Saidi, whose numerous non-DIFC roles include serving on the board of the London School of Economics’ recently opened Middle East Centre, told International Adviser that he plans to devote much of the next 12 months to two “pet initiatives”, both of which involve creating pan-regional infrastructures that would enable small- and medium-sized enterprises (SMEs) and family-owned enterprises (FOEs) to access the capital they need to grow.
Currently, SMEs account for “only 8% of loans” in the Middle East/North Africa (MENA) region, Saidi said, while only about 25% of such businesses have access to any bank financing at all.
“This really impedes their development and growth,” he added, noting that such development is particularly needed in a region that must create 51 million new jobs by 2020, “just to stand still on unemployment”.
"Providing long-term capital finance to SMEs and FOEs will support entrepreneurship and job creation," he added.
One of Saidi’s pet initiatives is a scheme to create a pan-MENA “second-tier” stock market called NEXPAND, which is envisioned as working as a “virtual exchange” in conjunction with all of the region’s existing stock markets, through a holding company that will be based – for regulatory as well as political neutrality purposes – in Luxembourg.
NEXPAND already has the backing of the European Investment Bank and Abraaj Capital – the Middle East’s largest private equity company – has completed a feasibility study, and is expected to be rolled out “before year-end”, Saidi said.
"The idea is to create a second-tier market similar to AIM (the London Stock Exchange’s Alternative Investment Market), Alternext (NYSE Euronext) and other successful secondary markets around the world.
"This would enable SMEs to list their shares by simplifying the listing requirements and making use of the ‘nomad’ [nominated adviser] model."
Saidi’s other project is a web-based “crowdfunding” scheme for the MENA region that woud allow investors to provide seed capital to innovators and start-up businesses. Crowdfunding enables entrepreneurs with good ideas but little or no money to obtain financing by posting their ideas online, and inviting those with money who think their idea is a good one to invest, typically in small amounts.
Ideas that do not receive sufficient support do not receive any money, but if the requested amount is committed, the funds are provided to the entrepreneur, who in turn offers his investors an equity stake.
No successor expected
It is understood that there are no immediate plans to appoint a successor to Saidi at the DIFC, as the role of chief economist was effectively created by him in the DIFC’s earliest days six-and-a-half years ago.
Saidi said he has also resigned from his post as executive director of the MENA-wide Hawkamah Institute for Corporate Governance, which he founded and which is hosted by the DIFC, although, as a corporate governance advocate, he remains a supporter.
As for why he is leaving the DIFC now, Saidi said he felt that his work there was finished, "as the centre has been successfully established", and that he was impatient to focus on getting more development finance for the region, from infrastructure to SME financing, in order to enable them "to achieve their true potential".
Saidi is originally from Lebanon, and was educated there, in the US and in London. Prior to coming to the DIFC in 2006, his roles included stints as Minister of Economy and Trade and Minister of Industry of Lebanon between 1998 and 2000; minister of Economy and Trade, and Industry in the Lebanese government, between 1998 and 2000; first vice-governor of the Central Bank of Lebanon between 1993 and 2003; and member of the UN Committee for Development Policy from 2000 to 2006.
Oher current roles he holds include chairman of the non-profit Clean Energy Business Council of the UAE; non-executive director of Majed Al Futtain Trust, Dubai; and non-executive director of Future Pipe International, also in Dubai.
In 2012, Saidi was named among the 50 most influential Arabs in the World by The Middle East magazine, for the fourth consecutive year.
Saidi, whose last day as DIFC chief economist was on Monday, said he expects to split his time between Dubai and Beirut.
