ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization
ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization /node/2169121/business-economy
ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization
The project will replace ADNOC’s existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network, operated by TAQA’s wholly owned subsidiary, Abu Dhabi Transmission and Despatch Co.
ADNOC, TAQA close $3.8bn deal for clean energy, decarbonization
Updated 25 September 2022
Arab News
RIYADH: Abu Dhabi National Oil Co., and Abu Dhabi National Energy Co., known as TAQA, have finalized a deal for the construction of a $3.8-billion strategic project to power and decarbonize ADNOC’s offshore production operations.
According to a statement, a consortium comprising Korea Electric Power, Kyushu Electric Power Co., and Électricité de France will build, own, operate and transfer its high-voltage direct current sub-sea transmission network in the Middle East and North Africa region.
The statement noted that the KEPCO-led consortium holds a 40 percent stake in the project under a build, own, operate and transfer basis, while ADNOC and TAQA own stakes amounting to 30 percent each.
According to the statement, the full project will be returned to ADNOC after 35 years of operation.
The transmission system will have a total installed capacity of 3.2 GW and will comprise two independent subsea HVDC links and converter stations, the statement added.
The construction of this project is expected to start this year, and commercial operation is expected to commence in 2025.
“ADNOC has once again demonstrated its ability to successfully structure and close a bold and progressive transaction that will help secure our low-carbon future as we intensify our efforts to decarbonize our operations,” said Sultan Al-Jaber, UAE minister of industry and advanced technology and managing director and group CEO of ADNOC.
He added: “As the responsible provider of reliable and low-carbon energy, ADNOC will continue to work with our partners to advance practical and commercially viable solutions as the energy transition partner of choice.”
According to the statement, the development is expected to reduce the carbon footprint of ADNOC’s offshore operations by more than 30 percent.
The project will replace ADNOC’s existing offshore gas turbine generators with more sustainable power sources available on the Abu Dhabi onshore power network, operated by TAQA’s wholly owned subsidiary, Abu Dhabi Transmission and Despatch Co.
Mohamed Alsuwaidi, chairman of Taqa, said: “Reaching financial close is an important milestone for this distinctive project, which will see TAQA providing ADNOC offshore facilities with low-carbon energy securely and efficiently through TRANSCO’s power network system.”
“TAQA continues to showcase how its expertise can be utilized to decarbonize industry through strategic partnerships and bringing value to its stakeholders,” he added.
Saudi Arabia and UAE leading the MENA region in becoming AI hub
Market for the advanced technology in the region will witness a compound annual growth rate of 47.8 percent
Updated 17 sec ago
Arab News
RIYADH: The artificial intelligence market in the Middle East and North Africa region is expected to grow from $500 million in 2020 to $8.4 billion by 2026, according to a new report.
The findings by firm Research and Markets suggests that the market for the advanced technology in the region will witness a compound annual growth rate of 47.8 percent, with Saudi Arabia and the UAE leading from the front.
According to the report, the value of the artificial intelligence market in the UAE alone will reach $1.9 billion by 2026, representing 36.2 percent growth.
Business leaders in the Middle East region also consider AI crucial in the coming years for their operational growth. According to a study conducted by global consultancy firm Proviti Middle East, more than 80 percent of CEOs in the region believe the technology is critical to the future of their businesses, and over 70 percent of them are investing in the booming sector.
Understanding the potential of AI, Saudi Arabia is heavily investing in the industry, as the Kingdom’s sovereign wealth fund announced in 2019 a $500 billion investment in AI and other emerging technologies over the next decade.
The Kingdom has also launched several initiatives, including the establishment of the Saudi Arabian Data and Artificial Intelligence Authority and the National Data Management Office, to accelerate the implementation of AI in the Kingdom’s various sectors.
The UAE is also boosting its involvement in the technology, and has launched the National Artificial Intelligence Strategy 2031, with its focus on attracting talent for jobs of the future, funding research and innovation hubs, and developing appropriate infrastructure and data ecosystems along with a balanced legislative environment.
As nations and companies across the world steadily embrace AI, a recent report from investment bank Goldman Sachs suggested it could take the place of 300 million full-time jobs around the world.
FASTFACT
Understanding the potential of AI, Saudi Arabia is heavily investing in the industry, as the Kingdom’s sovereign wealth fund announced in 2019 a $500 billion investment in AI and other emerging technologies over the next decade.
The report predicted that administrative and legal sectors will be at the highest risk, with 46 percent of administrative jobs and 44 percent of legal positions at risk of replacement by AI.
According to the report, physically intensive jobs are expected to face less risk, with construction facing a 6 percent threat, whereas maintenance is at 4 percent threat.
“The combination of significant labor cost savings, new job creation, and a productivity boost for non-displaced workers raises the possibility of a labor productivity boom like those that followed the emergence of earlier general-purpose technologies like the electric motor and personal computer,” stated the bank in a note titled The Potentially Large Effects of Artificial Intelligence on Economic Growth.
The Goldman Sachs report, however, added that technological advances which initially replace workers will create employment growth in the long term.
“Although the impact of AI on the labor market is likely to be significant, most jobs and industries are only partially exposed to automation and are thus more likely to be complemented rather than substituted by AI,” said the report.
Goldman Sachs further pointed out that the roll out of AI could boost labor productivity, and push global growth up by 7 percent year-on-year over a 10-year period.
Saudi Arabia’s palm.hr takes the first step in regional expansion
Company to have a fully established team in Egypt and UAE by three months
Updated 11 min 6 sec ago
Nour El-Shaeri
CAIRO: Saudi-based human resources and employee experience platform palm.hr is taking its first steps in regional expansion with one foot already in Egypt and the UAE.
Founded in 2019 by Richard Schrems, Christoph Czichna and Dragan Nikolic, the service provides businesses with a portal to streamline work experiences for all teams including operations such as onboarding, vacation tracking, payroll, and offboarding.
In an interview with Arab News, Schrems, who is also the CEO, said the company will have a fully established team in Egypt and the UAE in just three months.
“We are already serving our first customers in UAE and Egypt and things are in motion to have teams in both countries within the next three months. Additionally, we are looking to offer our services to companies based across all Gulf Cooperation Council countries by the end of the year,” Schrems said.
The company has positioned itself as a regional provider of HR technology services with a mission to transform the space and allow businesses to better manage their most important asset – human resources.
Schrems described palm.hr’s business strategy as comprising three main pillars. The first is the software’s high configurability and flexibility that makes it easier to apply it to different business structures.
The second is a HR Tech Stack that is scattered across many different tools and solutions.
“We therefore are working on building the most integrated HR software in the market to merge all that information to be the single source of truth of any company’s people data. We have successfully integrated with many Saudi Government Solutions such as GOSI, Mudad and Muqeem,” he added.
The third pillar pinpoints the overload of communication tools used by companies, such as WhatsApp, email, calls, Slack, or meetings. The company provides a centralized communication hub for the organization to stay on top of all tickets and tasks.
Richard Schrems, Christoph Czichna and Dragan Nikolic founded palm.hr. (Supplied)
“Simply put, we proudly serve small and medium, growing and innovative companies that want to be people-centric organizations. Our focus currently lies on serving Saudi-based small and medium enterprises, however, throughout the year we will be offering our services across the GCC and beyond,” Schrems added.
He stated that the firm’s human centric approach gives it a competitive edge in the market where palm.hr focuses on supporting HR managers and employees through its platform.
“Many solutions were created to digitize processes; ours, however, aims to create a seamless experience for not only HR managers but just as much for their employees. That is why we have focused on not only creating a great desktop experience but combined it with intuitive and powerful mobile apps,” Schrems said.
“Both as a software and as an organization we focus on solving all the problems related to HR and work — for every stakeholder of any organization across Saudi Arabia and beyond,” he added.
Schrems stated that the level of support received from the Saudi government has been “astounding,” adding: “Every single government organization we dealt with has welcomed and supported us with open arms, which has helped us become the thriving company we are today.”
Schrems explained that the HR space still holds huge opportunities as millions of organizations are set to ride the wave of digitalization in the next couple of years.
Besides regional expansion, the company has aggressive goals in terms of product development and hiring.
Our platform will soon leverage business data to highlight Saudization achievements whether it is organization-wide or for specific professions.
Richard Schrems, palm.hr founder and CEO
Schrems added that the company is hiring talent across all functions, with its team of 70 set to double in size in the next 12 months.
“We also believe that HR tech and fintech will diverge in the future, and we will be offering financial services through partners on our platform,” he stated.
“Besides this, we are also building a dynamic content library to support customers and employees with all the insights they need about the Kingdom’s labor laws, employment and career development. We believe this will help nurture and support local talent, while attracting the best international professionals to choose to live and work in Saudi Arabia,” he added.
The company is doubling down on its product development efforts to ensure the solution is a perfect fit for clients, which means increasing more strategic HR modules and integrating artificial intelligence.
palm.hr currently stands on solid ground after it raised $5 million in a pre-series A funding round co-led by Speedinvest and RAED Ventures with participation from Wamda Capital.
Schrems stated that the company will focus on growing its presence in Saudi Arabia, Egypt and the UAE, and will thrive to raise another funding round within 12 to 18 months.
“At palm.hr, we want to make sure companies have the tools they need to remain compliant with Saudi nationalization and labor laws. Our platform will soon leverage business data to highlight Saudization achievements whether it is organization-wide or for specific professions,” Schrems said.
Former US secretary of treasury calls for bipartisan legislation to ensure safety of depositors
During the event, Steven Mnuchin discussed responsibilities, solutions after Silicon Valley Bank collapse
Updated 01 April 2023
Arab News
MIAMI: Former US Secretary of Treasury Steven T. Mnuchin has called for greater clarity and bipartisan legislation after the collapse of the Silicon Valley Bank.
“We don’t know if there’s another bank failure whether the government will or won’t guarantee all the depositors,” Mnuchin said at the Future Investment Finance forum in Miami.
“You could be a well-run midsize or regional bank today and you’re at a complete disadvantage because people are moving money to the money center panic. So, I think we need bipartisan legislation.”
“We shouldn’t have unlimited insurance, but we now need clarity because it’s unfair,” he said.
Talking about the recent collapse of SVB and the shockwaves experienced throughout the banking industry, Mnuchin explained that compared to the 2008 financial crisis, which “was about credit, a much more complicated issue to work through,” this event was a result of many missteps that could have been avoided.
“This banking crisis is all about interest rate risk, and this is simple, basic risk management 101.”
During the panel, Mnuchin discussed several key points about recent events in the sector, including the potential risk of a financial crisis caused by the Fed’s interest rate hikes and how this would impact the economy.
“The problem is most of the people we have in the financial markets in the US have never seen, quote, high-interest rates,” he said.
“Most people have been used to interest rates, short-term interest rates between zero and 2 percent. So you know, 4 percent, 5 percent is high on a relative basis.
“The economy is going to adjust pretty significantly. But as I said earlier, this is risk management 101 that a lot of people just got used to having low-interest rates forever.”
The discussion also covered the relationship between the US and China, including the need for better communication and coexistence.
“China is the second largest economy in the world. We have a responsibility to figure out how we deal with China in a proactive way,” Mnuchin said.
He added that although there were “legitimate national security issues with China, there’s a whole bunch of things that we should be doing with China, and we need to figure out how to coexist in the proper way.”
Saudi Arabia, Miami share similarities in quality of life standards experts tell FII Priority
Kingdom made quality of life a priority in Saudi Vision 2030
Cities should invest in arts and culture, panelists say
Updated 31 March 2023
Arab News
MIAMI: Saudi Arabia and Miami have a lot in common when it comes to quality of life and business opportunities, experts said at the FII Priority conference in Miami on Thursday.
Both cities have, in the last few years, they said, promoted better living standards for their citizens through socio-economic policies.
“Miami had this incredibly welcoming spirit. It was set up for success from the top down,” said Jeff Zalaznick, restaurateur and managing partner of hospitality company Major Food Group. “I’ve really gotten to understand — with Vision 2030 and the things that they (Saudi Arabia) are looking for — that there are a lot of similarities between the quality of life and business (policies) in Miami and what’s happening in Saudi Arabia.”
The Kingdom made quality of life a priority in Saudi Vision 2030 and is one of the few countries in the world to have a minister dedicated to improving quality of life for its residents.
“Everything we do is based on quality of life. It is so important to the crown prince that he set up its own ministry,” said Jerry Inzerillo, group CEO of Diriyah Gate Development Authority, adding that “positivity and optimism” are the “fuel of that country.”
In the latest World Happiness Report, Saudi Arabia was ranked No. 2 in the Arab World, and 30th in the world.
Barry Sternlight, chairman and CEO of Starwood Capital Group, pointed out that cities that have not not invest in their citizens’ quality of life have seen their population decline.
“I think that quality of life is driving market share,” he said. “It’s driving the success of cities that are focused on improving the lives of their citizens.”
Sternlight observed that the parameters individuals use to determine quality of life are evolving and are no longer entirely centered on economic concerns.
“People are looking for meaning and purpose, and whether it’s sustainable development,” he said.
Sternlight added that people consider art and culture to be key aspects of quality of life in cities and emphasized that having museums, galleries, and artistic offerings as part of the fabric of a city is essential to its success.
The CEO of real estate development firm Daccra, Craig Robins, said that building an ecosystem around art and culture is crucial and should include supporting artists, small galleries, and other related businesses.
He cited Miami Design District as an example, and explained that since its launch in the early 2000s, the neighborhood has become a center of creativity and a thriving hub for culture and business — not only for Miami but the world.
“The goal was to create a sense of community that people would really love — something that was different, and something that could be a resource for all,” Robins said.
Saudi Arabia, UAE ‘play critical role in space exploration’
Investment firm boss Brian Hook tells forum that people and funding will drive growth
Panel discussion hears ‘third space revolution’ is inspiring younger generations
Updated 31 March 2023
Arab News
MIAMI: Saudi Arabia and the UAE are playing a “critical role” in the future of space exploration, the boss of a major investment firm has told a panel of industry experts in Miami.
Brian Hook, the vice-chairman of Cerberus, told the FII forum that countries like the Kingdom and the UAE had greatly accelerated a new space race. “By putting both their people and their funding behind (it), they brought into existence this sort of new space economy,” he said.
He and other panelists examined the potential for development and investment in the space industry, and spoke about the breakthroughs and dynamics that make it appealing to the general public, investors and enterprises.
Hook said that allowing the private sector into the market had gained fresh momentum, and the overall market value was expected to surpass $1 trillion in the coming years.
“Private equity and venture capital have been funding and enabling some of the most innovative companies for space exploration,” he said.
Helene Huby, CEO of The Exploration Company, which wants “affordable, sustainable and open” space exploration, said there had been a renaissance in the industry in the last few years.
“We are living in the third revolution. The first was the Apollo mission, which was about access. The second was the industrialization of space exploration with the International Space Station,” Ruby said.
“And what we see now is a revolution that is not about access, it’s not about costs and industrialization. It’s about staying in space.”
Speakers said that current enthusiasm around space exploration and increased investments would play a critical role in addressing some of the world’s most pressing challenges, including climate change, food shortages and droughts.
“One of the things that people don’t consider is the effect that human spaceflight has not only on the people that fly but also the people on the ground,” said Jane Pointer, founder of carbon-neutral spaceflight company Space Perspective.
“Space is a great contribution to humanity,” added Alan Pellegrini, CEO of Thales North America, a defense and aerospace company.
“I was young at the time but Neil Armstrong’s landing on the moon transformed my life and inspired me to a career in aerospace. And I think it is having the same effect on younger generations today.”
“Space has always been a place where you can collaborate regardless of which nation you belong to, and I really hope that that spirit continues,” he added.
