Cisco to Asharq Al-Awsat: Smart Networks are Driving Saudi Arabia’s Digital Transformation

Tarek Al-Turki, Director of Solutions Engineering at Cisco Saudi Arabia (Cisco)
Tarek Al-Turki, Director of Solutions Engineering at Cisco Saudi Arabia (Cisco)
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Cisco to Asharq Al-Awsat: Smart Networks are Driving Saudi Arabia’s Digital Transformation

Tarek Al-Turki, Director of Solutions Engineering at Cisco Saudi Arabia (Cisco)
Tarek Al-Turki, Director of Solutions Engineering at Cisco Saudi Arabia (Cisco)

As Saudi Arabia advances toward the ambitious goals of Vision 2030, targeting economic diversification and technological leadership, enterprise networks are emerging as a strategic pillar of this transformation.

More than a communications tool, they are the backbone enabling innovation, boosting operational efficiency, and supporting the adoption of advanced technologies such as artificial intelligence.

A global Cisco study estimates that network outages cost the world economy $160 billion annually. In Saudi Arabia, the stakes are even higher. Tarek Al-Turki, Director of Solutions Engineering at Cisco Saudi Arabia, told Asharq Al-Awsat that 73 percent of leading IT firms in the Kingdom reported major outages over the past two years due to congestion, cyberattacks, and configuration errors.

In response, 94 percent have increased network budgets to invest in smarter, more secure infrastructures, which are aimed at reducing losses, strengthening trust, and ensuring business continuity.

“Enterprise networks are not just a service,” Al-Turki explained. “They are a strategic enabler of innovation and digitization under Vision 2030, delivering speed, security, and low latency for technologies such as AI.”

Networks for the AI Era

With the rise of agent-based AI, where autonomous programs can execute entire processes, networks face unprecedented challenges in speed, scale, and security. Cisco is developing AI-powered networking tools designed to make systems faster, more efficient, and more secure. In partnership with companies like Nvidia, it is working on networks capable of supporting billions of AI agents globally without compromising safety.

Local vs. Cloud Infrastructure

Cisco’s research shows that 67 percent of Saudi data centers do not yet meet current AI requirements. As a result, 90 percent of technology leaders plan to expand capacity through either local or cloud-based infrastructure.

“Today’s networks need significant upgrades in processing, transport, and protection to support GPUs and end-to-end data security,” Al-Turki said.

He added that 62 percent of Saudi IT leaders view fragmented systems as a serious obstacle, and argued that automation, network intelligence, and centralized control are the solutions.

“Imagine a single dashboard that lets you see and manage everything,” he said, pointing to the future of integrated, intelligent enterprise networks.

Automation in the Modern Workplace

In an era of hybrid work and AI, constant manual adjustments are no longer sustainable. According to Cisco, 97 percent of IT leaders in the Kingdom expect automation to bring major improvements in efficiency and error reduction. Automation also strengthens cybersecurity by rapidly enforcing policies, detecting threats early, and enabling networks to scale seamlessly.

Nearly all business leaders in Saudi Arabia - 98 percent - consider secure networks essential for growth. Yet 91 percent of companies faced cyber incidents last year, often fueled by AI-driven threats. Al-Turki noted that 93 percent of organizations are already deploying AI to enhance security. Cisco itself is contributing with tools such as AI Defense and a local security data center that provides services including Secure Access and AI-powered Umbrella DNS.

Balancing Performance and Sustainability

AI applications consume vast amounts of energy, making sustainability a central concern. Cisco’s solutions, such as Cisco Silicon One, deliver high-performance, energy-efficient chips that combine environmental responsibility with technical innovation.

“With 90 percent of technology leaders in the Kingdom planning to expand infrastructure, the direction is clear: pairing sustainability with innovation,” Al-Turki said.

He stressed that public-private partnerships are vital to achieving Vision 2030. Through its Country Digital Acceleration program, Cisco has implemented more than 20 national projects since 2016, including broadband expansion, and is now working to connect and secure Saudi Arabia’s emerging AI ecosystem.

Ensuring Continuity in Critical Sectors

As reliance on networks grows in healthcare, energy, and finance, continuity has become a necessity. Cisco points to a framework built on zero-trust security, automated threat detection, backup systems, and continuous workforce training as key to reducing human error and ensuring resilience.

From running AI applications to safeguarding sensitive data, smart networks are proving to be a cornerstone of Saudi Arabia’s digital transformation.

“Networks today do more than support business. They lead it, driving growth, resilience, and innovation,” Al-Turki added.



China Energy Imports Drop in April Amid Iran War as Fuel Exports Hit Decade Low

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
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China Energy Imports Drop in April Amid Iran War as Fuel Exports Hit Decade Low

Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song
Oil and gas tanks are seen at an oil warehouse at a port in Zhuhai, China October 22, 2018. REUTERS/Aly Song

China's oil imports fell to the lowest level in almost four years in April as the closure of the Strait of Hormuz choked off supplies to the world's largest oil importer.

Crude oil imports fell 20% in April to 38.5 million metric tons compared to a year earlier, hitting their lowest level since July 2022, according to customs data released on Saturday.

China imports roughly half of its crude oil from the Middle East, where the closure of the strait has slashed the number of tankers ⁠carrying oil and ⁠refined products to the world.

Saturday's data from China does not distinguish between oil arriving by sea and oil coming in via pipeline. Data from ship-tracking firm Kpler, however, puts seaborne crude imports at 8.03 million barrels per day, also the lowest since July 2022, Reuters reported.

Despite the decline in imports, ⁠ship tracker Vortexa estimates crude inventories rose by 17 million barrels in April, although it said those would fall in May.

The disruption in the Middle East has led China to tightly manage exports of refined products such as gasoline or jet fuel to protect its domestic market.

That policy drove refined oil product exports for April down to their lowest in roughly a decade at 3.1 million tons, down by about a third since March.

This may still overestimate ⁠how ⁠much is going to customers in Asia and elsewhere because the data includes shipments to Hong Kong, typically a major destination for China's refined products and excluded from the export controls.

Natural gas imports also fell by 13% to 8.42 million tons, although the data does not separate seaborne liquefied natural gas (LNG) from gas piped overland. China imports significant quantities of LNG from the Middle East Gulf.

China's crude oil imports for the first four months of the year are still tracking 1.3% above last year's level at 185.3 million tons.


Germany's March Exports Rose Despite Fall of Industrial Output

A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
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Germany's March Exports Rose Despite Fall of Industrial Output

A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay
A general view of the Port of Hamburg, in Hamburg, Germany, October 9, 2023. REUTERS/Wolfgang Rattay

German exports rose unexpectedly in March, official data showed on Friday, lifted by higher demand from Europe, as industrial output fell despite a forecast rise, dampened by a drop in energy production.

German exports rose 0.5% in March over the previous month, boosted by an increase of 3.4% in shipments to other European Union countries, the federal statistics office said. Analysts polled by Reuters had expected a 1.7% decrease.

“The string of positive figures ⁠continues,” said VP Bank economist Thomas Gitzel, after the statistics office reported on Thursday higher-than-expected growth in March industrial orders.

The rise in new orders makes the drop of 0.7% in industrial production reported on Friday tolerable, he added.

Analysts polled by Reuters had expected a 0.5% increase.

The statistics office attributed the output decrease to a drop in energy production and in machinery and equipment manufacturing.

“These strong orders are expected to boost industrial production - and, by extension, exports - in the coming months,” Gitzel said, though he warned the well-being of German industry hinged on ⁠how much longer the Iran war will persist.

Sentiment indicators point to a second-quarter contraction in industrial output, because of high energy prices and supply bottlenecks resulting from the blockade of the Strait of Hormuz, said Commerzbank analyst Joerg Kraemer.

A 7.9% month-on-month slump in exports to the United States in ⁠March also showed a clear drag on trade, added Gitzel.

The United States remains the biggest destination for German goods despite the slump, receiving shipments of German goods worth 11.2 billion euros in March.

Imports surged in ⁠March, rising 5.1% compared with expectations for an increase of only 0.8%.

Most imports came from China, accounting for goods worth 15.6 billion euros ($18.31 billion) and marking a 4.9% increase on ⁠the month.

As a result, the foreign trade surplus narrowed more than expected, to 14.3 billion euros ($16.80 billion), from 19.6 billion the month before.


Asia Gets First Mexican Fuel Oil Cargo in 9 Months

FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
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Asia Gets First Mexican Fuel Oil Cargo in 9 Months

FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: Oil tankers in the Singapore Strait in Singapore March 17, 2026. REUTERS/Edgar Su/File Photo

Asia received its first fuel oil cargo from Mexico in nine months on Thursday, with more to follow, as higher Asian prices draw supply after the loss of Middle East cargoes due to the Iran war, according to industry sources and shipping data.

The incoming cargoes from Mexico will ease some concerns about declining inventories in Asia's trading and bunkering hub Singapore, after the Iran conflict choked off most fuel oil supplies from key exporters in the Middle East like Iraq and ⁠Kuwait via the Strait of Hormuz, according to Reuters.

Suezmax tanker Orion, carrying about 160,000 metric tons (1 million barrels) of Mexican high-sulphur fuel oil (HSFO) loaded from the Salina Cruz refinery on the Pacific coast, reached Singapore on May 7, according to traders and ship-tracking data from Kpler.

PMI, the trading arm of Mexican state energy company Pemex, offered another 150,000-ton HSFO cargo to Asia for June delivery via a tender that closed on May 6 with bids valid until May 8, a Singapore-based trader familiar with the matter said. PMI is expected to award the tender later on Friday.

Fuel oil traders said that strong Asian prices are pulling cargoes to Asia while there is ⁠excess supply in the Americas.

“Mexican fuel barrels have to search for more optimal economics due to an influx of Venezuelan oil into the US Gulf Coast,” said Emril Jamil, senior analyst for crude and fuel oil at LSEG.

Most of Mexico's fuel oil exports typically land in the US or the Caribbean Islands, Kpler data showed.

Neither Pemex nor its trading ⁠arm immediately responded to a request for comment.

Traders in Asia have been looking for more arbitrage supplies from the West after the Middle East supply disruption.

The arbitrage is open with front-month 380-cst HSFO East-West spread at near $60 a ton this week, ⁠more than double the level before the conflict, LSEG data showed.

The spread breached $80 a ton on March 9 following the Middle East war, the data showed, a level last seen in September 2019.

A wider East-West price ⁠spread, which measures the price difference between Asian fuel oil versus supply from the Americas and Europe, typically makes it more attractive for cargoes to be shipped from the West to Asia.