Sudan War Enters Third Year as Civilians Remain Under Fire

Soldiers arrive in an area recaptured by the Sudanese army south of Khartoum, March 27. (AP)
Soldiers arrive in an area recaptured by the Sudanese army south of Khartoum, March 27. (AP)
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Sudan War Enters Third Year as Civilians Remain Under Fire

Soldiers arrive in an area recaptured by the Sudanese army south of Khartoum, March 27. (AP)
Soldiers arrive in an area recaptured by the Sudanese army south of Khartoum, March 27. (AP)

Sudan’s civil war entered its third year on Monday, with the conflict growing increasingly brutal by the hour. Images of atrocities, summary executions, and ethnically targeted violence flood social media, underscoring a war that has turned into a relentless assault on civilians.

What began as a power struggle between the Sudanese army and the paramilitary Rapid Support Forces (RSF) has morphed into a nationwide catastrophe engulfing every region — north to south, east to west. Field killings are intensifying, and civilians are frequently shot based on their identity, ethnicity, or origin. For many Sudanese, stepping outside or speaking up can be a death sentence.

The violence has not been confined to military targets. According to the United Nations, the war has unfolded in cities, not battlefields, with both sides deeply entrenched in urban zones, directing shelling and airstrikes toward civilian neighborhoods. It’s a war against the people, UN agencies say.

A nation in ruins

The toll is staggering. UN and media reports estimate the war has caused more than $200 billion in economic losses and damaged nearly 60% of Sudan’s infrastructure. More than 60,000 people have been killed, and hundreds of thousands wounded or permanently disabled.

Smoke is seen rising in Khartoum, Sudan, April 15, 2023. (AP)

One-third of the country’s population — roughly 14 million people — has been displaced internally or fled to neighboring countries. The EU has described Sudan’s humanitarian crisis as the worst of the 21st century.

With no political resolution in sight despite recent advances by the army, the suffering continues to deepen. Nearly half of Sudan’s 42 million people now live below the poverty line, and around 20 million face acute hunger, according to UN figures.

Hospitals, schools, bridges, and essential infrastructure have been decimated, leaving a broken nation struggling to survive amid a conflict that shows no sign of ending.

In a grim reflection of the deepening conflict, two nonagenarian men were executed in cold blood in the town of Tayba Al-Hasanab, south of Khartoum, simply for revealing their ethnic identity.

Local sources said Osman Mohamed and his companion, Hasbullah Abu Taqiyya, both originally from western Sudan, were targeted by armed extremists accusing them of “collaborating with the other side.”

The two men were reportedly slaughtered near their homes by militants who accused them of ethnic affiliation with rival factions in the war.

The town lies close to the Tayba military camp, one of the most strategic RSF bases near Jebel Aulia, established before the 2018 fall of Sudan’s Islamist regime. Now, the very identity of residents can serve as a death sentence in a capital divided and terrorized by ethnic violence.

As Sudan’s war enters its third year, fighters on both sides have increasingly turned their weapons on civilians they perceive as “sympathetic” to the enemy. Extremists often refer to those who have not fled their homes or who belong to certain ethnic groups as “social incubators” for the opposing side.

In some cases, all it takes is a question — “What is your tribe?” — or a glance at someone’s facial features for them to be executed without trial.

Instead of offering safety, militants have overrun Khartoum, unleashing waves of retaliatory violence on already traumatized communities. Bullets aimed at heads and hearts leave no room for mercy — just swift executions under the pretext of “collaboration”.

Supporters of the Sudanese armed popular resistance, which backs the army, ride on trucks in Gedaref in eastern Sudan on March 3, 2024. (AFP)

Industrial sector near collapse

Sudan has lost a quarter of its capital stock and seen the near-total collapse of its industrial sector as war grinds into a third year, a leading economist told Asharq Al-Awsat.

Abdel Azim Al-Amawi, an economic adviser and head of market research at Gulf-based “Aswaq Al-Mal", said the war has caused devastating damage across political, social, and economic fronts. Key infrastructure — including roads, bridges, airports, factories, and development projects — has been severely damaged or destroyed.

“The continued conflict has led to the loss of about 25% of Sudan’s capital reserves,” Al-Amawi said, adding that macroeconomic indicators have sharply deteriorated. Sudan’s economy contracted by 37.5% in the first year of war, the fiscal deficit surged to 9.1% of GDP, and annual inflation soared to 245%, according to his estimates.

Al-Amawi noted that Sudan’s economy is largely dependent on the services sector, which makes up 46.3% of GDP, followed by agriculture at 32.7% and industry at 21%. “The industrial sector is heavily concentrated in Khartoum, accounting for 85% of its activity,” he said.

“With the capital’s factories either damaged or destroyed, the industrial base has effectively collapsed.”

The destruction underscores the broader economic freefall facing Sudan, where businesses are shuttered, investment has evaporated, and millions are displaced with little hope of recovery in sight.

Sudan’s already fragile energy and agriculture sectors have been pushed to the brink by war, with the country now relying entirely on fuel imports and facing a steep drop in food production.

Al-Amawi told Asharq Al-Awsat that Sudan previously met 30% of its fuel needs through domestic production, while importing the remaining 70%.

But since the outbreak of war, repeated airstrikes have destroyed the Al-Jaili refinery north of Khartoum — the country’s largest, which once produced 3,800 tons of diesel, 2,700 tons of petrol, and 800 tons of cooking gas per day.

“With the refinery offline, Sudan now imports 100% of its petroleum needs, putting immense pressure on already strained foreign currency reserves,” Al-Amawi explained.

The war has also taken a heavy toll on agriculture, with grain production falling by 46% compared to pre-war levels and 41% below the five-year average. The 2023/2024 harvest saw sorghum output drop by 42% and millet by 64%, worsening an already dire food security crisis.

According to Al-Amawi, 14 million people have been displaced by the conflict, and around 1.7 million have fled the country — making Sudan home to the world’s largest displacement crisis.

Sudanese Children suffering from malnutrition are treated at an MSF clinic in Metche Camp, Chad, near the Sudanese border, April 6, 2024. (AP)

Currency in freefall, revenues dry up

The Sudanese pound has collapsed under the weight of war. Al-Amawi said the currency lost 74% of its value in the first year of the conflict and continued its slide in 2024, reaching an 81% devaluation. As of 2025, the US dollar is trading at 2,107 Sudanese pounds on the parallel market.

“The war has crippled the economy, wiping out 85% of government revenues,” Al-Amawi said. “Sudan has shifted into a full-scale war economy, with an unregulated shadow economy expanding across much of the country.”

With infrastructure in ruins, state revenues gutted, and basic services collapsing, Sudan’s economic future — like its political one — remains dangerously uncertain.

Agricultural backbone crumbling

Sudan’s once-critical agricultural sector — the backbone of its economy and primary source of employment — has suffered a 65% collapse since war broke out, with supply chains severed, farmers displaced, and two consecutive planting seasons lost, a leading economist has said.

Omer Sid Ahmed, writing in a commentary on the Sudanese news site “Al-Rakoba,” said the sector, which employs around 80% of the workforce and contributes 32.7% to GDP, is facing near-total disruption.

Fuel, seed, and fertilizer shortages have deepened the crisis, and the upcoming agricultural season is already under threat due to continued insecurity and logistical paralysis.

“Farmers have been displaced from their land, supply routes are no longer operational, and inputs are unavailable,” Sid Ahmed wrote. “The sector has been devastated.”

While he estimated agricultural and infrastructure losses could reach $100 billion by the end of 2024, media reports suggest overall war-related losses now exceed $200 billion.

“With war still raging and infrastructure continuing to be destroyed, calculating the true cost is nearly impossible,” Sid Ahmed said. “The damage is not static — it is escalating day by day.”

Sudan’s agricultural collapse has exacerbated an already dire humanitarian crisis, with food insecurity surging and millions relying on aid, much of which is unable to reach conflict-hit regions.

Health system in collapse as hospitals targeted

Sudan’s health system is buckling under the weight of war, with more than two-thirds of hospitals and health centers out of service and medical infrastructure repeatedly targeted by shelling and occupation, according to the country’s acting health minister.

Dr. Haitham Mohamed Ibrahim told Asharq Al-Awsat that 70% of public and private medical facilities in Khartoum, Darfur, Kordofan, Gezira, Sennar and parts of the Nile states are no longer operational. The collapse has created what he described as an “unprecedented health crisis.”

The minister accused the RSF of launching repeated attacks on hospitals. In El Fasher, the main city in North Darfur, hospitals have reportedly been struck more than 15 times.

Ibrahim also said the country’s main public health laboratory in Khartoum was bombed and later converted into a military base in the early days of the conflict. Specialized medical centers have also been destroyed or looted.

He estimated damages to the health sector at more than $11 billion, as doctors flee, medical supplies run dry, and critical services grind to a halt.

Aid agencies have warned that millions are now without access to basic healthcare, while disease outbreaks are spreading rapidly in displacement camps amid poor sanitation and shortages of medicine.

More than 60 doctors and medical staff have been killed since Sudan's civil war erupted, including seven dialysis specialists who were treating patients when they came under attack, said Ibrahim.

He told Asharq Al-Awsat that the RSF was responsible for the deaths, accusing it of targeting healthcare workers in areas under its control. He said the war has triggered a mass exodus of doctors abroad, leaving hospitals critically understaffed.

Students are seen in Port Sudan on December 28. (AFP)

“The shortage of medical personnel is severe,” he warned, noting that many have sought refuge outside the country amid growing insecurity.

Despite the grim toll, Ibrahim said Sudanese doctors had received recognition from the Arab Health Ministers Council, which awarded the “Arab Doctor” prize to a Sudanese physician in honor of the profession’s sacrifices during the war.

The minister also warned that widespread destruction of health facilities and environmental degradation have contributed to the rapid spread of disease. Outbreaks of malaria, dengue fever, and cholera have taken hold in displacement camps and conflict-affected areas, killing tens of thousands, he stressed.

Health experts say Sudan is now facing one of the worst public health crises in its history, with millions lacking access to clean water, vaccines, or emergency care.

Schools turned into barracks as war devastates education

The war has devastated the country’s education system, forcing millions of children out of school, with thousands of facilities either destroyed, occupied by fighters, or repurposed as shelters — and in some cases, even as makeshift cemeteries.

“This war is a catastrophe that has struck at the very foundation of education in Sudan,” said Sami Al-Baqir, spokesperson for the Teachers’ Committee, an independent union, in comments to Asharq Al-Awsat.

He said there are no comprehensive figures on the total damage, but estimates indicate that up to 20,000 schools have been either partially or completely affected by the conflict. Before the war, Sudan had around 12 million school-aged children. Now, between 6 and 7 million have been out of school for the entire duration of the two-year conflict. Fewer than 4 million have managed to continue their studies, he added.

“Some schools have been turned into military barracks, others bombed, and many transformed into shelters for displaced families. Tragically, some have even been used as mass graves,” Al-Baqir said. “This is destruction beyond Sudan’s capacity to recover from in the near future.”

He also warned of a looming educational and social divide, as schools remain operational only in areas controlled by the army. “I fear the fragmentation of the Sudanese national identity,” he said, referring to the 2024 national exams, which were held only in government-controlled zones.

According to Al-Baqir, only 200,000 out of 570,000 students who were expected to sit for the Sudanese certificate exam were able to do so. “The future of those left behind is already slipping away,” he said.



What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
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What to Know about China's Drills around Taiwan

A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP
A rocket launches from Pingtan island in eastern China's Fujian province, the closest point to Taiwan. ADEK BERRY / AFP

China's military drills around Taiwan entered their second day on Tuesday, the sixth major maneuvers Beijing has held near the self-ruled island in recent years.

AFP breaks down what we know about the drills:

What are the drills about?

The ultimate cause is China's claim that Taiwan is part of its territory, an assertion Taipei rejects.

The two have been governed separately since the end of a civil war in 1949 saw Communist fighters take over most of China and their Nationalist enemies flee to Taiwan.

Beijing has refused to rule out using force to achieve its goal of "reunification" with the island of 23 million people.

It opposes countries having official ties with Taiwan and denounces any calls for independence.

China vowed "forceful measures" after Taipei said this month that its main security backer, the United States, had approved an $11 billion arms sale to the island.

After the drills began on Monday, Beijing warned "external forces" against arming the island, but did not name Washington.

China also recently rebuked Japanese Prime Minister Sanae Takaichi after she said the use of force against Taiwan could warrant a military response from Tokyo.

What do the drills look like?

Chinese authorities have published a map showing several large zones encircling Taiwan where the operations are taking place.

Code-named "Justice Mission 2025", they use live ammunition and involve army, navy, air and rocket forces.

They simulate a blockade of key Taiwanese ports including Keelung in the north and Kaohsiung in the south, according to a Chinese military spokesperson and state media.

They also focus on combat readiness patrols on sea and in the air, seizing "comprehensive" control over adversaries, and deterring aggression beyond the Taiwanese island chain.

China says it has deployed destroyers, frigates, fighters and bombers to simulate strikes and assaults on maritime targets.

Taipei detected 130 Chinese military aircraft near the island in the 24 hours to 6:00 am on Tuesday (2200 GMT on Monday), close to the record 153 it logged in October 2024.

It also detected 14 Chinese navy ships and eight unspecified government vessels over the same period.

AFP journalists stationed at China's closest point to Taiwan saw at least 10 rockets blast into the air on Tuesday morning.

How has Taiwan responded?

Taipei has condemned China's "disregard for international norms and the use of military intimidation".

Its military said it has deployed "appropriate forces" and "carried out a rapid response exercise".

President Lai Ching-te said China's drills were "absolutely not the actions a responsible major power should take".

But he said Taipei would "act responsibly, without escalating the conflict or provoking disputes".

US President Donald Trump has said he is not concerned about the drills.

How common are the drills?

This is China's sixth major round of maneuvers since 2022 when a visit to Taiwan by then-US House Speaker Nancy Pelosi enraged Beijing.

Such activities were rare before that but China and Taiwan have come close to war over the years, notably in 1958.

China last held large-scale live-fire drills in April, surprise maneuvers that Taipei condemned.

This time, Beijing is emphasizing "keeping foreign forces that might intervene at a distance from Taiwan", said Chieh Chung, a military expert at the island's Tamkang University.

What are analysts saying?

"China's main message is a warning to the United States and Japan not to attempt to intervene if the CCP (Chinese Communist Party) uses force against Taiwan," Chieh told AFP.

But the time frame signaled by Beijing "suggests a limited range of activities", said Ja Ian Chong, an associate professor at the National University of Singapore.

Falling support for China-friendly parties in Taiwan and Beijing's own army purges and slowing economy may also have motivated the drills, he said.

But the goal was still "to cow Taiwan and any others who might support them by demonstrating that Beijing's efforts to control Taiwan are unstoppable".


Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
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Why Do the Houthis in Yemen View Israel's Recognition of Somaliland as a Direct Threat?

People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)
People gather in front of a digital billboard featuring Houthi leader Abdulmalik al-Houthi, in Sanaa, Yemen, 28 December 2025. (EPA)

The Iran-backed Houthi militias in Yemen view Israel's recognition of Somaliland as direct threat, warning that any Israeli presence in the separatist region will be considered a military target.

Somaliland declared independence from Somalia in 1991. The region has operated autonomously since then and possesses its own currency, army and police force.

Diplomatic isolation has been the norm -- until Israel's move to recognize it as a sovereign nation, which has been criticized by the African Union, Egypt, the six-nation Gulf Cooperation Council and the Saudi-based Organization of Islamic Cooperation.

The European Union has insisted Somalia's sovereignty should be respected.

Houthi leader Abdelmalik al-Houthi said Israel's move was an "act of aggression on Somalia, Yemen and the security of the region."

In a statement, he added that Tel Aviv was seeking to establish "a military and intelligence foothold" in one of the world's most important waterways. He also warned that any Israeli presence in the region will be deemed a "legitimate target" for the Houthis.

Somaliland is strategically located at the entrance of the Gulf of Aden and close to the Mandeb Strait. It is one of the world's busiest waterways.

Analysts said that Israel's recognition gives it a direct outlet to the Red Sea, boosts its ability to monitor waterways and perhaps allows it to carry out military or intelligence strikes against its rivals, notably the Houthis in Yemen.

Since October 7, 2023, the Houthis had launched rocket and drone attacks against Israel and targeted ships affiliated with it in marine shipping lanes. Israel retaliated by carrying out attacks against Houthi targets in Yemen. The attacks by both sides ended with the announcement of the ceasefire in Gaza.

Political sources said the Houthis are alarmed at the prospect of Israel having a presence in Somaliland. In their view, this will lead to them being surrounded from the southwest. They also fear that Somaliland will be used as a platform for Israeli attacks against them in Yemen.


AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
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AI Tsunami Plunges Millions into Unemployment

“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)
“Artificial intelligence in the physical world” is displayed on a screen during a conference showcasing advances in autonomous driving technology in California on Dec. 11, 2025. (Reuters)

The year 2025 brought no respite for Lebanese language editor and proofreader Hamida Al-Shaker. Before the year had run its course, her decades-long professional journey was abruptly cut short.

Nearly 60, Al-Shaker had never used artificial intelligence tools or held a conversation with ChatGPT, as millions now do. She was unaware that the technologies rapidly spreading across mobile phones and computers were already doing her job, faster and more efficiently than any human could.

That quiet technological advance proved devastating. A sweeping transformation in the labor market became a tsunami, pushing Al-Shaker and millions of workers worldwide toward unemployment, sparing no sector and few age groups. The impact has been particularly harsh on employees over 50 who failed to keep pace with the accelerating speed of technological change.

According to the website allaboutai, the adoption of artificial intelligence has already contributed to the loss of around 14 million jobs globally. And the wave is far from over. As many as 92 million jobs could disappear worldwide over the next five years.

At its core, artificial intelligence enables computer systems to mimic human thinking, make decisions, and execute complex tasks, from planning to practical application, particularly in editorial and knowledge-based work.

Shock and an uncertain future

Al-Shaker was unaware of this reality, a fact that led to a shock, followed by another, during 2025, which saw the widest spread yet of AI applications. The first shock came when she received a call from the human resources department informing her that her salary would be cut by 50 percent due to “financial difficulties facing the company.” Less than five months later, a second call informed her that she was being laid off, without explanation.

According to Al-Shaker, citing her department head, she was not alone. Half of the team lost their jobs due to the impact of artificial intelligence on client contracts, as companies increasingly turned to AI to draft their news, statements, and reports, either for free or at minimal monthly subscription costs, compared with the sums they previously paid to public relations and advertising agencies.

In this context, economic analyses published by Reuters indicate that annual subscriptions to advanced AI tools, even at the enterprise level, often do not exceed the cost of paying a single employee’s salary for a limited number of months. From a purely managerial perspective, this makes such decisions easy to justify financially.

As a result, Al-Shaker and her colleagues became just another figure in a cold equation. Companies boost profits and cut production costs, while growing numbers of workers are pushed out of the labor market, not because they lack competence, but because algorithms are cheaper than people.

Most affected sectors

Al-Shaker’s story is not an isolated case. It is part of a growing global phenomenon affecting workers across multiple sectors. Specialized reports indicate that jobs based on routine tasks or repetitive data processing are most vulnerable, as automation and generative AI tools expand. Among the most affected sectors are:

Customer service and call centers, where intelligent chat systems and text and voice analysis tools can now handle user inquiries with high efficiency, according to TechRT.

Data and administrative support tasks, such as data entry, file classification, and secretarial work, are being replaced by advanced automation tools, according to Complete AI Training.

Retail and supply chains, where self-checkout systems, smart warehouses, and inventory automation have reduced the need for cashiers and traditional warehouse workers, according to Pleeq Software and ninjatech.blog.

Manufacturing and production, where the spread of robots and automated control systems has intensified the impact of AI on manual labor jobs, according to All About AI.

Accounting and financial operations, where demand for basic roles has declined due to reliance on intelligent financial software capable of handling bookkeeping and routine processes, according to Complete AI Training.

Content creation and media, which have not been spared, are now threatened as AI is capable of writing, summarizing, and rewriting content, posing a challenge to a range of basic writing tasks.

Many workers who lost their jobs do not realize that they are victims of the so-called Fourth Industrial Revolution, which Klaus Schwab, founder and executive chairman of the World Economic Forum at the time, warned about years earlier.

Speaking at the World Government Summit in Dubai in 2016, Schwab said the world was “on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another.”

He added that the scale, scope, and complexity of the changes would be unprecedented, and that while their exact shape remained unclear, the response would have to be integrated and comprehensive across the public and private sectors, academia, and civil society.

Market demands and human skills

Much of what Schwab predicted has now come to pass, particularly in recent months, as companies worldwide accelerate their adoption of AI tools. Experience alone is no longer enough to remain competitive in the labor market. Traditional jobs are changing rapidly, and the required human skills have become more specialized and complex, with greater emphasis on working alongside intelligent systems and turning information into added value.

Professionals who understand how to integrate AI tools into their daily work without sacrificing quality or analytical depth are increasingly in demand, according to Maziad Hijaz‏, Editor-in-Chief at Hewar Group‏ in Riyadh.

Hijaz told Asharq Al-Awsat that artificial intelligence has become an essential part of daily work in terms of speed and volume, while review, editing, and analysis remain entirely human responsibilities to ensure quality.

He added that the sector now requires new skills, and those who fail to adapt will be left behind. These include utilizing AI tools for writing and analysis, developing data literacy, employing predictive analysis, and transforming information into compelling narratives. Combining human skills with AI tools is what ensures excellence.

Firas Barakat, a strategic communications expert in Saudi Arabia, said AI represents a pivotal turning point in labor markets, enhancing efficiency while reshaping the nature of jobs and required skills.

Speaking to Asharq Al-Awsat, Barakat said AI has undoubtedly caused the loss of traditional roles involving routine tasks, but at the same time, it is a major engine for generating new jobs in advanced fields such as data analysis, cybersecurity, smart systems management, and digital solutions engineering, roles that did not exist just a few years ago.

History repeats itself

Technology expert Hassan Yahya, based in the United States, offered a historical perspective. He said this is not the first time the world has been stunned by technological advances, noting that similar fears over job losses have accompanied every major innovation.

He pointed to 1959, when General Motors introduced the industrial robot Unimate, triggering widespread warnings about threats to employment.

Yahya said that AI is already affecting millions of jobs, with projections from the World Economic Forum indicating that 92 million jobs will disappear over the next five years. However, more than 170 million new jobs are expected to be created, meaning a fundamental transformation of work rather than mass unemployment.

He added that eliminating jobs without replacing them does not serve companies or economies, making the creation of new roles inevitable. However, this requires learning how to work with AI, as ignoring the shift could leave many people outside a rapidly changing labor market.

Cost-cutting and profit maximization

The experiences of employees cannot be separated from a recurring economic equation that is evident in thousands of companies worldwide. Instead of retaining experienced staff with associated salaries, insurance, and end-of-service benefits, many firms are opting to replace them with AI.

A World Economic Forum report found that 41 percent of global companies plan to reduce their workforce by 2030 due to increased reliance on AI and automation.

Hijaz said AI adoption has also reshaped relationships with clients, accelerating work and significantly improving quality. He cited a Deloitte study showing that integrating AI into public relations reduced content production time by 25 to 35 percent while improving accuracy.

A market worth billions

The gains are split between business owners and AI companies, whose financial returns contrast sharply with the reality faced by thousands of displaced workers. In mid-2025, a Reuters report stated that OpenAI, the developer of ChatGPT, had reached annual revenues of around $10 billion by the end of the first half of the year, on track to exceed $12.7 billion by year's end, driven by surging demand for its services.

This growth is not limited to OpenAI. A Forbes report showed that other global technology companies with AI divisions are generating billions of dollars in additional annual revenue, making AI one of the most important profit sources for major tech firms, even as some lay off staff to improve cost efficiency.

Key players

The main players in the sector include OpenAI, best known for ChatGPT and a leader in large language models, with a strategic partnership with Microsoft.

Google DeepMind follows, having developed powerful models such as Gemini and AlphaGo, and leading in scientific, medical, and research-oriented AI.

Microsoft itself has become a global force in AI, investing billions in OpenAI and integrating AI across Windows, Office through Copilot, and Azure AI.

NVIDIA focuses on developing the chips and processors that power AI, while Meta offers open-source models such as LLaMA. Amazon Web Services leads in cloud-based AI, and Anthropic has emerged as a strong competitor in the field of language models.

The global AI market was estimated at around $747.9 billion in 2025 and is projected to grow to $2.74 trillion by 2032, according to AffMaven.

Concerns over consequences

The stark contrast between multibillion-dollar AI revenues and the growing risk facing millions of workers raises a central ethical and economic question. Why do companies benefit from technology to cut costs and boost profits while often postponing or ignoring their social responsibility toward displaced employees?

Economists warn that such savings are frequently achieved without genuine retraining efforts or alternative job creation, deepening global unemployment rather than addressing it.

Islam Al-Shafii, an economist based in New York, cited remarks by US Federal Reserve Chair Jerome Powell on Dec. 20, warning of waves of layoffs linked to AI or companies halting job postings for the same reason.

Al-Shafii said the current fear of AI remains precautionary, as it has not yet fully replaced humans. The real risk, he said, is that work previously requiring five employees can now be done by one person using AI.

He added that while some professions remain relatively safe for now, such as skilled trades, concerns persist over safety and decision-making, with international organizations expressing reservations.

Breaking monopolies

Yahya argued that confronting these changes requires breaking three major monopolies: the monopoly of university degrees in hiring, as companies like Google and Dell focus on skills rather than diplomas; the technological monopoly, as AI empowers individuals to execute ideas without large teams; and the language monopoly, as AI allows interaction in native languages, opening the digital economy to millions.

The digital economy is expected to exceed $24 trillion by 2025, accounting for approximately 21 percent of the global economy and growing faster than traditional sectors.

Capitalism under strain

Al-Shafii warned that advanced capitalist societies, which rely heavily on tax revenues from employees, could face systemic strain if jobs are replaced by AI. Without a sufficient tax base, governments may struggle to fund essential services, which can potentially lead to social instability and collapse.

He noted that business owners who once built factories in East Asia for cheap labor are now returning home to rely on robots for production.

United Nations concern

The issue has also reached the United Nations, particularly at its headquarters in New York. Al-Shafii stated that there is a deep concern over AI, but institutions often focus on gains while overlooking the associated losses.

He noted that AI supports many sustainable development goals and cybersecurity efforts, but its negative aspects, including cyber fraud and surveillance risks, have yet to be fully addressed. UN Secretary-General Antonio Guterres has repeatedly warned against militarizing AI and entrusting humanity’s future to algorithms.

Threat or opportunity?

Concerns over AI extend beyond job losses to issues of transparency and information security. Hijaz said AI requires greater responsibility to ensure accuracy and disclosure.

Asked whether AI is a threat or an opportunity, he said it is an inevitable development that must be harnessed. Like the computer and the internet before it, initial fears will likely give way to empowerment.

He added that creativity remains a uniquely human value that AI cannot replace, and that technology enhances rather than eliminates it.

Not a replacement

Translation professor Mohammed Khair Nadman told Asharq Al-Awsat that AI tools now save around 60 percent of time in translation and writing, supporting but not fully replacing human work. He warned that AI can still make serious errors, making human oversight essential.

A final attempt

Al-Shaker, living in crisis-hit Lebanon without a private sector pension system, believed her regional company job was secure. After losing it, she tried to catch up, creating a LinkedIn account, registering on job platforms, taking free online courses, and sending dozens of resumes, often receiving automated or no responses.

Her story reflects the dilemma of an entire generation pushed out of the market, not due to lack of competence, but because the rules changed abruptly.

She ended with a bitter question: Nearly two centuries after the Industrial Revolution sparked the call, “Workers of the world, unite,” will there now be a call saying, “Employees of the world, unite?”