Exxon Mobil quarterly profit falls 5.2 percent on weak refining and chemical margins
Net income attributable to Exxon fell to $5.69 billion, or $1.33 per share, in the three months ended Dec. 31, from $6 billion, or $1.41 per share, a year earlier
Updated 01 February 2020
Reuters
HOUSTON: Exxon Mobil has reported a 5.2 percent drop in fourth quarter profit, as assets sales propped up flat year-over-year oil and gas output and weakness in its refining and chemicals businesses.
Oil companies last quarter suffered from weaker prices for their products, and in Exxon’s case it has been spending heavily to boost its oil output to reverse production declines.
The Exxon Mobil stock is down nearly 29 percent since Chief Executive Darren Woods took over three years ago. Its production in the Permian Basin, the largest US shale field, was up 54 percent from a year ago. But quarterly profits on US production were down 74 percent as the company spent heavily to boost output and suffered from lower natural gas prices.
Overall, the exploration and production business, its largest, benefited the most from the sale of production assets in Norway for $4.5 billion to Vår Energi AS.
Analysts said the weakness across its businesses means Exxon will still have to borrow to cover its shareholder dividend.
Investors have been pushing oil companies to improve their returns by increasing dividends or share buybacks.
Exxon has frozen its share repurchases except for offsetting dilution for employee awards.
“Unlike its peers, the company is not generating free cash flow given its large capital spending program,” said Jennifer Rowland, analyst with Edward Jones.
Net income attributable to Exxon fell to $5.69 billion, or $1.33 per share, in the three months ended Dec. 31, from $6 billion, or $1.41 per share, a year earlier.
Excluding one-time items, per share earnings were 41 cents, below Wall Street’s consensus expectation of 43 cents, according to Refinitiv. Analysts earlier this month had slashed estimates from 71 cents after the company warned of weakness in chemicals and refining.
Unlike its peers, the company (Exxon Mobil) is not generating free cash flow given its large capital spending program.
Jennifer Rowland, Analyst with Edward Jones
The largest US oil producer’s oil and gas output rose less than 1 percent to 4.02 million barrels per day in the quarter, the sixth quarter in a row of year-over year gains.
Earlier this week, the company raised its Guyana oil estimates by 2 billion barrels, bringing total recoverable oil and gas resources from the discovery to more than 8 billion barrels.
Also on Friday, Chevron posted a fourth quarter loss as the oil major booked an impairment charge of $10.4 billion related largely to a deep-water Gulf of Mexico project, shale gas assets in Appalachia and the Kitmat LNG project in Canada.
The company had in December warned of up to $11 billion in asset writedowns and said it was considering the sale of its stake in the Appalachian shale and in the proposed Kitmat project.
Net loss attributable to Chevron was $6.61 billion, or $3.51 per share, in the three months ended Dec. 31, compared with a profit of $3.73 billion, or $1.95 per share, a year earlier.
The company also booked a gain of $1.2 billion in the quarter on the sale of its UK Central North Sea assets.
Chevron’s net oil equivalent production was flat at 3.08 million barrels per day in the quarter, while average sales prices fell in the US and internationally.
NEOM’s Oxagon leads the way in sustainable industrial revolution
Updated 4 sec ago
Reem Walid
RIYADH: Oxagon, the industrial cornerstone of NEOM, has solidified its position as a critical hub for logistics and manufacturing, perfectly aligned with Saudi Arabia’s Vision 2030.
Through a blend of innovation, sustainability, and technological progress, Oxagon has become a global model for future industrial development. Spanning approximately 50 sq. km, it ranks among the largest floating industrial complexes worldwide and is on track to achieve 100 percent renewable energy use by 2030.
The accomplishments of 2024 underscore Oxagon’s commitment to economic diversification and environmental responsibility, offering valuable lessons for businesses. By prioritizing sustainability, embracing cutting-edge technologies, and showcasing adaptability, Oxagon sets new benchmarks for the logistics and manufacturing sectors.
Driving sustainability
Oxagon stands as a beacon of sustainable practices within logistics and manufacturing. Paolo Carlomagno, partner at Arthur D. Little Middle East, notes that Oxagon’s initiatives align with the core objectives of Saudi Vision 2030, aiming to create a diversified economy while reducing environmental impact.
“For example, Oxagon’s logistics operations integrate renewable energy sources, such as solar and wind, which have collectively reduced carbon emissions by an estimated 25 percent compared to traditional models,” Carlomagno explained.
Paolo Carlomagno, partner at Arthur D. Little Middle East, notes that Oxagon’s initiatives align with the core objectives of Saudi Vision 2030, aiming to create a diversified economy while reducing environmental impact.
“Additionally, the manufacturing ecosystem embraces circular economy principles, focusing on resource efficiency and waste minimization. By 2026, Oxagon’s waste-to-resource initiatives are projected to recycle 90 percent of industrial waste generated within the facility,” he added.
Carlomagno further emphasized that advanced systems such as green building technologies and smart water management are integral to Oxagon’s strategy to minimize its environmental footprint.
“For instance, Oxagon employs advanced desalination techniques that use 40 percent less energy than conventional methods, providing a sustainable water supply for both industrial operations and local communities,” he noted. “These efforts create a resilient, eco-friendly industrial ecosystem capable of adapting to future challenges.”
Collaboration is central to Oxagon’s strategy, with partnerships with global corporations like Siemens and Schneider Electric driving the accelerated adoption of sustainable practices.
“These collaborations have led to the implementation of innovative solutions, such as energy-efficient manufacturing systems and low-carbon supply chain logistics, setting a standard for the region and beyond,” he added.
FASTFACTS
Oxagon’s logistics operations integrate renewable energy sources, such as solar and wind, which have collectively reduced carbon emissions by an estimated 25 percent compared to traditional models.
Oxagon employs advanced desalination techniques that use 40 percent less energy than conventional methods, providing a sustainable water supply for both industrial operations and local communities.
Real-time demand forecasting has allowed Oxagon’s partners to reduce inventory holding costs by 20 percent, reflecting its agility in a dynamic global market.
Technological innovations
In 2024, Oxagon has continued to leverage cutting-edge technologies to revolutionize logistics and manufacturing operations. Carlomagno noted that technologies such as artificial intelligence, robotics, and the Internet of Things have played a crucial role in streamlining processes, enhancing predictive maintenance, and optimizing inventory management, resulting in efficiency gains of approximately 30 percent compared to 2023.
“One notable advancement has been the integration of autonomous electric vehicles within its logistics network. These vehicles, combined with AI-driven route optimization algorithms, have reduced delivery times by 20 percent and operational costs by 15 percent,” he said.
“Additionally, smart manufacturing hubs equipped with IoT-enabled machinery have increased production accuracy by 25 percent, while reducing downtime through predictive maintenance protocols.”
Looking forward, Carlomagno highlighted that Oxagon’s commitment to emerging technologies promises further industry disruption.
“The adoption of blockchain for transparent supply chain management is expected to reduce fraud and improve traceability, while quantum computing — currently under exploration — offers the potential to solve complex logistical challenges at unprecedented speeds. Such innovations are expected to drive a projected 10 percent annual growth rate in Oxagon’s industrial output over the next five years,” he said.
Federico Pienovi, chief business officer and CEO for APAC & MENA at Globant, outlined Oxagon’s use of AI-driven analytics, blockchain-enabled supply chain management, and autonomous systems to create a highly connected and efficient operational ecosystem. These advancements have improved transparency, reduced inefficiencies, and streamlined processes, enabling smarter decision-making.
“For example, AI and machine learning have played pivotal roles in logistics, enabling predictive models that optimize shipping schedules. By analyzing port availability in real-time, these systems ensure vessels depart and arrive with precision, avoiding costly delays and idle time. Similarly, blockchain technology ensures supply chain transparency, building trust and resilience across global operations,” said the CEO.
In manufacturing, robotics, supported by AI, has revolutionized production lines, offering unmatched precision, scalability, and flexibility.
“IoT sensors have elevated predictive maintenance to a new level, reducing downtime and enhancing overall equipment efficiency. Combined, these innovations are driving higher product quality, creative business models, and smarter scalability,” he said.
Federico Pienovi, chief business officer and CEO for APAC & MENA at Globant, outlined Oxagon’s use of AI-driven analytics, blockchain-enabled supply chain management, and autonomous systems to create a highly connected and efficient operational ecosystem.
Looking to the future, Pienovi emphasized that Oxagon’s connected experiences will further enhance operations, not just in factories and logistics but also for employees. By integrating data from IoT, AI, and machine learning, Oxagon offers seamless workflows while maintaining a people-centric approach, improving employee satisfaction, operational agility, and productivity.
Evolving market dynamics
As global markets evolve, Oxagon provides a model for how businesses can adapt and thrive. Carlomagno noted that Oxagon’s strategy revolves around three core pillars: collaboration, sustainability, and digital transformation. By forming strategic partnerships with technology providers, academic institutions, and multinational corporations, Oxagon has positioned itself as an innovation hub.
“For example, a partnership with MIT enabled the establishment of a data-driven logistics optimization platform that has increased supply chain efficiency by 15 percent,” he said.
Oxagon’s consumer-centric approach also sets it apart. By leveraging data analytics and consumer feedback loops, the company ensures its products and services meet evolving market demands.
“For instance, real-time demand forecasting has allowed Oxagon’s partners to reduce inventory holding costs by 20 percent, reflecting its agility in a dynamic global market,” said Carlomagno.
Pienovi emphasized that embracing digital transformation is a critical strategy for future success.
“Oxagon has placed advanced technologies like AI, IoT, edge computing, and automation at the core of its operations. By integrating predictive AI models, Oxagon has optimized its supply chain management, enabling it to forecast demand and identify the most efficient logistics routes,” he said.
The CEO added: “At the same time, IoT sensors and robust platforms have elevated operational efficiency, improved product quality, and enhanced risk mitigation efforts. These technologies have not only transformed manufacturing and logistics but have also paved the way for connected experiences, where personalized insights enhance decision-making across operations.”
Sustainability remains a key pillar of Oxagon’s strategy. “By integrating circular economy principles, Oxagon has redefined what it means to operate in an environmentally conscious manner, aligning itself with the growing consumer demand for responsible and eco-friendly brands. Its efforts in sustainability are not merely a corporate responsibility but also a strategic driver for differentiation in the global market,” said Pienovi.
In an increasingly digital business environment, Pienovi highlighted the growing importance of data privacy and cybersecurity.
“Oxagon’s commitment to compliance with regulations, such as Saudi Arabia’s NCA and international standards, underscores its focus on maintaining trust and ensuring secure operations,” he concluded.
As global business becomes more interconnected, Oxagon’s initiatives in 2024 provide a powerful model for how businesses can successfully adapt by integrating innovation, sustainability, and collaboration.
Jordan to record nearly 3% economic growth in 2025, experts project
Updated 4 min 10 sec ago
Reem Walid
RIYADH: Jordan is set to experience an economic growth rate between 2.5 percent and 3 percent in 2025, bolstered by improvements in the business environment and increased investments, according to economic experts.
Adli Kandah noted that this growth would likely lead to a slight reduction in unemployment, although challenges in the labor market persist, the Jordan News Agency reported.
The projected growth aligns with the government’s recent corrective measures in the final quarter of 2024, including reduced penalties for unlicensed vehicles and tax cuts for electric cars. These steps are part of a broader effort to improve economic conditions and enhance both financial and social stability.
Jordan has maintained a steady average growth rate of 2.5 percent over the past decade, according to the World Bank, providing a solid foundation for future economic expansion.
Kandah also highlighted positive indicators, including regional developments that could benefit Jordan, particularly in foreign trade and investment sectors. He pointed to potential gains from developments in Syria, especially if international sanctions are lifted.
Raad Al-Tal, professor of Economics at the University of Jordan, noted that the country’s political stability and economic reforms have helped it remain resilient. Despite regional geopolitical challenges, including the ongoing situation in Gaza, Jordan has shown adaptability.
“The tourism sector, in particular, has shown notable recovery, bolstered by improved regional security and increased visitor numbers,” Al-Tal said, as reported by Pentra.
He also emphasized the positive impact of remittances from Jordanian expatriates, which have strengthened the country’s monetary reserves.
Ahmad Al-Majali, an economic researcher, also confirmed that despite external pressures and regional political turbulence, Jordan’s economy has shown positive performance in 2024.
Al-Majali attributed this resilience to the central role of monetary policy in maintaining stability and the progress achieved under the Economic Modernization Vision.
“The monetary policy has served as a fundamental pillar for the economy during this period,” he said.
He further emphasized that the Economic Modernization Vision has spurred optimism among investors, contributing to increased economic activity.
Looking ahead to 2025, experts anticipate that lower global interest rates could reduce local financing costs, providing an additional boost to investment. However, they stress that continued economic reforms and efficient public spending are crucial to sustaining this positive trajectory.
Public finances of GCC countries show surplus in 2024, 2025: report
GCC countries posted a financial surplus of $134 billion in 2022, representing 6.1% of their GDP
Total public spending in the GCC reached its highest level in 2023, hitting $639 billion
Updated 27 min 19 sec ago
Nirmal Narayanan
RIYADH: Public finances in the Gulf Cooperation Council countries are expected to maintain a stable trajectory, with a projected stabilization of public debt at 28 percent of the gross domestic product in 2024 and 2025.
According to the latest data from the Gulf Statistical Center, the region’s fiscal outlook remains positive, building on a surplus of $2 billion in 2023, Emirati news agency WAM reported.
This comes as GCC countries posted a financial surplus of $134 billion in 2022, representing 6.1 percent of their GDP. Public debt reached approximately $628 billion in 2023, compared to $144 billion in 2014, while the debt-to-GDP ratio peaked at 40.3 percent in 2020 before declining to 29.8 percent in 2023.
Earlier this month, Saudi Arabia reached a milestone in public financial management by successfully transitioning to the International Public Sector Accounting Standards on an accrual basis. The move aligns with the Kingdom’s broader efforts to modernize its public sector financial practices as part of its Vision 2030 agenda.
GCC-Stat said that financial risks for countries in the region will remain low in the short term, driven by forecasts of locally and globally stable or declining interest rates.
Citing recent reports from credit rating agencies, GCC-Stat added that the credit attractiveness of the regional countries is expected to improve, which will allow for the rescheduling of public debts at lower financial costs.
Affirming the growth of GCC economies, credit rating agency Moody’s projected in November that Saudi Arabia’s economy will grow by 1.7 percent this year, before accelerating to 4.7 percent in 2025 and 2026. The agency also forecasted that the UAE’s economy will expand by 3.8 percent in 2024 and 4.8 percent in 2025.
GCC-Stat said that the fiscal budget reforms planned by GCC nations could contribute to striking a balance between maintaining economic growth and sustaining public spending.
According to the report, total public revenues in the GCC amounted to $641 billion in 2023, with oil revenues contributing 62 per cent. In 2022, public revenues in the region totaled $723 billion, with oil revenues accounting for 67 percent.
Total public spending in the GCC reached its highest level in 2023, hitting $639 billion. The report said that current spending accounted for 85 percent of public spending in 2023, while investment spending comprised 15 percent.
Saudi startup investment shifts focus to AI, enterprise software, and SMEs
Updated 29 December 2024
Nour El-Shaeri
RIYADH: Saudi Arabia’s startup ecosystem is gaining momentum, propelled by government-backed initiatives and an influx of investor interest. While the fintech sector remains a primary focus, emerging opportunities in artificial intelligence, enterprise systems, and small-to-medium enterprise investments are drawing attention.
As part of its Vision 2030 initiative to reduce its dependence on oil, Saudi Arabia is positioning itself as a regional hub for innovation, creating fertile ground for startups and attracting significant venture capital flows.
Why fintech?
Tushar Singhvi, deputy CEO of Crescent Enterprises and head of its investment platform, CE-Ventures, discussed the enduring potential of the fintech sector in an interview with Arab News. He pointed to the Kingdom's robust national strategy, which aims to establish 525 fintech companies by 2030, as a key driver behind sustained growth.
“Saudi Arabia’s fintech sector is set for sustained growth, driven by a clear national strategy to have 525 fintech companies by 2030,” Singhvi said.
In 2023, Saudi Arabia captured 58 percent of all fintech venture capital in the Middle East and North Africa. Singhvi also highlighted pivotal moves like the acquisition of Tweeq by Tabby and the launch of Samsung Pay, both of which support Saudi Arabia’s goal of becoming a cashless society.
“These efforts position Saudi Arabia as a leader in fintech innovation, making the sector highly attractive to investors,” Singhvi stated.
He added that this fintech momentum is aligned with the broader push for economic diversification. Vision 2030, Saudi Arabia’s ambitious roadmap for its post-oil economy, is channeling investments into long-term growth sectors like fintech, logistics, and healthcare.
“Investors are focusing on sectors with long-term growth potential, like financial services, healthcare, and renewable energy,” Singhvi said, emphasizing a rising interest in ESG-aligned investments that prioritize sustainability and social impact.
The fintech sector’s growth is further accelerated by the relative underdevelopment of traditional financial services in the region, according to Khaled Talhouni, managing partner at Nuwa Capital. He noted that the services available to both consumers and businesses from traditional financial institutions remain limited compared to the maturity of the overall economy.
“The availability and depth of services to both consumers and firms from traditional financial institutions like banks remains woefully under-developed relative to the maturity of the overall economy,” Talhouni explained.
This gap presents significant opportunities for fintech startups. However, Talhouni anticipates market consolidation, with smaller companies potentially being acquired by larger players. “I do suspect some consolidation in the space with smaller players folding into larger ones,” he said.
The rise of AI
AI is another area where Saudi Arabia is positioning itself for major growth. Singhvi pointed to the partnership between the Saudi Data and Artificial Intelligence Authority and NVIDIA to build one of the largest high-performance computing data centers in MENA.
“Saudi Arabia is rapidly aligning with global AI trends, aiming to be a top 15 AI leader by 2030,” Singhvi explained. Along with such investments, there is a concerted effort to build a skilled workforce, ensuring that the Kingdom can adopt AI and enterprise technologies to fuel its digital transformation.
Talhouni, however, sees the real opportunity for startups in integrating AI into day-to-day business operations rather than in large-scale AI infrastructure.
“Rather than investing in AI infrastructure/LLMs (large language models) etc., startups will incorporate AI into their normal course of business naturally across the region,” he said. “AI will become embedded in the offerings of all startups,” but he does not expect many companies in the region to invest deeply in large-scale AI or deeptech, except for specific use cases.
Talhouni emphasized that AI will likely serve as an enabling technology, integrated into existing business models, rather than being the primary focus for most startups.
Shifting focus
Singhvi anticipates a shift in investor attention toward enterprise systems as Saudi companies scale up and strive for global competitiveness. He highlighted that enterprise software will play a pivotal role in the Kingdom’s broader digital transformation efforts.
“We are seeing more and more SaaS (Software as a Service) companies emerge from the region and the Kingdom,” Talhouni observed. However, scaling such businesses can be challenging, given the relatively small number of large companies in the region. “SaaS/Enterprise requires a large number of firms and a relatively large economy to flourish,” he said. Despite these hurdles, Talhouni noted that niche opportunities exist for creating regional champions in the sector.
Why not oil and gas?
While the oil and gas sector has traditionally been the cornerstone of Saudi Arabia’s economy, it poses significant challenges for startups. Singhvi explained that the sector’s complex regulations and high capital requirements create barriers to entry for smaller companies. Established industry giants dominate research and development, making it tough for new players to break into the space.
“The oil and gas sector’s complex regulations and high capital requirements create significant barriers for startups,” Singhvi said.
However, Singhvi noted the growing opportunities for energy-tech startups, particularly those focused on digital transformation and sustainability, through partnerships with oil and gas companies.
“There has been a rise in strategic collaborations between oil and gas companies and energy-tech startups, which is accelerating the shift toward digital innovation,” he said.
Talhouni offered a broader perspective, suggesting that much of the innovation in the oil and gas sector requires specialized research and development infrastructure, which the region still lacks.
“Most innovation in the oil and gas sector is in engineering, material science, and deeptech,” he explained, adding that these fields require strong research-driven universities and a grant system, which are not yet widespread in the region.
“Unlike consumer internet startups that require, as an example of the opposite side of the spectrum, much easier entry with existing cloud infrastructure and limited technical/research-driven processes required,” he added.
This, he believes, makes it harder for new startups to break into the oil and gas industry, compared to the more accessible fintech sector, where cloud infrastructure allows companies to scale with fewer resources.
The growing SME sector
According to Ibrahim AbdelRahim, managing partner at Moonbase Capital, Saudi Arabia’s SME sector has experienced impressive growth, largely driven by government support and Vision 2030 initiatives.
“As of the fourth quarter of 2023, the number of SMEs in the country reached 1.31 million, reflecting a 3 percent quarter-on-quarter increase,” AbdelRahim noted, referencing a report by the General Authority for Small and Medium Enterprises.
This marks a staggering 179 percent increase in SME numbers over the last eight years. While most of these SMEs are micro-sized, they are well-positioned for further growth.
AbdelRahim also highlighted the rising interest in search funds, a new asset class in the region that aligns well with Saudi Arabia’s economic landscape.
“Many investors are eager to diversify their portfolios with search funds due to their potential for steady returns that surpass those of real estate investments or forex trading,” he said.
Moonbase Capital, one of the pioneers in search funds in the region, has seen growing interest from high-net-worth individuals and family offices in Saudi Arabia.
From an entrepreneurial perspective, AbdelRahim believes search fund-backed ventures will thrive in the coming decade, thanks to the rapid growth and transformation of the SME sector.
Edtech in Saudi Arabia: revolutionizing education through innovation
Updated 28 December 2024
Reem Walid
RIYADH: Edtech, short for educational technology, refers to the use of technology—hardware, software, and digital resources—to enhance teaching, learning, and educational outcomes.
It encompasses a wide range of tools and techniques aimed at improving the educational experience, including online learning platforms, educational apps, digital textbooks, virtual reality simulations, gamified learning experiences, and more.
Edtech is utilized in schools, universities, corporate training settings, and lifelong learning environments to make education more engaging, accessible, and effective.
When it comes to Saudi Arabia specifically, investing in edtech aligns with the Kingdom’s Vision of establishing a knowledge-based economy.
The edtech market size in Saudi Arabia is projected to exhibit a growth rate of 13.3 percent during 2024-2032, according to global management consulting firm imarc.
This comes as the market is being propelled by a surge in demand for tailored education to meet individual student needs, a heightened emphasis on digital literacy and tech competencies, and a growing recognition of the value of adaptable and convenient learning options.
Saudi efforts
There is no doubt that the Saudi Ministry of Education isn’t just talking about the future—they’re building it, step by step, with initiatives designed to transform their classrooms into cutting-edge hubs of AI and digital mastery.
“Take their ‘Future Intelligence Program,’ for example, which aims to empower 30,000 students with skills in AI, machine learning, and smart technologies. Imagine a generation of Saudi youth who can program self-driving cars before they even graduate high school,” Ian Khan, a technology futurist and author who writes on the subject of AI, told Arab News.
“This is more than just an upgrade in skills—this is about shaping a workforce ready to dominate the tech economy. Layer on top of that the SAMAI initiative, where 1 million Saudis will gain expertise in AI and digital tools, and it becomes clear that Saudi Arabia isn’t just keeping up with global tech trends—they're aiming to lead them,” Khan added.
He went on to note that this bold vision is intricately aligned with Saudi Vision 2030, which strives to create a knowledge-driven economy.
“This AI-driven, personalized learning experience is where the future of education meets the individual’s unique strengths and needs, gearing up the country for its next leap forward,” Khan concluded in that regard.
Initiatives
There is no doubt that the Kingdom is actively integrating AI into its education system to create a future-ready workforce.
“Programs such as the Future Intelligence Programmer aim to train thousands of students in AI, equipping them with the skills to innovate in a rapidly digital world. AI is being used to personalize learning experiences, automate administrative tasks for educators, and enable more tailored educational pathways,” Samer Bohsali, Middle East head of government & public sector practice, Bain & Co., told Arab News.
“These efforts are part of a broader vision to transform the Kingdom’s education system, setting new standards for digital literacy and student engagement,” Bohsali said.
On behalf of PwC Middle East, Partner at Education and Skills Ayham Fayyoumi told Arab News that the Kingdom is adopting a cautious yet forward-thinking approach to AI in education, with initiatives focusing on several key areas.
Samer Bohsali, Middle East Head of Government & Public Sector Practice, Bain & Co. (Supplied)
“One notable example is the implementation of adaptive learning systems, which use AI to analyze individual student performance and tailor educational content accordingly. These systems can identify students’ strengths and weaknesses, offering personalized learning experiences that enhance educational outcomes,” Fayyoumi said.
“Additionally, AI-powered virtual assistants are being introduced to support both teachers and students in managing routine tasks, such as administrative work or grading, allowing educators to dedicate more time to core instructional activities. These AI tools are designed to streamline workflows, enhance productivity, and improve engagement in the classroom,” he added.
Global partnerships
Global EdTech partnerships are crucial for the Kingdom for several reasons including access to innovation, enhanced learning opportunities, cross-cultural exchange, among several others.
“When Saudi Arabia decided to revolutionize its educational landscape, they didn’t go it alone—they teamed up with global powerhouses like Google, Microsoft, and Coursera. This collaboration isn't just window dressing. It’s a deliberate strategy to equip students and educators with the latest tools in AI, cloud computing, and data science,” Khan said.
“Google Cloud’s Elevate Program, for example, has trained over 25,000 Saudi women in cloud technologies. This is more than just a skillset boost—this is building a tech-savvy workforce that can compete on a global stage,” he added.
The technology futurist continued to highlight that these partnerships give Saudi educators access to AI-powered platforms that personalize learning and streamline assessments, ultimately creating more engaging and efficient classrooms.
“The future of education isn’t just digital—it’s adaptable, global, and responsive. And Saudi Arabia, through these forward-thinking collaborations, is leading the charge toward a tech-dominant educational future,” Khan said.
Saudi Arabia’s collaboration with global tech leaders also empowers the nation to adopt advanced educational tools that inspire innovation in the classroom.
From Bain & Co.’s side, Bohsali explained that these partnerships provide access to AI-driven platforms that foster personalized learning and critical thinking.
“This digital transformation is not just about adopting technology but also about reshaping how education is delivered, making learning more engaging and aligned with the future needs of the global economy ,” he said.
Saudi Arabia’s educational technology firms are using AI and technological advancements to revolutionize conventional educational approaches and enhance student achievements. Taking cues from effective programs in the UK and elsewhere, Saudi Arabia is directing significant resources into AI-infused tools across various sectors, particularly education.
Consequently, this initiative is fostering expansion in the education sector and sparking creativity within private enterprises, which is positively impacting more than 6 million students in the nation.
In that regard, PwC partner Fayyoumi said: “Several EdTech companies are at the forefront of this revolution, incorporating advanced AI technologies into their products and services to enhance learning experiences.”
“These companies are providing products utilizing AI to offer personalized learning pathways, adaptive assessments, and real-time feedback to better meet the unique needs of individual students. Such tools not only improve engagement but also boost academic performance by catering to diverse learning styles,” he added.
Saudi Vision 2030
“Saudi Vision 2030 isn’t just about a shift in economic strategy—it’s a transformation in mindset. At the heart of this vision is the move from a resource-based economy to one driven by knowledge, innovation, and technology,” Khan said.
“By embedding AI and digital learning in classrooms, programs like SAMAI and the Future Intelligence Program are crafting a new generation of thinkers, doers, and creators. The ripple effects will be profound. Think about it—students will be more engaged because their learning is tailored to their strengths,” he added.
The technology futurist emphasized that the education system will be more efficient, and graduates will emerge prepared for high-demand sectors like AI, cybersecurity, and digital industries.
He underlined that this is the essence of future readiness—where a nation’s educational foundation aligns perfectly with the demands of tomorrow’s economy.
On Bain & Co.’s behalf, Bohsali said: “By embedding AI and advanced technologies into the curriculum, the Kingdom is fostering a generation of learners who are not only technologically adept but also equipped to lead in innovation.”
Ayham Fayyoumi, Partner, Education and Skills, PwC Middle East.
“The expected outcomes are profound—enhanced digital literacy, improved educational outcomes, and the positioning of Saudi Arabia as a global leader in the knowledge economy,” Bohsali added.
Education is a key pillar, for both youth and above in achieving the goals of Vision 2030. This comes as the median age of Saudis is 22 years, and 63 percent of the Saudi population is below the age of 30.
Furthermore, PwC’s 2024 Hopes & Fears survey shows that nearly three-quarters of people surveyed in Saudi foresee the growing importance of digital skills in their roles over the coming five years.
“Incorporating digital tools within the education ecosystem can help boost the overall student learning experience and prepare them for their future work environments,” Fayyoumi said.
The PwC partner concluded by emphasizing that by enhancing the education sector using digital technologies such as AI, Saudi Arabia stands to build a globally competitive society, and to become the hub for the next generation of digitally equipped leaders in the Kingdom.
“Thus, the digital transformation of the education sector is another important part of Vision 2030’s success, to ensure young people in the Kingdom have the right skills for the future world of work,” he said.
