enterprises accounted for 83.09 percent of the total licenses issued in August, followed by medium enterprises with 16.18 percent and micro-enterprises with 0.74 percent.

The report added that national factories held the most significant chunk of the total licenses at 76.47 percent, followed by foreign establishments and joint-investment firms with 16.18 percent and 7.35 percent, respectively.

On the other hand, 87 factories started production in August, with an investment of SR1.5 billion. Of these plants, 79.31 percent were national factories, 12.64 were foreign establishments and 8.64 percent were joint investment firms.

Meanwhile, the ministry issued 36,293 certificates of origin in August, up from 34,926 in July.

The initiative is seen as a part of the ministry’s efforts to boost exports across various sectors.

A certificate of origin is a pivotal document in international trade, validating that the exported goods are on a nationality basis.


Banks in GCC benefiting from strong operating conditions: Fitch Ratings  

Banks in GCC benefiting from strong operating conditions: Fitch Ratings  
Updated 01 October 2023
Follow

Banks in GCC benefiting from strong operating conditions: Fitch Ratings  

Banks in GCC benefiting from strong operating conditions: Fitch Ratings  

RIYADH: Banks in the Gulf Cooperation Council are currently reaping the benefits of robust operating conditions, driven by factors such as high oil prices, contained inflation, and rising interest rates, according to Fitch Ratings.  

In its latest report, the US-based credit rating agency pointed out variations in bank performance across the GCC markets, with financial institutions in the UAE demonstrating signs of improvement compared to their counterparts. 

“We expect this improvement to be overall sustained, which, along with other solid financial metrics being maintained, could lead to positive rating actions on some UAE banks’ Viability Ratings,” said Fitch Ratings.  

The report highlights that banks in Saudi Arabia, Qatar, and the UAE are well-positioned to benefit from rising interest rates, primarily due to the swift repricing of loan books and substantial funding from low-cost current and savings accounts. 

UAE banks, in particular, have seen significant gains from rising rates, with average net interest margins increasing by 100 base points in the first half of 2023 compared to 2020.  

NIMs in the UAE are anticipated to stabilize in the second half of 2023 before experiencing a slight dip in 2024, the report added. 

Conversely, Qatari banks have experienced only modest NIM improvements due to weak credit demand and ongoing public sector repayment of overdraft facilities. 

Strong operating conditions have contributed to robust asset quality metrics in the UAE and Saudi Arabia during the first half of 2023.  

“UAE mortgage portfolios could be pressured given their high proportion of variable-rate loans, but the rise in property prices should keep losses-given-default close to nil,” added Fitch.   

Saudi banks are projected to outpace the GCC average in financing growth for both 2023 and 2024, driven by increased corporate credit demand and persistent high interest rates. 

With oil prices expected to average $80 per barrel in 2023 and $75 per barrel in 2024, the region’s banks can anticipate continued support for their operating conditions, as per the report. 


Saudi endowment investment funds exceed $133m in net assets 

Saudi endowment investment funds exceed $133m in net assets 
Updated 01 October 2023
Follow

Saudi endowment investment funds exceed $133m in net assets 

Saudi endowment investment funds exceed $133m in net assets 

RIYADH: Saudi Arabia’s endowment investment funds have experienced significant growth, with the number of licensed funds increasing by 13 in 2023, reaching a total of 24, as reported by the General Authority of Awqaf.    

In a newly released report, the authority revealed that this expansion has pushed the net assets of endowment investment funds in the Kingdom beyond the SR500 million ($133 million) milestone for the current year.    

This aligns with the government’s strategic objectives to advance the financial sector and streamline the licensing processes for various products.     

Furthermore, this growth is expected to encourage individuals and entities to further expand their involvement in various areas of endowment investment across the Kingdom.  

Endowment funds feature precise mechanisms that enable them to contribute to sustainable development and implement best practices by participating in various projects that cater to society’s needs. 

Moreover, by presenting work programs that prioritize achieving the highest return, endowed amounts will effectively address social and developmental needs. 

Among the most prominent fund managers, Al Rajhi oversees 10 funds, including the Holy Quran Memorization Associations Fund, the Orphan Associations Fund, the Eastern Region Associations Fund, the Autism Associations Fund, and the Health Associations Fund. Alinma Investment also manages 10 funds, including the Wareef Endowment Fund and Bir Ariyadh Endowment Fund. 

In December, the authority signed an agreement with the Council of Non-governmental Organizations to launch five investment endowment funds worth SR186 million during the first quarter of 2023, as reported by the Saudi Press Agency.  

These funds aim to achieve financial sustainability for non-governmental organizations and enhance their developmental role. 

At that time, the SPA reported that Awqaf and the Capital Market Authority were in discussions about the operation of endowment funds and the challenges they face, including limited diversification of investments, often focused solely on the real estate sector, which increases risks. 

Established as a public authority, Awqaf seeks to enhance the role of endowments in economic and social development, as well as social solidarity.