FRANKFURT: German prosecutors expect the first rulings this year in legal cases resulting from the Volkswagen (VW) emissions scandal, Automobilwoche magazine reported on Saturday.
“We hope to conclude lawsuits ... this year,” Klaus Ziehe, spokesman for the Braunschweig state prosecutors office in Lower Saxony state, where Volkswagen is headquartered, was quoted as saying by the magazine.
Ziehe said there were four lawsuits with 47 persons indicted, although these included double entries.
Only a handful of people had been targeted in the early stages after the diesel emissions test cheating scandal that has undermined the German car industry’s influence.
And clearing up the scandal will drag on beyond this year, said Hans Dieter Poetsch, head of VW’s supervisory board.
“There will not be a real final stroke for some time to come,” he said.
Poetsch also said that VW does not intend to publish a report of its own about the investigations alongside statements made by the US authorities, as it would be “unjustifiably risky to add a report of our own right now.”
Volkswagen would also remain quiet on the internal investigations undertaken by US law firm Jones Day it hired, a summary of whose findings was compiled in the form of a “statement of facts” for the US Department of Justice, as this had been pledged to the US authorities, he said.
Volkswagen filed a legal complaint with a Munich court on Wednesday, seeking to prevent Bavarian state prosecutors from using information seized during searches of Jones Day.
German prosecutors expect rulings in VW scandal this year
German prosecutors expect rulings in VW scandal this year
AI set to double data center electricity demand by 2030: IEA
RIYADH: Electricity consumption by data centers is expected to double by 2030 to reach 945 terawatts per hour, driven by the rapid use of applications powered by artificial intelligence, according to a think tank.
In its latest report, the International Energy Agency said that this rise in electricity demand will create new challenges for energy security and carbon dioxide emission goals.
According to the IEA, electricity consumption by data centers has increased by 12 percent annually since 2019 to reach 1.5 percent of the global amount in 2024.
The agency added that even though AI is driving the use, the technology can also unlock opportunities to produce and consume electricity more efficiently.
“AI is one of the biggest stories in the energy world today — but until now, policymakers and markets lacked the tools to fully understand the wide-ranging impacts. Global electricity demand from data centers is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today,” said Fatih Birol, executive director of the IEA.
He added: “The effects will be particularly strong in some countries. For example, in the US, data centers are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
The IEA further said that generative AI requires colossal computing power to process information accumulated in gigantic databases.
The report added that data centers in the US are set to consume more electricity than the cumulative power used for the production of aluminum, steel, cement, chemicals and all other energy-intensive goods combined by the end of this decade.
In advanced economies more broadly, data centers are projected to drive more than 20 percent of the growth in electricity demand between now and 2030, putting the power sector in those economies back on a growth footing after years of stagnating or declining demand in many of them.
In March, another report by the IEA revealed that energy demand globally rose by 2.2 percent in 2024 compared to 2023, driven by usage of electricity and growth in emerging and developing economies.
In that analysis, the agency revealed that energy demand growth last year was also faster than the average annual increase of 1.3 percent between 2013 and 2023.
Meeting rising demand
According to the IEA, the world should tap a diverse range of energy sources to meet data centers’ rising electricity needs.
Data centers are set to account for around one-tenth of global electricity demand growth to 2030, less than the share from industrial motors, air conditioning in homes and offices, or electric vehicles.
The report projected that renewables and natural gas are set to take the lead in this journey due to their cost-competitiveness and availability in key markets.
“Renewables generation is projected to grow by over 450 TWh to meet data center demand to 2035, building on short lead times, economic competitiveness and the procurement strategies of tech companies,” said the IEA.
It added: “Dispatchable sources, led by natural gas, also have a crucial role to play, with the tech sector helping to bring forward new nuclear and geothermal technologies as well.”
The report further said that natural gas and nuclear power capacity is projected to grow by over 175TWh each by the end of this decade to meet electricity demand in data centers.
Aligning with this trend, in October Google signed a deal with Kairos Power to to use small nuclear reactors to generate the vast amounts of energy needed to power its AI-based data centers.
In the same month, Amazon also signed three agreements with X-Energy to develop nuclear power technology called small modular reactors to power its data centers.
Microsoft is also eyeing to use nuclear energy from new reactors at Three Mile Island, the site of America’s worst nuclear accident.
Earlier this month, in a separate report, the IEA said that the range of new energy technologies under development globally is broader and appears more promising than ever before, catering to the rising demand.
The think tank added that modern energy technology landscape is highly dynamic, with both emerging and established economies contributing to the growth of innovation in the sector.
Unlocking opportunities through AI
According to the IEA, while data centers could negatively impact energy security, wise implementation of AI has the potential to transform the energy sector in the coming decade.
The report said that effective use of the technology could unlock significant opportunities to cut costs, enhance competitiveness, and reduce emissions.
“With the rise of AI, the energy sector is at the forefront of one of the most important technological revolutions of our time,” said Birol.
He added: “AI is a tool, potentially an incredibly powerful one, but it is up to us – our societies, governments and companies – how we use it.”
According to the report, countries that want to benefit from the potential of AI need to quickly accelerate new investments in electricity generation and grids.
The IEA also urged these nations to improve the efficiency and flexibility of data centers, and strengthen the dialogue between policymakers, the tech sector and the energy industry.
The report added that countries should also consider establishing new data centers in areas of high power and grid availability.
The Paris-based agency further said that AI could intensify some energy security strains while helping to address others.
“Cyberattacks on energy utilities have tripled in the past four years and become more sophisticated because of AI. At the same time, AI is becoming a critical tool for energy companies to defend against such attacks,” said the IEA.
The emission factor
The IEA said that the growth of data centers will inevitably increase carbon emissions linked to electricity consumption, from 180 million tons of CO2 today to 300 million tonnes by 2035.
However, these emissions remain a minimal share of the 41.6 billion tonnes of overall global emissions estimated in 2024.
“While the increase in electricity demand for data centers is set to drive up emissions, this increase will be small in the context of the overall energy sector and could potentially be offset by emissions reductions enabled by AI if adoption of the technology is widespread,” said the report.
The think tank added that AI could also accelerate innovation in sustainable energy technologies such as batteries and solar photovoltaics, thus contributing to the global climate goals.
Symbols of power: Saudi Arabia and UAE stamp their marks on global finance
RIYADH: In a display of economic ambition, Saudi Arabia and the UAE have unveiled new currency symbols for the riyal and dirham, marking a pivotal moment in their quest for global recognition.
Within just a few weeks of each other, the two Gulf powerhouses introduced these symbols — a strategic move designed to elevate their currencies on the world stage, signaling modernization, stability, and a vision for the future of trade and digital finance.
Saudi Arabia took the lead as King Salman approved the launch of a new riyal symbol in late February. The design, rooted in Arabic calligraphy, merges cultural heritage with modernity — a reflection of the Kingdom’s Vision 2030 ambitions.
In an interview with Arab News, economist and policy adviser Mahmoud Khairy said: “Currency symbols play a vital role in shaping how people view a nation’s money, and introducing new symbols for the riyal and dirham could help position them as modern and independent currencies.”
He added that a well-crafted symbol fosters national pride and distinguishes these currencies from others, crucial for gaining international recognition.
When it was revealed, Saudi Central Bank Gov. Ayman Al-Sayari described the symbol as a reinforcement of the riyal’s identity both domestically and internationally.
The design comes as Saudi Arabia embraces digital transformation, having joined Project mBridge, a multinational CBDC initiative that includes China, Hong Kong, Thailand, and the UAE. This move underscores the Kingdom’s commitment to reshaping global trade through blockchain technology.
The UAE followed closely, revealing the new dirham symbol, a sleek and meaningful design that blends the English letter “D” with two horizontal lines symbolizing financial strength.
The inclusion of elements from the UAE flag underscores national pride while reinforcing the currency’s role in international markets.
The Central Bank of the UAE emphasized that the symbol will soon be integrated into global typographical fonts, ensuring the dirham stands alongside the US dollar, British pound, and euro as a recognizable financial emblem.
This rebrand is not merely cosmetic. It coincides with the UAE’s adoption of the FX Global Code, making the CBUAE the first central bank in the Arab world to join this framework, which promotes transparency and best practices in foreign exchange markets.
Additionally, the UAE is pushing forward with its digital dirham, a blockchain-based central bank digital currency set to revolutionize financial transactions.
CBUAE Gov. Khaled Mohamed Balama has hailed the initiative as a leap forward for financial inclusion, security, and efficiency.
The digital dirham will feature smart contracts, tokenization for fractional asset ownership, and seamless cross-border payments — positioning the UAE as a leader in the digital economy.
The bigger picture: a strategic assertion of financial independence
The introduction of these symbols is far more than a typographical update — it is a calculated assertion of financial independence.
Historically, dominant currencies such as the dollar and euro have enjoyed instant recognition through their symbols, reinforcing their influence in global markets.
By establishing their own, Saudi Arabia and the UAE are declaring their currencies as serious contenders in international trade and finance.
“The new currency symbols for the Saudi riyal and UAE dirham are more than design updates. They’re strategic instruments of soft power and economic diplomacy,” said Andreas Hassellof, CEO of tech firm Ombori. “By embedding cultural identity into global financial language, both nations are signaling a readiness to elevate the riyal and dirham on the world stage.”
Hassellof believes that familiar symbols create a perception of legitimacy, influencing how currencies are referenced, traded, and held.
Arun Leslie John, chief market analyst at investment planning firm Century Financial, told Arab News that the rebranding reflects economic confidence and institutional maturity, which are key to attracting foreign direct investment.
“The new logos will bring more visibility in cross-border transactions, making the UAE dirham and Saudi riyal practical as invoicing currencies for trade, thereby reducing reliance on traditional denominations like the dollar and euro,” he said.
The UAE dirham has already been ranked among the top 10 most traded currencies by a leading UK forex provider, signaling its growing prominence. Saudi Arabia, with its vast oil wealth and economic diversification efforts, is similarly positioning the riyal as a currency of stability and innovation.
The digital frontier: reshaping finance and inclusion
Both nations are leveraging these rebrands to accelerate their digital finance agendas.
The UAE’s digital dirham, part of its Financial Infrastructure Transformation Programme, will be legally recognized as a universal payment method, available through banks, fintech firms, and exchange houses. Its features — such as instant settlement and automated smart contracts — promise to redefine financial transactions.
“The rollout of digital currencies, particularly the UAE’s blockchain-based digital dirham, represents a bold leap toward a more efficient and inclusive financial ecosystem,” said Hassellof.
“Traditional cross-border transactions are slow and feel-heavy, especially for smaller enterprises and remittance flows. Digital currencies remove these frictions, enabling near-instant settlement at a fraction of the cost.”
Century Financial’s Leslie John highlighted the operational benefits, stating: “The UAE’s mBridge will facilitate intra-regional payments at a faster pace, with fast settlement terms and smart contracts of the digital dirham enabling trade finance flows, minimizing operating costs, and improving efficiency.”
He also emphasized how tokenization allows fractional ownership of assets, opening investment opportunities for SMEs and retail investors.
Khairy pointed to the broader economic implications, saying: “Digital currencies like the UAE’s digital dirham or Saudi Arabia’s CBDC pilot aren’t just tech experiments — they could reshape how trade is settled, how foreign investors view regional stability, and how citizens connect with their economies.”
He stressed that faster, cheaper cross-border payments could make Gulf economies more attractive to global partners.
Saudi Arabia, meanwhile, is integrating its new riyal symbol into digital and physical transactions, with plans for gradual implementation across financial platforms. Its participation in Project mBridge highlights a shared Gulf vision for blockchain-powered trade efficiency.
A unified Gulf financial future?
The parallel moves by Saudi Arabia and the UAE suggest deeper monetary cooperation could be on the horizon. “Today’s digital dirham and symbolic riyal may well be the foundation stones of tomorrow’s unified Gulf financial future,” said Hassellof.
Leslie John expanded on this, saying: “The simultaneous digital money and rebranding moves by Saudi Arabia and the UAE present the potential for further deepening monetary integration of the Gulf Cooperation Council, paving the way for interoperable payment mechanisms or even a future digital GCC currency union.”
Navigating the chaos: How GCC’s trade war survival plan could take shape
- GCC economies have built a notable buffer against immediate shocks through a decade of reforms, fiscal discipline and diversification efforts.
- The region faces mounting long-term challenges that could erode economic resilience.
RIYADH: The Gulf bloc must fast-track diversification, strengthen regional integration and deepen global ties in Asia, Africa and Latin America to cushion against the long-term impact of newly imposed US tariffs, a top risk strategist has told Arab News.
Mohammad Fheili warned that while the Gulf region has the capacity to withstand short-term turbulence, it remains exposed to the deeper ripple effects of a shifting and increasingly fragmented global trade environment.
President Donald Trump’s sweeping tariffs triggered a new wave of global trade tensions, sending financial markets into a tailspin and prompting urgent diplomatic responses.
With a baseline 10 percent tariff imposed on all imports and a staggering 125 percent levy on Chinese goods, the policy aims to combat what Trump calls unfair trade practices and to revive American manufacturing.
Key US trade partners, including the EU, Japan and South Korea, were also hit with elevated tariffs, drawing strong rebukes and pushing some nations to the negotiating table in hopes of exemptions or revised terms.
“If the region is to shield itself from the long-term consequences of Trump’s trade war, it must take decisive steps — starting now,” Fheili, who also works as an economist, told Arab News.
To avoid long-term vulnerabilities, he urged policymakers across the region to adopt a proactive, multi-pronged strategy.
This includes expanding partnerships beyond Asia to emerging markets in Africa and Latin America, strengthening intra-Gulf Cooperation Council economic integration, and boosting domestic demand by investing in wage growth, labor reforms and support for small and medium-sized enterprises.
“Strategic patience, economic flexibility and deeper regional integration will be essential to navigating what lies ahead,” Fheili said.
These measures, he noted, were essential in transforming the GCC from a strategically positioned bloc into a globally competitive economic force.
The market reaction to Trump’s tariff announcement was swift and severe: US indices plunged, with the S&P 500 falling nearly 10 percent in the first two days, while global exchanges echoed the selloff amid fears of a prolonged economic downturn.
“US markets initially spiked after hours following the tariff announcement on April 2, but the rally lasted only minutes before a sharp reversal sent markets tumbling,” Makram Makarem, senior director at Investment and Capital Bank, told Arab News.
“By the close on April 3, US indices were down by around 5 percent. The following day brought more turmoil, as China’s retaliatory measures triggered an additional 6 percent drop,” he added.
“After some breathing room on April 7 and into the morning of April 8, markets staged a modest rebound. But later that afternoon, Trump’s announcement of even higher tariffs on China triggered another wave of selling — though losses remained above Monday’s lows,” Makarem said.
Trump later introduced a 90-day pause on most global tariffs but simultaneously hiked levies on Chinese goods to 125 percent.
“Markets reacted positively to the pause, with the S&P 500 surging 9.5 percent as investors welcomed the temporary relief despite rising friction with China,” Makarem said.
Trump has insisted the tariffs could become permanent unless trade imbalances are corrected, casting a long shadow over global supply chains and export-driven economies.
While the GCC countries were spared the harshest penalties, the ripple effects — especially through weakened global oil demand and investor caution — pose indirect risks to the region’s economic outlook.
“While the GCC has so far managed to stay out of the direct line of fire, it cannot avoid the indirect exposure to global economic turbulence,” according to Fheili.
“In the short term, GCC states may be able to absorb the initial shockwaves. But if this trade war persists, the structural weaknesses of the region’s economies will be tested — and possibly exposed,” he said.
Short-term resilience
GCC economies have built a notable buffer against immediate shocks through a decade of reforms, fiscal discipline and diversification efforts.
National strategies such as Saudi Arabia’s Vision 2030 and the UAE’s economic transformation agenda have laid the groundwork for expanding non-oil sectors such as tourism, logistics and financial services.
The region has also strengthened trade ties beyond traditional partners, deepening economic relationships with fast-growing markets in Asia and Africa. Sovereign wealth funds and robust central banking systems further support macroeconomic stability.
Moreover, President Trump’s recent tariff policy notably spares oil and gas imports — offering near-term relief for the GCC’s energy-dependent economies and preserving their most critical revenue stream amid rising global uncertainty.
“Countries like Saudi Arabia, the UAE and Kuwait have built significant reserves through sovereign wealth funds, providing liquidity and investment continuity even during global slowdowns,” said Fheili.
Turning to Saudi Arabia, the analyst said that the Kingdom is well-positioned to benefit from shifting global dynamics.
“In a fragmented trade environment, energy security becomes even more critical. Saudi Arabia’s vast oil and LNG resources remain attractive to countries seeking reliable long-term partners, potentially locking in stable export relationships,” he said.
Long-term trade turbulence requires structural overhaul
As the global trade environment shifts toward deeper fragmentation, the GCC faces mounting long-term challenges that could erode the region’s economic resilience.
While the initial shock of US tariffs may spare the GCC from direct impact, Fheili warns that prolonged trade conflict poses far-reaching risks — especially for nations still reliant on hydrocarbon exports and global capital flows.
Indeed, weakening global industrial output could shrink demand for petrochemical exports, a major revenue stream for Saudi Arabia and Qatar. Tightened US export controls may also complicate technological and defense cooperation with American firms, further entrenching strategic vulnerabilities, according to the expert.
Despite visionary plans such as Saudi Vision 2030, many structural weaknesses persist.
“Diversification is still in its early stages,” Fheili said. He added: “The non-oil economy, while growing, isn’t yet mature enough to offset a drawn-out global slowdown.”
The region’s reliance on imports — from food to industrial equipment — adds another layer of exposure. If global supply chains continue to strain, the GCC could face inflationary pressures and shortages.
Additionally, China, the Gulf’s largest oil customer, remains deeply entangled in the trade war crossfire. A slowdown in Chinese energy demand would reverberate across the Gulf’s public finances, Fheili said.
Fiscal disparities across the bloc could also widen the gap between nations including Saudi Arabia and the UAE — armed with sovereign wealth reserves — and more vulnerable economies such as Bahrain and Oman. Meanwhile, intra-GCC trade remains modest, limited by overlapping sectors and weak integration.
“A more connected and cooperative Gulf economic bloc could serve as a buffer against global headwinds,” said Fheili, adding: “The time is ripe to turn the GCC from a strategic alliance into a true economic force.”
Strengthening domestic demand and supporting small and medium enterprises will also be crucial in buffering external shocks. Furthermore, leveraging strategic assets — such as gold reserves, energy logistics and emerging green technologies — can provide the GCC with an edge in a shifting global order.
According to Fheili, one of the most underused tools may be gold. In the Gulf, it is more than a hedge — it is heritage, trade and untapped financial strategy. As global faith in fiat currencies wavers, GCC central banks can treat gold not just as a stabilizer, but a strategic asset that reinforces financial sovereignty and hedges against geopolitical volatility.
“Resilience must evolve from a cushion into a capability,” he added.
SRMG among LinkedIn’s top 15 companies in Saudi Arabia for 2025
RIYADH: Riyadh-based SRMG was included in “LinkedIn’s Top 15 Companies 2025: The 15 best workplaces to grow your career in Saudi Arabia,” the sole media organization who made it in the prestigious list.
“This recognition underscores SRMG’s unique position as a trailblazer in the media sector and its commitment to talent empowerment, human-centric transformation and digital acceleration,” SRMG, the leading integrated media group in the Middle East and North Africa region, said in a statement.
“This recognition, stemming from LinkedIn’s data-driven assessment of career growth opportunities, skills development, and workplace equity, reaffirms SRMG’s ongoing transformation that commenced in 2021 with a bold strategy emphasizing innovation, digital-first operations, and the cultivation of future-ready teams.
“The ranking is built on LinkedIn’s proprietary analysis across seven key pillars: opportunities for advancement, skills growth, company stability, external opportunities, company affinity, gender diversity, and educational background,” SRMG added.
SRMG has redefined its brand after launching its transformation strategy, and has expanded into new platforms and embraced cutting-edge technologies to attract top regional and global talents while investing in leadership development and upskilling.
Arab News is one of the SRMG’s media brands.
ITFC inks $45m energy deal with Comoros
RIYADH: The International Islamic Trade Finance Corporation has signed a €40 million ($45.43 million) Murabaha financing agreement with the African nation of Comoros to support its energy sector, the Saudi Press Agency reported.
A member of the Islamic Development Bank Group, ITFC stated that the funding will ensure a stable supply of refined petroleum products and help drive growth in vital sectors such as agriculture, manufacturing, and services.
The agreement aligns with the UN’s Sustainable Development Goal 7, which focuses on ensuring universal access to affordable, reliable, sustainable, and modern energy by 2030.
It aims to increase renewable energy adoption, enhance fuel efficiency, and expand infrastructure in developing countries..
This financing deal addresses Comoros’ immediate energy needs while enhancing its resilience to global supply disruptions by guaranteeing uninterrupted fuel access for its economy.
ITFC has a long-standing track record of delivering trade finance solutions to member countries, particularly those with developing economies.
Its latest agreement with Comoros reflects a broader commitment to strengthening cooperation with African nations and supporting inclusive, sustainable development across the region.
ITFC has provided Comoros with over $657 million in total financing since its inception in 2008, underscoring a strong and enduring partnership.
This latest Murabaha deal is part of a broader $330 million framework agreement signed in September 2023, which is expected to meet up to 100 percent of Comoros’ annual petroleum needs — a transformative step toward national energy security and long-term development.
ITFC serves as the trade finance arm of the Islamic Development Bank Group and has provided over $83 billion in financing to OIC member countries. Its mission is to promote trade, improve socio-economic conditions, and offer member countries access to finance and trade development tools.
Murabaha, a widely used Islamic finance structure, complies with Shariah law by avoiding interest-based lending. It is commonly employed for trade finance purposes, including the procurement of energy products, raw materials, and equipment — making it especially relevant in development-driven financing, such as this agreement with Comoros.
