Middle East CEOs optimistic about economic growth, AI integration: study
Updated 14 March 2024
ARAB NEWS
RIYADH: Global economic volatility alongside emerging technologies has not deterred business confidence among CEOs in the Middle East, a recent report revealed.
The CEO Global Insights Study for 2024 by Arthur D. Little, survey almost with 300 CEOs from across the world, and discovered positivity from leaders in the region.
The report revealed that 61 percent of CEOs in the Middle East are optimistic about economic growth in the next three to five years, a notable jump from just 13 percent last year.
Despite the ups and downs in the global economy, 37 percent of the CEOs surveyed still see a steady future, reflecting their trust in the region’s economic strength.
With just 2 percent expecting a decline, there is a shared belief that the Middle East is on the rise after overcoming recent obstacles.
In the field of emerging technologies, a commitment to integrating artificial intelligence across business operations is seen as “crucial to growth and echoes globally”, with 54 percent of Middle East CEOs expressing a strategic vision toward a holistic, companywide AI deployment.
On that note, 96 percent of global CEOs stated that they have already deployed AI in their institutions in some capacity.
Regionally, 31 percent confirmed the implementation of AI strategies across several departments, with 13 percent already realizing “a compelling, enterprise-wide AI strategy.”
According to the report, the leaders understand that in order to harness the abilities of AI, they must also focus on human capability and reskilling.
Some 59 percent of the CEOs who undertook the survey said that they “have either a strong or very strong need to reskill their workforces to meet changing requirements.”
This trend is particularly pressing in sectors such as manufacturing, with a 63 percent increase in the need to reskill.
“In the current times of business and geopolitical shifts, it is inspiring to witness the optimism among the Middle East’s CEOs for what lies ahead,” said Thomas Kuruvilla, managing partner at Arthur D. Little Middle East, adding: “The ADL 2024 CEO Insights Study reveals that despite acknowledging the continuing unpredictability, these leaders are confident that with resilient business models, strategic clarity, the embrace of AI, and a focus on upskilling their teams, their companies and markets are poised for enduring growth and will actively contribute to the region's prosperous future.”
He continued: “AI is more than a buzzword in the Middle East; it’s a strategic imperative that’s receiving boardroom attention. Our CEOs are not just adopting AI but are strategically deploying it to unlock a new frontier of possibilities.”
Giga-projects fueling real estate boom in Saudi Arabia
Updated 59 min 43 sec ago
Miguel Hadchity
RIYADH: Saudi Arabia’s real estate sector underwent a major transformation in 2024, driven by the goals of Vision 2030. The market saw significant changes, fueled by unprecedented investments and key policy reforms. As a result, the Kingdom has positioned itself as a global leader in innovation, sustainability, and economic diversification within the real estate industry.
Vision 2030
Since its launch in 2016, Vision 2030 has served as Saudi Arabia’s roadmap for economic diversification, with real estate playing a central role. By 2024, the Kingdom had invested SR4.9 trillion ($1.3 trillion) in infrastructure, significantly boosting residential, commercial, and hospitality capacities. Notable projects aim to introduce over a million residential units, as well as expand retail and office spaces by 7 million sq. meters each.
“Saudi Arabia’s policy reforms and investment under Vision 2030 have transformed the Kingdom’s real estate landscape, making it one of the most dynamic markets in the region,” said Tarek Lotfy, president of Mercer in India, Middle East, and Africa, in an interview with Arab News.
He emphasized that these reforms have accelerated the sector by aligning with broader initiatives to increase homeownership, improve livability, and attract foreign investments. This has been achieved through eased ownership regulations and the creation of Special Economic Zones.
FASTFACTS
By 2024, the Kingdom had invested SR4.9 trillion ($1.3 trillion) in infrastructure, significantly boosting residential, commercial, and hospitality capacities.
A 38 percent increase in real estate transactions during the first half of 2024, valued at SR127.3 billion, highlights the sector’s dynamic growth.
Cities like Riyadh and Jeddah have seen rising property prices, with Riyadh expected to reach a population of 10 million by 2030.
According to Sally Menassa, partner at Arthur D. Little Middle East, these reforms have included “easing foreign ownership restrictions, enhancing transparency in real estate transactions, introducing incentives for green building practices, and establishing a national framework for smart city development.”
The establishment of a real estate transaction registry has been a particularly significant step in boosting market confidence, as it reduces the risks of fraud and increases investor trust.
Menassa further highlighted the role of mega-projects in fostering investor confidence: “The involvement of the PIF in major development projects such as the Diriyah Gate Development reassures investors of the Kingdom’s commitment to high-quality, sustainable development and the stability of such developments.”
Lotfy added that alongside these advancements, the rapid pace of development has also created challenges, including increasing competition for skilled labor in construction and smart city infrastructure.
Recruitment and retention will be key themes in 2025, as companies will need to focus on developing long-term talent strategies, investing in training, and fostering a culture that attracts and retains top-tier talent, according to Lotfy.
Catalysts for transformation
Saudi Arabia’s giga-projects, led by the Public Investment Fund, underscore the Kingdom’s commitment to large-scale innovation and ambitious transformation. High-profile projects like NEOM, Qiddiya, and the Red Sea Global are set to redefine urban living, culture, and tourism.
NEOM alone spans 28,000 sq. km and is envisioned as a smart city powered by renewable energy and cutting-edge technology. Menassa emphasized the uniqueness of NEOM, pointing to initiatives like Oxagon, a floating industrial complex designed for sustainability and advanced technologies. “This is expected to attract high-tech industries and global talent, driving demand for residential and commercial properties,” she said.
Meanwhile, Qiddiya is being developed as a world-class entertainment hub, featuring theme parks, cultural centers, and sports complexes. Menassa added that Qiddiya’s growth as a major cultural and entertainment destination would further boost tourism and the hospitality sector, creating demand for mixed-use assets that combine retail, leisure, and residential components.
The Red Sea Project is another transformative initiative focused on sustainable tourism. According to Menassa: “Focusing on eco-friendly concepts and incorporating sustainable practices in its development, starting from construction, it (The Red Sea Project) will set new standards for regenerative and sustainable tourism and real estate development.”
Residential market
Saudi Arabia’s residential sector saw substantial growth in 2024, driven by government-backed initiatives and strong demand. Programs like Sakani and the National Housing Program have been essential in advancing the Vision 2030 goal of achieving 70 percent homeownership.
Menassa underscored the significance of these efforts: “The addition of over a million homes as part of Saudi Arabia’s residential expansion efforts, aligning with the goal of achieving a 70 percent homeownership rate under Vision 2030, is expected to significantly impact homeownership rates and affordability, creating a big socio-economic shift in the nation.”
A 38 percent increase in real estate transactions during the first half of 2024, valued at SR127.3 billion, highlights the sector’s dynamic growth. Cities like Riyadh and Jeddah have seen rising property prices, with Riyadh expected to reach a population of 10 million by 2030.
Hospitality and tourism
Tourism, a cornerstone of Vision 2030, has already surpassed expectations. The Kingdom achieved its target of 100 million visitors in 2023 and now aims to attract 150 million tourists annually by 2030.
“The 2034 FIFA World Cup will play an instrumental role in shaping the future of the short-term rental market in Saudi Arabia over the next 10 years,” said Anna Skigin, CEO of Frank Porter, in an interview with Arab News. “We will see a significant increase in the number of properties being developed as savvy investors look to capitalize on the announcement. We will also see more people buying properties and converting these into short-term rentals,” she added.
Short-term rentals are reshaping the tourism landscape, creating new opportunities for various types of travelers. Skigin noted: “There is the opportunity for larger groups to travel — potentially multi-generational family travel and other large groups of family and friends.”
She further explained, “Short-term rentals can cater to a variety of different budgets while offering more space than hotel rooms. These rentals also provide more privacy for travelers.”
Menassa also highlighted the Kingdom’s focus on luxury resorts, boutique hotels, and eco-friendly accommodations as part of its broader tourism strategy. Developments like Jeddah Al-Balad, Diriyah, and Qiddiya are generating demand for integrated, mixed-use assets, boosting both tourism infrastructure and the overall quality of life, she explained.
Proptech boom
Saudi Arabia’s digital transformation has positioned proptech as a key component in the evolution of its real estate sector. Innovations such as digital mortgages, AI-driven property recommendations, and virtual tours are revolutionizing the home-buying experience.
“Digital mortgages will allow streamlined processes, expediting the buying process by automating many of the steps involved, enhancing accessibility, and increasing transparency. Buyers can now compare rates, get pre-approved for loans from their homes, and explore homeownership opportunities with greater ease,” said Menassa.
She also highlighted the integration of smart city infrastructure like NEOM’s, which incorporates advanced technologies to enhance urban living.
“This also extends to urban planning and management, including advanced surveillance systems, smart street lighting, emergency response, traffic forecasting, and energy consumption management,” Menassa added.
Outlook
Despite its rapid growth, the Saudi real estate sector faces challenges such as economic volatility and rising project costs. Lotfy warned that as the Kingdom moves towards smart cities and sustainable development, the demand for advanced technical skills will increase.
However, the opportunities outweigh these challenges. Skigin concluded: “The Kingdom has been significantly pushing tourism for both international and domestic tourists,” and these efforts will continue to shape the future of Saudi Arabia’s real estate sector in the coming years.
Closing Bell: Saudi indices start week in green closing at 11,892
Updated 29 December 2024
NOUR EL-SHAERI
RIYADH: Saudi Arabia’s Tadawul All Share Index started the week with a 0.28 percent increase, or 33.28 points, to reach 11,892.75 points on Sunday.
The total trading turnover of the benchmark index was SR3.5 billion ($942.7 million), as 140 of the listed stocks advanced, while 86 retreated.
The MSCI Tadawul Index increased by 4.26 points, or 0.29 percent, to close at 1,494.56.
The Kingdom’s parallel market Nomu also increased, gaining 166.10 points, or 0.54 percent, to close at 31,052.81 points. This comes as 42 of the listed stocks advanced while as many as 34 retreated.
The index’s top performer, Buruj Cooperative Insurance Co., saw a 9.96 percent increase in its share price to close at SR20.10.
Other top performers included Arriyadh Development Co., which saw a 9.34 percent increase to SR34.55, while Wataniya Insurance Co.’s share price rose 8 percent to SR23.22.
The Mediterranean and Gulf Insurance and Reinsurance Co. also recorded a positive trajectory, with share prices rising 7.66 percent to reach SR26.70. Retal Urban Development Co. also witnessed positive gains, with 6.16 percent reaching SR16.20.
Al-Baha Investment and Development Co. saw the steepest decline on TASI, with its share price slipping 4 percent to SR0.48.
Saudi Cable Co. followed with a 2.94 percent decline to SR99.20. Almarai Co. also saw a drop of 2.46 percent to settle at SR55.50.
Saudi Industrial Development Co.’s share also fell by 2.41 percent to settle at SR28.40, and Anaam International Holding Group’s decreased by 2.31 percent to sit at SR1.27.
In Nomu, Miral Dental Clinics Co. was the best performer, with its share price rising by 7.47 percent to reach SR112.20.
Among the gainers, United Mining Industries Co. saw its share price rise by 6.08 percent, reaching SR41.90, while Aqaseem Factory for Chemicals and Plastics Co. recorded a 5.65 percent increase, standing at SR8.41.
Meyar Co. also fared well, with a 5.58 percent increase, and Arabian Plastic Industrial Co. rose by 4.65 percent.
Alhasoob Co. shed the most in Nomu, with its share price dropping by 8.68 percent to reach SR61.
Arabian Food and Dairy Factories Co. experienced a 7.71 percent decline in share prices, closing at SR85, while Bena Steel Industries Co. dropped 7.61 percent to settle at SR38.25.
Lana Medical Co. and Arabian United Float Glass Co. were also among the top decliners, with Lana Medical Co. falling 4.07 and Arabian United Float Glass Co. declining 3.80 percent.
Saudi Arabia charts global leadership path with landmark deals in 2024
Updated 29 December 2024
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia’s Vision 2030 agenda gained significant momentum in 2024, with the Kingdom securing a series of high-profile strategic partnerships that span multiple industries.
These deals, coupled with the country’s ongoing reforms, are positioning Saudi Arabia as a global economic and financial powerhouse. Experts emphasize that these agreements have long-term potential to diversify the Kingdom’s economy and reduce its dependency on oil revenues.
In the past year, Saudi Arabia signed key agreements with international governments and corporations in sectors including education, tourism, IT, finance, manufacturing, and renewable energy, according to Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh.
Tourism sector takes off
The Saudi Tourism Authority reached a major milestone in May by unveiling the Kingdom’s unique summer destinations at the Arabian Travel Market. This initiative resulted in over 40 new agreements, including partnerships with Saudia, Riyadh Air, flyadeal, Noon, and China’s i2i Group.
“Tourism is expected to play a major role in the Kingdom’s economic transformation,” Ghulam said, underscoring the importance of these agreements in promoting the sector and creating new employment opportunities, particularly for youth and women. These efforts are in line with Vision 2030’s broader objectives. Saudi Arabia aims to develop year-round attractions and position itself as a top global destination. By blending traditional culture with modern experiences, the Kingdom is appealing to both domestic and international tourists, further strengthening its tourism strategy.
Strategic alliances
Abdullah Al-Maghlouth, a member of the Saudi Economic Association, pointed out that the Kingdom’s strategic alliances focus on diversifying the economy, attracting foreign investments, and boosting trade with international partners. These partnerships span regions, including the US, China, Europe, and Africa, and cover sectors such as technology, infrastructure, tourism, education, and renewable energy.
“These partnerships include collaborations with the US, China, European countries, and African nations, focusing on areas like energy, technology, infrastructure, tourism, education, and renewable energy,” he explained.
The agreements target key areas such as reducing reliance on oil, improving infrastructure, and fostering innovation while supporting flagship projects like NEOM, Qiddiya, and The Red Sea Project.
“These alliances will improve product and service quality, promote innovation, and help Saudi companies adopt modern technologies,” Al-Maghlouth added.
Education sector
2024 also saw significant strides in education. In November, top American universities visited Saudi Arabia, leading to an agreement aimed at strengthening academic and scientific cooperation. This partnership will increase exchanges between students and faculty, foster joint research projects, and introduce advanced academic programs.
Additionally, Saudi Arabia’s Technical and Vocational Training Corp. launched a cooperation program with the UK’s Department for Business and Trade, reinforcing the Kingdom’s growing reputation as a hub for international academic collaborations.
Another key development was a service agreement between the University of Strathclyde and Princess Nourah bint Abdulrahman University, signaling an open door for more British universities to establish partnerships in Saudi Arabia.
HIGHLIGHTS
These partnerships span regions, including the US, China, Europe, and Africa, and cover sectors such as technology, infrastructure, tourism, education, and renewable energy.
The agreements target key areas such as reducing reliance on oil, improving infrastructure, and fostering innovation while supporting flagship projects like NEOM, Qiddiya, and The Red Sea Project.
In November, top American universities visited Saudi Arabia, leading to an agreement aimed at strengthening academic and scientific cooperation.
Saudi Arabia signed a major agreement with NASA in 2024 to strengthen ties in space exploration, research, and education.
LEAP 24, a major tech event organized by the Saudi Data and Artificial Intelligence Authority, resulted in agreements worth $24 billion to boost AI research and digital technology localization.
Space and digital transformation
In a groundbreaking move, Saudi Arabia signed a major agreement with NASA in 2024 to strengthen ties in space exploration, research, and education. “This agreement has a huge significance and shall pave the way for further collaboration and related economic activities,” said Ghulam.
On the digital front, LEAP 24, a major tech event organized by the Saudi Data and Artificial Intelligence Authority, resulted in agreements worth $24 billion to boost AI research and digital technology localization.
Highlights include Amazon’s $5.3 billion investment in training initiatives, including the AWS Saudi Arabia Women’s Skills Initiative, which aims to train 4,000 women. Additionally, Aramco Digital announced partnerships with US tech companies to build the world’s largest AI supercomputer center in Saudi Arabia.
“All these agreements are expected to generate employment opportunities and help diversify the economy greatly,” Ghulam said.
Abdullah Al-Maghlouth, a member of the Saudi Economic Association, pointed out that the Kingdom’s strategic alliances focus on diversifying the economy.
Construction, renewable energy sectors
In the construction sector, a notable partnership was formed between Saudi Arabia’s National Housing Co. and China’s CITIC Construction. The agreement focuses on developing industrial cities and logistics zones to support residential projects and strengthen the real estate sector. Ghulam emphasized that these zones would boost construction, support local industries, expand the domestic materials market, and improve housing quality.
Renewable energy also made waves in 2024. In January, ACWA Power, a Saudi company, led a $1.5 billion wind energy project in Egypt, one of the largest onshore wind energy projects globally. “This initiative will provide electricity to 1 million homes in Egypt and reduce carbon emissions by 2.4 million tonnes annually,” Ghulam pointed out.
This project not only supports Egypt’s energy needs but also solidifies ACWA Power’s position as a key player in the global renewable energy sector, alongside other leading Saudi brands like Aramco and the Public Investment Fund.
PIF’s expanding role
The Public Investment Fund continues to be a driving force behind the Kingdom’s economic transformation. Since 2017, PIF has created nearly 644,000 jobs and launched 94 new businesses. In 2024, PIF acquired a 15 percent stake in Heathrow Airport for $4.12 billion, signaling its intent to expand its influence in global infrastructure projects.
PIF also partnered with Google Cloud to establish an AI hub in Saudi Arabia, a project that is expected to contribute $71 billion to the country’s GDP over the next eight years.
“This cooperation seeks to strengthen the Saudi workforce and assist the country’s goal of a 50 percent increase in the information and communication technology industry in coming years,” Ghulam noted.
In the renewable energy sector, PIF has been instrumental in localizing the production of wind turbines, solar cells, and other renewable technologies. In partnership with Jinko Solar and Vision Industries, PIF is working to produce solar power ingots and wafers, further advancing Saudi Arabia’s green energy ambitions.
Additionally, in April, PIF joined forces with BlackRock to launch a multi-asset investment platform in Riyadh, aimed at expanding Saudi Arabia’s capital markets and attracting global investors.
A transformative year
The strategic partnerships and investments forged by Saudi Arabia in 2024 reflect the Kingdom’s commitment to economic innovation, diversification, and global collaboration. By focusing on developing human capital, cutting-edge industries, and sustainable growth, Saudi Arabia is positioning itself as a leader on the world stage across multiple sectors.
Saudi Arabia’s flynas launches Dammam-Red Sea flights to boost tourism connectivity
New service operates twice weekly, on Thursdays and Saturdays
RSI is key in helping the Kingdom attract a significant amount of tourists by 2030
Updated 29 December 2024
NADIN HASSAN
RIYADH: Saudi low-cost airline flynas has launched a new direct route connecting Dammam’s King Fahd International Airport to the Red Sea, enhancing access to the Kingdom’s premier tourism destination.
The inaugural flight, which landed on Dec. 26, marked the first direct connection between the Eastern Province and the Red Sea International Airport.
The new routes support Saudi Arabia’s Vision 2030, which aims to make the Kingdom a global tourism hub by enhancing connectivity and infrastructure, while RSI is key in helping the nation attract a significant amount of tourists by the end of the decade.
The new service operates twice weekly, on Thursdays and Saturdays, and complements existing flights from Riyadh and Jeddah, strengthening RSI’s role as a domestic and international tourism hub.
We're partnering with @flynas to introduce two weekly flights between Dammam and @RSI_airport. With our airport's strategic location, within three hours of 250 million people, we're one step closer to transforming it into a global travel hub.
Since September 2023, The Red Sea destination has hosted visitors at its five luxury resorts, supported by national carrier Saudia’s regular domestic services.
In 2024, RSI achieved another milestone by welcoming its first international flight from Dubai International Airport, operated by flydubai.
These developments highlight RSI’s growing role as a key gateway to Saudi Arabia’s tourism offerings.
Once fully operational, RSI will run entirely on renewable energy generated by 760,500 photovoltaic panels and one of the world’s largest off-grid battery energy storage systems.
Current airside operations, including lighting, navigation, and meteorological equipment, are already exclusively powered by renewable energy.
Upon its completion in 2030, the expansive development will feature 50 resorts offering up to 8,000 hotel rooms and more than 1,000 residential units across 22 islands and six inland sites.
The development will also feature luxury marinas, golf courses, diverse dining options, and entertainment facilities, positioning it as a global leader in sustainable and luxury tourism.
In November, flynas added two new African destinations to its network beginning on Jan. 8.
The airline will operate three weekly flights from Riyadh to Uganda and three from Jeddah to Djibouti, according to the company’s statement.
Starting today, we're introducing two weekly flights to and from Dammam, making travel easier for domestic visitors. As we prepare for the main terminal’s opening next year, RSI is on its way to becoming a world-class hub. pic.twitter.com/Z7I5xSh4qJ
The expansion is part of the airline’s “We Connect the World to the Kingdom” initiative and supports Saudi Arabia’s National Civil Aviation Strategy, which aims to expand connectivity to 250 international destinations and reach 330 million passengers.
The routes to Uganda and Djibouti also align with Saudi Arabia’s goal of welcoming 150 million tourists annually by 2030 and advancing the Pilgrims Experience Program, which seeks to streamline travel access to the holy cities of Makkah and Madinah.
Red Sea International is strategically located to serve 250 million people within a three-hour flight radius, covering the Middle East, parts of Europe, and Africa.
NEOM’s Oxagon leads the way in sustainable industrial revolution
Oxagon has become a global model for future industrial development
It has continued to leverage cutting-edge technologies to revolutionize logistics and manufacturing operations
Updated 29 December 2024
Reem Walid
RIYADH: Oxagon, the industrial cornerstone of NEOM, has solidified its position as a critical hub for logistics and manufacturing, perfectly aligned with Saudi Arabia’s Vision 2030.
Through a blend of innovation, sustainability, and technological progress, Oxagon has become a global model for future industrial development. Spanning approximately 50 sq. km, it ranks among the largest floating industrial complexes worldwide and is on track to achieve 100 percent renewable energy use by 2030.
The accomplishments of 2024 underscore Oxagon’s commitment to economic diversification and environmental responsibility, offering valuable lessons for businesses. By prioritizing sustainability, embracing cutting-edge technologies, and showcasing adaptability, Oxagon sets new benchmarks for the logistics and manufacturing sectors.
Driving sustainability
Oxagon stands as a beacon of sustainable practices within logistics and manufacturing. Paolo Carlomagno, partner at Arthur D. Little Middle East, said that Oxagon’s initiatives align with the core objectives of Saudi Vision 2030, aiming to create a diversified economy while reducing environmental impact.
“For example, Oxagon’s logistics operations integrate renewable energy sources, such as solar and wind, which have collectively reduced carbon emissions by an estimated 25 percent compared to traditional models,” Carlomagno explained.
Paolo Carlomagno, partner at Arthur D. Little Middle East, notes that Oxagon’s initiatives align with the core objectives of Saudi Vision 2030, aiming to create a diversified economy while reducing environmental impact.
“Additionally, the manufacturing ecosystem embraces circular economy principles, focusing on resource efficiency and waste minimization. By 2026, Oxagon’s waste-to-resource initiatives are projected to recycle 90 percent of industrial waste generated within the facility,” he added.
Carlomagno further emphasized that advanced systems such as green building technologies and smart water management are integral to Oxagon’s strategy to minimize its environmental footprint.
“For instance, Oxagon employs advanced desalination techniques that use 40 percent less energy than conventional methods, providing a sustainable water supply for both industrial operations and local communities,” he noted. “These efforts create a resilient, eco-friendly industrial ecosystem capable of adapting to future challenges.”
Collaboration is central to Oxagon’s strategy, with partnerships with global corporations like Siemens and Schneider Electric driving the accelerated adoption of sustainable practices.
“These collaborations have led to the implementation of innovative solutions, such as energy-efficient manufacturing systems and low-carbon supply chain logistics, setting a standard for the region and beyond,” he added.
FASTFACTS
Oxagon’s logistics operations integrate renewable energy sources, such as solar and wind, which have collectively reduced carbon emissions by an estimated 25 percent compared to traditional models.
Oxagon employs advanced desalination techniques that use 40 percent less energy than conventional methods, providing a sustainable water supply for both industrial operations and local communities.
Real-time demand forecasting has allowed Oxagon’s partners to reduce inventory holding costs by 20 percent, reflecting its agility in a dynamic global market.
Technological innovations
In 2024, Oxagon has continued to leverage cutting-edge technologies to revolutionize logistics and manufacturing operations. Carlomagno noted that technologies such as artificial intelligence, robotics, and the Internet of Things have played a crucial role in streamlining processes, enhancing predictive maintenance, and optimizing inventory management, resulting in efficiency gains of approximately 30 percent compared to 2023.
“One notable advancement has been the integration of autonomous electric vehicles within its logistics network. These vehicles, combined with AI-driven route optimization algorithms, have reduced delivery times by 20 percent and operational costs by 15 percent,” he said.
“Additionally, smart manufacturing hubs equipped with IoT-enabled machinery have increased production accuracy by 25 percent, while reducing downtime through predictive maintenance protocols.”
Looking forward, Carlomagno highlighted that Oxagon’s commitment to emerging technologies promises further industry disruption.
“The adoption of blockchain for transparent supply chain management is expected to reduce fraud and improve traceability, while quantum computing — currently under exploration — offers the potential to solve complex logistical challenges at unprecedented speeds. Such innovations are expected to drive a projected 10 percent annual growth rate in Oxagon’s industrial output over the next five years,” he said.
Federico Pienovi, chief business officer and CEO for APAC & MENA at Globant, outlined Oxagon’s use of AI-driven analytics, blockchain-enabled supply chain management, and autonomous systems to create a highly connected and efficient operational ecosystem. These advancements have improved transparency, reduced inefficiencies, and streamlined processes, enabling smarter decision-making.
“For example, AI and machine learning have played pivotal roles in logistics, enabling predictive models that optimize shipping schedules. By analyzing port availability in real-time, these systems ensure vessels depart and arrive with precision, avoiding costly delays and idle time. Similarly, blockchain technology ensures supply chain transparency, building trust and resilience across global operations,” said the CEO.
In manufacturing, robotics, supported by AI, has revolutionized production lines, offering unmatched precision, scalability, and flexibility.
“IoT sensors have elevated predictive maintenance to a new level, reducing downtime and enhancing overall equipment efficiency. Combined, these innovations are driving higher product quality, creative business models, and smarter scalability,” he said.
Federico Pienovi, chief business officer and CEO for APAC & MENA at Globant, outlined Oxagon’s use of AI-driven analytics, blockchain-enabled supply chain management, and autonomous systems to create a highly connected and efficient operational ecosystem.
Looking to the future, Pienovi emphasized that Oxagon’s connected experiences will further enhance operations, not just in factories and logistics but also for employees. By integrating data from IoT, AI, and machine learning, Oxagon offers seamless workflows while maintaining a people-centric approach, improving employee satisfaction, operational agility, and productivity.
Evolving market dynamics
As global markets evolve, Oxagon provides a model for how businesses can adapt and thrive. Carlomagno noted that Oxagon’s strategy revolves around three core pillars: collaboration, sustainability, and digital transformation. By forming strategic partnerships with technology providers, academic institutions, and multinational corporations, Oxagon has positioned itself as an innovation hub.
“For example, a partnership with MIT enabled the establishment of a data-driven logistics optimization platform that has increased supply chain efficiency by 15 percent,” he said.
Oxagon’s consumer-centric approach also sets it apart. By leveraging data analytics and consumer feedback loops, the company ensures its products and services meet evolving market demands.
“For instance, real-time demand forecasting has allowed Oxagon’s partners to reduce inventory holding costs by 20 percent, reflecting its agility in a dynamic global market,” said Carlomagno.
Pienovi emphasized that embracing digital transformation is a critical strategy for future success.
“Oxagon has placed advanced technologies like AI, IoT, edge computing, and automation at the core of its operations. By integrating predictive AI models, Oxagon has optimized its supply chain management, enabling it to forecast demand and identify the most efficient logistics routes,” he said.
The CEO added: “At the same time, IoT sensors and robust platforms have elevated operational efficiency, improved product quality, and enhanced risk mitigation efforts. These technologies have not only transformed manufacturing and logistics but have also paved the way for connected experiences, where personalized insights enhance decision-making across operations.”
Sustainability remains a key pillar of Oxagon’s strategy. “By integrating circular economy principles, Oxagon has redefined what it means to operate in an environmentally conscious manner, aligning itself with the growing consumer demand for responsible and eco-friendly brands. Its efforts in sustainability are not merely a corporate responsibility but also a strategic driver for differentiation in the global market,” said Pienovi.
In an increasingly digital business environment, Pienovi highlighted the growing importance of data privacy and cybersecurity.
“Oxagon’s commitment to compliance with regulations, such as Saudi Arabia’s NCA and international standards, underscores its focus on maintaining trust and ensuring secure operations,” he concluded.
As global business becomes more interconnected, Oxagon’s initiatives in 2024 provide a powerful model for how businesses can successfully adapt by integrating innovation, sustainability, and collaboration.
