PIF partners with Google Cloud to create AI hub in Saudi Arabia 

The agreement, signed during the eighth Future Investment Initiative in Riyadh, supports Saudi Arabia’s ambition to become a regional tech hub by the end of the decade. Photo/Supplied
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Updated 30 October 2024
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PIF partners with Google Cloud to create AI hub in Saudi Arabia 

RIYADH: Saudi Arabia’s Public Investment Fund has formed a strategic partnership with Google Cloud to establish an advanced artificial intelligence hub near Dammam in the Eastern Province.  

This AI center will create thousands of jobs, contribute $71 billion to Saudi Arabia’s gross domestic product over the next eight years, according to a press release.  

The agreement, signed during the eighth Future Investment Initiative in Riyadh, supports Saudi Arabia’s ambition to become a regional tech hub by the end of the decade.   

The technology sector is one of PIF’s priority investment areas, serving as a crucial enabler for other sectors in the economy, including entertainment, financial services, healthcare, transport and logistics, utilities, and renewables. 

“This partnership demonstrates PIF’s dedication to fostering an AI-friendly environment through investments in human capital and technology, upskilling thousands with cutting-edge tools to support our sustainable and innovative infrastructure goals,” said Yasir Al-Rumayyan, governor of PIF.   

He added: “Saudi Arabia is a prime location for global tech partners as PIF brings both sector expertise and a long-term approach to investment.”  

The partnership will provide AI training for millions of Saudi students and professionals, supporting the national objective of expanding the information and communication technology sector by 50 percent. Through Google Cloud’s technology, industries will have enhanced access to AI applications, enabling growth and capacity building. 

The agreement, subject to regulatory approvals, also includes joint research on Arabic language models and Saudi-specific AI applications.  

“This strategic partnership will accelerate adoption of AI in the local language and across industries — including health care, retail, financial services and more — for enterprises and startups in Saudi Arabia, across the Middle East, Africa and around the world,” said Ruth Porat, president and chief investment officer of Alphabet and Google.  

To advance Arabic-language models, PIF and Google Cloud plan to enhance the Arabic-language capabilities of Gemini, Google’s generative AI model family, by integrating additional Arabic datasets with Google Cloud’s technology. 

PIF stated that this collaboration will allow local businesses and developers to incorporate these models into their systems, enabling them to build advanced AI agents and applications tailored to Arabic language use. 

“As part of Saudi Arabia’s rich technology ecosystem, we aim to create highly-skilled jobs for Saudis and opportunities for global businesses to fuel growth through cloud adoption,” added Porat. 


Riyadh Air orders 60 next-generation Airbus A321 aircraft

Updated 12 min 15 sec ago
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Riyadh Air orders 60 next-generation Airbus A321 aircraft

RIYADH: Saudi Arabia’s Riyadh Air, a subsidiary of the Public Investment Fund, has signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft, as it plans commencing its operations in 2025. 

According to a press statement, the deal was signed by Tony Douglas, CEO of Riyadh Air, and Christian Scherer, CEO Commercial Aircraft of Airbus, at the 8th Future Investment Initiative in the Kingdom’s capital city.  

Strengthening the operations of Riyadh Air is crucial for Saudi Arabia as the Kingdom is evolving itself as a global tourism destination, aligned with the economic diversification goals outlined in Vision 2030 program. 

In September, the airline launched its first non-commercial flight from Riyadh’s King Khalid International Airport as part of the certification process.

Last year, the airlines had ordered 39 Boeing 787 Dreamliners with options for 33 more, thus bringing the estimated fleet capacity to 132.

“We are pleased to embark on another key milestone in Riyadh Air’s journey with the carrier’s second major fleet order, this time in partnership with Airbus,” said Yasir Al-Rumayyan, governor of PIF and chairman of Riyadh Air. 

He added: “This deal underlines the airline’s ambitious intentions in advance of next year’s launch as it builds a comprehensive international network and establishes Riyadh as a major strategic global aviation hub.”

The Airbus A321neo airliner is widely considered the most sustainable and efficient aircraft in the aviation industry, and it is expected to fulfill Riyadh Air’s ambition to cover 100 destinations worldwide by the end of this decade, the press statement said. 

Riyadh Air added that the new order will also support the airline’s long-term goal of creating 200,000 jobs and delivering enhanced connectivity to Riyadh to the world. 

“This order will not only enable us to support economic growth in the aviation industry, it will also ensure Riyadh Air operates one of the most sustainable fleets in the industry and be instrumental in helping Saudi Arabia achieve its net-zero emissions goals,” said the CEO of Riyadh Air. 

Douglas added: “This deal strongly reinforces the positive economic impact of Saudi Arabia’s newest airline on both a global and local scale and helps facilitate the fast-growing local aviation ecosystem.” 

The chief of Commercial Aircraft at Airbus said that the latest generation A321neo aircraft will bring exceptional efficiency to Riyadh Air’s operations and comfort to its passengers. 

“We look forward to working together to support the incredible growth of Saudi aviation,” added Scherer. 


Saudi aviation to enhance innovation, sustainability through new alliance

Updated 22 min 14 sec ago
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Saudi aviation to enhance innovation, sustainability through new alliance

JEDDAH: The Saudi aviation sector will benefit from a strategic alliance between the King Salman International Airport Development Co. and the Future Investment Initiative Institute to enhance innovation and sustainability.

The two parties inked the agreement on the sidelines of the eighth edition of the FII in Riyadh, a gathering of global leaders and decision-makers in business, politics, and investment.

Marco Mejia, acting CEO of KSIADC, and Richard Attias, CEO of the FII Institute, attended the signing ceremony.

The KSIADC will join an extensive network dedicated to developing solutions for worldwide challenges through FII’s platform and global connections. KSIADC, one of Saudi Arabia’s sovereign wealth fund firms, supports Vision 2030’s aim of establishing Riyadh as an international hub for transportation, trade, and tourism.

Developed in Riyadh, the airport will have six parallel runways and is expected to contribute SR27 billion ($7.18 billion) annually to the Kingdom’s non-oil gross domestic product.

Mejia said: “King Salman International Airport is a pioneering project focused on delivering innovative, high-quality, and sustainable solutions,” he said.

He added that they are working to set new global standards in airport design and operations to become an international benchmark in aviation.

“This strategic partnership with the FII Institute will help achieve this goal, paving the way for a sustainable future that empowers humanity and protects the land,” he said.

KSIA will help drive annual passenger traffic in Saudi Arabia from the current 29 million to 120 million travelers by 2030 and 185 million by 2050, with aircraft traffic in the Kingdom increasing from 211,000 to more than 1 million flights per year.

The airport is among the ambitious projects supporting the Kingdom’s Vision 2030, leveraging its strategic location connecting Asia, Africa, and Europe, establishing Riyadh as a global destination for transportation, trade, and tourism.

The partnership is set to enhance the airport’s standing in innovation and sustainable development, underscoring its contribution to shaping the future of global aviation and building a sustainable world, according to the Saudi Press Agency.

Attias welcomed KSIADC to the FII Initiative, adding that: “By joining, the company becomes part of a unique group of leading companies and organizations providing the expertise, strategies, and leadership needed to tackle contemporary global challenges and advance our mission to positively impact humanity.” 


Esports is the future of mainstream sports, says SEF chairman

Updated 31 min 54 sec ago
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Esports is the future of mainstream sports, says SEF chairman

RIYADH: Esports is emerging as “the mainstream sport of the future,” reflecting Saudi Arabia’s ambition to position itself as a global hub for the industry, according to a top official. 

Speaking during a panel at the Future Investment Initiative, Prince Faisal bin Bandar Al-Saud, chairman of the Saudi Esports Federation, emphasized the rapid growth of esports, noting that younger generations view gaming as an integral part of their lives, engaging as players, viewers, professionals, and coaches.  

“They’ve known esports from birth,” he said, contrasting their experience with that of older generations.   

Prince Faisal further added that esports and traditional sports are getting “closer in spirit, in viewership, in participation, and in values.”

He stated that innovations in esports will soon become reality like the Olympics Esports Games.  

“When we talk about hours watched, you’re referring to over 100 million hours for the NFL (National Football League) and 50 million hours for the Olympics. In our recent event at the here in the Esports World Cup, we had 111 million hours watched, not including China. If you include China, that adds another 140 million hours, bringing the total to 250 million hours,” he said. 

Prince Faisal emphasized that Saudi Arabia’s strategy to become a global leader in gaming involves fostering collaboration between the public and private sectors, setting measurable goals, and uniting all stakeholders under a shared national vision.   

“We want Saudi Arabia to be a natural part of the conversation,” he said, referring to established esports centers like Japan, South Korea, and the US. “When you think about a career path in this industry, you think about coming to Saudi as much as you think about going to any of those other countries.”  

According to him, the most important aspect of their efforts was launching a gaming and esports authority that would encompass the national strategy for gaming and esports. 

The Kingdom’s strategy includes creating a supportive regulatory environment, establishing key performance indicators to guide progress, and bringing all entities together under “Team Saudi.”   

This unified approach, according to Prince Faisal, will pave the way for Saudi Arabia to become a significant player in the global gaming landscape and make it a destination for talent and innovation in esports.  


AlUla’s non-tourism sector economically buoyant, RCU chief says

Updated 54 min 29 sec ago
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AlUla’s non-tourism sector economically buoyant, RCU chief says

RIYADH: The Royal Commission for AlUla is reshaping the city’s economy, with non-tourism sectors contributing around SR7 billion ($1.86 billion) to Saudi Arabia’s gross domestic product, a senior official said.

During a panel session at the Future Investment Initiative in Riyadh, Abeer Al-Akel, acting CEO of RCU, highlighted that this figure nearly matches AlUla’s tourism contribution to the Kingdom’s gross domestic product at around SR9.5 billion.

Al-Akel said that the commission is working to diversify the city’s economic foundation and provide the local community with inclusive growth opportunities.

She added: “People might not know that the contribution of non-tourism sectors in AlUla is basically around SR7 billion, which is a very close amount to the tourism, right? 

“We are basically working with the local community in ensuring that we provide the local community with opportunities for them to participate in what we do in AlUla.”

As part of RCU’s diversification strategy, agriculture ranks as the second-largest sector in AlUla after tourism.

The commission has committed to improving farming practices and enhancing the entire agricultural value chain — from production and packaging to buyer connectivity.

“We’re aiming to empower our farming community and introduce local produce to a broader market,” Al-Akel said, underscoring RCU’s goals of fortifying AlUla’s food ecosystem and increasing local producers’ market reach.

She continued: “We’re really doing this for three main reasons. One is to ensure that we create and advance the food ecosystem in AlUla and expand it, but we’re also doing this to empower our farming community.

Al-Akel added: “Finally, is to mainly do that because of introducing local produce to a bigger networking market.”

Furthermore, RCU’s efforts to establish AlUla as a regional film hub are underway, with recent successes including the blockbuster movie Kandahar featuring Gerard Butler.

She explained that AlUla now boasts a world-class, 30,000 sq. meter production facility, positioning it as a major destination for international film production.

With 700 production days already recorded, the sector is set to contribute to the economy and foster local creative talent both in front of and behind the camera.

AlUla’s historic role as an ancient crossroad of civilizations is being revitalized through strategic international partnerships.

RCU collaborates with leading global organizations such as UNESCO and the World Bank, working toward shared goals of cultural conservation, environmental preservation, and sustainable economic growth.

AlUla’s comprehensive eco-friendly approach, guided by its 12-point Sustainability Charter, places environmental and cultural preservation at the forefront of all initiatives.

As Al-Akel emphasized, the RCU’s mandate is to “strike a delicate balance between development and ecosystem progress,” ensuring that AlUla’s unique natural and cultural landscape is protected while fostering economic growth.

“We are on the right track, and we have achieved a lot in the past years; we have basically introduced and released over 2,300 animals into the wild,” Al-Akel said.

She continued to say that 50 percent of the lands are “basically protected,” adding: “We have recruited more than 150 Rangers that are now patrolling and monitoring those reserves.”


Closing Bell: Saudi main index slips to close at 12,018 

Updated 30 October 2024
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Closing Bell: Saudi main index slips to close at 12,018 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 43.28 points, or 0.36 percent, to close at 12,018.81. 

The total trading value of the benchmark index was SR5.98 billion ($1.59 billion), as 92 stocks advanced, while 129 retreated.   

The MSCI Tadawul Index decreased by 6.42 points, or 0.42 percent, to close at 1,511.37 

The Kingdom’s parallel market, Nomu, edged up by 245.89 points, or 0.92 percent, to close at 26,868.99. This comes as 39 stocks advanced, while 36 retreated. 

The best-performing stock of the day was Etihad Altheeb Telecommunications Co., with its share price surging by 6.18 percent to SR116.8.  

Other top performers included Red Sea International Co., which saw its share price rise by 4.98 percent to SR75.9. 

MBC Group, and Saudi Arabian Amiantit Co., also saw a positive change at 4.57 percent and 4.08 percent to SR42.35 and SR34.45, respectively. 

The worst performer of the day was Saudi Industrial Export Co., whose share price fell by 7.12 percent to SR2.48. 

Nahdi Medical Co. and Al-Baha Investment and Development Co., also saw declines, with their shares dropping by 3.86 percent and 3.85 percent to SR124.4 and SR0.25, respectively.  

Leejam Sports Co. and Fourth Milling Co., also saw a negative change at 3.63 percent and 3.58 percent to SR186 and SR5.11, respectively. 

On the announcements front, Retal Urban Development Co. reported its preliminary financial results for the nine months ending Sept. 30 with a net profit after zakat and tax of SR145.98 million. This marked a 20.32 percent decline compared to the same period last year. 

According to a statement, the decrease was primarily due to an 87.4 percent drop in revenues from real estate unit and land sales, despite an 87.6 percent rise in development contract revenues driven by more active projects. 

General and administrative expenses rose by 63.3 percent to SR60.68 million due to organizational growth. Selling and marketing expenses also increased by 66 percent to SR23.54 million to boost market share and brand strength. 

Additionally, financing costs surged by 245.4 percent to SR58.27 million, impacted by higher debt and an increased Saudi Interbank Offered Rate. 

The company’s stock closed at SR14.22, down by 2.47 percent. 

Nahdi Medical Co. reported net profit of SR662.9 million for the same period, marking an 8.2 percent annual decline. This was partly due to the prior year’s non-recurring inventory provision release of SR33 million. 

Operating expenses also rose by SR78.6 million as the company invested in strategic initiatives, including new openings and digitalization, though efficiency programs improved expenses as a percentage of revenue by 1.3 percent. 

The company’s stock closed the session at SR124.2, reflecting a decrease of 4.02 percent.