Pham Hong Hai-CEO-HSBC Vietnam

Breaking boundaries: Businesses are beginning to merge IT and telecoms provision

With the arrival of mobile virtual network operators (MVNOs) targeting those with less to spend on telephony, the Kingdom’s larger operators are hoping to garner profits from contracts with more lucrative segments of the population including businesses and corporate clients. Their strategy is driven in part by the Saudi government’s expansive budgetary stance and its continued spending on major infrastructure projects, which create the need for additional and improved telecoms and ICT networks. While the Saudi Telecoms Company (STC) and Mobily are each further sub-dividing their business client offerings into solutions for small, medium or large enterprises, Zain offers a more generic package of business

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Ahmed Zaki Abdeen-Chairman-New Administrative Capital for Urban Development

Enhancing food security: Local companies are looking abroad to invest in farmland and agricultural infrastructure

The Kingdom’s agricultural sector is a little unusual by the standards of emerging markets. Whereas in many countries the major challenge is turning primary production into higher-value end products, Saudi Arabia is faced with the opposite issue. The Kingdom has developed a highly successful processing industry. However, this sector is restrained to a certain extent by a reliance on imports of raw materials. Focus On Water Ever since the government made the strategic decision to focus on water security in 2008, the major challenge has

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Mark Geilenkirchen-CEO-Port of Sohar

Cloud atlas: Storing data off site is set to get easier

Cloud computing could be one of the keys that will help create a smarter and more efficient Saudi Arabia. However, the authorities recognise that any plans for cloud technology need to be balanced with national security concerns. When the Ministry of Interior chaired a meeting to discuss the implications of the cloud in November 2014, it invited the Ministry of National Guard, the Ministry of Defence and Aviation, the Presidency of the Royal Guard and the General Intelligence Presidency, as well as the ministries representing industry, commerce and communications. Weighing up the threats posed by the cloud against its opportunities is not a new exercise

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

On the front lines: Enhancing the Kingdom’s cybersecurity readiness

The growing security threat posed by cyber-attacks as Saudi Arabia becomes ever more reliant on IT has led to the development of a national information security strategy (NISS) and increasing investment in cyber-security. Demand for cybersecurity products comes from both the government and private sectors. “Cyber-security is big business in Saudi Arabia. All the major companies have dedicated significant budgets to ensuring they have the proper protection,” Jean Yves Tolot, CEO of the electronic security firm Thales, told OBG. This has drawn a large number of multinational IT and security companies to the market, with some of them forming innovative partnerships with local IT and

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Pham Hong Hai-CEO-HSBC Vietnam

Positive impact: The offset programme brings multiple benefits to local firms

Heavy investment in defence procurement by Saudi Arabia has been accompanied by a desire on the part of government to see such spending advance not just the Kingdom’s national security objectives but also its ambitions to become a knowledge-driven economy. Critical to these efforts are foreign expertise and investment in skilled job-creating businesses, and as a result the government set up its Economic Offset Programme (EOP) in the 1980s. Offset rules mandate that successful bidders invest the equivalent of 35% of the value of the technical and service part of contracts in joint ventures (JVs) that will offer high-quality technical jobs to Saudi workers, and

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High in value, low in intensity: The focus is shifting to organic farming and less water-intensive methods and crops

Although Saudi Arabia’s policy shift on self-sufficiency and wheat production over the last five years has garnered the most attention, the government has instituted a number of other plans to mitigate the effects of agricultural production on the country’s water reserves. One of the most important moves in this respect has been the emphasis on organic and greenhouse production, methods of farming that will place less of a burden on the water-stressed country. Water Usage Agriculture has been the leading consumer of water. However, given

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Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

Bulking up: The Kingdom’s ports are expanding to compete internationally

Saudi Arabia’s ports are some of the biggest in the region, and the Kingdom’s combined throughput of 194m tonnes per year (excluding crude oil) is the largest volume in the Middle East. However, with the international trend in shipping moving towards consolidation at ever larger ports (and with ever larger container ships), the government has announced plans to invest $30bn in upgrading facilities to enable the Kingdom’s ports to compete on the global stage. As one of the world’s largest exporters of primary products, the Kingdom has an extensive network of ports on its Red Sea and Gulf coasts. However, with the exception of Jeddah

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Xi Jinping-President of China

Just the ticket: The capital’s new public transport network will utilise the most advanced ticketing technology

With work rapidly advancing on Riyadh’s flagship integrated transport network, local authorities have recently been deciding which ticketing system to implement for the project. The decision is an important one: with SR82.5bn ($22bn) being invested in the metro system alone, an effective ticketing system will be key to attracting sufficient passengers – and revenue – to make the service sustainable. A total of 10 international companies bid for the contract to implement and operate the new network’s ticketing system, and in January 2015, the Arriyadh

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David Gledhill-CEO-Port of Salalah

New networks: Billions of riyals are being invested in metro systems

Saudi residents have long enjoyed cheap and abundant supplies of fuel, making car ownership the preferred choice for transport. Yet with the number of new cars on the road expected to reach 1m per year by 2020, and a population increasingly concentrated in the Kingdom’s main urban centres, municipal authorities are beginning to look to mass transit alternatives. Indeed, five Saudi cities are currently either building or planning major integrated transport systems, with total investment (based on current reports) expected to reach SR250bn ($66.63bn) through to 2025. Of the $190bn of transport infrastructure spending currently forecast in the Kingdom, OBG estimates over a third (35.3%)

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Mohammed El Etreby-Chairman-Banque Misr

Paving the way: Government investment in the sector drives growth

Since the global slowdown of 2008, the Saudi authorities have committed huge sums in infrastructure spending to spur demand in the economy. The government’s strategy has focused on improving transport infrastructure, with unprecedented levels of investment in rail, aviation and port facilities. With oil prices falling, the government is once more stepping in with spending to boost the economy, and a fresh round of investment in transport is in the offing. A Slew of Projects According to government sources, the transport sector is currently the target of some $141bn of investment in rail and public transport alone, with an estimated $90bn of spending forecast on

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