The Gulf’s advantage in the next AI chapter

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The Gulf’s advantage in the next AI chapter

The Gulf’s advantage in the next AI chapter
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The seismic shift in global technology markets carries a message the region already seems to understand. When DeepSeek demonstrated that it could build cutting-edge AI models for just $5.6 million using older hardware, it did not just blow a hole in Nvidia’s stock price — it validated the Gulf’s distinctive path to technological leadership.

Let me explain why investments like the $100 billion AI initiative of Saudi Arabia’s Public Investment Fund might be more prescient than people realize.

The conventional wisdom about AI has always hinged on scale — like a skyscraper reaching ever higher into the clouds, each level demanding more investment, more power, more computing resources. But DeepSeek’s breakthrough reveals a different architectural possibility entirely: AI development is more akin to a suspension bridge, where elegance of design trumps sheer mass of materials.

This paradigm shift mirrors the Gulf’s transformation of its financial sector. Just as Dubai and Abu Dhabi upended traditional notions of wealth management — proving that Wall Street was not the only path to sophisticated investment strategies — the region now stands poised to reimagine AI development. The same strategic thinking that turned hydrocarbon wealth into world-class sovereign wealth funds could now reshape the future of AI.

The whispered conversations in Davos’ hushed hotel lounges tell the same story: The era of computational brute force is ending. Success in AI no longer depends on who can build the biggest data centers or deploy the most powerful chips. Instead, victory will go to those who can execute most skilfully, who can find the smart solution hiding in plain sight.

Here is what is really happening: The Gulf states’ traditional strengths — political stability, capital efficiency and regulatory agility — are suddenly looking like decisive advantages in the AI race. While Western nations grapple with complex AI regulation and China faces export controls, the region can chart a middle path — maintaining high standards while moving quickly to implement new technologies.

Think about how this mirrors patterns in the region’s history. Just as Dubai transformed itself into a global business hub — not by competing head-on with established centers, but by creating unique advantages through regulatory innovation and strategic positioning — Saudi Arabia now has the opportunity to do the same with AI.

The Gulf states’ traditional strengths — political stability, capital efficiency and regulatory agility — are suddenly looking like decisive advantages in the AI race.

Adrian Monck

Consider this: While Silicon Valley was building AI models that required the equivalent of a small country’s power grid to run, DeepSeek proved you could achieve similar results with clever engineering and elegant execution. It is as if someone just proved you could build a Formula 1 car using last year’s parts and still make the podium.

The implications for Saudi Arabia’s strategy are profound. Its $100 billion initiative is not simply replicating Silicon Valley’s infrastructure-heavy model — it is creating innovation ecosystems, where computational efficiency matters more than raw power. It is exactly what South Korea did with semiconductors in the 1990s, focusing on clever design rather than industrial-scale manufacturing.

Three key priorities emerge. First, leverage regulatory flexibility to create AI development zones that attract global talent while maintaining high ethical standards. Success with economic cities provides a proven model.

Second, educate to innovate. In Abu Dhabi they are building the “Stanford of the Middle East,” positioning for global AI research leadership. The Gulf’s traditional role as a bridge between East and West takes on new significance in the AI education age.

Third, think ecosystem, not infrastructure. The most valuable part of AI investment will not be the hardware you buy — it will be the innovation networks you create.

The market’s dramatic reaction to DeepSeek’s breakthrough reveals another advantage: timing. As the industry shifts from a focus on scale to a focus on efficiency, the region can leapfrog the massive sunk costs of earlier infrastructure investments.

We are entering the “Age of AI Arbitrage,” where clever implementation beats computational might. It is a world of quantum innovation where technological advantage can materialize anywhere through sophisticated thinking rather than massive investment.

Sometimes the most important revolutions are not about new capabilities, but about fundamentally new ways of thinking about old problems. The Gulf states have already proven they can transform natural resources into lasting economic advantage. Now they have the chance to do it again — this time with artificial intelligence.

• Adrian Monck writes a weekly newsletter, Seven Things. He is senior adviser to the Mohamed bin Zayed University of Artificial Intelligence and a former managing director of WEF.

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

Calls mount for lifting of Western sanctions on Syria

Calls mount for lifting of Western sanctions on Syria
Updated 12 min 24 sec ago
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Calls mount for lifting of Western sanctions on Syria

Calls mount for lifting of Western sanctions on Syria
  • Human Rights Watch: Country ‘in desperate need of reconstruction and Syrians are struggling to survive’
  • Current sanctions were imposed on regime of Bashar Assad who was deposed in December

LONDON: Sanctions imposed on the regime of former Syrian President Bashar Assad by the West are harming the country’s recovery, Human Rights Watch said on Tuesday.

Sanctions put in place by the US, the UK, the EU and others are “hindering reconstruction efforts and exacerbating the suffering of millions of Syrians,” and have no clear removal mechanism, HRW added.

Hiba Zayadin, HRW’s senior Syria researcher, said the country “is in desperate need of reconstruction and Syrians are struggling to survive. With the collapse of the former government, broad sanctions now stand as a major obstacle to restoring essential services such as health care, water, electricity, and education.”

HRW said the country’s long-running civil war has left its economy and infrastructure devastated, with millions of people having fled and 90 percent of the remaining population living in poverty.

Around 13 million are unable to access sufficient food, and 16.5 million are reliant on humanitarian aid.

The organization said sanctions, some of which have been in place for almost half a century but which were ramped up by the West in 2011 after the outbreak of the conflict, are making it harder to alleviate this suffering and to deliver aid despite humanitarian exemptions.

HRW said sanctions should be lifted to allow “access to basic rights,” including “restoring Syria’s access to global financial systems, ending trade restrictions on essential goods, addressing energy sanctions to ensure access to fuel and electricity, and providing clear legal assurances to financial institutions and businesses to mitigate the chilling effect of overcompliance.”

US sanctions hinder nearly all trade and financial transactions with Syria, while the Caesar Act sanctions foreign companies doing business with the government, “particularly in oil and gas, construction, and engineering,” HRW said.

EU and UK sanctions focus largely on Syrian crude oil exports, investments, and the activities of Syrian banks.

Western powers have proposed changes to the sanctions regime since Assad’s ouster in December, but the head of the Syrian Arab Republic’s Investment Agency, Ayman Hamawiye, said earlier this year that the only concrete changes — tweaks to US sanctions affecting energy remittance payments — were “inadequate” so far. 

“Rather than using broad sectoral sanctions as leverage for shifting political objectives, Western governments should recognize their direct harm to civilians and take meaningful steps to lift restrictions that impede access to basic rights,” Zayadin said.

“A piecemeal approach of temporary exemptions and limited waivers is not enough. Sanctions that harm civilians should immediately be lifted, not refined.”

HRW said Syria requires at least $250 billion to begin its reconstruction, focusing on essential infrastructure.

It highlighted the crumbling water network and overwhelmed healthcare system as two examples in desperate need of financial help, as well as the education sector, with around 2 million Syrian children out of fulltime school.

HRW said sanctions should not “have a disproportionately negative impact on human rights or create unnecessary suffering,” and “should not be punitive, but should instead be designed to deter and correct human rights abuses.”

It added: “To be effective, sanctions must be tied to clear, measurable, and attainable conditions for their removal, with regular monitoring to assess progress.

“The Caesar Act in the United States was designed to punish the Assad government, but in a post-Assad world, its broad and indefinite restrictions risk harming civilians without advancing clear human rights objectives.”


Arab League summit on Gaza postponed to March 4: Egypt

Arab League summit on Gaza postponed to March 4: Egypt
Updated 15 min 14 sec ago
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Arab League summit on Gaza postponed to March 4: Egypt

Arab League summit on Gaza postponed to March 4: Egypt
  • The meeting was called in response to US President Donald Trump’s proposal to take over the war-battered Gaza Strip

CAIRO: An extraordinary Arab League meeting on Gaza, initially set for next week, has been postponed to March 4, host Egypt said on Tuesday.
The Egyptian foreign ministry said the new date was agreed with Arab League members as part of “substantive and logistical preparations” for the summit.
The meeting was called in response to US President Donald Trump’s proposal to take over the war-battered Gaza Strip and move its Palestinian inhabitants elsewhere, including to Egypt and Jordan.
On Thursday, Saudi Arabia is set to host the leaders of Egypt, Jordan, Qatar and the United Arab Emirates to present their own plan for Gaza’s reconstruction while ensuring that Palestinians remain on their land.
Trump’s Gaza plan has sparked outcry across the Arab world, prompting a rare show of unity among Arab nations to block it.


Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy

Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy
Updated 20 min 13 sec ago
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Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy

Skipper Rizwan urges Pakistan to enjoy ICC Champions Trophy
  • Pakistan had been due to host the tournament in 2008 but was thrown into cricketing isolation by a security crisis
  • Major teams have toured Pakistan as security improved, opening way for cricket-mad nation to stage the tournament.

KARACHI: Pakistan skipper Mohammad Rizwan said on Tuesday the Champions Trophy would be a “historic occasion” for the country, a day before the hosts kick the tournament off against New Zealand.
The Champions Trophy is the first major cricket event hosted by Pakistan in nearly three decades and is regarded as second only to the World Cup in the one-day game.
“A global event has come to Pakistan after 29 years so I think the whole nation should enjoy this historic occasion,” Rizwan told a news conference on the eve of the tournament, which runs until March 9.
Pakistan had been due to host the tournament in 2008 but was thrown into cricketing isolation by a security crisis as violence spilled over from the long-running war in neighboring Afghanistan.
Gunmen then attacked a bus carrying Sri Lanka’s team in Lahore the following year, wounding several players and killing eight policemen and civilians.
However, major teams have toured Pakistan in the past five years as security improved, opening the way for the cricket-mad nation to stage the tournament.
“Pakistan has suffered enough and for a long time, but we have also won during this phase like the 2017 Champions Trophy and the 2009 Twenty20 World Cup,” Rizwan said.
Still, the build-up has not been without problems after neighbors and arch-rivals India refused to play in Pakistan over long-standing political tensions. India will instead play their matches in Dubai.
Pakistan’s opponents in the tournament opener in Karachi beat them twice this month during a tri-series event that included South Africa.
“There shouldn’t be any doubts on our performance,” Rizwan said. “We may not have played on our abilities but we all want to win the event for the country and people.”
Rizwan hoped to have pace bowler Haris Rauf on the pitch after he suffered chest muscle strain in the match against New Zealand in Lahore last week.
“Haris bowled 80 percent yesterday and today he is bowling at his full rhythm and told us that he is not feeling any discomfort, so I hope he is fully fit,” Rizwan said.


Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Updated 23 min 4 sec ago
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Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Saudi Tadawul eyes strong growth amid rising listings and foreign investment
  • Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
  • It is also expanding its footprint in data innovation and commodity markets

RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group. 

Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity. 

Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Saudi Arabia’s broader economic goals of diversifying its financial sector and attracting international capital. 

“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.” 

Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.” 

Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge. 

“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said. 

The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Saudi Arabia’s rapidly evolving capital market intersects with global finance. 

Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem. 

“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said. 

With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets. 


Leading civil society groups call on F-35 partner countries to end supplies to Israel

Leading civil society groups call on F-35 partner countries to end supplies to Israel
Updated 35 min ago
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Leading civil society groups call on F-35 partner countries to end supplies to Israel

Leading civil society groups call on F-35 partner countries to end supplies to Israel
  • Over 200 organizations send letter to government ministers in US, UK, Australia, Canada, elsewhere
  • ‘The past 15 months have illustrated that Israel is not committed to complying with international law’

LONDON: More than 200 civil society groups worldwide have urged countries involved in the F-35 jet program to halt arms transfers to Israel over fears of humanitarian law violations, The Guardian reported on Tuesday.

It comes as the war in Gaza reached 500 days, with the F-35 jet being used extensively by the Israeli Air Force to conduct bombing operations throughout the conflict.

The organizations signed a letter that was sent on Monday to government ministers in the UK, the US, Australia, Canada, Denmark, Italy, the Netherlands and Norway.

The 232 signatories come from the countries involved in production of the jet, as well as Jordan, Lebanon, India, Belgium, Switzerland, Ireland and elsewhere.

Leading charities such as Oxfam, Amnesty International and Human Rights Watch signed the letter, which was coordinated by the Campaign Against Arms Trade.

It says: “The past 15 months have illustrated with devastating clarity that Israel is not committed to complying with international law.

“Partners to the F-35 program have individually and collectively failed to prevent these jets from being used to commit serious violations of international law by Israel.

“States have either been unwilling to observe their international legal obligations and/or claimed that the structure of the F-35 program means that it is not possible to apply arms controls to any end-user, making the entire program incompatible with international law.”

Israel is part of the international agreement behind the F-35 program. British firms supply 15 percent of the parts used in the jet, which is produced by a global consortium led by US defense firm Lockheed Martin.

Governments including those of the US, the UK, Australia and Canada have faced legal action over their involvement in granting arms licenses to Israel that include F-35 components.

The UK in September suspended 30 out of 350 arms export licenses to Israel over fears that the weapons may be used to violate international humanitarian law.

But components of the F-35 were exempt from the suspension for reasons of “international peace and security.”

All countries in the F-35 program are parties to the arms trade treaty, except the US, which is a signatory.

The treaty requires the prevention of military transfers where a risk of humanitarian law violations exists.

More than 48,000 people have been killed in Gaza since October 2023, with some researchers saying the death toll could be up to 40 percent higher than the number recorded by the enclave’s Health Ministry.

Katie Fallon, advocacy manager at CAAT, said: “The F-35 jet program is emblematic of the West’s complicity in Israel’s crimes against Palestinians.

“These jets were instrumental in Israel’s 466-day bombardment of Gaza, in crimes that include war crimes, crimes against humanity and genocide.

“Since the limited ceasefire the US government, and lead partner to the F-35 program, has threatened Gaza with mass ethnic cleansing and forced displacement.

“This program gives material and political consent from all western partners, including the UK, for these crimes to continue.”