Saudis need more than a good idea to create the next app hit

The coronavirus disease pandemic has given a new impetus to the digital transformation in Saudi Arabia, which is a key pillar of the Vision 2030. Social media
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Updated 04 October 2021
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Saudis need more than a good idea to create the next app hit

RIYADH: The KSA sees itself as a leading player in the vast and growing smartphone app race.

Saudi ‘buy now pay later’ fintech app Tamara (with 120 employees) raised $110 million in debt and equity funding from Checkout.com earlier this year.

And food delivery app HungerStation (founded in Dammam with over 1,400 employees) merged with Foodpanda, owned by Germany’s Delivery Hero, for an undisclosed sum in 2016.

With smartphone penetration at over 80 percent of the population, positioning it at number three globally, “Saudi Arabia dominates the region’s mobile app use because of its size and its purchasing power”, Imad Jaroudi, CEO of Jaroudi Media (a digital marketing firm based in Riyadh, Manama and Beirut) told Arab News. 

While tech might have been a luxury before COVID-19, it soon became a necessity

Kholoud Al Mohammadi, a startup mentor and Investment Manager at FII Institute

“The majority of its population is under the age of 40. These are young and talented individuals who are quick to embrace the new tech era and want to be part of it.” 

The coronavirus pandemic has been an additional driver of app use in Saudi Arabia as it was across the world. 

“Sectors normally slow to embrace tech, such as government and healthcare, were compelled by the pandemic to deliver their services online”, says Kholoud Al Mohammadi, a startup mentor and Investment Manager at FII Institute. “While tech might have been a luxury before COVID-19, it soon became a necessity.” 

Most Saudis can attest to that, as public service apps such as Covid passport app Tawakkaina and health services app Sehhaty became an essential part of daily life — in addition to the host of retail, gaming and social media apps already present on most smartphones.

Market research firm Grand View Research values the global mobile app market at over $170 billion and projects growth at a compound annual growth rate (CAGR) of 11.5 percent between 2021 and 2027.

But there are some 9 million apps available worldwide and counting fast - so how does a Saudi app developer stand out from the crowd and establish a new brand in such a competitive environment?

It requires a lot more than just a good idea. Initial development costs run from SR60,000 to SR150,000 — with some e-commerce apps going into the millions. But the creation of the app is only part of the story, and many would-be innovators are not fully aware of that.

“If someone asks me to help develop an app, I’ll first see if it is simply replicating many other apps”, says Jaroudi. “After all, why spend time and money on something that is already out there? Then I will ask about the feasibility study. Someone might come up with a good concept — but they want to embark on it right away, without any market research or thought about budgeting and management.”  

If someone asks me to help develop an app, I’ll first see if it is simply replicating many other apps

Imad Jaroudi, CEO of Jaroudi Media

Khurram Ali, CEO of Riksof (a Gulf-wide app developer), agrees, stressing that the viability of an app “is mainly about execution. You start off with an idea – this is a problem I see and this is my solution. But the execution is how you take your idea to the market: Obviously having a fast and streamlined app that provides clear value – but then handling customer service, managing cashflow and raising the funds to carry you through to the point that your product takes hold.” 

No innovator will have all of those skills, or that ability to multitask — therefore an app developer must have a strong team from the outset, and that includes IT talent. For while it may be tempting to outsource all development to a low-cost region such as India or Pakistan, this poses a risk of the management team not fully understanding their own product – a painfully evident shortcoming when seeking further investment. 

Even with sound management in place, a solid feasibility study and business plan, and a unique offering that delivers real value, an app could still receive negative feedback if its functionality is below par in the early stages. 

Ali is reassuring on this point. “It happens all the time”, he says. “You get poor reviews and improve the app based on that. It’s just not possible for the first release to be perfect - but if you address that negative feedback, you can improve your solution and grow your business. Someone might install and then delete your app - but install it again six months later if it’s recommended by a friend.”

And based on customer feedback, the app can evolve in unexpected ways – so flexibility is key. For instance, Dubai’s Careem – a regional unicorn - started as a corporate car booking solution, and morphed into taxi services, then into food delivery. Careem (with over 1000 employees, not including driver ‘partners’) was acquired by Uber in a $3.1 billion transaction in 2019.

The app space is no doubt tough to crack — in Saudi Arabia as anywhere else. But this is a rapidly expanding online industry, worth many billions. With a smart approach, and with lessons learned from others’ successes and challenges, there is still plenty of room for innovative new players.


Saudi crude output inches up to 9m bpd: JODI

Updated 5 sec ago
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Saudi crude output inches up to 9m bpd: JODI

RIYADH: Saudi Arabia pumped 9 million barrels per day of crude in April, a 0.54 percent month-on-month increase, according to the latest data from the Joint Organizations Data Initiative.

The same dataset showed that crude exports rose to 6.17 million bpd, up 7.16 percent from March.

Direct domestic use of crude for power and industry slipped to 377,000 bpd, a decline of 1.6 percent versus the previous month and 6 percent below the April 2024 tally.
 
Demand from local refineries also eased. Crude intake fell 17.22 percent to 1.84 million bpd.

JODI, a platform overseen by the International Energy Forum, compiles monthly oil statistics supplied voluntarily by national governments. The Kingdom’s figures are published with a roughly two-month lag, providing one of the few publicly available windows into Saudi production, exports, and domestic consumption patterns.

For much of the period between 2020 and 2024, the wider OPEC+ alliance had been restraining supplies to shore up prices, beginning with the record 9.7 million-bpd collective cut agreed in April 2020 at the height of the pandemic and tapering only gradually through April 2022.

Additional curbs followed, with the group instituting a 2 million bpd reduction in October 2022 and layered on a series of voluntary cuts totaling 1.6 to 2.2 million bpd from May 2023, moves that remained in force into early 2025.

In a shift of strategy, OPEC+ members agreed in early May to bring back barrels in stages, scheduling incremental increases for May, June, and July and signaling room for a further 2.2 million bpd to return by November if market conditions allow.

A separate market context came from the June Monthly Oil Market Report issued by OPEC on June 16, in which the producer group said the global economy “has outperformed expectations” in the first half of 2025 and should remain resilient in the second half.

OPEC kept its forecasts for oil demand growth in 2025 and 2026 unchanged but trimmed its projection for non-OPEC+ supply growth in 2026 to 730,000 bpd, 70,000 bpd lower than the previous month, citing plateauing US shale output.

Geopolitical risk also featured prominently in late-June trading. Iran’s parliament approved a bill to shut the Strait of Hormuz, the 33-km wide passageway that carries close to one-fifth of the world’s crude exports.

Tanker-tracking data compiled by Reuters shows supertankers making U-turns, idling near the Gulf, or zigzagging to avoid the choke point as companies rush to limit their exposure. In response, freight rates for the largest vessels more than doubled, and Brent crude hit a five-month high.

A full closure — still subject to sign-off by Iran’s higher supervisory bodies — would force Gulf exporters to divert cargoes around Africa or rely on overland pipelines, moves that analysts say could squeeze near-term supply and push oil prices sharply higher. The Strait routinely handles about 20 percent of globally traded oil, underlining why even the threat of disruption can jolt energy markets.


Closing Bell: TASI rises 1.3% as market breadth remains positive 

Updated 15 min 5 sec ago
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Closing Bell: TASI rises 1.3% as market breadth remains positive 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose 1.29 percent to close at 10,710.24 on Monday, supported by broad-based gains across sectors. 

Trading activity remained healthy, with turnover hitting SR4 billion ($1 billion) and the market recording 225 advancers versus 20 decliners.

The MSCI Tadawul 30 Index also climbed 1.16 percent to close at 1,377.63. The parallel market Nomu ended 0.80 percent higher at 26,358.07.

Red Sea International Co. led the main market gainers with a 9.97 percent jump to SR38.60. Al-Rajhi Co. for Cooperative Insurance followed with an 8.86 percent gain to close at SR113. 

Other top performers included National Gypsum Co., which rose 7.61 percent to SR19.52; Americana Restaurants International, up 6.86 percent at SR2.18; and Naseej International Trading Co., which added 6.53 percent to reach SR78.30. 

On the downside, Sustained Infrastructure Holding Co. was the biggest decliner, falling 3.07 percent to SR25.30. 

Alistithmar AREIC Diversified REIT Fund dropped 1.58 percent to SR8.12, while Eastern Province Cement Co. slipped 1.17 percent to SR29.50. 

Other notable fallers included Knowledge Economic City, down 0.92 percent at SR12.86, and Saudi Industrial Investment Group, which closed 0.71 percent lower at SR16.70. 

On the announcement front, Etihad Atheeb Telecommunications Co., known as GO Telecom, confirmed the completion of its acquisition of a 51 percent stake in Ejad Tech for Information Technology.

The deal, valued at SR86.7 million, was finalized using internal company resources. The group stated that SR40 million was paid upon signing, with the remaining SR46.7 million to be disbursed in two installments contingent upon target achievements — SR23.7 million by the end of 2025 and SR23 million by the end of 2026. 

GO Telecom said the acquisition is part of a strategic initiative to broaden its business base and enter new sectors. Ejad Tech is recognized as one of the top five digital transformation service providers in the Middle East. 

GO Telecom shares closed up 0.98 percent at SR93.10. 


Digital transformation to boost Saudi industrial productivity by up to 25%, says Aramco CEO 

Updated 55 min 32 sec ago
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Digital transformation to boost Saudi industrial productivity by up to 25%, says Aramco CEO 

  • Amin Nasser said effective integration of digital technologies could increase Kingdom’s industrial productivity by 15%
  • He was speaking during the Saudi Industry Forum in Dhahran

RIYADH: Integrating digital technologies is set to increase Saudi Arabia’s industrial productivity by 15 to 25 percent, according to Aramco President and CEO Amin Nasser. 

Speaking during the Saudi Industry Forum in Dhahran, Nasser stated that the Kingdom’s shift into a new industrial era calls for an increased focus on digital transformation and the need to align it with proactive cybersecurity strategies. 

This comes as Saudi Arabia works to solidify its position as a regional and global digital powerhouse, backed by major advances in artificial intelligence, data centers, e-government, and human capital development.  

The Kingdom has emerged as the Middle East and North Africa’s largest digital economy, with a market value exceeding SR495 billion ($131.9 billion) in 2024 — equivalent to 15 percent of its gross domestic product, according to figures from the Ministry of Communications and Information Technology.  

In his remarks, Nasser said: “Preliminary estimates suggest that effective integration of digital technologies could increase Saudi Arabia’s industrial productivity by 15 percent to 25 percent.”  

The Saudi Industry Forum 2025 is sponsored by Eastern Province Governor Prince Saud bin Naif bin Abdulaziz. X/@sif_2030

He added: “Thanks to successive technological developments, industries will emerge over the next 10 years dominated by advanced technologies to a degree we have never seen before.” 

Nasser noted that the world is undergoing profound geopolitical shifts and intensifying competition across technological, industrial, and economic domains — trends that are accelerating the transformation of Saudi Arabia’s industrial landscape. 

He emphasized the need to prepare for this future, particularly as the Kingdom continues to invest in artificial intelligence, the Internet of Things, robotics, and automation. 

These technologies, he explained, are aimed at more than just optimizing factory operations; they are vital for enhancing industrial productivity and ensuring operational reliability. 

“At Aramco, we are working to establish a digital infrastructure that becomes an integral part of empowering the industrial sector,” Nasser said, adding: “This includes the launch of Aramco Digital Company, as well as a 450 MHz private wireless network dedicated to industrial use by the private sector.” 

He continued: “Aramco Digital has also introduced an edge artificial intelligence service — AI on the Edge — designed for critical industrial facilities and complex applications, such as crowd management during Hajj.” 

In the cybersecurity sphere, Aramco established Cyberani in 2021, a company focused on delivering industrial-grade solutions and software protection technologies. 

“Aramco is working on projects to develop artificial intelligence platforms, data centers, and smart industrial complexes,” Nasser said. 

He warned of the risks accompanying digital advancement, stating: “A technical malfunction or external interference through digital systems or control platforms could impact operations and disrupt the performance of industrial and economic facilities — especially those that do not invest sufficiently in digital protection.” 

Highlighting the human element in digital security, he stated: “The most critical aspect of proactive protection systems is the development of human capabilities and deep expertise.” 

Nasser concluded by stressing the importance of localizing digital supply chains and enhancing technological resilience. 

“Building future Saudi industries supported by flexible supply chains, competitive costs, and excellence in artificial intelligence is essential and highly important — but it is not enough unless it is accompanied by proactive investment in digital protection,” he said. 

The Saudi Industry Forum 2025, held from June 23–25 at the Dhahran International Exhibition Center, is sponsored by Eastern Province Governor Prince Saud bin Naif bin Abdulaziz. 

The event aims to elevate the Kingdom’s industrial sector in alignment with Saudi Vision 2030, which seeks to diversify income sources and increase the sector’s contribution to the gross domestic product. 


Egypt records 77% rise in remittances over 10 months

Updated 23 June 2025
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Egypt records 77% rise in remittances over 10 months

  • Between January and April, remittance inflows rose 72.3% year on year to $12.4 billion
  • Annual urban headline inflation rate accelerated to 16.8% in May, up from 13.9% in April

RIYADH: Remittances from Egyptians working abroad rose by more than 77 percent in the first 10 months of the 2024-25 fiscal year, reaching a record $29.4 billion.

Between January and April alone, remittance inflows rose 72.3 percent year on year to $12.4 billion, official data from Egypt’s central bank showed.

The sharp increase underscores growing confidence among expatriates in the country’s financial system and reflects a broader improvement in Egypt’s external financial position.

The Central Bank of Egypt attributed the surge to recent measures aimed at stabilizing the exchange rate and encouraging the use of formal remittance channels.

The impact of these policies is also evident in the rise of Egypt’s net international reserves, which climbed to $48.5 billion at the end of May, up from $47.8 billion in March.

In a statement, the central bank noted: “On a monthly basis, remittances in April 2025 increased by 39 percent year on year, reaching approximately $3 billion, compared to $2.2 billion in the same month last year.”

The Central Bank of Egypt attributed the surge to recent measures aimed at stabilizing the exchange. File/Reuters

The rebound in remittance flows comes amid broader economic reforms pursued under an International Monetary Fund-backed stabilization program. These reforms have bolstered Egypt’s foreign currency position and helped attract more international capital.

In May, Prime Minister Mostafa Madbouly announced that Egypt recorded real gross domestic product growth of 3.9 percent during the first half of the fiscal year. Private sector investment surged by 80 percent, while foreign direct investment rose by around 17 percent.

Inflation, however, remains a key challenge. The annual urban headline inflation rate accelerated to 16.8 percent in May, up from 13.9 percent in April, driven largely by continued pressure on non-food prices.

These inflation trends come as Egypt’s broader economic landscape continues to be shaped by both domestic and global pressures. The government is navigating a delicate recovery amid external shocks, ongoing structural reforms, and efforts to manage public debt.  

In February, Moody’s affirmed Egypt’s “Caa1” long-term foreign and local currency ratings with a positive outlook, citing improved debt servicing capacity, higher reserves, and falling borrowing costs.  

The ratings agency noted that recent currency devaluation and flotation helped boost foreign exchange reserves and reduce debt vulnerabilities. While a “Caa1” rating denotes high credit risk, the positive outlook reflects the government’s efforts to control inflation and stabilize interest rates. 


Saudi PIF launches commercial paper program to diversify funding sources

Updated 49 min 9 sec ago
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Saudi PIF launches commercial paper program to diversify funding sources

  • Program will enable PIF to issue short-term debt through offshore special-purpose vehicles
  • Moody’s Ratings said programs will operate under newly established special purpose vehicles

RIYADH: Saudi Arabia’s Public Investment Fund has launched its first commercial paper program, introducing a new tool to diversify its funding sources and enhance short-term liquidity management.

A commercial paper is a debt instrument used to raise short-term funding, offering faster access to funds than traditional loans. It is widely used in global financial markets, offering PIF greater flexibility in meeting its needs while aligning with its dynamic investment priorities.

The CP program will enable PIF to issue short-term debt through offshore special-purpose vehicles, enhancing its liquidity management and complementing its long-term capital-raising initiatives.

PIF is Saudi Arabia’s primary investment arm, tasked with advancing economic transformation under Vision 2030. Shutterstock

According to a press release, the initiative, which includes US and Euro CP sub-programs, has received top-tier credit ratings of Prime-1 from Moody’s and F1+ from Fitch, underscoring its strong financial standing.

PIF has consistently demonstrated its ability to pioneer new financial instruments. In 2022, it became the first sovereign wealth fund globally to issue a green bond, including a landmark century green bond, followed by a successful $3.5 billion sukuk issuance, according to the fund.

PIF’s Head of Global Capital Finance and Investment Strategy and Economic Insights, Fahad Al-Saif, emphasized the program’s role in strengthening the fund’s resilient and adaptive financial framework. 

“The establishment of our CP program reflects the continued strength and depth of PIF’s capital raising strategy; one that is dynamic, resilient, and fit for purpose, aligning funding solutions with our long-term investment priorities,” he said.

In a press release, Moody’s Ratings said that the programs will operate under newly established special purpose vehicles, CPDE Investment Co. and CPNL Investment Limited.

“PIF has an excellent liquidity profile,” Moody’s said in its rating rationale, citing the fund’s cash reserves of SR106 billion ($28 billion) and undrawn credit facilities as key strengths.

According to the agency, the USCP program will support maturities of up to 397 days, while the ECP program will cover maturities of up to 364 days, with proceeds earmarked for general corporate purposes.

PIF is Saudi Arabia’s primary investment arm, tasked with advancing economic transformation under Vision 2030. Through strategic partnerships and investments, the fund aims to build future-ready industries, create employment opportunities, and promote sustainable development.

As the driving force behind Saudi Arabia’s Vision 2030, PIF has established 103 companies since 2017, fostering economic diversification and sustainability.