Saudi Arabia using ‘idle assets’ to drive future, economy minister tells Davos
Kingdom’s playbook ‘all about bold movement,’ Faisal Alibrahim says
Long-term view critical for tackling issues like climate change, he says
Updated 17 January 2024
Arab News
RIYADH: Saudi Arabia is seeking better ways to exploit its resources and assets, Minister of Economy and Planning Faisal Alibrahim said at the World Economic Forum in Davos on Wednesday.
“We’ve looked at the vast, valuable yet idle assets and have started thinking about how we can mobilize them for the betterment and in contribution to our national objectives,” he told a panel discussion titled Investors of First Resort: Government Inc.
The event was moderated by WEF Managing Director Saadia Zahidi and featured several high-level speakers, including Singapore’s President Tharman Shanmugaratnam. It looked at how government investment is transforming the global economic landscape.
Alibrahim said governments recognized the need to mobilize their assets and capabilities more effectively, especially in response to recent global crises, and saw the need for greater collaboration with the private sector as vital to achieving national objectives.
A long-term view was critical for tackling issues like climate change and technological innovation, he said.
The minister also spoke about Vision 2030 — Saudi Arabia’s ambitious plan for economic diversification, global engagement and enhanced quality of life — and stressed the importance of investing in human capital, including education, healthcare and international partnerships, such as the Kingdom’s successful collaboration with Singapore on strengthening public sector capabilities.
“Saudi Arabia has a playbook that everyone is looking into, and this playbook is all about bold movement, learning by doing and global collaboration,” Alibrahim said.
He pointed to the Public Investment Fund as a prime example of using idle assets for national development, noting its dual focus on generating returns and stimulating development.
“We wanted to accelerate our diversification quickly. We went in and created the environment in several sectors,” he said.
“We prioritized 13 sectors that created the conditions for profitability. PIF has deployed the largest fresh capital in 2023, over $35 billion.”
He concluded by highlighting the need for international cooperation in areas like green energy and the importance of joint efforts in leading future technological advancements.
Startups of the Year: eyewa and Lean Technologies attract top US investors to Mideast
Updated 48 sec ago
Nour El-Shaeri
RIYADH: Saudi startups eyewa and Lean Technologies have set a new benchmark in attracting international investment and driving innovation across the Middle East in 2024.
Operating in the retail and fintech sectors, respectively, these companies have secured significant funding rounds and reached major milestones, cementing their roles as pivotal players in the region’s entrepreneurial ecosystem.
The future of eyewear
Dual-headquartered in the UAE and Saudi Arabia, eyewa had a landmark year in 2024. The company surpassed 150 stores across the Middle East and secured its largest funding round to date — $100 million — led by General Atlantic, a leading global growth investor based in the US.
In an interview with Arab News, co-founder and co-CEO of eyewa Anass Boumediene emphasized the importance of these milestones, saying: “Investment from such a major international growth equity firm clearly highlights the strength of our business model.”
He added that eyewa’s rapid expansion is part of a broader strategy to reach 250 stores by the end of 2025.
Customer feedback has been central to eyewa’s success, helping the company navigate challenges in its competitive market. “Our first step in mitigating challenges has always been to listen to what we are being told by our customers,” Boumediene said.
Drawing from this feedback, the company invested in advanced technological solutions to improve the customer experience. Notable innovations include AI-assisted eye exams for more accurate prescriptions and augmented reality features that allow customers to try on glasses virtually via eyewa’s website and app.
Boumediene added: “These innovations have allowed us to bridge the gap between in-store and online experiences, making eyewear shopping more accessible and convenient.”
The founders of eyewa, with Anass Boumediene on the right. Supplied
Eyewa’s Gulf-centric approach to product design and pricing sets it apart from global competitors. “We design our glasses specifically for people in the region, whereas our global competitors tend to follow the US or European trends,” Boumediene said.
Affordability is another key driver of eyewa’s success, with prescription glasses starting at $100 — half the average price in the GCC.
“Our designs and pricing are a major factor in the success of eyewa. People in the region really feel like they can connect with the brand at a variety of price points,” he explained.
Building a diverse and strong team has been integral to eyewa’s growth. The company now employs over 1,300 people from more than 50 nationalities, achieving gender parity, with just over 50 percent of its workforce being female.
Boumediene highlighted eyewa’s approach to talent development, saying that optometrists have clear career paths, whether technical or managerial. “Our retail director, who leads our retail operations, is an optometrist,” he added, underscoring the company’s commitment to internal growth.
Looking ahead to 2025, eyewa plans to open an additional 100 stores and establish a production and fulfillment hub in Riyadh. Boumediene described the hub as a game-changer: “It will allow us to deliver bespoke products to customers within 24 hours, the fastest service in the region.”
He further noted that the Middle East’s young population and rapidly growing economies will continue to fuel demand for eyewear, positioning eyewa to capitalize on these trends.
Powering fintech
Lean Technologies, one of the Middle East’s leading fintech infrastructure startups, marked 2024 as a year of milestones, growth, and impact.
Hisham Al-Falih, CEO of Lean Technologies, told Arab News: “This year, two milestones stand out. The first, and perhaps the most visible, is our Series B funding round of $67.5 million, led by General Catalyst with participation from Bain Capital Ventures, Stanley Druckenmiller, Arbor Ventures, and other top-tier investors.”
Al-Falih emphasized that the funding round was not just significant for the capital raised, but also for the caliber of investors backing Lean. “It’s a reflection of the potential they see in the region,” he said, calling it a standout moment for the fintech industry.
Hisham Al-Falih, CEO of Lean Technologies. Supplied
Al-Falih also shared the significance of seeing team members celebrate their five-year anniversaries. “For a company just over five years old, this is deeply meaningful. It highlights the enduring commitment of the people who helped shape Lean from the beginning and continue to drive its mission forward.”
Operating at the intersection of banks, third-party providers, regulators, and millions of end-users, Lean Technologies faces unique challenges in balancing innovation, compliance, and reliability. “This year was particularly challenging as both Saudi Arabia and the UAE accelerated their Open Banking and Open Finance initiatives,” Al-Falih explained.
In this regulatory landscape, Lean played a key role in helping shape the frameworks while maintaining its commitment to clients and end-users. “It’s been a demanding but rewarding process—one that underscores our responsibility not just as a company, but as a critical enabler for the entire ecosystem,” he added.
Lean’s customer-centric approach has been a defining factor in its success. “What sets Lean apart is our relentless focus on solving the most critical challenges faced by our clients and their end users,” Al-Falih noted.
By embedding itself within clients’ businesses, Lean ensures it understands their needs. “This proximity gives us the clarity to address current challenges while also anticipating future opportunities,” he said.
In the UAE, Lean’s account-to-account payment solutions processed over $2 billion in transaction volumes in 2024, streamlining pay-ins and payouts for major companies like e&, DAMAC, and Careem.
In Saudi Arabia, the company’s data solutions, operating under the Saudi Central Bank’s regulatory sandbox, have been leveraged by companies such as Tawuniya, ALJUF, and Salla, as well as Tabby and Tamara to unlock new use cases in insurance, lending, and marketplaces.
Al-Falih reflected on Lean’s growth, saying: “Surpassing our ambitious growth targets wasn’t just about numbers. It was about demonstrating what’s possible when a team is deeply aligned with the needs of its market and its clients.”
This alignment is rooted in Lean’s culture, which Al-Falih described as “the pursuit of greatness.” He explained: “This mindset drives our culture, and we’ve worked hard to create an environment where people can collaborate with exceptional colleagues, achieve remarkable outcomes, and receive the feedback they need to grow.”
Lean structures its approach through a framework called the “3 Spheres of Influence,” which emphasizes mastery of craft, collaboration, and integrity. “These principles encourage our team members to reflect and grow both individually and as part of the Lean team,” Al-Falih added, noting that this cultural foundation has been instrumental in the company’s success.
Looking ahead to 2025, Lean is well-positioned to capitalize on the rapid advancements in Open Banking in Saudi Arabia and Open Finance in the UAE. “For us, these frameworks represent the culmination of five years of hard work—lobbying, collaborating with regulators, and partnering with banks,” Al-Falih explained.
The company’s focus will be on making these initiatives a reality for the market. “Our priority is to seize the opportunities these frameworks create and help bring the vision of Open Banking and Open Finance to life,” he said.
Beyond regulatory developments, Lean is also exploring new ways to improve financial infrastructure for individuals and SMEs. “Our mission remains clear: to enable the next generation of financial innovation,” Al-Falih said, adding: “With the momentum we’ve built, we’re confident in our ability to continue scaling and delivering impact across the region.”
RIYADH: Saudi Aramco has reduced the official selling prices for propane and butane for January 2025.
According to an official statement on Tuesday, the price of propane was lowered by $10 per tonne, while butane saw a $15 per tonne reduction compared to the previous month.
Propane and butane are both types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as a feedstock in the petrochemical industry. These products have distinct boiling points, making them suitable for different applications.
Aramco’s OSPs for LPG are widely used as benchmarks for contracts supplying the product from the Middle East to the Asia-Pacific region.
Demand for propane typically increases during the winter months, as it is heavily utilized for home heating.
Such seasonal demand spikes can lead to price fluctuations, as supply and demand dynamics come into play. Higher demand during colder months often results in rising prices, reflecting the basic economic principle of supply and demand.
ACWA Power secures $703m for Egyptian wind power plant
Updated 36 min 48 sec ago
Nirmal Narayanan
RIYADH: Saudi utility giant ACWA Power has secured SR2.63 billion ($703 million) in financing to develop, operate, and maintain a 1,100-megawatt wind power plant in Egypt’s Suez governorate.
In a statement to Tadawul, the company said the funding was sourced from the European Bank for Reconstruction and Development, African Development Bank, and British International Investment.
Additional lenders include DEG Deutsche Investitions, the OPEC Fund for International Development, and Arab Petroleum Investments Corp., with a loan tenure of 20 years.
The project aligns with Egypt’s green energy ambitions, aiming to generate 42 percent of the nation’s electricity from renewable sources.
Principal debt for the project was financed by Standard Chartered Bank and Arab Bank through the European Bank for Reconstruction and Development’s B financing structure. The total investment cost of the plant is SR4.13 billion, with ACWA Power holding a 70 percent stake.
The firm plays a pivotal role in Saudi Arabia’s renewable energy strategy, contributing to the Kingdom’s goal of generating 50 percent of its power from green sources. The Tadawul-listed company’s operations span 13 countries, underscoring its global ambitions in the utility sector.
ACWA Power recently announced its entry into China, securing over 1 gigawatt of renewable energy projects. These initiatives, which include solar photovoltaic and wind energy, are jointly owned with leading Chinese renewable energy firms.
Earlier this month, ACWA Power launched three renewable projects in Uzbekistan, involving wind, solar, and battery storage, with a combined investment of $3 billion.
In October, the company signed four agreements worth SR6.69 billion during the Future Investment Initiative in Riyadh, targeting renewable energy and storage projects across the Gulf Cooperation Council region, China, Central Asia, and North Africa.
The firm’s net profit for the first nine months of 2024 rose 15.74 percent year on year to SR1.25 billion, driven by increased revenue from electricity sales and operation and maintenance activities.
Founded in 2004, ACWA Power manages a portfolio of 90 projects valued at SR94 billion, according to its website. The company continues to expand its footprint as a leader in renewable energy and utility services worldwide
Saudi Arabia, Canada to strengthen economic ties after high-level meeting
Updated 39 min 45 sec ago
Nadin Hassan
RIYADH: Economic cooperation was the focus of a high-level meeting between a top Saudi official and the Canadian Ambassador as relations between the nations continue to progress.
The Kingdom’s Minister of Economy and Planning Faisal Al-Ibrahim held talks with Jean-Philippe Linteau at his department’s headquarters in Riyadh, according to the Saudi Press Agency.
This meeting signifies a positive development in Saudi-Canadian relations, which were restored in May 2023 after a five-year diplomatic rift.
The restoration followed discussions between Saudi Crown Prince Mohammed bin Salman and Canadian Prime Minister Justin Trudeau on the sidelines of the Asia-Pacific Economic Cooperation forum in Bangkok in November 2022.
Since normalizing relations, Canada is keen to build a “great relationship” with the Kingdom, Linteau said during an interview with Arab News in February.
The recent meeting between Al-Ibrahim and the top diplomat reinforces their commitment to deepening cooperation and tackling mutual challenges.
In January, Saudi Arabia and Canada agreed to re-exchange trade delegations, aiming to improve economic relations and increase trade and investment volumes.
Hassan Al-Huwaizi, president of the Saudi Chambers of Commerce, emphasized that establishing a joint business council would provide a platform for business leaders to promote activities and engage in partnerships, facilitating continuous interaction and information exchange about market opportunities.
2024 marks Saudi Arabia’s bold leap toward technological leadership
Kingdom launched ALLaM, a generative AI model tailored specifically for the Arabic language
Technology also played a critical role during the Hajj season
Updated 31 min 7 sec ago
MIGUEL HADCHITY
RIYADH: Saudi Arabia’s digital transformation journey reached new heights in 2024, solidifying its position as a global leader in technology and innovation.
Guided by Vision 2030, the Kingdom continued to reshape its economic and social landscapes through extensive digital initiatives spanning government, the private sector, and international partnerships. From advancements in artificial intelligence to significant strides in the digital economy, Saudi Arabia’s achievements over the past year set the stage for even bolder ambitions in 2025.
Revolutionary achievements
One of the standout accomplishments of 2024 was the consolidation of government data. The creation of a centralized data lake integrated 27 large systems with over 322 systems in the National Data Bank. This initiative not only enhanced the quality of national data but also automated data-sharing processes, fostering collaboration across entities and delivering substantial cost savings.
Saudi Arabia also launched ALLaM, a generative AI model tailored specifically for the Arabic language. Integrated into IBM’s Watsonx platform, ALLaM was recognized as the leading generative AI model for Arabic, as measured by the Arabic MMLU benchmark. This innovation underscored the Kingdom’s commitment to preserving its cultural and linguistic heritage while advancing global AI standards.
“Saudi Arabia’s digital transformation initiatives, driven by Vision 2030, have created a strong foundation for the Kingdom to emerge as a global leader in technology and innovation,” said Louise Bou Rached, sales director for the Middle East, North Africa, and Turkiye region at Milestone Systems, in an interview with Arab News.
Louise Bou Rached, Sales Director, MENAT at Milestone Systems. Supplied
She continued: “The strategic focus on AI, IoT (Internet of Things), 5G, and cloud infrastructure is enabling the development of smart cities, digital governance, and innovative industries.”
Bou Rached highlighted initiatives like NEOM and The Line, which combine cutting-edge technology with sustainability to redefine urban living and attract global attention. “This transformation is enhancing the Kingdom’s international reputation and driving economic diversification, positioning Saudi Arabia as a model for other nations aspiring to achieve technological leadership,” she said.
A key element in this transformation has been the integration of advanced video management systems across smart city projects, improving security, efficiency, and data-driven decision making. “VMS technology ensures the seamless operation of urban environments and aligns with the Kingdom’s broader vision of fostering a secure and intelligent ecosystem,” Bou Rached added.
Technology also played a critical role during the Hajj season, with advanced AI solutions ensuring the safety and well-being of millions of pilgrims. Smart platforms like Basier and Sawaher deployed over 400 AI-linked cameras across key locations, including tunnels and the Jamarat facility. These systems provided real-time crowd density analysis, enabling authorities to address emergencies efficiently. This initiative marked a significant leap in combining AI with large-scale event management.
“Projects involving smart cities, artificial intelligence, and renewable energy are shaping new industries and lifestyles in Saudi Arabia,” said Arun Leslie John, the chief market analyst at Century Financial, in an interview with Arab News. Smart cities like NEOM, he noted, are redefining urban living with intelligent systems that optimize resource management, sustainability, and citizen engagement.
“AI is reshaping industries, from health care to logistics, by enabling predictive analytics, automating processes, and improving efficiency,” he added. John also pointed out that the implementation of Open RAN technology is “seriously changing the scene of the country’s telecommunications sector, offering flexible and cost-efficient network infrastructure, essential for extending 5G and upcoming 6G networks.”
“Companies specializing in such technologies can take advantage of the emergent demand for improved telecommunication solutions,” John said.
Arun Leslie John, Chief Market Analyst at Century Financial. Supplied
AI discussions
Saudi Arabia reinforced its position as a global AI leader by hosting the third Global AI Summit, which brought together world leaders, researchers, and industry experts to discuss ethics, developments, and the future of AI. The event emphasized the Kingdom’s commitment to becoming a hub for AI innovation.
The country also launched the Open Access National Gateway, providing scientists and researchers access to more than 1,000 advanced laboratories. This initiative bolstered Saudi Arabia’s ability to attract top talent, foster innovation, and drive scientific breakthroughs across various fields.
The establishment of the National Semiconductor Hub marked a significant milestone in the Kingdom’s drive for technological independence. Launched in partnership with top institutions like King Abdullah University of Science and Technology, the hub supports multiple initiatives, including a joint master’s program with the University of California and Princess Nourah University. Over 850 professionals were trained to localize semiconductor technology, further cementing Saudi Arabia’s place in the global tech landscape.
“Saudi Arabia’s investment in space exploration is about exploring the cosmos and leveraging satellite technology to advance telecommunications, agriculture, and disaster management. These advancements are driving diversification away from oil dependency, creating a high-tech economy that attracts global investments and cultivates homegrown innovation,” Bou Rached noted.
Saudi Arabia’s digital transformation efforts received global recognition in 2024. The Kingdom achieved several milestones such as securing the second place among G20 countries in the ICT Development Index and sixth place globally in the UN E-Government Development Index, climbing 25 positions.
These achievements underscored Saudi Arabia’s progress in delivering efficient, accessible, and citizen-centric digital services.
In the space sector, Saudi Arabia celebrated the graduation of 15 startups from the Space Tech Entrepreneurship Program, which offered financial support, training, and mentorship. This initiative attracted both domestic and international investments, highlighting the Kingdom’s growing influence in the space industry.
The Kingdom also secured over SR41 billion ($10.9 billion) in foreign and domestic investments in technology and data centers in 2024. These investments were complemented by enhancements to digital infrastructure, including efforts to localize emerging technologies and establish a thriving innovation ecosystem.
Notable initiatives included the Cloud First Policy, which prioritized cloud-based solutions across government entities and the expansion of 5G networks, positioning Saudi Arabia among the top 10 countries globally for mobile Internet speeds.
In March, the Kingdom unveiled an updated Digital Transformation Index, designed to elevate public sector adherence to technological advancements. The revised standards, reduced from 125 to 96, aimed to improve the quality of e-government services in line with Vision 2030. More than 233 entities participated in workshops to refine methodologies, contributing to an 85.53 percent overall progress rate in digital transformation.
‘Into New Worlds’
Scheduled for February 2025 in Riyadh, LEAP – the Kingdom’s premier tech-focused conference and exhibition – will bring together 1,000 expert speakers, 680 startups, and over 215,000 global attendees. Under the theme “Into New Worlds,” the event will explore cutting-edge technologies and their practical applications. The 2024 edition of LEAP surpassed previous ones, with agreements worth more than $12 billion being signed.
Greater achievements on the horizon
Saudi Arabia’s roadmap for 2025 builds on the transformative momentum of 2024, with ambitious plans designed to further elevate the Kingdom’s global standing in technology and innovation. In AI and data advancements, efforts will focus on increasing the number of datasets in the National Data Bank to improve accessibility and foster greater collaboration.
The adoption of AI across government entities will be further strengthened to stimulate innovation and improve service delivery. Expanding the scope of the National Smart Cities Platform will be a key priority, with an emphasis on security, safety, and sustainability, while introducing new use cases to enhance quality of life and environmental conservation.
In space exploration, Saudi Arabia plans to manufacture and launch a satellite dedicated to investigating space weather as part of the Artemis 2 mission to the moon. Economically, the Kingdom aims to bolster the ICT sector’s contribution to its gross domestic product by introducing two additional multibillion-dollar companies, bringing the total number of such companies to eight.
As 2025 unfolds, Saudi Arabia is poised to continue shaping the future of technology, creating growth opportunities, and enhancing the quality of life for its citizens. By building on its 2024 achievements, the Kingdom is well-positioned to realize its Vision 2030 goals and establish itself as a global leader in the digital era.
