SAO PAULO: Nokia Siemens Networks is opening an assembly line in Brazil with contract manufacturer Flextronics International Ltd. to build next generation mobile phone networks, a senior executive said in an interview.
The plant should begin shipping fourth-generation (4G) wireless equipment at the start of October, as local carriers build out networks for the 2014 World Cup, said Ken Wirth, head of the Americas region for Nokia Siemens.
“What we’re looking to do is align our manufacturing capacity close to the markets that we’re selling in. So that lowers our transport costs, tariffs and any other things that pop up,” Wirth said, declining to comment on how much each partner had invested in the joint venture.
Brazil issued 4G broadcast licenses in June stipulating at least 60 percent Brazilian content in the hardware installed, a requirement challenged by the US and the European Union at the World Trade Organization.
For Nokia Siemens, the demand from four Brazilian operators starting up their 4G networks will be enough to justify the local manufacturing capacity for the next 12 to 18 months, Wirth said, after which the Brazil plant could supply the region.
The company has already signed 4G contracts with a Brazilian carrier and a Chilean carrier that Wirth declined to name.
With local production already ramping up, Wirth said he sees Brazil’s new 4G networks as a chance for Nokia Siemens to grow its share of the Latin American market from about one-third. The region contributes 13 percent of the company’s revenue — more than North America — and is growing fast.
In Brazil alone, wireless carriers have earmarked some $1.5 billion in capital expenditures for next year, with about 30 percent dedicated to 4G technology. Operators have committed to minimum investments in their 4G networks to cover host cities for the Confederations Cup in 2013, a dress rehearsal for the World Cup.
By the time hordes of foreign fans descend on Brazil, Wirth said Nokia Siemens will have a quick fix for the sudden surge in demand, rolling out so-called small cell technology to offer concentrated coverage way below the cost of new antennas.
President Dilma Rousseff has already shown interest in the technology, stretching a 30-minute meeting with the head of cell chip maker Qualcomm to 90 minutes last week as she pressed for details about small cell equipment.
Wirth said small cell installations also offer Nokia Siemens a chance for a comeback in the United States, where it missed out on a rush of major 4G contracts.
“Small cell is the next wave. Since we haven’t gotten any of that business, if we get into small cell it’s all upside,” he said.
Nokia Siemens aims to start installing small cell units in the US and Japan by the end of 2013, expecting carriers there to soon devote 70 percent of capital spending to the technology.
Wirth joined Nokia Siemens in April after more than a decade with Alcatel Lucent. He said his new employer is showing signs of renewed focus after a painful restructuring that called for the sale of non-core units and the elimination of about 17,000 jobs globally.
Around 12,000 of those positions have already been cut, Wirth said, helping operations to generate positive cash flow for three straight quarters.
The venture has previously struggled to make a profit since it was formed in 2007 by Nokia and Siemens in the face of aggressive pricing from industry leader Ericsson.
“What we’re driving toward is to be a viable and sustainable company that throws off cash,” Wirth said.
“It gives you options to do other things, whether that’s a partnership with someone else, a merger, whatever other business form it takes.”
Nokia Siemens opens plant with Flextronics in Brazil
Nokia Siemens opens plant with Flextronics in Brazil
Energy security key to inclusive growth, says Saudi finance minister
RIYADH: Energy security is not a luxury but “a fundamental pillar for achieving development and inclusive growth,” said Saudi Arabia’s Finance Minister Mohammed Al-Jadaan.
Delivering the opening remarks at the OPEC Fund for International Development Forum 2025 in Vienna, Al-Jadaan warned that the absence of reliable energy access undermines critical sectors, including healthcare, education, productivity, and food and water systems.
“With rising geopolitical tensions, market volatility, and surging global energy demand, it has never been more urgent to achieve a more secure and diversified energy landscape,” Al-Jadaan said.
He added: “This requires a strategic push to diversify energy sources, scale up investment in clean technologies, and adopt innovative financing solutions to accelerate energy access and strengthen long-term energy security.”
Four-point reform plan
Al-Jadaan outlined four policy recommendations for multilateral development banks aimed at boosting global energy resilience. He stressed the need to support all energy sources without bias and cautioned against emissions policies that exclude major energy contributors.
He said such policies risk destabilizing markets and disproportionately impact developing economies and vulnerable populations.
His second recommendation focused on expanding concessional financing to underserved regions. The minister praised the World Bank’s “Mission 300” initiative, which aims to provide energy access to 300 million people in Africa, and acknowledged the contributions of the Islamic Development Bank and the OPEC Fund.
Al-Jadaan also commended Saudi Arabia’s Forward7 Clean Fuel Solutions for Food initiative under the Middle East Green Initiative, which promotes clean fuel deployment globally. The program has partnered with institutions including the OPEC Fund, the World Bank, the Islamic Development Bank, and the International Islamic Trade Finance Corp.
De-risking and innovation
Al-Jadaan’s third point emphasized the need to de-risk investments in the energy sector to encourage private sector involvement.
He cited mechanisms such as partial risk guarantees, political risk insurance, and blended finance structures as essential tools to mitigate risks and enhance the feasibility of energy projects, particularly in low-income and high-risk countries.
“These tools help mitigate expected risks and enhance the bankability of energy projects, especially in low-income and high-risk countries,” the minister said.
In his final point, Al-Jadaan called for stronger investment in technologies such as carbon capture and sustainable hydrocarbon applications to reduce emissions and maintain supply during the transition to net-zero.
He underscored the far-reaching consequences of energy poverty, including economic instability, forced migration, and increased humanitarian pressures.
Al-Jadaan reaffirmed the Kingdom’s aim to generate 50 percent of electricity from renewables by 2030 and achieve net-zero emissions by 2060. These goals are being pursued under the Circular Carbon Economy framework.
“In the Kingdom of Saudi Arabia, we are working with everyone to enhance energy security and eliminate energy poverty, while continuing efforts to combat climate change,” he said.
Development crisis warning
OPEC Fund President Abdulhamid Al-Khalifa also addressed the forum, warning of a worsening global development gap.
He said the world is facing what the UN secretary-general has described as a “development emergency,” pointing out that only 18 percent of Sustainable Development Goals have made measurable progress since their inception in 2015.
“Developing countries face a $4 trillion annual funding gap, worsened by rising debt servicing costs that are draining resources from essential services,” Al-Khalifa said.
To address this, he said the OPEC Fund is ramping up efforts and leveraging momentum from previous forums. Among its recent actions, the fund has joined the “Mission 300” initiative to expand energy access.
It has also deployed $1 billion as part of its food security action plan, committed an additional $2 billion to support food supply chains in partner countries, and allocated $1 billion to combat desertification under the Arab Coordination Group's $10 billion Riyadh Global Drought Resilience Partnership.
New trade facility
Al-Khalifa also announced the launch of the OPEC Fund Trade Facility Initiative, a program designed to mobilize billions of dollars in support through 2030.
The facility aims to help countries secure strategic imports, address trade-related liquidity gaps, and strengthen resilience against external economic shocks.
“This is a direct response to an urgent need, and a reflection of our commitments to stand by our partners when it matters most,” he said.
Al-Khalifa emphasized the growing strain on trade as a development cornerstone, citing disrupted supply chains, rising costs, and foreign exchange volatility that are affecting the most vulnerable communities.
Project milestones
In 2024, the OPEC Fund committed $2.3 billion to 70 projects across the globe — a 35 percent increase compared to the previous year.
These projects connected 300,000 households to electricity, built over 500 km of roads, and supported 75,000 farmers and 35,000 women.
As the Arab Coordination Group marks its 50th anniversary this year, Al-Khalifa noted the significance of this milestone, saying the OPEC Fund is honored to stand alongside other member institutions in celebrating five decades of collaborative development efforts.
“We know from experience, when partners align their resources, expertise, and approaches, the results are transformative,” he said.
Both Al-Jadaan and Al-Khalifa stressed that global cooperation and innovation are critical to overcoming current challenges and advancing toward a future of inclusive and sustainable development.
Saudi Arabia, Panama sign air transport agreement to strengthen global connectivity
- Deal signed during 55th edition of Paris Air Show
- It reflects Kingdom’s broader efforts to expand its global aviation footprint
RIYADH: Saudi Arabia and Panama have signed a bilateral air services agreement to enhance air connectivity between the two countries and expand access to global aviation markets.
The deal was signed during the 55th edition of the Paris Air Show by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, and establishes a regulatory framework for safe, efficient, and fair air services, according to the Saudi Press Agency.
The deal reflects the Kingdom’s broader efforts to expand its global aviation footprint in line with Vision 2030. As part of its National Aviation Strategy, the country is building international partnerships, strengthening regulatory frameworks, and increasing air connectivity to link to 250 global destinations and transport 330 million passengers annually by 2030.
The new agreement complements the 1944 Chicago Convention on International Civil Aviation, the legal foundation for global air travel. It includes provisions on traffic rights, airline designation, and licensing, as well as the enforcement of international safety and security standards.
It is also designed to promote fair competition and support the long-term commercial interests of national carriers in both countries.
The deal aims to serve the common economic interests of national carriers and enhance their participation in the air transport market by applying modern market-entry models and supporting all forms of air traffic, SPA reported.
“The organization’s participation aims to highlight the role of the civil aviation sector in the Kingdom as an important driver of the national economy, the promising investment opportunities it offers, and to learn more about the latest innovative global technologies in the sector,” the report added.
Saudi Arabia, represented by GACA, concluded its participation at the Paris Air Show with a wider range of strategic announcements aimed at bolstering its aviation sector. Key outcomes included a memorandum of understanding with Airbus on environmental sustainability and aviation safety, a leasing deal for 77 new aircraft by Avilease, and Riyadh Air’s order for 50 Airbus A350-1000 jets, increasing its future fleet to 182 aircraft in line with Vision 2030’s goal of positioning Riyadh as a global air hub.
The Saudi delegation was led by Saleh Al-Jasser, minister of transport and logistic services and chairman of GACA, accompanied by GACA president and senior executives from across the Kingdom’s aviation ecosystem. Their participation focused on strengthening partnerships with leading aerospace companies, attracting investment into the Saudi aviation sector, and advancing bilateral cooperation.
During the show, Al-Jasser and the delegation toured various pavilions showcasing innovations in advanced air mobility, aerospace, sustainability, and smart manufacturing.
They observed emerging solutions featuring high levels of automation and digitization across both commercial and military aircraft.
In addition to the MoU with Airbus, the show saw key commercial signings. Avilease, a Public Investment Fund-owned leasing firm, agreed to purchase 77 new-generation aircraft, including A350 freighters and A320 narrow-body jets. Riyadh Air confirmed an order for 50 A350-1000 aircraft, part of its plan to turn Riyadh into a global aviation hub.
A separate agreement was signed between Cluster 2 Airports Co. and Airbus to explore collaboration opportunities in training, development, and investment.
Al-Duailej also met with several global aviation leaders, including Damien Caze, director general of the French Civil Aviation Authority; Arjan Meijer, CEO of Embraer; and Bahrain’s Minister of Transportation and Telecommunications Sheikh Abdulla Al-Khalifa, to discuss regional cooperation.
The Kingdom’s presence at the Paris Air Show underscored its commitment to civil aviation as a driver of economic growth, innovation, and international connectivity. The event is one of the world’s most prominent in the aerospace industry, attracting thousands of participants and showcasing the latest in aviation, defense, and space technologies.
SIC, Investindustrial forge alliance to drive Saudi industrial expansion
RIYADH: SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, has entered into a strategic partnership with European private equity firm Investindustrial, marking its first international private equity commitment.
The agreement is aimed at catalyzing new industrial investments in the Kingdom by localizing advanced manufacturing and integrating Saudi small and medium-sized enterprises into Investindustrial’s global value chains.
The partnership is a significant milestone for SIC as it broadens its international engagement and supports Saudi Arabia’s Vision 2030 objectives. These include attracting institutional capital, localizing industrial expertise, and contributing to the National Industrial Strategy, which targets increasing the number of factories to 36,000 by 2035.
The announcement follows a previous agreement in March between SIC and Ashmore Investment Saudi Arabia to launch a private closed-end industrial fund. The SR400 million ($106.6 million) initiative — the first of its kind in the Kingdom — is managed by a global asset manager and aims to support a wide array of industrial assets. That move laid the foundation for SIC’s private equity strategy to stimulate domestic investment and expand global partnerships.
“This agreement represents a new chapter for SIC,” said Fahad Al-Naeem, CEO of SIC. “By partnering with Investindustrial, we’re bridging global reach, operational depth, and industry specialization into our ecosystem, positioning Saudi Arabia as the platform for regional and international manufacturing growth.”
The targeted sectors include machinery and equipment, automation, medical devices, and sustainable consumer products, with an emphasis on local value creation and industrial innovation.
This move comes as the Kingdom ramps up efforts to strengthen its industrial base and draw international investment into strategic sectors. In April, Saudi Arabia’s Industrial Production Index rose 3.1 percent year on year, led by gains in manufacturing and mining. Manufacturing activity alone climbed 7.4 percent annually, with a 0.5 percent uptick month on month.
Adding to this momentum, the government launched the Standard Incentives for the Industrial Sector program in May, offering up to 35 percent financing on initial capital expenditure per project, capped at SR50 million. The initiative supports facility development and operations over a seven-year term.
“SIC will utilize its local market expertise to pave the way for global manufacturers to establish a footprint in Saudi Arabia and connect with international supply chains, benefiting from the Kingdom’s competitive position,” Al-Naeem added.
Investindustrial, which has raised €17 billion and operates across eight global offices, focuses on mid-market companies with a mission to drive sustainable value creation and support global expansion.
“The Kingdom of Saudi Arabia has emerged as a key strategic growth region for Investindustrial’s portfolio companies,” said Andrea Bonomi, chairman of Investindustrial.
“Many of our investments align closely with the goals of Saudi Arabia’s Vision 2030, fostering strong and natural synergies for long-term value creation,” Bonomi added.
The signing ceremony was attended by Prince Sultan bin Khaled, vice chairman of SIC, and Italy’s Ambassador to Saudi Arabia, Carlo Baldocci, reflecting the high-level support backing the agreement.
The deal further advances SIC’s role as a gateway for institutional-grade industrial investment into Saudi Arabia, reinforcing its mandate to help build a globally competitive and resilient manufacturing sector.
Foreign ownership in Saudi equities tops $105bn despite market pullback
RIYADH: Foreign investors held SR394.58 billion ($105.2 billion) in Saudi equities as of June 12, marking an annual decline of 1.1 percent, although their market share rose amid a broader downturn.
According to the latest data from Saudi Exchange, the dip in foreign ownership comes as the total value of holdings in the main market fell to SR9.14 trillion, down from SR9.95 trillion in June 2024, as valuations across key sectors — including financials, materials, and energy — softened.
The increase in foreign investors’ market share — from 4.01 percent to 4.32 percent — is attributed to the overall decline in market size.
Saudi nationals remain dominant in the market, holding SR8.68 trillion, or 94.94 percent of total ownership, down from SR9.48 trillion, or 95.28 percent, a year earlier.
Investments from Gulf Cooperation Council countries also dipped, with holdings falling from SR70.17 billion to SR67.46 billion, despite their share slightly increasing to 0.74 percent.
The drop in market capitalization coincided with a 1.5 percent decline in the Tadawul All Share Index on June 12, driven by losses in heavyweight stocks such as Al Rajhi Bank and Saudi Arabian Mining Co. The selloff came amid renewed geopolitical tensions in the region.
“While solid fundamentals offer a hopeful outlook, the market’s reaction was more heavily influenced by geopolitical tensions,” said Milad Azar, a market analyst at XTB MENA, in comments to Reuters.
His statement followed the US decision to reposition diplomatic staff in the region, stoking concerns over escalating tensions with Iran. The move added pressure to already cautious markets, where investors have been rebalancing portfolios in response to rising interest rates and shifting risk appetite.
Despite recent volatility, the long-term outlook for foreign participation remains strong. Saudi Arabia’s inclusion in global emerging market indices — such as MSCI, FTSE Russell, and S&P Dow Jones — continues to support passive fund flows.
Reforms under Vision 2030, including enhanced transparency, stronger corporate governance, and an expanding privatization pipeline, are widely viewed as central to boosting long-term investor engagement in Saudi Arabia’s capital markets.
The government’s commitment to diversifying the economy has opened new sectors for investment, while regulatory upgrades have helped align local practices with international standards.
As part of these reforms, Tadawul has undergone a transformation in recent years to enhance its global appeal. The market’s inclusion in major emerging market indices between 2018 and 2019 helped unlock billions in passive fund inflows. Since then, Tadawul has focused on improving disclosure quality, streamlining Qualified Foreign Investor registration, and modernizing its trading and post-trade systems.
This evolution continues to attract international capital through a growing pipeline of sector-diverse initial public offerings. Recent listings in health care, technology, and consumer goods have provided foreign investors with broader exposure to non-oil growth areas, further supporting portfolio diversification.
Meanwhile, ongoing efforts to enhance post-trade infrastructure and environmental, social, and governance reporting are expected to improve overall market competitiveness and strengthen the exchange’s appeal to long-term institutional investors.
Riyadh climbs 60 places to rank 23rd globally in startup ecosystem index
JEDDAH: Saudi Arabia has reached a key milestone in the global startup scene, with Riyadh climbing 60 places in just three years to rank 23rd among the top 100 emerging ecosystems, according to new data.
The 2025 Global Startup Ecosystem Report, published by Startup Genome in collaboration with the Global Entrepreneurship Network, highlights the city’s transformation into a “launchpad into the $2+ trillion GCC (Gulf Cooperation Council) market.”
Riyadh also ranks third in the Middle East and North Africa for funding, reflecting a sharp rise in deal volume.
Saudi Arabia’s startup ecosystem is rapidly evolving, driven by Vision 2030, strong government support, and rising investor interest.
Riyadh’s emergence as a leading innovation hub and strategic gateway to the broader GCC market reflects the Kingdom’s ambitions to diversify its economy, attract global talent, and foster high-growth sectors, including fintech, artificial intelligence, and digital infrastructure.
The analysis notes that over $2.6 billion in venture capital funding has flowed into the Saudi market since 2018, driven by government-backed funds, including the Saudi Venture Capital Co., Jada, and the Public Investment Fund.
While global ecosystems grapple with declining investment and exit slowdowns, the report highlights the Gulf region, particularly Riyadh, as one of the world’s most resilient and forward-looking innovation corridors, gaining momentum as a stable and fast-growing hub for entrepreneurship.
Samantha Evans, MENA managing director at Startup Genome, said: “The Gulf is one of the few markets in the world where ambition, alignment, and execution converge,” adding that it is “not a speculative bet — it’s a strategic inflection point.”
In Saudi Arabia, Vision 2030 programs such as Monsha’at and CODE are “designing policy architectures to enable them (startups) to scale globally.” The UAE, through platforms like Hub71, DIFC Innovation Hub, and national sandbox frameworks, continues to attract “top-tier founders, Series A companies, and emerging technologies,” the study noted.
Saudi Arabia’s performance stands out across multiple metrics. The Kingdom ranked third globally in funding volume and investment-to-impact ratio, and fourth in talent availability, reflecting its ability to attract and retain entrepreneurial expertise. It also posted the second-highest performance in the MENA region, according to the report.
Key growth drivers include increased venture capital activity, enhanced entrepreneurial infrastructure, and rising investment in emerging technologies. Government-backed initiatives, particularly through Monsha’at, have strengthened the ecosystem, improved regulation, and boosted the contribution of small and medium-sized enterprises to the national economy in line with Vision 2030 targets.
The study identifies high-growth sectors fueling the Kingdom’s ascent, including artificial intelligence, fintech, cybersecurity, smart cities, infrastructure, and digital health, all of which align with the nation’s broader economic transformation.
“Saudi Arabia has made significant strides to support innovation, drive economic diversification, and empower a new generation of entrepreneurs,” said Khaled Sharbatly Chairman of the National Entrepreneurship Committee Khaled Sharbatly. “We are committed to positioning Saudi Arabia as a global hub for entrepreneurship and innovation.”
Riyadh, described in the report as “not just the capital of Saudi Arabia — it’s a launchpad,” now hosts the regional headquarters of global firms such as Google Cloud, Amazon, and SAP — a sign of growing global confidence in the Kingdom’s innovation environment.
The city is characterized as a “fintech powerhouse,” with “over 200 fintechs now operating in the Kingdom,” supported by regulatory efforts from the Saudi Central Bank and Fintech Saudi.
Other sectors, such as cybersecurity, logistics, and education tech, are also thriving, with startups including Mozn, Salasa, and Diggipacks advancing through “strategic partnerships and government procurement pipelines,” as per the analysis.
Riyadh’s founder-friendly ecosystem is further supported by the Ministry of Investment and the Ministry of Communications and Information Technology, which offer 100 percent foreign ownership, fast licensing, and innovation-friendly regulations.
Programs like CODE and the Digital Government Authority sandboxes help “speed up time-to-market for new technologies.”
According to the report, startups are encouraged to relocate to Riyadh due to its direct access to major enterprise buyers, including sovereign wealth funds, ministries, and conglomerates. Government entities such as PIF, STC, and Aramco are actively partnering with and investing in emerging companies.
According to the Saudi Press Agency, this “notable progress reflects the Kingdom’s rapidly evolving entrepreneurial environment, marked by strong growth in venture capital, the expansion of startup infrastructure, and rising levels of innovation and investment in emerging technologies.”
The report draws on data from over five million startups across more than 350 global ecosystems, offering insights into the trends and policies shaping the future of innovation worldwide.
In the organization’s 2024 report, Riyadh ranked fourth among the top five startup ecosystems in the MENA region, with Jeddah and Alkhobar also featured on the list.
