Investments in key information and communications technology verticals are expected to play a crucial role in driving the UAE’s sustainability goals as it gears up for the economy of the future, the chief executive of Emirates Integrated Telecommunications Company has said.
Four growing technologies – the Internet of Things, artificial intelligence, machine learning and big data analytics – are pegged to enhance operational efficiency and productivity across various sectors, Fahad Al Hassawi told The National on the sidelines of the Envision conference in Dubai.
Envision, hosted by EITC, known as du, was held in coordination with the International Data Corporation and the UAE Ministry of Industry and Advanced Technology.
Implementing these technologies in key sectors – which include manufacturing, agriculture, and smart cities, among others – will help them boost efficiency, he said.
"ICT plays a crucial role in driving sustainability by enabling innovations in various sectors ... it is a cornerstone in the UAE's drive towards sustainability, with innovations spanning various sectors," Mr Al Hassawi said.
"Real-time data collection and analysis will revolutionise decision-making processes and drive innovation to new heights."
In addition, investments focused on digitalisation to implement automation, robotics, machine learning and digital twins in industries will help lead efforts to drive sustainability through less carbon emissions, he said.
"Data-driven approaches for waste management and water conservation will reduce costs annually while positively impacting the nation's gross domestic product."
The UAE is investing heavily in its technological capabilities and rolling out several initiatives as it prepares for the economy of the future.
ICT spending in the UAE is expected to hit $23 billion in 2024, marking a compound annual growth rate of 8 per cent from 2019, latest data from the Ministry of Economy shows.
AI alone is expected to contribute around $96 billion by 2030, equivalent to about 14 per cent of GDP, it said.
Globally, ICT spending is projected to hit $5.8 trillion in 2023, a 6.4 per cent annual growth over 2022, data from Statista shows.
Economic growth
Advanced technologies are also a key pillar to support the UAE's Net Zero 2050 Strategic Initiative, which calls for Dh600 billion ($163 billion) to be invested in clean and renewable energy sources in the next three decades.
"ICT solutions are not only driving economic growth but also contributing to sustainability goals," Mr Al Hassawi said.
Smart cities, which several countries are pushing to develop and implement, encapsulate the importance of advanced technologies.
In the UAE, these are "being crafted" with a focus on optimising energy consumption, transportation systems and public services, Mr Al Hassawi said.
The value of the global smart city market is projected to surge more than two and a half times to $1.52 trillion by 2030, from an estimated $594.4 billion this year, data from Research and Markets shows.
"Harnessing the benefits of technology in urban environments has led the UAE to be at the forefront of pioneering the convergence of technology and sustainability in urban development," he said.
The UAE continues to expand its manufacturing and industry sectors, with a focus on technology and sustainability.
Its Industry 4.0 initiative, announced in October 2021, was designed to help the UAE realise its economic potential by increasing the use of deep learning, machine learning, AI, additive manufacturing and the Internet of Things, into the value and supply chains that support the industrial sector.
The UAE which is hosting the Cop28 climate conference in November, is also adopting other sustainability initiatives, like the waste-to-energy projects in Abu Dhabi, Dubai and Sharjah.
These projects are estimated to power hundreds of thousands of homes when fully complete.
"These advancements, combined with a commitment to reducing carbon emissions, underscore the UAE's vision of a sustainable future for its residents," Mr Al Hassawi said.
In agricultural technology, innovations such as precision farming, hydroponics, IoT and data analytics are enhancing crop productivity and water conservation.
A standout application is vertical farming, with approximately 36 per cent of the UAE's AgriTech market dedicated to this indoor farming subsector, latest data from the Sharjah Research Technology and Innovation Park showed.
"This approach is reducing the UAE's reliance on food imports, bolstering the employment market and ensuring food security," Mr Al Hassawi said.
Fixtures
Wednesday
4.15pm: Japan v Spain (Group A)
5.30pm: UAE v Italy (Group A)
6.45pm: Russia v Mexico (Group B)
8pm: Iran v Egypt (Group B)
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY%20PROFILE
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PSL FINAL
Multan Sultans v Peshawar Zalmi
8pm, Thursday
Zayed Cricket Stadium, Abu Dhabi
The specs: 2019 Cadillac XT4
Price, base: Dh145,000
Engine: 2.0-litre turbocharged in-line four-cylinder engine
Transmission: Nine-speed automatic
Power: 237hp @ 5,000rpm
Torque: 350Nm @ 1,500rpm
Fuel economy, combined: 8.7L / 100km
The Freedom Artist
By Ben Okri (Head of Zeus)
'The%20Alchemist's%20Euphoria'
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Results:
Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.
Country-size land deals
US interest in purchasing territory is not as outlandish as it sounds. Here's a look at some big land transactions between nations:
Louisiana Purchase
If Donald Trump is one who aims to broker "a deal of the century", then this was the "deal of the 19th Century". In 1803, the US nearly doubled in size when it bought 2,140,000 square kilometres from France for $15 million.
Florida Purchase Treaty
The US courted Spain for Florida for years. Spain eventually realised its burden in holding on to the territory and in 1819 effectively ceded it to America in a wider border treaty.
Alaska purchase
America's spending spree continued in 1867 when it acquired 1,518,800 km2 of Alaskan land from Russia for $7.2m. Critics panned the government for buying "useless land".
The Philippines
At the end of the Spanish-American War, a provision in the 1898 Treaty of Paris saw Spain surrender the Philippines for a payment of $20 million.
US Virgin Islands
It's not like a US president has never reached a deal with Denmark before. In 1917 the US purchased the Danish West Indies for $25m and renamed them the US Virgin Islands.
Gwadar
The most recent sovereign land purchase was in 1958 when Pakistan bought the southwestern port of Gwadar from Oman for 5.5bn Pakistan rupees.
Afcon 2019
SEMI-FINALS
Senegal v Tunisia, 8pm
Algeria v Nigeria, 11pm
Matches are live on BeIN Sports
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
