LONDON: Britain is prepared to pay up to €40 billion ($47 billion) as part of a deal to leave the EU, the Sunday Telegraph newspaper reported, citing three unnamed sources familiar with Britain’s negotiating strategy.
The EU has floated a figure of €60 billion and wants significant progress on settling Britain’s liabilities before talks start on issues such as future trading arrangements.
The government department responsible for Brexit talks declined to comment on the article. So far, Britain has given no official indication of how much it would be willing to pay.
The newspaper said British officials were likely to offer to pay €10 billion a year for three years after leaving the EU in March 2019, then finalize the total alongside detailed trade talks.
Payments would only be made as part of a deal that included a trade agreement, the newspaper added.
“We know (the EU’s) position is €60 billion, but the actual bottom line is €50 billion. Ours is closer to €30 billion but the actual landing zone is €40 billion, even if the public and politicians are not all there yet,” the newspaper quoted one “senior Whitehall source” as saying.
Whitehall is the London district where most British government departments and ministers are based.
A second Whitehall source said Britain’s bottom line was “€30 billion to €40 billion” and a third source said Prime Minister Theresa May was willing to pay “north of €30 billion,” the Sunday Telegraph reported.
Brexit Minister David Davis said on July 20 that Britain would honor its obligations to the EU but declined to confirm that Brexit would require net payments.
Foreign Secretary Boris Johnson, a leading Brexit advocate, said last month the EU could “go whistle” if it made “extortionate” demands for payment.
Pro-Brexit campaign group Leave Means Leave said speculation about a divorce bill was “unhelpful.”
“With the EU Brexit negotiations, nothing is agreed until everything is agreed,” said the group’s co-chair Richard Tice.
“The focus should be on accelerating talks with the aim of concluding them at the end of 2017. This would enable businesses to adapt during the 15 months leading to March 2019.”
The Telegraph said advisers in May’s office had warned bosses in London’s financial sector that Britain walking out of Brexit talks was a “real possibility” if the impasse over the bill cannot be broken.
Romano Prodi, former head of the European Commission, told the Observer newspaper it would be economic “suicide” for Britain to fail to reach a compromise on Brexit, and called on the EU to preserve as much trade with Britain as possible to avoid damaging both sides.
If Britain cannot conclude an exit deal, trade relations would be governed by World Trade Organization (WTO) rules, which would allow both parties to impose tariffs and customs checks and leave many other issues unsettled.
Last week, the Bank of England (BoE) said Brexit uncertainty was weighing on the economy. Finance Minister Philip Hammond wants to avoid unsettling businesses further.
The EU also wants agreement by October on rights of EU citizens already in Britain, and on border controls between the Irish Republic and the British province of Northern Ireland, before trade and other issues are discussed.
UK ready to pay up to $47bn to leave EU: Report
UK ready to pay up to $47bn to leave EU: Report
Closing Bell: Saudi main index closes in the green, reaches 12,379
RIYADH: Saudi Arabia’s Tadawul All Share Index edged higher on Monday, rising by 47.67 points, or 0.39 percent, to close at 12,379.54.
The benchmark index saw a total trading turnover of SR6.3 billion ($1.7 billion), with 116 of the listed stocks advancing, while 117 declined.
The MSCI Tadawul Index also gained 5.22 points, or 0.34 percent, to finish at 1,551.75. In contrast, the Kingdom’s parallel market, Nomu, ended the day lower, losing 281.88 points, or 0.89 percent, to close at 31,318.24, with 43 stocks advancing and 45 retreating.
Thimar Development Holding Co. emerged as the best-performing stock of the day, with its share price jumping 10 percent to SR51.70.
Other notable gainers included Arabian Pipes Co., which saw a 6.37 percent increase to SR13.36, and Middle East Specialized Cables Co., which rose by 4.95 percent to SR47.75.
Saudi Reinsurance Co. and ACWA Power Co. also posted solid gains, with their share prices surging by 4.82 percent and 4.41 percent, respectively, to SR58.70 and SR435.20.
Alamar Foods Co. saw the sharpest decline, with its share price dropping 3.33 percent to SR78.50. Nice One Beauty Digital Marketing Co. and Naseej International Trading Co. also recorded losses, with their shares slipping 2.91 percent and 2.60 percent, respectively, to SR56.80 and SR97.30.
Saudi Industrial Investment Group saw a 2.40 percent dip, closing at SR17.90, while Riyadh Cables Group Co. dropped 2.34 percent, settling at SR141.80.
Meyar Co. secured SR5.5 million in financing from Riyadh Bank to support its business expansion and enhance operational efficiency.
According to a bourse filing, the five-year financing agreement is part of the bank’s guarantee and bills program. The funds will be used to expand Meyar’s operations, develop production lines, and strengthen supply chains to boost overall efficiency. The investment aligns with the company’s strategic goals of increasing productivity and scaling its operations.
On the market, Meyar saw a 5.06 percent increase in its share price, reaching SR70.60.
Saudi Top Trading Co. announced the completion of construction at its West Coast Factory, which is set to begin trial production in the first quarter of 2025.
Located at the Rabigh PlusTech Park, the factory will start receiving raw materials, including polymer scrap, rubber, and synthetic wax, from Rabigh Refining and Petrochemical Co. This development follows a memorandum of understanding signed with Petro Rabigh in December 2022.
Under the MoU, Saudi Top Trading secured a 30-year lease on a site to produce 50,000 tonnes annually of polymer compounds, rubber, and waxes. With construction now completed, Saudi Top Trading is poised to enhance its production capabilities and leverage its partnership with Petro Rabigh.
THC partners with SIRC to boost sustainability, innovate waste solutions
JEDDAH: Saudi Investment Recycling Co. and the Kingdom’s the Helicopter Co. have partnered to boost sustainability efforts and develop innovative waste management solutions.
The two companies, operating under the Saudi Public Investment Fund, signed a memorandum of understanding that highlights their commitment to advancing sustainable aviation practices and reducing environmental impact, supporting the Kingdom’s transition to a circular economy in line with Vision 2030.
As part of its 2035 goals, SIRC aims to divert 85 percent of industrial hazardous waste from landfills through recycling and treatment.
The waste sector also targets diverting 60 percent of construction and demolition waste, with 12 percent recycled, 35 percent reused, and 13 percent treated.
Under the partnership, the companies will collaborate on technology-driven operations and expand THC’s services into new sectors that align with sustainability objectives, according to the Saudi Press Agency.
Ziyad Al-Shiha, SIRC CEO, described the partnership as a step toward driving innovation, cutting emissions, and ensuring long-term environmental safety for the sector.
“This collaboration strengthens the Kingdom’s leadership in the global green economy and paves the way for a more sustainable future,” Al-Shiha said, adding that the deal aligns with broader efforts to position Saudi Arabia as a leader in sustainability and green economic initiatives.
Commenting on the collaboration, Arnaud Martinez, CEO of THC, said the initiative is part of his company’s strategy to minimize its carbon footprint.
Martinez added that the agreement is about turning ambitious ideas into tangible achievements that contribute to a sustainable future for aviation and the environment.
THC posted on its X account: “We are pleased to sign a memorandum of understanding with the Saudi Investment Recycling Co., with the aim of enhancing common interests in the waste management and recycling sector, and various environmental sectors in line with achieving the goals of Vision 2030.”
The investment recycling company, the largest industrial waste management company in the Gulf Cooperation Council with a fully integrated platform to handle, store, transport, treat, and safely dispose of the hazardous waste generated by industries, plans to divert 100 percent of municipal solid waste, recycling 81 percent and processing 19 percent for waste-to-energy purposes.
These efforts align with the ambitious targets set by the Waste Management National Regulatory Framework for 2035, including a 13-million-tonne reduction in carbon dioxide emissions, attracting SR6 billion ($1.6) billion in foreign investments, creating 23,000 jobs, and contributing $9.9 billion to the national gross domestic product.
Saudi rent now, pay later firm Rize closes $35m in equity and debt funding
- Company also plans to enhance its technological offerings, including automating leasing processes
- Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024
RIYADH: Saudi real estate technology company Rize has closed an SR132 million ($35 million) “Series A” funding round to expand its presence beyond the nation’s capital.
The round included a mix of equity and debt. funding and was led by Raed Ventures, with participation from SEEDRA Ventures, Aqar Platform, JOA Capital, Nama Ventures, and HALA Ventures.
The funding also featured a debt financing partnership with Partners For Growth to bolster Rize’s financial capabilities.
Given the high down payment required for tenants to secure a rental property in the Kingdom, the company has developed a model that enables tenants to pay annual rent in 12 monthly installments, while property owners receive the full amount upfront.
The rise in Saudi Arabia’s real estate financing underscores the sector’s increasing importance in the Kingdom’s economy, creating a strong foundation for innovative solutions like Rize’s “rent now, pay later” model.
“This investment represents a major turning point in our journey and reflects the investors’ confidence in our vision to develop the leasing sector,” said Ibrahim Balilah, CEO of Rize.
Founded in 2021 by Balilah and Mohammed Al-Fraihi, the Riyadh-based company aims to promote sustainability in the Saudi rental market and claims to have facilitated over SR500 million in total rental value through its platform.
The Series A investment will support Rize’s growth strategy, including expanding its presence beyond Riyadh into the Eastern and Western regions of Saudi Arabia.
The company also plans to enhance its technological offerings, including automating leasing processes via its app to improve user experience.
Al-Frahi, co-founder and chief technology officer of Rize, said: “We have worked hard to develop our internal technologies to enable the automation process and make the rental experience smoother. This investment round is a significant step to enhance our technologies and accelerate the company’s growth.”
Aqar Platform, one of the key investors and a major player in the proptech sector, plans to integrate Rize’s RNPL service into its platform, offering tenants more flexibility in payment options.
The collaboration is expected to enhance the leasing process and provide innovative solutions for users.
Omar Al-Majdouie, co-founder at Raed Ventures, said: “We believe in Rize’s ability to bring about a transformative change in the real estate leasing sector, not only by offering innovative services but also by enabling digital transformation in this important field.”
Waleed Al-Barrak, principal at SEEDRA Ventures, compared Rize’s growth trajectory to that of successful regional fintech leaders, like Tabby and Tamara.
“Rize is transforming the Saudi rental market and redefining the standards of how people rent. Its extraordinary growth mirrors the success stories of industry leaders,” Al-Barrak said.
Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024, reflecting a 13.29 percent year-on-year increase, according to data from the Saudi Central Bank.
The growth was driven by retail and corporate lending, with corporate loans jumping 22 percent to SR189.6 billion, while lending to individuals accounted for 78 percent of the total at SAR 656.88 billion, growing at 11.02 percent annually.
Real estate loans now make up nearly 30 percent of the total loan portfolio of Saudi banks, which stood at SR2.85 trillion by the end of the third quarter.
UAE’s money supply M1 increases 1.5% to $247.7bn
RIYADH: The UAE’s M1 money supply saw a monthly rise of 1.5 percent at the end of October, reaching 909.9 billion dirhams ($247.7 billion), according to the latest figures released by the country’s central bank.
The summary report revealed the rise was primarily driven by a 14.9 billion dirhams increase in monetary deposits, which offset a 1.3 billion dirhams decline in currency circulating outside banks.
M1 supply includes liquid money that can be used for spending or transactions. It consists of cash, including coins and paper bills, and funds in checking accounts that are readily accessible for daily transactions.
The UAE’s M2 money supply, which includes M1 and quasi-monetary deposits, rose by 0.9 percent, reaching 2.27 trillion dirhams at the end of October, up from 2.25 trillion dirhams in September.
This growth was driven by an increase in M1 and a 7.5 billion dirhams rise in quasi-monetary deposits.
The country’s M3 money supply, which encompasses M2 and government deposits, grew by 1.3 percent, reaching 2.75 trillion dirhams at the end of October, compared to 2.72 trillion dirhams in September.
The report highlighted that the increase was largely attributed to the expansion of M2 and a 13.8 billion dirhams rise in government deposits.
The M3 money supply is calculated by adding government deposits held at banks operating in the UAE and the Central Bank to the M2 money supply.
The UAE’s monetary base saw a slight decline of 0.1 percent, falling to 743 billion dirhams at the end of October from 743.5 billion dirhams in September.
The decrease was primarily driven by a 11.4 percent drop in banks’ and other financial corporations’ current accounts and overnight deposits with the central bank.
This decline overshadowed increases in currency issuance by 0.8 percent, reserve accounts by 0.05 percent, and monetary bills and Islamic certificates of deposit by 6.2 percent.
The UAE’s gross banking assets, including bankers’ acceptances, grew by 1.3 percent, reaching 4.46 trillion dirhams at the end of October, up from 4.4 trillion dirhams in September.
The UAE’s gross credit rose by 0.6 percent, reaching 2.17 trillion dirhams at the end of October, compared to 2.16 trillion dirhams in September.
This increase was driven by a 0.6 percent rise in domestic credit and a 0.7 percent increase in foreign credit.
Domestic credit growth was driven by a 0.2 percent increase in lending to the government sector, a 3.0 percent rise in lending to the public sector, and a 0.1 percent increase in lending to the private sector, which outweighed a 1.8 percent decline in credit to non-banking financial institutions.
The country’s total bank deposits climbed by 1.5 percent, reaching 2.80 trillion dirhams at the end of October, up from 2.76 trillion dirhams in September.
This growth was driven by a 1.2 percent rise in resident deposits and a 4.7 percent increase in non-resident deposits.
The increase in resident deposits was attributed to higher deposits from the government sector by 2.3 percent, government-related entities by 3.6 percent, and the private sector by 1.1 percent, which offset a 13 percent decline in funds from non-banking financial institutions.
Kuwait’s CPI rises 2.5% in December amid inflationary pressures
- CPI saw 0.45% increase compared to November
- Some sectors witnessed significant price hikes, others remained stable or saw minor changes
RIYADH: Kuwait’s Consumer Price Index climbed 2.5 percent year on year in December, reaching 135.2, fueled by higher costs across miscellaneous goods and services, food and beverages, and clothing and footwear.
The CPI showed relatively marginal growth monthly, recording a 0.45 percent increase compared to November, reflecting inflationary pressures across various sectors, according to the country’s Central Statistical Bureau.
While the Gulf state’s annual inflation rate remains among the lowest globally, it outpaced several Gulf Cooperation Council countries, including Saudi Arabia, where the CPI rose by 1.9 percent year on year in December.
This comes as Kuwait continues to recover in its non-oil sector, supported by easing inflation. Its non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08 percent increase from November, according to data from the Ministry of Commerce and Industry.
“This indicator is used as a measure of the changes in the purchasing power of the currency, to determine the interest rates and liquidity by the Central Bank of Kuwait, to support the adoption of appropriate economic decisions by the official bodies, and for the preparation of national accounts at constant prices,” the Central Statistical Bureau report said.
The prices of miscellaneous goods and services rose by 5.43 percent year-on-year in December, while the food and beverages category saw a 5 percent annual increase.
The cost of essential food items, including cereals, bread, meat, poultry, fish, and seafood, all experienced price hikes. Dairy products, oils, fats, and fresh produce also saw growth. Monthly inflation in this category was 0.39 percent compared to November.
Housing services, which include rent and maintenance, increased by 0.90 percent annually and 0.41 percent monthly, reflecting higher housing costs across the country.
Clothing and footwear prices witnessed a 5.13 percent annual increase and a 0.35 percent rise from November.
The health sector recorded a 4 percent annual rise in costs, with outpatient and hospital services driving the increase. Monthly, this category saw a 0.73 percent rise.
Transportation saw a 0.57 percent monthly increase, though its annual rate decreased by 1.47 percent, indicating a mixed trend in fuel and vehicle costs.
While some sectors witnessed significant price hikes, others remained stable or saw minor changes.
Cigarettes and tobacco prices remained stable monthly, increasing by a mere 0.07 percent annually. Communication costs also held steady, with an annual rise of just 0.88 percent.
Education costs rose slightly by 0.71 percent year-on-year. Recreation and culture recorded a 2.64 percent annual increase, with a 0.53 percent rise compared to November.
Restaurants and hotels saw a 2.03 percent annual increase, while miscellaneous goods and services took the lead among all non-food categories.
In a recent report, the International Monetary Fund highlighted Kuwait’s recovery in the non-oil sector amid easing inflation, but noted a 1.5 percent gross domestic product contraction in the second quarter of 2024, driven by a 6.8 percent drop in the oil sector.
The central bank held interest rates at 4 percent in September, citing the continued stability and strength of the country’s monetary and financial conditions.
