‘We believe stability and peace are a prerequisite to prosperity,’ says Saudi minister of economy ahead of WEF

Special Faisal Alibrahim speaks to Arab News ahead of the World Economic Forum annual meeting in Davos. (AN Photo)
Faisal Alibrahim speaks to Arab News ahead of the World Economic Forum annual meeting in Davos. (AN Photo)
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Updated 20 January 2025
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‘We believe stability and peace are a prerequisite to prosperity,’ says Saudi minister of economy ahead of WEF

‘We believe stability and peace are a prerequisite to prosperity,’ says Saudi minister of economy ahead of WEF
  • Global economy needs a more stable Middle East, Faisal Alibrahim said ahead of World Economic Forum annual meeting in Davos
  • The Saudi minister of economy and planning discussed FDI inflow, giga-projects and need for “common ground”

RIYADH: A stable Middle East is crucial for global prosperity, according to the Saudi minister of economy and planning, who also underlined the Kingdom’s commitment to being a reliable partner for economic growth.

Speaking to Arab News ahead of the World Economic Forum annual meeting in Davos, Switzerland, Faisal Alibrahim said: “We believe in stability and peace as a prerequisite for prosperity, and we believe in the global economies’ need for a more stable Middle East.”

He emphasized that the Kingdom’s own transformative journey plays a significant role in fostering regional stability and prosperity.

“We see our role internally, in unlocking our potential as an economy and society. (We also see) its clear and direct impact on the region’s stability and prosperity,” he said.




The WEF annual meeting will focus on geopolitical shocks, living standards and energy transition among other challenges. (WEF photo)

Alibrahim conveyed a message of confidence and reassurance. “The message that I would share on top of that is that the Kingdom is a long-term, reliable partner, and will always work toward shaping a prosperous future,” he said.

“If you keep that in mind, and then you keep in mind the opportunities that are being created in the Kingdom with this transformation, you’ll see that there is no better place to invest for results, both commercially and financially but also from an impact point of view, than the Kingdom today.”

He encouraged investors to recognize the significant opportunities that the Kingdom’s transformative journey presents.

Attracting foreign investment

Alibrahim emphasized the Kingdom’s commitment to attracting $100 billion in foreign direct investment (FDI) by 2030, but stressed that the focus is on attracting high-quality, long-term, value-creating investments that contribute significantly to the Kingdom’s economic growth and development.

“Our target is still 5.7 percent of GDP in 2030, which amounts roughly to $100 billion of inflow in 2030. That’s why the National Investment Strategy was launched, and since it was launched, we’ve been exceeding our yearly targets, consistently,” he said.

While acknowledging the challenges, Alibrahim expressed confidence in achieving this target, saying: “This is a long-term journey and we need to continue working with our partners, continue working intra-governmentally to figure out more ways where we can make sure that the momentum we have in attracting foreign capital will continue.”




Faisal Alibrahim discussed attracting investment into the Kingdom and how the economy can be shielded from shocks with Arab News ahead of the World Economic Forum annual meeting in Davos. (AN Photo)

He highlighted the importance of continuous policy refinement and a proactive approach to identifying and addressing potential roadblocks.

Acknowledging the recent trends in FDI inflows, Alibrahim noted that while 2023 saw figures exceeding initial targets, the first three quarters of 2024 showed a slight decline to around SR17 billion. “We’ll continue to monitor how it progresses, and see what the latest numbers are,” he said.

However, he emphasized that these figures should be viewed within the context of a long-term trajectory. He pointed out that many of the transformative projects undertaken as part of Vision 2030 have long lead times, and their impact on FDI inflows will become increasingly evident in the coming years.

Our target is still 5.7 percent of GDP in 2030, which amounts roughly to $100 billion of inflow in 2030.

Reiterating the Kingdom’s commitment to creating a conducive environment for foreign investment, he said: “The Kingdom’s approach to unlocking its potential, involves really rewriting the economic playbook.”

He added: “This is not just about investments or the government spending money. This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government. Tomorrow, ultimately, we want the private sector to lead it.”

This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”

The Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.

Emphasizing the importance of private-sector engagement, Alibrahim said: “Many laws are being revised. Many laws are being taken to public consultation, and at the heart of all of this is engagement with the private sector and with investors to understand that these laws and the reforms and the regulations, as they evolve, are exactly, what is needed.”

Shielding economy from shocks

Alibrahim acknowledged the inherent challenges posed by the interconnected nature of the global economy. “It’s important to keep in mind that we are shifting the structure of the Saudi economy,” he said. “We’re shifting from an economic structure that relied heavily on oil inflows for its economic activity, to one where we will continue to rely on inflows, but not in the same manner.”

This fundamental shift, according to him, is crucial for mitigating the impact of external shocks and building a more resilient economy.

Highlighting the encouraging growth of the non-oil sector as evidence of this ongoing transformation, he said: “Non-oil activities today represent 52 percent of our total real GDP. Non-oil growth for the last three years on average is 6 percent.

“Our ambition is to take it even further. We are closing 2024 with non-oil growth at 3.9 percent. (In) 2025, we project it to be 4.8 percent. (In) 2026, the Ministry of Economy and Planning projects it to be 6.2 percent.”

He said these figures demonstrated the Kingdom’s progress in restructuring its economy in the right direction.

According to Alibrahim, however, navigating the complexities of the global economy requires a proactive and adaptable approach. “As we shift, whatever plays into our risk assessment is shifting as well,” he said. “In the past, anything that affected the oil market will directly affect our ability to operate as an economy. Today that is shifting.”

He emphasized the importance of continuous monitoring and proactive risk assessment to anticipate and mitigate potential challenges. “The name of the game, in our view, is agile policymaking, more engagement and more institutional capabilities, engaging with all constituents, being agile in decision-making and continuously investing in your institutional capabilities so that you can have better quality policy responses,” he said.

Of ambition and prudence

Acknowledging the ambitious nature of the Kingdom’s giga-projects, Alibrahim emphasized the need for a balanced approach. “What’s critical is to keep in mind that to achieve vision 2030, we started the planning with confidence like you said, but also delivering with optimism, and we believe optimism is a choice,” he said.

“It’s a decision. It’s a design input. It’s not just a gut or emotional reaction or a feeling, but more importantly, managing with prudence.”

He cited the impressive growth of the tourism sector, exceeding initial targets, as a testament to the Kingdom’s ability to effectively plan and execute ambitious initiatives.

“We had the target of 100 million visitors in 2030. We reached 100 million seven years early. Today, that number has been increased to 150 million.”




The Kingdom surpassed its target of 100 million visitors in 2023. 

This remarkable achievement demonstrates the Kingdom’s capacity to successfully plan, implement and even surpass ambitious goals, according to Alibrahim.

Still, he reiterated the need for evaluation and adjustments. “On top of that, we wanted to make sure as we got more knowledgeable and are aware of how to manage the economy and economic management, we don’t want to create value leakage like what happened before in the 1980s,” he said.

“We also don’t want to overheat the economy and create an inflation environment that might hurt the private sector, the existing private sector or other players outside of these projects, so a decision to revisit how fast we go without really affecting the pace and scale of overall Vision 2030 was looked at.”

These adjustments reflect a commitment to responsible and sustainable development, according to Alibrahim.

He recognized that while the tourism sector has exceeded expectations, other factors, such as the emergence of new projects, necessitate a careful review of timelines and resource allocation.

“In parallel, new inputs came in. We won hosting the Asian Cup for 2027, Asian Winter games in Trojena 2029, World Expo 2030, World Cup 2034. We’re hosting the world twice in four years very soon,” he said.




World Expo 2030 takes place from Oct. 1, 2030, to March 31, 2031 in Riyadh. (X: @bieparis)

These new opportunities, while exciting, require careful consideration and integration into the overall development plan, according to Alibrahim.

“We just concluded for the first time a long-term fiscal exercise,” he said. “We decided to shift things. There is agility in decision making, there is prudence in management, and we’re not ashamed to talk about that.”

To ensure the successful and sustainable execution of these ambitious projects, Alibrahim stressed the importance of quality and sustainability. “We need to make sure that the optimal value creation for the local economy (and) minimizing the impact of creating an inflationary environment on the economy as well as in the private sector and then using innovation and using these opportunities to invite quality investors and quality partners that can come in and set up shop,” he said.

He also underscored the need for clarity and transparency in these large-scale projects. “For the first time in a long time, we do have clarity on the types of projects that we will have and what kind of partners we need, which is clarity that the private sector always seeks,” he said.

This clarity, in his opinion, creates an opportunity to attract international partners with the expertise and resources to deliver high-quality infrastructure projects while maximizing knowledge transfer and minimizing risks. “Infrastructure in general is a sector that we see will be witnessing a lot of investment in the Kingdom,” he said.

Saudi Arabia heads to Davos

Saudi Arabia’s delegation to the WEF annual meeting in Davos this year will feature for the first time a “Saudi House.” This centralized hub will serve as a meeting point for government officials, business leaders and other stakeholders participating in the forum.

Saudi House was designed to bring together all the government entities that are participating in Davos in one convenient location, Alibrahim said.

Using this opportunity to create a positive impact on the global economy, he will champion a key call in Davos for global leadership to move beyond tepid economic growth and embrace a more ambitious, “intrepid leadership-led” approach.




(Saudi MEP illustration image)

Rewriting the economic playbook: A new era of growth

Alibrahim spoke of the importance of realizing that the Kingdom’s approach to unlocking its potential involves “rewriting the economic playbook.”

This ambitious undertaking extends beyond attracting investment; it’s about cultivating a dynamic and vibrant ecosystem that attracts both capital and talent, according to him.

“This is not just about investments or the government spending money,” he said, elaborating the point. “This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government.”

This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”

He said the Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.




During the interview with Arab News, the minister underlined the Kingdom’s commitment to being a reliable partner for economic growth. (AN Photo)

A global growth platform

Alibrahim asserted that Saudi Arabia has emerged as a leading global growth platform. “What’s critical for us is the strengths that the Kingdom has in the past,” he said.

He highlighted a key differentiator, saying: “Every country has its strengths, and we need to build on these strengths to transform.”

He explained that while many countries rely primarily on either natural resources or human capital, the Kingdom possesses a unique advantage by leveraging both. This unique combination of abundant natural resources and a dynamic human capital base sets the Kingdom apart from many other emerging markets.

Furthermore, he emphasized the Kingdom’s strategic advantages. “We have a large land area that can be leveraged for (diverse) projects, including AI. We have access to natural resources, specifically cleanest hydrocarbon energy globally, but also renewable energy of the cheapest wind and solar globally delivered by the private sector.

“We also have green hydrogen investments working on blue hydrogen, working on many other sources,” said. These abundant and diverse energy resources provide a strong foundation for sustainable economic growth and attract significant investment in clean energy technologies.

Sixty-three percent of the population is below the age of 30, a young and dynamic population full of optimism and full of energy.

Alibrahim also highlighted the Kingdom’s human capital as a key driver of growth. “We also have access to a talent pool that is today Saudi based,” he said. “Sixty-three percent of the population is below the age of 30, a young and dynamic population full of optimism and full of energy.”

He drew attention to the Kingdom’s strategic location and its growing global influence. “Keep in mind the Kingdom’s location connecting three continents and the Kingdom’s leadership role in the global issues, also connecting the world and helping the world to shape a more prosperous future,” he said.

Strategic partnerships

The growing significance of strategic partnerships with leading global financial institutions is an important aspect to consider, according to Alibraim. “The Kingdom today is a global investment powerhouse that’s leveraging on its diplomatic determination, economic potential, resources with natural and human,” he said.

While the Kingdom has long-standing relationships with many global financial institutions, the nature of these partnerships is evolving.

“What’s different today is that we’re seeing a lot of these firms when we talk about investment firms, we’re looking at the Kingdom as not just a source of capital, but as a capital of opportunities,” he said.

HIGHLIGHTS

Leading global financial institutions are increasingly recognizing the Kingdom not just as a destination for investment, but as a partner in growth and development.

Almost 571 multinational companies have signed to re-establish their or establish the region headquarters in the Kingdom well beyond our targets for 2030, six seven years ahead of schedule.

He maintained that leading global financial institutions are increasingly recognizing the Kingdom not just as a destination for investment, but as a partner in growth and development. “They want to invest in the Kingdom,” he said.

He also mentioned the growing confidence of international investors in the Kingdom’s economic transformation. “Almost 571, if I’m not mistaken, multinational companies, investment and otherwise, have signed to re-establish their or establish the region headquarters in the Kingdom well beyond our targets for 2030, six seven years ahead (of schedule).”

This significant influx of multinational companies serves as a powerful testament to the growing attractiveness of the Kingdom as a business and investment hub, he added.

Alibrahim reiterated the long-term nature of these partnerships and the Kingdom’s commitment to fostering mutually beneficial collaborations. “But more importantly, the Kingdom has always been and will continue to be a long-term, reliable partner, so what’s happening in the Kingdom is going to create a lot of opportunities for anyone who wants to come and truly shape what the future looks like,” he said.


ALSO READ: Saudi Arabia exceeds HQ target with 540 international firms in Riyadh, says Al-Falih


Saudi leadership imperatives

When asked about successful leadership, Alibrahim outlined three key imperatives: a long-term vision, unwavering optimism, and a commitment to building strong institutions.

He spoke of the importance of a long-term perspective, saying: “In the Kingdom, when we started with Vision 2030, it came from a long-term view, and I’m going to always refer to the vision as an evidence and example because we’re living it, so the first thing is having a long-term horizon and continuously thinking with a long-term view,” he said.

Today in the Kingdom, Vision 2030 has been going on for eight years, and it still feels like the same energy momentum as when it was launched.

According to him, this long-term vision serves as a guiding principle, ensuring that all decisions and initiatives are aligned with the Kingdom’s overarching goals and aspirations.

Furthermore, Alibrahim pointed to the importance of clarity in the planning and effective communication in driving progress. “This is a day-in, day-out exercise that we need to continue living in order to be in a better position to achieve our ambitions,” he said.

“Today in the Kingdom, Vision 2030 has been going on for eight years, and it still feels like the same energy momentum as when it was launched. In fact, maybe some people say it’s even more energy and more momentum.”

Finally, Alibrahim highlighted the crucial role of strong institutions in supporting sustainable development and long-term prosperity. “To continue investing in building institutional capabilities. This is a long-term investment. This is something that will serve the generations to come. Stronger institutions mean better economic performance,” he said.




Saudi Arabia is on track to achieve the United Nations' Sustainable Development Goals. (Photo courtesy of Monshaat.gov)

A common ground

The importance of finding and fostering common ground in an increasingly interconnected yet fragmented world was pointed out by Alibrahim.

“We were in Berlin a few months ago. The theme was Common Ground. We talked about it in Davos two or three years ago. In the blog post, we pushed the common ground is what keeps people at the table, and we need to make sure we maintain that common ground and fight for protecting that common ground, but also work constructively to grow it,” he said.

According to Alibrahim, the global landscape is evolving with increasing trade fragmentation and a shift away from hyper-globalization. “The world is shifting,” he said. “There is more trade fragmentation. Hyper globalization has ended. Today we have a new kind of globalization.”

This new reality necessitates a renewed focus on dialogue and collaboration, he said, adding: “All this means that dialogue is going to be essential, and at the heart of the dialogue is keeping our mind on what we have in common and how we can grow that as we move forward.”

 

 


NUPCO secures $667m in financing to boost Saudi healthcare supply chain

NUPCO secures $667m in financing to boost Saudi healthcare supply chain
Updated 12 February 2025
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NUPCO secures $667m in financing to boost Saudi healthcare supply chain

NUPCO secures $667m in financing to boost Saudi healthcare supply chain

RIYADH: Saudi Arabia’s National Unified Procurement Co. has secured three significant financing agreements totaling SR2.5 billion ($666.6 million) to strengthen supply chain financing for healthcare suppliers.

In an interview with Arab News at the PIF Private Sector Forum, NUPCO’s Chief Commercial Officer Khalid Al-Ghamdi said that the agreements were made with prominent financial institutions, including Banque Saudi Fransi, Abu Dhabi First Bank, and Tameed. These partnerships are designed to provide suppliers with better access to capital, enabling them to meet the increasing demand for medical supplies across Saudi Arabia.

The company signed an agreement worth SR500 million with Banque Saudi Fransi to finance the supply chain in health care. “It’s for the suppliers,” Al-Ghamdi said.

Another agreement with Abu Dhabi First Bank is worth SR1 billion to enable “our suppliers to take financing throughout these agreements and making sure that they are really overcoming all the financing challenges that they might have.”

The agreement signed with Tameed is worth SR1 billion to support small and medium enterprises within the healthcare sector.

“Tameed is looking after the SMEs, where we are trying as much as we can to make them enabled and grow within the sector of the healthcare as well,” Al-Ghamdi explained.

NUPCO, formerly dedicated to serving public hospitals, is now expanding its services to the private healthcare sector.

Al-Ghamdi highlighted that the company’s healthcare logistics and digital solutions will now be available to private hospitals, clinics, and small and medium-sized enterprises.

“What we discovered is that, up until the post-COVID period, NUPCO was primarily focused on providing services to the public sector, as that was our main priority and mandate,” he said.

Al-Ghamdi added: “However, we soon realized that the private sector is an integral part of the healthcare ecosystem. The ongoing transformation in healthcare will eventually lead to a shift, with the privatization efforts making even the public sector more aligned with private sector dynamics.”

A central component of this expansion is the introduction of a new digital healthcare marketplace, scheduled to launch by the end of the first quarter of 2025—just one month away.

This innovative platform will enable private clinics and SMEs to purchase medical equipment and supplies seamlessly, while also offering tailored financing solutions. By doing so, it aims to simplify access to advanced medical infrastructure, empowering healthcare providers to enhance their capabilities and improve patient care.

“For example, a small clinic wants to buy a dental chair or a laser machine. They can go through the marketplace and find financing solutions over there, and instead putting their capital in one asset like one chair or one laser machine, they can go for five or six, as much as they can,” Al-Ghamdi stated.

Enhancing Kingdom’s healthcare logistics

The financing agreements are a key element of NUPCO’s comprehensive strategy to bolster the healthcare sector’s logistics and procurement infrastructure. As a wholly owned subsidiary of the Public Investment Fund, NUPCO is at the forefront of driving Vision 2030’s healthcare transformation by optimizing the distribution of medical supplies throughout the Kingdom.

In a significant move to further this mission, NUPCO unveiled five strategic partnerships with global logistics leaders—DHL, SMSA, and UPS—during the PIF Private Sector Forum.

These collaborations are designed to strengthen and expand medical supply distribution networks, ensuring efficient and reliable delivery of critical healthcare resources across Saudi Arabia.

This initiative underscores NUPCO’s commitment to advancing the Kingdom’s healthcare ecosystem and supporting its long-term economic and social goals.

“We are making sure that all of them is alliances that we build our relationship to make sure that we extend the services all the way to their businesses,” said Al-Ghamdi.

Additionally, NUPCO forged a strategic partnership with the Saudi Authority for Industrial Cities and Technology Zones, the Kingdom’s largest operator of industrial cities, to support future logistics expansion and enhance operational capabilities. This collaboration aims to leverage MODON’s extensive infrastructure and expertise to further streamline healthcare logistics.

Furthermore, NUPCO signed an agreement with Monsha’at, Saudi Arabia’s Small and Medium Enterprises General Authority, to integrate SMEs into its supply chain ecosystem.

This initiative is designed to empower smaller businesses by providing them with opportunities to contribute to the healthcare sector, fostering economic growth and aligning with Vision 2030’s goals of diversifying the economy and supporting local enterprises.

Preparing for the future

With Saudi Arabia’s healthcare sector experiencing rapid growth, NUPCO is strategically scaling its logistics network to keep pace with rising demand. The company plays a pivotal role in the Kingdom’s healthcare ecosystem, currently supporting over 300 hospitals and 2,500 clinics.

This extensive reach ensures that 97 percent of Saudi Arabia has access to essential medical supplies and services.

“We are forecasting that between now and 2030, there will be additional more than between 26,000 to 43,000 extra beds that’s going to be in the market,” said Al-Ghamdi, adding that major events such as the World Cup 2034 and Expo 2030 will further drive demand for healthcare services.

As part of its ambitious expansion strategy, NUPCO is investing heavily in advanced logistics infrastructure, including the development of two cutting-edge warehouses slated to become operational by 2026. These state-of-the-art facilities will further enhance the company’s capacity to meet the growing demands of Saudi Arabia’s healthcare sector.

NUPCO’s nationwide distribution network is already a cornerstone of its operations, boasting over 2,600 delivery points and ensuring an impressive 8-hour delivery window for medical supplies within a 100-km radius of its warehouses. This efficiency underscores NUPCO’s commitment to reliability and speed in serving healthcare providers across the Kingdom.

Through its latest strategic agreements and initiatives, NUPCO is solidifying its role as a critical enabler of Saudi Arabia’s healthcare transformation.

By supporting both public and private sector growth, the company is driving the development of a robust, efficient, and cost-effective medical supply distribution system.


Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia
Updated 12 February 2025
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Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

Rocco Forte Hotels eyes strategic locations for expansion in Saudi Arabia

RIYADH: Rocco Forte Hotels is considering expansion into Saudi Arabia, eyeing potential locations along the Red Sea and in Riyadh, according to the company’s executive chairman.

In an interview with Arab News on the sidelines of the third PIF Private Sector Forum in Riyadh on Wednesday, Rocco Forte, who is also the company’s founder, confirmed that while details of the Red Sea project are still under wraps, the firm is actively evaluating opportunities in the Kingdom.

“Obviously, with PIF (Public Investment Fund) investing in us, we completed the deal last January and we’re starting to become active and looking seriously at things here (in Saudi Arabia),” Forte said.

Forte highlighted the company’s partnership with PIF, which began in 2023 and involved the acquisition of a 49 percent stake by the Saudi fund.

The luxury hotel group, renowned for its properties typically ranging from 80 to 120 rooms, is targeting strategic locations in the Kingdom that align with its brand values.  

“For example, Diriyah would be an ideal place for us, and then one or two other areas in Riyadh,” Forte said. While the company’s current projects in Saudi Arabia are tied to PIF, he expressed openness to collaborating with private local investors in the future. 

“We haven’t been here long enough to start talking to a lot of private investors, but it’s obviously something we’d like to do and explore the possibilities there,” he stated. 

Forte emphasized that the investment from PIF has significantly raised the company’s global profile and strengthened its financial position. 

“PIF made a large investment in my company, and it was a very high-profile deal, it raised our visibility around the world in a way that wasn’t the case before,” he said. 

He also praised PIF’s long-term investment approach, aligning with Rocco Forte Hotels’ family-owned business model. 

“Many funds who invest in hotel companies and so on have a very short vision,” he said, “PIF is a different type of investor, and it very much coincides with my vision,” he added. 

In addition to its plans in Saudi Arabia, Rocco Forte Hotels is broadening its global footprint, with five new hotels currently under development in Italy, including an upcoming property in Milan scheduled to open in November.

The company is also exploring growth opportunities in Spain, Greece, and the US, driven by robust demand from American travelers.

Forte also noted emerging trends in Saudi Arabia that are shaping the luxury hospitality sector, such as the growing popularity of multi-generational family travel and the increasing convergence of business and leisure trips.

“There’s a lot of business travel where people are either adding a few days at the beginning or end for leisure. That’s very prevalent now,” he observed, underlining that while business travel has not fully returned to pre-pandemic levels, new patterns are emerging. 

Reflecting on Saudi Arabia’s tourism transformation, Forte described the scale of development as unprecedented. 

“If you’re outside Saudi Arabia, you don’t realize what is going on here,” he said. “Nothing like this has ever been attempted anywhere in the world. They’re developing 20 different destinations, and there’s an energy and dynamism which I think has captivated all the people.” 


Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch

Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch
Updated 12 February 2025
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Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch

Ceer supercharges Saudi EV industry with $1.4bn in deals, gearing up for 2026 launch
  • More than 80% of the agreements involve Saudi companies, reinforcing Ceer’s commitment to its 45% localization target
  • Ceer’s business plan extends through 2034, with the KAEC plant set to ramp up production in phases

RIYADH: Saudi Arabia’s first homegrown electric vehicle brand, Ceer, signed 11 deals worth SR5.5 billion ($1.4 billion) at a Public Investment Fund event ahead of its model launch in 2026

More than 80 percent of these agreements involve Saudi companies, reinforcing Ceer’s commitment to its 45 percent localization target and advancing the Kingdom’s Vision 2030’s economic diversification goals.

Among the key memorandums of understanding signed at the PIF Private Sector Forum are agreements related to heating and air conditioning, portable EV chargers and various manufacturing aspects, such as plastic injection parts.

In an interview with Arab News on the sidelines of the event, Jim DeLuca, CEO of the company, said: “At Ceer, we say we’re not just starting a car company. We are igniting the automotive industry,” he said.

DeLuca highlighted that Ceer is the only company in Saudi Arabia managing the entire process — from designing and engineering to manufacturing, selling, and servicing a portfolio of battery electric vehicles.

He highlighted the King Abdullah Economic City manufacturing plant, a cutting-edge facility capable of producing 38 jobs per hour with integrated shops for press, body paint, and general assembly. “You can’t have an automotive ecosystem without a local supply base, so we’ve attracted some of the best global tier-one suppliers, they too are joining us in KAEC, and so we’re developing this whole ecosystem.”

DeLuca outlined Ceer’s strategic supply chain approach, explaining how global tier-one suppliers produce key components and subassemblies that will be shipped into the plant on schedule.

“We’re talking about things like front-rear subframes, interiors, front-rear fascias, body components, but that’s only the beginning. Those tier ones need a tier-two supply base, and many of today’s announcements are tier-two suppliers who will provide smaller parts and components to the tier ones, who will then supply to us just in time,” he explained.

Ceer’s localization efforts ensure an efficient, cost-effective supply chain. “This is a capital-intensive, low-margin business, you need a laser-like focus on the strategic elimination of waste,” the top official said.

He added: “One of the ways you do that is by having your supply base right next to the plant. And because we’re in KAEC with Lucid and Hyundai, and hopefully one day others, that’s the type of volume these suppliers need to have a very positive business case.”

Ceer was announced in November 2022. File

Scaling up production and Saudi’s automotive future

Ceer’s business plan extends through 2034, with the KAEC plant set to ramp up production in phases. “In 2024, we started plant construction. In 2025, we will install process equipment — press, body paint, general assembly. Then, at the beginning of 2026, we start validation builds, moving from non-salable to salable.”

DeLuca revealed that by the last quarter of 2026, Ceer will be up and running, producing its first two aspirational vehicles for sale in Saudi Arabia.

The CEO also emphasized the importance of the King Salman Automotive Cluster, which serves as the industry umbrella for KAEC’s expanding automotive sector. Ceer has secured contracts with major tier-one suppliers, including Lear, Forvia, and Shinyoung, as well as Benteler, and JVIS, to localize key vehicle components. 

“These are global tier-ones, and we already have contracts with them. They haven’t been formally announced yet, but we’re talking about front-rear subframes, interiors, exterior body components, and sheet metal components — all large, complicated, and expensive to ship, so co-locating with the assembly plants is the right strategy,” he added.

Advancing charging infrastructure and market adoption

Addressing adoption challenges facing the sector, DeLuca pointed to PIF’s EV infrastructure initiative, EVIQ, which is deploying charging stations across major Saudi cities. 

“A lot of people have anxiety when considering a battery electric vehicle. What gives them comfort is a strong charging infrastructure. EVIQ is rolling out charging stations in Riyadh, Jeddah, Dammam, and beyond to ensure a seamless transition as we ramp up production,” he said.

Ceer plans to introduce seven vehicle models, spanning the E, D, and C segments, including sedans and SUVs, from 2026 to 2029. 

Ceer’s growth strategy and future outlook

Ceer’s assembly complex is designed for an annual capacity of 240,000 units and is fully funded, according to the CEO. 

“Our current business plan is fully funded through 2034 between our shareholders and other financial instruments. I think the vision of any company is eventually, potentially to have an IPO (initial public offering) where you can start to monetize all of the great work that has taken place, so I won’t say one day it’s not going to happen,” he added.

He acknowledged that global EV market adoption has been slower than anticipated, emphasizing that product quality, pricing, infrastructure, and incentives will drive Saudi Arabia’s transition. “The Ministry of Investment is working on ecosystem incentives to accelerate EV adoption. We see steady growth in the early days, but incentives will be key to making EVs the catalyst for Saudi Arabia’s automotive transformation.”

Ceer’s agreements and localization drive

According to a press release, agreements were signed at the event with Zamil Central Air Conditioners Co. for heating, ventilation, and air conditioning systems, Zamil Plastic Industrial Co. for plastic injection parts, Obeikan Glass Co. and Abdul Latif Jameel Enterprises for alloy wheels, and the Saudi Co. for Controls and Maintenance for portable EV chargers. 

Additional deals include Arabian Plastic Industrial Co. for blow parts, Saudi Aluminum Casting Co. for aluminum casting, First Telecom Industries for small stampings, and CTR for localizing aluminum forged parts in Saudi Arabia. 

Ceer has also partnered with 263 local companies, awarding businesses worth SR6.6 billion to firms such as Modern Building Leaders, Nahil Computer, and Bupa Arabia, as well as Atlas Industrial Equipment Co., Saudi Business Machines, and Liva Insurance.

Speaking at the forum, DeLuca underscored Ceer’s role in realizing Vision 2030’s industrial and economic diversification goals. “Over the next decade, we will attract more than $150 million in foreign direct investment, create up to 30,000 direct and indirect jobs, localize 45 percent of our product content or built material and contribute $8 billion directly to Saudi’s GDP by 2034,” he said.

The company’s manufacturing complex, a $1.3 billion facility spanning 1 million sq. meters in King Abdullah Economic City, is poised to become the largest and most technologically advanced automotive production hub in the Middle East and North Africa region. 

As part of its expansion strategy, the automotive company is set to welcome six major partners to KAEC, collectively contributing over SR50 billion in value. 

DeLuca highlighted Ceer’s commitment to localizing its supply chain, with 45 percent of its product content and built materials to be sourced within the Kingdom.

The company’s workforce has already grown to over 1,300 employees, according to the top official, with a team of global experts bringing extensive experience to drive innovation and competitiveness. 

DeLuca emphasized that strategic collaborations with leading automotive players such as Hyundai and Rimac are ensuring Ceer’s electric vehicles are technologically advanced and globally competitive.

One of Ceer’s standout features will be its industry-leading paint shop, offering an extensive color palette with over 30 shades in gloss, matte, and satin finishes, setting a new benchmark in vehicle customization.

“We’re here today at this forum as a testament to the power of collaboration and to highlight the vital role that the private sector plays in achieving all elements of Vision 2030,” DeLuca said.


OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts
Updated 12 February 2025
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OPEC sticks to 2025, 2026 global oil demand growth forecasts

OPEC sticks to 2025, 2026 global oil demand growth forecasts

LONDON: OPEC on Wednesday stuck to its forecast for relatively strong growth in global oil demand in 2025, saying air and road travel would support consumption and potential trade tariffs were not expected to impact economic growth.

In a monthly report, it said world oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026. Both forecasts were unchanged from last month.

OPEC’s view on oil demand is at the higher end of industry forecasts and it expects oil use to keep rising in coming years, unlike the International Energy Agency which see demand peaking this decade as the world switches to cleaner fuels.

In the report, OPEC said the trade policy of US President Donald Trump has added more uncertainty into markets, potentially creating supply-demand imbalances that are not reflective of market fundamentals, but it made no change to its 2025 economic growth forecast.

“It remains to be seen how and to what extent potential tariffs and other policy measures will play out,” OPEC said in the report. “So far, they are not anticipated to materially impact the current underlying growth assumptions.”

Oil was steady after the OPEC report was released with Brent crude trading lower towards $76 a barrel.

The IEA sees 2025 demand growth at 1.05 million bpd, lower than OPEC, although the gap between the two on 2025 is much smaller than it was for 2024 when the split reached a record high driven by differences over the pace of the energy transition.

OPEC+, which groups OPEC and allies such as Russia, has implemented a series of output cuts since late 2022 to support the market. Its current plan calls for oil output to be gradually increased from April.


Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan
Updated 12 February 2025
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Ma’aden to test data from Aramco warehouses to inform new mines plan

Ma’aden to test data from Aramco warehouses to inform new mines plan

RIYADH: The Saudi Arabian Mining Co., or Ma’aden, will analyze terabytes of data from Aramco’s warehouses as part of its efforts to build two mines, its CEO revealed. 

In a discussion titled “Ma’aden: Saudi Arabia’s Mining Industry Pioneer” on the first day of the Public Investment Fund Private Sector Forum, taking place from Feb. 12-13 in Riyadh, Robert Wilt explained that the company intends to test the core samples using artificial intelligence as part of its 2025 key performance indicators. 

This falls in line with the Kingdom’s goal to increase the mining industry’s gross domestic product contribution from $17 billion to $75 billion by 2035.

It also aligns well with Saudi Arabia’s efforts to establish mining as the third pillar of the nation’s industrial economy.

“We are in the process of finalizing the joint venture with Aramco to partner together to explore all of the Arabian platform. Our efforts to date have been focused on the Arabian Shield. Aramco has been exploring the platform for oil and gas now for 80 some years. They’ve got, I can’t tell you how many terabytes of data and core samples in warehouses as big as this hall that have not been tested for minerals,” Wilt said. 

“Another one of our KPIs this year is to find two mines by mining that data using artificial intelligence. So, we’re throwing technology, AI, digitization, and innovation across everything from exploration all the way through processing to reduce costs, make it more sustainable, and most of all for us is acceleration,” he added. 

 During the talk, the CEO also shed light on the fact that Ma’aden is utilizing 72 percent of its exploration budget this year on copper. 

This comes as the company has not “really spent as much time looking for the energy transition metals and some of the other minerals that we know are here,” Wilt said. 

He added: “Just this year, we’ve announced two or three major gold discoveries and we’re on the precipice of announcing two copper discoveries. So, I can tell you the minerals are here and it’s just up to us to get them out of the ground, to extract them sustainably, safely, responsibly.” 

The CEO also emphasized that the firm is only 10 to 15 years old and that it is already the third-largest exporter of phosphate fertilizers.

“We’re the fastest growing mining company in the world for the last five years and we’re the eighth-most valuable mining company in the world by market capitalization. So, a meteoric rise over the last decade and a half,” Wilt said.

He added: “We need to make this thing 10 times bigger by 2040. So, the aspiration is to not be one of the most valuable mining companies in the world — has to be the most valuable mining company in the world. It is to feed more than 10 percent of the world’s population; it is to provide the metals and minerals required for the downstream diversification across the Kingdom, whether it’s aluminum, copper, lithium, zinc.”

The CEO noted that the company estimates that there are $2.5 trillion worth of reserves buried in the sands of Saudi Arabia. 

“If you look at the $2.5 trillion, 45 percent of its phosphate, and we know where that is. We’re already mining it; we’re already producing it. It’s the biggest part of our business,” Wilt said.

“But then some of the exotic minerals like rare earth elements, you know, we’re close to being able to talk about that publicly. There’s a lot of interest in the Kingdom for some from some near-stage discoveries where we’re making there, so I would say probably 60 percent has been actively explored, and then the 40 percent we’ve got to accelerate through to the pipeline,” he added.

The forum, which will unite more than 90 PIF-backed companies, seeks to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.  

Now in its third year, the event will spotlight business opportunities with the sovereign wealth fund and its portfolio companies, identify potential prospects for investors and suppliers, and expand avenues for collaboration. It will also serve as a bridge between PIF, its portfolio companies, and the private sector, reinforcing localization efforts.