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Saudi Factories Pass Global SIRI Index for Transformation towards 4th Industrial Revolution

Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
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Saudi Factories Pass Global SIRI Index for Transformation towards 4th Industrial Revolution

Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)
Saudi factories embarked on the implementation of the Fourth Industrial Revolution and Artificial Intelligence techniques. (Asharq Al-Awsat)

Fifty-eight factories under the Saudi Authority for Industrial and Technology Zones (Modon) have passed the global Smart Industry Readiness Index (SIRI) that measures the level of facilities created to back the Fourth Industrial Revolution.

Saudi Arabia is moving towards harnessing the technologies of the Fourth Industrial Revolution, such as artificial intelligence, blockchain, self-driving cars, the Internet of Things, and smart cities, which reflects the government’s keenness to make the Kingdom a pioneer in this field.

Global developments

In a statement, Modon said the recent success is a culmination of efforts to keep pace with developments in the global industrial sector, and to ensure the transfer of the latest technologies that support the competitiveness of national products in local, regional and international markets.

It also falls within the Kingdom’s endeavor to enhance the national export system, in accordance with the best approved quality standards, and the initiatives of the National Industrial Development and Logistics Program (NIDLP).

Qusai Al-Abdul Karim, Director of Marketing and Corporate Communications Department, the official spokesperson for the authority, said Modon was keen on implementing the objectives of the national productivity program, as the main focus of its strategy for digital transformation.

Digital transformation

Al-Abdul Karim noted that the National Productivity Program was able to train 450 leaders from 76 factories on the concepts of the Fourth Industrial Revolution, in cooperation with two global technical partners - General Electric and McKinsey.

He added that in order to enhance the success of the National Productivity Initiative at the industrial sector level, the factories of the Royal Commission for Jubail and Yanbu have joined the program, where 63 digital transformation plans were delivered to more than 15 industrial sectors, enhancing support for the Modon strategy towards empowering the industry and contributing to increasing local content in integration with the public and private sectors in the Kingdom.

Since 2001, Modon has been providing industrial lands with integrated services. The Authority currently supervises 36 cities across the Kingdom that include more than 4,000 productive factories, in addition to private industrial complexes.

Modon is also working on developing and enhancing its investment system through quality programs, to keep pace with the aspirations of its partners in the private sector and to empower women, as well as small and medium enterprises.

Ready-made factories

The Saudi Authority for Industrial Cities and Technology Zones recently inaugurated 58 ready-made factories in support of small and medium enterprises, pioneers and entrepreneurs and to encourage women’s investments.

The move is part of the NIDLP initiatives to boost the contribution of the non-oil sector to the GDP and enrich the development base of the national economy.

The new factories cover an area of 700 square meters per unit.

Eng. Osama Al-Zamil, Modon CEO, said the project was the product of an effective partnership between the public and private sectors as part of Modon’s strategy to enable industry and contribute to increasing local content.

Small and medium enterprises

The General Authority for Small and Medium Enterprises (Monsha’at) announced in its report for the second quarter of 2002, which was issued on Sunday, that the number of SMEs exceeded 892,000 companies, an increase of 25.6 percent compared to the fourth quarter of 2021.

The report disclosed that the investment financing obtained by Saudi startups grew by 244 percent to reach SR2.19 billion (USD 584 million dollars) in the first half of 2022 on an annual basis.

The report stated that the percentage of establishments owned by women amounted to 45 percent of the total owners of start-up companies in the Kingdom, which is double the percentage achieved in 2017.

International conference

Meanwhile, the National Committee for the Saudi Steel Industry announced that the Second Saudi International Iron and Steel Conference would be organized on Sept. 12-14 at the Four Seasons Hotel in Riyadh, under the auspices of the Minister of Industry and Mineral Resources, Bandar Al-Khorayef, and the Minister of Investment, Khalid bin Abdulaziz Al-Falih.

About 50 speakers, including leaders from the steel industry, government officials and CEOs of giant projects, will participate in the conference, while more than 750 participants are expected the attend the conference, including international, regional and local media organizations.

The conference will address a number of challenges facing the Saudi iron and steel industry, in addition to global economic developments and their repercussions on the industry in Saudi Arabia and the world.

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Business

Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
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Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo

Egypt signed a contract with Qatar's Al Mana Holding for a first-phase investment of $200 million to produce sustainable aviation fuel from used cooking oil in the Suez Canal Economic Zone at Ain Sokhna, Egypt's cabinet said on Sunday.

The project will be developed in three phases and will span 100,000 square metres in the Integrated Sokhna Zone on Egypt's Red Sea coast. The first phase will have an estimated annual production capacity of 200,000 tonnes, Reuters quoted the cabinet as saying in a statement.

The deal marks the first Qatari industrial investment in the Suez Canal Economic Zone, Egypt said.

Prime Minister Mostafa Madbouly said the project "reflects the positive momentum in relations between Cairo and Doha, driven by the shared political will to advance bilateral cooperation through joint investments and increased trade."

Last month, the real estate arm of Qatar's sovereign wealth fund said it would invest $29.7 billion to develop a luxury real estate and tourism project on Egypt's Mediterranean coast.

 

Business

Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)
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Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)

Saudi Arabia is preparing to enter a new phase of economic openness in the real estate sector, with the updated law regulating property ownership by non-Saudis set to take effect in January.

The law, approved by the Saudi cabinet in July, is a strategic step to regulate real estate ownership by non-Saudis, both individuals and entities. Its main objective is to boost the real estate sector’s contribution to gross domestic product and diversify national income sources away from oil, in line with Vision 2030 goals.

The General Authority for Real Estate, the body responsible for implementation, is currently drafting the executive regulations and defining the geographic scope of areas where foreigners will be allowed to own and invest in property. These details are expected to be announced before the law comes into force.

The new legislation also aims to retain global talent by enabling long term residency and improving urban and housing quality.

Scope of ownership

Saudi Minister of Municipalities and Housing Majed Al-Hogail said in a televised interview last week that the system allowing foreigners to own residential property would be implemented next month across all Saudi cities, except for four, Makkah, Madinah, Jeddah and Riyadh.

In those cities, ownership will be permitted in specific designated areas. Resident expatriates will be allowed to own one residential unit.

In contrast, the system offers broader flexibility in other economic sectors, with foreign ownership open across all Saudi cities without exception in the commercial, industrial and agricultural sectors.

Fahd bin Suleiman, executive director of non-Saudi property ownership at the authority, said in November that areas designated for foreign ownership in Riyadh, Jeddah and the holy cities of Makkah and Madinah were still under review and would be announced “very soon” alongside the executive regulations governing the new rules.

He said those areas would be “very wide” and include what are known as mega projects, with foreign ownership ratios expected to range between 70 percent and 90 percent.

Bin Suleiman added that buyers would be required to be Muslim to purchase property in the two holy cities, but would otherwise face limited restrictions.

“In general, there are no major conditions, and we do not want to impose constraints. When comparing the current law with the updated one, the difference will be clear,” he said.

Market expectations

Commenting on the imminent implementation of the updated system, several real estate experts told Asharq Al-Awsat that the law would generate additional demand for ready built housing units and increase liquidity in the property market.

They said it would also encourage international companies to establish headquarters and projects in the Kingdom, supporting economic activity and laying the foundation for a more stable and growing real estate sector.

They expect the positive impact to be most evident in Riyadh, Jeddah, Makkah, Taif and Madinah, as well as cities near tourist destinations, with initial effects emerging in the third and fourth quarters of 2026 and extending into 2027.

Real estate expert and marketer Saqr Al-Zahrani said the system’s implementation would mark a turning point for the Saudi property market by expanding the base of market participants and prompting many expatriates to move from renting to ownership, particularly in permitted cities.

This shift, he said, would create additional demand for ready built units and planned residential communities, boosting sales activity and market liquidity.

Raising property quality

Al-Zahrani added that opening commercial, industrial and agricultural ownership to foreigners across all cities would give international companies stronger incentives to establish operations in Saudi Arabia, supporting economic growth and long term real estate sector stability.

He said one of the first expected changes would be an improvement in property quality, as developers move toward higher specifications and better planning to meet the needs of a broader buyer base.

The market is also likely to see an increase in organized supply, driven by the entry of local and international investors and developers targeting new demand.

The updated system, he said, would support price stability, as ownership by expatriates and foreigners tends to be long term, reducing short term speculation.

It would also enhance transparency and governance through accompanying legal and regulatory controls, while creating wider opportunities for the financing sector to develop tailored products for expatriates and foreigners, boosting lending activity and liquidity.

Al-Zahrani said the announcement of the system’s implementation would trigger immediate inquiries and interest, but the real impact on transaction volumes would emerge gradually, with initial signs expected in the second quarter of 2026, as the first deals are completed.

Clear indicators such as higher trading volumes, faster project delivery and increased foreign investor participation are likely to materialize in the third and fourth quarters, once the market has absorbed the executive regulations and begun to interact with them in a stable manner.

He said the first year of implementation would be a transition period, with the strongest effects becoming evident in the second half of 2026 and beyond.

Varying impact by geography

Real estate expert Ahmed Al Faqih said the system’s impact would vary by location, with the strongest positive effects expected in the Makkah region and its cities, including Jeddah and Taif, as well as Madinah. Riyadh, he said, would also play a prominent role in attracting non-Saudi capital for both ownership and investment.

Al Faqih said capital targeting tourism investment would likely focus on cities near tourist areas, such as Taif, Abha and Jazan, as well as Tabuk due to its proximity to the Neom project.

He expects the first year of implementation to serve as a testing and evaluation phase, with the system’s impact becoming more evident in 2027. He said the law would support key Vision 2030 objectives, including income diversification and reducing reliance on oil, while creating hundreds of thousands of job opportunities for Saudi men and women.

System incentives

The updated law aims to regulate real estate ownership by non-Saudis in line with Vision 2030, attract foreign direct investment into the Saudi property market and increase the sector’s contribution to the economy.

It also seeks to retain global talent by enabling long term settlement, raise the contribution of non-oil sectors, support sustainable economic growth and improve urban living standards.

Under the law, non-Saudis are permitted to own property or acquire rights within geographic areas designated by the cabinet, based on a proposal from the Real Estate General Authority and approval by the Council of Economic and Development Affairs. This includes specifying eligible rights, maximum ownership ratios and related controls.

The law also allows a non-Saudi resident natural person to own one residential property outside the designated geographic scope, excluding Makkah and Madinah. Ownership in those two cities requires the buyer to be Muslim.

Non listed companies partly owned by non-Saudis are permitted to own property within the designated areas, including Makkah and Madinah, provided they are established under Saudi company law. They may also own property outside those areas for operational purposes or employee housing, as defined by the regulations.

Listed companies, investment funds and special purpose entities are allowed to own property across the Kingdom, including Makkah and Madinah, in accordance with rules issued by the Capital Market Authority in coordination with the real estate authority and other relevant bodies.

The law stipulates that its application does not affect rights granted under other systems, such as the Premium Residency Program or Gulf Cooperation Council agreements, and that foreign ownership does not confer any additional privileges beyond legal rights.

It also introduces a fee of up to 5 percent of the property transaction value for non-Saudi ownership, with details to be set out in the executive regulations.

Violations may result in fines or warnings, while providing misleading information can lead to fines of up to 10 million riyals and, in some cases, court ordered sale of the violating property.

Business

China Urges Stronger Coordination Between Business, Finance Systems to Spur Consumption

People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
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China Urges Stronger Coordination Between Business, Finance Systems to Spur Consumption

People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)
People walk past a second hand market for luxury cars in Beijing, Tuesday, Nov. 25, 2025. (AP Photo/Andy Wong)

China's commerce ministry and financial regulators have urged local authorities to promote stronger coordination between business and financial systems to boost consumption, a joint statement showed on Sunday.

Local commerce departments are encouraged to tap existing funding channels for consumption-boosting campaigns and work with financial institutions to unlock spending potential, the Ministry of Commerce, People's Bank of China and National Financial Regulatory Administration said in a joint statement.

Regions with resources are encouraged to use digital yuan smart-contract "red packets" to improve policy efficiency.

The trio also called for measures such as financing guarantees, interest subsidies and risk compensation to strengthen policy synergy and guide more credit into key consumption sectors.

In other economic news, Chinese demand for foreign luxury cars is waning as customers opt for more affordable Chinese brand models, often sold at big discounts, catering to their taste for fancy electronics and comfort.

That is bad news for European carmakers like Porsche, Aston Martin, Mercedes-Benz and BMW that have long dominated the upper reaches of the world's largest auto market.

A prolonged property downturn in China has left many consumers with little appetite for big purchases.

Meanwhile, the well-to-do are becoming increasingly shy about publicly displaying their wealth, said Paul Gong, UBS head of China Automotive Industry Research.

Many car buyers have been swayed by a 20,000 yuan ($2,830) trade-in subsidy offered by the Chinese government for purchasing electric and plug-in hybrid vehicles. People tended to purchase cheaper, entry-level cars where the discount will count more and those cars are mostly Chinese made, Gong said.

“Slowing economic growth is one key driver behind weaker demand for premium cars,” said Claire Yuan, director of corporate ratings for China autos at S&P Global Ratings, referring to a segment that typically counts car brands such as Mercedes-Benz and BMW.

The market share of premium car sales in China, usually priced above 300,000 yuan ($42,400), more than doubled between 2017 and 2023 to about 15% of total sales, S&P said.

That trend is now reversing. The share of premium cars sales fell to 14% in 2024 and to 13% in the first nine months of 2025, S&P said.