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Establishment of AI Center Boosts Digital Economy in Saudi Arabia

Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
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Establishment of AI Center Boosts Digital Economy in Saudi Arabia

Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)
Saudi Arabia is taking several measures to keep pace with the developments of artificial intelligence (Asharq Al-Awsat)

In response to the surging demand for artificial intelligence, anticipated to play an ever more crucial role in propelling the future of the Saudi economy, the Saudi Cabinet made a decisive move to create an international center for research and ethics in this cutting-edge sector.

This strategic initiative aims to expedite the advancement of sophisticated technologies, bolstering the Saudi Kingdom’s position both regionally and globally.

The establishment of the new center followed the creation of the Saudi Data and Artificial Intelligence Authority (SDAIA) in 2019, reaffirming the nation’s commitment to embracing this technology while effectively addressing all potential risks in the future.

According to a report from global consultancy firm PwC, AI is set to contribute $135 billion to the Saudi economy in 2030, making the Kingdom the biggest beneficiary of technology in the Middle East.

As Saudi Arabia pushes the embracement of digitization and future technologies, the Kingdom will see AI’s contribution to the gross domestic product rise to 12.4% in 2030, PwC added.

In terms of the average annual growth rate in the contribution of AI by region, Saudi Arabia is projected to hold a share of 31.3% in the technology expansion between 2018 and 2030.

Saudi Arabia is leapfrogging in the advanced technology sector, aligning with the goals outlined in Vision 2030. The government has initiated various measures to ensure that the Kingdom provides a safe online environment.

According to experts interviewed by Asharq Al-Awsat, the establishment of the new center enhances the Kingdom’s proactive and influential leadership role in the rapidly expanding global industry.

It strengthens the digital economy and contributes to the advancement of research efforts, all while promoting responsible utilization of artificial intelligence.

Faisal Al-Qadi, the CEO of Al-Qadi Trading and Industry and an AI expert, affirmed that the establishment of the new international center underscores the Kingdom’s genuine interest in adopting and implementing AI technology and its applications, along with addressing its challenges.

It serves as a confirmation of the Kingdom’s proactive and influential leadership role in this industry, added Al-Qadi.

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Business

Saudi PIF Backs Multibillion-Dollar Projects to Boost Sustainability

A solar power project in Saudi Arabia (SPA)
A solar power project in Saudi Arabia (SPA)
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Saudi PIF Backs Multibillion-Dollar Projects to Boost Sustainability

A solar power project in Saudi Arabia (SPA)
A solar power project in Saudi Arabia (SPA)

Saudi Arabia’s Public Investment Fund has fully allocated the proceeds of its green bond issuance, directing $9 billion to eligible projects, in a move that highlights the sovereign wealth fund’s growing role in shaping a more sustainable future and delivering lasting positive impact worldwide.

According to a recent report issued by the Public Investment Fund, reviewed by Asharq Al-Awsat, the expected impact of the fund’s eligible green projects includes generating 427 megawatts of renewable energy, avoiding emissions equivalent to 5.1 million tons of carbon dioxide, and treating 4 million cubic meters of wastewater.

The Public Investment Fund aims to establish itself as an active participant in global debt markets, while also fostering the development of a dynamic domestic market. This would enable the fund to access short- or long-term liquidity through a diverse range of financing instruments.

Financing strategy

The fund’s capital markets program aims to further strengthen its financing strategy and execution capabilities, both at the level of the Saudi sovereign wealth fund and across its portfolio companies, while enabling deeper engagement with global and local debt markets.

The program will also support expanding the fund’s capacity to raise debt and deploy it as a source of investment financing, in line with its overall funding strategy. This approach is designed to instill greater discipline in cash flow management and enhance returns on equity for the fund and its portfolio companies.

The green bond issuance will provide the fund with access to a broader pool of investors who prioritize environmental, social, and governance considerations in their investment decisions. It will also allow investors to diversify their portfolios through green assets, a step expected to help accelerate the pace of green investment globally.

Climate change

The fund has taken concrete steps to advance governance and policy, focusing on sustainability, and is a founding member of the One Planet Sovereign Wealth Funds initiative. This international platform aims to accelerate the integration of climate change considerations into asset management decisions and investment opportunities.

As an investment vehicle, the Public Investment Fund operates through acquiring stakes in companies aligned with its mandate, including ACWA Power and Lucid.

It has also established the Saudi Investment Recycling Company, a leader in waste management and recycling, manages the National Energy Services Company, Tarshid, and supports the creation of a voluntary carbon market in the Middle East and North Africa.

These efforts aim to strengthen Saudi Arabia’s position as one of the world’s most energy-efficient countries.

The green bond issuance will finance tangible projects on the ground, helping to accelerate the green transition and advance the Kingdom’s core targets of achieving net zero emissions by 2060 and generating 50 percent of electricity consumption from renewable energy sources by 2030.

This forms a key pillar of the renewable energy program implemented by the fund, which involves developing 70 percent of renewable power generation capacity.

Business

Saudi E-Commerce Hits Record Monthly Sales over SAR30.7 Billion in October

A view of Riyadh, Saudi Arabia. (SPA file)
A view of Riyadh, Saudi Arabia. (SPA file)
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Saudi E-Commerce Hits Record Monthly Sales over SAR30.7 Billion in October

A view of Riyadh, Saudi Arabia. (SPA file)
A view of Riyadh, Saudi Arabia. (SPA file)

E-commerce sales in Saudi Arabia via "mada" cards soared to an all-time monthly high in October 2025, surpassing SAR30.7 billion.

The surge in sales represents a 68% year-on-year increase, totaling about SAR12.4 billion more than the SAR18.3 billion recorded in October 2024, according to the Saudi Central Bank (SAMA) statistical bulletin on Wednesday.

E-commerce sales for the third quarter (Q3) of 2025 hit SAR88.3 billion, up 15.2% from the previous quarter, representing an increase of about SAR11.6 billion over the SAR76.6 billion recorded in Q2.

On a monthly basis, e-commerce sales in October rose 6%, gaining approximately SAR1.6 billion over September’s total of SAR29.1 billion.

From January to October, "mada" data showed e-commerce sales grew 47.3%, rising by around SAR9.9 billion over the SAR20.9 billion recorded in January.

These figures cover transactions made via "mada" cards on e-commerce websites, apps, and digital wallets, and do not include credit-card payments.

Business

Jeddah's King Abdulaziz Airport Launches First Direct Flight to Moscow

The expansion supports Jeddah Airports Company’s goal of broadening travel options and increasing air traffic revenue, leveraging the Kingdom's strategic location. (SPA)
The expansion supports Jeddah Airports Company’s goal of broadening travel options and increasing air traffic revenue, leveraging the Kingdom's strategic location. (SPA)
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Jeddah's King Abdulaziz Airport Launches First Direct Flight to Moscow

The expansion supports Jeddah Airports Company’s goal of broadening travel options and increasing air traffic revenue, leveraging the Kingdom's strategic location. (SPA)
The expansion supports Jeddah Airports Company’s goal of broadening travel options and increasing air traffic revenue, leveraging the Kingdom's strategic location. (SPA)

Jeddah's King Abdulaziz International Airport (KAIA) celebrated the launch of its first direct flynas flight to Moscow, operating three weekly flights between Jeddah and Vnukovo International Airport.

This initiative, in partnership with the Saudi Tourism Authority and the Air Connectivity Program, boosts air links between Saudi Arabia and Russia.

It marks KAIA's third direct Russian destination, following Makhachkala and Mineralnye Vody, which were inaugurated earlier this month by Azimuth Airlines.

The expansion supports Jeddah Airports Company’s goal of broadening travel options and increasing air traffic revenue, leveraging the Kingdom's strategic location.