INTERVIEW: KAUST’s plan to recreate classical Islam’s ‘House of Wisdom’

Illustration by Luis Grañena
Updated 28 October 2019
Follow

INTERVIEW: KAUST’s plan to recreate classical Islam’s ‘House of Wisdom’

  • Tony Chan, president of the King Abdullah University of Science and Technology, explains its role in advancing human knowledge — and in supporting the Vision 2030 transformation

DUBAI: The King Abdullah University of Science and Technology (KAUST) throws up some big surprises on a visit to the campus, an hour’s drive north of Jeddah.

Expecting a white-hot furnace of high technology — what staff call the “deep tech heart of the Saudi Arabian economy” — you find yourself marveling at replicas of 1,000 year old inventions — navigational instruments, hydraulic systems and sophisticated chronometers — from the golden age of Islamic learning, in the campus museum.

That juxtaposition is entirely deliberate and appropriate, as Tony Chan, president of KAUST for the past year, explained. “The idea was to recreate the Bayt Al-Hikmah — the House of Wisdom — of classical Islam’s golden age, and to contribute to human civilization,” he said.

Chan, of Hong Kong origin and with a prodigious career mainly spent at US institutions, has been involved with KAUST since before it was formally inaugurated just over 10 years ago, and is in a unique position to describe its long heritage, as well as its modern role as an intellectual power-house for the big changes across the Kingdom’s economy, society and culture as the Vision 2030 strategy progresses.

In some ways, KAUST’s establishment was a herald of the current transformation. It was the first coeducational institutional facility in Saudi Arabia, where women did not have to wear traditional clothing on campus, could drive and watch movies at a cinema alongside men, years before those advances came to the Kingdom.

“We are like a beacon to the world,” said Chan, in reference to the symbolic lighthouse structure that overlooks the KAUST marina on the Red Sea.

With these modern facilities, its cosmopolitan population and its emphasis on technology, the site is reminiscent of the Saudi Aramco “camp” in Dhahran — the American-built town that housed the first foreign oil workers in the 1950s.

Originally funded by a $20 billion government endowment, the project was handed over to Ali Al-Naimi, the former Aramco chief executive and Saudi energy minister, to oversee. Chan says that Aramco built the main part of the campus in 1,000 days, in time for the 2009 opening.

“KAUST has Aramco in its DNA in terms of organizational structure and culture, adapted to an academic environment,” he said.

Aramco is one of the corporates — along with the likes of SABIC, the US chemical company Dow and the aerospace group Boeing — with a presence on the campus. KAUST is as much an environment intended to cultivate entrepreneurial innovation as an institute of learning.

“There is a strong business emphasis here, in terms of encouraging startups and entrepreneurial talent. There is a two-way emphasis — to advance research and education, and to facilitate economic development and human capital, in line with Vision 2030,” Chan said.

Some 2,000 would-be Saudi entrepreneurs pass through the university each year, emerging equipped to play a role in the Kingdom’s fast-changing economy. Research has shown that as many as 30 percent of young citizens want to start their own businesses, rather than go for the traditional jobs in the public sector. KAUST plays a vital tole in encouraging and nurturing this young talent.

It is not a university in the traditional sense, with an annual influx of fresher undergraduates. All of the 1,100 students on campus are postgraduates, as well as 337 research scientists, under the supervision of 159 faculty members on the site at Thuwal.

That environment is designed to encourage intellectual innovation, and to back up the megaprojects under way in Saudi Arabia under Vision 2030.

Because of its location, KAUST is particularly involved in the two big projects in the area — the Red Sea development and NEOM.

The former — underway a couple of hundred kilometers north on the coast — is one of the most ambitious ventures ever taken in leisure and high-end tourism. It will be a self-sustaining resort the size of Belgium, designed to give global and regional visitors a taste of the Kingdom’s seldom-seen ecological and cultural heritage.

“We are working on four areas with them — energy, environment, food and water. And we are involved in their digital aspects too. These are global issues of course, but they are all of especial interest to the Kingdom,” Chan said.

Some of the work with the Red Sea Project is truly groundbreaking, with applications all over the world, he explained. “Sea plants — kelp, seaweed and the rest — are better at absorbing carbon than land plants, so that could provide a solution to global environmental challenges.

One focus of KAUST’s work in the Red Sea involves the project to reduce salinity in the area, a big issue for the Kingdom because of the high levels of salt produced in the water desalination industry. The “brains for brine” initiative could have truly global impact. 

KAUST’s work also has big significance in energy issues. “We’re looking at ways to analyze the wind patterns across the Red Sea, because if you are going to use wind power as a significant part of your renewable commitment, you need to know how the wind works in that particular region,” he said.

“We have a big focus on energy — not just petroleum, but solar and other renewables. Oil is not going away any time soon, but we have to be conscious of the effects of climate change, which affects the Kingdom more than most others,” Chan said.

“Clean combustion is the big thing. We have a research partnership with McLaren, working on fuel mix and aerodynamics to make engines more efficient, and with Volvo and others in our ‘clean combustion’ center,” he added.

A former president of the university — Chan’s predecessor Nadhmi Al-Nasr — is chief executive of NEOM, and the links with KAUST run deep. “NEOM is different from the Red Sea. It’s not a leisure resort so there are far more artificial intelligence, digital and educational angles to it. There is a NEOM centre at KAUST, and I sit on NEOM’s high commission. We have contributed lots of people and talent to NEOM and several run the different sectors involved in the project,” Chan said.

Another major activity at KAUST involves the preparations for the G20 Summit next year, which the Kingdom is staging, the first time the gathering or world leaders will be held in the Middle East. Chan is involved in the scientific sub-grouping of the G20, the so-called S20, and he sees the event, which will take place next November, as a pivotal moment in its history.

“We have become a think tank within the G20 preparations, in the S20 group, working mainly on energy and climate matters. We have the expertise. The Kingdom, and the world, need the expertise. The whole of the Saudi government is involved in the G20 preparations — it will be like a coming out party for the Kingdom,” he said.

Chan’s background encompassed some of the biggest academic institutions in Asia and the US, and he is especially keen to attract global talent to be part of the KAUST community, which has 100 nationalities in the 7,300-strong campus site.

“It has not been hard to attract talent. Usually, the most difficult part is to get prospective talent to make the first visit. I have seen no reaction to the death of Jamal Khashoggi. We are still recruiting from the US and the rest of the world, and there has been no adverse affect from that tragic event,” Chan said.

Attracting that talent will help achieve Chan’s goal — to make KAUST a center of academic excellence along the lines of the biggest and best-known institutions in the world. How will he know when he has achieved that?

“It is not just about ranking in the academic league tables, although that is part of it. We focus on talent development, and on knowledge —adding to the sum of human knowledge. But we do very well on the criteria of ‘citation by faculty,’” he said.

“The most important measure of our success is by the achievements of our alumni. Why are Oxford and Cambridge regarded as so successful? Because Oxford turns out more prime ministers than any other university, and Cambridge more Nobel Prize winners.

“We are still a very young organization. The oldest of our alumni is still under 40, so it will take a while to get the professional recognition. But I am confident it will come.”


UNCCD COP16: Saudi Arabia announces Green Zone to combat land degradation

Updated 18 November 2024
Follow

UNCCD COP16: Saudi Arabia announces Green Zone to combat land degradation

RIYADH: Saudi Arabia will host a special UN forum to combat desertification with the introduction of a dedicated Green Zone and thematic days for the first time in the event’s history. 

As part of its presidency of the UN Convention to Combat Desertification COP16, the Kingdom has announced a dedicated area focused on raising global awareness about land degradation, while enabling key decision-makers from scientific, non-governmental, political, business, and at-risk communities to find and fund lasting solutions. 

The Green Zone will host thematic days designed to rally action on critical issues, including agri-food systems and finance, during the conference set to take place from Dec. 2-13 at Boulevard Riyadh City. 

This initiative aligns with the Saudi Green Initiative target to turn 30 percent of the Kingdom’s land into nature reserves, plant 10 billion trees, and restore 40 million hectares of degraded land. 

“Land degradation, desertification and drought impact almost every corner of the planet, and every living being on it, from the species at risk of extinction to the lives and livelihoods impacted by severe drought,” said Osama Faqeeha, deputy minister for environment at the Ministry of Environment, Water and Agriculture, and adviser to the UNCCD COP16 Presidency. 

“Saudi Arabia will host the first-ever UNCCD COP16 Green Zone to mobilize the international community and maximize the opportunity during December’s conference of delivering lasting global change,” he added. 

There will also be a Blue Zone, which along with its green counterpart will feature seven thematic days designed to foster action and dialogue among key stakeholders. 

Land Day will focus on land restoration initiatives and nature-based solutions, while the Business for Land Forum will bring together international leaders to discuss the economic importance of sustainable land practices. 

Finance Day will address ways to close the financing gap in land degradation, along with a special ministerial dialogue and innovations in Sustainable Land Management financing. Governance Day will focus on improving women’s land rights and address policy issues surrounding land tenure and resource governance. 

Agri-Food Systems Day will spotlight food security, crop resilience, and sustainable farming. Resilience Day will explore water scarcity, drought resilience, and early warning systems for sand and dust storms. 

People’s Day will feature a youth caucus to engage young people, as 1 billion people under 25 in regions dependent on land and natural resources for jobs and livelihoods face significant challenges. 

 


Alfanar Projects, SEC sign $5.33bn deals to support Saudi energy modernization 

Updated 18 November 2024
Follow

Alfanar Projects, SEC sign $5.33bn deals to support Saudi energy modernization 

RIYADH: Energy deals worth SR20 billion ($5.33 billion) have been signed between Alfanar Projects and Saudi Electricity Co. to advance the Kingdom’s power modernization and sustainability efforts. 

The agreements, announced during the Energy Localization Forum hosted by the Ministry of Energy, include the construction of the Middle East’s largest High-Voltage Direct Current Converter Station, according to a press release.  

This facility, developed in partnership with China Electric Power Equipment and Technology Co., will deliver 7 gigawatts of power between the Central, Western, and Southern regions. 

The deals also include projects for battery storage systems, smart distribution centers, and renewable energy integration, aimed at improving grid reliability and supporting Saudi Arabia’s Vision 2030 goals of energy self-sufficiency and sustainability. 

Saudi Arabia aims to get 50 percent of its power from renewable energy by 2030, with a total capacity of 130 GW. This includes 58.7 GW from solar and 40 GW from wind, making it the most ambitious renewable energy target in the Gulf Cooperation Council. 

Amer Al-Ajmi, executive vice president of sales and marketing at Alfanar Projects, said: “The confidence placed in us by the Ministry of Energy, through its representative, Saudi Electricity Co., affirms our commitment to deliver and execute transformative projects of this scale.”  

He added: “At Alfanar Projects, we combine our robust resources, technical expertise, and a highly skilled national workforce to create a sustainable energy infrastructure that supports the Kingdom’s self-sufficiency goals and strengthens its role as a leader in renewable energy.” 

The signing ceremony was attended by Saudi Energy Minister Prince Abdulaziz bin Salman, Minister of State Hamad bin Mohammed Al-Sheikh, and Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef. 

Other key representatives included Khaled Al-Ghamdi, CEO of Saudi Electricity Co., and Sabah Al-Mutlaq, vice chairman of Alfanar Co. and managing director of Alfanar Projects, who represented both organizations. 

Alfanar Projects is a Saudi-based company developing sustainable energy projects that support economic growth and environmental goals in the Kingdom and beyond. 

Earlier this month, Saudi Electricity Co. reported a net profit of SR5.6 billion for the first nine months of 2024, up from SR 4.6 billion last year. The company’s power generation capacity grew by 1.4 percent, with its directly owned capacity rising to 56.9 GW. 


Closing Bell: Saudi benchmark index edges up to close at 11,830

Updated 18 November 2024
Follow

Closing Bell: Saudi benchmark index edges up to close at 11,830

RIYADH: Saudi Arabia’s Tadawul All Share Index rose by 0.16 percent or 18.40 points to reach 11,830.38 points on Monday.   

The total trading turnover of the benchmark index was SR5.4 billion ($1.46 billion), as 78 of the listed stocks advanced, while 151 retreated.   

The MSCI Tadawul Index increased by 1.22 points, or 0.08 percent, to close at 1,487.07.    

The Kingdom’s parallel market Nomu also increased, gaining 119 points, or 0.40 percent, to close at 29,596.35 points. This comes as 44 of the listed stocks advanced while as many as 34 retreated.   

The index’s top performer, the National Co. for Glass Industries, saw a 9.11 percent increase in its share price to close at SR53.90.   

Other top performers included Arriyadh Development Co., which saw a 5.76 percent increase to reach SR27.55, while Almasane Alkobra Mining Co.’s share price rose by 4.41 percent to SR68.70.  

The Power and Water Utility Co. for Jubail and Yanbu also recorded a positive trajectory, with share prices rising 3.26 percent to reach SR57. CATRION Catering Holding Co. also witnessed positive gains, with 3.20 percent reaching SR129.

East Pipes Integrated Co. for Industry was TASI’s worst performer, with the company’s share price dropping by 3.78 percent to SR137.40. 

Arabian Pipes Co. followed with a 3.68 percent drop to SR109.80. Alkhorayef Water and Power Technologies Co. also saw a notable drop of 3.31 percent to settle at SR140. 

Elm Co. and MBC Group Co. were among the top five poorest performers, with Elm Co.’s share declining by 3.24 percent to settle at SR1.127.60 and MBC Group’s falling by 3.18 percent to sit at SR44.15.

On Nomu, Shalfa Facilities Management Co. was the best performer, with its share price rising by 14.03 percent to reach SR95.90. 

Sure Global Tech Co. and Mohammed Hasan AlNaqool Sons Co. also delivered strong performances. Sure Global Tech Co. saw its share price rise by 13.24 percent, reaching SR83.80, while Mohammed Hasan AlNaqool Sons Co. recorded a 12.20 percent increase, standing at SR43.70.

Osool and Bakheet Investment Co. also fared well with 9.81, and Banan Real Estate Co. increased 7.73 percent.

Alqemam for Computer Systems Co. shed the most in Nomu, with its share price dropping by 12 percent to reach SR88. 

Natural Gas Distribution Co. experienced a 5.87 percent decline in share prices, closing at SR54.50, while Horizon Educational Co. dropped 5.66 percent to settle at SR75.

Raoom Trading Co. and Lana Medical Co. were also among the top decliners, with Raoom Trading Co. falling 5.26 and Lana Medical Co. declining 4.89 percent.


Pakistan Stock Exchange may gain at least 27% by end of 2025 — Bloomberg

Updated 18 November 2024
Follow

Pakistan Stock Exchange may gain at least 27% by end of 2025 — Bloomberg

  • Benchmark KSE-100 Index forecast to increase to 127,000 points by Dec. 2025, a 34% rise, from 94,704 points it closed on Friday
  • Key index advanced as much as 0.6% on Monday, taking gains to more than 50% this year, the second best performer globally

ISLAMABAD: Pakistan’s stocks are expected to advance by more than a quarter by the end of next year as the nation’s economy shows improvement under a loan program with the International Monetary Fund and the currency stabilizes, Bloomberg reported on Monday, quoting two brokerage houses. 

The benchmark KSE-100 Index is forecast to increase to 127,000 points by December 2025, or a 34% rise, from the 94,704 points it closed last Friday, according to Topline Securities Ltd. in a report announced on Nov. 16. Arif Habib Ltd. targets the index to reach 120,000 points, a gain of 27%.

“The stage is set for a potential market re-rating with declining interest rates, a stable rupee, and improving macroeconomic indicators,” Karachi-based brokerage Arif Habib commented in a report.

Pakistan’s economy has stabilized with inflation easing from record levels that has allowed the central bank to cut the interest rate for four straight meetings to 15 percent, the lowest in two years. 

The key index advanced as much as 0.6% on Monday, taking its gains to more than 50% this year, the second best performer globally, according to data compiled by Bloomberg.

The equity market will be offering a 37% return including 10% dividend yield by the end of 2025 because of economic stability and falling bond yields, Karachi-based Topline said in a separate report.

Pakistan is also increasingly attracting the attention of foreign investors, particularly in its debt and equity markets, said Arif Habib.


Saudi commercial records surge 68% in 20 months

Updated 18 November 2024
Follow

Saudi commercial records surge 68% in 20 months

RIYADH: Saudi Arabia has seen a remarkable 68 percent growth in commercial records over the 20 months since the implementation of its New Companies Law, according to a recent government report.

The law, which took effect on Jan. 19, 2023, introduced significant reforms aimed at simplifying business processes and fostering a more dynamic corporate environment. By the end of the third quarter of 2024, the number of commercial records had risen to 389,413, up from 230,762 before the law’s introduction, the Ministry of Commerce reported.

Among the law’s key innovations are streamlined processes for setting up joint-stock companies, the ability for shareholders to participate remotely, and improved financing options, including allowing limited liability companies to issue debt instruments. These changes have reshaped the corporate landscape by simplifying company formation and offering flexible financing avenues.

The law also encourages broader ownership by easing the purchase of shares and equity stakes. Notably, it introduces a simplified joint-stock company model and includes provisions for non-profit organizations. Other reforms include allowing sole proprietorships to transition into any company type, modernizing rules for corporate mergers and transformations, and permitting company splits.

Small and micro enterprises are exempt from the requirement of an external auditor, reducing their compliance burdens. Additionally, the law enhances digital services, enabling remote shareholder meetings and decision-making, and removes restrictions across all stages of company formation, operation, and exit.

The reforms also introduce a family charter to govern family-owned businesses and simplify the process for foreign companies to operate in the Kingdom, creating a more flexible and investor-friendly environment.

In its September report, the International Monetary Fund praised the reforms for improving access to financing, reducing fees, and strengthening governance, which has helped attract record levels of foreign investment. The IMF also noted that the reforms have contributed to the growth of non-oil sectors and increased employment.

The IMF further highlighted that the rise in non-oil revenues underscores the effectiveness of these reforms, which have also led to better compliance and alignment of customs procedures with international best practices.

In addition, in September, Saudi Arabia approved new laws related to commercial registration and trade names, further streamlining business operations and improving the overall business environment.

These changes were approved at a Cabinet session in Riyadh on Sept. 17, chaired by Crown Prince Mohammed bin Salman.