Qassim region sees 14.5% growth in commercial records
Qassim region sees 14.5% growth in commercial records /node/2570689/business-economy
Qassim region sees 14.5% growth in commercial records
Saudi Arabia’s Commerce Minister Majid Al-Qasabi highlighted that the total number of commercial records in the region reached 77,900 by the end of August, up from 68,000 at the end of 2018. SPA
Qassim region sees 14.5% growth in commercial records
Updated 09 September 2024
MANAL AL-BARAKATI
RIYADH: Commercial records in Saudi Arabia’s Qassim region have surged by 14.5 percent over the past six years, reflecting a vibrant increase in economic activity, according to a top official.
Saudi Arabia’s Commerce Minister Majid Al-Qasabi highlighted that the total number of commercial records in the region reached 77,900 by the end of August, up from 68,000 at the end of 2018. This growth, reported by the Saudi Press Agency, underscores the region’s expanding business environment and the government's commitment to enhancing commercial sectors.
The announcement was made during a recent meeting at the Qassim Chamber, attended by ministers, business leaders, and entrepreneurs. The gathering addressed various challenges and opportunities facing the local business community and is part of the Ministry of Commerce’s broader initiative to engage with stakeholders and support key sector development across the Kingdom.
Qassim’s economic progress aligns with Saudi Arabia’s Vision 2030 objectives, which aim to diversify the national economy and reduce reliance on oil revenues. The commercial sector, especially in regions like Qassim, plays a crucial role in this transformation. Significant advances have been observed across various industries, with sectors such as light transport, logistics, and petrochemical construction showing growth rates between 67 percent and 96 percent.
The Qassim region is also prominent in Saudi Arabia’s agricultural sector, particularly in date production. Al-Qasabi emphasized the strategic importance of the Buraidah Dates Festival, noting that the region produces one-third of the country’s dates. He advocated for the festival's institutionalization and enhanced marketing, stressing the need for research and development in the date industry and stronger collaboration between farmers, marketers, and the National Center for Palms and Dates.
Al-Qasabi discussed the government’s recent reforms aimed at empowering Chambers of Commerce. The new system for chambers is designed to improve governance and create a more attractive investment environment, allowing sectors with comparative advantages to thrive.
The minister also provided an update on the Ministry of Commerce’s efforts to improve the business landscape in Saudi Arabia. Over 110 regulations have been reviewed and updated, including those on e-commerce, franchises, and company law. The National Competitiveness Center has completed 820 reforms in collaboration with 60 government entities and the private sector to enhance the business environment.
In support of small and medium enterprises, Al-Qasabi highlighted the critical role of the General Authority for SMEs, which focuses on financing, entrepreneurship, innovation, and market access. He encouraged SMEs and entrepreneurs to seize upcoming opportunities, such as the Biban 24 Forum, scheduled to be held in Riyadh in November.
Saudi Arabia’s adoption of fintech makes it an ideal DeFi hub, experts say
Updated 12 October 2024
Nour El-Shaeri
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
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
Updated 12 October 2024
Nadin Hassan
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.
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.
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
Updated 11 October 2024
Arab News
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.
