Google to Open Two New HQs in Saudi Arabia

Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
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Google to Open Two New HQs in Saudi Arabia

Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)
Managing Director for Google in the Middle East & North Africa Anthony Nakache at a conference in Riyadh on Tuesday. (Asharq Al-Awsat)

American multinational technology company Google is preparing for launching two new headquarter offices in the Kingdom of Saudi Arabia. The planned offices will open in the cities of Riyadh and al-Dammam. Google also is building a data partnership with Saudi oil giant, Aramco.

Google drove about SR12.2 billion ($3.25 billion) in economic activity in Saudi Arabia in 2021, with the Android Developer ecosystem supporting at least 29,000 jobs in the kingdom every year.

The search engine giant announced the figures in its latest impact report released on Tuesday. The report was based on public polling, economic modeling, and third-party data.

Besides, YouTube channels are making six figures or more in revenue are up by 20% year over year and the total number of developers making over SR37,500 ($10,000) per month or more on Play grew by 15%, said the Google Impact Report.

According to the report, 66% of people used Google Maps to find a local business and 52% of businesses reported an increase of customers coming from online search or search advertising in the last two years.

The paper also found that 67% of online businesses said that Google Workspace was essential in enabling remote working (Google workspace is a collection of cloud computing and collaboration tools like Google Drive, Gmail and Meet).

“It's great to see the positive impact Google products like Search, YouTube, Maps and Android have on the daily lives of Saudi people, local business owners, developers and content creators,” said Anthony Nakache, Managing Director for Google in the Middle East & North Africa.

“Saudi Arabia is young, smart and digital, and we're proud to be an engine of growth in the country and an enabler in its digital transformation journey,” he added.

“We're excited to see what great things people can do there given the right tools and skills and we are committed to doing more through programs and local partnerships,” he remarked.

“In the last couple of years, Covid-19 has helped accelerate some preexisting trends such as the rise of e-commerce, the shift towards remote working and the use of online tools to support lifelong learning,” said Jonathan Dupont, Partner at Public First.

“In our research, people and businesses across the Middle East told us how important Google’s tools and services had been in enabling them to adapt to these changes: helping small businesses start to sell online, supporting workers to collaborate better online and children to keep learning,” he added.

In October 2020, Google announced a $13 million fund to help one million people and businesses in the Middle East and North Africa learn advanced digital skills and grow their businesses by the end of 2021.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.