Posted: 27 Aug. 2018 4 min. read

Transform Saudi Arabia

By this time of year there’s a good chance nearly every new year resolution taken in January has failed. There’s a reason for that. Change is not easy. It is easy to think of, easy to plan and even easy to do for a short while. But change, transformation, is not easy to maintain. And yet, this is exactly what any organization wishing to thrive, not only survive, the Industry 4.0 economy must do.

The Harvard Business Review, as far back as 2009, published an article entitled “Constant Transformation is the New Normal” in which it touted that “Success now requires not just doing it better, but mastering the ability to do it differently.” And all the time.

In this new economy, our constant gear must be on forward, there is no neutral, and there is certainly no return. There is no waiting for things to go back as they were. The world of today is already different than that of only yesterday and will be different from that of tomorrow. Adaptation is our constant state of being. Adaptation is the new normal.

Going back is precisely what Salam Awawdeh warns against in his article To stay or not to stay? The oil and gas industry reforms continuum. Awadeh says: “With OPEC’s decision to raise oil prices, there is the risk of systematic industry reforms being halted [but] reforms must continue (and at a fast pace due to foreseen budget deficits) to help shift and sustain healthier GCC energy economies and deliver on the adjacent national economic plans.”

These national economic plans include mega projects that seek to lessen some countries’ reliance on energy revenues. One such plan is Saudi Arabia’s Vision 2030. According to Martin Cooper: “A key success factor for Saudi Arabia’s Vision 2030 will be dependent on whether the kingdom has learnt from previous attempts at economic diversification through other mega projects, such as Riyadh’s King Abdullah Financial District (KAFD) and Jeddah’s King Abdullah Economic City (KAEC).” In his article Transform KSA, Cooper highlights some of these mega projects and the keys to their success.

And as the GCC economies recover with increased oil prices, M&A activity in the region is also expected to increase. Zaid Selman and Khalid Faiq attest that: “If there is one industry that could spur growth in the number of M&A deals in the region, it is technology.” In their article Technology in the GCC: Leading the way and driving value, they write: “We are witnessing increased digital disruption which will reshape many industries and force companies to think about how they fit in the overall industry ecosystem.”

This overall industry ecosystem is the main driver behind The changing role of compliance say Hossam Samy and Disha Rustagi. “The pace of regulatory change,” they say, “has created a complex environment for compliance leaders across all industries […] the world of regulatory compliance is always evolving, with requirements constantly multiplying. To ensure adherence to increasingly stringent rules imposed across multiple jurisdictions, banks and financial services companies need to continually calibrate their compliance management function.”

Foreign pharmaceutical companies operating in the region are facing their own compliance challenges: taxation. Jan Roderick Van Abbe, in his article Tax, this is pharma suggests that “With the further implementation of taxes and tax developments in the region, foreign pharmaceutical companies are advised to develop a tax strategy for the region and review their current operating models to identify areas of potential tax risk.”

And in our article from the Deloitte Review we discover an industry that is, not only thrilling, but also on the cutting edge of engineering, technology and design.

“Formula One teams use nearly every advanced manufacturing technique available, from additive manufacturing to the digital thread. These technologies, in turn, change how the race teams must operate as a company. In short, Formula One race teams are already experiencing today the technological and management shifts that mainline manufacturers will likely see in 5-10 years’ time,” says Joe Mariani in his article Racing the future of production.

So, our advice? Stop resolving to change and actually do it. We show you how in this latest issue of Middle East Point of View.

The views and opinions expressed herein do not represent nor reflect those of Deloitte & Touche (M.E.) LLP (DME). Opinions, conclusions and other information in this blog post which have not been delivered by way of the business of Deloitte & Touche (M.E.) LLP (DME) are neither given nor endorsed by it.