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Saudi tourism projects supporting growth of surrounding areas: Al-Khateeb

Saudi Tourism Minister Ahmed Al-Khateeb speaks during a panel at the Saudi Green Initiative forum held on the sidelines on COP28 in Dubai.
Saudi Tourism Minister Ahmed Al-Khateeb speaks during a panel at the Saudi Green Initiative forum held on the sidelines on COP28 in Dubai.
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Updated 04 December 2023
Nirmal Narayanan
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Saudi tourism projects supporting growth of surrounding areas: Al-Khateeb

Saudi tourism projects supporting growth of surrounding areas: Al-Khateeb
Updated 04 December 2023
Nirmal Narayanan
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RIYADH: The ongoing tourism projects in Saudi Arabia which includes the $500-billion megacity NEOM are supporting the growth of surrounding villages, both socially and economically, according to the Kingdom’s tourism minister. 

Speaking during a panel at the Saudi Green Initiative forum held on the sidelines of the UN Climate Change Conference in Dubai on Monday, Ahmed Al-Khateeb said that all the upcoming tourist destinations in Saudi Arabia are being built with sustainability factor at the core. 

“If we go to all the villages around the Tabuk region, they were all benefitted by the development in NEOM. They found jobs, they sell products, they are getting trained, and all these projects are investing in these small villages and towns,” said Al-Khateeb. 

He added: “We are investing $800 billion in the next 10 years to build new destinations; NEOM, Red Sea, Asir, Diriyah etc. These new destinations are really putting the environment and climate at the top of their agenda.”

Al-Khateeb also noted that these tourism projects in Saudi Arabia are using environmentally friendly materials for their construction, and asserted that the Kingdom always gives priority to economic and environmental sustainability. 

“We are putting everything to make sure that the climate, nature and environment are protected,” added the minister. 

He further noted that tourism will contribute to almost 10 percent of the Kingdom’s gross domestic product by the end of this decade, as outlined in Vision 2030. 

“Saudi Arabia wants to unlock the travel and tourism sector, that represents just 3 percent of the GDP in 2019. By the end of this year, tourism’s contribution to the GDP will reach 7 percent, and we are hitting 10 percent by 2030 or maybe even higher,” added Al-Khateeb. 

The tourism minister added that Saudi Arabia is expected to welcome 26 million international visitors in 2023, compared to 10 million in 2019. 

He added that Expo 2030 will increase the number of foreign visitors to the Kingdom, and the government is doing everything to conduct the event in a seamless manner. 

“We are getting ourselves ready with the Riyadh Airport, which is huge with a 120 million passenger capacity. We are expanding hotel rooms. Riyadh will add about 100,000 key rooms in the next 10 years, in addition to the 250,000 key rooms we have today,” said Al-Khateeb. 

He concluded: “We will have 40 million visitors targeted to expo, and the majority of them will come from outside. Therefore, 2030 will be an exceptional year, and it will really celebrate the end of the first Vision — the Vision 2030.” 

Topics: COP28 SGI

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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
Updated 8 sec ago
NADIN HASSAN  
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Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY

Saudi Arabia, UAE lead MENA deal boom with $71bn in activity: EY
  • UAE and Saudi Arabia were the top investment destinations, accounting for 52% of the region’s total deal volume and 81% of deal value
  • Sovereign wealth funds played a key role in driving M&A activity in the region
Updated 8 sec ago
NADIN HASSAN  

RIYADH: Saudi Arabia and the UAE led Gulf region merger and acquisition activity, which increased 7 percent in value to $71 billion in the first nine months of the year. 

According to EY’s MENA M&A Insights 9M 2024 report, the Middle East and North Africa region saw a total of 522 deals during the period, with deal volume rising 9 percent year on year. 

The value growth was largely fueled by a surge in cross-border transactions and substantial investments from sovereign wealth funds, such as the UAE’s Abu Dhabi Investment Authority and Mubadala, and Saudi Arabia’s Public Investment Fund. 

Brad Watson, EY MENA strategy and transactions leader, said: “Deal activity in the MENA region has seen a notable improvement this year, driven by strategic policy shifts, the liberalization of investment regulations and robust capital inflows from investors.” 

He added: “With companies actively seeking opportunities to grow and diversify their operations, we have observed a surge in cross-border M&A volume and value.” 

The UAE and Saudi Arabia were the top investment destinations, accounting for 52 percent of the region’s total deal volume and 81 percent of deal value, with 239 transactions worth $24.5 billion. Both nations continue to benefit from their favorable business environments and strategic economic policies. 

“In particular, the UAE remained a favored investment destination during the first nine months of 2024 due to its business-friendly regulations and efficient legislative framework,” said Watson. 

Sovereign wealth funds played a key role in driving M&A activity in the region, supporting national economic strategies. These funds were particularly active in sectors aligned with long-term diversification plans, such as technology, energy, and infrastructure. 

Cross-border M&A deals dominated, representing 52 percent of the overall volume and 73 percent of the value, the report added. 

However, domestic M&A activity also saw a notable increase, rising 44 percent year on year to $19.3 billion, driven by government-related entities making significant acquisitions in the oil and gas, metals and mining, and chemicals sectors. 

Insurance and oil and gas emerged as the most attractive sectors, accounting for 34 percent of the total deal value. Technology and consumer products led domestic M&A by volume, with 78 deals representing 31 percent of activity. 

Saudi Arabia recorded the region’s largest domestic transaction, with energy giant Aramco’s $8.9 billion acquisition of a 22.5 percent stake in Rabigh Refining and Petrochemical Co. from Sumitomo Chemical. 

The US remained a top target for MENA investors, with 32 deals valued at $18.3 billion. The US-UAE Business Council helped facilitate these partnerships, with prominent US firms collaborating with UAE public and private sectors on various initiatives. 

Outbound and inbound deals 

Outbound M&A was the largest contributor to deal value, with 147 transactions totaling $41.4 billion, led by insurance and real estate investments. The US and China represented 70 percent of outbound deal value. 

Inbound deals also witnessed growth, rising 20 percent in volume and 47 percent in value to $10.4 billion. The US and UK were the leading contributors, driving activity in technology and professional services. 

Mega deals 

Ten of the region’s largest deals were concentrated in the Gulf Cooperation Council. These included Mubadala and partners’ $12.4 billion acquisition of Truist Insurance Holdings and an $8.3 billion investment in Chinese shopping mall operator Zhuhai Wanda Commercial Management Group. 

“Strengthening regional relationships with Asian and European economies, alongside existing ties with the US, enabled MENA countries to gain access to larger and growing markets,” said Watson. 

As Gulf nations continue diversification strategies and prioritize digital transformation, sectors like technology, energy, and infrastructure are expected to drive further M&A growth. Saudi Arabia and the UAE’s proactive policies and substantial sovereign wealth fund activity position the region as a global investment hotspot. 

Topics: Saudi Arabia UAE MENA EY Merger and acquisitions

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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 28 min 36 sec ago
Arab News
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Craig Smith explores the media’s role in AI conversations

Craig Smith explores the media’s role in AI conversations
Updated 28 min 36 sec ago
Arab News

RIYADH: The media’s primary role is to translate complex ideas into digestible content for the public, said Craig Smith, host of the Eye on AI podcast and a former correspondent.

In a recent conversation with the Saudi Data and Artificial Intelligence Authority’s GAIN podcast, Smith discussed the rapidly evolving field of artificial intelligence and the challenges media faces in accurately covering it amid both excitement and misinformation.

“You can put AI in a robot, but robotics is one field, and AI is another,” Smith explained, stressing the need for more precise portrayals of AI in the media.

As AI discussions have intensified in the past two years, particularly around its potential threats, Smith emphasized that these debates are meant to encourage further research into AI safety and prompt regulation. However, he noted that the popular press often misinterprets the purpose of these discussions, leading to sensational headlines that contribute to widespread fear.

“The purpose of that discussion is to generate more research around the safety of AI and to spur regulation to get the governments looking at what’s happening,” Smith said.

“But the media often misses this goal, resulting in alarmist narratives like AI will ‘kill us all,’ which detracts from the vital work of understanding and regulating this technology.”

While it’s easy to imagine a dystopian future for AI, Smith pointed out the far more nuanced reality. “We’re still working on getting large language models to be truthful and stop spouting nonsense,” he said, illustrating the long and challenging path ahead in developing reliable AI systems.

Reflecting on the rapid pace of change in the field, Smith highlighted the exciting progress in AI research, particularly since the introduction of the transformer algorithm in 2017.

“It was Ilya Sutskever at OpenAI who built a model around the transformer algorithm and scaled it up,” Smith noted, acknowledging the profound impact this algorithm has had on the development of large language models like ChatGPT and Claude.

Smith’s insights underscored the media’s crucial responsibility in accurately covering AI. By bridging the gap between complex technological advancements and public understanding, journalists have the power to foster informed discussions that will ultimately shape the future of AI in society.

Topics: AI Media reporting content GAIN 2024 Eye On AI

Oman’s non-oil sector grows 4.2% in H1

Oman’s non-oil sector grows 4.2% in H1
Updated 17 November 2024
Nour El-Shaeri
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Oman’s non-oil sector grows 4.2% in H1

Oman’s non-oil sector grows 4.2% in H1
Updated 17 November 2024
Nour El-Shaeri

RIYADH: Oman’s non-oil sector experienced a 4.2 percent growth year on year in the first half of 2024, driven by the country’s strategic focus on economic diversification as outlined in its 10th Five-Year Plan (2021-2025).

In an interview with the state-run Oman News Agency, Nasser Al-Mawali, undersecretary of the Ministry of Economy, highlighted that this expansion marks significant progress in Oman’s efforts to reduce its dependency on oil revenues and build a more resilient economic base, in line with the objectives of Oman Vision 2040.

By mid-2024, the non-oil sector contributed 13.5 billion Omani rials ($35.1 billion) to the country’s gross domestic product, up from 13 billion rials during the same period in 2023. This sector now accounts for 72.2 percent of Oman’s GDP at constant prices.

Al-Mawali attributed the continued growth in non-oil activities to national programs aimed at accelerating economic diversification and expanding the productive capacity of the economy. The 10th Five-Year Plan, which forms the first phase of Oman Vision 2040, prioritizes increasing private sector participation, supporting small and medium-sized enterprises, and broadening the country’s economic base.

According to Al-Mawali, strategic initiatives under this plan have reached a 90 percent implementation rate as of 2024, with major accomplishments in sectors such as green hydrogen, logistics, pharmaceuticals, and fisheries.

Foreign direct investment in Oman reached approximately 26 billion rials by mid-2024, up from about 17.8 billion rials at the end of 2021.

The country’s overall GDP, at constant prices, grew by 1.9 percent in the first half of 2024, rising from 18.4 billion rials to 18.7 billion rials compared to the same period in 2023. At current prices, GDP increased from 20.4 billion rials to nearly 21 billion rials.

While the non-oil sector posted strong growth, Oman’s oil sector experienced a 2.5 percent decline during the same period, primarily due to a 4 percent drop in crude oil production. On a more positive note, natural gas activities saw a 6.6 percent increase, providing a boost to the energy sector.

Al-Mawali emphasized that the rise in non-oil activities has helped provide a stable foundation for economic growth, buffering the country against fluctuations in global oil prices. Key projects, such as the Duqm Refinery and the development of the integrated economic zone in Al-Dhahirah in partnership with Saudi Arabia, have significantly bolstered Oman’s industrial capabilities and enhanced export potential.

The Duqm Refinery, inaugurated earlier in 2024, is expected to play a crucial role in increasing the manufacturing sector’s contribution to GDP.

Oman Vision 2040 targets an average annual GDP growth rate of 5 percent. So far, the country has achieved a growth rate of around 4.5 percent over the first three years of the 10th Five-Year Plan, indicating strong progress toward this goal.

The 10th Five-Year Plan also aims for an annual growth rate of 3.2 percent in the non-oil sector, with a long-term objective of increasing the sector’s contribution to GDP to 90 percent by 2040.

On a separate note, Oman’s banking sector saw positive growth in the first half of 2024, with total credit rising by 5 percent, reaching 32 billion rials by the end of September. Credit extended to the private sector increased by 4.2 percent, amounting to 26.7 billion Omani rials.

The majority of this credit was allocated to non-financial corporations, which accounted for 45.2 percent, followed by individual borrowers at 45 percent. Financial corporations received 6.3 percent, and other sectors made up the remaining 3.5 percent.

Total deposits in Oman’s banking sector grew by 13.7 percent, reaching 31.6 billion rials as of September. Private sector deposits saw a significant increase of 12.7 percent, totaling 20.7 billion Omani rials.

According to the Central Bank of Oman, individuals held the largest share of private sector deposits at 50.2 percent, followed by non-financial corporations at 29.5 percent, and financial corporations at 17.8 percent. Other sectors accounted for 2.5 percent of the total private sector deposits.

Topics: Oman

Saudi Arabia’s non-oil economy to grow 4.4% in 2025: PwC

Saudi Arabia’s non-oil economy to grow 4.4% in 2025: PwC
Updated 17 November 2024
Nirmal Narayanan
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Saudi Arabia’s non-oil economy to grow 4.4% in 2025: PwC

Saudi Arabia’s non-oil economy to grow 4.4% in 2025: PwC
  • Kingdom’s non-oil economy expanded by 3.8% in first half of 2024
  • Saudi Arabia is aligning its economic diversification efforts with sustainability goals
Updated 17 November 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s non-oil economy is expected to grow by 4.4 percent in 2025 as the Kingdom continues its path toward economic diversification, according to a new analysis. 

In its latest report, professional services firm PwC Middle East said Saudi Arabia is aligning its economic diversification efforts with sustainability goals, including achieving net-zero emissions by 2060. 

In the first half of the year, the Kingdom’s non-oil economy expanded by 3.8 percent, with the non-energy private sector seeing a 4.9 percent growth in the second quarter, it added. 

Strengthening the non-oil private sector is a core objective of Saudi Arabia’s Vision 2030 program, which aims to reduce the Kingdom’s dependence on oil revenues. 

“Saudi Arabia’s transformational journey combines economic diversification with sustainable growth. The expansion of renewable energy, focus on advanced industries, and vision for a green future highlight the Kingdom’s commitment to its national goals and its role in the global energy transition,” said Riyadh Al-Najjar, Middle East chairman of the board and Saudi Arabia senior partner at PwC Middle East. 

PwC said the Kingdom’s trade and hospitality sectors grew by 6.4 percent year on year in the first half of the year, while transport and communications, and finance and business services also posted positive growth of 4.8 percent and 3.8 percent, respectively. 

The report noted Saudi Arabia’s progress in the electric vehicle sector, with significant investments in EV manufacturing. 

The Kingdom is building a hub in King Abdullah Economic City to produce 150,000 vehicles by 2026 and 500,000 by 2030. 

The Saudi government is expanding EV infrastructure through the Electric Vehicle Infrastructure Co., a joint venture between the Public Investment Fund and Saudi Electricity Co., to install 5,000 fast chargers by 2030. 

“Saudi Arabia’s drive toward a diversified and sustainable economy showcases its adaptability and resilience. These efforts reflect our nation’s commitment to a greener future and set a benchmark for global energy transition,” said Faisal Al-Sarraj, deputy country senior partner in Saudi Arabia and PwC Middle East consulting clients and markets leader. 

In October, Moody’s projected that Saudi Arabia’s non-hydrocarbon real GDP would grow by 5 percent to 5.5 percent from 2025 to 2027, driven by increased government spending. 

The International Monetary Fund also projected Saudi Arabia’s economy to grow by 4.6 percent in 2025, largely driven by the Kingdom’s diversification strategy and the expansion of the non-oil private sector. 

Topics: Saudi Arabia PwC Middle East saudi non-oil energy

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Saudi Arabia, Tunisia sign deal to boost bilateral investments

Saudi Arabia, Tunisia sign deal to boost bilateral investments
Updated 17 November 2024
Nadin Hassan 
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Saudi Arabia, Tunisia sign deal to boost bilateral investments

Saudi Arabia, Tunisia sign deal to boost bilateral investments
  • Deal focuses on sharing regulations and laws to enhance investment environment in both countries
  • Talks covered several sectors of mutual interest, including industry, transport, and logistics
Updated 17 November 2024
Nadin Hassan 

RIYADH: Saudi Arabia and Tunisia have signed a memorandum of understanding to strengthen bilateral cooperation and promote direct investments between the two nations. 

The deal, which was inked by Saudi Minister of Investment Khalid Al-Falih and Tunisian Minister of Economy and Planning Samir Abdel Hafeez in Tunis, focuses on sharing regulations and laws to enhance the investment environment in both countries. 

The agreement, which also aims to improve investment opportunities, was discussed during a meeting attended by Saudi Ambassador to Tunisia Abdulaziz bin Ali Al-Saqr. The talks covered several sectors of mutual interest, including industry, transport, and logistics, with a focus on enhancing collaboration and facilitating joint ventures, the Saudi Press Agency reported. 

Tunisian President Kais Saied welcomed Al-Falih, where the Saudi minister conveyed greetings from King Salman and Crown Prince Mohammed bin Salman, expressing the Kingdom’s commitment to Tunisia’s ongoing progress and stability.  

Saied thanked Saudi Arabia for its leadership role in the Arab and Islamic worlds, praising the Kingdom’s efforts in fostering regional unity and development. 

He added that the agreement marked a significant step in strengthening economic ties between the two countries, with the MoU serving as a catalyst for joint development initiatives. 

The deal follows recent discussions on strengthening industrial and economic cooperation.  

In October, Saudi Vice Minister of Industry Affairs Khalil bin Salamah confirmed to Arab News that collaboration with Tunisia was imminent, noting that the two countries were in the process of selecting key sectors, such as pharmaceuticals and automotive components, for initial investments. 

He emphasized the need for common policies among Arab nations to serve as a foundation for regional collaboration across various industrial sectors. 

On the sidelines of the Multilateral Industrial Policy Forum in Riyadh las month, Tunisian Minister of Industry, Mines, and Energy Fatma Thabet Chiboub also pointed out that Tunisia’s distinctive mining resources presented significant opportunities for Saudi investors.  

She emphasized the automotive components and pharmaceutical industries as key areas for potential collaboration, while also expressing concern that the current level of investment from Saudi Arabia did not fully reflect the bilateral relationship’s potential. 

The MoU is seen as a crucial step in deepening the economic and industrial ties between Saudi Arabia and Tunisia, both of which are looking to diversify their economies and create new growth opportunities through strategic partnerships.
 

Topics: maiin Saudi Tunisia Investment MoU

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