Tech and tourism under discussion at Saudi-Slovenia business forum

The Federation of Saudi Chambers hosted the Saudi-Slovenian Business Forum on Dec. 8. SPA

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Updated 09 December 2024

MOHAMMED AL-KINANI

December 09, 2024 13:20

Tech and tourism under discussion at Saudi-Slovenia business forum

Forum brought together over 60 Slovenian companies from nine key sectors and a delegation from the Saudi Chamber of Commerce and Industry
Two countries enjoy strong trade ties, with exports from Slovenia to Saudi Arabia rising from $18.4 million in 1995 to $133 million in 2021

Updated 09 December 2024

MOHAMMED AL-KINANI

December 09, 2024 13:20

JEDDAH: Saudi Arabia and Slovenia are set to deepen economic ties in technology, tourism, and automotive industries following discussions at a business forum in Riyadh.

The Federation of Saudi Chambers hosted the Saudi-Slovenian Business Forum on Dec. 8, with participation from the Kingdom’s Minister of Economy and Planning Faisal Al-Ibrahim, and the European country’s Minister of Economic Development and Technology Matjaz Han.

The forum also brought together over 60 Slovenian companies from nine key sectors and a delegation from the country’s Chamber of Commerce and Industry, all seeking to tap into investment opportunities under the Kingdom’s Vision 2030 economic diversification initiative, and foster new business collaborations, according to the Saudi Press Agency.

The two countries enjoy strong trade ties, with exports from Slovenia to Saudi Arabia rising from $18.4 million in 1995 to $133 million in 2021, according to the Observatory of Economic Complexity trade data platform.

Highlights from Minister of Economy and Planning’s opening remarks at the Saudi-Slovenian Business Forum. pic.twitter.com/udufk5GZR3

— وزارة الاقتصاد والتخطيط (@MEPSaudi) December 9, 2024

Al-Ibrahim highlighted progress since last year’s visit to Slovenia, including a memorandum establishing a joint business council and opening new avenues for economic cooperation and investment, SPA reported.

The Kingdom’s minister underscored the synergies between the two economies and encouraged Slovenian businesses to engage in Saudi Arabia’s transformative Vision 2030 initiatives.

He also emphasized the vital role of the private sector and called for a sustainable roadmap for economic cooperation to unlock additional investment opportunities.

For his part, Han underlined his country’s strong export-driven economy, highlighting that exports account for 80 percent of its gross domestic product. He also emphasized the country’s expertise in the automotive industry, engineering, infrastructure, and its vibrant tech ecosystem, encompassing 2,000 companies specializing in artificial intelligence, digitization, and cybersecurity.

The Slovenian minister went on to underscore opportunities in his country’s sports and tourism sectors, encouraging Saudi investors to explore these fields.

Waleed Al-Orainan, secretary-general of the FSC, affirmed that establishing the Joint Business Council reflects both nations’ commitment to strengthening economic ties, remarking that trade between Saudi Arabia and Slovenia grew by 192 percent in 2023, reaching $230 million.

The forum featured presentations on investment opportunities in the Kingdom and Slovenia, success stories of Slovenian businesses in the Saudi market, and insights into the European country’s tourism and biotechnology sectors.

Saudi insurance sector’s outlook stable in 2025: S&P Global

Updated 10 December 2024

Nirmal Narayanan

December 10, 2024 17:15

Saudi insurance sector’s outlook stable in 2025: S&P Global

Insurance industry is projected to expand at a compound annual growth rate of 5.2% through 2028
Larger players are capturing an increasing share of net profits in the Saudi market

Updated 10 December 2024

Nirmal Narayanan

December 10, 2024 17:15

RIYADH: Saudi Arabia’s insurance sector is set to remain resilient in 2025, with expected growth in top-line revenue between 10 percent and 15 percent, according to a new analysis.

In its latest report, credit rating agency S&P Global revealed that the net profit of insurance companies in the Kingdom grew by 17 percent in Q3 2024, compared to the same period in 2023.

The country’s insurance industry is projected to expand at a compound annual growth rate of 5.2 percent through 2028, with its market size expected to reach SR83.7 billion ($22.28 billion), according to data analytics firm GlobalData.

The growth is attributed primarily to the health and motor insurance sectors, which are expected to contribute 86 percent of total gross written premiums.

“S&P expects its ratings on Saudi insurers to remain stable in 2025, consistent with the stable outlook for all rated insurers in the Kingdom,” the US-based credit agency stated.

The report highlighted that larger players are capturing an increasing share of net profits in the Saudi market, while smaller insurers are experiencing a decline in profitability.

“The largest insurers, Bupa and Tawuniya, now account for more than 50 percent of the market’s insurance revenue in Q3 2024,” S&P Global noted. The top five insurers together generated nearly three quarters of the market’s total revenue in Q3 2024, an increase of approximately 1 percent compared to the same period in 2023.

As competition intensifies, these five major players now account for around 80 percent of total profits, leaving the remaining 21 insurers to share just 20 percent of the profits.

The report also pointed out that medical and motor insurance accounted for over 80 percent of total insurance revenue in Q3 2024. However, motor premiums saw a slight decline of 2.5 percent compared to Q3 2023, amid growing price competition.

Despite this, the report indicates that the overall penetration of insurance in Saudi Arabia continues to rise, though it remains relatively low compared to other markets.

S&P Global’s August report highlighted that Saudi Arabia is expected to drive growth in the Gulf Cooperation Council region’s insurance sector, particularly through the introduction of mandatory medical coverage and efforts to reduce the number of uninsured vehicles.

These measures are expected to create additional demand for insurance and generate higher premium income.

“Insurance penetration in the Kingdom is expected to increase, driven by the market's strong growth potential. When compared to non-oil GDP, the depth of the insurance market is becoming more apparent,” S&P Global concluded in its latest outlook.

According to data compiled by Arab News from Bloomberg, Saudi Arabia’s insurance sector showed a strong performance in the first half of 2024, with earnings rising by 25 percent, reaching SR2.2 billion, compared to the same period in 2023.

Topics: Insurance S&P Global Saudi Arabia Saudi insurance sector

COP16: World Bank launches drought risk and resilience platform to address global crisis

Updated 10 December 2024

Nadin Hassan

December 10, 2024 16:54

COP16: World Bank launches drought risk and resilience platform to address global crisis

Drought Risk and Resilience Assessment aims to strengthen decision-making frameworks and governance
Platform is designed to provide governments with tools to better understand droughts

Updated 10 December 2024

Nadin Hassan

December 10, 2024 16:54

RIYADH: A new platform designed to help governments monitor and manage drought risks has been launched by the World Bank at COP16 in Riyadh, as concerns over the global impact of water scarcity grows.

The Drought Risk and Resilience Assessment aims to strengthen decision-making frameworks and governance to help tackle this growing issue.

The platform is designed to provide governments with tools to better understand droughts, create mechanisms for ongoing action, and anticipate and manage future risks.

It comes after Saudi Arabia used COP16 to announce the Riyadh Global Drought Resilience Partnership, which aims to provide early warning systems, training, and capacity building for 80 countries most vulnerable to a lack of water.

Speaking at the meeting of the Convention to Combat Desertification, the World Bank’s Global Director of Water Saroj Kumar Jha said his institution’s platform will be “built on international best practices,” harnessing expertise from governments, scientists, and practitioners.

“Droughts do not occur suddenly but develop gradually over time,” he said. “What is important is that we need a system by which different parts of the government are able to collect the data.”

Jha added that most developing countries lack national drought monitors to systematically collect data on factors such as soil, crops, water, rainfall, temperature, humidity, and weather.

He emphasized that establishing these monitors would become a key focus area moving forward.

Osama Faqeeha, Saudi Arabia’s deputy minister of environment, highlighted the global urgency of addressing droughts, noting that projections suggest more than half of the world’s population could face water scarcity in the coming decades.

He pointed to the increasing spread of droughts to new regions, particularly Latin America, where 35 percent is now exposed to the phenomenon.

“What the outlook is telling us is that maybe this number is expected to double or even more,” Faqeeha said. He also warned about the economic and social consequences of drought, including its impact on food prices, migration, and economic stability.

The deputy minister also emphasized that 80 percent of the impact of water scarcity falls on agricultural communities, particularly small-scale farmers. He called for more global action to combat drought, underscoring that Saudi Arabia has long relied on innovative approaches to water management.

“We have to realize that 90 percent of freshwater is in soil, not in the rivers, not in the lakes — it’s in the soil, and when drought hits, the soil dries and life is taken away from it,” Faqeeha said, adding that every dollar put in resilience and preparedness saves $5 to $10 from the response.

Global call to action

Speakers at COP16 emphasized the interconnected nature of the crisis and the urgent need for collaborative solutions.

Valerie Hickey, global environment director at the World Bank, highlighted the economic toll of environmental degradation, saying: “Globally, since 1995, the world has lost 20 percent of its natural capital per capita,” she said, adding that land degradation alone costs the global economy 10 percent of its gross domestic product annually.

The Kingdom’s efforts to tackle the issue also align with broader environmental goals, including its Saudi and Middle East Green Initiatives, which aim to combat desertification and expand vegetation cover.

Ayman Ghulam, CEO of the National Center of Meteorology, elaborated on Saudi Arabia’s proactive response to the challenges posed by sand and dust storms, which are worsening due to climate change.

These include a dedicated regional center focusing on monitoring and mitigating the effects of storms, while the Climate Change Center addresses broader environmental impacts.

The cloud seeding program, another critical initiative, works to enhance rainfall and combat aridity, supporting water resource management and reducing the vulnerability of affected areas.

“These efforts demonstrate the Kingdom’s commitment to sustainable development, environmental conservation and addressing the challenges of climate change and sand and dust storms, and drought and land degradation,” Ghulam said.

Faqeeha urged global stakeholders to act decisively. “The time to act is now,” he said, emphasizing that resilience requires partnerships across governments, NGOs, and the private sector.

By fostering collaboration and leveraging innovative solutions, the initiatives announced at COP16 aim to address one of the most pressing global challenges.

Topics: COP16 Green & Blue World Bank Drought

Closing Bell: Saudi main index continues upward trend, closes at 12,194

Updated 10 December 2024

Nirmal Narayanan

December 10, 2024 16:20

Closing Bell: Saudi main index continues upward trend, closes at 12,194

Parallel market Nomu edged up by 54.76 points to close at 31,557.61
MSCI Tadawul Index gained 15.72 points to 1,532.32

Updated 10 December 2024

Nirmal Narayanan

December 10, 2024 16:20

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward trend for the third consecutive day on Tuesday, as it gained 96.24 points or 0.80 percent to close at 12,193.64.

The total trading turnover of the benchmark index was SR6.95 billion ($1.85 billion), with 110 of the listed stocks advancing while 118 declining.

The Kingdom’s parallel market Nomu also edged up by 54.76 points to close at 31,557.61, while the MSCI Tadawul Index gained 15.72 points to 1,532.32.

Anaam International Holding Group was the best-performing stock of the day. The company’s share price surged by 6.77 percent to SR1.42.

Saudi Research and Media Group was another top gainer, with the firm’s share price increasing by 4.23 percent to SR286.

The share price of Makkah Construction and Development Co. also rose by 4.20 percent to SR119.

Conversely, the share price of Banan Real Estate Co. slipped by 9.88 percent to SR7.39.

On Dec.10, shares of Jahez International Co. for Information Systems Technology debuted on Saudi Arabia’s main exchange. The company’s share price, however, slipped by 9.04 percent to SR34.20.

On the parallel market, Dar Almarkabah for Renting Cars Co. was the best performer, with its share price increasing by 13.42 percent to SR60.

Saad Hussain Bin Dajam Group announced that it received approval from the Kingdom’s Capital Market Authority to float 2.05 million shares, or 20 percent of the firm’s capital on Nomu.

According to a statement, the offer will be confined to qualified investors stipulated in the glossary of defined terms used in the CMA regulations and rules.

The statement added that the authority’s approval is valid six months from the resolution date.

The CMA also approved the request of Twareat Medical Co. to register its shares on the parallel market.

Established in Khobar in 2010, the firm provides medical care services across the Kingdom, including emergency medicine, radiology, dermatology, and pediatrics.

Topics: Closing Bell Saudi stock exchange Tadawul All Share Index (TASI)

Arab Fund to launch observatory to address water scarcity

Updated 10 December 2024

Reem Walid

December 10, 2024 15:34

Arab Fund to launch observatory to address water scarcity

Observatory will foster collaboration and attract investments to solve the region's urgent water management challenges
Fund reaffirmed its commitment to enhancing regional water and food security

Updated 10 December 2024

Reem Walid

December 10, 2024 15:34

RIYADH: The Arab Fund for Economic and Social Development is set to launch a new Water Observatory aimed at boosting investments in sustainable water solutions across the region.

Announced at the 16th session of the UN Convention to Combat Desertification’s Conference of the Parties in Riyadh, this initiative is designed to improve data collection and accessibility on water-related projects.

The observatory will provide vital data and insights to stakeholders, helping them make informed decisions to address the growing challenges of water scarcity.

The initiative is aligned with the Arab Fund’s ongoing commitment to combat water scarcity, a critical issue in a region where 12 countries face severe water shortages, each with less than 500 cubic meters of water per capita annually.

“Addressing water scarcity requires billions in investments, but these resources must be strategically allocated to create meaningful, long-term impact,” said Merza Hassan, senior adviser to the chairman of the Arab Fund for Economic and Social Development.

“By collaborating with regional and global partners from the public and private sectors, as well as financial institutions, we can address overconsumption and ensure water sustainability for future generations.”

The fund’s statement emphasized that the observatory will foster collaboration and attract investments to solve the region's urgent water management challenges.

At COP16, the fund reaffirmed its commitment to enhancing regional water and food security, noting its support for the Riyadh Green Initiative. This is part of a broader $10 billion pledge by the Arab Coordination Group to promote sustainable development in the region.

In addition, the fund hosted two events. One focused on advancing water management policies, exploring innovative financing mechanisms, and fostering international partnerships. The other brought together private sector leaders to share strategies and experiences on successful water-related investments, emphasizing the essential role the private sector plays in addressing water scarcity.

Moreover, the Arab Fund held high-level bilateral meetings with ACG member states, senior government officials, and representatives from regional and global development organizations, including UN agencies. These discussions aimed to explore potential partnerships and co-financing opportunities to advance the Sustainable Development Goals across the Arab region.

To date, the Arab Fund has financed 671 projects totaling 10.72 billion Kuwaiti dinars ($34.87 billion), benefiting 22 countries.

Topics: COP16 Green & Blue Arab Fund

Lebanon dollar-denominated bond rally sparks hope for reforms

Updated 10 December 2024

Miguel Hadchity

December 10, 2024 14:43

Lebanon dollar-denominated bond rally sparks hope for reforms

Lebanon’s dollar-denominated bonds surged by 30% in 10 days, reaching 13 cents to the dollar
Bond rally has laid the groundwork for potential economic recovery by boosting confidence in Lebanon’s financial markets

Updated 10 December 2024

Miguel Hadchity

December 10, 2024 14:43

RIYADH: A rally in Lebanon’s dollar-denominated bonds a day after Syrian militant groups removed President Bashar Assad from power shows growing optimism for economic and governance reforms in the region, according to an expert.

Makram Makarem, a senior director at Beirut-based Investment and Capital Bank, told Arab News that the prospect of reduced external influence in Lebanon through Iranian proxies in Syria, as well as the weakening of Hezbollah, has boosted investor confidence.

Lebanon’s dollar-denominated bonds surged by 30 percent in 10 days, reaching 13 cents to the dollar on Dec. 9, data from Bloomberg Terminal showed.

At least nine of the country’s dollar bonds, maturing between 2026 and 2037, traded above 12 cents, a significant rise from their average for much of the year.

The 2029 bonds saw the largest increase, rising 2.03 cents to 12.76 cents on the dollar — the highest since December 2022, Reuters reported.

Although still significantly below face value, the bonds have rallied multiple times since Israel’s recent military strikes in Lebanon.

“This optimism stems from expectations of reduced political interference and greater focus on governance,” said Makarem.

The financial adviser at the Lebanese institution explained that the bond surge is driven by a combination of geopolitical and economic factors.

The removal of President Assad’s government has disrupted a crucial supply route for Hezbollah, the Iran-backed Lebanese militia designated as a terrorist group by the US.

He pointed out that this, coupled with growing expectations of a breakthrough in Lebanon’s long-stalled presidential election, has improved investor sentiment.

While the outlook is promising, Lebanon’s entrenched corruption and political inefficiencies pose challenges, requiring strong reforms and sustained international support for meaningful progress, he added.

On the economic front, Makarem underlined that ongoing state debt restructuring efforts and historical recovery rates for defaulted bonds, which typically range from 20 percent to 50 percent, “indicate that current bond levels are undervalued, with recovery estimates projected between 20 percent and 30 percent.”

Additionally, rising gold prices — which are positively correlated with Lebanon’s recovery prospects due to the country’s gold reserves — along with restructuring efforts in the banking sector, have raised growth expectations.

“However, sustaining this sentiment will depend on Lebanon’s ability to implement reforms and navigate its entrenched political and economic challenges,” he added.

Since Lebanon defaulted on its international debt in 2020, the nation has endured a severe economic crisis marked by hyperinflation, poverty, and political deadlock. With a caretaker government in place since 2022 and ongoing presidential election failures, significant reforms still need to be made.

The bond rally has laid the groundwork for potential economic recovery by boosting confidence in Lebanon’s financial markets.

“Lebanon’s broader recovery hinges on addressing systemic challenges like hyperinflation, a weak currency, and fragile institutions,” Makarem said, warning that without structural reforms and effective governance, the rally is unlikely to translate into sustained economic improvement.

Despite Lebanon’s dollar bonds nearly doubling from the average, as highlighted by Makarem, they remain almost 50 percent below their post-default highs, reflecting ongoing concerns about the country’s ability to achieve lasting financial stability and implement necessary reforms.

Topics: Lebanon Bond market Debt market Syria

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Tech and tourism under discussion at Saudi-Slovenia business forum

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