عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Launches $266 Mln Investment Fund for Semiconductor Development

CEO of Rapid Silicon Naveed Sherwani (Asharq Al-Awsat)
CEO of Rapid Silicon Naveed Sherwani (Asharq Al-Awsat)
TT
TT

Saudi Arabia Launches $266 Mln Investment Fund for Semiconductor Development

CEO of Rapid Silicon Naveed Sherwani (Asharq Al-Awsat)
CEO of Rapid Silicon Naveed Sherwani (Asharq Al-Awsat)

Saudi Arabia has launched a billion-riyal ($266.6 million) investment fund for the semiconductor industry, alongside a national center. This initiative aims to support the establishment of 50 design companies and train 5,000 engineers by 2030.
Announced during the “Semiconductor Forum 2024,” which was held on June 5-6, the National Semiconductor Hub aims to secure over 150 million riyals ($40 million) from the National Information Technology Development Program and attract 25 global experts through a special residency program.
With this initiative, Saudi Arabia aims to become a global center for semiconductor markets, leveraging its strategic location.
Naveed Sherwani, CEO of Rapid Silicon, highlighted to Asharq Al-Awsat the kingdom’s advantage in accessibility, allowing businesses to connect with countries like Taiwan and Korea, accessing diverse markets.
Sherwani stressed the importance of semiconductor design firms, essential for various sectors like smartphones, tablets, automobiles, healthcare, and education.
He emphasized semiconductors’ role in enhancing national sovereignty, stating that the hub’s launch aims to meet Saudi Arabia’s sovereignty needs, showcasing the Kingdom’s high competitiveness in this field.
As for the Semiconductor Forum 2024, officials stressed its importance in gathering decision-makers, industry leaders, experts, and researchers in semiconductor technologies.
It aligns with the Kingdom’s goals in digital economy, artificial intelligence, and technology localization.
Saeed Al-Shahri, Deputy President of King Abdulaziz City for Science and Technology (KACST) for the Energy and Industry sector, told Asharq Al-Awsat that the forum aims to bring together experts, scientists, and decision-makers to discuss and localize these technologies in the Kingdom.
Saudi Arabia aims to have 500,000 electric cars by 2030, with about 40% relying on electronic chips or semiconductors.
Al-Shahri mentioned that the Kingdom has targets in the realms of digital economy, artificial intelligence, Internet of Things, and smart cities, all requiring an electronic chip industry.

Most Viewed

 
 
Business

Lebanon's Bonds Soar as Traders Place Counterintuitive Bets

The Lebanese national flag flutters in Beirut, Lebanon, August 18, 2020. (Reuters)
The Lebanese national flag flutters in Beirut, Lebanon, August 18, 2020. (Reuters)
TT
TT

Lebanon's Bonds Soar as Traders Place Counterintuitive Bets

The Lebanese national flag flutters in Beirut, Lebanon, August 18, 2020. (Reuters)
The Lebanese national flag flutters in Beirut, Lebanon, August 18, 2020. (Reuters)

Israel's airstrikes in Lebanon are inflicting destruction that could set its economy back by years.

But the defaulted country's bonds have climbed to two-year highs, gaining a whopping 44% since late September, as traders snap them up for pennies on the dollar.

Investors reckon the weakening of Hezbollah could precipitate a shake-up of Lebanon's fractured political system and potentially an economic plan to pull the country out of default, according to Reuters.

"The reason bonds have rallied is that the market thinks that the Lebanese political class might finally be able to agree a political path forward and an economic reform plan without Hezbollah in the picture," said Anthony Symond at abrdn.

"This would pave the way for the Eurobonds to eventually be restructured."

The jump still leaves Lebanon's dollar bond maturing in 2025 trading at a paltry 8.5 cents on the dollar - a fraction of the 70-cent level at which bonds are considered distressed.

Lebanon tumbled into default in the spring of 2020 after the country's financial system plunged into a deep economic crisis in 2019. With an effectively non-functioning government wracked by discord and corruption, few expect a debt deal anytime soon.

"Lebanese bonds started getting bids after the death of Nasrallah," said Kaan Nazli, a portfolio manager with Neuberger Berman, referring to Hezbollah leader Sayyed Hassan Nasrallah, whose death was announced on Sept. 28.

"Lebanon was in the 'it could not get worse' category," said Nazli, adding that the latest events could spark change.

Bruno Gennari, emerging markets strategist with KNG Securities, said rumors that Washington could use Hezbollah setbacks to push Lebanon to appoint its first president in two years had given hope.

"Is all about Hezbollah getting weaker," he said.

S&P Global Ratings said last week Israel's military action in Lebanon "put severe pressure" on Lebanon's already battered economy, and would "further delay economic and financial reforms, and the longer-term recovery of fiscal and external accounts."

S&P has a selective default rating on Lebanon's foreign currency debt.

Given their incredibly low prices, any glimmers of good news could boost Lebanon's bonds again, Nazli said

"If you see any headline on a presidential election, or even just a schedule for one - that could be a sign that things are moving forward," he said.