Saudi Arabia’s AI adoption ignites technological advancement and economic growth

Special Saudi Arabia’s AI adoption ignites technological advancement and economic growth
Abdullah Al-Swaha, Saudi minister of communications and IT. (Supplied)
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Updated 02 May 2024
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Saudi Arabia’s AI adoption ignites technological advancement and economic growth

Saudi Arabia’s AI adoption ignites technological advancement and economic growth
  • Adoption of AI will help foster a knowledge-based economy and equip Saudi youth with skills for the digital age
  • Key initiatives, include the National Strategy for Data and AI, aim to establish Saudi Arabia as a global AI leader by 2030

RIYADH: As artificial intelligence gains global attention and becomes a buzzword, Saudi Arabia is positioned for accelerated adoption to enhance efficiency across its industries.

Over the years, AI has evolved into a transformative technology revolutionizing numerous industries and domains. Its development and adoption across sectors have spurred significant advancements, already reshaping how people live and work globally.

According to a recent report by the professional services firm PwC, the projected economic impact of AI in the Middle East by 2030 is $320 billion, with an estimated $135.2 billion attributed to Saudi Arabia.

The report also highlights an annual growth rate in AI contribution ranging between 20 percent and 34 percent across the region, with the UAE experiencing the fastest growth, followed by Saudi Arabia.

“Such growth and demand for AI demonstrated that the impact on industries can be substantial and wide-ranging both in Saudi Arabia and the wider region,” said Slava Bogdan, CEO & co-founder at Flowwow, to Arab News.

Flowwow, a global gifting marketplace, simplifies gift-giving and connects local brands with customers. It hosts over 14,000 local brands from 1,000 cities and operates in over 30 countries, including the UAE, Spain, the UK, and Brazil.

“Whether it’s hospitality, manufacturing, telecommunication, or business technologies, where Flowwow sits, I could say that AI solutions, firstly, could automate repetitive tasks, allowing employees to focus on more strategic and creative work, especially in data analysis, customer service, and marketing,” Bogdan said.

The CEO further explained how the firm’s marketers frequently utilize AI to target audiences, enhance creatives, or conduct competitive analysis, particularly in global markets like the Middle East and North Africa. This reduces decision-making time and allows for more strategic tasks that necessitate a tailored approach.

“Moreover, AI algorithms can analyze large amounts of data to identify patterns and trends, helping businesses make more informed decisions,” Bogdan explained.

“This attribute can lead to better forecasting, resource allocation, and risk management, especially in the financial sector, having had 25 percent of all regional AI investments,” he added.

Speaking to Arab News, Brahim Laaidi, partner at Bain & Co., emphasized that AI adoption in sectors like energy and healthcare aids “the Kingdom’s economic diversification and fosters a knowledge-based economy, enhancing efficiency and driving growth.”

Moreover, AI is recognized for enhancing customer experience and reducing costs for firms in various ways.

DID YOU KNOW?

• Saudi Arabia was one of the first nations to utilize data and artificial intelligence technologies to achieve its Vision 2030 goals.

• There are five prominent types of AI: machine learning, natural language processing, computer vision, speech recognition and robots.

• The Saudi Data and AI Authority has created AI ethics principles in accordance with the Kingdom’s commitment to human rights.

• SDAIA estimates SR412.5 billion ($109.96 billion) in global spending on AI by 2024 end.

“AI chatbots and virtual assistants provide 24/7 customer support, reducing costs. Multiple Saudi firms and banks use chatbots for customer service,” highlighted Laaidi.

He also illustrated how AI analyzes customer behavior to create personalized experiences, citing examples like Netflix and Spotify, which utilize AI to tailor content based on user preferences and listening habits.

Laaidi also highlighted how “AI facilitates segmentation based on behavior and profitability for targeted marketing. Coca-Cola utilizes AI for consumer segmentation.”

“In a nutshell, for most enterprises, the focus remains on leveraging narrow or vertical AI solutions to enhance specific business processes, improve customer experiences, or optimize operations,” he added.

According to Jad Haddad, head of Digital IMEA at management consulting firm Oliver Wyman, AI essentially democratizes access to intelligence, making it cheaper and more widely available.

This can generate significant efficiencies by augmenting employee capabilities, enabling them to complete tasks faster, and automating certain processes without human intervention.

Oliver Wyman estimates that up to 35 percent of tasks globally may be augmented or automated by AI in the next three years.

“In Saudi Arabia, considering the current economic structure, Oliver Wyman estimates that up to 17 percent of tasks may be affected within that time frame,” Haddad told Arab News.

AI projects and employment

It is evident that the Kingdom has been significantly investing in AI in recent years.

Key initiatives, according to Laaidi, include the National Strategy for Data and AI, aiming to establish Saudi Arabia as a global AI leader by 2030. Additionally, Neom, a planned smart city, is poised to leverage AI in urban planning and environmental management.

“The Saudi Data and Artificial Intelligence Authority was established in 2020 to regulate AI development, and Tonomous collaborates with global tech leaders to enhance the city’s projects,” he added.

Laaidi continued by stating that AI and Robotics Centers, formed through partnerships with universities and international entities, are advancing AI in the Kingdom. From a technology industry perspective, it offers diverse applications and significant benefits.

According to Cristina Carranza, global head of business development at GGTech Entertainment, AI stands as a powerful tool with vast potential to enhance operational efficiency across various domains.

“We use AI selectively, focusing on specific areas where it can augment human skills and improve processes,” Carranza told Arab News.

She gives examples of how AI algorithms are utilized to analyze player data and preferences, enabling them to tailor game experiences and enhance player engagement. “In addition, AI-driven predictive analytics help us anticipate market trends and make informed decisions.”

However, Carranza emphasized the importance of acknowledging that while AI is embraced as a tool for progress, there is a recognition of the necessity of human oversight and control.

“We believe in a symbiotic relationship between humans and AI, where the technology enhances our capabilities but is always subject to human direction and control,” she added,

New dimensions

From GGTech Entertainment’s perspective, AI opens up exciting new dimensions in gaming and entertainment.

Carranza revealed that one significant area involves the optimization of game design processes, where AI algorithms analyze player feedback and behavior data to inform the creation of more engaging and immersive gaming experiences.

“Additionally, AI-powered tools enhance player interaction through personalized recommendations and real-time assistance, fostering deeper engagement and loyalty,” she explained.

The global head further addressed how AI-driven analytics offer valuable insights into player behavior and market trends, empowering GGTech to make data-driven decisions and maintain a competitive edge in the industry.

Bridging skill gaps

The Kingdom’s journey to become an AI leader involves challenges encompassing ethical and legal aspects, data availability and quality, as well as skill gaps, infrastructure requirements, public trust, and the need for international collaborations.

“To navigate these dilemmas, the SDAIA and the National Data Management Office have been established to construct ethical guidelines and improve data governance,” Laaidi explained.

Similarly, the National Cybersecurity Authority continues to safeguard Saudi Arabia's digital infrastructure, including AI systems.

Laaidi emphasized Saudi Arabia’s prioritization of STEM education and training to bridge skill gaps, citing initiatives like the Prince Mohammed bin Salman College of Cyber Security aimed at fostering local talent in AI-related fields.

He highlighted the importance of focusing on STEM disciplines for developing a workforce equipped with the necessary skills for an AI-driven future.

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“Substantial investments are being made in infrastructure, with emphasis on high-performance computing and cloud computing capabilities to support AI development and deployment. Building public trust is also a key venture for the Kingdom,” the partner stressed.

In addition, the Kingdom seeks international collaborations with leading AI research entities worldwide to expedite AI capabilities. “By addressing these challenges strategically, Saudi Arabia aims to create a conducive environment for AI development and adoption,” he emphasized.

From a technological perspective, the adoption of AI can present challenges in navigating ethical considerations and ensuring human control.

“At GGTech, we recognize the importance of maintaining human oversight and ethical standards while leveraging AI technologies. To address this challenge, we prioritize transparency and accountability in our AI algorithms and processes, ensuring they are aligned with our values and ethical guidelines,” Carranza described.

She further added that they invest in ongoing training and education for team members to enhance their understanding of AI and its implications, enabling them to make informed decisions and mitigate potential risks.

Reskilling Saudi workforce    

Undoubtedly, marketers and creative leaders should prepare for the changes in their professional field resulting from AI adoption.

Bogdan explained that one of the crucial skills is the ability to ask AI the right questions and write clear prompts. He emphasized that it is necessary to understand, at least at a basic level, how AI algorithms work.

“At Flowwow, we acquaint employees with the different instruments to make AI a helpful assistant that allows us to analyze competitors’ websites, fact-check and edit texts, test tasks, and answers,” he continued.

The CEO highlighted that as the Kingdom invests resources to integrate AI into every sector, it creates more opportunities for entrepreneurs to establish their businesses and startups equipped with AI tools.

“Hence, apps and services developed with AI solutions will be on the edge. In this case, product managers and programmers should gain a thorough understanding of machine learning to create up-to-date apps,” Bogdan highlighted.

The CEO stressed that it will mostly be up to companies to invest in continuous learning and upskilling through educational short courses for their workers. “This investment is crucial to ensure that the workforce remains competitive and competent in leveraging advancements in AI effectively.”

Saudi Vision 2030  

AI is a driving force behind Saudi Arabia’s Vision 2030, fueling economic diversification, smart cities, and public service transformation.

According to Laaidi, “AI boosts innovation across non-oil sectors, enables intelligent urban planning in projects like NEOM, and promotes Industry 4.0 through automation and predictive maintenance.”

“AI also improves government services via chatbots, automation, and analytics. In healthcare, AI enhances medical imaging, drug discovery, and personalized medicine,” he highlighted.

On top of that, Laaidi emphasized how AI educational tools prepare the workforce and optimize resource allocation, while support for clean energy promotes sustainability.

“Vision 2030 powered by AI seamlessly connects economic domains, accelerating progress and innovation across the Kingdom,” he affirmed.

On another note, GGTech Entertainment's use of AI aligns with the goals of Saudi Vision 2030 by driving innovation, promoting economic diversification, and empowering Saudi youth with advanced skills and capabilities, according to the firm's global head.

“One way AI contributes to this vision is by enhancing gaming experiences and promoting the Kingdom as a global hub for entertainment and technology,” said Carranza.

By utilizing AI-powered tools for game design, player interaction, and analytics, GGTech Entertainment is delivering cutting-edge gaming experiences that showcase Saudi Arabia’s technological prowess and creativity to a global audience, she emphasized.

“In addition, the use of AI creates opportunities for job creation and economic growth in the Kingdom. As GGTech expands its AI capabilities, it is investing in the development of a skilled workforce with expertise in AI technologies and data analytics,” the company’s global head said.

She concluded by highlighting how this not only aligns with the goals of Saudi Vision 2030 to foster a knowledge-based economy but also equips Saudi youth with the skills they need to thrive in the digital age.


Oil Updates — crude climbs on supply worries, Trump tariffs check gains

Oil Updates — crude climbs on supply worries, Trump tariffs check gains
Updated 34 sec ago
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Oil Updates — crude climbs on supply worries, Trump tariffs check gains

Oil Updates — crude climbs on supply worries, Trump tariffs check gains

SINGAPORE: Oil prices extended gains on Tuesday amid concerns over Russian and Iranian oil supply and sanctions threats, despite worries that escalating trade tariffs could dampen global economic growth.

Brent crude futures were up 55 cents, or 0.72 percent, at $76.42 a barrel by 10:17 a.m. Saudi time, while US West Texas Intermediate crude rose 50 cents or 0.69 percent to $72.82.

Both contracts posted gains of near 2 percent in the prior session after three weekly losses in a row.

“It’s more financially driven and price mean aversion rather than fundamental. Brent went from over $80 per barrel (in mid-January) to $74 (last week) so its time to take the position again,” LSEG analyst Anh Pham said.

The rebound came amid signs of tightening supplies, ANZ analysts said in a research note.

ANZ analysts noted Russian oil production fell short of its OPEC+ quota in January, easing concerns of an oversupply. Output fell to 8.96 million barrels per day and is 16,000 bpd below its approved levels under the production agreement.

Shipping of Russian oil to China and India, the world’s major crude oil importers, has been significantly disrupted by US sanctions last month targeting tankers, producers and insurers.

Adding to supply jitters are US sanctions on networks shipping Iranian oil to China after President Donald Trump restored his “maximum pressure” on Iranian oil exports last week.

But countering the price gains was the latest tariff by Trump which could dampen global growth and energy demand.

Trump on Monday substantially raised tariffs on steel and aluminum imports to the US to 25 percent “without exceptions or exemptions” to aid the struggling industries that could increase the risk of a multi-front trade war.

The tariff will hit millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries.

Trump last week introduced 10 percent additional tariffs on China, for which Beijing retaliated with its own levies on US imports, including a 10 percent duty on crude.

Also weighing on crude demand, the US Federal Reserve will wait until the next quarter before cutting rates again, according to a majority of economists in a Reuters poll who previously expected a March cut.

The Fed faces the threat of rising inflation under Trump’s policies. Keeping rates at a higher level could limit economic growth, which would impact oil demand growth.

US crude oil and gasoline stockpiles were expected to have risen last week, while distillate inventories likely fell, a preliminary Reuters poll showed on Monday.

The poll was conducted ahead of weekly reports from industry group, the American Petroleum Institute, due at 12:30 a.m. Saudi time on Wednesday and an Energy Information Administration report due later that day.


Sustainable living should focus on comfort over beauty, says climate-focused architect 

Sustainable living should focus on comfort over beauty, says climate-focused architect 
Updated 39 min 23 sec ago
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Sustainable living should focus on comfort over beauty, says climate-focused architect 

Sustainable living should focus on comfort over beauty, says climate-focused architect 

RIYADH: Architects need to shift their focus toward comfortable, climate-friendly designs rather than reaching for the stars with often unsustainable skyscrapers, said Sarah El-Battouty, founder of ECOnsult at a conference in Riyadh. 

According to El-Battouty, who is also a UN Climate Change High-Level Champions global ambassador, buildings are the most used product on Earth, so modern designs must reflect modern needs. 

“Everything is moving forward — machines, products, food, communication — except buildings,” she said.   

ECOnsult, an Egypt-based architecture company specializing in green building and environmental strategy, developed the People’s Brief, which examines the essential components people need in daily living. At the top of that list is comfort. 

“We’re no longer building things to impress. The future is to get the one target that is very difficult to achieve,” she said. 

“I know it sounds simplistic, but it’s really difficult to get people to sleep well, to feel firmer comfort when they’re not too cold or too hot, to predict what is happening in the near future and accommodate the changes in seasonality, and fit all of that into an affordable, accessible, scalable, repeatable building.”    

The next step, she said, is integrating sustainable development goals into people’s homes and using that foundation to design climate-resilient communities. 

Two years ago, ECOnsult introduced the Green Guidelines document, a set of standards for green architecture in rural, low-income communities.   

“No one is sitting and figuring out how they’re going to put these very advanced concepts and apply them to a completely different client… and whether these building technologies are actually scalable in rural communities.”  

El-Battouty emphasized the need for a direct connection between technology, forecasting, and accessible adaptation strategies, making them usable for everyone rather than a select few. 

Today, ECOnsult has developed the first World Green Building Council-certified small villages for green economies in Egypt. 

Five villages have been built so far, housing a total population of 500,000 in energy-, water-, and habitat-saving environments. 

By localizing goals and understanding the client, available technology at small scales has made a tremendous impact, El-Battouty said. 

ECOnsult has also built the first net-zero rural communities project in the Middle East and North Africa region: a mosque. 

Constructed from recycled brick and rammed earth and powered entirely by solar energy, the mosque’s architecture supports 90 percent water recycling, material reduction, construction waste recycling, and the use of local materials. 

Governments worldwide are committing to net-zero pledges, such as Saudi Arabia’s goal of achieving 50 percent renewable power by 2030 on its path to net-zero emissions by 2050. 

Developers in both the architectural and finance sectors are exploring green buildings and energy; however, “why does it have to begin with the most expensive, large-scale?” El-Battouty asked.  

“We are not there yet. We need to perfect this scale. 

“Anyone who works in mitigation or quality assurance can understand that small is beautiful because you can test it,” she said. 

In most of ECOnsult’s projects, they have achieved up to 10-degree cooling without mechanical assistance. 

With fresh air, adequate lighting control, stone, and strategic color usage, much can be accomplished affordably, El-Battouty noted. 

“We need to use technologies that partner in informing us: today is a very hot day, your building is not doing well, I will adjust.” 

Some of the company’s other projects include the Pavilion Café in Italy, a net-zero building constructed entirely from discarded refrigerator casings and waste food. 

Another project is a nursery/kindergarten in China, designed to combat outside air pollution by eliminating plastic casings, placing floor tiles on the ceiling, and ensuring an airtight structure.  

Royal Herbs Village is also the first carbon-neutral project in the Middle East and North Africa region. Located on a 4,200-sq.-meter plot in the Western Desert, where temperatures can reach up to 50 degrees Celsius, eight buildings have been constructed to accommodate 120 people in a complex that operates without energy-intensive air conditioning units. 

Other projects include a net-zero vocational school repurposed from an old structure using affordable local materials and a model for efficient tiny homes tailored to suit local climates. 

Rather than relying solely on advanced technology to solve the climate crisis, El-Battouty stressed that the real solution, with high market return and economic value, lies in catering to local communities. 

“We’re not innovators. Villages and people have been building for thousands of years, understanding exceptionally well what to do in the winter, what to do in drought. Otherwise, they wouldn’t have survived.  

“Our job is to integrate all of this so we don’t come out on one end, isolated in a much smaller market, and then clap for ourselves that we have succeeded in changing the way we are building.” 

A small company with only 20 employees, ECOnsult has been working closely with the Saudi government, particularly in relation to UNCCD COP16, as well as with the Scottish government at the Glasgow climate conferences, to introduce climate-friendly and people-centric architecture into modern buildings and city plans. 


Saudi Arabia, Argentina explore new investment opportunities

Saudi Arabia, Argentina explore new investment opportunities
Updated 11 February 2025
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Saudi Arabia, Argentina explore new investment opportunities

Saudi Arabia, Argentina explore new investment opportunities
  • Argentine Embassy, RCCI host seminar
  • Framework offers incentives, legal protections, stability measures to encourage large-scale investments

RIYADH: The Argentine Embassy in collaboration with the Riyadh Chamber of Commerce and Industry hosted a seminar at the UN World Tourism Organization’s regional office in Riyadh on Monday, bringing together senior government officials and business leaders from both nations to explore trade and investment opportunities.

The seminar was held on the sidelines of an official visit by Argentina’s Foreign Minister Gerardo Werthein and focused on the country’s newly launched investment framework — the New Legal Framework for Major Investments in Argentina, also known as RIGI — and opportunities available to Saudi companies.

The RIGI program, which offers the global investment community access to projects in key sectors of the Argentine economy, is designed to attract large-scale international investments by offering significant incentives across key sectors, including mining and energy, infrastructure and tourism, technology and advanced industries and manufacturing.

Delegates and audience at the seminar organized by Argentine Embassy. (AN photo by Rashid Hassan)

It provides regulatory stability, tax incentives, and long-term predictability for foreign investors, ensuring that businesses operating in Argentina can expand with confidence and access high-growth opportunities.

Daniel Gonzalez Casartelli, Argentina’s deputy minister of energy and mining, said at the seminar that the objectives of the investment incentive scheme were to develop the economy, increase competitiveness, boost exports, and generate employment.

He said the incentives on exchange rate included incremental free exports and unrestricted foreign exchange access for equity and debt repayments. On tax it offered accelerated depreciation; tax loss carryforward without expiration date; income tax decrease to 25 percent compared to a general rate of 35 percent; VAT exemption for capex; and tax on dividends reduced to 3.5 percent after seven years of joining the RIGI, with the general rate at 7 percent.

Facundo Vila, ambassador of Argentina with guests after the seminar in Riyadh. (AN photo by Rashid Hassan)

The incentives on customs include full exemption from export duties, starting in the third year; exemption from tariffs on capital goods imports; and tariff and import quota exemptions for the value chain of RIGI projects.

Companies that adhere to the RIGI will benefit from a 30-year stability period, and evaluation of RIGI applications is guaranteed within 45 business days.

The minimum investment amount is $200 million, and companies should invest at least 40 percent of it in the first two years of the project.

Speaking to Arab News, Matias Javier Mana, the undersecretary of international financial relations for development at the Argentine Ministry of Economy, and who is part of the delegation, said: “We came with a very important delegation to present to Saudi investors very specific incentives, (a) large investment incentive regime that is part of our macro-economic program that will show the investors how we will give them benefits and also some certainty and regulation for them to have a safe environment to invest in Argentina.

“Those incentives include goals from tax reductions to customs, facilitated treatments and also legal protections, international arbitration and also some specific regimes for all the supply chains that are somehow related to the project presented.”

He added: “It’s a regime that only considers projects or investments of over $200 million. The main sectors that we have identified and that are acceptable … within this regime are oil and gas, midstream mining, renewable energy, tourism, AI, and nuclear energy.

“As for us, all these sectors represent what we intend to develop and all the potential opportunities that Argentina can offer to international investors; in this case Saudi Arabia.

“This is all within the mission that we are currently undergoing in Saudi Arabia, led by our minister of foreign affairs with the Saudi Arabian government (which is) in order for us to design a road map of bilateral exchanges and strengthen the cooperation and relationship between our countries.”

Demian Reidel, the chief of advisers to the Argentine president, and who is also a member of the visiting delegation, told Arab News: “I oversee a wide portfolio with the main interest in AI and nuclear energy, and I am here with the delegation to facilitate everything that covers these interests.”

Facundo Vila, the ambassador of Argentina to the Kingdom, told Arab News: “The delegation is here about the new incentives regime for large-scale investments in Argentina.

“They include the secretaries of energy and mining, because those are the two key sectors in which we think Argentina has a lot to offer.

“The presentation focused on the main advantages that investors and prospective foreign investment would enjoy in Argentina.

“We believe it (the RIGI) is a very good opportunity in areas in which Saudi has a lot of expertise, oil and gas for example.

“We have a big oil base in Argentina but that needs to be worked on and they need capital infrastructure to make it work.”

 


Closing Bell: Saudi benchmark index closes in green 

Closing Bell: Saudi benchmark index closes in green 
Updated 10 February 2025
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Closing Bell: Saudi benchmark index closes in green 

Closing Bell: Saudi benchmark index closes in green 

RIYADH: Saudi Arabia’s Tadawul All Share Index increased on Monday, gaining 2.58 points, or 0.02 percent, to close at 12,471.72.        

The total trading turnover of the benchmark index was SR5.93 billion ($1.58 billion), as 72 stocks advanced, while 159 retreated.             

The MSCI Tadawul Index also increased by 0.68 points, or 0.04 percent, to close at 1,550.94.         

The Kingdom’s parallel market, Nomu, gained 12.11 points, or 0.04 percent, to close at 31,426.76. This comes as 37 stocks advanced while 52 retreated.          

Al-Babtain Power and Telecommunication Co. was the best-performing stock of the day, with its share price surging by 4.44 percent to SR47.        

Other top performers included East Pipes Integrated Co. for Industry, which saw its share price rise by 3.75 percent to SR160.60, and Makkah Construction and Development Co., which saw a 3.52 percent increase to SR111.80.        

Al Majed Oud Co. rose 3.32 percent to SR168, while Allied Cooperative Insurance Group gained 3.26 percent to SR17.76.    

Al Yamamah Steel Industries Co. saw the steepest decline of the day, with its share price easing 6.32 percent to close at SR36.30.    

Saudi Fisheries Co. fell 3.40 percent to SR53.90, while Leejam Sports Co. dropped 4.84 percent to SR169.20.    

Thimar Development Holding Co. also faced a loss with its share price dipping 2.75 percent to SR56.50, while Shatirah House Restaurant Co. saw a 3.12 percent to settle at SR22.94.     

On the announcements front, Leejam Sports Co. reported a 13 percent year-on-year growth in revenue for the financial year 2024, reaching SR1.50 billion. Net profit also surged by 28 percent, amounting to SR456 million compared to SR356 million in 2023.   

The increase in revenue was driven by a 10 percent rise in subscription and membership revenue and a 31 percent increase in income from paid programs, including personal training and swimming.   

The company’s revenue growth trailed historic trends partly due to changes in the subscription and brand mix.    

Leejam also recorded notable one-off gains in 2024, including SR92 million from the sale of three land plots in Riyadh and SR18 million from favorable rent negotiations related to centers in Ras Al-Khaimah, UAE.  

Despite the recorded gains, Leejam was among TASI’s worst performers.  

Saudi Electricity Co. has announced plans to hold meetings with fixed-income investors starting Feb. 10 regarding a potential issuance of US dollar-denominated sukuk under its international sukuk program.  

The issuance will be conducted through a special-purpose vehicle and offered to eligible investors in Saudi Arabia and internationally, subject to market conditions.   

The sukuk will be senior unsecured and issued in compliance with relevant regulatory approvals and laws.  

SEC has appointed a consortium of global and regional financial institutions, including HSBC, Standard Chartered Bank, BNP Paribas, and others, as joint lead managers for the potential offer.   

The proceeds from the issuance will be used to support SEC’s general corporate purposes, including capital expenditures, and to fund projects aligned with its Green Sukuk Framework.  

The final terms, including the value of the offer, will be determined based on market conditions and SEC’s requirements.  

SEC’s share price saw a slight 0.23 percent increase on Monday to reach SR17.30.


US-based ServiceNow to launch data centers in Saudi Arabia in 2026

US-based ServiceNow to launch data centers in Saudi Arabia in 2026
Updated 10 February 2025
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US-based ServiceNow to launch data centers in Saudi Arabia in 2026

US-based ServiceNow to launch data centers in Saudi Arabia in 2026
  • ServiceNow aims to build cloud infrastructure and develop essential skills to support its customers and partners better
  • Company announced major partnerships sealed during LEAP 2025 with Salam and stc

RIYADH: US-based software firm ServiceNow is set to launch data centers in Saudi Arabia in 2026, according to its Europe, the Middle East, and Africa president.

In an interview with Arab News on the sidelines of the second day of LEAP 2025, taking place in Riyadh from Feb. 9—12, Cathy Mauzaize revealed the date for the facilities, with the plans to develop them in the Kingdom announced at last year’s event.

The EMA president also talked up ServiceNow’s ambitions to build cloud infrastructure and develop essential skills in Saudi Arabia to support its customers and partners better.

ServiceNow’s plan falls in line with Saudi Arabia’s National Strategy for Data and Artificial Intelligence, which aims to train 40 percent of the workforce in essential skills to combat data and AI illiteracy and develop a talent pool of 20,000 data and AI specialists.

It also aligns with the strategy’s target of attracting SR75 billion ($19.99 billion) in local and foreign investments, as well as supporting over 300 startups to encourage entrepreneurship.

Speaking on the timeline of the date centers, Mauzaize said: "We’re going to, crossing my fingers, announce the services in 2026.”

She added that it is “time for us to build the data centers and make them available for our customers and partners here, in the Kingdom, but also, at the same time, we are investing a lot in creating skills, because if we don’t have skills, and especially in the young people, it’s going to be difficult for us to sustain the growth.” 

During the interview, Mauzaize went on to highlight that AI and generative AI will have a major impact on the EMA economy.

“If you look at the numbers that IDC (International Data Corporation) predicts for EMA and how much wellness or how much, you know, it impacts on the economy, it will have $5 trillion by 2030,” she said.

“But if you go into Saudi Arabia, 52 percent of the CEOs say AI is top of mind and 79 (percent) are saying: ‘we know that’s going to have a material impact on the way we run our business,’” the EMA president added. 

Mauzaize also underlined major partnerships sealed during LEAP 2025 with Salam, a leading digital infrastructure provider in the Kingdom, and the Saudi Telecom Co.
 
“Salam — it’s a big partnership to help them run on a much faster way, their own operation and to go after a brand-new set of customers in SME space. We have this vision together that, hey, let’s go modernize, help you develop your top line proper, new services embedded into platform and fuse with AI as a service to your end customer, and let’s together go after the small and medium business,” she said.
 
“STC, we are announcing again a very strategic partnership to help them on their modernization journey, but also as a partner to go to market together. We are very, very proud of those two announcements and we believe that those two will help us accelerate significantly how we get into the Kingdom with success,” the EMA president added.

Mauzaize explained that ServiceNow is the only AI platform designed specifically for business and digital transformation.

“We have a platform that combines data, the ability to collect all the data and to connect to any source of system, structured data and unstructured data. We are having AI at the core and now Gen AI, generative AI, that has ability to interact with the human touch and augment human and collaborate with human,” she said.

The EMA President added: “And then we have the workflow, and so the workflow are our ability to digitalize processes. If you think about it in any company anything you do is a process and then is a workflow, so you can either do workflow manually or do a workflow digitally and automate them.”

Held under the theme “Into New Worlds,” LEAP 2025 aims to expand business networking and investment opportunities in the tech sector.
 
The event plays a key role in Saudi Arabia’s ambition to become a global technology hub, aligning with its Vision 2030 plan to diversify the economy. As part of this initiative, the Kingdom has pledged $100 billion toward advancing its technology sector.