3rd March, 2010 69

REPORT OF THE VISIT OF THE RT. HON THE LORD MAYOR OF THE CITY OF LONDON

(ALDERMAN NICHOLAS ANSTEE) TO BAHRAIN AND SAUDI ARABIA

Tuesday 16th February – Wednesday 24th February 2010 1. This was the Lord Mayor‟s second visit to the Gulf this year and follows the one made by Alderman Ian Luder to Saudi Arabia in February 2009 and by Alderman Sir David Lewis to Bahrain in 2008. Since then, much has happened to the Financial Services Sector, globally, regionally, and within the UK. The Gulf remains relatively unaffected by the crisis due mainly to its indispensible energy sector. Countries continue to take remedial action as a result of the global consequences but, as was seen in Bahrain and Saudi Arabia, sensible preventative measures were already in place and ensured that the damage was less than elsewhere in the Gulf and in other regions. These measures, and others currently being considered globally, were at the heart of many of the Lord Mayor‟s discussions. 2. To the many who asked, the Lord Mayor explained the on-going effects of the global downturn on the City and more broadly the UK financial sector. He did not seek to minimise the problems or the mistakes the City had made; rather, he emphasised that everything possible was being done to stabilise markets and resume normal business. The UK had strength in depth and the City still played a pivotal role. Regulation would need to be reformed and, within the UK, the process had started. In an ideal world these would need to be global; but in today‟s climate it was recognised that reform would vary from country to country leading to a degree of arbitrage, a point which resonated with all those that he met. Interlocutors were well briefed on the causes of the crisis. They had had a year to see how countries and regions had reacted to the vagaries of the markets and the efforts of the G20 and others to improve the structures that currently underwrite business in the Financial Services Sector. As a result, the discussions were generally more focussed and worthwhile than in the past. 3. A key factor when engaged in any business in the Gulf or other Arabic countries was to recognise the cultural importance of regular meetings. The private sector knows this well and those who adhere to the practice, more often than not, have long and successful partnerships. Those in the public sector, who mimic the private sector in demanding instantaneous results from infrequent visits, effective as it might be elsewhere, will be disappointed. It is important, therefore, not to underrate the value of the Lord Mayor visiting these countries on a regular basis and accepting that outcomes for those who accompany him may take longer to bear fruit – particularly if an expected outcome is delayed or postponed. The value of these visits is as much in the continuum of „The Office‟ calling on heads of state, senior ministers, and key businessmen as it is in the occasional breakthrough for business and professional bodies during one of the visits. 4. Follow-up action is summarised at paragraph 50. The Aims and Objectives of the visit are at Annex A. A list of those who accompanied the Lord Mayor as part of his Business Delegation is at Annex B and the detailed programme is at Annex C. Bahrain (16 – 19 Feb) 5. In a programme that benefitted from the Ambassador‟s request to spend two rather than one day in country, the Lord Mayor called on the King, Crown Prince, Prime Minister, Minister of Finance, Foreign Minister (the last London-based Ambassador) and the Governor of the Central Bank. He and the Business Delegation were extensively briefed by the CEO of the Bahrain Economic Development Board, participated in the launch of the Thompson Reuters Islamic Finance Gateway, met the CEOs of the Bahrain Financial Exchange and Mumtalakat (the State owned holding company (36 entities) and Sovereign Wealth Fund (SWF)) who would shortly invest in PE through London (probably 2011), and called on the Bahrain University where he addressed students and faculty. He opened and co-chaired (with Mr Kahlid Zayani) a Forum specifically convened for the business delegation and Bahraini counterparts to consider avenues for co-operation in Islamic Finance and Financial Services ETQ. He was also Mr Zayani‟s guest not only at a private Dinner, where he met a number of prominent businessmen, but also at the Bahrain Britain Business Forum (BBBF) Dinner on his last night. The Ambassador kindly hosted a large reception that included senior government officials and a

70 3rd March, 2010

small „Bankers Lunch‟ where the Lord Mayor was able to get a more focussed view from MDs and CEOs. Friday was a down day before crossing the Causeway into Saudi Arabia, so the Lord Mayor took part in the Bahrain Marathon completing half of it in preparation for the London one. Follow-up Action - the Lord Mayor invited the Foreign Minister to the Easter Banquet and Governor of Central Bank to the Annual Bankers‟ Dinner both at Mansion House.

Political & Economic Background

6. Bahrain has come through the last 18 months remarkably well with few bail-outs in the financial services sector. The price of oil has eased the pressure on public finances and the Government continues to drive forward economic reform as part of a credible 21 year strategy. Despite being dwarfed by some of its neighbours Bahrain is likely to remain a significant player in finance and is seeking to establish niche markets rather than emulate other financial centres. It enjoys a number of advantages: proximity to Saudi, lower costs, a relatively skilled local workforce that actually does work and a highly respected regulator. But in themselves these are not enough and so Bahrain is focussing on insurance, where the industry is 60 years old, as well with diverse, capital markets, and Islamic finance. It has more licensed Sharia-compliant institutions than any other Gulf state, an unmatched concentration of Sharia compliance experts, and it hosts one of the two global bodies that set standards in Islamic finance, Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

7. In 2009 the Government, through the Bahrain Economic Development Board (BEDB) published Vision 2030, outlining the ambitious but achievable social and economic future for the country. the BEDB is chaired by the strategically-minded and immensely able Crown Prince, HRH Prince Salman Al Khalifa, who recognises that there are a number of challenges facing the country: A growing population that would result in more Bahrainis entering the job market; dependence on a bloated public sector employment for nationals that is no longer sustainable; a shortage of high-quality, private-sector jobs, despite the demand for more and greater innovation; and depleting oil reserves that would strain future government finances. BEDB‟s three-pronged approach included: developing an economic growth strategy that would define future economic reforms; enhancing the business environment through the reform of specific economically important sectors; and promoting Bahrain globally to attract investors to participate in the economy. Follow-up action - Lord Mayor would invite the Crown Prince and the Governor of the Central Bank to the Bankers‟ Dinner at Mansion House.

8. Although Bahrain‟s economy is relatively small, its diversity and openness continues to present a number of opportunities for British exporters. It relies heavily on oil and gas, but these resources are dwindling, forcing the need to diversify into other sectors, and to look at developing non-oil government revenue e.g. value-added tax. The Bahrainis have successfully built up sectors in tourism, metals, transport and finance. In 2008 GDP was US$26.9bn; growth: 6.4%; and per capita: US$37,300. Petroleum production and processing accounted for about 60% of export receipts, 70% of government revenues, and circa 12% of GDP, exclusive of allied industries. Aluminium was Bahrain‟s second major export after oil and gas. With its highly developed communication and transport facilities, Bahrain remained home to numerous multinational firms with business in the Gulf region – notably in the North. Financial and insurance services contribute over 25% of GDP.

9. Bahrain is a major trading hub and financial centre in the Middle East and is one of the UK‟s smallest export markets in the Gulf countries. UK exports to Bahrain in 2008 increased by 28% to £278 million from £217 million in 2007. Not surprisingly, in early 2009, exports to Bahrain were down 14% year on year as were imports. Nevertheless, Bahrain‟s diversity and openness continue to present opportunities for exporters and these figures should improve through 2010. The principal sectors for UK businesses are: Financial and professional services; Airport Development and Logistics; Education and Skills.

10. The advantages for businesses wishing to base themselves in Bahrain are considerable: No corporate income tax; No personal income tax; No tax on capital gains and no withholding tax. There are no restrictions on repatriation of capital, profits or dividends; there are few indirect taxes and companies are allowed 100% foreign ownership.

Education, Training & Qualifications

11. As part of Bahrain‟s 2030 vision, the government aims to double the income of every Bahraini worker. 50% of the population is under the age of 21 and the Government is

3rd March, 2010 71

implementing an ambitious Labour Market Reform Plan with the help of Tamkeen. With a total accumulated funds and liabilities of around £5.7Mn (2008), the latter‟s role is to create a pool of talented Bahraini competencies that will improve policies and standards leading to growth in a number of enterprises. This will be achieved primarily through investing in human capital and provides the UK‟ professional institutions with a plethora of opportunities in which the Bahraini‟s are eager to participate. CIMA, ACCA, CISI and the CII are already present in Bahrain but as a result of the BBBF meeting attended by the Lord Mayor, further opportunities have been identified for all these bodies and Ernst & Young.

12. Bahrain approached the City of London University 2 years ago re a potential link up and follow-up with Cass Business School is expected from this visit. Strutt and Parker commented on the need for improved property valuation training, particularly with regard to the disparity between domestic and international standards. The CII would be providing further training for the CBB as a result of a new 2009 regulation requiring any insurance agent to have CII accreditation. The CISI, who already work with regulators in UAE, Qatar & KSA to develop qualifications relating to their local rulebooks, would be looking to do the same with the CBB. Separate from the BBF discussions, but relevant to ETQ, is the fact that the Bahrain Institute for Banking & Finance (BIBF) is looking to set up an Actuaries Studies qualification. Follow-up action - As a result of the BBBF meeting and others relating to ETQ, it was agreed that:

UKTI would support the Islamic Finance Trade Body and provide advice on the Terms of Reference for the Bahrain-UK Islamic Finance Working Group.

Bahrain-UK IFWG and other relevant bodies would promote Islamic Finance Education. The CBB &

CISI would continue their discussions on qualifications.

UKT&I would work with Ernst & Young on ETQ and ancillary services and on inJAz1, seeking possible

avenues for co-operation through the provision of executive and management development programmes.

Post would ask Al Salam Rep for a summary of the tax regime related to Islamic financial investment in UK property, feeding concerns through UKTI FSG to HMRC.

Mansion House would link Cass Business School with Bahraini contacts, though the Embassy in Bahrain. Afternote: CASS subsequently met BIBF, the CBB, and Ernst & Young.

UKTI would contact the Institute of Actuaries.

13. The Bahrain Institute of Business and Finance (BIBF) was currently working on a number of initiatives with the UK to improve educational policy in a number of Financial Services roles (IFAs, Actuaries, Accountancy). The Chartered Institute of Securities and Investment (CISI) was negotiating with the CBB to develop a qualification based on the local Rulebook Regulations. To date, CBB‟s position has been that Bahrain has a lesser need for a local qualification because it has been established as a financial centre for longer.

Islamic Finance

14. As the regional centre for Islamic Finance, Bahrain is experiencing unprecedented growth in Islamic Banking, Takaful and Sukuk issuance. AAOIFI (Accounting and Auditing Organisation for Islamic Financial Institutions) is based in Bahrain and is responsible for moving forward standardisation of Sharia rules and for setting compliance standards to institutions that wish to gain access to the Islamic Finance market. Bahrain works closely with the Islamic Finance Council UK (IFC), a not-for-profit organisation. The IFC Scholar Professional Development Programme, developed by the IFC, and assisted by CISI, provides relevant and structured teaching on conventional markets. The London based programmes are exclusively tailored for Sharia scholars and those involved with the Sharia assurance process.

15. In parallel with this, the CISI and the London-based Gatehouse Bank have established

1 inJAz Bahrain, a member of the worldwide organization ‘Junior Achievement’, provides young people with a business and economic education so they will have the right knowledge, skills, tools and hands-on experience when seeking employment.

72 3rd March, 2010

up a UK Islamic Finance Secretariat. Their aim would be to develop a new body, collaborative in nature, to build on the success of the original UKTI sub group promoting the UK as a global gateway for Islamic Finance. The company would be limited by guarantee with corporate governance based on an executive board advised by the wide range of stakeholders involved in the UKTI work. It is anticipated that the four working groups covering law, accounting, banking and Education, Training and Qualifications (ETQ) will continue, with a significant focus on ETQ. The four working groups would play significant roles in the developing strategy alongside the executive board. The objectives would be to:

Co-ordinate and promote the development of Islamic finance in the UK.

Act as the primary contact point for UK Government bodies, including UKTI, HM Treasury (HMT), FSA and others.

Consider the future development and sustainability of the Secretariat.

16. It was against this background that the CEO of Gatehouse Bank, Richard Thomas, briefed those present at the BBBF meeting on the state of Islamic Finance within the UK. A number of issues were discussed including: Standardisation of Islamic Treasury and Capital Markets instruments; changes to regulatory regimes and the global impact on IFS; asset management and liability management; the management of risk in terms of: credit, markets, operations, legal, Sharia; and the UKIFS Secretariat in terms of: internships and professional exchanges, common standards of ETQ, an MOU, and the Sukuk Summit in London

8th June 2010. Follow-up action - in summing up the discussions it was agreed

that:

More could be done to promote the collaboration that already exists. More staff exchange programmes and internships between Bahraini and UK banks would be encouraged. UKTI would support the Islamic Finance Trade Body and provide advice on the ToR for the establishment of a Bahrain-UK Islamic Finance Working Group (IFWG). The Bahrain-UK IFWG and other relevant bodies would promote IF Education. The CBB would initiate contact with IFC and other related UK organisations to set out a group to standardise Sharia finance. Mansion House would provide the venue for the launch of UKIFS 31 Mar 10.

Separately, but in parallel, Post would advise Mansion House when Mr Mohammed Al Chaar, the Head of AAOIFI would be in London in order for him to lunch with the Lord Mayor.

Financial Services

17. Bahrain is one of the world‟s leading international finance centres, with the FS sector accounting for over 25% of Bahrain‟s GDP (2009). The Kingdom is viewed as one of the best regulated Financial Services Centre in the Gulf and has led the Middle East in a range of sectors from banking to asset management to Islamic Finance. Bahrain has arguably remained the most reliable and resilient financial centre in the Gulf for nearly 40 years at a time when many of the world‟s financial services sectors have been shrinking. Some of the key opportunities in Bahrain‟s financial and professional services sector have included; Islamic Finance, ETQ, Insurance/Re-insurance, Asset & Wealth Management and Capital Markets, as well as legal, consultancy and business services related to the financial sector. FS employment has risen by 68.5% in the last three years, and in 2008 more than 1,700 new jobs were created, lifting total employment in the sector to approximately 14,000. As of December 2009 there were 412 licensed financial institutions in Bahrain; 141 banks, 32 retail banks, 78 wholesale banks and 31 representative offices. Assets held by the banking sector in Bahrain total $220.9bn.

18. On the surface Bahrain has weathered the financial crisis well. With a more stringent regulatory regime than other Gulf countries (the CBB was set up by ex BoE staff in the early 70s) it entered the crisis from a position of relative strength. Islamic Finance is a key element of Bahrain‟s financial services and because their Sharia compliant banks had not dealt in risky derivatives they were shielded, to a degree, from the worst effects of the crisis. Nevertheless, their asset values, biased towards property, had suffered and the credit squeeze

3rd March, 2010 73

affected them as much as the conventional sector. Throughout 2009 it became apparent that many of the Islamic banks were over leveraged and some are now in trouble. The objective for many this year was survival. While there have been no declared bail outs in Bahrain two conventional banks, Gulf Investment Bank (GIB) and The Arab Banking Corporation (ABC) are both said to have issued bonds in 2009 which by pre-agreement were immediately all bought by the Saudi and Libyan Governments, who are their major shareholders.

19. Two small banks, Awal and TIBC, went into administration when their Saudi parent companies, the Saad Group and Ahmed Al Ghosaibi Brothers, collapsed in May. The CBB admitted not exercising adequate oversight but believe they have already taken the necessary remedial steps. This particular incident has had major repercussions throughout the Gulf and a number of major Western Banks have been caught up in the affair. During his discussions with central bank governors and senior ministers, the Lord Mayor asked for fair treatment and that any proceedings against individuals should be dealt with as quickly as possible. As with the problems facing a number of banks in Dubai, he also asked that any outcome should not necessarily favour domestic banks over foreign ones.

Insurance/Reinsurance 20. Bahrain is a regional hub for the insurance industry and has some 173 insurance companies, both conventional and Islamic institutions serving both onshore and offshore markets. Bahrain is home to the Arab Insurance Group (ARIG) which is the representative body for the insurance industry in the Gulf. There is strong growth potential for the Insurance market in motor, personal/family, and the Islamic Insurance market. Hardy Underwriting, the Lloyd‟s of London insurer, has announced a JV with ARIG to write reinsurance in the MENA region. Capital Markets 21. The Bahrain Stock Exchange (BSE) established in 1989 is small in comparison with other GCC states. However the Bahrain Financial Exchange (BFX), located in Bahrain Financial Harbour and launching in Q1 2010, will be the first multi asset class exchange in the Middle East region and will be internationally accessible to trade cash instruments, derivatives, structured products and Sharia-compliant financial instruments. Market Access 22. Foreign companies could expect 100% business ownership and an absence of any income or corporate taxes in all industries except oil. There were no restrictions on repatriation of capital, profits, royalties and dividends. The Bahrain Investor‟s Centre, a one stop shop for foreign investors, simplified the process of setting businesses. Investors could get centralised advice on starting up a business and completing all the required procedures. 23. Bilateral trade and economic agreements existed with 43 countries, including the UK, China, France, India and Singapore, creating a huge market for goods and services. Bahrain was also the first Gulf country to put into force a Free Trade Agreement with the United States. To date, Bahrain has the lowest rate of inflation of the Gulf States at 3.5%. Together with low taxes and lowest operating costs for businesses in the Gulf, this made it an attractive location for regional headquarters. Furthermore, over the next four years, Tamkeen were investing US$75m to provide over 11,000 Bahraini nationals with sector-specific skills training. Bahrain‟s Government had introduced Education reforms that would continue to improve the quality of education and skills in line with the requirements of the private sector, adopting best practice from some of the world‟s most successful educational models. Monetary Union 24. The single currency issue was raised on a number of occasions but it was the Governor of the Central Bank who provided the most informed brief. The concept was still „on the table‟ although Oman and the UAE had recently opted out. Nevertheless, the technical committees still met. The Gulf regulatory regimes would have to agree a framework and that could prove difficult in the short time; but without one, there would be room for arbitrage. As FS was Bahrain‟s

74 3rd March, 2010

largest sector, the country had to be committed to the concept and once on the road there would be no U turn. Much work still needed to be done and the technical committee has made it clear that it cannot move ahead before absorbing all the lessons associated with it – noting the EU‟s successful launch but noting too the current quandary regarding Greece. The building blocks had to be seen to work. The newly formed „Monetary Council would meet in March to agree a possible timetable. The price of oil would underpin al discussions and that was tied to the US$.

Saudi Arabia (19 – 23 Feb)

25. Visits to Saudi Arabia have become more frequent as the Gulf gains in prominence and as the need for massive infrastructure development has become apparent. This visit followed ones by the Duke of York and Lord Davies.

26. The world financial crisis has re-invigorated the UK‟s interest in the Saudi market. The banking sector had been tightly regulated and as a result there were few exposures to toxic debt. The Kingdom had benefited from low debt levels and record budgets as a result of higher oil prices. The King has guaranteed a $US 450 billion spend on infrastructure projects over five years effectively creating one of the largest global stimulus packages. Saudi Arabia became one of only nine priority markets under the Fiscal Compass programme. As with other global markets, finance was more difficult to secure and the scale of one major fraud involving Saad and the Al Gossaibi houses had dented confidence. Deposits in 2008 had not been as high as banks would have liked and as they could only loan 85% of deposits there have been some blockages. SAMA had taken a number of measures to increase liquidity; lowering the central bank deposit requirements, cutting interest rates, liberalising exchange mechanisms and capping Treasury Bills. This had a beneficial effect but was insufficient to return the money flow to pre 2008 levels. In December 2005 Saudi Arabia acceded to the WTO, committing itself to further liberalisation and the creation of a more transparent and predictable environment for trade and foreign investment. The Saudi Arabia General Investment Agency (SAGIA) had taken the lead in encouraging foreign investment and in 2009 Saudi Arabia achieved 13

th position in the World Bank‟s „Ease of Doing Business‟ index.

27. The Saudi population was one of the fastest growing in the world with over 3% p.a. growth and 60% of Saudis under the age of 20. The population was forecast to double by 2050 which would require massive investment – $US200bn in power and water alone by 2020. There were more investment opportunities in KSA than at any previous time as the country sought to use the oil card to diversify, secure its infrastructure development and provide jobs for the next generation. Some of the major investment opportunities included:

Over the next 10 years, $US100 billion worth of projects in the oil, gas and petrochemical sectors. The focus was on increased production capability in oil and gas, increased refining capacity and expansion of the downstream sector. However given the availability of finance and the drop in commodity prices a number of projects have stalled and/or been restructured or refinanced.

Major rail projects have been awarded to prime contractors to link major centres of population, provide for the new economic cities and to enable the transportation of bauxite and phosphates from the expanding mining sector. The Saudi Land Bridge project will link Jeddah with Riyadh providing a 950 km link between the east and west coasts. There will also be spur lines between Dammam and Jubail and a KAEC-Mecca-Medina-Jeddah high-speed line together with a Jeddah-Yanbu link. There will be a rail link from mining sites in the North West to the East coast. Mass urban transit systems are planned for four major cities.

The KSA currently has the lowest penetration rate for insurance products in the world. Government initiatives on compulsory health care and motor insurance are expected to promote over 25% growth per year in the sector over the next 5 years. Royal Sun Alliance has been awarded their Royal Decree last year. A new mortgage law is expected to come into force in 2010 along with the introduction of commercial courts and a Court of Appeal.

28. In the past Lord Mayors have been invited to speak at the Jeddah Economic Forum which in itself was of value but invariably meant that calls on ministers and others fell by the way due to the 3 day conference and travel to and from Jeddah. The recently adopted Global Competitive Forum might well take place in Riyadh in Feb 2011 and could be an ideal focus for the next Lord Mayoral visit. The recent initiative by the Governor of Makkah (see Para 34 below) would be a further reason for returning to Jeddah.

3rd March, 2010 75

Al Khobar 29. This year‟s programme started in Al Khobar, in the Eastern Province which accounts for 25% of the Arab world‟s GDP. It also has 25% of the world‟s proven reserves of oil (264 billion barrels), and 290 trillion cubic feet of gas. Calls here do not occur as frequently as Jeddah and Riyadh but they are appreciated not only by the expatriate community but also the immensely wealthy and influential businesses and professions associated with the oil & gas industries involved with the up and downstream work emanating from the sector. On arrival, the Lord Mayor was a guest of the Albinali family who hosted a Dinner for the Business Delegation and other local businessmen. The following day the Head of the British Trade Office, Dai Harries, hosted a working breakfast where the Lord Mayor met and was briefed by a number of UK expatriates from a cross section of financial services; this was followed by a call on the Regional Manager of the Saudi Arabia British Bank. A further call was made on the influential Asharqia Chamber of Commerce were the Lord Mayor addressed those present together with a number of media representatives. The final call was on the recently opened Prince Mohammed University which would eventually cater for a mixed graduate population of 5,500, where the Lord Mayor addressed the faculty and a number of early-bird students. Being a new university, it was still looking for partnerships elsewhere and showed an interest in a possible MOU with the Cass Business School. 30. Technical and Further Education (TAFE) is a professional training institute in the Kingdom that has a policy of offering internationally accredited courses and qualifications for the benefit of the nationals of Saudi Arabia and the Gulf region. They currently have agreements with a number of UK organizations including, ACCA, City & Guilds UK, and other international bodies. They offer a wide range of qualifications recognized by these international awarding bodies in the fields of Business, Administration, HR, IT, Accounts & Finance, Insurance, Language and other courses specific for industries, businesses, and public and private organizations. The CEO, Mr. Abdulghani Alrumaih wished to establish further business in the UK and Mansion House would put the administrator, Mr Johnny Mendiola in touch with the CoL‟s Economic Development Office (EDO). Follow-up Action. Mansion House would put Cass in contact with Dr Hesham Magd, the Dean of the College of Business and EDO with the TAFE Administrator. Jeddah 31. The programme in Jeddah included a roundtable discussion with local financial services hosted by the Consul-General Kate Rudd: SABB, Bank Al Jazira, Herbert Smith, AON South Arabia, and National Commercial Bank. After a halcyon 2008, trading in the region had shrunk dramatically in 2009 despite government encouragement for inward investment - but was on track to improve in 2010. Banking was still strong with supply and demand well balanced. Lessons from the 80s and 90s had been learned resulting in less turmoil than elsewhere particularly in the West. „Name lending‟ had been rife and led to a number of bad debts. SAMA was in the process of introducing new laws to prevent this. It was thought that banks would be flush with liquidity by the end of 2010. There were still issues with the legal system and new investors in the Saudi economy needed to know exactly where they stood regarding the existing commercial contractual laws. There was considerable development in Jeddah, confirmed by the call on the Mayor, but the new economic cities would be funded in large part by the private sector whilst the government would concentrate on health, education and infrastructure. King Abdullah Economic City was planned to be the size of Washington DC incorporating a Free Trade Zone and mixed schools. Follow-up action - The Consul-General would lead a FS related delegation to the UK in the week 21-25 June 2010. Mansion House would host one or two possible events. 32. The call on the Mayor elicited an update on the Jeddah Strategic Plan. The floods towards the end of the year were far worse than generally reported and had acted as a spur to the overall regeneration plans. The Lord Mayor invited the Mayor, when next in London, to call on Mansion House and the City Planning Department. There was clearly a constructive dialogue between the Mayor‟s office and the Vice President of the Jeddah Chamber of Commerce & Industry (JCCI), Dr Lama Al Suleiman, a dynamic lady with a PhD from London University. Her interests and that of her colleague focussed on civil society issues and the need to create an environment for better socio-economic advancement including the integration of more women into local government and key institutions. The JCCI worked closely with the Municipality to promote SMEs. Follow-up Action: Mansion House would put the Corporation of

76 3rd March, 2010

London‟s Social Services in touch with the President of the Think N Link Consultancy who leads on youth programmes.

33. Sheikh Khalid Alireza, Vice Chairman of the Xenel Industries and brother of the Minister of Commerce hosted a dinner in the evening. The Company covers energy, industry, construction, infrastructure development, healthcare, industrial services, ICT, logistics, real estate, and global investments. The Lord Mayor was able to meet a number of similar senior businessmen with a global reach including Sheikh Shafeg Binladen, who hosted a call at the Saudi Binladen Group‟s (SBG) HQ the following day. At then end of the evening The Lord Mayor was invited to the launch of the film „Arabia‟ in Clarence House together with HRH the Prince of Wales. Follow-up Action: In parallel with this cultural event, the Lord Mayor has offered to host a meeting at Mansion House for Painting & Patronage a cultural initiative launched by the Governor of Makka Province, HRH Prince Khalid Al-Faisal bin Abdul Aziz AlSaud and the Prince of Wales. The outcome of this meeting was likely to involve the „City Cultural‟ as well as „Business‟ and will involve the Lord Mayor on the next visit to Jeddah.

34. The call on the SBG, one of the world‟s largest construction companies with a global reach led off with a video briefing followed by discussions. Over decades, the SBG in various guises hah been involved with the modernisation of Saudi Arabia and had extensive contracts in other Arab countries. The company might shortly issue a further sukuk and was awaiting the new mortgage laws that would lead to further housing projects on a large scale. This was also an opportunity for those on the Business Delegation associated with the SBG to meet some of the Board members.

Islamic Finance

35. The Lord Mayor called on the President of the Islamic Development Bank (IDB), HE Dr Ahmad Al-Madani, and attended a roundtable conference that included the Business Delegation. The IDB was established in 1973 as an international financial institution and formally opened in October 1975. The Bank‟s purpose was to foster the economic development and social progress of member countries and Muslim communities in accordance with the principles of Sharia/Islamic Law.

36. The Bank provided equity capital and grant loans for productive projects and enterprises as well as financial assistance to member countries for economic and social development. The Bank had also established and operated special funds for specific purposes including a fund for assisting Muslim communities in non-member countries, in addition to setting up trust funds. The Bank was authorized to accept deposits and to mobilize Sharia compatible financial resources. It was also charged with the promotion of foreign trade, especially in capital goods, among member countries; providing technical assistance to member countries; and extending training facilities for activities in Muslim countries. Present membership consisted of 56 countries.

37. This was a useful and important follow-up to the first meeting with the last Lord Mayor and centred on the issue of a future sterling sukuk. Richard Thomas, Gatehouse Bank, led on the UK position. Points discussed included:

The issuance of a UK Sterling Sukuk by the IDB, which the BoE and FSA agreed to recognise for the purposes of bridging an important gap within UK Islamic Banks. Extending the current programme of events with the Islamic Research and Training Institute, that have been endorsed by UKTI and attended by FSA, BoE and HMT. London as a centre for global Trade Finance. Setting the risk management and regulatory framework for financial stability. Setting the legal framework for Islamic financial products.

38. It had been agreed, in principle, between the IDB, HMT, and the Financial Services Authority, to issue a Sterling Sukuk an important, if not vital, constituent of UK Islamic Banking under the new liquidity regime. Despite the IDB Treasurer instigating work on this in July 2009, the process had stalled and this meeting provided the forum to re-energise the process. The President was invited by the Lord Mayor to address the 8 June 2010 London Seminar on Sukuk Development and the Vice President of Finance, Dr Abdul Aziz Al Hinai, was invited to call on the Lord Mayor when next in London. Follow-up Action. Richard Thomas would take forward the Seminar; with the Lord Mayor overseas a past Lord Mayor would be approached to join the President, if available. The Lord Mayor hosted a call by the VP and Richard Thomas shortly after returning to the UK.

3rd March, 2010 77

Riyadh

39. On arrival in Riyadh the Lord Mayor called on the Tadawul or Stock Exchange before addressing a lively expatriate community in the Embassy compound followed by a private „Chatham House‟ dinner hosted by Khaled El-Seif, Joint Chair of the Saudi-British Joint Business Council (SBJBC). Guests included the Governor of SAMA, the Chairman of the Tadawul, members of the Supreme Economic Council, and the MoF Undersecretary.

40. The following day he made a courtesy call on the Governor of Riyadh, HRH Prince Salman bin Abdelaziz Al-Saud, during which he offered short term attachments with the CoL to the Government of Riyadh/Arriyadh Development Authority. Further calls were made on Ministry of Finance, Ministry of Commerce and Industry, the Governor of the Saudi Arabia Government Investment Agency (SAGIA), and the Governor of the Saudi Arabia Monetary Authority (SAMA) before media interviews and a final Dinner for local businessmen hosted by the Ambassador. Follow-up Action. Post would liaise with the Governor‟s Office and approach the EDO with any viable requests.

Tadawul All Share Index (TASI) 41. Supervised by the Capital Markets Authority (CMA) since 2003, the Saudi Stock Exchange was the largest in the Gulf region with 120 licensed companies and a market capitalisation of around $350bn. The market broadly mirrored the Dow Jones and FTSE but had lost 50% of its value in 2009 but was now recovering in line with other major world indices. In 2009, the market had been led by momentum trading - where investors buy as prices rise, rather than on the stock‟s fundamentals – which has led inevitably to considerable volatility. Saudi corporates account for 7% of market share, whilst 88 % were individual Saudis. The biggest companies on the exchange were Al Rahji Bank and the state petrochemical producer, SABIC. Foreigners are only allowed to purchase shares if they hold a residency permit that limits their access to the market. Foreigners account for less than 0.2% of shares. Non-resident foreigners can only access the market through swap agreements. 42. During the presentation to the Lord Mayor it became apparent the Exchange was keen to develop a derivatives market and to start up a futures market other than that for oil. But attempts to introduce this and other products, such as exchange traded funds (ETFs), have been blocked by the CMA which remains highly risk-averse to the introduction of new products. The Chairman, Dr Fahad Al-Mubarak, outlined the Tadawul‟s main objectives: increase foreign participation; diversify their products; introduce corporate bonds and derivatives; encourage more institutional investors. Considerable help had already been received from the London Stock Exchange (LSE) whose Deputy CEO was on their Advisory Board. However the Chairman hoped that the Tadawul and the LSE might work more closely together. Afternote: This month, Saudi Arabia has approved its first ETF, which will be accessible to foreigners as part of efforts to open up the biggest Arab bourse. Follow-up Action – the Lord Mayor agreed to follow up with the LSE. He also mentioned that the LSE would like to talk to the Tadawul about the „Millennium‟ proposal for upgrading the IT trading programme. Call on SAGIA 43. SAGIA is the country‟s inward investment agency. Its role is to identify and attract new investment as well as to provide support to existing investors. Its opening remit in April 2000 was to improve the investment climate within the Kingdom and strengthen the rights and privileges of the foreign investor. SAGIA has such a broad mandate that a large number of Government Ministries and agencies are represented on the Board of Directors. It has responsibility for the licensing of foreign investment and for the six new economic cities; it also provides a one-stop shop for foreign investors. The Governor briefed on the „10 x 10 Vision‟ statement that encapsulates the planned rapid and sustainable economic growth for: a pro business environment; a knowledge based society; and four economic cities. The Kingdom was looking to the UK - and specifically the City - to engage and introduce FS businesses to the $300Bn of infrastructure opportunities. 44. During discussions, the Lord Mayor reaffirmed the UK‟s support for investors in Saudi Arabia and congratulated the Governor on achieving 13

th position in the OECD „Ease of Doing Business

Index‟. He also explored, through the Business Delegation, ways to follow up on the

78 3rd March, 2010

recent Two Kingdoms Trade & Investment seminars under the SBJBC and through that, opportunities for the UK private sector within Saudi Arabia. Proposals were discussed for a Working Group to act as one of the key channels to bring all elements of the larger and more complex financial services sector together with their counterparties in the UK. It was hoped there would be two full meetings a year, one in the UK and one in Saudi. The agenda might focus on:

Mobilising support from the UK for the project financing needs of the Kingdom going forward, including development of the PPP/PFI sector. Mobilising support from the UK for the development of the Debt Capital Market in the Kingdom. Preparing the UK financial service sector to play its role in the development of the Kingdom‟s mortgage, leasing and finance company sectors once the new cluster of laws are passed. Continuing and enhancing the dialogue on regulatory and legal reform as it relates to the financial services sector.

Follow-up Action - Jason Peers would write to Sheikh Khaled Olayan asking him to Chair the new SBJB Working Group.

Call on SAMA

45. Having made us all welcome, the Governor, HE Mohammed Al-Jasser, was congratulated by the Lord Mayor on his re-appointment. In a comprehensive review of the Saudi economy and financial system, he said that inflation was under control and banks were better capitalised than ever before. Basel II, G20, liquidity ratios and counter-cyclical buffers were all in place. He made the point that SAMA had not abrogated its responsibilities when banks and others “thought they knew best”. There was a need to match the interests of the shareholders against those of the general public and SAMA played a key role in this mediation. SAMA‟s approach to the regulation of banks was, in, the Governor‟s words, to „make life boring for them‟. Policies would be put into place to abort surplus liquidity when that once more became a problem.

46. The Governor and the Lord Mayor shared a number of ideals for the future of financial services and were concerned about the inevitable arbitrage that would arise from countries and regions taking unilateral action. The US institutions were considered important but if the right legislation regarding regulation is not in place, the significance of the US Financial Markets might be considerably reduced. Reform was needed but not, perhaps, as much as Paul Volker would wish; for the time being, the Governor considered the jury as being „out‟. He remarked on the need for a division of labour between the policy makers, regulators, and service providers. Those involved in defining „Good Governance‟ would be challenged in defining where supervision ends and management begins. There was an overriding need for convergence of international accounting standards.

47. In answer to a number of questions from the Business Delegation, the governor acknowledged that the economy grown at such a pace that banks were not able to fund some of the major infrastructure projects and that there would be a place for a rejuvenated Bond Market – not least to meet the needs of the new mortgage market. New mortgage laws would soon be passed increasing the need for sukuks and a deeper bond market - but oversight had yet to be agreed. Asked about insurance the Governor considered the need to be more sophisticated and probably better regulated; some policies were too obscure and others speculative. The Government was demanding higher reserves than some companies were prepared to hold. Follow-up Action - The Lord Mayor invited the Governor to the 2010 Mansion House Bankers‟ Dinner.

Media Comment

48. In all five centres the Lord Mayor was able to engage with local and regional media, both written and broadcast. The aims of the visit, the size of the business team and the high level of contact were all set out and the Lord Mayor‟s views on issues such as protectionism, corporate governance, transparency and other significant themes. Inevitably, some commentators presented the visit in rather narrow terms but in general it was well covered. The FCO posts which put considerable effort into arranging media opportunities were content with the public diplomacy benefits gained.

Summary

3rd March, 2010 79

49. Judging by the Ambassadors‟ reports, this was a good visit under challenging circumstances particularly in the financial services sector where, even in the Gulf, arguably the most resilient region in the world, governments were still assessing the fallout from the recent financial crisis. The focus of calls was on current events and most of the aims, shaped around the changing conditions, were met. Much of the follow-up reflected the need to maintain close contacts with old friends and to keep London in the forefront of the minds of government ministers and key businessmen. With that in mind all inward visits would be most welcome – particularly in the City.

Follow up Action.

Country Follow-up Action Org/Dept

Bahrain

Bahrain

(Para 7)The Lord Mayor would invite the Crown Prince and the

Governor of Central Bank to the Annual Bankers’ Dinner at

Mansion House.

(Para 12) Through the BBBF, it was agreed that:

They would revisit London – liaise through Post.

The CBB & CISI would continue their discussions on qualifications.

UKT&I would work with Ernst & Young on ETQ and ancillary

services and on inJAz.

Post would ask Al Salam Rep for a summary of the tax regime

related to Islamic financial investment in UK property, feeding

concerns through UKTI FSG to HMRC.

Mansion House would link Cass Business School with the BBBF.

UKTI would contact the Institute of Actuaries.

(Para 16) Relating to IF, it was agreed that:

More could be done to promote the collaboration that already exists.

More staff exchange programmes and internships between Bahraini

and UK banks would be encouraged.

UKTI would support the Islamic Finance Trade Body and facilitate /

encourage the ToR for the Bahrain-UK Islamic Finance Working

Group (IFWG).

The Bahrain-UK IFWG and other relevant bodies would promote IF

Education.

The CBB would initiate contact with IFC and other related UK

organisations to set up a group to standardise Sharia finance.

Mansion House would provide the venue for the launch of UKIFS 31

Mar 10.

Post would advise Mansion House when Head of AAOIFI, Mr

Mohammed Al Chaar, was in London.

Mansion

House /

Post

Post /

Mansion

House /

UKTI /

CISI

Post /

UKT /

Gatehouse

Bank /

UK IFWG

Saudi

Arabia

Al Khobar

(Para 30) Mansion House would put Cass in contact with Dr

Hesham Magd, the Dean of the College of Business and EDO with

the TAFE Administrator.

Mansion

House

Saudi

Arabia

Jeddah

(Para 31) The Consul-General would lead a FS related delegation

to the UK in the week 21-25 June 2010. Mansion House would host

one or two possible events.

(Para 32) Action from the Jeddah CC&I meeting:

Mansion House would put the Corporation of London’s Social

Services in touch with the President of the Think N Link

Consultancy who leads on youth programmes.

(Para ) Cultural contacts:

The Lord Mayor has offered to host a meeting at Mansion House for

Painting & Patronage a cultural initiative launched by the Governor

of Makkah Province, HRH Prince Khalid Al-Faisal bin Abdul Aziz

Al-Saud and the Prince of Wales.

C-G

Jeddah/UK

TI

Mansion

House

Mansion

House

80 3rd March, 2010

(Para 38) Action from the IDB Roundtable:

Mansion House would provide the venue for the launch of the

UKIFS Association on Thu 31 Mar.

Richard Thomas would take forward the IF Seminar Tue 8 Jun.

Mansion

House /

UKIFS

Gatehouse

Bank

Saudi

Arabia

(Para 40) call on the Governor of Riyadh:

Post would liaise with the Governor’s Office and approach the EDO

Post /

EDO Riyadh

Saudi

with any viable requests.

(Para 42) Call on TASI:

The Lord Mayor agreed to follow up with the LSE. He also Mansion

Arabia mentioned that the LSE would like to talk to the Tadawul about the House /

Riyadh ‘Millennium’ proposal for upgrading the IT trading programme. LSE / Post

(Para 44) Call on SAGIA:

Jason Peers would write to Sheikh Khaled Olayan asking him to

Chair the new SBJB Working Group.

(Para 47) Call on SAMA;

The Lord Mayor invited the Governor to the 2010 Mansion House

Bankers’ Dinner.

Jason

Peers

Mansion

House

51. The Lord Mayor wishes to thank the Ambassadors in Bahrain and Saudi Arabia for their kind hospitality and invaluable advice throughout the visit. He would also wish to thank their staff for the considerable amount of hard work in preparing and providing such good programmes – not least in the light of the other VIPs and delegations that have recently transited the Gulf. The many instances of hospitality on and off duty were much appreciated, as was the presence of senior government officials and representatives of the business community on those occasions. Finally, he would like to acknowledge the support of the Business Delegation organised by the IFSL, and for the input from the EDO and UKT&I.

Annex A to Programme Manager‟s Report

Dated 31 March 2010

Aims and Objectives for Lord Mayor’s Visit to Bahrain and Saudi Arabia: 16-24 February 2010

Bahrain • Reinforce the City‟s position as global financial centre messages of Lord Mandelson‟s

and Duke of York • Highlight opportunities for partnerships, investment and expertise sharing across full

range of financial services • Develop specific sectors of Islamic Finance, education and training, sustainable

development • Reasure Bahrain of its importance to the UK and reinforce UK‟s position as partner of

choice

Maintain momentum of work under UK-Bahrain Memorandum of Understanding • Further UK – Bahrain cooperation in tackling global economic crisis (eg: on regulatory

reform and macro-economic policy)

Saudi Arabia • To understand the key financial flows from and within Saudi Arabia and the Gulf region,

and the areas in which Saudi Arabia wants to call on global financial services expertise • To promote open financial markets, including identifying any opportunities for removing

regulatory or legal barriers to the flow of financial services activity between the UK and Saudi Arabia • To build on the visit by the Lord Mayor in 2009, encouraging more, and more regular,

contact between Saudi and British institutions, and to prove the opportunity for British institutions to engage with Saudi Arabia

To raise awareness of the London offering, specifically UK expertise in Islamic finance

3rd March, 2010 81

and to make the case for London to be the location of choice for overseas listings by Saudi companies and for fund management • To build on Saudi Arabia‟s genuine interest in developing the use of PPP projects to support its infrastructure development • To underline Saudi Arabia‟s importance as a regional player economically as well as a leader in the Muslim World • To foster constructive and closer relations between Islam and the West, and within that context, support for social, legal and political reform

To support bilateral commercial and political relations between the UK and Saudi Arabia.

Annex B to Programme Manager‟s Report

Dated 31 March 2010

Business Delegation for Lord Mayor’s Visit to Bahrain and Saudi Arabia: 16-24 February 2010

Serial Participant Company Bahrain Saudi Arabia

Al

Khobar

Jeddah Riyadh

1 Wayne Evans IFSL – BisDel Leader ~ ~ ~ ~

2 Richard

Thomas Gatehouse Bank - CEO ~ ~ ~ ~

3 Leina Kattan Gatehouse Bank ~ ~ ~ ~

4 Michael

Hodges HSBC Bank plc ~ ~ ~ ~

5 Florence Eid

Passport Capital- MD for

MENA

~ ~ ~ ~

6 Jaffer Mazaal

CII - Regional Manager,

GCC Markets

~ ~ ~

7 Alexander

Millar Invesco - Associate Director ~

8 Andrew

Yeandle

Strutt & Parker - CEO ~

9 Tim Taylor JS Berwin ~

10 Mark

Greenwood

CII - Head of Regional

Business Development

~

11 Adrian

Woodcock Norton Rose - Counsel ~

12 William Knight Campbell-Lutyens & Co ~

13 Nicholas

Edmondes

Trowers & Hamlins -

Partner

~

14 Adrian Low DLA Piper ~

15 Simon Vere

Nicoll Clyde & Co - Partner ~ ~

16 Nicholas Moy Gryphon ~ ~ ~

17 Edward Rose

Trowers & Hamlins -

Partner

~ ~

18 Darran

McGlinchey

Norton Rose - Senior

Associate

~

19 Jason Peers Jasper Consulting ~

20 David Church DLA Piper Middle East ~

21 Tracy Elner Ashton Commodities ~

22 Jeffrey Evans Clarksons ~

TOTALS 14 6 9 14

82 3rd March, 2010

Annex C to Programme Manager‟s Report

Dated 31 March 2010

LORD MAYOR’S VISIT TO SAUDI ARABIA & BAHRAIN: 16th

– 24

th February 2010

TIME ENGAGEMENT

07.30 The Lord Mayor, Alderman Nick Anstee and Alderman and Sheriff

David Wootton leave Mansion House with Senior Programme Manager

(SPM), Billy King-Harman.

10.20 Depart LHR Terminal 5 on flight for Bahrain

19.45 Arrive Manama, met by HMA, HE Mr Jamie Bowden OBE and CEO

of the Bahrain Economic Development Board (BEDB), HE Sheikh

Mohammed bin Isa Al Khalifa.

20.30 Briefing supper in the Residence with the Ambassador, and CEO

Standard Chartered & UK Financial Services Champion, Jonathan

Morris; Also present: DHM Rupert Potter, Head of UKTI Section

Rebecca Topping, and Financial Services desk officer, Myrna

AlMehaiza.

Wednesday 17th

Feb – Bahrain

TIME ENGAGEMENT

08.00 Briefing at the Ritz Carlton by HMA and Jonathan Morris. Overview

of Bahrain and financial services.

09.00 Meeting with the Governor of the Central Bank, HE Mr Rasheed Al

Mir’aj.

10.00 Launch of Thompson Reuters Islamic Finance Gateway.

11.00 Arrive BEDB; met by CEO, HE Sheikh Mohammed bin Isa Al

Khalifa. Possible brief bilateral for the Lord Mayor with the CEO in the

margins. Presentation on Bahrain, the EDB, and Vision 2030, followed

by a discussion / Q&A.

11.30 Call on HRH Prime Minister Khalifa bin Salman Al Khalifa.

12.30 Arrive Palace; call on HRH the Crown Prince Salman bin Hamad Al

Khalifa, followed by Lunch hosted by HRH The Crown Prince. Foreign

Minster ( and late Ambassador to London) HE Sheikh Khalid bin

Ahmed Al Khalifa also present.

14.45 Arrive BFX; met by CEO, Mr Arshad Khan.

16.00 Arrive Palace for audience with HM King Hamad bin Isa Al Khalifa.

19.05 Arrive Residence for Reception for Bahraini Financial Services Sector.

20.30 Dinner with the Chairman of the BBBF, Mr Khalid Zayani.

3rd March, 2010 83

Thursday 18th Feb – Bahrain

TIME ENGAGEMENT

08.00 Business Forum at the Ritz Carlton chaired by Chairman of the BBBF, Mr

Khalid Zayani, with senior figures from Bahraini Financial Services

Sector. Themes: Islamic Finance; Capital Markets; Insurance; ETQ;

Property Investment.

09.30 Arrive Ministry; call on Minister of Finance, HE Sheikh Ahmed bin

Mohammed Al Khalifa.

10.30 Meeting in Hotel with Foreign Minister, HE Sheikh Khalid bin Ahmed

Al Khalifa.

12.00 Meeting with CEO Mumtalakaat, HE Mr Talal Zain.

12.45 Lunch at the Residence with senior Bahraini bankers, hosted by HMA.

14.30 Arrive Bahrain University, met by President- Mr Ebrahim Janahi.

Lord Mayor to speak followed by HE Sheikh Mohammed bin Isa Al

Khalifa, followed by a Q&A session moderated by Mike Hannna, Al

Jazeera.

19.00 Arrive Gulf Hotel met by host, Chairman of the BBBF, Mr Khalid Al

Zayani.

Friday 19 Feb – Bahrain/Al Khobar

TIME ENGAGEMENT

16.00 British Trade Officer, Mr David Harries and Neil Wilson meet Lord

Mayor and entourage at King Fahd causeway. Transfer to Movenpick

Hotel.

18.00 Briefing at 50A Al Zahra. Briefing from Riyadh Staff:

General briefing – Sharif Moussa; Financial briefing – Paul Williams

19.30 Arrive Residence and met by hosts: Sheikh Samir Albinali and Mr

Bassam Albinali.

Saturday 20 Feb – Al Khobar/Jeddah

TIME

08.00 ENGAGEMENT

Breakfast meeting at Movenpick Hotel with Eastern Province Business

Delegates:

Tim Rockell; Waheeb Yousuf; Malcolm Weaver; Mr Naveed

Ahmed Jeddy ; Mark Cooper; Gavin Ames; Geoff Fennah; Ken

Patton; Mr Andrew Jackson; Saul Thomas.

10.00 Call on Saudi Arabia British Bank, Bank Area General Manager, Eastern

Province, Mr Saeed Ali Al Mahoudi.

11.00 Arrive Asharqia Chamber of Commerce; call on President, Mr

Abdulrahman Rashed Al Rashed, and Secretary General Mr Adnan A

Al Nueim, followed by TV interview with Mohammed Azzouny.

12.15 Arrive Prince Mohammed University; call on Vice Rector Academic

Affairs, Dr Nasser M Shaikh. Tour facilities followed by speech and

84 3rd March, 2010

Q&A session with students.

Media press interviews, Mr Mohammed Al Waeel, Chief Editor Alyam

Newspaper.

18.00 Depart on Flight to Jeddah.

20.05 Arrive King Abdul Aziz International Airport, Jeddah -met by Consul

General, Ms Kate Rudd and DHM, Mr Greg Gibson.

Sunday 21 Feb - Jeddah

TIME ENGAGEMENT

08.30 Breakfast meeting hosted by C-G/SABB with Financial Experts.

TIME ENGAGEMENT

10.00 Arrive City Hall; call on Mayor of Jeddah, HE Adel M Fakiel.

11.00 Arrive JCC&I; call on V President, Dr Lama A Sulaiman and Sec Gen,

Mr Mustafa Achmed K Sabri. Press conference followed by lunch.

13.30 Arrive Islamic Development Bank, call on President. HE Dr Ahmad

Mohamed Ali Al-Madani. Also Present, V President, Mr Abdul Aziz

Al Hani.

20.00 Dinner hosted by Vice Chairman Xenel Industries Ltd, Sheikh Khalid A

Alireza.

Monday 22 Feb – Jeddah/Riyadh

TIME ENGAGEMENT

09.00 Press conference.

10.00 Arrive Headquarters Binladen; call on V President – HE Sheikh Shafig

Binladen and members of the Board.

13.50 Depart on flight for Riyadh.

15.20 Arrive at King Khalid International Airport, Riyadh - met by Paul

Williams and Tim Dearden.

16.00 Arrive Tadawul, call on CEO Mr Abdullah Al-Suweilmy, and

Chairman, Dr Fahad Al-Mubarak.

17.30 Meet HMA, Sir William Patey KCMG and Lady Patey (Vanessa).

Guest Speaker at Riyadh Group for British Business special Briefing,

Embassy Hall.

19.30 Dinner with Chairman of the El Seif Group of Companies, Mr Khamed

Musaed Al Seif.

Tuesday 23 Feb – Riyadh

TIME ENGAGEMENT

10.00 Arrive Palace; call on the Governor, HRH Prince Salman bin

Abdulaziz al Saud.

3rd March, 2010 85

11.15 Call on Deputy Minister of Finance HE Dr Hamad bin Suleiman Al

Bazie’.

12.30 Call on Deputy Minister of Industrial, HE Dr Khalid Al Sulieman.

14.00 Call on the Deputy Chairman Saudi Arabia General Investment Agency,

HE Amr Al-Dabbagh, followed by…Lunch.

15.00 Call on the Governor Saudi Arabia Monetary Authority, HE

Mohammed Al Jasser.

19.30 Dinner hosted by HMA with Expatriates and Saudi business people.

22.25 Depart on flight GF164 for Bahrain and London

Wednesday 24 Feb – Riyadh/London

TIME ENGAGEMENT

07.45 Lord Mayor arrives Mansion House.