Market Commentaries

The housing challenge has assumed a new sense of urgency in the wake of the Arab spring. While government has risen to the challenge and allocated billions of Riyals, this article highlights the need for a more holistic approach and a concerted effort on part of all stakeholders.

Saudi Housing Challenges - The Need for a Holistic Approach

The housing challenge has assumed a new sense of urgency in the wake of the Arab spring. While government has risen to the challenge and allocated billions of Riyals, this article highlights the need for a more holistic approach and a concerted effort on part of all stakeholders. There is need for both supply and demand side intervention, public private partnership and for the government to create an enabling environment for players to leverage their core competencies. Equally, the Kingdom should not shy away from bringing in foreign paradigms and expertise to supplement local skills and talent.

Importance of an SME Authority of Saudi Arabia

Small and medium enterprises (SMEs) are the key to unlocking the vast potential of the Saudi Arabian economy. SMEs can provide valuable employment opportunities to a growing young population improve productivity and help diversify the economy. SMEs have a strong footing within the Kingdom in that they currently make up 90% of all businesses, however, their contribution to GDP remains low. Considering the vast number of competing SME programs and initiatives throughout the Kingdom, the need for a new SME support organization in Saudi Arabia may seem redundant. The reality is that the only effective way to expand the true economic potential of SMEs in Saudi Arabia is to launch a national SME Authority.

The Mortgage Law: What comes Next?

Multiple stakeholders anxiously await the passage of the Saudi Mortgage Law. Saudi Arabia has chosen the perfect time to start on this path, since it has the benefit of hindsight to avoid mistakes made by other economies. While the Mortgage Law will create much needed order in a yet unregulated market, stakeholders must understand that the Mortgage Law and its supporting regulations must be effectively administered. This article discusses the importance of effective communication and collaboration among mortgage industry stakeholders to develop policies and procedures that compliment the objectives of the Mortgage Law and promote transparency throughout the industry.

Significance of SME Development in the OIC

Small and Medium Enterprises (“SMEs”) play a critical role in growing, diversifying and strengthening a country’s economic base. They create employment, enhance competitiveness, and contribute positively to socioeconomic indicators such as GDP growth and the number of middle-income households in an economy. This comment piece discusses the current context for SMEs in key OIC economies as well as the critical issues they face and presents examples of success stories from global examples of SME sector development.