Riyadh AI goals require colossal mindset and capital shift

13 September 2024

The ongoing Global AI (Gain) summit in Riyadh is not short on showmanship. Event-branded cars and coaches ferry delegates between their hotels and the car park of the Diplomatic Quarter, where golf carts driven by enthusiastic, cheerful young Saudis await to take them to the chandelier-laden King Abdulaziz International Convention Centre.

The chassis of a luxury electric vehicle from Lucid, which is majority owned by the Public Investment Fund (PIF) and a bright yellow canine-like mobile thermal camera from Boston Dynamics are some of the top crowd drawers at the show, which thousands are attending.

The opening performance of a young Saudi named Omar of the late John Lennon's provocative song Imagine enthralled the audience, composed mainly and albeit ironically of established technology suppliers, startups and venture capitalists looking to create a business or bring home deals out of Saudi Arabia's outsized AI fervour, driven mainly by the need to drive efficiency and foster new industries post-oil.

Abdullah Al-Sharif Alghamdi, president of event proponent Saudi Data and AI Authority (SDAIA) – pronounced Sadaya locally – underscored the kingdom's desire to influence the development of global AI standards, ethics and regulations.

Saudi Arabia ascended the 39-member UN Advisory Body on Artificial Intelligence last year. SDAIA has also established the International Centre for AI Research & Ethics (ICAIRE), which is being classified as a Category 2 institution under the UN Educational, Scientific & Cultural Organisation (Unesco).

During the event, SDAIA and the Organisation for Economic Co-operation & Development (OECD) announced the establishment of a Middle East hub of OECD's AI Policy Observatory, which tracks over 1,000 AI-related policies globally.

Several memorandums of understanding have been signed over the past two days, including making the homegrown seven billion-parameter Allam large-language model available on Microsoft's Azure cloud computing platform.

Graphics processing unit (GPU) leader Nvidia also pledged to work with SDAIA to build a 5,000-GPU supercomputing platform in the kingdom, which will likely require close to $200m in investments based on the average unit price of each Blackwell chip. 

PIF, which plans to create a $40bn AI fund, has not so far made any new announcements at the show, where foreign venture capitalists openly declared that they are looking at world-class AI products to invest in.

Crucially, the presence of female Saudis staffing companies that are exhibiting at the show or visiting it is palpable, and somewhat unprecedented for a technology event being held in one of the world's most conservative societies.

It confirms National Center for AI assistant CEO Steve Plimsoll's statement that there are more female Saudis taking engineering and IT courses today than there are males.

This trend, he says, persists in most Saudi startups, providing the best hope yet of overcoming the kingdom's greatest perceived weakness in implementing its AI strategy – the lack of foundational skillsets, which have been the hallmark of technology epicentres such as the US Silicon Valley.

Plimsoll also told MEED that Allam 7B has outperformed the latest, 13 billlion-parameter version of Google's LLM, Llama, in, a recent benchmark, which indicates that the Saudis are indeed making some headways in realising their AI aspirations.

The executive, who previously served as global chief analytics officer at UK-headquartered HSBC, said over 150 developers worked on Allam, which is envisaged, first and foremost, as an enabler of Saudi government services.  

As the excitement and hype dissipate, the real job of making AI deliver on its promise to foster a prosperous, just society will have to begin for the rest of the kingdom's 36.4 million population.

https://image.digitalinsightresearch.in/uploads/NewsArticle/12508429/main.jpg
Jennifer Aguinaldo
Related Articles
  • UAE firm acquires majority stake in African power producer

    31 August 2026

    Abu Dhabi-based ePointZero has announced a deal to acquire a 90% stake in pan-African independent power producer Azura Power Holdings.

    The transaction will give the subsidiary of UAE investment group 2PointZero control of 752MW of operating power generation capacity across Nigeria, Senegal and Mozambique.

    The company will acquire the respective stakes held by existing shareholders Actis and Africa50 through an acquisition vehicle established with Amaya Capital, an Africa-focused investment firm based in London.

    Amaya Capital founded Azuro Power in 2010 and will retain a 10% minority stake in the company, which also has a development pipeline of more than 1.5GW of planned power projects.

    The pipeline includes expansions at existing sites, as well as new gas and renewable energy projects and battery energy storage systems.

    Azuro Power’s operating portfolio comprises the 461MW Azura-Edo power plant in Nigeria, the 116MW Tobene power plant in Senegal and the 175MW Central Termica de Ressano Garcia plant in Mozambique. The company’s operating assets generate around 10% of each country’s grid baseload power, the statement said.

    The company’s projects have received financing and support from development finance institutions including the World Bank, British International Investment, German Investment & Development Company, the US International Development Finance Corporation, the Dutch entrepreneurial development bank, the International Finance Corporation, the Multilateral Investment Guarantee Agency and France’s Proparco.

    The deal, subject to regulatory approvals and other customary closing conditions, marks ePointZero’s entry into African power generation and follows the acquisition of a 20% stake in Egypt’s Elsewedy Electric in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19171095/main.jpg
    Mark Dowdall
  • Contract award nears for Saudi Landbridge Riyadh section

    31 August 2026

     

    Saudi Arabia Railways (SAR) is preparing to award the main construction contract for the design-and-build of the Riyadh Rail Link, a new north-to-south railway line across the capital.

    MEED understands that the commercial proposals were opened two weeks ago, with a decision expected imminently.

    SAR began the post-tender clarifications with bidders in July, as MEED reported.

    The bidders include:

    • China Civil Engineering Construction Corporation / Al-Ayuni Investment & Contracting (China/local)
    • Nesma & Partners / China Harbour Engineering Company (local/China)
    • Al-Rashid Trading & Contracting / IC Ictas Construction / Saipem (local/Turkiye/Spain)
    • Saudi Binladin Group (local)

    In June, MEED exclusively reported that contractors submitted their commercial proposals on the 30th of that month.

    The scope includes a 35-kilometre double-track line connecting SAR’s North-South Railway to the Eastern Railway network.

    Issued on 29 January, the tender also covers the procurement, construction and installation of associated infrastructure, including viaducts, civil works, utility diversions/installations, signalling systems and other related works.

    Once delivered, the Riyadh Rail Link is expected to become a key component of the Saudi Landbridge railway.

    In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements, and that the project would instead be delivered in several phases under a different procurement model.

    Negotiations have been under way between Saudi Arabia and China-backed investors interested in developing the scheme through a public-private partnership (PPP). Al-Malik put the project cost at about SR100bn ($26.6bn).

    Overall, it comprises more than 1,500km of new track. A core element is a 900km railway between Riyadh and Jeddah, providing the capital with direct freight access to King Abdullah Port on the Red Sea.

    Other key elements include upgrading the existing Riyadh-Dammam line, a bypass around the capital known as the Riyadh Link, and a connection between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. First announced in 2004, it was put on hold in 2010 before being revived a year later. Rights-of-way issues, route alignment and the high cost have been among the main stumbling blocks.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19161887/main.gif
    Yasir Iqbal
  • Prequalification begins for Dammam suburb boulevard PPP

    31 August 2026

    Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with Ashraq Development Company and the National Centre for Privatisation & PPP, has issued a request for qualification (RFQ) notice for the development of the King Fahd suburb boulevard project in Dammam.

    The notice was issued on 27 August, with a submission deadline of 22 October.

    The public-private partnership (PPP) project will be delivered using a design, build, finance, operate, maintain and transfer model, with a 43-year contract term.

    The project is located in Al-Bayda Governorate and features a 4 kilometre (km) mixed-use zone along a central boulevard, forming part of a larger 7.3km corridor.

    The project will be developed in two phases and span about 1 million square metres.

    According to a statement: “The private sector partner will be responsible for developing and operating the boulevard, which includes leisure and recreational facilities, public parks, entertainment venues, retail outlets, office spaces, hospitality zones, pedestrian walkways and road networks.”

    The project is the latest addition to the growing number of PPP projects in the kingdom. 

    In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19160560/main.jpg
    Yasir Iqbal
  • Contractors submit bids for Kuwait power transmission works

    31 August 2026

     

    Kuwait’s Public Authority for Housing Welfare (PAHW) has received bids for two tenders covering power transmission works at the South Saad Al-Abdullah residential development.

    The first tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the third phase of the development. 

    According to sources, five contractors submitted bids on 26 August. The local Sayed Hamid Behbehani & Sons made the lowest offer of $104.2m.

    The bids include:

    • Sayed Hamid Behbehani & Sons: $104.2m (Kuwait)
    • Industrial Electrical Projects (IEP): $111.5m (Kuwait)
    • Larsen & Toubro: $114m (India)
    • Oman National Engineering & Investment: $118m (Oman)
    • National Contracting Company: $126m (Saudi Arabia)

    The second PAHW tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the fourth phase of the project. 

    According to sources, five contractors also submitted bids on 26 August, with A-Ahleia Switchgear making the lowest offer of $103.3m.

    The bids include:

    • Al-Ahleia Switchgear: $103.3m (Kuwait)
    • Industrial Electrical Projects (IEP): $111.7m (Kuwait)
    • Larsen & Toubro: $114m (India)
    • Oman National Engineering & Investment: $118.3m (Oman)
    • National Contracting Company: $126m (Saudi Arabia)

    Both projects were initially tendered in May. As reported by MEED, PAHW previously issued addendums for both substation tenders, revising the qualification requirements for bidders.

    According to the revised requirements, contractors must be approved by Kuwait’s Ministry of Electricity, Water & Renewable Energy and have experience supplying and installing at least 10 132kV substations in Kuwait.

    The addendums also introduced requirements related to transformer and gas-insulated switchgear manufacturing approvals, as well as operational performance records for installed equipment.

    Sabah Al-Ahmad residential city

    Meanwhile, bids remain under evaluation for two 132kV underground cable tenders for the South Sabah Al-Ahmad residential development, tendered by PAHW in May.

    The first cable tender covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts in the project’s fourth phase. 

    MEED previously reported that Egytech Cables, a subsidiary of Egypt’s Elsewedy Electric, was the lowest bidder with an offer of $42.37m.

    The second cable tender covers the supply, extension and maintenance of 132kV underground cables linked to substations serving the N5, N6, N8 and N10 districts in the project’s third phase. 

    Egytech Cables submitted the lowest offer of $39.95m. TBEA Shandong Luneng Taishan Cable submitted a bid of $41.89m, along with Riyadh Cables ($42.05m) and The Contractor General Trading & Contracting ($44.97m).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19151780/main.jpg
    Mark Dowdall
  • Eni plans to drill 230 oil and gas wells in Egypt

    31 August 2026

    Italy’s Eni is planning to drill 230 new oil and gas wells in Egypt, according to a statement from the country’s Ministry of Petroleum & Mineral Resources.

    Eni’s chief executive, Claudio Descalzi, discussed his plans for exploration and development in Egypt on 25 August during a meeting with Egypt’s Prime Minister Mostafa Madbouly and the Minister of Petroleum and Mineral Resources Karim Badawi.

    During the meeting, Descalzi said that the company has plans to drill 30 exploration wells in addition to 200 development wells.

    Descalzi said his company plans to intensify its exploration and development programmes, especially in the Mediterranean and Western Sahara regions, to increase production of natural gas and crude oil.

    He said that his company plans to use the latest seismic imaging and artificial intelligence technologies as a key part of its exploration and development plans.

    In a separate statement, Eni also said that it is working with UK-headquartered BP and state-owned Egyptian General Petroleum Corporation (EGPC) to reach a final investment decision (FID) for a project to develop the major gas discovery of Denise West in Egypt’s Temsah concession.

    Eni made the discovery in February and says it holds about 2 trillion cubic feet of gas and 130,000 barrels of condensate.

    It is targeting first gas in less than two years and expects to reach FID “in the next few months”, according to its statement.

    Eni’s total investments in Egypt have reached a value of $8.5bn, according to the statement from Egypt’s Ministry of Petroleum & Mineral Resources.

    During the meeting on 25 August, Descalzi also stressed the importance of linking Cyprus’ Cronos gas field to Egyptian export infrastructure.

    In July, Eni reached the FID to develop the Cronos project in deep waters offshore Cyprus, targeting the first Cypriot gas to market in 2028.

    Production is expected to reach a plateau of 500 million standard cubic feet a day.

    In October last year, Egypt and Cyprus signed provisional agreements to connect Cyprus’ Cronos gas field to Egypt’s gas infrastructure.

    The agreements were signed by parties including Egypt’s Ministry of Petroleum and Mineral Resources, Eni, and the French oil and gas company TotalEnergies.

    Connecting the Cronos field to Egypt is expected to involve the tendering of a major subsea pipeline project.

    This will allow gas to be transported and processed in existing Zohr facilities in Egypt, then transferred and liquefied at the Damietta LNG plant for export as LNG to international markets, primarily Europe.

    At the meeting on 25 August, Descalzi said the planned project to connect the Cronos field to Egypt will be considered a model for regional cooperation in the gas sector and will enhance Egypt’s status as a regional gas hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19079059/main.jpg
    Wil Crisp