Entrepreneurship in the Kingdom of Saudi Arabia

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إنشاء سوق أسهم «موازية» تستهدف الشركات الصغيرة والمتوسطة مطلع 2017

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“الاقتصادية” من الرياض

تعتزم شركة السوق المالية السعودية “تداول”، إنشاء سوق أسهم تستهدف شريحة الشركات الصغيرة والمتوسطة وذلك مطلع عام 2017.

وقالت في بيان نشر أمس إن هذه المبادرة تأتي نظراً لأهمية دور هذه الشريحة في دعم الاقتصاد الوطني ودفع عجلة التنمية، ولما تواجهه من تحديات تحد من قدرتها على التنافسية والحفاظ على النمو المستدام. وقالت إن الإدراج في هذه السوق سيوفر فوائد عدة للشركات، حيث إنها تعتبر وسيلة لتمويل مشاريعها، وإبراز أعمالها، إضافة إلى أنه يعد دافعاً لها لتحسين مستويات الحوكمة والإفصاح؛ مما يزيد فرص التوسع والنمو وتطور أعمالها. وأضافت “تداول” أنها حرصت على أن يكون لهذه السوق متطلبات ملائمة للشركات والمستثمرين لتشمل الفائدة أكبر شريحة من الشركات وتوفير بيئة استثمارية مناسبة. وأشارت إلى أنه سيسبق إطلاق هذه السوق حملة توعوية تستهدف الشركات الصغيرة والمتوسطة لتعريفهم بأهمية الإدراج، وأثر ذلك على استمراريتهم وتطوير أعمالهم، وتعريف المستثمرين بفرص الاستثمار المتاحة في هذه السوق.

من جهة أخرى، حققت شركة السوق المالية السعودي “تداول”، أرباحا صافية قدرها 107 ملايين ريال خلال عام 2015، مقارنة بنحو 265 مليون ريال تم تحقيقها خلال الفترة من عام 2014، وذلك بانخفاض قدره 59 في المائة. وشهدت الشركة انخفاضاً في الإيرادات التشغيلية بـ 17 في المائة، حيث بلغت 403 ملايين ريال مقارنة بـ 487 مليون ريال لعام 2014، وذلك بسبب انخفاض متوسط قيم التداول اليومية لعام 2015 بـ 22 في المائة عن عام 2014، حيث بلغت 6.7 مليار ريال مقارنة بـ 8.6 مليار ريال لعام 2014، مما أدى إلى انخفاض ملحوظ في الدخل من الأعمال الرئيسة بلغ 82 في المائة من 186 مليون ريال لعام 2014 إلى 33 مليون ريال لعام 2015.

Source: http://www.aleqt.com/2016/04/19/article_1048355.html

Six Saudi teams in the MIT competition finals

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Winners of last year's MIT Enterprise Forum Arab Startup Competition. — Courtesy photo
Winners of last year’s MIT Enterprise Forum Arab Startup Competition. — Courtesy photo

JEDDAH — Six teams from the Kingdom have qualified for the finals of the MIT Enterprise Forum Arab Startup Competition 2016. A total of 76 competing teams from 15 Arab countries reached the semi final stage. The competition’s finalists and ultimate winners will be revealed at a gala event at King Abdullah Economic City on Thursday.

The competition is organized in partnership with Community Jameel, the social enterprise arm of Abdul Latif Jameel, and Zain Group, a leading mobile telecom innovator across the Middle East and Africa. This year’s final ceremony and conference is supported by government partner the Economic Cities Authority of KSA and hosting partner the King Abdullah Economic City as well as global technology provider Huawei.

The Saudi Arabian semifinalists span two of the competition’s three tracks — Startup, Ideas and Social Entrepreneurship with total prize money on offer in excess of $150,000. Each of the three tracks will award the first three ranked winners with cash prizes in addition to many other benefits including top tier training, mentorship, coaching, media exposure and great networking opportunities.

Both Community Jameel and Zain Saudi Arabia possess a strong affinity for youth development, entrepreneurship, and innovation. As such their support for the competition is something both entities believe aligns perfectly with their respective core values.

Fady Jameel, president of Community Jameel International, commented: “At Community Jameel, we are committed to enabling the next generation of young entrepreneurs and we will remain focused on creating and enabling an environment in which young entrepreneurs can achieve their aspirations. We are proud of these six Saudi-based winners who were selected from a wealth of talents and promising entrepreneurs. It is with great pleasure that Community Jameel pledges its continuous support to the entrepreneurs in the MENA region.”

Hassan Kabbani, Zain Saudi Arabia CEO, said: “We at Zain are proud to foster the growth of this competition as we recognize that much of the region’s future development will be driven by innovative youth in technology, whose ideas and their constructive and sustainable projects have been and will continue to be the success story of modern society.”

The launch of the MITEF Saudi Chapter last year provided an extra opportunity for the Saudi-based entrepreneurs to apply for the Saudi Startup Competition. The six winners from the Saudi Arabia Competition vying to make it to the final, and be crowned winners in the Startup track include Artistia, a project to have a centralized destination that features the work of artists and designers where they can have the same features of a social media interface and e-commerce making it more interactive for both the buyers and sellers.

B8ak is a smartphone app-based home maintenance delivery company in Saudi Arabia, allowing users to order quality home maintenance services conveniently with only few clicks in a mobile app. Rola Badkook Establishment believes playfulness is our way back to ourselves, our beloved ones, and our education and passion thus focus on offering a unique playful experience through their products.

The three idea tracks applicants include Every Drop Counts (EDC), a real-time system which consists of a sensor device and an application to monitor and control the water usage within a single water consuming source. Kool snacks provides healthy, natural, wholesome, and easy to carry snacks being designed with no added sugar.

Source: http://saudigazette.com.sa/saudi-arabia/six-saudi-teams-mit-competition-finals/

Saudi Aramco innovating continuously in pipeline technologies

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 Saudi Aramco is implementing a diverse portfolio of innovative and pioneering technologies to transport hydrocarbons, water and other fluids, safely and reliably while at the same time maintaining its leadership in environmental stewardship, says Ahmad O Al Khowaiter, chief technology officer, Saudi Aramco. Read more….

Watch “أبدأ مشروعك بأقل التكاليف” on YouTube

Amazing book, every young leader and entrepreneur should have it! Organisational Anatomy: A Manager’s Guide to a Healthy Organisation

 

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Dr. Oleg Konovalov

I started reading a book titled “Organisational Anatomy: A Manager’s Guide to a Healthy Organisation” written by Dr. Oleg Konovalov. In my opinion, this book should be owned by every young leader and entrepreneur. While business schools focus on the ‘HOW’ in management and business, this book tells the recipe of the deep-down ‘WHY’.

For Entrepreneurs in Saudi Arabia, the book will be available in Jarir Stores soon. You may, too, get it via Amazon https://www.amazon.ca/Organisational-Anatomy-Managers-Healthy-Organisation/dp/1443888850

Regards,

Jamal

This is a test from Hootsuite

This is a test from Hootsuite

SAGIA simplifies essentials for foreign entrepreneurs

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Mar 30, 2016

JEDDAH — The Saudi Arabian General Authority (SAGIA) has introduced early 2016 several steps aimed to simplify licensing procedures for foreign companies planning to lay down roots in the Kingdom of Saudi Arabia.  Dr. Ayedh Al Otaibi, Director of Investment Policy and Regulations, said the steps included reducing the number of documents submitted by applicants and thus making a major reduction in time to less than 5 days; options for contracting business; ability to extend licenses up to 15 years; and improvements to entrepreneur visas.

SAGIA revealed a number of reforms to make investing in the Kingdom easier, said Dr. Ayedh.  Documentation requirements were significantly reduced to 3 simple documents; one is board resolution declaring intent of investment in Saudi Arabia, another outlining the investment plan including its economic impact, and a third showing the financial ability of the investor to carry out operations.

In addition, Dr. Ayedh added, all foreign investors now enjoy a fast track service to receive investment licenses within a maximum of 5 days; and investors would now have the option to extend their licenses for up to a 15-year period.

The short cyclical nature of the construction sector is viewed by many construction companies as challenging especially in a foreign country. To help reduce this risk we are adopting a series of measures and providing options for foreign investors in this sector to allow for a more sustainable investment.  This includes having the option of a 3-year license to explore the market and gradually work towards building the organization capabilities. After this period, the investor has the right to  procure a renewable license after establishing a sustainable entity with a minimum number of personnel, fixed assets and equipment. The investor also have the option of applying for a renewable permanent license, provided the applicant submits an undertaking to establish an entity with minimum level of assets and personnel within one year from the date of the license.

Another option  involves a temporary license for the implementation of specific contracts for specific duration with government or quasi-government agencies where the nature of these projects are characterized as non-frequent. The fourth option is that of granting a temporary certificate, in lieu of  a classification certificate, for the implementation of one single government project provided the applicant conforms to the prescribed regulations and standards.

Dr. Ayedh also noted that “we have worked with the Ministry of Labor and other government agencies to now refine and align “investor” and “general manager” visa requirements”

He added, SAGIA will issue a support letter to issue a visa for “Investor” and /or “General Manager”, in line with foreign investment and international agreements. This relates to the visa and does not affect the licensing or Investor ownership as the regulations deal only with investor/general manager visas.

More particularly, these regulatory measures are related to applying for investors or general manager visa (limited to sole proprietorship, a limited liability company owned wholly or partly by individuals, and the branch of a limited liability foreign company, which is owned in part or whole by individuals), will get support letter for entrepreneurs ”
investor” visa must conform  to one of the following requirements:

1. The activities of the entity need to fall under “innovative activities” with a valid patent used as part of the enterprise products.

2. The entity needs to be an exporter of its products with the condition that the technical specifications of the export products and the method of production must conform to the approved Saudi, GCC, or international specifications.

3. The entity must have a minimum of 50 workers and adhere to Saudi Arabia’s WTO commitment to employ a maximum of 25% foreign labor as part of the total workers employed in foreign or joint-venture companies and of these, 10% are managers and professionals and 15% technicians and workers, or vice versa.

4.  The entity’s paid-in capital must not be less than SR37.5 million.

The application of these requirements include existing and future licenses of the entities referred to above. Existing licenses will be granted a lead time of twenty-four months or the date before the second renewal of the license, whichever comes first, to adapt these conditions.  Owners will also have the option to obtain business visit visas in accordance with regulations and international obligations of the Kingdom of Saudi Arabia.

Source: http://saudigazette.com.sa/business/sagia-simplifies-essentials-foreign-entrepreneurs/