Restructuring experts, local regulators, banks, law firms and corporates gather to discuss financial restructuring in Saudi Arabia
27 March 2017, 6:00PM - 8:30PM, AST Riyadh, Saudi Arabia
KPMG Al Fozan & Partners organized a conference in Riyadh to discuss issues and views on restructuring in the Kingdom of Saudi Arabia. Titled ‘Let’s meet challenges head-on’, the event took place on Monday 27 March 2017 at The Ritz Carlton Hotel in Riyadh, from 6:00 pm to 8:30 pm, followed by a networking dinner.
“In light of the current economic environment in the Kingdom, where in a rapidly changing and challenging landscape, the anchor businesses are under pressure, yet industrialization needs to be revolutionized at a much faster pace, we need to be prepared to address issues on the go”, said Abdullah Hamad Al Fozan, Chairman of KPMG Middle East and South Asia.
“With the continuing business stress in the key sectors, there is a flow on effect on the economy and the overall liquidity in the Kingdom. For several other reasons, already we see a decline in deposits and increase in NPL’s and interest rates. Today we talk about two, three companies, a couple of sectors, however the real issue is beyond these and growing. Too big to fail? It is not about size of the business, it is about how prepared you are to proactively manage your business. Commercial intelligence, good governance, knowing your options well, and effective decision making are really the key to business sustainment.
We’ve recognized what is important for sustainment, and are therefore, pleased to host this conference as part of KPMG Saudi Arabia’s commitment to supporting the Vision 2030 and the National Transformation Program. We believe that this conference will contribute a long way to facilitating effective implementation of the government’s objectives.”
KPMG Saudi Arabia sees a continuing influx of restructuring advisory opportunities in the Kingdom, particularly in sectors like construction, petrochemicals, retail, telecom, multi-investment family offices, industrials, hospitality, transportation, media and oilfield services.
“Among companies in the Kingdom, unfortunately there is a clear lack of awareness, coupled with several misconceptions about the issues involved in a robust restructuring process. We are pleased that our KPMG Restructuring experts from the UK are now committed to investing their time in Saudi, and providing specialist support for the development and delivery of the restructuring advisory agenda for their Saudi firm, said Islam Al Bayaa, Head of Deal Advisory at KPMG in Saudi Arabia.
“Changing times demand change in attitudes – we are no more living in a world where inefficiency does not have a cost, competition is not a challenge, markets are geographically defined, where resources are abundant and where borrowing should be influenced by names or assets, rather than its underlying economics.”
“Despite its challenges, restructuring can be the catalyst to an improvement in company performance and sustainable growth. An efficient financial restructuring process enhances value for both lenders and borrowers.
However, companies are not setup to have an in-house turnaround and restructuring function, and might not even realize a need unless the situation becomes apparent, or even exigent.
“Our market intelligence suggests a lack of the market appreciating the need for a niche role, and the value that an independent, third party advisor, such as KPMG, could play in undertaking a robust restructuring process. There are signs much earlier than an imminent default – it is important to have a checklist, and then a vigilant look at it, at all times.
“In view of this, have held this conference to give participants the opportunity to benefit from an extensive, proven, recognized and appreciated world-class experience of KPMG’s restructuring experts who would share their knowledge and expertise with the invitees to the conference.
The conference agenda included a brief presentation by the KPMG experts, followed by two independently moderated panel discussions and a Q&A session. The discussion panel will comprise KPMG restructuring experts, and representatives from Houlihan Lokey, regulators, banks, law firms, and corporates.
The conference discussed a range of issues and views from the current economic, financial and business environment in the Kingdom, to providing a better understanding of what entails a robust restructuring process and the importance of exploring and recognizing the available options before realizing any clearly available opportunities.
KPMG in Saudi Arabia is committed to strengthening its leading position as a principle provider of Audit, Tax and Advisory services through international expertise, and a dedicated local professional team having a strong insight to the Saudi market.
Also within the GCC, KPMG has had immense success in the restructuring and turnaround advisory space, helping realize immense value for its distinguished clientele. Likewise for the Kingdom, KPMG in Saudi Arabia is committed to offering valuable restructuring and turnaround advisory solutions, and capitalizing on its ever stronger international experience and expertise, helping realize an even greater value to clients in the Kingdom.
Globally, KPMG is one of the leading restructuring practices, with 1,600+ restructuring professionals (including 1,035+ in EMEA), in 80 countries. Several of the KPMG practices lead restructuring and turnaround advisory services, with UK being KPMG’s center of excellence. “I am delighted to be in Saudi Arabia for this conference and congratulate my colleagues at KPMG Saudi Arabia on organizing this timely initiative, said Dirk Vanschependom, Managing Director, KPMG Turnaround Practice, UK.
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