Saudi Arabia to Open First Financial Center with Unified Policies, Guidelines

The Leadership Forum for the Transformation to Accrual Accounting was organized by the Ministry of Finance in Riyadh on Tuesday. (Asharq Al-Awsat)
The Leadership Forum for the Transformation to Accrual Accounting was organized by the Ministry of Finance in Riyadh on Tuesday. (Asharq Al-Awsat)
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Saudi Arabia to Open First Financial Center with Unified Policies, Guidelines

The Leadership Forum for the Transformation to Accrual Accounting was organized by the Ministry of Finance in Riyadh on Tuesday. (Asharq Al-Awsat)
The Leadership Forum for the Transformation to Accrual Accounting was organized by the Ministry of Finance in Riyadh on Tuesday. (Asharq Al-Awsat)

Chairman of the Steering Committee at the Ministry of Finance, Abdulaziz Al-Furaih, announced on Tuesday that Saudi Arabia was preparing to open the first financial center, which will be based on an integrated system of unified and harmonized standards, policies and guides at the national level.

Al-Furaih noted that the move aims to increase the efficiency of the government’s financial and accounting performance, adding that converting the entity to the accrual basis according to the new system would provide accurate and comprehensive financial information that supports decision-making.

“It also enables performance evaluation, setting targets and accountability, objectivity, and other benefits that improve the capabilities of the entity and the system in all financial and economic fields,” he underlined.

Al-Furaih’s remarks came during the opening of the Leadership Forum for the Transformation to Accrual Accounting, which was organized by the Ministry of Finance in Riyadh on Tuesday.

He pointed to the issuance of more than 190 opening balance lists for the year 2022, equivalent to 95 percent of the target in the number of lists, and more than 180 transitional financial lists for the same year, or 90 percent of the target.

He stressed that the transformation achievements would be followed by additional steps that emphasize the sustainability of business on an accrual basis and enhance the gains.

Deputy Minister of Finance for Financial Affairs and Accounts Hamad Al-Kanhal said the shift to the accrual basis is one of the Vision 2030 initiatives, adding that it is the appropriate basis for building financial information that supports the decision-making process.

Al-Kanhal stated that the Accounting Merit Pioneers program is one of the transformation management tools that was launched at the Merit Center to support and create competitiveness among government agencies with the aim of stimulating and accelerating transformation within the concerned entities.



PIF, Goldman Sachs Asset Management Sign MoU to Partner on Investment in Saudi Arabia, GCC 

Officials are seen at the signing agreement on Monday. (SPA)
Officials are seen at the signing agreement on Monday. (SPA)
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PIF, Goldman Sachs Asset Management Sign MoU to Partner on Investment in Saudi Arabia, GCC 

Officials are seen at the signing agreement on Monday. (SPA)
Officials are seen at the signing agreement on Monday. (SPA)

Saudi Arabia's Public Investment Fund (PIF) and Goldman Sachs Asset Management announced on Monday the signing of a non-binding memorandum of understanding (MoU) for PIF to act as a strategic anchor investor for new private credit and public equity strategies in Saudi Arabia and the wider GCC region.

The new investment funds will aim to raise equity capital from international investors, with significant capital allocated for investments in Saudi Arabia.

The MoU would further strengthen the domestic asset management industry and encourage regional and international managers to expand their presence in Saudi Arabia. Asset management is part of PIF's wider efforts to diversify the Saudi economy and enhance local capital markets.

Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said: “PIF's collaboration with Goldman Sachs Asset Management demonstrates our continued efforts to build new partnerships with a diverse range of leading international financial institutions, enhancing local markets.”

“MoU is another element in PIF's strategy of attracting global capital and expertise from a wide range of investors to the region while facilitating knowledge transfer and capacity-building within Saudi Arabia,” he stressed.

Global Head of Asset and Wealth Management at Goldman Sachs Marc Nachmann said: “We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients.”

“Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC's rapid economic transformation. We are excited to see this partnership expand and to continue building our presence in Saudi Arabia,” he added.

Under the MoU, the private credit strategy will target directly originated senior and junior loans and debt to companies that are domiciled in the GCC region or do most of their business with it. The public equity strategies will focus on investments in publicly listed equity securities of companies that are either listed on the Saudi exchange or have businesses connected to Saudi Arabia.

The partnership will facilitate knowledge-sharing to spur growth of the Saudi asset management sector. By leveraging PIF's institutional strength and Goldman Sachs Asset Management's experience investing across public and private markets, it will contribute toward PIF's goal of positioning Saudi Arabia as a hub for global investment.

Goldman Sachs has been growing its presence in Saudi Arabia over recent years, having recently announced the opening of a new office in Riyadh. The company will explore expanding its local footprint as part of the partnership.

Monday's non-binding MoU remains subject to the satisfaction of certain required conditions including obtaining all necessary regulatory and internal approvals, among other milestones.