PHOTO
Achieving Saudi Arabia’s ambitious Vision 2030 requires consolidation of regulations in order to attract foreign investment, create new jobs and transfer private sector skills to the public sector. This was the consensus during accountancy and finance body ICAEW’s Corporate Finance Faculty roundtable about how Saudi business is evolving to support a thriving economy.
The event was held at the Saudi Standards, Metrology and Quality Organization (SASO) in Riyadh, in partnership with the Saudi Organization for Certified Public Accountants (SOCPA) and in association with award-winning data room provider Drooms.
Panellists included Ahmar Azam, Chief Operating Officer of Leejam; Anand Rohatgi, Chief Operating Officer of Synergy Consulting; Daniel Royle, Corporate Partner at Abuhimed Alsheikh Alhagbani Law Firm; and Imad Matar, ME Deals Partner at PwC. The event was moderated by Alexander Gross, Senior Director at Drooms.
Panellists discussed the various plans set in motion by the Kingdom for its Vision 2030, highlighting the particular industries facing consolidation, the merger and acquisition activities and how they are expected to drive economic growth.
Speakers agreed that the regulatory laws used in the Kingdom are below international standard, especially when compared to more developed markets. They emphasised the importance of revised laws and the adoption of International Financial Reporting Standards (IFRS) to attain a thriving economy.
In line with Vision 2030, the Kingdom is looking to attract foreign investors who could share their expertise in developing and growing local companies. But in order to achieve this, Saudi businesses must make themselves more marketable by showing an equal level of competency, transparency and disclosure. They must have the right team and structure in place, and they should strive to not only compete locally but also globally.
In terms of other reforms that are expected to occur, speakers advised that the Saudi Companies’ Law should be amended to allow a higher ownership percentage for foreign investors, especially in the priority sectors such as the healthcare where clinics are mandated to be 100% Saudi owned.
Panellists also agreed that cost-cutting is essential to improve the overall performance of Saudi businesses. A major strategy to achieve this is by providing economies of scale which can be achieved in the short term through mergers and acquisitions.
Michael Armstrong, FCA and ICAEW Regional Director for the Middle East, Africa and South Asia (MEASA), said: “Vision 2030 sets out a blueprint for the future of Saudi Arabia. Pleasing progress has already been made as a result of sweeping social and economic reforms in the Kingdom. However, there is always room for improvement. By amending laws supporting private companies, we will see an increase in Foreign Direct Investment (FDI) which will lead to greater economic sustainability and long-term benefits for the economy.”
Panellists applauded Saudi Arabia’s ambitious and comprehensive plans to bring fundamental transformation and restructuring to the economy.
The event was attended by more than 60 ICAEW members and senior business representatives from the major global and regional financial organisations.
-Ends-
About ICAEW
- ICAEW is a world leading professional membership organisation that promotes, develops and supports over 150,000 chartered accountants worldwide. We provide qualifications and professional development, share our knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.
As leaders in accountancy, finance and business our members have the knowledge, skills and commitment to maintain the highest professional standards and integrity. Together we contribute to the success of individuals, organisations, communities and economies around the world.
Because of us, people can do business with confidence.
- ICAEW is a founder member of Chartered Accountants Worldwide and the Global Accounting Alliance.
Media enquiries:
Contact Jamie Douglass
ICAEW press office, on
+44 (0)20 7920 8718
email James.Douglass@icaew.com
Mutaz Albadri, Mojo PR, on
+971 (0)50 570 6785
email mutaz@mojo-me.com
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
