WEF: Inclusion, societal resilience should be at heart of global economic growth agenda

This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
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This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
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This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
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This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
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This year’s WEF agenda shed light on cities as a key driver for global growth. (WEF/File)
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Updated 04 May 2023
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WEF: Inclusion, societal resilience should be at heart of global economic growth agenda

WEF: Inclusion, societal resilience should be at heart of global economic growth agenda
  • Desirable growth “builds on people and ideas,” Saudi Economy Minister tells summit

GENEVA: Experts at the World Economic Forum on Wednesday agreed that inclusion, sustainability and societal resilience should be at the forefront of global economic growth efforts in light of changes in the economic landscape, including the advancement of artificial intelligence, the green transition and demographic changes.

During the second day of the “Growth Summit: Jobs and Opportunities for All” in Geneva, Switzerland, economists, ministers and policymakers called for better integration of urgent priorities such as reducing inequality, addressing climate change and managing the disruptive power of new technologies.

Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim said that desirable growth “builds on people and ideas,” adding that “it needs to be an inclusive, sustainable growth.”

This was especially important, said Alibrahim, when taking into account the intersection of economic opportunity, social responsibility and social development globally, “especially as demographic profiles are changing.”

“At the intersection of these three things, we have what we call inclusive growth,” he said, highlighting that “it would be a shame and a waste” if, at the end of this disruptive period, “we do not crack the code on inclusive growth.”

Experts at the summit did not reach a consensus on whether there would be a recession in 2023. The Chief Economists Outlook, launched during the event, showed that 45 percent of the participants expected a recession while 45 percent believed it would avoidable.

“We will not have a recession globally,” said Christian Keller, head of economics research at Barclays Bank, despite suggesting that the US was going into “a shallow recession” while China, which contributed “20-30 percent to global growth every year,” was coming out of a prolonged lockdown.

China, however, had experienced “a very dramatic demographic change,” arguing that “labor force growth has been a driver in many economies” but not only has it been slowing, labor growth had been “turning negative.”

Keller concluded that economic growth and productivity, rather than population and growth were intertwined.

Learning and education experts at the summit pointed out that “49 percent of people work in jobs unrelated to their formal education,” identifying ten skill priorities for the job market in 2027, including analytical and creative thinking, AI and big data, empathy and active listening, agility and flexibility, and curiosity and lifelong learning, among others.

Access to education has been a hindrance to lifelong learning for many, said Saudi Education Minister Yousef Al-Benyan.

“In order for you to allow everybody (to) get into it, there are requirements to engage with the entire ecosystem,” he said. “There are rapid technology advancements, and the education system is lagging behind.”

Al-Benyan said that, as per the Kingdom’s Vision 2030, the main pillars for lifelong learning were a vibrant society, a thriving economy and an ambitious nation, stressing the need for a policy that gave people incentive, and in which technology would play a major role.

“We cannot demand lifelong learning where the values and culture are not really there for it,” he said.

To address inequalities, Zubaida Bai, president and CEO of Grameen Foundation, underscored the need “to focus on the bottom of the pyramid, and we really need to lead with gender. We need to bring women and girls to the center of everything we do, and we need to bring men to the table, and we do not leave boys behind.”

Stressing the importance of developing resilient societies that can face economic shocks, she said: “Building resilience requires encouraging women and talking about their strengths,” adding that “investing in the power of these women is actually what’s going to help build a resilient economy.”

Significant financing for skill advancement is necessary to prepare the workforce for the future, experts at the summit agreed, discussing the benefits of harnessing generative AI to improve productivity, which brings about the need for upskilling and reskilling to reduce the skills gap.

“AI will not take your job — it is someone using AI who will take your job,” said Richard Baldwin, professor of international economics at the Graduate Institute of International and Development Studies in Geneva.

This year’s WEF agenda shed light on cities as a key driver for global growth. Experts discussed how creating jobs in well-serviced cities would result in less migration and mobility.

“In the dynamics of the pandemic, we see that cities are rapidly digitalizing,” said Erika Kraemer Mbula, economics professor at the University of Johannesburg.

“We have seen an acceleration of digitization in African cities, including e-commerce and digital payment solutions,” she said. “There is huge opportunity in targeting the base of the pyramid.”

Asked about the transformation brought about by the COVID-19 pandemic, Rashed Al-Blooshi, undersecretary of the Abu Dhabi Department of Economic Development, said that Abu Dhabi has been the world’s first city in fiber optics, which allows it to immediately transfer education, business and services to the digital sphere.

He tapped into why the UAE’s capital emirate has been an attractive investment destination, pointing out that rules and regulations were among the main reasons why business owners preferred Abu Dhabi.

“In the last two years, more than a hundred radical laws were introduced — rules (and) regulations — protecting the investors,” he said. “Investors come, they want capital. They have different channels of getting the capital.”

Al-Blooshi added that the infrastructure was also ideal for investment. “Today, Abu Dhabi in the Ease of Doing Business (Index) ranked number ninth.”

In addition, he said that life in Abu Dhabi was also part of what made the emirate attractive: “We have the best schools, the best environments, best buildings . . . it makes the life of the businessman with his family happier.”

More than 20 high-impact initiatives were introduced during this year’s WEF summit, targeting primarily education, reskilling and upskilling the labor force, and improving equity.

One of the initiatives was the Moroccan government’s first Jobs Accelerator, part of a network of more 30 country accelerators working with the World Economic Forum.

Jobs Accelerators aim to establish and enhance cooperation between public and private sectors to future-proof labor markets, create good-quality employment opportunities, and help people to upskill and reskill for the jobs of the future.


Saudi-Portuguese committee seeks to bolster economic ties

Saudi-Portuguese committee seeks to bolster economic ties
Updated 58 min 27 sec ago
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Saudi-Portuguese committee seeks to bolster economic ties

Saudi-Portuguese committee seeks to bolster economic ties

RIYADH: Economic relations between Saudi Arabia and Portugal are on track to further strengthen as a top-level delegation heads to Lisbon for a meeting to enhance cooperation between the two countries.

Saudi Minister of Economy and Planning Faisal Al-Ibrahim will lead the delegation at the sixth session of the Saudi-Portuguese Joint Committee which begins on Monday, the Saudi Press Agency reported.

The two-day meeting will review investment opportunities between the two countries and explore venues for further collaboration across different sectors.

Al-Ibrahim is scheduled to deliver both the opening and closing speeches at the meeting alongside Portuguese Minister of Economy and Maritime Affairs Antonio Costa Silva.

The Saudi minister is also expected to deliver the opening speech at the Saudi-Portuguese Investment Forum.

He will also hold several meetings with senior government officials in Portugal and sign agreements aimed at boosting economic cooperation.

Saudi delegation includes representatives of different ministries and top officials of various government agencies.

In August, Al-Ibrahim met in Riyadh with the Ambassador of Portugal to the Kingdom of Saudi Arabia, Nuno Mathias, SPA reported at the time. They both discussed ways to enhance cooperation.


Saudia rebranding first step toward new customer experience

Saudia rebranding first step toward new customer experience
Updated 01 October 2023
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Saudia rebranding first step toward new customer experience

Saudia rebranding first step toward new customer experience
  • Top official says it is more than a change in logo or colors

RIYADH: The unveiling of a new brand identity for Saudi Arabian Airlines is more than a change in its appearance, as according to a top official it is but a part of a huge transformation in the company’s approach in line with the ongoing digital transformation.

Khaled Tash, head of marketing at Saudia, told Arab News on Sunday the new look represented the airline’s commitment to digital advancement and an array of new services and products in the pipeline.

He said the rebranding signifies the company’s embrace of the developing tech industry, reflecting the Kingdom’s broader ambitions.

The official said: “This is not about changing our logo or changing our colors.” It is, he added, more about improving our services and introducing new products.

“We are very keen to accelerate the transition…the overall reaction from the market” has been overwhelming, Tash said.

Elaborating on how the update reinforces the airline’s digital transformation, Tash noted that Saudia stands out as one of the pioneering airlines in Europe, the Middle East, and Africa to integrate artificial intelligence into its customer experience.

“The Travel Companion is an AI-driven personal aide. When users access the Saudia app, it intuitively recognizes them without requiring manual data input and promptly aids with all travel-related queries,” elaborated Tash.

Highlighting its capabilities, he mentioned that users can ask Saudia’s travel companion bot for holiday recommendations, which will engage in an interactive dialogue to understand preferences before offering tailored suggestions.

Additionally, users can seamlessly book their flights directly within the chat interface when conversing with the travel companion, eliminating the need to navigate away from the conversation.

The AI-driven bot is slated for launch by the end of this year, coinciding with an enhanced version of the airline’s application.

“Digital transformation is not just a buzzword that we use, we aim to improve the customer experience using new innovations,” Tash stated.

He elaborated that, guided by that motto, the company has pinpointed 260 features and services for introduction or enhancement if they already exist.

The airline has also launched a VIP meet-and-greet service. Tash expects this addition to boost revenue from booking services by 10 percent.

In alignment with Arab culture, the airline has introduced an option for female passengers to request seating next to other female passengers on specific, long-duration flights.

Tash said the unprecedented growth in the Kingdom’s tourism sector is also proving to be fruitful for the airline and it is part of the ongoing transformation. He specifically mentioned the fact that Saudia is the first airline to begin operations to and from the Red Sea International Airport.

The marketing head also revealed that the airline has ambitious goals to more than triple its passenger count over the next seven years.

Clarifying the shift in Saudia’s vision, Tash mentioned that historically, the airline’s objective was to connect the Kingdom’s citizens to the world. However, the current goal emphasizes bringing the world to Saudi Arabia.


Closing bell: Saudi main index closes lower at 11,040  

Closing bell: Saudi main index closes lower at 11,040  
Updated 01 October 2023
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Closing bell: Saudi main index closes lower at 11,040  

Closing bell: Saudi main index closes lower at 11,040  

RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Sunday, slipping 15.79 points or 0.14 percent to finish at 11,040.17. The benchmark index saw a total trading turnover of SR4.08 billion ($1.08 billion) with 79 listed stocks advancing and 135 retreating. 

In contrast, the Kingdom’s parallel market Nomu inched up 8.33 points, or 0.04 percent, to close at 22,698.64, with 24 listed stocks advancing and 30 retreating. 

The MSCI Tadawul Index declined 0.55 points, or 0.04 percent, closing at 1,415.12. 

The best-performing stock of the day was Middle East Healthcare Co., with its share price surging 8.35 percent to SR59.70. Other top performers included Electrical Industries Co. and Development Works Food Co., with their share prices soaring 5.37 percent and 4.90 percent, respectively, to stand at SR2.16 and SR111.40. 

Development Works Food Co. and the Mediterranean and Gulf Insurance and Reinsurance Co. were also among the top performers of the day. 

The worst performer was Raydan Food Co., as its share price dropped 3.80 percent to SR26.60. Other decliners included National Agricultural Development Co. and Naseej International Trading Co., with their share prices dropping 3.05 percent and 2.63 percent, respectively, to SR46.05 and SR44.50. 

Fawaz Abdulaziz Alhokair Co. and Thimar Development Holding Co. were also among the poor performers of the day. 

Meanwhile, Alqemam for Computer Systems Co. was the top performer on Nomu, while Academy of Learning Co. was the worst performer. 

In announcements, Al-Babtain Power and Telecommunication Co. disclosed the results of the third extraordinary general assembly meeting, which included the approval of around a SR213 million increase in the firm’s capital.

The company’s capital has surged from SR426 million to an estimated SR639 million, and the number of shares has increased to 63 million from the previous 42 million. This capital increase aligns with the company’s plan to support its financial position and explore new investments in available untapped opportunities, according to a bourse filing. 

In another development, Saudi Awwal Bank announced its intention to offer first-tier capital sukuk denominated in riyals through private placement within the Kingdom. HSBC Saudi Arabia has been appointed as the organizer and distributor of the program, with the offering value to be determined based on market conditions at a later time. 


RSI secures $88m financing from Al Rajhi Bank for acquisition 

RSI secures $88m financing from Al Rajhi Bank for acquisition 
Updated 01 October 2023
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RSI secures $88m financing from Al Rajhi Bank for acquisition 

RSI secures $88m financing from Al Rajhi Bank for acquisition 

RIYADH: Saudi modular building solution provider Red Sea International has sealed a SR330 million ($87.9 million) financing deal with Al Rajhi Bank. The arrangement includes a SR250 million loan to facilitate RSI’s acquisition of a 51 percent stake in the Fundamental Installation for Electric Work Co. Ltd., also known as First Fix. 

The agreement is valid until the completion of the acquisition process, with a repayment tenure of seven years, providing both RSI and Al Rajhi Bank with financial clarity, according to a bourse filing.  

Guarantees for the financing include a pledge of shares in RSI’s sister company and First Fix.  

RSI has also allocated project proceeds to cover the loan’s annual repayment, including interest, and has provided a promissory note under the agreement, backed by one of its sister companies, noted the filing. 

The deal involves related parties Al-Dabbagh Group, Tanmiah Commercial Group, and Petromin Corp. 

In June, RSI announced the acquisition of 51 percent of the share capital of First Fix through cash consideration. 

“RSI will gain a critical stream of electromechanical construction capability which are very crucial to every single client need,” said RSI CEO Khalid Fagih in a statement issued during the stake buyout.  

Established in 2014, First Fix is a Saudi construction firm with over 190 top projects, offering integrated design, engineering, and construction disciplines in mechanical, electrical, and plumbing. 

In another development, Al Rajhi Bank, in August, entered into an agreement with the National Center for Privatization to enhance public-private partnerships.  

The deal aims to create opportunities for local and international investors in privatization initiatives. It also involves market research, financial guidance, local and international marketing consultancy, events management, training programs, and knowledge development. 

The deal was signed by Hani Al-Saigh, vice president for strategic marketing and knowledge management at the NCP, and Hossam Al-Basrawi, general manager of corporate banking at Al Rajhi Bank. 


Saudi Arabia issues 136 industrial licenses in August 2023

Saudi Arabia issues 136 industrial licenses in August 2023
Updated 01 October 2023
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Saudi Arabia issues 136 industrial licenses in August 2023

Saudi Arabia issues 136 industrial licenses in August 2023

RIYADH: Saudi Arabia’s economic activity gained momentum with the Ministry of Industry and Mineral Resources issuing 136 industrial licenses in August compared to 102 in July.

According to the Saudi Press Agency, the food product manufacturing sector received 29 permits, followed by the non-metallic mineral industry with 21.

Moreover, the rubber and plastics industry obtained 15 permits, and 12 licenses were issued in the paper production sector.

The SPA report added that the ministry issued 795 industrial licenses between January and August. The number of factories during this period reached 11,110, taking the total investments made by these firms to SR1.489 trillion ($400 billion).

The SPA report further noted that investment volume in August for new licenses stood at SR1.6 billion.

Small enterprises accounted for 83.09 percent of the total licenses issued in August, followed by medium enterprises with 16.18 percent and micro-enterprises with 0.74 percent.

The report added that national factories held the most significant chunk of the total licenses at 76.47 percent, followed by foreign establishments and joint-investment firms with 16.18 percent and 7.35 percent, respectively.

On the other hand, 87 factories started production in August, with an investment of SR1.5 billion. Of these plants, 79.31 percent were national factories, 12.64 were foreign establishments and 8.64 percent were joint investment firms.

Meanwhile, the ministry issued 36,293 certificates of origin in August, up from 34,926 in July.

The initiative is seen as a part of the ministry’s efforts to boost exports across various sectors.

A certificate of origin is a pivotal document in international trade, validating that the exported goods are on a nationality basis.