Haifa Fahoum Al-Kaylani: The development economist and women’s rights advocate making a difference

Haifa Al-Kaylani, founder and chairman of the Arab International Women’s Forum.
Updated 06 March 2018
Follow

Haifa Fahoum Al-Kaylani: The development economist and women’s rights advocate making a difference

LONDON: Development economist Haifa Fahoum Al-Kaylani has a well-deserved international reputation for her commitment to empowering women. She is unusual in having access at the highest levels to governments, business and NGOs globally.
“It is important to work with the public and private sector and civil society to achieve accessibility, progress and peace and provide opportunities for the future,” she said.
As the founder and chairman of the Arab International Women’s Forum she has driven major initiatives to help women in the MENA region achieve equality and parity in the workplace, whether as high flying executives in blue chip companies or hard toiling agricultural laborer. She is constantly working to improve legislative protection for women, open up educational pathways and foster cultural shifts that allow women to fulfil their roles both career wise and in their roles as mothers and nurturers of the next generation.
She takes a positive view of what has been achieved to date and emphasized that it is important to acknowledge progress as “it comes on the back of a lot of effort by women themselves and others in the community.”
She noted: “Over the last year I have seen a lot of progress in the Arab world in women’s leadership. We have seen women assuming high level positions in the private sector, in government and in the judiciary and legislature. Our region is leading the way in technology and women are very much involved in the tech business, benefitting from the innovation and driving new projects and setting up SMEs.”
With reference to the Tech Sector, Al-Kaylani pointed to a recent initiative undertaken in Lebanon.
“In Lebanon the Central Bank has given a guarantee to the commercial banks to grant loans to viable tech projects by young entrepreneurs. This is unusual as the Central Bank would normally focus on running the monetary and fiscal policies but this new measure is to support what they believe can be a vibrant tech sector driven by young enterprise.”
She also pointed to important measures introduced to protect women.
“Looking at the region, we have seen legal reforms, especially in Lebanon, Jordan and Tunisia, to protect women from domestic violence. Egypt also passed a law granting women inheritance rights on an equal basis with men. The UAE is leading the way on maternity rights for mothers and the recently launched Ministry of Happiness and Wellbeing is outstanding.
“Jordan recently appointed its first female judge, Ihsan Zuhdi Barakat, to the Supreme Court.
With reference to Saudi Arabia, she said: “We have seen young women graduating with outstanding accomplishments across all fields of study. They are attaining success at the highest levels including within the Consultative Assembly. They have been moving forward very well in their roles in the economy and in education and it is welcome that they are now able to attend public events in sports and be legally empowered to drive. A lot is happening – all indicators of positive change. Women are keen to play their role in the economic development of Saudi Arabia as outlined in the very valuable 2030 Vision of HRH Crown Prince Mohammed bin Salman.”
While recognizing the significant progress that has been made, Al-Kaylani is clear that there are many challenges that must be faced and overcome.
“The region needs to bridge the gender gap which includes promoting financial incentives and support for women. Finance remains a barrier. We still need to promote technological literacy and improve the infrastructure. We need to focus on capacity building and to build on advocacy to reshape cultural attitudes as we still suffer from certain societal and cultural norms. We need to inspire women’s self-belief in themselves. This is crucially important”, she said.
Al-Kaylani believes that female role models have a major impact in driving change within society that is beneficial to women.
“We need more visible role models. Active, vibrant, dynamic, accomplished role models are extremely important – they help to change mindsets and inspire the younger generations,” she said.
She recalled: “I remember from our many events over the years that young women, especially those from the UAE, would say that Sheikha Lubna Qasimi was their inspiration.
“They all wanted to be like Sheikha Lubna – and she remains a trailblazer. She was the first woman to hold a cabinet position in the UAE and with so many accomplishments.”
She wants to see a culture in which the rights of women are recognized and embedded in law.
“We need to move ahead with reforming the laws in the region to give women equal pay for equal work, more maternity leave and acknowledge the work as homemakers. This is very important to secure the legal provisions that guarantee the rights of women as full members of society,” she said.
Last December, as part of its Young Arab Women Leaders initiative, following on from the successful Young Arab Women Leaders conferences held across the MENA region, AIWF partnered with the Royal Academy of Engineering, the World Bank and PwC, in London, to promote women-led innovation in STEM (Science, technology, engineering and mathematics).
Al-Kaylani, who hosted and chaired the conference, noted the valuable participation of the Saudi scientist Hyat Sindi, who is an Adviser on Science, Technology and Innovation to the President of the Islamic Development Bank in Jeddah.
Al-Kaylani serves as a Fellow of the Harvard Advanced Leadership Initiative 2017, and as a Commissioner on the ILO Global Commission on the Future of Work. Her commitments see her travelling constantly, always with the aim of using her talents to make a difference.
She is clear about what she brings to the table.
“At heart I am a Development Economist through and through. Wherever I see an angle where I can add value, especially as an Arab woman with roots in the region as well as being a global citizen, I participate. I focus on where I see an impact that will create economic growth, development and equality of opportunity – breaking stereotypes. I am also at heart a bridge builder and wherever I see a chance to build better understanding of my region and the Middle East, I am proud to serve,” she said.
Her latest initiative is in the field of Sustainable Agriculture. She has just launched a project to develop a Social Enterprise that will provide an innovative model for sustainable development through agriculture across the MENA region. The project, based in Jordan, will introduce 21st Century technology and innovation to the oldest industry in the world – farming.
As she stated in a recent speech at Harvard: “Many countries in the Middle East are considered both water and food insecure. This problem is exacerbated by climatic changes, scarcity of water resources and the challenges the region is encountering in absorbing the huge flux of refugees from Syria.
“The population of Arab States is expected to reach 487 million by the year 2025 and food production will have to increase by 70 percent in order to sustain the growing population.
“The looming scarcity of water in the Middle East is a huge challenge that requires an urgent response, as access to water is a fundamental need for food security, human health and agriculture.”
The project in Jordan is intended to be scaled-up and replicated across the wider MENA region in the years to come.
At the conclusion of the interview, Arab News asked Al-Kaylani, to describe the qualities and outlook that enable people to create positive change. A positive approach, she said, is key.
“You cannot make any difference in this world or move any agenda forward without a positive, determined, well informed and well researched approach.
“Over my 30-year career, it’s been a learning process for me throughout and also an opportunity to exchange and engage with others – to give and receive. I have always tried to work on common agendas that have an impact on improving peoples’ lives.”


Saudi Arabia unveils 38% spending increase in 2025 budget to drive Vision 2030 progress

Updated 26 November 2024
Follow

Saudi Arabia unveils 38% spending increase in 2025 budget to drive Vision 2030 progress

RIYADH: Saudi Arabia has increased government spending by 38 percent in its 2025 budget, reflecting the Kingdom’s commitment to achieving the objectives of Vision 2030.

The announcement was made by Finance Minister Mohammed Al-Jadaan following the budget’s approval.

Al-Jadaan explained that the 2025 budget is designed to continue strategic investments in developmental projects, aligning with sectoral strategies and programs under Saudi Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for the fiscal year 2025, with projected revenues of SR1.18 trillion ($315.73 billion) and expenditures of SR1.28 trillion, resulting in a deficit of SR101 billion.

The minister emphasized that the government remains dedicated to projects that promote sustainable economic, social, and environmental benefits. These include improving the business environment, boosting the trade balance, and increasing both local and foreign investments.

“We identified that the nominal GDP has achieved greater growth from 2015 to 2023,” Al-Jadaan said during a press conference on the budget.

He also highlighted the growing contribution of non-oil sectors to the country’s GDP. “The contribution of non-oil activities to the gross domestic product increased from approximately 47 percent in 2016 to around 52 percent by the end of the first half of 2024,” Al-Jadaan noted, adding that such a shift was “extremely challenging to achieve within six years, as structural economic transformation does not occur in one or two years.”

The finance minister reaffirmed that the government continues to prioritize citizens' basic needs, with a focus on education, health, and social services. “There is a continued approach of planned expansion by the government to improve services provided to citizens and enhance the quality of these services. This expansion focuses on accelerating strategies with significant economic impact on jobs, business opportunities, and the sustainability of the Saudi economy,” he said.

He also reiterated the government’s commitment to completing ongoing projects, integrating technology and infrastructure into the broader economic system.

Al-Jadaan expressed optimism regarding the Kingdom’s economic indicators. “Economic indicators call for optimism, and non-oil GDP helped (overall) GDP continue to grow,” he remarked.

The minister clarified that the projected deficit in the 2025 budget aligns with the government’s financial planning framework, stating that Saudi Arabia plans to continue both local and international financing operations to cover the deficit and meet its debt obligations.

He also noted that the Kingdom is focusing on alternative financing methods to bolster economic growth, particularly through strategic spending on Vision 2030 programs. “The 2025 budget aims to maintain the Kingdom’s financial position and achieve fiscal sustainability by preserving manageable public debt levels and substantial government reserves,” Al-Jadaan explained.

“Debt levels in Saudi Arabia remain lower than those of most countries in the G20,” he added.

Al-Jadaan confirmed that government reserves are expected to remain stable at around SR390 billion by the end of 2025.

The finance minister also discussed the role of various sectors in driving economic growth. “The industrial sector is extremely important for several reasons, the foremost being national security. Having a robust industrial base means reducing exposure to external risks,” he said.

He further emphasized that exports and job creation within the industrial sector enhance the country’s balance of payments and support the broader economy.

Al-Jadaan highlighted tourism as another key sector contributing to job creation and economic stability. “Tourism, both in Saudi Arabia and globally, is one of the largest sectors contributing to job creation in the economy. It is also among the key sectors that significantly support the balance of payments,” he said. He noted that investments are being directed towards tourism projects and services across the Kingdom.

The transportation and logistics sectors were also emphasized as essential to the Kingdom's economic future. Al-Jadaan pointed out that a robust logistics infrastructure is crucial for the success of the industrial sector. “The transportation and logistics sector also has direct benefits, including the creation of logistics hubs that capitalize on Saudi Arabia’s central location, connecting three continents and serving as a strategic global crossroads,” he stated.

Turning to the energy sector, Al-Jadaan clarified that Saudi Arabia’s energy strategy encompasses much more than oil. “When discussing the energy sector, I am not referring solely to oil. I am speaking about the broader concept of energy, including renewable energy, gas, gas networks, and their delivery to industrial zones across the Kingdom,” he said.

He also discussed progress in the military sector, noting that the Ministry of Defense has completed its 10-year plan, with implementation already underway.

“The military sector has seen significant progress, with the Ministry of Defense completing its 10-year plan and the military sector now moving forward with its implementation,” Al-Jadaan explained.

Addressing the broader global economic landscape, Al-Jadaan assured that the Kingdom is maintaining stability despite external challenges. “Inflation in the Kingdom is under control despite its rise globally,” he said.

On public finances, the finance minister highlighted the role of Saudi Aramco in supporting government revenue. “Public finances in Saudi Arabia receive main sources of revenue, one of which comes from oil through the Aramco company. The first source is called the ‘royalty,’ which is a well-established concept with international standards. In Saudi Arabia, the royalty rate is set at 15 percent of Aramco’s oil sales,” he said. He also pointed out that Aramco is required to remit 50 percent of its profits to the government.

Al-Jadaan also touched on government efforts to control fuel prices, stating that billions are being spent to prevent price hikes. “When the Saudi government listed Aramco shares on the financial market, it had several objectives, all of which have been achieved. These included enhancing transparency, monetizing some of these assets, and utilizing the proceeds to support ongoing economic initiatives,” he said.

Finally, when discussing major infrastructure projects such as NEOM, Qiddiya, Diriyah Gate, and the Red Sea Project, Al-Jadaan emphasized that these initiatives have dedicated companies with their own budgets. “These companies have budgets allocated from the sovereign fund, not from the public treasury. They spend based on these budgets and they’re held accountable accordingly,” he stated.

Addressing inflation, Al-Jadaan clarified: “There is no officially targeted inflation rate in Saudi Arabia. However, globally, an inflation rate of 2 percent or 3 percent is considered acceptable.”

In conclusion, Al-Jadaan reaffirmed that the Saudi economy remains on a positive trajectory thanks to the government’s proactive policies and long-term planning, positioning the Kingdom to navigate both local and global challenges effectively.


Saudi Arabia’s Diriyah Co. set to attract new wave of investors with $500m ticket sizes

Updated 26 November 2024
Follow

Saudi Arabia’s Diriyah Co. set to attract new wave of investors with $500m ticket sizes

RIYADH: Saudi Arabia’s Diriyah Co. is attracting a new wave of global investors with potential ticket sizes of $500 million or more, according to the company’s investment head. 

Speaking to Arab News during the World Investment Conference in Riyadh, Chief Investment Officer Jonathan Robinson revealed ongoing discussions with international investors spanning Asia, Europe, the Americas, and the Middle East, signaling an unprecedented level of global interest in the company’s projects. 

“How many investors? We have dozens of live conversations, dozens, so we’re not talking one or two and we’re not talking one or two in any particular jurisdiction. We have conversations going across all these jurisdictions,” Robinson revealed.  

“What’s the size? I think look, you know, we’re probably talking about investments, certainly in the $500 million and up. So it’s a good size, with international investors across multiple continents to come in, in a way, as a co-investor that I don’t think we’ve really seen in terms of breadth and depth or scale so far in the giga-project. So this is an exciting time. It is very real. And I think you will see those kinds of announcements coming out of Diriyah in the coming months,” he added. 

“We have live conversations today, with investors in Asia, with investors in Europe, with investors in the Americas, as well as the many conversations that are ongoing across the region and including, of course, in Saudi Arabia,” Robinson said. 

“I think in the coming months, you will see us make some pretty exciting announcements about partnerships with that global investor space. And that’s going to be groundbreaking in some respects. Not just for Diriyah, but potentially even for the Kingdom of Saudi Arabia, where you’re going to see a real level of participation joining us as partners and joint ventures in funds, through sole developer, co-developer models, where you’re going to see us partnering with some pretty new names,” Robinson said. 

He elaborated on the breadth of investor engagement, highlighting that these partnerships will involve new and established players in Saudi Arabia. 

“Some of them will be new names to the Kingdom. Some of them will be existing investors in the Kingdom but looking to step up that game. We’re moving our execution model now to one that’s really engaging with the private sector on this global scale, and those are very live conversations today,” Robinson explained. 

“I think you will see coming out of Diriyah in the coming months, certainly into the first quarter of next year, we’ll be in a position to make some pretty big announcements. And those will include investors coming from all three continents,” he added. 

Robinson described the initiative as a groundbreaking development for Saudi Arabia’s giga-projects. “I think it’s groundbreaking, first and foremost, that we’re bringing foreign investors in to co-invest in some of our giga-projects. That is groundbreaking. It’s been done at some level through operating companies and what have you, but as investors to co-invest in the development, ownership, operation, that will be groundbreaking,” he said. 


Saudi Arabia, Iraq, and Russia reaffirm OPEC+ production cuts commitment

Updated 26 November 2024
Follow

Saudi Arabia, Iraq, and Russia reaffirm OPEC+ production cuts commitment

RIYADH: Saudi Arabia, Iraq and Russia on Tuesday emphasized the importance of fully committing to the OPEC+ oil supply agreement, including voluntary production cuts agreed by eight member states and measures to compensate for any increases in production, the Saudi Press Agency reported.

According to SPA, a trilateral meeting was held this morning in Baghdad, Iraq’s capital, which was attended by Saudi Energy Minister Prince Abdulaziz bin Salman, Russian Deputy Prime Minister Alexander Novak and Ali Maarij Al-Bahadli, Iraq’s director of distribution affairs at the Ministry of Oil.

The participants reaffirmed the significance of continued cooperation among OPEC+ countries and their full commitment to the voluntary agreements and production cuts, including those agreed upon by the eight countries, as well as compensating for any production increases.

Al-Bahadli reiterated Iraq’s determination to fully adhere to the agreement, voluntary cuts, and compensation for any production increase, in line with the updated schedule submitted by Iraq to the OPEC Secretariat.

Oil prices rose on Tuesday, steadying after falling more than $2 a barrel in the previous session on reports of a potential ceasefire between Israel and Lebanon’s Hezbollah.

Brent crude futures were up 53 cents, or 0.7 percent, at $73.54 a barrel as of 1231 GMT. US West Texas Intermediate crude futures were at $69.46 a barrel, up 52 cents, or 0.75 percent.

Prices fell sharply on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict. A senior Israeli official said Israel looks set to approve a US plan for a ceasefire on Tuesday.


Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending

Updated 26 November 2024
Follow

Saudi Arabia approves FY2025 budget, forecasts $27bn deficit amid expansionary spending

RIYADH: Saudi Arabia on Tuesday approved the state budget for fiscal year 2025 with revenues projected at SR1.18 trillion ($315.73 billion) and expenditure at SR1.28 trillion, leading to a deficit of SR101 billion.

The Finance Ministry forecasted Saudi Arabia’s Real GDP growth at 4.6 percent in 2025, up from the 0.8 percent estimate for 2024. This growth will be driven by a rise in non-oil sector activities, according to the statement.

The figures align with projections from the ministry’s pre-budget statement in September, showing a 4 percent decline in revenues, a 4 percent decline in expenditures, and a 12 percent lower deficit compared to the latest FY 2024 estimates.

The FY2025 forecast are based on a baseline scenario, which represents a middle ground between higher and lower revenue projections, taking into account potential changes in economic activity and global petroleum market conditions.

The ministry projects the deficit to remain at similar levels in the medium term, with SR130 billion in 2026 and SR140 billion in 2027, driven by the government’s strategic expansionary spending policies aimed at fostering economic diversification and sustainable growth. Revenues are expected to rise over the next two years, reaching around SR1.3 trillion by 2027.

The Kingdom’s total debt is projected to reach SR1.3 trillion in 2025, equivalent to 29.9 percent of GDP, reflecting a sustainable level to meet financing needs.

Revised projections for Saudi Arabia’s 2024 budget indicate a deficit of SR115 billion, with total debt expected to reach SR1.2 trillion, or 29.3 percent of GDP.

The fiscal year 2025 budget prioritizes maintaining essential services for citizens and residents, while accelerating spending on key projects and sectors.

It focuses on preserving fiscal stability and achieving long-term sustainability by managing government reserves and maintaining sustainable public debt levels, ensuring the Kingdom’s resilience against unforeseen economic shocks.

In a statement following the weekly Cabinet session, Crown Prince Mohammed bin Salman emphasized the government’s ongoing efforts to strengthen the Kingdom’s economic base. “We will continue to work on expanding the economic base and enhancing the Kingdom’s financial position,” he stated.

He also highlighted the pivotal role of Saudi Arabia’s sovereign wealth funds—the Public Investment Fund and the National Development Fund—in driving economic stability and achieving Vision 2030 objectives. “These funds are essential to diversifying the economy and supporting long-term investments,” he said.

Saudi Arabia’s economy is advancing through strategic reforms and robust investment initiatives under Vision 2030, emphasizing diversification and fiscal sustainability.

Key objectives include increasing the private sector’s contribution to GDP, growing the share of foreign investment, and boosting non-oil exports.

The strategy also prioritizes reducing unemployment and accelerating investment growth by enhancing the business environment, providing innovative financing solutions, and attracting regional headquarters of multinational companies to establish a strong presence in the Kingdom.

Key enablers, including the PIF, are driving private sector growth, launching transformative projects, and fostering new industries.

These efforts, outlined in the 2025 budget statement, aim to boost social and economic outcomes while ensuring resilience against global challenges and long-term prosperity.

Breakdown of projected government revenues and expenditures

The ministry projects tax income at SR379 billion in 2025, making up around 32 percent of total revenues. This represents a 4 percent increase compared to the 2024 estimates. The majority of these levies, accounting for 77 percent, come from taxes on goods and services.

According to the ministry, this growth is driven by sustained improvements in economic activity, the ongoing development of tax administration, and enhanced collection processes, all of which have contributed to a boost in total tax revenues.

In terms of sector-specific expenditures, the military sector received the largest allocation at SR272 billion, marking a 5 percent increase compared to the 2024 estimates.

The health and social development sector followed with a 20.25 percent share amounting to SR260 billion.

General items with 14.95 percent share of 2025 budgeted expenditures will be allocated SR192 billion.

Financing the deficit

The Ministry of Finance, in collaboration with the National Debt Management Center develops an annual borrowing plan aligned with the Kingdom’s medium-term debt strategy, ensuring long-term debt sustainability.

This strategy not only diversifies financing sources, encompassing both domestic and external markets, but also enhances the Kingdom’s standing in global debt markets.

Additionally, the government is expanding its financing channels by tapping into bond and sukuk issuance, loans, and alternative funding models like project and infrastructure financing, as well as collaborating with export credit agencies.

According to the Ministry of Finance, the Kingdom maintains a robust fiscal position, underpinned by substantial financial reserves and manageable public debt levels.

This fiscal strength provides the government with the ability to manage potential economic shocks and meet its financing needs across short, medium, and long-term horizons, while securing favorable borrowing terms from both domestic and international markets.

The crown prince also reaffirmed the government’s commitment to fiscal reforms that have already improved Saudi Arabia’s credit ratings. While the projected deficit for 2025 signals short-term fiscal challenges, the government is focused on ensuring long-term economic sustainability.

He noted that this year’s budget will continue to prioritize economic diversification, with significant emphasis on empowering the private sector and fostering growth in small and medium-sized enterprises.

The crown prince stressed that, despite global economic uncertainties, Saudi Arabia is well-positioned to navigate external challenges and play an increasingly central role in regional and global economic stability.

“Our economy is well-prepared to overcome challenges,” he said.

He also emphasized the importance of long-term financial planning to maintain momentum on Vision 2030 initiatives, underscoring the government's focus on spending efficiency and transparent execution of the budget to meet its strategic goals.

Moody’s upgraded Saudi Arabia’s credit rating to “Aa3” from “A1” on Friday, highlighting the country’s progress in diversifying its economy beyond oil.

The Kingdom is investing heavily in Vision 2030 initiatives, focusing on sectors like tourism, sports, and manufacturing, while also attracting foreign investment.

Despite lower oil prices and reduced production, Saudi Arabia continues to adjust its spending, delaying or scaling back some Vision 2030 projects while prioritizing others.

Moody’s revised the country’s outlook to stable, reflecting uncertainties in global economic conditions and the oil market. In September, S&P also upgraded Saudi Arabia’s outlook to positive due to strong non-oil growth.


Closing Bell: Saudi main index closes in red at 11,736 

Updated 26 November 2024
Follow

Closing Bell: Saudi main index closes in red at 11,736 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, with the index shedding 51.65 points to close at 11,736.07. 

The total trading turnover of the benchmark index was SR5.15 billion ($1.37 billion) with 54 of the listed stocks advancing, while 179 declined.

The Kingdom’s parallel market Nomu also slipped by 0.85 percent to 30,602.83, while the MSCI Tadawul Index inched down by 0.22 percent to 1,474.39.  

The best-performing stock on the main market was Riyadh Cables Group Co., with its share price surging by 7.56 percent to SR128.  

Media giant MBC Group’s share price soared by 6.83 percent to SR50.80, while the stock price of Elm Co. increased by 4.03 percent to SR1,105.  

Conversely, the share price of Jadwa REIT Saudi Fund slipped by 5.12 percent to SR10.38.  

On Nomu, the top gainer was Miral Dental Clinics Co. The firm’s share price increased by 14.63 percent to SR113.60. 

In announcements, the Saudi Investment Bank stated that it has completed the debut offering of its $750 million dollar-denominated Tier 1 Sustainable Sukuk, issued under its $1.5 billion Additional Tier 1 Sukuk Program. 

The bank confirmed that the offering will be settled on Nov. 27, and the sukuk will be listed on the London Stock Exchange’s International Securities Market. 

SAIB’s share price rose by 0.57 percent on Tuesday, closing at SR14.04. 

Saudi Reinsurance Co. announced that it has received approval from the Kingdom’s Capital Market Authority to increase its capital by offering 26.73 million shares, while suspending preemptive rights, at a value of SR427.68 million. 

The reinsurance firm’s share price increased slightly by 0.11 percent to SR45.50. 

Tamkeen Human Resources Co. stated that it will begin trading on Saudi Arabia’s main market on Nov. 27. 

The daily and static fluctuation limits for the company’s stocks will be set at 30 percent and 10 percent, respectively, during the first three days of trading. 

From the fourth day, the daily price fluctuation limits will revert to ±10 percent, and the static price fluctuation limits will no longer apply.