AI can affect job market positively, say experts at Global AI Summit

AI can affect job market positively, say experts at Global AI Summit
Experts said artificial intelligence would have an impact but probably in a positive way. (ANJ)
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Updated 12 September 2024
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AI can affect job market positively, say experts at Global AI Summit

AI can affect job market positively, say experts at Global AI Summit
  • AI’s wealth creation will need equitable distribution, says executive
  • Other experts believe firms will set right ethical ‘guardrails’ around AI

RIYADH: Fears that the adoption of artificial intelligence will result in widespread job losses are overstated and there are likely considerable benefits to be derived from integrating the technology in the workplace, said experts during a panel discussion at the third Global AI Summit in Riyadh on Thursday.

Dr. Richard Benjamins, the co-CEO of RISE.ai, said AI would have an impact but probably in a positive way. “Some jobs will maybe disappear, but a lot of new jobs will be created,” he said.

He said the obvious negative was that some may lose their jobs, but AI could lead to greater productivity and even three- or four-day weekends. An important question was who would benefit.

“The question is, really, the issue of distribution of wealth,” he said. “Clearly, we are on a trend where there are increasing gaps between countries, and the haves and the have-nots.

“And within the countries also, the distribution is going to a few. I think a lot of people are worried about this and this has a huge impact on society.”

Benjamins said that most companies would regulate themselves to ensure their employees are not hurt in any way. However, there was also the possibility that employees would reject AI for fear of how it might affect their livelihoods.

Dr. Heather Doman, IBM’s global leader, responsible AI initiatives, said: “People are generally concerned … But I also want to say that I don’t personally feel that we need to slow down.

“Generally, we have learned, as with other technologies, that we can innovate and set the right guardrails around it, and that is what I believe we’re going to see.”

Benjamins added that AI must be used ethically. “I think AI is all about creating value and increasing productivity, but sometimes, even though the intention is positive and the use is legitimate, there might be, let’s say, negative, unintended consequences.

“If you speak about ethical AI, it’s to make sure that those unintended negative consequences are mitigated or prevented. And that requires what we call a methodology for responsible use of AI.”

He said that inaccuracies in AI could have varying consequences. If a social media algorithm is 1 percent inaccurate, it was probably not a big problem. But if a manufacturing process or healthcare analysis is 1 percent inaccurate, it could have significant consequences.

Simon Turner of Sofinnova Digital Medicine said: “I think we should go the way we’re going with healthcare in general … We’ve always had the guiderails, quality assurance, quality management, ethics committee approval, you know, a lot of work that’s been done in this space.

“AI is yet another tool, but not important. We’re just adding the same approach we’ve been using for years, which is always thinking first about the patient. So for us, it doesn’t really change much.”

The article originally appeared on Arab News Japan


Saudi Arabia’s PIF expands green investments to $19bn across 91 projects

Saudi Arabia’s PIF expands green investments to $19bn across 91 projects
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Saudi Arabia’s PIF expands green investments to $19bn across 91 projects

Saudi Arabia’s PIF expands green investments to $19bn across 91 projects
  • Saudi sovereign wealth fund has allocated $457 million for these projects, with $372 million for eight green building projects
  • Remaining $18.9 billion were allocated to 73 under construction projects spanning the same categories

RIYADH: Saudi Arabia’s Public Investment Fund has expanded its green project investment plan to over $19.4 billion, covering 91 eligible projects in areas such as renewable energy and clean transportation.

In its second ‘Allocation and Impact Report,’ PIF provided an update on the allocation and impact of its green bonds as of June 30.

The new paper revealed that “PIF has currently identified a capital expenditure portfolio of over $19.4 billion of eligible green projects, of which $8.5 billion has been earmarked to be allocated under PIF’s two green bonds,” referring to those issued in 2022 and 2023 — totaling a combined $8.5 billion.

According to the report, there are 18 operational projects categorized under renewable energy, energy efficiency, green buildings, clean transportation, as well as sustainable water management, pollution prevention, and sustainable management of living natural resources and land use.

The Saudi sovereign wealth fund has allocated $457 million for these projects, with $372 million for eight green building projects.

The remaining $18.9 billion was allocated to 73 under construction projects spanning the same categories, with green buildings also taking the largest share at $6.3 billion for three projects.

Prominent green projects

PIF’s green bond proceeds are being funneled into a wide range of projects to reshape Saudi Arabia’s future. One of the most prominent undertakings is Red Sea Global, a tourism development owned by PIF. 

According to the report, PIF has allocated $1.7 billion of green financing for The Red Sea and AMAALA, as of 30 June 2024. 

PIF’s investment qualifies under the ‘Green Buildings’ category in the Green Finance Framework, which means that new or existing commercial or residential buildings must get a third-party certified green building standard to be eligible for funding.

The Framework published in 2022 is used as the basis to issue green bonds, sukuk, loans and other debt instruments, known as green financing instruments.

PIF said in the report that RSG is committed to regenerative tourism destinations that preserve and enhance the natural environment. 

Spanning 32,000 square km, RSG’s portfolio includes The Red Sea and AMAALA projects, which will offer up to 11,000 keys across 80 hotels, as well as residential and hospitality assets built with sustainability at their core.

As for the impact of this project, the report added that to date, “there are nine green buildings that are already operational, including four hotels, four residential clusters and one management office.”

On average, these buildings achieve 20 percent energy savings compared to conventional buildings, totaling 18,000 MWh per year. As these assets are independent of the national grid and are 100 percent solar powered, they avoid 36,000 tCO2e annually. 

“When all the assets are completed across both destinations, total avoided emissions will exceed 600,000 tCO2e per year,” the report said.

Under the “Sustainable Water Management” category, the report added the NEOM Water Distribution project. PIF’s contribution to this project included fully funding NEOM’s water transmission and distribution pipelines and allocating over $1 billion to support nine water transmission projects across the region. 

“This key category emphasizes that investments and expenditures in projects and infrastructure must enhance water-use efficiency,” the wealth fund said.

To date, a 12-bay tanker filling station supplying 18,000 cubic meters per day of potable water and a 30-kilometer section of distribution pipeline is already operational, the report revealed.

It said that an additional three filling stations and over 500 kilometers of water transmission pipeline are currently under construction, adding: “Once completed, these assets will improve resilience and support de-risking of water scarcity in Saudi Arabia.”

Measurable impact and ESG leadership

Projects funded by PIF’s green bonds are set to generate enough renewable energy to power 160,000 homes annually and save 7.7 million MWh through energy-efficient technologies, including the installation of over 211,000 energy-efficient bulbs and 6,000 HVAC systems.

In the area of water sustainability, PIF’s investments in desalination and wastewater treatment are projected to treat 49.4 million cubic meters of wastewater and desalinate 1.2 million cubic meters of seawater each year.

Green building projects funded by the bonds are expected to save 711,000 MWh annually, supporting Saudi Arabia’s efforts to cut energy consumption and carbon emissions.

PIF’s green finance strategy is also setting global benchmarks. As a founding member of the One Planet Sovereign Wealth Funds initiative, PIF is integrating climate change into its investment strategies.

Ranked seventh globally and first in the Middle East in the Global Sovereign Wealth Fund’s Governance, Sustainability, and Resilience Scoreboard, PIF’s efforts highlight its global environmental, social and governance leadership.

To ensure transparency and accountability, PIF has established an ESG and Sustainability Steering Group. 

The body meets quarterly to monitor fund allocation, track project impacts, and ensure all green bond investments align with PIF’s Green Finance Framework. This governance structure underscores PIF’s commitment to sustainability and strong ESG practices.
 
A global first for green bonds

In October 2022, PIF issued its first-ever $3 billion multi-tranche green bond, described as “the first green bond by a Sovereign Wealth Fund.” This was followed by a larger $5.5 billion offering in February 2023, both of which were well-received by global investors.

By June 2023, PIF had allocated $5.2 billion of the $8.5 billion raised to environmentally-focused projects. It had identified a green project portfolio worth $11.7 billion, with $8.5 billion designated for bonds.

Already, $1.3 billion has been used for initiatives like renewable energy, energy efficiency, and sustainable water management. 

Of the $706.2 million from the October issuance, $458.6 million went to green buildings, $138.2 million to energy efficiency, and $45.2 million to water management. Similarly, $629.2 million from the February issuance was allocated to renewable energy, energy efficiency, and clean transportation.

Unallocated funds are managed under PIF’s liquidity policy, ensuring all investments align with its ESG principles. Notably, the October issuance included a 100-year tranche, signaling PIF’s long-term commitment to sustainability.

The success of these bonds is evident in the February issuance being six times oversubscribed, with orders exceeding $33 billion, showing strong global investor confidence in PIF’s leadership in green financing.

Vision 2030 and PIF’s role in economic diversification

PIF’s green bond strategy is deeply intertwined with Saudi Arabia’s Vision 2030 — a transformative blueprint aimed at diversifying the country’s economy away from oil dependency and establishing new economic sectors that are future-facing and sustainable. 

PIF is tasked with leading the charge, playing a key role in supporting the nation’s commitment to achieving net-zero carbon emissions by 2060. 

The fund has set its target to reach net-zero emissions by 2050, positioning itself as an integral player in the global fight against climate change.

The organization’s mandate under Vision 2030 includes expanding non-oil gross domestic product, generating jobs, and enhancing local content, as well as nurturing a thriving private sector. 

PIF is attracting sustainable investments into Saudi Arabia’s eco-conscious economy by issuing green bonds and funding critical projects in renewable energy, energy efficiency, water management, and pollution control, among others. 

The initiatives are expected to contribute significantly to the Kingdom’s economic growth while ensuring environmental sustainability.


Saudi Arabia, Italy to enhance industrial ties during top official’s visit

Saudi Arabia, Italy to enhance industrial ties during top official’s visit
Updated 14 October 2024
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Saudi Arabia, Italy to enhance industrial ties during top official’s visit

Saudi Arabia, Italy to enhance industrial ties during top official’s visit

JEDDAH: Saudi Arabia and Italy are set to strengthen their industrial and mining ties thanks to a visit by a senior official of the Kingdom to the European country.

Commencing his trip on Oct. 14, Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef is set to explore mutual opportunities in key industrial sectors that align with the national strategy for manufacturing development, including the automotive, food, space, and marine industries.

The visit, which will continue until Oct. 16, includes stops in the capital, Rome, and Milan. It also aims to leverage the latest industrial innovation solutions and attract investments into promising sectors in Saudi Arabia, as stated by the Kingdom’s Ministry of Industry and Mineral Resources.

Saudi Arabia’s non-oil exports to Italy amounted to SR2.8 billion ($747 million) in 2023, while total non-oil imports from the European country reached SR21.8 billion during the same year.

The Saudi minister will engage with government officials and leaders in the private sector. He will also visit prominent Italian companies with the aim to facilitate knowledge transfer and smart manufacturing solutions for the Saudi industry while strengthening the economic ties between the two countries.

Alkhorayef is set to meet with Yousef Al-Mimni, vice chairman of the Saudi-Italian Business Council and will engage in discussions with Gilberto Pichetto Fratin, Italy’s minister of environment and energy security.

He is also scheduled to meet with Adolfo Urso, the minister of enterprises, to discuss enhancing industrial cooperation between the two nations.

Alkhorayef will further participate in a multilateral meeting organized by the Italian General Confederation of Industry, known as Confindustria, where he will engage with Barbara Cimmino, the federation’s vice president for export and investment attraction, along with prominent leaders from the Italian private sector.

The minister’s agenda includes a bilateral meeting in Rome with Toni Piech, chairman of Piech Automotive, a leading global automotive manufacturer, and Pierroberto Folgiero, CEO of Fincantieri, a company specialized in shipbuilding and marine products.

In Milan, Alkhorayef will kick off his visit with a tour of the Alessi Center, visit Leonardo’s aerospace division, and hold discussions with the company’s CEO.

The industry minister will also meet with Attilio Fontana, president of Lombardy’s regional government – whom he met in September – to explore ways to enhance bilateral ties in sectors crucial to the Kingdom’s Vision 2030 diversification strategy.

Alkhorayef is also scheduled to meet with Gianluca Di Tondo, CEO of Barilla, a leading food manufacturing company.


Qatar’s inbound visitors see annual surge of 24.5%

Qatar’s inbound visitors see annual surge of 24.5%
Updated 22 min 38 sec ago
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Qatar’s inbound visitors see annual surge of 24.5%

Qatar’s inbound visitors see annual surge of 24.5%
  • Highest number of visitors was from the GCC, representing 41% of the total
  • Air travel was the most popular method for visiting the country, accounting for 64% of all transit options

RIYADH: Qatar recorded a 24.5 percent annual increase in the total number of inbound visitors in August, reaching 328,000, new figures revealed. 

Data from the National Planning Council’s Monthly Statistics bulletin showed that the highest number of visitors was from the Gulf Cooperation Council, representing 41 percent of the total. 

Air travel was the most popular method for visiting the country, accounting for 64 percent of all transit options. 
The increase aligns with the goal of Qatar’s National Tourism Sector Strategy 2030 to welcome over 6 million annual visitors, positioning the country as the Middle East’s fastest-growing tourist destination. 

The bulletin further disclosed a monthly increase in total new driving licenses by 0.6 percent, along with an increase in total new registered vehicles by 11.3 percent, compared to July, with a registration of 8,605 new vehicles. 

In the banking sector, the broad money supply reached 731 billion Qatari riyals ($200 billion) in August, marking a 6.7 percent annual increase. 

Cash equivalents, including commercial bank deposits, totaled 1.035 trillion riyals in August, reflecting an 11.6 percent increase year on year. 

Regarding building permits, Qatar issued 721 approvals in August, representing an 8.3 percent annual increase. 

As part of its diversification efforts, the state is prioritizing the tourism sector, achieving a milestone by welcoming over 4 million visitors in 2023, the highest in five years. 

The achievement, reported by the Qatar Tourism Authority in January, highlights the country’s success in capitalizing on the momentum from the FIFA World Cup Qatar 2022, according to a press release issued at the time.  

The increase coincided with Qatar’s strategic move to streamline travel, notably by implementing the Hayya platform earlier in 2023, which simplified entry procedures for travelers. 

The initiative complemented Qatar’s liberal travel policies, allowing visas on arrival for citizens from 95 countries. 

A year-long calendar of events and engaging marketing campaigns has also played a vital role in boosting tourism. Since the start of last year, visitors from Saudi Arabia have led the influx, accounting for 25.3 percent of total international arrivals, the release added at the time. 

They were followed by travelers from India at 10.4 percent, Germany at 4.1 percent, the UK at 3.9 percent, and Kuwait at 3.5 percent. 


Top German executive sees Saudi facilities management sector doubling by 2030

Top German executive sees Saudi facilities management sector doubling by 2030
Updated 14 October 2024
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Top German executive sees Saudi facilities management sector doubling by 2030

Top German executive sees Saudi facilities management sector doubling by 2030

RIYADH: Saudi Arabia’s facilities management market is set to double in value by 2030, a Dussmann Group executive forecast as the company inaugurated its regional headquarters in Riyadh.

Hakan Lanfredi, executive board member of the Berlin-based firm, believes the industry in the Kingdom is currently worth $25 billion, but will see rapid growth by the end of the decade as Saudi Arabia pushes ahead with its numerous Vision 2030 projects.

Dussmann Group moved its regional headquarters to Riyadh from the UAE as it seeks to capitalize on the expansion of the Kingdom’s facilities management sector.

The company’s relocation to the Saudi capital is the latest in a line of firms opting to have their Gulf base in Riyadh, after the Kingdom launched a special initiative to attract multinational businesses.

Incentives – which have attracted the likes of PepsiCo, PwC, and Deloitte – include zero percent corporate income tax for 30 years, as well as the ability to bid for government contracts.

Speaking to Arab News at the inauguration of Dussmann Group’s new office, Lanfredi said: “I believe the need for facility management consulting is growing due to all of the projects.”

He added: “We see that there is a huge market potential here in KSA … it will reach almost $50 billion in 2030 – which is very huge.”

Reflecting on why the company moved from the UAE, Lanfredi was clear that to become one of the biggest players in the Saudi market, “we need to follow Vision 2030.”

He added: “The growth and expectations are huge, and the potential is huge … compared to the market in the UAE for example, who has the highest maturation in the GCC region.” 

Dussmann Group’s presence in Riyadh is part of a joint venture formed in 2020 with Saudi investment conglomerate Ajlan & Bros Holding.

Ajlan Al-Ajlan, group managing director of the firm, highlighted that this was the first JV the investment organization had been involved with.

When asked about the decision to move its headquarters from the UAE to Saudi Arabia, Al-Ajlan said: “We see the growth and we see the massive potential opportunities within KSA, and we wanted to make sure that we are being a part of it.”

Speaking on the topic of job creation, Al-Ajlan highlighted that the JV started with “a couple of hundreds” of employees, and as of today there are over 4,000 staff members.

“In the next three to four years we are aiming to have more than 10,000 employees and the majority will be in KSA, this shows the direct impact of moving the headquarters KSA reflects directly onto the job creation,” he said.

“Our aim is to capture a decent market share and to be one of the prominent players within the market,” the managing director said.

Al-Ajlan said his company’s aim is to capture a “decent market share” and to be one of the prominent players within the sector – and this will be helped by the expertise at Dussmann Group.

“We are not here to reinvent the wheel, they have their operation in more than 25 countries, with more than 60,000 employees so we are intending to have the know-how brought to the region and more specifically KSA,” Al-Ajlan said.

The German Ambassador to Saudi Arabia Michael Kindsgrab attended the ribbon-cutting ceremony as the guest of honor and described it as a “happy day for German-Saudi business relations.”

He added: “If we have such a performer taking foot in Saudi Arabia, opening its regional headquarters here, expanding into the region, moving from 4,000 to 10,000 jobs, I think this is nothing but good news.” 


Saudi Post set to unveil region’s largest super sorting center

Saudi Post set to unveil region’s largest super sorting center
Updated 13 October 2024
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Saudi Post set to unveil region’s largest super sorting center

Saudi Post set to unveil region’s largest super sorting center

RIYADH: Saudi Arabia’s national postal company is preparing to launch the region’s largest super sorting center by early next year as part of its transformation strategy.

Anef Abanomai, president of Saudi Post, shared details about the new center with Arab News during the inaugural Global Logistics Forum in Riyadh.

The official said the facility is expected to significantly enhance supply chain capabilities, reduce delivery times, and support the Kingdom’s growing role as a global logistics hub.

“We have a plan. We’re hoping to be launching our design phase for our super sorting center toward the end of this year, early next year, as soon as we’re done with some permits and logistics challenges there,” Abanomai said.

The president emphasized that the launch of the upgraded sorting center, the largest in the region, will significantly boost productivity and services while also reducing costs and improving delivery times.

Abanomai noted that the organization is transitioning from traditional manual sorting methods to an automated, robotics-based system as part of its digital transformation strategy.

Previously, sorting was performed by staff who manually categorized and redirected items, making the process labor-intensive and susceptible to human error.

“That’s not the most efficient way to do it. It’s very challenging in terms of scalability and introduces a lot of risk for inconsistency, and mistakes happen that increase the cost,” Abanomai said.

He added: “Part of our digital transformation and automation roadmap was the introduction of robotics as a solution to improve our sorting, operation and process, which has been successful in deployment. Now, we’ll begin to gauge the impact on our efficiency cost to serve the resiliency of the service.”

According to Abanomai, Saudi Post is undergoing a significant transformation from a traditional postal operator, focused primarily on letters and stamps, to a comprehensive logistics provider.

This shift aligns with Saudi Arabia’s Vision 2030, leveraging the Kingdom’s strategic geographical position to connect three continents and enhance trade across various sectors.

Abanomai emphasized the necessity to expand and invest in various capabilities, particularly in logistics.

“When we talk about ports—seaports, airports, and land ports—there is a need to enhance and develop these areas to facilitate a more efficient and effective movement of goods and people, ultimately improving connectivity,” he stated.

He continued: “That will have a positive impact on many different industries, whether it’s trade, industrial manufacturing, mining, any industry, you can think of potentially will have an impact, through these capabilities that are being brought and invested in the country.” 

Another key catalyst for SPL’s transformation was the pandemic, which accelerated the organization’s shift and prompted the development of healthcare logistics solutions.

Abanomai explained that during COVID-19, government hospitals faced challenges in providing medications to patients due to restrictions on visits. In response, SPL implemented a rapid solution to deliver medications directly from hospital pharmacies to patients’ homes. Beyond healthcare, SPL has also expanded into innovative logistics operations.

“Over the past year, we’ve moved not just letters, electronics, and medications but also horses for the Saudi Cup, the world’s most prestigious horse race,” Abanomai said. 

He added: “This is just one example of how our logistics arm is helping position SPL as a leader in multiple sectors.”

The transformation involves leveraging existing capabilities and new investments to offer a broader range of services beyond what is typically expected from a postal operator.

One key example that he provided is SPL’s involvement in e-commerce logistics. The organization supports merchants by improving their access to customers, particularly through enhanced last-mile delivery solutions and sorting capabilities.

One of the biggest challenges facing the postal and logistics industry today is meeting evolving customer expectations, according to Abanomai.

“There’s always demand for faster, bigger, and less expensive services,” he said. 

Customers are also seeking more control, customization, and flexibility in the services they receive, which adds significant pressure on logistics providers. Balancing these demands with the operational realities is also complicated.

“The way logistics operations work is really through economies of scale,” Abanomai said.

To remain efficient, companies must invest in large-scale solutions and standardized processes, which can create tension as customers increasingly expect tailored and flexible services. A significant challenge for SPL and other logistics providers is the need to adapt swiftly to these changing expectations while maintaining operational efficiency.

“How do we create these solutions that are customizable, more efficient, and allow the control, at least the perception of control, for our clients and give them that ability to customize to their needs, without disrupting these standardized processes that the logistics providers have,” Abanomai said.