Author: OBG Admin

George Richani-CEO-Al Ahli Bank of Kuwait

Rest assured: A new health care provider will initially serve the expatriate community

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On December 31, 2014 every citizen in Kuwait became a partial owner of the Kuwait Health Assurance Company (KHAC), a new private sector provider of medical insurance. Some 1.15m shares of the company – worth around KD230m ($792.4m) in total paid-up capital – were eventually distributed among nationals by the Kuwait Clearing Company, which handles transactions and settlements for the Kuwait Stock Exchange. These shares are equal to around 50% of the firm. The remaining half of KHAC is jointly owned by a private sector consortium led by the Arabi Group (26%), a local conglomerate, and two government-controlled entities. The Kuwait Investment Authority (KIA), the

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Unlocking potential: The government has introduced new regulations as the market recovery continues

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In March 2014 Kuwait’s central bank announced that foreign banks would be allowed to operate more than one branch at a time in the country. Moreover, over the past few years the Central Bank of Kuwait (CBK) has worked to encourage banks to boost credit issuance to both individuals and businesses. These changes have been lauded as a means of encouraging competition and the development of new banking services and products. “The new rules will have a positive impact on the local market as they enrich the type of services being offered, create new jobs and ultimately result in the economic and social growth of

Mark Geilenkirchen-CEO-Port of Sohar

A stable supply: Drivers and change in GCC-Africa investment

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The push amongst GCC states to invest in Africa came about in earnest following the 2007-08 global food price crisis, and in those days targeted agricultural land and strategic commodity production. Agribusiness, sovereign wealth funds and other agri-investment vehicles were the main players at the time. Primarily state-led, the investments at that time centred on framework agreements with the host market, guaranteeing purchases and providing subsidised credit. Fast forward and in October 2014 Dubai’s Chamber of Commerce noted that Gulf entities had contributed more than $30bn to African infrastructure development over the previous 10 years, a substantial figure when one considers the region’s relatively recent

Mohammed El Etreby-Chairman-Banque Misr

Breathing room: Low debt and ample fiscal reserves provide insulation from market forces

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The drop in oil prices that began in the second half of 2014 has raised questions about how oil-dependent economies like Russia, Nigeria and Venezuela would cope. However, in the case of Saudi Arabia, large fiscal reserves and low levels of debt have enabled the Kingdom to avert the sort of crisis triggered by oil shocks in the past. The Saudi government has adopted a policy of resolutely defending its share of the oil market – an approach that, as of mid-2015, appeared to be yielding the desired results. MARKET MAKERS: According to the Organisation of the Petroleum Exporting Countries (OPEC), global demand for oil

Peter Wong-Deputy Chairman and Chief Executive-HSBC

Fast friends: A deepening of GCC-Asia relations is on the horizon

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Trade relations between the GCC and Asian economies have been growing steadily for some time now. Recent developments suggest, moreover, that they are set to expand further over the next decade. While there are some risks associated with Asian markets, the GCC as a bloc is deepening its commitment to the region. This is signalled by a number of potential trade agreements, increased diplomatic engagement, and the possibility of new political and security arrangements. Free Trade Agreements In September 2013 the free trade agreement (FTA) between the GCC and Singapore, the first between the bloc and a country outside the Middle East, became active. First

Emmanuel Macron-President of France

Looking east: Trade with Asia is growing and diversifying

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Following a difficult period for the international shipping market, in 2012 the container route from Shanghai to the Gulf through Dubai saw the second-highest rate of freight growth in the entire Asian region. This was part of an emerging trend of the maturation of GCC-Asia trade. A relationship that was once just based on meeting demand for energy is diversifying and the GCC is seen as a viable market for Asian goods and investment, a key transit point – given its developed infrastructure – to the fast-growing markets of Africa, and a high-quality producer of goods and services in its own right. Shifting Patterns The

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Enhancing competitiveness: Government policies aim to improve the business environment

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In the World Bank’s 2015 “Doing Business” rankings, Saudi Arabia placed 49th, second among GCC states (behind the UAE at 22nd) and ahead of other key emerging markets such as Turkey, China and Brazil. Despite having slipped five places since 2014, the Kingdom is still comparatively much stronger than other countries in the Middle East and North Africa region. STARTING UP: Saudi Arabia has strived to facilitate business start-ups by progressively cutting the number of days it takes to start a business from over 70 days in 2004 to 20.5 days in 2015, an improvement that is topped only by Indonesia and India over the

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Export potential: Work to encourage growth of non-oil sales abroad is ongoing

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The changing nature of Saudi exports tells the story of the Kingdom’s efforts to diversify its economy. Encouragingly, non-oil exports have been growing more quickly than oil exports in recent years, though oil still makes up a significant majority of the country’s external sales, reflecting the size of the challenge facing the Kingdom with respect to economic diversification. To stimulate the growth of non-oil exports, the government created the Saudi Export Development Authority, which has assumed responsibility for promoting the Kingdom’s non-oil products abroad and assisting domestic companies in exporting their goods. PRODUCT SHIFT: Exports of mineral products, which comprise mainly oil, reached SR1.07trn ($284.6bn)

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Added interest: Foreign private equity firms are playing a growing role in the local market

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While the domestic private equity (PE) sphere continues to grow, international players are also paying closer attention to the Saudi market. In April 2015 the US buyout firm TPG Capital inked a deal that gave it majority stake in the family-owned fast food chain Kudu, a transaction which according to earlier reports valued the Saudi Arabian company at between $400m and $500m. With around 200 outlets in the country, Kudu has built a robust brand in the Kingdom and is therefore positioned to benefit from investment by a group with restaurant chain experience – which in TPG’s case includes an interest in international chain Burger

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Foreign interest: The exchange is poised to benefit from international investment

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The opening up of the GCC’s stock exchanges to foreign investment has been a salient feature of market commentary in recent years. The global economic crisis sent shockwaves through regional exchanges and, in the ensuing period of depressed trading, regulators around the Gulf embarked upon a market reform effort in a bid to attract scarce liquidity. The accession of both Qatar and the UAE to emerging market status by the influential indexer MSCI in May 2014 was a reward for this effort, but even as the decision was being put into effect, the attention of many global investors was already turning to Saudi Arabia. The