��������

RIYADH: Initial public offerings across the Middle East and North Africa raised $700 million in the third quarter of 2025, according to an EY MENA IPO Eye report. 

A total of 11 IPOs were recorded during the period, marking a 120 percent year-on-year increase in the number of listings, driven by mid-market activity. 

The strong performance extended to regional stock exchanges, with the MSCI Emerging Markets Index rising 25 percent, followed by the EGX 30 Index, which gained 23.3 percent, and the Boursa Kuwait Premier Market Index, which climbed 19.6 percent. 

The surge in IPO activity across MENA reflects broader economic diversification efforts and deepening capital markets. In ��������, real GDP grew 5 percent in the third quarter from a year earlier, driven by strong gains in both oil and non-oil sectors, official data showed. 

In Egypt, the economy expanded 4.77 percent in the third quarter of fiscal year 2024/25, supported by an 18.8 percent year-on-year increase in non-oil manufacturing.

According to Brad Watson, EY-Parthenon MENA leader, the recent quarter “reflects the increasing depth and maturity of MENA capital markets, supported by a steady pace of listings across multiple sectors and geographies.” 

He added that companies are “becoming increasingly strategic with market timing — carefully assessing investor sentiment and macroeconomic conditions before going public.” 

�������� accounted for the majority of IPO activity, completing eight listings that raised a combined $637 million.

Dar Al Majed Real Estate Co.’s $336 million listing on the Tadawul Main Market led the region, followed by Marketing Home Group for Trading Co. with $109 million and Sport Clubs Co. with $69 million.

An additional $124.1 million was raised through IPOs on the Nomu parallel market, spanning sectors such as retail, healthcare, and industrial services. Real estate accounted for 55 percent of proceeds on the main exchange.  

Egypt recorded IPOs from Bonyan For Development & Trade SAE and National Printing Co., while Morocco saw the listing of Vicenne S.A., signaling growing regional diversification. 

Gregory Hughes, EY-Parthenon MENA IPO leader, noted that “with lower oil prices, we continue to see economic diversification from non-oil revenues, and the sector focus in �������� has shifted from healthcare and mobility to real estate, hospitality, construction, and retail.”  

Looking ahead, the pipeline for the fourth quarter of 2025 and beyond remains robust, with 19 entities across various sectors preparing to list.

�������� leads with 13 planned listings, including Almasar Alshamil Education Co. and Al Romansiah Co., both of which have secured Capital Market Authority approval. In the UAE, ALEC Holdings PJSC debuted on the Dubai Financial Market in October. 

Outside the Gulf Cooperation Council, Algeria’s Diar Dzair and Morocco’s Gharb Papier Et Carton SA are awaiting regulatory approvals for planned IPOs. 

The outlook is supported by positive policy momentum, diversified investor interest, and increasing integration of environmental, social, and governance principles. 

Meanwhile, regulatory environments across the region continue to evolve.

In the UAE, updated governance reforms now permit the combination of board chair and CEO roles under specific conditions, while in ��������, the Capital Market Authority has launched consultations on changes to market-making rules and foreign ownership limits aimed at enhancing liquidity and accessibility. 

RIYADH: As global powers accelerate artificial intelligence investments, �������� is confronting a defining moment in realizing its digital transformation ambitions.

Through Vision 2030, the Kingdom has made foundational investments in sovereign cloud infrastructure, high-performance computing, and international partnerships, positioning itself as a regional AI frontrunner.

However, industry experts caution that translating these ambitions into nationwide impact requires addressing three core challenges: modernizing legacy hardware systems, creating unified data architectures, and cultivating specialized compute talent.

The central question remains: Does �������� possess the infrastructure needed to deliver AI at visionary scale?

Fadi Kanafani, general manager for SoftServe in the Middle East, said the Kingdom’s progress is already tangible. “Saudi is beyond the announcement stage; now we have action on the ground,” he told Arab News.

Kanafani cited Humain’s AI-driven public service automation and AdopTech’s industrial sandboxes for manufacturing innovation as examples of execution beyond strategy. He also noted Aramco Digital’s alliances with hardware pioneers such as Groq — known for ultra-low latency inference engines — and Cerebras, a leader in wafer-scale computing, as evidence of cutting-edge capacity being embedded directly into the national ecosystem.

Global cloud providers are amplifying this momentum through substantial infrastructure commitments. Oracle’s second Riyadh region enhances sovereign data capabilities for government entities, while Amazon Web Services’ upcoming 2026 regional hub marks one of the Middle East’s largest cloud investments, Kanafani said.

At the academic front, Google Cloud and Microsoft Azure have launched AI innovation labs at King Abdullah University of Science and Technology, while Salesforce’s decision to base its regional headquarters in Riyadh signals growing international confidence in the Kingdom’s digital roadmap.

Suhail Hasanain, NetApp’s senior director for the Middle East and Africa, echoed that alignment.

“�������� has made remarkable progress in establishing foundations for AI-driven transformation,” he said. “Vision 2030’s prioritization of data sovereignty and advanced compute resources embeds artificial intelligence at the heart of national development — from Neom’s cognitive city ambitions to the National Data Bank’s unified information architecture.”

Legacy systems and talent gaps

Despite robust infrastructure growth, large-scale enterprise adoption still faces operational barriers. Outdated financial systems, fragmented electronic health records, and siloed industrial datasets continue to constrain AI’s full potential.

Kanafani pointed to these friction points: “Most organizations remain anchored to legacy systems fundamentally incompatible with AI’s data requirements. Critical information exists in disconnected silos — patient records isolated from diagnostic AI tools, equipment maintenance logs separated from supply chain optimization algorithms.”

Regulatory complexity compounds the challenge. “Governance frameworks vary significantly across healthcare, financial services, and critical infrastructure sectors, creating compliance uncertainty during scaling,” Kanafani added.

Hasanain stressed the human capital dimension. “Beyond physical infrastructure, we confront a severe shortage of specialized talent — data engineers capable of curating trusted datasets, machine learning operations specialists to productionize models, and AI governance experts to ensure ethical deployment.”

He outlined three pillars for closing these gaps: establishing benchmark datasets, building hybrid systems that balance performance with sovereignty, and developing comprehensive workforce pipelines to operationalize AI across sectors.

From pilots to real-world impact

Across energy, healthcare, and logistics, real-world applications are already demonstrating AI’s potential when aligned with national priorities.

In energy, Aramco uses predictive maintenance algorithms to anticipate equipment failures before they disrupt operations. In healthcare, institutions like King Faisal Specialist Hospital leverage computer vision tools for faster, more accurate medical imaging analysis. Meanwhile, Neom’s Oxagon industrial zone applies digital twin technology to simulate logistics before implementation.

NetApp underpins such innovations through adaptable infrastructure solutions. “We empower organizations to orchestrate AI workloads seamlessly across sovereign cloud environments like STC’s and global hyperscalers like Microsoft Azure,” Hasanain explained.

He added: “For a major Riyadh-based financial institution, we integrated transaction data across 200 branches into a unified real-time fraud detection platform — significantly enhancing security while reducing operational costs.”

SoftServe, meanwhile, applies a co-creation model. “We partner deeply with Saudi organizations to build purpose-driven solutions,” Kanafani said.

“For a Tabuk agricultural enterprise, we developed a custom AI model that optimizes irrigation by synthesizing satellite imagery, soil moisture sensors, and weather pattern analysis – delivering measurable water conservation outcomes.”

Kanafani emphasized that organizational culture must evolve alongside technology. Their approach embeds change management from the outset, ensuring readiness for transformation.

Balancing sovereignty and collaboration

The interplay between national priorities and international innovation continues to define ��������’s AI journey.
“Data sovereignty remains non-negotiable for sensitive applications in national security, central banking, and citizen services,” Hasanain said. “Yet strategic collaborations with global technology leaders accelerate capability development – such as deploying NVIDIA’s advanced DGX systems while simultaneously training Saudi engineers to manage them locally.”

Kanafani pointed to hybrid models gaining traction: “Leading Saudi manufacturers increasingly adopt blended architectures — maintaining proprietary process data on localized secure servers while leveraging global cloud scalability for supply chain optimization and market intelligence applications. This harmonizes control with flexibility.”

As �������� develops national AI ethics guidelines, Kanafani underscored proactive design: “Responsible innovation requires embedding bias detection and algorithmic transparency mechanisms directly into AI systems during development — not attempting remediation after deployment reveals ethical shortcomings.”

Building the AI workforce

The Kingdom’s Future Skills initiative aims to train 20,000 AI specialists by 2030 through academic partnerships and hands-on industry experience.

Hasanain noted the importance of integrating learning with real-world exposure. “Oracle’s developer academies provide vital theoretical foundations, but sustainable capability requires integrating graduates into real-world industry projects where they confront practical scaling challenges.”

Still, both experts warn that success will hinge on disciplined execution. “Underestimating cybersecurity requirements or data governance complexity undermines even the most sophisticated AI initiatives,” Kanafani cautioned.

As the global race for AI infrastructure intensifies, ��������’s investments have positioned it to translate ambition into regional leadership. Yet, as Hasanain noted, sustaining momentum will require operational focus.
“Our trajectory is clear, but achieving scalable impact demands relentless focus on data accessibility and talent density — transforming pilot potential into nationwide transformation.”

Kanafani concluded with a vision of distinction: "The Kingdom’s unique opportunity lies in synthesizing global technological excellence, local problem-solving ingenuity, and deeply rooted ethical traditions. This fusion could position �������� as the world’s first values-led AI superpower — where technological leadership serves societal advancement.”