{"id":81984,"date":"2024-01-17T00:00:00","date_gmt":"2024-01-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/01\/17\/saudi-isnt-slowing-down-on-economic-reform-al-ibrahim-says-in-davos\/"},"modified":"2024-01-17T00:00:00","modified_gmt":"2024-01-17T00:00:00","slug":"saudi-isnt-slowing-down-on-economic-reform-al-ibrahim-says-in-davos","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/01\/17\/saudi-isnt-slowing-down-on-economic-reform-al-ibrahim-says-in-davos\/","title":{"rendered":"Saudi isn\u2019t slowing down on economic reform, Al Ibrahim says in Davos"},"content":{"rendered":"

Good morning, friends. <\/strong>The domestic news agenda this morning is being driven out of Davos, not Riyadh: Top government officials and business figures are braving the cold and snow to attend the World Economic Forum, which runs through Friday.<\/p>\n

We saw three big messages come out of Davos yesterday:<\/strong><\/p>\n

<\/a> #1- We\u2019re not going to take our foot off the pedal when it comes to economic <\/strong>transformation<\/strong>, Minister for Economy and Planning Faisal Al Ibrahim told Bloomberg in an outdoor, stand-up interview (watch, runtime: 7:21<\/a>). Al Ibrahim, always well-spoken in engagements with foreign media, thinks \u201cthere are a lot of opportunities to look forward to\u201d globally despite macro challenges in many economies and talked up a just economic transition. <\/p>\n

Delivery on Vision 2030 is not just key for the economy at home, it\u2019s going to create a <\/strong>stronger region, he said, \u201cand we\u2019re doubling-down on our diversification plans,\u201d <\/strong>including a target to see foreign direct investment account for 5.7% of the economy by 2030. There\u2019s plenty of momentum among foreign investors interested in the Saudi story, he said, as underscored by quarter-on-quarter improvement in FDI throughout last year.<\/p>\n

#2- We\u2019ll recognize Israel \u2014 if there is peace and a state for the Palestinians. <\/strong>\u201cWe agree that regional peace includes peace for Israel, but that could only happen through peace for the Palestinians through a Palestinian state,\u201d Foreign Minister Prince Faisal bin Farhan said<\/a> on a panel yesterday. <\/p>\n

#3- The US doesn\u2019t see what\u2019s being now being called \u201cthe Red Sea conflict\u201d <\/strong>becoming a<\/a><\/strong>global conflict<\/a><\/strong>. <\/strong>White House National Security Advisor Jake Sullivan said that how long tensions in the Red Sea last and \u201chow bad it gets\u201d hinge on whether US allies help it pressure Iran to rein-in the Houthis. Sullivan also said Washington wants to see relations between the Arab countries and Israel normalize, but said little of winding down Israel\u2019s war in Gaza. <\/p>\n

Also in Davos:<\/strong><\/p>\n

ON ENERGY:<\/strong> Investment Minister Khalid Al Falih highlighted the government\u2019s ongoing commitment to provide \u201cenergy solutions, energy reliability and energy affordability to the rest of the world.\u201d Al Falih was speaking at a panel headlined \u201cGulf Economies: All In\u201d (watch, runtime: 47:48<\/a>). He said the government is offering what he referred to as a \u201cmix of energy\u201d that would not shun oil and gas and would include green and blue hydrogen among other cleaner fuels<\/p>\n

ON FDI: <\/strong>The GCC attracts FDI at more than twice the pace of the global average rate, \u201cwhen you compare it and normalize it to GDP,\u201d Al Falih said. KSA is at a turning point that would see it draw in higher levels of FDI, highlighting the importance of FDI in bringing \u201cknow-how, access to market, and global integration,\u201d he said.<\/p>\n

ON THE BRICS: <\/strong>The Kingdom is not a member of the BRICs club just yet, Reuters<\/a> reported, citing statements by Commerce Minister Majid Al Kasabi during a panel. \u201cSaudi Arabia has been invited to attend BRICs, we have not yet officially joined BRICs,\u201d he said as he clarified where the Kingdom stands after the proposed joining date of 1 Jan expired. <\/p>\n

ON REGULATION: <\/strong>Regulators should think smart when deciding on regulations for non-bank financial institutions, Finance Minister Mohamed Al Jadaan said at the Regulating Non-Banks panel yesterday (watch, runtime: 44:09<\/a>). \u201cWe need to be very careful not to apply regulatory frameworks that apply to banks to non-bank financial institutions, because that could potentially kill innovation,\u201d said Al Jadaan.<\/p>\n

HAPPENING TODAY in Davos:<\/strong><\/p>\n

Finance Minister Mohammed Al Jadaan will speak about the importance of resilience <\/strong>for businesses to withstand shocks in a session entitled Resilience: What it means and what to do a<\/a>bout it<\/a> at 11am KSA.<\/p>\n

Minister of State for Foreign Affairs and climate envoy Adel Al Jubair<\/strong> will take to the stage in a session headlined Bold steps for a sustainable MENA<\/a> at 7:30pm KSA.<\/p>\n

PIF WATCH-<\/p>\n

#1- More Heathrow shareholders want to exit alongside Ferrovial<\/strong>, and the Financial Times thinks that could cast a shadow over a GBP 2.4 bn agreement that would see the Public Investment Fund and Ardian buy Ferrovial\u2019s 25% stake in the airport. A Canadian pension fund, sovereign fund from Singapore, and a UK pension fund holding a combined 35% are now looking to exit by exercising their tag-along rights. <\/p>\n

The catch? <\/strong>PIF doesn\u2019t seem to want more shares, and while Ardian might, it doesn\u2019t have the firepower to buy 35%. \u201cThe Saudis plan to stick with their original plan to buy 10 per cent and do not want to increase their stake in the airport beyond this,\u201d the salmon-colored paper reports. The transaction \u201ccould collapse if all the shareholders cannot find buyers.\u201d PIF and Ardian could bring in a third investor to help them take on the transaction. <\/p>\n

SOUND SMART- <\/strong>If a other shareholder exercises tag-along rights, the buyer must take their shares at the same price it offered other shareholders \u2014 or walk away. <\/p>\n

<\/a> #2-<\/strong>PIF is mulling<\/strong> \u201csizeable investment\u201d in semiconductors + space this year:<\/strong> The Public Investment Fund (PIF) is looking to pour significant capital into both the semiconductor and space industries this year, Communications and Information Technology Minister Abdullah Alsawaha \u2014 who is also chairman of the Space Agency \u2014 told Bloomberg<\/a> in an interview yesterday. \u201cThey plan to make an announcement on a particular champion within space to lead the Saudi efforts,\u201d he said, declining to provide further details.<\/p>\n

How big? <\/strong>He said the Kingdom sees the new space economy as the next trn-USD market. \u201cThe Kingdom is very bullish on not only becoming a regional leader in this space but also a global leader. The ambition by 2030 is to definitely establish regional leadership and then move on by 2040 to global leadership,\u201d Alsawaha said.<\/p>\n

#3-PGA Tour Commissioner Jay Monahan is reportedly in town to meet with PIF governor <\/strong>Yasir Al-Rumayyan<\/strong> in a bid to reach a definitive agreement over Liv Golf \/ PGA tour \/ European tour tie-up, Sports Business Journal<\/a> reported yesterday, citing unnamed sources. The reported visit comes a few weeks after the PIF and PGA Tour agreed to extend talks into 2024 after failing to agree on merger terms before a 31 December deadline.<\/p>\n

\n

CAPITAL MARKETS-<\/p>\n

<\/a> #1- <\/strong>Saudi <\/strong>German Health<\/strong> hires Al Rajhi Capital to quarterback its SAR-denominated <\/strong>sukuk issuance:<\/strong> Tadawul-listed Saudi German Health is gearing up to issue the first tranche of its recently-launched sukuk program through a public offering, it said in a Tadawul regulatory filing<\/a>. Proceeds from the issuance will be used for general corporate purposes, the statement reads. Al Rajhi is acting as financial advisor and sole arranger on the transaction. The company is yet to announce a timeframe for the sale, which has received Capital Market Authority approval.<\/p>\n

The details: <\/strong>The prospectus (pdf)<\/a> allows for a program of up to SAR 1.5 bn. Subscribers will need to buy blocks of SAR 5k.<\/p>\n

<\/a> #2-<\/strong>Another day, another IPO in the pipeline:<\/strong> Online cosmetics retailer Nice One Cosmetics<\/a><\/strong>is auditioning bankers for a potential Tadawul listing, Bloomberg<\/a> reported, citing sources it says have knowledge of the company\u2019s plan. Talks are still ongoing with the size and timing of the share sales undetermined, the sources said.<\/p>\n

AND- More than 13 Saudi startups are eyeing IPOs in the upcoming two years, Saudi <\/strong>Venture <\/strong>Capital (SVC) Nabeel Koshak told Asharq Business<\/a> in an interview yesterday, without providing further details. <\/p>\n

\n

SPORTS-<\/p>\n

<\/a> #1- <\/strong>IN SPORTS, it was a stunning comeback for the Green Falcons<\/strong>, who topped Oman 2-1 in their 2023 AFC Asian Cup opener yesterday at Qatar\u2019s Khalifa International Stadium. Confusion over the VAR that saw a goal by defender Ali Al Bulayhi disallowed in injury time before it was awarded in the last minutes. <\/p>\n

Next up: <\/strong>The national team takes on Kyrgyzstan on Sunday, 21 January, at 8:30 pm KSA.<\/p>\n

#2- UFC Saudi Arabia might be pushed back to June <\/strong>as the Kingdom reportedly looks for a \u201cmore entertaining fight card,\u201d MMA pundit Ariel Halwani said on MMA Hour<\/a>.<\/p>\n

Not so happy with what\u2019s on the table: <\/strong>\u201cI was told that the reason for the postponement is because they just want \u2014 the powers that be in Saudi Arabia \u2014 a, how should we put it, more entertaining fight card. A deeper fight card with bigger names on it. [They] weren\u2019t too pleased with what was being offered. So, it is being moved to later in the year, June,\u201d he said. <\/p>\n

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ALSO WORTH KNOWING-<\/p>\n

DATA POINT-<\/strong>Cement exports plunged 34.7% <\/strong>y-o-y<\/strong> in December<\/strong> to 543k tons, according to a report (pdf)<\/a> from Aljazira Capital.<\/p>\n

PSA #1- All government institutions must give their employees four to five-day <\/strong>holidays for each Eid<\/strong>, according to a decision approved by the cabinet yesterday. No further information was provided. <\/p>\n

PSA #2- Applications for the Culture Ministry\u2019s <\/strong>emerging new media artists program (pdf)<\/a><\/strong>are now open until 29 April. The one-year training program, which will be offered in the Diriyah Art Futures institute<\/a>, includes personal mentorship from renowned digital artists on new media arts.<\/p>\n

WEATHER- <\/strong>Expect clear skies in <\/strong>Madinah today <\/strong>and sun with cloudy periods in Riyadh. Prepare for a little wind in Dammam today, and 25% chance of light rain tomorrow. <\/p>\n