����ֱ��

RIYADH: One of the world’s leading asset management companies has played down fears the artificial intelligence sector is a bubble akin to the early days of the internet.

Speaking to Asharq Bloomberg on the sidelines of the Future Investment Initiative in Riyadh, Yie-Hsin Hung, president and CEO of State Street Investment Management, also flagged up infrastructure and real estate as areas set to deliver returns as reflected on the current business landscape.

When asked about concerns that AI may not be a sustainable investment, she replied: “If you compare today’s big tech, compared to say the era of the internet bubble, you have companies today that are generating enormous amount of cash flow and able to deliver tremendous returns and I think the promise is there.”

Reflecting on the upcoming meeting of the US Federal Reserve to discuss whether to cut interest rates, Hung struck a postive tone, saying: “We’re calling for 75 basis points of cuts which I think is pretty much the view for the full year, so another 25 after this one. We’d like to see another 75 basis points next year because we’re more worried about the labour market but if in fact the Fed doesn’t cut it would suggest the economy is pretty strong so on balance pretty optimistic.”

RIYADH: Participants in the “Sovereignty vs. Globalization” session during the ninth edition of the Future Investment Initiative conference stressed that the world needs to diversify supply chains, achieve greater energy self-sufficiency, invest in data centers, technology and artificial intelligence, and conclude more joint trade between allied and neighbor countries.

The dialogue session was attended by Qatari Minister of Finance Ali bin Ahmed Al-Kuwari, UK Chancellor Rachel Reeves, and Turkish Minister of Finance Mehmet Simsek, the Saudi Press Agency reported.

They discussed the importance of globalization, trade, artificial intelligence, and cooperation between countries, signing technical agreements and direct partnerships to find solutions to economic crises, while highlighting the importance of working to strengthen the work of multilateral organizations, especially with the work over the years to build a rules-based system based on participation and joint cooperation.

UK Chancellor of the Exchequer Reeves said: “One of the UK government’s priorities is to develop the economy. To achieve this, a solid foundation of stability is required, as is building relationships with important allies.”

She reviewed the UK’s trade deals with a number of countries and the trade agreements that confirm the country’s ability to compete.

For his part, the Qatari finance minister affirmed that his country is open to foreign direct investment, citing the 2022 World Cup, which has given great impetus to building infrastructure and identity.

Al-Kuwari added that he looked forward to benefiting from this while continuing to work to attract international investment, especially since Qatar is one of the world’s major producers of liquefied natural gas.

He noted the importance of cooperation with the entire world to build partnerships and direct investments, such as economic cooperation and trade agreements.

The minister further explained that AI and technology are part of the strategies in his country’s plan to diversify the economy, and that investing in AI and energy is important and logical, noting that Qatar possesses distinct national capabilities in data, innovation, and aviation.

In turn, the Turkish Treasury Minister highlighted the importance of countries investing in international and regional integration, given its benefits in strengthening risk-bearing areas such as energy and ensuring production security.

Simsek emphasized the importance of technology, health, and security as well as AI, data, and cybersecurity, which require more investment, noting the importance of working to reduce risks before they occur.