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Article
Publication date: 9 February 2015

Mohamed Aly Ramady

The purpose of this study is to investigate the effects of the global financial crisis on Gulf Cooperation Council (GCC) bank regulation and the impact on the region and the…

Abstract

Purpose

The purpose of this study is to investigate the effects of the global financial crisis on Gulf Cooperation Council (GCC) bank regulation and the impact on the region and the policies adopted by the regulators to avoid financial panic and contagion.

Design/methodology/approach

The author examines GCC countries’ financial soundness indicators in terms of capital adequacy, non-performing loans and provisioning rates, including central bank liquidity support, deposit guarantees, capital injections and monetary easing and policies to mitigate risk assessment, and the monitoring and elimination of practices promoting excessive risk. GCC compliance regimes through multinational organizations and the exposure of the region to cross-border financial linkages to test for financial soundness are assessed.

Findings

Overall, results indicate that comprehensive regulatory oversight exists in the GCC in conformity with international standards, and Basel capital adequacy requirements, and that the GCC regulators have acted prudently to establish high coverage in all measures but that gaps exit concerning cross-border surveillance and a need for imposition of capital surcharges on banks deemed high systemic risk. The supervision of Islamic financial institutions and a lack of inter-GCC liquidity support mechanism for this segment are highlighted.

Practical implications

The paper shows that the GCC regulators need to address cross-border surveillance, as local banks branch internationally and foreign banks operate in the region.

Originality/value

The author is not aware of any similar work that compares the regulatory policies of the GCC.

Details

Journal of Financial Regulation and Compliance, vol. 23 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

Article
Publication date: 28 August 2009

Mohamed A. Ramady

The purpose of this paper is to analyze the effectiveness of the Saudi Arabian Monetary Agency's (SAMA's) regulatory policies.

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Abstract

Purpose

The purpose of this paper is to analyze the effectiveness of the Saudi Arabian Monetary Agency's (SAMA's) regulatory policies.

Design/methodology/approach

Both descriptive and comparative analyses are used, especially in highlighting SAMA's monetary policies and approach during the 2008 world financial crises.

Findings

The analyzes revealed that SAMA has more than adequately met international regulatory supervision standards, but will face challenges in regulating the domestic Islamic banking sector, meeting the self‐imposed 2010 Gulf Cooperation Council (GCC) gulf monetary union under a fixed parity rate regime, developing cross border regulatory and supervisory skills, and suggests possible solutions.

Practical implications

The paper noted the role of SAMA in managing monetary policy under a fixed parity regime, its banking supervision policies, and the evolving nature of banking regulation in the face of globalization challenges, World Trade Organization (WTO) accession in 2006 and in coping with the 2008 global financial crises which could be a template for other GCC central banks. The paper highlighted the major elements and effectiveness of Saudi banking law and restrictions on Saudi banks in terms of capital adequacy, reserve requirements and financial services, and address issues such as the impact of new regulatory reforms by SAMA, and their effectiveness on monitoring and supervising Saudi banks.

Originality/value

The paper concludes that the effectiveness of SAMA's regulatory policies has withstood both domestic and international financial crises and that SAMA can play a powerful influence in the proposed GCC monetary union.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 2 no. 3
Type: Research Article
ISSN: 1753-8394

Keywords

Article
Publication date: 18 July 2011

Ruth Rios‐Morales, Mohamed Ramady and Louis Brennan

The purpose of this paper is to analyze the role of sovereign wealth funds (SWFs) in sustaining global economies. The subject of SWFs has increasingly garnered the concerns of…

Abstract

Purpose

The purpose of this paper is to analyze the role of sovereign wealth funds (SWFs) in sustaining global economies. The subject of SWFs has increasingly garnered the concerns of policymakers, market players and scholars for two main reasons: First, these funds represent the largest concentration of capital that the world has ever known, with the Arabian Gulf SWFs becoming increasingly important global players, especially during the most recent financial crises. Second, there is the dominant role of national governments in the management of these colossal funds. This paper assesses the contrasting perspectives on SWFs and analyzes the role they can play in sustaining the global economy by engaging in foreign direct investment.

Design/methodology/approach

Both descriptive analysis and comparative analysis are used.

Findings

SWFs are large and tend to be long‐term investors and have characteristics that are compatible with foreign direct investment (FDI). There is a role for them in sustaining the global economy via FDI. This analysis suggests that only 11 percent of SWFs' investment in FDI is needed in order to counteract the forecast decline of FDI. Initiatives such as the recently established Santiago principles can help to allay the concerns of host and investor nations. This paper concludes that SWFs should be welcomed by market players and policy makers as tools of economic growth.

Practical implications

Current trends indicate that SWFs are playing an important role as a source of foreign investment, and are also reducing the impact of liquidity pressures in the international banking system. The main driving force of their investing in the global market is in securing higher returns. However, there has been unease among Western countries that have concerns that governments could use SWFs to seize control of strategic companies in sensitive sectors, for their own purposes.

Originality/value

The paper assesses the potential contribution of SWFs to FDI and highlights aspects related to fostering a code of conduct that can allay concerns around areas such as transparency, and the extent to which restrictions should be imposed by host governments.

Content available
Article
Publication date: 18 July 2011

Evangelos Tsoukatos and Yiannis Dimotikalis

342

Abstract

Details

EuroMed Journal of Business, vol. 6 no. 2
Type: Research Article
ISSN: 1450-2194

Book part
Publication date: 5 August 2022

Fawaz Baddar ALHussan and Faten Baddar AL-Husan

Interpersonal and informal ties and networks, known as wasta in the Arab Middle East region, remain a major force in Middle Eastern societies, determining most economic, social…

Abstract

Interpersonal and informal ties and networks, known as wasta in the Arab Middle East region, remain a major force in Middle Eastern societies, determining most economic, social and political outcomes. Yet the literature on informal ties and networks is largely characterized by a lack of contributions from the Arab world, despite the adverse effect that lack of understanding of the wasta phenomenon is having on the effectiveness of expatriate managers and subsequently on business performance. This chapter therefore aims to shed light on the meaning, characteristics, structure, and role of wasta in establishing and maintaining successful business relationships. It ends with recommendations for foreign investors and international managers who wish to establish and maintain successful business relationships in the Middle East on how to capitalize on interpersonal networks within this process.

Details

Informal Networks in International Business
Type: Book
ISBN: 978-1-83982-878-2

Keywords

Article
Publication date: 19 August 2022

Abraham Stefanidis, Moshe Banai and Grace K. Dagher

This study refines theory of social capital by nesting it within a cultural context. More specifically, it aims at describing, explaining, and predicting the role of wasta, a…

Abstract

Purpose

This study refines theory of social capital by nesting it within a cultural context. More specifically, it aims at describing, explaining, and predicting the role of wasta, a social capital concept, as a moderator in the relationship between employees' ethical idealism and work engagement in Lebanon.

Design/methodology/approach

Based on a survey questionnaire translated from English into Arabic, 317 responses were collected from employees in Lebanon. Confirmatory factor analysis and hierarchical regression analysis were employed to test the hypothesized relationships among the examined variables.

Findings

Ethical idealism was found to be positively related to work engagement, and wasta was found to moderate the relationship between ethical idealism and work engagement. Work engagement levels of employees who displayed high levels of ethical idealism were less influenced by the negative effect of wasta than work engagement levels of employees who displayed low levels of ethical idealism.

Practical implications

Human resource managers, international negotiators, and global executives in Lebanon may use the findings of this study to update corporate human resources systems, such as employee recruitment and selection, handbooks, orientation, training programs, and performance appraisal, to better address employee attitudes toward the practice of wasta.

Originality/value

The study adds ethical idealism as an antecedent of work engagement, demonstrating the significant impact that wasta, with its positive and negative characteristics, has on the engagement of employees from the Arab world.

Details

Employee Relations: The International Journal, vol. 45 no. 1
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 16 February 2024

Ibrahim Mathker Saleh Alotaibi, Mohammad Omar Mohammad Alhejaili, Doaa Mohamed Ibrahim Badran and Mahmoud Abdelgawwad Abdelhady

This paper aims to examine the extent to which these reforms address the limitations of Saudi Arabia’s previous investment framework. Long viewed as a hostile environment in which…

Abstract

Purpose

This paper aims to examine the extent to which these reforms address the limitations of Saudi Arabia’s previous investment framework. Long viewed as a hostile environment in which to do business, the Saudi Government has enacted a broad sweep of measures aimed at restoring investor confidence in central aspects of the country’s evolving private law framework.

Design/methodology/approach

This paper offers a timely assessment of the raft of foreign investment reforms, both legislative and regulatory, that have been introduced in Saudi Arabia over the last decade.

Findings

The paper will proceed by outlining the perceived failings of the old investment regime before going on to reforms.

Originality/value

It will consider the remaining obstacles to the flow of foreign investment in Saudi Arabia in the context of the dual forces that have historically defined the Kingdom’s ambivalent investment law regime.

Details

International Journal of Law and Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1754-243X

Keywords

Book part
Publication date: 1 January 2008

Khaled Hussainey and Ali Al-Nodel

Purpose – This paper examines the extent to which Saudi listed companies report online information about their corporate governance practice in light of the guidance issued by the…

Abstract

Purpose – This paper examines the extent to which Saudi listed companies report online information about their corporate governance practice in light of the guidance issued by the Saudi Arabian Capital Market Authority (SACMA), thereafter.

Methodology – We adopted a content analysis approach, accordingly a corporate governance disclosure index is developed to analyse the content of every company's website.

Findings – We found that the majority of Saudi listed companies utilise the Internet to communicate some information about corporate governance to their stakeholders. We also found that the level of online reporting of corporate governance varies between sectors. In particular, the paper revealed that the banking sector has the highest level of corporate governance disclosure compared with other sectors. On the other side, companies in the industry and service sectors provide very little information about corporate governance on their websites. The results suggest that the nature of control over the sector, the involvement of government in the ownership and management of businesses and some social assumptions could have an impact on companies’ decision to disclose online information about their corporate governance in developing countries.

Practical implications – The importance of investigating online reporting of corporate governance in Saudi Arabia emerges from the fact that SACMA published a guidance in 2006 that recommends the disclosure of corporate governance information by Saudi listed companies. Therefore, it would be worthwhile informing SACMA about the extent of compliance with the guidance of corporate governance. This is essential taking into consideration two facts: first, the recent remarkable growth of the Saudi stock market which was accompanied by significant increase in the demand for additional information by stakeholders; second, the recent increase of the utilisation of the Internet by companies for disclosure purposes worldwide. Further, the results of this research study could add to our limited knowledge about the practice of corporate governance in developing countries.

Originality/value – This paper contributes to the limited literature on disclosure practices in developing countries in general and in Saudi Arabia in particular. Our review of the literature revealed that there is no study to date on online disclosure of corporate governance in Saudi Arabia and very limited research has been carried out in developing countries in general. This is important taking into consideration environmental factors of developing countries, which could bring different sight in the issue of the disclosure of corporate governance.

Details

Corporate Governance in Less Developed and Emerging Economies
Type: Book
ISBN: 978-1-84855-252-4

Article
Publication date: 7 December 2020

Ahmed Shaalan, Marwa Tourky, Bradley R. Barnes, Chanaka Jayawardhena and Ibrahim Elshaer

This study aims to examine the Arab practice of wasta (personal networks) and its potential interface with relationship marketing to enable firms to optimize their recruitment and…

Abstract

Purpose

This study aims to examine the Arab practice of wasta (personal networks) and its potential interface with relationship marketing to enable firms to optimize their recruitment and retention of customers in societies where personal ties drive business relationships. It explores whether relationship marketing influences customer retention when a personal contact leaves.

Design/methodology/approach

Empirical data were gathered from 305 customers introduced to Egyptian small and medium-sized enterprises via wasta. Multiple-item scales were adopted, drawn from previous empirical studies. Quantitative analysis was used, including confirmatory factor analysis. Structural equation modeling was used to test the hypothesized relationships posited.

Findings

Wasta plays a significant role in attracting customers, nurturing early relationships and enhancing relationship quality, but does not influence the retention of customers. Practicing relationship marketing post wasta can enhance customer loyalty, even if the business was developed through the wasta contact who left to join a rival firm.

Research limitations/implications

Potential limitations arise from cultural differences in other Middle Eastern countries. Future studies could also validate the results in different sectors/industries and explore managers and employees’ perspectives.

Practical implications

Several recommendations emerge for managerial practitioners, including the use of wasta to attract business, but more significantly, the need for the effective use of relationship marketing to retain business. The study suggests that if relationship marketing is practiced well, customers are likely to remain loyal to the firm, even if the business was developed through a personal wasta relationship with an employee who subsequently moved to a competitor firm.

Originality/value

This study is the first to develop a unified model connecting the Eastern notion of wasta (personal ties) with relationship marketing. The study enhances the knowledge of wasta and relationship marketing. It is among the first to suggest that should employees with personal connections to customers leave to join a competing firm, there is still a strong likelihood that if relationship marketing is effectively practiced, then customers will remain loyal to the firm (rather than to the former employee).

Details

Journal of Business & Industrial Marketing, vol. 36 no. 10
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 12 December 2022

Abood Khaled Alamoudi, Rotimi Boluwatife Abidoye and Terence Y.M. Lam

The smart sustainable cities (SSC) concept has a wide acknowledgement amongst governments and societies that deal with emerging technology and help in developing better urban…

Abstract

Purpose

The smart sustainable cities (SSC) concept has a wide acknowledgement amongst governments and societies that deal with emerging technology and help in developing better urban communities. However, the fact that citizens' participation (CP) is not adherent to the current policies and governance often boosts their aspirations of decision-making to become smart cities. This paper aims to identify SSC variables and, more importantly, rank, categorise and discuss the factors towards implementing SSC by engaging, empowering and enabling citizens to participate in the urban development of SSC.

Design/methodology/approach

A comprehensive literature review identified 38 factors in the CP process. Those factors were used to design an online questionnaire administered to the respondents. A total of 164 valid responses were collected. A two-stage statistical analysis was adopted. First, the Relative Importance Index (RII) was used to rank and prioritise the importance of the factors that affect the current policies and agenda. Second, factor analysis was utilised to categorise and group those factors.

Findings

This study founds four significant factors that help in implanting SSC: “knowledge of smart sustainable cities”, “awareness of smart sustainable cities”, “willingness of the citizens to participate” and “opinion on the current agenda of the government's role”.

Research limitations/implications

This study has a few limitations which can be considered in future studies. First, the response rate of the participant is relatively low (163), so sampling a larger segment will support the broader perception of the citizens.

Practical implications

The outcome of this paper underlines the need for the successful implementation of smart cities by adopting CP in the process of impacting policies and governance. Particularly, it identifies factors that help cities and policymakers in engaging CP in developing new policies and revising existing policies for promoting SSC.

Originality/value

There is a need to investigate the most critical factors that influence CP for implementing SSC. These factors have not been adequately examined in extant literature.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

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