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

A flexible alternative: The cooperative model is a variation on takaful insurance with distinct advantages

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While the rapid development of the global Islamic banking sector has generated plenty of media headlines in recent years, the growth of the takaful industry has attracted comparatively less attention. There are several reasons that can go some way to explain the relatively unheralded expansion of the world’s sharia-compliant insurers. For example, their aggregate asset base is considerably smaller than that of their banking peers, and the adoption of takaful in areas where Islamic banking is well established has been inconsistent, marked by a more

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

Going public: A raft of IPOs signal recovery in the GCC markets

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Over 2014, there has been a welcome recovery of initial public offering (IPO) activity in the GCC region. According to PwC, 16 GCC companies went to regional markets, raising a total of $10.8bn. The tail end of the year proved to be a particularly fruitful time, accounting for $7.3bn of the total and raising hopes that 2015 would see the continuation of the IPO rebound that investors have been waiting for since the dust settled on the global economic crisis of 2008. The Road to Recovery Saudi Arabia played a major role in the 2014 market recovery. The local bourse saw six offerings for a

Pham Hong Hai-CEO-HSBC Vietnam

A clearer framework: New corporate governance guidelines come into play for family-owned businesses

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The corporate governance regimes of Saudi Arabia’s family-owned businesses (FOBs) are a salient talking point in financial circles, for obvious reasons. Estimates as to their contribution to GDP vary, but a 2012 study by the Jeddah Chamber of Commerce & Industry claimed that the Kingdom’s FOBs in that year accounted for around SR350bn ($93.28bn), or 25% of the total. At that time, there were around 5000 FOBs in the country, 156 of which were listed on the Saudi Stock Exchange. Their importance to the economy is central, and their efficient operation is thus the concern of a range of government entities, from the Capital Market

Pham Hong Hai-CEO-HSBC Vietnam

Challenges and opportunities: New protocols and regulations can help domestic insurers compete for upcoming mega-projects

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Project insurance is nothing new in Saudi Arabia: the insurance market in its modern form emerged in the 1970s, when foreign insurers, brokers and agents opened branches in the country to provide coverage for the spike in construction projects caused by the oil boom of that era. Over successive decades these firms expanded their business to segments that are related to other promising fields of economic activity, such as marine cargo, motor vehicles and contract work, and in more recent years the compulsory health and

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Return to the bond market: The Kingdom taps capital markets to provide additional coverage for the 2015 budget deficit

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The recent return to the bond market by Saudi Arabia marks a significant shift in government policy, as the world’s biggest oil exporter taps capital markets to cover budgetary shortfalls and balance drawdowns of foreign reserves. The SR15bn ($4bn) issue in mid-July 2015 was the first sovereign bond offered by the Kingdom since 2007, with senior officials hinting at further forays into the market. The bonds – seven- and 10-year conventional issues with yields of 2.57% and 2.88%, respectively – were sold to quasi-sovereign Saudi

George Richani-CEO-Al Ahli Bank of Kuwait

Entrepreneurial environment: Government efforts signal encouragement for stand-alone private initiatives

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Given the size and breadth of the Saudi Arabian economy it is at first glance surprising that the government continues to play the leading role in supporting local start-ups and entrepreneurs. Where other countries in MENA, such as Egypt and Jordan, have seen the private sector address the segment through angel and seed investment operations, initiatives of this kind have only recently emerged in the Kingdom. This is partly a result of Saudi Arabia’s economic strengths in other areas: the easy returns arising from the

George Richani-CEO-Al Ahli Bank of Kuwait

On the heritage trail: World Heritage status is prompting rapid tourism sector growth

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Visitors to Jeddah in January 2015 were witness to a rare treat: as part of the festivities surrounding the opening of the 2nd Historic Jeddah Festival, an operetta called “Your Sun Shines” was performed by 100 local folk artists. The subject of the operetta was highly apposite: it told the story of historic Jeddah’s social life, how later generations drifted from such ways, and how eventually “the sun started shining again”, as the city’s heritage achievements were recognised by UNESCO. Organisers of the festival – which was expected to draw 1m visitors – were hoping to deliver a clear message. As Prince Mishaal bin Majed,

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Spreading out: Rising demand is being met through large-scale developments

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With Jeddah’s population continuing to grow at pace, the Jeddah Development and Urban Regeneration Company (JDURC) estimates that demand for housing in the city will rise to 40,000 units by 2023, up from a current figure of 18,000-25,000 units per year. Meeting this demand would present a challenge in any city, yet in Jeddah the municipal authorities have the additional problem of redeveloping significant tracts of existing urban development. An estimated 20% of the population currently lives in unplanned developments spread across approximately 50 different sites. Ensuring these developments meet proper planning standards has been a priority for the city since the devastating floods of

Emmanuel Macron-President of France

Breaking new ground: Research has led to a range of alternative technologies and solutions

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Local scientists and engineers working in Saudi Arabia’s laboratories and on its test rigs have been making significant research and development (R&D) gains in the energy technology sector in recent years. In 2014, Saudi Aramco set a new record for inventiveness and innovation – 99 patents were granted to the company in the US, while an additional 154 applications were filed with the US Patent and Trademark Office for consideration during that year. The total number of patents granted to the company in the US marked a significant increase over the 57 granted in 2013 and 58 in 2012. Saudi Aramco operated 11 international research

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

Enhanced efficiency: Considering new technology for cogeneration facilities

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Utility plants that produce power alongside desalinated water or steam allow Saudi Arabia to optimise the use of its hydrocarbons resources to support communities living in the country’s hot, arid conditions. Cogeneration facilities have been operating for many years, but the country is trying to press home the advantage by making use of new technologies. COGENERATION EFFECIENCY: Saudi Arabian Oil Company (Saudi Aramco) is aiming to lead by example with the construction of three new cogeneration facilities as part of a wider energy-efficiency drive across the company. In the firm’s 2013 annual report, which was published in 2014, Khalid Al Falih, the company’s chairman, said,