Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending

Update  Saudi Crown Prince Mohammed bin Salman chairs the weekly Cabinet session on Tuesday during which he approved the Kingdom’s budget for 2025. SPA
Saudi Crown Prince Mohammed bin Salman chairs the weekly Cabinet session on Tuesday during which he approved the Kingdom’s budget for 2025. SPA
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Updated 26 November 2024
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Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending

Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending

RIYADH: Saudi Arabia on Tuesday approved the state budget for fiscal year 2025 with revenues projected at SR1.18 trillion ($315.73 billion) and expenditure at SR1.28 trillion, leading to a deficit of SR101 billion.

The Finance Ministry forecasted Saudi Arabia’s Real GDP growth at 4.6 percent in 2025, up from the 0.8 percent estimate for 2024. This growth will be driven by a rise in non-oil sector activities, according to the statement.

The figures align with projections from the ministry’s pre-budget statement in September, showing a 4 percent decline in revenues, a 4 percent decline in expenditures, and a 12 percent lower deficit compared to the latest FY 2024 estimates.

The FY2025 forecast are based on a baseline scenario, which represents a middle ground between higher and lower revenue projections, taking into account potential changes in economic activity and global petroleum market conditions.

The ministry projects the deficit to remain at similar levels in the medium term, with SR130 billion in 2026 and SR140 billion in 2027, driven by the government’s strategic expansionary spending policies aimed at fostering economic diversification and sustainable growth. Revenues are expected to rise over the next two years, reaching around SR1.3 trillion by 2027.

The Kingdom’s total debt is projected to reach SR1.3 trillion in 2025, equivalent to 29.9 percent of GDP, reflecting a sustainable level to meet financing needs.

Revised projections for Saudi Arabia’s 2024 budget indicate a deficit of SR115 billion, with total debt expected to reach SR1.2 trillion, or 29.3 percent of GDP.

The fiscal year 2025 budget prioritizes maintaining essential services for citizens and residents, while accelerating spending on key projects and sectors.

It focuses on preserving fiscal stability and achieving long-term sustainability by managing government reserves and maintaining sustainable public debt levels, ensuring the Kingdom’s resilience against unforeseen economic shocks.

In a statement following the weekly Cabinet session, Crown Prince Mohammed bin Salman emphasized the government’s ongoing efforts to strengthen the Kingdom’s economic base. “We will continue to work on expanding the economic base and enhancing the Kingdom’s financial position,” he stated.

He also highlighted the pivotal role of Saudi Arabia’s sovereign wealth funds—the Public Investment Fund and the National Development Fund—in driving economic stability and achieving Vision 2030 objectives. “These funds are essential to diversifying the economy and supporting long-term investments,” he said.

Saudi Arabia’s economy is advancing through strategic reforms and robust investment initiatives under Vision 2030, emphasizing diversification and fiscal sustainability.

Key objectives include increasing the private sector’s contribution to GDP, growing the share of foreign investment, and boosting non-oil exports.

The strategy also prioritizes reducing unemployment and accelerating investment growth by enhancing the business environment, providing innovative financing solutions, and attracting regional headquarters of multinational companies to establish a strong presence in the Kingdom.

Key enablers, including the PIF, are driving private sector growth, launching transformative projects, and fostering new industries.

These efforts, outlined in the 2025 budget statement, aim to boost social and economic outcomes while ensuring resilience against global challenges and long-term prosperity.

Breakdown of projected government revenues and expenditures

The ministry projects tax income at SR379 billion in 2025, making up around 32 percent of total revenues. This represents a 4 percent increase compared to the 2024 estimates. The majority of these levies, accounting for 77 percent, come from taxes on goods and services.

According to the ministry, this growth is driven by sustained improvements in economic activity, the ongoing development of tax administration, and enhanced collection processes, all of which have contributed to a boost in total tax revenues.

In terms of sector-specific expenditures, the military sector received the largest allocation at SR272 billion, marking a 5 percent increase compared to the 2024 estimates.

The health and social development sector followed with a 20.25 percent share amounting to SR260 billion.

General items with 14.95 percent share of 2025 budgeted expenditures will be allocated SR192 billion.

Financing the deficit

The Ministry of Finance, in collaboration with the National Debt Management Center develops an annual borrowing plan aligned with the Kingdom’s medium-term debt strategy, ensuring long-term debt sustainability.

This strategy not only diversifies financing sources, encompassing both domestic and external markets, but also enhances the Kingdom’s standing in global debt markets.

Additionally, the government is expanding its financing channels by tapping into bond and sukuk issuance, loans, and alternative funding models like project and infrastructure financing, as well as collaborating with export credit agencies.

According to the Ministry of Finance, the Kingdom maintains a robust fiscal position, underpinned by substantial financial reserves and manageable public debt levels.

This fiscal strength provides the government with the ability to manage potential economic shocks and meet its financing needs across short, medium, and long-term horizons, while securing favorable borrowing terms from both domestic and international markets.

The crown prince also reaffirmed the government’s commitment to fiscal reforms that have already improved Saudi Arabia’s credit ratings. While the projected deficit for 2025 signals short-term fiscal challenges, the government is focused on ensuring long-term economic sustainability.

He noted that this year’s budget will continue to prioritize economic diversification, with significant emphasis on empowering the private sector and fostering growth in small and medium-sized enterprises.

The crown prince stressed that, despite global economic uncertainties, Saudi Arabia is well-positioned to navigate external challenges and play an increasingly central role in regional and global economic stability.

“Our economy is well-prepared to overcome challenges,” he said.

He also emphasized the importance of long-term financial planning to maintain momentum on Vision 2030 initiatives, underscoring the government's focus on spending efficiency and transparent execution of the budget to meet its strategic goals.

Moody’s upgraded Saudi Arabia’s credit rating to “Aa3” from “A1” on Friday, highlighting the country’s progress in diversifying its economy beyond oil.

The Kingdom is investing heavily in Vision 2030 initiatives, focusing on sectors like tourism, sports, and manufacturing, while also attracting foreign investment.

Despite lower oil prices and reduced production, Saudi Arabia continues to adjust its spending, delaying or scaling back some Vision 2030 projects while prioritizing others.

Moody’s revised the country’s outlook to stable, reflecting uncertainties in global economic conditions and the oil market. In September, S&P also upgraded Saudi Arabia’s outlook to positive due to strong non-oil growth.


Aramco charts future with bold investments in clean energy

Aramco charts future with bold investments in clean energy
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Aramco charts future with bold investments in clean energy

Aramco charts future with bold investments in clean energy

JEDDAH: Saudi Aramco’s investment strategy reflects a pragmatic and forward-looking approach as the global energy landscape continues to evolve, experts have told Arab News.

Having reported a net income of $106.2 billion in 2024, the world’s largest and most valuable energy company remains focused on its long-term growth. 

Central to this are its ambitious natural gas projects, including the Jafurah unconventional gas field and the Tanajib gas plant, which are vital to Saudi Arabia’s future energy security.

These initiatives support the Kingdom’s ongoing transition from crude oil to gas-powered electricity generation and align closely with Vision 2030’s objectives of economic diversification and environmental responsibility.

A pragmatic approach

Saudi Aramco is intensifying its natural gas development, recognizing its role as a cleaner alternative to crude oil. These efforts dovetail with the broader national strategy to reduce emissions while bolstering economic resilience.

Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute, told Arab News that Aramco’s diversification extends to its global liquefied natural gas ventures, such as its stake in MidOcean Energy.

“Natural gas serves as a reliable bridge fuel with lower carbon intensity than crude,” he explained.

Aramco is also harnessing artificial intelligence to boost operational efficiency and reduce emissions, sharpening its competitive edge in an increasingly renewable-driven world.

“This twin strategy — scaling cleaner fuels and deploying smart technologies — ensures Aramco remains globally competitive while contributing to the Kingdom’s climate goals,” Al-Sayed said.

Tamer Al-Sayed, chief financial officer at the Future Investment Initiative Institute. Supplied

Investing in carbon capture 

A cornerstone of Aramco’s decarbonization is a large-scale carbon capture and storage facility under development in Jubail. Expected to capture up to 9 million tonnes of CO2 annually, it will be among the largest of its kind globally.

Al-Sayed acknowledged the issues associated with CCS, saying: “The economics remain challenging without a robust carbon pricing mechanism.”

He emphasized that CCS is a strategic bet to allow Saudi industry to maintain market access amid tightening low-carbon regulations. There is also potential for new revenue streams through “carbon capture-as-a-service.”

“In macroeconomic terms, this is a bet on future-proofing Saudi industry,” he added, highlighting the Kingdom’s readiness to capitalize on emerging carbon markets and green trade policies.

A cleaner future

Aramco’s renewable energy investments focus heavily on solar power and hydrogen. The company is advancing the Sudair Solar PV plant and three additional projects totaling 5.5 gigawatts, aimed at greening the grid and reducing domestic oil consumption — thereby freeing hydrocarbons for export or industrial use.

In the hydrogen sector, Aramco targets producing 2.5 million tonnes of blue ammonia annually by 2030, leveraging its gas reserves and CCS infrastructure to become a leading clean energy exporter.

“This aligns with Vision 2030’s goal of developing high-value, knowledge-based industries,” Al-Sayed said.

While renewables will not replace hydrocarbons overnight, they remain a critical element of Saudi Arabia’s long-term energy diversification.

Expanding downstream 

Aramco’s recent acquisitions in emerging markets underscore a strategic push into downstream operations. Its full ownership of Chile’s Esmax and a 40 percent stake in Pakistan’s Gas & Oil fuel retail network give the Saudi firm direct access to growing energy markets.

“From a Saudi economic lens, such downstream investments help reduce overreliance on crude oil exports by monetizing the full hydrocarbon value chain — from well to wheel,” Al-Sayed explained.

These moves also generate foreign revenue streams, support the Kingdom’s balance of payments, and complement broader trade diplomacy efforts.

With Pakistan’s fuel demand rising alongside its population and infrastructure growth, and Chile serving as a gateway into South America’s energy retail landscape, Aramco is positioning itself for durable growth beyond upstream activities.

“These investments also provide resilience against regional demand fluctuations, reinforcing Aramco’s strategy of maintaining a global presence in energy markets,” Al-Sayed added.

GO CEO Khalid Riaz, sitting left, and Aramco Director of International Retail Nader Douhan, sitting right, after the Saudi firm acquired a 40% equity stake in May 2024. Aramco

Recalibration for the future

In the face of rapid decarbonization, Aramco is recalibrating its long-term strategy through diversification, global investments, and adoption of future-focused technologies. The company aims to balance today’s operational realities with tomorrow’s energy goals.

“This is not just about resilience — it is about relevance,” Al-Sayed concluded, underscoring how strategic diversification and investments anchor Aramco firmly in the energy economy of the future.

Resilience amid cuts

Yaseen Ghulam, associate professor of economics and director of research at Al-Yamamah University in Riyadh, offered perspective on Aramco’s 2024 net income decline — which was 12 percent down from the $121.3 billion seen in 2023.

He attributed it to strategic oil production cuts agreed upon by OPEC+, including a 6.25 percent reduction from 2023 and a 14.28 percent cut from 2022.

“OPEC+ further plans to extend voluntary oil production curbs until September 2026, potentially causing a 0.4 million barrels per day reduction in 2025,” Ghulam said.

Despite these market constraints, he noted that Saudi Arabia’s non-oil sector has compensated for the oil-related revenue drop through higher household consumption and increased investment, driven by government diversification efforts.

He forecast non-hydrocarbon sector growth of at least 4 percent, supported by low unemployment, rising female workforce participation, and ongoing Vision 2030 progress, backed by strong fiscal buffers.

Sustainable investment 

When asked about Aramco’s capital expenditures — $53.3 billion in 2024 and projected up to $58 billion in 2025 — Ghulam emphasized the company’s pivotal role in shaping global oil supply trends.

“Aramco has made a record investment and is likely to continue in artificial intelligence, manufacturing, and corporate acquisitions to improve domestic and global oil supply chains and help diversify the nation’s economy,” he said.

He further highlighted the company’s commitment to developing lower-carbon products across energy, chemical, and materials sectors, alongside its plan to leverage its low-cost, low-carbon upstream production to meet growing global demand.

He also pointed out the company’s investments in renewables through its New Energies division, saying:, “Aramco has signed an agreement to build new green hydrogen and ammonia production facilities. The company wants to produce 11 million tonnes of blue ammonia a year by 2030, with the possibility of exporting to markets in Asia and Europe.”

Supporting diversification plans 

According to its 2024 annual report, Aramco’s technology initiatives aim to enhance upstream and downstream operations, expand its product portfolio, and promote sustainable growth aligned with its net-zero ambitions.

Ghulam observed that Saudi Arabia’s economy is rapidly reducing its reliance on oil revenues, thanks to infrastructure, tourism, and technology policies.

“Non-oil activities now make up 52 percent of overall economic activity, with an anticipated 65 percent by the end of the decade. Non-oil revenue in fact doubled in four years. Industries driving this growth include manufacturing, construction, communication, finance, retail trade, restaurants, hotels, and logistics and transportation,” he said.

The Kingdom is rolling out over 5,000 projects aimed at diversification, with 73 percent of new investment expected to target non-oil sectors.

Ghulam concluded that Aramco plays a critical role in supporting this transition by investing heavily in LNG, hydrogen, solar, wind, and battery materials like lithium, alongside maintaining upstream oil projects to sustain its global leadership.


Startup Wrap — Saudi capital driving SME growth amid rising AI and tech demand

Startup Wrap — Saudi capital driving SME growth amid rising AI and tech demand
Updated 16 May 2025
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Startup Wrap — Saudi capital driving SME growth amid rising AI and tech demand

Startup Wrap — Saudi capital driving SME growth amid rising AI and tech demand

RIYADH: Startups across the Middle East and North Africa continued to attract significant investment in the past week, with Saudi Arabia emerging as the driving force behind many of the region’s most prominent funding rounds and initiatives. 

Backed by government-led strategies and private capital, the Kingdom is reinforcing its position as a regional hub for innovation and artificial intelligence-driven technologies. 

Saudi Arabia-based Wyld VC has launched a $50 million early-stage venture capital fund focused exclusively on AI, becoming the first AI-native VC firm in the MENA region. 

The fund is founded and led by Tala Hasan Al-Jabri and is designed to support AI founders building middleware and application-layer innovations, targeting sectors with the highest potential for industrial transformation. 

“The GCC is leading the charge in catalyzing an AI revolution— through massive infrastructure investments, advanced research and model deployment, and transparent, innovation-forward regulation,” said Al-Jabri, adding: “However, the region’s greatest gap is AI talent. Wyld VC is here to fill that gap.” 

Wyld VC is backed by the family office of Lawrence E. Golub, marking its first investment in the Middle East. 

“Tala is a highly accomplished, talented investor, with a track record of success investing in innovative, early-stage technology companies,” said Golub. 

“Her considerable investment acumen, combined with her unparalleled and comprehensive ties and network in the Gulf and the US, offer a unique investment opportunity. I am excited to be supporting Tala and Wyld on this compelling new venture,” Golub added. 

WakeCap raises $28m to expand contech platform 

Hassan Al-Balawi, co-founder of WakeCap. Supplied

WakeCap, a Saudi construction technology company, secured $28 million in funding during the Saudi-US Investment Forum. 

The company will use the capital to enhance its construction site safety solutions, expand its presence in Saudi Arabia, and pursue international markets. 

Founded in 2017 by Hassan Al-Balawi and Ishita Sood, WakeCap provides wearable technology that enables contractors and project managers to monitor site operations in real-time. 

Its platform offers digital insights to improve safety, efficiency, and decision-making on large-scale construction projects. 

“WakeCap’s ability to capture and act on real-time jobsite data is critical for high-performing project controls,” said Al-Balawi. 

“This round fuels our next stage of growth as we expand our global footprint, increasing the value we deliver to customers through richer insights, faster reporting, and greater operational efficiency,” he added. 

Kilow secures $2.5m to scale AI-powered weight management 

Fahed Al-Essa, founder of Kilow. Supplied

Saudi health tech startup Kilow has raised $2.5 million in seed funding to develop its personalized, AI-powered weight management platform. 

The round was led by Sanabil Venture Studio, in partnership with innovation services firm Stryber. 

Founded in 2024 by Fahed Al-Essa, Kilow provides users with personalized treatment plans, medical consultations, and real-time health tracking. 

The platform also integrates with smart health devices and offers at-home lab testing, enabling a comprehensive digital health experience. 

The funds will be used to expand Kilow’s product capabilities and reach more users across Saudi Arabia as it aims to tackle the growing health and wellness market with AI-driven solutions. 

Saudi Arabia launches Humain to spearhead AI development 

Saudi Arabia has launched Humain, a state-backed AI company established under the Public Investment Fund. 

Chaired by Crown Prince Mohammed bin Salman, Humain will serve as the central national entity responsible for AI development and investments, aligning with the Kingdom’s Vision 2030 agenda. 

With a focus on infrastructure and model development, the company will offer next-generation data centers, advanced AI infrastructure, and cloud computing capabilities. 

A key initiative will be the development of a multimodal Arabic large language model tailored to regional needs. 

The launch was strategically timed to coincide with the visit of US President Donald Trump to Riyadh, reflecting the broader geopolitical importance of AI collaboration between Saudi Arabia and the US. 

Google backs STV’s new AI fund for MENA startups 

Saudi-based venture capital firm STV has launched a new AI-focused fund with backing from Google, aimed at supporting early-stage startups in the MENA region. 

The fund will invest in companies developing application-layer AI products, localized large language models, and supporting infrastructure. 

The initiative seeks to address the region’s underrepresentation in AI funding. In 2024, only 1.5 percent of total VC investment in MENA was directed toward AI startups, compared to 38 percent in the US and 13 percent in India. 

The partnership brings together STV’s regional market insight with Google’s AI research and product expertise to support the development of locally relevant and globally competitive technologies. 

Nawy raises $75m to scale proptech and mortgage offering 

The Nawy team. Supplied

Egyptian property tech company Nawy has raised a total of $75 million in its latest funding rounds, comprising a $52 million series A equity round and $23 million in debt financing. 

The equity round was led by Partech, with participation from e& Capital, March Capital, and VKAV, as well as DPI via Nclude, VentureSouq, and Shorooq. 

Debt funding was provided by leading Egyptian banks to support the expansion of Nawy Now, the company’s mortgage platform. 

Founded in 2019 by Mohamed Abou Ghanima, Abdel-Azim Osman, Ahmed Rafea, Aly Rafea, and Mostafa El-Beltagy, Nawy offers a full-stack real estate ecosystem including financing, fractional ownership, asset management, and business to business brokerage enablement. 

Nawy claims to have achieved $1.4 billion in gross merchandise value in 2024 and reports a 50 time increase in US dollar-denominated revenue. 

The company previously raised $5 million in seed funding in 2022 from the Sawiris family office. 

AqlanX raises $10m for Arabic-first enterprise AI 

UAE-based AI company AqlanX has raised $10 million in funding from Lakeba Group through its subsidiary DoxAI. 

The investment was made under the UAE’s NextGen FDI initiative, which aims to attract high-tech foreign investment to the country. 

Founded in 2025 by Demetrio Russo, AqlanX builds enterprise-grade AI solutions for automating business processes, improving operational efficiency, and transforming document management. 

The company focuses on building Arabic-first AI technologies to serve local enterprises. 

The funding will be used to localize and scale DoxAI’s automation products across the Middle East, as the company expands its footprint within the region’s growing AI ecosystem.

TensorWave raises $100m to expand AMD-based AI clusters 

AI infrastructure startup TensorWave has raised $100 million in a funding round led by Magnetar and AMD Ventures, bringing its total raised to $146.7 million. 

Other participants include Maverick Silicon, Nexus Venture Partners, and Prosperity7 Ventures, the investment arm of Saudi Aramco. 

Founded in 2023 by Darrick Horton, Jeff Tatarchuk, and Piotr Tomasik, TensorWave offers AMD GPU-based cloud services optimized for AI training. 

The company has already launched a large-scale training cluster featuring 8,192 AMD Instinct MI325X GPUs. 

The new capital will be used to scale TensorWave’s GPU infrastructure, grow its workforce to over 100 employees, and accelerate revenue growth. 

The company projects it will exceed $100 million in run-rate revenue by the end of 2025. 

Arkestro secures $36m to enhance AI procurement technology 

Arkestro, a predictive procurement platform, has closed a $36 million strategic funding round led by Altira Group and Aramco Ventures, with participation from NEA, KDT, and Activant. 

The platform uses AI, behavioral science, and game theory to drive cost savings and improve procurement efficiency. 

The company claims its platform generates an average of 18.8 percent in savings per $1 million of enterprise spend. 

The funding will support the company’s global expansion and the continued development of its AI capabilities to reduce supply chain risk and enhance collaboration between procurement teams and suppliers. 


Oil Updates — crude set for 2nd weekly rise on trade war truce

Oil Updates — crude set for 2nd weekly rise on trade war truce
Updated 16 May 2025
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Oil Updates — crude set for 2nd weekly rise on trade war truce

Oil Updates — crude set for 2nd weekly rise on trade war truce

BEIJING/SINGAPORE: Oil prices held steady on Friday, heading for a second consecutive weekly gain due to easing US-China trade tensions though a potential return of Iranian supply limited price gains.

Brent crude futures dipped 1 cent to $64.52 a barrel by 6:26 a.m. Saudi time. US West Texas Intermediate crude futures added 2 cents to $61.64.

Both contracts fell more than 2 percent in the previous session following a selloff due to the rising prospect of an Iranian nuclear deal.

President Donald Trump said the US was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.

ING analysts wrote in a note that a nuclear deal lifting sanctions would ease supply risk, allowing Iran to increase oil output and find more willing buyers for its oil. That could result in additional supply of around 400,000 barrels per day, they said.

Despite the potential supply pressure, both Brent and WTI were up 1 percent so far this week, after a surge earlier in the week. Sentiment got a boost after the US and China, the world’s two biggest oil consumers and economies, agreed to a 90-day pause on their trade war during which both sides would sharply lower trade duties.

The hefty reciprocal Sino-US tariffs had raised fears of a sharp blow to global growth and oil demand.

Analysts at BMI, a unit of Fitch Solutions, maintained their forecasts for Brent to average $68 per barrel in 2025 and $71 per barrel in 2026, down from 2024’s $80 per barrel, citing the uncertainty of trade policy on the price outlook.

“While the 90-day cooling off period leaves the door open for additional progress on lowering trade barriers on both sides, the uncertainty on longer-term trade policy will limit price upside,” the analysts said in a research report.

Adding to market concerns was an expected surplus.

The International Energy Agency on Thursday hiked its 2025 global supply growth forecast by 380,000 bpd, as Saudi Arabia and other OPEC+ members unwind output cuts.

The IEA also projected a surplus for next year, despite a minor upward revision of its 2025 global oil demand forecast by 20,000 bpd.

Investors were also watching for signs of interest rate cuts by the Federal Reserve, which could bolster the economy and oil demand.

Earlier this week, data from the US Energy Information Administration showed a bigger-than-expected jump in crude stockpiles, heightening demand concerns in the world’s biggest oil consumer.


Closing Bell: Saudi main index slips to close at 11,485 

Closing Bell: Saudi main index slips to close at 11,485 
Updated 15 May 2025
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Closing Bell: Saudi main index slips to close at 11,485 

Closing Bell: Saudi main index slips to close at 11,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 46.95 points, or 0.41 percent, to close at 11,485.05. 

The total trading turnover of the benchmark index was SR5.28 billion ($1.40 billion), as 61 of the stocks advanced and 179 retreated.  

Similarly, the Kingdom’s parallel market Nomu lost 46.12 points, or 0.17 percent, to close at 27,841.06. This comes as 32 of the listed stocks advanced while 43 retreated.  

The MSCI Tadawul Index lost 4.40 points, or 0.30 percent, to close at 1,462.76.   

The best-performing stock of the day was Miahona Co., whose share price surged 10 percent to SR24.86.  

Other top performers included National Gypsum Co., whose share price rose 4.90 percent to SR21 as well as Saudi Manpower Solutions Co., whose share price surged 3.09 percent to SR7.01. 

Zamil Industrial Investment Co. recorded the most significant drop, falling 10 percent to SR43.20. 

Arabian Contracting Services Co. also saw its stock prices fall 8.21 percent to SR125.20, while Retal Urban Development Co. also saw its share value decline 6.98 percent to SR15.72. 

On the announcements front, Saudi Awwal Bank has completed the offering of its USD-denominated Additional Tier 1 Green Sukuk, valued at $650 million. According to a statement on Tadawul, the total number of sukuk issued stands at 3,250, based on a minimum denomination and total issue size at a par value of $200,000 each. The sukuk offers a return of 6.50 percent and features perpetual maturity. 

Saudi Awwal Bank ended the session at SR34.40, up 1.31 percent. 

Bank Albilad has announced the commencement of its offering for a USD-denominated Additional Tier 1 Capital Sukuk. According to a bourse filing, the final amount and terms of the sukuk will be determined at a later stage, subject to prevailing market conditions. The offering period runs from May 15 to May 16. 

The minimum subscription is set at $200,000, with additional increments of $1,000, based on a par value of $200,000. The bank has appointed HSBC Bank plc, Albilad Capital, Goldman Sachs International, and Emirates NBD Bank PJSC as joint lead managers for the issuance. 

Bank Albilad ended the session at SR27.10, up 0.19 percent. 

Emaar, The Economic City has announced its interim financial results for the first three months of 2025. According to a Tadawul statement, the company reported a net loss of SR123 million in the period ending March 31, down 65 percent compared to the corresponding quarter a year earlier. 

This decrease in net loss is primarily attributed to an increase in revenues, a decrease in operational expenses, and reversal of ECL provision following a reassessment compared to the recorded provision in the corresponding quarter. 

Emaar, The Economic City ended the session at SR13.50, down 1.02 percent. 

Zamil Industrial Investment Co. reported a net profit of SR21.8 million for the first quarter of 2025, marking a 301 percent increase compared to the same period last year, according to a bourse filing.

The sharp rise in earnings was driven by higher sales across all business segments, along with increased operating income in the air conditioning, construction, and insulation divisions. The company also benefited from improved contributions from associates and joint ventures, as well as reduced financial charges. 


Saudi Arabia forges ahead in AI and tech through US partnerships

Saudi Arabia forges ahead in AI and tech through US partnerships
Updated 15 May 2025
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Saudi Arabia forges ahead in AI and tech through US partnerships

Saudi Arabia forges ahead in AI and tech through US partnerships

JEDDAH: Saudi Arabia is advancing its artificial intelligence, cybersecurity, and cloud computing capabilities through agreements signed with leading US tech firms during an investment forum in Riyadh.

Among the deals signed during the event, six agreements were inked by entities from the Kingdom with US companies, reflecting the deepening strategic and technological cooperation between the two countries.

The forum commenced on May 13 at the King Abdulaziz International Conference Center in the Saudi capital, with the participation of high-ranking officials from both countries. 

It coincided with the visit of US President Donald Trump, during which the Kingdom announced the signing of agreements with the North American country valued at over $300 billion.

These agreements mark a significant step forward in Saudi Arabia’s push to build a diversified, knowledge-based economy through strategic international partnerships, according to the Saudi News Agency.

The Saudi Data and Artificial Intelligence Authority, known as SDAIA, inked four memorandums of understanding with US technology firms PureStorage, DataDirect Network, Wika.io, and Palo Alto Networks during the event.

The agreements aim to enhance the Kingdom’s data and AI infrastructure, drive innovation in emerging technologies, and strengthen cooperation in cybersecurity and technical fields, SPA reported

In a separate move, the Saudi Digital Government Authority signed an MoU with the leading US multinational technology company Oracle to expand collaboration in cloud computing, AI, and digital services.

“The partnership is expected to strengthen the Kingdom’s leadership in cloud computing and digital transformation, enhance digital awareness among government employees and the wider community, and improve the efficiency of government services provided to citizens and residents,” the authority said in a statement.

The release added that the deal represents a model of constructive collaboration and an extension of national efforts aimed at promoting digital innovation, supporting the economy, and achieving institutional excellence through the development of the digital government ecosystem.

The signing ceremony took place at the authority’s headquarters in Riyadh and was attended by Ahmed Al-Suwaiyan, governor of DGA, and Cormac Watters, executive vice president and general manager at Oracle EMEA applications.

The agreement was signed by DGA Vice Gov. Abdullah Al-Faifi and Oracle Country Leader Reham Al-Musa.

The National Center for Privatization signed a memorandum of cooperation with the Association for the Improvement of American Infrastructure to strengthen professional competencies in privatization and public-private partnerships.

Signed on the sidelines of the forum, the agreement “reflects the NCP’s efforts to expand collaboration with the US private sector and develop training programs for Saudi professionals,” SPA report noted.

Under the deal, NCP and AIAI will work together on joint events, expert exchanges, and specialized sessions aimed at promoting institutional knowledge and global best practices in the Kingdom’s privatization ecosystem.