Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report

Artificial intelligence is allowing robots to perform increasingly sophisticated tasks. (AFP)
Updated 12 February 2018

Artificial Intelligence could add $320bn to GCC and Egypt economies by 2030: report

LONDON: Artificial intelligence is set to swell the GCC and Egypt’s economies to the tune of $320 billion by 2030, according to a report.
Globally, the economic uplift could be to the magnitude of $15.7 trillion, more than the current output of China and India combined, according to a report by professional services firm PwC.
Within that increase, $6.6 trillion is likely to come from increased productivity, while $9.1 trillion is likely to come from benefits to consumers.
Artificial intelligence (AI) is a collective term for computer systems that can sense their environment, think, learn, and take action in response to what they are sensing and their objectives. AI is rapidly evolving, with current technology including autopilots, digital assistants and chatbots.
In the economies of the GCC and Egypt, the UAE and Saudi Arabia are expected to particularly benefit from the rise of AI, with PwC predicting it could contribute to almost 14 percent of UAE GDP by 2030. This is followed by KSA at 12.4 percent, the “GCC4” (Bahrain, Kuwait, Oman and Qatar) at 8.2 percent, and lastly by Egypt at 7.7 percent.
The report reveals there are untapped opportunities that could increase the impact of AI on the Middle East’s economies, if governments continue to push the boundaries of innovation and the implementation of AI across businesses and sectors between now and 2030.
“The future strategy of governments in the region, particularly in the UAE and KSA, indicate a strong push toward the development of AI technologies, for example Vision 2030 in KSA and the government’s AI Strategy in the UAE,” Richard Boxshall, senior economist at PwC Middle East, told Arab News.
The first wave of the AI revolution consists of largely known technological innovations that are either adoption-ready or are currently being fine-tuned for broader implementation. Beyond 2030, the scope of AI impacting both the economy and society overall will almost certainly increase, so it is important for the Middle East to be strategically placed in order to provide a springboard for the future, PwC said in a statement.
Fears of AI taking over human jobs have been voiced regularly but according to PwC this should not be a concern: “It is likely that in the coming years as AI is developed we will see a shift in the types of jobs performed by humans, but not necessarily a reduction in the number of jobs,” Boxshall said.
In the UAE, AI is at the forefront of the government’s strategic plans, with government representatives at the recent World Economic Forum touting how the country is embracing the technology.
At the sectoral level, the most significant gains in absolute terms are expected in the construction and manufacturing sectors, which are expected to account for almost a third of the entire benefits to the Middle East region, equivalent to almost $100 billion by 2030.


Huawei’s third-quarter revenue jumps 27% as smartphone sales surge

Updated 17 October 2019

Huawei’s third-quarter revenue jumps 27% as smartphone sales surge

  • American companies, significantly disrupting its ability to source key parts
  • Huawei was all but banned by the United States in May from doing business with American companies

SHENZHEN, SHANGHAI: Huawei Technologies Co. Ltd’s third-quarter revenue jumped 27%, driven by a surge in shipments of smartphones launched before a trade blacklisting by the United States expected to hammer its business.
Huawei, the world’s biggest maker of telecom network equipment and the No. 2 manufacturer of smartphones, was all but banned by the United States in May from doing business with American companies, significantly disrupting its ability to source key parts.
The company has been granted a reprieve until November, meaning it will lose access to some technology next month. Huawei has so far mainly sold smartphones that were launched before the ban.
Its newest Mate 30 smartphone — which lacks access to a licensed version of Google’s Android operating system — started sales last month.
Huawei in August said the curbs would hurt less than initially feared, but could still push its smartphone unit’s revenue lower by about $10 billion this year.
The tech giant did not break down third-quarter figures but said on Wednesday revenue for the first three quarters of the year grew 24.4% to 610.8 billion yuan.
Revenue in the quarter ended Sept. 30 rose to 165.29 billion yuan ($23.28 billion) according to Reuters calculations based on previous statements from Huawei.
“Huawei’s overseas shipments bounced back quickly in the third quarter although they are yet to return to pre-US ban levels,” said Nicole Peng, vice president for mobility at consultancy Canalys.
“The Q3 result is truly impressive given the tremendous pressure the company is facing. But it is worth noting that strong shipments were driven by devices launched pre-US ban, and the long-term outlook is still dim,” she added.
The company said it has shipped 185 million smartphones so far this year. Based on the company’s previous statements and estimates from market research firm Strategy Analytics, that indicates a 29% surge in third-quarter smartphone shipments.
Still, growth in the third quarter slowed from the 39% increase the company reported in the first quarter. Huawei did not break out figures for the second quarter either, but has said revenue rose 23.2% in the first half of the year.
“Our continued strong performance in Q3 shows our customers’ trust in Huawei, our technology and services, despite the actions and unfounded allegations against us by some national governments,” Huawei spokesman Joe Kelly told Reuters.
The US government alleges Huawei is a national security risk as its equipment could be used by Beijing to spy. Huawei has repeatedly denied its products pose a security threat.
The company, which is now trying to reduce its reliance on foreign technology, said last month that it has started making 5G base stations without US components.
It is also developing its own mobile operating system as the curbs cut its access to Google’s Android operating system, though analysts are skeptical that Huawei’s Harmony system is yet a viable alternative.
Still, promotions and patriotic purchases have driven Huawei’s smartphone sales in China — surging by a nearly a third compared to a record high in the June quarter — helping it more than offset a shipments slump in the global market.