Al-Barrak Says he Invested in Advanced Technologies, Gulf Integration is Crucial

Kuwaiti businessman Dr. Saad Al-Barrak hopes to contribute to the development of innovative technologies that provide solutions and have a significant impact in addressing future challenges.

His company ILA focuses on advanced technologies such as artificial intelligence, cybersecurity, and blockchain.

Al-Barrak was former chief executive of Kuwait's Zain group and former Deputy Prime Minister, Minister of Oil and Minister of State for Economic and Investment Affairs. He has played a significant role in supporting the sectors he has worked in, particularly in Kuwaiti telecommunications, and has placed the Kuwaiti company Zain within the ranks of global companies after the huge investment he made in Africa.

There are many supporters of Al-Barrak's approach, as well as critics, who believe he works in a "high-risk" manner. But he said: "I always love new challenges ... I try to combine courage, which is half of the success, with wisdom, which is the other half, even though there is a contradiction between the two."

After leaving Zain in 2012, Al-Barrak founded a company specializing in advanced technologies, targeting large institutions and avoiding traditional projects. The company focused on investing in emerging technologies such as artificial intelligence, cybersecurity, and blockchain, with a strategy aimed at creating value and exiting investments within seven to 10 years to reinvest in new opportunities.

Al-Barrak explained that most of his company's operations are centered in the United States. He mentioned signing a contract with Saudi Aramco aimed at supporting digital transformation using artificial intelligence.

He revealed that his company "Beyond Limits," which he founded in collaboration with the California Institute of Technology (Caltech) in 2016, started with a capital of 20 million dollars and is now valued at over 2.5 billion dollars.

He added that the company seeks to expand its collaboration with Aramco and continue innovating in technologies that are game changers across various sectors.

The Zain Experience

About his experience in Zain, he said that he joined MTC in Kuwait in 2002, which rebranded to Zain in 2006–2007. During that time, the company underwent a significant transformation; it expanded its operations from one country to 23 countries worldwide, and revenues increased significantly from about 500 million dollars to over 8 billion dollars by 2009, with total profits growing from 250 million dollars to 3.2 billion dollars.

"The customer base grew from 500,000 in Kuwait to over 74 million worldwide. The rebranding to Zain included operations in about 15 African countries and eight Arab countries,” he added.

Gulf economies

Regarding the economies of the Gulf countries, he said: "The Gulf economies have witnessed significant growth since 2008, primarily driven by oil. However, fluctuations in oil prices due to global politics, wars, and alliances pose challenges. To address this issue, Gulf countries are working on diversifying their income sources."

"Saudi Arabia, Qatar, and the UAE have made significant progress, while Kuwait has started following the same approach, which is diversifying income sources to develop the economy. In less than ten years, the Gulf economies grew from one trillion to three trillion dollars, a 300% increase,” he added.

He said further integration and cooperation between Gulf countries, as envisioned by the Gulf Cooperation Council, is crucial for enhancing their global and regional influence as major powers.

The oil minister

In June 2023, al-Barrak was appointed as Deputy Prime Minister and Minister of Oil.

"The oil market is controlled by countries, not individuals, which makes it highly affected by international politics. This means that oil prices are subject to fluctuations due to global events, such as the Russia-Ukraine war, which impacts all economies,” he told Asharq Al-Awsat.

"While OPEC countries share the commodity, they differ in strategies, visions, and political alliances. The Gulf countries, particularly Saudi Arabia, play a crucial role in OPEC, as they are the economic heart of the organization,” he said.

He pointed out that Saudi Arabia, under the leadership of Minister of Energy Prince Abdulaziz bin Salman has played an effective role in unifying OPEC and OPEC+, demonstrating exceptional leadership and diplomacy.

"Saudi Arabia reduced its production by one million barrels to stabilize the market, convince Russia and other countries to cooperate, and prevent a collapse in oil prices,” he said.

"This unity and leadership from Saudi Arabia greatly benefited the oil market and maintained price stability. The Kingdom continues to lead with excellence under the Custodian of the Two Holy Mosques and the Crown Prince. However, the issue of oil price fluctuations remains complex and requires a fundamental solution to ensure the stability of Gulf economies,” he added.

Ties with Prince Abdulaziz bin Salman

Al-Barrak lauded the work done by Prince Abdulaziz bin Salman. “When I entered the ministry, the first person who contacted me was Prince Abdulaziz bin Salman. He is our mentor, and the cooperation between us is extensive.”

“He is a very good example—very humble, energetic, and active. His knowledge is exceptional in economic and oil matters."

Kuwait

Al-Barrak confirmed that Kuwait has made significant progress during the reign of the late Emir Sheikh Nawaf Al-Ahmad, and these efforts continued during the reign of Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah. He pointed out that the signing of seven major agreements with the private sector to develop infrastructure provides an ambitious future vision.

After South Korea's president and his replacement were both deposed over a failed bid to impose martial law, deepening political turmoil is threatening the country's currency and shaking confidence in its economy.

The won, which plunged Friday to its lowest level against the dollar since 2009, has been in near-constant decline since President Yoon Suk Yeol's attempt to scrap civilian rule in early December.

Business and consumer confidence in Asia's fourth-largest economy have also taken their biggest hit since the start of the Covid-19 pandemic, according to figures released by the Bank of Korea.

Lawmakers impeached Yoon in mid-December on charges of insurrection, and on Friday they impeached his successor, acting president and prime minister Han Duck-soo, arguing that he refused demands to complete Yoon's removal from office and bring him to justice.

That thrust Finance Minister Choi Sang-mok into the additional roles of acting president and prime minister.

Choi has pledged to do all he can to end "this period of turmoil" and resolve the political crisis gripping the country.

- Constitutional question -

At the heart of the stalemate is the Constitutional Court, which will decide whether to uphold parliament's decision to impeach Yoon.

It must do so by a two-thirds majority, however. And because three of the court's nine seats are currently vacant, a unanimous vote is required to confirm the suspended president's removal.

Otherwise, Yoon will be automatically returned to office.

Lawmakers on Thursday nominated three judges to fill the vacant seats, but acting president Han refused to approve them, precipitating his own impeachment.

After an acrimonious day in which lawmakers from Yoon's party erupted in protest, the country's newest acting president sought to project calm.

"Although we are facing unexpected challenges once again, we are confident that our robust and resilient economic system will ensure rapid stabilization," Choi said Friday.

The 61-year-old career civil servant has inherited a 2025 budget -- adopted by the opposition alone -- which is 4.1 trillion won ($2.8 billion) less than the government had hoped for.

"There are already signs the crisis is having an impact on the economy," Gareth Leather of Capital Economics wrote in a note to clients, citing the dip in consumer and business confidence.

"The crisis is unfolding against a backdrop of a struggling economy," he added, with GDP growth expected to be just two percent this year, weighed down by a global slowdown in demand for semiconductors.

"Longer term, political polarization and resulting uncertainty could hold back investment in Korea," Leather wrote, citing the example of Thailand, another ultra-polarized country whose economy has stagnated since a coup in 2014.

- Democratic resilience? -

But other economists noted that the South Korean economy has so far weathered the chaos well.

As early as December 4, the day after Yoon declared martial law following a budget tussle with the opposition, the central bank promised to inject sufficient liquidity to stabilize the markets, and the Kospi Index has lost less than four percent since the start of the crisis.

"Like everyone, I was surprised when Yoon took those crazy measures," Park Sang-in, a professor of economics at Seoul National University, told AFP. "But there was a resilience of democracy."

"We come from being an underdeveloped country to one of the world's most dynamic economies in very few years, and Yoon Suk Yeol is a side effect of the growth," he added.

"Korean society was mature enough to counter his crazy actions."

Al-Barrak Says he Invested in Advanced Technologies, Gulf Integration is Crucial