COP16: A turning point for global land restoration and drought resilience  

This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 
This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 
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Updated 02 December 2024
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COP16: A turning point for global land restoration and drought resilience  

COP16: A turning point for global land restoration and drought resilience  

RIYADH: The 16th session of the Conference of the Parties to the UN Convention to Combat Desertification is set to be a pivotal moment in the global fight against desertification and land degradation. 

Scheduled for Dec. 2-13, 2024, in Riyadh, COP16 carries the theme “Our Land. Our Future.”  

This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 

Why COP16 matters 

As one of the three Rio Conventions, alongside climate change and biodiversity, UNCCD plays a critical role in global environmental governance. COP16 aims to catalyze unprecedented ambition and investment to restore degraded lands and enhance drought resilience. 

The conference will focus on several key objectives:  

Scaling up land restoration: Accelerating efforts to restore 1.5 billion hectares of degraded land by 2030. 

Strengthening drought resilience: Enhancing global and national policy frameworks to better withstand and manage droughts. 

Promoting people-centered solutions: Ensuring the participation of local communities, women, and youth in land management and restoration efforts.  

“The COP16 plans to combat land degradation present exciting opportunities,” said Vijay Valecha, chief investment officer of Century Financial, in an interview with Arab News. 

“Land restoration will promote job growth, encourage sustainable development, and support local economies. According to the UNCCD, every dollar invested in restoring degraded lands yields between $7 and $30 in economic returns,” he added.  

Valecha underscored the importance of collaboration in achieving these ambitious goals, stating: “The target to reforest 1.5 billion hectares will require close collaboration among experts, universities, NGOs, government organizations, and the private sector. This collaboration will strengthen knowledge transfer to local communities and grassroots organizations, making development more sustainable in the long term.”  

HIGHLIGHTS

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation.

‘Missed calls from the land’  

As COP16 in Riyadh approaches, the presidency announced the launch of the global campaign, “Missed calls from the land.”  

This initiative, supported by a campaign film, highlighted Saudi Arabia’s commitment as the UNCCD COP16 Presidency to raise global awareness about the urgent issues of land degradation, drought, and desertification.  

Currently, 40 percent of the world’s land is degraded, affecting 3.2 billion people. The UNCCD’s target aims to restore 1.5 billion hectares of degraded land by 2030.  

Valecha elaborated on how land restoration will have far-reaching impacts: “Restoration also improves water retention in the soil, enhances agricultural output, stimulates the livestock economy, and increases water availability for human consumption.”  

He added: “These efforts will create more green jobs, making economies more resilient in the face of climate challenges.”  

Ministerial dialogues  

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

“COP16 in Riyadh is a critical moment for the international community to address land degradation, drought and desertification,” said Osama Faqeeha, deputy minister for environment and adviser to the UNCCD COP16 Presidency.  

In a press release, he added: “From food and water insecurity to climate change, conflict, instability, and forced migration, how we treat our land has a profound impact on lives and livelihoods around the world.” 

“In short, we need international solutions. Earlier this year, we achieved a significant milestone with the adoption of a historic resolution by the UN Environmental Assembly to halt land degradation,” Faqeeha added, speaking to Arab News.

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.

Faqeeha highlighted Saudi Arabia’s initiatives: “We are determined to lead by example in land restoration and drought resilience, ultimately, showcasing how successful initiatives can create a thriving circular economy.”

He added: “Through the Saudi Green Initiative, we have already planted more than 100 million trees and rehabilitated more than 100,000 hectares of degraded land. This is part of our commitment to restore 40 million hectares through tree planting and other nature-based solutions.”

Faqeeha noted that “the Middle East Green Initiative further demonstrates our regional leadership in restoring 200 million hectares of degraded land across the region.”

“At the same time, we are engaging policymakers from around the world in a range of high-profile discussions to deliver decisive multilateral action. This dual-pronged approach is vital to accelerating the land restoration and drought resilience initiatives our planet and its people so desperately need,” said Faqeeha.

FAO’s central role  

The Food and Agriculture Organization will play a key role at COP16, reflecting its commitment to sustainable land management and food security. Abdul Hakim Elwaer, FAO’s assistant director-general, emphasized in remarks to Asharq Al-Awsat the organization’s active participation, including leading discussions on transforming food systems and coordinating thematic days like Food Day and Governance Day.  

Valecha tied land restoration directly to food security, emphasizing: “Land restoration is crucial for ensuring we have enough food for the future. Sustainable methods like agroecology and regenerative agriculture can improve soil health, reduce carbon emissions, and boost productivity, creating robust food supply chains that adapt to climate change.”  

Strengthening drought resilience  

Building resilience to drought will be a key focus of COP16, emphasizing the role of policies and technologies, with Valecha advocating for proactive measures. 

“To improve drought resilience, a comprehensive framework is needed. This includes identifying vulnerable areas, implementing early warning systems, and enacting policies to prevent water overuse,” he said.  

“Measures such as promoting drought-resistant crops and establishing drought management funds will provide essential protection for affected communities,” Valecha added. 

The integration of local and indigenous knowledge into these efforts is equally vital.   

Valecha said: “Indigenous communities, as key stakeholders in land restoration, possess deep understanding of their ecosystems. Their involvement can significantly reduce deforestation rates, as seen in countries like Nepal and regions in the Americas.”  

A regional and global impact  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation. COP16 will provide an opportunity for regional countries to showcase their resilience strategies and contribute to shaping global policies.  

“The Gulf and MENA region, owing to its demographics, have been at the center of environmental challenges,” said Valecha. “However, initiatives such as drought and disease-resistant crop varieties by GCC nations demonstrate the region’s commitment to combating these challenges.”  

Moreover, COP16 will offer a platform to showcase innovative solutions, from advanced land management practices to cutting-edge technologies in water conservation.  

Youth and community engagement  

For the first time, COP16 will see Saudi Arabia host a Green Zone alongside the formal Blue Zone program. This inclusive public space will promote environmental awareness through family-friendly and cultural activities. 

The emphasis on inclusivity is central to COP16, with forums and training sessions for youth, women, and indigenous communities. The Green Zone will host discussions on sustainable land stewardship while featuring workshops, exhibitions, and interactive art installations.  

Valecha highlighted the potential of youth engagement at COP16: “Selected youth negotiators will participate in the Youth Negotiators Academy, equipping them with skills to advocate for actionable policies. These efforts promote intergenerational dialogue and foster solutions for sustainable livelihoods.”  

“Globally, women account for nearly 50 percent of agricultural labor in small-scale farming. Gender-inclusive policies across the value chain are critical to the success of restoration initiatives,” said Valecha. 

Innovative solutions and partnerships  

COP16 is expected to unveil groundbreaking initiatives, with Valecha anticipating significant developments. He added: “The conference could lead to the establishment of financing mechanisms and restoration funds. Cross-border partnerships can help maintain the Land Degradation Neutrality target and prevent further degradation of land resources.” 

Valecha emphasized the critical role of the private sector in achieving COP16’s goals, highlighting the potential contributions of international financial institutions and private companies. He pointed to favorable loans, green bonds, and funding for sustainable practices such as no-till farming and rotational grazing as key areas of support.  

He also stressed that public-private partnerships are vital for scaling up land restoration efforts. 

A call to action  

As COP16 commences, the world stands at a crossroads. This conference is not just a meeting but a call to action — a chance to turn ambition into tangible solutions for land, livelihoods, and the planet’s future. 


Emirates airline to resume flights to Beirut

Emirates airline to resume flights to Beirut
Updated 14 sec ago
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Emirates airline to resume flights to Beirut

Emirates airline to resume flights to Beirut

DUBAI: Emirates airline will resume flights to Beirut on Feb. 1 after a four-month suspension triggered by conflict between Israel and Hezbollah, a statement said on Friday.

The Middle East’s biggest airline will first offer a daily return flight and scale up to two services per day from April 1, the statement said.

Emirates will also resume a daily flight to the Iraqi capital, Baghdad, from Feb.1, it added.

The Dubai-based, state-owned carrier was one of several regional airlines to suspend Beirut services in late September as tensions soared between Israel and Iran-backed Hezbollah.

A truce came into effect on November 27, ending over a year of hostilities.
 


Saudi Arabia champions youth as it drives talent development to fuel Vision 2030

Saudi Arabia champions youth as it drives talent development to fuel Vision 2030
Updated 24 January 2025
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Saudi Arabia champions youth as it drives talent development to fuel Vision 2030

Saudi Arabia champions youth as it drives talent development to fuel Vision 2030
  • Kingdom is encouraging entrepreneurship 
  • 76 percent of young Saudis view the government as a positive change-driver

RIYADH: As Saudi Arabia redefines its economy and aspirations under Vision 2030, the Kingdom is placing a tremendous focus on its most valuable asset — its youth.

Through a dynamic blend of public-private partnerships, targeted training, and groundbreaking programs, Saudi Arabia is setting the stage for a new generation of skilled professionals who will not only fuel growth but also transform the economic landscape.

Figures from the General Authority for Statistics released in 2023 show that 63 percent of the Kingdom’s population is under 30 years old, and the government and private sector are working hand-in-hand to shape the coming era.

“Digital literacy is essential, as technological advancements require the younger generation to not only be proficient in the latest advancements but also drive innovation in areas like AI and data analytics,” Riyadh Al-Najjar, PwC Middle East chairman and Saudi Arabia country senior partner, told Arab News

He added: “An entrepreneurial mindset is equally important, as the success of Vision 2030 relies on growing the private sector. Young people need to be able to spot opportunities, think critically, and solve problems that add value to the economy.”

On a similar perspective, Zehar Filemban, executive director in talent development at Red Sea Global, noted the essential skills Saudi Arabia is focusing on to prepare its youth for roles in an evolving economy.

In emerging fields like technology, tourism, and renewable energy, digital literacy is crucial, enabling young Saudis to work with advanced technologies, while problem-solving equips them to tackle complex challenges and project management ensures efficient handling of tasks and responsibilities.

“By nurturing these skills, we aim to empower the next generation to contribute effectively to the Kingdom’s evolving economy,” Filemban told Arab News.

Alongside these technical skills, critical thinking, adaptability, and leadership are equally important.

Critical thinking allows young professionals to approach problems analytically, adaptability helps them respond effectively to rapid changes, and leadership empowers them to drive projects and inspire teams.

By cultivating both technical and soft skills, Saudi Arabia aims to equip the next generation to lead in a competitive job market, fostering innovation and supporting the country’s ambitious economic transformation under Vision 2030.

 “An entrepreneurial mindset is equally important, as the success of Vision 2030 relies on growing the private sector,” Al-Najjar said, underscoring that the future workforce must not only navigate established pathways but also create their own.

Robust youth engagement

PwC's Middle East Youth Outlook 2024 report underscores the importance of local talent development for the Kingdom’s future, indicating that a large portion of Saudi youth are highly motivated to contribute to the nation's progress.

The report reveals that 76 percent of young Saudis view the government as a positive change-driver, reflecting trust in the Vision 2030 agenda and a desire to align with national goals.

It also emphasizes that Saudi youth are keenly interested in career pathways that not only offer upward mobility but also provide opportunities to build skills in fields critical to the Kingdom’s sustainable future, like technology, healthcare, renewable energy, and tourism.

Filling the skills gap via private-public partnerships

Private companies in Saudi Arabia are working alongside government initiatives to improve youth employment and skill development.

"We actively partner with various ministries and educational institutions to offer tailored training programs that address industry-specific needs,” Filemban said.

He continued: “These collaborations, such as the RSG Elite Graduate Program, RSG Scholarship Program, Red Sea Vocational Training Program, and partnerships with local educational institutions, ensure that Saudi youth gain practical, hands-on experience while building a strong foundation for their careers, ultimately aligning with the goals of Vision 2030 and beyond.”

The alignment of private companies with government initiatives has been essential to the Kingdom’s approach, creating job readiness programs that meet the demands of the local labor market.

PwC, along with other private-sector giants like Aramco, NEOM, and Red Sea Global, are deeply committed to skill development and Saudization, reducing dependency on expatriate labor by equipping local talent with the expertise necessary to fill high-demand roles.

The firm’s Hemam program provides Saudi youth with training in consulting and technology, coupled with mentorship to bridge the gap between education and employment.

“It is also important for the private sector and educational institutions to continue working closely together, as it plays a pivotal role in preparing young Saudis for their careers,” Al-Najjar said.

He added: “Universities and academic institutions are increasingly working alongside businesses to ensure that curricula and training programmes are aligned with the specific needs of in demand sectors.”

Al-Najjar went on to say: “This alignment ensures that graduates possess the needed skills and are well-equipped to transition from education to employment seamlessly.”

Riyadh Al-Najjar, PwC Middle East chairman and Saudi Arabia country senior partner. Supplied

Encouraging entrepreneurship 

Saudi Arabia’s burgeoning entrepreneurial ecosystem is also playing a significant role in economic diversification.

The government, along with private-sector incubators such as The Garage and Flat6Labs, offers young business minds vital resources, including funding, mentorship, and technical support.

According to Al-Najjar, the private-sector incubators across the Kingdom play a significant role by providing entrepreneurs with access to technical expertise, strategic advice, and an extensive network of investors.

This guidance is helping young Saudis transform innovative concepts into viable businesses, fostering a generation of self-starters who contribute to job creation and economic growth.

Programs like these underscore the rise in entrepreneurial interest among Saudi youth, who are increasingly drawn to fields such as technology, renewable energy, and gaming.

Building a sustainable workforce: Saudization and beyond

Saudi Arabia’s shift towards a sustainable, homegrown workforce involves not only training but also the transfer of knowledge from foreign experts to Saudi nationals.

Companies are focused on workforce localization and training, with entities like Red Sea Global launching initiatives to empower Saudi talent to take on roles in fields such as tourism and renewable energy.

Filemban described RSG’s Global Leader Program as a targeted leadership initiative aimed at building capacity within Saudi nationals.

“This approach creates a sustainable workforce and also fosters a culture of ownership and innovation, empowering Saudis to take on roles across key sectors. We are also investing in a range of leadership initiatives, including the RSG Global Leader Program,” he said.

Filemban added: “Young Saudis are showing particular interest in sectors like tourism, technology, and renewable energy, areas that align closely with the goals of Vision 2030.”

He further explained that by connecting them with industry experts and providing resources, they enable them to transform their innovative concepts into sustainable businesses that contribute to the Kingdom’s economic growth.

Looking ahead to what’s next

When asked about further steps that Saudi Arabia should take to retain and attract talent in fields crucial to Vision 2030, Filemban noted that the Kingdom must continue to develop a robust talent ecosystem that not only attracts skilled professionals but also retains them in essential fields

“This can be achieved by expanding partnerships with global educational institutions, investing in lifelong learning programs, and enhancing incentives for skill development,” he said.

Filemban continued: “At Red Sea Global, we are committed to developing comprehensive career pathways, creating opportunities for continuous professional growth, and fostering an environment where top talent is valued and nurtured.”

On his side, Al-Najjar emphasized the importance of Saudi Arabia taking active steps to attract and retain talent in fields critical to the country’s future, even beyond Vision 2030.

“A key priority will be creating flexible, purpose-driven workplaces that connect back to the demand of today’s workforce. As highlighted in our Hopes and Fears Survey, 57 percent of workers value work-life balance and job security,” he said.

Al-Najjar continued: “This makes it essential for businesses to expand initiatives such as remote working policies, wellness programmes, and inclusive environments.

He added that this involves expanding public-private partnerships for advanced training, enhancing the appeal of fields like cybersecurity, artificial intelligence, and clean energy, and offering incentives and career growth opportunities for young professionals.

“By focusing on these areas, Saudi will have created a dynamic ecosystem that not only attracts global professionals but also nurtures and retains local talent who will drive the Kingdom’s economic transformation,” Al-Najjar said.

The Middle East Youth Outlook 2024 report recommends that Saudi Arabia continue to invest in scholarships, internships, and public-private collaborations to attract young professionals to emerging industries.

In doing so, the Kingdom is not only positioning itself as a talent hub but also fostering an environment where local youth can thrive and innovate.

Overcoming the challenges

Despite these extensive efforts, challenges remain. As Filemban pointed out: “One of the core challenges is bridging the gap between the skills young Saudis acquire in educational institutions and the rapidly evolving needs of the job market.”

The rapid pace of technological advancement, combined with the evolving demands of industries like AI and data analytics, requires continuous upskilling.

Initiatives such as Vision 2030’s Human Capability Development Program aim to address this by aligning education with industry requirements, preparing youth for careers in key sectors through practical skills and soft skills training.

In response, companies like Red Sea Global and PwC are working closely with universities and vocational training centers to develop curricula and training programs that meet industry standards.

This alignment between academia and industry is crucial to ensuring that young Saudis are equipped with relevant, market-driven skills, enabling them to transition smoothly into the workforce.


Oil Updates — prices poised for weekly fall on Trump’s energy policies

Oil Updates — prices poised for weekly fall on Trump’s energy policies
Updated 24 January 2025
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Oil Updates — prices poised for weekly fall on Trump’s energy policies

Oil Updates — prices poised for weekly fall on Trump’s energy policies

LONDON: Oil prices were little changed on Friday but headed for a weekly decline after US President Donald Trump issued a sweeping plan to boost US production and demanded OPEC lower crude prices.

Brent crude futures were down 9 cents at $78.20 a barrel by 7:45 a.m. Saudi time on Friday, while US West Texas Intermediate crude dipped 9 cents to $74.53.

For the week, Brent was down 3.18 percent so far, while WTI shed 4.28 percent.

“Crude prices have been easing all through this week, as investors trimmed war premiums after the Gaza ceasefire while bracing for Trump’s energy policy change,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

“For now, Trump is being unpredictable as predicted, setting oil prices up for headlines-oriented volatility ahead,” Sachdeva added.

Trump, during his speech on Thursday at the World Economic Forum in Davos, Switzerland, said he would demand that the Organization of the Petroleum Exporting Countries bring down the cost of crude barrels.

He also said he would ask Saudi Arabia to increase a US investment package to $1 trillion, up from $600 billion reported by the Kingdom’s state news agency earlier in the day.

Trump had declared a national energy emergency on Monday, rolling back environmental restrictions on energy infrastructure as part of a sweeping plan to maximize domestic oil and gas production.

On Wednesday, he vowed to hit the EU with tariffs and impose 25 percent tariffs against Canada and Mexico, and said his administration was considering a 10 percent punitive duty on China.

As attention shifts to a possible February timeline for new tariffs set by Trump, caution will likely persist in the market as any new trade restrictions will carry negative implications for global growth, potentially weighing on oil demand prospects, said Yeap Jun Rong, market strategist at IG.

Traders expect oil prices to range between $76.50 and $78 a barrel, Yeap added.

While bullish catalysts like a significant drawdown in US crude stocks are providing temporary positive swings, an overall oversupplied global market and ailing projections of Chinese demand continue to weigh on crude futures, Phillip Nova’s Sachdeva said.

US crude inventories last week hit their lowest level since March 2022, according to the US Energy Information Administration.

The EIA report, issued a day late because of a US holiday on Monday, said crude stockpiles fell by 1 million barrels to 411.7 million barrels in the week to Jan. 17, marking a ninth consecutive weekly decline.


Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears
Updated 24 January 2025
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Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears

Saudi Arabia, UAE poised to become trade ‘super-connector hubs,’ WEF panel hears
  • Agility’s Henadi Al-Saleh highlights that innovation, investment help countries to capitalize on disruption in global trade

LONDON: Saudi Arabia is on track to emerge as a “super-connector hub,” leveraging ongoing global trade disruption to its advantage, according to experts speaking at the World Economic Forum in Davos on Thursday.

Henadi Al-Saleh, chair of the board of directors at Agility, a global leader in supply chain services, highlighted the Gulf Cooperation Council’s significant investments in infrastructure as a driving force behind this transformation.

She said: “(In) the past few years, the level of activity, especially around cargo, has increased several fold.

“If I look at the GCC, where we have invested in warehouses, and at the Emirates in Saudi Arabia, one of our key platforms, (they are) set to become super-connector hubs.

“These countries are investing in infrastructure, doubling down, and the level of activity is increasing.”

Al-Saleh identified digitalization as a key value in this development, saying that “in a time with so much uncertainty, having that clarity and understanding, even when changes take place, it gives me visibility. (With the digital tools) I know what the rules (are) and (how) I need to adjust.”

She added: “That’s one critical aspect in which you see these super hubs benefiting.”

While the level of trade has continued to grow since the end of the pandemic, socioeconomic and political factors have continued to disrupt industry.

Experts have said that US President Donald Trump’s second term is expected to exacerbate the disruption, with the president supporting potential trade tariffs on multiple exporting nations.

Chile’s Minister of Foreign Affairs Alberto van Klaveren acknowledged the challenges but also pointed to opportunities arising from these shifts.

He said: “There are possibilities. Some economies are opening up. We signed the CEPA Agreement (Comprehensive Economic Partnership Agreement) with the Emirates. We are interested in Saudi Arabia.”

He explained that the importance of diversification was not only in export markets but also in the types of goods and services traded.

However, experts cautioned that ongoing trade disruption could significantly impact the global energy transition, particularly in the green energy sector.

Al-Saleh said: “There are certain segments of people, businesses and technologies (in the green energy market) that are paying a price.

“But this is where, I think, from the private sector, it’s incumbent upon them to continue. This is irrespective of what happens today in terms of tariffs. There is a long view, and we need to all manage towards that long view.”

According to World Trade Organization data, every nation relies on imports and exports for at least 25 percent of its goods. Given this interdependence, Al-Saleh argued, trade will remain indispensable despite ongoing disruption.

She said: “You need to focus on being agile and resilient. Those are critical elements, and the way to become agile and resilient is really to diversify and invest in technology.”
 


Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister
Updated 24 January 2025
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Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister

Saudi Arabia taking bold steps to test smart technologies as it embraces AI, says industry minister
  • Kingdom has embarked on a transformation of traditionally industrial cities into modern smart cities, Bandar Alkhorayef tells World Economic Forum
  • Nation’s businesses are increasingly adopting new technologies to help enhance productivity, he adds

DAVOS: Saudi Arabia is becoming a regional hub for testing the use of new technologies as efforts to diversify the national economy continue, the minister of industry and mineral resources, Bandar Alkhorayef, told the World Economic Forum in Davos on Thursday.

The Kingdom has established national organizations such as the Saudi Data and AI Authority and the Future Factories Program to regulate and help businesses adopt new technologies that utilize artificial intelligence, machine learning, 3D printing and robotics, he added.

This smart infrastructure market is projected to be worth $2 trillion within the next 10 years, up from an estimated $900 billion in 2024, driven by growth in the integration of physical and digital industrial operations.

Alkhorayef said Saudi Arabia places a priority on manufacturing and has embraced the use of the latest technologies in sectors such as renewable energy and electric vehicles, as the Kingdom embarks on ambitious plans to transform traditionally industrial cities into modern smart cities.

“The investors coming to these cities (will find) a ‘plug-and-play’ kind of support,” he said, as authorities take steps to attract businesses and global talent to work and invest, and to establish the country as a regional hub for technological research, development and innovation.

The Kingdom’s Future Factories Program, for example, aims to provide training initiatives and loans to help 4,000 factories adopt new technologies, embrace automation and improve manufacturing efficiency.

“We’re very bold when it comes to testing new ideas and technologies,” Alkhorayef added, which makes it “interesting for new players to see (Saudi Arabia) as a place where they can not only seek financing or investment but also a place to test and pilot certain ideas.”

Such endeavors are endorsed by some of the country’s biggest corporations, including the chemical manufacturing company SABIC, the petroleum company Aramco, and the mining giant Maaden. Aramco, for example, has already adopted new technologies, including AI, to enhance productivity and reduce carbon dioxide emissions.

Alkhorayef was speaking during a WEF discussion titled “Next-Gen Industrial Infrastructure.” The other panelists included representatives of the African Union Commission, businesses and consulting firms.

Currently, up to 50 percent of Saudi Arabia’s deep-tech startups are focused on the development of AI or the Internet of Things, Alkhorayef said, as the country increasingly adopts digitalization in the public and private sectors.

The Saudi Data and AI Authority, established in 2019 to regulate and promote the national agenda for a data-driven economy, has said that AI is making significant contributions to operational efficiency. In 2023, global spending on AI exceeded $120 billion, with more than 72 percent of organizations incorporating the technology into at least one business area.

“We believe that adopting technology in the mining sector will lead to safer, more productive and energy-efficient mines,” Alkhorayef said by way of an example, adding that it is essential that authorities consider environmental protection as they seek to strike the right balance between the interests of investors and the local community.

“Making digitalization accessible is an important part of what we do (in the Kingdom),” he said. “It involves regulation, cybersecurity, human capital training, and investing in incubators to work and learn.

“In every sector, such as food, energy or mining, (we always ask) the question of how technology could be helpful.”