DOING BUSINESS
Saudi Arabia's economy offers significant opportunities for foreign investors.
The Western Region has maintained strong economic performance in recent years despite economic headwinds. Why do you think this is?
Hassan Dahlan I do not see or feel any differences in the economies of the Saudi regions; indeed, they have all maintained strong economic performance despite the negative effect of declining oil prizes in the world market, comparing to years ago when the monthly oil prices in the world market were going up. Government spending has amounted to 39% of GDP over the past three years, and budget deficits have averaged 4.6%. In general, Saudi Arabia's regulatory efficiency and open-market policies have lagged behind those of other emerging economies. To a backdrop of low oil prices over the past two years, in April 2016 the country unveiled a notable policy shift in the form of a significant economic reform plan, Saudi Vision 2030. The plan is looking to increase foreign investment in all Saudi regions and enhance the overall competitiveness of the Saudi economy.
In what ways has the Asharqia Chamber helped attract trade and investment to the Eastern Province?
AbdulRahman A. Al-Wabel The Eastern Province Chamber of Commerce and Industry (Asharqia Chamber) has been playing a key role in attracting trade and investment to the Eastern Province. Actually, our Chamber's main activities are concentrated on touting the region's enormous trade and investment opportunities to the local and foreign investors. For instance, over the past year, the Chamber hosted 11 foreign trade delegations and organized a number of catalogue exhibitions of different countries aimed at establishing trade and business contacts between the Saudi companies and their overseas counterparts. In addition, the Chamber has also been engaged in various social and voluntary activities.
How has the Jeddah Chamber worked to improve foreign and domestic investment in Jeddah this year?
HD Saudi Arabia's economic challenges may offer significant opportunities for foreign investors, as improving the country's investment climate remains an integral part of the government's new efforts to liberalize the country's trade and investment regime and diversify an economy overly dependent on oil exports. The government took many positive steps to encourage foreign investment, including opening the Saudi stock market to qualified foreign investors; developing plans to privatize the country's civil aviation, technology, and healthcare sectors; removing the barrier to full foreign ownership of retail and wholesale businesses within the country; and publishing a new companies law that lowers some barriers to starting a new business. It continues to encourage investment across nearly all economic sectors, prioritizing investments in industry, manufacturing, transportation, education, health, communications technology, life sciences, and energy; as well as in four economic cities that are at various stages of development.
What role do you see this region playing under Vision 2030?
AAAW As the hub of the Kingdom's industrial activities, I believe the Eastern Province has taken the lead in supporting the most ambitious Vision 2030, which is mainly aimed at reducing the Saudi reliance on oil. In this economic transformation, the Eastern Province is the key player contributing significantly to the Kingdom's drive to diversify its income away from oil. With the robust growth of industries, the Eastern Province is now called "The Industrial Capital of the Gulf." Most of the Kingdom's manufacturing industries such as petrochemicals, chemicals, steel, cement, aluminum, and plastics are located in the region. These industries are largely based in the Dammam-I and II industrial estates and Jubail-I and II industrial cities. The Eastern Province is set to witness an industrial boom with a number of mega projects coming up. As you aware, the Custodian of the Two Holy Mosques King Salman Bin Abdulaziz recently inaugurated a host of basic infrastructure and development projects in Jubail and Ras Al-Khair industrial cities including the Sadara Chemical Company (Sadara) and the Saudi Aramco Total Refining and Petrochemical Co. (SATORP) in Jubail. The two projects are among the largest facilities in the refining and petrochemical industries that support the objectives of the Saudi Vision 2030. These two world-class projects are the successful partnerships between Saudi Aramco and two global companies — the Dow Chemical Company and Total—which are leaders in their respective areas of business.
DOING BUSINESS
TABLE OF CONTENTS
Column
YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister’s Office & Second Minister of Foreign Affairs and Trade, Brunei
TBY talks to YB Pehin Dato Lim Jock Seng, Minister at the Prime Minister's Office & Second Minister of Foreign Affairs and Trade, Brunei, on the sector.
read articleReview
A Crude Awakening
The Kingdom has made renewables a critical aspect of its ambitious Vision 2030 effort to diversify its economy and wean itself from a strictly carbon-based diet, not to mention empower local businesses and individuals to take up the mantle and lead the energy sector into the next generation.
read articleInterview
Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) , Saudi Aramco,
TBY talks to Abdulaziz AbdulKarim, Vice President of Procurement & Supply Chain Management (PSCM) at Saudi Aramco, on the IKTVA program, supporting local content, and looking back over a successful year.
read articleInterview
Ayman Abdullah Alfallaj, CEO, Thiqah
TBY talks to Ayman Abdullah Alfallaj, CEO of Thiqah, on how the private sector can keep pace with the speed of public reforms, delivering a strong and lasting value proposition, and integrating the fruits of privatization into the public sector.
read articleFocus: Technology Investments
Investment Calling
A technological revolution is underway in the Kingdom. Already one of the most tech-savvy nations in the Middle East, the Saudi market has long sought a thriving domestic technology and innovation scene. And with Vision 2030, it is on course to deliver just that.
read articleReview
A Hejaz Unhindered
An ambitious series of road and rail projects from the Jordanian border down to the Indian Ocean are slated to open in part before the end of 2017. They bring the Kingdom that much nearer to its goal of greater non-carbon-based economic integration with the world.
read articleInterview
Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and Minister, Civil Service
TBY talks to Sulaiman bin Abdullah Al-Hamdan, Former Minister of Transport and current Minister of Civil Service, on an attractive legislative framework for investment, railway linkages, and port developments.
read articleInterview
Rumaih M. Al-Rumaih, President, Public Transport Authority (PTA
TBY talks to Rumaih M. Al-Rumaih, President of Public Transport Authority (PTA) & Acting President of Saudi Railway Organization, on teaming up with commercially committed partners, making sure the Kingdom's land and sea bridges are of the first order, and providing employment for all the Kingdom's inhabitants.
read articleInterview
Nabeel M. Al-Amudi, President, Saudi Ports Authority, and Minister of Transport
TBY talks to Nabeel M. Al-Amudi, Minister of Transport, and President of Saudi Ports Authority, on optimally restricting concession agreements, resolving bottlenecks in the logistics chain, and privatizing as rapidly as possible.
read articleInterview
Khaled Bin Abdullah Al Hogail, CEO & Managing Director , Saudi Public Transport Company (SAPTCO)
TBY talks to Khaled Bin Abdullah Al Hogail, CEO & Managing Director of the Saudi Public Transport Company (SAPTCO), on the importance of strong and rational regulations, knowledge transfers, and unifying public and private transportation networks.
read articleInterview
Imad El-Zein, CEO, Auto World-Sixt Saudi Arabia
TBY talks to Imad El-Zein, CEO of Auto World-Sixt Saudi Arabia, on growing market share in challenging circumstances, partnering with world-class players to boost its local presence, and combining better services with lower costs.
read articleInterview
Saleh H. Al-Ghamdi, Acting CEO, Saudi Air Navigation Services Company (SANS)
TBY talks to Saleh H. Al-Ghamdi, Acting CEO of Saudi Air Navigation Services Company (SANS), on maximizing safe and effective services, effectively increasing the rate of Saudization, and easing the pathway of women into the workforce.
read articleInterview
Khalil Kutubkhanah, CEO, Jeddah Development and Urban Regeneration Company (JDURC)
TBY talks to Ibrahim Khalil Kutubkhanah, CEO of Jeddah Development and Urban Regeneration Company (JDURC), on Jeddah's unplanned settlements, the company's redevelopment projects, and its partnership model with the private sector.
read articleInterview
Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister, Planning and Health & Director of the Vision Realization Office
TBY talks to Dr. Khalid Bin Mohammed Al Shaibani, Deputy Minister for Planning and Health & Director of the Vision Realization Office, on reforms within the Ministry of Health, the corporatization of healthcare provision, and transformations in care delivery.
read articleInterview
Mohanad A. Dahlan, CEO, University of Business and Technology (UBT) Company
TBY talks to Mohanad A. Dahlan, CEO of University of Business and Technology (UBT) Company, on the evolution of the company, education investments, and upcoming sectors that will need support from the sector.
read articleFocus: Universities
Broad and Deep
As part of the continuing decentralization of higher education in Saudi Arabia, individual universities are pursuing their own paths to grow their faculties, engage with various international stakeholders, and ultimately move toward a more privatized future.
read articleInterview
Rafique Izhiman, Area General Manager KSA Jeddah, Yanbu Hotels
TBY talks to Rafique Izhiman, Area General Manager KSA Jeddah/Yanbu Hotels & General Manager, Intercontinental Hotel Group (IHG), Jeddah, on the role the firm plays in the market, expanding its footprint in the country, and expectations for 2017.
read article