Qatar manufacturing sector sees robust growth

Scion Industrial Engineering

The manufacturing sector of Qatar is showing a robust growth as 18 new factories were established in the fourth quarter of the last year.

According to figures released by the Ministry of Commerce and Industry, the number of new local products registered in the last quarter of 2021 was 81. In the same period, 768 new workers were inducted in factories while factory adherence to industrial requirements remained at 75%.

As per the data of the Ministry on its official Twitter account, almost 3-day average time was required for industrial development services. The contribution of manufacturing industries to the GDP in Q3 of last year was QR15.88bn. The total exports of local origin in the fourth quarter of the last year were QR97.41m.

According to the Ministry’s data, Industrial-Manufacturing Production Index in October 2021 reached 111.7.

It is pertinent to mention that the manufacturing industry of Qatar had contributed QR12.02bn to GDP in the first quarter of 2021 thus there is almost QR3bn increase when Q1 of 2021 is compared with Q3 of the same year.

According to an earlier data of the Ministry, 12 new factories had been added to the industrial sector from April to June 2021 while the worth of total exports of local origin had reached QR68.28m in Q2 of 2021. There was an increase of 719 workers in factories in Q2 of 2021. The Ministry had earlier revealed that 32 more local products had been registered in Q2 of 2021.

The comparison of data of Q4 2021 with the first or second quarters of the same year indicate an increase in all areas showing that Qatar’s economic diversification plans are moving fast in the desired direction.

As per the data shared by the Ministry in June last year, the manufacturing industry had contributed over QR10bn to Qatar’s GDP in the fourth quarter of 2020. If Q3 2021 is compared with Q4 2020, there is an increase of around QR5bn in contribution of manufacturing industry to country’s GDP.

Qatar National Manufacturing Strategy 2018-2022 aims to accelerate growth in the sector to develop and diversify state’s economy.

According to information released by the Ministry of Commerce and industry in May 2021, the recycling industry in Qatar produces 215 products from 135 factories. Paper products and the printing industry contributes 78 products from 62 factories.

Qatar’s building materials and chemical products industry has 281 factories with 392 products. The medical products sector makes 22 products from five factories.

The metal industry with 179 factories makes 291 products.

Source:https://thepeninsulaqatar.com/article/05/03/2022/qatar-manufacturing-sector-sees-robust-growth

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges

Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges: report
Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy

UAE Egypt Investment
Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia pledged $15 billion to support Egypt, making it the latest Gulf state after the UAE and Qatar to back an economy that’s under increasing pressure from Russia’s war in Ukraine.

Qatar is putting up $5 billion for deals in the most Arab populous nation, while Abu Dhabi wealth fund ADQ made a roughly $2 billion deal to buy Egyptian state-owned stakes in publicly-listed companies.

Egypt first announced plans to sell one of three power plants co-built by Siemens AG around three years ago, and multiple international investors expressed interest in the assets.

In 2020, it targeted selling a stake in Wataniya Petroleum as the first salvo in plans to offer as much as full ownership in up to 10 companies held by Egypt’s National Service Products Organization, which is affiliated with the Defense Ministry.

Ministers are due this week to discuss which state-owned companies will be offered on the Egyptian stock market in 2022, Planning Minister Hala Elsaid said March 31.

Source:https://www.arabianbusiness.com/industries/energy/saudi-arabia-qatar-uae-vie-for-stake-in-egypt-power-plant-fuel-distribution-firm-after-investment-pledges-report

Apparel Group expands Qatar footprint with launch of 20 stores at Place Vendôme mall in Lusail City

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Global fashion and lifestyle retail conglomerate Apparel Group has expanded its footprint in Qatar, with the launch of 20 stores at the Place Vendome mall in Lusail City.

The 20 new stores includie Charles & Keith, Beverly Hills Polo Club, Rituals, LC Waikiki, Birkenstock, Molten Chocolate & Café, Skechers, R&B, R&B Kids, BBZ, Hema, Crocs, Dune London, Levis, Aldo, Inglot, Aldo Accessories, Athlete’s Co, and Calvin Klein Underwear. Tim Hortons is already operating at the new location.

Sima Ganwani Ved, the founder and chairwoman of Apparel Group, who was featured in Arabian Business’ Indian Power List 2022, said: “The retail landscape in Qatar has evolved significantly over the last few years, as customers become increasingly discerning and attentive to global shopping trends while staying true to their roots and culture.

“Continuing Apparel Group’s commitment to providing an elevated shopping experience to our loyal customers, we are proud to be partnering up with Place Vendôme and further expanding our strong retail footprint in the Qatar market.”

Apparel Group’s LC Waikiki store will be the largest in the GCC region, spanning a total floor area of 28,000 square feet.

Additionally, the global fashion and lifestyle retail conglomerate will be opening a Rituals flagship store along with R&B Kids and Calvin Klein underwear stores for the first time in Qatar.

Ved added: “Our brands’ expansion with Place Vendôme is in line with our strategy of being responsive to consumer demand. Qatar continues to be a strategic market for us and we are proud to be part of the country’s growth.”

Apparel Group offers an enhanced shopping experience, that brings a large variety of carefully selected international and regional labels to a discerning audience.

Place Vendôme is a multibillion dollar mixed-use development in Qatar’s emerging Lusail City. Place Vendôme is a project of United Developers, a group of four Qatari investors who partnered to align their expertise in retail, real estate, construction, and contracting.

The 1,150,000 square metre development will host two five-star luxury hotels, Le Royal Meridien and Palais Vendôme, a Luxury Collection Hotel, Le Royal Meridien Residences, a mall featuring up to 580 different retail outlets with an exclusively luxurious wing dedicated to top designer labels, and a central entertainment component showcasing constant attractions.

The hotels and residences will be operated by Marriott International, which is set to deliver a luxurious and authentic experience that aligns with the Place Vendôme brand.

Source:https://www.arabianbusiness.com/gcc/qatar/qatar-industries/apparel-group-expands-qatar-footprint-with-launch-of-20-stores-at-place-vendome-mall-in-lusail-city

European Commission takes step towards visa-free travel for all GCC countries

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The European Commission – which is the executive branch of the European Union – has taken another positive step towards its goal of implementing visa-free travel for all countries in the GCC.

In its latest decision, the European Commission has proposed the waiving of visa requirements for all Qatar and Kuwait nationals.

Under this proposal, once agreed, Qatar and Kuwait nationals holding biometric passports would no longer need a visa when travelling to the EU for short stays of up to 90 days in any 180-day period for business, tourism, or family purposes.

The high representative and vice president of the European Commission, Josep Borrell (below), said: “Our proposal to lift visa requirements for Qatari and Kuwaiti nationals is a first step to make it easier for people from the entire region to travel to the European Union.

“The final objective is to ensure regional coherence and ultimately achieve visa-free travel for all Gulf Cooperation Council countries. Together with our upcoming Joint Communication on the Gulf, this proposal will reinforce the overall partnership and strengthen the cooperation between the EU and the Gulf Cooperation Council.”

This proposal comes after the Commission assessed a number of criteria including irregular migration, public policy and security, economic benefits, and the union’s relations with the two countries. It will contribute to strengthening relations with Gulf countries.

The vice president for Promoting our European Way of Life, Margaritis Schinas (below), said: “Today we are proposing short-stay visa-free travel to the EU for Qatari and Kuwaiti citizens with biometric passports – facilitating people-to-people contacts and strengthening business, social and cultural ties.

“This is the result of the success of the governments of Qatar and Kuwait in achieving far-reaching reforms and reflects the increasing intensity and depth of EU relations with both countries. It is an important achievement for citizens in both regions, and I hope that the European Parliament and the Council will adopt our proposal swiftly.”

After an assessment of the criteria set in the EU rules on visa requirements, the European Commission concluded that Qatar and Kuwait present low irregular migration risks and are increasing cooperation on security issues with the EU.

They issue biometric passports, which is a pre-condition for visa-free travel to the EU. Qatar and Kuwait are also important economic partners for the Eurpean Union, in particular in the energy sector.

The commissioner for Home Affairs, Ylva Johansson (below), said: “The proposal for visa exemption for Qatar and Kuwait nationals facilitates business travels, tourism, and family visits to the EU.

“It is also a step towards stronger regional coherence in the Gulf region when it comes to visa regimes. The EU will continue engaging with the remaining visa-required Gulf countries that are interested in visa-free travel to the EU.”

Visa-free travel for GCC nationals
It is now for the European Parliament and the Council to examine the proposal and decide whether to grant visa-free travel to the EU to nationals of Qatar and Kuwait.

If the proposal is adopted by the European Parliament and the Council, the EU will negotiate a visa waiver agreement with Qatar and Kuwait, respectively, to ensure full visa reciprocity for EU citizens.

Visa-free travel to the EU for nationals of Qatar and Kuwait will start applying once the visa waiver agreement enters into force.

The Commission is monitoring the situation and may propose new visa exemptions in the future where appropriate based on an assessment against the criteria set in the EU rules on visa requirements.

In particular, the EU will continue engaging with the remaining visa-required Gulf Cooperation Council countries that are interested in visa-free travel to the EU.

The Commission will shortly launch technical discussions with these partners on the fulfilment of criteria for visa exemption under the Visa Regulation. The final objective is to achieve visa free travel for all Gulf Cooperation Council countries.

EU’s current visa-free regimes
The EU currently has visa-free regimes in place with more than 60 countries and territories.

EU law lists the non-EU countries whose nationals need visas to travel to the EU and those whose nationals are exempt from that requirement.

Under the visa-free regime, eligible non-EU nationals can enter the Schengen area for 90 days, within any 180-day period, without a visa.

Visa-exempt travellers visiting the Schengen area will be subject to the EU Entry/Exit System (EES) as of second half of 2022 and to the European Travel Information and Authorisation System (ETIAS) as of May 2023.

Exemptions from the visa requirement play a key role in facilitating people-to-people contacts and strengthening political, economic, research, educational, cultural, and societal exchanges.

The proposal for visa exemption for Qatar and Kuwait nationals is a step towards stronger regional coherence in the Gulf region, following the visa exemption granted to the United Arab Emirates in 2014.

Under the visa exemption, travellers can visit all EU Member States except for Ireland, as well as the four Schengen associated countries (Iceland, Liechtenstein, Norway and Switzerland).

The visa exemption is independent from possible work permit requirements in EU Member States.

It does not provide for the right to work in the EU, although Member States have the possibility to allow travellers to conduct a paid activity during their stay.

Source:https://www.arabianbusiness.com/industries/travel-hospitality/european-commission-takes-a-step-towards-visa-free-travel-for-all-gcc-countries-as-travel-rebounds-in-2022

UAE’s Prime Healthcare wants to make a breakthrough into halal pharmaceuticals

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Halal medicines as a category within the wide universe of pharmaceuticals?

Dubai’s Prime Healthcare is definitely hoping this breakthrough happens in the UAE and Gulf markets – and at some point in the near future itself. “Worldwide, halal pharmaceuticals make up 7 per cent of the global pharma market, but many still remain unaware of such options,” said Dr. Jamil Ahmed, Managing Director at Prime, which operates healthcare facilities and pharmacies in the UAE.

“Compare that with halal food, which is already a $1 trillion plus global market and expected to see growth of 17 per cent in the next four years to be $3 trillion. Clearly, there is a lot of awareness that needs to created around halal pharmaceuticals.”

A sort of a fist step has been with Prime signing up with one of the leading names in the business, Pharmaniaga Partners of Malaysia. The deal encompasses the right to register, import, market, sell and distribute pharmaceutical products from the Pharmaniaga-owned entity, PMB. On whether the deal also includes rights to manufacture these generic drugs locally, Dr. Ahmed said that would depend on how fast the local market adapts to this line.

Still ‘complex’
Getting the regulatory approvals are “more complex” on halal medicines, said Dr. Ahmed. “Once those established processes are there, clearing approvals will be easier,” he added. “Right now, the market is too narrow, and there is also resistance at the moment from some of the established pharma makers.

South Asia could lead the way
From its still limited size of 7 per cent of the global market, halal pharmaceuticals could grow to be around $200 billion by 2024, according to the Prime chief. Key markets fuelling that growth would be Malaysia and Indonesia. Dr. Ahmed that global growth will pave possibilities in the Gulf and wider region.

“Dubai will be our base to bring our products to other countries in the Middle East, Africa and even Europe,” said Datuk Zulkarnain Md Eusope, Pharmaniaga Group’s Managing Director. “PMB is certified as a halal manufacturing plant by the Department of Islamic Development Malaysia.”

The facility manufactures more than 120 pharmaceutical products, and more than 95 of them have been certified halal, while the rest are on the way to receiving the same.

SOurce:https://gulfnews.com/business/uaes-prime-healthcare-wants-to-make-a-breakthrough-into-halal-pharmaceuticals-1.87211872

UAE to emerge as global digital finance hub

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The UAE is fast emerging as the digital finance capital of the region and a global digital hub, helped by conducive regulations, government leadership and talent inflow.

The UAE is driving digital transformation with the adoption of digitization across public and private sectors.

The UAE government recently approved a Digital Economy Strategy that aims to increase contribution of this sector to 20 per cent – more than doubling the current target of about 10 per cent in 10 years.

Also, the emergence of blockchain-based financial transactions and development of regulatory frameworks for digital assets at onshore and offshore jurisdictions within the UAE gives it a clear competitive advantage in digital finance.

Metaverse transition
As Metaverse becomes the centre of digital transition for economies and enterprises, it does not yet have an industry-wide definition. It can be thought of as one conceptual iteration of the internet supporting a collection of real-time applications and experiences across devices.

As businesses prepare for the Metaverse, the next generation of the internet (Web3) – which combines virtual reality, virtual money and virtual transactions – the UAE is set to emerge as a leader in Metaverse finance (MetaFi).

MetFi is a combination of decentralized finance (DeFi), centralized finance (CeFi), and traditional finance (TradFi), with new products designed to meet the unique needs of the new economic ecosystem.

Financial services in Metaverse
Financial services will play an important role in the evolution from capital formation to supporting commerce within the Metaverse. Fundamental to its economic infrastructure would be a high-transaction throughput financial infrastructure, necessitating need for payment rails in the Metaverse. Financial institutions can also play a role in providing liquidity, including for certain DeFi protocols as well as financing in the Metaverse.

The UAE’s banking sector has witnessed rapid developments in digital transformation with digitization of existing services, a number of digital-only services, and blockchain-based transactions.

Full steam on digital
According to Citibank’s Digital Money Index, the UAE is ranked fifth globally, behind Switzerland, Luxemburg, Hong Kong and Singapore. The UAE is far ahead of its Gulf peers with Qatar at 10, Bahrain and Kuwait at 31 and 33, respectively.

Metaverse readiness
Ghose believes UAE’s digital money readiness potentially ties into the Metaverse, which is emerging as the next potential big-tech. Metaverse combines the physical and digital worlds in an immersive manner – and not purely in the virtual reality space. It would require countless new technologies to come together, including applications around Web3, DeFi and non-fungible tokens (NFTs).

Enterprise use cases of the Metaverse will likely include internal collaboration, client contact, sales and marketing, advertising, events and conferences, engineering and design and workforce training.

SOurce:https://gulfnews.com/business/uae-to-emerge-as-global-digital-finance-hub-1.87224932

Private sector companies can list shares on ADX’s Growth Market without the need for an IPO

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Privately owned businesses will now be able directly list shares on the Abu Dhabi Securities Exchange (ADX)’s Growth Market, without the need for an initial public offering (IPO), presenting a path for companies to begin their capital markets journey.

To be eligible for inclusion in the Growth Market, companies must convert to a private joint company, have at least two years of incorporation and records of audited financial statements, and list at least 5 percent of their share capital.

The exchange also offers companies post-listing assistance, including access to AGM management, dividend distribution, and corporate communication support.

Privately owned companies can also benefit from a wide investor base, with key support from the ADX on investor engagement, and an opportunity to enhance their brand equity through the Growth Market, which is the Abu Dhabi Securities Exchange (ADX) rebranded Second Market.

The Growth Market, which replaces the Second Market established in 2014, is a key equity market on the exchange that connects investors and privately owned businesses.

The move complements Abu Dhabi’s fast-developing ecosystem for companies that are looking to catalyse their growth.

The chairman of ADX, Hisham Khalid Malak, said: “The Growth Market is an integral part of the ecosystem that Abu Dhabi is building to nurture business, from start-ups through to maturity. Abu Dhabi provides one of the most business-friendly environments in the world, which has been enhanced by an accommodating legal framework and government initiatives to promote opportunities for the private sector.

“The Growth Market will provide confidence to owners of companies and investors that there is a clear and straight-forward pathway for companies to begin their capital markets journey in Abu Dhabi.”

The Growth Market is open to businesses from any industry, including sectors as diverse as sports, transportation, wholesale trading and healthcare.

Equally, both the listing and disclosure requirements have been specifically tailored to this group of companies while ensuring that governance and the process is both robust and streamlined in nature.

The managing director and chief executive officer of ADX, Saeed Hamad Al Dhaheri, said: “As we continue to execute on our ADX One strategy we endeavour to both revaluate our existing offering and introduce new products and services which enhance connectivity between investors and companies looking for differentiated opportunities for growth.

“The Growth Market encapsulates our continued ability to meet both issuer and investor needs while also adding scale to our offering and growing exchange. By paving the way for companies to begin their capital markets journey, in a streamlined and less onerous manner, we open up numerous growth avenues for them to explore including facilitating a potential IPO on the Main Market in the future.”

With a market capitalisation of $16.88 billion (AED 62 billion), the Growth Market delivered robust performance in 2021, allowing companies to enhance their market share and fuel their growth.

The value of shares traded on the Growth Market in 2021 exceeded $4.35 billion (AED 16 billion), while the total number of companies listed on the market increased to 13.

This growing and strong ecosystem is designed to help them fuel their growth while gaining invaluable experience of having their shares being publicly traded along with the wider associated benefits such as access to capital and funding, enhanced governance, and increased liquidity for shareholders.

The rebranding follows the unveiling of a new brand and logo for the exchange last year. The exchange celebrated the launch of the Growth Market with a bell ringing ceremony held at its headquarters.

The relaunch of the Growth Market is part of the ‘ADX One’ strategy to enhance liquidity and increase the exchange’s market capitalization over the next three years.

Announced at the beginning of 2021, the ‘ADX One’ strategy comprises 22 strategic projects to encourage the listings pipeline, enhance corporate governance and introduce new products and services that meet the requirements of issuers and global investors.

The market capitalisation of the Abu Dhabi Securities Market General Index has more than doubled since 2021 to more than $490 billion (AED 1.8 trillion), supported by a series of listings and increased international investment.

Meanwhile, the benchmark Abu Dhabi General Index (ADI) gained 64 percent in 2021, making it one of the best performing equity indices in the world.

Source:https://www.arabianbusiness.com/money/corporate/capital-markets/private-sector-companies-can-list-shares-on-adxs-growth-market-without-the-need-for-an-ipo

Dubai Crown Prince issues ICT resolution to develop policies on digital services for the government

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In a move that seeks to align the information and communication technology (ICT) strategies of Dubai’s government entities with the emirate’s digital transformation objectives, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of The Executive Council of Dubai, has issued Executive Council Resolution No. (15) of 2022.

According to the resolution, the Digital Dubai Authority in collaboration with relevant government entities, will develop policies across all areas concerned with achieving the government’s plans for digital transformation.

These policies will include the ICT annual budget of government entities; shared digital services of government entities; data centres and the Government of Dubai’s cloud services, among other areas.

The resolution also aims to mitigate the risks associated with digitalisation initiatives launched by the government, the state-run news agency, Wam, reported.

While ensuring the optimal use of existing infrastructure, data, and services, the resolution also aims to develop procedures that will ensure ICT compatibility and integration at the government level.

The Director General of Digital Dubai Authority is authorised to approve the policies introduced pursuant to the resolution and their amendments. Policies that have been approved must be published on the authority’s website.

According to the resolution, Digital Dubai Authority is tasked with overseeing the implementation of the policies across various stages, notifying government entities about the approved policies, and providing government entities with technical assistance to implement the policies.

The authority is also tasked with preparing regular reports to be shared with The Executive Council on the adherence of government entities to these policies.

Dubai Crown Prince issues ICT resolution to develop policies on digital services for the government
The ICT resolution seeks to ensure the optimal use of existing infrastructure, data, and services, while mitigating the risks associated with digitalisation initiatives.

Sheikh Hamdan ICT
In a move that seeks to align the information and communication technology (ICT) strategies of Dubai’s government entities with the emirate’s digital transformation objectives, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai and Chairman of The Executive Council of Dubai, has issued Executive Council Resolution No. (15) of 2022.

According to the resolution, the Digital Dubai Authority in collaboration with relevant government entities, will develop policies across all areas concerned with achieving the government’s plans for digital transformation.

These policies will include the ICT annual budget of government entities; shared digital services of government entities; data centres and the Government of Dubai’s cloud services, among other areas.

The resolution also aims to mitigate the risks associated with digitalization initiatives launched by the government, the state-run news agency, Wam, reported.

While ensuring the optimal use of existing infrastructure, data, and services, the resolution also aims to develop procedures that will ensure ICT compatibility and integration at the government level.

The Director General of Digital Dubai Authority is authorised to approve the policies introduced pursuant to the resolution and their amendments. Policies that have been approved must be published on the authority’s website.

According to the resolution, Digital Dubai Authority is tasked with overseeing the implementation of the policies across various stages, notifying government entities about the approved policies, and providing government entities with technical assistance to implement the policies.

The authority is also tasked with preparing regular reports to be shared with The Executive Council on the adherence of government entities to these policies.

GITEXSTARS2019-Hamad Obaid Al Mansoori
Hamad Obaid Al Mansoori, Director General of Digital Dubai Authority
The Director General of Digital Dubai Authority will issue a decision specifying the timeframe for implementing the policies for government entities.

The decision will also determine the start date for each phase, the government entities that must implement each policy, as well as the implementation procedures for each phase.

According to the resolution, government entities are required to implement the policies as per the timeline set by the Director General of Digital Dubai Authority and fully adhere to them.

They must also provide the authority with specific data and reports on a regular basis, among other requirements.

The resolution annuls any other legislation that may contradict with it and is effective from its date of issuance and will be published in the official gazette.

Source:https://www.arabianbusiness.com/politics-economics/dubai-crown-prince-issues-ict-resolution-to-develop-policies-on-digital-services-for-the-government

As TRSDC advances construction, focus shifts to employees’ physical, mental wellbeing

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The Red Sea Development Co. is marching ahead with its construction plans as it aims to have its first hotels this year at the site.

For this, thousands of workers and staff are mobilizing to the destination, and TRSDC is making sure they are all safe and well.

As the UN marks the World Health Day on April 7, TRSDC reiterated its commitment to focus on the wellbeing of its employees.

TRSDC’s efforts to protect its staff against COVID-19 were spearheaded by head of health and safety Brian Spraker while Julie Parisien, the senior portfolio strategy director, handled the strategy to operate new hospitals in the Red Sea area. Spraker stressed that safe practices are central to the business philosophy at TRSDC, where the physical and mental wellbeing of employees is of paramount importance.

The TRSDC has been incorporated as a closed joint stock company, wholly owned by Saudi Arabia’s Public Investment Fund.

The company has been established to develop and promote a new international luxury tourism destination that will set new standards for sustainable development and bring about the next generation of luxury travel.

The project was announced in July 2017 and is one of the three giga projects aimed at diversifying the Saudi economy in keeping with the Kingdom’s Vision 2030.

TRSDC officials, who are fully aware of the threat posed by COVID-19 to its workforce, have made significant progress on the ground to keep this pandemic at bay.

More than 15,000 workers are now onsite, and the company has awarded over 800 contracts to date, worth over SR20 billion ($5.3 billion).

“We have been able to maintain our workforce onsite safely, which has allowed construction to remain on target. To ensure that everyone had enough space to social distance, we moved a proportion of workers to temporary accommodation outside of our construction village, including four local schools,” Spraker said.

A phased approach was used when mobilizing staff back to the office after the mandatory shutdown was lifted.

TRSDC not only implemented mass PCR screening on site during the initial stages of the pandemic but it also implemented a robust training and communication process to educate its staff, including two companywide webinars hosted by International SOS. Nearly all the 16,000 workers on the sites were fully vaccinated as part of the protection program launched by the company.

For her part, Parisien gave details about the contracts awarded to Steward alf Global Health Co. to operate a major hospital in the area.

“TRSDC awarded the operations contract for a major new hospital to the Steward alf Global Healthcare Co., a joint venture between Alf Healthcare, the healthcare arm of Saudi-based Alfanar, a renowned developer and operator of large-scale public-private-partnership projects, and leading international healthcare provider Steward Health Care International,” Parisien said.

She added: “Steward alf Global Healthcare Co. combines the local experience of Alfanar with international best practice from Steward Health Care International, guaranteeing the very best of medical care is provided.”

The hospital will offer primary and secondary care to the community of 14,000 people working on site and later to visitors of the Red Sea, including emergency care, family medicine, radiology, clinical support, women’s health, and pharmacy services. The intention is to develop a highly efficient and patient-centric hospital, according to the company.

“A hyperbaric chamber will also be operated as an integrated part of the facility’s Emergency Department, enabling world-class primary treatment for diving accidents, such as decompression sickness,” Parisien said.

The hospital will employ around 300 to 400 employees. “The development maximizes employment opportunities for local Saudi nationals, as part of TRSDC’s broader alignment with the Kingdom’s Vision 2030. With a mandate to develop local talent, Steward alf Global Healthcare Co. will provide continuous professional development, telemedicine and community education for local Saudi residents,” Parisien indicated.

Source:https://www.arabnews.com/taxonomy/term/420556

Lebanon banking sector crumbles amid a deepening economic crisis

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The recent Lebanese court order restricting lenders from moving money abroad is the fallout of deep rot long building in the banking sector. This comes on the back of the country’s mounting debt amidst the deteriorating economic condition – the crisis that many blame on Lebanon’s corrupt political class and the government which defaulted on repaying the debts to banks.  

On March 24, Lebanese judge Ghada Aoun ordered the Lebanese customs administration to prevent six Lebanese banks from sending money abroad. The banks targeted were Bank of Beirut, Bank Audi, Creditbank, Bankmed, SGBL and Blom Bank.

“Lebanese banks are technically broke, but until this moment, they aren’t legally so,” said economist Roy Badaro in an interview with Arab News.

He explained that the word ‘illiquid’ might be more appropriate as no one really knows about banks’ possible undeclared assets. In addition, no Lebanese bank has so far officially declared bankruptcy.
Badaro said banks are in denial of their situation. “Their main issue is that they were lured by the unhealthy profits offered by the government to finance its debt. Meanwhile, they abstained from financing the economy,” he pointed out.

Liquidity crisis
As the Lebanese government is embroiled in massive corruption charges, the state has amassed over a $90 billion debt that it is no more capable of paying, which in turn affected the liquidity of banks.
The banking sector responded to the asset freeze with a two-day strike on March 21 and 22. This might be repeated if more pressure is placed on the banking sector, warned a banking source on condition of anonymity Judge Aoun is a close ally of President Michel Aoun, who is demanding a forensic audit of the Lebanese central bank, in the wake of Lebanon’s default on over a $90 billion debt as a fallout of state mismanagement and corruption.

Ironically, Aoun’s party has been in power for the past decade and exclusively handled the electricity portfolio. Experts believe the latter accounts for over 40 percent of the debt. Industry observers tracking the development fear the banking sector’s insolvency crisis that has been triggered by the state’s failure to meet its debt payments is expected to worsen with time. The sector will further unravel, with banks having to shut down possibly.

Judge Aoun had previously frozen the assets of these banks, including members of their boards. The judge is in the process of investigating transactions they undertook with the country’s central bank.
Additionally, Judge Aoun issued travel bans against the heads of the boards of these banks.

While the banks are facing the heat now and are being blamed for the current economic crisis, industry observers believe that the country’s corrupt political class should take the blame as it failed to discharge its duties and responsibilities.

“The political class is attempting to divert attention from its failings prior to the (May parliamentary) elections. They want to show that they are doing something by making the banking sector their scapegoat,” said one of the bankers whose assets have been frozen, on condition of anonymity, in an interview with Arab News.

Lebanon will hold its first post-uprising parliamentary elections in May. In October 2019, Lebanese rose and protested against Lebanese political parties’ corruption.

“If the authorities implemented official capital controls measures, we would not be in the current quagmire of lawsuits, asset freeze, and other judicial decisions,” said Nassib Ghobril, chief economist at Byblos Bank, in an interview with Arab News.

One of the main aims of a capital control law is to ensure equal treatment to all depositors, he underscored. The capital control law will additionally limit preferential treatment that non-resident and well-off depositors can afford by retaining lawyers at elevated costs. At the same time, local judicial decisions discriminate against the other depositors by giving advantage to one over many,
added Ghobril.

Banking sector to shrink
Previous market dynamics allowed for the existence of 47 commercial banking groups, he said, adding that the market forces will determine the future number of banks in Lebanon.Ghobril feels that the outlook of each bank will be decided by the plan for solvency and liquidity and the business model that banks will submit to the central bank.In turn, the authorities will put certain criteria for recapitalization, which will determine which banks will continue and which banks will exit the market.
Badaro believes nonetheless that only a few banks will survive.

“As we foresee a GDP of less than $30 billion in the next five years, and as the ratio of banks assets to GDP would be around 100 percent, this means we will end up having 7 to 12 banks,” he emphasized.
The sector’s role will also evolve. In his opinion, its main functions will be focused on trade
financing and short-term loans in small amounts.

According to figures provided by Badaro, banks currently possess an estimated $4 billion, which means that for most depositors, money cannot be accessed.The government and central bank estimated the financial gap at $69 billion, or what they consider as the “losses,” specified Ghobril.
What was leaked to the press is that 74 percent of this amount will have to be borne by depositors and commercial banks, while the state and the public sector escape without assuming any part of the burden, he added.“This is absurd, as it is the abuse of power, the mismanagement of the public sector, and the mismanagement of the ensuing crisis that led to the current state of the Lebanese economy and banking sector,” said the Byblos Bank economist.Therefore, Ghobril warned that the state should assume most of the burden of the losses, not depositors, “as putting the burden on depositors will lead to a long-term loss of confidence.”

Source:https://www.arabnews.com/node/2059586