Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn

Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn
Pakistan Prime Minister Shehbaz Sharif with Investment Minister Khalid Bin Abdul Aziz Al-Falih. SPA
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Updated 11 October 2024

Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn

Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn
  • A large Saudi delegation of companies specializing in energy, mining and industry is currently in Pakistan
  • Delegation says economic stability, improved regulations making Pakistan attractive investment destination

ISLAMABAD: Saudi businessmen have expressed hope for successful collaborations in Pakistan, saying the country’s economic stability and improved regulatory framework had made it an attractive investment destination, following the signing of over two dozen deals between companies from both nations.

The Kingdom’s Investment Minister Khalid bin Abdulaziz Al-Falih visited Pakistan on a three-day visit with a delegation of over 130 members, including representatives from Saudi companies specializing in energy, mining, and minerals, as well as agriculture, business, tourism, industry and manpower.

The delegation on Thursday signed 27 agreements and memorandums of understanding worth more than $2 billion with several Pakistani companies.

“We saw much change in (Pakistan’s business) regulations which have become much softer,” Sultan Al-Mansour, chairman of All Care Medical Group, told Arab News, pointing out that Pakistan was gradually moving toward economic stability. “All that positive news is making Pakistan a good spot for investment.”

In June 2023, Pakistan constituted the Special Investment Facilitation Council, a hybrid civil-military forum, to facilitate foreign businesses, particularly from Gulf countries.

The Saudi investor hoped for successful collaborations, saying his company had signed two deals with Pakistani businesses developing surgical instruments and operating in the pharmaceutical industry.

“Our (Pakistani) partners will be launching a factory in in the foreseeable future,” he informed, adding the South Asian state was rich in human resources and knowledge, and constituted a big market.

Al-Mansour said he had collaborated with Hilbro, a Pakistani company that will supply surgical goods to his organization in the kingdom.

Hilbro’s sales and marketing director, Muhammad Bilal Tariq, said his company would initially supply semi-developed products before setting up a manufacturing unit of surgical goods in .

“We are planning to build the factory in Riyadh,” he told Arab News.




Pakistan Prime Minister Shehbaz Sharif meets Saudi delegation led by Investment Minister Khalid Bin Abdul Aziz Al-Falih in Islamabad on October 10, 2024. (PMO)

Mohammad Al-Madani, CEO of Classera, one of the region’s largest e-learning ed-tech companies operating in over 40 countries, said his organization had supported numerous ministries of education, training institutions and governments globally to transform education and training.

“We have started a big project called eTaleem which aims to transform education using technology across this great nation (of Pakistan),” he said.

He informed that the first phase of operations had already started by partnering with Pakistan Telecommunication Co. Ltd., adding it would use technology to transform education more rapidly and benefit the country’s youth.

“We are talking about 60 million students of Pakistan,” he said.

Al-Madani noted that human capital was a huge asset, pointing out his collaboration in Pakistan would help advance the country.

Mohammad Al-Hijji, chairman of the Saudi investment company Engineering Dimension Holding, said it was a good time to join hands with Pakistani businesses due to the government’s investment-friendly policies.

“It is the right time and we are talking about the investment in our partnership with our brethren at Pakistani renewable energy company Welt Konnect, to invest in a 500-megawatt hybrid power project,” he told Arab News.

His Pakistani partner, Habeel Ahmed Khan, termed the collaboration a “great honor.”

“We signed an MoU with our brothers from ED Holding for the 500-megawatt project that we have been developing in the south of Pakistan, almost 45 minutes east of Karachi in the wind corridor of Gharo,” he said.

Sharing details, he said the project would produce about 168 MW of wind power and 332 MW of solar power.

“It’s going to be one of Pakistan’s first hybrid power projects, which will supply cheap electricity to the national grid,” Khan added.

Ghassan Amodi, CEO of Asyad Holding Group, which is acquiring Shell operations in Pakistan, said the move was part of their strategic plan to expand regionally.

“Our association with Shell is a longstanding relationship, and we look forward to further developing this beyond the borders of and now Pakistan. We are also looking for other opportunities,” he said.

Speaking to Arab News, Pakistan’s Petroleum Minister Musadik Malik said over 130 representatives of around 50 Saudi companies were part of the delegation, adding that many projects and collaborations had been finalized in the energy field during the visit.

“Two Saudi companies have flown into Pakistan, and they will be talking about the upgradation of an old refinery, which is about a billion-and-a-half-dollar project,” he said while informing that Pakistan also expected to finish the study on the greenfield refinery project by December.




Pakistan’s Petroleum Minister Musadik Malik speaks during the inauguration of Pak-Saudi Business Forum 2024 in Islamabad on October 10, 2024. (PID)

“Then the conversation will begin to move forward on the $7-10 billion project,” he continued.

Malik informed that once the Saudi delegation departs, the government would follow up on an almost weekly or fortnightly basis.

“It will be to see where those contracts are, how those relationships are evolving and if there’s any government-related trouble that we need to troubleshoot and remove,” he said.


Building Arabic AI from the ground up

Building Arabic AI from the ground up
Updated 25 September 2025

Building Arabic AI from the ground up

Building Arabic AI from the ground up
  • From language depth to data security, regional AI must reflect local values, priorities

ALKHOBAR: When unveiled Allam, its homegrown Arabic large language model, it sent a clear signal: the Kingdom is no longer content to simply consume global AI technologies. 

It intends to build its own. For many, this was a moment of pride — a proof that the Arab world can produce tools designed to understand its own languages, cultures, and contexts.

But experts caution that Allam is only the first step in a much longer journey. Success will not be determined by the models alone, but by the invisible foundations that support them: data, infrastructure, governance, and trust.

“You can’t capture the intent, emotion, and cultural depth of Arabic through translation,” said David Barber, director of the UCL Centre for Artificial Intelligence and Distinguished Scientist at UiPath. “You need systems that think in Arabic from the ground up.”

David Barber, director, UCL Centre for Artificial Intelligence; distinguished scientist at UiPath. (Supplied)

Barber highlights a stark reality: only about 15 percent of Arabic text online is clean enough for training a large language model, compared with over 50 percent for English — a huge head start for models like GPT or Claude. Complicating matters further are Arabic’s complex grammar, diverse dialects, and the common mixing of English and Arabic in a single sentence.

“When you train on noisy or shallow data, the system learns shortcuts,” Barber explained. “It can mimic fluency, but it misses the depth, the idioms, the cultural nuances, the rhythm of thought that makes Arabic distinct.”

For Barber, this underscores the importance of ’s push for locally sourced, high-quality datasets. Without them, any Arabic LLM risks becoming a shallow copy of English-language AI: competent at generic tasks but unable to capture the soul of the language it claims to represent.

Even the best data is ineffective if it cannot be properly organized, secured, and delivered to the model. Seema Alidily, regional director at Denodo, said Gulf enterprises still face major challenges here.

“Without localized infrastructure, AI systems risk misunderstanding user intent or producing irrelevant outputs,” she said. “Data virtualization is one of the few ways to unify governance and access across cloud and on-site systems without moving sensitive information.”

Seema Alidily, regional director, Denodo. (Supplied)

Practically, this means investing in platforms that can pull data from dozens of scattered sources — from ERP systems to IoT sensors— and present it in a unified view for AI to use. In , where Vision 2030 projects depend on massive, real-time datasets, this approach is critical, especially given strict regulations on handling citizen data.

Alidily warned that merely replicating Western infrastructure may not suffice. “In the Gulf, centralized visibility and compliance must come first,” she noted. “It is not just a technical issue, it is about aligning with the legal, cultural, and regulatory expectations of the region.”

For Bader AlBahaian, country manager for at VAST Data, the stakes go beyond efficiency — they touch on independence and security.

“If we depend exclusively on external platforms, we risk importing their policies and their priorities, often at the expense of regional needs,” he said.

Bader AlBahaian, country manager, , VAST Data. (Supplied)

AlBahaian advocates for “sovereign-by-design” systems: storage and compute architectures that keep sensitive data within national borders, encryption and access controls that satisfy local regulators, and AI models trained under rules set by the Kingdom rather than a foreign vendor.

“It is not just about where the data sits,” he added. “It is about who gets to define how it is used, who takes responsibility when something goes wrong, and who has the power to switch the system off if necessary.”

This question of sovereignty is becoming urgent as AI begins to shape decisions in finance, healthcare, education, and public policy. A misaligned model trained on foreign data could issue recommendations that contradict local priorities — or worse, expose the region to economic or political risks.

But building perfect infrastructure is only half the challenge. Success ultimately depends on how AI is deployed.

“Digital labor will allow businesses to have much deeper relationships with their customers,” said Ibrahim Alseghayr, managing director of Salesforce . “And by taking on so much of the routine work, AI frees humans to focus on collaboration, creativity, and critical thinking.”

Ibrahim Alseghayr, managing director of Salesforce . (Supplied)

Alseghayr points to Agentic AI — systems that can act on a company’s behalf — as already transforming service centers, financial operations, and citizen engagement platforms. In , he sees huge potential for digital labor in scaling mega-projects like Neom, automating logistics networks, and delivering smarter healthcare services.

He cautioned that this transformation must be carefully managed. “We need strong governance, testing environments, and continuous oversight,” he said. “Otherwise, we risk building tools we do not fully understand, and that could erode trust instead of building it.”

Across all four experts, one theme is clear: global rules and imported frameworks will not suffice. The Arab world must craft its own AI governance models, rooted in its cultural and legal realities.

For Barber, Allam is a test case. “This is the Kingdom’s chance to prove that it can build systems that are not only technically powerful but also aligned with its values,” he added.

DID YOU KNOW?

• Arabic’s complex grammar, dialect diversity, and frequent English–Arabic mixing make it one of the hardest languages for AI to master. 

• ’s Allam is the first homegrown Arabic large language model, designed to think in Arabic rather than translate from English. 

• Vision 2030 projects depend on real-time data, but regulations require strict handling of citizen information.

“Agentic AI can create personalized treatment plans, autonomously monitor patients, and detect early signs of health deterioration before a doctor ever enters the room,” he said.Alidily agrees, emphasizing that governance frameworks must reflect the Gulf’s unique data protection requirements, with regulators working closely with technology providers to define shared standards.

AlBahaian is even more direct. “Trust is earned through systems, not slogans. People need to know where their data is, who is using it, and for what purpose. That is the only way to build confidence at scale.”

The message is clear: Arabic AI’s future will not be decided by model size alone. It will depend on investments in infrastructure, sovereignty, and governance.

has taken the first step with Allam. What comes next — the data pipelines, virtualized infrastructure, sovereign controls, and digital labor deployments — will determine whether the Kingdom becomes a true AI creator or remains a buyer of foreign-built intelligence.

 


, China seal $1.74bn investment deals at Beijing forum 

, China seal $1.74bn investment deals at Beijing forum 
Updated 25 September 2025

, China seal $1.74bn investment deals at Beijing forum 

, China seal $1.74bn investment deals at Beijing forum 

JEDDAH: and China signed 42 investment agreements worth over $1.74 billion across advanced industries, smart vehicles, and energy.

The deals, which also covered medical devices, equipment, and mineral resources, were inked at the Saudi-Chinese Business Forum in Beijing, attended by Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef, as part of his official visit.

Organized by the Federation of Saudi Chambers, the forum gathered around 200 companies and public and private sector representatives from both countries, the Saudi Press Agency reported. 

This follows growing bilateral trade between and China, which surpassed SR403 billion ($107.5 billion) in 2024 — more than doubling in less than a decade — driven by shared goals such as Saudi Vision 2030 and China’s Belt and Road Initiative. 

In a post on his X handle, Alkhorayef said: “During my participation in the Saudi-Chinese Business Forum in the capital, Beijing, I affirmed the strength of the partnership between our two friendly nations, and the Kingdom’s keenness to expand this partnership to support our goals in industry and mining, strengthen international supply chains, and enhance our presence as an economic force contributing to the growth of the global economy.” 

He noted remains a key supplier of fuel, petrochemicals, and advanced materials, while China is the largest source of machinery, electronics, transport equipment, and consumer goods, with trade increasingly diversifying into high-value industries. 

The minister highlighted that Chinese investment in grew about 30 percent in 2024, surpassing SR31 billion, with growth in mining, automotive manufacturing, and petrochemicals. More than 750 Chinese companies operate in the Kingdom, including investors in NEOM, Jubail Industrial City, and Jazan City for Primary and Downstream Industries.  

Conversely, Saudi investments in China exceed SR8 billion, alongside memorandums of understanding with Chinese financial institutions valued at $50 billion. 

Alkhorayef emphasized the alignment of Vision 2030 with the Belt and Road Initiative to enhance connectivity, expand trade, and build resilient industrial systems.  

He added that efforts are underway to establish new supply chain corridors linking Asia with the Middle East, Africa, and Europe, reinforcing ’s role as a global industrial and logistics hub. 


freezes rents in Riyadh for 5 years 

 freezes rents in Riyadh for 5 years 
Updated 25 September 2025

freezes rents in Riyadh for 5 years 

 freezes rents in Riyadh for 5 years 
  • Crown Prince Mohammed bin Salman directed that the measures be enforced as part of broader efforts to safeguard tenant and landlord rights
  • Freeze could be extended to other cities and regions

RIYADH: has enacted sweeping new regulations to stabilize rental prices in Riyadh, including a five-year freeze on increases for residential and commercial properties. 

The measures, approved by the Cabinet and enacted by a royal decree, are designed to address surging rents in the capital and restore balance to the property market. 

Effective Sept. 25, landlords will no longer be permitted to increase rental values in existing or new contracts within Riyadh’s urban boundaries for a period of five years, according to a report by the Saudi Press Agency. 

The General Real Estate Authority will also have the authority to extend the freeze to other cities or regions with the approval of the Council of Economic and Development Affairs. 

Crown Prince Mohammed bin Salman directed that the measures be enforced as part of broader efforts to safeguard tenant and landlord rights, strengthen transparency, and ensure fair competition in the rental market, while supporting sustainable urban development in Riyadh, according to SPA.

The news agency’s report stated: “The General Authority for Real Estate has studied the procedures in accordance with the best international practices and experiences to regulate the relationship between the landlord and the tenant.”

Under the new framework, rents for vacant units that were previously leased will be fixed at the value of the last registered contract, while rents for properties that have never been leased will continue to be determined by agreement between landlord and tenant. 

All lease agreements must be registered on the government’s Ejar digital platform, with both landlords and tenants entitled to submit contracts for registration. The other party will have 60 days to object before the contract is considered legally valid. 

The regulations also establish automatic renewal for leases across the Kingdom unless one party gives at least 60 days’ notice before expiration. 

Contracts with less than 90 days remaining at the time of implementation are exempt, as are leases terminated by mutual agreement after the notice period. 

In Riyadh, landlords cannot refuse to renew a contract if the tenant wishes to continue occupancy, except in three cases: non-payment of rent, structural safety issues verified by an official technical report, or the landlord’s personal need for the unit or that of an immediate family member. 

The authority may also define additional exceptions in the future. 

Landlords may challenge fixed rental values in specific circumstances, including when substantial renovations have increased property value, when the last lease contract predates 2024, or in other cases approved by the authority. The body will establish mechanisms to review and decide on such objections. 

Violations of the new system will carry fines of up to 12 months’ rent for the affected unit, alongside requirements to correct the violation and compensate the injured party. 

Penalties will be determined by committees established under Article 20 of the Real Estate Mediation Law. Landlords and tenants found in violation may appeal decisions within 30 days to the competent judicial authority. 

Whistleblowers who are not directly involved in enforcement may also receive up to 20 percent of the collected fine if their information results in a confirmed violation, with distribution rules set by the authority. 

Where the new regulations do not provide explicit guidance, provisions of the Civil Transactions Law will apply. 

The Cabinet also retains the right to amend the rules based on recommendations from the Council of Economic and Development Affairs and future reports from the General Real Estate Authority. 

The authority has been tasked with monitoring compliance, publishing clarifications, and providing public education on the new rules. 

It will also deliver periodic reports on rental prices and market performance.


pitches mining opportunities to French firms

 pitches mining opportunities to French firms
Updated 25 September 2025

pitches mining opportunities to French firms

 pitches mining opportunities to French firms

JEDDAH: French companies were pitched investment opportunites in ’s mining sector as the Kingdom prepares to launch a competitive tender on Sept. 28 for 162 new mining exploration sites. 

Some 15 firms took part in a virtual seminar, where they heard about projects located in the Al-Naqrah and Sukhaybarah Al-Safra belts in the Madinah region, according to a press release from the Ministry of Industry and Mineral Resources. 

The plan is part of a broader effort to open more than 50,000 sq. km of mineralized belts to investors by 2025. 

The initiative reflects ’s drive to accelerate mineral exploration and attract diverse investment, leveraging the Kingdom’s mineral wealth — estimated at SR9.4 trillion ($2.5 trillion) — to boost non‑oil revenue alongside the oil and petrochemical sectors. It also aligns with Vision 2030 goals to develop the mining sector, maximize economic benefits, and establish mining as a third pillar of industry. 

In the press release, the ministry stated: “The seminar highlighted the advanced infrastructure supporting mining projects, including transportation, communications, and logistics networks. This reduces the timeframe for implementing and operating mining projects and enhances the competitiveness and attractiveness of the mining investment environment in the Kingdom. 

The seminar also served as preparation for the Saudi-French Mining Day on Oct. 8 in Riyadh, organized in partnership with the French Embassy, as the Kingdom seeks to establish mining as a third industrial pillar under Vision 2030. 

It will underscore both nations’ commitment to advancing collaboration in critical minerals, technology transfer, and sustainable mining practices. 

The meeting follows Minister of Industry and Mineral Resources Bandar Alkhorayef’s visit to France in early May, where he held discussions with senior officials from several French companies, including the CEO of Orano Mining. 

The Paris visit focused on securing a stable supply of critical minerals, such as lithium and cobalt, essential to ’s green energy initiatives and the growing electric vehicle sector. 

Alkhorayef also met with France’s Interministerial Delegate for Strategic Minerals and Metals Supplies, Benjamin Gallezot, to explore ways to strengthen global supply chain resilience and promote sustainability in the mining sector. 


Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch
Updated 25 September 2025

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

RIYADH: ’s banking sector is leading a shift in Gulf financing, driving a surge in US dollar-denominated subordinated debt to fund rapid credit growth and ambitious national projects, a new analysis showed. 

Fitch Ratings said Saudi banks are at the forefront of this regional trend, which is expected to continue into 2026 amid rising capital needs and tighter regulatory requirements. 

As the Saudi government pushes ahead with multi-trillion-dollar Vision 2030 initiatives, banks are turning to global US dollar markets to raise crucial capital, boosting issuance of complex, high-yield subordinated bonds. 

So far in 2025, Gulf Cooperation Council banks have issued over $55 billion in US dollar debt, already surpassing 2024’s total of $36 billion. “Over half ($29.3 billion) is from Saudi banks, including $11.7 billion in additional Tier 1 (AT1) and Tier 2 capital,” the agency said. 

Subordinated debt now accounts for over 70 percent of Saudi banks’ dollar issuance, up from about 50 percent in 2024, reflecting a move toward riskier instruments that strengthen banks’ capital bases. 

Fitch cited several drivers behind the surge. Saudi banks are experiencing the strongest credit growth in the GCC, projected at 12 percent in 2025. This lending boom, which finances large-scale Vision 2030 projects, is outpacing deposit growth and gradually eroding capital buffers. 

“Strong financing growth is outpacing deposit growth and has eroded capital buffers in recent years. The sector common equity Tier 1 (CET1) ratio decreased by 213bp over 2020-2024,” the report noted. 

Upcoming regulatory changes — including a 1 percent countercyclical buffer from May 2026 and tighter interest-rate risk rules — are expected to add further pressure on capital ratios.

Additionally, financing major Vision 2030 projects carries higher risk weightings under Basel III rules, further straining core capital. 

While AT1 instruments continue to dominate non-core capital markets, Saudi banks are also diversifying. They have issued nearly $6 billion in Tier 2 debt in 2025, helping balance their capital structure and attract a broader base of international investors. 

Fitch expects issuance momentum to continue into 2026, supported by over $10 billion of maturing debt that needs refinancing, ongoing financing demand, and anticipated lower interest rates.

About $1.8 billion of AT1 instruments reaching their first call date next year are also expected to be redeemed under favorable market conditions. 

Fitch Ratings had predicted that GCC banks are set to exceed $60 billion of US dollar debt issuance in 2025, and $40 billion excluding certificates of deposit, surpassing the record levels of 2024. 

In a report released earlier this month, the agency said the surge is driven by heightened maturities, strong credit growth and favorable financing conditions.