Saudi Arabia’s new corporate law supports family firms, SME investments: Official

The changes will enhance the diversity and strength of the local market, and raise the level of competitiveness of the Saudi investment environment. (Reuters File Photo)
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Updated 09 July 2022
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Saudi Arabia’s new corporate law supports family firms, SME investments: Official

  • Founders, partners or shareholders, during or after the company incorporation period, may make one or more agreements regulating the relationship between them and the company
  • New law also allows these entrepreneurs to prepare a family charter that includes the organization of family ownership in the company, its governance, management, work policy and employment of family members

RIYADH: The new Saudi Companies Law will play a pivotal role in providing an incubating and stimulating environment for investment, especially in family businesses and small and medium enterprises, according to the chairman of the National Center for Family Enterprises.

The new law facilitates procedures and regulatory requirements to stimulate the business environment and support investment, Saudi Press Agency reported citing Ghassan Al-Sulaiman.

According to the new law, founders, partners or shareholders, during or after the company incorporation period, may make one or more agreements regulating the relationship between them and the company. It outlines how the heirs of these entrepreneurs can join the company.

Additionally, the law allows these entrepreneurs to prepare a family charter that includes the organization of family ownership in the company, its governance, management, work policy and employment of family members.

The family charter also specifies the mechanism for distributing profits, disposing of shares, and settling disputes.

The family agreement or charter is binding and may be part of the company’s articles of incorporation or articles of association. But it is stipulated that it does not violate the company’s law or articles of association.

Contracts, clearances and other documents issued by the company must contain the company’s name, form, head office address and email address, if available, and its registration number with the commercial registry.

They also must include the company’s capital and the paid-up amount, except for the Solidarity Company and the Simple Partnership Company, and the phrase ‘under liquidation’ added to the company’s name during the liquidation period.

Al-Sulaiman referred to the role of the National Center for Family Enterprises in cooperation with the employees of the Ministry of Commerce and their participation in the opinion and contribution to the formulation of the new corporate system to serve family businesses, SPA said.

In the Middle East, family businesses contribute 60 percent to the gross domestic product and employ 80 percent of the workforce, according to PwC. Additionally, an estimated $1 trillion is expected to pass to the next generation within a decade.

The Saudi Cabinet approved on June 28 the new corporate law allowing the creation of a new type of company in the Kingdom to boost entrepreneurship.

According to SPA, the new corporate system and its provisions and procedures enhance the sustainability of more than 538,000 family establishments, constituting 63 percent of the total establishments operating in the Kingdom.

A study by the center revealed that these family businesses contribute approximately SR810 billion ($215.8 billion) to the Kingdom’s gross domestic product.

“The new law will improve the financing and business dynamics in every sector in the economy, it should have a great positive impact on the economy for the next decades,” CEO of Razeen Capital, Mohammed Al Suwayed, earlier told Arab News.

Under the new law, many restrictions in the incorporation, practice and exit phases and restrictions on company names have been removed.

According to the Ministry of Investment, the changes will also enhance the diversity and strength of the local market, and raise the level of competitiveness of the Saudi investment environment.

The new corporate system will play a pivotal role in supporting and strengthening the regulatory environment for commercial and economic entities, the chairman of the Capital Market Authority said. 

The system aims to facilitate the procedures and regulatory requirements to stimulate the business environment and support investment, Mohammed Elkuwaiz added. 


Pakistani deputy PM to attend UAE’s Sir Bani Yas Forum today

Updated 52 sec ago
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Pakistani deputy PM to attend UAE’s Sir Bani Yas Forum today

  • Three-day summit will host top decision-makers, experts for debates on regional issues
  • Ongoing war in Gaza is expected to feature prominently in discussions at Sir Bani Yas Forum

ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar will attend the three-day 15th Sir Bani Yas Forum in the United Arab Emirates (UAE) from today, Friday, the foreign office in Islamabad said, with the ongoing war in Gaza expected to be at the center of discussions. 
The three-day annual retreat will bring together top decision-makers and experts to debate pressing Middle Eastern issues such as regional peace and security and economic transformation.
“At the invitation of His Highness Sheikh Abdullah bin Zayed Al Nahyan, Deputy Prime Minister and Foreign Minister of Pakistan, Senator Mohammad Ishaq Dar will participate in the 15th Sir Bani Yas Forum being held from Nov. 15-17 in the UAE,” foreign office Spokesperson Mumtaz Zahra Baloch said at a weekly news briefing in Islamabad.
“At the forum, Deputy Prime Minister and Foreign Minister will engage in high-level dialogue with global leaders and experts addressing critical issues of regional security, economic cooperation and sustainable development.”
Dar will highlight Pakistan’s “strategic perspective on fostering diplomatic solutions to complex regional challenges and advancing collective prosperity,” Baloch added. 
The war in the Gaza Strip is expected to feature prominently in discussions at the Sir Bani Yas Forum. 
Israel invaded the enclave last year after Hamas-led gunmen attacked communities in southern Israel, killing around 1,200 people, according to Israeli authorities, and abducting more than 250 as hostages. Since then, the Israeli campaign has killed more than 43,500 people, according to Gaza health authorities, and destroyed much of the enclave’s infrastructure, forcing most of the 2.3 million population to move several times.
The issue was also at the center of the agenda at the recently concluded Joint Arab-Islamic Summit hosted by Saudi Arabia, with Baloch welcoming the resolution adopted by the summit, which, among other issues, called on the UN Security Council to impose an arms embargo on Israel and asked it to set up an independent investigation committee to investigate Israeli crimes including genocide, forced disappearances, torture and ethnic cleansing.


Pakistan restores train service from restive Balochistan province after bombing at train station

Updated 11 min 30 sec ago
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Pakistan restores train service from restive Balochistan province after bombing at train station

  • At least 24 people were killed in a bomb blast on Saturday at a railway station in the city of Quetta
  • In August, over 50 people were killed in Balochistan in militants attacks on police stations, railway lines, highways.

QUETTA: A train service between the southwestern city of Quetta and Peshawar in Pakistan’s northwest resumed on Friday after being shut for four days following a deadly bombing at a railway station.
At least 24 people were killed and more than 40 injured in a bomb blast on Saturday at a railway station in the city of Quetta in the province of Balochistan, which is grappling with a surge in strikes by separatist ethnic militants that has raised security concerns for projects aiming to develop the province’s untapped mineral resources.
Imran Hayat, Divisional Superintendent of Pakistan Railways Quetta Division, said train operations from Balochistan to the rest of the country had been restored, with the Quetta-Peshawar bound Jaffar Express departing from Quetta Railway Station on Friday morning amid tight security at the railway station.
“We had suspended our service for four days following the threat of attacks on the train service in Balochistan,” Hayat told Arab News. 
“Today, the Quetta-Peshawar bound Jaffar Express departed from Quetta Railway Station at 9am and we have resumed service for Karachi and Chaman amid stringent security measures across the railway station.” 
The Baloch Liberation Army (BLA), a separatist militant group, claimed responsibility for Saturday’s attack.
The BLA seeks independence for Balochistan, a province of about 15 million people that borders Afghanistan to the north and Iran to the west. The BLA is the biggest of several ethnic insurgent groups battling the government, saying it unfairly exploits the province’s rich gas and mineral resources. The government denies this. 
In August, over 50 people were killed in Balochistan after separatist militants attacked police stations, railway lines and highways.
The assaults in August were the most widespread in years by militants fighting a decades-long insurgency to win secession for the province, home to major China-led projects such as a port and a gold and copper mine.


Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform

Updated 28 min 15 sec ago
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Oil Updates – crude heads for weekly loss as Chinese demand continues to underperform

SINGAPORE: Oil prices fell on Friday on signs demand in China, the world’s biggest crude importer, continues to underperform amid its uneven economic recovery.

Brent crude futures were down 65 cents, or 0.9 percent, at $71.91 a barrel by 7:50 a.m. Saudi time. US West Texas Intermediate crude futures were down 62 cents, or 0.9 percent, at $68.08.

For the week, Brent is set to fall 2.7 percent while WTI is set to decline 3.3 percent.

“While oil prices have somewhat stabilized around the $71.00 level of support this week, the lack of a concrete bullish catalyst suggests that price recovery remains tepid for now,” Yeap Jun Rong, market strategist at IG, said in an email.

The prospect of higher supplies from the US and OPEC+ along with doubts over China’s economic recovery continue to be of concern, while the odds of a December rate cut are now “closer to a coin flip” under a less dovish Federal Reserve, Yeap added.

China’s oil refiners in October processed 4.6 percent less crude than a year earlier, falling year-on-year for a seventh month, amid the closures of some plants and reduced operating rates at smaller independent refiners, data from the National Bureau of Statistics showed on Friday.

The decline in run rates occurred as China’s factory output growth slowed last month and demand woes in its property sector showed few signs of abating even though consumer spending increased, government data showed.

Oil prices also fell this week as major forecasters indicated market fundamentals remained bearish.

The International Energy Agency forecast global oil supply will exceed demand in 2025 even if cuts remain in place from OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, as rising production from the US and other outside producers outpaces sluggish demand.

The Paris-based agency raised its 2024 demand growth forecast by 60,000 barrels per day to 920,000 bpd, and left its 2025 oil demand growth forecast little changed at 990,000 bpd.

OPEC this week cut its forecast for global oil demand growth for this year and 2025, highlighting weakness in China, India and other regions, marking the producer group’s fourth-consecutive downward revision to its 2024 outlook.

US crude inventories last week rose by 2.1 million barrels, the Energy Information Administration said on Thursday, much more than analysts’ expectations for a 750,000-barrel rise.

Gasoline stocks fell by 4.4 million barrels last week to the lowest since November 2022, the EIA said, compared with analysts’ expectations in a Reuters poll for a 600,000-barrel build.

​Distillate stockpiles, which include diesel and heating oil, also fell unexpectedly by 1.4 million barrels, the data showed.


Wars, looming Trump reign set to dominate G20 summit

Updated 51 min 59 sec ago
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Wars, looming Trump reign set to dominate G20 summit

  • G20 leaders gather in Brazil on Monday for a G20 summit set to be dominated by differences over wars in the Middle East and UkrainE
RIO DE JANEIRO:G20 leaders gather in Brazil on Monday for a G20 summit set to be dominated by differences over wars in the Middle East and Ukraine, and implications of Donald Trump’s White House return.
Security considerations — always high at such meetings — were elevated further after a failed bomb attack late Wednesday outside Brazil’s Supreme Court in Brasilia.
Police were probing the two blasts as a possible “terrorist act” committed by a Brazilian perpetrator, whose death was the sole casualty.
The summit venue is in Rio de Janeiro, in the city’s stunning bayside museum of modern art, which is the epicenter of a massive police deployment designed to keep the public well away.
Brazil’s leftwing President Luiz Inacio Lula da Silva will be using the opportunity to highlight his position as a leader championing Global South issues while also being courted by the West.
That role will be tested in the months and years ahead as Latin America and other regions navigate “America First” policies promised by Donald Trump when he becomes US president in January.
At this G20, it will be outgoing President Joe Biden who will represent the world’s biggest economy, but as a lame duck the other leaders will be looking beyond.
Just before the Rio summit, on Sunday, Biden will make a stop in Brazil’s Amazon to underline the fight against climate change — another issue that Trump is hostile toward.


The G20 meet is happening at the same time as the UN’s COP29 climate conference in Azerbaijan — and as the world experiences dramatic climate phenomena, including in Brazil where flooding, drought and forest fires have taken heavy tolls.
At the last G20, in India, the leaders called for a tripling of renewable energy sources by the end of the decade, but without explicitly calling for an end to the use of fossil fuels.
One invited leader who declined to come to Rio is Russian President Vladimir Putin, who said his presence could “wreck” the gathering.
Putin denied an International Criminal Court warrant out against him, for Russia’s actions in Ukraine, was a factor in his decision. His foreign minister will represent Russia in Rio.
China’s President Xi Jinping, however, will be attending, and will even extend his stay after the summit to make an official visit to Brasilia on Wednesday.
China is Brazil’s biggest trading partner, and the two countries have been touting themselves as mediators to help end Russia’s war in Ukraine, so far without success.
That conflict, along with Israel’s offensives in Gaza and Lebanon, will loom large at the summit.
“We are negotiating with all the countries on the final declaration’s passages about geopolitics... so that we can reach consensual language on those two issues,” Brazil’s chief diplomatic official for the G20, Mauricio Lyrio, said.
Those conflicts will be “the elephant in the room,” Flavia Loss, international relations specialist at the School of Sociology and Politics of Sao Paulo (FESPSP), told AFP.
But that should not prevent Brazil from finding consensus on issues that it has made priorities under its G20 presidency, she said, such as the fight against hunger or taxing the world’s super-rich.
Lula, heading up Latin America’s biggest economy, set out his line in May when he said: “A lot of people insist on dividing the world between friends and enemies. But the more vulnerable are not interested in simplist dichotomies.”
The Rio G20 summit will open on Monday with Lula officially launching a “Global Alliance against Hunger and Poverty.”
The initiative aims to rally nations and international bodies to free up financing for that campaign, or to replicate programs that have previously had success.
And on the issue of taxing billionaires, the G20 countries already declared a desire to cooperate to bring that about, as set out by their finance ministers who met in Rio in June.
It remained to be seen, though, whether the leaders at the summit would pursue that goal, and on what terms.
Following the summit, Brazil hands over the G20 presidency to South Africa.

Xi, Biden attend Asia-Pacific summit, prepare to meet

Updated 15 November 2024
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Xi, Biden attend Asia-Pacific summit, prepare to meet

  • Joe Biden and Xi Jinping are due to hold a face-to-face meeting Saturday
  • APEC brings together 21 economies that jointly represent about 60% of world GDP

LIMA: US President Joe Biden and Chinese counterpart Xi Jinping will attend the first day of an Asia-Pacific leaders’ summit Friday ahead of a face-to-face meeting under a cloud of diplomatic uncertainty cast by Donald Trump’s election victory.
Biden and Xi are due to hold talks Saturday, in what a US administration official said will probably be the last meeting between the sitting leaders of the world’s largest economies before Trump is sworn in in January.
With the Republican president-elect having signaled a confrontational approach to Beijing for his second term, the bilateral meeting will be a closely watched affair.
Xi and Biden arrived in Lima Thursday along with other world leaders for a two-day heads-of-state meeting of the Asia-Pacific Economic Cooperation (APEC) grouping.
APEC, created in 1989 with the goal of regional trade liberalization, brings together 21 economies that jointly represent about 60 percent of world GDP and over 40 percent of global commerce.
The summit program was to focus on trade and investment for what proponents dubbed inclusive growth.
But uncertainty over Trump’s next moves now clouds the agenda — as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.
On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the summit to follow.
Trump announced this week he will replace Blinken with Senator Marco Rubio, a China hawk.
The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.
President Vladimir Putin of APEC member Russia will not be present.
Trump’s “America First” agenda is based on protectionist trade policies, increased domestic fossil fuel extraction, and avoiding foreign conflicts.
It threatens alliances Biden has built on issues ranging from the wars in Ukraine and the Middle East to climate change and commerce.
The Republican president-elect has threatened tariffs of up to 60 percent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.
China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.
But economists say punitive levies would also harm the American economy, and others further afield.
China is an ally of Western pariahs Russia and North Korea, and is building up its own military capacity while ramping up pressure on Taiwan, which it claims as part of its territory.
It is also expanding its reach into Latin America through infrastructure and other projects under its Belt and Road Initiative.
Xi on Thursday inaugurated South America’s first Chinese-funded port, in Chancay, north of Lima, even as a senior US official warned Latin American countries to be vigilant when it comes to Chinese investment.
Biden, meanwhile, will on Friday meet Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol — key US allies in Asia.
Traveling with Biden, National Security Adviser Jake Sullivan said the partner nations will announce the creation of a secretariat to ensure their alliance “will be an enduring feature of American policy.”
China isn’t the only country in Trump’s economic crosshairs.
The incoming US leader has threatened tariffs of 25 percent or more on goods coming from Mexico — another APEC member — unless it stops an “onslaught of criminals and drugs” crossing the border.
Peru has deployed more than 13,000 members of the armed forces to keep the peace in Lima as transport workers and shop owners launched three days of protests against crime and perceived government neglect.