Saudi investment minister: Energy, stability key to future Gulf prosperity

Saudi investment minister: Energy, stability key to future Gulf prosperity
Minister of Investment Khalid Al-Falih at the World Economic Forum. (Screengrab/@MEPSaudi)
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Updated 16 January 2024
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Saudi investment minister: Energy, stability key to future Gulf prosperity

Saudi investment minister: Energy, stability key to future Gulf prosperity
  • ‘The most important thing is political stability, long-sighted vision and consistency,’ Khalid Al-Falih tells WEF
  • Kuwaiti finance minister: Sovereign wealth funds ‘one of the examples of the strength of the GCC countries’

LONDON: The energy transition will be at the core of the Gulf region’s strategy to continue to fuel its growth, Saudi Arabia’s investment minister said on Tuesday at the World Economic Forum in Davos, Switzerland.

“The most important thing is political stability, long-sighted vision and consistency,” Khalid Al-Falih told a panel titled “Gulf Economies: All In.”

He added: “Saudi Arabia is very committed to working with our GCC (Gulf Cooperation Council) partners … and our private sector companies are fully embedded in each and every nation of the GCC as we create value to each other.”

Al-Falih said the region will “transition more to a decarbonized, environmentally suitable mix of energy that will have oil and gas continuing for a long, long time, but of course will bring the green, blue and other forms of energy that’s emerging.

“That’s a huge growth potential for the Kingdom, but I believe it’s going to be done at a regional level.

“We’ve seen Saudi companies invest heavily in the Emirates, in Bahrain, in Kuwait and in Oman as we built this sector of renewable energy and hydrogen.”

Al-Falih also noted the progress being made elsewhere as Gulf economies seek to diversify away from fossil fuels to strengthen their economies.

“The other trend, of course, is digital transition. With everything from cloud computing, AI (artificial intelligence) recently, and all of the capabilities that digitization brings, I think that the region is going to continue to lead in this area,” he said.

“I think connectivity, speed and what have you (are) all big enablers for industries, for logistics, for travel and tourism to come to the Kingdom — and to the region — and take advantage of this digital platform.”

Al-Falih touched upon the Gulf’s location at the crossroads between Europe, Asia and Africa, coupled with its rapidly improving infrastructure, as reasons to remain bullish on GCC prosperity, adding: “We have the infrastructure to allow global value chains to be reengineered.”

Bahrain’s Finance Minister Salman bin Khalifa Al-Khalifa said the GCC’s growth is opening up numerous economic possibilities.

The GCC “is moving towards being a $3 trillion per annum GDP (gross domestic product) economic zone by 2030, and moving towards being a $6 trillion per annum economic zone by 2050. That’s the macro trend at conservative numbers,” he added.

“Saudi Arabia is 50 percent of that GDP and a big driver of that growth, and that growth across the region is being driven by sound policy, by excellent execution, and by making sure that we’re simplifying doing business and having a very rapid decision-making process, and we’re seeing the results in that growth.”

He said Bahrain, like Saudi Arabia and others, is diversifying its income streams and investments as it looks towards its future.

“There are six sectors that we’re focused on, and those six sectors are banking, telecoms and digital services, manufacturing, logistics, oil and gas, and tourism, and we’re putting everything into those sectors,” he added.

“Today in Bahrain, 83 percent of GDP is non-oil, and the largest sector in the economy is banking and finance. 

“What we’ve found is that whenever you simplify procedures, whenever you go in and get government out of the way and allow the private sectors to move at the pace that they want to move … things thrive.”

Al-Khalifa rejected suggestions that the Gulf states could be hampered by competition between each other, saying: “The pie currently is growing so fast that competition isn’t even on the table. Everybody is trying to grow their service sectors, grow their participation, grow their GDP, and there’s a lot of synergistic benefits.”

Kuwait’s Finance Minister Ali Ahmed Al-Kuwari noted the role that sovereign wealth funds have to play in driving growth across the Gulf, calling them “powerhouses” and “one of the examples of the strength of the GCC countries.” 

He said they are vital for the future of Gulf economies as “they’re able to invest and co-invest in the private sector” in areas where investment could perhaps be deemed unattractive in the short-to-medium term to drive growth over lengthier periods.

Al-Kuwari equated this to the various national development strategies of states such as Saudi Arabia and Bahrain, saying this “long view” is key to continued success.

However, he warned that regional insecurity poses a threat to this prosperity, citing the current conflict in Gaza as a cause for concern.


Health campaign promotes quality care in Saudi Arabia

Health campaign promotes quality care in Saudi Arabia
Updated 04 November 2024
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Health campaign promotes quality care in Saudi Arabia

Health campaign promotes quality care in Saudi Arabia

RIYADH: The Ministry of Health has launched a campaign to promote health by enhancing access to and the quality and efficiency of health services and raising awareness of health risks, the Saudi Press Agency reported Monday.

The campaign “A Vibrant, Healthy Nation” introduces a modern healthcare model, offering integrated, individual-centered services aligned with Vision 2030’s goal of fostering a healthy society.

The ministry is committed to “enhancing public health, improving quality of life, and raising the Kingdom’s global healthcare standing.”

The campaign highlights the health transformation initiative’s positive impacts and informs citizens about its main features, aiming to engage all segments of society, SPA reported.

It emphasizes a shift from treating illness to prevention, involving primary care doctors and early detection programs.


Saudi environment ministry launches program to develop green tech

Saudi environment ministry launches program to develop green tech
Updated 04 November 2024
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Saudi environment ministry launches program to develop green tech

Saudi environment ministry launches program to develop green tech
  • Scheme seeks new ways to repurpose wastewater, looks at impact of microplastics

RIYADH: The Ministry of Environment, Water and Agriculture has opened applications for a new program to find ways to develop sustainable technologies in Saudi Arabia.

The Sustainable Innovation Fellowship Program aims to find ways to repurpose by-products from water treatment for the benefit of the environment; develop sustainable technologies for recycling membranes used in water treatment; and explore methods to reuse treated wastewater in desert and arid regions.

Supported by the Environment Fund and the Research, Development and Innovation Authority, the fellowship program will also assess the environmental impact of microplastics in water treatment plants, sewage, and wastewater.

In line with Saudi Vision 2030, the Ministry of Environment, Water and Agriculture is also introducing new e-services in accordance with international standards.


Industry meets creativity at Athar festival in Riyadh

Industry meets creativity at Athar festival in Riyadh
Updated 04 November 2024
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Industry meets creativity at Athar festival in Riyadh

Industry meets creativity at Athar festival in Riyadh
  • With workshops, discussions, and awards, the festival aims to drive growth in Saudi Arabia’s creative sectors

The second Athar Saudi Festival of Creativity will take place in Riyadh from Nov. 5 to 6.

Hosted by UAE-based Motivate Media Group and communications consultancy TRACCS, the festival will gather over 1,500 professionals and leaders from the creative marketing industry, featuring 100 regional and international speakers.

Ian Fairservice, managing partner and group editor in chief of Motivate Media Group, will chair the event, alongside Vice Chairman Mohammed Al-Ayed, CEO of TRACCS.

Pre-festival activities began on Nov. 3 with the Young Talent Academies, including the Student Creative Academy (in partnership with the Middle East Communications Network), the Student Marketers Academy, the NextGen Creative Academy, and the NextGen Marketers Academy.

These academies, featuring keynote sessions from industry experts, workshops, and a 24-hour hackathon, are open to full-time university students aged 18 to 25 and professionals under 30 in creative communications, marketing, or advertising.

The festival will continue on Tuesday and Wednesday with panel discussions, presentations, and fireside chats focused on redefining and growing the creative landscape in Saudi Arabia, the Middle East, and beyond, covering various sectors such as sports, entertainment, and tourism.

The event will conclude with the Athar Awards ceremony on the evening of Nov. 6.

Notable speakers include Sir Martin Sorrell, founder and executive chairman of S4 Capital PLC; Matt McKie, director of marketing for Manchester United; Waseem Kashan, executive director of marketing at ROSHN Group; Yahya Hamidaddin, vice president of corporate communications at ACWA Power; and Houda Tohme, CEO of Havas Media Middle East.

Sessions and keynotes will explore themes such as purpose-driven marketing, brand growth strategies, artificial intelligence, technology, cross-sector innovation, and unlocking creative potential.


Saudi Arabia and Iraq sign MoU on military cooperation

Saudi Arabia and Iraq sign MoU on military cooperation
Updated 04 November 2024
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Saudi Arabia and Iraq sign MoU on military cooperation

Saudi Arabia and Iraq sign MoU on military cooperation
  • Two defense ministers reviewed longstanding relations between their countries, focusing on ways to enhance defense ties

RIYADH: Saudi Defense Minister Prince Khalid bin Salman and his Iraqi counterpart Thabet Al-Abbasi signed a memorandum of understanding on Monday aimed at strengthening cooperation in the military field.

The agreement, signed during a high-level meeting in Riyadh, represents a significant step forward in defense collaboration between the Kingdom and Iraq, Saudi Press Agency reported.

During their discussions, the two ministers reviewed the longstanding relations between their countries, focusing on ways to enhance defense ties.

They emphasized the importance of continued cooperation to foster regional security and stability, particularly amid ongoing regional tensions.

Both ministers discussed recent developments and shared efforts aimed at de-escalating conflicts, prioritizing actions that support peace and security in the region.

The MoU establishes a framework for increased collaboration on military matters, allowing Saudi Arabia and Iraq to address shared security challenges more effectively and pursue mutual goals in defense, SPA added. 


Saudi Islamic affairs minister receives Chinese envoy

Saudi Islamic affairs minister receives Chinese envoy
Updated 04 November 2024
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Saudi Islamic affairs minister receives Chinese envoy

Saudi Islamic affairs minister receives Chinese envoy

Saudi Minister of Islamic Affairs, Dawah and Guidance Dr. Abdullatif Al-Asheikh received Chinese Ambassador to the Kingdom Chang Hua in Riyadh on Monday.

During the meeting, they exchanged cordial talks and discussed issues of common interest, particularly those related to Islamic work and promoting moderation and peaceful coexistence, the Saudi Press Agency reported.

Riyadh Gov. Prince Faisal bin Bandar received Ambassador of Iran to the Kingdom Alireza Enayati in Riyadh on Monday. They discussed bilateral relations and other topics of common interest.