Day 2 of LEAP24 sees $848m investments across 7 new funds 

LEAP is in its third edition.
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Updated 05 March 2024
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Day 2 of LEAP24 sees $848m investments across 7 new funds 

RIYADH: Saudi Arabia’s international technology conference, LEAP, sets the stage for a thriving startup and venture capital ecosystem in the region, announcing seven new funds worth $848 million.

Following in the footsteps of its previous years, the third edition of the event continues to witness several significant announcements that seek to transform the technology sector locally and globally.

Kicking off the day, InvestCorp announced the establishment of a $500 million fund in Saudi Arabia, which includes a $35 million investment from Saudi Venture Capital Co. The fund will focus on investing in Saudi companies in their growth stages.

In another boost to emerging companies, Saudi Arabia’s Takamol Holding announced its $53 million venture capital arm, Takamol Ventures.

The VC is established to support early-stage technology companies in the Middle East and African markets.

Similarly, Oasis Capital unveiled their “Oasis Fund II,” a $100 million venture dedicated to empowering international tech founders in their early stages.

Plug and Play, a major startup accelerator, announced a $50 million fund, making it its first in the region.

P&P intends to invest in Saudi, Middle Eastern, and North African startups with a focus on software and technology development.

X by Unifonic, a startup itself, also unveiled its new seed fund worth $15 million investment, focusing on software as a service and business-to-business ventures in the MENA region, Pakistan, and Turkiye.

During the forum, the National Development Fund, Social Development Bank, Ignite, and the Saudi E-Sports Federation partnered to announce an $80 million accelerator VC fund managed by Merck Capital and a $40 million VC investment fund managed by Impact46.

The funds will focus on accelerating the growth of the local gaming industry and attracting VC investment in the sector.

Taking to the main stage in Riyadh, the CEO of Saudi Arabia’s National Technology Development Program, Ibrahim Neyaz, announced the launch of five new products, marking another boost to the Kingdom’s technology, VC, and startup divisions.

Equipped with a $266 million budget, the entity’s first initiative, “Fuel,” seeks to support VC funds investing in deep tech and emerging tech from pre-seed to pre-initial public offering stages.

Its targeted technologies include generative AI, space tech, quantum computing, smart cities, and biotech.

Also, with a $266 million budget, NTDP’s second unveiled venture, “Artificial Intelligence Mission,” is a platform that provides access to research and development infrastructure, talent development, data, and venture building.

The CEO highlighted that the program’s intended outcomes over the next five years include 800 to 1,000 individuals trained in AI and machine learning, as well as 70-100 new AI-native ventures.

Neyaz outlined NTDP’s third announcement, Source Tech, a grant-based product designed to incentivize IT and outsourcing firms to establish and expand their services in the Kingdom. It will be equipped with a $15 million budget.

The initiative seeks to boost women’s participation in the information and communication technology sector, create upwards of 2,000 jobs, and provide grants up to SR5 million ($1.33 million) per company.

The body also announced another grant-based product, “Transform+,” which is designed to bridge the technology gap for startups and accelerate cloud adoption. It holds a $33 million budget.

Transform+ will mainly target startups as well as small and medium enterprises, with a grant possibility of up to SR 1 million per company and a target of over 1,000 tech companies adopting state-of-the-art cloud technology.

Marking its final announcement, the CEO unveiled a $26 million investment in “Fund Swift,” which aims to provide bridge financing for startups that close early-stage investments to be repaid after VC capital deployment.

The fund’s target beneficiaries are early-stage startups, which will be able to acquire financing amounting to 50 percent of VC’s commitment, up to SR5 million per startup.

Continuing the ongoing bid to “digitize” the Kingdom, Minister of Transport and Logistics Saleh Al-Jasser utilized the LEAP platform to announce two new initiatives to bring future technologies to the sector.

On the sidelines of the forum, the minister launched the new “Logistic 2” platform, which will replace multiple platforms with a unified window that includes more than 140 logistical services.

The initiative aims to unify the beneficiary experience, provide all logistical services through a smooth journey for beneficiaries, increase the quality and efficiency of logistical services, and improve operations.

This comes as part of the efforts to consolidate the Kingdom’s position as a global logistics center and enhance Saudi Arabia’s position in the Logistics Performance Index issued by the World Bank.

The minister also unveiled the new version of the Mawani community platform, which will automate all operational processes in the ports sector and connect all stakeholders from the government and private sectors on a unified platform, aiming to raise the ports’ competitiveness.

Mawani’s new framework seeks to facilitate the exchange of data between the government and private sectors via a secure interface, reduce the time spent on procedures by 50 percent, contribute to a 30 percent increase in port sector productivity, and lead to annual financial savings of SR10 million.

Continuing LEAP’s streak of significant investments in Saudi Arabia’s tech sector, global giant and leading provider of global hybrid cloud, AI, and consulting expertise, IBM, announced its plans to invest over $200 million in talent and infrastructure in a new IBM Software Lab in the Kingdom’s capital, Riyadh.

The lab will focus on accelerating digital innovation and product development, management, and design.

The IBM Software Lab’s goal will be to accelerate skills building and help create high-quality jobs for skilled young IT professionals in Saudi Arabia’s technology ecosystem, co-creating solutions to export globally.


How Saudi Arabia’s KAUST is pushing the envelope on Generative AI possibilities

Updated 12 July 2024
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How Saudi Arabia’s KAUST is pushing the envelope on Generative AI possibilities

  • Launch of King Abdullah University of Science and Technology’s Center of Excellence was announced on July 1
  • The goal is to find solutions aligned with four national priority areas outlined in Kingdom’s RDIA Vision 2030

RIYADH: Saudi Arabia’s King Abdullah University of Science and Technology is joining the global artificial intelligence race by accelerating generative AI research and development through models that align with the Kingdom’s Research Development and Innovation Authority’s Vision 2030.

“Generative AI (GenAI) is on its way to transform every aspect of our civilization and has already started doing so. It will be central to the future development of (Saudi Arabia), with a plethora of applications in health care, industry, energy, sustainability and entertainment, among many others,” Bernard Ghanem, chair of the Center of Excellence in Generative AI at KAUST, told Arab News.

On July 1, KAUST announced the launch of its Center of Excellence (CoE) on Generative AI, which intends to be the premier research, development, and innovation hub for pioneering generative AI technology aimed at addressing the most pressing challenges faced by the Kingdom and the world.

KAUST's new Center of Excellence (CoE) on Generative AI aims to be the premier research, development, and innovation hub for pioneering generative AI technology in the Kingdom. (KAUST photo)

“The KAUST GenAI CoE will push the envelope on what is possible with GenAI, in terms of technical capabilities, applications and real-world impact,” Ghanem said.

“We envision that the CoE will play a major role in boosting and expediting the GenAI landscape in the Kingdom and the world at large, leading to an explosion of new models with real-world applications in the four national priority R&D sectors identified by the Kingdom.”

KAUST’s mission is to enable GenAI research and development through GenAI models to find solutions aligned with the four national priority areas outlined in the Kingdom’s RDIA Vision 2030: Health and wellness; sustainability and essential needs; energy and industrials; and economies of the future.

“Throughout its lifetime, the GenAI CoE will work with partners in the Kingdom and the world to identify specific challenges to tackle within each of the four RDI pillars,” Ghanem said.

Bernard Ghanem, chair of the Center of Excellence in Generative AI at KAUST. (KAUST photo)

He outlined KAUST GenAI CoE’s strategies for using GenAI in the Kingdom’s priority research and development areas.

For health and wellness, the center aims to develop a GenAI multi-modal foundation model designed for clinical image analysis as well as establish a GenAI-based drug design and development pipeline for the Arab population.

In line with sustainability, KAUST GenAI CoE is working to develop GenAI foundation models for Earth observation data from satellite inputs as well as using the set foundation models for insights about Earth observation, with emphasis on specific-use cases including agricultural informatics, ecosystem assessment, and weather forecasting and prediction.

On energy and industries, Ghanem explained that the center of excellence was developing and specializing in GenAI foundational models in the domain of chemistry.

​KAUST’s mission is to enable GenAI research and development to find solutions on health and wellness, sustainability and essential needs, energy and industrials, and economies of the future. (Shutterstock image)

The center is using “foundation models for chemical reaction optimization (i.e., discovering the optimal chemical setup for a reaction to produce the best outcomes) and advanced material discovery and synthesis (i.e., combining GenAI models with an automated robotic chemistry lab for significantly expedited real-world discovery).”

Finally, in its mission to build the economies of the future, the GenAI Center of Excellence is developing and specializing in multi-modal GenAI models for business and government transformation. Through this, it aims to create GenAI models for the education sector such as intelligent tutoring for students and teacher assistance.

Ghanem said that the work in GenAI also extended to establishing “more expressive and more efficient GenAI models for visual content creation to support the growing creative industry such as social media, gaming, and entertainment in general.”

“The prospects of GenAI in creating massive value are supported by recent reports that expect this technology to conservatively add to the world economy a market size of several hundreds of billions of USD by 2030 and to significantly contribute to Saudi Arabia’s GDP by 2030,” Ghanem said. 

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Ghanem explained that this mission would be executed through three main pillars: “The innovation of general-purpose GenAI models that are endowed with properties needed for ubiquitous, efficient and trustworthy deployment, the specialization of these models for solutions in all four pillars of the RDIA … and the delivery of the Kingdom’s ambition to accelerate the adoption of GenAI in the Kingdom by focusing on translational research and talent development.” 

With advances in Gen AI, new concerns are raised about the technology’s negative societal impacts, such as data privacy, environmental sustainability, and disparities in quality and coverage across regions and cultures. 

The KAUST CoE plans to address these concerns through its research projects on GenAI trustworthiness, efficient training and inference, and Arabic language model development. 

Ghanem underlined their mission in these projects to “usher in the next phase of GenAI technological evolution headlined by trustworthiness, internationalization, open access, and less environmental impact.” 

The GenAI CoE also intends to focus on making a positive impact through GenAI training and upskilling programs for KAUST researchers, partners, and the general public. Through their training outreach initiatives, the CoE hopes to address the shortage of GenAI talent in Saudi Arabia. 

File photo showing participants in the World Artificial Intelligence Competition for Youth held at KAUST in Thuwal last year. KAUST has emphasized the importance of such competitions in fostering AI skills and knowledge among young people. (SPA)

In a press statement, the center recognized that much more will be needed in the way of training, especially at the national level, “to truly drive significant impact in this aspect.” 

When asked what scientific, technical and upskilling challenges need to be addressed to advance the Saudi GenAI sector, Ghanem spoke of the importance of “access to large-scale data, talent development, GenAI hardware infrastructure, and GenAI Investment. 

“The GenAI ecosystem in the Kingdom is young and flourishing, and much progress has been made so far. However, several challenges still remain,” Ghanem said. 

“Arguably, one main reason why popular GenAI tools perform so well right now is their access to large-scale data for training and fine-tuning. Getting access to such volumes of data is crucial for future GenAI development in the Kingdom. Although efforts are ongoing in this respect within Saudi Arabia, more can be done to open source data from various organizations and entities.” 

KAUST's also aims to create GenAI models for the education sector such as intelligent tutoring for students and teacher assistance. (Shutterstock image)

Developing a suitable GenAI environment in Saudi Arabia, Ghanem said, “will require a mass-scale talent development program (i.e., GenAI for the masses). This includes access to higher education in the field, but more importantly, it is based on short-term and focused training programs that teach the essentials of GenAI development to non-experts.” 

Ghanem believes that having access to large-scale data and sizable local talent is not enough for a thriving GenAI ecosystem. 

“Access to specialized hardware accelerators (e.g., high-end GPUs) is paramount for GenAI large-scale training and mass inference. Unfortunately, without access to enough of this hardware infrastructure, progress will be dampened, and the ecosystem will not progress and deliver impact in a timely manner,” he said.

On the topic of GenAI investment, Ghanem explained that healthy investment in this sector for homegrown and internationally competitive technology and commercial solutions is essential for a thriving and self-sustaining GenAI ecosystem. 

“While there are efforts in this respect currently ongoing, more concerted efforts can be made to address this challenge in such a fast-paced and ever-evolving field,” he said. 

“Through the CoE, new GenAI models will be developed and deployed to tackle the most pressing national and global challenges. We will do so while maintaining the utmost levels of AI ethical standards, by enforcing key values (e.g., fairness, safety and trustworthiness) in our R&D pipelines.”
 

 


Investment ministry signs MoU with Saudia Group to support investors

The Kingdom’s Ministry of Investment signed a memorandum of understanding with the Saudia Group on Thursday. (@MISA)
Updated 11 July 2024
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Investment ministry signs MoU with Saudia Group to support investors

  • The MoU will contribute to the Kingdom’s efforts to create an attractive investment environment, the ministry said

RIYADH: The Kingdom’s Ministry of Investment signed a memorandum of understanding with the Saudia Group on Thursday to provide quality services and support to investors.

The MoU will contribute to the Kingdom’s efforts to create an attractive investment environment, the ministry said. 

Saudia Group is an aviation conglomerate and consists of a diverse portfolio, comprising 12 strategic business units which all support the advancement of the aviation sector in the Kingdom and the Middle East and North Africa region.

The partnership will improve travel procedures and logistical services for investors and provide private aviation and concierge services to meet their needs in various sectors. 


Saudi Arabia’s civil aviation sector sees 17% surge in passenger numbers

Updated 11 July 2024
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Saudi Arabia’s civil aviation sector sees 17% surge in passenger numbers

RIYADH: Saudi Arabia’s civil aviation sector experienced a 17 percent annual surge to 62 million passengers in the first half of 2024, amidst increasing domestic and international travel demand. 

According to official statements from the General Authority of Civil Aviation, the period also recorded a total of 446,000 flights, marking a 12 percent increase compared to 2023 figures. 

Moreover, air cargo traffic through the Kingdom’s airports also saw an uptick, soaring by 41 percent to 606,000 tonnes during the same period. 

This aligns with the Kingdom’s aviation goals, which include tripling annual passenger numbers to 330 million, expanding connectivity to over 250 destinations from its 29 airports, and increasing air freight capacity to 4.5 million tonnes of cargo per year by 2030. 

Additionally, King Khalid International Airport led the growth trajectory with 17.7 million passengers, reflecting a 21 percent increase year-on-year, and 132,000 flights, up by 15 percent from the previous year. 

Similarly, King Abdulaziz International Airport recorded a 16 percent rise in passengers to 24 million and 148,000 flights, indicating a 13 percent increase.  

Furthermore, King Fahad International Airport saw 6 million passengers in the first half, a 15 percent year-on-year growth rate. The airport handled 45,000 flights during the same period, also reflecting a 15 percent growth rate compared to the first six months of 2023. 

The Prince Mohammed Bin Abdulaziz International Airport recorded 5.6 million passengers in the first half of the year, reflecting a 20 percent rise compared to the corresponding period in 2023. The airport handled 39,000 flights during this period, up 22 percent from a year earlier.

Meanwhile, the Kingdom’s other airports combined recorded a total of 8.8 million passengers in the first six months, reflecting a 16 percent increase compared to the same period in 2023. The number of flights at these airports totaled 83,000, up 11 percent from the same timeframe in 2023. 

The 13th meeting of the Aviation Sector Strategy Activation Steering Committee, chaired by the President of the GACA, discussed recent advancements in strategy implementation and highlighted the sector’s record-breaking achievements and unprecedented milestones in the first half of 2024. 


Closing Bell: Saudi indexes end week in green, TASI closes at 11,792 

Updated 11 July 2024
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Closing Bell: Saudi indexes end week in green, TASI closes at 11,792 

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week in green, gaining 8.32 points, or 0.07 percent, to close at 11,792.41.   

The total trading turnover of the benchmark index was SR6.4 billion ($1.7 billion) as 104 of the listed stocks advanced, while 116 retreated.    

Similarly, the MSCI Tadawul Index also gained 0.52 points, or 0.04 percent, to close at 1,472.37.  

The Kingdom’s parallel market Nomu gained 259.34 points, or 1.02 percent, to close at 25,776.04. This came as 35 of the listed stocks advanced, while as many as 19 retreated.  

The best-performing stock of the day was Saudi Reinsurance Co., with the company’s share price surging 8.30 percent to SR30.65.   

Other top performers include Miahona Co. as well as Rasan Information Technology Co., whose share prices soared by 7.17 percent and 5.28 percent, to stand at SR33.65 and SR63.80 respectively.   

In addition to this, other top performers included Al Taiseer Group Talco Industrial Co. and MBC Group Co. 

The worst performer was Mouwasat Medical Services Co., whose share price dropped by 2.12 percent to SR120.    

Other fallers were Saudi Ground Services Co. as well as National Company for Learning and Education, whose share prices dropped by 1.89 percent and 1.76 percent to stand at SR51.90 and SR178.20, respectively.   

Al Kathiri Holding Co. and Batic Investments and Logistics Co. also saw falls.

In Nomu, Gas Arabian Services Co. was the top gainer with its share price rising by 6.12 percent to SR12.84.    

Other best performers in Nomu were Mohammed Hadi Al Rasheed and Partners Co. as well as Bena Steel Industries Co., whose share prices soared by 5.92 percent and 5.76 percent to stand at SR51.90 and SR33.95, respectively.   

Other top gainers also include Leaf Global Environmental Services Co. and MOBI Industry Co. 

Mayar Holding Co. was the major loser on Nomu, as the company’s share price dropped by 7.35 percent to SR3.15.    

The share prices of Ladun Investment Co. as well as Natural Gas Distribution Co. also fell by 6.95 percent and 3.59 percent to stand at SR3.08 and SR44.30, respectively.   

Other major droppers included Raoom Trading Co. and Arabian Plastic Industrial Co. 


Saudi Arabia listed as 2nd-best country for expats, survey says 

Updated 11 July 2024
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Saudi Arabia listed as 2nd-best country for expats, survey says 

RIYADH: Saudi Arabia’s transformational journey has placed it as the second-best country in the world for expats, outperforming the US, the UK, and Belgium, a new survey reveals. 

In the latest edition of the Expat Insider survey, the Kingdom came second to Denmark on the Working Abroad Index, with more than half of respondents in the country rating the local job market positively. 

This demonstrates Saudi Arabia’s continuous growth as it jumped from ranking in the 14th position in 2023. 

The index ranks countries based on four subcategories, including career prospects, salary and job security, work and leisure, and work culture and satisfaction. 

Factors include local job market, career opportunities, economic conditions and job security as well as pay fairness, working hours, work-life balance, and business culture. 

The Kingdom was ranked first in terms of career prospects, outperforming the US and UAE. 

The survey revealed that 75 percent of expats in Saudi Arabia are much more likely to agree that the move improved their career prospects, and 62 percent rate their personal career opportunities favorably. 

Furthermore, the survey showed that 82 percent are very much satisfied with the state of the local economy as the nation ranks second in the salary and job security subcategory. 

However, expats face long workdays with an average of 47.8 hours a week for full-time positions as opposed to 42.5 hours globally. 

This is also reflected in the ranking as the Kingdom receives its worst results in the index when it comes to expats’ working hours at 23rd place and work–life balance in 27th.   

“I like how there are work opportunities for highly skilled professionals,” one Spanish expat in Saudi Arabia said, the survey revealed. 

Moreover, the Kingdom was also in the top 10 countries in the Expat Essentials Index by Expat Insider. 

The Expat Essentials Index evaluates the ease of obtaining visas, dealing with local bureaucracy, and opening bank accounts as well as housing affordability and availability, digital life, including online services and internet access, and language ease, covering learning and living without the local language. 

Saudi Arabia was ranked 6th worldwide, surpassing nations like Singapore, Mexico, Indonesia, and Kenya. 

The indexes were conducted by the global expat community InterNations.