Saudi Aramco Urges World Unity around New Energy Transformation Plan

President and CEO of Saudi Aramco, Amin bin Hassan Nasser (Reuters)
President and CEO of Saudi Aramco, Amin bin Hassan Nasser (Reuters)
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Saudi Aramco Urges World Unity around New Energy Transformation Plan

President and CEO of Saudi Aramco, Amin bin Hassan Nasser (Reuters)
President and CEO of Saudi Aramco, Amin bin Hassan Nasser (Reuters)

President and CEO of Saudi Aramco, Amin bin Hassan Nasser, emphasized the need for a more reliable energy transition plan, in a keynote speech on Tuesday at the Schlumberger Digital Forum.

In his speech, Nasser underlined the importance of achieving a new global consensus of views and positions, outlining three strategic axes: “Recognition by policy makers and other stakeholders that supplies of ample and affordable conventional energy are still required over the long term; further reductions in the carbon footprint of conventional energy, and greater efficiency of energy use, with technology enabling both; and new, lower carbon energy, steadily complementing proven conventional sources.”

Highlighting the consequences of not having a reliable and balanced plan for energy transformation, he said: “The energy transition plan has been undermined by unrealistic scenarios and flawed assumptions because they have been mistakenly perceived as facts. For example, one scenario led many to assume that major oil use sectors would switch to alternatives almost overnight, and therefore oil demand would never return to pre-Covid levels.”

He continued: “Perhaps most damaging of all was the idea that contingency planning could be safely ignored… Because when you shame oil and gas investors, dismantle oil-and coal-fired power plants, fail to diversify energy supplies (especially gas), oppose LNG receiving terminals, and reject nuclear power, your transition plan had better be right.”

On the importance of increasing investment in the oil and gas sector, the CEO of Saudi Aramco expressed concern, as oil and gas investments have declined significantly during the past ten years.

“This situation is not being helped by overly short-term demand factors dominating the debate. Even with strong economic headwinds, global oil demand is still fairly healthy today. But when the global economy recovers, we can expect demand to rebound further, eliminating the little spare oil production capacity out there. And by the time the world wakes up to these blind spots, it may be too late to change course,” Nasser explained.

He emphasized the need for the world to unite behind a new and credible energy transformation plan, saying: “As the pain of the energy crisis sadly intensifies, people around the world are desperate for help. In my view, the best help that policy makers and every stakeholder can offer is to unite the world around a much more credible new transition plan, driving progress on the three strategic pillars I have outlined this morning.”

He concluded: “The new plan will not be perfect. In life, nothing ever is. But that is how we deliver a more secure and more sustainable energy future, with our industry still at its heart. That is how we can ease people’s pain. And that is how spring will come again.”



Government Incentives Increase Saudi Arabia’s Foreign Investment Flows

The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
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Government Incentives Increase Saudi Arabia’s Foreign Investment Flows

The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)
The Saudi market constitutes an attractive investment environment for international companies. (Photo: Reuters)

Figures of net foreign direct investment (FDI) flows published in the fourth quarter of 2023, which amounted to about 13 billion riyals ($3.4 billion), indicate that the Saudi government succeeded in creating a flexible investment environment in accordance with global standards.

Foreign direct investment flows recorded very high levels in the fourth quarter, according to the figures of the General Authority for Statistics (GASTAT). Those amounted to around SAR 19 billion ($5 billion), with an increase of 16.6 percent compared to the third quarter of 2023.

The Saudi government has recently presented a package of new tax incentives for a period of 30 years to support the program to attract the regional headquarters of international companies, including exemption from income tax.

Economic analyst at King Faisal University Dr. Mohammad bin Dulaim Al-Qahtani told Asharq Al-Awsat that the flow of foreign investment into the country was expected to exceed SAR50 billion in the fourth quarter of 2026, with the completion of the infrastructure for a number of giant projects, including NEOM, the Red Sea tourism projects, and others.

He said the Kingdom will witness a major development as the Saudi economy has multiple resources, including oil, gas, minerals, gold, cultural and religious tourism, as well as sports and non-oil industries.

Dr. Salem Bajajah, an academic at King Abdulaziz University, said that the Saudi market is attractive for investment in several promising sectors, including tourism, entertainment, sports, and nutrition.

He attributed the increase in foreign direct investment flows in the Kingdom to companies making several lucrative returns, in addition to the government incentives that turn the investment environment attractive to international companies.


Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
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Unemployment Among Saudis is Close to Vision 2030 Target

The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)
The fourth quarter of 2023 witnessed an increase in the number of female workers. (Asharq Al-Awsat)

The unemployment rate among Saudis approached the target of 7 percent, which was set in Vision 2030. At the end of the fourth quarter of 2023, unemployment declined to 7.7 percent, supported by a greater female participation in the labor market.

Human resources experts link this positive development to corrective strategies for the labor market and nationalization programs, as well as specialized programs that target the private sector.

Crown Prince Mohammed bin Salman had previously revealed that Vision 2030 sought to achieve an unemployment target of 4 to 7 percent, stressing that the government would attain this goal before the specified date.

According to data from the General Authority for Statistics (GASTAT) on Thursday, the unemployment rate among Saudis decreased in the fourth quarter of 2023 to the lowest level, due to the rise in the number of female workers and growth rates recorded by non-oil activities in the Kingdom, which contributed to providing more job opportunities.

Unemployment among Saudi women decreased to 13.7 percent compared to 16.3 percent during the third quarter, while the rate among Saudi males remained stable at 4.6 percent.

Experts told Asharq Al-Awsat that the strategies of the current human resources system were able to stimulate the private sector to accelerate the rate of employment of Saudis, in addition to the training, empowerment and guidance support programs of the Human Resources Development Fund, which in turn increased the employment process in the labor market.

Dr. Abdullah Al-Jassar, member of the Saudi Economic Society and the Energy Economics Society, explained to Asharq Al-Awsat that the decline in the unemployment rate among Saudis to 7.7 percent was achieved through support programs launched by the Ministry of Human Resources and Social Development, pointing as well to the growth of job opportunities in the private sector and efforts to stimulate investments and create an attractive economic environment.

Human resources expert Ali Al Eid noted that the entry of a large number of local and international companies into the Saudi labor market, in addition to the launch of a number of major government projects, contributed to raising employment rates.


S&P Raises Türkiye’s 2024 Growth Forecast to 3%

In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
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S&P Raises Türkiye’s 2024 Growth Forecast to 3%

In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5% (Reuters)

International credit rating agency Standard & Poor’s (S&P) increased its 2024 total growth forecast for Türkiye to 3%.
Also, the credit rating agency Fitch announced Tuesday it upgraded Türkiye Wealth Fund's (TWF) rating from “B” to “B+.”
In its second quarter economic outlook reports for the US and emerging markets, S&P Global said the growth forecast for Türkiye was increased from 2.4% to 3% for 2024 and from 2.7% to 3% for 2025. On the other hand, the growth expectation for the Turkish economy was reduced from 3% to 2.8% for 2026.
In 2023, Türkiye’s economy grew by a larger-than-expected 4.5%, exceeding the government’s forecast of 4.4%.
The economy expanded by 4.0% in the final quarter of the year, maintaining growth performance uninterruptedly for 14 quarters.
National income per capita increased to $13.110.
Meanwhile, Fitch Ratings has upgraded Turkiye Wealth Fund's (TWF) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'B+' from 'B' with a positive outlook.
It said the upgrade of the IDRs and the Positive Outlook follow the upgrade of Türkiye's sovereign ratings dated 8 March 2024.
On March 8, Fitch Ratings upgraded the country’s rating to “B+” from “B” and changed its outlook from “stable” to “positive.”
This is because Türkiye has tightened its monetary policy since June 2023.
Senior director in Fitch Ratings’ sovereigns group and primary Türkiye analyst Erich Arispe Morales said Fitch Ratings has “greater confidence” that the country’s current economic policy pivot is “more durable.”
“Regarding the effectiveness of the policy shift, improving reserve levels, reduced contingent liability in terms of effects of protected deposits without increasing dollarization, reduced current account deficit, and easing inflation expectations, these developments warrant the rating that we took,” Morales said.
“Also, with the caveat that we've seen an improvement in the international reserve levels, and we know that if the policy settings are sustained as our base case assumes we will be seeing that reserve coverage will improve to 4.5 months in 2025,” he said. “That would bring Türkiye’s reserve coverage above what is expected for countries with a similar rating which is the B rating category,” the analyst added.
On March 13, Fitch Ratings raised its forecast for the growth of the Turkish economy from 2.5 to 2.8 percent in 2024.
According to the World Economic Outlook report, entitled "Growth expectations improve but inflation continues", the Turkish economy grew in the last quarter of 2023, above expectations, and the increase in private consumption was effective in that.
Fitch expects economic momentum to continue in the first quarter of this year. The Turkish economy is expected to grow by 3.1 percent in 2025.

 


1,200 Brands Ready for Franchising in Saudi Arabia

Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
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1,200 Brands Ready for Franchising in Saudi Arabia

Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)
Food, beverages, and retail are among the most prevalent industries in the Saudi franchising system (Asharq Al-Awsat)

More than 10,000 business opportunities are available in Saudi Arabia’s franchising market, with over 1,200 brands ready for franchising.
Saudi Arabia is becoming a hotspot for investment in the Middle East due to its favorable market conditions and supportive commercial environment.
The Kingdom has been welcoming hundreds of global brands in recent years, offering franchise opportunities across various regions.
According to a report by the Small and Medium Enterprises General Authority (Monshaat), there are over 1,000 franchising brands in the Kingdom, with 380 being local and more than 600 foreign brands.
The Saudi franchising market mainly focuses on sectors like food and beverage, retail, and services.
Saudi Arabia holds a significant share of the franchising market in the Middle East, making it attractive for global brands, especially after the launch of Vision 2030, which has spurred major investment projects in the country.
The franchising industry allows big international companies to enter local markets, providing opportunities for small investors and entrepreneurs to grow their businesses.
In 2020, the executive regulations of the franchise system were implemented to facilitate the entry of global companies into the Saudi market and to encourage investment opportunities for Saudi entrepreneurs.
The Saudi franchising law aims to ensure transparent relationships between franchisors and franchisees, offering necessary protection throughout the process.
The report from Monshaat highlighted that the Franchising Center, linked to the authority, has been assisting various Saudi brands. Their services include checking if brands are ready for franchising, licensing brokers, offering mediation services, and appointing franchise managers.
The goal of the Franchising Center is to boost the system and empower brands and stakeholders. They aim to make Saudi Arabia a regional and global hub for both local and international brands.
Through a bold program, the Franchising Center aims to help SMEs expand through franchising. This will increase the number of active brands in Saudi Arabia by offering guidance from industry experts.
Their program aims to prepare national brands, set up operational systems, and give new Saudi entrepreneurs and SMEs the chance to grow.
These franchising programs are expected to bring good returns in the short, medium, and long term, supporting fast-growing industries.
The franchising market is predicted to create job opportunities in Saudi Arabia in the coming years. Despite being relatively new in the Kingdom, it has quickly grown and developed.


EBRD to Provide 30 Mln Euros for Türkiye's Earthquake Regions 

A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
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EBRD to Provide 30 Mln Euros for Türkiye's Earthquake Regions 

A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)
A new building for earthquake survivors is under construction in Diyarbakir, Türkiye August 26, 2023. (Reuters)

The European Bank for Reconstruction and Development (EBRD) will provide 30 million euros ($32.50 million) in long-term financing to Türkiye's Ronesans Gayrimenkul Yatirim to support regions affected by last year's earthquakes.

The loan will be provided to the subsidiary of Türkiye's Ronesans Holding that deals with commercial real estate development and investment, the company said in a statement.

It said the funds will be used to support capex of two shopping centers in the southeastern provinces of Kahramanmaras and Sanlıurfa that were struck by the February 2023 earthquakes. The loan will be backed by a guarantee from the European Union.

The financing will also help to support businesses and livelihoods in the region which faces labor shortages following migration from the area after the disaster, the statement said.

On Tuesday, the Turkish treasury and the EBRD signed a memorandum of understanding for 500 million euro financing to support efforts to revive the earthquake region, Anadolu news agency reported.


New Saudi Initiative Supports Exporters, Stimulates Economic Sustainability in South

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
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New Saudi Initiative Supports Exporters, Stimulates Economic Sustainability in South

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)
The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops. (Photo: SAL)

In line with the ongoing efforts towards strengthening and sustaining the local economy and expanding trade exchange in the region, the Cluster 2 Company announced a new initiative aimed at supporting farmers and exporters in Jazan, south of the Kingdom.

Jazan is considered one of the most important agricultural regions in the Kingdom, thanks to its arable soil and groundwater. The city is also home to basic and transformational industries, and an ideal center for the growth of business and manufacturing industries.

The Cluster 2 Company, in cooperation with the Saudi SAL Logistics Services Company and Saudia Cargo, announced on Tuesday the launch of the initiative that aims to encourage and increase Saudi Arabia’s exports of agricultural crops, and to support farmers and exporters in the region, specifically during the current 2024 mango season.

In remarks to Asharq Al-Awsat, Logistics specialist Nashmi Al-Harbi pointed to the importance of this initiative, in terms of reducing export fees, which in turn will help increase the export volume and expand the access of national products to local and international markets.

He added that Jazan City for Basic and Transformative Industries represents a qualitative leap in terms of economic development in the southern region.

Al-Harbi noted that the new initiative was consistent with the objectives of the National Strategy for Transport and Logistics Services, both in improving goods and shipping services, as well as advancing the Kingdom’s ranking on logistics services performance indicators and ensuring its leadership regionally.

Jazan is known for seven important sectors, including agriculture in greenhouses, sustainable evergreen and deciduous fruit trees, the manufacture of agricultural products and their accessories, as well as crops, services, agricultural equipment, natural plants, flowers and roses, and vertical agriculture.

As the Jazan region is a major home to the world’s most famous Arabica coffee, the Public Investment Fund (PIF) announced in May 2022 the launch of the Saudi Coffee Company, with the aim of supporting the local coffee and elevating it to global ranks.

The Cluster 2 Company manages and operates 22 international, tourist and domestic airports in the Kingdom, by applying the best experiences, engaging the private sector, attracting local and international investments to enhance the customer experience, as well as improving sustainable infrastructure, and providing valuable benefits for beneficiaries.

SAL is a national facility specialized in providing ground handling services for air cargo and logistical solutions in the Kingdom. It handles 95 percent of the volume of air shipments at airports, making it a major driver in the development of this sector, according to Vision 2030.


China's President Meets US Executives in Beijing

The US and Chinese flags
The US and Chinese flags
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China's President Meets US Executives in Beijing

The US and Chinese flags
The US and Chinese flags

Chinese President Xi Jinping met with American business leaders at the Great Hall of the People in Beijing on Wednesday, as the government tries to woo foreign investors back into the country and international firms seek reassurance over new regulations.

Some 20 firms were invited to participate in the gathering, according to two sources with knowledge of the matter, and the meeting ran for around 90 minutes, one of the sources said.

Stephen Schwarzman, co-founder and CEO of private equity firm Blackstone, Raj Subramaniam, head of American delivery giant FedEx, and Cristiano Amon, the boss of chips manufacturer Qualcomm were among those who attended the meeting, which was organized by the National Committee on US-China Relations, the US-China Business Council and the Asia Society think tank.

Beijing wants to boost growth this year in the world's second largest economy, after foreign direct investment into China shrank 8% in 2023 as investor concern grew over an anti-espionage law, exit bans and raids on consultancies and due diligence firms.

Xi's increasing focus on national security has left many companies uncertain where they might step over the line, even as Chinese leaders make public overtures towards overseas investors.

"The history of China-US relations is a history of friendly exchanges between our two peoples," Xi said, according to state media, while calling on the two countries to "seek common ground and build more consensus."

The US and China have been gradually resuming engagements after relations between the two economic superpowers sank to the lowest in years, clashing over trade policies, the future of democratically ruled Taiwan and territorial claims in the South China Sea.

Wednesday’s gathering took place in the East Hall of the Great Hall of the People, which is reserved for important functions. Attendees sat in a square formation around a large red, orange and green floral installation, a video released by state media showed.

The audience with Xi follows Chinese Premier Li Qiang not meeting visiting foreign CEOs at the China Development Forum in Beijing on March 24-25.

The chance to exchange views with Beijing's second-ranking leader had become a key element of the summit in previous years.
Wednesday's meeting followed on from a dinner in November with US executives in San Francisco, where Xi received a standing ovation.


Egyptian Pound Falls Against Dollar in Currency Markets

A view from an airplane window shows buildings in a densely populated area, in Cairo, Egypt, March 23, 2024 REUTERS/Mohamed Abd El Ghany
A view from an airplane window shows buildings in a densely populated area, in Cairo, Egypt, March 23, 2024 REUTERS/Mohamed Abd El Ghany
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Egyptian Pound Falls Against Dollar in Currency Markets

A view from an airplane window shows buildings in a densely populated area, in Cairo, Egypt, March 23, 2024 REUTERS/Mohamed Abd El Ghany
A view from an airplane window shows buildings in a densely populated area, in Cairo, Egypt, March 23, 2024 REUTERS/Mohamed Abd El Ghany

The Egyptian pound fell against the dollar on Tuesday, nearing 48 pounds in some banks.

Despite Prime Minister Mustafa Madbouly’s assurance of clearing all goods at Egyptian ports, some traders are holding back deliveries, expecting the pound to weaken further.

Madbouly mentioned that the Finance Ministry seized $1.7 billion worth of goods, but owners are hesitant to accept them, waiting for the dollar’s price to drop.

Capital Economics predicts the Egyptian pound will hit 49 against the dollar by year-end, down from the current 47 average, and may drop further to 50-55 in the coming years.

Meanwhile, Egypt’s GDP is expected to grow by 2.3% in 2023-2024, then dip to 1.5% in 2024-2025 before bouncing back to 5% in the following fiscal year.

The transition to a more conventional economic policy will initially slow down growth, but it's expected to pave the way for stronger GDP growth in the long term.

The recent Central Bank’s decision to reduce the pound’s exchange rate hints at a more flexible monetary approach.

This could mean avoiding interest rate hikes and securing an $8 billion deal with the IMF, along with additional assistance from the European Union and the World Bank. It’s a positive sign for Egypt’s financial support.

Those agreements have improved Egypt’s financial standing abroad, with all financial aid promises expected to bring in a significant flow of foreign currency, covering more than the total external financing needs of Egypt.

Meanwhile, Capital Economics notes that foreign capital inflows into local bond and stock markets have sped up, with hopes that Egypt's political moves will boost direct investment.

However, it anticipates some challenges ahead, as the government intends to stick to tight fiscal policy and aims to increase the initial budget surplus from 2.5% to 3.5% of GDP.

Additionally, Capital Economics points to plans to extend the maturity of public debt, which will ease concerns about Egypt's fragile debt situation.

The research firm expects the government debt-to-GDP ratio to drop to 93% in 2024-2025 and 89% in 2025-2026 from an estimated average of 96.2% in the current fiscal year.


ServiceNow CEO: Saudi Tech Boom, Innovation Drive Investment

ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
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ServiceNow CEO: Saudi Tech Boom, Innovation Drive Investment

ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)
ServiceNow CEO Bill McDermott takes part in the LEAP 24 global tech conference. (Asharq Al-Awsat)

ServiceNow CEO Bill McDermott has praised Saudi Arabia’s impressive innovation drive, led by its ambitious tech initiatives.

He cited Saudi Minister of Communications and Information Technology Engineer Abdullah Alswaha’s remarks at the LEAP 24 conference, noting the Kingdom’s rapid digital growth and aspirations to become the region’s top digital market.

McDermott, speaking to Asharq Al-Awsat on the sidelines of LEAP 24, praised the enthusiasm of 230,000 young Saudis at the conference, all dedicated to advancing the country’s digital economy.

He attributed their motivation to the supportive environment fostered by Prince Mohammed bin Salman, Crown Prince and Prime Minister of Saudi Arabia, and his team.

In an interview with Asharq Al-Awsat, McDermott underscored the importance of such factors in ensuring success in the Kingdom.

Investing in Saudi Arabia

Explaining why ServiceNow is investing in Saudi Arabia, McDermott said the Kingdom’s booming market and tech innovation promise significant progress.

He also revealed the US-based tech company inking several deals at LEAP 24. One such deal is a partnership with the Garage project, supporting startups in Riyadh.

McDermott said his company is looking to train Saudi youth on its platform, hire graduates, and open job opportunities.

Moreover, ServiceNow is also establishing a new regional headquarters in Riyadh and plans to invest $500 million and open a data center to support the Kingdom’s growth.

He conveyed his company’s excitement to be part of Saudi Arabia’s journey.

AI revolution

McDermott sees the AI revolution as significant as the iPhone’s launch. He said his company is using AI to drive digital transformation in the tech and information industry’s largest market.

He explained that ServiceNow, a top software firm in digital workflow management, is now incorporating AI into its operations for digital transformation.

According to McDermott, companies are at a crucial moment with AI.

He revealed that ServiceNow is now working to combine cloud computing, digital transformation, and modern AI.

ServiceNow’s ambitions

McDermott highlighted ServiceNow’s presence in Saudi Arabia since 2011, noting ongoing projects and collaborations, particularly during the coronavirus pandemic, such as transforming business processes with the Ministry of Justice and bolstering employee services with the Ministry of Human Resources and Social Development.

He highlighted partnerships with firms like Deloitte for public sector digital transformation and teased upcoming projects.

Moreover, McDermott expressed his goal of making Saudi Arabia a global leader in the sector by prioritizing youth training, business innovation, and AI development to improve services and user experiences.

He aims to establish ServiceNow as the leading enterprise software company of the 21st century and sees Saudi Arabia as a key partner in achieving this goal, anticipating a positive embrace of innovation to boost millions of lives.

Saudi Arabia: A major player in global tech

When asked about Saudi Arabia’s role in global technology, McDermott confidently stated that the Kingdom won't just be a player; it will be a leader in global tech.

This is a crucial moment for the Kingdom, and that strong steps are needed to boost the sector, he remarked.

Many challenges exist, but with ServiceNow’s AI platform, matters can be simplified, he went on to say.

McDermott said his company is looking to streamline workflows and enhance user experiences creatively.

Noting constant improvement, he revealed that users can now talk to the system naturally and easily analyze complex data, dubbing it a big leap forward.

Tech’s new worries

When asked about concerns over new AI outsmarting humans, he stressed that while AI could surpass humans in some areas, the key is ensuring it serves humanity.

Technology’s main purpose is to improve human lives, stressed McDermott, adding that the risk is humans being controlled by tech.

Humans must be kept in charge, affirmed McDermott.

He recalled a 1966 Time magazine article predicting computers would take over most jobs, but today, there are 90 million tech jobs in the US alone.

Furthermore, he revealed that ServiceNow is working on a vast linguistic database to boost AI responses, using carefully collected data.

Great strides forward

McDermott wrapped up by lauding the impressive advancements in the Kingdom, saying that he is truly impressed by Crown Prince Mohammed’s efforts for women’s rights.

This is crucial for ServiceNow, where half of the staff will be women, he noted.

Half of ServiceNow’s leaders are already women.

McDermott stressed that his company plans to uphold this balance because this approach fosters remarkable productivity.

When workplaces promote diversity, fairness, and inclusion, it boosts success, he emphasized.

Saudi Arabia even outshines Silicon Valley in embracing this approach, said McDermott.

Offering advice to Saudi talents, McDermott said embracing the present is key.

With AI advancing rapidly, there are vast opportunities, he added.

ServiceNow provides a top platform in this field, offering job openings in the Kingdom and beyond.

Inviting Saudis to join his company, McDermott revealed that ServiceNow is partnering with the Saudi Digital Academy to train countless young people.


Iraq, Oil Firms Trade Blame Over Shut Türkiye Pipeline 

A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
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Iraq, Oil Firms Trade Blame Over Shut Türkiye Pipeline 

A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)
A general view of the Kirkuk-Ceyhan pipeline linking Iraq and Türkiye at Türkiye's Mediterranean port of Ceyhan. (Reuters)

Foreign oil firms operating in Iraq's Kurdistan region are partly to blame for the delay in resuming crude exports after failing to submit contracts for revision, Iraq's oil ministry said.

The Iraq-Türkiye oil pipeline (ITP) which once handled about 0.5% of global oil supply has been halted, stuck in legal and financial limbo, since March 2023.

The flows were halted after the Paris-based International Chamber of Commerce in a longstanding arbitration case ruled Ankara had violated provisions of a 1973 treaty by facilitating such exports without the consent of the Iraqi federal government.

Iraq's oil ministry in a statement published late on Sunday noted that foreign companies, alongside the Iraqi Kurdish authorities, have still not submitted contracts for revision to the ministry.

The government is seeking to revise such deals after a court ruled ones signed with the Kurdistan Regional Government (KRG) were invalid, it said in response to a statement on Saturday by the Association of the Petroleum Industry of Kurdistan (APIKUR).

Iraq's federal court in 2022 deemed an oil and gas law regulating the Kurdistan region's oil and gas industry as unconstitutional.

Iraq owes Türkiye minimum payments as long as the pipeline is technically operational - estimated by consultancy Wood Mackenzie at around $25 million per month. APIKUR has cited a similar figure saying it understands Iraq owes $800,000 in daily penalties.

APIKUR said the government of Iraq had not "taken the required actions" to reopen ITP, adding that "there has been no real progress" to reopen ITP despite meetings in Baghdad in January between representatives of the Iraqi government, the KRG and international oil companies.

APIKUR said its member companies' "current commercial terms and economic model must be maintained" and called for payment assurances for past and future oil exports.

Iraq's Prime Minister Mohammed Shia al-Sudani is due to meet US President Joe Biden in Washington on April 15 to discuss the future of the US-led coalition in Iraq, as well as Iraqi financial reforms and a US push to wean Iraq - a rare ally of both Washington and Tehran - off Iranian power and gas.

APIKUR said it had conveyed to members of Biden's administration and Congress that the White House should not proceed with the planned visit unless flows through ITP resume, international oil firms get payment assurances and the Iraqi government fully implements the Iraqi federal budget for the KRG.

Responding to a Reuters request for comment, a US State Department spokesperson said the US government "encourages all parties to reach an agreement to resume the flow of oil through the Iraq- Türkiye pipeline as soon as possible."

"Restarting oil exports through the Iraq-Türkiye pipeline would be beneficial for all parties," the spokesperson said.