Saudi Arabia in prime position to become global leader in AI regulation, expert says

1 / 2
The Saudi Authority for Data and Artificial Intelligence, which oversees and manages the development and use of AI in the Kingdom, has undergone amazing growth and is leading that mandate. (SPA)
2 / 2
The Saudi Authority for Data and Artificial Intelligence, which oversees and manages the development and use of AI in the Kingdom, has undergone amazing growth and is leading that mandate. (SPA)
Short Url
Updated 04 February 2024
Follow

Saudi Arabia in prime position to become global leader in AI regulation, expert says

  • Author and technology futurist Ian Khan says the Kingdom is doing a lot with AI in terms of setting the standards
  • ‘Jobs will transform into AI, which doesn’t mean people will lose their jobs but that the industries in Saudi Arabia will benefit from the creation and deployment of AI,’ he says

LONDON: Saudi Arabia is well placed to become a global leader in the regulation of artificial intelligence by initiating the discussions that will help craft a consensus on how such rules should operate, an expert on the emerging technology said.

Ian Khan, a technology futurist and author who writes on the subject of AI, told Arab News that the Kingdom is “doing a lot with AI” in terms of setting the standards, and is “in a position to take leadership and ownership of setting the framework for AI regulations at a global level.”

He added: “This is where AI regulations can start and this is where the discussion and dialogue for AI regulations can begin, because this is where AI is being implemented in everyday life.”

The Saudi Authority for Data and Artificial Intelligence, which oversees and manages the development and use of AI in the Kingdom, has undergone “amazing growth” and is “leading that mandate” in the country, he said.

In 2020, Khan predicted that AI technology will increasingly become a dominant force in the job market in Saudi Arabia, and said authorities in the Kingdom envision the nation becoming a global leader in AI.

“Jobs will transform into AI, which doesn’t mean people will lose their jobs, but that the industries in Saudi Arabia will benefit from the creation and deployment of AI,” he said.

“You look at (smart city projects in Saudi Arabia) like NEOM, which is so complex, or The Line, they are all driven by artificial intelligence, from managing transportation systems to managing homes.

“We need to have those (AI) regulations in place and at this moment in time, one of the countries from the Middle East will be the one that will start AI regulations.”

It might be Saudi Arabia that fills this role, or the UAE, or both of them working together, because the rules governing AI are beyond the scope of just a single government to decide, Khan added.

“But I think a collaborative force needs to emerge from the Middle East and I think (Saudi Arabia) is in a good position to do it,” he said. 

Khan, who is the CEO of Toronto-based technology-advisory firm Futuracy, said the US is lagging other countries in terms of implementation of AI, although the research and knowledge are available and being utilized by some of the biggest companies, but he predicted that “regulations-wise, it’s going to be a nightmare.”

He added: “There’s no regulation on AI, there’s no privacy control, there’s no intellectual property rights on AI, and there are many other issues.”

Still, Khan expects major growth in the use of AI, particularly in Saudi Arabia, where he said curiosity about how the technology will affect aspects of daily life has spiked in the past year.

For example, authorities in the Kingdom have announced plans to develop electric vehicles and the infrastructure for autonomous transportation, in other words, driverless vehicles that utilize AI technology, alongside wider plans to manufacture more than 300,000 cars a year in the country by 2030

Hyundai Motor Group and Lucid Motors have both signed agreements to build manufacturing plants in Saudi Arabia. Meanwhile, Ceer Motors, the first Saudi electric vehicle brand, was founded in 2022 and plans to begin sales in Middle Eastern markets by 2025.

Saudi Arabia is also “building the largest network of EV charging stations in the Middle East,” Khan said, and has established the Electric Vehicle Infrastructure Co. to promote the provision of fast-charging points in all regions of the Kingdom.

And in October 2023, Saudi developer Red Sea Global implemented the largest off-grid electric vehicle charging network in the Kingdom, a move seen as a significant stride toward sustainability.

“You are looking at AI technologies permeating the lives of everyday people, so we have to have regulations, guard rails, protections and safety mechanisms in place,” Khan said.

“Everybody’s loving the growth, and the attention that the (Saudi) leadership is giving to initiatives. There are organizations and sectors, such as energy and manufacturing, that are the stable ones that have been in the Kingdom for decades, and they are growing, but then they are now also investing in sustainability.

“They are looking at carbon footprints … and you’ve got initiatives that are not just about the youth but about growing talent, and that is happening through funding of different agencies.

“But it’s the convergence right now that you’re seeing, and the growth, in the tech sector. For example, King Abdullah University of Science and Technology or Aramco Ventures are really putting in a lot of investment in new, innovative technologies,” Khan continued.

You are looking at AI technologies permeating the lives of everyday people, so we have to have regulations, guard rails, protections and safety mechanisms in place.

Ian Khan, Technology Futurist and Author

“Saudi Arabia is looking to position itself not just as a G20 player, but probably one of the biggest players in the world when it comes to the economy being a financial hub. They’re also looking at climate change, looking to be leaders in oil and gas, but also alternative energy, and in the cultural fields, and the political field as negotiators between conflicting parties.”

Khan praised the Future Investment Initiative — a nonprofit organization launched in 2017 by the Saudi Public Investment Fund and dubbed the “Davos of the Desert” — for the “world-class and pure quality of content, ideas and thought leadership” that takes place at its annual forum, during which major global announcements are made each year.

In terms of developments in the Kingdom in the short term, Khan predicted that Saudi Arabia will have a regulatory framework for AI in place within one or two years, if not sooner.

Looking further ahead, he said: “By 2030, we are looking at some parts of these large infrastructure projects to actually be on stream and to be live and working, so you’re looking at AI being functional in those areas.

“By 2030, I am envisioning that the job market in Saudi will be driven by AI. In terms of AI, talent is needed. Data scientists are needed. People who can use AI in a better way are needed. People, leaders, engineers, doctors who are able to work with AI for their jobs are needed. So AI skills are going to be in demand.”

FASTFACT

Emerging Technologies

In 2020, Khan predicted that AI technology will increasingly become a dominant force in the job market in Saudi Arabia, and said authorities in the Kingdom envision the nation becoming a global leader in AI.

The pace of development of the technology will accelerate in general, he said, with applications in the fields of healthcare and curing diseases, child development, education, tourism, climate change, the food industry, transportation and manufacturing.

“Technology has been evolving at an exponential pace over the past 30 to 40 years, and now we are entering an era of the next machine age, or the fifth industrial revolution, where a lot of our world is going to be automated using artificial intelligence,” said Khan.

“By 2040, I believe that we will have mastered AI regulation, have frameworks and policies that protect people, have formalized and deployed global rules and laws that not just govern people in a country or a region, but globally.”

The majority of the world is increasingly going to be automated and there will be a tool for everything, he added, which will result in what he called “the integration of things,” whereby one or two systems will essentially control everything we use, so that use of numerous different applications is no longer required.

“By 2040 we will also see a lot more intuitive and experiential services that will be part of an AI-driven future, so that the quality of life of people will be much better than it is today,” he predicted.

 

FASTFACTS

In 2020, Khan predicted that AI technology will increasingly become a dominant force in the job market in Saudi Arabia, and said authorities in the Kingdom envision the nation becoming a global leader in AI.


Closing Bell: TASI edges up to close at 12,460 points

Updated 5 sec ago
Follow

Closing Bell: TASI edges up to close at 12,460 points

RIYADH: Saudi Arabia’s Tadawul All Share Index climbed on Wednesday, gaining 102.12 points, or 0.83 percent, to close at 12,460.11.

The total trading turnover of the benchmark index was SR8.189 billion ($2.18 billion), as 138 of the listed stocks advanced while 81 retreated.   

Similarly, the MSCI Tadawul Index increased by 9.75 points, or 0.63 percent, to close at 1,557.46.

The Kingdom’s parallel market Nomu also climbed by 144.95 points, or 0.54 percent, to close at 26,886.59. This comes as 32 of the listed stocks advanced while as many as 35 retreated.

The best-performing stock of the day was Acwa Power Co., whose share price surged by 9.7 percent to SR438.80.

Other top performers include Alkhaleej Training and Education Co. and the Mediterranean and Gulf Insurance and Reinsurance Co., whose share prices soared 8.92 percent and 8.09 percent to SR37.25 and SR34.75, respectively.

Additional top performers include Al-Baha Investment and Development Co. and Malath Cooperative Insurance Co.

The worst performer was Nahdi Medical Co., whose share price dropped by 2.48 percent to SR133.60.

Other poor performers were the Co. for Cooperative Insurance as well as Jabal Omar Development Co., whose share prices dropped by 2.42 percent and 2.32 percent to stand at SR161 and SR27.40, respectively.

Additional poor performers include United Cooperative Assurance Co. and AlSaif Stores for Development and Investment Co.  

On the announcements front, Al Rajhi Bank announced its intention to issue US-denominated additional tier-1 capital sukuk under its international additional tier-1 capital sukuk program established on April 18 following the board of directors’ decision on March 25.

The bank informed Tadawul that the value and terms of the sukuk offering would be decided based on current market conditions.

The sukuk will be issued through a special-purpose vehicle and will be accessible to qualified investors, both domestically and internationally.

The bank appointed Al Rajhi Capital, Citigroup Global Markets Ltd, Dubai Islamic Bank, and Emirates NBD, as well as Goldman Sachs International, HSBC, and Standard Chartered Bank, as joint lead managers and bookrunners for the potential offering.

Nahdi Medical Co. announced its results for interim financial results for the period ending on March 31, with revenues surging by 7.24 percent to reach SR2.257 billion, compared to SR2.105 billion in 2023.

The increase was primarily driven by a strong performance in the core pharma segment and a solid recovery in front shop segment led by the beauty categories.

However, the company’s net profits decreased in the first quarter of this year to SR232.9 million, marking a 4.67 percent decline compared to the same quarter in 2023.

Saudi Telecom Co. also announced its financial results for the same period with earnings increasing 5.07 percent compared to the same quarter last year, reaching SR19.1 billion.

Saudi Real Estate Co. also announced its financial results for the same period, with revenues surging by 8.8 percent to reach SR427.6 million, compared to SR393 million in 2023.

The revenue growth was mainly attributed to the increase in stc Saudi Arabia earnings by 1.2 percent, driven by the rise in commercial unit revenues by 6.7 percent and carriers and wholesale unit incomes by 5.7 percent, which offset the decline in business unit revenues. 

Furthermore, stc’s subsidiaries’ gains also increased by 13 percent.

Halwani Bros. Co.’s earnings increased by 5.93 percent to SR270.36 billion compared to SR255.22 billion in its interim financial results, which ended March 31.

The reason for the increase in sales during the current quarter compared to the same period of the previous year is due to a rise in the company’s transactions in the Kingdom and its subsidiary in Egypt.


Saudi Arabia achieves highest evaluation level in UN’s Competition Law Systems Report

Updated 49 min 3 sec ago
Follow

Saudi Arabia achieves highest evaluation level in UN’s Competition Law Systems Report

RIYADH: Saudi Arabia has received global recognition from a UN commission for its robust legal framework and “very strong” competition law.

The Kingdom attained the highest evaluation level in the Competition Law Systems Report for 2023, issued by the UN Economic and Social Commission for Western Asia, surpassing the “developed” level achieved in 2020, according to the Saudi Press Agency.

The Competition Law Index measures the strictness of regulations and is categorized according to the maturity of eight key criteria. 

The Kingdom achieved a perfect score of seven in the index concerning regulatory frameworks for economic concentration operations.

Saad Al-Masoud, the spokesperson for the General Authority for Competition, affirmed that this advancement reflects the support GAC receives from the wise leadership to achieve the goals of Vision 2030 programs.

He added that these objectives aim to improve a sustainable business atmosphere, foster economic growth, and advance consumer welfare.

Al-Masoud further noted that this achievement is the result of significant developments in several areas, including laws combating monopolistic practices and anti-competitive agreements, as well as his authority’s efforts to review economic concentrations.

He also said that several additional factors have contributed to upholding the competitive landscape of the business sector, ensuring fairness, transparency, and adherence to reasonable competition regulations.

An initial competition system was established in Saudi Arabia in 2004, and in October 2017 the Kingdom’s Council of Ministers endorsed the change of the name to the GAC and a new organizational structure.

The authority was also made a financially and administratively independent entity, and in March 2019, another royal decree was issued approving the updated competition system.

Since its inception 20 years ago, GAC has imposed fines totaling nearly SR1 billion ($270 million) on around 252 companies found to be violating its regulations, according to a recent interview Al-Masoud conducted with Arab News. 

As a prominent regulatory body, it aims to safeguard the integrity of market mechanisms while fostering innovation and diversity in products and services.


stc Bank set to launch later this year, says group CEO  

Updated 08 May 2024
Follow

stc Bank set to launch later this year, says group CEO  

RIYADH: Saudi telecom giant stc Group has obtained official approval for the soft launch of its new banking sector subsidiary, aiming to provide Shariah-compliant fintech solutions. 

The Saudi Central Bank has given the green light for the beta launch of stc Bank, with a full rollout to all customers anticipated later this year, revealed the company's CEO, Olayan Al-Wetaid, while announcing the financial results of the first quarter. 

The new entity will offer banking services and financial solutions compliant with Islamic Shariah, prioritizing high security and customer protection through advanced fintech. This aligns with the ambitious goals of the Kingdom’s Vision 2030 for a prosperous diversified economy. 

In its financial results announcement for the period ending March 31, the CEO explained that stc Group has strengthened its position in the telecommunications sector through a strategic partnership with the Public Investment Fund.   

Earlier in April, the two entities finalized agreements for PIF to acquire a 51 percent stake in the Telecommunications Towers Co., also known as Tawal, valuing the company at SR21.94 billion ($5.8 billion).  

This transaction is part of a broader merger with Golden Lattice Investment Co. to form a new entity that aims to lead the national telecommunications infrastructure, with stc Group retaining a 43.06 percent stake.  

These developments are part of stc’s DARE 2.0 strategy, which focuses on unconventional growth paths and leading digital transformation in the region, Al-Wetaid stated.   

The strategy has already yielded significant results, with stc’s network experiencing its highest volume of voice calls during the recent Ramadan, a 35 percent increase compared to the previous year, supported by modern digital voice technologies.  

Further embodying its growth strategy, stc Group has engaged in numerous strategic partnerships and agreements, notably at the LEAP 2024 conference with global tech giants such as Huawei, Ericsson, and Samsung.   

These collaborations are designed to enhance innovation and speed up digital transformation across the region.   

Additionally, the group’s subsidiary, Solutions, signed a memorandum of understanding with the French Devoteam Group in February to explore IT investment opportunities globally, following Solutions’ acquisition of a 40 percent stake in Devoteam Middle East.   

In its financial report, stc Group highlighted a notable growth in revenues for the first quarter of 2024, which increased by 7.76 percent compared to the previous quarter and by 5.07 percent compared to the same quarter last year, totaling SR19.1 billion.   

This revenue growth was primarily driven by a 1.2 percent increase in stc Saudi Arabia’s revenues, supported by a 6.7 percent rise in commercial unit revenues and a 5.7 percent increase in carriers and wholesale unit revenues, despite a decline in business unit revenues.   

Additionally, revenues from stc’s subsidiaries saw a significant rise of 13 percent.  

The company also reported growth in gross profit, which rose by 5.13 percent compared to the previous quarter and by 1.65 percent compared to the same quarter last year, reaching SR9.3 billion.   

Earnings before interest, taxes, zakat, depreciation, and amortization similarly showed a robust increase, rising by 16.3 percent compared to the previous quarter and by 2.07 percent compared to the same period last year, reaching SR6.4 billion.   

Notably, net profit for the quarter surged by 44.50 percent compared to the previous quarter and increased by 5.69 percent compared to the same quarter last year, totaling SR3.2 billion.   


Saudi Arabia poised to elevate US AI infrastructure, Alat CEO says

Updated 08 May 2024
Follow

Saudi Arabia poised to elevate US AI infrastructure, Alat CEO says

RIYADH: Saudi Arabia has the potential to serve as a crucial contributor and advocate for the development of US artificial intelligence infrastructure, according to a top official.

Speaking at the Milken Institute Global Conference in California, Alat CEO Amit Midha discussed the company’s future endeavors and collaborations with global partners in the technology sector in an interview with Bloomberg.

Launched by Saudi Crown Prince Mohammed bin Salman, Alat plays a significant role in manufacturing semiconductors and various smart technologies, including advanced industrials and next-gen infrastructure.

Midha told the event: “We can be meaningful builders and supporters for US captaincy of building AI infrastructure.”

Saudi Arabia’s ambitions in advanced technology extend to establishing data centers, nurturing AI enterprises, and bolstering semiconductor manufacturing, according to Bloomberg..

In a parallel development, the US has urged Abu Dhabi-based AI firm G42 to divest from Chinese technology. This move, in exchange for continued access to US systems powering AI applications, paved the way for a significant $1.5 billion investment from Microsoft Corp. in G42.

Speaking on partnerships with the US and China, Alat’s CEO said: “So far, the requests have been to keep manufacturing and supply chains completely separate, but if the partnerships with China would become a problem for the US, we will divest.”

According to Bloomberg reports, US officials have been engaging with their Saudi counterparts, emphasizing the necessity for Saudi Arabia to opt between Chinese and American technology as it seeks to advance its semiconductor industry. These discussions are part of broader dialogues concerning national security.

Midha highlighted the importance of forging secure and reliable partnerships with the US.

“The US is the number one partner for us and the number one market for AI, chips and semiconductor industry,” he emphasized.

Meanwhile, Alat is poised to unveil partnerships with two US tech companies by the conclusion of June, with plans for co-investment alongside a US firm. 

According to Bloomberg, Midha has refrained from disclosing the names of the companies involved or specifying whether the collaborations are focused on AI, chips, or a combination of both.


Energy deals with Brazil, Japan, and Jordan signed off by Saudi Cabinet

Updated 08 May 2024
Follow

Energy deals with Brazil, Japan, and Jordan signed off by Saudi Cabinet

RIYADH: Saudi Arabia has approved economic and energy deals with several countries including Jordan, Brazil, and Japan, during its latest Cabinet meeting.

An agreement between the central banks of the Kingdom and Qatar focusing on cooperation in financing operations was also among the deals endorsed.

The meeting also approved various agreements between the Saudi government and other countries, including Oman, Georgia, and Morocco. 

The Council of Ministers discussed updates on the Kingdom’s cooperation with various countries worldwide, focusing on efforts to enhance bilateral and collective work across multiple fields. 

Among them were agreements reached between the Kingdom and both Uzbekistan and Azerbaijan in the field of energy.

These accords reflect a commitment to the sustainability and stability of petroleum markets. They also aim to advance cooperation in clean energy sectors, contributing to a globally organized energy transition. Additionally, they seek to build a more sustainable future for the three countries and the world. 

In his statement to the Saudi Press Agency following the session, Minister of Media Salman Al-Dosari highlighted the Council’s appreciation for the results of the recent Arab conferences in Riyadh focused on environmental matters.  

He added that the Cabinet stressed the Kingdom’s keenness to partner with regional and global entities to bolster agriculture, food security, and water resources, aligning with the country’s sustainable development goals. 

During the session, the Council of Ministers cleared various agreements including an energy cooperation deal between Saudi Arabia and Jordan, as well as a memorandum of understanding between the Saudi Ministry of Energy and Brazil’s Ministry of Mines and Energy.

The Cabinet also endorsed two cooperation pacts between the Saudi Ministry of Industry and Mineral Resources and both Morocco’s Ministry of Energy Transition and Sustainable Development, and Japan’s Ministry of Economy, Trade and Industry. These pacts relate to the fields of mineral wealth, mining, and mineral resources. 

Moreover, it cleared the Kingdom’s accession to the Geneva Act of the Hague Agreement concerning the international registration of industrial designs. 

Additionally, the Cabinet approved the implementation of a decision made by the Gulf Cooperation Council states’ Financial and Economic Cooperation Committee regarding the final draft for exempting industrial inputs from fees. This decision was made during the committee’s 120th meeting, held in October 2023 in the Omani capital, Muscat.