Policymaking crucial for elevating Saudi industrial sector: vice minister

DAVOS: Qatar considers it a duty to support Syria and its new administration after 14 years of devastating civil war, Qatari Finance Minister Ali Ahmed Al-Kuwari said on Wednesday.

The cost of reconstructing Syria is estimated at $400 billion, as the country needs to rebuild the housing, industrial and energy infrastructure damaged during the conflict.

Since 2011, Qatar supported Syrian opposition factions that captured the seat of power in Damascus in early December 2024.

Doha also avoided reestablishing diplomatic relations during the twilight months of the Assad regime, which rejoined the Arab League in 2023.

Al-Kuwari, who visited Syria last week, said: “The whole world is supposed to help Syria (right now). The words and promises from the leadership there are promising and very positive.”

He added that the new leadership, led by rebel-turned-statesman Ahmed Al-Sharaa, recognizes that the task ahead is transitioning from insurgency to building Syrian institutions.

“This task will need the help of the world. We can’t afford Syria going back to the (years) of bloodshed again,” Al-Kuwari said.

“We’ll invest in education (to help the Syrians) because educated people will work hard, they’ll make money, they’ll prosper and grow.”

The Qatari minister made these comments during the “Navigating the Fiscal Squeeze” panel at the World Economic Forum in Davos, which discussed challenges for financial growth, global debt and rising inflation.

The panel included speakers from the International Monetary Fund, the UCLA School of Law, the London Stock Exchange Group, and Zimbabwe’s Finance Minister Mthuli Ncube.

Qatar has one of the highest per capita incomes in the world, making it one of the wealthiest nations due to its abundant natural gas and oil reserves.

However, the country dealt with several challenges following the COVID-19 pandemic, leading to an inflation rate of 5 percent in 2022.

Doha was not alone in facing these difficulties; the pandemic contributed to a nearly 4.4 percent contraction of the global economy in 2020. 

Al-Kuwari said Qatar is pursuing a policy of fiscal discipline, which has allowed the country to maintain a budget surplus and low debt levels, as well as effectively manage any economic challenges it encounters.

“We’ve developed a medium-term fiscal policy framework for the upcoming 20 years, with different scenarios of revenues based on oil prices, taxation and spending scenarios ... (Based on that) we decide to invest or save,” he said, adding that the fiscal deficit and rising borrowing affecting many countries are “problems that few want to discuss,” which poses the threat of a financial crisis.

An IMF report projected that global debt — including government, business and personal borrowing — will exceed $100 trillion, about 93 percent of global gross domestic product, by the end of 2024. It is expected to reach 100 percent of GDP by 2030.

“There will be a huge impact if we don’t do anything about it today,” Al-Kuwari warned. “So many people focus on economic growth and creating quick wins for their economy while the fiscal issues get forgotten.

“The fiscal balance should complement the economic growth, and we shouldn’t have growth at the expense of the fiscal.”

DAVOS: Saudi Arabia’s real estate sector is undergoing a transformation that ranges from affordable housing to luxury living under the Kingdom’s Vision 2030 reform agenda, according to the chairman of Saudi company Dar Al Arkan.

Yousef A. Al-Shelash highlighted the strides being made during a conversation with Arab News at the annual meeting of the World Economic Forum in Davos on Wednesday.

“The Vision 2030 has developed the whole economy, not only the real estate sector,” Al-Shelash said. “It’s developed not only the approach of the sector, but it has also brought a new standard in regulations to be as good as we deserve.”

As one of the world’s top 20 economies, Saudi Arabia’s evolving real estate market reflects its broader ambitions. “As a country, we are one of the big 20 economies of the world, so we believe the Saudis deserve more,” Al-Shelash added.

Vision 2030 places a strong emphasis on affordable housing and improving living standards for Saudi citizens. Al-Shelash said that the government is playing a proactive role in ensuring these goals are met.

“The vision is there not only to facilitate for the developers and for the foreign investors, but also to facilitate affordable housing for most of the Saudi citizens,” he said.

The Kingdom’s growing population and rapid urbanization have led to a pressing demand for housing.

“The Kingdom needs more housing, and that requires a lot of funding and development,” Al-Shelash said.

He emphasized the role of government entities such as the Public Investment Fund and the Ministry of Housing in elevating the industry’s standards.

“The government itself has entered to become a developer or a service provider, not just to compete with the private sector, but to raise the standard,” he said.

In addition to affordable housing, Saudi Arabia is experiencing strong demand in the ultra-high-net-worth individual market. “There's a lot of demand. We have more than 3,000 brokers worldwide, a lot of demand from foreign entities to invest in (the Kingdom) and to hold a second home in Saudi Arabia,” he added. He also expressed his confidence that regulatory changes to facilitate such investments “will be coming any time now.”

Dar Global, the international arm of Dar Al Arkan of which Al-Shelash is vice-chairman, listed on the London Stock Exchange in 2023 and Al-Shelash underscored the significance of this move. “London is for sure an attractive market for Saudi investors. The stock exchange there is one of the best worldwide. So that will put the company on a very high standard regulation,” he said.

The listing not only positions Dar Global among the world’s most regulated markets but also strengthens its ability to collaborate with local partners in diverse regions. “To be a developer, you have to be with some other partners. So, if you would like to do some joint ventures or work with other companies — because the real estate industry is everywhere — it’s about local knowledge,” he said.

Developing real estate sustainably is becoming a cornerstone of the Kingdom’s development strategy, and this is the case for Dar Al Arkan, domestically and internationally. “Developing sustainably is about embracing and using the technology that’s out there and facilitating green practices wherever possible,” Al-Shelash said.