A Saudi investor monitors stocks at the exchange market department at the Saudi Investment Bank. AFP
A Saudi investor monitors stocks at the exchange market department at the Saudi Investment Bank. AFP

KSA's new bank boss comes in from the cold



The appointment last week of Fahd bin Abdullah Al Mubarak as the governor of the Saudi Arabian Monetary Agency (Sama), the kingdom's central bank, was a surprise in several respects and a minor victory for the country's modernisers.

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Mr Al Mubarak was given a job that has traditionally been reserved for Saudis who had loyally served their time within Sama's complicated bureaucracy; Muhammad Al Jasser, his predecessor, did three years in the top job, but had previously served a decade in less senior Sama positions.

In contrast, Mr Al Mubarak came direct from the sharp edge of the investment banking business, where he was the chairman and managing director of Morgan Stanley's Saudi business.

He had also been the chairman of the Tadawul, the Saudi stock exchange, and had played an important advisory role in the 2002 privatisation of Saudi Telecom. "Nobody before has been head of Sama who has had this degree of private-sector experience," says a senior Saudi expert.

With a doctorate in business administration from the University of Houston in Texas (a favoured learning centre for the Saudi elite), Mr Al Mubarak also served on the Shura Council, the government advisory body, a mark of his acceptability to the kingdom's establishment.

In other respects, he is something of an outsider: he comes from Hofuf in the kingdom's eastern province of Al Ahsa, rather than the traditional breeding ground for Saudi's ruling elite in the Buraidah region north of Riyadh. In his early 50s, he is also comparatively young by the standards of the Saudi ruling classes.

"He's a break from tradition, and will bring a new perspective on the big issues currently facing the Saudi economic and financial system." says the Saudi expert.

Sama has two main roles: a responsibility (along with the ministry of finance) for the kingdom's monetary policy; and the position of top regulator for the banking and financial sectors. Each has its challenges.

Regulation is probably the most straightforward. The Saudi banking system is well capitalised, with high ranking on the international "stress test" criteria such as capital and liquidity ratios.

Nevertheless, it went through a mini-crisis two years ago following the "name lending" scandal that resulted in the downfall of two of the kingdom's biggest financial players, the Al Gosaibi business empire and the Saad Group, owned by Maan Al Sanea.

Sama participated in the government's task force that investigated that disaster, and put its name to the eventual recommendations of the so-called "king's committee" that told the two groups to sort out their problems and settle with Saudi bank creditors.

"There has been a significant amount of progress in dealing with the 'name lending' problems already," says Jarmo Kotilaine, the chief economist at Saudi Arabia's National Commercial Bank. "The banks have largely dealt with the issue themselves, and Sama will support them."

It remains to be seen whether Mr Al Mubarak will take a new stance towards the international creditors of the Al Gosaibi affair, left with some US$16 billion (Dh58.77bn) of debts that some fear will never be settled.

Another priority for the new governor will be to encourage a further expansion of bank credit within the economy. Lending virtually dried up in the aftermath of the 2008 liquidity crisis, and while there has been some improvement, the growing economy needs more.

"There needs to be further growth in the domestic credit market," Mr Kotilaine says. "Year-on-year credit growth has been around 10 per cent, but with inflation at 5 per cent or so, more could be done."

Inflation is still an issue for the Saudi economy, especially in relation to rents and food prices for its young population with a large employment problem.

The government reacted quickly and decisively to the issues raised in other Middle East countries by the Arab Spring, with a $130bn programme of public investment. But this also brings its own inflationary pressures, which Mr Al Mubarak will have to manage.

The government recently announced it was considering a series of sukuk (Islamic bond) issues specifically designed to support infrastructure investment, and it will probably fall on Sama to organise the details of that sales programme.

Mr Al Mubarak will play a big role in two other areas of crucial importance to the country, and the kingdom's standing in the global financial community: the further opening up of the economy to international investors; and the stop-go question of greater monetary union in the GCC region.

"There is agreement on the desirability of an open economy and more competitive marketplace, but in Saudi there has to be continuity too," Mr Kotilaine says.

On GCC monetary union, a process has started, but a final plan is still some way off. "The regional markets are not ready for a significantly different exchange rate regime, even if the political will could be found," Mr Kotilaine says.

Mr Al Mubarak has plenty in his in-tray to be getting on with.

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COMPANY%20PROFILE%20
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How to join and use Abu Dhabi’s public libraries

• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.

• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.

• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.

• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.

• For more information visit the library network's website.

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
Book%20Details
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COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
The biog

Name: Dhabia Khalifa AlQubaisi

Age: 23

How she spends spare time: Playing with cats at the clinic and feeding them

Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need

Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman

Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs 

Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing

The specs: 2019 Mini Cooper

Price, base: Dh141,740 (three-door) / Dh165,900 (five-door)
Engine: 1.5-litre four-cylinder (Cooper) / 2.0-litre four-cylinder (Cooper S)
Power: 136hp @ 4,500rpm (Cooper) / 192hp @ 5,000rpm (Cooper S)
Torque: 220Nm @ 1,480rpm (Cooper) / 280Nm @ 1,350rpm (Cooper S)
Transmission: Seven-speed automatic
Fuel consumption, combined: 4.8L to 5.4L / 100km

Biography

Favourite book: Zen and the Art of Motorcycle Maintenance

Holiday choice: Anything Disney-related

Proudest achievement: Receiving a presidential award for foreign services.

Family: Wife and three children.

Like motto: You always get what you ask for, the universe listens.

Full Party in the Park line-up

2pm – Andreah

3pm – Supernovas

4.30pm – The Boxtones

5.30pm – Lighthouse Family

7pm – Step On DJs

8pm – Richard Ashcroft

9.30pm – Chris Wright

10pm – Fatboy Slim

11pm – Hollaphonic

 

Uefa Nations League

League A:
Germany, Portugal, Belgium, Spain, France, England, Switzerland, Italy, Poland, Iceland, Croatia, Netherlands

League B:
Austria, Wales, Russia, Slovakia, Sweden, Ukraine, Republic of Ireland, Bosnia-Herzegovina, Northern Ireland, Denmark, Czech Republic, Turkey

League C:
Hungary, Romania, Scotland, Slovenia, Greece, Serbia, Albania, Norway, Montenegro, Israel, Bulgaria, Finland, Cyprus, Estonia, Lithuania

League D:
Azerbaijan, Macedonia, Belarus, Georgia, Armenia, Latvia, Faroe Islands, Luxembourg, Kazakhstan, Moldova, Liechtenstein, Malta, Andorra, Kosovo, San Marino, Gibraltar

Results

5.30pm: Maiden (TB) Dh82,500 (Dirt) 1,600m, Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)

6.05pm: Maiden (TB) Dh82,500 (Turf) 1,400m, Winner: Mayehaab, Adrie de Vries, Fawzi Nass

6.40pm: Handicap (TB) Dh85,000 (D) 1,600m, Winner: Monoski, Mickael Barzalona, Salem bin Ghadayer

7.15pm: Handicap (TB) Dh102,500 (T) 1,800m, Winner: Eastern World, Royston Ffrench, Charlie Appleby

7.50pm: Handicap (TB) Dh92,500 (D) 1,200m, Winner: Madkal, Adrie de Vries, Fawzi Nass

8.25pm: Handicap (TB) Dh92,500 (T) 1,200m, Winner: Taneen, Dane O’Neill, Musabah Al Muhairi

Company Profile

Company name: NutriCal

Started: 2019

Founder: Soniya Ashar

Based: Dubai

Industry: Food Technology

Initial investment: Self-funded undisclosed amount

Future plan: Looking to raise fresh capital and expand in Saudi Arabia

Total Clients: Over 50

UAE rugby season

FIXTURES

West Asia Premiership

Dubai Hurricanes v Dubai Knights Eagles

Dubai Tigers v Bahrain

Jebel Ali Dragons v Abu Dhabi Harlequins

UAE Division 1

Dubai Sharks v Dubai Hurricanes II

Al Ain Amblers v Dubai Knights Eagles II

Dubai Tigers II v Abu Dhabi Saracens

Jebel Ali Dragons II v Abu Dhabi Harlequins II

Sharjah Wanderers v Dubai Exiles II

 

LAST SEASON

West Asia Premiership

Winners – Bahrain

Runners-up – Dubai Exiles

UAE Premiership

Winners – Abu Dhabi Harlequins

Runners-up – Jebel Ali Dragons

Dubai Rugby Sevens

Winners – Dubai Hurricanes

Runners-up – Abu Dhabi Harlequins

UAE Conference

Winners – Dubai Tigers

Runners-up – Al Ain Amblers

THE CARD

2pm: Maiden Dh 60,000 (Dirt) 1,400m

2.30pm: Handicap Dh 76,000 (D) 1,400m

3pm: Handicap Dh 64,000 (D) 1,200m

3.30pm: Shadwell Farm Conditions Dh 100,000 (D) 1,000m

4pm: Maiden Dh 60,000 (D) 1,000m

4.30pm: Handicap 64,000 (D) 1,950m

'Dark Waters'

Directed by: Todd Haynes

Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper 

Rating: ****

Meatless Days
Sara Suleri, with an introduction by Kamila Shamsie
​​​​​​​Penguin 

MATCH INFO:

Second Test

Pakistan v Australia, Tuesday-Saturday, 10am​​ daily​​​​​ at Zayed Cricket Stadium, Abu Dhabi

Entrance is free

Adele: The Stories Behind The Songs
Caroline Sullivan
Carlton Books

MATCH INFO

Uefa Champions League last 16, first leg

Liverpool v Bayern Munich, midnight, Wednesday, BeIN Sports

Start-up hopes to end Japan's love affair with cash

Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.

Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.

Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.

Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.

Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.

Which products are to be taxed?

To be taxed:

Flavoured water, long-life fruit juice concentrates, pre-packaged sweetened coffee drinks fall under the ‘sweetened drink’ category

Not taxed

Freshly squeezed fruit juices, ground coffee beans, tea leaves and pre-prepared flavoured milkshakes do not come under the ‘sweetened drink’ band.

Products excluded from the ‘sweetened drink’ category would contain at least 75 per cent milk in a ready-to-drink form or as a milk substitute, baby formula, follow-up formula or baby food, beverages consumed for medicinal use and special dietary needs determined as per GCC Standardisation Organisation rules

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
THE SPECS

Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now

The specs: 2018 Jeep Grand Cherokee Trackhawk


Price, base: Dh399,999
Engine: Supercharged 6.2-litre V8
Gearbox: Eight-speed automatic
Power: 707hp @ 6,000rpm
Torque: 875Nm @ 4,800rpm
Fuel economy, combined: 16.8L / 100km (estimate)

List of UAE medal winners

Gold
Faisal Al Ketbi (Open weight and 94kg)
Talib Al Kirbi (69kg)
Omar Al Fadhli (56kg)

Silver
Zayed Al Kaabi (94kg)
Khalfan Belhol (85kg)
Zayed Al Mansoori (62kg)
Mouza Al Shamsi (49kg women)

Bronze
Yahia Mansour Al Hammadi (Open and 94kg)
Saood Al Hammadi (77kg)
Said Al Mazroui (62kg)
Obaid Al Nuaimi (56kg)
Bashayer Al Matrooshi (62kg women)
Reem Abdulkareem (45kg women)

Race card

6.30pm: Maiden (TB) Dh 82,500 (Dirt) 1.600m

7.05pm: Maiden (TB) Dh 82,500 (D) 2,000m

7.50pm: Handicap (TB) Dh 82,500 (D) 1,600m

8.15pm: The Garhoud Sprint Listed (TB) Dh 132,500 (D) 1,200m

8.50pm: The Entisar Listed (TB) Dh 132,500 (D) 2,000m

9.25pm: Conditions (TB) Dh 120,000 (D) 1,400m