Saudi Arabia announces $14.9bn investment deals in LEAP 2025

Saudi Arabia announces $14.9bn investment deals in LEAP 2025
Minister of Communications and Information Technology Abdullah Al-Swaha said Saudi Arabia is witnessing significant growth in the tech industry. X@LEAPandInnovate
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Updated 10 February 2025
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Saudi Arabia announces $14.9bn investment deals in LEAP 2025

Saudi Arabia announces $14.9bn investment deals in LEAP 2025
  • Event attracted strategic investments in infrastructure and AI, along with startup funding rounds valued at over $10.9 billion
  • Kingdom is trying to avoid division and polarization as innovation takes center stage globally

RIYADH: Saudi Arabia has announced investments worth $14.9 billion in the technological sector on the first day of the LEAP 2025 Tech Conference as the Kingdom continues to spearhead its economic diversification efforts. 

During the event’s opening ceremony, the Kingdom’s Minister of Communications and Information Technology Abdullah Al-Swaha said Saudi Arabia is witnessing significant growth in the industry, with the number of jobs jumping from 150,000 in 2021 to 381,000 in 2024. 

LEAP 2025 is a flagship event in the Kingdom, as the nation eyes to become a global and regional tech hub, aligned with the goals outlined in the Vision 2030 program. 

“Under the leadership of His Royal Highness (Crown Prince Mohammed bin Salman), and in partnership with you, our global innovators and thinkers of the world — yet again, you keep making history in this dividing moment and announcing $14.9 billion worth of investments and announcements in this LEAP alone,” said Al-Swaha. 

“The numbers speak for themselves. As a digital economy collectively, we (MENA region) have grown by 73 percent to $260 billion in the region from 2021 to 2024. The Kingdom represents 50 percent of it. As a tech force, as His Royal Highness said this region is the new Europe,” he added.
“In terms of growth, we jumped from 150,000 tech force to 381,000 in Saudi, and as a result, the region grows,” Al-Swaha said.

Highlighting Saudi Arabia’s progress in the technological sector, the minister said his country currently has seven unicorns, while the region has 15. 

“If you look at the Kingdom alone, if you put it in the EU zone, we will be the fifth largest tech hub in Europe. If you use unicorns and startups as a proxy for growth, the region grew to 15 unicorns, and the Kingdom grew from two unicorns to seven,” said Al-Swaha. 

Major investment deals

During the event, Groq, a US-based artificial intelligence firm, announced investing $1.5 billion in its project developed in association with Saudi Aramco to launch the world’s largest AI inferencing data center in the Kingdom, following a memorandum of understanding signed in September. 

The inferencing data center is expected to play a crucial role in Aramco Digital’s vision to leverage advanced technologies that drive operational excellence and support Vision 2030. 

The event witnessed Alat, owned by Saudi Arabia’s Public Investment Fund, and Chinese tech giant Lenovo joining hands to establish an advanced manufacturing and technology center based on AI and robotics. 

Lenovo also announced the decision to establish its regional headquarters in the Kingdom. 

China-based retail and e-commerce company Alibaba said it will launch an AI empowerment program in cooperation with Tuwaiq Academy — the training arm of the Saudi Federation for Cybersecurity. 

US-based Databricks also pledged to invest $300 million over the next five years to upskill Saudi citizens, build the company’s business in the Kingdom, and contribute to the local digital economy. 

SambaNova, another US software firm, agreed to invest $140 million to build advanced AI infrastructure in Saudi Arabia.

Gulf Data Hub, in cooperation with London-based investment firm KKR, announced it will develop data centers with a capacity of 300 megawatts to strengthen the Kingdom’s leadership as a global destination for AI. 

American cloud-based software company Salesforce said it will invest $500 million in the region and establish its regional headquarters in the Kingdom. 

Chinese cloud computing service Tencent Cloud has committed to investing $150 million in local infrastructure, resources, and partnerships within the technology sector over the coming years to support Vision 2030.

The President of Google for the Europe, Middle East, and Africa region, Tara Brady, said the tech giant will contribute $70 billion to the Kingdom’s economy over the next 10 years. 

“Google is committed to the region and the Kingdom. We believe this is the future. Google is doubling down, we believe, over the next 10 years, we could be contributing $70 billion to the economy,” said Brady. 

He added: “We are going to be skilling Saudi nationals, over the next 10 years, one million. We will also scale up the Kingdom to become the number one AI provider for the world.” 

Google Cloud announced investments in digital infrastructure for AI by launching a global hub in Saudi Arabia to serve regional and global demand. 

LEAP 2025 also attracted strategic investments in infrastructure and AI, along with startup funding rounds valued at over $10.9 billion. 

Steering ahead in the intelligent age

Al-Swaha said Saudi Arabia is trying to avoid division and polarization as innovation takes center stage globally. 

“In the analog and digital world, we were talking about the Global North and the Global South. For every dollar made in the Global South, somebody makes three times to five times in the Global North, and that is not acceptable. 

“For the intelligent age, this will even go bigger, where it is projected that only a billion to two will join this exclusive club called the intelligent age, and 6.5 billion by 2030 will be left behind,” said Al-Swaha. 

He added: “I would argue that leaving anyone behind in the intelligent age is as devastating as depriving an individual from getting access to oxygen, water and food.” 

The Saudi minister said the Kingdom is trying to ensure inclusivity in the technological sector, therefore ensuring prosperity for all in the future. 

The minister also said the digital economy is currently valued at $16 trillion. However, 2.6 billion people remain excluded, including 100 million in the Global North and 2.5 billion in the Global South.

“Crown Prince Mohammed bin Salman has bet on closing down the divide of the digital age by fueling cloud, entrepreneurship, tech, for the region and the world, and this is why we are laser-focused on continuing to be the biggest success story in closing down the skills divide, digital divide, and governance divide in partnership with you,” he said. 

Al-Swaha underscored the growth of the reduction of the gender gap in the technological sector and added that women’s empowerment in Saudi Arabia’s tech industry has already surpassed the EU, G20, and Silicon Valley. 

Highlighting the necessity to avoid polarization, the minister said: “We have to celebrate the chat GPT moment of 2022, but we also have to appreciate the DeepSeek moment. The world does not need polarization in the intelligent age. We need to work collectively to celebrate these advancements, where DeepSeek so far is beating all AI models.”


Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions

Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions
Updated 12 March 2025
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Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions

Saudi Arabia invites applications for exploration permits in Riyadh, Madinah regions

RIYADH: Saudi Arabia has opened applications for pre-qualification for mining exploration licenses across three mineral-rich belts in the Riyadh and Madinah regions, covering nearly 50 percent of the total area.

This initiative spans 24,946 sq. km. and is part of the Ministry of Industry and Mineral Resources’ broader plan to offer exploration licenses for over 50,000 sq. km. in 2025, following an announcement made at the 4th International Mining Conference in January.

The ministry is inviting both local and international exploration companies to compete for these licenses, aiming to accelerate mineral exploration and development.

This move is expected to harness Saudi Arabia’s mineral wealth, estimated at SR9.3 trillion, and strengthen value-added mineral supply chains to support economic diversification, according to a ministry post on X.

The targeted mineralized belts include Nuqrah and Sukhaybrah Al-Safra in the Madinah region, as well as Nabitah in Riyadh. These areas are rich in resources like gold, copper, silver, zinc, and nickel, presenting substantial investment opportunities.

The pre-qualification application deadline for exploration licenses is set for May. To ensure transparency, geological and technical data for these sites are available on the Tadeen platform, providing investors with insights from previous licenses and geological surveys conducted by the Saudi Geological Survey Authority.

In line with efforts to streamline the licensing process, the ministry has designed this year’s mining exploration competition to be fully automated, transparent, and fair.

The process will consist of three key phases: the pre-qualification phase, which evaluates the technical capabilities of applicants; the site selection and bidding phase; and the final award and licensing phase. The pre-qualification phase began in January during the International Mining Conference and will continue until early May.

The ministry has ensured that all essential geological and technical data is accessible on Tadeen, ensuring a level playing field for all competitors, as reported by the Saudi Press Agency.

This initiative is expected to drive exploration spending, enhance the national geological database, generate new jobs, and contribute to sustainable economic growth. It also aligns with Saudi Arabia’s commitment to developing the mining sector in line with global best practices, with a focus on environmental sustainability and social responsibility.

In a related move, the Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, launched the second phase of the Mining Exploration Empowerment Program in January.

This initiative offers financial support of up to SR7.5 million per project to companies with valid exploration licenses that have been held for less than five years, according to SPA.

The program is designed to reduce risks for early-stage exploration companies, encourage investment in the mining sector, and complement existing incentives under the Mining Investment Law, which allows 100 percent foreign ownership and provides financing of up to 75 percent of capital costs through the Industrial Development Fund.

Saudi Arabia has allocated over 10,000 sq. km. for mining exploration in recent years. The upcoming 50,000 sq. km. for 2025 further underscores the Kingdom’s commitment to fostering a transparent and attractive investment environment, as reported by SPA.

This initiative plays a key role in the Kingdom’s Vision 2030, which seeks to position mining as a vital pillar of economic diversification and a driver of sustainable growth.


Egypt secures $1.2bn IMF disbursement amid reforms

Egypt secures $1.2bn IMF disbursement amid reforms
Updated 12 March 2025
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Egypt secures $1.2bn IMF disbursement amid reforms

Egypt secures $1.2bn IMF disbursement amid reforms
  • Cairo tackles fiscal hurdles with strategic reforms, international support

RIYADH: Egypt has secured a $1.2 billion disbursement from the International Monetary Fund following the completion of the fourth review of its economic reform program.

This disbursement, approved by the IMF’s Executive Board under the Extended Fund Facility, brings Egypt’s total funding under the program to approximately $3.2 billion.

In addition, the IMF has approved a $1.3 billion arrangement under the Resilience and Sustainability Facility to support Egypt’s climate-related reforms.

The 46-month EFF arrangement, which was initially approved in December 2022, is designed to promote macroeconomic stability and drive structural reforms to support sustainable growth. The IMF has acknowledged Egypt’s progress in stabilizing its economy, despite external challenges such as regional conflicts and trade disruptions.

“Since March 2024, the authorities have made considerable progress in stabilizing the economy and rebuilding market confidence despite a challenging external environment,” said Nigel Clarke, deputy managing director and chair of the IMF executive board.  

Macroeconomic indicators show a mixed recovery for Egypt. Gross domestic product growth, which slowed to 2.4 percent in the fiscal year 2023-24 from 3.8 percent the previous year, rebounded to 3.5 percent in the first quarter of the fiscal year 2024-25.

Inflation, which had surged in recent years, has been gradually moderating since September 2023, alleviating some pressure on household incomes.

Meanwhile, the government achieved a primary fiscal surplus of 2.5 percent of GDP in 2023-24, marking a one-percentage-point improvement from the previous year. This was primarily driven by expenditure controls, which helped offset weaker domestic revenue performance.

Despite several improvements, Egypt continues to face significant fiscal challenges, including high debt levels and substantial financing needs. The country’s current account deficit widened to 5.4 percent of GDP in 2023-24, largely due to a $6 billion drop in Suez Canal receipts in 2024, caused by trade disruptions in the Red Sea.

However, remittances from Egyptian workers abroad and strong tourism revenues have provided crucial foreign exchange inflows.

To ensure fiscal sustainability, the IMF has recommended that Egypt expand its tax base, streamline tax incentives, and improve compliance. As IMF spokesperson Clarke noted, “Broadening the tax base, streamlining tax incentives, and enhancing compliance are essential to creating fiscal space for priority development and social needs.”

Additionally, the IMF stressed the importance of a comprehensive debt management strategy, which includes deepening the domestic debt market and enhancing fiscal transparency, particularly concerning off-budget entities.

In response to external challenges, the Egyptian government has adjusted its medium-term fiscal targets.


OPEC upholds global demand projections, reports output boost

OPEC upholds global demand projections, reports output boost
Updated 12 March 2025
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OPEC upholds global demand projections, reports output boost

OPEC upholds global demand projections, reports output boost

RIYADH: The Organization of the Petroleum Exporting Countries reiterated its forecast for robust global oil demand growth in 2025, citing strong support from air and road travel.

In its monthly report released on Wednesday, OPEC projected that global oil demand will rise by 1.45 million barrels per day in 2025 and by 1.43 million bpd in 2026, with both forecasts remaining unchanged from the previous month.

OPEC noted that while trade concerns are expected to introduce volatility as new trade policies are rolled out, the global economy is expected to adapt.

In the same report, OPEC revealed that the broader OPEC+ group increased production by 363,000 bpd in February, with a significant boost coming from Kazakhstan, which has struggled to meet its OPEC+ output targets.

According to OPEC’s data, Kazakhstan’s production increased to 1.767 million bpd in February, up from 1.570 million bpd in January.

Although Kazakhstan has pledged to cut its output and compensate for overproduction, it has ramped up production at the Chevron-operated Tengiz oilfield, the country’s largest.

Meanwhile, Russia’s crude oil output slightly decreased by 0.04 percent to 8.973 million bpd in February, from 8.977 million bpd in January.

This was marginally below Russia's production target of 8.98 million bpd under the OPEC+ agreement. Russia’s quota is expected to rise to 9.004 million bpd starting in April as part of OPEC+'s planned gradual output increase.

Deputy Prime Minister Alexander Novak announced last week that OPEC+ had agreed to begin raising oil production in April, though this decision could be reversed if market imbalances arise.


Closing Bell: Saudi main index continues to decline on third consecutive day

Closing Bell: Saudi main index continues to decline on third consecutive day
Updated 12 March 2025
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Closing Bell: Saudi main index continues to decline on third consecutive day

Closing Bell: Saudi main index continues to decline on third consecutive day

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the third consecutive day on Wednesday as it shed 13.03 points or 0.11 percent to close at 11,704.93. 

The total trading turnover of the benchmark index was SR5.42 billion ($1.44 billion), with 155 stocks advancing and 83 declining. 

The MSCI Tadawul index also declined by 0.43 percent to 1,476.91.

However, Saudi Arabia’s parallel market Nomu increased 410.19 points to close at 31,173.41. 

 The best-performing stock on the main market was Al-Baha Investment and Development Co. The company’s share price increased by 8.33 percent to SR0.39. 

The share price of Al-Babtain Power and Telecommunication Co. also rose by 7.08 percent to SR41.60.

ARTEX Industrial Investment Co. also saw its stock price rising by 6.54 percent to SR14. 

Conversely, the share price of Saudi Industrial Investment Group declined by 3.96 percent to SR15.02. 

On the announcements front, Arabian Drilling Co. said that its net profit for 2024 reached SR321.3 million, representing a decline of 46.85 percent compared to 2023. 

In a Tadawul statement, the company said that the decrease in net profit was mainly due to start up cost of the new unconventional rigs, as well as higher net finance expenses and depreciation costs, partially offset by higher revenue.

The share price of the company edged down by 0.54 percent to SR91.40.

Savola Group said that its net profit witnessed a surge of 1009.2 percent year on year to reach SR9.97 billion. 

This was primarily driven by the distribution of its 34.52 percent stake in Almarai to shareholders, resulting in a net gain of SR11.3 billion.

The retail segment also contributed to the profit surge, with net earnings climbing from SR47 million in 2023 to SR154 million in 2024. This growth was fueled by the positive impact of the CXR program and an expanded store network.

The share price of the company closed on SR32.70, decreasing 3.54 percent, as it was the second worst performer of the day.

Theeb Rent a Car Co. said that the firm’s net profit for 2024 stood at SR182.7 million, representing an increase of 28.6 percent compared to 2023. 

In a Tadawul statement, the company revealed that its net profit increased due to the improved utilization rate of short and long-term rental segments.

This is in addition to the reduction of certain operational costs items, alongside with the increase in total revenues by 14.73 percent reached SR2.34 billion in 2024, marking a year on year rise of 4.01 percent. 

Theeb Rent a Car Co.’s share price increased by 4 percent to SR73.

AlSaif Stores for Development and Investment Co. also revealed its net profit decrease by 61.7 percent, reaching SR37.53 million.

The decrease was due to an increase in the cost of goods sold, the impact of exceptional offers and an increase in financing interest expenses.

Its share price edged up by 1.05 percent to SR7.60.


Giga-projects spark $1.22bn boom in Saudi real estate market

Giga-projects spark $1.22bn boom in Saudi real estate market
Updated 12 March 2025
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Giga-projects spark $1.22bn boom in Saudi real estate market

Giga-projects spark $1.22bn boom in Saudi real estate market

RIYADH: Saudi Arabia’s residential real estate market is set for a significant surge, with private buyers expected to invest SR4.58 billion ($1.22 billion) this year, according to an analysis.

The Saudi Report 2025 by global property consultancy firm Knight Frank, conducted in collaboration with YouGov, highlights that investors are willing to pay substantial premiums for homes within the Kingdom’s mega-development projects.

The study, which surveyed 1,037 households, including 100 expatriates based in Saudi Arabia, found that SR2.75 billion of potential private capital, including SR2.62 billion from Saudi nationals and SR133.7 million from expatriates, is ready to be deployed into the Kingdom’s giga-projects.

NEOM has emerged as the most sought-after destination, with 41 percent of respondents earning over SR80,000 per month expressing an intent to spend more than SR20 million on homes in such large-scale developments.

The findings underscore the growing demand for premium residential offerings in these transformative projects, which align with the Kingdom’s Vision 2030 economic diversification agenda.

“While NEOM continues to take pole position in the hearts and minds of Saudi nationals as a location they would like to live in, its popularity has decreased from 84 percent in 2023 to 17 percent this year,” Faisal Durrani, partner and head of research for MENA at Knight Frank, said.

He continued: “There are likely to be a range of reasons for this, including the emergence of other giga-projects over the last two years, perceptions around households’ ability to afford to own a home in any of NEOM’s subprojects, a lack of ready-to-move-into homes, a lack of homes actually on the market to purchase, or a combination of the above. These factors present a clear blueprint for how NEOM’s developers can boost absorption rates once homes are made available to purchase.”

According to Knight Frank, NEOM was found to be the most desirable giga-project among Saudi nationals, although those on monthly incomes of SR10,000 to SR50,000 showed a higher level of interest in living in the Belgium-sized super-city than those with incomes in excess of SR50,000.

For the latter group, Jeddah Central had greater appeal, representing 14 percent, with NEOM following in second place.

While expats with a monthly income of over SR30,000 also favor NEOM as their most preferred location to own a home, it is notable that 20 percent of all the expats surveyed have no desire to purchase residential real estate in any of the giga-projects.

“The relatively low appetite among expats to purchase a home in any of the giga-projects likely stems from a lack of understanding of what will eventually be available, a lack of proof of concept, difficulty in navigating expat ownership rules, financing challenges, or indeed a combination of the above,” Susan Amawi, general manager at Knight Frank  Saudi Arabia said.

She added: “We expect this to change over time, especially once details of the much-anticipated change to foreign ownership laws are unveiled.”

NEOM has awarded construction contracts worth $28.7 billion as of early 2025, with $100 million allocated to Magna and an additional $10.5 billion for The Line, according to an analysis by Knight Frank.

Saudi nationals and expatriates earning SR10,000 to SR20,000 per month showed the highest level of interest, followed by those with incomes between SR20,000 and SR30,000.

Meanwhile, 29 percent of respondents earning SR40,000 to SR50,000 also expressed a desire to buy a home in The Line.

However, Durrani noted a shift in preferences among higher-income groups.

“The apparent tapering in the desirability of The Line as a place to live and own a home as incomes grow could be a reflection of the perception of The Line as a ‘mass-market project,’ with those on higher incomes perhaps in favour of somewhere more exclusive,” he explained.

Durrani added: “Indeed, our results have shown that the largest proportion of those on monthly incomes of between SR70,000 and 80,000 would prefer to own a home at the Red Sea Project and King Salman Park. For this group, NEOM overall trails at just 5 percent.”

Saudi Arabia’s leading residential developer, ROSHN, has also emerged as a key player in the Kingdom’s giga-projects.

According to Knight Frank, ROSHN’s SEDRA development in Riyadh is the most sought-after project, with 39 percent of respondents selecting it as their top choice.

ROSHN’s focus on affordable homes in integrated community settings has played a pivotal role in its widespread appeal.

Other highly sought-after ROSHN developments include Warefa in Riyadh and Marafy in Jeddah.

Tariq de Jong, regional head of residential research at Knight Frank, emphasized ROSHN’s rising prominence among Saudi homebuyers.

“Away from NEOM, Saudi nationals and Saudi-based expats are actively targeting projects by ROSHN, which ranks alongside Jeddah Central as the second most popular giga project home purchase location,” Harmen de Jong, partner and regional head of Strategy & Consulting for Saudi Arabia at Knight Frank, said.

He concluded: “ROSHN has positioned itself as the Kingdom’s leading residential community developer and is working toward setting new benchmarks in creating integrated neighborhoods that blend modern living with traditional Saudi heritage, all crucially anchored by community facilities and amenities which are in high demand and in short supply.”