Diriyah signs agreements worth over $700m at PIF forum

Special Jerry Inzerillo, Group CEO of the Diriyah Gate Development Authority, during an interview with Arab News. Photo by Huda Bashatah
Jerry Inzerillo, Group CEO of the Diriyah Gate Development Authority, during an interview with Arab News. Photo by Huda Bashatah
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Updated 08 February 2024
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Diriyah signs agreements worth over $700m at PIF forum

Diriyah signs agreements worth over $700m at PIF forum

RIYADH: Riyadh will witness a surge in the entertainment, leisure and tourism sectors, with Diriyah Co. aiming to break ground on 11 new assets by the end of 2024.

In the first step toward this endeavor, the company signed two agreements on the sidelines of the Public Investment Fund’s Private Sector Forum. 

Speaking to Arab News, Jerry Inzerillo, Group CEO of the Diriyah Gate Development Authority, outlined that the firm’s agreement worth SR700 million ($186 million) with Saudi Constructioneers Ltd., known as Saudi Co., entails the development of the Ritz-Carlton residences.

The second deal, worth SR2 billion, was inked with Al-Ayuni Investment and Contracting Co. for infrastructure development. 

Inzerillo affirmed that this is a testament to the fact that the company is “moving very, very fast along” and will open assets, announce and break ground every year “until we pull off the most spectacular EXPO the world has seen in 2030.”

The executive said that among the 11 upcoming initiatives in 2024 is the King Salman Boulevard, which he deemed Saudi Arabia’s version of Paris’ Champs-Elysees. It will be revealed this December.

“This will have a new contemporary art museum, one of the most beautiful museums in the world. Our version of the Sydney Opera House, the new King Salman Mosque. It will take a while to build it but we will show that blueprint in December of this year,” he said. 

In December of each year, the company holds its “Bashayer” event to announce its upcoming initiatives. The last meeting saw the unveiling of the Diriyah Art Futures museum, which the executive noted will “have its first exhibit shortly.”

Since then, the company has opened 9 km of parks in order to “fulfill His Royal Highness (the crown prince’s) vision of having all Saudis outside enjoying the weather, bicycling, horseback riding, skateboarding, walking, jogging, even picnicking with families. So we did nine km of parks. We’ve planted 6 million trees and bushes and shrubs in the wadi, all with smart city technology and we opened up our community center,” said Inzerillo. 

He added: “We opened up our sales center for the residences, and we already put 106 of our new Ritz-Carlton villas on sale, which sold very well. We introduced our new Wadi Spa residential community in what is for our district. We finished nine of the 27-hole golf course, the Greg Norman Golf Course, so we did a lot in one year. Wait to see what we do by this December.”

Outlining the importance of the private sector in bringing giga-projects like Diriyah to fruition, Inzerillo recapped that while the government will fund these projects “to get them going,” the commercial opportunities available through these projects around the Kingdom are “quite substantial.”

Thus, this year, the company intends to allocate more than $3 billion in contracts, predominantly focusing on the infrastructure and design engineering fields, as mentioned during his participation in a panel discussion at the forum.

Furthermore, he noted that several significant projects would be listed on the Saudi Stock Exchange, Tadawul, “at some particular point,” adding that Diriyah has mainly garnered “very good private sector support” from Saudi and Gulf countries. 

“Assets that have high commercial returns, hotels, restaurants, retail, residential, we’re seeing great interest from the private sector,” he said. 


Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister

Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister
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Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister

Saudi Arabia to automate 40% of its electricity distribution network by 2025: Minister

RIYADH: Saudi Arabia is working to automate 40 percent of its electricity distribution network by the end of 2025, having already achieved 32 percent of this target, according to the minister of energy.

Prince Abdulaziz bin Salman made the announcement at the opening of the 12th Saudi Arabia Smart Grid 2024 Conference in Riyadh, held under the theme “Energy and Sustainability.”

Automating an electricity distribution network uses technologies like smart meters and real-time monitoring to improve efficiency, and also facilitates the integration of renewable energy – which aligns with Vision 2030 goals of producing 50 percent of the Kingdom’s electricity using renewable sources.

In his opening remarks, Prince Abdulaziz highlighted the key role of smart grid technologies in transforming energy systems, focusing on smart meters, automation, and enhanced communication to improve electricity production, transmission, and consumption.

The minister highlighted Saudi Arabia’s progress under Vision 2030 saying: “More than 11 million smart meters have been installed across the Kingdom since 2021, contributing to improved energy consumption efficiency and enabling consumers to track their consumption in real time through smart applications, thereby enhancing their ability to make more informed decisions about electricity conservation.”

This large-scale deployment has empowered consumers with the ability to monitor their real-time energy consumption through advanced applications, enabling them to make informed decisions to optimize electricity use and promote energy conservation, SPA reported.

Similar efforts were seen in different nations in the Gulf Cooperation Council with the UAE’s Dubai Electricity and Water Authority and Qatar’s Kahramaa advancing smart grid initiatives to enhance energy infrastructure. 

DEWA’s multi-billion project integrates AI, blockchain, and IoT for seamless communication and automation, supporting smart city goals. Meanwhile, Kahramaa’s smart meters, covering 450,000 units, improve monitoring, reduce operational costs, and support sustainability by optimizing energy use and integrating clean energy.

Discussing automation efforts, Prince Abdulaziz revealed that the ministry is advancing plans to establish nine advanced control centers by 2026. 

These centers will be equipped with state-of-the-art technologies to enable real-time monitoring and precision management of the electricity distribution network. 

These developments aim to enhance network stability and performance, ensuring Saudi Arabia remains at the forefront of technological innovation in energy management. 

The minister also addressed the challenges posed by renewable energy sources, particularly their sensitivity to weather conditions. To mitigate these challenges and maintain grid reliability, the Kingdom is enhancing its energy storage capabilities.

Current plans target a battery storage capacity of 26 gigawatt-hours, with the goal of increasing this to 48 GWh by 2030.

Regarding the efforts to enhance the stability and efficiency of the national grid, which is the largest in the Middle East and Africa, the minister said: “We continue to expand transmission and distribution networks and develop flexible transmission system technologies that contribute to enhancing energy exchange and reducing losses.”

He added: “Additionally, four regional control centers have been established, along with a national control center, whose advanced systems enable efficient monitoring and operation of the networks, thereby strengthening the security and resilience of the electrical grid.”

Following the inauguration of the conference, Prince Abdulaziz oversaw the signing of several agreements and memorandums of understanding aimed at further advancing energy solutions across the Kingdom. 

He also honored the winners of the Energy Hackathon, which saw participation from more than 60 participants. The contestants presented creative and innovative projects focused on energy storage efficiency and sustainability, reflecting the growing emphasis on nurturing talent and fostering innovation in the energy sector.

The three-day conference is set to host discussions on over 40 scientific papers, showcasing the latest research, technologies, and sustainable solutions in the field of smart grids. 

These talks will spotlight the role of smart grid systems in enabling digital transformation, enhancing renewable energy solutions, and creating new opportunities for private sector participation.

Launched in Jeddah in 2011, SASG began as the first specialized event on smart grid technologies with global participation. Now an annual fixture in Saudi Arabia, it has attracted over 55,000 participants and 280 sponsors and exhibitors, offering a platform to showcase products, services, and innovations.


Oil Updates — prices nudge down on demand concerns, focus on Fed meeting 

Oil Updates — prices nudge down on demand concerns, focus on Fed meeting 
Updated 17 December 2024
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Oil Updates — prices nudge down on demand concerns, focus on Fed meeting 

Oil Updates — prices nudge down on demand concerns, focus on Fed meeting 

BEIJING/SINGAPORE: Oil prices eased further on Tuesday as China’s economic data renewed demand concerns, while investors remained cautious ahead of the US Federal Reserve’s interest rate decision, according to Reuters. 

US West Texas Intermediate crude was down 11 cents at $70.60 a barrel at 07:09 a.m. Saudi time, while Brent crude futures fell 6 cents to $73.85 a barrel. 

Prices were “weighed on by profit-taking after last week’s 6 percent rally and a batch of disappointing Chinese economic data yesterday,” IG market analyst Tony Sycamore said. 

On Monday, prices fell from multi-week highs on unexpected weakness in consumer spending data from China, despite strength in industrial output, and as investors moved into a holding pattern ahead of the Fed's meeting. 

The Fed will hold its last policy meeting of the year on Tuesday and Wednesday, where it is widely expected to cut interest rates by a quarter of a percentage point. 

The meeting will also shed light on how much further officials think they will cut interest rates in 2025 and 2026, and whether the central bank will scale back easing in anticipation of higher inflation under the incoming Trump administration. 

“A 25 basis point cut has already been priced in by the market, so any surprises (from the Fed meeting) may move the market,” said Anh Pham, a LSEG analyst. 

Lower interest rates can boost economic growth and demand for oil. 

The oil outlook for next year is clouded by growing supplies from non-OPEC+ countries such as the US and Brazil and slowing demand, chiefly in China. 

The International Energy Agency said in its monthly report last week that even as producer group OPEC+ kept its output cuts in place, there will be a supply overhang of 950,000 barrels per day next year — almost 1 percent of world supply. 

On Monday, the European Commission announced a 15th package of EU sanctions against Russia over its invasion of Ukraine, including tougher measures against Chinese entities and more vessels from Moscow’s so-called “shadow fleet” that are not regulated or insured by conventional Western providers. 

A group of Western countries will begin to check insurance documents of Russia’s shadow fleet of vessels in the English Channel, Danish straits, Gulf of Finland and the sound between Sweden and Denmark. 

The new EU sanctions are unlikely to translate to “real” disruption as most flows now do not use Western services, so they will not be disrupted, said LSEG’s Pham. 


Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Saudi Arabia’s supply chain conference drives $2.2bn in new investments
Updated 16 December 2024
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Saudi Arabia’s supply chain conference drives $2.2bn in new investments

Saudi Arabia’s supply chain conference drives $2.2bn in new investments

RIYADH: The Supply Chain and Logistics Conference in Saudi Arabia, which wrapped up on Dec. 16 in Riyadh, saw the signing of 91 agreements totaling SR8.3 billion ($2.2 billion). The two-day event, held under the patronage of Minister of Transport and Logistics Saleh Al-Jasser, focused on optimizing supply chain performance, improving logistics efficiency, and exploring new investment opportunities — all aligned with the Kingdom’s Vision 2030 strategy.

The conference brought together key stakeholders, including ministers, senior officials, top executives, and representatives from both local and international organizations, to discuss the latest advancements in supply chain management and global logistics trends.

In addition to the agreements, the event featured an exhibition with 65 participating companies and hosted eight specialized workshops. These sessions covered a broad spectrum of topics aimed at enhancing supply chain operations and adapting to evolving logistics demands.

One of the standout features of the conference was the Innovation and Entrepreneurship Corner, which displayed cutting-edge technologies such as a solar-powered vehicle and integrated platforms designed to streamline shipping and warehouse management for e-commerce businesses and retailers. These innovations aim to empower logistics teams and enhance omnichannel sales strategies.

A major theme of the discussions was the Kingdom’s progress in enhancing its supply chains and logistics infrastructure, which has become a vital component of Saudi Arabia’s drive for global competitiveness.

Key areas of focus included the role of artificial intelligence, data analytics, and digital innovation in strengthening the logistics sector and supporting the country’s broader economic objectives.

The importance of Saudi Arabia’s transport infrastructure, especially its extensive road network, was also emphasized as a fundamental asset in advancing logistics operations.

The conference aimed to solidify Saudi Arabia’s position as a leading global logistics hub, facilitating trade across Asia, Africa, and Europe. It also emphasized the development of export strategies to boost economic growth, foster collaboration between the public and private sectors, and highlight the Kingdom’s expanding role in global supply chain networks.

Through initiatives like these, Saudi Arabia continues to enhance its strategic importance as a central player in international trade and logistics.


Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 
Updated 16 December 2024
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Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 

Saudi Arabia’s payments industry poised for $21.7bn revenue by 2028: BCG 

RIYADH: Saudi Arabia’s payments industry is experiencing strong growth, with total revenues expected to reach $21.7 billion by 2028, according to a new report by Boston Consulting Group. 

The sector’s expansion is driven by the Kingdom’s focus on digital transformation, fintech adoption, and efforts to improve financial accessibility. 

The Kingdom’s payments revenues grew from $10.3 billion in 2018 to $16.2 billion in 2023, reflecting a compound annual growth rate of 9.4 percent. By 2028, this figure is projected to grow by another 34 percent. Additionally, transaction volumes are forecasted to surge by 68 percent, from 11.3 billion in 2023 to 19 billion by 2028. 

These developments highlight Saudi Arabia as a leader in the Gulf Cooperation Council payments sector and a key driver of the Middle East’s projected 7 percent CAGR for payments revenue through 2028. 

“Saudi Arabia’s payments industry is moving toward a balanced model that integrates rapid growth with sustainable resilience,” said Lukasz Rey, managing director, partner and head of the Middle East Financial Institutions Practice at Boston Consulting Group.

“To achieve this, Saudi firms must prioritize scalable, modular infrastructures that optimize operational flexibility while reducing technology overhead. Incorporating generative AI (artificial intelligence) can elevate customer service, streamline fraud detection, and drive efficiency at scale, which are essential factors as the market matures,” she added. 

Rey went on to say that as regulatory scrutiny intensifies, companies that proactively embed risk management and compliance into their core technology will set the standard for delivering secure, innovative services that meet the high expectations of both customers and stakeholders in an evolving sector.

While Saudi Arabia and the broader Middle East region remain growth hotspots, the report highlights a significant global slowdown in the payments industry. 

Global payments revenue is expected to see a CAGR of 5 percent through 2028 — just over half of the 9 percent rate achieved over the past five years. 

The global revenue pool is expected to increase from $1.8 trillion in 2023 to $2.3 trillion by 2028. 

North America and Europe are set to experience the steepest slowdowns, with annual revenue growth of just 3 percent. 

In contrast, emerging markets such as the Middle East, Latin America, and Asia-Pacific are forecasted to see stronger development, driven by the accelerating adoption of digital payments. 

As global payments markets face increasing regulatory scrutiny, technological disruptions, and evolving customer expectations, the Kingdom is well-positioned to sustain its growth trajectory through continued innovation. 

Saudi Arabia’s efforts to modernize its payments infrastructure, expand digital payments adoption, and integrate new technologies like generative AI will play a key role in its long-term success. 

“With transaction volumes in Saudi Arabia set to increase by 68 percent by 2028, the payments sector is a regional leader in growth potential,” said Bhavya Kumar, managing director and partner at Boston Consulting Group.  

“Capturing this value, however, will require firms to build flexible, API-driven infrastructures that integrate seamlessly into digital ecosystems. By adopting agile methods and focusing on regulatory alignment, Saudi firms can adapt quickly to shifting consumer expectations and market demands,” he explained. 

“The companies that strategically invest in scalable technology and embrace a disciplined approach to risk management will distinguish themselves, fostering a resilient framework that drives sustainable success within Saudi Arabia’s dynamic payments industry,” Kumar added. 


Saudi Arabia to develop local talent for container shipping industry

Saudi Arabia to develop local talent for container shipping industry
Updated 16 December 2024
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Saudi Arabia to develop local talent for container shipping industry

Saudi Arabia to develop local talent for container shipping industry
  • Supply Chain and Logistics Conference brought together leading figures from the maritime and logistics sectors
  • It explored the Kingdom’s opportunities as a global trade gateway

RIYADH: Saudi Arabia must cultivate local talent in the container shipping industry to fully achieve its Vision 2030 ambitions and solidify its position as a global logistics hub, said a senior executive. 

Speaking at a panel discussion during the sixth edition of the Supply Chain and Logistics Conference in Riyadh, Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime, highlighted the need for specialized expertise in the container sector.

“We have a strong focus on not just diversification, but also on Saudi talent. These are some of the things that we have had to hire experts from outside the Kingdom, but eventually, we hope to replace them with qualified young people from within Saudi Arabia,” Hestbaek said. 

Poul Hestbaek, the CEO of Riyadh-based logistics service company Folk Maritime. Screenshot

He continued: “If the day comes when I have to retire and I am replaced by a Saudi, that would make me really, really happy. So, I think talent is something we will be working on.” 

Hestbaek also highlighted the crucial role of collaboration in developing the Kingdom’s maritime industry, saying, “You cannot pull this off alone. It’s clear you depend on collaboration.” 

He added, “Whether it is partnering with Maersk, King Abdullah Port, or others, the better experts you bring, the better product you can offer.” 

The session brought together leading figures from the maritime and logistics sectors, who explored the Kingdom’s opportunities as a global trade gateway. 

Jay New, the CEO of King Abdullah Port, emphasized Saudi Arabia’s unique geographical advantages and infrastructure and said “30 percent of all containers sail past the Red Sea every day.

“The expansion opportunities for King Abdullah Port northbound along the Red Sea are limitless. You could build a port as big as you would ever want globally,” New said. 

Jay New, the CEO of King Abdullah Port. Screenshot

He added that King Abdullah Port was designed to accommodate future growth, with deep-water berths, linear quays, and cutting-edge automation. 

“In 2021, the World Bank recognized King Abdullah Port as the world’s most efficient port,” New said. 

He added, “King Abdullah Port will remain a consistently high-performing port for the future. This should last for decades, and this allows King Abdullah Port, on behalf of Saudi Arabia in many ways, to attract the main shipping lines into the port.” 

He further said: “This provides Saudi Arabia, Saudi cargo owners, cargo exporters, and cargo importers with access to the biggest ships in the world that serve the main trade routes from Asia to Saudi Arabia, and from Europe and America to Saudi Arabia.” 

Mohammad Shihab, managing director of Maersk Saudi Arabia. Screenshot

During the panel discussion, Mohammad Shihab, managing director of Maersk Saudi Arabia, stressed the dramatic improvements in customs clearance processes over the past decade. 

“Nine years ago, clearing cargo could take more than a week — sometimes up to 14 days. Today, many shipments are cleared in hours, with an average of one day for a large percentage of imports,” he said. 

Shihab added that these advancements make Saudi Arabia increasingly competitive as a transshipment hub. 

“The focus on infrastructure development and digital solutions has significantly enhanced the Kingdom’s position on global trade routes. The ability to clear cargo quickly benefits importers, exporters, and the local economy,” Shihab said. 

Turki Alkhorayef, general manager of Ports and Maritime Services at ELM. Screenshot

Technology was another key focus of the discussion. Turki Alkhorayef, general manager of Ports and Maritime Services at ELM, outlined how digital transformation is boosting efficiency in the logistics sector. 

“We are leveraging artificial intelligence, the Internet of Things, and real-time tracking to provide live updates on vessel arrivals, cargo movements, and port activities,” Alkhorayef said. 

The panel concluded with a consensus that investing in local talent, infrastructure, and advanced technology will be critical to achieving Vision 2030 goals. 

By fostering collaboration and ensuring Saudi nationals are trained to lead the industry, the Kingdom is poised to emerge as a dominant player in the global maritime and logistics sectors.