Saudi Arabia bets on flying taxis and autonomous vehicles to transform mobility  

Saudi Arabia bets on flying taxis and autonomous vehicles to transform mobility  
FlyNow, a developer of electric aviation solutions, is preparing to roll out a modular system of electric helicopters to transport goods and passengers, according to co-founder and chief operating officer Yvonne Winter. Supplied
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Updated 10 February 2025
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Saudi Arabia bets on flying taxis and autonomous vehicles to transform mobility  

Saudi Arabia bets on flying taxis and autonomous vehicles to transform mobility  
  • Regulatory sandbox has been developed to validate different vehicles, air traffic management systems, and operational reports
  • FlyNow plans to expand testing to urban settings and passenger transport

RIYADH: Saudi Arabia is positioning itself at the forefront of mobility innovation, with industry leaders highlighting the potential of flying taxis and autonomous vehicles at the LEAP conference in Riyadh. 

FlyNow, a developer of electric aviation solutions, is preparing to roll out a modular system of helicopters to transport goods and passengers, according to co-founder and chief operating officer Yvonne Winter. 

“Economic growth is tightly linked to mobility,” Winter said during a panel discussion, adding: “And to solve traffic issues related to congestion, air quality pollution, and noise pollution, air transportation is the way to go.” 

She described this new industry as “the low-altitude economy,” and insisted that “together we have to find a way to unlock it.” 




FlyNow COO and co-founder Yvonne Winter. AN Photo

Winter noted that one of the biggest challenges for international governments and regulatory bodies is the absence of a feasible blueprint for implementation — an issue FlyNow has tackled with a step-by-step approach that “is considered to be very safe.” 

As part of this approach, a regulatory sandbox has been developed to validate different vehicles, air traffic management systems, and operational reports before progressing to cargo applications. 

Following extensive cargo trials over low-population areas, FlyNow plans to expand testing to urban settings and passenger transport. 

Winter said e-helicopters will reduce waiting times and be both affordable and accessible to the public. 

Mobility push  

Ayman Mesfer, general manager of the Intelligence and Future Sector at the Ministry of Transport and Logistics Services, said Saudi Arabia is embracing new technologies across all transportation modes: land, air, and sea. 

The ministry plans to launch an incubator to provide financial and advisory support for small and medium-sized enterprises working on mobility solutions. 




Ayman Mesfer, general manager of the Intelligence and Future Sector at the Ministry of Transport and Logistics Services. AN Photo

“The ministry will take a look at deployment of new and major technologies from all aspects, from AI applications, data utilizations, as well as the talents as the enablers, and the infrastructure,” Mesfer said. 

Omaima Bamasag, deputy of transport enablement at the Transport General Authority, highlighted the agency’s new Future Mobility Program. The initiative comprises 12 stakeholders from both the public and private sectors, working to identify gaps in Saudi Arabia’s mobility systems and propose new plans. 




Omaima Bamasag, deputy of transport enablement at the Transport General Authority. AN Photo

Approved by the Higher Committee for Transportation, led by Crown Prince Mohammed bin Salman, the committee has already introduced 216 projects and identified 16 gaps, with alternative projects designed to bridge them. 

Key successes include the development of a framework for autonomous vehicle policies, pilot requirements for AVs, the deployment of scooters during the past two Hajj seasons, a student shuttle at King Saud University, and Jahez food delivery services during Hajj. 

“This is all piling up toward realizing AV ambitions and validating the AV policy and regulation that has been put forward. And keep an eye out for a pilot AV taxi that you will be seeing soon here in Riyadh,” Bamasag said. 

Infrastructure and partnerships 

According to Mesfer, the Ministry of Transport and Logistics Services has partnered with multiple entities to develop the regulatory framework and infrastructure for these technologies. 

Alongside the General Authority for Civil Aviation, the ministry has developed an advanced air mobility roadmap tracking aviation and drone deployment. 

It has also partnered with King Abdullah University of Science and Technology to construct a new testing ground, described as a “living lab” to assess technologies across land, maritime, railway, and aviation sectors. Additional collaborating entities include TGA and the Roads General Authority. 

The country has already piloted an air taxi in NEOM, signaling its commitment to integrating futuristic transportation solutions. 

In November 2023, TGA established a regulatory sandbox to facilitate the testing of unregulated mobility technologies. Since then, five business models have emerged: micromobility, e-scooters, e-car rentals, ride-sharing, and drop-off and pick-up boxes. 

“Gathering all these challenges, trying to resolve them, and paving the way for these technologies to be regulated and then licensed. 

Once these technologies or companies are licensed, they will have a tremendous impact on GDP and job creation,” he said. 

On innovative mobility solutions, Antonio Jara, chief security officer of Libelium, spoke about the company’s work in Saudi Arabia and Europe to create digital twins for low-emission zones. These models integrate data from IoT sensors, noise, and air quality metrics. 




Antonio Jara, chief security officer of Libelium. AN Photo

Jara emphasized the importance of data spaces for normalization, smart modeling, classification, and quality assessment, creating a secure data exchange platform between stakeholders. 

That data is then incorporated into AI models, such as zonification for clustering, pollution simulation and forecasting or digital twins, CO2 equivalent modeling, and low-emission zone analysis. 

These models help track pollution sources, provide sustainability impact assessments, and monitor crowd movement. 

Libelium’s AI capabilities include data standardization, already implemented in major cities such as Amsterdam, Helsinki, and Paris. Other models focus on traffic prediction, meteorological data, clustering, and an LEZ service model for impact assessment.  

Speaking to Arab News about Saudi applications, Jara said: “Aramco, Johns Hopkins — they are optimizing parking with these AI models. NEOM is another real example; they are monitoring all the pollution propagation from the tunnels, The Line.” 

Pollution tracking involves both real-time data and predictive analysis. 

“We are also doing a proof of concept in Riyadh municipality because they want to understand the real benefit of the metro in reducing traffic-related pollution,” Jara added.


Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%
Updated 16 March 2025
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Closing Bell: Saudi stock markets rise; TASI climbs over 1%

Closing Bell: Saudi stock markets rise; TASI climbs over 1%

RIYADH: Saudi Arabia’s Tadawul All Share Index saw a positive close on Sunday, gaining 127.90 points, or 1.09 percent, to settle at 11,853.78.

The benchmark index recorded a trading turnover of SR4.67 billion ($1.24 billion), with 207 stocks advancing and 35 declining.

Similarly, the Kingdom’s parallel market, Nomu, also posted gains, rising by 139.42 points, or 0.45 percent, to close at 31,275.27. In this market, 50 stocks rose while 30 saw declines. The MSCI Tadawul Index followed suit, gaining 15.52 points, or 1.05 percent, to close at 1,494.79.

Arriyadh Development Co. was the top performer of the day, with its share price soaring by 9.91 percent to SR36.05.

Other notable gainers included Saudi Research and Media Group, whose shares climbed 7.97 percent to SR189.60, and Banan Real Estate Co., which saw a 6.27 percent rise, closing at SR6.95.

On the downside, Saudi Paper Manufacturing Co. experienced the largest drop, falling 3.62 percent to SR58.50. Al-Baha Investment and Development Co. also saw a decline of 2.56 percent, with its shares ending at SR0.38.

Meanwhile, Tihama Advertising and Public Relations Co. saw a 1.84 percent decrease, closing at SR16.

Saudi Reinsurance Co. announced its annual financial results for the year ending Dec. 31.

The company reported a net profit of SR440 million for 2024, a remarkable 628 percent increase compared to 2023. This surge was primarily driven by capital gains from the sale of its stake in Probitas Holding, which amounted to SR365.9 million.

Additionally, the company’s board of directors recommended a 46.6 percent increase in capital by distributing 51.48 million bonus shares to shareholders, translating to four shares for every nine held.

The increase also includes 2.5 million shares allocated for a long-term incentive plan for employees, boosting the company’s capital by an additional 2.16 percent. Despite these strong results, Saudi Reinsurance Co. saw its share price dip by 0.53 percent, closing at SR48.10.

Najran Cement Co. also released its annual financial results for the year ending Dec. 31. The company reported a net profit of SR68.4 million for 2024, reflecting a 24.05 percent increase from 2023. This growth was driven by higher sales and improved gross margins, despite rising general and administrative expenses and finance costs. Najran Cement Co.’s stock rose by 3.34 percent, closing at SR8.75.


Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects
Updated 16 March 2025
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Saudi Arabia launches $266m program to promote eco-friendly projects

Saudi Arabia launches $266m program to promote eco-friendly projects

RIYADH: Saudi Arabia has unveiled a new environmental financing initiative worth SR1 billion ($266.6 million), supported by Riyad Bank, to encourage private sector participation in sustainable and eco-friendly projects.

Abdulrahman Al-Fadhli, Saudi Arabia’s minister of environment, water, and agriculture and chairman of the Environmental Fund’s board of directors, officially introduced the program on Sunday.

The launch coincided with the unveiling of a new digital platform for the Incentives and Grants Program, designed to foster innovation and boost environmental investments.

This initiative aligns with Saudi Arabia’s Vision 2030 objectives, which focus on promoting environmental sustainability and enhancing the quality of life.

Munir bin Fahd Al-Sahli, CEO of the Environmental Fund, emphasized that the financing program is aimed at attracting private sector investments to strengthen environmental infrastructure and meteorological services. He also noted that the program will encourage businesses across various sectors to adopt sustainable practices through innovative financial solutions.

Al-Sahli described this partnership as a major step forward in funding environmental projects, highlighting that the new platform would offer incentives and support for outstanding environmental initiatives. These efforts are part of a broader national strategy to protect the environment and foster sustainable development.

The financing program represents a significant milestone in enhancing environmental investments in the Kingdom. It provides businesses and entrepreneurs with resources and incentives to develop projects that not only improve quality of life but also contribute to sustainable environmental growth.

The new electronic platform for the Incentives and Grants Program, which was launched alongside the financing initiative, is designed to streamline the process for beneficiaries and ensure efficient execution of environmental projects. The platform aims to promote eco-friendly practices, foster innovation, and encourage investment in the environmental sector, while also ensuring regulatory compliance across various industries.

Al-Sahli reiterated the fund’s commitment to offering both financial and technical support to ensure lasting positive impacts on the environment. He urged stakeholders in the environmental sector to explore the various opportunities available through the platform.

The Incentives and Grants Program is expected to drive investment in environmental projects and improve compliance levels among institutions. It will provide grants and incentives to a broad range of entities, including small and medium-sized enterprises, corporations, research centers, universities, and nonprofit organizations.

The Environmental Fund continues to develop and implement programs focused on protecting natural resources, reducing pollution, and raising environmental awareness. Through collaborations with government and private entities, it strives to balance economic growth with environmental conservation.


Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 
Updated 16 March 2025
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Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

Saudi Arabia’s inflation holds steady at 2% in February: GASTAT 

RIYADH: Saudi Arabia’s inflation held firm at 2 percent year on year in February, driven largely by rising housing costs, official data showed.  

According to the General Authority for Statistics, the increase was fueled by an 8.5 percent surge in housing rents, contributing to a 7.1 percent overall rise in the housing, water, electricity, gas, and fuels category. 

The inflation rate remains consistent with Saudi Arabia’s efforts to balance economic growth with price stability as the Kingdom advances its Vision 2030 strategy, which aims to diversify the economy beyond oil.   

The government’s November 2024 budget forecast anticipated inflation to hold steady at 1.9 percent in 2025, up slightly from 1.7 percent in 2024. Meanwhile, the World Bank projected a stable 2.3 percent rate this year, below the Gulf Cooperation Council average. 

“On a monthly basis, the consumer price index in February 2025 recorded relative stability compared to January 2025, rising by 0.2 percent due to the increase of housing, water, electricity, gas, and other fuels section by 0.4 percent, driven by a 0.4 percent increase in actual housing rent prices,” said GASTAT.  

Sector breakdown 

Food and beverage prices saw a modest rise of 1 percent, largely influenced by a 3.7 percent increase in meat and poultry costs. Personal goods and services climbed 3.9 percent, bolstered by a 26.7 percent jump in jewelry prices. 

Restaurant and hotel costs edged up 0.8 percent year on year, while furniture and home equipment prices dropped 2.5 percent. Clothing and footwear prices declined 1 percent, led by a 2.4 percent drop in ready-made clothing. 

Transportation costs also dipped 1.5 percent compared to February 2024. 

On a monthly basis, consumer prices remained stable overall, with food and beverages slipping 0.2 percent. Personal goods and services rose 0.7 percent, while health and tobacco prices held steady. 

Wholesale Price Index  

In a separate report, GASTAT noted that Saudi Arabia’s Wholesale Price Index increased 1.5 percent year on year in February, driven by a 3.4 percent rise in other transportable goods prices and a 3.9 percent increase in agriculture and fishery products. 

Food products, beverages, tobacco, and textiles fell by 0.1 percent year on year, while metal products, machinery, and equipment prices dipped 0.5 percent. Ores and minerals costs dropped 1.9 percent. 

Compared to January, the WPI declined 0.5 percent, led by a 1.4 percent fall in other transportable goods prices, excluding metal products, machinery, and equipment. Food products, beverages, tobacco, and textiles also saw a marginal 0.1 percent drop, while agriculture and fishery product costs rose 1.6 percent. 


Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges
Updated 16 March 2025
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Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

Arab region’s GDP climbs 1.8% to $3.6tn in 2024 despite challenges

RIYADH: The Arab region’s gross domestic product increased by 1.8 percent, reaching $3.6 trillion in 2024, despite facing regional challenges, according to new data.

The report, released by the Arab Investment and Export Credit Guarantee Corporation or Dhaman, showed that growth was primarily concentrated in Saudi Arabia, the UAE, Egypt, Iraq, and Algeria, which together accounted for over 72 percent of the region’s total GDP, as reported by the Kuwait News Agency.

This aligns with Moody’s January forecast that oil production and major investment projects will drive a 0.8 percentage point increase in annual economic growth across the Middle East and North Africa in 2025.

It also corresponds with Moody’s projection of 2.9 percent growth for the region in 2025, up from 2.1 percent in 2024, while maintaining a stable outlook on the region’s sovereign credit fundamentals for the next 12 months.

The data also indicated positive outlooks for the Arab economy’s performance in 2025, with an expected growth rate of 1.4 percent.

This growth is likely to be driven by expansion in 14 Arab countries, including nine oil-producing economies that together contribute more than 78 percent of Arab GDP.

There is cautious optimism surrounding the potential reduction in regional unrest and conflicts, along with an expected improvement in revenues from oil, gas, and exports of goods and services produced by the region.

In January, Moody’s emphasized that the impact of large investments in 2025 will be most evident in Saudi Arabia, driven by significant government and sovereign wealth fund spending related to the Vision 2030 diversification program.

Moody’s also noted that the pick-up in the MENA economy will be primarily fueled by stronger growth among hydrocarbon exporters, as a result of the partial unwinding of strategic oil production cuts under the OPEC+ agreement.

According to Moody’s, real GDP growth for hydrocarbon-exporting nations is expected to rise to 3.5 percent in 2025, up from 1.9 percent in 2024. This boost will be driven by countries like Saudi Arabia, the UAE, Iraq, Kuwait, and Oman easing the oil production cuts implemented in 2023.


Oil exports propel Oman’s trade surplus to $19.4bn

Oil exports propel Oman’s trade surplus to $19.4bn
Updated 16 March 2025
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Oil exports propel Oman’s trade surplus to $19.4bn

Oil exports propel Oman’s trade surplus to $19.4bn
  • Saudi Arabia ranked second for Omani non-oil exports at 849 million rials

RIYADH: Oman’s trade surplus reached 7.5 billion Omani rials ($19.4 billion) in December, up from 7.14 billion rials in November, largely driven by the oil and gas sector, according to a new report.

Preliminary data from the National Centre for Statistics and Information indicated that the increase was primarily due to higher export revenues, especially from oil and gas, despite a rise in imports.

The total value of merchandise exports in December amounted to 24.23 billion rials, reflecting a 6.8 percent increase compared to the same period in 2023, when exports were valued at 22.69 billion rials.

The growth was predominantly attributed to a rise in oil and gas exports, which reached 16.29 billion rials, an 18.4 percent increase from 13.76 billion rials in December 2023.

Meanwhile, Oman’s merchandise imports increased by 12.1 percent year on year, reaching 16.71 billion rials in December, up from 14.91 billion rials the previous year.

Despite the increase in imports, the trade balance remained positive, supported by the robust performance of the country’s energy exports.

Within Oman’s oil and gas exports, crude oil exports totaled 9.91 billion Omani rials by the end of December, marking a 0.8 percent increase from the same period in 2023.

Refined oil exports saw a significant surge of 185.5 percent, reaching 3.85 billion rials. However, liquefied natural gas exports declined by 1.9 percent to 2.53 billion rials.

Meanwhile, non-oil merchandise exports fell by 16.3 percent to 6.23 billion rials in December, down from 7.44 billion rials the previous year.

Among these, mineral products accounted for the highest value at 1.78 billion rials, but this figure represented a 36.8 percent year-on-year drop.

Exports of base metals and their products remained stable at 1.32 billion rials, increasing slightly by 0.1 percent, while plastic and rubber product exports grew by 13.3 percent to 996 million rials.

Chemical industry exports declined by 19.6 percent to 804 million rials, and exports of live animals and animal products fell 11 percent to 350 million rials. Other exports totaled 981 million rials, a decrease of 5 percent.

Re-exports from Oman increased by 14.9 percent to 1.71 billion rials by the end of December. Within this category, re-exports of food and beverage products saw a notable 30.6 percent rise to 184 million rials, while re-exports of mineral products climbed 21.3 percent to 120 million rials.

However, re-exports of transport equipment fell by 0.6 percent to 401 million rials, and electrical machinery and equipment declined by 5.4 percent to 376 million rials. Re-exports of live animals and related products also dropped by 10.1 percent to 97 million rials.

On the import side, mineral products accounted for the largest share, totaling 4.67 billion rials, an 11.3 percent increase from December 2023.

Imports of electrical machinery and equipment surged 28.9 percent to 2.93 billion rials, while base metals and their products rose 1 percent to 1.61 billion rials.

Imports of chemical products rose 3.1 percent to 1.52 billion rials, and transport equipment imports increased by 13.5 percent to 1.52 billion rials. Other imports totaled 4.47 billion rials.

The UAE remained Oman’s top trading partner for non-oil exports, with trade value rising 11 percent year-on-year to 1.05 billion rials.

The UAE also led in re-exports from Oman, which amounted to 569 million rials, and was the top source of imports into the country, totaling 3.94 billion rials.

Saudi Arabia ranked second for Omani non-oil exports at 849 million rials, followed by India at 659 million rials.

Iran was the second-largest destination for Omani re-exports at 359 million rials, with Kuwait in third at 117 million rials.

China was the second-largest exporter to Oman, with trade valued at 1.83 billion rials, followed by Kuwait at 1.69 billion rials.

In the oil sector, total crude oil exports until the end of January stood at approximately 25.82 million barrels, with an average price of $72.5 per barrel.

Oil exports accounted for 84.3 percent of total oil production, which reached 30.61 million barrels during the same period. However, crude oil exports declined by 1.5 percent compared to January 2024, when they totaled 26.2 million barrels.

Oil production also saw a 2 percent year-on-year drop, standing at 31.24 million barrels in January.

The country’s total crude oil production fell by 2.2 percent in January to 23.39 million barrels, while condensate production reached 7.22 million barrels. The daily average oil output for January stood at 987,500 barrels.

In the banking sector, total credit provided by conventional commercial banks in Oman grew by 4.8 percent by the end of December. Private sector credit rose by 3.6 percent, reaching 20.7 billion rials.

Investment by conventional banks in securities also saw a notable increase, rising 20.5 percent to approximately 6 billion rials.

This included a 7.3 percent rise in investments in government development bonds to 2 billion rials and a 30.3 percent surge in foreign securities investments to 2.3 billion rials.

On the liabilities side, total deposits at conventional commercial banks increased by 6.2 percent to 25.1 billion rials by the end of December.

Government deposits rose by 5.3 percent to 5.3 billion rials, while public sector institution deposits grew by 11 percent to 2.5 billion rials. Private sector deposits, which made up 65.3 percent of total deposits, climbed 4.9 percent to 16.4 billion rials.