Big business comes to Saudi Arabia
Big business comes to Saudi Arabia
Dozens of the biggest names in global business have arrived in the Kingdom for the Future Investment Initiative (FII), which is being hosted by the Public Investment Fund (PIF) — the body that is spearheading a slew of economic reforms.
The FII is being held under the patronage of King Salman while Crown Prince Mohammed bin Salman is set to welcome some 2,500 delegates today.
IMF chief Christine Lagarde and BlackRock boss Larry Fink are among those attending the event, which is being called the “Saudi Davos” — a reference to the Swiss town that hosts the main World Economic Forum meeting each year.
“We see FII as a unique opportunity for the global community to bring together aspirational thinking around the future of the world economy,” said Pedro Oliveira, Oliver Wyman’s regional managing partner.
Saudi Arabia is undergoing unprecedented economic and social reforms as the Kingdom seeks to reduce reliance on oil and gas revenues while creating thousands of new jobs for a youthful population.
The FII will see “internationally-renowned business leaders and influencers discuss ... how the challenges of the future can be addressed,” said PIF Managing Director Yasir Othman Al-Rumayyan.
Bankers and fund managers in the audience will be especially interested to hear about the planned initial public offering (IPO) of Saudi Aramco, the national oil company.
Aramco CEO Amin Nasser will be among the homegrown business heavyweights at the conference.
On Monday, he quashed market rumors about possible delays to the planned IPO, which could raise $100 billion from investors.
“We have always said that we will be listing in 2018, and to be more specific, in the second half of 2018,” he told CNBC in an interview.
He added: “The IPO is on track. The listing venue will be discussed and shared in due course.”
The Aramco IPO is being seen as a touchstone for wider financial reforms that is drawing interest from the world’s biggest money managers — many of them attending the three-day event in Riyadh.
It has spurred interest from several international banks and rating agencies have set up operations in the kingdom in anticipation of a flood of new deals.
One of them is S&P Global Ratings, a credit ratings agency that assesses the creditworthiness of companies and countries seeking to raise debt.
S&P said on Monday it has opened a branch in Riyadh, making it the first international credit rating agency to be fully licensed to operate in Saudi Arabia.
Companies in Saudi Arabia have typically used bank loans to meet their financing needs, but that is expected to change.
“As Saudi Arabia’s capital markets evolve to match the size of the country’s economy, there is a prime potential for greater debt issuance,” said Meshari Al-Khaled, the newly appointed S&P office head in Riyadh.
Disappointed fans hail improved performance by Saudi Green Falcons but defeat ends World Cup dream
- A fan named Yousif, who watched the match at the General Sports Authority viewing tent, was happy that the game at least was close this time.
- Saudi Arabia will face off against Egypt, who also lost their opening two group A games against Uruguay and Russia, on June 25.
JEDDAH: Saudi Arabia’s World Cup dreams were shattered after Uruguay beat the Green Falcons 1-0 in the second of the three group-stage matches. Most Saudi fans in Jeddah were much happier with the team’s performance in game two, following the resounding 5-0 defeat by host nation Russia in the opening match on June 14, but still bitterly disappointed by the loss, which means they cannot qualify for the knockout stages.
Yousif, who watched the match at the General Sports Authority viewing tent, was happy that the game at least was close this time. “Although we lost, the performance was much better than the first game with Russia. I hope we win our next match,” he said.
Nasrah, who watched the game with her two sons, said: “I was really disappointed because we played good today and nothing less than a win should have been acceptable. I am also disappointed to see the looks on my boys faces when the game ended as they were hoping for a win.”
Khalid Al-Raghbi said at least it had been a good match to watch. “We played a bit better today,” he added. “I wish we would have won but at least we performed better than our last match against Russia.”
Before the game, Ibrahim Al-Turki had been optimistic about Saudi Arabia’s chances. “We didn’t expect today’s result. I was thinking that Saudi would win by two goals, and Uruguay would score one,” he said.
The result was especially disappointing given the close result and the number of chances the Saudis had to score, said Badr, who added: “I don’t know what to tell you because we are deeply disappointed. At least if we lost with a big defeat I would say we deserved it. We had the potential but we could not score.”
Shadi Al-Ghamdi said he wished the national team’s much improved performance in their second game had been more evident in their first. “I am very proud of the players, I thought they played very well. I just wish they had played like this against Russia," he said.
Safah was less complimentary and said that the Saudi players had let their fans down, adding: “They seemed scared whenever they attempted to score any goals.”
Saudi Arabia will face off against Egypt, who also lost their opening two group A games against Uruguay and Russia, on June 25. It will be the final game in the competition for both sides, with only pride to play for, as they battle it out to see who will finish third in the group and who will be left in bottom spot.