Al-Riyadh Newspaper, June 20, 2025: Education and Technology, Economic Diversification, Humanitarian Efforts

These sources from Al Riyadh newspaper highlight Saudi Arabia’s ambitious advancements and cultural initiatives. They detail the Kingdom’s progress in education and technology, with universities achieving global recognition and the widespread adoption of AI. The texts also emphasize Saudi Arabia’s economic diversification, focusing on oil market stability through OPEC+ and the promotion of tourism and cultural heritage. Furthermore, the sources touch upon humanitarian efforts by the King Salman Humanitarian Aid and Relief Center and ongoing development projects across various regions, all contributing to the nation’s 2030 Vision for a prosperous future.

PMU: A Top 100 University for Sustainable Development

Prince Mohammad bin Fahd University (PMU) has achieved a significant global academic milestone by entering the list of the top 100 distinguished universities worldwide.

Here are the key details regarding PMU’s global ranking:

• PMU is featured in the Times Higher Education Impact Rankings. This ranking specifically assesses universities’ contributions to the United Nations Sustainable Development Goals (SDGs).
• The university secured the 98th position globally out of 2,526 universities that participated from 130 countries.
• The Times Higher Education Impact Rankings are considered the most prominent global indicator for evaluating universities’ commitment to the 17 Sustainable Development Goals. These goals encompass critical issues such as poverty eradication, equality, quality education, climate action, clean energy, peace, and justice.
• This notable progress by PMU is a reflection of the extensive and continuous efforts made by the Kingdom of Saudi Arabia, under its wise leadership, to foster academic and research excellence and establish the country as a leading educational and research hub on the global stage.
• His Royal Highness Prince Turki bin Mohammed bin Fahd bin Abdulaziz, Minister of State and Member of the Council of Ministers, commended the Ministry of Education’s active role in supporting and guiding universities to achieve such international accomplishments. He also emphasized that this achievement underscores the university’s commitment to its vision and mission of actively contributing to sustainable development goals.
• The university’s success is directly attributed to its diligent work and clear strategies, particularly in areas such as scientific research with a societal impact, innovative academic programs, and community engagement. This is also linked to the insightful vision of the university’s founder, the late Prince Mohammad bin Fahd.

OPEC+ Stability and Global Oil Markets

Prince Mohammad bin Fahd University (PMU) was the subject of our previous conversation, where we discussed its global ranking among the top 100 distinguished universities worldwide, specifically its 98th position in the Times Higher Education Impact Rankings for its contributions to the UN Sustainable Development Goals.

Now, regarding your query about OPEC+ stability, the provided sources offer significant insights into this topic, particularly from the perspective of Saudi Arabia’s Minister of Energy and market analysts.

Here’s a comprehensive overview of OPEC+ stability:

• OPEC+ as a Reliable and Effective Alliance:
• The Saudi Minister of Energy, Prince Abdulaziz bin Salman, has affirmed that OPEC+ is a reliable and effective alliance that takes into account prevailing circumstances when they arise.
• He highlighted that the alliance has achieved significant success in ensuring the stability of oil markets.
• Prince Abdulaziz described OPEC+ as the “central bank and regulator of oil markets”.
• Composition and Commitment:
• He clarified that OPEC+ is not managed by just two states, but comprises 22 OPEC member countries in addition to a group of eight other nations. Saudi Arabia and Russia, in particular, collaborate to foster an investment-friendly environment, including joint projects.
• The Minister emphasized the collective responsibility of all partners and member countries to ensure their participation in addressing any market situation that may emerge.
• He underlined that their past experiences confirm their capability as a trustworthy, serious, and effective organization that prioritizes attention to evolving circumstances.
• Role in Oil Prices:
• The Minister of Energy stated that OPEC+ has become a key guarantor for oil prices and the sector as a whole.
• Market Perceptions and Geopolitical Impact:
• Despite recent geopolitical tensions, the CEO of the Italian energy company Eni, Claudio Descalzi, indicated that oil markets suggest a closure of the Strait of Hormuz is “unlikely”. He noted that approximately one-fifth of the world’s total oil consumption passes through this strait.
• Descalzi believes that oil markets are not pricing in the most extreme scenarios, such as the strait’s closure.
• He also pointed out that a closure would primarily affect Iranian oil sales and would likely necessitate a U.S. intervention. He expressed confidence that global leaders would strive to prevent such events, despite the highly volatile current situation.
• Recent Market Dynamics and Inflationary Impact:
• Oil prices saw some stabilization at the end of the previous week, with slight decreases following new U.S. sanctions on Iran, which fostered hopes for a diplomatic agreement.
• Brent crude futures and U.S. West Texas Intermediate (WTI) crude for July delivery experienced minor dips, although overall, Brent crude rose by 3.6% and U.S. crude futures for the next month’s delivery by 2.7% over the week.
• U.S. sanctions targeting Iran involved 20 entities, 5 individuals, and 3 vessels.
• Following Israeli strikes on nuclear targets in Iran and Iran’s retaliatory missile and drone attacks, oil prices jumped nearly 3%. However, Brent prices subsequently decreased after the White House indicated that President Trump would not decide on U.S. intervention in the Israeli-Iranian conflict within the next two weeks.
• Analysts from UBS noted that oil exports haven’t been affected, and there are no supply shortages.
• Morgan Stanley economists suggest that the recent rise in oil prices, primarily driven by supply cuts (including those by Saudi Arabia), is a supply shock rather than a sign of booming global demand, and is expected to have only a “slight” and “short-lived” inflationary impact. They estimate this impact at about 3 basis points on core inflation over three months.
• U.S. energy companies have reduced the number of oil and gas rigs for the eighth consecutive week, marking the first such occurrence since September 2023.

King Abdulaziz Quality Award: Excellence and Vision 2030

The King Abdulaziz Quality Award is a significant national initiative in the Kingdom of Saudi Arabia, playing a crucial role in promoting excellence and achieving national development goals.

Here are the key aspects of the King Abdulaziz Quality Award:

• Prominence and Purpose:
• The award is considered one of the most prominent national events focused on institutional excellence and performance quality in the Kingdom.
• It aims to solidify a culture of high-performance excellence and motivate entities to adopt models that ensure sustainability and effectiveness.
• The award serves as a national reference point for measuring institutional performance and guiding development pathways. This contributes to inspiring organizations and fostering national leadership by creating a positive competitive environment that enhances transparency and accountability, ultimately improving the quality of services provided to society.
• Supervision and Alignment with Vision 2030:
• The award is supervised by the Ministry of Economy and Planning.
• It is identified as one of the effective drivers in achieving the Kingdom’s Vision 2030 objectives. This alignment underscores Saudi Arabia’s commitment to fostering excellence and innovation across various sectors to meet its ambitious national vision.
• Evaluation Criteria:
• Winning entities undergo a rigorous evaluation and review process.
• This evaluation is based on the highest standards of quality, governance, and institutional excellence.
• These standards assess the entities’ demonstrated commitment to principles of efficiency, innovation, and continuous improvement.
• Recent Ceremony (7th Session):
• The ceremony for honoring the winning establishments of the King Abdulaziz Quality Award was held under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz.
• His Royal Highness Prince Mohammed bin Abdulrahman bin Abdulaziz, Deputy Governor of Riyadh Region, attended the event.
• This particular event marked the 7th session of the award.

The Expanding Reach of AI and Generative AI

Artificial Intelligence (AI) and its applications are extensively discussed in the sources, highlighting its transformative impact across various sectors in Saudi Arabia and globally.

Generative AI (GenAI) and its Impact: GenAI refers to a group of AI techniques capable of learning patterns from vast datasets and producing new content in various forms, including texts, images, audio, video, programming code, and simulations. It distinguishes itself from traditional AI by its ability to perform more complex and creative tasks, unlike traditional AI which is limited to predictions, classification, and recommendations.

• Cost Reduction and Efficiency: GenAI can lead to a significant reduction in operational costs, potentially up to 30% or more, through the automation of tasks and functions. This includes automating routine and complex operations, ensuring product quality, and enhancing productivity in work environments.
• Sectoral Benefits: A study by “Deloitte” indicates that human resources departments have notably benefited from GenAI, seeing cost reductions ranging between 10% and 37%. Supply chain departments have also experienced profit increases, reaching over 6% in some cases.
• Investment and Adoption Trends: Global investment in GenAI is expected to experience accelerated growth, with projections to reach $202 billion by 2028, accounting for 32% of total global AI spending. Studies suggest that approximately 80% of organizations are anticipated to adopt GenAI solutions by 2026, with 50% relying on specialized models by 2027. Globally, 60% of organizations had already adopted AI in at least one area by 2023, a significant increase from 20% in 2017.
• Regional Adoption (MENA): A “McKinsey” study in 2024, involving 140 governmental and private entities in the Arabian Gulf, revealed that over three-quarters of participating entities use Generative AI in at least one area, particularly in sales, marketing, programming, and engineering.

Specific AI Platforms and Applications:

• Nutanix AI Enterprise (NAI): This platform is designed to strengthen the deployment of autonomous AI applications across various environments. The latest version offers deep integration with NVIDIA AI Enterprise, NVIDIA NIM microservices, and the NVIDIA NeMo framework, aiming to accelerate the deployment of generative AI applications within organizations.
• Key Features and Benefits: NAI facilitates the deployment of Large Language Models (LLMs) via endpoints, provides access to a wide range of endpoint services, and supports the safety of generative AI. It simplifies shared model services and streamlines deployment and maintenance workflows. The platform enables secure and confidential creation of connection points for scaling AI applications, and allows organizations to build, operate, and manage AI agents securely and efficiently. This is seen as a crucial step for the public sector in Saudi Arabia to accelerate AI adoption in line with Vision 2030.
• Smart Cities and Infrastructure: AI plays a role in the development of smart cities. For instance, Khobar’s advancement in livability rankings is partly attributed to the Kingdom’s vision for improving quality of life and creating attractive environments for living and investment, implying the integration of advanced technologies like AI in urban infrastructure and planning.
• Petrochemical Industry: Saudi petrochemical companies have embraced digital technologies, automation, and AI tools to enhance production efficiency, optimize operational scheduling, implement predictive maintenance, and improve decision-making accuracy and flexibility. This digital transformation is vital for competitiveness in the global market.
• Health Sector: The concept of a “Biobank” aims to collect biological samples linked with precise health and demographic data, creating a knowledge base for research, disease prevention, and healthcare planning. This project represents a meeting point of health, research, and artificial intelligence, opening avenues for early diagnosis and prioritizing population health needs. It also supports national health security by enabling rapid response capabilities for epidemics and rare diseases.
• Internet Usage and Societal Impact: Reports indicate that younger age groups (9-29 years) in Saudi Arabia utilize AI tools to a greater extent, with up to 48% engagement compared to older demographics (over 60 years) at around 6%. This suggests that AI will be a focus of societal interest in the coming phase. However, there are concerns, as AI tools and deepfake technologies are implicated in issues like marital infidelity, family breakdown, and the spread of fabricated rumors.

Drivers and Challenges of AI Adoption:

• Drivers: The primary drivers for rapid AI adoption include the profit motive for publicly traded companies, which face quarterly pressure to reduce costs and boost stock performance. Additionally, a powerful media machine perpetuates the narrative of AI success, fostering a “fear of missing out” among executives who feel compelled to adopt AI to keep pace.
• Challenges: The rapid adoption of AI is contrasted by a lag in educational institutions, which are slow to integrate AI curricula. This creates a gap where displaced workers may not have suitable retraining opportunities, and new AI-driven jobs struggle to find qualified candidates. The sources emphasize the need for better integration and coordination among the various components—education, governance, and legislation—to ensure a coherent and effective adoption of AI, rather than a fragmented, “rusting gears” approach.

The Far-Reaching Impacts of Global Conflicts

Conflicts, as highlighted in the sources, have far-reaching and multifaceted impacts across economic, humanitarian, social, and geopolitical spheres, often creating prolonged instability and suffering.

Key impacts of conflicts include:

• Economic Disruptions:
• Market Volatility and Inflation: Conflicts contribute to global economic instability and inflation. For instance, the Israel-Iran conflict has led to increased volatility and risk premiums in oil markets, though some analysts believe a Strait of Hormuz closure is unlikely due to its severe global implications. Oil prices have surged following attacks, raising fears of increased inflation. The Russia-Ukraine conflict also contributed to rising natural gas prices and supply chain disruptions.
• Supply Chain and Trade Issues: Tensions and conflicts, such as those involving the US and China, create customs barriers and disrupt global supply chains. The potential closure of critical maritime passages like the Strait of Hormuz (through which about 20% of global oil supplies pass daily) and the Bab al-Mandab Strait would lead to a severe global energy crisis, affecting major consumers in Asia and Europe, and causing significant disruptions to global trade.
• Investment Shifts: Global economic instability can lead to investors re-evaluating opportunities, with some turning towards more stable markets like those in the Gulf Cooperation Council (GCC) countries, driven by economic reform programs.
• Operational Costs: Beyond direct conflict zones, companies, particularly in the petrochemical industry, have faced pressures from fluctuating energy prices and competition, pushing them towards digital transformation, automation, and AI tools to enhance efficiency and optimize operations.
• Humanitarian and Social Consequences:
• Mass Displacement and Casualties: Conflicts lead to unprecedented levels of violence against children and massive displacement. Reports indicate over 6.5 million refugees from Syria, 5.7 million from Afghanistan, and 5.7 million from Ukraine. In Gaza, the “war of extermination” has resulted in around 180,000 martyrs and wounded Palestinians, mostly children and women, with over 11,000 missing and hundreds of thousands displaced. The total number of children killed in conflict zones reached over 4,500 in early 2024, with more than 7,000 injured.
• Infrastructure Destruction and Living Conditions: Conflicts devastate infrastructure. In Gaza, the Israeli occupation has destroyed most schools and residential buildings. Operations in areas like Tulkarm have involved the demolition of over 20 buildings and widespread destruction of streets, community facilities, and residential homes.
• Disruption of Essential Services:
• Education: Students in Gaza have been deprived of taking their general secondary exams for the second year in a row due to the ongoing conflict.
• Aid and Healthcare: The Israeli occupation has prevented the entry of fuel shipments into Gaza, impacting the operation of water desalination plants and sewage pumps, and limiting healthcare services. Saudi Arabia, through King Salman Humanitarian Aid and Relief Center, provides extensive aid to conflict-affected regions, including food, shelter, and medical services.
• Psychological and Social Strain: The ongoing threats and violence impose significant psychological burdens on affected populations and even on individuals indirectly exposed, like athletes facing online hate due to gambling. AI tools and deepfake technologies are also noted to be implicated in issues like marital infidelity, family breakdown, and the spread of fabricated rumors.
• Geopolitical and Diplomatic Strain:
• Escalation of Tensions: The Israel-Iran conflict risks a wider regional confrontation. Escalations include Israeli air strikes on Iranian nuclear sites and missile launches by Iran.
• Challenges to Peace and Stability: The global community faces a complex web of interconnected political conflicts and wars, demanding stability, economic growth, and reduced inflation. The Kingdom of Saudi Arabia emphasizes its commitment to resolving conflicts peacefully and supporting humanitarian causes globally.
• Cyber Warfare and Security Concerns: Beyond physical destruction, conflicts can involve cyber interference affecting maritime navigation systems, as seen in the Arabian Gulf and Strait of Hormuz, posing operational challenges for commercial shipping.

In summary, conflicts result in a cascade of negative consequences, ranging from economic downturns and market volatility to severe humanitarian crises, infrastructure destruction, and heightened geopolitical instability.

By Amjad Izhar
Contact: amjad.izhar@gmail.com
https://amjadizhar.blog

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