FRANKFURT/HELSINKI: Nokia-branded mobile phones are about to make a comeback via a new venture that will reunite the Nokia brand with veteran Nokia executives who aim to move into smartphones capitalizing on an existing operation that sells low-cost basic phones.
HMD Global, a new Finnish company set up to revive the Nokia phone brand, on Thursday took over the basic phone business which Nokia Corp. sold to Microsoft in 2014. Nokia the company now largely makes telecom network equipment.
HMD, officially founded six months ago, opens for business this month. It has several advantages over other start-ups, including Nokia’s strong global brand, experienced management and Foxconn as a manufacturing partner.
But it also has hurdles to overcome if it is to break into a crowded smartphone market dominated by models from scores of different players using Google’s Android platform.
“The barriers to entry for the Android phone space are low,” mobile phone analyst Ben Wood of CCS Insight said.
“What HMD has is the Nokia brand and management experience. The key to its success will be driving scale.”
HMD has a licensing deal with Nokia giving it the sole use of the Nokia brand on mobile phones and tablets for the next decade and key cellular patent licenses, for which it will pay royalties to Nokia, which otherwise has no investment in HMD.
As part of the plan, HMD has agreed to rely on Foxconn, the world’s largest contract manufacturer, to manufacture all its Nokia devices.
HMD said it plans to introduce new Nokia Android smartphones in the first half of 2017.
“We want to be one of the key competitive players in the smartphone business,” CEO Arto Nummela told Reuters. Samsung and Apple are now big players, although Chinese brands like Huawei are closing the gap.
Rather than building its own system, the company is working in close partnership with Android’s creator’s, Google.
Nummela said he believed his team’s extensive industry relationships with carriers and retailers, powered by the Nokia brand, could help them quickly capture smartphone share by convincing entry-level buyers of its feature phones to upgrade in markets like India, Indonesia and Russia.
“We really see the opportunity to create some space for ourselves on the (store) shelves,” Nummela said. “Consumers may be carrying different smartphones now, but are they really in love and loyalty to those brands?“
Nummela is a long-time Nokia sales and product development executive, who moved to Microsoft when the phone business was sold.
HMD President Florian Seiche is a mobile phone industry veteran who previously worked at Siemens, Orange, HTC and Nokia. Chief Marketing Officer Pekka Rantala is a former CEO of Angry Birds game maker Rovio, as well as a Nokia veteran.
Nokia brand phones poised for comeback
Nokia brand phones poised for comeback
Startup Wrap – International venture capital interest in MENA rises despite global challenges
RIYADH: International venture capital investors have increased their presence in the Middle East and North Africa region despite a challenging global economic climate, according to a new report by MAGNiTT.
The study highlights significant growth in global participation, with their share of MENA-based startup investments rising from 28 percent in 2020 to 51 percent in 2024.
The global economic climate in recent years has been marked by persistent challenges, including rising inflation, geopolitical tensions, supply chain disruptions, and tightening monetary policies by central banks.
These factors have created a volatile environment for investors, prompting cautious capital deployment and heightened scrutiny of high-risk markets.
In particular, the venture capital landscape has faced headwinds due to declining valuations, slower funding cycles, and a shift toward profitability over rapid growth.
Despite these challenges, regions like MENA, Southeast Asia, and Africa have demonstrated resilience, attracting both local and international capital due to their untapped potential and strategic efforts to foster innovation.
This 23-percentage-point increase underscores MENA’s growing appeal as a destination for venture capital.
The ecosystem continues to be shaped by strong regional investor engagement, driven largely by sovereign wealth fund mandates such as Saudi Arabia’s Saudi Venture Capital Co.
Local investors accounted for 49 percent of the 1,361 unique investors in the region’s startups, with 62 percent of all disclosed capital invested in MENA coming from within the region, MAGNiTT revealed.
However, international interest has surged, with the first nine months of this year marking a 60 percent increase in global investors compared to the previous year.
Philip Bahoshy, CEO of MAGNiTT, attributed the region’s growth to the role of regional Limited Partner programs and high-profile events that spotlight opportunities in emerging markets.
“If you recently attended events like FII in Riyadh, GITEX in Dubai, or Web Summit in Qatar, you would have seen firsthand the growing presence of international investors interested in Emerging Markets. Many of these investors are exploring opportunities but are yet to make substantial commitments,” Bahoshy said.
The UAE has been a standout in the region’s venture growth, with international investor participation climbing from 25 percent in 2020 to 62 percent in 2024, positioning the market as a global hub akin to Singapore.
Saudi Arabia has also seen notable progress, with international investor participation rising from 18 percent in 2020 to 25 percent in 2024, reflecting the Kingdom’s increasing focus on venture capital.
Events such as LEAP and the Future Investment Initiative have played a key role in attracting global attention to Saudi Arabia’s burgeoning venture ecosystem.
In Africa, international development finance institutions have helped foster a growing local investment base.
African investors’ share of total capital deployment increased from 15 percent in 2021 to 35 percent in 2024. This upward trend reflects efforts to strengthen regional ecosystems while still leveraging international expertise.
Internationally, US-based firms such as 500 Global and Y Combinator emerged as the most active of these investors across MENA, Africa, and Southeast Asia between 2020 and 2024.
The influence of American venture capital remains dominant, with US investors topping deal counts in all three regions. However, Southeast Asia attracted the largest capital deployment, with $11.65 billion invested by top international players, compared to $1.177 billion in Africa and $947 million in MENA.
Saudi Arabia-based EdfaPay secures $5m to scale tap-to-pay solution
Fintech startup EdfaPay has closed a $5 million pre-Series A funding round led by OmanTel Innovation Labs, with participation from Aljabr MENA and Waad Investment.
Founded in 2022 by Ghormallah Al-Ghamdi and Nedal Sabbah, EdfaPay offers a tap-to-pay solution that allows small and medium-sized enterprises to use smartphones as point-of-sale devices.
The funding will be used to strengthen the company’s market position in Saudi Arabia and expand its footprint across the MENA region and Pakistan.
The startup previously raised $1.6 million in a pre-seed round in early 2022 and has since entered several new markets, including Tunisia and Morocco.
Social networking app Bubbl raises $350k pre-seed
Saudi social networking platform Bubbl has raised $350,000 in a pre-seed funding round led by angel investor Abdullah Al-Dosari.
Launched in 2024 by Aya Al-Hammoud, the app has already attracted 60,000 daily active users.
The funds will support Bubbl’s plans to scale its user base, with a goal of reaching 1 million daily active users in the near future.
PIF’s Jada commits investment in SEEDRA Ventures Fund II
The Public Investment Fund’s Jada Funds of Funds has announced a commitment to invest in SEEDRA Ventures Fund II, a newly launched venture capital fund managed by SEEDRA Ventures.
The fund aims to invest in early-stage startups with a sector agnostic approach, which coincides with Jada’s strategy.
Bandr Al-Homaly, managing director and CEO of Jada, said: “Our commitment to SEEDRA Ventures Fund II underscores our focus on enabling early-stage businesses that contribute to the Kingdom’s economic transformation in alignment with Vision 2030.”
EFG Hermes launches $300m Saudi education fund
EFG Hermes’s private equity arm has unveiled a $300-million Saudi Education Fund to develop a world-class K-12 operator in Saudi Arabia.
The fund seeks to capitalize on the growing demand for private education, fueled by an expanding student population.
SEF will also acquire a portfolio of international schools in Saudi Arabia, the UAE, and Bahrain, currently managed by GFH under the Britus Education brand.
Amenli secures $2.3m to expand insurtech offerings
Egypt-based insurance tech company Amenli has closed a $2.3 million funding round led by the European Bank for Reconstruction and Development’s Venture Capital arm, with additional participation from Y Combinator.
Founded in 2020 by Adham Nauman, Omar Ezz El-Din, and Shady El-Tohfa, Amenli provides accessible insurance solutions tailored for individuals, families, and SMEs.
The funding will support technology upgrades, product innovation, and market expansion.
Qara raises $2.6m to advance supply chain traceability
Supply chain startup Qara, based in Egypt, has raised $2.6 million from undisclosed investors to fuel its expansion.
Founded in 2021 by Hassan Abouzeed and Khaled Hassan, Qara provides a digital platform enabling product authentication and full traceability for producers.
The company, already active in Egypt, Saudi Arabia, and Kenya, plans to use the funding to expand further into Saudi Arabia under the National Technology Development Programme’s Relocate Initiative.
Logistics startup Locad secures $9m for global growth
Singapore-based logistics platform Locad has raised $9 million in a pre-series B funding round co-led by Global Ventures and Reefknot Investments.
Other participants included Sumitomo Equity Ventures and existing investors such as Antler Elevate and Febe Ventures.
Founded in 2020 by Constantin Robertz, Jannis Dargel, and Shrey Jain, Locad provides a cloud-based logistics engine that helps e-commerce businesses optimize their supply chains.
The funds will support Locad’s international expansion, with a focus on launching in the UAE and Saudi Arabia by the end of 2024.
Furniture e-commerce platform ariika secures $3m to expand
Egypt-based furniture and home decor e-commerce platform ariika has raised $3 million in a series A extension round led by Beltone Venture Capital and Citadel International Holdings.
Founded in 2016 by Khaled Attallah and Shahir Arslan, ariika collaborates with artisans worldwide to design and curate modern home décor products.
Having recently launched in Iraq, ariika plans to enter the Saudi market by January 2025. This follows a previous series A round in which Beltone acquired a 20 percent equity stake.
Natural resources and young population driving Saudi Arabia’s economic growth: BlackRock Investment Institute
RIYADH: Saudi Arabia can attract global investments and successfully diversify its economy thanks to the Kingdom’s abundant natural resources and youthful workforce, said BlackRock Investment Institute.
In its latest report, the asset management firm said Saudi Arabia offers substantial opportunities across public and private markets, though success will depend on the progress of governance, regulatory improvements, and labor market reforms.
The Kingdom is currently embarking on an economic diversification journey known as Vision 2030 by strengthening the non-oil private sector and reducing its decades-long dependence on oil revenues.
With its predominantly young population and labor reforms, the Kingdom reduced the unemployment rate among Saudi nationals to 7.1 percent by the end of the second quarter of 2024, representing a quarterly drop of 0.5 percentage points and an annual decline of 1.4 percentage points.
By the end of the second period of the year, joblessness among Saudi females also witnessed a sharp quarterly decline of 1.4 percentage points, reaching 12.8 percent.
In terms of natural resources, Saudi Arabia holds abundant mineral wealth estimated at $3 trillion, and Vision 2030 aims to turn the mining sector into the Kingdom’s third pillar of economy.
“Saudi Arabia stands at the crossroads of economic transformation. Unlike many developed economies, we think it benefits from low debt levels, ample energy resources, and a young, expanding workforce — a combination that supports long-term economic growth and creates opportunities in infrastructure and urban development,” said BlackRock.
It added: “However, realizing these opportunities hinges on sustained investment. Historical data shows that Saudi Arabia is already an outlier in terms of population growth and has room to increase investment further.”
A recent report released by the International Monetary Fund also echoed similar views, and said that the Kingdom is expected to witness economic growth of 1.5 percent in 2024 and 4.6 in 2025, driven by activities in the non-oil sector.
In October, the World Bank also projected that the economy of Saudi Arabia will grow by 1.6 percent this year and 4.9 percent in 2025.
Capital investments
According to BlackRock, Saudi Arabia has ramped up capital investments, with about $780 billion invested over the past three years, fueled by a bank lending boom and significant public spending.
The report added that Saudi Arabia is successfully leveraging domestic and foreign private financing, while equity and fixed-income markets are developing rapidly through the rising number of initial public offerings and bond issuances in the Kingdom.
A report released in July by the Kuwait Financial Center, also known as Markaz, revealed that the Kingdom led the Gulf Cooperation Council’s initial public offering market in the first half of 2024, raising $2.1 billion in what was an annual increase of 141 percent.
Another report released by Markaz in October revealed that Saudi Arabia raised $512 million from IPOs in the third quarter.
“Building a large, liquid local-currency corporate bond market is key to boosting non-bank financing across corporate bonds, infrastructure debt, and mortgage-backed securities,” said BlackRock.
Attracting investments
BlackRock revealed that Saudi Arabia’s Vision 2030 aims to establish the Kingdom as a leading hub for infrastructure investment.
The Kingdom’s National Investment Strategy seeks to attract $3.3 trillion over the next decade, spanning sectors from energy to health care to tourism.
“The investments are set to cover energy, water, transportation, logistics, digitalization, and services like waste recycling. The transformation involves three main shifts: transitioning to renewable energy, boosting private sector activity, and expanding non-oil sectors like household spending and tourism,” added BlackRock.
According to the report, the Shareek program launched in 2021 could play a crucial role in fulfilling the investment targets of Saudi Arabia.
Through this initiative, the Kingdom targets $1.3 trillion in funding, representing 40 percent of the Vision 2030 goal.
Foreign direct investment, currently a small share of the Kingdom’s GDP, is also targeted to provide 15 percent of Vision 2030’s total investment.
The report added that regulatory improvements such as simplifying business licensing, reducing red tape, enhancing transparency, and introducing investor rights measures are key to elevating investments in the Kingdom.
“Becoming a major investment destination requires broad economic and societal changes, stronger governance frameworks, and regional security assurances to attract capital,” said the analysis.
It added that global investors will also need confidence in regional stability before committing significant capital, as geopolitical tensions remain a major concern determining the future economic growth in the region.
Reliance on oil
According to the report, Saudi Arabia’s future economic growth and diversification plans will not be without any hurdles, as oil revenues have direct impacts on the country’s progress.
“Saudi Arabia’s economic trajectory remains heavily reliant on oil revenue, making it vulnerable to shifts in global energy markets. A decline in oil prices – potentially influenced by increased US production or a slowdown in global demand – could challenge its reform agenda and economic resilience,” the analysis said.
On a positive note, Blackrock added that the Kingdom is aiming to strengthen its position as a low-cost oil and gas producer.
“The BlackRock Investment Institute Transition Scenario sees rising global oil and gas demand over the next decade, with declines approaching 2050. Saudi Arabia’s low-cost, low-emission production positions it to maintain or grow market share across various demand scenarios,” said the report.
It added: “Diversifying energy exports through natural gas/LNG could enhance its competitive edge, though an accelerated low-carbon transition could pressure oil prices.”
According to the analysis, Saudi Arabia is also making significant efforts to reduce greenhouse gas emissions.
The report said that the Kingdom is planning to shift power generation from 40 percent oil and 60 percent gas to an equal mix of gas and renewables by 2030.
“Saudi Arabia’s solar installation costs are 40 percent lower than the global average, boosting energy security, reducing emissions, and freeing up oil for export. Investments in carbon capture and hydrogen production could further support decarbonization,” said BlackRock.
Saudi 2034 World Cup goals include jobs boost and GDP growth
- Saudi Arabia is the only country to submit a bid to host the football tournament
JEDDAH: Saudi Arabia’s hosting of the 2034 FIFA World Cup will not only showcase the Kingdom’s cultural and administrative capabilities but also serve as a catalyst for significant job creation and infrastructure development, according to experts.
Saudi Arabia is the only country to submit a bid to host the football tournament, and the decision will be rubber stamped by FIFA on Dec. 11.
It will be the second time the global event has been held in the Middle East, with Qatar staging the competition in 2022.
Experts told Arab News that Saudi Arabia could expect a GDP boost of between $9 billion and $14 billion, the creation of 1.5 million new jobs, and the construction of 230,000 hotel rooms developed across five host cities to accommodate visiting fans and dignitaries.
Yaseen Ghulam, an associate professor of economics and director of research at the Riyadh-based Al-Yamamah University, emphasized that the World Cup will provide a unique platform to attract foreign direct investment, diversify income sources, and boost tourism, aligning seamlessly with Saudi Arabia’s Vision 2030 objectives.
However, he asserted that the associated costs and logistical challenges must be managed strategically to maximize long-term benefits for the nation.
“The event will help the Kingdom to not only get noticed for its administrative capabilities and cultural depth but, more importantly, will help it to showcase the investment opportunities that currently exist in Saudi Arabia,” he told Arab News.
Ghulam pointed out that the event demands a significant commitment to quickly building state-of-the-art facilities, including stadiums, hotels, and roads, as well as training facilities, transportation networks, and tourist attractions.
Ghulam noted that Brazil’s World Cup cost $18 billion, while Russia spent $13 billion, with half allocated to infrastructure, including 12 stadiums, as well as hospitals, airports, train stations, motorways, and hotels.
He said that while Qatar invested $200 billion to $300 billion over a decade ahead of its 2022 hosting, the amount spent on stadiums was no more that $7 billion, with the rest on infrastructure developments.
Ghulam explained that hosting the World Cup offers both direct and indirect benefits, with economists estimating short-term gains from visitor spending and broadcasting rights to be about 1 percent of global GDP.
For Qatar, he said, visitor expenditure on tourism and revenue from event-related programming is believed to have been between $2.3 billion and $4.1 billion.
“Considering the gross value added, this amounts to $1.6 billion to $2.4 billion, which represents 0.7 percent to 1 percent of Qatar’s GDP in 2022,” Ghulam said, adding that South Korea also experienced the same numbers in 2002.
The associate professor believes Saudi Arabia could expect to see a GDP boost of $9 billion to $14 billion, based on previous events, the Kingdom’s geographical location, and Saudi Arabia’s growing tourism infrastructure.
“Qatar attracted around a million spectators, and Saudi Arabia could double this number due to the religious tourism potential of Muslim spectators alongside the geographic diversity of the country,” he said.
Ghulam stressed the importance of affordability when it comes to accommodation for traveling fans, noting that Qatar’s hotels saw only 59 percent occupancy during the 2022 World Cup due to high prices, with many spectators opting to stay in neighboring countries and use shuttle services.
The economics professor noted that indirect benefits could arise before and after the tournament through higher foreign direct investment and increased tourism from improved experiences during the event. He also mentioned emerging evidence of increased FDI following World Cup hosting.
“For most of the countries that have hosted the same event, the impact started immediately after the announcement. One recent study estimates the magnitude of such an impact, concluding that an average increase in inward foreign direct investment of $4.33 billion is linked to hosting the FIFA World Cup,” he said.
Ghulam added that FDI has increased by a greater amount in well-governed countries, indicating that governance quality is a significant moderating element.
“The evidence shows that Qatar managed to increase the contribution of non-hydrocarbon income by 40 percent during the decade of preparation for the World Cup by investing in infrastructure and other diversification related activities alongside attracting FDI,” he said.
He noted that the multiplier effect of these investments has boosted other income sources, emphasizing that Saudi Arabia’s current non-hydrocarbon income of $453 billion could significantly rise over the next decade in preparation for the event.
Ghulam highlighted that the event would significantly influence Saudi Arabia’s infrastructure development, with stadiums and fan zones benefiting local communities and contributing to the non-hydrocarbon GDP share in line with Vision 2030.
He emphasized the importance of maintaining and utilizing these stadiums for long-term gains, noting that maintenance costs could be significant.
Highlighting the long-term economic impact of the World Cup on local businesses and tourism, he noted that Saudi Arabia topped the UN’s list for significant foreign tourism growth in 2023.
When it comes to job creation, the academic cited a report from Knight Frank which estimated the 2022 World Cup contributed to the creation of almost 850,000 additional jobs in Qatar’s residential sector between 2010 and 2022.
“Since the event in Saudi Arabia is expected to be prestigious and in fact better than previous events, one could extrapolate to more than 1.5 million new jobs, equating to 10 percent of the currently employed workforce,” Ghulam said.
Infrastructure boost
Waleed Al-Thabi, founder and CEO of Aljdwa, a leading Saudi firm specializing in project feasibility studies and development, told Arab News that hosting the 2034 FIFA World Cup is key to Saudi Arabia’s Vision 2030 initiative aimed at achieving significant economic growth.
Discussing how the preparation for the event would impact the Kingdom’s infrastructure development, he said that hosting the World Cup will establish a legacy of stadiums and sports facilities for future generations.
He added that over 130 training facilities will support players, teams, referees, and administrative staff participating in this event.
“Moreover, Saudi Arabia has developed logistics services, expanding the rail network, such as the Riyadh Metro project, which serves as the backbone of public transport in the capital. Initially designed to accommodate 1.2 million passengers daily, the network is projected to reach nearly 3.6 million passengers in its final phase,” Al-Thabi said.
The CEO noted that several regional and international airports are being developed, including King Salman International Airport in Riyadh, which will cover approximately 57 sq. km and rank among the largest airports globally, adding that the new Abha International Airport is also expected to serve around 10 million passengers annually by the end of 2027.
He highlighted that these advancements will enhance travel experiences for fans, improve transportation efficiency, and ensure maximum comfort and accessibility during the tournament.
The CEO expected that event will attract millions of tourists from around the world, leading to a significant increase in demand for hospitality facilities.
“Approximately 230,000 hotel rooms will be developed across the host cities. To maximize the Kingdom’s geographical advantages and diverse areas, the hosting plan will extend to ten supporting cities that will accommodate some of the participating teams’ training camps before and during the tournament,” he said.
With anticipated growth in tourism and commercial activity, Al-Thabi stressed the need for efficient Saudi companies in these sectors to capture a significant share of the cash flow generated during the event.
“Such cash flows contribute to reducing unemployment rates and stimulate the flow of funds within the economy, directly impacting the Kingdom’s GDP,” he said.
Al-Thabi added that jobs will primarily be in event management, security, hospitality, and transportation, as well as facility service and operations coordination, allowing employees to benefit from longer hours and higher incomes, thus enhancing living standards.
“Additionally, the construction sector will expand, creating jobs for engineers, architects, and construction workers, further advancing the Kingdom’s economic development,”
FDI rise
Abdullah Al-Maghlouth, a member of the Saudi Economic Association, stated that the Kingdom’s hosting of the 2034 World Cup will showcase an exceptional and unprecedented version of the tournament, harnessing Saudi strengths to delight football fans globally.
He pointed out that all the stadiums are designed to meet the Kingdom’s long-term infrastructure needs, noting that Saudi Arabia is also developing railway plans to connect with Gulf nations, enhancing the movement of fans and teams.
“While the opening and final matches of the 2034 World Cup will be held in the capital, Riyadh, the maximum distance a fan will need to travel within the Kingdom is two hours,” Al-Maghlouth said.
The Saudi economist further noted that the event will play a pivotal role in attracting foreign direct investment, as hosting plans include the construction of 11 new world-class stadiums and the development of 15 existing ones.
“These projects are expected to draw substantial foreign investment in construction and related services, such as transportation, accommodation, entertainment, and technology. This increased economic activity is anticipated to encourage more foreign companies to enter the Saudi market, thereby enhancing the volume of foreign direct investment,” he said.
Beyond the direct economic benefits, he continued, hosting the event represents an opportunity to develop infrastructure in the host cities.
“These cities will witness significant developments, including improvements to public transportation, roads, and public facilities. These enhancements will elevate the quality of life for residents and leave a sustainable legacy after the tournament concludes, strengthening the long-term competitiveness of these cities.” Al-Maghlouth said.
Furthermore, the event will enhance innovation and entrepreneurship, driving entrepreneurs to devise rapid solutions to challenges faced by organizers, he added.
Moody’s upgrades Saudi Arabia’s rating on strong diversification progress and fiscal prudence
- Saudi Arabia’s local and foreign currency medium-term note program ratings was also upgraded to (P)Aa3 from (P)A1
RYADH: Global credit ratings agency Moody’s Ratings upgraded Saudi Arabia’s long-term local and foreign currency issuer and senior unsecured ratings to Aa3 from A1, taking note of the Kingdom’s progress in diversifying its economy.
Saudi Arabia’s local and foreign currency medium-term note program ratings was also upgraded to (P)Aa3 from (P)A1.
“Continued progress will, over time, further reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition,” the ratings agency said.
“The recent fiscal space exercise and recalibration and reprioritization of diversification projects – which will be regularly reviewed – will provide a more conducive environment for sustainable development of the kingdom’s non-hydrocarbon economy and help preserve the relative strength of the sovereign’s balance sheet.”
Moody’s expects Saudi Arabia’s non-hydrocarbon private sector GDP to continue expanding by about 4 percent to 5 percent in the coming years, among the highest in the Gulf region, as its diversification strategy reduces the Kingdom’s exposure to oil market developments and long-term carbon transition over time.
“Our baseline projections assume there will be no significant downward pressure to oil prices or production over the next few years. We also assume that heightened geopolitical tensions in the region, which are having a limited impact on Saudi Arabia so far, will not escalate into a full-scale military conflict between Israel and Iran with collateral effects that could affect the kingdom’s ability to export oil or deter private sector investment supporting the diversification momentum,” Moody’s said.
Saudi Arabia has invested heavily to induce growth in the non-hydrocarbon private sector, particularly that of the Public Investment Fund’s (PIF) outlays for capital expenditure and domestic investments.
“We estimate that the total spending on projects and long-term investments by the government and PIF will continue to exceed 20 percent of non-hydrocarbon GDP. Private consumption growth will also be strong, as the design of many ongoing projects, including the PIF’s giga projects and other large-scale projects of the government, incorporates commercialization phases that will boost supply-side capacity in the services sector, particularly in hospitality, leisure and entertainment, retail and restaurants,” Moody’s said.
The ratings agency also noted while Saudi Arabia’s fiscal prudence as well as recalibration and reprioritization of projects may affect project implementation and the development of the non-hydrocarbon sectors, “the focus on macroeconomic and fiscal sustainability is credit positive.”
“Regularly reviewing projects to maximize the economic impact on the domestic economy and develop a domestic industrial base and related ecosystems will help the non-hydrocarbon economy develop more sustainably,” Moody’s said.
Citi gets license for regional headquarters in Saudi Arabia, memo shows
- Wall Street giant received the approval from the Ministry of Investment Saudi Arabia
RIYADH: US bank Citigroup has received approval to establish its regional headquarters in Saudi Arabia’s Riyadh, according to an internal memo seen by Reuters on Friday.
The Wall Street giant received the approval from the Ministry of Investment Saudi Arabia (MISA), according to the memo.
“This marks a significant leap forward for our franchise in Saudi Arabia and we look forward to our continued growth in the kingdom,” Citi Saudi Arabia CEO Fahad Aldeweesh said in the memo.
Bloomberg News reported the development earlier in the day.
Wall Street titan Goldman Sachs also received a license in May to set up its regional headquarters in Saudi Arabia’s Riyadh.
