Saudi Arabia’s economic growth is expected to pick up further this year despite threats due to global economic slowdown and its possible impact on the oil market, the Kingdom’s Central Bank said.
Reports published by the Saudi Arabian Monetary Authority (SAMA) noted that the Kingdom’s economic growth recovered to 2.2 percent in 2018 in comparison to a 0.7 percent decline the previous year. The growth was triggered mainly by the oil sector, which progressed 2.9 percent while the non-oil sector grew by 1.7 percent in 2018, compared to 1 percent in 2017.
The growth of the Kingdom’s non-oil sector is expected to be stimulated by expansionary fiscal policy as the budget for 2019 shows a significant increase in capital expenditure by SR245 billion, the report said.
The country’s non-oil revenues rose 90 percent in 2018 compared to the previous year and reached SR287 billion, with more than half coming from tax revenues, while government expenditure rose by 11 percent to SR1 trillion in 2018.
Whether your business is established or you’re a start-up with only a handful of staff, there is no denying that businesses operate more effectively from serviced offices. A serviced office enables you and your staff to simply move in without any worries. Also, these offices permit you to carry out your day to day operation from the onset without any disruptions or delays. Serviced offices are also less expensive than a conventional office as you would be sharing the space with like-minded entrepreneurs and business owners. When taking into consideration all the amenities that come along with a serviced office, it’s often a more cost-effective choice. Lastly, Serviced offices give business owners and their staff greater flexibility to decide how they run their business.
Service Offices are Fitted Out
Services Offices come with all the trimmings you need. You get to have your office space designed and configured in the way that best suits your business. And the essentials like desks, chairs and storage units come ready to be used. If you were renting a conventional office, then you would need to purchase all your furniture in advance. This is because a conventional office normally just comes as an empty space. There are some serviced offices that can also customize your office in a layout that is specific to your needs. In addition, your branding can be featured throughout your office – thus making your brand more appealing to clients.
Most serviced offices come with a host of support staff at your disposal. These can include IT support staff, receptionists and staff for maintenance. This allows your staff to better utilize their time working on your projects. You may have a group of experts in your field, but their time is wasted if they’re answering trivial emails all day (or performing customer service tasks on the telephone). This is also a proven method of managing costs – as you’re not having to engage a third-party to perform additional tasks.
If you’re a business owner that elects to rent a conventional office, then you’re taking a risk by doing so. Your business may experience setbacks and you may not be able sustain it. It also needs to be acknowledged that conventional offices are generally a long-term commitment. This is because there is often a long-term lease that first needs to be agreed upon. By selecting a serviced office, you’re given more flexibility. This is because you can first agree upon a space that matches your business needs, and then have the option to expand to a larger fit-out as your business grows.
An HR department is crucial in establishing a mutually beneficial relationship between employers and employees. HR Advisory Services provide businesses with an expert source of advice that can be filtered through to their HR department. Through hands-on consultation with an HR department, HR advisory services can help to overhaul an organization’s HR processes. An HR advisory service will assist a company to implement best practices regarding the management of staff. In addition, advisory services will seek to improve employee engagement levels through the development of a defined employee welfare system. This will lead to greater staff performance and better results on a company-wide scale.
A Better HR Management System
An HR advisory service will better align your HR processes to the specific needs of your business. Depending on the environment and culture of your business, your HR processes will need to be refined in a certain way. An HR advisory service can help your business to implement a system that creates greater staff engagement. An advisory service can also work with you to ensure that any staff-based challenges are met in accordance with industry best practices. They can then streamline your entire HR system – from the on-boarding of new staff, through to any disputes and termination procedures.
Defined HR Policies
Instead of an assumed list of policies, an HR advisory service can assist you to develop strategies that are clearly defined.
An advisory service can provide you with the necessary guidelines to ensure you adhere to policies in your industry. So, rather than creating policies that are ill-informed, you can implement policies that meet the legal requirements of your industry. An advisory service can put in place a welfare program that looks after your staff. When your staff are looked after, they tend to be more engaged and more productive. This leads to a better outcome for all members of the organization.
More information about Saudi Arabia’s new “Green Card” style residency scheme for qualified international experts has been published in Saudi government’s official gazette,the Um Al-Qura newspaper.
The new scheme allows highly skilled global entrepreneurs, innovators and investors to work and live in the Kingdom without a Saudi sponsor and they can permanently reside, own property and invest in the Kingdom.The regulations governing the mechanisms of the scheme, such as applicant fees, have not yet been decided by the authorities and a special committee has been set up and given 90 days to make decisions.
Moreover, eligibility of the Privileged Iqama applicants will be determined by a number of bodies headed by the Ministry of Commerce and investment. Applicants should be company owners who can invest in the Kingdom, or must possess scientific or professional skills that are not abundantly found and are of high demand in the Kingdom.
A Saudi Green Card holder will be considered as a resident while applying other statutory provisions like tax provisions, irrespective of how much time he spends outside the Kingdom in the course of the year. Applicants must hold a valid passport, should be financially solvent, should be at least 21 years of age, if he is staying in the Kingdom, should be holding a valid Iqama, should possess a certificate of no criminal record, devoid of any previous offences, and should present a sound medical report.
The rights of a Privilege Iqama holder includes possession of private means of transport and any other movable properties that an expat is allowed to acquire as per the Saudi law, employment in private sector companies and transfer between them(including the beneficiary’s family members) except for jobs from which non-Saudi’s are banned, freedom to leave the Kingdom and return to it independently, use of queues designated for Saudi nationals while entering and exiting the Kingdom through its ports, and performing business under the foreign investment system.
Even though a Privilege Iqama does not entitle the holder to Saudi citizenship, its holder can enjoy several other benefits including residence in Saudi Arabia with his family, the right to issue visitor’s visas for relatives, the recruitment of domestic workers, the possession of property for residential, commercial and industrial purposes excluding Makkah, Madinah and border areas as per regulations. However, they can utilize property in Makkah and Madinah for a period not exceeding 99 years.
The Privilege Iqama can be cancelled if the holder did not comply with the responsibilities stipulated in Article 7 of the law, waivered his residency, or passed away or was no longer eligible.
The Saudi Shoura council approved the launch of a new Green Card style “Special Privilege Iqama” (residence permit) scheme to attract affluent foreign entrepreneurs and investors to the Kingdom, marking an end to the age-old Khafeel (sponsorship) system.
The new scheme will not require foreigners to have a Saudi sponsor or employer and its added benefits will include family privileges, the ability to obtain visas for relatives, recruit workers, own property and transport, employment in the private sector, commerce and industry, enter and exit the Kingdom without a sponsor, and use of designated queues at airports.
Crown Prince Muhammed bin Salman said that the proposed Green Card system would be implemented within the next five years and enable Arabs and Muslims to live for longer periods of time in the Kingdom. He added that it will be one of the sources of investment in the Kingdom.
Under the new system, which requires a guarantee of specific fees, there will be two types of residence permits, a permanent Iqama which can be used for an unlimited period of time and a temporary Iqama valid only on a yearly basis and subject to renewal.
The six conditions for obtaining Special Privilege Iqama include – holding a valid passport, applicant should be financially solvent, applicant should be at least 21 years of age, if he is staying in the Kingdom, he should be holding a valid Iqama, he should possess a certificate of no criminal record, devoid of any previous offences, and he should present a sound medical report.
The system is expected to have a positive impact on the Saudi economy – attracting financiers, highly skilled expatriates, people with high financial capability, experienced and leading figures to invest in the Kingdom as well as coming up with ideas leading to contributing to diversifying the Saudi economy and solving cases in which investors resort to tasattur.
Expatriates will have to make payment of a special fee determined by the Executive Regulations which has not yet been revealed and a center called the Center of Distinguished Iqama has been established for the purpose.
You must have heard the phrase ‘nobody is an island’ several times. The wisdom in that quote doesn’t just hold for humans alone; it works for companies and businesses as well. Regardless of what the enterprise is, either small scale or large scale, whatever sector it is situated in, they require a business support service. Just as an island cannot ward off predators alone, a business also cannot fend for itself. Business support services include (but are not limited to) manufacturing, warehousing, logistics, banking, marketing and every link found on the value chain of a business which takes it from the producer to the end consumer. Here are three reasons why hiring a business support service is one of the best decisions every business can make.
Business Support Services Have and Can Deploy Specialized Services You Alone Cannot Deploy
Every business has its niche and area(s) of strength, which sets them apart from their rivals. They need the help of business support services to retain their rightful position as they cannot render certain specialized services. For example, an agricultural company which requires the use of technology will have to outsource the work to an IT firm who has the resources to deliver optimal results. In some cases, they can train the staff of the agricultural business on the IT-related issue.
Business Support Services Have the Requisite Training, Qualification, and Certification
Business support services are trained to handle the task assigned to them better than your business does. They also have the qualifications and certifications which your business lacks. This is one of the most persuasive reasons for choosing to use business support services
Business Support Services Allows for Focus
Business support services play a vital role in allowing a business to work on their ‘core’ business while they take care of the other tasks. It enables the company to concentrate on its primary job.
Apart from this, business support services have garnered experience over the years. Their expertise cannot be quantified and replaced at the snap of the fingers. Hence hiring business support services is a necessity, not a luxury.
The Kingdom of Saudi Arabia is known for many things, but only a few know it as a place where business can begin, flourish and prosper. For a long time, she held the record as a haven for tourists, a world leader responsible for regulating the sale, supply, and distribution of refined crude oil to the world. Only a few know that there are numerous other profitable business ideas for potential investors, businessmen or women, and budding entrepreneurs to take advantage of irrespective of what they must have seen or heard. If you fall within the category of individuals who are ready to do business in Saudi Arabia, here are the top five ideas for you.
Sales, Supply, And Support for Health-Care Related Matters
For a country that receives millions of people either for tourism or business daily within her borders, no endeavor seems more profitable and lucrative than healthcare. While you may not be a healthcare specialist, you can be involved in sales, supplies of medical equipment or rendering support services according to the country’s regulations.
Sales, Supply, And Training of Security Staff or Other Related Materials
Security is paramount for every community, especially for a vast country such as Saudi Arabia who is more exposed to security risks because of its booming tourist industry. While we may all agree that security is a sole responsibility of the government, the government sometimes requests partnerships with security companies for the sale of security apparatuses, consultancy, and training of personnel. Not forgetting privately owned businesses, the market for security in Saudi Arabia is both viable and profitable.
Construction and Real Estate Matters
The nature of Saudi Arabia is structured to be an environment that supports various construction on an almost regular basis, so if you are looking for a profitable and lucrative business to start in 2019, think building and real estate.
Language Tutoring and Training
Any country ready for business will be prepared to learn and teach her citizens other people’s language. Which is why one of the lucrative markets to start this year in Saudi Arabia are centers that teach English, Chinese and other languages.
Agriculture and Food Production
You must have heard that ‘green is the new black,’ referencing the emergence and the dominance of agriculture over oil products and production. This is not exclusive of other countries with Saudi Arabia as an exception. Agriculture and food production stand as one of the most lucrative and profitable businesses to do in 2019 at KSA.
In conclusion, we acknowledge that there are indeed more money-spinning ventures that have been tested and trusted. If you like the ones we have listed let us know.
Saudi Arabia should utilize the latest technological advances that have impacted the society effectively on its strive to become the digital hub of the region, the Global Digital Government Summit organized by the new Saudi e-Government program, Yesser, under the title “Putting Citizens First” noted.
Ali Al-Asiri, CEO of Yesser, said the summit was “very important to our country, and the future of all countries and societies. The world has changed in the past decade at a speed that has not been seen for centuries”. He added that the Saudi government needed to re-evaluate its role in the society and review the services it provided.
The forum, attended by more than 200 executive directors of information technology from government departments across the Kingdom, focused on the future of government services and explored how authorities around the world are leveraging digital technology to move towards a unified and citizen-friendly service delivery model.
The gathering discussed the latest technological advances that have impacted society over the past decade, such as artificial intelligence and robotics, and emphasized on how Saudi Arabia could utilize them to enhance government activities and improve quality of life in the country.
The summit will be held in Saudi Arabia annually as a means to gather local and international experts in the field to discuss further developments in government digitization.
The most awaited World Wrestling Entertainment (WWE) will make its return to Saudi Arabia with a special event hosted by the Saudi General Sports Authority in partnership with WWE at the King Abdullah Sports City Stadium in Jeddah on Friday, June 7, at 8 p.m. The star-studded event, marking the company’s third show in the Kingdom, will feature WWE superstars Roman Reigns, Undertaker, Kofi Kingston, Braun Strowman, Seth Rollins, Goldberg, AJ Styles and Brock Lesnar, and will stream live on WWE Network.
Regional viewing information as well as additional details on the event’s matches, ticket availability and pricing has not been provided yet and will be announced in the coming weeks. Early last year, Saudi Arabia signed a 10-year deal with WWE in line with its social and economic reform program Vision 2030, to run a series of live events in the Kingdom over the course of the next decade.
In April 2018, WWE fans in the Kingdom witnessed the Greatest Royal Rumble at King Abdullah International Stadium followed by the Crown Jewel event at King Saud University Stadium in Riyadh later in November 2018.
Saudi Arabia attained a budget surplus of SR27.8 billion in the first quarter of 2019, in comparison to a budget deficit of SR34.3 billion during the same period last year, the Kingdom’s Finance Minister Mohammed Al-Jadaan said at the Financial Sector Conference (FSC) in Riyadh on Wednesday.
This is the first time that the Kingdom recorded a surplus in its budget since the 2014 oil price slump, and increased income from hydrocarbons’ sales as well as revenue from non-oil industries contributed to the country’s economic growth.
The Kingdom plans to increase state spending by 7 percent this year in an effort to spur economic growth that has been weakened by low oil prices, according to its 2019 state budget.
“We are committed to the reform, this is not about the oil, this is about an economy that needs to be diversified,” said Al-Jadaan. “The ministry has launched initiatives worth SR12.5 billion to support the growth of private sector, including SMEs.”
Foreign investments to Saudi Arabia doubled, while direct investments rose by about 5 percent during Q1, Al-Jadaan noted. Moreover, the Ministry of Finance is working with 18 other ministries to sort out all the obstacles faced by investors. Expenditure in the first quarter amounted to SR 217.6 billion, slightly higher in comparison to last year, he added.