Search form

You are here

  • Home
  • Saudi Arabia poised to become Mideast’s Silicon Valley, say experts 


Saudi Arabia poised to become Mideast’s Silicon Valley, say experts 

With strategic initiatives and strong global partnerships, Saudi Arabia is cementing its place as a key player in the global tech landscape. Shutterstock
Short Url

https://arab.news/zx5df

Updated 18 April 2025
Nirmal Narayanan   
Follow

Saudi Arabia poised to become Mideast’s Silicon Valley, say experts 

Updated 18 April 2025
Nirmal Narayanan   

RIYADH: Saudi Arabia is rapidly transforming into a regional technology hub, drawing comparisons to Silicon Valley, thanks to a wave of strategic investments and high-profile initiatives, experts have told Arab News.  

At the heart of this transformation is Project Transcendence, a groundbreaking $100 billion initiative launched in 2024.   

Spearheaded by the Kingdom’s Public Investment Fund in partnership with Google, the project aims to build a comprehensive artificial intelligence ecosystem within Saudi Arabia.  

The initiative is set to bolster the growth of local tech startups, generate employment opportunities, and foster collaborations with global technology firms — positioning the Kingdom at the forefront of regional innovation.  

Complementing these efforts is the annual LEAP technology conference, which continues to gain international attention. The 2025 edition of the event attracted over 170,000 visitors and secured investments exceeding $14.9 billion, underscoring Saudi Arabia’s growing appeal as a technology and innovation destination.  

These developments are central to the Kingdom’s broader economic reform strategy under Vision 2030, which aims to diversify the economy and reduce its longstanding reliance on oil revenues.  

With strategic initiatives and strong global partnerships, Saudi Arabia is cementing its place as a key player in the global tech landscape.  




Noor Al-Nahhas, co-founder and CEO of UAE-based software company nybl. Supplied

Speaking to Arab News, Noor Al-Nahhas, co-founder and CEO of UAE-based software company nybl, said: “Saudi Arabia is rapidly transforming into a global technology hub, driven by Vision 2030’s ambitious agenda. The Kingdom is creating a robust ecosystem for tech startups to thrive while accelerating investments in AI and deep tech — technologies that are critical to furthering the progress of the sector.”   

He added: “With the emerging developments we are seeing in the Kingdom, obstacles are few — this is the Silicon Valley of the Middle East and a rising force in the global tech landscape.”   

Mamdouh Al-Doubayan, managing director of Globant for the Middle East and North Africa region, also echoed similar views. He said that Saudi Arabia’s investments in the digital infrastructure should be supported with key partnerships to achieve the desired results.  




Mamdouh Al-Doubayan, managing director of Globant for the Middle East and North Africa region. Supplied

“The Kingdom is making substantial investments in digital infrastructure while fostering an ecosystem that nurtures innovation and entrepreneurship. Key partnerships are pivotal to driving this vision forward,” said Al-Doubayan.   

The crucial SME factor  

Vikas Panchal, general manager, Middle East, for Indian multinational technology company Tally Solutions, told Arab News that small and medium enterprises in Saudi Arabia have a huge role to play as the Kingdom continues its technological evolution journey.   

“Saudi Arabia is rapidly advancing in its digital transformation journey, with SMEs playing a pivotal role in this evolution. The Kingdom’s Vision 2030 has placed technology and digitalization at the forefront of economic diversification, fostering a pro-business environment where SMEs are seen to continuously succeed in,” said Panchal.   




Vikas Panchal, general manager, Middle East, for Indian multinational technology company Tally Solutions. Supplied

He added that government-backed programs like Monsha’at’s SME support initiatives as well as investments in AI, fintech and e-commerce are equipping businesses with scalable digital tools, thus allowing them to compete on a global scale.   

“With streamlined business regulations and a growing interest in pursuing tech-driven efficiencies, Saudi Arabia is on track to becoming a global tech hub,” Panchal added.  

Homegrown innovation   

Amid these advancements, experts also highlighted potential challenges that Saudi Arabia may encounter as it strives to establish itself as a global tech destination.  

Al-Doubayan noted that while the Kingdom is making significant progress in digital transformation, addressing certain challenges will be crucial to ensuring sustainable growth.  

He pointed out that one of the key obstacles Saudi Arabia may face is building a robust talent pipeline to support the burgeoning tech sector.  

“While the Kingdom invests in education and training, attracting and retaining skilled professionals in a competitive global landscape remains critical,” said Al-Doubayan, adding: “Additionally, navigating regulatory frameworks and ensuring a supportive environment for innovation can be complex, especially as the country seeks to balance rapid technological advancement with traditional practices.”  

Panchal said that some of the challenges faced by the Kingdom include costs for digital transformation, especially among SMEs in the Kingdom.  

 “While large corporations are quickly embracing AI and automation, many SMEs still face challenges in transitioning from traditional to digital operations. The lack of expertise in adopting cloud-based financial management, tax automation, and real-time accounting can slow down their competitiveness,” said Panchal.   

He added: “For some SMEs, the initial cost of transitioning to fully digital operations can be a challenging feat. By empowering SMEs with affordable, easy-to-use technology solutions, Saudi Arabia can overcome these hurdles and accelerate toward its goal of achieving a truly tech-driven economy.”   

Al-Doubayan also expressed similar views and said that some companies are facing the risk of infrastructural limitations, as developing the necessary digital and physical infrastructure to support ambitious projects can be both time-consuming and costly.  

Al-Nahhas said that Saudi Arabia should strengthen its AI capabilities to truly achieve its tech ambitions in the future.   

“One critical factor to consider is the speed at which the global AI race is evolving. This will be a vital aspect to remain cognizant of as Saudi Arabia pushes forward in pursuit of meeting its Vision 2030 goals,” said the nybl CEO.  

He added that Saudi Arabia should try to develop its local ecosystem for technological innovation rather than importing it from other nations.   

“A striking example is DeepSeek, which in a short span has developed an AI model capable of rivalling those from Silicon Valley and disrupts the sector in unprecedented ways,” said Al-Nahhas.   

DeepSeek, a chatbot developed by China, uses advanced large language models and was first launched on Jan. 10.   

Upon its release, it quickly outpaced ChatGPT, becoming the most downloaded freeware app on the iOS App Store in the US.   

The impressive performance of DeepSeek, coupled with its relatively low cost, has made waves globally, challenging the dominance of US-based AI models.   

Thanks to its Natural Language Processing technologies, DeepSeek is able to understand, interpret, and generate human language more effectively, resulting in a 60 percent reduction in irrelevant search results compared to traditional search engines.  

Al-Nahhas added: “This highlights the sheer speed of innovation in the tech sector, but also raises a fundamental question: ‘Why should we import tech when we have the resources and vision to create it in the Kingdom?’ To truly lead, Saudi Arabia must double down on homegrown innovation — over-reliance on external solutions risks dependency and could slow progress.”  

During the recent LEAP conference, held in Riyadh from Feb. 9 to Feb. 12, Saudi Minister of Communications and Information Technology Abdullah Al-Swaha also talked about DeepSeek and said that it is beating all AI models.   

“We have to celebrate the ChatGPT moment of 2022, but we also have to appreciate the DeepSeek moment. The world does not need polarization in the intelligent age. We need to work collectively to celebrate these advancements, where DeepSeek so far is beating all AI models,” the minister said.   

Al-Nahhas added that Saudi Arabia has a massive opportunity to set global benchmarks by developing AI and deep tech in-house, and can ensure that technology is not just made for the Kingdom, but can be exported worldwide, contributing to the growth of the country’s economy.   

“Competing on the global stage requires a mindset shift: Saudi Arabia is not just a consumer of technology, we are creators, driving the next wave of innovation from the Kingdom to the world,” said Al-Nahhas.   

Dhruv Verma, founder and CEO of Thriwe, a tech-driven benefits as a platform company which expanded its presence to Saudi Arabia in 2023, said that stringent data protection laws may pose hurdles for foreign tech companies, making long-term private sector engagement vital for sustainable growth.   




Dhruv Verma, founder and CEO of Thriwe. Supplied

“As digitalization accelerates, the risk of cyber threats and data breaches increases, emphasizing the need for robust cybersecurity measures and cross-border collaborations,” said Verma.   

Arun Bruce, CEO of Dubai-based management consultancy firm TransformationX, told Arab News that Saudi Arabia should strengthen its startup ecosystem to ensure that the technology sector will thrive long term.   

He also echoed the views of Al-Nahhas that the Kingdom should avoid over-dependence on international technologies, and should develop advanced innovations locally.   




Arun Bruce, CEO of Dubai-based management consultancy firm TransformationX. Supplied

“The tech startup scene in KSA is certainly strengthening  — with multiple accelerators and government initiatives — but still has some way to go as it competes with global and regional startup hubs,” said Bruce.   

He added: “As Saudi Arabia seeks to grow, localizing its tech inputs becomes important. Companies like PIF-backed ALAT are certainly taking the Kingdom in the right direction.” 

Topics: technology suadi startups Eye On AI

Related

Saudi Arabia
Saudi AI researcher designs system to help people understand sign language
Saudi Arabia
Saudi tech authority helps drive national digital transformation with e-gates at Kingdom’s airports

Closing Bell: Saudi main index slips to close at 10,714

Updated 17 June 2025
Nirmal Narayanan 
Follow

Closing Bell: Saudi main index slips to close at 10,714

  • Parallel market Nomu shed 214.39 points to close at 26,458.24
  • MSCI Tadawul Index declined by 1.14% to 1,378.44
Updated 17 June 2025
Nirmal Narayanan 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 153.22 points or 1.41 percent to close at 10,713.82.  

The total trading turnover of the benchmark index was SR4.97 billion ($1.32 billion), with 20 of the listed stocks advancing and 228 declining. 

Saudi Arabia’s parallel market Nomu also shed 214.39 points to close at 26,458.24. 

The MSCI Tadawul Index declined by 1.14 percent to 1,378.44. 

The best-performing stock on the main market was Saudi Research and Media Group. The company’s share price increased by 6.88 percent to SR170.80. 

The share price of SABIC Agri-Nutrients Co. advanced by 4.82 percent to SR108.80.

Zamil Industrial Investment Co. also saw its stock price climb by 4.71 percent to SR40. 

Conversely, the stock price of media giant MBC Group Co. dropped by 6.56 percent to SR33.45. 

On the announcements front, Tadawul, in a statement, said that shares of Saudi low-cost air carrier flynas will begin trading on the main market under the symbol 4264 from June 18. 

The daily and static fluctuation limits for the company’s stocks will be set at 30 percent and 10 percent, respectively, during the first three days of trading.

On June 17, Saudi National Bank announced the issuance of US dollar-denominated Tier 2 debt instruments through a special purpose vehicle, targeting qualified investors both inside and outside the Kingdom.

The financial institution added that the final issuance value and offering terms will be determined based on market conditions, according to a Tadawul statement. 

The minimum subscription value is $200,000, with a 10-year maturity period. 

The debt instruments will be listed on the London Stock Exchange’s International Securities Market. 

The share price of SNB edged up by 0.58 percent to SR34.50. 

Advance International Co. for Communication and Information Technology announced that it completed the offering and subscription of SR-denominated Murabaha sukuk valued at SR6 million. 

Murabaha sukuk is a financial instrument based on Islamic finance principles, offering an interest-free investment option. 

In a Tadawul statement, AICTEC said that the offering aims to strengthen the company’s working capital as well as support capital expansions. 

The stock price of AICTEC rose by 3.57 percent to SR2.90. 

Topics: Closing Bell Saudi Stock Exchange (Tadawul)

Related

Business & Economy
Closing Bell: TASI gains 135 points after positive market breadth 
Business & Economy
Closing Bell: Saudi main index retreats to 10,731.59

IsDB Group partners with Turkiye to drive green industrial growth

Updated 17 June 2025
MOHAMMED AL-KINANI
Follow

IsDB Group partners with Turkiye to drive green industrial growth

  • Initiative supports Turkiye’s 2053 net-zero emissions target
Updated 17 June 2025
MOHAMMED AL-KINANI

JEDDAH: The Islamic Development Bank Group has partnered with Turkiye’s Ministry of Industry and Technology to advance sustainable manufacturing and infrastructure as part of a broader push to modernize the country’s industrial zones and accelerate its green transition.

The initiative supports Turkiye’s 2053 net-zero emissions target and aligns with the 12th National Development Plan (2024–28) and the 2030 Industry and Technology Strategy.

According to the Saudi Press Agency, the project aims to cluster industrial enterprises within designated zones, reducing environmental impact and promoting climate-conscious development.

While Turkiye has committed to peak emissions by 2038 and reach net zero by 2053, independent assessments question the feasibility of this goal.

Climate Action Tracker has rated the strategy as “poor,” citing a lack of ambition and transparency, and warning that the 15-year window to net zero is overly compressed.

Still, some subsectors—such as cement, iron and steel, aluminum, and fertilizers—have set clearer reduction targets, although they remain exceptions, CAT notes.

Walid Abdelwahab, director of the IsDB Group’s regional hub in Turkiye, described the project as “a vital step in fulfilling the IsDB’s commitment to supporting sustainable industrial transformation, enhancing economic resilience, and promoting climate-conscious development.”

A multidisciplinary team from IsDB’s Jeddah headquarters and Ankara office has been working closely with various government bodies and industrial zone authorities. Discussions have focused on collecting data, identifying challenges, and shaping the project in line with national investment and climate resilience goals.

According to SPA, the initiative will also address key areas such as wastewater management, improved water use efficiency, and green infrastructure, laying the groundwork for long-term sustainable industrial growth.

Topics: IsDB

Related

Business & Economy
IsDB approves over $1.3bn to drive inclusive development across member states
Special
World
New IsDB financing plan to strengthen Bangladesh’s energy, food security

Energy security is not a luxury but key to inclusive growth, says Saudi minister

Updated 17 June 2025
Nadin Hassan
Follow

Energy security is not a luxury but key to inclusive growth, says Saudi minister

  • Al-Jadaan warned the absence of reliable energy access undermines critical sectors
  • He underscored the far-reaching consequences of energy poverty
Updated 17 June 2025
Nadin Hassan

RIYADH: Energy security is not a luxury but “a fundamental pillar for achieving development and inclusive growth,” said Saudi Arabia’s Finance Minister Mohammed Al-Jadaan.  

Delivering the opening remarks at the OPEC Fund for International Development Forum 2025 in Vienna, Al-Jadaan warned that the absence of reliable energy access undermines critical sectors, including healthcare, education, productivity, and food and water systems. 

“With rising geopolitical tensions, market volatility, and surging global energy demand, it has never been more urgent to achieve a more secure and diversified energy landscape,” Al-Jadaan said. 

He added: “This requires a strategic push to diversify energy sources, scale up investment in clean technologies, and adopt innovative financing solutions to accelerate energy access and strengthen long-term energy security.” 

Four-point reform plan 

Al-Jadaan outlined four policy recommendations for multilateral development banks aimed at boosting global energy resilience. He stressed the need to support all energy sources without bias and cautioned against emissions policies that exclude major energy contributors. 

He said such policies risk destabilizing markets and disproportionately impact developing economies and vulnerable populations. 

 

 

His second recommendation focused on expanding concessional financing to underserved regions. The minister praised the World Bank’s “Mission 300” initiative, which aims to provide energy access to 300 million people in Africa, and acknowledged the contributions of the Islamic Development Bank and the OPEC Fund. 

Al-Jadaan also commended Saudi Arabia’s Forward7 Clean Fuel Solutions for Food initiative under the Middle East Green Initiative, which promotes clean fuel deployment globally. The program has partnered with institutions including the OPEC Fund, the World Bank, the Islamic Development Bank, and the International Islamic Trade Finance Corp. 

De-risking and innovation

Al-Jadaan’s third point emphasized the need to de-risk investments in the energy sector to encourage private sector involvement.  

He cited mechanisms such as partial risk guarantees, political risk insurance, and blended finance structures as essential tools to mitigate risks and enhance the feasibility of energy projects, particularly in low-income and high-risk countries. 

“These tools help mitigate expected risks and enhance the bankability of energy projects, especially in low-income and high-risk countries,” the minister said. 

In his final point, Al-Jadaan called for stronger investment in technologies such as carbon capture and sustainable hydrocarbon applications to reduce emissions and maintain supply during the transition to net-zero. 

He underscored the far-reaching consequences of energy poverty, including economic instability, forced migration, and increased humanitarian pressures. 

Al-Jadaan reaffirmed the Kingdom’s aim to generate 50 percent of electricity from renewables by 2030 and achieve net-zero emissions by 2060. These goals are being pursued under the Circular Carbon Economy framework. 

“In the Kingdom of Saudi Arabia, we are working with everyone to enhance energy security and eliminate energy poverty, while continuing efforts to combat climate change,” he said. 

Development crisis warning 

OPEC Fund President Abdulhamid Al-Khalifa also addressed the forum, warning of a worsening global development gap.  

He said the world is facing what the UN secretary-general has described as a “development emergency,” pointing out that only 18 percent of Sustainable Development Goals have made measurable progress since their inception in 2015. 

“Developing countries face a $4 trillion annual funding gap, worsened by rising debt servicing costs that are draining resources from essential services,” Al-Khalifa said. 

To address this, he said the OPEC Fund is ramping up efforts and leveraging momentum from previous forums. Among its recent actions, the fund has joined the “Mission 300” initiative to expand energy access. 

It has also deployed $1 billion as part of its food security action plan, committed an additional $2 billion to support food supply chains in partner countries, and allocated $1 billion to combat desertification under the Arab Coordination Group's $10 billion Riyadh Global Drought Resilience Partnership. 

New trade facility 

Al-Khalifa also announced the launch of the OPEC Fund Trade Facility Initiative, a program designed to mobilize billions of dollars in support through 2030. 

The facility aims to help countries secure strategic imports, address trade-related liquidity gaps, and strengthen resilience against external economic shocks. 

“This is a direct response to an urgent need, and a reflection of our commitments to stand by our partners when it matters most,” he said. 

Al-Khalifa emphasized the growing strain on trade as a development cornerstone, citing disrupted supply chains, rising costs, and foreign exchange volatility that are affecting the most vulnerable communities.  

Project milestones 

In 2024, the OPEC Fund committed $2.3 billion to 70 projects across the globe — a 35 percent increase compared to the previous year. 

These projects connected 300,000 households to electricity, built over 500 km of roads, and supported 75,000 farmers and 35,000 women. 

As the Arab Coordination Group marks its 50th anniversary this year, Al-Khalifa noted the significance of this milestone, saying the OPEC Fund is honored to stand alongside other member institutions in celebrating five decades of collaborative development efforts. 

“We know from experience, when partners align their resources, expertise, and approaches, the results are transformative,” he said. 

Both Al-Jadaan and Al-Khalifa stressed that global cooperation and innovation are critical to overcoming current challenges and advancing toward a future of inclusive and sustainable development. 

Topics: OPEC Fund Mohammed Al-Jadaan

Related

Business & Economy
SIC, Investindustrial forge alliance to drive Saudi industrial expansion

Business & Economy
Foreign ownership in Saudi equities tops $105bn despite market pullback

Saudi Arabia, Panama sign air transport agreement to strengthen global connectivity

Updated 17 June 2025
NOUR EL-SHAERI   
Follow

Saudi Arabia, Panama sign air transport agreement to strengthen global connectivity

  • Deal signed during 55th edition of Paris Air Show
  • It reflects Kingdom’s broader efforts to expand its global aviation footprint
Updated 17 June 2025
NOUR EL-SHAERI   

RIYADH: Saudi Arabia and Panama have signed a bilateral air services agreement to enhance air connectivity between the two countries and expand access to global aviation markets.

The deal was signed during the 55th edition of the Paris Air Show by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, and establishes a regulatory framework for safe, efficient, and fair air services, according to the Saudi Press Agency.

The new agreement complements the 1944 Chicago Convention on International Civil Aviation, the legal foundation for global air travel. It includes provisions on traffic rights, airline designation, and licensing, as well as the enforcement of international safety and security standards.

It is also designed to promote fair competition and support the long-term commercial interests of national carriers in both countries.

The deal aims to serve the common economic interests of national carriers and enhance their participation in the air transport market by applying modern market-entry models and supporting all forms of air traffic, SPA reported.

It reflects the Kingdom’s broader efforts to expand its global aviation footprint in line with Vision 2030. As part of its National Aviation Strategy, the country is building international partnerships, strengthening regulatory frameworks, and increasing air connectivity to link to 250 global destinations and transport 330 million passengers annually by 2030.

“The organization’s participation aims to highlight the role of the civil aviation sector in the Kingdom as an important driver of the national economy, the promising investment opportunities it offers, and to learn more about the latest innovative global technologies in the sector,” the report added.

Saudi Arabia, represented by GACA, concluded its participation at the Paris Air Show with a wider range of strategic announcements aimed at bolstering its aviation sector. Key outcomes included a memorandum of understanding with Airbus on environmental sustainability and aviation safety, a leasing deal for 77 new aircraft by Avilease, and Riyadh Air’s order for 50 Airbus A350-1000 jets, increasing its future fleet to 182 aircraft in line with Vision 2030’s goal of positioning Riyadh as a global air hub.

The Saudi delegation was led by Saleh Al-Jasser, minister of transport and logistic services and chairman of GACA, accompanied by GACA president and senior executives from across the Kingdom’s aviation ecosystem. Their participation focused on strengthening partnerships with leading aerospace companies, attracting investment into the Saudi aviation sector, and advancing bilateral cooperation.

During the show, Al-Jasser and the delegation toured various pavilions showcasing innovations in advanced air mobility, aerospace, sustainability, and smart manufacturing.

They observed emerging solutions featuring high levels of automation and digitization across both commercial and military aircraft.

In addition to the MoU with Airbus, the show saw key commercial signings. Avilease, a Public Investment Fund-owned leasing firm, agreed to purchase 77 new-generation aircraft, including A350 freighters and A320 narrow-body jets. Riyadh Air confirmed an order for 50 A350-1000 aircraft, part of its plan to turn Riyadh into a global aviation hub.

A separate agreement was signed between Cluster 2 Airports Co. and Airbus to explore collaboration opportunities in training, development, and investment.

Al-Duailej also met with several global aviation leaders, including Damien Caze, director general of the French Civil Aviation Authority; Arjan Meijer, CEO of Embraer; and Bahrain’s Minister of Transportation and Telecommunications Sheikh Abdulla Al-Khalifa, to discuss regional cooperation.

The Kingdom’s presence at the Paris Air Show underscored its commitment to civil aviation as a driver of economic growth, innovation, and international connectivity. The event is one of the world’s most prominent in the aerospace industry, attracting thousands of participants and showcasing the latest in aviation, defense, and space technologies.

Topics: Saudi Arabia Panama Saudi General Authority of Civil Aviation (GACA) aviation

Related

Business & Economy
PIF’s AviLease to acquire up to 77 Airbus jets in expansion drive

Business & Economy
Riyadh Air orders up to 50 Airbus A350 jets to expand long-haul fleet 

SIC, Investindustrial forge alliance to drive Saudi industrial expansion


Updated 17 June 2025
Nour El-Shaeri
Follow

SIC, Investindustrial forge alliance to drive Saudi industrial expansion


  • Deal aims to catalyze new industrial investments in the Kingdom
Updated 17 June 2025
Nour El-Shaeri

RIYADH: SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, has entered into a strategic partnership with European private equity firm Investindustrial, marking its first international private equity commitment.

The agreement is aimed at catalyzing new industrial investments in the Kingdom by localizing advanced manufacturing and integrating Saudi small and medium-sized enterprises into Investindustrial’s global value chains.

The partnership is a significant milestone for SIC as it broadens its international engagement and supports Saudi Arabia’s Vision 2030 objectives. These include attracting institutional capital, localizing industrial expertise, and contributing to the National Industrial Strategy, which targets increasing the number of factories to 36,000 by 2035.

The announcement follows a previous agreement in March between SIC and Ashmore Investment Saudi Arabia to launch a private closed-end industrial fund. The SR400 million ($106.6 million) initiative — the first of its kind in the Kingdom — is managed by a global asset manager and aims to support a wide array of industrial assets. That move laid the foundation for SIC’s private equity strategy to stimulate domestic investment and expand global partnerships.

“This agreement represents a new chapter for SIC,” said Fahad Al-Naeem, CEO of SIC. “By partnering with Investindustrial, we’re bridging global reach, operational depth, and industry specialization into our ecosystem, positioning Saudi Arabia as the platform for regional and international manufacturing growth.”

The targeted sectors include machinery and equipment, automation, medical devices, and sustainable consumer products, with an emphasis on local value creation and industrial innovation.

This move comes as the Kingdom ramps up efforts to strengthen its industrial base and draw international investment into strategic sectors. In April, Saudi Arabia’s Industrial Production Index rose 3.1 percent year on year, led by gains in manufacturing and mining. Manufacturing activity alone climbed 7.4 percent annually, with a 0.5 percent uptick month on month.

Adding to this momentum, the government launched the Standard Incentives for the Industrial Sector program in May, offering up to 35 percent financing on initial capital expenditure per project, capped at SR50 million. The initiative supports facility development and operations over a seven-year term.

“SIC will utilize its local market expertise to pave the way for global manufacturers to establish a footprint in Saudi Arabia and connect with international supply chains, benefiting from the Kingdom’s competitive position,” Al-Naeem added.

Investindustrial, which has raised €17 billion and operates across eight global offices, focuses on mid-market companies with a mission to drive sustainable value creation and support global expansion.

“The Kingdom of Saudi Arabia has emerged as a key strategic growth region for Investindustrial’s portfolio companies,” said Andrea Bonomi, chairman of Investindustrial.
“Many of our investments align closely with the goals of Saudi Arabia’s Vision 2030, fostering strong and natural synergies for long-term value creation,” Bonomi added.

The signing ceremony was attended by Prince Sultan bin Khaled, vice chairman of SIC, and Italy’s Ambassador to Saudi Arabia, Carlo Baldocci, reflecting the high-level support backing the agreement.

The deal further advances SIC’s role as a gateway for institutional-grade industrial investment into Saudi Arabia, reinforcing its mandate to help build a globally competitive and resilient manufacturing sector.

Topics: Investment

Related

Business & Economy
Foreign ownership in Saudi equities tops $105bn despite market pullback
Business & Economy
Energy security is not a luxury but key to inclusive growth, says Saudi minister

Latest updates

Iran asks its people to delete WhatsApp from their devices
Four years with a company counts as loyalty in the modern job market, HR summit hears
Saudia Airlines confirms flight from Jeddah diverted after bomb threat has landed safely
Inspections by authorities confirmed the aircraft was secure and the bomb threat was false. (Supplied)
Iran will reportedly share images of captured Israeli fighter jet pilots ‘soon’
What We Are Reading Today: Forest Euphoria by Patricia Ononiwu Kaishian

Search form

Print Edition
Read pdf version Subscribe now
© 2025 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.