Global Business Outlook Issue 01 2025

January - March 2025

JeelPay: Transforming education in KSA

The ongoing AI revolution is transforming industries across the globe, and the banking sector is no exception. According to McKinsey Global, generative AI could add between $200-340 billion in annual value to the banking industry through increased productivity. Financial institutions worldwide are developing their own AI adoption strategies, and the upcoming January-March 2025 edition of Global Business Outlook will highlight one such roadmap, focusing on the Kuwait International Bank. Turning our focus to Africa, a significant barrier to intercontinental trade is currency. Major contracts often require US dollars or other nonAfrican hard currencies, which are scarce in many African nations. Additionally, volatile exchange rates have diminished trust in numerous African currencies. There is a pressing need for a single African currency, a topic that we will explore in detail.

Meanwhile, Saudi Arabia’s venture capital and startup ecosystem continues to shine on the global stage, solidifying the Kingdom's position as the leading innovation and investment hub in the Middle East and North Africa region. This success can be attributed to Saudi Arabia’s forwardthinking strategies, substantial financial resources, and rapidly growing entrepreneurial landscape.

As GBO is all set to host its 10th Annual Awards show, the cover story will focus on JeelPay, a Saudi-based fintech company that stands out for its innovative solutions in the education sector. JeelPay has significantly enhanced access to educational services and improved the experiences of individuals and institutions across the country. With its growing importance in the Gulf region’s fintech community, the company recently secured $6.6 million in funding.

Thomas Kranjec Editor kimberly@gbomag.com

06 | The KIB model: Transforming banking sector with AI 22 | Waspi women: UK pension reform dispute intensifies

| Ecuador’s energy crisis calls for urgent reform

46 | Is 'Robo Price-Fixing' hurting US' housing sector? 58 | Circular Economy: The path to trade resilience 68 | Pizza Budget: Taxing fast food in a broken economy

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International Bank

Analysis

The KIB model: Transforming banking sector with AI

GBO Correspondent

Kuwait International Bank has completely revamped its retail app, KIB Mobile, to provide customers with an advanced banking experience

The 21st century global economy is going through an artificial intelligence (AI) revolution, where elements like machine learning, data analysis, and robotics are rapidly changing every brick-andmortar entity. Like any other vertical, the global banking sector is also experiencing unprecedented changes, arguably the fastest in modern history.

These digital revolution-powered transformations are permanently altering the nature of traditional banking, apart from redefining the relationships between banks and their customers. As the global economy faced a screeching halt in 2020 due to the COVID-19 outbreak, all the sectors learnt this crucial tagline: either embrace technology or risk permanent shutdown, thereby recognising the importance of investing in digital services, which will in turn streamline processes and reach a broader customer base.

Since then, innovation in the digitalisation of banking has made headway, with AI pushing the transformation further. The McKinsey Global Institute estimates that the banking sector stands to benefit significantly from generative AI, which could add between $200-340 billion in value annually (equivalent to 9-15% of operating profits) through increased productivity.

Kuwait International Bank (KIB) has adapted to this new reality through its financial initiatives.

The KIB Story

In the modern era, although the global economy is rapidly deploying the "Digital First" approach, some of them are not realising the value of the importance of putting these "technical evolutions" through exhaustive trials, before inducting them to the operations.

Mohamed Elshareef, General Manager, Digital Innovation

and Data Intelligence of the Kuwait International Bank, while using the CrowdStrike example (the largest IT outage in history which was triggered by a botched software update from the security vendor, affecting millions of Windows systems around the world), stated that it is crucial to emphasise the importance of the testing environment, especially because some of these solutions get entrusted with the job of managing trillions of businesses and data points in real-time.

Kuwait International Bank's recent achievements in the digital sector can be attributed to its long-term investment strategy focused on digital infrastructure, which operates on two key fronts. The first front emphasises the development of new services, prioritising flexibility and speed in their launch while ensuring continuity and system reliability. The second front focuses on building a strong digital infrastructure, which is essential for any banking operation.

"At the heart of KIB’s investments in digital infrastructure is the KIB Digital Factory, a unique model in the local banking sector. This innovative concept not only protects, tests, and

develops the bank’s digital services through collaboration with various departments, primarily cybersecurity and information technology, but also engages with customers, gathering their opinions and feedback on services," explained Elshareef in his article for the World Finance, while adding, "this approach aims for rapid, continuous, and flexible development, which is a cornerstone of successful banking operations. Consequently, KIB has been working diligently on its innovative digital offerings. It has launched not one, not two, but three state-of-the-art digital banking platforms since 2023."

Kuwait International Bank has completely revamped its retail app, KIB Mobile, to provide customers with an advanced banking experience. KIB Mobile now offers comprehensive access to financing details, payment schedules, account management, banking cards, and investments.

Customers can manage their financial portfolios, make faster decisions, and use quick services such as transfers, payments, and managing beneficiaries. Then we have the KIBPay service, which allows easy payment requests, account

refills and bill splitting.

"What’s more, KIB introduced the WAMD service for instant payments and money transfers via the KIB Mobile app. Powered by KNET, the service allows easy and secure account-to-account transfers using a valid number, without sharing sensitive banking information," Elshareef said.

For corporate customers, the bank has launched its corporate online banking platform designed to simplify managing employees’ banking operations and financial details. The tool allows for personalisation based on roles and responsibilities, ensuring users have access only to the tools they need.

Customers can also place and redirect requests to designated team members for streamlined processes. Key features include a tracking dashboard for monitoring bank interactions and a POS dashboard for an overview of financial operations via POS, MasterCard, Visa or KNET.

Meanwhile, real estate customers can benefit from the first-of-its-kind

"KIB Aqari Platform," offering tailored services and innovative solutions for all real estate needs. KIB Aqari features digital appraisal requests and follow-ups, QR code verification of appraisal reports, automated rent collection, and late payment tracking, adding convenience to property management.

While KIB offers SWIFT and GCC

Kuwait International Bank's market share of banking revenue in Kuwait from 2017 to 2025

cross-border payment system (AFAQ) services to enable its customers to carry out international money transfers, the bank is also working on adding three new international transfer services to enhance customer experience by providing greater convenience, speed and security.

AI: KIB's new buzzword

The year 2024 saw a new trend: AI aiding in everyday banking needs. There are predictive budgeting tools through which banking apps turn analysis into actionable budgeting advice and insights. KIB's Digital Innovation and Data Intelligence Department did not miss out on this field either.

"Kuwait International Bank introduced a financial tracker tool to its retail digital app, offering customers a variety of benefits. These include a quick financial overview for instant snapshots of spending and savings, detailed expense tracking for better financial control, monthly comparison for month-on-month spending comparisons, bespoke budgeting to set and track budgets in real-time, and advanced analytics for personalised spending behaviour analysis to make informed decisions," Elshareef noted.

The banking sector's AI investment is expected to reach $97 billion by 2027, as mentioned by the International Monetary Fund’s Finance and Development magazine. This AI transformation will cover areas like optimising processes, boosting efficiency, and increasing productivity. AI-driven technologies are automating repetitive tasks, enhancing accuracy and accelerating processing times.

"Take KIB’s WhatsApp interactive service, for example. AI-powered chatbots are now capable of addressing customer queries with precision, personalisation, and efficiency, making KIB WhatsApp a significant enhancement to the bank’s tech-based solutions and a key part of its digital infrastructure investment journey," Elshareef continued.

Artificial intelligence has also become crucial in the financial sector's data analysis activities (in terms of understanding the individual customer's financial behaviour, before offering personalised products). KIB has been among the pioneers in recognising the undeniable importance of data, along with its security, with the necessity of leveraging it to serve customers.

Kuwait International Bank is tirelessly working to safeguard its customers’ and investors’ data, as evidenced by being awarded the ISO 27001:2022 International Certificate for Information Security Management System in January 2024 for the 10th consecutive year.

A paradigm shift

"A shift in the spatial nature of banks has been another change the industry is witnessing. Today's customers don't feel the urge to visit the bank to conduct their financial activities, since they know they can transfer cash or open accounts, by just performing a few clicks on their smartphone apps. We have another new trend: where "Digital Only" banks are steadily making their presence felt," Elshareef added.

Kuwait International Bank has begun launching many unique services aimed

at serving customers in a new manner. In November 2023, KIB launched the interactive teller machine (ITM), combining the convenience of traditional ATM services with the personalised touch of in-person banking. This cutting-edge machine enables customers to perform a wide range of banking transactions with the assistance of a live, remote teller through high-definition video and audio communication.

During the same month, KIB reopened its head office branch after redesigning it to provide an interactive environment for customers.

Equipped with the latest innovations and modern financial technology, it steers from a typical corporate and banking setting. Then in February 2024, the bank opened a new branch in Kuwait’s Sabah Al-Salem area, featuring the most advanced digital banking devices and interactive screens to cater to the customers’ needs in an innovative approach.

"With increased reliance on technology and the ease of completing most transactions without needing to set foot in a bank branch, the current trend will ultimately lead to more virtual branches. However, this is considered a long-term change in the region and is still in its early stages," Elshareef concluded.

The banking sector's AI investment is expected to reach $97 billion by 2027, as mentioned by the International Monetary Fund’s Finance and Development magazine. This AI transformation will cover areas like optimising processes, boosting efficiency, and increasing productivity

To reduce currency exchange risks, 63.33% of respondents to the PAFTRAC survey expressed a strong desire to see the establishment of a unified African currency

Feature \ Unified Currency

Does Africa need a unified currency?

GBO Correspondent

One of the main barriers to intra-African trade is currency issues. Large contracts often involve US dollars or other non-African hard currencies, despite their scarcity throughout the continent. However, due to volatile exchange rates, notably those against the dollar, trust in many African currencies is low. The continent would become more independent if there were only one African currency, but this is still a long way off.

According to the 2024 Pan-African Private Sector Trade & Investment Committee (PAFTRAC) survey of African trade trends, only 39% of African companies utilise African currencies to finance their cross-border transactions, a significant decline from the 69% reported in 2022.

This is probably the effect of more volatile currency movements in recent years due to the disruption of trade during COVID-19 and the aftermath of Russia's invasion of Ukraine.

Many African currencies have lost value in terms of the US dollar, which has reduced their appeal to recipients. Previously considered an African hard currency, the South African rand's value has experienced significant fluctuations in recent years.

Although there are currently two connected single currencies on the continent, there has been relatively little movement in the many regions that have proposed the creation of regional or continent-wide currencies.

Each of the primarily francophone nations in Central and West Africa uses a different form of the CFA franc. The French treasury backs them and links them to the euro, covering six and eight

To reduce currency exchange risks, 63.33% of respondents to the PAFTRAC survey expressed a strong desire to see the establishment of a unified African currency. Participants in the poll identified these dangers as the main barrier to commerce with other African nations

nations, respectively. Despite the backing of several African presidents, a single currency for the entire continent is the ideal but will be extremely challenging to realise.

During the Common Market for Eastern and Southern Africa (COMESA) Heads of State and Government summit in Lusaka in June 2024, Kenyan President William Ruto said, "Our people cannot trade without worrying about which currency to use. For our people to start trading and integrating, we urgently need to eliminate these and other non-tariff impediments."

Meanwhile, at the annual meeting of the Association of African Central Banks in September, African Union (AU) Commissioner for Trade and Industry, Albert Muchanga said, "We require effective and timely implementation of the macroeconomic convergence criteria to lay the groundwork for the establishment of the African Central Bank, and immediately after that, a single African currency."

Echoing similar views, Wamkele Mene, Secretary-General of the African

Continental Free Trade Area, remarked that Africa is already heading toward a single currency.

"A common African Union currency is critical if we are to eliminate some of the transaction costs related to intra-Africa trade," said Gerald Katsenga, Absa's head of global markets and corporate sales.

He noted that using non-African currencies costs the continent around $5 billion annually. Notwithstanding the advantages, the unified currency has been a stated objective since the founding of the Organisation of African Unity in 1963; therefore, it is unlikely to occur anytime soon.

To reduce currency exchange risks, 63.33% of respondents to the PAFTRAC survey expressed a strong desire to see the establishment of a unified African currency. Participants in the poll identified these dangers as the main barrier to commerce with other African nations.

The creation of a unified currency is, however, fraught with difficulties. First and foremost, each participating nation must guarantee that several national

economic indices, such as inflation and public debt-to-GDP ratios, converge within predetermined bounds. The continent appears to be no closer to accomplishing these goals now than it was in 1991, when the Abuja Treaty stipulated that the "Afro" or "Afriq" would be launched by 2023.

Second, even in cases where the economic benefits have been proven, national governments will be hesitant to relinquish control of their current currencies and monetary policies.

National governments would lose authority if monetary unions were to help lower the cost of financial transactions, remove exchange risk, and lower transaction costs while also assisting in price harmonisation.

Local currencies

The proposal has generated a lot of conversation since the AfCFTA was introduced, though, which implies that it may now be a real possibility—however remote—rather than just wishful thinking. Regional currencies are probably going to be established initially. The push for a single currency for the entire continent will increase once they have demonstrated the advantages of such projects.

While the AU has a long-term goal of introducing a single African currency as part of a monetary union, the Southern African Development Community (SADC), East African Community (EAC), Economic Community of West African States (Ecowas), and Common Market for Eastern and Southern Africa (Comesa) all have plans for monetary unification leading to regional currencies.

A dispute over which nation should house the East African Monetary Institute, which is to act as a forerunner of the East African Central Bank, caused the EAC's proposal for a unified currency to be postponed once more, most recently in August, which was pushed to 2031.

Although ECOWAS had set 2027 as the timeframe for the formation of its one currency, the eco, its member states have yet to meet the convergence requirements.

Due to a lack of progress and the abrupt withdrawal of Burkina Faso, Mali, and Niger from the community, the block decided in September 2024 to halt its single currency plan.

In an attempt to further sever their links with France, the three nations claim that they are thinking of issuing their own currency. According to some, other West African countries ought to work to harmonise their institutions and laws to establish distinct Anglophone and Francophone West African currencies in the coming days, with the ultimate goal of combining the two.

South Africa, Namibia, Lesotho, and Eswatini are all part of the Southern African Common Monetary Area, which is largely controlled by the most developed economy in the region. The Samu, the SADC's single currency, was supposed to be introduced by 2018, but it has fallen short of that goal. Convincing members to meet inflation, interest rate, budget deficit, and debt targets is a challenge for all of these activities.

Combining two or more regional currencies or progressively expanding one may be the next step, even after the regional currencies have been introduced. The first iteration of a continent-wide currency is unlikely to cover all African nations, even if and when it is introduced. Each country will need to clear several budgetary and economic requirements before being permitted to take part, just like in the EU.

PAPSS: A welcome solution

The Pan-African Payment and Settlement System (PAPSS) provides a wonderful way to lower the currency risks involved in cross-border transactions when new currencies are unavailable.

The African Export-Import Bank (Afreximbank) and AU introduced this cross-border payment, clearing, and settlement system in 2022. It enables people, companies, and governments to make instant payments to finish crossborder transactions in over 40 African and

Feature \ Unified Currency

Exchange rate of 12 weakest African currencies to US Dollar

Sierra Leonean Leone

21,021.70

Guinean Franc 8,521.00

Malagasy Ariary 4,430.00 Ugandan Shilling 3,608.40

Burundian Franc 2,809.43

Congolese Franc 2,475.00

Tanzanian Shilling 2,454.00

Rwandan Franc 1,166.48

Malawian Kwacha

1,043.02

Angolan Kwanza 824.69

Nigerian Naira 758.90

Sudanese Pound 599.80

Source: Statista

Banking & Finance

"If I'm in, say, South Africa and I'm paying someone in Ghana, my rands must travel through either Europe (the euro) or the US (the dollar) before returning to Africa as Ghanaian cedi. With PAPSS, we can still make a net settlement in hard currency without using the US dollar or the euro”

- Gerald Katsenga

foreign hard currencies.

PAPSS should assist by expediting the process because unstable exchange rates might cause the conditions of an agreement to worsen between the conclusion of a contract and the actual payment being made. At least 14 central banks, including those in Malawi, Nigeria, Sierra Leone, and Zambia, have joined it, along with more than 50 commercial banks, such as Absa, Ecobank, United Bank for Africa, and Zenith. Although it is currently optional to join, more banks are anticipated to do so soon.

It is believed that PAPSS would also inspire African companies to alter their business practices. Cash in advance is currently the preferred mode of payment, surpassing open account sales, letters of credit, and documentary collection.

The widespread usage of cash in advance discourages intra-African trade because it is the least desirable alternative for buyers and less hazardous for exporters than letters of credit. It is frequently coupled with free-on-board terms, which obligate the buyer to assume ownership of the cargo as soon as it is placed onto a truck, train, or vessel. In these cases, the buyer bears the financial risk of any freight loss or damage.

Gerald Katsenga of Absa claims that the payment setup is an obstacle facing African companies. Using SWIFT to settle intra-African transactions entails paying intermediary bank fees.

"If I'm in, say, South Africa and I'm paying someone in Ghana, my rands must travel through either Europe (the euro) or the US (the dollar) before returning to Africa as Ghanaian cedi. With PAPSS, we can still make a net settlement in hard currency without using the US dollar or the euro,” he said.

Africa still lacks the financial and political will to adopt a unified currency. Decades passed before the EU's member states' economies were sufficiently aligned to introduce the euro.

However, the AfCFTA's success is severely hampered by currency and payment obstacles, hence it is hoped that the PAPSS will be widely adopted and that at least one regional currency will soon be established.

ECOWAS and single currency

In December 2024, news emerged from West Africa that the leaders of the Economic Community of West African States (ECOWAS) have pledged to revitalise efforts to launch the region's single currency, the ECO. The new target date for its implementation has been set for 2027.

Originally scheduled for a 2020 rollout, the ECOWAS member states had to delay the currency's launch due to challenges, including the COVID-19 pandemic. As per the latest reports, ECOWAS leaders have approved the criteria for selecting member states to participate in the ECO launch.

The bloc is currently working on the practical arrangements for launching a new currency, which is expected to significantly boost regional trade, lower transaction costs, and promote economic integration, ultimately leading to greater prosperity.

The ECOWAS Commission and the West African Monetary Agency (WAMA) have been tasked with incorporating new criteria into the protocol for establishing the ECOWAS Monetary Union. Additionally, regional leaders have called for immediate financial contributions from member states and central banks to support the reforms and institutions needed for the single currency project.

Now one of the reasons behind the ECO getting so much prominence is the urge to replace the CFA franc, which is currently used by 14 African states. The CFA franc, whose initials come from the French words for African Financial Community, was launched on 26th December 1945, as a “franc of the French colonies of Africa.”

Fourteen nations, divided into West and

Central African groups, use the currency today. CFA franc covers 155 million people (14% of Africa’s population and 12% of its GDP), according to the International Monetary Fund (IMF).

The currency’s value was initially pegged to the French franc and then to the euro, at a fixed rate of 655.96 CFA francs to one euro. While the Bank of France holds half of the currency’s total reserves, the European country pays an annual ceiling interest rate of 0.75%. The arrangement also guarantees unlimited convertibility of CFA francs into euros and facilitates interzone transfers.

While the supporters of the CFA franc credit the "French Link" behind the currency's credibility and price stability, critics call the arrangement “post-colonial,” preventing countries from exercising monetary sovereignty and enabling France to wield clout in its former colonies.

During the debate, several options were proposed regarding the CFA. These included a symbolic name change and pegging the CFA to a basket of currencies, such as the euro, US dollar, and Chinese yuan, which would better reflect Africa’s main trade partners. Economists also suggested transferring CFA reserves to other institutions and easing the strict monetary policy to promote development and job creation.

So, in December 2019, the CFA franc got its name changed to the ECO, with reforms ensuring that the user countries would no longer have to lodge 50% of their reserves with the Bank of France. France, on the other hand, will also sever institutional ties, withdrawing from the CBWAS board and monetary policy committee.

However, the ECO will maintain its fixed exchange rate with the euro and Paris will keep its role as a backup for the eight WAMU (West African Monetary Union) countries, apart from providing a guarantee, in the form of a line of credit, if the CBWAS faces a currency crunch and needs euros.

The road to a unified African currency will be long and challenging, but it is a journey worth pursuing. By addressing the structural impediments to trade, fostering regional cooperation, and leveraging innovative solutions like PAPSS and ECO, Africa can unlock its vast economic potential. The creation of a single currency throughout the region may still be decades away, but each step taken today brings the continent closer to this transformative goal.

In December 2024, news emerged from West Africa that the leaders of the Economic Community of West African States (ECOWAS) have pledged to revitalise efforts to launch the region's single currency, the ECO. The new target date for its implementation has been set for 2027

Cover Story

JeelPay

Saudi Arabia

'Study Now, Pay Later' transforms education JeelPay’s

JeelPay has emerged as one of the leading companies actively contributing to the digital transformation of educational financing

GBO Correspondent

JeelPay, based in Saudi Arabia, has set itself apart by providing innovative solutions that improve access to educational services and enhance the experiences of individuals and institutions in the country. With its strategic vision and creative approach, JeelPay has become a leading fintech company supporting the field of educational financing.

The company in January 2025 announced obtaining $6.6 million in a Pre-Series A investment round to advance its expansion strategy. With participation from Joa Capital, AlJazira Capital, and other angel investors, the latest investment round will allow JeelPay to support its development plans, with the company being among the latest businesses to gain interest from investors aiming to benefit from the Gulf region’s advancing startup community.

The newly acquired capital will assist JeelPay in providing new financing solutions and solidifying its partnerships with educational institutions, further strengthening the company’s position as a participant in the GCC’s fintech ecosystem. The start-up also has plans to introduce an initial public offering (IPO) in Saudi Arabia by 2027. The company’s commitment to education financing falls in line with the region’s objectives to further expand the fintech and education sectors.

JeelPay's flagship product is its "Study Now, Pay Later" scheme which enables parents to finance their children’s tuition upfront, focusing on minimising financial burden in the education sector. The scheme, which is a first-of-its-kind in the Kingdom, aims to support students and educational institutions by providing a flexible payment model, enabling pupils to continue their education without thinking about financial burdens or additional interest.

In an exclusive chat with Global Business Outlook, JeelPay CEO Faizal Al-Hussayen said, "The academic sector is one of the vital areas JeelPay supports, and this product facilitates educational opportunities and reduces financial obstacles, deepening the company’s role in developing the Kingdom’s education system. Achieving high performance at JeelPay is crucial to maintaining its leadership position. Investing in service development is an essential step to enhancing our competitive ability in the market. This approach aligns with our strategy to meet the ever-evolving needs of the academic field."

JeelPay differs from its industry peers by adopting a proactive approach to addressing challenges, when it comes to addressing financial concerns related to achieving quality degrees, thereby positioning the start-up at the forefront of companies offering advanced technological solutions for the Kingdom's education sector.

With the increasing trend toward digitisation across all sectors, JeelPay has emerged as one of the leading companies actively contributing to the digital transformation of educational financing. This excellence received top recognition in the form of the prestigious Global Business Outlook award, thereby affirming the venture's position as a pioneering company providing solutions that meet the aspirations of the academic sector in the Kingdom.

"We are delighted to win the (GBO) award, which is a great honour for the company and represents an exceptional achievement that reflects the continuous efforts we make to achieve excellence in the field of

financial services. The award is a culmination of our team’s full commitment to quality and innovation. We are proud of this achievement, which drives us to continue developing our services and keeping up with the highest standards. We express our deep gratitude to our customers, who have always been part of our journey towards success," Faizal Al-Hussayen reacted upon winning the GBO Award, as he added, "JeelPay aims to expand its operations locally and regionally, focusing on developing comprehensive financing solutions that meet the needs of the ever-changing market. The company continues implementing well-planned strategies to ensure the delivery of high-quality services, solidifying its position as a trusted financial partner in advancing the educational process."

JeelPay's ecosystem

JeelPay considers investments in education the most important function for the future, and the company strives to make it more accessible and flexible to everyone. To fulfil the vision, the start-up is now aggressively offering innovative solutions for paying tuition fees in instalments easily and without additional interest.

"We collaborate with educational institutions to facilitate access for students and their families to the best academic opportunities, free from financial pressures. We aim to be the leading partner in education financing by providing safe and userfriendly digital payment services. Our mission is to deliver solutions that make education more accessible

to everyone while maintaining the highest level of privacy and security for all our users. We believe that financially empowering students will lead to greater educational opportunities and help them achieve their academic goals," Faizal Al-Hussayen explained his company's mission in the following words.

JeelPay's "Study Now, Pay Later" has simplified educational payments with 12 easy instalments. The service has successfully processed 50000-plus applications, involving students studying at over 250 schools and more than 30 universities in the Kingdom.

Availing of the "Study Now, Pay Later" programme is very easy. All the applicant needs to do is choose his/ her school or university and submit an instalment request. Then, the person will have to review and accept JeelPay’s terms and conditions, before paying the first instalment and continuing with the upcoming payments.

"We at JeelPay are committed to achieving a balance between providing financial freedom and encouraging

responsible spending. In order to achieve the highest standards of compliance with Islamic Sharia, we have established an independent Sharia committee for JeelPay," Faizal Al-Hussayen noted.

Partnering with JeelPay allows Kingdom-based schools to receive payments in advance and efficiently manage expenses for better financial balance and planning. While providing a convenient payment solution for parents, promoting timely payments and reducing the burden of lump sum payments by dividing tuition fees through JeelPay, the start-up also streamlines the payment process to eliminate the need to deal with the fee collection procedure.

To get associated with JeelPay, the institution must be licensed by the Ministry of Education, the National Authority for e-Learning, the Technical Institute, or equivalent regulatory bodies. It is worth mentioning that the partner schools get the opportunity to improve their cash flow by paying tuition fees upfront, which contributes to better financial resource management for these

We at JeelPay are committed to achieving a balance between providing financial freedom and encouraging responsible spending. In order to achieve the highest standards of compliance with Islamic Sharia, we have established an independent Sharia committee for JeelPay

JeelPay

Saudi Arabia

Through "Study Now, Pay Later," JeelPay's customers benefit from tuition fee instalments over 12 months, apart from enjoying the freedom of electronic payment without interest or late fees, while getting payment flexibility that suits their financial needs

educational institutions, apart from attracting more students.

JeelPay facilitates the division of tuition fees into instalments agreed upon by the school and the parents. The agreed-upon instalment plan is then implemented, and parents can make their payments accordingly. The school receives their payment upfront. The company also offers integration options with existing school management systems, making it easier to incorporate JeelPay's payment solution seamlessly into the school's existing processes.

To qualify for JeelPay's "Study Now, Pay Later," the primary applicant must be employed, have a salary of at least 4,000 SAR, have no high financial obligations, and be enrolled in social insurance. The application process is easy. The applicant needs to download the JeelPay app. From there, he/she can browse the contracted educational institutions and choose the suitable institution to apply. While JeelPay services have been made available to non-Saudi residents, the start-up does not charge additional fees to the beneficiaries. However, there may be standard service fees depending on the plan and institution.

How JeelPay works

Through "Study Now, Pay Later," JeelPay's customers benefit from tuition fee instalments over 12 months, apart from enjoying the freedom of electronic payment without interest or late fees, while getting payment flexibility that suits their financial needs.

Educational institutions, upon joining the JeelPay ecosystem, receive advance payments from the start-up, thereby attracting more students by offering a postpaid option, leaving the burden of collecting tuition fees on JeelPay. When negotiating the costs of using the startup's "Study Now, Pay Later" package, JeelPay offers flexible solutions tailored to

the needs of each educational institution. JeelPay also offers flexible solutions for companies to provide educational benefits for employees' children. When it comes to processing and approving the "Study Now, Pay Later" applications, the step takes a short time, and beneficiaries can track the status of their application through the app. Once approved, the student or guardian gets notified immediately. The down payment is calculated based on the total tuition fees agreed upon with the school, and the amount is determined according to JeelPay policies.

"In our pursuit of the highest standards of Islamic Shariah compliance, we have established an independent Shariah Committee for JeelPay, comprising Dr. Yousef bin Abdullah Al-Shubaily, Dr. Ali bin Ibrahim AlZaidan, and Dr. Abdulaziz bin Saleh Al-Demaigi, three of experts in Islamic Shariah. This board ensures that all of our operations and activities are in full compliance with the principles of Islamic Shariah through comprehensive periodic reviews, monitoring all our operations and services to provide the necessary guidance, and offering specialised Islamic jurisprudence consultations. Thanks to this collaboration, we can assure our customers and shareholders that our services are provided with the highest level of quality and adherence to Islamic values," CEO Faizal Al-Hussayen added.

JeelPay's future looks bright

While JeelPay received its BNPL permit from the Saudi Central Bank (SAMA) in January 2024, in November of that year, Altharwah Albashariyyah Co. signed a service agreement with the start-up, a provider of interest-free monthly tuition instalment services.

The agreement will streamline educational payments for clients of Tharwah Academy by offering secure and user-friendly digital payment solutions.

The pact also seeks to enhance educational opportunities, support academic achievement, and provide an exceptional financial experience that boosts operational efficiency and meets client expectations, in the words of JeelPay.

Expect JeelPay to remain a key player in the Saudi fintech sector in the coming days, as the BNPL services continue gaining significant popularity. According to a December 2024 report from leading BNPL provider Tabby, 77% of Kingdombased consumers now use BNPL for essential purchases.

What has been the striking feature of the Tabby study is the fact that the first-time BNPL transactions are twice as likely to be for necessary items rather than discretionary ones, with education and medical expenses remaining at the forefront.

BNPL’s interest-free instalment structure has made it an attractive and Shariah-compliant payment option for many Saudi consumers, a positive shift from traditional credit cards or loans. The solution is also equipped with a low-barrier alternative to traditional credit, as the BNPL application process doesn’t require a high credit score or lengthy approval process, making it accessible to a wider population, particularly younger and lower-income individuals.

Perfectly fitting the abovementioned criteria of the Kingdom's BNPL standards, JeelPay's 12-month payment mechanism of tuition fee instalments, through an online mode (without interest or late fees), along with payment flexibility is what will redefine the financing standards of the Saudi education sector.

Educational institutions, upon joining the JeelPay ecosystem, receive advance payments from the startup, thereby attracting more students by offering a postpaid option, leaving the burden of collecting tuition fees on JeelPay

Cover Story \ Saudi Arabia

Banking & Finance

Waspi Women

Analysis

Waspi women: UK pension reform dispute intensifies

GBO Correspondent

The Waspi women’s struggle highlights injustice caused by mismanagement and poor communication on UK pension reforms

The Keir Starmer-led Labour government’s decision to refuse compensation to millions of "Waspi women" has caused much controversy in the United Kingdom. According to reports, the women missed out due to government inadequacies in communicating changes to the state pension age.

How has the increase in the state pension age disadvantaged women born in the 1950s? And what will happen next? This article will walk you through it.

What is Waspi?

The acronym stands for Women Against State Pension Inequality, a campaign organisation that advocated for pay equity in 2015. It should come as no surprise that a wasp appears in its logo.

Waspi, which means "a woman born between 1950 and 1960 who was disadvantaged by the 1995 Pensions Act, which increased her pensionable age from 60 to 65," was just added to the Collins English Dictionary.

There is substantial disagreement over the number of women who can be properly classified as Waspi women. Including all women born in the 1950s, the potential exceeds 3.5 million.

Waspi and others have long argued that the decision to raise the state pension age for women to match that of men was made and presented in a way that financially penalised many older women and left them struggling to pay for living expenses.

Many stated that they had always planned their finances based on the expectation that they would receive their pension at age 60. Some claimed that it wasn't until they quit their jobs that they realised their state pension age had been increased by a few years.

They contend that insufficient notice prevented them from planning to close the difference in funds.

The Parliamentary and Health Service Ombudsman (PHSO) dedicated years to the investigation. In 2021, the Department for Work and Pensions was found to have handled the reforms in a maladministration-prone manner.

In March 2024, the Department for Work and Pensions' final report recommended compensating those affected.

What caused the change to occur?

The state pension age for women was 60 for many years. The 1995 Pensions Act proposed a gradual increase to 65 between 2010 and 2020. However, the government accelerated the process in 2011.

Consequently, starting in November 2018, the state pension age for women was raised to 65, and by October 2020, it was raised to 66. Many women claimed that when they learnt that their state pension age had increased by four, five, or even six years, their plans were completely upended.

Importantly, the government did not write to surgeaffected women for nearly 14 years after the law's passage

in 1995. The DWP didn't start writing to people about the 1995 and 2011 adjustments until 2009–2013.

Finally, the Keir Starmer administration has made it clear what it will—or won't—do to make things right. The Labour government has sparked significant controversy by dismissing any financial compensation plan for the affected women, despite maintaining secrecy during the general election campaign.

Rachel Reeves, the Chancellor, stated that enhancing public services should take precedence over allocating billions of dollars to compensate Waspi women.

Numerous MPs and activists have responded angrily. Rebecca Hilsenrath, the health ombudsman, criticised the decision to refuse compensation, while the Liberal Democrats called it a "day of shame" for Labour.

The government may have found it easier to reject any payouts because that is unclear. The PHSO's final report suggests that thousands of women may have suffered and deserve compensation.

"Not all women born in the 1950s will have suffered an injustice," it stated, adding that it would cost between £3.5 billion and £10.5 billion to pay out to all 3.5 million or more

Banking & Finance

Waspi Women

Main reasons why voters feel disappointed by the Labour government since the UK general election in 2024 (In Percentage) Withdrawing the winter fuel allowance 28%

Market size of neobanks from 2021 to 2023 (In Billion US Dollars)

poor badly

Source: Statista

women born in the 1950s at the proposed sum of between £1,000 and £2,950 each. Protesters had demanded compensation of at least £10,000.

To what extent have people lost money?

According to one case study, a woman lost £39,000. Another claimed that because her state pension age was six years later than she had anticipated, she lost almost £45,000.

Other women cited even higher figures. According to one, she lost out on about £442,000 in extra income that she would have received if she had continued working rather than quitting. The ombudsman stated, however, that it did not believe that these amounts represented "direct financial loss."

Some 90% of women in the relevant age range were aware of the anticipated changes to the state pension age, according to survey data from 2006.

It also stated that it could not accept that sending postal notifications sooner would have had a significant impact since there was "evidence of the ineffectiveness of unsolicited letters that the ombudsman did not properly account for."

According to ministers, it would be "impossible to deliver a tailored compensation scheme taking individual circumstances into account that is fair, value for money, and feasible," and a general compensation plan costing up to £10.5 billion could not be justified given the current situation of the public finances.

The controversy led to attacks on Keir Starmer during the Prime Minister's questions. Now, activists believe the controversy will get traction and compel the government to reconsider.

With former Pensions Minister Steve Webb stating that "MPs should not take this decision lying down," the Liberal Democrats have assured that they will keep putting pressure on the government.

Downing Street stated that there were "no plans" for a parliamentary vote on whether or not to provide compensation to those impacted. The Waspi women’s plight underscores a profound sense of injustice tied to mismanagement and insufficient communication from the UK government regarding state pension reforms.

At its core, this issue is not merely about financial loss but also about the broader implications of trust, fairness, and accountability in policymaking. For many of these women, their retirement plans and financial security were upended without adequate notice, leaving them scrambling to fill the financial gaps they were unprepared for.

Despite the Department for Work and Pensions (DWP) finding maladministration, the lack of compensation exacerbates the situation. The parliamentary and health service ombudsman’s report, which called for reparations, initially provided hope to those affected.

However, the government’s refusal to heed these recommendations has dashed expectations and inflamed tensions, particularly given the scale of the financial implications for many women born in the 1950s. Individuals are reportedly losing vast sums of money, and the government's prioritisation of public service funding presents a picture of competing priorities, leaving millions feeling overlooked.

The broader implications of this controversy extend beyond the immediate financial ramifications. It raises critical questions about how governments manage transitions in policy that impact large sections of the population, particularly those already vulnerable. The decision to phase in the pension age increase without direct and timely communication for over a decade exemplifies how poor planning can lead to widespread disenfranchisement. While ministers argue that most women were aware of

the changes, evidence suggests otherwise for many, and the government’s reliance on this defence has done little to assuage public discontent.

Media coverage and vocal advocacy by groups like Waspi have fuelled public backlash, placing the government under significant scrutiny. Activists, MPs, and even former ministers have called for justice, emphasising the need for a fair resolution to an issue that has far-reaching implications. For those who devoted years of service to the workforce, only to face financial instability during later years, the current outcome feels like a betrayal of their contributions to society.

Looking ahead, the question remains whether this controversy will compel the government to reconsider its stance. While current indications suggest no plans for further parliamentary debate or compensation, sustained public pressure could force the issue back onto the political agenda. Advocacy groups and opposition parties are likely to keep the issue alive, seeking to rally public support and challenge the government’s position.

Ultimately, the Waspi women’s struggle symbolises a broader demand for transparency, fairness, and respect in the relationship between citizens and their government. The people in power need to prioritise effective communication and fairness in implementing reforms that affect millions.

According to one case study, a woman lost £39,000. Another claimed that because her state pension age was six years later than she had anticipated, she lost almost £45,000

Global lessons for Australia's regional banking issues

In Australia, over 2,000 bank branches have closed since 2017

GBO Correspondent

Australia's Commonwealth Bank announced that it will transition legacy account holders to the newer "Smart Access" account.

A $3 "assisted withdrawal fee" would then be assessed to migrated customers each time they took out cash over the phone, at a bank branch, or the post office. Politicians on both sides of the issue immediately demanded that the decision be reconsidered after the move caused a stir.

The Commonwealth Bank declared that it would put a six-month hold on the account changes for the "10%" of impacted people who it believed would suffer more due to the change. The dispute has brought attention to the struggle for justice to preserve cash and bank branches for the Australians who still depend on them.

Allowing the banks to impose additional fees on their own is politically unacceptable. A cash mandate for necessities and a potential new rural services levy to maintain branches are two of the government's other proposals.

What are the alternatives, how might a levy operate, and why is it crucial to maintain cash access and bank branches, especially in the regions?

Losing access hurts the regions

In Australia, over 2,000 bank branches have closed since 2017, and rural areas have seen several losses. Foot traffic has decreased due to demographic shifts, population declines in rural areas, a shift to digital banking, and a continued decline in the use of cash.

Source: Statista

Branches themselves require expensive upkeep. It is costly to transfer money across the nation, often prohibitively so for Australia's more remote regions, on top of rent, wages, and security fees.

Closing a bank branch in a rural area can have a major negative social and economic impact on the community, making it less competitive with urban areas.

ING and Macquarie, as well as Commonwealth and Westpac, are among Total liabilities of Commonwealth Bank of Australia from the financial year 2015 to 2024 (In Billion Australian

Vulnerable groups should be especially concerned because they might not have access to adequate internet or dependable transportation options. For small businesses, losing a local banking presence can have detrimental effects as well. If credit assessors in urban areas don't comprehend the needs of rural businesses, credit access will be limited.

Some businesses that rely heavily on cash must have access to branches to manage their cash "float," which is used for small expenses and change provisions. Businesses in industries like tourism or those situated in remote areas with erratic network access—which is necessary to run EFTPOS machines—also need dependable access to cash.

The Treasury reportedly considered imposing a new tax on Australian banks to support regional banking. According to the plan, each bank's levy payment would be determined by how many regional branches and ATMs it operated concerning the amount of household deposits it held.

As one might anticipate, preliminary estimates published in the Australian Financial Review indicate that banks with extensive regional networks would benefit most from such a programme.

Bendigo and Adelaide Bank are among them. They are projected to receive roughly $200 million annually under the plan. NAB and Rabobank may also benefit financially because of their significant agribusiness presence.

the banks that would inevitably suffer the most from their online-only presence. These banks are estimated to be able to pay more than $60 million annually in individual levies. It might be more than $100 million for Westpac.

Could there be unintended consequences?

Some worries imposing a fine on banks that operate exclusively online could exacerbate the existing lack of competition in this sector.

Currently, the big four banks in Australia dominate more than 75% of the mortgage and deposit market.

Furthermore, there's a potential consequence that these bank fees might be passed down to customers, leading to increased mortgage rates or decreased interest rates on deposits.

A study conducted on German banks in 2011 demonstrated that on average, regional banks increased their lending rates by approximately 0.14% in response to the levy. This is equivalent to more than half of the typical 0.25% shift in the RBA cash rate.

Lessons from around the world

Besides Australia, other countries also face difficulties associated with regional banking. Direct levies are not common. Access to banking in regional areas has been provided and maintained through several additional policies centred on regulatory mandates.

India has experimented with requiring branch networks to be maintained in rural and smaller towns.

According to the US Community Reinvestment Act, banks must serve local communities or risk having their growth ability restricted. In Canada and the United Kingdom, banks must provide alternatives, like mobile banking, and consult with communities before closing branches.

In South Africa, banks are rewarded

with points under a formal framework for economic inclusion and empowerment, in addition to being required to provide services in remote areas.

The post office has been essential in providing basic banking services in several countries, much like Australia Post's Bank@Post programme. Extending the Bank@Post programme, after consulting with communities, may be one of the best strategies to sustain regional banking.

Additionally, Australia Post may benefit from expanding banking services. By sending fewer letters, its branches are also experiencing a decrease in foot traffic. One potential structure for this kind of growth is the banking hub system in the United Kingdom, where large banks are part of a non-profit organisation and function through the Post Office.

Meanwhile, Commonwealth Bank announced a new travel booking service that more than 6 million eligible customers can use through the CommBank app to search, book,

and pay for flights and hotels from hundreds of thousands of hotels and hundreds of airlines.

With millions of users already, the global online travel agency Hopper powers the new CommBank digital experience, which focuses on offering a variety of cutting-edge travel features.

According to the most recent CommBank iQ Cost of Living Insights Report, spending on travel experiences has increased. Spending increased by 4% over the previous year, driven by a 16% annual increase in spending on online travel reservations.

Customers most frequently set savings goals related to travel through the CommBank app. Consumers can lower their out-of-pocket travel expenses by using their CommBank Awards points to pay for their purchases using a credit card that accrues points.

For any hotel reservation, qualified CommBank Yello customers will receive 10% back in travel credits as part of a special Travel Booking offer.

Currently, the big four banks in Australia dominate more than 75% of the mortgage and deposit market. Furthermore, there's a potential consequence that these bank fees might be passed down to customers, leading to increased mortgage rates or decreased interest rates on deposits

News Banking & Finance

ECB officials support more rate cuts

European Central Bank (ECB) policymakers have backed additional interest rate cuts, suggesting that reductions in 2025 are now virtually certain.

Traders increased their bets on rate cuts after the ECB had already cut rates four times in 2025 in response to weak growth and declining inflation. There are also concerns about United States President Donald Trump imposing trade tariffs on the bloc.

"The direction is very clear. The pace we will see depends on data, but a gradual move is certainly something that comes to mind at the moment," ECB President Christine Lagarde told CNBC in Davos about interest rates.

Bank of Singapore

Lagarde argued against more rapid policy easing, stating that she did not believe the European Central Bank would fall short of its 2% inflation target and that it was necessary to monitor the effects of the weak euro, which could raise the price of energy and other imported goods.

"There will be interesting phenomena that we will watch. The exchange rate, for instance, will be of interest and may have consequences," she said.

Klaas Knot, the conservative leader of the Dutch central bank, appeared to support rate cuts in January.

Bank of Singapore adds six new hires in Dubai

In an effort to enhance its advisory and product offerings, Bank of Singapore, one of the largest private banks in Asia, announced the addition of six new employees in Dubai.

Zeena Abou Elnaja joined the investment advisory team at Bank of Singapore, which is a division of Oversea-Chinese Banking Corporation, the second-largest lender in Singapore, from Swiss bank Julius Baer.

Additionally, the private bank announced the arrival of Mehvish Ayub from State Street Global Advisors as a senior specialist covering managed solutions and alternatives in the region. Anish

Mehta, a product specialist on the FX (foreign exchange) advisory desk, and Brandon Chee, a product specialist covering equity and structured products advisory, were also welcomed by Bank of Singapore.

Fatima Al Zadjali was named director of marketing and communications, while Yasmine Omari was appointed head of wealth planning for the bank's operations in Dubai.

continue to build our Dubai hub's presence across the region."

Ranjit Khanna, Bank of Singapore's head of private banking for Europe and the Middle East and CEO for Dubai, said, "These hires are key for us strategically as we

Meanwhile, the bank is also preparing for its upcoming Global CIO Advisory Summit in Dubai in February after the inaugural event was held in Singapore in 2024.

Omani banks’ profits up 15% to $1.35B in 2024

In 2024, Omani banks listed on the Muscat Stock Exchange (MSX) reported net profits of RO522.6 million, a 15.2% increase from RO453.5 million in 2023.

The rise in profitability is attributed to Oman's economic growth and the improved performance of several key industries, which supported banks' profits as they expanded lending for both individuals and economic projects.

Bank Muscat was in the lead, making the biggest profit at RO225.5 million, up from RO212.4 million in 2023, according to the Oman News Agency.

Sohar International Bank followed closely behind, reporting a net profit of RO100.2 million, a significant increase from RO70.3 million in 2023.

Bank Dhofar reported net earnings of RO43.6 million, while the National Bank of Oman reported a profit of RO63 million. Other banks included Bank Nizwa with RO18.1 million, Oman Arab Bank with RO30.4 million, and Ahlibank with RO41.6 million.

The combined assets of the seven listed banks grew by 7%, rising from RO38.8 billion in 2023 to RO41.6 billion by December 2024. The sector was once again led by Bank Muscat, which had RO14.04 billion in total assets.

Personal Finance

ADIB launches Gulf's first personal finance tool

Abu Dhabi Islamic Bank (ADIB) has launched the ADIB Money Management Tracker, the region’s first personal finance management tool, designed to empower customers with enhanced management and insight into their financial activities.

The collaboration with Lune, a UAE-based fintech company, aims to revolutionise the way customers manage their personal finances.

Fernando Plaza, Chief Digital Officer at ADIB, said, "The ADIB Money Management Tracker represents our customerfocused strategy, blending innovation and technology

to meet the evolving needs of our customers. This tracker empowers individuals to regain control of their financial lives in a straightforward and impactful manner."

The ADIB Money Management Tracker aligns with ADIB's 2035 vision, reflecting its customercentric approach and commitment to innovation. The tool offers customers an easy-to-use, comprehensive, intuitive, and user-friendly platform to monitor and manage their finances, allowing them to effortlessly track income and expenditures while identifying trends in their spending habits.

Industry

Ecuador

Analysis

Ecuador’s energy crisis calls for urgent reform

GBO Correspondent

The blackouts triggered by unreliable hydropower have significant ripple effects across Ecuador

Ecuador is grappling with a changing climate that is dramatically affecting its energy sector. The Andean nation has long relied on hydropower, a once-reliable source of clean energy that leveraged the country's abundant water resources.

However, severe droughts in recent years have exposed the limitations of this dependency, leading to blackouts, public unrest, and growing calls for reform. The Ecuadorian government is at a crossroads: adapt by diversifying its energy mix or continue to face the consequences of an unreliable hydropower system.

The hydropower conundrum

Hydropower has always been the backbone of Ecuador's energy policy. Approximately 80% of the country's electricity is generated from hydropower, which was once seen as both economically viable and environmentally sustainable. Ecuador's mountainous terrain, crisscrossed with rivers and high-altitude reservoirs, made hydropower an obvious choice.

However, recent environmental changes have shifted this dynamic. Ecuador has experienced prolonged droughts, reducing water levels in critical reservoirs and impacting power generation. Reservoirs that once brimmed with water now face alarmingly low levels, unable to generate enough energy to meet demand.

This year's severe drought, exacerbated by global climate shifts, has led to unprecedented power cuts, leaving millions without electricity for hours. Entire cities have plunged into darkness, and industrial activity has ground to a halt.

While hydropower is renewable, it is inherently dependent on steady, predictable rainfall. Unfortunately, in the face of changing climate patterns, reliable rainfall has become rare. Seasonal fluctuations have become harder to

Analysis \ Hydropower

predict, and water scarcity has undermined Ecuador’s ability to maintain a stable energy supply.

Economic

consequences

The blackouts triggered by unreliable hydropower have significant ripple effects across Ecuador. Economic output has been stifled by sporadic power availability, with industries forced to halt production during electricity cuts. Power outages have led to economic slowdowns that affect employment and national GDP.

The instability has also affected public services, including healthcare and education. Hospitals have reported difficulties maintaining care during blackouts, with emergency procedures often delayed or cancelled.

Educational institutions, especially in rural areas, have also suffered; students struggle to follow online classes or study during the nighttime.

This energy crisis has triggered public protests. Frustration has been boiling over as citizens face increasing

difficulties in managing their daily lives. What began as local protests has grown into a nationwide movement pushing for systemic change.

Given these disruptions, many voices in Ecuador are calling for a diversified energy strategy. Environmental experts, business leaders, and activists alike urge the government to reconsider its over-reliance on hydropower and explore alternative energy sources.

Diversification could take many forms

Solar and wind energy are attractive alternatives, with significant solar potential in Ecuador's coastal and Andean regions. Advances in technology have made solar panels more efficient, and consistent sun exposure could make solar a sustainable energy source. Wind energy also holds promise, especially in coastal areas and highland plateaus with strong wind currents.

Geothermal energy is another viable option. Ecuador, situated on the Pacific Ring of Fire, has geothermal activity

that could provide a stable, clean energy source. Studies suggest geothermal reserves could replace a significant portion of hydropower generation.

However, these changes require financial investment and political will. Building infrastructure for wind turbines or solar farms means overcoming bureaucratic hurdles and securing funding. The government, already dealing with fiscal challenges, must balance these investments with other pressing needs.

The role of fossil fuels

In Ecuador's energy matrix, fossil fuels still play a huge role, mainly as a backup during hydropower failures. During the recent crisis, thermal power plants were used for emergency power. However, these are not sustainable longterm solutions due to environmental concerns and Ecuador’s climate goals.

Fossil fuel reliance also poses economic risks, as global oil and gas price fluctuations can increase energy costs, straining the economy. A pivot back to fossil fuels would undermine Ecuador's carbon reduction efforts and global climate commitments.

Ecuador faces significant obstacles in energy diversification, primarily financing. The economy, battered by low oil prices, political instability, and the COVID-19 pandemic, leaves the government with limited fiscal space to

GDP for electricity and water supply in Ecuador from 2020 to 2023 (In Million US Dollars)

2020 1,789 2021 1,752 2022 1,979 2023 2,177

Source: Central Bank of Ecuador

invest in solar, wind, and geothermal infrastructure.

Public perception also poses challenges; many Ecuadorians view hydropower as a symbol of self-sufficiency. Shifting away from this identity requires educating the public on the risks of hydropower dependency and the benefits of diversification. Engaging local communities and providing incentives are crucial to gaining support for new energy infrastructure.

Regional lessons in energy adaptation

Ecuador is not the only country in Latin America grappling with the effects of climate change on energy systems. The broader region is experiencing similar issues, as prolonged droughts affect countries like Brazil and Colombia that also rely heavily on hydropower. There are lessons Ecuador can learn from its neighbours.

Brazil has diversified its energy mix significantly over the past decade, supplementing hydropower with wind, solar, and bioenergy. These additional streams have provided a buffer during times of drought, reducing the impact of water shortages.

Chile, on the other hand, has aggressively pursued solar energy, taking advantage of the Atacama Desert’s high solar irradiance. Today, Chile is a leader in renewable energy in South America, demonstrating that a coordinated national effort, coupled with international investment, can yield significant rewards in energy resilience. Ecuador could look to Chile as a model for leveraging geographic advantages for a diversified energy approach.

The time has come for Ecuador to rethink its energy strategy. Heavy reliance on hydropower has proven unsustainable in an era of climate uncertainty, and the consequences—frequent blackouts, public discontent, and economic stagnation—are impossible to ignore. Moving towards a diversified energy system is no longer just an option but a necessity.

A multi-pronged approach

Ecuador needs a multi-pronged approach: government incentives for renewable projects, partnerships with private investors, and international cooperation for funds and technology. Educating local communities about the benefits of new energy sources is crucial for successful implementation. Tackling both financial and social aspects is key to overcoming energy insecurity.

International bodies like the World Bank and the InterAmerican Development Bank can provide critical funding

and expertise. Public-private partnerships are also essential for the capital and innovation needed to drive this transition.

Recent protests and shortages are a wake-up call— Ecuador must diversify to ensure energy stability and sustainable development. By embracing wind, solar, and geothermal energy, Ecuador can build a resilient energy future that benefits both its economy and its people.

Government shows intent

In October 2024, the Ecuadorian National Assembly approved the draft "Organic Law to Promote Private Initiative in Electricity Generation" to encourage private investment in the energy sector. The law creates a legal framework for long-term investments by facilitating the development and implementation of energy projects using various renewable energy sources and technologies.

Thermal projects will be required to present transition plans toward cleaner technologies to reduce their environmental impact, while hybrid projects are encouraged to promote a sustainable transition.

Private companies, which had to participate in public tenders for power projects of more than 10 MW, will now be allowed to develop power projects up to 100 MW by submitting permits to the Ministry of Energy. Additionally, existing private power projects may request a review of their

permits to increase their capacity to 100 MW under the new criteria.

Power companies will also be allowed to import natural gas for self-consumption to replace the use of other hydrocarbons in productive activities in the country.

Decentralised autonomous governments will be required to implement waste management systems to generate energy from garbage processing.

Furthermore, the Ministry of Energy and the national oil and gas company Petro Ecuador will call for tenders for the exploitation and repowering of identified gas fields, within a maximum period of 90 days.

It is undeniable that the path to a stable, diversified energy future will be challenging, requiring investments and shifts in public perception. However, with proper planning, international support, and a commitment to change, Ecuador can emerge stronger. By diversifying its energy mix, the country can ensure a consistent power supply and establish itself as a leader in the region for sustainable energy practices.

Analysis \ Hydropower

Startup world 2025: Saudi VCs thrive globally

Feature

GBO Correspondent

As 2025 progresses, Saudi Arabia's venture capital (VC) and startup ecosystem continues to excel on the global stage, reinforcing its status as the foremost hub for innovation and investment in the Middle East and North Africa (MENA) region.

The Kingdom’s forward-thinking strategies, substantial financial backing, and rapidly growing entrepreneurial landscape are making it one of the most attractive destinations for venture capitalists and startup founders.

Saudi Arabia’s remarkable ability to attract significant funding rounds, such as Zension Technologies’ $30 million Series A and the $150 million Global Ventures III tech fund, is a testament to its thriving ecosystem. These investments and the burgeoning startup scene are integral to Saudi Arabia’s broader economic goals under its Vision 2030 initiative.

VC space witnesses massive movements

A standout development in Saudi Arabia’s VC space in early 2025 is the $30 million Series A funding round raised by Zension Technologies, a Saudi-based startup founded in 2018 by Khalid Saiduddin and Nikos Anastasiadis. Zension offers an innovative solution in the consumer electronics space, providing protection, extended warranties, and guaranteed buyback services for mobile devices and other consumer electronics.

The Series A funding round was led by Wa’ed Ventures, the venture capital arm of Saudi Aramco, with additional participation from Sumitomo Corporation from Japan and regional investor Global Ventures.

This influx of capital will enable Zension to expand its service offerings and further solidify its position in the competitive markets of Saudi Arabia and the UAE. In particular, the company plans to launch a new service, Zaam, in the first quarter of

The Saudi government’s support for startups aligns with its larger goal of promoting entrepreneurship and encouraging the growth of SMEs in various sectors

Funding distribution among Saudi startup founders based on their founding team sizes

One30%USD 506 Million15%

Two 44%USD 1.70 Billion53%

Three18%USD 728 Million22%

Four & Above8%USD 316 Million10%

Source: Saudi Arabia Founders Report

Source: Statista

2025, which will likely expand its footprint and offer more comprehensive solutions to customers in the region.

Zension’s success reflects a broader trend of Saudi Arabia investing heavily in high-potential tech startups that provide valuable consumer services. With major retailers, telecommunications companies, and original equipment manufacturers already integrated into its model, Zension is well-positioned to capitalise on the growing demand for mobile device protection in the region.

In another significant move, Saudi Venture Capital (SVC) has announced its backing of Global Ventures III, an earlystage venture capital fund focusing on technology investments across Saudi Arabia, the MENA region, Sub-Saharan Africa, and parts of Asia.

This fund, which exceeds $150 million in size, aims to support startups in sectors such as supply chain technology, agritech, enterprise software as a service (SaaS), artificial intelligence (AI), and deep tech.

SVC, a subsidiary of SME Bank under Saudi Arabia’s National Development Fund, was established in 2018 to help stimulate and sustain funding for startups across their growth stages. Through its partnership with Global Ventures, SVC aims to catalyse venture investments in Saudi-based startups, especially in their early stages.

According to Nabeel Koshak, CEO of SVC, the Kingdom’s venture capital landscape continues to expand, reflecting a strong market opportunity for emerging

technologies and exceptional founders. This partnership underscores the Kingdom’s commitment to building a robust and innovative ecosystem that is positioned to lead in the region.

Noor Sweid, the founder and managing partner of Global Ventures, echoed Koshak’s sentiment, emphasising the vast market opportunities available in Saudi Arabia. Sweid noted that the country has become a key player in the global startup ecosystem, with emerging technologies thriving thanks to the country’s support for innovation and entrepreneurship.

Another promising Saudi-based startup making waves in early 2025 is Revie, an interior design and renovation platform that has secured $2.5 million in seed funding. Founded in 2024 by Ibrahim Abu Khadra, Revie offers an end-to-end solution for residential and commercial renovations, connecting customers with vetted service providers and facilitating the entire renovation process from design to execution.

Led by Sanabil Venture Studio by Stryber, the funding will help Revie further develop its platform and expand its technological capabilities to cater to the growing demand for renovation services in Saudi Arabia.

By providing a seamless user experience and building a scalable foundation, Revie is well-positioned to become a leader in the Kingdom’s rapidly expanding interior design and home renovation market.

The Saudi government’s support for startups like Revie aligns with its larger goal of promoting entrepreneurship and encouraging the growth of small and medium enterprises (SMEs) in various sectors. With home renovations becoming increasingly popular in the Kingdom, platforms like Revie are capitalising on the rising demand for efficient, high-quality design and construction services.

Vreal, a Saudi-based startup specialising in augmented reality (AR) and virtual reality (VR), has successfully raised a pre-

seed investment round. Founded in 2022, Vreal focuses on providing e-commerce businesses with the ability to convert products into 3D models in just 30 seconds, thanks to its advanced scanning technology.

The pre-seed funding was secured from the numu Angels Investment Community, a group focused on supporting innovative startups in Saudi Arabia. With this funding, Vreal intends to expand its applications to various industries, including interior design, real estate, tourism, and heritage preservation.

The increasing popularity of AR and VR technologies in the consumer space presents an exciting opportunity for Vreal to leverage its technology and offer new experiences for businesses and consumers.

By tapping into Saudi Arabia’s growing interest in these innovative technologies, Vreal is poised to be a key player in the future of e-commerce and beyond.

What’s happening in the MENA startup scene?

MilkStraw AI, a UAE-based artificial intelligence startup, recently secured $600,000 in pre-seed funding. The company, founded in 2024 by Jawad Shreim, specialises in AI-powered software solutions that help businesses optimise and automate their cloud infrastructure costs.

The pre-seed funding round was led by Flat6Labs, with participation from Angel Spark, Beyond Capital, and various angel investors. With this investment, MilkStraw aims to expand its operations across the MENA region, helping businesses optimise

their cloud spending and reduce costs using AI-driven solutions.

As enterprises in the MENA region increasingly rely on cloud infrastructure for their operations, AI solutions like those offered by MilkStraw will play a crucial role in helping companies optimise their resources and drive cost efficiencies.

This investment reflects a broader trend of increasing support for AI and machine learning startups in the region, as Saudi Arabia and its neighbours continue to invest in emerging technologies to drive economic growth.

In another key development, Mintiply Capital, a UAE-based advisory and investment banking firm, has formed an exclusive partnership with US-based Fuel Venture Capital. This collaboration aims to launch a Special Purpose Vehicle (SPV) targeting early-stage startups across the Gulf Cooperation Council (GCC) region, with a particular focus on the UAE.

The SPV will provide targeted funding and resources to emerging startups in the region, driving innovation and supporting the development of the UAE’s entrepreneurial ecosystem. This partnership is part of the UAE’s broader strategy to foster a dynamic startup environment that contributes to the country’s economic growth and diversification.

ReNile, an Egypt-based agritech startup, has secured $450,000 in funding to further develop its platform. Founded in 2017 by Hazem El-Tawab, ReNile provides farmers with a full stack solution that includes monitoring systems, emergency alerts,

The Saudi government’s support for startups like Revie aligns with its larger goal of fostering entrepreneurship and encouraging the growth of small and medium enterprises (SMEs) in various sectors

In 2024, Saudi Arabia once again led the MENA region in venture capital investments, raising $750 million across 178 deals. This marks the second consecutive year that the Kingdom has retained its position as the top destination for venture capital in the region

control systems, and analytics to improve farming practices. The platform supports data-driven farming, enabling farmers to implement best practices and enhance efficiency and yield.

Agritech solutions like those offered by ReNile are becoming increasingly important in the MENA region as countries seek to boost food security and agricultural sustainability. The funding will allow ReNile to expand its reach and continue to provide farmers with the tools needed to adapt to changing agricultural demands.

Growth in MSME lending

The growth of micro, small, and medium enterprises (MSMEs) in Saudi Arabia is another critical indicator of the country’s evolving economic landscape.

According to the Saudi Central Bank, credit facilities extended to MSMEs reached SR329.23 billion ($87.8 billion) in the third quarter of 2024, reflecting a 22.6% year-onyear increase.

This growth aligns with the government’s ambitious goal to allocate at least 20% of financial institutions’ lending portfolios to MSMEs, as part of Saudi Vision 2030.

This increase in MSME lending highlights the Kingdom’s commitment to supporting entrepreneurship and ensuring that businesses at all stages of development have access to the capital they need to thrive.

In 2024, Saudi Arabia once again led the MENA region in venture capital investments, raising $750 million across 178 deals. This marks the second consecutive year that the Kingdom has retained its position as the top destination for venture capital in the region. Although overall VC funding in MENA saw a decline, Saudi Arabia’s strong performance is indicative of its continued dominance in the regional startup ecosystem.

The Kingdom’s success is driven by a combination of factors, including government-backed initiatives, the rise of innovative tech startups, and a growing number of international investors seeking opportunities in the Kingdom. This trend is expected to continue as Saudi Arabia remains a key player in the broader Middle Eastern and global startup ecosystem.

Global trends and diverse ecosystems

While Saudi Arabia is asserting its dominance in the MENA region, the global investment landscape is becoming increasingly dynamic. The Asian Financial Forum in Hong Kong provided a platform for a broad spectrum of venture capitalists and entrepreneurs to discuss the future of global tech investments.

In particular, the discussion highlighted a rising trend of investments in emerging technologies like AI, fintech, and automation, with VC firms across the globe vying for a stake in the next big breakthrough.

Ronald S. Simorangkir, CEO of Mandiri Capital Indonesia (MCI), the venture capital

arm of Indonesia's state-owned Bank Mandiri, spoke about the evolving nature of the investment environment in Southeast Asia. While MCI remains focused on its home market, Indonesia, Simorangkir noted the growing importance of aligning investments with national agendas and the potential for long-term value creation.

His firm’s investments, which currently target Indonesian startups, are geared toward fostering the country's development by focusing on sectors like fintech, which have seen significant growth in recent years. Simorangkir also spoke about the need for synergies between technology investments and the broader business ecosystem. For example, Mandiri Capital’s focus on data compression technologies is designed to improve safety and security, an essential concern for archipelagic nations like Indonesia, where vast geographical distances can make connectivity a challenge.

Similarly, Anna Fang, the CEO and founding partner of ZhenFund, a Chinabased venture capital firm, shared her insights on the firm’s strategy, which is based not on specific sectors or themes but on identifying the right individuals—founders who exhibit unique potential. ZhenFund’s approach has led to a remarkable increase in deal volume, with a 60% rise in the number of deals in 2024 alone.

Fang highlighted the firm’s focus on four main categories of founders: young talent, tech-savvy individuals, serial entrepreneurs, and young innovators. The firm’s ability to identify promising founders, regardless of their sector, has allowed ZhenFund to stay ahead of the curve and continue making investments in high-growth ventures.

Across the globe, startup ecosystems are becoming increasingly diverse, and the focus is shifting to long-term sustainability and technological impact rather than just rapid returns. This trend, exemplified by Saudi Arabia’s AI investments and the diverse interests of firms like Mandiri Capital and ZhenFund, reflects a more nuanced approach to venture capital.

By prioritising long-term value creation and strategic alignment with broader economic goals, these firms are positioning themselves as key players in the future of global tech investments. Whether in the MENA region, Southeast Asia, or China, the commitment to supporting the next generation of transformative technologies and visionary entrepreneurs is clear.

Kingdom gets Newlab boost

Newlab, a global venture platform for critical technology startups, will expand into the Kingdom in 2025, through an integrated public-private partnership involving multiple public sector agencies and leading industry partners.

The initiative marks a key milestone in Newlab’s mission to accelerate the commercialisation of critical technologies by aligning cross-sector partners, infrastructure, capital, and resources in strategic geographies around the world.

Newlab Riyadh will attract leading critical-tech startups to Saudi Arabia and accelerate commercialisation outcomes that will translate into measurable economic impact in the Kingdom and the broader region.

The company will establish an initial beta space in Riyadh in 2025 to serve as an anchor for the founding startup ecosystem while commencing the development of a larger hub, which will come to life in 2026.

The innovation hub, apart from providing essential technical infrastructure for startups and partners to convene and collaborate, will also feature signature Newlab elements like flexible workstations, private studios, labs, workshops, and event areas designed for large-scale presentations and product launches.

Newlab will also launch sectorfocused and challenge-based programmes designed to attract leading startups, drive targeted investment activity, and enable structured collaboration between startups and potential end-users in the region.

While Saudi Arabia is asserting its dominance in the MENA region, the global investment landscape is becoming increasingly dynamic. The Asian Financial Forum in Hong Kong provided a platform for a broad spectrum of venture capitalists and entrepreneurs to discuss the future of global tech investments

Is 'Robo Price-Fixing' hurting US' housing sector?

GBO Correspondent

Many households have been facing severe cost burdens, with an all-time high of 11.6 million struggling with housing costs that consume more than half of their income

Millions of people across the United States are paying far more in rent than they can reasonably afford, with rental housing prices rising far faster than household income.

According to studies, while in the pre-COVID days, it was common to find a house that cost roughly three times a buyer's annual income, things have changed drastically since the pandemic, with home prices rising a whopping 47% since early 2020.

Median home sales prices in 2023 were about five times the median household income, according to tabulations by the Harvard Joint Centre for Housing Studies.

High prices and high mortgage rates have "left homeownership out of reach for all but the most advantaged households," says Daniel McCue, a senior research associate at the centre.

The study discovered that in nearly half of metro areas, buyers must make more than $100,000 to afford a median-priced home; in 2021, that was the case in only 11% of markets. In 2022, 22.4 million American households were spending more than 30% of their income on rent and utilities, up from 20.4 million in 2019.

Many of these households have been facing severe cost burdens, with an all-time high of 11.6 million struggling with housing costs that consume more than half of their income. In May 2024, the median US asking rent rose 0.8% to $1,653—the highest level since October 2022. That was the second consecutive increase following 11 months of decreases. Rents rose 0.5% on a month-over-month basis.

While several factors are driving the high cost of rentals, including increasing demand, a dwindling supply of low-rent units, the rising cost of capital to build new rentals, and regulatory barriers that further restrict the construction of multifamily units, the latest data shows typical asking rent is now costing $2,009 across the United States, according to the October 2024 rental market report from Zillow, a real estate website.

Robo Price-Fixing under the scanner

However, a surprising factor has emerged behind the rise in rental prices: landlords were found colluding with the help of technology. In August 2024, the Justice Department went after RealPage, accusing the company of selling software to landlords that allows them to collectively set prices—the illegal practice of price-fixing.

The civil suit found that the "unlawful scheme" was decreasing competition among landlords in apartment pricing and monopolising the market for commercial revenue management software that landlords use to price apartments. RealPage’s alleged conduct also deprived renters of the benefits of competition on apartment leasing terms and harmed millions of Americans.

"The complaint alleges that RealPage contracts with competing landlords who agree to share with RealPage non-public, competitively sensitive information about

their apartment rental rates and other lease terms to train and run RealPage’s algorithmic pricing software. This software then generates recommendations, including on apartment rental pricing and other terms, for participating landlords based on their and their rivals’ competitively sensitive information. The complaint further alleges that in a free market, these landlords would otherwise be competing independently to attract renters based on pricing, discounts, concessions, lease terms, and other dimensions of apartment leasing. RealPage also uses this scheme and its substantial data trove to maintain a monopoly in the market for commercial revenue management software. The complaint seeks to end RealPage’s illegal conduct and restore competition for the benefit of renters in states across the country," the Justice Department stated.

In the words of Roger Alford, a former official in the Justice Department’s Antitrust Division and a law professor,

Industry Housing

Number of housing units and annual percentage increase in the United States from 2014 to 2023 (In Millions)

"The Federal Trade Commission defines price-fixing as an agreement, conspiracy, or combination among competitors to raise, fix, or otherwise maintain the price at which their goods or services are sold."

According to him, any agreement that restricts price competition violates antitrust laws. Alford cited examples of price-fixing agreements, including commitments among competitors to hold rental charges firm, while either adopting a standard formula for computing prices or adhering to a minimum fee or price schedule.

"So, when competitors share proprietary, confidential current price information—directly or indirectly through an intermediary—to stabilise or control industry pricing, they have crossed the line into illegal collusion, according to the FTC. That is the case in major portions of the US rental market, the Justice Department argues," he stated.

How RealPage crossed the line

In August 2024, the Justice Department and eight states filed a lawsuit in a federal court in North Carolina against RealPage, accusing the company of selling software to landlords that collects non-public information from competing landlords and uses that combined information to make pricing recommendations.

algorithm, according to the Justice Department suit. The Justice Department declared that RealPage replaces competition with coordination. It substitutes unity for rivalry. It subverts competition and the competitive process. It does so openly and directly—and American renters are left paying the price," Roger Alford explained.

"The case is unusual in that, unlike a typical price-fixing cartel, the landlords used RealPage’s algorithms to dramatically improve their ability to engage in pricefixing. Algorithmic price-fixing is typically easier and more effective than other types of cartel behaviour. The software can easily aggregate massive amounts of proprietary data, optimise cartel gains, monitor realtime deviations from cartel pricing, and minimise incentives to cheat," he added.

Since 2022, RealPage and various property managers have been named as defendants in more than 30 class action lawsuits alleging that the venture's software is used to unlawfully fix rental prices. Federal courts, in Alford's opinion, tend to be sympathetic to such arguments, as shown in the denial of a motion to dismiss the case in one of the private lawsuits filed against RealPage.

Source: Statista

Landlords using the software were inputting the rental prices they wanted to charge, and the software was aggregating all the data from the company’s customers. The software’s algorithm was then making recommendations for what to charge. These "recommendations" were generally higher than the current market rate, and as most customers were taking the recommendations, it pushed prices higher in the market.

"Even if landlords retain some authority to deviate from the algorithm’s recommendations, it is illegal for competing landlords to jointly delegate key aspects of their pricing to a common

"In that case, the court held that a pricefixing agreement could exist as a matter of law. Landlords provided RealPage’s algorithmic system with their proprietary commercial data, knowing that RealPage would require the same from their competitors and would use all of that data to recommend rental prices to all of the company’s clients," he added.

Some landlords reportedly seemed to be aware that by sharing confidential price information with RealPage’s software, they were facilitating the unlawful monitoring and raising of rental prices.

The Justice Department complaint quoted a landlord commenting on RealPage’s software, "I always liked this product because your algorithm uses proprietary data from other subscribers

to suggest rents and terms. That’s classic price-fixing."

RealPage argued that its software "simply helps landlords make data-driven decisions" in a competitive market, claiming its tools are designed to reflect market conditions and optimise occupancy rates, rather than engaging in price-fixing.

What's next?

In December 2024, RealPage reportedly received notice about the Department of Justice's Antitrust Division closing its criminal investigation into pricing practices in the multifamily rental housing industry. However, their trouble is far from over. An analysis from the White House Council of Economic Advisers discovered recently that American renters spent an extra $3.8 billion in 2023 because of pricing

algorithms used by landlords.

While the report put hard numbers to the accusations against RealPage, it also agreed that, even if these algorithms were pushing up rents, they wouldn't be the primary driving force behind rising housing prices, since the country is experiencing a broader housing affordability crisis.

Now, it remains to be seen whether the Biden administration pursues the charges against RealPage or if it addresses the bigger picture: increasing demand, a dwindling supply of lowrent units, the rising cost of capital to build new rentals, and regulatory barriers.

Since 2022, RealPage and various property managers have been named as defendants in more than 30 class action lawsuits alleging that the venture's software is used to unlawfully fix rental prices. Federal courts, in Alford's opinion, tend to be sympathetic to such arguments, as shown in the denial of a motion to dismiss the case in one of the private lawsuits filed against RealPage

Airline disruptions: What are your legal rights?

Airlines had a successful start to the summer of 2023 after a turbulent few years due to COVID-19 lockdowns in most countries. In June 2023, the northern hemisphere saw a 30% increase in passengers over the previous year. However, devastating wildfires in popular tourist destinations like Greece, Maui, Tenerife, and Canada, in addition to air traffic control strikes, caused further disruptions to air travel in July and August.

More than 25% of UK-based flights were

Under British law, passengers affected by these incidents have a legal right to care and support from airlines following Brexit. A Conversation research study claimed that, when travel is interrupted, people often don't know what their rights are. GBO Correspondent

cancelled on one of the busiest travel days of the year, leaving thousands of passengers stranded due to the most recent issue: a UK air traffic control fault. According to UK Transport Secretary Mark Harper, it will take days to resolve.

Airlines have long struggled to comply with consumer protection regulations

Number of scheduled passengers boarded by the global airline industry from 2014 to 2023 (In Millions) 2014 3,248 2015 3,351 2016 3,532 2017 3,688 2018 3.682 2019 3,739 2020 3,326 2021 3,673 2022 3,736 2023 3,882

Source: Statista

While consumers need more information about their rights in these situations, online travel agents and consumer advocacy group Which? have also urged UK Prime Minister Keir Starmer to give the Civil Aviation Authority (CAA), the airline regulator, more authority to penalise airlines that fail to assist customers affected by disruptions.

Currently, the regulator must file a lawsuit to directly and independently fine an airline. In comparison to airline regulators in other countries, the CAA's enforcement authority is limited. Which? wants the CAA to have the authority to impose direct penalties on airlines for failing to promptly inform passengers of their rights and what to do in the event of a flight disruption, assist with rerouting if a flight is cancelled, or provide a prompt refund.

Uncertainty about air

passengers'

legal rights

Airlines have long struggled to comply with consumer protection regulations. However, the widespread flight cancellations during the COVID-19 pandemic and numerous airlines' failure to reimburse certain passengers brought the issue to the forefront.

We have studied the pandemicrelated flight cancellation experiences of passengers and the level of awareness among travellers regarding their legal rights and avenues for recourse. During the COVID-19 crisis, public awareness was undoubtedly raised by media coverage from personalities like Martin Lewis, the personal finance expert on ITV, and online data from consumer advocacy groups like Which?

However, the Conversation research indicates that a large number of passengers are still unsure of what to do if an airline violates their rights. Additionally, many are unaware of all the options available to them when seeking redress. Passengers who make reservations

through online travel agencies instead of directly with the airline face even more difficulties.

Many participants in focus groups stated that they relied on travel insurance or trusted the airlines to take care of them. However, certain situations are not always covered by travel insurance, and some airlines have fallen short of the expectations customers have of them.

How to seek redress for travel disruptions

First and foremost, you should contact your airline directly if they have cancelled your flight or if you need to seek compensation for any other reason. There are alternative options if you don’t receive a response or are not satisfied with the one you receive.

For instance, "alternative dispute resolution" (ADR) organisations can help mediate disputes with airlines. However, our research revealed that passengers were unaware of the existence of the two ADR organisations in the UK: AviationADR and the Centre for Effective Dispute Resolution (CEDR).

Furthermore, ADR rulings are not legally binding, and not all airlines participate in these programmes. Which? has called for the introduction of a mandatory aviation ombudsman to fix "the broken complaints system," despite CEDR's homepage reporting high demand.

A court action against an airline is another alternative, though it may be difficult if the airline is headquartered overseas. The study results also indicated that passengers often lack the time and confidence necessary to file a small claims lawsuit.

Another deciding factor for action may be cost. Our research suggests that when the cost of a family vacation exceeds thousands of pounds, passengers are more likely to file a claim. Specialised claims companies have begun offering to file claims on behalf of passengers

over the last ten years. These companies typically have user-friendly websites that can quickly determine if a claim is worthwhile. However, using these companies comes at a cost.

Although going to court is considered a last resort, Which? discovered in March of this year that passengers were owed £4.5 million due to unpaid County Court Judgements (CCJs) and attempts by passengers to use bailiffs to collect money owed by airlines.

However, research revealed that using Section 75 of the Consumer Credit Act was one of the most effective ways to secure a refund. This section allows you to file a claim with the bank or credit card issuer you used to purchase your airfare.

What about the airline regulator?

If consumers continue to rely on settling their conflicts with airlines individually, the channels for seeking redress for travel disruptions will remain ineffective. This puts the airlines' strong interests and larger coffers up against weaker customers. For this reason, the UK's CAA needs more authority.

The UK government has not yet taken action, despite the Department for Transport's January 2022 reform proposal. A more robust regulator would assist travellers caught in crises like the summer travel disruptions, which left thousands of people facing delays and cancellations.

Meanwhile, AirHelp has revealed the top and worst airlines in the world in its eagerly awaited 2024 AirHelp Score report. This thorough examination of passenger feedback, punctuality statistics, and customer complaints from 54 countries is reflected in the rankings. With demand for air travel reaching all-time highs, these rankings are crucial to the airline sector. The Transportation Security Administration processed more than three million passengers, demonstrating significant growth. Consequently, there is mounting

pressure on airlines to continue providing high-quality service while handling previously unheard-of volumes.

AirHelp CEO Tomasz Pawliszyn asserted that these rankings should inspire airlines to "constantly listen to passenger feedback."

As passenger rights continue to be unclear, especially after incidents like flight cancellations, consumers are calling for stronger regulations and better support from airlines. The Civil Aviation Authority’s limited enforcement power is a major concern, prompting advocacy for greater authority to penalise non-compliant airlines. As air travel demand soars, it’s clear that stronger consumer protections and better airline accountability are needed to ensure fair treatment for travellers.

Airlines have long struggled to comply with consumer protection regulations. However, the widespread flight cancellations during the COVID-19 pandemic and numerous airlines' failure to reimburse certain passengers brought the issue to the forefront

Ostool Alnaqil: Transforming the transportation industry

Ostool Alnaqil Company, established in 2009, is a subsidiary of the Saudi Automotive Services Company (SASCO). Headquartered in Riyadh, the company started its operations with a fleet of 20 trucks to serve SASCO by transporting fuel to its gas stations. It rapidly grew to cover broader regions across the Kingdom with remarkable expansion.

Today, Ostool Alnaqil Company operates through an integrated operational network in different offices at Riyadh, Dammam, Jeddah, Abha, Jizan, Qasim, and the north region of KSA. With ambitious plans for continuous

expansion, the company aims to reach the largest possible customer base and deliver services while implementing global quality standards and best practices in the road transport industry.

Integrated logistics services

Ostool Alnaqil focuses on providing various integrated logistics services, including fuel transportation, while meeting the energy sector’s needs with high efficiency. Another key solution provided by the venture is known as “Dry Cargo Transportation,” under which it offers tailored solutions for companies, to ensure

smooth, secure transport and customer satisfaction.

The company is also providing its industrial solution in water transportation, apart from supporting companies and individuals in emergencies with quick and efficient services through the initiative called “Roadside Assistance and Small Vehicle Transport.”

“We are dedicated to solidifying our position as a trusted transport partner by offering innovative services focused on speed, safety, and efficiency. Our vision centres on ensuring customer satisfaction through reliable and advanced services that aim to establish

complementary partnerships with individuals and businesses alike,” Ostool Alnaqil commented.

Integration with SASCO

Ostool Alnaqil plays a key role in delivering comprehensive logistics solutions. As part of the SASCO ecosystem, it provides fuel transportation to SASCO stations while expanding its services to a wider client base and more regions across the Kingdom.

The SASCO subsidiary is committed to leveraging the latest technologies to enhance its operational processes. From real-time shipment tracking systems to advanced transport management platforms, these tools give its team full control over its shipments and enhance transparency and trust, making transportation experiences smoother and more secure for its customers and partners.

Commitment to sustainability “Ostool Alnaqil’s efforts reflect its dedication to sustainability through the use of modern, fuel-efficient vehicles and the reduction of carbon emissions.

By adopting best environmental practices, these initiatives align with Vision 2030’s goals of creating a sustainable and environmentally friendly economy,” the company continued.

The company has remained fully committed to quality and innovation, striving for continuous growth in the dry cargo transport sector in Saudi Arabia. By combining operational efficiency, advanced infrastructure, and a highly skilled workforce, the company delivers services that meet and exceed customer expectations.

Plans and aspirations

Ostool Alnaqil aims to broaden its range of services beyond its current offerings. The company is actively working to expand its logistics services to meet the evolving needs of the market.

The company envisions becoming the top choice for all partners seeking reliable, efficient, and value-added transport and logistics solutions.

Ostool Alnaqil recently achieved ISO 9001:2015 – ISO 14001:2015 – ISO 45001:2018 certificates, apart from increasing its fleet size by 45% compared to 2023.

EDEN to launch three projects in MENA region

EDEN Development, a leading Egyptian real estate company, has unveiled plans to simultaneously execute three major projects in Egypt and Georgia, with a target of EGP 6 billion in sales. In 2025, the company plans to invest EGP 1 billion as part of its aggressive expansion strategy. Egypt's North Coast is the location of the first project: a luxurious resort named Sequoia.

The resort was designed by the Mona Hussein Design Office in collaboration with IDA, drawing inspiration from the stunning natural landscapes of Zanzibar, the Maldives, and Bali. To launch Sequoia, EDEN Development partnered with businessman Ahmed Al-Mansoori in an Emirati-Egyptian collaboration in 2024, investing more than EGP 3 billion.

The second project, the E One Business Complex, is located in the Downtown district

of the New Administrative Capital. This mixed-use development houses commercial, administrative, and medical spaces within a tower that features a ground floor, ten upper floors, and four parking levels.

Meanwhile, EDEN Development is also launching City Centre Gldani, a mixed-use project that blends luxury and modernity, in Tbilisi, the capital of Georgia.

First Avenue reveals $48.8M sale, deals

Sarah Al Lu'lu'a Real Estate Company and First Avenue Real Estate Development Company have signed a SAR 57 million real estate brokerage agreement.

According to a bourse disclosure, the two Saudi entities signed the sale and purchase agreement (SPA) on January 23, 2025.

The agreement is expected to improve the financial performance of the Tadawul-listed company in 2025 and covers the provision of real estate brokerage services for 30 days.

First Avenue sold the La Perle West project and land in the Al Shatei district of Jeddah for a total

Egypt's North Coast is now home to the first project, a luxurious resort known as Sequoia

of SAR 125.96 million. This deal also includes the sale of First Avenue’s 2,747-square-metre property in Jeddah’s Al Shatei neighbourhood.

The La Perle West project, a six-story office tower with 2,743 square metres of commercial space, including eateries and cafes, is also part of the sale.

Payment will be made on an interim basis through the issuance of investment units in the fund, equal to the agreed value, following the completion of regulatory processes.

The company’s shares were traded on the Saudi Exchange's Parallel Market (Nomu) in October 2024 (Tadawul). This strategic move aims to further strengthen the company’s financial position and expand its market presence.

Vincitore completes Dubai wellness project handover

Vincitore Benessere, the first iconic wellness residential landmark in Dubai, has been successfully delivered, according to Vincitore Realty, a leading boutique designer developer.

With an emphasis on health and well-being, this one-of-a-kind masterpiece is the first real estate project to be completed in Dubai in 2025, according to the developer.

Vincitore Realty has announced that by transitioning from "price per square foot" to "wellness per square foot," it is establishing a new standard for luxury wellness living in Dubai. This shift is set to usher in a new era that will fundamentally transform

the real estate market in the region.

Located in Arjan, close to the Dubai Miracle Garden, the AED 400 million project stands as a prime example of Vincitore's commitment to providing life-changing experiences that uplift the mind, body, and soul, with its classic elegance and resortstyle amenities.

Senior officials present at the grand inauguration of Vincitore Benessere included Majid Saqer AlMarri, CEO of the Real Estate Registration Sector; Majida Ali Rashid, CEO of the Real Estate Development Sector at the Dubai Land Department; and Mohammed Ali Al Badwawi, Acting CEO of the Real Estate Regulatory Agency.

LEOS unveils $129M Dubailand project

International real estate and lifestyle developer LEOS Developments has announced the opening of Weybridge Gardens 4, a 15-story residential complex with 294 apartments, ranging from studios to four-bedroom sky villas, each featuring a private pool and an atmosphere of blooming luxury.

The project, with a gross development value of AED 475 million ($129.3 million), offers British standards of quality, top-notch amenities, nature-inspired architecture, a sky beach with a Tuscan feel, and cascading jacuzzis.

The LEOS Boxing Academy and LEOS Dance Studio are two of the distinctive lifestyle amenities featured at Weybridge Gardens 4.

The rooftop, called "Rebirth," is inspired by the hot springs of Tuscany and provides a tranquil haven with wellness facilities and expansive city views, according to the statement.

The project also plans to launch 30 unique, luxurious four-bedroom sky villas. These spacious villas will feature custom interiors, spa-like bathrooms, and private pools.

In addition to maximising natural light and space, the design of the sky villas offers stunning views of the skyline, providing the perfect setting for contemporary luxury.

Circular Economy

Analysis

Circular Economy: The path to trade resilience

GBO Correspondent

Policy frameworks must penalise environmental degradation and encourage investment to advance the circular economy

In response to US President-elect Donald Trump's increasingly hostile rhetoric and threats of imposing a 25% tariff on Canadian goods, Canada and its allies must urgently investigate new international trade policy. Trump's proposed tariffs have the potential to hinder trade and harm the economy if left uncontrolled.

The World Trade Organisation and its members can lessen the potential negative effects of impending American measures by diversifying commerce with other countries and promoting international trade through the circular economy.

A variety of stakeholders, including consumers, businesses, governments, non-governmental organisations, and academia, must collaborate to transition from a linear economy (buy, use, throw away) to one that recycles materials and energy.

In addition to damaging the environment, wasting energy and resources is getting more and more costly, which makes creating a circular economy crucial. To solve these economic, security, and environmental issues, industries must prioritise the development of circular systems. For the benefit of our natural environment and financial stability, a cross-sector effort is required to enhance circularity.

Growing international trade

One of the most visible examples of the effects of waste is the five ocean garbage patches, which are massive, floating islands of trash. Municipal services in wealthy countries often hide trash from view, making it easy to ignore its detrimental impact on the environment. However, many developed countries, like Canada, export their waste to less developed countries that are ill-prepared to deal with the issue.

Occasionally, the actions of other countries can force

developed nations to adapt. China's restrictions on some waste types forced developed countries to manage their own waste instead of exporting it. This has created opportunities for creative commercial activities in addition to improved recycling.

In the opinion of Deborah de Lange, Associate Professor, Global Management Studies, Toronto Metropolitan University, the countries must process waste materials and creatively transform them into items for sale. Therefore, the circular economy makes it possible for consumers to buy new, environmentally friendly products.

Increasing global trade by using garbage instead of discarding it gives rising and developing economies the chance to participate in more international trade. They can start new businesses that take advantage of the circular economy's worldwide business opportunities. For emerging and growing economies, having multiple sources of revenue and employment is more crucial than ever.

Additionally, the circular economy stimulates corporate

activity and the creation of new companies by encouraging collaboration among firms. It will create employment opportunities and save materials and energy.

International trade and circularity

Europe has led the way in advancing the circular economy as part of the European Green Deal. Italy is a particularly noteworthy example.

Italian legislation has promoted the development of eco-industrial parks, where local companies collaborate on sustainable business practices, such as selling material outputs to one another to reduce waste.

Italy has also developed initiatives on research, clean production, distribution, and post-consumption waste to integrate circularity into its economy. For example, Italy used corporate tax incentives to encourage the use of recycled and biodegradable materials in products and packaging while penalising virgin materials used in construction.

Economy

Circular Economy

Research programmes like Circular Threads, which target the Northern Italian textile industry, involve even the fashion sector. Through the Circular Consumption Charter, consumer groups have voiced their support, with the backing of eighteen Italian consumer associations.

“However, in order to connect investing in circular business models to actual financial rewards, European enterprises still require more accurate economic data,” De Lange stated.

Using data from all 27 European Union (EU) countries over several years, she found a direct link between the use of circular materials and global exports of the three main types of waste: plastics, metals, and chemicals.

The EU monitors the annual consumption rates of circular materials in each country. In the opinion of de Lange, greater national circularity across all material categories is the driving force behind the international trash and scrap trade. In other words, countries with higher rates of circularity engaged in more international trade.

Boosting innovations

Policy frameworks must penalise environmental degradation and encourage investment to advance the circular economy. A carbon fee, for instance, not only deters pollution but also provides funding for circular practice research and innovation. Governments can encourage

companies to switch from linear to circular business models by coordinating fiscal policies with environmental objectives.

Other countries, including Canada, can follow the guidelines provided by the European Union's Circular Economy Action Plan, which includes policies like expanded producer responsibility and ecodesign standards. In addition to reducing waste, policies requiring manufacturers to return and recycle their products at the end of their lives also encourage product design innovation.

A new generation of professionals can be prepared to adopt sustainable behaviours by incorporating the concepts of the circular economy into academic programmes and career training. Public awareness campaigns can encourage consumers to seek eco-friendly items, creating a marketdriven push for circularity.

New technologies that are revolutionising the circular economy include blockchain, artificial intelligence, and sophisticated recycling techniques. Blockchain guarantees openness and traceability in material movements, while artificial intelligence helps optimise supply chains to reduce waste. Chemical recycling is one example of an advanced recycling technology that may convert complex waste into reusable basic materials.

For example, the Clean Resource Innovation Network (CRIN) in Canada is using technology to increase resource efficiency and lower industrial emissions. Countries can establish themselves as leaders in the global circular economy by funding such projects.

Creating a Circular Economy

“My research indicates that both separately and in combination, circular economic policies, research, and innovation significantly improve nations' industrial circular capabilities. The most effective of these strategies turned out to be strict environmental laws that charge polluters,

much like carbon taxes,” De Lange commented.

EU promised to make data on circularity among its member states publicly available, with the potential of the nations benefitting from this level of collaboration. Cross-sector partnerships have also resulted in the establishment of successful eco-industrial parks.

A significant advancement that would enable more cross-border circular trade would be the expansion of these hubs. Canada is already a leader in this area. In the 1970s, Dalhousie University's Ecoefficiency Centre helped establish this park, making it one of the largest in northeastern North America. There are over 2,000 firms and 30,000 employees. At the park, cooperative agreements have been used to trade metals, packaging, and rubbish from wooden pallets.

Burnside Park is just one example of how industrial ecology could contribute to Canada's economic stability. To reduce its dependency on the United States, Canada must diversify its businesses and eco-industrial parks into other markets. Europe has become a vital partner as a result of initiatives like the EU's Horizon Europe programme that promote global connections.

The World Trade Organisation may serve as a welcoming forum for growing discussions and initiatives focused on promoting the circular economy in order to distribute prosperity, improve the environment, and reduce tensions globally.

While consumers may favour a circular economy, businesses require substantial financial incentives to invest in this transformation. De Lange’s research offers compelling evidence that successful international markets reward companies that adopt circular practices. In light of possible global economic instability, Canada and its allies have a strong incentive to diversify and enhance the global economy through international trade in the circular economy.

Initiatives such as Halifax's Burnside Industrial Park position Canada to take the lead in the circular economy. To reduce dependency on the United States, Canada must expand its eco-industrial efforts into international markets, leveraging partnerships with nations like those in the European Union.

Policy measures such as carbon taxes, extended producer responsibility, and eco-design directives are critical to fostering circularity. Public awareness, education, and innovation will further motivate change, creating opportunities for businesses that adopt sustainable practices to thrive in profitable global markets. This approach enhances environmental protection, economic stability, and international cooperation.

New technologies that are revolutionising the circular economy include blockchain, artificial intelligence, and sophisticated recycling techniques. Blockchain guarantees openness and traceability in material movements, while artificial intelligence helps optimise supply chains to reduce waste

The rise of China's influence in Africa

In an effort to strengthen ties amid rising global political and economic instability, China recently invited over 50 African leaders to Beijing for a conference

GBO Correspondent

The Chinese Foreign Minister Wang Yi recently travelled to Africa on his first overseas assignment of the year. His agenda covered civil society interchange and economic collaboration in addition to the Middle East problem. Beijing, which is insatiably hungry for raw minerals and energy, is beginning to place more and more emphasis on Africa.

The world’s second-largest economy has close ties of cooperation with African nations following World War II. Beijing made friends and positioned itself as a representative of these developing nations, which would eventually join the so-called "Global South."

Africa has consistently been a dependable source of natural resources since China started its policy reform and opened its economy 45 years ago. Beijing has invested in social services like healthcare and education as well as infrastructure in exchange.

For instance, China funded the 1,860-kilometre (1,100-mile) train line in the 1970s that connected Kapiri Mposhi in Zambia with the port city of Dar es Salaam in Tanzania. The Uhuru Railway, also known as the TanzaniaZambia Railway Authority (TAZARA), passes through the most significant copper mining region in Africa. Thus, China imports copper from Zambia through a self-constructed rail network. This trend was observed in a large number of other infrastructure projects.

President Xi Jinping claimed that Sino-African relations were the model for the whole community at the time in a video message, stating that "both sides have built an indestructible fraternal bond in the struggle against imperialism and colonialism."

Marina Rudyak, a Sinologist at the Institute for East Asian Studies at the University of Heidelberg in Germany, noted that the foundation of the partnership between China and Africa today is reciprocity.

“China provides commerce, investment, and development assistance to African nations. And in exchange, China gets political support in relationships between financial flows and African states' UN voting patterns on matters important to China," the speaker stated.

A report by the Friedrich Naumann Foundation in Germany claims that China has built or renovated more than 15 African legislative buildings. By maintaining these parliament buildings over time, China will reach out to cross-party legislative elites.

China, on the other hand, disputes this allegation and charges the West with placing political requirements on development assistance, such as the advancement of democracy, human rights, and good governance.

The African nations themselves do not, however, perceive any rivalry between China and the West.

Annual flow of foreign direct investments from China to Africa from 2014 to 2023

(In Million US Dollars)

Rudyak suggests that while the West provides various resources, China builds infrastructure, and Africa takes what it needs, creating a win-win scenario without selfishness involved.

According to Philipp Gieg, a specialist in international relations at the University of Würzburg in Germany, China has distinct normative concepts.

He asserted that Beijing's objectives drive Chinese aid, not China's dictates on what Africa should accomplish. That's what it says right out loud. Gieg told DW that when China talks about "win-win," it means both a victory for Africa and a win for China.

During his visit to Africa shortly after the China-critical candidate William Lai Ching-te emerged victorious in Taiwan's presidential election, Chinese Foreign Minister Wang discovered political unity.

According to Beijing, Taiwan is part of China and will eventually be "reunited" with the mainland.

Prime Minister Victoire Tomegah Dogbe declared, "Togo favours the reunification of China. In the globe, there is only one China.”

The president of Ivory Coast, Alassane Ouattara, stated that Taiwan is an essential component of China.

Isolating Taiwan on the global scene is a part of Beijing's plan for the autonomous

island. For instance, Taiwan only has formal diplomatic ties with 11 nations.

Establishing dependency

As a key element of Jinping's Belt and Road Initiative (BRI), which forms a foundation of Chinese foreign policy and provides loans for major infrastructure projects in developing countries, China is expanding its economic partnership with Africa.

The Forum on China-Africa Cooperation (FOCAC), a summit held every three years with leaders from China and Africa, was last hosted in Senegal in 2021. In an effort to strengthen ties amid rising global political and economic instability, China recently invited over 50 African leaders to Beijing for a conference.

Ahead of the summit, a number of the continent’s leaders, including Presidents Cyril Ramaphosa of South Africa and William Ruto of Kenya, had one-on-one meetings with their Chinese counterparts and were given tours of Beijing and other key places in China's development.

“China wants African politicians to understand that we are in the same boat, we are all victims of Western imperialism," Prof. Munene noted.

Paul Frimpong, executive director of the Africa-China Centre for Policy and Advisory in Ghana, states that Western nations and oil-rich Gulf states are working to balance China's influence in Africa.

"There is a tremendous interest and rivalry in and around what Africa's potential is. It escapes the gloom of the US and EU's continuous aid focus with its concomitant conditionality and preaching," he added.

China has been successful in its diplomacy during the past 20 years. It has become Africa's biggest trading partner out of all the nations in the world.

The Xi Jinping led-government purchases a fifth of Africa's exports, which primarily consist of metals, mineral products, and petroleum, according to data from the International Monetary Fund

Source: Statista

(IMF). Since 2001, exports have increased fourfold in US dollars.

The IMF stated that China is also the single largest supplier of imports of machinery and manufactured goods for African nations.

However, the trade balance generally favours China significantly. In his oneon-one encounter with President Xi, Mr. Ramaphosa attempted to address this.

Following the event, a joint statement stated that "China demonstrated its willingness to support job creation, highlighting recruitment conferences for Chinese firms to boost local employment in South Africa."

Kenya, in contrast, is looking for more loans despite having a massive debt load that consumes about two-thirds of its annual income. This has recently sparked protests in the streets when the government attempted to impose extra taxes in order to close the budget gap.

To connect Kenya's coast with neighbouring Uganda, William Ruto is working to secure funding for several infrastructure projects, such as the completion of the Standard Gauge Railway (SGR), the construction of roads and dams, the creation of a pharmaceutical park, and the development of a technologically

advanced transportation system for Nairobi.

Four years ago, China stopped funding the disputed SGR that connected Nairobi to Mombasa, the port city. As a result, rail tracks ended in a field outside of Naivasha, a lake city.

China has frequently faced criticism for its transactions as a significant bilateral lender to numerous African nations, especially in the past few years as several African nations, including Ghana, Zambia, and Ethiopia, have encountered financial difficulties.

The banker

Chinese Foreign Minister Wang Yi reaffirmed in a recent essay that one of his nation's goals in foreign policy is to resist what he terms "hegemonic bullying" by the United States.

According to Wang Yi, among China's circle of growing power partners which also includes Russia is Africa.

However, following ten years of loans focused on large-scale African government projects fuelled by the BRI, China has begun retooling its African approach.

Large African cities such as Addis Ababa, Nairobi, Luanda, and Lagos

The Xi Jinping led-government purchases a fifth of

Africa's exports, which primarily consist of metals, mineral products, and petroleum, according to data from the International Monetary Fund (IMF). Since 2001, exports have increased fourfold in US dollars

The need for renewable energy technologies, such as solar or wind power, to reduce dependency on dirty energy sources has arisen from the global climate issue. A few years ago, China realised it had an opportunity to take the lead in this emerging market

have all gained from new trains built by Chinese contractors and loans. However, many governments in these cities have taken on debt that threatens their political and economic stability.

With over $6 billion, China was Zambia's biggest creditor when it went into default on its foreign debt in 2020.

Former US assistant secretary of state for African affairs Witney Schneidman said, "African countries should press this week on the Chinese being more transparent on debt reduction."

Nonetheless, he thinks China cannot bear all the blame and looks forward to working with the other G20 nations.

"Every stakeholder has a responsibility to assist in resolving this; we require substantial debt reduction," Schneidman added.

Analysts claim that China is currently displaying a risk-averse strategy to reduce its exposure to Africa.

According to Yunnan Chen, a research fellow at the Overseas Development Institute in London, there will be efforts to increase collaboration around more recent issues in addition to the multibilliondollar commitments to trade and infrastructure.

She predicted that "green cooperation will be one of the headlines" because of China's desire to increase demand for its vast electric vehicle, battery, and solar energy industries.

This is particularly true given that the IMF projects that China's economic development will remain sluggish and advises African nations to adjust by strengthening their regional economic cooperation and enacting structural changes to boost domestic income.

“Above all, African leaders must overcome the velvet rope element of these summits to forge their own deals, set their own terms, and host their own parties," Dr. Van Staden asserted.

The energy game

Eight years after the global financial crisis began in 2007 and two years after China unveiled the BRI, the energy financing industry peaked in 2015. Contextualising this peak is another significant benchmark. The year 2015 saw the adoption of the Paris Climate Agreement by 196 parties. In the same year, Egypt received public funding to enable the construction

of what, if finished, would be Africa's second nuclear power station. Finance has no discernible pattern following its peak in 2015. Finance had a severe fall in 2017, a recovery in 2020, and then another dip in 2021, most likely as a result of the COVID-19 pandemic's effects on African economies.

The need for renewable energy technologies, such as solar or wind power, to reduce dependency on dirty energy sources has arisen from the global climate issue. A few years ago, China realised it had an opportunity to take the lead in this emerging market.

Africa is the home of several essential minerals required to develop renewable technologies, including lithium, copper, and cobalt, which are essential components in the production of batteries.

Thus, a rush for these minerals is occurring in Africa due to the race for green energy, with China, the United States, and Europe leading the way.

Five countries make up the majority of China's mining footprint in Africa, which is far less than that of the West: Guinea, Zambia, South Africa, Zimbabwe, and the Democratic Republic of the Congo (DRC).

The DRC, Zambia, and Zimbabwe are the front-runners in Africa's new green energy competition. They have the largest reserves of lithium, copper, and cobalt as well as Africa's copper belt.

In particular, the DRC is significant. Together with lithium, it possesses sizable quantities of cobalt and high-grade copper. Cobalt is a metal that is exceptionally hard, magnetic, and has a high melting point. It's an essential component of lithium batteries. The country produces over 70% of the world's cobalt, with smallscale and artisanal mining accounting for 15% to 30% of production.

China is the largest foreign investor, controlling around 72% of the DRC's operational copper and cobalt mines, which include the world's second-largest cobalt mine and fifth-largest copper mine, Tenke Fungurume Mine.

The top cobalt mining firm in the world is CMOC Group, based in China. With the help of the recently opened Kisanfu mine, production might reach 70,000 tons. About 70% of the world's cobalt and 60% of its rare earth production in 2019 came from the DRC and China.

China has also made investments in Zimbabwe as part of the global competition for green energy. Africa's largest reserves of lithium, a necessary component for the manufacture of batteries for electric vehicles, are found in Zimbabwe.

In 2023, Prospect Lithium Zimbabwe, a Zhejiang Huayou Cobalt affiliate based in China, inaugurated a $300 million lithium processing facility. With an annual production of about 200 million tonnes worldwide, it can process 4.5 million tonnes of hard rock lithium into concentrate for export.

China is also making investments in Morocco's first large-scale battery plant on the continent.

The world's largest undeveloped highgrade iron ore deposit, located in Guinea, is likewise open to Chinese development. Steel, which is produced from iron ore, is essential to the renewable energy industry in several ways.

Several nations have agreed to share the Simandou iron ore resource. Among the participants is Chinalco, a massive steel manufacturer. The first production is scheduled for early 2026.

Through extensive investments in infrastructure, social services, and mineral extraction, China has positioned itself as Africa's largest trading partner and a key player in the green energy race. However, this relationship is not without controversy, as concerns over debt sustainability and political dependencies grow.

For African nations, the challenge lies in balancing these foreign influences while striving for self-determined development and sustainable economic partnerships.

China has also made investments in Zimbabwe as part of the global competition for green energy. Africa's largest reserves of lithium, a necessary component for the manufacture of batteries for electric vehicles, are found in Zimbabwe

Analysis

Pizza Budget: Taxing fast food in a broken economy

GBO Correspondent

The majority of people who live in Nairobi's slums still cannot afford permanent homes or healthcare

The announcement of a new tax on fast food items like pizza, burgers, French fries, and doughnuts, presented in November 2024 by Zimbabwe Finance Minister Professor Mthuli Ncube as the 2025 National Budget Proposal, stood out among the numerous proposals as both ridiculous and concerning. It also suggested that the odd fixation on taxing almost everything might be signalling a serious economic crisis in Zimbabwe. Income tax, value-added tax (VAT), capital gains tax, property tax, excise duties, import and export taxes, dividends from state-owned enterprises (SOEs), and royalties from the exploitation of natural resources are the main and most reliable sources of funding for governments worldwide. These conventional revenue sources are intended to support national security, social services, infrastructure development, and civil servants.

Nonetheless, the Emmerson Dambudzo Mnangagwa government appears to be spending as little as possible, as evidenced by Zimbabwe's recent budget's reliance on taxing fast food. This is not only a show of indifference toward a population already experiencing extreme poverty, but it also shows that the government is running out of viable sources of income with an estimated 70% of the population living below the poverty line.

Insufficient revenue from traditional sources asks, "Why can't the Mnangagwa regime generate income through established means like income tax, VAT, or SOE dividends?" The answer is the systematic collapse of these sectors, which has been fuelled by years of misguided policies, corruption, and economic mismanagement.

A complete mess

The government's main source of income, income tax, is in terrible shape because only around 10% of Zimbabweans

have formal jobs. Given the high unemployment rate, it is not surprising that income tax contributions have decreased to almost nothing. Income tax collection is now all but impossible due to the informalization of the economy.

The government cannot effectively monitor or tax the informal sector, which currently accounts for about 90% of the economy, because it is largely unregulated. Despite plans to tax small grocery stores, boutiques, and auto parts dealerships, as well as announcements that informal traders must register with the Zimbabwe Revenue Authority (Zimra), enforcement is still absurd because of the state's inability to handle the situation. The difficulties also affect VAT, another important source of income.

Poverty and inflation have severely reduced Zimbabweans' purchasing power, leaving little left over for sizable VAT contributions, which has been further weakened as the majority of the African country’s economic activity takes place informally.

The traditional channels for collecting value-added tax

have essentially dried up in a situation where high taxes, inconsistent policies, unstable currency, and ongoing power outages have caused formal businesses to either close or reduce their operations. The informal sector's dominance has also had a negative impact on customs revenues, import and export taxes, and excise duties. Bypassing standard import procedures, informal cross-border traders frequently deny the government customs duties.

The finance minister has threatened to crack down on this practice, but these threats are meaningless because the state cannot enforce such measures. A larger economic collapse, where even the most basic controls over trade and commerce are ineffectual, is reflected in Zimbabwe's failure to regulate its informal sector. An equally bleak picture is presented by the dividend issue from state-owned businesses.

Formerly thriving businesses such as Zimbabwe Iron and Steel Company (ZiscoSteel), Zimbabwe United Passenger Company (ZUPCO), Zimbabwe Electricity Supply Authority (ZESA), and National Railways of Zimbabwe (NRZ) have

Economy

Source: Statista

been severely damaged by decades of corruption, poor management, and illegal financial activity.

These SOEs are ongoing liabilities to the state, despite the fact that they ought to be generating substantial revenues. Their collapse, which left the government with few dependable revenue sources, serves as a stark reminder of Zimbabwe's systemic problems with leadership and governance.

As per the social justice advocate and writer Tendai Ruben Mbofana, “The natural resource sector in Zimbabwe has also not made a significant contribution to the state coffers, despite its enormous potential. Gold, diamonds, lithium, and platinum are among the most sought after minerals in the world that can be found in the nation.”

“Corruption and smuggling, however, have seriously damaged this industry. The "Gold Mafia" documentary on Al Jazeera revealed senior officials and their associates engaged in money laundering and gold smuggling,” he added.

The severity of the issue was recently highlighted by the arrest of Wicknell Chivayo's brother, a controversial businessman and convicted criminal, in South Africa for smuggling R15 million worth of gold.

Tax terror

According to reports, mineral smuggling costs Zimbabwe more than $2 billion a year, with many of the smugglers being connected to the wealthy and influential. Because of this, royalties from these resources— which ought to be a substantial source of income—rarely reach the

state's coffers.

In light of this, the extent of the economic collapse is demonstrated by the government's reliance on taxing regular people, such as by imposing duties on fast food and raising tolls and taxes on necessities.

“The desperation of a regime unable to produce revenue through conventional, sustainable means is reflected in this strategy, which disproportionately targets a population already experiencing poverty and hardship. It is an indictment of poor leadership that puts survival ahead of the welfare of its people,” Mbofana mentions.

Zimbabwe's economic problems have been made worse by erratic policies, high inflation, and an unstable currency. These elements foster an atmosphere that is unfriendly to official business operations, deterring investment and impeding economic expansion. The situation is further worsening due to ongoing power outages, which make it practically impossible for businesses to operate effectively.

“The Zimbabwe Chamber of Mines estimates that ongoing power outages will cost the mining industry $500 million this year alone. The economy has been severely damaged by this, and the government is now frantically looking for new sources of income, no matter how extortionate or unrealistic,” Mbofana noted.

The traditional foundations of eco nomic stability—regulated trade, strong stateowned enterprises (SOEs), formal employment, and efficient resource management— have all but collapsed due to corruption, poor management, and failed policies.

Therefore, regardless of the social or economic repercussions, the government has started taxing everything. Fast food taxes on items like pizza, burgers, French fries, and doughnuts are a sign of a more serious problem.

It shows a government that has lost its

Analysis \ Pizza Budget

way and is fighting a long-term structural collapse with short-term, unsustainable solutions. In addition to failing to address the underlying causes of the economic crisis, this strategy runs the risk of making Zimbabweans' suffering worse every day.

Deep economic woes

To sum up, Zimbabwe's "pizza budget" serves as a sobering reminder of the country's economic woes. The government's incapacity to generate income from conventional sources is indicative of a more general breakdown in governance and leadership.

The Mnangagwa administration has decided to tax the most vulnerable people into even greater poverty rather than tackling the structural problems that caused this collapse.

The regime is desperate to survive in an economy it has systematically destroyed, and this is not a sustainable solution.

Zimbabweans deserve better—an administration that puts the welfare of its people, transparent governance, and sustainable economic growth ahead of exploitation-focused, short-sighted policies.

Meanwhile, with the highest interest rate in Africa, Zimbabwe is expected to close out the year.

After the monetary policy committee decided to maintain the same borrowing rates at its last meeting of the year, the interest rate in the Southern African nation is currently at 35%. Bloomberg claimed that this would make it the highest interest rate in Africa.

“To ensure that inflation expectations remain well anchored, the MPC resolved to maintain the current tight monetary policy stance,” John Mushayavanhu, the governor of the country’s central bank said.

According to a Bloomberg report, the hardline stance taken by the Reserve Bank of Zimbabwe has helped the nation's bullion-backed currency gain strength and regain some of its value in relation to the US dollar.

In April 2024, Zimbabwe became the first country in the world to use ZiG, or "Zimbabwe Gold," a new currency backed by gold.

To sum up, Zimbabwe's "pizza budget" serves as a sobering reminder of the country's economic woes. The government's incapacity to generate income from conventional sources is indicative of a more general breakdown in governance and leadership

Vietnam

Vietnam's leaders successfully modernised and liberated their economic policies with the Doi Moi policy

Vietnam: Asia's new economic powerhouse

GBO correspondent

Vietnam, frequently referred to as one of the "Asian Tigers," has seen tremendous economic growth over the last forty years. Numerous conflicts, including the Sino-Vietnamese conflict and the CambodianVietnamese War, made the Southeast Asian nation seem hopeless in the 1980s.

The government's primary focus following the war was economic recovery, which resulted in revolutionary policies, the integration of international trade, and strategic placement in global supply chains.

Vietnam’s economy after the war

The government experienced a period of economic stagnation following the 1955–1975 Vietnam War. The years of centralised economic planning under communist rule were largely to blame for the economy's underdevelopment, poverty, and reliance on agriculture. In addition to being cut off from other nations, Vietnam had little access to international markets.

Moi

Vietnam's GDP in current prices from 2015 to 2024

Source: Statista

Widespread poverty and underdevelopment were indicated by the low GDP of the nation. Due to the lack of foreign investment, the economy was largely reliant on subsistence farming, particularly rice farming. Vietnam's centrally planned economy and post-war isolation also contributed to its lack of international trade and investment ties.

Considering that Vietnam was adopting the same development model as the Soviet Union and the Eastern European bloc, the country was on the verge of economic collapse by the early 1980s. The leaders' adoption of new political and economic laws fuelled economic expansion.

Several factors, including Vietnam's remarkable economic reforms and thriving tourism industry, have contributed to its economic growth.

Doi Moi reforms

Vietnam's leaders successfully modernised and liberated their economic policies with the Doi Moi policy. It was difficult to build relationships with other nations in Vietnam prior to 1986 because it was an impoverished nation and the United States had placed severe sanctions on it.

In order to address this issue, the government put the new Doi Moi reform policies into effect, which included a shift from a centralised, state-run economy to one that is focused on the market. In order to attract foreign direct investment and stimulate economic activity in the private sector, the nation also eliminated all of its trade restrictions and adopted an export-oriented strategy.

Vietnam's underdeveloped state was transformed into a more industrialised nation with many small businesses, foreign investment enterprises, skilled labour, and high exports by the ruling party's implementation of economic

reform over the next three decades. Individual investments and trades have increased as a result, since many Vietnamese people use Singaporean forex broker platforms and trading opportunities to grow their wealth.

The substantial amount of foreign direct investment is another factor contributing to Vietnam's rapid economic growth. The US, Japan, and the European Union are among the countries that invest in Vietnam, particularly as Western investors look for alternatives to China. Vietnam gained appeal for several reasons after it opened its doors to other nations. Due to its advantageous East Asian location near international supply chains and its stable sociopolitical climate, there is a greater chance of attracting foreign interest.

Also, Vietnam is a party to a number of free trade agreements, including the Association of Southeast Asian Nations treaty framework and the EU-VN free trade agreement. The nation has put a lot of effort into building its infrastructure, particularly in the areas of digital and transportation infrastructure, which draws in investments from international businesses.

Key driving factors

Vietnam's manufacturing and export industry has thrived since the Doi Moi policy due to favourable foreign interest, particularly in production industries like electronics, seafood, and textiles. Vietnam has positioned itself as a regional manufacturing hub by utilising its skilled labour and free-trade agreements.

Additionally, the county prioritises exportoriented manufacturing, such as clothing, electronics, and raw textiles. Due to rising labour costs in China, Vietnam has established itself as a substitute manufacturing location for businesses in need of dependable production bases. Vietnam's export capabilities have been improved by investments in infrastructure, such as ports and transportation systems.

Vietnam has expanded its tourism industry in recent years and is now a popular destination for travellers from all over the world. With its cultural heritage, low prices, and strong social media influence, Vietnam has become a popular travel destination.

In the first quarter of 2024 alone, the Southeast Asian country welcomed over 40.6

million foreign visitors, a 72% increase from the year before. Additionally, Vietnam witnessed a quadrupling of domestic traveller trips over the last ten years. Nearly six million jobs are supported by this industry, which now makes up 7% of the national economy.

Vietnam now boasts a diversified economy, including a thriving export and manufacturing sector and a developing digital economy. It is now the second-largest coffee exporter in the world and a major manufacturer of textiles, footwear, and smartphones.

According to experts, the country's GDP will grow at a rate of 6.1%, from the 5.8% growth predicted in April 2024, to approximately $468.5 billion by the end of 2024. The expansion of Vietnam's middle class is stimulating the country's retail, real estate, and services industries as well as domestic consumption.

A significant shift towards greener industries has also occurred, particularly with its renewable energy initiatives, which are a component of its long-term growth plan.

The bold transformation

Vietnam has become one of Southeast Asia's most dynamic economies in a few decades, having gone from being an impoverished, invaded, and war-torn nation. The country has accelerated its growth thanks to its audacious economic reforms, FDI attraction, global trade integration, and a highly qualified labour force. Vietnam also prioritises high-value manufacturing, digital transformation, and sustainable development for its ongoing economic growth.

Meanwhile, the Macroeconomic Research Office stated that the country’s economy is projected to grow by 6.6% in 2025.

In just a few decades, Vietnam has transformed from an impoverished, invaded, and war-torn nation into one of Southeast Asia's most dynamic economies, driven by bold economic reforms, foreign direct investment, global trade integration, and a highly qualified labour force

"However, the uneven economic recovery calls for a recalibration of macroeconomic policy mix to promote a more broad-based recovery, while safeguarding financial stability."

In the short term, Vietnam's prospects are improving because of the strong demand for export orders, even though Typhoon Yagi temporarily disrupted the economy.

The appreciation of the Vietnamese dong, tightening liquidity conditions, the recent drop in global oil prices, and weak domestic demand all contribute to the containment of inflationary pressure.

The central bank's target ceiling of 4.5% is still below headline inflation, which is expected to increase from 3.3% in 2023 to 4.1% in 2024.

The rebound in exports contributed to the current account surplus, while resilient FDI inflows continued to bolster the financial account.

AMRO lead economist Sumio Ishikawa said,

Feature \ Doi Mo

According to a survey, stable services activity in January and a slowdown in the manufacturing sector helped the euro zone’s economy begin 2025 with a slight rebound in growth.

S&P Global's HCOB preliminary composite eurozone purchasing managers' index increased

Japan

Euro zone businesses to see modest growth

slightly below the 51.5 forecast in the Reuters poll.

Demand growth remained modest, suggesting there won't be a significant recovery anytime soon. The new business index rose from 50.2 to 50.7.

from 49.6 in December to 50.2 in January, just surpassing the 50-point threshold that separates expansion from contraction.

According to a Reuters poll, this figure would slightly change to 49.7. An index of the bloc's leading services sector fell from 51.6 to 51.4, but it remained above the breakeven level and was only

Japan cautious as Trump 2.0 begins

Japan's government remained cautious about the country's economy, partly due to concerns over US President Donald Trump's policies and their potential impact on global growth.

The government maintained its assessment that the economy had recovered moderately in January, supported by consistent wage gains and a strong corporate sector. It also highlighted financial market

The manufacturing sector’s decline, which began in mid-2022, showed signs of easing, with its headline PMI increasing from 45 points in December to 46 points.

An output-measuring index, which contributes to the composite PMI, stayed below 50 but rose to 46 points from 44 points, marking the highest level in eight months. Manufacturers kept their prices steady despite the rising cost of raw materials.

fluctuations as another factor to monitor.

"Executive orders on various policies, such as immigration and energy policies, which could impact the economies both within and outside the US, are being implemented," said an official at the Cabinet Office.

Trump's threats of tariffs against key trading partners have unsettled investors and policymakers, shaking international markets.

A survey revealed that the majority of Japanese companies doing business in the US are preparing for the consequences of Trump's policies. Japan has been the top investor in the world’s largest economy for five consecutive years since 2019, according to a Cabinet Office report. By dominating the manufacturing sector, Japanese businesses are also helping to create jobs in the US.

Trump's threats of tariffs against key trading partners have unsettled investors and policymakers

Global FDI hits $1.4T in 2024, says UNCTAD

The UN Conference on Trade and Development (UNCTAD) has released its latest Global Investment Trends Monitor, indicating that foreign direct investment (FDI) is at a turning point.

When flows through European conduit economies—often acting as transfer points for investments before they reach their final destination—are excluded, global FDI drops by 8% in 2024, despite an 11% increase to an estimated $1.04 trillion.

The UNCTAD report predicts that FDI will grow moderately in 2025 due to better financing conditions and an increase in mergers and acquisitions (M&A), though investor uncertainty and risks remain high.

Multinational transactions in conduit economies drove a 43% increase in developed economies, while flows decreased by 15% without them.

Global investments in Sustainable Development Goals (SDG)-related sectors fell by 11% in 2024, with fewer projects in infrastructure, water and sanitation, and agrifood systems compared to 2015, the year the goals were adopted.

The number and value of greenfield projects decreased by 8% and 7%, respectively, although investments in AI and semiconductors helped keep values near the record set in 2023.

Goldman see Fed rates at 3.75% or higher

According to a recent survey, the majority of investors anticipate that the United States Federal Reserve will lower interest rates by about 50 basis points (bps) in 2025.

More than half of the nearly 680 investors surveyed by Goldman Sachs in early January stated that they expect the Fed funds rate to be 3.75% or higher by the end of this year, which would suggest reductions of roughly 50 basis points in 2025.

While 29% are betting on a target range of 3.5% to 3.75%, over a third (35%) expect rates to fall between 3.75% and 4% by the end of 2025.

The key interest rate was lowered by a quarter percentage point last month by the Federal Open Market Committee (FOMC), to a range of 4.25% to 4.5%. Goldman Sachs Research anticipates two more cuts this year.

According to the Goldman Sachs survey, investors are less optimistic this year due to growing inflationary concerns.

"This could be partly attributed to the change in tone at the December FOMC meeting, with less easing expected and more caution around inflation," said Oscar Ostlund, global head of content strategy, market analytics, and data science at Goldman Sachs.

Technology

Salt Typhoon

Analysis

Salt Typhoon: Cyberattacks rock United States

GBO Correspondent

Salt Typhoon exploited technological weaknesses in firewalls and other cybersecurity devices which protect large businesses

Cyberattacks linked to the Chinese government are alarming the US government, affecting significant parts of the American telecommunications network.

Senator Mark Warner, the chair of the Senate Intelligence Committee, has referred to the cyberattack as the "worst telecom hack in our nation's history," stating that it outperformed earlier hacks by Russian agents.

The intricate cyberattack started as early as 2022 and was executed by a group of Chinese hackers known as Salt Typhoon. According to US officials, its goal was to compromise routers and switches operated by AT&T, Verizon, Lumen, and other firms to provide Chinese agents with continuous access to telecommunications networks throughout the United States.

Following rumours that the FBI and Cybersecurity and Infrastructure Security Agency were helping phone companies combat past network intrusions linked to China, this attack was launched. The earlier hack was a component of a larger effort that targeted Washington-area individuals in political or governmental positions, including presidential hopefuls in 2024.

However, Americans are not the only victims of “Salt Typhoons.” According to research from security vendor Trend Micro, Salt Typhoon assaults have recently jeopardised other vital facilities globally. US officials have also confirmed these discoveries, indicating a significant concern. Chinese authorities, on the other hand, have denied responsibility for this operation, as they have for previous intrusions.

In the opinion of noted cybersecurity expert Richard Forno, the magnitude and scope of this attack are just astounding.

“However, the occurrence of such an incident is not surprising. Numerous businesses of all sizes continue to operate

IT infrastructures that are too complicated to efficiently monitor, manage, and secure, lack adequate resources, or disregard sound cybersecurity practices,” he stated.

How awful is it?

Salt Typhoon, believed to be a threat actor connected to China and has been in operation since 2019, has its primary targets within the United States, Southeast Asia and various African countries, while executing goals like information theft and espionage.

Also known as FamousSparrow, GhostEmperor, Earth Estries and UNC2286, the group was first observed in 2024 and was believed to be responsible for infiltrating Internet Service Providers (ISPs) in the United States to obtain data related to law enforcement activities.

Salt Typhoon exploited technological weaknesses in firewalls and other cybersecurity devices which protect large businesses. The attackers employed more traditional

Salt Typhoon, believed to be a threat actor connected to China and has been in operation since 2019, has its primary targets within the United States, Southeast Asia and various African countries, while executing goals like information theft and espionage

methods and expertise after they were inside the network to broaden their scope, collect data, remain undetected, and install malware for later use.

The FBI reports that the Salt Typhoon operation granted Chinese officials access to a substantial number of documents detailing the timing, locations, and individuals involved in specific communications. In some cases, Salt Typhoon also allowed access to the contents of text messages and phone calls.

Technology Salt Typhoon

Chinese hackers have also targeted other top figures in Donald Trump’s orbit, including Trump himself and the vice president-elect, Senator JD Vance. Other targets included Trump’s son-in-law Jared Kushner and son Eric Trump, members of the Harris-Walz campaign and members of the Biden administration

As per the White House, the backdoors, or private portals, that phone companies give law enforcement to request courtordered phone number monitoring in response to investigations were also hacked by Salt Typhoon. Additionally, the American intelligence apparatus uses this same site to monitor foreign targets within the country.

Therefore, it's possible that the attackers of the Salt Typhoon were able to identify the Chinese spies and informants

under surveillance by counterintelligence organisations. This information could have aided those targets in their attempts to evade surveillance.

Together with its counterparts in Australia, New Zealand, and Canada, the FBI, National Security Agency, and Cybersecurity and Infrastructure Security Agency issued public guidelines on December 3 on how to respond to the Salt Typhoon attack. In their Enhanced Visibility and Hardening Guidance for Communications Infrastructure guide, they go over again the best cybersecurity practices for businesses that could help lessen the effects of Salt Typhoon or possible copycat attacks.

Nonetheless, it offers suggestions for safeguarding particular telecom devices for a few of the Cisco products that were the focus of this attack.

Even though the attack has been going on for months, US officials and the impacted organisations have not yet been able to completely determine the attack's breadth, depth, and severity or expel the attackers from compromised networks.

In November 2024, CNN reported about the FBI informing one of President-elect Donald Trump’s lead attorneys about his cellphone being tapped by Chinese hackers, as part of a wide-ranging months-long operation targeting top Republicans and Democrats.

The FBI informed the attorney, Todd Blanche, that the hackers obtained some voice recordings and text messages from his phone, but that none of the information was related to Donald Trump. The FBI provided Blanche, who has had to start using a different number after the breach, what the hackers obtained, including communications with family.

Blanche was the second of two Trump attorneys believed to be targeted by foreign hackers. In August 2024, attorney Lindsey Halligan was allegedly targeted as part of a separate Iranian hacking effort.

Chinese hackers have also targeted other top figures in Donald Trump’s orbit, including Trump himself and the vice president-elect, Senator JD Vance. Other targets included Trump’s son-in-law Jared Kushner and son Eric Trump, members of the Harris-Walz campaign and members of the Biden administration.

Washington launched a probe against the hacking campaign, which came via intrusions at US telecom firms AT&T, Lumen and Verizon, and considers it to be among the most concerning national security-related hacks in recent memory.

The Chinese spies have forced US government employees to take unusual security precautions. The Consumer Financial Protection Bureau, for example, has directed its employees to only use Microsoft Teams and Cisco WebEx to conduct work-related business involving non-public information.

What are the options?

According to American officials, the infrastructure's pre-existing flaws were a major factor in Salt Typhoon's ability to reach its targets. The failure to follow simple cybersecurity best practices can lead to crippling incidents for enterprises of all sizes. Maintaining cybersecurity measures that make it harder for assaults to succeed is more crucial than ever given how reliant on networked information systems the globe is, particularly for vital infrastructure like the phone network.

The Cybersecurity and Infrastructure Security Agency released its best practices guidelines earlier this week, and organisations should remain vigilant and follow them. To stay updated on the tactics and strategies employed by attackers and learn how to counter them, organisations should monitor not only the news but also various free, proprietary, or private threat intelligence feeds and unofficial professional networks.

To meet their needs and guarantee the

implementation of best practices, businesses and governments need to ensure that their cybersecurity programmes and IT departments have enough personnel and funding. Companies that don't strengthen their defences against Chinese hacking risk fines from the Federal Communications Commission.

Salt Typhoon is probably not a major problem for the average American, yet illegal surveillance is worrisome. The Chinese government probably doesn't care about your family calls or text messages to friends. However, end-to-end encrypted chat services like Signal, FaceTime, or Messages are a viable option if one wants to slightly improve security and privacy.

Additionally, check that the passwords on your devices—including your home router—are not default or simple to figure out. Additionally, to further fortify the security of any important internet accounts, think about implementing two-factor authentication.

Bad dudes and backdoors

It's important to acknowledge that Salt Typhoon has confirmed the long-standing warnings from the internet security community. Efforts to impose secret or proprietary access to technology are likely to be unsuccessful, and no such access will go unnoticed or be used solely by "the good guys."

The government has spent decades trying to weaken encryption capabilities so that only "the good guys" can use them, so it's a little ironic that one of the countermeasures it recommends to prevent Salt Typhoon spying is to use highly encrypted services for text messages and phone calls.

While the US and China may appear locked in a military drone arms race, the latter currently possess a significant advantage

Project Hellscape: US' trump card against China

GBO Correspondent

Amid the ongoing Russia-Ukraine war and the armed conflict in the Middle East (involving Israel), there is another dark cloud looming over the South China Sea region. China will launch a full-scale invasion against its island neighbour, a piece of land which Beijing claims as its own.

Chinese military incursions into Taiwan's Air Defence Identification Zone (ADIZ) have become a new normal, and so have the island nation's live missile fire drills. An independent Taiwan is crucial for the stability of the existing global order (more importantly for American interests). The First Island Chain, running from Japan through Taiwan, the Philippines and as far as Indonesia forms an important part of the American foreign doctrine.

Beijing will want to annex Taiwan without a shot being fired, given the island nation's economic and technological importance (especially the semiconductor ecosystem that powers the West's growth engine). If China completes the annexation, it also gives the Xi Jinping administration an open pass to the Western Pacific, the US backyard, thereby potentially paving the way for a direct (and a massive) confrontation between the world's first and second biggest economies.

So, the stakes are very high for Washington here and defending Taiwan won't be an easy task against an enemy which has almost matched the US in the last few years, in terms of military preparedness. And the job is likely to get more difficult, as a report from the US-based think tank RAND Corp suggests that Several of America's biggest allies are unlikely to commit troops to save Taiwan, either because they lack the military capability or don't want to risk all-out war with an increasingly formidable China.

Technology China

Approved mainland China investments in Taiwan in 2023, by province or city of origin (In Million US Dollars)

Jiangsu 1250.13 Shanghai 570.21

Guangdong 323.37

Zhejiang

309.20

Fujian 217.02 Beijing 41.26

Tianjin 1.01

Source: Statista

US' hellscape theory

China currently possesses every 21st century military marvel like fifthgeneration fighter jets, hypersonic missiles, sophisticated drones and most importantly, an expanding aircraft carrier fleet. Also, Beijing is steadily making giant strides in the domain of cyber and space warfare as well.

Speaking to The Washington Post on the sidelines of the International Institute for Strategic Studies’ annual Shangri-La Dialogue in June 2024, US Indo-Pacific Command chief Navy Admiral Samuel Paparo described the Pentagon’s contingency plan for Taiwan: Flooding the narrow Strait with swarms of thousands of drones, by land, sea, and air, to delay a Chinese attack enough for the US and its allies to muster additional military assets in the region. Cheap, easily weaponizable drones have transformed battlefields from Ukraine to the Middle East since 2022, and the US military is rapidly adapting to this new uncrewed future. While both Washington and Beijing have a growing arsenal of sophisticated MALE (MediumAltitude Long Endurance) and HALE (High-Altitude Long Endurance) drones, in contested airspace, these assets become vulnerable to strikedowns by surface-toair missiles. AI-powered drone swarms, on the other hand, function like normal drones during recce mode but transform into a cruise missiles and launch suicide attacks when they receive the order. They can be launched from trucks or helicopters, after which they carry out coordinated reconnaissance, distributed surveillance and saturated strikes over ground targets.

Great wall of drones

According to a June 2024 analysis from the Centre for Strategic & International Studies, the People’s Liberation Army Navy (PLAN) now boasts the largest maritime force on the planet, with 234 warships to the US Navy’s fleet of 219. The PLA Air Force (PLAAF) also now allegedly has the largest

number of warplanes among all the global powers.

China has been the leading exporter of armed combat drones around the world over the past decade (along with Turkey), according to data from the Stockholm International Peace Research Institute (SIPRI). And when it comes to the consumer drones that are converted into weapons of war by soldiers on the front lines, Chinese drone giant Da-Jiang Innovations controls three-quarters of that market, according to the Wall Street Journal. While the US and China may appear locked in a military drone arms race, the latter currently possess a significant advantage.

“China has essentially copied all of the large and medium high-altitude drones the US has and produced what amount to cheaper versions of the MQ-9 Reaper or the [RQ-4] Global Hawk,” Stacie Pettyjohn, senior fellow and director of defence programmes at the Centre for a New American Security, told the WIRED.

“Potentially more concerning is the smaller drones that don’t have to fly as far and can be launched from mainland China, of which the Chinese military has many,” she stated further.

"Simply put, China has a lot of drones and can make a lot more drones quickly, creating a likely advantage during a protracted conflict. This stands in contrast to American and Taiwanese forces, who do not have large inventories of drones or the right mix of drones to successfully defeat a Chinese invasion,” Pettyjohn and her coauthors wrote in the CNAS report.

Apart from beefing up Taiwan’s counter-drone defences, the Pentagon’s “hellscape” plan proposes that Uncle Sam's military makes up for this growing gap by producing and deploying what amounts to a massive screen of autonomous drone swarms designed to confound enemy aircraft, provide guidance and targeting to allied missiles, knock out surface warships and landing craft, and generally create enough chaos to blunt a Chinese push

across the Taiwan Strait.

Networked drones will not just strike adversaries but also provide critical intelligence, surveillance, and reconnaissance functions to fill the gaps between satellite imaging and crewed overflights, ostensibly allowing the United States and its allies to develop a more complete picture of the battlefield as it evolves.

The concept of Taiwan using densely layered defences to inflict incredibly high losses on an invading Chinese force isn’t a new one, with past visions of a “porcupine strategy” built on missiles and mines as deterrents to an outright invasion. However, the incorporation of massive drone fleets adds a new layer to the fight. And the scenario has been validated through the war games conducted by the US Air Force and defence think tanks like Rand over the past several years.

The CNAS report has also taken note of the developments happening in Ukraine, where the latter's military has successfully deployed drones against the superiorly

numbered and equipped Russian force to disrupt enemy formations, destroy armoured vehicles, and even neutralise surface combatants.

In the Black Sea, Ukrainian forces have managed to destroy 26 Russian vessels and forced Moscow’s decorated Black Sea Fleet to a safe harbour hundreds of miles away using missiles, kamikaze UAVs, and explosive-laden drone boats.

The CNAS report recommends the Pentagon to build a “diverse” fleet of UAVs encompassing “a mix of higher-end and cheaper systems” (the large and expensive Reaper versus low-cost single-use kamikaze drones), along with options like investing in the development of autonomous drone boats for attacking larger surface warships, and pre-positioning short- and mediumrange drones on Taiwan for a rapid, immediate response to a Chinese invasion.

Assessing Pentagon's response

In August 2023, United States Deputy Secretary of Defence Kathleen Hicks announced the department’s new

According to a June 2024 analysis from the Centre for Strategic & International Studies, the People’s Liberation Army Navy (PLAN) now boasts the largest maritime force on the planet, with 234 warships to the US Navy’s fleet of 219

"Replicator Initiative," designed to build and field “attritable autonomous systems” (disposable AI-enabled drones) “at scale of multiple thousands, in multiple domains” within the next 18 to 24 months.

As of March 2024, the Pentagon had earmarked $1 billion across its current fiscal year and 2025 budgets for the first round of Replicator systems. It also recently announced its first tranche of fresh capabilities, which includes the accelerated fielding of more than 1,000 of defence contractor AeroVironment’s Switchblade-600 loitering munitions, along with the procurement of uncrewed “interceptor” surface vessels under the department’s new Production-Ready, Inexpensive, Maritime Expeditionary (Prime) effort.

The Prime drone boats will purportedly be capable of “autonomously transiting hundreds of miles through contested waterspace, loitering in an assigned operating area while monitoring for maritime surface threats, and then sprinting to interdict a non-cooperative, manoeuvring vessel.”

The first Replicator systems were already deployed to the Indo-Pacific, according to Hicks, with some military units training with cheap drones produced under the initiative as of August 2024.

The US Army, on its part, has asked for a $120.6 million budget request for Low

Altitude Stalking and Strike Ordnance (Lasso) semiautonomous loitering munitions to outfit infantry brigade combat teams with the capability. As of April 2024, the Marine Corps has selected three defence contractors to compete for a potential $249 million contract to furnish Marines with so-called Organic Precision Fires-Light kamikaze drone swarms.

US Special Operations Command, an early adopter of loitering munitions, now seeking to outfit its fleet of aircraft with air-launched systems. The Marine Corps, on the other hand, has been experimenting with uncrewed surface vessels bristling with Uvision Hero-120 kamikaze drone launchers, while the Navy has been eyeing missile-hauling drone boats as potential escorts for transport ships.

The US is also working to bolster Taiwan’s own drone capabilities. In June 2024, a $360 million weapons sale to Taipei was approved that included 291 ALTIUS 600M-V kamikaze drones produced by Anduril and 720 Switchblade-300 loitering munitions.

The Taiwanese government plans to procure nearly 1,000 additional AIenabled attack drones in 2025, according to the Taipei Times, with long-standing plans to expand indigenous production of homegrown capabilities to prevent backlogs in weapons transfers from the United States, and, more importantly, ease reliance on Chinese-made commercial offthe-shelf parts.

The challenge called massproducing

An April 2023 assessment from the Rand Corporation indicated that rising demand for weaponized drones would likely “strain” the capacity of the existing US defence industrial base.

Another CNAS report from June 2023 argued that the Ukraine war (and the US government’s role as a major provider of security assistance to Kyiv) has “shed light on serious deficiencies” in the Pentagon’s ability to rapidly scale production of “key

weapons” like precision-guided munitions compared to Russia, a problem echoed in the most recent CNAS report’s assessment of the Pentagon’s approach to Taiwan’s defence.

“Ukraine consistently has pioneered new approaches to drone warfare, but Russia has rapidly adapted and scaled drone production in a way that Ukraine cannot match. Technological and tactical innovations are necessary but not sufficient. Mass production of an affordable mix of drones is also needed to support a large and likely protracted conflict,” the June 2024 CNAS report stated.

China too has enabled the country’s defence industrial base to rapidly accelerate weapons R&D and production, so far that Beijing is “heavily investing in munitions and acquiring high-end weapons systems and equipment five to six times faster than the United States,” as a March 2024 comparison from CSIS put it. By contrast, the US defence industrial ecosystem has over the past several decades consolidated into a handful of "large" contractors like Lockheed Martin and Raytheon, a development that threatens to not only stifle innovation but hamstring the production of critical systems needed for the next big war.

The latest CNAS report also recommends that the Pentagon and US Congress work to foster both the commercial and military drone industrial base “to scale production and create surge capacity” to quickly replace drones lost in a future conflict. While the Pentagon has, with regards to Ukraine, relied on multi-year and large-lot procurement programmes to source munitions from large “primes," apart from providing the industry with the stability it needs to expand production capacity, as mentioned in the 2023 CNAS report, the Replicator initiative is explicitly designed to not only further provide that stability to drone makers but also to pull in “non-traditional” defence industry players, start-ups like Anduril or drone boat maker Saronic, the latter of which recently received $175

million in Series B funding to scale up its manufacturing capacity.

“It comes down to contracts. Where Replicator is potentially most impactful is where the Pentagon buys something they keep for a few years before they get something new for a different mission set so the DOD isn’t keeping a system in their inventory for decades. Establishing those practices, getting those contracts out there, and getting enough money into it so there’s competition and resiliency within the industry is really needed to fuel innovation and provide the capabilities that are needed,” Pettyjohn concluded.

The plans of the Pentagon and its Taiwanese partners to welcome the invading Chinese task force with lethal drone swarms look pretty impressive on paper. However, given the nature of Chinese military build-ups (both resource and troop-wise), Washington and Taipei need to ensure they have an ultra-massive stockpile of loitering munitions and most importantly, a steady production line, which can quickly produce this hardware during wartime.

Can the United States and Taiwan live up to the above challenge? One will have to wait and see what transcends in the next few years.

China too has enabled the country’s defence industrial base to rapidly accelerate weapons R&D and production, so far that Beijing is heavily investing in munitions and acquiring high-end weapons systems and equipment five to six times faster than the United States

Analysis

Is Bluesky becoming the new Twitter?

GBO Correspondent

Bluesky's decentralised approach attracts users who desire a digital environment governed by community-driven values rather than corporate interests

Today's world is dominated by centralised social media platforms that frequently shape public opinion in all domains. Bluesky, a decentralised social media project founded by Jack Dorsey, a co-founder of Twitter, has started to carve out a niche for itself in this crowded world of absurdly lengthy threads and discussions that eventually turn into trolling contests.

Bluesky, founded as an antidote for the problems ailing sites such as X (formerly Twitter), is based on a framework that prioritises user control, openness, and compatibility. In reality, though, what does this mean, and will Bluesky be able to maintain its rising profile in the face of mounting criticism?

Bluesky has AT protocol at the core Bluesky is based on the Authenticated Transfer (AT) Protocol, a new open-source standard that aims to decentralise social media. AT Protocol allows users to transfer their accounts, posts, and follower lists across various apps, eliminating the need to start anew. In contrast, traditional platforms confine data and accounts within a single ecosystem.

The three main pillars upon which the protocol is based support its objective.

The first is account portability, which guarantees users complete control over their online personas. This feature increases user control and flexibility by enabling people to switch platforms without losing their content or personal information.

Algorithmic Choice, the second pillar, allows users to choose or even create the algorithms that decide what content

Analysis \ Decentralisation

shows in their feeds. This overcomes the constraints of one-size-fits-all algorithms and gives people greater control over the information they interact with and the ability to customise their online experience.

Finally, the Composable Moderation decentralises content moderation. Instead, this one gives users, communities, or third-party services the authority to establish content moderation guidelines. Because of this flexibility, various groups can customise their online experience to fit their values and preferences without having to follow rules set by a single authority.

This modular strategy serves as a counterpoint to centralised platforms such as X, where top-down moderation and algorithm decisions have frequently come under fire for amplifying harmful content and creating echo chambers.

Rapid growth driven by dissatisfaction with X

The recent explosive growth of Bluesky isn't happening

alone. The recently concluded US Presidential Elections served as a focal point for divisive content and false information, forcing several disenchanted X users to look for other options. The platform announced that over a million new users had signed up in a single day on November 8, driven by worries about Elon Musk's increasingly disorganised X policies.

Many defectors have criticised Elon Musk's tolerance for misinformation and inflammatory content, citing the platform's apparent monetisation of divisive trends. In contrast, Bluesky's decentralised approach attracts users who desire a digital environment governed by communitydriven values rather than corporate interests. Bluesky's user base surpassed 15 million as of November 2024, which is impressive considering that new registrations are invite-only. The exclusivity might have generated a buzz of desirability similar to Clubhouse's early days, even though it limited initial adoption.

Bluesky may inadvertently recreate the echo chambers and divisive areas it seeks to eradicate in the absence of a common baseline. This fragmentation may endanger the platform's efforts to promote more diverse and inclusive discourse

The user interface of Bluesky is reminiscent of Twitter's early days, providing a reassuringly familiar experience. The main timeline displays follower counts, likes, reposts, and replies, embodying the essence of microblogging. This familiarity especially aids users transitioning from X, making it easier for them to adapt. However, Bluesky operates quite differently under the surface. Its decentralised moderation system is a key differentiator, allowing users to curate their digital spaces with customisable filters.

A user who is annoyed by excessively sensational content, for instance, can easily change algorithms or block entire domains, customising their experience in ways that are not possible with centralised platforms.

This user-first approach also applies to algorithmic transparency, which stands in sharp contrast to X's opaque, engagementbased business model. Users have unheardof control over how they engage with the content on Bluesky, where the algorithm is just one of many options.

Challenges in scaling decentralisation

Despite its lofty goals, Bluesky is experiencing several growing pains, many of which are related to the difficulties that come with decentralisation.

The possibility of fragmentation is a major obstacle. Decentralisation risks establishing isolated communities with disparate norms for appropriate behaviour, even though it encourages a variety of content moderation techniques.

Bluesky may inadvertently recreate the echo chambers and divisive areas it seeks to eradicate in the absence of a common baseline. This fragmentation may endanger the platform's efforts to promote more diverse and inclusive discourse.

Technical restrictions are another obstacle. It is a challenging task to create and grow a decentralised network that is stable and safe. Even though Bluesky's architecture is well-designed, it will be under a lot of stress as the platform expands, especially during viral moments or

extremely divisive international events. The platform's ability to manage increased user activity and interactions while maintaining performance and dependability may be put to the ultimate test.

Moreover, Bluesky's business model is unclear. Bluesky's long-term revenuegenerating plan is still unknown, compared to the conventional social media platforms that rely on ad revenue. While strategic alliances or premium services may help defray operating expenses, depending too much on them may turn off users drawn to Bluesky's user-focused, non-commercial philosophy. A viable and easy-to-use business plan will be essential to the platform's long-term success.

The platform's perceived gatekeeping is the last issue. The invite-only strategy has come under fire for encouraging elitism, although it at first created excitement and exclusivity. Eventually, Bluesky will have to increase access if it hopes to democratise social media.

Nevertheless, there is a chance that this will weaken the carefully chosen community it has already established. As the platform develops, striking a balance between exclusivity and inclusivity will be essential.

A philosophical divide

Bluesky's decentralised philosophy aims to empower users, in contrast to X's centralised control over algorithms and policies under Elon Musk. This difference is not just technical; it represents essentially divergent viewpoints on the proper role of social media in society.

X prioritises mass adoption and profitability, frequently stoking controversy to remain relevant, whereas Bluesky takes a slower, community-first approach that puts long-term trust ahead of immediate gains.

Bluesky, a young platform, hasn't yet demonstrated whether this model can work on a large scale, though. Its dedication to user autonomy fits in with more general debates about data ownership and digital

sovereignty, making it a compelling case study for social media's future. Its success, though, depends on finding a careful balance. Perhaps most importantly, can Bluesky create a sustainable model that avoids the drawbacks of traditional platforms?

Users find Bluesky's modularity and transparency refreshing. Will it be able to accommodate a rapidly expanding community while maintaining its user-centric ethos? Will it address the fragmentation risks inherent to decentralisation? Being able to control one's digital experience is empowering, particularly at a time when platforms frequently control interactions and what users see. However, the platform's unclear business plan and unproven scalability raise significant questions.

What’s the future of Bluesky?

Bluesky represents both the potential and the drawbacks of decentralised social networking, placing it at a crossroads. For disillusioned X users and proponents of digital change, it presents an engaging picture of what social media might become. But whether Bluesky is a longterm substitute or a fad will mostly rely on its capacity to grow sensibly, support its community, and innovate without sacrificing its values.

Bluesky's success will depend on its ability to navigate the evolving digital landscape and manage the challenges that come with decentralisation. The platform's future hinges on striking a careful balance between fostering a diverse, user-driven experience and scaling to accommodate a growing user base.

Additionally, Bluesky must remain adaptable in response to shifting social norms regarding platform accountability, privacy, and trust.

If Bluesky can uphold its core values while evolving to meet user demands, it has the potential to significantly influence the future of social media.

Generative AI promises realtime, customised adaptation to individual demands

Generative AI: Empowering human-centric education

GBO Correspondent

The widening disconnect between technological breakthroughs and a humanistic approach to education is a significant concern in the era of generative AI. This gap jeopardises our ability to anticipate the societal impact of AI capabilities and to utilise them responsibly. Generative AI significantly impacts our daily educational experiences in classrooms and decision-making institutions. It is changing the way we learn and create at an incredibly rapid pace.

Regardless of history, aptitude, or temperament, most students in traditional education followed a standard curriculum created for the group rather than the individual. The shortcomings of this strategy are evident in a time when individualism and personalisation have emerged as key components of modernity.

However, many people involved in education—students, educators, and legislators—find it difficult to understand how generative AI may improve individual learning while tackling moral and societal issues. The smooth incorporation of generative AI in education is hampered by this misunderstanding, which causes conflicts.

Although AI is excellent at providing tailored feedback and encouraging participation through datadriven insights, it lacks the sophisticated contextual knowledge and flexibility human teachers bring to the classroom

Individualised education

It's not that personalised learning is a novel idea. In his 1762 treatise Emile, or On Education, Jean-Jacques Rousseau advocated for individualised education that caters to each student's needs and interests.

More recently, educator Célestin Freinet advocated for a method that honoured the rhythm and curiosity of every child. Due to the requirements of mass education, these approaches have stayed on the periphery of the French educational system.

The goal of the Guizot Law of 1833, which required basic education, and the Haby reform of 1975, which created a single high school system, was to advance equality through standardisation.

Although these innovations made education more accessible, they have frequently come under fire for failing to recognise the variety of students' skills and abilities. Generative AI now offers a chance to tackle the individualised learning problems that conventional education finds difficult to solve.

Generative AI promises real-time, customised adaptation to individual demands without putting an undue strain on educators thanks to its data analytic skills. It can analyse student performance, learning preferences, and learning styles using complex algorithms. This allows it to create personalised learning routes that change the exercises and degree of difficulty as students advance.

The capacity of generative AI to personalise instruction is demonstrated by Harvard's customised generative AI instructor. Offering personalised feedback and real-time help, dramatically increased student engagement when incorporated into a physics course.

However, by highlighting the unique yet complementary qualities, Harvard professors showed that generative AI should supplement human education rather than replace it.

Although AI is excellent at providing tailored feedback and encouraging participation through data-driven insights, it lacks the sophisticated contextual knowledge and flexibility human teachers bring to the classroom, particularly when promoting ethical reasoning and critical thinking. Indeed, an over-reliance on AI may compromise the teacher's role as a mentor for more in-depth intellectual enquiry.

To guarantee that AI is used to support, not undermine, the humanistic goal of education, the professors argued for extensive teacher training programmes that incorporate ethical and pedagogical frameworks.

The impact of generative AI on creativity is another matter of concern. Are students still allowed to experiment, make errors, and follow unorthodox paths—frequently the most intellectually stimulating—if an algorithm controls every element of their education?

According to research from the University of South Carolina, ChatGPT and similar programmes facilitate efficient brainstorming, but also cause students to

become too dependent on generative AI, which lowers their self-confidence in their creative talents. Many pupils claimed that the concepts of generative AI limited their ability to think independently.

Training of teachers

Students who are digital natives utilise these devices instinctively, but they frequently don't grasp the philosophical and ethical ramifications. Teachers now must choose between a lack of adequate training and the need to innovate. A thorough rethinking of education is required to close these inequalities.

To assist instructors in comprehending how generative AI systems learn, process, and produce knowledge, generative AI theory must be incorporated into teacher training.

For instance, the AI4T (Artificial Intelligence for and by Teachers) project in France provides teachers with resources like open textbooks and massively open online courses (MOOCs) to help them incorporate AI into the classroom.

The project promotes awareness of AI's potential while highlighting ethical issues like equity and transparency. AI4T assists educators in overcoming the difficulties of individualised, inclusive learning environments by offering them both practical and epistemological training.

Similarly, the National Science Foundation's EducateAI programme in the US offers tools to educators at all educational levels to guarantee inclusive and accessible AI instruction.

Additionally, the AI for Education organisation provides "Train-the-Trainer" programmes that allow school personnel to become proficient in generative AI and offer their institutions top-notch professional development.

about the applications of generative AI and make these complicated technologies more approachable for pupils.

To democratise knowledge of generative AI and promote an informed discussion about its application in education, this enlarged role for educators is essential.

The integration of generative AI should not impede the growth of ethical reasoning, creativity, empathy, or critical thinking; rather, it should strengthen these qualities. These ideas are essential to a humanistic view of education, and guarantee that education stays centred on people's overall development rather than just technological effectiveness.

All parties involved in education should work together to determine the objectives and ideals that guide the use of generative artificial intelligence in the classroom. It is crucial to stop these technologies from developing on their own without consideration for the actual needs of educators and students. Only by doing this can we realise a vision of technology that supports emancipatory education and creates a future in which generative AI enriches our humanity.

While generative AI offers remarkable potential for personalising education, its integration into classrooms must be approached thoughtfully. The risk of overshadowing humanistic qualities like ethical reasoning, creativity, and critical thinking cannot be overlooked.

To harness artificial intelligence's full benefits, educators must receive comprehensive training that includes technical and philosophical insights, ensuring they remain central to the learning process. AI should complement, not replace, human educators, facilitating a balanced approach that supports individual learning needs while promoting holistic development.

Teachers should get an understanding of the ethical, social, and philosophical facets of generative AI through this training, but it shouldn't make them engineers. Teachers with this experience would be able to encourage critical thinking Generative AI market forecast from 2025 to 2030 (In Billion US Dollars) 2025 62.72

By carefully guiding the application of generative AI in education, we can create an inclusive, thoughtful, and humancentred future that enhances, rather than diminishes, the essence of education.

Source: Statista

Oman launches programme to boost ‘Deep Tech’

The "Deep Technologies" programme was introduced by the Ministry of Transport, Communications, and Information Technology (MTCIT) with the aim of supporting innovators and start-ups in the Sultanate's technology sector.

The two-and-a-half-year programme aims to assist in turning cutting-edge technological advancements into solutions that are ready for the market.

According to Khulood bint Ali al Muhaidhri, Senior Technology Projects Specialist at MTCIT, the programme was developed following indepth discussions with academic institutions, industry experts, and innovation specialists.

Expert guidance will be provided to participants in the Deep Technologies programme, including the development of

targeted marketing plans, financial support, and mentoring from industry leaders.

Additionally, the programme will offer participants direct access to potential investors interested in the cutting-edge technology sector. The programme focuses on deep technologies—innovations rooted in engineering and scientific breakthroughs. These include biotechnology for agriculture and healthcare, robotics, artificial intelligence, and sustainable energy solutions.

The goal of the programme is to help transform cutting-edge technological advancements into market-ready solutions

Qatar digital transformation market to reach $9.19B

Mordor Intelligence projects that the size of the digital transformation market in Qatar will reach $9.19 billion (QR33.55 billion) by 2025.

Additionally, the report notes that the market's revenue is expected to reach $19.65 billion (QR71.75 billion) by 2030, with a compound

annual growth rate (CAGR) of 16.43% by the end of the decade.

Due to the country's growing urban population and the increasing use of mobile phones supporting 3G, 4G, and 5G services, researchers observe that Qatar is currently undergoing rapid

digital transformation.

Qatar's smart city projects are also positively impacting the market by accelerating this transformation.

Previously, officials stated that Qatar is embracing cutting-edge technologies and competing with other nations to become a smart nation.

The strategy Qatar is adopting to capitalise on the global smart city market—which is expected to reach nearly $7 trillion (QR25.56 trillion) by 2030—is also outlined.

The country's national strategic vision goals and a number of government initiatives have made it possible to extend financial services, attract international investments, and enhance Qatar's digital transformation with innovative technologies.

iGenius,

Nvidia data centre to arrive in 2025

The CEO of the Italian AI startup iGenius announced that the company plans to use Nvidia technology to complete a large data centre project in the south of the country this summer. The project will cost $1 billion over five years.

Uljan Sharka, the CEO of the startup, told Reuters that the project's cost led the company to extend its funding round beyond the original goal of 650 million euros.

The new supercomputer for the project will be capable of performing around "115 billion of billions" of calculations per second.

Sharka claimed that, until 2024, the top European supercomputers were able to process around "0.5 billion of billions" of calculations per second.

"We have ambitions to go beyond that, thanks to the latest generation of chips," Sharka said, adding that Nvidia's "Blackwell" chips used in the project have 35 times more computing power than their predecessors, while consuming 25 times less energy.

The data centre will contain roughly 80 of Nvidia's most powerful servers, known as GB200 NVL72 machines, which are equipped with 72 of the company's Blackwell chips.

"At the current pace, we aim to complete the project this summer," Sharka said, adding that iGenius had chosen southern Italy as the location.

Sigma Capital launches $100M Web3 fundt Cloud

Sigma Capital, a prominent Web3 early-stage venture asset manager, introduced the $100 million Sigma Capital Fund I to drive the next wave of Web3 innovation in the Middle East and globally.

The launch aligns with the UAE's pivotal role as a global hub for the Web3 and blockchain industry. With a focus on early-stage venture investments, Sigma Capital Fund I will target game and metaverse development, blockchain infrastructure, DeFi, and real-world asset tokenization.

Additionally, Sigma Capital will manage a liquid token portfolio to generate steady returns. To enhance the performance of the fund’s portfolio, the firm will also leverage high-yield DeFi strategies.

Vineet Budki, CEO and Managing Partner at Sigma Capital, said, "The UAE’s dynamic economy and forward-thinking regulatory environment provide the perfect backdrop for Web3’s next wave of innovation."

Over the next three years, Sigma Capital plans to allocate the fund's investments across ten fund-of-funds, 25 liquid tokens, and 100 early-stage projects.

Sigma Capital has launched a $100 million fund to boost Web3 innovation, targeting DeFi, and blockchain aligning with UAE's strategic vision

EU reconsiders probes into tech giants

According to reports, the European Commission is reassessing its investigations into tech giants like Apple, Meta, and Alphabet's Google.

The tech giants have urged President Trump, the incoming United States president, to challenge the European Union's regulatory scrutiny of them.

Reports indicate that the review was influenced by Trump’s presidency, though it was not directly triggered by his victory.

The review will encompass all cases launched since March 2024 under the European Union’s historic Digital Markets Act (DMA), and it could lead to Brussels reducing or altering the scope of the investigations, the report said, citing sources.

Targeting the market dominance of tech giants, the DMA is one of the strictest regulations. It sets rules for what the biggest

tech platforms in the world can and cannot do and has the authority to fine companies up to 10% of their annual revenue.

While technical work on the cases will continue, the newspaper reported that all decisions and potential fines will be put on hold until the review is complete.

In the cases of Google, Apple, and Meta, regulators are currently awaiting political guidance before making final decisions.

Nokia, STC set 1Tbps Mideast record

Nokia and STC Group have successfully completed the first 1Tbps (terabit-per-second) long-haul field trial in the Middle East and Africa (MEA) region.

“This innovative trial demonstrates the unique potential of Nokia's sixth generation of super-coherent Photonic

Service Engine (PSE-6s) technology in providing high-capacity, efficient, and scalable connectivity for data centres by utilising STC Group's live Dense Wavelength Division Multiplexing (DWDM) terrestrial network,” the statement said.

With this cutting-edge optical

In the cases of Google, Apple, and Meta, regulators are currently awaiting political guidance before making final decisions

infrastructure, STC Group is wellpositioned to meet future market demands and continue providing reliable, fast connectivity while supporting the objectives of Saudi Vision 2030’s digital transformation.

The field trial showcased the reliable operation and seamless integration of Nokia’s Data Centre Interconnect (DCI) DWDM solution into STC Group’s data centre environments. It successfully transported six 100GE and one 400GE high-speed services over 850 km on a single wavelength of 1Tbps.

The solution will enhance network performance and efficiency for customers throughout the Kingdom, while also meeting the evolving demands of AI and cloud services transport, ensuring smooth and scalable connectivity solutions.