Saudi Arabia
Quarterly magazine on-line, November / January 2018
Special Edition
CEO of Vger srl, Mr. Ivan Magon
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Sommary 10 Saudi Arabia, a country still to be discovered...
32 Electronics and IT, the perfect match...
18 Saudi Vision 2030: technical details
36 Saudia, welcome to your world! 40 Milan, a city to invest in...
27 Welcome to NEOM 30 THE PROGRESS TIME Event
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THE PROGRESS TIME Quarterly magazine on-line, November/January 2018 Aut.Trib. di Arezzo n. 4/13RS del23/07/2013 Aut. Modifiche dal Tribunale di Arezzo del 02/07/2015 EDITOR Mr. Ivan De Stefano EDITOR IN CHIEF Mrs. Barbara Ganetti GRAPHIC & WEB DESIGNER Mr. Tosi Lucio TRASLATOR Ms. Giulia Ruzzenenti QUESTO NUMERO È STATO FINITO DI IMPAGINARE IL 02/12/2017 CONTATTI editore@theprogresstime.com - redazione@theprogresstime.com
Editorial by Barbara Ganetti
IItalian-Saudi economic ties continue to live an excellent time for our national interests. As a matter of fact, the Kingdom is widely open to intensify the economic relations with Italy. For the diversification path of the economy and to prepare itself to sustain the demand of a growing (in number and in complexity) population, the Kingdom needs a huge quantity of goods and services. The Italian investments in the Kingdom focus on traditional power sectors, petrochemical, infrastructures and defense; the areas with the best growth perspectives and supposing future investments for Italy are certainly healthcare, renewable energies, electronics, chemical and plastic, infrastructures – both in educational and in healthcare fields – defense and the water sector. The Italian know how and the Italian high technology machineries continue to represent a reference point for diverse Saudi industry sectors, but also
their exportations are expanding together with the growth of the Saudi economy. In this publication that will close the current year, developed in collaboration with the Embassy of the Kingdom of Saudi Arabia in Italy, we thank H.E. Min. Pl. Faisal Hanef al Kahtani for the kindly concession to answer to our questions, and we would like to give the readers a 360-degrees panorama of the Saudi Kingdom, facing the important economic and cultural changes for which they are preparing. One of these changes is absolutely the new development strategy Saudi Vision 2030, that foresees important investments for the sovereign fund and structural reforms, to encourage foreign investments, to enhance tourism and the enormous geographical and environmental patrimony of the country. We hope you will enjoy the read and we wish you a Merry Christmas and a Happy New Year.
Saudi Arabia, a country still to be discovered... By Ivan De Stefano
After a four-year-period of negative growth for the commercial exchange between Italy and Saudi Arabia (-13,1% in 2013; -9,8% in 2014; -6,0% in 2015 and -20,2% in 2016), the data about the first semester of 2017 show a clear inversion of the tendency, with a growth of 17% (from 3,2 billion euros in the first semester of 2016 to 3,8 billion in the first semester of 2017).
H.E. Min. Pl. Faisal Hanef al Kahtani The Kingdom of Saudi Arabia has planned many considerable changes, one of those is undoubtedly the new development strategy “Saudi Vision 2030” that will foresee important investments from the sovereign fund and structural reforms to increase foreign investments; but this is not all. Also under the cultural aspect the changes are significant: we would remind you to the news issued some months ago about the permission for the Saudi
women to drive, a decision that marks a great cultural openness of the Saudi Kingdom. For the final updates concerning the regulatory rules of this promulgation we refer to June 2018, the moment in which they will become effective. Moreover, the projects activated by the Kingdom will involve also the tourism, promoting the huge geographic and environmental heritage of the country, rich in archeological patrimony. In this special edition, in collaboration with the Embassy of the Kingdom of Saudi Arabia in Italy, we will analyze in detail the projects and the structural reforms carried out by the Kingdom, the trade opportunities for the foreign companies interested in the Saudi market, with a specific attention to the Italian companies, leaders among the partners countries whose commercial relations are expected as strongly-increased. In order to examine the debated topics, we are glad for the kindly permission of H.E. Min. Pl. Faisal Hanef al Kahtani, Charge’ d’Affairs of the Kingdom of Saudi Arabia to answer to our questions.
H.E. could you explain us the new development strategy, named Saudi Vision 2030, adopted by your country? Saudi Vision 2030, masterminded by Crown Prince HRH Prince Mohammed bin Salman, is the blueprint for the Kingdom’s ambitious transformation plan, based on three pillars that represent the Kingdom’s unique competitive advantages, namely the KSA’s role as heart of Arab and Islamic worlds, the Kingdom’s investment power, and the Saudi Arabia’s strategic location to became a driver of international trade connecting three continents: Africa, Asia and Europe. Vision 2030 is built around three related themes which embrace all sectors of Saudi society: a vibrant society, a thriving economy and an ambitious nation. This first theme refers to the Kingdom firm belief that the real wealth of Saudi Arabia lies in its people and in the potential of its younger generation. Within this theme, can be framed all the Vision 2030’s strategic goals aimed to promote and reinvigorate social development, improving the quality of life of our citizens
and build the Kingdom’s future on our strong Islamic faith and national unity. In this regard, I can mention the goal of increasing household spending on cultural and entertainment from the current level of 2.9% to 6% by 2030 as the aim of increasing the average life expectancy from 74 years to 80 years or the goal of developing our capacity to welcome Umrah visitors from 8 million to 30 million every year. A practical example of recent steps adopted by the Kingdom in line with this Vision 2030’s theme for a vibrant and inclusive society, is the landmark decision that will be allow Saudi women for the first time into major sports stadiums in its three main cities as of early next year, that follows King Salman’s recent historic announcement that women will be allowed to drive from June 2018. This decision will empower Saudi women to play a great role in the Saudi economy, in line with the Vision’s strategic goal which aim to increase women’s participation in the workforce in Saudi Arabia from 22% to 30% by 2030. Women empowerment is also critical to reach the strategic objectives under the second the-
me of Vision 2030, a thriving economy, which includes strategic goals set by the Kingdom to provide opportunities for all, such as developing an education system aligned with market needs and creating economic opportunities for the entrepreneurs, the small enterprises as well as the large corporations. Therefore, KSA is developing investment tools to unlock our promising economic sectors and diversify its economy. Saudi Arabia aimed at raising the share of non-oil exports in non-oil GDP to 50%. We are also investing to create job opportunities and to lower the rate of unemployment from 11.6% to 7%. The Kingdom is acting to grow its economy and improve the quality of services, by privatizing some government services and increasing the private sector’s contribution, which is supposed to increase up to the 65% of GDP by 2030. We are also improving the business environment, attracting the finest talent and the best investments globally, and leveraging our unique strategic location in connecting three continents. Vision’s third theme, an ambitious nation, is built on an effective, transparent, accountable, enabling and high-performing government. Among the goals set under this theme is the Raising of the Kingdom’s ranking on the EGovernment Survey Index from our current position of 36 to be among the top five nations as well as the aim of rally one million volunteers per year. In order to enable an effective implementation, Vision was cascaded into 96 strategic objectives. New entities, such as the Council for Economic Development (CEDA), have been created while existing entities have been merged and/or restructured. In addition, on April 2017, CEDA identified a list of 12 programs, called Vision Realization Programs (VRP’s), to implement the Vision. Among them: The Housing Program, Lifestyle Improvement Program, National Transformation Program and the Public Investment Fund’s Program, which was recently launched during the Future Investment Initiatives (FFI) which took place in Riyadh in October 2017.
In these scenarios, what is the role of Public Investment Fund – PIF – for Saudi economy? Public Investment Fund (PIF) plays a key role in achieving a post-oil scenario. Over the past two years, the PIF Board – chaired by HRH Prince Mohammad bin Salman Al Saud, Crown Prince, Deputy Prime Minister, and Chairman of The Council of Economic and Development Affairs (CEDA) – has undertaken a wide range of actions to drive forward the transformation of PIF as it develops into one of the world’s leading and most impactful sovereign wealth funds. These activities include developing expertise, whilst undertaking major reforms to the Fund’s investment, governance, legal, risk and compliance and finance functions. As mentioned before, during the FII has been launched the PIF Program (2018-2020), one of the Vision Realization Programs (VRPs). The four key objectives underpinning the Program include: growing and maximizing PIF assets; launching new sectors; localizing advanced technologies and knowledge and building strategic economic partnerships. The newly-launched PIF Program outlines how the Fund aims to complement private sector development in the Kingdom through its new domestic investment pools, split between the Fund’s Saudi Holdings, Saudi Sector Development, Saudi Real Estate & Infrastructure Development, and Saudi Giga-Projects pools. The scale of ambition attached to the Fund’s domestic pools is evidenced by the announcement of the NEOM Project, the Red Sea Project, the Al Qidiya Project, as well as the establishment of nine companies focused on launching promising new sectors in the Kingdom, including the Saudi Arabian Military Industries company (SAMI), the Fund of Funds, and the Saudi Real Estate Refinancing Company. The PIF Program, which is underpinned by 30 separate initiatives, will see the Fund’s Asset Under Management (AUM) increase to SAR 1.5 trillion (over $400 billion) by 2020,
creating 20,000 direct domestic jobs, more than half of which are high-skilled roles, and 256,000 construction jobs, which will increase PIF’s contribution to real GDP from 4.4% to 6.3%, and increase the share of local content to SAR 50 billion (over $13 billion). At home, the PIF Program will unlock value in the domestic portfolio and drive forward strategic and sustainable diversification by creating opportunities in a range of different industries. Internationally, the Fund has begun to invest in some of the world’s most innovative companies and formed partnerships that will support long-term income diversification and ensure Saudi Arabia at the forefront of emerging trends. Your Government has undertaken some actions to attract foreign investments and to simplify the authorization and the administration procedures, what are the investment opportunities for Italian entrepreneurs? The latest data confirm a clear recovery of the trade between Italy and your country, with a raise of 17%; what are the new opportunities for Italian companies interested in the Saudi market? More spe-
cifically, what are the more requested sectors? The Kingdom is launching important measures to facilitate the attraction of international investments. There are many reasons for investing in the strategic sectors where Saudi Arabia has great comparative advantages. Foreign–owned companies, for example, enjoy all the benefits, incentives, guarantees, and support offered to Saudi-owned companies. These include: 20% tax on corporate profits, with any losses carried forward indefinitely to offset future taxes; no personal income tax, no value added tax, no sales tax, no land tax and no property tax; full repatriation of capital, profit, and dividends allowed, subject to a 5% withholding tax; minimal restrictions on currency conversion, exchanges and transfers; tax exemption on earnings from exports; tax credits on R&D investments; the government also grants significant training and employment-related tax concessions, up to 50% of either training cost or payroll, to companies operating in any of the six less developed regions: Hail, Jizan, Najran, Al Baha, Al Jouf, and the Northern Region. In line with the Vision 2030 initiatives to revitalize the business
environment, fuel investments and accelerate economic development in the Kingdom, the Saudi Justice Ministry has officially launched the commercial courts last October, almost a month after they began operations in the country’s three major cities – Riyadh, Jeddah and Dammam. These specialized commercial courts will achieve a quantum shift in the speed of adjudication of commercial disputes and the quality of the judicial output. Justice Ministry’s initiatives to digitize its operations and services, will cut bureaucratic procedures by some 45% and shortened the period for execution of judicial orders from two months to 72 hours by activating the electronic linking system that connects all entities involved in that procedure. Let me also remark that Saudi Arabia is now regularly highlighted as one of the best places in the world to do business. The World Bank Group’s recent report on the Kingdom showed unprecedented progresses in indicators of the ease of doing business, after the implementation of many reforms and procedures that have contributed to improving the business and investment environment, as well as investors confidence. The report also referred to the Kingdom’s ranking among the top 20 reformist countries in the world, and the second among the best high-income countries and G20 countries in terms of implementing reforms to improve the business environment. The Saudi Government will continue taking a proactive approach in encouraging foreign investments and in facilitating access to trading and investing in the stock markets and to welcome foreign technology. With regards to bilateral relations, Saudi-Italian economic ties continue to go through a favorable time and the reform process implemented by the Saudi government is bound to have particularly positive consequences for Italy’s national interests. Italy is one of the major commercial partners of the Kingdom. Italy is the 3rd European partner country for imports to the Kingdom, and the 5th European partner country for exports, ranking among the first 11 commercial partners of the King-
dom. The bilateral trade reached € 6.7 billion in 2016. With regards to Italian investments in Saudi Arabia, they are so far concentrated in the traditional petrochemical, infrastructure and defense sectors. In the country, there are currently about 70 companies operating directly or through joint ventures with Saudi partners, in particular in the petrochemical, industrial plant building, infrastructure and construction sectors, where they have been assigned with primary contracts in the infrastructure development process (railways, underground, etc.). In addition to these, promising sectors in the Kingdom with high growth prospects and which can offer interesting opportunities for Italian investors are the health sector, the renewable energies (especially for wind and solar projects), the mining and the tourism sectors. Regarding the petrochemical, the government is fostering different productions and growth of this sector through greater investments, less restrictive regulations, incentives scheme (energy and low-priced raw materials and advanced industrial infrastructures) with the aim of making the sector more attractive for international investors. The infrastructures and constructions sector is, as well, a central sector of the Saudi economy. Saudi Arabia has the largest construction market in the Middle East and has recorded an average growth of 5-7% per annum in recent years. In 2016, the Saudi government allocated € 10.3 billion for the construction of new bridges, the expansion of ports and airports and the construction of new railway lines (including the Saudi Landbridge Project, which will connect the cities of Jeddah - RiadDammam) and metropolitan (in the cities of Jeddah, Mecca, Medina and Riad). The capital’s subway will have six lines and 85 stations for a total length of 177 kilometers; among the consortium of companies that is working on the construction of line 3 of the subway, there are the Italian companies Ansaldo STS and Salini Impregilo. In the budget 2017, the Government allocated € 13 billion for the im-
provement of roads, ports, railways, airports and postal services and the development of Jubail, Yanbu and Razmic industrial cities. The government intends to privatize the country’s 27 airports by 2020, with a view to improving their management and efficiency, and to provide them with ever-higher standard service providers. As a first step, in view of the privatization of the individual companies, the competent authorities intend to transfer the ownership of all the stakes to the Public Investment Fund. The government intends to surrender control through a single transaction of the Saudi-based airline and the low-cost carrier Flyadeal. In order to encourage the participation of foreign companies in the privatization of the sector, the Saudi authorities have established that local investors may hold a maximum of 25% in the mainstream of the country and have introduced the possibility for foreign investors to invest in new airport companies even without the support of local partners. With regards to the investment opportuni-
ties offered by health sector, the Saudi government, in addition to the resources already made available by the State to develop the sector, is presenting a series of initiatives to encourage private investments in the health sector. Among the most important projects the construction of various medical cities, including the largest King Abdullah Medical City in Dammam; the King Abdullah Medical City in the province of Makkah; the King Faisal Medical City in the city of Abha, opening in 2021. The privatization of health services remains at the top of government interventions aimed at reducing public spending and introducing international best practices with the aim of increasing private sector contributions, from 25% in 2015 to 35% by 2020, with the number of authorized medical clinics ranging from 40 to 100. A new growing sector in the Kingdom is the renewable energy, which is expected to expand until the new renewable energy program (NREP) can reach its target of 9.5 GW of renewable energy by 2023. Saudi Arabia’s rene-
wable program involves investments between $30 billion and $50 billion by 2023. As remarked by H.E. Khalid Al Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia and chairman of Saudi Aramco during the recent Future Investment Initiative, in the next 6 years, KSA will produce about 10% of power from renewable resource and this is only phase one of the ambitious program. In this context - having long experience and a European excellence on clean energy production - Italy can play a leading role in Saudi Arabia by providing country with innovative solutions to achieve energy efficiency, knowhow to develop and manage industry projects
and low-cost solutions to achieve and maintain high quality standards. There are important Italian companies currently working in the Kingdom in this sector as EPC and O&M Contractor or which are participated by Saudi companies. This partnership is expected to continue and to growth parallel to the increasing importance of the solar energy sector in KSA. Extremely promising is also the mining industry, considering that Saudi Arabia is among the world’s major producers of aluminum, bauxite, gaseous and phosphate, and is aiming to expand production from 17% to almost 25%, $ 9 billion by 2020.
Another emerging sector in the Kingdom is tourism. The Kingdom plans to start issuing tourist visas soon and is expected to give a boost to the tourism industry. The tourism sector has been earmarked by the government as a key driver for growth in the Kingdom’s Vision 2030 plan to diversify the economy away from oil. Some 900,000 Saudis work in the travel and tourism sector. Saudi Arabia has welcomed estimated 18 million visitors last year, most of whom came for the Hajj and Umrah pilgrimages and is working to serve 30 million Umrah visitors by 2030. The Kingdom has many tourist attractions, thanks to its land, history, folklore and cultural heritage. Saudi Arabia hosts some important archaeological and historic sites, including Madain Saleh in the northwest, built by the ancient Nabateans, and Diriyah, a small historic city about 20 kilometers from the capital, Riyadh. Both are UNESCO World Heritage sites. The First Saudi Archaeology Convention, which has been concluded in November 2017 in Riyadh, underscored the importance of the Kingdom as an archaeological treasure-trove and highlighted some of the most significant discoveries that have been made in the country so far.
These startling discoveries include a 17thcentury ship found in the depths of 45 meters in the Red Sea. Heaps of pottery and jars, bearing resemblance to those used by pilgrims in Makkah, discovered by a joint Saudi-Italian team. In particular, Dumat Al Jandal is an ancient city of ruins, which represents an example of fruitful cooperation in the archeological field between Saudi Arabia and Italy. Saudi Arabia has also announced some major tourist projects as part of Vision 2030, including the Red Sea Project, a coastal lagoon covering some 50 untouched islands stretching along more than 150 kilometers unpopulated coastline. The project will comprise exquisite luxury resorts, underwater nature reserves and dormant volcanos within an area of 34,000 square kilometers. Italy, with its excellent expertise in the tourism sector, can certainly be an important partner of the Kingdom to boost the Saudi tourism industry. Let me conclude by highlighting that on December 4th is going to take place in Rome the XI session of the Joint Commission between the Kingdom and the Italian Republic, which I am sure will reaffirm the determination of both countries to further intensify their economic ties and bilateral relation in the field of business and investment.
Saudi Vision 2030: technical details In these articles from the Embassy of the Kingdom of Saudi Arabia in Italy, you could analyze the technical aspects related to the topics of the previous interview, kindly granted by H.E. Min. Pl. Faisal Hanef al Kathani.
Recent Pif’s initiatives and investments
Entertainment Investment company
Saudi Arabia aims to achieve long-term financial returns from its domestic and international investments and is working to develop the Kingdom’s Vision 2030 strategy to diversify the Saudi Economy. In order to apply revenue earned from the IPO of Aramco to sectors that will benefit from large-scale promotion, the Government of Saudi Arabia has identified the PIF as a conduit for investment flows. PIF was originally established in 1971 to invest in commercial projects. In March 2015, the Council of Ministers issued a decree to transfer oversight of the Public Investment Fund to the Council of Economic and Development Affairs (CEDA). Fund’s Strategy and mandate have been redefined in line with Saudi Vision 2030 to help achieve Saudi Arabia’s vision of a sustainable and diversified economy. Vision 2030 aims to increase assets held by the PIF from SR 600 billion to over 7 trillion within the span of less than two decades and invest 50 percent of PIF funds abroad. Returns on investments, among others, will help the Kingdom meet its goal of reducing oil dependence by 2020. Among the largest PIF’s investments since the release of Vision 2030, it is worth to remember the announcement of a $35 billion injection into the Silicon Valley giant Uber in June 2016 and Saudi-Japanese Soft Bank Group projected to grow as large as $100 billion, positioning it as one of the world’s largest private equity investors. PIF is set to contribute up to $45billion to the Softbank Vision Fund.
The company, which will have an initial capitalization of SAR 10 billion, will play an active investment role in various areas of the entertainment sector, and will seek to attract strategic partnerships to build the eco-system within the Kingdom. Additionally, the company will expand the scope and variety of entertainment offerings, according to the latest international standards. The company’s efforts will enable the development of and provide incentives for the entertainment sector, as well as building local capabilities within the Kingdom. The company is planning to invest in several entertainment projects, which include an entertainment complex that will be launched by 2019. The company’s establishment is consistent with the ambitions within Vision 2030 to increase the Kingdom’s cultural and entertainment offering, to create new employment opportunities, and to make use of the wealth of talent and energy among Saudi youth. By the end of 2030, the company’s projects aim to serve more than 50 million visitors annually and create more than 22,000 jobs in the Kingdom, which will contribute around 8 billion SAR to GDP. The new company will form a central pillar of the Kingdom’s diverse entertainment sector, providing new investment capital to support the sector’s growth and the diversification of the Saudi economy over the short and longterm. The company will seek to localize the large
amount of spending on entertainment outside the Kingdom, in addition to promoting the entertainment sector’s role in diversifying revenue streams.
Saudi electricity forum 2017 The organization of Saudi Electricity Forum by the Ministry of Energy, Industry and Mineral Resources comes as an extension to the Saudi Water and Electricity Forum, which the (former) Ministry of Water and Electricity consistently organized annually since 2007. This Forum and its associated Exhibition are considered one of the most important events in the field of electricity in the Kingdom. Specialists from the Kingdom and all over the world
attend and give speeches in this Forum, and it is participated in by most of the local and international companies operating in this field. Therefore, it represents an opportunity for senior officials, experts and investors to exchange experiences and enrich knowledge in the field of electricity, and keeping abreast of the latest technologies and developments; in addition, the Forum is important in order to identify investment opportunities in the Saudi market, within the framework of the Saudi Vision 2030. A major international Exhibition is associated with the Forum, it provides great opportunities for the local and international companies to directly market their innovative technologies and expertise to decision-makers, participants, and
visitors. Also, it is a good chance to conduct meetings with companies, businessmen, and officials during the event. The importance of the Forum and its associated Exhibition is further assured as it coincides with the increasing work and developments that are being witnessed by the KSA, in the Electricity Sector in general, and electrical power in particular. In addition, it allows to increase the installed power capacity and to improve the efficiency of supply and demand, as well to reduce consumption and to diversify the resources by utilizing renewable and atomic energy.
Kingdom renewable energy summit 2017 The Kingdom of Saudi Arabia’s National Renewable Energy Program plays a very vital role in the country’s vision to generate clean energy and has indeed captured the attention of the global solar industry since the beginning of 2017. With 9.5 gigawatts (GW) of renewable energy capacity to be achieved by 2023, the next six years will witness major transformation across the kingdom’s power sector. The Renewa-
ble Energy Project Development Office (REPDO) recently shortlisted 27 companies for its Solar Projects and 24 companies for its Wind Projects out of more than 120 companies that submitted statements of qualification for Round 1 comprising of 300 MW solar power projects and 400 MW wind power projects, for which tenders planned to be awarded last September. Saudi Arabia presents a sizable market where up to $50 billion will be invested on renewable energy development projects by 2023. The government has also increased its budget expenditure for 2017 by 8%, taking it up to $237 billion. Hydrocarbons would remain a prime element in the energy mix in 2023, by an estimation of 60 GW. This will also be supported by nuclear energy with a generation capacity of 17.6 GW, solar at 41 GW, of which 16 GW will be generated using photovoltaic cells and the balance of 25GW by concentrated solar power, wind at 9GW, waste-to-energy at 3GW and geothermal at 1GW. This two-days platform has been developed to provide all the participating organizations with an exclusive insight into the Kingdom’s Renewable Energy Market. This summit provided all the participating organizations with an excellent opportunity
Italian Minister of Economy and Finance, Mr. Pier Carlo Padoan
Crown Prince Mohammed bin Salman at the FFI
to meet, network, exchange ideas and came up with real-time solutions to some of the region’s most pressing issues.
Asia Energy Efficiency Conference In recognition of the rising importance of energy efficiency, the Ministry of Energy, Industry and Mineral Resources of Saudi Arabia, in collaboration with the Ministry of Economy, Trade and Industry of Japan (METI) and the International Energy Forum (IEF) organized the “Asia Energy Efficiency Conference and Expo”. The event provided an exceptional platform for knowledge sharing in the form of lessons learned, best practices, and case studies aiming towards providing the industry with the latest technologies and advancements in different specialties related to energy efficiency. With more than 35 Asian and G20 countries, Asia Energy Efficiency Conference and Expo (AEECE) has been a significant platform for international dialogue and cooperation that has brought world leaders, policy makers, experts, business leaders and academics together to share knowledge and expertise and discuss is-
sues related to energy efficiency in both supply and demand sides. The conference featured a series of events, panel discussions and an exhibition. Objectives of the event: - Address the world’s pressing issues in rising energy consumption and discuss the scale of energy efficiency potential in key energy consuming sectors; Accelerate the global adoption of energy efficiency and sustainable development; - Encourage the dialogue between broad industry stakeholders to strengthen strategic partnerships; - Promote solutions to reduce Green House Gas (GHG) emissions and other harmful impacts. - Advance innovative and new energy efficiency technologies; - Empower the young generations and entrepreneurs.
Future investment initiative The inaugural edition of the Future Investment Initiative (FII), an exclusive global business and investment forum hosted by the Public Investment Fund, took place in Riyadh from 24th to 26th October 2017. The FII has been the first of its kind, bringing together the most visionary, innovative and renowned leaders from
government, business and global investment to discuss the most exciting investment opportunities of our time. Hosted under the patronage of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al-Saud, and the leadership of His Royal Highness Prince Mohammad bin Salman bin Abdulaziz Al-Saud, Crown Prince, Deputy Prime Minister, Chairman of the Council of Economic and Development Affairs (CEDA) and Chairman of the Public Investment Fund, this initiative presented an opportunity to explore the interconnected investment opportunities being created by the Kingdom of Saudi Arabia’s Vision 2030 — and what will become the world’s most powerful investment fund. Global CEOs, together with leading experts and public officials, took part in a wide range of discussions during the FII, including a highprofile Summit on Artificial Intelligence and Robotics on Wednesday 25 October. The discussions happened after SoftBank, alongside PIF, announced the creation of the SoftBank Vision Fund. The US $ 100 illion fund is the world’s largest technology fund, and has made robotics and AI a key investment focus. At the conference, Masayoshi Son of SoftBank highlighted the strategic importance of investing in technology. The summit covered vital issues such as identifying which industries will be transformed most by artificial intelligence and how societies can provide smooth transformations for workers disadvantaged by the next waves of technological disruption. Speakers also highlighted new opportunities and partnerships for global investors. The summit has attracted influential and inspiring leaders from around the globe. Among the invited speaker is the Italian Minister of Economy and Finance, Pier Carlo Padoan, who participated into the session: “The Visible Hand: What Policies Can Drive Growth and Prevent the Next Financial Crisis?”. The Honorable Bill Morneau, Minister of Finance, Canada, H.E. Ahmed Bin Mohammed Al- Khalifa, Minister of Finance, Ministry of Finance, Bahrain and the CNBC’s anchor
Hadley Gamble also participated into this session. Other experts from the fields of robotics, digital healthcare, artificial intelligence and nanotechnology have been featured in additionalin-depth discussions. The Kingdom of Saudi Arabia is on a clear and defined path in respect to the implementation and advancement of technology. The theme of technological change complements PIF’s investment strategy.
New jeddah downtown On 27th September 2017, the Public Investment Fund (PIF) has announced it will lead the redevelopment of Jeddah’s waterfront corniche, creating a unique tourist, residential and commercial destination, to become the “New Jeddah Downtown”. The project, which will contribute SAR 18 billion of investment over 10 years as well as 36,000 new jobs, aims to create a distinctive and attractive environment to support Jeddah’s ambition of becoming one of the world’s top 100 cities. The project will include spaces for entertainment, shopping, and commercial activities, which are accessible for both residents and visitors. In total, the project aims to deliver over 12,000 housing units to accommodate 58,000 new residents. The project will take place across a 5 million square meter development site that is currently occupied by the Ministry of Defense and its subsidiaries on Jeddah waterfront, all of which will be relocated to a new site. The project site will be divided into six main sections, including new homes; new mu-
seums, and cultural and social centers; areas for business and innovation; gardens, amusement parks and sports facilities; hotels and hospitality facilities; retail spaces; as well as coastal areas for seaside activities, and walking routes along the private boat and yacht pier. In total, residential will comprise 42% of the new development, with 35 % dedicated to entertainment and retail areas, 12% to office space, and 11% to new hotel and hospitality facilities. The project is in line with Vision 2030 objectives to develop tourism sites in accordance with the highest international standards and provide investment opportunities that contribute to the development of the private sector. Initial preparation works are currently underway, with construction due to start in 2019. The first phase of the project is anticipated to launch in the final quarter of 2022.
Rou’a al haram On 2nd October 2017, the PIF has announced it is preparing to launch Rou’a Al Haram, a development company set to increase capacity for pilgrims and visitors to the Grand Holy Mosque performing Hajj or Umrah. Rou’a Al Haram will act as a catalyst for developing the areas around the holy sites and raising the quality of services in the local hospitality sector. The company’s establishment is in line with Vision 2030, which aims to provide an opportunity for the largest possible number of Muslims to perform Hajj and Umrah, and to
enrich and deepen their experience through the development of the two Holy Mosques. The number of people visiting Makkah is expected to reach more than 30 million by 2030. The first phase of the company’s projects will cover an area of 854,000 square meters, delivering 115 buildings of various architectural designs. 70,000 new hotel rooms will enable the site to receive 310,000 visitors per day. In addition, the first phase will see the development of around 9,000 residential units, 360,000 square meters of commercial space and prayer areas designated for more than 400,000 worshipers. The project will take place only 1,430 meters away from the Holy Kaaba. Rou’a Al Haram will raise the level of development in the areas surrounding the Grand Holy Mosque, making it among the best examples of development worldwide. In addition, it will support job creation and investment as part of a wider plan to diversify the national economy. Initial preparation works are currently underway, with construction due to start in 2018. The first phase of the project is anticipated to launch in 2024. The projects will create around 160,000 job opportunities by 2030, with an estimated annual contribution to GDP of SAR 7 billion. Initial preparation works are currently underway, with construction due to start in 2018.
Rou’a al madinah On 2nd October 2017, the Public Investment
Fund (PIF) has announced the establishment of Rou’a Al Madinah, a company that will deliver projects designed to increase capacity for pilgrims and visitors to the Prophet’s Mosque, whilst also enriching spiritual and cultural experiences across the holy city of Al Madinah. The company’s establishment is in line with Vision 2030, which aims to provide an opportunity for the largest possible number of Muslims to perform Hajj and Umrah, and to enrich and deepen their experience through the development of the two Holy Mosques. Preliminary estimates indicate that the total number of annual visitors to Al Madinah will increase to 23 million by 2030. The company aims to develop a 1.3 million square meter site no more than 1,000 meters away from the east wing of the Prophet’s Mosque. The project will see the development of 500 new housing units and 80,000 hotel rooms, increasing hotel capacity to receive 240,000 guests per day, in addition to increasing the number of prayer areas to accommodate 200,000 worshipers per day. The company’s activities will include the development of hotel, commercial and residential projects, as well as the development of cultural centers and museums to enrich Al Madinah’s religious, cultural and historical offerings. The company will broaden opportu-
nities for investment and private sector participation through the development of strategic partnerships. The project will also take into consideration the sacred nature of the Prophet’s Mosque, and create a comprehensive system for pedestrian passages separated from the movement of vehicles, as well as update the public transport stations at the end of the pedestrian passages. The projects will create around 200,000 job opportunities, with an estimated annual contribution to GDP of SAR 7 billion. Initial preparation works are currently underway, with construction due to start in 2018. The first phase of the project is anticipated to launch in 2023.
Small medium-size authority (sme’s)
On 9th October 2017, the Public Investment Fund (PIF) has announced the establishment of the Fund of Funds, a new investment vehicle designed to provide small and medium- sized enterprises (SMEs) with access to capital by investing in venture capital and private equity funds targeting the SME sector. The Fund of Funds will also support the creation
of a thriving private equity and venture capital ecosystem in the Kingdom. The Fund will empower the private sector and increase its contribution to national GDP by encouraging venture capital and private equity investments. With capital of SAR 4 billion, the Fund is aligned with the Vision 2030 objective of facilitating private sector growth and supporting the development of SMEs in creating job opportunities, promoting innovation, and increasing exports as per the commercial bylaws, to support and encourage investment in SMEs. The Fund of Funds’ vital role will be reflected in its contributions to national GDP, estimated to be around 400 million SAR by the end of 2020, and the provision of more than 2,600 jobs. Its contribution to GDP is expected to increase to 8.6 billion SAR by the end of 2027, creating around 58,000 jobs. Small and Medium Enterprises contribute to the GDP by only 20% compared to 70% of some economies. Small and Medium Enterprises Authority is working on reviewing regulations, removing barriers and facilitating access to finance. Moreover, helping young people and innovators in marketing their ideas and products. At the same time, we will seek to establish more business incubators, training institutions and specialized venture capital funds to help entrepreneurs develop their skills and innovations.
The Saudi recycling company . On 16th October 2017, the Public Investment Fund (PIF) was planned to establish the Saudi Recycling Company, a new waste management government enterprise aiming to support and operate the PIF’s investments in domestic recycling sector projects. Aligned with the Kingdom’s Vision 2030 goal to safeguard the country’s environment by improving recycling across the Kingdom, the new company will develop and operate projects designed to increase landfill diversion rates and recycle waste, creating alliances with private sector companies to achieve the highest international standards. Preliminary studies have indicated that the Kingdom currently recycles around 10% of recyclable waste matter, with 90 % disposed through landfill sites, causing damage to the environment, and not making full use of the potential of recyclable materials. More than 40 % of recyclable materials in the Kingdom are produced in three major cities: Riyadh, Jeddah, and Dammam. Recyclable materials in the Kingdom amount to 50 million tons, and the new plan offers the opportunity to recycle around 85 percent of this material, utilizing it as a source of alternative energy to be used in manufacturing. The company will play a key role in achieving the strategic goals of Vision 2030 in preserving
Control Panel for Elevator and Plc system
- Electric components (power contractors and relais) - Electronic components (resistors, IC, condensators, transistors ) - Electronic microprocessor board on demand
Production base: Via Mottoscarone 101. 28019 Suno (NO) Italy http://vgerplanet.weebly.com - email: info.vger@gmail.com
the environment and developing and protecting the natural resources by developing innovative solutions to preserve the quality of life within the Kingdom. The company’s scope of operations will cover all recyclable materials, as well as each stage of the value chain. In addition to its core activities, the company will increase public awareness through campaigns and initiatives designed to introduce the concepts of recycling, its sustainability and importance. Energy service company “Super Esco” On 18th October 2017, the Public Investment Fund (PIF) has announced the establishment of a new energy service company, Super Esco, designed to increase energy efficiency across government and public buildings and stimulate the growth of the Kingdom’s energy efficiency industry in line with the objectives of Vision 2030 to diversify the economy and drive environmental sustainability. In partnership with the Ministry of Energy, Industry and Mineral Resources, the Ministry of Finance, and the Saudi Energy Efficiency Center, Super Esco will provide new investment opportunities by creating partnerships with the private sector to deliver projects. Projects in the Kingdom of Saudi Arabia’s energy efficiency sector have an estimated value of SAR 42 billion, or around SAR 3 billion annually. Internationally, the sector is valued at SAR 130 billion, with projects in the US, Europe, and China accounting for 90 percent of the global market share. Super Esco has been established with a capitalization of SAR 1.9 billion. The company will fund and manage the retrofit of government and public buildings, which represent over 70 percent of overall projects in the sector. These projects will help reduce government spending on the electricity sector, which will in turn reduce natural resource consumption while rationalizing capital investments in expansion projects for the production, generation, transmission, and distribution of electricity.
Welcome to NEOM, the mega-city of the future What is NEOM? NEO is Latin for “new” & M stands for the word “Mostaqbal” which means Future (in Arabic). NEOM = The New Future. NEOM is the world’s first independent special zone spanning three countries. It will be independent of the Kingdom’s existing governmental framework, regarding taxation, customs, labor laws, and other legal parameters pertaining to business, excluding sovereign laws – it refers to everything related to the military sector, foreign policy, and sovereign decisions. As such, a zone within an independent system gives industry the ability to manufacture and provide goods and services, at globally competitive prices. NEOM will have a regulatory framework designed to adopt world-class investment laws that support the livelihoods of residents and the development of targeted economic sectors. The special zone will also adopt an autonomous judicial system subject to independent regulations and legislation, which will be drafted by investors in accordance with international best practice. Social norms in NEOM will adopt leading practices to improve standards of livability for its residents and visitors. The Kingdom has established a special Au-
thority to oversee NEOM chaired by HRH Prince Mohammed bin Salman.The whole project will be owned by the Public Investment Fund.
Where is the NEOM zone? This special zone will be established in the north-western region of Saudi Arabia and is set to include territory from within the Egyptian
and Jordanian borders, to comprise a total area of 26,500 km2. NEOM will provide a plethora of unique development opportunities, as the project’s strategic coastal Red Sea location is notable for its proximity to international markets and trade routes, approximately 10% of the world’s trade. Through the Red Sea, 70% of the world’s population can reach the NEOM in under eight hours flight. In addition, NEOM is blessed with an incredible and diverse terrain that offers: • Untouched beaches with more than 460km of pristine coastline and several spectacular islands • Scenic mountains, with views across the Gulf of Aqaba and the Red Sea, where during parts of winter some are covered in snow • Idyllic and peaceful desert expanses that astound the visitors NEOM is positioned to become an aspirational society that heralds the future of human civilization by offering its inhabitants an idyllic lifestyle set against a backdrop of a community founded on modern architecture, lush green spaces, quality of life, safety, and technology in the service of huma-
nity paired with excellent economic opportunities. NEOM will offer its residents convenient accessibility, allowing them to reach their destinations by walking to encourage a healthier lifestyle. This will be enabled by state of the art urban design principles to design future-proof infrastructure. Public services will be fully automated to help provide efficient services for its residents and businesses. NEOM will also provide its residents with free facilities, such as comprehensive free internet coverage, thereby supporting education and communication. NEOM will attract Saudi Arabians and expatriates, as do all other global societies. The population of NEOM will grow organically in line with its automation and robotics developments, set to reduce labor-intensive manual tasks. This will, in turn, ensure the growth of a highly skilled labor force that will fill creative and strategic positions.
When the NEOM will be completed? Works on NEOM have already started, through establishing communication with a wide network of potential investors and partners; constructions have also started by establishing some critical infrastructure. With the announcement of NEOM, discussions with potential investors/partners have increased. NEOM’s first phase will be completed by 2025.
Why the NEOM has been planned? Saudi Arabia seeks to seize the great economic opportunities of the future by investing in them with constancy and vigor, to diversify the Saudi Arabian economy in the long-term. On top of the obvious rationale mentioned above, developing and building NEOM provides a key opportunity to minimize GDP leakage by allowing those that normally would invest
outside, to give them an option of investing locally, hence minimizing the GDP exodus that happens because of limited local investment opportunities. NEOM will create new opportunities of investment in industries that will be born and created from a white canvas, as well as allowing investors to tap into natural resources, such as endless green wind and solar energies and the Red Sea, where during parts of winter some are covered in snow Idyllic and peaceful desert expanses that astound the visitors
What Economic Sectors will be comprised? NEOM aims to develop nine key economic sectors for the future in addition to the establishment of industries that curb economic leakage in the Kingdom. The key sectors have been identified as: The future of ENERGY AND WATER; The future of MOBILITY The future of BIOTECH The future of FOOD; The future of TECHNOLOGICAL AND DIGITAL SCIENCES; The future of ADVANCED MANUFACTURING; The future of MEDIA AND MEDIA PRODUCTION; The future of ENTERTAINMENT; The future of living as NEOM’s FOUNDATION.
Opportunities for international investors NEOM will offer unique opportunities and advantages to worldwide leading investors and business owners. The most notable of which is the direct access NEOM will provide to Saudi Arabian market as well as the global market, since the zone’s geographic location links three continents. Additionally, the zone will provide a regulatory framework that establishes a business environment conducive to investors’ participation in the drafting of regulation and legislation. Business owners and investors will receive financial support to develop projects that serve NEOM’s future goals since the Saudi Arabian Government has classified this project as a priority at every level. NEOM will be backed by more than $500 billion over the coming years by the Kingdom of Saudi Arabia, the Saudi Arabian Public Investment Fund, as well as local and international investors. Furthermore, NEOM’s livability will be a strong conducive element for attracting the top global talents that the local industries will be able to tap into. Riyadh City
Milan, 25th October 2017, 16h30 – Republic of Indonesia Embassy in Italy and THE PROGRESS TIME Magazine, at the Relais Chateau Monfort in Milan, presented the preview event:
INDONESIA, A COUNTRY CONSTANTLY GROWING, NEW OPPORTUNITIES FOR ITALIAN COMPANIES by Barbara Ganetti
Indonesia Ambassador for Italy, H.E Mrs. Esti Andayani The purpose of this event has been to attract the interest of Italian companies concerning the numerous opportunities of import/export and investment in Indonesia, to create a stable and structured platform for trade cooperation between these two countries and to achieve a synergy between Italian and Indonesian banking institutions, in support of entrepreneurial projects. At the center of the conference, Mrs. Marinella Loddo, Directress of the Italian Trade Agency – Milan who will be moderator;
Speakers: Indonesia Ambassador for Italy, H.E Mrs. Esti Andayani on bilateral relations; Minister Counsellor of Economic Affairs, Mr. Aries Asriadi on trade opportunities and regional market; Chief of Bank of Indonesia
Representative Office for Europe, Mr. Donny Hutabarat on macro economy of Indonesia & banking support for business activities; Director of Indonesia Investment Promotion Centre (IIPC) in London, Mr. Nurul Ichwan o investment opportunity in Indonesia, Mr. Paolo Vitali, UBI Banca – Global Transaction Banking Representative, Mr. Jacopo Antonio Fusaia on how to do business in Indonesia as well as Mr. Alberto Moro, President of ASPESI Milan, Mrs. Valentina Guarino, Representative of Turkish Airlines, Mr. Ivan Magon, Ceo of Vger s.r.l., Mr. Giovanni Scacciaferro, President of EPlatform.
Italian companies present (depending on their sectors): agricultural machinery – energy – food and beverage – plastic – industrial chemistry – industrial electronics – pharmaceutical industry – research and innovation. In-depth subjects: specific attention has been paid to the growing economic development of Indonesia, that nowadays is an important actor of the ASEAN area, a market still to discover for our Italian companies. The analysis of Indonesia growth rate, the reforms realized by its Government that favor the internal development and attract huge Foreign Direct Investments.
Electronics and IT, the perfect match.... by Ivan De Stefano
CEO of Vger srl, Mr. Ivan Magon Today, electronics and IT are sides of the same coin and they are more and more essential each another, sharing the tasks in which they are employed. Our appliances, our car, the elevators we take, our home etc., they interact with us maintaining a high rate of security and, thanks to the harmony between electronics and IT, they have become increasingly smart and completely independent in managing the orders received by the man and the eventual anomalies that could happen. For these reasons, we inevitably lose our competences and we become unnecessary; the example is visible in some area around the world, where projects to replace the human beings with programmed robots in production and assistance environments have already been planned.
We focus on the most technical aspect of this topic, that surely offers research arguments also in the sociological field, with this interview; we are glad to ask some question to Mr. Ivan Magon, CEO of Vger s.r.l., whose headquarter is in Piedmont (Italy), specialized in electronical controls and supervision for elevators. Mr. Magon boasts an over 25 years expertise in the electronics sector and his company has an international vocation yet, with commissions in various part of the world. Mr. Magon will certainly help us to understand the following changes in this sector but also the new demands of the man for technology.
How has the electronics changed in these years? This is a good question. Technology has evolved to satisfy the current requirements. Once, technology was mostly a production need, people created some instruments to improve the production and the product. After the enhance of the production processes, electronics evolved because the users have become more sophisticated and now we trust in technology to “fix” technology. In these years, we are participating in the fusion between electronics and IT, a science that is becoming operative because of the customer that demands smart devices, for instance the car who parks by itself, the washing machine who identifies the type of material and manages independently the suitable program and we inevitably lose our competences because we empower more and more the electronics.
Your company boasts professionals with over 25 years of expertise in the field of electronic monitoring for elevators, what are the products and the services mostly required by international customers? The most required products are those “specials”, for instance multiplex systems with traffic sorting and/or monitoring of the sy-
stem, confidential floors with direct access to the apartment, anti-seismic operations with lock system and alarm in case of seismic wave, also operations dedicated to the firemen interventions, where only them could use the elevator, if they believe it is suitable. Always more frequent are the interventions to solve malfunctions on systems built by other companies, sometimes even the multinational companies call us. Unfortunately, in this sector too, the technical skills have been lost and often, when someone calls for our intervention the system has been broken for many days and we have only a few hours to fix it. What are the most difficult needs of your customers that you could face? For economic interests and reasons of time, our customers ask us to adapt our circuit board to the existing structures, without changing the controllers; this action is not so easy, because, sometimes, to adapt a product we need to rewrite a part of the software. We have realized that most of the elevators’ commands produced by the competitors are a sort of “closed” package, with many limitations.
Hotel Regina Milano Via Cesare Correnti 13 – 20123 MILANO (ITALIA) Tel. 0258106913 – Fax 0258107033 e-mail info@hotelregina.it Web: www.hotelregina.it
Could you present us the Vger new projects for the 2018?
Controller for renewable energy and automation
I draw on the first question, we have thought to develop a new product with “predictive maintenance� and, if possible, that specifies the area of intervention. In 2018, we will present a new circuit board specific for elevators that, if connected to the Internet, it will supply information about the conditions of the system; beyond this skill, it will be able to communicate with different devices for the activation of the engine, with the purpose to facilitate the finding of the spare parts. Always in 2018, Vger will be protagonist of a new start up in the field of interconnected technologies, with a special consideration for renewable energies sources, such as the wind and the solar power.
The Italian Know-How in electronics is always more required from international markets, how do you present your company compared to the other new partners? With our project of Know How Transfer, we are determined to supply a product with a simple but effective technology, able to satisfy the main part of the market needs. As a result, we make clear the idea of how the system really works, at the same time thanks to the simplicity we explain to our partner how to get more skills to face difficult products and systems, also through the field training. Inasmuch we are turned towards foreign markets, it will be precisely our partner that will help us to develop the suitable product for his market. This creates a positive feedback of knowledge.
Production base, Suno (NO) Italy
Lift group controller
SAUDIA, WELCOME to YOUR WORLD! by Ivan De Stefano
The largest company in the Gulf carrying about twenty million passengers a year. SkyTeam alliance member, Saudia has a fleet which includes, both in Europe and in Asia, the very modern Boeing 787 and 777300ER. It’s complemented by the excellent service on board. “Welcome to your world”! Saudia flights from Rome and Milan to Riyadh and Jeddah, with 13 non-stop flights: seven from Roma and six from Milan that allow a weekly cover for easy access to Saudi Arabia from Italy. Operational are targeted mainly for business travellers, with convenient onward connection, and a network of
domestic routes that are the basis of an operational strategy to facilitate the connections in such a large country. The company’s network reaches over 90 destinations around the world: Africa, Asia, the Middle and Far East (including China, Manila, Kuala Lumpur, Colombo, India), and continues to invest in new routes in July 2016 has successfully launched flights from Monaco to JEDDAH RIYADH and, from 18th November 2016, from Ankara (Turkey) to Saudi Arabia in addition to the already ‘existing daily flights from Istanbul. COMPARTMENTS ON BOARD Saudi Arabian Airlines offers its customers three travel classes on most of its flights: First Class, Business Class and Guest Class. Customer satisfaction is a top priority, starting with the reservation and follow up with check-in, boarding, onboard service, landing, baggage delivery and, finally, assistance on arrival.
ENTERTAINMENT ON BOARD Saudi Arabian Airlines uses the most advanced technology to meet the needs of passengers, especially on long-haul flights. On many aircraft Saudia seats have individual video screens touch or managed by fully integrated control panels. This interactive system offers 24 on-demand video channels which can reach up to 40. MEALS ON BOARD On board of Saudi Arabian Airlines all meals are prepared according to world class standards, combining haute cuisine with technology of food science. The catering service of the airline, Saudia Catering, has earned an international reputation for the quality of its food, placed not only at the service of Saudi Arabian Airlines, but also for other national and international airlines.
Milan, a city to invest in... by Ivan De Stefano
President ASPESI Milan, Mr. Alberto Moro
Today, Milan lives the internationalization and the exchanges with foreign countries such as an everyday reality and the world as a constant parterre of emotions. Many are the evidences of the multicultural vocation of the city where there are business men talking with Asia near to young people always more oriented to the mobility, also beyond the continental borders, and people from several multinational companies that choose Milan as the perfect city to arrange an operational headquarter. This new agitation and this new “European city awareness” that Milan has seized we should admit it is arose thanks to Expo 2015, an event which restored confidence to the Milanese people. Milan has revealed to be a city equal to the expectations, ready to host large international events. Today, the atmosphere in Milan is to invest in a network of alliances, to
“be a team”, adopting that model that distinguish Milan from the other Italian cities, to create relations to work on the international cooperation increase of the potentialities and opportunities. To examine in detail these aspects, we have had the pleasure to interview the President of ASPESI Milano (a national association for promotion and trade development societies), Mr. Alberto Moro, an authentic Milanese and a great expert of the city business and cultural world, also thanks to over 80 years of job in residential buildings handed down from generations. In 1994, his expertise and his skills created Moro Real Estate, a specialized office for estate investments, certainly Mr. Moro will help us to understand the multi-level changes of Milan, becoming more and more a Smart City, but also a touristic city and the suitable location for important multinational companies. From your point of view as a professional of the Milanese estate market, could you preview us the structural works scheduled for the year 2020 in Milan? Undoubtedly, one of the innovative projects that will be achieved within 2020 and that will give a significative impulse to the city is the City Life project, with a visual powerful impact because of its three skyscrapers, it will implicate the creation of the broadest pedestrian area in Milan, with traffic and parking only in the basement floor and the realization of the third Milanese central park. The project is inserted in the requalification of the ex-Fiera zone, abandoned after the transfer of the exhibition center in the new center
of Rho-Pero, by Massimiliano Fuksas (excepted the Fiera Milano City Exhibition, hosted in the Portello area, an inner pole of the Exhibition). In order to reach the area, under the large central square of the three skyscrapers, there is the subway stop “Tre Torri� (MM5metro line 5) and 5km of cycle lane will be realized. The general idea is based on ample public spaces, together with leisure and amusement areas around the residences. Instead, the three towers are addressed to become one of the new icons of the city around the world, also showed by the increase interest for the project, from the foreign countries too. There are two other important aspects of the City Life project: the first one will be the requalification of the railways yards, a long path started with the Moratti administration and continued by the Sala board and today shared with different political factions. The projects presented are the representation of the requalification of seven railways yards: Farini, Porta Genova, Porta Romana, Lambrate, Greco, Rogoredo and San Cristoforo, that will give Milan - Garibaldi Station, photo by Mr. Alberto Moro
rise to positive and remarkable changes in the city, giving an insight of Milan during the following decades, requalifying and creating new quarters, rich in green areas. The other project, not less important, will concern the ex-Expo area that will be used as a park for science, knowledge and innovation at an international level, referring to Made in Italy excellences for technology, medicine and culture, promoting worldwide partnership. Unlike many other Italian cities, today Milan confirms its international vocation, attracting several multinational companies that decide to establish here their headquarters, what are the peculiarities of this privilege? Today, the reason to choose Milan is to enter in a constantly-moving city, a European city with an international vision that has found its accomplishment after EXPO 2015, capable to host large events; everything has been successful, the participants have been numerous and for many months they have li-
Duomo Gallery Milan, photo by Mr. Alberto Moro
ved in the city;, this fact returned awareness of their abilities to Milan and to the Milanese, we only should think that the last two years after EXPO, Milan has become full of appointments, every week it hosts exhibitions, meetings and activities that make Milan charming, not only as the City of Business but also reflecting the Italian style and attracting the cultural tourism. Another positive aspect of the city is that it is a “young� city, it involves new generations with ideas, creating modern opportunities and increasing the memorable hard-working nature, in Milan we work and the job is well done; the answer comes also from large international companies, such as Google, Amazon, Microsoft, Samsung and Facebook that choose Milan as perfect city in which open their offices, for representation as well as operative ones, investing economic and planning resources.
As the founder of Moro Real Estate, a company that works in the prestigious real estate sector in Milan since 1994, what are the services dedicated to the Saudi investors? In the last decade, the estate market has changed, it has been obliged to follow the new demands imposed from the market; today, thanks to the internet, we are exposed to an information bombardment, but this not means to have a largest knowledge, we only dispose of more data that in any case need a rule based on the expertise. Today, the estate professionals, especially in important cities such as Milan, have a role more and more difficult and the difference is based on the services that we offer to the customer. Moro Real Estate philosophy rests exactly on this principle, highest quality services, securi-
ty and knowledge of the local landscape, focus on the long-term investment possibilities,
Mr. Maran, the councilor for the urban planning of Milan, we debated about this topic. As a representative of the sector, I think, on the one hand, that today we could implement good quality ideas, without spoil the territory, on the contrary we could improving the citizens quality of life, with less waste of economic resources; on the other hand, the town council has to help the entrepreneurs, simplifying the urban procedures, reducing the commitments, sharing urban projects; with this overview, the public and private sectors together could promote the attraction of international investment.
Milan - Antonini Tower
Milan - San Donato Building
analyzing the true peculiarities of the estate demands from both the private investors as well as from the large multinational companies. Other fundamental factors that make the difference among the estate offices are the expertise, the history and especially the point of view. In 2004, my office previewed the huge potentialities of areas like Porta Nuova and the Isola quarter, at that time certainly less attractive than now; the people who trusted in our requalification concept today have done a profitable investment that increases its value over time.
Today, large international companies and local entrepreneurs develop together procedures of estate investment. The advice I would like to give to international investors is to identify serious professionals for their collaborations, well-established on the territory and with a view of what could be the medium to long term city development, for the best optimization of the investment.
According to your expertise, what are the fiscal and procedural simplifications that Milan could realize to attracting international investors? Such as all the Italian cities, Milan has not its own fiscal autonomy; however, it could simplify the bureaucracy; in the last meeting with
Milan - Losanna Building