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‎Derayah owns 20% of D360 Bank, weighs retail banking services: CEO

Mon, 18 Apr 2022 14:16:00 GMT

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Derayah CEO Mohammed AlShammasi

Derayah FinancialCo.owns nearly 20% ofD360 Bank’s capital, which providesdirectdigital servicesto retail and corporate clients,CEO Mohammed AlShammasi toldArgaam on the sidelines of theSaudi Capital Market Forum.

Derayahlaunched wealthmanagementand securitiestrading activities and seeks to expand its business portfolio to offer retail banking services. The new business activity is still under study and will be revealed after obtaining the necessary regulatory approvals, said AlShammasi.

The Saudi market traders will be more enthusiastic over the coming period, while moving from theindex futuresto the single-stock futures trading and then the option contracts. AlShammasi pointed out thatsuch a transition is essential to develop the financial market and the necessaryrelevant infrastructure to enter the derivatives marketand avoidanyproblems.

Derayah is highly committed to supporting the plans of the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul) to develop the derivatives market in line with the international standards based on the vision of the Financial Sector Development Program, AlShammasi added.

In February, the Saudi Cabinet granted its approval for the Minister of Finance, Mohammed Al-Jadaan, to issue a license for the local digital bank - D360 Bank (under establishment) – pursuant to Article No. 3 of the Banking Control Law.

D360 Bank will be established with a SAR 1.65 billion capital through a consortium of individual and corporate investors, with the Public Investment Fund (PIF) as one of the key investors. The digital bank will be led by Derayah Financial Co.

‎IDC expects Saudi Arabia's ICT spending to hit $37.4B by 2024-end

Thu, 25 Apr 2024 16:07:00 GMT

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Hamza Naqshabandi. Vice President for Custom Solutions in the Middle East, Turkey, and Africa (META) at International Data Corporation (IDC)

Spending on the information and communication technology (ICT) market in Saudi Arabia is expected to reach about $37.4 billion by the end of 2024, showing a growth of 3.3% year-on-year, said Hamza Naqshabandi. Vice President for Custom Solutions in the Middle East, Turkey, and Africa (META) at International Data Corporation (IDC).

On the sidelines of the ICT Indicators Forum, Naqshabandi told Argaam that the main factors driving this growth include the emergence of pioneering and emerging digital sectors such as e-tourism, entertainment, and e-sports.

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This is in addition to continued investments in the infrastructure of mega projects and the great move in Saudi Arabia to adopt emerging technologies such as artificial intelligence (AI) and the Internet of Things (IoT), as well as the venture of international companies into the Saudi market, he added.

Naqshabandi went on to say that the digital gap in the Kingdom has narrowed through gradual reforms to regulations, as well as enabling the thriving ecosystem to place digital technologies within the goals of economic diversification to achieve the goals of Vision 2030.

The IT market is one of the fastest-growing in the Middle East, Turkey, and Africa, with a growth rate of 10%. Spending in this market is expected to reach $18.4 billion in 2024, while spending on cloud services will likely grow at a rate exceeding double digits in the next four years, according to the official.

He further explained that public sector spending on the sector is likely to reach $1.9 billion, with $730 million allocated to emerging technologies in 2024, which will contribute to forming a knowledge-based economy in the Kingdom and further enhance the infrastructure necessary to benefit from AI technologies, which is expected to grow by up to 40%, thus contributing to achieving Vision 2030 goals.

Naqshabandi also highlighted Saudi Arabia’s determination towards transformation, as the IT market in the Kingdom has witnessed remarkable growth during the year 2023, reaching 10% YoY, which comes despite the global economic slowdown and the risks that may result from such investments.

He believes that Riyadh is becoming a hub for digital technology, thanks to the government initiative to attract regional headquarters, as it works to empower local service providers to raise the level of maturity of the IT ecosystem.

‎SAUDIA says domestic aviation sector robust; aims to increase seats

Tue, 10 May 2022 14:28:00 GMT

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Abdullah AlShahrani, Director of Corporate Communication and Media Affairs atSAUDIA

Saudi Arabia’s aviation market is very strong and Jeddah–Riyadh route is the fourth busiest in the world, Abdullah AlShahrani, Director of Corporate Communication and Media Affairs at SAUDIA, told Argaam on the sidelines of the Future Aviation Forum 2022 in Riyadh.

He added that the group is working to expand its seat capacity.

The airline focuses on new cities to increase the number of destinations to 250 from the current level of 100, in line with the Kingdom's Vision 2030.

Further, AlShahrani indicated that the group has four main pillars of transformation, namely development of operations, digital transformation, making Jeddah Airport a transit hub and SAUDIA a key aspect of Vision 2030.

The number of passengers increased by 75% year-on-year in Q1 2022, and the number of flights grew by 40%, the top official said.

He added that the airline launched 10 new destinations to attract more visitors to the Kingdom and to implement the tourism, entertainment and vision plans.

SAUDIA cooperated with the Ministry of Tourism, the General Entertainment Authority and the Ministry of Culture to reflect the Saudi culture inside aircraft, AlShahrani said.

Commenting on offering the company’s shares to the public, he said the airline does not have any current plans in this regard.

‎SAMI eyes acquisitions locally, overseas 'soon': CEO

Tue, 10 May 2022 19:42:00 GMT

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Walid Abukhaled, CEO of the Saudi Arabian Military Industries (SAMI)

Walid Abukhaled, CEO of the Saudi Arabian Military Industries (SAMI), revealed that the company plans to acquire companies inside and outside the Kingdom soon, with the aim of supporting the localization of military industries.

Speaking to Argaam on the sidelines of the Future Aviation Forum 2022 held in Riyadh, Abukhaled added that the company is working on developing key strategic systems that are wholly owned by the Kingdom.

He stressed that the main goal of establishing the company is to achieve the goals of Vision 2030 and to localize 50% of military spending by 2030.

Since its establishment, SAMI has worked on partnerships with about 13 international companies such as Boeing and Lockheed Martin, as well as companies from Europe, US and South Korea, some of which are located in the Kingdom, Abukhaled said.

Further, he indicated that there is a distinct environment in the Kingdom to support the localization of military industries, noting that SAMI is the strategic national partner for the localization of military industries.

The CEO also pointed out that the Saudization rate in the company reached 85%, out of its 2,500 employees.

As for exporting outside the Kingdom, the company has a clear strategy that is currently focused on the Saudi market, which is one of the most attractive and best markets in the world. Accordingly, it attracts most international companies.

“However, if there is an opportunity to export with the same local revenue, there will be no objection,” the top official concluded.

‎Over 150 economic concentration applications reviewed by GAC in 2023: CEO

Sun, 03 Mar 2024 17:27:00 GMT

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Abdulaziz Al-Zoom, CEO of General Authority for Competition (GAC)

The General Authority for Competition (GAC) reviewed more than 150 economic concentration applications in 2023. All gained approval, excluding three that are conditional on some terms, said CEO Abdulaziz Al-Zoom.

In an interview with Argaam on the sidelines of the third annual conference of the Arab Competition Network (ACN), Al-Zoom highlighted that 2023’s economic concentration applications focused on traditional sectors such as oil and petrochemicals, retail, and construction.

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He emphasized the crucial role of artificial intelligence (AI) technologies in identifying monopolistic practices, particularly in monitoring prices and goods as well as detecting collusion in government tenders.

Digital markets have a rapid impact on competition and their significance has grown over the past decade due to their distinct characteristics compared to traditional markets, including speed and fundamental changes, Al-Zoom added.

Many countries around the world realized the importance of digital markets, given their swift impact on competition, he said, stressing the Kingdom's commitment, along with other developed countries, to establishing specialized departments and divisions in this regard.

On the other hand, Al-Zoom noted that GAC is part of the Arab Competition Network (ACN), which was established at the request of the League of Arab States (LAS) and was joined by almost all Arab countries.

The ACN's primary objective is to foster cooperation among Arab countries, facilitating competition and empowering emerging countries in addressing competition-related issues by learning from the experiences of those who have preceded them.

According to data available on Argaam, GAC received 313 economic concentration applications in 2023. The authority issued 172 no-objections in 2023, down 2.3% year-on-year (YoY). Acquisitions dominated the largest number of economic concentration applications at 143, or 83%, of the total. Joint ventures applications amounted to 25, or 14%, of the total.

‎Bain & Company expects Saudi retail sector to grow 4-5% annually

Wed, 28 Feb 2024 11:35:00 GMT

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Cyrille Fabre, Head of Consumer Products and Retail Practices – Middle East, Bain Company

The retail sector in Saudi Arabia is expected to grow by 4-5% annually, given the projected gross domestic product (GDP) growth, Cyrille Fabre, Head of Consumer Products and Retail Practices – Middle East, Bain Company, told Argaam.

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Speaking on the sidelinesof the Retail LeadershipSummit(RLS), he statedthat Saudi Arabia witnessed a recovery in the retailsector in 2023, as consumer spending roseby 6.7%, after difficult last few years markedby value-added tax (VAT), COVID, and inflation.

Some categories like restaurant and grocery grew even faster, while others such as fashion, jewelry, and electronics were more stagnant.

The growth in spending on entertainment means that consumers have less money to spend on retail,Fabre added.

Saudi Arabia’s retail market is changing qualitatively due to the transformation of consumers and purchasing behaviors, quick changes in channels, andmodernization of grocery from traditional trade.

He explained that the consumerlandscape is changing interms ofsegment diversity (elderly, youngpeople, and visitors),consumer interestinvalue (discounts and private brands), and the pursuit of more convenience (digital channels, with e-commerce growing 20%).

Fabri said that discounters are emerging and gainingmarket share.

In 2023, grocerygrew by 4%, while top Saudi listed retailers expanded by 8%.

The recent announcement of the acquisition of Al Raya for Food Stuffs Company JSC by Tamimi Markets Co. is a sign of sector consolidation, he highlighted.

Despite market growth expectations, retailers face challenges on rising cross-border e-commerce operators and higher costs.

He indicated that some categories, suchas fashion, require some government intervention, as they are particularly affected.

He pointed out that Saudi retail isattracting increasing foreign investment due to growth potential and openness.

In the latest report by the Ministry of Investment of Saudi Arabia (MISA), retail and wholesale was the second highestsector in foreigndirect investment flows.