Saudi assistance to the private sector will fall short

2020 ◽  
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Content Type

Headline SAUDI ARABIA: Private sector aid will fall short

What influences bank lending in Saudi Arabia?

2020 ◽  
Vol 27 (2) ◽  
pp. 125-155
Author(s):  
Ken Miyajima
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Balance Sheet ◽  
Oil Prices ◽  
Bank Lending ◽  
Policy Implications ◽  
Content Type ◽  
Balance Sheets ◽  
Level Data ◽  
Bank Balance Sheets

PurposeDeterminants of credit growth in Saudi Arabia are investigated.Design/methodology/approachA panel approach is applied to macroeconomic and bank-level data spanning 2000 ‐15.FindingsBank lending is supported by strong bank balance sheet conditions (high capital ratio, and growth of NPL provisioning and deposits), and higher growth of both oil prices and non-oil private sector GDP. Lower bank concentration also helps, likely through greater competition, so does stronger institution. Consistent with the literature, lending by Islamic banks may be more responsive to economic activity. Lending remained robust in 2015 despite oil prices having declined, helped by strong bank balance sheets and as banks reduced their holdings of “excess liquidity”. To support bank lending in the period ahead, bank balance sheets need to remain strong. Fiscal adjustment and a reduced reliance on banks to finance the budget deficit would support credit provision to the private sector.Originality/valueThe paper is first to analyze in detail determinants of bank lending in Saudi Arabia applying a panel approach to bank level data, and draws critical policy implications.

Saudi Arabia's private sector will struggle

2016 ◽  
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Content Type

Headline SAUDI ARABIA: The private sector will struggle

Institutional barriers to women’s employment in Saudi Arabia

2018 ◽  
Vol 37 (7) ◽  
pp. 713-727 ◽  
Author(s):  
Abeer Alfarran ◽  
Joanne Pyke ◽  
Pauline Stanton
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Labour Force ◽  
Labour Force Participation ◽  
Women's Employment ◽  
Employment Policy ◽  
Institutional Barriers ◽  
Women’S Employment ◽  
Content Type ◽  
Saudi Women

Purpose The purpose of this paper is to explore the effectiveness of the Saudi employment programme “Nitaqat” in addressing institutional barriers to women’s employment in the Saudi private sector. The paper has a particular focus on the perspectives of unemployed women as the intended recipients of increased employment opportunities. Design/methodology/approach This paper adopts a qualitative approach, drawing on findings from face-to-face interviews conducted with two groups of stakeholders, government officials and unemployed Saudi women. Findings Four key findings are identified. First, the considerable cultural and regulatory barriers of a conservative society are resilient impediments to the success of Saudi employment policy. Second, discrimination against women is endemic in the Saudi society; however, it is largely unrecognised within the Saudi culture and often accepted by women themselves. Third, due to government regulations, cultural constraints and the gendered educational system, the private sector contributes to sustaining labour market segmentation through discriminatory practices. Finally, while a positive change is taking place in Saudi Arabia regarding women’s employment, it is incremental and uneven. Originality/value This paper provides new insights into the institutional barriers related to the labour force participation of Saudi women from the perspective of Saudi women themselves.

scholarly journals Determinants of effective university–business collaboration

2019 ◽  
Vol 1 (3) ◽  
pp. 169-180
Author(s):  
Ahmed Naser Alrajhi ◽  
Necati Aydin
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Strong Predictor ◽  
Linear Regression Analysis ◽  
Public Funding ◽  
Sufficient Evidence ◽  
Private Funding ◽  
Content Type ◽  
Teaching Load ◽  
Business Collaboration

Purpose The attention to the university–business collaboration (UBC) for its role in the knowledge-based economy is growing in many countries. In this context, the purpose of this paper is to conduct two surveys to explore the causes of low collaboration between the private sector and academia in the Kingdom of Saudi Arabia. Design/methodology/approach The first survey covers nearly 50 companies to learn their perspectives. Using the findings of the first survey, a second survey was conducted of university researchers to understand the determinants of private and public funding of research and development projects. The survey provided two types of data, namely, categorical and continuous, which were subjected to reliability and normality tests. A linear regression analysis also was utilized to explore the role of different factors on the funded projects by the two sectors. Findings There is a perception among researchers that the private sector is woefully underestimating research capacity of Saudi universities. One interesting finding is that publishing in journals from the International Scientific Indexing (ISI) is a strong predictor for government funding, but not for private funding. From the private sector perspective, publishing in ISI-indexed journals is not sufficient evidence of research capability. Moreover, high teaching load is a major obstacle in acquiring private funding, but not so for public funding. Practical implications The paper provides two main recommendations to improve collaboration. First, universities should incentivize publishing in high-impact journals more than in ISI-indexed journals to increase the faculty’s research capabilities. Second, universities should reduce the teaching load of faculty involved in research projects, particularly those funded by the private sector. Originality/value The outcomes of this survey-based study are very valuable to the ecosystem of academia, business and government in general and for Saudi Arabia in particular, where there is a vital need to implement the right policies regarding UBC in the country.

Saudi private sector will struggle despite oil hikes

2018 ◽  
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Content Type

Headline SAUDI ARABIA: The private sector is likely to struggle

Islamic banking and real performances in a dual banking system

2019 ◽  
Vol 12 (3) ◽  
pp. 426-447
Author(s):  
Mohamed Ben Mimoun
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Banking System ◽  
Policy Implications ◽  
Islamic Banking ◽  
Dynamic Interactions ◽  
Causality Test ◽  
Content Type ◽  
Private Sector Investment ◽  
Long Run

Purpose There is a rich debate on the nature of Islamic banking (IB)–growth nexus and the direction of causality governing this nexus. This study aims to focus on this issue in the case of Saudi Arabia, the largest country-holder of Islamic Banks (IBs)’ assets worldwide. It assesses empirically the nature of dynamic interactions between IBs’ financing and the real performances in the non-oil private sector (investment and GDP) in the context of a dual banking system where IBs operate alongside their conventional counterparts. Design/methodology/approach This study employs the Bounds test in the context of reparametrized autoregression distribution lags (ARDL) models to analyse both long-run and short-run dynamics governing Islamic and conventional banks’ (CBs) financings on one hand and real investment and GDP in the private sector on the other hand over the 2007q1-2016q4 period. It also uses the Toda and Yamamoto (1995) augmented Granger-causality test to assess the direction of causality governing these dynamics. Findings The more important results are: there is a stable and significant long-run relationship between IBs’ financing and real performances in the private sector. This nexus is governed by the “feed-back hypothesis”, implying the validity of both the “supply-leading” and the “demand-following” hypotheses. In a dual banking system context, IBs exert two effects on the financing of their conventional counterparts: a negative “crowding-out” effect and a positive and “stimulating” effect which transmits through the “competition” channel. Finally, in the long-run, steady-state, real GDP is dissociated from CBs’ financing. Originality/value This paper highlights an issue that has not received the needed attention in the case of Saudi Arabia. It has also found novel results with important policy implications.

Organizational policies and diversity management in Saudi Arabia

2019 ◽  
Vol 41 (3) ◽  
pp. 454-474 ◽  
Author(s):  
Mohamed-Osman Shereif Mahdi Abaker ◽  
Omar Ahmad Khalid Al-Titi ◽  
Natheer Shawqi Al-Nasr
Keyword(s):  
Saudi Arabia ◽  
Health Insurance ◽  
Private Sector ◽  
Multinational Corporations ◽  
Diversity Management ◽  
Content Type ◽  
Organizational Policies ◽  
Insurance Policies ◽  
Organizational Policies And Practices ◽  
Policies And Practices

PurposeThe purpose of this paper is to report empirical research conducted in Saudi Arabia on the impacts of organizational policies and practices on the diversity management of the Saudi private sector. To this end, the Saudization policy and views of key respondents have been tested and discussed.Design/methodology/approachPrimary data were collected through questionnaire surveys from the largest 11 private sector organizations listed on the Saudi Stock Market in the financial/banking, oil and gas, petrochemical, private higher education and private health service sectors. Statistical tools such as means and standard deviations and one-samplet-tests were used for analysis.FindingsThe findings suggest that Saudization, retention, pay with benefits and health insurance policies significantly affect the diversity management in the Saudi private sector. Therefore, there is a need to develop organizational policies that support the existence of foreign employees for private businesses in Saudi Arabia. Considering differences as strengths that can be utilized to enhance performance, a diverse workforce might better be able to serve diverse markets.Research limitations/implicationsCollecting data from a closed environment such as Saudi Arabia is constrained by access difficulties, as well as inadequate literature on relevant diversity issues. However, the convenience sampling method and snowballing approach adopted in this study generated reliable data. As a result, this study has implications for both the multinational corporations operating in Saudi Arabia and Saudi owned companies operating in the West and intending to adopt and implement diversity management initiatives for branches in different countries. As such, further research on the gulf countries’ diversity management issues would be critical.Originality/valueThe current study is a first survey-based research endeavor on the topic of diversity management in the Saudi context. The findings contribute to the limited knowledge base on middle eastern countries, thus presenting new empirical evidence on the organizational policies and practices of Saudization, retention, pay and benefits and health insurance policies. The study of the Saudi case, thus adds value to the existing knowledge on diversity management.

The Saudi crown prince will relaunch his grand plans

2021 ◽  
Keyword(s):  
Saudi Arabia ◽  
Private Sector ◽  
Central Bank ◽  
Foreign Investment ◽  
Content Type ◽  
Bank Reserves ◽  
International Borrowing ◽  
Main Instrument ◽  
Crown Prince ◽  
Fresh Impetus

Significance Crown Prince Mohammed bin Salman has started 2021 with a series of bold initiatives to give fresh impetus to visionary investment plans, after a pause because of reputational reverses and then COVID-19. The PIF is the main instrument for these, with support from the Saudi private sector, foreign investment and international borrowing. Impacts The PIF will reduce its prioritisation of foreign trophy assets. Pressure on central bank reserves could endanger the currency peg in the longer term. Saudi Arabia will emphasise climate-friendly approaches to placate a new US administration.

Relationship between CSR motivations and corporate social performance: a study in the power industry in India

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Moumita Acharyya ◽  
Tanuja Agarwala
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Corporate Social Performance ◽  
Social Performance ◽  
Power Sector ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Self Interest ◽  
Public And Private Sector

PurposeThe paper aims to understand the different motivations / reasons for engaging in CSR initiatives by the organizations. In addition, the study also examines the relationship between CSR motivations and corporate social performance (CSP).Design/methodology/approachThe data were collected from two power sector organizations: one was a private sector firm and the other was a public sector firm. A comparative analysis of the variables with respect to private and public sector organizations was conducted. A questionnaire survey was administered among 370 employees working in the power sector, with 199 executives from public sector and 171 from private sector.Findings“Philanthropic” motivation emerged as the most dominant CSR motivation among both the public and private sector firms. The private sector firm was found to be significantly higher with respect to “philanthropic”, “enlightened self-interest” and “normative” CSR motivations when compared with the public sector firms. Findings suggest that public and private sector firms differed significantly on four CSR motivations, namely, “philanthropic”, “enlightened self-interest”, “normative” and “coercive”. The CSP score was significantly different among the two power sector firms of public and private sectors. The private sector firm had a higher CSP level than the public sector undertaking.Research limitations/implicationsFurther studies in the domain need to address differences in CSR motivations and CSP across other sectors to understand the role of industry characteristics in influencing social development targets of organizations. Research also needs to focus on demonstrating the relationship between CSP and financial performance of the firms. Further, the HR outcomes of CSR initiatives and measurement of CSP indicators, such as attracting and retaining talent, employee commitment and organizational climate factors, need to be assessed.Originality/valueThe social issues are now directly linked with the business model to ensure consistency and community development. The results reveal a need for “enlightened self-interest” which is the second dominant CSR motivation among the organizations. The study makes a novel contribution by determining that competitive and coercive motivations are not functional as part of organizational CSR strategy. CSR can never be forced as the very idea is to do social good. Eventually, the CSR approach demands a commitment from within. The organizations need to emphasize more voluntary engagement of employees and go beyond statutory requirements for realizing the true CSR benefits.

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