Gulf Leadership in Artificial Intelligence Spurs Lebanon’s Private Sector

Lebanon ranks 82nd globally in the 2024 Government AI Readiness Index (Lebanon AI Conference)
Lebanon ranks 82nd globally in the 2024 Government AI Readiness Index (Lebanon AI Conference)
TT

Gulf Leadership in Artificial Intelligence Spurs Lebanon’s Private Sector

Lebanon ranks 82nd globally in the 2024 Government AI Readiness Index (Lebanon AI Conference)
Lebanon ranks 82nd globally in the 2024 Government AI Readiness Index (Lebanon AI Conference)

Lebanon is joining the global artificial-intelligence wave, albeit with limited resources and mostly private initiatives, at a time when Gulf states are leading the region in deploying AI to boost national economies.

Expectations point to long-term, exceptional growth in this promising sector, which is attracting sizable investments aimed at modernizing societies and enhancing performance across both productive sectors and public services.

In remarks to Asharq Al-Awsat, AI specialist Hilda Maalouf noted that Gulf governments and private industries are moving in tandem to integrate AI across their systems.

She highlighted the region’s strong readiness, supported by major government-backed investments in advanced technologies and fast-expanding data-center infrastructure, particularly in Saudi Arabia and the UAE.

Lebanon, by contrast, faces deep structural hurdles, especially in the public sector. Still, Maalouf, an Oxford-certified AI expert, told Asharq Al-Awsat that the country retains a dynamic private sector and high-caliber talent striving to stay competitive in IT and AI, despite crippling power outages and a weak internet network that has stalled the rollout of 5G.

According to Omar Hallak, partner and head of the public-sector practice at global data and AI consultancy Artefact, the Gulf’s ambitious national strategies have put it far ahead of other regional countries.

Readiness rankings confirm this: the UAE ranks 13th globally in the 2024 Government AI Readiness Index, followed by Saudi Arabia (22nd) and Qatar (32nd). Lebanon stands at 82nd worldwide.

These disparities, Hallak explained, reflect the widening gap between Gulf economies -now reaping the rewards of sustained tech investment - and countries like Lebanon, whose digital infrastructure and economic crises continue to hinder progress. Despite strong local talent and emerging startups, Lebanon’s AI transition remains slow due to limited government support and weak investment.

Gulf states have forged strategic partnerships with global tech giants such as Microsoft and OpenAI, attracting major cloud-computing providers to build advanced infrastructure.

Their remaining challenge is a shortage in national technical skills, where Lebanon, ironically, excels. Yet Lebanon continues to lose talent to migration while lacking the infrastructure to retain it.

Most Gulf strategies now focus on attracting global experts in data science and AI, in addition to training local citizens. Saudi Arabia aims to train 20,000 specialists by 2030, while leading universities, including King Saud University and the Mohamed bin Zayed University of Artificial Intelligence, are expanding AI programs.

Economically, AI is expected to add $260 billion to Gulf economies by 2030, with Saudi Arabia alone projected to gain $135 billion (12.4% of GDP) and the UAE about $96 billion (13.6%). The World Economic Forum reports that Gulf economic prospects already outpace global averages, driven by technological transformation.

According to analysts, AI adoption will enhance productivity, reduce bureaucracy and corruption, and stimulate public–private partnerships. Gulf states are particularly well-positioned in finance, energy, health care, and education. In Lebanon, AI’s most promising impact lies in service-based sectors such as tourism, transport, finance, education, and health.

Hallak added that sectors rich in data, including public services, finance, energy, manufacturing, and telecommunications, will be the primary drivers of AI adoption across the region, especially in economies where energy and natural resources remain central to growth.



Alphabet's Investment in SpaceX Multiplies 100-Fold to $94 Billion

The letters of the word "Alphabet" on a computer screen featuring a Google search page in an illustration (Reuters)
The letters of the word "Alphabet" on a computer screen featuring a Google search page in an illustration (Reuters)
TT

Alphabet's Investment in SpaceX Multiplies 100-Fold to $94 Billion

The letters of the word "Alphabet" on a computer screen featuring a Google search page in an illustration (Reuters)
The letters of the word "Alphabet" on a computer screen featuring a Google search page in an illustration (Reuters)

Alphabet's early bet on SpaceX has multiplied more than 100-fold, with the Google parent disclosing a stake worth about $94 billion at the end of June compared with the $900 million investment it said it made in Elon Musk's rocket company in 2015.

Alphabet has emerged as by far the largest single institutional holder of SpaceX following its $86 billion IPO in June, according to a Reuters analysis of quarterly filings made public so far.

The filings shed new light on the scale of positions acquired by SpaceX's backers as the company transitioned from a closely held startup to a publicly traded giant. Together with separate public disclosures on early investments, including Alphabet's, they also highlight how dramatically the value of some early investments in SpaceX has grown.

Because the 13F filing data is compiled once ⁠per quarter and disclosed ⁠within six weeks of quarter-end, the information is dated and will not capture any buying or selling done by these large investors since June 30.

There are other limitations as well, given the vast universe of SpaceX investments and the evolving schedule of when they stand to become eligible to be sold in public markets.

"It's very, very difficult to tease out which of these institutions were holding pre-IPO shares," said Steve Sosnick, market strategist at Interactive Brokers.

Alphabet is an exception because the company publicly disclosed that it invested $900 million in SpaceX ⁠in 2015, providing a rare benchmark against which to compare the value of its current holding.

Alphabet did not immediately respond to a request for comment. Sosnick added that the 13F filings did not reveal investors' lockup status or intentions with respect to realizing profits on pre-IPO positions.

FILE - The SpaceX logo is displayed on a building, May 26, 2020, at the Kennedy Space Center in Cape Canaveral, Fla. (AP Photo/David J. Phillip, File)

Alphabet held 551.2 million SpaceX shares at the end of the second quarter, according to the firm's filing, worth about $94.2 billion at SpaceX's June 30 share price of $170.86.

At Thursday's price, Alphabet's disclosed position would be worth about $77.9 billion, still about 86.5 times the size of Google's original investment. Fidelity Investments was the second-largest reported institutional holder, with 302.6 million SpaceX shares, followed by Gigafund Management with 171.8 million, Baillie Gifford with 51.4 million and BlackRock with 51.0 million.

Alphabet, Fidelity, Gigafund Management, Baillie Gifford and BlackRock, the five largest reported holders in the data, accounted for nearly three quarters ⁠of reported SpaceX ⁠shares, highlighting the concentration of reported institutional ownership among a handful of investors.

Separately, SpaceX said in a regulatory filing that Musk owned a 48.4% stake in the company. SpaceX went public on June 12 at $135 a share. Its shares have since retreated from their end-June level. SpaceX closed at $141.29 on Thursday, 4.7% above its IPO price but 17.3% below the June 30 close.

Sosnick told Reuters that SpaceX remains one of the most actively traded stocks among customers at Interactive Brokers, receiving a "fresh jolt of buying last week when market fears about what would happen when the first lockup expiry arrived proved to be unfounded."

Retail owners of SpaceX shares, who do not have to submit their holdings to the SEC, turned into net sellers of the stock on Friday for the first time since the IPO, according to data from Vanda Research.

The research firm, which tracks the activity of self-directed individual investors, calculated that this group sold a net $4.5 million on that day. SpaceX shares were down 3% on Thursday but have risen 30% since August 5.


Iraqi Daily Oil Exports in August Highest since Start of War

A view across Shatt al-Arab of the 'Bin Omar' oil field north of Basra, Iraq (Reuters)
A view across Shatt al-Arab of the 'Bin Omar' oil field north of Basra, Iraq (Reuters)
TT

Iraqi Daily Oil Exports in August Highest since Start of War

A view across Shatt al-Arab of the 'Bin Omar' oil field north of Basra, Iraq (Reuters)
A view across Shatt al-Arab of the 'Bin Omar' oil field north of Basra, Iraq (Reuters)

Iraq's average daily oil exports since the beginning of August are the highest since the outbreak of the Middle East war between Iran and the United States, which has choked off the Strait of Hormuz, the oil ministry said Friday.

Iraqi Oil Minister Bassem Mohammed Khudair told a press conference that "exports since the beginning of the month have reached a rate of two million barrels" per day, for a total of around 26 million barrels, saying the daily rate was achieved "for the first time since the crisis began".


Fitch Keeps US at 'AA+', Cites Economic Resilience amid Fiscal Risks

The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
TT

Fitch Keeps US at 'AA+', Cites Economic Resilience amid Fiscal Risks

The American flag flies in the National Mall near the Capitol building in Washington (Reuters)
The American flag flies in the National Mall near the Capitol building in Washington (Reuters)

Fitch on Thursday affirmed the sovereign credit rating for the United States at "AA+" with a stable outlook, citing its large economy, high per-capita income and the US dollar's status as the world's leading reserve currency.

The US economy remained resilient despite higher tariffs, government spending cuts, tighter border controls and heightened policy uncertainty, reflecting its ability to absorb shocks and economic flexibility, Reuters quoted the credit ratings agency ⁠as saying.

Fitch, however, estimated ⁠economic growth of 1.9% in 2026-2027, lower than the 2.8% in 2025, and noted weakening labor demand and a significant slowdown in job creation this year.

Inflation remains a concern, with the agency expecting it to average 3.4% in ⁠2026, above the Federal Reserve's 2% target. Tariffs have added to core goods inflation, though their impact has been less severe than expected.

Fitch expects the general government deficit to widen to 7.4% of GDP in 2026 and remain at that level in 2027, the highest among "AA"-rated sovereigns.

Higher military and interest costs, along with rising Medicare and Social Security spending, would limit ⁠efforts ⁠to reduce the deficit.

Peer S&P Global also maintained its "AA+" rating on the US in June, citing the economy's resilience and strong institutions.

Fitch had downgraded the US sovereign rating by one notch from the top-tier triple-A rating in 2023, pointing to expected fiscal deterioration and repeated down-to-the-wire debt ceiling negotiations.

Moody's downgraded the US by one notch last year, citing rising debt levels and stripping the country of its last remaining triple-A rating.