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Huawei on why digitalisation remains a primary driver of economic growth

On the back of this year’s Mobile World Congress, Steven Yi, President of Huawei Middle East, tells ITP.net about how the company is looking to accelerate growth, security, and sustainability within the region’s digital economy

Steven Yi, President, Huawei Middle East

Huawei’s chairman recently alluded to increased investments in reshaping the technological paradigm. What does this mean for Middle East organisations?

Those remarks by our rotating chairman underscore Huawei’s commitment to continue with its globalisation strategy, including the delivery of new business and social value to our customers in the Middle East. We feel we are best suited to deliver this value by increasing our investments in foundational technologies that reshape the current technological paradigm. Our R&D investments over the past decade have exceeded $110 billion, with more than 10 percent of Huawei’s sales revenue going back into R&D.

In particular, our ambition is to reshape the fundamental theories, architectures, and software that underpin the ICT sector. Countries in the Middle East are keen to adopt these advances, as we saw with the introduction of 5G, and as we are seeing with the integration of technologies like 5G, cloud, and AI to benefit vertical industries. By doing this, we not only support the sustainability of the ICT industry, but increase our own mid to long-term competitiveness.

Huawei: Matching the region’s digital talent pipeline to future industry needs

Some forecasts suggest that over 50 percent of the global economy will be digitalised in 2022. Does this hold true, in your view?

In our discussions with businesses and governments in the region, we’ve seen the terms “digital economy” and “economy” becoming increasingly interchangeable. In the past two years specifically, the digital acceleration we have witnessed has put the region on a path that is now unstoppable. Progress does vary from country to country and sector to sector, of course. But the reality is that digitalisation—and data—will remain a primary driver of economic growth for years to come. In our own Intelligent World 2030 report, for example, experts cite that the total volume of global data increased by 30% year-on-year from 2016 to 2020. Assuming this rate continues at a minimum, the world’s total data will increase 14-fold over the next decade.

Are you concerned with what appears to be increasing global politicisation of technologies like 5G, AI and others?

Humanity has benefitted immensely from global collaboration on ICT standards and joint innovations within common ecosystems. As a result, we have seen a growing consensus among the international community warning of the dangers of recent political polarisation influencing technology development. Whether it is in standards, supply chains, talent development, or other areas, it is important that our industry look up above politics and partisanship—looking to what is ahead for the benefit of society.

In the sustainability space, are you expecting more momentum on green ICT this year following discussions at MWC 2022 and as the COP26 goals start to take shape?

Sustainability certainly remains a significant theme for Huawei. We are strong supporters of the region’s green ambitions and the strategies of countries like the UAE, Saudi Arabia and others to move towards carbon neutrality. Many of our partners across the technology landscape also desire to participate in climate change action. This movement involves innovating green low-carbon networks and data centres while promoting clean energy development. We are doing this today through Huawei Digital Power including many strategic projects in the Middle East.

One of the priorities we see within the ICT industry itself is supporting telecom carriers to optimise energy by building energy-efficient sites, networks, and operations. This helps them to reduce their carbon footprint while lowering energy expenses to meet their cost reduction goals. This is the essence of our “More Bits, Less Watts” strategy.

With more of the world going digital, how much of a priority was cybersecurity at MWC, and what does it imply for organisations in the Middle East?

Cybersecurity remains a real threat for businesses and governments worldwide. While organisations have relied on point solutions and siloed platforms to insulate themselves from cybercrime, it is now apparent that collaboration—not isolation—is the best way to tackle cyber threats. Cybersecurity is not a one-person job. It is a shared responsibility. Governments, standards organisations, and technology providers need to work closer together to develop a unified understanding of cybersecurity challenges.

This is a perspective shared by many in the Middle East today. It is why realising the execution of such norms by regional groups, such as the OIC in the Middle East, is something we all should be focusing on.  This will give the general public, businesses, and regulators a reason to trust in the security of the products and services they use on a daily basis.

5G is now a mature technology in the region. What does it mean for us to be in the “gigaverse era”, and what do Middle East carriers need to do to accommodate the massive increase in bandwidth demand?

This term recognises that the demand for bandwidth is expanding at an unprecedented rate. Telecom carriers must therefore be ready to support a gigabit experience for everyone—consumers and businesses alike. That requires expanding gigabit coverage everywhere that can support the digital transformation of all industries. A new generation of ultra-wideband and multi-antenna technologies are now being designed to further improve network performance while also maintaining energy efficiency. Cloud-oriented networks are also being designed to support Middle East carriers to build 5G use cases across new industries, and achieve more success in those projects.

Huawei recently announced plans to expand its cloud regions in the Middle East. What other plans do you have lined up in the cloud service market?

We are deeply engaged in digitalisation as a service—with key pillars being infrastructure, technology, and expertise as a service. This is seen in our collaborations with telecom carriers to build the cloud foundation for an intelligent world. Based on over 30 years of expertise in ICT technologies, products, and solutions, HUAWEI CLOUD now provides global carriers with deployment modes built on cloud-native distributed architecture and multiple sales models.

Moreover, HUAWEI CLOUD is committed to growing with partners throughout the Middle East. Last year, for example, we announced investing $15 million in the Middle East HUAWEI CLOUD Oasis program to assist 3,000 experts, support over 1,500 consulting and technical partners, and empower more than 100 SMEs to develop their cloud capabilities.