| © 2009 |
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| ITgium Breaking News |
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Saudi Arabia, 10 billions $ technological challenge ! Today, technology importation (patents, technical assistance, surveys) cost an average of 10 billions of dollars each year to the Kingdom. For the last two decade, Saudi Ministry of Commerce & Industry gives an estimate of 150 billions of dollars of global technological purchase. Time is changing : instead of buying technology at a very high price from abroad, why not get the chance to develop it directly through the Saudi territory ? The main idea is to create new companies, modeling as start-up, targeting niche technology markets in the field of energy, recycling and environment. An opportunity to size ! Lacking of financial means and technology endorsement, European researcher faced strong difficulty in being anchored into a comprehensive financial plan ! Because each innovation requires time, validation tests, references and a pilot unit implementation, many abandoned their project at the halfway. Why not help them and at the same time, taking hold of this technology ? Long seen as the world super giant oilfield, Saudi Kingdom will be targeting the goal to be one of its laboratories. R & D is now 1.57% of the Saudi GDP, next decade an appreciable commitment is to reach 3 %. The Saudi technological power assertion could be based on developing projects with no immediate profitability. Because world wide financial situation increasing uncertainty, long term technology project regain the investors attention. Opening the door to inventors, giving them the chance to use extensively their skills to configure new products and expertise. Targeting the fields of renewable energy and environmental markets where demand is growing oriented, the return of investment (ROI) could be substantial in terms of revenue and corporate reputation. Moreover, this approach would give birth to companies able to commercialize patents and the technologies once developed. Companies share capital breakdown will be mainly keep by the Saudis. Because innovation is part of all firms competitiveness, selling technological solutions means also cash ! Instead of being the leading recipient of technology transfers, Saudis will sell them. In addition, this approach will pave the way for new markets. Because technology is a key access to market, that’s a double win win project. Having the right technology, Saudis investment fund could take hold of small companies able to reinforce its commercial scope and ROI attractiveness. History teaches us that the rise of civilizations flourished in the context of technology control. Instead of feeding the fears, Saudis will bring a constructive response ! Technology is a pacific weapon. Having them in our hand, we could control better our destiny and secure the world improvement. In this context, Itgium (Identified Technologies Energium fund) support and contribute to the creation of innovative technologies companies.
US government will default to pay back its creditors ITGIUM Analysis Team (ITA) predicts that before next November 2009, the US government will default and be prevented to pay back its creditors (holders of US Treasury Bonds, of Fanny May and Freddy Mac shares, etc.). Such a bankruptcy will provoke some very negative outcome for all USD-denominated asset holders. According to our team, the period that will then begin should be conducive to the setting up of a « new Dollar » to remedy the problem of default and of induced massive capital drain from the US. The process will result from the following factors : • The US public debt is now swelling uncontrollably • The ongoing collapse of US real economy prevents from finding an alternative solution to the country's defaulting What about the Saudi asset in America ? Already Investment funds of Saudi banks in America lost about 120 billion Saudi riyals ($32 billion) or 40 % of the value of their US asset in 2008 and the first two months of 2009. Prince Prince Al Waleed lost about 40 % of its asset due merely to its participation in the nearly collapsing City group financial bank. If the US government defaults on its debt, the damage for the Saudi assets through America will be even worst with a concern lost of 60 % of their US asset. Taking into account this extremely harsh situation, ITgium Analysis Team (ITA) pleaded that the Saudi’s financial bodies will diminish their buying of US Bonds and delay some other investment in banking. ITgium Analysis Team (ITA) argue that Saudis financial bodies has to diversify their asset taking a much stronger part in Technology investment as for example in small size companies targeting niche technology markets in the field of energy, recycling and environment. For further information : ITgium Economic Team (ITA) Contact: jliu@itgium.com |
