Saudi EXIM Bank, Japan’s Mizuho Bank sign MoU

Saudi EXIM Bank, Japan’s Mizuho Bank sign MoU
Saudi EXIM Bank and Japan’s Mizuho Bank sign an MoU in Jeddah. (SPA)
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Updated 26 July 2023
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Saudi EXIM Bank, Japan’s Mizuho Bank sign MoU

Saudi EXIM Bank, Japan’s Mizuho Bank sign MoU
  • Agreement aims to promote cooperation to boost trade opportunities and job prospects

RIYADH: In a bid to promote the diversification of Saudi Arabia’s non-oil exports, the Saudi Export-Import Bank has inked a memorandum of understanding with Japan’s Mizuho Bank, the Saudi Press Agency reported on Tuesday.  

The MoU was signed during the Saudi-Japanese roundtable, which was held in Jeddah to boost trade and investment ties between the two countries.  

Saudi EXIM Bank CEO Saad bin Abdulaziz Al-Khalb and Seiji Imai, chairman of the board of directors of Mizuho, attended the signing.  

The agreement aims to promote cooperation to boost trade opportunities and job prospects, including Saudi exports of goods and services. It also allows for the exchange of knowledge and information on export credit policies and procedures as well as ideas on how to launch initiatives to develop new products. 

Al-Khalb said that the signing of the MoU reflected the Saudi EXIM Bank’s role in forming international partnerships to support the growth and diversification of Saudi Arabia’s non-oil exports and raise their competitiveness. He lauded Mizuho Bank for its skills and extensive network of international relations.  

Saudi EXIM Bank aims to support the Kingdom’s non-oil exports to the international market by bridging funding gaps and minimizing risks faced by exporters to realize Vision 2030. 

The trade relation between the countries received a further boost when Japanese Prime Minister Fumio Kishida made an official visit to the Kingdom earlier this month.  

During his visit, the prime minister stressed the importance of the “strategic” partnership, which has witnessed steady growth over the years to include many sectors besides oil, Al-Riyadh newspaper reported. 

He also noted that the Kingdom supplies Japan with about 40 percent of its crude oil needs, which further highlights the importance of a strategic collaboration between the two countries.    

The prime minister also stressed Japan’s keenness to work closely with the Kingdom in providing expertise and modern technologies within the framework of the Saudi-Japanese Vision 2030, which was launched by the two countries back in 2016.  

On the sidelines of his visit, both countries exchanged 26 pre-signed economic agreements on July 16 at the Ritz Carlton hotel in Jeddah.  

The signed deals encompassed healthcare, clean energy, mining and digital innovation sectors. 


Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals
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Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

Red Sea Global launches national academy to train and upskill Saudis, CEO reveals

RIYADH: Young Saudis will soon be further qualified in terms of technical specializations as the Red Sea National Academy launches, according to the group CEO. 

In an interview with Arab News on the sidelines of the Human Capability Initiative in Riyadh, John Pagano explained that as the entity advances tourism destinations in the Red Sea and Amaala, there will be a requirement for additional participants within the industry to meet the demands of the labor market. 

This aligns with the Saudi Vision 2030 goal of ensuring that the Kingdom’s citizens have the capabilities to compete globally by instilling values, developing basic and future skills, and enhancing knowledge. 

“The industry needs 1.2 million new participants to help deliver this new industry, this new, exciting and important industry from an economic point of view, from a diversification point of view,” Pagano said. 

“We’ve decided that we need to provide the opportunities to train and upskill these young Saudis in an environment that is relevant to where they’re going to ultimately work,” the CEO added. 

He went on to say that the initiative will work on training a couple of thousand students per year, all of whom will ultimately graduate and get jobs within the Red Sea and Amaala projects.

In terms of location, Pagano disclosed that the newly inaugurated academy will reside in Al-Wajh, which sits between the Red Sea and Amaala. 

“It’ll become a hub for not only our training but also as a community center, where we’re going to continue to provide English language courses for the local population to, again, give them opportunities to find new jobs within this new burgeoning industry,” the CEO said. 

He clarified that the group will often bring in specialist providers to conduct the training. In some cases, the group will be doing the training directly themselves. 

“Our preference and our priority would be to give local community residents, you know, a priority if they’re interested in are willing to take on, you know, that burden of going through the training. But ultimately, it’s open for all nationalities that will ultimately work within the destination,” Pagano noted. 

Speaking during a session titled “Developing Human Capabilities – The Power of Tourism,” the CEO explained how the entity plans to propel the local community further. 

“Our first class of vocational students, 430 of them, graduated last July. Almost 40 percent of them came from our local communities on the West Coast and that’s because we aim to benefit those communities where opportunities for advancement have historically been scarce,” he clarified. 

“Our program in airport services is the first of its kind in the nation. We’re also the first in the country to provide vocational training and tourism security. We already have 400 students enrolled and they’re on track to graduate next year, again in time for opening up our resorts,” he also underlined.

“In total, more than 1,300 talents are either studying in our programs or have already graduated from them. And these numbers will add up quickly. By 2030, we expect to have graduated 10,000 vocational students,” Pagano said in his speech.

With regards to the performance of the group in general, the CEO highlighted during the interview with Arab News that: “Last year and into the beginning of this year has been a pivotal, momentous period for us, a milestone.”

This comes as Red Sea has recently opened its first two resorts, including The Six Senses Southern Dunes and the Saint Regis Red Sea Resort. By the end of this year, the group intends to launch four additional resorts, he disclosed. 

“Meanwhile, we’re busy working on 19 other resorts, 11 at Red Sea and eight at Amaala, all of which are going to open next year,” Pagano revealed. 

In terms of operations, the CEO said: “We’re open for business today. The airport is running. So, we have eight flights a week in and out of the Red Sea direct.” 

That said, the destination is currently receiving guests regularly from the local and regional market, including Europeans as well, he added.

“So, we’re in that capacity-building mode where people are now starting to learn about the destination,” Pagano concluded. 

HCI is the first-ever global cooperative platform designed to unify international efforts and enrich the global dialogue on the challenges and opportunities for developing human capabilities. 

According to the HCI website, the two-day event will explore opportunities in various areas, including skill development, the future of work, education, talent, and technology.   

It will bring together policymakers, thought leaders, investors, and entrepreneurs to catalyze international collaboration. It also caters to participants who want to maximize resilience, explore opportunities, and promote innovative policy design and solutions.


Jordan set to receive investments of up to $100m annually from the EBRD

Jordan set to receive investments of up to $100m annually from the EBRD
Updated 18 min 33 sec ago
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Jordan set to receive investments of up to $100m annually from the EBRD

Jordan set to receive investments of up to $100m annually from the EBRD

RIYADH: Jordan’s energy and green economy sectors are set to receive over $100 million in investment annually, according to a top official.

The First Vice President of the European Bank for Reconstruction and Development Jurgen Rigterink revealed to the Jordan News Agency that the bank looks forward to expanding its activities and investments in the country to reach over $100 million annually, covering areas such as energy, water, clean energy, and the green economy.

Regarding the bank’s investments in the country, Rigterink mentioned that over the past 12 years, the bank has invested in 71 projects totaling an estimated €2.1 billion ($2.2 billion), with €268 million in concessional financing. 

He added that last year, the bank invested in five projects worth €62 million.

Rigterink affirmed that Jordan’s economy is performing well in the medium term and is moving at a stable pace despite the crises facing the region. He attributed the performance to successfully implementing the economic modernization vision and attracting foreign direct investment.

In an interview with the agency, also known as Petra, he highlighted the economic modernization vision launched by the government last year.

The vision includes developmental and strategic projects to increase economic growth, reduce unemployment rates, and issue laws and legislation supporting this vision, including investment regulations, public-private partnerships, and combating tax evasion.

The VP is visiting Amman to familiarize himself with the bank’s activities in Jordan and identify economic and investment opportunities in the country to determine potential areas for future bank support.

He reiterated the bank’s support for Jordan during this challenging time for the region and emphasized that discussions were held with Deputy Prime Minister for Economic Affairs Nasser Shraideh and Minister of Planning and International Cooperation Zeina Toukan regarding current and future investments to support the country’s economic growth and stimulate job creation.

Regarding the impact of the Gaza war on the country’s economy, Rigterink expected it to affect the local economy, which has shown resilience against challenges, stable growth, and low inflation rates due to the pegging of the dinar to the dollar.

He explained that the private sector would remain cautious about initiating new investments or expanding existing ones due to the uncertain situation.

Regarding the Green Star Venture programme, Rigterink affirmed its aim to enhance the competitiveness and growth of small, medium, and start-up companies in Jordan, contributing to the country’s green transformation.

He highlighted the role of small and medium-sized enterprises in achieving a greener economy by providing innovative eco-friendly products and services, noting that the bank has provided technical and advisory support to 500 SMEs, considering them as the backbone of economies and job providers.

The VP confirmed the bank’s support for SMEs by providing banking facilities via local financial institutions, mentioning the launch of green economy financing to boost green investments in Jordan’s private sector through partner local financial institutions.

He also emphasized the bank’s commitment to supporting Jordan’s transition to a comprehensive, competitive, and sustainable economy, mentioning several Aqaba Special Economic Zone projects, such as an eco-friendly electric bus initiative and a solid waste management undertaking.

Jordan joined the bank as a member in 2011, was granted recipient country status for aid in 2013, and has a permanent office to manage its operations in Jordan, the West Bank, the Gaza Strip, and Lebanon.


Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals
Updated 32 min 6 sec ago
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Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

Saudi digital economy accounts for 14% of Kingdom’s GDP, new GASTAT analysis reveals

RIYADH: Saudi Arabia’s digital economy contributed 14 percent to the Kingdom’s gross domestic product, according to a first-of-its-kind survey conducted by the General Authority for Statistics. 

The study, which was carried out in 2023 and covers the previous 12-month period, set out the areas that have seen significant growth in this field.  

The survey aligns with recommendations from the Organisation for Economic Co-operation and Development and the UN Conference on Trade and Development. 

According to the Digital Economy Survey, nearly half of all establishments, at 48 percent, invested in cloud computing services, encompassing various offerings like postal services, security software applications, file storage, and database hosting. 

Information and communication activities led the pack, with 68.3 percent of institutions in this sector purchasing cloud services, followed by education at 66.9 percent, and professional, scientific, and technical activities at 59.5 percent. 

Around 20.3 percent of establishments provided services via electronic applications, with education leading at 44.5 percent, followed by accommodation and food services at 39.9 percent, and arts and entertainment at 31.9 percent. 

In terms of electronic purchases, 18.5 percent of institutions placed orders for goods and services online, with information and communication establishments leading at 40.1 percent. They were followed by professional, scientific, and technical activities, as well as financial and insurance activities, both at 35.7 percent. 

Moreover, 60.1 percent of institutions utilized internet-connected devices or systems, encompassing smart alarm systems, meters, lamps, and surveillance cameras. 

Health and social work activities establishments were the highest users at 67.4 percent, followed by financial and insurance activities, and education activities, each at 65.2 percent. 

The survey aims to provide a database for conducting studies and developing indicators about the digital economy sector in Saudi Arabia. It serves as a reliable basis for research and provides decision-makers with valuable data for local, regional, and international comparisons. 


Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister
Updated 34 min 8 sec ago
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Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

Private investment in emerging sectors to create ‘tremendous opportunities,’ says Saudi minister

RIYADH: Private sector investment in Saudi Arabia is poised to create “tremendous opportunities” across the digital economy, tourism, financial services, and biotech sectors, said a top minister. 

During the second day of the Human Capability Initiative in Riyadh, the Kingdom’s Minister of Investment Khalid Al-Falih highlighted that by the end of this decade, the economy aims to grow two and a half times its pre-Vision 2030 level, with private sector participation increasing from 40 percent to 65 percent. 

He said: “Because of that, the size and scale of the private sector will be four times what it was during this decade alone, adding more than $3 trillion of investments to the domestic economy through the national investment strategy and other initiatives.” 

The minister underscored that a significant portion of those investments will be in new and developing economic sectors including the digital economy, tourism, and financial and professional services.

Healthcare, pharma, and biotech were also highlighted.

“These sectors will create tremendous opportunities for human capital development, as they will require a completely different set of skills and a fresh worldview and outlook,” said Al-Falih, adding: “The world is undergoing significant structural shifts marked by the energy transition, automation, and digitalization, new and shifting supply chains, and emerging disruptive technology.”  

The minister explained that while it may not be possible to predict precisely how much these macro trends will affect human capital and which jobs will be in demand, it is clear they will have a tremendous impact. 

“Since the beginning, we’ve seen firsthand what happens when investments catalyze human potential. The 90 years of development in the energy sector, sparked by the Aramco investment, is perhaps the best example but far from the only one,” Al-Falih said. 

“So when a new sector emerges, such as renewable energy, fintech, or biotech, the skills gap that arises will be filled through training, upskilling, or, in the case of Saudi Arabia, an open country, by inviting skilled people from around the world to meet that demand. Before you know it, you have an entirely new skill pool ready to be deployed,” he added. 


Office rents in Riyadh soar as demand outstrips supply: CBRE

Office rents in Riyadh soar as demand outstrips supply: CBRE
Updated 29 February 2024
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Office rents in Riyadh soar as demand outstrips supply: CBRE

Office rents in Riyadh soar as demand outstrips supply: CBRE

RIYADH: Office space rents across all grades in Riyadh rose in 2023 due to increased demand from national and international occupiers, a study showed.

According to a report released by real estate consultancy services CBRE, average prime rents in Saudi Arabia’s capital city increased by 20.7 percent in the 12 months leading up to the fourth quarter of 2023. 

The analysis added that average workplace rents in Riyadh for Grades A and B grew by 13 percent during the same period. 

Similarly, occupancy rates of Grade A properties reached 100 percent, while it stood at 99.4 percent in Grade B spaces. 

Grade A workplaces enjoy a premium over the average rent prevailing in the area due to their location, infrastructure, and new build. 

On the other hand, Grade B office properties are more affordable than Grade A spaces. 

The surge in workplace rents in Riyadh during 2023 can be attributed to the Kingdom’s regional headquarters program, which encouraged international entities to establish their presence in the capital city. 

According to official data, over 200 international firms have already procured licenses to operate their regional headquarters in the Kingdom. 

“On the whole, demand in Saudi Arabia continues to severely outpace supply across almost all real estate market sectors, hence, we have seen relatively strong levels of performance in 2023, despite some headline economics headwinds,” said Taimur Khan, head of research at the Middle East and North Africa region of CBRE. 

He added: “In 2024, whilst supply across many sectors is set to expand, we expect that it will still continue to lag demand materially, as a result we expect that performance levels will remain robust throughout the year.” 

CBRE further revealed that Grade A office rents in Jededah increased by 19.7 percent from a year earlier, whereas Grade B rents slightly increased by 1 percent. 

Similarly, occupancy rates for both Grade A and Grade B offices in Jeddah rose to reach 92.5 percent and 82.1 percent, respectively. 

On the other hand, office space rents in Damman increased by 7.4 percent in 2023, while it rose by 7.2 percent in Khobar. 

Throughout 2023 up to the fourth quarter, average apartment prices across most major cities in Saudi Arabia grew, with prices in Riyadh, Dammam and Khobar increasing by 10.7 percent, 1.8 percent and 2 percent, respectively. 

However, in Jeddah’s apartment market, prices witnessed a decline of 1.9 percent. 

Similarly, in the year to the fourth quarter of 2023, villa prices in Riyadh, Jeddah, Dammam, and Khobar increased on average by 5.5 percent, 4.8 percent, 0.3 percent, and 1.1 percent, respectively.

In the residential sector, total transaction volumes in Riyadh increased by 63.7 percent in the fourth quarter compared to the same quarter in 2022, reaching a value of SR22.2 billion ($5.92 billion). 

Jeddah has also witnessed an increase of 23.4 percent in terms of transaction volumes valued at SR11.3 billion, while Dammam’s volumes declined by 23.4 percent to SR2.3 billion in the fourth quarter of 2023.