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Strong fiscal frameworks position º£½ÇÖ±²¥ to weather oil price swings, says minister

 Saudi Minister of Economy and Planning Faisal Alibrahim speaks at a panel during the Qatar Economic Forum in Doha. Screenshot/Qatar Economic Forum
Saudi Minister of Economy and Planning Faisal Alibrahim speaks at a panel during the Qatar Economic Forum in Doha. Screenshot/Qatar Economic Forum
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Updated 20 May 2025

Strong fiscal frameworks position º£½ÇÖ±²¥ to weather oil price swings, says minister

Strong fiscal frameworks position º£½ÇÖ±²¥ to weather oil price swings, says minister
  • Minister of economy and planning said Kingdom has built resilient economic structures to adapt to multiple oil price scenarios
  • Faisal Alibrahim said the Saudi budgets are no longer driven by oil

RIYADH: º£½ÇÖ±²¥ is well-prepared to handle fluctuations in global oil prices, thanks to its strong fiscal planning frameworks, according to the Kingdom’s Minister of Economy and Planning, Faisal Alibrahim.

Speaking at the Qatar Economic Forum during a panel discussion titled “The Geoeconomics of Growth: Finance & Economy Minister Outlook,†Alibrahim said º£½ÇÖ±²¥ has built resilient economic structures designed to adapt to multiple oil price scenarios.

The comments come as oil-producing nations continue to navigate price volatility amid shifting global demand and energy transition efforts.

“We’re always ready for scenarios, multiple scenarios, and we have the buffers. We have the long-term fiscal planning and medium-term frameworks that help us adjust depending on what scenario actually plays out,†the minister said. 

The world’s largest oil exporter is accelerating its economic diversification under the Vision 2030 reform agenda. Non-oil exports surged to a record $137 billion in 2024 — a 113 percent increase since the initiative was launched in 2016.

According to data from the Ministry of Finance, non-oil revenues accounted for 43.1 percent of total government income in the first quarter of 2025, representing a 2.06 percent increase compared to the same period last year.

Alibrahim noted that the Saudi budgets are no longer driven by oil. “Today, they’re driven by our priorities,†he added. “On the energy markets and oil, we’ve always been solving for long-term market stability that guarantees that investments will continue to flow to provide the right kind of supply that the global economy needs, and of course, as part of that is OPEC+ discipline.â€Â 

The minister noted that Gulf Cooperation Council countries, including º£½ÇÖ±²¥, are prioritizing long-term growth over short-term gains. “We’re always thinking about not the next 12 months, but a longer-term horizon, and that’s what most of the GCC countries are doing as well,†he added.   

Alibrahim also underscored º£½ÇÖ±²¥â€™s commitment to Vision 2030 and beyond, stating that Gulf nations are undergoing similar transformations. “What we’re undertaking in Vision 2030 and beyond Vision 2030 is a long-term, big-picture plan that is all about restructuring the Saudi economy,†he said.   

Highlighting the region’s economic progress, the minister pointed out that non-oil economies in the GCC grew by 3.7 percent in 2024 — nearly double the global growth rate. “There’s an acknowledgement that we’ve been for a while operating below our potential,†he said, emphasizing the increasing opportunities from economic restructuring.   

On foreign investment, Alibrahim described it as a “long-term game,†with º£½ÇÖ±²¥ targeting FDI inflows worth 5.7 percent of the gross domestic product by 2030. The Kingdom has implemented over 900 reforms to improve its business environment, he noted. 

Alibrahim also referenced recent geopolitical developments, including US President Donald Trump’s recent visit to Riyadh — part of a broader push for regional dialogue.

“We saw President Trump in Riyadh last week. We saw the result of dialogue, what it led to, including lifting the sanctions on Syria,†he said, signaling growing momentum for economic reintegration. 

On May 13, Trump began his four-day trip to the Middle East, his first major international visit of his second term. His first stop was º£½ÇÖ±²¥, where he secured a $600 billion investment commitment from the Kingdom. During his speech at the Saudi-US Investment Forum, Trump announced the lifting of US sanctions on Syria following talks with Crown Prince Mohammed bin Salman. 

The discussion shifted to Syria’s role in regional stability, with Turkish Finance Minister Mehmet Simsek stating: “Having a stable, peaceful, and prospering Syria on its own is a huge gain for the region.†Qatar’s Finance Minister Ali bin Ahmed Al-Kuwari echoed this sentiment, emphasizing the importance of Syria’s economic recovery for regional prosperity.   

Aibrahim also addressed º£½ÇÖ±²¥â€™s international engagements, including recent diplomatic efforts with the US and China, stressing the need for stronger global economic ties. “It’s in the interest of both (the US and China) that we remain strong partners,†he said. 


º£½ÇÖ±²¥ scales AI ambitions amid infrastructure realities

º£½ÇÖ±²¥ scales AI ambitions amid infrastructure realities
Updated 7 min 44 sec ago

º£½ÇÖ±²¥ scales AI ambitions amid infrastructure realities

º£½ÇÖ±²¥ scales AI ambitions amid infrastructure realities
  • Kingdom balancing global collaboration with domestic capability building

RIYADH: As global powers accelerate artificial intelligence investments, º£½ÇÖ±²¥ is confronting a defining moment in realizing its digital transformation ambitions.

Through Vision 2030, the Kingdom has made foundational investments in sovereign cloud infrastructure, high-performance computing, and international partnerships, positioning itself as a regional AI frontrunner.

However, industry experts caution that translating these ambitions into nationwide impact requires addressing three core challenges: modernizing legacy hardware systems, creating unified data architectures, and cultivating specialized compute talent.

The central question remains: Does º£½ÇÖ±²¥ possess the infrastructure needed to deliver AI at visionary scale?

Fadi Kanafani, general manager for SoftServe in the Middle East, said the Kingdom’s progress is already tangible. “Saudi is beyond the announcement stage; now we have action on the ground,†he told Arab News.

Fadi Kanafani, general manager for SoftServe in the Middle East. (Supplied)

Kanafani cited Humain’s AI-driven public service automation and AdopTech’s industrial sandboxes for manufacturing innovation as examples of execution beyond strategy. He also noted Aramco Digital’s alliances with hardware pioneers such as Groq — known for ultra-low latency inference engines — and Cerebras, a leader in wafer-scale computing, as evidence of cutting-edge capacity being embedded directly into the national ecosystem.

Global cloud providers are amplifying this momentum through substantial infrastructure commitments. Oracle’s second Riyadh region enhances sovereign data capabilities for government entities, while Amazon Web Services’ upcoming 2026 regional hub marks one of the Middle East’s largest cloud investments, Kanafani said.

At the academic front, Google Cloud and Microsoft Azure have launched AI innovation labs at King Abdullah University of Science and Technology, while Salesforce’s decision to base its regional headquarters in Riyadh signals growing international confidence in the Kingdom’s digital roadmap.

Suhail Hasanain, NetApp’s senior director for the Middle East and Africa, echoed that alignment.

Suhail Hasanain, senior director for NetAppfor the Middle East and Africa. (Supplied)

“º£½ÇÖ±²¥ has made remarkable progress in establishing foundations for AI-driven transformation,†he said. “Vision 2030’s prioritization of data sovereignty and advanced compute resources embeds artificial intelligence at the heart of national development — from Neom’s cognitive city ambitions to the National Data Bank’s unified information architecture.â€

Legacy systems and talent gaps

Despite robust infrastructure growth, large-scale enterprise adoption still faces operational barriers. Outdated financial systems, fragmented electronic health records, and siloed industrial datasets continue to constrain AI’s full potential.

Kanafani pointed to these friction points: “Most organizations remain anchored to legacy systems fundamentally incompatible with AI’s data requirements. Critical information exists in disconnected silos — patient records isolated from diagnostic AI tools, equipment maintenance logs separated from supply chain optimization algorithms.â€

Regulatory complexity compounds the challenge. “Governance frameworks vary significantly across healthcare, financial services, and critical infrastructure sectors, creating compliance uncertainty during scaling,†Kanafani added.

Hasanain stressed the human capital dimension. “Beyond physical infrastructure, we confront a severe shortage of specialized talent — data engineers capable of curating trusted datasets, machine learning operations specialists to productionize models, and AI governance experts to ensure ethical deployment.â€

He outlined three pillars for closing these gaps: establishing benchmark datasets, building hybrid systems that balance performance with sovereignty, and developing comprehensive workforce pipelines to operationalize AI across sectors.

From pilots to real-world impact

Across energy, healthcare, and logistics, real-world applications are already demonstrating AI’s potential when aligned with national priorities.

In energy, Aramco uses predictive maintenance algorithms to anticipate equipment failures before they disrupt operations. In healthcare, institutions like King Faisal Specialist Hospital leverage computer vision tools for faster, more accurate medical imaging analysis. Meanwhile, Neom’s Oxagon industrial zone applies digital twin technology to simulate logistics before implementation.

NetApp underpins such innovations through adaptable infrastructure solutions. “We empower organizations to orchestrate AI workloads seamlessly across sovereign cloud environments like STC’s and global hyperscalers like Microsoft Azure,†Hasanain explained.

He added: “For a major Riyadh-based financial institution, we integrated transaction data across 200 branches into a unified real-time fraud detection platform — significantly enhancing security while reducing operational costs.â€

SoftServe, meanwhile, applies a co-creation model. “We partner deeply with Saudi organizations to build purpose-driven solutions,†Kanafani said.
“For a Tabuk agricultural enterprise, we developed a custom AI model that optimizes irrigation by synthesizing satellite imagery, soil moisture sensors, and weather pattern analysis – delivering measurable water conservation outcomes.â€

Kanafani emphasized that organizational culture must evolve alongside technology. Their approach embeds change management from the outset, ensuring readiness for transformation.

Balancing sovereignty and collaboration

The interplay between national priorities and international innovation continues to define º£½ÇÖ±²¥â€™s AI journey.
“Data sovereignty remains non-negotiable for sensitive applications in national security, central banking, and citizen services,†Hasanain said. “Yet strategic collaborations with global technology leaders accelerate capability development – such as deploying NVIDIA’s advanced DGX systems while simultaneously training Saudi engineers to manage them locally.â€

Kanafani pointed to hybrid models gaining traction: “Leading Saudi manufacturers increasingly adopt blended architectures — maintaining proprietary process data on localized secure servers while leveraging global cloud scalability for supply chain optimization and market intelligence applications. This harmonizes control with flexibility.â€

As º£½ÇÖ±²¥ develops national AI ethics guidelines, Kanafani underscored proactive design: “Responsible innovation requires embedding bias detection and algorithmic transparency mechanisms directly into AI systems during development — not attempting remediation after deployment reveals ethical shortcomings.â€

Building the AI workforce

The Kingdom’s Future Skills initiative aims to train 20,000 AI specialists by 2030 through academic partnerships and hands-on industry experience.

Hasanain noted the importance of integrating learning with real-world exposure. “Oracle’s developer academies provide vital theoretical foundations, but sustainable capability requires integrating graduates into real-world industry projects where they confront practical scaling challenges.â€

Still, both experts warn that success will hinge on disciplined execution. “Underestimating cybersecurity requirements or data governance complexity undermines even the most sophisticated AI initiatives,†Kanafani cautioned.

Launch of the Future Skills Initiative as part of the Saudi-British Strategic Partnership Council and coinciding with the Human Capability Initiative Conference last April. (SPA)

As the global race for AI infrastructure intensifies, º£½ÇÖ±²¥â€™s investments have positioned it to translate ambition into regional leadership. Yet, as Hasanain noted, sustaining momentum will require operational focus.
“Our trajectory is clear, but achieving scalable impact demands relentless focus on data accessibility and talent density — transforming pilot potential into nationwide transformation.â€

Kanafani concluded with a vision of distinction: "The Kingdom’s unique opportunity lies in synthesizing global technological excellence, local problem-solving ingenuity, and deeply rooted ethical traditions. This fusion could position º£½ÇÖ±²¥ as the world’s first values-led AI superpower — where technological leadership serves societal advancement.â€
 

 


Parsons wins $56m Diriyah Phase 2 infrastructure contract

Parsons wins $56m Diriyah Phase 2 infrastructure contract
Updated 30 October 2025

Parsons wins $56m Diriyah Phase 2 infrastructure contract

Parsons wins $56m Diriyah Phase 2 infrastructure contract

RIYADH: US-based Parsons Corp. has secured a SR210 million ($56 million) contract from Diriyah Co., backed by º£½ÇÖ±²¥â€™s Public Investment Fund, to support infrastructure development in Phase 2 of the Kingdom’s heritage-led giga-project. 

Under the five-year agreement, Parsons will oversee the design and delivery of neighborhood parks, open spaces, and more than 55 km of streetscape across Diriyah’s second development phase. The firm will also manage the design and construction supervision of streets, footpaths, civic buildings, and public realm facilities. 

The Diriyah project, located on the northwestern outskirts of Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan, as the Kingdom seeks to position itself as a global tourism hub by the end of the decade. 

Diriyah is expected to contribute approximately SR70 billion annually to the Kingdom’s gross domestic product, create nearly 180,000 jobs, and become home to an estimated 100,000 residents. 

Jerry Inzerillo, CEO of Diriyah Co., said: “We are delighted to be working with such a world-class firm as Parsons as we accelerate the development of Diriyah’s $63.2 billion development.†  

He added: “This contract will play an important role in ensuring we achieve our goal of delivering a human-centric walkable city for approximately 100,000 residents, a contemporary working environment for tens of thousands and a place to welcome nearly 50 million visits a year in the future.† 

Parsons first began working with the PIF in 2017 and has since contributed to several major Saudi projects, including NEOM’s The Line and Oxagon, Soudah Peaks, and Rua Al Madinah. 

“It is an honor to work with Diriyah Co. on creating this iconic mixed-use destination that celebrates º£½ÇÖ±²¥â€™s rich culture and heritage. This unique urban development program will use the latest technology and urban planning practices blended with the city’s traditional Najdi architecture design, which dates back 300 years,†said Pierre Santoni, president, infrastructure, Europe, Middle East and Africa at Parsons.  

He added: “Our team is committed to leveraging our nearly seven decades of experience in the Kingdom, combined with our expertise in innovation, to advance Diriyah Company’s important program goals.† 

In September, Diriyah Co. said it had awarded contracts worth SR18.75 billion in the first half of 2025 across 15 agreements, underscoring the rapid expansion of the project as it moves into large-scale implementation. 

Diriyah, home to the At-Turaif UNESCO World Heritage Site, is the historic birthplace of º£½ÇÖ±²¥ and the ancestral home of the Al Saud family. 

Diriyah Co. is developing a mixed-use urban district about 15 minutes from central Riyadh, blending traditional Najdi architecture with modern design. 

The first phase of the project will be fully walkable, offering spaces to live, work, shop, and dine in an environment that reflects the Kingdom’s heritage.


Saudi capital markets shine at FII9 with regulatory, investor, and tech focus

Saudi capital markets shine at FII9 with regulatory, investor, and tech focus
Updated 30 October 2025

Saudi capital markets shine at FII9 with regulatory, investor, and tech focus

Saudi capital markets shine at FII9 with regulatory, investor, and tech focus

JEDDAH: The balance of capital markets, investor confidence, and º£½ÇÖ±²¥â€™s market performance took center stage at the ninth Future Investment Initiative conference.

Speaking during the event, Khalid Al-Hussan, CEO of the Saudi Tadawul Group, said the group maintains a high level of professionalism and transparency as an institutional force in the Kingdom’s market, supported by both local and international investors and increased capital inflows, according to the Saudi Press Agency.

He highlighted the vast opportunities in Saudi capital markets, noting that the Kingdom hosts two markets with more than 380 listed companies, multi-billion-dollar investments, and several active financing platforms — placing º£½ÇÖ±²¥ among the world’s top 10 financial markets.

“Regarding the regulatory environment, Al-Hussan said it continues to evolve under Vision 2030, with efforts to broaden access to Saudi markets, deepen liquidity, and provide diverse investment alternatives,†SPA reported

The Tadawul CEO emphasized that expanding market accessibility remains a key pillar, adding that regulations are developing in response to growing demand and new capital inflows.

He revealed that investments in the Kingdom have exceeded $110 billion, with more than 4,400 new market participants. “These changes will enhance access for a broader base of investors over the medium and long term, driven by improved regulation and heightened investor interest in Saudi markets.â€

He also underlined the importance of technology and innovation for future growth, noting the growing role of data-driven innovations.

Technology, he said, has become a national priority, with efforts underway to modernize capital market infrastructure through digitalization, the integration of fintech firms, and the adoption of advanced data analytics platforms.

Meanwhile, Abdulmajeed Al-Haqbani, head of securities investments at the Public Investment Fund, said the Saudi market ranks first in the Arab world in terms of market capitalization and liquidity.

He pointed to significant legislative progress compared to previous years and the market’s ongoing commitment to innovation and the development of new financial products.

Al-Haqbani noted that the balance achieved in capital markets between regulators and international investor confidence is beginning to yield positive results, describing the PIF as a cornerstone in supporting the growth of º£½ÇÖ±²¥â€™s capital markets.

“He added that the Saudi economy remains strong and well-capitalized, with substantial financial leaps in recent years — total capital flows rose from SR1 trillion to SR2 trillion in 2024, while the number of listed companies grew from 199 to more than 260. The total market value increased by 3.5 percent in January 2024,†SPA reported, citing Al- Haqbani.

On consistent investment strategies, Al-Haqbani said they serve as a key asset, revealing that SR3 billion to SR4 billion has been allocated to systematic strategies, representing 9 percent of targets, with plans to reach 20 percent.

He noted that systematic strategies have grown by 8 percent compared to traditional approaches, underscoring the positive impact of artificial intelligence, data, and advanced technologies that are reshaping investor perceptions of regional and Saudi markets.


º£½ÇÖ±²¥ posts non-oil revenue growth in Q3

º£½ÇÖ±²¥ posts non-oil revenue growth in Q3
Updated 30 October 2025

º£½ÇÖ±²¥ posts non-oil revenue growth in Q3

º£½ÇÖ±²¥ posts non-oil revenue growth in Q3

RIYADH: Non-oil revenues in º£½ÇÖ±²¥ rose 1 percent year on year in the third quarter of 2025 to SR119.1 billion ($31.76 billion), according to the Ministry of Finance. 

The government’s budget performance report for the three months to the end of September also revealed a budget deficit of SR88.5 billion,

Capital expenditures reached SR49.9 billion, up 4 percent compared to the same period of 2024, while overall revenues declined 13 percent year on year to SR269.9 billion. 

Oil revenues fell sharply by 21 percent year on year to SR150.8 billion in the third quarter. This decline significantly impacted total revenue performance, which dropped to SR269.9 billion during the period. 

Total expenditures rose 6 percent to SR358.4 billion, driven in part by increased capital outlays and ongoing public sector commitments. This spending contributed to a quarterly budget deficit of SR88.5 billion. 

Cumulatively, non-oil revenues for the first nine months of 2025 increased 3 percent to SR382.7 billion, reflecting the government’s continued push toward diversifying its fiscal base under Vision 2030. 


Goldman Sachs in ‘productive talks’ with Saudi PIF, says executive 

Goldman Sachs in ‘productive talks’ with Saudi PIF, says executive 
Updated 30 October 2025

Goldman Sachs in ‘productive talks’ with Saudi PIF, says executive 

Goldman Sachs in ‘productive talks’ with Saudi PIF, says executive 

RIYADH: Goldman Sachs Asset Management is engaged in “productive†talks with º£½ÇÖ±²¥â€™s sovereign wealth fund, according to a top executive. 

In an interview with Asharq Bloomberg on the sidelines of the Future Investment Initiative 9, James Reynolds, the global co-head of Goldman Sachs Asset Management, outlined the firm’s strategic approach to partnerships in the region, emphasizing the importance of a measured, long-term perspective.  

Reynolds confirmed that the firm is in “productive discussions†with the Public Investment Fund and other key regional companies. He stressed that establishing a local team on the ground is considered “crucial†for building successful partnerships. 

“A successful partnership requires a long-term perspective and patience,†Reynolds said. “We often advise our investors that we must ‘walk before we run.’†

He concluded that Goldman Sachs brings “significant capital, expertise, and experience — assets that are proving highly valuable in our ongoing negotiations.â€