logo
Saudi Vision 2030 driving over $1 trillion in construction investment

Saudi Vision 2030 driving over $1 trillion in construction investment

Trade Arabia10-06-2025

Across Europe, construction innovation often slows at the very moment it should scale. Whether it's modular timber systems, robotics, or artificial intelligence (AI)-enabled solutions, too many breakthroughs get stuck in fragmented pilots and slow-moving procurement, said an industry expert.
Meanwhile, Saudi Arabia is undergoing a historic transformation - its Vision 2030 agenda driving over $1 trillion in construction investment.
From NEOM to Qiddiya, The Red Sea Project and Diriyah Gate, the country's appetite for innovation is not just rhetoric - it's policy, stated Vladimir Vlahovic, the Founder of Solventry, a Austrian consultancy specialising in building construction spinoffs, joint ventures and innovation strategies.
Vlahovic believes Saudi Arabia's construction sector should leverage spinoffs and JVs to accelerate innovation. It highlights how Saudi-European partnerships are helping turn proven technologies into industry benchmarks.
European firms often struggle to scale innovation at home. Regulatory complexity, fragmented approvals, and a risk-averse procurement culture make internal spinoffs and ConTech startups hard to sustain.
By contrast, Saudi Arabia offers: A long-term investment horizon; Government-driven localisation incentives and Mega-projects that are open to proven, yet under-deployed technologies.
For firms looking to break out of the pilot trap, Saudi Arabia offers a testing ground at unprecedented scale, he stated.
Austria's Rhomberg Group created CREE GmbH to bring its hybrid timber modular system to market. Despite strong sustainability credentials and technical reliability, adoption in Europe remained limited.
In 2023, Portuguese contractor Casais became a shareholder in CREE. By 2025, Casais partnered with Saudi-based Nahaz Investment Group to launch Casais Entirez, a JV focused on delivering modular, sustainable buildings aligned with Vision 2030.
In December 2024, the NEOM Investment Fund partnered with Denmark's GMT Robotics to bring robotic automation into rebar cage assembly - one of the most labour-intensive and hazardous activities in construction, said Vlahovic.
GMT's robotic systems enable high-precision off-site fabrication, reducing on-site labour by up to 90% and improving safety and speed.
This collaboration aligns with NEOM's goal to establish new global standards for industrialised construction.
Although already present in the region, German tower crane manufacturer Wolffkran entered into a joint venture with Saudi Arabia's Zamil Group in early 2024 to establish a local manufacturing facility in Riyadh.
The JV will produce 300 cranes to support the Kingdom's growing construction needs.
These case studies demonstrate a clear pattern: when European innovation meets Saudi delivery ambition, well-structured partnerships enable scale.
According to Vlahovic, properly designed JVs and spinoffs offer operational autonomy with corporate support; shared investment risk and accelerated market entry as well as localisation, cultural integration, and long-term scalability.
Some of the key success factors for joint ventures in Saudi Arabia include:
*Strategic Fit – Solutions must address Vision 2030 priorities such as digital infrastructure, housing, industrialisation, and automation.
*Operational Autonomy – JV teams should lead market strategy, client relationships, and execution—without excessive oversight from parent firms.
*Cultural Integration – Partnerships must blend startup agility with corporate discipline and combine international standards with local insight.
Vlahovic pointed out that Saudi Arabia was not just building cities - it was also redefining how construction should be delivered.
"With Vision 2030 and the 2034 FIFA World Cup driving record-breaking investment, the demand for scalable, tech-enabled construction delivery is growing rapidly," he stated.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SAUDI'S BOLD BET: ACCELERATING VISION 2030 THROUGH INTELLIGENT INNOVATION
SAUDI'S BOLD BET: ACCELERATING VISION 2030 THROUGH INTELLIGENT INNOVATION

Syyaha

time12-06-2025

  • Syyaha

SAUDI'S BOLD BET: ACCELERATING VISION 2030 THROUGH INTELLIGENT INNOVATION

By Ismail Ibrahim, Sales Director & General Manager for CEMEA at SUSE Saudi Arabia is undergoing a once-in-a-generation transformation, one that is as much about digital intelligence as it is about economic diversification. At the heart of this transition lies artificial intelligence (AI), now a cornerstone of Vision 2030. More than just a technological upgrade, AI is evolving into a system-wide force, reshaping how the Kingdom educates its people, governs its institutions, builds its infrastructure, and positions itself on the global stage. The foundation for this AI revolution was laid with the creation of the Saudi Data and Artificial Intelligence Authority (SDAIA), an organisation designed to align national policy, research, and investment around emerging technologies. With a vision to become a global leader in AI, Saudi Arabia has set ambitious goals: by 2030, AI is projected to contribute $135 billion to the country's GDP, accounting for 12.4% of its national output. What makes this vision credible is not just the scale of ambition, but the pace of execution that's already underway. A pivotal moment came in May 2025 with the launch of Humain , a sovereign AI company backed by the Public Investment Fund (PIF) and unveiled by Crown Prince Mohammed bin Salman. Humain reflects Saudi Arabia's intent to not just adopt AI, but to create its own AI infrastructure and capabilities from the ground up. Central to this initiative is the development of Arabic-language foundational models, secure data capabilities, and next-generation computing infrastructure, ensuring that AI reflects and serves the cultural and strategic priorities of the region. Yet this transformation isn't just confined to infrastructure and capabilities. Saudi Arabia is taking a whole-of-society approach to AI, embedding it in education, workforce development, and national mega-projects. Giga-projects like NEOM are integrating AI into urban planning, autonomous transport, and civic systems from the ground up, creating living laboratories for intelligent design. Even in healthcare, AI is poised to unlock $27 billion in economic value by 2030, improving everything from diagnosis to hospital operations to individualised patient care. Crucially, Saudi Arabia is not overlooking the ethical dimensions of AI also. The Kingdom ranks amongst the top three nations globally for AI ethics readinessreadines, a reflection of its early investments in responsible AI frameworks. From privacy-preserving technologies to transparent governance mechanisms, the country is positioning itself as a leader not only in innovation, but in how innovation is deployed and regulated. As the ecosystem matures, the role of enterprise technology providers becomes increasingly central. This is where companies like SUSE, known for its enterprise-grade open-source platforms, have an important opportunity to contribute. In a significant move aligning with Vision 2030, SUSE signed a Memorandum of Understanding (MoU) with Saudi Arabia's National Housing Company (NHC) at LEAP 2025. This strategic partnership aims to accelerate digital transformation within the Kingdom's housing sector, leveraging SUSE's expertise in open source solutions to enhance scalability, security, and efficiency in housing projects. SUSE's solutions are well-positioned to support Saudi Arabia's ambitions, —whether in national data centres, sovereign cloud environments, or smart city deployment, providing the backbone on which innovation can reliably thrive. What's unfolding in Saudi Arabia is more than an AI strategy; it's the blueprint of a digital nation. Through bold public investment, international collaboration, and a clear focus on values and talent, the Kingdom is demonstrating what's possible when a country commits not just to using AI, but to helping shape its future. For global leaders in technology, investment, and policy, Saudi Arabia is no longer just a market to watch; it's becoming a partner in building the next intelligent economy.

Cisco powers secure infrastructure for the AI era
Cisco powers secure infrastructure for the AI era

Trade Arabia

time11-06-2025

  • Trade Arabia

Cisco powers secure infrastructure for the AI era

Cisco today (June 11) unveiled new innovations to help companies adapt and transform in the artificial intelligence (AI) era. Enterprises are under pressure to accelerate secure AI adoption and drive value from AI investments, said Cisco in a statement. To help organizations meet these opportunities, Cisco continues to reimagine the datacenters and workplaces of the future, it stated. "Cisco is delivering the critical infrastructure for the AI era—secure networks and experiences, optimized for AI that connect the world and power the global economy," remarked Jeetu Patel, President and Chief Product Officer, Cisco. "We're witnessing an unprecedented surge in innovation as organizations embrace agentic AI to automate workflows and solve complex problems. Cisco has a rich history of helping companies run their infrastructure; today, we're building on that foundation to power the next generation of AI," he added. Patrick Milligan, chief information security officer, Ford Motor Company, said: "Agentic AI is being used across Ford's business, from design to engineering to manufacturing and for customer support." "As we build, deploy, and manage sophisticated AI capabilities at scale, Cisco's networking and security solutions are an important part of the overall technology infrastructure," he explained. At Cisco Live, Cisco unveiled a wide range of new products and enhancements to help customers navigate the shift to agentic AI, including: Workplaces for the age of AI: Creating an intelligent workplace relies on modern network infrastructure that adapts to increased traffic, ensures always-on access, and delivers robust security. Meanwhile, organizations must empower people to work smarter and more effectively than ever. To meet these demands, Cisco announced new devices to power campus, branch, and industrial networks, and AI-powered unified management to help organizations move past reactive workflows to conducting autonomous, proactive network management. Simplified Operations for the age of AI with AgenticOps: Cisco is unveiling multiple AI-driven solutions to empower IT teams with simplicity, and automation, including Cisco AI Canvas, an industry-first generative user interface for real-time collaboration between network and security operations teams, and the Cisco AI Assistant, which provides conversational control across the Cisco suite. Data Centers for the age of AI: Cisco unveiled continued innovation in its compute and network solutions for datacenters to support agentic AI, which places a premium on network bandwidth, latency, and power efficiency. To help drive adoption of AI solutions to strengthen the power grid, Cisco is joining the EPRI Open Power AI Consortium. Security for the age of AI: Robust security has never been more critical, as enterprises navigate the complexity of a growing number of applications, a highly distributed and mobile workforce, and sophisticated AI-driven threats. Cisco is introducing innovations across its Hybrid Mesh Firewall and Universal Zero Trust Network Access (ZTNA) offerings; announced two new Firewalls, the 6100 series and 200 series. Digital Resilience at the Core: Several AI innovations, including enhanced capabilities in Splunk Observability Cloud and Splunk AppDynamics, along with deeper integrations between Cisco and Splunk solutions, are helping customers gain greater visibility into network health and performance. Key updates include a bidirectional integration between Splunk Observability, Cisco ThousandEyes Assurance and Cisco Enterprise Networks, enabling more resilient, insight-driven digital operations. Unified Management for the age of AI: The company is previewing Cisco Cloud Control, a new unified management platform spanning Cisco's networking, security, and observability portfolios. Cisco Cloud Control will offer a cohesive experience anchored by AI native tools like Cisco AI Canvas, and the Cisco AI Assistant.

DHL Group to invest more than $571m in Middle East
DHL Group to invest more than $571m in Middle East

Trade Arabia

time11-06-2025

  • Trade Arabia

DHL Group to invest more than $571m in Middle East

DHL Group (DHL), the world's leading logistics provider, has announced plans to invest more than EUR500 million ($571 million) in the Middle East, with a strategic focus on the rapidly expanding Gulf markets of Saudi Arabia (KSA) and the United Arab Emirates (UAE). This investment, set to take place between 2024 and 2030, underscores DHL's commitment to the region and its importance for the future of global trade. DHL Group's Strategy 2030, launched in 2024, prioritises growth regions and geographic tailwinds generated by shifts in global trade, the company said. The investment spans all four DHL divisions – DHL Express, DHL Global Forwarding, DHL Supply Chain, and DHL eCommerce – and will significantly strengthen the region's logistics backbone. By enhancing infrastructure, expanding networks and capacity, and elevating service capabilities, DHL aims to empower businesses operating across and with the Middle East to capitalise on growth opportunities from trade, ensuring support and resilience for customers as they navigate evolving market demands. The company's divisions provide a broad portfolio of logistics and transportation services to customers in the Middle East, including express parcel delivery, air, ocean and overland freight, warehousing, fulfilment and distribution, customs brokerage and specialized operations for sectors such as life sciences, healthcare, e-commerce and battery logistics. 'The region of the Gulf Cooperation Council (GCC) is rapidly emerging as a global logistics and innovation hub,' said John Pearson, CEO of DHL Express. 'Our investment reflects the region's increasing strategic importance in connecting Asia, Europe, and Africa, and our commitment to supporting its transformation into a catalyst for regional and global trade. DHL Express is seeing dynamic growth and export potential in the region's e-commerce sector, for example, which is providing opportunities for entrepreneurs and smaller businesses to expand their offering to global markets.' Supporting FDI, exports and building supply chain resilience The Middle East is emerging as a vital trade hub, facilitating commerce between Asia, Europe, and the US while serving as a gateway to Africa. The region is witnessing growth not only due to attracting investments from multinationals expanding their operations but also because Gulf- and Middle East-based businesses are growing and increasing their exports. DHL's services, the local and global expertise of its team, and the flexibility offered by the company's extensive transportation and warehousing network and digital platforms, automation and technologies help businesses build supply chain resilience at a time of heightened volatility and uncertainty in global trade. Hendrik Venter, CEO of DHL Supply Chain, Europe, Middle East & Africa, added: 'DHL Supply Chain has actively expanded in Saudi Arabia and UAE in recent years, recognizing the positive economic development, the increasing maturity and sophistication of supply chain operations in the region and the growing demand for specialized, outsourced logistics support. With a strong focus on the energy sector, life sciences, healthcare, and technology, we are poised to take advantage of our contract logistics expertise to meet the unique needs of our customers and drive innovation in these critical areas.' Amadou Diallo, CEO of DHL Global Forwarding, Middle East & Africa, remarked: 'This investment underscores our confidence in the Middle East's economic trajectory and our continued commitment to be ahead of the curve in digital capabilities and sustainable transportation for our customers. We also consistently aim to find entrepreneurial freight forwarding solutions that build supply chain resilience, keep their goods flowing and help them to uncover growth opportunities in a world that is characterized by uncertainty and volatility. By expanding our operations, we will be even better positioned to support our clients in navigating the complexities of international trade and logistics.' DHL Group recognises the growing opportunities in the energy sector, encompassing traditional oil and gas as well as renewables and electrification. The company also sees potential in the life sciences and healthcare markets, alongside the burgeoning e-commerce landscape. For example, Saudi Arabia is experiencing a strong inbound market for B2C, especially with high-end goods, driven by ongoing tourism initiatives and events, it said. Targeted investments in quality, capacity and efficiency The investments will focus on the following areas across DHL's business units: - DHL Express: Investments will be made in hub and gateway facilities, as well as enhancing aviation capacity to improve service efficiency and delivery speed. - DHL Global Forwarding: The company will expand its overall presence in the region, invest in its fleet – including electric trucks – and pursue joint venture initiatives such as the recent joint venture with Etihad Rail to enhance connectivity and logistics capabilities. - DHL Supply Chain: There will be an expansion of the contract logistics offering in both the UAE and KSA, which includes increasing warehousing capacity, upgrading equipment, and integrating advanced technology to optimise operations. - DHL eCommerce: The acquisition of the delivery provider AJEX in Saudi Arabia will enhance DHL's e-commerce capabilities, facilitating better last-mile delivery services in a rapidly growing market. DHL is also committed to sustainability, investing in alternative fuel, and electric delivery vehicles, aviation fuels in air freight and biofuels for road and ocean freight, as well as solar energy and clean power for facilities. This commitment ensures that supply chains become more sustainable, and customers achieve their net zero ambitions. This is aligned with the agenda of governments in the region to lead on environmental sustainability. DHL aims to implement best practices in logistics and innovation, strengthening its longstanding position as a leader and investor in the talent and economic potential of the Middle East, the company said. -TradeArabia News Service

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store