INTERVIEW: A female lawyer at the peak of a man’s world

Illustration by Luis Grañena
Updated 13 October 2019
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INTERVIEW: A female lawyer at the peak of a man’s world

  • Basma Khashoggi is one of a growing number of Saudi women who have chosen the law as their career, and who are changing the perception of the legal profession within Saudi Arabia

DUBAI: The law is a tough profession. In Saudi Arabia, it has its own particular challenges. To be a woman in that environment is especially demanding.

Basma Khashoggi has met those challenges and overcome them. She is head of the Jeddah office of DLA Piper, one of the biggest law firms in the world, and has made it in what for many years was regarded as the ultimate “man’s world.” It all started almost by accident.

“There’s a perception of lawyers that they’re all hard-working and dedicated people, but my ambition really grew out of being bored at school and asking the teachers lots of questions all the time,” she told Arab News.

“The other students called me ‘the lawyer’ because I guess it seemed like I was cross-examining the teachers, and that was the start of it,” she said.

“I have a second cousin who’s a lawyer, but there’s no real tradition of law in my immediate family.”

But Khashoggi had to leave the Kingdom to realize her ambitions. “I went to study in England because at that time law wasn’t taught at Saudi universities to females, and when I came back to Saudi Arabia the Justice Ministry still hadn’t licensed women to be lawyers,” she said.

“But that challenge presented opportunities. In order to progress with my career, I prepared and passed the bar exam in New York. Coincidently, I got licensed six years ago in both jurisdictions in the same month.”

That puts Khashoggi in a unique position to comment on the big changes going on in the Kingdom and in its fast-changing legal system.

She is one of a growing number of Saudi women who have chosen the law as their career, and who are changing the perception of the legal profession within Saudi Arabia.

“I’m by no means the first female lawyer who has had to adapt to a male-dominated industry. The profession is becoming much more comfortable with the idea. The chief legal counsel to the Public Investment Fund (PIF) is a female, for example,” Khashoggi said.

“The clients are also becoming more used to the idea of being served by Saudi female lawyers, which may have not aligned with their previous perceptions of Saudi females.”


BIO

Born: Jeddah

Education

  • University of Essex, bachelor of law.
  • School of Oriental and African Studies, London, master of international and commercial law.
  • New York Bar.

Career

  • Senior legal consultant.
  • DLA Piper, legal director and head of Jeddah office.

Khashoggi is finding it challenging to keep pace with the changes that are rolling across the Kingdom as the Vision 2030 reform plans unfold.

“I guess one of the biggest differences that’s apparent now is that I can drive — except that I don’t. I just haven’t found the time to get a license, but I intend to sometime soon,” she said.

“What I think is more significant about the changes under Vision 2030 is that they’ve been across the board, not just confined to certain sectors. They’ve been economic and financial but also social and cultural, affecting all areas of a citizen’s life,” she added.

“Saudi people are allowed to experience the changes themselves, directly. It feels like it’s part of a much larger plan to transform society, which of course it is.”

Some conservative critics have suggested that the changes are coming too fast for a traditional society, but Khashoggi disagrees.

“I’m from the generation that came just before what’s now the largest demographic, the under 25s. A majority of people now want the changes to take place as quickly as possible,” she said.

“Some people will be opposed to the changes, but I don’t really think they’re in a majority or even a big minority,” she added.

“Young people now have far more access to information, via the internet and social media, than my generation ever had. The Saudi Arabia I grew up with isn’t the one that they’ll know in the future.”

The law has had to adapt fast to keep up with the huge social, cultural and economic changes under way. Can it change fast enough?

“The government is preparing the people for change via different building blocks of the social and economic system, and one of them is legislative reform,” Khashoggi said.

“There have been new laws virtually every month, but it has been an interactive process, designed to get feedback from the public on the proposed changes,” she added.

“For example, we’ve seen legislating via public consultation in the medical field due to its technical nature. Previously, the Health Ministry would go to the pharmaceutical industry to consult about the proposals, but now most ministries will consult all the relevant stakeholders in their respective fields,” she said.

“There has been a raft of new laws in the corporate sector — a bankruptcy law, new company law, procurement law, arbitration and resolution laws. It has been challenging trying to keep up with it all.”

Privatization of the previously dominant government sector has been one of the areas prioritized under Vision 2030, but some critics complain about a lack of progress in selling off state-owned industries. Khashoggi thinks it will all come in time.

“There has been a long period of preparation for new privatization laws, and it’s essential to get this right, so although the law hasn’t been issued, there has been a lot of work going on behind the scenes,” she said.

“There’s already a process in place for privatization in water, electricity, airports, and other parts of the industrial infrastructure,” she added.

“The Saudi Aramco privatization will, I’m sure, have a positive impact on the whole economy and financial scene, but I don’t think the rest of the privatization program is dependent on that.”

It all makes for a booming legal sector, and DLA Piper — which operates in the Kingdom in partnership with local law firm Amer Al-Amr — is well placed to take advantage of that.

“I think hospitality, health care and education are likely areas under the transformation plans, and will see early activity as a direct result of the demographic makeup of the Kingdom,” Khashoggi said.

“In education, for example, there will be consolidation as a national scheme is rolled out across the Kingdom. People who own one or maybe two schools will want to merge them with other bigger groups, and there will be a significant increase in M&A (mergers and acquisitions) activity. The same applies to hospitals,” she added.

“There will also be an increase in foreign investment into these areas and some of the other big projects. An international law firm like DLA Piper is well placed to benefit from the opportunities this will present.”

One contentious area has been the idea that the huge megaprojects — such as Neom, the Red Sea Development and Al-Qiddiya leisure park — will be governed by a semi-autonomous legal infrastructure outside the Kingdom’s Shariah system.

“I have no direct knowledge of this, and I think the legal setup of these projects is still being considered, but due to the fundamental changes occurring to the existing legal structure of the Kingdom, I doubt autonomy to be granted across the board will be necessary,” Khashoggi said.

“It’ll probably be on a project-by-project basis, to ensure that these new areas are governed separately and properly,” she added.

“I don’t think it’ll be an issue if the plans are well thought through. I don’t think they’ll have an entirely separate legal structure,” she said.

“There’s precedent here, with the industrial cities and other special economic zones that have been set up already, which have case-by-case variations from the existing structure, but to a lesser scale.”

Saudi Arabia’s big drive is to encourage foreign investors to back its ambitious plans, and confidence in the legal system is essential to attract that.

“I think what potential foreign investors in Saudi Arabia want is evidence that the law is being applied impartially, and clarity on what the law is, much the same as in any jurisdiction,” Khashoggi said.

“The recent changes in the legal structure, in my view, shed more light on the legal structure. More law means more transparency, and that’s what foreign investors want.”

The law, like many areas of life in Saudi Arabia, is changing so fast that the people involved in the transformation — such as Khashoggi — often do not have time to take a breath.

“Without a doubt, the biggest challenge I face is the work-life balance. I’m always trying to juggle the needs of clients with my own,” she said. “But it’s a good problem to have — it means I’m busy.”


SABIC, Almarai, SEC able to absorb fuel price hike: S&P Global

Updated 09 January 2025
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SABIC, Almarai, SEC able to absorb fuel price hike: S&P Global

RIYADH: Major Saudi companies, including chemical company SABIC, dairy firm Almarai, and Saudi Electric Co., are well-positioned to handle the impact of higher fuel and feedstock prices introduced on Jan. 1, according to a new report.

Released by capital market economy firm S&P Global, the analysis reveals that those corporates will be able to absorb the marginal increase in production costs by further improving operational efficiencies as well as potentially via pass-through mechanisms.

This came after Saudi Aramco increased diesel prices in the Kingdom to SR1.66 ($0.44) per liter, effective Jan. 1, marking a 44.3 percent rise compared to the start of 2024. The company has kept gasoline prices unchanged, with Gasoline 91 priced at SR2.18 per liter and Gasoline 93 at SR2.33 per liter.

Despite the hike, diesel prices in Saudi Arabia remain lower than those in many neighboring Arab countries. In the UAE and Qatar, a liter of diesel is priced at $0.73 and $0.56, respectively, while in Bahrain and Kuwait, it costs $0.42 and $0.39 per liter.

“For SABIC and Almarai, the increase in feedstock prices will not affect profitability significantly. In the case of utility company, SEC, additional support will likely come from the government if needed,” the report said.

The capital market economy firm projects that SABIC will continue to outperform global peers on profitability.

“We don’t expect the rise in feedstock and fuel prices to materially affect profitability, since the company estimates it will increase its cost of sales by only 0.2 percent,” the report said.

It further highlighted that SABIC is considered a government-related entity with a high possibility of receiving support when needed.

The report also underlines that Almarai anticipates an additional SR200 million in costs for 2025, driven by higher fuel prices and the indirect effects of increased expenses across other areas of its supply chain.

“We believe Almarai will continue focusing on business efficiency, cost optimization, and other initiatives to mitigate these impacts,” the release stressed.

With regards to SEC, S&P said that an unrestricted and uncapped balancing account provides a mechanism for government support, including related to the higher fuel costs.

“We believe any increased fuel cost will be covered by this balancing account,” the report said.

The study further highlights that the marginal increase “could significantly affect wider Saudi corporations’ profit margins and competitiveness.”

The S&P data also suggests that additional costs will be reflected in companies’ financials from the first quarter of 2025.

“Saudi Arabia is continuing its significant and rapid transformation under the country’s Vision 2030 program. We expect an acceleration of investments to diversify the Saudi economy away from its reliance on the upstream hydrocarbon sector,” the report said.

“The sheer scale of projects — estimated at more than $1 trillion in total — suggests large funding requirements. Higher feedstock and fuel prices would help reduce subsidy costs for the government, with those savings potentially redeployed to Vision 2030 projects,” it added.


Lenovo to produce ‘Saudi Made’ PCs by 2026 following $2bn Alat deal closure

Updated 09 January 2025
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Lenovo to produce ‘Saudi Made’ PCs by 2026 following $2bn Alat deal closure

RIYADH: Chinese tech giant Lenovo is set to manufacture millions of computer devices in Saudi Arabia by 2026, following the completion of a $2 billion investment deal with Alat, a subsidiary of the Public Investment Fund. 

First announced in May, the partnership has now received shareholder and regulatory approvals, paving the way for Lenovo to establish a regional headquarters and a manufacturing facility in the Kingdom. 

The deal marks a significant step in aligning Lenovo’s growth ambitions with Saudi Arabia’s Vision 2030 goals of economic diversification, innovation, and job creation, the company said in a press release. 

The factory will manufacture millions of PCs and servers every year using local research and development teams for fully end-to-end “Saudi Made” products and is expected to begin production by 2026, it added. 

“Through this powerful strategic collaboration and investment, Lenovo will have significant resources and financial flexibility to further accelerate our transformation and grow our business by capitalizing on the incredible growth momentum in KSA and the wider MEA region,” Yang said. 

He added: “We are excited to have Alat as our long-term strategic partner and are confident that our world-class supply chain, technology, and manufacturing capabilities will benefit KSA as it drives its Vision 2030 goals of economic diversification, industrial development, innovation, and job creation.” 

Amit Midha, CEO of Alat, underscored the significance of the partnership for both Lenovo and the Kingdom. 

“We are incredibly proud to become a strategic investor in Lenovo and partner with them on their continued journey as a leading global technology company,” said Midha. 

“With the establishment of a regional headquarters in Riyadh and a world-class manufacturing hub, powered by clean energy, in the Kingdom of Saudi Arabia, we expect the Lenovo team to further their potential across the MEA region,” he added. 

The partnership is expected to generate thousands of jobs, strengthen the region’s technological infrastructure, and attract further investment into the Middle East and Africa, according to the press release. 

In May, Lenovo raised $1.15 billion through the issuance of warrants to support its future growth plans. The initiative, which was fully subscribed by investors, signals confidence in Lenovo’s strategic approach and its plans for global expansion. 

The investment deal was advised by Citi and Cleary Gottlieb Steen & Hamilton for Lenovo, while Morgan Stanley and Latham & Watkins represented Alat. 


Lebanon’s bonds climb as parliament elects first president since 2022

Updated 09 January 2025
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Lebanon’s bonds climb as parliament elects first president since 2022

LONDON: Lebanon’s government bonds extended a three-month long rally on Thursday as its parliament voted in a new head of state for the crisis-ravaged country for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and the move boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.

Lebanon’s battered bonds have almost trebled in value since September when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming the country’s political paralysis.

Most of Lebanon’s international bonds, which have been in default since 2020, rallied after Aoun’s victory was announced to stand between 0.8 and 0.9 cents higher on the day and at nearly 16 cents on the dollar.

They have also risen almost every day since late December, although they remain some of the lowest priced government bonds in the world, reflecting the scale of Lebanon’s difficulties.

With its economy still reeling from a devastating financial collapse in 2019, Lebanon is in dire need of international support to rebuild from the war, which the World Bank estimates to have cost the country $8.5 billion.

(Reporting by Marc Jones and Karin Strohecker Editing by Gareth Jon


Closing Bell: Saudi main index closes in green at 12,097

Updated 09 January 2025
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Closing Bell: Saudi main index closes in green at 12,097

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 9.01 points, or 0.07 percent, to close at 12,097.75. 

The total trading turnover of the benchmark index was SR7.48 billion ($1.99 billion), as 96 stocks advanced, while 133 retreated.    

The MSCI Tadawul Index decreased by 3.28 points, or 0.22 percent, to close at 1,510.14. 

The Kingdom’s parallel market, Nomu, surged, gaining 251.24 points, or 0.82 percent, to close at 31,027.39. This comes as 56 of the listed stocks advanced, while 32 declined. 

The best-performing stock was Nice One Beauty Digital Marketing Co. for the second day in a row, with its share price increasing by 7.69 percent to SR49. 

Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise by 6.5 percent to SR14.74, and Abdullah Saad Mohammed Abo Moati for Bookstores Co., which saw a 4.42 percent increase to SR35.45. 

Arabian Pipes Co. and Dr. Sulaiman Al Habib Medical Services Group also saw positive change with their share prices moving up by 4.10 percent and 3.89 percent to SR12.70 and SR298.80, respectively. 

The worst performer of the day was Salama Cooperative Insurance Co., whose share price fell by 5.88 percent to SR19.52. 

Almoosa Health Co. and Al Hassan Ghazi Ibrahim Shaker Co. also saw declines, with their shares dropping by 5.13 percent and 3.91 percent to SR133.20 and SR28.25, respectively.   

On the announcements front, Riyad Bank declared its intention to fully redeem its $1.5 billion fixed-rate reset tier 2 sukuk, issued in February 2020, on Feb. 25, 2025.  

According to a Tadawul statement, the sukuk originally maturing in 2030, will be redeemed at face value in accordance with the terms and conditions. The redemption, approved by the regulators, will include any accrued but unpaid periodic distributions.  

On the redemption date, Riyad Sukuk Limited will deposit the full amount into the accounts of sukuk holders, marking the completion of the issuance. This redemption will conclude the sukuk’s life, with no remaining value post-redemption. 

Riyad Bank ended today’s trading session edging up by 0.91 percent to SR27.85.


Rotana eyes growth in smaller Saudi cities amid hospitality expansion

Updated 09 January 2025
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Rotana eyes growth in smaller Saudi cities amid hospitality expansion

RIYADH: Rotana Hotels is turning its attention to smaller cities in Saudi Arabia as part of its ambitious growth strategy to strengthen its presence in the Kingdom. 

Speaking on the sidelines of the third Saudi Tourism Forum, the firm’s Chief Operating Officer Eddy Tannous told Arab News the company is engaging with tourism authorities, development funds, and private investors to explore opportunities in emerging destinations such as Al-Baha and Asir.

Rotana has previously announced its plans to develop nine new properties in Saudi Arabia, five of which are scheduled to open in 2025. This follows the launch of three hotels in 2024, including Nova M, the first Edge by Rotana property, as well as Dar Rayhaan by Rotana in Alkhobar and Al Manakha Rotana in Madinah.

Tannous said: “We have development on properties that will probably open in the next, I want to say, two to five years. Probably six to eight properties in those tertiary cities where it’s becoming a destination that people want to go to as well.”

With Saudi Arabia ranking third globally for international tourist arrival growth in 2024, with a 25 percent increase compared to the previous year, the Kingdom’s hospitality sector is seeing rapid growth.

The company’s goal is to triple its current key count in the Kingdom to 6,000 within the next three years, bolstered by strong demand for hospitality services.

Rotana’s upcoming developments, including Yasmina Rayhaan by Rotana in Riyadh, aim to meet this increasing demand.

“We are a regional brand. We are a brand that grew up in this region, so Saudi Arabia has always been a focus for us. But I think with the announcement of Vision 2030, it became more of a catalyst for us to continue focusing on Saudi Arabia,” Tannous said.

He added: “Saudi Arabia is the region or is the country in this Middle East region that’s growing the fastest and that’s growing with the biggest magnitude from a hospitality standpoint. Our main focus in Saudi Arabia is to focus both on the government sector projects and individual investors.”

Rotana’s expansion strategy is also geared toward major international events, including Saudi Arabia’s hosting of the FIFA World Cup in 2034. This event is expected to attract millions of visitors, creating significant opportunities for the hospitality sector.

Commenting on the company’s plans, Rotana CEO Philip Barnes said in a press release: “We see tremendous potential for expansion in Saudi Arabia. Our ambitious pipeline for KSA underscores our commitment to the hospitality and tourism sectors, both in the Kingdom and regionally, as demand for business and leisure travel soars to new heights in anticipation of major events such as the FIFA World Cup 2034.”

Beyond Saudi Arabia, Rotana is expanding across the Middle East, Africa, Eastern Europe, and Turkiye, where it currently operates 81 properties. The company has a pipeline of 36 new properties in 22 cities, including its projects in Saudi Arabia.

Rotana is also strengthening its presence in key markets such as the UAE, Turkiye, and Africa, where demand for leisure and business travel is on the rise.

“As a company today, we run 86 properties in the world. Some of our source markets to Dubai and Abu Dhabi, which are two of our biggest markets, include the UK, Germany, and Russia,” Tannous said.

Rotana is also preparing for significant updates to its loyalty program, which are expected to be announced later this year — although details remain under wraps.

“It’s not something I can talk about today, but we will hopefully in 2025,” Tannous said. “The most exciting thing for me right now is what we’re doing on our loyalty program because that will open the door for bank partnerships, credit card partnerships, airline partnerships.”

Rotana’s expansion in Saudi Arabia and beyond reflects its commitment to meeting the growing demand for hospitality services while positioning itself as a leader in both regional and international markets.