AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit
With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time. (ANJ)
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Updated 12 September 2024
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AI could out-think humans in 10 years, expert tells Riyadh summit

AI could out-think humans in 10 years, expert tells Riyadh summit

RIYADH: Artificial intelligence experts have delivered their visions for the future of the technology at the 3rd Global AI Summit in Riyadh.

With AI already evolving at breakneck speed, one expert said that humans could take a back seat to the technology in just 10 years’ time.

Simon Turner, a partner at Sofinnova Digital Medicine, said: “In 10 years, I think we will have something that looks like what we’re talking about in terms of artificial general intelligence.

“So, I think we will have models that are more sophisticated, more intelligent than humans on basically any topic. I think that will be a very powerful and good thing, and I don’t think that it will be dangerous.”

Turner’s hope is that AI will be able create models that automate menial business tasks, freeing up employees’ time and producing value.

However, Dr. Richard Benjamins, the co-CEO of RISE.ai, said that artificial general intelligence may not be the key to the technology’s evolution.

“In 10 years, I believe that we will not have artificial general intelligence, so not general intelligence, but we will have much better problem solving,” he said.

“So, it’s not about emotions, about fear or power or what the AI wants or its intentions; it’s about solving hard problems, which we will use for business, and I think mostly in the context of the co-pilot concept. So, humans in the driving seat.”

But the danger, Benjamins added, is that human brain power may deteriorate as AI takes on all the hard work. Who remembers phone numbers anymore, he asked, when your mobile phone takes care of all the memory.

“I predict one of the jobs in the future will be to run a fitness center for your brain, because we don’t have to think anymore, we don’t have to be creative anymore,” Turner said.

“It’s all done by AI. So, I think that’s one of the risks that we hardly are seeing yet. In the future, we need to go to the gym to stay mentally healthy.”

But there is an upside to the evolution of AI, Turner added.

“In research, I think we’ll be making incredible groundbreaking biological discoveries. We’ll probably start getting towards the foundation of biology, understanding how we work, why we are the way we are, why we get diseases, how we potentially prevent them.

“When you go and see your GP, suddenly if some anomaly pops up, they’ll know what to do with you in a much more streamlined fashion.”

• The article originally appeared on Arab News Japan


Foreign investments surge in Saudi stocks, reaching $1.02bn in September

Foreign investments surge in Saudi stocks, reaching $1.02bn in September
Updated 09 October 2024
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Foreign investments surge in Saudi stocks, reaching $1.02bn in September

Foreign investments surge in Saudi stocks, reaching $1.02bn in September

RIYADH: Foreign investors made net purchases of approximately SR3.84 billion ($1.02 billion) in stocks on the Saudi Exchange in September, marking a 947 percent increase year on year, according to official data.

The latest monthly report from Tadawul revealed that net foreign purchases in September 2023 amounted to SR366 million.

Attracting foreign investment is a key objective under Vision 2030, as Saudi Arabia seeks to position itself as a global business hub. A recent report from Statista highlighted the growth of the Saudi market, noting that the Kingdom’s stock exchange, with a market capitalization of $2.93 trillion, ranks as the third largest in the Europe, Middle East, and Africa region.

According to Tadawul, net foreign purchases for the first nine months of this year totaled SR16.4 billion, reflecting a 36 percent increase from the previous year. Qualified foreign investors led these international purchases, contributing SR3.78 billion in September, while foreign residents added SR76.62 million to their holdings.

The total value of foreign ownership in Saudi stocks reached SR414.9 billion in September, a year-on-year increase of 13.39 percent. In comparison, Saudi individuals held stocks valued at SR946.32 billion in the main market, up 18.71 percent from the same period last year. Institutional investors reported stock holdings of SR8.66 trillion by the end of September, representing a 15.01 percent decline year on year.

Gulf Cooperation Council investors owned stocks worth SR77.72 billion in the Kingdom’s main market by the end of September, marking a 36.85 percent increase compared to the previous year.

Parallel market insights

The report also highlighted that foreign ownership in Saudi Arabia’s parallel market, Nomu, reached SR914.07 million by the end of September, up 67.54 percent year on year. In this market, both individual and institutional Saudi investors held stocks valued at SR54.33 billion in September, reflecting a 16.73 percent rise from the previous year. Stocks held by GCC investors in the parallel market surged by 26.85 percent year on year, totaling SR247.44 million by the end of September.


Global sukuk hit $900bn outstanding by Q3: Fitch Ratings

Global sukuk hit $900bn outstanding by Q3: Fitch Ratings
Updated 31 min 6 sec ago
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Global sukuk hit $900bn outstanding by Q3: Fitch Ratings

Global sukuk hit $900bn outstanding by Q3: Fitch Ratings
  • US Federal Reserve’s recent decision to lower rates to 5% in September is expected to lead to further declines
  • Debt capital market in the GCC is about $1 trillion outstanding, with sukuk accounting for 37%

RIYADH: Global sukuk outstanding reached $900 billion by the third quarter of the year, marking an 8.5 percent year-on-year increase, driven by improved financing conditions after the US Fed rate cut, according to Fitch Ratings. 

The US Federal Reserve’s recent decision to lower rates to 5 percent in September is expected to lead to further declines, with Fitch projecting rates of 4.5 percent and 3.5 percent by the end of 2024 and 2025, respectively. This environment is anticipated to stimulate sukuk issuances in the near term. 

The analysis said that several factors, including the refinancing of upcoming maturities and the funding and diversification goals of Islamic countries, will drive the growth of sukuk issuances in the fourth quarter of this year and into 2025. 

Sukuk, which is also called an Islamic bond, is a Shariah-compliant debt product, through which investors gain partial ownership of an issuer’s assets until maturity. 

The analysis from Fitch follows Saudi energy giant Aramco’s recent completion of a $3 billion international sukuk issuance, with demand exceeding expectations and reaching six times oversubscription. 

“We are seeing a build-up of sukuk pipeline partially supported by the recent Fed cut. However, downside risks include shariah-related complexities, rising geopolitical risks, and oil volatilities that could affect market growth,” said Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings. 

He added: “In general, sukuk market credit conditions are sound, with 81.5 percent of Fitch-rated sukuk being investment-grade, 95 percent of sukuk issuers on Stable Outlooks, and no defaults.” 

In the Gulf Cooperation Council region, the debt capital market is about $1 trillion outstanding, with sukuk accounting for 37 percent. 

According to the analysis, international demand for emerging market US dollar debt issuance is likely to rise, with sukuk comprising more than 10 percent. 

The report also said that the sukuk market has become more diverse following the inaugural sukuk issuance by Ireland-based AerCap Holdings and Kuwait’s first sustainable sukuk from Warba Bank. 

In August, another report released by Fitch Ratings said that the UK is a Western hub for Islamic finance, with the London Stock Exchange being the third-largest listing venue for US dollar sukuk globally. 

According to that report, the LSE currently holds a 35 percent global share of US dollar sukuk, valued at around $80 billion outstanding at the end of the first half of this year. 


Egypt annual inflation rate slows to 26%

Egypt annual inflation rate slows to 26%
Updated 33 min 51 sec ago
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Egypt annual inflation rate slows to 26%

Egypt annual inflation rate slows to 26%
  • Egypt’s general consumer price index reached 236.5 points
  • Some areas saw a decline, with hotel service prices falling by 0.1%

RIYADH: Energy price rises led Egypt’s September inflation rate to reach 26 percent, although it is a significant reduction from the 40.3 percent recorded in the same month of 2023. 

According to the nation’s Central Agency for Public Mobilization and Statistics, Egypt’s general consumer price index reached 236.5 points, a 2.3 percent increase from August. 

Electricity, gas, and other fuels saw a substantial increase of 14.9 percent, adding further pressure on household expenses. 

Other contributors to the inflationary pressure included a 0.7 percent rise in cereals and bread and similar surges in meat and poultry. 

The prices of fish and seafood increased by 1.7 percent, while dairy products, cheese, and eggs saw a 2.8 percent rise. 

The vegetable category recorded a significant jump of 12.4 percent, and the cost of fruits rose by 1.7 percent. 

Sugar and sugary foods edged up by 0.2 percent, and coffee, tea, and cocoa prices grew 0.9 percent. 

Other categories also saw increases, including fabrics, up 1.1 percent, ready-made garments by 0.8 percent, and footwear by 0.3 percent. 

The prices for actual housing rent increased by 0.9 percent, while furniture and furnishings rose by 0.8 percent. 

Home maintenance goods and services grew by 1.4 percent, and household appliances by 1.5 percent. 

Medical products and equipment registered a 3 percent increase, while hospital services rose 1.3 percent. 

Transportation costs, including private carrier expenses, increased by 1 percent, with vehicle purchases up by 2.3 percent. 

Despite these rises, some areas saw a decline, with hotel service prices falling by 0.1 percent. 

However, this decrease was not enough to counterbalance the broader upward trend in other sectors. 

Egypt has tightened its monetary policy as part of an $8 billion financial support package from the International Monetary Fund signed in March. 

The program requires the country to implement various economic adjustments, including raising domestic prices and allowing the currency to depreciate. 

In line with these measures, the Central Bank of Egypt raised interest rates by 600 basis points on March 6, bringing total rate hikes for 2024 to 800 basis points. 

To address a budget deficit that reached 505 billion Egyptian pounds ($10.27 billion) in a 3.016 trillion pound budget for the fiscal year ending June 30, the government also increased the prices of certain subsidized goods. 

On June 1, the price of subsidized bread was increased by 300 percent, while on July 25, fuel prices rose by up to 15 percent.

The country’s food subsidy spending grew to 133 billion Egyptian pounds in the 2023/24 financial year, reflecting a 10 percent increase compared to the previous year. 


Saudi POS transactions surge 2.6% to $3.6bn, driven by education sector growth

Saudi POS transactions surge 2.6% to $3.6bn, driven by education sector growth
Updated 09 October 2024
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Saudi POS transactions surge 2.6% to $3.6bn, driven by education sector growth

Saudi POS transactions surge 2.6% to $3.6bn, driven by education sector growth
  • Telecommunication spending rose 17.4% to SR136.5 million
  • Expenditure on furniture saw the largest decline, dropping 11.7% to SR349.3 million

RIYADH: Saudi Arabia’s point-of-sale transactions climbed 2.6 percent to SR13.7 billion ($3.6 billion) in the week ending Oct. 5, driven by a sharp increase in spending within the education sector, official data showed. 

The latest figures from the Saudi Central Bank, also known as SAMA, showed that the education sector led the growth with a 96.8 percent surge in transactions, totaling SR196.8 million, following weeks of declines since the academic year started in August. 

Telecommunication spending followed, rising 17.4 percent to SR136.5 million. The public utilities sector recorded the third-largest increase, with a 13.9 percent jump to SR61.5 million. 

Expenditure on furniture saw the largest decline, dropping 11.7 percent to SR349.3 million during this period. 

Spending on electronic devices fell 8.4 percent to SR238 million, while clothing and footwear saw a 7.4 percent decrease to SR757.3 million. Recreation and restaurant expenditures also declined by 2.4 percent and 1.9 percent, respectively. 

These five sectors were the only ones to register declines, while the majority of industries experienced growth. 

In terms of transaction value, the food and beverages sector retained the largest share of POS spending, totaling SR2.22 billion, followed by restaurants and cafes at SR1.95 billion, and miscellaneous goods and services at SR1.77 billion. 

Spending in these top three categories accounted for approximately 43.3 percent, or SR5.9 billion, of the week’s total POS value. 

Geographically, Riyadh led POS transactions, representing 34.3 percent of the total, with spending in the capital reaching SR4.71 billion, the second-highest increase at 4.7 percent. 

Jeddah followed with a 2.2 percent rise to SR1.86 billion, accounting for 13.6 percent of the total. Dammam ranked third with SR697 million, recording the highest increase at 5.8 percent. 

Tabuk saw the third-largest spending increase, up 4.2 percent to SR276.2 million. Hail and Abha also experienced growth, with expenditures rising 1.7 percent and 0.5 percent to SR224.6 million and SR168.6 million, respectively. 

In terms of the number of transactions, Dammam saw the highest increase at 6.8 percent, reaching 9,112 transactions. Hail and Buraidah recorded the smallest increases at 2.9 percent each, with 4,046 and 4,964 transactions, respectively. 


Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire

Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire
Updated 09 October 2024
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Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire

Oil Updates – prices edge up after sliding on potential Israel-Hezbollah ceasefire

LONDON: Oil prices edged up on Wednesday as developments in the Middle East took center stage against cautious demand expectations and ahead of a government meeting on China’s fiscal policy.

Brent crude futures rose 45 cents, or 0.6 percent, to $77.63 a barrel by 10:03 a.m. Saudi time. US West Texas Intermediate futures rose 33 cents to $73.90 a barrel.

Prices had plunged more than 4 percent in the previous session on a possible Hezbollah-Israel ceasefire, but markets remain wary of a potential Israeli attack on Iran’s oil infrastructure.

“The everyday dilemma of ‘Middle Eastern headlines’ moving like a pendulum between ‘ceasefire talks’ and ‘further escalation in attacks’ has been distracting investors from reality ... Oil markets are twirled in sentiments of ‘buying the rumor’ and sidelining the real fundamentals that should matter,” said Phillip Nova senior market analyst Priyanka Sachdeva in an email.

The sell-off on Tuesday followed a rally that began after Iran launched a missile barrage at Israel on Oct. 1, culminating in an 8 percent gain on the week on Friday, the largest in more than a year.

Hezbollah officials on Tuesday appeared to back off from a truce in Gaza as a condition for a ceasefire in Lebanon. Hezbollah’s deputy leader Naim Qassem said he backed attempts to secure a truce in a televised speech, the first time the end of the war in Gaza was not mentioned as a pre-condition.

Also supportive for prices, China’s finance ministry will detail plans on fiscal stimulus at a highly-anticipated news conference on Saturday, the government’s main information office said on Wednesday.

Markets have been awaiting further news of fiscal support by Beijing to help China’s flagging economy, which in turn can stimulate oil demand. A press conference by the state planner on Tuesday had disappointed investors after it offered no big stimulus to revive economic growth.

OANDA’s senior market analyst, Kelvin Wong, expects a sideways trading pattern for the oil market in the short term, with WTI confined within a range of $73.15 to $78.30 a barrel, pending announcements on China’s new fiscal stimulus measures and developments in the Middle East.

On the demand front, data showed US crude oil stocks rose by nearly 11 million barrels last week, much more than analysts polled by Reuters had expected, according to market sources citing American Petroleum Institute figures on Tuesday. However, fuel stockpiles fell.

Weak demand continued to underpin the fundamental outlook. The US Energy Information Administration on Tuesday downgraded its 2024 forecast for global oil demand growth by 20,000 barrels per day, to 103.1 million bpd, because of weaker industrial production and manufacturing growth in the US and China.