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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

GASTAT: Saudi Consumer Inflation Eased to 1.7% in February

Shoppers are seen at a supermarket in Saudi Arabia. SPA
Shoppers are seen at a supermarket in Saudi Arabia. SPA
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GASTAT: Saudi Consumer Inflation Eased to 1.7% in February

Shoppers are seen at a supermarket in Saudi Arabia. SPA
Shoppers are seen at a supermarket in Saudi Arabia. SPA

Saudi Arabia’s annual inflation rate edged down to 1.7 percent in February, the lowest level since January 2025, according to data from the General Authority for Statistics (GASTAT).

The consumer price index eased from 1.8 percent in January to 1.7 percent, GASTAT said Sunday.

The data further showed that housing, water, electricity, gas, and other fuels rose 4.1 percent in February 2026, mainly driven by a 5.1 percent increase in actual housing rents.

Transport prices also climbed 1.4 percent, supported by a 5.6 percent rise in passenger transport services, while restaurant and accommodation services increased 1.9 percent due to higher accommodation costs.

Personal care, social protection and miscellaneous goods and services surged 8.2 percent, largely reflecting a jump in other personal effects, particularly jewelry and watch prices, which rose 29 percent.

According to GASTAT, prices in recreation, sport and culture climbed 1.8 percent, while education services increased 1.4 percent. As for information and communications prices, they edged up 1.1 percent.

Data showed that prices in the insurance and financial services category rose 1 percent.

As for furnishings, household equipment and routine maintenance, prices declined 0.9 percent, while prices for food and beverages, as well as clothing and footwear, remained largely stable during the period.

GASTAT said that on a monthly basis, the Consumer Price Index last month recorded relative stability compared to January 2026.

Business

Oil Hovers around $100, Stocks Mixed as Iran War Rages

An oil pump is pictured at an obsolete oilfield, with wind turbines in the background, in Sargentes de la Lora on March 13, 2026, near Burgos in northern Spain, where oil first flowed in Spain in 1964. (Photo by CESAR MANSO / AFP)
An oil pump is pictured at an obsolete oilfield, with wind turbines in the background, in Sargentes de la Lora on March 13, 2026, near Burgos in northern Spain, where oil first flowed in Spain in 1964. (Photo by CESAR MANSO / AFP)
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Oil Hovers around $100, Stocks Mixed as Iran War Rages

An oil pump is pictured at an obsolete oilfield, with wind turbines in the background, in Sargentes de la Lora on March 13, 2026, near Burgos in northern Spain, where oil first flowed in Spain in 1964. (Photo by CESAR MANSO / AFP)
An oil pump is pictured at an obsolete oilfield, with wind turbines in the background, in Sargentes de la Lora on March 13, 2026, near Burgos in northern Spain, where oil first flowed in Spain in 1964. (Photo by CESAR MANSO / AFP)

Oil prices hovered around $100 a barrel Monday and stocks fluctuated as the Iran war moved into a third week with both sides showing no sign of backing down and diplomats trying to ensure safe passage for tankers through the crucial Strait of Hormuz.

Crude shot up in the opening minutes after the US president said at the weekend that forces struck military targets on Kharg Island, a scrubby stretch of land in the Gulf that handles almost all of Iran's oil exports.

He also warned attacks could expand to energy infrastructure if the Iranian republic interferes with transit through Hormuz, which has been effectively closed since the US-Israel operations began on February 28.

Iran's Fars news agency reported soon after that no oil infrastructure was damaged in strikes.

Trump urged other countries to send warships to keep the waterway open but offered no specifics or commitments from the US side, saying he hoped China, France, Japan, South Korea and the UK would take part.

He later wrote Saturday in a Truth Social post: "The Countries of the World that receive Oil through the Hormuz Strait must take care of that passage, and we will help -- A LOT!

"This should have always been a team effort, and now it will be."

However, Japan said Monday it was "not at the moment considering issuing a maritime security operation", while Australia announced it would not send any navy ships to the region.

Trump said Tehran wanted a deal to end the fighting, but that he was not prepared to make one on current terms, without giving further details.

Iran's Foreign Minister Abbas Araghchi said his country was not interested in talks with Washington.

"We don't see any reason why we should talk with Americans, because we were talking with them when they decided to attack us," he told CBS's "Face The Nation" in an interview aired Sunday.

"There is no good experience talking with Americans," adding that "we never asked for a ceasefire, and we have never asked even for negotiation".

However, he did say he was ready to speak to countries "who want to talk to us about the safe passage of their vessels".

"I cannot mention any country in particular, but we have been approached by a number of countries" seeking such safe passage, he added.

Meanwhile, traders hoping for an early end to the conflict were left disappointed after Trump's top economics adviser Kevin Hassett said the Pentagon estimates it could take up to six weeks, though the operation was ahead of schedule.

Both main crude contracts advanced. Brent shot up around three percent to as high as $106.50 before paring the gains, while West Texas Intermediate sat around $99.

And with worries growing about a possible energy crisis that could hammer the global economy, equity markets remained under pressure.

Tokyo, Shanghai, Sydney, Seoul, Wellington, Manila and Jakarta were all down, though Hong Kong, Singapore and Taipei edged up.

"Equities may welcome any sign that Hormuz could be reopened, but with further strikes still being threatened and diplomacy still patchy, conviction is low," said Charu Chanana at Saxo Markets.

Adding to economic concerns was data showing Friday that fourth-quarter US gross domestic product expanded 0.7 percent, much slower than the initial reading of 1.4 percent.

And delayed figures showed the Federal Reserve's preferred inflation gauge dipped to 2.8 percent in January before energy prices shot higher.

"Developments over the weekend, while no more disconcerting than at the end of last week, don't offer any obvious pretext for a less pessimistic start to the new trading week," warned National Australia Bank's Ray Attrill.

Also in view this week are policy meetings at seven major central banks including the Fed, Bank of England and the European Central Bank.

While they are expected to stand pat on interest rates, any remarks on the impact of the war on their respective economies will be closely followed.

Business

Bahrain Starts to Cut Production at World’s Largest Aluminium Smelter

A worker walks past the storage of aluminium ingots at the aluminum smelter Aluminium Dunkerque in Loon-Plage near Dunkirk, France, September 22, 2022. REUTERS/Pascal Rossignol
A worker walks past the storage of aluminium ingots at the aluminum smelter Aluminium Dunkerque in Loon-Plage near Dunkirk, France, September 22, 2022. REUTERS/Pascal Rossignol
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Bahrain Starts to Cut Production at World’s Largest Aluminium Smelter

A worker walks past the storage of aluminium ingots at the aluminum smelter Aluminium Dunkerque in Loon-Plage near Dunkirk, France, September 22, 2022. REUTERS/Pascal Rossignol
A worker walks past the storage of aluminium ingots at the aluminum smelter Aluminium Dunkerque in Loon-Plage near Dunkirk, France, September 22, 2022. REUTERS/Pascal Rossignol

Aluminium Bahrain, known as Alba, said on Sunday it had initiated a shutdown of three aluminium smelting lines accounting for 19% of its capacity to preserve business continuity amid ongoing disruption in the Strait of Hormuz.

The closures are the latest impact on the Middle East aluminium sector, which accounts for around 9% ⁠of global supply, from the US-Israeli war on Iran, according to Reuters.

Fears of shortages propelled London Metal Exchange aluminium to a nearly four-year high of $3,546.50 per metric ton on Thursday.

Alba, which has smelting capacity of 1.62 million tons of aluminium per year, said in a statement it had initiated a “controlled and safe shutdown” of reduction lines 1, 2 and 3.

“This targeted, line-specific action is designed to optimize the utilization of Alba's existing raw materials inventory and prioritize operational stability across Reduction Lines 4, 5 and 6,” added ⁠Alba, which describes itself as the “world's largest aluminium smelter on one site.”

The company had issued force majeure on March 4 since it was unable to ship metal to customers due to the effective closure of the Strait of Hormuz.

The closure has also left Middle East ⁠smelters unable to bring in vessels carrying their key raw material, alumina.

Energy supply is another issue for smelters.

Qatar's Qatalum had begun a shutdown on March 3 due to a suspension of its ⁠gas supply but will now operate at 60% capacity.

Alba, meanwhile, said it would use the opportunity to undertake asset care and maintenance on the three shuttered lines, including ⁠comprehensive housekeeping and cleaning activities, laying the foundations for a safe restart when conditions improve.

“The company is also working closely with suppliers and customers to manage commitments and mitigate disruption,” it added.