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Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

Japanese Minister for Digital Transformation Taro Kono during an interview with Arab News. AN photo by Hashim Nadeem

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Updated 12 May 2024

Nada Hameed

May 05, 2024 17:12

Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

Updated 12 May 2024

Nada Hameed

May 05, 2024 17:12

JEDDAH: Lauding Saudi Arabia’s efforts in developing giga-projects and the ongoing digital transformation in the country, a top Japanese official expressed his country’s willingness to strengthen collaboration with the Kingdom in the field of information technology.

Speaking to Arab News, Japanese Minister for Digital Transformation Taro Kono described his recent visit to one of the crown jewels of Vision 2030, NEOM, as truly remarkable.

The minister said that “he had the opportunity to fly over the project and witnessing it firsthand was truly remarkable.”

Since the launch of Vision 2030, Saudi Arabia has been in overdrive to diversify its economy away from oil and emerge as a hub of tourism, entertainment, technology, and renewable energy. On its road to transformation, the Kingdom is forging strategic partnerships with its global allies to achieve its target and work on mutually beneficial arrangements.

“I heard a lot about NEOM and The Line, I saw that the progress made was very impressive. And we heard the vision from the CEO. And it’s very convincing. So I was very glad that I came to NEOM this time. It was a very short (trip), but I think it was worth it,” the minister told Arab News.

NEOM, often referred to as the “city of the future,” is a $500-billion megacity project situated in the northwest region of Saudi Arabia. Encompassing 26,500 sq. km, the project aims to become a global leader in technology, innovation, and tourism through futuristic urban design and sustainable energy solutions.

Talking about Saudi Arabia’s demography, the minister said it is “a very young country” where the majority of the people are under the ages of 30-35. “And I see the Kingdom becoming more vibrant. And projects like NEOM” show that the country is swiftly moving forward.

Acknowledging the Kingdom’s success in adapting to the latest technologies, particularly related to cybersecurity, Kono praised the country’s leadership and its vision. He expressed his eagerness to forge a partnership with his Saudi counterpart to “learn from the Kingdom’s success.”

“I think the Kingdom is building up its resilience against any malicious attacks in cyberspace. So, I believe it is very ready to take a bold step forward. And I had a meeting with Saudi Minister of Communications and Information Technology Abdullah Al-Swaha and I think there’s a lot to learn from the Kingdom,” the Japanese minister said, adding that he had instructed his team to get in touch with their Saudi counterparts to learn from their approach.

Kono, however, stressed the need to develop non-English datasets to train artificial intelligence and proposed collaboration between Japan and Saudi Arabia in this regard.

While Japan has historically led in hardware technology, the minister admitted a lag in digital technology investment. Recognizing this gap, he signed a memorandum of cooperation with Al-Swaha to learn from Saudi Arabia’s IT advancements.

He said that although Japan excelled in analog technology during the 20th century, admittedly, they have fallen behind in investing in digital technology.

Their discussions reportedly included topics such as E-ID utilization, where Kono hopes to collaborate on developing mutual use cases to propel Japanese progress. He added: “I think the Kingdom and Japan could work together to advance in the field of IT software AI, so very much looking forward to that.”

With shared visions such as Vision 2030 and upcoming events like Expo 2025 in Osaka and Expo 2030 in Riyadh, the two countries have maintained a strong relationship for nearly seven decades.

Kono believes there is immense potential for collaboration between the two countries, particularly in joint projects for Expo 2025 in Osaka and Expo 2030 in Riyadh. “I am looking forward to continue working closely with the Kingdom,” he added.

Expo 2025 is scheduled to be held in Osaka, Japan. It will be held for 184 days This will be the third time for the Japanese city to host the event. Earlier Osaka hosted the global event in 1970 and then in 1990.

The theme for Expo 2025 is “Designing Future Society for Our Lives,” focusing on creating a better future through innovation and sustainability. The expo will provide a platform for countries to share their ideas and solutions to global challenges.

Expo 2030 is scheduled to be held in Riyadh. As the first World Expo to be hosted in the Middle East, it presents an opportunity for the region to showcase its cultural heritage, technological advancements, and vision for the future. The theme for Expo 2030 in Riyadh is “The Era of Change: Together for a Foresighted Tomorrow.” It is expected to align with Saudi Arabia’s Vision 2030 goals of diversifying the economy and promoting innovation.

Kono said: “When we had our expo in Osaka for the first time, I was probably seven or eight years old. But it gave us sort of a good, big push for the economy, or not just the economy, for society as well. Expo brings in a lot of our dreams, and dreams we had back then come true. So, this Expo 2025 will hopefully bring in another dream. And I hope it will make a bridge to 2030 and we (Saudi Arabia and Japan) can work together to make our dreams come true.”

Topics: Saudi Arabia Japan Interview IT main giga project

Global economic growth to average at 3.1% in next 5 years: IMF official

Updated 15 sec ago

Nirmal Narayanan

March 23, 2025 13:47

Global economic growth to average at 3.1% in next 5 years: IMF official

Updated 15 sec ago

Nirmal Narayanan

March 23, 2025 13:47

RIYADH: Global economic growth is expected to average around 3.1 percent in the next five years, below the pre-pandemic level of 3.7 percent, according to an International Monetary Fund official.

Speaking at the China Development Forum in Beijing on March 23, Nigel Clarke, deputy managing director of the IMF, said that total factor productivity internationally, which measures the ability to create more outputs with the same inputs, has been growing at a slower pace since the 2008-09 global financial crisis.

The worldwide growth projections of the IMF indicate that countries in the Middle East are expected to show future financial resilience.

In January, the UN financial agency said Saudi Arabia’s economy is projected to grow by 3.3 percent in 2025 and 4.1 percent in 2026.

“Global growth is steady but underwhelming. Our five-year ahead growth forecast remains at 3.1 percent— well below the pre-pandemic average of 3.7 percent,” said Clarke.

He added: “Patterns of trade and capital flows are shifting. AI (artificial intelligence) is rapidly advancing. Trade is no longer the engine of global growth it used to be. Divergences across countries are widening. And governments worldwide are shifting their policy priorities.”

Clarke argues that countries should pursue structural reforms to boost productivity and ensure medium-term growth.

He further said that in aging societies— where the share of the working-age population is shrinking— productivity growth plays a vital role in maintaining living standards.

“It also applies to emerging markets and developing economies trying to close the gap with richer countries. To provide better jobs and a higher standard of living, they too need to ignite productivity growth,” added the deputy managing director.

He added that this productivity growth could be achieved only by innovation, technological advancements, and ample investments in research and development.

Citing IMF research, Clarke highlighted that productivity growth in advanced economies could increase by 0.2 percentage points a year with a hybrid policy that boosts public research expenditure by a third and doubles subsidies to private research.

He noted that AI could boost global gross domestic product growth between 0.1 and 0.8 percentage points per year in the medium term, depending on how it is adopted.

Clarke also underscored the necessity of better resource allocation in the future to maintain a healthy global productivity level.

“The movement of labor and capital toward more productive firms and industries has long been an important source of overall productivity growth. As workers move from farms to factories, for example, their productivity increases dramatically. So too do their income and living standards, with spillovers to the whole economy,” he said.

According to Clarke, effective measures should be taken to strengthen the private sector, as well as create an environment that could help them thrive.

“Through our policy advice, lending and capacity development, the IMF has consistently supported countries in establishing macroeconomic and financial stability as a foundation for growth,” said Clarke.

He added that a new IMF Advisory Council on Entrepreneurship and Growth has been created to help countries develop ideas on easing regulatory barriers, adapting tax systems, and incentivizing long-term savings to boost innovation.

Topics: IMF Forecast

Gulf SWFs’ assets to hit $18tn by 2030, report says

Updated 8 min 41 sec ago

Nirmal Narayanan

March 23, 2025 13:29

Gulf SWFs’ assets to hit $18tn by 2030, report says

Updated 8 min 41 sec ago

Nirmal Narayanan

March 23, 2025 13:29

RIYADH: Gulf sovereign wealth funds are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion.

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.”

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.”

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024.

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA.

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023.

Asia takes center stage

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets.

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India.

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024.

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms.

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted.

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities.

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies.

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets.

Combating challenges

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated.

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent.

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated.

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players.

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.”

Topics: SWF Gulf Saudi PIF Investment debt

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD

Updated 27 min 15 sec ago

Miguel Hadchity

March 23, 2025 13:06

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD

Updated 27 min 15 sec ago

Miguel Hadchity

March 23, 2025 13:06

RIYADH: Global borrowing hit a record $25 trillion in 2024, a $10 trillion surge from pre-pandemic levels, sparking concerns over sustainability, a new report showed.

The Organization for Economic Co-operation and Development said in its latest study, “Financing Growth in a Challenging Debt Market Environment,” that the figure is nearly triple the amount raised in 2007, driven by rising sovereign and corporate debt amid higher borrowing costs and economic volatility.

The surge in borrowing reflects a fragile global economy grappling with slower growth, persistent inflation, and geopolitical uncertainty, which have forced governments and companies to seek more debt to fund operations and maintain public services.

OECD Secretary-General Mathias Cormann said: “Sovereign and corporate debt levels continue to grow across the world, at a time of increasing borrowing costs and market volatility.” He urged governments to improve public spending efficiency, prioritize productive investments, and incentivize businesses to expand capacity.

Rising debt levels

The analysis warned that debt levels are projected to continue rising into 2025, with the aggregate central government marketable debt-to-gross domestic product ratio in OECD countries expected to reach 85 percent. This represents an increase of more than 10 percentage points since 2019, nearly double the 2007 level.

“The increase in 2024 was the first since 2020, reflecting slower projected GDP (gross domestic product) growth of around 2 percent annually during this period, compared to over 4 percent in 2022-23, when the economy was recovering from the pandemic,” the report said.

Bond yields in several major markets surged despite declining policy rates, exacerbating the challenges posed by higher sovereign and corporate indebtedness. This scenario increases borrowing costs and limits the fiscal space available for future investment at a time when substantial capital is needed to drive economic growth, respond to demographic changes, and meet defense and infrastructure needs.

Record bond issuance

Sovereign bond issuance in OECD countries is projected to reach a historic high of $17 trillion in 2025, up from $14 trillion in 2023. The total outstanding debt is expected to grow from $54 trillion in 2023 to nearly $59 trillion in 2025.

Emerging markets and developing economies also witnessed a sharp increase in sovereign borrowing, with total debt issuance rising from approximately $1 trillion in 2007 to over $3 trillion in 2024. China accounted for 45 percent of the total issuance in 2024, a rise from the 17 percent recorded between 2007 and 2014.

By the end of 2024, global corporate bond debt is set to reach $35 trillion, continuing a decades-long borrowing trend, mainly driven by non-financial companies whose debt has nearly doubled since 2008.

Higher borrowing costs

Governments and corporations are beginning to feel the weight of higher borrowing costs. In 2024, interest payments as a share of GDP increased in about two-thirds of OECD countries, reaching an average of 3.3 percent — a growth of 0.3 percentage points from the previous year.

“This means spending on interest payments is greater than government expenditure on defense in the OECD on aggregate,” the report explained.

Additionally, refinancing risks have grown significantly, with nearly 45 percent of sovereign debt in OECD countries set to mature by 2027. Corporate bond markets face similar pressures, with approximately one-third of all outstanding corporate bond debt scheduled to mature in the next three years.

Refinancing this debt at higher interest rates could further strain public and corporate finances.

Debt ownership shifts

The withdrawal of central banks from sovereign debt markets continued in 2024, with their holdings of domestic government bonds in OECD economies shrinking from 29 percent of total outstanding debt in 2021 to 19 percent in 2024.

Simultaneously, domestic households increased their share from 5 percent to 11 percent, while foreign investors expanded their holdings from 29 percent to 34 percent. This transition to a more price-sensitive investor base could amplify market volatility, particularly if new investors demand higher yields.

Climate financing challenges

A key theme of the OECD’s report is the financing required to meet global climate change objectives.

“If growth rates for public and private investment in the climate transition continue in line with recent trends, advanced economies will not be aligned with the Paris Agreement goals until 2041,” the study said.

The situation is even more difficult for emerging markets other than China, which would face a cumulative investment shortfall of $10 trillion to meet the Paris Agreement goals by 2050.

The report suggested that increasing public sector financing for climate initiatives could substantially raise public debt-to-GDP ratios. Alternatively, greater reliance on private capital would necessitate rapid development of capital markets, particularly in emerging economies.

“Financial regulation reforms will be essential, particularly to enhance capital market development in emerging markets,” the study noted.

Topics: global debt GDP OECD

Tabuk’s business journey — a navigation of growth and vision

Updated 22 March 2025

Reem Walid

March 22, 2025 23:22

Tabuk’s business journey — a navigation of growth and vision

Tabuk has ambitious plans for further development, growth, and economic diversification

Updated 22 March 2025

Reem Walid

March 22, 2025 23:22

RIYADH: A young workforce, strong demand and attractive tourist offerings are helping transform Tabuk into one of Saudi Arabia’s most dynamic regions.

Earlier in March, the area’s mayor, Hussam bin Muwafaq Al-Youssef, talked up the investment potential of the region during a speech as part of the “Chamber’s Diwaniya” events during Ramadan.

Addressing business leaders, he said the municipality has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

He highlighted some of the region’s competitive advantages, such as manufacturing, agriculture, mining, energy and tourism, which have contributed to boosting Tabuk’s investment appeal.

Al-Youssef’s comments came after a stellar 2024 for Tabuk, which saw significant achievements in its business landscape, such as the launch of Sindalah island in NEOM and the inauguration of Nujma, a Ritz-Carlton Reserve, in the Red Sea.

Global engagement was amplified through events such as the Tabuk Toyota Rally, and efforts were also directed towards enhancing infrastructure.

Tabuk’s business journey

Nicholas Nahas, partner at Arthur D. Little, Middle East, said the region has worked to raise its profile in the business world by expanding output and leasing agreements in the Tabuk industrial city.

“It also advanced on its plans to upgrade key infrastructure, including Tabuk airport, which increased flight operations by 25 percent, bringing more people to the region to increase tourism and economic activity,” he added.

Ian Khan, a technology futurist and author, shed light on how Tabuk has benefited benefited from the Saudi government’ funding the Saudi government to highlight the region’s forward-thinking strategies and commitment to growth.

“The Ministry of Investment’s identification of nearly $13.3 billion in investment opportunities speaks volumes about Tabuk’s bold vision — particularly in renewable energy, agriculture, tourism and entrepreneurship. These sectors position Tabuk as a burgeoning hub along the Red Sea, primed to attract future-focused ventures and travelers alike,” Khan told Arab News.

Wadi Al-Disah in the Tabuk region is one of the most famous valleys in western Saudi Arabia. (Shutterstock)

He added that the Roads General Authority “truly accelerated” Tabuk’s connectivity by developing over 8,000 km of new networks and constructing more than 200 bridges.

“These roads and bridges don’t just help people get from A to B — they connect Tabuk to key mega-projects like NEOM, Amaala, and the Red Sea,” Khan said, adding: “This synergy multiplies Tabuk’s commercial, touristic, and social opportunities, creating a dynamic ecosystem where innovation thrives.”

The author went on to say one of the most exciting recognitions for Tabuk came in April 2024, when the World Health Organization designated the region as a “Healthy City.”

He said: “This honor underscores Tabuk’s unwavering dedication to enhancing residents’ quality of life through robust health and environmental initiatives, setting a powerful precedent for future urban development in the Kingdom.”

Tabuk’s plans

Tabuk has ambitious plans for further development, growth, and economic diversification in tourism, information and communications technology, agriculture and renewable energy.

From ADL’s point of view, Nahas explained that in the tourism sector, even with NEOM, Red Sea and Amaala opening up their first attractions, Tabuk still has much to offer.

“The region includes many heritage sites, including the ‘Saudi Grand Canyon,’ an area between Hisma Mountains and Qaraqir Valley, with offerings ranging from sun and sand to adventure sports to culture,” he said.

“The region has 27 hotels and 60 furnished apartments, accounting for almost 4,000 available rooms. To successfully navigate its journey, Tabuk should continue attracting tourists to maximize occupancy while increasing hotel and hospitality supply.”

Beyond tourism, the Tabuk province will also contribute to the ICT and renewable energy sectors.

Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

Ian Khan, technology futurist and author

NEOM, which positions itself as a cognitive city, offers unparalleled connectivity for doing business and will enable advanced technologies, including self-driving vehicles and augmented reality/ virtual reality experiences, according to Nahas.

“NEOM’s ambition will fuel the province’s ICT ambition and will contribute to the country’s overall innovation ambitions. In the renewable energy sector, due to Tabuk’s extensive natural resources of sun and wind, Tabuk will offer opportunities for photovoltaic power plants and coastal wind farms,” added Nahas.

Similarly, Khan said Tabuk was not slowing down as it looked ahead, citing international investment forums and a new logistics hub as moves that will turbocharge Tabuk’s status as a prime destination for global investors.

The author added: “On the tourism side, Tabuk Investment & Tourism launched four subsidiary companies in January 2024, focusing on hospitality, facility management, events and eco-friendly services. These ventures exemplify how Tabuk is pairing world-class hospitality with sustainability — perfectly in line with the overarching goals of Saudi Vision 2030.”

Khan believes that Tabuk’s “multi-pronged roadmap” — ranging from health initiatives to tourism and tech — reflects a future-focused mentality, anchored firmly in the transformative power of Saudi Vision 2030.

“It’s not just about building roads or eco-friendly hotels; it’s about shaping a legacy that will define the Kingdom’s next chapter. And from my vantage point as a futurist, Tabuk’s story is just getting started,” he said.

Tabuk — a key player in economic diversification

Unlocking these opportunities will require private and foreign investment, along with strong collaboration across the region’s stakeholders to fully realize the region’s potential and ensure an integrated approach to infrastructure and promotion.

Nahas from ADL said that according to the Saudi Ministry of Investment, SR40 billion ($13.3 billion) of investment opportunities remained available.

It is certainly becoming easier for speculators to visit the region, which boasts three airports; Tabuk International, NEOM Bay and Al Wash Airport connect it to key international destinations such as Dubai and Cairo, as well as local hubs including Riyadh and Madinah.

FASTFACT

Tabuk has over 120 available investment prospects across different sectors, including large, medium and small-scale projects.

From ADL’s perspective, these airports will need to continue to expand operations and connectivity to bring people to the region.

“Connectivity by road and sea will also be important. Tabuk boasts one of the region’s most connected road networks, which (is) further being upgraded to accommodate the region’s economic development for the movement of people and goods,” Nahas said.

He added that promoting the region would also require an integrated approach across its development clusters and, in addition to the Saudi Tourism Authority, it would also need to work closely with destination management companies and marketing organizations.

“These stakeholders will be able to coordinate, promote, and sell Tabuk’s rich portfolio of offerings in an integrated portfolio to the world. These initiatives will further raise Tabuk’s status as a business and tourism destination for the world, in 2025 and beyond,” said Nahas. From Khan’s point of view, Tabuk’s strides mirror the exact ethos of Saudi Vision 2030 — resilience, diversification and boundary-pushing innovation.

“By harnessing its abundant sunlight and wind resources, Tabuk is doubling down on renewable energy projects that support the national objective of generating 50 percent of electricity from renewables by 2030. This is not just an energy strategy; it’s a blueprint for building a sustainable, future-ready economy,” he said.

Khan stressed that by attracting substantial foreign investment, NEOM broadens Tabuk’s economic base and unlocks new possibilities across construction, tech and services.

“Moreover, the University of Tabuk is nurturing a new generation of disruptors and innovators. By offering specialized programs in engineering, computer science, health sciences and business administration, the university ensures that Tabuk’s workforce is prepared to sustain this wave of progress across multiple industries,” he said.

Topics: tabuk saudi tourism

How Saudi Arabia is engineering a water-secure future

Updated 22 March 2025

MOHAMMED AL-KINANI

March 22, 2025 23:00

How Saudi Arabia is engineering a water-secure future

KSA is leveraging advanced technologies to drive long-term sustainability and operational efficiency

Updated 22 March 2025

MOHAMMED AL-KINANI

March 22, 2025 23:00

JEDDAH: Saudi Arabia is tackling water scarcity with bold steps toward a sustainable future. Through its National Water Strategy and Vision 2030, the Kingdom is pioneering solutions to ensure long-term water availability.

Investing in desalination, wastewater reuse, and smart water management, Saudi Arabia is transforming the sector.

The National Water Co. supports Vision 2030 by accelerating projects, improving infrastructure, and implementing digital water management for sustainability.

Water sustainability strategy

Hany Labib, chief operating officer of international consulting and engineering organization Dorsch Middle East, told Arab News that Saudi Arabia’s structured approach to water sustainability ensures that security of the natural resource remains central to national development.

“The National Water Strategy and Vision 2030 have created a framework that balances infrastructure expansion, regulatory reforms, and advanced water management practices to address the Kingdom’s water scarcity challenges,” he said.

Labib noted that a key pillar of this strategy is investing in water infrastructure, highlighting his company’s partnership with Saudi Arabia’s NWC to oversee 253 projects, enhancing efficiency and service delivery.

“These projects are designed to reinforce water distribution networks, improve wastewater treatment, and ensure long-term water reliance and a positive customer experience,” he added.

Public awareness campaigns underscore conserva-tion’s importance amid climate pressures and population growth.

Adham Sleiman, water utilities expert at Kearney MEA

Another key initiative is Saudi Arabia’s focus on optimizing resource use by reducing water losses and maximizing wastewater reuse.

“With a considerable investment, this key initiative is not just addressing immediate water demands but also ensuring the sustainability of resources for future generations. By aligning sustainability goals with economic and environmental objectives, Saudi Arabia is setting a benchmark for comprehensive water management strategy within the region,” said Labib.

Smart water tech push

Saudi Arabia is leveraging advanced technologies to drive long-term sustainability and operational efficiency in the water sector.

Labib highlighted future technologies shaping Saudi Arabia’s sustainability and efficiency goals, noting the Kingdom’s leadership in smart water management solutions.

“With a growing number of water and wastewater projects in motion, technology is playing an increasingly critical role in optimizing resources, reducing waste, and ensuring long-term viability,” he said.

The Dorsch Middle East official explained that one of the most transformative innovations is the expansion of treated wastewater reuse, reducing reliance on freshwater sources while meeting industrial and agricultural needs.

“In parallel, real-time digital monitoring systems are improving network efficiency by detecting leaks, tracking consumption patterns, and optimizing distribution,” he said.

Labib noted that low-energy desalination and next-generation filtration technologies will boost sustainability in water production.

He emphasized that through these innovations, Saudi Arabia is not only securing its own water future but also creating scalable solutions that other arid regions can adopt.

“In a fast-changing world of technology, Saudi Arabia seeks to be at the forefront of emerging technologies and make use of data in their water investment decisions. AI is a new tool which can greatly assist in the analysis of data arising from smart water systems including customer usage patterns,” said Labib.

Integrated water strategy

Adham Sleiman, water utilities expert at Kearney MEA, highlighted Saudi Arabia’s integrated water sustainability approach under its national strategy, emphasizing its long-term vision.

“The Kingdom advances desalination, groundwater conservation, and wastewater reuse, as well as leveraging smart technologies and renewable energy. Investments in digital monitoring, smart metering, and AI-driven leak detection enhance efficiency,” he said.

Sleiman noted that the strategy strengthens policy frameworks and governance to optimize water use, highlighted by the recent establishment of the Saudi Water Authority. In 2024, the NWC treated 2.1 billion cubic meters of wastewater, ensuring water security, sustainability, and efficiency. “These efforts reinforce Saudi Arabia’s commitment to a resilient water future,” Sleiman said.

Saudi Arabia is at the center of water sustaina-bility initiatives, hosting major forums like the Saudi Water Forum and the One Water Summit.

Azamat Zhangeldin, manager, energy and process industries at Kearney MEA

PPPs driving innovation in sector

As for public-private-partnerships in the sector, Sleiman emphasized that PPPs are key to advancing Saudi Arabia’s water infrastructure in alignment with Vision 2030, driving innovation and investment in the sector.

“The Saudi Water Partnership Co. has attracted over SR45 billion ($12 billion) in private sector investments, fostering efficiency and innovation in water production and treatment. Saudi water ecosystem’s collaborations with international firms introduce advanced technologies, such as energy-efficient desalination and smart water management systems,” Sleiman said.

He added that these partnerships distribute risks and leverage private sector expertise, leading to improved service quality and accelerated project delivery. “By expanding PPP frameworks, Saudi Arabia is strengthening its water security and promoting sustainable resource management,” said Sleiman.

Addressing climate risks

Azamat Zhangeldin, manager, energy and process industries at Kearney MEA, highlighted how Saudi Arabia is preparing to address climate-related risks, such as prolonged droughts or shifting rainfall patterns, to ensure long-term water availability and resilience.

“Saudi Arabia is at the center of water sustainability initiatives, hosting major forums like the Saudi Water Forum and the One Water Summit, emphasizing integrated policies, economic development, and accelerating UN SDG (sustainable development goal) 6,” he told Arab News.

He added that recognizing limited freshwater sources, the Kingdom has invested heavily in desalination, with 33 plants and 139 purification facilities producing 11.5 million cubic meters daily.

“Public awareness campaigns underscore conservation’s importance amid climate pressures and population growth,” he said, concluding that these solutions, encompassing desalination, purification, dam construction, and flood management, enhance water resilience and storage, ensuring long-term availability and mitigating climate-induced risks.

Balanced approach

Dorsch Middle East’s Labib emphasized that sustainable urban planning is key to developing water security, citing initiatives such as Green Riyadh, which incorporate water-efficient irrigation and landscaping for long-term conservation.

He added that through strong policies, innovative technologies, and large-scale infrastructure projects, Saudi Arabia is creating a resilient, efficient water system that ensures secure access for future generations.

“The Kingdom’s ability to implement projects at scale while maintaining efficiency and resource optimization makes it a model for other nations facing similar water challenges,” said Labib.

He believes Saudi Arabia is creating a replicable blueprint for sustainable water management, and added: “The Kingdom’s success lies in its centralized water strategy, where strong governance frameworks, public-private partnerships, and technological advancements work in unison to achieve long-term water security.”

Topics: Saudi Arabia water scarcity water security

Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

Global economic growth to average at 3.1% in next 5 years: IMF official

Global economic growth to average at 3.1% in next 5 years: IMF official

Gulf SWFs’ assets to hit $18tn by 2030, report says

Gulf SWFs’ assets to hit $18tn by 2030, report says

Egypt’s sovereign fund enters top 50 global wealth list: SWFI

Aramco deal pushes Saudi Arabia’s PIF up in global ranking: SWFI

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD

Global borrowing hits $25tn in 2024, raising debt sustainability fears: OECD

Global debt marches to record high, raising risk of bond vigilantes, IIF says

Global borrowing hits record $217 trillion: Report

Tabuk’s business journey — a navigation of growth and vision

Tabuk’s business journey — a navigation of growth and vision

FASTFACT

Tabuk offers over 120 investment opportunities, driven by young workforce, strong demand

Water freezes as polar wave grips Tabuk, northern region experiences chilly spell

How Saudi Arabia is engineering a water-secure future

How Saudi Arabia is engineering a water-secure future

How Saudi Arabia is pioneering soil quality and water conservation solutions

Saudi Arabia to build 16 new water purification plants

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Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

Japan keen to forge partnerships with Saudi Arabia in the field of IT, says minister

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