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Harnessing the Sun: Ƶ’s solar revolution

Harnessing the Sun: Ƶ’s solar revolution
Ƶ’s National Renewable Energy Program sees the Kingdom aiming for a solar energy capacity of 40 gigawatts by 2030. Above, the solar plant in Uyayna, north of Riyadh on March 29, 2018. (AFP file photo)
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Updated 21 December 2024

Harnessing the Sun: Ƶ’s solar revolution

Harnessing the Sun: Ƶ’s solar revolution

RIYADH: Ƶ is a world leader when it comes to extracting energy sources from the ground, but it is the Kingdom’s drive to harness a power supply in the sky that is attracting attention.

Favorable government policies, a shift to meeting energy demands through renewable power, and a reduced dependence on fossil fuels are all factors pushing forward the Kingdom’s solar industry.

The ambitious target of Ƶ’s National Renewable Energy Program sees the Kingdom aiming for a solar energy capacity of 40 gigawatts by 2030, promising significant opportunities for the market in the years to come.

According to market research firm Mordor Intelligence, the Kingdom’s solar market is projected to achieve a compound annual growth rate of 51 percent between 2024 and 2029 as a host of facilities come online.

However, challenges lie ahead with the rise of alternative clean energy sources like wind and the continued availability of fossil fuels potentially hindering solar energy market growth.

Solar technologies deployed in Ƶ to maximize energy efficiency 

According to Christopher Decker, partner in energy and natural resources at Oliver Wyman, India, Middle East and Africa, Ƶ is at the forefront of innovative solar technologies aimed at maximizing energy efficiency and sustainability in the region.

“One notable advancement is the Dumat Al-Jandal Concentrated Solar Power plant, which harnesses solar energy to heat liquid for thermal energy storage, enabling energy availability even when sunlight is not present,” he said.

“Additionally, the Sakaka Solar Plant employs bifacial solar panels that take advantage of the reflectivity of the surrounding sand, significantly enhancing solar efficiency. To maintain optimal performance, projects like the Noor Energy 1 plant in NEOM have implemented waterless robotic cleaning technologies, which not only ensure high efficiency but also reduce operational costs,” Decker added.

The Oliver Whyman official went on to note that the integration of smart grids and artificial intelligence technologies allows for the optimization of solar energy generation by predicting energy demand and forecasting weather patterns, thereby minimizing waste.

“Lastly, the NEOM Green Hydrogen initiative exemplifies the use of solar power to produce green hydrogen and subsequently green ammonia, showcasing a commitment to sustainable energy solutions. Together, these technologies position Ƶ as a leader in solar innovation, driving the transition toward a more sustainable energy future,” Decker said.

Solar technologies globally have reached a high degree of maturity and the cost reductions are driven by the growing efficiency of solar cells as well as economies of scale.

According to Adnan Merhaba, partner and energy and utilities practice lead at Arthur D. Little Middle East, these incremental innovations have also made their way into Ƶ and some developers have proposed additional developments, such as bifacial solar cells, that can further enhance yields.

“Ƶ, a leader in water desalination technology, is also pioneering solar desalination to enhance sustainability. Furthermore, research institutes in KSA are investing in the next generation of higher efficiency solar cells such as tandem perovskite cells that can achieve a step change for efficiency gains,” Merhaba said.

The King Abdullah University of Science and Technology is a prime example of the growing solar industry in Ƶ.




Stefaan De Wolf, KAUST professor material science and engineering. (Supplied)

According to Stefaan De Wolf, professor of material science and engineering at the Physical Science and Engineering Division in the university, the institution is pioneering research and development in emerging photovoltaic technologies aimed at maximizing energy efficiency and sustainability.

“One of the key innovations we are advancing is the combination of perovskite and silicon PV, which significantly enhances solar power efficiency beyond traditional technologies. This hybrid approach has the potential to achieve ultra-high efficiency solar cells for even harsh environmental conditions of Ƶ – high temperatures and dust,” De Wolf said.

“Additionally, we are exploring the development of bifacial solar panels, which can generate electricity from both sides, further improving energy yield. These innovations are designed to help Ƶ not only maximize its solar energy potential but also contribute to the global advancement of sustainable energy solutions,” the professor added.

From his side, Qiaoqiang Gan, professor of material science and engineering at the same division, shed light on the fact that industry players are actively seeking advanced thermal management technologies to reduce the operational temperatures of PV systems installed in the Kingdom.

“This challenge is pressing for Middle Eastern countries due to the region’s high temperatures. Addressing this issue requires more reliable materials and devices on a microscopic level, as well as advanced thermal management strategies on an operational level,” Gan said.




Qiaoqiang Gan, KAUST professor of material science and engineering. (Supplied)

Shihab El-Borai, partner with Strategy& Middle East, noted that projects like the Sudair Solar PV exemplify Ƶ’s commitment to cutting-edge technologies, incorporating bifacial panels and sun-tracking systems to maximize efficiency.

“Ƶ is leveraging world-class innovations in solar energy to not only produce electricity but to create a sustainable model for the entire region,” El-Borai said.

“Companies like Mirai Solar are also making strides with multifunctional solar panels that harness diffused sunlight while providing variable shading. These innovations demonstrate Ƶ’s ability to leverage cutting-edge technologies to reduce its carbon footprint and position itself as a global leader in solar energy,” he added.

Solar sector contribution to the Kingdom’s economic diversification and energy goals

The growth of Ƶ’s solar energy industry is vital for the nation’s economic diversification and is in line with the goals of Vision 2030. Through the enhancement of solar power infrastructure, Ƶ is catalyzing the emergence of fresh sectors, enticing international investments, and cultivating a culture of innovation.

“This growth not only supports local manufacturing and supply chains but also generates employment opportunities and enhances human capital development, positioning the Kingdom as a regional leader in renewable energy,” Decker from Oliver Wyman said.

“In terms of energy security, solar power contributes to a resilient and diversified energy mix. By incorporating advanced solar technologies, energy storage, and smart grids, Ƶ can enhance the flexibility and stability of its electricity grid,” he added.

The Oliver Wyman partner continued to highlight that solar-powered initiatives, like green hydrogen production, ensure that the Kingdom adds an additional stream of energy exportation, tapping into new revenue streams while promoting environmental sustainability.

“This strategic expansion strengthens Ƶ’s energy capabilities for the future,” Decker concluded in that regard.




Christopher Decker, Partner in Energy and Natural Resources at Oliver Wyman, India, Middle East and Africa. (Supplied)

Demand for power is ever increasing in the Kingdom, largely driven by economic and population growth as well as giga-scale developments across the country.

“The wide deployment of solar projects can also prop up adjacent sectors such as battery storage, smart grid technologies and green hydrogen production. From an energy security perspective, burning less hydrocarbons for domestic use frees up more oil for export, enhancing revenues for investment in economic diversification and also supports the Kingdom achieve its sustainability goals,” he added.

On KAUST’s behalf, De Wolf explained that by investing in renewable energy, particularly solar power, the Kingdom is reducing its dependence on fossil fuels and building a more sustainable and resilient economy.

As for Gan, he indicated that given its geographical location, Ƶ has an abundance of solar energy, surpassing that of many developed countries – an evident advantage in terms of available sunlight as an energy source.

“However, high temperatures present a significant challenge, leading to overheating in semiconductor solar cells. To effectively implement PV systems in Ƶ, it is essential to develop specialized solutions that fully account for the unique local weather and environmental conditions. Such solutions must aim to maximize the utilization of abundant solar energy while mitigating the adverse impacts on PV performance,” the professor said.

He further noted that developing these specialized solutions will require further research and development, presenting both opportunities and challenges in advancing energy security goals.

El-Borai from PwC noted that by shifting toward renewables, the Kingdom is securing a more stable and sustainable energy supply, which supports broader economic growth.

“The localization of renewable energy manufacturing is another critical component. Ƶ is focusing on producing renewable energy components domestically, reducing import dependency and positioning itself as a hub for clean energy technologies. By localizing renewable energy production, Ƶ is positioning itself as a hub for clean energy technology in the region, enhancing both economic growth and energy security,” he said.

“By 2030, Ƶ aims to produce 1.2 million tonnes of green hydrogen annually, with solar energy powering the electrolysis process. This dual focus on solar and hydrogen is expected to drive further economic diversification and solidify the Kingdom’s leadership in green energy,” El-Borai added.

Challenges encountered in the Kingdom’s solar industry

The deployment of solar energy in Ƶ faces significant challenges, particularly around localizing the value chain and addressing environmental factors such as high temperatures and dust.

From Decker’s perspective, Ƶ faces several challenges in scaling up its solar energy capacity, two of which are infrastructure limitations and regulatory complexities.

“To address these challenges, Ƶ is investing in modernizing its grid infrastructure through smart grid technologies and energy storage solutions, enabling better management of intermittent solar power. The government is working on streamlined regulatory processes and introducing incentive schemes, such as public-private partnerships and favorable tariffs, to encourage private sector investment, but there is still much to do in this area,” he added.

From Arthur D. Little Middle East’s side, Merhaba said that in order to meet its highly ambitious objectives by 2030, the Kingdom will have to overcome technical challenges, global supply chain issues due to increasing demands for solar cells, and supply concentrated largely in China.

There are also concerns around the disruptions in global trade, the localization and human capital needed to ensure development of a robust and competitive solar value chain industry in the Kingdom, and adequate supply of engineers and technicians to meet the growing demand in the sector.

The country has strong strategies and policies, including national industrial and localization plans, along with other initiatives, that are poised to help them tackle these obstacles effectively.

Saudi Vision 2030 impact on strategies for transitioning toward renewable energy sources

By 2030, Ƶ aims to produce approximately 58.7 GW of renewable energy, with solar energy contributing 40 GW to this total.

On behalf of Oliver Wyman, Decker explained that in terms of establishing a regulatory framework to facilitate the development of renewable energy, Vision 2030 outlines the need for a supportive environment.

This involves creating policies that incentivize private sector participation through Power Purchase Agreements that guarantee long-term revenue for investors, subsidies and tariff reforms to make renewable energy more competitive, and streamlined licensing processes to reduce bureaucratic hurdles for solar projects. 

With regards to promoting private sector investment, Decker highlighted that the Saudi government is actively encouraging public-private partnerships and foreign direct investment to drive the growth of solar power projects. 

“The National Renewable Energy Program, launched under Vision 2030, is a key initiative that seeks to attract $30-$50 billion in investments for renewable energy projects,” he said.

In terms of maintaining a strong traditional energy sector while investing in diversification, Decker added: “While Vision 2030 emphasizes the transition to renewable energy, it also acknowledges the importance of maintaining a robust traditional energy sector, particularly oil and gas, which remain critical to the Kingdom’s economy.”

This comes as Ƶ aims to optimize its oil and gas production through technological advancements and efficiency improvements to ensure the sector continues to generate revenue.

On behalf of Arthur D. Little Middle East, Merhaba highlighted that the Kingdom has undergone a pivotal shift in its economic and energy landscape in recent years.

“It ushered in the era of renewables and accelerated the deployment of solar. With a highly ambitious target to achieve 50 percent renewable adoption by 2030, which are under consideration for an upward revision, it has not only led to development of mega solar projects at record low prices, but also to build momentum in developing national champions across the solar value chain,” he said.

KAUST representative De Wolf reiterated the fact that the Vision has created a favorable climate for investment and development, with ambitious renewable energy targets shaping the future of the Kingdom’s energy mix.

Similarly, Gan emphasized that the Vision 2030 has created fertile ground for solar energy development, with policies that incentivize public-private partnerships and invest heavily in renewable energy infrastructure.

“This initiative aims to diversify the Kingdom’s energy mix by transitioning toward cleaner, more sustainable energy sources,” he said.

From PwC’s side, El-Borai explained that the National Renewable Energy Program is central to this.

“By 2060, Ƶ aims to reach Net Zero status, supported by significant financial commitments, such as the planned $266 billion investment in cleaner energy sources, including solar,” he said.

“The Kingdom is actively developing projects with a capacity of 20 GW annually to meet its target of 100 GW to 130 GW of clean energy by 2030. This strategic framework also emphasizes localizing renewable energy manufacturing, with collaborations like the Public Investment Fund’s partnership with Chinese solar manufacturers to establish 30 GW of solar PV production capacity. The NREP is not just about generating clean energy — it’s about securing the Kingdom’s energy future and reducing its reliance on fossil fuels,” the PwC partner said.


Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations
Updated 14 sec ago

Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations

RIYADH: Ƶ and Nigeria held high-level talks to discuss financial and economic developments, focusing on regional and global challenges, as well as opportunities for collaboration. 

The meeting, led by the kingdom’s Minister of Finance Mohammed Al-Jadaan, included a delegation from the African country headed by Finance Minister Wale Edun and Budget and Economic Planning Minister Abubakar Atiku Bagudu.

The discussions aimed to strengthen economic ties and explore joint strategies to navigate evolving financial landscapes. 

This comes as trade between Nigeria and Ƶ showed a significant imbalance in 2023, with Nigeria exporting goods worth $76.29 million to the Kingdom, while imports from Ƶ amounted to $1.51 billion, according to the UN COMTRADE database on international trade.


Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
Updated 5 min 37 sec ago

Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
  • Parallel market dropped by 0.11% to 30,920.40
  • MSCI Tadawul Index shed 3.17 points to close at 1,496.90

RIYADH: Ƶ’s Tadawul All Share Index slipped on Tuesday, as it shed 34.84 points, or 0.29 percent, to close at 11,913.95. 

The Kingdom’s parallel market also dropped by 0.11 percent to 30,920.40, while the MSCI Tadawul Index shed 3.17 points to close at 1,496.90. 

The total trading turnover of the benchmark index was SR3.83 billion ($1.02 billion), with 64 of the listed stocks advancing, while 168 declining. 

The best-performing stock of the day was Al-Baha Investment and Development Co., as its share price surged by 9.09 percent to SR0.48. 

Other top performers were Saudi Chemical Co., increasing 4.66 percent to SR9.66, and Shatirah House Restaurant Co., rising 4.44 percent to SR21.30. 

The share price of United Electronics Co. slipped by 6.77 percent to close at SR92.20. 

First Milling Co. announced the successful expansion of its Mill A, boosting production capacity from 300 tons to 550 tons per day. 

In a Tadawul filing, the company, which produces flour, feed, and bran, said that the financial impact of the expansion will be reflected in the fourth quarter of this year. 

The company’s share price gained 1.35 percent, closing at SR59.90. 

Banque Saudi Fransi announced that its shareholders approved a 107.4 percent capital increase, raising its capital from SR12.05 billion to SR25 billion. 

The bank said that the decision was finalized during an extraordinary general meeting held on Dec. 23. 

Banque Saudi Fransi’s share price dropped 0.62 percent to close at SR15.94. 

Meanwhile, retail investors began subscribing to 3.47 million shares of Saudi-based online beauty brand Nice One on the main market. 

The company announced on Dec. 16 that it set the final offer price for its initial public offering at SR35 per share, aiming to raise SR1.2 billion. 

The retail subscription period, which started on Dec. 24, will run through Dec. 25. 

Ƶ’s Capital Market Authority approved Ejada Systems Co.’s request to float 20.05 million shares, representing 45 percent of its share capital. 

In a statement on Tadawul, the company said that its prospectus will be published well ahead of the subscription period. 

It will provide investors with key information, including financial statements, business activities, and management details to support informed investment decisions. 


EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan
Updated 24 December 2024

EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan

EBRD supports Africa’s largest onshore wind project in Egypt with $275m loan
  • 1.1 GW wind farm in Egypt will reduce annual CO2 emissions by more than 2.2 million tonnes
  • Loan to Suez Wind consists of $200 million A loan from the EBRD and $75 million in B loans from Arab Bank and Standard Chartered

JEDDAH: The European Bank for Reconstruction and Development is supporting Egypt in launching Africa’s largest wind farm, backed by a $275 million syndicated loan.

The loan to Suez Wind consists of a $ 200 million A loan from the EBRD and $ 75 million in B loans from Arab Bank and Standard Chartered, the international financial institution said in a press release.

It added that the initiative is being co-financed by the African Development Bank, British International Investment, and Deutsche Investitions- und Entwicklungsgesellschaft, as well as the OPEC Fund for International Development and the Arab Petroleum Investments Corporation.

The wind farm in the Gulf of Suez will have an installed capacity of 1.1 gigawatts, delivering clean, renewable energy at a lower cost than conventional power generation. It is expected to produce over 4,300 GWh of electricity annually and reduce CO2 emissions by more than 2.2 million tons per year, supporting Egypt’s energy sector alignment with its commitments under the Paris Agreement.

Rania Al-Mashat, Egypt’s minister of planning, economic development, and international cooperation, said that her country is committed to advancing its renewable energy ambitions, aiming to derive 42 percent of its energy mix from renewable sources by 2030, in line with their nationally determined contributions.

“Through our partnership with the EBRD, a key development partner within the energy sector of Egypt’s country platform for the NWFE program, we are mobilizing blended finance to attract private-sector investments in renewable energy,” said Al-Mashat, who also serves as governor of the north African country to the EBRD

The minister added: “So far, funding has been secured for projects with a capacity of 4.7 gigawatts, and we are working collaboratively to meet the program’s targets to reduce Egypt’s fuel consumption and expand clean energy projects.”

Managing Director of the EBRD’s Sustainable Infrastructure Group, Nandita Parshad, expressed pride in the bank’s role as the largest financier of the landmark 1,100-megawatt wind farm in the Gulf of Suez, which is also the largest onshore wind farm in EBRD’s operational countries to date.

“Egypt continues to be a trailblazer for large-scale renewables in Africa: first with the largest solar farm and now the largest windfarm on the continent. Great to partner on both with ACWA power and to bring new partners in this project, Hassan Allam Utilities and Meridiam,” she said.

Suez Wind is a special project company jointly owned by Saudi energy giant ACWA Power and HAU Energy, a recently established renewable energy equity platform that the EBRD is investing in alongside Hassan Allam Utilities and Meridiam Africa Investments.

The EBRD, of which Egypt is a founding member, is the principal development partner in the republic’s energy sector under the Nexus of Water, Food, and Energy program, launched at COP27. This wind farm is one of the first projects within NWFE’s energy pillar, advancing progress toward the country’s 10-gigawatt renewable energy goal.

It plays a vital role in supporting Egypt’s efforts to decarbonize its fossil fuel-dependent power sector and achieve its ambitious renewable energy targets.

Since the EBRD began operations in Egypt in 2012, the bank has invested nearly €13.3 billion in 194 projects across the country. These investments span various sectors, including finance, transport, and agribusiness, as well as manufacturing, services, and infrastructure, with a particular emphasis on power, municipal water, and wastewater projects, according to the same source.

Last month, EBRD announced it was supporting the development and sustainability of Egypt’s renewable-energy sector by extending a $21.3 million loan to Red Sea Wind Energy.

The loan was established to fund the development and construction of a 150-megawatt expansion to the 500-megawatt wind farm currently being constructed in the same region.


UAE non-oil sectors push GDP growth to 4% in 2024: CBUAE

UAE non-oil sectors push GDP growth to 4% in 2024: CBUAE
Updated 24 December 2024

UAE non-oil sectors push GDP growth to 4% in 2024: CBUAE

UAE non-oil sectors push GDP growth to 4% in 2024: CBUAE
  • Growth is projected to accelerate to 4.5% in 2025 and 5.5% in 2026
  • Non-oil GDP growth is forecast to remain robust, expanding by 4.9% in 2024 and 5% in 2025

RIYADH: The UAE economy is expected to grow by 4 percent in 2024, driven by robust performance across key non-oil sectors, according to official projections. 

The Central Bank of the UAE’s Quarterly Economic Review for December indicates that growth will be supported by sectors including tourism, transportation and financial services, as well as insurance, construction, real estate, and communications. 

Looking ahead, growth is projected to accelerate to 4.5 percent in 2025 and 5.5 percent in 2026, as the country continues to benefit from economic diversification policies aimed at reducing its dependence on oil revenues. 

Non-oil GDP growth is forecast to remain robust, expanding by 4.9 percent in 2024 and 5 percent in 2025. 

The report attributed this growth to strategic government policies aimed at attracting foreign investment and promoting economic diversification. 

In the second quarter, non-oil GDP grew by 4.8 percent year on year, compared to 4.0 percent in the first quarter, supported by manufacturing, trade, transportation and storage, and real estate activities. 

In September, the CBUAE revised its GDP growth forecast for the year upward by 0.1 percentage points, citing expected improvements in the oil sector. 

Initially projecting a 3.9 percent growth for 2024, the central bank adjusted the figure to 4 percent. In its second-quarter economic report, the CBUAE forecasted a growth rate of 6 percent for 2025. 

The UAE’s 16 non-oil sectors continued their steady growth in the third quarter of the year, with wholesale and retail trade, manufacturing, and construction being key contributors. 

The manufacturing sector has benefited from increased foreign direct investment, aligning with both federal and emirate-level strategies. 

The first nine months of the year also saw strong performance in the construction sector, reflecting significant investment in infrastructure and development projects. 

Non-oil trade exceeded 1.3 trillion dirhams ($353.9 billion) in the first half of the year, representing 134 percent of the country’s GDP, a 10.6 percent year-on-year increase. 

This growth underscores the success of the UAE’s economic diversification agenda and its comprehensive economic partnership agreements with various countries, which have strengthened trade relationships and driven exports.

The UAE has set ambitious economic targets to diversify its economy and reduce dependence on oil revenues.  

Under the We the UAE 2031 vision, the country aims to double its GDP from 1.49 trillion dirhams to 3 trillion dirhams, generate 800 billion dirhams in non-oil exports, and raise the value of foreign trade to 4 trillion dirhams.  

Additionally, the UAE plans to increase the tourism sector’s contribution to GDP to 450 billion dirhams. 

Oil production averaged 2.9 million barrels per day in the first 10 months of the year and is forecasted to grow by 1.3 percent for the year, with further acceleration to 2.9 percent in 2025.  

The fiscal sector also performed strongly in the first half of the year, with government revenue rising 6.9 percent on a yearly basis to 263.9 billion dirhams, equivalent to 26.9 percent of GDP.  

This increase was fueled by a significant 22.4 percent rise in tax revenues. Meanwhile, the fiscal surplus reached 65.7 billion dirhams, or 6.7 percent of GDP, marking a 38.8 percent increase from the 47.4 billion dirhams surplus, or 5.1 percent of GDP, recorded in the first half of 2023.  

Government capital expenditure surged by 51.7 percent year on year to 11 billion dirhams, reflecting the UAE’s commitment to advancing large-scale infrastructure projects and enhancing the country’s economic and investment landscape.

In the private sector, economic activity remained robust, with the UAE’s Purchasing Managers’ Index reaching 54.1 in October this year, signaling continued optimism among businesses driven by sustained demand and sales growth.

Dubai’s PMI stood at 53.2 in October, closely aligning with the national average, indicating consistent growth in the emirate’s non-oil private sector.

Employment and wages also showed strong performance, with the number of employees covered by the CBUAE’s Wages Protection System rising by 4 percent year-on-year in September. 

Average salaries increased by 7.2 percent yearly during the same period, reflecting strong domestic consumption and sustainable GDP growth.  


Ƶ, Iraq to propel digital cooperation amid top ministerial meeting

Ƶ, Iraq to propel digital cooperation amid top ministerial meeting
Updated 24 December 2024

Ƶ, Iraq to propel digital cooperation amid top ministerial meeting

Ƶ, Iraq to propel digital cooperation amid top ministerial meeting
  • Discussions focused on exploring new opportunities for joint investments in the field
  • Two parties shed light on importance of integrating efforts to develop the digital environment, empower capabilities, and raise the level of collaborations

RIYADH: Digital partnerships between Ƶ and Iraq are on track to prosper after a top ministerial meeting between the two countries.

Ƶ’s Minister of Communications and Information Technology, Abdullah Al-Swaha, met with his Iraqi counterpart, Hayam Al-Yasiri, during her visit to Ƶ. The discussions focused on exploring new opportunities for joint investments in the field, according to the Saudi Press Agency.

The meeting also tackled ways to further stimulate entrepreneurship that supports innovation and encourages the growth of the digital economy.

This falls in line with the Kingdom’s objective to position itself as a global leader in artificial intelligence and digital transformation under Vision 2030. Goals include increasing the digital economy’s gross domestic product contribution from 14 percent in 2022 to 19.2 percent by 2025, digitizing 92 percent of government services, and raising the information and communication technology sector’s GDP share to 4 percent.

It also aligns with Iraq’s ongoing efforts to develop a digital transformation strategy to support the private and public sectors and drive economic growth.

During the meeting, the two parties also shed light on the importance of integrating efforts to develop the digital environment, empower capabilities, and raise the level of collaborations in priority areas such as AI as well as infrastructure development.

Earlier this month, as officials convened in Riyadh during the 19th Internet Governance Forum, Ƶ also explored partnership opportunities with Germany, Japan, and France in emerging technologies, AI, and digital infrastructure.

Held from Dec. 15 to 19 at the King Abdulaziz International Conference Center, the UN-organized forum assembled global leaders to endorse global digital cooperation and address emerging challenges related to Internet governance.

At the forum’s opening at the time, the Kingdom revealed the Riyadh Declaration, a commitment to developing inclusive and responsible AI technologies in an attempt to address global challenges and drive economic value. 

In November, Saudi senior tech diplomat Deemah Al-Yahya, the secretary-general of the multilateral Digital Cooperation Organization, held talks with Iraq’s prime minister, Mohammed Shia’ Al-Sudani, about support for Baghdad’s plans to develop its digital business and AI sectors. 
 
The two sides discussed Iraq’s digital transformation strategy and the need to create and develop a workforce with the tech skills required to help grow the Iraqi economy effectively, SPA said at the time.