Saudi Arabia went to New York in a bid to woo American investors to its ambitious plans to transform the Kingdom’s economy away from oil dependency, but it was London that stole the show with a shrewdly timed announcement and a flying visit by the head of the London Stock Exchange. Crown Prince Mohammed […]
PIF gets ready to make its debut on the sovereign wealth fund stage
In New York last month, Yasir Othman Al-Rumayyan, CEO of the Saudi Arabian Public Investment Fund (PIF), was asked how its mission has changed from the original mandate when it was set up in 1971. “Now, we’re looking at things differently. It has to make commercial sense, in addition to the developmental aspect. But it […]
Qatars Achilles heel: the prospect of slow financial strangulation
Following the meeting of policymakers from Saudi Arabia, the UAE, Bahrain and Egypt in Cairo to determine the next steps in the standoff with Qatar over its alleged support of terrorism, it is worth keeping in mind the economic and financial cost of the affair. So far, this has been limited, both for the Saudi-led […]
Saudi economy has to rise to the challenge in crucial second half
A midterm report card for the performance of the Saudi economy in 2017 would probably give top marks for effort, but would likely end with: “Could do better.” It has been a difficult year so far. It was flagged up at the time of the budget last December as a crucial 12 months for the […]
Tax normalisation boosts Saudi Aramco prospects
After decades in which it hardly figured on the business horizon, tax is suddenly becoming a big issue in the Arabian Gulf. Not only are minds being concentrated over the introduction of value-added tax (VAT) at the beginning of the next year, but we saw earlier this week how matters of tax policy can drive […]
Oil decline is redefining role of sovereign wealth funds
Aren’t sovereign wealth funds (SWFs) fascinating? These mega-investors have assets bigger than the gross domestic product (GDP) of many nations and can affect markets around the world with a single “buy” order, yet in many cases they are run as an arm of the state bureaucracy that owns them. They are the ultimate investing machines, […]
Saudi Arabia needs foreign friends for its economic reform
The Twittersphere is afire with a controversy over the appointment of a foreign executive to a senior post in the communications department of Saudi Arabian Airlines (Saudia). “Employment of foreigners is rampant in some Saudi companies, while the national cadres are marginalized,” wrote one outraged tweeter over the appointment of an experienced Lebanese public relations […]
The UK no longer rules the waves, how can it be a global trade leader?
Theresa May, the British prime minister who has the historical misfortune to be guiding her country’s economy through its most difficult time since the dark days of hyperinflation and the International Monetary Fund (IMF) bailout in the 1970s, wants to make the UK a world commercial power again. “We are by instinct a great global […]
SoftBanks $100 billion vision a Marshall Plan for the digital age
You run out of superlatives when you consider the Vision Fund, the tech investment vehicle launched by Japan’s SoftBank and backed by some of the shrewdest investors in the world. It has probably already passed the $100 billion target set by Masayoshi Son, the chief executive of the Japanese telecoms firm, last October. Whatever the […]
Top Gulf business predictions as we dive into 2017
It is that time of year when I either look like the wisest man in the world, or make a complete fool of myself. Rather like a football goalkeeper facing a penalty, I have to decide which way to dive. If I chose correctly, I am a hero. If not, I am lying in […]