Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025
Saudi Arabia is aiming to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by 2030. Shutterstock
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Updated 03 December 2024
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Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

Saudi Arabia to boost ICT sector with multi-billion-dollar firms in 2025

RIYADH: Saudi Arabia is set to launch two multi-billion-dollar companies by the end of 2025 as part of plans to boost its communications and information technology sector.

The new tech firms are among a range of initiatives set out in the Ministry of Finance’s budget report, which also includes plans to launch a Saudi satellite for space weather research under the Artemis 2 mission. 

Under the Kingdom’s economic diversification plan Vision 2030, Saudi Arabia is aiming to boost the technology sector’s contribution to GDP from 1 percent to 5 percent by the end of the decade.

The budget report also revealed a SR42 billion ($11.2 billion) allocation to the infrastructure and transportation sector for 2025. 

The sector’s main functions include the development of roads, ports, airports, and real estate. 

It also encompasses communications, information technology, data and artificial intelligence, and digital government. Additionally, it oversees postal services, space initiatives, and industrial cities. 

Digital and infrastructure developments 

The government is set to enhance data management by advancing the National Data Index, promoting responsible artificial intelligence adoption, and expanding the National Data Bank. 

Smart city initiatives focused on safety and sustainability are also being prioritized. 

In transportation, planned developments include new air carrier licenses for Dammam and Riyadh Airlines, expanded public transport services, and six new logistics zones at Saudi ports. 

These efforts align with the Kingdom’s Vision 2030 strategy to create a modern, efficient, and innovation-driven economy.  

The Kingdom is building a thriving digital economy by adopting advanced technologies, with data and AI as key enablers. 

By fostering research, development, and innovation, and forming strategic global partnerships, Saudi Arabia aims to cultivate entrepreneurship and deliver groundbreaking solutions, establishing itself as a hub for technological excellence and sustainable development. 

Central to this transformation is the Kingdom’s commitment to creating a business-friendly climate through a range of initiatives. 

The Regional Headquarters Program offers compelling incentives, including a 30-year tax exemption, to attract global companies to set up their regional offices in Saudi Arabia. 

This has significantly boosted the country’s foreign direct investment. In 2023, FDI inflows reached SR96 billion, according to the Ministry of Investment, exceeding the National Investment Strategy target of SR83 billion by 16 percent. 

As a percentage of nominal GDP, FDI stood at 2.4 percent, aligning with the NIS goal. 

The surge in investment licenses further highlights this growth, with the Kingdom issuing 3,810 licenses in the third quarter of 2024 — a 73.7 percent increase compared to the previous year. 

Notably, information and communication technology licenses saw a 68 percent rise, underscoring the Kingdom’s strong emphasis on advancing its digital economy and technology sector. 

Digital economy and space milestones 

The Ministry of Finance report noted key recent achievements in the digital economy, including Saudi Arabia ranking sixth globally, and second among G20 countries, in the UN E-Government Development Index.

The Kingdom also ranked second among G20 nations in the ITU’s ICT Development Index 2024, which measures global progress in digital inclusion and infrastructure. 

This index tracks global progress in digital inclusion and infrastructure, guiding policy and investments in technology, and reflects countries’ performance in digital adoption and connectivity. 

Other achievements included 15 companies graduating from the Space Tech Entrepreneurship Incubation Program, attracting over SR41 billion in investments. The National Semiconductor Hub was also launched, focusing on localizing semiconductor technologies and fostering advanced education collaborations. 

Many nations are harnessing space technology to drive digital innovation and economic growth. Saudi Arabia, as highlighted by the World Economic Forum, is leveraging space exploration to diversify its economy and build a technology-driven industry. 

In a historic milestone, Saudi astronauts journeyed to the International Space Station for the first time in 2023, reflecting the Kingdom’s growing focus on space. 

Under the Vision 2030 initiative, Saudi Arabia has committed $2 billion over the next decade to developing its space sector. 

This investment is set to advance scientific research, enhance national security, and accelerate the Kingdom’s transition from a resource-dependent economy to a knowledge-based one. 

Saudi Arabia has also announced plans to strengthen ties with NASA and global partners to advance space-related industries, digital innovation, and scientific collaboration. 

During a recent visit to the US, Saudi Space Commission Chairman Abdullah Al-Swaha discussed strategic partnerships with NASA Administrator Bill Nelson and explored investment opportunities in space, AI, and the digital economy with US leaders. 

AI and research advancements 

The Kingdom made significant strides in data analytics, integrating data from 27 government systems into a centralized data lake. The Arabic-language generative AI model “ALLaM” received global recognition, ranking first in its category, enhancing Arabic AI capabilities. 

This model was developed to process and understand Arabic. It aims to enhance the capabilities of artificial intelligence in the language, making it more accessible and effective across various applications. 

It was ranked first globally in its category by the Arabic Massive Multitask Language Understanding standard evaluation, a leading benchmark for Arabic language models. 

During the Hajj season, smart solutions like Basier and Sawaher, along with AI-powered cameras, were deployed to improve crowd management and ensure pilgrim safety. 

Additionally, the Kingdom reinforced its position as a global AI innovation hub by hosting the third Global AI Summit to foster international collaboration. 

Research, development and innovation 

The Open Access National Gateway was launched to provide scientists and researchers access to advanced infrastructure and over 1,000 laboratories across 30 agencies. 

The transportation and logistics sector saw a 6.4 percent annual growth in GDP in the first half of 2024, with over SR200 billion in investment contracts signed to enhance services and partnerships. 

Saudi Arabia also secured leadership roles in several international organizations, bolstering its global presence as a logistics hub. This includes hosting the UNCTAD Global Supply Chain Forum in 2026, chairing the Arab Civil Aviation Organization, and securing a seat on the International Maritime Organization Council. 

Additionally, the Future of Aviation Forum 24 was held in Riyadh, bringing together global aviation leaders and securing investment offers worth SR375 billion for the aviation sector. 

Transportation and logistics 

During the Hajj season of 2024, several eco-friendly and modern transportation initiatives were implemented to improve services for pilgrims. 

These included self-driving vehicles, a self-driving air taxi experience, and the use of rubberized and cooling asphalt at holy sites. 

Additionally, aircraft seat capacity for pilgrims was increased to accommodate over 24 million passengers, while the Haramain Train saw a 42 percent rise in passengers, serving more than 1.07 million pilgrims. 

Other initiatives included the launch of the Passengers with No Bags program, performance-based contracts for road network maintenance, and the establishment of the Unified Law for International Land Transport among GCC countries. 

The Kingdom also launched five travel lounges at major airports and expanded Abha International Airport. 


Closing Bell: Saudi main index closes in green at 12,388   

Closing Bell: Saudi main index closes in green at 12,388   
Updated 20 February 2025
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Closing Bell: Saudi main index closes in green at 12,388   

Closing Bell: Saudi main index closes in green at 12,388   

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Thursday, gaining 70.56 points, or 0.57 percent, to close at 12,388.15. 

The total trading turnover of the benchmark index was SR5.95 billion ($1.58 billion), as 95 of the listed stocks advanced, while 137 retreated.    

The MSCI Tadawul Index increased by 13.19 points, or 0.86 percent, to close at 1,551.49. 

The Kingdom’s parallel market Nomu rose, gaining 44.37 points, or 0.14 percent, to close at 31,474.69. This came as 40 of the listed stocks advanced, while 47 retreated. 

The best-performing stock was Anaam International Holding Group, with its share price surging by 6.33 percent to SR23.84. 

Other top performers included Etihad Etisalat Co., which saw its share price rise by 5.35 percent to SR63, and Tourism Enterprise Co., which saw a 4.65 percent increase to SR0.90. 

The biggest decline of the day was seen in Al Sagr Cooperative Insurance Co., with its share price dropping 9.83 percent to SR15.96. 

Saudi Steel Pipe Co. saw its share price drop 6.77 percent to close at SR67.50, while Astra Industrial Group fell 4.81 percent to SR182, reflecting broader market pressures.

Following this, Saudi Steel Pipe Co. reported its annual results for 2024, with net profits rising 15.21 percent year-on-year to SR250 million. 

In a Tadawul filing, the company said the profit increase was driven by a rise in gross profit to SR399 million in 2024 from SR283 million the previous year, largely due to higher sales volumes. 

Astra Industrial Group reported interim financial results for the period ending Dec. 31, with net profits rising 23.99 percent year on year to SR589.34 million. 

The company attributed the growth to higher gross profit across all sectors, increased sales value, and a rise in other income. 

Meanwhile, shares of Yamama Cement Co. fell 1.89 percent on the main market today, closing at SR36.25. 

In a separate announcement, Nayifat Finance Co. posted its annual results for 2024, with net profits surging 47.93 percent to SR131.23 million. 

The company credited the profit increase to higher operational earnings, driven by a decline in the net charge for expected credit loss allowance due to improved write-off recoveries. 

In today’s trading, Nayifat Finance Co.’s shares edged up 0.83 percent on the main market to close at SR14.74. 


Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment

Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment
Updated 20 February 2025
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Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment

Qurayyah power plant to expand by 3.01 GW thanks to $3.6bn investment

JEDDAH: Saudi Arabia is boosting its energy security with an SR13.4 billion ($3.57 billion) investment to expand the Qurayyah power plant, adding 3.01 gigawatts to meet growing demand and support economic growth.

Saudi Electricity Co. and ACWA Power have signed a power purchase agreement with Saudi Power Procurement Co., the Kingdom’s sole licensed electricity buyer, to expand Qurayyah Independent Power Plant. This facility is the largest combined-cycle gas-fired independent energy station in the world.

The initiative supports the Kingdom’s Vision 2030 by improving electricity generation efficiency, reducing costs, and diversifying energy sources to replace liquid fuels in the power sector. It aims to enhance reliability and sustainability through advanced combined-cycle gas turbine technology while reducing carbon emissions and promoting environmental conservation.

The project, overseen by the Ministry of Energy, aims to increase Saudi Arabia’s electricity capacity and efficiency by adding combined-cycle power plant units designed for future carbon capture. According to the principal buyer, the deal was signed with a consortium led by ACWA Power, SEC, and Hajji Abdullah Alireza & Co. Ltd., with SEC and ACWA Power each holding a 40 percent stake.

As one of the Kingdom’s largest power generation projects, it includes the financing, construction, ownership, and operation of a combined-cycle gas power plant, along with the development and transfer of a 380-kilovolt electrical substation, according to the Saudi Press Agency.

SEC is the largest electricity producer, transmitter, and distributor in the Middle East and North Africa, serving over 11 million customers.

ACWA Power — the world’s largest private desalination company — announced that on Feb. 19 it received a notice from the Al-Shuaiba 2 Solar PV Independent Power Plant project company, confirming that it has been granted the commercial operation certificate by the SPPC for the first, second and third groups, with a total capacity of 2,060 MW.

In a statement on Tadawul, the firm added that the initiative is now fully operational, noting that it owns a net stake of 35.01 percent share in the project company.

The body expects the financial impact to be reflected in the current year’s second quarter.


Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa
Updated 20 February 2025
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Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

Saudi investment ministry inks deal with Sana to boost entrepreneurial ecosystem in Al-Ahsa

RIYADH: A new cooperation agreement between the Ministry of Investment and Prince Ahmed bin Fahd bin Salman Center will see Saudi Arabia enhance its entrepreneurial ecosystem in the Al-Ahsa region.

The deal signed with the center, also known as Sana, focuses on attracting pioneering companies and innovators while fostering a business-friendly environment.

The Kingdom is increasingly being recognized for its growing enteprise-friendly landscape, securing third position in the 2023-2024 Global Entrepreneurship Monitor report.

The latest initiative, inked at the Al-Ahsa Forum 2025 in Al-Ahsa, also seeks to foster greater engagement with creative thinkers and business leaders through investment meetings and events, and will support the issuance of entrepreneurial licenses and provide access to essential services.

Moreover, the Sana agreement seeks to explore investment opportunities, encourage strategic partnerships, and promote investment alliances that enhance the competitiveness of the entrepreneurship sector in Saudi Arabia.

The new deal comes against a backdrop of venture capital pouring into the Kingdom, with the country retaining its position as the leading destination for such funds in the MENA region in 2024, raising $750 million, according to a report from regional venture platform MAGNiTT.

This marked the second consecutive year the Kingdom has led regional VC rankings. Saudi Arabia accounted for 40 percent of the total amount deployed in MENA, closing 178 deals, the most of any nation in the region.

Speaking to Arab News at at the LEAP 2025 Tech Conference held in February, Mohammed Al-Zubi —founder of Saudi venture capital firm Nama Ventures — explained that the nation is rapidly becoming a key player in the regional technology ecosystem and is emerging as the “center of gravity” for Middle East startups.

Al-Zubi believes Saudi Arabia’s support for the startup ecosystem is unmatched globally. Having spent time in Silicon Valley, London, and the Middle East, he argued that the Kingdom’s government-led initiatives are unparalleled.

According to the international policy advisory and research organization Startup Genome, Riyadh ranked among the top five startup ecosystems in the Middle East and North Africa in June, in collaboration with the Global Entrepreneurship Network.


King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol
Updated 20 February 2025
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King Salman approves Saudi riyal symbol

King Salman approves Saudi riyal symbol

RIYADH: King Salman on Thursday approved the official symbol for the Saudi riyal, marking the beginning of a new chapter in the Kingdom’s financial journey, as reported by the Saudi Press Agency.

Saudi Central Bank Gov. Ayman Al-Sayari expressed his gratitude to the nation’s leadership for launching the symbol, which he believes “reinforces Saudi Arabia’s financial identity both locally and globally.”

Al-Sayari further noted that this initiative underscores the growing international influence of the Saudi riyal, while also fostering a sense of national pride and cultural unity. He added that the newly designed symbol represents the Kingdom’s rich cultural heritage.

The symbol, which blends Arabic calligraphy with the name of the national currency, “riyal,” will be utilized in financial and commercial transactions both within the Kingdom and internationally.

The central bank governor also commended the collaborative efforts of all parties involved in the project, including the Ministry of Culture, the Ministry of Information, and the Saudi Standards, Metrology, and Quality Organization.

Introducing a symbol for the riyal reinforces the Kingdom’s financial and economic identity, further positioning the Saudi riyal as a credible and globally recognized currency within the international financial system.

It also simplifies the representation of the riyal in financial transactions and commercial dealings.

According to SAMA, the symbol will be rolled out immediately, with its integration into financial and commercial transactions, as well as various applications, occurring gradually in coordination with relevant entities.


Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
Updated 20 February 2025
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Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024

Saudi Wafi Energy Pakistan reports $11.8 million profit for 2024
  • The company became the majority shareholder of Shell Pakistan Limited in November 2024
  • It has formed a partnership in Thar Coal Project following a win in Saindak mining project

ISLAMABAD: Saudi company Wafi Energy Pakistan Limited has announced its financial results for 2024, reporting a profit of Rs3.3 billion ($11.8 million), according to a statement from the group on Thursday.
Wafi Energy, an affiliate of the Asyad Group, became the majority shareholder of Shell Pakistan Limited (SPL) in November last year and now holds approximately 87.78% of the total issued share capital of SPL. However, the Shell brand will remain in Pakistan through retail and brand licensing agreements, with SPL as the exclusive brand licensee.
The financials of the company for the year ending December 2024 were announced by its board of directors.
“The company reported a profit after tax of Rs3.3 billion for 2024 compared to a profit of Rs5.8 billion [$20.7 million] in 2023,” the company said. “It is important to note that the 2023 results included a one-time income of PKR10.7 billion [$38.3 million] related to the waiver of Shell Group liabilities.”
The company highlighted that it increased its market share with Helix and Advance Lubricants and formed a partnership in the Thar Coal Project following a win in the Saindak Gold and Copper mining project.
“The mobility business also made significant strides, expanding its network by introducing 16 new sites and rebuilding nine existing ones,” the statement added. “The convenience retail business demonstrated strong growth, with a 28% year-on-year increase.”
SPL is one of the oldest multinationals in Pakistan, with a network of over 600 sites, countrywide storage facilities and a broad portfolio of global lubricant brands.
Shell has supported Pakistan’s development by providing energy for major projects like Mangla Dam and Kotri Barrage, powering Pakistan International Airlines’ first flights, expanding road infrastructure and fostering innovation among local entrepreneurs.