Saudi Arabia ‘committed to global economic prosperity,’ says Finance Minister Al-Jadaan

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Finance Minister Mohammed Al-Jadaan stresses a point in his keynote address at the opening session of Euromoney Saudi Arabia Conference 2019. (AN photo/Ahmed Fathi)
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Delegates at the 14th edition of the Euromoney Saudi Arabia Conference 2019 in Riyadh on Wednesday. Senior government officials and ministers attended the event. (AN photo/Ahmed Fathi)
Updated 19 September 2019
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Saudi Arabia ‘committed to global economic prosperity,’ says Finance Minister Al-Jadaan

  • Government spending on economic and social development has increased over the past year

RIYADH: Saudi Arabia is committed to working with other nations toward achieving global economic prosperity, Finance Minister Mohammed Al-Jadaan said in his keynote address at the opening of the 14th edition of the Euromoney Saudi Arabia Conference here on Wednesday.

Al-Jadaan also said that the Kingdom’s upcoming presidency of the G20 next year will “consolidate the Kingdom’s international standing and affirm its leadership in supporting the stability of the global economy.”

He added: “Under Saudi Vision 2030 and the Financial Sector Development Program, Saudi Arabia is keeping pace with global developments and achieving qualitative leaps in the field of financial services, in line with business and service development. The growth of talented and active youth, as well as an increase in women’s participation in the labor market, are also important elements toward achieving our goals.”

The minister also welcomed Saudi Arabia’s inclusion in the Financial Action Task Force (FATF), insisting that the Kingdom’s financial sector is “committed to introducing further reforms in order to expand financial services and implement legislation and measures to combat money laundering and the financing of terrorism.”

“Our progress in these areas recently led to the Kingdom’s inclusion in the FATF, taking its place alongside 37 other countries, and it was the first Arab country to (do so),” he added.

Al-Jadaan went on to explain that government spending on economic and social development has increased over the past year.

“The total expenditure growth, in both the operational and capital sectors, reached nearly 16.1 percent in 2018, while the increase in the first half of 2019 reached about 6.3 percent. At the same time, non-oil revenues increased during 2018 by approximately 15.2 percent and the increase continued during the first half of the year by 14.4 percent as a result of the improvement of economic activity and continued implementation of reforms and initiatives aimed at developing revenues and diversifying their sources,” he said.

The budget deficit during the first half of the year amounted to SR5.7 billion ($1.52 billion), compared to SR41.7 billion in the same period in 2018, while the real GDP growth rate in Q1, 2019 was 1.7 percent, compared to 1.4 percent in Q1, 2018, he said. The Kingdom’s non-oil sector grew by 2.1 percent, driven by the private sector’s growth of 2.3 percent, compared to 1.7 percent in the same quarter last year, while FDI inflows increased by 23.8 percent in the first quarter of the current year with increased investment opportunities for the private sector.

The total credit facilities provided by banks and financing companies to SMEs in the first half of 2019 amounted to SR113 billion — an increase of 11.6 percent against the corresponding period last year.

Banking performance also improved, he said, with the total assets and liabilities of commercial banks during Q2, 2019 reaching SR2.4 trillion, an increase of 3 percent — equivalent to SR 69.1 billion — compared to an increase of 0.04 percent in the corresponding quarter of the previous year.

“On the other hand, the demand for investment in domestic and international debt issues increased by more than three times during the first half of the year,” the finance minister said.

He added that the government’s first bond denominated in euros —  issued in July —  was oversubscribed by over four times, adding, “The nominal value of government sukuk was reduced to SR1,000 in order to diversify the investor segment and enhance trading and individual savings.”

The minister concluded by congratulating the Kingdom and Saudi Aramco for reestablishing full-capacity oil production after the recent drone attacks on oil facilities.

“I would like to take this opportunity to congratulate the country, and Aramco in particular, for bringing production back to normal which proves our ability to deal effectively and efficiently with the unprecedented crisis,” he said.

Minister of Commerce and Investment Majid Al-Qassabi also gave a speech, in which he said that the Kingdom is witnessing a qualitative leap in attracting investors, explaining that 259 licenses for foreign investment were granted in 2015, while 792 have been issued so far this year.

The Kingdom has “undertaken comprehensive reforms to improve the business sector,” he continued, which has led to an almost 60 percent increase in the number of commercial enterprises registered with the Ministry of Commerce and Investment over the last four years —  meaning there are now 1,027,000 enterprises registered, compared to 650,000 in 2015.

“The Kingdom has worked on a number of tracks — all of which are aimed at creating an environment conducive to foreign investors: Government restructuring, combating bureaucracy, improving procedures, and preparing legislation that will motivate investors,” said the minister.

He noted that Saudi Vision 2030 has created new sectors for investment and given investors an opportunity to enter new areas, including entertainment, tourism, sports, and logistics.

“We are on a continuous journey of development,” he said. “Vision 2030 is the compass by which we are (navigating), setting goals, and directing investments.”

Al-Qassabi stressed the importance of the SME sector, calling it “the first engine of the country” and explaining that the Kingdom has licensed 50 accelerators and 49 incubators to help support it.

Capital Market Authority (CMA) chairman Mohammed El-Kuwaiz said the CMA is continuing to make “huge advancements” and highlighted the importance of new capital markets laws recently approved by the Cabinet.

“These new laws have two priorities, firstly to protect investors through improved mechanisms for compensation, strengthening the independence of judicial committees, increasing the scope of reporting, rewarding those who report violations and strengthening penalties to deter violators, and secondly to enhance the capital market by modifying financial organization through the introduction of a depository center and the creation of new categories including the establishment of a ‘clearing house’ to create a new derivatives market,” El-Kuwaiz said.

He also outlined how judicial procedures in the capital market have been strengthened. “Prosecution processing time to deal with financial disputes has been reduced from 24 to 10 months, with the aim of a further reduction to 6 months,” he said, adding that many other reforms have also been completed, including the automation of judicial processes for claims. “We are also moving toward the introduction of group claims, which will also help to speed up the process,” he explained.

He also mentioned a range of positive indicators contributing to the growth of the capital market: “There has been an increase of 49 percent in investors in close-end funds, an increase in the index of 6 percent compared to 2018 and foreign cash flow in the capital market has reached SR76 billion.”

The opening day of the Euromoney Saudi Arabia Conference highlighted the transformation of financial institutions in the Kingdom, with a focus on how emerging technologies are driving the explosion of FinTech fueled by digitally savvy millennials.

This year also saw the introduction of an Oxford Union-style debate in which Ammar Al-Khudairy, chairman of Samba Financial Group, presented his vision of the future for the traditional banking sector while Ghela Boskovich, founder of FemTechGlobal, spoke on future trends in e-banking.

The conference included three more new initiatives aimed at providing a more interactive experience for visitors. In the Tech Tent, local and international FinTech companies set out their stalls; the Knowledge Hub ran live briefings on Blockchain, big data and machine learning; while the Finance Lab provided a live simulation of global markets for students and attendees.


Saudi Arabia’s urban planning on display at WUF

Updated 43 sec ago
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Saudi Arabia’s urban planning on display at WUF

  • The pavilion highlighted prominent Saudi infrastructure development initiatives, in line with international quality standards, that meet the needs of residents and visitors of Saudi cities

CAIRO: The Saudi pavilion at the World Urban Forum in Cairo this week hosted a series of workshops and bilateral meetings on the Kingdom’s strategies and projects in comprehensive urban planning.

The Saudi presence also underlined the positive effect of these strategies on achieving sustainable urban development and improving the quality of life in Saudi cities, in line with the goals of Vision 2030.

Through representatives and officials of the Ministry of Municipal and Rural Affairs and more than 30 national entities, the Saudi pavilion showed the Kingdom’s efforts to adopt and expand comprehensive urban planning practices focused on sustainability, and apply the requirement to study environmental impact in municipal and investment projects.

The meetings highlighted the concept of smart municipalities aimed at improving the quality of municipal services in Saudi regions and adopting modern technologies and enhanced municipal regulations for smart city policies, as well as the use of artificial intelligence technologies and data in improving the quality of life.

The pavilion highlighted prominent Saudi infrastructure development initiatives, in line with international quality standards, that meet the needs of residents and visitors of Saudi cities, the Saudi Press Agency reported, in addition to urban landscape development projects and visual distortion treatment projects.

 

 


Saudi foreign minister, Blinken discuss regional crises

Updated 08 November 2024
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Saudi foreign minister, Blinken discuss regional crises

  • Two discussed ongoing efforts to address the issues in Gaza and Lebanon

RIYADH: Saudi Minister of Foreign Affairs Prince Faisal bin Farhan spoke on the phone on Friday with US Secretary of State Antony Blinken, Saudi Press Agency reported.

During the call, they reviewed regional issues, with a particular focus on Gaza and Lebanon and ongoing efforts to address the issues there, SPA added.

In a separate call on Friday with UAE Foreign Minister Sheikh Abdullah bin Zayed Al-Nahyan, Blinken stressed the need to stop the fighting in Sudan and the need to support efforts to form a civilian government, the State Department said.

Blinken also discussed the need to expand humanitarian access to Sudan and thanked the UAE for its provision of aid for Gaza and Lebanon, according to a State Department statement.


Saudi health minister unveils new healthcare projects in Qassim

Updated 7 sec ago
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Saudi health minister unveils new healthcare projects in Qassim

  • Saudi Health Minister’s visit marked the inauguration of several healthcare projects, including 54 initiatives valued at more than SR 448 million ($119.4 million)

BURAIDAH: Saudi Health Minister Fahad Al-Jalajel visited Qassim to review several healthcare projects designed to enhance the quality, efficiency and accessibility of medical services for residents.

These initiatives align with the objectives of the Health Sector Transformation Program, a key component of the Kingdom’s Vision 2030, which aims to foster a “vibrant society” enjoying a healthy and prosperous life, the Saudi Press Agency reported.

His visit marked the inauguration of several healthcare projects, including 54 initiatives valued at more than SR 448 million ($119.4 million). Among these were key projects under the Qassim Health Cluster, such as the dental center in Unaizah, along with community-supported initiatives worth nearly SR102 million.

Highlights included the Prince Faisal bin Mishaal Fertility Center in Buraidah, the Abdullah Saleh Al-Othaim Diabetes Treatment Center at Al-Rass General Hospital, the Al-Rajhi Bank Cardiac Catheterization Center, and several other specialized healthcare facilities.

 


Saudi Arabia highlights global humanitarian efforts at G20 Parliamentary Summit in Brazil

Mishaal bin Fahm Al-Sulami, deputy speaker of Saudi Arabia’s Shoura Council, took part in the 10th Summit of G20 Parliamentary S
Updated 08 November 2024
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Saudi Arabia highlights global humanitarian efforts at G20 Parliamentary Summit in Brazil

  • Mishaal bin Fahm Al-Sulami, deputy speaker of Saudi Arabia’s Shoura Council, made the comments during the 10th Summit of G20 Parliamentary Speakers held in Brazil

RIYADH: Mishaal bin Fahm Al-Sulami, deputy speaker of Saudi Arabia’s Shoura Council, commended Brazil’s initiative to launch the Global Alliance to Combat Hunger and Poverty, affirming that Saudi Arabia has been a member of the alliance since May 2024, the Saudi Press Agency reported.

This came during the 10th Summit of G20 Parliamentary Speakers held in Brasilia, Brazil, focusing on the theme “Parliaments for a Fair World and a Sustainable Planet.”

Al-Sulami led the Kingdom’s delegation at the international gathering, revealing that Riyadh would host the UN Conference on Land and Drought in December.

The deputy speaker elaborated on Saudi Arabia’s comprehensive approach to addressing poverty and hunger through the efforts of the government and the Shoura Council, which have created a social safety net through various support programs, the Social Development Bank, and the contribution of charitable organizations.

On the international front, Saudi Arabia’s humanitarian contributions have been substantial, SPA reported. From 1975 to 2024, the Kingdom provided nearly $133 billion in development assistance, reaching 171 countries worldwide. This aid has supported over 7,090 humanitarian and development projects. Currently, the King Salman Humanitarian Aid and Relief Centre manages 1,700 projects aimed at combating hunger and poverty around the world.

Al-Sulami highlighted Saudi Arabia’s commitment to workplace equality through its adoption of ILO Conventions 100 and 111. The Kingdom’s laws ensure equal pay and employment opportunities, with no discrimination between men and women in jobs and wages. These efforts have yielded significant results, with female participation in the labor market reaching 37 percent by 2023, exceeding expectations set in the Kingdom’s Vision 2030.

The Kingdom has also provided $187 million in urgent relief to Gaza, along with $1.6 billion in development and humanitarian assistance, according to SPA.

Saudi Arabia launched the Global Alliance for the Two-State Solution in partnership with other Arab and Islamic countries, the EU, and Norway, hosting its first meeting in Riyadh on Oct. 30, 2024. Following the extraordinary Arab-Islamic Summit held in Riyadh on Nov. 11, 2023, the Kingdom announced another edition of the summit scheduled for Nov. 11, 2024. These efforts aim to achieve an immediate ceasefire, end the Israeli occupation, provide relief to the Palestinian people, and establish an independent Palestinian state with East Jerusalem as its capital, in line with UN Security Council resolutions.

The P20 summit addressed several crucial topics, including parliamentary contributions to fighting hunger, poverty, and inequality; the role of parliaments in sustainable development; and adapting parliamentary systems to 21st-century governance challenges. Iman Al-Jubreen, a member of the Shoura Council delegation, presented a working paper on women’s representation in decision-making positions, sharing Saudi Arabia’s experience in women’s empowerment.


Hundreds of events set to wow audiences at Jazan’s winter festival

Updated 08 November 2024
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Hundreds of events set to wow audiences at Jazan’s winter festival

  • Al-Ghazwani said this year’s winter season would last for 90 days
  • The calendar includes the international book fair, craft bus, Saudi international coffee festival and Jazan international festival

RIYADH: Audiences will be spoilt for choice at the Jazan Winter Festival, with 300 fantastic events on the program, reported the Saudi Press Agency.
General supervisor Yahya bin Jaber Al-Ghazwani told a press conference that the festival, under the patronage of Jazan Governor Prince Mohammed bin Nasser bin Abdulaziz, included 200 diverse events implemented by the region’s secretariat and 100 by other government agencies and departments.
Al-Ghazwani said this year’s winter season would last for 90 days with events taking place at 42 sites across Jazan city and the region’s governorates.
The calendar includes the international book fair, craft bus, Saudi international coffee festival and Jazan international festival for performing arts, along with concerts, cultural events, forums, poetry evenings, sports events, waterfront events, and park and heritage events.
On Thursday, the skies above Jazan’s North Corniche witnessed the launch of more than 3,000 balloons in various colors to celebrate the Jazan Winter Festival 2025.
Hundreds of residents, visitors and volunteers marveled at the spectacle, which included artistic formations of illuminated balloons.
The event marks the start of a busy winter season aimed at promoting local tourism in an atmosphere of joy and entertainment.