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SCAI CEO to Asharq Al-Awsat: AI Boosts Saudi Arabia’s Economic Future

AI is expected to contribute to 12 percent of Saudi Arabia GDP by 2030. (SPA)
AI is expected to contribute to 12 percent of Saudi Arabia GDP by 2030. (SPA)
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SCAI CEO to Asharq Al-Awsat: AI Boosts Saudi Arabia’s Economic Future

AI is expected to contribute to 12 percent of Saudi Arabia GDP by 2030. (SPA)
AI is expected to contribute to 12 percent of Saudi Arabia GDP by 2030. (SPA)

The Saudi Company for Artificial Intelligence (SCAI), wholly owned by the Saudi Public Investment Fund (PIF), is leading efforts to build a world class technological system, paving the way for achieving economic grown driven by artificial intelligence (AI).

Indications show that the sector’s contributions to the Saudi GDP will grow, SCAI CEO George Nazi told Asharq Al-Awsat.

SCAI was established in 2021 as PIF’s arm in the AI and emerging technologies sector. It aims to support PIF’s strategy and national priorities in innovating within the technology sector and positioning Saudi Arabia as a globally competitive hub for advanced technologies.

Nazi stressed that the Saudi economy is witnessing strategic preparations to stay abreast the AI revolution. The preparations are being backed by several parties, led by SCAI, whose investments help in developing technological talents and support AI initiatives in small and medium enterprises.

AI is expected to contribute to 12 percent of Saudi Arabia GDP by 2030 and the AI sector is set to grow at an annual rate of 29 percent, revealed a report by the Saudi Authority for Data and Artificial Intelligence.

Saudi Arabia has achieved global positions in international AI indices. It ranked 14th globally out of 83 countries and the first in the Arab world in the Global AI Index.

Saudi Company for Artificial Intelligence (SCAI) CEO George Nazi. (Asharq Al-Awsat)

In terms of developing digital infrastructure, Nazi said SCAI is helping in finding solid foundations for the growth and prosperity of AI, which would shed light of Saudi Arabia’s readiness for this technological transformation.

Moreover, SCAI supports the Kingdom’s Vision 2030 in dedicating AI capabilities in diversifying and boosting the economy in vital sectors, such as healthcare, energy and education. It is also working on consolidating the AI culture in society.

SCAI is playing a pivotal role in bolstering strategic partnerships with major global technology companies to create an environment that supports innovation in the Kingdom and therefore bolsters its global position as a leading force in the field, added Nazi.

Nazi also highlighted SCAI’s collaboration with the King Abdullah Financial District (KAFD) project that aims to set solutions for smart cities through advanced projects in transportation management.

The partnership is achieving transformative results and developing the smart traffic system that uses AI to smooth and ease traffic, he explained.

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Business

Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
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Gold Falls as Higher Treasury Yields, Fed Rate Hike Bets Weigh

Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)
Gold bracelets and necklaces displayed for sale in a gold shop at Istanbul's Grand Bazaar (AFP)

Gold fell for a third consecutive session on Wednesday, as rising US Treasury yields and growing bets that the Federal Reserve will raise interest rates pressured the non-yielding metal.

Spot gold was down 0.8% at $3,974.75 per ounce as of 0849 GMT, after touching its lowest level since last November at $3,942.99 in the previous session. US gold futures for August delivery lost 1.3% to $3,987.70/oz.

The yellow metal ‌on Tuesday recorded ‌its first quarterly loss since January 2024, Reuters reported.

A selloff ‌in ⁠US Treasuries on ⁠Tuesday pushed the benchmark 10-year yield up as much as 9 basis points before it backed off the highs. By Wednesday, yields were rising again, up 4 bps at 4.465%, outpacing increases in euro zone bond yields.

A stronger US dollar makes bullion less affordable for overseas buyers.

"The weakness is a bit driven by comments from ⁠Fed's Hammack, suggesting a rate hike might be ‌needed and market participants pricing in ‌a bit more rate hikes for this year," said UBS analyst Giovanni Staunovo. Federal ‌Reserve Bank of Cleveland President Beth Hammack said on Tuesday ‌she may advocate for higher rates if inflation pressures don’t moderate. According to CME FedWatch tool, traders see a nearly 67% chance of a rate hike by September.

Expectations for more hikes are not helping investment demand, and ‌ETF holdings have seen renewed outflows in recent days, said Staunovo, noting that price volatility is ⁠expected around economic ⁠data releases this week.

June ADP employment data, due at 1215 GMT, and Thursday's nonfarm payrolls report could give further clues on the Fed's policy path.

Markets will also closely watch the European Central Bank's annual Sintra conference on Wednesday, where Fed Chair Kevin Warsh and ECB President Christine Lagarde are due to speak. On the geopolitical front, concerns persisted over the prospects for US-Iran diplomacy after Tehran said it would not meet senior US envoys who travelled to the region following the recent outbreak of hostilities.

Spot silver fell 1.4% to $57.75 per ounce.

Platinum slipped 0.6% to $1,542.70, after hitting its lowest point since November. Palladium slid 1.4% to $1,187.01.

Business

Turkish Manufacturing Contracts, Hit by Iran War Disruption, PMI Shows

A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
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Turkish Manufacturing Contracts, Hit by Iran War Disruption, PMI Shows

A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)
A full moon rises over the Galata Tower in Istanbul, Türkiye, June 29, 2026. (Reuters)

Türkiye's manufacturing ‌sector contracted in June as the war in the Middle East disrupted demand and supply, a business survey showed on Wednesday.

The Istanbul Chamber of Industry's Türkiye Manufacturing Purchasing Managers' Index, compiled by S&P Global, fell to 47.1 in June from 49.8 in May. The 50-mark separates growth from contraction.

Output returned to decline after rising slightly in May, with firms ‌citing market uncertainty ‌linked to the conflict ‌in ⁠the Middle East, softer ⁠new orders and higher prices.

Demand weakened further, with total new orders posting a solid decline and new export business also falling again after expanding in May.

Companies also cut purchasing activity, while employment continued to be scaled ⁠back. Suppliers' delivery times lengthened again, although ‌the deterioration was ‌the least marked since February.

There were some signs ‌of easing price pressures. Input cost inflation slowed ‌for a second straight month to its weakest since November, while output price inflation eased to its lowest level so far this year.

The June ‌survey reversed some of May's improvement and extended the sector's downturn to ⁠27 ⁠consecutive months. Firms also reduced stocks of purchases and finished goods amid muted demand conditions, the panel showed.

"The Turkish manufacturing sector took a step back in June, posting a renewed softening of production amid muted new orders. Anecdotal evidence from the survey indicated that the war in the Middle East continued to be the principal cause of the challenges facing firms," said Andrew Harker, economics director at S&P Global Market Intelligence.

Business

Oil Edges Higher as Breakdown in Iran-US Talks Raises Supply Concerns

FILE PHOTO: A pumpjack, used to help lift oil from a well, in the Permian basin near Midland, Texas, US, October 8, 2025. REUTERS/Arathy Somasekhar/File Photo
FILE PHOTO: A pumpjack, used to help lift oil from a well, in the Permian basin near Midland, Texas, US, October 8, 2025. REUTERS/Arathy Somasekhar/File Photo
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Oil Edges Higher as Breakdown in Iran-US Talks Raises Supply Concerns

FILE PHOTO: A pumpjack, used to help lift oil from a well, in the Permian basin near Midland, Texas, US, October 8, 2025. REUTERS/Arathy Somasekhar/File Photo
FILE PHOTO: A pumpjack, used to help lift oil from a well, in the Permian basin near Midland, Texas, US, October 8, 2025. REUTERS/Arathy Somasekhar/File Photo

Oil prices ticked higher on Wednesday on concerns a breakdown in talks between Iran and the US for a final agreement to end their war may extend supply disruptions in the key Middle East producing region.

Brent futures rose 14 cents, or 0.19%, to $73.09 a barrel at 0644 GMT, while US West Texas Intermediate (WTI) crude was up 11 cents, or 0.16%, to $69.61 a barrel, Reuters said.

"Hormuz continues to reopen but it's patchy, unpredictable, and not fully transparent,” said Vandana Hari, founder ‌of oil market analysis ‌provider Vanda Insights.

"Unless there is a fresh understanding ‌between ⁠Washington and Tehran, the ⁠market may wait and watch for sustained peace and quiet before crude resumes bearish momentum."

US President Donald Trump's son-in-law Jared Kushner and envoy Steve Witkoff arrived in Doha for what the White House described as "high level" talks on Tuesday, but Iran and host Qatar said they would meet with mediators, rather than the Iranians themselves.

Qatar said Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani was among those to meet with ⁠Witkoff and Kushner. Brent fell by around $45 a barrel in ‌the second quarter of this year, its largest ‌quarterly loss since the global financial crisis in 2008. US crude futures meanwhile fell by ‌around $31, their largest quarterly loss since 2020, when the COVID-19 pandemic crushed global oil ‌demand.

The declines followed progress toward ending the Middle East conflict, after sharp gains in March triggered by the outbreak in hostilities.

Analysts have cut their 2026 oil price forecasts for the first time since the Iran war began, after five straight monthly increases, as the ‌reopening of the Strait of Hormuz eased concerns over prolonged supply disruptions, a Reuters poll showed on Tuesday.

US Vice President ⁠JD Vance said ⁠Iran would be prevented from charging tolls through the strait, telling The Michael Knowles Show, "This is not going to end in a place where the Iranians are collecting tolls on ships going through the Strait of Hormuz."

Tanker traffic through the critical waterway has started to recover, with Vance claiming that oil flows through the strait had been restored to pre-war levels.

Meanwhile, US crude oil inventories fell again last week while gasoline stocks also declined, market sources said, citing data from the American Petroleum Institute released on Tuesday.

Crude stocks fell by 6.1 million barrels in the week ended June 26, the sources said on condition of anonymity.

Official US oil stock data from the Energy Information Administration will be released at 10:30 a.m. EDT (1430 GMT) on Wednesday.