Finance – Hammad & Al-Mehdar Law Firm

Hammad & Al-Mehdar Contributes the Saudi Arabia Chapter to The Mergers & Acquisitions Review, 14th Edition

Posted on July 2, 2021 - 10:08 am by perpetual-admin

HAMMAD & AL-MEHDAR CONTRIBUTES THE SAUDI ARABIA CHAPTER TO THE MERGERS & ACQUISITIONS REVIEW, 14TH EDITION

Hammad & Al-Mehdar partner Abdulrahman Hammad and senior associate Samy Elsheikh author the Saudi Arabia chapter of The Mergers & Acquisitions Review, 14th edition, published by Law Business Research.

The chapter provides a deep dive into the relevant laws and regulations relating to the Saudi Arabia’s M&A sphere, and is an important comparative reading for counsel and managers looking acquisitions or divestitures in the Kingdom.

The chapter is available for download here.

Crypto Center: Dubai’s DMCC to Tap into Blockchain’s Potential

Posted on August 5, 2021 - 3:57 pm by perpetual-admin

The latest reports indicate Dubai is poised to venture into the crypto world and tap into the enormous blockchain potential. Through the Dubai Multi Commodities Center (DMCC), the country has created the Crypto Center, a space for companies developing cryptocurrency and blockchain technology.

The Crypto Center comes in the wake of the country’s partnership with Switzerland’s CV Labs, the company spearheading the Swiss-backed Crypto Valley. The Center is expected to form an ecosystem for blockchain, cryptographic, and distributed ledger technology enterprises in the UAE.

What’s cryptocurrency?

Cryptocurrency has exploded onto the scene in recent years, and it’s no wonder that some governments are beginning to embrace it. Despite the common concerns over its effect on the regular currency, many people and businesses across the globe continue to use it.

This digital or virtual currency secured by cryptography is nearly impossible to counterfeit or double-spend because it’s based on blockchain technology. Cryptocurrency derives its name from the encryption techniques used to secure the crypto network, making it immune to central authorities.

Word from DMCC executive director

Ahmad Hamza, the free zone executive at the DMCC, hailed the move terming it “a fantastic new development”. He emphasized that the crypto and blockchain technologies would transform supply chains and global trade immensely, noting that it was perfectly in line with the DMCC’s vision of driving future trade for the UAE.

Hamza expressed hope that the crypto Center will soon fill up with companies looking to scale up their digital currency businesses. However, he fell short of disclosing the number of businesses and entities the DMCC was expecting to draw to the Center.

The DMCC oversees companies and businesses involved in the trade of commodities ranging from pulses to diamonds. It has grown in popularity over the years, receiving up to 2,050 new companies last year alone. This was the highest figure recorded in the last five years for the free zone.

Role of the Crypto Center

The Crypto Center has its work clearly cut out. It will be home to all types of crypto businesses, ranging from companies that issue, list, offer, and trade crypto assets, to those developing blockchain-enabled trading platforms.

Throwing his weight behind the Center, Thani Al Zeyoudi, Minister of State for Foreign Trade, confirmed the central role it will play in boosting the use of digital currencies in the country. He said the Center will support all types of crypto businesses and play home to a comprehensive system for pioneers, innovators, and entrepreneurs in crypto and blockchain technology.

Blockchain is the technology behind cryptocurrencies, such as Bitcoin, and is a digital chain of transactions connected via cryptography, a medium for secure communications on open ledgers. It employs a real-time database with tamper-proof records because every change would create a new record.

The high level of security and integrity of the crypto database makes it quite attractive to businesses and organizations whose activities involve large sums of money, and which they need to handle securely. The UAE wants a piece of this pie and has moved to establish the Crypto Center to tap into this immense business opportunity.

Blockchain in the Middle East

The use of crypto and blockchain spending in the Middle East and Africa has grown tremendously in the last five years, at a rate of more than 70%. In fact, it is expected to hit a whopping $307 million this year, if reports by the US-based International Data Corporation are anything to go by.

Initially, there was reluctance on the part of individuals and governments based on security and economic concerns. The highly confidential and anonymous nature of blockchain transactions may make it possible for criminals to exploit them for money laundering. Economically, it was feared cryptocurrency would destabilize regular currencies.

But with regulations and measures in place, blockchain can be harnessed for legal purposes and used to propel a country’s economy to the next level. Dubai has taken a step in the right direction, establishing a center where all companies and organizations wishing to deal in cryptocurrency can practice their trade in a safe environment.

The benefits of cryptocurrency and blockchain to UAE

The UAE is among the early movers in the Middle East tapping into the great potential of blockchain. Already, the country has embarked on an ambitious plan to switch half of the government transactions to the blockchain platform by the end of this year – in a move dubbed Blockchain Strategy 2021.

The adoption of blockchain is expected to save the country a staggering Dh11 billion in document and transaction costs, up to 77 million work hours, and eliminate the need for a mind-boggling 393 million printed documents a year. The government will channel the massive savings to other important sectors of the economy, and help reduce government spending. This would be crucial in reducing the budget deficits.

It’s also expected that the Crypto Center will, in the next 18 months, outperform many leading blockchain spaces, according to Ralf Glabischnig, founder and board member of CV VC, CV Labs parent company.

Blockchain and cryptocurrency are also likely to spur technology progress in the UAE, attracting lots of interest in the country. Glabischnig said that everyone wants to part of Dubai’s technology journey. This will likely translate into many investors willing to pump money into the project, or other similar areas in the country.

CV VC runs co-working spaces in Zug, Switzerland, and Dubai is home to more than 130 of the leading cryptocurrency and blockchain projects worldwide. Dubai is expected to become a global hotspot for blockchain companies and applications and play a leading role in cryptocurrency innovations. So far, the future burns brightly for the country poised to grow its economy exponentially over the next few years.

Take advantage

Your business can take advantage of the blockchain technology introduced officially into the country through the establishment of the Crypto Center in Dubai. But cryptocurrency and blockchain technology can be quite challenging without proper knowledge of the legal framework. You need to work with professional and experienced lawyers to help you navigate the volatile world of cryptocurrency. Contact HMCO today to start the conversation.

Inside Saudi Arabia’s Plan to Raise $55bn through Privatization

Posted on August 5, 2021 - 3:57 pm by perpetual-admin

Saudi Arabia is planning to raise about $55 billion in the next four years as it embarks on a nascent privatization plan to boost revenue and plug its yawning budget deficit. The move by Crown Prince Mohammed Salman is part of the Saudi government’s plan to pull the country from the oil-addicted, state-dominated economy, and modernize the Kingdom.

A pipeline of 160 projects

According to the finance minister, Mohammed al-Jadaan, Riyadh has settled on a total of 160 projects across 16 sectors and public-private partnerships as major beneficiaries of the privatization program. This plan will go a long way in filling the yawning budget deficit, which has been a significant challenge in Saudi’s plans to upgrade its economy and modernize the country.

As part of the privatization program set to run through to 2025, Riyadh intends to outsource the management and financing of health infrastructure and services to the private sector. The move will also rope in transportation networks, school buildings, water desalination, sewage treatment plans, and airport services.

The government is also targeting the sale of particular assets, including television broadcasting towers, district cooling, and desalination plants, and government-owned hotels. The move is expected to raise the funds needed to drive the economy forward and improve the living standards of the people.

Driving force behind privatization move

Shedding light on the privatization issue, the finance minister stated that it no longer makes economic sense for the central government to run some services and utilities, hence, the need to outsource them to the private sector. This will go a long way to cut down government expenditure and ease the pressure on public finance.

The minister further said that Riyadh expected to raise revenue through the privatization program, and the funds would go into plugging the $79 billion deficit, the equivalent of 12% of its gross domestic product. This would improve state services to the citizens. Mr. Jadaan is hoping to raise $38 billion through asset sales, and another $16.5 billion through public-private cooperation.

The Aramco connection

Talks are already underway for the possible sale of 1% government stake in Saudi Aramco, which listed 1.7% of its shares in 2019. Aramco is the country’s global energy company. Shedding more light on the Aramco connection, the finance minister said Aramco was free to monetize its assets and channel the funds into new investments, but the government would monetize its shares in the company.

However, funds raised through future sales of Aramco shares would go to the Public Investment Fund (PIF), the body spearheading the country’s efforts to diversify its economy, rather than the treasury. PIF itself will remain immune to the privatization efforts because of its role in the growth of the economy.

The beginning

The country’s privation plans have been ongoing for the last three years, beginning with the sale of public flour mills, sports clubs, and a water desalination plant. But it wasn’t as fast as people would have expected, as only five asset sales had been made so far — Saudi Service Medical Center, and four milling companies.

However, the government isn’t expecting much foreign interest in privatizations. A Gulf analyst stated that the initiative would largely attract local businesses because foreign investors were still circumspect over the issue. He attributed the reluctance of foreign investors to the tarnished image of the Crown Prince’s leadership by the international community, citing alleged human rights abuses.

Benefits of privatization

The Saudi government looks forward to leveraging privatization to enhance its economy and plug its budget deficits. Although it seems to be slower than expected, the government hopes to raise a massive $55 billion in the next four years.

Here are some reason pushing the privatization program:

1. Improved efficiency

The public sector is known to perform below par because it usually isn’t under any pressure to perform. Many public industries don’t even worry about competition because they are monopolies. By privatizing sports clubs, the health sector, and some milling companies, the Saudi government is looking forward to bettering services for its people. This is because private companies work for profits, forcing them to provide better goods and services.

2. Way of raising funds internally

The government hopes to raise a whopping $55 billion internally, so it won’t have to worry about foreign dependence. Privatization will help it gather the financial resources needed to plug its budget deficits, instead of having to borrow from external financial firms, as other countries do.

3. Cuts down government expenditure

Privatizing certain sections of the public sector relieves the government of its financial responsibility. Some of these public entities need huge sums of money to run and maintain, but may not fetch enough money in profits. A good example is the management of sports clubs, which the government hopes to sell to the private sector.

4. Fosters economic democracy

The Saudi government hopes to broaden the space for the private sector struggling in a state-dominated economy. There had been numerous complaints from companies crowded out of the market by the PIF. Privatization should be a lasting solution to this challenge. As John Sfakianakis, a Gulf expert based at Cambridge University puts it, the government now wants to include the private sector in economic growth.

5. Creation of jobs

The many Saudis locked out of employment from the public corporation now have something to look forward to as privatization takes shape in the country. The Gulf expert at Cambridge says the government wants to slim down on its business operations, reduce its liabilities, and outsource financial and health services to private entities. This would open up the private sector for more jobs.

You can take advantage of the privatization program

As the privatization move gathers momentum, it’s clear that local businesses stand to gain massively if they position themselves well. As a local businessperson, you need professional and experienced lawyers to help you understand the legal implications of privatization. Such lawyers will also help you interpret the privatization law, which the government will enact in July.

You can ensure your business is in the best position to tap into the privatization move by the government by partnering with the best law firm. If you are looking for the best lawyers, please contact HMCO today to get started.

Saudi Arabia and World Bank Create $100m Fund to Develop Sustainable Tourism

Posted on August 5, 2021 - 3:58 pm by perpetual-admin

The World Bank and Saudi Arabia have formed the first-ever $100 million global fund solely dedicated to sustainable tourism. Here are some insights on the fund and how it might impact international tourism.

Travel and tourism worst hit by the pandemic

The travel and tourism sector was the worst hit after the pandemic struck. The restricted movement to curb the spread of the virus brought the industry to a grinding and painful halt, rendering millions of workers jobless and many companies bankrupt.

International travel within the country dropped by 74% due to the pandemic while global tourism GDP nearly halved in 2020. This translated to nearly $5.5 trillion in losses in the industry globally, according to Princess Haifa bint Mohammed Al-Saud, the assistant tourism minister for executive affairs and strategy.

Steps are now being taken to revive the industry and modify it to live around the virus. Major stakeholders and industry leaders are trying to navigate around this health crisis and bring the tourism industry back on its feet.

The journey to recovery

According to Ahmed Al-Khateeb, Saudi Arabia’s Minister of Tourism, this will be the first and the only global fund dedicated solely to sustainable international tourism growth, and a significant step towards a more inclusive, resilient, and sustainable future for the sector. It will also be an opportunity to create a more responsible approach to tourism that uplifts communities and drives economies while preserving the environment and respecting local cultures.

He said this during the Tourism Recovery Summit 2021 in Riyadh. He further states that the Kingdom of Saudi Arabia is acting on sustainability, inclusivity, and collaborations. These, he says, are the core principles that will be responsible for the recovery of the tourism industry globally.

The minister added that as a new destination, the priority is to protect the country’s rich nature and cultural heritage and to set new standards in sustainability. The Giga projects will combine nature-adventure and cultural attractions in a way that adheres to the highest environmental standards.

Speaking at the same summit, Zurab Pololikashvili, secretary-general of the UN World Tourism Organization (UNWTO) said it has opened a regional office in Riyadh, and it is “a sign of hope for many people.” He noted that Riyadh and the kingdom are among the few countries still investing in tourism in these pandemic days.

Travel is slowly being restored as the vaccine is being rolled out. Governments have started easing up on travel restrictions and setting up precautions such as pre and post-travel testing for tourists. All this is in an effort to contain the spread of the virus while keeping the tourism industry alive. Saudi Arabia, which is the world’s largest oil exporter, is one of the many countries opening up its borders to tourists.

A street-less and car-less city

Neom, a city located in the North of Saudi Arabia, is developing as the first-ever modern city with no streets, cars, and zero carbon emissions. It will solely rely on natural transportation modes. This is an effort by the Kingdom to create a global destination that is powered by clean energy. The project has been dubbed “The Red Sea Project.”

In addition, Neom is set to be a $500 billion modern city with a nature reserve, coral reefs, and heritage spots. It is planned to contain a huge entertainment and sports center named Qiddya, in the capital. Also, the Red Sea Development Project will feature islands off the city’s west coast.

Saudi Arabia opened up to international tourism in September 2019 and has since announced a number of projects to attract visitors. These include a $530 million fund to develop key destinations across the Kingdom. Riyadh aims to raise the contribution of its tourism sector to its GDP from 3 percent to 10 percent, in a bid to modernize its economy and steer it away from oil dependence.

Tree planting initiative

The country also aims to plant 10 billion trees, as a green initiative to protect more than 30% of the Kingdom’s land and enhance its natural resources. During Saudi Arabia’s G20 presidency, the country hosted the first-of-its-kind private sector tourism event in conjunction with major stakeholders of the sector. This was an effort to come up with policies and strategies that will dictate the future of tourism during the pandemic.

Princess Haifa reported that they have changed the language in Saudi Arabia, revealing that they had switched from “jobs in tourism” to “careers in tourism”. During the pandemic, 35,000 jobs were created in the Kingdom at a time when the world was losing jobs in tourism”. Saudi Arabia also saw a 33% increase in money spent in the industry because of focusing on domestic tourism.

The Princess further added that a total of $3.71 billion was spent during the summer of 2020 alone. Saudi Arabia exceeded expectations regarding domestic tourism, despite the United Nations World Tourism Organization, or UNTWO, describing 2020 as the worst year in the history of tourism.

The kingdom restarted international travel on May 17th. At the annual Arabian Travel Market, Fahd Hamidaddin, the CEO of the Saudi Tourism Authority said that this year could be a turning point for the Kingdom’s tourism industry. He said that the fourth quarter of this year is bound to be profitable to them as the countries they are targeting reach a 70% vaccination rate.

Recovery from the pandemic in sight

According to Euromonitor International, a market research firm, Saudi Arabia will have recovered from the impact of the pandemic by 2025. This is due to inbound tourism spending, predicted to reach $25.3 billion by 2025. This impressive prediction is a sure-fire way to increase tourism GDP worldwide and Saudi Arabia has offered to chip in to bail out the tourism industry from the heavy losses suffered in 2020.

Saudi Arabia has pledged to give $100 million to boost sustainable and inclusive tourism all around the globe. This unique project looks like an extension of the strides taken by the kingdom to boost local and international tourism within itself and outside.

Take advantage of this opportunity

If you plan to take advantage of this enormous potential created by the fund, you will need to work with professional and experienced lawyers who are extremely conversant with Saudi law and international occurrences. If you are looking for such lawyers, please contact HMCO today, and get the ball rolling.

Saudi Arabia Dominates Startup Investment Sector in May

Posted on August 5, 2021 - 3:59 pm by perpetual-admin

Figures have revealed that Saudi Arabia dominated the startup investment market in the MENA region in the month of May. During the month, a total of $110 million was realized across 35 deals, according to data from Wamda, an entrepreneurship platform in the region.

According to the figures, the Kingdom of Saudi Arabia raised nearly $47 million across 9 startups, through the Series B funding by Sary, a B2B marketplace connecting wholesalers and small firms.

Venture capital picking in Saudi market

The managing director of Wa’ed, Wassim Basrawi, wasn’t surprised that venture capital was picking up in the Kingdom, adding that the trend had been sustained for several months as the country emerged from the ravages of the COVID-19 pandemic.

Wa’ed also announced venture capital investments in Saudi firms, including drone maker, FalconViz, IR4LAB, the blockchain artificial intelligence company, and the hydroponic technology business, the Red Sea Farms.

Basrawi also indicated that the public sector support for entrepreneurs had increased during the pandemic as many Saudi startups, such as the Red Sea Farms, were starting to attract external investors. This was one of those pointers of increased growth of venture capital investments.

The B2B e-commerce sector raised $37.6 million, raising the most interest throughout the Middle East and North Africa (MENA) region. Financial technology (FinTech) came second with $18.5 million, while logistics raised $10 million. Education technology and tourism came at a distance, raising $6.9 million, and $6 million, respectively.

Hussain Al-Alawi, speaking to Arab News, observed that the region was experiencing increased investment in venture capital and that technology companies were at the forefront, followed by FinTech, med-tech, and agri-tech. Al-Alawi is a member of the board of the Zurich-based mergers and acquisitions firm, millennium Associates, and a Saudi international partner.

He also added that technology was the driving force behind the 70% of company deals across all markets this year. This trend is also true in the Kingdom of Saudi Arabia as the country’s commitment to technology is helping drive the startup culture, and encouraging investment in the sector.

Al-Alawi also acknowledges the input of the Public Investment Fund (PIF) through projects such as NEOM in helping realize Vision 2030. They have inspired startups looking to innovate and disrupt, with support from progressive funds to help local entrepreneurs, and individuals, and institutions.

The role of women in capital investments

Al-Alawi notes Saudi’s young and highly connected population, and the evolution of the sector as prompted by the COVID-19 pandemic, as some major factors contributing to the growth of capital venture investments in the country.

Saudi Arabia seems to be far ahead when it comes to women’s participation in startups. The Kingdom posted the only investment in the women-led startup, the $6 million Gathern backing – a platform similar to Airbnb in Saudi Arabia. The figure is, however, a pale comparison to the massive $100 million posted by their male counterparts in the MENA region.

However, Al-Alawi was quick to point out that gender disparities in investments were a global issue, and were not unique to the MENA region alone. Despite outperforming their male counterparts, women-led startups received a paltry 2.6% of venture capital funding in 2019, as per CrunchBase reports.

But the situation seems to be changing. Saudi Arabia is seeing more women-led startups and businesses. When it comes to successful family businesses, the Kingdom is experiencing an upsurge in the number of females establishing their own companies, especially in e-commerce. However, many of these businesses are self-funded or family-funded instead of seeking venture capital investment.

The latest trends show that a number of women were beginning to look beyond their own businesses in Saudi Arabia, and venturing into potential investment fields in female-led startups. It’s a clear indication of the increasing role of women in the Saudi business world and their participation in new startups that helped the country dominate the startup scene in the MENA region.

Why Saudi is dominating startups in the investment sector

The venture capital in Saudi Arabia has risen to an all-time high of $151.9 million five years into the ambitious Vision 2030. This is a 124% rise from 2018 to 2020 and a massive increase from the pre-Vision rate of $7.9 million in funding.

But most of the growth can be attributed to the government’s effort to empower the entrepreneurship sector and ease foreign direct investment regulations. Foreign companies can now inject funds into the country and boost the performance of the investment sector.

The Saudi government also launched two funds of fund ventures: the Saudi Venture Capital company (SVC) and the Jada fund of funds backed by PIF. At the same time, the Saudi Telecoms Company was on the sidelines to complement the government with a $500 million funds, the largest tech fund in the MENA region.

According to Nabeel Koshak, CEO and board member of SVC, the success of Saudi startups in the diversification of the venture capital that addresses different sectors, geographies, and stages, to ensure they fill the financing gaps for startups across sectors, stages, and regions.

The SVC is also committed to investing $1 billion in venture capital funds and startups. It has so far invested in 17 venture capital firms, as well as 63 startups across different stages and sectors. The Kingdom’s venture capital company has also allocated 10% of its funds to Angel Networks. One condition for SVC for fund managers is that it must allocate some of its funds to Saudi-based companies.

It’s this kind of government backing that has propelled Saudi Arabia to the forefront of venture capital investments in the MENA region. If this trend continues, the Kingdom of Saudi Arabia will continue to dominate startups in the investment sector.

Take advantage

As Saudi Arabia dominates startups in the investment sector, there is great business potential in the Kingdom for individuals and companies. But you need to partner with experienced, professional, and knowledgeable lawyers conversant with Saudi law. They can help you understand and meet the legal requirements for harnessing venture capital and engaging in startups. If you need such lawyers, please contact HMCO today, and get the ball rolling.

Saudi Entertainment and Amusement Sector to Hit $1.17B by 2030

Posted on August 5, 2021 - 5:00 pm by perpetual-admin

A new industry report predicts the Saudi entertainment and amusement sector to hit a massive $1.17 billion by 2030, translating to a staggering 47.65% growth per year. According to a US-based Research and Markets study, this growth compares to just $23.77 million in 2020 alone.

A unique and world-class entertainment hub

According to the US-based report, the Saudi entertainment industry has grown massively, thanks to the concerted effort by the government that has seen the construction of a unique and world-class entertainment hub in the country.

The awe-inspiring entertainment hub features cultural and historical attractions, innovative rides, and mega sporting events. The hub provides the much-needed impetus to get things moving and propel the Saudi entertainment and amusement sector to new heights.

As part of an ambitious plan for economic and social reform, ostensibly to reduce the country’s dependence on oil, Saudi Arabia has embarked on a Vision 2030 project. The project targets the entertainment industry, setting up the country as a popular leisure destination point for locals and foreigners.

Government’s hand in the growth

The Saudi government has played a significant role in the projected growth of the entertainment and amusement sector, establishing the General Authority for Entertainment (GAE) in 2016.

The GAE brought forth massive entertainment investments in the country, the most significant being the Qiddiya project announced a year later, 2017. Work at the site, located just 40 minutes from the Saudi capital, began a year later.

The project expected to cover well over 300 square kilometers of land, will include a Six Flags theme park, Formula One racing track, sports facilities including football stadia and athletes tracks, and development infrastructure. Others include an expansive range of creative and artistic and cultural activities.

One of the major highlights of the amusement park is an enthralling and record-breaking roller coaster appropriately called Falcon Flight. It’s set to be the flagship attraction of the theme park, scheduled to open in 2023, featuring 28 attractions and rides across six themed lands.

Golf legend, Jack Nicklaus, has also ventured into the Qiddiya project, offering to design a golf course in the park. It would be his first golf design project in the Kingdom. Nicklaus made the announcement in February after observing the progress of the project.

Speaking to Arab News, Phillipe Gas, CEO of Qiddiya, sought to shed more light on the project. The CEO stated the Qiddiya project is poised to become the capital of Sports, Art, and Entertainment. He further explained that the Giga project was founded on the need to overarch Saudi Vision 2030.

The Qiddiya CEO also noted that it would be a disruptive destination thrust onto the world stage as the home of the most immersive and innovative experiences on a level never seen before. It will be a celebration of life, a place for families and couples to spend quality time, and create unforgettable memories.

Just last month, Turki bin Abdulmohsen Al-Sheikh, GAE chairman, made public the results of the Ideas for Entertainment initiative. The top 20 ideas had been selected from more than 12,000 proposals submitted for the project.

The top submission dubbed “The Grove” depicted a rich experience featuring an array of activities including musical and theatrical shows, hiking expeditions, and more.

Entertainment is one of the key pillars of Vision 2030, which aims to enhance household expenditure in the sector from 2.9% to 6% by the end of the decade.

The AMC connection

The Saudi entertainment sector received a major boost in December 2020 following AMC Entertainment Holdings’ move to open a sixth movie theater in the country. AMC is the world’s largest movie exhibition company. Saudi Arabia happened to feature in the company’s plans to expand to 50 locations by 2024.

AMC also partnered with the Saudi Entertainment Ventures to set up the Saudi Cinema Co., with the full blessings of the Public Investment Fund (PIF). The Saudi Cinema Co. became a state investment and development cog of the country’s entertainment industry.

The entertainment project has also attracted another overseas player, UAE-based chain VOX Cinemas, who plans to build 600 giant screens across the Kingdom by 2023. This would be part of SR2 billion, an equivalent of $533 million investment.

Home-grown cinema brands have also burst onto the scene, led by MUVI Cinemas, who announced in April a massive SR820 million expansion plans for this year. MUVI plans to grow to 307 screens Kingdom-wide over the next year, and launch 23 new sites in 8 key regions.

Effect of the pandemic

The entertainment and amusement sector in the Saudi Kingdom came to a grinding halt as the anti-coronavirus restrictions came into effect in the first quarter of 2020, crippling the economy for the better part of the year.

The restrictions have begun to lift, and as of May 18, 2021, a return to the entertainment scene is gradually taking shape, albeit with social distancing policies firmly in place, as well as the wearing of face masks.

As the pandemic subsides, and mass vaccination gathers momentum across the Kingdom, it’s just a matter of time before Riyadh explodes onto the global scene as a top destination for fun-seeking enthusiasts.

The pandemic couldn’t have come at a worse time – the entertainment industry had come from a 35-year ban on cinema, which had elapsed in 2018. Some of the world’s leading lights in the cinema industry had begun moving in when the pandemic struck.

Take advantage of this growth

Without a proper and thorough understanding of Saudi and international law, you may not be in a position to tap into the growing entertainment and amusement sector. You need to work with professional and experienced lawyers to take advantage of the growth in this bustling industry. If you are planning to venture into the entertainment industry, please contact HMCO today for the next course of action.

4th Edition of Fintech Law Review

Posted on December 31, 2021 - 1:56 pm by perpetual-admin

Hammad & Al-Mehdar’s partner Suhaib Hammad authored the Saudi Arabia chapter in The Financial Technology Law Review, 4th edition, published by The Law Reviews in April 2021.

This updated review tackles recent mandates by the Saudi Central Bank (SAMA). It also discusses other relevant regulations to the Fintech regime, including general licensing requirements and protection measures.

To read the chapter, please visit the link.

Abu Dhabi Announces Activities Open to Foreign Ownership

Posted on December 31, 2021 - 1:58 pm by perpetual-admin

The Abu Dhabi Department of Economic Development (ADDED) has announced a list of 1,105 registered commercial and industrial activities open to ownership by natural and legal non-citizens, WAM reported. This enables them to fully or partially own commercial companies to practice these activities in Abu Dhabi. The list includes a broad range of activities from manufacturing to equipment rental and photography to running a zoo.

The Council of Ministers decided the list of activities available for foreign ownership according to what would have the most significant strategic impact.

Existing companies have the right to adjust their status, provided they comply with the regulations on activities or other applicable restrictions according to ADDED-adopted procedures. To read more, click here.

Saudi Arabia: Fintech 2021

Posted on December 31, 2021 - 2:03 pm by perpetual-admin

Hammad & Al-Mehdar’s partner Suhaib Hammad authored the Saudi Arabia chapter of the Fintech 2021 guide, published by Global Legal Group in June 2021.

This chapter discusses the Fintech laws and regulations in Saudi Arabia.

To read the chapter, please visit the link.

Saudi Cabinet Authorizes Ministry of Finance to Issue Licenses to STC Bank and Saudi Digital Bank

Posted on December 31, 2021 - 2:06 pm by perpetual-admin