UAE’s DAMAC Boosts Investment in Saudi Data Centers

Hussain Sajwani, Chairman of the Board of Directors of DAMAC. (DAMAC)
Hussain Sajwani, Chairman of the Board of Directors of DAMAC. (DAMAC)
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UAE’s DAMAC Boosts Investment in Saudi Data Centers

Hussain Sajwani, Chairman of the Board of Directors of DAMAC. (DAMAC)
Hussain Sajwani, Chairman of the Board of Directors of DAMAC. (DAMAC)

Hussain Sajwani, Chairman of the Board of Directors of DAMAC, said that the group’s investment in data centers in Saudi Arabia came after an extensive study of the Saudi market, which offered many promising investment opportunities within the framework of Vision 2030.

In an interview with Asharq Al-Awsat, Sajwani pointed to the Kingdom’s developed infrastructure, which allows quick access to undersea cable systems, making it one of the most connected countries of the Gulf Cooperation Council on both the local and international levels.

“Saudi Arabia’s national fiber optic network provides terrestrial connectivity to all major Gulf markets, and is a gateway to the main regional submarine cable unloading stations,” he said.

Sajwani noted that the idea of investing in data centers in general dates back to 2020, during the Covid-19 pandemic.

“After I conducted many consultations with specialized analysts and the work team, we began to develop plans and strategies for investing in data centers… In 2021, we obtained a piece of land in Dammam and began establishing a data center there,” he recounted.

Regarding DAMAC’s future plans, the chairman said that the group was seeking to establish two data centers in Dammam and Riyadh with a total capacity of 35 megawatts.

“We have already started building the Dammam Center, which is expected to be ready by the fourth quarter of this year. At an initial stage, the capacity of each center will reach 5 megawatts by the end of 2023, and will be raised again by adding another 5 megawatts for each center in the last quarter of 2024,” Sajwani told Asharq Al-Awsat.

“The total data capacity of the two centers is expected to reach 55 megawatts in 2025,” he added.

The Emirati businessman stressed that Damac’s data centers in Riyadh and Dammam will support Vision 2030, by providing a basis for digital transformation and local and regional innovation.

He revealed that the volume of his group’s investments in data centers in Saudi Arabia amounted to about $600 million and constituted 60 percent of the total volume of DAMAC’s investments in data centers.

Saudi Arabia has been witnessing “a tremendous development in the field of investment, through an ambitious youth vision led by Crown Prince Mohammed bin Salman, to enhance investment opportunities and attract investors from all over the world,” Sajwani emphasized.

He continued: “This growth is the result of the great efforts made by the government to transform the Kingdom into an attractive economic environment for foreign investments, which encouraged many international companies to open regional headquarters in Saudi Arabia.”



Euro Zone Business Growth Slowed Sharply in June

A worker at German manufacturer of silos and liquid tankers, Feldbinder Special Vehicles, welds aluminium at the company's plant in Winsen, Germany, July 10, 2018. REUTERS/Fabian Bimmer/ File Photo Purchase Licensing Rights
A worker at German manufacturer of silos and liquid tankers, Feldbinder Special Vehicles, welds aluminium at the company's plant in Winsen, Germany, July 10, 2018. REUTERS/Fabian Bimmer/ File Photo Purchase Licensing Rights
TT

Euro Zone Business Growth Slowed Sharply in June

A worker at German manufacturer of silos and liquid tankers, Feldbinder Special Vehicles, welds aluminium at the company's plant in Winsen, Germany, July 10, 2018. REUTERS/Fabian Bimmer/ File Photo Purchase Licensing Rights
A worker at German manufacturer of silos and liquid tankers, Feldbinder Special Vehicles, welds aluminium at the company's plant in Winsen, Germany, July 10, 2018. REUTERS/Fabian Bimmer/ File Photo Purchase Licensing Rights

 

Overall business growth across the euro zone slowed sharply last month as a solid expansion in the bloc's dominant services industry failed to offset a further deterioration in manufacturing, a survey showed on Wednesday, Reuters reported.

HCOB's composite Purchasing Managers' Index for the currency union, compiled by S&P Global and seen as a good gauge of overall economic health, dropped to 50.9 in June from May's 12-month high of 52.2.

It was just above a preliminary 50.8 estimate and the fourth consecutive month above the 50 mark separating growth from contraction.

"Growth in the euro zone can be attributed fully to the service sector. While the manufacturing sector weakened considerably in June, activity growth in the services sector continued to be nearly as robust as the month before," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

The services PMI dipped to 52.8 last month from 53.2 but was ahead of the 52.6 flash estimate.

Manufacturing activity across the bloc took a turn for the worse last month as demand fell at a much faster pace despite factories cutting their prices, a sister survey showed on Monday.

Falling demand for manufactured goods, alongside slower growth for services, meant the composite new business index slumped below breakeven for the first time since February, registering 49.4 compared to May's 51.6. The flash reading was 49.2.

That was despite the European Central Bank delivering a widely predicted cut to interest rates last month. It is expected to cut again in September and December, according to a Reuters poll.

Strong wage data and still sticky price pressures have increased uncertainties around the rationale for more cuts but both input and output cost pressures eased, according to the PMI.

Charges levied by services firms rose at the slowest pace in over three years. The output prices index fell to 53.5 from 54.2.

"The ECB ... is getting some support for this decision from the HCOB Services PMI price indices," de la Rubia added.

"Looking forward, the ECB will remain cautious, as the price increases are still way above pre-pandemic averages and still unusually high given the fragile state of the economy."