(MENAFN- Arab News) The tenth edition of Euromoney Saudi Arabia conference concluded here on Wednesday with a firm belief that multisectoral reforms to diversify the Kingdom's economy an approach to look beyond the oil sector will add value to the local market with financial dynamism.
Experts in the first session of the concluding day on sovereign bonds and sukuk referred to the intersection of ethical investment and Islamic finance in the wake of the Tadawul opening up to foreign investors for the first time.
The speakers including Cyrus Ardalan Barclays vice chairman and head of public policy government relations and Michael Benett World Bank head of derivatives and structured finance said various ways means available needed to be looked into in order to promote the local currency bond and sukuk market. Such a move will help create plenty of opportunities for foreign investors in the banking sector especially those international banks which have valuable experience in dealing with Islamic finance.
The panelists observed that in the context of the global financial crisis Islamic finance is seen as a significant option in international market which is good for the Kingdom that plays a leadership role.
The next panel of experts reviewed the current situation in the debt market and the options available for large enterprises looking to raise funds with the main focus on the potential to build an international market for sukuk as an alternate choice.
Mosaed Al-Ohali CFO SABIC a key member of the panel said: "Companies operating in the Kingdom need to have access to long-term funding as it will help in creating significant appetite for bond issuance.
"SABIC has been a pioneer in the sukuk market and we believe there is a growing need for the right tools to be in place to ensure correct pricing and ratings" Al-Ohali added.
Speaking on the topic Mohammad Al-Otaibi vice CEO finance at the National Shipping Company (Bahri) in its perspectives on the current state of the debt market stressed the need for enterprises to develop balanced financial strategies.
Doug Bitcon head of fixed income funds and portfolio management at Rasmala Asset Management and Mohieddine Kronfol chief investment officer global sukuk and MENA fixed income Franklin Templeton Investments spoke from the point of view of the financial sector and outlined the incredible steps taken in the recent past to develop innovative Islamic financing solutions.
The third session held discussions on the private finance for public projects with a focus on whether the Kingdom's regulatory environment encourages private finance.
Leading the discussion Suhail M. Al-Almaee executive director of projects sector at Tatweer Education Holding Company citing his experience in the e-governance program maintained that the regulatory environment in the Kingdom does encourage public-private partnership (PPP) model and the framework is a win-win situation for both the parties.
Basel Al-Jabr CEO of Haj and Umrah Terminals Construction and Development Company (HTDC) said the PPP model is well tested in social structure like schools and hospital and other health care projects.
Third speaker Faisal Qadri head of project and export finance HSBC Saudi Arabia Ltd. stressed the need for capacity building. There are plenty of opportunities in the Kingdom's social sectors he added.
Abu Bakar Chaudhary of IDB welcomed the opening up of Tadawul to international participation and said: 'This will encourage private finance for public projects.' He however wanted skill-based training to be given to Saudi youth so that they could handle the market in its upcoming form.
A special panel reviewed the Kingdom's increased focus on small and medium enterprises (SMEs) as it offers significant growth potential for private capital as also the changing dynamics of SMEs the real estate market and the opportunities to be created for investors financiers and developers.
Being organized annually with the support of the Ministry of Finance the conference also examined opportunities and challenges for the Kingdom's market to mark a decade of unprecedented change.