Startup of the Week – US-based SambaNova sets sights on Saudi market

SambaNova Systems is one of the latest artificial intelligence player to invest in the region.
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Updated 14 September 2024
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Startup of the Week – US-based SambaNova sets sights on Saudi market

CAIRO: Saudi Arabia’s potential as a global leader in artificial intelligence is drawing attention from major industry players, with SambaNova Systems being one of the latest to invest in the region.

The US-based, multi-billion-dollar AI solutions provider plans to deliver advanced infrastructure to support Saudi Arabia’s economic growth, aiming to position the Kingdom as a key hub for innovation and development.

The company specializes in providing advanced machine learning and AI solutions to enterprises.

SambaNova’s technology helps businesses accelerate adoption of the technology, improve decision-making, and drive operational efficiency across industries.

Marshall Choy, senior vice president of product at SambaNova Systems, highlighted the company’s intent to provide durable AI facilities that will fuel economic growth in the region, positioning Saudi Arabia as a key player in the industry.

“We are making a strategic investment in Saudi Arabia because the region — like the US — believes AI is a strategic imperative to fuel its economic growth and become a global hub for knowledge-based innovation,” Choy told Arab News.




Marshall Choy, senior vice president of product at SambaNova Systems. (Supplied)

He stated that AI is reshaping global dynamics and enabling businesses to gain a competitive edge by improving decision-making, reducing costs, and allowing companies to operate on-premise with enhanced data privacy.

A prosperous future

“Our goal is to provide durable AI infrastructure to promote the prosperous future of the Kingdom by deploying SambaNova Systems,” Choy added.

He also noted that collaboration with local Saudi organizations will be key in developing AI expertise in the region, stating that SambaNova aims to “help enable, through collaboration, durable model leadership to help establish the Kingdom’s leadership in the Middle East and North Africa.”

Choy also explained that the company’s expansion into Saudi Arabia will enable it to reach other Gulf countries.

Skill enablement, he said, will be another pillar of the partnership, achieved through structured training programs to foster deep expertise in AI engineering.

This expansion aligns with SambaNova’s broader strategic vision, which focuses on forming partnerships that support digital transformation for both government institutions and corporations. Choy noted that AI is increasingly essential for nearly every organization.

“Nearly every company needs to be an AI company. We believe AI is an asset, not a tool, and SambaNova delivers enterprise customers secure ownership of their models, as well as the ability to train them on their data, maximizing the value of their AI investment,” Choy said.

The senior vice president sees AI as an accelerant for productivity that will not only drive technology and business but societal and economic advancement.

Choy further emphasized the critical role of the Saudi government in the region’s AI expansion.

With the government’s $40- billion investment plan in the technology, there is strong support for the industry’s development.

“Having native sovereign AI capabilities in the Kingdom will enable that fast transition and acceleration from a technology and infrastructure perspective,” he added.

The company is also working with the Kingdom to build a strong infrastructure that will position the nation as a regional leader for the technology, Choy explained.

He highlighted that partnerships between government ministries, private enterprises, and providers like SambaNova will be fundamental to success, both at the national and corporate levels.

The company aims to be the number one AI provider in the Saudi market. Accordingly, SambaNova has partnered with the Kingdom’s largest company, Aramco.

The partnership saw SambaNova deploy systems on site for the energy giant, serving up AI capabilities for its internal intelligence system called Metabrain.

“Metabrain was a project where we co-developed an AI model trained on 90 years of Aramco historical data, this is a model that was completely built on SambaNova infrastructure,” Choy stated.

This model of collaboration has proven effective in other markets, and SambaNova expects the same success in Saudi Arabia.

Boosting the startup ecosystem

Beyond technological advancements, Choy stressed that AI would have a significant impact on the Kingdom’s growing startup ecosystem, fostering innovation and enabling businesses to scale.

“We see this as having a very profound impact on how the growing Saudi startup ecosystem is able to foster innovation and properly grow their businesses using state-of-the-art AI capabilities like SambaNova Suite,” Choy said.

The business environment in Saudi Arabia is also well-suited to SambaNova’s growth and innovation goals, according to the official.

He observed a “willingness and an appetite to engage, collaborate, and move forward quickly” in the Kingdom, fueled by the ambitious AI adoption and acceleration goals set by the Saudi government.

Looking to the future, SambaNova envisions further developments in its operations in the Kingdom, including co-designing with its Saudi partners to create more localized or regionalized solutions and capabilities specific for the domestic market.

“The people of Saudi Arabia are incredibly welcoming,” Choy said, adding: “I was thrilled to exchange ideas with people who are equally passionate about the possibilities of AI and how it will impact the way we all live and work.”

As SambaNova Systems continues to expand into Saudi Arabia, the company remains committed to its mission of helping the Kingdom achieve its long-term AI goals while contributing to the region’s broader digital transformation.


Kuwaiti-Japan trade surplus hits $543m

Updated 5 sec ago
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Kuwaiti-Japan trade surplus hits $543m

RIYADH: Kuwait’s trade surplus with Japan rose 15 percent year on year to 76.9 billion Japanese yen ($542.8 million) in August, official data showed. 

This marks the first increase in two months, driven by a surge in Kuwaiti exports to Japan, according to a preliminary report by the Japanese Ministry of Finance. 

The Gulf nation has maintained a trade surplus with Japan for 16 years and seven months. 

Kuwaiti exports to Japan grew by 11.8 percent in August to 98.4 billion yen, rebounding after two months of declines. Meanwhile, Kuwaiti imports from Japan rose for the fourth consecutive month, increasing by 1.9 percent to 21.5 billion yen. 

In contrast, the Middle East’s overall trade surplus with Japan fell by 4.8 percent to 852.2 billion yen in August, as exports from the region dropped by 1 percent compared to the previous year. 

Shipments of oil, refined products, liquefied natural gas, and other natural resources, which account for 94.7 percent of the region’s exports to Japan, declined by 2.3 percent. 

Imports from Japan to the Middle East, however, rose by 12.8 percent, driven by higher demand for cars and machinery. 

Japan, the world’s third-largest economy, recorded a trade deficit for the second consecutive month in August, totaling 695.3 billion yen. This was influenced by the ongoing depreciation of the yen, which has continued to push up the cost of imports. 

Japan’s exports rose 5.6 percent, supported by shipments of semiconductor manufacturing equipment, while imports increased by 2.3 percent, fueled by rising costs of pharmaceuticals and petroleum products, exacerbated by the weaker yen against the dollar. 

In the energy sector, Japan imported 62.54 million barrels of oil in June, with 96.3 percent or 60.26 million barrels, sourced from the Arab region, as reported by the Agency of Natural Resources and Energy of Japan’s Ministry of Economy, Trade, and Industry in July. 

Saudi Arabia and the UAE dominated Japan’s oil imports, with Saudi Arabia contributing 25.82 million barrels, representing 41.3 percent of the total, and the UAE providing almost the same share with 25.84 million barrels. 

Kuwait was a significant contributor to Japan’s oil imports in June, supplying 5.21 million barrels, or 8.3 percent of the total. 

Other key suppliers included Qatar, with 2.44 million barrels, accounting for 3.9 percent, and Oman, with about half a million barrels, making up 0.8 percent. 

With Japan continuing its ban on importing oil from Iran and Russia in June, the remaining shipments of the fuel were sourced from the US at 1.4 percent, Central and South America at 1.6 percent, Southeast Asia at 0.5 percent, and Oceania at 0.2 percent. 

China remains Japan’s largest trading partner, followed by the US. 


Transport, furniture sectors lead spending as food tops Saudi POS transactions

Updated 15 min 11 sec ago
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Transport, furniture sectors lead spending as food tops Saudi POS transactions

RIYADH: Furniture and transport spending in Saudi Arabia registered the highest weekly point-of-sales increases from Sept. 8 to 14, according to central bank data.

The weekly bulletin released by the bank, also known as SAMA, revealed that spending on furniture rose to SR314.3 million ($83.74 million), marking a 1.6 percent increase for the week, while expenditure on transportation came in at SR767.6 million – up 1.3 percent on the previous seven days.

The food and beverages sector preserved the biggest share of the POS data at SR1.84 billion, followed by restaurants and cafes at SR1.80 billion and miscellaneous goods and services at 1.46 billion.

Spending in the top three largest categories accounted for SR5.1 billion out of this week’s total value.

The overall value of the POS dipped for the second week in a row, dropping by 8.6 percent compared to the previous week to reach SR12.2 billion.

The latest figures showed that spending in the education sector continued to lead the dip, recording the highest decrease at 43.3 percent, with total transactions reaching SR165 million.

This week marks one month of constant declines in the education sector, after surging for four consecutive weeks, coinciding with the start of the academic year on August 18.

During the first week of September, spending on telecommunication saw the second-largest decline at 18.7 percent to SR98.2 million.

Spending on culture and recreation recorded the third biggest dip with a 15.9 percent negative change, reaching SR246.7 million. 

Expenditure on construction materials and electronic devices recorded the smallest decline at 0.4 percent each, reaching SR348.5 million and SR208.8 million, respectively.

Geographically, Riyadh dominated POS transactions, representing 34.8 percent of the total, with spending in the capital reaching SR4.2 billion — a 6.7 percent decrease from the previous week. 

Jeddah followed with a 6.8 percent decline to SR1.7 billion, accounting for 13.9 percent of the total, and Dammam came in third at SR620.4 million, down 6.3 percent.

Abha saw the largest decrease in spending, down by 13.1 percent to SR152.4 million. Tabuk and Hail also experienced downsticks, with expenditure dipping 13 percent and 11.7 percent to SR230.5 million and SR189.2 million, respectively. 

In terms of the number of transactions, Abha recorded the highest decrease at 4.6 percent, reaching 3,195. Khobar recorded the smallest decrease at 2 percent, reaching 4,373 transactions.


Oil prices set to snap two-day winning streak ahead of Fed decision

Updated 18 September 2024
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Oil prices set to snap two-day winning streak ahead of Fed decision

TOKYO: Oil prices fell on Wednesday after two sessions of gains, as weak macroeconomic data weighed on demand, offsetting the possible disruption of violence in the Middle East and the potentially bullish impact of an expected US rates cut.

Brent crude futures for November were down 49 cents, or 0.7 percent, at $73.21 a barrel, as of 9:43 a.m. Saudi time. US crude futures for October slid 50 cents, or 0.7 percent, to $70.69 a barrel.

“Weak macroeconomic data are deepening oil demand concerns. Money managers have turned net negative for the first time since 2011. End of the peak summer demand is also weighing on the market sentiment,” analysts at ANZ said in a note.

Prices found some support from the risk increased violence in the oil-producing Middle East could disrupt supply after Israel allegedly attacked militant group Hezbollah with explosive-laden pagers in Lebanon.

“Investors are focusing on Fed’s likely rate cuts, which could revitalize US fuel demand and weaken the dollar,” said Mitsuru Muraishi, an analyst at Fujitomi Securities.

Traders kept bets that the Fed will start an anticipated series of interest rate reduction with a half-percentage-point move downward on Wednesday, an expectation that may put pressure on central bankers to deliver that.

Hezbollah promised to retaliate against Israel after the pagers detonated across Lebanon on Tuesday, killing at least eight people and wounding nearly 3,000 others, including fighters and Iran’s envoy to Beirut.

The market found further support from the expectation of US oil purchases for the Strategic Petroleum Reserve.

Analysts polled by Reuters estimated on average that crude inventories fell by about 500,000 barrels last week. The US Energy Information Administration’s report is due on Wednesday at 5:30 p.m. Saudi time. 


Saudi Arabia sees 14.6% rise in container traffic in 2023: GASTAT 

Updated 18 September 2024
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Saudi Arabia sees 14.6% rise in container traffic in 2023: GASTAT 

RIYADH: Saudi Arabia’s ports saw a 14.6 percent increase in both inbound and outbound container traffic in 2023 compared to the previous year, official data showed. 

According to the General Authority for Statistics, inbound container traffic at the Kingdom’s ports reached 3.4 million twenty-foot equivalent units in 2023, while outbound traffic totaled 2.2 million TEUs. 

The report revealed that the quantity of outbound cargo amounted to 203.5 million tonnes in 2023, a strong indication of the Kingdom’s rising exports. King Fahad Industrial Port in Yanbu handled the largest volume of outbound cargo, totaling 89.8 million tonnes. 

Boosting exports, particularly non-oil goods, is crucial for Saudi Arabia as it continues its economic diversification efforts aimed at reducing its dependency on oil revenues. 

The quantity of inbound cargo reached 105.1 million tonnes in 2023, with Jeddah Islamic Port managing the largest share, handling 38.9 million tonnes of imports. 

GASTAT also noted a 33.8 percent rise in ship traffic at Saudi ports in 2023 compared to the previous year. 

“The total ship traffic at Saudi ports was 19,082 ships. King Fahad Industrial Port in Yanbu had the highest ship traffic, with 6,538 ships, followed by Jeddah Islamic Port with 4,411 ships, and King Abdulaziz Port in Dammam with 2,516 ships,” stated GASTAT.  

Total cargo handled at the Kingdom’s ports in 2023 amounted to 334 million tonnes, with 121.3 million tonnes of unloaded cargo and 213 million tonnes of loaded cargo.  

Jeddah Islamic Port recorded the highest unloaded cargo volume at 38.9 million tonnes, while King Fahad Industrial Port in Yanbu had the highest loaded cargo volume at 89.8 million tonnes. 

Passenger traffic at the Kingdom’s ports also rose by 11.5 percent in 2023, with over 1 million travelers arriving and departing. Jazan Port handled the largest number of passengers, totaling 484,598. 

The report highlighted that the number of cranes at Saudi ports reached 989 in 2023, and the total area of the Kingdom’s ports covered 104 sq. km, with Ras Al Khair Port being the largest at 23 sq. km. 


Saudi Arabia raises $690m in sukuk issuances in August

Updated 17 September 2024
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Saudi Arabia raises $690m in sukuk issuances in August

  • In August, the Kingdom issued sukuk worth SR6.01 billion
  • September issuance was divided into six tranches

RIYADH: Saudi Arabia’s National Debt Management Center has completed its riyal-denominated sukuk issuance for September at SR2.603 billion ($690 million). 

In August, the Kingdom issued sukuk worth SR6.01 billion, up from SR3.21 billion and SR4.4 billion in July and June, respectively.

The decline in sukuk issuances falls in line with a report released by American credit rating agency Fitch Ratings in August, which said that issuances are expected to slow down in the third quarter before picking up later in the year on the back of lower interest rates and oil prices. 

Sukuk, also known as Islamic bonds, are a Shariah-compliant debt product through which investors gain partial ownership of an issuer’s assets until maturity.

Establishing an unlimited riyal-denominated Islamic bond initiative under the NDMC is part of the Kingdom’s Sukuk Issuance Program, which started in 2017.

According to a statement released by NDMC, the September issuance was divided into six tranches. 

The first tranche was valued at SR255 million and is set to mature in 2027, while the second amounted to SR375 million, maturing in 2029.

The third tranche’s value stood at SR638 million, maturing in 2031, and the fourth was valued at SR1.02 billion, with a maturity date in 2034.

The fifth tranche had a size of SR202 million, maturing in 2036, followed by a sixth tranche valued at SR112 million due in 2039.

Earlier this month, another report released by global credit rating agency Moody’s said that the global sukuk market is poised for a strong performance in 2024, with issuance volumes expected to surpass those of 2023 despite a slowdown in the year’s second half.

According to the US-based firm, the issuance of Shariah-compliant bonds could reach between $200 billion and $210 billion this year, up from just under $200 billion in 2023.

The report said the growth is being fueled by robust sovereign issuance across the Gulf Cooperation Council and Southeast Asia, with Saudi Arabia playing a leading role.