Overcoming challenges in the GCC’s tech ecosystem

Overcoming challenges in the GCC’s tech ecosystem

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Artificial intelligence is well on its way to becoming a transformative force in the Gulf Cooperation Council area. The pace has been further accelerated by the rise of generative AI, which is projected to be a $24 billion market in the GCC by 2030.

However, the region’s stakeholders will need to play catch-up to unlock AI’s full potential. A range of factors must be in place to create a thriving AI ecosystem that supports innovation. Currently, the region faces obstacles in three areas.

First, while the GCC has seen significant funding commitments in AI infrastructure across connectivity, data centers, and cloud, it must accelerate progress, especially in data centers, where supply trails total demand by more than 40 percent.

For example, the market for high-performance computing data centers in Saudi Arabia alone is projected to grow from $200 million to $300 million by 2030.

To accommodate higher-density requirements, data centers around the world are undertaking HPC fit-outs using specialized chips. The resulting supply shortage threatens to impede growth. Indeed, the lead time for chip orders in the region is two years.

Second, GenAI uses foundational large language models trained on publicly available data to generate insights. The real value may lie in training these LLMs on an organization’s own datasets.

However, companies typically must undertake a series of time-consuming steps — including, in some cases, reinforcement learning from human feedback — to make raw data usable.

An additional hurdle involves concerns about global regulations on data privacy, access, and copyright. Consider that 27 percent of organizations around the world have banned the use of GenAI altogether.

Third, GCC tech companies seeking to scale up face a talent gap. To date, they have found it difficult to attract specialized tech talent for roles such as machine learning engineers, cloud architecture designers, and data scientists.

The region’s universities are producing competitive graduates, but most companies still source talent from global tech hubs such as Bangalore, London, and Silicon Valley.

Beyond lucrative salaries, these candidates have become accustomed to packages that include equity-linked compensation, flexible working policies, and values-based recruitment. GCC companies have yet to embrace these practices, putting them at a disadvantage.

Elevating the region’s AI ecosystem will require targeted action by the region’s private and public sectors across these three areas.

The AI landscape is evolving quickly, fueled by seemingly continuous advancements in GenAI. The GCC could be well positioned to capture its share of the market.

Prateek Chauhan, Diana Dib, Chady Smayra & Hani Zein

GCC tech champions must adopt an interoperable infrastructure that seamlessly connects both Eastern and Western technologies to ensure adaptability, scalability, and resilience in an ever-evolving tech landscape.

They could address chip shortages either by sourcing from alternative vendors or using cloud services that offer graphic processing units “as a service.”

Companies also need to strengthen their data privacy measures to give customers confidence in how data is handled — for instance, by building gateway LLM architectures that use enterprise datasets in a secure and effective way.

Regional tech leaders can bridge talent gaps through global acquisitions and deploy low-code, no-code, and generative-code tools to empower a broader talent pool.

Meanwhile, regional governments can help remove obstacles to the ecosystem’s development. To ensure the GCC has the necessary infrastructure, they could craft policies and incentives supporting investment in critical hardware and the establishment of HPC data centers to meet local demand.

Regional governments could also aggregate national data and make it available for companies to train and fine-tune LLMs.

Given broader concerns about the accuracy and reliability of AI models, regional policymakers must take a holistic approach to regulating the use of AI. They will need to strike a balance among competing priorities.

For example, setting policies and frameworks that govern data privacy, copyright, and Internet protocol without stunting innovation in AI application development could improve the ability of both local tech champions and the region to promote adoption.

One path would be for government leaders to participate in setting global tech and AI standards rather than simply following them.

Last, they could reimagine the education ecosystem, from K-12 to university, to produce a sufficient supply of data scientists, experts, and tech leaders.

The AI landscape is evolving quickly, fueled by seemingly continuous advancements in GenAI.

The GCC could be well positioned to capture its share of the market — if private companies and public sector leaders can move forward collaboratively and with a sense of urgency to support growth and innovation.

Prateek Chauhan is principal, and Diana Dib, Chady Smayra, and Hani Zein are partners at Strategy& Middle East, part of the PwC network.

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Islamic military coalition hosts training in Mali to counter terrorist financing

Islamic Military Counter Terrorism Coalition concluded a specialized training program on combating terrorist financing in Bamako
Islamic Military Counter Terrorism Coalition concluded a specialized training program on combating terrorist financing in Bamako
Updated 5 min 6 sec ago
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Islamic military coalition hosts training in Mali to counter terrorist financing

Islamic Military Counter Terrorism Coalition concluded a specialized training program on combating terrorist financing in Bamako
  • Program aimed to strengthen national capacities to counter terrorist financing and money laundering
  • Initiative is part of a broader series of strategic activities by the coalition to support its member states

RIYADH: The Islamic Military Counter Terrorism Coalition concluded a specialized training program on combating terrorist financing in Bamako, Mali, the Saudi Press Agency reported on Sunday.

Conducted in cooperation with Mali’s Ministry of Defense and Veterans Affairs, the program aimed to strengthen national capacities to counter terrorist financing and money laundering.

The initiative is part of a broader series of strategic activities by the coalition to support its member states, the SPA added.

The launch event was attended by Lt. Gen. Sadio Camara, Mali’s minister of defense and veterans affairs; Maj. Gen. Mohammed Al-Moghed, secretary-general of the coalition; senior diplomatic and military officials; and representatives from national and international organizations.

The program featured a scientific lecture, “Financial Investigations into Terrorism Financing and Money Laundering Crimes,” attended by more than 200 participants, including security, oversight, and judicial personnel.

The session covered methodologies for financial tracking, analysis of illicit networks, and shared relevant international experiences.

Additionally, a closed workshop, “Methods of Countering the Financing of Terrorist Organizations in the Sahel Region,” brought together specialists from key national and regional entities.

Discussions focused on shared challenges, successful models, ongoing initiatives, and mechanisms for enhanced cooperation.

The event concluded with a reaffirmation of the importance of sustained collaboration between the coalition and its member states.

Participants emphasized the need to expand training and capacity-building efforts to enhance institutional readiness and strengthen collective responses to security threats across the Sahel region.


Pakistani top minister hints at increasing defense budget weeks after military standoff with India

Pakistani top minister hints at increasing defense budget weeks after military standoff with India
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Pakistani top minister hints at increasing defense budget weeks after military standoff with India

Pakistani top minister hints at increasing defense budget weeks after military standoff with India
  • Budgeted defense expenditure stood at Rs2,122 billion for FY25 while actual expenditure till March 2025 was Rs1,424 billion
  • Pakistan’s historically large defense budget is attributed to a complex interplay of factors, including perceived threat from India 

KARACHI: Planning Minister Ahsan Iqbal hinted this week there could be an increase in Pakistan’s defense allocation in the budget for the fiscal year 2025-26, due to be announced next month, weeks after a military standoff with India that alarmed the world.

Pakistan and India attacked each other with missiles, drones and artillery earlier this month after tensions surged over an attack in April on tourists in Indian-administered Kashmir that New Delhi blamed on Pakistan. Islamabad has denied the charge.

“We want to try and put the least burden on the common man but right now I believe it is our national duty that in this budget we give our armed forces the resources they need to strengthen our defense capabilities so that our defense can be safe even in the future,” Iqbal said in remarks to reporters when asked about reports of an increase in the defense allocation for the new fiscal year. 

The conflict with New Delhi escalated on May 7 after India first hit Pakistan and Azad Kashmir with missiles, and Pakistan retaliated, saying it had downed six Indian fighter jets. 

Fighting between the two nations continuing for four days, with missile and drone strikes on each other’s military facilities and airfields as well as increased gunfire exchanges on the de facto LoC border. A ceasefire was reached on May 10.

“This has been established that our neighbor is a dangerous enemy, who once again attempted to attack us in the dark of night, but we punished them by fully responding to this offense and it [India] will definitely think a hundred times before committing such an aggression next time,” Iqbal added.

“However, our duty is to stay alert and prepared all the time so that if someone commits such a mistake in future, then it could be responded to more effectively.”

Two days after the ceasefire, Indian Prime Minister Narendra Modi warned Pakistan New Delhi would target “terrorist hideouts” across the border again if there were new attacks on India and would not be deterred by what he called Islamabad’s “nuclear blackmail.”

“In the coming days, we will measure every step of Pakistan... what kind of attitude Pakistan will adopt,” Modi said, adding that India had only “paused” strikes.

In a report published on Saturday, Tola Associates, a major tax advisory and consultancy firm, proposed raising the defense budget to Rs2.8 trillion, a 32 percent increase compared to the last fiscal year, owing to a “war-like situation” with India.

“The budgeted defense expenditure stood at Rs2,122 billion for FY25 while the actual expenditure till March 2025 was Rs1,424 billion. [However], due to the ongoing war situation with the neighboring country, defense spending may increase by up to 50 percent in the Q4FY25,” the report said. 

“Given the current regional tensions and the need to ensure Pakistan’s defense preparedness, we estimate total defense spending to reach Rs2.4 trillion by June 2025.”

Pakistan’s historically large defense budget is attributed to a complex interplay of factors, primarily driven by regional security concerns and internal challenges. These include the perceived security threat from India as well as internal instability and security threats like terrorism. Additionally, debt servicing and the allocation of resources toward military interests have also played a role in shaping the budget.


Closing Bell: Saudi main index slips to close at 10,999 

Closing Bell: Saudi main index slips to close at 10,999 
Updated 13 min 33 sec ago
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Closing Bell: Saudi main index slips to close at 10,999 

Closing Bell: Saudi main index slips to close at 10,999 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, falling 118.96 points, or 1.69 percent, to close at 10,999.78. 

The total trading turnover of the benchmark index stood at SR3.44 billion ($917 million), with 41 stocks advancing and 203 declining. 

Similarly, the Kingdom’s parallel market Nomu dropped 242.96 points, or 0.89 percent, to close at 27,017.77. A total of 32 listed stocks advanced, while 56 retreated. 

The MSCI Tadawul Index also declined, losing 26.41 points, or 1.85 percent, to close at 1,402.40. 

The best-performing stock of the day was Saudi Steel Pipe Co., which saw its share price surge 4.79 percent to SR61.20. 

Other top performers included Raoom Trading Co., with its share price rising 4.35 percent to SR72.00, and National Industrialization Co., which gained 3.43 percent to close at SR9.36. 

ACWA Power Co. Fund recorded the most significant drop, falling 7.79 percent to SR251.00. 

Saudi Co. for Hardware saw its share price decline by 4.39 percent to SR29.40, while Alujain Corp. fell 4.38 percent to SR36.05. 

On the announcement front, Sumou Real Estate Co. said it has signed a development agreement with the National Housing Co. for the Areem Makkah project. The contract involves constructing residential units — primarily villas — on land allocated to Sumou within the Makkah Gate project in Makkah City, with an estimated value of SR680 million. 

According to a statement on Tadawul, the 42-month project is expected to positively impact the company’s financial results once sales and implementation commence.

Sumou Real Estate Co. ended the session down 1.17 percent at SR44.00.  

Dr. Soliman Abdul Kader Fakeeh Hospital Co. has signed a contract with Advanced Horizons Contracting Co. for the construction of a new medical center in Zahra, Jeddah. A bourse filing revealed that the contract is valued at approximately SR101.8 million. The full cost of construction and finishing will be funded by Yaser Yousef Naghi for Investment Co., as stipulated in the agreement. 

Under the ownership of Yaser Yousef Naghi for Investment Co. and the oversight of DSFH, AHC will carry out all construction and finishing work for the Zahra Medical Center. DSFH will provide the medical equipment and furniture separately, in accordance with the framework agreement. 

Dr. Soliman Abdul Kader Fakeeh Hospital Co. ended the session at SR42.85, down 0.35 percent. 

Mutakamela Insurance Co. announced it has obtained approval from the insurance authority to renew its license to operate in the Kingdom. The renewed license will allow the company to conduct insurance activities from Aug. 22, 2025, through Aug. 21, 2028, according to a Tadawul statement. 

Mutakamela Insurance Co. ended the session down 1.85 percent at SR15.02. 


Moroccan, Egyptian stalls shine at Islamabad food fundraiser featuring 80 diplomatic missions

Moroccan, Egyptian stalls shine at Islamabad food fundraiser featuring 80 diplomatic missions
Updated 30 min 6 sec ago
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Moroccan, Egyptian stalls shine at Islamabad food fundraiser featuring 80 diplomatic missions

Moroccan, Egyptian stalls shine at Islamabad food fundraiser featuring 80 diplomatic missions
  • Islamabad Foreign Women’s Association in collaboration with Serana Hotels holds international food festival for third consecutive year 
  • IFWA is a non-political, non-profit organization established in 1995 by the wives of ambassadors posted in the Pakistani federal capital 

ISLAMABAD: The Islamabad Foreign Women’s Association (IFWA) organized a food festival in the Pakistani capital on Sunday featuring cuisines from at least 28 countries and raising over Rs.2.5 million ($8,929) to support education and health care initiatives for poor Pakistani women and children.

The festival, organized for the third consecutive year, was a joint project of IFWA and Serena Hotels, with 80 diplomatic missions participating. IFWA is a non-political, non-profit organization established in 1995 by the wives of ambassadors posted in Islamabad, with the aim of supporting underprivileged and disadvantaged Pakistani women and children. 

Dianne Hawkins, IFWA president and the wife of the Australian High Commissioner, told Arab News around Rs2.5 million had been raised at Sunday’s event. 

“It is our major fundraising event of the year to support the charities that IFWA supports here [in Pakistan], which are mostly focused on benefiting vulnerable communities of Pakistani society, especially women and children,” Hawkins said, adding that most of the charities IFWA supported were in the education and health sectors.

Aziz Bolani, the CEO Serena Hotels, said that along with supporting underprivileged communities, the event also helped promote international cuisines and cultures through food stalls that represented countries from all around the world.

“There are real needs in Pakistan, and this is a form of diplomacy, a soft approach that brings people together,” he told Arab News.

Among the most popular stalls were those set up by the embassies of Morocco and Egypt. 

“Today, we are serving Moroccan chicken, Moroccan salads, and one of the main traditional dishes of Morocco, that is typically served every Friday, couscous with vegetables,” Moroccan Ambassador Mohamed Karmoune told Arab News. 

Homemade Moroccan breads and sweets as well as traditional tea was also available. 

Georg Steiner, the ambassador of Switzerland to Pakistan, said he hoped the festival would introduce more Pakistanis to Swiss food.

“We brought along some Swiss food like Rösti [potato dish], Zürich style veal, and also some excellent cakes,” he told Arab News.

He said he had tasted food at many stalls and his favorites were those serving Vietnamese, Czech, and Pakistani dishes. 

“I think Pakistani food is always wonderful, be it biryani or something else,” the Swiss envoy added.


Strict security in Makkah targets Hajj violations

Security patrols in Makkah arrested 2 Indonesian residents after they posted deceptive social media ads for fake Hajj campaigns.
Security patrols in Makkah arrested 2 Indonesian residents after they posted deceptive social media ads for fake Hajj campaigns.
Updated 56 min 49 sec ago
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Strict security in Makkah targets Hajj violations

Security patrols in Makkah arrested 2 Indonesian residents after they posted deceptive social media ads for fake Hajj campaigns.
  • Ministry of Interior reminded the public that entering Makkah without a Hajj permit from April 29 to June 10 is prohibited. (@makkahregion)

MAKKAH: Security patrols in Makkah arrested two Indonesian residents for fraud after they posted deceptive social media ads for fake Hajj campaigns, falsely promising accommodation and transportation within the holy sites.

In a separate case, Makkah police arrested two Kyrgyz residents for posting fraudulent ads targeting visit visa holders, misleading them into believing they could perform Hajj without a permit.

The suspects transported 87 visa holders and housed them in two rented locations in Makkah for a fee, the Saudi Press Agency reported on Sunday.

Legal action has been taken against them, and they have been referred to the Public Prosecution. The visa violators were also referred to the relevant authorities for legal penalties.

The General Directorate of Public Security urged all citizens and residents to follow Hajj regulations and report violations by calling 911 in Makkah, Riyadh, Madinah, and the Eastern Province, or 999 in other regions.

Hajj Security Forces at Makkah’s entrances also arrested seven residents and eight citizens for transporting 61 individuals without Hajj permits, according to the SPA.

The Ministry of Interior issued administrative decisions against the transporters, accomplices, and those transported.

Penalties include imprisonment, fines of up to SR100,000 ($26,600), public naming, deportation of residents, and a 10-year re-entry ban after sentencing.

The ministry also called for the confiscation of vehicles used in unauthorized transport and fines of up to SR20,000 for those attempting to perform Hajj without a permit.

It urged full compliance with Hajj regulations to ensure pilgrim safety and reminded the public that entering Makkah without a Hajj permit from April 29 to June 10 is prohibited.