https://arab.news/59eph
LONDON: UK investors have been urged to take advantage of Saudi Arabia’s burgeoning mining industry and economic reforms at the BMG Economic Forum 2023, held on Wednesday at the headquarters of the London Stock Exchange and attended by Arab News.
A panel of business leaders from Saudi Arabia made it clear that the Kingdom is not only “open for business,” but that reforms to the regulatory and legal systems mean it is a safe place for investment.
The forum was held less than a month after Saudi Commerce Minister Majid Al-Qasabi met with British ministers and leaders of major companies in the UK to boost trade ties between the two countries.
Speaking during a panel discussion, Amr Khashoggi, chairman and CEO of Amkest Group, highlighted the Saudi mining sector as a key area of opportunity for investors, adding: “We have more than $3 trillion worth of mining wealth under the ground.”
Amr Zedan, chairman of the Zedan Group, praised the “laser-focus” of the Kingdom’s leadership in developing the economy, which he said has turned Saudi Arabia into “the land of opportunity.”
He added: “Saudi Arabia presents the opportunity of what we used to hear in the US, where if you wanted to pursue a dream and reap the fruits and be successful that’s very much obtainable.”
Zedan said: “What you’re having right now is an attempt to exploit every single advantage within the Kingdom of Saudi Arabia — be it location, be it pilgrimage, be it the number of youth we have in the Kingdom of Saudi Arabia — which possesses an opportunity.”
He was keen to highlight the “proper regulation” present in the Kingdom when it comes to the business sector, adding that “proper rules and governance” have helped create “a market that’s poised for growth in every way.”
He said: “Gone are the days of the stereotype that you need to adhere to certain structures if you’re doing business.
“It’s open literally for anybody and everybody to have a successful operation in the Kingdom and go from Saudi to the world.”
UK lawmaker Lord Udny-Lister described Saudi Arabia as “the most exciting country in the world.”
He said he is impressed by “the enthusiasm and energy of individual Saudis,” and their belief that the Kingdom “can do almost anything.”
He added: “I’d rather be employing there than here because you get a jolly sight better group of people coming to work for you. I’m an unashamed fan and advocate.”
RIYADH: The Saudi Ministry of Industry and Mineral Resources has begun evaluating the second tranche of factories as part of its “Future Factories Program” under the indicators of the Smart Industry Readiness Index.
The initiative seeks to establish a strong technological ecosystem and transform the manufacturing sector in alignment with modern practices and principles and is a key tenet of the Vision 2030 initiative to diversify the Kingdom’s economy.
With an emphasis on improving the Saudi industrial sector, the program will evaluate 260 licensed factories operating at different levels of technical development. Each factory will hold an authorized capital of over SR200 million ($53.3 million).
The ministry stated that this stage will concentrate on verifying the self-evaluation results of factories that have achieved a rate of 2.14 on the SIRI. The factories will be divided into two groups: advanced factories, which have surpassed a score of 2 on the audited evaluation of SIRI standards, and factories that require modern manufacturing practices.
According to the ministry, the audited SIRI evaluation can contribute to raising the leadership and factory teams’ awareness of the importance of adapting modern manufacturing practices.
The ministry also emphasized that the move can contribute to setting priorities for the transformation of the factories and developing a plan to achieve the second SIRI level or higher. Such advancements can lead to increased returns, profits, and cost reduction.
Meanwhile, the ministry indicated that factories that did not surpass the specified stage in the audited assessment would be eligible to receive incentives. These aim to support the factories, enabling them to formulate plans to improve performance in the audited assessment and adopt Fourth Industrial Revolution technologies.
The ministry stated that the program encompasses two main streams. The first stream will focus on designing and constructing new factories that adhere to high manufacturing and production efficiency standards. The second stream will target existing factories to transform them into facilities that embrace exceptional operational standards and leverage advanced technologies.
RIYADH: There is no room for negotiations with Iran over the Al-Durra gas field until it demarcates its own maritime borders in accordance with international laws, according to the Kuwait oil minister.
Saad Al-Barrak made the comments as tensions over the resource-rich “Divided Area” increased following Tehran’s announcement of plans to commence drilling in the region.
Iran’s claims over access to the gas field are not based on a “clear demarcation” of the maritime borders, according to Al-Barrak.
“Until this moment, this is an exclusive right of Kuwait and Saudi Arabia in the Al-Durra field, and whoever has a claim must start demarcating the borders,” the minister said in an interview with Al-Ekhbraiya.
He added: “And if it has a right, it will take it according to the rules of international law.”
The minister insisted Kuwait and Saudi Arabia are “one team” when it comes to the gas field, which will be developed “for the benefit of both countries.”
Last week, Saudi Minister of Foreign Affairs Faisal bin Farhan reaffirmed the joint ownership, calling on Iran to engage in negotiations to demarcate the eastern border of the area.
In a statement released by the Saudi Press Agency on Tuesday, a Foreign Ministry source emphasized the natural resources in the “Divided Area” are solely owned by Saudi Arabia and Kuwait.
“We renew our previous calls for Iran to start negotiations to demarcate the eastern border of the submerged divided area between the Kingdom and Kuwait as one negotiating party opposite the Iranian side,” the ministry stated.
The Al-Durra gas field is a common submerged area between Saudi Arabia and Kuwait located in the Arabian Gulf.
It is situated within the Al-Hasa governorate, which is a part of the Eastern province of Saudi Arabia.
The discovery of this oil field dates back to the 1960s, which coincided with the commencement of the demarcation process for the maritime borders between Saudi Arabia and Kuwait.
The dispute over its ownership and exploitation rights arises from differing interpretations of maritime boundaries and conflicting claims by Tehran.
In 2001, Iran began granting contracts for its exploration, which prompted Saudi Arabia and Kuwait to finalize the demarcation of their maritime borders, which included the Al-Durra oil field.
Despite objections from Iran, Saudi Arabia and Kuwait signed an agreement in 2022 to jointly develop and explore the field.
RIYADH: In a bid to speed up Saudi Arabia’s aim to integrate supply chains, the Ministry of Industry and Mineral Resources has launched an industrial platform to help manufacturers procure petrochemical raw materials efficiently.
According to the ministry, this platform falls under the umbrella of the Petrochemical Supply Chains Integration Committee, which intends to boost the production capacity of existing manufacturing plants and increase investment in the sector.
This move will improve the supply chain integration of the petrochemical and manufacturing industries.
The ministry stated that the service aims to promote and strengthen the sector in the Kingdom by matching the availability of petrochemical materials with the needs of the manufacturing industry.
“The service aims to ensure that the manufacturing industries benefit from the competitive advantage directed to the petrochemical sector and to provide the integration of the petrochemical sector’s supply chains,” said Jarrah Al-Jarrah, the ministry’s official spokesman.
He added: “In addition to automating the mechanism for requesting support in procuring petrochemical raw materials, it addresses challenges faced by relevant authorities.”
The Kingdom’s plans to become a hub for global manufacturing, which would revolutionize its industrial base, are well underway as part of its Vision 2030 strategy, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef said during the World Economic Forum in Davos in January this year.
“With our great location, access to different markets (and natural resources), as well as our most important asset — our people and our talent — we can be a serious player in attracting investments in manufacturing,” he explained at the event.
RIYADH: Saudi Arabia’s finance companies have seen their collective portfolios surge 10.8 percent to reach SR75.45 billion ($20 billion), according to the latest figures released by the Saudi Central Bank.
Growth occurred across most indicators at varying rates in 2022 — the period covered by the report — with the total assets of the sector rising by 6.5 percent to SR57.02 billion.
Net income also rose by 3.3 percent in 2022, reaching SR1.86 billion, according to the annual report by the bank, also known as SAMA.
As for the firms’ paid-up share capital, it amounted to SR14.64 billion by the end of last year, showing a slight rise of 0.6 percent.
Finance portfolios comprise a wide range of investments including stocks, bonds, commodities, cash, and cash equivalents.
According to SAMA, the retail sector made up the largest portion of loan portfolios at 76 percent, followed by micro, small and medium enterprises at 21 percent, and corporate at 3 percent.
In May, Saudi Arabia’s business sector also saw a boom across most segments, showed the latest data.
In turn, banks extended loans, overdrafts and lines of credit to companies seeking to invest in their projects, purchase capital goods and expand operations.
Out of the 16 business segments of the National Classification of Economic Activities, 15 registered an annual increase in bank credit for May. The only segment that witnessed a dip was agriculture, forestry and fishing, which fell by 8.06 percent.
Bank credit to professional, scientific and technical activities in Saudi Arabia increased 49.49 percent to SR5.01 billion in May, from SR3.35 billion in the same month last year, reported SAMA.
The central banks’ May monthly report revealed that the segment also recorded a 21 percent increase in bank credit compared to SR4.11 billion in April.
It encompasses a wide range of professional services, including legal and accounting, architectural and engineering, technical tests and analysis, and research and development in scientific fields.
The Kingdom has seen significant growth in the segment, with state-run institutions such as the Research Development and Innovation Authority collaborating with the private sector to promote innovation and entrepreneurship.
The sector is also set to play a crucial role in the Kingdom’s Vision 2030 diversification strategy that aims to reduce dependence on oil revenues and develop a knowledge-based economy, with German research platform Statista projecting it to reach $8.5 billion in 2024.
RIYADH: Artificial intelligence, machine learning and video analysis will soon manage operations at the King Khalid International Airport thanks to a new collaboration between Riyadh Airports Co. and Master Works.
The two parties have signed a strategic partnership contract to implement the Turnaround Management System project at the airport, according to a statement.
The new system will improve the overall operational efficiency at the airport and raise the safety level on the airfield. In addition, it will enhance aircraft turnaround processes by digitalizing and monitoring all ground events.
This move bolsters RAC’s continuous attempts to accelerate the digital transformation of its operations further. It also falls in line with the National Aviation Strategies as well as the Saudi Vision 2030.
“This strategic contract with Master Works represents the digital transformation that Saudi Arabia is witnessing in general and the remarkable development achieved in the aviation sector in particular,” said RAC CEO Musad Aldaood.
He added: “The operational excellence of the company at different stages and levels is led by the adoption of cutting-edge technologies and digital solutions to raise the levels of automation.”
RAC stated that advanced technologies, including machine learning and video analysis, will be enabled using Baseer AI, a forward-thinking computer vision platform to measure performance indicators and monitor different ground operations.
Master Works Chairman Othman Al-Hokail emphasized the importance of this cooperation.
“The partnership between Riyadh Airports and Master Works represents a concrete demonstration of the significant benefits that can be realized through the utilization of cutting-edge artificial intelligence and video analysis to enhance the travelers’ experience with the best plans, solutions and programs,” Al-Hokail said.
He added: “At Master Works, we are committed to providing our clients with the latest artificial intelligence technologies that enable them to drive digital transformation and improve operational efficiency with exceptional technical and innovative programs.”
Established in 2015, RAC is now managing and operating King Khalid International Airport in the Saudi capital and is working on upgrading the infrastructure and expanding with new services and facilities.