Saudis spent more money on electronic devices during the 4th week of May: SAMA data
Saudis spent more money on electronic devices during the 4th week of May: SAMA data/node/2518746/business-economy
Saudis spent more money on electronic devices during the 4th week of May: SAMA data
The latest data from the Saudi Central Bank, also known as聽SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.
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Updated 28 May 2024
Arab News
Saudis spent more money on electronic devices during the 4th week of May: SAMA data
Updated 28 May 2024
Arab News
RIYADH: 抖阴短视频鈥檚 point-of-sale spending reached SR11.2 billion ($2.98 billion) in the fourth week of May, official figures showed.
The latest data from the Saudi Central Bank, also known as聽SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.
Beverages and food, which accounts for the largest share at 14.9 percent, saw a 5.9 percent decline, reaching SR1.66 billion, during the week from May 19 to 25.
Meanwhile, transactions at restaurants and cafes, holding a 14.6 percent share, recorded a slower decline of 4.8 percent, amounting to SR1.64 billion.聽
Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 5.1 percent decline that week, reaching SR1.36 billion.聽
Despite composing only 1 percent of the week鈥檚 overall POS value, spending on education recorded a minimal increase of 0.1 percent to SR152.48 million.
In the past few years, this sector has been allocated the largest share of government expenditure in comparison聽to other divisions of the economy.聽
Efforts are underway to revamp the education system, aiming聽to equip the national workforce with the necessary skills to thrive in a technological and information-centric global economy.
The hotel sector experienced the largest decline in POS transaction value, dropping 10.9 percent to SR227.13 million.
According to data from SAMA, 35.44 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.97 billion. However, this represents a 1.6 percent decrease from the previous week.聽聽
Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.
Spending in Jeddah followed closely, accounting for 14.3 percent of the total and reaching SR1.60 billion; however, it marked a 3.1 percent weekly drop.聽
The two cities that registered the highest declines in POS spending were Makkah and Madinah, with decreases of 11 percent and 6.8 percent, respectively. The value of transactions in Makkah reached SR380.98 million, while in Madinah, it was SR393.26 million.
Half of UK businesses impacted by Middle East conflict
British Chambers of Commerce survey shows companies faced increased costs, shipping disruption
Updated 14 sec ago
Arab News
LONDON: Half of British businesses say they have been affected by the conflict in the Middle East, according to a survey from the British Chambers of Commerce.
The findings show that on top of the devastating human impact of the fighting in Gaza and Lebanon, the economic repercussions are being felt around the world.
Houthi militants in Yemen began attacking shipping in the Red Sea shortly after the Oct. 7 Hamas attacks sparked Israel鈥檚 war on Gaza.
The militants claim they are targeting ships linked to Israel and its allies in solidarity with Palestinians. The result has been a huge reduction in traffic through one of the world鈥檚 busiest maritime trade routes.
The BCC said shipping container rates have risen sharply since the conflict began. The cost of shipping a 40-ft (12-meter) container from Shanghai to Rotterdam has risen from just over $1,000 at the start of the conflict to just under $4,000 now. Prices peaked at more than $8,000 in July.
Most shipping companies operating between Asia and Europe have opted to send vessels around the longer Cape Horn route rather than through the Red Sea and Suez Canal.
In the survey of about 650 businesses published this week by the BCC鈥檚 Insights Unit, UK firms said the conflict had led to increased costs, shipping disruption and delays, and uncertainty over oil prices.鈥
Half of those asked said the conflict had affected them, compared to just over a quarter in a similar survey in October 2023. This suggests more businesses worldwide have been affected by the fighting the longer it has gone on.
William Bain, the BCC鈥檚 head of trade policy, said: 鈥淎longside the grim human impact of the ongoing conflict in the Middle East, the situation continues to have economic reverberations around the world.
鈥淭he effect on businesses here in the UK has continued to ratchet up the longer the fighting has continued.
鈥淚f the current situation persists, then it becomes more likely that the cost pressures will build further.鈥
Economists have warned that while the effects on the global economy have so far been largely limited to shipping costs and delays, further escalation could have a much wider impact.
The biggest concern would be a disruption to oil and gas supplies that would lead to a surge in global energy prices, fueling inflation.
COP29 unveils Baku Call initiative to bridge climate finance and peace for vulnerable communities
Elshad Iskandarov highlighted the 450 million people who live in regions simultaneously impacted by conflict and climate vulnerability
Updated 40 min 7 sec ago
MANAL AL-BARAKATI
BAKU: The world鈥檚 most vulnerable communities stand at the heart of the newly launched 鈥淏aku Call on Climate Action for Peace, Relief, and Recovery,鈥 unveiled on Friday at COP29.
The initiative addresses the urgent need to tackle the interconnected challenges of climate change, conflict and humanitarian crises.
Backed by key nations from both the Global North and South 鈥 including Egypt, Italy, Germany, Uganda, the UAE and the UK 鈥 it introduces the Baku Climate and Peace Action Hub as a platform for driving peace-sensitive climate actions and unlocking vital financial support for affected regions.
Speaking to Arab News, Ambassador Elshad Iskandarov of the COP29 Presidency articulated the stakes clearly, pointing to the 450 million people who live in regions simultaneously impacted by conflict and climate vulnerability.
鈥淭hese compounded crises not only strain existing resources but also hinder the effective delivery of climate finance,鈥 he said.
The Baku Call seeks to address this by providing a centralized mechanism to coordinate efforts across stakeholders 鈥 governments, UN agencies, think tanks and peace-building organizations. 鈥淭he hub will serve as a unified entry point for vulnerable nations, ensuring streamlined access to climate finance and technical support,鈥 he said.
The initiative builds on established frameworks such as COP27鈥檚 Climate Responses for Sustaining Peace and COP28鈥檚 Declaration on Climate, Relief, Recovery, and Peace, while adding practical innovations.
Iskandarov highlighted a digital portal in development that will provide a clear overview of existing climate finance mechanisms, application requirements and best practices.
鈥淚magine a country facing daily challenges of conflict, development and climate impact. Without proper guidance, navigating six to nine funding channels becomes nearly impossible,鈥 he said. The portal aims to close this gap by strengthening national capacities and offering tools to access and manage climate funding effectively.
A central focus of the initiative lies in developing pilot projects tailored to conflict-affected areas, where conventional funding approaches often fall short. 鈥淚n regions with strong non-state violent actors, we must ensure that funds reach the communities in need without falling into the wrong hands,鈥 Iskandarov said.
To achieve this, the hub will facilitate close collaboration with UN agencies and local communities, designing projects that integrate peacebuilding goals and adhere to stringent oversight standards.
Partnerships have been instrumental in shaping the initiative. The ambassador commended the co-lead nations for their shared commitment to inclusivity and cooperation, noting how countries such as the UAE, Egypt and the UK brought their experiences as prior COP hosts to strengthen the effort.
鈥淭his is not about initiative nationalism,鈥 he said. 鈥淲e鈥檝e drawn lessons from the pandemic, where global unity was key, and applied them to forge a collaborative approach to the climate and peace nexus.鈥
The Baku Call also seeks to shift the broader narrative around climate and peace. Iskandarov expressed a long-term vision where this intersection is no longer synonymous with crisis and destruction but instead embodies hope and development. 鈥淥ur ultimate goal is to create a future where the nexus of climate and peace signifies resilience and harmony, not despair,鈥 he said.
Gulf鈥檚 record FDI inflows growing the pie for all, says Bahrain鈥檚 economic strategy chief
Updated 15 November 2024
Mohammed Kinani
MANAMA: Gulf countries鈥 success in attracting foreign investments is a win-win for the region, a senior business strategy expert has told Arab News.
In an interview on the second day of the Bahrain International Airshow, Nada Al-Saeed, chief of strategy at the Bahrain Economic Development Board, described the Middle East鈥檚 growing ability to attract funding as 鈥渇antastic,鈥 noting that it brings greater attention to the region.
In 2023, 抖阴短视频 secured foreign direct investment inflows of SR96 billion ($25.6 billion), 16 percent higher than its target amount, while Bahrain received a record $1.7 billion over the same period, marking an 55 percent annual increase.
鈥淲hen 抖阴短视频 or the UAE does very well, it means that we could also benefit from that. I think that we often see the region as very competitive. I like to see it as a very collaborative and I think that everybody could benefit. If the pie gets larger, each individual鈥檚 share will also get larger.鈥 she said.
Reflecting on Bahrain鈥檚 FDI increase, Al-Saeed said that figure relates to the Economic Development Board鈥檚 achievements.
鈥淚f we are looking at the foreign direct investments鈥 statistics and results, we will see Bahrain actually attracted a much larger number than that, but this represents a record number for the EDB,鈥 she said.
Nada Al-Saeed, chief of strategy at the Bahrain Economic Development Board. Supplied
Al-Saeed noted that funding secured in 2023 went to investment projects across all of Bahrain鈥檚 priority sectors, which include financial services, communication and technology, and manufacturing, as well as logistics and tourism,
鈥淭hese are the key priority non-oil sectors identified by the government, and they are the focus of the EDB. The board has dedicated teams for each sector to promote and attract investments in these areas,鈥 she said.
She also said that these projects have contributed to job creation in the country, and she expected this investment trend to continue.
Explaining how her organization鈥檚 strategy aligns with the country鈥檚 economic vision for 2030, Al-Saeed said that the EDB, as the nation鈥檚 investment promotion agency, works very closely with a wider ecosystem of stakeholders known as 鈥淭eam Bahrain.鈥
This group has tailored its investment promotion strategies to mirror the government鈥檚 national economic plans.
鈥淏ack in October 2021, the government launched the economic recovery plan where it identified key priority sectors, and the EDB aligned to that in order to ensure that we operate as a cohesive unit, and we are able to attract the right investments that will further stimulate the development and growth of our country,鈥 the chief officer said.
Discussing the unique advantages Bahrain offers, Al-Saeed highlighted the country鈥檚 success over the past decades in attracting regional investors that now play a vital role in the nation鈥檚 economy.
鈥淚f we look at our foreign direct investment statistics, we will see the majority of our foreign investments come from the GCC region, and that is predominantly in the financial services sector, and this is a trend that we have seen since the 70s, where Bahrain managed to attract a lot of regional capital in the financial services sector from 抖阴短视频, Kuwait, the UAE, and others, of course.鈥 she said.
鈥淭here are many advantages because we treat GCC investors like Bahrainis when it comes to the processes of establishing business activities,鈥 Al-Saeed added.
In addition, Bahrain has a wide range of incentives that are offered to investors.
One of these is the work of the country's labor fund, Tamkeen, which offers businesses the opportunity to support hiring local talent, as well as training and upskilling them to meet the needs of those companies.
Al-Saeed highlighted recent regulatory changes aimed at making Bahrain more attractive to global businesses and startups, and emphasized that significant efforts have been made to ensure the state remains both competitive and conducive to investments and business growth.
鈥淢aybe one of the key, or most recent initiatives that is worth highlighting, is the Golden License program that was launched back in April 2023, which aims to provide streamlined services to strategic investment projects that are valued at $50 million or that creates 500 jobs here in Bahrain,鈥 she said.
The chief officer added that through this initiative, projects and companies can benefit from expedited services when it comes to getting approvals, licenses or even access to decision makers.
鈥淭his has been very instrumental in terms of ensuring that we provide high-class services to investors,鈥 said Al-Saeed, noting that nine projects have been granted Golden License status since the initiative was launched.
She further said that the total of those projects is valued at $2.4 billion, with investors coming from various sectors and different regional and global countries, including Bahrain.
In response to a question about the role of the aviation sector in the EDB鈥檚 investment strategy, Al-Saeed stated that it helps create a conducive investment environment, as it is what connects Bahrain with the rest of the world.
鈥淭his is not just in terms of the movement of people but also in transporting goods and service through air cargo. So, it is very important; as we do not target just the market that is within our geographic boundaries, but we aim to serve a much wider area and catchment area,鈥 she said.
抖阴短视频鈥檚 demand for apartments pushes new mortgages over $16bn
Updated 15 November 2024
Dayan Abou Tine
RIYADH: Banks in 抖阴短视频 granted SR60.92 billion ($16.24 billion) in residential mortgages in the first nine months of 2024, an annual rise of 4.88 percent.
The data was released by the Saudi Central Bank, also known as SAMA, and it showed the bulk of the loans 鈥 constituting 64 percent or SR38.85 billion 鈥 was allocated for house purchases.
This segment did witness a 3.38 percent dip year on year, with its proportion of total loans shrinking from the 69 percent seen during the same period of 2023.
Demand for apartments surged, capturing 31 percent of total mortgages, up from 25 percent a year ago, as this category of lending reached SR18.6 billion.
This shift represents a 26.8 percent growth, underscoring the increasing preference for apartment ownership amid urbanization and demographic changes.
Additionally, loans for land purchases showed a promising trajectory, achieving an annual growth rate of 8.26 percent and amounting to SR3.5 billion, which signals a sustained interest in land investment across the Kingdom.
The rise in new residential bank loans across 抖阴短视频 is being driven by a blend of population growth, evolving mortgage policies, and increasing interest in apartment living.
According to a recent report from online real estate platform Sakan, the Kingdom鈥檚 population surged by four million over the past five years, with demand for housing climbing in response.
While this trend fuels the broader housing market, apartments have become a prominent focus, reflecting changing demographics and affordability needs.
The growth of the expatriate population, which expanded from 9.9 million in 2010 to 13.4 million in 2022 and now makes up over 40 percent of the population, also adds pressure on the rental market, particularly in major cities.
The government鈥檚 push for greater home ownership through buyer-friendly mortgage policies is helping fuel this apartment demand.
Favorable mortgage options and the recent introduction of the Premium Residency Visa, often dubbed the 鈥淪audi Green Card,鈥 allow foreign investors to enter the market with purchases over SR4 million, fostering interest in upscale residential investments.
Additionally, the value proposition of apartments is clear, as with SR1 million, buyers can access apartment sizes that vary by city 鈥 for instance, around 131 sq. meters in North Riyadh to a more spacious 333 sq. meters in Dammam, according to the report.
抖阴短视频鈥檚 liberalized foreign ownership policies and affordable mortgage terms further boost demand, particularly for apartments in desirable areas.
The high rental yields offered by apartments in 抖阴短视频 also attract investors, with two- and three-bedroom apartments in Riyadh delivering yields of 9 to 10 percent, and even higher returns in Jeddah, where a two-bedroom unit yields 11.7 percent.
These returns are notably higher than apartment yields in neighboring Gulf cities, where they average between 5 to 6 percent in Dubai, Abu Dhabi, and Doha.
High rental yields not only make apartments attractive as long-term investments but also help offset rising property costs, driving both end-users and investors to favor this category in a market characterized by shifting residential preferences.
According to the report, the surge is also driven by the rapid evolution of real estate technology.
Platforms like Sakan are reshaping the real estate landscape by enhancing transparency, streamlining property transactions, and providing data-driven insights for buyers and investors alike.
Leveraging local knowledge and international expertise, these platforms are supporting the sector鈥檚 growth by simplifying access to property listings, improving market transparency, and facilitating faster transaction times.
As property technology continues to integrate into the Saudi market, it is poised to play a pivotal role in sustaining the momentum of residential lending and meeting the needs of a tech-savvy, expanding population.
RIYADH: 抖阴短视频鈥檚 official reserve assets reached SR1.71 trillion ($456.97 billion) in September, marking a 4 percent increase year-on-year, according to new data.
Figures released by the Saudi Central Bank, known as SAMA, show these holdings include monetary gold, special drawing rights, the International Monetary Fund鈥檚 reserve position, and foreign reserves.
The latter, comprising currency and deposits abroad as well as investments in foreign securities, made up 94.5 percent of the total, amounting to SR1.62 trillion in September. This category grew 4.11 percent during this period.
September data indicated that special drawing rights rose to SR79.86 billion, marking a 4.18 percent increase and reaching the highest level in two and a half years. SDRs now account for 4.66 percent of 抖阴短视频鈥檚 total reserves.
Created by the IMF to supplement member countries鈥 official reserves, SDRs derive their value from a basket of major currencies, including the US dollar, euro, Chinese yuan, Japanese yen, and British pound sterling. They can be exchanged among governments for freely usable currencies when needed.
SDRs provide additional liquidity, stabilize exchange rates, act as a unit of account, and facilitate international trade and financial stability.
The IMF reserve position totaled around SR12.64 billion, but decreased by 11.45 percent during this period. This category represents the amount a country can draw from the IMF without conditions.
抖阴短视频鈥檚 official reserves have been a fundamental pillar of the nation鈥檚 economic stability and are closely tied to its strategic investments in foreign securities.
The Kingdom鈥檚 reserves include an extensive portfolio of foreign assets, diversified across currencies and geographies, ensuring the country has a robust financial buffer against global economic uncertainties.
This prudent reserve management has helped 抖阴短视频 maintain a resilient fiscal position and a strong credit rating, affirmed at 鈥淎/A-1鈥 by S&P Global, which recently upgraded the Kingdom鈥檚 outlook to positive due to its sustained reform momentum.
In alignment with Vision 2030, 抖阴短视频 has adopted an expansionary fiscal policy to support transformative projects aimed at reducing its economic dependence on oil.
This ambitious agenda has led to budget deficits and prompted the country to tap into debt markets to finance key infrastructure and social initiatives.
Despite the uptick in debt, the Kingdom remains fiscally well-positioned, with ample reserves and substantial net assets, projected to stay above 40 percent of GDP through 2027 according to S&P Global.
This buffer underscores 抖阴短视频鈥檚 capacity to absorb potential economic shocks while continuing to pursue its development goals.
The nation鈥檚 significant reserve base not only underpins its economic stability but also provides the flexibility to recalibrate spending on large infrastructure projects as needed, maintaining a balance between growth and fiscal discipline.
This strategy is essential as 抖阴短视频 seeks to nurture its non-oil sectors, supported by the Public Investment Fund and other governmental entities.
The PIF鈥檚 role in fostering a diversified economy is central to Vision 2030鈥檚 objectives, from investment in renewable energy to technology and healthcare, creating a more resilient and diversified economic base.
With the positive outlook and strategic focus on sustainable growth, 抖阴短视频鈥檚 economic reforms are expected to drive strong non-oil growth over the medium term, further cementing the Kingdom鈥檚 fiscal stability and enhancing investor confidence in its long-term economic vision.
