According to a report by the New York Times, the government of Saudi Arabia is planning to create a fund of approximately $40 billion to invest in artificial intelligence.

The Public Investment Fund (PIF) of Saudi Arabia has been discussing a possible partnership with venture capital company Andreessen Horowitz and other financiers in recent weeks.

The report suggests that PIF and Andreessen Horowitz have discussed the possibility of the U.S. firm setting up an office in Riyadh.

The plan is to launch the artificial intelligence fund in the second half of 2024, and other venture capitalists may join the fund.

PIF officials have indicated that the country is interested in supporting various tech start-ups associated with artificial intelligence, including chip makers and large-scale data centers.

The report suggests that the fund’s plans could still change.

Last month, PIF’s governor Yasir Al-Rumayyan pitched the kingdom as a possible hub for Ai activity outside the U.S., citing its energy resources and funding capacity.

Al-Rumayyan had said that the kingdom had the “political will” to make Ai projects happen and ample funds it could deploy to nurture the technology’s development.

Neither PIF nor Andreessen Horowitz have commented on the news yet.

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Dubai’s 81st meeting of the Supreme Council of Energy was chaired by H.H. Sheikh Ahmed bin Saeed Al Maktoum, the council’s Chairman.

The meeting was held virtually and attended by Saeed Mohammed Al Tayer, the Vice Chairman of the Dubai Supreme Council of Energy.

Other attendees included Ahmed Buti Al Muhairbi, the Secretary-General of the Dubai Supreme Council of Energy, and board members from various organizations.

The council discussed the Demand Side Management Strategy for 2030 and 2050, which aims to reduce water and electricity consumption through green building activities, building retrofits, efficient operation of industrial and government facilities, and the use of treated wastewater, external lighting, and cooling.

The council is committed to making Dubai a leading example in efficient energy and water demand management.

Al Tayer mentioned that the council regularly reviews programs to reduce water and electricity consumption with the participation of public and private organizations, in line with the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Ruler of Dubai, to promote a green economy and sustainable development.

The council’s efforts aim to achieve standards and mechanisms that demonstrate the effectiveness of implementation and the percentages achieved in energy resource management.

Al Muhairbi noted that updating the council’s existing strategies reflects the degrees of achievement of the set goals to ensure the effectiveness of the existing programs, aligned with the desired goals in the areas of sustainable development for Dubai.

The council also discussed recommendations to increase the infrastructure for electric vehicle charging stations across the Emirate.

The council looks forward to supporting private companies in building and installing charging stations in line with the public-private partnership model.

As of the end of January, the number of electric and hybrid vehicles in Dubai reached 49,300, and more than 390 charging stations were installed.

The number of charging stations will increase in the coming years.

More on Visions:

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vision2040.

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Shell has recently released its first progress report on energy transition, after the implementation of its Powering Progress strategy in 2021.

During the Capital Markets Day event in June 2023, Shell emphasized how its strategy is designed to generate more value while producing fewer emissions, with a particular emphasis on the “more value” aspect.

This energy transition update focuses on how the strategy effectively delivers “fewer emissions.”

Shell aims to achieve net-zero emissions across all operations and energy products by 2050, which marks a significant shift for the business.

The company is confident that this commitment aligns with the ambitious objectives of the Paris Agreement, which aims to limit global warming to 1.5°C above pre-industrial levels.

Shell’s approach advocates for a balanced and orderly transition from fossil fuels to low-carbon energy solutions, ensuring that energy remains secure and affordable.

According to Wael Sawan, Shell’s CEO, “Energy has significantly contributed to human progress, enabling many worldwide to lead more prosperous lives. Currently, the global community faces the dual challenge of meeting increased energy demands while addressing the pressing issue of climate change. The swift advancements in energy transition observed in recent years across various countries and technologies bolster my firm belief in our strategic direction.”

Sawan further remarked, “Our investment of $10-15bn between 2023 and 2025 in low-carbon energy solutions positions us as a major player in the energy transition.

“Moreover, in 2023, our expenditure on low-carbon solutions reached $5.6bn, accounting for over 23% of our total capital investment” He added.

Shell’s investments in emerging technologies, including electric vehicle charging infrastructure, biofuels, renewable energy, hydrogen, and carbon capture and storage, are instrumental in reducing emissions for both Shell and its customers.

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The company aims to scale these technologies to ensure they become an economical option for consumers.

Shell’s advocacy efforts are now focused on pivotal areas deemed essential for the energy transition, such as supporting policies that align with national net-zero goals, including carbon pricing, providing the secure energy supply the world requires, influencing demand shifts, and expanding low-carbon solutions.

In 2023, Shell surpassed 60% of its objective to cut emissions from its operations in half by 2030, relative to its 2016 levels.

This exceeds the commitments made by the signatories of the Oil and Gas Decarbonization Charter established at COP28.

Shell was among the pioneers in setting a goal for near-zero methane emissions by 2030.

In 2023, the company attained a methane emissions intensity of just 0.05%, well below its target of 0.2%. Additionally, Shell contributed to the World Bank’s Global Flaring and Methane Reduction Fund in 2023, further endorsing collective efforts to minimize methane emissions and flaring.

“In 2023, we met our objective to lower the net carbon intensity of the energy products we offer, achieving a 6.3% reduction from 2016 levels – marking the third year in a row we’ve reached our goal,” Sawan observed. “To further the decarbonization of the transport sector, we’ve set a new goal to reduce emissions from the use of our oil products by 15-20% by 2030, in comparison to 2021 divs.

He exclaimed that “We are expanding our power business, including renewable energy ventures, in regions such as Australia, Europe, India, and the USA, and have ceased direct energy supply to residential homes in Europe.”

More on vision2030:

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Saudi Arabia has recently attracted around $13 billion in private investments for its developing tourism industry, positioning the country as an upcoming travel destination.

These investments are expected to bring in between 150,000 to 200,000 new hotel rooms within the next two years, as part of the country’s ambitious plans to expand its tourism offerings.

Princess Haifa Al Saud, Saudi Deputy Minister of Tourism, mentioned in an interview with Bloomberg that the Kingdom aims to increase tourism revenues to $85 billion this year, up from around $66 billion in 2023.

This initiative aligns with Crown Prince Mohammed bin Salman’s broader economic vision, which seeks to diversify the nation’s income streams beyond oil and include sectors like sports and technology.

Currently, the tourism sector contributes 4.5% to the GDP, and the country aims to increase its contribution to 10% by 2030 by including ways to add a to Boost in tourism.

The government is investing heavily in large-scale development projects such as the Qiddiya Entertainment City and has also made significant investments in football, further enhancing its global appeal as a travel destination.

Saudi Arabia is the only bidder for hosting the 2034 World Cup. In 2023, the country welcomed 100 million tourists, mostly domestic travelers, with international visitors accounting for about 27 million.

The majority of these arrivals were for religious or business purposes, although leisure travel is expected to increase as several major tourism projects are still underway.

The government’s vision is to secure up to $80 billion in private tourism investment by 2030, along with a plan to invest about $800 billion in the sector over the next decade.

More on Vision2023:

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According to an analysis of General Authority for Statistics data by the Ministry of Economy and Planning, non-oil activities in Saudi Arabia reached a milestone, achieving a 50% share of the country’s real GDP in 2023, the highest level ever recorded. 

This translates to a non-oil economy worth SAR1.7 trillion (approximately $453 billion) at constant prices, powered by consistent growth in investment, consumer spending, and exports. 

The significant contribution from non-oil sectors is attributed to a surge in private-sector investment over the past two years, with a growth rate of 57%. 

The report states that this growth pushed private investment to a record high of SAR959 billion ($254 billion) in 2023, with arts and entertainment activities leading the pack with an exceptional 106% growth between 2021 and 2022. 

Other sectors such as accommodation, food services, transportation, and storage also witnessed robust growth, expanding by 77% and 29%, respectively. 

The ministry stated in its report that “the growth in non-oil activities during 2023 is noteworthy for its diversity and momentum across various sectors. 

Social services, including healthcare, education, and entertainment, saw a 10.8% increase, followed by transportation and communication (3.7%) and trade, restaurants, and hotels (7%).” 

Real service exports, primarily driven by tourist spending, have skyrocketed over the past two years, experiencing a growth rate of 319%. 

This reflects the significant impact of Saudi Arabia’s transformation into a global tourism and entertainment destination, further propelling economic diversification and growth engines. 

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According to the Sovereign Wealth Fund Institute, the Public Investment Fund (PIF) of Saudi Arabia has seen a significant increase in its total assets, reaching $940.26 billion after a surge of $163.6 billion.

This growth can be attributed to Saudi Arabia’s decision to transfer an 8% stake in oil giant Aramco to the portfolio companies of the PIF. As a result, the PIF has risen to become the fifth-largest Sovereign Wealth Fund worldwide.

The value of the stake transferred was estimated at $163.6 billion based on Aramco’s market capitalization, according to LSEG data.

The PIF directly owns a 4% stake in Aramco, which was transferred in 2022, and an additional 4% indirectly, which was transferred last year to its wholly owned unit Sanabil Investments.

The four largest Sovereign Wealth Funds globally are the Norway Government Pension Fund Global ($1.65 trillion), China Investment Corporation ($1.35 trillion), SAFE Investment Company ($1.09 trillion), and Abu Dhabi Investment Authority ($993 billion).

Following this latest transfer, the state now holds an 82.186% stake in Aramco.

About Saudi Aramco outside of the PIF transfer:

Saudi Aramco, based in Dhahran, Saudi Arabia, is the world’s largest oil producer. The company is primarily state-owned and has been officially named the Saudi Arabian Oil Company. It is considered the world’s most profitable company, surpassing even tech giants such as Apple (AAPL) and Alphabet’s Google (GOOGL).

In 1933, the Saudi Arabian government and the Standard Oil Company of California signed a concession agreement, which led to the establishment of Saudi Aramco. The company started drilling operations soon after and began commercial oil production in 1938.

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According to the state-owned Saudi Press Agency, the international technology conference LEAP 24 has attracted investment deals worth $888 million. 

The investments include funds for venture capital and start-ups and are intended to support innovation and tech entrepreneurship in the region.  

Investcorp launched a $500 million fund to target Saudi businesses in their growth stages. 

 The National Development Fund and the Social Development Bank established the $40 million Gaming and Esports Investment Fund, managed by Impact46. 

Merak Capital also established an $80 million fund to back game accelerators in the kingdom.  

Furthermore, another fund worth $50 million was launched by Takamol Holdings to support early-stage firms, while Plug and Play and X by Unifonic announced two more funds to support technology start-ups and business software services for young businesses.  

In addition, Saudi-based start-ups raised a total investment of $53.4 million. Among them, BRKZ, an international information technology firm secured $8 million in a Series A round. 

 FanZ, an AI-enabled sport tech secured $1.5 million in pre-seed funding, and Lawazem, an online B2B supplies player secured $8 million, among many others. 

About LEAP 2024: 

LEAP 2024 was a highly successful technological conference that attracted 50,000 guests from outside the Kingdom.  

Al-Khamisi proudly declared it as the most attended conference of its kind in the world, with a total of 215,000 visitors. 

This contributed to a surge in hotel occupancy rates in Riyadh, which reached 99 percent during the conference. Furthermore, many new projects were announced at the event. 

investments totaling $13.4 billion, showcasing the Kingdom’s growing economy in the global tech landscape. 

 Read More about LEAP 2024

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A new report by consulting firm Oliver Wyman reveals that the commercial aviation fleet is expected to grow by 28% in the next decade, from 28,400 to 36,400 aircraft by 2034.

The Middle East region will see an even more significant increase of 51% from 1,472 to 2,227 planes.

However, COVID-19 has had a lasting impact on the industry, wiping out six years of growth, and the fleet is expected to reach 39,000 planes by 2036.

According to Anthony DiNota, Vice President of Oliver Wyman’s CAVOK, the industry is finally out of recovery mode and on a growth trajectory.

The report also suggests that the Middle East will gain a larger share of the global fleet, due to factors such as its central location, strong established players in the market, and the addition of new players.

The region’s economic diversification plans will also play a significant role in fueling the growth of the aviation industry.

The report further predicts that the maintenance, repair, and overhaul (MRO) sector will grow by almost 3% in 2024, reaching $104 billion.

It is expected to expand by an average of 1.8% annually The forecast has revealed some key findings regarding the aviation industry worldwide.

Firstly, the industry has now matched its pre-COVID peak globally, but growth moving forward will be slower.

The fleet is expected to expand at a rate of 2.5% annually, compared to the 2.9% projected in the previous forecast.

Narrowbodies will see a steady increase in their share of the fleet, rising from 61% in 2024 to 63% in 2034. The growth is driven by the resurgence of domestic air travel worldwide, which is projected to surpass the pre-COVID peak.

Secondly, the Middle East fleet is projected to grow at an annual rate of 4.2% from 2024 to 2034, outstripping growth rates in most parts of the world, including Africa (2.3%), Latin America (1.9%), North America (1.8%), and Western Europe (1.0%). Narrowbodies will be the primary driver of this growth.

In this region, narrowbodies will climb from 40% to 47% of the fleet over the decade, while widebodies will decrease from 56% to 50%.

Thirdly, India will overtake China as the industry’s growth leader for the first time ever, with the Indian fleet expected to expand almost 13% over the first five years of the forecast period and nearly 10% for the entire 10 years. Currently at about 600 planes, the Indian fleet will be 2.5 times the size it is today by 2034.

Lastly, the aviation’s global aftermarket, known as MRO, keeps aircraft flying. The overall MRO market in the Middle East is expected to grow at an annual rate of 2.3% (vs. 1.8% globally) from 2023 to 2034 and will be driven by local capabilities development to capture value leakage. It is slated to be worth nearly $16 billion by 2034 (vs. $124 billion globally).ion globally).

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Investopia 2024, the third edition of the two-day investment event, was recently held in Abu Dhabi. It provided a new investment roadmap for business communities, investors, decision-makers, and global financial institutions, particularly in the new economic sectors. 

The event discussed key themes surrounding sustainable economic development and helped strengthen dialogue between the private and government sectors to find solutions to the current global economic challenges. 

The fourth edition is scheduled for February 26 and 27, 2025.  

Investopia 2024 focused on exploiting capital flows in emerging industries in promising markets, directing global investment flows to sectors like human capital, infrastructure, fintech, clean energy, circular and creative economies, health sector and AI. 

Economic diversification acceleration and the development of legislation and policies that support the flexibility and competitiveness of economies worldwide were also discussed. 

Over 2,700 participants from different corners of the world attended Investopia 2024, where more than 80 speakers addressed investment trends, opportunities, and challenges in future economic sectors. 

The event hosted more than 40 panel discussions and roundtables, bringing together leaders, ministers, decision-makers, major investors, entrepreneurs, and economists to contribute to shaping the future of the global investment landscape. 

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Investopia 2024 signed more than 15 agreements and MoUs with national and global institutions and companies with the aim of exchanging experiences and best practices in innovative and creative fields and enhancing cooperation for Investopia 2025.  

The second edition of the Future 100 initiative was launched during the event, a joint initiative by the Ministry of Economy and Government Development and the Future Office. 

The initiative aims to foster businesses operating in future economic sectors. Investopia 2024 offered the Future 100 participants an ideal platform to connect with global investors and learn about the latest investment trends.

 Mubadala Investment Company, ADQ, Crypto.com, Standard Chartered, Citibank, First Abu Dhabi Bank, Emirates Development Bank, the Global Forum for Entrepreneurship and Investment SALT, and the iConnections platform cooperated in organizing the third edition of Investopia. 

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The Ministry of Industry and Mineral Resources reported a 10 percent increase in industrial body units in Saudi Arabia, rising to 11,549 in 2023.

Jarrah bin Mohammed Al-Jarrah, spokesman for the Minister of Industry and Mineral Resources stated:

As per the statement by the spokesperson of the ministry, 11,549 factories have received new licenses for 25 industrial activities.

The total estimated investment in these activities is SAR1.541 trillion (USD 399 billion).

The top four activities that received licenses are food products manufacturing, non-metallic mineral products manufacturing, formed metal products manufacturing, and rubber and plastic products manufacturing.

The highest number of industrial licenses totaling 1,043 were issued to National establishments.

licenses were issued to joint and foreign investments 336 with 142 and 194 respectively.’

The Ministry of Industry and Mineral Resources releases industrial indicating data monthly through the National Industrial and Mining information center.

SMEs accounted for the overwhelming majority of the licenses issued accounting for the kingdom’s efforts to support rising businesses which totaled to:

The number of licenses depending on enterprise size:

• Micro-sized enterprises: 15 licenses.
• Small-sized establishments: 1,203 licenses.
• Medium-sized establishments: 158 licenses.
• Large-sized establishments: 3 licenses.

licenses per region:

• Riyadh region: the region had the highest number of licenses issued at 479.
• Eastern region: the second highest number of licenses issued at 340.
• Makkah region: the second highest number of licenses issued at 269.
• Qassim region: the fourth highest number of licenses issued at 87.
• Madinah region: the least number of licenses issued at 79.

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