NEOM renews partnership with Asian Football Confederation to 2029
Updated 10 July 2024
ARAB NEWS
RIYADH: Collaboration between Saudi Arabia’s $500 billion giga-project NEOM and the Asian Football Confederation will run until 2029 after a partnership deal between the two was renewed.
Under the terms of the arrangement, NEOM will continue to serve as the official global partner of the AFC national team and club competitions and be the presenting partner of the first pan-Asian AFC Women’s Champions League.
The agreement aims to promote inclusivity in sports and support the development of women’s football across Asia, a press release stated.
The two parties first signed a four-year partnership in 2021, which encompassed major AFC national team competitions, including the 2022 World Cup and AFC Asian Qualifiers featuring the continent’s top 12 football nations, as well as Asia’s flagship national team competition, the AFC Asian Cup China 2023.
“NEOM’s partnership with the Asian Football Confederation provides us with a valuable platform to collaborate with a global football leader, creating opportunities and positively contributing to the development of sport across Asia,” Nadhmi Al-Nasr, CEO of NEOM, said.
“Sport is a key component of Saudi Vision 2030’s ambition to develop a healthy society with strong social bonds and the extension of our partnership with the AFC supports NEOM’s aspirations to become an innovative hub for sport and its goal to have one of the most physically active societies globally,” he added.
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The release further stated that the partnership aims to reinforce NEOM’s presence in Asian football, marked by AFC’s revamped club tournaments.
The newly introduced AFC Champions League Elite Finals will see NEOM as the Official Global Presenting Partner of the eight final matches being played in Riyadh in 2025.
NEOM will also be the Presenting Partner of the inaugural AFC Women’s Champions League, promoting the top 12 women’s clubs from across Asia.
This agreement builds on the foundations laid over the past four years as Saudi Arabia prepares to host prestigious football competitions such as the AFC Asian Cup Saudi Arabia 2027.
The partnership between NEOM and the AFC has led to the creation of “Champions of Progress,” an initiative designed to use the global platform of football to drive positive change across the region. This undertaking will focus on activations and developing the next generation of talent across AFC competitions.
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“This partnership renewal further reinforces the appeal of the AFC’s competitions to engage with the millions of passionate fans of Asian football and we look forward to creating more historic moments with NEOM to achieve mutually beneficial outcomes,” the AFC General Secretary, Datuk Seri Windsor John said.
The collaboration with the AFC is expected to significantly contribute to the livability of NEOM’s residents and the project’s dynamic economy, the release added.
NEOM further stated that it aims to become one of the world’s most physically active societies, with its residents engaging with AFC events and enabling a grassroots development program targeted at youth across Saudi Arabia.
The partnership has already supported NEOM’s initiatives, such as the Shuhub Community Program, which has engaged 10,000 young people around the Kingdom to date.
Through this collaboration, NEOM has provided local boys and girls from football community groups with opportunities to participate in AFC matches as player mascots, center circle children, and the first-ever trophy handover children at the AFC Champions League 23/24 Final.
Saudi banks in strong position to harness the benefits of economic diversification: Report
Saudi Arabia and Oman are the top two GCC countries with the lowest volatility in non-oil sector expansion
Updated 4 sec ago
Dayan Abou Tine
RIYADH: Saudi banks will see their client base expand and earnings increase thanks to government-backed economic diversification efforts that are driving innovation and boosting productivity, according to a new report.
According to Moody’s analysis of banks in the Gulf Cooperation Council and Commonwealth of Independent States, Saudi Arabia and Oman were the top two GCC countries with the lowest volatility in non-oil sector expansion from 2020 to 2023.
The Kingdom also ranked among the top three for cumulative non-oil growth during this period, along with the UAE and Qatar.
Vladlen Kuznetsov, assistant vice president at Moody’s Ratings said: “Oil-dependent economies in the Gulf, Iraq, Kazakhstan and Azerbaijan are broadening as governments provide funding for diversification initiatives.”
He added: “Barring external shocks, growth in non-oil sectors is poised to exceed 3 percent or 4 percent over the coming years, accelerating from an average of around 1 percent or 2 percent in 2016-2021. This will outpace growth in oil sectors in most cases.”
Moody’s noted Saudi Arabia’s Vision 2030 aims to cut oil dependence by boosting real estate and tourism with projects like NEOM. Banks, though small relative to the economy, are increasingly funding non-oil ventures and have high-quality loans.
State financing is fueling large infrastructure projects. (SPA)
Slower deposit growth might push them toward unstable market funding. Nonetheless, strong government creditworthiness and ongoing diversification are expected to improve support for banks during economic stress.
The Kingdom has actively utilized the debt market to finance its ambitious projects, leading the GCC bond market in the first half of 2024.
According to a report from Kuwait-based Markaz, the Kingdom raised $37 billion through 44 issuances over this period. Despite these substantial funding needs, Saudi banks maintain healthy balance sheets, with S&P Global Ratings assigning investment-grade ratings and stable outlooks to most major lenders.
The economies of the Gulf states, Iraq, and parts of the CIS remain heavily reliant on oil and gas. However, climate concerns are driving a shift toward new sectors, supported by government diversification efforts.
State financing is fueling large infrastructure projects and offering subsidies to small and medium-sized enterprises in non-oil sectors.
GCC governments, including Saudi Arabia, Kuwait, and Oman, as well as Qatar, UAE, and Bahrain, are working to reduce their dependence on hydrocarbons through ambitious diversification initiatives – along with CIS countries including Kazakhstan and Azerbaijan.
According to Moody’s, these projects aim to mitigate economic vulnerability to oil price fluctuations and enhance resilience to the global carbon transition, benefiting local banks. However, the full impact of these diversification efforts may take years to realize.
Benefits and challenges of diversification
In oil-dependent economies, domestic banks often focus on narrower non-oil sectors like real estate, construction, trade, and services, as well as some manufacturing, according to Moody’s.
Large oil and gas companies in these economies, being financially robust, typically borrow from global banks rather than domestic ones, limiting the lending opportunities for local banks.
Consequently, domestic banks’ loan portfolios are dominated by a few large entities, and their deposit bases are similarly concentrated.
Most large-scale diversification projects are financed by governments and state-owned enterprises, rather than local banks, which contrasts with more developed economies where such efforts are often bank-funded, the report added.
In GCC countries, the presence of wealthy governments and state-owned firms further reduces the demand for domestic bank loans.
The report mentioned that as these economies diversify, banks will benefit from several factors. They will expand their franchises and improve financial inclusion, as non-oil sectors tend to be more stable than oil sectors, leading to steadier economic growth and increased public wealth.
This wealth boost enhances the creditworthiness of retail borrowers and offers banks more lending opportunities. New companies will emerge, profits will rise as firms innovate, and household incomes will increase.
More lending options will help banks manage risks better and stabilize credit cycles in volatile sectors like retail and construction. With reduced economic volatility, banks will find it easier and cheaper to obtain long-term funding.
Increased monetary and economic stability will attract long-term deposits and foreign investment, improving banks’ funding sources and supporting their growth.
Stable government finances will also enhance their ability to assist banks during difficult times, although these benefits may take years to fully materialize.
The benefits of economic diversification vary across banks and economies due to factors like legal frameworks, rule of law, and corruption according to Moody’s.
Larger banks, especially in developed economies, can leverage diversification more effectively due to their financial strength, supporting growth in sectors like manufacturing and construction.
Banks in Qatar, UAE, and Kuwait are already significant in financing economic development. However, the impact on banks’ loan quality, funding, and government support will depend on their current conditions.
For example, banks in Saudi Arabia with low problem loans may see less impact compared to those with higher problem loans, like in Kazakhstan.
Banks in the CIS and Iraq, where banking sectors are smaller relative to the economy, have the most potential for growth.
Overall, banks in Kazakhstan, Azerbaijan, and Qatar, as well as Oman, the UAE, and Saudi Arabia are well-positioned to benefit from diversification according to Moody’s. They either experience strong economic momentum or have opportunities to tackle key credit challenges, such as franchise growth, loan quality, funding, and government support.
Government role
According to Moody’s, diversification relies heavily on government initiatives and can be hindered by unfavorable commodity price changes or geopolitical shocks.
Countries like Saudi Arabia, UAE, and Kuwait, as well as Qatar, Azerbaijan, and Kazakhstan, have substantial resources for infrastructure and sectoral subsidies, though not all invest significantly.
Saudi Arabia’s government budget expenditures amounted to $344 billion in 2023, reflecting an 11 percent increase from the previous fiscal year. In an announcement in December 2023, the Ministry of Finance projected expenditures of 2024 to total $333 billion.
This translates into 27.5 percent of government debt to GDP ratio according to IMF World Economic Outlook in April.
This is in comparison to the UAE’s 2024 budgeted expenditures of $17.44 billion and Kuwait’s projected government expenditures of $80 billion, according to announcements by their respective ministries of finance.
According to the IMF, Kuwait’s debt-to-GDP ratio is projected to be 7.1 percent, and the UAE’s is expected to be 30.3 percent
Saudi Arabia boasts one of the highest reserve coverage ratios among Fitch-rated sovereigns, equivalent to 16.5 months of current external payments.
This budget will focus on accelerating the implementation of critical programs essential to achieving the goals of Saudi Vision 2030 according to the Ministry.
It also highlighted the importance of fostering stronger partnerships with the private sector to advance economic diversification and enhance job opportunities for the Saudi workforce.
Finance minister, SAMA governor participate in G20 ministerial meeting in Rio de Janeiro
Mohammed Al-Jadaan and Ayman bin Mohammed Al-Sayari took part in the meeting
Updated 27 min 14 sec ago
Arab News
RIYADH: The Saudi Minister of Finance and the governor of the Saudi Central Bank (SAMA) concluded their participation in the third G20 Finance Ministers and Central Bank Governors Meeting, which was held on Thursday and Friday in Rio de Janeiro.
Mohammed Al-Jadaan and Ayman bin Mohammed Al-Sayari took part in a discussion session titled “Global Economic Outlook and Persistent Challenges.”
Al-Jadaan pointed out that despite the noticeable recovery in the global economy, it remains below desired levels.
He highlighted the achievements of long-term economic planning under Saudi Vision 2030 and the importance of multilateral cooperation in addressing global challenges.
During the session on “International Tax Cooperation,” he expressed the Kingdom's appreciation for efforts supporting the international tax cooperation agenda.
n the session on “Facilitating Finance to Achieve Climate and Sustainable Development Goals,” he underscored that sustainable finance required a coordinated global effort.
He also emphasized the importance of allowing countries to implement approaches aligned with their national policies and procedures, which must include carbon capture technologies.
In a session on development financing, participants discussed capital flows, global debt issues, and reforms of multilateral development banks.
Al-Jadaan highlighted the importance of addressing debt challenges in low-income countries facing high debt distress and reiterated the Kingdom's support for efforts to enhance the implementation of the Common Framework for Debt Treatment Initiative.
Saudi Arabia’s GACA, SAMI come away from Farnborough Airshow with deals, agreements
Delegation briefed on the latest technologies, innovations
GACA officials also held a roundtable meeting with Saudi-British Business Council
Updated 27 July 2024
Arab News
LONDON: Saudi Arabia’s General Authority of Civil Aviation built good investment opportunities with British companies after visiting the Farnborough International Airshow, which concluded on Friday, its president said on Saturday.
Abdulaziz bin Abdullah Al-Duailej led the GACA delegation at the airshow, where they were briefed on the latest technologies, innovations, and solutions in the aviation industry, including advanced air mobility, space, and sustainability, the Saudi Press Agency reported.
GACA officials also held a roundtable meeting with the Saudi-British Business Council to discuss investment and cooperation opportunities in the civil aviation sector during their visit to the UK.
On the sidelines at Farnborough, GACA signed a memorandum of cooperation with the German company Lilium, a leading manufacturer of vertical take-off and landing aircraft, “with the aim of contributing to the development of the regulatory framework for advanced air mobility in Saudi Arabia,” the SPA reported.
The Saudi Air Navigation Services Company also signed a framework agreement with the British Air Traffic Control Company, also known as NATS, to enhance airport capacity.
The Saudi Academy of Civil Aviation, Prince Sultan University, and Cranfield University also signed an agreement with the goal of developing aviation science research and exchanging expertise between specialists.
Flynas, Saudi Arabia’s leading low-cost airline, also signed an agreement with Airbus to purchase 160 new aircraft, including 30 wide-body A330neo aircraft and 130 single-aisle aircraft of various models from the A320 family, bringing the total volume of its aircraft purchase orders to 280 within seven years.
The General Authority for Military Industries was also participating at Farnborough, and Ahmed bin Abdulaziz Al-Ohali, its governor, witnessed the signing of agreements between Saudi Arabian Military Industries, Airbus Helicopters, and Lockheed Martin.
Saudization initiative transforming the workforce and bolstering economic prosperity, experts say
Latest figures show the number of Saudi nationals working in the private sector in June stood at 2.34 million
Updated 26 July 2024
MIGUEL HADCHITY
RIYADH: The Kingdom’s Saudization initiative is not merely a policy but a transformative strategy aimed at reshaping the national workforce and bolstering economic prosperity.
Also referred to as the Saudi Nationalization Scheme, the policy was implemented by the Ministry of Labour in 2011, requiring Saudi companies to hire a set quota of their country’s citizens.
The Nitaqat aspect of the initiative focuses on increasing the percentage of Saudi citizens working in private enterprise and reduce the employment gap with the public sector.
This aligns closely with the government’s Vision 2030, which seeks to empower nationals and enhance their participation in the private sector, thereby reducing dependence on oil revenue and fostering sustainable economic development.
Saudi-based economist Talat Hafiz highlighted in an interview with Arab News that Nitaqat is one of the most important programs that has enhanced participation in the labor market.
He added: “Nitaqat and Nitaqat Mutawar programs have improved the performance of the labor market through providing appropriate job opportunities for the Saudi national labor force in a safe and attractive working environment.”
Since its launch in 2011, Nitaqat has achieved significant milestones, effectively increasing the number of Saudi nationals in the private sector workforce. The latest figures released by the National Labor Observatory showed the number of Saudi nationals working in the private sector in June stood at 2.34 million – an increase of 16,598 since April.
This success is underscored by the proactive measures taken to support Saudization, including regulatory frameworks that incentivize companies to hire and retain local talent.
As a result, there has been a noticeable shift toward employing Saudi professionals who bring not only technical skills but also a deep understanding of local culture, business practices, and regulatory nuances.
Ahmed Boshnak, partner at Bain and Co., said: “One significant contribution of Saudization is the enhancement of local talent development. Through Saudization, there is a focused effort on education and vocational training programs that align with market needs.”
He added: “This equips Saudi nationals with the necessary skills to participate in various sectors, thus increasing their employment prospects and career advancement opportunities.”
Looking ahead
Saudi Arabia is anticipating a substantial influx of young graduates into the job market, with projections suggesting approximately 5 million new entrants by 2030.
Concurrently, the government aims to create 3 million new jobs in the private sector over the next decade, reinforcing its commitment to sustainable economic growth and reducing unemployment rates.
The benefits of hiring Saudi nationals extend beyond meeting regulatory requirements; they encompass leveraging local expertise to navigate business challenges effectively.
Saudi professionals’ proficiency in Arabic and familiarity with local resources facilitate streamlined operations and enhance organizational agility.
Hafiz said: “Saudi nationals have proven their capabilities in the local labor market because they better understand the culture of the Saudi labor market and they have proven to be very hard workers.”
He added: “I believe in the long run, hiring a Saudi citizen could be more effective and less costly to the businesses since businesses can avoid labor’s cost related to hiring non-Saudis.”
Moreover, integrating Saudi talent into the workforce fosters a sense of national pride and ownership, contributing to a more cohesive and productive corporate environment.
Boshnak said: “Saudization encourages private and public sector collaboration. The initiative requires companies to invest in local talent, promoting policies that support the hiring, training, and retention of Saudi nationals. This not only drives employment but also fosters a culture of inclusivity and sustainability within the workforce, leading to long-term economic stability.”
Complementing regulatory efforts, educational initiatives are pivotal in equipping Saudi youth with the skills necessary to thrive in a rapidly evolving job market.
The Fuel program, a collaboration between the Ministry of Communications and Information Technology, Saudi Digital Academy, and Coursera, exemplifies this commitment.
By offering tailored training in digital skills, the program aims to prepare 100,000 Saudi citizens annually for careers in emerging sectors critical to the Kingdom’s digital transformation.
“MCIT and SDA both have played a major role in enhancing Saudization since Saudi Arabia is shifting to digital economy and high tech, which requires huge numbers of Saudis,” Hafiz added.
Furthermore, the Human Resources Development Fund plays a crucial role in supporting Saudization through comprehensive programs that enhance the employability of Saudi nationals.
These initiatives include training, upskilling, and employment assistance, ensuring a steady supply of qualified talent for the private sector.
By collaborating closely with small and medium enterprises, HRDF has facilitated job creation and enhanced local businesses’ competitiveness across diverse sectors. HRDF aims to support job seekers in the private sector through the fund paying a proportion of the employee’s wages, according to its director general, Turki Al-Jawini.
Ryan Alnesayan, partner at Arthur D. Little, noted that from 2016 to 2023, the number of Saudis working in the private sector increased from 1.7 million to 2.3 million, with women’s participation in the workforce rising from 17 percent to 35.3 percent, surpassing the Saudi Vision 2030 target of 30 percent.
He added: “These figures underscore the Saudization initiative’s role in not just increasing employment but also enhancing the quality and diversity of the workforce, positioning Saudi nationals at the forefront of economic growth and development.”
Businesses also play a pivotal role in advancing Saudization by investing in recruitment strategies, HR training, and employee development initiatives.
Organizations like NADIA Global offer tailored solutions to attract, retain, and develop Saudi talent, thereby enhancing workforce capabilities and organizational resilience.
By prioritizing the development of local talent pools, businesses not only comply with Saudization regulations but also contribute to broader socio-economic objectives aimed at achieving sustainable growth and prosperity.
Hafiz noted: “The role of the regulatory frameworks, such as Nitaqat quotas and other programs, have played a significant role in improving Saudization because they have rewarded businesses who are in compliance with the Saudization programs.”
He added: “For example, HRDF has provided programs and products that allow the provision and exchange of guidance, training and empowerment services efficiently and effectively to increase the stability and development of the workforce in the Saudi labor market.”
Arthur D. Little is driving local talent development through initiatives like AFAQ, dedicated to Saudi nationals. Alnesayan explained, adding: “Our tailored mentorship and coaching programs focus not just on filling positions but on grooming future leaders. The goal is clear: attract and elevate Saudi talents to top-tier roles with specialized skills, setting new benchmarks in various industries.”
As Saudi Arabia continues its journey toward economic diversification and global competitiveness, the empowerment of Saudi nationals through Saudization remains a cornerstone of its strategic vision.
By nurturing a skilled and adaptable workforce, the Kingdom not only mitigates economic dependencies but also positions itself as a hub for innovation, entrepreneurship, and technological advancement in the region.
“The future potential of Saudi nationals in driving innovation and entrepreneurship is incredibly promising. Saudization is not just about increasing employment numbers; it’s about cultivating a generation of skilled, innovative leaders,” Alnesayan added.
Startup Wrap – Health, HR, and e-commerce firms eying Saudi expansion after funding rounds
Updated 26 July 2024
Nour El-Shaeri
CAIRO: Startups from across the region and beyond have set a clear path for Saudi expansion after completing successful funding rounds.
UK-based healthtech startup Bioniq is set to leverage its latest $15 million series B funding round to bolster its presence in Saudi Arabia.
With a current valuation of $75 million, Bioniq aims to make its personalized supplements based on blood test data and patented algorithms available in key cities in Saudi Arabia as a significant portion of the funding is allocated for the Middle East region.
“Saudi Arabia is an absolute focus as is the further integration and localization of our offerings,” Vadim Fedotov, CEO and co-founder of Bioniq, told Arab News.
“Our strategic partnership with Al Borg Diagnostics is pivotal in this effort, enabling us to enhance our reach nationwide and deliver tailored health solutions to the local population,” he added.
The partnership with Al Borg, a provider of diagnostic health services in the Kingdom, made Bioniq’s blood test panel available in 28 Saudi cities.
The company plans to embed its solutions within athletic organizations and explore collaborations with governmental health initiatives.
“Additionally, we have further integrations in the pipeline with Saudi Arabia’s leading medical institutions and medical insurance providers,” he added.
Bioniq’s expansion in the Middle East does not stop at Saudi Arabia. The company aims to solidify its position as the leading premium personalized supplement brand across the region.
“Given the dynamic growth of the region, especially in the health and wellbeing sector, a significant portion of our recent funding round will be dedicated to our Middle East expansion including strengthening our local office,” Fedotov said.
Vadim Fedotov, CEO and co-founder of Bioniq. Supplied
According to the CEO, the expansion strategy includes broadening the firm’s geographical reach and enhancing service offerings such as laboratory testing, client support, and strategic on-site partnerships with top medical and athletic institutions.
The company has also established long-term partnerships with key opinion leaders and public figures in the region, with announcements expected soon.
The oversubscribed round was led by Principal Investors HV Capital and Unbound, both leading European VCs. Bioniq also aims to utilize the funding to boost its expansion into the US market.
UAE-based HR tech Ogram raises new funding for Saudi expansion
UAE-based human resources tech startup Ogram has secured new funding from Oraseya Capital, the venture capital arm of Dubai Integrated Economic Zones Authority, along with Aditum Investment Management and Everywhere VC, to support its expansion plans in Saudi Arabia.
Founded in 2017 by Karim Kouatly and Shafiq Khartabil, Ogram is a digital staffing marketplace that allows businesses to book and manage staff on-demand.
The company, which launched in Greece in 2023, previously closed a $3 million series A funding round in 2022. Ogram is also in the process of closing its series B round and potential merger and acquisition activities by the fourth quarter of the year.
Kemitt expands into Saudi Arabia after new funding round
Egypt-based e-commerce platform Kemitt has expanded into Saudi Arabia following an undisclosed funding round.
Founded in 2018 by Mahmoud Fouad, Mohamed Rashwan, and Mohamed Hedayat, Kemitt connects product and furniture designers with consumers and handles manufacturing, overhead, and last-mile logistics.
The recent funding will be used to enhance the platform’s user interface, scale logistics and customer service operations in Saudi Arabia, diversify its product portfolio, and establish local partnerships.
Saudi startup TechMal secures $1m in pre-seed funding
Saudi-based startup TechMal has raised $1 million in a pre-seed investment round led by Al Majidiya Investment Co., along with other investors.
Established in 2024, TechMal is a micro-consumer finance company licensed by the Central Bank of Saudi Arabia, offering financing solutions for the residential rental sector.
The company enables tenants to convert annual or semi-annual rental payments into manageable monthly installments through the Ejar platform.
Pathfinder raises $325m from Silver Rock Group ahead of NASDAQ listing
UAE-based retail technology solutions provider Pathfinder has secured a $325 million investment from Silver Rock Group ahead of its planned NASDAQ listing.
Founded in 2000 by Ahmed Hussain, Kristin MacDermott, and Sadique Ahmed, Pathfinder offers solutions to enhance customer engagement and drive business success.
Silver Rock Group will provide the funding over the next three years, starting in the fourth quarter of 2024, to support the continuous development and global rollout of the RetailGPT platform.
UAE fintech Mamo secures $3.4m in funding
UAE-based fintech startup Mamo has closed a $3.4 million funding round with participation from existing investor 4DX Ventures, the Dubai Future District Fund, and Cyfr Capital.
Co-founded by Asim Janjua, Imad Gharazeddine, and Mohammad El-Saadi, Mamo supports small and medium-sized businesses by consolidating their payment collection, corporate cards, and expense management needs.
The newly raised capital will be used to expand Mamo’s product offerings within the UAE and support its regional expansion efforts.
Zyp Technologies secures $1.5m pre-series A funding led by Shorooq Partners
Pakistan’s mobility startup Zyp Technologies has raised $1.5 million in a pre-series A round led by UAE-based VC fund Shorooq Partners, with participation from existing investor Indus Valley Capital and several angel investors.
Founded in 2022 by Hassan Khan and Imran Afzal, Zyp Technologies specializes in electric motorcycles designed for deliveries, equipped with advanced fleet management software.
The funding will enable Zyp Technologies to deploy more than 60 battery swap stations and launch over 1,000 Zyp Utility Motorcycles in Pakistan over the next 12 months.
