Magazine Articles

February 19 2025

Balancing Ambition and Operational Readiness: Northvolt’s Case and Its Implications for Financial Decision-Makers

Rapid expansion exposes hidden operational risks.
Integration mastery secures sustainable growth.
Bankers: manage complexity to ensure success.

In today’s dynamic business environment, even well-resourced companies can face unforeseen challenges that lead to dramatic failures. The recent collapse of Northvolt—a once-promising electric-vehicle battery manufacturer—serves as a powerful case study on the risks associated with unchecked ambition and aggressive expansion. Although Northvolt appeared to have all the ingredients for success, its downfall underscores a critical lesson: the importance of mastering operational complexities and bridging knowledge gaps before scaling up.

Northvolt entered the market at a time when electric vehicles were experiencing robust growth. With the sector buoyed by strong market fundamentals, the company secured an impressive $50 billion in sales orders and attracted $15 billion in startup funding from prominent investors such as Goldman Sachs and Volkswagen. The leadership team, comprising former Tesla executives Peter Carlsson and Paolo Cerruti, brought significant expertise in managing global supply chains. Moreover, strategic partnerships with top-tier suppliers from Japan, South Korea, and China further enhanced its technological prowess.

Sweden, with its rich tradition of high educational standards and robust labor policies, provided Northvolt with a diverse and highly skilled workforce. At its peak, the company employed nearly 7,000 professionals from over 100 countries, supported by access to abundant renewable hydropower and proximity to critical mining resources. These factors painted a picture of a company well-positioned to lead the charge in a rapidly growing industry.

Despite these advantages, Northvolt’s ambitious plans to expand quickly—including proposals to build new facilities in Canada and Germany—proved to be its undoing. A Financial Times investigation revealed a startling reality: Northvolt’s primary battery plant in Skellefteå was operating at less than 1% of its intended capacity. This underperformance created a cascade of challenges. Sales projections fell short, contracts were not fulfilled, and cash reserves dwindled at an alarming rate.

At the core of Northvolt’s struggles was its inability to integrate a complex network of suppliers. The company’s supply chain comprised world-leading firms from China, Japan, and South Korea—each a leader in its own right. However, these partners had little history of collaboration with one another, resulting in a disjointed operation. Differences in technology, manufacturing practices, and even language barriers created a formidable challenge that Northvolt was unprepared to overcome. The failure to synchronize these diverse elements illustrates a broader truth: capital and technical know-how are not sufficient on their own. Instead, success hinges on the tacit, hard-earned knowledge that enables teams to work seamlessly together.

This challenge can be likened to an orchestra attempting to perform without sufficient rehearsal. Even with a renowned conductor and top-quality instruments, the music will suffer if the ensemble has not spent adequate time perfecting its coordination. Northvolt’s experience reveals that scaling up operations without first mastering the integration of various components is a risky proposition—one that can lead to rapid and catastrophic failure.

For financial leaders, economists, and policymakers in the Arab world, Northvolt’s collapse offers several critical insights. First, the case underscores the necessity of pacing growth with an understanding of operational realities. Ambitious expansion must be supported by incremental learning and the systematic integration of diverse operational elements. In an era where financial and technological resources are abundant, the hidden challenge often lies in the effective management of intangible assets—such as team cohesion, process integration, and cross-cultural collaboration.

Second, the incident highlights the importance of a measured approach to innovation and expansion. While rapid growth can yield significant market share and investor confidence, it must be balanced with the practical realities of operational execution. The failure to do so can quickly transform early success into financial disaster, as seen with Northvolt.

Finally, Northvolt’s downfall serves as a cautionary tale for national industrial policies. The incident reinforces the need for comprehensive planning that goes beyond the mere availability of resources. Governments and corporate leaders alike must recognize the time and effort required to develop the tacit capabilities necessary for complex manufacturing and service operations. This involves a commitment to long-term learning, the fostering of collaborative relationships, and the creation of environments that support gradual, sustainable growth.

For bankers and financial decision-makers in the Arab world, these lessons are particularly relevant. The region is experiencing significant economic diversification and rapid growth in sectors such as renewable energy, technology, and advanced manufacturing. As banks and financial institutions look to fund and support these emerging industries, it is essential to understand that financial backing alone does not guarantee success. Due diligence must extend beyond balance sheets and market forecasts to include assessments of operational maturity and the readiness of management teams to handle complex integration challenges.

Recommendations for Arab Banks and Financial Leaders

In light of Northvolt’s experience, Arab banks and financial leaders should adopt a more nuanced approach when evaluating and supporting high-growth ventures. First, consider a staged investment strategy that emphasizes milestones tied to the development of operational capabilities. This approach allows for continuous assessment of a company’s ability to manage complex processes before committing to large-scale funding.

Second, it is vital to support initiatives that prioritize the development of tacit knowledge within organizations. Investment in training programs, strategic partnerships, and incremental scaling efforts can build the kind of operational resilience that is essential for long-term success. Encouraging firms to establish robust supplier networks and to foster collaborative environments will help mitigate the risks associated with rapid expansion.

Finally, maintain a vigilant focus on due diligence processes that encompass not only financial and technological assessments but also the integration and operational capabilities of the management team. In a landscape where strategic miscalculations can lead to swift collapse, understanding the underlying operational dynamics is critical. By adopting these measures, Arab banks and financial leaders can help ensure that investments drive sustainable growth and contribute to the long-term stability of the economic landscape in the region.

Northvolt’s story is not just a lesson in the pitfalls of rapid expansion; it is a call to action for all financial leaders. By carefully considering the importance of operational learning and integration, we can avoid the pitfalls of overambitious growth and lay the groundwork for enduring success.

February 19 2025

Dr. Emad Bukhamsin: A Visionary Leader among Kuwait’s Top Economic Figures in 2024

When industry insiders in Kuwait learned that Dr. Emad Bukhamsin had been chosen among the country’s top economic figures for 2024, few were surprised. His reputation for strategic foresight, tireless dedication, and genuine civic responsibility has long placed him at the forefront of the Gulf’s business landscape. Within the corridors of finance and commerce, his name resonates with a commitment to advancing Kuwait’s economic potential while upholding the traditions that have shaped his family’s legacy since the mid-twentieth century. From his leadership of Bukhamseen Group Holding Company to his philanthropic endeavors, Dr. Bukhamsin’s impact on Kuwait’s future is as profound as it is enduring.

Rooted in Tradition, Growing with Purpose

Well before daybreak, Dr. Bukhamsin often walks through an expansive orchard of 20,000 date palms—one of the largest in the country. For him, these trees are more than a business or an agricultural project. They are symbols of resilience, continuity, and shared prosperity. In many ways, they mirror his personal journey: grounded in Kuwaiti heritage and steadily branching out into diverse sectors of the national and regional economy. His approach is methodical yet visionary, an outlook he attributes partly to growing up under the guidance of his father, Jawad Ahmed Bukhamseen, who founded the Jawad Bukhamseen Commercial Corporation in 1957. This family heritage, rooted in diligence and service, paved the way for a younger generation that continues to redefine Kuwaiti enterprise.

A Pillar of Business Leadership

Today, Dr. Bukhamsin serves as Vice Chairman and Chief Executive Officer of the Bukhamseen Group Holding Company, a conglomerate acknowledged as one of the top five businesses in Kuwait. Under his direction, it has broadened its reach into finance, media, hospitality, real estate, and urban planning. Such diversification is not solely a strategic response to shifting markets; it exemplifies his broader vision of building an interconnected economy that supports sustainable development. His leadership extends further: he presides over Al Arabiya Real Estate Company, shapes the success of Gourmania International, and guides media platforms like Al Baraka Media Group and Annahar Daily Newspaper. Each of these ventures reflects Dr. Bukhamsin’s dedication to fostering innovation, forging new partnerships, and reinforcing Kuwait’s standing on the global economic stage.

Recognized among Kuwait’s Finest

The year 2024 has proven a milestone in Dr. Bukhamsin’s career. Being chosen among Kuwait’s top economic figures not only cements his standing as a major force in the region’s financial and commercial arenas but also highlights his forward-thinking approach during a period marked by economic transitions and expanding regional opportunities. His recognition is not a sudden triumph; rather, it is the culmination of decades of measured growth and strategic vision—a testament to his capacity to guide businesses through challenges while maintaining a firm commitment to the welfare of employees, partners, and stakeholders.

Shaping the Gulf’s Economic Outlook

Dr. Bukhamsin’s influence reaches well beyond corporate boardrooms. He has consistently underscored the Gulf Cooperation Council’s (GCC) ability to cope with global economic stress, citing the region’s robust infrastructure and long-range planning as pillars of stability. In various public forums, including interviews and leadership summits, he has pointed out how visionary governance across GCC states fosters an environment conducive to cross-border investments, shared development strategies, and broader economic cooperation. This perspective aligns with his conviction that leveraging common assets—be it oil wealth, strategic location, or specialized expertise—benefits the Gulf region as a whole.

Recent developments such as the planned unified tourist visa for Gulf states, set to begin in 2025, find enthusiastic support from leaders like Dr. Bukhamsin. He believes it will enhance the region’s profile as a global tourism hub, encourage private-sector collaboration, and create opportunities for infrastructure projects. By endorsing a collective economic identity for the GCC, Dr. Bukhamsin stands at the forefront of efforts that push beyond national boundaries to forge a stronger, more cohesive Gulf market.

Philanthropy and Community Advancement

Throughout his business ventures, Dr. Bukhamsin maintains a focus on giving back to the community. The belief that success is meaningful only if it fosters broader social development drives his philanthropic activities. Whether it is through educational scholarships, workforce training programs, or investments in sustainable community projects, he underlines that prosperity must be shared for it to endure. By championing causes that improve quality of life, he ensures his enterprises not only achieve financial gains but also contribute to Kuwait’s social and economic resilience.

Nurturing Global Partnerships

As the chief executive of Bukhamseen Group Holding Company, Dr. Bukhamsin has also been instrumental in welcoming international brands and forging alliances that enrich Kuwait’s standing in global markets. A recent example is his engagement with Fauchon, a storied French luxury brand. Through Gourmania International, which holds the Fauchon trademark locally, Dr. Bukhamsin and his team have enhanced Kuwait’s retail and hospitality offerings. These global partnerships reflect his commitment to raising service standards, introducing new consumer experiences, and fueling further economic activity. With every initiative, he aligns local opportunities with global best practices, ensuring that Kuwait remains open to new ideas, capital, and talent.

Balancing Tradition and Innovation

Despite his multifaceted roles, Dr. Bukhamsin’s worldview remains deeply grounded in Kuwaiti identity. He takes pride in an everyday life that also includes fatherhood, grandparenthood, and cultural pursuits such as caring for horses and collecting antiques. By cherishing family bonds and local heritage, he demonstrates that modern growth can flourish alongside respect for long-held traditions. It is a balancing act that speaks to the character of the man who walks among date palms at dawn—steadfast in commitment but keen to embrace the possibilities the future holds.

A Lasting Legacy

Earning a place among Kuwait’s top economic figures for 2024 underscores Dr. Bukhamsin’s broader contribution to the nation’s growth story. From expanding his family’s commercial foundation into one of the region’s most diversified conglomerates to championing causes that uplift communities, he has exemplified leadership that transcends short-term gains. Individuals across the business world—from veteran bankers to newly appointed chief executives—view his path as a testament to measured ambition, social consciousness, and principled leadership.

For Dr. Bukhamsin, accolades are not merely personal triumphs. They symbolize a collective success shared with teams, colleagues, and the people of Kuwait. Standing at the helm of one of the nation’s most influential business groups, he continues to shape strategies that will likely guide Kuwaiti commerce well into the future. His story serves as a strong reminder that sustainable prosperity requires both a deep sense of responsibility toward one’s heritage and an unwavering commitment to progress.

In a world where economic landscapes are rapidly evolving, Dr. Emad Bukhamsin’s balanced approach—rooted in tradition but always looking to the horizon—provides a model for visionary leadership. His recognition in 2024 as one of Kuwait’s top economic figures is more than an individual honor. It is an affirmation of the very principles he holds dear: that business success, community upliftment, and national pride can indeed go hand in hand.

75f98ad1-a07d-4c17-b649-6fa7ef60c28a_1920x1080

February 19 2025

Tariff Policies and Global Trade: Strategic Considerations for the Arab Financial Sector

Balanced tariffs drive economic growth.
Tariff shifts reshape market dynamics.
Strategic banking secures regional prosperity.

In recent years, the discourse on tariffs has taken center stage as policy makers in major economies reassess their trade policies in an increasingly interconnected global market. The debate is far from black and white. While tariffs can be a useful policy tool when applied judiciously alongside complementary domestic measures, their indiscriminate use risks causing significant harm—often more so to the domestic economy than to foreign trading partners. For bankers, economists, and business leaders in the Arab world, understanding these dynamics is crucial as global trade policies impact everything from market stability to investment flows.

At its core, tariffs are designed to protect domestic industries by imposing a tax on imported goods. This tax, in effect, raises the price of foreign products relative to local ones, potentially encouraging consumers to buy domestically produced goods. However, the economic theory behind tariffs is nuanced. Economists have long argued that while tariffs can correct market imperfections or protect nascent industries, they are inherently inefficient in a free market. By preventing the most efficient allocation of resources, tariffs introduce a distortion in trade that can lead to a net loss of welfare.

The recent proposals by prominent political figures to impose higher tariffs on imports from major economies such as China, Europe, Mexico, and Canada illustrate the risks of using tariffs as a multifaceted policy tool. In one vision, tariffs are seen as a solution capable of addressing a variety of national objectives simultaneously—from reducing trade deficits and bolstering domestic manufacturing to creating jobs and enhancing national security. Yet, the reality is that tariffs are a blunt instrument. Their impact on various sectors of the economy tends to be uneven. For instance, while some domestic manufacturers may benefit from reduced foreign competition, industries that rely on imported inputs or that export a significant portion of their production may suffer adverse effects.

This uneven impact is particularly relevant for the global economy at large. The costs imposed by tariffs do not remain confined within national borders. In an era of deep economic interdependence, protectionist measures tend to reverberate across the global supply chain. Historically, when tariffs have been used as a tool for coercing trade partners into concessions, the result has often been an escalation in trade disputes rather than the desired outcomes. For policymakers in the Arab world—regions that rely heavily on trade financing, investment inflows, and international market stability—this lesson is particularly pertinent.

There is, however, a more measured approach to tariffs that has yielded success in several key instances. When tariffs are implemented as part of a broader policy framework that includes investments in domestic innovation, infrastructure, and industrial upgrading, they can serve as a temporary shield for vulnerable sectors. Historical examples abound: the United States in the late nineteenth century, the rapid industrialization of South Korea and Taiwan in the post-1960s era, and even the economic rise of post-1990s China. In each of these cases, tariffs played a supporting role within a well-designed industrial policy that went far beyond mere protectionism.

A similar rationale underpins the use of tariffs in support of emerging green policies. The European Union’s approach to carbon tariffs, for instance, aims to level the playing field for domestic industries that face stringent environmental standards. These tariffs are not an end in themselves but part of a broader strategy to incentivize cleaner production methods and reduce carbon emissions. The key takeaway for bankers and economic policymakers in the Arab world is that tariffs, when aligned with targeted domestic policies, may contribute to long-term strategic goals. Conversely, tariffs applied in isolation—without an accompanying agenda for domestic renewal—are likely to yield net negative effects, with the domestic economy absorbing most of the cost.

The implications of these findings are significant for the Arab financial sector. Arab economies, many of which are closely tied to global energy markets and international trade, must pay close attention to shifts in tariff policies in major economies. Changes in the U.S. or European tariff regimes can affect export revenues, investment flows, and even the stability of regional financial markets. Furthermore, as many Arab countries strive to diversify their economies and reduce dependency on a narrow range of exports, the lessons from past tariff policies emphasize the importance of complementing any protectionist measures with robust domestic policies aimed at fostering innovation and competitiveness.

For decision-makers in the banking and finance sector, the focus should be on understanding not only the direct effects of tariffs on trade volumes but also the broader economic repercussions. When tariffs are used as a blunt instrument, the result is often a distortion in market efficiency—a development that can lead to reduced investment in critical sectors and a subsequent slowdown in economic growth. As international trade policies evolve, financial institutions in the Arab world must remain vigilant. They need to assess how changes in tariff regimes can influence credit risks, alter market sentiments, and shift investment flows across borders.

In addition, banks and financial institutions should consider the role of tariffs in the context of geopolitical developments. Trade policy is increasingly becoming a tool of statecraft, with implications for regional security and economic stability. For the Arab world, where economic and geopolitical factors are deeply intertwined, the potential for escalated trade disputes among major economies poses both a challenge and an opportunity. On one hand, the risks of trade disruptions must be managed; on the other, there exists the potential to capitalize on shifts in global trade patterns by enhancing local capacities and diversifying market relationships.

Recommendations for Arab Banks and Bankers

In light of these considerations, Arab banks and financial leaders are advised to adopt a proactive approach. Firstly, maintain a keen awareness of global tariff trends and analyze their potential impact on regional trade and investment. This entails strengthening risk management frameworks and enhancing scenario planning capabilities to better prepare for possible market shifts. Secondly, collaborate with policy makers to develop and support domestic strategies that complement any protective measures. Such strategies should focus on stimulating innovation, supporting key industries, and improving overall market competitiveness. Lastly, diversify international partnerships to reduce reliance on any single market. By expanding trade relationships and investment networks, Arab financial institutions can better insulate themselves from the adverse effects of tariff-induced disruptions.

By adopting these strategies, Arab banks and their leadership can not only mitigate the risks associated with global tariff policies but also seize emerging opportunities in an ever-changing economic landscape. The lessons from past experiences underscore a critical point: tariffs, when used in isolation, are unlikely to deliver the broad economic benefits that some policymakers envision. Instead, a balanced approach—one that aligns tariff policies with a comprehensive domestic agenda—offers the best path forward for achieving long-term stability and growth in both the local and global economies.

February 19 2025

DeepSeek – China Invasion of AI Big Tech Market

By Dr. Soha Maad

Introduction

The rise of DeepSeek, the Chinese artificial intelligence (AI) company, has deep implications on the global BigTech (Big Technologies) market. It has also deep geopolitical implications on the global markets.

This article overviews the main uses and features of DeepSeek and compares it to ChatGPT. The article analyses the penetration of DeepSeek to the AI global market, its market growth, its importance and uses in banking and finance, and its impact on the global market. The article concludes with lessons to learn from the rise of DeepSeek and its future.

About DeepSeek

DeepSeek is a Chinese artificial intelligence company that develops open-source large language models (LLMs). Founded in 2023 by Liang Wenfeng and based in Hangzhou, Zhejiang, it is owned and funded by the Chinese hedge fund High-Flyer. DeepSeek’s Artificial Intelligence (AI) models, including DeepSeek-R1, are designed to provide responses comparable to other contemporary large language models like OpenAI’s GPT-4.

DeepSeek has gained significant attention for its cost-effective AI development, claiming to have trained its models at a fraction of the cost compared to other major AI companies. The company has also made its generative AI algorithms, models, and training details open-source, allowing for free use, modification, and viewing.

However, DeepSeek’s compliance with Chinese government censorship policies and its data collection practices have raised concerns over privacy and information control. Despite these concerns, DeepSeek has quickly become a major player in the AI industry, surpassing ChatGPT as the most-downloaded free app on the iOS App Store in the United States.

DeepSeek Main Features

DeepSeek offers a range of impressive features that make it a standout AI tool. The Mixture-of-Experts (MoE) Architecture innovative design activates only a small portion of the model’s parameters at any given time, reducing the computing power required and enhancing task-specific precision.

DeepSeek’s models, such as DeepSeek-V3 and DeepSeek-R1, are open-source, allowing for free use, modification, and viewing. This transparency encourages personalization and wider adoption.

The DeepSeek-R1 model excels in handling complex questions, particularly those requiring careful thought or mathematical reasoning.

DeepSeek’s models have been benchmarked to perform on par with or better than leading AI models like GPT-4o and Claude 3.5 Sonnet.

DeepSeek can be used for a wide range of applications, including content creation, data analysis, coding, and more.

These features make DeepSeek a powerful and versatile AI tool, capable of rivalling some of the biggest names in the industry.

How to Use DeepSeek

Using DeepSeek can be quite straightforward for beginner and advanced users. You can use DeepSeek through its web interface or by downloading the software to your device. For web access, simply visit the DeepSeek website and create an account if you don’t already have one. To run DeepSeek locally on your computer for better data privacy and security, you can download and install LM Studio or Ollama, open the installed application and search for “DeepSeek R1 Distill (Qwen 7B)”, and download the model and load it to start using DeepSeek locally.

DeepSeek offers various features such as AI-generated content, data analysis, and automation tools. You can use it for tasks like writing essays, debugging code, analyzing data, and brainstorming creative ideas.

There are several tutorials available online that can guide you through using DeepSeek effectively. DeepSeek can also be used to build a profitable online business. You can create AI-generated videos, optimize content for Search Engine Optimization SEO, and automate workflows to earn passive income.

DeepSeek Versus Chatgpt

DeepSeek and ChatGPT are two prominent AI models, each with its own strengths and weaknesses:

Performance and Capabilities

– DeepSeek: Known for its cost efficiency and innovative “mix-of-experts” architecture, DeepSeek excels in providing high-definition results with reduced latency and inferencing costs. It is particularly strong in handling complex questions and advanced reasoning tasks.

– ChatGPT: Developed by OpenAI, ChatGPT offers a wide range of features, including the ability to generate AI images, interact with various tools, and provide multimodal interfaces for tasks like image analysis. It is known for its rapid responses and polished creative outputs.

Cost Efficiency

– DeepSeek: DeepSeek’s models are developed at a fraction of the cost compared to competitors. For example, the DeepSeek-R1 model was developed with an investment of approximately $6 million, significantly lower than competitors.

– ChatGPT: While ChatGPT offers a free version, access to its more advanced features requires a subscription. Its API pricing is also higher compared to DeepSeek.

Security and Privacy

– DeepSeek: DeepSeek supports local hosting and free API access, making it appealing to developers and privacy-conscious users. However, it has been found to be more susceptible to jailbreaks and security vulnerabilities.

– ChatGPT: ChatGPT has more robust security measures in place, with a lower success rate for jailbreak attempts compared to DeepSeek.

Use Cases

– DeepSeek: Ideal for developers and privacy-focused users who need cost-effective AI solutions. It is also suitable for tasks that require advanced reasoning and deeper thinking.

– ChatGPT: Best suited for professionals seeking advanced premium features, such as polished video generation and enhanced web search. It is also a good choice for quick prototyping and creative tasks.

Both DeepSeek and ChatGPT have their unique advantages. DeepSeek stands out for its cost efficiency and privacy features, while ChatGPT excels in creative outputs and security. The choice between the two depends on your specific needs and priorities.

DeepSeek In Banking And Finance Sectors

DeepSeek has the potential to revolutionize the banking and finance sectors with its advanced AI capabilities in various ways:

· Data Analysis and Insights: DeepSeek’s AI models can analyze large and complex datasets in real-time, providing valuable insights for financial institutions. This helps in identifying trends, making predictions, and optimizing decision-making processes.

· Risk Management: DeepSeek’s AI can enhance risk management by detecting anomalies and potential fraud. Its advanced reasoning capabilities allow for more accurate risk assessments and proactive measures to mitigate risks.

· Customer Service: DeepSeek’s AI-powered chatbots and virtual assistants can improve customer service by providing quick and accurate responses to customer inquiries. This enhances customer satisfaction and reduces the workload on human agents.

· Investment Strategies: DeepSeek’s AI can assist in developing and optimizing investment strategies by analyzing market data, predicting market movements, and identifying profitable opportunities. This can lead to better investment decisions and higher returns.

· Personalized Financial Services: DeepSeek’s AI can offer personalized financial services by analyzing individual customer data and providing tailored recommendations. This includes personalized investment advice, loan offers, and financial planning.

· Operational Efficiency: DeepSeek’s AI can automate various back-office processes, reducing operational costs and improving efficiency. This includes tasks such as data entry, compliance checks, and transaction processing.

DeepSeek’s innovative approach and advanced AI capabilities are poised to transform the banking and finance sectors, making them more efficient, secure, and customer-centric.

DeepSeek Penetration To The Ai Global Market

DeepSeek has made significant waves in the global AI market with its innovative approaches and cost-effective solutions. DeepSeek’s AI models, such as the DeepSeek-R1, have been developed at a fraction of the cost compared to other major AI companies. This cost efficiency has allowed them to offer competitive solutions and challenge established players in the market. DeepSeek’s “mix-of-experts” approach has provided users with high-definition results while reducing latency and inferencing costs. This innovative method has set them apart from conventional large language models.

The launch of DeepSeek-R1 in January 2025 caused a significant decline in market valuations across the AI value chain, including model developers and infrastructure providers. This disruption highlights the competitive threat posed by DeepSeek to established AI companies. DeepSeek’s emergence has challenged assumptions about US dominance in AI and raised concerns about the market valuations of companies like Nvidia and Meta. The company’s success has prompted a re-evaluation of the global AI landscape. DeepSeek’s ability to rival top players in the AI industry with fewer resources has positioned them as a formidable competitor. Their approach has garnered attention and respect from industry experts and investors alike. DeepSeek’s rapid rise and innovative strategies have undoubtedly made a significant impact on the global AI market.

DeepSeek Market Growth

DeepSeek has experienced remarkable growth in the AI market, rapidly establishing itself as a significant player. The main drivers of DeepSeek market growth are:

· User Adoption: DeepSeek has seen explosive user growth, with over 10 million downloads recorded by early January 2025. The app has become the top-rated application on both the App Store and Play Store.

· Global Reach: DeepSeek has achieved impressive rankings in multiple countries, securing the top position in 57 countries, including major markets like the United States, United Kingdom, and Australia. It has also gained a strong foothold in emerging markets such as India, Brazil, and Nigeria.

· Cost Efficiency: DeepSeek’s development cost for its third iteration (DeepSeek-V3) was around $5.5 million, significantly lower than competitors like OpenAI’s GPT-4, which reportedly cost nearly $100 million to develop. This cost efficiency has contributed to its rapid adoption and market penetration.

· Technological Innovation: DeepSeek’s innovative approach, including its “mix-of-experts” architecture, has allowed it to deliver high-performance AI models at a lower cost .

· Market Impact: The launch of DeepSeek’s AI models has caused significant market disruptions, leading to declines in market valuations of established AI companies. Despite this, DeepSeek’s success has prompted a reevaluation of the global AI landscape.

DeepSeek’s rapid rise and innovative strategies have positioned it as a major competitor in the AI market.

DeepSeek Global Impact

DeepSeek has had a profound impact on the global AI landscape, shaking up markets and challenging established norms.

DeepSeek’s innovative AI models have caused significant disruptions in global markets. The company’s cost-efficient development approach has challenged the assumption that state-of-the-art AI requires massive budgets and top-tier hardware. The rise of DeepSeek has led to substantial financial losses for some established companies. For example, Nvidia experienced a $600 billion reduction in its market value due to decreased demand for high-performance AI chips. DeepSeek’s AI models have gained widespread adoption, with the company’s app becoming the top-rated free application on Apple’s App Store in multiple countries. This global reach has positioned DeepSeek as a major player in the AI industry. DeepSeek’s AI models, such as the DeepSeek-R1, were developed at a fraction of the cost compared to competitors like OpenAI. This cost efficiency has made AI technology more accessible to businesses of all sizes. DeepSeek’s success has raised concerns about the geopolitical balance of power in AI development. The company’s ties to China have led to scrutiny and potential regulatory challenges, particularly in the United States. DeepSeek’s open-source approach encourages collaboration and innovation within the AI community. This openness has accelerated advancements in AI technology and provided opportunities for researchers and developers to build upon and enhance the model.

DeepSeek’s rise marks a major shift in the AI industry, proving that innovation can come from unexpected places. Its impact on AI development, market competition, and the global economy is undeniable.

Learning from DeepSeek Best Practice

DeepSeek has implemented several best practices that have contributed to its success in the AI industry. Key strategies that can be learned from DeepSeek include:

Iterative Dataset Refinement: DeepSeek follows an iterative refinement strategy for data curation, which includes deduplication, filtering, and remixing. This process ensures high-quality training data by removing repeated or low-quality content and balancing the dataset with diverse and inclusive content.

Debiasing Techniques: DeepSeek places a strong emphasis on identifying and removing biases from its training data. This involves detailed manual assessments and adjustments to ensure that the model performs well across different cultural and regional contexts.

Open Source Approach: DeepSeek’s commitment to open-source models allows for transparency, collaboration, and wider adoption. This approach encourages developers to freely access, modify, and contribute to the model’s codebase.

Efficient Fine-Tuning: DeepSeek utilizes techniques like Low-Rank Adaptation (LoRA) to fine-tune its models efficiently with minimal resources. This method allows for faster training and reduced memory usage, making it accessible even on slower GPUs.

Technological Innovation: DeepSeek’s “mix-of-experts” architecture and reinforcement learning approach have set new standards for AI performance. These innovations enable the model to deliver high-definition results while reducing latency and inferencing costs.

By adopting these best practices, other AI developers and researchers can enhance the quality, efficiency, and inclusivity of their models.

Future of DeepSeek

The future of DeepSeek looks promising, but it also faces several challenges and uncertainties. DeepSeek’s innovative approach, including its “mix-of-experts” architecture and cost-efficient model development, positions it well for continued technological advancements. The company is likely to keep pushing the boundaries of AI capabilities. DeepSeek’s disruptive entry into the AI market has already caused significant shifts in market valuations and competitive dynamics. Its ability to deliver high-performance AI models at a lower cost will continue to challenge established players and drive further innovation. DeepSeek’s success has raised concerns about the geopolitical balance of power in AI development. The company’s ties to China have led to scrutiny and potential regulatory challenges, particularly in the United States.

The future of DeepSeek may be influenced by regulatory actions, such as potential bans or restrictions on its use in certain countries. For example, there are discussions in the US Congress about banning DeepSeek due to national security concerns.

DeepSeek’s open-source nature encourages collaboration and wider adoption. This approach could lead to more rapid advancements in AI technology and greater accessibility for developers and researchers.

As with any AI technology, DeepSeek will need to address ethical and security concerns, including data privacy, potential misuse, and compliance with international regulations.

DeepSeek’s future will likely be shaped by its ability to navigate these challenges while continuing to innovate and deliver value to users.

December 27 2024

WUAB Forum – Sustainable Bank: The Role of Internal Audit, Risk Management, and Compliance in Ensuring Prosperity and Stability

The World Union of Arab Bankers (WUAB), in collaboration with the Union of Arab Banks (UAB), PricewaterhouseCoopers (PwC), the Federation of Egyptian Banks (FEB), and the Institute of Internal Auditors – Egypt, successfully hosted its highly anticipated Annual Internal Audit Forum on November 20–21, 2024. Held at the esteemed Four Seasons Hotel Cairo – Nile Plaza, the forum attracted over 200 professionals from leading banks in the Arab region and beyond, making it a truly international platform for knowledge exchange and professional development.

A Prestigious Gathering of Banking Experts

The two-day event brought together a distinguished assembly of banking executives, internal auditors, compliance officers, and risk management specialists. More than 25 renowned speakers from various financial institutions, consultancy firms, and regulatory bodies delivered insightful presentations and participated in dynamic panel discussions. This convergence of expertise created a fertile ground for discussing the evolving challenges and opportunities in the banking sector, particularly in internal audit, compliance, and risk management.

Attendees included high-ranking officials from Arab and international banks, representatives from regulatory authorities, and professionals from leading organizations specializing in auditing and risk management. The forum also welcomed participants from emerging markets, reflecting the event’s commitment to fostering a global perspective.

A Robust Agenda of Key Topics

The forum’s agenda addressed some of the most pressing issues facing the banking industry today, focusing on how internal audit, compliance, and risk management can drive prosperity and stability in an ever-changing financial landscape. Key topics included:

Building a Future-Ready Internal Audit Function: Speakers explored how banks can modernize their internal audit functions to address emerging risks and leverage technology to enhance efficiency.
Bank’s Culture and the Role of Internal Auditors: Discussions emphasized the importance of cultivating a strong risk-aware culture and the pivotal role internal auditors play in fostering ethical and transparent practices.
Strengthening Internal Audit’s Role with Key Stakeholders: Panels highlighted strategies for enhancing collaboration between internal auditors and other critical stakeholders, such as boards of directors and executive management.
Combined Assurance Model: This session delved into the integration of various assurance functions to provide a cohesive and comprehensive approach to risk management.
Risk Management and Compliance in the Digital Banking Era: Experts shared insights into managing risks associated with digital transformation, including cybersecurity and regulatory compliance.
Leveraging Emerging Technologies for Internal Audit Efficiency: The forum explored how technologies like artificial intelligence, data analytics, and automation are revolutionizing the internal audit landscape.
Internal Audit Role in ESG and Sustainability Auditing: Participants discussed the growing importance of environmental, social, and governance (ESG) factors and how internal audit functions can ensure accountability in sustainability initiatives.
The Future of Governance, Risk, and Compliance (GRC): Thought leaders provided a forward-looking perspective on the evolution of GRC practices in response to global challenges and regulatory shifts.
Strategic Navigators in Uncharted Waters: This session examined the transformative role of internal audit across varying levels of risk maturity, offering strategies for navigating complex risk environments.
Internal Audit Quality Assurance and Continuous Improvements: Speakers presented best practices for maintaining and enhancing the quality of internal audit processes.
Building Digital Trust: Auditing Cybersecurity and Data Privacy: With digital threats on the rise, this session emphasized the importance of building trust through robust Cybersecurity and data privacy auditing.

A Platform for Knowledge Sharing and Networking

The forum’s structure facilitated not only the dissemination of cutting-edge knowledge but also meaningful interactions among participants. Each session was designed to provide actionable insights, with case studies and real-world examples underscoring the practical relevance of the discussions. Attendees had the opportunity to engage directly with speakers, fostering an interactive and collaborative learning environment.

Networking opportunities were abundant, with breaks, lunches, and evening receptions allowing participants to connect with peers and industry leaders. These interactions underscored the forum’s role as a premier platform for professionals to exchange ideas, share experiences, and forge valuable relationships.

Overview of the Forum’s Objectives and Impact

As the banking sector continues to navigate a rapidly changing environment, the need for robust internal audit, risk management, and compliance practices has never been greater. This forum, titled “Future-Ready Banking: Auditing, Risk, and Compliance for a New Era,” aimed to equip participants with the tools and knowledge necessary to strengthen governance and resilience within their organizations.

Through a meticulously crafted program, the forum addressed the critical challenges faced by financial institutions, such as adapting to technological advancements, meeting evolving regulatory requirements, and responding to societal demands for greater accountability. Participants gained a deeper understanding of how to integrate innovative practices into their operations, ensuring their institutions remain competitive and compliant in a complex global landscape.

The collaborative efforts of WUAB, FEB, PwC, and other partners ensured that the forum maintained the highest standards of excellence. By bringing together leading voices in the industry, the event provided a unique platform for attendees to gain fresh perspectives and develop actionable strategies to address their institutions’ most pressing challenges.

Insights into the Future of Banking

A recurring theme throughout the forum was the transformative potential of emerging technologies. Speakers emphasized the need for financial institutions to embrace innovation to remain competitive. From harnessing the power of artificial intelligence to implementing Blockchain solutions, the discussions underscored the importance of staying ahead of technological trends.

The forum also highlighted the growing significance of ESG and sustainability in the banking sector. As stakeholders increasingly prioritize environmental and social responsibility, internal audit functions must evolve to ensure comprehensive ESG oversight. This focus on sustainability reflects a broader shift in the industry towards creating long-term value for all stakeholders.

Building Resilience through Collaboration

One of the forum’s key takeaways was the importance of collaboration among internal auditors, compliance officers, risk managers, and other stakeholders. By fostering a culture of openness and cooperation, financial institutions can better navigate the complexities of today’s regulatory and risk environments. The forum’s emphasis on combined assurance models and stakeholder engagement provided attendees with actionable strategies for achieving this goal.

Conclusion: A Resounding Success

The WUAB Annual Internal Audit Forum was a resounding success, reaffirming its position as a cornerstone event for professionals in the banking sector. By addressing the critical issues facing financial institutions and providing a platform for knowledge exchange, the forum played a pivotal role in shaping the future of internal audit, compliance, and risk management.

For attendees, the event was more than just a learning opportunity—it was an inspiring call to action. Equipped with fresh insights and practical tools, participants left the forum better prepared to tackle the challenges of an ever-changing financial landscape. As the banking industry continues to evolve, events like this forum will remain essential for fostering innovation, resilience, and excellence.

Through its collaborative approach and forward-looking agenda, the WUAB Annual Internal Audit Forum set a high standard for industry events, ensuring its legacy as a catalyst for progress and transformation in the banking sector.

Link to Event: https://wuab.org/event/sustainable-bank-the-role-of-internal-audit-risk-management-compliance-in-ensuring-prosperity-and-stability/

December 27 2024

Shaping a Transparent Future: The AACI’s Mission to Elevate Ethical Banking

Interview with Mr. Mike Masoud, Anti-Corruption Expert at the American Anti-Corruption Institute (AACI)

1. Overview of The American Anti-Corruption Institute (AACI)

The American Anti-Corruption Institute (AACI) is a leading global organization dedicated to empowering board members, executive management, and managers—collectively referred to as decision-makers—with the cutting-edge anti-corruption knowledge and skills necessary to prevent and combat corruption and fraud. Established with a mission to equip decision-makers across various sectors, including banking, with the tools to effectively identify, manage, and mitigate corruption risks, The AACI offers a range of anti-corruption certifications. We aim to ensure that the tone at the top is proper and proactive in safeguarding organizations from the damaging effects of corruption. The Institute’s flagship programs include the Certified Anti- Corruption Manager (CACM), the Certified Anti-Corruption Fellow (CACF), the Certified Anti- Corruption Expert Manager (CACEM), and the Certified Anti-Corruption Entity (CACE), among others. These certifications serve to cultivate an informed, ethical, and proactive workforce capable of making sound decisions in the fight against corruption.

2. What does the recent Memorandum of Understanding (MOU) signed between The AACTI, the Union of Arab Banks (UAB), and Tomorrow’s Advice (TA) mean for the future of anti-corruption efforts in the MENA region?

The MOU signed on August 22, 2024, represents a significant step forward in our collective efforts to institutionalize anti-corruption initiatives across the banking sector in the MENA region. This partnership with the Union of Arab Banks (UAB) and Tomorrow’s Advice (TA) aims to advance anti-corruption learning and certification programs for UAB members. By promoting the culture of anti-corruption and disseminating knowledge about The AACI’s Ten Principles of Fighting Corruption, we seek to empower the banking sector with the necessary tools to prevent corruption proactively.

The MOU underscores the importance of collaboration between industry leaders, governance bodies, and institutions in creating a transparent, ethical banking environment. This partnership will enhance the integrity of the sector, fostering a stronger, more resilient financial system that aligns with global standards of anti-corruption and integrity.

3. How does this partnership with UAB and TA align with The AACI’s mission to promote integrity and transparency in the banking sector?

Our mission at The AACI has always been to empower decision-makers with the knowledge and skills to proactively prevent corruption and fraud. This partnership with the UAB is a natural extension of that mission, as the Union represents 360 member banks and financial institutions across the Arab League member states, Europe, and Turkey.

Through the MOU, we are working together to promote transparency, independence, and competence across the banking sector. By implementing anti-corruption certification programs and disseminating The AACI’s Ten Principles of Fighting Corruption, we aim to bolster the ethical foundations of the banking industry and ensure that it remains a trusted institution for sustainable economic growth and stability.

4. Why is the banking sector critical in the fight against corruption, particularly in the MENA region?

The banking sector plays a pivotal role in economic stability and growth, which makes it a critical player in the fight against corruption. In the MENA region, where corruption risks can be heightened due to complex political and economic dynamics, banks have a unique responsibility to safeguard the integrity of financial transactions and prevent the flow of illicit funds.

By fostering a culture of integrity, anti-corruption, and compliance with the relevant laws, rules, and regulations, we ensure that financial institutions remain accountable to their stakeholders, customers, and regulators. This partnership with the UAB helps to institutionalize anti-corruption practices within banking operations, enhancing both regional and global efforts to combat financial crimes such as money laundering and terrorism financing.

5. How do The AACI’s anti-corruption certification programs, like the CACM, play a role in promoting integrity within financial institutions?

The Certified Anti-Corruption Manager (CACM) and other certifications of The AACI are designed to equip professionals in the banking sector with the knowledge and tools to tackle corruption effectively. By addressing the CACM’s core areas of anti-corruption, internal control, governance, anti-money laundering, auditing and accounting for decision makers, Blockchain and AI, the United Nations Convention Against Corruption, the OECD Anti-Bribery Convention, Financial Actions Task Recommendations, and risk management, these programs empower managers and executives to implement robust anti-corruption frameworks in their organizations.

With the increasing emphasis on anti-corruption compliance from both regulators and the public, certifications like the CACM provide professionals with the skills necessary to meet and exceed these expectations. This is particularly important in regions like MENA, where the regulatory landscape is evolving and financial institutions must stay ahead of emerging risks and compliance requirements.

6. What impact do you foresee from this partnership on the sustainable development 4% goals (SDGs) and the broader economic stability in the MENA region?

This partnership has a direct alignment with the UN’s Sustainable Development Goals (SDGs), particularly Goal 16: Peace, Justice, and Strong Institutions. By promoting anti-corruption learning, integrity, and transparency within the banking sector, we are contributing to the creation of more stable, accountable, and transparent financial systems in the MENA region.

The long-term impact of this initiative will be felt not just in the banking sector but in the broader economy as well. A transparent, ethical financial system fosters investor confidence, supports sustainable economic growth, and strengthens the region’s ability to attract foreign investment. Ultimately, this partnership represents a vital contribution to both regional and global efforts to foster economic stability and prosperity.

7. How does the banking sector’s anti-corruption strategy align with national efforts to combat corruption?

The banking sector is a critical player in national anti-corruption efforts due to its role as a cornerstone of the economy and its responsibility to ensure the integrity of financial transactions. For an anti-corruption strategy to be effective, it must align with the broader national anti- corruption strategy.

At The AACI, we emphasize that a bank’s anti-corruption strategy should be designed, implemented, and evaluated in a way that supports not only the bank’s internal goals but also those of the broader banking sector and the country. This alignment fosters collaboration, ensures consistency in combating corruption across sectors, and strengthens national resilience against corruption. The AACT’s certification programs, including the CACM, equip banking professionals with the expertise to develop and manage strategies that contribute to this unified effort.

8. Why is addressing conflicts of interest essential in the fight against corruption within the banking industry?

Conflicts of interest are a corruption risk in the banking sector and can significantly undermine its integrity if left unchecked. They may arise in various forms, such as unethical decision- making or favoritism, which can ultimately lead to corrupt practices.

The AACI’s anti-corruption certification programs, especially the CACM, place significant emphasis on understanding the nature of conflicts of interest, identifying their sources, and implementing measures to mitigate their risks. By educating banking professionals on these issues, we ensure they are equipped to recognize and address conflicts of interest before they escalate into corruption. This proactive approach strengthens governance and fosters trust among stakeholders.

9. What role does institutional integrity play in fostering an ethical banking environment?

Institutional integrity refers to an organization’s adherence to the Ten Principles of Fighting Corruption and Standards on Fighting Corruption (SFCs) in its interactions with stakeholders, distinguishing it from the concept of individual integrity. For banks, institutional integrity is fundamental in building trust, maintaining a solid reputation, and ensuring sustainable operations.

The AACI champions the importance of institutional integrity through initiatives like the Certified Anti-Corruption Entity (CACE) program. This certification demonstrates an entity’s commitment to combating corruption and fraud while fostering a culture of transparency and accountability. Moreover, banks with more CACM-certified professionals are better positioned to enhance their institutional integrity, as these professionals bring expertise in designing and implementing effective anti-corruption measures.

10. How can whistleblowing strengthen a bank’s anti-corruption strategy?

Whistleblowing is one of the most effective methods for detecting fraud and corruption. Research shows that over 50% of fraud and corruption cases are uncovered through tips provided by employees, customers, or other stakeholders.

An effective anti-corruption strategy for banks must include whistleblowing as an integral component. The AACI’s CACM certification dedicates a comprehensive unit to the topic of whistleblowing, covering its nature, methods, and policy design. By implementing robust whistleblowing mechanisms, banks can deter, prevent, and detect corruption more effectively while promoting a culture of accountability and transparency. Encouraging and protecting whistleblowers ensures that concerns are raised without fear of retaliation, strengthening the organization’s defenses against corruption.

Conclusion

The signing of this MOU marks a turning point in our efforts to combat corruption and promote transparency within the banking sector. By joining forces with the Union of Arab Banks and Tomorrow’s Advice, The AACI is committed to ensuring that anti-corruption principles are firmly embedded in the fabric of the banking industry, not just in MENA but globally. Through initiatives like the CACM certification and the dissemination of best practices, we are empowering professionals and organizations to take proactive steps in safeguarding the future of our financial systems.

Press Release – The American Anti-Corruption Institute (AACI) and the Union of Arab Banks (UAB) sign a Memorandum of Understanding to Promote Anti-Corruption and Integrity

The American Anti-Corruption Institute (AACI) proudly announces the signing of a Memorandum of Understanding (MOU) with the Union of Arab Banks (UAB) and Tomorrow’s Advice Global s.a.l. offshore Lebanon (TA Global) alongside Tomorrow’s Advice s.a.r.l. (TA). This significant agreement was formalized on August 22, 2024, during the “Annual Forum of Combatting Money Laundering and Terrorism Financing: The Repercussions of Cash Economy on the Banking Sector” at the Phoenicia Hotel Beirut, Lebanon. The conference was held under the auspices of the Acting Governor of the Central Bank of Lebanon and Head of the Special Investigation Commission in Lebanon, Dr. Wassim Mansouri.

The MOU was signed by Dr. Wissam H. Fattouh, Secretary General of the UAB and Mr. Mike Masoud, Senior Director of the Middle East and Africa at The AACI, , and Mrs. Gina J. Chammas, CACM, Founding Partner of TA Global and TA, and Senior Adviser of The AACI in MENA. The signing ceremony was attended by Retired Brigadier-General PSC, Hassan Jouni, PhD, CACM, Advisor of The AACI in the MENA region.

The forum and the ceremony were attended by esteemed guests, CACMs members of The AACI, and professionals in related fields, highlighting the importance and far-reaching impact of this partnership.

The MOU outlines a collaborative effort to advance anti-corruption learning and certification programs for members and stakeholders of the Union of Arab Banks and the banking sector under the UAB’s jurisdiction. The parties have committed to a partnership that seeks to bolster the integrity of the banking sector by equipping its members with essential anti-corruption knowledge and tools. The Union of Arab Banks shall promote the culture of anti-corruption and disseminate knowledge about the Ten Principles of Fighting Corruption promulgated by The American Anti-Corruption Institute (AACT) to its members throughout its territory.

This MOU represents a pivotal step forward in the ongoing efforts to institutionalize corruption prevention, integrity, and transparency in the banking sector in particular, and in sustainable economic development in general.

About The American Anti-Corruption Institute (AACI): The AACI (theaaci.net) is a pioneering organization dedicated to empowering executive management and governance bodies with the knowledge and skills necessary to prevent fraud and corruption proactively. Through its premier anti-corruption certification programs for individuals and entities, including the Certified Anti-Corruption Manager (CACM) and Certified Anti-Corruption Entity (CACE), The AACI fosters institutional change and assesses corruption risks, guided by its Ten Principles and Standards on Fighting Corruption, and promoting transparency, independence, competence, and integrity. The AACI emphasizes corruption prevention as the cornerstone of effective corruption control.

About Tomorrow’s Advice Global s.a.l. offshore Lebanon and Tomorrow’s Advice s.a.r.l.: TA Global and TA are leading management and financial consultancy firms, specializing in strategic advice, development, sustainability, internal control, compliance, governance, and anti-corruption initiatives, particularly within the MENA region.

December 27 2024

Transparency, Innovation, and Resilience: Inside Banque de l’Habitat’s Journey

Chairman Antoine Habib reveals how the bank maintains credibility and secures funding in challenging times.

How do you evaluate Banque de l’Habitat’s role in fulfilling its commitments despite economic challenges?

Banque de l’Habitat has always been a model of commitment, staying true to the principle that “a promise is a debt of honor.” Since I were elected in 2022 to lead this institution, I have maintained a strategic goal of facilitating access to decent housing for families with low and middle incomes. Despite the economic difficulties, we explored various funding sources, both local and international, in collaboration with Arab, European, and international organizations.

Although initial efforts faced skepticism, we tackled challenges with determination and resilience. Banque de l’Habitat not only honored its commitments but also successfully dispelled doubts, solidifying its position as a reliable institution capable of overcoming crises. The bank has proven that challenges can be transformed into opportunities for growth and development, reinforcing its credibility and flexibility in effectively supporting the Lebanese community.

Can you share the details of Banque de l’Habitat’s collaboration with the Arab Fund for Economic and Social Development?

In 2023, at the invitation of Engineer Nabil Al-Jisr, Chairman of the Council for Development and Reconstruction (CDR), we participated in a meeting with a delegation from the Arab Fund for Economic and Social Development at the council’s headquarters. During this meeting, we presented a comprehensive report on the financial and administrative status of Banque de l’Habitat and renewed our request to reactivate a loan granted in 2019, which remains pending.

This meeting was characterized by transparency and positivity, allowing us to emphasize our strict adherence to financial management standards and reaffirm that Banque de l’Habitat has always honored its financial obligations to Arab funds and other institutions. The Arab Fund delegation also evaluated the bank’s assets, noting that all our branches across Lebanon are fully owned, which is a strategic advantage that strengthens the bank’s stability and sustainability.

It is important to acknowledge the visionary leadership of former General Manager Mr. Joseph Sassine, who spearheaded the acquisition of all bank branches. This achievement facilitated a thorough financial due diligence process, which confirmed the bank’s robust financial standing. Under Mr. Sassine’s leadership, successive boards meticulously fulfilled all financial obligations, including the repayment of borrowed capital and interest owed to donors. This financial discipline was pivotal in securing the Arab Fund loan in 2019.

Today, the current administration remains committed to the same prudent approach, guided by strong governance policies that ensure stability and sustainable growth for the bank.

What were the outcomes of the official mission to Kuwait and your meeting with the Arab Fund for Economic and Social Development?

During an official mission to Kuwait, we met with representatives of the Arab Fund for Economic and Social Development. The primary objective of the meeting was to finalize the disbursement of the second installment of the loan, valued at USD 16.3 million, aimed at supporting families with low and middle incomes. The Arab Fund confirmed that the installment would be transferred to our account upon receiving the official request, which was completed by the end of November 2024.

Adapting to the current economic conditions, the loan currency was converted from Lebanese Lira to US Dollars and will be disbursed over ten equal installments within five years, at an interest rate of 6%. This funding is a cornerstone of financial stability and allows Banque de l’Habitat to continue supporting Lebanese citizens seeking to own homes, reaffirming the bank’s ability to uphold its mission even amidst crises.

How has the new electronic platform simplified and streamlined the loan application process?

We launched an innovative electronic platform designed to simplify administrative procedures and make the loan application process more accessible for borrowers. Through this platform, Lebanese citizens, regardless of location, can submit their applications online with ease, receive immediate feedback on eligibility, and finalize procedures at the nearest bank branch. This initiative reflects our commitment to offering more efficient and transparent services that align with the evolving needs of our clients.

Are the current financial resources sufficient to meet citizens’ needs?

While current funding sources are limited, they are primarily allocated to support the purchase, construction, or renovation of housing in rural areas outside the capital, Beirut. This support aims to reduce rural-to-urban migration and encourage Lebanese citizens to remain in their hometowns, in line with the vision of late Presidents Salim Al-Hoss and Elias Sarkis, who established Banque de l’Habitat in 1977. Their vision sought to preserve Lebanon’s social fabric and promote local stability.

However, the available funds, totaling USD 165 million, are insufficient to meet the growing demand. To bridge this gap, we requested additional financing from international institutions, such as the Abu Dhabi Fund for Development and the Kuwait Fund for Arab Economic Development. The Lebanese Council of Ministers tasked the Council for Development and Reconstruction (CDR) with negotiating these loans to secure the necessary resources, ensuring sustained support for citizens and fostering sustainable development.

What strategies does Banque de l’Habitat employ to ensure the sustainability of new funding sources, both local and international?

Banque de l’Habitat follows a comprehensive and diversified strategy to secure sustainable financial resources by enhancing funding at the local, regional, and international levels. Domestically, the bank relies on certificates of deposit as a key funding source, supported by legislative initiatives such as Decree No. 9812, which mandates insurance companies to deposit guarantees with the bank. Additionally, Minister of Labor Mr. Mustafa Bayram raised the ceiling for certificates of deposit for individuals and companies, strengthening the bank’s capacity to support low- and middle-income families.

Internationally, we have built strategic partnerships with reputable organizations, including the U.S. Agency for International Development (USAID), UN Habitat, the European Bank for Reconstruction and Development, and the French Development Agency. These partnerships expand funding opportunities under favorable terms, enabling the bank to effectively support Lebanese families and contribute to economic and social stability in the country.

What are the main obstacles facing borrowers, and how can they be addressed?

One of the main challenges lies in administrative complexities associated with real estate records, as the required documentation often hinders borrowers’ ability to access loans. We call upon the Ministry of Finance to take decisive steps to resolve these issues and simplify procedures. Achieving joint cooperation among all relevant stakeholders is essential to overcoming these challenges and enabling Lebanese citizens to secure adequate housing that meets their needs and enhances their social stability.

What does the Excellence Award received by Banque de l’Habitat signify for its position among Arab banking institutions?

Receiving the Excellence Award from the World Union of Arab Bankers is a prestigious honor that reflects recognition of our ongoing efforts. This award, earned among more than 300 Arab banks and financial institutions, underscores our ability to fulfill our commitments and achieve our goals despite economic challenges, further enhancing our leadership position in the Arab banking sector.

What sets Banque de l’Habitat apart from other Lebanese banks, particularly in housing loans?

Banque de l’Habitat distinguishes itself through its exclusive specialization in housing loans, a sector that many Lebanese commercial banks have abandoned due to the current crises.

Furthermore, we have taken proactive steps to ensure transparency and integrity in all our operations. In collaboration with Ms. Joelle Fawaz, Chairwoman of the Legislative and Consultation Committee, we adopted the use of cross-border accounts to ensure that loan funds are transferred in US Dollars through accounts outside Lebanon. This measure enhances the transparency of our operations and ensures the highest levels of financial security for both borrowers and funding institutions, reaffirming our commitment to providing reliable and sustainable solutions that meet long-term needs.

December 27 2024

Arab Banks Awards & Commendations of Excellence 2024: Honoring Merit and Leadership in Banking

A Legacy of Excellence

In the dynamic and historic city of Cairo, the “Arab Banks Awards & Commendations of Excellence 2024” took place on a distinguished October evening, celebrating its tenth consecutive year. Organized by the World Union of Arab Bankers (WUAB), this prestigious event honored exceptional achievements and groundbreaking innovations within the Arab banking and financial sector. More than an annual ceremony, it stands as a cornerstone tradition, reflecting the unwavering commitment to excellence and the drive for innovation that define the Arab banking industry.

An Assembly of Distinguished Leaders

The prestigious awards ceremony took place at the renowned Four Seasons Hotel Cairo At Nile Plaza, a venue that brought together distinguished leaders from the Arab banking sector, prominent figures, and officials representing regulatory institutions and international bodies. More than a celebration, the event served as a strategic platform for fostering dialogue, exchanging insights, and cultivating long-lasting partnerships within the banking community.

The Selection Process: Celebrating the Best

Central to the event’s prestige is its rigorous selection process. A distinguished committee of economists, banking professionals, and the adept research department of the Union of Arab Banks and the World Union of Arab Bankers undertook the daunting task of evaluating nominees. This meticulous process, based on stringent criteria, ensures that the awards reflect genuine excellence and innovation in banking and financial practices, leadership, and strategy.

Spotlight on Achievements and Innovations

Each award was carefully curated to recognize different facets of excellence, ranging from innovative product development to sustainable banking practices and exemplary leadership in challenging economic climates. The ceremony highlighted individual success stories, providing a platform for sharing innovative ideas and strategies that have positively impacted the Arab banking sector.

Profiles of Excellence: Stories of Leaders and Innovators

Special segments of the ceremony were dedicated to profiling the achievements of individual banking leaders and institutions. These profiles served not only as recognition but also as inspirational narratives for the audience. They highlighted the resilience, ingenuity, and foresight of leaders who have navigated complex challenges to steer their institutions towards growth and success.

The World Union of Arab Bankers: A Unifying Force

Established in 2006 in Casablanca, the World Union of Arab Bankers has grown into a formidable force, unifying over 500 members from the Arab banking sector. This organization, through events like these awards, plays a pivotal role in promoting excellence, facilitating knowledge exchange, and shaping the future of banking in the Arab world.

The Banking Executive Magazine: A Decade of Illuminating Success

‘The Banking Executive’, as the English-language magazine emerging from the World Union of Arab banks, has been a beacon of insight and information. For over a decade, it has consistently highlighted the triumphs and advancements of the Arab banking sector, offering its readers a window into the dynamic world of Arab finance.

A Legacy and a Vision for the Future

The “Arab Banks Awards & Commendations of Excellence 2023” event is more than a ceremony; it is a reaffirmation of the Arab banking sector’s commitment to excellence, innovation, and leadership. As the event concludes, it leaves behind a legacy of inspiration and a vision for the future, motivating banking and financial professionals to continue pushing the boundaries of what is possible in the world of finance.

Dr. Sharif Farouk, Minister of Supply and Internal Trade of the Arab Republic of Egypt

During The Arab Awards and Commendations of Excellence ceremony, Dr. Sherif Farouk was honored with the “Arab Banking Excellence and Achievement Award for 2024” by the World Union of Arab Bankers (WUAB). In his acceptance speech, Dr. Farouk expressed his gratitude to the organizers for this prestigious recognition and praised the significance of the event in fostering collaboration and excellence across the Arab banking sector.

Dr. Farouk highlighted the critical role of transparency and oversight in strengthening the financial and commercial sectors. He emphasized that enhancing internal controls and governance practices is essential for ensuring institutional integrity and operational efficiency. In this context, he underscored the importance of internal auditing as a cornerstone for promoting accountability and achieving organizational success.

The Minister of Supply and Internal Trade also addressed the necessity of sharing best practices and expertise among Arab nations, noting that such exchanges are pivotal to achieving sustainable economic growth. He stressed that collaboration across borders creates opportunities to develop more effective oversight mechanisms, which are vital for adapting to the evolving global financial landscape.

Dr. Farouk showcased the ongoing efforts by the Ministry of Supply and Internal Trade to improve monitoring systems and upgrade infrastructure. These initiatives, he noted, are aligned with achieving the United Nations Sustainable Development Goals (SDGs). He emphasized that such improvements in governance not only enhance institutional performance but also contribute to broader economic development.

Concluding his remarks, Dr. Farouk highlighted the importance of events like this one in creating a platform for exchanging ideas and visions among industry experts, banking leaders, and policymakers. He noted that fostering dialogue and collaboration at the regional and international levels is key to strengthening the financial and auditing sectors. This, he explained, equips institutions with the tools needed to address future challenges effectively while advancing shared economic goals.

Dr. Farouk’s address reflected a clear vision for enhancing transparency, strengthening oversight practices, and leveraging knowledge-sharing to drive sustainable development and regional cooperation in the financial sector.

Dr. Joseph Torbey, Chairman, World Union of Arab Bankers (WUAB)

Dr. Joseph Torbey, in his opening remarks, warmly welcomed the distinguished attendees to The Arab Awards and Commendations of Excellence ceremony, held in Egypt, a country rich in history and culture. He extended his gratitude to participants from across the Arab world and the members of the World Union of Arab Bankers (WUAB) for their presence and participation in this prestigious celebration of excellence.

Dr. Torbey highlighted the significance of the event as an opportunity to honor visionary leaders and institutions in the Arab banking sector that have demonstrated resilience, financial strength, and exceptional contributions to the industry. He emphasized that these institutions remain a cornerstone of Arab economies, providing stability and growth amidst ongoing challenges.

Reflecting on the future, Dr. Torbey addressed the importance of preparing for a rapidly changing economic and technological landscape. He stressed that the Arab banking sector’s progress depends on developing skilled human capital, as capable individuals form the backbone of any successful organization. This, he stated, requires continuous investment in enhancing both professional and personal skills, as human resources are instrumental in achieving institutional goals and driving innovation.

He further underscored the evolving role of artificial intelligence (AI) in the global banking sector, noting its transformative potential in improving decision-making processes and operational efficiency. However, Dr. Torbey emphasized that AI must complement—not replace—human intelligence. While AI offers speed, precision, and advanced analytical capabilities, human creativity, emotional intelligence, and ethical guidance remain irreplaceable in steering technology toward serving humanity’s broader goals.

Dr. Torbey urged Arab financial leaders and decision-makers to embrace digital transformation, modernize operations, and integrate AI into their institutions to remain competitive globally. Drawing on international examples, he referenced initiatives aimed at reducing bureaucratic inefficiencies and fostering smart leadership focused on problem-solving rather than traditional credentials. He emphasized the need for visionary and adaptable leaders to navigate the challenges posed by rapid technological advancements.

In conclusion, Dr. Torbey expressed pride in the achievements of the honorees celebrated during The Arab Awards and Commendations of Excellence. He praised their dedication, innovation, and leadership in advancing the Arab banking industry. Dr. Torbey encouraged them to continue striving for excellence, contributing to the progress of Arab economies, and setting new standards of success for future generations.

The evening, he noted, was a testament to the spirit of leadership and distinction that defines the Arab financial sector, with the World Union of Arab Bankers playing a pivotal role in fostering such achievements.

Dr. Wissam Fattouh, Secretary General of the World Union of Arab Bankers (WUAB) and Union of Arab Banks (UAB)

At The Arab Awards and Commendations of Excellence ceremony, Dr. Wissam Fattouh, Secretary General of the World Union of Arab Bankers (WUAB) and Union of Arab Banks (UAB), delivered a speech that underscored the critical role of leadership, resilience, and innovation in the Arab banking sector. Dr. Fattouh began by extending his gratitude to Egypt’s leadership, government, and people for hosting the event, acknowledging their unwavering support for Arab unity and progress. He noted, “Cairo, this timeless city, has always been a meeting point for ideas, collaboration, and excellence.”

Addressing the current challenges in the Arab region, Dr. Fattouh spoke candidly about the difficult times many countries are enduring, describing them as “a period of immense difficulty, where tragedy has touched both stone and man.” Despite these hardships, he emphasized the need for collective resolve and collaboration, urging the Arab banking community to unite under a shared vision to navigate uncertainty. “Our response to these challenges,” he asserted, “must be grounded in dialogue, innovation, and a clear focus on sustainable development.”

Dr. Fattouh highlighted the World Union of Arab Bankers’ mission to strengthen and modernize the Arab banking sector, emphasizing the importance of equipping institutions with advanced tools and expertise to thrive in a rapidly evolving global economy. He stated, “We remain steadfast in our efforts to elevate the Arab banking profession, ensuring it meets international standards and contributes to the prosperity of our economies.” He further pointed out the necessity of investing in human capital, calling it “the cornerstone of progress, as no technological advancement can replace the vision, creativity, and leadership of talented individuals.”

The speech also celebrated the event as a platform to honor leaders and institutions that have made significant contributions to the Arab financial sector. Dr. Fattouh praised the honorees, describing them as “pioneers of excellence who have demonstrated an unwavering commitment to innovation, resilience, and leadership in advancing the Arab banking industry.” He commended their ability to “drive meaningful change, transform their institutions, and serve as role models for future generations.”

Highlighting the evolving role of technology, Dr. Fattouh called for a balanced approach to innovation, where technological advancements and human expertise coexist harmoniously. “While technology, particularly in the realms of digital transformation and artificial intelligence, offers us tools to enhance efficiency and analysis, it is human ingenuity that will guide these tools toward creating lasting value for our societies.”

Concluding his speech, Dr. Fattouh reaffirmed the WUAB’s commitment to fostering collaboration and recognizing achievements across the Arab world. He stated, “The path forward lies in leadership, innovation, and unity. Together, we have the power to overcome challenges, build resilient institutions, and pave the way for a brighter future for our economies, our people, and our region.”

Dr. Fattouh’s address was a call to action for the Arab banking community, urging leaders to embrace change, foster innovation, and work collectively toward sustainable growth. His words resonated with the audience, serving as both a reflection on current realities and a vision for a stronger, more unified Arab financial sector.

Link to Event: https://wuab.org/arab-banks-awards-commendations-of-excellence-2024/

December 27 2024

Cop 16 in Riyadh – A New Outlook and a Water Focus

BY DR SOHA MAAD

Introduction

The 16th Conference of the Parties (COP 16) took place in Riyadh in Saudi Arabia, from 2 to 13 December 2024. The event was part of the United Nations Convention to Combat Desertification (UNCCD) and aimed to address global challenges like land degradation, drought, and desertification. COP 16 was notable for being the largest meeting in the history of the UNCCD and the first to be held in the Middle East. The conference brought together representatives from 197 countries to collaborate on solutions for rehabilitating degraded land and building resilience against drought.

COP 16 was a game-changer, marking a renewed global commitment to accelerate investment and action to restore land and boost drought resilience.

This article overviews COP 16. The overview covers the agenda, key participants, the water focus, challenges faced, the impact, climate diplomacy at COP 16, and the technology focus. The article concludes with COPS future outlook. The future of COPs holds promise for driving meaningful and transformative action on climate change. With continued ambition, collaboration, and innovation, these conferences will play a crucial role in shaping a sustainable and resilient future.

Cop 16 at a Glance

COP 16 key topics included sustainable land management, artificial intelligence, and the social and economic impacts of land degradation. It was an important and crucial event for global environmental efforts. The agenda for COP 16 in Riyadh was quite comprehensive and innovative. Key activities included:

Negotiation Track

This included ministerial dialogues that involved discussions on drought resilience, finance, and migration. It also included critical decisions that focused on advancing global land and drought resilience through political declarations.

Action Agenda

This included thematic days. Each day focused on a specific theme to drive action and collaboration as follows:

Land day: to address the role of healthy land in combating climate change, creating jobs, and reducing poverty.
Agri-food system day: for promoting sustainable farming for resilient crops and ecosystem protection.
Governance day: for inclusive land governance.
People’s day: to address the role of youth, women, and civil society in decision-making.
Science, Technology, and Innovation Day: for exploring innovative solutions for land health.
Resilience day: to formulate policies and approaches for climate resilience.
Finance day: for funding innovations for land and drought resilience.

Additional Events

There were also additional events including:

Saudi Green Initiative Forum: Running alongside COP 16, focusing on global climate challenges under the theme “Action is in Our Nature”.
Green Zone: Engaging scientists, businesses, Non-Government Organizations NGOs, and the public in collaborative efforts.

Cop 16 Key Participants

COP 16 in Riyadh attracted a diverse array of key participants, including:

Government Representatives: from 196 Countries and the European Union.
United Nations Officials
Private Sector Leaders: including businesses and financial Institutions engaging in collaborative projects and innovative solutions for land restoration and drought resilience
NGOs and Civil Society
Experts and Academics
Host Country Representatives from Saudi Arabian Officials

These participants worked together to drive global action and collaboration towards sustainable land management and drought resilience.

The Water Focus at Cop 16

Water scarcity was a significant focus at COP 16 in Riyadh. The conference highlighted the critical role of water in combating desertification and land degradation. Key points addressed in the water focus included:

Key Themes and Initiatives

Water Scarcity and Desertification: Addressing the link between water scarcity and land degradation, emphasizing the need for sustainable water management practices.
Private Sector Involvement: Exploring the role of the private sector in innovative programs focused on water and food security. This includes partnerships between businesses, governments, and NGOs to implement best practices and collaborative solutions.
National Water Strategy: Saudi Arabia’s National Water Strategy aims to preserve water resources and promote sustainability through recycling projects and other initiatives.

Side Events and Discussions

Addressing Water Scarcity in the Arab World: A side event focusing on the role of the private sector in combating desertification through innovative water management programs.
Ministerial Dialogues: Discussions on drought resilience and the importance of water in achieving land degradation neutrality targets.

The conference aimed to foster international collaboration and innovative solutions to tackle water scarcity and enhance drought resilience. It was a crucial step towards ensuring sustainable land and water management for future generations.

Cop 16 Challenges

COP 16 in Riyadh faced several challenges as it aims to address global land degradation, desertification, and drought. Key challenges include:

Global Coordination and Cooperation

Bringing together 197 parties, including 196 countries and the European Union, requires significant coordination and cooperation to ensure that all parties are aligned and committed to the goals of the conference.

Funding and Investment

Securing adequate funding and investment for land restoration and drought resilience initiatives is a major hurdle. Mobilizing financial resources from both public and private sectors is essential for implementing effective solutions.

Implementation of Agreements

Translating agreements and commitments made at COP 16 into actionable and measurable steps is crucial. Ensuring that countries follow through on their pledges and implement sustainable practices on the ground is a significant challenge.

Addressing Water Scarcity

Water scarcity is a critical issue that intersects with land degradation and desertification. Developing and implementing innovative water management solutions to address this challenge is essential for achieving the conference’s goals.

Engaging Stakeholders

Involving a wide range of stakeholders, including governments, businesses, NGOs, and local communities, is necessary for comprehensive and effective solutions. Ensuring that all voices are heard and that there is broad-based support for initiatives is a complex task.

Climate Change Impacts

The impacts of climate change exacerbate land degradation, desertification, and drought. Addressing these interconnected issues requires integrated approaches that consider the broader context of climate change.

Monitoring and Evaluation

Establishing robust monitoring and evaluation mechanisms to track progress and assess the effectiveness of implemented measures is essential. This helps in making informed decisions and adjusting strategies as needed.

Despite these challenges, COP 16 represented a significant opportunity to drive global action and collaboration towards sustainable land management and drought resilience.

Cop 16 Impact

COP 16 in Riyadh made a significant impact on global efforts to combat desertification, land degradation, and drought. Key impacts include:

Renewed Global Commitment: The conference aimed to renew global commitment to land restoration and drought resilience. By bringing together representatives from 197 countries, it fostered international collaboration and set ambitious goals for environmental sustainability.
Innovative Solutions: COP 16 emphasized innovative solutions, including the use of artificial intelligence and sustainable land management practices. These solutions can drive practical and implementable actions to address urgent global crises.
Private Sector Engagement: The conference highlighted the role of the private sector in environmental efforts. Engaging businesses, financial institutions, and NGOs in collaborative projects is crucial for achieving sustainable land management and combating desertification.
Policy and Governance: High-level ministerial sessions and thematic days focused on critical issues such as drought resilience, financing, and governance. These discussions produced actionable policies and strengthened governance frameworks for land restoration.
Social and Economic Benefits: Restoring degraded land and building resilience against drought had significant social and economic benefits. This includes creating jobs, reducing poverty, and improving food security, which are essential for sustainable development.
Regional Impact: As the first UNCCD COP held in the Middle East and North Africa region, COP 16 brought attention to the unique challenges faced by this region. It addressed these challenges through regional cooperation and tailored solutions.

Climate Diplomacy at Cop 16

Climate diplomacy at COP 16 in Riyadh played a crucial role in addressing global environmental challenges in various respects as follows:

Multilateral Collaboration: COP 16 fostered international cooperation to combat desertification, land degradation, and drought. This multilateral approach is essential for achieving global environmental goals.

High-Level Ministerial Dialogues: The conference featured high-level ministerial dialogues on critical issues such as drought resilience, finance, and migration. These dialogues aimed to produce actionable policies and strengthen governance frameworks for land restoration.

Action-Oriented Agenda: COP 16 introduced a dual-track approach, combining formal negotiations with an action-oriented agenda.

Private Sector Engagement: Engaging the private sector was a key component of climate diplomacy at COP 16. Businesses and financial institutions collaborated on innovative projects enhancing land and drought resilience.

Regional Focus: As the first UNCCD COP held in the Middle East and North Africa region, COP 16 highlights the unique challenges faced by this region.

Funding and Investment

Securing adequate funding and investment for land restoration and drought resilience initiatives was a major focus of climate diplomacy at COP 16.

Geopolitics of Cops 16 Riyadh

The geopolitics of COP 16 in Riyadh are quite significant, given its location and the global attention it has gathered. Key geopolitics involved included:

Regional Significance: COP 16 was the first UNCCD conference held in the Middle East and North Africa (MENA) region.

Saudi Arabia’s Role: As the host country, Saudi Arabia positioned itself as a leader in environmental sustainability and climate action. The conference provided an opportunity for Saudi Arabia to showcase its initiatives, such as the Saudi Green Initiative (SGI) and the Riyadh Global Drought Resilience Initiative.

Global Collaboration: The conference brought together representatives from 197 countries, fostering international cooperation to address global environmental challenges. This multilateral approach is crucial for achieving sustainable land management and drought resilience.

High-Profile Participation: COP 16 features high-profile participants, including heads of state, ministers, and leaders from international organizations.

Economic and Political Implications: The outcomes of COP 16 made significant economic and political implications, particularly for countries in the MENA region.

Innovation and Technology: The conference emphasized the role of innovation and technology in addressing environmental challenges. This included the use of artificial intelligence, sustainable land management practices, and other innovative solutions to enhance land and drought resilience.

COP 16 in Riyadh was a pivotal event that highlighted the geopolitical importance of addressing environmental issues in the MENA region and beyond.

Technology Focus at Cop 16

Technology was a major focus at COP 16 in Riyadh, with several innovative approaches being highlighted to address land degradation, desertification, and drought. Key technological focuses included:

Remote Sensing and Drones: These tools enable precise monitoring of land health, providing actionable data for targeted restoration efforts and resource optimization.
Artificial Intelligence (AI): AI is being leveraged to analyze large datasets, predict environmental changes, and develop solutions for sustainable land management.
Carbon Capture and Hydrogen Production: Saudi Arabia is focusing on technologies such as carbon capture and hydrogen production as part of its circular carbon economy initiative. These efforts aim to balance climate tech investment with the country’s oil interests. The Science, Technology, and Innovation Day at COP 16 presented innovative solutions for land health and resilience, showcasing cutting-edge technologies and scientific advancements.
Sustainable Farming Technologies: Promoting sustainable farming practices for resilient crops and ecosystem protection was another key focus, with an emphasis on technology-driven solutions.

These technological initiatives have the potential to drive significant progress in combating desertification and enhancing drought resilience.

Cops Future Outlook

The future outlook of the UNCCD (United Nations Convention to Combat Desertification) after COP 16 in Riyadh is promising and ambitious in various respects along these directions:

Accelerating global efforts to restore degraded land by 2030
Enhancing drought resilience
Contributing to Sustainable Development Goals (SDGs)
Stressing Innovation and Technology role: Technology will play a crucial role in future UNCCD initiatives. Leveraging advancements in remote sensing, artificial intelligence, and sustainable farming practices will drive progress in combating desertification and land degradation.
Global Collaboration
People-Centered Approach: This involves engaging local communities, indigenous peoples, and youth in decision-making processes and ensuring that their needs and perspectives are considered.

The future outlook of the UNCCD after COP 16 will entail renewed commitment, innovation, and collaboration to address pressing environmental issues and promote sustainable land management.

In the context of environmental and climate change policies, COP is likely to be shaped by several key trends and priorities including:

Increased Ambition and Commitments: Future COPs will likely see countries setting more ambitious targets for reducing greenhouse gas emissions, enhancing climate resilience, and promoting sustainable development.
Focus on Implementation and Accountability: There will be a stronger emphasis on the implementation of commitments made at previous COPs.
Climate Finance: This involves increasing funding for mitigation and adaptation efforts, especially for developing countries. Innovative financial instruments and private sector engagement will play a key role in closing the climate finance gap.
Technology and Innovation: Future COPs will continue to highlight the importance of technology and innovation in addressing climate change. This includes the development and deployment of clean energy technologies, sustainable land management practices, and climate-smart agriculture.
Inclusive and Equitable Solutions: Ensuring that climate policies and actions are inclusive and equitable will be a priority.
Nature-Based Solutions: There will be a growing focus on nature-based solutions, such as reforestation, ecosystem restoration, and biodiversity conservation, as effective strategies for mitigating climate change and enhancing resilience.
Addressing Emerging Issues: New and emerging issues, such as climate-induced migration, loss and damage, and the intersection of climate change with health and security, will gain greater attention and require innovative solutions.

December 27 2024

Beneath the Surface: Uncovering Hidden Weaknesses in Today’s Global Economy

Global growth is fragile and uneven.
Hidden risks threaten economic stability worldwide.
Arab banks must act strategically and swiftly.

The global economy is presenting a paradox. On the surface, things seem to be looking up. Inflation has been easing, and overall growth is starting to gain momentum after a period of significant turbulence. Yet, beneath this seemingly optimistic exterior lie inconsistencies, weaknesses, and tension-filled dynamics that could disrupt progress. The situation demands a deeper analysis, especially for economists, bankers, and business leaders who seek to understand the broader picture and its implications for financial strategies in the Arab world.

Recent data from the Brookings-Financial Times Tracking Indexes for the Global Economic Recovery reveal that while global growth appears to be accelerating, it remains frail and uneven. The United States stands out as the most prominent driver, demonstrating robust economic performance, while many other regions are either stagnating or decelerating. The disparity among global economies has highlighted the unevenness of this recovery and raised questions about long-term stability.

In the United States, conditions are improving. Unemployment is at a low level, inflation continues to decline, and domestic demand remains strong. The labor market is experiencing substantial wage growth, and stock markets, anticipating healthy corporate earnings, are holding steady. All these factors paint a picture of sustained economic strength. Even the US Federal Reserve has the flexibility to continue cautiously reducing interest rates. However, the underlying narrative is not as rosy as it seems. Consumer confidence in the US remains tepid, reflecting dissatisfaction with economic conditions and uncertainty about future prospects. Moreover, the ballooning public debt poses a significant risk to economic stability, especially as political agendas appear set to exacerbate this issue.

Across the Atlantic, the eurozone struggles to find its footing. Germany, the region’s economic powerhouse, is battling high energy costs, aging industrial infrastructure, and a loss of export competitiveness, particularly against China. The challenges are compounded by stagnant productivity and rising fiscal pressures. France, too, is mired in economic uncertainty, with fiscal imbalances threatening to escalate into broader instability. The European Central Bank (ECB) has had to resort to further rate cuts to combat lackluster growth and declining inflation, but the dilemma is apparent: services inflation and wage growth remain persistently high, adding to the complexity of the economic situation.

The United Kingdom provides a mixed picture. While it has gained some economic traction, largely due to monetary policy easing, business investment is shrinking, productivity growth is lackluster, and fiscal risks cast a shadow over future prospects. Japan, on the other hand, has diverged from the trend. Its central bank has opted to raise interest rates in an attempt to support the yen and counter rising inflation. Yet, this move is unlikely to boost household consumption in a meaningful way.

China, a long-standing engine of global economic growth, is showing clear signs of strain. Despite new monetary and fiscal measures intended to stimulate the real estate and equity markets, deflationary pressures persist. Weak domestic demand and a battered private-sector confidence have undermined both household consumption and business investment. A lack of clear and consistent policy direction from the government has exacerbated these issues. The road ahead for China is fraught with difficulty, and turning the tide will require significant, well-targeted fiscal policy initiatives, such as income support for households and strategic tax reforms. At the same time, structural reforms aimed at boosting productivity and business confidence will be indispensable, but these will not be easy to implement.

Amid this uneven global landscape, India stands out as a beacon of strong economic performance. Infrastructure investment has been robust, and the rapid expansion of high-value-added manufacturing and services sectors has driven significant growth. Despite challenges such as high inflation and a weak agricultural sector, India’s financial markets have benefited from prudent fiscal and monetary policies. The country is also poised to gain from shifting global supply chains as major economies seek to reduce dependence on China. Meanwhile, nearby Indonesia is emerging as a stable performer, attracting foreign investors with a solid policy framework.

The situation in Latin America remains challenging. While Brazil and Mexico are poised for healthy growth, other countries in the region are grappling with budget deficits, unsustainable debt levels, exchange-rate volatility, and reduced demand from China. In contrast, Russia, though relatively resilient in the face of Western sanctions, is facing a grim long-term outlook due to its ongoing conflict with Ukraine.

Despite these complexities, the current period of relative global calm offers an opportunity for policymakers to address critical obstacles. Managing public finances responsibly, boosting household and business confidence, and creating policy frameworks that encourage productivity growth must become priorities. Concrete measures are needed to improve the functionality of labor, product, and financial markets.

Implications for Arab Banks and Economists: Crossing the Shifting Landscape

The complexities of the global economic environment have significant implications for financial institutions and policymakers in the Arab world. The region’s banks must brace themselves for volatility, while simultaneously seizing opportunities where they exist. The following recommendations can guide Arab bankers and CEOs as they navigate these economic currents:

Strengthen Risk Management Frameworks: With uncertainties still looming large, Arab banks must prioritize robust risk assessment and management practices. Monitoring international debt levels and capital flows, as well as being prepared for sudden economic shifts, is essential.
Invest in Productivity-Enhancing Technologies: As global economies grapple with productivity challenges, Arab financial institutions can get ahead by investing in technologies that enhance efficiency and service delivery. This could set a precedent for long-term growth and resilience.
Diversify Investment Portfolios: Given the instability in some markets, diversification becomes even more critical. Exploring investments in high-performing economies like India and stable markets such as Indonesia could yield strong returns.
Engage in Policy Advocacy: Collaborate with governments and policymakers to implement measures that promote business confidence and financial stability. Clear communication channels between the banking sector and policymakers can ensure that structural reforms have the desired effect.
Monitor Geopolitical Developments: The global economic outlook is intricately linked to geopolitical tensions. Arab banks should keep a close watch on global trade dynamics and international policy shifts to make informed strategic decisions.
Embrace Opportunities from Shifting Supply Chains: With major economies diversifying supply chains away from China, the Arab region could position itself as a strategic trade and investment hub. Capitalizing on this trend will require forward-thinking strategies and regional collaboration.

By staying vigilant and proactive, Arab banks and financial leaders can not only weather the uncertainties but also drive growth and innovation in a challenging global economy. The time to act is now, with a focus on sustainable, strategic, and forward-looking initiatives that safeguard long-term stability.

Magazine Articles

Rapid expansion exposes hidden operational risks.

Integration mastery secures sustainable growth.

Bankers: manage complexity to ensure success.

Recommendations for Arab Banks and Financial Leaders

Rooted in Tradition, Growing with Purpose

A Pillar of Business Leadership

Recognized among Kuwait’s Finest

Shaping the Gulf’s Economic Outlook

Philanthropy and Community Advancement

Nurturing Global Partnerships

Balancing Tradition and Innovation

A Lasting Legacy

Balanced tariffs drive economic growth.

Tariff shifts reshape market dynamics.

Strategic banking secures regional prosperity.

Recommendations for Arab Banks and Bankers

By Dr. Soha Maad

Introduction

About DeepSeek

DeepSeek Main Features

How to Use DeepSeek

DeepSeek Versus Chatgpt

Performance and Capabilities

Cost Efficiency

Security and Privacy

Use Cases

DeepSeek In Banking And Finance Sectors

DeepSeek Penetration To The Ai Global Market

DeepSeek Market Growth

DeepSeek Global Impact

Learning from DeepSeek Best Practice

Future of DeepSeek

A Prestigious Gathering of Banking Experts

A Robust Agenda of Key Topics

A Platform for Knowledge Sharing and Networking

Overview of the Forum’s Objectives and Impact

Insights into the Future of Banking

Building Resilience through Collaboration

Conclusion: A Resounding Success

Link to Event: https://wuab.org/event/sustainable-bank-the-role-of-internal-audit-risk-management-compliance-in-ensuring-prosperity-and-stability/

Interview with Mr. Mike Masoud, Anti-Corruption Expert at the American Anti-Corruption Institute (AACI)

1. Overview of The American Anti-Corruption Institute (AACI)

2. What does the recent Memorandum of Understanding (MOU) signed between The AACTI, the Union of Arab Banks (UAB), and Tomorrow’s Advice (TA) mean for the future of anti-corruption efforts in the MENA region?

3. How does this partnership with UAB and TA align with The AACI’s mission to promote integrity and transparency in the banking sector?

4. Why is the banking sector critical in the fight against corruption, particularly in the MENA region?

5. How do The AACI’s anti-corruption certification programs, like the CACM, play a role in promoting integrity within financial institutions?

6. What impact do you foresee from this partnership on the sustainable development 4% goals (SDGs) and the broader economic stability in the MENA region?

7. How does the banking sector’s anti-corruption strategy align with national efforts to combat corruption?

8. Why is addressing conflicts of interest essential in the fight against corruption within the banking industry?

9. What role does institutional integrity play in fostering an ethical banking environment?

10. How can whistleblowing strengthen a bank’s anti-corruption strategy?

Conclusion

Chairman Antoine Habib reveals how the bank maintains credibility and secures funding in challenging times.

How do you evaluate Banque de l’Habitat’s role in fulfilling its commitments despite economic challenges?

Can you share the details of Banque de l’Habitat’s collaboration with the Arab Fund for Economic and Social Development?

What were the outcomes of the official mission to Kuwait and your meeting with the Arab Fund for Economic and Social Development?

How has the new electronic platform simplified and streamlined the loan application process?

Are the current financial resources sufficient to meet citizens’ needs?

What strategies does Banque de l’Habitat employ to ensure the sustainability of new funding sources, both local and international?

What are the main obstacles facing borrowers, and how can they be addressed?

What does the Excellence Award received by Banque de l’Habitat signify for its position among Arab banking institutions?

What sets Banque de l’Habitat apart from other Lebanese banks, particularly in housing loans?

A Legacy of Excellence

An Assembly of Distinguished Leaders

The Selection Process: Celebrating the Best

Spotlight on Achievements and Innovations

Profiles of Excellence: Stories of Leaders and Innovators

The World Union of Arab Bankers: A Unifying Force

The Banking Executive Magazine: A Decade of Illuminating Success

A Legacy and a Vision for the Future

Dr. Sharif Farouk, Minister of Supply and Internal Trade of the Arab Republic of Egypt

Dr. Joseph Torbey, Chairman, World Union of Arab Bankers (WUAB)

Dr. Wissam Fattouh, Secretary General of the World Union of Arab Bankers (WUAB) and Union of Arab Banks (UAB)

Link to Event: https://wuab.org/arab-banks-awards-commendations-of-excellence-2024/

BY DR SOHA MAAD

Introduction

Cop 16 at a Glance

Negotiation Track

Action Agenda