Global South must focus on developing human capabilities, experts say

Rami Ahmad, Islamic Development Bank’s senior adviser to the president.
Rami Ahmad, Islamic Development Bank’s senior adviser to the president.
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Updated 29 February 2024
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Global South must focus on developing human capabilities, experts say

Global South must focus on developing human capabilities, experts say

RIYADH: Discussions on investing in human capital in the Global South must consider the effects of geopolitical tensions, refugee crises, and disease outbreaks, a panel of experts said. 

Rami Ahmad, Islamic Development Bank’s senior adviser to the president, noted that, like many other multilateral development banks, the ISDB was “priding itself” on its investments in human capital and infrastructure in the region prior to 2011. 

Following the events of the Arab Spring in the early 2010s, when many countries “erupted,” it became evident that investments in human capital, from early education to vocational training, rather than merely in infrastructure, create more sustainable outcomes. 

Speaking on a panel at the Human Capability Initiative in Riyadh, the senior adviser affirmed that at the heart of “all this chaos” is a lack of “real development” of the human capabilities in these countries.

Ahmad cited the ongoing war in Gaza, saying: “Look at how many years of developing and financing health and education projects in a place like Gaza, for example, just to see it go down the drain in a few weeks. That how we deal with restoring the capabilities of 2 million people and storing the capabilities of 2 million people. We, as financial institutions, we plan, we implement, and then something like this happens.”

He added: “This is why we need to do education differently. We need to come at the early stages of childhood. We need to have this dialogue instead of monologue. We need to deal with the minorities, people like we were talking about — the refugees. There are 70 million people in the world who are refugees or internally displaced people. How do you deal with their education and we need a holistic approach. It’s not the education only. We need to talk about food security, we need to talk about health and well-being.” 

As the World Health Organization’s regional director for the Eastern Mediterranean, Hanan Balkhy, declared that in the scenarios outlined by Ahmad of internally displaced populations and geopolitics, retaining the health workforce becomes “very challenging.”

She stressed the need for a “heavy lift” for education within the sector in the region and a shift in mindset that pushes nations toward looking at peace as a worthy investment. 

The director said: “We talk about building for years and destroying within hours. So, if we can preach for peace as much as we can, that’s number one. Number two, we need to be innovative in preparing the youngsters.”

Balkhy highlighted the region’s “very low” focus on public health and how comprehensive strategies are now essential given that infrastructure alone isn’t sufficient to address complex health scenarios. 

“It’s not that tertiary care hospital, it’s not that very well-equipped ICU or operating room. It is how do you give vaccinations for two million people who are actually having babies on a border between two countries? How do you access them,” she posed. 

Echoing the notions introduced by the regional director, the IsDB executive affirmed that whether public health outbreaks or conflicts, there needs to be a significant shift in how “we provide finance” ensuring that investments are used to build in a “real sustainable development way.”

One of the proposed solutions by the panelists was ensuring the ability to retain local talent. 

According to the World Bank, there is $160 billion annually in forgone income within advanced economies, caused by the “brain drain” that is trickling from the developing nations to the developed world. 

Similarly, the WTO outlined that while the African continent carries 24 percent of the world’s disease burden, it has only 2 percent of the global workforce because “all these brains have migrated to the north,” Ahmed noted. 

“We in ISDB provide 18,000 scholarships, some of them came back to their countries but many of them really they stay in the north, and they feel more comfortable. We need to change the policies about scholarships, which makes sure they come back via the attractive environment for them to come back or try to benefit from what they are doing,” he said

“Without doing so, we are basically giving our best and brightest and having a bad investment, very policies, where we finance and we invest in basic education and then we send the best and brightest and we don’t reap the benefits from them in charging the future,” he concluded.


PIF acquires 15% stake in Heathrow Airport

PIF acquires 15% stake in Heathrow Airport
Updated 12 December 2024
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PIF acquires 15% stake in Heathrow Airport

PIF acquires 15% stake in Heathrow Airport
  • Statement says move underscores commitment to impactful global investments

RIYADH/LONDON: Saudi Arabia’s Public Investment Fund announced on Thursday it had finalized the acquisition of a 15 percent stake in FGP TopCo, the holding company of Heathrow Airport Holdings.

The stake was purchased from Ferrovial SE and other shareholders of FGP TopCo.

Simultaneously, Ardian, a private investment firm, acquired a 22.6 percent stake in FGP TopCo through a separate transaction.

A PIF statement said the strategic investment underscored its commitment to impactful global investments that bolstered key sectors, and its broader strategy of supporting sustainable and long-term growth in major international markets.

Turqi Al-Nowaiser, deputy governor and head of international investments at PIF, said the fund was pleased to be investing in Heathrow, calling it a “vital UK asset and a world-class airport.”

He added: “We believe in the importance of infrastructure as a key sector in supporting the transition to net zero.

“Heathrow acts as a crucial gateway to the world, and we look forward to supporting Heathrow’s management in its efforts to secure the sustainable growth of the airport and to continue to maintain its position as a global aviation hub.”


NEOM partners with GMT Robotics to revolutionize construction

NEOM partners with GMT Robotics to revolutionize construction
Updated 12 December 2024
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NEOM partners with GMT Robotics to revolutionize construction

NEOM partners with GMT Robotics to revolutionize construction

RIYADH: NEOM has signed a landmark investment agreement with GMT Robotics, one of Europe’s leading innovators in advanced construction technology, to accelerate the delivery of its capital projects, the Saudi Press Agency reported on Thursday.

The deal, spearheaded by the NEOM Investment Fund, seeks to integrate robotics in construction. This collaboration highlights NEOM’s role as a trailblazer in modern construction techniques, including automation and robotics.

GMT Robotics, based in Copenhagen, specializes in robotic systems designed for the rebar market. Its robotic rebar cage assembly and handling systems significantly improve both productivity and safety in construction.

By reducing onsite workforce requirements by up to 90 percent through offsite prefabrication, GMT Robotics enhances efficiency while maintaining high safety standards.

Majid Mufti, CEO of NEOM Investment Fund, commented: “Our investment in GMT Robotics reflects NEOM’s commitment to advancing transformative technologies that will unlock next-generation industries. By localizing these cutting-edge technologies, we are laying the foundation for sustainable development, creating high-skilled jobs, and fostering the growth of commercially viable sectors. Partnerships like this are critical to turning NEOM’s visionary goals into reality, solidifying its position as a global innovation hub.”

As part of the agreement, the technology will be localized within NEOM, with rebar cages to be produced in local factories. This initiative also opens up new opportunities for Saudi engineers to apply robotics to other areas of construction.

Bandar Ashrour, sector head of design and construction at NEOM, added: “Aligning construction technology startups with NEOM’s ambitious goals is essential to our strategy. GMT’s expertise in robotics offers unprecedented efficiency, consistency, and sustainability in construction. We look forward to a dynamic collaboration that will contribute to safer, more sustainable infrastructure and enhance the next generation of NEOM-built assets.”

This partnership is yet another milestone in NIF’s strategic investment efforts, which focus on supporting NEOM’s sector strategies by fostering innovative technologies, establishing new businesses, and creating jobs to drive economic growth in the region.

The global market for construction robotics, valued at $168.2 million in 2022, is projected to grow over 360 percent to reach $774.6 million by 2032.


‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
Updated 12 December 2024
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‘Uplifting’ Gulf development model will return to US, Eric Trump predicts

‘Uplifting’ Gulf development model will return to US, Eric Trump predicts
  • Security and stability make Saudi Arabia a safe bet
  • ‘Sky’s the limit’ in GCC, says Trump

RIYADH: The mindset in the Gulf region that fosters the development of iconic projects is “uplifting” and will make its way back to the US under Donald Trump’s next presidency, Eric Trump told Arab News on Thursday.

The president-elect’s second son, who serves as executive vice president of the Trump Organization, praised the region for its innovative approach, which he believes defies common misconceptions held by Western nations.

During a visit to the Saudi capital following an official launch event in Jeddah for a new Trump Tower, Eric Trump suggested that the Gulf’s no-limits mentality is something that the incoming US president will adopt.

“It’s a different mindset in the Gulf, and that mindset is going to return to America, believe me, in the next four years under my father. But that mindset really, it’s uplifting. It’s almost empowering. It makes you want to come over here and do something really great. And it kind of makes you want to say no to those other countries where it’s just impossible to navigate the political system. They’re just too cumbersome. They’re too lethargic.”

Trump went on to explain that Gulf countries actively encourage developers to realize their grand visions, offering not just permits but also support for larger, more ambitious projects.

 

“They tell you, ‘not only are we going to give you the permits, but we actually want you to make your project bigger. We want you to make it even more iconic. We want you to make it more luxurious. We want you to attract the greatest restaurants and the greatest amenities. Sky’s the limit.’ And that's a beautiful thing for a developer,” he said.

He also revealed that the Trump Organization is planning additional projects in Riyadh, though he did not disclose further details.

The Trump Organization has lent its branding to several properties across the Gulf region, including a hotel and golf club in Oman, a golf club and tower in Dubai, and most recently, the Jeddah hotel. Trump Tower Jeddah is being developed in partnership with Saudi developer Dar Global, with the two companies having previously collaborated on projects in Oman and Dubai.

Praising Saudi Arabia’s safety and political stability, Trump said: “Obviously, the people in this country love us, love our company, love our brand, love what we stand for. We have so much unbelievable support in this amazing country.”

Dar Global CEO Ziad El Chaar speaks to Arab News during an interview on Thursday. AN photo

Ziad El Chaar, CEO of Dar Global, told Arab News that the Trump brand is synonymous with success. “The Trump name is a global brand that people attach to it always a very big sense of success,” he said.

“You can see the projects of Trump; they always feature the best material, the best design, and are really created for a great living experience and customer experience.”

Eric Trump’s visit to the Kingdom came after attending a cryptocurrency conference in Abu Dhabi earlier in the week.

 

The Trump family has ties to a new cryptocurrency called World Liberty Financial, and Donald Trump has pledged to launch a strategic national crypto stockpile during his second term.

Bitcoin’s value surged following Trump's election win in November, and this week it surpassed the $100,000 mark for the first time.


Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks
Updated 12 December 2024
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Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

Islamic Trade Finance Corp. allocates $566m to back Uzbekistan’s local banks

RIYADH: Thirteen banks in Uzbekistan have secured a combined $566 million in financing through a key initiative by the International Islamic Trade Finance Corp., a member of the Islamic Development Bank Group.

The funding aims to foster job creation, drive economic development, and empower local communities, according to a report by the Saudi Press Agency.

ITFC is committed to using these funds to support the private sector’s import and pre-export requirements, with a particular focus on small and medium-sized enterprises, which are vital to the country's economic growth and resilience.

This initiative aligns with the ITFC's broader mission to provide integrated trade solutions to member countries of the Islamic Development Bank. The institution, which currently has 57 member states, is primarily funded by Saudi Arabia, the largest shareholder with a 22.5 percent stake in the corporation.

The funds will specifically target SMEs, which are globally recognized as key drivers of economic growth. The ITFC has already provided over $69 billion in financing to the member countries of the Organization of Islamic Cooperation, solidifying its position as a leading provider of trade solutions within the OIC community.

In addition to financial support, ITFC also focuses on improving access to trade finance and offering technical assistance programs. These efforts equip member-state entities with the tools they need to compete successfully in the global marketplace.


Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099
Updated 12 December 2024
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Closing Bell: Saudi main index sheds 50 points to 12,099

Closing Bell: Saudi main index sheds 50 points to 12,099

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward trend for the second consecutive day on Thursday as it shed 49.86 points or 0.41 percent to close at 12,099.33. 

The total trading turnover of the benchmark index was SR4.77 billion ($1.27 billion), with 101 of the listed stocks advancing while 123 declined. 

The Kingdom’s parallel market Nomu also slipped by 0.57 percent to 31,100.89, while the MSCI Tadawul Index shed 7.37 points to close at 1,519.01. 

Sumou Real Estate Co. was the best-performing stock of the day. The company’s share price soared by 9.98 percent to SR44.65. 

Zamil Industrial Investment Co. was another top gainer, as the firm’s share price increased by 6.62 percent to SR33.80.

Meanwhile, the share price of Al-Baha Investment and Development Co. increased by 6.45 percent to SR0.33, and Saudia Dairy and Foodstuff Co. also advanced by 5.88 percent to SR360.

Conversely, Makkah Construction and Development Co.’s share price slipped by 3.04 percent to SR114.80. 

The best performer on the parallel market was Riyadh Steel Co., as its share price increased by 17.37 percent to SR2.50. 

Other top performers on Nomu were Dar Almarkabah for Renting Cars Co. whose share prices increased by 12.90 percent to SR70 while Watani Iron Steel Co.’s share prices grew by 12.20 percent to SR3.03.

On the announcements front, Almasane Alkobra Mining Co. revealed that it received a license from the Ministry of Industry and Mineral Resources to explore chromium, manganese, copper, and nickel in the Al-Baha region. 

In a statement to Tadawul, the mining firm said the license is valid until Dec. 10, 2029. 

The company added that the timing of any potential development of this license will become clear after the completion of exploration work and studies within the legal period. 

AMAK’s share price, however, slipped by 2.49 percent to SR70.40.