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IBM President Highlights Saudi Arabia’s Rapid Rise in AI

IBM Chairman and CEO Arvind Krishna. (Getty Images)
IBM Chairman and CEO Arvind Krishna. (Getty Images)
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IBM President Highlights Saudi Arabia’s Rapid Rise in AI

IBM Chairman and CEO Arvind Krishna. (Getty Images)
IBM Chairman and CEO Arvind Krishna. (Getty Images)

IBM Chairman and CEO Arvind Krishna said Saudi Arabia was rapidly emerging as a global leader in the field of artificial intelligence.

In an exclusive interview with Asharq Al-Awsat, Krishna noted that his company, a global leader in the field of hybrid cloud, artificial intelligence, and consulting services, announced plans to invest more than $200 million in talent and infrastructure by establishing a new software center in Riyadh, in support for Saudi Vision 2030, which aims to transform the Kingdom into a leading global technology hub.

Krishna pointed out the strategic importance of artificial intelligence, explaining that its economic impact in the Middle East is estimated at about $320 billion by 2030. He stressed that Saudi Arabia would reap great benefits, with gains reaching $135.2 billion, which represents more than 42 percent of the size of the economy related to new technology.

He also underlined the “regional benefits” of establishing the new software center in Riyadh, saying that Saudi Arabia “is rapidly emerging as a world leader in the field of artificial intelligence, and the new IBM center represents a major achievement.”

The center will work to drive innovation in the fields of data, AI, and sustainability programs, with the aim of accelerating skills development and creating high-quality jobs for young IT professionals in Saudi Arabia. The center’s focus on digital innovation, product development, management and design will stimulate the creation of globally exportable solutions, enriching the technological infrastructure in the Kingdom.

IBM's recent projects in Saudi Arabia also include expanded cooperation with Riyadh Air and Salam Telecom. Krishna promised that the cooperation with Riyadh Air aims to “revolutionize travel experiences” and support the company’s inaugural flight in 2025 with advanced solutions.

The IBM president pointed out that Watsonx, the company’s latest data and AI platform, is designed to improve productivity, simplify workflow, and automate tasks across industries. He noted that introducing Arabic language models into the new platform represented an important step towards enhancing the use of large Arabic language models in various sectors.

According to Krishna, the rapid technological development has decreased the lifespan of skills acquired today by half within seven years, which highlights the importance of continuous learning.

For this reason, IBM’s work in Saudi Arabia includes partnerships aimed at raising the skills of up to 100,000 Saudis in the digital sector, he stated.

He added that his company, through its cooperation with educational and governmental bodies, was able to provide training courses and research accelerators, to support the Kingdom’s goals of becoming a global digital leader.

Krishna said he was confident that IBM’s significant investment in the new software center in Riyadh not only reflects a long-term commitment to technological advancement in the Kingdom, but also paves the way for pioneering innovations that could shape the future of the global technology landscape.

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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
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IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."