KSA NCP moves towards privatisation of Hajj and umrah sector

The National Center for Privatization & PPP (NCP), a newly-formed agency created to empower Saudi Arabia's private sector, alongside the Supervisory Committees (SCs) established to manage each privatisation sector, has set out the blueprint to ensure the efficient and strategic transfer of the kingdom's government assets to the private sector.

The NCP, established through the Council of Ministers Resolution on April 3, 2017, and the SCs are the first entities of their kind in the MENA region. They have been established to meet the core objectives of the privatisation effort: improving the efficiency and competitiveness of the national economy, thereby boosting the quality of life for the Saudi people through stimulation of the private sector, improving the overall business environment, increasing job opportunities for Saudi nationals, reinvigorating the kingdom's rich mineral resources sector, developing renewable energy capacity, investing in workforce and education development and diversifying the economy.

The KSA Council of Ministers announced the establishment of the SCs on August 1, and these were given a definitive mandate to function as executive facilitators for multiple sectors which are to be privatised over the next 10 years. NCP will serve as a permanent member of all SCs, providing strategic guidance and support as the committees move to enhance KSA's economy by recruiting private sector participation through asset privatisation and the formation of new public-private partnerships.

The role of each committee is to assess the technical, financial, legal and regulatory landscape and to establish a best practice blueprint for the privatisation of the targeted entities. The Ministry of Finance, a permanent member in all the SCs, will also play a crucial role in the privatisation process.

The sectors included in Vision 2030 under the Privatization Program are: environment, water and agriculture; transport; energy, industry and mineral resources; labour and social development; housing; education; health; municipalities, telecommunications and IT and the Hajj and umrah sectors.

NCP will formulate regulations, create privatisation frameworks and prepare robust processes that will serve as a blueprint for agencies and entities to follow that will ensure the efficient sale of Saudi assets and to drive the privatisation process forward. The first step in this process is to establish a world-class centre of excellence to facilitate and regulate the sale of state assets and entities. "NCP has adopted a wide-ranging governance policy that will enable government agencies and hold each accountable as we move forward with stimulating private investment and privatisation," said Turki A. Al Hokail, CEO of the NCP.

"We will facilitate the smooth transfer of assets by publishing a blueprint that will deepen communication channels between government agencies, citizens and the private sector locally, regionally and internationally and serve to guide investors and participating agencies and entities through the privatisation process.

"NCP was established with the purpose of setting policies, strategies, programmes, bylaws, plans and tools to achieve the privatisation projects objectives, thus suggesting the sectors and activities that may be privatised. The centre will also set necessary standards and frameworks for sectors targeted for privatisation, set principles which help the management of privatisation-related projects, develop requirements to establish entities where the private sector – from inside and outside the kingdom – may participate with government entities in the launched privatisation projects.

"NCP will work with the sectors targeted for privatisation to ensure their technical and financial readiness. The Center will work to assess the readiness of the macro economy of the privatisation programs and contribute to managing related risks. It will work with its counterparts to identify key performance indicators related to privatisation. In addition, NCP will be contributing to the training and qualification of human capital in the field of privatisation to guarantee leveraging their abilities and expertise to achieve development objectives.

"Effective governance means integrating a continuous evolution of improvement to keep pace with the rising accountability and transparency expected of government. NCP will serve as an agile, performance-oriented public organisation that will boost performance and increase investment opportunity in the kingdom."

It is anticipated that the privatisation process will increase the private sector's contribution to GDP from 40% to 65%.

New services in KSA to streamline government procedures for citizens, businesses

Source: MCI. The new Eltzam service aims to speed up bidding procedures, financial authorisations and payment, also raise transparency.

In cooperation with the KSA Ministry of Justice, the Ministry of Commerce and Investment (MCI) has launched an e-service for the establishment of corporate contracts, eliminating the need for physical submissions at either ministry and allowing submissions to take place round the clock. The move is part of Miras initiative, launched in May, to facilitate business in KSA.

Applicants will be able to issue corporate contracts with the necessary authentication, issue the Commercial Registration documents, and register at the Ministry of Labor,  Zakat, Social Insurance and Chamber of Commerce electronically.

The two Ministries have completed training and qualifying a group of authenticators to benefit from this service. The initiative is part of the National Transformation Program.

Another new service was launched as part of the National Transformation Program 2020 in late May. The Eltzam portal aims to support government procedures related to the private sector, consolidating all related services, speeding up government procedures, eliminating paperwork and ensuring transparency and credibility in the data provided. Commercial institutions can also verify the extent of their compliance with government requirements electronically. 

HE Engineer Majid Al Bawardi, Ministry of Commerce and Investment (MCI) Deputy Minister, said that Eltzam e-service will be used by government agencies to ensure the commitment of the commercial establishments with the requirements of each service provided. This e-service can be used as well by the commercial establishments to verify their regulatory status easily and with full transparency before applying for government services. The public can check the validity of their Commercial Registration, Zakat and Income Certificate, Saudization Certificate, and the validity of Chamber of Commerce membership among other services.

Undersecretary of the Ministry of Finance for Technical and Development Affairs Ahmed Al-Suwayan said that the pilot of this e-service had been successfully launched at the Ministry of Finance, Zakat and Income Authority and Customs Department, and had sped up the issuance of authorisations, payment of bills and receivables without paperwork. 

DED and Dubai Islamic Bank launch shari'ah-compliant credit card

Source: DED.

 

The Department of Economic Development (DED) in Dubai and Dubai Islamic Bank (DIB), the largest Islamic bank in the UAE, have launched of the Consumer Card in the UAE. DIB boasts today one of the largest retail bases in the UAE with over 1.5 million customers and 90 branches across the country.

The co-branded credit card is dedicated to protecting the rights of consumers and providing them with savings on their daily purchases. The card is an addition to the partnership initiatives being launched by DED along with the private sector and to the ongoing efforts to enhance the shopping experience in Dubai, and across the UAE.

Developed and designed in line with the spending habits and distinct needs of consumers in the UAE, the shari'ah-compliant card is issued in partnership with Visa and carries no hidden charges. It has two variants, the Rewards Consumer Card and the Platinum Consumer Card.

While enabling customers to make savings on everyday spends, the Consumer Card also carries a host of discounts at over 450 outlets across the country. It offers up to 4% cashback across a number of outlets including supermarket or hypermarket, for all automobile servicing, on Etisalat and Du bills, Salik and Nol recharges, fuel purchases, utility bills and cinema tickets. Card users will be able to receive up to AED1,000 cashback per month on their spends across the UAE.

The card was launched today at the Mall of the Emirates in the presence of His Excellency Sami Al Qamzi, Director General of DED, Dr. Adnan Chilwan, Group Chief Executive Officer at Dubai Islamic Bank, and in addition to senior managers from the organisations.

Mohammed Ali Rashed Lootah, Executive Director of the Commercial Compliance & Consumer Protection (CCCP) sector in DED, said the card highlights the effectiveness of public-private partnerships in bringing added value to businesses and consumers. "The Consumer Card is part of the initiatives of the Department of Economic Development to promote trust and partnership between retailers and consumers. Dubai is a global shopping and entertainment destination and we focus on making the shopping experience in the emirate as convenient and rewarding as possible," he said.

Sanjay Malhotra, Chief of Consumer Banking, at DIB said: "Domestic spending remains today the backbone of the UAE economy and we are keen to invest our expertise and resources in developing payment solutions that are favourable to spurring further growth. As one of the most innovative banks in the market today, we are pleased to offer our client base attractive payment solutions and savings on their daily purchases. Moving forward, we will continue to leverage our partnerships to present a unique banking experience while adhering to the highest standards of service excellence.
"While the market already offers benefits on credit cards, we have focused on areas where customers spend their money regularly thus maximising their gain. With this in mind, we have developed the Consumer Card as a low-cost, high-value proposition in order to appeal to a larger number of customers and allow them to enjoy unique benefits."

Ihab Ayoub, General Manager MENA at Visa, said: "The Consumer Card – a major step in this direction – will help in spreading further awareness about the benefits of electronic payments and the related cardholder rewards through a wide network of customers. Providing consumers with a safe and convenient way to pay is one of Visa's main priorities, and our participation in this initiative is aligned with our ongoing efforts to promote financial literacy on the ways to save, spend and budget responsibly.

"We are confident that through a partnership of public and private sectors, the "Consumer Card" initiative will support the UAE's efforts to be a leader in developing innovative payment technologies, and drive its transformation into a cashless society."

Ahmed Al Zaabi, Senior Manager - Consumer Awareness, at DED said: "The Commercial Compliance & Consumer Protection sector constantly seeks to strengthen the relationship between the merchant and the consumer, and improve awareness among consumers on their rights and responsibilities. We also focus on regulating the market and launch programmes that protect businesses. The Consumer Card is part of our efforts to raise the quality of services provided to customers and enhance their satisfaction and happiness. Our partnership with Dubai Islamic Bank and the advantages it brings to consumers and traders will strengthen economic activity in the UAE."

Interested?

Ask the DIB Call Centre about the Consumer Card at +971 4609 2222.

QDB, ICD to collaborate on boosting SME sector

Source: ICD. The MoU was signed by (from left) Khaled Mohammed Al-Aboodi, the Chief Executive Officer and General Manager of the ICD, and Abdulaziz Nasser Al Khalifa, the Chief Executive Officer of QDB.

Qatar Development Bank (QDB) has signed a memorandum of understanding (MoU) with The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group. The new agreement is a joint strategic collaboration in examining innovative means and opportunities to support small- and medium-sized enterprises (SMEs) in Qatar.

The MoU commits the two institutions to share knowledge and expertise relating to the SME sector in Qatar. A workgroup composed of key stakeholders and experts from each party will be formed in order to work on the feasibility of co-developing an investment and financing vehicle that will focus on supporting and developing SMEs and local businesses. The preliminary work to be undertaken by the joint parties will cover, although be not limited to, the following: concept design, market analysis, structure and governance, as well as potential positioning and product development. The MoU will enhance the ability of the organisations to achieve their respective objectives and mandates.

Abdulaziz Bin Nasser Al-Khalifa, CEO of QDB said: "Qatar Development Bank aims to empower local SMEs and entrepreneurs to help achieve Qatar’s National Vision 2030. Through this memorandum QDB will conduct a compatibility study for ICD programmes, and find the best applicable ways to utilise the findings in supporting the local SMEs, especially in providing funds to this important and vital sector, in order to develop the skills of the Qatari entrepreneurs and empower them to grow and compete successfully in the regional markets, in accordance with international standards."

Khaled Al-Aboodi, the CEO of ICD, said: “ICD and QDB share a mission of supporting the private sector, in particular SMEs. We look forward to enhancing our cooperation through this new and innovative initiative as there are great opportunities for local businesses to benefit."

ICD and OJSC Agroinvestbank sign MoU for SME financing

Source: ICD. ICD signs MoU with OJSC Agroinvestbank for financing facility.

The Islamic Corporation for the Development of the Private Sector (ICD) and OJSC Agroinvestbank of the Republic of Tajikistan have signed a memorandum of understanding for cooperation to consider the extension of a financing facility to the bank as part of the allocation of US$25 million for Tajikistan.

The line of financing will be extended by OJSC Agroinvestbank to the SME sector for industrial, communication, technology, health, construction and agricultural projects. 

Khaled Al Aboodi, the CEO and General Manager of ICD, commented: “The small and medium sized enterprises (SMEs) have a crucial role to play in a country’s growth and development, and ICD has big plans for them. This is an important sector in all the member countries, including the higher income ones. ICD is now focusing on this sector by extending lines of finance to local banks in addition to the establishment of ASR Leasing Company in Tajikistan - a company specialised to provide shari'ah compliant leasing products to the SME sector.”

ICD previously extended a total of US$11.5 million in financing for the development of SMEs in Tajikistan which demonstrates ICD’s commitment to develop the private sector in its member countries.

The Chairman of OJSC Agroinvestbank said, "The close and mutual fruitful cooperation between Agroinvestbank and ICD positively affects the development of the economy of the Republic of Tajikistan through financing SMEs in key sectors such as agricultural, industry, construction and etc. The Islamic banking products have a huge potential to meet the increasing demand for long term financing of SME in Tajikistan. In this regard, the signing of present MoU is a step towards strengthening and deepening our further collaboration in context of development of the economy of the Republic of Tajikistan and enabling SMEs access to finance.”

Eid Al Adha holidays in Oman, UAE announced

The Diwan of the Royal Court in Oman has announced the Eid Al Adha holidays for 2014, the Oman News Agency has reported.

Sayyid Khalid bin Hilal al-Busaidi, Minister of the Diwan of Royal Court, Chairman of the Civil Service Council has declared that the Eid Al Adha holiday for the year 1435 for employees at the ministries, public authorities and other departments of the state's administrative apparatus will start from Friday 9 Dhul Hijjah, corresponding to October 3, till Thursday 15 Dhul Hijjah, corresponding to October 9, 2014. Work will resume on Sunday October 12.

Sheikh Abdullah bin Nasser al-Bakri, Minister of Manpower, issued a ministerial decision stating that Eid Al Adha holiday for the private sector will be for a corresponding period, from 9 to 15 Dhul Hijjah.

Eid al Adha holidays for the UAE were announced the same day. The Emirates News Agency (WAM) said that Hussein Ibrahim Al Hammadi, Minister of Education and Chairman of the Federal Authority for Government Human Resources, had issued a circular to the effect that the Eid Al Adha holiday for Federal Ministries and Departments is to start on October 3, and end on Monday, October 6. Normal Federal Government business hours will resume on October 7.

WAM further reported that the private sector in institutions and private sector companies in the country will receive a paid Eid Al Adha holiday from October 3 to 5. The news came in a circular issued by Saqr bin Ghobash, Minister of Labour, in accordance with Federal Law, which states that the Eid Al Adha holiday and Arafa Day will be three days.

Update: On September 29, the Central Bank of Bahrain announced that Eid Al Adha holidays run from October 4 to 7, with work resuming on October 8. The Banking Operations Directorates will however be open from October 7.