PIF Governor: Saudi Arabia Seeks to Become Global Hub for AI

Yasir Al-Rumayyan said the FII focuses on several key sectors, primarily sustainability, education, healthcare, artificial intelligence (AI), and robotics. SPA
Yasir Al-Rumayyan said the FII focuses on several key sectors, primarily sustainability, education, healthcare, artificial intelligence (AI), and robotics. SPA
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PIF Governor: Saudi Arabia Seeks to Become Global Hub for AI

Yasir Al-Rumayyan said the FII focuses on several key sectors, primarily sustainability, education, healthcare, artificial intelligence (AI), and robotics. SPA
Yasir Al-Rumayyan said the FII focuses on several key sectors, primarily sustainability, education, healthcare, artificial intelligence (AI), and robotics. SPA

Public Investment Fund (PIF) Governor, Chairman of the Future Investment Initiative (FII) Institute, and Chairman of Saudi Aramco’s Board of Directors Yasir Al-Rumayyan said that the FII focuses on several key sectors, primarily sustainability, education, healthcare, artificial intelligence (AI), and robotics.

He said it has invested in several companies operating in these sectors and established partnerships with research, academic and consulting institutions to support these goals.

Delivering a speech at the FII PRIORITY summit in Miami, Al-Rumayyan explained that the initiative will expand its global presence in the coming period by organizing events in Brazil and Kenya to enhance links and investment opportunities with markets in Latin America and Africa and discuss issues such as environmental protection and the transition towards renewable energy.

According to the Saudi Press Agency, he also addressed the PIF’s strategy, saying that more than 70% of its investments are local and directed towards the Kingdom's economy, while the public share of international investments has declined to less than 25%.

Al-Rumayyan also explained that PIF investments mainly target new sectors under its goal to make a long-term impact by being the economic driver of the transformation journey within the Saudi Vision 2030, which is distinguished from other international strategic plans by its success in achieving many of its goals before their set timelines.

“The fund invests between $40 billion to $50 billion annually and this will continue until 2025, and we look at our investments in the Kingdom with regard to their impact on the gross domestic product, job creation, and local content increase, and we are looking forward to increase local revenues generated from investments as per the framework to create sustainable impact on the Saudi economy and realize the targets of the Saudi Vision 2030,” he said.

On the fund's international investments, Al-Rumyyan said that their value continues to rise in terms of volume despite a decline in their percentage compared to local investments, pointing out that investments in the US market amount to 40% of the fund's total international investments in the form of investments or purchases, which amounted to more than $100 billion between 2017 and the end of 2023.

The PIF governor stressed that Saudi Arabia is well positioned to be a major global hub for AI and related industries, explaining that it has many competitive advantages to achieve this goal, including its leadership in clean energy resources, political will, funding capabilities, and human competencies.

The Aramco chairman also discussed the priority that the company gives to sustainability issues, saying that it is the most sustainable of all oil producers in the world, with the amount of carbon produced per barrel of oil not exceeding 25% of what other companies produce. He also said that Aramco has 12 research-and-development centers around the world to work on clean energy technology.

Aramco and the PIF are interested in blue hydrogen, SPA quoted him as saying.

He added that the Kingdom aims to provide 15% of blue hydrogen production globally and it pays special attention to green hydrogen while having clean energy resources that contribute to hydrogen production.

“The price per kilowatt-hour of solar energy in the Kingdom does not exceed 2 cents, making it the lowest in the world and giving the Kingdom a key competitive advantage,” he said.



Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.