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Overcoming challenges in the GCC’s tech ecosystem

Overcoming challenges in the GCC’s tech ecosystem

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Artificial intelligence is well on its way to becoming a transformative force in the Gulf Cooperation Council area. The pace has been further accelerated by the rise of generative AI, which is projected to be a $24 billion market in the GCC by 2030.

However, the region’s stakeholders will need to play catch-up to unlock AI’s full potential. A range of factors must be in place to create a thriving AI ecosystem that supports innovation. Currently, the region faces obstacles in three areas.

First, while the GCC has seen significant funding commitments in AI infrastructure across connectivity, data centers, and cloud, it must accelerate progress, especially in data centers, where supply trails total demand by more than 40 percent.

For example, the market for high-performance computing data centers in ֱ alone is projected to grow from $200 million to $300 million by 2030.

To accommodate higher-density requirements, data centers around the world are undertaking HPC fit-outs using specialized chips. The resulting supply shortage threatens to impede growth. Indeed, the lead time for chip orders in the region is two years.

Second, GenAI uses foundational large language models trained on publicly available data to generate insights. The real value may lie in training these LLMs on an organization’s own datasets.

However, companies typically must undertake a series of time-consuming steps — including, in some cases, reinforcement learning from human feedback — to make raw data usable.

An additional hurdle involves concerns about global regulations on data privacy, access, and copyright. Consider that 27 percent of organizations around the world have banned the use of GenAI altogether.

Third, GCC tech companies seeking to scale up face a talent gap. To date, they have found it difficult to attract specialized tech talent for roles such as machine learning engineers, cloud architecture designers, and data scientists.

The region’s universities are producing competitive graduates, but most companies still source talent from global tech hubs such as Bangalore, London, and Silicon Valley.

Beyond lucrative salaries, these candidates have become accustomed to packages that include equity-linked compensation, flexible working policies, and values-based recruitment. GCC companies have yet to embrace these practices, putting them at a disadvantage.

Elevating the region’s AI ecosystem will require targeted action by the region’s private and public sectors across these three areas.

The AI landscape is evolving quickly, fueled by seemingly continuous advancements in GenAI. The GCC could be well positioned to capture its share of the market.

Prateek Chauhan, Diana Dib, Chady Smayra & Hani Zein

GCC tech champions must adopt an interoperable infrastructure that seamlessly connects both Eastern and Western technologies to ensure adaptability, scalability, and resilience in an ever-evolving tech landscape.

They could address chip shortages either by sourcing from alternative vendors or using cloud services that offer graphic processing units “as a service.”

Companies also need to strengthen their data privacy measures to give customers confidence in how data is handled — for instance, by building gateway LLM architectures that use enterprise datasets in a secure and effective way.

Regional tech leaders can bridge talent gaps through global acquisitions and deploy low-code, no-code, and generative-code tools to empower a broader talent pool.

Meanwhile, regional governments can help remove obstacles to the ecosystem’s development. To ensure the GCC has the necessary infrastructure, they could craft policies and incentives supporting investment in critical hardware and the establishment of HPC data centers to meet local demand.

Regional governments could also aggregate national data and make it available for companies to train and fine-tune LLMs.

Given broader concerns about the accuracy and reliability of AI models, regional policymakers must take a holistic approach to regulating the use of AI. They will need to strike a balance among competing priorities.

For example, setting policies and frameworks that govern data privacy, copyright, and Internet protocol without stunting innovation in AI application development could improve the ability of both local tech champions and the region to promote adoption.

One path would be for government leaders to participate in setting global tech and AI standards rather than simply following them.

Last, they could reimagine the education ecosystem, from K-12 to university, to produce a sufficient supply of data scientists, experts, and tech leaders.

The AI landscape is evolving quickly, fueled by seemingly continuous advancements in GenAI.

The GCC could be well positioned to capture its share of the market — if private companies and public sector leaders can move forward collaboratively and with a sense of urgency to support growth and innovation.

Prateek Chauhan is principal, and Diana Dib, Chady Smayra, and Hani Zein are partners at Strategy& Middle East, part of the PwC network.

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

PIA repatriates 107 Pakistanis stranded in Iran as regional tensions ground flights

PIA repatriates 107 Pakistanis stranded in Iran as regional tensions ground flights
Updated 4 min 14 sec ago

PIA repatriates 107 Pakistanis stranded in Iran as regional tensions ground flights

PIA repatriates 107 Pakistanis stranded in Iran as regional tensions ground flights
  • Iranian airspace was shut to commercial traffic on June 13 following Israeli airstrikes on Iran and heightened fears of wider conflict
  • Several international carriers, including PIA, suspended or rerouted flights passing through Iranian airspace, stranding visitors and expats 

KARACHI: A special PIA flight carrying 107 Pakistanis who had been stranded in Iran landed in Islamabad early Tuesday, the national carrier said, after regional airspace disruptions forced days-long travel delays and overland detours.

Flight PK-9552, arranged under government instructions, departed from the Turkmen capital of Ashgabat and arrived at Islamabad International Airport at 3am, PIA said in a statement.

The passengers had crossed into Turkmenistan by road after being unable to depart directly from Iran due to ongoing airspace restrictions following the start of a war between longtime Middle Eastern enemies Israel and Iran since Friday. The two rivals launched new missile strikes at each other on Wednesday as the air war between them entered a sixth day despite a call from US President Donald Trump for Tehran’s unconditional surrender.

“Due to the closure of Iranian airspace, Pakistani nationals in Iran had to reach Turkmenistan through ground routes,” PIA said, adding that the repatriation was coordinated by Pakistan’s embassies in Tehran and Ashgabat.

“Our missions in Iran and Turkmenistan played a key role in facilitating this process,” PIA added.

Passengers stranded in Iran were mostly short-term visitors, religious pilgrims and workers caught in the fallout of recent regional hostilities. 

Iranian airspace was shut to commercial traffic last week amid rising military tensions, following Israeli airstrikes on Iran and heightened fears of a wider conflict. Several international carriers, including PIA, suspended or rerouted flights passing through Iranian airspace. Pakistani citizens thus found themselves unable to return home through normal flight routes.

A PIA spokesperson said the national carrier took action “in continuation of its decades-long tradition of serving national interest in difficult times.”

While no official figures have been released on how many Pakistanis remain in Iran, foreign ministry officials have confirmed that further evacuations could be arranged if the situation worsens. The foreign ministry has also said diplomatic missions were “in close contact with local authorities” to ensure the safety of all nationals.


Pakistan says no new military cooperation with Iran, direct talks with US amid Israeli strikes

Pakistan says no new military cooperation with Iran, direct talks with US amid Israeli strikes
Updated 40 min 52 sec ago

Pakistan says no new military cooperation with Iran, direct talks with US amid Israeli strikes

Pakistan says no new military cooperation with Iran, direct talks with US amid Israeli strikes
  • Defense minister Khawaja M. Asif says Pakistan mobilizing China and Muslim countries to press for calm before conflict engulfs entire region
  • Says Pakistan Army on high alert and nuclear security robust, warns Israeli government “will think many times before taking on Pakistan”

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif said on Monday Islamabad had not engaged in any new military cooperation with Tehran since Israel launched attacks on Iran last week and had not held specific talks with the United States over the escalating crisis in the Middle East.

Iran, which borders Pakistan, has hit back with strikes against Israel after it unleashed waves of attacks on Friday at Iranian nuclear installations, missile stockpiles, scientists, and military generals, among other targets, sparking global alarm that the conflict could erupt into a regional war.

The latest escalation follows months of hostilities between Israel and Iranian-backed groups in Lebanon, Syria and Yemen, which intensified after the war in Gaza was launched late in 2023. Regional powers fear a direct confrontation could spiral into a broader conflict involving major oil shipping lanes and global energy supplies. For Pakistan, a close Iranian neighbor and a longtime opponent of Israel, a prolonged conflict risks disrupting border security, inflaming sectarian tensions at home, and possibly putting it in a tight spot with other Arab allies and the West.

Speaking in an interview to Arab News, Asif said regular security cooperation was continuing with Iran along their shared border to combat militant groups, but no fresh operational coordination had been initiated in response to Israel’s attacks on Iranian territory since June 13.

“I don’t see any need of [it],” the defense minister said in response to a question on whether Pakistan’s military was coordinating with Iranian counterparts on the border or engaging in any fresh defense cooperation.

“We coordinate on a very regular basis as far as the Iran and Pakistan border is concerned because of terrorist activities… that sort of cooperation is already on. So I don’t see any new activity.”

Asked if Pakistan had held talks with Washington to discuss the fast-evolving situation, the defense minister said there had been no recent contact specifically on the crisis in the past five days:

“But we are in constant touch with the United States of America regarding the tense situation we have in this region.”

Asif said Pakistan’s leadership was instead focused on engagement with close partners like China and Muslim countries to press for calm, warning that the conflict risked engulfing the entire region.

“The countries who have religious affinity with us or geographical affinity, even China or other countries, because what we are pursuing is peace,” he said.

“And we would like to mobilize the countries of this region that this conflict can multiply and it can engulf the whole region into a situation which could be very, very disastrous.”

Smoke rises from a fire, as the Israel-Iran air war continues, in Tehran, Iran, in this still image obtained from social media video released June 17, 2025. (Social Media via REUTERS)

NUCLEAR FACILITIES “MILITANTLY GUARDED”

Diplomatic and security experts warn that the Israel-Iran hostilities could affect Pakistan by destabilizing its western border with Iran, threatening energy imports as oil prices surge, and creating new pressures in Pakistan’s relations with the US and Gulf partners if Islamabad is seen as tilting too far toward Tehran. On the other hand, if Tehran were to fall or be severely weakened, analysts say Pakistan would likely side with the United States and its allies — despite being Iran’s immediate neighbor — to protect its strategic and economic interests.

Addressing concerns over past remarks by Israeli Prime Minister Benjamin Netanyahu that have drawn parallels between Iran and Pakistan as so-called “militant Islamic regimes” that needed to be deterred, Asif rejected any immediate threat to Pakistan from Tel Aviv but stressed Islamabad would remain vigilant.

“If we are threatened by Israel, which I will discount at the moment… what happens in the coming months or years I can’t predict, but at the moment I discount [a threat from Israel],” he said.

Pakistan’s Defense Minister Khawaja Asif speaks with Arab News Pakistan in Islamabad, Pakistan, on June 17, 2025. (AN photo)

He described Israel as a state with “hegemonic intent” whose recent actions in Gaza and against Iran were “extremely dangerous to the immediate region,” and said global public opinion was turning against Israeli policies despite support or muted reactions from many Western governments.

Asif declined to comment on reports that Pakistan had scrambled fighter jets near its nuclear sites and the Iranian border in response to Israel’s initial strikes on Iran but insisted that its nuclear security remained robust.

In addition to the Middle East tensions, Pakistan faced a major military standoff with India last month in which the two nations exchanged missile, drone and artillery attacks. Islamabad claimed to have shot down six Indian jets and struck back at military positions, triggering fears of a wider conflict between the nuclear-armed rivals before a ceasefire was announced by the President Donald Trump administration on May 10.

When questioned about any direct threat to Pakistan’s national security or strategic assets as a result of the conflict in the Middle East, the defense minister said Pakistan’s armed forces were already on high alert following the latest confrontation with New Delhi, describing the country’s nuclear facilities as “very militantly guarded, very grudgingly guarded” and fully compliant with international safeguards.

“Since our short war with India [in May], we have been on alert so we have not lowered guards… We can never take the risk of any attack on our nuclear facility from anywhere, that is something which is a lifeline as far as our defense is concerned,” he said

Asif said Pakistan’s performance in the recent fight with India was evidence of the country’s defense capability and national resolve, which would deter Israel from any adventurism. 

“We have just had a bout with India and we clearly established our superiority, the superiority of our armed forces, Air Force, Pakistan Army, Pakistan Navy and the determination of our people, the way the nation stood behind the armed forces,” the defense minister said.

“So I think Netanyahu or his people or his government will think many times before taking on Pakistan.”


Pakistan evacuates diplomats’ families, non-essential staff from Iran as Israel conflict worsens

Pakistan evacuates diplomats’ families, non-essential staff from Iran as Israel conflict worsens
Updated 18 June 2025

Pakistan evacuates diplomats’ families, non-essential staff from Iran as Israel conflict worsens

Pakistan evacuates diplomats’ families, non-essential staff from Iran as Israel conflict worsens
  • Pakistan’s embassy in Tehran, consulates will continue to remain functional, confirms official
  • Israel and Iran have been locked in conflict since last Friday, trading missiles and air strikes 

ISLAMABAD: Pakistan has started evacuating families of its diplomats and staff, as well as members of some non-essential staff from Iran, a senior foreign ministry official confirmed on Tuesday as Tehran’s military conflict with Israel intensifies. 

Thousands of residents of Iran’s capital Tehran are reportedly fleeing their homes and stockpiling essential supplies out of fear that Israel will intensify its strikes against regional foe Iran in the coming days. 

Iran and Israel have been locked in military conflict since Friday when the latter attacked the former’s nuclear facilities and military leadership in a bid to prevent it from developing nuclear weapons. Israel’s strikes have killed at least 224 people in Iran while Tehran has retaliated by launching more than 370 missiles and hundreds of drones at Israel. So far, 24 people have been killed in Israel and more than 500 wounded.

“The foreign ministry is moving out families of diplomats and staff and some non-essential staff from Iran,” the official, who requested anonymity as they were not authorized to speak to media, said in a statement.

“However Pakistan embassy in Tehran and our consulates will continue to remain functional.”

Pakistan has been repatriating hundreds of its citizens from Iran and Iraq since the conflict began last week. Thousands of Pakistani zaireen (pilgrims) travel annually to Iran and Iraq to visit holy sites there. Many were left stranded since Friday as airspaces closed following Israel’s attacks.

Pakistan repatriated 268 nationals from Iraq via two flights on Monday while on Sunday, it evacuated 450 nationals from Iran. 

Pakistan has condemned Israel’s strikes, calling them an unjustified violation of Iranian sovereignty, and has urged the international community to help de-escalate tensions through dialogue.


Syrian farmers pay price of worst drought in decades

Syrian farmers pay price of worst drought in decades
Updated 18 June 2025

Syrian farmers pay price of worst drought in decades

Syrian farmers pay price of worst drought in decades
  • One fruit grower forced to chop down dead pear trees and use them for firewood

DAMASCUS: Syria’s worst drought in decades is taking a devastating toll on the agricultural region of Al-Nashabiyah east of Damascus.
Water reserves are down by more than 60 percent on previous years, levels in dams in March were lower than the past two years, and some areas have lost more than 70 percent of their groundwater reserves.
Farmer Mati Mohammed Nasser expects to lose his whole harvest of wheat, pears, plums and other fruit and vegetables. He usually picks about 200 kg of pears a year from trees he has raised from seedlings, but this year he will chop down the dead trees and use them for firewood.
He paid almost $2,000 to dig a deep well, but the water was only a couple of centimeters deep.
“What are we supposed to do with that?” he said. “We have lost hope. We sold everything we had and invested it into the land.”

Another farmer, Al-Nashabiyah’s deputy mayor Mahmoud Al-Hobeish, is $4,000 in debt. “People are asking for it and they know I cannot pay,” he said.


Nelly Korda suffers neck spasm, but will be ready for Women’s PGA Championship

Nelly Korda suffers neck spasm, but will be ready for Women’s PGA Championship
Updated 18 June 2025

Nelly Korda suffers neck spasm, but will be ready for Women’s PGA Championship

Nelly Korda suffers neck spasm, but will be ready for Women’s PGA Championship
  • Korda cited a neck injury for missing a pair of tournaments on the Asia swing late in the 2024 season
  • Korda said the heat in Texas this week will be a potential complicating factor as she tries to gameplan how to “be smart” and take care of her body while going out and competing

FRISCO, Texas: World No. 1 Nelly Korda attended a press conference Tuesday at the KPMG Women’s PGA Championship with therapeutic tape on her neck.

Korda explained that she suffered a spasm the day before during practice at PGA Frisco, the site of this week’s major championship.

“I hit a shot out of the rough yesterday (Monday), and my neck went into a full spasm,” Korda said. “It’s getting better, but yeah, it was not very good yesterday.”

But Korda — the betting favorite to win this week despite a winless start to her season —  said she expects to be ready for her first-round tee time Thursday.

The injury nonetheless comes at a tough time for Korda, whose last win on the LPGA Tour came in November. She tied for second at the US Women’s Open earlier this month.

Korda cited a neck injury for missing a pair of tournaments on the Asia swing late in the 2024 season. She also sat out a chunk of the 2022 season due to a blood clot in her arm.

“Obviously with the injury that I had last year, every single time something kind of flares up in my neck now, I think I feel it a little bit more than what I used to,” she said.

“But I have a great physio who takes care of me. Trying to work through it, but I’ll be ready by Thursday.”

Korda said the heat in Texas this week will be a potential complicating factor as she tries to gameplan how to “be smart” and take care of her body while going out and competing.

Korda won the first of her two major titles at the 2021 Women’s PGA in Atlanta. That earned her a lifetime invite to the champions’ dinner, but she had to pass on the tradition Monday evening while getting treatment for her neck.

“I didn’t go because of my neck. I was so sad to miss it, though,” Korda said. “I messaged (defending champion Amy Yang of South Korea); the menu looked unbelievable. I love Korean food. So I was really jealous.

“At the end of the day, I need to prioritize my body. So I wasn’t able to go, but I missed out on a good dinner.”