عربي English Türkçe اردو فارسى
Logo
Latest News
Business

AI Challenges Take Center Stage at FII Summit in Miami

Public Investment Fund (PIF) Governor and Chairman of FII Institute Yasir al-Rumayyan at FII. (Future Investment Initiative)
Public Investment Fund (PIF) Governor and Chairman of FII Institute Yasir al-Rumayyan at FII. (Future Investment Initiative)
TT
TT

AI Challenges Take Center Stage at FII Summit in Miami

Public Investment Fund (PIF) Governor and Chairman of FII Institute Yasir al-Rumayyan at FII. (Future Investment Initiative)
Public Investment Fund (PIF) Governor and Chairman of FII Institute Yasir al-Rumayyan at FII. (Future Investment Initiative)

Artificial intelligence was at the heart of discussions at the Future Investing Initiative (FII) in Miami, where participants discussed its challenges amid investor enthusiasm for the technology.

It is the second time the FII "Priority" summit has been held in Miami, US, under "On the Edge of a New Frontier."

About 1,000 attendees at the summit discussed technologies, promoting innovation to invest and improve civil societies, harmoniously integrating technical developments in advanced AI, robotics, healthcare, finance, and sustainability.

Central to the summit's goals is to connect the two Americas to global markets and address critical challenges for a prosperous future in light of Miami's dynamic entrepreneurship and vibrant corporate scene.

PIF Governor

Saudi Public Investment Fund (PIF) Governor and Chairman of FII Institute Yasir al-Rumayyan stressed during a panel session at the summit opening on Thursday that the Kingdom is well positioned to be a significant global hub for AI and related industries.

Rumayyan explained that it has many competitive advantages to achieve this goal, including its leadership in clean energy resources, political determination, funding capabilities, and human competencies.

He also addressed PIF's strategy, saying that more than 70% of its investments are local and directed towards the Kingdom's economy, while the public share of international investments has declined to less than 25%.

Rumayyan explained that PIF investments mainly target new sectors under its goal to make a long-term impact by being the economic driver of the transformation journey within Vision 2030, which is distinguished from other international strategic plans by its success in achieving many of its goals before their set timelines.

"The fund invests between $40 billion to $50 billion annually, which will continue until 2025. We look at our investments in the Kingdom and their impact on the gross domestic product, job creation, and local content increase."

"We are looking forward to increasing local revenues generated from investments as per the framework to create a sustainable impact on the Saudi economy and realize the targets of Vision 2030," he said.

On the fund's international investments, Rumyyan said their value continues to rise in terms of volume despite a decline in their percentage compared to local investments.

He pointed out that investments in the US market amount to 40% of the fund's total international investments in the form of investments or purchases, which amounted to more than $100 billion between 2017 and the end of 2023.

Meanwhile, Nvidia's total revenue rose 265% from a year ago, based on solid sales for server AI chips, amounting to $22.1 billion in the fourth quarter. The company is anticipating stronger sales thanks to growing spending on artificial intelligence.

Blackstone

Stephen Schwarzman, co-founder and CEO of Blackstone and an early supporter of AI, was one of several executives at the summit.

He highlighted the ethical implications of artificial technology, warning that countries and leaders need to come together on AI to prevent its misuse.

Schwarzman said he wondered about the "astonishing power of AI" and its effect on the human condition.

He stressed that AI will likely impact society and humanity, especially healthcare.

Accenture

Accenture CEO Julie Sweet said that AI has the potential to bridge North-South divides, exploring the far-reaching impact of AI on addressing global challenges in a panel discussion titled "FII Priority Compass: What matters most to citizens?"

She said: "The question is how much AI can help the Global South and the countries that need help through precision farming, through telemedicine and better healthcare."

Sweet highlighted Saudi Arabia's proactive stance in utilizing artificial intelligence to achieve societal progress and stressed the importance of global cooperation in harnessing the potential of artificial intelligence to address complex issues.

"One of the things that's been great to see is Saudi Arabia taking the lead in many places to think through how AI can help and how can they be a leader," she said, adding, "I think it's really important to always stay focused on what are the opportunities with AI to solve the world's problems."

She also highlighted the efforts of organizations such as the United Nations and stressed the urgent need to understand how to harness technology to avoid widening disparities.

"Regulation needs to be the outcome of a very strong public-private partnership because most governments in the world don't have the access or the talent inside to know it," Sweet said, adding that there have been a few successful examples of governments balancing innovation and safety.

She added: "That's one of the most important things governments must do, particularly because the technology is changing rapidly. And I think the good news is that everyone has agreed that some regulation is needed."

Regarding the AI-related risks in the upcoming US elections, Sweet warned against relying solely on government regulation.

She called for increased cooperation between private entities.

The second and final day of the summit discussed topics related to finance, venture capital, IPO markets, innovation, and others.

Most Viewed

 
 
Business

Many in Egypt Struggle as the Costs of a Distant War Drive up Prices in Local Markets

Cars are seen on a road at Nasr City, a suburb of Cairo, Egypt May 3, 2021. REUTERS/Mohamed Abd El Ghany
Cars are seen on a road at Nasr City, a suburb of Cairo, Egypt May 3, 2021. REUTERS/Mohamed Abd El Ghany
TT
TT

Many in Egypt Struggle as the Costs of a Distant War Drive up Prices in Local Markets

Cars are seen on a road at Nasr City, a suburb of Cairo, Egypt May 3, 2021. REUTERS/Mohamed Abd El Ghany
Cars are seen on a road at Nasr City, a suburb of Cairo, Egypt May 3, 2021. REUTERS/Mohamed Abd El Ghany

Sayyed Ragheb was already struggling to keep his family afloat, earning less than $100 a month. Now he fears it will get even worse after Egypt hiked fuel prices because of the Iran war.

The father of four school-age children works day-to-day in cafes and sometimes in construction. With prices of meat and produce jumping just the past week, he worries about meeting his family’s basic needs, The AP news reported.

“This means a price increase for everything,” said Ragheb, as he served hot drinks at a cafe on a recent evening in Cairo. “This is catastrophic for someone like me.”

Egypt is one of the few countries in the Middle East not directly affected by the war, now in its third week with no sign of abating. It’s not part of the US-Israeli campaign against Iran, and it hasn’t been targeted by Iranian missile and drone fire, like Arab Gulf nations, or by Israeli bombardment, like Lebanon.

But the nation of over 108 million people is feeling the conflict’s repercussions. Soaring energy prices forced the government to implement a steep hike in the prices of subsidized fuel and cooking gas.

That is having a domino effect on the prices of other goods and services in Egypt's struggling economy. Moreover, it comes during the Muslim holy month of Ramadan, when families traditionally hold large dinner gatherings, and ahead of the holiday of Eid al-Fitr, a major shopping season when people buy new clothes, especially for children.

Egypt is vulnerable to fuel price hikes World energy prices have surged since the US and Israel launched the war on Feb. 28. Iran retaliated by attacking oil and gas infrastructure across the Persian Gulf and effectively blocking traffic through the Strait of Hormuz, where a fifth of the world's traded oil passes.

Brent crude, the international benchmark, soared from less than $70 a barrel on Feb. 27 to a peak of nearly $120 early March 9. It was hovering around $104 on Wednesday.

The jump is particularly painful for Egypt because the government dedicates a large part of its already strained budget to subsidizing gasoline, fuel and electricity.

Energy prices aren’t its only vulnerability.

Traffic through the Suez Canal, a major source of government income, had started to recover after two years of attacks on Red Sea shipping by Yemen's Houthis. Now some shipping companies are again routing traffic away from the Middle East because of the latest turmoil, and the government says it expects more losses.

Egypt, home to the ancient pyramids, also earns considerable foreign income from tourism. But arrivals are expected to plunge as travelers steer clear of the region.

If the conflict is prolonged and continues to drive up prices and reduce government revenues, the short-term economic pain could become a broader political and economic crisis, said Alexandra Blackman, an expert in Mideast politics at Cornell University.

“That will be more challenging for the regime to manage and control,” she said.

Egypt's president says the price hikes were ‘inevitable’ On March 10, the government announced a 15% hike in the price of gasoline, a 22% hike in cooking gas and a 17% hike in diesel, widely used in commercial and public transport.

President Abdel-Fattah el-Sissi acknowledged the pressure on people but said the increases are “inevitable” and “the least expensive” option to protect the economy.

“The requirements of the reality sometimes necessitate taking difficult measures ... to avert harsher options and more serious consequences,” he said over the weekend at an Iftar event, breaking the daily sunrise-to-sunset Ramadan fast.

He said Egypt’s consumption of oil products costs $20 billion annually, including fuel used to operate power plants.

The government imports 28% of its gasoline needs and 45% of its diesel needs, which puts pressure on the budget, said Petroleum Minister Karim Badawy.

The government announced a series of measures aimed at mitigating the impact, including reducing official overseas trips and tightening fuel consumption across the public sector. It also announced salary increases starting in July.

Egypt’s poor and middle class have already seen their purchasing power shrink over the past decade under government austerity measures. The measures included the slashing of subsidies and devaluation of Egypt’s currency as part of an ambitious reform program in 2016.

Inflation jumped from 10% in January to 11.5% in February of this year, according to official figures. The price increases are rippling across the economy in a country where a third of the population is below the poverty line, according to government statistics.

Since the new fuel prices took effect, the cost of meat has jumped 25% and fruit and vegetables rose 15-30%, according to merchants at three markets in Cairo.

Hussein Rashad, a grocer in a poorer district, said customers have become more selective, and most have reduced the amount of vegetables they buy. Some have stopped buying fruit altogether, he said.

“Many things have become out of their reach,” he said.

Ragheb, the cafe worker, said his family has tightened its budget, including resorting to the cheapest food staples. He won't be buying new clothes for his children for the upcoming Eid.

“One has no other option,” he said.

Business

Gold Falls 2% as Inflation Fears Bolster Hawkish Fed Bets

Gold bars after being inspected and polished at a refinery in Sydney (AFP)
Gold bars after being inspected and polished at a refinery in Sydney (AFP)
TT
TT

Gold Falls 2% as Inflation Fears Bolster Hawkish Fed Bets

Gold bars after being inspected and polished at a refinery in Sydney (AFP)
Gold bars after being inspected and polished at a refinery in Sydney (AFP)

Gold prices fell to a one-month low on Wednesday as investors weighed the risk of a more hawkish US Federal Reserve policy stance, with high oil prices fuelling concerns about inflation.

Spot gold fell 2% to $4,903.19 per ounce as of 1216 GMT, its lowest level since February 18. US gold futures for April delivery also dropped 2% to $4,907.40, according to Reuters.

"Investors are worried about rates staying 'higher-for-longer' due to elevated energy prices ... the longer the Iran conflict goes on, the more likely that scenario," said Jamie Dutta, market analyst at Nemo.money.

While gold is viewed as a hedge against inflation and uncertainty, high interest rates curb its appeal by raising the cost of holding bullion and boosting returns on yield-bearing assets.
The Middle East conflict, in its third week, saw Iran target Tel Aviv with missiles in retaliation for Israel's assassination of its security chief, Ali Larijani, Iranian state television reported on Wednesday.

Benchmark Brent futures prices have been above $100 per barrel for the past four sessions.

Meanwhile, the Fed is widely expected to hold rates steady later in the day.

Investors will parse Fed Chair Jerome Powell's remarks to assess the central bank's policy view for the rest of 2026, with futures markets seeing only one quarter-percentage-point rate cut this year, in September, and another cut in late 2027.

"Long-term drivers like central bank buying, stagflation risks and diversification demand remain. That should mean higher (gold) prices by end of 2026," Dutta said.

Spot silver fell 1.2% to $78.29 per ounce, spot platinum was down 2.9% at $2,063.69, and palladium lost 2.6% to $1,560.50.

Business

UAE Bank Stocks Jump after Central Bank Launches Resilience Package

A man on a boat with an UAE flag near Dubai Creek, in Dubai, United Arab Emirates, March 5, 2026. Picture taken with a mobile phone. REUTERS/Rula Rouhana
A man on a boat with an UAE flag near Dubai Creek, in Dubai, United Arab Emirates, March 5, 2026. Picture taken with a mobile phone. REUTERS/Rula Rouhana
TT
TT

UAE Bank Stocks Jump after Central Bank Launches Resilience Package

A man on a boat with an UAE flag near Dubai Creek, in Dubai, United Arab Emirates, March 5, 2026. Picture taken with a mobile phone. REUTERS/Rula Rouhana
A man on a boat with an UAE flag near Dubai Creek, in Dubai, United Arab Emirates, March 5, 2026. Picture taken with a mobile phone. REUTERS/Rula Rouhana

The United Arab Emirates central bank (CBUAE) on Tuesday unveiled a package to help bolster banks' liquidity, marking its most significant policy move since the pandemic, as Gulf economies move to weather the impact of the Iran crisis.

UAE banks, whose stocks have seen double-digit losses since the war began last month, jumped on Wednesday morning, with Dubai's Emirates NBD and Abu Dhabi Islamic Bank gaining over 6%, and Abu Dhabi Commercial Bank up over 5%.

First Abu Dhabi Bank was losing around 1% by 0825 GMT.

The war, now in its third week and without tan end in sight, has thrown global energy markets and transport into chaos as the conflict has spread.

The UAE's financial system "has demonstrated resilience during the current extraordinary circumstances affecting the global and regional markets without any material impact on the banking sector's health and payment systems," the CBUAE board said in a statement.

Under the package approved on Tuesday, banks will gain enhanced access to ⁠reserve balances of up to 30% of the cash reserve requirement and term liquidity facilities in both UAE dirhams and US dollars, the CBUAE said.

Other measures include stopgap relief in liquidity and stable funding ratios as well as the temporary release of the countercyclical capital buffer (CCyB) and capital conservation buffer (CCB), it said.

While the measures introduced on Tuesday are larger than a similar package introduced to withstand the impact of the COVID-19 pandemic, "asset quality pressures could still emerge should the conflict persist and its economic effects deepen," the bank said.

Gulf banks could face domestic deposit outflows of $307 billion if the Middle East conflict deepens, S&P Global Ratings said in a report on Monday. The ratings agency said, however, that it had seen no evidence of major outflows of foreign or local funding from banks.

The CBUAE said in Tuesday's statement that the overall stock of liquidity held by UAE banks at the regulator, combined with their net eligible assets for central bank operations, had reached close to $250 billion, of which banks' reserve balances exceed $109 billion.