The US Treasury Department on Thursday slapped six Russian technology companies with sanctions for supporting Kremlin intelligence agencies engaged in “dangerous and disruptive cyberattacks.”
But only one of them stands out for its international footprint and partnerships with such IT heavyweights as Microsoft and IBM.
That company, Positive Technologies, claims more than 2,000 customers in 30 countries, including major European banks Societe Generale and ING, as well as Samsung, SK Telecom of South Korea and BT, the British telecommunications giant.
Its clients also include the FSB, a successor to the KGB that “cultivates and co-opts criminal hackers” who carry out ransomware and phishing attacks, the Treasury Department said. The US said big conventions hosted by Positive Technologies are “used as recruiting events” by the FSB and the GRU, Russia’s military intelligence agency.
GRU agents are the swashbucklers of Russian intelligence. The agency stands accused of spearheading the hack-and-leak operation that interfered in the 2016 US presidential election to favor Donald Trump. Its agents also conducted the most damaging cyberattack on record, the runaway 2017 NotPetya virus that did more than $10 billion in global damage, its victims including the shipping giant Maersk and pharmaceutical company Merck.
The CEO of the software industry-supported Internet Research Institute in Moscow, Karen Kazaryan, said he was not familiar with most of the Russian IT companies sanctioned on Thursday. But Positive Tech is well-known in the industry for its annual Hack Days conference, which is scheduled for May 20-21 at a Moscow hotel.
Former CIA analyst Michael van Landingham applauded the naming and sanctioning of Russian IT companies known to have aided and abetted malign government activity.
“Naming specific companies can create incentives for educated and skilled Russians who might be able to obtain jobs elsewhere where they don’t support Russian state hacking,” he said.
Positive Tech’s specialty is identifying vulnerabilities in popular software such as Microsoft’s Windows operating system. The world’s intelligence agencies regularly lean on companies like it not to disclose potent vulnerabilities publicly when they find them but to instead quietly share them for hacking adversaries’ networks.
The US did not accuse Positive Technologies of any such behavior and the Treasury Department declined to answer questions about the company’s activities beyond a press release.
Nor would a Microsoft spokesperson discuss the company’s business relationship with Positive Tech. On its website, Microsoft names the company as one of among more than 80 security software providers to which it gives early access to vulnerability information so they can make sure their customers get patches quickly. IBM also lists Positive Technologies as a security partner, offering customers one of its scanning tools.
IBM didn’t respond to requests for comment Thursday. Neither did other US tech companies HP and VMware, which Positive Technologies lists as technology partners.
On its website, Positive Technologies lists Russia’s Defense Ministry as among its first major clients, in 2004 when it was two years old with just 11 employees. It claimed more than 800 employees in 2018.
Russia’s biggest business database lists the company’s CEO and founder as Yury Maximov, about whom little is known other than he graduated from Moscow State University. The company did not respond to questions sent to press contacts on its website.
Positive Tech’s website boasts of a number of accomplishments, such as providing cybersecurity for the 2018 soccer World Cup hosted by Russia and publishing data that same year on 30 high-risk vulnerabilities. It said it opened its first international office in London in 2010 and its first US office in 2012.
The company has sometimes used Framingham, Massachusetts, as its US location in news releases, though it’s not recorded in city or state records as a business by that name. An office building with an address linked to the company is a co-working space that can be rented on flexible terms for “one person or more.”
Market research firm IDC listed Positive Technologies as one of the fastest-growing companies in security and vulnerability management in 2012, in part because it was so small at the time, growing nearly 82% year-over-year to $30 million in worldwide revenue. Nearly all that revenue came from assessing vulnerabilities. But by 2015, its worldwide revenues fell 37.6% to $26.5 million, according to IDC, which eventually stopped tracking the company.
Sanctioned Russian IT company partners with Microsoft, IBM
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Sanctioned Russian IT company partners with Microsoft, IBM
- Positive Technologies' website boasts of a number of accomplishments, such as providing cybersecurity for the 2018 soccer World Cup hosted by Russia
- The US said big conventions hosted by Positive Tech are “used as recruiting events” by the FSB and the GRU, Russia’s military intelligence agency.
Saudi Arabia, Azerbaijan sign SME deal to strengthen trade ties
RIYADH: Saudi Arabia and Azerbaijan have signed a comprehensive agreement focused on strengthening economic collaboration through the development of small and medium-sized enterprises, in a move that underscores both nations’ commitment to enhancing bilateral trade and investment.
The memorandum of understanding was formalized during the 8th session of the Saudi-Azerbaijani Joint Committee, held in Riyadh. It was signed between Saudi Arabia’s Small and Medium Enterprises General Authority, known as Monsha’at, and Azerbaijan’s Small and Medium Business Development Agency, known as KOBIA.
The SME agreement aligns with Saudi Arabia’s Vision 2030 strategy, which prioritizes economic diversification and entrepreneurship. For Azerbaijan, it marks another step in forging strategic partnerships in the Gulf region to bolster private-sector growth and create new market opportunities for innovative enterprises.
In a statement posted on X, Monsha’at said: “In the presence of H.E Minister of Investment, Eng. Khalid bin Abdulaziz Al-Falih, and the Deputy Prime Minister of the Republic of Azerbaijan, Samir Sharifov, Monsha’at, signed a MoU with ‘KOBİA’ Agency, as part of the 8th session of the Saudi-Azerbaijani Joint Committee activities, to strengthen cooperation in supporting the SMEs and entrepreneurship’s growth between the two countries.”
The agreement encompasses a broad range of initiatives, including knowledge exchange, joint training programs, and support for technical innovation. It also promotes investment opportunities, cross-border partnerships, and institutional collaboration through exhibitions and shared platforms.
In a separate announcement, the Saudi Ministry of Investment revealed the signing of two additional memorandums of understanding between private-sector companies from both countries.
“These agreements cover the development of maritime infrastructure and the establishment of industrial and medical facilities in the Kingdom, including the production of biotechnology and oncology medicines, the establishment of research and development centers, and infrastructure for re-export warehouses,” the Ministry noted in a post on X.
The joint committee also reviewed a series of potential joint ventures aimed at strengthening cooperation across mutually beneficial sectors. These initiatives are closely aligned with both countries’ long-term goals for economic diversification.
Officials from Saudi Arabia and Azerbaijan emphasized the importance of fostering dynamic SME ecosystems as engines of job creation, innovation, and global competitiveness. By aligning policy frameworks and enabling institutional collaboration, the two nations aim to unlock greater private-sector engagement and regional trade expansion.
Closing Bell: Saudi main index closes in red at 11,746
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Tuesday, losing 38.43 points, or 0.33 percent, to close at 11,746.20.
The total trading turnover of the benchmark index was SR6.87 billion ($1.83 billion), as 86 stocks advanced, while only 157 retreated.
The MSCI Tadawul Index decreased by 5 points, or 0.33 percent, to close at 1,493.77.
The Kingdom’s parallel market, Nomu, dipped, losing 89.34 points, or 0.31 percent, to close at 28,331.37. This comes as 35 stocks advanced, while 43 retreated.
The best-performing stock on the main index was Arabian Contracting Services Co., with its share price surging by 9.88 percent to SR131.20.
Other top performers included Al-Baha Investment and Development Co., which saw its share price rise by 4.94 percent to SR4.25, and Sumou Real Estate Co., which saw a 3.93 percent increase to SR 46.25.
The worst performer of the day was Alistithmar AREIC Diversified REIT Fund, whose share price fell by 3.39 percent to SR9.41.
Saudi Tadawul Group Holding Co. and Saudi Kayan Petrochemical Co. also saw declines, with their shares dropping by 2.94 percent and 2.83 percent to SR185 and SR5.83, respectively.
On the announcements front, Alinma Bank announced its interim financial results for the first three months of the year, with net profit amounting to SR1.5 million, a 1.3 percent dip compared to the previous quarter.
The bank’s total comprehensive income saw a 56 percent increase in the first quarter of 2025 to reach SR1.6 million.
Saudi Ceramic Co. also announced its financial results for the same period, with its net profit dipping by 88.4 percent to SR20.8 million compared to the previous quarter. Similarly, the company’s total comprehensive income saw a decrease of 88.7 percent to SR20.8 million.
Saudi Ceramic Co.’s share price traded 3.15 percent higher on the main market to reach SR27.85.
In the first quarter of 2025, Astra Industrial Group’s net profits saw a 30.7 percent quarter-on-quarter increase to reach SR171.8 million. The group attributed the increase to an uptick in gross profit in the pharmaceuticals sector and a decrease in finance costs in the specialty chemical sector.
The group’s share price traded 0.52 percent lower to reach SR153.
Diriyah Co. awards $1.13bn contract for King Saud University relocation
JEDDAH: Saudi Arabia’s Diriyah Co. has awarded a SR4.22 billion ($1.13 billion) construction contract to relocate King Saud University’s utilities and administration offices, advancing infrastructure development in one of the Kingdom’s flagship urban projects.
The project was given to a joint venture between China Railway Construction Corp.’s Saudi branch and China Railway Construction Group Central Plain Construction Co., according to a press release.
Part of the Public Investment Fund’s giga-project portfolio, the Diriyah development is a 14 sq. km mixed-use district poised to house nearly 100,000 residents and provide office space for tens of thousands of professionals across the technology, media, arts, and education sectors.
Once complete, it is expected to generate 178,000 jobs, attract nearly 50 million annual visitors, and contribute SR70 billion to Saudi Arabia’s gross domestic product.
Jerry Inzerillo, group CEO of Diriyah Co., said: “We are delighted to announce this major contract to support King Saud University, whose campus adjoins the Diriyah development area.”
He emphasized that the agreement represents a significant step in furthering efforts to enhance both educational and infrastructural excellence in the Kingdom.
“We are proud to support one of the Kingdom’s leading academic institutions in delivering enhanced infrastructure services that will benefit both its students and the broader university community,” Inzerillo said.
The contract includes the design and construction of several critical infrastructure components. These include a district cooling plant, water storage facilities, and a sewage treatment plant, as well as an LPG/SNG plant and a diesel pumping station.
The scope also covers a utility tunnel, irrigation tanks, office buildings, warehouses, and maintenance workshops.
Li Chongyang, chairman of China Railway Construction International Group, said the project reflects the firm’s commitment to delivering world-class infrastructure to the highest standards.
“We look forward to contributing to the success of this iconic project and supporting the continued growth of King Saud University,” he said.
This latest award brings the total value of contracts issued by Diriyah Co. in 2025 to over $2.9 billion, as the area undergoes rapid transformation into a global destination aligned with Vision 2030.
Qatar attracts $13.8m industrial investments in Q1
JEDDAH: Qatar recorded 50 million riyals ($13.8 million) in new industrial investments and a 32 percent rise in commercial registrations in the first quarter of 2025, underscoring momentum in its economic diversification and reform agenda.
At its quarterly meeting held on April 28 and chaired by Minister of Commerce and Industry Sheikh Faisal bin Thani Al-Thani, the ministry reviewed key performance indicators and introduced several policy updates aimed at bolstering the business environment.
Among the major reforms highlighted were streamlined company registration procedures for foreign investors and simplified environmental permitting processes.
“The meeting also discussed cooperating with the Ministry of Transport to include logistical activities under a single commercial registration; and announcing the automatic issuance of a tax card upon issuing a commercial registration,” the ministry said in a press release.
In January, Qatar unveiled two major policy frameworks: the Ministry of Commerce and Industry Strategy and the Qatar National Manufacturing Strategy 2024–2030. Under the theme “Achieving Sustainable Economic Growth,” the initiatives are aligned with Qatar National Vision 2030 and aim to enhance private sector participation, expand manufacturing capabilities, and attract foreign direct investment.
The strategies target a 3.4 percent compound annual growth rate in non-oil sectors by 2030 and aim to secure $100 billion in foreign investment, while promoting an innovation-driven economy.
As part of its efforts to support local industry, the ministry launched a new “National Product” webpage to promote fair competition and improve product quality. The verification period also began for factories seeking benefits under the In-Country Value Plus policy.
“The meeting further discussed the key performance indicators for various sectors and administrative units. Results showed that the contribution of the manufacturing sector to real gross domestic product reached 52.4 billion riyals in 2024,” the ministry said.
Qatar also made notable gains in global competitiveness, climbing from 18th in 2022 to 11th in 2024 in the International Institute for Management Development’s business efficiency rankings.
During the first quarter, the ministry conducted 39,558 inspection campaigns and reported significant progress under the Third National Development Strategy.
“The meeting also reviewed the progress of projects under the Third National Development Strategy – concluding that 17 percent of the ministry’s projects were completed and work is ongoing on 23 percent of projects,” the report said.
Efforts to reduce service fees and simplify business registration for overseas investors have contributed to an 87 percent increase in new commercial licenses compared to the same period in 2024. The time required to issue commercial registrations has also decreased significantly.
“Furthermore, the increase of permissible activities for home-based businesses from 10 to 63 activities led to a 54 percent surge in the number of home business licenses,” the ministry noted.
The Single Window platform introduced three new e-services in the first quarter, with 38 additional services scheduled for rollout later this year, supported by strong user satisfaction.
“Local patent applications, trademark registration applications, and copyright registration applications grew by more than 18 percent compared to the first quarter of 2024,” the statement added.
On the industrial front, eight new factories were launched in Q1, and non-hydrocarbon industrial exports reached approximately 29.8 billion riyals. The ministry also began reviewing six potential public-private partnership opportunities.
In consumer affairs, authorities ramped up inspection and awareness campaigns to deter trade violations and reviewed the nation’s strategic stockpile and food and fodder security.
The meeting was attended by Minister of State for Foreign Trade Affairs Ahmed bin Mohammed Al-Sayed, Undersecretary Mohamed bin Hassan Al-Maliki, assistant undersecretaries, and department directors.
It concluded with a review of project milestones and discussions on overcoming implementation challenges while improving operational performance.
Warehouse occupancy in Saudi Arabia nearing saturation: Knight Frank
RIYADH: Saudi Arabia’s industrial and logistics market is experiencing growth, with warehouse occupancy rates nearing saturation and rental prices in Riyadh increasing by 16 percent year-on-year, according to Knight Frank.
The firm’s latest “Saudi Arabia Industrial and Logistics Market Review” highlighted a booming sector driven by e-commerce expansion, strategic government initiatives, and surging foreign investment.
The Kingdom’s logistics hubs — Riyadh, Jeddah, and the Dammam Metropolitan Area— are operating at near-full capacity.
Riyadh leads with a 98 percent occupancy rate, while Jeddah and Dammam follow closely at 97 percent each.
This momentum was also reflected in occupancy rates in Abu Dhabi with its industrial and logistics market maintaining near-full capacity, mirroring Dubai’s tight supply.
Key hubs like Khalifa Economic Zones Abu Dhabi and Abu Dhabi Airports Free Zone saw sustained demand, driven by strategic infrastructure projects and growing manufacturing activity, according to a separate report by Knight Frank.
Riyadh’s prime warehouse spaces now command rents exceeding SR250 ($66.6) per sq. meter, while city-wide averages hit SR208.
“Despite a slowdown in demand during the second half of the year, city-wide rental rates increased by 16 percent year-on-year,” the report said.
Jeddah’s lease rates for Grade B facilities rose to SR238 per sq. meter, with the high-end Asfan district maintaining 100 percent occupancy at SR387 per sq. meter. Dammam Metropolitan Area saw rents jump 14.8 percent to SR202 per sq. meter, fueled by a chronic shortage of quality logistics space.
E-commerce and mega-projects fuel growth
Rapid urbanization, a tech-savvy consumer base, and giga-projects like the Special Integrated Logistics Zone and Sino-Saudi Logistics Zone are reshaping demand.
“Demographic shifts including rapid urbanization, increased female workforce participation, and a tech-savvy Gen Z and millennial consumer base are accelerating the growth of the e-commerce sector,” the report stated.
The 3-million-sq. meter Special Integrated Logistics Zone has attracted global players like SHEIN and Apple, while the 4-million-sq. meter Sino-Saudi zone aims to strengthen trade ties with China.
Government initiatives and private investment
The National Industrial Development and Logistics Program is a cornerstone of the Kingdom’s industrial strategy, aiming to increase the transport and logistics sector’s contribution to the gross domestic product to 10 percent by 2030, from 6 percent in 2021.
Public-private partnerships are flourishing, with projects like the Tamer Logistics Park and Agility Logistics Park set to expand supply in key regions.
“Substantial investments to improve and expand connectivity and trade infrastructure, along with regulatory reforms are helping transform Saudi Arabia into a logistics powerhouse,” the report emphasized.
Sustainability and digital transformation
The sector is also pivoting toward sustainability and automation. Companies like Maersk and Agility are adopting solar-powered warehouses, while digital tools streamline operations.
“Sustainability has become a major market driver, with companies integrating renewable energy fields and LEED-certified buildings,” said Adam Wynne, partner at Knight Frank.
With 36,000 factories projected by 2035 and FDI reforms attracting multinationals, Knight Frank predicts sustained growth.
“Saudi Arabia is on track to become a regional logistics powerhouse,” Wynne said, citing the Kingdom’s integration of “global expertise, modern infrastructure, and green initiatives.”
