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Emirates Stops Flights to 3 Major Australian Cities

FILE PHOTO - An Emirates Airbus A380-800 plane is seen at Nice International airport in Nice, France, September 19, 2018. REUTERS/Eric Gaillard
FILE PHOTO - An Emirates Airbus A380-800 plane is seen at Nice International airport in Nice, France, September 19, 2018. REUTERS/Eric Gaillard
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Emirates Stops Flights to 3 Major Australian Cities

FILE PHOTO - An Emirates Airbus A380-800 plane is seen at Nice International airport in Nice, France, September 19, 2018. REUTERS/Eric Gaillard
FILE PHOTO - An Emirates Airbus A380-800 plane is seen at Nice International airport in Nice, France, September 19, 2018. REUTERS/Eric Gaillard

Dubai-based Emirates has suspended flights to Australia's three largest cities.

The carrier was one of the last to maintain routes into and out of the country's east coast throughout most of the pandemic but on Friday evening told travelers a handful of planned flights next week would be the last.

"Due to operational reasons, Emirates flights to/from Sydney, Brisbane and Melbourne will be suspended until further notice," Emirates said on its website.

The airline will still run two flights a week to Perth.

Australia's borders have effectively been closed since March to curb the spread of the coronavirus, with the government even limiting the number of citizens allowed to return.

Last week travel restrictions were further tightened, with arrival numbers slashed and all travelers into the country requiring a negative Covid-19 test before flying.

In making the changes, Prime Minister Scott Morrison cited a growing number of people in quarantine testing positive for new strains of Covid-19.

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Business

Standard & Poor's Expects Saudi Real GDP to Grow by 2.2% in 2024, 5% in 2025

S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
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Standard & Poor's Expects Saudi Real GDP to Grow by 2.2% in 2024, 5% in 2025

S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
S&P said the banking system in Saudi Arabia remains in good shape (Reuters)

S&P Global Ratings expected the real GDP of Saudi Arabia to grow by 2.2% in 2024, and by 5% in 2025.
In its latest report seen by the Arab World Press, the rating agency said the surge in the non-oil sector will contribute an increasing share of this growth, mainly due to government-led investments in Vision 2030 projects.
On the other hand, S&P projected that banks and capital markets will contribute a significant amount in Vision 2030, which requires around $1 trillion in investment over several years.
The report stated that part of this investment will also come from the government and the Public Investment Fund (PIF).
S&P Global Ratings said it believes that investments in Vision 2030 will inevitably increase leverage in Saudi Arabia’s private sector and the broader economy. However, it noted that the pace and extent of the increase in leverage in the corporate sector remain uncertain.
The agency said lending growth in Saudi Arabia’s banking system over the past five years was primarily due to an increase in mortgages. It then attributed this reason to the lack of a material increase in publicly listed corporate debt.
Moreover, S&P said companies in Saudi Arabia have been cautious about committing to large capital expenditures due to high-interest rates.
And even though listed companies’ leverage remains manageable, S&P expected that debt is building up in the private sector among unlisted entities, and therefore would support strong corporate growth.
The agency added that the structure of corporate balance sheet debt is changing, with a growing contribution from international debt versus domestic debt.
The S&P report also showed that higher private-sector leverage in Saudi Arabia’s banking landscape could create imbalances and pose asset-quality problems in the future. However, the banking system remains in good shape, with strong overall asset-quality indicators and capitalization, it affirmed.
The report also expected banks’ good profitability and conservative dividend payouts to continue supporting their capitalization over the next one-to-two years.
In addition to raising debt, the agency said Saudi Arabia’s companies have been active in raising new equity through initial public offerings (IPOs) in 2022 and 2023.
It noted that until May 2, 13 private companies have announced potential listings on Saudi Arabia’s main market and parallel market (Nomu). In addition to strong internal cash flow generation, this will help contain the buildup of corporate debt.
Meanwhile, debt buildup in the Saudi economy will remain in focus, S&P said. It expected its growth to be gradual and concentrated with companies in the PIF portfolio.
The rating agency also noted that Saudi Arabia still faces some risks including higher-for-longer interest rates and geopolitical risks, which could mean higher spreads for the weakest companies.

 

Business

Riyadh Witnesses Launch of 1st European Chamber of Commerce

The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
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Riyadh Witnesses Launch of 1st European Chamber of Commerce

The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA

The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) will officially launch in Riyadh on Wednesday. The chamber aims to strengthen economic, investment, and trade ties between the European Union, Saudi Arabia, and the Gulf states.

Before the launch, ECCKSA Chairman Lorcan Tyrrell highlighted that the Chamber’s formation followed over a year of collaborative efforts with EU and Saudi officials.

Q: When will the work of the European-Saudi Chamber of Commerce officially begin? Is there a specific commercial, investment or economic project with which the Chamber’s work will be launched?
Work has been ongoing by the EU Delegation and Founding Group Members for over 12 months. Following a very proactive dialogue with European and Saudi Government Officials, we are now in a position to open our organization to Members. Our Founding Group Members have been volunteering in their capacity to see us reach this part of the journey and are now transitioned to the First Board of the First European Chamber of Commerce in GCC.
There are emerging priorities that we may focus on in our sectoral committees. However, there is a unique opportunity for our new members to shape the voice and priorities of the Chamber of Commerce with Governements and Policy makers in both KSA and Europe. Two areas of focus just at the moment include the Green Transition Programme to help utilize best sustainability processes and green energy solutions as well as Women in Leadership which are active programmes within the EU-GCC dialogue.
Q: What facilities will the chamber provide to the business sector on both sides?
We will focus on three key priorities. Our primary focus will be on business positioning. Highlighting the key priorities for policy makers to focus on through position papers for example. This will be supported through advocacy and working group engagement with Ministries and Enterprise Agencies. Our secondary focus shall be around facilitating members to join the Chamber and to provide events for networking and publications to support the members businesses. All of this will then be supported through our tertiary priority which is to link back to EU and KSA to remove barriers to accessing the market. This may for example include helpdesks to help companies navigate the right channels to doing business in Saudi.
It should be highlighted as part of these priorities that we will also be opening bi-lateral communications into Europe for Saudi businesses to share their knowledge in services and goods and grow the trade channel in both directions.
Q: What are the most prominent challenges that the Chamber will work to find solutions for? 
Facilitate dialogue between the stakeholders that have enabled this initiative and the Members / Businesses that will join.
Seek opportunities to increase localization and for Saudi businesses to prosper through European Businesses being present in KSA.
Remove existing obstacles to trade in areas that our members currently experience and share good innovative solutions that businesses have found to be positive.
Q: Will the Chamber have any role in launching a free trade zone in the region?
This is not something that we are currently involved in. We will meet the various Ministries of Government to ensure we listen and prioritize key initiatives. This will be reflected through our Members and the European Government.
Q: What are your expectations for an increase in the growth rate of trade and investment during the year 2024?
We expect that a European Chamber of Commerce will focus on the sectoral opportunities within KSA. So for example if we look at Energy we will focus on how we can join the Energy and Utilities sector together with a unified voice and increase opportunities to prosper and trade more. This is equally the case on how KSA is perhaps in a position to export energy solutions to Europe that are not part of the oil industry such as green hydrogen fuels.
 

Business

Aramco Reports 14% Decline in First-quarter Net Income to $27.3 Billion

Aramco President & CEO Amin H. Nasser. Reuters file photo
Aramco President & CEO Amin H. Nasser. Reuters file photo
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Aramco Reports 14% Decline in First-quarter Net Income to $27.3 Billion

Aramco President & CEO Amin H. Nasser. Reuters file photo
Aramco President & CEO Amin H. Nasser. Reuters file photo

Saudi Aramco reported on Tuesday a 14% decline in net income to $27.3 billion in the three months to March 31, down from $31.9 billion a year earlier, according to a company earnings statement.

The company declared base dividend payouts for the first quarter totaling $20.3 billion and a performance-linked dividend distribution of $10.8 billion to be paid in the second quarter.

It said it expects total dividends of $124.3 billion to be declared in 2024, of those $43.1 billion in performance-linked dividends.

“Our first-quarter performance reflects the resilience and strength of Aramco, reinforcing our position as a leading supplier of energy to economies, to industries and to people worldwide,” said Aramco President & CEO Amin H. Nasser.

“We also continue to execute our long-term strategy, and in the first quarter made significant progress on expanding our gas business and growing our globally-integrated downstream value chain, while maintaining our focus on consistently delivering value for our shareholders.”

He expected Aramco’s “portfolio to continue to evolve as we aim to contribute to an energy transition that offers solutions to climate challenges, but at the same time recognizes the need for affordable, reliable, and flexible energy supplies.”

Business

UAE, New Zealand to Launch Talks for Free Trade Deal

The United Arab Emirates and New Zealand will begin negotiations over a free trade agreement. WAM
The United Arab Emirates and New Zealand will begin negotiations over a free trade agreement. WAM
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UAE, New Zealand to Launch Talks for Free Trade Deal

The United Arab Emirates and New Zealand will begin negotiations over a free trade agreement. WAM
The United Arab Emirates and New Zealand will begin negotiations over a free trade agreement. WAM

The United Arab Emirates and New Zealand will begin negotiations over a free trade agreement, which will boost trade and investment ties between the two nations.

New Zealand’s Minister for Trade Todd McClay met his UAE counterpart to announce the start of talks on a Comprehensive Economic Partnership Agreement, according to a statement on Tuesday.

UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi said that a Comprehensive Economic Partnership Agreement will open up a range of opportunities for both countries, “with the UAE offering direct access to new markets for New Zealand’s exports, particularly in food and agricultural products, while our services exporters and investors will be able to explore a range of high-value sectors. We are both eager to get started.”

"The UAE is an important bilateral partner for New Zealand, and today’s launch of negotiations is an exciting step towards growing our significant trade and economic relationship," said McClay.

The UAE is New Zealand's largest trade partner in the Middle East and exports hit NZ$1.02 billion ($613 million) in the year to September 2023, up 17% from the year before, according to New Zealand foreign ministry data.

Business

ECB Grows More Confident About Cutting Rates, Policymakers Say

The European Central Bank headquarters in Frankfurt. SPA
The European Central Bank headquarters in Frankfurt. SPA
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ECB Grows More Confident About Cutting Rates, Policymakers Say

The European Central Bank headquarters in Frankfurt. SPA
The European Central Bank headquarters in Frankfurt. SPA

The European Central Bank is growing more confident about cutting interest rates as euro zone inflation continues to ease, three ECB policymakers said on Monday.
ECB policymakers Philip Lane, Gediminas Simkus and Boris Vujcic said separately that the latest inflation and growth data cemented their belief that inflation will head back to the central bank's 2% target by the middle of next year.
Euro zone inflation stood at 2.4% in April and a crucial indicator of underlying price pressures slowed while the economy staged a small rebound.
"Both the April flash estimate for euro area inflation and the first quarter GDP number that came out improve my confidence that inflation should return to target in a timely manner," ECB Chief Economist Lane told Spanish newspaper El Confidencial.
Simkus, Lithuania's central bank governor, was more outspoken, saying he continued to expect the ECB to reduce rates three times by the end of 2024.
"My thinking is that there are some other interest rate cuts coming in the future, but I will restrict myself from elaborating on how many, even if I have already expressed that this year, I would expect three cuts," Simkus told reporters in Vilnius, according to Reuters.
The ECB has all but promised a rate cut on June 6 and money markets are almost fully pricing in three cuts this year, with traders boosting their bets after some dovish rhetoric by the Federal Reserve and weak US jobs data late last week.
This would take the rate that the ECB pays on bank deposits from a record 4% to 3.25%, a level that most policymakers would still describe as restrictive -- or curbing economic activity.
"The incoming data so far are quite consistent with our projections," Croatian governor Boris Vujcic said at the Vilnius event. "If the projections stand, as we see it at the moment, I would expect the loosening of the policy stance, but still staying in the restrictive territory to make sure inflation is brought down to the 2% level."
While the ECB insists it is not dependent on the Fed, a widening interest rate gap between the world's biggest central banks would weaken the euro and boost European inflation, likely limiting the ECB's appetite for going it alone.
Lane said that April inflation data finally showed progress on services prices but the bank would continue to focus on services to make sure it did not derail disinflation later on.
The ECB expects it to fluctuate around this level for most of this year, before falling again in 2025.

Business

Saudi-US Business Council to Mark 13th Anniversary of Its Founding

Interim President and CEO; Executive Director at US-Saudi Business Council Susanne Lendman. (SPA)
Interim President and CEO; Executive Director at US-Saudi Business Council Susanne Lendman. (SPA)
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Saudi-US Business Council to Mark 13th Anniversary of Its Founding

Interim President and CEO; Executive Director at US-Saudi Business Council Susanne Lendman. (SPA)
Interim President and CEO; Executive Director at US-Saudi Business Council Susanne Lendman. (SPA)

The Saudi-US Business Council will organize a celebration Wednesday in Houston, Texas, on the occasion of the 13th anniversary of its founding. Investment and business figures from the two countries will attend.
In a statement to the Saudi Press Agency, the council's interim President and CEO Susanne Lendman stated that the anniversary comes as American exports to the Kingdom hit $13.87 billion in 2023, amid thriving expectations for trade relations between the two countries.
She emphasized the council’s commitment to facilitating partnerships through targeted outreach, missions, executive roundtables, and seminars throughout the United States to increase broad opportunities for trade and investment between the two countries.

Business

Biggest Water Theme Park in the Region 'Aquarabia' Joins Six Flags Qiddiya City

Located in Qiddiya City, Aquarabia will complement Six Flags Qiddiya City, the city's flagship theme park. SPA
Located in Qiddiya City, Aquarabia will complement Six Flags Qiddiya City, the city's flagship theme park. SPA
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Biggest Water Theme Park in the Region 'Aquarabia' Joins Six Flags Qiddiya City

Located in Qiddiya City, Aquarabia will complement Six Flags Qiddiya City, the city's flagship theme park. SPA
Located in Qiddiya City, Aquarabia will complement Six Flags Qiddiya City, the city's flagship theme park. SPA

The Board of Directors of the Qiddiya Investment Company (QIC) has announced the launch of Aquarabia, the first water theme park of its kind in Saudi Arabia and the largest in the region.

Located in Qiddiya City, Aquarabia will complement Six Flags Qiddiya City, the city's flagship theme park and the first Six Flags park to be designed and built outside of North America.

Embracing Qiddiya's Power of Play philosophy, Aquarabia will be Saudi's first home-grown water theme park and will draw visitors from across the globe with its twenty-two rides and family-friendly water-based experiences. This includes four world records, including the world's tallest water coaster, the tallest drop body slide, the tallest water slide, and the longest mat racer.

Aquarabia will also offer the first underwater adventure ride featuring fully submersible vehicles. Adrenaline lovers will enjoy an extreme watersports zone dedicated to rafting, kayaking, canyoneering, free solo climbing and cliff jumping, as well as the Kingdom's first surf pool. Moreover, Aquarabia will offer immersive, narrative-based design elements and attractions seldom seen in water parks, with its theming based around ancient desert wellsprings and Qiddiya’s wildlife seeking an oasis.

Aquarabia will complement Qiddiya City's theme park offering with the previously announced Six Flags Qiddiya City, a thrill park that will push the boundaries of the possible with twenty-eight rides and attractions.

Six Flags Qiddiya City will feature five world record-breaking coasters spread across six uniquely themed lands: Sirocco Tower, the world’s tallest free standing shot tower ride; Gyropsin, the world’s tallest pendulum ride; Spitfire, the world’s tallest inverted top hat coaster; Iron Rattler, the world’s tallest tilt coaster; and the Falcons Flight, the world's tallest, fastest and longest roller coaster which will run parallel to the F1 track.

Aquarabia and Six Flags Qiddiya City are located within Qiddiya City in an entirely walkable neighborhood where visitors can find a unique selection of activities and a broad range of hotels, dining options and even a green oasis to unwind and recharge between exhilarating rides and adrenaline-pumping experiences. Through innovative design and infrastructure, visitors will move around effortlessly, minimizing journey time and maximizing enjoyment. The seamless connection between both new parks is a statement that in Qiddiya City, every moment spent exploring is filled with excitement.

Business

Saudi Arabia’s Alat Boosts Sustainable Manufacturing Capabilities

Alat is a company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy. SPA
Alat is a company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy. SPA
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Saudi Arabia’s Alat Boosts Sustainable Manufacturing Capabilities

Alat is a company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy. SPA
Alat is a company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in the Kingdom of Saudi Arabia powered by clean energy. SPA

Alat, a PIF company focused on transforming global industries (electronics and industrials) and creating a world-class manufacturing hub in Saudi Arabia, has announced the launch of two new business units - Electrification and AI Infrastructure.

Alat made the announcement in a press release on Monday. It said the two business units will address unprecedented global demand for AI infrastructure and the urgent need to support global energy transition by strengthening electricity grid technology.

Electrification is a key goal for Alat to not only strengthen grid technology for robust and increased use of technology, but also as the growth of electricity grows exponentially, with electricity being the key energy produced by solar, wind and hydrogen clean energy to power industrial processes, it said.

By combining Saudi Arabia’s rich resources of solar energy and other clean energy sources with electric powered industrial systems, Alat intends to manufacture solutions that will contribute significantly to the global energy transition and the decarbonization of industry, the statement added.

According to the statement, the Electrification business unit will focus on transmission and distribution technologies. It will also include the connection of renewable energy sources to the grid and latest technologies for gas and hydrogen generation and compression.

The AI Infrastructure business unit is focused on the technology necessary for AI capabilities and encompasses network and communications equipment, servers, data center networking equipment, data center storage, industrial edge servers, and industry 4.0 computing, said Alat.

The adoption of AI in combination with other industry 4.0 technologies, including robotics, will enable a leap forward in smart manufacturing and the creation of intelligent factories. The AI Infrastructure Business Unit will not only manufacture solutions for Alat customers but will also contribute to Alat’s advanced technology goals, it added.

"I am pleased to announce these two exciting new divisions as they will make a significant contribution to Alat’s overall strategic goal of developing an advanced, sustainable future for industry,” the statement quoted Global CEO at Alat Amit Midha as saying.

Business

Lord Mayor of London: Intense Efforts Underway to Deepen Partnerships between Saudi Arabia, UK

Lord Mayor of London Michael Mainelli. (Asharq Al-Awsat)
Lord Mayor of London Michael Mainelli. (Asharq Al-Awsat)
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Lord Mayor of London: Intense Efforts Underway to Deepen Partnerships between Saudi Arabia, UK

Lord Mayor of London Michael Mainelli. (Asharq Al-Awsat)
Lord Mayor of London Michael Mainelli. (Asharq Al-Awsat)

Lord Mayor of London Michael Mainelli revealed that intense efforts are underway to maximize fintech, green financing, AI, space and cyberspace partnerships with Saudi Arabia.

He added that the UK and Saudi Arabia are important trade partners. “The UK is Saudi Arabia’s largest trading partner in Europe,” he told Asharq Al-Awsat in an interview on the sidelines of his participation at the special meeting of the World Economic Forum in Riyadh last week.

“By working together, British expertise and innovation in sustainable finance can help the Saudi financial services sector to unlock the huge opportunities offered by the green transition,” he remarked.

“One of the major projects we have coming up with Saudi Arabia is the UK-Saudi Sustainable Infrastructure Summit taking place at Mansion House in London on the 24 June in partnership with the Saudi British Joint Business Council (SBJBC UK),” he revealed.

Greatest trade partner

Moreover, Mainelli said: “The UK and Saudi Arabia are important trade partners. The UK is Saudi Arabia’s largest trading partner in Europe with trade worth £17.4 billion (SAR 82 billion). Meanwhile the Gulf Cooperation Council (GCC) is the UK’s fourth largest trading partner with trade worth £65 billion (AR 305 billion). While Saudi investment in the UK is estimated to be worth up to £65 billion (SAR 305 billion).”

“We welcome the ongoing free-trade negotiations between the GCC and the UK and we hope it follows the recommendations of the UK-GCC Joint Trade and Investment Review, which called for swift progress on market access in professional, business and financial services,” he went on to say.

On the importance of the Davos Riyadh Forum and to what extent there will be new opportunities for bilateral, regional and global cooperation in providing clean energy, he said: “The World Economic Forum in Riyadh was an opportunity for Saudi Arabia to showcase the extraordinary progress they’ve made in diversifying their economy away from oil and gas as part of their ambitious Vision 2030.”

“It's great that Saudi Arabia is looking really deep into its future, and I applaud that. I think where Saudi Arabia is headed in hydrogen technology has great potential, as well as in the fields of biology and healthcare,” stressed Mainelli.

“One of the best things about Vision 2030 is the creation of good intellectual jobs for the Saudi people. It is an uplifting vision of what a nation of 40 million can achieve,” he said.

“The UK and London’s expertise in fintech, green finance and insurance make it a natural partner of choice to help Saudi Arabia achieve its Vison 2030 objectives of a diversified economy, financial inclusion and sustainable development.”

“As the UK’s international ambassador for financial and professional services I’m here in the Kingdom to meet with Saudi Arabia’s emerging fintech and green finance clusters, as well as AI and space companies. I will also be holding bilateral meetings with ministers from the finance ministry and investment ministry to discuss how best to deepen our partnership with Saudi Arabia in financial services, notably insurance, banking, digital, green finance, cybersecurity and fintech,” he revealed.

Twinning between London, Riyadh

On the trend towards twinning between London and Riyadh and the most important cooperation projects proposed for both parties, he noted that the UK-Saudi Sustainable Infrastructure Summit in June is one of the major projects coming up with Saudi Arabia.

“The summit will convene up to 200 high-level participants, including policymakers, industry leaders, and financial professionals from the UK and Saudi Arabia, alongside international attendees. It will focus on facilitating knowledge exchange between the UK and Saudi Arabia, with an ambition on deepening existing bilateral partnerships,” said Mainelli.

“In addition, it will encourage more UK financial and professional firms to become proactive partners in offering their skills, products, expertise and capital to help Saudi Arabia reach their sustainable infrastructure ambitions as outlined in Vision 2030. It also demonstrates the importance of creating partnerships and meaningful long-term collaboration between the two Kingdoms.”

“The topics of the summit include: The importance of UK-Saudi Collaboration in Sustainable Infrastructure Development and Advancing the Green Transition; Financing Sustainable Infrastructure: Bridging the investment gap, and the role of public-private partnerships and innovative financing models; Urbanization and Sustainable City Development: Giga Projects and smart urban planning; Green Technology and Renewable Energy Initiatives: Scaling green technologies and promoting innovation,” he revealed.

Mainelli added: “Saudi Arabia is a country at the heart of economic transformation and sustainable development through its economic diversification plan, Vision 2030. With the UK a world leader in sustainable finance, I’m confident that the summit will create solutions and set a template for the rest of the world to follow.”

Business

CEO of Savvy Games Group: Saudi Arabia to Become Global Hub for Electronic Games Industry

Participants are seen at an e-sports event that was recently held in Saudi Arabia. (Asharq Al-Awsat)
Participants are seen at an e-sports event that was recently held in Saudi Arabia. (Asharq Al-Awsat)
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CEO of Savvy Games Group: Saudi Arabia to Become Global Hub for Electronic Games Industry

Participants are seen at an e-sports event that was recently held in Saudi Arabia. (Asharq Al-Awsat)
Participants are seen at an e-sports event that was recently held in Saudi Arabia. (Asharq Al-Awsat)

Saudi Arabia is moving forward in the electronic games industry as part of its efforts to be a global hub in the sector and to attract foreign investments.

The Savvy Games Group, which is wholly owned by the Public Investment Fund (PIF), seeks to develop this promising industry, stated its CEO, Brian Ward.

In an interview with Asharq Al-Awsat, Ward said Savvy aims to become the leading international gaming company in the world and the first investor in the games and e-sports sector at the global level.

The company’s goals also include transforming the Kingdom into the next global hub for games, he underlined, noting that there were currently 16 centers around the world and Riyadh aims to become be the 17th and one of the largest hubs.

Ward revealed that Savvy’s strategy consisted of three pillars. They are: investing in game development and distribution, working with other concerned parties in Saudi Arabia, including government entities, giant projects, or commercial bodies, in order to transform the Kingdom into a major global hub for gaming, and finally, developing e-sports.

He stressed that with regard to e-sports, Savvy has acquired two companies, ESL and FACEIT, and merged them into one entity, and then added a third company called Vindex, which all have been integrated into the ESL FACEIT Group.

“We then invested 30 percent in an e-sports company based in China called (VSPO),” Ward added, explaining that Savvy currently owns 40 percent of the market share in e-sports around the world.

He explained that e-sports is primarily concerned with live events and tournaments, broadcasting live, and playing virtual sports games over the Internet.

He stressed that there is a great number of young Saudis who are very enthusiastic and knowledgeable about games, but the majority of them do not have experience in working in the field, pointing to the need for programs that build the appropriate skills to fill the jobs generated by foreign investments.

Ward highlighted Savvy’s endeavors in developing games, saying that the company has acquired Scopely, a large gaming company based in California and ranked fourth among the largest mobile gaming companies in the world.

Asked about the success factors that help the company achieve its goals, he talked about the support provided by the Saudi Public Investment Fund and the company’s Board of Directors, which have allocated $38 billion to the Savvy Games Group over a long period of time.

According to Ward, Saudi Arabia is the only country in the world that has adopted a national strategy for gaming and e-sports, which he said is expected to provide 39,000 jobs and establish 250 gaming companies.

To achieve this goal by 2030, very close coordination will take place between all the industry players and the different ministries, he underlined.

Touching on the main challenges that have faced the global gaming sector over the past two years, Ward said the macroeconomic climate has become a little more complex, meaning alternative sources of financing for some companies have been difficult, as venture capital, private equity, and public companies have generally been shrinking, not expanding.

He emphasized that the Savvy Games Group has long-term patient capital, thanks to the PIF, which enables it to be an alternative long-term strategic capital partner in an environment that has been more capital constrained.

Asked about the partnership between Savvy and Al Hilal Club, Ward said that the company was pleased to partner with the football club and congratulated it on winning the Saudi Super Cup final in the UAE.