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Arab News
2 days ago
- Business
- Arab News
How quantum computing and AI can accelerate and improve drug development
RIYADH: Using traditional discovery processes, a staggering 90 percent of drug development trials are unsuccessful. But what if there is a future in which quantum technologies could revolutionize that process to achieve unprecedented efficiency? The race to develop quantum computers has been surging worldwide. In April, IBM announced a $150 billion investment plan to strengthen US technologies and innovation over the next five years, including a push for quantum computer development. Additionally, the UK's National Quantum Technologies Programme has invested more than £1 billion in quantum technology since its establishment in 2014, with facilities such as the National Quantum Computing Centre. PASQAL in France is also a leading company in quantum research. In 2024, Saudi Aramco signed an agreement with PASQAL to deploy the first quantum computer in the Kingdom, scheduled to be up and running by the end of this year. If the promise of quantum computing holds, the pharmaceutical industry could be looking at faster, more accurate, and less costly drug discovery and development. The World Health Organization predicts that antimicrobial resistance to existing drugs will lead to 10 million human deaths by 2050. To stop the timer, the pharmaceutical industry must adopt new and innovative technologies. Artificial intelligence has already had a huge impact on the efficiency and success of clinical trials, generating new materials and computationally predicting their performance rather than relying on scientists' intuition for molecular hypotheses that then must be synthesized and tested repeatedly. Quantum computing, however, has the potential to take it one step further. It uses special units called qubits (quantum bits), which can exist in multiple states at once and can link together in unique ways, to perform computations much more efficiently than classical computers. In layman's terms, quantum computers solve complicated problems quicker while AI simplifies the problem and then solves it. Quantum computers understand the problem. AI does not. A research scientist focusing on computational catalysis with a doctoral degree in chemical engineering spoke to Arab News about the current feasibility of this tool. 'We are talking about mature technology (AI) versus very immature technology (quantum),' he said. According to the World Economic Forum, in synergy, quantum computing and AI can lead to enhanced molecular understanding. Although our expert heeds that 'we are not at the stage where we can actually do that, we can only do it on very specific problems because there are many physical limitations… you need to be able to manipulate atoms in a very precise way that we currently cannot do.' Quantum physics allows scientists to predict the behavior of electrons in molecules, producing detailed three-dimensional structural insight into new drug designs. Rather than adopting traditional laborious methods such as X-ray crystallography, quantum principles and AI provide virtual simulations. AI further accelerates this process by quickly analyzing datasets and clinical outcomes to pin down favorable drug targets and predict a compound's efficacy. A novel tool called quantum machine learning combines AI's power of data analysis and pattern recognition with quantum computing's ability to simulate complex molecular behavior throughout trillions of possibilities. This paves the way to more accurate and faster predictions in drug binding orientation, absorption, and metabolic pathways. QML makes it possible to sift through vast chemical spaces holding trillions of potential drug candidates in weeks or days in contrast to the years that classical computers would need. With the integration of quantum computing and AI, compound screening traditionally executed 'in vitro,' meaning outside of a living organism, can be done 'in silico' instead, meaning carried out in virtual simulations. A new quantum-AI model developed by Qubit Pharmaceuticals with Sorbonne University and announced in May of this year called FeNNix-Bio1, reportedly leverages unprecedented computational power and very accurate molecular databases. Employing the principles of quantum mechanics (such as superposition and entanglement), quantum computers can model molecular and atomic behavior with great accuracy and speed. This is critical to understanding relevant properties such as molecular stability, binding affinity, and how drugs could interact with target proteins in real-world conditions. Structural optimization and docking — determining how a drug candidate fits into a biological target, can be simplified using QML and quantum-powered algorithms. These algorithms rapidly evaluate orientations of molecules against target structures to identify optimal configurations, and which molecules will bind most effectively. This enhances drug absorption and metabolic stability. Quantum computing and AI models are then able to streamline the preclinical phase, delivering only the most promising compounds to laboratory validation, significantly reducing tedious lab work and enabling researchers to conduct faster and cheaper work. And with more accurate early-stage predictions, overall success of clinical trials is boosted, lab to market time is reduced, and the possibility of delivering targeted treatments for unmet patient needs is increased. 'You do patient trials to reduce the risk of anything going wrong with the patient, imagine if you are able to accurately predict how the drug will affect people without doing a trial. This will create a leap in how we produce drugs and how we can commercialize drugs,' our expert said. Meeting specific patient needs based on their biological profiles rather than producing drugs for a wide demographic can drastically change our healthcare systems and how we consume products. Patients will be able to get a drug for diseases such as Alzheimer's, diabetes, cancer, and more without having to wait ten years for a trial to decide their fate. You can also anticipate what conditions or illnesses people are at high risk of developing later in life and treat them early on, such as joint pain and hair loss. It comes down to significant time reduction and improved chances of success. 'A quantum computer can significantly increase my accuracy. My chances of success are very dependent on my prediction of the performance. 'The quantum computer can make more accurate calculations that can make my predictions of the performance much more accurate. By doing that, my chances of success will be higher. 'Another way is that a quantum computer will be much faster in performing tasks, generating structures and predicting their performance than AI, and by that I will reduce my time further.' Although we are still a long way from achieving this, the functionality of quantum computing and AI theorizes that personalized medicine and treatments for patients is possible. 'If (specific patient information) becomes accessible to those companies… then they match that information to their database, hypothetically speaking it is possible.' Although this all sounds like the realms of sci-fi, there have been significant strides in this area of quantum research. Pfizer and its partner XtalPi, a US-China pharmaceutical tech company, reportedly used quantum-inspired algorithms and AI cloud computing to reduce 3D structure prediction time of new molecules from months to days, enabling rapid assessment of candidate molecules and their drug-likeness. Additionally, it is said that Qubit Pharmaceuticals' FeNNix-Bio1 quantum AI model could be used for QML applications such predicting toxicity, side effects, and drug metabolism with greater speed and accuracy. Taking it into perspective, our expert said: 'Three years ago, no one would have thought we would have a large language model that can perform as well as ChatGPT does today, it came out of left field. A breakthrough could happen.' However, WEF warns that before this technology can become the new commercial norm, certain guardrails need to be put in place to ensure the safe, effective, and responsible use of this novel tool. Data integrity and avoiding bias, ethical and regulatory oversight, workforce readiness training, and a shared vision for applying best practices all must be upheld industry wide.
Saudi Gazette
2 days ago
- Politics
- Saudi Gazette
Saudi Arabia condemns Israeli strike on Gaza church
Saudi Gazette report RIYADH — Saudi Arabia on Thursday condemned in the strongest terms the Israeli bombing of the Latin Church in Gaza, denouncing the ongoing Israeli attacks against innocent civilians and places of worship. In a statement, the Saudi Ministry of Foreign Affairs expressed deep concern over the repeated Israeli violations in the region, stressing that the absence of deterrent measures continues to endanger regional peace and stability. The Kingdom renewed its call for the international community—particularly the United Nations Security Council—to take decisive action against Israel's practices and to activate mechanisms for accountability and international justice in response to these grave breaches of international law.
Arab News
2 days ago
- Business
- Arab News
Closing Bell: Saudi bourses end week in red at 11,007
RIYADH: Saudi Arabia's Tadawul All Share Index fell on Thursday, shedding 31.76 points, or 0.29 percent, to close at 11,006.98. The benchmark index recorded a total trading turnover of SR4.19 billion ($1.12 billion), with 125 stocks advancing and 117 declining. The Kingdom's parallel market Nomu also slipped, losing 50.11 points to close at 27,294.97. The MSCI Tadawul Index dropped 0.32 percent to settle at 1,410.87. LIVA Insurance Co. was the best performer on the main market, with its share price surging 9.94 percent to SR13.93. Emaar The Economic City saw its shares rise by 5.15 percent to SR13.69, while Alistithmar AREIC Diversified REIT Fund gained 4.57 percent to reach SR9.15. Tourism Enterprise Co. recorded the steepest decline, falling 6.45 percent to SR0.87. On the announcements front, Lana Medical Co. said it secured multiple contracts worth SR57.1 million from the Ministry of Health. According to a Tadawul statement, the first contract, valued at SR53.5 million, involves the collection and storage of hazardous waste at health centers, hospitals, and specialized facilities in the Al-Jouf region and Al-Qurayyat Governorate. The second contract, worth SR3.6 million, covers the transportation of medical waste to the Riyadh First Health Cluster. The company stated that the impact of these 60-month contracts will be reflected in its financial results starting in the fourth quarter of 2025. In a separate filing, Lana Medical Co. announced a two-year agreement valued at SR10 million with the National Unified Procurement Co. to manage medical waste. Shares of Lana Medical Co., listed on the Nomu parallel market, rose 7.98 percent to close at SR36.
Arab News
2 days ago
- Business
- Arab News
Syria announces sweeping tax reforms to boost transparency, investment
RIYADH: Syria's Finance Ministry has announced a major overhaul of the country's tax system, set to take effect in early 2026, as part of broader efforts to modernize fiscal policy, enhance transparency, and attract investment. According to a statement carried by the state-run SANA news agency, the draft law for the new income tax system is currently open for public consultation until July 30. The reforms are designed to ease the burden on taxpayers, promote fairness, and stimulate economic activity through clearer and more equitable rules. Under the proposed system, individuals earning less than $12,000 annually will be fully exempt from income tax, in a move aimed at supporting low-income earners. Corporate tax rates will be tailored by sector, replacing the current 'flat income committees' with a more transparent and structured mechanism. The reforms will also unify multiple charges into a single tax fee to eliminate double taxation, while offering deductions for taxpayers who make verified social contributions. Enhanced digital systems—including mandatory electronic invoicing and QR code integration—will be introduced to curb tax evasion and strengthen compliance. To improve trust and streamline the resolution of tax disputes, the ministry plans to implement simplified procedures, with complex cases referred to a specialized tax court. Notably, the burden of proving income sources will shift from the taxpayer to the tax authority—a significant change from the existing framework. In addition, incentives will be introduced for timely payment, and a separate initiative will address the settlement of outstanding tax dues to protect public funds without overburdening taxpayers. The Finance Ministry said the changes reflect its commitment to building a fair, flexible, and modern tax environment that can support Syria's broader economic recovery.
Arab News
2 days ago
- Business
- Arab News
Saudi MSME lending surges 31% in Q1 amid digital optimism and financial reform
RIYADH: Saudi Arabia's lending to small, medium, and micro enterprises rose by 31 percent year on year in the first quarter of 2025, according to recent data from the Saudi Central Bank. The total value of facilities reached SR383.2 billion ($102.18 billion), up from SR293.43 billion in the same period last year. Of this, 95.12 percent was disbursed by banks, while the remaining 4.88 percent came from finance companies, highlighting the formal sector's growing involvement in SME credit provision. Medium-sized companies — defined as those with revenues between SR40 million and SR200 million and 50–249 employees — accounted for the largest share of loans, receiving SR190.18 billion. Small enterprises followed with SR139.6 billion, while micro-enterprises received SR53.43 billion. Notably, micro-enterprises saw the fastest growth, with loan volumes surging by 82 percent year on year, compared to 35 percent for small enterprises and 18 percent for medium-sized firms. The lending boom reflects the expanding role of SMEs in Saudi Arabia's economic diversification strategy under Vision 2030. Monsha'at, the General Authority for Small and Medium Enterprises, has played a pivotal role through programs like Kafalah — a loan guarantee initiative designed to de-risk lending to SMEs by assuring a portion of the loan value to participating financial institutions. This has been instrumental in extending access to credit, particularly for micro and first-time borrowers. Despite rising loan volumes, credit access remains a structural challenge. According to the World Bank, SMEs across the Middle East and North Africa region receive only 8 percent of total bank credit, compared to 22 percent in high-income economies. In Saudi Arabia, SMEs accounted for just over 9 percent of total loans in 2024 — far below the Vision 2030 target of 20 percent. New players are helping bridge the gap. Saudi-based fintech platform Erad recently raised $16 million in a pre-Series A funding round to expand its Shariah-compliant, data-driven SME financing offering, according to Wamda in April. The company, which provides funding in as little as 48 hours, says over 60 percent of its clients are first-time credit takers. Since launch, it has processed more than SR100 million in funding and received over SR2 billion in applications, underscoring pent-up demand for fast, flexible finance. Meanwhile, digital optimism among Saudi entrepreneurs is on the rise. According to the 2025 Mastercard SME Confidence Index, 93 percent of surveyed SMEs expressed confidence in the year ahead. The adoption of digital payments has risen sharply, with 99 percent now accepting them, up from 88 percent in 2023. SMEs cited faster access to revenues, enhanced credibility with financial institutions, and more streamlined transactions as key benefits. Data and AI are also seen as enablers of smarter, more inclusive lending. Nearly 97 percent of surveyed SMEs said better data and analytics tools were essential to scaling operations. A growing number are prioritizing AI, automation, and cybersecurity in their growth strategies — trends that align with broader efforts to digitize financial infrastructure. Lending models must evolve alongside SME needs. Traditional bank lending often requires fixed-asset collateral and extensive documentation, limiting access for tech-oriented or service-based SMEs, according to a June article by International Banker. Risk assessment remains based on backward-looking financials, rather than dynamic indicators like sales or payroll data. Fintechs like Erad are disrupting this model by using real-time revenue data to underwrite loans. Globally, the credit gap for SMEs stands at $5.7 trillion, with Gulf Cooperation Council countries accounting for roughly $250 billion of that, according to International Banker. Saudi Arabia's efforts to close this gap are gaining momentum. In addition to loan guarantees and fintech innovations, open banking frameworks, SME-focused digital banks, and embedded finance models are helping to lower access barriers. Vision 2030 sets a clear target: raise SME contribution to GDP from 30 percent to 35 percent. With over 1.8 million SMEs now operating in the Kingdom, financial empowerment of this sector is not just a policy goal — it is a macroeconomic imperative. The path ahead will require deeper ecosystem alignment, tailored credit models, and continued innovation. But the first quarter of 2025 has already signaled a strong start — one that reflects both institutional commitment and entrepreneurial momentum across the Kingdom.
