Saudi Arabia’s space sector soars with strategic initiatives

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Updated 21 July 2024
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Saudi Arabia’s space sector soars with strategic initiatives

  • Initiative aims to bolster the nation’s position in global space economy by developing local capabilities

RIYADH: Saudi Arabia’s bid to become a leading player in the global space industry gained momentum with the recent unveiling of Neo Space Group, a strategic initiative to foster private sector growth. 

Backed by the Public Investment Fund, the group will invest in local and international assets, venture capital opportunities, and cutting-edge technologies to advance the sector, aligning with Saudi Vision 2030’s economic diversification goals. 

NSG aims to bolster the nation’s position in the global space economy by developing local capabilities and providing innovative satellite and space solutions. 

The development, spearheaded by the Communications, Space, and Technology Commission and the Saudi Space Agency, has garnered positive reactions from industry leaders and local talent, all of whom see immense potential in the Kingdom’s burgeoning space ambitions. 

In an interview with Arab News, Amar Vora, head of space at Serco Middle East, expressed strong support for the establishment of NSG, calling it a “bold step forward” that will stimulate the growth of the private space sector in Saudi Arabia. 

“The establishment of the NSG is a welcomed move that will champion growth for the private space sector in the Kingdom,” Vora said. “By working with CST and SSA, the establishment of the NSG will help unlock strategic investments and partnerships with the commercial sector that are aligned with national priorities.”

Serco, a global firm headquartered in Dubai with over 40 years of experience in the space industry, is committed to localizing its services in Saudi Arabia. “We are committed to transferring our knowledge and know-how from our international space business into the Kingdom through our training programs,” Vora added. 

“Our role as a service integrator means that we look to collaborate with innovative companies (small to large) to deliver services across the industry,” he also said. 

The emphasis on developing a robust value and supply chain within Saudi Arabia is seen as crucial for accelerating the sector’s sustainability. 




The emphasis on developing a robust value and supply chain within Saudi Arabia is seen as crucial for accelerating the sector’s sustainability. (SPA)

Vora highlighted the importance of investments in localization and startups across key segments of the space sector, which will help build a dynamic local ecosystem. 

“Going forward, building up the value and supply chain in the Kingdom is essential to accelerate the long-term sustainability of the sector,” he said, adding: “Importantly, NSG’s investments into localization and startups across key segments of the space sector will facilitate the growth of the local ecosystem.”   

Investing in national talent is another cornerstone of Saudi Arabia’s strategy to advance its space industry, and Vora stressed the dual benefits of such investments, addressing both immediate industry needs and long-term growth.  

He added: “Investing in national talent benefits both the immediate needs of the growing space industry and its long-term growth, stability, and success.”  

Vora said that enhancing the skill set of future professionals is expected to bolster the economy by creating a proficient workforce for high-tech jobs. The sector’s growth will provide ample opportunities, with local talent preserving intellectual capital within the Kingdom.  

Speaking to Arab News, Sarah Alhabbas, a graduate of Serco’s Space Graduate Program, shared her journey and shed light on the positive impact of investing in local talent. 

“When I heard that hundreds of nationals had applied to Serco’s Space Graduate Program, I was very proud to have been selected,” Alhabbas said.  

She added: “When I joined, I gained some great insights into what the company’s strategy was and how that relates to Saudi Vision 2030, and I was able to learn more about the actions being put into place to live out the company’s purpose of impacting a better future.” 

As a participant in Serco’s Space Graduate Program, Alhabbas undertook an intensive six-month course at Serco’s COP-2 facilities in Darmstadt, Germany, where she enhanced her theoretical knowledge with practical applications and insights from industry experts. 

“I am excited about transferring that knowledge back to my colleagues and partners in Saudi Arabia after I graduate from the program in the summer,” she said. 

Alhabbas underscored the importance of investing in Saudi talent for the long-term sustainability and growth of the space industry. 

“(Investing in local talent) will help unleash the potential and capabilities of Saudi talent, which can also inspire future generations’ interest in the sector,” she said. 

The graduate added that a strong understanding is crucial “to move toward a more knowledge-based economy to attract investment and lead to economic growth.” 

We are committed to transferring our knowledge and know-how from our international space business into the Kingdom through our training programs.

Amar Vora, head of space at Serco Middle East

As a woman in the field of space technology, Alhabbas has encountered and overcome various barriers, particularly in networking. “One barrier that I encountered at the beginning was the networking challenge; at events, females were in the minority.” 

Alhabbas also joined the space training program offered by CST, which has broadened her knowledge and connections within the sector. 

“The sector has been evolving significantly, especially in Saudi, and more women are exploring their interest and getting involved in space, and I hope I can help to inspire,” she said. “The space courses offered by CST are giving me the chance to meet women who are interested in entering this field which is of real benefit.” 

Alhabbas praised the government’s support for women’s education and training in space technology and said: “There is also much government support for this, with policies being implemented and programs to support women’s education and training.” 

Role models like Saudi’s first female astronaut, Rayyanah Barnawi, play a pivotal role in inspiring future generations. Barnawi has “shed light on the possibilities and capabilities of women in the field; she has truly inspired the future generation.” 

Looking to the future, Alhabbas aims to become a STEM (science, technology, engineering, and mathematics) and space ambassador in Saudi Arabia. “There’s a tremendous opportunity that lies ahead, and I’m proud to be part of it,” she said. 

The graduate expressed her ambition to encourage more talent from future generations to consider a role in the space industry, calling on private and public sector entities to work together to showcase the various career paths available. 

With initiatives like the NSG and the commitment of companies like Serco, Saudi Arabia’s space sector is on a trajectory of significant advancements. 

Strategic partnerships, a focus on national talent development, and government support are set to propel the Kingdom into a new era of space exploration and innovation.


Saudi Exchange unveils new instrument to trade global shares locally 

Updated 07 July 2025
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Saudi Exchange unveils new instrument to trade global shares locally 

RIYADH: Saudi Arabia has introduced a new financial instrument that gives investors in the Kingdom direct access to shares of foreign companies listed on global markets. 

The Saudi Exchange on July 7 launched its first Saudi Depositary Receipts, allowing international equities to be traded locally in Saudi riyals. 

The move marks the debut of depositary receipts in the Kingdom’s financial market and is seen as a strategic leap toward reinforcing Riyadh’s position as a global financial center, in line with the Financial Sector Development Program and broader Vision 2030 ambitions. 

In a release, Tadawul stated: “SDRs are highly liquid and flexible, enabling issuers to transfer securities between the Saudi financial market and foreign markets by converting the SDRs into shares in the foreign market, thus enabling the company’s shares to be traded on two different financial markets.” 

It described the launch as “a pivotal step toward consolidating the Kingdom’s position as a global financial center.” 

This development is not merely a technical upgrade; it reflects a broader strategic effort to modernize and globalize Saudi Arabia’s capital markets. 

Since the launch of Tadawul Group’s post-initial public offering transformation, the Kingdom has introduced a series of reforms aimed at enhancing market sophistication and accessibility.  

These include inclusion in global emerging market indices such as MSCI, FTSE, and S&P Dow Jones; the rollout of derivatives trading; the simplification of Qualified Foreign Investor frameworks; and the acceleration of sector-diverse IPO pipelines. 

The introduction of SDRs builds on this momentum by bridging local and international investment landscapes — effectively bringing Wall Street- or London-listed equities to Riyadh’s trading screens. 

What are SDRs and why do they matter? 

A depositary receipt is a financial instrument that represents shares in a foreign company but is traded on a local exchange in the domestic currency. 

In the case of SDRs, this means investors in the Kingdom can gain exposure to foreign firms — such as global technology giants, industrial leaders, or energy companies — without needing to open a brokerage account abroad. 

Unlike traditional cross-border investing, SDRs enable seamless trading, clearing, and settlement through Tadawul, all denominated in Saudi riyals. 

This makes it easier for local investors to access global markets. They can buy international shares through a familiar domestic platform and trade using local brokers. It also helps them diversify their portfolios without dealing with foreign accounts. Most importantly, they remain under the protection of Saudi Arabia’s legal and regulatory framework. 


Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

Updated 07 July 2025
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Closing Bell: Saudi stocks end higher on Monday as TASI rises 0.26% 

RIYADH: Saudi Arabia’s Tadawul All Share Index advanced 0.26 percent, or 29.73 points, to close at 11,345.46 on Monday. 

The total trading volume reached SR5.5 billion ($1.4 billion), with 132 companies experiencing growth and 116 declining. 

The MSCI Tadawul 30 Index edged up 0.21 percent to 1,454.38, while the parallel market Nomu posted a stronger performance, gaining 0.75 percent to finish at 27,462.84. 

Among the top performers, Tourism Enterprise Co. surged 9.64 percent to SR0.91. 

Ayyan Investment Co. rose 4.28 percent to SR14.38, while Sumou Real Estate Co. gained 4.18 percent to close at SR42.82. 

Buruj Cooperative Insurance Co. advanced 4.11 percent to SR18.99, and Tamkeen Human Resources Co. climbed 3.71 percent to end at SR55.90. 

On the losing side, Miahona Co. recorded the steepest decline, falling 3.35 percent to SR25.98.  

Umm Al-Qura Cement Co. dropped 3.21 percent to SR16.59. Saudi Kayan Petrochemical Co. slipped 2.31 percent to SR5.07. 

Almarai Co. decreased 2.05 percent to SR50.15, and Halwani Bros. Co. fell 2.04 percent to SR45.20. 

On the announcement front, Riyad Bank stated that it had commenced the offer of its US dollar-denominated Tier 2 trust certificates under its international trust certificate issuance program. 

The issuance will be conducted through a special-purpose vehicle and is targeted at eligible investors in the Kingdom and internationally. 

The certificates will have a minimum subscription of $200,000, with increments of $1,000 in excess thereof, and a par value of $200,000. They will have a maturity of 10 years, callable after five years. 

The amount and terms of the offer will be determined subject to market conditions. 

Riyad Bank has mandated DBS Bank, HSBC, and J.P. Morgan Securities, as well as Merrill Lynch, Mizuho, Riyad Capital, SMBC, and Standard Chartered as joint lead managers. 

The certificates will be listed on the London Stock Exchange’s International Securities Market. Riyad Bank shares closed at SR28.90, down 0.48 percent. 

Alinma Bank announced its intention to issue US dollar-denominated certificates under its own trust certificate issuance program, as per a board resolution dated May 13, which delegated authority to its chief executive officer. 

The offer is also expected to be conducted through a special-purpose vehicle and directed at eligible investors in Saudi Arabia and abroad. 

The issuance will be subject to regulatory approvals and compliance with applicable laws and regulations. 

Alinma Bank has appointed Abu Dhabi Islamic Bank, Alinma Capital, and Dubai Islamic Bank, as well as Emirates NBD, Goldman Sachs, J.P. Morgan, and Standard Chartered as joint lead managers. 

The amount and terms of the offer will be determined by market conditions. Alinma Bank shares ended the session at SR27.20, falling 0.87 percent. 


Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

Updated 07 July 2025
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Saudi Arabia’s King Salman Airport adopts biodiesel in construction to support net-zero goals

  • Biofuel Co. to supply B100 biodiesel as a direct alternative to fossil diesel
  • It will help reduce the project’s carbon footprint

JEDDAH: Saudi Arabia’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions. 

The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported. 

The agreement supports Saudi Arabia’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects. 

In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase. 

“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said. 

Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030. 

Biofuel Co. is Saudi Arabia’s first and only producer of standard-compliant biofuel. Biofuel Co.

Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals. 

Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.” 
 
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.” 

Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones. 

The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year. 

The project aligns with Saudi Arabia’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century. 


UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

Updated 07 July 2025
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UAE-Cuba economic ties poised for growth as first joint committee meets in Dubai

JEDDAH: Trade and investment relations between the UAE and Cuba are expected to deepen following the inaugural session of the Joint Economic Committee, which convened in Dubai to boost cooperation across multiple sectors, including biotechnology, renewable energy, and tourism.

Organized under the framework of the trade, economic, and technical cooperation agreement signed earlier by both nations, the session marked a significant step forward in advancing bilateral economic engagement.

The committee meeting was co-chaired by Abdullah Ahmed Al-Saleh, undersecretary of the UAE Ministry of Economy, and Carlos Luis Jorge Mendez, Cuba’s first deputy minister of foreign trade and foreign investment. According to the UAE’s official news agency WAM, discussions centered on enhancing collaboration in agriculture, food security, infrastructure, transportation, logistics, cultural industries, healthcare, and pharmaceuticals.

Non-oil trade between the two countries has been steadily rising. It reached over $39.1 million in 2024—up more than 2 percent from the previous year and 46.4 percent compared to 2022, WAM reported. The agency added that trade during the first quarter of 2025 rose by 5.6 percent compared to the same period in 2024, and by over 25 percent from the fourth quarter of that year. More than 825 Cuban brands are currently operating in the UAE market.

According to WAM,  Al-Saleh said that bilateral ties continue to advance steadily, particularly in the economic and commercial spheres, adding: “This reflects the visionary leadership of both nations in fostering growth and prosperity and in serving their shared interests.”

He continued: “The first session of the Joint Economic Committee between the two countries marks a key milestone in enhancing economic and investment relations in the coming period. It expands areas of cooperation in priority sectors, strengthens engagement between the Emirati and Cuban business communities, and explores promising market opportunities — contributing to the national goals of the ‘We the UAE 2031’ vision.”

Attended by the ambassadors of both countries, the session concluded with an agreement to establish a joint framework that will oversee implementation of the committee’s outcomes, ensuring the continuity of economic cooperation and shared growth.

According to WAM, both sides also agreed to coordinate business forums and economic events, exchange trade delegations, and facilitate increased trade and investment flows between Emirati and Cuban companies. The agency added that the two parties proposed organizing joint meetings, seminars, and workshops involving investors, promotion agencies, and financial institutions to attract investment in high-priority sectors.

“They stressed the importance of advancing economic cooperation through new partnerships in entrepreneurship and the startup ecosystem, with the aim of accelerating SME (small and medium-sized enterprise) growth, expanding investments, supporting exports to international markets, and increasing their contribution to the national GDPs (gross domestic products) of both countries,” WAM added.

Food security and agriculture were also top priorities, with both sides expressing interest in boosting trade in food commodities and agricultural products. They also committed to working together on sustainable farming, food processing, and agricultural technology.

Tourism was highlighted as another strategic sector for collaboration. Both nations agreed to co-host exhibitions, events, and conferences to showcase their tourist and heritage destinations. They also discussed sharing expertise and data on tourism resources, statistics, and digital innovations.

The committee’s formation follows recent government restructuring in the UAE. Just over two weeks ago, Sheikh Mohammed bin Rashid Al-Maktoum, vice president and prime minister of the UAE and ruler of Dubai, announced the creation of a Ministry of Foreign Trade, led by Thani Al-Zeyoudi. The Ministry of Economy was also renamed the Ministry of Economy and Tourism, now headed by Abdullah bin Touq Al-Marri.


GCC, Japan advance free trade talks as officials meet in Tokyo

Updated 07 July 2025
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GCC, Japan advance free trade talks as officials meet in Tokyo

RIYADH: Negotiations over a free trade agreement between the Gulf Cooperation Council and Japan advanced further this week as officials from both sides convened in Tokyo to review progress and explore ways to accelerate discussions.   

The meeting, held between GCC Secretary-General Jasem Al-Budaiwi and Japan’s Vice Minister of Economy, Trade and Industry Kato Akiyoshi, focused on the strategic potential of the proposed accord and recent developments in the negotiation process, the Saudi Press Agency reported.  

The second round of negotiations for the agreement had concluded in Tokyo in early June, covering a wide range of issues including goods, technical barriers, terms of services, financial and telecommunications services, and intellectual property.   

A government delegation led by the General Authority for Foreign Trade took part in those discussions, reviewing proposals aimed at strengthening trade relations, identifying areas for cooperation, and fostering new partnerships.  

At this week’s meeting, both sides reiterated that a free trade agreement would represent a pivotal step toward expanding trade flows, enhancing economic links, and establishing a framework for long-term cooperation.  

“Al-Budaiwi reviewed a number of economic indicators and statistics for the GCC countries, noting that the GCC countries’ distinguished economic performance, and the sustainable growth and development they are witnessing in various sectors, have contributed to strengthening their position regionally and internationally,” SPA’s report stated.  

The officials stated that the accord could open broader avenues for exchange and contribute to a sustainable economic partnership serving shared interests.