JEDDAH, 4 July 2005 — Young Saudi graduates and business aspirants are more inclined to explore the prospects the current economic scenario holds for them.
In fact, the present business and investment climate is the best ever, thanks to rising oil prices and the consequent buoyancy in the economy.
“The Saudi economy has proved its strength and ability to keep pace with the most advanced economies of the world,” according to a young Saudi businessman. “The current economic environment is the best ever to attract both domestic and overseas investment,” Maher A.S. Bondakji, a member of the Jeddah Chamber of Commerce & Industry, told Arab News.
The buoyancy in the economy is not merely due to the increasing flow of oil revenue, but also largely due to the progressive policies of the Kingdom, he says. The reasons include the Kingdom’s full commitment to increase private sector participation in economic growth. Privatization is a key element of the Kingdom’s economic liberalization and a host of sectors are now available to the private sector. Telecommunications, electricity, airlines, postal services, railways, port services and water utilities are some of the potential areas for investment and there has been considerable awareness among young Saudis about the existing and emerging economic environment.
The Kingdom is a founding member of Convention on Arbitration and is in the process of obtaining World Trade Organization (WTO) membership. The Kingdom is already characterized by fierce competition in various fields. The WTO membership will open up the market further for foreign investors and expand the scope of Saudi exports. This will further promote the quality of goods and services, all in the interest of the consumer.
What is more, the Kingdom’s privatization and economic diversification efforts have gained momentum since the creation of the Supreme Economic Council (SEC), which is aimed to speed up economic reforms aimed at opening up Saudi markets and ensure stability for investors.
Youth means potential and the Kingdom has plenty of it. Demographic reality of educated and trained youth coupled with the Kingdom’s emphasis on developing human resources offer distinct possibilities for foreign investors. Joint ventures with the Kingdom and private sector have groomed a generation of managers and technocrats. Today’s situation offers tremendous opportunities for training and development, which is a growing area for investors.
There has been a rise in the number of young Saudi professionals graduating from the Kingdom’s universities. The Kingdom has created the Human Resources Fund for job skill training for Saudi youth. Besides, it has established a sound regulatory and financial infrastructure based on financial standards and payment systems that are on par in major industrial countries. This has resulted in a strong banking sector. “Coupled with this positive situation, simplified official procedures and support from banking and financial institutions have greatly contributed toward raising the aspirations of young Saudis in particular,” he said.
“However, small and medium enterprises (SMEs) are looking forward to the creation of a ‘super national organization’ to lead, encourage and support them,” Bondakji said, adding that his seven-year business experience as president of Jeddah-based Al Marabie Co. Ltd. shows that going through routine procedures at official levels could be a major challenge for young aspirants, especially when starting a new commercial business. “Some commercial banks have also shown their apathy toward extending financial support for SMEs that constitute 90 percent of businesses,” he says.
What aspiring young Saudi businessmen need to focus on is to establish and improve their business dealings and keep an eye on the market needs. Real estate is one of the most lucrative and promising sectors and young aspirants can as well consider establishing ventures in such fields that continue to boom.
“There is nothing like being self-employed and doing your own business as opportunities are immense. Young aspirants should consider business as their career, because it is more rewarding than looking for job opportunities. “Make a small beginning in any business that you wish to launch and if it is managed properly it will grow on its own into a big business,” he says.
There are always ups and downs in a business and young businessmen need to realize this. Business fluctuations could be due to many factors including those related to planning, investment, management and even execution. There could also be losses due to the abrupt end of contracts by overseas partners. Giving his own experience in which he lost more than SR7.5 million, he said an overseas company canceled an ongoing contract with him, much after he had won a government tender and introduced the products of that company in the Saudi market. “The JCCI did its best to find a settlement, failing which the matter was referred to the court of grievances,” said Bondakji who is involved in contracting and supply of electrical materials and water treatment equipments.
Nevertheless, the aspirations of young Saudis are “great and promising,” against the background of the current economic scenario, he emphasized.
