Have you registered for The National? For unlimited access to all our content head here to register for free
Apple's latest generation of flagship smartphones is now powered by generative artificial intelligence as the company adopts the latest technology that is fast gaining traction. But it remains to be seen whether or not it will appeal to users.
Apple Intelligence on the new iPhone 16 series looks very promising: it can perform tasks you would associate with generative AI, aiding in productivity and creativity, within a tightly-controlled ecosystem that includes security measures to protect user privacy.
But with generative AI limited to a small segment of mostly high-end smartphones – Samsung's new Galaxy S and Z lines and Google's Pixel 9 series – it may take a while for consumers to appreciate what the technology can do for them.
Still, Apple has the tools to help the generative AI crusade gain traction. “Apple used its marketing genius and power of storytelling to drive the 'generative AI message' home to the average consumer,” Nabila Popal, a senior research director at the International Data Corporation, told The National.
True AI integration goes beyond enhancing existing features
Morey Haber,
BeyondTrust
“This is a long-term play for Apple, and while we may not see the bigger impact immediately, Apple Intelligence will eventually change the smartphone user experience completely, like with the first iPhone.”
Apple's rather belated entrance into generative AI comes after OpenAI's ChatGPT took off early last year. After its meteoric rise, Apple could have opted to develop and release something on last year's iPhone 15, but it stuck to its strategy of waiting out and studying the market before finally making a move with Apple Intelligence this year.
Generative AI
It was only a matter of time before generative AI came to smartphones. Samsung started it with the Galaxy S24, extending it to the Galaxy Z foldables. Google followed suit with the Pixel 9 last month. Now it's Apple's turn.
“It is precisely the new services related to AI that have aroused the most enthusiasm among consumers,” said Hani Abuagla, a senior market analyst at Dubai-based investment firm XTB Mena.
“Although it is not yet expected to be able to match other major tools, such as ChatGPT, with its new releases Apple will seek to demonstrate that it will also be a major player in generative AI.”
The generative AI-powered mobile market is projected to rise more than four times to capture an 18 per cent market share of the overall smartphone industry this year, the IDC said in a report last month.
Singapore-based research firm Canalys has a close prediction of 16 per cent this year – a figure expected to jump to 54 per cent of the market by 2028, when smartphone shipments are projected to pass 1.2 billion units.
For Apple to move the needle on how generative AI is perceived by consumers, it would have to raise awareness, said Nicole Peng, senior vice president at Canalys.
“The majority of consumers right now don't know what AI can do for them,” she told The National in Cupertino.
Apple's influence on the market may also convince developers to work more closely with them. The potential for the company to spruce up the technology, as well as its allure, may be a big opportunity for app makers.
“Developers should adopt [Apple Intelligence] as it is native to Apple's apps,” especially as the company has a huge install base for certain widely used services, Ms Peng said.
Software over hardware?
In the past, smartphone makers used to entice consumers with hardware upgrades, most notably with the camera, a tool that has become omnipresent and is a key selling point to users.
With the latest shift towards generative AI, will consumer preferences shift towards the software aspects of a device?
“The days of smartphone makers solely touting megapixel counts and processor speeds are over. Now, it's about how intelligently a device can enhance your life,” Andreas Hassellof, chief executive of Dubai-based technology firm Ombori, told The National.
Sid Bhatia, regional vice president at New York-based AI company Dataiku, argues that smartphone makers need to strike the right balance between hardware and software. This may be done by creating a “symbiotic relationship where hardware enables AI's potential and AI enhances the software’s functionality”, he said.
Generative AI also provides an opportunity for smartphone original equipment manufacturers to rethink their strategies in trying to appeal to more users. There will be more hardware innovations coming in the future, but for now, AI appears to be the name of the game, experts say.
“True AI integration goes beyond enhancing existing features. The technology is about transforming user experiences in ways that are intuitive, anticipatory and contextually aware, potentially without even using a screen and icons to interface with,” Morey Haber, chief security adviser at US cyber security company BeyondTrust, told The National.
“The real question is how mobile manufacturers will balance AI advancements with the hardware evolution that has historically driven consumer decisions, legal regulations and data privacy concerns.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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.”
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
