Sustainability at the forefront of digital transformation

Sustainability at the forefront of digital transformation

Sustainability at the forefront of digital transformation
To successfully leverage AI, companies need to ensure that sustainability remains at the forefront of decision making.
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As organizations worldwide invest in increasingly diverse applications of AI, from portfolio optimization to supply-chain management and executive decision-making support, there is little doubt that AI is here to stay and adoption will only grow.

Estimates from International Data Corporation, a market intelligence business, suggest that in 2023, enterprises worldwide spent $166 billion on AI solutions — software, hardware and services. This figure is expected to grow by 27 percent per year to reach $423 billion by 2027.

According to a recent report by PwC, the generative AI market in the Gulf region alone could be worth up to $24 billion by 2030. Various states in the region have made major investments in AI, committing significant resources.

has established the Saudi Authority for Data and Artificial Intelligence, the UAE has a minister of state for artificial intelligence at the nation’s AI Office and Qatar launched its Artificial Intelligence Committee in 2019.

Overall, PwC predicts the Middle East will accrue 2 percent of the total global benefits from AI by 2030, worth about $320 billion.

However, new data centers and digital infrastructure will be required to support the unique technical requirements of this expansion — built at scale quickly, efficiently and with resiliency. In the process, these developments will create sustainability challenges.

Schneider Electric, which specializes in digital automation and energy management, has found that AI workloads present specific demands and disruption challenges that many data center owners and operators might not be prepared for.

If businesses with IT portfolios that include data center facilities are unable to cope with the demands created by AI, they risk missing out on business opportunities and potentially jeopardizing their sustainability goals.

One hyperscale operator reportedly experienced a 48 percent increase in emissions in the space of five years as a result of the AI data center boom.

If companies are to successfully leverage AI, it is important to ensure sustainability remains at the forefront of decision making by allowing those who are developing or transforming existing facilities, or designing new ones, to do so confidently to keep pace with market growth.

Schneider Electric is one of the companies that provides resources designed to empower chief information officers and IT executives and help them achieve their requirements.

We have established a partnership with Nvidia that brings together a wealth of cutting-edge expertise in the field of AI to build on our existing research and ensure not only that data centers can accommodate AI, but that they are also optimized for it.

We see a future in which AI is deployed in combination with edge computing to provide the power of the technology closer to where the data is generated and services consumed. The benefits of this include low latency for the utilization of real-time data and emerging technology devices.

It is expected AI will also play a crucial role in sustainability efforts more generally. With emissions targets and deadlines looming, businesses will increasingly seek to better measure, manage and reduce their emissions, and the specific capabilities of AI to capture, analyze and distill large volumes of data into actionable insights will be invaluable.

The effects of AI are already being felt and experienced all around us. It is yet another tool that has been added to the business toolbox to help us tackle the challenges and opportunities created by digital transformation and the increasing digitalization of society and the economy.

Businesses such as Schneider Electric are working hard to make it more understandable, accessible and available to organizations through research, resources and partnerships, so that we can all engage with AI confidently, securely and sustainably.

Natalya Makarochkina is senior vice president of the secure power division of international operations at Schneider Electric

 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Trump’s tariffs may cast a pall over Rubio’s first official trip to Asia

Trump’s tariffs may cast a pall over Rubio’s first official trip to Asia
Updated 5 min 31 sec ago

Trump’s tariffs may cast a pall over Rubio’s first official trip to Asia

Trump’s tariffs may cast a pall over Rubio’s first official trip to Asia
  • State Department officials say tariffs and trade will not be Rubio’s focus during the meetings
  • However, Rubio may be hard pressed to avoid the tariff issue that has vexed some of America’s closest allies and partners in Asia

WASHINGTON: Sweeping tariffs set to be imposed by President Donald Trump next month may cast a pall over his top diplomat’s first official trip to Asia this week — just as the US seeks to boost relations with Indo-Pacific nations to counter China’s growing influence in the region.
Trump on Monday sent notice to several countries about higher tariffs if they don’t make trade deals with the US, including to a number of Asian countries. The move came just a day before Secretary of State Marco Rubio planned to depart for a Southeast Asian regional security conference in Malaysia.
Top diplomats and senior officials from at least eight countries that Trump has targeted for the new tariffs, which would go into effect on Aug. 1, will be represented at the annual Association of Southeast Asian Nations Regional Forum in Kuala Lumpur that Rubio will attend on Thursday and Friday.
State Department officials say tariffs and trade will not be Rubio’s focus during the meetings, which the Trump administration hopes will prioritize maritime safety and security in the South China Sea, where China has become increasingly aggressive toward its small neighbors, as well as combating transnational crime.
However, Rubio may be hard-pressed to avoid the tariff issue that has vexed some of America’s closest allies and partners in Asia, including Japan and South Korea, which Trump says would face 25 percent tariffs absent a deal. Neither of those countries is a member of ASEAN but both will be represented at the meetings in Kuala Lumpur.
Rubio’s “talking points on the China threat will not resonate with officials whose industries are being battered by 30-40 percent tariffs,” said Danny Russel, vice president of the Asia Society Policy Institute and a former assistant secretary of state for East Asia and the Pacific during the Obama administration.
“In fact, when Malaysian Prime Minister Anwar Ibrahim last week said ASEAN will approach challenges ‘as a united bloc’ — he wasn’t talking about Chinese coercion, but about US tariffs,” Russel said.
Among ASEAN states, Trump has so far announced up to 40 percent tariffs on at least six of the 10 members of the bloc, including the meeting host Malaysia, which would face a 25 percent tariff mainly on electronics and electrical product imports to the United States.
Southeast Asian countries not yet targeted by the US include Brunei, the Philippines, Singapore and Vietnam, which recently agreed to a trade deal with Trump. The Trump administration has courted most Southeast Asian nations in a bid to blunt or at least temper China’s push to dominate the region.
In Kuala Lumpur, Rubio also will likely come face-to-face with the foreign ministers of two of America’s biggest adversaries: China and Russia. US officials could not say if meetings with either are planned for the short time — about 36 hours — that Rubio will be in Malaysia.
Russel noted that Chinese Foreign Minister Wang Yi is a veteran of such gatherings and “fluent in ASEAN principles and conventions,” while Rubio “is a rookie trying to sell an ‘America First’ message to a deeply skeptical audience.”
Issues with both countries remain substantial, particularly over Ukraine.
Trump on Tuesday expressed his exasperation with Russian President Vladimir Putin, saying, “I’m not happy with him, I can tell you that much right now” as Moscow ramps up attacks in Ukraine amid the American leader’s push for a peace deal.
Trump also announced that the US would resume providing Ukraine with defensive weapons after the Pentagon announced a surprise pause in some deliveries last week.
US officials continue to accuse China of resupplying and revamping Russia’s military industrial sector, allowing it to produce additional weapons with which it can attack Ukraine.


Japan starts deploying Osprey fleet at a new base to beef up southwestern defense

Japan starts deploying Osprey fleet at a new base to beef up southwestern defense
Updated 23 min 8 sec ago

Japan starts deploying Osprey fleet at a new base to beef up southwestern defense

Japan starts deploying Osprey fleet at a new base to beef up southwestern defense
  • Japan’s accelerating military buildup, especially in the southwest in recent years, serves as a deterrence to China’s increasingly assertive maritime actions in the area

HIROSHIMA: The Japanese army on Wednesday began deploying its fleet of V-22 Ospreys on a newly-opened, permanent base in southwestern Japan, the country’s latest move to beef up its defense amid growing tension in the region.
The first of the fleet of 17 Ospreys safely arrived at its new home base of Camp Saga, Japan’s Ground Self-Defense Force said Wednesday.
The move is part of Japan’s accelerating military buildup, especially in the southwest in recent years, as a deterrence to China’s increasingly assertive maritime actions in the area.
The tilt-rotor aircraft have been temporarily based at Camp Kisarazu, near Tokyo, since 2020 during construction of the base and other necessary facilities. The rest of the fleet is scheduled to complete its relocation in mid-August, the JGSDF officials said.
With the full, permanent deployment at Camp Saga, Japan plans to operate the Ospreys more closely with the country’s amphibious rapid deployment brigade at Ainoura, in the nearby naval town of Sasebo, as part of the ongoing plan to reinforce the defense of southwestern remote islands, Defense Minister Gen Nakatani told reporters Tuesday.
“The security environment surrounding Japan has been increasingly severe, and it is our pressing task to strengthen our island defense capabilities,” he said.
Camp Saga ground forces also work with 50 helicopters based at another nearby camp, Metabaru, as well as with air force and navy personnel based in the area.
The use of the V-22 remains controversial in Japan, especially in southern Japan, due to a series of accidents involving the aircraft.
In November 2023, a US Air Force Osprey crashed off Japan’s southern coast, killing eight people. In October 2024, a Japanese army V-22 Osprey tilted and hit the ground while attempting to take off during a joint exercise with the US military, and an investigation has found human error was the cause.


IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts

IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts
Updated 32 min 20 sec ago

IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts

IMF’s $2.5 billion inflows this fiscal year to back Pakistan’s return to global bonds — analysts
  • The IMF country representative to Pakistan says the government’s program implementation remains strong
  • Analysts say IMF support was crucial during default scare and will remain vital until economic stabilization

KARACHI: Pakistan is expected to receive about $2.5 billion in financing from the International Monetary Fund (IMF) during the current fiscal year (FY26), which analysts say will support the country’s bid to re-enter the international bonds market through instruments such as sukuk or Panda bonds.

The funding will be part of the IMF’s $7 billion commitment to Pakistan over the next two years, comprising $5.2 billion under the Extended Fund Facility (EFF) and $1.4 billion through the Resilience and Sustainability Facility (RSF), aimed at strengthening the country’s foreign exchange reserves, according to the IMF’s latest country report.

“The first review under the RSF, if on schedule, would go to the Executive Board for approval sometime in late 2025, along with the second EFF review,” IMF’s resident representative Mahir Binici told Arab News in a text message.

The Fund’s second review of Pakistan’s economy and end-June 2025 performance criteria is scheduled for September 15. If completed successfully, it would lead to the release of approximately $1.04 billion under the EFF and $211 million through the RSF. A third review is scheduled for March 2026 and would entitle Pakistan to the same amount of funding, if cleared.

“This would be the earliest time at which Pakistan could access RSF-related financing,” said Mahir, referring to the $1.4 billion climate resilience loan the lender approved earlier this year in May. The RSF will be disbursed in equal tranches of about $211 million over the next 28 months.

Pakistan is consistently ranked among the nations most vulnerable to climate change. The country suffered its worst floods in 2022, which killed over 1,700 people, displaced millions and caused infrastructure damage worth an estimated $30 billion. Even this monsoon season, flash floods have already killed more than 60 people, mostly in the country’s northwest and central regions.

The climate funding will be disbursed “with each joint EFF and RSF review,” Mahir said.

“The first EFF review and RSF request were recently concluded, and the program implementation has been strong,” he said in response to a question about Pakistan’s performance in terms of compliance with the loan’s conditions.

Sana Tawfik, a Karachi-based economist and head of research at Arif Habib Ltd., said the IMF’s financial support was a key factor behind Pakistan’s improving macroeconomic indicators and would keep the government on track to secure funding from both bilateral and commercial lenders.

“The bilateral lenders like China, and other countries, as well as Pakistan’s commercial lenders closely observe whether or not the IMF is onboard,” she said.

Tawfik maintained Pakistan was aiming to return to the international bonds market, potentially through a sukuk issue or Panda bonds.

In March, Finance Minister Muhammad Aurangzeb said his government aimed to raise about $200 million through Panda bonds by December 2025 to diversify funding sources, reduce dependence on Western markets, and boost foreign exchange reserves.

The move came after an improvement in Pakistan’s sovereign credit rating by three major agencies, with the government targeting a “single-B” rating to regain access to global debt markets.

“The IMF staying on board is very important for this,” Tawfik said, adding that continued dollar inflows were also critical to repaying Pakistan’s external debt.

In FY26 alone, the country is expected to repay around $17 billion in foreign loans, excluding the current account deficit, according to IMF data.

“The significance of this 37-month loan program is that it came as a medium-term support for Pakistan and that’s why we are seeing improvement in our macroeconomic indicators,” she told Arab News.

Muhammad Waqas Ghani, head of research at JS Global Capital Ltd., said participation in the IMF program served as a crucial policy anchor, supporting structural reforms aimed at stabilizing Pakistan’s fragile economy.

While the country looks to tap global capital markets, Ghani said “association with the Fund is essential for enhancing confidence among both local and international investors.”

He added that continued IMF backing was key to unlocking further multilateral and bilateral support.

Tawfik agreed.

“The IMF support was important for Pakistan at the time [it came close to] default [in 2023] and it will remain important until we properly stabilize as an economy,” she said.


European intelligence officials warn that a Russian sabotage campaign is escalating

European intelligence officials warn that a Russian sabotage campaign is escalating
Updated 09 July 2025

European intelligence officials warn that a Russian sabotage campaign is escalating

European intelligence officials warn that a Russian sabotage campaign is escalating
  • Spokesperson Dmitry Peskov previously said the Kremlin has never been shown “any proofs” supporting accusations Russia is running a sabotage campaign and said “certainly we definitely reject any allegations”

LONDON: It was almost midnight when a truck driver resting in his cab heard the crackling of flames at a warehouse in east London storing equipment for Ukraine. He grabbed a fire extinguisher and leapt out — but realized the blaze was too big and retreated.
When police arrived, they banged on the doors of a nearby apartment building, shouting at residents to evacuate. Parents grabbed children and ran into the street.
About 30 minutes after the fire started, Dylan Earl, a British man who admitted to organizing the arson, received a message from a man UK authorities say was his Russian handler.
“Excellent,” it read in Russian.
On Tuesday, a British court found three men guilty of arson in the March 2024 plot that prosecutors said was masterminded by Russia’s intelligence services — part of a campaign of disruption across Europe that Western officials blame on Moscow and its proxies. Two other men, including Earl, previously pleaded guilty to organizing the arson.
The fire is one of more than 70 incidents linked to Russia that The Associated Press has documented since Moscow’s invasion of Ukraine in February 2022.
Four European intelligence officials told AP they’re worried the risk of serious injury or even death is rising as untrained saboteurs set fires near homes and businesses, plant explosives or build bombs. AP’s tracking shows 12 incidents of arson or serious sabotage last year compared with two in 2023 and none in 2022.
“When you start a campaign, it creates its own dynamic and gets more and more violent over time,” said one of the officials, who holds a senior position at a European intelligence agency. The official, like two others, spoke on condition of anonymity to discuss security matters.
The Kremlin did not reply to a request for comment on the British case. Spokesperson Dmitry Peskov previously said the Kremlin has never been shown “any proofs” supporting accusations Russia is running a sabotage campaign and said “certainly we definitely reject any allegations.”
Recruiting young amateurs
Most of the saboteurs accused of working on behalf of Russia are foreign, including Ukrainians. They include young people with no criminal records who are frequently hired for a few thousand dollars, the intelligence officials said.
The senior official said Russia has been forced to rely increasingly on such amateurs since hundreds of Moscow’s spies were expelled from Western countries following an operation to poison former Russian intelligence officer Sergey Skripal in the UK in 2018. That led to the death of a British woman — and a major response from the West.
Russia “had to change the modus operandi, from using cadre officers to using proxies, making a more flexible, deniable system,” the official said.
Documents shared during the London warehouse trial offered a rare glimpse into how young men are recruited.
Among those were transcripts of messages between a man prosecutors said was a Russian intelligence operative and his recruit, Earl, who was active on Telegram channels associated with the Wagner group — a mercenary organization whose operations were taken over by Russia’s Defense Ministry in 2023.
Russian military intelligence — acting through Wagner — was likely behind the plot, said Kevin Riehle, a lecturer in Intelligence and National Security at Brunel University in London.
The recruiter — who used the handle Privet Bot — posted multiple times in a Telegram channel asking for people to join the battle against the West, Riehle told the court.
Once connected, the recruiter and Earl communicated predominantly in Russian with Earl using Google to translate, according to screenshots on his phone. Their messages ranged from the deadly serious to the almost comic.
The recruiter told Earl, 21, that he was “wise and clever despite being young,” and suggested he watch the television show “The Americans” — about Soviet KGB intelligence officers undercover in the US
“It will be your manual,” the recruiter wrote.
In one message, Earl boasted of — unproven — ties to the Irish Republican Army, to “murderers, kidnappers, soldiers, drug dealers, fraudsters, car thieves,” promising to be “the best spy you have ever seen.”
Potential for injuries
Earl and another man eventually recruited others who went to the warehouse the night of the fire. Earl never met the men, according to messages shared in court, and it’s unclear whether he ever visited the site himself.
Once at the warehouse, one of the men poured out a jerrycan of gasoline before igniting a rag and throwing it on the fuel. Another recorded the arson on his phone. It was also captured on CCTV.
The warehouse was the site of a mail order company that sent supplies to Ukraine, including StarLink devices that provide Internet by satellite and are used by the country’s military.
Around half the warehouse’s contents were destroyed in the fire, which burned just meters (yards) from Yevhen Harasym, the truck driver, and a short distance from an outbuilding in the yard of a home and the apartment block.
More than 60 firefighters responded.
“I started knocking on everyone’s doors screaming and shouting at the top of my lungs, ‘There’s a fire, there’s a fire, get out!’” Tessa Ribera Fernandez, who lives in the block with her 2-year-old son, told the court.
A campaign grows more dangerous
When Russia’s disruption campaign started following the Ukraine invasion, vandalism – including defacing monuments or graffiti — was more common, said the senior European intelligence official.
“Over the last year, it has developed to arson and assassination,” the official said.
Other incidents linked to Russia with the potential to cause serious injury or death include a plot to put explosive devices on cargo planes – the packages ignited on the ground – and plots to set fire to shopping centers in Poland, Latvia and Lithuania.
Lithuanian prosecutors said a Ukrainian teenager was part of a plan to plant a bomb in an IKEA store just outside the capital of Vilnius last year.
It sparked a massive fire in the early hours of the morning. No one was injured.
More fires and a kidnapping plot
Shortly after the fire in London, Earl and his co-conspirators discussed what they would do next, according to messages shared with the court.
They talked about burning down London businesses owned by Evgeny Chichvarkin — a Russian tycoon who delivered supplies to Ukraine.
Hedonism Wines and the restaurant Hide should be turned to “ashes,” Earl said.
In the messages, Earl vacillated between saying they didn’t “need” any casualties and that if they “wanted to hurt someone,” they could put nails in a homemade explosive device. He noted there were homes above the wine shop.
That reflects a phenomenon the senior intelligence official noted: Middlemen sometimes suggest ideas — each one a “little better” and more dangerous.
While Russia’s intelligence services try to keep “strict operational control” — giving targets, deciding on devices and demanding recruits record the sabotage — sometimes “control does not hold,” said Lotta Hakala, a senior analyst at the Finnish Security and Intelligence Service.
That appears to be what happened in London.
After the fire, the Russian recruiter told Earl he “rushed into burning these warehouses without my approval.”
Because of that, he said, “it will be impossible to pay for this arson.”
Still, the recruiter told Earl he wanted to target more businesses with links to Ukraine.
“You are our dagger in Europe and we will be sharpening you carefully,” the recruiter wrote. “Then we will start using you in serious battles.”


250,000 Pakistanis register for Hajj 2026 as deadline ends today

250,000 Pakistanis register for Hajj 2026 as deadline ends today
Updated 09 July 2025

250,000 Pakistanis register for Hajj 2026 as deadline ends today

250,000 Pakistanis register for Hajj 2026 as deadline ends today
  • Applicants can choose between government and private Hajj schemes after registering
  • Registration is mandatory for all intending pilgrims, though no fee is required at this stage

ISLAMABAD: Some 250,000 Pakistanis have signed up to perform Hajj in 2026 as the deadline for mandatory registration ends today, Wednesday, state media reported.

Last month, the Ministry of Religious Affairs announced the launch of the Hajj registration process, which would remain open until July 9. After the deadline, applicants will be able to choose between the government and private Hajj schemes.

Intending pilgrims can register through 15 designated banks, and only those who complete the process will be eligible to perform Hajj next year. No fee is required at the registration stage.

“With just one day remaining for the mandatory registration of Hajj 2026, as many as 250,000 Pakistanis have completed the process,” the Associated Press of Pakistan said in a report on Tuesday.

“It is noteworthy to mention that Wednesday, July 9, is the final date for intending pilgrims to register for the upcoming Hajj pilgrimage.”

People may also submit their applications online, it said, adding that the expenses and other terms and conditions of Hajj 2026 will be issued separately as per the Hajj policy.

Registration is mandatory for pilgrims who were left out of the private scheme this year, as well as for Pakistanis residing abroad.

Pakistan had received a quota of 179,210 pilgrims from for Hajj 2025, evenly divided between the government and private Hajj operators.

However, a major portion of the private quota remained unutilized due to delays by companies in meeting payment and registration deadlines, while the government filled its full allocation of over 88,000 pilgrims.

Private operators blamed the situation on technical glitches such as payment issues and communication breakdowns.