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Eye On AI

Sustainability at the forefront of digital transformation

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Natalya Makarochkina
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Author
Natalya Makarochkina

Sustainability at the forefront of digital transformation

Author
Natalya Makarochkina
Sustainability at the forefront of digital transformation
To successfully leverage AI, companies need to ensure that sustainability remains at the forefront of decision making.
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https://arab.news/vt3st

As organizations worldwide invest in increasingly diverse applications of AI, from portfolio optimization to supply-chain management and executive decision-making support, there is little doubt that AI is here to stay and adoption will only grow.

Estimates from International Data Corporation, a market intelligence business, suggest that in 2023, enterprises worldwide spent $166 billion on AI solutions — software, hardware and services. This figure is expected to grow by 27 percent per year to reach $423 billion by 2027.

According to a recent report by PwC, the generative AI market in the Gulf region alone could be worth up to $24 billion by 2030. Various states in the region have made major investments in AI, committing significant resources.

Saudi Arabia has established the Saudi Authority for Data and Artificial Intelligence, the UAE has a minister of state for artificial intelligence at the nation’s AI Office and Qatar launched its Artificial Intelligence Committee in 2019.

Overall, PwC predicts the Middle East will accrue 2 percent of the total global benefits from AI by 2030, worth about $320 billion.

However, new data centers and digital infrastructure will be required to support the unique technical requirements of this expansion — built at scale quickly, efficiently and with resiliency. In the process, these developments will create sustainability challenges.

Schneider Electric, which specializes in digital automation and energy management, has found that AI workloads present specific demands and disruption challenges that many data center owners and operators might not be prepared for.

If businesses with IT portfolios that include data center facilities are unable to cope with the demands created by AI, they risk missing out on business opportunities and potentially jeopardizing their sustainability goals.

One hyperscale operator reportedly experienced a 48 percent increase in emissions in the space of five years as a result of the AI data center boom.

If companies are to successfully leverage AI, it is important to ensure sustainability remains at the forefront of decision making by allowing those who are developing or transforming existing facilities, or designing new ones, to do so confidently to keep pace with market growth.

Schneider Electric is one of the companies that provides resources designed to empower chief information officers and IT executives and help them achieve their requirements.

We have established a partnership with Nvidia that brings together a wealth of cutting-edge expertise in the field of AI to build on our existing research and ensure not only that data centers can accommodate AI, but that they are also optimized for it.

We see a future in which AI is deployed in combination with edge computing to provide the power of the technology closer to where the data is generated and services consumed. The benefits of this include low latency for the utilization of real-time data and emerging technology devices.

It is expected AI will also play a crucial role in sustainability efforts more generally. With emissions targets and deadlines looming, businesses will increasingly seek to better measure, manage and reduce their emissions, and the specific capabilities of AI to capture, analyze and distill large volumes of data into actionable insights will be invaluable.

The effects of AI are already being felt and experienced all around us. It is yet another tool that has been added to the business toolbox to help us tackle the challenges and opportunities created by digital transformation and the increasing digitalization of society and the economy.

Businesses such as Schneider Electric are working hard to make it more understandable, accessible and available to organizations through research, resources and partnerships, so that we can all engage with AI confidently, securely and sustainably.

• Natalya Makarochkina is senior vice president of the secure power division of international operations at Schneider Electric

 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
Updated 3 min ago
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Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation

Pakistan holds inaugural ‘Aman Dialogue 2025’ to foster international maritime cooperation
  • Aman Dialogue brings together chiefs of navies, coast guards and defense forces from Feb. 9-10
  • Conference to focus on piracy, narco-trafficking and resource exploitation maritime challenges
Updated 3 min ago
Arab News Pakistan

ISLAMABAD: Pakistan held the inaugural session of the Aman Dialogue 2025 in Karachi on Sunday to foster international maritime cooperation among several countries around the world, stressing the importance of “unhindered activity” in seas to promote economic cooperation. 

The Aman Dialogue is being held from Feb. 9-10 and brings together chiefs of navies, coast guards and defense forces. It aims to provide them an opportunity to exchange views on global and regional security and adopt innovative solutions. 

This year’s conference is themed: “Secure Seas, Prosperous Future,” and focuses on security challenges in the Indian Ocean. These include strategic competition, piracy, narco-trafficking, non-state actors, resource exploitation, climate change, emerging technologies such as AI and unmanned systems, the blue economy and the need for global collaboration to ensure stability and prosperity.

“The global economic system is almost wholly dependent upon unhindered activity in the maritime domain,” Defense Minister Khawaja Asif said at an event held to mark the opening of the dialogue. 

“The uninterrupted use of seas and oceans remain the strategic interests of all nations,” he added. 

Asif called on countries to synergize their efforts to extract greater economic gains, saying that the maritime domain is at a “critical crossroads.”

“Our oceans carrying over 80 percent of global trade represent not only shipping lanes but the arteries of global prosperity,” the minister said, adding that the Indian Ocean alone holds over 50 percent of global oil and gas reserves. 

The dialogue coincides with the AMAN-25 multinational naval exercise, which kicked off on Friday in Karachi. Pakistan Navy’s fleet commander lauded the participation of 60 nations on Friday, hailing it as a testament to the world community’s desire for peace.

The Pakistan Navy has conducted the AMAN maritime exercise every two years since 2007 under the theme “Together For Peace,” involving ships, aircraft and special operations forces.

Topics: Aman Dialogue 2025 Pakistan

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
Updated 1 min 50 sec ago
NOUR EL-SHAERI   
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Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh

Saudi PIF’s Alat and Lenovo break ground on new 200k sq. meter facility in Riyadh
  • Facility is expected to begin production in 2026
  • Collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs
Updated 1 min 50 sec ago
NOUR EL-SHAERI   

RIYADH: Saudi Arabia’s Public Investment Fund’s Alat and Chinese tech giant Lenovo have officially broken ground on a new manufacturing hub in Riyadh, marking a key milestone in their $2 billion strategic partnership.

Located within the Special Integrated Logistics Zone at Riyadh Integrated, the facility will span 200,000 sq. meters and is expected to begin production in 2026. 

The collaboration is projected to generate up to 15,000 direct and 45,000 indirect jobs while contributing as much as $10 billion to the Kingdom’s non-oil gross domestic product by 2030. 

The hub will produce millions of “Saudi Made” laptops, desktops, and servers, contributing to the nation’s Vision 2030 goals of economic diversification and industrial development. 

The two companies took a step further in their partnership during LEAP25 held from Feb. 9— 12 in Riyadh, announcing the establishment of an advanced manufacturing and technology center based on artificial intelligence and robotics. 

This is also part of PIF’s strategy to boost the Kingdom’s local manufacturing by increasing local content from 47 percent in 2024 to 60 percent by 2025, contributing $320 billion to non-oil GDP and creating 1.8 million jobs. 

“Through this powerful strategic collaboration and investment with Alat, we gain greater global presence, a strong regional foothold, and the ability to capitalize on the incredible growth momentum in Saudi Arabia and the wider MEA region,” said Yuanqing Yang, chairman and CEO of Lenovo. 

The groundbreaking follows the completion of Lenovo’s $2 billion investment in Alat, which was finalized after securing shareholder and regulatory approvals. 

Initially announced in May, the deal was completed in January and involves the issuance of three-year zero-coupon convertible bonds, establishing a long-term partnership between the two firms. 

The manufacturing facility will complement Lenovo’s global production network, which includes over 30 factories across China, Germany, India, Japan, the US, and other markets. 

According to Lenovo, the new hub will enhance supply chain resilience and improve service to customers across the Middle East and Africa region. 

The firm also plans to establish its MEA regional headquarters in Riyadh, expand research and development activities, and open a flagship retail space in the Kingdom. 

Amit Midha, the CEO of Alat, emphasized the broader economic impact of the collaboration, saying: “We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company.” 

Beyond manufacturing, the agreement includes a business development partnership leveraging Alat’s regional relationships and market expertise.

Alat, which aims to build advanced manufacturing capabilities across multiple industries, has outlined plans to produce goods across 34 product categories within nine business units, including semiconductors, smart devices, electrification, and artificial intelligence infrastructure. 

Lenovo, recognized as one of Gartner’s top 25 supply chains, expects the Saudi facility to strengthen its operations in the MEA region while supporting the Kingdom’s ambition to become a global technology and manufacturing hub. 

Topics: Saudi Arabia's Public Investment Fund (PIF) Alat Lenovo Saudi Arabia

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Sotheby’s ‘Origins’ auction in Diriyah achieves more than $17 million in sales, with Saudi artists shining

Sotheby’s ‘Origins’ auction in Diriyah achieves more than $17 million in sales, with Saudi artists shining
Updated 8 min 37 sec ago
Ghadi Joudah
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Sotheby’s ‘Origins’ auction in Diriyah achieves more than $17 million in sales, with Saudi artists shining

Sotheby’s ‘Origins’ auction in Diriyah achieves more than $17 million in sales, with Saudi artists shining
Updated 8 min 37 sec ago
Ghadi Joudah

RIYADH: Sotheby’s inaugural auction in Saudi Arabia, titled “Origins,” concluded on Saturday with a total of $17,283,840 in sales in the fine art and luxury categories.

The historic event at Diriyah’s Bujairi Terrace was a turning point for the Kingdom’s art and luxury scene, with Saudi artists garnering significant attention.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

A post shared by (@visitdiriyah)

Jerry Inzerillo, CEO of Diriyah Company, highlighted the significance of the collaboration between Diriyah and Sotheby’s.

“A few years ago, we decided that Sotheby’s, as a 277-year-old brand, had to match up with Diriyah because the value systems were the same, and you can’t be Sotheby’s without being in Diriyah,” he said in his opening remarks.

The modern and contemporary art section featured works by Saudi artists that collectively realized $1.1 million in sales.

Abdulhalim Radwi’s vibrant 1984 market scene set a personal auction record, selling for $264,000 after fierce bidding online and in the room. (Supplied)

Mohammed Al-Saleem’s untitled work, sourced directly from the artist’s daughter, led the Saudi work on offer.

The piece, blending abstract Arabic calligraphy with Al-Saleem’s vision of Saudi landscapes, sparked intense competition among four bidders before selling for a remarkable $660,000 — triple its pre-sale estimate.

Abdulhalim Radwi’s vibrant 1984 market scene set a personal auction record, selling for $264,000 after fierce bidding online and in the room.

Ahmed Mater’s “Illumination Diptych (Makkiah Tale)” exceeded expectations at $102,000.

Mater, one of Saudi Arabia’s most acclaimed contemporary artists, is internationally celebrated, with works displayed by institutions throughout the Arab world, the UK and the US.

Rene Magritte’s “L’Etat de veille” sold for $1.2 million. (Supplied)

Maha Malluh’s “Magadeer” (from the “Food for Thought” series), inspired by the cultural and spiritual heritage of the Najd area of the Kingdom, sold for $84,000, also surpassing its estimate.

When it came to international works, surrealist Rene Magritte’s “L’Etat de veille” sold for $1.2 million and Fernando Botero’s “Society Woman” made $1 million. Meanwhile, Banksy’s “Subject to Availability” from his series of vandalised oils, sold for $1.2 million.

The luxury segment dazzled collectors with an extraordinary selection of rare items, such as a Patek Philippe Grand Complication watch, a Cartier diamond necklace from the Art Deco era, and a limited-edition Hermes Birkin bag crafted from exotic leather.

Collectors from 45 countries took part in the auction, demonstrating its global appeal, while nearly one-third of the lots were bought by buyers from Saudi Arabia.

Additionally, more than 30 percent of participants were under the age of 40, reflecting the growing interest in art and luxury items among younger generations.

 

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469
Updated 25 min 39 sec ago
Nirmal Narayanan
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Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469

Closing Bell: Saudi Arabia’s main market gains 36 points to 12,469
Updated 25 min 39 sec ago
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Sunday’s trading in green, as it gained 35.56 points or 0.29 percent to close at 12,469.14.

The main index witnessed a total trading turnover of SR4.70 billion ($1.25 billion), with 94 stocks advancing and 134 retreating. 

Saudi Arabia’s parallel market Nomu also gained 28.38 points to close at 31,414.65. The MSCI Tadawul Index edged up by 0.28 percent to 1,550.26. 

Shatirah House Restaurant Co. was the best-performing stock on the main market, with its share price surging by 5.62 percent to SR23.68. 

The share price of Raoom Trading Co. increased by 3.7 percent to SR179.40. Rasan Information Technology Co.’s stock price also rose by 3.36 percent to SR92.30. 

Conversely, LIVA Insurance Co. saw its share price dropping by 3.31 percent to SR17.50. 

The share price of Lamasat Co. which started trading on Nomu on Sunday rose by 29.91 percent to SR7.47. 

On the announcements front, Arabian Co. for Agricultural & Industrial Investments, also known as Entaj said that it has set the price range for its initial public offering in the main market at SR46-SR50.

According to a press statement, the institutional book-building process began on Feb.9 and will run through 3 p.m. Saudi time on Feb.13. Entaj eyes floating 9 million shares on TASI, representing 30 percent of its capital. 

Bank Albilad said that its board of directors recommended a 20 percent capital top-up from SR12 billion to SR15 billion. According to a Tadawul statement, the capital top-up will be done by distributing one bonus share for every five shares held. 

The share price of Bank Albilad rose by 2.76 percent to SR39.05.

Topics: TASI NOMU MSCI

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
Updated 09 February 2025
MOHAMMED AL-KINANI
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Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders

Saudi Ma’aden prices $1.25bn debut sukuk, 9.2 times oversubscribed with $11bn in orders
  • Company said it had completed the sukuk issuance through US dollar-denominated trust certificates
  • Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches
Updated 09 February 2025
MOHAMMED AL-KINANI

JEDDAH: The Saudi Arabian Mining Co., or Ma’aden, priced its $1.25 billion debut sukuk, oversubscribed by 9.2 times, with demand exceeding $11 billion for the five and ten-year tranches, according to an official statement.

In a bourse filing, the company said it had completed the sukuk issuance through US dollar-denominated trust certificates, adding that they will be listed on the London Stock Exchange’s International Securities Market and may be sold under Regulation S and Rule 144A of the amended US Securities Act of 1933.

The Tadawul statement said Ma’aden’s $1.25bn Shariah-compliant bond was issued in two tranches, including a five-year $750m tranche at 5.25 percent and a 10-year $500m tranche at 5.5 percent. The issuance includes 3,750 trust certificates for the five-year tranche and 2,500 for the 10-year, each valued at $200,000. Settlement is set for Feb. 13.

CEO of Ma’aden Bob Wilt said the success of the inaugural international sukuk offering demonstrates investors’ confidence and interest in Ma’aden’s growth, according to a press release.

“Such strong international investor demand, some of the highest seen in Saudi Arabia, is testament to global confidence in our strategic direction and the integral role we play in unlocking Saudi Arabia’s $2.5 trillion of untapped mineral potential,” the CEO said.

Wilt added that as they continue to deliver on their growth strategy, the funding will accelerate their efforts to secure essential minerals that drive the energy transition and long-term development. “We remain committed to building a globally competitive mining sector as the third pillar of Saudi Arabia’s economy.”

Louis Irvine, the chief financial officer of Ma’aden, said the “successful” sukuk issuance reflects the strength of their business, their disciplined financial strategy, and the confidence global investors have in the future of the company.

“We are particularly pleased to welcome new investors whose support will be instrumental as we continue to build mining as the third pillar of the Saudi economy, a key objective of the Kingdom’s Vision 2030. The funds raised will enable us to execute our expansion plans across all our divisions efficiently while maintaining a robust balance sheet as we move forward.”

The issuance aligns with forecasts that global sukuk offerings will total between $190 billion and $200 billion in 2025, driven by growing activity in key markets such as the Kingdom and Indonesia, according to a January analysis by S&P Global.

Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite the marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.

Under Ma’aden’s International Trust Certificate Issuance Program, the move highlights the company’s strong financial position and demonstrates investor confidence in its long-term growth strategy. 

The sukuk issuance proceeds will support the mining giant’s expansion initiatives and further solidify its standing as a leading mining and metals enterprise in the Kingdom and beyond.

The national mining company announced that Citi and HSBC acted as joint global coordinators, joint active bookrunners, and joint lead managers, while Al Rajhi Capital, J.P. Morgan, and SNB Capital served as joint active bookrunners and joint lead managers.

BNP Paribas, BSF Capital, GIB Capital, Natixis, and Standard Chartered Bank acted as joint passive bookrunners and joint lead managers, while HSBC also served as rating advisers.

The firm, rated “Baa1” by Moody’s and “BBB+” by Fitch, said the sukuk are expected to be rated on par with Ma’aden’s ratings.

In January, Ma’aden awarded three contracts worth SR3.45 billion ($921.58 million) for its third phosphate fertilizer plant, according to a filing with Tadawul at that time.

The company named China National Chemical Engineering Co., Sinopec Nanjing Engineering and Construction, and Turkiye-based Tekfen Construction and Installation Co. as the contractors.

Topics: ma'aden Saudi Arabian Mining Co. (Ma’aden) Saudi Arabia Sukuk

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