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Funds, Financing Portfolios Allocate $1 Billion for Saudi Emerging Technologies

The second day of LEAP 2023 saw the launching of funds and programs to support the IT sector. (Asharq Al-Awsat)
The second day of LEAP 2023 saw the launching of funds and programs to support the IT sector. (Asharq Al-Awsat)
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Funds, Financing Portfolios Allocate $1 Billion for Saudi Emerging Technologies

The second day of LEAP 2023 saw the launching of funds and programs to support the IT sector. (Asharq Al-Awsat)
The second day of LEAP 2023 saw the launching of funds and programs to support the IT sector. (Asharq Al-Awsat)

Eight investment funds and programs allocated 3.7 billion riyals ($1 billion) to support Saudi Arabia’s IT sector.

On the sidelines of the LEAP 2023 conference in Riyadh, the Ministry of Communications and Information Technology unveiled on Tuesday investment funds to support the growth of startups and medium-sized companies, accelerate the electronic games industry, boost competition in the fields of research, development and innovation, and stimulate the ecosystem.

The conference saw the launching of STV’s first Shariah-compliant alternative financing fund, to enable the growth of technology companies, at a value of $150 million.

Similarly, IMPACT46 launched a $133 million fund, targeting tech startups in the Kingdom and the MENA region, while Merak Capital announced a $53 million Direct Lending Fund to support Saudi tech companies.

Shorooq Co. unveiled its second fund to invest in emerging companies in the Kingdom, in addition to launching another fund to accelerate electronic games worth $115 million.

Moreover, the Saudi Investment Bank (SAIB) announced the allocation of $40 million to launch an innovation incubator in the financial technology field and other fields to contribute to the growth of the financial sector.

Planetary Capital inaugurated the first Saudi-Canadian fund to invest in both local and global emerging space technology companies, at a value of $30 million, while Rakeezah holding launched a $25 million venture capital fund backed by a global accelerator in Riyadh.

Increased funding

In remarks at the opening of the second day of the LEAP 2023 conference, Eng. Haitham Al-Ohali, Deputy Minister of Communications and Information Technology, said: “We heard some international investors mention that the Crown Prince revealed an increase in financing growth in the Kingdom by 72 percent.”

He pointed to the alliances between Riyadh and Beijing in technology through startups and giant companies, with the aim to promote digital economic growth in the two countries, and to pump new global investments within the Kingdom.

Riyadh and Beijing

Major government institutions, companies, non-governmental organizations and academic institutions from Saudi Arabia and China launched the Saudi-China Entrepreneur Association (SCEA), on the sidelines of LEAP 2023.

The non-profit organization is supported by the Saudi Ministry of Communications and Information Technology and the Saudi Federation for Cybersecurity, Programming, and Drones. It will be operated by eWTP Arabia Capital.

It includes more than 100 founding members from institutions and companies, most notably the Saudi Telecom Company, Alibaba, Cloud, China Mobile and Tencent.

“In line with Saudi Arabia’s Vision 2030, SCEA will enable cross-border investments and valuable collaborations,” said Jerry Li, founder and managing partner of eWTPA.

For his part, Faisal Al-Khamisi, chairman of the Saudi Federation for Cybersecurity, Programming, and Drones, noted that China was a strategic partner for Saudi Arabia in terms of technology and innovation, stressing that the association would enhance mutual collaboration and provide the broader Saudi-China business community with a forum to share valuable experiences.

Support programs

The second day of the LEAP 2023 in Riyadh also saw the announcement of several support and financing programs.

Riyad Bank revealed financing for establishments operating in the communications and information technology sector at a value of one billion dollars.

Meanwhile, the Saudi National Program for the Development of the Communications and Information Technology Sector announced the launch of 6 new products that support and enable the system of digital entrepreneurship and technology companies in the Kingdom, in addition to attracting international technology companies, at a value of 1.1 billion riyals ($293 million).

Banque Saudi Fransi launched a financing portfolio worth one billion dollars to finance companies in the communications and IT sector.

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Business

Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman Reaffirm Commitment to Market Stability

FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman Reaffirm Commitment to Market Stability

FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: OPEC logo is seen in this illustration taken June 25, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman met virtually on September 6, 2026, to review global market conditions and outlook, SPA reported.

The seven participating countries decided to maintain September 2026 required production for October 2026 as detailed in the table below.

The seven countries reiterated their collective commitment to achieve full conformity with the Declaration of Cooperation.

The seven OPEC+ countries will continue to hold monthly meetings to review market conditions.

The next meeting will be held on October 4, 2026.

Business

South Korean Chips Head to Saudi Arabia: From Manufacturing to Computing

An AI chip with the South Korean flag (Reuters
An AI chip with the South Korean flag (Reuters
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South Korean Chips Head to Saudi Arabia: From Manufacturing to Computing

An AI chip with the South Korean flag (Reuters
An AI chip with the South Korean flag (Reuters

Chips are no longer merely electronic components hidden inside devices. They have become the foundation of the artificial intelligence economy, as global competition shifts from developing models to having the capacity to run them efficiently and at scale.

As demand for computing chips rises, the semiconductor industry is converging with energy, data centers, and digital infrastructure, creating a new map of technological power that extends beyond countries that manufacture chips to countries capable of hosting and operating the computing power they require.

In this race, Saudi Arabia is emerging as a growing destination for Asian chip and AI companies, driven by the availability of energy, the rapid expansion of data centers, and its ambition to build a sovereign AI ecosystem. South Korea, meanwhile, is moving to strengthen its position at the heart of the value chain by increasing government spending on chips, AI, and the infrastructure that supports both.

The decision by South Korean AI chipmaker Rebellions to establish its regional headquarters in Riyadh embodies this new intersection between those who make chips and those who have the capacity to run them. Its CEO, Sunghyun Park, told Asharq Al-Awsat that three main factors make Saudi Arabia an attractive destination for the company: high levels of energy availability, a commitment to developing AI infrastructure, and strong ambitions in sovereign AI.

Park added that the combination of these factors makes Riyadh a suitable location for Rebellions to expand its AI chip business.

The Korean company's move comes as Saudi Arabia works to expand its ability to accommodate growing demand for computing, alongside rising investment in data centers and AI projects.

Sunghyun Park, CEO of South Korean AI chipmaker Rebellions (Asharq Al-Awsat)

821 Trillion Won in Spending in 2027

South Korea proposed this week the largest government budget in its history, worth 821 trillion won ($596.92 billion) for 2027, an increase of 12.8 percent from the current year and the largest annual increase ever. A significant portion of the spending will be directed toward AI, semiconductors, and related infrastructure.

Seoul is betting on increased public spending to maintain its position in the semiconductor industry, one of the most important drivers of its economy, as global demand rises for chips used in AI applications.

The proposed budget includes 21.3 trillion won for industrial water systems, electricity grids, and logistics services needed to support the next generation of semiconductor infrastructure, along with 2.6 trillion won in a dedicated semiconductor budget.

South Korea is benefiting from the global surge in demand for high-bandwidth memory (HBM), which is used in AI systems, with Samsung Electronics and SK Hynix reporting strong profits driven by this demand.

"Sovereign AI" Connects Riyadh and Seoul

Park believes that the sovereign dimension of AI has become an important factor in countries' decisions about the technologies they use, particularly as some data and applications are tied to sensitive sectors. He said the need for AI technologies that can be managed locally is linked, among other things, to "national security," noting that sensitive information, such as nuclear energy or weapons programs, requires governments to control how AI is used, set its boundaries, and operate it entirely within the country.

This reflects one of the major trends in the AI market. Governments and companies are no longer focused solely on gaining access to advanced models. They are also concerned with where data is stored, where models are run, and who owns the infrastructure on which they depend.

Aramco and HUMAIN in the Chip Supply Chain

Rebellions already has an investment connection to Saudi Arabia. Park said Aramco invested in the company about two years ago, while Rebellions is in ongoing discussions with HUMAIN about strengthening supply chains for AI infrastructure technologies.

He said HUMAIN has become one of the most important organizations operating in AI in Saudi Arabia and globally, and that cooperation with the company could have a positive impact on the region's AI sector.

These moves come as Saudi Arabia continues to expand its digital infrastructure, including data centers. This provides companies specializing in chips and computing with a potential regional market that goes beyond simply selling components to participating in the construction of the AI ecosystem itself.

Competition Is Shifting From Chip Speed to Operating Cost

Rebellions does not believe that competition in the AI chip market will be decided solely by a chip's ability to process more tokens per second. Instead, it will increasingly come down to the long-term cost of running AI.

Park said the company is focused on developing technologies that deliver "higher AI performance at a lower economic cost," explaining that an important metric for customers is not simply the number of tokens that can be processed per second, but also "cost per token."

The company's model focuses heavily on inference rather than distributing its efforts equally between inference and model training.

Park explained that inference is gradually becoming commoditized, meaning companies and users will increasingly care about obtaining good results at a reasonable cost, regardless of the specific technology used behind the scenes.

Energy Becomes Part of the AI Equation

This factor is becoming particularly important as energy consumption associated with data centers rises. The cost of electricity and chip efficiency have become part of the economic calculation involved in expanding AI use.

This is where the calculations of Riyadh and Seoul meet from two different angles. South Korea is investing in chips, electricity grids, and the industrial infrastructure needed to maintain its position in the value chain. Saudi Arabia, meanwhile, is building the energy supply, infrastructure, and data centers needed to absorb the next wave of computing.

The AI race between countries, therefore, is no longer only about models and software. It is about who makes the chips, who owns the data centers, who can provide the energy, and who can deliver all of it at the lowest possible cost.

Business

Iraq Raises Oil Export Capacity to More Than 3 Million Barrels Per Day

FILE PHOTO: The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty/File Photo
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Iraq Raises Oil Export Capacity to More Than 3 Million Barrels Per Day

FILE PHOTO: The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty/File Photo
FILE PHOTO: The Zubair Oil Field in Basra, Iraq, April 6, 2026. REUTERS/Mohammed Aty/File Photo

Iraq has raised its oil export capacity to more than 3 million barrels per day, Iraq's oil minister said, according to state media on Saturday.

Iraq has been able to export 3 ⁠million bpd since ⁠the beginning of September, state media said.

Oil Minister Basim Mohammed said the government plans to increase capacity ⁠to 5 million bpd after the completion of strategic pipelines and export outlets through the Strait of Hormuz, according to state media.

Iraq's oil exports rose to around 2.34 million bpd in August, according ⁠to ⁠officials.

Industry sources and shipping data had indicated that September shipments were set to climb, as big profits and Iranian approval for its tankers to pass through the Strait of Hormuz have encouraged buyers.