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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

Saudi Home Ownership Rises to 66 Percent on Decade of Reforms

The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
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Saudi Home Ownership Rises to 66 Percent on Decade of Reforms

The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)
The Nesaj Town project in the Al Wajiha suburb of Dammam, one of the Sakani housing program projects developed in partnership with the private sector. (SPA)

Saudi Arabia has raised home ownership among its citizens to 66.24 percent over the past decade through regulatory reforms, expanded mortgage financing and digital housing platforms under the Kingdom’s Vision 2030 program.

The increase, up from 47 percent before the launch of Vision 2030, reflects a government push to make housing a development priority through reforms aimed at increasing supply, improving financing access and reducing wait times for home-buyers.

Policies under the Housing Program, one of Vision 2030’s initiatives, helped cut what were once years-long waits for support into a streamlined process backed by digital platforms and financing solutions. More than 851,000 Saudi families have become homeowners through support programs, according to official figures.

The housing and real estate sectors have undergone broad changes in recent years, driven by regulatory and legislative reforms, expansion in mortgage finance and wider residential options aimed at creating a more balanced property market.

Vision 2030 initially targeted raising Saudi family home ownership to 60 percent by 2020, a goal it surpassed.

Authorities have also moved to address supply constraints and market distortions, particularly in Riyadh, where recent directives included doubling housing developments north of the capital and lifting restrictions on development across more than 81 square kilometers of land.

Plans also call for supplying between 10,000 and 40,000 serviced residential plots annually over five years at prices capped at SAR 1,500 per square meter.

Additional measures included regulations governing landlord-tenant relations in Riyadh, amendments to the Kingdom’s white land tax system and expanded monitoring of property prices.

Efforts to improve land and property data also pushed Saudi Arabia’s land and property coverage indicator to 53 percent, above a 45 percent target.

Mortgage lending has expanded sharply alongside the reforms. Outstanding residential mortgages to individuals exceeded SAR 907 billion ($241 billion) in the third quarter of 2025.

Housing contracts topped one million, while land financing contracts exceeded 74,000. Self-build contracts surpassed 286,000 last year, while contracts for ready-built homes exceeded 534,000. Off-plan sales contracts topped 114,000.

A broader range of housing products, including land, off-plan developments, ready-built units and self-build options, has expanded choices for buyers, while digital platforms have simplified access and financing mechanisms have sought to ease costs for households.

Furthermore, the reforms have helped reshape a sector once marked by supply shortages and long waiting periods into a more efficient system better able to meet demand.

The housing push has also been tied to broader Vision 2030 goals to improve living standards and increase private-sector participation in development.

Business

LNG Tanker Orders Gain Pace Despite Mixed Outlook from Iran War

A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
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LNG Tanker Orders Gain Pace Despite Mixed Outlook from Iran War

A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)
A drone view shows the Bahamas‑flagged LNG tanker Nohshu Maru sailing through the Panama Canal as it operates at top capacity, with the war in Iran boosting demand from owners and operators of liquefied natural gas vessels, in Gamboa City, Panama, March 24, 2026. (Reuters)

Global orders to build liquefied natural gas carriers (LNGC) are set to rebound this year after a 2025 slump as growing LNG output and vessel fuel efficiency drive demand, industry executives and analysts say.

The rise in orders is offsetting concerns that supply disruptions from the US-Iran war may reduce near-term shipping demand and pressure freight rates.

Since late last year, shipbuilders in South Korea and China have received more orders, with 35 new LNGC builds contracted in the first quarter, according to consultancies Poten & Partners and Drewry.

By comparison, 37 LNGCs were ordered in all of 2025, with a record 171 orders placed in 2022, Drewry data shows. Each tanker costs $250 million-$260 million, and takes over three years to build.

Upcoming LNG production in the US, Africa, Canada and Argentina will generate tanker demand, along with a push towards fuel efficiency and accelerated vessel demolitions, said Pratiksha ‌Negi, Drewry's lead ‌analyst for LNG shipping, with steam turbine and diesel-electric carriers expected to be phased out.

FLEXIBLE ‌US ⁠VOLUMES

The global LNGC ⁠fleet numbers over 700 vessels, which handle the more than 400 million tons per annum (mtpa) of LNG supply.

Some 72 mtpa of new LNG capacity was approved globally last year, and more than 120 mtpa of new US LNG supply is coming to market in the next 3-4 years, said Fraser Carson, principal analyst, global LNG at Wood Mackenzie.

The growth of US LNG and flexible LNG supply creates trading patterns that require more shipping, he said.

US LNG is typically sold on a free-on-board basis with destination flexibility, allowing mid-voyage diversions that can tie up vessels for longer.

Japan's Mitsui O.S.K. Lines, the ⁠world's largest LNGC fleet owner with 107 vessels, expects US LNG supply investment to spur ‌tanker orders, CEO Jotaro Tamura said.

The company plans to grow its ‌LNGC fleet to approximately 150 vessels by around 2035.

Meanwhile, the demolition of steam-propelled LNGCs has accelerated since 2022 to a record ‌15 vessels last year, Drewry data showed, due to poor economics and tighter emissions regulations.

A proposed framework by the ‌International Maritime Organization to cut shipping emissions is also driving demand for new builds, said Uma Dutt, vice president, LNG at global ship management firm Anglo-Eastern, as the industry switches to dual-fuel vessels that can run on LNG.

WAR COMPLICATES OUTLOOK

The Iran war, however, presents conflicting signals for LNG shipping. Supply disruptions are pushing Asian LNG buyers towards alternative sources like Atlantic basin supply, increasing travel distances ‌for ships. It could also boost demand for LNG projects elsewhere, lifting overall demand for more carriers, said Wood Mackenzie's Carson.

But on the other hand, the war ⁠has also disrupted LNG flows through ⁠the Strait of Hormuz and sidelined 12.8 mtpa of Qatari capacity for three to five years, which could curb shipping demand and weigh on freight rates at a time where an "avalanche" of ship supply is already coming, he said.

Qatar, which operates over 100 LNGCs, will add 70-80 new builds over the next 3-4 years while the UAE's ADNOC is expected to double its fleet to 18 within 36 months, said Carson.

"Most of these new build vessels were earmarked to serve under-construction LNG projects that are now facing delays," he said.

"The longer those delays persist, the more likely it is that these ships are offered to the market on sublet arrangements, softening rates considerably."

Poten & Partners and Drewry expect a record 90-100 LNGCs to be delivered this year, up from 79 in 2025.

However, Drewry's Negi said seven of nine LNGCs initially scheduled for delivery this year and now pushed back to 2027-28 are linked to QatarEnergy.

Poten & Partners senior LNG analyst Irwin Yeo said some firms may delay placing big new build orders due to uncertainties triggered by the war.

"Market uncertainty and rising shipbuilding costs, including labor and raw materials amid the current Middle East crisis could deter some from placing orders."

Business

Saudi Banks Post Record Quarterly Profits of $6.4 Billion

A view of the King Abdullah Financial District in Riyadh. (SPA)
A view of the King Abdullah Financial District in Riyadh. (SPA)
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Saudi Banks Post Record Quarterly Profits of $6.4 Billion

A view of the King Abdullah Financial District in Riyadh. (SPA)
A view of the King Abdullah Financial District in Riyadh. (SPA)

Saudi Arabia’s banking sector reinforced its role as a pillar of the national economy, posting a record start to 2026 with unprecedented first-quarter profits.

The Kingdom’s 10 listed banks posted combined net profit of $6.4 billion (SAR 23.95 billion) in the first quarter, up 7.6 percent from a year earlier, underscoring the sector’s ability to convert momentum generated by Vision 2030 into sustained financial gains.

The performance was driven by strong results from major lenders including Saudi National Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, the Saudi Investment Bank and Bank AlJazira.

Al Rajhi Bank led the sector, with profit rising 14.3 percent to SAR 6.75 billion. The bank attributed the increase to an 18.4 percent rise in net financing and investment income, stronger returns on financing and investment, a 14.4 percent increase in operating income, higher banking fees and foreign exchange income, and lower depreciation expenses.

The Saudi National Bank ranked second, reporting net profit of SAR 6.42 billion, up 6.66 percent. It said growth was driven by a 3.1 percent rise in financing and investment income to SAR 14.8 billion, supported by expansion in its lending portfolio, higher operating income and lower operating expenses, including reduced expected credit-loss provisions.

Riyad Bank held third place with profit of nearly SAR 2.61 billion, up 5.1 percent. The lender cited higher trading income and stronger special commission income, along with lower losses on non-trading investment sales. Lower impairment charges also helped trim operating expenses.

On a quarterly basis, the sector also set a new high, with first-quarter profit up 1.26 percent from the fourth quarter of 2025, when earnings reached $6.31 billion (SAR 23.66 billion).

Structural drivers

Financial markets analyst and member of the Saudi Economic Association Sulaiman Al-Humaid Al-Khaldi told Asharq Al-Awsat the record performance was driven by four main factors: elevated interest rates supporting margins, growth in mortgage and corporate lending linked to mega-projects, improving asset quality and lower provisioning, and government spending tied to Vision 2030 that created new financing opportunities.

The results reflected the resilience of Saudi banking, led by the Al Rajhi and Saudi National Bank, he underlined.

“This performance confirms the strength of the Kingdom’s banking model and its ability to benefit from a positive economic environment, with financing demand from individuals and companies remaining strong,” Al-Khaldi stated.

The sector earned more than SAR 95 billion in 2025, up 16 percent from the previous year, and profits could top SAR 100 billion ($26.6 billion) in 2026, according to the financial analyst.

He added that while possible interest-rate cuts could pressure margins, stronger financing demand and government capital spending should remain key growth drivers.

Economic momentum

Economic analyst and Founder and CEO of G.WORLD Mohamed Hamdy Omar said the record profits reflected the banking sector’s role as a major beneficiary of domestic economic growth.

He told Asharq Al-Awsat that the 7.6 percent rise in profit was driven not by temporary cyclical factors but by sustainable structural trends, notably continued credit growth linked to Vision 2030 projects such as NEOM, alongside expanding mortgage and retail lending.

Banks had also benefited from stronger net interest margins, helped by faster asset repricing than liabilities in recent periods, Omar remarked.

Moreover, diversified revenue streams reduced reliance on interest income, particularly through fees from payments, asset management and digital services, while cost discipline and improving asset quality - reflected in lower defaults and reduced credit provisions - also supported profitability. Digital transformation was delivering measurable gains in operational efficiency, particularly at larger banks.

Omar expected the sector to maintain strong performance in 2026, supported by financing demand and government capital expenditure, although falling rates could gradually pressure profit margins.

Improving conditions in the non-oil economy should also support asset quality, leaving the sector in a position of strength even as growth shifts to a more sustainable pace.