Author: OBG Admin

David Gledhill-CEO-Port of Salalah

Legislative change: The new mortgage law formalises real estate lending

Posted OBG AdminPosted in Uncategorized

The effect of recently introduced mortgage legislation has become one of the more salient industry concerns in 2015. First promulgated in March 2013, many market observers thought the law a long overdue formalisation of a rapidly growing segment. Real estate lending had been steadily rising as a percentage of the consumer credit total for some years, increasing from SR70bn ($18.7bn) in 2013 to SR94bn ($25.1bn) in 2014, according to data from the Saudi Arabian Monetary Agency (SAMA). The IMF, in its 2013 Article IV Consultation with Saudi Arabia, took note of the situation, recording that real estate finance from banks to individuals has risen by

Pham Hong Hai-CEO-HSBC Vietnam

Record levels: With remittances continuing to grow, banks are tapping into the market for money transfer services

Posted OBG AdminPosted in Uncategorized

According to a statistical bulletin released by the Saudi Arabia Monetary Authority (SAMA) in early 2015, the amount of money remitted by expatriates in 2014 reached a record high. In total, SR153.3bn ($40.9bn) was transferred to the home countries of the nation’s foreign labour force, representing a rise of 3.6% over the previous year. Data published by the UN Economic and Social Commission for Western Asia (ESCWA) show that 1.2 people arrived in the country per 1000 population between 2005 and 2010 – a trend

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

Agreeing to disagree: Dispute resolution and enforcement of foreign judgements and arbitral awards

Posted OBG AdminPosted in Uncategorized

Parties doing business in Saudi Arabia often select binding arbitration in the Kingdom, a preferred neutral foreign jurisdiction or another GCC state as the method for dispute resolution. In 2012 an arbitration law was enacted in Saudi Arabia confirming the right of parties to agree to settle their disputes through arbitration if the dispute is one in which conciliation would be permitted. Awards issued pursuant to the Arbitration Law are binding and enforceable through the competent authorities. Generally, the Board of Grievances (BoG) has jurisdiction with respect to the enforcement of foreign judgments and arbitral awards in Saudi Arabia. FOREIGN JUDGEMENTS: To enforce a foreign

George Richani-CEO-Al Ahli Bank of Kuwait

Air of authority: A look at the measures taken to improve corporate governance and disclosure standards

Posted OBG AdminPosted in Uncategorized

Since its formation in July 2004, the Capital Market Authority (CMA) has taken various measures to improve corporate governance and disclosure standards for Saudi Arabian public companies, which has also resulted in the improvement of such standards among private companies that may seek to be publicly listed in the future. PREPARING THE GROUND: The CMA adopted the Corporate Governance Regulations in November 2006, and since then through a series of board resolutions has made more and more of its rules binding. In addition to being

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

Planning for the future: Tourism authorities look to improve standards and build capacity

Posted OBG AdminPosted in Uncategorized

Despite playing host to a plethora of natural and cultural attractions, the Kingdom’s tourism sector remains relatively under-developed and is largely limited to the religious pilgrim market centred on Makkah and Medina. The legacy of this under-development is particularly felt in the regulation of the sector. The Kingdom’s regulatory body, the Saudi Commission for Tourism and Antiquities (SCTA), was established as recently as 2000. Moreover, for the first 15 years of its existence the SCTA has been working within a legislative framework from 1975 (the Royal Decree on Hotel Regulations). NEW LEGISLATION: Although the SCTA has made significant advances over the past decade in terms

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

Untapped potential: Investors hope new destinations will help grow the domestic market

Posted OBG AdminPosted in Uncategorized

Domestic tourism in Saudi Arabia has enjoyed something of a surge in recent years, with spending rising from SR59bn ($15.7bn) in 2010 to SR103bn ($27.5bn) in 2014 – representing compound annual growth of 15%. Yet, taken on an individual basis, Saudis continue to spend significantly less per domestic trip than they do when travelling abroad: excluding transport costs, Saudis on average spend SR3631 ($968) per foreign trip, compared with SR1896 ($505) on leisure trips at home, according to statistics from the Saudi Commission for Tourism and Antiquities (SCTA). Private polling indicates Saudi spending on foreign tourism is higher. According to a study by consultancy firm

Peter Wong-Deputy Chairman and Chief Executive-HSBC

Going digital: Efforts to digitise services under the government’s e-health initiative are expected to boost efficiency and patient satisfaction

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As part of efforts to make health care spending more efficient, the government is forging ahead with a number of digitisation initiatives under the banner of its electronic health, or e-health, programme. The need for such a strategy has been precipitated by a “perfect storm demanding continued transformation in health care”, according to Munir Ismet, HP’s head of cloud business for public sector, health care and education in Europe, the Middle East and Africa, speaking at the Fifth Saudi eHealth Conference in November 2014. He

Emmanuel Macron-President of France

Keeping it local: Despite foreign competition, the market share of local pharmaceuticals manufacturers has increased

Posted OBG AdminPosted in Uncategorized

Over the past decade, Saudi Arabia has successfully promoted the development of local pharmaceuticals manufacturing, with their share of the market rising from 14% to 18% between 2008 and 2012. Many of these companies started as sole importers and distributors of pharmaceuticals, and went on to develop their capabilities, in some cases by forming partnerships and joint ventures with global and regional firms. Most local pharmaceuticals firms remain focused on producing generics, but some are also involved in contract manufacturing on behalf of international firms.

Mark Geilenkirchen-CEO-Port of Sohar

Those who can: Increased investment in medical education and training should help to boost Saudiisation of the sector workforce

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The rapid expansion of the health care system in Saudi Arabia has increased demand for health workers, from doctors and nurses to hospital administrators and pharmacists. As part of the Kingdom’s ongoing transformation into a knowledge-based economy, and with a view towards the sector’s long-term sustainability, the government is investing heavily in medical education and training for nationals. These efforts are already yielding results in terms of raising the proportion of Saudis working in the health sector, though there are parts of the system –

Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

New chapter: A variety of programmes will ensure the market has the trained workforce it needs

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The newest manifestation of Saudi Arabia’s commitment to ensuring its young people have the skills to survive and thrive in a diversified knowledge economy is the Colleges of Excellence (CoE) programme. By August 2015, there were 37 CoE institutions offering free training and education to Saudi citizens across the Kingdom. Under the CoE model international training providers with expertise run a range of vocational courses for men and women, as well as staff and operate their own curricula in purpose-built facilities, which are supplied free of charge by the Saudi government. The purpose of the scheme is to ensure Saudi school leavers acquire useful professional