Saudi is currently on a path of rapid transformation: Austria’s former federal minister for digital and economic affairs

Special Saudi is currently on a path of rapid transformation: Austria’s former federal minister for digital and economic affairs
Margarete Schramboeck, board member of Aramco Digital. (AN)
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Updated 15 September 2023
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Saudi is currently on a path of rapid transformation: Austria’s former federal minister for digital and economic affairs

Saudi is currently on a path of rapid transformation: Austria’s former federal minister for digital and economic affairs

RIYADH: Saudi Arabia is currently on a path of rapid transformation with so many Saudi women engaging in various critical jobs. 

“What I saw in Saudi is this big transformation going on. And I’m highly impressed by so many Saudi women in different functions; in journalism, in tech functions. I heard that 58 percent of Saudi engineers are women. I was highly impressed because this is still an issue in Europe and you have more women in tech than we have,” according to Margarete Schramboeck, Austria’s former federal minister for digital and economic affairs and current board member of Aramco Digital. 

In an interview with Arab News, Schramboeck said Saudi Arabia has advanced in the digital infrastructure realm over the past few years with the rollout of 5G and the implementation of advanced technologies like Artificial Intelligence. 

Strengthening digital infrastructure is crucial to reduce poverty in all nooks of the world, especially in African countries. 

“Today, it is about digital infrastructure. This is the key factor for success for companies and countries. If we take a global approach to it, we can see that this is the basis for opening up new businesses, learning, and teaching. If you look at Africa, it means, for a family, they can earn a living. So, a digital infrastructure is a key factor of reducing poverty all around the world,” said Schramboeck. 

During the talk, Schramboeck noted that digital education is very much essential as Saudi Arabia leapfrogs in the technological sector. 

“A key factor is digital education. That is one of the key factors. And here, each investment is paying off 10 times, or 20 times. And here, what we all need is that we take our youth from consuming to creating. So, the digital world is not just for consuming news, but it is for being creative in this world. And if we manage this, then we are going to be even more successful,” added Schramboeck. 

It was in January 2023 that Saudi Arabian Oil Co. launched Aramco Digital to accelerate the company’s digital transformation journey. 

After the launch of the company, Saudi Aramco’s president and CEO Amin Nasser said that Aramco Digital is planning to invest $1.9 billion over the next three years, making it the biggest investment from the energy giant in digital to date. 

According to Schramboeck, further strengthening the digital infrastructure is required in Saudi Arabia as the Kingdom is currently on the path of economic diversification. 

She added: “The digital sector is key, and it is in each of the other sectors. So, it is not only a sector of itself, but it is enabling all the sectors, it is enabling energy with a smart grid, it is enabling education, it is enabling other sectors like automotive. A car today is a piece of software and a batter, and soon it is also going to be built in Saudi.” 




Margarete Schramboeck speaking to Arab News. (AN)

Schramboeck went on and said that technologies like AI and the Internet of Things will form the basis for our future, and the advancements of these technologies will have direct impacts in all other sectors. 

She added that bolstering the digital infrastructure will help Saudi Aramco help increase efficiency, along with reducing carbon dioxide emissions. 

“CO2 reduction is a key target and Aramco is doing here a lot. The company has done a lot of investment. It is working together with startups in the startup scenes to bring in new ideas,” said Schramboeck. 

She continued: “With the power of the company and the budget that has been allocated to Aramco Digital, we can help industries to transform. And in this way, we can reduce CO2 emissions, improve process, and develop jobs from blue-collar work to white-collar work.” 

FASTFACT

Career Highlights

1995: Head of new business sales Head of Technical and Service Departments,

Nokia 2002: CEO NextiraOne 2014: CEO,

Dimension Data Austria 2016: CEO,

A1 Telekom Austria AG DE. 2017: Federal Minister for Digital and Economic Afairs,

Austria Oct. 2019 – Jan 2020: Member of the National council,

Austria Jan 2020- May 2022: Federal minister for Digital and Economic Affairs,

Austria 2023: Board member of Aramco Digital, Saudi Arabia

Schramboeck added that the widespread embracement of digital technologies in the energy sector will help women enter the scene, as there is no need for hard physical training and instead, operations can be carried out from a remote-control center. 

“You can chat with your friends, and you can have a community. So, not sitting on the crane alone in the heat which is a classical blue-collar job, very tough and physical. It is transforming into a new type of job, which a lot of Saudis can do, women can do,” noted Schramboeck. 

She went on and said that public-private partnerships are crucial to elevating economic development and innovation. 

“This (public-private partnership) is key. During my time in Austria, we had created for platform for digital learning. It was a platform for both government and companies. And this, I can also see here under Vision 2030, it is a common target, and it is companies and public sector aligning,” noted Schramboeck. 

She concluded: “The role of public sector is always to be ahead a little bit, to be an innovator. And there is a great potential in this form of cooperation, which has been proven successfully in both in Saudi and in Europe.” 


KSA ministry acquires Kuwaiti Arabic dictionary

KSA ministry acquires Kuwaiti Arabic dictionary
Updated 29 September 2023
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KSA ministry acquires Kuwaiti Arabic dictionary

KSA ministry acquires Kuwaiti Arabic dictionary

RIYADH: Saudi Arabia’s Ministry of Culture has reached an agreement with Kuwait-based Sakhr Software Company to acquire the Sakhr Contemporary Arabic Lexicon (Al-Mu’jam Al-Mu’asir).

The agreement includes transfer of intellectual property rights related to the dictionary, which offers source identification, material selection, arrangement, interpretation, explanation, and user-friendly presentation.

Fahad Al-Sharekh, son of the founder of the Sakhr Software Company, told Arab News that the deal is the result of Saudi Arabia’s efforts to protect the Arabic language as part of Vision 2030. 

“We are very happy and excited,” he added. “We are honored that the King Salman Global Academy for Arabic Language has acquired the lexicon.”

Al-Sharekh said that the lexicon contains words spanning more than 100 years of cultural content, with entries from as far afield as Syria or Lebanon. 

“We input 100,000 words with new definitions,” he said.

Abdullah Al-Washmi, secretary-general of the King Salman Global Academy for Arabic Language, said the acquisition highlights the academy’s efforts to promote the Arabic language in contemporary applications.

He commended the efforts of Minister of Culture and Chairman of the Board of Trustees for KSAA, Prince Badr bin Abdullah bin Farhan, in elevating the cultural system through a range of channels and applications to serve both national and Arab cultures.

Al-Washmi said that this commitment reaffirms the Kingdom’s pioneering global role in this field.

Founder of Sakhr Software Company, Mohammed Al-Sharekh, said the acquisition will benefit Arabic language users and propel the language toward new horizons. 

The Sakhr Software Company is known for the creation of the world’s first “Arabized computer” created in collaboration with Japanese giants Hitachi and Yamaha. 

*With SPA


Global Markets – world stocks nudge up, bonds rally in bright end to grim quarter

Global Markets – world stocks nudge up, bonds rally in bright end to grim quarter
Updated 29 September 2023
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Global Markets – world stocks nudge up, bonds rally in bright end to grim quarter

Global Markets – world stocks nudge up, bonds rally in bright end to grim quarter

LONDON: World shares nudged higher on Friday, while better-than-expected euro zone inflation data boosted government bonds, with both asset classes still set for their worst quarter in a year in response to central banks’ pledge to keep interest rates high, according to Reuters.

MSCI’s broad index of global stocks gained 0.4 percent on Friday, while European and US government bonds rallied strongly to reflect markets resetting interest rate bets.

In a surprise bout of good news for hawkish central banks, data showed headline inflation in the euro area rose 4.3 percent in September year-on-year, below economists’ forecasts for a 4.5 percent rise and its lowest in two years.

The yield on Germany’s two-year bond, which tracks rate expectations and falls as the price of the debt rises, dropped 7 basis points to 3.23 percent.

Germany’s 10-year government bond yield fell 12 bps to 2.848 percent, with the euro area debt benchmark heading for its best trading day in more than a month.

And with strong sentiment flowing across the Atlantic, the yield on the 10-year US Treasury fell 6 bps to 4.6 percent.

That provided a bright end to a torrid quarter for government bonds. Germany’s 10-year yield has shot up 45 bps this quarter, reflecting the worst three-month sell-off since the third quarter of 2022.

The yield on the 10-year US Treasury is up 72 bps since July, also its worst quarterly performance since the same quarter last year.

The debt market relief came as some analysts argued bonds had become too beaten up in recent months.

The European Central Bank and the US Federal Reserve have signaled that the best investors could hope for, following their sharpest monetary tightening cycle in decades, was a long period of interest rates staying where they are.

“Yields are way too high and will move lower but we’re in that gap between now and when that happens,” said James Rossiter, head of global macro strategy at TD Securities in London.

Strategists at Barclays pointed out in a note to clients, however, that because stock valuations fall when the income yields on lower-risk bonds rise, “if the bond market were to turn more disorderly, equities are unlikely to be immune.”

Elsewhere in markets, Europe’s Stoxx 600 share index jumped 1 percent and Britain’s FTSE 100 rose 0.8 percent.

Futures contracts that track the performance of Wall Street’s S&P 500 share index indicated the blue-chip equity benchmark would open 0.5 percent higher later on.

In currencies, the euro added 0.5 percent against the dollar.

Sterling rose 0.4 percent after a revision of official data on Friday showed Britain’s economic performance since the start of the COVID-19 pandemic was stronger than previously thought.

Later on Friday, the latest release of the US personal consumption expenditures price index will provide a fuller picture of inflationary trends in the world’s largest economy.

Investors will also turn their attention to Washington, where the Democratic-led US Senate forged ahead on Thursday with a bipartisan stopgap funding bill aimed at averting a fourth partial government shutdown in a decade.

“People are getting used to partial shutdowns but if it is prolonged and the stakes are raised then the economic consequences start to mount,” said Nordea chief markets strategist Jan von Gerich, adding that the dollar could be hurt if no agreement is reached.

The dollar index eased 0.5 percent to 105.69 but hovered near 10-month highs of 106.84 touched earlier this week.

In Asia, the Japanese yen was at 149.08 per dollar, a slight respite from recent falls that have put markets on alert for potential currency intervention.

MSCI’s index of Asian stocks outside Japan rose 1.2 percent on Friday, with Chinese markets closed for a holiday.

Oil prices regained ground after a brief pause in a rally as traders weighed expectations of supply increases by Russia and Saudi Arabia versus forecasts of positive demand from China during its Golden Week holiday.

US crude rose 0.5 percent to $92.16 per barrel and Brent was at $95.75, up 0.4 percent on the day.
 


Saudi businesses expect low levels of security threats in 2024: report

Saudi businesses expect low levels of security threats in 2024: report
Updated 29 September 2023
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Saudi businesses expect low levels of security threats in 2024: report

Saudi businesses expect low levels of security threats in 2024: report

RIYADH: Driven by the increased use of advanced technologies, most large companies in Saudi Arabia expect low levels of security threats in 2024, a threat assessment investigation has revealed.  

According to the World Security Report released by London-based global security firm G4S, the Kingdom is consolidating its position as one of the best countries in the region to do business, thanks to its widespread adoption of advanced technology.  

“The government’s measures to stamp down on cybercrime, along with its substantial investments in advanced technologies and digital upskilling in the context of Saudi Vision 2030, make the country an attractive hub for businesses,” said Mahmoud Mudhaffar, managing director of G4S in Saudi Arabia,  in a statement.  

The study found that the Kingdom had the lowest intrusion and competitor sabotage rates at 11 percent and 13 percent, respectively.  

Last year, Saudi Arabia experienced lower levels of external threats related to vandalism, trespass and distributed denial of service attacks compared with the global average, the report added. 

A DDoS attack is a cybercrime that involves multiple machines working together to overwhelm a target with internet traffic. 

The report surveyed 1,775 chief security officers of large organizations across 30 countries, including 235 CSOs in the Middle East from the UAE, Saudi Arabia, Egypt and Jordan. 

The research revealed that companies in the Middle East faced the least security threats involving violent criminals at 19 percent.  

CSOs who participated in the survey opined that Saudi Arabia plans to increase its use of technologies like artificial intelligence, facial recognition and machine learning.  

“In particular, it appears to be embracing the use of AI. Saudi Arabia is the second highest country in the region behind Jordan to say it will adopt AI-powered surveillance and monitoring systems at 46 percent,” said G4S in the report.  

The Kingdom is also the second-highest country in the region to expect to use biometrics and facial recognition technology behind the UAE at 49 percent over the next five years.  

Similarly, at 44 percent, more companies in the Kingdom plan to use internet-connected technologies and connected devices compared to any other country in the region. 


Oil Updates – crude up $1 on tight US supply, China demand

Oil Updates – crude up $1 on tight US supply, China demand
Updated 29 September 2023
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Oil Updates – crude up $1 on tight US supply, China demand

Oil Updates – crude up $1 on tight US supply, China demand

LONDON: Oil prices rose on Friday and were headed for a gain of about 3 percent for the week, driven by tight US supply and expectations of strong fuel demand in China during the Golden Week holiday, according to Reuters.

US West Texas Intermediate crude was up $1.31, or 1.43 percent, to $93.02 per barrel at 3:08 p.m. Saudi time.

Front-month Brent November futures were up 88 cents, or 0.92 percent, at $96.26 per barrel ahead of the contract’s expiry later in the day. The more-liquid Brent December contract was up 97 cents, or 1.04 percent, at $94.07 per barrel.

A backdrop of tight supplies in the US provided further price support, with storage at Cushing, Oklahoma, the delivery point for crude futures, already at its lowest since July 2022.

“Any additional decline would threaten to bring them down to a critical level, which could make further withdrawals difficult,” said Commerzbank analyst Carsten Fritsch.

China’s fuel demand was set to firm as the week-long Golden Week holiday began on Friday.

“(An) increase in international travel during the Golden Week holiday is boosting Chinese oil demand,” ANZ analysts said in a client note.

Domestic travel is also expected to boost demand, with data from flight app Umetrip showing the average number of daily flights booked is a fifth higher than for Golden Week in 2019, before COVID.

Meanwhile, inflation in the euro zone fell to a two-year low of 4.3 percent in September, the latest Eurostat flash reading showed, suggesting the European Central Bank’s policy of steady interest rate hikes was taking effect.

Russia is considering introducing fuel export quotas if the current export ban is not effective in bringing down domestic prices.

Russian gasoline and diesel exchange prices on the St. Petersburg International Mercantile Exchange fell slightly on Friday.

Brent is forecast to average $89.85 a barrel in the fourth quarter, and $86.45 in 2024, according to a survey of 42 economists compiled by Reuters on Friday.


‘Place the burden’ on wealthy segments of society, IMF tells Pakistan

‘Place the burden’ on wealthy segments of society, IMF tells Pakistan
Updated 29 September 2023
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‘Place the burden’ on wealthy segments of society, IMF tells Pakistan

‘Place the burden’ on wealthy segments of society, IMF tells Pakistan
  • Pakistan and IMF struck $3 billion bailout deal earlier this year
  • Reforms linked to bailout have already fueled annual inflation

KARACHI: Pakistan needs to “place the burden” on wealthy segments of society and ensure that the rich pay taxes and the poor are protected, an IMF spokeswoman said in a press briefing on Thursday.

The International Monetary Fund and Pakistan struck a staff-level agreement for the provision on $3 billion in bailout funds under a stand-by arrangement (SBA) earlier this year, giving the South Asian economy a much-awaited respite as it teetered on the brink of default.

Reforms linked to the bailout, including an easing of import restrictions and a demand that subsidies be removed, have already fueled annual inflation, which rose to a record 38.0 percent in May. Interest rates have also risen, and the rupee hit all-time lows. Last month the currency fell 6.2 percent though it has sharply recovered in September amid a crackdown on illegal foreign exchange trade in grey and black markets by security agencies.

The August data from Pakistan’s statistics bureau showed a slight easing from July’s 28.3 percent inflation rate, but food inflation remained elevated at 38.5 percent.

“Place the burden on the wealthy segments of society. It’s important … that the rich pay their taxes, tax to GDP ratio in Pakistan is very, very low and that the poor are protected in society. The poor and the vulnerable members of society are protected,” IMF spokeswoman Julie Kozack told reporters in Washington, when asked about IMF reforms linked to the bailout.

She said the objectives of the program were to “provide a policy anchor” to Pakistan to address domestic and external imbalances and a framework for financial support from other donors, multilateral and bilateral partners, including fresh financing and rollovers of debt coming due.

“Policy efforts center on the implementation of the fiscal year 2024 budget, appropriate monetary policy aimed at bringing inflation down, and continued reforms to improve the viability of the energy sector,” Kozack said.

“All of these reforms are ultimately aimed at paving the way for higher, more inclusive and more resilient growth. To support social development and climate resilience, the program envisages plans to strengthen public financial management, tax administration efforts, and to better prioritize public investment. And all of this is being done with support from partners including not only the IMF but also the World Bank and the Asian Development Bank.”