Riyadh, November 2011: Against the backdrop of the Kingdom’s bright economic outlook and its implications for the growing Saudi real estate market, the Riyadh International Urban Development and Real Estate Investment Event - Cityscape Riyadh 2011 is expected to set a new benchmark among Riyadh’s real estate and business community, and offers investors a platform to seize new opportunities.

This year’s event is under the patronage of HRH Prince Mohammed Bin Salman Bin Abdulaziz, Special Advisor to the Emir of Riyadh and officially supported by Arriyadh Development Authority and Riyadh Municipality. Organized for the second year running by the National Exhibitions Company and IIR Middle East, Riyadh International Urban Development & Real Estate Investment Event – Cityscape Riyadh 2011 will be held at the Riyadh Exhibition Center on King Fahad Road (opposite to Saudi Arabian Airlines office) from 11-13 December in the Kingdom’s capital. 

The move to the Exhibition Center is essential due to increasing demand and a requirement from exhibitors for a bigger amount of space to showcase their projects and services. The event will offer the Saudi Arabian real estate investment and development community an unprecedented Business-to-Business platform to engage, network and identify business opportunities in the Middle East’s largest economy.

“Riyadh International Urban Development and Real Estate Investment Event - Cityscape Riyadh is happening at the right time and in the right place. With more than 10,000 expected visitors, Cityscape Riyadh attracts a steadily increasing number of real estate professionals, investors and companies,” said Deep Marwaha, Group Director of IIR Middle East. 

Commenting on the potential of Riyadh’s real estate market Mr. Yasser Abu Atiq, CEO of Dar Al Tamleek said: “Riyadh is one of the most favorable markets within the Kingdom for the real estate industry.  This is due to several factors but the most important is the land mass surrounding the city that is available for development projects. The expansion of both high-end and affordable housing projects are not bound by mountains, sea or other geographic factors that limit outright housing growth in other cities. Unlike the other major markets, Riyadh is also the center of government and therefore a world showcase for demonstrating Saudi progress in creating opportunities for its citizens and diversifying into non-oil sectors of economic growth.”

In March, the government ordered 500,000 housing units to be built within five years and set aside $66 billion for the project. Affordable housing is clearly on the government’s agenda and with the positive forecast for next year’s budget the real estate market is poised for further growth. With Saudi Arabia on course to earn nearly $300 billion in oil revenue this year, $50 billion more than planned, and $550 billion in foreign reserves, the Kingdom is expected to exceed the amount projected in the national budget for 2011, as former Saudi intelligence chief Prince Turki al-Faisal and Dr. Ibrahim Al-Assaf, Minister Finance of Saudi Arabia confirmed.

“This is good news for the Kingdom’s economy and will significantly benefit the real estate sector,” said Hussain Al Harthi, Managing Director, National Exhibition Company. “With the Kingdom set for further growth it comes as no surprise that the region’s fastest growing real estate event - Cityscape Riyadh - has moved to larger premises at the Riyadh Exhibition Center in order to accommodate the high demand for an internationally recognized platform for investment opportunities.”

Speaking as an exhibitor and sponsor, Dr. Bassam Boodai, CEO of Jenan Real Estate, said:  “Saudi Arabia’s real estate sector is more diversified. Many new players have entered the market as there are major projects in the residential and real estate development sector. In addition, there are vast opportunities in the tourism sector with the need for more hotels. The government’s expected regulations and the newly formed Ministry of Housing will motivate the market further. Cityscape is the leading real estate event and attracts all the key players in the real estate sector such as investors, developers and government officials. It helps companies like ours to expose ourselves to those entities. We will be present at Riyadh International Urban Development and Real Estate Investment Event - Cityscape Riyadh with four projects: Jenan Gardens-Khobar, Dana Bay, Jenan City and Al Nawras Village.”

The new venue, the Riyadh Exhibition Center, provides an expansive 9,000 square meters of display space for exhibitors and sponsors such as Arriyadh Development Authority andRiyadh Municipality (Official Supporters), Ewaan Global Residential Company (Founding Sponsor), Affordable House Company (Principal Sponsor), Jenan Real Estate (Premier Sponsor), Dar Al Tamleek and Daem Real Estate (Silver Sponsors), as well as WorkingBuildings Companies (Conference Sustainability Sponsor).

Riyadh International Urban Development and Real Estate Investment Event - Cityscape Riyadh offers a unique event portfolio of exhibition, conferences workshops and investor round tables. For the first time Cityscape Riyadh will also host the World Architecture Congress in Saudi Arabia which is being supported by The Royal Institute of British Architects and AIA Middle East (AIA ME), a Chapter of the American Institute of Architects, the congress is an exclusive gathering for the entire architectural community in the Kingdom, providing an unsurpassed opportunity for industry leaders to meet and discuss the latest trend in architecture and learn about the latest government projects. Event details are available at www.cityscaperiyadh.com.

Jeddah,:  In a unique and innovative setting avid art collector and connoisseur Basma AlSulaiman hosted a presentation unveiling the first of its kind virtual museum BASMOCA (Basma AlSulaiman Museum of Contemporary Art). The event hosted at the Jeddah Chamber of Commerce and Industry in cooperation with the Jeddah Young Business Women’s Committee was attended by a number of business personalities and art enthusiasts. 

“Saudi Art Establishes its Global Presence” was the theme of the event that kicked off with a presentation about the virtual museum BASMOCA and a glimpse into its realm followed by the presentation of British art expert Mr. Philip Hoffman the Chief Executive of The Fine Art Fund Group.  During his speech to the group Mr. Hoffman shed light on art history and investment opportunities in the arts arena at the same time featuring the distinctiveness of BASMOCA and the ability to log in from anywhere around the world to visit the museum.

Basma AlSulaiman was able to bring together the passion for arts and open doors for the benefit of the public to appreciate the intricate pieces that have been part of her collection by taking on an innovative business route in opening a museum bypassing limitations and challenges through the usage of Virtual Worlds Technology.  Such a process allows people to interact in a 3D cyberspace that uses the metaphor of the real world but without its physical limitations using the internet. The museum aims to promote contemporary art and consists of the special art collection owned by Mrs. AlSulaiman, including unique artistic works that combine Saudi and international art pieces in one place online. 

“In light of the technical evolution we experience in our world today, and the need to bridge distances between communities and people around the globe, I made sure to extend a new connection between the eastern and western cultures in a scene that blends tradition with modernity; providing an opportunity for Saudi art to establish its presence globally,”  stated Basma AlSulaiman.  “By employing the latest 3D designing techniques through internet applications we are able to introduce a dedicated gateway open for contemporary art,” she continued. 

Basma AlSulaiman started collecting art since the eighties from all over the world; accumulating paintings and sculptures from China to USA that today are the pieces on display at BASMOCA.  Enthusiasm for art collection isn’t her only asset today Basma AlSulaiman has helped in the sponsorship of young talents in Saudi Arabia helping them develop into leading artists through sponsorship and support.

The museum has become a leading example in utilizing technology to exhibit a matchless artistic collection delivering to contemporary art enthusiasts across the globe. 

Visiting Basmoca museum differs from visiting any regular one with the exclusivity on offer per visitor starting with the creation of an avatar of choice to tour the exhibition. The museum also offers its visitors the ability to interact with each other and exchange ideas and thoughts about the exhibits easily whenever and wherever they are using the web.

Keen on cultivating a sector for young art talents in the museum, whether they are from Saudi Arabia or any part of the Arab world.  “I feel that I am representing my country culturally and artistically through this museum that expresses a modern  vision and I wish that my initiative will be first and foremost for the sake of my beloved Saudi Arabia,” she ended.

To visit the museum please go to www.basmoca.com

Riyadh, : NCB Capital, Saudi Arabia’s leading wealth manager, reported that the Saudi banking sector remains one of the strongest in the region with a positive outlook. The combination of good net interest margins, growing fee income, reduced cost of risk and cost efficiency positions the Saudi banking sector strongly among its peers. An underleveraged equity base and ROE expansion supported by increasing government expenditure supports growth.

“Efficient asset utilization supports the strength of Saudi Banks,” said Farouk Miah, Acting Head of Equity Research commenting on the new NCB Capital Report. “Although the yield on assets has been declining due to a focus on loan volume growth, Saudi banks’ NIMs of 3.0% in 1H11 were ahead of the regional peers’ average of 2.8%. Saudi banks were able to generate good NIMs given their large pool of customer deposits, which enables them to keep the cost of funds low and maintain current net interest income levels.”

According to a ROE decomposition analysis, Saudi banks’ net interest income to asset ratio came in at 2.8% vs. the GCC peers’ average of 2.6% in 1H11.

The report highlighted that Saudi banks enjoy the highest fee income to assets ratio. The Saudi banking sector reported a 16.6% YoY growth in fee income during 1H11 owing to increased trading turnover as well as improved banking activities. “This led to an increase in the fee income to asset ratio to 0.9%, better than the regional peer average of 0.7% as well as US banks’ average of 0.3% for 1H11,” added Mr. Miah.

In addition, improved asset quality of Saudi banks has reduced provisions. According to NCB Capital, the Saudi banking sector’s asset quality improved in 1H11 and remained one of the strongest amongst peers with all the banks’ Non Performing Loans (NPL) coverage ratio exceeding 100%. “The combination of a stringent credit policy and an improvement in asset quality led to a decline in the provision expenses to average asset ratio to 0.3% in 1H11, similar to Qatar but lower than the 1.1% in the UAE and 1.2% in Kuwait,” explained Mr. Miah.

The report highlighted that the Saudi banking sector’s operating efficiency falls broadly in-line with comparable peers. “Comparable cost-to-income ratio keeps margins competitive,” said Farouk Miah. “The salary bonuses which were paid in 1H11 increased the Saudi banks’ cost-to-income ratio to 36% in 1H11 from 34% in 2010. Despite an increase in the cost-to-income ratio, the operating efficiency of Saudi banks is lower than the GCC peers’ average cost ratio at 38.5%.”

Saudi banks’ equity multiple stands at 6.5x against the GCC average of 7.8x, US’s 8.8x and SAMA’s comfortable limit of 8.0x. This shows that there is scope for Saudi banks to increase their loan books and expand their ROE.

In addition, Saudi banks’ profitability remains one of the strongest and ROE and ROA levels increased in 1H11 to 14.9% and 2.3% respectively from 13.2% and 2.0% in 2010, supported by lower provisions and strong fee income. Comparable net interest spreads, growing fee income, reduced cost of risk and comparable cost efficiency all lead to significant ROE and ROA levels when compared to peers. Qatar with 18.2% ROE and 2.8% ROA in 1H11 remained the strongest in terms of banking profitability. With the exception of Kuwait and Oman, all the other countries witnessed an improvement in profitability levels in 1H11.

Mr. Miah concluded: “The Saudi banking sector is the most liquid with 0.32% of free float volume traded daily on average for the last three months. This is higher than other peers in the GCC. Qatar ranks the second highest with a ratio of 0.12%. UAE’s banking sector which has 19 listed banks is surprisingly amongst the lowest with just 0.03%.”

Despite the Saudi banking sector index falling by about 13% YTD, the Saudi banks’ total market cap was the highest in the region followed by Qatar and Kuwait .The Saudi banking sector’s market cap represents more than 34% of the GCC banking market cap.

Jeddah-Saudi Arabia: – The need to optimize energy management in the next generation of healthcare amenities was highlighted by Schneider Electric, the global specialist in energy management, during its participation at the Healthcare Facilities Design and Development 2011, an initiative aimed at highlighting key solutions to resolve the latest challenges in Saudi Arabia’s health infrastructure industry.

Organized by IQPC, the event held at the Park Hyatt in Jeddah from 19-21 November featured technical presentations from key experts demonstrating best practices in the area of health facility design and development. Schneider Electric supported the event as a Platinum sponsor.

Michael Sullivan, Vice President-Healthcare Solutions, Schneider Electric, delivered a workshop on ‘Implementing state-of-the-art health facility designs to maximize ROI’. The session examined design features that improve efficiency. It also underscored the rise in demand for health services driven by a growing population in Saudi Arabia. The workshop additionally recorded the development of the healthcare sector with the coming up of several new infrastructure projects including small-sized medical clinics as well as large-scale teaching and research hospitals.

Mohammad Al-Hajjaj, Healthcare Solutions and Segment Manager at Schneider Electric Saudi Arabia, said: “The design of these new facilities is of utmost importance.  A major challenge for the health sector today is combining continuity and quality of healthcare whilst optimizing building investment and operating costs. Ensuring smooth functioning and deriving increased ROI from these new projects is essential. However, this has to be accompanied with patient satisfaction, safety and security through the provision of international standard services.

“The workshop helped us explore design perquisites to develop a health facility that increases revenue, improves staff productivity, maintains a longer operational lifecycle and provides world-class services to patients.”

Michael Sullivan additionally delivered a presentation on ‘Build a Better Hospital’, focusing on the areas of patient safety, financial performance and patient satisfaction.

The Healthcare Facilities Design and Development event provides a forum for industry specialists including government representatives as well as hospital and medical directors to learn from regional and international case studies in health infrastructure. The event also offers a platform to evaluate the latest software in health facility design and facilitates participants to network with key figures and government officials in Saudi Arabia’s healthcare sector.

Schneider Electric’s intelligent hospital infrastructure that improves an existing hospital or enables the construction of a new efficient facility are based on the EcoStruxure approach that complies with the latest LEED requirements for developing green buildings.

Schneider Electric’s integrated hospital solutions can improve margins by up to 25 per cent through improving energy efficiency. Mitigating risks of electrical incidents, advanced power management, reducing hospital-acquired infections with environmental controls, and securing the pulse of a hospital with integrated security solutions are some of the benefits of the application.

November 21, 2011

Riyadh Exhibitions Company, a leading Saudi exhibitions and conferences organizer, held a press conference yesterday (Sunday, November 20, 2011) at the Four Seasons Hotel in Riyadh, to shed light on its upcoming mega trade event, Saudi PP (Plastics & Petrochem) & Saudi PPSG (Print, Pack, Sign and Graphics) 2011. REC announced that more than 500 companies from 19 countries are expected to attend the Saudi PP & PPSG 2011 exhibition, the bi-annual show that draws in exhibitors and visitors from Europe, Asia, the Middle East and Africa.

Commercial counselors of some of the countries participating with National Pavilions at the show, in addition to some of the biggest trade exhibitors and major sponsors of the event, including Sabic, Tasnee and Modon, joined REC during the press conference to highlight their role in the show and their position in the local market to capitalize on the steady performance of the industrial sector. Commercial counselors stressed on their countries’ commitment to cultivate strong strategic relations with businessmen and industrialists in Saudi Arabia.

Running from Muharram 3 to 6, 1433 (H) / November 28 to December 1, 2011, at the Riyadh International Convention & Exhibition Center and supported by Saudi Industrial Property Authority (MODON) and diamond sponsor Saudi Basic Industries Corporation (SABIC) & Tasnee and gold sponsor Petro Rabigh, Saudi PP & PPSG 2011 will host several national pavilions from different countries, including Austria, China, Egypt, Germany, India, Italy, Korea, Taiwan, Turkey and the UAE.

Mohamed Al Hussaini, Deputy General Manager, REC, said: “Saudi PP & PPSG 2011 is ideally positioned to cater to the networking needs of key stakeholders in the petrochemical, plastic, printing, packaging and sign & graphics industries, creating a conducive venue to meet and discuss the latest industrial trends and business opportunities in KSA and across the region. In light of the favorable economic landscape, we expect a significant increase in the number of trade exhibitors and visitors this year, including key decision makers, industrialists, developers and contractors.”

Saudi PP & PPSG 2011 will be a mega trade fair that combines the Saudi Plastics & Petrochem 2011, The 10th International Plastics and Petrochemicals Trade Fair, Saudi PPSG – The 10th International Packaging, Printing, Sign and Graphics Technologies Exhibition, and Makinat Saudi Arabia 2011 – The International Trade Exhibition for Industrial Machinery, Machine Tools, and Equipment & Technology for Saudi Arabia.

The mega trade event is set to showcase a wide array of industrial products and services including plastic containers, furniture, healthcare products, injection systems, pipes and household appliances, in addition to petrochemical products like handling and processing equipment, chemical engineering systems, chemical plant and machinery, environmental and safety equipment and labs and control equipment. Products to be showcased also include consumer goods packaging, design and fabrication services, food and industrial packaging equipment, material and supplies, and printing equipments such as binding, cutting and folding machines, design and printing services and digital direct printing. Architectural hardware, electric signage, graphic imaging and services and photo imaging and printing are among the sign and graphics highlights at the event.

A joint venture between Royal Dutch Shell and Saudi Aramco has won approval from the Saudi government to study the possible development of Kidan area, in Saudi Arabia’s Empty Quarter, the South Rub al-Khali Co (SRAK) venture said on Wednesday.

Kidan is rich in sour gas and is near the 750,000 barrels per day (bpd) Shaybah oilfield, one of the biggest in the world’s top oil exporter. Sour gas has high levels of potentially deadly hydrogen sulphide and therefore is tougher to produce than conventional gas reserves.

Officials from Shell and the joint venture have said further studies are needed to understand the economics of the field before deciding whether it can be developed.

SRAK will drill up to three appraisal wells and conduct extensive studies and aims to complete its appraisal by end-2013.

It submitted its plan last year to continue exploration in Kidan, an area already discovered by Aramco years ago, after announcing in 2009 gas had flowed from Kidan.

“The delineation is very likely to prove significant volumes of additional gas reserves,” said Sadad al-Husseini, an oil analyst and former top official at the Saudi oil giant Aramco.

“The kingdom and the Gulf has important sour gas reserves and these studies will facilitate the development of other similar accumulations,” he said.

SRAK said it completed drilling the first of three exploration wells it plans to drill as part of a second phase of gas exploration.

One factor that could improve the economics of the Kidan exploration area is its proximity to Shaybah, where infrastructure for both oil and associated gas is in place, Michel Faure, the Chief Executive of Shell Saudi Arabia told Reuters in an interview.

Saudi Arabia, which has kept its vast oil reserves off-limits to foreigners, needs gas to help cover domestic fuel demand and conserve oil for lucrative export markets. It invited investors in 2003-2004 to find and produce gas in the desert in Saudi Arabia’s southeast, known as Rub Al Khali.

So far the four consortia have failed to find the volume of gas needed to fuel Saudi economic growth or guarantee returns for investors.

The former CEO of SRAK Kamal al-Yahya told Reuters in October 2010 he saw a potential for Kidan field and the surrounding area “to provide a significant future gas resources for the kingdom.”

Saudi Arabia accounts for up to 70 per cent of the GCC’s market in sign & graphics

November 14, 2011

The digital signage market in the Middle East and North Africa (MENA) is estimated to grow to 9 million units by 2016 from 2.23 million units in 2010 according to recent industry reports. The latest developments in digital signage will be highlighted at the Saudi Sign & Graphics 2011 – The 10th International Sign and Graphics Technologies Exhibition that will be held from 3 to 6 Muharram 1433 (H) / November 28 to December 1, 2011 at the Riyadh International Convention & Exhibition Centre.

New age media will be a major focus area during the four-day event, especially given the rapid advancements in this domain. With the wide range of alternative advertising avenues such as e-marketing, direct marketing and digital signage available in the region, the Saudi Sign and Graphics 2011 will serve as a vital networking and business platform for all industry stakeholders.

“Saudi Arabia accounts for up to 70 per cent of the GCC’s market in sign & graphics, and Saudi Sign and Graphics offers direct access to this promising marketplace. Digital technologies ensure that today’s sign and graphic industry is readily adaptable and completely versatile. Saudi Sign and Graphics will present the most advanced digital signage technologies and industry information, in the process underlining its status as one of the most important events of its kind in the region,” said Kamil Al Jawhari, Project Manager of Saudi Sign and Graphics at Riyadh Exhibitions Company.

Saudi Sign and Graphics 2011 will continue to raise the standards of the signage industry by providing exhibitors and visitors with top-rated service, convenience and knowledge in all aspects of the signage industry, from digital graphics to an electrical sign, and from dimensional cut letters to a trade show sign or booth.

Saudi Sign and Graphics is a bi-annual platform that draws in exhibitors and visitors from Europe, Asia, the Middle East and Africa. The latest edition will run concurrently with Saudi Print 2011 – The 10th International Printing Technologies Exhibition, Saudi Pack 2011 – The 10th International Packaging Technologies Exhibition, and Saudi Plas & Petrochem 2011 – The 10th International Plastics and Petrochemicals Trade Fair, and will cover in-house graphics, production, manufacturing and custom fabrication. It will showcase several new formats and cross-media concepts and provide a global industry perspective.

More information on Saudi Sign and Graphics is available at http://www.saudippsg.com.

Saudi Arabia will overtake Russia as the world’s largest crude oil producer in about 2015 as output at new Russian fields fails to offset fast decline at mature deposits, the International Energy Agency (IEA) said on Wednesday.

In its World Energy Outlook the IEA also said Russia would eventually start to supply natural gas to China, becoming a major source of the fuel despite gas export monopoly Gazprom’s failure so far to secure a supply deal after five years of talks.

Russia overtook Saudi Arabia as the top producer of oil when the Organisation of the Petroleum Exporting Countries cut crude output during the economic crisis in 2009.

But while Russia’s output will plateau at 10.5 million barrels per day, Saudi Arabia’s will rise to match Russia’s in roughly 2015, and hit 14 million bpd by 2035.

Until the end of last year, OPEC members agreed a series of targets for their own production in an effort to stabilise the world oil market. However, these production limits have largely been abandoned this year since Libyan output was interrupted.

Russia will see output fall to 9.7 million barrels per day by that date, provided it implements new stimulus measures for upstream production, the IEA said.

The government forecasts steady output of roughly 10 million barrels per day until 2020. IEA figures are likely to be higher due to a difference in the basis for its calculations.

Russia - where production peaked at 11.41 million barrels per day (bpd) in 1988 under Soviet rule - has driven output to post-Soviet highs above 10 million barrels per day by bringing new fields on stream but these will not prevent decline from setting in later this decade.

“Russian fiscal policy is a key determinant of when and how quickly Russian production will decline. Current terms limit the incentive to invest when prices rise; our projections assume sympathetic evolution of taxation,” the IEA said.

By 2035, Russia will still be the world’s largest gas producer and natural gas exports should more than double to 330 billion cubic metres (bcm) due to new deliveries to China.

Russia aims to start gas export to China by 2016 of as much as 68 bcm per year, equal to nearly half of Europe’s intake.

But Gazprom officials have conceded that an agreement on Chinese supplies will not be concluded this year, implying a delay to the planned start to deliveries.

Analysts say Russia has a capacity reserve in the form of energy efficiency improvements, which are taking place as the hydrocarbon dependent country tries to diversify away from commodi.

But the IEA said Russia needs to pick up the pace of change.

“If Russia increased its energy efficiency in each sector to the levels of comparable (developed) countries, it could save almost 1/3 of its annual primary energy use, an amount similar to the energy used in one year by the United Kingdom,” it said.

“Faster implementation of efficiency improvements and energy market reforms would accelerate the modernisation of the Russian economy and thereby loosen its dependency on movements in international commodity prices.”

Energy efficiency in Russia, although improved in recent years, remains low due to poor infrastructure and harsh climate.

Total energy demand in Russia is projected to rise 28 percent by 2035 to 830 million tonnes of oil equivalent at a 1 percent average annual rate, with transportation growing the fastest, followed by industry and power sectors.

Saudi Arabia’s banking system is among the safest in the world, according to new global assessment published by Standard & Poor’s on Wednesday.

The ratings agency gave the Gulf kingdom a Banking Industry Country Risk Assessment (BICRA) rating of 2, upgraded from 3, making it the most low-risk banking sector in the Middle East.

Globally, only Canada and Switzerland were ranked higher with a Group 1 rating while Saudi Arabia were in the same group as countries such as Germany, France, Hong Kong, Singapore, Norway and Finland.

Both the US and the UK were ranked in Group 3, S&P said in a statement, which also showed.

The UAE’s BICRA rating was downgraded from Group 4 to 5 weighed by a high exposure to real estate and uncertainty about exposure to some government-related entities (GREs).

S&P said: “Although UAE’s banking regulation is gradually moving toward international standards, we believe progress can still be made in implementing existing regulations and supervising the banks in the system more effectively.”

Last week, Moody’s maintained its negative outlook on the UAE banking system, saying lending would be subdued for the near-term.

S&P also downgraded the BICRA rating for Bahrain from Group 5 to 6 where it joined the likes of Croatia, Estonia, and Guatemala.

Kuwait’s banking sector was upgraded from Group 5 to 4, alongside Qatar, Oman, Peru, South Africa, Malaysia, and Mexico.

Like Kuwait, Oman’s banking sector was upgraded by one group by S&P while Qatar maintained its Group 4 rating.

Globally, S&P said banking sectors still face trying times in the aftermath of the financial crisis.

“We believe the risk of downward changes to the BICRA groups presently outweighs the possibilities for upward revisions. This is true for both mature and emerging economies,” S&P said in a statement.

In Western Europe and North America, banks are more vulnerable, mainly because of the continued repercussions of financial market turmoil and, in the case of Europe, sovereign distress.

By comparison, banking industry risks have stayed relatively stable in Central and Eastern Europe, the Middle East, and Africa, as well as in Asia-Pacific, S&P said.

On Saudi Arabia’s banking sector, S&P said its banks “have adequate lending practices and underwriting standards, as well as a good track record in maintaining strong asset quality indicators”.

The ratings agency also assigned an economic risk score of 3 for the kingdom, reflecting its view that there is intermediate risk in economic resilience, low risk in economic imbalances, and intermediate risk in credit risk.

This was again the best rating for the Gulf region as the UAE was given a score of 5, Bahrain scored 6, while Kuwait, Oman and Qatar rated 4.

All Gulf governments were assumed to be “highly supportive” towards domestic banking, the S&P report said.

A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (1) to the highest-risk (10).

Belarus, Greece and Vietnam were the only banking systems which scored a 10 out of 86 countries covered by the ratings.

Jeddah - KSA: The city of Jeddah witnessed a major opening celebration for Kamal Osman Jamjoom’s Trading Group. The occasion consisted of launching six branches of different brands such as Mikyajy, Early Learning Centre, Ulla Popken, List, The Body Shop and Nayomi, at Haifa Mall in Jeddah. The total number of branches in the group now exceeds 500 within the Gulf region and North Africa. The event was hosted by the CEO and group founder, Mr.Kamal Osman Jamjoom. The ceremony was attended by a large number of public figures and businessmen, press and media representatives, as well as many of the company’s employees and shoppers.

To this occasion, Mr. Jamjoom stated, “I’m pleased to hold this opening today as we broaden the group’s reach with the inauguration of our 500th branch. We started out by opening our first store in 1987 with “The Body Shop” series, and despite the small number of shopping centers at the time, the group was able to achieve success and expand its business into Saudi Arabia and the UAE, Oman, Qatar, Bahrain, and Kuwait, reaching North Africa.

I am personally glad that I played such a collaborative role alongside the rest of the team as we challenged ourselves to meet and surpass the group’s goals. Today we are celebrating how far we’ve come.  We would not be where we are without the support of “God” and the great effort and hard-work of our team.”

Kamal Osman Jamjoom’s Group was recently ranked “Platinum” in the “Nitaqat program” developed by the Saudi Ministry of Labor. This is living proof of the group’s continuing success as one of the leading companies in Saudi Arabia. Considered the first company to start the conversion of underwear shopping branches to ladies serving the public in the year 2000, today the group has about 25 ladies branches and is planning to open more branch offices to provide significant employment opportunities for Saudi women.

In regards to future plans, Mr. Kamal Jamjoom declared, “Gulf markets have special characteristics in terms of the strength of the economy and population growth of 3 to 5% per year, which will reach 50% in ten years. This is where we see opportunity to broaden our scope even further.  We will open a larger number of shops and increase the profiles of several of the group’s brands, including Nayomi, Soiree and Mikyajy, as well as work with leading commercial centers in the region for the purpose of achieving our goals.

It is well known that Kamal Osman Jamjoom Group is famous for its ability to create brands and take them from local to international standards in terms of quality, innovation and diversification.  The group continuously provides reliable services and products to customers through these three main themes, with unparalleled value and the finest levels of service.