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LEAP24 to witness $11.9bn tech investment deals, says minister

LEAP24 to witness $11.9bn tech investment deals, says minister
Minister of Communications and Information Technology Abdulla Al-Swaha.
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Updated 04 March 2024
Nadin Hassan
MANAL AL-BARAKATI
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LEAP24 to witness $11.9bn tech investment deals, says minister

LEAP24 to witness $11.9bn tech investment deals, says minister
Updated 04 March 2024
Nadin Hassan MANAL AL-BARAKATI
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RIYADH: Saudi Arabia’s international technology conference LEAP is set to witness $11.9 billion of investment deals over its three-day duration — eclipsing last year’s figure of $9 billion, according to a senior minister. 
During the opening remarks at the event, Minister of Communications and Information Technology Abdulla Al-Swaha highlighted that investments in generative artificial intelligence acceleration and cloud infrastructure sectors are set to be key benefactors from the funding blitz. 
The minister told those at the Riyadh-based gathering, which runs from March 4 to 7 and is the third edition of the event, that the Kingdom’s digital economy is “the most bold and audacious success story of the 21st century.” 
He added: “When it comes to resilience, while the whole world was facing headwinds when it comes to VC (venture capital) funding with negative 30 to 40 percent, the Kingdom, under His Royal Highness’s leadership, we adjusted the sail and changed the headwinds into tailwinds and we grew by 33 percent.” 
Al-Swaha highlighted a significant investment in regional cloud infrastructure in the preceding year, marking it as one of the sector’s most substantial and notable investments.  
Alongside this, he announced the introduction of Amazon Web Services in Saudi Arabia, establishing the Kingdom as the sole nation in the region hosting all key hyperscalers. 
Furthermore, AWS plans to establish an infrastructure region within the Kingdom by 2026, with the objective of providing support to developers, startups, entrepreneurs, and enterprises, as well as entities in healthcare, education, gaming, and nonprofit sectors. 
The minister also underlined the ongoing efforts, led by Crown Prince Mohammed bin Salman, and in collaboration with Saudi Aramco, to advance the diffusion of technologies and industries in the Kingdom. 
He announced Aramco’s largest industrial laboratory guidance model, METABRAIN, which aims to provide guidance and support to all industries in the Kingdom. 
“This LLM is powered by more than data — data for more than 90 years, with seven tokens of public and proprietary data. We aim to reach 1 trillion parameters by the end of today, starting with 250 parameters,” Al-Swaha stated.  
He continued: “Aramco is joining hands with one of the revolutionary technologies. I think it’s best to hear from the founders in this specific interview about how they’re doing that, aiming to build one of the largest AI inference capabilities for the industrial age.” 
In his keynote address, Aramco’s President and CEO Amin Nasser stressed his belief that METABRAIN will serve to increase productivity and growth as well as transform “the way we work.” 
Equipped with 90 years of exclusive data, the large language model is helping to analyze plans, get data as well as “historically drilling down cost and recommending options for downstream.” 
Last week, the energy giant announced a significant upward revision in the estimated reserves of gas and condensate in its Jafurah reserves. The CEO underscored that “this was made possible by combining advanced machine learning system together with the data gathered by our in-house experts.” 
During the event, Aramco also announced the establishment of the Saudi Accelerated Innovations Lab, or SAIL, a market-driven digital innovation engine with the first hub in Saudi Aramco and plans for national and global expansions. 
Commenting on this announcement, the CEO said: “Our goal is to create new digital products and digital ventures. An example is the Aramco IBM innovation strategic partnership, which through SAIL, is expected to be operational in early 2026.” 
According to the executive, Aramco and IBM will collaborate in areas such as cybersecurity, sustainability, circular economy, and material science. 
The global tech leader also unveiled plans for a software development lab to operate in Saudi Arabia. 
Arvind Krishna, chairman and CEO of IBM, said: “We have decided to open a software development lab where we are going to be harnessing the talent of the local population. We are going to build AI-based technologies here that we are then going to take into our global market. I think that is incredibly exciting.”  
As part of a series of announcements, Dell Technologies revealed plans to open a new merge and logistics fulfillment center, incorporating a second touch manufacturing facility in the Kingdom. 
The new center, based out of Riyadh, will handle all Dell product lines in Saudi Arabia, including notebooks, desktops, and servers, as well as, storage, and networking.  
Dell is also relocating its Flat Panel Monitor Hub to Riyadh, ensuring stocked inventory is delivered directly to customers with same-day or next-day shipments.  
The event also saw several announcements from international companies in the field of up-skilling, education, and training. 
Among them, UiPath, a global software company, announced the establishment of the “Saudi School of Automation,” the first in the region, aimed at training skills and nurturing Saudi talents.  
UiPath will cover automation fundamentals through advanced developments, culminating in a professional certificate. 
Similarly, an American cloud-scale company unveiled a partnership with the Saudi Digital Academy to establish a new academy in the Kingdom. 
Datadog’s Academy focuses on the latest trends and regional priorities, offering a range of programs, including certifications, in-person workshops, and online training, as highlighted by Alexis Le Quoc, the company’s CEO during the forum. 
Marking the third announcement of a new academy in the nation, ServiceNow’s CEO Bill McDermott revealed that the company will be opening a ‘ServiceNow Academy’ in the Kingdom. 
The institute aims to train thousands of Saudis in “digital skills related to this new generation platform,” he said.  
The company also emphasized that it will be launching its ServiceNow platform in Arabic later this month, featuring domain-specific LLMs capable of operating in the Arabic language. 
 

Topics: LEAP24

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Saudi Arabia’s Economic Council reviews outlook, approves key growth strategies

Saudi Arabia’s Economic Council reviews outlook, approves key growth strategies
Updated 59 min 59 sec ago
Reem Walid  
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Saudi Arabia’s Economic Council reviews outlook, approves key growth strategies

Saudi Arabia’s Economic Council reviews outlook, approves key growth strategies
Updated 59 min 59 sec ago
Reem Walid  

RIYADH: Saudi Arabia’s Council of Economic and Development Affairs reviewed the Kingdom’s economic outlook and strategies to address global challenges, offering recommendations to support growth and resilience.  

In a video conference meeting, the council began by reviewing the quarterly economic report from the Ministry of Economy and Planning, which highlighted key developments in both global and national economies, the Saudi Press Agency reported. 

This follows Saudi Arabia’s 2.8 percent economic growth in the third quarter of 2024, driven by strong performance in non-oil sectors, official data showed.  

The country’s non-oil sector expanded by 4.2 percent year-on-year, in line with Vision 2030’s goal to reduce dependence on oil, according to a recent report from the General Authority for Statistics. 

During the meeting, the council reviewed the Ministry of Finance’s third-quarter report on the performance of the state’s general budget for fiscal year 2024. The report provided a breakdown of financial performance through the third quarter, including indicators for revenues, expenditures, and public debt. 

The findings confirm the Kingdom’s ongoing support for development projects, its strengthening of social care and protection systems, and its commitment to implementing major initiatives under Vision 2030. 

The Ministry of Commerce also presented a report from the Permanent Committee for Price Monitoring during the third quarter of 2024, outlining the roles and tasks of the committee's participants. 

The report highlighted key developments, including global price trends, consumption patterns, and inflation indicators in the Kingdom. It also detailed consumer goods prices for the third quarter and the measures taken to ensure the availability of goods and maintain price stability. 

The meeting also covered several other topics and reports, including the National Export Strategy Project, the National Savings Strategy, and initiatives related to financial inclusion and education. 

Additionally, the council reviewed the third-quarter 2024 Real Estate Price Index, the executive summary of foreign trade for August 2024, the September 2024 Consumer Price Index report, and the Wholesale Price Index report for the same period. 

The meeting concluded with the council making necessary decisions and recommendations on all discussed matters. The council’s recommendations and decisions are set to guide the country’s economic trajectory in the coming months. 

Topics: Saudi economy budget

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Oman inflation at 0.8% in October: official data

Oman inflation at 0.8% in October: official data
Updated 01 December 2024
Nour El-Shaeri  
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Oman inflation at 0.8% in October: official data

Oman inflation at 0.8% in October: official data
Updated 01 December 2024
Nour El-Shaeri  

RIYADH: Oman’s inflation rate saw a modest 0.8 percent increase in October compared to the same month last year despite price increases across several categories, according to an official report.  

The National Center for Statistics and Information analysis revealed that consumer prices for miscellaneous goods and services increased by 4.8 percent year on year, followed by food and non-alcoholic beverages by 3.5 percent, healthcare by 3.2 percent, and culture and recreation by 0.8 percent.  

Restaurants and hotels also saw gains of 0.6 percent, clothing and footwear by 0.5 percent, household furniture and maintenance by 0.4 percent, and education by 0.1 percent.  

Conversely, transportation prices declined by 2.6 percent, while housing, utilities, fuel, communication, and tobacco categories remained stable.  

Breaking down the food and beverage category, vegetable prices recorded the largest increase at 8.9 percent. Fruits followed with an 8 percent rise. Dairy products, including milk, cheese, and eggs, increased by 5.4 percent. Oils and fats rose by 3.8 percent, while meat prices climbed by 2.8 percent. Sugar and confectionery saw a 2.4 percent increase. 

Processed foods increased by 1.8 percent, bread and cereals by 0.8 percent, and non-alcoholic beverages by 0.7 percent. Meanwhile, fish and seafood prices fell by 1.2 percent, partially offsetting the broader price hikes in food items.  

Broad money supply  

Data by the nation’s central bank pointed to a significant expansion in Oman’s broad money supply, which grew by 13.9 percent year on year, reaching 24.7 billion Omani rials ($64.1 billion) by the end of September.  

This growth was driven by an 18.2 percent increase in narrow money and a 12.3 percent rise in quasi-money, which includes savings deposits, term deposits in Omani rials, and certificates of deposit issued by banks, as well as margin accounts, and foreign currency holdings within the banking sector.  

Despite the overall monetary expansion, cash held by the public declined by 6.7 percent, while demand deposits surged by 25.1 percent, reflecting changing preferences in liquidity management.  

Commercial banks in Oman recorded rising interest rates during the period. The weighted average interest rate on Omani rial-denominated deposits increased from 2.453 percent in September 2023 to 2.679 percent in September this year.  

Similarly, the weighted average interest rate on loans denominated in Omani rials rose from 5.451 percent to 5.604 percent over the same period.  

Interbank lending rates for overnight transactions declined slightly, with the average falling to 4.896 percent in September compared to 5.388 percent in the same month last year.  

This shift aligns with the reduction in the weighted average repurchase rate, which decreased from 6.000 percent to 5.790 percent during the same timeframe. These movements are attributed to adjustments in monetary policy in line with the US Federal Reserve’s actions. 

Topics: Oman Inflation Banks Central Bank of Oman

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COP16: A turning point for global land restoration and drought resilience  

COP16: A turning point for global land restoration and drought resilience  
Updated 01 December 2024
Miguel Hadchity
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COP16: A turning point for global land restoration and drought resilience  

COP16: A turning point for global land restoration and drought resilience  
Updated 01 December 2024
Miguel Hadchity

RIYADH: The 16th session of the Conference of the Parties to the UN Convention to Combat Desertification is set to be a pivotal moment in the global fight against desertification and land degradation. 

Scheduled for Dec. 2-13, 2024, in Riyadh, COP16 carries the theme “Our Land. Our Future.”  

This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 

Why COP16 matters 

As one of the three Rio Conventions, alongside climate change and biodiversity, UNCCD plays a critical role in global environmental governance. COP16 aims to catalyze unprecedented ambition and investment to restore degraded lands and enhance drought resilience. 

The conference will focus on several key objectives:  

Scaling up land restoration: Accelerating efforts to restore 1.5 billion hectares of degraded land by 2030. 

Strengthening drought resilience: Enhancing global and national policy frameworks to better withstand and manage droughts. 

Promoting people-centered solutions: Ensuring the participation of local communities, women, and youth in land management and restoration efforts.  

“The COP16 plans to combat land degradation present exciting opportunities,” said Vijay Valecha, chief investment officer of Century Financial, in an interview with Arab News. 

“Land restoration will promote job growth, encourage sustainable development, and support local economies. According to the UNCCD, every dollar invested in restoring degraded lands yields between $7 and $30 in economic returns,” he added.  

Valecha underscored the importance of collaboration in achieving these ambitious goals, stating: “The target to reforest 1.5 billion hectares will require close collaboration among experts, universities, NGOs, government organizations, and the private sector. This collaboration will strengthen knowledge transfer to local communities and grassroots organizations, making development more sustainable in the long term.”  

HIGHLIGHTS

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation.

‘Missed calls from the land’  

As COP16 in Riyadh approaches, the presidency announced the launch of the global campaign, “Missed calls from the land.”  

This initiative, supported by a campaign film, highlighted Saudi Arabia’s commitment as the UNCCD COP16 Presidency to raise global awareness about the urgent issues of land degradation, drought, and desertification.  

Currently, 40 percent of the world’s land is degraded, affecting 3.2 billion people. The UNCCD’s target aims to restore 1.5 billion hectares of degraded land by 2030.  

Valecha elaborated on how land restoration will have far-reaching impacts: “Restoration also improves water retention in the soil, enhances agricultural output, stimulates the livestock economy, and increases water availability for human consumption.”  

He added: “These efforts will create more green jobs, making economies more resilient in the face of climate challenges.”  

Ministerial dialogues  

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

“COP16 in Riyadh is a critical moment for the international community to address land degradation, drought and desertification,” said Osama Faqeeha, deputy minister for environment and adviser to the UNCCD COP16 Presidency.  

In a press release, he added: “From food and water insecurity to climate change, conflict, instability, and forced migration, how we treat our land has a profound impact on lives and livelihoods around the world.” 

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

“At the same time, we are engaging policymakers from around the world in a range of high-profile discussions to deliver decisive multilateral action. This dual-pronged approach is vital to accelerating the land restoration and drought resilience initiatives our planet and its people so desperately need,” said Faqeeha.

FAO’s central role  

The Food and Agriculture Organization will play a key role at COP16, reflecting its commitment to sustainable land management and food security. Abdul Hakim Elwaer, FAO’s assistant director-general, emphasized in remarks to Asharq Al-Awsat the organization’s active participation, including leading discussions on transforming food systems and coordinating thematic days like Food Day and Governance Day.  

Valecha tied land restoration directly to food security, emphasizing: “Land restoration is crucial for ensuring we have enough food for the future. Sustainable methods like agroecology and regenerative agriculture can improve soil health, reduce carbon emissions, and boost productivity, creating robust food supply chains that adapt to climate change.”  

Strengthening drought resilience  

Building resilience to drought will be a key focus of COP16, emphasizing the role of policies and technologies, with Valecha advocating for proactive measures. 

“To improve drought resilience, a comprehensive framework is needed. This includes identifying vulnerable areas, implementing early warning systems, and enacting policies to prevent water overuse,” he said.  

“Measures such as promoting drought-resistant crops and establishing drought management funds will provide essential protection for affected communities,” Valecha added. 

The integration of local and indigenous knowledge into these efforts is equally vital.   

Valecha said: “Indigenous communities, as key stakeholders in land restoration, possess deep understanding of their ecosystems. Their involvement can significantly reduce deforestation rates, as seen in countries like Nepal and regions in the Americas.”  

A regional and global impact  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation. COP16 will provide an opportunity for regional countries to showcase their resilience strategies and contribute to shaping global policies.  

“The Gulf and MENA region, owing to its demographics, have been at the center of environmental challenges,” said Valecha. “However, initiatives such as drought and disease-resistant crop varieties by GCC nations demonstrate the region’s commitment to combating these challenges.”  

Moreover, COP16 will offer a platform to showcase innovative solutions, from advanced land management practices to cutting-edge technologies in water conservation.  

Youth and community engagement  

For the first time, COP16 will see Saudi Arabia host a Green Zone alongside the formal Blue Zone program. This inclusive public space will promote environmental awareness through family-friendly and cultural activities. 

The emphasis on inclusivity is central to COP16, with forums and training sessions for youth, women, and indigenous communities. The Green Zone will host discussions on sustainable land stewardship while featuring workshops, exhibitions, and interactive art installations.  

Valecha highlighted the potential of youth engagement at COP16: “Selected youth negotiators will participate in the Youth Negotiators Academy, equipping them with skills to advocate for actionable policies. These efforts promote intergenerational dialogue and foster solutions for sustainable livelihoods.”  

“Globally, women account for nearly 50 percent of agricultural labor in small-scale farming. Gender-inclusive policies across the value chain are critical to the success of restoration initiatives,” said Valecha. 

Innovative solutions and partnerships  

COP16 is expected to unveil groundbreaking initiatives, with Valecha anticipating significant developments. He added: “The conference could lead to the establishment of financing mechanisms and restoration funds. Cross-border partnerships can help maintain the Land Degradation Neutrality target and prevent further degradation of land resources.” 

Valecha emphasized the critical role of the private sector in achieving COP16’s goals, highlighting the potential contributions of international financial institutions and private companies. He pointed to favorable loans, green bonds, and funding for sustainable practices such as no-till farming and rotational grazing as key areas of support.  

He also stressed that public-private partnerships are vital for scaling up land restoration efforts. 

A call to action  

As COP16 commences, the world stands at a crossroads. This conference is not just a meeting but a call to action — a chance to turn ambition into tangible solutions for land, livelihoods, and the planet’s future. 

 

Topics: Riyadh COP16 COP16 climate change

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Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 
Updated 01 December 2024
Mohammed Al-Kinani 
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Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 
Updated 01 December 2024
Mohammed Al-Kinani 

JEDDAH: Saudi Arabia has launched the 10th round of its subscription-based savings product, Sah, for December, offering a competitive return of 4.83 percent. 

The initiative, aimed at fostering financial stability and supporting economic growth, is Shariah-compliant and government-backed.  

The sukuk opened for subscription on Dec. 1 and will remain available until Dec. 3. Allocations are scheduled for Dec. 10, with redemption from Dec. 15 to 18, and payment due on Dec. 22, according to the National Debt Management Center’s 2024 product issuance calendar.  

Organized by the NDMC and issued by the Ministry of Finance, the fee-free savings product offers low-risk returns and is accessible through the digital platforms of approved financial institutions.  

Sah is the first savings product in Saudi Arabia specifically designed for individuals, structured as bonds within the Kingdom’s local bonds program and denominated in Saudi riyals.  

It aligns with the Financial Sector Development Program under Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international benchmark of 10 percent by the end of the decade. 

The minimum subscription amount is SR1,000 ($266), equivalent to one bond, while the maximum is capped at SR200,000 per user during the program period. The product is exclusive to Saudi nationals aged 18 and above, with returns provided monthly based on the issuance calendar.  

The savings period spans one year, offering fixed returns, with accrued yields disbursed at the sukuk’s maturity. Returns for future issuances will be influenced by market conditions. 

Eligible individuals must hold accounts with one of five financial institutions: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Bank. 

The 9th round of Sah, launched on Nov. 3, offered a slightly higher return of 4.89 percent. That issuance closed with total allocations reaching SR3.415 billion ($990 million).  

The sukuk issuance for the 9th round was divided into five tranches, each with different maturities. The first tranche, worth SR2.524 billion, will mature in 2029. The second, valued at SR434 million, will mature in 2031. The third tranche, amounting to SR137 million, will mature in 2034. The fourth, totaling SR10 million, will mature in 2036. The fifth tranche, sized at SR310 million, will mature in 2039. 

The NDMC has emphasized that the Sah sukuk program is designed to strengthen collaboration with the private sector. Future initiatives will focus on developing customized savings products tailored to different individual categories in partnership with banks, fund managers, fintech companies, and other institutions. 

The launch marks a significant step by the Saudi government to promote savings and enhance financial inclusion, ensuring citizens have access to products and services that meet their financial needs.

Topics: Saudi Banks Sukuk bonds

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Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report
Updated 01 December 2024
 Nadin Hassan 
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Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report
Updated 01 December 2024
 Nadin Hassan 

RIYADH: Saudi Arabia’s banking sector recorded a 3.7 percent sequential increase in loans and advances in the third quarter of 2024, driven by a 4.4 percent surge in corporate and wholesale banking, according to Alvarez & Marsal. 

Deposit growth lagged behind, rising 1.4 percent during the same period, as credit demand continued to outpace deposit mobilization.   

“The continued positive performance in the third quarter of 2024 reflects a balance of growth and improved cost efficiencies among Saudi banks. Profitability has increased primarily due to an increase in non-interest income amid a moderate rise in impairment charges,” Asad Ahmed, managing director of A&M Financial Services, said. 

He added: “As the Saudi Central Bank maintains interest rates in line with the US Fed, potential further rate cuts in the coming quarters are likely to affect interest margins. Focus on non-interest income and improved cost efficiencies will remain central going forward.” 

Time deposits grew by 4.2 percent, underscoring the high-interest rate environment. The loan-to-deposit ratio exceeded 100 percent, indicating that credit demand outpaced deposit mobilization. 

Operating income increased by 6.0 percent during the quarter, driven by a 15.2 percent rise in non-interest revenue. This contributed to an overall improvement in the cost-to-income ratio, which fell by 31 basis points to 31.0 percent. 

Net income rose by 5.3 percent, reaching SR20.5 billion, even as impairment charges surged by 30.4 percent. 

The Saudi Central Bank reduced repo rates by 50 basis points in line with the US Federal Reserve’s actions. Despite this, net interest margins remained steady at 2.95 percent, supported by an 18-basis-point increase in the yield on credit to 8.6 percent and a slight rise in the cost of funds to 3.5 percent.   

Saudi Arabia’s Vision 2030 continues to drive non-oil economic growth, spurring consumer spending, tourism, and construction activities.  

Financial institutions are also prioritizing digital transformation. For example, Al Rajhi Bank’s acquisition of a controlling stake in “Drahim,” a management platform, highlights the growing integration of traditional banking and fintech. 

According to the report, Saudi banks are well-positioned for sustainable growth as they focus on enhancing non-interest income and operational efficiency in a dynamic economic environment. 

While geopolitical challenges and oil market fluctuations present risks, the Kingdom’s banking sector remains resilient, playing a key role in advancing the broader economic objectives outlined in Vision 2030.

Topics: Saudi Banks SAMA

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