RIYADH: The Saudi budget announced by King Salman this week emphasizes the importance of financial sustainability and the need to increase state revenues, according to Finance Minister Mohammed Al-Jadaan. He said that the main goal is to improve the number and quality of services and ensure all infrastructure projects are completed.
Al-Jadaan was speaking at the 2020 Budget Meeting Sessions in Riyadh, which also featured a number of other ministers and officials.
The Ministry of Finance has made public expenditure more efficient and reduced public spending without compromising quality of services, Al-Jadaan said.
“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” he said.
The Kingdom achieved some remarkable successes this year and will continue to build on them, he said. For example, the private sector cooperated in numerous projects, contributing to the reduction in public spending and creating a large number of job opportunities, he noted. The Kingdom will work to further empower the private sector as a key partner in development, said Al-Jadaan, who hopes to see more growth next year.
Ahmed Al-Kholifey, governor of the Saudi Arabian Monetary Agency (SAMA), said that figures from October reveal a 5 percent increase in liquidity, and loans to small and medium-size enterprises grew by 8 percent. SAMA has prepared an ambitious strategy to enhance financial inclusion, to boost and support the financial sector and enhance sustainable economic growth.
“The strategy ensures that all segments of society have access to the official financial system and the number of people having bank accounts rises,” Al-Kholifey said. SAMA is also developing initiatives to fuel the move to a cashless society, he added.
Mohammed Al-Tuwaijri, the minister of economy and planning, said 2019 was an important year for his ministry because it built “an enormous database that should help enhance the process of decision-making.” There was also a major transformation in the balance of payments, he noted, one of the key instruments for economic diversification.
The 2020 budget is designed to create job opportunities and support local services, while improving spending efficiency, he said, and economic-diversification policies are beginning to show results.
The government places great importance on reducing unemployment, Al-Tuwaijri said, and his ministry is working with the Ministry of Labor and Social Development to achieve this. Unemployment now stands at 12.3 percent, down from 12.9 percent last year, and he expects it to drop further by the end of the year. There are plans to create jobs in sectors such as tourism, culture, entertainment and hospitality as part of Vision 2030.
Bandar Al-Khorayef, the minister of industry and mineral resources, said his ministry works to improve and preserve gains in the industrial and mining sectors and create catalysts for investment and sustainable growth. An export bank will be launched soon, he added, noting that the financing of export operations reached SR 5 billion ($1.3 billion) this year.
“The industry and mining sector require major capital and a long-run investment lookout,” he said. “Investment in the sector involves many risks and the ministry must take this into consideration when it passes legislation, to ensure the sector and investors make profits.”
Saleh Al-Rasheed, governor of General Authority of Small and Medium Enterprises, said the organization works to create a competitive environment that encourages new businesses, by providing innovative financing solutions and investment opportunities. As of October, he noted, there were 550,725 SMEs in the Kingdom, contributing 28 percent of GDP.
Princess Haifa Muhammad, deputy chairwoman of the Saudi Commission for Tourism and National Heritage, said the tourism sector received a major boost from the increase in entertainment events. The special “Seasons” launched across the country created 50,000 jobs for young Saudis, and spending in the sector increased by 12 percent, she said.
The Kingdom has welcomed 115,000 since tourist visas were launched, she revealed, adding that the sector is growing at a rate of 3.9 percent, outpacing the global economy which is growing at 3.5 percent.
Justice Minister Walid Al-Samaani said the achievements of his ministry in the past few years have contributed greatly to improving the efficiency of the judicial system.
“We work to establish effective procedural governance and achieve sought-after digital transformation,” he said, adding that 15 electronic services were launched this year to expedite the processing of legal cases.
Housing Minister Majid Al-Hogail said the ministry served 300,000 families this year, providing them with housing and financing options. Of those, 165,000 received housing loans worth SR78 billion, 106,000 moved into homes and 90,000 received a land grant.
He highlighted the importance of enhancing partnerships with the private sector, which so far have helped provide 125,000 housing units in 70 projects with a total value of SR62 billion. In 2020, the ministry plans to build 100,000 housing units worth SR 65 billion.
Ahmed Al-Rajhi, the minister of labor and social development, said the ministry aims to create 1.5 million jobs by 2030. He added that the value of social financing offered to more than 60,000 citizens reached SR3.5 billion this year, and 2,462 small and medium-size enterprises benefited from SR526 million. In addition, 2843 non-profit organizations were founded, a 26 percent increase on last year.
The proportion of women in the workforce reached 25.3 percent this year, he added, and more than 175,500 jobs were Saudized.
Minister of Health Dr. Tawfiq Al-Rabeeah said the ministry plans to open 10 hospitals next year and ban the use of hydrogenated fats. It will continue to focus on public health initiatives to reduce chronic diseases and conditions such as obesity and smoking, and plans to improve health care options. This year, he added, the waiting list for outpatient departments at public hospitals fell from 59 to 24 days.
Cash boost for Saudi jobs, homes and health
Cash boost for Saudi jobs, homes and health
- Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
- The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year
Kingdom’s digital ‘leapfrog’: Intel executive VP highlights 20-year Saudi partnership
- Speaking on the sidelines of the WEF, Christoph Schell emphasized the Kingdom’s commitment to growth and its importance as a key market for Intel
- Says technology plays a crucial role in the Kingdom’s societal development, with a key focus on fostering innovation and bridging the digital divide
DAVOS: Saudi Arabia’s Vision 2030 has enabled the Kingdom to “leapfrog other countries,” creating a robust ecosystem that aligns with Intel’s digital transformation strategy, the company’s executive vice president and chief commercial officer told Arab News.
Speaking on the sidelines of the World Economic Forum in Davos, Christoph Schell emphasized the Kingdom’s commitment to growth and its importance as a key market for Intel, building on a 20-year legacy of collaboration.
“Having lived for eight years in the Middle East, I know that once you define a plan, and you work that plan, that plan will also work out,” Schell said. “So there’s a lot of trust that this vision will become reality.”
Schell, who previously served as HP’s general manager for the Middle East, described the region — and Saudi Arabia specifically — as being at an “exciting historical moment” in terms of technology, innovation and business, positioning the Kingdom as a “crucial market in size and influence.”
Intel has maintained a strong presence in Saudi Arabia for more than two decades, with its innovation and priorities evolving in response to the Kingdom’s changing needs.
“There’s a very long legacy that the Kingdom has of engaging with Intel and for the population of Saudi Arabia to actually use Intel in their daily lives. That’s true on the consumer side, but that’s also true for the large corporations,” Schell said.
“What I see happening for the first time is that the Saudi customers have been, over these 20 years of engagement, buying monolithic products that Intel had to offer. I think this industry is changing as such that we are talking more and more about custom solutions, custom chips, and these are the first (type of) engagements that we have with Saudi customers now, cross-customization.”
He attributed this shift to significant investments in digital infrastructure and the growing tech sophistication of Saudi consumers and businesses.
“I see Saudi not just consuming technology that is off the shelf, but to demand technology that is best in the very specific requirements that you have,” he said.
Highlighting examples, Schell said that Saudi Arabia’s extreme temperatures had led to customized design requests for products operating in harsh conditions, such as on oil platforms and in peak summer heat.
“That requires different design principles across different products. And that’s the opportunity for us,” he said.
In January 2024, Intel announced a partnership with Aramco Digital to establish Saudi Arabia’s first Open RAN (radio access network) development center. Open RAN technology, which allows multiple service providers to deliver services over the same network infrastructure, is expected to accelerate innovation and drive the Kingdom’s digital transformation in line with Vision 2030.
“If you want to scale a data center, if you want to grow a data center, if you want to grow a cloud operation, getting access to power is super important,” he said.
“Obviously the Kingdom has a lot of power, but on the other hand, it is also demanding for that power to be delivered in the most efficient way, and for the computer to be cognizant of power not being there in abundance, but to be managed in a way that is responsible.”
Schell argued that this evolution is a consequence of the cultural and societal shifts in Saudi Arabia, emphasizing the country’s focus on innovation and bridging the digital divide.
“Technologies (are) at the heart of societal development. And I think a lot of the goals that you have as a society is to innovate, is to make sure that there’s no digital divide within the country,” he said.
As part of its vision for the future, Saudi Arabia is prioritizing the development of a robust tech ecosystem by attracting manufacturers, creating jobs and nurturing local talent — a strategy that Schell described as “sustainable.”
“It has a lot to do with education, but I think beyond educating, the ability to design products together, to engineer products together, is something that needs to start, in particular, working together with select universities,” he said.
Schell emphasized the role of AI in shaping the Kingdom’s future, particularly in practical applications such as education and daily life.
“The output that an AI engine delivers is based on the model it uses. And I think what is very important for Saudi Arabia in this context is to have models that have cultural awareness, that have cultural content.”
Drawing on his own experience, Schell highlighted the importance of localization.
“I live in the US right now. I’m German. If I use a US model, a US-centric model, I will get US-centric answers. (While) If I use a Saudi-centric model, I will get Saudi-centric answers.
“This is very important from a culture and from a historic point of view,” he added, stressing the “government’s responsibilities” in fostering an ecosystem that supports culturally relevant AI.
AI no longer an experiment, but a necessity for business, says Publicis Sapient chief
- Nigel Vaz calls for end to ‘wait-and-see’ approach, saying businesses need to ‘act now or risk being left behind’
- Middle East laying the groundwork for ‘truly transformational moment’ in global digital future, says CEO
DAVOS: Technological innovation and its potential to reshape economies is inspiring growing optimism among business leaders despite a global backdrop of geopolitical tension, economic uncertainty, and the urgent challenges of climate change, the CEO of Publicis Sapient told Arab News.
Nigel Vaz, speaking at the annual meeting of the World Economic Forum in Davos, said he sees a moment of both caution and opportunity for businesses worldwide.
“In many ways, businesses thrive on certainty,” Vaz said. “After years of unpredictability, there’s now a sense of optimism about what lies ahead. Investments in technology, particularly in AI, are helping unlock new economic opportunities, from reducing costs to driving transformational growth.”
While acknowledging lingering concerns over inflation and the impact of macroeconomic policies such as tariffs, Vaz believes the focus is shifting toward pro-growth initiatives, including government-led reforms to alleviate pressure on businesses.
“Governments are increasingly exploring tax reforms and other measures to create a more favorable environment for growth,” he said. “And alongside that, investments in AI and digital innovation are starting to deliver real results, moving from proof-of-concept to large-scale implementation.”
With artificial intelligence the hot topic of the day, Vaz said enthusiasm around AI is no longer solely about its potential but also its measurable impact on businesses.
“Last year, AI was something everyone was interested in. This year, they’re seeing the economic benefits of it,” he said.
Vaz pointed to several ways Publicis Sapient is leveraging AI to accelerate transformation, with one significant area in marketing, where AI-driven platforms are enabling businesses to personalize their messages and reach audiences more efficiently.
Publicis Sapient has partnered with its parent company, Publicis Groupe, to invest $300 million in advanced marketing technologies.
“It’s not just about content generation anymore,” Vaz said. “AI is helping with everything from content audits to ensuring the right message gets to the right person at the right time. The ability to connect identity and tailor communication is driving incredible acceleration.”
AI’s influence is also being felt in operational areas traditionally weighed down by inefficiencies.
Publicis Sapient’s work includes modernizing mainframe systems — once seen as expensive and slow — through AI-driven solutions.
“We’ve taken what used to be 10-year migration projects involving millions of lines of code and compressed them into just three years,” Vaz said. “This is digital red-tape removal in action, and it’s allowing businesses to innovate far more quickly than they ever thought possible.”
Vaz also highlighted the Middle East as a critical player in the future of AI and digital transformation. He pointed to countries such as Saudi Arabia and the UAE, where governments are making significant infrastructure investments to foster innovation.
“The Middle East is laying the groundwork for a truly transformational moment,” Vaz said. “If you think of AI as the electricity of the 21st century, the investments being made here are akin to building the power grids of the industrial revolution. It’s about creating an environment where businesses can innovate and thrive.”
He also praised the region’s commitment to developing local talent to drive these initiatives.
“I was speaking with a minister (this week), and he stressed that while they’re putting the infrastructure in place, it’s Saudi talent that’s building and leading these projects. That’s a powerful message about the long-term vision here.”
Looking ahead, Vaz urged business leaders to abandon a “wait-and-see” approach to AI and instead embrace the transformative potential of the technology.
He said that 2025 will be a pivotal year, adding that “the gap between those who adopt AI and those who don’t is going to widen dramatically. Businesses need to act now to ensure they don’t get left behind.”
Vaz added that leaders should move beyond treating AI as a technical tool and instead reimagine their entire business models. “This is not just about technology — it’s about fundamentally rethinking how your business operates and delivers value.”
As Publicis Sapient continues to expand its footprint in key regions such as the Middle East, Vaz is clear about his priorities for the future. “Our focus is on enabling businesses to learn and iterate in real-world applications,” he said. “Whether it’s in travel, financial services, or retail, we’re seeing tremendous benefits from these transformations. The key now is to keep moving forward.”
In a world still grappling with uncertainty, leaders such as Vaz see the promise of AI and digital transformation as a beacon of opportunity. “The future is here — it’s just a matter of who seizes it first,” he said.
Global Collaboration Village: Redefining engagement with Next-Gen AR and VR at Davos
- This year’s debut of Next-Gen AR at Davos has focused on collecting feedback to refine the platform
DAVOS: The World Economic Forum’s Global Collaboration Village is using augmented reality and virtual reality technologies to tackle some of the world’s most pressing issues, the president of the initiative told Arab News.
Its Next-Gen platform, developed in partnership with Accenture and powered by Microsoft Mesh, debuted at the WEF annual meeting in Davos this week, and Chieh Huang said that it aimed to extend the collaborative impact of Davos beyond the annual meeting by creating a virtual space that fostered engagement year-round.
He said: “So we often get the question, well, what is the Global Collaboration Village? We’re here in Davos — isn’t this the global collaboration village? And in some sense, yes, it is.”
He continued: “But as Davos and our annual meeting gets more crowded, we want to see if there are ways for us to extend impact throughout the world, 365 days a year.”
This year’s debut of Next-Gen AR at Davos has focused on collecting feedback to refine the platform.
“This is a platform in which we want to stoke more conversation between public entities and private entities,” Huang said. “As you build a platform and any technology product, you want to hear the feedback of, well, what worked well, what didn’t work well. And what better way to do that than here (at the annual meeting), where all of our constituents and users are here.”
Huang emphasized the importance of user input in shaping the experience.
“The graphics are higher fidelity, they’re photorealistic,” he said. “We’re mixing virtual reality in some cases where we want to transport you to a location, but other times we just want to sit around a table, visualize a 3D object, and say, ‘Hey, have you noticed this thing?’ or, ‘Have you noticed that thing?’ Using augmented reality when it’s apropos.”
Feedback so far has been overwhelmingly positive. “The most-used term this week has been: Wow,” Huang said. “When you see the state-of-the-art hardware and software these days, it is a wow moment.”
The tech offers an alternative to traditional 2D communication platforms such as Zoom or PowerPoint by immersing users in a 3D environment.
“If you talk to anyone that’s ever been in an immersive environment, it changes your perception,” Huang explained. “Through that immersiveness, there is a higher level of engagement.”
The platform also aims for inclusivity and device-neutrality. “Next-Gen is available not only with Meta devices but Apple’s Pro as well, and in the future, we want to add more devices onto that as well,” Huang said.
One example of the platform’s potential lies in its use by Saudi Arabia at this year’s WEF to showcase the Kingdom’s Vision 2030 initiative.
“From the outside, I don’t live in Saudi Arabia, I don’t live in the region. It might seem very foreign to say, ‘Hey, there’s this Vision 2030, where they’re trying to transform an entire country and society,’” Huang said.
“You can send around leaflets, you can watch that on YouTube, or maybe get a PowerPoint, but will that actually show and demonstrate what’s really going on? You could say nothing can replace going there. But is there an in-between? That’s where the Global Collaboration Village can shine,” he said.
The GCV mission is clear; to foster collaboration, spark innovation and enable participants to visualize solutions in transformative ways.
Huang concluded: “We want this platform to be a space where global solutions can be visualized, tested and realized — ultimately shaping a better future for all.”
Middle East’s rise to becoming global aviation hub ‘absolutely incredible,’ Menzies chairman says
- Hassan El-Houry says aviation vital for global, domestic economies
- Forecasts 300% growth over 10 years, $200bn investment in airports
DAVOS: The Middle East’s rise as a global aviation hub has been “absolutely incredible” and should be a source of pride, according to Hassan El-Houry, chairman at Menzies Aviation.
Speaking to Arab News recently at the annual meeting of the World Economic Forum in Davos, El-Houry said the region’s aviation growth over the past two decades demonstrates that “the impossible is possible.”
“In 20 years the Middle East has become an absolute hub for aviation. It’s absolutely incredible. It really makes us proud.”
He added: “The Middle East started from a very low base. If you go back 20 years, Dubai, Abu Dhabi, Doha, Saudi Arabia — they were not transit hubs.
“I remember traveling to London or Europe or East Asia, and in hotels, you’d see four clocks — San Francisco, New York, London and Tokyo. Today, there’s one in the middle: Dubai. Finally, the Middle East is now seen as a hub, and it’s great.”
Looking ahead, he said the projections for the region were positive. “We’re forecasting 300 percent growth over the next 10 years in aviation and almost $200 billion in investment in airports.
“This outpaces any other region. It’s absolutely incredible what we’re going to see over the next five (to) 10 years for the Middle East, particularly the GCC,” he said.
And globally, he said the outlook was similarly bright, while reflecting on the unprecedented challenges the industry faced during the COVID-19 pandemic.
“That shows two things: first, we’ve fully recovered from COVID-19, which is great, and second, it shows the resilience of the aviation sector,” he said.
“We had literally the largest and most impactful crisis, which challenged the aviation sector. We lost a lot of people who worked in aviation — they sought jobs elsewhere, and rightfully so. A lot of investment went elsewhere,” he added.
Despite these setbacks, El-Houry emphasized aviation’s crucial role in the global economy and its ability to connect people. “Governments were asking themselves, why should we invest in aviation when it’s so sensitive to shocks?
“What we can see now is that aviation is resilient and is absolutely critical to the global economy, to domestic economies, for people. Connectivity matters. People want to connect, people want to see each other.
“Just look around here at WEF in Davos — not a single person is wearing a mask. That just shows that people want the human connection, and aviation’s resilience makes that happen,” he said.
While optimistic about global and regional progress, El-Houry expressed some concerns. “One region which has not fully recovered is Africa, which has been struggling for many reasons — debt, inflation, some geopolitical issues, and lack of investment,” he said.
“Africans make up 17 percent of the world’s population but only 2 percent of the world’s travelers, a statistic that has remained unchanged in the past 10 years. I’d love to see Africa bridge that gap and develop.”
He called for greater investment and attention to the continent, highlighting the potential of aviation to unlock economic and social opportunities.
El-Houry concluded with a clear message for world leaders that aviation must be treated as an economic priority. “Aviation is no longer a privilege for the 1 percent. It’s super important for everybody across the socio-economic spectrum.”
“In the past, governments used to look at aviation as another way of taxing the 1 percent. Today, aviation is important for education, for healthcare, for family connections, for trade — everything.
“So, let’s make sure that aviation remains a priority, a pillar of the economy, and super important for economic growth,” he urged.
Saudi Arabia seeing steady growth in non-oil economy says economy minister
DAVOS: Saudi Arabia is seeing steady growth in the non-oil economy, said Saudi Minister of Economy and Planning Faisal Alibrahim in Davos on Friday.
Alibrahim called for action-oriented leadership in global economies and said that Saudi Vision 2030 was an example of a strong campaign led by bold leadership that developed solutions for economic problems.
“Vision 2030 is a long-term campaign in order to restructure the economy. We care about the non-oil economy, it currently represents 52 percent of the GDP for the first time,” he said.
Alibrahim said that the Kingdom expected to close 2024 with 3.9 percent growth in the non-oil economy.
He followed up by saying 2025 was predicted to see 4.8 percent growth, and by 2026 growth would equate to 6.2 percent.
Alibrahim commented on the longstanding friendship between the Kingdom and the US.
“Saudi Arabia’s position is to have a strong partnership with all its partners and friends. Tariffs have been used as a tool in the economy when they are for an objective and time bound. Tariffs can help create a competitive environment so local industries can start,” he said.
Kristalina Georgieva, managing director of the International Monetary Fund, said that Saudi Arabia had the right strategy when dealing with tariffs.
“Trade among politically aligned countries is higher. But countries that are friends with everybody perform the best,” Georgieva said.
Alibrahim ended the session by announcing a regular world economic global forum meeting in the Kingdom set to be held in the spring of 2026.
