Autonomous mobility led the new transport hype in the last decade, but it appears to have suffered from both internal limitations and external issues in recent years. The lasting global semiconductor chip shortage and greater supply crisis have also shifted automaker attention towards the installation of more critical functions in their vehicles. While the technology exists and has proven to be functional both in testing grounds and in real life conditions, the lack of suitable infrastructure and unoptimized cost structures, seem to have deterred innovation-driven use cases. Arthur D. Little (ADL), the leading management consultancy firm with the longest-standing presence in the Middle East region, elaborates on this and many other findings in their new Autonomous Mobility Journal, the series’ fourth edition. The journal comprises exclusive coverage of the latest autonomous mobility developments in the world, including KSA, shedding light on industry dynamics, prominent use cases, and the importance for smart mobility solution providers and governments to meet sustainability goals by 2030.“Following a lot of anticipation over the potential of autonomous vehicles over the last decade, promising silver linings are starting to appear. While autonomous mobility is still not accessible or even available to most users on the roads globally, companies operating in this space have continued their work in the background to advance the technology. Additionally, the growth of other mobility-related technologies and use cases are expected to pave the way and facilitate the uptake of autonomous mobility,” said Antonio Semeraro, Senior Principal at Arthur D. Little Middle East.According to the International Energy Agency, electric vehicle sales reached two million units in the first quarter of 2022, representing a 75% increase compared to the same period in 2021. Compared to traditional internal combustion engines , electric vehicle hardware and software are significantly more suited to accommodate for autonomous driving features, and autonomous driving technology is more prevalent across electric vehicles than internal combustion vehicles.Developed in line with research conducted regionally and internationally, the publication details the latest innovation-led projects across the urban landscape. Examining the situation from KSA's stance, the Transport General Authority (TGA) plays a leading role in ensuring that KSA's transport sector adheres to stringent safety and quality levels, while also promoting investment and sustainable development through the strategic use of data and technology. By aligning with the Kingdom's Vision 2030 socio-economic goals, TGA is at the core of a modern and efficient transportation ecosystem that is poised for long-term success. The latter was underlined in the ‘Interview of the semester’ segment by Prof. Omaimah Bamasag, Deputy of Transport Enablement at the Transport General Authority of the Kingdom of Saudi Arabia (KSA).Prof. Omaimah Bamasag said: “Over a decade after its inception, the regulatory position of TGA in the Kingdom makes its role essential to the Kingdom’s vision. Saudi Arabia’s goals for autonomous vehicle transport are very ambitious and can be seen from the giant projects based on autonomy, such as NEOM and the Red Sea projects. These smart cities are designed to be sustainable across new transport systems for passengers and goods based entirely on autonomous mobility, such as autonomous aerial vehicles, autonomous pods and robo-taxis.”TGA is working on two tracks. The first entails promoting and adopting new transportation modes through testing and piloting, R&D, and partnering with governmental and private entities, universities, and research bodies to formulate an enabling regulatory framework for these technologies. In the second track, TGA prepares economic, social, and environmental feasibility studies through which it determines the stages of imposing certain regulations on operators and providers of public transport services and goods transport.In a nutshell, while TGA has the ability to swiftly implement regulations, it is crucial to conduct a thorough analysis of any possible effects that may arise from their implementation. This proactive approach ensures that any regulations align with the Kingdom's Vision, and ensures positive outcomes for the transport industry and society as a whole. TGA is also collaborating with the Ministry of Communications and Information Technology and the Saudi Authority for Data and Artificial Intelligence to elevate the underlying communication infrastructure’s readiness, including 5G, data privacy and security. In parallel, TGA’s Investment and Competitiveness unit looks to create investment opportunities for the private sector and to pave the way for new horizons in the local market for autonomous vehicles.Autonomous Mobility Journal details the strategic elements critical to the project, providing recommendations on how transport authorities can streamline their operational launch efforts.

Dubai, UAE: Arthur D. Little (ADL) has published a new Viewpoint, “Pursuing Excellence in Corporate Banking” exploring challenges and opportunities that illustrate the lasting and even increasing importance of the corporate segment for banks in the United Arab Emirates (UAE). The Viewpoint reviews the impacts of recent disruptions and expected, and explores options for banks to strengthen and grow their corporate and investment banking (CIB) business.CIB in the UAE represents close to $635 Bn. assets and $15 Bn. revenue. CIB assets are around 5 times the ones of retail banking. According to the report, regional banks however focus their external communication primarily on the consumer segment, whether it is fintech, strategy, digital transformation, products, or applications. Further, corporate banking is often perceived as a specialist area and, as a result, innovation is frequently thought to be focused in the retail banking sector. The report outlines an increasingly competitive, fast-evolving, and complex environment for CIB businesses, which includes a variety of challenges caused by structural trends, COVID-19, and the war in Ukraine.ADL Viewpoint calls for the primary focus to return to corporate banking for a few important reasons – an inflationary storm is ahead and CIB will be critically exposed to it and CIB is heavily impacted by environmental, social, and governance (ESG) efforts. While the retail segment is more competitive, CIB still benefits from several growth drivers. Clients are facing increasingly complex issues that require new solutions from banks. In addition, the SME segment remains underpenetrated. The potential of digital optimization remains mostly untapped as well, and sizable innovation opportunities exist in the space of blockchain and cryptocurrencies.Philippe DeBacker, Managing Partner and Global Head of Financial Services, Arthur D. Little, said:“The region offers a positive and transformational environment for corporate and investment banking, which accounts for about 70% of assets in the GCC amid high hopes for the economy and enormous private and public sector spending. As highlighted in the Viewpoint, banks should anticipate further sector consolidation due to shrinking margins and high regulatory requirements. To accelerate their journey to becoming banks of the future, banks need to redesign their business models to maximize revenue per customer, protect capital and ensure risk resilience by optimizing the use of financial technology.”Stephane Ulcakar, Associate Director and Head of Corporate and Government Financial Services, Arthur D. Little, said:“ The digital transformation trend has caused widespread disintermediation and the need for scale across industries. As a result, banks must transform in much the same way that car manufacturers — and many other industries — did during the 20th century. This means moving away from an integrated model and outsourcing most value steps except a few strategic ones, such as design, assembly, and control. In response to these disruptive forces, however, banks have an unprecedented chance to broaden their business, reduce costs, and become more reactive. However, as was true with car manufacturing, this can lead to additional challenges.”Developing a Sustainable Business Model According to the report, there are four common imperatives for banks to be aware of:Banks must rebalance their portfolios based on diversification, return, and risk targets, and monitor those at client level. They must also anticipate balance sheet cleanup, impact on tier-one capital, develop treasury and liquidity management capabilitiesBanks must maximize revenue per customer by spotting all opportunities for (re)activation and retention, cross/upselling, and pricing realization. They must also consider variable rates and facility nonusage penalties to reflect the upward rate trends.Banks should engage clients beyond credit, with distressed M&As, debt capital market (DCM), or ESG transformation financing. They must be ready to increase their nonperforming loan and restructuring management. Sectorial specialization will be required to properly assess needs and risk level.Banks should work on simplifying their organizations, their products and the activities they carry out. Reducing their share of fixed costs requires the use of digital tools to optimize, automatize, and/or outsource part of the value chain, either to suppliers or to shared utilities.At the same time, successful CIB strategies must leverage the bank’s core assets and capabilities to create a differentiated and viable positioning.Anticipating a new paradign for CIB in the GCCThe digital transformation trend has caused widespread disintermediation and the need for scale across industries. In response to these disruptive forces, however, banks have an unprecedented chance to broaden their business, reduce costs, and become more reactive.As explored in the Viewpoint, with the strong hindsight of local regulators, the multiplication of banking accelerators for start-ups, and the rapid development of the fintech ecosystem, it is clear that the UAE CIB sector is poised to quickly integrate these new trends and successfully adapt them to the specifics of the local markets.

Arthur D. Little (ADL) today announced that Alexander Buirski has been appointed as a Partner in the company’s Travel & Transportation practice. He has extensive experience in strategy and transformation leadership across a range of industries in MEA, Asia-Pacific, and Europe, with particular expertise in policy and governance, investment and risk management, economic development, and operations excellence. Alexander will be based in the company’s Dubai office.Prior to joining ADL, Alexander was at Kearney where he led sectorial and institutional transformation programs for key government clients, with a focus on Transport & Logistics, Defence & Security, Corporate Social Responsibility, Public Sector Investment, and Economic Development. From 2013 to 2017, he was Director of Strategy Consulting at Monitor Deloitte, and from 2009 to 2013, he was Co-founder and Partner at Soloren Consulting, a boutique agency focused on the public sector. Alexander has also previously held positions at Deloitte and Accenture. Thomas Kuruvilla, Managing Partner, Arthur D. Little Middle East, comments: “Alexander has worked at the highest level in governmental and public sector consulting, leading on major transformational projects encompassing national transport and logistics strategy, defense modernization, and maritime and aviation competitiveness plans. He will be a fantastic asset to the ADL team in MEA as we expand our travel and transportation footprint.”?Alexander Buirski, Partner at ADL, adds: “As governments strive to transform the way their countries run, from modernizing aerospace and defense to managing the electric mobility transition, it’s vital they have access to the best thinking in how to meet these challenges, and can collaborate with experts skilled at turning strategy into reality. I am excited at the prospect of helping ADL’s clients to address these issues by providing that level of expertise.”Alexander has a Master in Applied Finance from the University of Melbourne, Australia, a BSc. (Honors) in Business Administration from the University of Bath, UK, and a BA. in Psychology (Social & Clinical) from Deakin University, Australia.