Saudi investment licenses for Egyptian firms double in 2024, says minister 

Saudi Investment Minister Khalid Al-Falih. File
Saudi Investment Minister Khalid Al-Falih. File
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Updated 16 September 2024
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Saudi investment licenses for Egyptian firms double in 2024, says minister 

Saudi investment licenses for Egyptian firms double in 2024, says minister 

RIYADH: Saudi Arabia’s issuance of investment licenses to Egyptian businesses more than doubled in 2024, reflecting a significant boost in economic collaboration between the two nations, according to a senior minister.

At a meeting with Egyptian Prime Minister Mostafa Madbouly, organized by the Federation of Chambers in Riyadh, Saudi Investment Minister Khalid Al-Falih underscored Egypt’s increasing role as a key economic partner for the Kingdom. This follows Saudi Arabia’s exports to Egypt totaling $6.44 billion in 2022, while Egypt’s exports to the Kingdom reached $2.35 billion, as reported by the Observatory of Economic Complexity.

“During 2024, it (investment licenses) grew by more than 100 percent over the previous year, and Egyptian investors created more than 80,000 jobs in the Saudi economy,” the minister said.

He further emphasized the importance of the Egyptian market to the Kingdom, noting its broad involvement in sectors such as tourism, transportation, infrastructure, real estate development, agriculture, energy, and information technology.

“We, in the Kingdom, believe that strengthening cooperation with Egypt will benefit both the Saudi and Egyptian economies, which are, as I mentioned, the nucleus and heart of the Arab economy,” Al-Falih added.

The minister also pointed out that collaboration and integration between the two countries, along with leveraging their competitive advantages, would accelerate regional economic growth. He highlighted the relevance of this cooperation in light of global economic shifts supporting global supply chains, environmental preservation, and emerging sectors like information technology and artificial intelligence.

“The Saudi investor will not only provide Egypt with his investments but will be a partner with international companies that invest with him in the Kingdom and in all countries of the world. We aspire for Egypt to be an extension of investments in the Kingdom, giving us the weight of the large strategic market and the free trade agreements that Egypt enjoys,” he concluded.

During the meeting, Prime Minister Madbouly noted that Saudi Arabia remains the primary destination for Egyptian expatriates. “Our goal is to raise Egyptian exports from $35 billion to $145 billion,” he said.

Madbouly also emphasized Egypt’s efforts to resolve issues faced by Saudi investors, stating that many problems have been addressed, with ongoing work to tackle remaining challenges. He highlighted Egypt’s aim to attract more Saudi investments, especially with new incentives such as the golden license.

Egypt’s Minister of Investment and Foreign Trade, Hassan El-Khatib, who also attended the meeting, stressed the importance of listening to investors. “We know the challenges that the investor faces and find solutions to them,” he stated.

El-Khatib added: “The goal in this field is for me to have a clear investment policy that puts the competitiveness of the Egyptian economy at the heart of this strategy.”


Aramco Digital aims to make Saudi Arabia a cybersecurity, AI leader, says exec

Aramco Digital aims to make Saudi Arabia a cybersecurity, AI leader, says exec
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Aramco Digital aims to make Saudi Arabia a cybersecurity, AI leader, says exec

Aramco Digital aims to make Saudi Arabia a cybersecurity, AI leader, says exec

RIYADH: Aramco Digital is at the forefront of Saudi Arabia’s shift toward a technology-driven economy, implementing key initiatives in cybersecurity, 5G infrastructure, and artificial intelligence.

In alignment with Vision 2030, the company is developing an industrial 5G network and a major AI-driven data center, positioning the Kingdom as a global tech leader and driving economic growth through digital innovation.

In an interview with Arab News at the Global Cybersecurity Forum in Riyadh, Margarete Schramboeck, a board member of Aramco Digital, highlighted the firm’s crucial role in Saudi Arabia’s digital transformation, particularly in cybersecurity and its industrial applications.

“Cybersecurity plays an important role not only for our private lives but especially for the business lives,” Schramboeck said, highlighting the importance of Aramco Digital and its subsidiary, Cyberani, in safeguarding companies, industrial sectors, and government authorities. 

Their priority is to create safer and more productive environments. “It’s one of our focuses,” she added.

As a comprehensive information and communication technology company, Aramco Digital is working to enhance Saudi Arabia’s online infrastructure. 

The firm has secured a license to develop an industrial private 5G network, which will soon be deployed across the country. This network will serve as a foundation for industrial companies and government entities. 

Schramboeck also shared that Aramco Digital is collaborating with US artificial intelligence company Groq to build a major data center designed for storage and AI-focused processing. 

“Most importantly, it (the data center) is Saudi, and it is important that we see that this is an important aspect,” she added.

This facility aims to become one of the largest in the Middle East, potentially the world, driving the Kingdom’s ambition to be a global hub for AI and digital innovation.

The company’s commitment aligns with Vision 2030, Saudi Arabia’s blueprint for economic diversification. “Helping Saudi Arabia and the region in this digital transformation is key for us,” Schramboeck said, emphasizing the local origin of the data center and its role in shaping the Kingdom’s future.

Schramboeck also discussed the critical role of cybersecurity in enabling broader digital transformation. “We cannot do anything today without cybersecurity,” she stressed, linking it to the resilience of economies worldwide. 

She praised the Global Cybersecurity Forum for spotlighting the skills and innovative potential within the sector, underscoring its importance in building economic resilience.

Reflecting on the Kingdom’s digital progress, Schramboeck expressed admiration for the country’s advancements, particularly in the public sector, highlighting that “Saudi Arabia and the government sector is ahead of a lot of European countries.” 

While she acknowledged the potential for cooperation between the Kingdom and Europe, particularly in industrial automation, she emphasized that Saudi Arabia has been making remarkable strides in achieving its goals through investment in both funding and manpower.

Schramboeck concluded by expressing her desire to help bridge the gap between the Kingdom and mid-sized European companies specializing in industrial automation. 

“There are a lot of mid-sized European specialized companies in this field. Sometimes they don’t know about Saudi Arabia, they don’t dare to come here,” she said, expressing her commitment to fostering collaboration and growth in this field.


Saudi Arabia urges global cooperation to build trust, strengthen cybersecurity frameworks

Saudi Arabia urges global cooperation to build trust, strengthen cybersecurity frameworks
Updated 03 October 2024
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Saudi Arabia urges global cooperation to build trust, strengthen cybersecurity frameworks

Saudi Arabia urges global cooperation to build trust, strengthen cybersecurity frameworks

RIYADH: Saudi Arabia’s efforts to spearhead global cooperation in digital defense took center stage at the Global Cybersecurity Forum held in Riyadh, as building trust via a global partnership is key, according to an official.

Speaking during a panel session at the event, the Minister of State for Foreign Affairs, Adel Al-Jubeir, highlighted the Kingdom’s proactive stance in building international trust in the digital space.

“There are areas where that can be used in order to build confidence, and that confidence helps us work better with each other,” Al-Jubeir said.

He added: “Because one, I understand two issues, one on the protection of children, and one on the empowerment of women. I don’t believe anyone on this globe can not appreciate and support the importance of protecting our children from evil on the Internet.”

Al-Jubeir pointed out that cybersecurity is no longer just a technical issue but a crucial factor in attracting investment. 

“When investors look at countries, they look at cybersecurity. It’s become now one of the main, if not the main issue,” he said. 

Al-Jubeir continued: “Would you invest in a company in which you cannot use the Internet safely? Of course not, so this is an incentive for countries to do something about enhancing and protecting their networks.”

Adding to the discussion, the former Indian Minister of Foreign Affairs, Shyam Saran, underlined the urgency of keeping pace with the quick advancements in cyber technology. 

“The speed of change is so rapid that states are constantly playing catch-up, both in terms of domestic laws and international agreements,” he said. 

Saran added: “Because of the speed of change that is taking second here you have a technology which is, in fact, in the nature of what I would call a multiplicator. That is, it has an impact across various domains.”

He highlighted that cybersecurity impacts multiple sectors, including defense and energy, making collaboration even more essential.

Al-Jubeir stressed the complexities of cybersecurity compared to other global challenges, such as trade or environmental issues. 

“With cyber, a single individual sitting in a dorm room can wreak havoc on a nation’s electricity system, banking system, or defense system,” he said. 

This global nature of cyber threats, he explained, necessitates a collaborative effort among nations to develop a unified framework of laws and procedures that protect cyberspace.

This proactive approach is part of Saudi Arabia’s broader strategy to position itself as a responsible global actor, connecting continents through its strategic geographic location. 

“Our policy has always been about connectivity — whether it’s data lines, sea lanes, or air traffic. We are cognizant of the responsibilities and opportunities our position offers the global community,” Al-Jubeir said. 

He added: “Saudi Arabia is all about bridge building. Just look at our geographic location cases between three continents: Asia, Africa, and Europe. The more bridges we build, the more connectivity we have, whether that connectivity is shipping, whether it’s data lines, whether it’s cyber, whether it’s thought connectivity.”

Additionally, the minister underscored the comprehensive nature of the Kingdom’s approach to cybersecurity, which aligns closely with its Vision 2030 initiative. 

This sweeping reform plan aims to diversify the economy and create a secure digital environment conducive to technological innovation and investment.

Al-Jubeir highlighted how the digital age has transformed global job creation and industries, making it easier for countries to benefit from outsourcing through cyber technologies.

“In the past, nations hosted call centers which created jobs and spin-off industries,” he said, adding that today’s technologies, such as 3D printing, enable production across borders, creating even more opportunities. However, he warned that these advantages will only be realized by countries that establish a solid legal framework and secure their networks from vulnerabilities.

Al-Jubeir pointed to Saudi Arabia’s Vision 2030 as a prime example of a comprehensive reform initiative that integrates economic and social development with a focus on cybersecurity.

“What we have done in Saudi Arabia when you look at Vision 2030 is very comprehensive,” he said. The minister emphasized the importance of ensuring every aspect of society is connected and protected from cyber threats, stressing that even a single weakness in the system could lead to widespread disruption.

Reflecting on the need for agility in the digital economy, Al-Jubeir urged nations to be quick and adaptable to maintain their competitive edge. 

“If you’re not quick on your feet and comprehensive, you’re going to lose, and you are going to forfeit opportunities,” he said. 

Al-Jubeir also emphasized the importance of global collaboration in cybersecurity, advocating for shared baselines and codes of conduct that will help create a secure international framework. 

He added: “Very optimistic that we can get there, but the key is to get globally everyone to think in terms of baselines.”


Democratizing cybersecurity expertise crucial to counter AI-fueled digital crimes: Microsoft executive

Democratizing cybersecurity expertise crucial to counter AI-fueled digital crimes: Microsoft executive
Updated 03 October 2024
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Democratizing cybersecurity expertise crucial to counter AI-fueled digital crimes: Microsoft executive

Democratizing cybersecurity expertise crucial to counter AI-fueled digital crimes: Microsoft executive

RIYADH: Democratizing cybersecurity expertise is essential to combat the rising threat of digital crimes fueled by AI tools, according to Joy Chik, president of Identity and Access Network at Microsoft.

In an interview with Arab News during the Global Cybersecurity Forum in Riyadh, Chik emphasized how AI can help bridge the workforce gap in cybersecurity.

In the first quarter of 2023, Microsoft reported a staggering tenfold increase in password-based attacks on cloud identities, escalating from 3 billion to over 30 billion per month.

The company also detected approximately 6,000 attempted cyberattacks daily over the past year, which included phishing scams and sophisticated nation-state-backed attacks targeting critical infrastructure.

“So, I think to address that, one way is to democratize the expertise in security, and that’s when Gen AI, what Microsoft would produce — the kind of copilot for security. These are the tools so that you can have the skill set to democratize and have more people enabled to leverage these tools to combat cybercrime,” Chik said. 

She added that AI can help alleviate the shortage of skilled labor in the industry. “Earlier, I talked about whether we have a shortage of cybersecurity labor, skilled laborers, if you will, and expertise, and AI is a way to democratize that.”  

“I do think it is really important that we’re not just on the defense, but also move to the offense,” Chik said. “When I say offense, it’s about secure by design, secure by default, and how we can defend against supply chain attacks.”  

Chik explained that threats range from “probably the simplest, which is attacking your credentials, passwords, or identity, to phishing attacks, and to more sophisticated, nation-state-sponsored ones, like targeting critical infrastructure.” She emphasized Microsoft’s commitment to enhancing security measures based on insights gained from real-world incidents, noting that a key aspect of the company’s Secure Future initiative is not only addressing immediate needs but also promoting a security-first mindset and culture.

Chik also highlighted Microsoft’s efforts to move toward a password-free future, stating, “We all know passwords are not secure, and yet they’re the most common way for people to log into their online services. How can we provide a simple yet more secure method for identifying individuals without requiring them to remember passwords?”

One proposed solution is passkey technology, a multi-factor authentication method developed in collaboration with Microsoft, Google, Apple, and other industry leaders.

“That is a phishing-resistant multi-factor authentication that does not require a password at all. At the same time, it uses your mobile phone, for example, but saves your credentials in a safe manner so they cannot be easily phished,” she concluded. 


Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium
Updated 03 October 2024
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Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

Qiddiya awards $1bn contract for Prince Mohammed bin Salman Stadium to Saudi-Spanish consortium

JEDDAH: Saudi Arabia’s project developer Qiddiya Investment Co. has awarded a Spanish consortium an SR4 billion ($1 billion) contract for the Prince Mohammed bin Salman Stadium initiative. 

The agreement was granted to the company FCC Construction and the Kingdom’s leading contracting firm Nesma & Partners for the building of the sports facility at the project on the outskirts of Riyadh.

With the US-based architect Populous as the undertakings consultant, the contract covers the construction of a multipurpose stadium on top of the 200-meter-high Tuwaiq cliff in the new sports and entertainment district within the city, according to media outlet MEED.

In July, Saudi Arabia submitted its official bid to host the 2034 FIFA World Cup at a ceremony organized by the Federation Internationale de Football Association, known as FIFA, in Paris, France. The official announcement of the host nation for the tournament will be made on Dec. 11.

The new project marks a significant milestone in the realization of Vision 2030, aimed at enhancing tourism, generating thousands of jobs, boosting the national economy, and increasing annual visitors to the Kingdom by 1.8 million football fans and an additional six million drawn to non-football events.

The stadium’s design allows for multipurpose use, with the entire pitch capable of being transformed within hours to host various sporting and entertainment events, including rugby, boxing, and mixed martial arts, as well as esports championships, exhibitions, and concerts.

The facility will be built in the heart of Qiddiya, just 40 minutes from Riyadh, atop one of Tuwaiq Mountain’s peaks at an elevation of 200 meters, according to the Saudi Press Agency.

With a seating capacity of over 45,000, it is expected to attract international visitors with its innovative design and unique technological offerings, creating an immersive experience for guests. 

Among its features are retractable flooring, a foldable roof, and a movable upper wall that can open, revealing views of the lower city, home to key attractions like Six Flags Qiddiya and the water park.

The sports facility’s exterior frame, selected interior walls, and roof will also be covered with 1.5 km display screens. 

A standout feature of the stadium is its advanced climate control system, which will enable year-round events without excessive energy consumption. This will be achieved through an eco-friendly cooling lake located beneath the stadium, where rainwater collected from the surrounding area will be pumped into an ice wall to cool the air entering the central conditioning system.

Earlier in 2024, the investment company announced the launch of the stadium, which is set to be one of the world’s most prominent. 

The announcement followed Crown Prince Mohammed bin Salman’s unveiling of Qiddiya’s urban master plan and global brand, positioning it to become a leading destination for entertainment, sports, and culture globally.


Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s
Updated 03 October 2024
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Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

Saudi Arabia’s non-oil GDP expected to grow 5.5% from 2025 to 2027: Moody’s

RIYADH: Saudi Arabia’s non-hydrocarbon real gross domestic product is set to grow between 5 and 5.5 percent from 2025 to 2027, driven by increased government spending, a new analysis showed. 

In its latest report, US-based credit rating agency Moody’s stated that this growth marks an improvement from the 4.6 percent growth recorded in 2022-2023 and the modest 1.5 percent seen between 2017 and 2019. 

The Kingdom’s efforts to strengthen its non-oil sector align with the strategic objectives of Vision 2030, which aims to diversify the economy and decrease reliance on crude oil revenues. 

Moody’s emphasized that sustained government spending will be essential to support economic diversification initiatives. 

“While we expect non-hydrocarbon economic activity to remain robust, downside risks to oil prices and production levels will amplify the trade-off between implementing diversification projects and maintaining a robust fiscal position and sovereign balance sheet,” Moody’s noted in the report. 

The recent pre-budget statement from Saudi Arabia, issued on Sept. 30, underscores the focus on advancing economic diversification and social programs, particularly under Vision 2030 and various giga-projects. 

Government spending is projected to stay high at around 30 to 32 percent of GDP during 2025-2027, consistent with recent trends. 

“The relatively high level of spending, which will likely have an increased allocation to capital expenditure, will support non-hydrocarbon economic growth and the gradual reduction of the kingdom’s exposure to long-term global carbon transition,” added the rating agency. 

Moody’s emphasized the crucial role of Saudi Arabia’s Public Investment Fund in the Kingdom’s economic diversification efforts, noting that the fund could mitigate economic challenges during periods of lower oil prices. 

“The PIF’s role may reduce some of the implementation risks to economic diversification in the event of lower oil prices and production. Continued robust growth in non-hydrocarbon private-sector activity would also provide momentum to the diversification efforts,” concluded the report. 

In a separate analysis, S&P Global recently projected Saudi Arabia’s GDP growth at 1.4 percent for this year, with an acceleration to 5.3 percent anticipated in 2025. 

According to the analysis, this growth is expected to be bolstered by the Kingdom’s diversification strategy, which focuses on enhancing the non-oil private sector and reducing reliance on crude oil revenues. 

The report also noted that potential US Federal Reserve rate cuts could benefit emerging markets like Saudi Arabia, enhancing growth fundamentals and attracting greater capital inflows.