Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments

AI could contribute an estimated $135 billion to the Kingdom’s economy by 2030, accounting for over 12 percent of the country’s projected gross domestic product. Shutterstock
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Updated 27 October 2024
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Saudi Aramco’s Wa’ed Ventures earmarks $100m for AI investments

RIYADH: Saudi Arabia’s $500 million venture capital fund, Wa’ed Ventures, a wholly-owned subsidiary of Aramco, has earmarked $100 million to invest in artificial intelligence startups. 

The initiative aligns with the Kingdom’s ambition to position itself as a global AI hub and drive economic growth through technology-driven innovation. 

Wa’ed Ventures has also established an advisory board comprised of prominent leaders in the AI sector to facilitate deal sourcing and support the localization of global talent. 

The board members bring expertise from diverse fields, including policymaking, research and academia, as well as entrepreneurship, with backgrounds from major institutions like Meta, Amazon, The Massachusetts Institute of Technology, and Oxford. 

The advisory board is expected to guide Wa’ed in identifying high-potential AI investments and accelerate the integration of advanced technologies within the Kingdom. 

“Our strategic decision to allocate funds to AI investments is rooted in a deep understanding of the Kingdom’s growing ecosystem,” said Anas Al-Gahtani, acting CEO of Wa’ed Ventures. 

“By fostering innovation and supporting AI startups, we aim to accelerate the development of cutting-edge technologies that will drive economic growth, improve quality of life, and position Saudi Arabia as a global leader in artificial intelligence. This investment will not only incentivize local entrepreneurs but also support the localization of global talent, ultimately unlocking the immense potential of AI,” Al-Gahtani added. 

The investment strategy comes as Saudi Arabia’s AI market is projected to see a substantial economic impact over the next decade. 

According to a report by PwC, AI could contribute an estimated $135 billion to the Kingdom’s economy by 2030, accounting for over 12 percent of the country’s projected gross domestic product. This would position the technology as one of the nation’s most significant economic drivers. 

Wa’ed Ventures has already begun executing its AI investment strategy with recent stakes in innovative companies such as Korea’s AI chipmaker Rebellions and the California-based aiXplain, which specializes in essential infrastructure for accelerated development. 

These investments underscore Wa’ed Ventures’ commitment to advancing the Kingdom’s AI ecosystem by supporting high-potential technology companies and infrastructure players within the field. 

A recent study by McKinsey & Co. indicates that AI technologies are likely to contribute more than $13 trillion to the global economy by 2030, and Saudi Arabia has the potential to capture a considerable share of this growth. 

Established in 2013, Wa’ed Ventures manages a portfolio of over 70 startups, providing end-to-end support, from funding to providing access to partner resources. 


Global Proptech Summit in Riyadh kicks off with launch of new center

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Global Proptech Summit in Riyadh kicks off with launch of new center

  • The event also saw the announcement of several partnerships
  • National Housing Co. and AlRajhi Takaful\ inked a pact to provide digital insurance products for residential units that are rented

RIYADH: Saudi Arabia’s global property technology summit commenced with the launch of a new center to boost the sector’s performance. 

Held in Riyadh from Oct. 27-28, the event’s opening featured several announcements, including the inauguration of the Saudi Proptech Center Sph, an initiative set to bolster innovation in the industry. 

During his opening speech, Abdullah Al-Hammad, CEO of Real Estate General Authority, announced the launch of the initiative, emphasizing its importance. 

“Today, we launch the Saudi Proptech Center Sph, to be an essential channel for innovation in real estate technologies and a major engine that drives all technical innovations, strategies, and development in the real estate sector,” Al-Hammad said. 

“This global proptech summit comes as one of the most important initiatives of the Saudi Proptech Center Sph to bring together the most prominent experiences, major investors, venture capitalists that embrace inspiring ideas, entrepreneurs, and emerging companies in the field of real estate technologies,” he added. 

Saudi Arabia’s Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail also highlighted the Kingdom’s goal to establish Riyadh as a global center for property technology at the summit’s opening. 

Al-Hogail pointed to the nation’s commitment to advancing the real estate sector by leveraging digital solutions to enhance regulatory frameworks, expand investment opportunities, and drive economic growth through technology. 

He said that digital transformation is a core component of Saudi Arabia’s Vision 2030, aimed at improving the quality of life for citizens, residents, and visitors while also enhancing service efficiency. 

Al-Hogail outlined how the integration of advanced technologies, such as artificial intelligence, the Internet of Things, and big data, is projected to create smarter and more sustainable urban environments. 

This technological push, he explained, is expected to attract investment, particularly in real estate platforms, brokerage services, and financing, which could facilitate transactions and promote market transparency. 

Al-Hammad also emphasized the role of investment in boosting the overall sector. “Investing and using technologies and real estate technology is an imperative necessity to keep pace with global developments and ensure the provision of the best services. The future belongs to those who invest in technology and harness it in the service of humanity,” he said. 

“We believe that technology is one of the most important tools that will lead the real estate sector to growth and sustainability, raise its efficiency and effectiveness, and enhance its role in diversifying non-oil sources of income,” he added. 

Al-Hammad said that real estate technology has a broad horizon, and its growth supports all strategies of scientific research, innovation, digital transformation strategies, and information technology as well as developing real estate legislation and systems. 

The event also saw the announcement of several partnerships. A cooperation agreement was signed between the Real Estate General Authority and the National Program for the Development of Information Technology. The deal aims to adopt international best practices in the sector. 

National Housing Co. and AlRajhi Takaful also inked a pact to provide digital insurance products for residential units that are rented. 

A cooperation agreement between the NHC and Malath Insurance, which aims to provide digital insurance services for rental housing units, was also announced during the event.


Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive

Updated 27 October 2024
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Saudi Arabia opens Sindalah in NEOM as part of Vision 2030 tourism drive

RIYADH: Saudi Arabia has unveiled its luxury island destination, Sindalah, part of the $500-billion NEOM mega-project, as the Kingdom intensifies efforts to expand its tourism sector. 

NEOM announced that the project, developed over two years with the involvement of four local contractors and 60 subcontractors, has welcomed its first guests, signaling a new era of high-end tourism in Saudi Arabia, according to a press release. 

Such giga-projects are central to Saudi Arabia’s strategy for economic diversification, aligning with the Kingdom’s Vision 2030 tourism goals. The National Tourism Strategy aims to draw 150 million visitors by 2030 and increase tourism’s contribution to gross domestic product from 6 percent to 10 percent. 

“NEOM is committed to supporting the Kingdom’s new era of luxury tourism, with the opening of Sindalah. The realization of this landmark destination, the gateway to the Red Sea, is due to the visionary leadership of His Royal Highness Mohammed bin Salman and Saudi Vision 2030,” said Nadhmi Al-Nasr, CEO of NEOM.  

He added: “NEOM’s inaugural destination offers visitors a ‘first glimpse’ of what the future holds for our extensive portfolio of destinations and developments.”  

Located 5 km off NEOM’s northwest coast, Sindalah spans 840,000 sq. meters and is set to welcome up to 2,400 guests daily by 2028, creating 3,500 jobs and driving growth in Saudi Arabia’s hospitality and tourism sectors. 

Sindalah’s waters are home to 1,100 fish species, including 45 unique to NEOM, and over 300 coral species.  

“In line with NEOM’s commitment to sustainability and conservation, preservation of Sindalah’s natural marine habitat has been central to the island’s development, and guests are invited to dive beneath the surface to explore its wonders for themselves,” stated NEOM.  

The destination will feature a yacht club, beach club, and golf club, as well as docking facilities, additional offshore buoys for super yachts, and comprehensive yacht management services. 

Sindalah offers 440 rooms, 88 villas, and 218 luxury serviced apartments for accommodation. NEOM stated that booking information will be released soon through its tourism channels. 


Closing Bell: Saudi benchmark index up 1.54% to close at 12,068

Updated 27 October 2024
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Closing Bell: Saudi benchmark index up 1.54% to close at 12,068

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 182.91 points, or 1.54 percent, to close at 12,068.97.

The benchmark index recorded a total trading turnover of SR5.48 billion ($1.45 billion), with 213 stocks advancing and 19 declining.

The Kingdom’s parallel market, Nomu, also saw gains, rising 98.65 points, or 0.37 percent, to close at 26,916.94, as 32 of the listed stocks increased while 40 fell.

In contrast, the MSCI Tadawul Index dropped 22.67 points, or 1.52 percent, finishing at 1,517.57.

The top performer of the day was Miahona Co., whose shares surged by 9.86 percent to SR28.40. Other notable gainers included CHUBB Arabia Cooperative Insurance Co. and Saudi Manpower Solutions Co., with share prices rising 7.83 percent and 7.26 percent to SR48.90 and SR8.57, respectively.

On the downside, Al-Baha Investment and Development Co. was the worst performer, with its share price dropping 7.14 percent to SR0.26. Emaar The Economic City and City Cement Co. also saw declines, with their share prices falling by 7.14 percent and 1.85 percent to SR8.51 and SR17.74, respectively.

On the announcements front, Etihad Etisalat Co. — Mobily — announced its consolidated interim financial results for the period ending Sept. 30.

According to a Tadawul statement, the company recorded a net profit of SR2.12 billion for the first nine months of the year, reflecting a 43.13 percent increase compared to the same period in 2023.

This growth was primarily driven by a 5.7 percent rise in gross profit and an 8.2 percent increase in EBITDA, alongside a 24 percent rise in operating profit.

Additionally, financial charges decreased by 9.2 percent, while zakat and income tax increased. Mobily’s shares ended the session at SR52.20, up 2.16 percent.

Al-Rajhi Bank also reported its interim financial results for the period ending Sept. 30, showing a net profit of SR14.6 billion for the first nine months of 2024, a 14.09 percent rise compared to the same period in 2023. This increase was attributed to a 13.8 percent growth in total operating income, driven by higher net financing and investment income, fees from banking services, and exchange income. However, total operating expenses, including impairment charges, rose by 13.4 percent due to increased depreciation and employee-related benefits, despite a decline in other administrative expenses. The bank’s shares closed at SR87, up 1.88 percent.

National Industrialization Co. reported a net profit of SR69.8 million for the first nine months of 2024, marking a 63.5 percent decline compared to the same period in 2023.

This drop was mainly due to lower average selling prices for certain products, increased costs of sales, and a reduced share of profits from joint ventures. Despite an increase in revenue from higher sales volumes, the company ended the session at SR10.64, up 1.9 percent.

Jamjoom Pharmaceuticals Factory Co. announced a net profit of SR304.9 million for the first nine months of 2024, reflecting a 22.9 percent increase year on year, driven by revenue growth and operational efficiencies. The company’s shares closed at SR166, down 1.21 percent.

Lastly, Sabic Agri-Nutrients Co. reported a net profit of SR2.3 billion for the first nine months of 2024, a decrease of 11.4 percent compared to the same period in 2023. This decline was attributed to lower average selling prices and increased costs of goods sold. The company’s shares ended the session at SR116.60, up 1.55 percent.


BRICS leaders call for urgent action to address land degradation, desertification, drought

Updated 27 October 2024
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BRICS leaders call for urgent action to address land degradation, desertification, drought

RIYADH: BRICS leaders are calling for increased financial resources and stronger partnerships to address land degradation, desertification, and drought ahead of a UN environment conference in Saudi Arabia in December.

This comes as the leaders of Brazil, Russia, India, and China, as well as South Africa, Egypt, Ethiopia, Iran, and the UAE, have issued a joint statement emphasizing that these environmental challenges “are posing serious threats to the well-being and livelihoods of people and the environment.”

In the statement, the BRICS leaders acknowledged ongoing efforts in sustainable land management while stressing the need for “integrated policies” to tackle these interconnected issues.

The statement comes as the Kingdom prepares to host the 16th session of the UN Convention to Combat Desertification, or UNCCD COP16, in Riyadh from Dec. 2 — 13, amid growing global concern over land degradation that already affects 40 percent of the planet and impacts 3.2 billion people, according to UNCCD data. 

The initiative aligns with the UNCCD’s objective to restore 1.5 billion hectares of damaged land by 2030. As per the UNCCD, each dollar put into land restoration has the potential to generate up to $30 in economic benefits.

“Saudi Arabia welcomes the BRICS leaders’ statement on the critical issue of land degradation as it reflects the increasing urgency to slow and ultimately reverse the trend of degrading land worldwide,” Deputy Minister for Environment at the Kingdom’s Ministry of Environment, Water and Agriculture, and Adviser to the COP16 Presidency Osama Faqeeha said. 

“At COP16 in Riyadh, we will work to forge new partnerships that can accelerate land restoration and drought resilience efforts, particularly in vulnerable regions. Land degradation, drought and desertification impact almost every corner of the planet, exacerbating forced migration and worsening global food and water insecurity. It is imperative the international community address the root causes of these issues at the UNCCD COP16 in Riyadh,” Faqeeha added.

The upcoming UNCCD COP is anticipated to be the most extensive one yet, showcasing the inaugural Green Zone as a specialized hub for cooperation and creativity, with the goal of elevating the involvement of the private sector in land restoration efforts.

Earlier in October, Saudi Foreign Minister Prince Faisal bin Farhan led the Kingdom’s delegation at the BRICS Plus 2024 Summit in Kazan, Russia, on behalf of King Salman. 

Prince Faisal highlighted at the time that the volume of bilateral trade with the BRICS countries exceeded $196 billion in 2023, representing 37 percent of the Kingdom’s total foreign trade, underscoring the significant economic relationships driving the nation’s engagement with the bloc.

Saudi Arabia has not officially joined the bloc but participates in its activities as an invited nation. 


IMF’s commitments to bolster support for low-income nations, says Al-Jadaan

Updated 27 October 2024
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IMF’s commitments to bolster support for low-income nations, says Al-Jadaan

JEDDAH: Saudi Finance Minister Mohammed bin Abdullah Al-Jadaan has said that low-income countries will benefit from new commitments made by the International Monetary Fund.

Speaking at a press conference in Washington, DC, Al-Jadaan, who chairs the International Monetary and Financial Committee, revealed the completion of a review of the Poverty Reduction and Growth Trust. This initiative aims to enhance support for nations facing balance of payments challenges, according to the Saudi Press Agency.

Accompanied by IMF Managing Director Kristalina Georgieva, Al-Jadaan emphasized the necessity for both the IMF and World Bank to refine their strategies to assist countries grappling with liquidity issues. He also backed the IMF’s efforts to enhance capacity-building assistance and provide appropriate financing.

Leading the Saudi delegation at the IMF and World Bank annual meetings and the G20 Finance Ministers and Central Bank Governors meeting from Oct. 21 to 26, Al-Jadaan commended committee members for their collaboration and congratulated Georgieva on her reappointment as managing director.

He also announced the addition of a 25th seat on the IMF Executive Board, specifically designated for the African continent, marking a significant step in representation.

The IMFC serves as a strategic platform to address global economic growth, resilience, and financial stability. Saudi Arabia’s leadership in this committee underscores its commitment to multilateral cooperation and its role in promoting economic growth both regionally and globally.

During his visit to the US, Al-Jadaan engaged in discussions with key financial leaders, including US Treasury Secretary Janet Yellen, focusing on opportunities for economic cooperation.

Joined by Saudi Economy Minister Faisal Al-Ibrahim and Saudi Central Bank Gov. Ayman Al-Sayari, he also met with representatives from major financial institutions such as Moody’s, Fitch, S&P, BNP Paribas, and JP Morgan, discussing investment prospects in the Kingdom under Vision 2030.

“We discussed reforms in Saudi Arabia and their role in achieving robust economic growth,” Al-Jadaan noted in a post on his X account.

In another update, he stated: “In my meeting with US Treasury Secretary Janet Yellen, we explored economic and financial cooperation opportunities between our two nations.”

Al-Jadaan also met with Hayashi Nobumitsu, governor of the Japan Bank for International Cooperation, to discuss ways to strengthen cooperation between Saudi Arabia and JBIC, covering a range of mutual interests aimed at enhancing economic ties and investment opportunities.

The minister also attended the signing of a letter of intent between the Arab Monetary Fund and the Palestinian government for a Saudi-funded financial support program designed to boost the Palestinian economy.

Furthermore, he met with officials from the Japan Bank for International Cooperation and engaged in discussions with UK Chancellor Rachel Reeves and Sweden’s Finance Minister Elisabeth Svantesson about expanding partnerships.

During a session titled “Better, Bigger, and More Effective Multilateral Development Banks,” Al-Jadaan highlighted the need to enhance the operational effectiveness and financial capacity of Multilateral Development Banks to address the growing needs of developing nations, reaffirming Saudi Arabia’s support for the G20 roadmap to make MDBs more impactful.

In another session, he underscored the G20’s vital role in fostering global economic stability, referencing the group's prompt response to the COVID-19 crisis under Saudi Arabia’s presidency in 2020, which included debt relief initiatives.

On the sidelines of the meeting, Saudi Deputy Finance Minister Khalid Bawazier participated in a roundtable discussion, emphasizing the Kingdom’s commitment to the Sustainable Development Goals, which are integral to Vision 2030.

Bawazier also attended the G20 Joint Meeting of Finance, Climate, Environment, and Foreign Affairs Ministers and Central Bank Governors, reiterating Saudi Arabia’s pledge to achieve net-zero emissions by 2060 through the Circular Carbon Economy framework, aligning with the nation’s economic diversification and development objectives.