AI startup DXwand to set up local office in Riyadh

AI startup DXwand to set up local office in Riyadh
Egypt-born generative artificial intelligence startup DXwand is leaving no stone unturned as it aims to get closer to its clients with an on-ground team. (SPA)
Short Url
Updated 21 July 2024
Follow

AI startup DXwand to set up local office in Riyadh

AI startup DXwand to set up local office in Riyadh
  • DXwand’s expansion strategy firmly aligned with Kingdom’s Vision 2030

CAIRO: Saudi Arabia’s growing business landscape has encouraged regional and global companies to establish a local presence in the burgeoning market. 

Egypt-born generative artificial intelligence startup DXwand is leaving no stone unturned as it aims to get closer to its clients with an on-ground team. 

In an interview with Arab News, Ahmed Mahmoud, CEO of DXwand, shared the company’s strategic insights into establishing a local office in Riyadh by mid-year. 

“We already started formalities and got the MISA (Saudi Arabia’s Ministry of Investment) license. The exact location is still in discussion, but it shall be in the amazing capital of Saudi, Riyadh,” he said. 

One step closer 

Mahmoud emphasized the importance of delivering value and impact swiftly with quick wins and is also keen to demonstrate the company’s differentiated position in technology and long-term ambitions in partnerships. 

He said: “That objective is planned to be achieved with local partners, in technology and other industries, to ensure our success. We already have several partners in place in Saudi, and our plan is to multiply this number by the end of 2024.” 

DXwand’s expansion strategy is firmly aligned with Saudi Arabia’s Vision 2030, focusing on economic diversification and digital transformation. 

Mahmoud said: “By focusing on delivering impact on Saudi’s focus areas of its 2030 vision, especially in economic diversification, quality of life, environmental sustainability, and culture and entertainment, we have set long-term goals and corresponding initiatives to support and impact these areas.” 

He further explained: “DXwand’s expansion always involves local partners who are industry-focused or technology builders, leading to larger contributions to each country’s economy, delivering faster and deeper impact, and achieving marvelous results with local talent and resources who understand the culture and local pains very well.” 

One of these partners includes Gulf business expansion platform AstroLabs which aims to leverage DXwand’s strong presence in the US, the UAE, and Egypt. 

Mahmoud emphasized the importance of working with official bodies to enhance their sector’s services. 

“Collaboration with the Saudi government is a key cornerstone to deliver our expansion vision, and we are in the process of identifying potential collaboration areas of focus and concerned government entities,” he said.

This collaboration is intended to support DXwand’s alignment with the country’s evolving regulatory environment. 

Our solutions align with the country’s goals to enhance digital infrastructure, improve government services, and foster innovation.

Ahmed Mahmoud, CEO of DXwand

“Regulations for AI is an emerging area not just for Saudi but also worldwide. We believe in early engagement with regulators to benefit both parties in understanding risks and building proactive mitigations. We believe AI companies should be responsible, regardless of regulations, to build safe AI technology and ensure it follows standards of privacy and safety worldwide,” Mahmoud said.

“This shall help us adapt to any regulatory needs in Saudi as we are proactively mitigating risks and ensuring a safe experience for our community,” he added. 

Mahmoud said the company has been growing yearly by a multiple of two since 2020,  and he is looking to maintain this trajectory along with delivering two nationwide impact initiatives per year.

He added that Saudi Arabia would be a major geography for one of these national impact initiatives in 2024. “We believe Saudi has all needed success elements to deliver not just one of our national initiatives, but it could even be the best delivered,” he said. 

Mahmoud also revealed that the company has three new products in the pipeline, leveraging their generative AI technology, although details are still under wraps. 

“With the help of our co-build partners, we have three new products in the pipeline leveraging our same generative AI technology. We can’t at the moment share more details about them while we shall have them announced with relevant partners very soon,” he said.

Expanding to Saudi Arabia is pivotal for DXwand’s strategy due to factors like alignment with Vision 2030, market opportunities, and government support, Mahmoud highlighted. 

He further explained the alignment of DXwand’s AI solutions with Vision 2030’s ambitions for economic diversification and digital transformation.

“Our solutions align with the country’s goals to enhance digital infrastructure, improve government services, and foster innovation,” he said. 

He added that significant investments in sectors such as healthcare, education, financial services, and tourism present lucrative opportunities for DXwand. 

Government support for a knowledge-based economy and technology investment also aligns with his company’s objectives, Mahmoud said. 

Initiatives to attract foreign investments and create a favorable business environment make Saudi Arabia a strategic location that offers access to other Middle Eastern markets, serving as a springboard for regional expansion, Mahmoud explained. 

The tech-savvy Saudi population provides a receptive market for AI-driven solutions. “This demographic is receptive to adopting new technologies, creating a conducive environment for AI solutions,” he said.

Business fundamentals 

Regarding funding, DXwand has raised $6.7 million since its foundation, with the latest $4 million series A round closing in December 2023. This investment will ignite the establishment of DXwand in Saudi Arabia, fostering strategic partnerships with local partners, educational institutes, and strategic clients. 

Mahmoud said: “We plan to use part of the fund to ignite activities of first establishment of DXwand in Saudi and fostering strategic partnerships to build an ecosystem that both delivers DXwand’s ambition of growth while partnering with Saudi to impact and accelerate the execution of its 2030 vision outcomes and land nationwide impact.” 

Addressing industry challenges in Saudi Arabia, Mahmoud discussed the hype surrounding generative AI and DXwand’s  approach to finding niche solutions. 

He noted that DXwand’s platform, DXP, is designed to solve issues such as high large language model costs, lack of managed accuracy measurement, and slow time to market. 

“DXwand’s platform DXP offers over 90 percent cost optimization leveraging low-end LLM offerings, while increasing accuracy by over 30 percent using one tool that enables experiments to measure and RAG (retrieval-augmented generation) to optimize accuracy and costs easily,” Mahmoud said. 

DXwand operates on a subscription-based business model, selling its products with annual or monthly subscriptions relevant to the problem size, represented by conversation volume or user numbers. 

Mahmoud stated that DXwand is a profitable company with a healthy financial model, designed to ensure profitable unit economics. 

The motivation behind founding DXwand stemmed from Mahmoud’s experience at Microsoft, where he saw the potential for AI ventures focused on the region’s cultural and linguistic needs. 

“This potential was not served and it gave me the temptation to take a leap of faith and resign from such a reputable international Silicon Valley giant to start DXwand’s journey,” he stated. 

Key performance indicators for DXwand include LLM cost optimization, accuracy overtime, new sign-ups, new contracts, new partners, and time to market. 

Mahmoud emphasized the importance of managing growth carefully in Saudi Arabia to maintain reputation and customer experience. 

“For Saudi specifically, as we are still newly introduced, I would focus on new partnerships, new client sign-ups, and their experience with costs and accuracy optimization,” he noted. 

Mahmoud assesses the current market landscape in Saudi Arabia for AI and technology as rapidly evolving, with numerous opportunities and challenges. 

He highlighted the Saudi government’s leadership and investments in economic diversification, digital transformation, artificial intelligence, and talent development. 

“With government leadership and investments in economy diversification, digital transformation, artificial intelligence, and talent development, we foresee a great growth opportunity with such an emerging market with a remarkable GDP (gross domestic product) and population,” he stated. 

Regarding industry forecasts, Mahmoud anticipates a downturn in adoption due to economic factors and the costs of operating generative AI, impacting their business cases. However, he sees this as an opportunity. 

“We foresee a downturn in adoption impacted by economic factors and costs of operating generative AI and its reflections on their relative business cases, which is a great opportunity for the upcoming year or two to leverage this challenge if you have a solution that can deliver such technology with cost efficiency and ability to scale fast,” he explained.


Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps
Updated 19 February 2025
Follow

Brazil adheres to OPEC+ cooperation letter; no output caps

Brazil adheres to OPEC+ cooperation letter; no output caps

SAO PAULO: Brazil has decided to adhere to the declaration of cooperation of the OPEC+ group of oil-producing countries, the local energy ministry said on Tuesday, formalizing a move it had initially announced in 2023.

Brazil is the largest oil producer in South America. Its output hit 4.32 million barrels of oil equivalent per day in 2024, according to the country’s oil regulator.

It will join nations such as Saudi Arabia and Russia in the group’s declaration, but is not expected to take part in its coordinated output caps.

The move shows Brazil’s “growing relevance in the oil and gas market,” the mines and energy ministry said in a statement, adding, however, that the country would “continue to develop its energy policy in line with its own interests.”

“It is important to highlight that the declaration does not include the participation of countries in decisions aimed at cutting oil production,” the ministry said.

Brazil first said it was going to join the OPEC+ cooperation in late 2023, but President Luiz Inacio Lula da Silva reiterated at the time the country had no intention to be a full member, instead acting as an “observer.”

The country on Tuesday has also decided to become a member of the International Renewable Energy Agency (IRENA) and the International Energy Agency (IEA), the government said.


Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait
Updated 19 February 2025
Follow

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

Saudi ACWA Power expands portfolio with $693m acquisitions in Bahrain, Kuwait

RIYADH: Saudi utility giant ACWA Power has strengthened its portfolio by acquiring a $693 million stake in power generation and water desalination companies in Bahrain and Kuwait.

The company has secured holdings in four companies after buying the shares held by the regional subsidiary of French utility developer Engie.

The deal includes a 45 percent interest in both the Al-Ezzel and Al-Dur projects as well as a 30 percent holding in the Al-Hidd facility, all situated in Bahrain. 

It also sees ACWA Power acquire an 18 percent stake in Az Zour North in Kuwait.

The move falls in line with ACWA Power’s strategy to be at the forefront of the energy transition by delivering reliable and responsible power, desalinated water, and green hydrogen at low cost in Saudi Arabia and the wider Gulf Cooperation Council and attractive high-growth markets based on a de-risked and contracted business model.

“This acquisition represents a pivotal milestone for ACWA Power, reinforcing our position as global leader in water desalination. We consolidate our presence in Bahrain where we are already a reliable supplier of power and water, and we enter Kuwait, where we recently submitted a bid for a large power and desalination plant,” CEO of ACWA Power Marco Arcelli said. 

“Reinforcing our presence in each country will allow us to further develop our people there and localize our operations more, providing safe and reliable supplies to the local communities and industries,” he added.

ACWA Power will also acquire a portfolio of companies responsible for the operation and maintenance of the four assets, specifically Az Zour North O&M Co., with a 50 percent stake and complete ownership of Al-Ezzel O&M Co.

The deals cover operating capacities of 4.61 gigawatts of gas-fired power generation and 1.11 million cubic meters per day of water desalination facilities, as well as the related operations and maintenance companies in the two countries, according to a statement.

Chief Investment and Development Officer of ACWA Power Thomas Brostrom said: “By making its inaugural entry into the Kuwaiti market through the acquisition of a stake in the Az-Zour North Facility, ACWA Power has achieved a significant milestone in its strategic efforts to expand its presence within the regional energy and water desalination sector.”

The secured contracted revenue streams from the acquired assets align well with the firm’s broader strategy of tripling its assets under management to $250 billion by 2030.


Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India
Updated 19 February 2025
Follow

Qatar commits to investing $10bn in India

Qatar commits to investing $10bn in India

NEW DELHI: Qatar has committed to investing $10 billion in India across various sectors, the two nations said in a joint statement on Tuesday, after Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani visited New Delhi.

Indian Prime Minister Narendra Modi said he had a “very productive meeting” with Qatar’s Emir, who was on a two-day visit to New Delhi.

“Trade featured prominently in our talks. We want to increase and diversify India-Qatar trade linkages,” Modi said in a post on X. It was the first such visit by a Qatari Emir to the South Asian nation in 10 years.

According to the statement, Qatar will invest $10 billion in India in infrastructure, technology, manufacturing, food security, logistics, hospitality and other sectors.

The two countries will aim to double their annual trade to $28 billion in the next five years and are exploring the signing of a free trade agreement, the Indian foreign ministry said earlier in the day.

Bilateral trade between the two nations stood at $18.77 billion in the fiscal year that ended in March 2023, mainly comprising liquefied natural gas imports from Qatar.

Qatar accounted for more than 48 percent of India’s LNG imports that year.

The two sides said they would work to enhance bilateral energy cooperation, including mutual investments in energy infrastructure, as well as look at settlement of bilateral trade in their respective currencies. 


Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity
Updated 19 February 2025
Follow

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

Oil Updates — crude gains on US, Russia supply worries; market seeks Ukraine talks clarity

HOUSTON/SINGAPORE: Oil prices edged up on Wednesday amid worries of oil supply disruptions in the US and Russia, and as markets awaited clarity on the Ukraine peace talks.

Brent crude futures were up 14 cents, or 0.2 percent, at $75.98 a barrel at 7:50 a.m. Saudi time, and possibly set for a third day of gains.

US West Texas Intermediate crude futures for March rose 16 cents, or 0.2 percent, to $72.01, up 1.8 percent from the close on Friday after not settling on Monday because of the Presidents’ Day public holiday. The March contract expires on Thursday and the more active April contract gained 14 cents, or 0.2 percent, to $71.97.

“The psychologically important $70 level appears to have held firm, aided by the Ukrainian drone attack on the Russian oil pumping station and fears that cold weather in the US may curtail supply,” said IG market analyst Tony Sycamore.

“On top of that there is some speculation that OPEC+ may decide to delay its planned supply increase in April,” he said, referring to the Organization of the Petroleum Exporting Countries and allies.

Russia said oil flows through the Caspian Pipeline Consortium, a major route for crude exports from Kazakhstan, were reduced by 30 percent to 40 percent on Tuesday after a Ukrainian drone attack on a pumping station. A 30 percent cut would equate to the loss of 380,000 barrels per day of supply to the market, according to Reuters calculations.

Meanwhile, cold weather threatened US oil supply, with the North Dakota Pipeline Authority estimating that production in the country’s No. 3 producing state would be down by as much as 150,000 bpd.

US President Donald Trump’s administration said on Tuesday it had agreed to hold more talks with Russia on ending the war in Ukraine. A deal could ease or help remove sanctions that have disrupted the flows of Russian oil shipments.

Analysts at Goldman Sachs said a potential Ukraine-Russia peace deal and associated easing in sanctions on Russia is unlikely to significantly raise Russia oil flows.

“We believe that Russia crude oil production is constrained by its OPEC+ 9 million barrels per day production target rather than current sanctions, which are affecting the destination but not the volume of oil exports,” they said in a report.

Israel and Hamas will also begin indirect negotiations on a second stage of the Gaza ceasefire deal, officials said on Tuesday.

However, Trump said on Tuesday he intends to impose auto tariffs “in the neighborhood of 25 percent” and similar duties on semiconductors and pharmaceutical imports.

Tariffs could raise prices for consumer products, weaken the economy and reduce demand for fuel. 


Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 
Updated 19 February 2025
Follow

Saudi Arabia raises $818m in February sukuk sale 

Saudi Arabia raises $818m in February sukuk sale 

RIYADH: Saudi Arabia raised SR3.07 billion ($818 million) through its February sukuk issuance as the Kingdom continues to tap debt markets to support economic diversification efforts. 

The latest riyal-denominated offering, managed by the National Debt Management Center, follows a SR3.72 billion issuance in January. The Kingdom raised SR11.59 billion in December and SR3.41 billion in November, according to official data. 

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership in an issuer’s assets while adhering to Islamic finance principles. Saudi Arabia has been a key player in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan. 

According to the NDMC, the February issuance was split into four tranches. The first, valued at SR585 million, matures in 2029, while the second, at SR1.70 billion, is set to mature in 2032. The third tranche, worth SR404 million, is due in 2036, and the final portion, totaling SR376 million, will expire in 2039. 

Saudi Arabia is expected to play a leading role in driving global debt and sukuk issuance over the next two years, Fitch Ratings said earlier this month. The Kingdom’s financial institutions and corporations are increasingly turning to international debt markets to diversify their funding sources, the agency noted. 

A separate report by Fitch projected Saudi Arabia’s debt capital market to reach $500 billion by the end of 2025, supported by a growing pipeline of infrastructure and development projects. 

The Kingdom is also set to lead bond and sukuk maturities in the Gulf region, with redemptions expected to total $168 billion between 2025 and 2029, according to a December report by Kamco Invest. Government-issued debt will account for the largest share, with maturities projected to reach $110.2 billion during the period. 

Across the Gulf Cooperation Council, the debt capital market surpassed the $1 trillion mark in outstanding issuances by the end of November, Fitch said in a separate report. 

Meanwhile, global sukuk issuance is forecast to range between $190 billion and $200 billion in 2025, driven by activity in key markets such as Saudi Arabia and Indonesia, according to S&P Global. The credit rating agency reported that global sukuk sales totaled $193.4 billion in 2024, slightly down from $197.8 billion in 2023.