Saudi Arabia is the third Gulf country in nine months to introduce a “golden visa”. Permanent residence starts at €187,000, while one-year renewable residencies are available from €23,000.

Saudi Arabia’s new “Premium Residency” program – approved in May – is now open for applications through a government-administered website.

Under the plan, foreigners will be able to buy real estate, take up employment, conduct business, come and go as they please, as well as sponsor residence permits for their family members, all without a Saudi sponsor, as previously needed, reports Bloomberg.

Subject to their having a clean criminal record and bill of health, as well as demonstrating financial solvency, the program is open to applicants of at least 21 years of age.

The plan “ensures that residents and expatriates – including those who have lived in the kingdom for decades – are an active part of Saudi Arabia’s economy.

This will strengthen the state’s revenue and robustly support the Saudi economy,” Economy Minister Mohammed Al-Tuwaijri told Bloomberg.

Under Saudi law, foreign employees and workers have been subject to considerable monthly fees intended to incentivize private firms to prefer local employees to expatriate ones. Resident foreigners, moreover, needed local sponsors and permission to leave the country, and could not own property.

Those legislative handicaps, coupled with dismal growth in economic output (-0.7% in 2017), have impelled the departure of several hundred thousand expats from the country in recent years, a trend the young ruler hopes to reverse.

Lofty – but perhaps not unrealistic – revenue targets

The program – first proposed by Crown Prince and de facto regent Mohammed bin Salman – is part of a wider strategy to boost foreign investment and reduce the economy’s dependence on oil.

When floating the idea in 2016, the monarch estimated the scheme would raise some US$10 billion per year by 2020.

While that estimate may appear ambitious (even the most popular European programs struggle to reach a billion euros in annual revenue), Saudi Arabia’s golden visa has a built-in customer group; thousands of wealthy Arabs who have lived in the country for decades, and 12 million foreign residents overall, more than a third of the total population.

In a region historically characterized by skepticism toward foreign influence and hyper-restrictive residence requirements, Saudi Arabia becomes the latest country to confirm a trend of immigration policy relaxation; in September last year, both the UAE and Qatar introduced means-based residence visas for expats.

Source: imidaily

Saudi Arabia seeks foreign direct investment to help diversify the economy away from oil.

The Saudi Arabia General Investment Authority (SAGIA) said that the number of new licences approved for foreign businesses in Saudi Arabia rose by 70 per cent in the first quarter from a year earlier.

Ibrahim Al Omar, the Governor of SAGIA, said that applications from British and Chinese companies drove the increase, rising by 86 per cent and 71 per cent, respectively.

The fastest-growing industries were education, which the Kingdom only opened to foreign investors in November, and information and communications technology, added Al Omar.

The year-on-year growth in foreign licences follows Saudi efforts to remove restrictions on international investments. Yet, fresh foreign direct investment in the country has been modest.

SAGIA is working with the World Bank to improve its ranking on the ease-of-doing-business index, where it currently ranks 92 among 190 countries.

“We are reviewing all licencing requirements, and you will see a 50 per cent drop overall from government departments in terms of the time, cost and number of requirements to invest in Saudi Arabia,” Al Omar said.

Source: bankerme

(English)

أختتمت قمة الشركات الناشئة التي نظمتها مجموعة البذور النجوم (سيدستارز، Seedstars) أعمالها في مركز المؤتمرات السويسري المرموق في لوزان (Swiss Tech Convention Center) في معهد العلوم التطبيقية (EPFL)، حيث كانت الجائزة الكبرى من نصيب الشركة الأرجنتينية الناشئة (Blended).

بعد عام من التصفيات والمنافسات التأهيلية في أكثر من 80 مدينة في البلدان الناشئة، دعت مجموعة سيدستارز 67 متسابقًا نهائيًا إلى سويسرا في الفترة من 1 إلى 5 نيسان/أبريل 2019. تم اختيارهم من أصل 3500 طلبا من 63 دولة، وكان لهم شرف المشاركة في تدريب عملي لمدة يومين، تخلله لقاءات فردية مع الخبراء والمستثمرين، والتنافس على العديد من الجوائز على شكل رأسمال استثماري.

على الرغم من كون القطاع المالي الأكثر تمثيلا في السنوات السابقة في هذه القمة، فان الابتكارات التكنولوجية الفائزة في عام 2019 كانت جميعها تتعلق بالصحة والتعليم.

تكريم تكنولوجيا التعليم والصحة

تعكس قائمة الفائزين لهذا العام احتياجات البلدان الناشئة. يؤكد فريدي فيغا (Freddy Vega)، مدير شركة (Platzi.com) في خطابه على أن 13٪ فقط من الشباب يدخلون الجامعات في أمريكا اللاتينية على سبيل المثال. يوفر برنامجه على الإنترنت لمليون طالب من جميع أنحاء القارة الوصول إلى التدريب المتقدم في مجال التقنيات الجديدة.

يقول ريكو بالديجر (Rico Baldegger)، الأستاذ في جامعة العلوم التطبيقية في فرايبورغ، أحد شركاء سيدستارز: "التعليم لا يقتصر فقط على الدروس، بل أيضًا على إيجاد الإلهام". مثل مشروع الدكتور فهد النمري من المملكة العربية السعودية احدى المشاريع الملهمة، حيث استخدم تجربته كمعلم متخصص لتصور برنامج ينمو (YNMO)، وهي خدمة للأطفال المعوقين. وبالفعل فقد كرم المشاركون في القمة هذا المشروع بمنحه جائزة الجمهور لعام 2019 (انظر الإطار).

كانت الجائزة الأولى من نصيب (Blended) التي توفر منصة عبر الإنترنت وهي طريقة مبتكرة للتواصل بين المدرسة وأولياء الأمور حيث يستفيد منها بالفعل 250 الف طالب. توفر الجائزة لتي تصل قيمتها الى 500 الف دولار فرصة فريدة للمشروع للتوسع في القارة التي يصعب فيها جمع الأموال. ومع ذلك، كما يقول فيديريكو هيرنانديز (Federico Hernandez)، مؤسس الشركة الناشئة، فإن هذه التجربة جلبت له أكثر من مجرد أموال: وهي الأفكار. ويقول: "تقوم شركة سيدستارز بعمل أساسي للكشف عن الشركات الموهوبة في جميع أنحاء العالم". وهذا ما تطمح اليه بالفعل: لتحفيز الابتكار.

صناديق استثمار إقليمية جديدة

تهدف المجموعة التي تتخذ من سويسرا مقراً لها الى تحسين حياة الناس في البلدان الناشئة من خلال التكنولوجيا وريادة الأعمال، والسعي لتحقيق أهداف التنمية المستدامة وفقا لجدول أعمال الأمم المتحدة لعام 2030. فهناك حاجة إلى حوالي 5 تريليون دولار من الاستثمارات لتحقيق ذلك. ومع ذلك، تشير التقديرات إلى أنه يمكن تعبئة 228 مليار دولار من الأصول الخاضعة للإدارة لهذا النوع من الاستثمار المسؤول. في الجهة الاخرى، يتمثل مجال العمل الرئيسي الآخر لـسيدستارز في توليد استثمارات في داخل البلدان الناشئة وتحويلها إليها.

من خلال شعارها "التأثير والابتكار والاستثمار"، شرعت سيدستارز في وضع إستراتيجية جديدة لإنشاء صناديق استثمار إقليمية. وقد أعلنت عن إطلاق صندوق رأس المال الاستثماري بقيمة 100 مليون دولار لأفريقيا جنوب الصحراء، وذلك بالشراكة مع شركة (First Growth Ventures). وقد رحب المشاركون بالتصفيق لانشاء هذا الصندوق الذي سيسمح بالحصول على تمويل للبدء بالمشروعات يتراوح بين 250 الف دولار و5 ملايين دولار. وتقول اليزي دو توناك (Alisée de Tonnac)، الشريك المؤسس لمجموعة سيدستارز: هناك اهتمام متزايد بالاستثمار الذي له تأثير اجتماعي أو بيئي.

تغيير الذهنية: احداث التغيير المطلوب

وينطبق هذا بشكل خاص على الجيل الناشيء، لأن المال يحفز بشكل أقل من القدرة على التعبير عن القيم. تسعى سيدستارز إلى التأثير على ثقافة الدول الناشئة من أجل بناء صورة إيجابية لرجل الأعمال تدريجياً. وقد عقدت حلقة نقاش في هذه القمة حول مسألة عقلية ريادة الأعمال.

اكد هذه الفكرة أحد المتحدثين، عمر عيتاني، مؤسس شركة (FabricAID) من لبنان: وقد أشار الى أنه في تصورات والديه "كان من الضروري توفير ثلاجة ممتلئة " وذلك من خلال وظيفة مستقرة. لم يعد هذا هو الشاغل الرئيسي لجيله. فقد بدأ مشروعه في ظروف يحفها المخاطر لبيع الملابس المستعملة للمجتمعات المحرومة في بلده. ومن أجل النجاح والحفاظ على أسعار منخفضة، راهن على العدد. اليوم مشروعه يجذب الأموال من الشركات غير المعتادة على الاستثمار الاجتماعي. يميل جيل الألفية الذي ينتمي اليه، خاصة في البلدان التي تتمتع بالميزة، إلى رؤية العالم كقرية كبيرة. ويلخص القول :"الأمر كله يتعلق بالحالة الذهنية".

التركيز على منطقة الشرق الأوسط وشمال إفريقيا

يظل النظام الإيكولوجي في البلدان الناشئة بالنسبة للشركات الناشئة جنينياً. وتشكل منطقة الشرق الأوسط وشمال إفريقيا جزءا من هذا الواقع. وقد عززت سيدستارز وجودها في العام 2019 من خلال برامج في 18 مدينة و15 دولة. واستضافت قمة بيروت الإقليمية في تشرين الثاني/نوفمبر 2018، 351 مشاركًا لمدة ثلاثة أيام ونظمت 303 اجتماعًا مباشرًا بين 45 مستثمرًا و 119 شركة ناشئة من 21 دولة.

ضمت القمة العالمية في لوزان، 13 متسابقًا من منطقة الشرق الأوسط وشمال إفريقيا, تم ترشيح أربعة منهم لنيل جوائز فاز منهم اثنين (انظر الإطار).

وكانت المنطقة موضوع عدة حلقات النقاش، خاصة الندوة التي شارك فيها رضا رهنمة، مؤسس شبكة نتكلم (NaTakallam) في لبنان (انظر الإطار).

يبدو أن ريادة الأعمال أصبحت مرغوبة في الدول الاكثر ازدهارا في منطقة الشرق الأوسط وشمال إفريقيا. وكونها ترتبط ارتباطًا وثيقًا بالتنمية الاقتصادية، فان ثقافة ريادة الأعمال تعتبر أقل بروزًا في بلدان مثل مصر، على الرغم من قصص النجاح لمشروعات ريادية مثل Swvl أو Instabug، التي اخترقت السوق الآسيوية والأمريكية، أو 7keema التي حصلت على جائزة (انظر الإطار).

يصنف مؤشر سيدستارز (SSI) المنامة بين أفضل 10 مدن من أصل 78 مدينة تم تقييمها في الدول الناشئة. بشكل عام، تتميز مدن الشرق الأوسط وشمال إفريقيا في هذا التصنيف العالمي لبيئتها الأكثر ملاءمة لريادة الاعمال، حيث تحتل الشارقة في دولة الإمارات العربية المتحدة المرتبة الأولى. وقد وضعت هذه الدولة سياسة عامة وطنية تشجع روح المبادرة. وتخطط دبي لإنشاء هياكل في الجامعات لدعم الابتكار. من جانبها، أنشأت مصر حاضنة المشروعات الناشئة فلك (Falak startups)، وهناك حرم جامعي مخصص لتسريع الأعمال في جامعة القاهرة (FEPS Accélération) ومركز ابتكاري بشاركة القطاعين العام والخاص في جامعة عين شمس. وفي المقاب فان المملكة العربية السعودية على وشك إطلاق أكبر مركز أعمال لمنطقة الشرق الأوسط وشمال إفريقيا.

من الظواهر الإيجابية في المنطقة الاهتمام المتزايد للشركات الكبيرة بالشركات الناشئة. أصبحت رعاية الأنشطة والتعاون لتمويل البدء بالمشروعات أكثر شيوعًا. بشكل عام تشهد منطقة الشرق الأوسط وشمال أفريقيا أيضًا تغييراً في اللوائح الملائمة لإنشاء الشركات. ومع ذلك، لا يزال هناك معوقات ولا تزال الحواجز المؤسسية تعيق الوصول إلى الاستثمار الأجنبي.

(سيتم نشر مقابلات مع الشركات الناشئة من العالم العربي وسويسرا لاحقا).

الشركات الناشئة المشاركة في القمة من الدول العربية وسويسرا:

 (العربية)

A l'issue de son 6^ème sommet, Seedstars vient de désigner dans le prestigieux Swiss Tech Convention Center de Lausanne, le grand vainqueur de sa compétition internationale annuelle : la start-up argentine Blended.

Après une année d'épreuves qualificatives dans plus de 80 villes des pays émergents, Seedstars a invité 67 finalistes en Suisse, du 1^er au 5 avril 2019. Choisis parmi 3'500 postulants de 63 pays, ils ont eu le privilège de participer à un stage pratique de deux jours, à des rencontres individuelles avec des experts et des investisseurs, et de concourir pour plusieurs prix sous forme de capital d'investissement.

Bien que, comme les années précédentes, le secteur financier ait été le plus représenté à Lausanne, les innovations technologiques lauréates en 2019 portaient toutes sur la santé et l'éducation.

La technologie pour l'éducation et la santé à l'honneur

Ce palmarès est le reflet des besoins des pays émergents. Dans son allocution Freddy Vega, directeur de Platzi.com, le souligne : seuls 13% des jeunes entrent à l'université en Amérique latine par exemple. Son programme en ligne offre à un million d'étudiants du continent l'accès à une formation supérieure dans le domaine des nouvelles technologies.

«L'éducation, ce n'est pas seulement suivre des leçons, c'est aussi trouver une inspiration», affirme Rico Baldegger, professeur à la Haute école de gestion de Fribourg, l'un des partenaires de Seedstars. D'inspiration, le Dr. Fahad Alnemary d'Arabie saoudite en a fait preuve, en puisant dans son expérience d'éducateur spécialisé pour imaginer YNMO, un service en faveur des enfants handicapés. Les participants au sommet ne s'y sont pas trompé en lui décernant le Prix du public 2019 (voir encadré).

Quant au gagnant du 1^er prix, Blended, sa plateforme en ligne propose un mode innovant de communication entre école et parents, dont bénéficient déjà 250'000 élèves. Doté de 500'000 dollars, le sacre de Seedstars Global Winner offre une opportunité unique d'expansion, dans un continent où la levée de fonds est particulièrement ardue. Pourtant, ainsi que le déclare Federico Hernandez, fondateur de la start-up, cette expérience lui a apporté bien plus que de l'argent : des idées. « Seedstars réalise un travail fondamental en révélant des entreprises de talent partout dans le monde», affirme-t-il. Et c'est bien là toute l'ambition de Seedstars : stimuler l'innovation.

De nouveaux fonds d'investissement régionaux

Le groupe né et basé en Suisse s'est donné pour mission d'améliorer la vie des gens dans les pays émergents grâce à la technologie et l'entreprenariat, à la poursuite des objectifs de développement durable de l'Agenda 2030 des Nations Unies. Quelques 5'000 milliards de dollars d'investissements sont nécessaires pour les atteindre. Or, on estime à 228 milliards de dollars les actifs sous gestion mobilisable pour ce type d'investissements responsables. Face à ce constat, l'autre grand volet d'action de Seedstars est de générer des investissements dans et vers les pays émergents.

Avec son slogan «Impact, Innovation, Investissement», Seedstars s'est engagée dans une nouvelle stratégie de création de fonds d'investissement régionaux. Elle a ainsi annoncé le lancement d'un fonds de capital-risque de 100 millions de dollars en faveur de l'Afrique subsaharienne, en partenariat avec First Growth Ventures. La perspective de montants d'amorçage de 250'000 à 5 millions de dollars a été accueillie par les applaudissements nourris du millier de participants présents à Lausanne. Alisée de Tonnac, cofondatrice de Seedstars World, l'affirme : il existe un intérêt croissant pour l'investissement à impact social ou environnemental.

Faire évoluer les mentalités : incarner le changement souhaité

Cela est particulièrement vrai pour la génération Y, que l'argent motive moins que la possibilité d'exprimer des valeurs. Seedstars s'efforce d'influencer la culture des pays émergents pour y instaurer graduellement une image positive de l'entrepreneur. Lors de son sommet annuel, un panel de discussion a été réservé à la question de la mentalité entrepreneuriale.

L'un des intervenants, Omar Itani, fondateur de FabricAID au Liban, le souligne : dans la perception de ses parents babyboomers « il fallait surtout un frigo bien rempli» grâce un emploi stable. Ce n'est plus la préoccupation centrale de sa génération. Il a démarré dans l'incertitude son entreprise de vente d'habits de seconde main à destination des communautés défavorisée de son pays. Pour réussir et maintenir des prix bas, il a misé sur le nombre. Aujourd'hui, il attire des fonds de firmes non coutumières de l'investissement social. Les millenials dont il fait partie, ont tendance, dans les pays privilégiés surtout, à voir le monde comme un grand village. «Tout est affaire d'état d'esprit», résume-t-il.

Gros plan sur la région Moyen-Orient et Afrique du Nord

Cependant, l'écosystème des start-ups demeure embryonnaire dans les pays émergents. La région MENA n'échappe pas à cette réalité. En 2019, Seedstars y a renforcé sa présence avec des programmes dans 18 villes et 15 pays. En novembre 2018, le sommet régional de Beyrouth a accueilli durant trois jours 351 participants et organisé 303 rencontres en tête-à-tête entre les 45 investisseurs et 119 start-up de 21 pays invités.

Au sommet mondial de Lausanne, la région MENA arborait 13 finalistes. Quatre ont été nominés et deux primés (voir encadré).

La région était également représentée dans les panels de discussions, avec notamment Reza Rahnema, fondateur NaTakallam au Liban (voir encadré).

L'entrepreneuriat semble une carrière recherchée dans les pays les plus prospères de MENA. Fortement liée au développement économique, la culture entrepreneuriale est moins marquée dans des pays comme l'Egypte, malgré les exemples de réussite comme Swvl ou Instabug, qui ont pénétré le marché asiatique et américain, ou encore 7keema primée à Lausanne (voir encadré).

Le Seedstars Index (SSI) classe Manama au Bahreïn parmi les 10 premières des 78 villes évaluées dans les pays émergents. Globalement, les villes de MENA se distinguent dans ce classement mondial pour leur environnement plus favorable à l'entreprenariat, avec Sharjah aux Emirats arabes unis au premier rang. Ce pays a développé une politique publique nationale encourageant l'entreprenariat et Dubaï prévoit la création de structures dans les universités pour soutenir l'innovation. De son côté, l'Egypte a mis sur pied un incubateur (Falak startups), un campus dédié à l'accélération (FEPS Accélération, université du Caire) ainsi qu'un centre d'innovation public-privé (université de Ain Shams). Similairement. Et l'Arabie Saoudite est sur le point de lancer le plus grand centre entrepreneurial de MENA.

Un phénomène positif dans la région est l'intérêt croissant des grandes entreprises pour les start-ups. Le sponsoring d'événement, la collaboration et le financement de start-ups sont de plus en plus fréquents. De façon générale, MENA connaît également une évolution de la réglementation favorable à la création d'entreprise. Cependant, les obstacles persistent et des barrières institutionnelles continent de freiner l'accès des investissements étrangers.

(Les interviews avec les start-ups de monde Arabe et de la Suisse vont suivre).

Les start-ups des pays Arabes et de la Suisse participant au sommet:

Saudi Arabian investment firm Kingdom Holding will put the proceeds from the sale of its stake in ride-hailing startup Careem toward $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.

Kingdom, which is 95 percent owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for 1.25 billion riyals ($333 million). It will receive 565 million riyals in cash, plus convertible bonds in Uber Technologies worth 685 million riyals.

"We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks," Talal Ibrahim al-Maiman said in a phone interview.

Some of the companies are in Saudi Arabia and some are in Europe, he said. "We're talking about $600 million or so."

"We will not deploy all the cash in one go, but this is the first tranche," he added. "It's a combination of debt and equity."

Kingdom's investments will be directed 70 percent into income-generating dividend-distributing investments and 30 percent into technology and potential growth companies, he said.

Kingdom was among the first investors in Careem, the Middle East rival of Uber, which acquired it this week in a $3.1 billion deal ahead of a hotly anticipated initial public offering.

Lyft, another Uber rival, was valued at $24.3 billion in the sector's first IPO on Thursday and shares opened up more than 20 percent on Friday. Kingdom has a 2.98 percent stake in the firm.

"If we assume exit, which we cannot of course because there's a lock-up period, we've made an IRR (internal rate of return) of 53 percent on Lyft," Maiman said.

"We've made almost 100 percent in Careem, so we've done very well. It's been really a good week for Kingdom."

Maiman said Kingdom would consider raising its investments in Lyft or Uber "if we see an opportunity there".

He added: "I think it would be a while before Lyft looks outside North America... but the Middle East would probably be one of the best international markets versus, for example, South America or the like."

Source: Reuters

تعود العلاقات الاقتصادية بين منطقة الخليج العربي وسويسرا الى عقود مضت إلا ان تلك العلاقات بدأت تأخذ منحنى تصاعدياً سريعاً في السنوات القليلة الماضية بسبب الجهود المبذول من الطرفين في سبيل تعزيز التعاون الاقتصادي الذي كلل بتوقيع اتفاقية التجارة الحرة بين مجلس التعاون الخليجي ورابطة دول الإفتا, التي تضم الى جانب سويسرا كل من النرويج وأيسلندا وليختنشتاين ,في عام 2009 لتدخل حيز التنفيذ عام 2015, تلك الاتفاقية التي تعتبر اول اتفاقية اقتصادية يقوم بها مجلس التعاون الخليجي ككيان موحد مع تكتل اقتصادي خارج المنطقة العربية, ومن الجدير بذكره ان سويسرا تعتبر العضو الاهم في رابطة الإفتا نظراً لتفوقها الاقتصادي وحجم تبادلاتها التجارية مقارنةً بباقي دول الرابطة.

تعكس اتفاقية التجارة الحرة، بالإضافة الى جهود التعاون الأخرى المتمثلة بزيارة الوفود الاقتصادية الرسمية والخاصة وإقامة المعارض وتأسيس لجان ومجالس مشتركة كمجلس رجال الاعمال السويسريين في قطر ومجلس رجال الاعمال السويسريين في دبي والمنطقة الشمالية، رغبة الطرفين في تعزيز التبادلات الاقتصادية، فالتجارة المتبادلة لا تأثر فقط في حجم التبادل السلعي بل تحمل معها أيضا زيادة في الاستثمارات المتبادلة وما يعنيه ذلك من فتح المزيد من الفرص الاستثمارية امام رواد الأعمال العرب-السويسريين.

نركز في هذا التقرير على تطور التبادلات التجارية بين دول مجلس التعاون الخليجي وسويسرا وذلك من حيث حجم التبادلات واهم السلع المستوردة والمصدرة من قبل الجانبين، من خلال رصد نمو التبادلات كماً ونوعاً بهدف تعريف القارئ على الفرص الاستثمارية والتجارية بين الجانبين وآفاقها المستقبلية.

تحميل نسخة مختصرة من التقرير

القاريء الكريم

اننا نبذل جهودا كبيرة لتوفير المعلومات الهامة والمفيدة واعداد التقارير المتخصصة التي تحتوي على معلومات تفصيلية وبيانات اقتصادية غاية في الأهمية، ومن هنا فاننا نعول على تفهمك للمساهمة في انجاح المنصة والمساعدة في تغطية التكاليف اللازمة كي نتمكن من توفير كل ما هو مفيد وجديد.

نشكر لك تفهمك واننا نتطلع الى مساهمتك لدعم منصتنا ونرجوا منك الاشتراك للحصول على النسخة الكاملة من التقرير.

مع خالص شكرنا تقديرنا.

النسخة الكاملة للتقرير (يرجى التسجيل على الرابط التالي https://saentrepreneurs.ch/index.php/plans/magazine/sign-up)

 أو الاشتراك في عضوية الموقع 

E-commerce innovator partners up with Saudi government sector to boost economic diversification in the Kingdom

Jollychic, the global online shopping platform and E-commerce ecosystem innovator, attended the Saudi Arabian Investment and Cooperation Forum on February 22, 2019, at the invitation of H.E. Dr. Majid Bin Abdullah Al Qasabi, Minister of Commerce and Investment. Jollychic founder and CEO, Arron Li, signed a memorandum of understanding (MoU) with the Governor of the Saudi Arabia General Investment Authority (SAGIA), Ibrahim Al-Omar, agreeing to form a comprehensive partnership to support the acceleration of digital transformation and enhancing economic diversification in Saudi Arabia.

As the Kingdom steadily advances toward the realization of Vision 2030, the Saudi government has launched a series of ambitious industrial initiatives that aim to contribute to the development of a robust and diversified economic infrastructure. The initiatives include the National Industrial Development Program (NIDLP), the Riyadh provincial development plan and free zone construction plan, as well as the the adoption of a "Cloud First Policy", which aims to accelerate the pace at which cloud computing is adopted within the public sector. Meanwhile, emerging industries such as information technology, modern logistics and e-commerce platforms have received more strategic direction and guidance policies.

Taking place at a transformative time for the Saudi economy, the MoU lays the foundation for Jollychic to establish a strategic relationship with SAGIA as well as relevant government sectors and stakeholders, thereby allowing for Jollychic to deepen its roots in the kingdom.

"It's an honor to partner with SAGIA and we hope to drive the overall competitiveness of KSA business community in the context of the Internet age while bringing unique value to the Kingdom while on its way to Vision 2030", Li said.

As the only e-commerce enterprise to sign an MoU during the forum, Jollychic will take full advantage of its position as an industry leader to lead and contribute to the development of an E-commerce ecosystem in Saudi Arabia, thereby contributing to the establishment of a diversified digital economy in the Kingdom and the achievement of Vision 2030.

As outlined in the MoU, SAGIA will provide comprehensive support for Jollychic to contribute in promoting the local e-commerce industry and ecosystem in Saudi Arabia. "Jollychic is a successful example of a company that is effectively stimulating employment and promoting social progress in the digital economy sector of Saudi Arabia." said Dr. Mazin M. Al Zaidi, Director of Innovation and Entrepreneurship at SAGIA. "We look forward to more tech companies gaining success in Saudi Arabia through a long-term development plan," he continued.

Relying on the solid foundation and business vision of Jollychic in Saudi Arabia, the MoU also captures key content about the e-commerce ecosystem and digital economy in Vision 2030.

Data from market researcher BMI shows that e-commerce sales in Saudi Arabiaare expected to reach $13.9 billion in 2021, up from $8.7 billion in 2017. According to the Kingdom's plans for Vision 2030, the Saudi government aims to increase the contribution of modern trade and E-commerce to 80% of the retail sector by 2020. As a country where about 60 percent of the population is under 30 years old and mobile Internet penetration exceeds 75%, the emerging Internet sector still has massive potential for growth.

With the comprehensive partnership framework called TIES, which stands for Technology, Investment, Employment and Social Awareness, Jollychic will work to enhance communication and cooperation with the Saudi government and other stakeholders to strengthen localization and investment in the areas of technology sharing, investment commitment, promoting employment and raising social awareness, comprehensively cementing the strategic bond for Jollychic with the Saudi market.

"As a non-oil company that had invested and rooted itself in Saudi Arabia at a very early stage, the Kingdom has always been an important strategic market for Jollychic. At present, the company owns one of the largest e-commerce fulfillment centers of the Middle East in Saudi Arabia," said Li. "Jollychic will promote infrastructural improvements such as a logistics network, Internet professional training and so on in Saudi, and actively utilize our expertise in artificial intelligence, big data, and Internet model innovation practice, etc. to build a healthy and sustainable e-commerce ecosystem, and drive economic diversification in Saudi Arabia," he concluded.

Source: prnewswire

When Najla Al Otaibi started Jars To Go she did it out of frustration. If you are a single working mum living in Saudi Arabia, you don’t have a lot of options for leading a healthy lifestyle. Juggling between work and looking after her 6-year old daughter, the business development manager from Riyadh knew something was wrong when her productivity at work dropped and she was struggling to stay focused. The lack of restaurants around the workplace offering healthy and balanced meals is a challenge that many employees face, but Najla was eager to solve her problem and that of hundreds of other employees in her hometown.

“I’ve always been health-conscious from a young age. Between my work and gym, since I was an adult I would eat right,” she tells us in a phone interview from her office in Riyadh. “The pain started when I came back from the United States where I did my Master’s degree in Hospitality Management. I was struggling with the options on the market. I had tried them all – Diet Center, Diet World, Diet Watchers – but their food is far from tasty, prepackaged, frozen or microwaved which I’m totally against.”

Little choice did Najla have but to prepare her own meals and take them to work. Stored in large jars and stacked up in colorful layers, her lunch was always healthy in bright fluorescent colors full of nutritious ingredients and rich in taste. “My colleagues at work would ask me – What are these? And where do you get them from?” Najla’s meals were starting to get noticed.

All the compliments she received made her realize one day that she could turn it into her business. She created her own website and social media profile and started sending complimentary meal jars to everyone she knew. Says 35-year-old entrepreneur, “For about a month it was all about: Hey, we are here. If you like our food, contact us.”

Najla noticed her word-of-mouth strategy totally paid off when she started to receive a growing number of orders for home deliveries. However, waking up at 3am in the morning to prepare the food, getting ready for work, dropping her daughter off at school and finally delivering the meals all by herself, only to go to work and start her 8-hour shift was a challenge like no other. It was her passion for healthy eating that kept her going.

Yet, it wasn’t until she found herself with an order of 3,000 school meals a day that she quit her well-paying job at Saudi Arabia’s semi-government sector and officially founded Jars To Go. “I struggled with the food that my daughter eats at school. I would make a healthy meal at home and when she goes to school she eats something completely different, so I went and offered to help by providing them with healthy food. They liked the idea and we signed a contract.”

Next came a commercial kitchen and hiring full-time employees to cater to her rapidly growing number of subscribers. Shortly after, the size of orders jumped up 15-fold to 60,000 meals a month from around 4,000 meals in 2016. Jars to Go grew from a small 2-person project to a successful start-up with over 25 employees and top investors from the food industry in less than 10 months. It’s now catering to three schools and delivering meals to individuals and companies through delivery apps and an online off the shelf service.

As a small people-focused business, JarsToGo nurtured good customer intimacy. Najla, who’s an artist by education, says it is the little things that count, like sending thoughtful messages on someone’s birthday, wishing them a speedy recovery if they were sick or sending them a small gift at the end of each subscription. “One time I read ‘1,000 True Fans’ by Harvard Business Review. I absolutely loved it and applied it to my business. It’s better to focus on 1,000 customers than 1 million because this 1,000 will bring you the customers you need and that’s what I did,” she says.

Despite possible assumptions that her food would appeal most to the expat population in the kingdom, Najla estimates that around 98% of her customers are Saudi Arabian nationals, most of whom are female. Greater awareness about food-related diseases is changing consumers’ habits, bringing in a shift in attitude when it comes to having a healthy diet. And yet, the wide-spread perception in the Arab world, says Najla, is that healthy food doesn’t taste good and feels like a punishment. Today she is working hard to change that one jar at a time.

“I love to be creative with my food. I make sure that my food is filling, healthy and tasty. There is a reason why I use the 16-ounce jars – not the bigger, not the smaller. The meal is just the right amount of filling and not to a point when you can’t move out of your seat so you can both get your nutrition and stay productive at work”

The key message that Najla wants to instill in her customers’ minds is that healthy eating is not for a day, it’s a lifestyle and a way of life. To help change people’s mindset, she created a non-profit group called “The Noon Community”, where she collaborates with different organizations, trainers and guest speakers to provide social meetings, knowledge-sharing and workshops all aimed at spreading awareness about leading a healthy lifestyle and a balanced, happy life.

A rising interest is spreading across Saudi Arabia particularly among female enterprises who are receiving growing support from government and their families to start their own business. It’s part of the social and economic change that Crown Prince Mohammed bin Salman is hoping to create with his new vision for the kingdom. The government is also working hard to stimulate local businesses and small and medium enterprises. As part of her work with the Ministry of Education to supply more schools with healthy meals, Najla was introduced to fellow female businesswomen working in the F&B sector. She observed they lack any business knowhow and, as a certified trainer, offered to train them.

While funding for new start-ups is largely available, she says, industry knowhow is more difficult to come by – a problem she experienced first hand when opening her commercial kitchen. “My problem wasn’t the funds – I was growing organically so I didn’t need a lot of investment and I had the financial means to support my business. The issue that I had was knowhow. I went into a field I knew nothing about. I didn’t know how to get the suppliers, what kind of packaging I needed to use, how to run a commercial kitchen, etc. It was a whole new world to me.” Najla says she would have benefited best from getting the knowhow straight from people in the business. Perhaps more robust mentorship and support programs need to be put in place to encourage others to follow in her footsteps. Especially when it comes to female entrepreneurs, she says a lot of work still needs to be done.

                                                           ***************

East from Riyadh, some 620 miles across the Saudi Arabian border, Dana Ashkar, CEO and Founder of CAHO Chocolate, is expanding her retail outlets for vegan chocolate across Dubai and planning to enter her product into global duty-free facilities around the world and international retail groups. It’s a big ambition for a business that opened as a small start-up just over a year ago.

“The brand’s vision is global. In the next two to three years, we are expanding into neighboring countries, such as Saudi Arabia, Kuwait and Bahrain,” says Dana. She adds: “Being online and able to deliver is a blessing. We are expanding through better logistics and delivery tools. We are also expanding our retail reach to Palm Jumeirah – Nakheel Mall by September 2019 and of course we will have a new manufacturing /retail outlet soon in Dubai and this will be announced soon.”

A family history of diabetes invoked the Lebanese born entrepreneur to create healthy versions of desserts and chocolates with her mother in the household kitchen. Alongside this, she started paying more attention to the ingredients used in the commercially-available chocolates. These were high in sugars, bad fats and preservatives, unsuitable for those with diabetes. This acquired knowledge paved the way to the decision of converting her love and passion to eat healthy into full time work.

Love for the people around her, passion to create chocolates in a healthy way and a greater purpose to serve the community led to the opening of the first CAHO chocolatier in December 2017. The idea is to redefine the chocolate industry by creating chocolates suitable for all; with wide options of sugar-free, dairy-free and gluten-free chocolates well suited for vegans, diabetics and those with other dietary needs.

“The increasing demand for healthier chocolate is evidence of a profound challenge the chocolate industry faces locally and globally. Diabetes and obesity levels – and government concern about them – are on the rise. Health is a challenge CAHO cannot afford to ignore, but rather it lays the foundations of our brand,” Dana explains.

“The other transformational gap the industry faces is sustainability. In an age where consumers are much more environmentally conscious, we realize the need to go beyond initiatives. We produce chocolates free of palm oil, preservatives and artificial ingredients,” she adds.

However, she admits her greatest challenge was financing. “The brand, the retail shop, its ecommerce website, drivers, vehicles and the whole business launched at one time. It was a combination of personal investment and savings. Fortunately, things changed after we opened and the business transformed, Dana says.

“Recently the brand and business model attracted new investors, as they saw our commitment, our success and our drive – and wanted to be part of the CAHO story,” she adds.

Dana describes CAHO Chocolate as an innovative brand and first online chocolatier with practically no competitors on the market. She says the business grew beyond expectations since inception and she’s now aiming to adopt cutting-edge technology to transform the e-commerce customer experience.

“We haven’t been able to determine our customers demographics yet, and don’t think it is ever measurable because our customers are from different ethnicity, living all over UAE, from ages 21 – 65. Women were our main clients until the last quarter of 2018 when we started receiving corporate orders and online purchases from men sending chocolate gifts as well as personal gifts; it takes one bite to get hooked,” says Dana.

Saudi Aramco’s trading arm plans to open an office in London soon as it expands its international business, sources familiar with the move said.

Aramco Trading Co (ATC) also opened an office in the bunkering hub of Fujairah, United Arab Emirates in December to trade oil products and hired two traders from Trafigura and PetroChina to run operations there, the sources said.

“Last June, a trading office was inaugurated in Singapore, and last December (another) in Fujairah and very soon in London, just like any trading house,” one of the sources said.

Another source said: “They have moved a few trading desks to Singapore and Fujairah. London is surely next.”

A third source said the London office might be inaugurated as early as next week during International Petroleum (IP) Week, an industry event held annually in the British capital.

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Saudi Aramco, the parent company, already has an office in Marylebone, London. The ATC London operations may be located in the same place as the parent company and are likely to start with a handful of crude oil traders, one of the sources said.

ATC did not immediately respond to a request to comment.

The trading sector faces increased rivalry between national oil companies (NOCs), international oil firms and Swiss merchants. NOCs have cheap feedstock and strength in refining, allowing them to compete aggressively with oil majors and especially traders that lack their own production.

ATC aims to boost its trading volumes in crude and refined products to 6 million barrels per day (bpd) by 2020 and the company’s headquarters will remain in Dhahran, Saudi Arabia, ATC’s chief executive told Reuters last year.

The CEO, Ibrahim al-Buainain, also said the plan to open an ATC regional office in Europe - either London or Geneva - was set for the first quarter of 2019.

Middle East oil producers are venturing into buying and selling oil to boost their incomes as a sharp drop in crude prices since mid-2014 has forced the industry to become more efficient and commercially focused.

State-owned Abu Dhabi National Oil Co is establishing a new trading operation along with Italy’s Eni and Austria’s OMV.

ATC was set up in 2012 initially to market refined products, base oils and bulk petrochemicals, but has since expanded into crude trading mainly to feed international Aramco joint ventures such as the U.S. Motiva refinery and S-Oil in South Korea.

Aramco, the world’s top oil producer and exporter, aims to become the largest integrated energy firm, with plans to expand refining operations and petrochemical output. It pumps around 10 million bpd of crude, of which it exports about 7 million bpd.

The company plans to raise its refining capacity - inside Saudi Arabia and abroad - to 8-10 million bpd, from around 5.4 million bpd now. Aramco is expanding its refining business at home as well as in new markets particularly in Asia. (Writing by Rania El Gamal; Editing by Dale Hudson)

Source: reuters

Why Do Business in Saudi Arabia?

Although parts of the Middle East and North Africa have seen political turmoil since the start of 2011, Saudi Arabia has remained stable and investors still view it as an attractive place to do business.

The Saudi Riyal is one of the world's most stable currencies and there have been no significant changes in its exchange value during the last three decades.

The key reasons for investing in the Kingdom include:

It is one of the world's 25 largest economies and the largest economy in the Middle East and North Africa Region - MENA.

The Kingdom is one of the world's fastest growing countries worldwide, with per-capita income forecast to rise from USD $25,000 in 2012 to USD $33,500 by 2020.

It has substantial cost advantages due to the low domestic cost of energy and industrial land due to generous subsidies and incentives.

It provides duty free access to other GCC and MENA economies and enjoys good transport and infrastructure links which will soon be supplemented by a national rail system.

Opportunities in Saudi Arabia

Saudi Arabia has a very fast growing economy - GDP growth in 2012 reached over 6%. The booming economy is creating great opportunities for both exporters and investors. These are further boosted by moves to diversify the economy away from dependence on oil and gas, economic reform, market liberalisation and a growing private sector.

Investors in Saudi Arabia enjoy increasingly well-developed business clusters and value chains that set the nation apart from its neighbours and from other emerging economies. The World Economic Forum ranks the Kingdom 6^th in the world for Local Supplier Quantity and 24^th for both Value Chain Breadth and Production Process Sophistication. Well established, competitive and efficient, Saudi Arabia’s domestic industries – from energy and chemicals to transportation – provide industrial projects with exceptional opportunities for cost savings.

There are opportunities at all levels in:

• Oil, gas and petrochemicals
• Power, including nuclear and renewable energy
• Water and wastewater
• Financial and professional services
• Education, training and human capital development
• Mass transport infrastructure including new rail, metro and bus links
• Environmental technology and services
• ICT
• Consumer and luxury goods
• Defence and security
• Healthcare and Life Sciences
• Mining

Key Sectors

Energy
The KSA’s most prominent sector is poised for unprecedented growth, diversification and profitability. The high oil revenue environment has spurred a boom in both oil and non-oil development projects. Unlike previous investment cycles the current round of investment projects is marked by heavy private sector participation with USD $79 billion in private-sector energy projects under development. Activity in the world’s premier energy economy will develop rapidly as large scale capital spending is applied to building new capacity and expansion of existing facilities. For example, the Arab Oil and gas directory forecasts major new energy investments in KSA, including:

Petrochemical projects USD $90 billion

-  Power generation USD $90 billion

-  Water desalination plans USD $88 billion

-  Natural gas-related projects USD $50 billion

Education
Already the world’s 8^th highest education spender, Saudi Arabia recently initiated a complete reform of the current education system, building new educational institutes and funding overseas degrees and training programmes for Saudi students. The primary focus regarding the education sector is to educate young Saudis to fill jobs which are currently being held by expatriates. Despite this budget figure, it's vital for Saudi Arabia to attract a substantial amount of foreign investment in education to meet rapid growth demands.

Security and Defence
Defence & Security sector is one of the important sectors in Saudi Arabia, providing enormous opportunities for British companies. Security is a fast growing sector which is currently estimated to be worth between SR 2.27 - 2.51 billion (USD $605 - $670 million.) Of this figure, around SR 318.8 million (USD $85 million) accounts for physical and electronic security for the banking sector. The balance is for government, industrial, retail, residential and commercial sectors. The Saudi government's defence budget continues to grow, standing approximately at SR 153.8 billion USD $41 billion. The Saudi defence relationship with the UK remains strong,as shown by the recent order for 72 Typhoon aircraft.

Construction
Saudi Arabia represents the largest construction market in the Middle East and one of the fastest growing construction markets in the world. They key areas that are currently being focussed on are improving infrastructure, transport, education and real estate all of which will require construction related activity. According to SAGIA, there is a USD $100 billion planned investment over the next 10 years in transport projects.

Financial and Professional Services
The Saudi banking sector is stable and has not experienced much turmoil during the global financial crisis. The Saudi Stock Exchange (Tadawul) is now the largest in the Gulf region. The Stock Exchange is keen to attract limited foreign participation, develop the derivatives market and to start up a future market for other than just oil. It will shortly move to the new King Abdullah Financial District in Riyadh along with major banks and other service providers.

Healthcare
Healthcare is a thriving sector as the government continues to finance healthcare for its rapidly growing population. Saudi Arabia is the largest market for medical equipment and healthcare products in the Middle East, with the opportunity to cater to unmet demand across the healthcare value chain including medical education, research, facilities, provision and reimbursement.

ICT
Saudi Arabia is the region's largest IT market with strong growth in consumer and enterprise end markets. Huge public investments on infrastructure, health and education have paved the way for advanced technology and security systems in the country with the government planning for the industry to raise its contribution to the GDP by 20 percent by 2020. The IT market in the country was valued at USD $3.6 billion in 2011 and is expected to go up to USD $4.9 billion by 2014.

Liberalisation is occurring across the telecommunications industry, driving increases in competition, service levels and usage. Significant unmet demands for web-based and mobile services and increased enterprise and government commitment for web-based services provide large-scale opportunities for contractors and service providers, with massive public investment in connectivity for Economic Cities, providing unique opportunities for greenfield projects covering millions of users. 

Industrial Cities
Today, industrial products make up more than 90 percent of the Kingdom's non-oil exports. Saudi Arabia exports petrochemicals, plastics, metal goods, construction materials and electrical appliances to more than 90 countries.

The Saudi Industrial Property Authority (MODON), is responsible for developing and supervising industrial land in the Kingdom. Their aim is to promote and regulate Industrial Estates and Technology Zones and to encourage the private sector to become involved in their development and operation. Since it was created in 2001, MODON has been working towards a Saudi development vision for the 21st century. They are currently building six new industrial cities and have expressed an interest in dealing with UK consultants for master planning, design, operation and maintenance, and facilities management.

Economic Cities
In addition to the sectors and industrial cities mentioned above, Saudi Arabia is investing billions of dollars into the launch of four Economic Cities in different regions of the country:

• King Abdullah Economic City - Rabigh (near Jeddah)
• Prince Abdul Aziz bin Mousdaed Economic City - Hail
• Knowledge Economic City - close to Al Madinah
• Jazan Economic City - close to Jazan City

These cities, once constructed, will be public-private partnerships that will create attractive investment platforms for foreign companies. Each is designed to maximise investment potential in all sectors and deliver huge advantages to business located there. The cities will promote economic diversification, create over a million new job opportunities, homes for 4-5 million people and contribute an estimated USD $150 billion to Saudi’s GDP.

Source: DoingBusinessGuide