LONDON: Banque Saudi Fransi shares fell by 3.1 percent on Sunday after a rise in impairments led to a drop in profits.
The increase in impairments was the main factor in a 6.4 percent fall in profit last year to SR3.31 billion ($882.56 million), the Riyadh-based lender said in a filing to the Tadawul.
Overall operating expenses spiked by more than 14 percent last year. “This increase in total operating expenses was primarily due to higher impairment charge for credit losses and for other financial assets,” the bank said in the statement.
However, the credit losses were partially offset by a reduction in other operating expenses at the bank, including rent, salaries and administrative costs.
Impairments for credit losses jumped by 69.5 percent over the quarter to SR878 million. The increase was even more pronounced over the year as total impairments rose by more than 80 percent to SR1.2 billion.
While successive US interest rate rises have helped regional lenders boost their interest income on loans in the past year, they are also coming under pressure from a weaker oil price and regional economic slowdown that is hurting many of their customers.
A wave of banking sector consolidation is underway in both the UAE and Saudi Arabia as lenders seek to trim costs
in response to changing economic realities.
Saudi Arabia’s biggest lender, National Commercial Bank, revealed in December that it was in takeover talks with Riyad Bank.
Meanwhile, in the UAE, Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank have also agreed a three-way merger, creating the third-largest bank in the country.
Despite the tougher economic conditions across the region, some analysts remain upbeat on the performance of the banking sector in Saudi Arabia.
“The challenges for Saudi banks in 2019 include growing loan books outside of retail mortgages; containing any increase in cost of funds if oil prices remain weak; driving cost efficiency through digitization; and countering competition from digital-payment platforms,” Aqib Mehboob, an analyst at Saudi Fransi Capital in Riyadh, told Bloomberg last month.
“The SABB-Alawwal merger and potential NCB and Riyad Bank merger may drive other banks to evaluate opportunities to gain scale,” he said.
Saudi Fransi hit by impairment rise
Saudi Fransi hit by impairment rise
Pakistani ministry signs agreement with National Testing Service for selection of Hajj staff
- Pakistan selects hundreds of assistants via competitive process every year to facilitate local pilgrims
- Pakistan has received 82,000 applications for next year’s Hajj pilgrimage under government scheme
ISLAMABAD: The Pakistani ministry of religious affairs has signed an agreement with the National Testing Service, which will hold exams for the selection of supervisors and assistants for next year’s Hajj pilgrimage, the ministry said on Thursday.
Pakistan selects hundreds of assistants and doctors from federal and provincial government departments via a competitive process every year to facilitate local pilgrims in performing the rituals of the annual pilgrimage in Saudi Arabia.
Pakistan had received 82,000 applications for next year’s Hajj under the government scheme by Tuesday when the submission deadline ended. Saudi Arabia has allotted Pakistan a quota of 179,210 pilgrims, to be divided equally between government and private schemes. The government extended the deadline for applications twice this month, first from Dec. 3 to Dec. 10, and then to Dec. 17, as it aims to fill over 89,000 seats under the federal government quota.
“Like last year, this year too, the selection of Hajj Assistants who will be sent on Hajj duty will be done through National Testing Service,” the religious affairs ministry said.
“According to the agreement, staff will be appointed on the basis of merit as per the federal and provincial quotas, in which a specific ratio of new and experienced assistants has been kept … Government employees and officers of Scale 7 to 18 will be eligible to apply.”
The ministry said it would “soon” announce the selection through an advertisement.
The ministry of religious affairs trains Hajj assistants and pilgrims every year ahead of their departure to Saudi Arabia to ensure all aspects of the pilgrimage process, including food, transportation, and accommodation in Makkah and Madinah, run smoothly.
Pakistan last year sent 550 Hajj assistants and 400 doctors and paramedical staff to Saudi Arabia to facilitate pilgrims.
AI cannot replace human creativity in literature, expert says
- Dr. Anas Al-Ghamdi: Certain fields will benefit by using AI, but it cannot create great literature
- Al-Ghamdi: When you read a text translated by a machine, you feel the translator’s feelings, not the writer’s
JEDDAH: Artificial intelligence cannot replace the creativity of human beings in literature, according to an expert attending the Jeddah Book Fair 2024.
Dr. Anas Al-Ghamdi, an academic, researcher and author specializing in AI, made the statement in a discussion during a symposium titled: “Artificial Intelligence and the Future of the Book.”
The session was moderated by Mohammed Basalama, an entrepreneur in the cultural sector, who opened the symposium by raising a few questions about the impact of artificial intelligence in the book sector, asking: Will AI be a partner that enhances creativity or a competitor that threatens the human values of literary texts?
He mentioned the main themes of the symposium, which included: the role of AI in improving writing and publishing, its impact on literary creativity and the human value of books, as well as the ethical and legal challenges related to the ownership of produced texts, in addition to using AI as a tool to enhance innovation rather than compete with it.
Al-Ghamdi replied by saying that no doubt AI has become an integral part of life and it can provide a huge amount of information to people in no time, but it cannot create special feelings and the free flow of imagination as human authors do in their writings.
“If we do not use it, others will. Of course, certain fields will benefit by using AI, but it cannot create great literature,” he said.
Al-Ghamdi said that there is a role for AI in enhancing the work of publishing houses by improving marketing, production, and sales.
But, he said, machine translation still suffers from emotional gaps, saying: “When you read a text translated by a machine, you feel the translator’s feelings, not the writer’s.”
The symposium explored how modern technology can reshape the writing and publishing experience, emphasizing the need to use AI as a tool to support human creativity.
It also discussed the ethical and professional challenges related to the ownership of texts produced by AI, while presenting innovative visions for employing this technology to achieve a sustainable future that combines human creativity and technological innovation.
Al-Ghamdi affirmed that AI is not a substitute for human creativity, but a tool that can enrich this creativity if used properly.
Pakistani president calls for greater parliamentary cooperation with Saudi Arabia
- Chairman of Saudi Arabia’s Shura Council is on three-day visit to Pakistan
- Council is legislative body that advises the king and his regulatory authority
ISLAMABAD: President Asif Ali Zardari on Thursday met Dr. Abdullah bin Mohammed bin Ibrahim Al-Sheikh, the chairman of Saudi Arabia’s Shura Council, and discussed enhancing parliamentary cooperation and high-level exchanges with the Kingdom.
The chairman of the Shura Council, a legislative body that advises the king and his regulatory authority, is on a three-day visit to Pakistan, during which he has met Prime Minister Shehbaz Sharif, Senate Chairman Yousaf Raza Gillani, National Assembly Speaker Ayaz Sadiq and others.
“President Zardari has emphasized the need for enhancing parliamentary cooperation and high-level exchanges with the Kingdom of Saudi Arabia (KSA) to deepen the fraternal relationship between Pakistan and KSA,” the president’s office said in a press release on Thursday after he met the visiting dignitary.
“He reaffirmed Pakistan’s commitment to further strengthening economic, political, and cultural ties with KSA for the mutual benefit of both nations … both sides emphasized the need to transform the longstanding bilateral relationship into a more robust and strategic partnership.”
Zardari also expressed concern over the conflict in the Middle East, saying Pakistan stood in solidarity with “brothers and sisters” from Palestine, Lebanon and Syria.
Pakistan and Saudi Arabia are longtime allies, with Islamabad seeking closer economic, defense and security ties with the Kingdom, host to nearly 2.5 million Pakistani expatriates and the largest source of remittances for the cash-strapped South Asian nation.
European Muslims arrive in Madinah
- The Ministry of Islamic Affairs received the pilgrims, who come from 14 different countries
- The 250-strong group will visit the Prophet’s Mosque and tour historic sites
RIYADH: A new group of Muslim pilgrims arrived in the holy city of Madinah from Europe on Thursday to perform Umrah as part of the Custodian of the Two Holy Mosques Guests Program for Hajj, Umrah and Visit.
The Ministry of Islamic Affairs, Dawah and Guidance, which supervises the program, received the 250 visitors, who come from 14 different countries. The ministry will provide the group services during their stay.
As well as visiting the Prophet’s Mosque and Quba Mosque the pilgrims will tour historic sites including the King Fahd Glorious Qur'an Printing Complex, the Uhud Martyrs’ Cemetery, and the International Fair and Museum of the Prophet’s Biography and Islamic Civilization.
They will then head to the holy city of Makkah to perform Umrah rituals.
Balancing act required from Renard and Saudi at 26th Arabian Gulf Cup
- Green Falcons will be taking a strong squad to Kuwait, but one eye will be on the resumption of the 2026 World Cup qualifiers
- Bahrain and Iraq will see this tournament the same way as Saudi — a chance to lift a trophy but also to get ready for March’s crucial qualifiers
The last time the Arabian Gulf Cup rolled around was just after the 2022 World Cup and it was almost an afterthought for Saudi Arabia and head coach Herve Renard, especially as the Saudi Pro League was in full swing.
Not this time. As the 26th edition kicks off this week, all eyes are on Kuwait and whether the Green Falcons can find the form to lift the trophy and also ignite their faltering 2026 World Cup qualification campaign.
Winning the Gulf Cup for the first time since 2004 will be a big deal but the excitement and plaudits would quickly fade if the team miss out on the expanded 48-team World Cup. Renard has a tricky test to get the balance right: achieve results but also look ahead. Another failure would increase the already substantial pressure surrounding Saudi Arabia.
Qualification for the 2026 World Cup has not been going well. After six games in the third round, Saudi Arabia have six points, with just that one win in China (courtesy of a last-minute Hassan Kadesh header) to look back on. With only the top two certain of going to the World Cup and Japan already nine points clear, the other five teams are separated by just a single point. It is going to be a brutal race for second and if the Green Falcons do not improve before March’s games then everything is in doubt.
The Gulf Cup is also important for Renard. The Frenchman returned in October to replace Roberto Mancini. Renard may only have ended his first spell just over 18 months earlier, but he needs time to get to grips with the team. His first game in November was a battling 0-0 draw in Australia, an encouraging start that was quickly followed by a 2-0 loss at the hands of Indonesia in Jakarta.
Against that background comes the Gulf Cup. There are no Saudi Pro League games meaning that, unlike last time, Renard will take his strongest side to compete in the eight-team tournament that is split into two groups of four with the top two going into the semis. Saudi Arabia are in Group B and kick off against Bahrain on Sunday — a rival for that second spot in World Cup qualification — before Yemen on Dec. 25 and Iraq three days later.
Even assuming, as expected, Yemen end up fourth and last, it should be a tough few days. Bahrain and Iraq will see this tournament the same way as Saudi — a chance to lift a trophy but also to get ready for March’s crucial qualifiers. Getting to the final is not just an objective in its own right but also means five competitive games and valuable preparation time.
The biggest issue for Saudi Arabia is obvious: goals, or rather the lack of them. Three scored in six qualifiers is a shocking statistic and none in the last four is even worse. Defender Kadesh scored twice from set pieces in the second matchday against China which followed Musab Al-Juwayr’s equaliser against Indonesia in the opening game. The strikers have not found the target at all. If these issues continue then Saudi Arabia are going to miss out on the World Cup.
Firas Al-Buraikan, Saleh Al-Shehri and Abdullah Al-Hamdan are all familiar names while Abdullah Radif is an increasingly regular face at international level. Renard needs to get these forwards firing, or at least one of them.
There is some encouraging news. In this week’s friendly, played behind closed doors to the media as well as fans, Saudi Arabia defeated Trinidad and Tobago 3-1. Both Al-Shehri and Al-Hamdan were on target. With the poor results of late and the negative publicity around the team, it was perhaps a wise decision to make the match low-key and Renard will be hoping that his strikers now have a little more confidence.
The injury to Salem Al-Dawsari makes it all a little harder. The team’s talisman and best creative talent is likely to miss the early stages, meaning that others will have to step up. There may be a chance for some younger talents such as Ayman Fallatah, Abdulmalik Al-Oyayari, Abdulaziz Al-Othman and Mohammed Al-Qahtani to make a name for themselves but the old stalwarts at the back such as Ali Al-Bulaihi, Sultan Al-Ghannam (though these two missed training Wednesday due to minor ailments) and Yasser Al-Shahrani need to play their part.
In short, the pressure is on. The Gulf Cup could be the catalyst for change that Renard and Saudi Arabia are looking for after a disappointing 2024.
