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Zawya
an hour ago
- Zawya
LSEG Global Cloud Survey: Financial services firms embrace cloud to drive competitiveness
82% use hybrid/multi-cloud 91% are advancing AI via cloud Financial services firms around the world are accelerating their adoption of cloud technologies to enhance agility, resilience, and innovation, not merely to reduce costs, according to new research conducted by LSEG (London Stock Exchange Group). The global survey of 453 financial services executives reveals that 87% of firms have increased their investment in cloud over the past two years, with a growing emphasis on strategic outcomes such as scalability, revenue growth, and AI enablement. The research shows that 82% of firms now operate with either a multi-cloud or hybrid-cloud strategy, reflecting a shift toward flexibility and risk diversification. However, this evolution is not without its challenges. 84% of respondents have had to adjust their cloud strategies in response to regulatory frameworks such as the EU's Digital Operational Resilience Act (DORA) and General Data Protection Regulation (GDPR). Stuart Brown, Group Head of Data & Feeds, LSEG: 'The results of our survey show that adopting cloud is no longer a technology or engineering led decision; it is a key business imperative. Companies are increasingly driving meaningful value from cloud, improving operational resilience, and preparing for the next wave of innovation. Over the next three years, that innovation will be driven by AI and machine learning, with financial institutions increasingly using cloud to power fraud detection, risk management, data analytics and generative AI.' Security remains a top concern. Nearly half of respondents (47%) cite the sophistication of cyberattacks as their primary worry, followed closely by concerns around data privacy and breaches. Despite this, 92% say operational resilience is a critical or very important factor when selecting a cloud provider underscoring the importance of trust and reliability in cloud partnerships. Firms are seeing tangible benefits from cloud adoption. 54% of respondents report that they have migrated and are already seeing value, particularly in areas like risk management, customer engagement, and enterprise data access. For instance, 83% of firms using cloud for risk management have already completed migration, the highest among all use cases. Interestingly, ROI is increasingly measured by strategic outcomes: 51% assess cloud success by scalability, 47% by revenue growth, and 47% by improved security and resilience. Only 34% prioritize immediate cost savings signaling a shift in how cloud value is perceived. That said, 61% of firms still report reduced IT infrastructure costs, especially in regions like EMEA and APAC, where multi-cloud strategies are more prevalent due to regulatory complexity. The survey found that 91% of firms are either already using or planning to use cloud services for AI initiatives within the next 12 months. Generative AI (60%), fraud detection (50%), and risk management (50%) are the top use cases. Moreover, 84% of respondents say their organizations are somewhat or very advanced in AI adoption, with investment firms leading the way. As firms look to the future, many are also reconsidering their cloud service models. While SaaS remains dominant today (43%), there is growing interest in Platform as a Service (PaaS) and Infrastructure as a Service (IaaS), a sign that firms may be preparing to build more bespoke applications in-house. Click (here) to view the full report. About LSEG LSEG is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world's financial system. With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes. LSEG is headquartered in the United Kingdom, with significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific. We employ over 26,000 people globally, more than half located in Asia Pacific. LSEG's ticker symbol is LSEG. Contact Tarek Fleihan Global Communications, LSEG newsroom@
Gulf Business
an hour ago
- Gulf Business
Cloud, data and AI: How to harness the new engines of progress
Image: Supplied When it comes to investments in artificial intelligence (AI), the numbers are staggering. Saudi Arabia and the UAE just announced plans to buy hundreds of thousands of advanced AI chips. And at France's 'AI Action Summit' earlier this year, public and private actors pledged investments surpassing EUR 300bn to advance AI in Europe. It is very clear that expectations about the economic benefits of this technology are sky high. Yet, a recent McKinsey survey found that more than 80 per cent of organisations worldwide are not yet seeing any tangible impact on their The key to the answer is that AI is not a stand-alone technology. For its benefits to materialize, AI has to be deeply embedded in business processes. And for that, companies have to put three pillars in place: modern cloud software, modern data management, and a consistent stack of AI technologies linking with them. It starts with software All successful companies use software to organise and optimise their business operations – from order intake and procurement to production, delivery and customer service. Yet, many enterprises still rely on legacy on-premise software – that is, a wide range of programs installed on the company's local IT servers. This 'software landscape' often consists of disparate applications plugged together – heavily modified over the years and frequently not up to date with the latest innovations. These complex systems are costly to maintain, and they make it difficult for companies and their leaders to respond to challenges and opportunities with agility and speed. AI applications, too, face major obstacles in legacy systems: They have a hard time grasping the company's inner workings, making sense of fragmented and widely distributed datasets, and may not be able to find certain key information. The first step towards powerful business AI, therefore, is the move from legacy on-premise software to modern cloud software – that is applications that are centrally managed and maintained in professional data centers, constantly updated with new innovations, and tightly linked so information can flow freely between the different parts of the company. For companies today, this so-called cloud migration is faster, smoother and more transparent than ever before – thanks to the proven methods and advanced digital tools now available. And the prize is larger than ever before, too: integrated cloud applications work together out of the box and cover the company's software needs end-to-end across departments. This integration allows a car maker, for example, to reduce time and cost – say, from receiving an order through the vehicle's production to its final delivery. Similar benefits extend to all other industries and workflows. A cloud migration, consequently, is more than an IT project: it is the digital foundation for a thorough modernisation of the entire enterprise, for moving from 'good' to 'great'. Once in the cloud, companies can add advanced data management solutions with little effort. Think of advanced data management as a magic filing cabinet: it automatically stores and organises all documents, all information, all data automatically in the right place and in perfect order – always up to date, perfectly searchable, without duplicates and errors, smartly annotated, and everything in the right context. Cloud and data In their combination, integrated At the same time, they enable AI technologies to access, understand, and facilitate transactions across the company – assisting human users with repetitive tasks as well as with deep analyses and insights. And the next evolution is already at hand: Based on integrated cloud applications and data management, digital coworkers – also known as 'AI agents' – are now able to carry out complex work assignments. For example: find overdue invoices, identify what went wrong, resolve the issue, and make sure payment targets are met. Realising the tremendous benefits of AI is thus about going on a journey: from on-premise software to cloud applications, then onwards to modern data management and the use of AI agents throughout the enterprise. It is this journey that unlocks the tremendous potential so many see in AI – and enables us to completely reimagine how our businesses and economies are run. The writer is the CEO of SAP SE.
Gulf Business
an hour ago
- Gulf Business
Sukna Capital's Fares Bardeesi on launching Saudi's first open-ended direct lending fund for SMEs, startups
Image: Supplied Targetting sectors such as fintech, sustainability and AI, the fund addresses a critical gap in the region's capital stack by providing structured credit solutions based on commercial traction rather than collateral alone. The fund is being led by a seasoned team, including Fares Bardeesi, a former senior banker, and Waleed Alballaa, ex-STV founding partner and co-founder of Riyadh Angel Investors. In this interview, the firm's CEO Fares Bardeesi outlines their investment strategy, timing, and how this fund aligns with Saudi Arabia's Vision 2030 ambitions. Congratulations on securing regulatory approval. Can you walk us through the vision behind launching the region's first open-ended direct lending fund, and why now is the right time for such a product in Saudi Arabia? The CMA's regulatory approval represents a pivotal moment, not just for our fund, but for the entire regional financing landscape. We're honoured by their confidence and leadership in enabling this innovation. Our vision is to create a new institutional pathway for yield and growth capital that reflects the realities of today's economy: digital, fast-moving, and underserved by traditional financing models. The timing is critical. While the tech and startup ecosystem has matured significantly, financing structures have not kept pace — particularly when it comes to flexible, non-dilutive credit. Alternative credit is necessary to support the scaling of innovative businesses, bridge liquidity gaps for VC funds, and reinforce long-term ecosystem sustainability. How will this fund fill the existing funding gap for startups and SMEs in Saudi and the wider Middle East, particularly when it comes to non-dilutive financing options? The regional capital stack has long been polarised — companies either dilute equity or take on rigid, collateral-heavy bank loans. Our fund introduces a third path: structured, non-dilutive capital aligned with commercial momentum, not just balance sheet size. We underwrite based on receivables, recurring revenue, scalability potential, and real operating data — unlocking access to credit for high-growth businesses that traditional lenders often overlook or pledge against misaligned collateral. Whether it's a SaaS business bridging working capital or a VC fund managing capital call timing, we structure debt around business models — not bureaucracy. Fintech, AI, and sustainability are mentioned as focus areas — how did you prioritise these sectors, and what criteria will guide your investment decisions within them? They are not the only focus — we target all high-growth SMEs led by dynamic, innovative founders. Our underwriting is based on verifiable traction: recurring revenue, contract visibility, customer retention, or transaction volume. We structure every facility around growth, governance, and repayment discipline. For example, fintech is enabling financial inclusion, AI is transforming productivity, and sustainability is becoming a strategic imperative. But these sectors are often misunderstood or incompatible with legacy credit models. Our prioritisation reflects both institutional responsibility and market momentum. These sectors are not just innovation-driven — they are redefining the region's economic infrastructure. With your team's collective experience, spanning $6.5bn in transactions and early-stage VC leadership, how will this background shape the fund's approach to risk, deal structuring, and startup engagement? Our experience gives us a dual lens that few lenders possess: credit discipline and tech fluency coupled with deep founder empathy. We know how to structure facilities that balance investor protection with commercial flexibility, from performance-based triggers to collateralised repayment waterfalls. Just as importantly, we know how to engage early, even when companies don't yet meet traditional credit thresholds. This allows us to design solutions across stages — whether for a venture-backed startup scaling to growth or a cash-flowing SME. Ultimately, we bring institutional standards to market segments that need both capital and partnership. Given the open-ended structure of the fund, how do you plan to balance flexibility for borrowers with long-term returns for investors? The open-ended structure is one of the fund's greatest strengths — and also one of its core responsibilities. It enables continuous capital raising and deployment, while offering periodic liquidity to investors. We manage this through matched-duration lending, strong credit governance, and real-time portfolio monitoring. Each facility is structured with clear triggers, backed by assets or contractual flows, and aligned with actual business cycles. For borrowers, this means responsive access to credit tailored to operational needs. For investors, it means exposure to income-generating, collateral-backed assets — delivered with institutional-grade oversight. It's a rare balance of flexibility and discipline, and one the market is ready for. In what ways do you see Sukna Capital and this fund contributing to Saudi Arabia's broader goals under Vision 2030—particularly in diversifying the economy and empowering entrepreneurship? Vision 2030 is about building an ecosystem where innovation, private capital, and entrepreneurship intersect — and that's exactly where Sukna Capital is focused. As of Q3 2024, SME lending in Saudi Arabia stood at SAR 329.23bn — just 9.1 per cent of total bank credit — well below the Vision 2030 target of 15–20 per cent. Our fund is designed to help close that gap by introducing structured, non-dilutive financing aligned with regulatory frameworks and commercial realities. This fund enables startups and SMEs to scale without premature equity dilution or inflexible debt. It also provides institutional investors with access to a new, income-generating asset class — deepening local markets and reducing dependency on imported capital. The fund is more than a financing solution. It's a strategic tool for economic diversification, entrepreneurship, and long-term resilience.
