Connecting the Kingdom: Saudi Arabia’s 5G revolution

Connecting the Kingdom: Saudi Arabia’s 5G revolution
By enabling smart city applications, 5G technology plays a crucial role in the Kingdom’s vision to transform its urban spaces into efficient, sustainable, and highly connected ecosystems. (SPA)
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Updated 04 January 2025
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Connecting the Kingdom: Saudi Arabia’s 5G revolution

Connecting the Kingdom: Saudi Arabia’s 5G revolution
  • Industry’s value is expected to reach $13.41 billion by 2029 — up from $2.1 billion in 2023

RIYADH: Healthcare, urban living and transportation are all being revolutionized in Saudi Arabia thanks to the Kingdom’s enthusiastic adoption of 5G technology, experts have told Arab News.

The industry’s value in Saudi Arabia is expected to reach $13.41 billion by 2029  — up from $2.1 billion in 2023 — as Vision 2030 initiatives drive the Kingdom’s economic diversification, according to analysis by TechSci Research.

While telecommunications is the obvious sector to benefit from the rollout of this technology — which promises significantly faster data speeds, more reliable connections, and the ability to connect a multitude of devices simultaneously — it will expand the capabilities of many industries.

Nader Kobrosli, a partner in management consulting firm Oliver Wyman’s Communications, Media and Technology practice, said his company forecasts that this technology could provide an $18 billion boost to the economy by 2030. 

5G will play a crucial role in nurturing a knowledge-based economy, generating new job opportunities, and attracting foreign investments.

Nader Kobrosli, partner at Oliver Wyman’s Communications, Media and Technology practice

“By enabling high-speed connectivity, 5G fuels the adoption of AI and IoT, facilitating real-time data insights and enhancing efficiency across all major sectors, including manufacturing, retail, energy, healthcare, and public services. This means 5G will play a crucial role in nurturing a knowledge-based economy, generating new job opportunities, and attracting foreign investments,” Kobrosli said.

5G making cities smarter

By enabling smart city applications, 5G technology plays a crucial role in the Kingdom’s vision to transform its urban spaces into efficient, sustainable, and highly connected ecosystems.

“For residents, 5G facilitates seamless connectivity, enhances public safety, and improves transportation with real-time traffic management and autonomous vehicle integration,” said Federico Pienovi, chief business officer and CEO for Asia and Pacific as well as Middle East and North Africa at software development company Globant. 

5G facilitates seamless connectivity, enhances public safety, and improves transportation with real-time traffic management and autonomous vehicle integration.

Federico Pienovi, chief business officer and CEO for Asia, Pacific and MENA at Globant

“It provides the infrastructure for data-driven insights, remote operations, and business automation, leading to increased productivity and cost efficiency. This connectivity ecosystem enriches everyday life, attracts talent, and drives economic growth, making Saudi Arabia a model for smart city development in the region,” he added. 

5G-led IoT services have already accelerated the proliferation of ‘smart’ services and industrial automation use cases.

Sauvik Tegta, partner at Kearney Middle East & Africa — Communications, Media, and Technology practice

Oliver Wyman’s Kobrosli noted that from energy savings to improved traffic flow, 5G will enhance urban living, and this in turn will attract significant investments and help position Saudi cities as models of innovation in the digital age.

“Residents and businesses will also benefit from this advanced infrastructure, and will enjoy a more connected, efficient, and environmentally-friendly urban environment,” he said.

Undoubtedly, 5G technology is an important catalyst in Saudi Arabia’s smart city initiatives, providing cutting-edge connectivity for  new cities like NEOM and Qiddiya and existing conurbations such as Riyadh and Makkah.

“Through smart poles that incorporate 5G cell sites, KSA’s smart cities are empowered with intelligent use cases that enhance urban living — from connected transportation networks to energy-efficient buildings and smart utilities, all of which contribute to sustainability goals,” said Hazem Galal, partner, Cities and Local Government global leader, Smart Mobility Global co-leader, at PwC Middle East. 

Through smart poles that incorporate 5G cell sites, KSA’s smart cities are empowered with intelligent use cases that enhance urban living.

Hazem Galal, partner, cities and local government global leader, smart mobility global co-leader, at PwC Middle East

Sauvik Tegta, partner at Kearney Middle East & Africa — Communications, Media, and Technology Practice, stressed that 5G is a core enabler, supporting Internet-of-Things-based capabilities in the near term, and more data-heavy and low latency capabilities in the mid-to-long term. 

“5G-led IoT services have already accelerated the proliferation of ‘smart’ services and industrial automation use cases such as smart parking, smart lighting, smart meters and grids effectively modernizing an aging infrastructure,” he said.

The Kearney partner added that “ubiquitous high-speed mobile connectivity” now enables convenient “anywhere-anytime services” that are fundamentally reshaping social and work-life habits.

5G transforming healthcare

The rollout of 5G infrastructure is revolutionizing healthcare in the Kingdom, particularly in how services such as telemedicine, remote diagnostics, and AI-powered patient care, are delivered.

From Globant perspective, Pienovi said: “The high speed and low latency of 5G enable healthcare providers to extend their reach to remote areas through telemedicine and remote monitoring, allowing patients to connect with specialists without traveling, ultimately reducing congestion in urban hospitals.”

He added that 5G facilitates the integration of Internet of Medical Things devices, which optimize resource management and reduce costs by offering real-time data on patient health. 

“Lastly, the low latency of 5G supports advanced applications like robotic surgeries and AI-driven diagnostics, enhancing precision and safety in medical interventions and improving overall patient outcomes,” Pienovi said. From PwC’s side, Galal emphasized that 5G’s low latency and high data capacity mean that healthcare providers can deliver real-time, high-quality care remotely, reaching patients in rural or underserved areas and thus enhancing access to care.

“While KSA is considered a highly urbanized country with more than 80 percent living in cities, the remaining population lives in rural areas, where access to a full range of health care services can be challenging. Furthermore, 5G’s capabilities in handling massive amounts of medical data securely and efficiently support advanced research, predictive analytics, and precision medicine, which are reshaping how healthcare is delivered and experienced in the Kingdom,” the PwC partner said.

Tegta from Kearney said that Saudi Arabia’s 5G infrastructure played a vital role in supporting healthcare services during the COVID-19 pandemic.

“As lockdowns took effect, 5G infrastructure became central to enabling telemedicine, remote patient monitoring, virtual consultations, and self-care. Public and private health care service providers were able to leverage multiple apps to enhance transparency, improve care coordination, accelerate communication, and enable faster response times,” the Kearney partner said.

“This foundation is expected to accelerate the adoption of more advanced digital healthcare services that will be proactive, personalized, predictive, and preventative. By 2030, services such as e-triaging, enhanced self-service and self-care, high-definition digital imaging, telesurgery, and connected ambulances will become commonplace,” he added.

Supporting education 

According to Ian Khan, a technology futurist and author who writes on the subject of AI, 5G makes virtual and augmented reality accessible in classrooms, meaning students can explore a historical site or conduct experiments in a virtual lab from anywhere.

“In fact, VR and AR in education are projected to grow significantly, with the global market expected to reach $12.6 billion by 2025, largely driven by 5G technology. It’s also helping teachers personalize lessons because they can instantly access data on student progress and adjust in real-time,” Khan told Arab News.

“For rural areas, 5G bridges gaps by making remote learning smooth and reliable, ensuring all students have access to quality education. It’s a huge step toward a digitally savvy, future-ready workforce,” he added.

Rajesh Duneja, Partner at Arthur D. Little Middle East, said 5G technology is set to transform education in Saudi Arabia through developments such as enabling immersive augmented reality and virtual reality applications, and allowing students to engage in interactive, hands-on learning environments that make complex topics more accessible and engaging. 

“Additionally, 5G’s high-speed connectivity will enhance the quality of video and audio for online classes, especially in remote areas where traditional Internet may be less reliable,” Duneja said.

He also flagged up how 5G supports a vast network of IoT devices in the classroom, from interactive whiteboards to smart desks, enabling personalized learning experiences that cater to each student’s needs.

Saudi Arabia’s signal to the world 

Technology futurist Khan said that Saudi Arabia’s leadership in 5G didn’t happen by accident and is the result of strategic planning.

“The Kingdom invested heavily in telecom infrastructure, spending an estimated $1.5 billion by 2022, which aligns with our Vision 2030 goals to diversify the economy through digital transformation,” Khan said.

“Strong public-private partnerships, particularly with telecom companies like STC and Zain, helped speed up 5G deployment. Progressive regulations by the Communications and Information Technology Commission have also made it easier for telecoms to innovate, boosting Saudi Arabia’s position not just regionally but globally,” he added.

Arthur D. Little’s Duneja said the government’s investment in an expansive fiber network has been critical as it supplies the high-capacity backhaul needed to support 5G’s bandwidth demands.

“Additionally, streamlined regulations for international Internet connectivity have enabled easier data flow and stronger connectivity options. Support from the Ministry of Communications and Information Technology has also been crucial, with efforts to promote a thriving digital economy that positions the Kingdom at the forefront of technological innovation in the region,” he added.

Ranking third in 5G download speed across Europe, the Middle East, and Africa, according to Opensignal, only underscores Saudi Arabia’s commitment to being a technology leader.

With its 5G speeds reaching around 272.6 Mbps, the Kingdom’s advanced infrastructure is on display for the world to see.

“This achievement lays a strong foundation for advances in everything from AI to smart cities. High-speed connectivity means we can support the next generation of tech innovations, like autonomous vehicles and IoT networks, that require reliable, fast data,” Khan said.

“It’s a signal to the world that Saudi Arabia is serious about its digital future, making it an attractive hub for global tech investments and partnerships,” the technology futurist added.


Saudi Arabia raises $628m in June sukuk offering

Saudi Arabia raises $628m in June sukuk offering
Updated 15 sec ago
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Saudi Arabia raises $628m in June sukuk offering

Saudi Arabia raises $628m in June sukuk offering

JEDDAH: Saudi Arabia’s National Debt Management Center has completed its June issuance under the government’s riyal-denominated sukuk program, raising SR2.355 billion ($628 million).

The figure marks a decline of 42 percent from May’s SR4.08 billion, which was the highest monthly total recorded this year. The drop reflects typical fluctuations in the government’s monthly funding activity.

The June offering was divided into five tranches. The first amounted to SR25 million and will mature in 2027. The second, totaling SR1.175 billion, will mature in 2029. The third tranche stood at SR500 million and is set to mature in 2032. The fourth was SR5 million, maturing in 2036, while the fifth and final tranche reached SR650 million, due in 2039.

Sukuk, which are structured to comply with Islamic finance principles, offer investors returns generated from tangible assets or projects, rather than traditional interest payments. These instruments continue to attract strong demand from investors seeking stable, Shariah-compliant returns.

Despite the month-on-month decline, the latest issuance underscores Saudi Arabia’s efforts to diversify its funding base and develop the domestic debt market.

The NDMC has maintained a steady pace of monthly issuances this year, including SR3.72 billion in January, SR3.07 billion in February, SR2.64 billion in March, and SR4.08 billion in May.

Saudi Arabia continues to lead the Gulf Cooperation Council in sukuk and bond activity. In the first quarter of 2025, the Kingdom accounted for more than 60 percent of all primary debt issuances in the region, raising $31.01 billion from 41 offerings, according to the Kuwait Financial Center, known as Markaz.

In a broader outlook, S&P Global has highlighted Saudi Arabia’s expanding non-oil economy and strong sukuk activity as key drivers for growth in global Islamic finance.

The agency forecasts total sukuk issuance could reach between $190 billion and $200 billion in 2025, with up to $80 billion in foreign-currency issuances, assuming stable market conditions.

Looking ahead, Kamco Invest projects that Saudi Arabia will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, about $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s prominent role in the region’s debt landscape.


Closing Bell: TASI rises 2.37% to close at 10,964 

Closing Bell: TASI rises 2.37% to close at 10,964 
Updated 24 June 2025
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Closing Bell: TASI rises 2.37% to close at 10,964 

Closing Bell: TASI rises 2.37% to close at 10,964 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose 254.04 points, or 2.37 percent, to close at 10,964.28 on Tuesday. 

Total trading turnover reached SR8.48 billion ($2.26 billion), with 248 stocks posting gains and five declining. 

The Kingdom’s parallel market Nomu also recorded an increase, gaining 492.72 points, or 1.87 percent, to settle at 26,850.79, as 73 stocks advanced and 22 retreated.

The MSCI Tadawul 30 Index, meanwhile, gained 29.06 points, or 2.11 percent, to finish at 1,406.69. 

Red Sea International Co. was the best-performing stock of the session, with its share price rising 9.97 percent to SR42.45. Salama Cooperative Insurance Co. followed with a 9.92 percent increase to SR13.52. 

Other gainers included Saudi Cable Co., which rose to a fresh year high on Tuesday, closing at SR147.20 with a 6.05 percent increase. 

On the losing side, SABIC Agri-Nutrients Co. saw the steepest decline, falling 4.58 percent to SR104.2. Saudi Arabian Oil Co. dropped 1.62 percent to SR24.34, and Taleem REIT Fund declined 0.85 percent to SR9.30. 

Dar Al Arkan Real Estate Development Co. announced its intention to issue a dollar-denominated, fixed-rate, Shariah-compliant sukuk under Regulation S, as it seeks to broaden its funding base and support general corporate purposes. 

The Riyadh-based property developer has appointed a consortium of regional and international banks to act as joint lead managers and bookrunners for the issuance. 

These include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Alkhair Capital, as well as Al Rayan Investment and Arqaam Capital. Other participants are Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, and First Abu Dhabi Bank.

The list also features J.P. Morgan, Mashreq, and Sharjah Islamic Bank, as well as Standard Chartered Bank, and Warba Bank. 

The appointed banks will arrange a series of fixed income investor calls starting June 24, ahead of the planned sukuk offering in global capital markets. 

The transaction remains subject to market conditions and regulatory approvals, including compliance with Financial Conduct Authority and International Capital Market Association stabilization rules. 

The offering is classified as a benchmark senior unsecured sukuk under Regulation S, which allows for international placement with institutional investors. The value of the sukuk will be determined based on market conditions at the time of issuance. 

According to the company’s statement on Tadawul, the proceeds from the issuance will be used for general corporate purposes. The board of directors approved the sukuk issuance on May 29. 

Dar Al Arkan’s share price closed the session 2.70 percent higher to reach SR19. 


Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report

Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
Updated 24 June 2025
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Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report

Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
  • OIA ranked 35th globally by assets under management among sovereign wealth funds
  • Around 61.3% of its portfolio is invested locally

RIYADH: Oman’s sovereign wealth fund posted a record profit of 1.59 billion Omani rials ($4.1 billion) in 2024 and grew its assets above 20 billion rials, Global SWF reported.

The additional revenue enabled the Oman Investment Authority to transfer 800 million rials into the national budget, according to the report, providing a vital fiscal cushion and underscoring the fund’s expanding dual role as both an economic engine and a diplomatic asset.

Beyond headline profits, OIA is executing a strategic shift, prioritizing domestic investments to generate local value while forming global partnerships to secure future-ready capabilities in areas such as artificial intelligence, clean energy, logistics, and manufacturing.

Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly being viewed as a nimble but ambitious player.

According to Global SWF, its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming the fund into a networked sovereign investor with a growing international footprint.

At home, OIA’s economic impact is significant. Around 61.3 percent of its portfolio is invested locally, mainly through its National Development Fund, which exceeded its 2024 target by deploying 2.1 billion riyals in strategic projects, according to Global SWF.

These include infrastructure ventures such as the Duqm Refinery, new mining operations in Lasil and Al Baydha, and solar energy plants in Manah.

Over the past year, the fund has inked a $300 million joint investment platform with Algeria and expanded its Vietnam-Oman Investment Fund. 

These investments signal a shift in Gulf sovereign wealth funds— from passive holdings to active, technology-driven deal-making aligned with national objectives.

In parallel, OIA has launched the Future Fund Oman with an allocation of $5.2 billion, targeting large-scale domestic projects, small and medium-sized enterprises, and startups, according to a separate May report by Global SWF.

In its first year, the fund approved over $2 billion in deals, with 75 percent of capital coming from foreign investors, underlining investor confidence in Oman’s diversification agenda.

Investing for Vision 2040

OIA’s 2024 performance also reflected its focus on human capital and job creation, with nearly 1,400 new roles generated and the Omanization rate across OIA-linked entities reaching 77.7 percent.

Through programs like Jadarah, Nomou, and Eidaad, the fund is aligning education, training, and employment with Vision 2040’s long-term growth objectives.

Meanwhile, the fund is moving from asset accumulation toward strategic exits. Since 2022, it has divested 19 assets, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF— raising over $2.5 billion, according to the release.

The October listing of 25 percent of OQ Exploration & Production marked Oman’s largest-ever IPO, signaling deepening liquidity in Muscat’s capital markets, according to the Global SWF May report.

OIA’s roadmap includes 30 more divestments through 2029 across sectors, including logistics, utilities, and aquaculture, aiming to crowd in private capital and raise governance standards. These IPOs are structural tools to deepen Oman’s market while supporting the transition to a knowledge-based economy.

Global investment, local value

Even as it expands abroad, OIA insists every foreign investment must deliver back home— whether in skills, supply chain resilience, or technology transfer. Recent deals illustrate this ethos.

In the US, OIA invested in Tidal Vision, a company developing climate-smart biopolymers. In Singapore, it joined a $100 million venture capital fund with Golden Gate Ventures and helped establish a Muscat-based venture office to incubate deep-tech startups.

In one of its most high-profile moves, OIA took a stake in Elon Musk’s xAI, joining fellow Gulf players like Saudi’s Kingdom Holding and Qatar Investment Authority.

The move links Omani capital to frontier technology while reinforcing the fund’s mandate to back high-potential sectors shaping the global economy.

The OIA’s operational discipline has not gone unnoticed. Since 2021, it has reduced its subsidiary debt by nearly $5.6 billion, standing at $23.92 billion as of the end of the third quarter of 2024. It also refused to issue any new government guarantees last year, according to Global SWF, boosting investor confidence. Ratings agency S&P cited OIA’s reforms and transparency in reaffirming Oman’s BBB- rating with a positive outlook.


Mawani names Al-Mazroua as new president

Mawani names Al-Mazroua as new president
Updated 24 June 2025
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Mawani names Al-Mazroua as new president

Mawani names Al-Mazroua as new president

JEDDAH: Saudi Ports Authority has appointed Suliman bin Khalid Al-Mazroua as its new president, effective June 29, as part of its push to strengthen leadership and advance key strategic goals.

Al-Mazroua succeeds Mazen bin Ahmed Al-Turki, who had been serving as acting president and played a key role in several initiatives aimed at developing logistics zones and parks across the Kingdom.

Al-Turki’s most recent contribution included overseeing the signing of a series of new build-operate-transfer contracts valued at more than SR2.2 billion ($586.6 million) to develop multi-purpose cargo terminals at eight Saudi ports.

The appointment of Al-Mazroua, announced by Mawani’s board of directors, underscores the authority’s commitment to supporting the National Transport and Logistics Strategy and Saudi Vision 2030. Both initiatives aim to position the Kingdom as a global logistics hub and a leading industrial power.

In a post on his X account, Al-Mazroua expressed his appreciation for the board’s trust and pledged to further the authority’s strategic goals.

“I extend my sincere thanks and appreciation to His Excellency the Minister of Transport and Logistics Services and Chairman of the Board of the Saudi Ports Authority, Eng. Saleh bin Nasser Al-Jasser, as well as to their Excellencies and distinguished members of the board for this generous trust,” he said.

Al-Mazroua  added: “I pray to God for success in serving our blessed country and fulfilling the aspirations of our visionary leadership. I am also very pleased to work alongside my colleagues at the Saudi Ports Authority.”

In a statement, the authority said that Al-Mazroua “affirmed his commitment to advancing Mawani’s strategic objectives and enhancing its performance in line with its development plans and transformation programs.”

Before assuming his new role, Al-Mazroua served as CEO of the National Industrial Development and Logistics Program, where he played a key role in driving economic diversification and enhancing infrastructure in key sectors, including industry, mining, energy, and logistics.

“He also played a key role in stimulating investment in these sectors with the aim of increasing their contribution to the Kingdom’s gross domestic product, promoting innovation, enhancing local content, and advancing the Fourth Industrial Revolution,” the statement added.

With more than two decades of professional experience, Al-Mazroua has held several senior leadership positions, including at Saudi Aramco from 2001 to 2017.

Over the years, he progressed from technical roles to executive leadership, contributing to the establishment of research and development centers, strengthening cybersecurity frameworks, and advancing health care sector initiatives.

He also worked at US-based Aruba Networks from November 2006 to July 2007 and previously served as a quality assurance engineer at California-based Caspian Networks.

In addition, Al-Mazroua led the National Transformation Program and the Delivery and Rapid Intervention Center, where he contributed to planning, monitoring, and accelerating the implementation of development initiatives in support of Vision 2030.

He is also a member of several boards, including the Center for the Fourth Industrial Revolution in Saudi Arabia and Marafiq Co.


Saudi Arabia, Bahrain launch 2nd phase of industrial integration 

Saudi Arabia, Bahrain launch 2nd phase of industrial integration 
Updated 24 June 2025
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Saudi Arabia, Bahrain launch 2nd phase of industrial integration 

Saudi Arabia, Bahrain launch 2nd phase of industrial integration 

RIYADH: Saudi Arabia and Bahrain have launched the second phase of their industrial integration initiative, aiming to boost bilateral trade, investment, and cross-border supply chain cooperation. 

Announced on the sidelines of the Saudi Industry Forum 2025 in Dhahran, Khalil Ibn Salamah, the Kingdom’s deputy minister for industrial affairs, emphasized that the new phase would build on prior successes between the two countries. 

This comes amid strengthening economic ties between the countries, with the Saudi Arabia’s direct investments in Bahrain reaching SR35 billion ($9.33 billion) in 2023 — representing approximately 20 percent of total foreign investments — and 1,550 Saudi-registered companies operating in the country, as revealed by the Kingdom’s Minister of Investment, Khalid Al-Falih, during a business forum earlier this year. 

In an official statement marking the latest announcement, the Saudi Ministry of Industry and Mineral Resources stated: “The second phase of industrial integration between the two countries focused on setting specific targets, including enhancing intra-trade in industrial goods, attracting industrial investments.” 

It added that this will help “integration in the field of industrial infrastructure and supply chain integration,” as well as identifying a list of export opportunities for non-oil goods and facilitating procedures for exporters and investors. 

The initiative is part of broader efforts under the Gulf Cooperation Council Economic Agreement, which aims to increase the industrial sector’s contribution to regional GDP and foster industrial coordination among member states “on an integrated basis,” according to the ministry. 

The second phase builds on earlier efforts, including the Future Factories Program, which helped shift production in both countries from labor-intensive to advanced manufacturing, along with aligning policies to treat local products as national goods and streamline customs processes. 

As part of the second-phase launch, Ibn Salamah inaugurated the Bahraini Investors Services Office in Dammam’s Third Industrial City. The event was attended by Bahrain’s Minister of Industry and Commerce, Abdullah bin Adel Fakhro. 

“The office aims to attract quality industrial investments and provide all industrial investment services to investors,” the ministry noted. 

Positioned strategically near Bahrain, approximately 130 km away, Dammam’s Third Industrial City offers a robust industrial ecosystem. 

Spanning 48 million sq. meters, the site features extensive infrastructure including a modern road network, energy and water supply systems, and logistical connectivity through its proximity to King Fahd Port, King Fahd International Airport, and the dry port in the city of SPARK. 

The Saudi Industry Forum also highlighted how the new office will offer a “package of services and enablers from the industrial and mining system to facilitate the journey of Bahraini investors,” further underscoring both countries’ commitment to deepening industrial and economic ties.