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85% of Companies in the GCC Rank Innovation as a Top Priority, Yet Face Significant Readiness Challenges

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Companies in the Gulf Cooperation Council (GCC) prioritize innovation more than ever—with 85% of senior executives in the region ranking it among their organizations’ top priorities, slightly above the global average. This strong commitment to innovation reflects the region’s ambition to lead the global knowledge economy. A new report released by Boston Consulting Group (BCG) highlights this positive trend while noting opportunities for GCC firms to enhance their innovation readiness.

For its annual innovation study, Innovation Systems Need a Reboot, BCG assessed companies’ innovation maturity and surveyed senior innovation executives worldwide, including those in the GCC region.

While innovation continues to demonstrate value, the study shows that innovation systems globally need a reboot. Innovation priority remains at an all-time high, with 83% of global companies ranking it as a top-three priority. However, innovation readiness has sharply declined worldwide, from 20% two years ago to 9% last year and just 3% this year globally. This global trend is even more pronounced in the GCC, where firms exhibit even lower innovation readiness than the global average. The study reveals that while GCC organizations prioritize innovation at a higher level than their global counterparts, they face greater challenges in translating that ambition into readiness. This aligns with global patterns where companies across various regions are struggling to match their innovation priorities with practical readiness, though the gap appears more significant in the GCC.

“We are seeing GCC organizations prioritize innovation, with 85% of executives ranking it highly. However, converting this ambition into readiness remains a challenge,” said Faisal Hamady, Managing Director and Partner at BCG. “To close this gap, it is crucial to strengthen the link between innovation and business strategy. Organizations must benchmark processes, align them with strategic goals, and leverage Generative AI while addressing talent constraints and rising capital costs.”

Talent Challenges in a Changing Landscape

When GCC business leaders were asked to rank the challenges facing their innovation teams, talent pool constraints emerged as one of the top concerns, alongside the rising cost of capital.

“The GCC is in flux when it comes to attracting top talent,” noted Thibault Werle Managing Director and Partner at BCG “While Dubai, Abu Dhabi, and Riyadh have all ranked highly as cities of choice for global talent, the region is still in the nascent stages of building its talent pool. However, as we’ve seen with many initiatives in the GCC, if you build it, they will come. The rapid development of innovation ecosystems in these cities will likely accelerate talent attraction in the coming years.”

The study also highlighted the need for a broader ecosystem approach to innovation in the GCC, recognizing the crucial role of public sector leaders and national strategies in driving innovation alongside corporate efforts.

Generative AI Adoption on the Rise

The study found that 84% of GCC firms are starting to use Generative AI (GenAI) to drive innovation, reflecting the region’s embrace of cutting-edge technologies. However, as with global trends, most organizations are still in the early stages of GenAI adoption.

“GenAI presents a significant opportunity for GCC innovators to boost efficiency and bring fresh perspectives to their organizations,” said Managing Director and Partner, Faisal Hamady. “As the region continues to invest in digital transformation and AI capabilities, we expect to see more widespread and sophisticated use of GenAI in innovation processes.”

Six Key Recommendations for Linking Innovation with Business Strategy

Practical foresight in strategy is crucial for GCC companies to succeed. Companies can position themselves at the forefront of their industries by being proactive, anticipating future trends, and aligning innovation efforts with strategic goals. To improve innovation readiness and link innovation with business strategy, BCG recommends focusing on six key elements.:

  • Executive ownership: Ensure innovation is championed by the CEO or other prominent members of the C-suite.
  • Clear sense of purpose: Develop a shared story on the purpose of innovation and how it supports the company’s strategy.
  • Focus on competitive advantage: Explicitly focus on opportunities where the organization has an explicit right to win.
  • Specified domains: Center the innovation portfolio on areas that support the overall strategy.
  • Target portfolio structure: Create a vision for how resources should be deployed across the innovation portfolio.
  • Quantified objectives: Establish a fact-based perspective on how innovation contributes to financial goals.

Looking Ahead

As GCC economies diversify towards knowledge-based sectors, strategic innovation becomes crucial. By addressing current challenges and aligning innovation with business strategy, GCC companies can compete globally and drive regional economic growth. Leveraging emerging technologies like GenAI while maintaining a clear strategic vision will be instrumental. To close the readiness gap, leaders in the GCC need to sharpen the link between innovation and strategy while leveraging AI. Additionally, putting in an outsized effort to address talent constraints and funding challenges, especially in light of rising capital costs, will be critical. This approach will improve innovation readiness, enhance talent attraction, and accelerate technological advancement, positioning the GCC as a global innovation hub.

Reports

GCC Trade Set to Grow 5.5% Annually Through 2033, with Total Trade Volume Reaching 2.3T USD, BCG Report Finds

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BCG

Global trade patterns are transforming significantly as new economic corridors emerge and traditional relationships evolve. According to new research from Boston Consulting Group (BCG), world trade in goods is projected to grow at an average of 2.9% annually through 2033, with the GCC region playing an increasingly pivotal role in connecting major trade routes between East and West.

These insights are among the key findings of BCG’s latest report, “Great Powers, Geopolitics, and the Future of Trade,” which analyzes trade and economic data from more than 150 countries. The report comprehensively analyzes how shifting global trade dynamics will impact regional and international commerce through 2033.

Strong Trade Growth Across Key GCC Corridors

The BCG report reveals a robust outlook for GCC trade, with total trade volume set to reach 2.3T USD by 2033. This growth is supported by significant expansion across multiple trade corridors, with China emerging as the largest growth market at 88B USD (5.7% CAGR), followed by Japan at 46B USD (9.4% CAGR). The analysis shows GCC’s non-hydrocarbon trade will grow by 3.5% annually, highlighting the region’s successful economic diversification efforts.

As global trade patterns shift, the GCC strengthens its position as a critical connector between East and West. This is evidenced by the broader transformation in global trade flows, where China’s trade with the Global South is set to increase by $1.25T and trade between developing nations is projected to grow by $673B through 2033. The GCC’s strategic location and expanding infrastructure position the region to capture value from these evolving trade dynamics.

Rami Rafih, Managing Director and Partner at BCG, said: “The reconfiguration of global trade flows presents a pivotal moment for the GCC. As trade routes transform, the region isn’t just a geographic intermediary but a central orchestrator of new patterns. The GCC’s deliberate investment in capabilities positions it to achieve greater success through developing proactive and risk-based options rather than defaulting to reactionary responses. The key is leveraging this foundation to shape emerging trade corridors, particularly as Global South commerce evolves.”

Global Trade Shifts Create New Opportunities

The report identifies major transformations across key trading regions that will reshape global commerce. While North America solidifies as a resilient trade bloc with US-Mexico trade increasing by $315B by 2033, ASEAN emerges as a significant beneficiary of global shifts with 3.7% annual trade growth. India’s trajectory is particularly notable, with total trade expected to reach $1.8T annually by 2033, driven by its increasing role as a global manufacturing hub.

The growing power of the Global South represents one of the most significant developments in global trade. Representing 18% of global GDP and 62% of the world’s population, these 133 developing nations are set to expand their trade significantly. Annual trade among Global South nations will grow by $673B over the next decade, while trade between the Global South and developed economies is projected to reach $1.67T annually by 2033.

To navigate these shifting trade dynamics and capitalize on emerging opportunities, BCG’s report outlines several key imperatives for business leaders in the region:

Key Recommendations for Business Leaders

  • Develop resilient and transparent supply chains by diversifying sourcing strategies and deepening relationships with key suppliers across emerging trade corridors
  • Build geopolitical capabilities to better anticipate and respond to changing trade dynamics, particularly in rapidly evolving markets across Asia and Africa
  • Expand presence in growth markets, focusing on opportunities in India, China, and other emerging economies where GCC trade is projected to grow significantly
  • Embrace smart nearshoring strategies that leverage the GCC’s strategic position between East and West trade routes
  • Invest in regional differentiation as global trade fragments, adapting operations and technology to serve diverse market requirements

Cristian Rodriguez-Chiffelle, Partner and Director, Trade, Investment & Geopolitics at BCG, said: “For business leaders, navigating today’s complex trade landscape requires more than agile supply chains – it demands an insights-driven approach to geopolitical shifts. Success will come to those who cultivate deep market intelligence, develop robust scenario planning, and build a portfolio of strategic options, thus building a “geopolitical muscle.” While diversification improves resilience, the real opportunity lies in shaping new trading partnerships that bridge geopolitical divides, and extracts not only challenges but also opportunities arising from geopolitical events.”

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Financial

Hackers Stole US$2.2 Billion in Crypto Through 2024, Chainalysis Research

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Crypto

2024 marks the fourth consecutive year in which hackers stole more than US$1Billion worth of crypto assets

In recent weeks, Bitcoin, the world’s most valuable cryptocurrency, has once again been making headlines for the impressive bull run that saw it surpassing US$100,000 for the first time ever. While this milestone is likely to draw further investment into digital assets, new data from Chainalysis suggests investors be conscious of the platforms they utilize, as through 2024, crypto hackers managed to steal US$2.2 billion worth of crypto.

This stolen amount represents a 21% year-on-year increase, and marks a fourth consecutive year in which criminals stole over US$1 billion in crypto. Interestingly, it was just 303 individual hacking incidents that resulted in these losses, highlighting the relatively high concentration of attacks, and the potential for significant losses through even single incidents.

Although DeFi still accounted for the largest share of stolen assets in the first quarter of 2024, centralized services were the most targeted in Q2 and Q3. Some of the most notable centralized service hacks include DMM Bitcoin (May 2024; US$305 million) and WazirX (July 2024; US$234.9 million).

“This shift in focus from DeFi to centralized services highlights the increasing importance of securing mechanisms commonly exploited in hacks, such as private keys,” said Eric Jardine, Cybercrimes Research Lead at Chainalysis. Private key compromises accounted for the largest share of stolen crypto in 2024, at 44%. “For centralized services, ensuring the security of private keys is critical, as they control access to users’ assets. Given that centralized exchanges manage substantial amounts of user funds, the impact of a private key compromise can be devastating.”

In the UAE, both Centralized and Decentralized services are popular, with the former accounting for 47% of the country’s crypto transaction share by volume between July 2023 and June 2024, and the latter accounting for 32% over the same period. “It’s important to recognize that hackers are constantly adapting their techniques, making robust security practices non-negotiable across virtual asset and financial service providers. Security also needs to be seen from the lens of being reactive to proactive, with providers focusing on identifying and addressing threats before they happen. At a very minimum, investors should prioritize using multi-factor authentication (MFA), regularly updating passwords, and storing their private keys securely offline. Additionally, choosing exchanges or platforms with robust security protocols and insurance coverage can provide an extra layer of protection. Fortunately, the UAE’s clear regulatory framework represents a significant step towards creating a more secure crypto ecosystem,” Jardine added.

Describing how a collaborative approach between the public and private sectors is essential to mitigate the growing threat of crypto hacks, Jardine said, “Data-sharing initiatives, advanced tracing tools, and targeted training can empower stakeholders to quickly identify and neutralize malicious actors while building the resilience needed to safeguard crypto assets. By fostering stronger partnerships with law enforcement and equipping teams with the resources and expertise to respond rapidly, the crypto industry can reinforce its defences against theft. Such efforts are not only critical for protecting individual assets, but also for building long-term trust and stability in the digital ecosystem.”

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Hospitality

The Future of Kitchens: Top Trends for an Ultra Kitchen Experience, Courtesy MVP Appliances

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MVP Appliances

The New Year is just around the corner and we can’t get enough of the kitchen trends that we are about to explore — and we’re not just talking about what’s cooking! 2025 is a year all about embracing trends that bring together a lifestyle and how we redefine cooking and enjoy the heart of our home.

MVP Appliances, the largest supplier and sole distributor in the Emirates for high-end brands, including an expert in kitchen and home appliances is focused on the epitome of modern design and technological innovation. A lot of thought is going on behind the scenes to design the next generation of appliances in a way that will benefit both consumers and the environment in 2025.

Let’s dive into some of the key trends to enhance your cooking experience in 2025

  1. Sustainable Practices:

Sustainable trends in kitchen appliances are becoming significantly more focused on sustainability as homeowners seek an eco-friendly lifestyle. By opting for energy-efficient appliances, which include refrigerators, ovens, and dishwashers, plus sustainable materials in the kitchen such as wood and recycled glass, homeowners feel they can contribute to a more sustainable and responsible lifestyle.

Low-impact cooking technologies, such as induction hobs, offer more energy-efficient cooking as these appliances tend to work faster and require less energy than cooking on gas or electric stoves.

Hydro-cleaning appliances are more water-efficient than would be necessary for scrubbing or cleaning them, as only a small amount of water required for the steam cleaning process is comparatively low. Modular kitchen appliances and fixtures that are multi-functional can help reduce the need for excess materials and make kitchen spaces breathable and more efficient.

Overall, recycled kitchen appliances contribute to a circular economy, extending their lifecycle. This approach not only benefits the environment but also drives innovation and creativity from both a brand and a consumer perspective. Furthermore, consumers get to make eco-friendly choices to show their participation in environmental responsibility, while still enjoying modern, well-equipped, and stylish kitchen appliances.

  1. Smarter Technology, Smarter Cooking

Need more oat milk? Your fridge will let you know before you do. Say hello to appliances that are as connected as your smartphone. Some of the top features that contribute towards a smart appliance are health and safety features, which can enhance food safety with built-in thermometers to ensure that the meals are cooked at the right temperature. Smart overheat protection is also a commendable feature that prevents appliances such as microwaves and ovens from overheating by automatically shutting it off when overheating is detected. This energy-efficient appliance not only contributes to safety but also extends the lifespan of the appliances.

Induction cooking technologies are growing in popularity due to their speed, efficiency in energy consumption, and cost savings, helping consumers save on their resources.

High Tech Refrigerators are trending and are smarter than ever not just for the ease of use, but also to enhance a standard of living. Features like, touchscreens, inventory tracking, and BioFresh options help reduce wastage of food, check available items, and enhance convenience.

Wellness-focused appliances, such as Steam ovens, air fryers, Cold-press Juicers, and sous-vide machines which promote healthier cooking are in high demand as they support a balanced diet without having to compromise on the taste.

Together, these health-focused appliances make nutritious cooking accessible and convenient. They reflect a shift toward conscious, balanced eating and wellness-centered living, empowering users to enjoy healthier meals and make positive lifestyle choices right from their kitchen.

  1. Designs and Aesthetics:

Kitchens are bidding farewell to the colourful era and welcoming minimalist, sleek, warm wood tones and warm terracotta hues. Appliances with sustainable materials such as recycled metals or eco-friendly coatings, are trending as consumers are understanding the importance of conscious living. Appliances in matte and pastel colours make a bold statement, allowing homeowners to add warmth into their kitchens. Every household has a willingness to experiment with their kitchen space, making it into a hub for gathering and cooking together and enjoying the whole experience while doing so.

Drawer appliances are gaining popularity due to their focus on space. These appliances are family-friendly as they can be installed at any height suitable for children, encouraging them to prepare their snacks or drinks and promoting self-service among young children. They also contribute to a sleek finish making it very appealing to the space and last but not least, the versatility in using these drawer appliances comes with multi-functionality, allowing a variety of uses in a single appliance and it also saves on the utility bills!

Designers are focusing on shaping the elements of the appliances in a way that is appealing to consumers with less space consumption and ease of use. In brief, design plays a vital role in kitchen appliances by blending technology, functionality, and visuals, making kitchen spaces more enjoyable and resourceful.

  1. Food Processors:

Food processors are multi-functional appliances used for chopping, dicing, grating, etc. which are gaining more consumer attention as they support the preparation of a wide range of dishes from salads and sauces to dough and dips, saving time and money. They are extremely user-friendly with great featured controls and safety mechanisms that make them accessible to cooks and consumers of any skill level. Food processors also encourage healthy eating habits amongst households due to their ease of creating simple dressings, sauces, and healthy salads. They can also be timed and controlled through innovative features and embedded technology which function on pre-programmed settings and touch controls that help manage the whole process of preparing a meal.

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