COP16 opens in Riyadh with $2bn pledged to combat global drought crisis
COP16 opens in Riyadh with $2bn pledged to combat global drought crisis/node/2581508/business-economy
COP16 opens in Riyadh with $2bn pledged to combat global drought crisis
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COP16 will run from Dec. 2 to 13 in Riyadh. AFP
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Updated 02 December 2024
REEM WALID
MANAL AL-BARAKATI
COP16 opens in Riyadh with $2bn pledged to combat global drought crisis
Updated 02 December 2024
REEM WALID MANAL AL-BARAKATI
RIYADH: A landmark initiative to tackle droughts secured $2 billion in funding on the opening day of COP16 in Riyadh.
In what is the largest-ever meeting of the UN Convention to Combat Desertification, COP16 President Abdulrahman Abdulmohsen Al-Fadhley announced the Riyadh Drought Resilience Partnership during a first day filled with high-level speeches.
Initially funded with $150 million from Ƶ, more financing for the partnership was announced by the Islamic Development Bank and the OPEC Fund for International Development, with both pledging $1 billion each.
Drought has become a persistent reality for much of the world, increasing by nearly 30 percent over the past two decades and now accounting for 15 percent of all natural disasters globally. By 2050, three out of every four people on Earth could be affected, according to data shared during the opening session of COP16, which runs from Dec. 2 to 13.
“The launching of the Riyadh Global Drought Resilience Partnership aims at promoting multilateral efforts to promote resilience, namely in the countries most impacted by drought. It includes proactive partnerships to support the UNCCD,” Al-Fadhley said as he announced the new initiative.
During the Ministerial Dialogue on Drought Resilience, chairman of the Islamic Development Bank Muhammad Al-Jasser set out his institution’s motivation for injecting funds into the partnership, saying: “Drought remains an ever-present challenge. Of the 10 countries most exposed in 2024, six are Islamic Development Bank members.”
A delegate representing the OPEC Fund for International Development said its “substantial commitment” reflects a determination to support proactive solutions that restore degraded land, strengthen resilience, and enhance the well-being of vulnerable communities.
Ƶ’s leadership in launching the Riyadh Drought Resilience Partnership was lauded as a proactive move to address the escalating crisis.
“The global community is looking to us for tangible solutions. Strong political will and ambitious targets are essential,” said a South African delegate, urging the adoption of practical measures, including public-private partnerships and harmonized financial flows to build resilience.
Growing crisis: ‘Drought is no longer a future threat’
Speakers at the high-level ministerial dialogue painted a stark picture of the cascading effects of drought, from reduced crop yields and food insecurity to disrupted water and energy systems.
“A child born during a drought is more likely to suffer permanent learning deficiencies, which may pass on to future generations. This crisis perpetuates cycles of poverty and fragility,” warned Saroj Kumar Jha, global director for water at the World Bank.
The organization has discovered that developing economies are ten times more likely to suffer severe economic repercussions from drought compared to wealthier nations.
A call for unified action
Innovation also took center stage at COP16, with the launch of the World Drought Atlas. The Atlas provides critical insights into drought’s impacts on agriculture, ecosystems, and vulnerable communities.
Technologies like early warning systems and satellite monitoring were highlighted as vital tools in forecasting and mitigating drought risks.
“For every dollar invested in proactive measures such as land restoration, the return can be up to $10,” said the UNCCD Executive Secretary Ibrahim Thiaw.
A defining moment for global resilience
The conference signals a turning point in addressing drought not as an isolated event but as a systemic crisis requiring coordinated global action.
“Drought management must shift from reactive crisis response to long-term preparedness and resilience,” said Thiaw, calling for investments in sustainable land management, inclusive solutions, and innovative financing mechanisms.
MENA emerges as global business travel hotspot amid digital and economic boom
The sector is projected to grow 6.1 percent year on year in 2025, according to a report by UAE-based travel platform Tumodo
Updated 13 September 2025
Miguel Hadchity
RIYADH: As global business shifts toward emerging markets, the Middle East and North Africa is seeing steady growth in corporate travel, strengthening its position as a rising business travel hub.
The sector is expanding faster than the global average — reaching $18.1 billion in 2024 and projected to grow 6.1 percent year on year in 2025, according to a report by UAE-based travel platform Tumodo. Investors, airlines, and hospitality giants are already taking note of the region’s transformative potential.
MENA’s business travel bookings surged 40 percent in early 2025 compared with late 2024, with April and May marking the busiest months post-Ramadan.
The broader market is expected to hit $270.8 billion by 2030, fueled by infrastructure development, digital innovation, and deepening economic ties with Europe and Asia.
“The impressive 50 percent year-on-year growth we’ve seen this year signals a shift from recovery to reinvention,” said Stan Klyuy, chief commercial officer of Tumodo, in the report, noting that average airfares are down by 12 percent and hotel bookings up by 2 percent.
Rita Raad, senior principal of strategy and transformation of the public sector at FTI Consulting, explained in an interview with Arab News: “The 40 percent surge in business travel bookings to MENA in the first half of 2025 reflects a powerful mix of regional momentum and shifting global priorities.”
She added: “Much of this growth is driven by the GCC (Gulf Cooperation Council), where the economy is projected to grow 4.2 percent in 2025-26 compared to about 1.5 percent in Europe, fueled by 3.7 percent non-oil sector expansion and diversification efforts.”
Oil and gas, technology, and finance remain the biggest corporate travel drivers, according to Raad, while Ƶ’s giga-projects continue to draw waves of consultants, engineers, and operators.
Hassan Malik, tourism and sport consulting leader and partner at Deloitte Middle East. (Supplied)
Hassan Malik, tourism and sport consulting leader and partner at Deloitte Middle East, told Arab News that the region is indeed “witnessing a remarkable rebound and reinvention in corporate travel.”
A key catalyst of business travel growth, according to Malik, is “the influx of mega-projects and infrastructure in Ƶ, like Qiddiya, Neom, and the Red Sea project, drawing global business and investment interest.”
Meshal Al-Faras, head of Middle East, Africa and Central Asia at Janus Henderson, told Arab News: “We are seeing a sustained shift in how international companies and investors view this region, and Ƶ is a clear driver of that momentum.”
He added: “The objectives of Vision 2030 are being implemented at scale across infrastructure, logistics, finance and tourism. That level of clarity and execution attracts interest from global organizations that want to grow in a stable and high-potential market.”
Travel trends
According to Tumodo’s report, Ƶ led as the top destination for users of the platform, accounting for 20 percent of all travel, followed by the UK at 15 percent, and France and India each at 10 percent.
Regional airlines Emirates, Turkish Airlines, and Qatar Airways dominated preferences, while India emerged as the most affordable route and the UK as the premium choice.
Regarding the trend for bleisure — trips that blend business with leisure — Raad noted: “The concept of bleisure continues to shape corporate mobility in MENA, with 25 percent of business travelers now extending their stays for leisure, especially among younger generations prioritizing work-life balance.”
She mentioned that airlines such as Qatar Airways, Etihad, Emirates, and Saudia were responding by enhancing their in-flight and ground services to cater to bleisure travelers.
Rita Raad, senior principal of strategy and transformation of the public sector at FTI Consulting. (Supplied)
These upgrades included features such as fully lie-flat seats, priority lounge access, and flexible entertainment and dining options, enabling passengers to work comfortably and relax during flights and transit.
Malik said that bleisure has now become mainstream, with many travelers extending work trips for personal time or combining them with relaxation. He noted that business travelers are increasingly staying longer to explore local destinations.
“Airlines are responding by introducing premium economy offerings, enhanced Wi-Fi, and flexible stopover packages, and Emirates and Etihad also now routinely promote wellness and sightseeing add-ons,” added Malik.
Al-Faras commented that the idea of business travel being limited to boardrooms no longer reflects how people operate, adding that executives want both flexibility and quality when they travel.
He added: “In Ƶ and across the GCC, we are seeing that expectation being met with strong investment in premium hospitality, high service standards, and facilities that allow people to work and relax in the same setting.”
Sustainability and tech
On sustainability efforts, Raad explained that MENA’s business travel sector is increasingly balancing growth with sustainability by embedding CO2 tracking and AI-driven cost optimization into corporate travel operations.
“Platforms like Tumodo now let companies forecast spending, measure emissions, and enforce eco-friendly routing — optimizing for shorter flights, sustainable hotels, and consolidated itineraries — and delivering emissions reductions of up to 20 percent,” she added.
Malik added that sustainability is becoming central to corporate travel strategy in MENA, noting that national targets in the UAE, Ƶ, and Qatar all aim for net-zero emissions in the coming decades through Vision 2030 and national energy strategies. He emphasized that “sustainability is increasingly core to corporate travel strategy in MENA.”
Malik noted that businesses are aligning procurement, travel, and logistics with green standards, prioritizing local suppliers and offset schemes via platforms like MENA’s Global Carbon Council, the region’s first voluntary carbon offsetting program.
Investor takeaways
Looking at investment opportunities, Al-Faras stated: “I believe the $270 billion projection is realistic as this growth is supported by what we are seeing across the GCC.”
He added that there is strong demand for physical infrastructure — ranging from airports and rail to hotels and event spaces — as well as for digital platforms that support business travel and mobility. Al-Faras noted that Ƶ has developed a pipeline of projects in these areas and has shown “a clear willingness to partner with private capital.”
Raad cautioned that investors needed to carefully assess risks, as the massive scale of ongoing mega-developments could disrupt market balance if demand growth slowed.
She also highlighted potential regulatory shifts in visas, ownership, and taxation that might impact investment returns, along with increasing environmental, social, and governance pressures.
Companies are increasingly demanding low-carbon travel, which would require the timely adoption of Sustainable Aviation Fuel and green-certified infrastructure.
Malik concluded: “Risks are very real, too. The biggest challenge will be timing and coordination. If infrastructure growth — number of flights, hotel rooms, venue capacity — doesn’t align across the board, there’s a risk of overcapacity in one area and bottlenecks in another.”
He added: “Regulatory complexity across countries and cities may slow seamless integration. Delivering not just on time, but to international quality standards, will be crucial to sustaining momentum.”
As MENA’s business travel sector surges, the region’s blend of innovation, sustainability, and economic diversification cements its status as a global leader — with no signs of slowing down.
Big tech bets on Saudi deserts for digital infrastructure
Market revenue is projected to reach $2.07 billion in 2025 and expand to $2.83 billion by 2030
Updated 13 September 2025
Reem Walid
RIYADH: Ƶ’s deserts are fast becoming the new frontier for hyperscale data centers, offering vast land, natural resilience, and strategic positioning that traditional global tech hubs struggle to match.
The Kingdom’s geologically stable terrain faces little risk from earthquakes or flooding, making it an ideal base for mission-critical digital infrastructure. Market revenue is projected to reach $2.07 billion in 2025 and expand to $2.83 billion by 2030, growing annually at 6.45 percent, according to Statista.
Turki Badhris, president of Microsoft Arabia, said the desert landscape provides a rare opportunity to build at scale without the limitations of legacy infrastructure.
“Unlike traditional global tech hubs, the Kingdom’s open terrain allows for purpose-built facilities with fully independent power, cooling, and networking systems. This kind of scale and flexibility is challenging to achieve in crowded global tech hubs,” Badhris said.
Fady Chalhoub, partner at PwC Middle East, noted that hubs such as Singapore and Zurich face constraints from land scarcity, high real estate costs, and strict regulations. By contrast, Ƶ combines affordable land with state-backed investment in subsea and terrestrial fiber routes linking Europe, Asia, and Africa.
“This combination of low-risk geography, strategic location, and government-backed infrastructure development presents a compelling value proposition for hyperscale providers seeking to expand beyond traditional hubs,” he said.
Houssem Jemili, consultant at Bain & Co. (Supplied)
Houssem Jemili, consultant at Bain & Co., added that abundant land, ultra-low-cost solar power, and a dry climate suitable for passive cooling strengthen the Kingdom’s appeal. Government support, he said, “provides financial incentives, infrastructure, and regulatory ease,” while proximity to subsea cables enhances global connectivity.
Energy and innovation advantage
The Kingdom is also leveraging renewables to power its data economy. Chalhoub emphasized the role of solar and green hydrogen in cutting emissions and lowering operating costs. He said despite extreme heat, the region’s low humidity makes advanced cooling techniques viable.
“Solutions such as liquid and immersion cooling, including direct-to-chip technologies, are increasingly viable in this environment, supported by the availability of land, progressive regulation, and an innovation-friendly policy landscape,” he said.
He added: “Ƶ is prioritizing the development of dedicated digital zones and infrastructure corridors,” enabling campuses tailored for AI, cloud, and quantum technologies.
Jemili pointed to the Kingdom’s intense solar irradiance as a source of ultra-cheap renewable power. The dry climate, he said, is driving the adoption of water-saving cooling systems, while land availability supports hyperscale campuses at lower real estate costs.
He noted that megaprojects such as Neom’s Public Investment Fund–backed AI data center campus show how Ƶ is integrating digital infrastructure into broader smart city plans. With new subsea cables strengthening its global links, the Kingdom is emerging as a “tri-continental data hub,” Jemili said.
Regional competition
Ƶ is not alone in this race. The UAE has poured investment into AI-focused data centers, while Qatar has launched national cloud initiatives. But Ƶ’s scale, low energy costs, and government funding set it apart.
According to PwC, regional data capacity is set to triple — from 1 GW in 2025 to 3.3 GW within five years — fueled by surging demand for cloud computing and AI. GCC states, led by Ƶ, are driving this transformation through initiatives like the PIF-backed Transcendence AI Initiative and Amazon Web Services’ $5.3 billion investment.
Cost dynamics add to the edge. Industrial land in Ƶ ranges between $10 and $50 per sq. meter, compared with $150 to $600 in US hubs such as Northern Virginia. Power tariffs are also lower — $0.05 to $0.06 per kWh in Ƶ and the UAE versus $0.09 to $0.15 in the US.
Meanwhile, submarine cable projects including 2Africa, SMW6, and Gulf Gateway (GGC1) are reinforcing Ƶ’s connectivity with Europe, Asia, and Africa, underpinning competitive pricing.
Vision 2030 push
Hyperscale data centers are central to Ƶ’s Vision 2030, drawing global players such as Oracle, Google, Microsoft, and Amazon while boosting local capacity and economic diversification.
Badhris said Microsoft’s Azure cloud region was “equally about supporting the Kingdom’s broader digital ambitions under Vision 2030.
“By enabling digital transformation, creating high-value jobs, and driving innovation across industries, we are contributing to the Kingdom’s economic diversification goals,” he said. The initiative aims to generate up to $24 billion in value over four years and train more than 100,000 Saudis in cloud and AI skills by 2025.
Chalhoub noted that hyperscale infrastructure stimulates demand for AI, cloud, and cybersecurity expertise, strengthens data sovereignty, and supports startups.
“Ultimately, hyperscale datacenters are more than technical infrastructure,” he said. “They are foundational enablers of Ƶ’s aspirations for a knowledge-based economy, sustainable innovation, and industrial self-sufficiency.”
Jemili pointed to global momentum, citing Oracle’s $14 billion pledge and Equinix’s $1 billion Jeddah investment.
“Also, the Saudi Digital economy is expected to benefit: the data center market will triple to $3.9 billion by 2030, reflecting rising cloud and AI demand. Lastly, the data centers will support PIF’s digital initiatives such as Neom’s $5 billion net-zero AI hub,” he said.
Startup Wrap — Ƶ leads MENA startup funding in August
Kingdom led the region for the second consecutive month, attracting $166 million across 19 deals
Updated 13 September 2025
Nour El-Shaeri
RIYADH: Startup funding across the Middle East and North Africa posted a 74 percent year-on-year increase in August, with $337.5 million secured across 47 deals.
The figure reflects continued investor interest amid market recalibration, although the monthly total is a 57 percent drop from July’s record $783 million.
Ƶ led the region for the second consecutive month, attracting $166 million across 19 deals, while the UAE followed with $154 million raised by 11 startups.
The funding concentration in Ƶ and the UAE highlights their dominance in regional venture activity.
Egypt, typically a top-three performer, saw continued weakness with just $14.7 million raised across eight startups.
Iraq, which ranked third in July, fell to fifth with a single $1.5 million transaction, while Morocco retained its top-four position.
Property tech emerged as the leading sector, raising $96 million across four deals, reflecting sustained investor appetite for real estate innovation.
Fintech followed with $68.3 million raised across five transactions, staging a recovery after a weaker July.
Construction technology took third, driven by MYCRANE’s $50 million round, while the gaming sector rose to fifth, buoyed by $12.6 million in Saudi-led investments— a sign of the Kingdom’s ambitions in digital content and gaming.
Later-stage funding dominated the month, with three series B deals raising $112 million and three series A deals securing $82 million.
UAE-based fintech Metric has secured funding from A-typical Ventures. (Supplied)
Debt financing accounted for $60 million, or 18 percent of total funding, while early-stage activity saw a notable decline, with 31 startups raising just $22 million.
The figures indicate a more selective investment environment, with capital favoring scale-ups over seed-stage ventures.
B2B startups attracted the majority of funding, raising $180 million across 32 deals.
B2C ventures followed with $116.9 million from nine transactions, while hybrid models accounted for the remainder.
The shift suggests investors are prioritising startups with clearer monetization models and enterprise focus.
Funding remained largely male-dominated, with startups led by men securing $263.5 million across 41 deals.
However, female-led ventures made gains, raising $72.3 million across two Saudi-based startups— Gathern and Phys— while mixed-gender teams attracted $1.6 million.
Orbii raises $3.6m seed round
Saudi-based credit infrastructure platform Orbii has secured $3.6 million in seed funding to expand its operations across the MENA region.
The round was led by Prosus Ventures, with additional participation from VentureSouq, DASH Ventures, Taz Investments, and Sanabil 500.
Founded in 2024, Orbii is building an artificial intelligence-powered platform that enables banks, fintechs, and B2B marketplaces to deliver SME lending solutions faster and more accurately.
The technology integrates directly with banking systems, fintech platforms, point-of-sale networks, and ERP software to support real-time credit decisions.
With the funding, Orbii plans to grow its footprint in Ƶ and the UAE, enhance its engineering and data science teams, and advance its mission to unlock $1 billion in SME financing by 2026.
Fitting secures $500k pre-seed funding
Saudi-based construction-tech startup Fitting has raised $500,000 in a pre-seed funding round led by a strategic angel investor.
The funding will support technology development, team expansion, and strategic partnerships in the Kingdom’s rapidly transforming construction sector.
Founded in 2024, Fitting operates a digital marketplace connecting wholesale building materials suppliers with retailers and real estate developers.
The platform addresses inefficiencies in procurement by improving transparency and reducing waste.
The company is positioning itself to play a central role in Ƶ’s construction ecosystem amid Vision 2030 and mega-projects such as Neom and Qiddiya.
MoneyHash and noon payments partner
Middle East and Africa-based payment orchestration platform MoneyHash has entered into a strategic partnership with noon payments to enhance access to localized payment methods across the Gulf region.
Through a single API, businesses can now activate key regional payment options, including Mada, KNET, and Benefit, as well as Meeza and Omannet.
The collaboration brings together MoneyHash’s orchestration technology with noon payments’ extensive regional coverage to simplify operations and improve customer experiences.
The joint solution targets digital-first businesses and enterprises seeking faster deployment, streamlined backend integration, and improved approval rates across fragmented payment systems.
21Doctors closes pre-seed round to build Arabic-first AI medical infrastructure
Saudi-based health tech startup 21Doctors has completed its pre-seed funding round, backed by a group of strategic angel investors.
The company has also established its headquarters in Ƶ, which will serve as the central hub for operations and product development.
Founded by Osama Al-Mabroum and Rania Abu Taleb, 21Doctors is focused on creating AI-driven healthcare tools tailored for Arabic-speaking medical providers.
The platform is designed to support digital transformation in the sector, aligned with the Kingdom’s Vision 2030.
The company aims to expand its technology and partnerships across the Gulf following early traction in Ƶ and Jordan.
DawaDose secures pre-seed funding to build integrated digital pharmaceutical platform
Saudi-headquartered healthtech startup DawaDose has raised an undisclosed amount in a pre-seed funding round supported by angel investors.
The company will use the capital to establish its headquarters in the Kingdom and expand across regional markets.
Founded by Rushdi Abdalghani and Osama Al-Mabroum, DawaDose is building a fully integrated B2C and B2B pharmaceutical ecosystem, connecting pharmacies, wholesalers, and consumers through AI-powered digital tools.
The company’s roadmap includes strengthening partnerships and preparing for regional expansion, with a strong alignment to Vision 2030.
TERN Group raises $24m
TERN Group, a UK- and UAE-based AI-powered healthcare talent mobility platform, has raised $24 million in a series A round led by Notion Capital.
The latest round brings the company’s total funding to $33 million, with participation from EQ2 Ventures, RTP Global, LocalGlobe, Leo Capital, Presight Capital, and Tom Stafford of DST Global.
Founded in 2023 by Avinav Nigam and Krishna Ramkumar, TERN focuses on training, certifying, and deploying healthcare professionals from 13 countries into high-demand markets.
The platform claims to reduce recruitment timelines from up to 12 months to under 10 weeks.
The new capital will fund expansion of its AI, training, and compliance infrastructure and support growth across the GCC, Europe, and the UK.
VentureSouq closes fintech Fund II with support from top regional LPs
UAE-based venture capital firm VentureSouq has closed its second fintech-focused fund, FinTech Fund II, with participation from prominent limited partners including Jada Fund of Funds, Saudi Venture Capital Co., Saudi Awwal Bank, Mubadala, Takamol, Krafton, and Jordan’s ISSF.
The fund will focus on early-stage fintech and Software-as-a-Service startups across MENA, targeting verticals such as payments infrastructure, digital banking, alternative credit, insurance tech, and property tech.
With over $250 million in assets under management and a track record that includes investments in Tabby, Huspy, Yassir, and Mozn, VentureSouq continues to expand its presence in the regional innovation ecosystem.
AI fintech Metric secures funding to scale across the GCC
UAE-based fintech Metric has secured funding from A-typical Ventures, with participation from 500 Global, Hub71, and i2i Ventures, as well as Plus VC, Epic Angels, Oqal Angels, Accelerate Prosperity, and regional angel investors.
The capital will support product development and regional expansion.
Founded in 2022, Metric provides founders and small business owners with tools to simplify complex financial data.
The platform includes dashboards, benchmarking tools, forecasting capabilities, and a conversational AI adviser designed to help users make data-driven decisions.
Property Finder raises $525m via minority stake sale
UAE-based real estate platform Property Finder has raised $525 million through a minority stake sale to Permira and Blackstone. General Atlantic partially exited during the transaction but remains a significant shareholder.
The sale marks Permira’s first investment in the Middle East.
Property Finder aims to use the new capital and partnerships with Permira, Blackstone, and General Atlantic to accelerate growth in Ƶ and Turkiye.
The transaction follows a $90 million debt financing round in 2024 led by Francisco Partners.
PRYPCO closes pre-series A round led by General Catalyst
UAE-based proptech platform PRYPCO has closed a pre-series A round of undisclosed value, led by General Catalyst.
The company claims to have enabled nearly 10 billion dirhams ($2.72 billion) in mortgage transactions and supported over 3,000 Golden Visa applications since its founding in 2022.
Established by Amira Sajwani, PRYPCO operates PRYPCO Blocks, which offers fractional property ownership, and PRYPCO Mint, a tokenized real estate investment platform.
The fresh funding will support expansion of the platform’s offerings, regulatory engagement, and continued growth across the MENA region.
Oman to receive electricity connection boost after $500m GCC grid deal
Updated 12 September 2025
Arab News
RIYADH: A $500 million financing deal has been struck to help fund a direct electricity interconnection project between the Gulf Cooperation Council and Oman.
The GCC Interconnection Authority and Sohar International Bank have signed an agreement for the project, which includes the construction of a double-circuit 400 kilovolt power line linking the UAE’s Al-Silaa station and a station that the Authority will build in Oman.
It also includes the construction of two 400 kV transmission stations in Ibri in Oman and Al-Baynunah in the UAE, equipped with advanced control, protection, and communication systems to ensure efficiency, reliability, and safety.
The agreement aims to enhance energy security at the regional level and increase opportunities for energy trade and exchange between GCC countries, in a strategic step that reflects the depth of integration, according to the Saudi Press Agency.
The agreement was signed in Muscat, in the presence of Mohsen bin Hamad Al-Hadhrami, undersecretary in Oman’s Ministry of Energy and Minerals and chairman of the GCC Interconnection Authority, as well as heads of energy and electricity companies in the country, and the executive management of Sohar International Bank.
According to SPA, Al-Hadhrami “explained that this project represents a qualitative leap in the integration of electricity networks across the GCC countries and enhances the Sultanate of Oman's position as a pivotal hub for energy exchange.”
He added that the direct connection will contribute to raising the efficiency of the networks and achieving tangible economic and environmental savings, in line with the objectives of Oman Vision 2040 and the shared visions of the GCC countries in the field of sustainable energy.
The agreement was signed on behalf of the GCC Interconnection Authority by its CEO Ahmed bin Ali Al-Ibrahim, and also by Abdul Wahid bin Mohammed Al-Murshidi, CEO of Sohar International Bank.
The project will be equipped with a dynamic compensator station to enhance network stability and increase transmission capacity, providing a total capacity of up to 1.6 gigawatts.
The GCC Interconnection Authority CEO stated that the signing of the agreement reflects the institutional confidence in the project and its regional importance, according to SPA.
Al-Ibrahim “affirmed that implementation will proceed according to the approved timetable, which will enhance the reliability of supplies and enable the integration of renewable energy on a wider scale,” said the report.
Sohar International’s CEO stated that his company's financing of this project stems from its ongoing commitment to supporting infrastructure projects that contribute to achieving Oman Vision 2040 and driving the Gulf economic integration.
Al-Murshidi noted that the project represents an important pillar of the Authority's strategy to connect the electricity grids of the GCC countries and enable them to meet challenges, including absorbing renewable energy sources and reducing carbon emissions, SPA stated.
Building tomorrow’s Saudi entrepreneurs with digital and soft skills
Updated 12 September 2025
Nirmal Narayanan
RIYADH: Young talents in Ƶ require a combination of digital and technical skills, including artificial intelligence and data analytics, to thrive in the Kingdom’s dynamic business environment, experts told Arab News.
Strengthening entrepreneurship and bolstering the small and medium enterprises landscape is a crucial goal outlined in Ƶ’s Vision 2030 agenda, as the Kingdom is steadily diversifying its economy by reducing its reliance on oil-based revenues.
Speaking to Arab News, Amr Kazimi, manager, public sector practice at Arthur D. Little Middle East, said that equipping young Saudis with the ability to innovate and build businesses could help the Kingdom reduce its dependence on oil and accelerate diversification into priority non-energy sectors such as technology, tourism, and renewable energy.
“To thrive in Ƶ’s dynamic business environment and to catch up with global trends, young entrepreneurs need a mix of digital and technical skill; these include AI, data analytics, e-commerce,” said Kazimi.
He added: “Strong financial literacy and business management skills are also essential to navigate funding opportunities and business operations. Similarly, innovation, problem-solving, leadership, adaptability, and cross-cultural communication are vital to support the Kingdom’s push toward a thriving economy.”
Amr Kazimi, manager, public sector practice at Arthur D. Little Middle East. Supplied
In August, a report released by PwC Middle East echoed similar views and said that developing entrepreneurial capabilities in MENA must go far beyond traditional business training, with a focus on adaptability, creativity, problem-solving and fluency in emerging technologies.
Philipp Lemmerz, Middle East leader for economic competitiveness at PwC Middle East, told Arab News that technical fluency in finance, digital tools, and emerging technologies is now a basic requirement for young entrepreneurs in Ƶ to lead with confidence in the fast-changing business landscape.
“Our survey found that 81 percent of CEOs in the Kingdom have adopted generative AI in the past year, which highlights the pace of change. For youth, this means entrepreneurial skills must go hand in hand with an openness to innovation and a readiness to compete on a global scale,” said Lemmerz.
The vitality of soft skills
Shihab Elborai, partner, Strategy& Middle East, part of the PwC network, said that interpersonal abilities, such as adaptability, active listening, and risk awareness, play an outsized role in career progression for young Saudi entrepreneurs.
Elborai added that these soft skills are as important as technical expertise, and in many cases, they will help propel young people into leadership roles faster.
“On the practical side, entrepreneurs need sharp business acumen to make sound, timely decisions. But just as important are the softer skills — being adaptable, willing to take calculated risks, and able to challenge ideas without shutting down collaboration,” said Elborai.
Vanina Torlo, head of Oliver Wyman’s India, Middle East, and Africa Education Practice, said that young Saudis need a blend of innovation and creativity, business sense and strong digital skills to tone their entrepreneurship skills.
She added that the ability to think outside the box is crucial for innovating in the current economic landscape and expanding beyond the Kingdom’s traditional reliance on oil.
“In such a dynamic landscape, young Saudi entrepreneurs will need to be prepared to face setbacks and challenges; a resilient mindset and the capacity to pivot strategies when necessary are critical for long-term success,” said Torlo.
The long-lasting economic impact
Nirmal Chhabria, professor of the Practice and Director of the EMBA-Dubai Program, Georgetown University’s McDonough School of Business, told Arab News that developing entrepreneurial skills among Saudi youth creates economic impact through various interconnected mechanisms that go far beyond traditional job creation.
“Developing entrepreneurial skills transforms the employment equation itself. Rather than producing graduates who compete for existing positions, entrepreneurial education creates individuals who generate new positions. When young Saudis learn to identify market gaps and build solutions, they become job creators rather than job seekers,” said Chhabria.
He further said that strengthening these skills will organically accelerate technology adoption and innovation diffusion, allowing young entrepreneurs to gravitate toward emerging technologies and digital solutions.
“As they build businesses around AI, fintech, e-commerce, and other high-growth sectors, they become vectors for modernizing traditional industries. This organic technology integration often proves more effective than top-down digitization initiatives because it’s driven by market demand rather than bureaucratic mandate,” said Chhabria.
Lemmerz said that entrepreneurial capability is the cornerstone of Vision 2030, as it connects diversification with job creation by empowering young Saudis to establish ventures that broaden the economic base and generate sustainable employment.
The PwC official added that developing entrepreneurial skills among youth in the Kingdom will help them seize growing opportunities and build a private sector that is resilient and competitive, something which is central to the future of Ƶ.
“By instilling entrepreneurial confidence and capability across our youth, we ensure that Vision 2030 is not only achieved but anchored in a thriving, innovative private sector. In doing so, we create an economy that is more diverse, more competitive, and more inclusive for generations to come,” said Lemmerz.
The crucial support system factor
According to Lemmerz, a thriving entrepreneurial ecosystem not only requires capital, but also needs access to mentorship, digital infrastructure, and a regulatory environment that enables innovation and rewards risk-taking channels.
“Our CEO survey highlights how Saudi leaders are already investing in areas such as AI and sustainability, demonstrating confidence in the Kingdom’s future. To match this, youth must be supported with the right systems to turn ideas into scalable ventures,” said Lemmerz.
He added that young business founders need structured incubation, simplified regulatory sandboxes, and corporate partnerships that open procurement.
“When ambition is backed by the right infrastructure, the next generation of Saudi entrepreneurs can emerge as national champions. This ecosystem is what will transform today’s start-ups into tomorrow’s pillars of the Saudi economy,” said the PwC official.
Kazimi said that a thriving entrepreneurial ecosystem in Ƶ can be built on streamlined regulations, robust financing channels, access to mentorship and networking, infrastructure, access to talent, and adequate enablers.
The Arthur D. Little official further noted that more efficient regulations would include building on the existing momentum to simplify business set-up, reduce bureaucracy and operational impediments, and strengthen intellectual property.
“Enhancing access to finance not only involves simplifying requirements for funding but also innovating in funding products available to small businesses. In addition, achieving access to mentorship, networks, and technical support can be achieved through specialized and sector-focused incubators and innovation hubs,” said Kazimi.
He added: “Innovation hubs and incubators are also a great way to address infrastructure needs, through co-working spaces and other shared services. Finally, to address the issue of lack of specialized human capital, Ƶ could continue to invest in initiatives that would make it easier to attract foreign talent as well as invest in initiatives that would help retain them.”
Torlo said that opportunities for entrepreneurship in Ƶ are unprecedented, driven by substantial government support for SMEs and startups.
The Oliver Wyman official added that simplifying the entrepreneurial ecosystem and enhancing training support for entrepreneurs can significantly boost confidence in new ventures, attracting both local and foreign investment.
“Investing in entrepreneurial skills is crucial to overcoming current barriers, equipping young entrepreneurs with the knowledge and tools necessary to navigate through the rapidly evolving landscape,” added Torlo.
Measuring the success
Lemmerz said that the success of entrepreneurial initiatives should be measured by outcomes, not only outputs, which includes the number of youth-founded businesses, their survival and growth rates, and the jobs they generate.
“Success for youth entrepreneurship will be reflected in similar patterns: ventures that attract investor confidence, adopt new technologies, and contribute meaningfully to sectors central to diversification. When we see this kind of progress, we know that entrepreneurial initiatives are building not just businesses, but the future of the Kingdom’s economy,” said Lemmerz.
Kazimi said that success of youth entrepreneurship in Ƶ can be measured through various indicators such as SME contribution to the Kingdom’s gross domestic product, which is a core Vision 2030 goal.
The Arthur D. Little official added that the growth can be also accessed by macro-economic indicators such as employment generation and reductions in youth unemployment, which directly reflects the impact of entrepreneurship on the labor market.
“Additional indicators include levels of venture capital attracted, patent registrations, and participation in accelerator or incubator programs such as those under Monsha’at and Misk,” said Kazimi.
