The KSA is one of the fastest transforming countries in the world as a result of working to diversify its economies by entering into new sectors that have contributed to the development of the national innovation system during the past decade, as the total number of patents obtained by Saudi Aramco since its establishment in 1933 until 2010 was about 100 patents. In 2021 alone, the company acquired 864 patents from the US Patent and Trademark Office, ranking first in the oil and gas sector at the world level and entering the list of the top 50 companies and universities that obtained patents this year. In 2022, the company stepped up its research and innovation efforts, with the number of patents rising to 963.
The Kingdom’s leap in 2022 in the Global Innovation Index is the best testimony to the magnitude of the development, as it jumped 15 places in the index ranking issued by the World Intellectual Property Organization (WIPO).
Regarding digital infrastructure, the Kingdom ranked second among the G20 countries according to the 2021 Digital Competitiveness Report issued by the European Center for Digital Competitiveness.
In 2017, only one Saudi company entered the Forbes list of the most funded startups in the Middle East, increasing to two companies in 2020, and in 2022 the number increased to 5 Saudi companies in the top ten on the list.
The Kingdom has focused its innovation efforts on sustainability, committing to increasing the proportion of power generation from renewable sources to reach 50% by 2030 in preparation for achieving zero neutrality by 2060. In the same scope, the Saline Water Conversion Corporation (SWCC) entered the Guinness Book of Records, with a new record being the lowest energy-consuming desalination plant in the world, at a rate of 2.27-kilowatt hours per cubic meter of desalinated water.
This article reveals Saudi Arabia’s Research, Development, and Innovation Authority (RDIA) report issued in partnership with Forbes Middle East on the 10 most innovative companies in the Kingdom, with an account of each company’s innovation achievements, including sustainability initiatives, to inspire other companies on their journey towards innovation.
1. Saudi Arabian Oil Co. (Saudi Aramco)
Saudi Aramco was the world’s second most valuable company as of November 14, 2022, and is one of the major contributors to the Saudi Vision 2030. In 2021, the company invested over $1 billion into research and development across its 12 global research centers, with a focus on technologies including IoT, AI, big data analytics, machine learning, and cloud computing. Besides that, it was also awarded 864 U.S. patents, ranking it number one in the oil and gas industry globally and among the top 50 of all companies and universities that received U.S. patents that year, according to the Patent 300® List. The following year was also full of achievements, as in 2022, Aramco announced a partnership with Aston Martin Racing to conduct research and development into highly-efficient internal combustion engines, high-performance sustainable fuels, advanced lubricants, and non-metallic materials for vehicles. The company is also planning to invest $800 million over the next two years into two projects installing Vapor Recovery Units and Vapor Handling Facilities.
2. Saudi Basic Industries Corp. (SABIC)
With operations in over 50 countries and 10,090 patents and pending applications in 2021, SABIC works with universities, institutes, and research centers to promote collaboration in fundamental and applied research. And the company also has a Corporate Technology and Innovation initiative that comprises research projects across 20 centers with a focus on technologies, including nanotechnology, AI, and machine learning. SABIC’s products include specialty-engineered thermoplastic resins and compounds, composites, thermosets and additives, and additive manufacturing solutions. In 2021, SABIC established a partnership with chemical and industrial gas giants BASF and Linde to develop electrically-powered steam cracker technology that aims to reduce carbon emissions by over 90%. Besides these achievements, it plans to invest $1.4 billion into its Teesside petrochemical facility to reduce its carbon footprint initially by up to 60%. It also entered an agreement with the World Economic Forum and industry partners to formalize the “Low-Carbon Emitting Technologies Initiative” into a stand-alone entity by 2023.
3. NEOM
Regional developer NEOM is in the process of creating the world’s first sustainable and hyper-connected cognitive city as part of the Saudi Vision 2030. The group relies heavily on 5G hyperconnectivity, AI, robotics, purpose-built data centers, big data analytics, augmented virtual reality, and automated guided vehicles within its mega projects: Trojena, Oxagon, and THE LINE. The $500 billion signature project of the Saudi crown prince has invested $1 billion in AI, including a metaverse platform in 2022, through NEOM Tech & Digital Company (Tonomus). Led by subsidiary Enowa, NEOM’s urban projects will use renewable energy and advanced water desalination in their future functions. The group has launched the Oxagon Accelerator as an accelerating division to support innovative businesses aiming to build a startup ecosystem aligning with its future vision.
4. Saudi Telecom Company (stc)
stc uses the latest AI and IoT technologies enabled by 5G integration. It also uses the spatial internet, drones and robotics, visual analytics, cloud gaming, and AR in its operations. As of June 2022, it had up to 83.63% market share in Saudi Arabia’s telecom market capitalization, while it ended 2021 with $16.9 billion in revenues. Last year was also full of achievements; by Q2 2022, stc’s 5G implementation across Saudi Arabia reached 7,000 towers, and it had 10 data centers and was planning six more. It has also developed a technical innovation center, which has held several webinars, including “Foster Innovation Culture Awareness” and “Open Ecosystem.” stc has provided 449,160 training hours for its employees in health and safety, cybersecurity awareness, and cybersecurity talent development.
5. Saudi Arabian Mining Company (Ma’aden)
Ma’aden is the largest mining company and construction company in the Middle East, and it has three strategic business units for managing phosphate, aluminum, and gold mining operations. Ma’aden’s Center of Excellence focuses on exploration, project development, and engineering, sustainability, and innovation. Furthermore, the construction company uses decarbonization technologies, advanced exploration intelligence technologies, and circularity solutions. Its smart wearable technology includes helmets for heat stress prevention, which use IoT sensors for the real-time monitoring of officers and construction supervisors. In 2021, Ma’aden invested significant resources into acquiring new technology licenses for its greenfield projects. Its phosphate operations at Ras Al Khair Industrial City use a naturally-engineered wastewater treatment system to treat all the processed water from one of the world’s largest desalination plants. Besides its past achievements, the construction company plans for its mines to use 100% treated sewage water, produce zero groundwater, and be 20% powered by renewable solar energy by 2025
6. Almarai
Almarai’s research and development efforts result in the testing of 630 experimental products annually, with 65 products under development at all times throughout the year. Almarai has 622 products across seven brands, and it has applied for and filed four patents. Besides these efforts, the company has managed to reduce its use of packaging materials, achieving 5,667 metric tons of packaging reduction, including 3,842 metric tons in total plastic packaging reduction, and 1,826 metric tons of paper packaging since 2018. It produces 67% of its cardboard packaging from recycled materials and generates electricity in many of its locations through sustainable energy, including solar panels.
7. Al Rajhi Bank
Al Rajhi Bank employs 10,000 people, of which, 200 work in research and development roles within a dedicated team to advance the bank’s technological and innovative framework while it undergoes its digital transformation and automation. In 2021, the bank generated $7.1 billion in revenues. Al Rajhi Bank has a particular focus on big data and AI, improved cybersecurity, and various financial technologies. Not only that, but it also fosters innovative advancement, primarily through its innovation center, and promotes employees and social engagement through internal campaigns. It also organizes hackathons for employees and universities and promotes customer interaction by inviting them to its state-of-the-art CX Lab. Al Rajhi Bank’s digitization and integration with government sectors aim to help develop a fully-cashless Saudi society. In January 2022, the bank completed its acquisition of Ejada Systems Limited for approximately $173 million.
8. Dr. Sulaiman Al-Habib Medical Services Group Company (HMG)
In 2021, HMG recorded $1.9 billion in revenues. Through the Dr. Sulaiman Al Habib Medical Journal, the group published 35 articles and made 61 submissions to the institutional review board in 2021. And in 2020, HMG launched a rapid response team (RRT) for patients to receive outreach emergency treatment remotely without visiting the hospital. In 2021, it ramped up its teleservices through a telecardiology NABAD 24 program, using cloud solutions designed to rapidly diagnose and react to heart attacks remotely. That same year, HMG signed agreements with Jazan University and Qassim University to establish new VIDA Learning Labs and VIDA Research Centers to integrate cloud solutions into university curricula. Today, HMG has over 230 medical education programs, including five SCHS-accredited HMG diploma programs, with more than 265 trainees enrolled in conjunction with 16 partner universities across Saudi Arabia.
9. ACWA Power
ACWA Power is a power, water desalination, and green hydrogen plant developer, investor, and operator, with operations in 13 countries. In 2021, it invested millions in in-house research and development as well as in acquiring and developing new technologies. It also announced the completion of the acquisition of the first group of assets for the $12 billion Jazan Integrated Gasification Combined Cycle Project. And 2022 was another year full of achievements for ACWA Power, as it launched 36 projects, covering renewables, desalination, green gases, zero-carbon energy systems, system integration, and digital technologies. The company’s innovations are focused on reducing the cost of reliably generating electricity, desalinated water, and green hydrogen. It is also constructing a green hydrogen plant to reduce the carbon emissions of a range of industrial processes and long-distance and heavy transportation.
10. Saudi National Bank (SNB)
SNB fosters innovation through two units. The first one is the digital innovations unit, which looks after digital and technological initiatives, linking internal and external stakeholders and partners. The second is the digital ventures unit that incubates innovation initiatives from external parties. SNB’s technological focus surrounds process digitization through AI data, the implementation of microservices, open APIs, and cloud base operations, and SNB comprises a full-fledged stand-alone neobank. The bank has also introduced a one-stop digital shop for clients, which has helped it achieve 83% in digital penetration, while digital transaction migration has reached 99%. In 2021, 92% of accounts were opened digitally. SNB organizes an annual “Ideathon” program to support innovative entrepreneurs. Besides these achievements, and in collaboration with Monsha’at, SNB has launched three Fintech accelerators, which have helped 30 startups, four of them environmentally focused.
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