Balanced growth beyond Riyadh vital to Vision 2030, says MBSC dean

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Updated 14 April 2025
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Balanced growth beyond Riyadh vital to Vision 2030, says MBSC dean

RIYADH: As Saudi Arabia accelerates its economic diversification efforts under Vision 2030, ensuring balanced regional development is crucial, according to a senior academic.

Zeger Degraeve, dean of Prince Mohammed Bin Salman College of Business & Entrepreneurship, emphasized the importance of spreading development beyond Riyadh during an interview with Arab News on the sidelines of the Human Capability Initiative in the capital.

“Economic development of the Kingdom outside of the capital city of Riyadh is critical,” Degraeve said. “That still is the intent of KAEC. It’s also the intent of NEOM… you have to bring the whole city along in an economic development process, the whole country.”

He drew parallels with the UK, pointing to regional disparities as a factor in Brexit. “It’s one of the reasons for Brexit, for instance, because of the imbalance in economic development between London and the rest of the UK,” he added.

Degraeve also underscored the role of education in driving sustainable growth, noting that the sector is key to preparing young Saudis for leadership and innovation in a diversified economy.

“Education is a critical strategic sector in Saudi Arabia, with 36 million people and 70 percent below 30,” he noted. “There’s an enormous market that underlines the importance of the sector.” 

MBSC is experiencing rapid growth in student enrollment, signaling strong demand for high-quality academic programs aligned with Saudi Arabia’s evolving economic landscape.

“Four years ago, we graduated 40 students and the next year we graduated 100 students. That was already two and a half times the size of the school,” said Degraeve. “But the year after we graduated 320 students… and this year we have graduated 480 students.”

“That’s an enormous growth which shows the market interest in premium business education in the Kingdom,” he added.

Degraeve credited the surge to the Kingdom’s Vision 2030 initiative, which he said has inspired young Saudis to seek world-class business education that equips them for a dynamic future.

“It is Vision 2030,” he said. “The Saudi youth is really inspired by the business future of the Kingdom… and they are looking for good world-class business education. Prince Mohammed Bin Salman College provides that alternative.”

In response to rising demand across the country, MBSC has expanded its reach through regional partnerships and diversified program delivery.

“Since 2021, we work in partnership with STC Academy to offer our executive MBA program, or Master in Management and a Master in Finance programs here in Riyadh,” Degraeve said.

He continued: “Through Riyadh, we have access to Dammam as well. We are offering programs in KAEC also, which allow us to access Makkah and Madinah.”

The college’s modular program format has also made it easier for working professionals to pursue advanced education without stepping away from their careers.

“It’s a format where students fly in, stay for four days in the program, four days per month over the weekend, and then they are back in the full-time employment,” he explained.

Degraeve emphasized that MBSC’s mission is closely aligned with the Kingdom’s drive to unlock new economic value and diversify its economy.

“The main aim of Vision 2030 is diversification of Saudi’s economy,” he said. “You diversify an economy by taking many, many, many initiatives, value-creating initiatives in a wide range of businesses and industries.”

“Prince Mohammed Bin Salman College develops leaders,” he added. “Leaders do essentially two things… they think about new value-creating initiatives… but that’s not sufficient. Leadership also requires us to act. We sharpen… our students’ execution skills.”

To date, the college has graduated more than 1,200 students, whom Degraeve described as “leaders for the future of the Kingdom.”

He also stressed the importance of preparing students for success on the global stage.

“Actually, we have a duty. It’s a responsibility for us to connect with international organizations,” he said.

Degraeve added: “We make them especially effective to work in Saudi Arabia and the Middle East region… but business is a global activity.”

MBSC has partnered with leading international institutions, including Babson College in the US and Oxford University in the UK, to strengthen its global outlook and educational offerings.


Syria to sign deal to import electricity from Turkiye, minister says

Updated 10 sec ago
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Syria to sign deal to import electricity from Turkiye, minister says

CAIRO: Syria is set to sign a deal to import electricity from Turkiye through a 400-kilovolt transmission line between the two countries “soon,” the Syrian state news agency cited the country’s energy minister as saying on Sunday.
Syria is also working on establishing a natural gas pipeline connecting the Turkish border town of Kilis and Syria’s northern city of Aleppo, minister Mohamed Al-Bashir said.
“The pipeline will allow the supply of 6 million cubic meters of gas per day to power plants in Syria which will contribute in improving the country’s energy situation,” he added.
Syria has suffered from severe power shortages. On separate occasions, the country said it was working with partners including Gulf states, in the energy and electricity sectors.


OPEC+ members to raise oil output by 411,000 bpd in June

Updated 15 min 21 sec ago
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OPEC+ members to raise oil output by 411,000 bpd in June

RIYADH: Eight OPEC+ member states, including Saudi Arabia, have agreed to raise oil production by 411,000 barrels per day in June as part of a gradual rollback of voluntary output cuts, the group has announced.

The decision was reached following a virtual meeting on May 3 and builds on an agreement made on Dec. 5 to gradually and flexibly restore 2.2 million bpd of voluntary cuts starting April 1, the Saudi Press Agency reported.

The June increase is equivalent to three monthly increments and reflects improving market conditions, including declining oil inventories.

The meeting included the Kingdom, Russia, and Iraq, as well as the UAE, Kuwait, Kazakhstan, Algeria, and Oman, all of whom had previously announced additional voluntary reductions in April and November 2023.

In a joint statement, the countries emphasized that the planned increases remain subject to change or temporary suspension depending on market developments, allowing the group to retain flexibility in supporting price and market stability, according to SPA.

The members also reiterated their full commitment to the Declaration of Cooperation, including the additional voluntary cuts agreed during the 53rd meeting of the Joint Ministerial Monitoring Committee held on April 3, 2024.

The statement affirmed that participating countries are determined to fully compensate for any excess production recorded since January 2024.

OPEC+ said it would hold monthly meetings to track market conditions, compliance levels, and progress of the compensation plan. The next meeting is scheduled for June 1 to set production targets for July.


Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

Updated 19 min 45 sec ago
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Saudi Arabia opens May round of Sah savings sukuk with 4.66% return

RIYADH: Saudi Arabia launched the May issuance of its Sah savings sukuk, offering retail investors a fixed return of 4.66 percent as the government continues to push savings participation. 

The sukuk, part of the country’s broader local bond program, is issued by the Ministry of Finance and managed by the National Debt Management Center. It is available for subscription from May 4 at 10:00 a.m. until May 6 at 3:00 p.m. local time, the NDMC said in a statement. 

As part of the Vision 2030 Financial Sector Development Program, the initiative aims to boost personal savings by encouraging regular fiscal habits, expanding product access, and promoting financial literacy to support future goal planning. 

The offering, denominated in riyals, also supports the goal of raising the national savings rate from 6 percent to 10 percent by the decade’s end. 

The sukuk carries a one-year maturity and can be purchased in increments of SR1,000 ($266), with a cumulative cap of SR200,000 per individual across all program issuances.  

Allocation is scheduled for May 13, with redemption occurring between May 18 and 20. Payments will be disbursed on May 25.   

The Sah sukuk is accessible through digital platforms operated by SNB Capital, Al Rajhi Capital, and AlJazira Capital, as well as Alinma Investment and SAB Invest. 

The May issuance of the Sah savings product follows the fourth round issued in April, which offered a 4.88 percent return under the Ijarah sukuk structure. Available through the digital platforms of approved financial institutions, the bonds featured a one-year savings term with fixed returns payable at maturity. The minimum subscription was SR1,000, with a maximum cumulative limit of SR200,000 per user across all issuances during the program period.

Sah is Saudi Arabia’s first Shariah-compliant savings instrument for individuals. Structured under the Ijarah model — where returns are derived from leasing-based assets — the product is designed to offer a low-risk, fixed-income alternative with no fees and exemption from Zakat.  

Returns are paid upon maturity, with early redemptions allowed during set windows but without profit entitlement. 

NDMC CEO Hani Al-Madini said in March that Sah that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics. These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more.  

In late February, the NDMC confirmed it would continue using the Ijarah format for future issuances to provide accessible, low-risk savings solutions. 


Saudi fintech startup Nqoodlet secures $3m in seed funding

Updated 39 min 4 sec ago
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Saudi fintech startup Nqoodlet secures $3m in seed funding

RIYADH: Saudi fintech firm Nqoodlet has announced the successful closure of a $3 million seed funding round aimed at accelerating its mission to streamline financial operations for small and medium-sized enterprises.

The round was led by Waad Investments, with participation from Omantel, Sanabil 500 Investment, OQAL, Seed Holding, and a group of strategic investors.

Founded by Mohamed Milyani and Yara Ghouth, Nqoodlet offers an integrated digital platform that includes smart corporate cards, real-time expense tracking, and financial automation tools. The startup is focused on transforming financial management for SMEs across Saudi Arabia and the wider Gulf Cooperation Council region.

According to the company, more than 600 SMEs have already adopted the platform, resulting in reported gains such as an 80 percent improvement in process efficiency and average annual cost savings of SR200,000 ($53,330) per business.

“This funding gives us the rocket fuel to scale faster, go deeper with banks, and bring financial clarity to thousands of businesses who deserve better,” said Milyani.

Yaser Al-Ghamdi, chief investment officer at Waad Investment, said the firm backed Nqoodlet because “they are not just building a product — they are building an entirely new future for financial technology.” 

With the new capital, Nqoodlet plans to enhance its technology infrastructure, launch open banking integrations, develop automated tax solutions, and expand strategic partnerships within the regional fintech ecosystem.

“This isn’t just a funding round. It’s a statement: GCC is ready for the next generation of fintech,” said Ghouth.


Saudi insurance firm Al-Etihad retains Moody’s A3 rating with stable outlook 

Updated 53 min 53 sec ago
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Saudi insurance firm Al-Etihad retains Moody’s A3 rating with stable outlook 

RIYADH: Saudi-based Al-Etihad Cooperative Insurance Co. has retained its A3 financial strength rating from Moody’s, reflecting the firm’s strong market position and disciplined underwriting. 

Moody’s cited several key strengths supporting the rating, including Al-Etihad’s solid market position as the Kingdom’s eighth-largest insurer, its conservative investment strategy — where high-risk assets represent just 28.2 percent of equity — and its strong capital adequacy.  

The agency also highlighted the company’s five-year average return on capital of 7.7 percent and a healthy combined ratio of 95.2 percent. 

“However, these strengths are partially offset by Al-Etihad’s concentration to the Saudi insurance market which has an elevated level of competition, as well as Al-Etihad’s concentration to motor and medical insurance, which are the Saudi insurance market’s most competitive lines of business,” Moody’s said. 

This marks the second consecutive A3 rating for Al-Etihad since August, when Moody’s initially assigned the grade, citing similar strengths such as asset quality and profitability. At the time, the agency emphasized the insurer’s ability to navigate competitive pressures while maintaining financial resilience. 

Al-Etihad, a mid-tier property and casualty insurer, offers a range of commercial and personal insurance products. The A3 rating places the company in the upper-medium grade category, indicating low credit risk and a strong capacity to meet its financial obligations. In its August update, Moody’s also affirmed Al-Etihad’s Governance Issuer Profile Score of G-2, reflecting its conservative risk management practices and experienced leadership.  

The insurer’s 2023 financial performance further strengthened its standing, with net profits surging 639 percent year-on-year to SR93.89 million ($25.02 million), driven by increased revenues in the motor insurance segment. 

Looking ahead, Al-Etihad’s ability to sustain profitability while effectively managing market risks will be critical to maintaining its current rating. 

Moody’s review did not incorporate explicit support from Al-Etihad’s largest shareholder, Kuwait’s Al Ahleia Insurance, but acknowledged governance benefits from the partnership. The agency’s following assessment will evaluate any material changes in the company’s credit profile. 

For now, the stable outlook signals confidence in Al-Etihad’s strategic direction, even as it faces sector-specific challenges in Saudi Arabia’s evolving insurance landscape. 

The Kingdom’s insurance sector has experienced robust growth, with revenues surging 16.9 percent year on year in the third quarter of 2024, driven by strong demand for motor, medical, and property insurance.  

According to a KPMG report, this expansion is fueled by Vision 2030-driven regulatory reforms, including mandatory health coverage and stricter auto insurance requirements.  

The sector’s net profit before zakat and tax jumped 25.9 percent to SR3.90 billion, while total assets grew 20 percent to SR84.91 billion, reflecting deepening market maturity.  

The Insurance Authority’s 2023 establishment and adoption of IFRS 17/9 standards have further strengthened governance and transparency. 

With S&P Global projecting 10-15 percent revenue growth in 2025, the sector remains a key pillar of Saudi Arabia’s economic diversification.