AI as a key economic driver for Saudi Arabia

AI as a key economic driver for Saudi Arabia

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The Kingdom of Saudi Arabia is at the crossover of an economic transformation driven by innovations and technology advancement in artificial intelligence. As the Kingdom continues to diversify or shift from its previous oil dependency, AI offers a significant opportunity to create jobs, bolster productivity, and enhance overall economic output and gross domestic product growth. By 2030, AI is estimated to contribute 12 percent to Saudi Arabia’s GDP, highlighting the nation’s commitment to leveraging AI for sustainable economic development.

The Kingdom’s Vision 2030 framework focuses on reducing the nation’s reliance on oil through fostering technology-led industries with cutting-edge innovations. AI is vital and plays a significant role in this transition, especially by enhancing productivity in various sectors and facilitating the creation of a knowledge-based economy. A recent study by the ITU indicates that AI technologies are likely to contribute more than $13 trillion to the global economy by 2030, and Saudi Arabia has the potential to capture a giant share of this growth.

Recently, Saudi Arabia’s investments in digital infrastructure have given the Kingdom a stronger foundation for AI adoption. For example, World Bank reports indicate that Saudi Arabia’s digital economy projects, such as the National Strategy for Digital Transformation, are laying a solid foundation for the country to adopt cutting-edge technologies across its sectors.

The adoption of AI technologies presents a conducive environment to create jobs, especially in high-skilled sectors. AI’s cutting-edge technologies can foster the creation of new markets and services, which are critical in generating employment opportunities. A report by the IMF indicates that AI has great potential to create a positive effect on job creation, and this can be done through enhancing productivity and the automation of routine tasks.

Whereas AI technologies present many opportunities for countries to foster their economic growth, some challenges cannot be overlooked.

Hamad S. Alshehab, Hassan M. Alzain

Like never before, the adoption of AI in Saudi Arabia is likely to increase the demand for high-skilled workers in various fields. The country is focusing on training and education programs that aim at educating the workforce with the skills needed to ensure job creation and new opportunities. This is evident through the remarkable achievement of training more than 628,000 beginners in one year and offering specialized programs for about 7,625 experts in data and AI. The report by the World Economic Forum indicates that 75 percent of organizations across the world plan to adopt AI, and this is likely to create jobs, but also displacements. Despite the challenges that are likely to come with the adoption of AI, the Kingdom has the opportunity to mitigate them by reskilling its workforce for emerging roles in the modern world.

AI technologies are expected to enhance productivity in the country, through the automation of repetitive tasks, improving decision-making processes as well as optimizing supply chains. Research from the ITU says that AI is poised to boost global GDP by more than 16 percent by 2030. This is largely because of the implementation of automation and innovation. Thus, countries like Saudi Arabia are positioned to utilize AI in various sectors, including financial services, logistics and even manufacturing. For instance, the use of AI technologies in logistics has the potential to reduce costs, and at the same time, improve delivery time.

The government has been working proactively to create a conducive environment for new technologies such as AI. Programs such as the Saudi Data and AI Authority, and the National Strategy for AI, highlight the Kingdom’s commitment to take advantage of AI, and position itself to rank among the top 10 global leaders in data and AI by 2030. The country has created better grounds for international investments by fostering innovation, placing Saudi Arabia at the forefront of the global AI race, as evidenced by the $1.7 billion in total funds attracted by Saudi AI companies in 2023.

Whereas AI technologies present many opportunities for countries to foster their economic growth, some challenges cannot be overlooked. Thus, Saudi Arabia must address these challenges to utilize the full potential of AI. One of the critical challenges has been job displacement, especially in the low-skilled sectors. Although this might be the case, the IMF indicates that AI’s impact on job displacement is not entirely negative. For example, by implementing automation of routine tasks, AI allows the human workforce to focus on high-end activities, which can help countries increase productivity.

AI has already proved to be a major economic driver for countries like Saudi Arabia. As the Kingdom continues its journey toward economic diversification, AI technologies play a critical role. By creating new job opportunities, enhancing productivity and fostering innovation, AI is poised to increase the Kingdom’s GDP growth soon. However, to be a global leader in this revolutionary AI era, Saudi Arabia must implement the right policies to allow better investments for a knowledge-based economy.

  • Hassan M. Alzain is pursuing a master’s degree in environmental management at Yale University. He led the Environmental Science, Sustainability and Policy Group at Aramco’s Environmental Protection, and is experienced in areas such as sustainability reporting, climate policy, environmental technology and data assurance.
  • Hamad S. Alshehab is pursuing a master’s degree in finance at London Business School. He led the Strategy, Finance & Governance at Aramco’s Innovation & Product Development Center (LAB7) and is experienced in areas including control systems, digital transformation, entrepreneurship and innovation.
Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Between bomb craters: Taxis stuck on war-hit Lebanon-Syria border

Between bomb craters: Taxis stuck on war-hit Lebanon-Syria border
Updated 1 min 10 sec ago
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Between bomb craters: Taxis stuck on war-hit Lebanon-Syria border

Between bomb craters: Taxis stuck on war-hit Lebanon-Syria border

MASNAA, Lebanon: Stuck in no man’s land on the war-hit Lebanon-Syria border, cab driver Fadi Slika now scrapes a living ferrying passengers between two deep craters left by Israeli air strikes.

The journey is just 2 km, but Slika has no other choice — his taxi is his only source of income.

“My car is stuck between craters: I can’t reach Lebanon or return to Syria. Meanwhile, we’re under threat of (Israeli) bombardment,” said the 56-year-old.

“I work and sleep here between the two holes,” he said.

A dual Lebanese-Syrian national, Slika has been living in his car, refusing to abandon it when it broke down until a mechanic brought a new engine.

His taxi is one of the few that has been operating between the two craters since Israeli strikes in October effectively blocked traffic on the Masnaa crossing.

The bombed area has become a boon for drivers of tuk-tuks, who can navigate the craters easily. 

A makeshift stall, the Al-Joura (pit in Arabic) rest house, and a shop are set up nearby.

Slika went for 12 days without work while waiting for his taxi to be fixed. The car has become his home. A warm blanket covers its rear seats against eastern Lebanon’s cold winters, and a big bag of pita bread sits on the passenger side.

Before being stranded, Slika made about $100 for trips from Beirut to Damascus.

Now, an average fare between the craters is just $5.50 each way, though he said he charged more.

On Sept. 23, Israel intensified its aerial bombing of Lebanon and later sent in ground troops, nearly a year after Hezbollah initiated limited exchanges of fire in support of Hamas amid the Gaza war.

Since then, Israel has bombed several land crossings with Syria out of service. 

It accuses Hezbollah of using what are key routes for people fleeing the war in Lebanon to transfer weapons from Syria.

Amid the hardship of the conflict, more than 610,000 people have fled from Lebanon to Syria, mostly Syrians, according to Lebanese authorities.

Undeterred by attacks, travelers still trickle through Masnaa, traversing the two craters that measure about 10 meters deep and 30 meters wide.

On the other side of the road, Khaled Khatib, 46, was fixing his taxi, its tires splattered with mud and hood coated in dust.

“After the first strike, I drove from Syria and parked my car before the crater. When the second strike hit, I got stuck between the two holes,” he said, sweat beading as he looked under the hood.

“We used to drive people from Damascus to Beirut. Now, we take them from one crater to another.”

Khatib doesn’t charge passengers facing tough times, he said, adding he had been displaced from southern Beirut, hammered by Israeli raids since September. He moved back to his hometown near the Masnaa crossing.

Despite harsh times, a sense of camaraderie reigns.

The drivers “became like brothers. We eat together at the small stall every day ... and we help each other fix our cars,” he said.

Mohamed Yassin moved his coffee stall from the Masnaa crossing closer to the pit after the strike, offering breakfast, lunch, and coffee. “We try to help people as much as possible,” he said.

Farther from the Lebanese border, travelers crossed the largest of the two crevasses, wearing plastic coverings on their shoes to avoid slipping in the mud.

A cab driver on a mound called out, “Taxi to Damascus!” while tuk-tuks and trucks ferried passengers, bags, and mattresses across.

Nearby, Aida Awda Mubarak, a Syrian mother of six, haggled with a tuk-tuk driver over the $1 fare.

The 52-year-old said she was out of work and needed to see her son after the east Lebanon town where he lives was hit by Israeli strikes.

“Sometimes we just can’t afford to pay for a tuk-tuk or a cab,” she said.


Italian street food festival highlights nation’s rich taste and culinary flavors

Italian street food festival highlights nation’s rich taste and culinary flavors
Updated 5 min 50 sec ago
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Italian street food festival highlights nation’s rich taste and culinary flavors

Italian street food festival highlights nation’s rich taste and culinary flavors

JEDDAH: The Italian Consulate General in Jeddah hosted on Wednesday night a unique event celebrating the richness and uniqueness of Italian products and flavors on the occasion of the ninth edition of the Week of Italian Cuisine in the World. 

The event is being celebrated all over the globe from Nov. 16-22 by the Italian Ministry of Foreign Affairs and the Italian Ministry of Agriculture as part of their drive to promote the beauty and quality of Italian gastronomy.

Leonardo Costa, the Italian consul general in Jeddah, said: “We are glad to hold this Italian food street festival in the framework of the 9th Week of Italian Cuisine in the World celebrating Italian food culture. The theme for this year’s events is ‘Mediterranean Diet: Traditional Cuisine and Healthy Food,’ which is not a list of healthy food but a lifestyle.”

He added: “All the communities of the Mediterranean Sea share the same idea of hospitality and friendship. All concepts that fully applied to the great generosity and hospitality to the Saudi people and their way of conceiving food.”

Held at Al-Basateen Compound, the Italian Consulate General in Jeddah set up an elaborate street food scene around the pool area, ranging from big local Italian brands from shops, supermarkets, restaurants, cafes, and hotels in Jeddah with the attendance of guests drawn from the diplomatic corps, journalists, Italian expatriates, Saudi guests, the business community, and other selected food enthusiasts.

The festival contained multiple food stalls displayed by the sponsors and participants such as Danub, Lallo restaurant, Assila hotel, Margherita KSA, Montana water by Sharbatly, Ferrero, Loacker, and other brands, where everyone showcased different distinctive Italian delicacies.

Music was also played for the guests by DJ Ahmed Can.

Saudi businessman Mohammed Al-Zahrani — who became fascinated by Italian coffee during his visits to Catanzaro, the capital of the Calabria region in Italy, is the founder of Dell’Oro Store. He told Arab News how he turned his passion into a business.

“I am glad to be part of the ninth Week of Italian Cuisine in the World for the first time, and I am here to promote our coffee,” he added.


Pep Guardiola signs a 2-year contract extension at Manchester City

Pep Guardiola signs a 2-year contract extension at Manchester City
Updated 1 min 55 sec ago
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Pep Guardiola signs a 2-year contract extension at Manchester City

Pep Guardiola signs a 2-year contract extension at Manchester City
  • The Catalan coach has overseen a period of unprecedented dominance since joining City in 2016
  • “I have a really special feeling for this football club,” he said

MANCHESTER, England: Pep Guardiola has signed a two-year contract extension to stay at Manchester City, the club announced Thursday.
The City manager’s contract was due to expire at the end of this season, but Guardiola ended speculation about his future by agreeing to a deal that would bring him to 11 seasons in Manchester.
The Catalan coach has overseen a period of unprecedented dominance since joining City in 2016. He has gone on to win six Premier League titles in seven years and also lifted the Champions League among 15 major trophies at the club.


“Manchester City means so much to me. This is my ninth season here. We have experienced so many amazing times together. I have a really special feeling for this football club,” he said.
“That is why I am so happy to be staying for another two more seasons.”
Under Guardiola, City became the first team to win four-straight English league titles. He also led City to the treble in 2023, winning the Premier League, Champions League and FA Cup in one season — matching Manchester United’s achievement in 1999.
“I have said this many times before,” Guardiola continued in his statement, “but I have everything a manager could ever wish for, and I appreciate that so much. Hopefully now we can add more trophies to the ones we have already won. That will be my focus.”
Guardiola has managed City for longer than any his former clubs, having spent four years at Barcelona and three at Bayern Munich.


Spanish aerobatic pilot Castor Fantoba puts on a spectacular air display in Riyadh

Spanish aerobatic pilot Castor Fantoba puts on a spectacular air display in Riyadh
Updated 16 min 16 sec ago
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Spanish aerobatic pilot Castor Fantoba puts on a spectacular air display in Riyadh

Spanish aerobatic pilot Castor Fantoba puts on a spectacular air display in Riyadh
  • World-class pilot soars high at Sand & Fun event

RIYADH: A Spanish world-class powered aerobatic pilot on Tuesday put on a thrilling aerobatic display filled with loops, rolls, spins, dives and climbs at the Sand & Fun event at Al-Thumamah airport, Riyadh. 

Organized by the Saudi General Aviation, the event runs from Nov. 19-23. 

Castor Fantoba’s performance was one of 10 SkyVentures at Sand & Fun’s series of airshows.

In a sitdown interview with Arab News, Fantoba described how his passion for aviation began and what it takes to become a world-class aerobatic pilot. 

As a child, Fantoba lived in the Spanish region of Navarra, where he watched small planes flying in the sky.

“Every child is looking into the blue ... Near my village there was an older field and eventually there were small planes doing tours and I was always stuck to the glass of the car, looking into the window trying to see if there was something around. I think it was that simple thing that marked my life.”

After secondary school, Fantoba developed a deeper admiration for aviation, which led to him pursuing a career as an engineer. 

Fantoba graduated as an aeronautical engineer and gained his extensive flying experience in areas such as aerial advertising, skywriting, crop-dusting and water-bombing.

He then decided to take a different route and become a pilot, after working for several years in aircraft maintenance. 

Today, Fantoba is an airline captain qualified to fly Boeing 737, 757 and 767s, powered aerobatics in the world-renowned Sukhoi Su-26M and is also a certified flight instructor for ultralight motorized gliders, private pilot licence training, and powered aerobatics.

To prepare for his airshows, Fantoba has a precise regimen of physical training and technical training coached by retired pilot and former member of the Soviet and Russian national aerobatic team, Nikolai Nikituk, who is widely recognized as one of the best pilots in the history of aerobatics. 

“He (Nikituk) is the one who is pushing us and modeling us to arrive at that point in which we will compete and try to win.”

During airshows, pilots take turns performing and on some days the wind could work against them. In moments like those, endurance is key, a practice taught by Nikituk.

“If you control your stress, you get focused and you don’t get nervous and lose energy.” 

Aerobatic pilots draw geometrical figures in the sky using a unique composition of sequences. When performing advanced aerial maneuvers, pilots can experience a range of gravitational forces.

Aerobatic pilots are trained to handle these forces by tensing their muscles to maintain blood flow to the brain and avoid blacking out.

Fantoba said dealing with negative Gz force, when pushing a plane over into a dive, took him 10 years of practice to perfect it. 

“After 10 years of training, (previously) I was not able to get the good rotation or transition, but this year I got it so this for me is the most satisfying.”

To avoid problems in equilibrium, prevent dizziness and fade-out, Fantoba said a lot mental focus, physical conditioning, and training are required. 

“You need to do exactly what you are told to do in a sequence. A sequence is composed of about 14 figures that are very complex with rotations in all directions.” 

Fantoba spoke of an experience when he blacked out during a positive Gz flight. “I remember I was beginning a training camp and I was really relaxed during the beginning of the season ... I was not pushing my body … I remember I was going up and then a voice was calling me ‘Castor, do you hear me?’ (on the radio) and I saw all blue and suddenly realized I was flying.”

Pilots begin with 10 points and lose 1 point per 5 degrees of deviation, so precision is vital to a successful airshow. Pilots usually score an average five points, but Fantoba’s attention to detail allowed him to score 8.3 points in the previous World Championship. 

Fantoba encourages individuals to try flying. “With normal health, you can fly ... you have fantastic aircraft here in Saudi Arabia … call them (organizations) and ask them ‘how can I become a pilot?’ It’s easy and you will discover an absolute new world.”

“Aerobatics and generally all air sports, it does not matter if you are a man or woman, it’s based on skill … in aerobatics we do not have separation.”

Fantoba has numerous achievements to his credit. 

He was a runner-up in the 2022 World Team Championship, runner-up in freestyle at the 2019 World Championship; three bronze medals at the 2017 World Cup; double bronze medal in the 2015 World Cup, bronze medal in Classic and Freestyle in the 2016 European Championship, Absolute European Champion 2014, and nine times Absolute Spanish Champion.

He has been officially recognized as a high level athlete by the Higher Sports Council since 2005. He has bagged more than 50 medals in his sporting career, six medals in a single top-category competition (European Aerobatic Championships 2014). He has won 30 FAI (world governing body for air sports) medals, including six golds.


Man arrested for transporting nine border security violators in Jazan

Man arrested for transporting nine border security violators in Jazan
Updated 24 min 24 sec ago
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Man arrested for transporting nine border security violators in Jazan

Man arrested for transporting nine border security violators in Jazan

JAZAN: Authorities in Jazan arrested a citizen for transporting nine border security violators of Yemeni and Ethiopian nationalities. Legal procedures were carried out, and the violators were handed over to the authorities before being transferred to the Public Prosecution.

Authorities have warned that anyone who facilitates the entry of border security violators into the Kingdom, transports them, provides them with shelter, or offers any form of assistance or service, will face severe penalties. These include imprisonment of up to 15 years, fines of up to SR1 million ($266,318), confiscation of any vehicles or properties used in the offense, and public defamation.

Meanwhile, while enforcing environmental regulations in the King Abdulaziz Royal Reserve, field patrols of the Special Forces for Environmental Security arrested a man for illegal hunting in a prohibited area. He was found with an air rifle and three trapped wild animals. Legal measures were taken, and he was referred to the authorities for further action.