The impact of artificial intelligence (AI) was inescapable at this year’s World Economic Forum Annual Meeting. Whether dialogues were focused on the global economic outlook, the future of the labour force, or the energy transition, the spectre of AI was ever present. And it’s not hard to see why.
With breakthrough technologies and innovations making their way from research labs to factories, supply and value chains, we are on the brink of a new era of social, economic and human possibility. Harnessing and integrating these technological breakthroughs into the global energy system will be crucial to unlocking this immense potential.
This consensus from the Swiss mountains in Davos was also echoed at the International Day of Clean Energy. At a dedicated session hosted at the UAE pavilion at the annual meeting on January 22, global leaders who had gathered underscored the need for greater ambition and faster adoption of technologies to meet the UAE Consensus goals of tripling renewable energy capacity and doubling energy efficiency by 2030.
With 2024 marking the first time that the 1.5°C warming threshold has been breached for the year on average, long-term solutions are as desperately needed, as our time to deploy them is short.
Right now, the research suggests that, if scaled at the right pace, digital technologies can reduce emissions by 20 per cent by 2050 in the three highest-emitting sectors: energy, materials and mobility. That represents a significant portion of the emissions reductions needed to keep a 1.5°C future in our sights.
The UAE, as a global leader in renewable energy, is already demonstrating how AI can be harnessed to achieve energy resilience and security
There is, however, a dichotomy at the centre of the AI-energy revolution. The more AI technologies and tools that are developed, the higher the demand for the energy that supports them will grow. Thus, energy demand is only set to increase the more we depend on AI tools and networks.
A World Economic Forum report from the start of 2024 pointed out that AI’s energy use is currently estimated to be around 2-3 per cent of total global emissions. But that is likely to change rapidly as more companies, governments and organisations use AI to drive efficiency and productivity.
And, when we realise that AI, and in particular generative AI systems might use up to 33 times more energy to complete a task than task-specific software would, it also comes with a renewed sense to make our energy supplies clean and renewable.
For now, the early signs of AI’s effect on the energy sector are encouraging. We are already seeing a wave of technological disruption reshaping the energy system – from transforming renewable energy generation and fundamentally altering how energy is consumed across end-use sectors.
On the supply side, innovations such as advanced solar photovoltaic systems, offshore wind turbines and next-generation grid-scale battery storage are enabling cleaner, more efficient energy production while improving grid reliability.
When transmitted to end-use sectors like transport, buildings, and industry, technologies such as green hydrogen, smart grids and electrification are driving significant reductions in carbon emissions. What’s more, digital tools such as AI and blockchain are optimising energy efficiency and facilitating the integration of decentralised renewable energy systems.
This tech-driven energy revolution is simultaneously transforming how we produce and consume energy, and creating a new development pathway that prioritises clean, affordable and accessible energy.
The integration of AI with renewables is also helping enhance community resilience in vulnerable regions. For example, machine learning algorithms are being used to optimise microgrids, ensuring uninterrupted power supplies during extreme weather events. AI-powered predictive maintenance tools are reducing downtime in solar and wind facilities, while advanced forecasting models improve energy storage and grid balancing to accommodate variability in renewable energy sources. Such digital solutions are critical in scaling renewable energy systems globally and ensuring they are resilient to disruptions.
The UAE, as a global leader in renewable energy, is already demonstrating how AI can be harnessed to achieve energy resilience and security. For instance, the Mohammed bin Rashid Al Maktoum Solar Park uses AI to optimise solar panel cleaning schedules and enhance energy output.
The UAE has also integrated AI into its energy planning systems, enabling real-time monitoring of grid performance and predictive analytics to mitigate potential outages. Through initiatives such as Masdar City and partnerships with global technology leaders, the UAE is using AI to drive efficiencies, reduce emissions and future-proof its energy systems.
The convergence of AI and the energy transition presents an unprecedented opportunity to tackle the twin challenges of decarbonisation and growing energy demand. However, realising this potential requires co-ordinated global action. Policymakers must prioritise investments in clean energy technologies, while industry stakeholders adopt AI solutions responsibly to ensure they align with sustainability goals.
The UAE is showing what is possible when innovation meets ambition, but it cannot do this alone. If we want to keep 1.5°C within reach and create a future powered by clean, reliable energy, the time to act is now. AI, when integrated thoughtfully and equitably into energy systems, can help us achieve a transformative and sustainable future. But only if we commit to scaling the technologies and policies that make it possible.
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.”
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
UAE currency: the story behind the money in your pockets
THE SPECS
Engine: 2.0-litre 4-cylinder turbo
Power: 275hp at 6,600rpm
Torque: 353Nm from 1,450-4,700rpm
Transmission: 8-speed dual-clutch auto
Top speed: 250kph
Fuel consumption: 6.8L/100km
On sale: Now
Price: Dh146,999
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Vikram%20Vedha
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Company%20profile
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The specs
Engine: 1.6-litre 4-cyl turbo
Power: 217hp at 5,750rpm
Torque: 300Nm at 1,900rpm
Transmission: eight-speed auto
Price: from Dh130,000
On sale: now
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Day 1 results:
Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)
Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)
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The specs
Engine: 3.5-litre twin-turbo V6
Power: 380hp at 5,800rpm
Torque: 530Nm at 1,300-4,500rpm
Transmission: Eight-speed auto
Price: From Dh299,000 ($81,415)
On sale: Now
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Mohammed bin Zayed Majlis
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
On sale: now
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
- Stay invested: Time in the market, not timing the market, is critical to long-term gains.
- Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
- Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5