The 4th US-Saudi Business Opportunities Forum held in Riyadh recently brought together government and business leaders from the United States and Saudi Arabia and demonstrated the commitment between our countries and companies to advance the US-Saudi commercial relationship. It is clear that we have a strong foundation to build upon and we are deeply vested in each other’s success.
At the forum, we shared observations, based on experiences around the world, on how investment is facilitated by trade, innovation, competitiveness and government policies.
We have observed that investment follows trade.
When conditions exist for trade to flourish, with low barriers and efficient processes, investments follow.
When companies successfully sell into a market, they want to stay close to their customers and naturally follow on to establish a presence by investing and innovating in the market.
In Saudi Arabia, I saw an excellent example, at the Dhahran Techno Valley Company (DTVC) in Dhahran, of the US and other international companies that have made investments to be close to their customers, in particular Saudi Aramco.
These companies have setup research and development (R&D) operations here to innovate and meet the needs of their customers, tailored to the conditions of Saudi Arabia.
By creating an innovation-friendly ecosystem, including university connections as well as access to research grants, DTVC promotes talent development and capacity building — and enhances the innovation and competitiveness of the companies that invest.
Through hiring local graduates, many of them women with STEM backgrounds, the talent base developed will be a key factor in attracting new investments.
In any market, the business environment, the ease of doing business, is key to attract investment. Companies have choices and gravitate to those countries where the business environment is the most conducive to obtaining returns and managing risk.
Delays and uncertainties in administrative processes are deterrents to investment.
Concrete policy changes that improve the business environment are therefore a significant element in attracting investment.
Toward this end, we find it valuable for policymakers to obtain early input from private sector stakeholders. Such consultation will help create greater understanding of issues that might hinder investment and a sense of greater predictability.
The global competition for attracting FDI is fierce. Saudi Arabia would benefit by using work force development programs to match Saudization labor policies so that the skill-set of the labor force will meet the needs of international firms.
Investment opportunities may be inhibited rather than helped by offset requirements that make foreign investment a requirement of eligibility for major public tenders. Such a requirement may result in keeping many companies away from this market.
We laud Saudi Arabia’s economic reforms and commitment toward ensuring the long-term health of its economy. The Kingdom has demonstrated real leadership in undertaking energy subsidy reforms.
We also recognize the challenges Saudi Arabia faces when rolling out the National Transformation Program (NTP). The US government and its private sector stand ready to support the Kingdom through lessons learned, solutions and technologies, and best practices to attract investment and innovation.
We are already working on coupling Saudi Arabia’s new needs and priorities with leading American solutions. For example, last October, we brought representatives from 15 US firms to Riyadh and Jeddah as part of an architecture and engineering trade mission focused on energy saving and green buildings.
Next month, we will bring 20 leading American health IT, hospital management and training to the Kingdom in a direct response to Health Minister Khalid Al-Falih’s call for a greater role by the private sector to modernize the operational side of Saudi Arabia’s health care system.
These trade missions often result in partnerships, joint ventures and investments as these companies understand the market.
The US is also keen to share its experiences in enabling entrepreneurship with the Kingdom as this country embarks on its NTP.
Supporting entrepreneurs across the Middle East, and indeed around the world, is a top priority for President Barack Obama. He recognizes that opportunity for business creators to thrive around the world is the foundation for a rising middle class, for security and stability, and for broad-based prosperity.
The Department of Commerce leads the administration’s effort to support and empower aspiring entrepreneurs, both in the United States and across the globe. As America’s innovation agency, my department helps connect the world’s next generation of entrepreneurs with the networks, mentors and investors they need to make their businesses successful.
Investment in both directions will enhance the international competitiveness of our respective economies. While we are undertaking efforts to expand our trade and investment relationship, US companies have already invested $11 billion in the Kingdom, and Saudi companies have similarly invested $13 billion in the United States.
We welcome additional Saudi investment in the US companies and find that by investing in the United States and working with its demanding markets and gaining access to the latest technologies, they become more competitive globally.
We will hold our annual SelectUSA Investment Summit from June 19-21 in Washington, with the participation of Commerce Secretary Penny Pritzker and a number of cabinet members.
We welcome a strong Saudi presence at the conference.
We look forward to collaborating with our friends in this great Kingdom to advance our commercial relationships and the successes of our companies and countries.
— Arun M. Kumar is director general of the US and Foreign Commercial Service and Assistant Secretary for Global Markets US Department of Commerce.
Deepening Saudi-US Business partnership through investment
Deepening Saudi-US Business partnership through investment
Artificial intelligence is transitioning into a ‘digital employee’
- AI can be an effective tool, business leaders tell Arab News
- Not about jobs, but ‘convergence of human capital and AI’
RIYADH: Artificial intelligence is fundamentally reshaping the world of work, transitioning from a supporting tool to an active partner that is radically changing the nature of professions and productivity standards.
Amidst the current global transformations, an active regional digital environment is emerging.
This is being led by Saudi Arabia through Vision 2030 and massive investments in smart infrastructure, providing a living model for studying the implications of this partnership between humans and machines on the future of work in the region.
Arab News spoke to various business leaders about the emerging shape of the sector.
Salem Bagami, co-founder of Metatalent, said the ideal relationship between humans and machines at work should be complementary and collaborative.
Humans would bring creativity, emotional intelligence, and complex decision-making, while machines excel at processing big data and performing repetitive, precise tasks.
He believes that this type of balanced partnership would lead to unprecedented productivity and innovation.
Mohammad Al-Jallad, chief technologist and director at HPE, said AI has gone beyond being merely an executive tool to becoming a “digital employee” entrusted with automating routine tasks and providing insights based on data analysis.
He believes that the real opportunity lies not in the debate over job replacement, but in “the convergence of human capital and artificial intelligence.”
AI should augment human teams by taking on menial and routine tasks, enabling employees to focus on critical thinking, creativity, and ethical reasoning, significantly improving operational results.
Bagami also emphasized the complementary nature of this partnership. “The ideal relationship between humans and machines at work is one of collaboration, where each complements the others.”
He explained that humans bring creativity, emotional intelligence, and nuanced decision-making, while machines excel at processing big data and performing repetitive tasks efficiently, leading to increased productivity and innovation.
Opinion
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Salem Alanazi, chairman of Jathwa Technology Co., notes a significant trend among Saudi Arabia companies toward using AI applications to provide faster services to customers at lower costs.
The emergence of the “virtual employee” available around the clock has eliminated the need for some traditional jobs in specific sectors.
Alanazi warns that some companies’ reluctance to adopt AI may expose them to real risks. “All those who hesitated to benefit from AI applications have a lack of understanding of these technologies.”
He said those who adopt these technologies will be able to offer lower-cost, higher-quality services, which will affect the market position of companies that lag behind.
Ali Aljumhour, CEO of VALUE Consultancy, said that the transition of AI into a partner has reshaped the list of most in-demand skills in the job market.
Skills such as “prompt engineering,” “human-machine integration,” and “digital ethics” are becoming increasingly important.
He added that AI has become an instantly available “technical knowledge base,” shifting the criteria for professional distinction toward those capable of smart interaction with these technologies.
In terms of ethics, transparency, and trust, Alanazi points to the complexities of global AI governance, where legislation overlaps and evolves rapidly to keep pace with potential risks, particularly in the areas of cybersecurity and privacy.
Al-Jallad emphasizes this crucial dimension, noting that providing responsible and reliable AI solutions that meet the highest standards of transparency is a key priority, especially in regulated sectors.
Bagami believes there should be basic standards for the ethical use of Al, emphasizing the need for transparency, accountability, and fairness, along with using diverse data sets to prevent bias and protect privacy.
He believes that building trust between humans and machines requires clear explanations of how systems work, giving users the opportunity to provide feedback and conducting periodic performance reviews.
On performance evaluation, Aljumhour said: “I expect radical changes in standards, shifting from measuring individual effort to evaluating the quality of the partnership between humans and machines.”
There should be a focus on the quality of inputs provided to intelligent systems, the accuracy of review and modification, and complex decision-making based on outputs.
He warns, however, of new risks that may arise, such as over-reliance on AI or difficulty in determining responsibility for mistakes.
In the employment sector, Aljumhour expects fundamental changes in standards.
There will be questions and tests focusing on measuring skills in dealing with AI, such as asking candidates about their experiences of collaborating with these systems, or testing their ability to formulate effective requests for complex tasks.
Aljumhour identifies significant human challenges in this transition, with “fear, loss of power, and exclusivity of knowledge” being the biggest concerns for experienced employees.
