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)
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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.”



UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
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UK Suffers OECD's Biggest Growth Downgrade as Iran War Pushes Up Energy Costs

This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)
This overhead view shows buildings along the River Thames in London on March 25, 2026. (Photo by JUSTIN TALLIS / AFP)

Britain's economic ‌growth prospects this year received the sharpest downgrade of any major economy in the OECD's interim forecast update on Thursday following the US-Israeli war ​on Iran, while inflation is set to rise faster too.

The Paris-based international body cut its 2026 forecast for British economic growth by half a percentage point to 0.7%, compared with a 0.4 percentage point downgrade for the euro zone and a 0.3 percentage point upgrade for the United States.

"Planned fiscal tightening and higher energy prices ‌are anticipated to keep ‌growth subdued in the United ​Kingdom, ‌though the ⁠impact ​will be ⁠attenuated by lower policy rates next year," Reuters quoted the OECD as saying in its report.

Following are further highlights from the report and other context:

Britain's growth forecast for 2027 is unchanged at 1.3%.

Britain's inflation forecast for 2026 is revised up by 1.5 percentage points from December to 4.0%, the ⁠biggest upward revision of any large, advanced ‌economy.

UK inflation in 2027 ‌is forecast to be 2.6%, 0.5 percentage ​points higher than in ‌December and above the Bank of England's 2% target.

Poorer UK households spend more on gas and electricity than in other rich countries, though total energy spending makes up a smaller share of UK inflation than elsewhere.

The OECD expects the ‌BoE to keep interest rates unchanged this year then cut in Q1 2027 as inflation ⁠eases.

⁠Britain's Office for Budget Responsibility, in forecasts finalized just before the start of the conflict, predicted GDP growth of 1.1% this year and 1.6% in 2027.

The BoE this month forecast inflation would rise to 3.0-3.5% over the next couple of quarters.

Prime Minister Keir Starmer has made boosting growth and reducing the cost of living top goals for his government.

Finance minister Rachel Reeves said the forecasts showed the war in the Middle East ​was affecting Britain but ​she would still focus on "regional growth, embracing AI and innovation, and establishing a closer relationship with the EU."


Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Drops More than 1% as Markets Assess Mideast Ceasefire Prospects

FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and coins lie on the table at the Precious metal dealership Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices fell on Thursday, weighed down by increased expectations of US Federal Reserve rate hikes this year as elevated oil prices stoked inflation worries, with investors awaiting clarity on Middle East de-escalation efforts.

Spot gold fell 1.2% to $4,451.47 per ounce by 0811 GMT. US gold futures for April delivery lost 2.3% to $4,448.

"You're ‌seeing an ‌acceleration of the idea that... this war will ‌mean ⁠inflation and inflation ⁠will mean a response from central banks, which will mean higher interest rates," said Ilya Spivak, head of global macro at Tastylive.

Brent crude futures climbed back above $100 a barrel on concerns that protracted fighting in the Middle East will further disrupt energy flows.

Higher crude prices tend to fuel inflation, and while rising inflation typically boosts gold's appeal ⁠as a hedge, high interest rates weigh on ‌demand for the non-yielding asset.

Markets see ‌a 37% chance of a US rate hike by December this year ‌with almost no chance of a cut now, according to ‌CME Group's FedWatch Tool. Before the conflict, markets were expecting at least two rate cuts.

US President Donald Trump said Iran was desperate to make a deal to end nearly four weeks of fighting, contradicting the Iranian foreign ‌minister who said his country was reviewing a US proposal but had no intention of holding talks ⁠to wind down ⁠the conflict.

"In the next 24 to 48 hours, (gold prices) will just be about reacting to headlines about negotiations," said Kyle Rodda, a senior financial market analyst at Capital.com.

"The really big moves will happen probably at the start of next week when it becomes clearer whether the US launches a ground invasion in Iran over the weekend."

Trump has vowed to hit Iran harder if Tehran fails to accept that the country has been "defeated militarily", White House press secretary Karoline Leavitt said on Wednesday.

Spot silver fell 2.7% to $69.36 per ounce. Spot platinum was down 2.3% at $1,874.90, while palladium dropped 2.5% to $1,387.53.


Oil Climbs and Equities Sink amid Mixed Messages on 'Talks'

FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026.  REUTERS/Issei Kato/File Photo
FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo
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Oil Climbs and Equities Sink amid Mixed Messages on 'Talks'

FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026.  REUTERS/Issei Kato/File Photo
FILE PHOTO: An oil refinery in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo

Oil prices jumped and equities fell Thursday as investors tracked developments in the Middle East amid hopes that US and Iranian officials will bring an end to a conflict that has ramped up fears of an unprecedented global energy crisis.

Markets have been buoyed since late Monday after Donald Trump backed down on a threat to destroy Iran’s energy infrastructure and said the two sides were in peace talks.

But while crude prices are down from last week and the mood on trading floors has been better than most of March, uncertainty and the virtual closure of the Strait of Hormuz -- through which around 20 percent of oil and gas passes -- continue to cast a dark shadow.

Washington presented a 15-point plan to end the war, including Iran giving up its enriched uranium and opening up the waterway, while Tehran's state-run TV reported officials had put forward their own five conditions for hostilities to end.

Trump on Wednesday threatened to "unleash hell" if Iran did not strike a deal, but Foreign Minister Abbas Araghchi said his country does not intend to negotiate.

But the US president also said Iran was taking part in peace talks and the denials were because negotiators feared being killed by their own side.

"Pressure on energy prices, shipping flows and broader financial conditions remains one of the few meaningful sources of leverage (Iran) retains," said Saxo Markets' Charu Chanana.

"There is therefore little incentive to relinquish that leverage prematurely, particularly if market stress strengthens its negotiating position.

However, she added: "It would be imprudent to assume diplomacy is absent simply because it is not visible. In conflicts of this nature, public rhetoric and private negotiation often diverge materially.

"Markets understand this dynamic, and they also tend to inflect before the political endgame is formally in place."

With investors holding on to hope that a deal can be struck, oil prices have stabilized this week, with Brent just above $100 and WTI around $90.

Both contracts rallied Thursday.

Stocks in Wall Street and Europe rose but Asian markets struggled after a two-day rally.

Tokyo, Hong Kong, Shanghai, Seoul, Sydney, Taipei, Singapore, Manila, Bangkok and Jakarta fell along with London, Paris and Frankfurt.

City Index's Fiona Cincotta said for any recovery to gain traction, "investors will want to see clearer signs of de-escalation, including the reopening of the Strait of Hormuz".

Her remarks come after the head of the International Chamber of Commerce, John Denton, warned the conflict could cause the "worst industrial crisis" in decades.

"The head of the International Energy Agency has warned that the world is facing an energy crisis more severe than the oil shocks of the 1970s," he added.

"From a business perspective, we believe this could yet become the worst industrial crisis in living memory."

Meanwhile, the World Trade Organization said disruptions to fertilizer supplies posed a double threat to global food security through scarcity and high prices, with a third of the global fertilizer supply normally transiting the Strait of Hormuz.