Saudi Arabia climbs to 16th place in World Competitiveness Index

Saudi Arabia climbs to 16th place in World Competitiveness Index
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Updated 18 June 2024
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Saudi Arabia climbs to 16th place in World Competitiveness Index

Saudi Arabia climbs to 16th place in World Competitiveness Index

RIYADH: Saudi Arabia’s ongoing economic diversification efforts have propelled the country to the 16th spot in the World Competitiveness Index 2024, up one place from the previous year.

According to a report from the Switzerland-based International Institute for Management Development, the Kingdom was ranked 24th in 2022 and 32nd in 2021.

The ascent, supported by Saudi Arabia’s Vision 2030 program, is attributed to significant progress in economic performance, government efficiency, and a business-friendly environment.

The report also highlighted that Saudi Arabia ranked higher than several of its G20 peers, including India, the UK, and Japan, as well as other countries like Italy, Argentina, Indonesia, and Brazil and Turkiye.

Majid bin Abdullah Al-Qasabi, Saudi Arabia’s minister of commerce, said that the nation’s growth in the ranking is a testament to the Kingdom’s ongoing economic transformation process, which is being implemented in accordance with the directives of Crown Prince Mohammed bin Salman, according to a press statement. 

Saudi Arabia leading several subindicators in the ranking 

The Kingdom also grabbed top spots in several subindicators in the ranking, garnering the first position in cybersecurity and long-term employment growth. 

Saudi Arabia was also ranked first in other subindicators, including long-term labor market growth and the number of internet users per thousand people. 

The report revealed that the Kingdom was ranked 12th in business efficiency globally, while it secured second place in stock market capitalization and digital transformation implemented in companies. 

Saudi Arabia was also ranked second in indicators such as the availability of venture capital, the development and application of technology, and the availability of financing in technical development. 

Similarly, the nation was ranked third in total early-stage entrepreneurial activity and unemployment legislation. 

The Kingdom also grabbed the 34th spot in the list for infrastructure growth, unchanged from the previous two years. In 2020 and 2021, the country’s ranking in this subsection was 36. 

However, in terms of economic performance, Saudi Arabia slipped to the 15th spot, down from the sixth position in the previous year but much higher than the 31st and 48th place it procured in 2022 and 2021, respectively. 

When it comes to challenges facing the Kingdom, the report flagged up the need to continue efforts to promote renewable energy and reduce carbon emissions.

It also highlighted how Saudi Arabia must keep enhancing its business environment to increase the private sector’s economic participation, as well as continuing to invest in human capital development across all sectors.

Singapore leads the list

Singapore secured first place in the World Competitiveness Index 2024, climbing three spots from the previous year. 

“The data shows a particularly robust performance for the island nation (Singapore) across the areas of government efficiency and business efficiency,” said the report. 

It added: “In the case of Singapore, potential headwinds to maintaining its position include seizing opportunities and managing disruptions from new technologies, such as AI, by supporting workers in reskilling and businesses in transformation.” 

The release further pointed out that Singapore’s small size and maritime setting have also helped it to top the list. 

Arturo Bris, director of the IMD World Competitiveness Center, said that the ranking, which is published annually, will help nations achieve their economic goals and ensure sustainability. 

“It serves as a benchmark for these countries to measure their progress and identify areas for improvement, offering a clear path toward their economic development but also supporting global goals such as the social development goals,” said Bris. 

He added: “The best-performing economies balance productivity and prosperity, meaning they can generate elevated levels of income and quality of life for their citizens while preserving the environment and social cohesion.” 

Singapore was followed by Switzerland and Denmark in the second and third spots, respectively. 

Ireland was ranked fourth on the list, while Hong Kong and Sweden grabbed the fifth and sixth spots, respectively. 

Climbing three positions compared to 2023, the UAE came in seventh place, followed by Taiwan and the Netherlands in eighth and ninth, respectively. 

On the other hand, Norway climbed four spots from the previous year to 10th place, while Qatar improved its ranking from 12th to 11th this year. 

The US, however, slipped by three positions from 2023 to secure the13th rank, followed by Australia, China, and Finland in the next three spots. 

Bahrain was ranked 21st on the list from the Middle East region, while Kuwait secured the 37th spot. 

The promises and challenges offered by artificial intelligence 

According to the report, the widespread adoption of AI seems like a honey pot to economies seeking productivity boosts. 

“At the micro level, the recent surge in AI-based technologies could boost efficiency and productivity significantly,” said World Competitiveness Center Senior Economist Jose Caballero.

He further noted that the rise of AI is also posing significant challenges, with several companies seeming less proficient in implementing this advanced technology. 

“One of the key challenges for companies is how to implement AI systems that improve efficiency without disrupting business activities. Another is ensuring a chosen AI system’s accuracy; inaccurate systems lead to inefficiencies and reduced productivity,” said Caballero. 

He added: “Furthermore, there is a cost-related challenge given that initial investments in AI technology can be substantial while the ongoing costs of maintenance and upgrades to the systems can be significant.” 

The study further pointed out that AI is the top concern for executives from Western Europe, Western Asia and Africa, and Central Asia, as well as, Southern Asia and the Pacific, North America, and South America.

On the other hand, executives from Eastern Asia and Eastern Europe are most concerned about a global recession, while most participants across the board deprioritize environmental risks. 

“With executives under pressure to balance short-term and long-term priorities, environmental risks are being pushed to the back of the queue,” said the report. 


Saudi Arabia launches digital platform to aid ocean health monitoring

Saudi Arabia launches digital platform to aid ocean health monitoring
Updated 8 sec ago
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Saudi Arabia launches digital platform to aid ocean health monitoring

Saudi Arabia launches digital platform to aid ocean health monitoring

RIYADH: Saudi Arabia has unveiled Ocean Central, a first-of-its-kind digital platform offering a view of marine health to aid global regeneration efforts. 

The platform, revealed at the Future Investment Initiative by the Kingdom’s Ambassador to the US Princess Reema bint Bandar, was developed in partnership with Wave to integrate data, design, storytelling, and strategy into accessible insights. 

Ocean Central allows users worldwide to understand health trends of the sea, identify data gaps, and work toward comprehensive restoration.

Princess Reema highlighted the need for shared understanding and collaboration to achieve ambitious ocean regeneration goals. 

“Countries are setting ambitious targets to regenerate a thriving ocean, but what’s been missing is a clear view of the journey,” she said. 

The ambassador continued: “By working together and leveraging data, Ocean Central will act as a catalyst for ocean regeneration by highlighting successful initiatives, identifying gaps in ocean data, and building a shared understanding of the ocean.”

The platform aligns with global objectives, integrating targets from the UN Sustainable Development Goals, the Kunming-Montreal Global Biodiversity Framework, and the 2015 Paris Agreement, to track both 2030 and 2050 milestones toward a regenerated ocean. 

It facilitates the collection and analysis of data on marine biodiversity, coastal preservation, and other key areas to drive informed action.

Princess Reema called for global collaboration, urging individuals, scientific communities, and industries to unite in the endeavor. 

“Together, we can build a collective understanding of ocean health and ensure a thriving ocean by 2050.” she said.


Riyadh Air orders 60 next-generation Airbus A321 aircraft

Riyadh Air orders 60 next-generation Airbus A321 aircraft
Updated 8 min 59 sec ago
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Riyadh Air orders 60 next-generation Airbus A321 aircraft

Riyadh Air orders 60 next-generation Airbus A321 aircraft
  • Strengthening the operations of Riyadh Air is crucial for Saudi Arabia as the Kingdom is evolving itself as a global tourism destination
  • New order will also support the airline’s long-term goal of creating 200,000 jobs and delivering enhanced connectivity

RIYADH: Saudi Arabia’s Riyadh Air, a subsidiary of the Public Investment Fund, has signed an agreement to purchase 60 Airbus A321neo single-aisle aircraft, as it plans to commence its operations in 2025. 

According to a press statement, the deal was signed by Tony Douglas, CEO of Riyadh Air, and Christian Scherer, CEO of Commercial Aircraft of Airbus, at the 8th Future Investment Initiative in the Kingdom’s capital city.  

Strengthening the operations of Riyadh Air is crucial for Saudi Arabia as the Kingdom is evolving as a global tourism destination, aligned with the economic diversification goals outlined in the Vision 2030 program. 

In September, the airline launched its first non-commercial flight from Riyadh’s King Khalid International Airport as part of the certification process.

Last year, the airlines had ordered 39 Boeing 787 Dreamliners with options for 33 more, thus bringing the estimated fleet capacity to 132.

The Airbus A321neo airliner is widely considered the most sustainable and efficient aircraft in the aviation industry. AN/Abdulrhman Bin Shalhuob

“We are pleased to embark on another key milestone in Riyadh Air’s journey with the carrier’s second major fleet order, this time in partnership with Airbus,” said Yasir Al-Rumayyan, governor of PIF and chairman of Riyadh Air. 

He added: “This deal underlines the airline’s ambitious intentions in advance of next year’s launch as it builds a comprehensive international network and establishes Riyadh as a major strategic global aviation hub.”

The Airbus A321neo airliner is widely considered the most sustainable and efficient aircraft in the aviation industry, and it is expected to fulfill Riyadh Air’s ambition to cover 100 destinations worldwide by the end of this decade, the press statement said. 

Riyadh Air added that the new order will also support the airline’s long-term goal of creating 200,000 jobs and delivering enhanced connectivity to Riyadh to the world. 

“This order will not only enable us to support economic growth in the aviation industry, it will also ensure Riyadh Air operates one of the most sustainable fleets in the industry and be instrumental in helping Saudi Arabia achieve its net-zero emissions goals,” said the CEO of Riyadh Air. 

Douglas added: “This deal strongly reinforces the positive economic impact of Saudi Arabia’s newest airline on both a global and local scale and helps facilitate the fast-growing local aviation ecosystem.” 

The chief of Commercial Aircraft at Airbus said that the latest generation A321neo aircraft will bring exceptional efficiency to Riyadh Air’s operations and comfort to its passengers. 

“We look forward to working together to support the incredible growth of Saudi aviation,” added Scherer. 


Saudi aviation to enhance innovation, sustainability through new alliance

Saudi aviation to enhance innovation, sustainability through new alliance
Updated 1 min 19 sec ago
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Saudi aviation to enhance innovation, sustainability through new alliance

Saudi aviation to enhance innovation, sustainability through new alliance
  • Parties inked the agreement on the sidelines of the eighth edition of the FII in Riyadh
  • KSIADC will join an extensive network dedicated to developing solutions for worldwide challenges through FII’s platform and global connections

JEDDAH: The Saudi aviation sector will benefit from a strategic alliance between the King Salman International Airport Development Co. and the Future Investment Initiative Institute to enhance innovation and sustainability.

The two parties inked the agreement on the sidelines of the eighth edition of the FII in Riyadh, a gathering of global leaders and decision-makers in business, politics, and investment.

Marco Mejia, acting CEO of KSIADC, and Richard Attias, CEO of the FII Institute, attended the signing ceremony.

The KSIADC will join an extensive network dedicated to developing solutions for worldwide challenges through FII’s platform and global connections. KSIADC, one of Saudi Arabia’s sovereign wealth fund firms, supports Vision 2030’s aim of establishing Riyadh as an international hub for transportation, trade, and tourism.

Developed in Riyadh, the airport will have six parallel runways and is expected to contribute SR27 billion ($7.18 billion) annually to the Kingdom’s non-oil gross domestic product.

Saudi Arabia is hosting the eighth edition of the Future Investment Initiative summit in Riyadh. AN/Abdulrhman Bin Shalhuob

Mejia said: “King Salman International Airport is a pioneering project focused on delivering innovative, high-quality, and sustainable solutions,” he said.

He added that they are working to set new global standards in airport design and operations to become an international benchmark in aviation.

“This strategic partnership with the FII Institute will help achieve this goal, paving the way for a sustainable future that empowers humanity and protects the land,” he said.

KSIA will help drive annual passenger traffic in Saudi Arabia from the current 29 million to 120 million travelers by 2030 and 185 million by 2050, with aircraft traffic in the Kingdom increasing from 211,000 to more than 1 million flights per year.

The airport is among the ambitious projects supporting the Kingdom’s Vision 2030, leveraging its strategic location connecting Asia, Africa, and Europe, establishing Riyadh as a global destination for transportation, trade, and tourism.

The partnership is set to enhance the airport’s standing in innovation and sustainable development, underscoring its contribution to shaping the future of global aviation and building a sustainable world, according to the Saudi Press Agency.

Attias welcomed KSIADC to the FII Initiative, adding that: “By joining, the company becomes part of a unique group of leading companies and organizations providing the expertise, strategies, and leadership needed to tackle contemporary global challenges and advance our mission to positively impact humanity.” 


Esports is the future of mainstream sports, says SEF chairman

Esports is the future of mainstream sports, says SEF chairman
Updated 57 min 25 sec ago
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Esports is the future of mainstream sports, says SEF chairman

Esports is the future of mainstream sports, says SEF chairman

RIYADH: Esports is emerging as “the mainstream sport of the future,” reflecting Saudi Arabia’s ambition to position itself as a global hub for the industry, according to a top official. 

Speaking during a panel at the Future Investment Initiative, Prince Faisal bin Bandar Al-Saud, chairman of the Saudi Esports Federation, emphasized the rapid growth of esports, noting that younger generations view gaming as an integral part of their lives, engaging as players, viewers, professionals, and coaches.  

“They’ve known esports from birth,” he said, contrasting their experience with that of older generations.   

Prince Faisal further added that esports and traditional sports are getting “closer in spirit, in viewership, in participation, and in values.”

He stated that innovations in esports will soon become reality like the Olympics Esports Games.  

“When we talk about hours watched, you’re referring to over 100 million hours for the NFL (National Football League) and 50 million hours for the Olympics. In our recent event at the here in the Esports World Cup, we had 111 million hours watched, not including China. If you include China, that adds another 140 million hours, bringing the total to 250 million hours,” he said. 

Prince Faisal emphasized that Saudi Arabia’s strategy to become a global leader in gaming involves fostering collaboration between the public and private sectors, setting measurable goals, and uniting all stakeholders under a shared national vision.   

“We want Saudi Arabia to be a natural part of the conversation,” he said, referring to established esports centers like Japan, South Korea, and the US. “When you think about a career path in this industry, you think about coming to Saudi as much as you think about going to any of those other countries.”  

According to him, the most important aspect of their efforts was launching a gaming and esports authority that would encompass the national strategy for gaming and esports. 

The Kingdom’s strategy includes creating a supportive regulatory environment, establishing key performance indicators to guide progress, and bringing all entities together under “Team Saudi.”   

This unified approach, according to Prince Faisal, will pave the way for Saudi Arabia to become a significant player in the global gaming landscape and make it a destination for talent and innovation in esports.  


AlUla’s non-tourism sector economically buoyant, RCU chief says

AlUla’s non-tourism sector economically buoyant, RCU chief says
Updated 30 October 2024
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AlUla’s non-tourism sector economically buoyant, RCU chief says

AlUla’s non-tourism sector economically buoyant, RCU chief says

RIYADH: The Royal Commission for AlUla is reshaping the city’s economy, with non-tourism sectors contributing around SR7 billion ($1.86 billion) to Saudi Arabia’s gross domestic product, a senior official said.

During a panel session at the Future Investment Initiative in Riyadh, Abeer Al-Akel, acting CEO of RCU, highlighted that this figure nearly matches AlUla’s tourism contribution to the Kingdom’s gross domestic product at around SR9.5 billion.

Al-Akel said that the commission is working to diversify the city’s economic foundation and provide the local community with inclusive growth opportunities.

She added: “People might not know that the contribution of non-tourism sectors in AlUla is basically around SR7 billion, which is a very close amount to the tourism, right? 

“We are basically working with the local community in ensuring that we provide the local community with opportunities for them to participate in what we do in AlUla.”

As part of RCU’s diversification strategy, agriculture ranks as the second-largest sector in AlUla after tourism.

The commission has committed to improving farming practices and enhancing the entire agricultural value chain — from production and packaging to buyer connectivity.

“We’re aiming to empower our farming community and introduce local produce to a broader market,” Al-Akel said, underscoring RCU’s goals of fortifying AlUla’s food ecosystem and increasing local producers’ market reach.

She continued: “We’re really doing this for three main reasons. One is to ensure that we create and advance the food ecosystem in AlUla and expand it, but we’re also doing this to empower our farming community.

Al-Akel added: “Finally, is to mainly do that because of introducing local produce to a bigger networking market.”

Furthermore, RCU’s efforts to establish AlUla as a regional film hub are underway, with recent successes including the blockbuster movie Kandahar featuring Gerard Butler.

She explained that AlUla now boasts a world-class, 30,000 sq. meter production facility, positioning it as a major destination for international film production.

With 700 production days already recorded, the sector is set to contribute to the economy and foster local creative talent both in front of and behind the camera.

AlUla’s historic role as an ancient crossroad of civilizations is being revitalized through strategic international partnerships.

RCU collaborates with leading global organizations such as UNESCO and the World Bank, working toward shared goals of cultural conservation, environmental preservation, and sustainable economic growth.

AlUla’s comprehensive eco-friendly approach, guided by its 12-point Sustainability Charter, places environmental and cultural preservation at the forefront of all initiatives.

As Al-Akel emphasized, the RCU’s mandate is to “strike a delicate balance between development and ecosystem progress,” ensuring that AlUla’s unique natural and cultural landscape is protected while fostering economic growth.

“We are on the right track, and we have achieved a lot in the past years; we have basically introduced and released over 2,300 animals into the wild,” Al-Akel said.

She continued to say that 50 percent of the lands are “basically protected,” adding: “We have recruited more than 150 Rangers that are now patrolling and monitoring those reserves.”