Saudi Arabia’s POS transactions surge 20%, driven by telecoms growth

Saudi Arabia’s POS transactions surge 20%, driven by telecoms growth
The telecoms industry posting the highest sectoral increase in the final week of August. Shutterstock
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Updated 05 September 2024
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Saudi Arabia’s POS transactions surge 20%, driven by telecoms growth

Saudi Arabia’s POS transactions surge 20%, driven by telecoms growth

RIYADH: Saudi Arabia’s point-of-sale transactions registered a weekly increase of 20.4 percent between Aug. 25 and 31, with the telecommunication sector leading the growth.

The Saudi Central Bank, also known as SAMA, recorded SR14 billion ($3.7 billion) in transactions over the seven-day period, with the telecoms industry posting the highest sectoral increase at 42 percent to reach SR131.9 million.

The figures revealed the education sector saw the only decline, dropping 38.6 percent to SR516.2 million. This was the second decrease in a row for the sphere after surging for four straight weeks, coinciding with the start of the academic year on Aug. 18.

Spending on food and beverages recorded the second largest surge, with a 40.8 percent positive change, reaching SR2.16 billion. 

Expenditure in clothing and footwear came in third place, recording a 31 percent increase reaching SR785 million during this period.

Restaurants and cafes accounted for the second-largest POS transaction value, with SR1.96 billion. Miscellaneous goods and services followed at SR1.58 billion.

Spending in the leading three categories accounted for 40.62 percent or SR5.7 billion of the week’s total value.

At 6.1 percent, the smallest increase occurred in hotel spending, boosting total payments to SR238.3 million. Expenditures on construction and building materials came second, surging 9 percent to SR343.5 million. In the third place, spending on recreation and culture increased by 13.7 percent to SR334.2 million.

Geographically, Riyadh dominated POS transactions, representing 34 percent of the total, with expenses in the capital reaching SR4.77 billion — a 14.3 percent increase from the previous week. 

Jeddah followed with a 13.6 percent surge to SR1.92 billion, accounting for 13.6 percent of the total, and Dammam came in third at SR691 million, up 17.1 percent.

Hail experienced the most significant rise in spending, increasing 37.9 percent to SR231.8 million. Tabouk and Buraidah also witnessed upticks, with expenditure surging 37.3 percent and 22.9 percent to SR294.1 million and SR335.5 million, respectively.

In terms of the number of transactions, Hail recorded the highest increase at 24.9 percent, reaching 4,055, followed by Tabouk with a 21.4 percent increase, achieving 4,986 transactions.


Oil Updates – prices little changed as Middle East conflict, ample supply outlook weigh

Oil Updates – prices little changed as Middle East conflict, ample supply outlook weigh
Updated 04 October 2024
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Oil Updates – prices little changed as Middle East conflict, ample supply outlook weigh

Oil Updates – prices little changed as Middle East conflict, ample supply outlook weigh

SINGAPORE: Oil prices were little changed on Friday, but remained on track for strong weekly gains, as investors weighed the prospect of a wider Middle East conflict disrupting crude flows against an amply supplied global market.

Brent crude futures ticked down 8 cents, or 0.1 percent, to $77.54 a barrel as of 7:15 a.m. Saudi time. US West Texas Intermediate crude futures were down 6 cents, or 0.08 percent, to $73.65 a barrel.
Both benchmarks were headed for weekly gains of about 8 percent.

Bearish bets on oil have found some room to unwind this week amid mounting concerns over potential supply disruptions in the Middle East, along with optimism that China’s recent economic stimulus efforts may offer some uplift in demand, said IG market strategist Yeap Jun Rong.

“The question now is whether there will be an actual disruption in crude supplies, and that should keep prices in a waiting game over the weekend,” Yeap added.

The US is discussing whether it would support Israeli strikes on Iran’s oil facilities as retaliation for Tehran’s missile attack on Israel, President Joe Biden said on Thursday, while Israel’s military hit Beirut with new airstrikes in its battle against Lebanese armed group Hezbollah.

Biden’s comments contributed to a 5 percent rally in oil prices on Thursday, as Israel weighs its options after its arch-foe Iran launched its largest-ever assault on Tuesday.

“Supply risks are back in focus as tension in the Middle East rises, but we expect the impact to be limited,” ANZ analysts said in a note.

While the region accounts for more than a third of the world’s oil supply, a direct attack on Iran’s oil facilities seems the least likely response among Israel’s options, the analysts said.

“Such a move would upset its international partners while a disruption to Iran’s oil revenue would likely leave it with little to lose, potentially provoking a more ferocious response.”

Concerns over oil supply that drove up prices earlier in the week have also been tempered by OPEC’s spare production capacity and the fact that global crude supplies have yet to be disrupted by the Middle East unrest.

Libya’s eastern-based government and Tripoli-based National Oil Corp. announced on Thursday the reopening of all oilfields and export terminals after a dispute over leadership of the central bank was resolved, ending a crisis that had heavily reduced oil production.

Iran and Libya are both members of OPEC. Iran, which is operating under US sanctions, produced about 4 million barrels per day of fuel in 2023, while Libya produced about 1.3 million bpd last year, according to data from the US Energy Information Administration.


How AI is transforming the banking industry and leading the fight against fraud

How AI is transforming the banking industry and leading the fight against fraud
Updated 03 October 2024
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How AI is transforming the banking industry and leading the fight against fraud

How AI is transforming the banking industry and leading the fight against fraud
  • Banks in Saudi Arabia and the UAE are adopting AI-driven programs to help improve accuracy, efficiency, and security
  • AI is already facilitating faster decision-making and personalized services, boosting customer satisfaction and driving innovation

RIYADH: Artificial intelligence is transforming the banking industry by creating seamless customer experiences, automatically detecting fraudulent activity, and completing time-consuming tasks normally performed by humans.

According to a report published this year by McKinsey, generative AI could add between $200 billion and $340 billion a year in value across the global banking sector, largely through increased productivity.

Earlier this year, Riyad Bank announced the launch of its new “Center of Intelligence,” which will introduce AI technologies and services to the Saudi banking sector.

Using machine learning and modeling, the center will offer a cutting-edge environment for AI-driven research, innovation and analysis. It will also use machine-learning techniques and solutions to improve the efficiency and effectiveness of the bank’s investments and operations.

Mazen Pharaon, chief digital officer at Riyad Bank, called AI “a strategic asset and game changer” for the industry.

“It’s also instrumental in helping us offer exceptional financial services to our customers and financial performance to our shareholders,” he told Arab News.

AI offers significant advantages over traditional, human-led methods, including enhanced efficiency, accuracy and scalability, Pharaon said.

“It enables us to process large volumes of data rapidly, delivering insights that would be challenging to obtain through conventional techniques.

“AI also facilitates accelerated decision-making and personalized services, boosting customer satisfaction and driving innovation.

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“Additionally, AI helps us identify new business opportunities, reducing costs and improving risk management by identifying potential issues before they escalate.”

Money management has not been entirely handed over to the machines, however. AI-driven automated decisions at Riyad Bank are complemented by human oversight to guarantee accountability and ethical compliance.

“While AI excels at processing vast amounts of data and identifying patterns at scale, our experts are involved in reviewing and validating key decisions and their expected impact,” Pharaon said.

“This hybrid approach allows us to leverage AI’s power while preserving the essential human supervision and oversight in banking.”

Riyad Bank’s long-term vision is to extend AI across all business areas.

“Our aspiration at Riyad is to embed the use of AI, data science and advanced analytics in the bank’s DNA and overall processes,” Pharaon said.

Mashreq Bank, a privately owned bank based in the UAE, also uses AI-backed digital solutions, which analyze customer data to provide personalized financial recommendations and insights across various platforms.

Fernando Morillo, the group head of retail banking at Mashreq, believes AI will be integral to the future of banking services.

“We utilize AI in various ways to enhance customer experience and streamline operations,” Morillo told Arab News.

DID YOU KNOW?

• AI could add up to $340 billion annually to the global banking sector through increased productivity.

• Riyad Bank’s ‘Center of Intelligence’ will introduce AI technologies to enhance research, investments and operational efficiency.

•AI-backed digital solutions at Mashreq Bank improve customer experience, offer personalized financial advice and detect fraudulent activity.

“We have launched a chatbot in the UAE, which is also being rolled out to other markets. This AI-powered chatbot can understand customer intent, translate it into actions, and provide 24/7 support.

“Our AI-backed chatbot has the ability to handle more than 80 different scenarios, anticipating customer needs and proactively offering solutions.”

Because data protection is a growing concern for every business, Mashreq offers advanced encryption techniques to ensure secure data-sharing protocols, and conducts regular security audits to safeguard customers’ information.

“Additionally, we implement rigorous testing and validation of our algorithms to ensure they meet ethical standards and regulatory requirements.”

Mashreq Bank uses AI-backed digital solutions. (Supplied)

Morillo said the ability of machine-learning models to continuously adapt to recognize new fraud tactics significantly reduces the risk of fraudulent activities and enhances overall security for customers.

“AI algorithms help us in analyzing vast amounts of data in real-time to identify patterns and anomalies that may indicate fraudulent activity,” he said. “This allows us to detect suspicious transactions, prevent fraudulent account openings, and reduce false positives.”

But Morillo does not believe that AI will replace humans entirely. Indeed, employees will still be needed to review AI activities and make adjustments as needed.

“While AI can provide insights, recommendations, and even decisions, ultimately humans supervise these systems to ensure decisions are fair, accurate, and compliant,” he said.

“This oversight is essential for maintaining accountability and addressing any ethical concerns that may arise.”

 


ACWA Power joins COP29 as energy and water partner

ACWA Power joins COP29 as energy and water partner
Updated 03 October 2024
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ACWA Power joins COP29 as energy and water partner

ACWA Power joins COP29 as energy and water partner

RIYADH: ACWA Power, a developer, investor, and operator of power generation and desalinated water plants, joined COP29 as an energy and water partner, highlighting the company’s commitment to sustainable practices in the renewable energy landscape.
Along with ACWA Power’s role as a partner at the summit in Azerbaijan, the company will participate in the event’s Green Zone as an innovative leader in the energy sector.
The zone will host a variety of global businesses presenting climate-friendly solutions, serving as a dedicated space for private sectors.
The objective for ACWA Power at the global conference is utilizing the opportunity to create a platform for collaborations with other global industries, potential partners, and climate advocates, thereby fostering progress in the energy transition initiatives.
As the largest private water desalination provider in the world, ACWA Power is at the head of green hydrogen development. It also plays a critical role in the global energy transition.
“We believe that tackling this global challenge demands a paradigm shift in how we provide water and energy to our world. We must act fast to continue the transition away from fossil fuels, while providing reliable, competitive and sustainable supplies,” said Marco Arcelli, CEO of ACWA Power.
“It is with this focus that we deliver solutions that contribute to Net Zero goals and long-term climate ambitions, in a just and inclusive manner. Celebrating COP29 in Azerbaijan is of particular significance.”

He concluded: “Today, the country has the potential to turn into a bridge between Central Asia and Europe for new green sources of power and green molecules, technologies where ACWA Power has reached the most competitive costs and highest reliability in the world.”
ACWA Power, established in 2004, expanded its operations to various countries in the region including in Africa, Central Asia, and Southeast Asia. The Saudi company aligns its strategies with the UN climate change objectives.

Partners at COP 29 will have opportunities to participate in global climate policies, showcase sustainability efforts, and support climate action in their key business areas.


Global cybersecurity workforce faces 2.8m shortfall, says BCG official

Global cybersecurity workforce faces 2.8m shortfall, says BCG official
Updated 04 October 2024
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Global cybersecurity workforce faces 2.8m shortfall, says BCG official

Global cybersecurity workforce faces 2.8m shortfall, says BCG official

RIYADH: The global cybersecurity workforce is grappling with a substantial shortfall, with an estimated 2.8 million professionals required to meet demand, according to Shoaib Yousuf, managing director of the Boston Consulting Group.

In an interview with Arab News during the Global Cybersecurity Forum in Riyadh, Yousuf stated that the current workforce stands at 7.1 million.

Yousuf delved into the reasons behind this gap, pinpointing a fundamental deficiency in “skilled” workers.

He emphasized: “This gives us a clear direction that a lot of work needs to be done to take the young cybersecurity professionals or young graduates and train them and provide them the right set of skills, training, certifications, mentorship, and internship to convert them and provide the career opportunities for them.”

During the forum, BCG, in collaboration with the Global Cybersecurity Forum, released the 2024 Global Cybersecurity Workforce Report, which paints a troubling picture of the industry. The report indicates that only 72 percent of digital defense roles are filled, leaving organizations increasingly vulnerable to rising threats.

To tackle these workforce challenges, Yousuf stressed the need for a comprehensive approach. “Building a sustainable cybersecurity talent pipeline requires a multi-faceted strategy,” he said. He advocated for an integrated system that includes awareness campaigns, educational programs, and initiatives that lay a strong foundation for those interested in cybersecurity careers.

A robust talent pipeline is essential, Yousuf noted, to create awareness, improve educational frameworks, and adequately prepare young professionals for success in the field. He mentioned that establishing strong strategies to attract students to cybersecurity, along with the private sector’s appealing mentorship and internship opportunities, could significantly enhance the workforce’s quality.

“One of the challenges we found is that everyone wants a skilled workforce. Everyone wants somebody with five to eight years of experience,” Yousuf pointed out, highlighting the gap faced by newcomers entering the cybersecurity arena.

He elaborated, “The third step is the career advancement and retention of the professionals. How we can do that is by providing a thriving career. Making sure we invest in the upskilling, we invest in the right set of cybersecurity certifications, and also look into the diversification. Today, we found that women participation in cybersecurity is 24 percent, whereas the average in ICT (information and communications technology) is 36 percent.”

Yousuf also noted a high demand for specific skill sets, stating, “Based on a survey, we identified that there are four skills that are highly in demand. One of them is definitely the cybersecurity leaders. There is a strong shortage of that. Cloud security, as you can see, there is a strong push for many organizations to shift to the cloud. Cloud security is one of the roles which was highlighted as one of the critical shortages.”

Additionally, he mentioned the growing need for security architects and experts in emerging technologies, particularly those specializing in artificial intelligence.

He emphasized the urgency of addressing cybersecurity threats, labeling it as one of the most significant global risks, second only to climate change. “Cybersecurity is one of the top risks, and multiple reports have highlighted that cybersecurity is a second top threat and risk after climate change,” Yousuf asserted.

Yousuf underscored that cybersecurity has remained “on the top agenda for many nations, for many decision-makers, many CXOs,” and has become a central topic of discussion at the board level, necessitating improvements in defenses.

Despite considerable investments in cybersecurity, he remarked, “We have always been catching up.” Yousuf highlighted the financial implications of cybercrime, noting that the cost of such offenses exceeded $2 trillion last year and is projected to surpass $6 trillion in the next five years. “If you look at the impact of cybercrime, it is moving so fast. But when you look at the cybersecurity investment, it’s not keeping up at the right pace,” he explained.

He reiterated the importance of creating a level playing field, suggesting that “AI provides a fantastic opportunity to understand the threat landscape better, and we can play a much better role, to be a little bit more proactive.”

Yousuf also pointed out that cybersecurity is a top priority for Gulf Cooperation Council countries, which have made significant advancements in recent years. “One of the things which we have observed is that cybersecurity is the top priority for the GCC countries, and over the last five to eight years, we have seen a leapfrog effort, not only incremental effort, leapfrog efforts,” he stated.

He highlighted Saudi Arabia’s swift progress, noting its rise from a ranking in the late 40s on the ITU Global Cybersecurity Index in 2019 to the second position within three years.

Yousuf concluded by stressing that GCC nations recognize the importance of fostering a secure cyberspace to build trust, particularly as digital adoption is pivotal to their economic growth. He underscored that investing in digital infrastructure and robust cybersecurity is critical to supporting their ongoing digital transformation efforts.


New Child Protection in Cyberspace Index aims to improve online safety for kids

New Child Protection in Cyberspace Index aims to improve online safety for kids
Updated 04 October 2024
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New Child Protection in Cyberspace Index aims to improve online safety for kids

New Child Protection in Cyberspace Index aims to improve online safety for kids

RIYADH: The launch of the Child Protection in Cyberspace Index at the Global Cybersecurity Forum signifies a historic advancement in safeguarding children online, according to an international think tank.  

Yuhyun Park, founder and CEO of the DQ Institute, highlighted that the CPC Index reflects tangible change following last week’s UN General Assembly agreement on a global digital compact, which included child protection in cyberspace as a central focus.  

“The CPC Index is the first concrete action since that agreement, and what we are seeing is a very high level of commitment to move forward,” she told Arab News during an interview on the sidelines of the forum in Riyadh. 

The index, developed in collaboration with key partners including the International Telecommunication Union, UNICEF, and WeProtect and the GCF institute offers a comprehensive framework for understanding child safety online at the national level.  

It builds on the DQ Institute’s seven years of research into child online safety but expands to include the roles of parents, schools, technology companies, and governments.  

“The beauty of the CPC Index is that it looks at the entire ecosystem surrounding children online, from families and schools to ICT companies and government regulations,” Park said, adding that this 360-degree approach provides countries with valuable insights into how they can best utilize their resources to improve child safety online. 

The CEO emphasized that the initiative is not just driven by one organization or nation but is the result of global collaboration across public and private sectors.  

The index aggregates standards and measures from around the world, helping nations track their progress in reducing cyber risks for children. “We are connecting the dots globally, so nations can see how they can move from today’s reality to a safer digital future,” she said. 

Park highlighted that over 70 percent of children globally have experienced at least one cyber risk, according to the latest Child Online Safety Index from the DQ Institute. With the rise of artificial intelligence, or AI, this number could shift dramatically as new risks emerge.  

“AI is going to change the landscape of online risks for children, and we expect new forms of dangers to become normalized, like AI-generated deepfakes and increased exposure to fake news,” the executive said.  

She warned that while AI can be used to mitigate some risks, it also has the potential to exacerbate existing challenges at an exponential rate. “We are entering a phase where bad actors have access to even better tools, and the dynamic could change quickly.” 

In this context, the CPC Index serves as a critical tool for countries to understand their vulnerabilities and implement necessary measures to protect children from these evolving threats. “The goal is to reduce that 70 percent number to zero,” Park said, underscoring the urgency of global cooperation in tackling these risks. 

Park praised Saudi Arabia’s leadership in advancing child protection in cyberspace, describing the Kingdom’s efforts as “remarkable” and fast-moving. “Saudi Arabia has shown a humongous advancement since 2020 in digital citizenship, digital well-being, and child online safety,” she said, crediting the Kingdom’s leadership under Crown Prince Mohammed bin Salman and Vision 2030.  

The Kingdom’s proactive stance on child protection is paving the way for other nations, Park observed, as it moves quickly from dialogue to action. 

One of the Saudi Arabia’s achievements is the development of national frameworks for child online safety, including plans to integrate digital citizenship education into the national curriculum.  

“If digital citizenship is implemented from primary school, it will be a tipping point for ensuring long-term online safety for children,” Park said. She encouraged the Ministry of Education to make digital literacy a core part of early childhood education, noting that such measures could set a global standard. 

Park also called for greater involvement from the private sector in ensuring a safer digital environment for children. “Private sector companies that have created the digital environment need to take leadership on this topic,” she said, adding that Saudi Arabia is well-positioned to drive collaboration between public and private sectors at both national and global levels. 

She also stressed that big tech companies like Google, Meta, Amazon, TikTok, and Snapchat must work together to create consistent measures and reporting systems to track and reduce cyber risks for children.  

“This isn’t about competition — it’s about collaboration,” she said, urging tech companies to partner with the CPC initiative to ensure transparency and accountability in online safety. 

The CPC Index and the broader child protection initiative, she concluded, represent a critical step in ensuring that children are protected in an increasingly AI-powered world. “This is why the CPC commitment is historically important — we need to act together to put the right boundaries around children in the digital space,” she said. 

As Saudi Arabia and the global community work together on this initiative, the CPC Index will provide valuable data and insights to help nations create safer digital environments for children, according to the executive.  

“The pact for the future is a starting point, but real change happens with implementation, and that’s where the CPC Index will make a difference,” Park said.