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

An aerial view of the King Abdullah University of Science and Technology in Thuwal is shown nin this photo posted on KAUST’s Facebook account. (Photo courtesy of KAUST)
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Updated 20 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. 

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 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.”
 

 


Saudi economy expands 1.3% in 2024 amid non-oil growth

Updated 09 March 2025
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Saudi economy expands 1.3% in 2024 amid non-oil growth

RIYADH: Saudi Arabia’s economy grew 1.3 percent in 2024, supported by an expansion in non-oil activities despite a decline in the oil sector, according to data from the General Authority for Statistics.

Growth accelerated in the fourth quarter of 2024, with gross domestic product expanding 4.5 percent year on year — the highest quarterly increase in two years — supported by a 4.7 percent rise in non-oil activities and a 3.4 percent uptick in oil activities. 

However, oil sector’s output declined 1.5 percent compared to the third quarter.

These figures align with GASTAT’s January real GDP projections, which estimated 4.4 percent annual growth in the fourth quarter of 2024. Flash estimates at the time indicated that the Kingdom’s non-oil activities grew 4.6 percent year on year in the three months leading up to December, reflecting ongoing economic diversification efforts.

The wholesale and retail trade, restaurants, and hotels sector led annual growth among economic activities, rising 6.4 percent, followed by financial services, insurance, and business services at 5.7 percent. 

Electricity, gas, and water activities increased 4.9 percent, while transport, storage, and communication, along with other mining and quarrying activities, grew 4.5 percent. Crude oil and natural gas activities declined 6.4 percent.

At current prices, Saudi Arabia’s GDP reached SR4.07 trillion ($1.09 trillion) in 2024, with crude oil and natural gas contributing 22.3 percent, government activities 16.2 percent, and wholesale and retail trade, restaurants, and hotels accounting for 10.3 percent. 

Manufacturing, excluding petroleum refining, made up 9.1 percent, while real estate activities comprised 6.5 percent.

In the fourth quarter, petroleum refining saw the highest growth among economic activities, surging 15.3 percent year on year, despite a 2.2 percent quarter-over-quarter decline. Electricity, gas, and water activities grew 7.4 percent annually and 2.7 percent quarterly, while other mining and quarrying activities expanded 7 percent year on year and 3.4 percent quarter on quarter.

By expenditure components, private final consumption rose 3.9 percent annually and 0.3 percent quarterly. However, gross fixed capital formation declined 2.2 percent year on year and 4.6 percent quarter over quarter, while government final consumption expenditure dropped 6.6 percent and 6.4 percent, respectively. 

Exports increased 5.2 percent annually and 6.9 percent quarterly, while imports rose 11.5 percent and 7.8 percent.

At current prices, Saudi Arabia’s GDP for the fourth quarter stood at SR1.025 trillion, with crude oil and natural gas activities contributing 19.7 percent, government activities 16.7 percent, and wholesale and retail trade, restaurants, and hotels 10.6 percent. 

Manufacturing, excluding petroleum refining, accounted for 9.2 percent.

Saudi Arabia’s economic performance underscores its ongoing diversification push, with non-oil sectors playing a key role in mitigating the impact of oil sector volatility.


Saudi Arabia’s Tadawul dominates Arab exchanges with 62% market share in 2024

Updated 09 March 2025
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Saudi Arabia’s Tadawul dominates Arab exchanges with 62% market share in 2024

  • Arab stock exchanges saw strong growth in 2024, with total trading values rising by 58.1% to surpass $1.03 trillion

RIYADH: Saudi Arabia’s Tadawul reinforced its position as the Arab world’s leading stock exchange, accounting for 62 percent of the total market capitalization of regional platforms in 2024.

A recent report by the Arab Federation of Capital Markets said Tadawul’s market capitalization overshadowed other regional exchanges, with the Abu Dhabi Securities Exchange following at a distant 18.6 percent.

The Dubai Financial Market, with a share of 5.6 percent, the Qatar Stock Exchange at 3.9 percent, and Boursa Kuwait, holding 3.2 percent, rounded out the top five.

This dominance comes amid strong performance in the Saudi market, leading the region with the highest turnover ratio of 247.1 percent.

The trading value at Tadawul reached $496.6 billion, significantly outpacing other markets.

The Arab Federation of Capital Markets achieved an 84.4 percent increase in total revenues, from $689,503 in 2023 to $1.2 million in 2024. 
The FTSE-AFCM Low Carbon Select Index rose 4.9 percent in 2024, indicating increased investor interest in low-carbon companies.

Iraq Stock Exchange’s ISX60 index experienced a 20.2 percent surge in 2024 to 1,074 points, while Muscat Stock Exchange’s MSX30 index saw a 1.4 percent increase to 4,577 points. 

Abu Dhabi Securities Exchange’s FADGI index witnessed a 1.7 percent decline to 9,419 points, and QSE’s QE index dipped by 2.4 percent in 2024 to 10,571 points.

Arab stock exchanges saw strong growth in 2024, with total trading values rising by 58.1 percent to surpass $1.03 trillion. The Egyptian Exchange led the way with a substantial 210.3 percent increase in trading value, reaching $324.4 billion. 

Other exchanges also saw positive results, such as the Casablanca Stock Exchange, which grew by 55.2 percent, and the Damascus Stock Exchange, which saw a 163.3 percent increase. 

Some platforms, including the Palestine Exchange, which saw a 56.4 percent decline in trading value, faced challenges. 

Overall, trading volumes across the region grew by 21.3 percent, and the number of trades increased by 35.9 percent, reflecting a dynamic financial landscape with varying performances across different markets.

The S&P Pan Arab Composite Index rose by 1.9 percent year-on-year in December, while the Amman Stock Exchange index posted a modest 2.4 percent growth. The Casablanca market saw its MASI index jump by 22.2 percent, demonstrating strong performance in the Moroccan market. 

The Damascus Stock Exchange index registered the largest increase at 65.7 percent, and the Saudi Exchange index saw the smallest growth at 0.6 percent during this period.


Closing Bell: Tadawul rises on positive trading day, Nomu follows suit

Updated 09 March 2025
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Closing Bell: Tadawul rises on positive trading day, Nomu follows suit

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 25.41 points, or 0.22 percent, to close at 11,836.52.

The total trading turnover of the benchmark index was SR3.95 billion ($1.05 billion), with 46 stocks advancing and 182 retreating.

The Kingdom’s parallel market, Nomu, also gained 35.09 points, or 0.11 percent, to close at 31,331.82, as 18 stocks advanced while 40 retreated.

The MSCI Tadawul Index also gained 4.40 points, or 0.30 percent, to close at 1,494.48.

The best-performing stock of the day was Dar Alarkan Real Estate Development Co., whose share price rose 7.48 percent to SR18.40.

Other top performers included Dallah Healthcare Co., whose share price rose 6.83 percent to SR131.40, and Bupa Arabia for Cooperative Insurance Co., whose share price surged 4.78 percent to SR171.

Kingdom Holding Co. recorded the most significant drop, falling 9.94 percent to SR7.70.

Arabian Shield Cooperative Insurance Co. also saw its stock prices fall 7.48 percent to SR17.82.

Batic Investments and Logistics Co. saw its stock prices decline by 7 percent to SR2.79.

On the announcements front, the Saudi Exchange announced the listing and trading of shares of Derayah Financial Co. on the main market starting March 10, with +/- 30 percent daily price fluctuation limits and +/- 10 percent static price fluctuation limits.

According to a Tadawul statement, these fluctuation limits will apply during the first three days of listing, and from the fourth trading day onwards, the daily price fluctuation limits will revert to +/- 10 percent, while the static price fluctuation limits will no longer apply.

The statement further revealed that Derayah Financial Co. will have the symbol 4084 and ISIN Code SA1690F1VQ15.

Lazurde Company for Jewelry announced its annual financial results for the year ended Dec. 31. A bourse filing revealed that the firm reported a net profit of SR11.7 million in 2024, reflecting a 62.01 percent drop compared to 2023.

This decrease in net profit is primarily attributed to one-off expenses totaling SR10.2 million related to the cost of changing the company’s distributor in the Gulf Cooperation Council and a provision for a legal dispute. In 2023, there was a one-off gain of SR10.1 million from the sales of an administrative office in the UAE.

The company ended the session at SR13.08, down 3.63 percent.

Fourth Milling Co. also announced its annual financial results for the year ended Dec. 31. According to a Tadawul statement, the company reported a net profit of SR170 million in 2024, reflecting a 19.68 percent surge compared to 2023. This jump is linked to a 12.7 percent rise in revenue and enhanced operational and production efficiency, which improved profit margins.

Fourth Milling Co. ended the session at SR4.05, up 0.25 percent.


Qatar’s international reserves climb 3.81% to $70.29bn in February

Updated 09 March 2025
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Qatar’s international reserves climb 3.81% to $70.29bn in February

RIYADH: Qatar’s international reserves and foreign currency liquidity rose 3.81 percent in February, reaching 255.916 billion Qatari riyals ($70.29 billion), up from 246.509 billion riyals in the same month last year.  

According to the latest data from the Qatar Central Bank, official reserves increased by 9.218 billion riyals, totaling 196.817 billion riyals at the end of February, despite a 13.175 billion riyal decline in foreign bonds and Treasury bills holdings, which stood at 125.790 billion riyals, Qatar News Agency reported.  

Official reserves comprise several components, including foreign bonds and treasury bills, cash balances with foreign banks, gold holdings, Special Drawing Rights, and Qatar’s quota at the International Monetary Fund. 

In addition, the central bank’s total international reserves include other liquid assets in foreign currency deposits. 

The figures reflect continued growth in Qatar’s international reserves, highlighting the country’s financial stability despite fluctuations in global markets. 

Gold reserves saw a significant uptick, rising by 13.85 billion riyals to 38.263 billion riyals. Cash balances with foreign banks increased by 8.63 billion riyals, reaching 27.67 billion riyals. Conversely, SDR deposits at the International Monetary Fund decreased by 98 million riyals, totaling 5.09 billion riyals.    

Qatar recorded a budget surplus of 900 million riyals in the fourth quarter of 2024, up from 100 million riyals in the previous quarter. 

In January, the Ministry of Finance stated on its X account that the surplus would be used to reduce public debt. It added that total expenditures for the quarter stood at 47.8 billion riyals, a 12 percent year-on-year decline, while revenues totaled 48.7 billion riyals, reflecting a 12.5 percent drop.  

The health, municipal and environment, general secretariat, and energy sectors ranked as the top-performing areas during the quarter, according to the Sector Performance Index. 

Qatar’s fiscal performance aligns with other Gulf Cooperation Council nations, such as Oman, which recorded a 6.2 percent budget surplus in 2024.  

This reflects the IMF’s December review, which highlighted the region’s resilience amid oil production cuts, supported by diversification efforts and economic reforms.  

Qatar’s real gross domestic product is expected to grow by 2 percent in 2024-25, driven by public investment, liquefied natural gas spillovers, and a robust tourism sector, according to the IMF.

It projected the Gulf nation’s medium-term growth to average 4.75 percent, fueled by a significant expansion in LNG production and the early impact of reforms under the Third National Development Strategy.


Fitch affirms Kuwait’s rating at AA-, outlook stable

Updated 09 March 2025
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Fitch affirms Kuwait’s rating at AA-, outlook stable

  • Assets projected to rise to 601% of GDP this year from an estimated 582% in 2024
  • Government planning to introduce long-delayed excise tax in fiscal year ending March 2026

RIYADH: Fitch Ratings has reaffirmed Kuwait’s Long-Term Foreign-Currency Issuer Default Rating at AA-, with a stable outlook due to the country’s strong fiscal position and external financial consistency. 

The US-based agency said Kuwait’s external balance sheet remains the strongest of all Fitch-rated sovereigns, with the nation’s net foreign assets projected to rise to 601 percent of the gross domestic product this year from an estimated 582 percent in 2024. 

According to Fitch, an AA- ranking indicates expectations of very low credit risk and a strong capacity for payment of financial commitments. 

Kuwait’s strong rating aligns with the broader trend in the Middle East region, where countries steadily diversify their economies by reducing their dependence on crude revenues. 

In February, Fitch Ratings affirmed Saudi Arabia’s IDR at A+ with a stable outlook, while the UAE was rated AA-. 

The Kingdom’s A+ ranking indicates Saudi Arabia’s strong capacity to pay financial commitments while signifying low default risk. 

“The recently-appointed government has initiated reforms aimed at reducing reliance on oil revenue, improving government efficiency, and rationalizing spending, capping it at 24.5 billion dinars ($79.53 billion), accounting for about 51 percent of GDP,” said Fitch Ratings. 

The report further said that the Kuwaiti government’s introduction of a 15 percent domestic minimum top-up tax on multinational companies came into effect on Jan. 1. It is expected to generate about 0.5 percent of GDP, amounting to 250 million dinars annually, with collections expected to commence by 2027. 

The government is also planning to introduce the long-delayed excise tax in the fiscal year ending March 2026. 

“Fitch views the pick-up in reform efforts as positive. However, a significant overhaul of generous public wages and welfare spending (79 percent of total expenditure; 40 percent of GDP) is unlikely in the short term, given the state’s deep-rooted generosity toward Kuwaiti citizens and still favorable oil prices,” the analysis added. 

The Kuwaiti government is also planning to pass a liquidity/debt law, which will enable the country to raise new debt. 

The agency said even without a liquidity law, the government would still be able to meet its financing obligations in the coming years, given the substantial assets at its disposal.

Kuwait’s overall revenue is expected to decline in the financial year 2025 due to oil revenue loss from lower crude prices as OPEC+ continues production cuts to maintain market stability, according to Fitch.

The country’s non-oil revenues are expected to grow modestly in the financial year but fall short of the government’s target of 2.9 billion dinars. 

The study further said that the Kuwait government’s debt to GDP rose to 6 percent in FY25 and 9.2 percent in FY26, despite a $4.5 billion Eurobond maturing in March 2027. 

The report also outlined some constraints that affected Kuwait’s rating, including the country’s weaker governance than peers, heavy dependence on oil, and its generous welfare system and large public sector, which could result in long-term fiscal pressure. 

“Prospects remain unclear for meaningful fiscal adjustment to address long-term challenges and legislation to allow debt issuance and improve fiscal financing flexibility, although there are emerging signs of progress,” said Fitch.