Experts to discuss future of finance at Saudi Capital Market Forum

Top officials and experts discuss the development of the financial sector during a panel discussion at the forum last year. File
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Updated 18 February 2024
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Experts to discuss future of finance at Saudi Capital Market Forum

RIYADH: Global financial experts will gather in Riyadh on Monday to discuss the future of finance, evolving strategies, and innovative ideas to boost the sector’s growth at the third Saudi Capital Market Forum.

The two-day event organized by Saudi Tadawul Group, to be held under the theme “Powering Growth,” will serve as a nexus for transformative dialogue and innovation, fostering the convergence of emerging markets with established financial frameworks.

Emphasizing the pivotal role of such events, Mahmoud Khairy, an economist and policy adviser, told Arab News that “the forum facilitates essential dialogue among key stakeholders, fostering collaboration and innovation within the financial sector.”

He added: “By providing a platform for discussions on innovative financial instruments, and strategies, and fostering strategic collaborations, the event contributes to the overall efficiency and attractiveness of the capital markets.”

Khairy said the event also aligns with Vision 2030’s goals by promoting transparency, and good governance, and attracting domestic and international investments.

The educational opportunities offered at the forum also play a vital role in developing a skilled workforce necessary for the effective functioning of capital markets, according to the economist.

Khalid Al-Hussan, CEO of Saudi Tadawul Group, remarked in a statement: “As a pivotal entity in Saudi Arabia’s financial domain, Saudi Tadawul Group spearheads the development of the Kingdom’s capital market, propelling economic metamorphosis forward.”

The chairperson of Saudi Tadawul Group, Sarah Al-Suhaimi, said at the last forum that the Kingdom’s capital market is one of the strongest and fastest-growing investment destinations in the world, with a value exceeding $2.7 trillion.

Saudi Arabia has strategically positioned its capital markets to attract foreign investment by implementing comprehensive reforms, according to Khairy. “These include aligning regulatory frameworks with international standards, achieving inclusion in major global indices, diversifying financial products, conducting extensive investor outreach programs, and investing in technology and infrastructure,” he said.

Khairy added: “The liberalization of foreign ownership and the establishment of strategic partnerships with international institutions further contribute to enhancing the attractiveness and competitiveness of the Saudi capital market on the international stage.”

Culminating in the 2023 Saudi Capital Market Awards ceremony, the forum will laud market participants across 17 categories, recognizing their contributions to the evolution of the Kingdom’s market.

Speaking on the success of market participants in Saudi Arabia, Khairy said that it is contingent on a “combination of factors aligned with the goals of Vision 2030 and the Financial Sector Development Program.”

He went on to explain that “regulatory reforms and enhanced governance contribute to a transparent and stable environment, while the embrace of technology and innovation fosters efficiency and customer-centricity.”

Khairy added: “Inclusivity and talent development contribute to a skilled and diverse workforce, international collaboration enhances market competitiveness, and a focus on sustainable and responsible investing aligns with broader environmental and social objectives.”

Categories such as “IPO of the Year 2023 (Main Market & Nomu – Parallel Market),” “ESG Relations Program of the Year,” and “Broker of the Year” will be spotlighted, celebrating excellence and innovation.

In the Saudi financial sector, there is a notable trend toward integrating environmental, social, and governance considerations into investment practices. Khairy emphasized that it “is evident through increased awareness, regulatory initiatives from entities like the Capital Market Authority, and a growing emphasis on sustainable and responsible investing.”

He explained that “companies and investors are incorporating ESG criteria into decision-making processes, with a particular focus on disclosure and transparency. This trend has influenced market dynamics, driving investments toward entities demonstrating strong ESG practices, and contributing to the broader global shift toward sustainable finance.”

According to the adviser, the government’s initiatives, such as the Saudi Green Initiative and the Green Financing Program, also underscore the commitment to fostering a more sustainable and environmentally conscious financial ecosystem.

The Saudi Capital Market Forum serves as a beacon for global financial luminaries, fostering dialogue and innovation at the intersection of emerging and established markets.

Khairy said: “As the market becomes more transparent and integrated into global indices, portfolio diversification gains prominence, allowing investors to strategically allocate assets across sectors such as technology and renewable energy.

“However, the evolving nature of emerging markets introduces inherent risks, demanding careful risk assessment and dynamic risk management strategies. Currency considerations also play a crucial role, and investors must navigate potential fluctuations to optimize returns.”

The economist said that the overall effect is likely to reshape investment approaches, emphasizing an understanding of Saudi Arabia’s market dynamics and aligning portfolios with the Kingdom’s ongoing economic diversification efforts.

Among the notable figures slated to grace the event is Saudi Finance Minister Mohamad Al-Jadaan, who will deliver a keynote address, shedding light on the trajectory of Saudi Arabia’s financial sector development and elucidating the government's strategic vision.

In addition to keynote addresses, the summit is set to feature an array of engaging panel discussions covering a diverse range of topics pertinent to the capital markets landscape.

Khairy said: “The discussions focus on strategies to mobilize funds and drive investments into non-oil sectors, emphasizing financial market reforms, technology adoption, inclusivity, sustainability, and international collaboration.”

He added: “Initiatives promoting green finance, partnerships to attract foreign investments, and education for workforce development are anticipated topics.”

Moreover, the summit will facilitate intimate one-on-one sessions, providing attendees with a unique opportunity to engage directly with industry leaders and gain invaluable insights into the strategic priorities of key organizations such as oil giant Aramco, giga-project NEOM, and KAFD.

On the second day, the focus will shift toward an in-depth analysis of global economic trends and forecasts.

The CEO of Saudi Tadawul Group is scheduled to lead discussions alongside a panel of economists from renowned institutions such as Al-Rajhi Capital, Morgan Stanley, Goldman Sachs, J.P. Morgan, and EFG Hermes.


Mapping Saudi soils to grow better crops

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Mapping Saudi soils to grow better crops

  • Palm trees, root crops, and coastal plants reveal the land’s story

RIYADH: Saudi Arabia’s land tells stories written beneath the feet. From fertile plains and rugged highlands to vast deserts, the Kingdom’s diverse landscapes shape what can grow, where it grows, and how agriculture can thrive.

Alongside geography and climate, soil conditions play a decisive role in agricultural success. Understanding soil types across the Kingdom helps determine which crops can flourish and what interventions may be needed to sustain them.

In an interview with Arab News, Turki Almutairi, a senior environmental specialist at the National Afforestation Center under the National Center for Vegetation Cover Development and Combating Desertification, outlined the main soil types found across Saudi Arabia.

High amount of salt makes the soil unfit for the production of most crops, even if the soil is fertile. (Supplied)

“The dominant soil in the Kingdom are sandy desert soils, alongside calcareous soils in the central region. Rocky and stony soils are present along mountainous and hilly landscapes,” he said.

“Alluvial soils are common in wadies (valleys), while saline and sodic soils are located in depressions (Sabkhas) and along coastlines. Pockets of clayed soils can be also found around few sites along the Kingdom.”

The Kingdom’s vast territory gives rise to unique soil characteristics in each region, enabling different crops to grow depending on local conditions.

“Soil is the growing medium for plants. The role of soil includes structural stabilization, providing nutrients and a communication medium for plants,” Basil Nasir, soil lead at engineering consultancy William Sale Partnership, told Arab News.

Basil Nasir, soil lead at the engineering consultant company, William Sale Partnership (WSP). (Supplied)

According to Nasir, assessing soil use is essential before determining whether it is fertile or infertile, as different soils support different plant types.

“The soil used for trees differs from the soil used for ornamental plants and from the soil used for aquatic plants. It varies according to the specific needs of each plant, and based on this, we determine what the soil requires and assess its fertility,” he said.

Nasir explained that soil characteristics are shaped by both physical and chemical components. In addition to water and air, mineral particles such as sand, silt and clay are key indicators of soil health. Organic matter, derived from plant and animal remains, forms the fourth major component.

The balance between these elements determines soil behavior. One important physical trait is water-holding capacity, which influences what types of plants a soil can support.

 

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“If the soil is like dunes, adding water will cause it to run off, but if the soil is clay, its ability to retain water will be very high. If you add water and return the next day, you will find that the water is still there,” said Nasir.

Chemical properties, such as whether soil is alkaline or acidic, are equally important. Understanding both physical and chemical traits allows for proper assessment and treatment when needed.

“What determines whether a plant is suitable for a particular environment is primarily the plant's nature. For example, some plants have fibrous roots and therefore do not require well-draining soil,” Nasir added.

“A palm tree, for example, does not care whether it was planted in one soil or the other because its roots are fibrous. Therefore, palm trees are strong plants and are suitable to grow in both dry and wetlands, while preferring sandy areas.”

Soil Salinity can be treated through Soil leaching which means washing the soil with certain amount of water to reduce the salt in it. (Supplied)

Crops such as potatoes, onions, carrots and beetroots — where the edible part grows underground — typically thrive in sandy soils. As a result, plantations of these crops are commonly found in northern regions such as Hail and in Wadi Ad-Dawasir.

In the eastern region, including Al-Ahsa, wetlands are more common due to climatic conditions. Growing plants in such environments often requires human intervention.

“Plants that are coastal or could be found in lagoons or lakes must have some sort of soil around them, like lotus flowers and mangrove trees.”

“An important parameter to keep in mind is that there is no air in its soil, and they are adapted to this condition. However, the lack of air, along with the presence of organic matter, will create a situation where anaerobic bacteria react with the soil, potentially causing diseases we can easily avoid,” said Nasir.

He emphasized that removing organic matter from such soils is essential to ensure plant survival in aquatic environments.

Mountainous and rocky regions in Saudi Arabia are generally volcanic, resulting in low water-holding capacity and challenging growing conditions. However, volcanic ash contributes to high fertility, allowing certain crops to flourish.

As a result, western regions support tree crops such as coffee, mangoes, some banana varieties and pomegranates.

There are various types of soils such as clay, sandy, silty and loamy. Each type provides excellent conditions for specific plants. (Supplied)

As development accelerates across the Kingdom, soil improvement efforts are expanding under the National Greening Program.

“Soil is considered fundamental for the National Greening Program’s objectives. Understanding the soil variability along the Kingdom is a precondition for fostering sustainable soil management,” Almutairi told Arab News.

Adding, “In this line, the NGP is working towards the establishment of the Saudi Soil Information System (TURBA-KSA), which consists of mapping soils and its functional properties in the Kingdom using state-of-the-art technology.”

He also noted the creation of the “Land Rehabilitation Watch” to report, verify and monitor land rehabilitation nationwide.

“This milestone allows the Kingdom to understand how soil and land health are progressing against national and international targets of land degradation neutrality. Documenting good soil and land management practices is also important, so that those successful practices could be scaled up along the Kingdom, which is a priority task for NGP,” he said.

Raising public awareness is another key pillar of the program.

“Assessing different emerging technologies and soil amendments is a daily activity of NGP, as it then provides technical support to partners on the selection and application of these technologies.”

DID YOU KNOW?

• Saudi Arabia cultivates around 1 million hectares, mainly in Riyadh, Qassim, Hail, and Jouf.

• Farming follows the seasons: winter brings onions, garlic, and carrots, while summer yields watermelon, tomatoes, and cucumbers.

• The Kingdom is a top date producer, with over 31 million palm trees generating nearly 1.54 million tons, especially in Riyadh and Qassim.

Almutairi stressed that soil is often overlooked because it lies unseen beneath the surface, despite its critical role.

Yet soil produces 95 percent of food, stores water, holds more carbon than vegetation and the atmosphere, suppresses contaminants, regulates water, carbon and nutrient cycles, and hosts microorganisms linked to the human microbiome.

He emphasized the need to engage the general public, particularly urban communities disconnected from nature. Education helps people understand where food comes from and how contact with soil — such as walking barefoot — can support well-being. Healthy soils also contribute to cleaner water and air, he added.

Almutairi also called for stronger advocacy among decision-makers, noting that investment in healthy soils supports climate action, food security and sustainable development.

He concluded that key strategies include officially observing UN World Soil Day on Dec. 5, integrating soil education into curricula, launching annual social media campaigns, using art to raise awareness, and organizing public events that connect soils to everyday life.