INTERVIEW: Sherpas do the heavy lifting at the U20

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Updated 04 October 2020
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INTERVIEW: Sherpas do the heavy lifting at the U20

  • Innovative financing and investments are on every city’s top priority list

Whether helping climbers reach challenging heights or drafting a troublesome passage of a controversial communique, the job of a sherpa is to do the heavy lifting for the main actors in an ambitious venture.

While Abdulmohsen AlGhannem did not have to carry any heavy physical burdens over the past year as sherpa for the U20 track of the G20, when the final communique was issued, it was the culmination of a long period of demanding work. You might almost imagine him planting a flag on top of the final document, like a climber at the summit of Everest.

“It was a year-long process for the Riyadh chairmanship,” he told Arab News. “We had to understand the ecosystem of the G20 as a whole and the U20 within that, and find out what our role was.”

The U20 specializes in urban issues, and it is a comparatively new element in the G20 set-up.

Whereas the G20 in its present form grew out of the global financial crisis of 2009 and the need for a coordinated response to that emergency, and has been performing the role of global economic and financial overseer ever since, the U20 was only established in Buenos Aires in 2018, and continued in Tokyo last year.

Focusing on the world’s great cities was a natural extension of the G20’s work. Around 55 percent of the world’s population lives in cities or big urban conurbations, and they generate nearly 80 percent of global gross domestic product.

At the same time, however, cities also typify many of the most intractable challenges that the world faces today. They consume a disproportionate amount of energy, they are more vulnerable than other areas to climate change issues, and they are the locations of some of the biggest economic inequalities on the planet with all the social problems that accompany that.

In 2020, cities have also been rocked by the COVID-19 pandemic, and have suffered big hits to traditional urban economic life through lockdowns and migration away from centers of infection.

That presented a new set of challenges for Riyadh, which was hosting the U20 under the chairmanship of Fahd Al-Rasheed, and for AlGhannem.

“When you look at it from the perspective of the U20, you see that local governments form the closest form of governance that touches residents’ lives on a daily basis,” AlGhannem said.

The U20 is just one track of a set of “engagement groups” beneath the main G20 apparatus. 

Others deal with specialist areas such as business, science, womens’ and youth issues. 

“Something that we were able to achieve this year that has not been done before in the U20 has been greater collaboration with other engagement groups, and all of these subjects are things that cities deal with on a daily basis. So we are able to understand their priorities as well as ours.


BIO

Born: Riyadh, 1988

Education: Graduate in urban planning, California State University

Career

  • Internship, City of Calabasas, Los Angeles
  • Urban Planner, Royal Commission for Riyadh City
  • U20 Sherpa to G20

“As a young engagement group, there was not a lot of structure to the U20. So part of our time was invested this year in creating some structure. This is something the cities really appreciate. We sit together and exchange technical viewpoints, our experiences, how we tackle our problems, at an experts’ level,” he said.

In addition to the 20 cities representing the G20 members, this year there were 22 other urban centers as invited observers, as well as “knowledge partners” such as the UN Habitat and World Bank and experts from  academia, urban planning and finance.

One of the innovations of the Riyadh U20 was the creation of task forces to coordinate the main thematic subject matter of the event. Even back in February, when the task forces were set up but before the pandemic forced an end to air travel, the task forces were designed to be virtual meetings.

“That was fortunate, but it also coincided with one of our main priorities in the U20, which was to use technology and innovation to share our experiences.”

The task forces were themed along three main lines: Working toward a circular carbon-neutral economy, the need for inclusive prosperity in cities, and the ambition to reach nature-based solutions in urban environments. 

The strategy was to localize the effort toward the UN’s Sustainable Development Goals through innovation and — especially important — to generate the financial resources to do so.

Carbon neutrality is of special interest to Saudi Arabia, where it chimes both with national energy policy and with the strategy of Riyadh, where AlGhannem was an urban planner before the U20 called him in as sherpa.

“Riyadh is planting 7.5 million trees — one per resident — to help with carbon sequestration, which is one of the elements of carbon neutrality. We are supportive of national government aims, of course, but also want to engage with private business and with citizens. The tree-planting program does that.”

He reported good progress in discussions with financial institutions backing the U20 aims, and said that projects such as tree-planting had important benefits for bigger sectors such as infrastructure investment and water projects in an arid city like Riyadh. 

“Innovative financing and investments are on every city’s top priority list. When it comes to money, we are definitely talking to the right people — the G20 leaders of the world’s biggest economies.”

So the job of sherpa, with liaison between multiple U20 participants, task forces and engagement groups, is a time-consuming and demanding one. But in the end it all boils down to the push to the summit after all that preparation is over — the final negotiations and compromises that enable all parties to agree to a communique encapsulating their positions, but which is also inclusive enough to accommodate often wide-ranging views.

It requires a large measure of empathy and diplomacy. 

“The communique for us is the final document that synthesizes everything that we put into it, and we have to have consensus. We have 42 cities, so this can be a difficult task.”

Preparation was crucial. All 42 cities were involved in the process since February, when they were presented with a skeleton of how the final communique should look, and they were kept updated throughout the process.

“Giving the cities clarity on the process makes them your partners in achieving success. That’s why I keep thanking them, because them understanding the process made the job a lot easier to get consensus among them.”

In the end, the U20 was able to claim a record level of agreement in its final communique, with 39 of the 42 cities signing up by the communique deadline.

“It’s a huge success,” AlGhannem said, adding that some cities were distracted this year by climate challenges and — above all ­— the pandemic’s impact. “They wanted to be vigilant about the rate of spread of COVID and they wanted to keep it under control, which is very understandable.”

Now that he has successfully led the U20 to the summit, AlGhannem will resume his role as an urban planner with the Royal Commission — “my dream job” — where there is a very important project to deliver. 

He has been involved in the transit section of the department for urban and strategic planning, which is responsible for the long-awaited opening of the Riyadh Metro, regarded as a crucial element of the city’s ambitious plans to double its population over the next 10 years.

“Having this public transportation will give us the opportunity to increase density around the stations, diversify land use and transform the city from being car to transit-oriented. It’s a big task.”

He will also get involved in the “troika” arrangements for the next G20, where previous G20 presidencies (Japan) work with the current one (Saudi Arabia) to assist the future host: Italy in 2021.

“We will be very supportive. We have invested a lot of time, money, sleepless nights and gallons of coffee to work on this U20, so we will not stop that. We will continue the momentum and support that.”


Saudi Arabia’s AI adoption ignites technological advancement and economic growth

Updated 19 April 2024
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Saudi Arabia’s AI adoption ignites technological advancement and economic growth

  • Adoption of AI will help foster a knowledge-based economy and equip Saudi youth with skills for the digital age
  • Key initiatives, include the National Strategy for Data and AI, aim to establish Saudi Arabia as a global AI leader by 2030

RIYADH: As artificial intelligence gains global attention and becomes a buzzword, Saudi Arabia is positioned for accelerated adoption to enhance efficiency across its industries.

Over the years, AI has evolved into a transformative technology revolutionizing numerous industries and domains. Its development and adoption across sectors have spurred significant advancements, already reshaping how people live and work globally.

According to a recent report by the professional services firm PwC, the projected economic impact of AI in the Middle East by 2030 is $320 billion, with an estimated $135.2 billion attributed to Saudi Arabia.

The report also highlights an annual growth rate in AI contribution ranging between 20 percent and 34 percent across the region, with the UAE experiencing the fastest growth, followed by Saudi Arabia.

“Such growth and demand for AI demonstrated that the impact on industries can be substantial and wide-ranging both in Saudi Arabia and the wider region,” said Slava Bogdan, CEO & co-founder at Flowwow, to Arab News.

Flowwow, a global gifting marketplace, simplifies gift-giving and connects local brands with customers. It hosts over 14,000 local brands from 1,000 cities and operates in over 30 countries, including the UAE, Spain, the UK, and Brazil.

“Whether it’s hospitality, manufacturing, telecommunication, or business technologies, where Flowwow sits, I could say that AI solutions, firstly, could automate repetitive tasks, allowing employees to focus on more strategic and creative work, especially in data analysis, customer service, and marketing,” Bogdan said.

The CEO further explained how the firm’s marketers frequently utilize AI to target audiences, enhance creatives, or conduct competitive analysis, particularly in global markets like the Middle East and North Africa. This reduces decision-making time and allows for more strategic tasks that necessitate a tailored approach.

“Moreover, AI algorithms can analyze large amounts of data to identify patterns and trends, helping businesses make more informed decisions,” Bogdan explained.

“This attribute can lead to better forecasting, resource allocation, and risk management, especially in the financial sector, having had 25 percent of all regional AI investments,” he added.

Speaking to Arab News, Brahim Laaidi, partner at Bain & Co., emphasized that AI adoption in sectors like energy and healthcare aids “the Kingdom’s economic diversification and fosters a knowledge-based economy, enhancing efficiency and driving growth.”

Moreover, AI is recognized for enhancing customer experience and reducing costs for firms in various ways.

DID YOU KNOW?

• Saudi Arabia was one of the first nations to utilize data and artificial intelligence technologies to achieve its Vision 2030 goals.

• There are five prominent types of AI: machine learning, natural language processing, computer vision, speech recognition and robots.

• The Saudi Data and AI Authority has created AI ethics principles in accordance with the Kingdom’s commitment to human rights.

• SDAIA estimates SR412.5 billion ($109.96 billion) in global spending on AI by 2024 end.

“AI chatbots and virtual assistants provide 24/7 customer support, reducing costs. Multiple Saudi firms and banks use chatbots for customer service,” highlighted Laaidi.

He also illustrated how AI analyzes customer behavior to create personalized experiences, citing examples like Netflix and Spotify, which utilize AI to tailor content based on user preferences and listening habits.

Laaidi also highlighted how “AI facilitates segmentation based on behavior and profitability for targeted marketing. Coca-Cola utilizes AI for consumer segmentation.”

“In a nutshell, for most enterprises, the focus remains on leveraging narrow or vertical AI solutions to enhance specific business processes, improve customer experiences, or optimize operations,” he added.

According to Jad Haddad, head of Digital IMEA at management consulting firm Oliver Wyman, AI essentially democratizes access to intelligence, making it cheaper and more widely available.

This can generate significant efficiencies by augmenting employee capabilities, enabling them to complete tasks faster, and automating certain processes without human intervention.

Oliver Wyman estimates that up to 35 percent of tasks globally may be augmented or automated by AI in the next three years.

“In Saudi Arabia, considering the current economic structure, Oliver Wyman estimates that up to 17 percent of tasks may be affected within that time frame,” Haddad told Arab News.

AI projects and employment

It is evident that the Kingdom has been significantly investing in AI in recent years.

Key initiatives, according to Laaidi, include the National Strategy for Data and AI, aiming to establish Saudi Arabia as a global AI leader by 2030. Additionally, Neom, a planned smart city, is poised to leverage AI in urban planning and environmental management.

“The Saudi Data and Artificial Intelligence Authority was established in 2020 to regulate AI development, and Tonomous collaborates with global tech leaders to enhance the city’s projects,” he added.

Laaidi continued by stating that AI and Robotics Centers, formed through partnerships with universities and international entities, are advancing AI in the Kingdom. From a technology industry perspective, it offers diverse applications and significant benefits.

According to Cristina Carranza, global head of business development at GGTech Entertainment, AI stands as a powerful tool with vast potential to enhance operational efficiency across various domains.

“We use AI selectively, focusing on specific areas where it can augment human skills and improve processes,” Carranza told Arab News.

She gives examples of how AI algorithms are utilized to analyze player data and preferences, enabling them to tailor game experiences and enhance player engagement. “In addition, AI-driven predictive analytics help us anticipate market trends and make informed decisions.”

However, Carranza emphasized the importance of acknowledging that while AI is embraced as a tool for progress, there is a recognition of the necessity of human oversight and control.

“We believe in a symbiotic relationship between humans and AI, where the technology enhances our capabilities but is always subject to human direction and control,” she added,

New dimensions

From GGTech Entertainment’s perspective, AI opens up exciting new dimensions in gaming and entertainment.

Carranza revealed that one significant area involves the optimization of game design processes, where AI algorithms analyze player feedback and behavior data to inform the creation of more engaging and immersive gaming experiences.

“Additionally, AI-powered tools enhance player interaction through personalized recommendations and real-time assistance, fostering deeper engagement and loyalty,” she explained.

The global head further addressed how AI-driven analytics offer valuable insights into player behavior and market trends, empowering GGTech to make data-driven decisions and maintain a competitive edge in the industry.

Bridging skill gaps

The Kingdom’s journey to become an AI leader involves challenges encompassing ethical and legal aspects, data availability and quality, as well as skill gaps, infrastructure requirements, public trust, and the need for international collaborations.

“To navigate these dilemmas, the SDAIA and the National Data Management Office have been established to construct ethical guidelines and improve data governance,” Laaidi explained.

Similarly, the National Cybersecurity Authority continues to safeguard Saudi Arabia's digital infrastructure, including AI systems.

Laaidi emphasized Saudi Arabia’s prioritization of STEM education and training to bridge skill gaps, citing initiatives like the Prince Mohammed bin Salman College of Cyber Security aimed at fostering local talent in AI-related fields.

He highlighted the importance of focusing on STEM disciplines for developing a workforce equipped with the necessary skills for an AI-driven future.

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“Substantial investments are being made in infrastructure, with emphasis on high-performance computing and cloud computing capabilities to support AI development and deployment. Building public trust is also a key venture for the Kingdom,” the partner stressed.

In addition, the Kingdom seeks international collaborations with leading AI research entities worldwide to expedite AI capabilities. “By addressing these challenges strategically, Saudi Arabia aims to create a conducive environment for AI development and adoption,” he emphasized.

From a technological perspective, the adoption of AI can present challenges in navigating ethical considerations and ensuring human control.

“At GGTech, we recognize the importance of maintaining human oversight and ethical standards while leveraging AI technologies. To address this challenge, we prioritize transparency and accountability in our AI algorithms and processes, ensuring they are aligned with our values and ethical guidelines,” Carranza described.

She further added that they invest in ongoing training and education for team members to enhance their understanding of AI and its implications, enabling them to make informed decisions and mitigate potential risks.

Reskilling Saudi workforce    

Undoubtedly, marketers and creative leaders should prepare for the changes in their professional field resulting from AI adoption.

Bogdan explained that one of the crucial skills is the ability to ask AI the right questions and write clear prompts. He emphasized that it is necessary to understand, at least at a basic level, how AI algorithms work.

“At Flowwow, we acquaint employees with the different instruments to make AI a helpful assistant that allows us to analyze competitors’ websites, fact-check and edit texts, test tasks, and answers,” he continued.

The CEO highlighted that as the Kingdom invests resources to integrate AI into every sector, it creates more opportunities for entrepreneurs to establish their businesses and startups equipped with AI tools.

“Hence, apps and services developed with AI solutions will be on the edge. In this case, product managers and programmers should gain a thorough understanding of machine learning to create up-to-date apps,” Bogdan highlighted.

The CEO stressed that it will mostly be up to companies to invest in continuous learning and upskilling through educational short courses for their workers. “This investment is crucial to ensure that the workforce remains competitive and competent in leveraging advancements in AI effectively.”

Saudi Vision 2030  

AI is a driving force behind Saudi Arabia’s Vision 2030, fueling economic diversification, smart cities, and public service transformation.

According to Laaidi, “AI boosts innovation across non-oil sectors, enables intelligent urban planning in projects like NEOM, and promotes Industry 4.0 through automation and predictive maintenance.”

“AI also improves government services via chatbots, automation, and analytics. In healthcare, AI enhances medical imaging, drug discovery, and personalized medicine,” he highlighted.

On top of that, Laaidi emphasized how AI educational tools prepare the workforce and optimize resource allocation, while support for clean energy promotes sustainability.

“Vision 2030 powered by AI seamlessly connects economic domains, accelerating progress and innovation across the Kingdom,” he affirmed.

On another note, GGTech Entertainment's use of AI aligns with the goals of Saudi Vision 2030 by driving innovation, promoting economic diversification, and empowering Saudi youth with advanced skills and capabilities, according to the firm's global head.

“One way AI contributes to this vision is by enhancing gaming experiences and promoting the Kingdom as a global hub for entertainment and technology,” said Carranza.

By utilizing AI-powered tools for game design, player interaction, and analytics, GGTech Entertainment is delivering cutting-edge gaming experiences that showcase Saudi Arabia’s technological prowess and creativity to a global audience, she emphasized.

“In addition, the use of AI creates opportunities for job creation and economic growth in the Kingdom. As GGTech expands its AI capabilities, it is investing in the development of a skilled workforce with expertise in AI technologies and data analytics,” the company’s global head said.

She concluded by highlighting how this not only aligns with the goals of Saudi Vision 2030 to foster a knowledge-based economy but also equips Saudi youth with the skills they need to thrive in the digital age.


ACWA Power, IRENA join hands to accelerate global renewable energy transition

Updated 18 April 2024
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ACWA Power, IRENA join hands to accelerate global renewable energy transition

RIYADH: In a bid to add impetus to the adoption of clean energy sources worldwide, Saudi utility firm ACWA Power has signed a deal with the International Renewable Energy Agency, said a press release issued on Thursday.

The Saudi-listed firm said that the partnership aligns with its mission to provide sustainable energy solutions and seeks to accelerate the adoption and sustainable use of renewable energy across the globe. 

ACWA Power will work closely with IRENA to share crucial insights on infrastructure investment in renewable energy, green hydrogen advancement, solar energy, smart grids, and the intersection of energy and water, the press release said. 

The Saudi-listed company also announced its participation in various IRENA initiatives, such as Green Hydrogen, Collaborative Frameworks, Project Facilitation, the Alliance for Industry Decarbonization, the Utilities for Net-Zero Alliance, and the Coalition for Action.

As per the deal, ACWA Power and IRENA will investigate avenues to mobilize finance and investment for renewable energy projects, while also supporting infrastructure for the development, storage, distribution, transmission, and consumption of renewables. 

Moreover, collaborative workshops and seminars will be arranged to exchange best practices, enhance skills, and promote awareness of the energy transition among youth, professionals, and the public using IRENA’s platforms and programs. 

ACWA Power CEO Marco Arcelli said the partnership with IRENA marks a significant milestone in his company’s journey toward a sustainable energy future.

“By combining our strengths and resources, we are prepared to drive meaningful change and accelerate the transition to renewable energy on a global scale,” he said.

The CEO added that through collaborative partnerships and innovative solutions, ACWA Power remains committed to advancing the widespread adoption and sustainable use of renewable energy, shaping a brighter and more sustainable future for generations to come.

IRENA Director General Francesco La Camera commented: “We have less than a decade left to secure a fighting chance for a 1.5°C world. Accelerating the renewable-based energy transition needs industry leaders and this deal between IRENA and ACWA Power stands for the growing commitment of global industry to act on decarbonization.”

He added: “We need to act together to accelerate the sustainable use of renewables and green hydrogen across the globe.”


Closing Bell: TASI ends the week in green with trading turnover at $2.18bn

Updated 18 April 2024
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Closing Bell: TASI ends the week in green with trading turnover at $2.18bn

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 36.37 points, or 0.29 percent, to close at 12,502.35.

The total trading turnover of the benchmark index was SR8.19 billion ($2.18 billion) as 130 stocks advanced, while 90 retreated. 

The MSCI Tadawul Index also increased by 5.98 points, or 0.38 percent, to close at 1,575.11.

The Kingdom’s parallel market, Nomu, followed suit and gained 305.77 points, or 1.16 percent, to close at 26,418.75. This comes as 33 stocks advanced, while as many as 27 retreated.

The best-performing stock on the main index was Saudi Arabian Amiantit Co., as its share price rose by 7.69 percent to SR30.80.

Allianz Saudi Fransi Cooperative Insurance Co. also performed well as its share price saw a 6.79 percent increase to close at SR20.16.

This comes as Abu Dhabi National Insurance Co. completed a strategic acquisition of a 51 percent stake in Allianz, according to the Emirates News Agency, WAM.

ADNIC Chairman Mohamed Al- Nahyan told WAM: “The connection between the UAE and Saudi Arabia is deep, mutually beneficial and ever-growing. At ADNIC, we see Saudi Arabia as a high-potential market which perfectly aligns with our overall growth strategy, and we are looking forward to unlocking new possibilities for growth and success.”

Other top performers include United Cooperative Assurance Co. and Saudi Pharmaceutical Industries and Medical Appliances Corp. whose share prices soared by 5.68 percent and 5.51 percent, to stand at SR11.16 and SR14.16 respectively.

The worst performer was Alkhaleej Training and Education Co., whose share price dropped by 5.27 percent to SR33.25.

On the announcements front, Saudi mining giant and Public Investment Fund subsidiary, Saudi Arabian Mining Co., known as Ma’aden, announced the launch of single stock options in a statement on Tadawul. 

SSOs will enable local and international investors to effectively hedge and manage portfolio risks as well as diversify products available for trading in the market. 


Saudi minister calls for ‘decisive financial policies’ to counter global economic uncertainties

Updated 18 April 2024
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Saudi minister calls for ‘decisive financial policies’ to counter global economic uncertainties

RIYADH: Saudi Arabia’s finance minister on Thursday stressed the need for “decisive financial policies” across the world to navigate through uncertain economic conditions.

Speaking during the Spring Meetings 2024 of the IMF held in Washington, D.C, Mohammed Al-Jadaan noted that such a decisive approach would bolster resilience and sustainability amid the ongoing uncertainties.

He was attending a meeting of finance ministers and governors of the Middle East, North Africa, Afghanistan and Pakistan region with IMF Managing Director Kristalina Georgieva.

“I also participated in the Global Sovereign Debt Roundtable, where I highlighted the importance of enhancing Comparability of Treatment by establishing a clear and fair framework that ensures equitable treatment among all creditors,” Al-Jadaan said in a post on X.

Additionally, the minister participated in the second G20 finance ministers and central bank governors’ meeting held under the Brazilian presidency in Sao Paulo. He emphasized that effective climate action required a holistic approach.

He said that can be achieved “by integrating diverse sectors acknowledging the diversity of solutions to address climate challenges, including using innovative technologies to manage emissions.”

Al-Jadaan also met with Jose Vinals, chairman of Standard Chartered Bank, to discuss the regional and global economic outlook.

He also met with Spanish Minister of Economy, Trade, and Business, Carlos Cuerpo to discuss ways to enhance relations between the two countries.

Moreover, Al-Jadaan held talks with Jean Lemierre, chairman of Bank BNP Paribas, the global head of Official Institutions Coverage, Laurent Leveque, and the head of Debt Capital Markets, Alexis Taffin.

They discussed progress made in Saudi Arabia, as well as issues related to attracting investment and alternative financing.


Magrabi opens new complex in Makkah

Updated 18 April 2024
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Magrabi opens new complex in Makkah

RIYADH: With a new branch in Makkah, Magrabi Hospitals and Centers are expanding to more Saudi cities to meet the growing demand for specialized ophthalmological and dentistry care.

Minister of Health Fahad Al-Jalajel inaugurated the medical complex and one-day surgery center in the holy city, accompanied by Magrabi Hospitals and Centers CEO Mutasim Alireza, the Group’s Deputy CEO and Cheif Operating Officer Abdulrahman Barzangi, and several officials and dignitaries.

Al-Jalajel underscored that the opening reflects the Kingdom’s commitment to enhancing the quality of its healthcare services and transitioning toward a more comprehensive and integrated medical system.

He further stated that this initiative is a vital component of the Health Transformation Program, a foundational aspect of Saudi Vision 2030, which has achieved significant milestones and advancements in the medical sector under the leadership of Crown Prince Mohammed bin Salman.

Following the official inauguration, the minister toured the complex’s facilities, noting its significance as a notable project and a valuable contribution to the Kingdom.

Alireza said: “This specialized medical complex underscores our commitment to being at the forefront of healthcare for ophthalmology and dental services and continuing our mission to offer specialized medical services that meet community needs with the utmost quality and safety.” 

In March, Magrabi Ophthalmology and Dentistry Hospital Dammam officially opened its doors in Al-Shaala, marking an achievement for medical care in Saudi Arabia.

The Magrabi Dammam health facility is the largest specialized center in the region and provides sub-specialized services, meeting the highest quality standards and leveraging the latest global technologies.