WEF panelists urge for efforts to bridge ‘AI divide’

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Updated 23 January 2025
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WEF panelists urge for efforts to bridge ‘AI divide’

  • According to UN figures, 2.7 billion people do not have access to the Internet

DUBAI: While smart technologies unleash opportunities in investment and trade, concerted efforts must seek to bridge the “AI divide” in developing countries, a World Economic Forum panel heard on Thursday.

Deemah Al-Yahya, secretary-general of the Digital Cooperation Organization, said the need for energy, computing power and talent to activate AI would expand the digital gap in the developing world.

“An AI-generated image consumes more energy than charging your smartphone. That’s going to cause a great challenge for developed countries, so let alone developing countries that do not even have reliable energy.”

She added: “Another factor is who is going to get access to the computing power, considering the supply chain and cost? How can talents access the computer power to produce algorithms, local content and innovation?”

According to UN figures, 2.7 billion people do not have access to the Internet, with AI growth threatening to widen the digital gap.

However, using trading digital assets can increase access to new technologies, including AI, quantum computing and blockchain, in the global south, Al-Yahya said.

Highlighting the varying degrees of advancement of digital infrastructures among countries, Al-Yahya stressed harmonizing collaboration and bridge communication between the public and private sector, which served as the drivers of the digital economy.

One of the Digital Cooperation Organization’s mandates is to harmonize policies and regulations among 16 member states from Asia, Europe, Africa and the Middle East to expand technology use and grow their digital economy.

Addressing the benefits of AI in improving efficiency and reducing errors, Thani Ahmed Al-Zeyoudi, UAE minister of state for foreign trade, highlighted synergies and links to different tech systems, even within the same country.

“Many of those technologies are under deployment, but in various scattered ways. Each stakeholder is following their own way when it comes to customers, procedures and managements system,” said Al-Zeyoudi, highlighting the role of governments in implementing regulations that put AI to good use and ensure communication across stakeholders.

He addressed the UAE’s export of technologies to Africa, noting that the private sector took the lead in such initiatives.

“To avoid fragmentation as governments, we need to take the lead by putting (in place) a regulatory system that ensures that the private sector has the freedom to start doing their job, get the funding whenever required, and support them in talking to the right stakeholders,” he said.


Egypt signs International Finance Corp. deal to expand private sector role in airports

Updated 10 sec ago
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Egypt signs International Finance Corp. deal to expand private sector role in airports

RIYADH: Egypt’s airport sector is set for increased private sector participation thanks to a new agreement with the International Finance Corp., which aims to modernize infrastructure, boost capacity, and attract foreign investment. 

Prime Minister Mostafa Madbouly oversaw the signing ceremony at the government’s new administrative capital, where Egypt’s Planning Minister Rania Al-Mashat, Civil Aviation Minister Sameh Al-Hefny, and IFC Vice President for Africa Sergio Pimenta formalized the deal. 

The agreement builds on Egypt’s ongoing partnership with the World Bank’s private sector arm, extending advisory services that support the country’s privatization efforts. 

“The agreement signed today ... is an extension to strengthen cooperation with the International Financing Corp. to provide advisory services for the governmental proposals program,” Madbouly said in a statement posted on the government’s official Facebook page. 

He added that the IFC “will provide consultative services to expand the participation of the private sector of the airport sector" in the Egyptian market.

“This is an important partnership that will contribute to the improvement of the services provided and the capacity of Egyptian airports,” Madbouly added. 

The agreement aligns with Egypt’s broader strategy to leverage the IFC’s expertise in attracting both local and foreign investments, providing technical support to national agencies, and fostering public-private partnerships, the prime minister highlighted. 

Planning Minister Al-Mashat noted that “the government is aiming to expand private sector partnerships in the airport sector, coinciding with strong growth in the tourism, transport, and storage sectors during the first quarter of the current financial year.” 

She highlighted that private sector investments now account for a record 63 percent of total investment, driven by a surge in tourism in 2024, bolstered by Egypt’s preparations for the Grand Egyptian Museum’s opening — a reflection of rising airport traffic and growing opportunities for private sector involvement.

Al-Mashat noted that the government has paved the way for these steps by enhancing macroeconomic stability, implementing measures to control public finances, enacting structural reforms to stimulate the private sector, and fostering an investment climate to attract both local and foreign investors. 

Civil Aviation Minister El-Hefny stated that under the agreement, the ministry aims to develop a strategic plan to identify airport projects suitable for private sector partnerships. 

IFC’s Vice President for Africa Pimenta said that enhancing Egypt’s airport infrastructure through public-private partnerships will drive economic growth. He added that the program will help attract global investors to build modern, high-efficiency airports, strengthening Egypt’s position as a global hub for travel and trade. 

Between July 2023 and May 2024, Egypt saw an influx of $900 million in investments from the IFC — a testament to the sustained momentum of financial inflows into the country’s economic landscape, Al-Mashat said during the “IFC Day in Egypt” event held in May. 


Thai firms eye investment opportunities in Saudi Arabia’s Qassim region, ambassador reveals 

Updated 14 min 54 sec ago
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Thai firms eye investment opportunities in Saudi Arabia’s Qassim region, ambassador reveals 

RIYADH: Several Thai companies plan to invest in Saudi Arabia’s Qassim region, recognizing it as an attractive business hub, according to the country’s ambassador to the Kingdom.

Darm Boontam highlighted Qassim’s position as Saudi Arabia’s “food basket” and its role as a key trade and transport link connecting Riyadh, Madinah, and Hail, making it an appealing destination for Thai investors, he told Al-Eqtisadiah. 

Located near the geographic center of the Arabian Peninsula, the region produces approximately 1.22 million tonnes of agricultural products annually.

It is also home to the only bauxite mine in the Middle East, with estimated reserves of 183.4 million tonnes, making it a key player in the mining sector.

The investment push aligns with efforts to strengthen economic ties between Thailand and Saudi Arabia after both countries fully restored diplomatic relations in 2022. Since then, bilateral trade and investment have surged to $8.8 billion. 

According to Al-Eqtisadiah, Ambassador Boontham said the two sides are working on the possibility of concluding a free trade agreement between Thailand and the Gulf Cooperation Council in 2025, which would boost bilateral trade and investment. 

In 2024, Thailand’s key exports to Saudi Arabia included automobiles, which accounted for 57 percent of the total, followed by wood products and rubber and its derivatives at 7 percent and 5.6 percent, respectively, bringing the total export value to $2.8 billion, according to the top official. 

Conversely, Thailand primarily imported crude oil and petroleum products from Saudi Arabia, which made up a significant portion of the $5.56 billion total. 

In May, a delegation of over 100 Saudi companies visited Thailand to explore investment opportunities, underscoring the growing trade and investment relationship between the two nations. 

Saudi Minister of Commerce Majid bin Abdullah Al-Qasabi led the delegation, and held discussions with Thai leaders, including Prime Minister Srettha Thavisin. Both sides agreed to enhance cooperation in areas including agriculture, tourism, and manufacturing.

According to Boontam, Thai businesses across diverse industries — including food manufacturing, health and wellness, jewelry, and cosmetics — are increasingly interested in establishing a presence in Saudi Arabia. 


Saudi Arabia launches incentives package to attract FDI in mining sector 

Updated 28 min ago
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Saudi Arabia launches incentives package to attract FDI in mining sector 

RIYADH: Saudi Arabia has launched a new incentive package to attract foreign direct investments into the nation’s mining sector as the Kingdom steadily continues its economic diversification efforts. 

According to a Saudi Press Agency report, the Ministry of Investment is collaborating closely with the Ministry of Industry and Mineral Resources through an exploration enablement program aimed at simplifying investments in the mineral exploration industry. 

This initiative is also part of the Kingdom’s efforts to enhance exploration and create an attractive investment environment for local and international mining companies.

Speaking at the Future Minerals Forum in Riyadh in January, Saudi Arabia’s Minister of Industry and Mineral Resources Bandar Alkhorayef said that the nation seeks to promote exploration opportunities across 5,000 sq. km of mineralized belts in 2025, aligned with the country’s broader plans to establish mining as the third pillar of its industrial economy. 

During the same event, Abdulrahman Al-Belushi, deputy minister for mining development at the Ministry of Industry and Mineral Resources, said that the Kingdom is projected to invest SR120 million ($32 million) in 2025 as mining incentives aimed at supporting companies with the right technical expertise. 

Attracting international investments in the mining sector also aligns with Saudi Arabia’s ambitious goal to secure $100 billion a year in FDI by the end of this decade. 

The latest collaboration between both ministries follows the granting of exploration licenses for multi-mineral sites in Jabal Sayid and Al-Hajjlah.

The licenses cover a total area of 4,788 sq. km. and companies are expected to spend approximately SR366 million ($97.6 million) on exploration over the next three years.

In 2024, Saudi Arabia revised upward estimates for its untapped mineral resources to $2.5 trillion from a 2016 forecast of $1.3 trillion. 

In January, the Saudi Cabinet also authorized the Kingdom’s Ministry of Industry and Mineral Resources to sign a cooperation agreement with the World Economic Forum to implement a project aimed at securing critical minerals for development.

In the same month, Saudi Arabia also allocated five sites for establishing mining complexes in the Makkah and Asir regions as part of the Kingdom’s strategy to attract quality investments, enhance transparency, and support local communities.


5G advanced in Saudi Arabia with launch of first live Cloud RAN site

Updated 25 March 2025
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5G advanced in Saudi Arabia with launch of first live Cloud RAN site

JEDDAH: The Saudi telecom sector is set to advance with the launch of its first live Cloud Radio Access Network site, marking a significant step in the Kingdom’s 5G innovation.

Finnish technology company Nokia and Zain KSA announced on March 25 the completion of the site, which achieved peak download speeds of 1.5 gigabits per second when connected to the telecom company’s 5G core network.

The trial commenced on Dec. 24 and concluded on Jan. 26, according to a statement.

As part of its national digital transformation strategy, Saudi Arabia is investing in advanced technologies, with the successful Cloud RAN trial highlighting the potential of a flexible, multi-vendor ecosystem to meet evolving customer demands and support emerging enterprise applications.

This innovation, along with Vision 2030 initiatives, is expected to drive the value of the 5G sector in the Kingdom to $13.41 billion by 2029, up from $2.1 billion in 2023, according to TechSci Research.

Mohammed Al-Nujaidi, chief technology officer at Zain KSA, said the company strives to deliver transformative digital experiences that empower its customers to thrive in a fast-evolving market.

“Partnering with Nokia on the Kingdom’s first live Cloud RAN site allows us to explore new service models, reduce ongoing network costs, and respond more quickly to our enterprise and individual consumer demands,” he said.

The CTO added: “Increased network agility will support a wide array of new use cases, underscoring our role in driving Saudi Arabia’s digital transformation.”

Mohammad Al-Tayeh, customer team head for Zain Group and Zain KSA at Nokia mobile networks, said that the deployment of the Kingdom’s first live Cloud RAN site is a testament to Nokia’s dedication to delivering next-generation networking solutions.

“By introducing a fully cloud-native approach, we not only match the performance of purpose-built RAN but also create a future-ready platform that supports AI-RAN, Open RAN, and even potential 6G innovations,” Al-Tayeh said.

He further noted that the partnership with Zain KSA showcases how cloudification can enhance resource optimization, lower the total cost of ownership, and unlock new growth opportunities across various sectors in the Kingdom.

This deployment highlights the potential of cloud-native architectures in enhancing network efficiency, reducing total cost of ownership, and accelerating time-to-market — key benefits for communications service providers and enterprise customers seeking to modernize their networks.

Nokia’s Cloud RAN approach ensures peak performance by delivering full feature parity with purpose-built solutions. The trial also lays a strong foundation for future innovations, including AI-RAN, Open RAN, and potential 6G networks.

In January, Nokia announced it had partnered with Zain KSA to launch the first 4G/5G Femtocell solution in Saudi Arabia and the Middle East and Africa region, aimed at improving mobile coverage and optimizing connectivity for enterprise customers.


Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices

Updated 25 March 2025
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Kuwait’s inflation steady at 2.49% in Feb., driven by food and services prices

RIYADH: Kuwait’s inflation rate remained steady at 2.49 percent in February, with a year-on-year upsurge in services and food prices, according to the latest data from the Central Statistical Bureau. 

The measure was broadly the same level as the 2.5% figure seen in both January and December.

In February, the index reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remains moderate, specific sectors experienced significant annual cost escalations.

The food and beverage sector recorded a 5.23 percent year-on-year increase, followed by the clothing and footwear division, which saw a 4.63 percent surge.

Prices in the miscellaneous goods and services sector increased by 5.46 percent, driven by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08 percent, while the furnishing and household maintenance division rose 3.04 percent.

Kuwait’s inflation trends align closely with those seen in other Gulf Cooperation Council countries. Saudi Arabia’s inflation remained steady at 2 percent year-on-year in February, primarily driven by an 8.5 percent increase in housing rents. In contrast, Oman recorded a milder annual inflation increase of 1 percent in the same month, led by a 6.3 percent rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau report highlighted the price trends across different expenditure groups and provided insight into the movement of key categories within the consumer price index.

Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90 percent annually and remaining unchanged on a month-to-month basis. 

Transport prices declined by 1.19 percent over the past year, though they saw a minor monthly uptick of 0.07 percent. The communication division recorded a slight annual increase of 0.88 percent, while the recreation and culture sector rose by 2.48 percent. 

Education costs saw a small 0.71 percent increase, and the restaurants and hotels sector recorded a 2.03 percent annual rise.

The report showed that the total index, excluding food, rose by 1.93 percent annually, while the total index, excluding housing, increased by 3.13 percent. These figures suggest that inflationary pressure is primarily driven by non-housing-related expenses.

This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent month-on-month increase, according to data from the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund highlighted Kuwait’s non-oil sector recovery amid easing inflation. However, it noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.