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.”



Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
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Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo

Oil prices picked up on Tuesday, after the previous session's sell-off, as the market assessed US President-elect Donald Trump's planned trade tariffs on Mexico and Canada and his aim to increase US crude production.

Oil prices had fallen more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict. A senior Israeli official said Israel looks set to approve a US plan for a ceasefire on Tuesday, but some analysts said Monday's sell-off in oil prices had been overdone.

Brent crude futures were up 43 cents, or 0.6%, at $73.44 a barrel as of 1414 GMT. US West Texas Intermediate crude futures were at $69.38 a barrel, up 44 cents, or 0.6%.

Brent crude futures fluctuated between $73.30 and $73.80 a barrel in afternoon trading.

"Today’s intra-day fluctuations are probably more of the function of assessing Trump’s overnight pledge to impose tariffs on Mexico, Canada and China," PVM analyst Tamas Varga said.

On Monday, Trump said he would impose a 25% tariff on all products coming into the US from Mexico and Canada.

The vast majority of Canada's 4 million bpd of crude exports go to the US Analysts have said it is unlikely Trump would impose tariffs on Canadian oil, which cannot be easily replaced since it differs from grades that the US produces.

On Monday, Reuters reported that Trump's team is also preparing an energy package to roll out within days of his taking office that would increase oil drilling.

A senior executive at Exxon Mobil said on Tuesday that US oil and gas producers are unlikely to "radically increase'' production.

OPEC+ MEETING

Market reaction on Monday to the Israel-Lebanon ceasefire news was "over the top" as the broader Middle East conflict has "never actually disrupted supplies significantly to induce war premiums" this year, said senior market analyst Priyanka Sachdeva at Phillip Nova.

Elsewhere, OPEC+ at its next meeting on Sunday may consider leaving its current oil output cuts in place from Jan. 1. The producer group is already postponing hikes amid global demand worries.