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Saudi Minister of Industry Visits Columbia University, Engages with Saudi and International Students

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visits Columbia University on Wednesday. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visits Columbia University on Wednesday. (SPA)
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Saudi Minister of Industry Visits Columbia University, Engages with Saudi and International Students

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visits Columbia University on Wednesday. (SPA)
Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visits Columbia University on Wednesday. (SPA)

Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef visited on Wednesday Columbia University in the United State, the oldest university in New York State.

He was briefed on the latest academic programs supporting the industrial and mining sectors and met with faculty members, as well as Saudi, American, and international students from around the world.

During an interactive discussion with academics and students, Alkhorayef discussed Saudi Arabia’s industrial and mining transformation journey, focusing on promising industrial sectors being developed and localized as part of the national industrial strategy.

He emphasized the goals of Vision 2030 to transform the Kingdom into a leading global industrial power by maximizing the economic contribution of the industrial and mining sectors, diversifying income sources, and increasing their contribution to the GDP.

Alkhorayef highlighted the importance of the scholarship program as a vital cultural bridge for fostering civilizational communication among nations.

He stressed that the Kingdom relies on and invests in its citizens to shape the future, citing the Custodian of the Two Holy Mosques' Scholarship Program and the Human Capacity Development Program, both aimed at developing national talents and equipping them with the skills needed to compete globally across various fields.

He noted that the industrial and mineral resources ecosystem is keen on engaging with scholarship students abroad, helping them explore future opportunities in the industrial and mining sectors through various programs and initiatives.

The visit to Columbia University is part of Alkhorayef's ongoing tour of the United States, which runs until September 28 and includes stops in New York, California, and Nevada. The tour aims to boost industrial and mining cooperation, attract quality investments to the Kingdom, and explore mutual opportunities in advanced industrial sectors.

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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)
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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.