Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister

Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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Saudi Minister of Tourism Ahmed Al-Khateeb was speaking during a ceremony to mark the 50th anniversary of SDF’s establishment in Riyadh. SPA
Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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The Saudi Fund for Development held a ceremony in Riyadh to mark the 50th anniversary of its establishment. SPA
Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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The Saudi Fund for Development held a ceremony in Riyadh to mark the 50th anniversary of its establishment. SPA
Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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The Saudi Fund for Development held a ceremony in Riyadh to mark the 50th anniversary of its establishment. SPA
Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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The Saudi Fund for Development held a ceremony in Riyadh to mark the 50th anniversary of its establishment. SPA
Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
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The Saudi Fund for Development held a ceremony in Riyadh to mark the 50th anniversary of its establishment. SPA
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Updated 02 September 2024
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Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister

Saudi Fund for Development finances over $20bn global projects in 50 years: Tourism minister
  • SFD financed 77 health projects that resulted in 325 medical facilities in 45 countries
  • The fund also financed 230 projects in 71 countries in the transportation sector, including airports, roads, and ports

RIYADH: Exceeding a total cost of $20 billion, the Saudi Fund for Development has financed 800 projects in more than 100 countries over the last 50 years, according to a top official. 

Saudi Minister of Tourism Ahmed Al-Khateeb revealed that the institution has financed 77 health projects that resulted in 325 medical facilities in 45 countries, with a capacity of more than 25,000 beds. Most notable was King Faisal Hospital in Rwanda, which carried out the first kidney transplant in the East African nation.  

He was speaking during a ceremony held by the fund to mark the 50th anniversary of its establishment in the capital, Riyadh.  

Al-Khateeb, who is also the chairman of the fund’s board of directors, said SFD funded 84 education projects to establish 600 academic facilities benefiting more than 1 million students, according to a statement.  

This falls in line with the fund’s vision to be a comprehensive strategic partner that advances the sustainable economic development of the world’s least developed countries. 

It also aligns with its mission to empower the stable economic development of countries in need by leveraging the Kingdom’s resources to provide financial, technical, and human support to meet the needs of its partners.  

During his speech, the minister said the fund also financed 230 projects in 71 countries in the transportation sector, including airports, roads, and ports.  

These initiatives include the Velana International Airport in the Maldives, initially established in 1978, along with its expansion project to boost capacity from 2 million to 8 million passengers, and King Fahd Road in Djibouti. Additionally, the fund has financed 230 oil projects in more than 70 countries.

On the sidelines of the 50th-anniversary celebration, the fund’s CEO, Sultan Al-Marshad, signed a development agreement with Fatima Yasmin, the vice president for sectors at the Asian Development Bank, to help finance a project to develop renewable energy in the Solomon Islands. 

The project aims to improve the infrastructure for renewable energy, contribute to reducing dependence on fossil fuels and traditional energy, and enhance sustainable development.

Launched in 1974, the fund has provided backing for sustainable development projects and initiatives across Africa, Asia, and the Pacific, as well as Latin America, the Caribbean, and Eastern Europe. 

The entity’s scope of operations encompasses the most underdeveloped and impoverished communities globally, promoting international collaboration and unity to address the obstacles and hardships encountered in advancing development.


Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16
Updated 16 min 54 sec ago
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Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16

Saudi Arabia leads global efforts at 79th UNGA, paving the way for action at COP16
  • Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues
  • Saudi Arabia took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions

RIYADH: Global discussions on environmental challenges took center stage at the 79th UN General Assembly, with Saudi Arabia’s Ministry of Environment, Water, and Agriculture spearheading talks. 

In preparation for the upcoming UNCCD COP16, the Kingdom’s incoming COP16 Presidency initiated a series of events to sound the international alarm on these pressing issues, primarily focusing on addressing the UNCCD target of restoring 1.5 billion hectares of land by 2030. 

The Saudi Deputy Minister of Environment, Water, and Agriculture and advisor to the incoming COP16 President, Osama Faqeeha, emphasized in an interview with Arab News, the urgency of this mission: “At the forefront of our actions in New York has been ensuring we raise international awareness of the urgency with which the world must tackle land degradation, drought and desertification.”

Saudi Arabia’s efforts at the UNGA were not limited to raising awareness. The Kingdom took a proactive approach in hosting and participating in a wide range of events aimed at finding long-term solutions. 

A key event, titled the “Road to Riyadh,” brought together critical stakeholders from the environmental policy, governmental, scientific, and NGO ecosystems. 
 
This meeting laid the foundation for discussions that will continue through COP16, focusing on creating an actionable plan to address various environmental concerns. 

Faqeeha said: “At the UN General Assembly in New York, we have been hosting and participating in events designed to find lasting solutions to land degradation, desertification, and drought.”

He added: “We have been, and will continue to, consult and engage with a wide range of experts, decision-makers, and environmental stakeholders in the buildup to COP16 in Riyadh, to raise awareness around policy initiatives and land restoration funding mechanisms, with the ultimate goal of delivering a COP of action in December.”

A significant outcome of Saudi Arabia’s participation at the UNGA was the launch of the groundbreaking “Rio Trio” initiative, which Faqeeha described as a critical dialogue among the three major environmental conventions — the UNCCD, which focuses on land degradation, UNFCCC, which tackles climate change, and CBD which is centered on biodiversity. 

The Rio Trio event, held on the sidelines of the UNGA, brought together decision-makers from Azerbaijan, the incoming presidency of COP29; Colombia, the incoming presidency of CBD COP16; and Saudi Arabia, the incoming presidency of COP16.

The initiative’s goal is to find unified solutions that address the interconnected challenges of land degradation, climate change, and biodiversity loss. 

“The end of 2024 stands to be an important period for our planet,” Faqeeha said, describing it as “an opportunity to help deliver decisive change with all three COPs taking place over a short period of time.”

Saudi Arabia’s commitment to multilateral cooperation is not limited to the UNGA. The Kingdom has also played a leading role in international environmental initiatives, such as the G20 Global Land Initiative, which was launched at the G20 summit in Riyadh in 2020. 

The initiative aims to halve degraded land by 2040, a target that aligns with Saudi Arabia’s broader mission to foster global collaboration on land restoration. 

Faqeeha highlighted the significance of this initiative, stating: “It was in fact at the G20 in Riyadh in 2020 when the group took the historic step of launching the Global Land Initiative, pledging to halve degraded land by 2040.”

He also highlighted that Saudi Arabia will continue to promote this goal at upcoming international engagements, including the G20 summit in Brazil.

As the Kingdom prepares for COP16, the country is actively working to rally the international community to deliver enhanced commitments on land restoration and prevention of further degradation. 

The COP16 conference, scheduled to take place in Riyadh, is expected to attract up to 20,000 participants, making it the largest UNCCD COP to date. 

“We are expecting to attract up to 20,000 people, making COP16 the largest UNCCD COP to date,” Faqeeha said. The conference will also feature the first-ever Green Zone, a space where public and private sectors, NGOs, the scientific community, and financial institutions can collaborate on finding and funding sustainable solutions to land degradation. 

Faqeeha added: “We are doing this to amplify the voices of the 3.2 billion people impacted by land degradation, drought, and desertification around the world.”
 
The Kingdom’s leadership at COP16 is built on a strong foundation of international cooperation and domestic environmental stewardship. 

Saudi Arabia’s Vision 2030 roadmap, which emphasizes economic diversification alongside environmental sustainability, is a driving force behind its ambitious land restoration goals.

“Sustainability is deeply rooted in the Kingdom’s development roadmap of Vision 2030,” Faqeeha highlighted. He explained that Saudi Arabia does not view economic development and environmental conservation as conflicting forces but as interlinked.

According to Faqeeha, the economic benefits of land restoration are significant, with the potential to generate $1.4 trillion annually through increased crop production from the restoration of degraded land.

He warned, however, that the cost of inaction is even higher, citing UN estimates that 90 percent of the Earth’s soil is at risk of degradation by 2050, which could result in far-reaching economic and social consequences.

Saudi Arabia’s leadership in this area extends beyond its borders. The Kingdom has committed to restoring 200 million hectares of degraded land domestically and internationally, reflecting its deep-rooted connection to land stewardship. 

Faqeeha stressed the importance of balancing economic growth with environmental protection, particularly in light of the nation’s responsibility as a G20 nation. “The Kingdom is conscious of its responsibility to lead the local, regional, and international climate action efforts,” he said.

In fostering global collaboration at COP16, Saudi Arabia encourages other countries to adopt sustainable land management practices and contribute to the UNCCD’s goals. 

“We need a transformational raising of awareness,” Faqeeha said, stressing that land restoration is not just an environmental necessity but an economic opportunity. 

He explained that the return could be as high as $30 for every dollar invested in restoring degraded land. 

To achieve this, Saudi Arabia is actively working to unlock funding mechanisms, including those available via multilateral development banks, to help drive global investment in sustainable land management.

Businesses will also play a critical role in addressing land degradation, and the Kingdom is committed to encouraging the private sector to take more active steps in this regard. 

“The unfortunate reality is businesses have often been driven by short-term profits, overlooking the long-term consequences of their actions,” Faqeeha observed. 

He stressed that COP16 will focus on shifting this mindset, encouraging businesses to recognize the long-term value of sustainable practices. 

“Restoring ecosystems and soil biodiversity is among the most effective weapons against weather extremes,” he underlined, adding that businesses stand to benefit from greater economic security by investing in regenerative land use.

In addition to engaging the private sector, Saudi Arabia is committed to involving the youth in the global land restoration movement. Faqeeha pointed out that over 1 billion young people in developing countries depend on land and natural resources for their livelihoods. 

He stated: “Global efforts on land restoration can succeed only if we involve the youth.” At COP16, the Kingdom will provide a platform for young people to participate in discussions and advocate for sustainable land management practices. 

“UNCCD recognizes youth as key changemakers and their social and economic integration and empowerment are critical for global land actions,” Faqeeha said.

He added: “That is why the UNCCD is actively promoting youth engagement and placing it at the forefront of global efforts to restore land and boost drought resilience.”

Faqeeha highlighted that today’s young generation will inherit the responsibility of desertification and land degradation, climate change, biodiversity loss, and growing socioeconomic inequality. 

Gender equality is another key focus of COP16. Saudi Arabia will host a Gender Forum in the Green Zone to ensure that women’s leadership and participation in land restoration efforts are prioritized. 

“Gender equality is critical for the global effort to prevent, reduce, and reverse land degradation,” Faqeeha emphasized.

The forum will serve as a platform to address gender inequality and promote the role of women, particularly those most affected by land degradation, in shaping sustainable solutions.

As Saudi Arabia looks ahead to COP16, it remains steadfast in its mission to foster global collaboration, drive tangible results, and create a lasting legacy in the fight against land degradation, desertification, and drought. 

“At the UN General Assembly, we have sought to galvanize governments, businesses, NGOs and experts- to name just a few- to arrive in Riyadh ready to deliver the robust multilateral action our planet desperately needs,” Faqeeha concluded. 

By leveraging the momentum built at the 79th UN General Assembly and continuing to champion multilateral solutions, the Kingdom is set to make COP16 a transformative moment for both people and the planet.


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 13 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 13 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.