GAMI Establishes Human Capital Roadmap in Saudi Military Industries

GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
TT

GAMI Establishes Human Capital Roadmap in Saudi Military Industries

GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)
GAMI announces the human capital strategy for local military industries sector. (Asharq Al-Awsat)

The Saudi General Authority for Military Industries (GAMI) launched the human capital strategy for the local military industries sector.

Saudi ministers stressed the importance of localizing the military sector to enhance skills and support the development system through the required policies and regulations.

The ministers indicated that GAMI has a clear strategy regarding distinguished human resources and reliance on national cadres targeting 50 percent localization of national military spending by 2030.

The officials attended the launch of the human capital strategy for the local military industries sector, stressing the need to bridge the gaps and needs of the labor market in the Kingdom in many areas, namely the military and defense industries.

The strategy contributes to bridging the gap between the skills required in the sector and the outputs of university education and technical and vocational training, focusing on more than 800 required skills, resulting in 30,000 technicians, 25,000 services jobs and 12,000 engineers.

Investment strategy

Minister of Investment Khalid al-Falih stressed the importance of the partnership between the public and private sectors in education and training, noting that they help achieve spending efficiency and promote a flexible mechanism in line with the labor market requirements.

Falih said that the national investment strategy has several initiatives that enable competitiveness and investment development, indicating that the ministry's role lies in linking all parties, providing capabilities and attracting investors.

"The localization rate in the military industries sector is promising and rising," he said.

Labor market

For his part, Minister of Human Resources and Social Development (MHRSD) Ahmad al-Rajhi stated that GAMI developed the human capital strategy, coupled with complementary plans to localize the sector.

Rajhi revealed that over 1.9 million citizens work in the private sector, proving that national cadres have succeeded in the economy.

The minister also indicated that 400,000 Saudis joined the labor market in 2021, describing it as a historical number that reflects the strong desire to accelerate the economy and participate in Vision 2030.

"We can bet on the Saudi young people after they showed their ability to bear responsibility and succeeded in all sectors, including the banking, petrochemicals, services, trade, and contracting," Rajhi said, pointing out that the ministry launched 32 Saudization decisions in 2021.

Industrial system

Minister of Industry and Mineral Resources Bandar Alkhorayef announced that the sector's new strategy would focus on increasing locally sourced inputs and adopting 4IR technologies.

He stressed that the two pillars guarantee a competitive and sustainable industrial line at the local and global levels.

GAMI is making significant efforts to create opportunities in the sector, creating a globally competitive industrial sector by converting 4,000 factories to use fourth industrial revolution technology.

Alkhorayef explained that his ministry responds to the directions of the government and issues monthly reports on human capital data in the industrial sector.

The ministry created over 39,000 job opportunities during 2020 and doubled that number to reach 77,000 jobs in 2021.

Human capital strategy

GAMI launched the human capital strategy for the local military industries sector at the Ritz-Carlton Hotel in Riyadh, with several ministers and officials from the government and private sectors.

GAMI Governor Ahmed al-Ohali said the Kingdom is moving towards the localization of this promising sector, aiming to reach more than 50 percent of government spending on military equipment and services by 2030.

The plan aims to develop industries, research, technologies, and national competencies and provide job opportunities for Saudi youth, increasing the sector's contribution to the national economy.

He indicated that the strategy aims to establish a stimulating system for the development of human cadres to ensure their readiness to achieve the Saudization goals of the sector.

"It is based on the strategy for localizing industries and research in the military industry sector to ensure the readiness and sustainability of people eligible to achieve the objectives of the sector localization," the GAMI governor said.

The human capital strategy aims to enable and build a stimulating system for the development and empowerment of human cadres. It will ensure the readiness and sustainability of qualified forces to localize the sector by developing three main programs represented in educational and training programs.

He pointed out that the strategy aims to empower Saudi workforces by developing training programs and establishing a national academy that focuses on more than 800 skills required in the sector, from 172 job fields.

Ohali added that the strategy's programs included many initiatives, such as the new national military academy to address the skills gap in the industry, with the support and empowerment of the Technical and Vocational Training Corporation and the Human Resources Development Fund (HRDF).

Partnership system

Three dialogue sessions were held during the launch of the human capital strategy for the military and defense industry sector in the Kingdom with ministers, senior officials, and specialists of human resources.

The event began with a ministerial discussion entitled "The Role of the National System in Empowering Human Capital in the Military and Defense Industries to Achieve the Objectives of Vision 2030."

It was attended by ministers of investment, industry and mineral resources, and human resources and social development.

The session addressed investment opportunities and reforms necessary to ensure the establishment of qualitative and effective partnerships and to bridge the gaps and needs of the labor market in the Kingdom.

The ministers stressed the importance of preparing future generations to enter the labor market.

The second session, "The Role of the Military and Defense Industries in Creating Diversified Career Paths," addressed the development and empowerment of the human element.

They discussed their impact on human resources in developing and empowering and developing talents, skills, and expertise through specialized technical and professional training programs.

The session was attended by the Chairman of the Board of Directors of the Education and Training Evaluation Commission Khaled al-Sabti, Chief of Staff First Lieutenant-General Fayyad al-Ruwaili, Governor of GAMI, and Governor of the Technical and Vocational Training Corporation Ahmed al-Fahid.

The development

The ceremony concluded with the third session: "The Role of Education and Training in Developing, Empowering, and Preparing Human Capital for the Military and Defense Industries."

The attendees discussed the importance of the human resources strategy project in advancing the sector's development by aligning the outputs and programs of educational institutions with the needs.

They also addressed forming partnerships with other key industries, aiming to develop qualified human capital to lead the future of this sector.

The session was attended by President of the King Fahd University of Petroleum and Minerals Mohammad al-Saqqaf, General Manager of the Human Resources Development Fund (Hadaf) Turki al-Jawini, CEO of the Saudi Arabian Military Industries (SAMI) Walid Abu Khaled, and CEO of Lockheed Martin Saudi Arabia Ltd. Joseph Rank.

Agreements and partnerships

On the sidelines of the ceremony, several memoranda of understanding (MoU) relating to the development and empowerment of human capital in the military and defense industries sector were announced between GAMI, the Ministry of Investment, and the UK-based Cranfield University.

GAMI also signed an MoU with Leonardo Company to create and develop investment opportunities in education and train specialized military industries.

The MoU establishes cooperation to identify and develop institutional and academic partnerships in the Kingdom, develop some programs and graduation projects, and launch short and long courses relating to the sector's needs.

It also creates opportunities for university educational scholarships in the military, defense, and security industries.

The MoU calls for cooperation in basic and applied scientific research and creates majors in the military and defense industries with educational and training authorities.



Riyadh Air Strengthens Partnership with Saudi Tourism Authority to Promote Sector

Riyadh Air concluded a memorandum of understanding with the Saudi Tourism Authority (STA) to boost joint cooperation. (Asharq Al-Awsat)
Riyadh Air concluded a memorandum of understanding with the Saudi Tourism Authority (STA) to boost joint cooperation. (Asharq Al-Awsat)
TT

Riyadh Air Strengthens Partnership with Saudi Tourism Authority to Promote Sector

Riyadh Air concluded a memorandum of understanding with the Saudi Tourism Authority (STA) to boost joint cooperation. (Asharq Al-Awsat)
Riyadh Air concluded a memorandum of understanding with the Saudi Tourism Authority (STA) to boost joint cooperation. (Asharq Al-Awsat)

Riyadh Air, which is owned by the Public Investment Fund, concluded a memorandum of understanding with the Saudi Tourism Authority (STA) to boost joint cooperation as part of the national carrier’s efforts to shape the future of tourism in the Kingdom and advance air travel.

The new partnership, which was signed at Arabian Travel Market (ATM) in Dubai, focuses on several key areas, including new routes and destinations, joint marketing activities, sponsorship opportunities, presence at key roadshows and international events and accessibility to tourism-related platforms.

It also aims to explore collaboration in loyalty programs, leverage world-leading technology and new digital methods and engage in the Tourism Accelerator Program.

The agreement is in line with Riyadh Air’s vision to connect the Kingdom to more than 100 destinations around the world by 2030,. The two sides will cooperate to launch many initiatives and improve the level of services provided to tourists.

STA CEO Fahd Hamidaddin said: “Increasing Saudi’s connectivity with the world is a key pillar of our tourism strategy and will ensure we sustain our rapid growth and meet our new ambitious target of 150 million visits by 2030.”

The Kingdom, and Riyadh in particular, is preparing to receive millions of new tourists, thus cooperation with the key players in the sector, such as Riyadh Air, has become necessary to provide the best services and experiences to the visitors, he added.

Riyadh Air CEO Tony Douglas said: “This is another momentous day for Riyadh Air. Working alongside the STA to elevate the travel experience for our guests and those coming to visit the Kingdom of Saudi Arabia signifies what we’re all about.”

“We are elevating standards across the board in aviation to previously unseen levels. We have a shared commitment to travel and tourism in the Kingdom along with our forward-thinking approach to innovation, sustainability, and the satisfaction of our guests,” he stressed.


Gulf Carriers Hope Boeing Will Handle Delivery of Aircraft Orders

President of Dubai Airports, Supreme President and CEO of Emirates Airlines Sheikh Ahmed bin Saeed Al Maktoum during his tour of the company’s pavilion at the Arabian Travel Market in Dubai. (Asharq Al-Awsat)
President of Dubai Airports, Supreme President and CEO of Emirates Airlines Sheikh Ahmed bin Saeed Al Maktoum during his tour of the company’s pavilion at the Arabian Travel Market in Dubai. (Asharq Al-Awsat)
TT

Gulf Carriers Hope Boeing Will Handle Delivery of Aircraft Orders

President of Dubai Airports, Supreme President and CEO of Emirates Airlines Sheikh Ahmed bin Saeed Al Maktoum during his tour of the company’s pavilion at the Arabian Travel Market in Dubai. (Asharq Al-Awsat)
President of Dubai Airports, Supreme President and CEO of Emirates Airlines Sheikh Ahmed bin Saeed Al Maktoum during his tour of the company’s pavilion at the Arabian Travel Market in Dubai. (Asharq Al-Awsat)

President of Dubai Airports, Supreme President and CEO of Emirates Airlines Sheikh Ahmed bin Saeed Al Maktoum hoped that the new management of US-based Boeing will address delays in aircraft deliveries.

Addressing journalists on the sidelines of the Arabian Travel Market in Dubai, he noted that discussions with Boeing regarding aircraft delivery dates were underway, stressing that the delay is hampering plans, including expansion operations and fleet size.

The statements of the president of Emirates Airlines are consistent with Gulf airlines that are awaiting clear initiatives from the US aviation manufacturing giant to address deliveries.

Gulf airlines account for a large portion of aircraft purchases from the American Boeing. Sources told Asharq Al-Awsat that those had no other options other than Boeing or Airbus, the European company, which is also facing massive purchase orders.

Boeing has recently been exposed to a series of safety-related incidents, including an emergency landing due to mechanical failures.

On Monday, the US Civil Aviation Administration (FAA) announced that it had opened an investigation against Boeing to determine whether the American aircraft manufacturing giant had conducted the required safety inspection for all 787 Dreamliner airplanes.

Sheikh Ahmed bin Saeed stressed that Dubai needs a future airport that will serve the increasing growth in the coming years, noting that the new Al Maktoum Airport is in line with the Dubai 33 agenda.

“Dubai International Airport recorded about 87 million passengers in 2023 and is expected to receive more than 90 million passengers in 2024,” he said.

He explained that the transfer of Emirates Airlines to Al Maktoum International Airport will be made in one phase, adding that the airlines will operate from the airport directly upon its opening.

Regarding the geopolitical situation in the region, he noted that the company is making flexible future plans for passenger transport operations to adapt to challenges.


Saudi Arabia Aims to Boost Polymer-based Manufacturing Industries

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah. (Asharq Al-Awsat)
Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah. (Asharq Al-Awsat)
TT

Saudi Arabia Aims to Boost Polymer-based Manufacturing Industries

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah. (Asharq Al-Awsat)
Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah. (Asharq Al-Awsat)

Deputy Minister of Industry and Mineral Resources for Industrial Affairs Eng. Khalil bin Salamah said Saudi Arabia aims to achieve a fourfold increase of production in polymer-based manufacturing industries by 2035.

Speaking to Asharq Al-Awsat on the sidelines of the Riyadh International Industry Week, which kicked off on Monday, the minister underlined the importance of this objective in providing great opportunities for investors.

The event, which concludes on Friday, was inaugurated by Minister of Industry and Mineral Resources, Bandar Alkhorayef at the Riyadh International Convention and Exhibition Center.

The event features four exhibitions: the Saudi Exhibition for Plastics and Petrochemical Industries, the Saudi Exhibition for Printing and Packaging, the Saudi Exhibition for Smart Logistics Services, and the Saudi Exhibition for Smart Manufacturing.

The event is also an opportunity to discuss fair competition and competitive environment, as well as sustainability and export capabilities. It features a number of activities that aim to support the industry in Saudi Arabia, with the participation of more than 500 companies from 24 different countries.

Bin Salameh said such events highlight the volume of investments expected in the Kingdom, and bolster communication between producing firms, such as Aramco, SABIC, Petro Rabigh, Sadara, and resource consuming companies.

The deputy minister went on to say that the event opens a wide scope for new investments, whether equipment manufacturers or investors, who have found that expansion in this field is feasible.

The automobile industry in Saudi Arabia is notably undergoing a major transformation through the production of electric vehicles and the establishment of factories for local manufacturing.

The Kingdom’s automotive industry is expected to grow 12 percent by the end of the decade thanks to Vision 2030 and its ambitious goals in environmentally friendly mobility and autonomous transportation. The industry will benefit from the Kingdom’s strategic location and investment in advanced technologies.


Riyadh Int’l Industry Week Connects 10,000 Leaders Worldwide

Saudi Arabia’s Deputy Minister of Industry and Mineral Resources Khalil bin Salamah speaks at the event. (Asharq Al-Awsat)
Saudi Arabia’s Deputy Minister of Industry and Mineral Resources Khalil bin Salamah speaks at the event. (Asharq Al-Awsat)
TT

Riyadh Int’l Industry Week Connects 10,000 Leaders Worldwide

Saudi Arabia’s Deputy Minister of Industry and Mineral Resources Khalil bin Salamah speaks at the event. (Asharq Al-Awsat)
Saudi Arabia’s Deputy Minister of Industry and Mineral Resources Khalil bin Salamah speaks at the event. (Asharq Al-Awsat)

Saudi Arabia’s Deputy Minister of Industry and Mineral Resources Khalil bin Salamah highlighted the Kingdom’s strong position in the industry globally, revealing that over 10,000 industrial leaders from around the world gathered at the Riyadh International Industry Week 2024, which kicked off on Monday.

Bin Salamah stressed that Saudi Arabia aims to boost its manufacturing sector, especially in specialized chemicals, which could greatly contribute to the economy by creating more jobs and increasing exports.

He said the strategy includes focusing on 39 priority commodities such as building chemicals and automotive components.

During the event's second day, held at the Riyadh International Convention and Exhibition Center on Tuesday, the deputy minister emphasized Saudi Arabia’s leadership in the petrochemical industry, which plays a crucial role in driving economic growth and supporting related industries, such as automotive and pharmaceuticals.

Bin Salamah added that his ministry is working closely with the Ministry of Energy and other government bodies to strengthen the petrochemical supply chains in Saudi Arabia.

This involves ensuring a steady and competitive supply of petrochemical materials for producing specialized products, boosting growth, and exports in the sector.

They’re also focused on building specialized industrial complexes that link up with raw material sources or demand centers, offering infrastructure and services to specific industrial clusters.

They have various initiatives in place, including product development, promoting local content, and empowering exports.

“We aim to lead private sector investment in manufacturing industries and capitalize on the Kingdom’s rapid growth. Collaboration between basic and advanced companies is key to developing businesses, creating opportunities, and driving targeted transformation,” emphasized Bin Salameh.

“We're currently working on maximizing production capacities by integrating petrochemical supply chains. This involves addressing challenges related to petrochemical materials. We urge all sector companies to join us in tackling challenges and finding solutions,” he explained.

He stressed that Saudi Arabia aims to bolster its industrial base and diversify the economy, with private sector investment being crucial.


Saudi Arabia, Canada Launch New Phase of Cooperation in Education, Knowledge, Capabilities

The Canadian ambassador said his country is working in partnership with Saudi Arabia to strengthen relations in the educational fields. (Asharq Al-Awsat)
The Canadian ambassador said his country is working in partnership with Saudi Arabia to strengthen relations in the educational fields. (Asharq Al-Awsat)
TT

Saudi Arabia, Canada Launch New Phase of Cooperation in Education, Knowledge, Capabilities

The Canadian ambassador said his country is working in partnership with Saudi Arabia to strengthen relations in the educational fields. (Asharq Al-Awsat)
The Canadian ambassador said his country is working in partnership with Saudi Arabia to strengthen relations in the educational fields. (Asharq Al-Awsat)

Riyadh hosted on Tuesday the first Saudi-Canadian Forum for Educational Partnership, in the presence of Saudi Minister of Education Yousef Al-Benyan and Canadian Ambassador to the Kingdom Jean-Philippe Linteau.

The forum aims to strengthen cooperation and partnerships between educational institutions in the two countries. It witnessed the participation of around 180 experts and stakeholders in the fields of education, health and industry.

Al-Benyan underlined the importance of education in achieving the goals of Saudi Arabia’s Vision 2030, especially in terms of qualifying students to compete globally. He noted that the forum reflected the commitment of Saudi Arabia and Canada to develop the existing strategic partnership between them.

The minister touched on his recent visit to Canada and pointed to many existing opportunities for cooperation in the fields of general and higher education, early childhood programs, teacher development, in addition to medical, technical and vocational training programs.

He stressed the importance of boosting cooperation between the two countries in research and development in priority areas in line with Vision 2030.

In remarks to Asharq Al-Awsat, Linteau said Canada is a committed partner in supporting the Kingdom’s move towards a knowledge-based economy as described in the goals of Vision 2030.

He added that the forum will serve as a platform for dialogue, communication and cooperation in the fields of joint research, technical training, capacity building, student and faculty exchange, curriculum development and opening external centers.

The ambassador said his country is working in partnership with Saudi Arabia to strengthen relations in education due to the importance of this sector in developing human capital and supporting innovation to achieve a prosperous future for the two countries.

The forum aims to explore the most important areas of educational cooperation, such as: information technology, tourism, health care, clean energy, mining, and agriculture, he went on to say.


Saudi Arabia Kicks Off Largest Entertainment Events

Officials are seen at the opening of the exhibitions at the Riyadh Front Exhibition and Conference Center. (Asharq Al-Awsat)
Officials are seen at the opening of the exhibitions at the Riyadh Front Exhibition and Conference Center. (Asharq Al-Awsat)
TT

Saudi Arabia Kicks Off Largest Entertainment Events

Officials are seen at the opening of the exhibitions at the Riyadh Front Exhibition and Conference Center. (Asharq Al-Awsat)
Officials are seen at the opening of the exhibitions at the Riyadh Front Exhibition and Conference Center. (Asharq Al-Awsat)

Saudi Arabia’s Riyadh witnessed on Tuesday the launch of its largest entertainment gathering with the opening of two highly anticipated events - the Saudi Entertainment and Amusement (SEA) Expo, and the Saudi Light and Sound (SLS) Expo.

Over three exciting days, attendees will experience interactive displays, cutting-edge technology, and insights into the future of entertainment. The expos feature local and international experts, government officials, and industry specialists.

Mohannad Al-Abbad, Deputy CEO of Investment and Business Development at the General Entertainment Authority, inaugurated the exhibitions, followed by tours for VIP guests.

Speaking to Asharq Al-Awsat, Majed Aleid, Director of the Entertainment Sector at the Ministry of Investment, noted the Kingdom’s significant progress in the entertainment sector, highlighting its role in boosting quality of life.

The events offer valuable insights and experiences, aiming to enhance cooperation, innovation, and communication among investors, creators, and industry experts globally. They bring fresh ideas and projects to enrich the entertainment scene, he added.

Sarkis Kahwajian from DMG Events, which is organizing this year’s edition of the expos, stressed that this year’s agenda is the most diverse yet, showcasing the latest products and developments in Saudi entertainment.

Saudi Invest, part of the Ministry of Investment, will sign an agreement with Nowaar Entertainment on experiential events and content development.

Dallah Al-Baraka, a multinational company, will partner with Europa-Park, a renowned German amusement park, to offer consulting services, training programs, and equipment sales to support the sector’s growth aligned with Saudi Vision 2030.

Over the next three days, the SEA Expo will showcase new products from various companies.

Speakers from top industry players like Six Flags Qiddiya, SEVEN, Cruise Saudi, and government bodies will discuss topics including the future of Saudi entertainment, local-global brand connections, food and beverages, amusement parks, sustainability, and workforce retention.

At the SLS Expo, visitors can explore lighting, sound, live events, theater tech, and augmented reality.


Saudi Arabia’s flynas Signs Interline Partnership to Open up More Travel Choices via Dubai 

Emirates and Saudi Arabia’s flynas sign an expanded two-way interline partnership with plans to open up connections and more travel choices for flynas customers via Dubai. (SPA)
Emirates and Saudi Arabia’s flynas sign an expanded two-way interline partnership with plans to open up connections and more travel choices for flynas customers via Dubai. (SPA)
TT

Saudi Arabia’s flynas Signs Interline Partnership to Open up More Travel Choices via Dubai 

Emirates and Saudi Arabia’s flynas sign an expanded two-way interline partnership with plans to open up connections and more travel choices for flynas customers via Dubai. (SPA)
Emirates and Saudi Arabia’s flynas sign an expanded two-way interline partnership with plans to open up connections and more travel choices for flynas customers via Dubai. (SPA)

Emirates and Saudi Arabia’s flynas signed on Tuesday an expanded two-way interline partnership on the sidelines of the Arabian Travel Market (ATM), with plans to open up connections and more travel choices for flynas customers via Dubai.

The agreement was signed by Emirates’ Deputy President and Chief Commercial Officer Adnan Kazim and flynas Group CEO & Managing Director Bander Almohanna.

Emirates’ current interline with flynas provides its customers with enhanced connectivity via its four gateways: Riyadh, Jeddah, Madinah and Dammam, to over 15 domestic points in Saudi Arabia. It also includes the convenience of single ticket itineraries with onwards booking and baggage transfers.

With the expansion of the interline to a bilateral arrangement, flynas customers can connect across any of Emirates’ gateways in the Kingdom to a select roster of onward destinations on the airline’s network in the Far East, West Asia & Indian Ocean and Europe, via Dubai.

“We are quite pleased to offer more choices to our customers through Emirates' wide network. Once the expanded interline partnership is activated, customers will be able to book their travel on the flynas website, through online travel agencies as well as with local travel agents,” said Almohanna.

For his part, Kazim said: “The existing flynas links provide our customers with an array of possibilities to travel smoothly across the Kingdom of Saudi Arabia, in particular to business hubs and emerging leisure and cultural destinations.”

“Connecting our networks solidifies our commitment to offering travelers in Saudi Arabia access to even more destinations and helping them benefit from unique travel options. The expansion of our interline agreement demonstrates our commitment to Saudi Arabia, and this is only the beginning,” he added.

“We look forward to exploring more opportunities to widen the scope of our partnership in the future.”

Attending the signing were Emirates Airline & Group Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum, flynas Chairman Ayed Al Jeaid, and other senior representatives from both airlines.


Saudi Minister of Commerce Holds Meetings to Strengthen Economic Partnership with Malaysia

Saudi Minister of Commerce Dr. Majid Al-Qasabi held talks in Kuala Lumpur on Tuesday with Malaysian ministers with the aim of strengthening the economic partnership. (SPA)
Saudi Minister of Commerce Dr. Majid Al-Qasabi held talks in Kuala Lumpur on Tuesday with Malaysian ministers with the aim of strengthening the economic partnership. (SPA)
TT

Saudi Minister of Commerce Holds Meetings to Strengthen Economic Partnership with Malaysia

Saudi Minister of Commerce Dr. Majid Al-Qasabi held talks in Kuala Lumpur on Tuesday with Malaysian ministers with the aim of strengthening the economic partnership. (SPA)
Saudi Minister of Commerce Dr. Majid Al-Qasabi held talks in Kuala Lumpur on Tuesday with Malaysian ministers with the aim of strengthening the economic partnership. (SPA)

Saudi Minister of Commerce Dr. Majid Al-Qasabi held talks in Kuala Lumpur on Tuesday with Malaysian ministers with the aim of strengthening the economic partnership.

The officials included Minister of Entrepreneurship Development, Minister of Entrepreneur Development and Cooperatives Ion Benedick, Minister of Agriculture and Food Security Mohamad Sabu, and Minister of Works Alexander Nanta Linggi.

Saudi Deputy Minister of Commerce and CEO of the National Competitiveness Center Dr. Iman bint Habas Al-Mutairi and Saudi Ambassador to Malaysia Musaed bin Ibrahim Al-Saleem were also present at the meeting.

Discussions focused on Malaysia's experience in supporting small and medium enterprises, as well as cooperation in training, knowledge transfer, innovation, and sustainability.

The meeting was part of a working visit by a Saudi delegation that included 30 officials from the public and private sectors. The visit aimed to boost bilateral trade in products and services and increase the economic partnership between Saudi Arabia and Malaysia. The delegation also participated in the launch event of the Saudi-Malaysian Business Council.

On the first day of the visit, Dr. Al-Qasabi discussed the facilities provided to businesses in both countries with Malaysian officials. He highlighted the Kingdom's efforts to become a global center for trade and logistics services.

Discussions also covered cooperation in building capabilities in innovation, emerging technologies, research programs, and e-commerce.

Additionally, meetings with the Malaysian business sector focused on reforms and legislation related to the business environment, facilities, and advantages that encourage economic activities in the Kingdom and promising opportunities for bilateral partnerships between the two countries' business sectors.

The delegation included senior officials from Saudi government agencies, including the ministries of trade, investment, education, industry and mineral resources, environment, water and agriculture, rural municipal affairs and housing, the Saudi Standards, Metrology and Quality Organization, and the General Authority for Small and Medium Enterprises "Monsha'at".

It also included officials from the Saudi Data and Intelligence Authority, Saudi Export Development Authority, National Competitiveness Center, Saudi Center for Economic Business, and Federation of Saudi Chambers, which was represented by several businessmen of national companies from the business sector.


Standard & Poor's Expects Saudi Real GDP to Grow by 2.2% in 2024, 5% in 2025

S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
TT

Standard & Poor's Expects Saudi Real GDP to Grow by 2.2% in 2024, 5% in 2025

S&P said the banking system in Saudi Arabia remains in good shape (Reuters)
S&P said the banking system in Saudi Arabia remains in good shape (Reuters)

S&P Global Ratings expected the real GDP of Saudi Arabia to grow by 2.2% in 2024, and by 5% in 2025.
In its latest report seen by the Arab World Press, the rating agency said the surge in the non-oil sector will contribute an increasing share of this growth, mainly due to government-led investments in Vision 2030 projects.
On the other hand, S&P projected that banks and capital markets will contribute a significant amount in Vision 2030, which requires around $1 trillion in investment over several years.
The report stated that part of this investment will also come from the government and the Public Investment Fund (PIF).
S&P Global Ratings said it believes that investments in Vision 2030 will inevitably increase leverage in Saudi Arabia’s private sector and the broader economy. However, it noted that the pace and extent of the increase in leverage in the corporate sector remain uncertain.
The agency said lending growth in Saudi Arabia’s banking system over the past five years was primarily due to an increase in mortgages. It then attributed this reason to the lack of a material increase in publicly listed corporate debt.
Moreover, S&P said companies in Saudi Arabia have been cautious about committing to large capital expenditures due to high-interest rates.
And even though listed companies’ leverage remains manageable, S&P expected that debt is building up in the private sector among unlisted entities, and therefore would support strong corporate growth.
The agency added that the structure of corporate balance sheet debt is changing, with a growing contribution from international debt versus domestic debt.
The S&P report also showed that higher private-sector leverage in Saudi Arabia’s banking landscape could create imbalances and pose asset-quality problems in the future. However, the banking system remains in good shape, with strong overall asset-quality indicators and capitalization, it affirmed.
The report also expected banks’ good profitability and conservative dividend payouts to continue supporting their capitalization over the next one-to-two years.
In addition to raising debt, the agency said Saudi Arabia’s companies have been active in raising new equity through initial public offerings (IPOs) in 2022 and 2023.
It noted that until May 2, 13 private companies have announced potential listings on Saudi Arabia’s main market and parallel market (Nomu). In addition to strong internal cash flow generation, this will help contain the buildup of corporate debt.
Meanwhile, debt buildup in the Saudi economy will remain in focus, S&P said. It expected its growth to be gradual and concentrated with companies in the PIF portfolio.
The rating agency also noted that Saudi Arabia still faces some risks including higher-for-longer interest rates and geopolitical risks, which could mean higher spreads for the weakest companies.

 


Riyadh Witnesses Launch of 1st European Chamber of Commerce

The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
TT

Riyadh Witnesses Launch of 1st European Chamber of Commerce

The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA
The European Chamber of Commerce in Saudi Arabia, led by Lorcan Tyrrell, will officially launch in Riyadh on Wednesday. SPA

The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) will officially launch in Riyadh on Wednesday. The chamber aims to strengthen economic, investment, and trade ties between the European Union, Saudi Arabia, and the Gulf states.

Before the launch, ECCKSA Chairman Lorcan Tyrrell highlighted that the Chamber’s formation followed over a year of collaborative efforts with EU and Saudi officials.

Q: When will the work of the European-Saudi Chamber of Commerce officially begin? Is there a specific commercial, investment or economic project with which the Chamber’s work will be launched?
Work has been ongoing by the EU Delegation and Founding Group Members for over 12 months. Following a very proactive dialogue with European and Saudi Government Officials, we are now in a position to open our organization to Members. Our Founding Group Members have been volunteering in their capacity to see us reach this part of the journey and are now transitioned to the First Board of the First European Chamber of Commerce in GCC.
There are emerging priorities that we may focus on in our sectoral committees. However, there is a unique opportunity for our new members to shape the voice and priorities of the Chamber of Commerce with Governements and Policy makers in both KSA and Europe. Two areas of focus just at the moment include the Green Transition Programme to help utilize best sustainability processes and green energy solutions as well as Women in Leadership which are active programmes within the EU-GCC dialogue.
Q: What facilities will the chamber provide to the business sector on both sides?
We will focus on three key priorities. Our primary focus will be on business positioning. Highlighting the key priorities for policy makers to focus on through position papers for example. This will be supported through advocacy and working group engagement with Ministries and Enterprise Agencies. Our secondary focus shall be around facilitating members to join the Chamber and to provide events for networking and publications to support the members businesses. All of this will then be supported through our tertiary priority which is to link back to EU and KSA to remove barriers to accessing the market. This may for example include helpdesks to help companies navigate the right channels to doing business in Saudi.
It should be highlighted as part of these priorities that we will also be opening bi-lateral communications into Europe for Saudi businesses to share their knowledge in services and goods and grow the trade channel in both directions.
Q: What are the most prominent challenges that the Chamber will work to find solutions for? 
Facilitate dialogue between the stakeholders that have enabled this initiative and the Members / Businesses that will join.
Seek opportunities to increase localization and for Saudi businesses to prosper through European Businesses being present in KSA.
Remove existing obstacles to trade in areas that our members currently experience and share good innovative solutions that businesses have found to be positive.
Q: Will the Chamber have any role in launching a free trade zone in the region?
This is not something that we are currently involved in. We will meet the various Ministries of Government to ensure we listen and prioritize key initiatives. This will be reflected through our Members and the European Government.
Q: What are your expectations for an increase in the growth rate of trade and investment during the year 2024?
We expect that a European Chamber of Commerce will focus on the sectoral opportunities within KSA. So for example if we look at Energy we will focus on how we can join the Energy and Utilities sector together with a unified voice and increase opportunities to prosper and trade more. This is equally the case on how KSA is perhaps in a position to export energy solutions to Europe that are not part of the oil industry such as green hydrogen fuels.