M&As poised to continue growth in 2021 as optimism returns to Saudi market: JP Morgan

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Updated 27 December 2020
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M&As poised to continue growth in 2021 as optimism returns to Saudi market: JP Morgan

Despite the COVID-19 crisis creating business uncertainty across the Middle East and North Africa (MENA) region, including Saudi Arabia, 2020 has still been an eventful year for mergers & acquisitions (M&As) market, according to Bader Alamoudi, senior country officer for JP Morgan – Saudi Arabia.

In 2020, M&A activity was driven by companies looking to streamline costs and boost efficiency and optimization, particularly during periods of prolonged uncertainty, Alamoudi told Argaam in an interview.

“As in previous years, the financial sector has been one of the most active in terms of M&A activity in the region during 2020. The consolidation theme has created a ripple effect on other sectors, including energy, real estate etc., where we have started to witness heightened activity. I believe such activity will continue next year as well,” he said.

Alamoudi believes high-quality assets that are less cyclical in nature, such as infrastructure-type, will continue to attract interest from local and international investors.

“Several M&A discussions during the pre-summer period were put on-hold, however, the momentum has considerably picked up and a lot of new opportunities are currently being explored,” Alamoudi noted.

In 2020, issuances in regional debt capital market (DCM) were more agile, with the respective governments doing an outstanding job in laying the ground for other government related entities (GREs) and corporate institutions entering the market, he pointed out.

Saudi Arabia’s Public Investment Fund (PIF) in May said it bought stakes in companies including BP Plc, Boeing Co., Facebook Inc. and Walt Disney Co. during the pandemic. It also invested in India’s Reliance Retail Ventures Ltd. and Jio Platforms, and three sector-specific exchange traded funds (ETFs).

“Regional sovereign issuers were the first movers to tap in DCM during the pandemic, which made it easier for others to follow. The institutions took advantage of ample liquidity within the overall system,” Alamoudi said.

Plans for 2021

In Saudi Arabia, the US investment bank advised National Commercial Bank (NCB) on its $15.6 billion acquisition of Samba Financial Group. Previously, the lender also advised on the mammoth initial public offering (IPO) of oil giant Saudi Aramco.

JP Morgan will continue to expand its presence in the Kingdom by introducing new products and hiring more people, Alamoudi said. “Today, we operate in all lines of business in the Kingdom, with 85 percent Saudization rate and 33 percent female employees,” he added.

“We continued our hiring spree in Saudi Arabia during the pandemic as well,” Alamoudi further stated.

The stimulus packages announced by the Saudi Central Bank (SAMA) proved to be an immense source of cash flow, as it helped ease up the payment burden on firms. Alamoudi expects the improvement in oil prices to re-kindle retail confidence and fuel bigger investment banking activities next year.

“2021 is going to be a very interesting year with lots happening across all lines of business. Consolidation in many sectors will continue, with a strong pipeline in DCM and equity capital market (ECM),” he concluded.

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AI models could help to save lives, says experts at WGS 

Updated 11 sec ago
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AI models could help to save lives, says experts at WGS 

  • With the rise of wearable health technology such as the Whoop and the Oura ring, people now have access to their own health data

DUBAI: AI language learning models could soon be used to give reliable medical advice, Director of the Stanford Center for Digital Health Dr. Eleni Linos told the World Governments Summit on Thursday.

“We will get to a point where the accuracy of these models results in people trusting them and using them even more,” she said.

Linos said that the models were currently “good enough” at offering quick guidance on how to react in situations and said they could be very helpful to parents, for example, if their child woke up in the middle of the night and needed immediate medical attention.

“I believe language learning models are equipped to answer these questions. They are definitely not perfect, but they are good enough. It can offer quick guidance into how we can react or respond to situations,” she said.

Linos said that AI language learning models could be crucial in saving lives and making quick decisions, not only in rural areas but in urban societies as well.

“Even in urban areas and for people with health insurance, getting access to doctors can take days or even months. Being able to get an answer within seconds is important, even if it’s not perfect and there is a risk that it’s not the same level as professional advice, it’s still something,” she said.

Co-founder and CEO of CREATE Medicines Daniel Getts said that data was a key element in monitoring the success of health technology.

CREATE Medicines is a clinical-stage biotechnology company based in Massachusetts that focuses on transforming how diseases are treated.

“The key element to success in monitoring health through this tech is data. Baseline data sets are going to be essential on how we apply tech ideas in relation to health,” Getts said.

He said that his company was approaching drug manufacturing and preventive medicine from a one-size-fits-all approach.

“We focus on making drugs that everyone can take, making a drug for one human doesn’t help humanity. We need drugs that are effective to every individual.”

With the rise of wearable health technology such as the Whoop and the Oura ring, people now have access to their own health data.

Linos said that these technologies monitored heart rate, sleep quality and even the food people consumed, and were changing the way people made health-conscious decisions.

“If you can imagine a world where you can call your doctor instantly, where you have the wisdom of traditional medicine passed on from generations, but that is somehow incorporated into available, tech-driven LLM that will give you not just instant, rigorous scientific advice, but that it’s informed by generations of wisdom and is available in moments … I think that would be an incredible vision for the future, where everyone in the world, regardless of where they live, what language they speak, can get the highest standard of medical advice, medical care, informed by science but also traditional wisdom at their fingertips,” she said.

Getts echoed this idea and said that the need to call a doctor was going to decrease in the future.

“Your need to call a doctor is going to become diminished over time because we’re going to empower people with education and access to therapies that are easier to administer and we can just understand how they work,” he said.