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Saudi-Turkey Ties Grow with Erdogan Visit, Agree to Form ‘Strategic Cooperation Council’
- December 30,2015
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- SUSTG Team
Turkish President Recep Tayyip Erdogan visited Saudi Arabia this week to meet with top Saudi officials to discuss security and energy cooperation. Erdogan said his government and Saudi Arabia are working “in solidarity and consultation” to find a political solution for Syria, as both countries push for an agreement that would remove Assad from power, […]
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Early Look at Saudi Arabia’s 2016 Budget Reveals Spending at $226b
- December 28,2015
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- SUSTG Team
Saudi officials revealed the Kingdom’s 2016 budget at a press conference today in Riyadh, a budgeted spend of 840 billion riyals ($224 billion) and forecasted revenue at 513 billion ($137 billion). The budget plan aims to reduce the fiscal deficit while raising revenues from sources other than oil. King Salman said that Saudi Arabia’s economy […]
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‘Major Economic Shake-Up’ In the Works for Saudi Arabia
- December 21,2015
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- SUSTG Team
Saudi Arabia’s deputy crown prince Mohammed bin Salman, Minister of Defense and chair of the powerful Council of Economic and Development Affairs, is planning a major economic shake-up that involves “plans to reshape the economy to withstand low oil prices,” sources told Reuters privately. The strategy includes state spending reforms and privatizations. Bloomberg reports that Saudi officials […]
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Foreign Minister Al-Jubeir Discusses Yemen, Islamic Military Alliance in France 24 Interview
- December 18,2015
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- SUSTG Team
In an interview with France24 on YouTube, Saudi Arabia’s foreign minister Adel Al-Jubeir discussed the ongoing Yemen peace talks in Geneva, the situation in Yemen, the newly created Islamic Military Alliance and also responded to a question about Donald Trump’s recent remarks regarding Muslims in America. On the conflict in Yemen, Al-Jubeir said that he hoped […]
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No Change in Oil Strategy As Producers Continue With Pursuit of Market Share
- December 4,2015
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- SUSTG Team
OPEC appeared likely to maintain its policy of high production levels at its annual meeting in Vienna, according to reports, a decision that will continue downward pressure on crude prices in favor of greater market share. The decision to stick to the strategy was expected, but it is risky for countries that need the revenue, […]
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All Eyes on Vienna as OPEC’s 168th Meeting Marks One Year of Saudi-led Strategy to Squeeze High Cost Producers
- December 1,2015
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- SUSTG Team
The oil-producing nations of OPEC convene in Vienna on Friday, exactly one year since Saudi Arabia took the lead on its strategy to ramp up output to drive out higher-cost producers and secure market share. The results have been a global oil market in a state of persistent oversupply and unexpected resilience from smaller producers. Saudi […]
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Jeddah Construction Gets Boost with $2.2b Real Estate Fund
- November 30,2015
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- SUSTG Team
A new real $2.2 billion estate fund will drive ongoing construction at the Kingdom Tower Jeddah and the surrounding development, slated to become the world’s tallest building upon its targeted completion in 2018. Jeddah Economic Co., co-founded by Saudi billionaire Prince Alwaleed Bin Talal’s Kingdom Holding Co., is forming the 8.4 billion-riyal ($2.2 billion) real estate […]
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‘The key challenges are our overdependence on oil and the way we prepare and spend our budgets’, Saudi Deputy Crown Prince Mohammed bin Salman Says to NYT Columnist Friedman
- November 25,2015
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- SUSTG Team
In an op-ed published today in the New York Times, columnist Tom Friedman discussed his recent visit to Saudi Arabia and the seismic shift in governance in the Kingdom over the last year. The columnist spent an evening with one of the Middle East’s most powerful leaders, Deputy Crown Prince Mohammed bin Salman, and said the […]
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Report: Saudi Arabia to Work with OPEC to ‘Stabilize Prices’
- November 24,2015
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- SUSTG Team
A Bloomberg report citing the Saudi Press Agency said the Kingdom would work with producers within and outside the Organization of the Petroleum Exporting Countries to stabilize the market. The news sent oil price futures higher on international indices on Monday, but speculation about a global supply glut and signs of rising U.S. stockpiles caused […]
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Land Tax Finalized: 2.5% Annual Fee on Property Approved in Cabinet Session Chaired by King Salman
- November 23,2015
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- SUSTG Team
Saudi Arabia’s cabinet, in a meeting chaired by King Salman, finalized a 2.5% fee on undeveloped land within city limits intended for residential or commercial use, according to the SPA and reports. Property experts told the Saudi Gazette that the fee could raise up to $13 billion (SR50 billion) worth of revenues annually for the government. The […]
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MUST-READS
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ISIS DoctrineSaudis at War With Islamic State Confront Echo of Kingdom’s Past
A key difference is “the caliphate agenda,” Commins said, referring to the title used by Islamic State’s leader, Abu Bakr al-Baghdadi. The revival of a term used by earlier Islamic leaders suggests a wider ambition to rule all Muslims. “That was never part of Wahhabi doctrine,” Commins said. Abdulaziz halted his expansion once most of the Arabian Peninsula was conquered, and turned against the Ikhwan, whose main leaders later surrendered to the British. That history underscores another distinction with Islamic State, that between an established power and an expansionist upstart, according to James Dorsey, a senior fellow in international studies at Nanyang Technological University in Singapore.
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Influential MuslimsSaudi King Abdullah named world’s most influential Muslim
The list accords him the place in light of Saudi Arabia being home to Islam’s two holy cities of Makkah and Madina, which millions of Muslims visit throughout the year, as well as the kingdom’s oil exports. Rounding out the top three are Dr Ahmad Muhammad al-Tayyeb, grand sheikh of Al-Azhar University and grand imam of Al-Azhar mosque, and Iran’s Supreme Leader Ali Khamenei. The top nine are all political leaders and royals, including Morocco’s King Mohammed VI and Turkish President Recep Tayyip Erdogan.
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Facilities ManagementFacilities Management in KSA: Fit for a king
With a recent report by MEED Insight noting that there are $417bn worth of construction projects lined up in Saudi Arabia's future, it shouldn't be too hard to figure out why facilities management (FM) companies are all hurrying to start operations in the Kingdom. The country is, after all, seeing some amazing developments being planned and executed, and FM expertise can play a key role in ensuring that these properties, once built, are operated and maintained effectively and efficiently.
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Global Oil MarketsCheap Oil: The Kingdom Strikes Back
Are the Saudis trying to put the frackers in their place? Perhaps. But it’s more likely that the kingdom is focused, as it has been for the past decade or so, with bringing opposition within OPEC to heel. The Saudis are locked in a struggle with Iran for the control of the cartel, and the two countries now are playing a game of chicken over prices. Both said they intend to keep producing regardless of how far prices fall. Whose economy can hold out the longest? The Saudis are happy to take that bet.
- Bloomberg - U.S. Imports of Saudi Crude Rebound From Four-Year Low
- Bit Tooth Energy - Tech Talk - Pessimistic Talk in a time of surplus
- Bloomberg - Don’t Mess With Saudis in Oil Bear Market Global Shakeout
- Foreign Policy - Alleged Oil Shock Isn't All That Shocking
- CSM - $100 … $80 … $70? $60? $50? How low will oil prices go? (+video)
- BBC News - Is the oil crash a secret US war on Russia?
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FinanceThe Saudi Banking sector and fiscal policy
The continued build-up of deposits is a positive when the banks can and must play a bigger role in driving economic development. There have been structural developments to accelerate the momentum in certain areas, for example, the mortgage law. But, in general, the banks are essential for driving private sector-led development in an economy that has historically relied very heavily on government provision and investment.
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MoroccoFrom palaces to engine-making: Morocco’s stability is attracting billions in foreign investments
Morocco has escaped the worst of the unrest that swept parts of the Middle East and North Africa since 2011 from the violent ousting of autocratic governments to the rise of extremist groups such as ISIS. The country’s main Islamist party, which has led the government since winning its first parliamentary elections three years ago, has shied away from challenging the legitimacy of the royal family. King Mohammad VI, in return, devolved some powers to the government and released Islamist activists from jail.
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DevelopmentSaudi King Gets New Neighbors as Morocco Evades Regional Turmoil
The $346 million plan by Jeddah-based Saudi Binladin Group will turn 250 hectares of former local-authority land into homes for 150,000 people, hospitals and an artificial lake.
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Business3M expands its presence in Kingdom
“Saudi Arabia is at the core of our growth strategy in the Middle East and Africa region and in order to support our rapid growth in the country and the wider region, we will be looking at building our local capability in manufacturing and technical and are pursuing opportunities around this,” said Osama J Hammoudeh , Managing Director 3M Saudi Arabia.
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Kingdom TowerSaudi Kingdom Tower buys world’s largest crane
With the tower’s foundation now in place, vertical, above-ground construction commenced in September. Plans call for the first ten floors to be completed by the end of the year. The Kingdom Tower features 170 stories, seven stories of which will be allocated for the five-star Four Seasons Hotel offering 200 rooms and121 luxury serviced apartments, and seven stories for offices.
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Information TechnologyGovernment IT spending fuels Kingdom of Saudi Arabia’s innovation economy
Overall IT spending in the Kingdom - the Middle East's largest IT market - is set grow by 23 percent from US$ 11.5 billion in 2014 to US$ 14.2 billion in 2017 according to IDC's report 'Saudi Arabia Vertical Markets 2013-2017 IT Spending Forecast'. Government will be the fastest-growing vertical in this period, with a compound annual growth rate of 12.9 percent, according to IDC. Guiding investment is the Kingdom's Ninth Development Plan, which projects a 27 percent increase in government spending from SAR 150 billion in 2009 to SAR 191 billion in 2014.
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