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Saudi tech sector surges with spike in AI and Cloud service registrations in Q2

Saudi tech sector surges with spike in AI and Cloud service registrations in Q2
According to the Ministry of Commerce’s quarterly business sector bulletin, Saudi the Kingdom issued 8,948 official identification cards for AI technologies during the second quarter, compared to 5,820 issued in the same quarter last year. Shutterstock
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Updated 07 July 2024
ARAB NEWS 
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Saudi tech sector surges with spike in AI and Cloud service registrations in Q2

Saudi tech sector surges with spike in AI and Cloud service registrations in Q2
Updated 07 July 2024
ARAB NEWS 
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RIYADH: The Saudi tech industry saw strong growth in the second quarter, with registrations for artificial intelligence technologies and cloud computing services rising by 53 percent and 43 percent, respectively.

According to the Ministry of Commerce’s quarterly business sector bulletin, Saudi the Kingdom issued 8,948 official identification cards for AI technologies during the second quarter, compared to 5,820 issued in the same quarter last year. Additionally, 2,358 such documents were issued for cloud computing services, up from 1,648 in the same quarter of the previous year. 

This surge aligns with Saudi Arabia’s strong global market competitiveness, as the nation ranks 16th out of 67 countries in the World Competitiveness Ranking by the International Institute for Management Development. 

Riyadh accounted for the largest share of AI technology permits with 5,492, followed by Makkah with 1,789, the Eastern Province with 939, Madinah with 254, and Asir with 115. 

The data also revealed a surge in the arts, entertainment, and leisure sector, with 20,465 commercial records issued in the second quarter of this year, up from 16,438 in the same period last year. 

In a notable expansion for the electronic games sector, the ministry recorded 336 registrations in the second quarter of this year, up from 260 in the same quarter the previous year, indicating a 29 percent growth. 

Meanwhile, there were 8,213 issuances for ground passenger transport services in cities and suburbs in the second quarter, up from 6,227 in the same period last year. 

Additionally, the short-term accommodation sector experienced a 22 percent increase, issuing 22,435 business records compared to 18,398 in the same quarter last year. 

The mining and quarrying sector recorded 7,871 registrations, up from 6,671 in the same quarter last year. 

Meanwhile, the pharmaceuticals and medical products business saw a 34 percent increase in issuance, with 1,155 commercial records issued compared to 859 in the same quarter the previous year. 

This comes as the ministry issued more than 120,000 commercial registrations in the second quarter of 2024, marking a 78 percent year-on-year increase. Specifically, a total of 121,521 official identification cards for businesses were issued during the period, up from 68,222 in the same period last year. 

Topics: main techlogy AI cloud Saudi Ministry of commerce

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OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March
Updated 27 sec ago
Arab News
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OPEC+ extends production cuts by three months through March

OPEC+ extends production cuts by three months through March
Updated 27 sec ago
Arab News

RIYADH: OPEC+ on Thursday agreed to extend their supply cuts for three months through March to to support market stability.

OPEC+ countries, including Saudi Arabia and Russia, “will extend their additional voluntary adjustments of 2.2 million barrels per day... until the end of March 2025,” the alliance said in a statement.

A virtual meeting was held on the sidelines of the 38th OPEC and non-OPEC Ministerial Meeting.

According to the statement, the meeting welcomed the pledges made by the overproducing countries to achieve full conformity and resubmit their updated compensation schedule to the OPEC Secretariat for the overproduced volumes since January 2024 before the end of December 2024.

Topics: OPEC OPEC+

NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming
Updated 53 min 47 sec ago
Reem Walid  
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NEOM’s Topian launches pilot greenhouse for climate-resilient farming

NEOM’s Topian launches pilot greenhouse for climate-resilient farming
Updated 53 min 47 sec ago
Reem Walid  

RIYADH: NEOM’s food company, Topian, has unveiled its first high-tech greenhouse in Oxagon, the industrial hub along Saudi Arabia’s Red Sea coast. 

The four-hectare facility, located in Oxagon Innovation Bay, is designed to pilot sustainable and localized food production using advanced agricultural technologies, according to a press releasae.

The greenhouse is expected to produce nearly 4,000 tonnes of fruits and vegetables annually while developing AI-driven predictive models to optimize operations in similar environments. 

This initiative is part of Topian’s broader mission to enhance food systems with sustainable practices that minimize resource use. It aligns with Saudi Arabia's ambitions to enhance food security, combat climate change, and achieve net-zero emissions by 2060, all in support of Vision 2030 goals.

“This project is exciting because this first set of high-tech greenhouses enables us to control the climate for plant growth in an environmentally friendly manner,” said Juan Carlos Motamayor, CEO of Topian. 

“It represents a positive step towards boosting regional and national food security and transforming food systems in Saudi Arabia and other arid regions affected by climate change,” he added.

The pilot will evaluate crop performance under various conditions, focusing on energy and water efficiency, cooling technologies, and radiation control. The project will leverage NEOM’s future renewable energy infrastructure to further optimize production, the release added.

Future plans include leveraging NEOM’s renewable energy infrastructure, such as its photovoltaic network, to further optimize operations.

Vishal Wanchoo, CEO of Oxagon, said: “This pilot aims to deliver, at scale, sustainably produced ingredients that NEOM residents and hospitality partners will be able to use – demonstrating an entirely localized ‘farm-to-table’ supply chain.” 

The greenhouse will provide year-round availability of locally grown produce such as lettuce, tomatoes, and strawberries, prioritizing quality and sustainability. Scientists will analyze taste, color, and texture to refine crop production for the consumer market.

Developed in collaboration with Van der Hoeven, a Dutch horticultural technology firm, the project serves as a testbed for innovative agricultural solutions. It aligns with NEOM’s broader goals to establish sustainable industries and tackle food security challenges in arid regions.

By showcasing the potential of clean technology and innovative farming practices, Topian’s greenhouse project underscores NEOM’s commitment to pioneering solutions that address global challenges and set a benchmark for future sustainable development.

Topics: NEOM farming

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Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital
Updated 05 December 2024
Arab News Japan
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Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital

Saudi Arabia launches 1st Japanese equity fund in partnership with SBI, Albilad Capital
Updated 05 December 2024
Arab News Japan

DUBAI: Saudi Arabia has launched its first Japanese equity mutual fund, marking a significant step in a new partnership between Albilad Capital, the Kingdom’s largest exchange-traded fund manager, and Japan’s SBI Holdings, a leading financial group.

In a statement released on Thursday, SBI Holdings announced that the collaboration would provide Saudi investors with access to Japanese equities for the first time. At the same time, Japanese investors will be able to explore Saudi Arabia’s innovative financial offerings, including Shariah-compliant ETFs.

This partnership builds on a milestone achievement earlier this year, when SBI Asset Management— a subsidiary of SBI Global Asset Management— launched Japan’s first Saudi stock index-linked ETF, the SBI Saudi Arabia Equity Exchange Traded Fund, on the Tokyo Stock Exchange.

This new agreement further solidifies the investment ties between Saudi Arabia and Japan, contributing to the Kingdom’s Vision 2030, which focuses on attracting foreign investment, diversifying the economy, and expanding key sectors such as tourism, entertainment, and non-oil industries.

Recent developments supporting this vision include the creation of one of the world’s largest theme parks based on popular Japanese intellectual properties like Dragon Ball, as well as significant investments in major Japanese gaming companies.

Albilad Capital, the investment arm of Bank Albilad, is a key player in Saudi Arabia’s financial market and manages a significant portion of the country’s ETFs.

Meanwhile, SBI Group, which established its Middle East regional hub in Riyadh earlier this year, has reinforced its commitment to the region. The group has also teamed up with local firms to launch a regional investment fund aimed at fostering growth and innovation.

This collaboration highlights the deepening financial and economic ties between Saudi Arabia and Japan, positioning both nations for a future of shared investment opportunities.

Topics: equity fund shares

Saudi Arabia ranks among top three globally in post-pandemic tourism rebound

Saudi Arabia ranks among top three globally in post-pandemic tourism rebound
Updated 05 December 2024
Nour El-Shaeri
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Saudi Arabia ranks among top three globally in post-pandemic tourism rebound

Saudi Arabia ranks among top three globally in post-pandemic tourism rebound
Updated 05 December 2024
Nour El-Shaeri

RIYADH: Saudi Arabia has emerged as the third-fastest-growing destination worldwide for international tourism recovery in 2023, with arrivals increasing by 61 percent compared to pre-pandemic levels, according to the latest World Tourism Barometer from the UN World Tourism Organization.

The Middle East, led by Saudi Arabia and Qatar, has recorded the strongest growth globally, with international tourism recovering 98 percent of its pre-pandemic activity. Saudi Arabia’s tourism sector, a key pillar of the Kingdom’s Vision 2030 plan, is central to its broader strategy to diversify the economy away from oil dependence.

This growth is fueling efforts to boost tourism’s contribution to the national gross domestic product, with a target to raise its share from 3 percent to 10 percent by the end of the decade, aligning with the Vision 2030 objectives.

According to the Barometer, 1.1 billion international tourists traveled globally between January and September 2023, marking a major milestone in the industry’s recovery post-COVID-19.

Full recovery is expected by the end of the year, with the Middle East leading the way in growth, driven by Saudi Arabia and Qatar’s stellar performance.

Qatar, for example, saw more than double the number of arrivals compared to 2019, while Saudi Arabia's surge in visitor numbers further cemented its position as a global tourism leader.

Globally, tourism recovery has been steady across regions. Europe and Africa both surpassed 2019 levels in tourist arrivals, while the Americas reached 97 percent of pre-pandemic figures. Asia and the Pacific, which reopened more gradually, reached 85 percent of 2019 levels by September, showing continued improvement.

The Northern Hemisphere’s summer travel season was especially strong, with global arrivals nearly matching pre-pandemic levels in the third quarter.

Tourism spending has also surged. Of the 43 destinations tracked by the UNWTO, 35 reported higher tourism receipts than before the pandemic. This trend is reflected in Saudi Arabia, which has seen an increase in both visitor numbers and spending. Other countries, including Japan, Turkiye, and France, have also experienced significant growth in tourism receipts. Spain, Italy, and the UK also reported strong increases in tourism-related earnings.

UNWTO Secretary-General Zurab Pololikashvili commented: “The strong growth in tourism receipts is excellent news for economies worldwide. The fact that visitor spending is growing even faster than arrivals directly benefits millions of jobs, small businesses, and contributes significantly to the balance of payments and tax revenues in many countries.”

As global tourism recovers, Saudi Arabia continues to capitalize on this momentum to solidify its position as a leading global travel destination, while advancing its ambitious economic diversification goals.

PIF, Bpifrance sign $10bn MoU to boost Saudi-French financial ties

PIF, Bpifrance sign $10bn MoU to boost Saudi-French financial ties
Updated 05 December 2024
Miguel Hadchity
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PIF, Bpifrance sign $10bn MoU to boost Saudi-French financial ties

PIF, Bpifrance sign $10bn MoU to boost Saudi-French financial ties
Updated 05 December 2024
Miguel Hadchity

RIYADH: Saudi Arabia’s Public Investment Fund and Bpifrance Assurance Export have signed a memorandum of understanding valued at $10 billion to enhance financial cooperation between the two nations.

The agreement, announced in a press release, will provide financing support to PIF and its portfolio companies over the next five years.

This collaboration is aimed at advancing sectors central to Saudi Arabia’s Vision 2030, which seeks to diversify the Kingdom’s economy and reduce reliance on oil. The deal also underscores PIF’s ongoing efforts to strengthen its international financial partnerships and expand its investment footprint globally.

“As a key driver of Vision 2030 and a leading global investor, PIF is mandated to transform and diversify the Saudi economy,” the press release noted.

Rasees Al-Saud, head of Financial Institutions and Investor Relations at PIF, called the MoU a crucial step in fostering international financial collaboration.

“This MoU marks another significant milestone in PIF’s strategy to deepen its relationships with leading global financial institutions and export credit agencies. It will open new doors for French and Saudi companies to collaborate, exchange expertise, and achieve mutually beneficial outcomes.”

Denis Le Fers, director general of Bpifrance Assurance Export, shared a similar sentiment, emphasizing the potential benefits for both countries.

“This agreement will strengthen Franco-Saudi commercial ties, increase trade flows, and create opportunities for French companies to form new partnerships. It will also contribute to the realization of Saudi Vision 2030.”

The deal highlights PIF’s growing role as a global investment catalyst and aligns with its objective to stimulate economic growth and job creation. Since its establishment in 2017, PIF has launched 99 companies, continuing to drive the Kingdom’s economic transformation through strategic partnerships.

This MoU comes on the heels of a state visit by French President Emmanuel Macron to Saudi Arabia in early December. Macron’s visit, which followed an invitation from Crown Prince Mohammed bin Salman, underscored the deepening bilateral ties and mutual commitment to enhancing cooperation across sectors, in line with both Saudi Vision 2030 and France 2030.

The number of French companies operating in Saudi Arabia has risen by more than 43% since 2020. Major French investors in the Kingdom include Air Liquide, Airbus, L'Oréal, and Total, spanning industries from energy to cosmetics.

During his visit, Macron also signed executive programs with French cultural institutions in Saudi Arabia to foster collaborations in areas such as heritage preservation, museums, libraries, and film. These initiatives will include artist training, archaeological surveys, educational workshops, and other cultural activities.

This growing partnership between France and Saudi Arabia signals a shared ambition to foster economic growth and cultural exchange in the years ahead.

Topics: deal

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