SAP to Asharq Al-Awsat: Saudi Arabia Is Now Home to One of Our Largest Global Investments

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
TT

SAP to Asharq Al-Awsat: Saudi Arabia Is Now Home to One of Our Largest Global Investments

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)
SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. (SAP)

Saudi Arabia is accelerating AI adoption across various sectors, enabling businesses to harness data-driven insights, enhance efficiency, and scale operations with agility. At the LEAP 2025 conference, which concluded in Riyadh on Wednesday, SAP, the global leader in enterprise software, reaffirmed its long-term commitment to the Kingdom.

In an exclusive interview at the conference, Ahmed Jaber Al-Faifi, Senior Vice President for SAP in the North Middle East and Africa, highlighted the company’s significant investments in cloud infrastructure, AI-powered business solutions, and workforce development in Saudi Arabia.

Speaking to Asharq Al-Awsat, he stated: “AI is not just another tool for improving efficiency; it is a revolution that will redefine industries. Just as the internet transformed business operations, AI is set to become an essential component of every organization’s strategy.” He further warned: “Companies that fail to adopt and scale AI will become irrelevant within the next five years.”

SAP’s commitment to Saudi Arabia dates back to 2012, when the company invested $500 million to establish a robust enterprise technology ecosystem in the region. Over the years, this investment has focused on two key areas. The first is building a strong local partner network, with SAP working alongside more than 100 Saudi partners to expand its reach and provide tailored solutions for local businesses.

The second focus has been talent development. SAP has provided over 400,000 training days for students, partnered with 33 universities, and launched a free two-year diploma program to equip Saudi professionals with the skills needed to succeed in the digital economy.

Al-Faifi emphasized: “Talent development is critical to digital transformation. We are not just bringing technology to Saudi Arabia; we are building the skills and expertise necessary to support and scale these innovations over the long term.”

One of the most defining aspects of Saudi Arabia’s digital transformation is the rapid shift to cloud computing. As companies increasingly migrate their operations to the cloud, SAP has been at the forefront of facilitating this transition. In Saudi Arabia alone, 75% of SAP customers have already moved to the cloud, and this figure is projected to reach 95% by next year.

Al-Faifi explained: “Saudi Arabia has embraced a cloud-first strategy at a pace faster than most markets. Through our data centers in Riyadh, SAP ensures that critical business data remains within the Kingdom while providing enterprise-grade security, scalability, and AI-driven automation.”

Despite the rapid adoption of AI and cloud technologies, Saudi businesses face three major challenges in scaling these innovations, according to Al-Faifi. The first challenge is legacy system migration, as many organizations still rely on outdated infrastructure that must be modernized before they can fully leverage AI and cloud solutions.

The second challenge is data quality and management, since AI-powered decision-making depends on clean, well-organized, and high-quality data, which many businesses struggle to maintain. The third and most pressing challenge is the talent shortage, with demand for AI and cloud computing experts far exceeding the available talent pool, leading to fierce competition for skilled professionals.

“Migrating to the cloud is not just about transferring data; it requires a fundamental shift in how organizations manage, analyze, and secure their information. AI can only deliver value if the underlying data is clean and structured,” Al-Faifi said.

Recognizing that talent is the key to unlocking AI’s full potential, SAP has launched exclusive training programs in Saudi Arabia, including the SAP Engineering Academy—the only one of its kind outside the United States. The academy has already trained over 600 Saudi professionals, including talent from the Ministry of Interior and Aramco.

Beyond technical training, SAP is also focused on executive AI education, helping CEOs, CFOs, and other decision-makers understand how to integrate AI into their business strategies. The company has established partnerships with Saudi universities to provide hands-on experience with SAP’s latest technologies. Additionally, SAP is launching AI literacy programs for organizations to ensure that businesses maximize AI-driven efficiencies and data-driven decision-making.

Al-Faifi noted: “Forty percent of companies that have implemented AI solutions have reported a clear return on investment, while another 40% are in the process of refining their AI use cases. AI is rapidly transitioning from an experimental technology to a core business function.”

SAP’s Business Network, one of the world’s largest B2B trading platforms, was previously hosted in the United States. However, with the rapid digital expansion in Saudi Arabia, SAP recognized the need for a localized version of the platform to comply with Saudi data residency regulations.

Today, the SAP Business Network operates at full capacity from Riyadh, ensuring that all transactions, procurement activities, and supply chain data remain within the Kingdom’s regulatory framework. Al-Faifi highlighted the network’s economic impact, stating: “In 2023 alone, SAP Business Network facilitated $550 billion in transactions—equivalent to 5% of Saudi Arabia’s GDP. This demonstrates the scale at which Saudi businesses rely on SAP’s solutions.”

The network now includes 156,000 local Saudi suppliers, enabling businesses to source from domestic partners, reduce dependency on international procurement, and strengthen national supply chains.

Discussing this transformation, Al-Faifi said: “With Saudi Arabia’s Vision 2030 mega-projects, the need for a localized business network became clear. The SAP Business Network in Riyadh enables Saudi companies to trade more efficiently while ensuring compliance with local regulations.”

With Saudi Arabia preparing to host Expo 2030 and the 2034 FIFA World Cup, the Kingdom is gearing up for massive technological advancements in infrastructure, smart city planning, and event management. SAP has previously deployed its enterprise solutions at Expo 2020 Dubai, where it helped manage logistics, ticketing, and crowd control. Al-Faifi revealed that SAP is currently in discussions with Saudi authorities to implement similar AI-driven solutions for upcoming mega-events.

From AI-powered crowd management to real-time logistics optimization, SAP’s solutions will play a pivotal role in ensuring smooth operations for large-scale events. The company is particularly focused on intelligent ticketing platforms, smart transportation systems, and digital security solutions, ensuring seamless experiences for millions of expected visitors.

Beyond the events sector, SAP is actively collaborating with major Saudi entities such as Aramco, NEOM, and the Red Sea Project to integrate AI, cloud computing, and business intelligence into some of the Kingdom’s most ambitious development projects.

Al-Fafi stressed: “Saudi Arabia is now home to one of SAP’s largest global investments. Our goal is to empower the Kingdom with AI-driven solutions, ensuring that businesses and government entities have the tools to innovate, scale, and thrive in the digital economy.”



Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program
TT

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air Launches ‘Employment First’ Overseas Aviation Training Scholarship Program

Riyadh Air has announced its ‘Employment-First’ Overseas Scholarship Program, which aims to launch several scholarship tracks, starting with two specialized paths for engineers in Australia, followed by a pilot training program in the United States.

The initiative falls under ‘Promising Path’, one of the tracks within the Custodian of the Two Holy Mosques Scholarship Program, in collaboration with the Ministry of Education, the Ministry of Transport and Logistic Services, and the General Authority of Civil Aviation (GACA).

This strategic step aims to build national competencies and train a new generation of specialists in the aviation sector, SPA reported.

According to a recent press release from Riyadh Air, the program will introduce several global training pathways, with the initial phase focusing on sending scholarship students to Australia to study towards Bachelor’s degrees in Aircraft Maintenance Engineering, covering both Mechanical Engineering and Avionics (Electronics). Next month, Riyadh Air will launch a Commercial Aviation training program in the United States.

In line with Riyadh Air’s commitment to supporting students' career progression, participants will be employed before commencing their scholarships. This ensures that their years of experience are registered with the General Organization for Social Insurance, enhancing their professional readiness from day one.

The program's launch is part of Riyadh Air’s continuous efforts to empower national talent and provide the Kingdom’s young and vibrant workforce with essential skills and knowledge, representing an even greater long-term investment in the future of the Kingdom's aviation industry.

Vice President of Talent Acquisition and Business Partners at Riyadh Air Nahar Aljahani stated: "The 'Employment-First' Scholarship Program is a part of our commitment to developing national human capital and enabling Saudi youth - both men and women - to access world-class education.

Its impact will reflect positively on the development of the aviation sector in the Kingdom, contributing to the company's goal of creating over 200,000 direct and indirect jobs."

With these programs, Riyadh Air continues to play a part in building a promising future for Saudi citizens and enhancing the competitiveness of our graduates in the global aviation industry.


Japan PM Reassures Markets with Fiscal Discipline in Next Year’s Budget

Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
TT

Japan PM Reassures Markets with Fiscal Discipline in Next Year’s Budget

Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)
Japan's Prime Minister Sanae Takaichi delivers a speech at the 14th Council Meeting of the Japan Business Federation, or Keidanren, in Tokyo on December 25, 2025. (AFP)

Japanese Prime Minister Sanae Takaichi sought on Thursday to ease market concerns over her expansionary fiscal policy, saying the government's draft budget maintains discipline by limiting reliance on debt.

There has been growing investor unease about fiscal expansion under Takaichi's administration, which has driven super-long government bond yields to record highs and weighed on the yen.

The budget for the year starting in April, to be finalized on Friday and submitted to parliament early in 2026, ‌will total 122.3 trillion ‌yen ($785.4 billion), Takaichi told ruling coalition executives.

The huge ‌spending ⁠will come ‌on top of a 21.3 trillion-yen stimulus package, compiled in November and funded by a supplementary budget for the current fiscal year, that focused on cushioning the blow to households from rising living costs.

Despite the record size, new government bond issuance for the next fiscal year will be capped at 29.6 trillion yen, staying below 30 trillion yen for a second straight year, ⁠she said.

The reliance on debt will fall to 24.2% from 24.9% in the initial fiscal 2025 ‌budget, which dipped below 30% for the ‍first time in 27 years, she said. ‍The 24.2% debt dependence ratio would be the lowest since 1998.

"We ‍believe this draft budget strikes a balance between fiscal discipline and achieving a strong economy while ensuring fiscal sustainability," Takaichi said.

In a separate speech at Japanese business lobby Keidanren, Takaichi said that her "responsible, proactive" fiscal policy means strategic spending with a long-term perspective.

"It does not mean expanding expenditures indiscriminately based solely on scale," she said.

In a report to clients, Yusuke Matsuo, ⁠Mizuho Securities' senior market economist, said Takaichi would still need to promote proactive fiscal spending to avoid alienating her political base. He added that financial markets could be reassured if the government sticks to a less aggressive stance on spending.

Signaling a shift in the government's reflationary policy push, private-sector members of a government panel on Thursday called on the government to clearly show the public how the debt-to-gross domestic product ratio can be steadily reduced under Takaichi's government.

The four private-sector members include former Bank of Japan Deputy Governor Masazumi Wakatabe and economist Toshihiro Nagahama - known as reflationist aides of Takaichi.

Their proposals were discussed at ‌the Council on Economic and Fiscal Policy (CEFP), which oversees Japan's fiscal blueprint and long-term economic policies.


Asian Shares are Mixed after US Stocks Drift to More Records

Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
TT

Asian Shares are Mixed after US Stocks Drift to More Records

Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)
Currency dealers monitor exchange rates as a screen (R) shows South Korea's benchmark stock index in a foreign exchange dealing room at the Hana Bank headquarters in Seoul on November 5, 2025. (Photo by Jung Yeon-je / AFP)

Asian shares were mixed Thursday in thin holiday trading, with most markets in the region and elsewhere closed for Christmas.

In Tokyo, the Nikkei 225 edged 0.1% higher to 50,407.79. It has gained nearly 30% this year.

The dollar slipped to 155.85 Japanese yen from 155.94 yen. The euro climbed to $1.1786 from $1.1780.

Markets in mainland China advanced, with the Shanghai Composite index up 0.5% at 3,959.62. Hong Kong's exchange was closed, The Associated Press said.

Investors were encouraged by a statement by the People’s Bank of China, China’s central bank, promising to ensure adequate money supply to support financing, economic growth and inflation targets. Earlier in the week, the PBOC had opted to keep its key short-term lending rates unchanged.

Shares fell in Thailand and Indonesia.

On Wednesday, the S&P 500 index rose 0.3% to 6,932.05 and the Dow Jones Industrial Average added 0.6% to close at 48,731.16. The Nasdaq composite added 0.2% to 23,613.31

Trading was extremely light as markets closed early for Christmas Eve and will be closed for Christmas on Thursday. US markets will reopen for a full day of trading on Friday, though volumes will likely remain light this week with most investors having closed out their positions for the year.

The S&P 500 is up more than 17% this year, as investors have embraced the deregulatory policies of the Trump administration and been optimistic about the future of artificial intelligence in helping boost profits for not only technology companies but also for Corporate America.

Much of the focus for investors for the next few weeks will be on where the US economy is heading and where the Federal Reserve will move interest rates. Investors are betting the Fed will hold steady on interest rates at its January meeting.

The US economy grew at a surprisingly strong 4.3% annual rate in the third quarter, the most rapid expansion in two years, driven by consumers who continue to spend despite strong inflation. There have also been recent reports showing shaky confidence among consumers worried about high prices. The labor market has been slowing and retail sales have weakened.

The number of Americans applying for unemployment benefits fell last week and remain at historically healthy levels despite some signs that the labor market is weakening.

US applications for jobless claims for the week ending Dec. 20 fell by 10,000 to 214,000 from the previous week’s 224,000, the Labor Department reported Wednesday. That’s below the 232,000 new applications forecast of analysts surveyed by the data firm FactSet.

Dynavax Technologies soared 38.2% after Sanofi said it was acquiring the California-based vaccine maker in a deal worth $2.2 billion. The French drugmaker will add Dynavax’s hepatitis B vaccines to its portfolio, as well as a shingles vaccine that is still in development.

Novo Nordisk's shares rose 1.8% after the weight-loss drug company got approval from US regulators for a pill version of its blockbuster drug Wegovy. However, Novo Nordisk shares are still down almost 40% this year as the company has faced increased competition for weight-loss medications, particularly from Eli Lilly. Shares of Eli Lilly are up 40% this year.

US crude oil closed at $58.35 a barrel and Brent crude finished at $61.80 a barrel.