JEDDAH: Few would dispute that Saudi Arabia’s economy has witnessed some tough times.
But as this week’s Top CEO Conference will hear, there are some golden opportunities amid the gloom that followed the oil-price crash.
Some of the burning issues facing corporations today will be discussed at the conference, which is being held for the first time in Saudi Arabia after previous editions in Dubai.
Held under the theme “Adapting to Disruption: New Roles, New Realities,” the event is organized by Dubai-based Trends magazine, an international publication on Arab affairs, in association with Insead business school.
Julien Hawari, co-CEO of Mediaquest Corp, the publisher of Trends, said that it is significant that this is the first time the event will be held in the Kingdom.
The country, grappling with significant economic challenges, last year laid out the ambitious Vision 2030 reform plan, which aims to wean it off its addiction to oil.
“With great challenges come great opportunities,” Hawari told Arab News.
“Hosting the Top CEO Conference and Awards in Saudi Arabia made sense, as Saudi (Arabia) is the giant economy of the region and it is fully taking on its role (as the) engine of growth for the region.
“Saudi Arabia is preparing itself (for) a transformation that will benefit society and create more jobs for our children. The issues are complex and the Top CEO Conference addresses many of those.”
The diversification of the economy is the underlying theme of Saudi Arabia’s reform plan — something that is common to strategies pursued by some other regional countries.
“Moving away from an oil economy has become a necessity for the entire GCC,” Hawari said.
“We believe that the Arab world has a lot to offer... (Members of) our new generation are bringing with them expertise and experience from the outside and a deep knowledge on how to take forward our societies.”
Key factors in this regional change include corporate governance and transparency, ensuring fair competition, and creating jobs — all issues that are set to be addressed at the Top CEO event.
The roller coaster ride in oil prices is not the only factor impacting the Arabian Gulf. New technology is also turning old business models upside down.
“One of the key issues Top CEO is focusing on this year is disruption,” said Hawari. “The full impact of the technology revolution is hitting the region. This makes the life of business leaders extremely challenging, as they need to have their eyes on 10 different things to take forward their organizations.
“A new norm is shaping and changing many status quos in regional business.”
The Top CEO event is set to be held on April 10-11 at King Abdullah Economic City (KAEC) near Jeddah.
In its third edition in 2017, the accompanying awards will honor the top 100 chief executive officers after evaluating their companies’ listings on the Gulf Cooperation Council’s (GCC) stock exchanges.
The Saudi economy: ‘With great challenges come great opportunities’
The Saudi economy: ‘With great challenges come great opportunities’
Saudi Arabia’s NDMC raises $13bn for infrastructure projects
RIYADH: Saudi Arabia raised $13 billion through a seven-year syndicated loan as the Kingdom steps up funding for infrastructure projects spanning power, water and public utilities.
The financing was arranged by the National Debt Management Center as part of the government’s medium-term borrowing strategy, which aims to diversify funding sources and secure financing at competitive costs, the agency said in a statement.
The transaction supports Saudi Arabia’s broader push to upgrade infrastructure under its Vision 2030 economic transformation program, as the government accelerates investment in utilities and development projects alongside private-sector participation.
“This transaction aims to leverage market opportunities to execute alternative government financing activities that contribute to economic growth, including the financing of development and infrastructure projects aligned with Saudi Vision 2030,” said NDMC.
NDMC was established in 2015 within the Ministry of Finance as the Debt Management Office before being restructured into its current form, with a mandate to manage public debt and meet the government’s financing needs across short-, medium- and long-term horizons.
The syndicated loan follows a series of recent debt market transactions. In December, the center raised SR7.01 billion ($1.87 billion) through a domestic sukuk issuance split across five tranches, with the first one valued at SR1.23 billion set to mature in 2027.
The second tranche amounted to SR335 million, maturing in 2029.
The third tranche was valued at SR1.180 billion maturing in 2032, and the fourth tranche was SR1.692 billion set to expire in 2036.
The fifth tranche was worth SR2.573 billion, maturing in 2039.
In September, NDMC completed the issuance of a $5.5 billion (SR20.63 billion) international sukuk under the Kingdom’s Global Trust Certificate Issuance Program.
The offering — the country’s first international sukuk based on an Ijarah structure — was issued in two tranches. A five-year sukuk maturing in 2030 raised $2.25 billion (SR8.44 billion), while a 10-year tranche maturing in 2035 secured $3.25 billion (SR12.19 billion, NDMC said at the time.
The center added that the issuance aligns with its strategy to diversify the investor base and meet Saudi Arabia’s financing requirements through international debt capital markets in an efficient and effective manner.
