Saudi Arabia launches February ‘Sah’ savings with 4.94% return
Minimum subscription amount is SR1,000 and the maximum total issuance per user during the program period is SR200,000
Kingdom aims to raise savings rate among residents from 6% to the international benchmark of 10% by 2030
Updated 02 February 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has launched the second round of its subscription-based savings product, Sah, for 2025, offering a competitive return of 4.94 percent for February.
Issued by the Ministry of Finance and organized by the National Debt Management Center, the Sah bonds are the Kingdom’s first savings product designed specifically for individuals.
Structured within the local bond program and denominated in Saudi riyals, Sah offers attractive returns to promote financial stability and growth among citizens.
The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which aims to raise the savings rate among residents from 6 percent to the international benchmark of 10 percent by the end of the decade.
The Shariah-compliant, government-backed sukuk began at 10:00 a.m. Saudi time on Feb. 2 and will remain open until 3:00 p.m. on Feb. 4. Redemption amounts are expected to be paid within a year, as announced by the NDMC on X.
Sah offers fee-free, low-risk returns and is available through the digital platforms of various approved financial institutions. The bonds are issued monthly based on the issuance schedule, with a one-year savings period, fixed returns, and profits paid out at the bond’s maturity.
The minimum subscription amount is SR1,000 ($266), corresponding to the value of one bond, while the maximum total issuance per user during the program period is SR200,000. Returns are paid monthly per the issuance calendar.
The savings period lasts one year with a fixed return, and accrued profits are disbursed at the bond’s maturity. Future returns will be influenced by market conditions on a month-to-month basis.
The product is available to Saudi nationals aged 18 and older, who must open an account with either SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al-Rajhi Capital.
Last month, NDMC announced the closure of the year’s first issuance with a total amount allocated of SR3.724 billion. It was divided into four tranches, with the first valued at SR1.255 billion to mature in 2029 and the second worth SR1.405 billion, maturing in 2032. The third tranche totaled SR1.036 billion to mature in 2036, while the fourth amounted to SR28 million and matures in 2039.
The initial 2025 issuance concluded on Jan. 7, offering a competitive return of 4.95 percent over its three-day subscription period.
Saudi’s sports ambitions are fueling economic growth
Attracting global attention and investment is the plan, says expert
Target: 1.5% of non-oil GDP from sports by 2030, creating 140,000 jobs
Updated 12 sec ago
Reem Walid
RIYADH: From Formula One to boxing, golf to the FIFA World Cup, Saudi Arabia is rapidly establishing itself as a global sports hub.
But beyond hosting world-class events, the Kingdom’s push is a key pillar of Vision 2030, its economic diversification strategy.
Saudi Arabia has secured hosting rights for major sporting events — including motorsports, tennis, and golf’s LIV Tour — aiming to boost tourism, create business opportunities, and generate revenue from ticket sales, sponsorships, and broadcasting rights.
Peter Daire, senior executive advisor of sports at PwC Middle East, highlighted the Kingdom’s long-term vision for sports as a major economic driver.
Peter Daire, senior executive advisor of sports at PwC Middle East. Supplied
“According to our Global Sports Survey 2023, the Middle East sports sector, including Saudi Arabia, is expected to generate substantial economic value, with Saudi’s sports economy predicted to contribute up to $5.9 billion by 2030,” he said.
“This growth is driven by ongoing infrastructure projects and the expansion of world-class facilities across the Kingdom. Additionally, events like Formula E, the Saudi International Golf Tournament, Esports investments, and high-profile football matches in the Saudi Pro League have been a leading factor in attracting global attention and investment, further boosting the tourism and hospitality sectors,” Daire added.
Jurg Kronenberg, management consultant at Bain & Co., noted that Saudi Arabia aims to generate 1.5 percent of its non-oil gross domestic product from sports by 2030, creating over 140,000 jobs.
“Achieving this growth will require both infrastructure investments — such as World Cup stadiums, mass sports facilities — as well as sector activation, through privatization and professionalization of sports, new leagues and competitions, creation of local IP,” he said.
Jurg Kronenberg, management consultant at Bain & Co. Supplied
“Sports has a unique potential to be the catalyst of societal and economic change in KSA and to support the development of a vibrant economy,” Kronenberg added.
Daire emphasized that the government has prioritized the private sector’s involvement to foster a vibrant ecosystem for sports business.
“Partnerships with European football clubs and players have helped position Saudi Arabia as a central player in the international sports landscape.
“In addition to this, developing local talent within the Kingdom, and ensuring a long-term legacy of Saudi sport business expertise is of key importance for the sector,” Daire said.
He noted that integrating cutting-edge technologies — such as AI, data analytics, and digital media — into sports management and fan engagement is driving growth across multiple industries.
Mega infrastructure and investments
Kronenberg pointed out that Saudi Arabia’s sports strategy includes landmark projects like the 11 state-of-the-art stadiums planned for FIFA World Cup 2034 and Riyadh’s 135-km Sports Boulevard.
Beyond high-profile venues, large-scale infrastructure projects are being developed to encourage mass sports participation, alongside financial incentives to professionalize clubs.
“In football, a bold privatization initiative is underway, transitioning historically state-owned clubs to private ownership,” Kronenberg said.
“Beyond football, Saudi Arabia is cultivating a diversified sports ecosystem, investing into the professionalization of several existing sports and supporting emerging disciplines,” he added.
Kronenberg said this approach is accelerating economic diversification by creating new revenue streams, investment opportunities, and valuable intellectual property.
Federico Pienovi, chief business officer and CEO for APAC and MENA at Globant, highlighted Saudi Arabia’s strategic investment of over $2 billion into sports infrastructure, events, and global partnerships.
Federico Pienovi, chief business officer and CEO for APAC and MENA at Globant. Supplied
“With major events like the Asian Games and FIFA World Cup 2034 on the horizon, the Saudi government is shaping a multi-billion-dollar sports ecosystem primed for growth,” Pienovi said.
He explained that Saudi Arabia’s giga-projects, including Qiddiya Entertainment City, are fertile ground to combine advanced tech with the passion for sports, making the Kingdom a world-class destination.
Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little, emphasized that signing global stars like Cristiano Ronaldo and Karim Benzema has boosted the Saudi Pro League’s international profile, attracting sponsors and increasing viewership.
“Developing league infrastructure and operations supports the league’s competitive edge and market value. These investments increase tourism, promote national pride, and inspire local talent to pursue professional football careers,” he said.
Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little. Supplied
Khan added that these efforts integrate Saudi Arabia more deeply into the global football ecosystem, generating revenue from broadcasting and sponsorships.
Ivan Shapochkin, a principal at Oliver Wyman’s Dubai office, pointed out that with the global sports industry expected to near $1 trillion by 2030, Saudi Arabia is aligning its sports vision with future-ready strategies.
“By quadrupling its sports economy by 2030, with private sector contributions driving at least 25 percent, Saudi Arabia is reaping direct revenues from ticket sales, media rights, sponsorships, and merchandising.
Ivan Shapochkin, a principal at Oliver Wyman’s Dubai office. Supplied
“Beyond this, sports are invigorating tourism, hospitality, and transport sectors, creating ripple effects across the broader economy,” Shapochkin said.
Given the nascency of the sports ecosystem in Saudi Arabia, the sector provides a particular opportunity for entrepreneurs and investors to help shape the industry and leapfrog others, according to Bain & Co.’s Kronenberg.
“This might include use cases like new ownership models and fan engagement through tokenization, unique voting rights, or new channels and technologies to stream matches,” he said.
Kronenberg said the Kingdom could be the test ground for a whole set of new technologies with a young and tech-savvy population, as well as an ecosystem that encourages a “clean slate” approach to technology deployment.
PwC’s Daire emphasized that Saudi Arabia is embracing digital transformation in sports, incorporating AI, virtual reality, and blockchain to enhance athlete performance and fan experience.
“According to our latest esports report ‘Centre of the Game,’ technology is enabling smarter sports management, real-time data analysis for performance improvement, and immersive fan experiences, from virtual stadium tours to personalized content,” he said.
“This transformation is not only improving operational efficiencies within the sports sector but also generating new revenue streams, such as data-driven sponsorships, and virtual fan engagement platforms,” Daire added.
Sports-tech on the Rise
Shapochkin of Oliver Wyman pointed out that globally, one in three sports fans now consume games on digital platforms, signaling a shift toward personalized, tech-driven engagement.
“The sports-tech market is expected to surpass $40 billion by 2027, driven by innovations like AR/VR (Augmented Reality/Virtual Reality), performance tracking, eSports, and AI-powered analytics.
“Saudi Arabia, with its youthful, tech-savvy population and strategic investments through entities like SAVVY Gaming Group and PIF (Public Investment Fund), is at the forefront of this shift,” he said.
Shapochkin also noted that eSports alone is projected to contribute over $13 billion to the Saudi economy by 2030.
As Saudi Arabia continues hosting major events like the 2029 Asian Winter Games and FIFA World Cup 2034, the adoption of smart venues, Internet of Things applications, and advanced crowd management systems is expected to accelerate.
With sports and technology merging, Saudi Arabia is not just redefining its role in the global sports industry — it is shaping the future of sports business.
LEAP 2025: Saudi Arabia’s tech ambitions take center stage
Updated 08 February 2025
Nirmal Narayanan
RIYADH: Saudi Arabia is set to host its flagship technology event, LEAP 2025, in Riyadh from Feb. 9, bringing together visionaries, innovators, and investors from around the world. The latest edition follows last year’s record-breaking LEAP 2024, which saw $13.4 billion in investments and project commitments.
Under the theme “Into New Worlds,” LEAP 2025 aims to expand business networking and investment opportunities in the tech sector. The event plays a critical 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.
This comes as a World Economic Forum report projected that investment in research, development, and innovation will add $16 billion to Saudi Arabia’s GDP by 2030.
The government has committed to investing 2.5 percent of the nation’s annual GDP in the sector by 2040.
LEAP 2025 is co-organized by Tahaluf and the Ministry of Communications and Information Technology, in partnership with Informa PLC, the Saudi Federation for Cybersecurity, Programming and Drones, and the Events Investment Fund.
According to the event’s website, this year’s LEAP is expected to host more than 680 tech startups, 1,100 speakers, 1,800 technology brands, and over 170,000 visitors.
Driving tech aspirations
Industry leaders view LEAP as a catalyst for Saudi Arabia’s technological ambitions.
“The future of technology is being shaped by ecosystems that blend digital innovation with real-world transformation. Saudi Arabia’s journey, highlighted at LEAP, showcases how technology is driving giga-projects such as NEOM, Red Sea Global, and Qiddiya,” said Mamdouh Al-Doubayan, managing director of Globant in the Middle East and North Africa.
Mamdouh Al-Doubayan, managing director of Globant in the Middle East and North Africa. Supplied
“These initiatives demonstrate that building a knowledge-based economy is not just about deploying cutting-edge tools — it’s about fostering environments where innovation solves tangible challenges and drives societal progress,” he added.
Globant is among the companies supporting the Kingdom’s Vision 2030 through tech-driven collaboration.
In December, Saudi Minister of Communications and Information Technology Abdullah Al-Swaha underscored the conference’s role in realizing the Kingdom’s economic transformation.
“The decision to move to a ticketed format this year makes LEAP more of an exclusive experience for attendees and relevant to today’s global technology elite,” Al-Swaha said.
“LEAP 2025 will showcase exceptional technology innovations, business opportunities, and content — ensuring Saudi Arabia becomes the world’s undisputed technology aggregator,” he added.
Thibault Werle, managing director and partner at Boston Consulting Group, emphasized LEAP’s role in positioning Saudi Arabia as a regional tech leader.
Thibault Werle, managing director and partner at Boston Consulting Group. Supplied
“In only three years, LEAP has become a flagship event uniting tech leaders, investors, and entrepreneurs, cementing the Kingdom’s role as a hub for transformative technologies shaping industries and economies alike,” Werle said.
Werle added that Saudi Arabia is not merely adopting technology but actively reshaping its future by building a dynamic ecosystem that fosters innovation and entrepreneurship.
Programs and speakers
LEAP 2025 will feature the return of DeepFest, the region’s leading forum on artificial intelligence, as well as new segments such as the SportsTech Track and Tech Arena.
The SportsTech Track will highlight cutting-edge innovations in sports technology, featuring live demos, industry announcements, and insights from leading figures. Notable speakers include Patrice Evra, former Manchester United forward; Mathieu Flamini, co-founder of GF Biochemicals and former French international; and Iker Casillas, ex-Real Madrid and Spain goalkeeper.
Tech Arena, another new addition, will offer hands-on experiences with prototypes and live product demonstrations. The Startup Stage will serve as a platform for emerging entrepreneurs to pitch groundbreaking ideas in the technology sector.
LEAP 2025 will kick off with an opening address by Al-Swaha, followed by keynote speeches from Charbel Aoun, smart city lead at NVIDIA for Europe, the Middle East, and Africa, and Arvind Krishna, chairman and CEO of IBM.
Other prominent speakers include Prince Faisal bin Bandar bin Sultan Al-Saud, chairman of the Saudi Esports Federation; Alison Wagonfeld, chief marketing officer of Google Cloud; Kam Ghaffarian, executive chairman of Axiom Space; and Javier Tebas, president of La Liga.
Industry heavyweights such as Saudi Aramco, PepsiCo, Logitech, Lucid, NEOM, and the Royal Commission of AlUla will be among the key participants.
“We are thrilled to join LEAP 2025, a pivotal event that provides a unique platform highlighting the latest advancements in technology and innovation. We look forward to engaging with industry leaders, exploring new partnerships, and showcasing our innovations that empower users to create, collaborate, and bring their creative visions to life,” said Rocky Tang, general manager of enterprise development at Wondershare.
Håkan Cervell, vice president and head of Saudi Arabia at Ericsson Middle East and Africa, said the company’s presence at LEAP reflects its commitment to supporting Vision 2030.
“Like every year, we are truly excited to showcase Ericsson’s innovative technologies at LEAP 2025 and how they are empowering a sustainable, connected future for Saudi Arabia and beyond,” Cervell said.
Expanding opportunities
Beyond panel discussions and keynotes, LEAP 2025 will provide a wide range of networking and investment opportunities. The conference will include investor matchmaking programs, exclusive networking lounges, and specialized workshops tailored to startups and enterprises looking to scale in Saudi Arabia’s burgeoning tech ecosystem.
Another highlight of this year’s event is the Future Mobility Pavilion, where companies specializing in electric vehicles, autonomous driving, and smart transportation solutions will showcase their latest developments. Industry leaders from Tesla, Lucid Motors, and Saudi Public Transport Company are expected to participate in discussions about the future of mobility in the Kingdom.
LEAP 2025 will also emphasize advancements in cybersecurity and blockchain technology, with dedicated panels on data privacy, digital identity, and decentralized finance. Experts from Microsoft, IBM, and Saudi Arabia’s National Cybersecurity Authority will provide insights into emerging threats and strategies for safeguarding digital assets.
Additionally, the conference will serve as a platform for universities, research institutions, and tech incubators to showcase cutting-edge research and development projects. Attendees will have the opportunity to engage with scientists and developers leading breakthroughs in artificial intelligence, biotechnology, and quantum computing.
The last edition was reportedly the world’s most attended technology conference, drawing over 215,000 visitors and driving Riyadh’s hotel occupancy rates to 99 percent.
With an agenda packed with industry-leading discussions, networking opportunities, and hands-on tech experiences, LEAP 2025 is poised to further cement Saudi Arabia’s position as a leading force in global technology.
Saudi e-commerce sales using Mada cards hit $53bn in 2024
Year-on-year growth of 25.82%, according to Saudi central bank data
Spending power, nation’s economic strength are ‘fueling market growth’
Updated 07 February 2025
Dayan Abou Tine
RIYADH: E-commerce sales using Mada cards in Saudi Arabia reached SR197.42 billion ($52.64 billion) in 2024, a year-on-year growth of 25.82 percent, according to data from the Kingdom’s central bank.
Figures released by the institution showed that in December, sales totaled SR19.37 billion, representing a 42.06 percent increase compared to the same month in the previous year.
These figures include payments for online shopping, in-app purchases, and e-wallet transactions, but exclude transactions using credit cards such as Visa and MasterCard.
Mada, the Kingdom’s national payment card system, supports both debit and prepaid services within its network. The cards utilize near-field communication technology for contactless payments, enabling secure transactions at both physical retailers and online.
Mohammed Dhedhi, partner in the consumer and retail practice team at Kearney Middle East and Africa, told Arab News: “The growing spending power in Saudi Arabia, driven by factors such as dual-income households and higher overall economic strength, is fueling market growth.”
He added: “Additionally, the proliferation of NFC-capable devices has significantly boosted the penetration of digital payment channels like Mada, further supporting the shift toward a more digital economy.”
In addition to the surge in sales, the number of e-commerce transactions also experienced a significant rise, increasing by 28.86 percent year-on-year to nearly 1.13 billion transactions in 2024.
December saw a 30.47 percent annual increase, reaching 105.73 million transactions.
According to Dhedhi: “Today, local Mada cards account for over 90 percent of cards issued in the country and over 95 percent of the total transactions made. One of the main reasons for Mada’s popularity is because of how convenient it is to use.”
He added that Mada is widely accepted both in-store and online across Saudi Arabia, providing secure transactions as it is operated by Saudi Payments, a subsidiary of the Saudi Central Bank.
The growing adoption of Mada aligns with the government’s push toward a cashless society, promoting the transition from cash to digital payments.
Dhedhi explained that the COVID-19 pandemic significantly accelerated e-commerce penetration in Saudi Arabia, driving faster digital adoption across various sectors.
This growth was further supported by increased investments from both regional and global players looking to expand their operations.
He noted that in 2022, noon.com opened a Customer Fulfillment Center in Riyadh to improve delivery speed and meet the growing demand from consumers.
Saudi Arabia’s growing spending power, supported by factors including dual-income households and a robust economy, continues to drive market expansion.
At the same time, the widespread adoption of NFC-enabled devices has propelled the use of digital payment solutions like Mada.
As a result, the Kingdom is witnessing a rapid shift toward a more digital economy, with seamless and secure transactions becoming an integral part of the evolving e-commerce landscape.
The rise in e-commerce activity aligns with Saudi Arabia’s goal to make digital transactions account for 80 percent of the retail sector by 2030, with 70 percent conducted online by the same year.
According to the International Trade Administration, the Saudi e-commerce market, valued at $5.15 billion in 2023, accounted for 6 percent of the Kingdom’s $92.6 billion retail market.
Dhedhi said: “To improve online shopping experiences, Saudi Arabia’s Ministry of Commerce has introduced reforms focusing on refunds, delivery options, and payment choices.”
He added: “These changes aim to address consumer concerns such as unclear warranties, limited delivery coverage, slow complaint resolutions, and delayed refunds. Retailers are now required to submit performance reports and conduct consumer awareness campaigns.”
According to Dhedhi, Saudi Arabia’s e-commerce market growth will be driven primarily by appliances and electronics, which will account for 23 percent of total growth, with a compound annual growth rate of 8 percent from 2024 to 2028.
The fashion sector is expected to contribute 18 percent, also growing at 8 percent CAGR, while health and beauty will make up 14 percent, expanding at a much faster 16 percent CAGR.
The dominance of electronics and appliances reflects a strong demand for advanced technology and gadgets, particularly among younger, tech-savvy consumers.
In addition, the rising popularity of beauty and home care products aligns with an increasing focus on self-care and wellness across the Kingdom.
Meanwhile, the food and beverage segment is projected to experience the highest growth rate at 25 percent CAGR, although its overall market size remains smaller compared to other leading categories, according to Dhedhi.
“The rise in food and beverage e-commerce reflects a growing demand for convenience. Quick commerce has been growing rapidly, and while it historically took players much longer to achieve profitability, the current focus on dark stores and improved unit economics is accelerating this process,” Dhedhi said.
He also noted that while this shift has accelerated growth in the sector, it has also intensified competition. This dynamic ultimately benefits market players in Saudi Arabia by fostering innovation and enhancing service quality.
According to the International Trade Administration, Saudi Arabia’s digital economy is expanding rapidly, driven by substantial government investments and widespread adoption of emerging technologies.
As of 2023, the Kingdom’s Information and Communications Technology sector was the largest and fastest-growing in the Middle East and North Africa region, valued at $40.94 billion and contributing 4.1 percent of gross domestic product, the report stated.
The Kingdom ranked second among G20 countries on the UN International Telecommunication Union’s ICT Development Index in 2023, highlighting its strong digital infrastructure.
Over the past six years, Saudi Arabia has invested $24.8 billion in this area, leading to a 99 percent internet penetration rate and mobile internet speeds of 215 megabits per second, nearly double the global average.
These advancements place the Kingdom among the top 10 countries globally for mobile internet speed, according to the ITA.
Saudi Arabia was an early adopter of 5G technology, with coverage reaching 77 percent of the country — significantly above the global average — and 94 percent in Riyadh, positioning it among the world’s leading cities for 5G accessibility.
This high-speed internet expansion is fueling growth in e-commerce, telecommunications, and digital services, the ITA added.
The number of e-commerce users is projected to reach 34.5 million by 2025, with penetration rising from 66.7 percent in 2023 to 74.7 percent by 2027, according to the report.
Digital payments are also surging, aligning with Vision 2030’s goal of a cashless society. Electronic payments in retail transactions surpassed 57 percent in 2021, exceeding the 55 percent target set by the Financial Sector Development Program.
This shift is expected to further accelerate e-commerce growth, attracting more investment in digital financial services.
Dhedhi said: “Millennials, who constitute around 50 percent of the population, are key drivers of e-commerce growth due to their digital fluency and tech-savviness.”
He added: “Expats, on the other hand, prioritize the delivery experience more than locals and show a strong preference for international brands or diverse product offerings, contributing to a broader assortment in the offerings.”
Dhedhi said quick commerce players are tapping into the demand for fast delivery, affordable subscriptions, and influencer partnerships to target younger consumers.
By offering low delivery costs, they are setting new convenience standards. Chinese e-commerce giants including Shein and Temu have successfully attracted Gen Z and millennials with trendy, affordable products, despite occasional compromises in product quality, he said.
Urbanization and rising female workforce participation are further fueling the shift to online retail, with families increasingly relying on e-commerce for groceries, fashion, and household items.
Dhedhi noted that these demographic shifts are broadening the customer base, diversifying consumer behavior, and fueling the expansion of Saudi Arabia’s e-commerce sector, which plays a pivotal role in the Kingdom’s economic transformation.
Oil Updates — crude set for 3rd straight weekly decline amid tariff concerns
Updated 07 February 2025
Reuters
LONDON: Oil prices rose on Friday after new sanctions were imposed on Iran’s crude exports but were on track for a third straight week of decline, hurt by US President Donald Trump’s renewed trade war on China and threats of tariffs on other countries.
Brent crude futures were up 51 cents, or 0.7 percent, at $74.80 a barrel by 3 p.m. Saudi time, but were poised to fall 2.6 percent this week. US West Texas Intermediate crude rose 48 cents, or also 0.7 percent, to $71.09 a barrel, down 2.1 percent on a weekly basis.
The US Treasury said on Thursday it was imposing new sanctions on a few individuals and tankers helping to ship millions of barrels of Iranian crude oil per year to China, in an incremental move to increase pressure on Tehran.
“Trump has talked about maximum pressure (on Iran). The market takes that quite seriously,” said Michael Haigh, global head of commodities research at Societe Generale. The French bank projects that Iranian oil exports are set to halve.
“The imposition of tariffs and the pauses should be bullish for the oil market because it adds uncertainty. But you haven’t seen this response because of demand concerns. Tariffs and tit for tat responses from nations, it hurts global GDP ... and oil demand,” Haigh added.
Trump had announced a 10 percent tariff on Chinese imports as part of a broad plan to improve the US trade balance, but suspended plans to impose steep tariffs on Mexico and Canada.
“Downside pressure has stemmed from the news flow around tariffs, with concerns over a potential trade war fueling fears of weakening oil demand,” analysts at BMI said in a note on Friday.
Oil prices settled lower on Thursday after Trump repeated a pledge to raise US oil production, unnerving traders a day after the country reported a much bigger-than-anticipated jump in crude stockpiles.
The benchmarks were also under pressure from swelling US crude inventories, which rose sharply last week as demand softened on ongoing refinery maintenance.
PIF’s SIRC, Germany’s Concord Blue to launch first phase of sewage to renewable hydrogen station
Both parties will offer innovative solutions that contribute to environmental sustainability and promote the circular carbon economy
Plan will see around 100 million tonnes of waste recycled annually
Updated 07 February 2025
REEM WALID
RIYADH: A new agreement between the Saudi Investment Recycling Co. and the German company Concord Blue will lead to the construction of a station in the Kingdom that converts sewage into renewable hydrogen.
The Public Investment Fund firm inked the memorandum of understanding with the engineering company for the first phase of the development, whereby the plant will use Concord Blue Reformer technology to develop sludge treatment projects resulting from sewage and other organic waste, according to a statement.
Concord Blue Reformer’s non-combustion reforming process uses the principles of staged reforming to efficiently and cleanly recycle waste into energy.
This falls in line with SIRC’s goal of actively leading the charge in implementing impactful waste reduction strategies, accelerating the widespread adoption of renewable energy solutions, and championing the principles of environmental justice.
It also aligns with the comprehensive plan announced by the Kingdom’s Ministry of Environment in January 2024, which targets recycling a significant portion — up to 95 percent — of the country’s waste.
“Under this memorandum, SIRC will provide sewage and agricultural waste as raw materials, while Concord Blue will convert this waste into renewable hydrogen, in addition to transferring knowledge in this field and training national cadres to build, operate and maintain facilities for converting waste into hydrogen,” said Faisal Al-Solami, executive vice president of finance and strategic planning at SIRC.
When fully implemented, the plan will see around 100 million tonnes of waste recycled annually, showcasing the nation’s commitment to sustainability.
Under the terms of the newly signed MoU, both parties will offer innovative solutions that contribute to environmental sustainability and promote the circular carbon economy by producing high-quality green hydrogen and manufacturing biochar and industrial-activated coal.
Al-Solami said signing the agreement is a key step toward achieving Vision 2030’s recycling and sustainability goals, as it promotes environmentally friendly energy solutions from waste, reduces emissions, and supports an eco-conscious economy.
This comes as the first phase of the project will achieve several goals, including reducing the volume of waste sent to landfills, enhancing hydrogen production on a large scale, and developing innovative solutions to reduce carbon emissions.
It will also support local manufacturing projects and contribute to achieving a zero-carbon future by producing clean fuel that supports the transition to a hydrogen economy in the industrial and transportation sectors.
