Global IT services company Crayon to invest in Saudi Arabia’s AI sector

Short Url
Updated 25 September 2022

Global IT services company Crayon to invest in Saudi Arabia’s AI sector

RIYADH: Norway-based Global IT services company Crayon is fully invested in the future of Saudi Arabia’s artificial intelligence sector as its CEO forecasts the industry will contribute to 12.4 percent of the country’s gross domestic product by 2030.

During the second Global AI Summit held in Riyadh, Ziad Rizk, the CEO of Crayon Middle East and Africa, told Arab News that the Kingdom is an ideal location for the company to incubate its operations to meet the demand of the entire MEA region.

“Around $360 billion will be spent on AI across the Middle East and Africa. But specifically, when you look at the Kingdom, we believe that AI will represent around 12.4 percent of the total GDP by 2030,” Rizk told Arab News.

“Accordingly, this is where we are investing ahead of the curve, trying to lead and to support the Kingdom’s journey in that direction,” he added.

HIGHLIGHTS

• CEO of the company forecasts the industry will contribute to 12.4 percent of the country’s gross domestic product by 2030.

• The Kingdom is an ideal location for the company to incubate its operations to meet the demand of the entire MEA region, he says.

• Crayon also announced the opening of its Regional Digital Transformation office in Riyadh during the event.

• The company, which helps customers understand software assets and utilize and reduce software costs, already has over 4,500 customers across the MEA region.

Rizk explained that the company will support the sector through multiple areas by leveraging its global expertise in the Kingdom, as well as establishing a local talent pool in collaboration with the government and universities.

“The third pillar is to work with the startup community and the scale-up companies that are really on the cusp of growing exponentially, and helping them branch out beyond the Kingdom, across the Middle East and Africa region,” he added. Crayon also announced the opening of its Regional Digital Transformation office in Riyadh during the event.

Founded in 2002, the company, which helps customers understand software assets and utilize and reduce software costs, already has over 4,500 customers across the MEA region.

Rizk said that Crayon’s existing customer base in Saudi Arabia consists of large businesses and entities ranging across sectors like oil, electricity and aviation.




Ziad Rizk, the CEO of Crayon Middle East and Africa. (AN Photo)

Lauding the Saudi market, Rizk stated that their customers in the Kingdom were high in expertise as well as agile in pursuing their ambitions. Rizk believes that startup companies will play a huge role in boosting the Kingdom’s AI sector and the company is planning to support them.

“The startup community is really good at identifying a key technical problem, and then putting a lot of focus on solving it, but these companies face challenges on the business side, and this is where we engage with them,” he said.

Crayon was awarded the global partner of Data & AI in 2019 by Microsoft as well as Partner of the Year for Saudi Arabia in 2021.

The company has also seen 180 percent growth year over year and Rizk is expecting this to continue for at least three years.


Gasoline price to shape EV demand in Kingdom: KAPSARC

Updated 01 October 2022

Gasoline price to shape EV demand in Kingdom: KAPSARC

  • KSA has implemented energy price reforms to unlock economic and environmental benefits for the country

RIYADH: Growing gasoline prices will play a significant role in increasing the demand for electric vehicles in the Kingdom, according to Anwar Gasim, a King Abdullah Petroleum Studies and Research Center researcher.

“The higher the domestic gasoline price, the more a consumer may be incentivized to switch to an electric vehicle,” he told Arab News.

According to Gasim, gasoline prices in the Kingdom seven years ago were a quarter of today’s prices.

“If you look at the 91-octane gasoline, it was SR0.45 ($0.12) per liter. Today, it’s SR2.18,” Gasim said in an exclusive interview with Arab News.

Since 2016, the Kingdom has implemented energy price reforms to unlock economic and environmental benefits for the country.

“Since gasoline prices ended up getting linked with the international price, the government had to put a cap on them when international prices went up very high last year,” said Gasim.

It means there is a limit that domestic gasoline prices will not surpass, no matter how high energy prices may hike internationally.

“I think it was becoming too high for people here, and then the government decided to put a cap,” he said.

According to Gasim, raising domestic energy prices can contribute to the Kingdom’s climate goals.

Saudi Arabia aims to reduce emissions and increase the share of renewables to 50 percent by 2030.

“Higher energy prices can incentivize more efficient behavior, more energy conservation, and therefore it can help save energy and reduce emissions,” he added.

KAPSARC was a part of the regulatory team led by the Ministry of Energy, which on Aug. 22 issued the completion of all legislative and technical aspects to regulate the EV charging market.

These stations will more likely charge the vehicles using the national grid. Still, there are possibilities that off-grid stations will be a requirement.

Some neighborhood distribution networks can no longer accommodate any additional load. They have reached the peak of the transformer capacity.

The only option is using off-grid solutions; renewable sources like solar and hydrogen can supply these off-grids.

Electromin, a wholly owned e-mobility turnkey solutions provider under Petromin, in May announced the rollout of electric vehicle charging points across the Kingdom.

In an earlier interview with Arab News, Kalyana Sivagnanam, the group CEO of Petromin, said that the network includes 100 locations across the Kingdom powered by a customer-centric mobile application.

Sivagnanam said that the company would set up most of its charging stations in Riyadh, Jeddah and Dammam and eventually branch out across the country.

Electromin’s charging network will offer a complete spectrum of services from AC chargers to DC fast and ultrafast chargers, catering to all customer segments.

The imports of EV charging equipment were permitted in the Kingdom in 2020.

As part of the Kingdom’s sustainability strategy, the Royal Commission of Riyadh launched an initiative last year to ensure that 30 percent of all vehicles in the capital would be powered by electricity by 2030.

Related


Saudia to bring voice recognition technology, augmented reality on board: VP

Updated 30 September 2022

Saudia to bring voice recognition technology, augmented reality on board: VP

RIYADH: Saudia, Saudi Arabia’s national carrier, is aiming to integrate voice recognition technology and augmented reality to its services, the company announced during the second edition of the Global AI Summit held in Riyadh.

Saudia has signed an agreement, aimed at boosting artificial intelligence in the flight sector, with the Saudi Data and Artificial Intelligence Authority and the Saudi Company for Artificial Intelligence. Speaking to Arab News on the sidelines of the summit, Dr. Khaled Alhazmi, vice president of IT support and operations at Saudia, said that the agreement is the first step in introducing AI products to the airline’s services.

Alhazmi explained that the company is currently exploring voice recognition technology through one of SDAIA’s products, an app called SauTech.

“It is an amazing app; it currently gives accurate results for the recognition of the dialects of the Arabic language. And right now, we are trying to explore opportunities and use cases, to start implementing it in our services,” he said.

The company is also planning to adopt Internet of Things technology as well as augmented reality to ensure that they are first movers to implement AI into their services.

“Our strategic direction is to build an ecosystem of partners who would enable us to digitize our services to our customers. We are aiming to deliver a first-class experience to our customers,” he added.

Alhazmi believes that the digitalization factor currently in use at the airline such as downloading tickets to personal devices can be greatly expanded on, and that there are huge opportunities to integrate technology into the sector.

“We are digitizing everything under a program, which is adapting the digital first. Right now we believe that we need to put in use all the data science, all the technologies nowadays, and put them into the hands of the customer,” he said. The company wants to improve its self-service options by providing a personalized platform that will enable users to customize their journey according to their needs.

“That’s actually the main goal because we understand right now that we have a new generation of people who are more interested in technology, they are using technology every day,” he added.

Saudia has also recently partnered with agritech company Red Sea Farms to provide sustainable and high-quality meals for its customers.

“We can see that the adoption of technology in Saudi Arabia in general is getting more mature than other countries,” Alhazmi concluded.

Related


China launches $28bn loan facility to support manufacturers

Updated 28 September 2022

China launches $28bn loan facility to support manufacturers

  • Yuan ends at weakest since global financial crisis, hits record low

BEIJING, SHANGHAI: China’s central bank said on Wednesday it has set up a relending facility worth more than 200 billion yuan ($27.59 billion) to help manufacturers and other companies upgrade their equipment, as part of a push to revive flagging demand.

The People’s Bank of China said in a statement that it will provide low-cost funds to financial institutions and guide them to lend to firms to support such upgrades. The loans will be issued on a monthly basis, and the interest rate for qualified firms will be no higher than 3.2 percent from Sept. 1, 2022 to Dec. 31, 2022, the central bank added. China’s one-year loan prime rate is currently 3.65 percent.

The lending facility will support sectors including education, health, culture, tourism and sports, electric vehicle chargers, urban underground facilities, new infrastructure and industrial digital transformation, the central bank said.

The PBoC has increasingly relied on structural, or targeted policy tools, including low-cost loans, to support the slowing economy, as it faces limited room to cut interest rates for fear of fueling capital flight and inflation.

The PBoC has rolled out relending facilities to support the transport, logistics and storage sectors that have been hit hard by COVID-19, as well as carbon emission reduction, tech innovation and elderly care.

On Sept. 14, China’s Cabinet announced steps to support equipment upgrades by companies, extending a raft of measures to bolster the COVID-ravaged economy.

Onshore yuan

China’s onshore yuan extended losses on Wednesday to end the domestic session at its lowest level against the dollar since the global financial crisis of 2008, while the offshore yuan hit a record low, pressured by expectations of more US rate hikes.

Currency traders said the yuan was reacting to broad greenback strength in global markets as the dollar hit a fresh two-decade peak against a basket of currencies, buoyed by safe-haven demand and a hawkish Federal Reserve.

In onshore markets, the yuan finished the domestic trading session at 7.2458 per dollar, its weakest such close since January 2008 and down 658 pips or 0.91 percent from previous late night close of 7.18.

The offshore yuan followed suit and weakened 1.15 percent on the day to trade at 7.2635 around 0830 GMT.

Fuel export

China may tweak a proposed sharp increase in refined fuel export quotas for this year by extending the plan into next year, as it weighs the benefits to the economy of higher exports against low domestic stocks and operational challenges, four sources told Reuters.

However, the four sources with direct knowledge of the matter — and three others — said the government was still reviewing the matter.

The market has been widely expecting China to release a fifth batch of fuel export quota of up to 15 million tons for the rest of the year, which would be its largest so far in 2022 and lift China’s sagging exports.

The proposal from refiners’ planning departments, following a government call to boost trade, has led some refiners to ready an increase in output to take advantage of the quota.


Third Jordan-Gulf Economic Forum begins in Amman

Updated 28 September 2022

Third Jordan-Gulf Economic Forum begins in Amman

  • Jordanian minister said value of trade between his country and Gulf Cooperation Council member states reached $6.6 billion in 2021

AMMAN: The third session of the Jordan-Gulf Cooperation Council Economic Forum began in Amman on Tuesday. It brings together officials and business representatives from Jordan and GCC member states to discuss opportunities for the expansion and development of economic relations, the Jordan News Agency reported.

The forum, which is taking place under the title New Horizons for Economic and Investment Cooperation, aims to advance the strategic objectives and interests of all participating nations, according to the Jordanian Ministry of Industry, Trade and Supply.

The delegates at the two-day event include businessmen, investors, the heads of trade federations and chambers of commerce, and representatives of Gulf and Jordanian government stakeholders, according to the ministry.

In his opening remarks, Youssef Shamali, the Jordanian minister of industry, trade and supply, said that the value of trade between his country and GCC member nations reached $6.6 billion in 2021. Jordanian exports to the GCC were worth $1.7 billion of that total, while Jordan’s imports accounted for $4.9 billion.

The minister added that Gulf nations are responsible for the most significant foreign investments in Jordan, and capital from the region has benefited the nation’s economy and created jobs for the Jordanian people.

He added that if Arab nations were to unite to form a powerful economic bloc, it would allow them to boost exports, increase production, create new job opportunities for young people, and achieve greater integration into the global economy.
 


ECB eyes blockchain for settling bank transactions, says official

Updated 26 September 2022

ECB eyes blockchain for settling bank transactions, says official

  • The ECB is among a number of central banks around the world working on digital versions of their currency in response to the popularity of digital tokens

FRANKFURT: The European Central Bank is studying ways of settling transactions between banks on a blockchain in a bid to keep control of money even if lenders switch to distributed ledgers, ECB board member Fabio Panetta said on Monday.

The ECB is among a number of central banks around the world working on digital versions of their currency in response to the popularity of digital tokens such as Bitcoin and the blockchain technology that powers them.

This distributed ledger technology is predicated on market participants verifying transactions and keeping a copy of them rather than relying on a trusted party, such as a central bank.

On top of a digital euro for consumers, the ECB is looking at how it could let banks settle wholesale transactions between them on a distributed ledger, rather than the central bank’s own.

“Despite the uncertainties surrounding DLT’s potential, we want to be prepared for a scenario where market players adopt DLT for wholesale payments and securities settlement,” Panetta said. 

We want to be prepared for a scenario where market players adopt DLT for wholesale payments and securities settlement.

Fabio Panetta, ECB official

He added letting banks settle among themselves or use stablecoins, which are crypto tokens pegged to a conventional currency, would result in “trading and liquidity becoming fragmented.”

Meanwhile, giving stablecoins the ECB’s backing would “outsource the provision of central bank money to private entities, endangering monetary sovereignty,” Panetta said.

As a possible solution, Panetta said the ECB might build a bridge between the private sector’s blockchain platforms and its own Target 2 settlement system.

Alternatively, it could make central bank money — the claim against the ECB in which wholesale transactions are settled — available on those platforms or create its own, he added.

Related