AI-powered Business Development for Startups: Opportunities and Collaborations between Saudi Arabia and France

AI-empowered business development for startups

Introduction

Generative artificial intelligence (AI) is projected to have a massive impact on the global enterprise software market, growing it from $1 trillion to $14 trillion by 2030, according to the Minister of Communications and Information Technology of Saudi Arabia. This growth presents significant collaboration opportunities for Saudi Arabia and France, as both nations can leverage talent and technology to promote social equality and economic growth. Saudi Arabia’s technology and digital markets have already grown to $40 billion since the implementation of Vision 2030, making it one of the largest and fastest-growing markets in the world. Additionally, the country has made significant progress in women’s empowerment, with a 33 percent representation of women in science, technology, engineering, and mathematics. The Kingdom’s emergence as a global tech hub is evident through initiatives like sending the first Arab Muslim woman astronaut to the international space station.

The France-Saudi Investment Forum

The France-Saudi Investment Forum serves as a platform to discuss critical issues in various sectors, creating visibility for new investment opportunities in technology startups and entrepreneurship. This forum focuses on sectors such as tourism, culture, technology, and clean energy. It facilitates discussions between top Saudi and French officials to unlock new avenues for economic growth and strengthen bilateral relationships.

Rally in Pakistani stocks

The inclusion of 15 Pakistani companies in the Frontier Markets Index maintained by Morgan Stanley Capital International (MSCI) has instilled confidence in investors and highlighted the potential for higher returns in the Pakistani stock market. Frontier markets, with less developed financial markets and lower liquidity compared to emerging markets, offer attractive investment opportunities. As a result, the benchmark KSE100 index experienced a bullish trend, rising to 48,898.82 points during intraday trading. This positive momentum can be attributed to the increased weightage of Pakistan in the MSCI Frontier Market Index, which has attracted foreign inflows to the country’s equity markets.

European stocks fall on uncertainty over US inflation

European stock indexes experienced a decline in early trading due to uncertainty over US inflation. The consumer price index in the US rose by 0.2 percent in July, the same increase as in June. This initially relieved markets, as it reduced the likelihood of another Federal Reserve rate hike in the near future. However, caution remains among investors, as San Francisco Federal Reserve Bank President Mary Daly stated that more progress is required to combat inflation effectively. This cautionary sentiment was reflected in Asian stocks, reaching a one-month low, and European indexes, with the STOXX 600 falling by 0.7 percent. The MSCI World Equity index also experienced a 0.3 percent decline. Investors eagerly await US producer price and consumer sentiment data to gain further insights into the inflation trend.

Oil updates

Oil prices witnessed gains due to optimistic demand forecasts from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA). Brent crude rose by 0.6 percent to $86.89 per barrel, while US West Texas Intermediate crude futures increased by 0.6 percent to $83.31. The sustained rally in oil prices since June is driven by market optimism and OPEC+ output cuts. The IEA predicts a potential sharp decline in global inventories throughout 2023, which could further increase oil prices. However, demand growth is expected to slow down in 2024, mainly due to lackluster macroeconomic conditions, a post-pandemic recovery losing momentum, and increased usage of electric vehicles.

Deal to boost efficiency of Saudi farmers

The Agricultural Development Fund of Saudi Arabia and the Reef National Foundation have signed a memorandum of understanding to enhance developmental and financing support for the agricultural sector. The deal aims to increase the efficiency and productivity of farmers, rural families, and craftsmen through training programs. This initiative aligns with the fund’s objective to boost support for agricultural activities in the Kingdom. It also fosters the exchange of consultations and data, as well as participation in workshops and conferences between the two parties. The agricultural fund previously approved a tranche of development loans worth SR1.5 billion ($400 million), providing financial support to small farmers involved in various agricultural activities.

Rosewood project’s design contract awarded

Red Sea Global, the developer of renowned tourism destinations like the Red Sea Project and AMAALA, has awarded the design contract for the Rosewood Hotels and Resort at Triple Bay to SALCO. SALCO, known for its expertise in delivering extraordinary outdoor spaces, will transform the outdoor areas of the property in line with the design concept. The goal is to create captivating oases that blend seamlessly with the surrounding natural environment, elevating the guest experience and showcasing the wonders of AMAALA. This partnership reflects a shared commitment to excellence, sustainability, and environmental stewardship. AMAALA’s Triple Bay project, the first phase of development, will feature eight hotels and over 1,200 hotel keys, contributing to a world-leading luxury regenerative tourism destination on the west coast of Saudi Arabia.

Conclusion

The integration of AI in business development presents immense opportunities for startups, as the global enterprise software market is expected to reach $14 trillion by 2030. Saudi Arabia and France can collaborate to leverage talent and technology, promoting social equality and economic growth. Additionally, the inclusion of Pakistani companies in the Frontier Markets Index reflects growing investor confidence and the potential for higher returns in the Pakistani stock market. Uncertainty over US inflation has impacted European stock indexes, while oil prices have witnessed gains due to optimistic demand forecasts. The agricultural sector in Saudi Arabia is set to receive enhanced support and development through a partnership between the Agricultural Development Fund and the Reef National Foundation. Finally, the design contract for the Rosewood Hotels and Resort at Triple Bay has been awarded, signaling significant progress in the development of renowned tourism destinations in Saudi Arabia.