Startup of the Week – US-based SambaNova sets sights on Saudi market

Startup of the Week – US-based SambaNova sets sights on Saudi market
SambaNova Systems is one of the latest artificial intelligence player to invest in the region.
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Updated 14 September 2024
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Startup of the Week – US-based SambaNova sets sights on Saudi market

Startup of the Week – US-based SambaNova sets sights on Saudi market

CAIRO: Saudi Arabia’s potential as a global leader in artificial intelligence is drawing attention from major industry players, with SambaNova Systems being one of the latest to invest in the region.

The US-based, multi-billion-dollar AI solutions provider plans to deliver advanced infrastructure to support Saudi Arabia’s economic growth, aiming to position the Kingdom as a key hub for innovation and development.

The company specializes in providing advanced machine learning and AI solutions to enterprises.

SambaNova’s technology helps businesses accelerate adoption of the technology, improve decision-making, and drive operational efficiency across industries.

Marshall Choy, senior vice president of product at SambaNova Systems, highlighted the company’s intent to provide durable AI facilities that will fuel economic growth in the region, positioning Saudi Arabia as a key player in the industry.

“We are making a strategic investment in Saudi Arabia because the region — like the US — believes AI is a strategic imperative to fuel its economic growth and become a global hub for knowledge-based innovation,” Choy told Arab News.




Marshall Choy, senior vice president of product at SambaNova Systems. (Supplied)

He stated that AI is reshaping global dynamics and enabling businesses to gain a competitive edge by improving decision-making, reducing costs, and allowing companies to operate on-premise with enhanced data privacy.

A prosperous future

“Our goal is to provide durable AI infrastructure to promote the prosperous future of the Kingdom by deploying SambaNova Systems,” Choy added.

He also noted that collaboration with local Saudi organizations will be key in developing AI expertise in the region, stating that SambaNova aims to “help enable, through collaboration, durable model leadership to help establish the Kingdom’s leadership in the Middle East and North Africa.”

Choy also explained that the company’s expansion into Saudi Arabia will enable it to reach other Gulf countries.

Skill enablement, he said, will be another pillar of the partnership, achieved through structured training programs to foster deep expertise in AI engineering.

This expansion aligns with SambaNova’s broader strategic vision, which focuses on forming partnerships that support digital transformation for both government institutions and corporations. Choy noted that AI is increasingly essential for nearly every organization.

“Nearly every company needs to be an AI company. We believe AI is an asset, not a tool, and SambaNova delivers enterprise customers secure ownership of their models, as well as the ability to train them on their data, maximizing the value of their AI investment,” Choy said.

The senior vice president sees AI as an accelerant for productivity that will not only drive technology and business but societal and economic advancement.

Choy further emphasized the critical role of the Saudi government in the region’s AI expansion.

With the government’s $40- billion investment plan in the technology, there is strong support for the industry’s development.

“Having native sovereign AI capabilities in the Kingdom will enable that fast transition and acceleration from a technology and infrastructure perspective,” he added.

The company is also working with the Kingdom to build a strong infrastructure that will position the nation as a regional leader for the technology, Choy explained.

He highlighted that partnerships between government ministries, private enterprises, and providers like SambaNova will be fundamental to success, both at the national and corporate levels.

The company aims to be the number one AI provider in the Saudi market. Accordingly, SambaNova has partnered with the Kingdom’s largest company, Aramco.

The partnership saw SambaNova deploy systems on site for the energy giant, serving up AI capabilities for its internal intelligence system called Metabrain.

“Metabrain was a project where we co-developed an AI model trained on 90 years of Aramco historical data, this is a model that was completely built on SambaNova infrastructure,” Choy stated.

This model of collaboration has proven effective in other markets, and SambaNova expects the same success in Saudi Arabia.

Boosting the startup ecosystem

Beyond technological advancements, Choy stressed that AI would have a significant impact on the Kingdom’s growing startup ecosystem, fostering innovation and enabling businesses to scale.

“We see this as having a very profound impact on how the growing Saudi startup ecosystem is able to foster innovation and properly grow their businesses using state-of-the-art AI capabilities like SambaNova Suite,” Choy said.

The business environment in Saudi Arabia is also well-suited to SambaNova’s growth and innovation goals, according to the official.

He observed a “willingness and an appetite to engage, collaborate, and move forward quickly” in the Kingdom, fueled by the ambitious AI adoption and acceleration goals set by the Saudi government.

Looking to the future, SambaNova envisions further developments in its operations in the Kingdom, including co-designing with its Saudi partners to create more localized or regionalized solutions and capabilities specific for the domestic market.

“The people of Saudi Arabia are incredibly welcoming,” Choy said, adding: “I was thrilled to exchange ideas with people who are equally passionate about the possibilities of AI and how it will impact the way we all live and work.”

As SambaNova Systems continues to expand into Saudi Arabia, the company remains committed to its mission of helping the Kingdom achieve its long-term AI goals while contributing to the region’s broader digital transformation.


UN official issues urgent warning about growing global inequality

UN official issues urgent warning about growing global inequality
Updated 24 October 2024
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UN official issues urgent warning about growing global inequality

UN official issues urgent warning about growing global inequality

JEDDAH: In a world increasingly marked by disparity, a senior UN official has issued a pressing warning: the gap between rich and poor nations must not continue to widen.

Speaking at the conclusion of the Multilateral Industrial Policy Forum in Riyadh on Oct. 24, Gerd Muller, director general of UNIDO, emphasized the critical need for global collaboration to tackle urgent challenges such as hunger, climate change, and economic inequity.

Muller expressed appreciation for Saudi Arabia’s role in organizing the “successful” event, highlighting the enthusiasm and commitment shown by participants. “That is really great. It helps confirm my basic optimism,” he remarked.

He underscored that effective solutions exist to confront today’s challenges, asserting that addressing hunger, fostering decent job creation, and promoting sustainable industrialization are essential for future progress.

“In a globalized world, everything is interconnected, and the crises we face are universal,” Muller noted, stressing that solidarity among nations is vital to bridge the growing divide.

He urged global leaders to prioritize fair and sustainable supply chains, declaring that multilateral cooperation is key to overcoming these issues. The insights gained from this forum will contribute to the Riyadh Declaration, which is slated for adoption at the next general conference in 2025.

In a significant development, Muller and Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef signed an agreement to establish a framework for strategic cooperation aimed at enhancing industrial development in Saudi Arabia. This partnership will focus on crafting effective industrial policies, improving data analysis, and boosting investments in key sectors.

The agreement also emphasizes the adoption of advanced technologies and sustainable practices to integrate local industries into global value chains.

Alkhorayef highlighted the collaborative spirit of the conference, stating, “We have spent a couple of days discussing serious issues with a focus on solutions.”

He appreciated the expertise shared during ministerial roundtables, which tackled crucial topics such as sustainable development goals and the impact of industrial policies on economic advancement.

He pointed out the significance of exploring how digitalization, including AI and automation, can transform industries and supply chains.

Addressing supply chain resilience, Alkhorayef called for cooperation to mitigate disruptions while seizing opportunities for economic growth. He extended an invitation to participants for the upcoming UNIDO General Conference in Riyadh, which will further build on the discussions held at the forum and contribute to the declaration.


IMF says size of Egypt’s loan program is still appropriate

IMF says size of Egypt’s loan program is still appropriate
Updated 24 October 2024
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IMF says size of Egypt’s loan program is still appropriate

IMF says size of Egypt’s loan program is still appropriate

WASHINGTON: The International Monetary Fund stated on Thursday that Egypt’s $8 billion loan program remains “still appropriate” and highlighted the urgent need to evaluate the effectiveness of the country’s social protection initiatives.

During a recent address, Egyptian President Abdel Fattah El-Sisi warned that the nation might need to reconsider its expanded loan program if international institutions fail to acknowledge the extraordinary regional challenges Egypt is facing.

The support package, signed in March, mandates Egypt to cut subsidies on fuel, electricity, and other commodities while allowing its currency to float freely—steps that have ignited public discontent.

In a briefing, Jihad Azour, IMF Director for the Middle East and Central Asia, emphasized the need for collaboration with Egyptian authorities to enhance the reach and sufficiency of social protection programs. “This will be a priority issue for discussion with the managing director,” he noted.

Azour underscored the importance of maintaining currency exchange rate flexibility, a key condition of the loan agreement.

IMF Managing Director Kristalina Georgieva announced plans to visit Egypt in about 10 days to assess the country’s challenging economic landscape firsthand and reinforce the necessity of adhering to reform commitments.

She pointed out that Egypt continues to face repercussions from conflicts in Gaza, Lebanon, and Sudan, resulting in a 70 percent decline in Suez Canal revenues.

“We are open to adjusting the Egyptian program or any other program to best serve the people,” Georgieva said. “However, we cannot fulfill our responsibilities if we ignore necessary actions.”

BRICS payments system

Georgieva also commented on a proposed alternative cross-border payments system from the BRICS nations, indicating she requires more details to assess its potential impact but dismissed any immediate threat to the IMF.

Leaders from Brazil, Russia, India, China, and other BRICS nations recently pledged to enhance cooperation on cross-border payments, grain exchanges, and additional initiatives during a summit in Russia.

“The concept of a payment system among a group of countries is not new,” Georgieva stated. “What we need now is more specifics on how this idea may come to fruition before we can evaluate its implications. While various member states form different alliances, all members continue to support the IMF.”


Saudi Arabia, Tunisia to strengthen industrial cooperation through joint ventures: vice minister

Saudi Arabia’s Vice Minister of Industry Affairs Khalil bin Salamah. AN Photo
Saudi Arabia’s Vice Minister of Industry Affairs Khalil bin Salamah. AN Photo
Updated 24 October 2024
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Saudi Arabia, Tunisia to strengthen industrial cooperation through joint ventures: vice minister

Saudi Arabia’s Vice Minister of Industry Affairs Khalil bin Salamah. AN Photo
  • Kingdom is in talks with two neighboring Arab countries to integrate policies that could boost industries
  • Saudi vice minister of industry affairs highlighted a broader vision of industrial collaboration, such as in the auto industry

RIYADH: Saudi Arabia is set to strengthen regional industrial ties by partnering with Tunisia on a series of joint ventures, according to a top official.

Speaking to Arab News on the sidelines of the UN Multilateral Industrial Policy Forum in Riyadh, the Kingdom’s Vice Minister of Industry Affairs, Khalil bin Salamah, confirmed upcoming collaboration with Tunisia, saying it’s now a matter of selecting which products to begin with and how to proceed.

“It’s out of the question that, whether there will be or not, there will be because no one will succeed alone. Sustainable success and growth only come with collaboration,” said Bin Salamah.

He continued: “We understood that. We have seen it in the petrochemical, and we will see it in other multiple sectors.”

The vice minister said that Saudi Arabia is in talks with two neighboring Arab countries to integrate policies that could boost industries such as pharmaceuticals.

He emphasized the importance of establishing common policies among Arab nations as a foundation for regional collaboration in various industrial sectors. 

Rather than focusing solely on producing specific products, the countries aim to align their industrial policies first, creating a unified platform that can later be applied to different goods. 

“There are many, so each group of countries will focus on different products, but with the same policy platform. We want to capture those common policies before it translates to products and keep them at that level between the countries,” Bin Salamah said.

He added: “When we talk about API (active pharmaceutical ingredients), one country is Egypt (and a) potential country could be Jordan, because the maturity of manufacturing of medicine does exist. But now we have to utilize the chemicals, especially the fine chemicals into API, and that goes to serve all of our country’s demand for the medicine.”

The vice minister also highlighted a broader vision of industrial collaboration, such as in the auto industry, where countries, including the UAE, Morocco, Tunisia, and Egypt, are already contributing various components and capabilities.

“We have already multiple countries of interest. When we go to component-wise, there is already in the UAE. In Morocco, there is very good industrialization. In Tunisia, in Egypt, there is a good integration, no repetition but value addition,” Bin Salamah said.

Regarding Tunisia, the vice minister underlined that the collaboration would not be limited to the auto industry, a key sector of focus, but would extend to other divisions with high potential, including the phosphate and power generation sectors.

He shed light on the human capital aspect of the collaboration, underscoring the potential for shared expertise and workforce development between the two countries.

Bin Salamah said Saudi Arabia’s industrial strategy is transitioning from basic and intermediate chemicals to downstream sectors, including fine chemicals and API. 

The move is seen as crucial for expanding the Kingdom’s industrial base and supporting its Vision 2030 objectives.

“When I look at Tunisia, from even previous experiences, there is the phosphate industry, there is the power generation,” the vice minister said. 

The conversation also touched upon a broader Arab industrial integration, a key topic during a recent meeting in Morocco. Bin Salamah said that this cooperation would take shape not only in Tunisia but also in other Arab nations. 

His remarks underscore Saudi Arabia’s commitment to regional cooperation as part of its broader industrial strategy. 

Reaffirming this collaboration, Tunisian Minister of Industry, Mines and Energy Fatma Thabet Chiboub said that her country has a distinctive type of mining resource that could be open to investment from the Saudi side.

“This is part of the discussions we have had. I believe the automotive components sector could be one of the promising sectors for investment, and the pharmaceutical industry could also be a fruitful area for cooperation between both sides,” she told Arab News.

Chiboub added: “Tunisia has significant advantages in the health care sector, both in services and manufacturing. Tunisia boasts important competitive advantages and skilled professionals, many of whom have been working in Saudi Arabia for around 50 years.”

She said that despite the resources available in the Kingdom, the current level of investment in Tunisia does not reflect the full potential of the relationship between the two countries. 

“We believe there is room to significantly enhance this cooperation to serve the interests of both nations,” she said.

She added: “As Arab countries, our goal should be deeper integration and collaboration, which is the primary objective of this forum — to strengthen cooperation and foster greater unity between Arab nations.”

In terms of promising sectors, Tunisia is open to foreign investment across all industries, focusing on food, metal, textiles, clothing, automotive and aerospace components, and pharmaceuticals.

“We continue to support the presence of foreign and national investments. We consider foreign investment to be equivalent to domestic investment under Tunisian investment law, offering the same preferential advantages to foreign investors as we do to Tunisian investors,” Chiboub said.

“Tunisia has had relations with Saudi industries, and the goal is to further develop these networks. Tunisia is currently open in the energy transition sector, and I believe that the Saudi side has made remarkable progress in the field of alternative energy,” she also said.


Closing Bell: Saudi main index slips to close at 11,886

Closing Bell: Saudi main index slips to close at 11,886
Updated 24 October 2024
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Closing Bell: Saudi main index slips to close at 11,886

Closing Bell: Saudi main index slips to close at 11,886
  • Parallel market Nomu gained 438.38 points, or 1.66%, to close at 26,818.29
  • MSCI Tadawul Index lost 0.45 points, or 0.03%, to close at 1,494.90

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 15.71 points, or 0.13 percent, to close at 11,886.06. 

The total trading turnover of the benchmark index was SR4.37 billion ($1.16 billion), as 59 of the stocks advanced and 161 retreated. 

The Kingdom’s parallel market Nomu gained 438.38 points, or 1.66 percent, to close at 26,818.29. This comes as 33 of the listed stocks advanced, while 38 retreated. 

The MSCI Tadawul Index lost 0.45 points, or 0.03 percent, to close at 1,494.90. 

The best-performing stock of the day was Rasan Information Technology Co., whose share price surged 10 percent to SR68.20. 

Other top gainers were Arabian Mills for Food Products Co. and Al Taiseer Group Talco Industrial Co., whose share prices surged 2.95 percent and 2.38 percent to SR59.30 and SR56.00, respectively. 

The worst performer was Al-Baha Investment and Development Co. for Industry., whose share price dropped by 6.67 percent to SR0.28. 

Other notable underperformers included Umm Al-Qura Cement Co. and Fawaz Abdulaziz Alhokair Co., with share prices falling 3.78 percent to SR16.30 and 3.31 percent to SR12.86, respectively. 

On the announcements front, Rasan Information Technology Co. released its interim financial results for the period ending Sept. 30. 

According to a statement from Tadawul, the firm recorded a net profit of SR54.93 million in the first nine months of the year, reflecting a 52.6 percent increase compared to the same period in 2023. 

The growth is primarily attributed to a 32.5 percent rise in gross profit year on year, with a profit margin of 60.2 percent compared to 58.7 percent during the same period last year, driven by enhanced operational efficiency and reduced sales costs. 

The increase is linked to a 47.5 percent growth in operating profits compared to the previous year, along with a 40.6 percent rise in earnings before interest, taxes, depreciation, and amortization, achieving a margin of 28.2 percent versus 25.9 percent during the first nine months of 2023. 

Yanbu Cement Co. released its interim condensed consolidated financial results for the period ending Sept. 30. A bourse filing revealed that the firm recorded a net profit of SR129.17 million in the first nine months of the year, reflecting a 26.8 percent increase compared to the same period in 2023. 

The growth is primarily attributed to rising local sales revenues and other income, despite higher administrative, selling, financing, and Zakat expenses. 

In market activity, Yanbu Cement Co. closed the session at SR23.00, down 0.78 percent. 

The Capital Market Authority announced its approval of SAB INVEST’s request to offer units of the “SAB Invest Hang Seng Hong Kong ETF” on the Saudi Stock Exchange as an Exchange Traded Fund. 


Saudi Arabia drives GCC shift toward clean energy, industrial growth: UNIDO

Saudi Arabia drives GCC shift toward clean energy, industrial growth: UNIDO
Updated 24 October 2024
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Saudi Arabia drives GCC shift toward clean energy, industrial growth: UNIDO

Saudi Arabia drives GCC shift toward clean energy, industrial growth: UNIDO
  • Kingdom has taken bold steps to leverage its renewable energy resources, notably in green hydrogen production
  • Saudi Arabia’s leadership is part of a larger movement within the GCC countries to promote sustainable industrialization

RIYADH: Saudi Arabia is emerging as a leader in sustainable industrialization, spearheading regional efforts to transform the Middle East’s industrial landscape, a forum in Riyadh heard. 

At the 2024 UN Industrial Development Organization Multilateral Industrial Policy Forum, experts highlighted the Kingdom’s leadership in clean energy and industrial growth, driven by its Vision 2030 strategy. 

Naif Al-Osaimi, executive vice president of the National Industrial Development and Logistics Program, emphasized Saudi Arabia’s pivotal role in reshaping the regional industrial environment.

“The National Industrial Development and Logistics Program is one of the Vision 2030 plans to diversify and grow the Saudi economy,” Al-Osaimi said. “We aim to transform the Kingdom into a leading industrial powerhouse and a global logistics hub while maximizing the value created by the energy and mining sectors.” 

Naif Al-Osaimi, executive vice president of the National Industrial Development and Logistics Program, speaks at the 2024 UNIDO Multilateral Industrial Policy Forum. Screenshot

In line with these national ambitions, Saudi Arabia has taken bold steps to leverage its renewable energy resources, notably in green hydrogen production. 

According to the “Industrial Development Report 2024” by UNIDO, Saudi Arabia is “leveraging renewables to produce green hydrogen,” a key step in reducing carbon emissions and promoting a low-emission economy. 

These developments are crucial as the Kingdom seeks to become a global leader in clean energy while reducing its dependence on fossil fuels. 

Al-Osaimi said the synergy-driven approach of the NIDLP ensures that each sector within the economy contributes to and benefits from others, creating a cycle of maximized economic value. 

“In NIDLP, we build on the synergies between sectors, we make sure that each sector feeds another sector to create the maximum economic value out of this process,” he added. 

Regionally, Saudi Arabia’s leadership is part of a larger movement within the Gulf Cooperation Council countries to promote sustainable industrialization. 

The report highlighted the efforts of the Gulf Organization for Industrial Consulting, which is coordinating industrial policies across the GCC to foster collaboration and ensure that each nation benefits from collective advancements in technology, energy, and infrastructure. 

Neighboring Bahrain is also making significant strides in sustainable industrial development. Khaled Al-Alawi, assistant undersecretary for industrial development in Bahrain, shared insights into the country’s strategy during the same panel at MIPF. 

“The industrial sector strategy spans from the years 2022 to 2026 to shape policies and build partnerships to build a robust and vibrant manufacturing sector in the Kingdom of Bahrain,” Al-Alawi said. 

He added that the main key performance indicators of this strategy are “to increase the sector’s contribution to the overall GDP (gross domestic product), increase national origin exports, and create value and quality job opportunities for Bahrainis.” 

Saudi Arabia’s industrial policy also focuses on renewable energy, digital transformation, and logistics — three pillars of its strategy to reduce dependency on oil.

As Al-Osaimi said the Kingdom is actively fostering partnerships between the private sector and government entities to ensure the success of its industrial ambitions. 

Khaled Al-Alawi, Bahrain’s assistant undersecretary for industrial development, speaks at the 2024 UNIDO Multilateral Industrial Policy Forum. Screenshot

Saudi Arabia’s vision is already shaping the region’s future. With Bahrain and other GCC nations following suit, the Middle East is transforming into a hub for sustainable, technologically advanced industries. 

The UNIDO report highlighted that Saudi Arabia’s commitment to Industry 4.0 technologies and renewable energy is driving this regional transformation, ensuring that the Gulf remains competitive in an evolving global economy. 

The Kingdom is also leading the region in green energy initiatives, particularly in leveraging renewable energy to produce green hydrogen, a key focus in reducing carbon emissions.