Sabic chief sees Brexit as start of new era for UK-KSA trade

Ibrahim Al-Omar, the governor of the Saudi Arabian General Investment Authority and Sabic CEO Yousef Al-Benyan address business chiefs in London on Thursday. (AN Photo)
Updated 09 March 2018
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Sabic chief sees Brexit as start of new era for UK-KSA trade

LONDON: Saudi Arabia will firmly support the UK as it embarks on Brexit, the chief of chemicals giant Sabic said on Thursday.
Speaking at a gathering of CEO’s from both countries in London, Sabic CEO Yousef Al-Benyan said: “The UK is going through a journey with Brexit. As a Kingdom that is also going through a journey, we understand.”
He added: “We see this as chance to take advantage of Brexit – this is a new chapter and is the time to make sure our interests in the region are included in the new (UK) vision.”
The SABIC CEO said that changes in Saudi Arabia were “coming in a speedy manner like we have never seen” and that SMEs were going to play a major role in bringing the Kingdom’s Vision 2030 to fruition.
“SMEs will have an ability to play a major role, especially around job creation for males and females,” Al-Benyan said. “In order for the SMEs and companies to be sustainable they have to grow globally and invest in technology advances to stay ahead. This is why partnerships with the UK and other partners is going to be a very important catalyst for success.”
Speaking on the same panel, Ibrahim Al-Omar, the governor of the Saudi Arabian General Investment Authority (SAGIA), agreed that the development of two-way trade was imperative for the sustainability of the Kingdom’s 2030 vision.
He said: “We look to the UK particularly for health, education and fintech. The UK has a good supply of these skills and we have a big demand.
The SAGIA governor added: “Investors told us they were concerned about transparency, regulation and then customs. So we identified 297 reforms and we have already completed 45 percent of them, including issuing the new companies law and creating the commercial arbitration center. Today, you will be granted a business visa within 24 hours of application.”
Al-Benyan added: “In Saudi Arabia, this is the first time we have a clear vision of where we are going – but we need to be realistic, there are so many challenges to implementation.”
Speaking at the event, former UK secretary of state Peter Mandelson agreed the proof of the vision’s success lies in its execution.
He said: “The Saudi vision is clear and ambitious and, if it delivers, it will be a point of transformation.”


UK households grow less confident about their finances in October — IHS Markit

Updated 22 October 2018
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UK households grow less confident about their finances in October — IHS Markit

  • 23 percent of households expect their finances to weaken over the next year
  • The survey asked 1,500 respondents

LONDON: British households’ confidence in their finances worsened this month as their earnings from employment rose at the weakest rate since February, adding to growing signs of caution among consumers, a survey showed on Monday.
The IHS Markit Household Finance Index, watched by the Bank of England as a gauge of consumers’ financial health, cooled to a three-month low of 45.1 from 45.7 in September, though the reading is still one of the highest since the survey’s 2009 launch.
The survey’s findings may raise eyebrows among BoE officials who expect inflation pressure to pick up over the next couple of years, driven by a gradual pick-up in wage growth.
Data firm IHS Markit said the British public’s inflation expectations for the next 12 month fell this month to the lowest in two years, while optimism about house prices was the lowest since July 2016 — just after the Brexit vote.
“UK households cast their most downbeat assessment of current finances in three months in October as weaker earnings growth from employment limited cash availability,” IHS Markit economist Joe Hayes said.
“Looking ahead, households were more concerned about their future budgets.”
Other gauges of financial sentiment among households have also soured recently.
Expectations for personal finances over the next 12 months struck a five-month low in September, according to a closely-watched report from pollsters GfK.
And the latest Thomson Reuters/Ipsos Primary Consumer Sentiment Index showed 23 percent of households expect their finances to weaken over the next year — the biggest proportion since March 2013.
IHS Markit said households’ expectations for Bank of England interest rates were barely changed compared from a month ago, with half of households expecting another interest rate hike within the next six months.
The survey of 1,500 people was conducted between Oct. 11 and Oct. 16.