JEDDAH: Senior company executives in Saudi Arabia are embracing the digital revolution, with 98 percent planning to raise their investments in cloud computing this year, according to a new survey.
Cloud computing is at the top of the technology agendas for CEOs in the Kingdom, with investments in artificial intelligence, robotic process automation and 5G also popular, according to the global consultancy firm KPMG’s 2020 CEO Outlook survey.
While technological advances can bring security challenges, 88 percent of Saudi-based CEOs see technological transformation as an opportunity rather than a threat.
“The pace of technological adoption has quickened this year as organizations react to the new working reality. Most of the CEOs believe the pandemic has accelerated the creation of a seamless digital customer experience and [that the] creation of new digital revenue streams has advanced during the pandemic,” said Mazhar Hussain, chief disruption officer at KPMG in Saudi Arabia.
“Nonetheless, the pandemic has seen an uptick of cyberattacks, which has increased awareness and investment into cybersecurity. The number of vulnerabilities in most organizations’ operations has increased with remote work. Hence, companies must resist the urge to direct budget cuts toward preventative cyber measures and [view] the sharp increase in global cybercrime as a reason to keep advancing their cyber defenses,” he added.
At the same time, the pandemic has shaken CEO confidence in global economic growth, according to the KPMG survey. Almost 32 percent said they are less confident about global growth prospects in the next three years than they were at the beginning of the year.
While cloud computing investment is a priority, a survey in January by German business software company SAP found that while more than four-fifths (89 percent) of Saudi senior public sector executives agreed that data sharing helped them to improve on how they connected with citizens, many had not invested in training to implement this.
SAP found that while 83 percent of respondents said data sharing improved their innovation in current goods or services, only 22 percent did this with partners. And when it came to training, only 33 percent of respondents had retrained employees on how best to analyze data. This skills shortage was cited by 61 percent of respondents as being a barrier to meeting strategic change initiatives.
KPMG: 98% of Saudi CEOs set to invest in cloud technology in 2021
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KPMG: 98% of Saudi CEOs set to invest in cloud technology in 2021
- Artificial intelligence, robotic process automation and 5G also set for more investment, according to survey
- 88% of Saudi-based CEOs see technological transformation as an opportunity rather than a threat
Saudi Arabia strengthens food security with trout farming breakthrough
RIYADH: Saudi Arabia’s food security strategy has received a boost with a trout farming project developed through a partnership between King Abdulaziz City for Science and Technology and King Abdulaziz University.
The initiative, carried out at KACST’s research station in Al-Muzahmiyya Governorate, was supported by the Ministry of Environment, Water, and Agriculture’s National Livestock and Fisheries Development Program.
The project introduces trout as a species suited for diverse environmental conditions, expanding the availability of fish with high nutritional value. This move aims to address the growing domestic demand for seafood while mitigating potential supply chain disruptions.
This aligns with Saudi Vision 2030, which set a target of increasing domestic fish production to 600,000 tonnes annually to ensure sustainable food supplies.
The initiative also supports the National Fisheries Development Program’s goals of optimizing resource use, boosting the sector’s contribution to gross domestic product, achieving seafood self-sufficiency, and diversifying income sources.
The new project employs a recirculating aquaculture system, which uses less water than traditional methods and reduces the risk of parasites and viral infections that could harm fish.
These advanced systems also regulate key environmental factors in fish farming, such as temperature, oxygen levels, and nutrition, thereby enhancing aquatic animals health and quality.
This initiative aligns with the National Laboratory’s ongoing efforts to localize RAS technology using fresh water.
Trout were farmed and raised from the egg incubation stage to the point where they reached a commercial size of over 1,200 grams.
This success has encouraged the private sector to adopt the technology across various regions in Saudi Arabia, including Riyadh, Makkah, Al-Baha, and the northern regions.
Trout and other cold-water river fish were specifically chosen for local farming to meet the growing demand for high-protein, omega-3-rich, and vitamin-packed fish, which are essential for human health.
In October, the Ministry of Environment, Water, and Agriculture announced that Saudi Arabia’s fisheries and aquaculture production increased by 55.56 percent in 2023, surpassing 140,000 tons. This highlights the Kingdom’s commitment to achieving food self-sufficiency and promoting sustainable development.
The ministry noted that the country has achieved record-breaking production levels in saltwater and inland aquaculture projects, surpassing the 90,000 tonnes recorded in 2021.
Aquaculture in the Kingdom, which began in 1982, has grown substantially, establishing the nation as a leading exporter of white shrimp.
‘Paradigm shift’ as GCC urban population to surge 30% by 2030: Arthur D. Little
RIYADH: Urban populations across the Gulf Cooperation Council region are projected to grow 30 percent from 2020 to 2030, increasing demand for housing, infrastructure, and inclusive development, analysts say.
In its latest report, international management consulting firm Arthur D. Little said that 90 percent of GCC residents will live in cities by 2050, providing a $150 billion economic regional opportunity.
The study revealed that Saudi Arabia is leading this transition, with the Kingdom eyeing to build 500,000 new housing units to meet the rising demand.
Saudi Arabia is undertaking a dozen giga-projects to address the needs of its growing urban population. These developments are key to the government’s economic diversification goals, forming a core component of Vision 2030.
“We’re witnessing a paradigm shift. This isn’t about building cities — it’s about creating living, breathing economic ecosystems that grow from within local communities,” said Rajesh Duneja, lead researcher at Arthur D. Little.
Driven by Vision 2030 objectives and its Quality of Life Program, Saudi Arabia is striving for three of its cities to be recognized among the top 100 in the world for livability.
The consulting firm added that the Kingdom’s ongoing efforts are not just a construction initiative but a catalyst for opportunity, education, and long-term economic contribution, with Saudi Arabia embedding workforce development, small and medium enterprises, and local engagement in this journey.
Earlier this month, a report released by real estate and investment management firm JLL said that the ongoing urban infrastructure development in Saudi Arabia is creating new hotspots for growth, driven by a surge in tourism and economic diversification efforts.
In July, an analysis by British property consultancy Savills said that the Kingdom’s capital city, Riyadh, is poised to be one of the fastest-growing metropolizes in the world over the next decade, driven by the growth of the country’s mega projects.
In July, a report released by Statista also outlined urbanization progress in Arab world nations, with Kuwait already having a 100 percent urban population in 2023.
Statista added that 99.35 percent of people in Qatar live in urban areas, followed by Bahrain, the UAE, and Saudi Arabia, with 89.87 percent, 87.78 percent, and 84.95 percent, respectively.
The Arthur D. Little report said the surging demand for housing and infrastructure in the region also calls for community-driven strategies to adopt a more inclusive approach, as traditional infrastructure models alone cannot meet the scale of this demand.
“The pace of urbanization across the Middle East, especially Saudi Arabia, is unprecedented. To ensure that ambitious goals, such as those embodied in Vision 2030, are reached, it is vitally important that communities participate in, and feel part of, the changes,” said Arthur D. Little.
The analysis added that these community-focused strategies are not only enhancing social impact but also driving economic growth.
The management consulting firm projected that community-focused initiatives could support the region’s 4 percent gross domestic product growth trajectory, reinforcing its economic resilience amid global challenges.
“This is not just urban development. It’s the emergence of a new economic blueprint that places human potential at its core,” said Maurice Salem, principal at Arthur D. Little Middle East.
According to the study, the region’s demographic profile also strengthens the necessity for a community-driven approach.
“With only 3 percent of the population in Saudi Arabia over the age of 65, the Middle East has an unparalleled opportunity to leverage its young, dynamic workforce,” said the report.
It added: “When integrated with local talent, cultural heritage, and SME development, infrastructure projects become engines of socio-economic transformation.”
Oil Updates — crude gains as cooling US inflation points to possible easing
SINGAPORE: Oil prices rose on Monday as lower-than-expected US inflation data revived hopes for further policy easing, although the outlook for a supply surplus next year weighed on the market, according to Reuters.
Brent crude futures rose 36 cents, or 0.5 percent, to $73.30 a barrel by 07:21 a.m. Saudi time. US West Texas Intermediate crude futures climbed 39 cents, or 0.6 percent, to $69.85 per barrel.
“Risk assets, including US equity futures and crude oil, have started the week on a firmer footing,” IG markets analyst Tony Sycamore said, adding that cooler inflation data helped alleviate concerns following the Federal Reserve’s hawkish rate cut.
“I think the US Senate passing legislation to end the brief shutdown over the weekend has helped,” he said.
Both oil benchmarks fell more than 2 percent last week on concerns about global economic growth and oil demand after the US central bank signaled caution over further easing of monetary policy. Research from Asia’s top refiner Sinopec pointing to China’s oil consumption peaking in 2027 also weighed on prices.
Money managers raised their net-long US crude futures and options positions in the week to Dec. 17, the US Commodity Futures Trading Commission said on Friday.
Concerns about European supply eased on reports the Druzhba pipeline, which sends Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic and Germany, has restarted after halting on Thursday due to technical problems at a Russian pumping station.
Shipments resumed on Saturday, according to Belarus’ BelTa state news agency. On Sunday, Hungarian Foreign Minister Peter Szijjarto said supplies on Druzbha to the country had restarted.
Before the halt, the pipeline was shipping 300,000 barrels per day of crude.
US President Donald Trump on Friday urged the EU to increase US oil and gas imports or face tariffs on the bloc's exports.
The European Commission said it was ready to discuss with Trump how to strengthen what it described as an already strong relationship, including in the energy sector.
Trump also threatened to reassert US control over the Panama Canal on Sunday, accusing Panama of charging excessive rates to use the Central American passage and drawing a sharp rebuke from Panamanian President Jose Raul Mulino.
In the US, the number of operating oil rigs was up one to 483 last week, the highest since September, Baker Hughes reported on Friday.
Macquarie analysts projected growing supply surplus for next year, which will weigh down Brent prices to an average at $70.50 a barrel, from this year’s average of $79.64 a barrel, they said in a December report.
Closing Bell: Saudi main index slips to close at 11,849
- Parallel market Nomu lost 205.92 points, or 0.65%, to close at 31,238.29
- MSCI Tadawul Index shed 4.86 points, or 0.33%, to close at 1,484.56
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 43.07 points, or 0.36 percent, to close at 11,849.37.
The total trading turnover of the benchmark index was SR4.14 billion ($1.1 million), as 84 of the stocks advanced and 137 retreated.
The Kingdom’s parallel market Nomu lost 205.92 points, or 0.65 percent, to close at 31,238.29. This comes as 37 of the listed stocks advanced while 49 retreated.
The MSCI Tadawul Index also lost 4.86 points, or 0.33 percent, to close at 1,484.56.
The best-performing stock of the day was Saudi Vitrified Clay Pipes Co., whose share price surged 9.89 percent to SR38.90.
Other top performers included SHL Finance Co., whose share price rose 6.43 percent to SR18.20, as well as Taiba Investments Co., whose share price surged 4.97 percent to SR39.05.
Riyadh Cables Group Co. recorded the biggest drop, falling 6.30 percent to SR136.80.
Al Hassan Ghazi Ibrahim Shaker Co. saw its stock prices fall 5.15 percent to SR26.70.
Dr. Sulaiman Al Habib Medical Services Group also saw its stock prices decline 4.02 percent to SR286.60.
Meanwhile, Al-Baha Investment and Development Co. has announced moving its headquarters to Riyadh.
The company’s shares will be suspended for two business days starting Dec. 22, following the board of directors’ recommendation to reduce capital by 26.5 percent from SR 297 million to SR 218.3 million during an extraordinary general meeting held on Dec. 19.
The National Agricultural Development Co. has announced the release of its Sustainability and Environmental, Social, and Governance report.
According to a Tadawul statement, it outlines the company’s approach to embedding sustainability criteria within its strategic direction and operations as well. It reflects the firm’s commitment to its ESG responsibilities along with its devotion to sustainable development objectives in line with the Global Reporting Initiative standards.
NADEC’s strategy complements the requirements for economic growth, keeps pace with developments in the Kingdom, and aligns with Vision 2030, which emphasizes environmental sustainability and renewable energy as fundamental components of development.
The analysis further provides a comprehensive insight into NADEC’s sustainability initiatives and commitments for the year 2023. The statement also disclosed that NADEC will periodically issue reports to keep stakeholders informed of ongoing developments going forward.
NADEC ended the session at SR25.50, up 0.98 percent.
Alhasoob Co. has announced the termination of the non-binding memorandum of understanding to acquire all shares of Alkhorayef Printing Solutions Co. by issuing shares to its owner Alkhorayef Group Co.
A bourse filing revealed that this comes without reaching an agreement between the two parties and without any obligation on either party.
Alhasoob Co. ended the session at SR64.20, down 3.07 percent.
Saudi Basic Industries Corporation has announced the board decision to distribute SR5.1 billion in interim cash dividends to shareholders for the second half of the year.
According to a Tadawul statement, the total number of shares eligible for dividends amounted to 3 billion shares, with the dividend per share standing at SR1.70. The statement also revealed that the percentage of dividend to the share par value stood at 17 percent.
SABIC ended the session at SR67.00, up 0.30 percent.
Saudi Arabia accelerates digital transformation with new transport initiatives
- Aim to increase the transport and logistics sector’s contribution to Kingdom’s GDP from 6% in 2021 to 10% by 2030
- Strategy envisions increasing air freight capacity to over 4.5 million tonnes annually
RIYADH: Saudi Arabia’s Ministry of Transport and Logistics has taken a significant step forward in its digital transformation with the launch of a new Digitalization and Technical Processing Center, alongside the unveiling of the Unified Documents and Records Platform.
These initiatives were announced by Minister of Transport and Logistics Services Saleh Al-Jasser during a ceremony attended by senior officials and industry leaders, as reported by the Saudi Press Agency.
The new center and platform are part of the ministry’s broader strategy to accelerate digitalization in line with the National Transport and Logistics Strategy and Vision 2030 goals.
A primary aim of these efforts is to increase the transport and logistics sector’s contribution to Saudi Arabia’s gross domestic product from 6 percent in 2021 to 10 percent by 2030. This would generate an additional SR45 billion ($11.9 billion) in non-oil revenues annually.
To achieve these goals, the NTLS prioritizes infrastructure development and operational improvements. Key plans include expanding the railway network by approximately 8,080 km, which features the 1,300 km “land bridge” project, and enhancing port infrastructure to accommodate over 40 million containers annually.
The strategy envisions increasing air freight capacity to over 4.5 million tonnes annually, as well as expanding international flight destinations to over 250.
Improving service quality and safety is another critical focus. The NTLS aims to position Saudi Arabia among the top 10 countries in the Logistics Performance Index and secure 6th place in the Road Infrastructure Quality Index. It also seeks to reduce road traffic accidents and fatalities by over 50 percent and cut fuel consumption in the transport sector by 25 percent.
In conjunction with the digitalization efforts, the ministry also inaugurated a historical exhibition that highlights key documents, photographs, and equipment used throughout the history of Saudi Arabia’s transport sector.
The exhibition also includes specialized laboratories for document restoration and sterilization, as well as a centralized destruction center to safeguard the security and confidentiality of information.
Bandar Al-Roqi, general supervisor of the ministry’s Document and Archive Center, emphasized the collaborative nature of the project, acknowledging the contributions of various ministry departments in its successful realization.
The project reflects the ministry’s commitment to integrating modern technologies to drive digital transformation while preserving the country’s transport history.
