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SAS Opens Riyadh Hub, Pledges $1bn to Boost AI Growth

SAS seeks to advance digital transformation through partnerships with Saudi government, private sector, and universities (Shutterstock)
SAS seeks to advance digital transformation through partnerships with Saudi government, private sector, and universities (Shutterstock)
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SAS Opens Riyadh Hub, Pledges $1bn to Boost AI Growth

SAS seeks to advance digital transformation through partnerships with Saudi government, private sector, and universities (Shutterstock)
SAS seeks to advance digital transformation through partnerships with Saudi government, private sector, and universities (Shutterstock)

Underscoring Saudi Arabia’s growing role as a regional center for innovation and digital transformation, SAS, a global leader in data and artificial intelligence (AI), announced the opening of its new Middle East and North Africa regional headquarters in Riyadh.

The announcement came during the SAS Innovate On Tour event in the Saudi capital, marking not only an expansion of the company’s operations but also a deepening commitment to supporting the goals of Saudi Vision 2030, which places data and AI at the heart of the country’s economic transformation and sustainable innovation agenda.

Speaking to Asharq Al-Awsat, Dr. James Goodnight, Chief Executive Officer of SAS, said the company brings over four decades of experience in analytics and AI, offering trusted capabilities that directly support Vision 2030’s ambitions across government, finance, healthcare, energy, and smart cities.

He noted that long-term impact for SAS is built on a sustained commitment to innovation. This includes a $1 billion investment in industry-specific AI solutions to ensure we remain at the forefront of technological progress and deliver advanced capabilities for years to come.

Regional Hub at the Heart of Transformation

SAS said its new regional headquarters in Riyadh reinforces its more than two-decade presence in the Kingdom and brings it closer to its network of partners and clients across the region.

“Saudi Arabia is rapidly emerging as a hub for innovation and digital transformation. By establishing our regional headquarters in Riyadh, we are positioning ourselves at the heart of this growth. Our investment underscores SAS’s belief in the Kingdom’s potential and our commitment to supporting Vision 2030,” said Alexander Tikhonov, Regional Director, Middle East Türkiye & Africa at SAS.

The new office will include leadership, customer engagement, consulting, and innovation divisions, serving as a collaborative center for key sectors such as banking, government, energy, utilities, and telecommunications.

“From Riyadh, SAS will partner with governments, enterprises, and academia across the Middle East to deliver cutting-edge AI and analytics solutions. This headquarters will also serve as a hub for knowledge sharing, skills development, and regional collaboration,” said Mohammed Kiki, SAS Country Manager for Saudi Arabia.

Empowering Vision 2030

Under Saudi Vision 2030, data, analytics, and AI are not viewed as supporting tools but as national pillars for building a sustainable knowledge-based economy.

Goodnight said SAS’s role in this landscape goes beyond technology, describing it as a strategic and developmental partnership with the Kingdom.

The company, he added, provides an integrated platform that supports secure data management, advanced analytics, model development and deployment, real-time decision-making, and AI governance — all key to achieving Vision 2030 objectives.

According to SAS, this comprehensive approach enables organizations to transform data into actionable insights that enhance decision-making and operational efficiency.

This vision is backed by a $1 billion global investment to accelerate the development of advanced analytics and AI solutions tailored to critical industries, including financial security, energy, healthcare, and public services.

Building Human Capital

SAS’s strategy in Saudi Arabia places strong emphasis on empowering national talent and building local capabilities in data and AI.

Goodnight said developing Saudi talent is one of the areas where the company can make the greatest impact. SAS collaborates with Saudi universities, government agencies, and private institutions to prepare young people for future careers through AI hackathons, academic training programs, and research grants.

Goodnight stressed that these initiatives aren’t side projects and are central to SAS’s mission of empowering the next generation of innovators who will drive the Kingdom’s knowledge economy.

Trust, Transparency, and Digital Sovereignty

As AI adoption accelerates globally, data governance and digital sovereignty have become critical, particularly in the public sector.

Goodnight emphasized that SAS technologies are designed to meet Saudi Arabia’s stringent regulatory and sovereignty requirements. The company’s solutions, he said, fully comply with national standards for data governance and sovereignty, providing organizations with clarity and confidence in building robust AI governance frameworks.

He added that SAS enables government entities to deploy transparent and interpretable AI systems under human oversight, ensuring that decisions align with national values and policies.

Goodnight affirmed that this approach reflects SAS’s commitment to advancing digital transformation in Saudi Arabia without compromising sovereignty or transparency.

This also aligns with the Kingdom’s push for a secure and responsible digital environment.

Cloud Readiness and Local Compliance

With the rapid shift toward cloud computing across Saudi Arabia’s public and private sectors, SAS’s cloud-native platform SAS Viya offers a flexible and secure framework for deploying AI models in compliance with national regulations.

Goodnight said the platform allows public-sector leaders to enhance performance and reduce costs by optimizing cloud resources while ensuring full adherence to data sovereignty requirements.

He added that SAS works closely with global and local partners to align its cloud infrastructure with Saudi law, offering flexible deployment options — including local servers and private cloud — to ensure sensitive data remains within the Kingdom’s borders.

Technological progress must go hand-in-hand with responsibility, Goodnight noted, adding that SAS focuses deeply on developing transparent, explainable AI that operates under human supervision.

This approach aligns with Saudi Arabia’s broader policy of promoting ethical AI and innovation governance, strengthening public trust in the Kingdom’s digital transformation and embedding transparency and accountability at the core of its technological future.

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Business

Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
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Al Dardari to Asharq Al-Awsat: War Escalation Drives Huge Surge in Losses

Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)
Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States (Turky Alagili)

With the release of a special report by the Development Programme on the economic fallout of escalating tensions in the region, Abdallah Al Dardari, Assistant Secretary-General of the UN and Director of UNDP’s Regional Bureau for Arab States said the region is facing an “accelerating economic shock” hitting energy markets, growth, and livelihoods.

Speaking to Asharq Al-Awsat, he warned nearly 4 million people could fall into poverty within a month, calling it an unprecedented indicator of the economic toll of war.

Losses, he said, could rise rapidly if fighting continues, alongside shifts in energy routes, supply chains, and development models.

Estimates based on simulations

Al Dardari said the shock has been sharp and sudden, with losses expanding rapidly over a short period. Current estimates remain based on simulation models, as there has not been enough time to measure real impacts precisely.

The methodology draws on models used in past crises, including Gaza and Lebanon, which later proved highly accurate. The report focuses on broad trends rather than precise figures, particularly in GDP, to track the direction of economic impact.

Losses mounting

The report outlines wide-ranging effects, including declining trade, disruptions in petroleum flows, a worsening investment climate, and growing pressure on public finances.

“After four weeks of war, the impact is very large,” Al Dardari said.

“The Strait of Hormuz is closed, oil exports have been severely affected, and we are moving toward the worst-case scenario.”

He said production inputs have been severely disrupted and infrastructure has been damaged, pushing expected losses closer to $194 billion than $120 billion.

The scenarios are based on one month of fighting. If the conflict continues even one more week, losses would not rise incrementally but multiply, he warned.

GDP losses are highest in Gulf economies due to the hit to oil and energy, while poverty is expected to surge most in the Levant, where rising energy costs quickly drive up food prices.

“The number of poor could increase by around 4 million in a single month,” he said, noting such a jump would normally take years.

Energy routes shifting

Countries are scrambling to contain the shock, repair damage, and secure alternative supply lines.

Saudi Arabia is relying more on pipelines to Yanbu on the Red Sea, while Iraq and Syria are holding serious talks to move crude and petroleum products overland.

“This is a shift toward building alternatives and more diversified, resilient supply chains,” Al Dardari said, adding that the UNDP is supporting efforts to strengthen regional connectivity and trade routes.

Syria’s corridor role

On proposals to bypass the Strait of Hormuz through Syria, Al Dardari said the country has historically served as a regional transit hub linking trade routes.

He pointed to Syria’s “Five Seas” strategy in 2007–2008, which aimed to connect the Caspian, Black, Red, and Mediterranean seas, and the Arabian Gulf through pipelines, rail, roads, and energy grids.

At the time, the plan was backed by a comprehensive development strategy and relatively mature institutions. Today, however, regulatory and legal frameworks for cross-border investment remain underdeveloped, despite ongoing efforts to improve them.

He said the UNDP is ready to support countries in building the technical and institutional capacity needed to pursue such projects.

Opportunity amid crisis

Despite the downturn, Al Dardari said Syria, Jordan, and Lebanon have an opportunity to form a quasi-regional bloc and revive their role as a bridge linking Gulf economies with Türkiye and Europe through alternative supply chains.

But he cautioned this would require more than infrastructure, including stronger institutions, financial systems, and coordination across sectors and borders, as well as “regulatory convergence.”

Rethinking development

The crisis is also forcing a reassessment of development models.

“If 90% of oil and gas exports depend on the Strait of Hormuz, why were alternatives not developed?” he said, noting tensions in the region are not new.

He called for diversification of economies and labor markets, and deeper regional and global integration. While existing models delivered low poverty and strong growth, they have shown vulnerability to shocks.

“We face a more complex reality, with more shocks likely. We need more flexible and effective tools,” he said, adding that current strategies remain valid but may need more efficient pathways.

Rewriting reconstruction

Al Dardari said recovery in Gaza, Syria, and Lebanon can no longer rely on large external funding flows, shifting the burden to governments already facing rising poverty.

He questioned continued reliance on Gulf funding and called for innovative, sustainable recovery models.

The UNDP’s approach focuses on agriculture, local value chains, and affordable housing, drawing on global experience.

He said small and medium-sized enterprises offer a “sustainable alternative” due to their resilience, while strengthening education and healthcare is key to building a new social contract and stabilizing institutions.

Business

Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)
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Euro Zone Inflation Surges Past ECB Target on Oil Shock

Shelves filled with fruit inside a supermarket in Berlin (Reuters)
Shelves filled with fruit inside a supermarket in Berlin (Reuters)

Euro zone inflation soared past the European Central Bank's 2% target this month due to surging oil and gas prices, heightening a policy dilemma as expensive energy drags growth and risks generating a self-reinforcing inflation spiral.

Oil prices have nearly doubled as a result of the Iran war and the ECB is now debating whether to raise interest rates to prevent this surge from becoming entrenched in the price of other goods and services, Reuters reported.

Overall inflation in the 21 countries sharing the euro currency jumped to 2.5% in March from 1.9% a month earlier, below expectations for 2.6% in a Reuters poll of economists, as energy costs rose 4.9%.

"The previously price-stable environment is saying goodbye" said Alexander Krueger, chief economist at Hauck Aufhaeuser Lampe. "What matters is that this inflationary dirt does not feed through into the core rate." A closely-watched figure on underlying inflation, which excludes volatile ⁠food and energy, ⁠meanwhile, fell to 2.3% from 2.4%, data from Eurostat, the EU's statistics agency showed on Tuesday.

Basic economic theory argues that central banks should look past one-off price shocks generated by supply disruptions, especially because monetary policy works with long lags.

But a quick rise in energy inflation can easily broaden out if companies start building this into selling prices and workers begin demanding higher wages for the loss of disposable income.

High energy prices should increasingly make other goods more expensive and push up core inflation, said Commerzbank's chief economist ⁠Joerg Kraemer, forecasting headline inflation will rise above 3% by May unless the war ends quickly. The public may also start doubting the ECB's resolve if it remains idle, firming the case for rate hikes even in the event of large but not so persistent inflation episodes, ECB President Christine Lagarde said last week.

Financial markets now see three interest rate hikes from the ECB this year, with the first in either April or June.

"The mounting inflation pressure suggests that the ECB will raise its key interest rates in April or, at the latest, in June," Kraemer said. While some policymakers, such as the influential Bundesbank head Joachim Nagel, said that a rate hike as soon as April was an option, others, including ECB board member Isabel Schnabel, have warned against hasty action.

But policymakers agree that the ECB must act if energy starts ⁠generating second round ⁠price pressures, especially since domestic inflation had been above 2% for years.

Services inflation, the single largest item in the consumer price basket and the key gauge for domestic inflation, fell to 3.2% in March from 3.4% a month earlier.

Part of the issue is that the ECB was late in recognizing the inflation problem in 2021/22, arguing for months that the surge was transitory and would pass. It only raised rates when price growth hit 8%, forcing the central bank into its steepest tightening cycle in its history.

But the bloc is now in a very different position, so comparisons with 2022 are not entirely valid.

Rates are already higher, budget policy is tighter, the labor market has been weakening for months and there is no pent-up demand created by pandemic-era lockdowns.

The ECB will next meet on April 30.

"We find it hard to see the ECB moving at the next meeting at the end of April," said Carsten Brzeski, global head of macro at ING. "Unless the ghosts of 2022 are really keeping policymakers awake at night."

Business

China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
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China Expresses 'Gratitude' after 3 Ships Transit Hormuz Strait

FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)
FILE - Ships sail through the Arabian Gulf toward the Strait of Hormuz as the sun sets in the United Arab Emirates Monday, March 23, 2026. (AP Photo, File)

Beijing expressed "gratitude" on Tuesday as it said three Chinese ships had transited the crucial Strait of Hormuz, which Iran has all but closed during the war in the Middle East.

"Following coordination with relevant parties, three Chinese vessels recently transited the Strait of Hormuz; we express our gratitude to the relevant parties for the assistance provided," foreign ministry spokeswoman Mao Ning told a regular press conference.

Mao did not offer ‌details about the ‌Chinese ships.

Ship-tracking data showed two Chinese container ships sailed through the Strait of ⁠Hormuz on Monday ⁠on their second attempt to leave the Gulf after turning back on Friday.

The vessels sailed in close formation out of the strait and into open waters, data on the MarineTraffic platform showed.

"Both vessels successfully crossed on a second attempt today, marking the first container vessels to leave the Persian Gulf since the start of the conflict, excluding Iranian flag vessels," said Rebecca Gerdes, data analyst with Kpler, which owns MarineTraffic.

"Both vessels are steaming at an elevated speed toward the Gulf of Oman at the moment."

Officials from China's COSCO, the shipping group that operates ⁠the two vessels, did not respond to requests for comment. COSCO had said in a March 25 client advisory, that it had resumed bookings for general cargo containers for shipments from Asia to the Gulf including the United Arab Emirates, Saudi Arabia, Bahrain, Qatar, Kuwait and Iraq.

Iran has launched attacks on Gulf shipping and threatened more, stranding hundreds of vessels and 20,000 seafarers inside the Gulf.