2024 marks Saudi Arabia’s bold leap toward technological leadership

2024 marks Saudi Arabia’s bold leap toward technological leadership
Saudi Arabia is poised to continue shaping the future of technology, creating growth opportunities, and enhancing the quality of life for its citizens. Shutterstock
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2024 marks Saudi Arabia’s bold leap toward technological leadership

2024 marks Saudi Arabia’s bold leap toward technological leadership
  • Kingdom launched ALLaM, a generative AI model tailored specifically for the Arabic language
  • Technology also played a critical role during the Hajj season

RIYADH: Saudi Arabia’s digital transformation journey reached new heights in 2024, solidifying its position as a global leader in technology and innovation. 

Guided by Vision 2030, the Kingdom continued to reshape its economic and social landscapes through extensive digital initiatives spanning government, the private sector, and international partnerships. From advancements in artificial intelligence to significant strides in the digital economy, Saudi Arabia’s achievements over the past year set the stage for even bolder ambitions in 2025.

Revolutionary achievements

One of the standout accomplishments of 2024 was the consolidation of government data. The creation of a centralized data lake integrated 27 large systems with over 322 systems in the National Data Bank. This initiative not only enhanced the quality of national data but also automated data-sharing processes, fostering collaboration across entities and delivering substantial cost savings.

Saudi Arabia also launched ALLaM, a generative AI model tailored specifically for the Arabic language. Integrated into IBM’s Watsonx platform, ALLaM was recognized as the leading generative AI model for Arabic, as measured by the Arabic MMLU benchmark. This innovation underscored the Kingdom’s commitment to preserving its cultural and linguistic heritage while advancing global AI standards.

“Saudi Arabia’s digital transformation initiatives, driven by Vision 2030, have created a strong foundation for the Kingdom to emerge as a global leader in technology and innovation,” said Louise Bou Rached, sales director for the Middle East, North Africa, and Turkiye region at Milestone Systems, in an interview with Arab News. 




Louise Bou Rached, Sales Director, MENAT at Milestone Systems. Supplied

She continued: “The strategic focus on AI, IoT (Internet of Things), 5G, and cloud infrastructure is enabling the development of smart cities, digital governance, and innovative industries.”

Bou Rached highlighted initiatives like NEOM and The Line, which combine cutting-edge technology with sustainability to redefine urban living and attract global attention. “This transformation is enhancing the Kingdom’s international reputation and driving economic diversification, positioning Saudi Arabia as a model for other nations aspiring to achieve technological leadership,” she said.

A key element in this transformation has been the integration of advanced video management systems across smart city projects, improving security, efficiency, and data-driven decision making. “VMS technology ensures the seamless operation of urban environments and aligns with the Kingdom’s broader vision of fostering a secure and intelligent ecosystem,” Bou Rached added.

Technology also played a critical role during the Hajj season, with advanced AI solutions ensuring the safety and well-being of millions of pilgrims. Smart platforms like Basier and Sawaher deployed over 400 AI-linked cameras across key locations, including tunnels and the Jamarat facility. These systems provided real-time crowd density analysis, enabling authorities to address emergencies efficiently. This initiative marked a significant leap in combining AI with large-scale event management.

“Projects involving smart cities, artificial intelligence, and renewable energy are shaping new industries and lifestyles in Saudi Arabia,” said Arun Leslie John, the chief market analyst at Century Financial, in an interview with Arab News. Smart cities like NEOM, he noted, are redefining urban living with intelligent systems that optimize resource management, sustainability, and citizen engagement.

“AI is reshaping industries, from health care to logistics, by enabling predictive analytics, automating processes, and improving efficiency,” he added. John also pointed out that the implementation of Open RAN technology is “seriously changing the scene of the country’s telecommunications sector, offering flexible and cost-efficient network infrastructure, essential for extending 5G and upcoming 6G networks.” 

“Companies specializing in such technologies can take advantage of the emergent demand for improved telecommunication solutions,” John said.




Arun Leslie John, Chief Market Analyst at Century Financial. Supplied

AI discussions

Saudi Arabia reinforced its position as a global AI leader by hosting the third Global AI Summit, which brought together world leaders, researchers, and industry experts to discuss ethics, developments, and the future of AI. The event emphasized the Kingdom’s commitment to becoming a hub for AI innovation.

The country also launched the Open Access National Gateway, providing scientists and researchers access to more than 1,000 advanced laboratories. This initiative bolstered Saudi Arabia’s ability to attract top talent, foster innovation, and drive scientific breakthroughs across various fields. 

The establishment of the National Semiconductor Hub marked a significant milestone in the Kingdom’s drive for technological independence. Launched in partnership with top institutions like King Abdullah University of Science and Technology, the hub supports multiple initiatives, including a joint master’s program with the University of California and Princess Nourah University. Over 850 professionals were trained to localize semiconductor technology, further cementing Saudi Arabia’s place in the global tech landscape.

“Saudi Arabia’s investment in space exploration is about exploring the cosmos and leveraging satellite technology to advance telecommunications, agriculture, and disaster management. These advancements are driving diversification away from oil dependency, creating a high-tech economy that attracts global investments and cultivates homegrown innovation,” Bou Rached noted.

Saudi Arabia’s digital transformation efforts received global recognition in 2024. The Kingdom achieved several milestones such as securing the second place among G20 countries in the ICT Development Index and sixth place globally in the UN E-Government Development Index, climbing 25 positions.

These achievements underscored Saudi Arabia’s progress in delivering efficient, accessible, and citizen-centric digital services.

In the space sector, Saudi Arabia celebrated the graduation of 15 startups from the Space Tech Entrepreneurship Program, which offered financial support, training, and mentorship. This initiative attracted both domestic and international investments, highlighting the Kingdom’s growing influence in the space industry.

The Kingdom also secured over SR41 billion ($10.9 billion) in foreign and domestic investments in technology and data centers in 2024. These investments were complemented by enhancements to digital infrastructure, including efforts to localize emerging technologies and establish a thriving innovation ecosystem.

Notable initiatives included the Cloud First Policy, which prioritized cloud-based solutions across government entities and the expansion of 5G networks, positioning Saudi Arabia among the top 10 countries globally for mobile Internet speeds.

In March, the Kingdom unveiled an updated Digital Transformation Index, designed to elevate public sector adherence to technological advancements. The revised standards, reduced from 125 to 96, aimed to improve the quality of e-government services in line with Vision 2030. More than 233 entities participated in workshops to refine methodologies, contributing to an 85.53 percent overall progress rate in digital transformation.

‘Into New Worlds’

Scheduled for February 2025 in Riyadh, LEAP – the Kingdom’s premier tech-focused conference and exhibition – will bring together 1,000 expert speakers, 680 startups, and over 215,000 global attendees. Under the theme “Into New Worlds,” the event will explore cutting-edge technologies and their practical applications. The 2024 edition of LEAP surpassed previous ones, with agreements worth more than $12 billion being signed.

Greater achievements on the horizon

Saudi Arabia’s roadmap for 2025 builds on the transformative momentum of 2024, with ambitious plans designed to further elevate the Kingdom’s global standing in technology and innovation. In AI and data advancements, efforts will focus on increasing the number of datasets in the National Data Bank to improve accessibility and foster greater collaboration.

The adoption of AI across government entities will be further strengthened to stimulate innovation and improve service delivery. Expanding the scope of the National Smart Cities Platform will be a key priority, with an emphasis on security, safety, and sustainability, while introducing new use cases to enhance quality of life and environmental conservation.

In space exploration, Saudi Arabia plans to manufacture and launch a satellite dedicated to investigating space weather as part of the Artemis 2 mission to the moon. Economically, the Kingdom aims to bolster the ICT sector’s contribution to its gross domestic product by introducing two additional multibillion-dollar companies, bringing the total number of such companies to eight.

As 2025 unfolds, Saudi Arabia is poised to continue shaping the future of technology, creating growth opportunities, and enhancing the quality of life for its citizens. By building on its 2024 achievements, the Kingdom is well-positioned to realize its Vision 2030 goals and establish itself as a global leader in the digital era.


Egypt to accelerate government IPO steps to attract investments, maximize private sector role

Egypt to accelerate government IPO steps to attract investments, maximize private sector role
Updated 53 sec ago
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Egypt to accelerate government IPO steps to attract investments, maximize private sector role

Egypt to accelerate government IPO steps to attract investments, maximize private sector role
  • The latest developments in the status of a number of companies currently being processed for sale were reviewed
  • Initiative is part of a broader effort to expand the number of publicly traded companies and attract greater investment

RIYADH: Egypt aims to accelerate the government offerings program procedures in 2025 to maximize the private sector’s economic role and attract more investments.

The announcement was made during a meeting of the Government Offerings Committee, chaired by Prime Minister Mostafa Madbouly, to follow up on the developments of the status of the offering of the four targeted companies affiliated with the Armed Forces, according to a statement by the Cabinet.

This aligns with Egypt’s plan to list over 10 companies in 2025 through public offerings or partnerships with strategic investors. The initiative is part of a broader effort to expand the number of publicly traded companies and attract greater investment.

The firms include National Co. for Petroleum Products Marketing and Distribution, Watanya, National Co. for Natural Water in Siwa, Safi, ChillOut Egypt, and Silo Foods for Food Industries.

The move confirms the country’s seriousness in completing this vital program within the framework of implementing the “State Ownership Policy” document, which primarily seeks to elevate the role of the private sector in various economic activities and raise its contribution, in addition to restructuring some state-owned assets.

This comes amid the difficulties the Egyptian economy has been witnessing with soaring inflation and lower-than-expected revenues, including a significant drop in earnings from the Suez Canal.

During the meeting, Madbouly said the offerings provide opportunities for companies affiliated with the public business sector, whether for public offering on the Egyptian Stock Exchange or for strategic investors, pointing simultaneously to the need to expand the companies offered by the ministry.

The latest developments in the status of a number of companies currently being processed for sale were reviewed, including Sidi Kerir Petrochemicals Co., MIDOR Middle East Oil Refinery, Al-Amal Al-Sharif Plastics, and Egyptian Group For Pharmaceutical Industries.

The steps taken to offer the Gabal El-Zeit wind power plant located in the area south of Ras Gharib were also examined during the meeting, as well as the status of several firms being studied with the Ministry of Public Business Sector as was the offering of stakes in several banks.

Mohamed El-Homsany, the official spokesman for the Cabinet, said the meeting discussed the current status of the government offerings program by reviewing the procedures and executive steps taken by the ministries and relevant authorities to offer the previously announced targeted companies, in addition to those being prepared for offering in several sectors.

Earlier this month, Madbouly announced that Egypt successfully repaid $38.7 billion in debts during 2024, including $7 billion in November and December, demonstrating its commitment to meeting financial obligations despite significant economic challenges. 

As the North African nation continues to tackle its economic difficulties, the country is set to receive around $1.2 billion from the International Monetary Fund under a staff-level agreement for the Extended Fund Facility program. The deal, pending approval from the IMF’s executive board, aims to provide crucial financial support to stabilize Egypt’s economy.


Saudi Fund for Development expands global support in final quarter of 2024

Saudi Fund for Development expands global support in final quarter of 2024
Updated 41 min 44 sec ago
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Saudi Fund for Development expands global support in final quarter of 2024

Saudi Fund for Development expands global support in final quarter of 2024

RIYADH: Economies worldwide have faced significant challenges in 2024, marked by escalating geopolitical tensions and the ongoing conflicts in the Middle East. 

Despite these difficult circumstances, the Saudi Fund for Development remained steadfast in its mission to support developing nations through financing vital social and infrastructure projects.

In the first nine months of 2024, the SFD supported various initiatives, including a $101 million investment for the Shounter and Jagran-IV Hydropower Projects in Pakistan, a $55 million loan to bolster Turkiye’s education sector, and a $5 million grant to fund a water project in Benin.

As the official development arm of Saudi Arabia, the SFD has financed more than 800 projects across over 100 countries, contributing a total of $20 billion since its inception in 1974. Now, in its 50th year, the SFD continues to build on its legacy, making significant strides during the final quarter of 2024. Here are some of the highlights from its activities in the last three months of the year.

Loans to Serbia

In October, the SFD marked its entry into Serbia by signing three development loan agreements valued at $205 million. The loans are aimed at supporting key sectors, including agriculture, education, and energy. This partnership is seen as a significant step in Serbia’s socio-economic development.

During the signing ceremony, Sinisa Mali, the deputy prime minister and minister of finance of Serbia, expressed his gratitude for the support and highlighted the importance of the projects in creating jobs and strengthening the country’s economy. “We are grateful for the support. The projects for which this money is intended will contribute to the creation of new jobs, the strengthening of our economy, and better positioning of the Republic of Serbia in the world scientific community,” said Mali.

He also emphasized the importance of the partnership: “The agreements will also reinforce the long-term partnership between the Republic of Serbia and the Kingdom of Saudi Arabia and contribute to the implementation and development of important projects in our country.”

Sultan Al-Marshad, CEO of SFD, commented on the significance of the partnership, stating that it aligns with the fund’s mission to support sustainable development through strategic investments in infrastructure and education.

Partners with the World Bank Group

In another significant move in October, SFD signed a memorandum of understanding with the World Bank Group to deepen international cooperation in advancing sustainable development in emerging economies. The partnership focuses on joint efforts in knowledge-sharing, co-financing, and tackling critical challenges like water and food security, particularly in regions vulnerable to climate change and fragility.

The agreement includes all five institutions within the World Bank Group: the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment Guarantee Agency, and the International Center for Settlement of Investment Disputes.

Key areas of focus outlined in the MoU include promoting renewable energy, enhancing transportation infrastructure, developing digital economies, and strengthening institutional capacity.

Cooperation with the Global Water Organization

In October, the Saudi fund also signed an MoU with the Global Water Organization. This collaboration aims to support water-related projects worldwide, with the goal of achieving sustainable development goals in various countries.

“This memorandum reflects SFD’s efforts over the past 50 years in enhancing international cooperation in the field of water resource management and water security. This partnership will enhance the provision of innovative financing options to support water projects,” said Al-Marshad at the time.

Deal with AIIB

In the same month, the SFD further extended its reach by signing an MoU with the Asian Infrastructure Investment Bank. The agreement seeks to foster sustainable, resilient, and inclusive development in AIIB member countries, with a particular focus on mobilizing resources through joint initiatives, knowledge sharing, and coordinated communication.

The MoU builds on a $10 million contribution by the SFD to AIIB’s Special Fund Window for Less Developed Members in 2023.

“As a key player in global development, SFD is dedicated to supporting least developed countries and advancing sustainable growth. We strongly believe that partnerships are essential for fostering long-term, impactful development,” said Al-Marshad.

He added: “Working closely with AIIB is a natural fit, given our aligned mission of promoting sustainability and resilience. With the Kingdom of Saudi Arabia’s recent contributions to AIIB’s Special Fund Window, this MoU marks an important milestone in our joint efforts to expand collaboration and drive meaningful change in developing countries.”

AIIB President Jin Liqun highlighted the significance of the agreement, noting that it would unlock new synergies and enhance institutional capabilities to drive resilient, inclusive growth in regions most in need.

“Building on SFD’s support to our Special Funds Window, and our joint effort to explore co-financing project opportunities, the collaboration with SFD will unlock new synergies and bolster our institutional capabilities, driving resilient and inclusive growth, where it is most critically needed,” said Liqun.

Healthcare in Djibouti

In November, the SFD signed an MoU with Djibouti to bolster the East African nation’s healthcare sector. The agreement involves the rehabilitation of the Sultan bin Abdulaziz Dialysis Center at Peltier General Hospital and the construction of a new dialysis center in the Balbala district of Djibouti City, with a total value of SR1.6 million ($426,000).

“This large-scale health project is expected to significantly expand Djibouti’s medical services, reinforcing SFD’s commitment to advancing healthcare infrastructure in Djibouti,” said the fund in a statement.

Djibouti’s Minister of Economy and Finance, Ilyas Moussa Dawaleh, welcomed a delegation from the Saudi Development Fund. SFD

Meetings

In the final quarter of the year, SFD participated in the Multilateral Industrial Policy Forum, organized by Saudi Arabia’s Ministry of Industry and Mineral Resources in partnership with the UN Industrial Development Organization. At the event, SFD showcased its developmental journey since its founding in 1974.

Al-Marshad met with several world leaders to discuss ongoing development projects. In November, Kyrgyzstan President Sadyr Japarov met with SFD CEO during the Extraordinary Arab and Islamic Summit in Riyadh to review development projects in the Central Asian nation. Likewise, in October, Vietnam’s Prime Minister Pham Minh Chinh met with Al-Marshad to discuss future support for pivotal sectors in Vietnam, which has been benefiting from SFD’s initiatives since 2011.

Through loans exceeding $164 million, the SFD has financed 12 development projects in Vietnam across sectors like transportation, communications, and social infrastructure, all contributing to the country’s economic growth and sustainable development.


Startups of the Year: eyewa and Lean Technologies attract top US investors to Mideast

Startups of the Year: eyewa and Lean Technologies attract top US investors to Mideast
Updated 31 December 2024
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Startups of the Year: eyewa and Lean Technologies attract top US investors to Mideast

Startups of the Year: eyewa and Lean Technologies attract top US investors to Mideast

RIYADH: Saudi startups eyewa and Lean Technologies have set a new benchmark in attracting international investment and driving innovation across the Middle East in 2024. 

Operating in the retail and fintech sectors, respectively, these companies have secured significant funding rounds and reached major milestones, cementing their roles as pivotal players in the region’s entrepreneurial ecosystem.  

The future of eyewear  

Dual-headquartered in the UAE and Saudi Arabia, eyewa had a landmark year in 2024. The company surpassed 150 stores across the Middle East and secured its largest funding round to date — $100 million — led by General Atlantic, a leading global growth investor based in the US.  

In an interview with Arab News, co-founder and co-CEO of eyewa Anass Boumediene emphasized the importance of these milestones, saying: “Investment from such a major international growth equity firm clearly highlights the strength of our business model.”  

He added that eyewa’s rapid expansion is part of a broader strategy to reach 250 stores by the end of 2025.  

Customer feedback has been central to eyewa’s success, helping the company navigate challenges in its competitive market. “Our first step in mitigating challenges has always been to listen to what we are being told by our customers,” Boumediene said. 

Drawing from this feedback, the company invested in advanced technological solutions to improve the customer experience. Notable innovations include AI-assisted eye exams for more accurate prescriptions and augmented reality features that allow customers to try on glasses virtually via eyewa’s website and app. 

Boumediene added: “These innovations have allowed us to bridge the gap between in-store and online experiences, making eyewear shopping more accessible and convenient.”  

The founders of eyewa, with Anass Boumediene on the right. Supplied

Eyewa’s Gulf-centric approach to product design and pricing sets it apart from global competitors. “We design our glasses specifically for people in the region, whereas our global competitors tend to follow the US or European trends,” Boumediene said.  

Affordability is another key driver of eyewa’s success, with prescription glasses starting at $100 — half the average price in the GCC. 

“Our designs and pricing are a major factor in the success of eyewa. People in the region really feel like they can connect with the brand at a variety of price points,” he explained.  

Building a diverse and strong team has been integral to eyewa’s growth. The company now employs over 1,300 people from more than 50 nationalities, achieving gender parity, with just over 50 percent of its workforce being female. 

Boumediene highlighted eyewa’s approach to talent development, saying that optometrists have clear career paths, whether technical or managerial. “Our retail director, who leads our retail operations, is an optometrist,” he added, underscoring the company’s commitment to internal growth.  

Looking ahead to 2025, eyewa plans to open an additional 100 stores and establish a production and fulfillment hub in Riyadh. Boumediene described the hub as a game-changer: “It will allow us to deliver bespoke products to customers within 24 hours, the fastest service in the region.” 

He further noted that the Middle East’s young population and rapidly growing economies will continue to fuel demand for eyewear, positioning eyewa to capitalize on these trends.  

Powering fintech  

Lean Technologies, one of the Middle East’s leading fintech infrastructure startups, marked 2024 as a year of milestones, growth, and impact. 

Hisham Al-Falih, CEO of Lean Technologies, told Arab News: “This year, two milestones stand out. The first, and perhaps the most visible, is our Series B funding round of $67.5 million, led by General Catalyst with participation from Bain Capital Ventures, Stanley Druckenmiller, Arbor Ventures, and other top-tier investors.”  

Al-Falih emphasized that the funding round was not just significant for the capital raised, but also for the caliber of investors backing Lean. “It’s a reflection of the potential they see in the region,” he said, calling it a standout moment for the fintech industry.  

Hisham Al-Falih, CEO of Lean Technologies. Supplied

Al-Falih also shared the significance of seeing team members celebrate their five-year anniversaries. “For a company just over five years old, this is deeply meaningful. It highlights the enduring commitment of the people who helped shape Lean from the beginning and continue to drive its mission forward.”  

Operating at the intersection of banks, third-party providers, regulators, and millions of end-users, Lean Technologies faces unique challenges in balancing innovation, compliance, and reliability. “This year was particularly challenging as both Saudi Arabia and the UAE accelerated their Open Banking and Open Finance initiatives,” Al-Falih explained.  

In this regulatory landscape, Lean played a key role in helping shape the frameworks while maintaining its commitment to clients and end-users. “It’s been a demanding but rewarding process—one that underscores our responsibility not just as a company, but as a critical enabler for the entire ecosystem,” he added.  

Lean’s customer-centric approach has been a defining factor in its success. “What sets Lean apart is our relentless focus on solving the most critical challenges faced by our clients and their end users,” Al-Falih noted.

By embedding itself within clients’ businesses, Lean ensures it understands their needs. “This proximity gives us the clarity to address current challenges while also anticipating future opportunities,” he said.  

In the UAE, Lean’s account-to-account payment solutions processed over $2 billion in transaction volumes in 2024, streamlining pay-ins and payouts for major companies like e&, DAMAC, and Careem. 

In Saudi Arabia, the company’s data solutions, operating under the Saudi Central Bank’s regulatory sandbox, have been leveraged by companies such as Tawuniya, ALJUF, and Salla, as well as Tabby and Tamara to unlock new use cases in insurance, lending, and marketplaces.  

Al-Falih reflected on Lean’s growth, saying: “Surpassing our ambitious growth targets wasn’t just about numbers. It was about demonstrating what’s possible when a team is deeply aligned with the needs of its market and its clients.”  

This alignment is rooted in Lean’s culture, which Al-Falih described as “the pursuit of greatness.” He explained: “This mindset drives our culture, and we’ve worked hard to create an environment where people can collaborate with exceptional colleagues, achieve remarkable outcomes, and receive the feedback they need to grow.”  

Lean structures its approach through a framework called the “3 Spheres of Influence,” which emphasizes mastery of craft, collaboration, and integrity. “These principles encourage our team members to reflect and grow both individually and as part of the Lean team,” Al-Falih added, noting that this cultural foundation has been instrumental in the company’s success.  

Looking ahead to 2025, Lean is well-positioned to capitalize on the rapid advancements in Open Banking in Saudi Arabia and Open Finance in the UAE. “For us, these frameworks represent the culmination of five years of hard work—lobbying, collaborating with regulators, and partnering with banks,” Al-Falih explained.  

The company’s focus will be on making these initiatives a reality for the market. “Our priority is to seize the opportunities these frameworks create and help bring the vision of Open Banking and Open Finance to life,” he said.  

Beyond regulatory developments, Lean is also exploring new ways to improve financial infrastructure for individuals and SMEs. “Our mission remains clear: to enable the next generation of financial innovation,” Al-Falih said, adding: “With the momentum we’ve built, we’re confident in our ability to continue scaling and delivering impact across the region.”  


Saudi Aramco cuts January 2025 LPG prices

Saudi Aramco cuts January 2025 LPG prices
Updated 31 December 2024
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Saudi Aramco cuts January 2025 LPG prices

Saudi Aramco cuts January 2025 LPG prices

RIYADH: Saudi Aramco has reduced the official selling prices for propane and butane for January 2025.

According to an official statement on Tuesday, the price of propane was lowered by $10 per tonne, while butane saw a $15 per tonne reduction compared to the previous month.

Propane and butane are both types of liquefied petroleum gas, commonly used for heating, vehicle fuel, and as a feedstock in the petrochemical industry. These products have distinct boiling points, making them suitable for different applications.

Aramco’s OSPs for LPG are widely used as benchmarks for contracts supplying the product from the Middle East to the Asia-Pacific region.

Demand for propane typically increases during the winter months, as it is heavily utilized for home heating.

Such seasonal demand spikes can lead to price fluctuations, as supply and demand dynamics come into play. Higher demand during colder months often results in rising prices, reflecting the basic economic principle of supply and demand.


ACWA Power secures $703m for Egyptian wind power plant 

ACWA Power secures $703m for Egyptian wind power plant 
Updated 31 December 2024
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ACWA Power secures $703m for Egyptian wind power plant 

ACWA Power secures $703m for Egyptian wind power plant 

RIYADH: Saudi utility giant ACWA Power has secured SR2.63 billion ($703 million) in financing to develop, operate, and maintain a 1,100-megawatt wind power plant in Egypt’s Suez governorate. 

In a statement to Tadawul, the company said the funding was sourced from the European Bank for Reconstruction and Development, African Development Bank, and British International Investment. 

Additional lenders include DEG Deutsche Investitions, the OPEC Fund for International Development, and Arab Petroleum Investments Corp., with a loan tenure of 20 years. 

The project aligns with Egypt’s green energy ambitions, aiming to generate 42 percent of the nation’s electricity from renewable sources. 

Principal debt for the project was financed by Standard Chartered Bank and Arab Bank through the European Bank for Reconstruction and Development’s B financing structure. The total investment cost of the plant is SR4.13 billion, with ACWA Power holding a 70 percent stake. 

The firm plays a pivotal role in Saudi Arabia’s renewable energy strategy, contributing to the Kingdom’s goal of generating 50 percent of its power from green sources. The Tadawul-listed company’s operations span 13 countries, underscoring its global ambitions in the utility sector. 

ACWA Power recently announced its entry into China, securing over 1 gigawatt of renewable energy projects. These initiatives, which include solar photovoltaic and wind energy, are jointly owned with leading Chinese renewable energy firms. 

Earlier this month, ACWA Power launched three renewable projects in Uzbekistan, involving wind, solar, and battery storage, with a combined investment of $3 billion. 

In October, the company signed four agreements worth SR6.69 billion during the Future Investment Initiative in Riyadh, targeting renewable energy and storage projects across the Gulf Cooperation Council region, China, Central Asia, and North Africa. 

The firm’s net profit for the first nine months of 2024 rose 15.74 percent year on year to SR1.25 billion, driven by increased revenue from electricity sales and operation and maintenance activities. 

Founded in 2004, ACWA Power manages a portfolio of 90 projects valued at SR94 billion, according to its website. The company continues to expand its footprint as a leader in renewable energy and utility services worldwide