Investment opportunities and challenges in Al Jouf
The Prince Abdulrahman bin Ahmed al Sudairi forum for Saudi studies held its twelfth session at Dar Al Uloom Al Jouf entitled: "investment opportunities and challenges in the Al Jouf region", under the patronage of His Royal Highness Prince Badr bin Sultan bin Abdulaziz, former emir of the Al Jouf region, on Saturday, 16 Rabi al awwal November 24, 2018, the forum was attended by a gathering of economists and investors And interested people from the Al-Jouf region and beyond.
The opening session of the forum began with a speech delivered by Dr. Ziad bin Abdulrahman Al-Sudairi, managing director of the Abdulrahman Al-Sudairi cultural center, thanking His Royal Highness Prince Badr bin Sultan bin Abdulaziz for his patronage of the forum, and welcomed His Royal Highness Prince Abdulaziz bin Fahd bin Turki bin Abdulaziz, Deputy Governor of Al-Jouf region for attending the forum's activities, and for the interest and encouragement; They are making a commendable and commendable effort in seeking to support development in the Al-Jouf area, and following up its projects.
Said Dr. Ziad Al-Sudairi the forum board decided to dedicate the current session to be about the investment opportunities in Al-Jouf and the challenges faced by investors and the proposed solutions to them; investment is a key element in the growth of countries and the advancement of citizens, and their well-being, and it is important to consider what enhances investment, so we initiate it, and what limits it, so we address it with effective corrective initiatives. The forum's symposium will be an opportunity for cross-fertilization of ideas and review of information on investment in the Al Jouf region, the opportunities and challenges facing it, and we hope to benefit from the experiences of the specialized professors participating in the two dialogue sessions in proposing scientific and practical solutions to overcome the expected obstacles and supposed problems facing investment and investors.
Dr. Al Sudairi said that on the occasion of this forum being held at Dar Al Uloom Hall in Al Jouf, I am pleased to talk to you about the initiative to modernize the Dar Al Uloom building, which the center started two years ago, and seeks to complete it by the fiftieth anniversary of the establishment of the house, which aims to modernize the house library building and prepare it to keep pace with contemporary developments in various fields. This is through holding partnerships with the Massachusetts Institute of Technology, MIT, the leading American, and Saudi universities, including Al-Faisal University, Prince Sultan University, Dar Al-Hikma University, and Imam Abdulrahman bin Faisal University. The center has issued an invitation to international architectural offices to apply for the Dar Al Uloom Initiative award, so more than one hundred and fifty contestants from fifty countries applied, and the award committee considered the submitted entries for the initiative, and selected the winners of the first three awards, and the center will work in the next stage to agree with the winner of the first In preparation for its implementation in the foreseeable future, God willing.
He said that we are pleased at this center with the honor of contributing to the service of culture at the national level, through what the center's public libraries provide in both Al-Jouf and Al-Ghat, and what its programs provide to support research and its pulpit activities to achieve what the founder of the center, may God have mercy on him, wanted to serve culture and knowledge.
The word of the forum body
Dr. Abdulrahman Al-Shubaili delivered a speech by the forum's body, and said that this Intellectual Forum meets year after year; in Sakaka Al-Jouf, the headquarters of the Abdulrahman Al-Sudairi Cultural Center, and in Dar Al-Rahmaniyah, its branch in Al-Ghat governorate, and its body investigates what touches the needs of the country from development topics, so that the forum performs its cultural function as a "thinking cell" in addition to its other social tasks.
Dr. Al-Shubaili added that over the years, Al-Jouf, through its development process, has given birth to a rising generation that represents the fruits of development, combining the conscience of loyalty to its surroundings and the responsibility of loyalty to its homeland, a generation that made its way despite the obstacles, so a teacher, a Sharia, a consultant, an engineer, a doctor and an agriculturist came out, and this generation proved Balanced chances of development – the return on investment in human capital is the most important among the types of long-term investment.
Today, with the Al Jouf region receiving a promising era that promises a brighter future, the forum dedicated this twelfth annual session to discussing the prospects of investment opportunities in it, as will be discussed by the forum's axes, and to celebrate this occasion with the bouncing Al Jouf generation by honoring its brilliant symbol Dr. Abdul Wahid al-Hamid.
King Fahd Petroleum and minerals, as secretary of the manpower Council, deputy minister of Labor, and a member of the Shura Council, has realistic efforts in arranging the state of the labor market, regulating its conditions and sectors, and increased his enthusiasm for intellectual production, haunted in particular by the obsession of localization, which was diagnosed by his book "Saudization or the flood" and signed by Dr. Ghazi Al-Gosaibi said that it is"a book that should be read by every citizen who is keen on the future of this country, but those concerned with Labor Affairs should read it more than once". Dr. Abdul Wahid was an academic specializing in economics, and through his knowledge of the components of the investment environment in his region (Al-Jawf), he adopted developmental and cultural issues and demands through the press, seminars, intellectual forums and through working in higher government committees. This is how Dr. Hamid Bogdan is not to blame for his hometown, and we found him a sincere and honest source of ideas for balanced and objective development, and a tireless tributary of creativity and development, and a source interacting with the vision of the homeland and its economic and cultural transformations, our forum today expresses appreciation to him, so the forum board chose Dr. Abdul Wahid al-Hamid to be the The economic sphere at the national level.
Honoring the forum's personality
At the end of the opening ceremony, the personality of this year's forum was honored, His Excellency Dr. His Royal Highness Prince Abdulaziz bin Fahd bin Turki bin Abdulaziz, Deputy Governor of Al-Jouf region, presented him with the Shield of Honor.
Forum seminar
The Director General of the center, Hussein bin Ali Al Khalifa, also delivered a speech welcoming the participants in the Forum seminar, and said that the Al Jouf area is ready for more investments, both in the agricultural and industrial fields, with its attractive investment environment, opportunities, infrastructure and manpower. He added that choosing the investment location for this forum this year supports the trend for more investment and providing the necessary information, data and statistics of interest to serious investors, and we hope that we will all benefit from the dialogue and discussion that will take place at the two sessions of the forum on this area.
The first dialogue episode
The first axis: investment opportunities in Al Jouf area
Speakers : M. Darwish Al-Ghamdi, M. Majid Al-Ruwaili, a. Abdul Latif al-duwaihi, Dr. Faisal Al-Faridi, M. Abdullah Al-jerboa, Dr. The star of the hippocampus.
Session management Dr. Badi's leopard.
Dr. opened. Fahad Al-Badi said that this seminar comes at a time of great transformation in the kingdom under the reign of the custodian of the Two Holy Mosques King Salman and His Highness The Crown Prince and in light of the kingdom's Vision 2030, which marks the beginning of the establishment of a new economic model different from what we are used to in the past. Investment is a cornerstone in achieving the kingdom's vision. In the economic concept, investment is every new addition to the real capital of society and the homeland. In this session, we will talk about new investment opportunities that can be created in the region or implemented in order to achieve sustainable development in accordance with the kingdom's Vision 2030. There is no doubt that the Al-Jouf area has different economic components, whether these components have been exploited or not, we hope that the interlocutors will address this issue and highlight some aspects that may be new investment opportunities.
The first speaker: M. Darwish Al-Ghamdi-Secretary of Al-Jawf region
He recently started by stating that Al-Jouf has investment potential that exceeds most regions in the kingdom in mining industries, especially in agriculture; Al-Jouf is famous for olive cultivation, and water is available in Al-Jouf, while the water problem is experienced by most regions of the kingdom. This represents important opportunities for the Al-Jouf region because it is promising in all investments, and in relation to industries, whether in the agricultural fields or any other industries that depend on water sources and the amount of water. The Al Jouf municipality has provided investment opportunities such as providing plots of land in more than three hundred locations with medium and large areas, suitable for various investment projects.
One of the investment opportunities that I would like to highlight is Douma al-Jandal Lake, which is a suitable environment for investment in the tourism and entertainment fields, and it is expected that you will find a serious investor who can implement an entertainment project in the lake, which forms an outlet for the people of Al-Jouf, and achieves a remarkable economic return. Al-Ghamdi also called for focusing on what contributes to the service of Al-Jouf as an investment in human construction and the development of the place, there are investors seeking to find specialized training centers, you will find support from all sectors, and we are in dire need in Al-Jouf for this direction.
The second speaker: M. Majid Al Ruwaili - chairman of Al Jouf chamber
Said M. The private sector has an important and strategic role, as the kingdom's Vision 2030 relied on it and promised it a strategic partner. All possible opportunities and possibilities should be provided to support him to perform his role in the best way, especially in the field of investment.
The Al-Jouf area as an infrastructure is rich in all potentials, such as highways connecting it to all regions of the kingdom, the presence of two airports in Sakaka and Al-Qurayyat and the recent start of the railway ( SAR), which will push the development and commercial and investment movement in the region. Al-Ruwaili pointed out that the board of directors at Al-Jouf chamber has conducted several economic feasibility studies on some opportunities in the Al-Jouf area, as an agricultural and tourist area, as there are opportunities for food manufacturing in the field of vegetables and fruits, because the Al-Jouf area is the food basket of the kingdom, due to the fact that it is a region famous for the agricultural production of The presence of an annual Olive Festival in Al-Jouf gives the Al-Jouf region an additional advantage over the rest of the kingdom. The region is rich in its minerals (silica) and(clay) and each mineral found in it results in several many industries, as silica is characterized by the glass industry, so there should be a glass factory in the region at a very high level.
The region is rich in the salt industry, but it is still a very primitive industry, it is assumed that there will be large factories or there will be packaging in order to produce for the local market and the world market.
The third speaker:
A. Abdul Latif al-duwaihi
Professor Al-duwaihi recently started asking: how many or what is the ratio of businessmen in Al-Jawf to the number of residents in it What is the ratio of businessmen in Al-Jouf to businessmen in the kingdom Why didn't businessmen from the region stand out at the level of the kingdom
Whatever the answer to these questions, the question remains: are the reasons economic or social and cultural
This is where the importance of conducting in-depth and thorough studies comes in, which is the responsibility of Al Jouf University and research centers, as well as business incubators. The preparation and qualification of human cadres in harmony with Natural Resources is the responsibility of Al Jouf University.
It is a big disadvantage that energy, tourism, agriculture and culture projects in the region should start independently of the studies, programs and incubators of Al-Jouf University.
Al-duwaihi also pointed out the importance of manufacturing and producing an economic identity for the Al-Jawf region, and each of the thirteen regions of the kingdom.
The economic identity must be based on the natural and human resources available and necessary for the region.
He pointed out that the projects announced during the recent visit of the custodian of the Two Holy Mosques to Al-Jouf region should pose a challenge to Al-Jouf University and the university staff in the first place. It is not permissible for the university to wait until mining, tourism, energy or other projects are established, but rather it is permissible to prepare, qualify and empower human resources.in this context, Al-duwaihi believes that it is necessary to find a higher body for investment in the region to pour opportunities and challenges from natural resources and human resources.
The fourth speaker: Dr. Faisal Al-Faridi-faculty member at hail University
Confirmed Dr. The unique fact is that the tourism sector is expected to contribute 11% of GDP, if we look at this sector in the Al-Jawf region and try to imagine the size and demand, it is unclear, due to many factors; but in trade, we always ask what segment are you targeting for the success of your project To the extent that tourism is a promising tributary of the Jouf, this should be accompanied by the development of hotel services in the region, as well as the availability of the transport sector and communications between the Jouf and Riyadh and other important cities.
With regard to investment in the field of olive cultivation, olive oil production and marketing, one should consider the competing production in this area in neighboring Jordan and Tunisia, famous for olive production, as well as the production of Spain and others. Al Jouf has the ability to compete in manufacturing products that can be easily marketed either to restaurants or catering services on local, regional and other airlines due to the availability and quality of production.
Dr. alfredi pointed out that the investment projects will reduce the unemployment rate among workers and graduates in the region, and increase family income in general.
The fifth speaker:
M. Abdullah the jerboa
Ministry of economy and planning
M spoke. Fifty years ago, he focused on planning the sector and the kingdom was following the principle of five-year plans, and this planning focuses on the sector because it was planning for government agencies the regional dimension. Then the five-year development plans were discontinued and the Ministry of economy and planning no longer exercises the planning role in its previous form.
The ministry has been assigned to represent in the regional councils, which is a new assignment, the ministry is assigned to the membership of development bodies in the Kingdom and is a member of all administrative councils and bodies in the kingdom. The ministry is a member of other programs at the regional level.
Recently, the ministry has started two important studies at the level of the regions, the first is to study the comparative advantages of the regions, the second is to study the development priorities in cooperation with the relevant government and private entities in order to provide a clear vision in all economic axes, investment, tourism and mining, and there is a tendency to have an identity for the region, this identity does not mean that not all services are available in the region, but we focus on this advantage These border areas have a competitive advantage that differs from some areas, as they may be free economic zones, and the ministry will soon, God willing, after the completion of these studies, have a clear vision in this area.
I will focus my intervention on two aspects: the first side is the public investment in the Al-Jouf area, and the second side is the role of the University and what it should offer of investment opportunities. With regard to public investment in the Al-Jouf region, there are two parts: the first is renewable, clean, alternative or green energy, all these are labels for the new energy that the world has begun to rely on and completely abandoned dependence on traditional energy sources such as oil and gas, which is one of the most important components of the kingdom's Vision 2030.
The sixth Speaker: Dr. Najm al Hosseini-vice chancellor of Al Jouf University for graduate studies and scientific research
The kingdom announced that it will produce جي gigawatts by 2030 of solar energy, we are abundant in the Kingdom and its north in particular with a huge amount of sunlight, so the option of investing in solar energy is an important option and the Al-Jouf area can be a competitive area in this aspect. One of the things that Clean Energy focuses on (wind energy), you know that the Netherlands now relies almost entirely on wind energy, in whole cities in the Netherlands ninety percent of the city's energy is entirely from the wind, and then if it comes, we say, North Wind and we do not take advantage of it, and this wind may be an alternative and powerful source of energy.
The second point is Silicon, this sand that you see has Semi-Transparent granules, these cheap granules will change the face of the world and this Silicon located in California, on which Apple, Microsoft and Hubei were built, these companies that even changed our daily lifestyle were based on Silicon, of which we have very large quantities in this region, and this material I think is A base and head option used in solar cells, in small electronic parts and in many industries.
The first is that we have vast lands at the University on the road between Dumat Al-Jandal and Sakaka, and very close to the airport, seven minutes away from the airport, these lands are available for investment and we do not have investors.
Also, our Olive Research Center has a lot of research in cooperation with the University of Khain, we found in many researches that olive residues can make concrete concrete ten times harder and stronger, imagine ten times if we add olive residues to this concrete that is used in construction.
Second panel discussion
The second axis: investment challenges and solutions in the Al-Jouf region
Speakers : Dr. Hamdan Al-Samrin, Dr. Abdullah Al-Khalaf, M. Mohamed Assid El sharary, a. Ward al-Hathloul, A. A conscientious mind.
Session management : Dr. Abdul Wahid al-Hamid.
Dr. began. Even in international models and examples, we have experiences that we can observe and learn from; for example, there are countries that have all the potential to make them economically developed countries because they have investment opportunities due to the multiplicity of Natural Resources in them, but they have not achieved significant economic growth On the other hand, there are countries that lack natural resources but have been able to progress because they have addressed the problems and challenges they face.
Added Dr. In this session, we expect the speakers to review the challenges facing the investment opportunities in Al Jouf and what insights they may have regarding possible solutions to these challenges. I don't want to pre-empt you in mentioning the challenges, but - at least in theory-we know that one of the most prominent challenges that comes to mind is the weakness of domestic demand due to the low population density; which means the local market is tight, and this is a challenge, but the solution exists, which is export. Also there is always the problem of financing for investors. Perhaps one of the most prominent challenges that the Brotherhood will probably address is the scarcity of information and statistics about the economy of Al-Jouf, always when a researcher, scholar, or even an ordinary writer tries to write about the economy of Al-Jouf, he faces either the lack of vital important information or it is little information, and economic information when it becomes obsolete weakens the fact of its value and importance.
The first speaker: Dr. Hamdan Al-Samrin-chairman of the Saudi-Jordanian Business Council, former chairman of the Al-Jouf Chamber of Commerce, and member of the Al-Jouf Regional Council
Said Dr. There are two big challenges for the investor: the first is the population. Any investment is naturally aimed at consumers, without them there can be no investment. There is no doubt that the investor will not come to a region where consumption is minimal, the second challenge and I consider it a hindrance to investment in the Al - Jouf region, according to the services report issued by the General Authority for statistics-it is one of the poorest regions in the volume of services provided to citizens, whether for consumers or for businessmen and others. The Industrial Cities Authority has (34) industrial cities in the kingdom, distributed over 12 administrative regions in the Kingdom, Al-Jouf region is the only one that does not have an industrial city. The first question the investor asks Is Is there an industrial city in Al-Jouf Once there was an industrial city, services were found, and there was more economic mobility, transportation, and the necessary logistics services.
Added Dr. We believe that the region needs to have an investment council in the region. There are efforts by the chamber, the secretariat and some parties, but they do not have a business umbrella that brings them together in one place. The Al-Jouf area may also be given comparative advantages for financing, and fees to stimulate investment in it.
The second speaker: Dr. Abdullah Al Khalaf-consultant in the emirate of Al Jouf region
Dr. pointed out. Due to the existence of procedural, organizational and legislative challenges and obstacles. The problem is Behavioral in Origin, since we have existing opportunities, we should ask ourselves what we have done as individuals, officials and employees of the region to overcome the problems and challenges facing us. The most important thing we can provide to investors is to provide information, data and statistics, where are the necessary studies that we have provided to investors
So, our man is deficient, let's face the problem at its root and not look at the problem from the investor. In this particular region, we have a problem with the administrative culture regarding the government employee, when you visit any government agency, you feel like a stranger; of course, it is not the solution to look for someone you know or who knows so that you can get a service that is your right. The culture of the government job should be developed, and the role of a government employee in providing the service to its due upon request, without complication or procrastination, so that things and regular procedures go smoothly and pleasantly for everyone, and investment needs to be smooth in the procedures and escape from the complexity and long routine that hinders his work and delays his interests.
The third speaker:
M. Mohammed Asaid Al Sharari
General manager of engineering consulting office
M. pointed out. The main reasons for the existence of infrastructure challenges are the lack of infrastructure provision by the state for the invested lands; and legal and legislative challenges. In the current situation, the judicial system is unable to resolve some disputes, especially technical ones, due to the lack of specialists with experience in quickly resolving those technical issues, and most of the investment laws are outdated and derived from other less developed countries; there are challenges in the absence of accurate data and information on the appropriate economic and investment conditions; and organizational and administrative challenges Through the bodies supervising the investment licenses and the overlap of competencies among them, and the multiplicity of decision-making centers that the investor deals with, which puts him in confusion and anxiety and destabilizes his confidence in the desire to invest. There is a weakness in the local market in the region, due to the low level of per capita income and the relatively small population of the rest of the regions, which leads to a shortage of absorption capacity of the market, and these can be solved by exporting, as mentioned by colleagues.
The fourth speaker: A. Ward al Hathloul-consultant in the emirate of Al Jouf region،
Deputy secretary of the District Council
Said A. Al-Hathloul pointed out that there are obstacles and operational challenges, including the lack of specialized project managers in the projects implemented in the Al-Jouf area. There are some challenges facing the sector, such as the lack of financial planning, which hinders the investment process, because the reuse of capital or spending it on the development of the facility hinders its activity, and even many of the revenues or values of contracts implemented in the region are spent on other aspects of the establishment's activities. There are some shortcomings or weaknesses in communicating with investors from outside the region.
He pointed a. Al-Hathloul pointed out that some investors who come from outside Al-Jouf deal with projects with the perspective of a contractor who wants to accomplish a specific work, without there being any developmental economic returns for the Al-Jouf community, such as benefiting from the labor of the people of the region; with regard to festivals such as: Olive Festival, and Dates Festival, it is assumed that they: The stage of enhancing production, the stage of the manufacturing process, and this stage we have come a long way in, but we have not reached the manufacturing stage yet, but there is another stage that depends on this stage, which is the process of marketing outside the region and finding external outlets for sale, there are also commercial and industrial loans, which are spent in It needs follow-up from the official authorities.
The fifth speaker: A. A conscientious mind
The conscientious professor asked at a recent start: are we an agricultural country I don't think I can answer this question; I have communicated with citizens, with people working in trade, with government agencies. It seems that-despite the abundance of water-we are not good at farming, we love farming, but we lack professional methodology in farming.According to my information obtained from reliable sources, there are 2,500 Farms – other than farms in basseita and villages – in the region there are 100 farms whose owners can spend on their farm from the production of the farms themselves, that is, % ٤ only those who pay the salaries of workers and farm expenses from production, the rest from other sources or from the pockets of the owners, and this is a big problem.
He said that during his attempt to communicate with the official authorities related to statistical information, unfortunately, he found little response, and this is a negative indicator in front of the seekers of information and data necessary for the survey and the work of a study related to the investment aspect in any field, and it is known that statistical data is a cornerstone in the planning of any investment project in the region.
He pointed out that another problem facing farm owners is their need for seasonal labor, not throughout the year, and here government agencies must cooperate to recruit seasonal labor without complexity, especially that farm owners do not need this labor throughout the year and do not have the possibility to afford their salaries throughout the year, a solution should be found to provide seasonal labor to farmers under certain conditions.
Professor Al-Damiri added that he believes that individual work with simple capabilities with targeting only the local market and excluding the idea of export and the absence of Accounting Control and documentation of production problems are the most important obstacles in this large investment sector.
Interventions and recommendations
The seminar witnessed a dialogue that included questions and interventions from the attendees, who addressed a number of issues, including that the media has not marketed the region economically, as it is necessary to highlight the investment potential of Al-Jouf and market it in line with the opportunities in it. One of the interventions also pointed out the importance of activating the role of Al-Jouf University in the implementation of the business incubators program, as most universities in large cities have established business incubators, and business incubators will provide real job opportunities for young people and girls in Al-Jouf, from which larger and effective projects will develop for the community. In her intervention, one of the sisters demanded that the training courses and workshops dedicated to Al-Jouf girls be directed towards generating new investment opportunities, to help them create real opportunities, instead of continuing to focus on capacity development and attention to the environment and the home. Another intervention pointed out that the government bureaucracy is still hindering investment, for example, a lot of work has been done on Douma al-Jandal lake for more than thirty years and no one has decided on this lake, and this lake can be built on unique investment opportunities, but we have not yet found anyone to invest in it.
Among the recommendations proposed by the participants in the symposium were: the establishment of an investment council in Al-Jouf, headed by the Emir of the region and the membership of relevant authorities and businessmen, the establishment of an industrial city to encourage investment, the development of an economic identity for the Al-Jouf region highlighting natural and human resources and developing a strategy for investing those resources, and the implementation of field studies studying economic aspects in the region. The participants also called for the expansion of manufacturing products based on agricultural inputs, and the establishment of specialized facilities in providing various services to farmers and agricultural companies, including the provision of seeds, agricultural pest control, equipment rental, and marketing agricultural products inside and outside the kingdom; as well as providing financing channels to encourage investors in Al-Jawf; in addition to the implementation of awareness campaigns at the level of government agencies working in Al-Jawf, The importance of encouraging investment and dealing positively with investors; working to market the Al-Jouf region for tourism and offer tourism investment opportunities in it, and establishing private tourism companies to market the region for tourism, and establishing an entertainment city in Al-Jouf; and establishing A free city on the land border of the Al-Jouf region.
English 
Arabic