Special Custom G20 Edition - English by Forbes Middle East

SPECIAL CUSTOM G20 EDITION SPECIAL CUSTOM G20 EDITION

Ahmed Al Khateeb Minister of Tourism for Saudi Arabia

“Saudi Arabia is ambitious and our young tourism sector is no exception.”

OPEN FOR

BUSINESS SAUDI’S FIRST MINISTER OF TOURISM IS WORKING TO ATTRACT INVESTMENT INTO A PROMISING SECTOR.

OMAN..................................OMR 3

BAHRAIN............................. BHD 3

UAE...................................... AED 30

OTHERS.......................................$8

KUWAIT........................... KWD 2.5

SAUDI ARABIA....................SAR 30

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Special Custom G20 Edition

6 I Sidelines Teamwork By Claudine Coletti

I LEADERBOARDS 10 16

I G20: Facts, Figures, And Key Issues I Who Are The G20 Leaders? I Snapshot: B20 I Pandemic-Hit G20 Economies May Decline 4%

18 To $66 Trillion This Year

I The First Saudi Women To… I G20 Rich List I Middle East IPOs In 2020 So far

I Group Effort

22 24

The G20 Leaders’ Summit may be held over just two days, but it represents over a year’s worth of work, organization, and negotiation for the secretariat behind the scenes and many other stakeholders.

C O N T E N T S

By Claudine Coletti

40 I Makkah’s Vital Contribution To Saudi’s Economy Makkah plays a vital role in Saudi Arabia’s economy, with around 10 million international visitors hosted every year spending an estimated $20.1 billion, according to Mastercard’s Global Destination Cities Index 2019. By Nermeen Abbas

I THOUGHT LEADERS 33 I COVID-19 And The Next Cycle Of Riyadh By Professor Greg Clark

42 I Saudi Arabia’s Vision 2030 Has Had A Significant Impact Through RETT And VAT Changes By Michael Camburn

103 I The Road To 5G Leads The Way To Diversification By Fadhel Isa

111 I Leading In Innovation And Artificial Intelligence By Mashael Al-Zaid F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Special Custom G20 Edition

C O N T E N T S

I SAUDI ARABIA IN FOCUS 72 88 96

I Saudi Arabia’s Top Listed Companies I Saudi Arabia’s Top Family Businesses I Saudi Arabia’s Most-Valuable

Insurance Companies 98

I Top 10 International CEOs Heading

Saudi Companies 100 I Saudi Arabia’s Most-Funded Startups 104 I Saudi Arabia’s Power Businesswomen 2020 106 I The 10 Most Successful Saudi Female Entrepreneurs Behind Homegrown Brands 82

I Resilient Reform

Although this year has brought challenges, Saudi’s banking industry remains strong thanks to digitalization and investment. Tareq A. Al-Sadhan, CEO of Riyad Bank, has had a front-row-seat to the industry’s transformation.

By Jason Lasrado

I FORBES LIFE 112 I Saudi Arabia Bets On Sustainable Agricultural And Rural Development For Tourism

As it continues on its path to becoming a significant international tourist destination, Saudi Arabia is recognizing the agricultural sector as being a key contributor for experiential tourism. By Fouzia Azzab

114 I Best Tourist Destinations In Saudi Arabia Saudi Arabia has a cultural heritage dating back thousands of years, with many of the country’s sites registered as UNESCO World Heritage sites. Here are some of its most notable historical destinations. By Fouzia Azzab F O R B E S M I D D L E E A S T.CO M

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106 NOVEMBER 2020

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Special Custom G20 Edition

•

INSIDE

•

C O N T E N T S

34 I Open For Business Ahmed Al Khateeb, Saudi’s first Minister of Tourism, is working to attract investment into a promising sector, with an estimated $67 billion required over the next 10 years. As the kingdom’s tourism industry grows, what more does it need? By Claudine Coletti

F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Sidelines

FORBES MIDDLE EAST

Teamwork

or the leaders of the world’s biggest and most influential economies, the annual G20 Leaders’ Summit allows them to debate, negotiate, and lay out plans for the future considering international interests as a cohesive whole—it’s an opportunity for teamwork. It can also be a heated forum to take a public standpoint for or against proposals put forward. At the very least, it’s an interesting get together, not least for those of us watching. Past summits have had issues such as financial crises, conflicts, and climate change as topbilling topics, with some of the G20’s more controversial attendees taking headline-grabbing stances. For this year, despite there being a wide range of social and economic subjects on the agenda, there can be no doubt what the main topic of conversation will be—2020 will be forever remembered as the year of COVID-19. Among many other things, this year’s summit comes amidst a second wave of pandemicdriven national lockdowns, off the back of a contentious US presidential election, and on the cusp of the UK leaving the EU. Wild fires, floods, and outrage have spread across a number of the G20 nations, and for some of them riots and protests have been common sights for much of the year. Governments across the world have been tested to near-breaking point, and many international relationships are tense. The G20 members represent the voices of 4.6 billion people. Let’s hope they listen to each other. For all the challenges however, there is history being made this year. Saudi Arabia is hosting the summit for the first time, also marking the first time a Middle East nation has held the presidency. Plus, of course, all the meetings have been and are being held virtually. Saudi has handled its unprecedented presidency well, with meetings between engagement groups, central banks, and other representatives of government and the private sector going smoothly digitally. By October 26, the secretariat team had organized 116 virtual meetings, including the extraordinary leaders’ summit in March, as well as 26 ministerial-level meetings. It’s not the event calendar the kingdom was planning for, but it has provided other opportunities to show what it can do. This month we have put together a Special Custom G20 Edition looking at Saudi Arabia. Saudi is on a path to reform, with its Vision 2030 laying out the roadmap, its government building the infrastructure, and its people providing the incentive. What the kingdom wants now is to keep progressing in its plans for economic diversification. To achieve its goals the enigmatic country needs to open up to the world to attract investment and inbound tourists. Its performance to a global audience has never been so important, and it’s stepping up to the stage.

—Claudine Coletti, Managing Editor

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NOVEMBER 2020

SPECIAL CUSTOM G20 EDITION Dr. Nasser Bin Aqeel Al Tayyar President & Publisher Khuloud Al Omian Editor-in-Chief Forbes Middle East, CEO - Arab Publisher House khuloud@forbesmiddleeast.com Claudine Coletti Managing Editor

Ruth Pulkury Senior Vice President - Sales

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LEADERBOARD • ECONOMY By Jason Lasrado

G20: Facts, Figures, And Key Issues The G20 is an international forum for dialogue and coordination aimed at promoting international financial stability among its leading industrialized and emerging-market member nations. Since it was established, the G20’s agenda has expanded beyond macro-financial issues, to include socio-economic and development matters.

LEADERBOARD •

ECONOMY

The Leaders’ Summit: The first ever G20 Leaders’ Summit was held in Washington D.C. in November 2008. Saudi Arabia assumed the presidency of the G20 in December 2019. The G20 Leaders’ Summit for 2020, chaired by King Salman bin Abdulaziz Al Saud, will be held virtually on November 21 and 22.

Member countries • Japan • Mexico • South Korea • Russia • Saudi Arabia • South Africa • Turkey • U.K. • U.S. • EU

Brendan Smialowski / AFP

• Argentina • Australia • Brazil • Canada • China • France • Germany • India • Indonesia • Italy

The member countries vary considerably in terms of population, economic growth, level of infrastructure development, and digitalization. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Did you know? 80% of the world’s GDP,

combined GDP of $68.6 trillion

75% of global trade and around twothirds of the world’s population.

in 2019. The world’s total GDP is $87.5 trillion, according to IMF data.

(excluding the EU) had a

According to the UN, the total population of the G20 member states was estimated at

Non-member countries are also invited to participate.

Spain

4.6 billion

has a permanent invite to the G20 meetings as a guest. In 2020,

in 2019, which is 60% of the world’s total population of 7.7 billion.

Jordan, Singapore, and Switzerland will also attend as guests.

International organizations that have historically contributed to the G20’s work include:

World Bank

OECD

International Monetary Fund

COVID-19’s impact on the G20 Due to the impact of COVID-19 containment measures on economic activity, the G20 member countries’ economies shrunk a total of 6.9% in Q2 2020, which is significantly larger than the 1.6% contraction at the height of the financial crisis in Q1 2009. The G20 countries’ year-on-year GDP plunged 9.1% in Q2 2020, following a 1.7% contraction in Q1 when the World Health Organisation declared COVID-19 a pandemic. The OECD stated that China is the only G20 country that recorded an 11.5% growth in Q2 2020, while India and the U.K. recorded the most significant drops in GDP of 25.2% and 20.4% respectively. In October, the IMF projected that global output would decline by 4.4% this year, with a 5.2% rebound in 2021.

Financial Stability Board

Food and Agriculture Organization

United Nations

Collective efforts to fight COVID-19 The G20 has contributed over $21 billion to support the production and distribution of, and access to, diagnostics, therapeutics, and vaccines in the fight against the pandemic. It also injected over $11 trillion into mitigating the impact of the virus on the global economy. G20 countries launched a debt suspension initiative for the world’s least developed countries that will allow beneficiary countries to defer $14 billion in debt payments due this year so they can instead use the money to finance their health systems and social programs.

Important past decisions by the G20

2009 In 2009, the leaders of the G20 countries reached an agreement to help struggling economies to tackle the global financial crisis, with measures worth $1.1 trillion. The pledge included $500 billion for the IMF to lend to struggling economies, $250 billion to boost global trade, $250 billion for a new IMF “overdraft facility” and $100 billion for international development banks to lend to the world’s poorest countries. F O R B E S M I D D L E E A S T.CO M

2017 Despite the withdrawal of the U.S. from the Paris Agreement, in 2017 the G20 leaders reiterated the importance of fulfilling the UN Framework Convention on Climate Change commitments by developed countries to assist developing countries in mitigation and adaptation actions in line with the accord.

2019 At the 2019 G20 in Osaka, Japan, G20 leaders collectively supported bilateral and plurilateral trade liberalization practices consistent with the World Trade Organization. The agreement by China and the U.S. to end their trade war and resume negotiations presented a milestone towards achieving bilateral and plurilateral trade in the world. NOVEMBER 2020

9 ECONOMY

The 19 member countries

LEADERBOARD •

G20 countries represent over

LEADERBOARD • G20 By Ayesha Venkatraman and Jason Lasrado

Who Are The G20 Leaders? The G20 was first founded in 1999 for finance ministers and central bank governors to discuss macro-economic issues in response to a number of national financial crises, but it expanded after the global financial crisis in 2008 to include the leaders or heads of state of member countries. Here are the heads of state and government expected to participate this year.

Canada

United States

Germany

France

Justin Trudeau

Donald Trump

Angela Merkel

Emmanuel Macron

Mexico

Brazil

Argentina

Andrés Manuel López Obrador

Jair Bolsonaro

Alberto Fernández

F O R B E S M I D D L E E A S T.CO M

United Kingdom

Boris Johnson

Italy

Saudi Arabia

Giuseppe Salman bin Conte Abdulaziz Al Saud

European Union

Charles Michel

Ursula von der Leyen

India

Russia

Japan

China

Narendra Modi

Vladimir Putin

Yoshihide Suga

Xi Jinping

South Africa

Turkey

Australia

South Korea

Indonesia

Cyril Ramaphosa

Recep Tayyip Erdogan

Scott Morrison

Moon Jae-in

Joko Widodo

NOVEMBER 2020

Shutterstock.com; Images from Source

LEADERBOARD • G20

Alberto Fernández Role: President since December 2019 Age: 61 Before becoming president of Argentina, Peronist bureaucrat Fernández was previously a criminal lawyer and a university professor. He served as the campaign manager and chief of staff during Néstor Kirchner’s presidency from 2003 to 2007 and did the same for a year for Kirchner’s wife, Cristina Fernández de Kirchner, when she became president in 2007. The two reportedly clashed during her tenure, but Fernández de Kirchner is now Fernández’s vice president. Fernández won the presidency in the 2019 general election as the candidate for the Front of All (Frente de Todos) coalition. Fernández has called on G20 leaders to create a global humanitarian emergency fund to help combat the impact of the pandemic.

Celso Pupo / Shutterstock.com

Australia

Jair Bolsonaro

forming a government, have done so as a coalition (known as the Coalition). The center-right Coalition government came into power in 2013. Morrison was government Treasurer from 2015 until 2018, when he ousted Malcolm Turnball as prime minister. Last year, he won his first general election. At the G20 in Osaka in 2019, Morrison’s priorities included keeping extremist content off the internet following the attacks in Christchurch, and reducing the labour market gap between women and men by 25% by 2025.

Brazil

Scott Morrison

Jair Bolsonaro

Role: Prime Minister since August 2018 Age: 52

Role: President since January 2019 Age: 65

Morrison was elected to the House of Representatives in 2007 and has since held several parliamentary and ministerial positions for the Liberal Party, including in housing, immigration, and productivity. Since 1949, Australia’s Liberal and National parties, when

Right-wing conservative Bolsonaro first entered politics after he left the army in 1988 and was elected to the Rio de Janeiro city council the following year. He served in the Chamber of Deputies as a representative of Rio de Janeiro between 1991 and 2018. In those

F O R B E S M I D D L E E A S T.CO M

years he moved parties a number of times, from the Christian Democratic Party to the Progressive Party, to the Brazilian Labour Party, back to the Brazilian Progressive Party, and then on to the Social Christian Party. He became president with the Social Liberal Party in 2018, which he left in 2019 to create the Alliance Of Brazil. Speaking at the Future Investment Initiative Forum in Riyadh in 2019, Bolsonaro expressed interest in Brazil joining OPEC.

Canada

Justin Trudeau Role: Prime Minister since November 2015 Age: 48 Before entering politics in 2007, Trudeau was a former snowboard instructor and school teacher. He served as the chairman of youth charity Katimavik, a board member for the Canadian Avalanche Foundation, and an advocate for young people and the environment. His father, Pierre Trudeau, served as prime minister of Canada

China

Xi Jinping Role: President since March 2013 Age: 67 Jinping is the leader of the ruling Chinese Communist Party (CCP)—China’s only political party—and the son of former deputy prime minister, Xi Zhongxun. Jinping is considered a “princeling”—a descendant of prominent Communist Party officials. In his youth Jinping worked as a labourer in an agricultural commune before becoming a party member in 1974. He worked his way to the top and in 2012 was picked as the general secretary of the CCP. He was elected president of China by the National People’s Congress in 2013. He ran an anti-corruption campaign, and developed the One Belt, One Road initiative. He was number one on Forbes’ list of Powerful People 2018. At last year’s G20 summit, Jinping agreed to resume trade talks with the U.S., but relations between China and the U.S. have since cooled. NOVEMBER 2020

11 LEADERBOARD • G20

for 15 years over four terms. Trudeau assumed office in 2008, winning the seat of Papineau for the Liberal Party. He was elected to lead the Liberal Party in 2013 and became prime minister two years later. In 2019 he won a second term. At the 2019 G20 summit, Trudeau joined Australia’s Scott Morrison in calling for tighter controls over extremist content online, and stressed the need to protect the environment for future generations.

Argentina

Emmanuel Macron

LEADERBOARD • G20

Role: President since May 2017 Age: 42 Before becoming the youngest president in French history, Macron worked at the Inspectorate General of Finance before becoming an investment banker for Rothschild & Cie Banque in Paris. In 2012 he became deputy secretary general of the Presidency of the Republic. He then served as minister of economy, industry, and digital affairs from 2014. In 2016 he founded the “La République En Marche,” which defines itself as a political and citizen movement to put the French back at the heart of political life. Macron won a landslide victory in 2017. Soon after taking office he made several pro-business labor reforms, including making it easier for companies to hire and fire employees. He was number 12 on Forbes’ list of Powerful People 2018. At last year’s G20 summit, he asked for a commitment towards meeting the Paris Agreement goals.

Germany

Angela Merkel Role: Chancellor since November 2005 Age: 66 Former physicist Merkel grew up in East Germany before entering politics in 1989, joining the opposition movement the “Democratic Awakening.” F O R B E S M I D D L E E A S T.CO M

Angela Merkel

In 1990 the movement merged with the Christian Democrat Union (CDU). That same year Merkel won the constituency of Stralsund-Rügen-Grimmen. She became minister for youth and women in 1991, and the minister for the environment, nature conservation and nuclear safety in 1994. She has remained an advocate for women and the environment throughout her career. In 2005 she became chancellor of Germany—she was the first woman, the first East German, and the youngest person to ever hold the role. In 2017 she won her fourth consecutive term. She was number one on Forbes’ list of Powerful Women 2019. At last year’s G20 summit, Merkel urged for further reform of the World Trade Organization.

India

Narendra Modi Role: Prime Minister since May 2014 Age: 70 Populist politics graduate Modi joined the right-wing Rashtriya Swamsevak Sangh (RSS) nationalist organization in the

early seventies. He joined the pro-Hindu Bharatiya Janata Party (BJP) in 1987 and in 2001 he was appointed to be its chief minister for Gujarat. He was chosen to lead the BJP party in 2013 and the following year won a landslide victory. He secured his second term in 2019. Under Modi’s leadership, ties between India and Saudi Arabia have been strengthened with the signing of the agreement for the Strategic Partnership Council in October 2019, which was set up to monitor and guide the strategic partnership and projects taken up by the two sides. At the G20 summit in Osaka he held several bilateral meetings with other leaders, including Brazil’s Jair Bolsonaro, with whom he reportedly discussed improving business links and overcoming climate change.

Indonesia

Joko Widodo Role: President since October 2014 Age: 59 Former forestry graduate and furniture exporter Widodo, also called “Jokowi,” grew up in the slums of a small village. He was mayor of Surakarta for two terms from 2005 as

a member of the Indonesian Democratic Party of Struggle (PDI-P). He became governor of Jakarta in 2012. In 2014 the PDI-P selected him as leader and he won a victory in the general election that same year. He won a second term in 2019. He is known for his connection with the common people and has vowed to minimize bureaucracy and boost investments. He developed a nine-point agenda that focused on helping the poor and pushed for the development of road, airport, and railway projects. At the G20 in Osaka last year, Widodo argued for World Trade Organisation reform and the protection of the multilateral trade system.

Italy

Giuseppe Conte Role: Prime Minister since June 2018 Age: 56 Former Florentine law professor Conte had held no prior political office before he was elected in 2018 as the leader of a coalition government that brought together Italy’s anti-establishment Five Star movement and the far-right League. He went on to win a vote of no confidence in 2019 filed by the League but managed to forge a second left-leaning coalition government. Consequently, he has become Italy’s first prime minister to lead both left and right-leaning alliances. He has launched a citizens’ welfare program to help alleviate poverty and jumpstart the economy. NOVEMBER 2020

360b / shutterstock.com

France

Yoshihide Suga

Cyril Ramaphosa

Role: Prime Minister since September 2020 Age: 71

Role: President since February 2018 Age: 68

Born to a family of farmers, law graduate Suga entered politics in 1987 when he was elected to the Yokohama Municipal Assembly. In 2006, during former prime minister Shinzo Abe’s first term, Suga was made minister for internal affairs and communications and minister for privatization of the postal services. During Abe’s second term, in 2012, Suga became cabinet secretary minister in charge of strengthening national security. Abe announced his resignation in September 2020 due to bad health, at which point Suga was elected to lead the ruling conservative Liberal Democratic Party. He is reportedly now focused on the pandemic and economic reform. This will be Suga’s first G20 as prime minister.

Former activist, lawyer, and businessman, Ramaphosa rose to prominence in the 1980s when he co-founded the National Union of Mineworkers and became its first general secretary. In 1991, he was elected secretary general of the African National Congress (ANC) and led negotiations at the Convention for a Democratic South Africa. He became a member of parliament in 1994 and oversaw the drafting of South Africa’s first democratic constitution. After a stint back in business he returned to politics in 2012 when he became deputy president of the ANC. He became deputy president of the country two years later, and in 2015 was named Africa’s 42nd richest person by Forbes. In 2018, he became president a day after Jacob Zuma resigned. At last year’s G20, he sought to secure support for infrastructure development and the Sustainable Development Goals.

Mexico

Andrés Manuel López Obrador Role: President since December 2018 Age: 66

Photo by FETHI BELAID / POOL / AFP

South Africa

Lopez Obrador got his start in politics as a member of the governing Institutional Revolutionary Party (PRI), becoming the party president for the state of Tabasco in 1983. Later he joined the centerleft Party of the Democratic Revolution (PRD), becoming its national president from 1996 to 1999. A year later he F O R B E S M I D D L E E A S T.CO M

King Salman bin Abdulaziz Al Saud

became head of the Federal District Government and Mayor of Mexico City, until he resigned in 2005 to run for president. He finally won at his third attempt in 2018 after forming a new political party, the National Regeneration Movement, in 2014. He campaigned on improving the lives of the poor, reducing violence, and narrowing the wealth gap.

Russia

Vladimir Putin Role: President since May 2012 Age: 68 Law graduate and former foreign intelligence officer, Putin retired from the KGB after 15 years of service in 1990 and entered politics as an advisor to the mayor of St. Petersburg. In 1998, Boris Yeltsin made Putin chief of the FSB, then secretary of the Security Council, and in 1999 made him prime minister. At the end of that year Yeltsin announced his resignation and named Putin acting president. Putin went on to win presidential elections in 2000 and 2004. In 2008 he became prime minister again, before a third term as president in 2012,

at which point presidential terms were extended from four to six years. In 2018, he won a fourth term, and was number two on Forbes’ list of Powerful People. After the 2019 G20, he confirmed agreements regarding trade, the environment, preventing the spreading of extremist content, and digitization and AI.

Saudi Arabia

King Salman bin Abdulaziz Al Saud Role: King since January 2015 Age: 84 King Salman came to power in Saudi upon the death of his half-brother King Abdullah in 2015. He became the governor of the province of Riyadh first in 1955 for five years, and again in 1963, holding office for 48 years, during which he oversaw the city’s transformation from an isolated desert town to a financial hub. In 2011, he was appointed defence minister, followed by heir apparent a year later. Under his rule, he has streamlined government bureaucracy and altered the Saudi line of succession, ensuring a younger line of incoming rulers.

South Korea

Moon Jae-in Role: President since May 2017 Age: 67 The son of refugees from North Korea, Jae-in became an activist as a student and spent time in the South Korean army before getting NOVEMBER 2020

13 LEADERBOARD • G20

Japan

Turkey

Recep Tayyip Erdogan Role: President since August 2014 Age: 66 Former footballer Erdogan became interested in politics at a young age, becoming the elected Beyoğlu District Head of the Welfare Party in 1984. He became mayor of Istanbul in 1994, but was forced to resign and banned from political office after a 1998 conviction for inciting hatred. He helped form the Justice and Development Party (AKP), which won the parliamentary elections in 2002. That same year a constitutional amendment lifted his ban from office and in 2003 President Ahmet Necdet Sezer made Erdogan F O R B E S M I D D L E E A S T.CO M

Donald Trump

prime minister. The AKP won parliamentary elections in 2007 and 2011, with Erdogan eventually becoming president in 2014. He was re-elected in 2018. Erdogan has reportedly prevented democratic protests and moved towards autocracy.

United Kingdom

Boris Johnson Role: Prime Minister since July 2019 Age: 56 Former journalist Johnson worked for The Times, The Daily Telegraph, and The Spectator, appeared on TV talk shows and made a failed attempt at entering politics in 1997 before becoming a conservative MP in 2001. He was fired as shadow arts minister in 2004 for having an affair with a journalist but was re-elected to his seat in 2005. He was elected as Mayor of London in 2008 and 2012. He backed the Brexit campaign in 2016, leading to his appointment as foreign secretary during Theresa May’s premiership, which he resigned from after two years. He became prime minister in 2019, leading the Conservatives to their biggest parliamentary victory in 33 years.

United States

Donald Trump Role: President since January 2017 Age: 74 Former reality-show host Trump had no political experience before his successful presidential bid in 2016. He first shot to fame in the 80s as a real estate developer and businessman, lending his name to several high-profile Manhattan projects. While he sought a nomination as presidential candidate for the Reform Party in 2000, it was only in 2015 that he ran his own populist republican campaign that was strongly anti-establishment, anti-immigration and nationalist, securing him a surprise victory the following year. After the G20 2019, Trump said discussions had touched on women’s economic empowerment, and that the U.S. would be working with China to “make a deal.”

European Union

Charles Michel Role: President of the European Council since December 2019 Age: 44

Belgian law graduate Michel started out in politics at a young age, running for elections not long after finishing university and becoming a member of the federal government in 1999. A year later he became the minister for interior affairs and civil service for Walloon, one of Belgium’s six main governments. He became leader of the MR (Reformist Movement) in 2011 and served as mayor of Wavre between 2006 and 2014. He became the prime minister of Belgium in 2014. This year will be Michel’s first G20 summit.

European Union

Ursula von der Leyen Role: President of the European Commission since December 2019 Age: 62 Former physician von der Leyen became involved in politics in the 1990s, serving as cabinet minister in the state government of Lower Saxony in 2003. She joined the federal cabinet in 2005, occupying different ministerial roles, and eventually became the first woman to serve as German defence minister from 2013 to 2019. After 14 years, she was the longest serving member of Angela Merkel’s cabinet. In 2019, she was elected president of the Commission by the European Parliament, becoming the first woman to lead the EU’s powerful executive. NOVEMBER 2020

Evan El-Amin / Shutterstock.com

LEADERBOARD • G20

his law degree. He worked as a human rights lawyer with Roh Moo-hyun until 2002, when Moo-hyun became president and made Jae-in his senior secretary for civil affairs. He became chief of staff in 2007 and chairperson of the Roh Moo-hyun Foundation in 2010. In 2012, he won a seat in the National Assembly but lost his first presidential bid to Park Geun-hye. That changed in 2017, when he won the presidential bid following Geun-hye’s impeachment, becoming South Korea’s first liberal president in nearly a decade. He has since started negotiating peace with North Korea. At last year’s G20 he urged members to respond to the downside risks of the global economy.

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NOVEMBER 2020

LEADERBOARD • ECONOMY By Jamila Gandhi

Snapshot: B20 The Business 20 (B20)—comprising of business leaders from the G20 countries and invited nations—is one of the civil society engagement groups that makes policy recommendations to the G20 presidency. Here’s a snapshot of what the B20 is all about. Yousef Abdullah Al-Benyan, B20 Chair for Saudi Arabia and Vice Chairman and CEO of SABIC

Saudi Arabia assumed the G20 presidency in December 2019 from G20 Japan. Similarly, in November 2019, the B20 presidency was handed over to Yousef Abdullah Al-Benyan, B20 Chair for Saudi Arabia and Vice Chairman and CEO of SABIC. The B20 serves as the private sector’s official voice to the G20, representing the global business community across all G20 members and all economic sectors. The group develops and presents its policy recommendations to the G20 presidency, in this case, to King Salman bin Abdulaziz, to be agreed to and included in the G20 joint communique.

Key priorities The B20 Saudi Arabia prioritizes six taskforces: digitalization; energy, sustainability and climate; finance and infrastructure; future work and education; integrity and compliance; and trade and investment. The policy recommendations were discussed during the B20 virtual summit on October 26 and 27, 2020, with this year’s theme being “Transforming For Inclusive Growth.” “Women In Business” is the signature topic for B20 Saudi Arabia, which is advocated through a dedicated action council for women in business. The first of its kind initiative is committed to gender equality and increasing women’s participation in business, especially in leadership positions, globally. F O R B E S M I D D L E E A S T.CO M

B20 policy recommendations Empowering people by unleashing opportunities for all. Under this point, B20 recommends 10 policies that highlight women’s leadership, employment recovery, employability, trade investments, and enabling SMEs and entrepreneurs, among others. It has also called on the G20 to “facilitate sustainable financing by developing a roadmap for international coordination on sustainable finance taxonomies.” Safeguarding the planet by fostering growth within the limits of the planet. The B20 urges the G20 economies to “strengthen the climate resilience of infrastructure” and “define policies and guidelines that promote the sustainable use of freshwater systems and the ocean.” This is in addition to its call for the G20 members’ commitment to achieving carbon neutrality by 2050 and the development of financial policy frameworks to support the cause. Shaping new frontiers by enabling even adoption of technological advances and enhancing a culture of integrity. This area covers nine policy recommendations to the G20, which highlight the importance of technology, enhancing global standards of anti-corruption, and digital inclusion, among others.

676 members Representing global and regional corporations and business associations

55 chairs and co-chairs

Steering the taskforce process

33.7% women

CMY

Represented across the total taskforces and 43% of the Chairs

3 reports Furthering the business community’s global impact

8 joint statements Across the most pressing issues of the B20 Saudi Arabia Presidency

41 meetings Across taskforces to identify policy priorities and global lessons learned

7 policy papers Condensed in a Summary of Policy Recommendations to be presented to the G20 Leaders

NOVEMBER 2020

image from B20 website

LEADERBOARD •

ECONOMY

F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

LEADERBOARD • ECONOMY By Nermeen Abbas

The G20 this year is being conducted at a time when countries across the world are facing mounting economic problems and recession.

SPENCER PLATT / Getty Images via AFP

LEADERBOARD •

ECONOMY

Pandemic-Hit G20 Economies May Decline 4% To $66 Trillion This Year

The U.S. is the largest economy in the world. Its GDP is expected to touch $20.8 trillion this year. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Behrouz MEHRI / AFP

F O R B E S M I D D L E E A S T.CO M

ECONOMY

Tokyo Stock Exchange

The G20’s largest economies U.S. The U.S. is the largest economy in the world. Its GDP is expected to touch $20.8 trillion this year, compared to $21.4 trillion a year ago. It may see its economy shrink by 4.3% compared to a 2.2% growth in 2019.

China China has the second largest economy in the world after the U.S. with a GDP of $14.7 trillion in 2019, which is expected to grow to touch $15.2 trillion in 2020, making it the only economy among the G20 countries to grow this year. The IMF expects China’s economy to grow by 1.9% compared to a 6.1% growth rate in 2019. Inflation is expected to stabilize around the same levels of 2019 at 2.9%, while unemployment could rise slightly to 3.8% compared to 3.6% last year.

Japan Japan’s economy has seen an unprecedented contraction in the second quarter of 2020 at 7.9%, and the IMF expects it to shrink by 5.3% in 2020 compared to a marginal economic growth of 0.7% last year. Japan’s GDP will drop to $4.9 trillion

this year, from $5.1 trillion in 2019. As economic activity slows down, Japan’s inflation rate is expected to fall by 0.1% in 2020 compared to 0.5% in 2019, while the unemployment rate will increase from 2.4% in 2019 to 3.3% by 2020-end.

Germany Germany’s economy is facing headwinds, with the IMF expecting a 6% decline compared to growth of 0.6% in 2019. Its GDP, which is the largest in Europe, is projected to decline to $3.7 trillion in 2020 from $3.8 trillion in 2019. Meanwhile, Germany’s inflation rate will decline from 1.3% in 2019 to 0.5% in 2020, while the unemployment rate will soar to 4.3% from 3.1% last year.

U.K. The U.K. is the fifth largest economy among the G20 with a GDP of $2.83 trillion in 2019, which is expected to drop to $2.64 trillion this year. The country could see its economy shrink by nearly 9.8% in 2020 compared to an economic growth of 1.5% in 2019. Inflation could decline from 1.8% in 2019 to 0.8% in 2020, while the unemployment rate is expected to increase from 3.8% to 5.4% in 2020. NOVEMBER 2020

LEADERBOARD •

The member countries of the G20 represent about 80% of the world’s GDP (estimated at $83.8 trillion), in 2020, 75% of the global population, and three-quarters of international trade. This year, the economies 19 of the G20 countries, excluding the EU, are expected to contract by about 4%, with combined GDP hitting a value of $65.8 trillion in 2020, down from $68.6 trillion a year ago, according to an IMF forecast. China is the only country among the G20 group that is expected to achieve growth this year at 1.9%, while the IMF predicts that Argentina, Italy and India will be the most hit, contracting by 11.8%, 10.6% and 10.3%, respectively. Last year, the economies of all G20 countries achieved growth, except Mexico and Argentina, which contracted by 0.3% and 2.1%, respectively. The U.S. has the highest GDP in the world and among the G20 group at $21.4 trillion in 2019. It is followed by China at $14.7 trillion, and then Japan, Germany, U.K. and India. The IMF expects U.S. GDP to shrink to $20.8 trillion in 2020, while China’s GDP will increase to $15.2 trillion. Turkey’s economy has the highest expected inflation rates this year at 11.9%, followed by India at 4.9%, Saudi Arabia at 3.6% and Mexico at 3.4%. Inflation in Argentina touched 53.5% last year, while the IMF is yet to release its forecast for Argentina’s inflation rate for this year. Japan’s economy may record a negative inflation target at 0.1%. South Africa struggles with the highest unemployment rate among G20 countries at about 37%, followed by Turkey at 14.6%, Brazil at 13.4%, Argentina at 11% and Italy at 11%. Japan and China have the lowest unemployment rates at 3.3% and 3.8%, respectively. South Africa is expected to be hit by the largest increase in unemployment this year, with an 8.3% increase compared to 2019, followed by the U.S. at 5.2%, Canada at 4%, and Indonesia at 2.7%, according to IMF estimates.

Saudi’s economy Saudi Arabia ranks sixteenth among the G20 in terms of the size of its economy, not including the EU, ahead of Turkey, Argentina, and South Africa, with a GDP of $793 billion in 2019, which is expected to decline to $680.9 billion in 2020. Saudi’s economy is expected to shrink by 5.4% this year compared to a 0.3% growth rate last year. The country recorded a 2.1% fall in inflation in 2019 and is expected to witness a 3.6% annual inflation rate by end of 2020. The unemployment rate in Saudi Arabia was 5.6% in 2019.

LEADERBOARD •

ECONOMY

20 Estimated GDP in 2020

Estimated GDP 2020 growth rate

Estimated annual inflation 2020

Estimated unemployment 2020

United States

$20.81 T

-4.3% 1.5%

8.9%

China

$15.22 T

1.9%

2.9%

3.8%

Japan

$4.91 T

-5.3% -0.1%

3.3%

Germany

$3.78 T

-6.0% 0.5%

4.3%

United Kingdom

$2.64 T

-9.8% 0.8%

5.4%

India

$2.59 T

-10.3% 4.9%

---

France

$2.55 T

-9.8% 0.5%

8.9%

Italy

$1.85 T

-10.6% 0.1%

11.0%

Canada

$1.6 T

-7.1% 0.6%

9.7%

Republic of Korea

$1.59 T

-1.9% 0.5%

4.1%

Russia

$1.46 T

-4.1% 3.2%

5.6%

Brazil

$1.36 T

-5.8% 2.7%

13.4%

Australia

$1.33 T

-4.2% 0.7%

6.9%

Indonesia

$1.08 T

-1.5% 2.1%

8.0%

Mexico

$1.04 T

-9.0% 3.4%

5.2%

Saudi Arabia

$680.89 B

-5.4% 3.6%

---

Turkey

$649.44 B

-5.0% 11.9% 14.6%

Argentina

$382.76 B

-11.8%

South Africa

$282.59 B

-8.0% 3.3%

F O R B E S M I D D L E E A S T.CO M

---

11% 37%

NOVEMBER 2020

LEADERBOARD •

ECONOMY

AT THE FOREFRONT OF EXCELLENCE Ghassan Aboud Group is a multi-business conglomerate with a vision to be market leaders in key economic sectors. Driven by passion for excellence, innovation and success, the group is on a growth mode across a diversified business portfolio.

AUTOMOTIVE • HOSPITALITY • REAL ESTATE • RETAIL • HEALTHCARE CATERING • LOGISTICS • PASTORAL • TRADE & DISTRIBUTION • MEDIA

F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

LEADERBOARD • WOMEN By Layan Abo Shkier

The First Saudi Women To… With increasing freedoms, the role of women in Saudi society is changing rapidly, enabling them to reach new heights in politics, aviation, sports, and business. Here are some of the trailblazers.

Hanan Al-Ahmadi

Reema Al Saud

Reema Juffali

First Saudi woman to… be assistant speaker of the Saudi Shura Council

First Saudi woman to… be a Saudi Ambassador to Washington

First Saudi woman to… be a professional racing driver

In October 2020, Saudi King Salman bin Abdulaziz issued a royal order to appoint Hanan Al-Ahmadi as the assistant speaker of the Saudi Shura Council. Taking the third highest position in the council, Al-Ahmadi became the first female to occupy a leadership role in the council in its 90+ year history. Al-Ahmadi holds a master’s degree in healthcare management, and a PhD in public health.

In 2019, Princess Reema bint Bandar bin Sultan bin Abdulaziz Al Saud became the country’s first female envoy. The princess served in multiple political and official positions in and outside of Saudi Arabia, including serving as the President of the Saudi Federation for Community Sports, in which she became the first woman to head a multi-sport federation in the kingdom.

In 2017, when women were allowed to drive in Saudi Arabia, Reema Juffali became the first Saudi woman to obtain her racing driving license. In 2019, Juffali represented her country in the F4 British Championship at Brands Hatch to become the first Saudi woman to participate in an international car racing tournament.

Raha Moharrak

Hanadi Al-Hindi

Douha Al Otaishan

First Saudi woman to… fly a plane

First Saudi woman to… be a head chef

Al-Hindi received her private pilot license in 2001, and her commercial pilot license from the General Authority of Civil Aviation (GACA) in 2013, becoming the first Saudi woman to receive such a license in the kingdom.

When the Golden Tulip Andalusia Hotel in Riyadh hired Douha Abdullah Al Otaishan to be the executive chef in its restaurant, she became the country’s first female head chef. Al Otaishan hosts her own cooking show, Matbakh Douha and holds a master’s degree in social services.

Sarah Attar and Wojdan Shaherkani First Saudi women to… reach the Olympics In 2012, Sarah Attar and Wojdan Shaherkani became the first two Saudi women to represent their country in the summer Olympics. Attar is a track and field athlete who represented Saudi Arabia in the Women’s 800 Meters Olympics competition in 2012, and in the marathon in 2016. Shaherkani competed in the judo “above 78kg” category in 2012. F O R B E S M I D D L E E A S T.CO M

First Saudi woman to… climb Mount Everest

In 2013, at the age of 27, Raha Moharrak became the youngest Arab and the first Saudi woman to reach the summit of the world’s highest mountain, Mount Everest. Moharrak started her journey in 2011 when she reached the summit of Mount Kilimanjaro in Tanzania. Moharrak is also a graphic designer.

Lubna Olayan First Saudi woman to… chair a Saudi listed company In 2004, Olayan was elected to the board of Alawwal Bank – the first woman to join the board of a Saudi publicly listed company. In 2019, after the merger between the Saudi British Bank and Alawwal Bank, she was appointed as chairperson of the newly-formed company, becoming the first Saudi woman to head a Saudi-listed firm and publicly traded bank. Olayan holds a master’s degree in business administration.

NOVEMBER 2020

Hanan Al-Ahmadi, Image from source; Reema Al Saud, Photo by FAYEZ NURELDINE / AFP; Reema Juffali, Image from Source; Lubna Olayan, Image from The Olayan Group; Sarah Attar, @theSarahAttar / Twitter; Wojdan Shaherkani, Photo by TOSHIFUMI KITAMURA / AFP; Raha Moharrak, @RahaMoharrak / Twitter; Hanadi Al-Hindi, image from source; Douha Al Otaishan, LinkedIn / Douha Alotaishan

LEADERBOARD •

WOMEN

P RO M OT I O N

Building Back Bigger Dr. Anil Pillai, Founder and Chairman of Airolink, reveals details of the company’s latest project and his predictions for the post-pandemic world.

Behrouz MEHRI / AFP

as well as close to 3,000 car parking spaces. In addition to 78 hotel rooms, the residential units include 2,617 studio, one, two and three-bedroom apartments.

You have begun construction on Seven City, one of the biggest residential projects in the U.A.E. Could you tell us more about this project? The iconic Seven City project was announced on the 12th anniversary of the incorporation of Airolink in the U.A.E, which makes the project even more special for us. Scheduled to complete in Q2 2023, this is the single largest project for Airolink in terms of value and the total built-up-area (3.57 million sq ft). Once constructed, Seven City, JLT Towers, will be the biggest residential tower in the U.A.E. The project comprises three interconnected towers with 2B+G+5P+31 floors involving an exceptionally large quantity of concrete and reinforcement steel. Airolink has a proven track record for completing similar challenging projects. Situated within Cluster Z in DMCC, opposite the Montgomery and Emirates’ golf courses and the Emirates Hills community, the 2,744-unit mixed development features a large retail area with 49 units covering 150,000 sq ft over three floors. This will also include a three-screen cinema and hypermarket,

You have recently entered the Bahrain market, do you have any plans to expand further into other regional markets? Airolink has always been open to enhancing its presence internationally through careful planning and strategic partnerships, particularly where the U.A.E. government is involved. Along with our JV Partner, a leading local entity in Bahrain, Airolink has been awarded two new U.A.E.-government backed projects in Madinat Salman Island by the Ministry of Housing in Bahrain. Airolink has achieved a safety record of 35 million labor hours without any serious hazards, how did you achieve this? Ensuring a safe and secure work environment is our utmost priority and is practiced religiously at all our project sites. Care and responsibility are instilled in all the management levels to ensure this. Starting from proper planning and risk assessments to audits and training, our health and safety management systems are designed to be robust and up-to-date to enable safe operations. Integrating safe work in all our operations and thus ensuring international standards offers us the competitive edge over other contractors and reiterates our commitment to our clients and society. How will the emergence of smart cities impact the region’s construction industry?

The thoughts expressed in this advertorial are those of the client. F O R B E S M I D D L E E A S T.CO M

Aimed at increasing the quality of life and efficiency of modern urban social framework, the last few years have witnessed the region striving towards enhanced deployment of smart city technologies. Right from smart sustainable cities to immersive user experiences, the U.A.E. has always led the way. Smart construction methodologies and sustainability-driven measures are bound to revolutionize the U.A.E.’s construction industry. Embracing these advances, Airolink has adopted smart sustainable solutions into its operations and is constantly updating its systems and procedures to keep up with the rapid pace of technological advances. How will the construction industry overcome the impacts of COVID-19 and move beyond the pandemic? No doubt we are navigating through an exceptionally challenging phase in modern times. However, the construction industry in the U.A.E. has time and again proven to be resilient and has survived the previous global downturns, with the support of the proactive government. Stimulus packages and global tie-ups are already reflecting in the revival of consumer confidence and continues to draw investment into the region. There are already signs of the construction industry emerging back stronger than before.

www.airolinkgroup.com

NOVEMBER 2020

LEADERBOARD • BILLIONAIRES By Jason Lasrado

G20 Rich List

While the G20 Leaders’ Summit is a meeting of the heads of the world’s biggest economies, a handful of the world’s most wealthy are the biggest beneficiaries of the economic growth. Here are the richest people in each of the G20 countries. Net worths are as of October 29, 2020. The economic prosperity of the world’s most affluent countries has brought great wealth to several individuals that are now among the richest people in the world.

Jack Ma Country: China

Net worth: $65.6 billion

Jeff Bezos Country: U.S.

Net worth: $186.3 billion Currently the richest person in the world, Bezos founded e-commerce giant Amazon in 1994. Today he runs the company as its CEO with an 11.1% stake. Amazon hired 175,000 additional workers between March and April 2020 owing to a surge in online buying. Bezos also owns The Washington Post and Blue Origin, an aerospace company that is developing rockets for commercial use.

Ma cofounded Alibaba Group, one of the world’s largest e-commerce businesses, and he holds 50.52% voting rights in fintech giant, Ant Group. Alibaba’s 2014 IPO in New York set a record as the world’s biggest public stock offering, raising $25 billion. Ant Group’s dual listing in Hong Kong and Shanghai is set to raise around $35 billion. Ma stepped down as Alibaba’s executive chairman in September 2019 and he was succeeded by CEO Daniel Zhang.

Bernard Arnault & family Country: France

Net worth: $115.9 billion

Jeff Bezos photo by Phillip Faraone / Getty Images via AFP; Bernard Arnault photo by Martin BUREAU / AFP / POOL; Mukesh Ambani photo by INDRANIL MUKHERJEE / AFP; Jack Ma photo El Wong for Forbes Asia

LEADERBOARD •

BILLIONAIRES

Arnault oversees an empire of 70 brands including Louis Vuitton and Sephora today, but he started by managing his father’s real estate and construction company. His father made a small fortune in construction and Arnault got his start by using $15 million from that business to acquire Christian Dior in 1985. In October, he donated $5.9 million to the Institut Pasteur de Lille to help researchers from his hometown who are in the early stages of developing a coronavirus vaccine.

Mukesh Ambani Country: India

Net worth: $77.6 billion Ambani is the chairman and founder of Reliance Industries, which has interests in petrochemicals, oil and gas, telecom, and retail. Mukesh is the eldest son of a self-made billionaire, Dhirubhai Ambani, who founded Reliance Textile Industries as a yarn trading business in 1977, which he then vertically integrated into petrochemicals. Mukesh also has interests in the media, sports, events, music, startups and retail sectors. This year Ambani raised more than $20 billion selling a third of Jio to a string of investors, such as Facebook and Google. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Net worth: $51.6 billion

Net worth: $26.8 billion

Helu and his family control America Movil, Latin America’s biggest mobile telecom firm. With foreign telecom partners, Helu bought a stake in Telmex, Mexico’s only phone company, in 1990. Telmex is now part of America Movil. He also owns stakes in Mexican construction, consumer goods, mining, and real estate companies, and 17% of the New York Times.

Ferrero is executive chairman of his family’s namesake confectionery business. The firm is best known for its iconic Nutella chocolate-hazelnut spread, Kinder chocolates, and Tic Tac mints. Giovanni served as co-CEO with his brother, Pietro, who died of a heart attack in 2011. In 2017 he stepped down as CEO but stayed on as executive chairman to focus on corporate strategy. In January 2018 he inked a deal with Nestle to acquire the company’s entire U.S. confections business for $2.8 billion.

Beate Heister & Karl Albrecht Jr Country: Germany

Carlos Slim Helu photo by YURI CORTEZ / AFP; David Thomson photo, REUTERS/Fred Greenslade; Tadashi Yanai photo by Sajjad HUSSAIN / AFP; Giovanni Ferrero photo by Giuseppe CACACE / AFP; Vladimir Lisin photo by Mikhail Svetlov / Getty Images; Joseph Safra photo by VANINA LUCCHESI / AFP

Net worth: $41.1 billion Heirs to the Aldi retail fortune, Beate Heister and Karl Albrecht Jr. are the children of Karl Albrecht Sr., who died in July 2014 age 94. After World War II, Karl Sr. and his brother, Theo Sr., who died in 2010 age 88, took over their family’s corner grocery store in Essen, Germany. They built their Aldi supermarket chain based on a low-price strategy similar to Wal-Mart. In 1961, the brothers split ownership.

David Thomson & family Country: Canada

Vladimir Lisin Country: Russia

Net worth: $23.3 billion Lisin is chairman of NLMK Group, a leading manufacturer of steel products. Lisin started out as an electrical fitter in a coal mine in Siberia and then worked as a steelworker in Central Russia. He later managed factories for a group of traders called Trans-World Group. When the partners went their separate ways in 2000, he got a majority stake in the Novolipetsk steel mill. Lisin also controls Universal Cargo Logistics Holding, which owns railway operator Freight One, some ports and shipping companies.

Net worth: $38.6 billion Thomson and his family control a media and publishing empire founded by his grandfather Roy Thomson. The family’s biggest holding is more than 320 million shares of Thomson Reuters, where Thomson serves as chairman. The family also holds a stake in telecom giant Bell Canada and owns the Toronto-based Globe and Mail newspaper.

Tadashi Yanai & family

Joseph Safra Country: Brazil

Net worth: $22.6 billion Safra, a descendant of a banking family from Syria, is the world’s richest banker. In Brazil he owns Banco Safra, the country’s 8th largest bank, while in Switzerland he owns J. Safra Sarasin, a bank created in a merger in 2013. He also owns 50% of banana grower Chiquita Brands International; the other 50% is owned by Brazilian orange juice billionaire Jose Cutrale.

Country: Japan

Net worth: $ 35.1 billion Yanai built and runs Tokyo-listed retail clothing empire Fast Retailing, parent of the Uniqlo chain. Fast Retailing’s other brands include Theory, Helmut Lang, J Brand and GU. The company reported net profit of $2.3 billion for fiscal year ended August 2019 on revenue of $21.3 billion. Yanai resigned as an independent director from the board of SoftBank Group after 18 years, in December 2019. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

25 BILLIONAIRES

Country: Mexico

Giovanni Ferrero Country: Italy

LEADERBOARD •

Carlos Slim Helu & family

Net worth: $18.1 billion

Country: South Africa

Ratcliffe is the founder, chairman, and majority owner of chemical powerhouse Ineos Group. The Londonbased conglomerate produces everything from synthetic oils and plastics to solvents used to make insulin and antibiotics. It has also become one of the largest players in the U.K. shale sector after entering the market in 2014. Ratcliffe mortgaged his house in 1992 to lead the buyout of a BP chemicals business; six years later, he bought a plant from that firm to form Ineos.

Net worth: $7.6 billion

LEADERBOARD •

BILLIONAIRES

R. Budi Hartono Country: Indonesia

Net worth: $17.2 billion R. Budi Hartono and his brother, Michael, are the two richest people in Indonesia. The brothers get more than two-thirds of their fortune from their investment in Bank Central Asia. The Hartonos bought a stake in BCA, after another wealthy family, the Salims, lost control of the bank during the 1997-1998 Asian economic crisis. The family first got rich in tobacco and is still one of the biggest clove cigarette makers in the nation. The brothers also own popular electronics brand Polytron, prime real estate in Jakarta, and a stake in gaming startup Razer.

Gina Rinehart Country: Australia

Net worth: $16 billion Rinehart built her wealth on iron ore. In May 2019, a high court ruled that her long-time litigation with two of her children and Wright Prospecting could be settled behind closed doors. The daughter of high-profile iron-ore explorer Lang Hancock, Rinehart took her late father’s bankrupted estate and rebuilt it into something much larger. The biggest piece of her fortune comes from the Roy Hill mining project, which started shipments to Asia in 2015. She is also Australia’s third-largest cattle producer, with a portfolio of properties across the country.

Oppenheimer, heir to his family’s fortune, sold his 40% stake in diamond firm DeBeers to mining group Anglo American for $5.1 billion in cash in 2012. He was the third generation of his family to run DeBeers and took the company private in 2001. In 2014, Oppenheimer started Fireblade Aviation in Johannesburg, which operates chartered flights with its fleet of three planes and two helicopters. He owns at least 720 square miles of conservation land across South Africa, Botswana, and Zimbabwe.

Marcos Galperin Country: Argentina

Net worth: $5.3 billion Marcos Galperin is the founder and CEO of e-commerce platform MercadoLibre, the eBay of Latin America. MercadoLibre, which operates in 18 Latin American countries and Portugal, went public in 2007 on the Nasdaq. Galperin got an MBA from Stanford University. He worked at Argentine oil company YPF for three years and as a summer intern at JPMorgan before starting MercadoLibre in 1999.

Murat Ulker Country: Turkey

Net worth: $4.8 billion

Kim Jung-ju Country: South Korea

Net worth: $11.9 billion Jung-ju is the founder of South Korean online-gaming company Nexon and chairman of its holding company NXC. In 2016, Jung-ju was found not guilty of bribery after being indicted for giving money to a prosecutor who was his friend from university. Jungju resigned as a director of Nexon after the allegation. NXC diversified into cryptocurrency and now holds 83% of Korbit, an exchange based in Seoul. In 2018 Kim pledged $93 million to startups and children’s hospitals and vowed that his children will not inherit his stake in the company. F O R B E S M I D D L E E A S T.CO M

Ulker runs Yildiz Holding, which produces a wide range of food products and non-alcoholic beverages. Ulker bought Belgian chocolatier Godiva in 2007 for $850 million and the U.K.’s United Biscuits in 2014 for $3.2 billion. He then merged United Biscuit, Ulker Biscuit and DeMet’s Candy under the roof of Londonbased Pladis Foods. In early 2019, Godiva announced the sale of parts of its Asia-Pacific business, along with a production facility in Belgium, to PE firm MBK Partners. NOVEMBER 2020

James Ratcliffe photo by Valery HACHE / AFP; R. Budi Hartono photo courtesy of Tatler Indonesia; Gina Rinehart photo by Matt King / Getty Images; Kim Jung-Ju photo courtesy of NXC, Korea; Nicky Oppenhelmer photo by JOHN D MCHUGH / AFP; Marcos Galperin, Bloomberg / Bloomberg via Getty Images; Murat Ulker photo by Anadolu Agency / Getty Images

Country: U.K.

Nicky Oppenheimer & family

James Ratcliffe

P RO M OT I O N

f there is one word that summarises what will drive the future, it is connectivity. It has kept businesses, people and economies going as COVID-19 brought the world to a standstill. Next-gen connectivity promises a new way of living with the Internet of Things and much more, all at powerful 5G speeds. But at the heart of it all is the smartphone—the end-user’s link to all things connected. Mobile phones are no longer being used on their own. Mobile apps focus on improving customer experiences by connecting to other devices such as smartwatches, fitness trackers, vehicles and more. With much more to be added in the near future, the mobile ecosystem is well on its way to an era of intelligent connectivity. To integrate all our products and users into a multiple-access smart device ecosystem, in 2019 we at OPPO pledged to spend $7.2 billion in R&D over the next three years. As of September 30, 2020, OPPO had filed for more than 52,000 patent applications and had more than 21,000 granted patents globally. We have also deployed our 5G standard patents in over 20 countries and regions around the world. We have filed over 3,300 families of global patent applications, declared over 1,000 families of 5G

standard patents to the ETSI, and submitted more than 3,000 5G standard-related proposals to 3GPP. The big change that we foresee is 5G becoming more widespread in the 2020s, with an anticipated 80 million 5G connections across the region by 2025, representing 10% of total mobile subscriptions according to Ericsson. The ultra-high speed, high-reliability, low latency of 5G greatly expands what connected devices can do. The arrival of 3G 20 years ago made it possible to surf the internet on a smartphone. Next, 4G delivered speeds that enabled better video streaming and a whole economy of apps. 5G is different. A faster, higher-frequency version of cellular radio-based 3G and 4G, it delivers powerful and flexible networks that will connect everything to everything, and everything to everyone. OPPO has been a pioneer in promoting the commercialisation of 5G technology. In May 2019, we launched the first commercial 5G smartphone in Europe with the sale of OPPO Reno 5G in Switzerland. This year, despite the challenges of the global lockdown, we launched not one but two 5G smartphones, demonstrating our commitment to accelerating the roll-out of 5G across MENA. Our flagship OPPO Find X2 Pro 5G launched in the region

The thoughts expressed in this advertorial are those of the client. F O R B E S M I D D L E E A S T.CO M

earlier this year, while in September, we made intelligent connectivity even more accessible to consumers in the Middle East by packing 5G into our mid-range offering, OPPO Reno4 Pro 5G. 5G promises to supercharge the Internet of Things and enable a smarter, more connected world. Capable of delivering data at the rate of 10 gigabytes per second, 5G promises to be anywhere from 10 to 100 times faster than 4G. In an intelligently connected environment, the data gathered from hundreds of sensors would travel from your home, to your car, to the office, to your gym, to your doctor, back to your car, and to your home at lightning speed, thanks to 5G networks. The one device connecting you, the end-user, to all these touchpoints is a smartphone. Today, OPPO ranks among the top five smartphone companies in the world and in the Middle East (by shipment), and as we enter the new era of “the integration of all things,” OPPO’s 5G smartphones aim to provide all users with more choice, more value and more convergent experiences.

www.oppo.com/ae

NOVEMBER 2020

BILLIONAIRES

Ethan Xue, President of OPPO MEA, explains why 5G and its powers of connectivity are the key to the future.

LEADERBOARD •

5G Smartphones Are The Key To A Truly Connected World

LEADERBOARD • ECONOMY By Jason Lasrado

Middle East IPOs In 2020 So far

LEADERBOARD •

BILLIONAIRES

Saudi Arabia The Saudi Stock Exchange (Tadawul) is leading IPO activity in the region this year, with four listings with net proceeds totaling $1.4 billion. The kingdom has been encouraging family-owned businesses to list in a bid to deepen its capital markets under reforms aimed at weaning the country from reliance on hydrocarbons revenues. Market caps are as of October 26, 2020.

Egypt Amlak International Date of listing: July 2020 Amount raised: $116 million

Market cap: $3.9 billion

Market cap: $521.8 million

Emerald Real Estate Investments

Dr. Sulaiman Al-Habib Medical Services Group

Sumou Real Estate Company

Date of listing: February 2020

Date of listing: March 2020 Amount raised: $700 million

Date of listing: May 2020 Amount raised: $8 million

Market cap: $9 billion

Market cap: $420 million

Market cap: $42.8 million

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Amount raised: $13 million

NOVEMBER 2020

Photo by FAYEZ NURELDINE / AFP

BinDawood Holding Date of listing: October 2020 Amount raised: $585.2 million

The Egypt Stock Exchange also had one IPO this year.

P RO M OT I O N

Egypt stands ready to kick start 2021 with a positive growth trajectory due to its solid reforms, government growth initiatives and successful financial inclusion efforts accompanied by fintech payment solutions. All pave the way to economic sustainability.

What is your assessment of the current economic climate in Egypt and how positive are you feeling about 2021? Egypt’s economy has been able to weather the COVID-19 crisis on solid ground. Egypt’s GDP for the fiscal year 2019/20 was 3.6% versus an initial plan of 3.8%, and our projected GDP in 2020 according to the IMF will be 2.8%. This is due to the diversified nature of the Egyptian economy and the multiple initiatives that the government has embarked on, such as the 8% loan initiative, which helped sustain growth and create jobs. Recently, the IMF confirmed its confidence in Egypt by engaging it in a rapid financing instrument agreement for $2.7 billion and a stand-by arrangement for $5.2 billion. Global rating agencies such as S&P, Fitch, and Moody’s all affirmed Egypt’s ratings with a stable outlook.

What have been the biggest challenges for the banking sector in 2020 and how is Banque du Caire remaining resilient and on a positive growth trajectory? Banks had to play a critical role to balance between being bountiful with clients while staying risk averse. Banque du Caire has shown agility by offering clients well-suited products with advanced digital solutions in order to ensure that their business flow is not interrupted. For example, we were the first bank in Egypt to perform transactions through QR codes, as well as the first to offer cashless solutions to corporate clients in order to manage their collections efficiently. Recently we have launched corporate internet banking (BDCbusiness) with advanced features that enable clients to operate and manage their financial affairs anywhere anytime. Egypt is transforming itself into a vibrant, modern and diversified economy. Which sectors do you foresee driving the economy forward towards Egypt’s Vision 2030? Education, as it is a corner stone for an advanced future, and logistics given the change in the current dynamics of trade

The thoughts expressed in this advertorial are those of the client.

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With the advent of Fintech, cryptocurrencies and decentralized lending platforms, banks are having to redefine their product portfolios and value proposition. How do you foresee banks remaining competitive in 2021 and beyond? In my view, the industry is witnessing a rapid change globally. As such, well established banks need to smartly adopt. As Fintechs are maturing, and they are covering new ground in the financial industry, I view them as a complementing factor and/or enabler to well-regulated financial institutions’ transformation plans. Banks that are adopting and collaborating with Fintechs will undoubtedly benefit from being ahead of the curve. Cryptocurrencies have yet to be proven as a valid alternative in the absence of adoption, monitoring and governance. Time will tell. How can banks restore confidence and respect from their customers, following the recently-exposed $2 trillion money laundering scandal by over 90 international financial institutions? Transparency is a minimum requirement and anti-money laundering is an integral part of doing any business. Banks should ensure that there are well-suited programs in place and that all systems reflect that and keep the focus on increasing awareness.

www.bdc.com.eg

NOVEMBER 2020

29 ECONOMY

Amr ElShafei, Executive Vice Chairman, Banque du Caire, explains how Egypt’s finance sector is weathering the COVID-19 storm.

LEADERBOARD •

Staying Positive

business. The healthcare sector will also advance to accommodate the recent changes in addressing human needs and perspectives. Digitization will play a vital role amongst all economic sectors and will prevail as a common theme.

• G20 LEADERS • By Claudine Coletti

Group Effort The G20 Leaders’ Summit may be held over just two days, but it represents over a year’s worth of work, organization, and negotiation for the secretariat behind the scenes and many other stakeholders.

This year’s G20 Leaders’ Summit, while the fifteenth overall, is one of many firsts. The first to be held virtually, the first to be hosted in the Middle East and by Saudi Arabia, and the first to be held during a worldwide pandemic. However, it is not the first to be held at a crucial and uncertain time for the global economy—the G20 was created from a need to tackle a common issue through international connections.

economic cooperation.” According to a declaration by the leaders, their united front had worked in tackling and turning around a global crisis. Fast forward a decade and the world—now aware of the potential power of the G20 summit and finding itself in the midst of an economytoppling pandemic, an ongoing trade war, and impending climate change—is watching, waiting, and again hoping for answers.

I Where it began

I How does it work?

When the first G20 Leaders’ Summit was held in Washington, in November 2008,it came at the start of the global financial crisis. The gathered leaders discussed the root causes of the crisis and what actions to take, and committed to fostering an open global economy that embraced free market principals, open trade, and regulated financial systems. These issues fueled the G20 debates for the next two years, until the conversation turned from crisis to recovery. The 2010 summit in Toronto hailed the G20 in its “new capacity as the premier forum for our international

Every year, whichever country holds the presidency sets the agenda. When Saudi Arabia first began its one-year presidency of the G20 in December 2019, it planned to host international government, heads of state, and media representatives across multiple events and locations in and around the capital of Riyadh, unaware of the pandemic that was about to hit. Despite having to completely change the logistics of the event since then, the overarching theme chosen last year was forward-thinking and is still apt today, even when viewed through the lens of 2020.

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This year, under the umbrella of “Realizing Opportunities Of The 21st Century For All,” leaders will explore three sub-themes: empowering people, safeguarding the planet, and shaping new frontiers. These themes are not just discussed at the two-day summit—the secretariat arranges meetings throughout the year between ministers, government, and civil society representatives. This is done via three main tracks: civil society representatives are brought together through “engagement groups,” while the “sherpa” and “financial” tracks organize meetings at a government level. The G20 Leaders’ Summit is the culmination of the year’s work and discussions, and the G20 group’s final decisions and comments are communicated through a “declaration” or “communique,” which is released after the final meeting has been held.

I Engagement groups The G20 engagement groups represent “civil society,” which is a sector that can be considered separate from government or business. According NOVEMBER 2020

Photo by Jacques Witt / POOL / AFP

G20 LEADERS

Images from source

Dr. Reem Alfrayan,

Dr. Abdullah Alhassan,

Abdulmuhsen Alkhalaf,

Executive Director for Engagement Groups for the Saudi G20 Presidency

the Saudi G20 Sous-Sherpa and Executive Director of Policy

Chief Policy Officer of the Saudi G20 Finance Track Program

to the World Health Organization (WHO), civil society refers to “the space for collective action around shared interests, purposes and values, generally distinct from government and commercial for-profit actors.” This includes charities, development NGOs, community groups, women’s organizations, faith-based organizations, professional associations, trade unions, social movements, coalitions, and advocacy groups. “The inclusion of civil society voices is essential to give expression to the marginalized and those who often are not heard,” according to the WHO. Dr. Reem Alfrayan, Executive Director for Engagement Groups for the Saudi G20 Presidency, led the secretariat team that facilitated this year’s engagement group meetings. She was approached by the secretariat on LinkedIn for the role thanks to her unique experience. With a PhD in educational leadership and organization from the University of California Santa Barbara, Alfrayan’s past experience includes working for the Arab Open University, the Supreme Commission for Tourism and Antiques, King Abdulaziz Medical City, and the National Strategy for Women Empowerment through the Women Committee at the Council of Family Affairs. This year there were eight independent G20 engagement groups: the Business 20 (B20); the Youth 20 (Y20); the Labor 20 (L20); the Think 20

(T20); the Civil 20 (C20); the Women 20 (W20); the Science 20 (S20); and the Urban 20 (U20). Each collective held virtual meetings to discuss the financial and socioeconomic challenges affecting its community, with the support of Alfrayan’s G20 secretariat team, who then shared the groups’ policy recommendations with the G20 Leaders’ Summit. These meetings discussed wideranging topics and formulated ideas to create a world in which all people can live, work, and thrive. This included supporting women and young people, as well as ensuring an inclusive recovery and tackling inequality. “Supporting civil society and private sector organizations is a complex formula where the objective is to enable them without interfering with their unique agendas and independence throughout the year,” says Alfrayan. “Engagement groups make sure the voices of civil society, business, women, youth, local government, academia, science, and workers are heard.”

education, employment, energy, environment, health, tourism, trade, and investment. Dr. Abdullah Alhassan, the Saudi G20 Sous-Sherpa and Executive Director of Policy, was a macrofinancial economist working for the IMF when he first met the Saudi G20 Sherpa, His Excellency Dr. Fahad Al-Mubarak in 2018. Once he learnt more about Saudi’s vision to use its presidency to create a positive impact for the world, he took a sabbatical from the IMF to join the team. He has led both the policy team and the Sherpa’s Office as they have planned, developed and implemented an ambitious agenda. “In a truly extraordinary year, we have strived to ensure the group’s effective response to the critical issues facing our world,” says Alhassan. These critical issues include employment challenges facing young people, climate change, and the devastating effect of the COVID-19 pandemic on sectors such as tourism, healthcare, and education. According to Alhassan, labor and employment ministers have already met to promote the G20 Youth Roadmap, agreeing to “take measures to achieve the Antalya Youth Goal through facilitating steady and successful labor market entry and transitions, strengthening support for young people, and tackling the additional challenges faced by young women in particular, in gaining access to quality employment.” The Antalya

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I The sherpa track A G20 sherpa is a personal representative of a head of state or government who helps to arrange the summit. As part of this, the sherpa track organizes meetings between ministers and senior officials that explore socioeconomic issues. This includes topics such as agriculture, anticorruption, climate change, digitization,

NOVEMBER 2020

G20 LEADERS

Youth Goal, set at the leaders’ summit held in Turkey in 2015, aims to reduce the number of youth at risk of being left behind in the labor market by 15% by 2025. Tourism ministers also held extraordinary meetings to address the challenges facing their sector and took action to strengthen its resilience and develop a path to recovery. Discussions around climate change have traditionally been contentious in past G20 meetings, with leaders disagreeing on responsibilities and a way forward. However, Saudi Arabia has sought to find common ground. “We are focusing on our shared objectives as a group,” says Alhassan. In particular, the G20’s Climate Stewardship Working Group has focused on adapting to a Circular Carbon Economy and managing emissions in the industry, food, and mobility sectors. “The kingdom launched an ambitious economic blueprint that includes our efforts to restore coral reefs and protect the environment, as well as our efforts in promoting renewables,” Alhassan adds.

I The finance track The finance track arranges meetings between G20 finance ministers, central bank governors, and their deputies, focusing on fiscal and monetary policy issues. Abdulmuhsen Alkhalaf, Chief Policy Officer of the Saudi G20 Finance Track Program, was working in Washington at the World Bank Group when he was approached for the role. Today he leads the team responsible for planning and executing all G20 Finance Track activities, including developing and coordinating policies and initiatives that aim to address global challenges and promote strong, sustainable and inclusive economic growth. Of course, this year the global economy has been rocked, leaving nations in need of support more than ever. Therefore, in April 2020, G20 Finance Ministers and Central Bank Governors agreed on a G20 Action Plan F O R B E S M I D D L E E A S T.CO M

to support economies throughout the pandemic, which included investing more than $11 trillion. “By far, this is the largest support package on record, and it has lessened the economic jolt and helped prevent worsening growth outcomes,” says Alkhalaf. The secretariat also worked with G20 members to launch the G20 Debt Service Suspension Initiative, which allowed 73 eligible countries to defer an estimated $14 billion owed to bilateral creditors. “Multilateral development banks committed to providing developing countries with $230 billion to support their response to the pandemic, including a commitment of $75 billion to DSSI-eligible countries from April to December 2020,” Alkhalaf adds. Another major issue that emerged this year was that of trust and security as finance becomes increasingly digitized. To address this the G20 Presidency put forward the theme of “Framing Supervisory and Regulatory Issues for the Digital Era” for discussion. As part of this the secretariat worked with G20 members, the Financial Stability Board, and Standard Setting Bodies to develop a “G20 Roadmap to Enhance CrossBorder Payments.” It also worked with the IMF, the Financial Stability Board and the Financial Action Task Force to develop recommendations regarding the regulation, supervision and oversight of global stablecoins. And it worked with the Financial Stability Board to understand and assess the use of technology. “This allowed G20 members to share their experiences and learn how players within the financial system have been incorporating technology into their own practices,” explains Alkhalaf.

becoming clear. The kingdom called for an extraordinary virtual summit in March 2020. During this meeting, according to the secretariat, G20 members committed over $21 billion to support health systems and the search for a vaccine, making over $14 billion available in debt relief for developing nations and injecting over $11 trillion into safeguarding the global economy. As of October 26 2020, the G20 Saudi Secretariat had organized 116 virtual meetings, including the extraordinary summit in March, as well as 26 ministerial-level meetings.

G20 Leaders’ Summits Through The Years 2008 Washington US 2009 London UK 2009 Pittsburgh US 2010 Toronto

Canada

2010 Seoul Korea 2011 Cannes France 2012 Los Cabos Mexico 2013 St. Petersburg Russia 2014 Brisbane Australia 2015 Antalya Turkey 2016 Hangzhou China 2017 Hamburg Germany

I An exceptional year

2018 Buenos Aires Argentina

Early on, this became a unique year in the G20’s history, with Saudi Arabia taking unusual measures when the global impact of COVID-19 started

2019 Osaka Japan 2020 Riyadh Saudi Arabia NOVEMBER 2020

• THOUGHT LEADERS • By Professor Greg Clark, Global Head of Future Cities and New Industries, HSBC

COVID-19 And The Next Cycle Of Riyadh

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of incoming climate disasters and the resilience required of our systems to deal with the adverse impacts of global warming. There is more pressure than ever before for governments to produce de-carbonising lowemission tech pathways, by investing in green energy, power efficiency and optimised storage. But there is optimism that cities around the world will adopt and adjust to most of these “better” behaviors for the long-term. There is also renewed focus on truly universal access to healthy and balanced lifestyles, nutritious produce, public space for exercise and quality medical care. We are likely to observe the rapid development of remote healthcare, including the increasing use of telemedicine and adoption of digital and remote healthcare technologies, such as telehealth, tracking devices, and consumer wearables. Alongside this we will also witness the rise of healthy cities, with greater focus on active travel, sports and exercise, cleaner air, and animated public space. Sub-nationally, we may see more cities and regions creating coalitions to share health equipment. “Sharing” could become a common theme within the Middle East’s network of successful cities. The rapidly growing talent and corporate corridors and links between Riyadh, Abu Dhabi, Dubai, and other large cities shows increasing opportunities for complementary development and specialisation across multiple sectors that will serve the wider region. This is not a zero-sum competition but rather an opportunity for the region to emerge as a leader on the global stage. Riyadh’s opportunity to achieve economic diversification, competitive strength and social renewal post-COVID-19 dovetails neatly with Saudi’s 2030 Vision. Riyadh is intended to be a key focal point of the national economy, a test bed and first mover for technologies and innovations across the kingdom. It can also be the Middle East’s ground zero for a new chapter of growth.

NOVEMBER 2020

THOUGHT LEADERS

As the capital city of the largest economy in the MENA region, Riyadh has evolved over the last 50 years into one of the region’s most important economic, governmental, and cultural centres. How Riyadh drives its next cycle of innovation in a post-COVID-19 world and where it connects with its neighboring cities, will, to a significant extent, determine the region’s speed at embracing the next chapter of economic and societal transformation that will be required after the global pandemic. Aspiring global cities will need to prioritise several areas if they are to thrive post-COVID-19. Fortuitously, the kingdom’s Vision 2030 aligns neatly with the core of these principles, namely sustainable development, enriched human capital, and reinvented flows of trade. Reports say that city and business leaders are unanimous in their ambition not to return to the preCOVID-19 economy but to use the crisis as a catalyst for a more diversified, more equitable, cleaner and greener reinvention. In particular, there is growing appetite for combined policies and approaches towards health, climate and biodiversity. The pandemic has re-articulated the supreme connection between human health and planetary health. The sense of importance paid to the interaction of health systems with food systems and the natural landscape had been eroded, but is now a global priority. The links between air quality and respiratory health are much more visible. There is amplified awareness of the severity of climate challenge and the urgent need for more sustainable economies and infrastructure. COVID-19 is accelerating shifts in consumption and broadening public support for environmental responsibility. Oil price turmoil, for example, may now be seen as an historic opportunity for cleaner energy. There is some concern that COVID-19 is a harbinger

• COVER STORY •

A H M E D A L K H AT E E B

OPEN FOR BUSINESS AHMED AL KHATEEB, SAUDI’S FIRST MINISTER OF TOURISM, IS WORKING TO ATTRACT INVESTMENT INTO A PROMISING SECTOR, WITH AN ESTIMATED $67 BILLION REQUIRED OVER THE NEXT 10 YEARS. AS THE KINGDOM’S TOURISM INDUSTRY GROWS, WHAT MORE DOES IT NEED?

BY CLAUDINE COLETTI

F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Image from source

Ahmed Al Khateeb, Minister of Tourism for Saudi Arabia F O R B E S M I D D L E E A S T.CO M

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A H M E D A L K H AT E E B

This year has been a pivotal one in Saudi Arabia’s journey as it opens its borders to the world. In February 2020, King Salman bin Abdulaziz Al Saud issued a royal decree that transformed the Saudi Commission for Tourism and National Heritage into the kingdom’s first Ministry of Tourism, with Ahmed Al Khateeb chosen to be Saudi’s first ever Minister of Tourism. The kingdom also created a national destination promoter, the Saudi Tourism Authority, and launched a new $49 billion Tourism Development Fund made up of $4 billion in capital investment and $45 billion in agreed MoUs with private banks. These developments are a sign of Saudi’s determination to become one of the world’s premium tourism destinations in the next ten years. Despite the ongoing impact of the global COVID-19 pandemic, the kingdom is pushing ahead with the construction of a number of “giga-projects”—huge developments designed to attract international and domestic tourists, create millions of jobs, and plow foreign direct investment into the economy. This opens the door for investors, with tourism a key part of Saudi’s Vision 2030 plan for economic diversification. “The opportunities for domestic and foreign investors are abundant,” says Al Khateeb. “By investing now, our partners can directly contribute to the growth and development of our nascent international tourism sector.” To achieve its tourism goals Saudi will need an estimated $67 billion to be invested over the next decade, according to Al Khateeb. Plans are currently in place to build 854,000 more hotel rooms in the kingdom by 2030, 70% of which will be private sector funded, as well as increase airport capacity to accommodate 100 million passengers. By 2022, the kingdom intends for tourism to be F O R B E S M I D D L E E A S T.CO M

contributing 4.5% to its GDP, with an additional 260,000 jobs and 150,000 hotel rooms created, and 62 million visits a year: 29.5 million international and 32.5 million domestic. This means that for investors there are a number of key opportunities in the pipeline, the biggest of which are the Red Sea Project, NEOM, Qiddiya, and Amaala. “Developing the kingdom’s tourism sector will connect Saudi to the world, drive social progress, and diversify our economy,” reveals Al Khateeb. “The private sector is central to achieving these goals.” Giga-projects are vital to these plans. “[These] leverage Saudi Arabia’s greatest resources— imagination, ambition, and vision—to create new blueprints for sustainability and livability that can be replicated worldwide,” says the minister. “Harnessing technology, we will combine nature, adventure, events, and cultural attractions to form integrated economic ecosystems.”

“Developing the kingdom’s tourism sector will connect Saudi to the world, drive social progress, and diversify our economy.” The sustainable tech-based city of NEOM in the north-western region is arguably the biggest among the ambitious plans, but they are all impressive. The luxury Amaala resort, also located in the northern region, will cover an area of more than 4,155 square kilometers. The Qiddiya project, spread across 366 square kilometers in Riyadh, is designed to be Saudi’s new capital of entertainment, sport, and art as the kingdom seeks to increase the population’s household spending on entertainment from 2.9% to 6.0% by 2030—an expected $8 billion market. Then there’s the Red Sea Project, a 28,000-squarekilometer development 500 kilometers north of Jeddah, including an archipelago of more than 90 islands, which reportedly broke ground in April. The luxury destination boasts of vast areas of natural beauty and access to some of Saudi Arabia’s most important cultural treasures, as well setting a new standard for sustainable development. Once complete in 2030, it will house 50 hotels and around 1,300 residential properties across 22 islands and six inland sites. Phase one, which NOVEMBER 2020

Photos from www.amaala.com

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will include 16 hotels offering 3,000 hotel rooms across five islands and two inland sites, is reportedly on track to welcome its first guests by the end of 2022. “The Red Sea Project is the world’s most ambitious regenerative tourism destination, bringing together luxury, culture and sustainability in one of the world’s last natural hidden treasures,” says CEO of the Red Sea Development Company, John Pagano. So far the company has awarded more than 500 contracts worth over $2 billion in total—70% of which have gone to Saudi companies. Once up and running, the destination is forecast to contribute $5.8 billion to Saudi’s economy every year. Smaller-scale investments are also available. According to Al Khateeb, Saudi’s National Tourism Strategy has identified 24 top sites, 38 with high potential, and an additional 500 F O R B E S M I D D L E E A S T.CO M

complementary sites that will cater to tourists. Saudi plans to double the number of UNESCO World Heritage Sites in the kingdom by 2030. One of the most treasured of these is in Diriyah, one of the kingdom’s oldest cities and home to the undulating walls and turrets of the Al-Turaif district, which was named a UNESCO World Heritage Site in 2010. “The kingdom’s UNESCO sites are tangible tourism products, rooted deeply in the destination’s cultural equity and history, and they will soon become internationally famous icons, forming part of the travel itineraries for the world’s most discernible globetrotters,” says Jerry Inzerillo, CEO of the Diriyah Gate Development Authority. Aside from the opportunities ahead, 2020 has brought with it unprecedented challenges and some historical firsts for the kingdom. Al Khateeb is leading

The luxury Amaala resort, located in the northern region, will cover an area of more than 4,155 square kilometers.

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Saudi’s tourism drive as it holds the G20 presidency and hosts the G20 summit virtually for the first time. But this is also a year in which the global tourism industry has found itself dealing with the most severe crisis it has ever faced. As borders closed and planes were grounded, travel came to a grinding halt in Q2 2020, and although movement between countries is now possible, an overall 60-80% decline in international tourism is anticipated worldwide in 2020, according to the UNWTO. Al Khateeb was appointed just as COVID-19 began its rapid spread across the world. In April, three months after he took the role, Al Khateeb co-hosted a virtual roundtable as the chair of the G20’s Tourism Track with Gloria Guevara, President and CEO of the World Travel and Tourism Council (WTTC) to discuss the growing pandemic threat to the industry.

“Saving jobs can only be achieved through enhanced international collaboration, common protocols and testing procedures, to minimize uncertainty and boost consumer confidence.” According to the WTTC, last year the travel and tourism sector was responsible for 330 million jobs globally, and 10.3% of global GDP, worth $8.9 trillion. By the end of 2020, the council estimates that more than 197 million jobs and $5.5 trillion could be lost globally. As a result, on October 7, 2020, more than 45 CEOs and members of the WTTC presented a detailed “100 Million Jobs Recovery Plan” to a virtual meeting of the G20 tourism ministers as they gathered ahead of the G20 Leaders’ Summit in November. The WTTC’s plan outlined 12 key principles and 12 private sector actions. “Saving jobs can only be achieved through enhanced international collaboration, common protocols and testing procedures, to minimize uncertainty and boost consumer confidence,” says Al Khateeb. It was the first time that tourism leaders from the public and private sector had convened. “The nature of this F O R B E S M I D D L E E A S T.CO M

meeting cannot be underestimated,” said Guevara in a statement at the time. It’s a challenging context in which to be taking steps towards expanding your reach as an international tourism hub, but Saudi is determined, prosperous, and well prepared. It is already hugely successful as a religious tourism hub. Home to the holy city of Makkah al-Mukarramah, Saudi hosted 19.1 million Umrah pilgrims and 2.5 million Hajj pilgrims in 2019. This year, due to restrictions, only 10,000 Hajj pilgrims from Saudi Arabia were permitted and Umrah was suspended for nearly seven months. From November, restrictions are gradually being lifted to allow pilgrims in from outside the kingdom. Saudi plans to be welcoming 30 million Umrah visitors every year by 2030, as well as 4.5 million international Hajj visitors. Despite restrictions, the minister says that this year also witnessed the launch of Saudi’s biggest ever domestic tourism campaign. “The Saudi Summer campaign led to a 33% increase in tourism-related spending through points of sales across 10 destinations compared to the same period in 2019,” says Al Khateeb. It also coincided with the launch of the first Red Sea cruises in August. “This has enabled us to prepare for the return of international visitors, we hope, early next year,” he adds. While many international tourists may not have previously considered Saudi Arabia as a holiday destination, there is already evidence of growing interest from across the world. In September 2019, Saudi introduced e-visas for non-religious tourists from 49 countries for the first time. More than 77,000 tourist e-visas were issued over the first 33 days, according to the Saudi Ministry of Foreign Affairs. Within the first six months more than 400,000 were issued, according to Al Khateeb. China, the U.K., Malaysia, the U.S., and Canada were reportedly the most popular countries for inbound visitors. This is a good sign for Saudi. “As soon as visitors come to our country and meet our people, they will experience for themselves the warmth of our people, our rich heritage, vibrant culture and breath-taking natural beauty,” says Al Khateeb. Overall, Vision 2030 aims to increase the private sector’s contribution to Saudi’s GDP from 40% to 65% and increase foreign direct investment from 3.8% to 5.7%. Experts agree that despite a rough year, the future looks positive if the kingdom achieves its investment goals. “Given the promising state of the tourism sector in Saudi Arabia, the ability to rebound and achieve the country’s tourism NOVEMBER 2020

Image from source

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39 A H M E D A L K H AT E E B

ambitions will depend on the government’s ability to dedicate financial resources to the tourism development plans, as it re-assesses the reallocation of resources in light of the economic impact of COVID-19,” says Antoine Nasr, Partner and Government Practice leader at Kearney Middle East. So, as the global travel and tourism industry continues to weather the 2020 storm and take steps towards recovery, Saudi continues unabated with its plans. By 2030, the kingdom plans to be a top five global tourism destination, hosting 100 million international and domestic tourist visitors every year, increasing the sector’s contribution to GDP to 10%, and creating a million additional jobs for Saudis, raising total tourism employment to 1.6 million. In another sign of its commitment to the tourism sector, in September the kingdom announced that it will become home to the first regional office for the UN’s World Travel Organization (UNWTO), including a statistics center. The office will serve as a hub for the UNWTO to 13 countries in the Middle East and aims to become a leading authority on tourism statistics for the region. According to Al Khateeb, over the coming year Saudi will continue to develop its offerings, support the sector through innovation and investment, and lay foundations for a thriving and sustainable industry. “Saudi Arabia is undergoing a historic transformation in economic and social terms, and our hospitality and tourism industries are at the heart of this,” explains the minister. “Saudi Arabia is ambitious and our young tourism sector is no exception.”

Philip James Jones, Chief Destination Marketing Officer for the Royal Commission for AlUla

Ancient AlUla Saudi Arabia has many hidden treasures that are being developed to showcase its naturally breathtaking scenery and cultural heritage to the world, much of which has never before been open to international tourists.

ne such relatively-unknown project that has actually been under development for two years is that of AlUla. A governorate of the Medina region in the north-west, AlUla is home to three heritage sites, which are now open to the public: Hegra, Dadan, and Jabal Ikmah. The destination hopes to be welcoming two million visitors a year by 2035. “The main travelers we are focusing on are two,” says Philip James Jones, Chief Destination Marketing Officer for the Royal Commission for AlUla. “For one, luxury seekers who want luxury experience, but also adventure travelers who are looking for something unique and different that they can’t experience anywhere else.” AlUla offers visitors outdoor experiences and luxury relaxation amongst sandy and rocky terrain and historical UNESCO World Heritage Sites. At the moment the team are focused on booking smaller groups of tourists for outdoor activities, which makes it easy to comply with COVID-19 restrictions. However, in future they have bigger dreams. “We are going to have a series of events that will take place at different periods throughout the year focusing on culture, heritage, entertainment, and adventure,” explains Jones. In 2018 and 2019, the three-month long Winter Tantura festival gave visitors a taste of things to come. “The potential is unlimited and the opportunity is amazing.”

NOVEMBER 2020

• ECONOMY • By Nermeen Abbas

Vital Contribution To Saudi’s Economy Makkah plays a vital role in Saudi Arabia’s economy, with around 10 million international visitors hosted every year spending an estimated $20.1 billion, according to Mastercard’s Global Destination Cities Index 2019.

Makkah is one of Saudi Arabia’s 13 administrative regions or provinces. It covers 17 governorates, including the capital Makkah al-Mukarramah— “Holy Makkah”—which attracts millions of pilgrims every year. Religious pilgrims contribute the most. Before the pandemic struck, Umrah and Hajj pilgrims combined were reportedly expected to spend more than $12 billion this year. The total number of Umrah pilgrims reached 19.1 million in 2019, including 7.4 million from abroad. While the number of Hajj pilgrims reached 2.5 million, including 1.8 million from outside the country. F O R B E S M I D D L E E A S T.CO M

I Umrah and Hajj in 2020 Despite the key role of Umrah in Saudi Arabia’s economy, the kingdom took a critical decision this year to contain the COVID-19 outbreak and exceptionally suspended Umrah for nearly seven months. On October 4, the authorities began to gradually allow pilgrims to undertake the yearround Umrah pilgrimage, starting with those residing within the country as part of a four-phase plan. From early October, 6,000 citizens and residents from within the kingdom performed the Umrah per day in the first stage, taking into account the precautionary health

measures of the Grand Mosque. And starting from October 18, citizens and expatriates in the kingdom were allowed to visit and pray at 75% capacity. Visitors from outside Saudi Arabia were permitted from November 1, when the capacity of Umrah was raised to 20,000 pilgrims per day. Umrah will resume at full “natural capacity” once the COVID19 threat is eliminated. The gulf country also organized the smallest and most scaled-down Hajj in modern history in late July, hosting up to 10,000 Muslims taking part, in contrast to the 2.5 million who participated in 2019. NOVEMBER 2020

kiraziku2u / Shutterstock.com

ECONOMY

Makkah’s

BVFS / Shutterstock.com

I Expansion plans The Hajj and Umrah pilgrimages are one of the key pillars of Vision 2030, which plans to increase capacity to be able to welcome 30 million international Umrah visitors every year, as well as 4.5 million international Hajj visitors in 2030. The Council of Saudi Chambers estimates that from 2018 to 2022 spending associated with the pilgrimages will generate $150 billion in income and create up to 100,000 permanent jobs related to the Hajj, according to the Oxford Business Group in a recent study. To achieve these targets, the government plans to invest nearly $30 billion over the next 10 years, with $24.8 billion being invested from 2018 to 2020 and $5.2 billion between 2020 and 2025. The investments include the third expansion to the Two Holy Mosques, which will modernize and increase the capacities of the airports, and the Makkah Metro project, which complements the railroad and train projects that will serve visitors to the Holy Mosques and holy sites. The third phase of the expansion of Makkah’s Grand Mosque aims to accommodate more than two million worshippers at the same time. The project F O R B E S M I D D L E E A S T.CO M

includes 12 major components, including the holy mosque’s main expansion building, pedestrian-use tunnels, transportation stations, and bridges leading to the mosque. The previous expansions of the Two Holy Mosques led to a tripling in the number of foreign Umrah visitors over the last decade, reaching eight million in 2015.

I Cultural importance

Key facts The Makkah region is located in the west of Saudi Arabia. It has a

population of nearly nine million. The region has

17 governorates including Makkah al-Mukarramah and Jeddah. There were

19.1 million Umrah pilgrims in 2019, and

2.5 million Hajj pilgrims. Around

10 million international visitors are welcomed every year.

$30 billion is being invested between 2018 and 2025 to develop the Hajj and Umrah sectors.

Makkah falls within the historic Hejaz mountains in the western part of Saudi Arabia along the coastline of the Red Sea. It was historically known for being at the center of the ancient trade routes at the crossroads of global trade. The region’s capital is the holiest place in Islam. Known as “Holy Makkah” or “The holy city,” it is the birthplace of prophet Mohammed, home of the Holy mosque “Masjid al-Haram” which has the Kaabah, the direction of Muslim prayer and the location for the Hajj and Umrah journey. The Makkah region also includes the city of Jeddah, which is the country’s main port city along with 15 other cities such as Taif, Rabigh and Al Lith. According to a study conducted by the King Abdullah Petroleum Studies and Research Center in December 2019, the Eastern Province, Al-Riyadh, and Makkah together accounted for almost 70% of Saudi Arabia’s economically active population and generated around 60% of the country’s total GDP in 2017. Makkah, with 22% of the country’s economically active population, accounts for a 13% share of its GDP, which amounted to $688.6 billion in 2017 and is expected to reach $680.9 billion this year. The population of this province is nearly nine million. The study’s calculations were based on 2017 numbers when the kingdom had around 19.1 million Umrah pilgrims and 2.4 million Hajj pilgrims. It also showed that Makkah had the country’s lowest GDP per capita. “This is unsurprising since Makkah’s main activity is religious tourism, a sector with a higher labor intensity than that of oil extraction, requiring a more capital-intensive structure,” according to the study. NOVEMBER 2020

41 ECONOMY

The Ministry of Hajj and Umrah issued strict guidelines for providing services to Umrah performers from outside of Saudi Arabia by Umrah companies and licensed travel agents outside the kingdom. The protocols include that the age range for Umrah performers from outside the kingdom should be set at 18 to 50 years and a PCR examination certificate with a negative result should be issued by a reliable laboratory in the country of the Umrah performer, provided that it does not exceed 72 hours from the time of taking the sample until the time of departure to the kingdom. A prior reservation is also required to perform Umrah and prayer in the Grand Mosque, to visit the Prophet’s Mosque, and to pray at the Holy Rawdah at the Prophet’s Mosque in Madinah, according to the controls and capacity approved by the application of Eatmarna.

• THOUGHT LEADERS • By Michael Camburn, Bahrain and KSA indirect tax leader at Deloitte Middle East

THOUGHT LEADERS

Saudi Arabia’s Vision 2030 Has Had A Significant Impact Through RETT And VAT Changes Anyone who may have wondered whether Crown Prince Mohammed Bin Salman’s Vision 2030 would result in the positive actions required to move Saudi Arabia’s economy away from being heavily based on oil revenues and subsequent public sector spending need no longer be in any doubt. The last three years have seen an extraordinary shift in how Saudi’s Ministry of Finance has sought to raise tax revenues from the private sector through the introduction of three different indirect taxes. 2017 saw the introduction of excise taxes for tobacco, energy drinks, and carbonated drinks. The end of 2019 saw the expansion of the tax to also cover electronic smoking devices/liquids used and the addition of sugar-sweetened beverages. Within this context, there is an underlying public health policy to taxing such items—the trick has been to ensure the right balance of generating revenues without comprising the public health angle, which is the long-term intent. VAT, introduced in 2018, has probably had the biggest impact in the kingdom. It applies across a very broad base and thus reaches into many parts of the economy. There are limited exceptions to the tax; most notably medicines, certain investment metals, and some financial transactions are not within the scope of the tax, and more recently land and property sales have also been excluded. Introduced with a comparatively low rate of 5%, collections from VAT have more then met expectations. 2018 saw VAT collect approximately $12.5 billion. The compliance rate is estimated to be over 90% for local Saudi-based businesses, which F O R B E S M I D D L E E A S T.CO M

for a new tax is better than expected. The rate of VAT was trebled to 15% from July 1 2020. In simple macroeconomic terms, one would expect that in the absence of the impact of COVID-19 on the economy the VAT take would at least double (as a conservative estimate), therefore the treasury should expect in excess of $26.6 billion when the economy returns to normal per annum. From a base of zero in 2017 to this level in 2020 is a remarkable achievement. VAT no longer applies to the sale of real estate— both residential and commercial are now exempt. VAT did apply (from July 1) at 15% making for a somewhat illiquid market. However, in lieu of VAT, Real Estate Transaction Tax (RETT) was introduced from 4 October 2020 and will apply at a rate of 5% on all land and property sales. There are some exceptions, most notably inheritances, intra-family sales and certain charitable donations and similar, but other transactions— including the disposal of shares in property-related companies—will be caught by the tax. Finally, in a year that has seen so much challenge and disruption for the private sector, the General Authority for Zakat and Taxation introduced an amnesty for VAT (running to 31 December 2020), which allows companies that have been delinquent in their past filings and registration requirements to be able to avoid paying penalties. VAT revenues continue to be otherwise apparently strong given overall difficult global market conditions. This may set out a different approach around compliance and enforcement for the future, which would be welcomed by taxpayers who are still adapting to the tax. NOVEMBER 2020

LEADERS’ INSIGHT REPORT I Investing In Ethics Ayman Maamoun Tamer, Chairman of the Tamer Group, discusses how the 98-year-old family business continues to innovate and keep ethics at its core.

I Power In Communication Nasser Sulaiman Al Nasser, Group CEO of stc, discusses how the company has grown and developed this year to meet new challenges, and how it continues to put equality and technological advancement at its core.

I Prudent Ethical Investing Samer Abu Aker, CEO, SEDCO Capital, reveals how the firm has maintained its strong performance and shares his views on markets.

I A World-First Opportunity Jerry Inzerillo, CEO of the Diriyah Gate Development Authority, reveals how Saudi Arabia, with the presidency of the G20, is in a unique position to support, reignite and boost the region’s tourism industry, as discussed at the public and private sector tourism forum.

I Supporting The Growth Of A Kingdom Dr Ibrahim Almojel, CEO of the Saudi Industrial Development Fund (SIDF), explains the purpose and growth journey of one of the kingdom’s most important funds.

F O R B E S M I D D L E E A S T.CO M

I From Opportunities To Success Stories Naif Saleh Alrajhi, Chairman and CEO at Naif Alrajhi Investment, explains what makes the company unique for investors and how it has consistently grown over nearly 20 years.

I Time For Optimism Abdullah Ibrahim Alkhorayef, CEO of the Alkhorayef Commercial Company and the Alkhorayef Industrial Company shares his insights on Saudi’s economic markets and Vision 2030.

I Investing Transformed Abdulrahman AlQahtani, CEO of Daal Ventures, talks about how 2020 has changed his perspective and how 2021 is shaping future business.

I Powering A Bright Future Eng. Saif S. AlQahtani, President and CEO of the King Salman Energy Park (SPARK), discusses energy supply chain investments in Saudi Arabia.

I Evolving With Consumers Faisal Abdullah Al Jedaie, CEO, Arabian Centres, explains how they are differentiating and why he’s optimistic for 2021.

I Going The Distance Fady Nassif, CEO of GoBus Egypt, reveals his plans for the brand and how it has managed to grow and evolve in a challenging year.

NOVEMBER 2020

43 THOUGHT LEADERS

SAUDI

LEADERS’ INSIGHT REPORT

The G20 marks an unprecedented year, as Saudi marks another page in its history.

hile the Kingdom of Saudi Arabia is busy working towards its mission to diversify its economy as part of its Vision 2030, the country is also seeking to play a main role in strengthening the global economy. November this year will see it host the G20 Leaders’ Summit for the first time in its history, chaired by His Majesty King Salman bin Abdulaziz Al Saud. The G20 Leaders’ Summit, which was kicked off in the wake of the 2008 global financial crisis, occurs this year amid exceptional circumstances as world leaders urge solidarity against

the backdrop of the pandemic. The economies of the G20 countries are expected to contract by about 4% to reach $65.8 trillion in 2020, down from $68.6 trillion a year ago. G20 members represent around 80% of the world’s economic output, which is projected to be worth $83.8 trillion in 2020, two-thirds of the global population, and 75% of international trade. They represent the voices of 4.6 billion people around the world. The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Republic of Korea, Russia,

CMY

Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

A Historic Year For The G20

Saudi Arabia, South Africa, Turkey, the U.K., the U.S. and the EU. With a population of over 32 million and a GDP of $793 billion in 2019, Saudi Arabia has the largest economy in the Middle East and the 16th largest among the G20 not including the EU, putting it ahead of Turkey, Argentina and South Africa. However, GDP is expected to drop to $680.9 billion in 2020. The pandemic crisis, healthcare plans, and the recovery of the global economy are expected to be discussed at the top of the G20 agenda this year. Earlier this year, Saudi hosted an exceptional virtual meeting to discuss the developing pandemic at the time. “At this critical time, with the world facing the coronavirus pandemic, which affects humans, health systems and the global economy, we meet with the G20 in an exceptional summit; To come up with initiatives that fulfill the hopes of our people, strengthen the role of our governments, and unite our efforts to confront this pandemic,” said His Majesty King Salman bin Abdulaziz Al Saud on Twitter in March 2020 as

SAUDI

LEADERSâ&#x20AC;&#x2122; INSIGHT REPORT

The Saudi G20 Presidency joins the United Nations in discussing solutions to advance financing for Development in The Era of COVID-19 and Beyond

The Extraordinary G20 Digital Economy Ministerial Meeting

G20 Extraordinary Energy Ministers Meeting

Minister of Tourism Ahmed bin Aqil Al-Khatib and the Secretary General of the World Tourism Organization (UNWTO) Zurab Pololikashvili, during the Future of Hospitality Summit held on sidelines of Kingdom's G20 Presidency, October 26, 2020

Foreign Minister Inaugurates Workshop for Heads of the Kingdom's Diplomatic Missions to G20 States

Saudi Arabia's Minister of Energy Prince Abdulaziz bin Salman Al-Saud

Image credits: Saudi Press Agency; G20 Saudi Arabia

Prince Badr bin Abdullah bin Farhan Al Saud during the inaugural meeting with culture ministers and officials from international organizations who discussed heritage preservation, sustainable development and culture as a catalyst for economic growth

LEADERS’ INSIGHT REPORT

G20 Framework Working Group Virtual Meeting

Saudi Health Minister Tawfiq Al-Rabiah at the G20 Health Ministers Virtual Meeting under the Saudi presidency

G20 Finance Ministers and Central Bank Governors Virtual Meeting led by Saudi Minister of Finance and acting Minister of Economy and Planning, Mohammad Al-Jadaan

Deputy Minister of Human Resources and Social Development, Majid bin Abdulrahim Al-Ghanimi during the inauguration of International Social Innovation Forum

Extraordinary G20 Agriculture Ministers’ Virtual Meeting

the virus erupted. In November, on the sidelines of the virtual meeting of the cultural leaders, Saudi’s Ministry of Culture announced an initiative to establish a world-class center dedicated to the management, restoration and protection of underwater cultural heritage in the Red Sea and the Arabian Gulf. The center will be affiliated with the Ministry’s Heritage Commission and will be responsible for developing the sector in Saudi Arabia and the region. The G20 meetings also touch upon enhancing trading ties. “In these challenging times, the need for an open, fair and rules-based multilateral trading system is critical to support global economic recovery,” stated Majid bin Abdullah Al-Qassabi, Minister of Commerce and Investment of the Kingdom of Saudi Arabia in a previous virtual G20 trade and investment ministerial meeting. Regional bodies, including the Arab Monetary Fund, the Islamic Development

Bank, the Chair of the Association of Southeast Asian Nations from Vietnam, the Chair of the African Union from South Africa, and the Chair of the Gulf Cooperation Council from the U.A.E., are also invited this year. Spain is a permanent guest invitee to the G20 meetings, and in 2020, Jordan, Singapore and Switzerland are also invited guests. So far the G20 countries have: contributed over $21 billion to support the production, distribution, and access to diagnostics, therapeutics, and vaccines; injected over $11 trillion into safeguarding the global economy; and launched a debt suspension initiative for the least developed countries that would allow beneficiary countries to defer $14 billion in debt payments due this year and use these amounts instead for financing their health systems and social programs. As 2020 comes to a close, the world will be watching and waiting to see what further help is coming.

“At this critical time, with the world facing the coronavirus pandemic, which affects humans, health systems and the global economy, we meet with the G20 in an exceptional summit; To come up with initiatives that fulfill the hopes of our people, strengthen the role of our governments, and unite our efforts to confront this pandemic.” - His Majesty King Salman bin Abdulaziz Al Saud

Image credits: G20 Saudi Arabia

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Investing In Ethics Ayman Maamoun Tamer, Chairman of the Tamer Group, discusses how the 98-year-old family business continues to innovate and keep ethics at its core.

The value of environmental, social, and governance assets in investing has grown to $40.5 trillion globally, how has this impacted the strategy of the Tamer Group? Companies around the globe have to act on their purpose, which now includes not only making profit but adhering to Environment, Social, Governance and Data stewardship (ESG&D). ESG&D considerations are increasing in importance today. Such investment in the ecosystem opens the eyes of all industries to the need to build more sustainable business models with all stakeholders. Tamer is a family business preparing today to introduce the fourth generation to be part of the management team. For the past 98 years serving the market in Saudi Arabia, Tamer has taken many initiatives to ensure sustainability of the business, which has survived for many generations. We have always kept the 3Ps in our strategy: people, planet and profit.

What changes have you made to make the Tamer Group more sustainable? We are working to adopt common metrics and to eventually have clear and transparent reporting on the impact we are having on the planet and society, in addition to our other stakeholders. We need to look at climate change, nature loss, and fresh water availability among other things. And for people, we need to look at their wellbeing, dignity, and equality, and of course their skills and development for the future. Although it sounds simple, I have realized that adopting good governance and focusing on sustainable value creation to all stakeholders is the only way forward. This should of course include our planet. Examples of such metrics under governance includes having a clear purpose for the company and having clear stakeholder engagement as well as ethical behaviors, such as anti-corruption. We introduced corporate governance, segregation of duties and separation of ownership from management. This journey took almost two years to complete. We adopted a

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new strategy to serve Saudi patients and consumers through normal and tough periods. We gained the trust of our customers by being committed to serving them by providing the best quality products at the right time. We established our CSR arm, “SA’AID,” to give forward and contribute to the community in various projects. How does your SA’AID program tie in to the Sustainable Development Goals? SA’AID in Arabic means “forearm,” which symbolizes the part of the body that connects the body (“the community”) and the hand (“the company”). In English, “SA” is an abbreviation of Saudi Arabia, while

“AID” represents reaching out and collaborating. The Sustainable Development Goals are a complete mission that will require further focus and resources in order to achieve transparent reporting and real progress in this domain. SA’AID is just one arm managing our social community services, which include supporting different projects that focus on leveling up health, education, women empowerment, art and culture, workplace wellness, and community development for different categories of the community. Where do you think growth in Saudi’s pharma sector will come from over the next ten years? Saudi’s pharma sector grew from $7 billion in 2015 to $8.6 billion in 2019. Growth drivers for total market were mainly oncology, diabetes, and rheumatological diseases (immunotherapy). Vaccines and other biological drugs will also grow substantially in this market. The government sector will remain the main driver for growth. The healthcare system in Saudi is and will still be supported by government services. Private sector contribution is increasing with all kinds of privatization initiatives supported by Saudi Arabia’s Vision 2030, but still the government will have the larger share of contribution.

We adopted a new strategy to serve Saudi patients and consumers through normal and tough periods. We gained the trust of our customers by being committed to serving them by providing the best quality products at the right time. How has Tamer Group’s governance evolved over the years? Family businesses are often precariously short-lived and are vulnerable when it comes to handing down the business, especially from one generation to another. However, such a predicament can be overcome if there is transparency, accountability, family trust, no conflict but healthy discussion, and good leadership. Tamer Group has been governed according to an implicit agreement based on these principles, rules, and values among the members of both the second and third generations. We have established a more formalized and structured governance within the family through a Family Constitution, and within the business by implementing the best corporate governance practices whether those practices are mandatorily required or not. How has Saudi’s Vision 2030 changed the way you do business? Digital transformation plays a major role in Saudi’s Vision 2030. Tamer Group has started to sync with the Ministry

of Health in many initiatives, such as through its national screening program, and the national VNA and tele-radiology platforms. These initiatives help to share the experience of resources from Ministry of Health hospitals with other hospitals, which do not have the needed resources, to reach more patients and provide the best healthcare service for the Saudi community. The localization of all industrial sectors is a central tenet of Vision 2030. Tamer Group is on a mission to develop the organization and the healthcare industry to help increase the income of the kingdom, generate job opportunities, and brighten the future for younger generations. The group has invested in global and local startups. What are the factors that you consider before investing in a startup? The first thing we consider in investments is the ethics of the industry we are entering. We often look at investments that have a holistic advantage to both the family office and regionally for the holding operating group. These investments include healthcare, pharmaceuticals, medical devices, manufacturing pharmaceuticals and vaccines, consumer nutrition products, consumer goods, and beauty products.

www.tamergroup.com

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LEADERSâ&#x20AC;&#x2122; INSIGHT REPORT

Power In Communication Nasser Sulaiman Al Nasser, Group CEO of stc, discusses how the company has grown and developed this year to meet new challenges, and how it continues to put equality and technological advancement at its core. What has been your biggest challenge this year and what has been your biggest success? Undoubtedly, the Covid-19 pandemic was the biggest challenge that we have faced this year. Yet, this terrible situation also represented an opportunity for stc to live up to its expectations as a national champion, not only from an infrastructure and customer experience perspective, but also from a corporate social responsibility perspective. The lockdown resulted in the need for remote work, health, and education, which in turn dramatically increased traffic in our network. Thanks to our technological leadership and agility, stc was able to enhance capacity rapidly to maintain the required levels of speed and reliability to support the countryâ&#x20AC;&#x2122;s needs. They were able to continue operating as normal as possible and enable the accelerated adoption of new digital ways of working and accessing services. Our large investments in the digital transformation of our customer touchpoints allowed us to seamlessly shift our interactions to safe digital channels, without compromising on the high level of experience and speed that our customers have come to expect from stc. Most importantly, stc was able to contribute to ease the economic challenges that the pandemic represented to families and small businesses, by providing more capacity and services for the same price and extending financial facilities. Finally, stc was able to do well by its employees, its most important asset, by quickly adopting new digital ways of working, developing and strictly implementing health protocols to ensure the safety of all employees and creating new workingfrom-home policies that will allow us not only to face this crisis but the post-Covid-19 The thoughts expressed in this advertorial are those of the client.

world that is coming. All of this was achieved while stc was still able to deliver strong financial results and value to its shareholders. How do you balance cost controls with maintaining high levels of innovation during these tough times? We believe that it is precisely at these times that innovation, dynamism, and agility are required to be able to face the challenges. Innovation is the only way forward because simple cost-cutting initiatives will not allow us to continue having a sustainable business. Our DARE strategy, which we have revised during this period, reflects our view that innovation will have to be at the center of our future business. Specifically, we will focus on innovating in the way we extract value from the assets in our balance sheet today. We need to continue innovating so that we digitize our operations and ways of working, so that we transform our cost in a more structural manner, drive efficiencies and gain operational agility. And we will also continue innovating in new digital products and services for our customers to complement our revenue streams as exemplified by our successful incursions into digital financial services and digital media. We will also have to innovate in the way that we invest and enter into new opportunities, with partnerships, co-creation and new revenue models becoming more prominent, enabling us to share investments and benefits as is prevalent in the new digital economy. Saudi Arabia has held the rotating presidency of the G20 member states this year. What impact is the kingdom’s growing prominence on the global stage having on stc’s operations? Our DARE strategy was developed with the objective of contributing to the ambitions of Vision 2030 and our shareholders. The kingdom’s presidency

of the G20 has simply reinforced and made more prominent our commitment to deliver on our objectives of transforming our company into a leading digital and telecommunications player by expanding both our scale as well as our scope, venturing into new digital services like digital media or digital financial services. This prominence has also accelerated and enhanced other commitments stc already had in the corporate social responsibility arena. While sustainability and strong corporate governance were already part of stc’s DNA, our objective is to become a role model of corporate social responsibility and sustainability and follow the country’s leadership in contributing to the UN’s Sustainable Development Goals. To achieve this, we have clearly established this as a strategic objective in our refreshed DARE strategy and created a special top management committee to drive the implementation of our corporate responsibility and sustainability strategy. An integral part of Saudi Arabia’s transformation process has been to open up employment opportunities to women. What is stc doing in this regard? We are committed to having a diverse workforce across business areas and support units, simply because we believe that a diverse staff allows us to effectively draw on different perspectives to enhance the quality of our ICT services, deepen the relevance of our digital services and enhance our efficiency and effectiveness in delivering those services to our clients. An inclusive work environment encourages different perspectives, and stc welcomes the wide range of experiences and viewpoints that both male and female employees bring to the table. In our inclusive workplace, all stc employees at every level are valued members of the stc family. Regardless of their gender, everyone is assured the right

of equitable, fair, and respectful genderneutral treatment. Empowering women is part of stc core values: this makes good business sense. We have a number of highly professional and skilled women leading functions at the middle and executive management level, but we aim to have highly talented women among our top-level management. In fact, our hiring curve of women has increased by 22.6% during 2020 from last year, and more than 18% of people in our leadership development program, and 33% from our specialized development program are women. stc is committed to upholding our zero-tolerance policy for any form of discrimination, ensuring a productive work environment where differences are respected, and where opportunities and equitable treatment are afforded to all. What can we expect from stc with regards to 5G in 2021? We are working to deploy the largest advanced 5G network in MENA. The next stage will witness an expansion of 5G in more than 71 cities across Saudi Arabia. These developments are the result of a continuous effort to enhance our network’s infrastructure and provide stc customers with connectivity diversity, coverage, and reach. The expansion of the FTTH fiber optic network has delivered the highest possible broadband speed and services to home and business users. stc has also been expanding its global Internet Gateway, progressively growing the capacity of the network. stc has recently signed global agreements with leading international content companies, such as: Google, Facebook, and Akamai. The ultimate objective for stc is to deliver the best and fastest possible service to stc customers.

www.stc.com

SAUDI

LEADERS’ INSIGHT REPORT

Prudent Ethical Investing Samer Abu Aker, CEO, SEDCO Capital, reveals how the firm has maintained its strong performance and shares his views on the markets. What does SEDCO Capital do? SEDCO Capital is a global Shariahcompliant and ethically-led multi-asset manager. We are headquartered in Jeddah, Saudi Arabia, with offices in Riyadh, London, and Luxembourg. We invest in Saudi Arabia, the GCC, the U.S., Europe, Latin America, and Asia and our total assets under management (AUM) currently exceed $5 billion. We provide our sophisticated clients with comprehensive investment solutions across diversified asset classes all over the world. Our clients consist of HNWIs, family offices, endowments, and financial institutions. Our primary asset classes are public equity, private equity, real estate, and fixed income. We have our full asset class suite exposure in the U.S., Europe, the U.K., and Asia and we also have interests of private equity in Latin America and public equity in Brazil. Our Luxembourg platform is one of the world’s largest of its kind in terms of Shariah-compliant funds and AUM and provides our investors with access to European opportunities. How has SEDCO Capital’s Prudent Ethical Investment approach helped it outperform the market? SEDCO Capital’s proprietary Prudent Ethical Investment (or PEI) approach is characterized by the sophisticated fusion of Shariah-compliant principles with Responsible Investment principles, particularly as they relate to environmental, social, and governance (ESG) adherence. Responsible Investment (RI) has been growing in significance for years

amongst regional and international investors. In terms of investor segments, financial institutions and endowments have been increasingly pivoting towards RI, and, demographically, millennials have also demonstrated an accelerated propensity in the same direction. Importantly, RI represents an enormous market size with current AUM at $89.7

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trillion. Notably, $29.5 trillion covers listed equities and fixed income and $30.7 trillion represents responsible investment strategies. Shariah-compliance requires the additional screening of balance sheet ratios such as leverage, cash and interest-bearing securities, and/ or the ratio of accounts receivable to

market cap or total assets (whichever is greater). Lower financial leverage and better cash conversion result in a bias towards quality and growth, thereby underscoring the significance of the “prudence” element in the PEI approach. We believe the tactful merging of both schools of thought has enabled us to outperform purely conventional investment approaches over many years on a risk-adjusted basis. For example, the SC Europe Equities Fund, which follows a PEI approach including negative screening, active ownership/proxy voting and ESG screening, outperformed on annual return basis for the last five years the Dow Jones Islamic Market Europe index by 1.21% and MSCI Europe Index by 7.18%. Similarly, the SC Global Sustainable Equity Fund outperformed on annual return basis for the last five years the Dow Jones Islamic Market World index by 0.64% and MSCI World Index by 4.74%.This means that our clients benefit from greater return with lower volatility when investing within a multiasset class framework, while adhering to the pillars of ethical investing. What factors do you look at when you consider exiting an investment? We invest in attractive real estate opportunities, which we term Core and Core Plus, in locations across Europe, the U.K., and the U.S. We look primarily at the office, logistics, education, and healthcare subsectors. The average IRR of our real estate portfolio is approximately 7%. We ensure that every decision taken over the course of a real estate investment is value-enhancing for potential buyers. The most successful exit strategy requires a well-tailored business plan prior to any investment decision. An exhaustive scrutiny of all possible scenarios helps allay concerns and mitigate potential obstacles that

may arise during the exit phase. We evaluate each potential investment with the end in mind. This means paying special attention to all aspects that a buyer will consider prior to making the purchase decision. These include the suitability of the asset location, asset quality, tenant credibility and financial position, and lease type. How has Saudi’s Vision 2030 impacted your investment decisions? Vision 2030 has created several benefits for global multi-asset managers. Firstly, it created a roadmap by highlighting certain economic growth sectors within the kingdom that are expected to flourish in the future and around which we can expect to see increased investment activity. As a result, this has provided greater visibility for long-term planning and increased confidence in our investment decision making. Another factor is the increased transparency in reporting macro statistics, which is always a good thing for global investors who could be keen to invest with us in-kingdom. Thirdly, we believe putting Saudi Arabia on the map will be a boon for these Shariahcompliant investments going forward, and therefore we feel very well positioned to create value for existing and potential clients. Which asset classes do you think will outperform in 2021, and why? Clearly the ongoing pandemic has created unexpected risks, which are inherently difficult to control. However, it has also opened several new opportunities. We believe public and private equity markets will benefit from a continued quest for growth, albeit at the cost of lower returns than in the past decade for as long as Covid-19related uncertainty remains. Thanks to the unprecedented support from policymakers all across the globe, the

current low interest rate environment is expected to persist for the next few years without posing any short-term threat to financial stability before inflation starts to raise its head. Against this backdrop, we believe that some exposure to higherincome asset classes, such as real estate (including global REITs) and both listed and private infrastructure is warranted in order to both provide superior income streams and a longer-term hedge against higher inflationary pressures. What effect will the G20 resolutions have on assets in Saudi and globally? It is difficult to comment on the impact of G20 resolutions without knowing the content of such resolutions. It is a privilege for all kingdom-based business organizations that Saudi Arabia is presiding over such a prestigious economic forum. The critical issues that will be discussed will be around ensuring the sustainability of our planet and the people who inhabit it through the powers of empowerment, innovation, and cooperation. SEDCO Capital has been recognized internationally for its commitment to responsible investment. As the first Saudi Arabian and Shariahcompliant asset manager to be a signatory of the UN-supported Principles for Responsible Investment (PRI), we are well positioned to be active participants in shaping the type of future that this year’s G20 meeting envisions. In 2020, SEDCO Capital was awarded the highest possible rating by the PRI in recognition of our approach to responsible investing and integrating ESG factors into the investment solutions we create for our clients.

www.sedcocapital.com

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A World-First Opportunity Jerry Inzerillo, CEO of the Diriyah Gate Development Authority, reveals how Saudi Arabia, with the presidency of the G20, is in a unique position to support, reignite and boost the region’s tourism industry, as discussed at the public and private sector tourism forum.

he global travel and tourism industry is in fightback mode, crafting plans to rebuild an industry that will be fitter, safer, and more sustainable for a new era of tourism. One that combines the strategic talents of both the private sector and government to protect jobs, provide more opportunities and inspire a wealth of unforgettable travel experiences. That blend of strategic creativity, confidence, collaboration, and agility was one of the key elements of a historic meeting in Saudi Arabia, the world’s first ever G20 meeting specifically dedicated to how partnerships between public and private sectors can transform tourism across the world.

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During it, bilateral agreements were signed between multiple nations to adopt new measures that will co-create recovery, reopen borders, and aim to save 100 million jobs throughout the world. The G20 is one of the most important means of global co-operation between nations, building shared solutions to common challenges. As part of Saudi Arabia’s elevation to the Presidency of the Group of Twenty (G20) last year, heads of government, finance ministers, central bankers, and other leaders from the world’s largest economies will gather in Riyadh in November—in person and virtually—for the annual summit. This is the first time in which the G20 has been hosted here and, as the only Gulf and Arab state in the organization, the kingdom represents the voice of the entire region. Its presidency presents a timely opportunity to showcase Vision 2030—driven by His Royal Highness, Crown Prince Mohammed Bin Salman of the Kingdom of Saudi Arabia—to a highpowered international audience.

Vision 2030 is a bold ambition to create a Saudi industry far beyond the economies of energy and fuel, helping to shape future global travel and tourism agendas. One element of that programme is DGDA’s redevelopment project, which is designed to create one of the world’s most inspiring cultural and historical meeting places. It had been earmarked to host multiple events during the G20 summit, including the cultural evening, which will now be held to a mostly online audience. Discussions around employment opportunities, measures to inspire entrepreneurialism, corporate structures to facilitate business innovation, training programmes, economic diversification, technology hubs, equality drives, socioeconomic transformation of disparate communities and sustainability issues will all highlight the pioneering spirit behind Vision 2030. The event also provides a timely opportunity to project and promote Riyadh’s international influence to the world in extraordinary and fast-changing times, at a moment when all nations are seeking ways to bounce back from the economic and social turmoil brought on by the COVID-19 pandemic. That was at the heart of the first ever G20 public and private sector tourism forum, where ministers convened with more than 45 CEOs from the private sector and members of the World Travel & Tourism Council (WTTC). They met to discuss how to kickstart the market, accelerate the post-pandemic recovery, protect, and save 100 million jobs worldwide, and inspire a new age of sustainable travel. In all, it’s estimated that the industry represents 10% of global GDP and, while the markets are resilient, they also need concerted leadership if they are to emerge from these unpredictable times with renewed vigour and confidence. Together, the leaders of some of the world’s largest and most important hotel chains, tourism operators and travel businesses compiled a 24-point plan

specifically formulated to inspire a global recovery, with the private and public sectors halving responsibility for the two dozen strategies. These include eliminating and reducing travel barriers, creating regional air corridors and an internationallyrecognised testing protocol at points of departure. In addition, broad agreement was reached for the pioneering Seamless Traveller Journey, which aims to use more technology to industry growth. This has been a strategic priority for WTTC as it seeks to rebuild confidence amongst international markets. All of these measures are designed to create a global hospitality framework to instil confidence in business, government and the wider public that travel is, once again, safe. Collaboration has been at the centre of the kingdom’s Chairmanship of the G20. Speaking with one voice, seeking agreement on realistic new protocols and strategies, and moving in unison are essential to combat the global economic downturn. Private business and enterprise have already initiated a raft of measures to boost consumer confidence in the travel and tourism industries. By securing agreements of governments, communicating those developments to a wider audience becomes easier. When stakeholders and business leaders collaborate in such a manner—pooling experience, insights, and talents—it is society that is most likely to benefit. Not just tourists, but those who work in multiple industries serving their needs, communities who benefit from visitors seeking new experiences and the vast network of businesses that employ millions across the globe. It’s also worth remembering that travel and tourism is one of the most diverse sectors in the world, employing people from all socioeconomic levels, regardless of gender or ethnicity, almost a third of whom are young and more than half women. Tourism has become one of the world’s most important economic

contributors, creating one in 10 jobs globally. We have a huge and privileged responsibility as tourism industry stakeholders to come together and collaborate during a time of such important need – for we are stronger as a united voice, and industry job recovery will be aided more quickly with an approach that is both consistent and united internationally. The extraordinarily ambitious Vision 2030 plan to transform the Middle East into one of the planet’s premier tourism destinations requires just such a collaborative approach. His Royal Highness, Crown Prince Mohammed Bin Salman’s plan is designed to stimulate economies within the Middle East and attract discerning tourists from across the world. When the project is completed, Saudi Arabia hopes to have reinvented what experiential tourism represents, attracting 100 million new tourists by 2030. The G20 itself functions as a global forum for the world’s 19 largest individual economies, plus the European Union, representing around 80% of the world’s GDP and two thirds of the global population. The collaborative dialogue and target-setting enable greater coordination between nations so that global economies and societies can benefit together. It’s not surprising that Saudi Arabia has been chosen as the venue for such an innovative public-private partnership meeting for the tourism industry. With the G20’s aim of not just inspiring commercial recovery for the 100 million jobs at stake, but also helping communities across the world who depend upon the industry, the kingdom is perfectly positioned.

www.dgda.gov.sa

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LEADERS’ INSIGHT REPORT

Supporting The Growth Of A Kingdom Dr Ibrahim Almojel, CEO of the Saudi Industrial Development Fund (SIDF), explains the purpose and growth journey of one of the kingdom’s most important funds. SIDF is one of the region’s oldest industrial development funds. What are its key goals and how have they developed over the years? Established in 1974 by the government with a capital of $133 million, SIDF has been supporting Saudi’s manufacturing industry for 46 years by providing medium and long-term financial loans, advisory solutions, and human capital development of the ecosystem. Today, as a financial enabler of industrial transformation, SIDF has expanded its bylaws to extend its support to a number of promising sectors, raising its capital to $28 billion in 2019. This allows the fund to provide new tailored packages of financial services and products that meet the needs of the private sector in the industry, mining, energy and logistics sectors under the National Industrial Development and Logistics Program (NIDLP). SIDF is the financial enabler of the NIDLP, which is one of the largest programs for Vision 2030, aiming to attract investments and transform the kingdom into a leading industrial powerhouse and a global logistics hub.

Other than financing, what other services does SIDF provide to investors in the kingdom? The primary service we offer is lending, however another key role is the development of human capital in Saudi, including employees, clients, or leaders in the public and private sector. We offer learning programs in collaboration with global strategic academic partners such as Chase Manhattan Bank, the Stanford Center for Professional Development, Fitch Learning, and the London Business School, and delivered by the SIDF Academy. As a result, SIDF has fed the industrial landscape with leaders either as alumni or entrepreneurs who contributed to the advancement of the industry of the country. We also provide advice from subject matter experts in the technical, marketing, and financial fields to clients and companies interested in participating in the kingdom’s ambitious economic transformation program.

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We work with our clients to enhance projects and ensure maximum economic development and client success. What makes Saudi attractive as an industrial hub globally? How is SIDF engaging with international companies to help them set up their manufacturing hubs in Saudi? Saudi Arabia holds exciting potential and opportunity for investors. A G20 economy with a young, highly educated population of more than 30 million people located at the heart of the Arab world, the kingdom has the geographical advantage of being a connector between Asia, Africa, and Europe. With major ports on each side of the country, the kingdom is building a highly interconnected ecosystem backed by a robust logistics infrastructure and bountiful natural resources. Saudi Arabia

is considered the largest economy in the Middle East and the largest market in the Gulf region. Working within a defined strategy, the government is offering a number of incentives such as technical, fiscal or administrative procedures to attract leading international companies in the industrial field. And as more entities learn of the kingdom’s open-door investment policy, SIDF has established engagement with international companies. For instance, SIDF has approved an $840 million loan to Chinese-owned Pan-Asia to develop a petrochemical facility in Jazan City for Primary and Downstream Industries (JCPDI). The launch of the NIDLP has seen SIDF’s capital increase from about $17.3 billion to $28 billion. What are some of the new initiatives that you have launched under this program, and how do they contribute to Saudi’s economy? In January 2019, the NIDLP published a comprehensive plan that identified potential growth, commitments and aims for 2030. To adapt to its role as a financial enabler of the program, SIDF has expanded to cover new sectors such as energy, mining, and logistics services.

SIDF also introduced new products beyond project financing, including a working capital financing program for investors in new businesses that covers incremental operational expenses for projects, as well as acquisition finance. The latter provides financial backing for a number of items, including the acquisition of specific technology and manufacturing methods, intellectual property, suppliers and clients, and competitors. To support the renewable energy sector, SIDF lends financial assistance and provides incentives to manufacturers of renewable energy components and to project developers in industrial, commercial, and agricultural sectors. In efforts to further support the SME sector, SIDF offers an SME scaleup program that provides financing for successful SMEs that have been in operation for at least two years in valueadded sectors, to further contribute to the economic growth of the kingdom. What steps are you taking to increase private sector participation in Saudi’s manufacturing industry? SIDF has continued to play a role as a supporter and enabler to the private sector within the priority sectors that we finance. Our success is defined

by the private sector’s success and in order to increase investments in the manufacturing industry we work handin-hand with the private sector to ensure we get a better understanding of the markets’ needs. Once we get that better understanding, it helps us to create and develop more tailored products and programs that address these particular gaps in the market today. What was the impact of COVID-19 on the manufacturing sector, and what role has SIDF played to support the private sector? In March 2020, the Saudi government announced an urgent financial stimulus package exceeding $32 billion to mitigate the economic effects of the COVID-19 outbreak. In line with that we have launched initiatives with a total value exceeding $1.2 billion aimed at supporting the private sector impacted by COVID-19. This includes the deferment and restructuring of installments for SMEs in 2020, in addition to large industrial companies that have been affected by COVID-19, with a total amount exceeding $960 million. We have also launched an initiative to finance operating expenses of SIDF’s SME clients, and raw material costs for all medical and pharmaceutical factories to continue supplying necessary medical products during the COVID-19 pandemic due to expected high demand with the total approval amount exceeding $260 million. SIDF also offers loans to finance fixed-asset costs to factories that produce products related to the prevention and treatment of COVID-19 to meet the anticipated local demand.

www.sidf.gov.sa

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LEADERSâ&#x20AC;&#x2122; INSIGHT REPORT

From Opportunities To Success Stories Naif Saleh Alrajhi, Chairman and CEO at Naif Alrajhi Investment, explains what makes the company unique for investors and how it has consistently grown over nearly 20 years.

s Saudi Arabia claims its position as a major global economic hub, there is growing interest among companies around the world to enter the Saudi market and explore its potential. Choosing the right partner is key to achieving success. While many are ready to act as a local partner, Naif Alrajhi Investment looks at the future, extends its interest, and invests today, seizing opportunities and making them a success. With a diverse portfolio covering 13 sectors, local expertise, and hands-on experience, Naif Alrajhi Investment has been successful in identifying and reaping the benefits of what tomorrow holds. The group has a diverse investment portfolio in six global markets with a unique edge in choosing the right opportunities. Whether in Saudi Arabia, the Gulf region, or other countries across the world, the companyâ&#x20AC;&#x2122;s reputation has grown significantly over the past two decades. It has achieved success during even the most difficult and challenging times, adopting tailormade business strategies, and making

leaps in the local market. Naif Alrajhi Investment has become a world of opportunities in and of itself. WHERE OPPORTUNITIES ABOUND A strong believer in business diversification, the company has built a competitive edge in the world of investment since its inception in 2002, developing long-lasting strategic collaborations and driving business partners towards success without any

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limitation. Regardless of size, industry, or investment, the group invests in opportunities. Headquartered in Riyadh and with a presence in Dubai and London, Naif Alrajhi Investment works with companies in more than 13 sectors through real estate development, capital markets, and mergers and acquisitions. All market sectors are thoroughly well-studied by a team of experts from different industries.

The group works and invests in many local and international companies, and successfully handles franchises. We care for the potential and the difference we can create for these companies in the medium-term. We seize opportunities, invest in them, and transform them into successful, sustainable, and profitable businesses. BUSINESS DIVERSIFICATION Naif Alrajhi Investment possesses a large portfolio of residential, commercial, and hospitality projects, in addition to multi-purpose projects in a number of countries including Saudi Arabia, the U.A.E., Morocco and the U.K. Lately, the group partnered with Accor, owners of renowned luxury hotel chains, and is soon launching the first standalone Fairmont Ramla Serviced Residences in Riyadhâ&#x20AC;&#x201D;a 35-story tower with a unique architectural design and distinctive services for residents. This landmark will bridge a gap in the market and become a luxury destination in the kingdom through its services, dining options, and bespoke amenities. Beyond that, the group also invests in sectors that complement and support related projects such as those in the engineering field, project management, contracting, decorations, furniture manufacturing, and interior design. In the food and beverage sector, Naif Alrajhi Investment brings in a large number of renowned restaurants under an umbrella of 13 brands, which

include chocolate and sweets, a chain of fast-food restaurants, bakeries, and ethnic restaurants with a modern twist. The company plans on doubling its investments in this industry in the coming years to vary the offerings from casual to high-end dining to suit all tastes and segments. In addition to that, the multidisciplinary investment company realizes the special importance of technology and IOT and invests in it, along with real estate development, mining, architecture, MEP, marketing, and other various sectors. Naif Alrajhi Investment is also active in capital markets. It manages its selfowned portfolios through a team that specializes in studying and analysing the status of local and international capital markets. The company invests in the leading sectors based on financial indicators such as growth and cash distributions. It also makes sure it balances its investments in different areas to distribute risks and prepare for any event of economic fluctuations, which are in line with the companyâ&#x20AC;&#x2122;s strategy. EMPOWERING CAPABILITIES OF THE FUTURE, TODAY Naif Alrajhi Investment has always sought prospects for profitable expansions, and its persistent efforts in this regard are ongoing. Throughout all the different challenges that are facing markets worldwide and the difficulties resulting from the coronavirus

pandemic, the group is committed to grow further while realizing the highest innovation and performance standards. Backed by a strong crisis management department, Naif Alrajhi Investment boasts promising forthcoming plans, aimed at finding opportunities in light of the prevailing economic challenges and developing proactive long-term strategies. An experienced investor is one who will be able to grab any available opportunity for the sake of their business. Naif Alrajhi Investment is the right partner to help you seize opportunities.

www.nalrajhi.com

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LEADERS’ INSIGHT REPORT

Time For Optimism Abdullah Ibrahim Alkhorayef, CEO of the Alkhorayef Commercial Company and the Alkhorayef Industrial Company shares his insights on Saudi’s economic markets and Vision 2030. How has Saudi’s Vision 2030 changed the direction of the Alkhorayef Group, and how are you supporting this vision? Vision 2030 is a very pure, clear direction for all companies, and our group and subsidiaries understand the necessity of aligning with it. When it comes to our product mix, we are very lucky because most of it would be ad hoc to whatever is in the vision. For example, our work in the marine leisure market aligns with the government’s tourism program, which is seeing a huge rise in demand. When we relate this to Vision 2030, our work in the sector is going to be adding value to the tourism sector and the culture, and it will contribute to increased quality of life for citizens and residents in Saudi Arabia. It is definitely a change of strategy and an alignment with the vision. What you would say have been the Alkhorayef Group’s biggest challenges this year? The common challenge that everybody had was not being able to do business and carry out meetings face-to-face, or to travel and connect to the world as we were used to. Based on the ambitious plans that we had in late 2019, we started 2020 with large inventories and production capacity, assuming that the economy would excel this year. However, lockdown created a lot of pressure in terms of the utilization of assets, production, and cashflow.

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We have been suffering more psychologically than physically, which had a negative impact on the supply chain. Cashflows were definitely one important element that we tried our best to manage, and I would say we did it very well. Also, sales in June were a matter of survival for everyone. We managed to get rid of most of our inventories at that time. We oversaw the negative months coming later on, and we did not have excess baggage in July and August. Although we faced these kinds of challenges, the results were quite good. Our new normal now is based on more efficiency and focus.

As to Saudi’s role, the new market legislations and incentives of the Ministry of Industries are supporting the whole industry and ecosystem in terms of exports programs. Today, I think we have the ability to increase the number of sales internationally through the programs that the government has implemented to help us sell regionally for the time being, and then globally. How are you using new technology to improve your services in agriculture and other divisions? We are very advanced in terms of technology. In the agriculture division

We are very advanced in terms of technology. In the agriculture division we have what we call an “I-Control Panel,” which is a smart device that we install within the pivot systems that we manufacture. Thanks to AI, the panel allows us to calculate a lot of data, which we collect later to use in agricultural production. How much of your business is international? And how do you see Saudi Arabia strengthening its presence on a global stage when it comes to international partnerships and contracts? The percentage of our international to local business varies. For example, one of our irrigation systems factories has been selling more than 95% of its production internationally. We have also started selling our GULFPOWER Diesel Power Generators globally. In our oil and agriculture businesses, we have been international for quite some time. Due to the pandemic, countries have now invested more in their own agricultural businesses, and this has grown our international sales.

we have what we call an “I-Control Panel,” which is a smart device that we install within the pivot systems that we manufacture. Thanks to AI, the panel allows us to calculate a lot of data, which we collect later to use in agricultural production. We also have very typical remote-control operations, which we use to control the water sprinkler pressure systems remotely. Within the group itself, we have now a project that we launched for robotics in manufacturing facilities, which include robotic welding and more advanced robotic systems. In our marine and land products division, we have an e-commerce platform where you can buy our products through the Alkhorayef electronic commercial shop.

We are also developing an e-commerce platform, so our dealers and distributors will no longer need to contact us. It is going to be a very simple transaction between the end user and our system. We are very serious about our digitalization and information systems. What are your predictions for your industry over the next year and what concerns do you have? The Saudi Telecommunication Foundation is very well advanced in terms of infrastructure. During the pandemic it succeeded in keeping systems and communication going without interruption. As to the future, first, the pandemic is still here, and we cannot neglect this fact. Second, the oil prices are still low. And finally, the U.S. political system will have a global impact in the last quarter. So, we cannot raise our hopes, but we should not be pessimistic. It is just a matter of controlling the last quarter of this year in a smart way. We are finalizing our budgets and we have different scenarios. The majority of these are more optimistic because we know that people tend to spend more after a crisis. The demand is there, we still have projects ongoing, and the economy is providing very good, secured payments. The cash and the ability to invest are also there. All of these are good elements that help us to be optimistic.

www.alkhorayefcommercial.com.sa www.alkhorayefshop.com

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LEADERSâ&#x20AC;&#x2122; INSIGHT REPORT

Investing Transformed Abdulrahman AlQahtani, CEO of Daal Ventures, talks about how 2020 has changed his perspective and how 2021 is shaping future business. What are the key challenges facing the IT sector in Saudi Arabia as we approach 2021? Saudi Arabia has been working for the past couple of years on the eGovernment project, which would enhance the life of Saudi citizens and residents by accelerating and automating most of the processes. During COVID-19 we have seen the result of that hard work, as most government-related inquiries have been able to operate smoothly even during the lockdown. This means that Saudi Arabia could face challenges regarding cybersecurity, especially considering the ever growing cyberattacks on governmental and private entities. The growing size and sophistication of these attacks make the skills gap in the IT sector a real challenge. Globally, the IT skills gap has increased by 155% in three years, which indicates that the public and private sectors need to work hand-in-hand to provide sufficient training and real job opportunities to attract the best and brightest minds. How is Daal Ventures different to other VC firms? What new perspectives and innovations are you bringing to clients? DAAL Ventures uniquely positioned itself as an international investor that mainly focuses on investing in startups that are operating in or targeting emerging markets. We believe that in the next 10 years, consumer spending in emerging countries will far exceed consumer

spending in the developed world. Add to that continuous GDP growth, more people getting out of poverty, and a high working-age population, and we believe that the future is in the hands of emerging countries.

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With all the hard work that we have put into establishing our footprint in these countries, we can proudly say that DAAL Ventures might be the number one VC firm in receiving the best international deal-flow of all VC

firms in the Middle East. We have been working with relevant entities in the public and private sectors to make Saudi Arabia the startup hub for emerging markets, and the early responses we are getting indicate that we might see this happen faster than we expected. Finally, DAAL is planning to introduce different types of products in the hope it will be a help for startups and these who wish to invest in startups.

proven the most resilient during the pandemic and will offer the best returns for investors for the foreseeable future. The G20 summit this year has the theme, “Realizing Opportunities of the 21st Century for All.” What is your assessment of Saudi’s progress in transforming the economy and creating new opportunities?

DAAL Ventures uniquely positioned itself as an international investor that mainly focuses on investing in startups that are operating in or targeting emerging markets. We believe that in the next 10 years, consumer spending in emerging countries will far exceed consumer spending in the developed world. 2020 has been a tough year. What have you learned from this unprecedented business environment? Indeed, it was a tough year, and it made us think twice about how we do business, how we could be more efficient, and where we go from here. We started by looking into remote working in a more serious way. While we do have remote workers, we decided to rethink the way we operate and communicate. We enhanced our methods of communication and the way we follow up on tasks, and we built a virtual working environment. COVID-19 has had a dramatic impact on SMEs in Saudi and the world over. From a VC perspective, what subsectors of IT have remained the most resilient and offer the best returns for investors? I think the logistics, last mile delivery, EdTech, and Fintech sectors have

Since the announcement of Saudi’s Vision 2030, we have seen rapid and continuous growth in the economy, especially considering all the challenges that the Saudi economy was facing, such as the drop in oil prices. I think the decision to reduce reliance on the oil and gas industry was a great decision by the government for the youth of Saudi Arabia. It created more career life options and more opportunities for everyone. An integral part of Saudi Arabia’s transformation process has been to open up employment opportunities to women. What has been your experience of this from a VC perspective? We are looking at many great SMEs that are being led by women. We are also seeing VCs in the region focus on supporting these startups as well. Women in business are essential to reshaping the economy and the future of our country.

What can business leaders in Saudi Arabia do to ensure the best young minds remain in the kingdom? We are working hard to build, attract, and maintain the entrepreneurial spirt of the youth of Saudi Arabia. Sharikhub, one of our subsidiaries, was built to support these great young minds by providing them with all kinds of needed services, starting from office space, accounting, and HR services. Sharik-hub also helps them to find investors by supporting them with marketing, creating relevant documents and financial projections, as well as advisory and mentorship programs. What are your plans and objectives for 2021? What has you feeling optimistic? I am feeling very optimistic that the coronavirus pandemic will end in 2021, but the economic aftermath will exist for the next couple of years worldwide. That said, I remain very optimistic about the future because the protective measures and lockdown enforced by the government caused a huge shift in consumer behavior. Things like online purchasing, online payment, conference calls, and online education and degrees had been adopted by Saudis for many years, but were not widespread or recommended in some cases, which made some analysts believe it would take years for these things to become the new norm. The lockdown expedited the transformation of these norms and proved that technology will play an essential role in everyone’s lives. These shifts are good news for someone who operates in the venture capital space.

www.daal.ventures

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Powering A Bright Future Eng. Saif S. AlQahtani, President and CEO of the King Salman Energy Park (SPARK), discusses energy supply chain investments in Saudi Arabia. What are the key challenges facing the energy sector in Saudi Arabia as we approach 2021? We face a two-fold responsibility of driving domestic economic diversification by localizing goods and services, as well as being a cornerstone of global energy supply. To meet this end, enabling the right environment to further attract foreign investors has become our paramount goal. SPARK is a fully integrated energy ecosystem that serves as a gateway for investors to the world’s energy sector. Our offerings are designed to be a one-stop-shop solution to support ease of doing business beyond regional and global borders, bolstered by full port facilities and rail links connecting us logistically to regional and world markets.

from excellent rail and road connections and a dry port, which shorten the lead-time for importing and exporting goods. Our tenants will be part of a vibrant ecosystem that supports talent development, innovation, and small enterprise growth.

It has been forecasted that FDI in SPARK will exceed $2 billion in the next two years. What role does SPARK have in the development of the energy sector in Saudi and why should investors look here? SPARK is strategically located at the heart of Saudi Arabia’s energy production, adjacent to the world’s largest energy and petrochemicals operators. We have invested heavily in laying a strong energy-centric foundation for investors to save time and money, reducing the risk in doing business. From leveling land to building best-in-class power, water, gas and ICT infrastructure, right up to the boundaries of a tenant’s plot, we have eliminated risks imposed upon investors’ capital by having to account and provide for the development of the utilities and infrastructure required to commence operations. SPARK tenants will benefit

Having an affordable, reliable and accessible energy supply has been highlighted as a key goal for the global energy sector in the run-up to the G20 summit. In your opinion what are the actions that G20 governments must take in order to achieve this ambitious objective? Saudi Arabia is proposing a circular carbon economy as an innovative framework for sustainable development. We will identify sustainable technologies complementary to the hydrocarbon industry, and the development of these technologies will be encouraged. This approach supports our drive to achieve a reduction in global carbon emissions and simultaneously provide an affordable, reliable, and accessible investment environment that is in line with the global community’s commitment to ensure the stability of energy supply.

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With the global oil market still in recovery, international governments and agencies have suggested extending the reduction of oil production to more than two years. What impact is COVID-19 having on SPARK’s development plans and how do you see the future unfolding? The short-term impact has not been substantial. Like others, we assessed our supply chain, keeping certain construction projects in focus, and adapted to new working methods to ensure we are on track to deliver 100% of the first phase of the city by 2021. We secured several anchor tenants and investors towards the end of 2019 and early 2020, and the construction timeline of those facilities is also on track. In the long run, we expect energy markets to fully recover, meaning our core offerings and business plans remain relevant to the market. What are your long-term goals for SPARK? We are set to play a major role in the diversification of Saudi Arabia’s economy and be a catalyst of growth for local, regional, and global organizations. By localizing the energy value chain, we will continue to attract FDI into the country and contribute to GDP growth, creating diverse employment opportunities. We continue to build sustainably, with SPARK being the first industrial city in the world to gain LEED Silver certification and earmark our progress in developing an environmentally friendly, innovative, and collaborative industrial ecosystem.

www.spark-ksa.com

SAUDI

LEADERS’ INSIGHT REPORT

Evolving With Consumers Faisal Abdullah Al Jedaie, CEO of Arabian Centres, explains how they are differentiating and why he’s optimistic for 2021.

How is Saudi Arabia’s transformation impacting the retail and lifestyle sectors and what are you doing to capitalize on those major cultural and social shifts? Saudi is transforming socially and economically as Vision 2030 unlocks remarkable potential and opportunities. The re-introduction of cinemas played a paramount role in increasing outof-home entertainment spending and enhancing the quality of life. The country has seen a dramatic transformation in the retail sector as the consumer’s landscape is diversifying alongside the growth of the Saudi workforce and increasing disposable incomes. Therefore, Arabian Centres is undergoing a massive refurbishment from a traditional mall to a lifestyle destination to meet the everincreasing demand. How are you differentiating the brands you own and the experiences shoppers have at your malls? Arabian Centres recognizes that malls are increasingly becoming an integrated lifestyle destination. So, the company continually reviews and adjusts the tenant mix with changing consumer preference, based on their target demographic within their respective catchment area. The company equally looks for opportunities to introduce

more diverse retail units containing bridge brands and high-end luxury brands. Likewise, the upcoming developments will embrace iconic and modern design, outdoor and indoor offerings, with more focus on F&B and entertainment, along with lifestyle and supporting elements. COVID-19 has had a disruptive effect on the global retail sector in terms of shopping habits, how can brick and mortar stores compete as shoppers’ behaviors evolve? COVID-19 has collectively stunned the world and its implication has had an adverse effect on retail sectors. However, there are ways in which retailers can thrive to drive consumers back while adhering to social distancing measures. Clean and safe shopping that supplies a seamless and meaningful consumer experience is now more important than ever. ACC acknowledges the effects of this pandemic and therefore the company decided to implement health and safety regulations that ensure a safe shopping environment. What’s the secret to building loyalty among shoppers? Customers come in all personalities and with a diverse set of goals. Nowadays, they are looking for an unmatched experience that exceeds their expectations. Ideally, the golden rule is that we must acknowledge the customers as per their needs and wants through an exceptional customer experience. The key lies in understanding the volume of data available and

The thoughts expressed in this advertorial are those of the client.

using those data to boost customer loyalty, which will make the customer emotionally connected and encourage repeat visits. ACC is currently developing an integrated smart approach to enhance the overall customer’s lifetime value and understand further their shopping behavior to maximize their shopping experience. Arabian Centres recently announced the soft opening of the Nakheel Mall Extension (Phase One) in Riyadh, how optimistic are you for 2021? The retail sector in Saudi Arabia is in the recovery stage post lockdown but will continue to benefit in the long run. This will be further backed up by Vision 2030, with key developments set to position the country as a noteworthy destination and an attractive place to do business. The soft opening of Al Nakheel Extension has further enhanced the retail offerings of the existing Al Nakheel Mall through the introduction of new offerings to meet the overall demand. We are still optimistic for 2021, as our strategy is centered around cementing our leadership and boosting our “integrated lifestyle” offerings while serving our customer and partners in a way that ensures a positive impact.

www.arabiancentres.com

CMY

G20 Saudi Leadership

SAUDI

LEADERS’ INSIGHT REPORT

Going The Distance Fady Nassif, CEO of GoBus Egypt, reveals his plans for the brand and how it has managed to grow and evolve in a challenging year.

Having been in the market for over 22 years, GoBus is a well-known brand today. How do you see it as your business and family legacy? It certainly brings about a sense of responsibility to nurture and grow the business, because it’s not just a business, it’s a cherished part of the family. With the huge impact of the pandemic this year, how have you coped? Every industry took a hit. Definitely, we felt the pinch. We set a short and long-term plan along with a crisis management plan and started to execute them. The crisis didn’t pose a block, but was more of an accelerator to develop in some ways; stopping is not an option when people rely on your service. I believe the biggest benefit of this year has been realizing the power of technology on how businesses perform nowadays. How does technology fit into the transport industry and how has it affected your operations? Going digital is an ongoing project at GoBus. We have had a growing digital presence for the past six years with our website, mobile apps, strong social media presence, providing more accessibility using technological solutions for online booking. Now booking a ticket is no longer a trip, you can book with a click in two minutes.

Can you tell us more about the cooperation between Saudi Arabia’s Saptco Company and GoBus? We have been cooperating with one of the biggest transportation companies in Saudi Arabia and in the Middle East, SAPTCO, for more than two years. Our cooperation is transporting people from Saudi Arabia to Egypt (round trip), from Hurghada or Safaga port, taking the Ferry to Duba port in Saudi Arabia, and Duba port to the city. How would you describe the competition in this industry? We’re seeing quite a few new players in the field, it is always great to have competitors, and that reflects the diversity in demand; of course, it poses a challenge, but one that can only lead to success; the key is to define how to compete. What are your plans for the brand? Our vision is all about continuity, using our mission statement as a compass to guide every decision and action. We operate transport lines that cover Egypt, with 46 offices and stations, ranging from large 50-seater transport buses, to the 14-seater buses for the GoMini service, and private limousines. And using this expansive network we run the fastest shipping service with GoExpress. Also, there are upcoming deals and international protocols with Sudan and with Jordan.

The thoughts expressed in this advertorial are those of the client.

Can you tell us about your customers and how you keep your level of service standards? We serve about three million customers every year. We have 300 trips per day covering about 150 million kilometers. We have seven categories of bus classes to serve different communities from the economy to the elite. We have a new fleet every year and its lifetime is three years maximum to ensure clients’ safety. We evaluate and analyze each client’s request and complaint and solve it to improve our process efficiency and effectiveness.

CMY

What new services are you working on currently? We’re expanding our services, encompassing private travel through luxurious cars newly introduced under GoLimo. This limousine service (intercity and city-to-city) has the highest standards and provides the best and latest models of vehicles, with several categories led by professional chauffeurs.

g www.go-bus.com

SAUDI ARABIA IN FOCUS

SAUDI ARABIA’S

The companies on our annual list of the Top 100 Companies In The Middle East are the largest and most profitable companies listed on the region’s stock exchanges. In 2020, Saudi Arabia dominated the list with 33 companies. Market values given here are as of October 27 2020.

CEO: Yousef Abdullah Al-Benyan Sales: $37.3 B Profits: $2.3 B Assets: $82.8 B Market Value: $75.7 B Sector: Industrials SABIC is among the world’s largest petrochemicals manufacturers. It was established in 1976 by Royal Decree. Today, the company has operations in over 50 countries, with a global workforce of over 33,000. SABIC’s global expansion began in 2002 with the acquisition of DSM’s petrochemical business in Europe, with manufacturing facilities in the Netherlands, Germany, and the U.K. SABIC acquired Huntsman Petrochemicals (UK) in 2006 and renamed it SABIC UK Petrochemicals. In 2007, SABIC acquired GE Plastics. Yousef Abdullah Al-Benyan has been vice-chairman and CEO of SABIC since 2015. Before that he was the CFO of the company.

3 National Commercial Bank CEO: Faisal Omar Alsaggaf

1 Saudi Aramco

Sales: $6.8 B Profits: $3.1 B Assets: $135.3 B Market Value: $32.3 B

CEO: Amin H. Nasser

Sector: Banks & financial services

Sales: $329.8 B Profits: $88.2 B Assets: $398.4 B Market Value: $1.8 T Sector: Energy Saudi Arabian Oil Co. Aramco is the world’s most profitable company as well as the most valuable company in the world. Over 98% of the company is owned by the Saudi government and it is the main source of revenue to the Saudi Arabian government. The company engages in the exploration, production, transportation, and sale of crude oil, natural gas, and chemicals. The company is focused on innovation—it had 230 patents granted by the U.S. Patent and Trademark Office in 2017. Amin H. Nasser is the president and CEO of Saudi Aramco and has been with the company for 30 years. F O R B E S M I D D L E E A S T.CO M

Also known as “Al Bank AlAhli,” NCB has transformed to online, with 98% of all transactions now digital. It is the most profitable bank in Saudi with the largest revenues and is the second largest in terms of market value. NCB Capital was the main investment bank facilitating the Saudi Aramco IPO. On October 11, 2020, NCB and Samba financial group signed a legally binding merger agreement, which will create one of the biggest banks in the region. Faisal Omar A Alsaggaf has been the CEO since 2018. Alsaggaf is a Harvard university graduate. He was previously head of strategy at NCB and has over 30 years of experience in banking. NOVEMBER 2020

Saudi Aramco; SABIC; NCB

THE LIST

TOP LISTED COMPANIES

2 SABIC

SAUDI ARABIA IN FOCUS

CEO: Waleed Abdullah Ali Al-Mogbel Sales: $5.3 B Profits: $2.7 B Assets: $92.8 B Market Value: $44.8 B Sector: Banks & financial services Al Rajhi Bank has the highest market value and the largest customer base of all banks in Saudi Arabia. It was originally established in 1957 as an exchange house. It converted to a bank under the name “Al Rajhi Banking Corporation” in 1987 and changed its name to Al Rajhi Bank in 2006. Waleed Abdullah Almogbel became the CEO of Al Rajhi bank in 2020. He has a PhD in accounting and auditing and 22 years of experience in the sector.

5 Saudi Telecom

6 Saudi Electricity CEO: Fahad bin Hussein Al-Sudairi Sales: $17.3 B Profits: $370 M Assets: $128 B Market Value: $23.2 B Sector: Utilities Saudi Electricity generates and distributes electricity, either itself or through its subsidiaries, to the Kingdom of Saudi Arabia. It was formed in 1999, when the Saudi government merged all electricity distribution companies in the country to form one entity, and a monopoly. It has had a 4% growth per year in its subscriber base, which has partially offset consumption declines. Fahad bin Hussein Al-Sudairi has been CEO since 2018, before which he was CFO of the company.

CEO: Nasser Sulaiman Al Nasser Sales: $14.5 B Profits: $2.9 B Assets: $31.5 B Market Value: $55.9 B Sector: Telecommunications Founded in 1998, stc is the top-ranked telecom company in the Middle East and the biggest telecom operator in the kingdom in terms of subscribers. Earlier this year, stc played a key role in the success of the first virtual G20 summit. It also sent over 2.5 billion messages in 10 languages to millions of citizens and residents to help prevent the spread of COVID-19. It doubled its operational capacity in 22 health centers as part of a $26.6 million community initiative that benefited around five million patients. Nasser S AlNasser has been the group CEO of stc since 2018.

7 Riyad Bank CEO: Tareq Al Sadhan Sales: $3.8 B Profits: $1.5 B Assets: $70.9 B Market Value: $15.1 B Sector: Banks & financial services

Al Rajhi Bank; STC; Saudi Electricity Company; Riyad Bank

Riyad Bank provides a full range of banking services for companies and individuals, across a network of 341 branches in Saudi Arabia, a branch in the U.K, an agency in the U.S., and a representative office in Singapore. Last year, it launched a Forex contracts trading service, making it the first financial company licensed in Saudi to provide this service. Tareq Al Sadhan joined Riyad Bank in 2018 and was made president and CEO in 2019. He is also member of the 2020 World Economic Forum’s Stewardship Board. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

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4 Al Rajhi Bank

SAUDI ARABIA IN FOCUS

10 Banque Saudi Fransi CEO: Rayan Mohammed Fayez

8 Samba Financial Group CEO: Rania Mahmoud Nashar

Sector: Banks & financial services Banque Saudi Fransi has three regional offices in Jeddah, Al-Riyadh, and Al-Khobar. Saudi Arabian investor Al Waleed Bin Talal’s Kingdom Holding is the biggest shareholder in the company. In January 2020, Banque Saudi Fransi signed an agreement with Baud Telecom Co. to launch an electronic signature service to become the first bank to use e-signatures in the kingdom. Rayan Fayez has been CEO of the bank since February 2018.

Sector: Banks & financial services Samba was founded as Citibank in Saudi Arabia in 1955. In 1980, Citibank became “Saudi American Bank” following a royal decree. In 2004 the bank became locally run. Samba was the first bank in Saudi to offer ATMs and private banking. On the investment side it runs Saudi’s first Real Estate Fund and its first China Fund. Samba and NCB agreed to merge on October 11, 2020, the banks expect the merger to complete during the first half of 2021. Rania Nashar became the first female CEO of a commercial bank in Saudi when she was made CEO of Samba Financial Group in 2017.

11 Arab National Bank CEO: Robert Eid Sales: $2.5 B Profits: $806 M Assets: $48.9 B Market Value: $8.1 B

9 Saudi British Bank CEO: David Dew Sales: $2.9 B Profits: $750 M Assets: $70.8 B Market Value: $13.9 B Sector: Banks & financial services SABB was established in 1978 by overtaking the activities and services of the British Bank of the Middle East in Saudi Arabia. In June 2019, SABB completed a merger with Alawwal Bank, one of oldest banks in the region with a 90-year history. David Dew was appointed MD of SABB in 2010. He has been a member of the SABB Board since 2009. He is also a board member for HSBC Saudi Arabia Limited and HSBC Bank Middle East. F O R B E S M I D D L E E A S T.CO M

Sector: Banks & financial services ANB was established in 1979. ANB Group offers commercial and investment banking services, in addition to specialized services in heavy equipment leasing and home finance. It has more than two million customers, and 176 branches. It also has an investment banking division called ANB invest, and ANB insurance. Robert Eid has been the CEO of Arab National Bank since 2005. He has a doctorate in money and banking from the Sorbonne University in Paris, and a master’s degree in economics from the American University of Beirut. Eid resigned in September 2020, and is due to leave by February 2021. NOVEMBER 2020

Samba Financial Group; David Dew Image from Source; Banque Saudi Fransi; ANB

THE LIST

Sales: $2.8 B Profits: $1.1 B Assets: $68.2 B Market Value: $15.4 B

Sales: $2.5 B Profits: $831 M Assets: $47.5 B Market Value: $10.3 B

SAUDI ARABIA IN FOCUS

14 Savola Group

CEO: Abdulmohsen Abdulaziz Al-Fares

CEO: Anees Ahmed Moumina

Sales: $1.9 B Profits: $676 M Assets: $35.2 B Market Value: $8.6 B

Sales: $5.9 B Profits: $175 M Assets: $7.1 B Market Value: $7 B

Sector: Banks & financial services

Sector: Food & Beverages

Alinma Bank is the eighth largest bank in Saudi Arabia in terms of assets. Saudi’s Public Investment fund owns 10% and is the largest shareholder in the company. In 2019, Alinma Bank reported an 11% decrease in profit after tax (zakat) after restating its net profit for 2018. It had to add $151 million to its 2018 post-tax income as a result of a settlement agreement between the bank and the General Authority for (Tax) Zakat and Income. The bank’s other operating income rose 16% over the last year. Abdulmohsen Abdulaziz Al-Fares has been the CEO of Alinma bank since 2006. Before this he was MD of the financial services division of the Abdul Lateef Jameel Group.

Savola is a holding group in the food and retail sector across MENA and Turkey. Its investments in edible oil and sugar are among its highest revenue-generating products. It also owns 34% of dairy company Almarai. Panda Retail has 205 stores in more than 42 cities throughout Saudi Arabia, as well as a presence in Egypt. With a 49% stake, Savola Group is also the largest shareholder in Herfy Food Services Company, which has 394 outlets. Anees Moumina has been the Group CEO of Savola since 2018. Before joining the company, he was CEO of SEDCO Group Holding, a large family-owned private Saudi company.

13 Almarai CEO: Majed Nofal Sales: $3.8 B Profits: $480 M Assets: $8.8 B Market Value: $14.6 B

Alinma Bank; Almarai; The Savola Group

Sector: Food & Beverages Almarai is the world’s largest verticallyintegrated dairy company, and the region’s largest food and beverage manufacturing and distribution company. Headquartered in Saudi Arabia, Almarai was ranked by Forbes among the world’s best-regarded companies in 2019. Almarai has five divisions: dairy, bakery, juice, infant nutrition, and poultry. The majority of the company’s revenues come from the dairy division. Majed Mazen Nofal became CEO from January 2020, before which he was Deputy CEO. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

75 THE LIST

12 Alinma Bank

SAUDI ARABIA IN FOCUS

15 Bank Albilad CEO: Abdulaziz Mohammed Alonaizan Sales: $1.2 B Profits: $332 M Assets: $23 B Market Value: $4.8 B Sector: Banks & financial services Riyadh-based Bank Albilad was incepted in 2004, providing all Islamic Shariah-compliant banking services under four business segments: retail banking, corporate banking, treasury, and investment banking and brokerage. The bank’s remittance arm, Enjaz, has one of the largest remittance networks in the kingdom with 180 centers. Bank Albilad’s total assets rose by 16.9% to $23 billion in 2019. Abdulaziz Mohammed Alonaizan is currently the CEO of Bank Albilad and has previously held leadership roles at Alinma Bank and Arab National Bank in Riyadh.

THE LIST

16 Bank Aljazira CEO: Naif Abdulkareem Sales: $1.2 B Profits: $264 M Assets: $23.1 B Market Value: $3 B Sector: Banks & financial services Headquartered in Jeddah, Bank Aljazira (BAJ) is a Shariah-compliant financial institution in Saudi Arabia. It began operations in 1976 when it took over the National Bank of Pakistan’s branches in the Kingdom. Listed on Tadawul, BAJ secured approval from the Capital Market Authority in 2018 to increase its capital from $1.4 billion to $2.2 billion. One of its notable CSR efforts has been the launch of its “Khair Aljazira Le Ahl Aljazira” program, which provided $26.6 million funding in support of the bank’s social responsibility towards the community. BAJ received the approval of the Saudi Arabian Monetary Authority to appoint Naif Al Abdulkareem as CEO from November 1 2020, according to the bank in a bourse statement.

17 Saudi Industrial Investment Group CEO: Sulaiman Mohammed Almandeel Sales: $2 B Profits: $343 M Assets: $5.9 B Market Value: $2.6 B Sector: Petrochemicals SIIG was founded in 1991 as a joint-stock company. It has three subsidiaries: National Petrochemical Company (Petrochem), Jubail Chevron Phillips, and Saudi Chevron Phillips. SIIG aims to reinforce its current plant to produce hydro-carbonic and aromatic products by extending investment in the petrochemical industries. Sulaiman Mohammed Almandeel has been the Managing Director of SIIG since 1995, he will serve in this role till the end of the year.

18 Bahri CEO: Abdullah Al-Dubaikhi Sales: $1.7 B Profits: $172 M Assets: $5.5 B Market Value: $4.3 B Sector: Logistics

F O R B E S M I D D L E E A S T.CO M

Bank Albilad; Bahri

Formed in 1978, Bahri is one of the biggest shipping conglomerates in the world, owning a fleet of 92 specialized vessels that transport crude oil, chemical products, general and project cargo, and dry bulk goods. A publiclylisted company on Tadawul, Bahri’s prominent shareholders are Saudi’s Public Investment Fund and the Saudi Aramco Development Company, who own 22% and 20% of Bahri respectively. The company generated $555 million in Q1 2020, up by 22% compared to the same period in 2019. Before his appointment as Bahri’s CEO in 2018, Abdullah Ali Al-Dubaikhi was the CEO of Saudi Agricultural and Livestock Investment Co. NOVEMBER 2020

SAUDI ARABIA IN FOCUS

19 Ma’aden

21 Mobily

CEO: Mosaed Al Ohali

CEO: Salman Bin Abdulaziz Al Badran

Sector: Industrials In 1997, Saudi Arabian Mining Co. (Ma’aden) pioneered the mining industry in Saudi Arabia. It is now the largest mining company in the Middle East. Ma’aden generated revenue of $4.7 billion in 2019, a 25% increase compared to the previous year. In April, Ma’aden appointed Mosaed Bin Suleiman Al Ohali as its new CEO. He previously served a three-decade stint at SABIC.

Sales: $3.6 B Profits: $8.3 M Assets: $10.5 B Market Value: $6 B Sector: Telecommunications

THE LIST

Sales: $4.7 B Profits: $-407 M Assets: $26 B Market Value: $13 B

20 Petro Rabigh CEO: Nasser Al Mahasher Sales: $9.1 B Profits: $-145 M Assets: $19.7 B Market Value: $3.2 B Sector: Petrochemicals Founded in 2005, Petro Rabigh is the largest single-phase integrated refining and petrochemical complex in the world. It was established as a joint venture between Saudi Aramco and Tokyo-based Sumitomo Chemical. The company held its Initial Public Offering on Saudi’s stock exchange in 2008, which saw the participation of some 4.5 million Saudis, covering the share value fivefold. Saudi Aramco and Sumitomo Chemical each own 37.5%, while public shareholding accounts for 25%. Before becoming the President and CEO in 2016, Nasser Al-Mahasher held the same position at Seoul’s petroleum and refinery company, S-Oil from 2012.

Saudi’s Etihad Etisalat (Mobily) was established in 2004 and launched commercially in May 2005. In its first 90 days of operation, Mobily acquired over a million subscribers. Having been listed on the Saudi Arabian stock exchange since 2004, the company’s major shareholders are Etisalat Emirates Group and the General Organization for Social Insurance, with 27.9% and 6.9% of shares respectively. Mobily’s Q1 2020 revenues were $958 million—a 12.5% year-overyear growth. Salman Bin Abdulaziz Al Badran became CEO in February 2019. He was formerly CEO of the Kuwait Telecommunications Company.

22 Jarir Marketing CEO: Abdulkarim Bin Abdulrahman Al-Agil Sales: $2.2 B Profits: $263 M Assets: $1.1 B Market Value: $5.8 B Sector: Retail Ma'aden; Petro Rabigh; Mobily

Jarir, a market leader for consumer IT products, electronics, office supplies and books, was founded over 40 years ago in Riyadh. Jarir is a retailer and wholesaler of its products in Saudi Arabia and other GCC countries. In 2003, the Jarir was listed on the Saudi Stock Exchange and became a Saudi joint stock company. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

SAUDI ARABIA IN FOCUS

23 Dr. Sulaiman Al Habib Medical Services Group CEO: Nasser Mohammed Abdulaziz Al Haqbani Sales: $1.3 B Profits: $223 M Assets: $2.3 B Market Value: $9.2 B Sector: Healthcare Established in 1995, the Dr. Sulaiman Al Habib Medical Services Group provides healthcare services through seven healthcare facilities in Saudi Arabia and Dubai, with a total capacity of 1,913 beds and 1,371 clinics as of end-2019. It also provides management and operation services to third parties, operating and managing the University Medical Center at King Abdullah Medical City in Bahrain. CEO Al Haqbani is also a board member of several companies including the First Riyadh Health Cluster, the Saudi Patient Safety Center, and Saudi Serco Services Company.

Dr. Sulaiman Al Habib

25 Saudi Investment Bank CEO: Faisal Abdullah Al-Omran Sales: $1.2 B Profits: $64 M Assets: $26.9 B Market Value: $3.3 B Sector: Banks & financial services SAIB provides both Shariah compliant and traditional products in Saudi Arabia. The bank currently has 52 branches and 1,481 employees. 85% of customers’ transactions are currently being conducted online and through mobile banking. CEO Faisal Al-Omran is also a board member of Amlak International for real estate financing. Under his leadership, the bank’s investment portfolio increased by 6.5% in 2019 to hit nearly $7 billion compared to $6.5 billion as of 2018 end.

24 Bupa Arabia for Cooperative Insurance CEO: Tal Nazer Sales: $2.6 B Profits: $158 M Assets: $2.7 B Market Value: $3.9 B Sector: Insurance Leading British health insurer, Bupa, established its Saudi presence in 1997 as a joint venture between the British United Provident Association Limited and the Saudi Nazer Group. The company went public in 2008—it was oversubscribed by more than 900%, making it one of the most successful IPOs for an insurance company in Saudi Arabia. In 2019, Bupa Arabia’s total comprehensive income jumped by 61.5% to reach $174.2 million. Tal Hisham Nazer has been a board member and CEO of Bupa Arabia since 2008. He holds an MBA from The Wharton School, Pennsylvania, U.S. in Finance and Buyouts. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Dr. Sulaiman Al Habib Medical Services Group; Bupa Arabia; The Saudi Investment Bank

THE LIST

SAUDI ARABIA IN FOCUS

26 Kingdom Holding CEO: Talal Ibrahim Almaiman Sales: $595 M Profits: $121 M Assets: $12.9 B Market Value: $7.4 B Sector: Investments 79 THE LIST

Established in 1995 by HRH Prince Alwaleed Bin Talal Al Saud, Kingdom Holding has interests in many sectors such as hotels, real estate, banking, media, and social media. It owns the Four Seasons Hotel George V in Paris, and Londonâ&#x20AC;&#x2122;s Savoy Hotel, and it has stakes in Banque Saudi Fransi, the National Industrialization Company (Tasnee), Twitter, Uber, and Lyft, among others. In April, the Saudi Prince joined the battle against COVID-19 through his global philanthropic foundation, Alwaleed Philanthropies, by allocating $30 million in funding to fight the pandemic.

28 Dar Alarkan CEO: Anand Raheja Sales: $931 M Profits: $81 M Assets: $7.5 B Market Value: $2.4 B Sector: Real estate & Construction

27 Sipchem

Dar Alarkan was established in 1994 and has since developed 15,000 housing units and 500,000 square meters of luxury retail space. Based in Riyadh, Dar Al Arkan is a public shareholding company listed on the Saudi Stock Exchange (Tadawul). Anand Raheja has been CEO of the company since May 2019, having been promoted from his previous role as CFO. He has an MBA in finance from New York University.

Kingdom Holdings Company; Sipchem; Image from Source

CEO: Saleh M. Bahamdan Sales: $1.4 B Profits: $65 M Assets: $6.4 B Market Value: $3.1 B Sector: Petrochemicals The Sahara International Petrochemical Company (Sipchem) was formed in 2019 when Saudi International Petrochemical Company merged with the Sahara Petrochemical Company. It is one of the worldâ&#x20AC;&#x2122;s leading petrochemical companies with over 1,000 employees across more than 40 countries. Sipchem is expanding to fulfil growing demand from national refiners and petrochemical plants in Saudi through a potential strategic partnership with Linde PLC to supply industrial gases. It also contributed around $532,000 to the Health Endowment Fund. Zamil Group Holding Company is the biggest shareholder in the company. It owns 8.8% of the company. Saleh Bahamdan has been CEO since June 2019. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

SAUDI ARABIA IN FOCUS

CEO: Mutlaq Al Morished Sales: $805 M Profits: $-491 M Assets: $6.1 B Market Value: $2.2 B

THE LIST

Sector: Industrials The National Industrialization Company, popularly known as Tasnee, was established in 1985 as Saudi’s first privately-owned joint stock industrial company, with the aim of advancing economic diversification in Saudi Arabia. Alwaleed bin Talal’s Kingdom Holding Company is the largest shareholder with a 6.23% stake. Driven by best business practices and the goal of achieving profitable and sustainable growth for its stakeholders and society at large, today Tasnee is one of Saudi Arabia’s largest industrial companies and one of the world’s largest investors in titanium dioxide. Mutlaq H. Al-Morished is the CEO. Before this he was President of the Saudi Petrochemical Company. He has a MSc in nuclear engineering from Princeton University.

30 Jabal Omar CEO: Khalid Al-Amoudi Sales: $241 M Profits: $-105 M Assets: $7.8 B Market Value: $8.2 B Sector: Real estate & Construction The Jabal Omar Development Company is developing Jabal Omar—a multiuse real estate mega-development within walking distance of the Grand Mosque of Makkah. When complete, the Jabal Omar project will include a variety of five and four-star hotels with the capacity to host up to 36,000 guests a year and more than 100,000 visitors during Hajj season. The hotels are operated by international luxury hotel brands like Conrad, Hyatt Regency, Marriott, and Hilton. Khaled Mohammed Al Amoudi took the lead as CEO of the company in November 2019.

31 Abdullah Al Othaim Markets CEO: Abdulaziz Abdullah Al Othaim Sales: $2.2 B Profits: $93 M Assets: $1.3 B Market Value: $3.3 B Sector: Retail Founded in 1956 by the late Sheikh Saleh Al Othaim, Abdullah Al Othaim Markets provides consumer products in Saudi Arabia across more than 243 branches. The company has also expanded into Egypt and had opened 43 branches as of February 2020. In May 2020, the company upgraded from MSCI Saudi Arabia small cap index to MSCI Saudi Arabia index for leading companies, which currently includes 33 Saudi Companies. AbdulAziz Abdullah Al Othaim has been the CEO of the company since 2016. F O R B E S M I D D L E E A S T.CO M

32 Advanced Petrochemical Company CEO: Fahad Salem Al Matraﬁ Sales: $692 M Profits: $202 M Assets: $1 B Market Value: $3.3 B Sector: Industrials The Advanced Petrochemical Company was founded in 2005. It is currently managing an integrated complex in Al-Jubail City, which produces propylene and polypropylene with a production capacity of 500,000 tons annually. In March this year, AGIC—a subsidiary of the Advanced Petrochemical Company—signed an agreement with SKGP, a subsidiary of SK Gas, to incorporate the Advanced Polyolefins Company to construct and operate propane dehydrogenation and polypropylene plants at an estimated cost of $1.8 billion. Fahad Salem Al Matrafi became president and CEO in August 2019.

33 Tawuniya CEO: Abdulaziz H. Alboug Sales: $1.9 B Profits: $87 M Assets: $3.8 B Market Value: $2.8 B Sector: Insurance Headquartered in Riyadh, Tawuniya was the first national insurance licensed company in Saudi Arabia to practice all types of insurance business in accordance with Islamic Shariah. It provides more than 60 types of insurance. Among the company’s clients are Saudi Arabian Airlines (SAUDIA), the Ministry of Hajj and Umrah, and the Fawaz Al Hokair Group. Tawuniya’s gross written premiums exceeded $2.2 billion in 2019, compared to $2 billion in 2018. Abdulaziz Hassan Alboug has been CEO of the company since 2017. NOVEMBER 2020

Tasnee; Jabal Omar Development Company; Abdullah Al-Othaim Markets Co.; Advanced Petrochemical Company; Tawuniya

29 Tasnee

P RO M OT I O N

Building Never Stops Jeroen Beijer, General Manager at LEGO® MEA, reveals how the familyfavorite brand has kept growing and innovating through 2020 to never stop inspiring creativity. How long has LEGO® been in the Middle East and what has been your management style throughout the pandemic? What changes did you implement to ensure the smooth functioning of the business? We opened our MEA headquarters in Dubai in February 2019. Although we have been active in the Middle East via local distributor partnerships for over 60 years, being on the ground in the region has enabled us to better reach local markets and consumers and underscores our ambition to bring the LEGO Play experience to more children in the region.

What management decisions contributed to double-digit growth during H1 of 2020? As a market leader, LEGO® has been able to keep fans from around the world engaged by maintaining a strong pipeline of innovative products. Before COVID-19, and during we heavily invested in ecommerce, both via our own platforms and through our retail partners. Many major trends shaping our industry, such as digitalization, were accelerated due to the pandemic and our global supply chain and close collaborations with retailers allowed us to continue to fulfil online demand. Our broad portfolio appeals to builders of all ages with a variety of passion points, and these results are a testament to our efforts to diversify our offerings while bringing play to children and families from around the world. During the first half of 2020, we witnessed a rise in popularity for LEGO content on YouTube and saw success in products like the LEGO® Creator™ Expert Old Trafford - Manchester United and the LEGO® Technic™ Lamborghini Sián.

How has ecommerce helped to tide over the business from malls? Our LEGO Certified Stores’ new ecommerce platform operated by Majid Al Futtaim, Yellow Blocks, launched shortly before lockdown measures were implemented in the U.A.E. As can be expected, the resulting impact involved a significant shift from in-store sales to traffic to the website. Consumers that were not previously active via these channels began to recognize the convenience that ecommerce offers, leading to a surge in our ecommerce business over the past couple of months. Other ecommerce platforms we work closely with in the region have also witnessed a sharp increase, not only in overall business, but in LEGO® sales in particular as families look to keep their children engaged in activities that promote creative play. To ensure we’re catering to the needs of the multichannel shopper in Saudi Arabia, we’ve recently also launched our Saudi ecommerce website operated by Kamal Osman Jamjoom Group, Saudi Blocks. In future we will continue to expand our presence and create amazing experiences in both the physical and digital worlds to ensure we inspire and develop the builders of tomorrow through creative play.

What campaigns did LEGO bring out during COVID-19 and what was the response? We launched #LetsBuildTogether with a team of LEGO® designers, STEM gurus, and play experts to come up with new ways to help families and fans stay connected at home. We encouraged

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The thoughts expressed in this advertorial are those of the client. F O R B E S M I D D L E E A S T.CO M

fans to share their own creations on social media with the hashtag #LetsBuildTogether and also offered hours of free-to-access play ideas on our social media channels, including fun LEGO® lessons, daily building challenges, new play inspiration and live build-a-longs.

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When COVID-19 closed schools, stores and offices, we sought new ways to engage fans in digital play. We also supported those hit hardest by the pandemic by donating $50 million to a range of organizations that provide emergency relief to families and support for children learning through play. We worked hard to bring play to families around the world, including donating more than 250,000 sets to children in need.

• SAUDI ARABIA’S TOP LISTED COMPANIES •

TAREQ A. AL-SADHAN

RESILIENT REFORM

ALTHOUGH THIS YEAR HAS BROUGHT CHALLENGES, SAUDI’S BANKING INDUSTRY REMAINS STRONG THANKS TO DIGITALIZATION AND INVESTMENT. TAREQ A. AL-SADHAN, CEO OF RIYAD BANK, HAS HAD A FRONT-ROW-SEAT TO THE INDUSTRY’S TRANSFORMATION.

BY JASON LASRADO F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Image from Riyad Bank

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TAREQ A. AL-SADHAN

In recent years Saudi Arabia has encouraged consolidation in its banking sector to create stronger entities that are able to support the role of the private sector and help the kingdom diversify its oildependent economy. Today, Saudi has 30 local and international lenders serving a population of more than 30 million people. On October 8, 2020, the National Commercial Bank (NCB), Saudi Arabia’s biggest lender, agreed to merge with Samba Financial Group—this will be the biggest banking merger in Saudi’s history. Earmarked to be completed in the first half of next year, it will create the Arab world’s third-biggest banking entity, with assets worth $223 billion. The NCB-Samba merger comes a little over a year after the merger of the Saudi British Bank, an affiliate of HSBC, and Alawwal Bank, an affiliate of the Royal bank of Scotland, which was completed June 2019.

“Saudi banking outlook remains positive this year with expected profit growth driven by proactive policies by the government and a wide range of initiatives by the regulator.” Last year, Saudi’s Riyad Bank and NCB were also in talks for a merger, but in December the negotiations ended. While neither gave a reason for ending the deal, the two said in separate stock exchange filings that “the boards of both banks have decided to end preliminary merger talks and not to continue with the merger study.” Despite this, in 2019 the kingdom’s financial services industry was thriving, with the value of the total assets of the kingdom’s five largest banks increasing by 16% to reach $453.2 billion. The value of the banks’ combined loans and advances expanded by 15% to hit $270.6 billion, with a 53% growth in profits to $9.2 billion up from $6 billion in 2018. This growth came amid general positivity in the market, with both economic and cultural reforms initiated by the government. F O R B E S M I D D L E E A S T.CO M

But with 2020 came the COVID-19 coronavirus pandemic, and like the rest of the world Saudi Arabia was adversely affected. As lockdowns came into effect and oil prices crashed, the kingdom’s biggest source of revenue suffered. “We must acknowledge that the coronavirus pandemic that swept the world had a great impact on global markets and countries’ economies, which was reflected in banks performance indicators, especially during the second quarter, where the lockdowns were at their peak,” says Tareq A. Al-Sadhan, CEO of Riyad Bank. However, Saudi’s third largest lender appears to have already bounced back from the uncertainty of the pandemic. Its assets have grown 4.5% this year—the biggest growth in total assets among all commercial banks in the kingdom in the third quarter of 2020 (as compared to Q2). While their profits have dropped, the pandemic has not had a devastating effect on Saudi banks. All but one of Saudi’s banks still managed to turn a profit in the second quarter of 2020, even as the effects of the lockdown were at their peak and the kingdom’s economy contracted by 7%. Al-Sadhan says banks in the kingdom struck the right balance between health and safety and business continuity. “[They did this] by continuing to provide banking services without stopping and balancing between meeting customer needs on the one hand and adhering to preventive procedures and requirements on the other hand,” he adds. In fact, Saudi’s banking sector has played a crucial role in keeping the economy afloat, with support from the central bank, SAMA, providing vital assistance. By July 2020, Saudi banks had allocated over $13.6 billion into private sector financing programs, helping the kingdom’s private businesses keep going during tough times. Approximately 26,000 micro enterprises, 18,000 small enterprises, and 27,000 medium enterprises have benefited from programs initiated by SAMA. “The Saudi banking system was the lever that preserved the sustainability of the business of a wide range of companies and small and medium enterprises affected by the pandemic, and supported their ability to continue, recover and maintain their balance,” says Al-Sadhan. Future growth for banks will depend on the recovery in Saudi’s economy, and vice versa. According to the International Monetary Fund, Saudi’s economy is expected to contract by 5.4%, followed by a 3.1% recovery in 2021. Given the current operating environment, analysts expect the profitability outlook for Saudi banks to remain subdued despite some of them boasting of sound funding profiles and strong capitalization, which should support their creditworthiness for the next year. NOVEMBER 2020

Image from Riyad Bank

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Riyad Bank Founded in 1957 3rd largest bank in Saudi Arabia in terms of assets 341 branches 69,309 point of sale systems 2,501 ATMs $82.4 billion in assets $51 billion in loans $53.6 billion in deposits $1 billion in net income Figures as end of Q3 2020

and a wide range of initiatives by the regulator.” A slew of reforms in the kingdom—which include opening up entertainment and tourism destinations, creating public private partnerships, privatizing industries, and attracting foreign direct investment— will bring huge opportunities for banks and drive credit growth in the future. In his “Kingdom of Saudi Arabia Budget Report,” Dr. Abdullah Al Fozan, Chairman and Senior Partner at KPMG in Saudi Arabia states that “To support and develop the private sector, the government designed important initiatives such as the Private Sector Stimulus Package (PSSP) and the Privatization Program.” According to Al-Sadhan, while the public sector has traditionally played a bigger role in the kingdom, future success and growth for Saudi banks and the economy will depend on the private sector. This sentiment is echoed in Vision 2030’s Financial Sector Development Program (FSDP), which says “The FSDP will achieve this ambition by enabling financial institutions to support private sector growth, ensuring the formation of an advanced capital market.” The private sector and banks are dependent on each other. Banks are betting that future demand for credit will come from the private sector, as the Saudi government looks to unlock state-owned assets for the private sector by divesting several government-owned companies. Banks will have to help private entrepreneurs to finance these acquisitions. For small and medium enterprises to thrive, they need capital—this is where banks step in. To encourage private enterprise, Riyad Bank has implemented schemes like low-cost financing for SMEs at just 4%, without any charges for up to six months from the date of receiving the amount. “The contribution of Saudi banks into the local economy is not NOVEMBER 2020

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Al-Sadhan, a certified public accountant with over 23 years of experience in the financial sector, feels Saudi banks are well poised for the future. The Saudi banking system has showed its resilience, based on the strength of its capital base, the strength of liquidity, and the ability to adapt,” he explains. He has a right to be optimistic. Riyad Bank’s net income increased by 21.9% in Q3 2020 compared to the previous quarter, mainly due to a drop in total operating expenses and an increase in total operating income. Share prices have also recovered since the lows of March and are currently trading at $4.85—5.2% higher than a year ago ($4.61). Most analysts agree that Saudi’s banking sector is in a comfortable position in terms of capital adequacy and liquidity, but the future outlook for banks is up for debate. In its ratings and assessments in May, Moody’s Investors Service set rates in Saudi’s 11 banks at A1-negative. At the same time, it changed its outlook on long-term deposit ratings to negative from stable for 10 of the banks and maintained the negative outlook on the long-term deposits of one. Fitch Ratings has placed all Saudi Arabian banks’ viability ratings on “Rating Watch Negative” due to “heightened risks of unexpected severe and prolonged deterioration in the domestic operating environment for Saudi banks following the sharp fall in oil prices.” On April 20, the price of a barrel of crude (West Texas Intermediate), fell as low as minus $37.63 a barrel. Al-Sadhan disagrees. “During this year, and despite the circumstances, Saudi banks managed to grow the size of their assets to reach by the end of the first half to about $760 billion, registering a record level of 15% on an annual basis,” he claims. And KPMG agrees with him, stating that “Saudi banking outlook remains positive this year with expected profit growth driven by proactive policies by the government

TAREQ A. AL-SADHAN

new, rather it is inherent in the activity of Saudi banks since its inception and continues without interruption,” says Al-Sadhan. But achieving growth will be challenging. In its report “The $2 Trillion Question: What’s On The Horizon For Bank Credit Losses?” SP Global Ratings stated that “in Saudi Arabia, we also think that asset quality indicators will deteriorate, especially given that current conditions come at a time when the private sector was already under significant pressure. However, we note that most bank growth in recent years was spurred by mortgages to Saudi nationals, who are predominantly working for the government.” One major impact that the pandemic has had on banks is in moving the sector online. Thanks to the lockdowns, most bank customers were forced to use digital solutions, and many of them will never go back to traditional banking. According to data from Mastercard, in February and March contactless transactions in Saudi Arabia grew three times as fast as non-contactless transactions in the grocery and pharmacy categories, where many day-to-day essentials were being purchased. Approximately 78% of Saudi customers now consider contactless to be their preferred method of payment. In order to thrive banks will have to embrace technology and digitize. “[The] banking sector, which is gradually recovering from the consequences of the pandemic, must accelerate digital transformation, a step that we adopted at Riyad Bank early, and its results showed significantly during the lockdowns caused by the pandemic,” says Al Al-Sadhan. Riyad Bank is in the midst of its own digital transformation. As a part of this strategy, it launched a virtual assistant service to aid customer care, which can answer customers’ questions about services and products 24/7. Initiatives like this can also reduce costs for the bank. While several banks in the region, particularly in the U.A.E., are reducing the numbers of physical branches, Al-Sadhan feels they are still relevant. The CEO says that transforming the branches rather than closing them down is the answer, which means converting them into “smart branches,” where an interactive environment is created for customers. Fintech is another avenue where banks can see both competition and growth. In October last year, Riyad Bank became the first Saudi bank to set up an investment fund to exclusively invest in Fintech startups. Valued at $26.7 million, the fund aims to forge strategic partnerships with entrepreneurs and tech companies, providing Fintech solutions to create new industries and innovative business models. “It’s important to keep up with the latest trends in Fintech, which has the potential to streamline existing business processes while catering to the growing number of tech-savvy consumers,” says Al Sadhan. While the coming years may be challenging for banks, they will also bring great opportunities in technology, mega-projects, new industries and a transforming society. As Saudi’s banks begin this new phase in a strong position in terms of capital, how they implement their future plans will make the difference between success and failure. F O R B E S M I D D L E E A S T.CO M

Biggest Banks In The Middle East The merger of Saudi's National Commercial Bank and Samba Financial Group will create the region’s third largest financial institution, with assets worth $223 billion. Here are the two biggest banks in the Middle East in terms of assets as of the third quarter of 2020.

Assets: $270.9 billion The QNB Group is the biggest bank in the Middle East in terms of assets. The asset base of the bank is bigger than the GDP of Qatar, which is projected to be $147.7 billion. QNB was established in 1964 as the country’s first Qatari-owned commercial bank, with an ownership structure split equally between the Qatar Investment Authority and the public. It has since steadily grown to become one of the leading banks in the Middle East, Africa, and Southeast Asia region. Abdulla Mubarak Al-Khalifa became acting CEO in November 2018 and CEO in 2019. He is also a board member at Ooredoo.

Assets: $260 billion FAB, the U.A.E.’s largest bank, was formed in 2017 by the merger of the First Gulf Bank and the National Bank of Abu Dhabi. The Abu Dhabi Investment Council is the largest shareholder in the company. In a bid to combat climate change, FAB participates in climate and carbon reporting to the CDP to strengthen its sustainability targets, manage climate change risks, and identify new opportunities within the field. Andre Sayegh has been the CEO of FAB since February 2020. He was the CEO of the First Gulf Bank before the merger.

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SAUDI ARABIA IN FOCUS

THE LIST

TOP FAMILY BUSINESSES Our annual list of the Top 100 Arab Family Businesses In The Middle East looks at group investments, business diversification, business activity, number of employees, number of countries they are present in and date of establishment. Saudi Arabia dominated the 2020 list.

1 Olayan Group

2 Rashed Abdul Rahman Al Rashed & Sons Group Chairperson: Abudlaziz Al Rashed Established in: 1950 Sector: Diversified Founded in 1950 by Rashed Al Rashed, Saudi’s Rashed Abdul Rahman Al Rashed & Sons Group has 26 wholly-owned companies. It operates in seven business areas, including building materials, cement, and bulk materials, finishing materials, real estate, contracting, industrial products, automotive products, and food products. The company’s investments include 9.83% in Banque Saudi Fransi, 9.9% of Arab National Bank, and 16.9% of Al Yamamah Steel Industries making it one of the biggest private investors in the Saudi Stock market.

3 Abdul Latif Jameel

Chairperson: Hutham Olayan

Chairperson: Mohammed Abdul Latif Jameel

Established in: 1947 Sector: Diversified

Established in: 1945

Founded in 1947 by Suliman S. Olayan, the Olayan Group built its foundations in contracting and commerce in Saudi Arabia. Today, the conglomerate is famed for its diverse commercial, industrial operations and investment portfolio. The family owns 4.93% of Swiss bank Credit Suisse, and 18.24% of the Saudi British Bank. Real estate assets include 550 Madison Avenue in New York City, Knightsbridge Estate in London, and the Hotel Ritz in Madrid, as well as office, retail, and residential assets in Paris’s 8th Arrondissement. Hutham Olayan, who chairs the company corporate board, has also been a board member of IBM.

Sector: Diversified

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Abdul Latif Jameel was founded in Jeddah in 1945 by the Abdul Latif Jameel as a small trading business. Ten years later, the group was appointed as a Toyota distributor and built the largest vehicle distribution network in the kingdom. Today it operates in 30 countries in the Middle East, North Africa, and Turkey. Its core operations are mainly in transportation, engineering and manufacturing, financial services, land and real estate, energy and environmental services, consumer products, and advertising and media sectors. The group has grown through various investments and acquisitions. NOVEMBER 2020

The Olayan Group; Image from Source; Abdul Latif Jameel

SAUDI ARABIA’S

SAUDI ARABIA IN FOCUS

4 Zamil Group Holding

7 Al Nahla Group

Chairperson: Khalid A. Al-Zamil

Chairperson: Abdulrahman Hassan Sharbatly

Founder Abdullah Hamad Al Zamil first established his trade and services business in Bahrain in 1920. While its portfolio is dominated by whollyowned and joint-venture entities, Al Zamil Group also owns shares of two publicly-listed companies on Saudi Stock Exchange, Zamil Industrial and Sahara petrochemical. Zamil Industrial became the first family-owned company in Saudi Arabia to be listed on the Saudi Stock Exchange in 2002 and was later followed by Sipchem in 2006. Prior to his current positions, Khalid Al Zamil was chairman of the Saudi Council of the Chambers of Commerce.

Established in: 1996 Sector: Diversified The Al Nahla Group, founded by Hasan Abbas Sharbatly, is one of the oldest businesses in Saudi Arabia and belongs to the Sharbatly family. The holding and investment company is composed of four clusters: automotive, real estate, trading, and investment. Under its automotive sector are SAMACO Automotive and Fast Auto Technic. SAMACO Automotive imports and distributes Audi, Volkswagen, Porsche, Bentley, and Lamborghini. Fast Auto Technic is Saudi’s exclusive dealer of Ferrari and Maserati.

5 Al Muhaidib Group Chairperson: Sulaiman Al Muhaidib

Khalid Al-Zamil image from source; Al Muhaidib Group; Yousuf M.A. Naghi & Sons Group; Al Nahla Group; Khaled Al Juffali image from Shefa Fund

Established in: 1943 Sector: Diversified Investment conglomerate, Muhaidib Group was founded in 1943 by Abdulkadir Al Muhaidib. Today it has more than 200 companies and investments in the region. It holds stakes in some of Saudi Arabia’s leading organizations, including publicly-listed Savola Group where it owns 8.2% and Bawan Holding Company. The group’s investments are mainly focused on food and retail, industrial and infrastructure, real estate, and financial services. Abdulkadir Al Muhaidib ran the company until the 1980s and remained involved in decision-making along with his children, who took over the group’s management.

8 E. A. Juffali & Brothers 6 Yousuf M.A. Naghi & Sons Group

Chairperson: Khaled Al Juffali

Chairperson: Mohammed Yousuf Naghi

Established in: 1946 Sector: Diversified

Established in: 1911 Sector: Diversified

Brothers Ebrahim, Ali, and Ahmed Abdullah Juffali founded the E. A. Juffali & Brothers company in 1946 in the fields of electric power, communications, and cement. Juffali began growing its international partnerships with brands in the early 1950s including Electrolux, Siemens, and Massey Ferguson, mainly for product sale, marketing, and distribution. By 1959, Juffali became the exclusive distributor of DaimlerBenz AG’s Mercedes-Benz. From automotive, the company has expanded to technology, AC and refrigerator, construction, and chemicals.

Family conglomerate Yousuf M.A. Naghi & Sons Group is divided into four diversified companies— each managed by one of the sons of the founder, Yousuf M.A. Naghi. The group is Saudi Arabia’s exclusive wide sales and distribution agent for Rolls-Royce, BMW, Mini, and Jaguar. Its FMCG sector includes Reckitt Benckiser products such as Dettol, Harpic and Finish. The group also produces and distributes pharmaceuticals and food products, and electronic brands including LG. F O R B E S M I D D L E E A S T.CO M

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Established in: 1920 Sector: Diversified

SAUDI ARABIA IN FOCUS

9 Sedco Holding

12 Dallah

Chairperson: Saleh Salem Bin Mahfouz

Albaraka Holding

Established in: 1976 Sector: Diversified

Chairperson: Abdullah Saleh Kamel

THE LIST

10 Zahid Group Chairperson: Talal Zahid Established in: 1943 Sector: Diversified Headquartered in Jeddah, Saudi Arabia, the Zahid Group was founded by Mohamed Mahmoud Zahid. The group’s first business was to represent GM in the kingdom. Today it has a portfolio of 23 companies operating across 11 sectors and representing over 50 international and homegrown brands, including Volvo and Daewoo. The company specializes in the supply of heavy vehicles and has been dealing Caterpillar vehicles in the kingdom for over a half a century. Chairman Talal joined his family’s company in 1967.

Established in: 1969 Sector: Diversified Dallah Albaraka Holding was founded in 1969 by Saudi billionaire and philanthropist, Saleh Kamel. In its early years, the group cemented its name in the media sector, establishing a TV production company that provided materials for Arab TV stations. In 2012, Dallah Albaraka acquired a 12% stake of Belgium-based chocolate maker, Godiva and opened the first store in the kingdom in the same year. Founder and chairman Saleh Kamel passed away on May 18, 2020. Abdullah Saleh Kamel is the CEO and chairman.

13 Al Fozan Group Chairperson: Abdullah bin Abdul Latif Al Fozan Established in: 1959 Sector: Diversified

11 Saudi Bugshan Group Chairperson: Khaled Bugshan Established in: 2000 Sector: Diversified The Saudi Bugshan Group has been building its investment portfolio for nearly a century and is present in 10 countries across three continents. It manages and owns 17 businesses in sectors including real estate, automotive, food and beverage, education, healthcare and, beauty and fragrances. Its automotive unit consists of Al-Talayi Company Ltd, the oldest distributor of Bridgestone Tires in the world and the largest in MENA. Its education segment comprises the Advanced Generations International Schools, which deliver Cambridge International Curriculum to K-12 students. F O R B E S M I D D L E E A S T.CO M

The Al Fozan Group was founded in 1959 by Abdullatif and Mohamed Al Fozan who established a business that traded building materials. It has maintained its focus on the retail, manufacturing, real estate, and trading sectors. Two of the group’s businesses are listed on the Saudi Stock Exchange: Bawan Holding Company and United Electronics Company. The Al Fozan family took over the group and diversified its portfolio into consumer electronics, real estate development and homewares. NOVEMBER 2020

SEDCO Holding; Talal Zahid and Khaled Bughsan images from source; Dallah Albaraka Holding; Al Fozan Group

SEDCO is a Shariah compliant private wealth management and institutional investment company, founded in 1976 by Salem Ahmed bin Mahfouz. The Mahfouz family’s businesses include direct, financial, and real estate investments, as well as education and healthcare. SEDCO Holding wholly owns Saudi Arabia’s biggest car rental company, Auto World, which was founded in 1981. It also owns 50% of MENA’s largest pharmacy chain, Nahdi, 49.5% of Red Sea Mall in Jeddah, and 21.3% of Indonesia’s largest Islamic bank, Bank Muamalat.

SAUDI ARABIA IN FOCUS

14 Xenel Established in: 1973 Sector: Diversified Xenel was founded in 1973 by the descendants of one of the oldest trading families in the Middle East. It has interests in energy, petrochemicals, construction, infrastructure development, healthcare, industrial services, IT, logistics, real estate, and global investing in over 40 countries. Working with International Power and the World Bank, Xenel led the development of the first privately-owned green-field power plant in East Asia in Pakistan. Through its subsidiaries the group helped restore electricity back to Kuwait City in 1992.

15 Nesma Holding Group Chairperson: Saleh Ali Al-Turki Established in: 1979

Xenel; Nesma Holding Group; Aujan Group Holding; Abudawood Group; Al-Qahtani Holding

Sector: Diversified Headquartered in Jeddah, the Nesma Holding was founded in 1979. Founder Saleh Al-Turki served as the company’s president and chairman until his appointment as Mayor of Jeddah in July 2018. The group also operates in the U.A.E., Egypt, Turkey, and Croatia. It covers multiple sectors including engineering and construction, food and retail, materials and manufacturing, property management, hospitality and tourism, transportation, and marine and airport services, among others. In 2014, the group launched the Nesma Art Gallery, which aims to support and promote local artists.

16 Aujan Group Holding Chairperson: Abdulla Aujan Established in: 1905 Sector: Diversified AGH is a family-owned conglomerate, with a history that dates back to as early as 1905. One of its landmark partnerships was with the Coca-Cola Company in 2011, which led to the establishment of the Aujan Coca-Cola Beverages Company (ACCBC) and Rani Refreshments—the group’s FMCG business unit. The group also sells Vimto cordial in the Middle East. In 2014, ACCBC acquired the majority stake in Lebanese Coca-Cola bottler (NBC). In 2016, the group built another beverage manufacturing plant in Egypt. AGH owns The Oberoi Hotel Dubai. F O R B E S M I D D L E E A S T.CO M

17 Abudawood Group Chairperson: Anas, Ayman Abudawood Established in: 1935 Sector: FMCG Ismail Ali Abudawood founded the Abudawood Group in 1935. He has served for 30 years as President of the Jeddah Chamber of Commerce, among his other affiliations. Growing from a small wholesale business in Jeddah to one of the largest distributors of consumer goods in Saudi Arabia, Abudawood Group today is present in Yemen, Egypt, Iraq, Bahrain, and Pakistan. The group has been the exclusive distributor of Procter & Gamble (P&G) products in Saudi since 1956.

18 Al-Qahtani Holding Chairperson: Abdulaziz Al-Qahtani Established in: 1948 Sector: Diversified Founded by Abdulhadi Abdullah Al Qahtani in 1948, the AlQahtani Group has interests in beverages production and distribution, manufacturing, oil and gas, petrochemical, mining, real estate, and industrial sectors. Abdulhadi Abdullah Al-Qahtani & Sons Beverage Industry Ltd was established in 1982. It is the franchised bottler of Pepsi Cola, supplying soft drinks to more than four million people in the southern region of Saudi Arabia. Central Mining Co. Investment, explores, develops and operates mines across Saudi Arabia. Chairman Abdulaziz B. Al-Qahtani also chairs the Arabia Insurance Cooperative Company. NOVEMBER 2020

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Chairperson: Mohamed Zainal Alireza

SAUDI ARABIA IN FOCUS

22 Obeikan

19 Ajlan & Bros. Chairperson: Ajlan Bin Abdulaziz Al Ajlan Established in: 1979 Sector: Textiles Known for its classic menswear line, the Ajlan & Bros. Company manufactures ready-to-wear pieces and winter clothes, including its popular men’s headwear, Yashmagh and Ghuttra. Founded in 1979, the Riyadh-based company has operations in 10 countries. Ajlan & Bros. also has investments in the real estate sector in Saudi Arabia, Europe, Asia, the U.S., and China in addition to its private property investments. The company is run by the three Ajlan Brothers.

THE LIST

20 AlOthman Holding Chairperson: Mohammed Abdullah Al-Othman

Investment Group Chairperson: Fahd AlObeikan Established in: 1982 Sector: Diversified Founder and chairman Dr Fahad bin Abdul Rahman Al Obeikan established his first business, Obeikan Printing Press, in 1982. He diversified the group’s portfolio with 20 specialized companies. Today, the Obeikan Investment Group’s business units include bottling and packaging, printing and binding, publishing, curriculum development and e-learning. Its subsidiaries include Obeikan Glass Co. With an annual production capacity of 288,000 tons, the company exports to more than 30 countries worldwide. Obeikan Real Estate private residential cities and apartment complexes.

Established in: 1967 Sector: Diversified

23 Batterjee Holding Company Chairperson: Mazen Mohammed Ibrahim Batterjee Established in: 1982 Sector: Diversified

21 MASIC Chairperson: Ibrahim Alsubeaei Established in: 1933 Sector: Diversified MASIC was founded by Mohammed Ibrahim Alsubeaei in 1933. The family trading business evolved into a conglomerate and Saudi investment company, which focuses on financial services, real estate, agricultural (aquaculture), manufacturing, industrial, and retail. Its investment portfolio, which is segmented as asset, direct, and real estate, includes Bank Albilad, Fajr Capital, Lubaref, and National Aquaculture Group—the world’s largest integrated desert aquaculture operation. F O R B E S M I D D L E E A S T.CO M

The Batterjee Holding Company was founded in 1982, but its family history goes back to the establishment of I.H. Batterjee and Sons in 1908 by Ibrahim Hassan Batterjee. The group produces and distributes medical supplies and equipment, fabricated steel structures, construction materials, personal healthcare, and household detergent products, among others. Some of its companies are HomeCare Saudi Arabia, Batterjee Nordic Holding, Batterjee Mining and Services, Batterjee Packaging Systems, Batterjee Paper Products, Drop Clean, Batterjee Clinic, and Batterjee Pharma. NOVEMBER 2020

Ajlan & Bros.; AlOthman Holding; MASIC; Obeikan Investment Group; Batterjee Holding Company

The Othman Holding was established in 1967 by chairman, Mohammed Abdullah Al-Othman as a trading and contracting company. The group is involved in food, manufacturing, packaging, industrial manufacturing, oil and gas, and real estate. NADA, the company’s dairy arm founded in 1982, is one of the largest manufacturers of dairy products in the kingdom and owns 23,000 cows. The group also owns 12.7% of the National Agricultural Development Co. listed and is a majority shareholder in Takween Advanced Industries that manufactures plastic products—both companies are listed on the Tadawul.

SAUDI ARABIA IN FOCUS

26 Sumou Holding Company Chairperson: Ayedh Al-Qahtani Established in: 2008 Sector: Diversified

Chairperson: Ghurmallah Al Zahrani

Sumou Holding was established in 2008 and is involved in most of the industry sectors essential to Saudi Arabiaâ&#x20AC;&#x2122;s long-term successâ&#x20AC;&#x201D;including real estate investment and development, construction, logistics, and other related investments. Its success is powered by subsidiary companies such as Sumou Real Estate, which specializes in developing large real estate projects. The company recently listed Sumou Real Estate on the Saudi Stock Exchange (Tadawul).

Established in: 1975 Sector: Diversified Founder and chairman, Ghurmallah Al Zahrani, established the Zahran Operation & Maintenance Company (ZOMC) in 1975. Today it is one of the largest maintenance services companies in Saudi Arabia. Zahran Holding has expanded to construction and contracting, travel and tourism, financial and real estate investment, and home appliances through its 15 subsidiaries in Saudi Arabia and abroad. Some of its businesses are Lamar Travel Company, Zahran Real Estate, AlJoudah Security, Al-Mashriq Medical, and Badr Investment.

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24 Zahran Holding

27 Tamer Group Chairperson: Ayman Tamer

Ghurmallah Al Zahrani image from source; Almajdouie Group; Sumou Holding Company; Tamer Group

Established in: 1940 Sector: Diversified

25 Almajdouie Group Chairperson: Ali Almajdouie Established in: 1965 Sector: Diversified Established in 1965, Almajdouie Group business units include logistics, food, automotive, manufacturing, real estate, and investment, with operations in the GCC, North America, Europe, the Far East, the Middle East, and Africa. Almajdouie Steel Industries manufactures 200 trailers every month and distributes in Italy, South Africa, Nigeria, Kuwait, Bahrain Kingdom, and Sudan. F O R B E S M I D D L E E A S T.CO M

Tamer Group opened the first pharmacies in the kingdom. Today it has diversified into healthcare, beauty, and prestige products. The company supplies products and laboratory diagnostic machines to private pharmacies, private hospitals, government hospitals, and other healthcare institutions. It also manufactures pharma products through a joint venture with Daichi Sankyo Company Ltd and Astellas called SAJA Pharmaceuticals. NOVEMBER 2020

SAUDI ARABIA IN FOCUS

28 Al Faisaliah Group Chairperson: Abdulrahman Al Abdullah Al Faisal Established in: 1971 Sector: Diversified

29 Marei Bin Mahfouz Group &Co. Chairperson: Marei bin Mahfouz Established in: 1976 Sector: Diversified Founded by chairman Marei Bin Mahfouz in Makkah, Saudi Arabia, over 50 years ago, the Marei Bin Mahfouz Group is divided into the industrial, trade, and services sectors. The industrial division includes petrochemical, construction and building materials, textile industry, mineral and food processing. Its trade sector consists of Marei Bin Mahfouz Gold & Jewelry and Matajer Al Saudia. Marei Bin Mahfouz is also the deputy chairman of Mecca Chamber of Commerce and Industry and a member of the Holy Mecca Emirate Council.

31 Alissa Group Chairperson: AbdulMohsen Abdul Latif Al-Issa Established in: 1940 Sector: Diversified The Alissa Group is a diversified business group in Saudi Arabia, in the fields of real estate, finance, and transportation. Some of its investments are in Gulf Real Estate, Tania, Alpha Capital, Alissa Auto, and Alissa Universal Motors, among others. The group was founded by Abdullatif Alissa in the 1940s, which was initially focused on textiles and food trading. Chairperson Abdulmohsen Alissa began his career with Aramco.

32 Omar Kassem 30 Alkhorayef Group

Alesayi Group

Chairperson: Saad Alkhorayef

Chairperson: Saeed Omar Kassem Alesayi

Established in: 1957 Sector: Diversified

Established in: 1945 Sector: Diversified

The Alkhorayef Group was founded in 1957 by the late Abdullah Ibrahim Alkhorayef. Initially the group’s main business was in agriculture, but today the group has diversified its operations to include farming, irrigation, sewage treatment, power generation, lubricant manufacturing, and printing solutions. It has also expanded geographically to manufacture, supply, operate, and maintain equipment in more than 40 countries. Saad Alkhorayef is the chairman and CEO of the group, and has been instrumental in the growth of the company.

Based in Jeddah, Saudi Arabia, the Alesayi Group was established by Omar Kassem Alesayi in 1945. Its business lines include general trading, real estate, consumer and trading, manufacturing, engineering and technology, and services and investments. It carries automotive brands such as Mitsubishi Motors, Fuso Trucks, Chrysler, and Dodge. Panasonic, TCL, Moulinex, and TEFAL fall under its consumer electronics brand portfolio. Chairman Saeed Omar K. Alesayi is also a board member at Sahara International Petrochemical Company.

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NOVEMBER 2020

Marei Bin Mahfouz Group; Alkhorayef Group; Alissa Group; Saeed Omar Kassem Alesayi, image from source

THE LIST

Founded in 1971 and headquartered in Riyadh, Saudi Arabia, the Al Faisaliah Group’s main sectors include dairy, electronics, healthcare, and food service. It owns restaurant brands such as Steak House, Piatto, Fire Grill and City Fresh Kitchen. Under its dairy division is Al Safi Danone (ASD)—a joint venture between AFG’s Al Safi Dairy Company and French company, Groupe Danone. ASD operates the world’s largest integrated dairy farm, with 50,000 cows that produce over a million liters of fresh milk every day. Chairman Abdulrahman Al Abdullah Al Faisal has also chaired the Qassim Cement Company.

SAUDI ARABIA IN FOCUS

33 El Seif Engineering

36 Tamimi Group

Contracting Company

Chairperson: Tariq Al Tamimi

Chairperson: Khaled Musaed El Seif

Established in: 1977

Sector: Diversified The El Seif Engineering Contracting Company was established in 1975. It is part of the El Seif Group headquartered in Riyadh. In 1989, the company completed the civil works and military structures for its first military project, the Air-Field Facilities Project for the Royal Saudi Air Force. Among its most notable MEP projects are the Sabic Plastics Application Development Center, and the Millennium Hotel in Hail and Tabouk.

34 Arabian Fal Holding

El Seif Engineering Contracting Company; Images from source; Tamimi Group; ACWA Power

Chairperson: Saleh Abdullah Al-Sayed

Sector: Diversified Founded in Dammam, Saudi Arabia, over 60 years ago by Ali bin Abdullah Al-Tamimi, the Tamimi Group has grown from being a Pipelines Installation Company, to entering the fields of construction, contracting, trade, industry, catering, maintenance, operation, and retail. The group currently has over 10 joint ventures and 30 companies. Its trading arm, the Tamimi Commercial Division, is one of the kingdom’s oldest and largest distributors. The family owns 22% of Tadawul-listed Basic Chemical Industries.

37 Abunayyan

Established in: 1979

Holding

Sector: Diversified

Chairperson: Mohammad Abunayyan

Saudi-owned Arabian Fal Holding was founded in 1979, with 12 business units in 15 locations. Its expertise lies on site development, construction, operations and maintenance, scaffolding services, industrial cleaning, and hazardous material transport mainly for the Saudi Arabian oil and gas industry. Among its high-profiled industry clients are Saudi Aramco, SABIC, and Marafiq.

Established in: 1950 Sector: Diversified

35 Alturki Holding

Abdullah Abunayyan founded Abunayyan Holding in 1950. It is one of Saudi Arabia’s longest-active companies in the power and water business. Abunayyan Holding introduced the first dieselpowered turbine pump, which changed the agriculture scene of the kingdom. Today, the company’s core activities include engineering, manufacturing, supply, construction, and service, with 14 business units. Chairman Mohammad A. Abunayyan also chairs ACWA Power International and is a member of the Advisory Committee of the Chairman of High Supreme Economic Council.

Chairperson: Khalid Alturki Established in: 1975 Sector: Diversified Alturki Holding was founded in 1975 in Saudi Arabia. Through its subsidiaries, joint ventures, and venture capital, Alturki’s investment portfolio spans construction and building materials, infrastructure, transportation, information and communications technologies, oil-field tools and services, and real estate. Its subsidiary, Saudi Readymix, is the country’s largest producer of ready-mixed concrete products. Founder and chairman Khalid Ali Alturki was also the former chairman of the Advisory Council at the Center for Middle Eastern Studies at Harvard University.

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Established in: 1975

SAUDI ARABIA IN FOCUS

SAUDI ARABIA’S

In our 2020 ranking of the 20 Most-Valuable Insurance Companies In The Middle East, Saudi Arabia dominated the list with eight entries. Market value here is as of October 8, 2020.

1 Bupa Arabia for Cooperative Insurance

2 Company for Cooperative

CEO: Tal Hisham Nazer

Insurance (Tawuniya)

Market Value: $4.2 B Established in: 1997 Leading British health insurer, Bupa, established its Saudi presence in 1997 as a joint venture between the British United Provident Association Limited and the Saudi Nazer Group. The company went public in 2008—it was oversubscribed by more than 900%, making it one of the most successful IPOs for an insurance company in the kingdom. In 2019, Bupa Arabia’s total comprehensive income jumped by 61.5% to reach $174.2 million.

CEO: Abdulaziz Hassan ALBoug Market Value: $3 B Established in: 1986 Tawuniya was the first national insurance licensed company in Saudi Arabia to practice all types of insurance business in accordance with Islamic Shari’ah. It provides more than 60 types of insurance including medical, motor, fire, property, engineering, casualty and marine, among others. In 2018, Tawuniya launched a 360° integrated insurance program for SMEs. Among the company’s clients are Saudi Arabian Airlines (SAUDIA), the Ministry of Hajj and Umrah and Fawaz Al Hokair Group. Tawuniya’s gross written premiums exceeded $2.2 billion in 2019, compared to $2 billion in 2018.

3 Al-Rajhi Takaful CEO: Abdulaziz Mohammed Al Sedeas Market Value: $851 M Established in: 2008 Saudi’s AlRajhi Takaful offers Shari’ah compliant insurance products for corporates and individuals, including motor, health, and travel insurance. It has also developed services to specifically benefit women on the road, such as its “Guardian Angel on Call” and roadside assistance. Al Rajhi Takaful’s gross written premiums exceeded $685.2 million in 2019. It provides services to more than a million customers, and in the last quarter of last year signed an agreement with Abdul Latif Jameel United Finance Company and United Instalment Sales Co. to provide motor insurance for vehicles owned by Abdul Latif Jameel. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Image credits: Bupa; Tawuniya; Al-Rajhi Takaful

THE LIST

MOST-VALUABLE INSURANCE COMPANIES

SAUDI ARABIA IN FOCUS

6 Walaa Cooperative Insurance

CEO: Tarek Abdullah Al-Naeem

CEO: Johnson Varughese

Market Value: $521 M Established in: 2007

Market Value: $380 M Established in: 2007

With four branches, 31 points of sales and more than a million clients, MEDGULF provides cooperative health, motor, property and other insurance and reinsurance services. MEDGULF’s gross written premiums increased by 17% in 2019 to hit $650 million, compared to around $550 million in 2018. It also covers emergency medical conditions globally through its Musafer Insurance program, which offers protection for clients when traveling. The Saudi Electricity Company and Binladin Group are among the company’s clients.

Headquartered in AlKhobar, the oil hub of Saudi Arabia, Walaa Cooperative Insurance has three offices and more than 65 retail outlets across the kingdom. As of 2019, the company’s assets were valued at $541.9 million while its gross written premiums reached $324.1 million. In the same year, it generated revenues of $197.2 million. Walaa was founded and listed on Tadawul in 2007. In 2020, the company announced the completion of its merger with MetLife AIG ANB.

7 Al Alamiya for Cooperative Insurance Co. CEO: Khalid Jaafar Mostafa Allagany Market Value: $274 M Established in: 2009 Al Alamiya was established in 2009 in Saudi Arabia to carry out cooperative insurance. It has assets worth $235.7 million and gross written premiums of $58.6 million as of 2019. Shareholders include one of the oldest insurance companies in the world, the British Royal & Sun Alliance Middle East, which controls 50.1% of the company.

8 Saudi Re for Cooperative 5 AXA Cooperative Insurance Company CEO: Gary M Lewin

MEDGULF

Market Value: $480 M Established in: 2008 AXA Cooperative provides diversified insurance and reinsurance products in various classes, including engineering, fire and property, marine (cargo), accident and liability, motor, health and group life. AXA Cooperative is part of the AXA Group— headquartered in France—with presence in 61 countries, including regional operations in Bahrain, U.A.E., Oman, Lebanon, Jordan, Turkey, and Morocco. The Saudi company’s gross written premium was valued at $380 million in 2019. F O R B E S M I D D L E E A S T.CO M

Reinsurance CEO: Fahad Abdulrahman AlHesni Market Value: $272 M Established in: 2008 Saudi Re for Cooperative Reinsurance was the first fullfledged reinsurance company in Saudi Arabia. It was established in 2008 and offers facultative and treaty solutions both on a proportional and non-proportional basis. The Riyadh-based insurer serves clients in more than 40 countries across MENA, Asia, and Africa. The company’s gross written premiums were worth $211.4 million as of 2019.

NOVEMBER 2020

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4 MEDGULF

SAUDI ARABIA IN FOCUS

TOP 10 INTERNATIONAL CEOS HEADING SAUDI COMPANIES

1 Camile G. Saba

4 Steen Flemming Hadsbjerg

Company: Olayan Group Designation: Group CEO Nationality: American

Company: National Agricultural Development Co (NADEC)

Sector: Diversified

Designation: CEO Nationality: Danish

Camile G. Saba is the Group CEO, of the Olayan Group, which is one of the largest family-owned conglomerates in Saudi Arabia having been established in 1947. A long-time employee, Saba joined the Olayan Group in New York in 1986 and assumed his role as CEO in 2019, before which he had been the managing director of Olayan America since 2014. The group directly runs a host of industrial businesses in Saudi and has invested in real estate, hospitality, and public and private companies across the globe. Saba is a founding member of the company’s global management team.

2 David Robert Dew Company: Saudi British Bank (SABB) Designation: CEO Nationality: British Sector: Banking David Robert Dew is the Managing Director of the Saudi British Bank (SABB), which is a Saudi-based bank and associate of the HSBC Group. SABB is among the biggest banks in the kingdom with assets of $70.8 billion in 2019. Dew assumed his role in 2010, before which he had occupied several managerial positions in the HSBC Group since 1977. He is currently a board member of SABB, HSBC Saudi Arabia Limited, and HSBC Bank Middle East. Dew started his journey with SABB as a deputy managing director and chief operating officer from 2001-2004. He holds a master’s in economics from Trinity College, the University of Cambridge.

3 Robert Maron Eid Company: Arab National Bank Designation: CEO Nationality: Lebanese Sector: Banking Robert Maron Eid is the CEO and Managing Director of the Arab National Bank, a large Saudi bank with assets of $48.9 billion, in which he has been working since 2006. Besides the bank, he is a board member of the Saudi Home Loans, the Arab National Investment Co., and the Saudi Co. for Housing Finance. Eid holds a master’s degree from the American University of Beirut, as well as a PHD in banking and finance from the Sorbonne University in Paris. After 14 years of working with the Arab National Bank, enhancing its performance and scoring a number of achievements, Eid resigned in September 2020, and is due to leave by February 2021. F O R B E S M I D D L E E A S T.CO M

Sector: Food Steen Flemming Hadsbjerg has been the CEO of the National Agricultural Development Co (NADEC) since March 2020, before which he served as the VP and managing director of Arla Foods for five years. Hadsbjerg has more than 25 years of experience in international shipping, management, leadership, and business development. At NADEC, one of the largest agricultural and food-processing companies in MENA and the third largest listed food company on Tadawul, Saudi’s PIF is the largest shareholder in the company with a 20% stake. The company was established by royal decree by King Faisal bin Abdul Aziz, to ensure food security in the kingdom. Hadsbjerg holds an MBA from Copenhagen Business School.

5 Anand Raheja Company: Dar Al Arkan Real Estate Development Company Designation: CEO Nationality: Indian Sector: Real Estate Anand Raheja is the CEO of Dar Al Arkan Real Estate Development Company, which is among the largest property development firms in Saudi Arabia with assets of $7.5 billion in 2019. Before assuming his position in 2019, Raheja served as the CFO of the company from 20182019, before which he worked with several real estate firms in the Middle East, the UK, the U.S., and India. He has almost 40 years of experience. Raheja holds a master’s degree in finance from New York University. NOVEMBER 2020

The Olayan Group; David Dew Image from Source; ANB

THE LIST

Saudi Arabia is reportedly home to more than 10 million expats according to estimates, with this number expected to have dropped over the course of 2020. Many of these expats hold executive positions across industries, and some have risen to lead a number of the kingdom’s biggest companies. Here are 10 of the top international CEOs heading Saudi companies.

SAUDI ARABIA IN FOCUS

9 Samer Abu Aker Company: SEDCO Capital Designation: CEO Nationality: Canadian Sector: Inventemnts

7 Waltherus

Moukarzel

Cornelis Petrus Matthijs

Company: Fawaz Alhokair Group Nationality: Lebanese

Company: Saudia Dairy and Foodstuff Co. (SADAFCO)

Sector: Retail

Designation: CEO

Marwan Moukarzel has been in his current role since 2019. Fawaz Ak Hokair is the largest franchise retailer in Saudi Arabia. With sales of $1.4 billion in 2019, the company operates over 1,500 stores in 13 countries and sell 80 brands, including Zara, Aldo, GAP, and Costa Coffee. Before taking on his current role, he served in several roles ranging between CFO and CEO of the AZADEA Group, where he saw the company’s expansion into several new markets. Moukarzel holds an MBA from INSEAD. He is also a U.S. certified public accountant and a U.S. certified internal auditor.

Nationality: Dutch

Designation: CEO

Sector: Food Waltherus Matthijs has been the CEO of the Saudia Dairy and Foodstuff Co. (SADAFCO) since 2008, before which he worked for companies including Friesland Foods Wamco Nigeri, Dec Flexible Technologies, and Koninklijke van Ommeren. He has also been a board member of AL Hassan G I Shaker Co. since May 2019. SADAFCO produces dairy products and other readyto-eat food and had sales of $548 million in the financial year 2019/20.

8 Justin Musgrove Company: Leejam Sports company Designation: CEO Nationality: British Sector: Sports

Images from Source

Justin Musgrove is the CEO of Leejam Sports, a health and fitness network operator in the Middle East currently valued at just under $1 billion. Musgrove and his team operate more than 135 fitness centers across the U.A.E. and Saudi Arabia. He joined the company in September 2019, before which he served as CEO of the Bannatyne Group. He worked for the Bannatyne Group for 13 years, during which time the company grew from 24 spas to more than 50 spas, 72 health clubs, and four hotels.

Methodology: To create this list, we looked at and analyzed: F O R B E S M I D D L E E A S T.CO M

10 Gary M Lewin Company: AXA Cooperative Insurance Company Designation: CEO Nationality: British Sector: Insurance Gary M Lewin is the CEO of AXA Cooperative Insurance Company, which is a publicly-listed Saudi joint stock company, with assets of $671 million in 2019. The company has more than 370 employees working across 16 branches in Saudi Arabia offering car, travel, home, and personal accident insurance. Lewin assumed his role in 2010, before which he served as the company’s general manager and the sales and distribution manager.

• The size of the company in terms of revenues and assets • The executive’s years of experience

• The company’s performance in the last year • Editorial points, including engagement with media, market reputation and impact NOVEMBER 2020

99 THE LIST

6 Marwan

Samer Abu Aker became CEO of SEDCO Capital in 2019, having joined the firm in 2011. He has also held the positions of COO and CFO. Abu Aker also chairs SEDCO Capital’s investment and management committees and the board of directors of SEDCO Capital Global Funds in Luxembourg, and he is a certified public accountant.

SAUDI ARABIA IN FOCUS

The startups on our annual 50 Most-Funded Startups In The Middle East list have to have raised at least $5 million in total funding from external investors, excluding foundersâ&#x20AC;&#x2122; shares and loans. In 2020, the U.A.E. had the most active startup ecosystem, but Saudi Arabia came in second with seven startups headquartered there.

1 Nana Founders: Sami Alhelwah, Abdulmajeed Alsukhan, Bakr Elsherif, Ahmed Alsamani e-Grocery marketplace platform

Funding: $28.9 million Investors: MEVP, STV, Saudi Venture Capital Company, Watar Partners, Wamda Capital, others. Headquarters: Saudi Arabia Established in: 2016 Since its launch in 2016, Nana has established itself as a leading e-grocery marketplace in Saudi Arabia, serving 14 cities across the kingdom. According to the company, it has tripled its turnover over the past year, as well as partnered with major supermarkets such as Carrefour, Panda, Spar, Farm Superstores and Manuel. In 2020, Nana raised $18 million to further expand across Saudi Arabia and internationally. It aims to deliver 100,000 orders every month to Saudi-based buyers by the end of 2020. Co-founder Sami Alhelwah previously co-founded Sadeem, a cloud management solutions company.

2 PayTabs Founder: Abdulaziz Al Jouf Payments solutions provider Funding: $26 million Investors: Saudi Aramco, Other private investors Headquarters: Saudi Arabia Established in: 2014

PayTabs specializes in B2B payments solutions and has so far processed transactions in 168 currencies across 49 industries, according to the company. Having secured a funding round of $20 million in 2017, PayTabs has focused on expanding across the MENA region, Southeast Asia, and several countries within Africa and Europe. It has offices in the U.A.E. and a presence in India, the Philippines and Bahrain. In 2019, the company set up operations in Egypt for the first time. It plans to launch its third product, PayTabs Switch, this year. F O R B E S M I D D L E E A S T.CO M

NOVEMBER 2020

Images from Source

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100

SAUDI ARABIAâ&#x20AC;&#x2122;S MOST-FUNDED STARTUPS

SAUDI ARABIA IN FOCUS

3 Noon Academy Founders: Abdulaziz AlSaeed, Mohammed Aldhalaan Online learning platform Funding: $21.6 million Investors: Raed venture, STV, NFX, SVC, SFX, Alturky holding and angel investors

101 THE LIST

Headquarters: Saudi Arabia Established in: 2013

Noon Academy provides an online learning community that enables students to engage with peers and tutors. It offers virtual classrooms and live group study sessions. The Saudi startup has registered over 6.9 million students on its platform to date. Noon was first launched in Saudi Arabia, then Egypt, and has recently expanded to Oman, Kuwait, Iraq, Jordan, and India. In June 2020, Noon raised $13 million in a pre-Series B funding round. It plans to connect 50 million students and tutors globally by 2023.

5 Dokkan Afkar Founders: Ammar Waganah, Mohamad Nasrallah, Abdullah Bajri Homegrown gadgets, gizmos and gifts e-commerce platform Funding: $7.6 million Investors: BIAC, Venture Souq, Riyad TAQNIA Fund, SVC Headquarters: Saudi Arabia Established in: 2013

4 Foodics

Dokkan Afkar is an online shopping website for gizmos and gadgets, with operations in Saudi Arabia, Kuwait, the U.A.E., Bahrain and Oman. Products range from home gadgets to unique technology items to creative fashion items. The company raised $5.6 million in late 2019, which it plans to use to increase its homegrown product inventory and to expand its customer base throughout the Middle East. Co-founder Abdullah Bajri also founded Mahabaa, an online gift-delivery service, in 2017.

Founders: Mosab Alothmani, Ahmad Alzaini All-in-one restaurant management system Funding: $7.7 million Investors: Al Riyadh Investment, Naseel Holding, Raed Advanced Investments, Derayah, Elm, Taqnia,500 startups

Images from Source

Headquarters: Saudi Arabia Established in: 2016

Foodics is a cloud-based all-in-one restaurant management system for F&B outlets in MENA. Co-founders Ahmad Alzaini and Mosab Alothmani met while they were college classmates at King Fahd University in Saudi Arabia. Today, Foodics has over 10,000 customers and has processed over a billion orders, with five offices across Saudi Arabia, the U.A.E., and Egypt. The company raised $2.2 million in funding in 2020 from venture capital firms Derayah and Elm. It is currently closing a Series B round, according to the CEO.

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SAUDI ARABIA IN FOCUS

6 Sary Founders: Mohammed Aldossary, Khaled Alsiari Digital B2B marketplace Funding: $7 million 102

Investors: Raed VC, MSA Capital, Derayah, Angel Investors

THE LIST

Headquarters: Saudi Arabia Established in: 2018

Sary connects small businesses such as mini-supermarkets, restaurants, cafes, and hotels, with suppliers, in order to facilitate inventory procurement. The marketplace has more than 11,000 users currently and recorded 20,000 shipments with a gross merchandise value of $20.8 million in 2019, according to the company. Sary has raised $6.98 million in total funding, with $6.6 million secured in 2020 alone.

7 Cura Founders: Wael A. Kabli, Mohammad G. Zekrallah Telehealth platform Funding: $6 million Investors: Enma for Business, undisclosed investor Headquarters: Saudi Arabia Established in: 2016

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Cura is a telehealth platform that enables patients to receive consultations, diagnoses, prescriptions, and well-being therapy sessions through instant messaging and live video calls from their mobile phones. There is also a feedback mechanism so patients can rate the doctors and give feedback on the service. The company has more than 3,000 registered doctors and more than 1.7 million users, operating from Saudi Arabia, Egypt, and Turkey. They have conducted over two million telemedicine consultations to date. NOVEMBER 2020

• THOUGHT LEADERS • By Fadhel Isa, Chief Technology Officer at Ericsson Saudi Arabia

There is a unique power in technology that encourages creativity and transforms people’s lives, businesses and society. Cellular, fixed broadband, and wireless technologies are all essential for helping businesses of all sizes keep things running remotely. Cellular networks that make this possible are underpinned by technology that emerged from a lengthy and collaborative development process driven to a great extent by inventive private companies. This collaboration is key to developing the connectivity solutions that we are relying on more than ever today, and it will be key for enabling future innovation to bring us even closer together. The importance of collaboration was also highlighted by His Highness King Salman bin Abdulaziz Al Saud as the kingdom assumed the 2020 G20 presidency. The summit aims to harness the power of collaboration to forge mutually beneficial solutions, face challenges and create opportunities. Saudi Arabia is driven by aspirations to leverage innovation and shared learning to build a better life for its people. Innovation is a key part of its Vision 2030—a futuristic vision that will be realized through nextgeneration technologies. From a mobile data traffic point of view, the Middle East and Africa’s growth forecast is the highest globally at a rate of nine times growth, with the average data consumed per smartphone expected to reach 23GB per month in 2025. How will service providers manage a massive increase in mobile data traffic and address the growing complexity of the network? By deploying the best technology for the job—and that’s 5G. The region’s ICT industry has never seen anything like the journey to 5G. MENA is expected to reach 80 million 5G subscriptions by 2025, 5G presents an incredible opportunity for service providers to reap the rewards of

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new use cases and offer services that generate revenue growth. Commercial 5G deployments with leading service providers took place during 2019 and 5G subscriptions have already surpassed 500,000 subscribers, mainly in the Gulf countries. Now is the time for service providers to use their market-leading technologies to develop solutions that empower people and businesses. The kingdom has commercially deployed 5G to enhance the digital lives of people, enterprises, and industries. Enhanced mobile broadband is the first large-scale global use case for 5G, which is a key factor to remember as it drives the next wave of productivity within the ICT sector. The shift to 5G will bring enhanced mobile broadband to data-hungry subscribers across Saudi Arabia with huge speed and low-latency changes in on-the-go user experiences such as streaming, downloading, gaming, infotainment, and interactivity. Upgrading to 5G will also bring rapid relief to consumers suffering from capacity constraints in their networks. 5G will introduce new capabilities that will allow operators to develop new use cases, applications, services and revenue streams, towards consumer, enterprise and different industries and markets. However, for the full 5G potential, large-scale rollout and to achieve long-term success, two main areas need to be addressed: spectrum availability and use-case development. Though 5G opportunities are substantial, they do not come without their challenges. Mobile service providers need considerable support from regulators to carve out enough spectrum in existing mid- and low bands. On the other hand, high band and mmWave spectrum is needed for addressing ultra-low latency cases like automation, Augmented Reality (AR) and remote monitoring. An abundance of possibilities that were once only things of science fiction are now within reach for us.

NOVEMBER 2020

103 THOUGHT LEADERS

The Road To 5G Leads The Way To Diversification

SAUDI ARABIA IN FOCUS

SAUDI ARABIA’S POWER BUSINESSWOMEN 2020 Our annual list of the Middle East’s 100 Power Businesswomen considers criteria including the size of the businesses that these women head, their accomplishments over the previous year, the initiatives they champion, and their overall work experience. In 2020, the top 10 was dominated by Saudis, with three of the country’s biggest names in the top five: Samba Financial Group’s Rania Nashar, Tadawul’s Sarah Al Suhaimi, and Saudi British Bank’s Lubna Olayan.

1 Rania Nashar Company: Samba Financial Group Designation: CEO Sector: Banking and Financial Services Nashar is the first female CEO of Saudi commercial bank, Samba Financial Group. She became CEO in 2017, at a time when Saudi Arabia was just beginning to implement reforms to promote gender equality as part of its Vision 2030. Samba Financial Group is Saudi Arabia’s fourth-largest bank, with $63 billion in assets as of September 2019. Samba has agreed to merge with NCB, the merger should take place in the first half of 2021. Nashar previously served as a board member for Samba’s global markets subsidiary and has over 20 years of experience in the commercial banking sector. In 2019, Nashar was ranked as the 97th most powerful woman in the world by Forbes.

2 Sarah Al Suhaimi Company: Tadawul; NCB Capital Designation: Chairperson; CEO Sector: Banking and Financial Services Al Suhaimi is the chairperson of Tadawul, the Middle East’s largest stock exchange. Last year the exchange saw the listing of the world’s largest company, Saudi Aramco, at a value of $1.7 trillion. Al Suhaimi has also been the CEO of NCB Capital since March 2014 and a member of the company’s Board of Directors. Since then she has played a pivotal role in restructuring NCB Capital, leading to growth, product development and major technological advances for the company and its clients. She is a graduate of Harvard University and the King Saud University.

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3 Lubna Olayan Company: SABB Designation: Chairperson Sector: Diversified Olayan became the first Saudi woman to serve on the board of a publicly-traded company in 2004 for the Saudi Holandi bank. Although that bank no longer exists, Olayan remains one of Saudi Arabia’s most accomplished businesswomen. In April last year she retired as CEO of the Olayan Financing Company (OFC) after 33 years at its helm. The OFC is the Riyadh-based investment arm of her family business—the Olayan Group. Olayan is still a member of the group’s Corporate Board of Directors, the Shareholders’ Board, and the Olayan Family Council. In June 2019 she became the chairperson of the third largest bank in the kingdom, the Saudi British Bank (SABB).

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4 Basmah Al-Mayman

5 Shihana S. AlAzzaz

Company: World Tourism Organization

Company: Public Investment Fund

Designation: Regional Director

Designation: General Counsel & Secretary General to the Board

Sector: Travel & Tourism Al-Mayman was the first GCC national to become director of the UNWTO Regional Department for the Middle East. Before joining the department in 2018, she had over 17 years of experience at the Saudi Commission for Tourism and National Heritage. She is the first GCC national to represent the UNWTO at a regional level. In addition, Al-Mayman was a member of the Board of Directors of The UNWTO Sustainable Tourism - Eliminating Poverty Initiative (ST-EP) for the Middle East Region.

Sector: Investments The Public Investment Fund is one of the largest sovereign wealth funds in the world, and it is aiming to increase its assets under management to over $400 billion this year, according to the Saudi 2030 vision. She has been the general counsel of the fund since August 2018. While in law school at Durham University, she served as a Saudi representative in the US Middle East Partnership Initiative.

6 Aisha Al Mana Company: Mohammad Al-Mana College of Health Sciences Designation: Founder Sector: Healthcare The Olayan Group; Images from Source

While running one of the largest group of hospitals in Saudi Arabia’s Eastern Province with her family, AlMana simultaneously founded the Mohammed Al Mana College of Health Sciences. AlMana group are among the largest healthcare service providers in the eastern region of Saudi Arabia and have a heritage of over 70 years.

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SAUDI ARABIA IN FOCUS

THE 10 MOST SUCCESSFUL

SAUDI FEMALE ENTREPRENEURS BEHIND HOMEGROWN BRANDS Our annual Women Behind Middle Eastern Brands list features the female trailblazers that have sustained successful brands and pushed the boundaries. In 2020, Saudi Arabia had 10 entries on the list.

2 Arwa Al Banawi Brand: Arwa Al Banawi Category: Fashion Establishment: 2015 Headquarters: KSA & U.A.E Arwa Al Banawi established her namesake ready-to-wear brand in 2015, with the slogan “The Suitable Woman,” which celebrates the woman on the go. Her high-end streetwear designs have since been worn by celebrities including Jaden Smith, Jessie J, and Kris Jenner. Al Banawi has collaborated with global brands such as Pepsi, Adidas, and Levi’s to create designs that bridge the gap between western and Arab culture. Arwa Al Banawi is based in Dubai, and her items can be found at high-end department stores across the Middle East.

1 Razan Alazzouni Brand: Razan Alazzouni Category: Fashion Establishment: 2008 Headquarters: Saudi Arabia Razan Alazzouni established her eponymous fashion brand more than a decade ago, after studying at the TUFTS University’s School of Fine Arts in the U.S. Her designs have since been seen on stars such as Elizabeth Banks, Emma Roberts, and Kendall Jenner. Alazzouni’s influence on the Saudi fashion industry was recently highlighted when she was invited to take part in Prince Mohammed bin Salman’s Saudi Vision 2030 campaign. Alazzouni has been the art director for the Saudi Cancer Foundation and was a guest speaker at the Ted X Alfaisal University’s first event in Riyadh in 2011. She has more than 500,000 followers on Instagram. F O R B E S M I D D L E E A S T.CO M

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3 Honayda Serafi

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Brand: Honayda Category: Fashion Establishment: 2016 Headquarters: Lebanon Since launching her ready-to-wear clothing brand in 2016, Honayda Serafi has dressed international celebrities including Lupita Nyong’o, Priyanka Chopra, Shay Mitchell, Dove Cameron, and Angham, with her creations sold in nine boutiques across the Middle East, Europe, and the Americas. In response to the COVID-19 pandemic, Serafi launched a “Sketch&Give” initiative in May, which donated an outfit for each sketch shared on social media. In just 12 days, it recorded 2,152 sketches, 11,180 outfit donations, and raised $340,500 in funds. The mother-ofseven is a Parsons School of Design graduate, and is also an accomplished sculptor and poet.

4 Nora

Al Shaikh Brand: Nora Al Shaikh Category: Fashion Establishment: 2012

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Headquarters: Saudi Arabia Nora Al Shaikh launched her first luxury ready-to-wear line in 2012. Since then, her clothes have been showcased at trunk shows and retail events in New York and LA. She now plans to build an e-commerce platform that will allow her to sell directly to consumers. Her designs have been worn by celebrities including Fergie, Dove Cameron, and Julia Michaels. Her collections featured in Arab Fashion Week in 2019, and international media publications, such as the LA Times.

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Brand: Dana Alalami Jewelry & Auctions Establishment: 2015 Headquarters: Saudi Arabia & U.A.E. Dana Mohamad Al Alami is the co-founder and chairman of Dana Alalami Jewelry, which was established in 2015. The brand has been worn by Saudi royals such as Princess Ameerah Al-Taweel. Al Alami is also the co-founder and chairman of Dubai-based Dana Alalami Auctions, which is currently collaborating with Russia’s Alrosa to launch an auction of $100 million worth of large, rare diamonds. Al Alami is also a board member of the Council of Saudi Chambers, as well as the Jeddah Chamber of Commerce’s committee of precious metals and gems traders, and the young businesswomen committee. In 2019, Al Alami offered a 425 carat “legacy” diamond at the Future Investment Forum.

6 Nourah Al Faisal Brand: Nuun Jewels Category: Jewelry Establishment: 2014 Headquarters: France Nourah Al Faisal worked as a jewelry designer for 15 years before opening her own boutique, Nuun Jewels, in Paris’s luxurious shopping district Rue du Faubourg Saint-Honoré in 2014. She completed an apprenticeship in a workshop in Paris, and her designs now combine French designs with Arab culture. Al Faisal has since launched the ADHLAL platform in Riyadh to support the local design industry in Saudi Arabia.

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Category: Jewelry

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7 Shahd AlShehail Brand: Abadia Category: Fashion Establishment: 2017

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Headquarters: Saudi Arabia

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Shahd AlShehail, a Johns Hopkins University alum, and her aunt Naeema launched ethical luxury fashion label Abadia in 2017. It has since become known for its iconic Farwa—a menswear winter coat reimagined for the modern woman. Queen Rania of Jordan was spotted wearing the coat at her daughter’s graduation. AlShehail has promoted sustainability in the local fashion industry by launching Project JUST, an NGO challenging exploitative practices of fashion. The brand also has had a consistent presence at Paris Fashion Week. Last year, AlShehail has also been chosen to dress the Saudi delegation to the UN.

8 Muneera

Al Tamimi Brand: Tamashee Category: Footwear Establishment: 2013 Headquarters: U.A.E

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Muneera Al Tamimi co-founded high-end footwear brand Tamashee, in Dubai. The brand’s signature Arabian Gulf sandals have since been seen on local celebrities such as Ahlam Al Shamsi, and Bollywood stars such as Abishek Bachan. Tamashee’s first flagship store is set to open in Dubai later this year. According to Al Tamimi, the brand has ranked as the number one selling footwear brand in the Level Shoe District in Dubai Mall in 2014 and 2015. As part of the brand’s mission to support heritage, Muneera and her work partner Mohammed Kazim have introduced cultural trips around the Middle East in order to educate clients, as well as create a sustainable income for locals.

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10 Fatima Batook

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Brand: Studio55 & TIMA

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Category: Fitness and Fashion Establishment: 2015 and 2012 Headquarters: Saudi Arabia With over 15 years’ experience in the fitness industry, Fatima Batook launched fitness studio Studio55 in 2015, becoming the first licensed female fitness instructor in Saudi Arabia, following a two-year effort. She opened her first branch in Alkhobar, with a second branch in Jeddah opening two years later. In 2012, she also launched fitness and sports apparel brand TIMA, selling her products across Saudi Arabia, the U.A.E, Bahrain, and Kuwait, as well as global markets in Russia, Singapore, and Europe through online retail. Batook is also a board member of the Asharqia Young Businesswomen’s Executive Council, where she actively promotes entrepreneurship among young Saudi women.

9 Nour AlTamimi Brand: The Nou Project Category: Footwear Establishment: 2017 Headquarters: U.A.E & U.K.

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Nour AlTamimi’s Nou Project is an online store that showcases art from contemporary artists on limited edition sneakers. She launched the brand at Level Shoes in Dubai in 2017, and in 2019 moved it to the U.K. to target a new market. She presented the sneakers in the U.S. through a booth at Untitled Art Fair in Miami during Art Basel in 2017, as well as at The Face store in Nolita, New York. The Nou Project plans to expand its product range to include both sportswear and athleisure wear, and will focus more on sustainability, with AlTamimi recently introducing a new line of vegan sneakers. AlTamimi is a Tufts University Graduate and holds a master’s degree from Claremont Graduate University’s Drucker School of Management.

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• THOUGHT LEADERS • By Mashael Al-Zaid, data scientist at the Saudi Data and AI Authority

Leading In Innovation And Artificial Intelligence

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Accelerating innovation and AI requires heavy investment. Saudi Arabia has taken steps towards that, which started by announcing NEOM—the city of the future. The Saudi Venture Capital Company has also pledged $750 million to stimulate new startups in the kingdom. PIF has a record of investments, including one in invested in a Saudi-Japanese investment fund known as the Vision Fund. These investments will go beyond creating jobs for Saudi men and women. They will create opportunities to transfer global skills and expertise to the citizens of Saudi Arabia, which will encourage local innovation and manufacturing. On top of that, the Intellectual Property Authority was established to regulate this sector and encourage innovators, which plays a vital role in growing the economy, attracting investments in research and development, and raising the competitiveness index of the kingdom. In light of rapid development in the world, and the kingdom specifically, and its pursuit to excel among data-driven economies, the Saudi Data and Artificial Intelligence Authority—SDAIA—was established to keep pace with the rapid changes and provide an infrastructure that empowers decision-makers with access to data-driven insights. This has the potential to generate revenues and reduce government costs by more than $10 billion. The National Strategy for Data and Artificial Intelligence seeks to make the kingdom a model and incubator for AI in the world by creating regulations that encourages innovators. Not only that but Saudi Arabia is also enabling developing countries to adopt AI to support economic and development goals. The world is witnessing unprecedented changes that have made innovation based on advanced technologies such as AI a competitive advantage, prompting governments to think about how to excel and lead the future economy. Saudi Arabia is taking bold steps, and the kingdom’s vision and initiatives today will position it in an unrivaled place of strength in the future. NOVEMBER 2020

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Saudi’s Vision 2030 is a roadmap towards the goals of the kingdom that aims to diversify its economic base and guarantee its sustainability to enable its citizens to achieve their hopes in a vibrant society. The government has committed to providing the right environment to facilitate the journey towards creating a larger economy and contributing to the development of the world at all levels. This forward-looking step is similar to the one that occurred in 1933 when King Abdulaziz signed the concession agreement for oil exploration. This step made the kingdom one of the fastest-growing economies at that time, and one of the most important oil-producing and exporting countries in the world. Amidst the changes taking place and the advancement of technology, thinking in a new and different way is not anymore a luxury but a necessity. There is a growing interest in innovation based on modern technologies such as AI, which has become a priority for governments to maintain and expand their power globally . Although some governments differ in how they view this topic , there is a kind of global agreement on supporting the progress of AI, as its adoption could raise global GDP by up to $13 trillion by 2030, according to McKinsey estimates. In the context of enabling and encouraging innovation, Saudi Arabia is building an ecosystem that enables entrepreneurs. It has for example established the Small and Medium Enterprises Authority, which is responsible for supporting, developing, and nurturing this sector. The kingdom’s vision seeks to develop human capital, and in recent years training programs have been launched to educate young people in future skills and sciences. This reflects the Crown Prince’s words: “We have impressive, wonderful and honorable Saudi mindsets. Especially among the younger generation.” Attention can be drawn here to the role startups can play to work side-by-side with the government in training and empowering talent in emerging fields to contribute to building the future of their country.

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• FORBES LIFE • By Fouzia Azzab

As it continues on its path to becoming a significant international tourist destination, Saudi Arabia is recognizing the agricultural sector as being a key contributor for experiential tourism.

This year, with tourism being one of the hardest-hit industries due to the global pandemic, the World Tourism Organization has begun to promote “tourism and rural development.” Zurab Pololikashvili, Secretary-General of the UNWTO, sent a global message in which he highlighted the importance of rural tourism as a provider of opportunity and economic empowerment for all. Saudi Arabia is a rising powerhouse in tourism. The kingdom has also given priority to sustainable agricultural and rural developments, putting it in a good position to promote agricultural tourism within its economic and social plans. In 2019, Saudi launched a Sustainable Agricultural Rural Development Program for 2020-2026 worth $2.1 billion. The kingdom is working to revitalize the culture of sustainable agriculture and reimagine tourism beyond traditional concepts. Tourists can now enjoy a number of activities related to agricultural and rural life. The program also helps to develop farms and diversify their sources of income to ensure their sustainability. F O R B E S M I D D L E E A S T.CO M

I Date farms Saudi is one of the world’s second most significant date-producing countries, producing up to 17% of the world’s dates. The city of Hail has some of the most prominent date farms in the kingdom, producing “Hilwa Hail” dates and other varieties for which the region is famous. The Al-Qa’id Center, which hosts the annual “Dates and Family Festival,” is one of the most beautiful tourist landscapes in the region, with a strong agricultural production infrastructure. NOVEMBER 2020

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Saudi Arabia Bets On Sustainable Agricultural And Rural Development For Tourism

Work is currently underway to finalize the issuance of tourist agricultural licenses for 14 farms in Hail, according to the Director General of the Northern and Northwestern sector of the Ministry of Environment, Water and Agriculture Salman bin Jarallah Al-Sowayna. The agricultural tourism support program provides rural accommodation services while preserving the flora and fauna environment. These projects have a low impact on the natural environment and attract visitors from outside the region. There are more than four million palm trees in the Medina region, with an annual production of 189,000 tons of dates, according to the latest statistics issued by the General Authority for Statistics. In the Al-Ahsa governorate, date sales during the Sarm season in 2020 exceeded $933,000.

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I Rural tourism Agricultural tourism is one of the main attractions in the Asir Province, usually associated with visiting terraces and landscapes—one of the most beautiful aspects of rural life, especially in summer times. These terraces are home to barley, millet, white corn and other crops that grow in mountain areas. The Asir area is known for its outstanding beauty. Its large farms with modern agricultural methods are emerging as a major source of food security and tourism, with an abundant production of summer fruits, including apricots, pomegranates, grapes, peaches, apples, and oranges. F O R B E S M I D D L E E A S T.CO M

Domestic tourism in the Asir region encourages people to expand and develop unique qualitative tourism projects that are 100% launched by Saudi nationals. The locals are working on turning archaeological villages, castles and mountain farms into prominent landmarks. This contributes to raising the occupancy rate in a way that enhances local investment, develops a tourism and hospitality sector framework, and strengthens the presence of ancient heritage through modern programs. The Khairat Asir initiative launched by Prince Turki bin Talal bin Abdulaziz, the Governor of the Asir region, has helped in boosting agricultural tourism in the region. It aims to market local products that reflect the identity of the region dating back thousands of years, in addition to introducing visitors to the region’s most prominent aspects of agricultural production. Such initiatives will support farmers in all areas of marketing and production techniques, and provide agricultural advice and guidance to farmers and visitors. It will also shed light on other initiatives, agricultural loans, and government support. The governorate of Bisha is also famous for its “Sifri Dates Festival,” which attracts visitors from across the kingdom and the Arab Gulf states. It displays more than 60,000 tons of Sifri dates annually. Betting on new strategies and experiences, the region has also turned to planting roses and other aromatic plants, boasting some of the

largest farms in the kingdom. The rose farm located north of Abha covers an area of 250,000 square meters and grows more than 40 million roses per year. The farm also produces many aromatic products such as rose water, perfume, rose oil and other skincare products. The farm has a distillation plant for rose extracts, producing about 120,000 packages per year.

I Supporting agricultural projects Tourism farm projects greatly benefit from government support through Agricultural Development Fund loans, as well as free-of-charge technical and administrative support from the Ministry of Tourism and other related authorities. These loans contribute to the operational costs of farm facilities. Saudi’s Ministry of Environment, Water and Agriculture has launched an e-portal “Reef” to serve beneficiaries of a sustainable rural development program, enabling them to register and submit their data to obtain financial support that contributes to the development of their agricultural activities. According to the ministry, the “Reef” program aims to improve the rural agricultural sector, raise the standard of living for small farmers, increase efficiency and productivity, and improve their lifestyles. The portal receives requests from various sectors, including beekeepers, coffee makers, and rose, rain-fed crops and fruit farmers. It then offers direct financial support and other development programs. NOVEMBER 2020

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Best Tourist Destinations In Saudi Arabia FORBES LIFE

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Saudi Arabia has a cultural heritage dating back thousands of years, with many of the country’s sites registered as UNESCO World Heritage sites. Here are some of its most notable historical destinations.

Diriyah is the heart of Riyadh’s culture and heritage, and consists of several regions, including Al-Bujairi and Al-Tarif. Its ruins became a UNESCO heritage site in 2010. Signs of the nation’s birth are spread across Riyadh, with the Masmak Fort—a 150-year-old castle built from mud—standing tall between sites. Tourists should visit the old souks of Riyadh, where the historical Al-Zal market is located. The souks sell a variety of traditional handicrafts from woven carpets, to traditional clothes and antiques. “The end of the world” is a popular tourist destination where visitors can take in a breathtaking horizon, located 90 kilometers from Riyadh city. This is part of the vast slopes of Tuwaiq, extending more than 600 kilometers in the center of the kingdom. It was previously overlooking an old trade route used to cross the Arabian Peninsula from Yemen to the Levant.

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I Al-Zulfi Al-Zulfi is the largest city in a governorate located in the Najd region of Riyadh. It has several parks and other attractive places like Lake Al Kasr, Al Sabla Kindergarten, and the vinegar youth recreational park, with a mountainous eastern scene and sandy western view. Al-Zulfi is also an agricultural city, which has three famous valleys: Wadi Markh, Wadi Al-Nom, and Wadi Semnan. It has several historical monuments, including Saud Palace—one of the most important landmarks in the archaeological city with history dating back 243 years. It was established by Prince Saud in 1780.

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Image by Diriyah Gate Development Authority; Ad Diriyah / VisitSaudiAR Twitter; Al-Zulfi, Image credit @abdullh_alobadh; @VisitSaudiAR / Twitter

I Riyadh

@VisitSaudiAR / Twitter; AFZAL KHAN MAHEEN / Shutterstock.com; Nesru Markmedia / Shutterstock.com

I AlUla

I Jeddah

AlUla covers 22,561 square kilometers and includes a fertile oasis, towering sandstone mountains, and ancient cultural heritage sites dating back thousands of years. Hegra is one of the most important archaeological sites there, featuring the tombs of Lahyan bin Koza, Jabal Ithlib, Al-Diwan, Jabal Al-Ahmar and Al-Well, and the ancient city of Dadan. A team of archaeologists is working on extensive excavations in Dadan to explore this mysterious period in Al-Ula's human history, which dates back more than 7,000 years.

Jeddah is the gateway to Mecca and is steeped in ancient Islamic history. Visitors can feel its charm and history when they visit the “Al-Balad” area, which was built in the seventh century AD. Meticulous restorations have been carried out on the houses to preserve the originality of the region. The corniche is a park of more than 30 kilometers that embraces the waters of the Red Sea. It has several restaurants, entertainment places, and parks. Exhibitions in Jeddah cater to all tastes of modern art. The Jeddah Sculpture Museum is located on the corniche, and includes a collection of pieces dedicated to the bride of the Red Sea. The museum includes a wide range of antiquities dating back to pre-Islamic times.

I Taif Taif is also know as the City of Roses and the Bride of Saudi Resorts, due to its moderate climate in the summer season. It is known for its museums, parks, popular markets, fruit, rose plantations, aromatic flowers, and cultural destinations such as Okaz Market, which serves as a forum for intellectuals, poets and artists. The Shubra Palace houses the Taif Regional Museum and the “Al Hada Cable Car,” which operates from the highest mountains at the summit of Al Hada, down to the village and entertainment resort of Al Kar. F O R B E S M I D D L E E A S T.CO M

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I Cultural attractions

I Abha

Aseer is located in the south of the kingdom between the mountains. Visitors can enjoy historical sites and visit the highest mountain peak in the Arabian Peninsula at Al Souda Park, at a height of more than 3,000 meters. It is covered with dense forest. The park is also equipped with cable cars to connect visitors to the Al-Ous Park, where the museum, the heritage library, and the ancient palaces are located.

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I Tourist attractions AFZAL KHAN MAHEEN / Shutterstock.com; Nesru Markmedia / Shutterstock.com

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The eastern region is home to many historic, economic and cultural heritage sites. The city of Dammam is home to cultural monuments and is the center of the oil and gas industry. The King Abdulaziz Center for World Culture, Ithraa, is a diverse destination for arts, science, literature and innovation. The city of Al-Ahsa is famous for its picturesque green lands that are home to one of the largest oases in the world, as well as historic sites dating back to the Stone Age. The tops of the limestone hills offer stunning views of the surrounding area from 200 meters above sea level, exploring the maze of caves and paths dug into the rock. Al-Ahsa includes Jawatha Mosque, built in the seventh Hijri year, and Ibrahim Palace, built during the reign of the first Saudi state. Artifacts and various pictures are displayed in the Palace Museum.

The Al-Baha region is an open historical museum on top of a mountain of white rocks, dating back more than 400 years, and includes the Raghadan Forest Park, a rugged natural area that has become one of the most important tourist attractions in the region. It is also connected to the village of Dhi Ain through roads and winding valleys. F O R B E S M I D D L E E A S T.CO M

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