The Mena region faces multiple challenges, from conflict to economic woes, humanitarian problems and mounting climate-related issues, all of which are exacerbated by a lack of cohesiveness. As the World Economic Forum’s forthcoming Special Meeting on Global Collaboration, Growth and Energy for Development in Riyadh highlights, not only must the region navigate this context, but also prepare for an emerging economic era, which could be called the “age of intelligent economies”. The idea behind intelligent economies is to have multiple intelligence systems – like artificial intelligence (AI), 5G and the internet of things (IoT) – working together, a situation that is more likely to result in far greater gains and innovations. Currently, however, these technologies are developing in isolation.
AI, particularly generative AI, is receiving a lot of attention, after leaping to the forefront of the wider consciousness during 2023 through apps like ChatGPT. These models are expected to develop to the point where they significantly boost productivity and growth, empower individuals and address major social challenges. Although the region’s take-up of the tools of the intelligent economy is, like much of the rest of the world, lacking uniformity and a coherent strategy, this hasn’t dampened prospects for parts of the region – growth figures for AI have the potential to reach $320 billion by 2030 – and notably, Saudi Arabia, in March, pledged a $40 billion AI investment fund.
The region is already using AI to address specific problems, including its rapidly dwindling supply of potable water. Growing water scarcity is a well-documented problem and it is estimated that by 2050, Mena will need an extra 25 billion cubic metres of water annually. This equates to 65 desalination plants the size of the world’s largest, Saudi Arabia’s Ras Al Khair plant. Currently, AI is being used to make the desalination process more cost effective and energy efficient. In time, it is envisaged that AI will optimise the process, reduce its environmental impact and help detect potential infrastructure vulnerabilities.
As real-world applications multiply for intelligent economy technologies, it is feared that their access and take-up, along with development and growth, will be uneven. For this region, looking at the issue and pace of digital transformation, attention is mainly focused on the Gulf. There has, for example, been significant investment in data centres in these countries since 2022, creating large-scale projects worth hundreds of millions of dollars.
Gulf states are also publishing plans for how modernise public services through technology. They are also producing measures to promote the growth of the ICT sector, supporting 5G adoption, enhancing the accessibility of digital services to their citizens and enacting accompanying legislation, particularly in data and cybersecurity. This activity isn’t mirrored in the poorer states.
To take full advantage of the benefits of intelligent economies, the region must pursue four key shifts. The first of these is to play to its strengths. Mena has a massive advantage in having cheap electricity and abundant, unused land, both of which are key inputs for data centres. It should more swiftly green its energy supply, which would in turn compound its natural advantages, resulting in a more sustainable, lower-cost energy market.
In terms of policy changes and underscoring its strong relations with countries and blocs as diverse as China, Europe and the US, this region would be well positioned to offer to both “greenshore” and “friendshore” critical industries, such as certain types of semiconductors. To support this transition, it should replace fossil fuel subsidies. The region has made progress in this area, according to the Forum’s Energy Transition Index 2023, but continues to spend $500 billion to $600 billion a year, money that could be better spent on social security or intelligent economy investment.
Secondly, the Mena region needs to pursue more initiatives that will support the push to make AI work in an inclusive and non-biased way. Currently, just 0.7% of the top content for large language learning (LLMs) models is in Arabic. In May last year, Abu Dhabi made its AI model, Falcon 40B, open source; in July 2023, Jais, the first LLM to support Arabic, was released; and in March this year, Saudi developers released Mulhem, an LLM trained exclusively using Saudi data sets. Mena is ideally placed – in terms of technological know-how and influence – to pursue this further.
This type of activity is ripe for public-private partnerships, as are the changes to facilitate intelligent economies more widely. This is an important third point and will require a significant shift in thinking. The changes that are under way are too large to be handled solely by the public sphere. The private sector needs to be a partner in this transformation, and in doing so, create a strong competitive advantage on the new-look global stage. In this regard, the recent announcement that Microsoft is investing $1.5 billion in Abu Dhabi’s AI group, G42, marks a step in the right direction.
A fourth important area is integration. Mena is one of the world’s least integrated regions with just 18% of intra-regional trade. Scale matters and the larger the market, the more attractive the region will become to investors. Mena operating as a region, rather than piecemeal, makes it more likely it can develop technologies that suit its needs. Its oil-rich states have the capital and talent to develop this type of policy, but it needs to extend this regionwide.
Integration would spread gains more equally throughout the region to support nascent strides that are made in countries like Morocco and Tunisia. The former recently inaugurated the Moroccan International Centre for Artificial Intelligence, aiming to transform the nation into a regional AI hub, while the Tunisian AI and tech sectors have made remarkable leaps; notably, German-based company BioNTech has acquired InstaDeep for $550m.
It is clear that intelligent economies potentially offer Mena a means to address some of its most pressing challenges. This potential can be realised if technologies are developed holistically and the region works together. Failing to do so threatens to exacerbate existing problems and scuttle wider progress. That’s why meetings like the one in Riyadh are ever-more important, providing an opportunity to harness dialogue and cooperation for the most pressing and contentious frontier technology challenges and opportunities.
THE BIO: Mohammed Ashiq Ali
Proudest achievement: “I came to a new country and started this shop”
Favourite TV programme: the news
Favourite place in Dubai: Al Fahidi. “They started the metro in 2009 and I didn’t take it yet.”
Family: six sons in Dubai and a daughter in Faisalabad
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
liverpool youngsters
Ki-Jana Hoever
The only one of this squad to have scored for Liverpool, the versatile Dutchman impressed on his debut at Wolves in January. He can play right-back, centre-back or in midfield.
Herbie Kane
Not the most prominent H Kane in English football but a 21-year-old Bristolian who had a fine season on loan at Doncaster last year. He is an all-action midfielder.
Luis Longstaff
Signed from Newcastle but no relation to United’s brothers Sean and Matty, Luis is a winger. An England Under-16 international, he helped Liverpool win the FA Youth Cup last season.
Yasser Larouci
An 18-year-old Algerian-born winger who can also play as a left-back, Larouci did well on Liverpool’s pre-season tour until an awful tackle by a Sevilla player injured him.
Adam Lewis
Steven Gerrard is a fan of his fellow Scouser, who has been on Liverpool’s books since he was in the Under-6s, Lewis was a midfielder, but has been converted into a left-back.
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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F1 2020 calendar
March 15 - Australia, Melbourne; March 22 - Bahrain, Sakhir; April 5 - Vietnam, Hanoi; April 19 - China, Shanghai; May 3 - Netherlands, Zandvoort; May 20 - Spain, Barcelona; May 24 - Monaco, Monaco; June 7 - Azerbaijan, Baku; June 14 - Canada, Montreal; June 28 - France, Le Castellet; July 5 - Austria, Spielberg; July 19 - Great Britain, Silverstone; August 2 - Hungary, Budapest; August 30 - Belgium, Spa; September 6 - Italy, Monza; September 20 - Singapore, Singapore; September 27 - Russia, Sochi; October 11 - Japan, Suzuka; October 25 - United States, Austin; November 1 - Mexico City, Mexico City; November 15 - Brazil, Sao Paulo; November 29 - Abu Dhabi, Abu Dhabi.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Miguel Cotto world titles:
WBO Light Welterweight champion - 2004-06
WBA Welterweight champion – 2006-08
WBO Welterweight champion – Feb 2009-Nov 2009
WBA Light Middleweight champion – 2010-12
WBC Middleweight champion – 2014-15
WBO Light Middleweight champion – Aug 2017-Dec 2017
Know your camel milk:
Flavour: Similar to goat’s milk, although less pungent. Vaguely sweet with a subtle, salty aftertaste.
Texture: Smooth and creamy, with a slightly thinner consistency than cow’s milk.
Use it: In your morning coffee, to add flavour to homemade ice cream and milk-heavy desserts, smoothies, spiced camel-milk hot chocolate.
Goes well with: chocolate and caramel, saffron, cardamom and cloves. Also works well with honey and dates.
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The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
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SPECS
Mini John Cooper Works Clubman and Mini John Cooper Works Countryman
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Transmission: nine-speed automatic
Power: 306hp
Torque: 450Nm
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Soldier F
“I was in complete disgust at the fact that only one person was to be charged for Bloody Sunday.
“Somebody later said to me, 'you just watch - they'll drop the charge against him'. And sure enough, the charges against Soldier F would go on to be dropped.
“It's pretty hard to think that 50 years on, the State is still covering up for what happened on Bloody Sunday.”
Jimmy Duddy, nephew of John Johnson
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