Author: OBG Admin

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

Spend away: Government spending for education focuses on new universities and schools

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Education accounted for the highest expenditure of any single sector in Saudi Arabia’s budget for 2015, equivalent to 25% of total anticipated spending. The annual statement does not include defence and security spending, but Jadwa Investment says that examination of Saudi Arabian Monetary Agency figures for 2014 suggests that it accounts for 35%. The 2015 budget also showed a 3% rise in the annual spending allocation for education. The financial outlay represents a continued commitment to Saudi Arabia’s young people, but it was a commitment made against the backdrop of an 11% fall in annual net oil export revenues in 2014. STUDENT POPULATION: One argument

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

Tech drive: Adopting new technology to enable student-centric learning

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Driving forward with reforms to modernise teaching, measure standards and improve spatial diversity by educating people in all corners of the Kingdom, Saudi Arabia is using technology to provide solutions and alternative ways of teaching and learning. Khalil Al Ibrahim, rector of Hail University, told OBG, “In higher education, knowledge moves quickly, technology changes and it is incumbent upon universities to keep up with these changes. This requires investment in top technologies and equipment, as well as research programmes.” In the Middle East, revenues from e-learning are expected to rise from $443m in 2013 to $560.7m by 2016, according to a report by electronic education

Xi Jinping-President of China

Wider horizons: The King Abdullah Scholarship Programme funds thousands of students to complete their studies abroad

Posted OBG AdminPosted in Uncategorized

A central pillar of Saudi Arabia’s drive to become a knowledge-based economy over the last 10 years has been the King Abdullah Scholarship Programme (KASP). In the budget for 2015, the Ministry of Finance announced that SR22.5bn ($6bn) had been allocated for the year to fund 207,000 Saudi citizens living abroad, including the scholars and their dependents and guardians. The sum represented 2.5% of the entire national budget and more than 10% of the allocation for education. It did not include scholarships given to employees

Mohammed El Etreby-Chairman-Banque Misr

Adjusting expectations: New labour laws are forcing contractors to tighten budgets

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While competitive bid prices are putting pressure on margins, contractors in Saudi Arabia are now feeling the effects of new labour regulations on operations and costs. Since the government concluded an amnesty for illegal expatriate workers and began clamping down on illegal labour in November 2013, contractors have been having a more difficult time meeting their labour needs. Riyad Ahmed Al Thagafi, CEO of real estate firm Ewaan, told OBG, “With the Saudiisation policy having been implemented a few years ago, the construction sector is currently experiencing a major labour force deficit.” VISA REGULATIONS: Mohamed Alsayed, the general manager of A.S. Alsayed & Partners, told

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

The bottom line: Oversupply of building materials is causing cost fluctuations throughout the industry

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The building materials sector serves as both a barometer of the wider health of the construction industry and as a critical factor in the bottom line of local contractors. As with the industry in general, sub-sectors such as cement have entered a period of uncertainty. While the government’s extensive development programme has buoyed cement sales and demand over the last decade, current uncertainties surrounding the labour market and global oil price have led to short-term challenges for producers. A DEMANDING MARKET: Between 2005 and 2011,

Pham Hong Hai-CEO-HSBC Vietnam

Finding finance: New trusts and funding vehicles offer solutions to property investment needs

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The opportunities for investors to place capital and for developers to access funding are expanding as Saudi Arabia’s real estate market grows and matures. Indeed, there is an increasing realisation that real estate in the Kingdom is a sound asset class and, consequently, more funds are beginning to eye the market as a means of generating steady returns. BREAKING INTO THE MARKET: Real estate investment trusts (REITs) and funds are a relatively new phenomenon in the Gulf region. The first attempted foray into the trust investment vehicle in the Kingdom occurred in the summer of 2009, when Encore Management, a Swiss-based asset management company, announced

Mohammed El Etreby-Chairman-Banque Misr

Shaping space: Rethinking the building model to meet housing demand

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Given the constricted land environment, development costs and affordability issues in Saudi Arabia, some real estate firms are beginning to rethink the building model in the Kingdom. Indeed, from developing with greater height and density to rolling out fully serviced and planned communities, the built environment across the country is beginning to change. RECONSIDERING THE VILLA: The Saudi market has traditionally been dominated by stand-alone villas, often developed individually by a family on their own plot of land. Given the available space in the country, and a population density ranking among the 25-lowest globally (at 14 people per sq km in 2013), this has hardly

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

Striking a balance: Programmes to support both developers and buyers

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The basic outline of the Saudi Arabian property market provides a tempting picture of a land of opportunity. The most populous country in the GCC region, the Kingdom has seen disposable income grow strongly. Furthermore, it has a youthful population and a culture that emphasises family formation, as well as the prospect of purchasing a first home. These factors present a rare combination in a region defined by majority-expatriate populations. Saudi Arabia is therefore beginning to stand out as a market offering a variety of opportunities and risk scenarios for investors and developers. GETTING ON THE LADDER: Currently, Saudi residents are struggling to get onto

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

Thinking ahead: Makkah has plans to expand its water, wastewater and sewerage networks

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In common with other cities in the Kingdom, Makkah’s growing population and location have placed a strain on the management of its water resources. The city’s rapid urban development, not to mention the regeneration of existing urban areas, is also necessitating a substantial programme of investment to expand and upgrade wastewater and sewerage networks. To achieve the goal of long-term water security, local authorities are increasingly looking to the private sector to provide high-tech and sustainable solutions. With nearly 2m inhabitants, rising to over 6m during the Hajj season, Makkah has long outstripped its capacity to rely upon nearby aquifers and instead draws on water

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

Welcoming the world: Islam’s holiest mosque is being expanded to accommodate an increasing number of pilgrims

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Pilgrimage forms one of the five pillars of the Islamic faith, and performing the Hajj at least once is mandatory for all Muslims who are physically and financially able to do so. The Hajj, however, can only be performed once a year over a specific five-day period. With an estimated 1.6bn Muslims in the world, catering for this requirement thus presents the Saudi government with unique logistical challenges. How to maximise the number of pilgrims able to participate, whilst ensuring their safety and comfort? Nowhere