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In June 2015, Saudi Arabia’s stock exchange entered a new era by opening to foreign participation, an event that has one of the most keenly anticipated financial events in the region. Yet this is only the latest step in a longer process of market reform that has seen the exchange evolve from a single-product market to an increasingly diverse investment platform. With a raft of regulatory changes in the pipeline, including alterations to the organisational structure of the exchange and its relationship with the regulator, the coming year promises to be an interesting one for Tadawul’s broadening base of market participants. This chapter includes interviews with Mohammed Al Jadaan, Chairman, Capital Market Authority (CMA); Adel Al Ghamdi, CEO, Saudi Stock Exchange; and John Sfakianakis, Middle East Director, Ashmore Group.

Having posted another year of positive results, Saudi Arabia’s banking sector is positioning itself to take advantage of the government’s expansionist fiscal policy and the large number of projects this has created. In the meantime, opportunities in other areas of the lending landscape are being explored, most notably among the nation’s smaller businesses. An ongoing process of regulatory reform and intense competition continue to present challenges to the Kingdom’s banks, but the underlying stability of the sector means that they can be tackled from a position of strength. This chapter contains interviews with Fahad Al Mubarak, Governor, Saudi Arabia Monetary Agency (SAMA); Bernd van Linder, Managing Director, Saudi Hollandi Bank; and Patrice Couvegnes, Managing Director, Banque Saudi Fransi.

With its sound government finances and trade-friendly policies, Saudi Arabia presents an attractive option for investors. The Kingdom currently benefits from high levels of macroeconomic stability, combined with low debt and a budget that until 2015 had been consistently in comfortable surplus. In June 2015 the country’s stock exchange, Tadawul, was opened to qualified foreign investors for the first time, driving increased participation by institutional investors that is expected to help reduce the exchange’s recent volatility. Meanwhile, the Kingdom is investing heavily in education and vocational training to further enhance its attractiveness to foreign business, and the drive for economic diversification continues apace, with non-oil exports growing faster than oil exports in recent years. This chapter contains interviews with Abdullatif Al Othman, Governor, Saudi Arabian General Investment Authority (SAGIA); and Yoon Sang-Jick, Minister of Trade, Industry and Energy, Republic of Korea.

While hydrocarbons continue to form the bulk of Saudi Arabia’s revenues, the government has placed an increasing emphasis on economic diversification in recent times. Indeed the Kingdom’s economic growth is now being driven primarily by the non-oil sector, which expanded at a rate of 5% in the decade to 2014. Although low oil prices and the government’s commitment to maintaining spending levels mean the country is expected to run a fiscal deficit in 2015, Saudi Arabia’s ample fiscal reserves suggest it is well positioned to ride out the dip over the medium term. In the meantime, diversification drives will continue, with Saudi Arabia’s 10th Development Plan placing renewed emphasis on education and private sector development. Foreign companies are expected to benefit from the roll-out of e-government in public tendering, which authorities hope will make the system more efficient for foreign investors. This chapter contains interviews with Prince Turki bin Saud bin Mohammad Al Saud, President, King Abdulaziz City for Science and Technology (KACST); Mofarrej Al Haqbani, Minister of Labour; and Ibrahim Al Hunaishel, Director-General, Saudi Credit and Savings Bank (SCSB).

Thanks to lower oil prices and improving conditions in its major export markets, Morocco’s trade deficit in 2014 shrank by 6.2% over the previous year and looks set to perform even better in 2015. Levels of foreign direct investment, especially from France, have grown substantially in recent years, boosted by investor incentives and good infrastructure, though they could be higher still if more progress were made on enhancing the ease of doing business and addressing challenges such as corruption. Outward investment has also been on the rise – the average in the 10 years to 2013 was up 12-fold on the previous decade – much of it moving south of the Sahara, where Morocco is emerging as a regional economic power. This chapter contains interviews with Hamid Ben Elafdil, Director-General, Invest in Morocco; and Dominic Jermey, CEO, UK Trade & Investment.