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Gulf Ministers of Finance say reforms are reshaping regional economies

“That reform is designed to respond to challenges we face in our economy, not only the challenges we face locally but internationally,” said al-Jadaan.
The minister added that incoming foreign direct investments are a result of the ongoing economic reforms, particularly in the Kingdom of Saudi Arabia.
“Actual FDI is growing 10 percent. Also, local investment is coming in Saudi Arabia, as private investment has grown around 3 percent,” he added.
Al-Jadaan made the comments on a panel alongside his Kuwaiti and Bahraini counterparts, Naif Falah al-Hajraf and Sheikh Salman bin Khalifa Al Khalifa, respectively. The ministers discussed key factors that have made the region attractive for investment, and what was required to move forward.
“I think the reality is that decisions are being made every year to enhance the economic integration,” al-Jadaan added.
Most recently, Saudi Arabia jumped 30 places in the World Bank’s Ease of Doing Business 2020 Index, taking the 62nd position, making the Kingdom the world’s top improver. The results indicate that widespread social and economic reforms carried out by the country are bearing fruit.
However, this improvement comes amid a global economic slowdown. The International Monetary Fund (IMF) in its October 2019 World Economic Outlook cut its global growth forecast to 3 percent for 2019, its lowest level since 2008-2009. Geopolitical and trade tensions have also curbed growth prospects, hitting business confidence, investment activity, and global trade.
“When we talk about the process of reform that has been taking place … it is important to note that is not enough to create a portal, create a one-stop shop in front of a 30 year-old process; it is critical to take every step of the approval process and reengineer it,” said Bahrain’s finance minister Shaikh Salman bin Khalifa Al Khalifa.
During the same panel, Kuwaiti Minister of Finance al-Hajraf pointed out that oil indicators in the region are a “distorting factor”, and that there are other economic indicators to monitor.
“Oil is always a distorting factor in our economy - you can’t look at total revenues, you can’t look at total GDP. You have to look at the policy-driven part of your economy which is the non-oil portion, and that is what you should continue to grow. We have focused all of our policy on it,” he said.
Saudi Arabia’s oil GDP fell 3 percent this year, al-Jadaan said in the panel on Thrusday, while adding that non-oil GDP growth was flat at 2.9 percent.
The pace of reforms
Under the umbrella of Vision 2030, Saudi Arabia has been developing the National Transformation Program (NTP) over the last four years. The NTP is dedicated to engaging stakeholders in identifying challenges and creating solutions for the reforms program’s initiatives.
“I think the country
Reeve, however, said that additional transparency and regulatory reforms are needed in order to encourage more foreign investments in the region overall.
“It is vital that foreign investors feel that they have a level playing field with domestic firms, and that there is a transparent and predictable regulatory environment in place. The lack of such an environment is the main reason why the MENA region has historically found it difficult to attract FDI outside of energy and related sectors,” he added.
Earlier this year, Kuwait announced that its oil sector grew at 1.3 percent for Q1 2019 and non-oil sector expanded at 4.1 percent.
The International Monetary Fund (IMF) announced in March that it expects Bahrain’s economy to grow around 1.8 percent in 2019.
Al-Hajraf stressed that private firms must also play their role in transforming how the region does business.
“The time has come for the government to zoom from the operation and leave the room for the private sectors to lead the economy and this is what we are emphasizing on,” he said.
Al-Hajraf later added that the economic agenda of the Gulf Cooperation Council (GCC) should not be impacted by political differences.
“What has been achieved under the GCC umbrella is too good to let go,” he said, adding: “We have our differences, we have to address the differences and work it out in a very functional way.”
More reforms needed
The main topics discussed at FII in Riyadh this year were climate change, technology, entertainment, and emerging economies. Since the launch of Vision 2030 in 2016, Saudi Arabia’s social reforms have opened up untapped sectors for the Kingdom, such as entertainment and tourism.
However, analysts told Al Arabiya English that the policymakers in Saudi Arabia and the region should continue to push ahead with additional economic diversification reforms in order to attract investments – particularly to support small and medium enterprises (SMEs).
“The need to invest and set up a functional SME sector is still not fully understood. In the global economy, SMEs are main driver for a sustainable economy and provider of jobs,” said Cyril Widdershoven, MENA analyst and director of Netherlands-based consultancy Verocy.
“Currently, the main risk is that there is still an approach to address and invest only in flashy high-profile projects or high-tech,” Widdershoven, who was also a participant at FII 2019, told Al Arabiya English.
He added that there needs to be an emphasis on sectors other than technology or entertainment in Saudi Arabia and the Arabian Gulf, such as ports, airports, mining, and education.
The ministers were speaking on the third and final day of FII 2019. Previous speakers included US Energy Secretary Rick Perry, Brazilian President Jair Bolsonaro, and the head of Saudi Arabia’s Public Investment Fund Yassir al-Rumayyan.
The three-day conference discussed themes ranging from sustainibility, to sport, African investment, and the Aramco initial public offering (IPO). Sources at the conference told Al Arabiya that the much-anticipated Saudi Aramco IPO will be listed on the Tadawul on December 11, 2019.
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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