Google Pledges to Support Business Activities in Saudi Arabia

 The brand logo of Alphabet Inc's Google is seen outside its
office in Beijing. REUTERS/Thomas Peter
The brand logo of Alphabet Inc's Google is seen outside its office in Beijing. REUTERS/Thomas Peter
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Google Pledges to Support Business Activities in Saudi Arabia

 The brand logo of Alphabet Inc's Google is seen outside its
office in Beijing. REUTERS/Thomas Peter
The brand logo of Alphabet Inc's Google is seen outside its office in Beijing. REUTERS/Thomas Peter

The business sector has witnessed a challenging phase during the covid-19 pandemic, and many small businesses and individuals have been affected.

Google unveiled Wednesday an initiative to hasten the economic recovery of the MENA region through digital transformation. The Grow Stronger with Google program will offer tools, training and financial grants worth more than $13 million to empower local businesses and jobseekers, with a special focus in Saudi Arabia on supporting business activities in the fields of retail, tourism, and entrepreneurship.

According to the Arab Monetary fund, around six million jobs are at risk in the Arab world, and the most available vacancies in the Kingdom require applied digital skills.

As part of its regional program, Google pledges to help more than one million people and businesses in the MENA region to learn digital skills and grow their businesses by the end of 2021. The company will provide grants from Google.org, the company's philanthropic arm, and loans worth $4 million, as well as grants and advertising credits of more than $9 million for governments and businesses.

Asharq Al-Awsat attended a special digital meeting with Lino Kataruzzi, general manager of Google in MENA, in which he explained the reasons why Google launched this project, the targeted groups, and how digital opportunities can contribute to a stronger return of people, business activities, and societies in Saudi Arabia and the region.

He stressed that digital tools have become a mean of saving many people during the crisis, and that Google helps people acquire new skills, find jobs, and enhance the presence of commercial activities on the Internet, especially those working in the areas of retail and tourism, because they are most affected by the crisis.

He also stressed that Google is optimistic about the future of the region, and has great confidence that cooperation with local partners will accelerate the pace of economic recovery by taking advantage of digital transformation.

The "Go Strong with Google" program in Saudi Arabia includes 3 main areas, which are digital and cloud skills training, business guidance and direction, and digitization of local business activities.

As for the first area, Google will ink partnerships with local authorities, such as the Ministry of Communications and Information Technology (the Digital Giving Initiative), the Ministry of Tourism and Wadi Makkah, through which it will provide training on digital marketing to more than 50,000 students and commercial activities in the Kingdom, and will host digital training for technology companies.

As for the second area (mentoring and directing business activities), Google will launch the Google for Startups Accelerator program to support local entrepreneurs, so that the first group will include up to 15 startups from the region to participate in a 3-month program that provides guidance, direction and assistance from expert advisors. The company will also provide $1.1 million in grants from Google.org to Mercy Corps, the Arab Tourism Organization, and Youth Business International to direct business activities and entrepreneurs across the region.

The third area (digitizing local commercial activities in Saudi Arabia) includes the launch of the Market Finder service to help local businesses identify new markets and acquire global customers. It will also grant all retailers in Saudi Arabia, whether they are Google advertisers or not, the right to access the brand Google Shopping tab to list their products at no cost, which helps them communicate with more customers, in addition to listing 100,000 local businesses in Saudi Arabia on "My Business on Google" and providing the owners of these businesses with digital skills in partnership with Saudi Post.

The listing will also include 50,000 companies in the UAE in partnership with the Dubai Chamber of Commerce and Industry.

Google has trained 300,000 students, handicraft artists and commercial activities on digital marketing in the region in partnership with local authorities and institutions, such as the Ministry of Youth and Sports, the Egyptian Federation of Tourist Chambers, the Ministry of Communications and Information Technology (the Digital Giving Initiative), the Ministry of Tourism in Saudi Arabia, the Nama Foundation for the Advancement of Women, and the Mohammed bin Rashid Foundation for the Development of Small and Medium Enterprises in the UAE, in addition to supporting thousands of small businesses with limited resources by providing financial loans worth $3 million in cooperation with the Kiva Foundation, a digital platform to connect lenders and borrowers around the world.

In 2018, the company announced the launch of "Skills from Google," a training program on digital skills for Arabic speakers, from which about one million Arab youth have so far benefited.

You can visit the “Go big with Google” program at grow.google-intl-mena.



Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
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Samsung’s Preliminary Q4 Profit Falls Far Short of Estimates as Chip Issues Drag

Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)
Samsung Electronics’ booth is seen during Korea Electronics Show 2024 in Seoul, South Korea, October 23, 2024. (Reuters)

Samsung Electronics' preliminary fourth-quarter operating profit missed estimates by a large margin, with the South Korean tech giant hit hard by extra costs as it works towards providing high-end chips to Nvidia.

Its earnings were dented by rising research and development costs and the ramp-up of manufacturing capacity for advanced semiconductors, the company said in a statement. Slowing demand for conventional memory chips used in PCs and mobile phones also weighed on earnings, it added.

The world's largest memory chip, smartphone and TV maker expects to log an operating profit of 6.5 trillion won ($4.5 billion) for the three months ended Dec. 31, well below an LSEG SmartEstimate of 7.7 trillion won.

The expected profit is 131% higher than the same period a year earlier, but down 29% from a disappointing third quarter. Preliminary revenue came in at 75 trillion won, slightly lower than analysts' estimates.

Rival SK Hynix is Nvidia's main supplier of high-bandwidth memory (HBM) chips used in artificial intelligence graphics processing units (GPUs) whereas Samsung has struggled to meet Nvidia's requirements.

Nvidia CEO Jensen Huang told reporters in Las Vegas on Tuesday that Samsung has to "engineer a new design" to supply HBM chips to his company, adding that "they can do it and they are working very fast," Korea JoongAng Daily reported.

Samsung said at the time of its third-quarter earnings that it was making progress in supplying HBM chips to Nvidia but has not made any public updates since then.

Greg Noh, an analyst at Hyundai Motor Securities, said Samsung's profit was possibly eroded by one-off costs as well as disappointing chip and display earnings.

Samsung finished 3.4% higher with analysts attributing the gain to the sense that the company's woes had already been factored in and were unlikely to get worse.

"There are concerns about Samsung's major businesses continuing to lose competitiveness. But chip demand may have bottomed already," said Lee Min-hee, an analyst at BNK Investment & Securities, adding that smartphone demand in China may gradually improve.

Shares of Samsung, South Korea's biggest company by market value, slumped 32% last year, far more than a 10% decline for the wider market.

By contrast, SK Hynix is expected to post record earnings for the fourth quarter and its stock surged 23% last year.

Samsung will release detailed fourth-quarter results on Jan. 31.

RISING COMPETITION

Samsung said fourth-quarter earnings also fell for its division that designs and manufactures logic chips, hit by slower mobile phone demand, lower utilization rates at its factories and higher research and development costs.

The division may have widened losses to about $1.5 billion in the fourth quarter from about $960 million in the preceding quarter due to struggles to increase production yields, analysts said.

Earnings for its devices business, which includes mobile phones, TVs and household appliances, dropped as it has been some time since new mobile phone models were launched and because competition has increased, Samsung said.

Analysts said its mobile division earnings may have declined year on year due to lower sales for its premium foldable phones.

Slowing demand likely offset the positive impact of weakness in the local currency which boosts earnings from overseas.

The South Korean won dropped to its weakest level in 15 years in December after President Yoon Suk Yeol's martial law decree triggered political turmoil. It was also hurt by US President-elect Donald Trump's pledges of higher tariffs on imports.