Jeddah music center promotes Kingdom’s nascent entertainment sector

Musicians performing at Jeddah's Makan Music Center. (Supplied)
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Updated 03 December 2021

Jeddah music center promotes Kingdom’s nascent entertainment sector

  • Music has become not just an integral part of daily life, but a dynamic new economic sector
  • Jeddah-based Makan Music Center has become a focal point of the Kingdom’s burgeoning music scene.

JEDDAH: Saudi Arabia’s music industry has seen rapid growth from a standing start, largely due to the Vision 2030 reform plan, which positions entertainment front and center in the diversification of the Kingdom’s economy away from oil and its derivatives.

The General Entertainment Authority was established in 2016 with a mission to “provide recreational opportunities for all segments of society...to enrich lives and to spread joy.” It is doing just that with spectacular mega-events like Riyadh Season.

And with the relaxation of social norms in the Kingdom, music has become not just an integral part of daily life, but a dynamic new economic sector.

Numerous KSA-based companies are getting in on the act, via a spectrum of platforms: TV, Internet, social media, streaming services such as Lebanon-based Anghami (focused on Middle East-origin music) and live performance.

Saudi promoters such as Benchmark and AK Events have brought major international stars to local audiences. Mariah Carey, the Black Eyed Peas and Enrique Iglesias have all performed in the Kingdom, prior to the COVID-19 epidemic putting a temporary halt on public gatherings.

Jeddah-based Makan Music Center, which offers a full range of musical services, is a focal point of the Kingdom’s burgeoning music scene.

The center’s General Manager Shaher Karkashan, 32, founded the center with his musician colleagues in 2018.

He told Arab News: “Our goal was to create a hub for musicians. And our vision is to enable an individual to go the full circle with us — from learning an instrument to recording original material and then presenting his or her music to a live audience.

“That’s the goal, for both boys and girls — and surprisingly, over 60 percent of our clients are female.”

Such activities are crucial for the incubation of Saudi musical performers in order to supply high quality content to an industry hungry for new talent.

The center was initially launched with just two rooms — a recording studio and a jamming and learning space.

Three years on, it occupies an entire 400-square meter building divided into an eight-room teaching area, a 250-capacity auditorium and a recording studio.

Clients can learn a variety of instruments, including guitar, violin and drums, along with vocals. The typical age of musicians is 15 to 40, although some are aged 50 and above.

The center also provides equipment, talent and management services for indoor and outdoor corporate events, staged in malls and other public spaces, attracting audiences of up to 2,000.

Karkashan said that as the center has grown, it has become a more professional outfit with a robust business model and several income streams: tuition, ticketed concerts, artist management, equipment hire and corporate events.

He said: “We started with five employees — and now we are 20 and growing. We have six departments, including human resources, accounting and sales, and we’re hiring more people.”

While the KSA’s music industry – specifically live performance — was negatively impacted by the COVID-19 pandemic, the future outlook appears positive. With the Kingdom’s health situation returning to normal, forthcoming live events include the appearance of Justin Bieber, A$AP Rocky and Jason Derulo, who are set to headline post-race concerts at this weekend’s inaugural Formula 1 Grand Prix in Jeddah. Industry players are hoping that this progress will not be impeded by the omicron COVID-19 variant.

Health conditions permitting, Karkashan and his associates are also planning a large new year concert as part of the port city’s Jeddah Season festivities.
Such activities were unheard of in the Kingdom even a few years ago, and Karkashan noted that the changes stemmed from the Vision 2030 reforms.

“Saudi Arabia had some major artists back in the 1980s, after which there was a huge 30-year gap,” he added.

“Then we started seeing a few Saudis performing on TV shows like ‘Star Academy’ and ‘Arab’s Got Talent’ — but they went on to work in Kuwait or the Emirates, because there was no opportunity for them to develop in Saudi Arabia.

“Now things have changed. The Ministry of Culture is involved, there’s the Entertainment Authority, even a Music Authority, and they are all helping to develop the KSA’s music industry.

“I think potentially big names will soon emerge in Saudi Arabia. They are under development now, and we will probably see them go mainstream in around 2023.”

Some of Makan’s clients have come together to form bands — one called Robin and another Bad Reception — and the center has also allowed more established acts, such as death metal outfit Wasted Land, to record and perform their own material.

Karkashan said that he is optimistic about the future of Makan as well as Saudi Arabia’s music sector as a whole.

He pointed out that he was focused on three main areas of growth: artist management, staging bigger outdoor events and opening new centers in Riyadh and other cities in the Kingdom.

“Five years ago, it was all very different. But now aspiring musicians have our full support as well as support from the media and the government.

“And social media really opens up huge possibilities. Many young people are passionate about learning music or starting a band or a career in music, and this is definitely the right time to do it.”

The Saudi music industry is slated to see exponential growth over the next decade and the Makan Music Center will surely play a part in that, both artistically and commercially.

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World Economic Forum to return in-person as it aims to shed light on ‘History at a Turning Point’

Updated 18 May 2022

World Economic Forum to return in-person as it aims to shed light on ‘History at a Turning Point’

  • This year’s meeting will bring together about 2,500 leaders and experts from around the world, including more than 50 heads of state and government, more than 1,250 leaders from the private sector and nearly 100 Global Innovators and Technology Pioneers

LONDON: The World Economic Forum announced on Wednesday that the theme of its annual meeting for 2022 will be ‘History at a Turning Point: Government Policies and Business Strategies’ in its return to an in-person conference since the pandemic forced it to go virtual since 2020.

“The Annual Meeting is the first summit that brings global leaders together in this new situation characterized by an emerging multipolar world as a result of the pandemic and war,” said Klaus Schwab, the WEF’s founder and executive chairman.

This year’s meeting — which is happening in the spring rather than its usual January slot — returns after a two-year hiatus and will bring together about 2,500 leaders and experts from around the world, including more than 50 heads of state and government, more than 1,250 leaders from the private sector and nearly 100 Global Innovators and Technology Pioneers.

“The fact that nearly 2,500 leaders from politics, business, civil society and media come together in person demonstrates the need for a trusted, informal and action-oriented global platform to confront the issues in a crisis-driven world,” Schwab said.

Civil society will be represented by more than 200 leaders from NGOs, social entrepreneurs, academia, labour organizations, faith-based and religious groups, and at least 400 media leaders and reporting press. The Annual Meeting will also bring together younger generations, with 100 members of the Forum’s Global Shaper and Young Global Leader communities participating.

Against a backdrop of the global pandemic, the Russian invasion of Ukraine and geo-economic challenges, the meeting convenes at a strategic point where public figures and global leaders will meet in person to reconnect, exchange insights, gain fresh perspectives and advance solutions.

Topics that will be discussed at the annual meeting range from COVID-19 and climate change to education, technology and energy governance.

These include the Reskilling Revolution, an initiative to provide 1 billion people with better education, skills and jobs by 2030; an initiative on universal environmental, social and governance (ESG) metrics and disclosures to measure stakeholder capitalism; and the One Trillion Trees initiative, 1t.org, to protect our trees and forests and restore the planet’s ecosystems.

The programme will have six thematic pillars, including fostering global and regional cooperation; securing the economic recovery and shaping a new era of growth; building healthy and equitable societies; safeguarding climate, food and nature; driving industry transformation, and finally; harnessing the power of the Fourth Industrial Revolution.


Bank of England official warns of tough times for crypto

Updated 17 May 2022

Bank of England official warns of tough times for crypto

  • G7 to discuss crypto-asset regulation, says French central banker

RIYADH: Investors in crypto currencies should expect more difficult times ahead as tightening financial conditions around the world stoke appetite for safer assets, Bank of England Deputy Gov. Jon Cunliffe said on Tuesday.

Asked at a Wall Street Journal conference if rising interest rates would ramp up pressure on crypto currencies, Cunliffe said: “Yes, I think as this process continues, as (quantitative tightening) starts in the US ... I think we’ll see a move out of risky assets.” Cunliffe added that the conflict in Ukraine also had the potential to cause a renewed flight to safer assets.

Bitcoin, the world’s largest cryptocurrency, fell as low as $25,401 on Thursday, its lowest since Dec. 2020. It hit a record high of $69,000 in November. 

However, it traded higher on Tuesday, up 0.2 percent to $30,418 as of 08:52 a.m. Riyadh time.

Ether, the second most traded cryptocurrency, was priced at $2,077, up 0.32 percent, according to data from CoinDesk.

G7 meeting

The regulation of crypto-assets is likely to be discussed at a meeting of Group of Seven finance chiefs this week in Germany, French central bank head Francois Villeroy de Galhau said on Tuesday.

“What happened in the recent past is a wake-up call for the urgent need for global regulation,” Villeroy told an emerging markets conference in Paris, referring to recent turbulence in crypto-asset markets.

“Europe paved the way with MICA (regulatory framework for crypto-assets), we will probably ... discuss these issues among many others at the G7 meeting in Germany this week,” he added.

Grayscale to launch digital assets

Grayscale will list an exchange-traded fund in Europe made up of companies representing the “Future of Finance,” the world’s largest cryptocurrency asset manager said in a statement on Monday. 

The ETF, tracking the “Bloomberg Grayscale Future of Finance Index,” will be listed on the London Stock Exchange, Italy’s Borsa Italiana and Germany’s Deutsche Börse Xetra and begin trading on May 17. It is the first time that US-based Grayscale has listed a fund in Europe.

The index contains a mixture of companies involved in digital currencies including asset managers, exchanges, brokers, technology firms, as well as firms directly involved in cryptocurrency mining. “For us, the digital economy is primarily being driven through the proliferation of digital assets,” said Grayscale CEO Michael Sonnenshein.

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NEOM ‘fully under Saudi sovereignty, regulations,’ says government official refuting inaccurate media reports

Updated 16 May 2022

NEOM ‘fully under Saudi sovereignty, regulations,’ says government official refuting inaccurate media reports

RIYADH: NEOM, a project fully owned by Saudi Public Investment Fund, is “completely under Saudi Arabia’s sovereignty and regulations,” the Saudi Press Agency reported early Monday, citing an official source.

The clarification came after NEOM's tourism sector head Andrew McEvoy made comments to media during his participation at Arabian Travel Market in Dubai about demographic status within the megacity, suggesting that residents within NEOM will have a special status, distinguishing them from others.


Read More: NEOM seeks to regenerate the area, offer ‘guilt-free’ vacations


NEOM City will have some special regulations related to investment reflecting its strategy as part of the Kingdom's Vision 2030, to make 'the city of the future' an effective driver in supporting the Saudi economy and the prosperity of the region, according to the company.

Economic legislation specific to the project area will be developed to achieve the best concepts of governance of economic zones in the world, making NEOM one of the most important attractions globally, SPA quoted the source as saying.

The point was underlined by Manar Al-Munif, chief investment officer of NEOM, while speaking at the Saudi-Thai Economic Forum in Riyadh on May 16.

She said the $500-billion future city will have its own regulations based on best practices from around the world that will allow businesses to grow and develop.

Al-Munif revealed that NEOM is the largest Environmental, Social, and Governance initiative in the world, and added that the project will create several investment opportunities for businesses. 

“We have identified a number of investment opportunities across 16 sectors in NEOM. These sectors represent the future, and we have outlined 150 investment initiatives. Each of these initiatives is going to have hundreds of opportunities regardless if it is a direct investment, joint venture, or merging,” Al-Munif added. 

She also said the NEOM project is trying to reinvent and introduce environmental factors, thus ensuring harmony with nature. 


Top CEO Conference and Awards to recognize industry leaders in GCC

Updated 15 May 2022

Top CEO Conference and Awards to recognize industry leaders in GCC

  • Publicly listed firms in GCC bourses are evaluation on their annual financial performance

DUBAI: Braving the setbacks they had faced during the pandemic, head honchos of top companies will be attending the Top CEO Conference and Awards to be held in the city from May 17-18 to celebrate leadership in the Gulf Cooperation Council.

According to the organizer’s statement, the Top CEO Awards are based on the financial performance, size and corporate governance of GCC-listed companies.

Julien Hawari, organizer of the TOP CEO, Special Edition, said in the statement: “All of the publicly listed companies in the Arabian Gulf stock markets are evaluated on their annual financial performance, and the ranking is not a result of a nomination by a jury relying on undisclosed metrics.”

The statement added that companies are evaluated if they are listed on any of the seven GCC stock markets. Moreover, Hawkamah Institute has provided corporate governance guidelines developed by the Top CEO in partnership with INSEAD Business School.

One of the Big Four has audited the results, and KPMG is auditing the Top CEO ranking for the 2022 awards, the statement said, while adding that Arab News and Al Arabiya News channel were chosen as media partners of the event.

According to Hawari, the awards were created in 2012 to recognize those who created value and boosted the region’s economy while maintaining transparency and good corporate governance.

FASTFACT

One of the Big Four has audited the results, and KPMG is auditing the Top CEO ranking for the 2022 awards.

The statement added that there are 10 categories of companies to be divided into, and the Top 10 CEOs in each category are recognized, totaling 100 awards.

The 10 categories are banking, energy and utility, financial services and investment, insurance, logistics and industrials, malls, real estate and construction, mining, metals and chemicals, retail, FMCG and consumer care, Shariah-compliant banks and financial services and telecom, tech and media.

Commenting on the event, Hawari said: “Global market forces are coming together in the post-pandemic economies to rebuild communities and businesses, and our region is no different.”

Compared to the pause of business in 2020 and slow growth in 2021, the first three months of 2022 saw Arabian Gulf stock markets increase by the most since the global financial meltdown.


Pakistan’s oil, food bill swells to $24.8 billion amid rising commodity prices, rupee depreciation

Updated 15 May 2022

Pakistan’s oil, food bill swells to $24.8 billion amid rising commodity prices, rupee depreciation

  • Petroleum products make up for 26% of Pakistan's overall imports worth $65.53 billion
  • Finance minister says he will talk to the IMF but refuses to withdraw energy subsidies

KARACHI: Pakistan’s oil and food import bills have swelled to $24.8 billion during the current fiscal year due to increasing global commodity prices and weakening national currency, according to official data and analysts. 

The oil and food import bills of the South Asian country, which is struggling with a worsening balance-of-payment crisis in the face of declining foreign exchange reserves, rose by 96 percent and 12.3 percent respectively from July 2021 till April 2022. 

Pakistan imported oil products worth $17.03 billion during this period, compared to imports worth $8.69 billion during the corresponding period last year. It contributed 26 percent to the country’s overall $65.53 billion imports, according to the Pakistan Bureau of Statistics (PBS). 

The food import bill during the period stood at $7.75 billion against the $6.9 billion recorded during the same period last year. The import of palm oil worth over $3 billion alone made up for a major share of the import bill, which surged by 44 percent from July till April. 

“The surging global commodity prices are a major reason behind high oil and food prices, mainly due to the Russia-Ukraine war and revival of COVID-19 that have disrupted the supply and demand balance,” Ahsan Mehanti, chief executive officer of the Arif Habib Commodities investment firm, told Arab News on Sunday. 

“Inflation triggered by the import of energy and food items at higher prices will continue to persist as long as the rupee does not recover.” 

The Pakistani currency continues to hit new lows against the United States (US) dollar as the demand for import payments continues to build pressure on the rupee. On Friday, the rupee hit yet another historic low as the greenback closed at Rs192.53 in the interbank market.    

The US dollar has gained 6 percent or Rs10.98 against the rupee since April 16, when it was trading at Rs181.55.  

Experts believe the Pakistani currency will recoup some of the lost ground after Islamabad and the International Monetary Fund (IMF) sign a deal for the revival of $6 billion loan program. 

“We see the dollar hitting Rs200 mark against the rupee before falling back to around Rs180,” Mehanti said. "We expect the rupee to recover after Pakistan signs a deal with the IMF next week." 

Pakistan and the IMF are currently negotiating the country's seventh review under the $6 billion Extended Fund Facility (EFF), which has so far disbursed $3 billion. Islamabad is expected to receive another $1 billion after the completion of the review.    

The review has been stalled since the previous government announced in February around $1.7 billion relief in energy prices while deviating from the objectives of the IMF program.  

“I am going to talk to the IMF and will find out the solution to the issue amicably,” Miftah Ismail, the Pakistani finance minister, said at a press conference in Islamabad on Sunday. 

“The government has no intention to further increase the petroleum prices. The prime minister has refused to burden the people further.” 

Pakistan’s imports of machinery also posted an increase by 20.5 percent to $9.5 billion from July till April as compared to $7.9 billion during the same period last year. Imports of telecom equipment jumped by 14 percent to $2.4 billion, while mobile phone imports rose by 7.4 percent to $1.8 billion.   

The South Asian nation imported vehicles worth $3.7 billion, which shows over 60 percent growth in 10 months of the current fiscal year.   

Pakistan suffered $39.3 billion trade deficit from July till April due to the highest ever imports of $65.53 billion. Experts call for addressing the situation by restricting the import of non-essential and luxurious goods.