DUBAI: World leaders from business, politics, academia, the arts and media have begun the snowy journey up the Swiss Alps — by car, train or helicopter — to attend the 48th annual meeting of the World Economic Forum (WEF) in Davos.
Amid what the WEF organizers called an “unprecedented participation by global leaders,” the meeting will welcome 70 heads of state, including US President Donald Trump, who surprised them with a late acceptance of an invitation he declined last year.
Trump will address the meeting on Friday, in virtually the last event before it ends.
About 2,500 people will attend the gathering, themed around the subject “creating a shared future in a fractured world,” to discuss major issues affecting world politics, economics, business and the environment.
“The meeting will focus on reinvigorating international collaboration as a way of solving shared challenges in an era increasingly defined by societies under strain and competition between nations,” the WEF said.
The issue of women’s’ greater participation in world and national politics and economics is a major item on the agenda, and the WEF has made a statement of its own by appointing an all-female board of co-chairs to oversee the proceedings.
Men still outnumber women in the official participation lists, however. Only 21 percent are female, but this is a higher level than ever before, WEF said.
There is a high level of involvement from the Middle East and North Africa. Mirek Dusek, the WEF’s director for the region, said: “We are really seeing engagement deepen from the economies and countries of the Middle East. There is an even stronger delegation this year from Saudi Arabia.”
The changes within the Kingdom last year under the Vision 2030 strategy to reduce oil dependence have prompted renewed interest in the country’s affairs. There are several high-ranking Saudi ministers at Davos, and it will feature on at least a dozen panels, discussion sessions and cultural events at the meeting.
Business will also be conducted in separate events outside the formal WEF structure, with Saudi Aramco, the national oil company expected to launch an initial public offering this year, taking part in many of them.
Among other Saudi organizations represented at Davos will be the ministries of commerce and investment, economy and planning, finance, foreign affairs, transportation, and communications. The Saudi banking authorities and Riyadh stock exchange are also listed among participants, as are sports and other investment organizations.
A big delegation is also expected from the UAE, traditionally a big participant in WEF, while eight other regional heads of state are expected to attend.
Dusek said the presence of Trump helped make the event “historic.” The last-minute acceptance by the American president — the first by a White House incumbent since 2000 — has created some stir at the Swiss town, 1,560m up in the Alps. Its normal population of about 11,000 rises dramatically each January, with armies of support staff looking after the delegates.
Security, provided by the Swiss police and army, will be tighter than ever because of the US presidential presence. Sources said some of Trump’s own large security entourage will have to be housed in Zurich, a two-hour car ride away, because the town itself is full.
Professor Klaus Schwab, the WEF’s founder and executive chairman, said: “Our world has become fractured by increasing competition between nations and deep divides within societies. Yet the sheer scale of the challenges our world faces makes concerted, collaborative and integrated action more essential than ever.
“Our annual meeting aims to overcome these fault lines by reasserting shared interests among nations and securing multi-stakeholder commitment to renewing social contracts through inclusive growth,” he added.
The world of celebrity will be represented by pop singer Elton John, Hollywood actress Cate Blanchett, and Indian actor and director Shah Rukh Khan. All have received WEF awards for their charitable and humanitarian work.
World leaders gather in Davos for ‘unprecedented’ economic forum
World leaders gather in Davos for ‘unprecedented’ economic forum
Closing Bell: Saudi benchmark index edges down to close at 12,266
RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, losing 105.61 points, or 0.85 percent, to close at 12,266.46.
The total trading turnover of the benchmark index was SR5.4 billion ($1.2 billion), as 41 stocks advanced, while 201 retreated.
The MSCI Tadawul Index also declined by 15.52 points, or 1.01 percent, to close at 1,521.64.
The Kingdom’s parallel market, Nomu, lost 92.37 points, or 0.29 percent, to close at 31,644.81. This comes as 30 stocks advanced while 52 retreated.
Arabian Internet and Communications Services Co. emerged as the best-performing stock, with its share price surging by 4.82 percent to SR355.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 3.90 percent to SR29.30, and Shatirah House Restaurant Co., which saw a 3.65 percent increase to SR23.26.
Abdullah Saad Mohammed Abo Moati for Bookstores Co. rose 3.02 percent to SR42.70, while Jamjoom Pharmaceuticals Factory Co. gained 2.74 percent to SR164.80.
Anaam International Holding Group saw the steepest decline of the day, with its share price easing 5.80 percent to close at SR24.68.
Al Mawarid Manpower Co. fell 3.45 percent to SR134.20, while Al Majed Oud Co. dropped 3.28 percent to SR171.20.
Middle East Healthcare Co. also faced a loss in today’s session, with its share price dipping 2.99 percent to SR81.20, while Mutakamela Insurance Co. saw a 2.77 percent to settle at SR17.52.
On the announcements front, Dar Al Arkan Real Estate Development Co. has fully redeemed its $600 million sukuk from its 2025 Series 6 Medium-Term Note program.
In a bourse filing, the company confirmed that the sukuk was paid in full on its due date, with the principal amount transferred to the designated account.
The sukuk, valued at $600 million, was originally issued on Oct. 15, 2019, with a trading end date of Feb. 15.
Dar Al Arkan utilized its internal resources to meet the obligation, ensuring a smooth redemption process. HSBC Bank served as the transaction’s paying agent and sukuk holders’ agent.
A total of 3,000 sukuk units, each with a par value of $200,000, were redeemed, representing 100 percent of the issued amount.
Sukuk holders are scheduled to receive their respective amounts in their accounts on Feb. 17.
The financial impact of the redemption will be reflected in the company’s first-quarter 2025 results.
Dar Al Arkan acknowledged the role of its investors and sukuk holders in the transaction, emphasizing their continued trust in the company, its board, and its executive management.
Turkiye faces fiscal strain as earthquake reconstruction pushes spending, says minister
RIYADH: Turkiye’s efforts to tighten fiscal policy are being hampered by the financial burden of earthquake reconstruction, Finance Minister Mehmet Simsek said, as the government grapples with balancing spending and economic stability.
Speaking during a closing panel at the AlUla Conference for Emerging Market Economies, Simsek said the country’s fiscal position remains under pressure due to ongoing rebuilding efforts.
Turkiye was struck by a 7.8-magnitude earthquake and a powerful aftershock on Feb. 6, 2023, devastating 11 provinces, killing over 53,000, and causing $34.2 billion in damages — 4 percent of its 2021 gross domestic product, according to a World Bank rapid damage assessment report. The estimate covered direct physical damage but did not account for indirect or secondary economic impacts.
“We have spent about $74 billion over the past two years, which is equivalent to just over 6 percent of GDP on earthquake reconstruction because we are building cities from scratch. Currently, 450,000 units are under construction; it’s the whole infrastructure,” Simsek said.
“Last couple of years, fiscal deficit to GDP has been around 5 percent, which is relatively high by Turkish standards. This year, we aim to bring it down to about 3 percent, so fiscal adjustment is underway,” he added.
The fiscal challenges come as Turkiye’s government pledged in March to continue tightening policy to curb inflation. The same month, Fitch Ratings upgraded Turkiye’s credit rating to “B+” from “B,” citing a more disciplined approach to monetary policy.
Despite headwinds, Simsek said inflation expectations are improving, albeit slowly.
“Inflation expectations are improving, but it’s been sluggish, in particular among households and among, you know, corporates, while markets obviously tend to have a better reading of what we are saying,” he said.
He emphasized that there is no substitute for better policies, stressing that the key lies in sound policymaking and effective execution. “For this year, it’s a combination of tight monetary policy and tighter fiscal policy combined with a more supportive incomes policy,” he said, adding that these measures should help sustain disinflation, which is crucial for improving expectations.
Macroeconomic stability
During the panel, Egypt’s minister of planning, economic development, and international cooperation, Rania Al-Mashat, said investing in resilience is an investment in the future.
“There are first principles that we all agree on, macroeconomic stability, this is a necessary condition if we want to move forward on privatization, if we want to move forward on confidence and credibility internally and externally,” Al-Mashat said.
She pointed to recent reforms that have stabilized Egypt’s economy, particularly in the foreign exchange market, and noted a retrenchment in public investment. “Right after March, you can see the manufacturing non-oil sector moving forward. We can see more exports taking place once the intermediate inputs into production were actually pushed,” she added.
Pakistan’s Finance Minister Muhammad Aurangzeb echoed the emphasis on fiscal responsibility, saying the country has achieved a primary surplus through disciplined management.
“Our taxes to GDP ratio has been languishing between 9 to 10 percent. That sort of moved in the direction of 10.8 percent at the end of December. We have agreed to move it to 13.5 percent to join the committee of nations and to bring a certain level of sustainability to the primary surplus that we have,” Aurangzeb said.
“On the other side, it’s also discussion on the expenditures and making tough policy choices with respect to what is a good cost and bad cost,” he added.
Brazil’s economic outlook
Brazil’s Finance Minister Fernando Haddad said the country’s central bank has played a key role in bringing inflation under control while maintaining growth.
“We are growing in the last two years around 3.4 percent a year, contradicting all of the predictions both domestic and international,” Haddad said.
“And we understand that the fiscal adjustment that we’re doing is not recessive because we’re guaranteeing a growth rate of 3.4 percent around a decline in inflation,” he added.
Organized by the International Monetary Fund and Saudi Arabia, the first edition of the high-level annual conference in AlUla aimed to address global economic challenges. The two-day event brought together finance ministers, central bank governors, and policymakers, alongside leaders from the public and private sectors, international institutions, and academia.
Emerging economies must ‘punch their weight’ in global policy
RIYADH: Emerging economies must play a greater role in global economic discussions, Saudi Arabia’s Minister of Finance, Mohammed Al-Jadaan, said at the closing of the AlUla Conference for Emerging Market Economies.
Organized by the Saudi Ministry of Finance and the International Monetary Fund, the forum highlighted the need for developing nations to assert their global influence, focusing on economic diversification, deregulation, and digital transformation.
Al-Jadaan stressed that emerging markets play a crucial role in shaping international economic policies and must be confident in their contributions.
“Emerging economies will need to punch their weight. They need to gain more confidence, they need to acknowledge, understand—even with humbleness—that they have something to say to the world,” he said.
He also criticized the dominance of advanced economies in global decision-making forums, emphasizing that “advanced economies have a lot to say, but they cannot resolve a lot of the key global issues alone.”
IMF Managing Director Kristalina Georgieva echoed this sentiment, highlighting that economic growth and dynamism are increasingly driven by emerging markets.
“Where is the youth population? Where is the potential for high growth that benefits everybody? It also benefits advanced economies—it is in the emerging world,” she said.
Georgieva outlined three critical steps for emerging markets: diversification, deregulation, and digitalization.
“Diversify your economy, your trade relations, your engagement, your vision for how you move forward,” she urged.
She also emphasized the role of government in facilitating economic growth by reducing unnecessary regulations.
“The government should do that—give indication as to where, what is the direction to travel, and then get out of the way,” she said, calling for the removal of bureaucratic obstacles.
Finally, she stressed the necessity of embracing digital transformation, particularly in artificial intelligence and financial transparency, to ensure competitiveness in a rapidly evolving global economy.
The conference, described by Al-Jadaan as “possibly the first global forum” dedicated solely to the economic prospects of emerging markets, provided a platform for leaders to discuss pressing challenges and opportunities.
“Bringing experts and discussing issues, challenges, and means of actually cooperating and working together to improve the lives of the people and the emerging economies and the world at large” was a core objective, he said.
As the event concluded, Georgieva asked the audience if they would be interested in a second edition of the conference, receiving an enthusiastic applause.
She confirmed that the IMF and the Saudi Ministry of Finance would document key takeaways and begin preparations for future discussions.
“We will work with our regional office and the Ministry of Finance so we can publish proceedings from the conference. But also, we will start immediately on thinking about how we bring this forward,” she said, indicating prospects for another conference edition.
Georgieva expressed optimism about the future of emerging economies, stating her vision for a world where developing nations are no longer seen as “emerging” but as equal players in the global economy.
“My dream, by the time I finish my term, is that we retire the term ‘emerging’ because you will have fully emerged,” she said.
Dentsu CEO vows to help shape Saudi Arabia’s Vision 2030 through innovation
DUBAI: Japanese marketing and advertising firm Dentsu Group is expanding into Riyadh as it seeks to support the Kingdom’s transformation, according to its CEO.
Speaking to Arab News Japan, Hiroshi Igarashi said his firm is in alignment with Saudi Arabia’s Vision 2030 diversification initiative.
Through Dentsu Sports International in the Middle East, the company aims to reshape the Kingdom’s sports and entertainment landscape, delivering fan-centric experiences through sponsorships, digital engagement, and analytics.
“Saudi Arabia is positioning itself as a global hub for media, sports, and technology. Our ‘One Dentsu’ model aligns with Vision 2030’s focus on efficiency, innovation, and collaboration,” Igarashi said.
The ‘One Dentsu’ model, led by Deputy Global Chief Operating Officer Takeshi Sano, integrates media, creative and digital services for tailored business impact.
Igarashi told Arab News Japan that the company is a growth partner focused on digital transformation, not just acting as a service provider.
He said it was important to leverage global expertise in digital marketing, brand building and data solutions to empower local and international brands.
“Saudi Arabia is setting new standards, and we bring global best practices combined with local insights,” Igarashi said.
He highlighted how Dentsu’s Japanese roots, built on trust and precision, resonate with Middle Eastern business values: “We merge Japanese craftsmanship with global agility to drive lasting success.”
The CEO added: “We prioritize measurable results over media scale, offering clients a strategic edge in a fast-evolving market.”
GCC private capital financings surge to $54.8bn: S&P Global
JEDDAH: Private capital financing in the Gulf region has surged, reaching $54.8 billion between 2020 and 2024, a significant increase from the $10.4 billion raised in the previous five years, according to a new report.
S&P Global’s latest findings suggest that this upward trend is expected to continue, driven by companies seeking alternatives to traditional bank funding.
As more businesses underserved by banks turn to private financing, the region is set for further growth in private capital over the coming years.
The rise in interest from private capital providers is another key factor contributing to this trend. Historically, companies in the Gulf region have relied on banks, bonds, and sukuk to meet their financing needs.
The S&P report said: “Our analysis of private financing transactions shows that private financiers have expanded their reach over time to provide funding to more mature and established companies, not just those at early development stages. Established companies received 79 percent of private financings in December 2024, up from 31 percent in 2015.”
It added that although these established firms could have easily secured the necessary funding through banks or capital markets, they opted for private financings, which offer faster or more streamlined execution, greater flexibility in terms, or more competitive pricing.
The number of transactions that were financed with private capital peaked at $20.4 billion in 2023, compared with $1.3 billion in 2015, the document noted.
This shift mirrors global trends, with the Middle East emerging as a key growth area for private capital in 2025. Government initiatives and sector reforms are driving this development, positioning private equity and venture capital as leading investment opportunities.
This transition is further exemplified by a rise in regional startup funding, marking a 92 percent increase in capital raised in November alone. These factors are expected to continue driving the growth in private capital financings across the region in the coming years.
The agency emphasized that the sharp decline over 2024 primarily resulted from improving financing conditions in local banking sectors, bond and sukuk markets, and the decline in interest rates. “Even so, the number of transactions in 2024 was still 2.7 times higher than in 2015, which is indicative of the strong fundamentals that underpin the increase in private capital financings,” said the report.
The analysis revealed that GCC issuers, including governments, raised $3.5 trillion over the past decade. It added that bond issuances, which accounted for 51 percent of the total amount raised in 2024, constituted the preferred method of financing, followed by financing from banks, which contributed 26 percent.
“Three other asset classes experienced a significant increase in GCC issuers’ funding mix: Sukuk issuances accounted for 19 percent of the amount raised in 2024, equity capital market transactions — such as IPOs— for 6 percent, and private capital financings for 3 percent,” the study said.
S&P noted that investments were largely concentrated in the most significant deals. Over the past decade, the top 10 transactions represented around 80 percent of the total annual volume of private capital financings.
The agency does not anticipate private capital challenging the role of banks in the GCC region, as the overall volume of private financings remains relatively small.
On the demand side, the report added, private capital financings help early-stage firms become bankable, fueling growth opportunities within the financial ecosystem. Banks are often hesitant to lend to such companies without external support or guarantees.
Regarding supply, regional private capital providers, including sovereign wealth funds, will diversify their geographic exposure to reduce reliance on a single economy, the report said, adding: “GCC investors will remain on the radar of large companies that aim to raise money outside of the traditional banking system or capital markets, especially when interest rates are high.”
