Budget deficit is ‘intentional’ to ensure sustainable development

Saudi Finance Minister Mohammed Al-Jadaan said deficit is not merely a consequence but an attempt to achieve development goals. SPA
Saudi Finance Minister Mohammed Al-Jadaan said deficit is not merely a consequence but an attempt to achieve development goals. SPA
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Updated 12 May 2024
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Budget deficit is ‘intentional’ to ensure sustainable development

Budget deficit is ‘intentional’ to ensure sustainable development
  • ‘As long as deficit is directed toward productive expenses, it is acceptable,’ says Al-Jadaan

RIYADH: Saudi Finance Minister Mohammed Al-Jadaan on Tuesday said the Kingdom is intentionally running a budget deficit to achieve its development goals.

The Finance Ministry announced the quarterly budget performance report on Sunday. As per the report, the Kingdom posted a deficit of SR12.4 billion ($3.3 billion) in Q1, marking the sixth consecutive quarterly deficit with revenues amounting to SR293.4 billion and expenditures hitting a record SR305.8 billion.

“We’re intentionally running a sustainable deficit for economic development, contrasting with mandatory borrowing in some nations for essential but unproductive expenses,” the minister told Al-Eqtisadiyah in an interview.

He said the deficit is not merely a consequence but an attempt to achieve development goals. The minister said the government prioritizes spending to accelerate the implementation of its development strategies and projects.

Al-Jadaan also shed light on the overall situation of the global economy and how Saudi Arabia’s prudent fiscal policies have supported growth and enhanced the Kingdom’s resilience in dealing with changes.

HIGHLIGHTS

Efforts are underway to attract domestic and foreign investments that stimulate economic growth and contribute to reducing the budget deficit.

Strategic spending has a multiplier effect on the economy, like creating jobs and enhancing trade through infrastructure investments.

Saudi Arabia is committed to optimizing government expenditures by directing them toward promising strategies.

Regarding the budget deficit and its potential impact on the economy, he reassured citizens that managing the budget deficit is a top priority.

The minister clarified that as long as the deficit is directed toward productive expenses, the government views it as acceptable, as it generates economic returns that exceed the cost of debt.

Highlighting sustainable financial policies, Al-Jadaan cited the government’s efforts to reduce its reliance on oil revenues by diversifying sources of income.

He said non-oil revenues made up 38 percent of the total income in 2023, compared to 9 percent in 2015. The minister said the ratio of non-oil revenues to covering expenditure ceilings was about 17 percent in 2015 and surged to reach 35 percent in 2023.

Al-Jadaan said: “Financial policies can enhance financial inclusion and access to funding, both vital for supporting entrepreneurship, small and medium-sized enterprises, and innovation. This contributes to achieving the goals of Saudi Vision 2030, which has succeeded in unprecedented achievements across various sectors.”

He also addressed the efficiency of government spending and its pivotal role in fostering economic development and bolstering economic resilience.

“We are committed to optimizing government expenditures by directing them toward promising strategies aimed at diversifying the economic base,” the official added.

He said by the end of 2023, total government spending had reached approximately SR1.29 trillion, reflecting continued progress in implementing initiatives and structural reforms.

These initiatives include regional and sectoral strategies supportive of structural transformation for comprehensive sectoral development and economic diversification, Al-Jadaan added.

Moreover, the finance minister revealed that active efforts are underway to attract both domestic and foreign investments that stimulate economic growth and contribute to reducing the budget deficit.

Commenting on the impact of strategic spending on the national economy, he said it “involves directing and allocating financial resources toward specific goals and priorities that align with long-term economic objectives.”

This is achieved by strategically guiding funds, enabling governments and institutions to stimulate economic growth and development, foster innovation, and enhance productivity, he explained.

The minister went on to say that for instance, investments in additional industrial zones, expanding ports’ capacities, and investing in roads have led to significant growth in industrial investments and logistics services, creating business opportunities and employment for many citizens.

“This supports economic activity and raises the non-oil gross domestic product, thereby increasing non-oil revenues and covering additional debt costs,” he added.

Al-Jadaan said that strategic spending has a multiplier effect on the economy, like creating jobs and enhancing trade through infrastructure investments.

The minister also highlighted Saudi Arabia’s remarkable international presence over the past seven years.

He emphasized that Saudi Vision 2030 has positioned the Kingdom as a preferred and leading destination worldwide.

Al-Jadaan explained: “The foreign direct investment as a percentage of GDP reached 2.4 percent, which stimulated economic growth and bolstered the Kingdom’s competitiveness in the global market, leading it to advance seven positions to become one of the top 20 countries in the Global Competitiveness Report for the year 2023.”

Additionally, Saudi Arabia participated in regional economic integration initiatives, strengthened close economic relations with neighboring countries, and capitalized on regional markets to achieve mutual benefits.

“The Ministry of Finance has undertaken the task of enhancing international cooperation in financial policies through fostering international economic and trade partnerships, exchanging expertise, and promoting development at both regional and global levels,” the minister said.

Al-Jadaan emphasized Saudi Arabia’s commitment to promoting international dialogue. “We take pride in the Kingdom’s strong relations with international organizations, believing in the importance of international cooperation to achieve development, enhance peace and international security, promote human rights, combat climate change, and foster economic collaboration.”

Saudi Arabia chaired the G20 meetings, the most important global economic forum, in 2020 and effectively managed global consensus on addressing the COVID-19 pandemic.

He emphasized that the Kingdom has presented initiatives that are still being implemented globally, including the Debt Service Suspension Initiative for the benefit of poor countries, further enhancing its international standing.

Moreover, Saudi Arabia won the bid to host the 2030 International Expo, further solidifying its international position. The Kingdom’s nominees also secured victories in several international organizations.

In terms of financial and monetary policy, Saudi Arabia’s recent successes and its active participation in local, regional, and international events led the IMF to choose the Kingdom to chair the International Monetary and Financial Committee.

“This reflects the close and long-standing relationship between the two sides, affirming the Kingdom’s commitment to actively participate in shaping and implementing international financial and economic policies,” Al-Jadaan added.

The minister highlighted the IMF’s Riyadh-based regional office and said: “The opening of the IMF’s regional office in Riyadh is a strategic move that reflects the Kingdom’s commitment to enhancing international cooperation and promoting economic stability at the regional level.”


Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say
Updated 12 October 2024
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Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say

CAIRO: Fintech experts believe Saudi Arabia is positioned to lead the regional landscape in decentralized finance, and also solve some challenges on the horizon.

With active support from the Saudi Central Bank, also known as SAMA, and initiatives like Vision 2030, the Kingdom is creating an ideal environment for solutions to so-called DeFi to flourish.

In an interview with Arab News, Abdulrahman Al-Dakheel, CEO of Taskheer, an online fintech platform that facilitates rotating savings and credit associations, emphasizes the government’s backing for innovative financial technologies such as blockchain and Central Bank Digital Currencies.

“Our government, through SAMA, is actively exploring and supporting innovative financial technologies. Recently, Saudi Arabia joined an international CBDC trial led by the Bank for International Settlements to enhance cross-border payments, making them more efficient and secure,” he said.

This aligns with the broader Vision 2030 initiative aimed at diversifying the economy and enhancing digital financial inclusion, the CEO added.

Abdulrahman Al-Dakheel, CEO of Taskheer. (Supplied)

Fintech Saudi, an initiative launched by SAMA, plays a pivotal role in developing the sector’s ecosystem, Al-Dakheel explained.

It provides a comprehensive support framework for fintech entrepreneurs, including access to the regulatory sandbox, resources for training, networking, and funding.

“This ensures startups can test their products in a controlled environment, meeting regulatory standards while fostering innovation,” Al-Dakheel adds.

Jamil Abuwardeh, co-founder of METKAF.com, a Web3 advising company and crypto expert, highlights the transformative potential of DeFi in Saudi Arabia.

“The financial sector here is heavily reliant on traditional intermediaries, with limited access to financial services for many citizens. DeFi can change this by providing decentralized financial services accessible to everyone, regardless of their location or financial status,” he told Arab News.

DeFi can facilitate affordable and accessible services such as lending, borrowing, and investing, and enhance cross-border transactions with instant speed and almost zero fees, he added.

Jamil Abuwardeh, co-founder of METKAF.com. (Supplied)

Stefan Kimmel, CEO of UAE crypto exchange platform M2, stated that collaboration across the board is another major catalyst for DeFi adoption.

“Over the last decade, we have seen a rapid increase in both government and private investment in DeFi frameworks, incubators, and infrastructure across the GCC (Gulf Cooperation Council),” Kimmel said.

“Whether in the UAE or Saudi Arabia, we have also learned that true progress can only be achieved by genuine collaboration between traditional finance and banking institutions, fintechs, start-ups, technology providers, and regulators,” he added.

Challenges and risks

Implementing DeFi in Saudi Arabia is not without its challenges. One of the primary hurdles is regulatory uncertainty.

Al-Dakheel underscores the need for DeFi innovators to work closely with regulators to ensure compliance and secure necessary licenses.

“Security is a significant concern. DeFi platforms are frequent targets for cyberattacks, making it imperative to have robust security protocols and continuous audits,” he said.

Abuwardeh adds that a lack of public awareness and understanding is another challenge.

“One of the major challenges is the lack of awareness and understanding of finance in general among the public. But, if they are to gain from using it, then they will use it without the need to understand it, just like people use mobile phones without understanding how the networks operate,” he said

Additionally, the absence of clear regulations may deter investors and users from engaging with DeFi.

“However, SAMA has announced its intention to regulate DeFi, which could help to overcome this challenge,” Abuwardeh added.

Kimmel emphasized the importance of balancing innovation, evolution, and regulation across various projects related to DeFi, fintech, or cryptocurrency adoption. He noted that each market must evolve at a pace that maintains this equilibrium.

Stefan Kimmel, CEO of UAE crypto exchange platform M2. (Supplied)

“Some of the greatest strength of these solutions is that they are technologically more efficient, more secure, and more accessible than their traditional counterparts – but this can be easily undermined when attempts at innovation outpace regulation, or simply if best intentions fail to meet consumer needs,” Kimmel said.

Opportunities for integration

The opportunities for integrating DeFi with traditional financial systems in Saudi Arabia are substantial, the experts further highlighted.

Traditional banks can leverage the technology to offer more efficient, transparent, and accessible financial services.

“Collaborating with traditional financial institutions can lead to hybrid models that combine the strengths of both worlds. The openness of the Saudi Central Bank to digital innovations provides a conducive environment for such integrations, potentially transforming our financial landscape,” Al-Dakheel states.

Abuwardeh, however, believes that DeFi represents a new paradigm rather than an extension of existing systems.

“Decentralized finance does not need to fit into a centralized banking system. It needs to be understood and seen as a new technology,” he said.

He compares the integration of DeFi to the shift from traditional postal systems to email, highlighting that the technology, like online correspondence, is a completely different way of delivering services in a decentralized manner.

Kimmel highlighted the impressive nature of Saudi Arabia’s DeFi evolution, noting how clearly it has been defined and well managed through Vision 2030 and the Financial Sector Development Program.

“When an entire ecosystem shares a mandate to deliver on the tangible impacts that the technologies can offer their citizens – financial inclusion, economic diversification, and world-leading technological advancement – there is no doubt that they will end up one of the top DeFi markets in the world,” Kimmel added.

“Through the work of SAMA and MCIT (Saudi Ministry of Communications and Information Technology), in particular, we’re very confident of a regulatory-innovation-security balance that will deliver the best outcomes for fintechs, financial institutions, and customers in the Kingdom alike,” he added.


Diamonds are a Saudi’s best friend as industry sparkles

Diamonds are a Saudi’s best friend as industry sparkles
Updated 12 October 2024
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Diamonds are a Saudi’s best friend as industry sparkles

Diamonds are a Saudi’s best friend as industry sparkles
  • The demand for these jewelry items has surged, thanks to the Kingdom’s burgeoning economic affluence,
  • This growth reflects not only the country’s rich heritage but also a broader shift toward luxury experiences

RIYADH: In the past decade, Saudi Arabia’s diamond market has transformed from a niche luxury segment into a shining dynamic force within the global industry.

Driven by a blend of deep-rooted cultural traditions and the Kingdom’s burgeoning economic affluence, the demand for these jewelry items has surged.

This growth reflects not only the country’s rich heritage but also a broader shift toward luxury experiences, underscoring a new era of opulence in one of the world’s most affluent markets.

“The rise in the demand for diamonds, particularly within the luxury sector, is driven by growing affluence and the desire for high-end experiences,” Anne Larsen, an expert gemologist and high jewelry adviser told Arab News.

She added: “The surge for luxury experiences and products within the luxury sector has been the biggest factor to this change, especially within the last few years.”

Anne Larsen, an expert gemologist and high jewelry adviser, addressed the factors behind the surge of diamond market in Saudi Arabia. (Supplied)

This trend has accelerated as more consumers seek unique items as a form of self-expression.

This surge in demand is mirrored by a shift in consumer behavior, with young, independent women entering the market. They are increasingly opting for mid-range jewelry, focusing on quality and design rather than large, ostentatious pieces.

Saudi Arabia has made significant strides as a key exporter in the global diamond market. In 2022, the Kingdom exported $47.2 million in diamonds, placing it as the 36th largest diamond exporter globally, according to a report by the Observatory of Economic Complexity.

The main destinations for Saudi diamonds were Singapore, the UK, and Hong Kong, among others.

The market has grown swiftly, and with ongoing developments, Saudi Arabia could potentially increase its influence within the global diamond trade.

Diamonds as an alternative investment

Diamonds have risen as a unique alternative investment, and have outperformed traditional assets such as the S&P 500.

With prices demonstrating long-term stability and impressive gains, they have become attractive to investors seeking diversification.

According to Larsen, however, in the last year colorless diamond prices fell by 20 percent, thanks to a combination of the lab grown diamond market, geopolitical tensions and change in supply.”

“I believe there are more opportunities in the color diamond category. This is mainly due to scarcity and a growing demand among consumers,” the expert said, adding: “Diamonds have always held some value and been a ‘hot’ commodity, similar to gold.”

As the diamond market matures in Saudi Arabia, many investors have shifted their focus away from gold due to favorable price dynamics​​.

Market dynamics and economic impact

Jewelry shows across the Kingdom have become essential platforms to showcase Saudi Arabia’s influence in the diamond industry.

Although the Kingdom does not have its own diamond mines, its strategic position in the global supply chain is underscored by its strong export performance and growing consumer base.

“As women are the primary buyers of gemstones in the Kingdom, the design of women’s accessories is prioritized, followed by men’s rings,” Nawwaf Al-Luhaibi, a specialist in the gemstone industry told Arab News.

Al-Luhaibi said that dealing in gemstones is becoming a prosperous business in Saudi Arabia due to the availability and quality of gems.

Many Saudis are increasingly entering the industry by creating innovative and distinctive masterpieces.

“There is a great demand from those interested, and amateurs in the field of gemstones are increasing significantly,” he said.

According to a report by the Observatory of Economic Complexity, the Kingdom’s diamond imports reached $33.3 million in 2022, making it the 42nd largest importer globally.

A deeper analysis of the future

In the past three years, a new consumer segment has emerged in the market which as an appetite for mid-range jewelry that features high-quality diamonds and exceptional craftsmanship.

“The independent young adult woman. There is a big focus on this type of client not only in Saudi Arabia,” Larsen said.

She added: “We see the change is also in America where the younger professionals are very much looking for experiences within the luxury market, but experiences that will provide them with good quality, eco-friendly solutions and often from a well-known brand.”

The demand for large diamond pieces, traditionally associated with wedding jewelry, has decreased.

“Today’s modern women put more emphasis on the quality and design to express their personality rather than show off wealth as we have known it up until now,” she said.

Larsen continued: “Due to this change the diamond market is shifting slightly toward quality over quantity, applying these requests from our consumers.”

While gold prices have surged, both gold and diamonds remain strong market categories, with gold currently showing perhaps even greater strength.

With continued investment in luxury goods and a growing appetite for unique experiences, Saudi Arabia’s diamond industry is poised for continued growth.

As Saudi Arabia continues its Vision 2030 plan, fostering diversification and sustainable growth, the diamond industry is set to play an increasingly significant role in the broader economic landscape.

By positioning diamonds as both luxury goods and viable investment assets, the Kingdom is set to further solidify its standing in the global luxury market.

According to a report by TechSci Research, an Indian management consultancy firm, Saudi Arabia’s gold and diamond jewelry market – valued at $3.43 billion in 2022 – is projected to experience strong growth, with an anticipated compound annual growth rate of 14.07 percent through 2028.

“Saudi Arabia is renowned for its opulent and intricate gold and diamond jewelry, which reflects the country’s rich cultural heritage and its status as a global hub for the gem and jewelry industry,” the report said.


Saudi minister calls for private sector investments within existing G2G mechanisms with Pakistan

Saudi minister calls for private sector investments within existing G2G mechanisms with Pakistan
Updated 11 October 2024
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Saudi minister calls for private sector investments within existing G2G mechanisms with Pakistan

Saudi minister calls for private sector investments within existing G2G mechanisms with Pakistan
  • Pakistan and Saudi businesses signed over $2 billion in agreements and memorandums of understanding this week
  • The deals have been signed during a visit to Islamabad by Saudi Investment Minister Khalid bin Abdulaziz Al-Falih

ISLAMABAD: Saudi Investment Minister Khalid bin Abdulaziz Al-Falih has said Riyadh and Islamabad needed to enable private sector investments within existing government-to-government mechanisms.

The official cited the Saudi-Pakistan Supreme Coordination Council and Saudi Arabia’s Permanent Coordination Committee for the Development of the Contracting Sector as examples of where funding could be directed.

Islamabad and Riyadh signed an agreement to establish the SPSCC in 2021 to institutionalize and fast-track decision-making and implementation on political, security, economic and cultural areas of collaboration.

The body aims to streamline bilateral cooperation between the two countries, particularly to remove hurdles in investment deals.

Saudi Arabia’s Permanent Coordination Committee for the Development of the Contracting Sector was created in 2022 to work to upgrade the construction sector and tackle project delays and hurdles. 

On Thursday, Pakistani Prime Minister Shehbaz Sharif and Al-Falih, as part of his three-day visit to Islamabad, oversaw the signing of over $2 billion in agreements and memorandums of understanding between Saudi and Pakistani businesses.

In comments televised on Pakistan’s state APP news agency on Friday, Al-Falih said Pakistan and Saudi Arabia needed to activate work under existing G2G frameworks such as the Permanent Coordination Committee, which is being led by Mohammad Bin Mazyad Al-Tuwaijri, a Saudi politician and minister-ranked adviser at the Royal Court, with Petroleum Minister Musadik Malik as his Pakistani counterpart. 

“And he (Al-Tuwaijri) has elected to place the Pakistan portfolio within the Royal Court team because he wants to personally have his finger on the pulse of how we are managing (Pakistani investments),” Al-Falih said.

“Within the scope of the G2G, his excellency Al-Tuwaijri and his team have asked MISA (Ministry of Investment for Saudi Arabia) to take the lead on everything about investment, everything about channeling private sector funding, everything about risk mitigation, everything about investment protection, everything about privatization, everything about funding. Ultimately what we need to do is enable the private sector,” he added.

The Saudi minister visited Pakistan with a delegation of over 130 businesspeople representing various sectors, including energy, mining, and agriculture, as well as tourism, construction, IT and industry.

The visit comes as Islamabad seeks closer economic cooperation with friendly countries and regional allies, with the aim to attract foreign investment and shore up its $350 billion economy, beset by a prolonged economic crisis that has drained foreign exchange reserves and weakened the national currency.

Pakistan and Saudi Arabia have been working closely in recent months to increase bilateral trade and investment, with Crown Prince Mohamed bin Salman reaffirming the Kingdom’s commitment earlier this year to expedite a $5 billion investment package for the South Asian country.


Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn

Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn
Updated 11 October 2024
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Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn

Saudi businesses eye opportunities with $2bn in deals amid Pakistan’s economic upturn
  • A large Saudi delegation of companies specializing in energy, mining and industry is currently in Pakistan
  • Delegation says economic stability, improved regulations making Pakistan attractive investment destination

ISLAMABAD: Saudi businessmen have expressed hope for successful collaborations in Pakistan, saying the country’s economic stability and improved regulatory framework had made it an attractive investment destination, following the signing of over two dozen deals between companies from both nations.

The Kingdom’s Investment Minister Khalid bin Abdulaziz Al-Falih visited Pakistan on a three-day visit with a delegation of over 130 members, including representatives from Saudi companies specializing in energy, mining, and minerals, as well as agriculture, business, tourism, industry and manpower.

The delegation on Thursday signed 27 agreements and memorandums of understanding worth more than $2 billion with several Pakistani companies.

“We saw much change in (Pakistan’s business) regulations which have become much softer,” Sultan Al-Mansour, chairman of All Care Medical Group, told Arab News, pointing out that Pakistan was gradually moving toward economic stability. “All that positive news is making Pakistan a good spot for investment.”

In June 2023, Pakistan constituted the Special Investment Facilitation Council, a hybrid civil-military forum, to facilitate foreign businesses, particularly from Gulf countries.

The Saudi investor hoped for successful collaborations, saying his company had signed two deals with Pakistani businesses developing surgical instruments and operating in the pharmaceutical industry.

“Our (Pakistani) partners will be launching a factory in Saudi Arabia in the foreseeable future,” he informed, adding the South Asian state was rich in human resources and knowledge, and constituted a big market.

Al-Mansour said he had collaborated with Hilbro, a Pakistani company that will supply surgical goods to his organization in the kingdom.

Hilbro’s sales and marketing director, Muhammad Bilal Tariq, said his company would initially supply semi-developed products before setting up a manufacturing unit of surgical goods in Saudi Arabia.

“We are planning to build the factory in Riyadh,” he told Arab News.

Pakistan Prime Minister Shehbaz Sharif meets Saudi delegation led by Investment Minister Khalid Bin Abdul Aziz Al-Falih in Islamabad on October 10, 2024. (PMO)

Mohammad Al-Madani, CEO of Classera, one of the region’s largest e-learning ed-tech companies operating in over 40 countries, said his organization had supported numerous ministries of education, training institutions and governments globally to transform education and training.

“We have started a big project called eTaleem which aims to transform education using technology across this great nation (of Pakistan),” he said.

He informed that the first phase of operations had already started by partnering with Pakistan Telecommunication Co. Ltd., adding it would use technology to transform education more rapidly and benefit the country’s youth.

“We are talking about 60 million students of Pakistan,” he said.

Al-Madani noted that human capital was a huge asset, pointing out his collaboration in Pakistan would help advance the country.

Mohammad Al-Hijji, chairman of the Saudi investment company Engineering Dimension Holding, said it was a good time to join hands with Pakistani businesses due to the government’s investment-friendly policies.

“It is the right time and we are talking about the investment in our partnership with our brethren at Pakistani renewable energy company Welt Konnect, to invest in a 500-megawatt hybrid power project,” he told Arab News.

His Pakistani partner, Habeel Ahmed Khan, termed the collaboration a “great honor.”

“We signed an MoU with our brothers from ED Holding for the 500-megawatt project that we have been developing in the south of Pakistan, almost 45 minutes east of Karachi in the wind corridor of Gharo,” he said.

Sharing details, he said the project would produce about 168 MW of wind power and 332 MW of solar power.

“It’s going to be one of Pakistan’s first hybrid power projects, which will supply cheap electricity to the national grid,” Khan added.

Ghassan Amodi, CEO of Asyad Holding Group, which is acquiring Shell operations in Pakistan, said the move was part of their strategic plan to expand regionally.

“Our association with Shell is a longstanding relationship, and we look forward to further developing this beyond the borders of Saudi Arabia and now Pakistan. We are also looking for other opportunities,” he said.

Speaking to Arab News, Pakistan’s Petroleum Minister Musadik Malik said over 130 representatives of around 50 Saudi companies were part of the delegation, adding that many projects and collaborations had been finalized in the energy field during the visit.

“Two Saudi companies have flown into Pakistan, and they will be talking about the upgradation of an old refinery, which is about a billion-and-a-half-dollar project,” he said while informing that Pakistan also expected to finish the study on the greenfield refinery project by December.

Pakistan’s Petroleum Minister Musadik Malik speaks during the inauguration of Pak-Saudi Business Forum 2024 in Islamabad on October 10, 2024. (PID)

“Then the conversation will begin to move forward on the $7-10 billion project,” he continued.

Malik informed that once the Saudi delegation departs, the government would follow up on an almost weekly or fortnightly basis.

“It will be to see where those contracts are, how those relationships are evolving and if there’s any government-related trouble that we need to troubleshoot and remove,” he said.


Global Logistics Forum announces key partners on eve of inaugural event

Global Logistics Forum announces key partners on eve of inaugural event
Updated 11 October 2024
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Global Logistics Forum announces key partners on eve of inaugural event

Global Logistics Forum announces key partners on eve of inaugural event

RIYADH: Shipping firm MAERSK, aviation conglomerate Saudia Group and delivery company Aramex have been confirmed as key partners of the Global Logistics Forum, set to take place in Riyadh from Oct. 12-14.

The event, hosted by Saudi Arabia’s Ministry of Transport and Logistic Services, will serve as a platform for uniting partners to enhance supply chain efficiency, resilience, sustainability, and profitability, according to a press release.

The inaugural forum will host 10,000 attendees and see more than 120 speakers, including world leaders, ministers, business chiefs, and experts in the logistics sector contributing to the event.

The event comes as Saudi Arabia places an increased focus on its logistics industry, in line with the Vision 2030 economic diversification strategy.

The sector is surging, with a 76 percent increase in new businesses registered in the second quarter of 2024, making logistics the fastest-growing sphere in the Kingdom. 

Rumaih bin Muhammad Al-Rumaih, the Kingdom’s vice minister of Transport and Logistic Services, said the forum marks a key waypoint on the journey of the global industry. 

“From the food we eat, to the gifts we give, and to everything in between, our modern world depends on the global logistics network. 

“At the Global Logistics Forum, we will set the future direction for this most critical industry.

“We are proud to share the many global and regional logistics leaders who are partnering with us for the inaugural GLF, recognizing the importance of this moment to share the future map of global logistics.”

Ibrahim Al-Omar, director general of Saudia Group, said that being a Presenting Partner for the event in Riyadh is testament to his company’s commitment to Saudi Vision 2030. 

“This forum is a pivotal moment for Saudia Group to engage with global leaders and contribute to the Kingdom's ambition of becoming a leading logistics hub. Our participation underscores our dedication to fostering innovation and collaboration in the logistics sector," he added.

Group CEO of Aramex, Othman Aljeda, said that the company “was thrilled to embark on this collaborative journey with the Global Logistics Forum.”

He added: “Earlier this year, Aramex opened a new regional hub in Riyadh, and our partnership at GLF will ensure that we are contributing our expertise and supporting Saudi Arabia's Vision 2030 by fostering greater collaboration, operational excellence, and sustainable growth in the region's logistics sector."

The Global Logistics Forum will also serve as a “launching pad” for MoUs between industry leaders in global logistics, formalizing a more connected sector, and in turn ensuring a more resilient and efficient network of global connectivity, according to a release.