Oil Updates – prices set to end week over 3% higher
Updated 15 March 2024
Arab News
LONDON: Oil prices edged lower on Friday but were on track to gain over 3 percent for the week, boosted by the International Energy Agency raising its 2024 oil demand forecasts and an unexpected decline in US stockpiles, according to Reuters.
Brent crude oil futures were down 59 cents or 0.6 percent to $84.83 a barrel at 13:20 a.m. Saudi time, after topping $85 a barrel for the first time since November on Thursday. US West Texas Intermediate crude were down 56 cents or 0.6 percent to $80.70.
“Crude futures were staging a mild retreat from fresh four-month peaks ... likely entering a consolidation phase to await further direction,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.
Prices had remained range-bound for much of the last month roughly between $80 to $84 a barrel before the IEA on Thursday raised its view on 2024 oil demand for a fourth time since November as Houthi attacks disrupt Red Sea shipping.
World oil demand will rise by 1.3 million barrels per day in 2024, the IEA said in its latest report, up 110,000 bpd from last month. It forecast a slight supply deficit this year should members of the OPEC and its allies alliance sustain their output cuts, having previously forecast a surplus.
The gains this week have come despite the US dollar strengthening at its fastest pace in eight weeks. A stronger dollar makes crude more expensive for users of other currencies.
Also supporting prices were Ukrainian strikes on Russian oil refineries, which caused a fire at Rosneft’s biggest refinery in one of the most serious attacks against the Kremlin’s energy sector in recent months.
US crude oil stockpiles also fell unexpectedly last week as refineries ramped up processing while gasoline inventories slumped as demand rose, the Energy Information Administration said on Wednesday.
On the demand side, China’s central bank left a key policy rate unchanged as authorities continued to prioritize currency stability amid uncertainty over the timing of expected US Federal Reserve interest rate cuts.
Lower interest rates cut consumer borrowing costs, which can boost economic growth and demand for oil.
In the US, some signs of slowing economic activity were seen as unlikely to spur the Federal Reserve to start cutting interest rates before June as other data on Thursday showed a larger-than-expected increase in producer prices last month.
RIYADH: The Argentine Embassy in collaboration with the Riyadh Chamber of Commerce and Industry hosted a seminar at the UN World Tourism Organization’s regional office in Riyadh on Monday, bringing together senior government officials and business leaders from both nations to explore trade and investment opportunities.
The seminar was held on the sidelines of an official visit by Argentina’s Foreign Minister Gerardo Werthein and focused on the country’s newly launched investment framework — the New Legal Framework for Major Investments in Argentina, also known as RIGI — and opportunities available to Saudi companies.
The RIGI program, which offers the global investment community access to projects in key sectors of the Argentine economy, is designed to attract large-scale international investments by offering significant incentives across key sectors, including mining and energy, infrastructure and tourism, technology and advanced industries and manufacturing.
Delegates and audience at the seminar organized by Argentine Embassy. (AN photo by Rashid Hassan)
It provides regulatory stability, tax incentives, and long-term predictability for foreign investors, ensuring that businesses operating in Argentina can expand with confidence and access high-growth opportunities.
Daniel Gonzalez Casartelli, Argentina’s deputy minister of energy and mining, said at the seminar that the objectives of the investment incentive scheme were to develop the economy, increase competitiveness, boost exports, and generate employment.
He said the incentives on exchange rate included incremental free exports and unrestricted foreign exchange access for equity and debt repayments. On tax it offered accelerated depreciation; tax loss carryforward without expiration date; income tax decrease to 25 percent compared to a general rate of 35 percent; VAT exemption for capex; and tax on dividends reduced to 3.5 percent after seven years of joining the RIGI, with the general rate at 7 percent.
Facundo Vila, ambassador of Argentina with guests after the seminar in Riyadh. (AN photo by Rashid Hassan)
The incentives on customs include full exemption from export duties, starting in the third year; exemption from tariffs on capital goods imports; and tariff and import quota exemptions for the value chain of RIGI projects.
Companies that adhere to the RIGI will benefit from a 30-year stability period, and evaluation of RIGI applications is guaranteed within 45 business days.
The minimum investment amount is $200 million, and companies should invest at least 40 percent of it in the first two years of the project.
Speaking to Arab News, Matias Javier Mana, the undersecretary of international financial relations for development at the Argentine Ministry of Economy, and who is part of the delegation, said: “We came with a very important delegation to present to Saudi investors very specific incentives, (a) large investment incentive regime that is part of our macro-economic program that will show the investors how we will give them benefits and also some certainty and regulation for them to have a safe environment to invest in Argentina.
“Those incentives include goals from tax reductions to customs, facilitated treatments and also legal protections, international arbitration and also some specific regimes for all the supply chains that are somehow related to the project presented.”
He added: “It’s a regime that only considers projects or investments of over $200 million. The main sectors that we have identified and that are acceptable … within this regime are oil and gas, midstream mining, renewable energy, tourism, AI, and nuclear energy.
“As for us, all these sectors represent what we intend to develop and all the potential opportunities that Argentina can offer to international investors; in this case Saudi Arabia.
“This is all within the mission that we are currently undergoing in Saudi Arabia, led by our minister of foreign affairs with the Saudi Arabian government (which is) in order for us to design a road map of bilateral exchanges and strengthen the cooperation and relationship between our countries.”
Demian Reidel, the chief of advisers to the Argentine president, and who is also a member of the visiting delegation, told Arab News: “I oversee a wide portfolio with the main interest in AI and nuclear energy, and I am here with the delegation to facilitate everything that covers these interests.”
Facundo Vila, the ambassador of Argentina to the Kingdom, told Arab News: “The delegation is here about the new incentives regime for large-scale investments in Argentina.
“They include the secretaries of energy and mining, because those are the two key sectors in which we think Argentina has a lot to offer.
“The presentation focused on the main advantages that investors and prospective foreign investment would enjoy in Argentina.
“We believe it (the RIGI) is a very good opportunity in areas in which Saudi has a lot of expertise, oil and gas for example.
“We have a big oil base in Argentina but that needs to be worked on and they need capital infrastructure to make it work.”
Closing Bell: Saudi benchmark index closes in green
Updated 10 February 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s Tadawul All Share Index increased on Monday, gaining 2.58 points, or 0.02 percent, to close at 12,471.72.
The total trading turnover of the benchmark index was SR5.93 billion ($1.58 billion), as 72 stocks advanced, while 159 retreated.
The MSCI Tadawul Index also increased by 0.68 points, or 0.04 percent, to close at 1,550.94.
The Kingdom’s parallel market, Nomu, gained 12.11 points, or 0.04 percent, to close at 31,426.76. This comes as 37 stocks advanced while 52 retreated.
Al-Babtain Power and Telecommunication Co. was the best-performing stock of the day, with its share price surging by 4.44 percent to SR47.
Other top performers included East Pipes Integrated Co. for Industry, which saw its share price rise by 3.75 percent to SR160.60, and Makkah Construction and Development Co., which saw a 3.52 percent increase to SR111.80.
Al Majed Oud Co. rose 3.32 percent to SR168, while Allied Cooperative Insurance Group gained 3.26 percent to SR17.76.
Al Yamamah Steel Industries Co. saw the steepest decline of the day, with its share price easing 6.32 percent to close at SR36.30.
Saudi Fisheries Co. fell 3.40 percent to SR53.90, while Leejam Sports Co. dropped 4.84 percent to SR169.20.
Thimar Development Holding Co. also faced a loss with its share price dipping 2.75 percent to SR56.50, while Shatirah House Restaurant Co. saw a 3.12 percent to settle at SR22.94.
On the announcements front, Leejam Sports Co. reported a 13 percent year-on-year growth in revenue for the financial year 2024, reaching SR1.50 billion. Net profit also surged by 28 percent, amounting to SR456 million compared to SR356 million in 2023.
The increase in revenue was driven by a 10 percent rise in subscription and membership revenue and a 31 percent increase in income from paid programs, including personal training and swimming.
The company’s revenue growth trailed historic trends partly due to changes in the subscription and brand mix.
Leejam also recorded notable one-off gains in 2024, including SR92 million from the sale of three land plots in Riyadh and SR18 million from favorable rent negotiations related to centers in Ras Al-Khaimah, UAE.
Despite the recorded gains, Leejam was among TASI’s worst performers.
Saudi Electricity Co. has announced plans to hold meetings with fixed-income investors starting Feb. 10 regarding a potential issuance of US dollar-denominated sukuk under its international sukuk program.
The issuance will be conducted through a special-purpose vehicle and offered to eligible investors in Saudi Arabia and internationally, subject to market conditions.
The sukuk will be senior unsecured and issued in compliance with relevant regulatory approvals and laws.
SEC has appointed a consortium of global and regional financial institutions, including HSBC, Standard Chartered Bank, BNP Paribas, and others, as joint lead managers for the potential offer.
The proceeds from the issuance will be used to support SEC’s general corporate purposes, including capital expenditures, and to fund projects aligned with its Green Sukuk Framework.
The final terms, including the value of the offer, will be determined based on market conditions and SEC’s requirements.
SEC’s share price saw a slight 0.23 percent increase on Monday to reach SR17.30.
US-based ServiceNow to launch data centers in Saudi Arabia in 2026
ServiceNow aims to build cloud infrastructure and develop essential skills to support its customers and partners better
Company announced major partnerships sealed during LEAP 2025 with Salam and stc
Updated 10 February 2025
Reina Takla Reem Walid
RIYADH: US-based software firm ServiceNow is set to launch data centers in Saudi Arabia in 2026, according to its Europe, the Middle East, and Africa president.
In an interview with Arab News on the sidelines of the second day of LEAP 2025, taking place in Riyadh from Feb. 9—12, Cathy Mauzaize revealed the date for the facilities, with the plans to develop them in the Kingdom announced at last year’s event.
The EMA president also talked up ServiceNow’s ambitions to build cloud infrastructure and develop essential skills in Saudi Arabia to support its customers and partners better.
ServiceNow’s plan falls in line with Saudi Arabia’s National Strategy for Data and Artificial Intelligence, which aims to train 40 percent of the workforce in essential skills to combat data and AI illiteracy and develop a talent pool of 20,000 data and AI specialists.
It also aligns with the strategy’s target of attracting SR75 billion ($19.99 billion) in local and foreign investments, as well as supporting over 300 startups to encourage entrepreneurship.
Speaking on the timeline of the date centers, Mauzaize said: "We’re going to, crossing my fingers, announce the services in 2026.”
She added that it is “time for us to build the data centers and make them available for our customers and partners here, in the Kingdom, but also, at the same time, we are investing a lot in creating skills, because if we don’t have skills, and especially in the young people, it’s going to be difficult for us to sustain the growth.”
During the interview, Mauzaize went on to highlight that AI and generative AI will have a major impact on the EMA economy.
“If you look at the numbers that IDC (International Data Corporation) predicts for EMA and how much wellness or how much, you know, it impacts on the economy, it will have $5 trillion by 2030,” she said.
“But if you go into Saudi Arabia, 52 percent of the CEOs say AI is top of mind and 79 (percent) are saying: ‘we know that’s going to have a material impact on the way we run our business,’” the EMA president added.
Mauzaize also underlined major partnerships sealed during LEAP 2025 with Salam, a leading digital infrastructure provider in the Kingdom, and the Saudi Telecom Co.
“Salam — it’s a big partnership to help them run on a much faster way, their own operation and to go after a brand-new set of customers in SME space. We have this vision together that, hey, let’s go modernize, help you develop your top line proper, new services embedded into platform and fuse with AI as a service to your end customer, and let’s together go after the small and medium business,” she said.
“STC, we are announcing again a very strategic partnership to help them on their modernization journey, but also as a partner to go to market together. We are very, very proud of those two announcements and we believe that those two will help us accelerate significantly how we get into the Kingdom with success,” the EMA president added.
Mauzaize explained that ServiceNow is the only AI platform designed specifically for business and digital transformation.
“We have a platform that combines data, the ability to collect all the data and to connect to any source of system, structured data and unstructured data. We are having AI at the core and now Gen AI, generative AI, that has ability to interact with the human touch and augment human and collaborate with human,” she said.
The EMA President added: “And then we have the workflow, and so the workflow are our ability to digitalize processes. If you think about it in any company anything you do is a process and then is a workflow, so you can either do workflow manually or do a workflow digitally and automate them.”
Held under the theme “Into New Worlds,” LEAP 2025 aims to expand business networking and investment opportunities in the tech sector.
The event plays a key role in Saudi Arabia’s ambition to become a global technology hub, aligning with its Vision 2030 plan to diversify the economy. As part of this initiative, the Kingdom has pledged $100 billion toward advancing its technology sector.
Saudi virtual hospital at forefront of AI integration, minister says
Seha Virtual Hospitalis reshaping patient care by eliminating geographical limitations and integrating advanced AI solutions
Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations
Updated 10 February 2025
Reina Takla Miguel Hadchity
RIYADH: Saudi Arabia’s Seha Virtual Hospital, recognized by the Guinness World Records as the world’s largest online medical initiative, is leading the way in transforming healthcare accessibility and efficiency through digital innovation.
The facility, linked to over 200 hospitals across the Kingdom, is reshaping patient care by eliminating geographical limitations and integrating advanced artificial intelligence solutions.
Speaking with Arab News on the sidelines of the LEAP 2025 tech conference in Riyadh, Abdullah Al-Issa, Saudi Arabia’s deputy minister for e-health and digital transformation, highlighted the government’s commitment to leveraging technology to enhance health care services.
“Digital is no longer a luxury; it is a necessity. The ministry has prioritized digitization to deliver high-quality services to beneficiaries, creating a deputyship responsible for strategy, enterprise architecture, and implementation of digital solutions,” Al-Issa stated.
Bridging gaps with Seha Virtual Hospital
The Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations.
“For rare specialties, patients no longer need to travel long distances to see a doctor. With Seha Virtual Hospital, consultations can happen remotely, ensuring timely diagnosis and treatment,” Al-Issa explained.
The establishment also powers initiatives like the Tele-ICU, which enables specialized consultants to assess critical patients remotely.
“Previously, patients requiring niche expertise had to be transferred via emergency air transport. Now, they can be treated in their hometown hospitals, reducing logistical burdens and improving outcomes,” he added.
AI-driven health care revolution
Saudi Arabia’s Ministry of Health has been at the forefront of artificial intelligence integration, using technology to enhance diagnostics and preventive care. “For two years, we have utilized AI in Seha Virtual Hospital, including AI-driven x-ray solutions that detect breast cancer and other conditions, assisting consultants by flagging abnormalities before they even examine scans,” said Al-Issa.
AI also plays a pivotal role in large-scale preventive health care. “We have screened over 30 million people for non-communicable diseases like diabetes and hypertension, categorizing them into high-, medium-, and low-risk groups. Those at high risk receive further assessment and early intervention, aligning with Saudi Vision 2030’s goal of increasing life expectancy to 80 years,” he noted.
Partnerships and cybersecurity in digital health
Collaboration with the private sector remains a cornerstone of Saudi Arabia’s health care strategy. “We welcome partnerships with innovators and technology firms to enhance services. Working alone isn’t enough— we must collaborate to maximize technology’s benefits for patients, doctors, and the entire ecosystem,” Al-Issa emphasized.
With the rapid digitalization of health care, cybersecurity has become a top priority. “We are fully aligned with the National Cybersecurity Authority’s recommendations to safeguard patient data and prevent misuse of technology,” he added.
Nafees: the unified medical record system
The Ministry of Health is also advancing health care integration through Nafees, a unified medical record system that consolidates patient health data across providers.
“Patients can now access their medical history through the Sehhaty app, while health care providers can view past diagnoses and test results, eliminating redundant procedures and enhancing efficiency,” Al-Issa said.
“We are midway through this project, with many providers already connected and more to follow in the coming years,” he added.
Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn
Facility has capacity of 1.5 gigawatts and will be built in Oxagon’s industrial quarter and powered entirely by renewable energy
First phase, a 300-megawatt facility, is set to be operational by 2028
Updated 10 February 2025
Reina Takla Nour El-Shaeri
RIYADH: Saudi Arabia is set to host one of the world’s largest artificial intelligence data centers following a $5 billion investment by DataVolt in Oxagon, the industrial city within NEOM.
The facility, with a capacity of 1.5 gigawatts, will be built in Oxagon’s industrial quarter and powered entirely by renewable energy.
Speaking to Arab News at the LEAP 2025 tech conference in Riyadh, Oxagon Executive Director Howard Wu highlighted the significance of the project’s architectural design and AI workload management.
“This marks a very important step because you really have a data center — in the case of our partnership with DataVolt — that is building the entire facility from the ground up. So, it’s really an end-to-end infrastructure, built from the energy grid to the building, to the AI servers, to the file system, operating system, runtime, and application,” he said.
Wu emphasized that the data center will be groundbreaking in scale and sustainability.
When completed, he said it will be one of the world’s largest at 1.5GW and will run entirely on renewable energy.
To enhance the Kingdom's AI capabilities, @DataVolt_KSA announced at #Leap25 an investment in @NEOMOxagon to develop a large-scale, innovative AI data center campus in NEOM, making it a global destination for advanced computing and innovation. #LEAP25pic.twitter.com/4cfsuMDVp2
The first phase, a 300-megawatt facility, is set to be operational by 2028. Due to the energy-intensive nature of computing and cooling systems, Wu explained that data centers are typically measured by power capacity.
“On a site-wide level, we would say it’s a 300 MW site. You have huge amounts of power to run them, and because of the density of the chips, they generate a huge amount of heat. Then you have to cool them to bring the temperature down,” he said.
As demand for AI-driven data processing and cloud computing continues to surge — fueled by platforms like TikTok and Instagram — Oxagon’s AI data center is expected to play a pivotal role in the region’s digital transformation.
“As this demand continues to grow, we certainly see a strong growth market within the region, but also globally,” the executive said.
He added that while computing power continues to advance in line with Moore’s Law, technological innovations allow for upgrades without a proportional rise in energy consumption, making power capacity the key metric for measuring data centers.
The decision to partner with DataVolt was driven by the company’s financial commitment, technological expertise, and innovative approach to data center architecture.
Wu highlighted the key qualities that made DataVolt an ideal partner, stating that the company brought significant capital investment and a strong vision. “The third part is their innovative thinking, along with all the architecture and engineering,” he said. He added that combining these qualities made it extremely difficult to find a partner that met all three major criteria.
Once completed, the AI data center will enhance Oxagon’s growing technology ecosystem, benefiting its tenants and partners while reinforcing Saudi Arabia’s position as a global leader in digital infrastructure.
