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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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China Rides AI Wave as Exports Surge Past Forecast

Containers and ships are seen at the port in Nanjing, in China's eastern Jingsu province early on June 9, 2026. (AFP)
Containers and ships are seen at the port in Nanjing, in China's eastern Jingsu province early on June 9, 2026. (AFP)
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China Rides AI Wave as Exports Surge Past Forecast

Containers and ships are seen at the port in Nanjing, in China's eastern Jingsu province early on June 9, 2026. (AFP)
Containers and ships are seen at the port in Nanjing, in China's eastern Jingsu province early on June 9, 2026. (AFP)

China's export growth accelerated in May, buoyed by robust demand for chips, autos and other high-tech goods fueling the global AI boom, providing policymakers some relief as energy price shocks from the Iran conflict weigh on broader demand.

A surge in global AI investment has helped the world's top manufacturer offset the export hit many had expected from the Middle East turmoil. But signs are emerging that stockpiling linked to higher energy costs is fading, with prices rising and overseas buyers starting to run down inventories as they hold out for a ceasefire.

Exports expanded 19.4% from a year earlier in US dollar value terms, customs data showed on Tuesday, outpacing the 14.1% gain in April and a 15% rise tipped by economists.

Imports notched another strong month, climbing 27.4% versus a rise of 25.3% a month prior. Economists had forecast growth of 25%.

"Chip price increases continue to support exports, with memory prices rising 20% month-on-month, pushing integrated circuit export growth to ‌111% for the month," ‌said Xing Zhaopeng, ANZ's senior China strategist.

China's exports of automated data processing equipment soared 66.1% in ‌value ⁠terms year-on-year, high-tech ⁠products rose 50.9% and shipments of cars jumped 39%, the data showed.

"Looking ahead, the AI story is far from over -- chips are rewriting China's trade landscape," Xing added.

The AI boom has driven strong demand for semiconductors powering data centers and advanced electronics, playing to China's manufacturing strengths.

But beyond AI, there are signs of strain in other sectors that suggest momentum may be starting to fade. Furniture exports, for example, rose just 1.9% year-on-year in May, while toy shipments fell 7% and footwear exports dropped 10.4%.

Separate factory activity data also showed a steep drop in new export orders last month from April's two-year peak, when warehouse managers reported "booming" business amid a scramble by foreign factories to lock in supplies.

Strong exports powered ⁠China's $20 trillion economy past forecasts in the first quarter, but pockets of weakness in the export ‌engine have reinforced concerns that fragile domestic demand leaves it exposed to weaker global ‌conditions and increases the likelihood of further policy support.

CHINA'S EXCESS CAPACITY STOKES TRADE FRICTION

Beijing is under growing international pressure to strengthen domestic consumption, as critics ‌warn its heavy reliance on imported inputs and re-exports is distorting trade and squeezing other emerging economies out of higher-value manufacturing.

"Close attention ‌must be paid to the risk of escalation between China and major trading partners such as Europe," said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

The Organization for Economic Cooperation and Development amplified that concern last week, noting in a report that nearly 60% of Chinese firms' "market share gains can be explained by subsidies received."

A new US Federal Reserve paper found that China's trade surplus - measured against global GDP - has topped 1%, well above the peaks ‌Japan and Germany hit in the late 20th century, and shows little sign of narrowing.

China's trade surplus, which topped $1 trillion last year, came in at $105.43 billion in May, up from $84.8 billion ⁠a month prior and from a ⁠forecast of $92.1 billion.

The latest trade figures suggest Chinese industrial overcapacity probably accounts for at least some of the shipments.

Exports to Europe rose 7.6% year-on-year in May, while those to the United States climbed 35.4% and to Southeast Asia increased 24.3%.

Purchases from South Korea surged 83.6%. China is Korea's biggest chips market.

RARE EARTHS FLASHPOINT

China's economic heft is also rippling through oil markets, with the world's top energy buyer surprising traders by holding back purchases. Crude imports in May plunged 29% to their lowest level in eight years, helping temper global prices and partially cushion the energy shock triggered by US President Donald Trump's war in Iran.

A closely watched meeting last month between Trump and Chinese leader Xi Jinping helped cool tensions between the two superpowers but produced no meaningful breakthroughs, whether on tariff disputes or cooperation over ending the Iran conflict.

That said, China's rare earth exports climbed to a four-month high, with the world's top producer shipping 5,490 metric tons of the 17-element group essential for electric vehicles, wind turbines and defense technologies - another flashpoint in Beijing's trade tensions with the West.

China's relative advantages in scale, deep supply chains and industrial capacity leave it well positioned to absorb trade frictions with the West, including proposed US tariff hikes, said Sheana Yue, senior economist at Oxford Economics.

"We still expect exports to be China's primary growth driver in 2026, anchored by continued high-tech and clean-tech products despite war-related headwinds to global demand."

Business

Türkiye, Canada Agree to Launch Exploratory Talks on Free Trade

Türkiye’s Trade Minister Omer Bolat addresses the audience during a signing ceremony in Istanbul, Türkiye, April 29, 2024. (Reuters)
Türkiye’s Trade Minister Omer Bolat addresses the audience during a signing ceremony in Istanbul, Türkiye, April 29, 2024. (Reuters)
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Türkiye, Canada Agree to Launch Exploratory Talks on Free Trade

Türkiye’s Trade Minister Omer Bolat addresses the audience during a signing ceremony in Istanbul, Türkiye, April 29, 2024. (Reuters)
Türkiye’s Trade Minister Omer Bolat addresses the audience during a signing ceremony in Istanbul, Türkiye, April 29, 2024. (Reuters)

The trade ministers of Türkiye and Canada have agreed to launch exploratory discussions aimed at concluding a free trade agreement, according to a joint ministerial statement on Tuesday.

The statement said ‌Turkish Trade ‌Minister Omer ‌Bolat ⁠and Canada's Minister of ⁠International Trade Maninder Sidhu had met to advance the strong and growing economic partnership between the two countries.

"They ⁠agreed to launch ‌exploratory ‌discussions toward a free trade agreement, ‌a step that ‌reflects the ambition of both countries to unlock the full potential of the ‌commercial partnership," the statement said.

It said they identified ⁠energy ⁠as a promising area for expanded cooperation and agreed to explore opportunities in renewable energy, as well as in nuclear energy, including the potential of Canadian CANDU technology to support Türkiye’s diversification goals.

Business

Saudi Arabia, Russia Ink $1.28 Billion Deals to Boost Key Industries

General view of Riyadh, Saudi Arabia. (SPA)
General view of Riyadh, Saudi Arabia. (SPA)
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Saudi Arabia, Russia Ink $1.28 Billion Deals to Boost Key Industries

General view of Riyadh, Saudi Arabia. (SPA)
General view of Riyadh, Saudi Arabia. (SPA)

Saudi Arabia and Russia signed 13 strategic agreements and memoranda of understanding on the sidelines of the St. Petersburg International Economic Forum (SPIEF), the Saudi Press Agency reported on Monday.

The agreements were signed in the presence of Saudi Vice Minister of Environment, Water and Agriculture Eng. Mansour Al-Mushaiti, reflecting the two countries’ commitment to strengthening cooperation across key economic and strategic sectors.

The agreements, valued at $1.28 billion (SAR4.8 billion), aim to expand cooperation and strengthen trade and investment exchange between the two countries.

Al-Mushaiti said the Ministry of Environment, Water and Agriculture has worked to attract leading Russian companies specializing in vital and food-related sectors. He noted that the forum witnessed the signing of a package of high-quality agreements and partnerships between government entities and major private-sector companies from both countries.

The agreements support the Kingdom’s efforts to enhance food security, localize advanced biotechnology, and strengthen supply chain sustainability in line with the objectives of Saudi Vision 2030.

He explained that the agreements and memoranda of understanding signed during the Kingdom’s participation as a guest of honor at the forum covered several strategic sectors, including the manufacturing and localization of veterinary vaccine production to support animal health and biosecurity; the development and propagation of broiler breeds to enhance self-sufficiency and the sustainability of domestic production; securing feed inputs and supply chains to support the stability and growth of the livestock sector.

The agreements also focused on expanding exports of Saudi fish products through strategic partnerships for shrimp and fish exports, in cooperation with Russian companies specializing in import and international distribution.

Al-Mushaiti added that the forum also witnessed the signing of agreements to market and export camel milk and its derivatives to Russian and international markets, promote and export Saudi coffee products, and enhance cooperation and exchange in the soft drinks sector.

He stressed that the Kingdom’s participation in SPIEF reflects the importance of the strategic partnership between Saudi Arabia and Russia and provides an opportunity to exchange expertise and explore investment opportunities in the environment, water, and agriculture sectors.