RIYADH: Robust revenue cycle management systems will be essential for Saudi Arabia’s new health care model, KPMG said in a report.
The Kingdom’s Ministry of Health (MoH) is transitioning from being an all-in-one payer, provider and regulator of health services to becoming a regulator, governing corporate payers and providers.
A key aspect of this transformation is the separation of the payer and the provider functions in the public health care sector, KPMG said. To facilitate future reimbursement to public health care providers, the Ministry of Health has set up the Program for Health Assurance and Purchasing (PHAP).
In addition, the Council of Cooperative Health Insurance (CCHI) has also firmed up regulations for private insurers.
With the introduction of mandatory health insurance underway in the public sector in the Kingdom and the wish to standardize across the public and private sector, Saudi health care providers will need to develop new capabilities to be able to generate revenue under the new reimbursement system, KPMG reported.
“One of the key implications for health care providers of this introduction is the transformation of how health care service providers are reimbursed. Providers will primarily be paid on a per-patient basis, rather than via allocated budgets from the government,” said Emmeline Roodenburg, head of health care at KPMG in Saudi Arabia.
Patient acceptance and registration; billing and claims management; patient treatment and documentation; and coding and grouping are the four key operational elements of the Revenue Cycle Management (RCM) under the new mechanism.
While the risks that come with having a poor RCM function can be managed and mitigated, if they are left unchecked then the consequences could include revenue losses and fines for inaccurate invoicing, KPMG said.
Revenue management systems key to success of Saudi health reforms says KPMG
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Revenue management systems key to success of Saudi health reforms says KPMG
- The Kingdom’s Ministry of Health (MoH) is transitioning from being an all-in-one payer, provider and regulator of health services to becoming a regulator
Saudi Arabia’s PIF to acquire 54% stake in MBC Group
- Share price of MBC Group increased by 9.98% to SR45.75
- Its net profit for the second quarter witnessed a rise of 66.5% to SR116.4 million
RIYADH: Saudi Arabia’s sovereign wealth fund is set to acquire a 54 percent stake in media giant MBC Group for SR7.46 billion ($1.99 billion).
In a bourse filing, MBC Group, listed on the Kingdom’s main market, said that it was notified by Istedamah Holding Co., one of its major shareholders, on the finalization of a sale and purchase agreement with the Public Investment Fund on Nov. 1.
According to the agreement, Istedamah will sell its entire stake in MBC, valued at 179.55 million shares, representing 54 percent of the company’s total capital, to PIF through a private transaction.
Touted to be Saudi Arabia’s economic engine, PIF is spearheading the Kingdom’s Vision 2030 journey by making strategic investments in various sectors.
Some prominent telecom, media, and technology firms backed by the wealth fund include Saudi Co. for Artificial Intelligence, Saudi Information Technology Co., Elm Co., and Saudi Telecom Co.
“The completion of the transaction is subject to a number of conditions, including obtaining the necessary approvals and non-objections that might be required from the relevant entities,” said MBC Group.
It added: “The transaction will be executed as a negotiated deal in accordance with the Saudi Exchange’s trading and membership procedures at the completion of the transaction.”
Followiing the announcement, the share price of MBC Group increased by 9.98 percent to SR45.75 as of 11:.37 a.m. Saudi time.
Established in 1991 and formerly known as the Middle East Broadcasting Center, MBC Group currently owns several television channels, including Al Arabiya, MBC Max, and MBC Bollywood, as well as the OTT platform Shahid.
In August, the media giant said its net profit for the first six months of this year surged 359.8 percent to SR237.8 million compared to the same period in 2023.
The company added that its net profit for the second quarter witnessed a rise of 66.5 percent to SR116.4 million, compared to the same period of the previous year.
PIF is set to reach $2 trillion in assets under management by 2030, propelling it from fifth to second place globally among sovereign wealth bodies, according to a report by Global SWF in April.
As per SWF’s release, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals in 2023, representing a 33 percent increase from the prior year.
In March, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth-largest global sovereign wealth fund.
Saudi Arabia climbs 15 places to 12th in global tourist spending: UN Tourism
JEDDAH: Saudi Arabia has made a remarkable leap, climbing 15 places to rank 12th in global tourist spending for 2023, according to the latest UN Tourism report. This is the largest jump among the top 50 countries.
The ranking follows a September report from the UN Tourism, which highlighted the Kingdom’s leadership among G20 nations with a 73 percent increase in international visitor growth and a staggering 207 percent rise in international tourism receipts from January to July 2024 compared to the same period in 2019.
These achievements reinforce Saudi Arabia’s status as a premier global tourism destination, showcasing travelers’ growing confidence in the Kingdom's diverse and appealing offerings. In a bid to capitalize on this momentum, the tourism sector has raised its target for 2030 from 100 million to 150 million visitors, with potential for further increases if this goal is met ahead of schedule, according to Mahmoud Abdulhadi, deputy minister of destination enablement at the Ministry of Tourism.
Speaking at the Future Hospitality Summit in Riyadh last week, Abdulhadi noted that targets are continually assessed and adjusted based on sector performance.
The UNWTO praised the Kingdom’s tourism progress as a “significant milestone” in its quest to become a global leader in the industry. The report indicated that tourism-related spending surpassed $37 billion in 2023, accompanied by substantial growth in hotel capacity across the country.
In the first seven months of 2024, Saudi Arabia welcomed approximately 17.5 million international tourists. For 2023, the Kingdom hosted 27.4 million visitors, marking a 56 percent increase from 2019. This surge has placed Saudi Arabia at the top of the UN’s list for tourism growth among major destinations.
Additionally, the Kingdom’s tourism surplus reached a record SR48 billion ($12.8 billion) in 2023, a 38 percent year-on-year increase.
The International Monetary Fund, in its 2024 Article IV Consultation report released in September, commended the significant progress made by Saudi Arabia’s tourism sector under the Saudi Vision 2030 initiative. The IMF underscored the sector’s vital role in diversifying the Kingdom’s economic base, particularly within the services sector, where it has become a key growth driver in terms of visitor numbers, spending, job creation, and contribution to GDP.
According to the latest UNWTO Barometer report, global international tourist arrivals have rebounded to 96 percent of pre-pandemic levels from January to July 2024, totaling approximately 790 million — an 11 percent increase compared to the same period in 2023. The UNWTO also noted that the Middle East led global growth with a 26 percent rise in international arrivals compared to 2019 levels.
Saudi Arabia opens 9th round of ‘Sah’ savings products offering 4.89% return
RIYADH: Saudi Arabia has launched the ninth round of its subscription-based savings product, Sah, for November, offering a competitive return of 4.89 percent.
This initiative aims to promote financial stability and growth among citizens.
The Shariah-compliant, government-backed sukuk began on Nov. 3 and will remain open until Nov. 5. Redemption amounts are expected to be paid within a year, as announced by the National Debt Management Center on X.
Organized by the NDMC and issued by the Ministry of Finance, these fee-free savings products provide low-risk returns and are available through the digital platforms of various approved financial institutions.
Sah is the first savings product specifically designed for individuals, taking the form of bonds within the Kingdom’s local bonds program, denominated in Saudi riyals. It supports the Financial Sector Development Program, part of Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international standard of 10 percent by 2030.
The minimum subscription amount is set at SR1,000 ($266), corresponding to the value of one bond, while the maximum is SR200,000 for total issuances per user during the program period. The product is aimed at individuals, with monthly returns provided according to the issuance calendar.
The saving period lasts one year, with a fixed return, and accrued yields are disbursed at the end of the sukuk’s term. Future returns will be influenced by month-to-month market conditions.
The product is open to Saudi nationals aged 18 and above, who must open an account with one of the following: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Capital.
In October, the Kingdom launched its eighth round of the Sah program, offering a 4.92 percent return, while the seventh round in September provided a return of 5.31 percent.
NDMC CEO Hani Al-Medaini has emphasized that the sukuk aims to foster private sector collaboration. Future initiatives will focus on developing tailored savings products for various individual categories through banks, fund managers, fintech companies, and other institutions.
Al-Medaini noted that the issuance of Sah is a significant financial initiative by the Saudi government to encourage saving and enhance financial inclusion, ensuring access to products and services that meet the needs of individuals, such as savings accounts like Sah.
Newcleo aims to transform nuclear energy with innovative safety solutions, says CEO
- Stefano Buono outlined the company’s approach to safer, more sustainable nuclear energy
- He highlighted Newcleo’s distinct approach to waste recycling
RIYADH: French start-up Newcleo is progressing in the clean energy sector, aiming to transform nuclear technology with a focus on safety and sustainability, said the company’s CEO.
Speaking to Arab News on the sidelines of the Future Investment Initiative in Riyadh last week, Stefano Buono outlined the company’s approach to safer, more sustainable nuclear energy as an alternative to fossil fuels.
Founded in 2021, Newcleo specializes in small, advanced reactors designed to tackle key nuclear sector challenges, including waste management and plant safety.
Backed by the French government’s France 2030 plan, Newcleo has developed a lead-based cooling technology that enhances reactor safety and facilitates waste recycling, setting it apart from many competitors.
“I started working on new technologies in the 1990s, especially after the Chernobyl accident,” Buono told Arab News. “Since then, we have been working to develop technologies that can deal with any nuclear accident, with an emphasis, of course, on the safety of facilities, to develop solutions that guarantee that nuclear accidents cannot happen.”
One of Newcleo’s innovations is the use of lead as a coolant, which Buono says allows for cost-effective cooling while enabling compact reactor designs and recycling of radioactive waste. “This is why we have chosen to develop equilibrium solutions for reactor cooling,” Buono said.
“It’s now possible to cool reactors with liquid metals like lead,” he said, adding that this method allows for the cooling of compact batteries at a very low financial cost. “Our technology also makes it possible to recycle radioactive waste.”
According to the International Energy Agency, the nuclear sector could help reduce global greenhouse gas emissions by providing an alternative to fossil fuels.
A key strength of nuclear power is its ability to generate electricity without emitting carbon dioxide during operation, making it a valuable ally in the push to meet emissions reduction targets.
However, nuclear energy also presents challenges. Radioactive waste management, plant safety, and public perception are issues that demand clear solutions and technological innovation — areas where French start-up Newcleo aims to make a difference.
Buono highlighted Newcleo’s distinct approach to waste recycling, describing it as a competitive advantage over American companies. “Recycling is one aspect, and the fact that there is no nuclear waste is a good thing,” he said, adding that the company’s methods make it easier to collaborate with industrial partners and data centers.
Buono emphasized the importance of implementing technology already established in the region, citing the example of Italian company Fincantieri, a key partner for Newcleo. “These platforms also represent a meeting point between nuclear technology and industry, two worlds that have everything in common to make this collaboration a success,” he said.
According to Buono, Newcleo’s technology is designed not only to generate electricity but also to provide heat and support industrial processes, which he described as “the beauty” of their approach.
Commenting on the FII, Buono said Newcleo aimed to gain insights into Saudi Arabia’s nuclear landscape. “Our company is very European, and our aim is to raise awareness of our technology because we want to see it developed in the Kingdom,” he said. “For us, this was really a reconnaissance mission.”
While nuclear sector growth is relatively slow, Buono believes demand for decarbonization is growing faster. “Growth and competition in the nuclear sector are slow, but we need to decarbonize a lot,” he added. “The demand is faster than the sector’s growth, and I do not think there are many players capable of innovating in these systems.”
Newcleo’s ambitions are further bolstered by French government support, which Buono considers essential for its global aspirations. “Our start-up is directly supported by the French government as part of its France 2030 plan,” he said. “This is crucial support, and when we go to other countries, we can count on government backing through embassies, export ministries, and Business France.”
As Newcleo looks to expand internationally, its innovative reactor technology aims to position nuclear energy as a viable, safe solution for future energy needs.
Saudi Arabia’s Qiddiya Investment Co. and Globant partner in immersive entertainment push
- Globant will work with QIC to develop the Qiddiya PLAY LIFE Connected Experience
- Deal to showcase how digital ecosystems can enhance the entertainment and cultural sectors in the Kingdom
RIYAD: Qiddiya Investment Co., wholly owned by Saudi Arabia’s Public Investment Fund, signed an agreement with tech firm Globant to turn Qiddiya City into an immersive hub.
Under the deal, Globant will work with QIC to develop the Qiddiya “PLAY LIFE Connected Experience,” a digital entertainment, sports, and culture ecosystem designed to transform how visitors and residents interact with the destination’s wide range of offerings, according to a press statement.
Developing mega projects like Qiddiya is one of the goals outlined in Saudi Arabia’s Vision 2030 program, as the Kingdom continues to evolve as a global tourism and entertainment destination.
“Our partnership with Globant marks a pivotal step in realizing Qiddiya’s vision as the world’s first city dedicated entirely to play. The Qiddiya PLAY LIFE Connected Experience will enhance how visitors engage with our attractions and set a new standard for digital integration in entertainment and tourism,” said Abdulrahman Al-Ali, chief technology officer at QIC.
He added: “We are creating a destination that is both innovative and unforgettable, and this collaboration will help ensure that every visitor’s journey is personalized, seamless, and truly unique.”
The press statement said that the PLAY LIFE Connected Experience framework will leverage advanced systems like artificial intelligence, data analytics, and cloud technology to develop an interface that will personalize and enhance every interaction at Qiddiya City.
The platform will also allow visitors to book events, manage their itineraries, discover new adventures, and engage with the community, all through a personalized, real-time interface.
“Partnering with Qiddiya on this program is a major milestone for Globant. We are not building a smart city but creating an immersive, digitally connected experience that brings Qiddiya to life in ways that go beyond traditional entertainment. This is the future of how cities and people will interact, and we are thrilled to lead this transformation,” said Federico Pienovi, CEO and chief business officer of New Markets at Globant.
The incorporation of technology in Qiddiya City will showcase how digital ecosystems can enhance the entertainment and cultural sectors in the Kingdom, according to the press statement.
Mamdouh Al-Doubayan, managing director for the Middle East and North Africa at Globant, said the deal will help the Saudi workforce advance in the technological sector.
“Projects like Qiddiya provide unparalleled opportunities to transfer our expertise in digital transformation and innovation, especially in the entertainment industry, to the new generation of Saudis. As a result of creating opportunities for upskilling and reskilling, we are helping to build the future workforce and enabling the Kingdom to become a leader in digital ecosystems,” said Al-Doubayan.
