عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Aramco Collaborates with China's CNBM in Advanced Materials, Industrial Development

At the signing ceremony, sitting front row, from left, CNBM General Manager Assistant Zhi Xiao and Aramco Senior Vice President of Engineering Services Khalid Al Qahtani. Standing, from left, CNBM Chairman Zhou Yuxian, Aramco President & CEO Amin H. Nasser, and Aramco Executive Vice President of Technical Services Wail Al Jaafari (Aramco)
At the signing ceremony, sitting front row, from left, CNBM General Manager Assistant Zhi Xiao and Aramco Senior Vice President of Engineering Services Khalid Al Qahtani. Standing, from left, CNBM Chairman Zhou Yuxian, Aramco President & CEO Amin H. Nasser, and Aramco Executive Vice President of Technical Services Wail Al Jaafari (Aramco)
TT
TT

Saudi Aramco Collaborates with China's CNBM in Advanced Materials, Industrial Development

At the signing ceremony, sitting front row, from left, CNBM General Manager Assistant Zhi Xiao and Aramco Senior Vice President of Engineering Services Khalid Al Qahtani. Standing, from left, CNBM Chairman Zhou Yuxian, Aramco President & CEO Amin H. Nasser, and Aramco Executive Vice President of Technical Services Wail Al Jaafari (Aramco)
At the signing ceremony, sitting front row, from left, CNBM General Manager Assistant Zhi Xiao and Aramco Senior Vice President of Engineering Services Khalid Al Qahtani. Standing, from left, CNBM Chairman Zhou Yuxian, Aramco President & CEO Amin H. Nasser, and Aramco Executive Vice President of Technical Services Wail Al Jaafari (Aramco)

Saudi Aramco signed on Tuesday a five-year cooperation framework agreement with the China National Building Material Group Company (CNBM) to explore new opportunities in advanced materials and industrial development.

The agreement identified several areas for collaboration, including the establishment of manufacturing facilities in the Kingdom to produce wind turbine blades, hydrogen storage tanks, lower-carbon building materials, and energy storage solutions, according to a joint statement seen by Asharq Al-Awsat.

Both parties will also join efforts to set up a new center for training, inspection, and accreditation, as well as a proposed joint technology development center and laboratory to promote innovation.

“By combining Aramco’s expertise in nonmetallic materials and CNBM’s industry know-how, we aim to identify groundbreaking advances and new business opportunities, as well as promote further development of manufacturing capabilities within the Kingdom of Saudi Arabia,” said Wail Al Jaafari, EVP of Technical Services at Aramco.

CNBM Chairman Zhou Yuxian said the collaboration with Aramco will allow the company to promote a low-carbon transition through the nonmetallic materials industry.

“By leveraging our work in low-carbon integrated solutions, CNBM aims to complement Aramco’s efforts to advance the materials transition,” he said.

“This agreement envisages a wide range of cooperation that has potential to positively contribute to low-carbon development, while supporting further strategic alignment between China and the Kingdom of Saudi Arabia,” he added.

This CFA builds on Aramco’s existing relationship with CNBM and follows the 2021 launch of the Nonmetallic Excellence and Innovation Center for Building Materials (NEXCEL), in Beijing, by Aramco and the China Building Materials Academy (CBMA), the science and technology branch of CNBM.

Most Viewed

 
 
Business

Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
TT
TT

Saudi Arabia's Digital Advertising Boom: Addressing Economic Leakage, Boosting Local Content

A digital advertising event recently held in Riyadh (Asharq Al-Awsat)
A digital advertising event recently held in Riyadh (Asharq Al-Awsat)

Saudi Arabia’s digital advertising sector is experiencing rapid growth, but a significant portion of its revenues is leaking to foreign platforms. To maximize the impact on the national economy, experts are calling for strategies to curb this outflow and redirect it to local channels.

The importance of retaining digital ad revenues lies in the substantial size of this market. It is estimated that approximately $1 billion in ad spent is lost annually to foreign platforms, representing a considerable loss to Saudi Arabia’s economy.

Dr. Ebada Al-Abbad, CEO of Marketing and Communications at Tadafuq, a Saudi digital advertising network, told Asharq Al-Awsat that the problem stems from the fact that although advertisers, products, and audiences are often local, the largest share of financial gains goes to foreign platforms. He estimated that 70-80% of the $1.5 billion spent on digital advertising in Saudi Arabia in 2022 went to global platforms such as Google and Facebook. This results in the national economy losing nearly $1 billion annually from this sector alone.

Al-Abbad noted that government agencies in Saudi Arabia also contribute to the outflow. He explained that public sector spending on digital advertising, intended to raise awareness among citizens and residents, frequently ends up on foreign platforms. Government spending makes up about 20-25% of the total digital ad market in the Kingdom, meaning hundreds of millions of riyals leave the country annually, weakening the local digital economy.

Al-Abbad argues that Saudi Arabia needs strong local digital ad networks to keep this revenue within the national economy. These networks would help create jobs, drive innovation, and promote cultural diversity in digital content. Developing local platforms would also enhance Saudi Arabia’s digital sovereignty by ensuring that data remains within the country and is not controlled by foreign entities.

Moreover, local networks would reduce dependence on international platforms, ensuring that the economic benefits of digital advertising remain in the Kingdom, he said, stressing that this would align with Saudi Arabia’s broader Vision 2030 goals, which emphasize building a robust, diversified economy driven by local industries and digital transformation.

Globally, the digital advertising sector is growing rapidly. In 2022, worldwide spending on digital ads reached $602 billion, and it is projected to hit $876 billion by 2026. In the Middle East and North Africa (MENA) region, the digital ad market grew to $5.9 billion in 2022, with Saudi Arabia’s market accounting for over $1.5 billion.

In other countries, the digital ad sector plays a crucial role in boosting national economies. For example, in the United States, the digital advertising industry contributed $460 billion to the GDP in 2021, about 2.1% of the total. In the UK, the sector accounted for 1.8% of GDP in 2022. This shows how important digital advertising can be in driving economic growth.

One of the key challenges facing Saudi Arabia’s digital ad sector is the dominance of global platforms like Google and Facebook, which control 60% of the global digital ad market, Al-Abbad told Asharq Al-Awsat. This dominance results in a significant outflow of revenue and allows these platforms to control digital data and content. He warned that this could undermine Saudi Arabia’s national sovereignty over its digital economy.

To counter this, he emphasized that Saudi Arabia needs to build competitive local networks that can retain a larger share of the market. This will not only keep more revenue in the country but also strengthen the Kingdom’s control over its digital data and content.