FII2018: Company chiefs urged to embrace technological revolution

Top CEOs at the opening ceremony of the Future Investment Initiative conference in Riyadh. (AFP)
Updated 24 October 2018
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FII2018: Company chiefs urged to embrace technological revolution

  • If companies do not transform with clear strategies, they will be left behind, just like many companies that have failed

RIYADH: Company chief executives must embrace the technological revolution, delegates to the Future Investment Initiative conference were told.

Leaders need to come out of their traditional offices and engage with the community, said Yousef Al-Benyan, vice chairman and chief executive of Saudi Basic Industries Corp. (SABIC), the Saudi petrochemicals giant.

“I don’t look at it wholly from a regional point of view, but I look at it globally,” he said. “Transformation and the technology evolution are going to be very crucial. At the same time, it is going to create challenges for business.”

Companies should keep in mind that if they do not transform themselves with different platforms and clear strategies, they will be left behind, like many companies that had failed, Al-Benyan said.

“I’m not looking at incremental transformation but it has to be a complete transformation otherwise the companies will not be able to truly satisfy their shareholders.”

Al-Benayan also discussed the digital transformation that is changing the petrochemical industry, and how it will drive future growth.

The petrochemical industry is important for the growth of prosperity, Al-Benayan said. “The petrochemical industry is now everywhere in every individual’s life,” he said. 

SABIC is competitive, he said. “We have more than 21 centers globally, supported by more than 2,000 scientists and researchers to make sure that we have up-to- speed positions in our competitive environment.”  

Al-Benayan expressed concern about the future of job creation. The speed of technological innovation was greater than the speed of the transformation of Saudi Arabia’s education system, he said, which would create challenges for Saudi youth.


Careem looks to raise up to $200 million in China

Updated 20 November 2018
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Careem looks to raise up to $200 million in China

  • Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalized
  • Careem said in October it had secured $200 million in a new funding round from existing investors

HONG KONG: Careem, Uber’s main Middle East rival, is looking at raising between $100 million and $200 million from Chinese investors, a source with direct knowledge of the matter told Reuters.
Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalized, the source said, adding there was a lack of familiarity and interest among Chinese investors in Middle Eastern start-ups.
Beijing-based CICC and Careem both declined to comment.
Reuters reported on Monday that CICC and New York-based investment bank Jefferies were both advising Careem on potential investment options and capital raising, including a possible Middle East M&A deal with Uber.
Careem, which counts German car maker Daimler and China’s largest ride-hailing company DiDi Chuxing among its other backers, competes head-to-head with Uber in most of the major cities in the Middle East.
Careem said in October it had secured $200 million in a new funding round from existing investors, and that it expected to raise more to finance expansion plans.
That investment, combined with previous fund raising and company growth into new markets and segments, gave Careem an estimated valuation of more than $2 billion.
Reuters reported in March that Careem was in early talks to raise as much as $500 million.