1. GCF 2011
Proceedings
www.gcf.org.sa

2. HRH Prince Nayef Bin Abdulaziz Al Saud, Under the patronage of His Majesty HRH Prince Sultan Bin Abdulaziz Al Saud
Second Deputy Prime Minister, The Custodian of the Two Holy Mosques The Crown Prince, Deputy Prime Minister
Minister of Interior King Abdullah Bin Abdulaziz Al Saud Minister of Defense and Aviation, and Inspector General
Chairman of the Supreme Economic Council Deputy Chairman of the Supreme Economic Council

3. 5 Years of Fostering
Governor’s Foreword 1
Executive Summary 5
Competitiveness Table of Contents GCF 2011 Topics
Session Highlights
11
17
Inspiring Initiatives 53
GCF 2011 Speakers 63
Sponsors and Media Partners 75
GCF 2011 Hosts 83
GCF 2011 Photo Gallery 87

4. Governor’s Foreword

5. H.E. Amr Abdullah Al Dabbagh
Governor and Chairman of the Board
Saudi Arabian General Investment Authority
focus on future growth and outlined the and challenges raised. The exchange the country ranked 67th in the World was only 7 percent lower than in 2008, USD Yet to deliver sustainable prosperity,
“Saudi Arabia was 1 step next phase in Saudi Arabia’s drive towards of ideas and the networking that took Bank’s Ease of Doing Business survey and 38 billion. Globally, FDI inflows for other capitalism must be attentive to social,
below the rank of 10th competitiveness. The insights that place at the GCF will hopefully have improved to 11th in 2010, a remarkable emerging markets curtailed significantly. environmental, political and financial
(improved from 67th to 11th emerged during the conference were a lasting and far-reaching repercussions on success over a period of just 5 years. Supported by this improved business systems, with which it is intertwined.
testament to the growth and global scale competitiveness.
in 5 years), but what we have of the GCF 2011.
The 10x10 program originated 5 years environment, new ventures are attracting This imperative is reinforced daily by the
While the GCF is global in scope, it ago, when Saudi Arabia identified several growing investment, providing greater pressure placed on the foundations of the
achieved is the foundation How does innovation affect employment and contributing to economic
has special relevance for us here in obstacles to achieving long-term growth world’s economic well-being. Achieving
in establishing the culture of competitiveness? How can management Saudi Arabia. In defining the country’s and economic sustainability. Despite the diversification, thereby enriching the sustainable competitiveness has never
competitiveness, establishing and policymakers encourage innovation? development strategy, the Supreme country’s robust energy sector, low levels lives of Saudi Arabia’s young, hopeful been a more pressing challenge, neither
a common language of What tools and equipment do people, Economic Council, through the Saudi of economic diversification, a low level of population of tomorrow. for Saudi Arabia nor for other forward-
benchmarking against best organizations and nations need to innovate Arabian General Investment Authority, labor participation and the rapid growth This competitiveness drive does not end looking nations.
up to their maximum potential? has committed to achieving world class in youth population were all expected
practices and indicators used economic competitiveness as the platform
with the 10x10 program. The second phase For this reason, I am proud to present the
To answer these questions, the world’s to affect the economy, namely the of competitiveness will be the Economic proceedings of the Global Competitiveness
by different rankings around for enhanced prosperity. public sector. Saudi Arabia needed to do Cities, which will become new benchmarks
premier gathering on competitiveness Forum 2011 and invite you to join next
the world.” challenges brought together over 2000 The first phase in this competitiveness something and the answer was to improve in Saudi Arabia’s competitiveness. Within year’s conversation, where the theme will
attendees representing 47 countries. drive was called the 10x10 program. The the country’s competitiveness. the Economic Cities, a benchmark of be “Entrepreneurship”.
Dear Readers
Over 100 eminent leaders, executives mission of the program was to transform Critical to the 10x10 program was the 60/24/7 will also be established, where
The fifth annual Global Competitiveness Forum This is not the end of our competitiveness
and intellectuals spoke about their Saudi Arabia into one of the world’s Top Ten opening of the economy to private and any government process can be completed
convened when the global economy showed journey; the future will be even more
visionary perspectives on how to align a most competitive economies by 2010. The foreign investors, which has led to a strong within 60 minutes 24/7.
signs of tremor, due to the economic crisis, and interesting.
national competitiveness agenda with GCF 2011 is a celebration of the successful investment surge. FDI inflows during the This is the vision of His Majesty King
focused on future growth. sustainability and social responsibility. completion of the 10x10 program. The economic crisis exceeded USD 35 billion, Abdullah, Custodian of the Two Holy
The conference’s theme “Innovation as a Over 700 senior level delegates, including objective of the 10x10 was to enhance which showed the significant resilience of Mosques, which guides our efforts.
Means of Competitiveness” built on this C-level executives, discussed issues Saudi Arabia’s competitiveness. In 2006 Saudi Arabia’s economy, since FDI in 2009
3 www.gcf.org.sa 4

6. Executive Summary
“ In an interdependent world,
innovation has to be built
“
into the model and structure of
operations
Bill Clinton

7. Opening Ceremony & GCF Starting the Discussion
world’s faith in Saudi Arabia’s economy. “The • Minister of Labor, Adel Fakieh The world’s economic centers of power are accentuating the importance of education and
economic reforms, that we have undertaken changing. Emerging countries will be the higher institutions of learning. This requires
in the last few years, are paying off. Everyone • Minister of Culture and Information,
Abdul Aziz Khoja driving forces of global growth in the future, education systems that provide citizens with
wants to invest in Saudi Arabia because the as wages rise and consumption increases. The a set of skills, applicable to tomorrow’s job
investments are safe and risk-free. This is And in the spirit of becoming a knowledge- future will see the heart of the economy in the industry. “We need to ask ourselves ‘what
just the beginning. We will continue on the based economy and living up to the theme of world shifting from Europe and North America output would we like the education system to
path of reforms and will provide more and “Innovation as a Means of Competitiveness”, to the heavily populated continents of Asia create’ not just how can we better educate our
better returns and incentives to those who the GCF 2011 offered the latest technology, and Africa. students”, said Joe Fuller.
are willing to invest in Saudi Arabia”. social media, and networking. The
conference was paperless with participants What effect does this have on the Innovation requires an ecosystem that
Prince Nayef’s speech and attendance at competitiveness landscape? Will the preference encourages risk and is tolerant of failure. It
the GCF, as well as the impact of its sponsor following conference events via iPads. An
iPad application, customized for the GCF, of the world’s multi-national corporations also requires availability of risk capital and a
SAGIA on the Kingdom’s competitiveness be to base their production and investment supportive regulatory regime.
agenda, were important recognitions of the allowed for networking with peers and
fellow GCF attendees, while at the same time activities closer to consumers? How will
event. Prince Nayef congratulated SAGIA for Furthermore, it needs labor markets that
being able to access social media outlets competitiveness be defined in the future, and
taking the lead in giving an impetus to the are meritocratic and flexible. Innovation is
like Twitter and Facebook for the latest GCF how can a country or organization stay ahead
process of turning the Kingdom’s industrial inherently risky. Therefore, individuals who are
news and commentary. Even though the or get ahead of the curve?
oil-based economy into a knowledge-based innovating successfully should be rewarded or
economy. The Crown Prince also recognized conference has ended, these social media The GCF 2011 thought to address exactly these else they will be discouraged. Besides, labor
and networking tools remain active and up-
With the economic recovery looking steady and the worst effects of the many individuals and organizations
to-date as participants, as well as SAGIA,
questions with the theme: “Innovation as a needs to be flexible so that cross-learning
that collaborated with SAGIA in this Means of Competitiveness”. among organizations and industries can take
the financial crisis behind us, focusing again on competitiveness is competitiveness drive, presenting mementos continue to contribute content. Over the last four years, the Global Competitiveness Forum has place more easily. The more interconnected
In the future, competitiveness will be defined
of paramount importance. to several Ministers attending, including: While the GCF 2011 may be over, the people are towards ideas and different practices,
discussions and ideas it spurred continue.
focused on innovation as a means of developing competitiveness, in by a nation’s or organization’s ability to be
the higher the likelihood for innovation.
• HRH Minister of Municipal and Rural innovative.
“Innovation as a Means of Competitiveness” success over a period of just 5 years. Affairs, Prince Mansour Bin Miteb The over 2000 delegates, almost half of order to build sustainability, promote responsible development and Thus, what does the whole theme of “Innovation
was the theme for the GCF 2011 and dug into them not coming from Saudi Arabia, can now Innovation can have many different forms, and
HRH Prince Nayef Bin Abdulaziz Al Saud, • Minister of Justice, Mohammed Al-Issa consider themselves part of a one of a kind
drive economic growth. However, this year innovation takes center there exists no one definition for innovation.
as a Means of Competitiveness” really boil
one of the key elements of competitiveness. down to? The theme reveals that innovation
Prime Minister of Saudi Arabia, recognized forum and are hopefully inspired to change stage as a means to solve those challenges. Former President Bill Clinton observed, that
The theme also serves as a segue to the next • Minister of Petroleum and Mineral is the new word for competitiveness, since
and congratulated SAGIA’s effort in his speech local, regional and global competitiveness, “most innovation is based on doing something
phase of Saudi Arabia’s competitiveness drive. Resources, Ali Al-Naimi tomorrow’s competitiveness will be decided
at the GCF’s opening ceremony. “Saudi Arabia wherever they can. old better, faster and cheaper”. In this way,
The completion of SAGIA’s 10x10 program by the better ideas.
has become a key to the stability of the world • Minister of Finance, Ibrahim Al-Assaf innovation generates greater efficiencies,
marks the end of the first phase of this drive.
economy and this is reflected in the number reduces resource demands and makes an
The objective of the 10x10 initiative was to • Minister of State for Foreign Affairs, Nizar
of investors who are lining up to invest in the enterprise more sustainable.
enhance Saudi Arabia’s competitiveness. In Bin Obaid Madani
Kingdom”, said Prince Nayef.
2006 the country ranked 67th in the World Innovation, as a means of competitiveness,
Bank’s Ease of Doing Business survey and Referring further to the increased FDI inflows, • Minister of Commerce and Industry, pits one country’s knowledge against another,
improved to 11th in 2010, a remarkable Prince Nayef said that this is a proof of the Abdullah Zainal Alireza
7 www.gcf.org.sa 8

8. GCF Outlook: Maintaining the
Competitiveness Momentum
The global competitive landscape is shifting King Abdullah, Custodian of the Two Holy and building the capabilities of the local labor And more than any other GCF conference
from one driven by a country’s natural and Mosques. force. Because of this, FDI is a key enabler to before, the world was introduced to the GCF
physical resources to one driven by competition diversifying the Saudi economy and driving it through the almost 20 leading media partners
In the second phase of competitiveness,
for talent and ideas. At least, this is what towards being a knowledge-based one. including CNN and Financial times. These
SAGIA’s attention will shift to being more
speakers and participants agreed upon at the media partners sent a total of 180 attendees,
sectors focused and building pockets of world Programs like Saudi Fast Growth 100, an
Global Competitiveness Forum – that the new 120 of which were from countries outside
class competitiveness in the form of economic annual ranking of Saudi Arabia’s 100 fastest
competitive world will be a flat, borderless the GCC. They produced 388 press releases
cities. Today, SAGIA is working on identifying growing entrepreneurial companies, will also
community. The evolution of communications published in 44 newspapers and conducted
and prioritizing sectors for investment that take more of a center stage. Such companies
and new technologies will only expedite 68 interviews which were broadcast on 13 TV
Saudi Arabia has competitive advantages serve not only as a benchmark for sector
this shift, forcing governments as well as stations, 11 being international.
in. The aim is that these sectors will attract competitiveness, but are also role models
organizations to become more transparent
investment, diversify the economy and create for other aspiring entrepreneurs. With SMEs What does all this mean? It means the stage
and accountable. And, what countries will be
quality jobs. The Economic Cities will be the being the drivers of employment globally, is set for the GCF 2012 with the theme being
best positioned to win in this new competitive
first step in promoting these sectors and will focusing on the health and growth of such “Entrepreneurship”.
landscape? It will be the countries that have a
serve as a benchmark for competitiveness in entrepreneurial companies will be critical to
talented, entrepreneurial workforce as well as And what can one expect from the GCF
the rest of Saudi Arabia. By creating pockets creating the 250,000 jobs Saudi Arabia needs
a government that is adaptable and promotes 2012? One can expect improved and greater
of competitiveness where doing business is per annum.
a positive business environment. content, conversations to be deeper and more
easy and there is an excellent quality of life,
The GCF as well will be an organ for maintaining thought provoking, networking and social
The 10x10 initiative was the crowning the Economic Cities will attract investments in
the competitiveness momentum with the media channels will be better, and more than
achievement of this first phase of the targeted sectors.
started discussion and creation of media anything else – GCF 2012 will be held in a
competiveness. Successfully fulfilling its
Foreign Direct Investment (FDI) is a special content. The community that was formed at more competitive Saudi Arabia.
objective of making Saudi Arabia more
focus of SAGIA and the Economic Cities because GCF 2011 continues through GCF’s Twitter
competitive and classifying the country as
with FDI comes firm commitments from multi- and Facebook pages, the GCF blog “GCF Talk”
one of the most competitive in the world. Its
national corporations to aid in the country’s and the graphic recordings saved on the GCF
success was due to a multitude of factors,
development – facilitating knowledge transfer Flickr channel.
none more important than the support of
10

9. GCF 2011 Topics:
Innovation as a Means of Competitiveness
Day 1 Day 2 Day 3
January 23rd 2011 January 24th 2011 January 25th 2011

10. Agenda KEYNOTE SPEECH
Dr. Hashim Yamani: "From Energy to Sustainable
Day 1 Welcoming & Networking
KEYNOTE SPEECH
John Kao, Author, Founder and Chair, ILSI; Founder, i20
Energy"
Gala Dinner
RCI Initiative
PANEL SESSION
“
Innovation as a Means of Competitiveness
This growth will require January 23rd PANEL SESSION
timely decisions and careful
2011
Innovation in Healthcare
PANEL SESSION
investments to continuously fuel Creative Capital
Coffee Break
the economic development of the country PANEL SESSION
and henceforth the prosperity of
“ Capital: Wanted
Lunch Program
future generations
Most Competitive Youth Initiative
PANEL SESSION
Contact: Learning from Outer Space
KEYNOTE SPEECH
Hashim Yamani Nassim N. Taleb: Robustness and Fragility
Coffee Break
PANEL SESSION
Shifts in the Energy Landscape
PANEL SESSION
Driven By Purpose
14

11. Agenda PANEL SESSION
Agenda
Day 2 Day 3
Cities of the Future
Welcoming & Networking KEYNOTE SPEECH Welcoming & Networking
Jake Eberts : “Corporate Social Responsibility and the
KEYNOTE SPEECH PANEL SESSION
Media”
H.E. Ali Al-Naimi: “Global Energy Outlook 2011” 10x10: A Case Study
MOVIE SHOWING
PANEL SESSION KEYNOTE SPEECH
“JOURNEY TO MECCA” VIEWING
Global Risks 2011
January 24th PANEL SESSION Gala Dinner January 25th Bill Clinton, the 42nd President of the United States
PANEL SESSION
2011 2011
i20 Saudi Fast Growth Initiative
Conscious Capitalism
Coffee Break PANEL SESSION
PANEL SESSION Rebooting Education
The Power of Social Media Coffee Break
KEYNOTE SPEECH PANEL SESSION
Paul Hawken: “Natural capitalism” The Power of Unreasonable People
Lunch Program Lunch Program
Oxford Initiative KEYNOTE SPEECH
PANEL SESSION H.E. Adel M. Fakeih, Minister of Labor
Greenovation PANEL SESSION
KEYNOTE SPEECH New Skills for New Jobs
Hans Dieter Pötsch, Member of the Board of Directors Coffee Break
and CFO, Volkswagen
PANEL SESSION
PANEL SESSION The Next Big Idea
Innovation in Heavy Industries
KEYNOTE SPEECH
PANEL SESSION Michael Porter
A Full Plate
Gala Dinner
Coffee Break FDI Initiative
15 www.gcf.org.sa 16

12. Session Highlights “ Only competitive businesses with
“
adequate productivity can create
jobs and generate income
Michael Porter

13. Keynote Speech: “The New Geography of Innovation” Innovation as a Means of
Day 1 Speaker: John Kao Competitiveness
Innovation is about change, often unpredictable
change, and breaking new ground in a new
However, John Rose, CEO of Rolls Royce,
reminded the panel that “not all innovation
way. It’s how businesses grow and nations is good innovation”, meaning that often
January 23th “The world has changed. In
build diverse and sustainable economies.
Innovation is there as an essential ingredient
innovations aren’t commercially viable. Jim
Albaugh supported the view coming from
2011
for growth. his experience with engineers at Boeing.
history, there has never been “Innovation is the best way for companies as He emphasized that each innovation an
as much collaboration as we well as for countries to compete”, said David engineer makes should be respected, in order
Drummond, Google’s Senior Vice President of to not discourage innovations from his side
see today. If we can share Corporate Development. Besides, the other in the future. “The ecosystem should lay the
ideas and learn from each panelists agreed that in future, instead of groundwork for innovation, then management
competing for what a country has, countries should allow innovators free reign to come up
other’s experience, then our will compete for what innovations they can with ideas and to be supportive even if they
interaction here at the GCF create. fail” said Andy Bird, Chairman of Walt Disney
Furthermore, in order to be competitive, International.
will be much more valuable”. companies and countries will need to create Towards the end of the session, the conversation
and foster an ecosystem that is supportive and turned towards opportunities for the Middle
capable. No one can predict the world’s next Eastern companies and countries to become
“We are in an era of exploding knowledge
big innovation. Otherwise it wouldn’t be called more innovative. Facts, like the doubling of
regarding innovation”, John said. He highlighted
innovation. All that can be done is to attend to Internet usage year after year or the ranking
the two driving factors behind this explosion
around the world - accelerating technology Speakers the supporting factors. of Saudi Arabia as the first for downloading
What are the key factors that help foster YouTube content via mobile devices, all assured
and a growing culture of entrepreneurship. Jim Albaugh David Drummond innovation? The panelists highlighted several the panelists that the region has a natural
President and CEO, Boeing Commercial Senior Vice President, Corporate Development key elements including: an ecosystem that tendency to be innovative. At the same time,
John’s belief about these innovations is that Airplanes, (BCA) and Chief Legal Officer, Google fosters change, a culture of tolerance towards there still exist barriers to innovation in the
innovation “is not just created by and for
John Rose Natalia Allen failure, a supportive regulatory environment Middle East, which need to be removed if
companies, but is the property of society”. The
Chief Executive, Rolls Royce Design Futurist and availability of risk capital. All these factors innovation is to reach its full potential.
future world, according to him, is faced with
add up to creating “the environment that
great challenges that need innovation, in order Andy Bird Dennis M. Nally induces innovation” said Jim Albaugh, President
to deliver solutions, which should not be the Chairman, Walt Disney International Chairman and CEO, PWC and CEO of Boeing.
exclusive property of any particular person or
organization but should be shared globally.
19 www.gcf.org.sa 20

14. Innovation in Healthcare Creative Capital
If healthcare is the treatment and prevention of physicians and hospitals, in order to abandon their Art does not only belong to walls and galleries artistic creativity go hand in hand while provid-
illness, what are the innovations needed, what are paper systems and adopt electronic medical record but can also play a crucial role in competitive- ing practical suggestions for the way that arts
the health concerns and what is being done around keeping. James Nakagawa, from Mobile Healthcare ness by collaborating with industry, academia can fuel private-sector competitiveness.
the world to ensure better and more accessible Inc., inspired the panel by providing an example of and business. This was concluded by the panel The audience was treated to an educational
healthcare? Estimates suggest that the world’s “life-watcher” technology, which allows a patient “Creative Capital”, in which Paola Antonelli, slideshow depicting various types of public art
population is set to increase by 50% by 2050. A to monitor his/her lifestyle as a means to promote Jake Eberts, Jitesh Gadhia, Mona Khazindar presented by Ms. Khazindar. She used these
major part of this growth will happen in emerging preventive health. Gathering and processing such and Venetia Porter presented their views. examples to demonstrate the crucial role that
economies characterized by low incomes and patient data effectively will help physicians tailor According to a report by UNCTAD, the creative aesthetics play towards driving development
inadequate access to healthcare. For many, the more effective treatments to their patients. economy is an emerging concept dealing with and creative competitiveness. “The environ-
question is not even ‘healthcare’, it’s survival. What about the rising cost of healthcare that the interface between creativity, culture, eco- ment we build around us is so important in in-
“Often the best innovations are innovations that dramatically increases the disparity between rich nomics and technology. The potential for these fluencing our attitudes and perceptions on any
improve processes, not innovations that invent a and poor? Innovations in this field can have the industries – museums, visual arts, design and given day…”.
new drug or new piece of medical equipment”, said greatest impact and reverse the trend. Innovations architecture – to generate socio-economic For anyone interested in owning a piece of this
one panelist. Such simple things as awareness and in the way healthcare providers deliver treatment, growth and development is being validated by creative capital, Ms. Porter provided an over-
prevention of diseases, electronic medical records measure outcomes and share information needs Speakers GDP and employment numbers. view of important contemporary Saudi artists,
and customized patient treatment are the keys to to be improved. Greater transparency as well as Mr. Ebert reflected on the process of raising such as Manal Al-Dowayan, who is supported
unlocking innovation in healthcare. maximizing value for every healthcare dollar spent Jitesh Gadhia Mona Khazindar capital for his first film. He used his experience by the Edge of Arabia platform to promote
Effective prevention is particularly relevant in Saudi is a first step. Managing Director, The Blackstone Group; Vice-President of Al-Mansouria Foundation to illustrate how business philanthropy has the Saudi art.
Arabia, where lifestyle changes can go a long way Besides, innovation in healthcare isn’t a one-way Board Member, NESTA potential to turn creative ideas into powerful
Jake Eberts
in limiting the growth of hereditary diseases, for street either. The developed countries are already Paola Antonelli Oscar winning movie producer, ‘Journey to cultural forces, noting “we are able to develop
Speakers example diabetes. Panelists, however, conceded teaching the developing countries how they can Senior Curator, Architecture and Design, The Mecca’ a sense of identity because of social interac-
that preventive measures can have strong social and deliver and treat patients for less. Whether it is by Museum of Modern Art tions”. Mr. Gadhia coupled Mr. Ebert’s com-
Salwa A.F. Al-Hazzaa James Nakagawa cultural implications. Delos Cosgrove of the Cleveland using mobile phone technologies to alert healthcare ments with his point of how innovation and
Head of Ophthalmology, King Faisal Specialist CEO and Chief Care Architect, Mobile Clinic Foundation shared an anecdote about his suppliers when a hospital’s supplies are running Venetia Porter
Hospital and Research Center Healthcare Inc. organization’s commitment to tackling unhealthy low or by having remote blood testing stations for Curator, Islamic and Contemporary ME, The
eating habits among employees. Cosgrove’s example malaria, where information is sent via satellite to a British Museum
Hermann Requardt Delos Cosgrove
CEO of Healthcare, Member of the Managing CEO, President and Chairman of the Board, emphasized the role of committed leadership to doctor sitting anywhere in the world and to mobile
Board of Siemens AG Cleveland Clinic Foundation achieving positive change in attitudes and behavior. clinics that reach rural areas.
Technology: new technology as well as improving the The possibilities are endless but there is pressure.
Ziad Abdeen use of old technology represents another important If the future world hopes for peace and stability,
Director, The Al-Quds Nutrition and Health component of innovative healthcare solutions. The it cannot continue to have great disparities in
Research Institute panelists urged stakeholders to provide incentives for healthcare, as it is present today.
21 www.gcf.org.sa 22

15. Capital Wanted Learning from Outer Space
Capital investment is the life blood of economic The Middle East is also pressed for these reforms The unconventional and highly relevant topic resources trying to contact alien societies when
growth and innovation cannot be supported by the region’s bulging youth population. Over of extraterrestrial life forms was addressed by the world is still faced with war and poverty.
without it. Therefore, if Saudi Arabia and the 50% of the Middle Eastern population is under the panel discussion “Contact: Learning from Mr. Pope explored the potential business
region aim at becoming more innovative, they 21 years of age, and the region’s economies Outer Space”. Experts Zoaghloul El-Naggar, implications of outer space, such as the
will need to attract capital investment and this are struggling to create the jobs needed to Stanton Friedman, Michio Kaku, Nick Pope profitability of alien branding or sponsorship.
means reforms. employ this next generation. The example of and Jacques Vallee showed compelling cases A 1980’s CocaCola commercial featured aliens
Addressing the changing global investment Tunisia should not go unheeded. While using for the existence of living beings elsewhere in downing the refreshing liquid…this might not
landscape, panelists discussed how the the Tunisian example as a precursor for what is the galaxy, drawing upon empirical evidence, be so far-fetched.
current economic environment presents an to come in the rest of the region is incorrect, it religious theology and logical reasoning. Mr. Vallee encouraged more academics to
opportunity for reforming and advancing is yet an indicator for the need for reforms that Psychological and socio-cultural assumptions analyze the evidence. However, on behalf of
the Middle Eastern financial markets. The increase employment and change the way and preconceptions constrain us to a large his successful Venture Capital fund, he said:
economic crisis has created the political will for business is done in the Middle East. extent and shape our views of the universe so “We are not ready to invest in this type of
change as regards regulations and government As the region reforms its regulatory regime, that we are inclined to find what we are looking research, but we think that somebody should.
policies, that until then may have stayed Ulf Henriksson had two pieces of advice that for and fail to see what we are not. The search for living beings on other planets
unquestioned. Insolvency laws and limited policy makers should keep in mind to “create Speakers “Flying saucers are real!” Mr. Friedman boldly could be a huge benefit to our intellectual and
access to bank lending for SMEs could all be the best future market possible”: said in his opening remarks. All the panelists technological development – regardless of the
addressed, creating a market of the future Availability of capital and risk assessment
Jacques Vallee Zaghloul Elnaggar actual existence of extraterrestrials”.
seemed to agree and share his perspective.
General Partner, SBV Venture Partners Professor of Earth Science and Geology,
that can innovate and create real jobs and should be aligned so that the cost of capital is However, while Mr. El-Naggar was also But whether there is extraterrestrial life or not,
Supreme Council of Islamic Affairs
novel industries. A reformed regulatory regime as low as possible. Michio Kaku convinced of extraterrestrial existence, he we will continue to wait for first contact.
would also “instill the confidence about the Different types of investment products and a Professor of Theoretical Physics, City Stanton T. Friedman remarked that it may not be ethical to spend
Speakers region and unlock the region’s full investment diverse lender base should be encouraged to University of New York, Host of Sci Fi Science Nuclear Physicist, Lecturer, Author
potential”, says Saeb Eigner. While the rest of allow new types of innovation to flourish. on the Discovery/Science TV Channel
Arif Naqvi Ulf Henriksson the developed world is on the road to a slow In the end, the panel concluded that the Middle
Founder and Group CEO, Abraaj Capital Chief Executive Officer, Invensys recovery based on fiscal stimulus, the Middle Eastern capital markets are already bright, but Nick Pope
Limited East can capitalize on its strong fiscal position more should be done to make them shine Author, Journalist
Victor Chu
John A. Fraser Chairman, First Eastern Investment and regulatory reforms, in order to attract brighter.
Chairman and Chief Executive Officer, UBS investment.
Global Asset Management
Saeb Eigner
Chairman, Lonworld
23 www.gcf.org.sa 24

16. Keynote Speech: Robustness and Fragility Shifts in the Energy Landscape
Speaker: Nassim N. Taleb
Most probably, no sector of the global economy Information Systems (GIS) to build solar power
is more fundamental to the future than energy, plants. Wu affirmed that through the use of
Claiming that society’s reliance on future Natural selection is the opposite of company nor is there any other sector with a more satellite technologies in selecting land and
forecasts increases fragility, Nassim N. profits and an example of the second type complex and controversial set of variables positioning solar panels, Saudi Arabia would
Taleb discusses in his book “Black Swan” the of volatility, the long one. Long volatility is to negotiate. Transformations in the energy be able to maximize the productivity of its
concepts, including how to make systems less something that involves a small loss, normally space are being characterized by an increase plants.
fragile. Nassim’s belief is that fragility is linked stemming from so-called redundancies or in diversification and the use of technologies Other panelists hailed nuclear as the energy
to volatility and that there are two types of it: inefficiencies, but that has a large “pay-off from to develop clean energy, agreed the panelists. of the future and as a key source of low
short and long volatility. mishandling”. Returning the example, natural With energy becoming a hot and controversial carbon electricity generation. On this point,
Short volatility is a system that returns positive selection is improved by genetic randomness topic, center stage technological advances, panelists lauded Saudi Arabia for investing
results for a short period of time before because it serves as a selection process for the environmental impact and renewable energy in nuclear energy and instructed countries to
producing a negative result. An example of strongest and most robust organisms. development need to be accelerated to create continue diversifying their energy portfolios
short volatility is the profits of a company; However, while Nassim dismisses future a future where energy security and harmony through strategies that better integrate
the company makes money for a number of forecasts as society’s weakness, he did make are established components. energy production with the needs of local
years, but also loses money when there are one prediction, saying: “I don’t know what will
Speakers Joe Stanislaw, of the JAStanislaw Group, communities and the environment.
downturns in the economy, which happens happen in 20 years, but i can predict what will declared that a new shift towards Panelists ended by concurring that energy,
Sandra Wu Tom Albanese “technology gain” represented a positive food and water are deeply interlinked and must
with a high frequency. not be there in 20 years, and i can predict what President and CEO, Kokusai Kogyo Group Chief Executive, Rio Tinto
will break”. social transformation in energy. As Stanislaw be considered together, as they are driving
Joseph A. Stanislaw Atul Punj argued, the future is “clean”. Panelists agreed economic and social development. To support
Founder, The JAStanislaw Group LLC Chairman, Punj Lloyd Ltd. that countries must work towards driving sustainable investments in energy, however,
technology to promote clean energy. governments need to maintain stable policies
Anne Lauvergeon Sandra Wu, of Koksai Kogyo Group, urged that promote political and regulatory stability.
CEO, Areva Saudi Arabia to utilize advanced Geographic
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17. Driven by Purpose Keynote Speech
Dr. Hashim Yamani
If there are heroes, there are needs. Continuing Mr. Chin discussed his innovative online
population growth, rising energy demands and donation mechanism, which has improved the
costs, increasing global inequity and poverty, educational opportunities for many Chinese Dr. Hashim Yamani, head of Saudi Arabia’s KACARE will go further, because Saudi Arabia’s
increasing global competitiveness and the students. While Mr. Rezwan described how newly established King Abdullah City for competitive advantages extend beyond just
growing impact of climate change mean that initial good faith by investors can generate a Atomic and Renewable Energy (KACARE), generating solar power into producing the
a new generation of innovative and influential self-sufficient business, if fostered correctly. outlined the Kingdom’s mission to shift its key components that make the technology
leaders must arise to create solutions to these The viability of highly profitable ventures, energy generation capacity towards a more possible. Photovolaic solar technology, one of
challenges. which also contribute to the community, was sustainable platform and become a global the two technologies available for commercial
An inspiring session, called “Driven by Purpose”, attested by Mr. Sim’s experience. At the same leader in alternative energies. solar power generation, uses solar panels
addressed the matter of the power and time, Mr. Singh described, how his powerful The well-funded KACARE is to serve as the made of polysilica and glass both of which
increasing popularity of new business models business idea sprouted only from a volunteer regulator and promoter of alternative energies Saudi Arabia has in abundant supply. In 2011,
of social entrepreneurship. These have the aid mission. in the Kingdom. KACARE’s mandate is both bold KACARE will be developing a strategy for how
potential to provide solutions to these issues. Wrapping up the session, Mr. Stear emphasized and forward-looking. KACARE is to immediately to exploit this competitive advantage for the
Calvin Chin, Mohammed Rezwan, Jack Sim, the need to use social businesses to fill crucial start working on nuclear power generation and benefit of the Kingdom.
Speakers Rahul Singh and Rory Stear provided firsthand gaps in social and economic development, developing an energy strategy for Saudi Arabia Closing his remarks, Dr. Yamani outlined the
accounts of their experiences contributing which are caused by the massive inequality that not only addresses the country’s energy core reasoning for the launch of KACARE. Aside
Rahul Singh Calvin Chin to this inspiring new trend. Each of the five that plagues today’s world. These five
Founder and Executive Director, GlobalMedic CEO, Qifang needs but also helps develop its economy. from the fact that alternative energies will
entrepreneurs discussed, how they managed distinguished leaders are emblematic of Localizing production of key component parts become the way of the future globally, Saudi
Jack Sim Mohammed Rezwan to challenge the status quo that they found social entrepreneurship’s many forms. At the for nuclear, solar, wind and other alternative Arabia is increasingly consuming its oil and
Time Magazine as Hero of the Environment Executive Director, Shidhulai Swanirvar around them, in order to make their enterprises core of them, there is a sense of altruism and energies will be a top priority. gas resources for the generation of power, and
2008; Founder, World Toilet Organization Sangstha as sustainable as possible for all stakeholders, community-building, rather than just a pure Dr. Yamani outlined that aside from nuclear the situation is getting worse. At current rates,
in contrast to a “one-off support model”. profit motive. power being a top priority, solar power Saudi Arabia will soon consume more than
Rory Stear
Executive Chairman, Flambard Holdings, TIME generation is to be launched in the Kingdom half of the oil it produces, leaving the Kingdom
Hero shortly. With some of the most intense with less and less vital oil revenues. This is
levels of solar radiation in the world, Saudi undesirable, so the Kingdom will look towards
Arabia could be one of the most productive alternative energies as the way forward.
solar generating countries in the world. But
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