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ServiceNow CEO: Saudi Tech Boom, Innovation Drive Investment

ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
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ServiceNow CEO: Saudi Tech Boom, Innovation Drive Investment

ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)

ServiceNow CEO Bill McDermott has praised Saudi Arabia’s impressive innovation drive, led by its ambitious tech initiatives.

He cited Saudi Minister of Communications and Information Technology Engineer Abdullah Alswaha’s remarks at the LEAP 24 conference, noting the Kingdom’s rapid digital growth and aspirations to become the region’s top digital market.

McDermott, speaking to Asharq Al-Awsat on the sidelines of LEAP 24, praised the enthusiasm of 230,000 young Saudis at the conference, all dedicated to advancing the country’s digital economy.

He attributed their motivation to the supportive environment fostered by Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia, and his team.

In an interview with Asharq Al-Awsat, McDermott underscored the importance of such factors in ensuring success in the Kingdom.

Investing in Saudi Arabia

Explaining why ServiceNow is investing in Saudi Arabia, McDermott said the Kingdom’s booming market and tech innovation promise significant progress.

He also revealed the US-based tech company inking several deals at LEAP 24. One such deal is a partnership with the Garage project, supporting startups in Riyadh.

McDermott said his company is looking to train Saudi youth on its platform, hire graduates, and open job opportunities.

Moreover, ServiceNow is also establishing a new regional headquarters in Riyadh and plans to invest $500 million and open a data center to support the Kingdom’s growth.

He conveyed his company’s excitement to be part of Saudi Arabia’s journey.

AI revolution

McDermott sees the AI revolution as significant as the iPhone’s launch. He said his company is using AI to drive digital transformation in the tech and information industry’s largest market.

He explained that ServiceNow, a top software firm in digital workflow management, is now incorporating AI into its operations for digital transformation.

According to McDermott, companies are at a crucial moment with AI.

He revealed that ServiceNow is now working to combine cloud computing, digital transformation, and modern AI.

ServiceNow’s ambitions

McDermott highlighted ServiceNow’s presence in Saudi Arabia since 2011, noting ongoing projects and collaborations, particularly during the coronavirus pandemic, such as transforming business processes with the Ministry of Justice and bolstering employee services with the Ministry of Human Resources and Social Development.

He highlighted partnerships with firms like Deloitte for public sector digital transformation and teased upcoming projects.

Moreover, McDermott expressed his goal of making Saudi Arabia a global leader in the sector by prioritizing youth training, business innovation, and AI development to improve services and user experiences.

He aims to establish ServiceNow as the leading enterprise software company of the 21st century and sees Saudi Arabia as a key partner in achieving this goal, anticipating a positive embrace of innovation to boost millions of lives.

Saudi Arabia: A major player in global tech

When asked about Saudi Arabia’s role in global technology, McDermott confidently stated that the Kingdom won't just be a player; it will be a leader in global tech.

This is a crucial moment for the Kingdom, and that strong steps are needed to boost the sector, he remarked.

Many challenges exist, but with ServiceNow’s AI platform, matters can be simplified, he went on to say.

McDermott said his company is looking to streamline workflows and enhance user experiences creatively.

Noting constant improvement, he revealed that users can now talk to the system naturally and easily analyze complex data, dubbing it a big leap forward.

Tech’s new worries

When asked about concerns over new AI outsmarting humans, he stressed that while AI could surpass humans in some areas, the key is ensuring it serves humanity.

Technology’s main purpose is to improve human lives, stressed McDermott, adding that the risk is humans being controlled by tech.

Humans must be kept in charge, affirmed McDermott.

He recalled a 1966 Time magazine article predicting computers would take over most jobs, but today, there are 90 million tech jobs in the US alone.

Furthermore, he revealed that ServiceNow is working on a vast linguistic database to boost AI responses, using carefully collected data.

Great strides forward

McDermott wrapped up by lauding the impressive advancements in the Kingdom, saying that he is truly impressed by Crown Prince Mohammed’s efforts for women’s rights.

This is crucial for ServiceNow, where half of the staff will be women, he noted.

Half of ServiceNow’s leaders are already women.

McDermott stressed that his company plans to uphold this balance because this approach fosters remarkable productivity.

When workplaces promote diversity, fairness, and inclusion, it boosts success, he emphasized.

Saudi Arabia even outshines Silicon Valley in embracing this approach, said McDermott.

Offering advice to Saudi talents, McDermott said embracing the present is key.

With AI advancing rapidly, there are vast opportunities, he added.

ServiceNow provides a top platform in this field, offering job openings in the Kingdom and beyond.

Inviting Saudis to join his company, McDermott revealed that ServiceNow is partnering with the Saudi Digital Academy to train countless young people.

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Business

At Heart of the Crisis, Gulf States Act as Global Shock Absorbers

The flag of the Gulf Cooperation Council General Secretariat. (Asharq Al-Awsat)
The flag of the Gulf Cooperation Council General Secretariat. (Asharq Al-Awsat)
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At Heart of the Crisis, Gulf States Act as Global Shock Absorbers

The flag of the Gulf Cooperation Council General Secretariat. (Asharq Al-Awsat)
The flag of the Gulf Cooperation Council General Secretariat. (Asharq Al-Awsat)

As the US-Israeli war against Iran entered its 18th day, fast-moving geopolitical shifts in the Middle East have again thrust Gulf Cooperation Council (GCC) states into focus as a pillar of global economic stability, particularly in energy markets, international trade, and supply chains.

As supply chains strain under the weight of conflict, GCC economies are emerging as a stabilizing force in global trade and energy, backed by a $2.3 trillion economic bloc. Ranked ninth globally, the region is no longer just an energy exporter, but a major financial and investment center in the international system.

That role is heightened by the Gulf’s geography, linking some of the world’s most critical trade and energy routes, especially the Strait of Hormuz. Disruption to the vital passage has fueled fears of surging energy prices and supply chain breakdowns.

Hamza Dweik, head of trading for the Middle East and North Africa at Saxo Bank, said the Gulf’s stabilizing role goes beyond theory, with direct impact on market dynamics.

The region sits at the crossroads of key energy arteries, giving it unusual capacity to steady markets or amplify volatility when risks rise, Dweik told Asharq Al-Awsat.

He pointed to the Strait of Hormuz, one of the world’s most sensitive energy chokepoints, where oil flows averaged about 20 million barrels per day in 2024, roughly 20% of global petroleum liquids consumption.

Oil market shock absorbers

From an energy standpoint, Dweik said the global economy relies on Gulf states for two core functions: steady oil supplies and the ability to absorb market shocks.

Spare production capacity concentrated in Gulf producers within OPEC+ allows markets to rebalance during disruptions, making the region a key stabilizer in global oil markets.

The Gulf’s influence extends beyond oil into liquefied natural gas. Qatar accounted for about 18.8% of global LNG exports in 2024, according to International Gas Union data, underscoring how gas prices are exposed to regional disruptions.

Trade and supply chains

The Gulf’s role also spans global trade and logistics, as international supply chains show clear signs of fragility.

Rising risks along maritime routes tied to the region, including the Red Sea and the Suez Canal, are not only delaying shipments but also pushing up transport and insurance costs, adding to global inflationary pressure.

The United Nations Conference on Trade and Development (UNCTAD) has warned that disruptions in key shipping corridors can raise freight costs and curb global trade when vessels are forced to reroute.

Global impact

Vijay Valecha, Chief Investment Officer at Century Financial, said Gulf states are central to global economic stability given their position at the heart of major energy and trade routes.

About 27% of global seaborne oil trade passes through the Strait of Hormuz, along with a nearly similar share of LNG supplies, meaning any disruption there amounts to a global supply shock, he told Asharq Al-Awsat.

Since the war began, shipping traffic through the strait has dropped sharply, prompting Gulf states to act quickly to safeguard energy flows to global markets.

Valecha said Gulf producers have turned to alternative pipelines to bypass the Strait of Hormuz and maintain exports.

Saudi Arabia’s East-West pipeline runs nearly 1,200 km from Abqaiq to the Red Sea port of Yanbu, with a capacity of about 7 million barrels per day.

The United Arab Emirates operates the Habshan-Fujairah pipeline, which moves crude from inland fields to Fujairah on the Gulf of Oman, with a capacity of about 1.5 million barrels per day.

But these alternatives cannot fully replace volumes that typically pass through Hormuz, underscoring the strait’s critical importance to global markets.

Global investments

Beyond energy, Gulf sovereign wealth funds play a key role in stabilizing the global financial system, with combined assets of about $5.6 trillion, or roughly 36% of the world’s sovereign wealth fund assets.

Investments span equities, bonds, and infrastructure worldwide, supporting capital flows and financial stability.

However, Valecha said prolonged tensions could push some funds to redirect investments inward or toward defense spending, with potential knock-on effects for global markets.

The impact of the tensions is already visible. Oil prices have swung sharply since the war began, while maritime shipping costs have climbed.

International Monetary Fund estimates show that a 10% rise in energy prices over a full year could lift global inflation by about 40 basis points and slow global growth by between 0.1 and 0.2 percentage points.

Together, these dynamics underscore a shift in the Gulf’s global role. GCC states are no longer just energy suppliers, but a central pillar of global economic stability, across oil and gas, trade, and investment.

As geopolitical and economic shifts deepen, the region’s importance is set to grow, not only as an energy hub but as a key anchor for the global economy in times of crisis.

Business

Yuan Versus the Dollar: Will Hormuz Tensions Reshape the Global Monetary Order?

A liquefied petroleum gas tanker anchored in the Strait of Hormuz (Reuters) 
A liquefied petroleum gas tanker anchored in the Strait of Hormuz (Reuters) 
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Yuan Versus the Dollar: Will Hormuz Tensions Reshape the Global Monetary Order?

A liquefied petroleum gas tanker anchored in the Strait of Hormuz (Reuters) 
A liquefied petroleum gas tanker anchored in the Strait of Hormuz (Reuters) 

As geopolitical tensions escalate around the Strait of Hormuz, Iran has floated a proposal to link the passage of energy shipments to payments in currencies other than the US dollar.

The move appears designed to pressure global power centers. While it stops short of a declared currency war, it highlights growing international efforts to reduce dependence on the dollar in energy markets.

This comes as US President Donald Trump calls for an international coalition to secure the strait, casting doubt on Iran’s willingness to negotiate. Diplomacy remains stalled as the conflict involving Israel, the United States, and Iran enters its seventeenth day.

Iranian Foreign Minister Abbas Araghchi has denied any moves toward negotiations or a ceasefire. Trump has also warned that NATO could face a “very bad” future if US allies fail to act to reopen the waterway, even as Israeli strikes on Iranian military infrastructure continue.

Dr. Abdulaziz bin Sager, Chairman of the Gulf Research Center, said shifts in energy markets reflect a broader global trend toward currency diversification in international transactions. He argued that Iran’s proposal signals a growing willingness to explore alternatives amid geopolitical change, accelerating debate over the stability of currencies used in energy trade.

According to bin Sager, this is part of a gradual restructuring of the global financial system, particularly as major economies such as China and Russia expand the use of their national currencies in bilateral trade. He pointed to the decline in the dollar’s share of global reserves—from 65.3 percent in 2016 to 59.3 percent in 2024—as evidence of a steady shift.

He noted that countries are seeking to manage geopolitical risk and adopt more flexible economic strategies, reflecting a broader move toward a multipolar monetary system. China promotes the yuan through the Belt and Road Initiative, while Russia advances its currency through bilateral agreements.

Dr. Saeed Sallam, Director of the Vision International Center for Strategic Studies, said that Iran’s demand as limited in immediate practical impact but significant in long-term symbolic terms. He warned that it could increase volatility and uncertainty in energy markets, complicate transactions due to limited yuan liquidity, and drive up maritime insurance and transport costs by 20 to 30 percent along alternative routes.

Rather than stabilizing markets, Sallam argued, the move could fragment oil trade. Limited volumes might be settled in yuan and routed through Hormuz to China, while the rest are diverted via more expensive routes. The result could be sharp increases in gas, fertilizer, and food prices, raising the risk of recession in Asian and European economies.

He continued that China is pursuing a strategy of careful balance. While it may accept limited yuan-based transactions to secure oil imports, it is unlikely to support escalation that threatens stability in the strait, through which roughly 40 percent of its imports pass. Russia, meanwhile, uses the proposal symbolically within the BRICS framework to challenge Washington, though stable energy markets remain essential to its export revenues.

Sallam concluded that Iran’s proposal may accelerate the rhetoric of de-dollarization and contribute to price shocks, but its real impact remains constrained by diplomatic and practical limits. The core issue, he stressed, is not the currency used but whether the Strait of Hormuz remains open.

For now, the dollar retains its dominant position in global energy trade, though that status could be tested by rapidly evolving military and diplomatic developments.

 

 

Business

World Shares Are Mixed and US Futures Slip as Brent Hovers Above $100 a Barrel

A person walks near a stock price monitor showing Nikkei index at a security company Tuesday, March 17, 2026, in Tokyo. (AP)
A person walks near a stock price monitor showing Nikkei index at a security company Tuesday, March 17, 2026, in Tokyo. (AP)
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World Shares Are Mixed and US Futures Slip as Brent Hovers Above $100 a Barrel

A person walks near a stock price monitor showing Nikkei index at a security company Tuesday, March 17, 2026, in Tokyo. (AP)
A person walks near a stock price monitor showing Nikkei index at a security company Tuesday, March 17, 2026, in Tokyo. (AP)

Shares were mixed in Europe and Asia on Tuesday after a drop in oil prices helped send the US stock market to its best day since the war in Iran began.

The reprieve in prices for crude was short-lived, with Brent crude climbing nearly 4% early Tuesday to $104.13 a barrel. US benchmark crude also climbed, to $97.53 per barrel after dipping to about $93 on Monday.

US futures fell back, with the contracts for the S&P 500 and the Dow Jones Industrial Average down 0.3%.

In Asian trading, Tokyo's Nikkei 225 gave up early gains to slip 0.1% to 53,700.39 and the Kospi in South Korea jumped 1.6% to 5,640.48.

Hong Kong's Hang Seng added 0.1% to 25,668.54, while the Shanghai Composite index dropped 0.9% to 4,049.91.

In Australia, the S&P/ASX 200 gained 0.4% to 8,614.30 after the central bank hiked its benchmark interest rate to 4.1%.

Citing higher fuel prices, the Reserve Bank of Australia on Tuesday lifted the cash rate from 3.85% which it set at its Feb. 3 meeting in response to surging inflation. That rise was Australia’s first since November 2023.

Taiwan's Taiex rose 1.5% and India's Sensex picked up 0.6%.

On Monday, the S&P 500 climbed 1% for its biggest gain in five weeks. The Dow Jones Industrial Average added 0.8% and the Nasdaq composite jumped 1.2%.

The driver for markets has been oil prices, which have spiked from roughly $70 before the United States and Israel began their attacks on Iran. In response, Iran has nearly halted traffic through the narrow Strait of Hormuz, where a fifth of the world’s oil typically sails from the Gulf to customers worldwide. That has oil producers cutting production because their crude has nowhere to go.

The worry in financial markets is that if the strait remains closed for a long time, it could keep enough oil off the market to drive inflation up to a debilitating level for the global economy.

“The panic is still there, just dialed down a notch as crude slipped off the boil. Brent easing back toward $100 flipped the tape from bunker mentality to opportunistic risk-taking in a heartbeat,” Stephen Innes of SPI Asset Management said in a commentary.

President Donald Trump over the weekend demanded that other countries hurt by the closure of the Strait of Hormuz “take care of that passage” and said his country “will help - A LOT!”

The US and Israel have kept pummeling what they describe as military targets in Iran’s capital, and Israel stepped up its campaign against Iran-backed Hezbollah in Lebanon. More than 1 million people have been displaced in Lebanon — roughly 20% of the nation’s population — as UN peacekeepers say Israel is massing ground troops along the border.

Uncertainty over the war's scope and duration have roiled financial markets since the war began just over two weeks ago, though markets have a track record of bouncing back relatively quickly from military conflicts. Many professional investors are expecting that to be the case again, if oil prices don't go too high for too long. That has helped keep US stock prices near their record levels.

Higher prices are complicating the Federal Reserve's mission of balancing growth and inflation as President Donald Trump pushes the central bank to slash interest rates. Traders do not expect the Fed to cut rates at its policy meeting that wraps up on Wednesday.

Nvidia, whose chips are powering much of the world’s move into artificial-intelligence technology rose 1.6% on Monday as its CEO, Jensen Huang, talked up AI's possibilities at a conference, saying he foresaw $1 trillion in demand for AI chips through 2027. It was the strongest single force lifting the S&P 500.

In other dealings early Tuesday, the US dollar rose to 159.18 Japanese yen from 159.05 yen. The euro slipped to $1.1498 from $1.1507.