CEO of Middle East ride hailing firm Careem looks forward to full recovery by end of year
Appearing on Frankly Speaking, Mudassir Sheikha highlighted the Saudi market’s importance and strategic value to Careem
He expressed pride in the fact that Saudi citizens now comprise 100 percent of the company’s workforce in the Kingdom
Updated 08 February 2021
Frank Kane
DUBAI: Careem, the ride-hailing company that has revolutionized mobility and delivery in the Middle East, is looking forward to a full recovery to pre-pandemic business levels by the end of this year, its founder and chief executive Mudassir Sheikha, told Arab News.
Its taxi, delivery and other mobility services took a big hit at the low point of the pandemic recession last summer, when it was forced to lay off one-third of its workforce.
But Sheika said: “From the depths of that crisis we’ve actually recovered quite strongly. If you look at the mobility of people business, which moves people from point A to point B, it’s grown 10 times from that point.
“The ‘mobility of things’ business — the delivery business — didn’t get impacted as much to begin with, and that that has grown four times.
“Even our nascent Careem Pay business — the ‘mobility of money’ as we call it — has doubled in size. So, the businesses have recovered strongly from that low point.”
Sheikha said his workforce in the Kingdom is now 100 percent comprised of Saudi nationals. (Handout)
Sheikha was appearing on the latest episode of Frankly Speaking, a recorded show where prominent Middle East policymakers and business leaders are questioned on their views about the most important issues of the day.
He also revealed that the Careem workforce in the Kingdom is now 100 percent comprised of Saudi nationals, talked about the new commission structure he hopes will help rescue the restaurant industry, and described in detail the reasons for the 2019 sale of Careem to Uber, which made him one of the wealthiest people in the region.
He also explained how, from start-up origins as a ride-hailing service in 2012, Careem now aims to become a “Super App” that can handle the full panoply of consumers’ everyday needs, from calling a cab to transferring cash.
On the 2019 deal which saw Careem taken over by the global giant Uber, he said: “We’re much stronger as a result of being part of the Uber family, and we can actually do more with that support. Just keep in mind that we have an investor, a parent company. Now that is actually quite resourceful — not just from a funding standpoint, but more importantly from an understanding and knowledge of many of the things that we're trying to do in this region.”
The $3.1 billion sale to Uber made big profits for a range of Saudi investors who had backed Sheikha in earlier finding rounds, but some analysts said that Careem would have been more valuable if it had floated shares on the Tadawul stock exchange in Riyadh as the region’s first “unicorn” — a startup company that achieves a valuation of over $1 billion.
“The decision on whether to continue and do an initial public offering (IPO) versus become a part of the Uber family was considered carefully by the Careem board at that time, and it was determined that the Uber acquisition was the right way to go,” Sheikha said.
“The way the deal was constructed, we have the right to remain independent. We get to keep the Careem brand, we get to keep the Careem culture and can run this business in a way that makes sense for the opportunities in this region.”
The essential difference between Careem and Uber — now under CEO Dara Khosrowshahi — lies in Sheikha’s ambitions to widen his horizons beyond “people mobility” to provide a range of consumer services via the Careem “Super App.”
“Careem is a Super App whereas Uber's focus is more on mobility and trying to become the house of all mobility options,” he said.
“When you open the app in Dubai, for example, not only can you order a car or a taxi, but you can also get micro mobility — you can get a bike — you can order food, you can order groceries, you can order pharmacy products, you can even pay bills and and pay your friends and family through the app.”
He believes that Saudi Arabia, despite the economic downturn of the pandemic, is a perfect place for the “Super App” strategy. “I think our opportunities are plenty, and frankly, COVID-19, while it has been a tragedy on many dimensions, for digital adoption it's actually been a big booster to what has happened in Saudi Arabia,” Sheikha said.
“From our perspective to become a Super App in Saudi Arabia means that we can actually start helping people, not just with mobility but pretty much almost everything they need on a daily and weekly basis.”
Careem is undecided whether to join the rush of companies chasing Riyadh as the base their main regional headquarters, but Sheikha said: “It is a very important and strategic market for us and we have a large part of our workforce based in Saudi (Arabia), so whether we are headquartered here (in UAE) or there it is fair to say that we all spend a fair amount of our time in Saudi and make sure that it gets the attention it deserves as one of our largest and most strategic markets.”
When Careem first entered the Saudi market in 2013, it faced a problem attracting citizens to become “captains” — drivers of Carem taxis — but Sheikha said the pressure of economics, as well as essential training, has now meant the driver force in 100 per cent comprised of Saudi citizens.
“We did a lot of work to make sure that this was seen as a respectable profession, calling them captains, making sure their earnings were given in a way that was acceptable. We started educating customers on how to behave with these captains,” he said.
Careem also made a big move to attract female “capitanas” when Saudi laws were changed to allow women to drive, but this has been a more challenging goal. “It has something that we would love to do a lot more on. We have a small percentage of our fleet who are female captains in Saudi (Arabia), and once in a while you will get a ride with them. But it’s been hard to scale that program,” Sheikha said.
“What we’re seeing a little bit is that there are women who want to drive and be capitanas, but there’s still a need for acceptance, and perception and the way that this is seen. That needs to evolve before it starts becoming more widespread.”
Sheikha’s big recent focus has been on the delivery market in the UAE, where the surge in home deliveries during the pandemic restrictions has put some restaurants at financial risk. “The food-delivery business in this region is not in a healthy place,” he said.
Careem weighed into the controversial subject last week with a plan to charge zero commission on deliveries by its drivers, charging instead a flat-rate subscription for access to the Careem app. The move drew an instant response from the competition, notably Noon, the e-commerce company run by UAE entrepreneur Mohamed Alabbar and backed by Saudi Arabia’s giant Public Investment Fund.
But, far from being a price war in the food-delivery business, Sheikha sees the move as one that will encourage long-term stability for the restaurants and delivery companies. “Let's not think short term, let's think mid to long term about this huge opportunity ahead of us. If we try to maximize the economics today, we will sacrifice the long-term opportunity,” he said.
Careem has no plans to move outside its birthplace, the Middle East, because Sheikha believes there are huge opportunities to expand and deepen its “Super App” operations to more of the 15 countries and 100 cities it serves in the region.
Likewise, plans to make its car fleet “greener” — by introducing more electric vehicles, for example — will be a secondary priority to the challenge of making transport and other services more affordable, at least while the economic effects of the pandemic are still with us.
Will Sheikha, having taken Careem so far in the relatively short time since it began, ever decide to hand the wheel over to Khosrowshahi of Uber?
“We are very early in the Careem journey. Inshallah, when we look at this business eight or 16 years from now, we see the region being radically better as a result of Careem being around. So, there's a lot to be done and we are just getting started,” he said.
Oil Update — crude slips as investors eye Trump move on Russian export curbs
New US sanctions hit near-term supply, limits ship availability
Trump may relax Russia energy curbs for accord on Ukraine war, analysts say
Updated 16 sec ago
Reuters
SINGAPORE: Oil prices fell on Monday as expectations of US President-elect Donald Trump relaxing curbs on Russia’s energy sector in exchange for a deal to end the Ukraine war offset concern of supply disruption from harsher sanctions.
Brent crude futures dropped 16 cents, or 0.2 percent, to $80.63 a barrel by 7:53 a.m. Saudi time after closing down 0.62 percent in the previous session.
The more active US West Texas Intermediate crude April contract fell 6 cents to $77.33 a barrel. The front-month contract, which expires on Tuesday, was at $78.03 a barrel, up 15 cents, or 0.19 percent, after settling down 1.02 percent on Friday.
Trump, who will be inaugurated later on Monday, is widely expected to make a flurry of policy announcements in the first hours of his second term, including an end to a moratorium on US liquefied natural gas export licenses — part of a wider strategy to strengthen the economy.
“There is a fair amount of uncertainty across markets coming into this week given the inauguration of President Trump and the raft of executive orders he reportedly is planning to sign,” ING analysts said in a note.
“This combined with it being a US holiday today, means that some market participants may have decided to take some risk off the table.”
Both contracts gained more than 1 percent last week in their fourth successive weekly ascent after the Biden administration sanctioned more than 100 tankers and two Russian oil producers. That led to a scramble by top buyers China and India for prompt oil cargo and a rush for ship supply as dealers of Russian and Iranian oil sought unsanctioned tankers to ferry their load.
While the new sanctions could impact the supply of nearly 1 million barrels per day of oil from Russia, recent price gains could be short lived depending on Trump action, ANZ analysts said in a client note.
Trump has promised to help end the Russia-Ukraine war quickly, which could involve relaxing some curbs to enable an accord, they said.
Analyst Tim Evans said the new sanctions are seen curtailing supply, at least in the near term.
“Higher tanker rates on unencumbered vessels and a widening backwardation in crude oil calendar spreads have been among the notable ripple effects, reinforcing the concern over supplies,” he said in his newsletter Evans on Energy.
Backwardation refers to prompt prices being higher than those in future months, indicating tight supply.
The prompt Brent monthly spread widened in backwardation by 5 cents to $1.27 a barrel on Monday. The WTI spread was at 63 cents a barrel, up 14 cents.
Easing tension in the Middle East also kept a lid on oil prices.
Hamas and Israel exchanged hostages and prisoners on Sunday that marked the first day of a ceasefire after 15 months of war.
Separately, investors are watching out for the impact from a cold snap in Texas and New Mexico which may affect US oil production, analysts at ANZ and ING said.
Cloud technology set to transform Saudi Arabia’s mining industry, says Ma’aden executive
Updated 46 min 42 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s mining industry is set for a major transformation, driven by the rapid adoption of advanced technologies such as cloud computing, according to a senior executive.
In an interview with Arab News on the sidelines of the Oracle CloudWorld Tour Riyadh event, Abdullah Al-Osaimi, senior vice president of procurement and business support at Ma’aden, emphasized the critical role of cloud technology in the future of mining operations.
“I think the nature of mining is one of the industries that is going to be heavily dependent on Cloud,” Al-Osaimi said.
He added: “You are exploring unknown territories that do not even have any population. It’s in the remote areas. This is where most of the minerals and discoveries we have.”
Abdullah Al-Osaimi, senior vice president of procurement and business support at Ma’aden. Supplied
Al-Osaimi highlighted the unique challenges faced by the sector, particularly in exploration activities conducted in less inhabited areas.
“If you don’t incorporate a cloud strategy, operating in such environments will be extremely difficult,” he said.
“Cloud solutions, along with mobility and edge computing, are crucial for achieving faster and more accurate exploration and production results.”
With Saudi Arabia’s Vision 2030 strongly emphasizing mining as a key economic driver, Ma’aden is aggressively adopting new technologies to support its ambitious growth plans.
“We are planning to grow tenfold by 2040. Very few companies in the world have such an aggressive growth strategy,” said Al-Osaimi.
He continued: “To achieve this, we are focusing on scalability, cost-effectiveness, and operational efficiency through advanced cloud-based solutions.”
Al-Osaimi also emphasized Saudi Arabia’s commitment to integrating advanced technologies into its development strategy, highlighting the country’s proactive approach to adopting and experimenting with innovations, even relatively new ones globally.
“We are keeping this in the heart of our strategy. We are pushing so hard in every single technology. We are even testing technologies that are very new in the world. We are bringing it here in Saudi Arabia,” Al-Osaimi said.
He continued: “One of our main objectives is to localize these technologies, not only test them but also bring them here in Saudi Arabia, so they will grow from Saudi Arabia, not just we use them and that’s it. We are bringing these technologies, we are investing in them, and we are growing them with us.”
Al-Osaimi pointed out that cloud technology offers mining companies the flexibility to analyze vast amounts of exploration data in real time, reducing the traditional timeline of discovering and processing mineral resources.
“In the mining sector, it usually takes around 15 years to go from exploration to full production. Our goal is to reduce that to at least half by adopting new technologies,” he said.
Al-Osaimi added: “AI is one of the key technologies we are adopting. It is not just a buzzword; it is an essential tool that helps us enhance productivity and accuracy.”
He further explained that technology adoption in mining is not just about implementing systems but also about ensuring data quality and developing the right skillsets among employees.
Talking to Arab News, the managing director and country leader for Oracle Saudi Arabia, Reham Al-Musa, underlined the company’s commitment to the Kingdom’s digital economy, stating: “Our CEO Safra Catz announced an investment of $1.5 billion to expand cloud capacity in Saudi Arabia during her visit two years ago.”
Reham Al-Musa, managing director and country leader for Oracle Saudi Arabia. Supplied
Al-Musa continued: “Oracle was the first cloud provider to open a data center in the Kingdom in 2021, starting in Jeddah, followed by a second region in NEOM and a third in Riyadh, which went live a few months ago.”
She also underlined that Saudi Arabia aims to become a hub for artificial intelligence, and Oracle is supporting this goal by providing technology that integrates generative AI and other capabilities.
“Cloud is the future, and it will come like for everyone. However, there is a regulated industry that they cannot go to the public cloud,” Al-Musa said.
She continued: “We have the capability to build the sovereign cloud, and this is what we did and announced with stc, stc alloy, so this is providing an extra layer of security to give the privilege for the regulated industry to utilize the benefit of the cloud and the latest technology on the cloud.”
In April 2024, Oracle and Saudi Telecom Co. launched sovereign cloud services in the Kingdom, using Oracle Alloy to help accelerate Saudi Arabia’s digital transformation with over 100 Oracle Cloud Infrastructure services for public sector and enterprise customers.
During the event, Oracle celebrated 30 years of supporting the nation’s digital transformation.
For the first time, the annual CloudWorld Tour, typically held in Las Vegas, is being hosted in Riyadh.
“Bringing the CloudWorld Tour to Riyadh for the first time in our 30th year in the Kingdom underscores our commitment to empowering Saudi organizations with cutting-edge cloud and AI technologies,” Al-Musa said during the opening remarks.
The event highlights how Oracle will help customers maximize the benefits of its cloud solutions, and the new data centers the company has opened in Saudi Arabia.
Oracle also announced that the Al-Madinah Development Authority achieved a significant milestone by implementing the Oracle Fusion cloud applications suite.
MDA implemented Oracle Fusion Cloud Enterprise Resource Planning, Oracle Fusion Cloud Supply Chain and Manufacturing, and Oracle Fusion Cloud Human Capital Management.
A custom application for managing supplier payments has also been developed. This achievement is part of the authority’s efforts to enhance operational efficiency, boost productivity, and adopt the latest digital technologies.
World Economic Forum begins in Davos amid hope and uncertainty
Annual meeting coincides with high geopolitical tensions, rapid technological advancements and escalating impacts of climate change
Discussions at Swiss resort town will include center on the future of work, technology, and climate action among other pressing topics
Updated 20 January 2025
Arab News
DUBAI: As the world’s elite arrive in the snow-capped Swiss mountains for the World Economic Forum (WEF) Annual Meeting 2025, the event promises to be a pivotal moment as global leaders address the world’s most pressing challenges.
With more than 350 government leaders, including 60 heads of state, attending, alongside business executives, civil society leaders, global experts, and other influential individuals from more than 130 countries, the forum’s organizers say the event — which runs from Jan. 20 to Jan. 24 — is intended to “drive dialogue and create solutions to the world’s shared problems.”
A picture taken on January 19, 2025 shows the Alpine resort of Davos ahead of the World Economic Forum annual meetig. (AFP)
The theme of the 2025 meeting, “Collaboration for the Intelligent Age,” will focus on five pillars crucial for a sustainable and inclusive future: Reimagining Growth, Industries in the Intelligent Age, Investing in People, Safeguarding the Planet, and Rebuilding Trust.
Klaus Schwab, the WEF’s founder and chairman, emphasized the role of Davos as a unique venue in bringing together thousands of decision makers to address global challenges.
“Despite divergent positions and great uncertainties, the Annual Meeting 2025 will foster a spirit of cooperation and constructive optimism with the objective of shaping the forthcoming Intelligent Age in a more sustainable and inclusive way” Schwab said in a press release
WEF founder and chairman Klaus Schwab speaks with the forum's managing directors Mirek Dusek and Neo Gim Huay, president and CEO Borge Brende and head of media Yann Zopf ahead of the annual meeting in Davos. (AFP)
In that same release, Børge Brende, president and CEO of the WEF, echoed this sentiment, noting that unprecedented collaboration is required to deal with the world’s most pressing issues.
“The only way to address urgent challenges and unlock new opportunities is through innovative, cooperative approaches,” Brende stated.
Among the heads of state set to participate are U.S. President-elect Donald Trump (via video link), European Commission President Ursula von der Leyen, German Chancellor Olaf Scholz, South African President Cyril Ramaphosa, Argentine President Javier Milei, and Ukrainian President Volodymyr Zelenskyy.
Opinion
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Leaders from international organizations including the United Nations, the World Health Organization, and the International Monetary Fund will also be present, alongside 1,600 business leaders, including more than 900 CEOs and more than 120 “tech pioneers.”
Civil society will also be well represented, with more than 170 leaders from labor unions, non-governmental organizations, and academia, and more than 160 members of the WEF’s Global Shapers, Young Global Leaders and Social Innovators.
Protestors are seen on a two-day hike from Kueblis to Davos as part of a demonstration of the collective 'Strike WEF' in Switzerland on Jan. 18, 2025 ahead of the annual meeting of the World Economic Forum in Davos. (Keystone via AP)
The event will also be attended by 120 “cultural leaders,” and will feature an Arts and Culture program showcasing music, film, photography, interactive AI-driven art and handcrafted creations.
Mirek Dusek, WEF managing director, said in a statement: “By convening leaders from around the world and different walks of life, the Annual Meeting provides a platform to share views and knowledge at a time of profound change for people and communities.
“A core goal of our proceedings is to enable broad-based agency and solutions in the context of the new economy that seems to be emerging.”
Discussions at Davos will include debates on the future of work, technology, and climate action, and will also examine critical initiatives in areas including cybersecurity, artificial intelligence, and renewable energy. (AFP)
Discussions at Davos will include debates on the future of work, technology, and climate action. Reports such as the Global Cooperation Barometer 2025 and the Future of Jobs Report will be discussed during sessions, as will the ways in which new technologies will reshape industries and potentially create millions of jobs, while also terminating many others.
The meeting will also examine critical initiatives in areas including cybersecurity, artificial intelligence, and renewable energy, with the aim of creating “responsible, inclusive strategies for the future.”
Gim Huay Neo, WEF managing director said in a press release, “We will explore how data and technologies, as well as innovative partnerships, can be harnessed to create value and empower leadership for people, planet and prosperity.”
‘We believe stability and peace are a prerequisite to prosperity,’ says Saudi minister of economy ahead of WEF
Global economy needs a more stable Middle East, Faisal Alibrahim said ahead of World Economic Forum annual meeting in Davos
The Saudi minister of economy and planning discussed FDI inflow, giga-projects and need for “common ground”
Updated 20 January 2025
Reina Takla
RIYADH: A stable Middle East is crucial for global prosperity, according to the Saudi minister of economy and planning, who also underlined the Kingdom’s commitment to being a reliable partner for economic growth.
Speaking to Arab News ahead of the World Economic Forum annual meeting in Davos, Switzerland, Faisal Alibrahim said: “We believe in stability and peace as a prerequisite for prosperity, and we believe in the global economies’ need for a more stable Middle East.”
He emphasized that the Kingdom’s own transformative journey plays a significant role in fostering regional stability and prosperity.
“We see our role internally, in unlocking our potential as an economy and society. (We also see) its clear and direct impact on the region’s stability and prosperity,” he said.
The WEF annual meeting will focus on geopolitical shocks, living standards and energy transition among other challenges. (WEF photo)
Alibrahim conveyed a message of confidence and reassurance. “The message that I would share on top of that is that the Kingdom is a long-term, reliable partner, and will always work toward shaping a prosperous future,” he said.
“If you keep that in mind, and then you keep in mind the opportunities that are being created in the Kingdom with this transformation, you’ll see that there is no better place to invest for results, both commercially and financially but also from an impact point of view, than the Kingdom today.”
He encouraged investors to recognize the significant opportunities that the Kingdom’s transformative journey presents.
Attracting foreign investment
Alibrahim emphasized the Kingdom’s commitment to attracting $100 billion in foreign direct investment (FDI) by 2030, but stressed that the focus is on attracting high-quality, long-term, value-creating investments that contribute significantly to the Kingdom’s economic growth and development.
“Our target is still 5.7 percent of GDP in 2030, which amounts roughly to $100 billion of inflow in 2030. That’s why the National Investment Strategy was launched, and since it was launched, we’ve been exceeding our yearly targets, consistently,” he said.
While acknowledging the challenges, Alibrahim expressed confidence in achieving this target, saying: “This is a long-term journey and we need to continue working with our partners, continue working intra-governmentally to figure out more ways where we can make sure that the momentum we have in attracting foreign capital will continue.”
Faisal Alibrahim discussed attracting investment into the Kingdom and how the economy can be shielded from shocks with Arab News ahead of the World Economic Forum annual meeting in Davos. (AN Photo)
He highlighted the importance of continuous policy refinement and a proactive approach to identifying and addressing potential roadblocks.
Acknowledging the recent trends in FDI inflows, Alibrahim noted that while 2023 saw figures exceeding initial targets, the first three quarters of 2024 showed a slight decline to around SR17 billion. “We’ll continue to monitor how it progresses, and see what the latest numbers are,” he said.
However, he emphasized that these figures should be viewed within the context of a long-term trajectory. He pointed out that many of the transformative projects undertaken as part of Vision 2030 have long lead times, and their impact on FDI inflows will become increasingly evident in the coming years.
Reiterating the Kingdom’s commitment to creating a conducive environment for foreign investment, he said: “The Kingdom’s approach to unlocking its potential, involves really rewriting the economic playbook.”
He added: “This is not just about investments or the government spending money. This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government. Tomorrow, ultimately, we want the private sector to lead it.”
This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”
As early as 2018, the Kingdom has actively worked on enhancing its competitiveness by streamlining regulations and fostering a more conducive environment to improve the ease of doing business. (AN illustration)
The Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.
Emphasizing the importance of private-sector engagement, Alibrahim said: “Many laws are being revised. Many laws are being taken to public consultation, and at the heart of all of this is engagement with the private sector and with investors to understand that these laws and the reforms and the regulations, as they evolve, are exactly, what is needed.”
Shielding economy from shocks
Alibrahim acknowledged the inherent challenges posed by the interconnected nature of the global economy. “It’s important to keep in mind that we are shifting the structure of the Saudi economy,” he said. “We’re shifting from an economic structure that relied heavily on oil inflows for its economic activity, to one where we will continue to rely on inflows, but not in the same manner.”
This fundamental shift, according to him, is crucial for mitigating the impact of external shocks and building a more resilient economy.
Highlighting the encouraging growth of the non-oil sector as evidence of this ongoing transformation, he said: “Non-oil activities today represent 52 percent of our total real GDP. Non-oil growth for the last three years on average is 6 percent.
“Our ambition is to take it even further. We are closing 2024 with non-oil growth at 3.9 percent. (In) 2025, we project it to be 4.8 percent. (In) 2026, the Ministry of Economy and Planning projects it to be 6.2 percent.”
He said these figures demonstrated the Kingdom’s progress in restructuring its economy in the right direction.
According to Alibrahim, however, navigating the complexities of the global economy requires a proactive and adaptable approach. “As we shift, whatever plays into our risk assessment is shifting as well,” he said. “In the past, anything that affected the oil market will directly affect our ability to operate as an economy. Today that is shifting.”
He emphasized the importance of continuous monitoring and proactive risk assessment to anticipate and mitigate potential challenges. “The name of the game, in our view, is agile policymaking, more engagement and more institutional capabilities, engaging with all constituents, being agile in decision-making and continuously investing in your institutional capabilities so that you can have better quality policy responses,” he said.
Of ambition and prudence
Acknowledging the ambitious nature of the Kingdom’s giga-projects, Alibrahim emphasized the need for a balanced approach. “What’s critical is to keep in mind that to achieve vision 2030, we started the planning with confidence like you said, but also delivering with optimism, and we believe optimism is a choice,” he said.
“It’s a decision. It’s a design input. It’s not just a gut or emotional reaction or a feeling, but more importantly, managing with prudence.”
He cited the impressive growth of the tourism sector, exceeding initial targets, as a testament to the Kingdom’s ability to effectively plan and execute ambitious initiatives.
“We had the target of 100 million visitors in 2030. We reached 100 million seven years early. Today, that number has been increased to 150 million.”
The Kingdom surpassed its target of 100 million visitors in 2023.
This remarkable achievement demonstrates the Kingdom’s capacity to successfully plan, implement and even surpass ambitious goals, according to Alibrahim.
Still, he reiterated the need for evaluation and adjustments. “On top of that, we wanted to make sure as we got more knowledgeable and are aware of how to manage the economy and economic management, we don’t want to create value leakage like what happened before in the 1980s,” he said.
“We also don’t want to overheat the economy and create an inflation environment that might hurt the private sector, the existing private sector or other players outside of these projects, so a decision to revisit how fast we go without really affecting the pace and scale of overall Vision 2030 was looked at.”
These adjustments reflect a commitment to responsible and sustainable development, according to Alibrahim.
He recognized that while the tourism sector has exceeded expectations, other factors, such as the emergence of new projects, necessitate a careful review of timelines and resource allocation.
“In parallel, new inputs came in. We won hosting the Asian Cup for 2027, Asian Winter games in Trojena 2029, World Expo 2030, World Cup 2034. We’re hosting the world twice in four years very soon,” he said.
World Expo 2030 takes place from Oct. 1, 2030, to March 31, 2031 in Riyadh. (X: @bieparis)
These new opportunities, while exciting, require careful consideration and integration into the overall development plan, according to Alibrahim.
“We just concluded for the first time a long-term fiscal exercise,” he said. “We decided to shift things. There is agility in decision making, there is prudence in management, and we’re not ashamed to talk about that.”
To ensure the successful and sustainable execution of these ambitious projects, Alibrahim stressed the importance of quality and sustainability. “We need to make sure that the optimal value creation for the local economy (and) minimizing the impact of creating an inflationary environment on the economy as well as in the private sector and then using innovation and using these opportunities to invite quality investors and quality partners that can come in and set up shop,” he said.
He also underscored the need for clarity and transparency in these large-scale projects. “For the first time in a long time, we do have clarity on the types of projects that we will have and what kind of partners we need, which is clarity that the private sector always seeks,” he said.
This clarity, in his opinion, creates an opportunity to attract international partners with the expertise and resources to deliver high-quality infrastructure projects while maximizing knowledge transfer and minimizing risks. “Infrastructure in general is a sector that we see will be witnessing a lot of investment in the Kingdom,” he said.
Saudi Arabia heads to Davos
Saudi Arabia’s delegation to the WEF annual meeting in Davos this year will feature for the first time a “Saudi House.” This centralized hub will serve as a meeting point for government officials, business leaders and other stakeholders participating in the forum.
Saudi House was designed to bring together all the government entities that are participating in Davos in one convenient location, Alibrahim said.
Using this opportunity to create a positive impact on the global economy, he will champion a key call in Davos for global leadership to move beyond tepid economic growth and embrace a more ambitious, “intrepid leadership-led” approach.
(Saudi MEP illustration image)
Rewriting the economic playbook: A new era of growth
Alibrahim spoke of the importance of realizing that the Kingdom’s approach to unlocking its potential involves “rewriting the economic playbook.”
This ambitious undertaking extends beyond attracting investment; it’s about cultivating a dynamic and vibrant ecosystem that attracts both capital and talent, according to him.
“This is not just about investments or the government spending money,” he said, elaborating the point. “This is about creating an environment that’s vibrant, that attracts capital, attracts minds to the opportunities that are being created in the Kingdom led today by the government.”
This vision necessitates a continuous process of reform and adaptation, Alibrahim said, adding: “This means that reform is a daily exercise.”
He said the Kingdom is actively working to enhance its competitiveness by streamlining regulations, improving the ease of doing business, and fostering a more conducive environment for both domestic and international enterprises.
A global growth platform
Alibrahim asserted that Saudi Arabia has emerged as a leading global growth platform. “What’s critical for us is the strengths that the Kingdom has in the past,” he said.
He highlighted a key differentiator, saying: “Every country has its strengths, and we need to build on these strengths to transform.”
He explained that while many countries rely primarily on either natural resources or human capital, the Kingdom possesses a unique advantage by leveraging both. This unique combination of abundant natural resources and a dynamic human capital base sets the Kingdom apart from many other emerging markets.
Furthermore, he emphasized the Kingdom’s strategic advantages. “We have a large land area that can be leveraged for (diverse) projects, including AI. We have access to natural resources, specifically cleanest hydrocarbon energy globally, but also renewable energy of the cheapest wind and solar globally delivered by the private sector.
General view of the 300-MW Sakaka Solar Energy Project in Al-Jouf province. Saudi Arabia has committed to have 50 percent of its power generated from renewable sources by 2030. (Photo courtesy of Acwa Power)
“We also have green hydrogen investments working on blue hydrogen, working on many other sources,” said. These abundant and diverse energy resources provide a strong foundation for sustainable economic growth and attract significant investment in clean energy technologies.
Alibrahim also highlighted the Kingdom’s human capital as a key driver of growth. “We also have access to a talent pool that is today Saudi based,” he said. “Sixty-three percent of the population is below the age of 30, a young and dynamic population full of optimism and full of energy.”
He drew attention to the Kingdom’s strategic location and its growing global influence. “Keep in mind the Kingdom’s location connecting three continents and the Kingdom’s leadership role in the global issues, also connecting the world and helping the world to shape a more prosperous future,” he said.
Strategic partnerships
The growing significance of strategic partnerships with leading global financial institutions is an important aspect to consider, according to Alibraim. “The Kingdom today is a global investment powerhouse that’s leveraging on its diplomatic determination, economic potential, resources with natural and human,” he said.
While the Kingdom has long-standing relationships with many global financial institutions, the nature of these partnerships is evolving.
“What’s different today is that we’re seeing a lot of these firms when we talk about investment firms, we’re looking at the Kingdom as not just a source of capital, but as a capital of opportunities,” he said.
During the interview with Arab News, the minister underlined the Kingdom’s commitment to being a reliable partner for economic growth. (AN Photo)
He maintained that leading global financial institutions are increasingly recognizing the Kingdom not just as a destination for investment, but as a partner in growth and development. “They want to invest in the Kingdom,” he said.
He also mentioned the growing confidence of international investors in the Kingdom’s economic transformation. “Almost 571, if I’m not mistaken, multinational companies, investment and otherwise, have signed to re-establish their or establish the region headquarters in the Kingdom well beyond our targets for 2030, six seven years ahead (of schedule).”
This significant influx of multinational companies serves as a powerful testament to the growing attractiveness of the Kingdom as a business and investment hub, he added.
Alibrahim reiterated the long-term nature of these partnerships and the Kingdom’s commitment to fostering mutually beneficial collaborations. “But more importantly, the Kingdom has always been and will continue to be a long-term, reliable partner, so what’s happening in the Kingdom is going to create a lot of opportunities for anyone who wants to come and truly shape what the future looks like,” he said.
When asked about successful leadership, Alibrahim outlined three key imperatives: a long-term vision, unwavering optimism, and a commitment to building strong institutions.
He spoke of the importance of a long-term perspective, saying: “In the Kingdom, when we started with Vision 2030, it came from a long-term view, and I’m going to always refer to the vision as an evidence and example because we’re living it, so the first thing is having a long-term horizon and continuously thinking with a long-term view,” he said.
According to him, this long-term vision serves as a guiding principle, ensuring that all decisions and initiatives are aligned with the Kingdom’s overarching goals and aspirations.
Furthermore, Alibrahim pointed to the importance of clarity in the planning and effective communication in driving progress. “This is a day-in, day-out exercise that we need to continue living in order to be in a better position to achieve our ambitions,” he said.
“Today in the Kingdom, Vision 2030 has been going on for eight years, and it still feels like the same energy momentum as when it was launched. In fact, maybe some people say it’s even more energy and more momentum.”
Finally, Alibrahim highlighted the crucial role of strong institutions in supporting sustainable development and long-term prosperity. “To continue investing in building institutional capabilities. This is a long-term investment. This is something that will serve the generations to come. Stronger institutions mean better economic performance,” he said.
Saudi Arabia is on track to achieve the United Nations' Sustainable Development Goals. (Photo courtesy of Monshaat.gov)
A common ground
The importance of finding and fostering common ground in an increasingly interconnected yet fragmented world was pointed out by Alibrahim.
“We were in Berlin a few months ago. The theme was Common Ground. We talked about it in Davos two or three years ago. In the blog post, we pushed the common ground is what keeps people at the table, and we need to make sure we maintain that common ground and fight for protecting that common ground, but also work constructively to grow it,” he said.
According to Alibrahim, the global landscape is evolving with increasing trade fragmentation and a shift away from hyper-globalization. “The world is shifting,” he said. “There is more trade fragmentation. Hyper globalization has ended. Today we have a new kind of globalization.”
This new reality necessitates a renewed focus on dialogue and collaboration, he said, adding: “All this means that dialogue is going to be essential, and at the heart of the dialogue is keeping our mind on what we have in common and how we can grow that as we move forward.”
Saudi Arabia to showcase $100bn aviation investment opportunities at WEF
Updated 19 January 2025
Reem Walid
RIYADH: Saudi Arabia’s General Authority of Civil Aviation is set to present over $100 billion in investment opportunities at the World Economic Forum in Davos, taking place from Jan. 20 to 24.
The Saudi House Pavilion will serve as the venue for showcasing critical aviation projects, encompassing airports, airlines, cargo logistics, and ground services, according to GACA statement.
These initiatives are central to the Kingdom’s ambitious strategy to establish itself as a global aviation hub.
According to the statement, at the heart of the presentation will be the allocation of $50 billion for the expansion and modernization of major airports. An additional $40 billion will be dedicated to new aircraft acquisitions, while $10 billion will be directed toward creating advanced logistics hubs at key airports in Riyadh, Jeddah, and Dammam.
Mohammed Al-Khurais, GACA’s executive vice president of strategy and business intelligence, underscored the scope of the investments.
“Saudi Arabia is offering aviation opportunities on an unprecedented scale. Through our ambitious Saudi Aviation Strategy, we aim to triple passenger traffic, expand to 250 destinations, and handle 330 million passengers and 4.5 million tonnes of cargo annually.”
The pavilion, organized by the Ministry of Economy and Planning, will host high-level discussions and key announcements. Among the speakers will be Abdullah Al-Dubaikhi, Saudi Arabia’s assistant minister of investment, as well as executives from major aviation players, including Archer Aviation and Jeddah Airport.
The GACA statement said panel discussions will focus on high-profile projects such as the King Salman International Airport in Riyadh, a sprawling mega-hub featuring six runways. There will also be dialogue surrounding public-private partnerships aimed at upgrading regional airports.
Beyond traditional infrastructure, the showcase will explore emerging sectors within aviation, such as cargo and logistics, Advanced Air Mobility, and business aviation.
This forward-thinking approach highlights Saudi Arabia’s commitment to not only modernizing its air transport network but also shaping the future of global aviation.
The Saudi pavilion will serve as a dynamic platform to present the Kingdom’s economic vision, fostering collaboration between global leaders, innovators, and investors, the statement said.
Aviation, positioned as a cornerstone of Saudi Arabia’s Vision 2030, is expected to play a pivotal role in transforming the Kingdom into a leading force in the global aviation industry.
