RIYADH, 3 February 2003 — A Jeddah-based financial consulting firm has concluded deals worth around $700 million from Saudi investors within one year.
“Saudi Arabia’s economic reforms and the aftermath of Sept. 11 events have stimulated investors’ interest in the region,” Basil M. Al-Ghalayini, president of BMG Financial Advisors, told Arab News.
Basil mentioned Dip‘N’Crunch Arabia, a Saudi-Lebanese venture, that is expected to make a dent in the fast food market dominated by the American fast food chain. It is to promote a new concept whereby customers receive a packet with separate containers for items like chips, dips etc.
Asked about the $700 million worth of deals involving his clients, the BMG president said they include projects ranging from the production of water and power to insurance, fast food, fresh juice and the dairy industry.
He said Arab investors prefer the Kingdom for its strategic location, reliance on high technology, and an efficient distribution network covering the Gulf states.
“In the banking sector, we are now negotiating the sale of a small Lebanese bank. It has caught the interest of a Saudi family who want to convert it into a private bank to cater for Gulf investors in Lebanon,” Basil said.
He pointed out that the bank, capitalized at $25 million, would be re-branded into a Swiss-type bank for serving its clients.
“Our expertise has also been used in setting up an insurance joint venture operation in the Kingdom between a Saudi conglomerate and a Lebanese insurance company,” Basil said.
“Our assistance has also been sought by a leading Lebanese dairy which is set to sell a strategic stake to a major Saudi dairy company,” he added.
The repatriation of Gulf funds from the US has triggered widespread interest in Lebanon and Syria, which are targeting Saudis and other Gulf investors for tourism projects in those countries.
One of the major recommendations of the recent Saudi-Lebanese investment conference was a call to the business community in the Arab world to identify investment opportunities, especially in the real estate, food, banking and tourism sectors, he added.
