OECD: Fourth Industrial Revolution ‘exciting’ but has downsides

Face of the future: The humanoid robot Sophia was granted citizenship in Saudi Arabia, the first robot in the world to be given nationality. (Getty Images)
Updated 12 February 2019
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OECD: Fourth Industrial Revolution ‘exciting’ but has downsides

  • Challenge is how to empower half of the workforce that will be displaced
  • National leaders urged to broaden their horizons and make appropriate decisions to create a better future

DUBAI: The Fourth Industrial Revolution (4IR) will be exciting and full of promise, but carries downsides, Jose Angel Gurria, the secretary-general of the Organization for Economic Cooperation and Development, said on Monday.

In a discussion with CNN’s Becky Anderson at the World Government Summit (WGS) in Dubai, Gurria said: “The danger is not just about knowing the technology that is growing at breakneck speed, but how you empower half of the workforce that will be displaced.

“The Fourth Industrial Revolution will carry with it many promises and challenges in employing technology and how to use it. Half of the workforce is going to be disrupted by technology, due to over- or under-qualification. How can we motivate and upskill those that will be displaced in the process?”

Gurria focused on the need for countries to realize the effects on labor forces and on generations yet to enter the world of work.

He also urged national leaders to “broaden their horizons and make appropriate decisions in order to create a better future.”

 

Intellectual property in the 4IR

Intellectual property governance policies promote innovation and creativity, according to the World Intellectual Property Organization’s director general, Francis Gurry.

“Effective intellectual property systems ensure that ideas are transformed into products and services that are beneficial to people,” Gurry said. “Through intellectual property, we ensure that good ideas are translated into economic products, balance of interests and competitiveness.”

In 2018 alone, 2.5 million patent applications were filed worldwide, which, Gurry said, explained the need for stricter protection laws.

China and the US lead the world in terms of patent numbers, followed by Japan.

“We have a large number of patents on artificial intelligence, so this sequence must be protected,” Gurry added. “We expect significant changes in the distribution of capacity around the world as a result of the development of artificial intelligence in robots.”

 

Mobility in the 4IR

Artificial intelligence (AI) and nanotechnologies are among the UAE’s key priorities during the 4IR, according to Mattar Mohamed Al-Tayer, Dubai Road and Transport Authority (RTA) general manager.

“The importance of artificial intelligence in the transportation sector lies in three objectives: supporting the management of major events, forecasting traffic, and monitoring and dealing with accidents,” Al-Tayer said during a session at the WGS on “The Future of Mobility in the Age of 4IR.”

He highlighted the accomplishments the RTA has made over the years, turning Dubai into one of the world’s most efficient cities when it comes to mobility and transportation.

“In Dubai, we organized with international transport companies, such as Uber and others, to provide intelligent services to community members.

“The transport sector in Dubai is moving over a million people, and this figure makes us aware of the importance of establishing a solid infrastructure that enhances transportation,” he said.

 


Industrial private sector investments in Saudi Arabia more than double to reach $1.8bn

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Industrial private sector investments in Saudi Arabia more than double to reach $1.8bn

RIYADH: Private sector investments in Saudi Arabia’s industrial field more than doubled in the first quarter of 2024, surpassing SR7 billion ($1.8 billion), according to official data. 

This marks a significant increase from the SR3.34 billion recorded during the first quarter of 2023, according to a report released by the Saudi Authority for Industrial Cities and Technology Zones, also known as MODON.  

The report revealed a substantial rise in the number of constructed factories, reaching 6,683 in the first three months of 2024 compared to 5,894 in the same period last year. 

Moreover, the total number of logistics contracts surged to 367, up from 223 in the first quarter of 2023.  

The report also highlighted a significant growth in industrial contracts, with 276 agreements issued by end of March, nearly doubling the figures from the first three months of 2023.  

Jeddah Third Industrial City led in contract issuance with 76 agreements, followed by Al Kharj Industrial City with 47. Sudair Industrial and Business City recorded 20 contracts, while Dammam Third Industrial City and Dammam Second Industrial City had 18 and 16 agreements, respectively. 

Furthermore, the total regulatory visits conducted in industrial cities during the first quarter amounted to 1,867, underscoring MODON's rigorous oversight.  

In terms of sectoral distribution, food industries secured the highest number of contracts in the first quarter of 2024, constituting 24 percent of the total. They were followed by mining at 12 percent, rubber products industries at 12 percent, chemicals at 8 percent, and electrical equipment at 7 percent. 

Additionally, the number of food factories operating in the Kingdom reached 1,300, indicating the country’s expanded capacity in the sector. This underscores its commitment to the “Food Industry Localization” initiative, aimed at enhancing productivity, local production, and quality. 

These figures come as MODON prepares to engage as a strategic partner in the inaugural Saudi Food Manufacturing Show.   

Scheduled from April 30 to May 2, at Riyadh Front, the event will be under the patronage of the Minister of Industry and Mineral Resources Bandar Al-Khorayef.  

MODON plans to showcase its products, services, and comprehensive solutions for the food industry at the show, targeting investors, small and medium enterprises, and entrepreneurs.   

This effort is aligned with MODON’s role in the National Industrial Development and Logistics Program, aimed at fostering sustainable growth and enhancing value chains.  

The show is expected to host 500 participants from around the globe, including ministers, officials, and industry leaders, as well as CEOs, investors, and experts.

It will feature discussion panels, workshops, and exhibitions, providing a vital platform for displaying the latest in services, products, and solutions for the food industry and its supportive sectors. 


Saudi entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024

Updated 15 min 4 sec ago
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Saudi entrepreneurs among beneficiaries of $493m Social Development Bank funding in Q1 2024

RIYADH: Almost 12,000 Saudi entrepreneurs received support and training from the Kingdom’s Social Development Bank in the first quarter of 2024, it was revealed. 

Minister of Human Resources and Social Development Ahmed Al-Rajhi announced in a post on X that SDB provided financing worth SR1.85 billion ($493 million) in the first three months of this year.

The financing aims to “support individuals and enterprises to contribute to economic development and sustain efforts toward national sustainable growth.”

During the same period, assistance for small and startup businesses amounted to SR606 million for over 1,700 establishments. 

Furthermore, empowerment support for vibrant and productive communities reached SR640 million, benefiting 12,000 citizens through various social developmental products, including marriage, family support, and restoration.

Assistance for freelancers and productive families also surged to SR600 million, benefiting 13,000 individuals. 

Additionally, the number of savings accounts increased by 13,000, reaching a total of 245,000, with a balance exceeding SR525 million.

In January, SDB signed 24 deals worth SR1 billion to support entrepreneurs across various sectors in the Kingdom.    

Inked during the Entrepreneurship and Modern Work Patterns Forum, the memorandums of cooperation encompassed a broad spectrum of sectors, including health, transportation, and logistics.  

This aligns with the objectives of Vision 2030, aiming to reduce the unemployment rate, enhance women’s participation in the workforce, and expand the contribution of small and medium-sized enterprises to 35 percent of the gross domestic product by the end of the decade.     

Speaking at the time, CEO of SDB Ibrahim Al-Rashid said those deals would “open new horizons for entrepreneurship and small and emerging enterprises" by developing new systems for financing, training and qualification.    

Last year, the bank introduced a range of training programs to assist small businesses across the Kingdom. 

The courses covered key areas such as marketing and administration, allowing business owners to meet and discuss their development plans with local and international experts. 


Saudi biotechnology sector poised for double-digit growth: report

Updated 16 min 22 sec ago
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Saudi biotechnology sector poised for double-digit growth: report

RIYADH: Saudi Arabia’s biotechnology and genomics sector is likely to record double-digit growth as it plans to invest 2.5 percent of its gross domestic product in research and development by 2040, aiming to add $16 billion to its economy. 

This was highlighted in a recent report by US-based consulting firm Arthur D. Little, emphasizing the Kingdom’s substantial growth potential in the sector. 

The study highlighted that the global biotech market, valued at $1.5 trillion in 2023, is projected to reach $4 trillion by 2030. This growth is driven by rising demand for improved healthcare and increased investment from both government and private sectors.  

“Within this context, Saudi Arabia’s directed R&D investments, amounting to $3.9 billion in 2021 and aims to become a global leader in innovation and R&D, with annual investment equivalent to 2.5 percent of GDP by 2040 which are set to catalyze the expansion of the sector,” the report said.   

It added: “This is expected to add $16 billion to the economy and create high-value jobs in science and technology, are set to catalyze the expansion of the sector, reinforcing its commitment to a knowledge-based economy.”  

In 2022, Saudi Arabia’s investment in research and development soared to $5.1 billion, marking a 32.7 percent increase from the previous year, according to the General Authority for Statistics.  

GASTAT’s report revealed that the government sector infused SR11.1 billion into R&D, constituting 58 percent of the nation’s total R&D budget.  

Patrick Linnenbank, a partner in the healthcare and life sciences practice for Middle East & South East Asia at Arthur D. Little, emphasized the synchrony between strategic investments and the burgeoning demand for enhanced healthcare services.   

“Our analysis indicates that strategic investments and initiatives are aligning with a growing demand for enhanced healthcare services and personalized medical treatment, which Saudi Arabia is well-positioned to fulfill,” Linnenbank said.   

The report underscored the pivotal role of the Kingdom’s biotech and genomics initiatives, exemplified by the Saudi Genome Project 2.0 and collaborative endeavors. These initiatives are instrumental in propelling precision medicine forward, leveraging AI and genomics for personalized healthcare solutions. 

Launched in 2018, the Saudi Genome Program utilizes cutting-edge genomic technologies to combat genetic diseases, advancing healthcare through improved diagnosis, treatment, and prevention.  

Ankita Gulati highlighted the transformative potential of AI and genomics in healthcare, stating: “The confluence of genomic data and AI in healthcare is at the core of next-generation medical treatment and may revolutionize healthcare. Saudi Arabia’s current trajectory in genomics research and development is a robust indicator of its potential to lead in this domain.”  

Integral to Saudi Arabia’s advancement in the biotech sphere are strategic collaborations with global pharmaceutical firms and the integration of research initiatives from key entities such as King Abdullah International Medical Research Center, King Abdullah University of Science and Technology, and King Abdulaziz City for Science and Technology.  

The report also applauded the progressive establishment of a regulatory framework, with new guidelines from the Saudi Food and Drug Authority and legislative oversight from the Saudi Research Development and Innovation Authority.  

While Saudi Arabia strides confidently toward leadership in the biotech landscape, the report acknowledged the necessity of further developing capabilities across the value chain.   

The Kingdom’s accelerator and incubator programs, including KAIMRC’s Medical Biotechnology Park, KAUST’s Taqadam initiative, and the Biotech Startup Program in Dammam Valley, are pivotal in nurturing a thriving biotech and genomics ecosystem. 


Saudi, US business ties set to reach new heights after high-level meeting

Updated 32 min 35 sec ago
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Saudi, US business ties set to reach new heights after high-level meeting

RIYADH: Trade relations between Saudi Arabia and the US are set to further prosper after a senior official from the Kingdom met with prominent business leaders.

Minister of Commerce Majid bin Abdullah Al-Qasabi held talks with representatives from the US Chamber of Commerce and prominent American companies in Washington, in which the robust economic connections between the two countries were emphasized. 

Speaking to attendees, Al-Qasabi, who also serves as chairman of the board of directors of the National Competitiveness Center, highlighted the progress made so far in the Kingdom’s journey to achieve its ambitious plan for 2030, as reported by the Saudi Press Agency.

Al-Qasabi noted the transformations within the Saudi economy have spurred the emergence of new sectors and promising business opportunities.


Saudi Arabia fastest-growing IT market in region, ICT spending to hit $37.5bn in 2024

Updated 24 April 2024
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Saudi Arabia fastest-growing IT market in region, ICT spending to hit $37.5bn in 2024

RIYADH: Saudi Arabia is the fastest-growing information technology market in the Middle East, Turkey, and the African region, with double-digit growth in technology spending, according to analysts.

Jyoti Lalchandani, regional managing director of research firm IDC, said wider information and communication technology market spending is expected to reach $37.5 billion by the end of 2024.

The comments were made during the ICT Indicators Forum, which was hosted by the Ministry of Communication and Information Technology alongside the Communications, Space, and Technology Commission in Riyadh on April 24. 

It was further noted that spending in this area across the Saudi government sector would exceed $752 million by the end of 2024 as innovative technologies become foundational to building an “experience economy.”

“AI, big data analytics, IoT, and cybersecurity spending is poised for tremendous growth and will account for almost one-third of overall IT spending in Saudi Arabia in 2024. Spending on AI in Saudi Arabia will surpass $720 million in 2024, reaching $1.9 billion by 2027 at a CAGR (compound annual growth rate) of 40 percent—half of that will be on interpretative AI,” Lalchandani said.

“We have seen Saudi Arabia emerge as a hub for the cloud,” he added, with spending on public cloud forecasted to surpass $2.4 billion in 2024 and reach $4.7 billion by 2027. 

Software-as-a-Service will account for more than 50 percent of the 2024 spending.

IDP further highlighted that spending on cybersecurity alone will surpass the $1 billion mark in 2024 and reach $1.6 billion in 2027.

“I do remember a few years ago, the cybersecurity market was estimated at about $500 million. Today, we’re talking about literally double that. We’re talking about $1 billion in the cybersecurity industry, and to hear it be called the fastest growing market in the region is really a testament to our beloved nation,” Salman Faqeeh, CEO of Cisco Saudi Arabia, said while speaking on a panel during the forum.