AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit
With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time. (ANJ)
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Updated 12 September 2024
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AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit

RIYADH: Artificial intelligence experts have delivered their visions for the future of the technology at the 3rd Global AI Summit in Riyadh.

With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time.

Simon Turner, a partner at Sofinnova Digital Medicine, said: “In 10 years, I think we will have something that looks like what we’re talking about in terms of artificial general intelligence.

“So, I think we will have models that are more sophisticated, more intelligent than humans on basically any topic. I think that will be a very powerful and good thing, and I don’t think that it will be dangerous.”

Turner’s hope is that AI will be able create models that automate menial business tasks, freeing up employees’ time and producing value.

However, Dr. Richard Benjamins, the co-CEO of RISE.ai, said that artificial general intelligence may not be the key to the technology’s evolution.

“In 10 years, I believe that we will not have artificial general intelligence, so not general intelligence, but we will have much better problem solving,” he said.

“So, it’s not about emotions, about fear or power or what the AI wants or its intentions; it’s about solving hard problems, which we will use for business, and I think mostly in the context of the co-pilot concept. So, humans in the driving seat.”

But the danger, Benjamins added, is that human brain power may deteriorate as AI takes on all the hard work. Who remembers phone numbers anymore, he asked, when your mobile phone takes care of all the memory.

“I predict one of the jobs in the future will be to run a fitness center for your brain, because we don’t have to think anymore, we don’t have to be creative anymore,” Turner said.

“It’s all done by AI. So, I think that’s one of the risks that we hardly are seeing yet. In the future, we need to go to the gym to stay mentally healthy.”

But there is an upside to the evolution of AI, Turner added.

“In research, I think we’ll be making incredible groundbreaking biological discoveries. We’ll probably start getting towards the foundation of biology, understanding how we work, why we are the way we are, why we get diseases, how we potentially prevent them.

“When you go and see your GP, suddenly if some anomaly pops up, they’ll know what to do with you in a much more streamlined fashion.”

• The article originally appeared on Arab News Japan


Saudi Arabia unveils 15 new incentives to boost exports, logistics 

Saudi Arabia unveils 15 new incentives to boost exports, logistics 
Updated 16 sec ago
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Saudi Arabia unveils 15 new incentives to boost exports, logistics 

Saudi Arabia unveils 15 new incentives to boost exports, logistics 

RIYADH: Saudi Arabia has rolled out 15 new incentives under the Authorized Economic Operator program, to boost export competitiveness, enhance supply chain security, and advance the Kingdom’s ambitions as a global logistics hub.

The Ministry of Industry and Mineral Resources announced the incentives, which include key administrative benefits such as assigning liaison officers and account managers to streamline processes for investors and address challenges more efficiently.

As part of the program, companies will also gain access to industrial land, with long-term leases of up to 30 years, and eligibility for the “Custom Factory on Demand” service. These measures are designed to support industrial expansion and strengthen the Kingdom's position in global trade.

This announcement follows the ministry’s earlier declaration of an allocation of SR10 billion ($2.66 billion) to activate the Standard Incentives Program for the industrial sector. This funding, approved by the Saudi Cabinet in December last year, is intended to foster industrial investment, stimulate growth, and contribute to the sustainable development of Saudi industry.

The new incentives will also streamline procedures for investors, including expedited processing and priority access to pre-developed industrial lands and factories. Additionally, companies will be given preferential eligibility for incentives provided by the Saudi Export Development Authority.

Further financial support is available through the Saudi Industrial Development Fund, which can cover up to 75 percent of project costs. SIDF offers extended financing with repayment terms of up to 20 years and grace periods of up to 36 months. Eligible companies can also access advisory services and training programs from SIDF’s industrial academy.

The AEO program is a cornerstone of Saudi Arabia’s broader strategy to enhance customs and logistics services, simplify trade processes, and improve the efficiency of supply chains.

The initiative not only aims to bolster the position of Saudi companies as global leaders but also seeks to attract both local and foreign investments, especially benefiting small and medium-sized enterprises.

Launched by the Zakat, Tax, and Customs Authority, the Saudi AEO program aligns with global trade frameworks used by over 80 countries. It offers businesses that adhere to secure trade standards smoother operations in the international customs environment.

On Jan. 11, ZATCA expanded the program into a national initiative, integrating 15 government entities into the effort.


Global oil demand set to rise by 1.21 mbpd in 2025: KAPSARC

Global oil demand set to rise by 1.21 mbpd in 2025: KAPSARC
Updated 18 min 55 sec ago
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Global oil demand set to rise by 1.21 mbpd in 2025: KAPSARC

Global oil demand set to rise by 1.21 mbpd in 2025: KAPSARC

RIYADH: Global oil consumption is projected to increase by 1.21 million barrels per day in 2025, reaching a total of 103.74 million bpd, according to an analysis by the King Abdullah Petroleum Studies and Research Center.

The Saudi-based think tank’s latest report also forecasts that oil demand will rise by 1.23 million bpd in 2026, bringing global consumption to 104.97 million bpd.

KAPSARC’s forecast for 2025 is slightly lower than the projection made by the Organization of the Petroleum Exporting Countries in December 2024. OPEC predicted a 1.4 million bpd increase in global oil demand for 2025, bringing the total to 105.3 million bpd.

The KAPSARC analysis highlights several key factors that will influence oil demand growth in 2025 and 2026. While economic conditions and OPEC+ actions have been significant drivers of the oil market in recent years, the report emphasizes that new factors, such as geopolitics, inventory levels, and, to a lesser extent, the global energy transition, will play an increasingly prominent role in shaping market volatility in the coming years.

“Over the past couple of years, some of the main drivers for oil markets have been linked to the economy and OPEC+ actions. However, as we head into 2025 and 2026, new actors will start playing a more important role in shaping oil market volatility — namely, geopolitics, inventory filling, and, to a lesser extent, the energy transition,”  KAPSARC noted in its report.

Inflation is also expected to be a major factor in oil demand growth, with global inflation likely to remain above pre-pandemic levels in the next two years. This persistent inflationary pressure could affect both consumption patterns and investment in energy markets.

According to KAPSARC, countries in the Organisation for Economic Co-operation and Development will see minimal or no growth in oil demand over the next two years. In contrast, non-OECD nations — particularly India and the Middle East—are expected to experience significant demand growth.

India, for example, is forecast to see an increase in oil consumption of 220,000 bpd in both 2025 and 2026. China’s demand growth will remain relatively modest, with increases of 210,000 bpd in 2025 and 190,000 bpd in 2026. The Middle East is projected to experience a growth of 200,000 bpd in each of the next two years.

As a result, the overall growth in oil demand for non-OECD countries is expected to reach 1.09 million bpd annually in 2025 and 2026.

In terms of oil supply, KAPSARC expects global production to increase by approximately 1.48 million bpd in 2025 and 1.98 million bpd in 2026. The report predicts a supply surplus of 260,000 bpd in 2025, followed by a larger surplus of 1.01 million bpd in 2026.

However, KAPSARC also cautions that if OECD countries continue to maintain their historically low inventory levels, as seen in recent years, this could contribute to bearish conditions in the oil commodities market.

“Given the dynamics between oil supply and demand, we anticipate an overall surplus in both 2025 and 2026. If OECD countries keep their inventory levels low, we could see continued downward pressure on oil prices,” KAPSARC concluded.


PIF completes acquisition of 23% stake in Saudi Re to bolster local insurance sector

PIF completes acquisition of 23% stake in Saudi Re to bolster local insurance sector
Updated 13 January 2025
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PIF completes acquisition of 23% stake in Saudi Re to bolster local insurance sector

PIF completes acquisition of 23% stake in Saudi Re to bolster local insurance sector
  • Investment is expected to significantly strengthen Saudi Re’s position as the national reinsurer
  • Saudi Re to contribute to growth of Saudi reinsurance market and improve risk management for local insurers

RIYADH: Saudi Arabia’s Public Investment Fund has acquired a 23.08 percent stake in Saudi Reinsurance Co. through a capital increase and subscription to new shares. 

The deal, originally signed in July 2024, raises Saudi Re’s capital from SR891 million ($237 million) to SR1.15 billion, a move aimed at enhancing the insurer’s financial stability and credit ratings. 

The investment, which received regulatory approval and shareholder consent, is expected to strengthen Saudi Re’s position as the national reinsurer significantly, according to a press release. 

The move aligns with the Kingdom’s broader commitment to bolstering its insurance sector in line with the goals of Vision 2030. 

By retaining more premiums domestically, Saudi Re will contribute to the growth of the Saudi reinsurance market and improve risk management for local insurers. 

Sultan Alsheikh, head of financial institutions at PIF, said: “By investing in Saudi Re, PIF is reinforcing a leading regional reinsurer and strengthening Saudi Arabia’s insurance sector, which is an essential component of sustainable economic growth.” 

He added: “This enhances access to quality financial services for insurers and their policyholders, and strengthens the sector.” 

Arab News previously reported that Saudi Re’s capital increase would be funded by the issuance of 26.73 million new shares, valued at SR10 each, according to a bourse filing at the time. Representing 30 percent of the company’s capital, the shares were to be fully subscribed by PIF at SR16 per share, totalling SR427.68 million. 

“We are delighted to welcome PIF as a strategic investor and look forward to its role in enabling Saudi Re’s strategy and reinforcing its position as a national reinsurer, while further strengthening its presence regionally and globally,” said Ahmed Al-Jabr, CEO of Saudi Re. 

“This investment will provide us with multiple benefits, including boosting our financial position and unlocking opportunities for expansion and growth,” he added. 

Saudi Re, listed in the Saudi Market Exchange, operates in over 40 countries across the Middle East, Asia, Africa and Lloyd’s market in the UK. It holds high credit ratings, including an A-minus from S&P Global and an A3 from Moody’s. 

In the first nine months of 2024, the company recorded total written premiums of SR1.94 billion ($520 million), with a compound annual growth rate of 17 percent over the past five years. 

The investment aligns with PIF’s broader strategy under Vision 2030 to foster economic diversification and create partnerships that promote local content. 

The fund’s strategy, as set out in the PIF Program 2021-2025 — one of the Vision 2030 realization programs — aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector. 

By scaling up Saudi Re’s capacity to meet the rising demand for reinsurance solutions, PIF is contributing to the development of a robust and innovative insurance ecosystem in Saudi Arabia. 


Abu Dhabi wealth fund seeks full ownership of Aramex

Abu Dhabi wealth fund seeks full ownership of Aramex
Updated 13 January 2025
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Abu Dhabi wealth fund seeks full ownership of Aramex

Abu Dhabi wealth fund seeks full ownership of Aramex
  • ADQ, through its subsidiary Q Logistics, makes a conditional cash offer

JEDDAH: Abu Dhabi’s sovereign wealth fund has submitted a cash offer that will see it acquire 100 percent of Aramex’s shares, according to an announcement made by the logistics company on Monday.

The offer, which is conditional, comes from Q Logistics Holding LLC, a fully owned subsidiary of ADQ. It targets the portion of Aramex’s issued and paid-up share capital that is not already owned by Abu Dhabi Ports Co.

ADQ was established in 2018 and has a broad portfolio of domestic assets, including Abu Dhabi state carrier Etihad Airways and Abu Dhabi Ports Co., through which it holds a 22.69 percent stake in Aramex.

Aramex confirmed that the proposal will be presented to its board of directors. The company also stated that it will adhere to the required procedures in accordance with the decision of the chairman of the Securities and Commodities Authority regarding the Rules of Acquisition and Merger of Public Joint Stock Companies. 

Following the acquisition offer, Aramex’s shares opened at 2.65 dirhams ($0.72), up from the previous close of 2.31 dirhams. 

In its statement, Aramex noted that shareholders, excluding Abu Dhabi Ports Co., would receive 3 dirhams per share in cash. This offer represents a 33 percent premium over the closing share price of 2.25 dirhams as of Jan. 9. Furthermore, the offer price is a 35 percent premium over the one-month volume-weighted average price of 2.23 dirhams per share.

The company also stated that it would provide further updates on any material developments related to the offer.

In a separate announcement on Jan. 8, Aramex revealed a major step in its efforts to decarbonize logistics in the oil and gas sector. 

The company launched its first commercial deployment of electric trucks and charging solutions in the UAE, in partnership with Admiral Mobility, a local electric vehicle solutions provider. The new fleet includes eight-tonne Farizon electric trucks, each equipped with a 162 kWh battery, certified for use in both the UAE and Saudi Arabia.

This initiative aligns with Aramex’s broader strategy to offer sustainable logistics solutions to its clients while reducing the environmental impact of industrial supply chains. 

The company emphasized that the electric trucks will specifically benefit its oil and gas sector clients by offering efficient and eco-friendly transportation options. Aramex remains committed to achieving carbon neutrality by 2030 and net-zero emissions by 2050.


Saudi banking sector boosted by flurry of debt, sukuk issuances

Saudi banking sector boosted by flurry of debt, sukuk issuances
Updated 13 January 2025
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Saudi banking sector boosted by flurry of debt, sukuk issuances

Saudi banking sector boosted by flurry of debt, sukuk issuances
  • Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are among the key players
  • CMA’s strategy seeks to expand the debt instruments market to 24.1% of GDP by 2025

RIYADH: Saudi Arabia’s banking sector is experiencing a surge in activity in debt and sukuk markets as leading financial institutions move to strengthen their capital bases and fund strategic growth initiatives. 

Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are among the key players announcing substantial issuances to tap local and international investors.

This wave in activity supports the Capital Market Authority’s objective of transforming the Kingdom’s investment market into a key pillar of the its economy, as outlined in Vision 2030. The plan emphasizes expanding financing options, promoting funding opportunities, and attracting international investors.

Al Rajhi Bank unveiled plans to issue US dollar-denominated additional Tier 1 capital sustainable sukuk under its international sukuk program established in April. 

The issuance, approved by the bank’s board in March, will be executed through a special purpose vehicle and offered to eligible investors both within Saudi Arabia and abroad, according to a statement on the Saudi stock exchange.

The bank has enlisted a consortium of leading financial institutions, including Citigroup, HSBC, and Goldman Sachs, as joint lead managers and bookrunners for the proposed issuance. 

Banque Saudi Fransi similarly announced its intention to issue US dollar-denominated certificates under its Trust Certificate Issuance Program. The initiative follows a board resolution granting executive management the authority to oversee the program and carry out issuances as needed. 

“The issuance is expected to be through a special purpose vehicle and by way of an offer to eligible investors in the Kingdom of Saudi Arabia and internationally,” a statement said.

HSBC will serve as global coordinator, and several prominent institutions, including Japanese-based bank holding company Mizuho and Saudi Fransi Capital, acting as joint lead managers. 

Meanwhile, Arab National Bank has opted for a Saudi Riyal-denominated additional Tier 1 capital sukuk. 

The private placement, valued at SR11.25 billion ($2.9 billion), aims to bolster the bank’s capital base while supporting general corporate purposes. HSBC Saudi Arabia and ANB Capital Co. have been appointed as joint lead managers for the issuance. 

The developments highlight the growing momentum in the Kingdom’s financial markets as banks look to diversify funding sources and enhance their capital adequacy. 

By prioritizing sustainable finance and investor protection, Saudi Arabia is aligning with international standards and leveraging its leadership in Islamic finance to attract a broader range of investors.

The CMA’s strategy seeks to expand the debt instruments market to 24.1 percent of gross domestic product by 2025 by implementing regulatory reforms, improving market accessibility, and streamlining issuance processes.