Omar Al Olama, UAE Minister of State for AI, Digital Economy and Remote Working Applications. World Economic Forum / Pascal Bitz
Omar Al Olama, UAE Minister of State for AI, Digital Economy and Remote Working Applications. World Economic Forum / Pascal Bitz
Omar Al Olama, UAE Minister of State for AI, Digital Economy and Remote Working Applications. World Economic Forum / Pascal Bitz
Omar Al Olama, UAE Minister of State for AI, Digital Economy and Remote Working Applications. World Economic Forum / Pascal Bitz

Governments globally must create a safe digital space, UAE's AI minister says


Layla Maghribi
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Protecting people's data is the paramount concern for governments when regulating the digital sphere, a UAE minister said on Thursday.

During a conversation called "Shaping Empowered Data Societies" at the World Economic Forum 2021, Omar Al Olama said consumers wanted to understand what and why their data is being used for.

Mr Al Olama, the Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, called on businesses to step up their efforts to ensure adequate protection.

“A lot of data is being mined, but not enough investment is put into protecting it,” said the UAE minister, who in 2017 became the first in the world to hold such a portfolio.

Governments and tech companies around the world are increasingly being called on by digital rights campaigners to reorient their practises to greater serve the interests of societies, rather than corporations.

Nighat Dad, a Pakistani lawyer and internet activist, was one such campaigner at the session. Ms Dad, who runs the not-for-profit organisation Digital Rights Foundation, said there was a lack of transparency from governments and tech giants. "We need to take everyone on these conversations with us," she said. "The conversations are happening on the government and tech giant side but end users aren't part of [them]."

Ms Dad said the Covid-19 pandemic had revealed big “digital divides” within communities and was widening the Global North/South gap on human rights and digital development. She stressed the need for governments to take a bigger role in informing people of their existing rights and their applicability in the online space.

The calls for greater consumer protection come amid a worldwide crisis of faith with governments and big tech corporations. According to the 2021 Edelman Trust Barometer, a study published annually by global communications firm Edelman, trust in governments worldwide dipped profoundly in the latter half of 2020. The study also revealed that citizens now looked at businesses more favourably than political institutions when it came to accuracy of information. Speaking at the session, the chief executive of PR firm Edelman, Richard Edelman, suggested that it was now "the moment for businesses to lead" within "parameters" set by governments.

According to Mr Al Olama these parameters need establishing through conversations with governments, businesses and civil societies. “We need to ensure that the internet is the space for globalisation and that everyone’s rights are considered.”

He said that “ensuring inclusivity of rights wherever people are is very important” and stressed the need to work collaboratively across countries. “What made the internet great is its access but what might cause its hindrance is if one country regulates in a way that limits rights others have.”

The UAE ranked 16th globally out of 187 countries in the Open Data Inventory Report of 2020 by Open Data Watch, an international organisation of data experts. The country has been leading Middle East economies in an accelerated global push towards digitisation spurred by the Covid-19 pandemic, according to the 2020 Digital Intelligence Index, a data-driven evaluation of the progress of the digital economy in 90 economies.

Globally, the pandemic is accelerating digitisation -- especially in areas such as payments and retail -- and the UAE, the Arab world's second-largest economy, is projected to benefit the most in the region from AI adoption. The technology is expected to contribute up to 14 per cent to the country’s gross domestic product – equivalent to Dh352.5 billion ($95.9bn) – by 2030, according to a report by consultancy PwC in 2020.

This week, the man leading the world's first dedicated artificial intelligence research university revealed a challenging target: to put the UAE "on the map of AI superpowers".

Speaking to The National, Dr Eric Xing, a world-renowned computer science professor, who was appointed president of Mohamed bin Zayed University of Artificial Intelligence last year, outlined his bold vision for the pioneering institution.

He said his first priority for MBZUAI was to develop a “critical mass” of research output and impact in the shortest amount of time possible.

The university’s curriculum is focused on two areas: machine learning, which provides the mathematical foundation of AI, and computer vision, which takes machine learning a step further to identify and analyse images and videos.

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.”

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