stc signs multiple MoUs to boost localization of ICT sector in Saudi Arabia
Updated 16 March 2023
Lama Alhamawi
RIYADH: In a move to increase the production of local content, Saudi telecom service provider stc signed a number of new strategic agreements with domestic companies during the Public Investment Fund's Private Sector Forum held in Riyadh on March 14-15.
Aimed at supporting sustainability efforts, stc signed the first agreement with Ebttikar, which provides recycling services and the preservation of raw materials.
Another deal it signed during the forum was with Holoul to provide smart solutions for conference rooms and private offices.
"We signed the two contracts with local companies. One of the contracts is related to improving the environment through stc refurbished products. The second is related to developing an office automation environment solution, which will take us to the IoT investment. And this is really something that we will see soon. Hopefully, it will be localized and then it will go abroad," Emad Alaoudah, group chief shared services officer at stc, told Arab News.
He explained the cooperation is an extension of the group’s efforts to support local content in the Kingdom, one of the main pillars of Saudi Vision 2030, which aims to maximize its contribution and enable it to create quality products and services.
During the forum, stc also introduced a “partner hub” platform that will open up wider investment opportunities for suppliers while supporting the establishment of new industries and the localization of existing ones.
"These contracts and the previous contract that I mentioned created an ecosystem today worth SR13 billion. This is the commitment that we put into the local markets since we started the Rawafed program years ago," Alaoudah said.
Rawafed was launched in 2018 by stc with the aim of developing sustainable local content and contributing to the national gross domestic product in the information and communications technology sector.
"Within the Rawafed program, we have created also an ecosystem where we try to localize some of the supply chains that we have in Saudi Arabia and also export it to the region and to the North of Africa," he added.
Alaoudah stressed that they understand the importance of concerted efforts by major Saudi companies to provide opportunities that enable entrepreneurs and local small and medium enterprises to raise their efficiency, "which will reflect positively on the business sector in the Kingdom."
He explained that stc wanted to highlight the Kingdom's ICT industry through the Rawafed program, through a series of workshops and partner hubs during the forum.
"This program is really focused on developing the local content. This will be through four major areas. One of them is R&D (research and development). Second is developing the capability of the young generation and the ICT industry. The third will be supporting the small and medium organizations that we have. And fourth, really to localize the manufacturing inside Saudi Arabia" he said.
In 2022, Rawafed invested SR5 billion into the national economy, raising annual domestic spending by SR13.4 billion, which contributed to the program reaching a rate of 40.75 percent in the local content development index.
Saudi insurance market mergers to accelerate amid regulatory push: Fitch
Updated 6 sec ago
Dayan Abou Tine
RIYADH: Saudi Arabia’s insurance sector is headed for a wave of consolidation as tougher capital rules and fierce price competition squeeze smaller players, Fitch Ratings said in a new report.
The agency expects mergers and acquisitions to accelerate as many insurers struggle to meet new capital requirements or remain profitable amid intense competition and rising costs.
The shakeout comes as the newly established Saudi Insurance Authority, which took over from the Saudi Central Bank and the Council of Health Insurance in November 2023, steps up efforts to stabilize and modernize the market in line with Vision 2030.
Several smaller insurers are already in talks with larger rivals as they look for ways to shore up their capital positions and ensure long-term survival.
“These measures will be credit positive for the sector in the long term,” Fitch said. “However, they will increase insurers’ regulatory compliance costs, particularly during implementation, adding to pressure on profitability in the short term.”
Growth, but thin margins
The findings come amid a period of rapid change in the Kingdom’s insurance sector. Even with tighter regulations and competitive pressures, the industry remains a vital pillar of the Saudi economy, covering everything from health and motor to property and mega-project risks.
Despite these challenges, the insurance sector is still growing. According to KPMG’s “Saudi Arabia Insurance Overview 2025,” total revenue rose 16.9 percent year on year in the third quarter of 2024, driven by a boom in compulsory medical cover, increased motor vehicle activity, and the Kingdom’s property development surge.
Health insurance, which accounts for roughly 60 percent of the market, saw revenue climb 13.6 percent in the third quarter alone, thanks to mandatory employee cover.
Motor insurance premiums also rose over 20 percent amid a robust auto market, while property and casualty insurance posted 20 percent growth driven by large-scale construction projects.
Profitability remains a sticking point, however. Health insurance margins have been hurt by medical inflation — the rising costs of medical goods and services — which has pushed up claims payouts even as price competition remains fierce.
Arab News has previously reported on how medical inflation, fueled by technological advances, labor costs, and changing health needs, makes it difficult for insurers to improve their combined ratios.
Fitch noted that of the 10 largest insurers, six made an underwriting profit in the first quarter of 2025, but several did so only marginally. Four of the top 10 reported underwriting losses, showing just how challenging the environment remains for even the biggest players
While property, casualty and life insurance offerings remain generally profitable, medical coverage has weaker margins except at the largest insurers, according to Fitch. Motor insurance, the second-largest segment, continues to face aggressive pricing challenges, particularly for compulsory third-party coverage.
A significant regulatory shift is also underway. Starting from January, insurers must now cede 30 percent of their reinsurance to local firms. This move is designed to bolster domestic reinsurance capacity, but it may temporarily raise counterparty risks for insurers since local reinsurers typically have thinner capital bases.
Over time, however, the quota might help local reinsurers build scale and improve risk management, supporting a more resilient market that keeps premium income and jobs within the Kingdom.
Fitch sees consolidation as inevitable — and ultimately healthy — for the sector. As competition intensifies and regulators raise the bar, many smaller players will likely seek mergers or alliances to survive.
This, the agency says, should create a more stable and competitive insurance industry capable of supporting Saudi Arabia’s Vision 2030 transformation.
GCC vows solid climate action efforts to guard coastal communities
Updated 35 min 3 sec ago
Nirmal Narayanan
RIYADH: The Gulf Cooperation Council has reaffirmed its commitment to implement strong climate action efforts to tackle environmental issues faced by coastal communities.
Speaking at the Ocean Rise and Coastal Resilience Summit, Jasem Mohamed Al-Budaiwi, secretary-general of the GCC, said that the council is undertaking various efforts to safeguard the marine environment, particularly the Arabian Gulf, through policies and initiatives that are already yielding visible results.
Al-Budaiwi added that the coastal zones of GCC nations are environmentally vulnerable, and protecting them is crucial for sustainable development and prosperity in the region, according to the news agency WAM.
Despite being oil-dependent nations, countries in the GCC, including the Kingdom, are taking significant steps to combat climate change, with Saudi Arabia setting its net-zero target for 2060.
According to the latest report by WAM, Al-Budaiwi “underscored the importance of adopting ambitious, actionable strategies rooted in local and international expertise to address growing environmental challenges.”
The report added: “The Secretary-General also emphasized that sustainable development and climate resilience are central to the visions of all GCC member states.”
Al-Budaiwi also used his speech to underscore the importance of adopting ambitious, actionable strategies rooted in local and international expertise to address growing environmental challenges.
The secretary-general further said that sustainable development and climate resilience are central to the development goals of all member states in the GCC.
He also called for urgent and collective action to transform climate pledges into measurable outcomes, particularly in vulnerable coastal regions.
During the 43rd meeting on “Future Climate Change Management and Economic Development in the Gulf States” in Muscat in February, Gulf nations announced plans to invest $100 billion in renewable energy by 2030 to cut emissions by up to 20 percent as part of their transition to sustainable energy.
The Kingdom, in particular, is also making significant efforts to ensure a green future and protect marine resources.
The King Abdullah University of Science and Technology has emerged as a world-class partner in marine science, collaborating with multiple entities to inform data-driven conservation efforts.
KAUST is also partnering with Saudi Arabia’s futuristic city, NEOM, to ensure coral reef restoration and coastal habitat mapping using advanced robotics and artificial intelligence.
As part of its broader sustainability efforts, the Kingdom has also launched the Saudi Green Initiative to advance its environmental goals.
Under SGI, the nation aims to plant 10 billion trees, rehabilitate 40 million hectares of degraded land, and reduce carbon emissions by more than 278 million tonnes per year.
In April, Saudi Arabia’s National Center for Wildlife signed an agreement with the UK’s National Oceanography Center to collaborate on marine biodiversity projects.
Under the deal, studies will be conducted to assess the impact of human activities on marine ecosystems, and the use of advanced technologies will be explored to mitigate their potential harm.
Maersk, Panattoni, JD Property sign major deals with Saudi entities at Munich logistics expo
Updated 10 June 2025
MIGUEL HADCHITY
RIYADH: Global supply chain players including Maersk, Panattoni, and JD Property signed agreements with Saudi entities at Transport Logistic 2025, underscoring the Kingdom’s emergence as a key player in the sector.
The deals — involving partnerships with firms such as GFS Express, Hefei Logistics Group, Scan Global, and Koppern — were unveiled as part of Saudi Arabia’s expansive presence at the trade fair, held in Munich, Germany.
Led by the National Industrial Development and Logistics Program and Invest Saudi, the Kingdom’s pavilion brought together 22 key government and private sector stakeholders.
Saudi Arabia has emerged as a central hub in the global logistics sector, with its market valued at $136.3 billion in 2024. It is also projected to grow at an annual rate of 6.5 percent, reaching $198.9 billion by 2030, according to Eurogroup Consulting.
“From hosting tech giants like Apple and iHerb in smart hubs to launching our national car Ceer, Saudi Arabia is becoming an industrial and automotive powerhouse,” said Suliman Al-Mazroua, CEO of NIDLP, according to a post on the organization’s official X account.
He added: “This isn’t just our story, it’s an invitation to dreamers and innovators. The future is happening now.”
Speaking at the three-day event that started on June 3, Al-Mazroua highlighted Saudi Arabia’s economic diversification success.
“For the first time in our history, non-oil activities contribute 55 percent of Saudi Arabia’s gross domestic product. This isn’t a future target, it’s today’s reality,” he said.
Key deals signed
The first day of the exhibition witnessed the signing of several strategic agreements aimed at strengthening Saudi Arabia’s logistics capabilities and fostering international cooperation.
Among the key deals, GFS Express and Hefei Logistics Group inked a memorandum of understanding to enhance logistics collaboration and develop innovative supply chain solutions.
SAL partnered with GCL to create specialized logistics solutions for the entertainment, sports, and arts sectors.
MODON and JD Property agreed to work on advanced logistics infrastructure and the localization of tech solutions, while JTM, Silk Mile, and Assaat formed an investment partnership to establish a logistics joint venture in the Kingdom.
MODON signed an MoU with US-based Panattoni to develop a logistics project in Jeddah, boosting supply chain efficiency.
Further agreements included SPL, Scan Global, and Maersk collaborating to enhance air freight, delivery solutions, and digital logistics infrastructure, as well as NIDLP partnering with Germany’s Koppern to explore the localization of roller press systems and compaction machines.
The Saudi pavilion attracted strong interest from global investors, industry leaders, and technology partners as it highlighted the Kingdom’s achievements in transport, logistics, and industrial development.
These developments align with Saudi Vision 2030 goals to position the country as a leading global logistics hub connecting three continents.
The event featured six specialized workshops covering infrastructure, digital transformation, and human capital development. A key session, “It’s Happening: Saudi Logistics Now,” emphasized the Kingdom’s logistics transformation through public-private partnerships.
Saudi Arabia continued to demonstrate its commitment to becoming a top-tier logistics and industrial destination, attracting global investors and innovators to join its growth journey.
Manufacturing, mining sectors drive Saudi industrial growth to 3.1%: GASTAT
Kingdom’s IPI advanced to 108.6 in April, representing a 0.6% rise
Sub-index of manufacturing activities advanced by 7.4%
Updated 10 June 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s Industrial Production Index expanded by 3.1 percent year on year in April, driven by strong growth in the manufacturing, mining, and quarrying industries, official data showed.
According to preliminary data from the General Authority for Statistics, the Kingdom’s IPI advanced to 108.6 in April, representing a 0.6 percent rise compared to the previous month.
The latest IPI figures reinforce the progress of Saudi Arabia’s economic diversification journey, which aims to reduce the Kingdom’s decades-long dependence on crude revenues.
“Preliminary results indicated a 3.1 percent increase in the IPI in April 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities,” the analysis stated.
GASTAT revealed that the sub-index of manufacturing activities advanced by 7.4 percent in April compared to the same month in 2024.
The authority added that the index of oil activities saw an annual rise of 4.3 percent in the fourth month of the year, while non-oil activities edged up by 0.1 percent. Compared with March, oil activities rose by 1.6 percent, whereas non-oil activities declined by 2 percent.
GASTAT added that the growth in the manufacturing sector was driven by an increase in the production of coke and refined petroleum products, which grew by 22.6 percent year on year in April.
The chemical manufacturing sector also contributed to the rise, increasing 9.1 percent annually.
On a monthly basis, the sub-index of manufacturing activity witnessed a rise of 0.5 percent, driven by a 5.8 percent increase in the production of coke and refined petroleum products.
The expansion of the manufacturing sector highlights the evolving structural transformation of the Saudi economy, with the Kingdom positioning itself as a key player in the global industrial landscape.
In April, the sub-index of mining and quarrying activities increased by 0.2 percent compared to the same month in 2024.
“Saudi Arabia increased its oil production to 9.01 million barrels per day in April 2025 compared to 8.99 million barrels per day in April 2024,” said GASTAT.
On a monthly basis, the sub-index of mining and quarrying activity increased by 0.5 percent in April.
According to the report, the electricity, gas, steam, and air conditioning supply sector registered an annual decrease of 0.2 percent but saw a monthly rise of 4.3 percent.
GASTAT further said that water supply, sewerage, and waste management activities increased by 8.8 percent year on year in April, while it declined by 0.7 percent compared to the previous month.
Compared to March, the index for oil activities increased by 1.6 percent in April, while non-oil activities dropped by 2 percent.
The Industrial Production Index measures changes in industrial output based on the International Standard Industrial Classification framework, covering mining, manufacturing, utilities, and waste management sectors.
Strategic reforms and cultural depth are driving Uzbekistan’s tourism boom, says official
Chairman of the Tourism Committee praised Saudi Arabia’s diversification efforts in tourism
Saudi tourist arrivals in Uzbekistan rose from 1,731 in 2022 to over 4,100 in 2024
Updated 20 min 29 sec ago
NOOR NUGALI
TASHKENT: As Uzbekistan undergoes an economic transformation, tourism has emerged as both a cultural ambassador and a powerful growth engine.
At the forefront is Umid Rustamovich Shadiyev, chairman of the Tourism Committee under the Ministry of Ecology.
Formerly Uzbekistan’s Permanent Representative to UNESCO, Shadiyev brings both diplomatic experience and a deep understanding of the nation’s rich heritage.
Arab News spoke with Shadiyev during the Tashkent International Investment Forum 2025, a flagship platform bringing together global investors, policymakers, and innovators to explore Uzbekistan’s investment landscape.
Saudi Arabia’s Crown Prince Mohammed bin Salman meets with Uzbekistan’s President Shavkat Mirziyoyev on the sidelines of the Gulf Summit with Central Asian countries in Jeddah. File/SPA
Now in its fourth edition, the forum has become a cornerstone of the country’s reform agenda, highlighting strategic sectors such as energy, infrastructure, agriculture, and tourism.
This year’s event welcomed over 2,500 delegates from 70 countries, with tourism receiving special focus as a driver of inclusive and sustainable development.
Saudi-Uzbek tourism ties deepen
The conversation turned to Saudi Arabia, where tourism is undergoing a historic transformation under Vision 2030. Shadiyev praised the Kingdom’s diversification efforts, calling it “a new center of global tourism.”
Uzbekistan sees an opportunity for synergy, and a memorandum of cooperation in tourism was signed in 2022, followed by joint forums and high-level meetings in 2023 and 2024.
“Our relationship with Saudi Arabia is growing stronger each year,” said the official.
Uzbekistan’s President Shavkat Mirziyoyev received Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan at the headquarters of the International Conference on Central Asia and South Asia, held in Tashkent. File/SPA
The results are visible. Saudi tourist arrivals in Uzbekistan rose from 1,731 in 2022 to over 4,100 in 2024, reflecting growing interest in cultural, gastronomic, and mountain tourism.
“There’s huge potential in developing family-oriented tours, heritage trails, and collaborative media campaigns,” Shadiyev noted.
Tourism university exchanges, journalist visits, and influencer collaborations are also being explored.
In 2025, Uzbekistan is emphasizing sustainable tourism and aims to increase the average stay of foreign visitors to 10 to 12 days. Strategic partnerships — such as with Saudi Arabia — are seen as central to achieving this goal.
Tourism emerges as economic pillar
“Tourism is currently one of the key sectors of Uzbekistan’s economy,” Shadiyev noted. “In 2024, we saw a significant leap forward: the export of tourism services increased by 1.6 times, reaching $3.5 billion.”
This performance is backed by a rise in entrepreneurship, with more than 2,000 new tourism businesses launched in the past year alone. From boutique hotels to eco-lodges and cultural tour operators, a new generation of investors is responding to supportive government policies and the sector’s strong profitability.
Uzbekistan is also rolling out a UN tourism platform and a unified tourist card integrating visa services, tickets, and discounts. Pexels
The transformation is evident across the country. Over the past eight years, Uzbekistan has attracted $6.5 billion in tourism-related investments and added 130,000 new hotel beds.
“These achievements reflect our commitment to building a world-class tourism ecosystem,” Shadiyev said.
A major milestone came in April, when over 1 million foreign tourists visited Uzbekistan in a single month — a national record.
Shadiyev attributes this growth to visa policy reforms, infrastructure upgrades, and active global engagement. “We’re not only opening our doors wider; we’re creating lasting experiences for visitors,” he said.
Looking ahead, Uzbekistan aims to further increase both international arrivals and tourism export volumes in 2025. The government is systematically working toward these goals by investing in digital transformation, human capital, and diversified tourism offerings.
Four seasons, one destination
Positioned at the crossroads of the Great Silk Road, Uzbekistan has long served as a bridge between East and West. Shadiyev highlighted the country’s unique geographic and cultural positioning: “We’re the heart of Central Asia — no regional tour is complete without including Uzbekistan.”
Uzbekistan aims to further increase both international arrivals and tourism export volumes in 2025. Uzbek Tourism
What makes Uzbekistan truly special, he said, is its year-round appeal. In spring, visitors celebrate Navruz, the festival of renewal, and explore blooming gardens, vibrant bazaars, and the historic cities of Tashkent, Samarkand, Bukhara, and Khiva.
Summer brings tourists to mountain resorts and natural lakes, rich fruit harvests, and traditional crafts festivals.
Winter offers skiing and tranquil nature retreats, while autumn is ideal for cultural immersion and warm Uzbek hospitality.
“Every season offers a new story, a new flavor,” Shadiyev said.
The country’s legacy is underscored by its many UNESCO World Heritage Sites, including Samarkand, Bukhara, and Khiva. Uzbekistan is also witnessing a boom in niche tourism markets, including ziyarat, or pilgrimage tourism, ecotourism, domestic travel, and culinary tours.
Uzbekistan’s rise on the global travel radar is also backed by international accolades.
Over the past eight years, Uzbekistan has attracted $6.5 billion in tourism-related investments and added 130,000 new hotel beds. Uzbekistan Travel
The country was named the Most Desirable Emerging Destination by Wanderlust, UK; won the tourism in the CIS award from Russian Traveler; and was featured among the Top 25 Destinations of 2025 by both BBC Travel and The New York Times.
Gulf travelers drawn to shared culture
When asked about Uzbekistan’s appeal to Arab travelers, particularly from the Gulf region, Shadiyev emphasized deep-rooted cultural and spiritual ties.
“Our shared Islamic heritage and atmosphere of religious respect make Uzbekistan especially attractive to Gulf visitors,” he said.
Khiva’s designation as the 2024 Tourism Capital of the Organization of Islamic Cooperation reflects this connection.
Other key events include the Economic Cooperation Organization’s tourism forum in Shakhrisabz, which spotlighted opportunities in religious and cultural travel.
Uzbekistan is enhancing its appeal through substance and strategy.
In 2025, Uzbekistan is emphasizing sustainable tourism and aims to increase the average stay of foreign visitors to 10 to 12 days. Getty
A 30-day visa-free regime now applies to citizens of Saudi Arabia, the UAE, and Qatar, as well as those of Oman, Bahrain, and Kuwait.
Direct flights from Gulf capitals are expanding, and tour operators are curating experiences tailored to Arab travelers.
The country offers a rich mix of gastronomy — including signature dishes like plov, manti, and shurpa — as well as ethno-tourism experiences in traditional villages, and a vibrant calendar of music, art, and food festivals.
Uzbekistan is also rolling out a UN tourism platform and a unified tourist card integrating visa services, tickets, and discounts.
“We’re not just promoting Uzbekistan; we’re building a seamless visitor experience,” Shadiyev added.
Vision rooted in heritage and openness
As the interview concluded, Shadiyev returned to a theme central to Uzbekistan’s tourism push: openness. “We are a country that welcomes the world — with history in our stones and hospitality in our hearts,” he said.
The Tashkent International Investment Forum served as the perfect setting for this conversation, reflecting Uzbekistan’s economic momentum and its growing network of global partnerships — none more vibrant than those flourishing through tourism.
As Shadiyev put it, quoting an old proverb: “It’s better to see something once than hear about it a hundred times.”
