HANOI: A summit of Southeast Asian and other international leaders scheduled in Vietnam early next month has been postponed until end-June due to worries about coronavirus, Vietnam’s Ministry of Foreign Affairs said on Thursday.
Vietnamese Prime Minister Nguyen Xuan Phuc has informed leaders of other Southeast Asian countries about the postponement, the ministry said.
The 36th summit of the 10-member Association of Southeast Asian Nations (ASEAN) had been scheduled to take place on April 6-9 in Vietnam, the group’s chair this year.
The postponement decision came after Vietnam announced on March 17 that it would introduce mandatory quarantine for all visitors from the United States, Europe and ASEAN countries and suspend the issue of new visas for all foreign nationals.
The coronavirus pandemic, which has killed nearly 9,000 people worldwide and infected 76 people in Vietnam as of late Thursday, already forced a meeting between ASEAN and the United States slated for March 14.
The ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
ASEAN summit in Vietnam postponed until end-June over coronavirus
ASEAN summit in Vietnam postponed until end-June over coronavirus
- ASEAN consists of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam
Saudi bank credit races to $834bn in April as companies out-borrow households
RIYADH: Saudi banks’ outstanding loan portfolio climbed to SR3.13 trillion ($833.7 billion) at the end of April, up 16.51 percent from a year earlier and marking the fastest annual expansion since mid-2021.
According to figures from the Saudi Central Bank, also known as SAMA, the double-digit jump adds roughly SR443 billion in new credit over 12 months and underscores how the Kingdom’s project-driven growth model is reshaping balance-sheet priorities across the banking system.
Behind the headline figure is a striking pivot toward business customers. Corporate borrowing jumped 22 percent year on year to SR1.72 trillion, lifting its share of total credit above 55 percent, while loans to individuals rose a more measured 10.4 percent to about SR1.4 trillion.
Real estate developers remain the largest borrowers, accounting for 21.77 percent of outstanding corporate credit. This division was followed by the wholesale and retail trade sector at 12.29 percent, utilities, including electricity, gas, and water, at 10.98 percent, and manufacturing, which is close behind at 10.9 percent.
Within the fastest-growing niches, transport and storage finance soared 47.5 percent to SR67.6 billion, education credit expanded 44.8 percent to SR9.5 billion, real-estate borrowing increased nearly 39 percent, and loans to financial services and insurance firms jumped 35.1 percent to SR159.9 billion, according to SAMA.
Vision 2030 projects drive demand
Large national projects are driving most of the new business borrowing. Huge developments, such as NEOM, the Red Sea resort, Diriyah, and King Salman International Airport, require long-term bank loans to enable builders and suppliers to continue their operations.
Newer industries, including green hydrogen plants and data centers, utilize short-term credit to cover their costs while they are being established.
At the same time, home loan growth is slowing because many families took advantage of subsidized Sakani mortgages between 2021 and 2023.
A March report by JLL says Saudi Arabia’s non-oil economy should grow 5.8 percent in this year, up from 4.5 percent in 2024.
JLL expects the real estate market to be worth about $101.6 billion by 2029, an average rise of 8 percent a year, and noted that Grade-A offices in Riyadh are almost fully occupied, pushing prime rents to $609 per sq. meter.
Such conditions translate directly into bank-financed demand for land acquisition, infrastructure outlays and bridging loans for developers racing to deliver stock ahead of the FIFA World Cup 2030 and Expo 2030.
Although real-estate developers still claim the largest slice of corporate credit, another borrower group is accelerating just as quickly: insurers. As the property boom feeds through to compulsory project coverage and fast-growing medical and motor lines, the insurance industry’s need for cash and capital is rising sharply.
According to KPMG’s Saudi Arabia Insurance Overview 2025, sector revenue jumped 16.9 percent year on year in the third quarter of 2024 as compulsory medical cover, brisk motor sales, and a wave of big property projects swelled premium volumes and claims reserves. The same report flags heavy spending on “technological innovation” as firms roll out IFRS-17 systems and digital sales platforms.
Under SAMA’s rulebook, however, ordinary loans or bond proceeds cannot be counted toward an insurer’s solvency margin unless the central bank gives written approval, and only Basel-style Tier-2 subordinated instruments qualify as supplementary capital.
Facing larger day-to-day cash needs, significant IT expenditures, and tighter capital buffers, alongside a regulator-driven wave of mergers that has already prompted players like Amana Cooperative and ACIG to explore tie-ups to gain scale, insurers are increasingly turning to banks for revolving credit lines and subordinated sukuk financing.
The funding strain is now visible in the monetary statistics. Outstanding bank credit to “financial and insurance activities,” registering one of the fastest growth rates of any sector, reflecting a mix of liquidity borrowings.
The education sector is also borrowing heavily to meet Vision 2030 targets. April’s EDGEx 2025 expo in Riyadh attracted over 20,000 delegates and showcased private-school growth plans that could lift the non-state share of enrolment from roughly 17 percent to 25 percent within five years.
New digital platforms such as Madaris promise to streamline admissions and tuition payments, while PwC’s purchase of Saudi consultancy Emkan underscores the sector’s investment appeal. These dynamics help explain why bank lending to education providers is growing at more than four times the system average.
Funding and liquidity
Rapid corporate demand poses funding challenges. Fitch projects that Saudi bank lending will rise by 12 percent to 14 percent in 2025, again surpassing deposit growth and stretching a funding shortfall that had already reached roughly SR0.3 trillion in 2024.
For now, liquidity remains comfortable. The loan-to-deposit ratio stands near 82.41 percent in April, and non-performing loans hover below 1.5 percent, according to SAMA data, thanks in part to stricter underwriting and the central bank’s early-warning analytics.
Interest rates’ dual impact
Contrary to conventional wisdom, elevated interest rates have not dampened corporate borrowing appetite. Several structural factors continue to shield large borrowers from the impact of rising rates.
Project-finance deals tied to government-related entities in the Gulf are typically funded on long-term, availability-based contracts, with pricing linked to government benchmarks rather than floating interbank rates, limiting their direct exposure to movements in SAIBOR.
Large corporates also employ interest-rate swaps and caps to lock in borrowing costs, according to local treasury advisory guidance, so higher policy rates do not translate one-for-one into higher debt-service outlays.
Households, by contrast, feel the tightening much sooner. SAMA’s updated disclosure rules require banks to display mortgage rates tied to the three-month SAIBOR, and most variable-rate home finance contracts reset against that benchmark every quarter.
As SAIBOR followed the US Fed trajectory above 5 percent through 2024, monthly repayments for floating-rate mortgages rose accordingly, helping explain why retail-loan growth has cooled relative to corporate demand.
Taken together, the mix of hedged or government-linked pricing on large projects and the immediate SAIBOR pass-through on household mortgages helps explain why elevated interest rates have slowed consumer borrowing more than business lending — without significantly curbing overall credit growth.
The April numbers confirm a structural hand-off. After a decade in which subsidized mortgages dominated credit creation, business lending is now the engine of Saudi banking.
That shift mirrors the broader diversification of the Kingdom’s economy— away from oil, toward industry, logistics, tourism and technology. For lenders, the opportunity is immense, but so is the challenge of funding mega-projects without stretching balance sheet resilience.
With capital ratios near 19 percent and a regulatory regime quick to adapt, Saudi banks appear well-placed to finance the next leg of Vision 2030’s transformation while maintaining the stability that has long been the system’s hallmark.
Russia says pushing offensive into Ukraine’s Dnipropetrovsk region
- A tank unit had ‘reached the western border of the Donetsk People’s Republic and are continuing to develop an offensive in the Dnipropetrovsk region’
MOSCOW: Russia said Sunday it was pushing into Ukraine’s eastern Dnipropetrovsk region in a significant territorial escalation of its three-year military campaign.
The defense ministry said forces from a tank unit had “reached the western border of the Donetsk People’s Republic and are continuing to develop an offensive in the Dnipropetrovsk region.”
Pakistan Navy urges ‘result-oriented’ collective actions as world marks Oceans Day
- World Oceans Day is observed on June 8 each year and this year’s theme is ‘Wonder: Sustaining What Sustains Us’
- The navy says it is undertaking initiatives to safeguard oceans against pollution, over-fishing and climate change
ISLAMABAD: Pakistan Navy on Sunday urged “result-oriented” collective actions to safeguard oceans against pollution, over-fishing and climate change, its Directorate General Public Relations (DGPR) said, on the occasion of the World Oceans Day.
World Oceans Day is observed on June 8 each year and this year’s theme is ‘Wonder: Sustaining What Sustains Us,’ which resonates with the oceans’ vital role in underpinning all life on earth. Covering over 70 percent of Earth, oceans are a key source of oxygen, a regulator of climate and immeasurably support biodiversity, all of which are essential to global livelihoods.
As the principal custodian of Pakistan’s maritime domain, the navy said, it is undertaking substantive initiatives like implementing remedial measures for preventing oil spills at sea, enforcing pollution control measures and banning destructive fishing nets to encourage healthy practices and sustainable use of ocean resources.
“World Oceans Day calls upon us to move beyond the reflexive acknowledgment and take result-oriented collective actions,” the navy quoted its Public Relations director-general as saying.
“To this end, I call upon all the stakeholders to join hands with Pakistan Navy and adopt safe and sustainable practices to secure our oceans’ vitality. Collectively, we can avail this immense endowment in the shape of our rich oceans, preserve their enduring majesty and secure the lifeblood they provide, for our future generations.”
The statement came ahead of a United Nations (UN) Ocean Conference in Nice, France on June 9-13, which will not only focus on accelerating actions for conservation and sustainable use of oceans but also identify ways to conserve and sustainably use the oceans, seas and marine resources by building partnerships.
“For Pakistan, our long coastline and rich marine resources constitute a national trust. This vital treasure trove of biodiversity is facing rapid deterioration and demands immediate and robust intervention by all stakeholders,” the navy said.
“Recognizing our obligation to the environment, Pakistan Navy is also instilling ecological ethos through awareness drives and crucial partnerships. To mark the occasion, National Institute of Maritime Affairs (NIMA) has organized one day international seminar to create awareness about the issue and highlight ways and means to protect our oceans.”
Israeli military hits Hamas member in southern Syria
- Israel and Syria have recently engaged in direct talks to calm tensions
CAIRO: The Israeli military said on Sunday that it struck a member of the Palestinian militant group Hamas in southern Syria’s Mazraat Beit Jin, days after Israel carried out its first airstrikes in the country in nearly a month.
Hamas did not immediately comment on the strike.
Israel said on Tuesday it hit weapons belonging to the government in retaliation for the firing of two projectiles toward Israel for the first time under the country’s new leadership. Israeli Defense Minister Israel Katz held Syria’s President Ahmed Al-Sharaa accountable.
Damascus in response said reports of the shelling were unverified, reiterating that Syria does not pose a threat to any regional party.
A little known group named “Martyr Muhammad Deif Brigades,” an apparent reference to Hamas’ military leader who was killed in an Israeli strike in 2024, reportedly claimed responsibility for the shelling. Reuters, however, could not independently verify the claim.
Israel and Syria have recently engaged in direct talks to calm tensions, marking a significant development in ties between states that have been on opposite sides of conflict in the Middle East for decade.
Travel ban may shut door for Afghan family to bring niece to US for better life
- President Donald Trump signed the ban Wednesday, similar to one in place during his first administration but covers more countries
- Myanmar, Chad, Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen also banned along with Afghanistan
IRMO, S.C.: Mohammad Sharafoddin, his wife and young son walked at times for 36 hours in a row over mountain passes as they left Afghanistan as refugees to end up less than a decade later talking about their journey on a plush love seat in the family’s three-bedroom suburban American home.
He and his wife dreamed of bringing her niece to the US to share in that bounty. Maybe she could study to become a doctor and then decide her own path.
But that door slams shut on Monday as America put in place a travel ban for people from Afghanistan and a dozen other countries.
“It’s kind of shock for us when we hear about Afghanistan, especially right now for ladies who are affected more than others with the new government,” Mohammad Sharafoddin said. “We didn’t think about this travel ban.”
President Donald Trump signed the ban Wednesday. It is similar to one in place during his first administration but covers more countries. Along with Afghanistan, travel to the US is banned from Myanmar, Chad, the Republic of Congo, Equatorial Guinea, Eritrea, Haiti, Iran, Libya, Somalia, Sudan and Yemen.
Trump said visitors who overstay visas, like the man charged in an attack that injured dozens of demonstrators in Boulder, Colorado, earlier this month, are a danger to the country. The suspect in the attack is from Egypt, which isn’t included in the ban.
The countries chosen for the ban have deficient screening of their citizens, often refuse to take them back and have a high percentage of people who stay in the US after their visas expire, Trump said.
The ban makes exceptions for people from Afghanistan on Special Immigrant Visas who generally worked most closely with the US government during the two-decade war there.
Thousands of refugees came from Afghanistan
Afghanistan was also one of the largest sources of resettled refugees, with about 14,000 arrivals in a 12-month period through September 2024. Trump suspended refugee resettlement on his first day in office.
It is a path Sharafoddin took with his wife and son out of Afghanistan walking on those mountain roads in the dark then through Pakistan, Iran and into Turkiye. He worked in a factory for years in Turkiye, listening to
YouTube videos on headphones to learn English before he was resettled in Irmo, South Carolina, a suburb of Columbia.
His son is now 11, and he and his wife had a daughter in the US who is now 3. There is a job at a jewelry maker that allows him to afford a two-story, three-bedroom house. Food was laid out on two tables Saturday for a celebration of the Muslim Eid Al-Adha holiday.
Sharafoddin’s wife, Nuriya, said she is learning English and driving — two things she couldn’t do in Afghanistan under Taliban rule.
“I’m very happy to be here now, because my son is very good at school and my daughter also. I think after 18 years they are going to work, and my daughter is going to be able to go to college,” she said.
Family wants to help niece
It is a life she wanted for her niece too. The couple show videos from their cellphones of her drawing and painting. When the Taliban returned to power in 2021, their niece could no longer study. So they started to plan to get her to the US at least to further her education.
Nuriya Sharafoddin doesn’t know if her niece has heard the news from America yet. She hasn’t had the heart to call and tell her.
“I’m not ready to call her. This is not good news. This is very sad news because she is worried and wants to come,” Nuriya Sharafoddin said.
While the couple spoke, Jim Ray came by. He has helped a number of refugee families settle in Columbia and helped the Sharafoddins navigate questions in their second language.
Ray said Afghans in Columbia know the return of the Taliban changed how the US deals with their native country.
But while the ban allows spouses, children or parents to travel to America, other family members aren’t included. Many Afghans know their extended families are starving or suffering, and suddenly a path to help is closed, Ray said.
“We’ll have to wait and see how the travel ban and the specifics of it actually play out,” Ray said. “This kind of thing that they’re experiencing where family cannot be reunited is actually where it hurts the most.”
Taliban criticize travel ban
The Taliban criticized Trump for the ban, with leader Hibatullah Akhundzada saying the US was now the oppressor of the world.
“Citizens from 12 countries are barred from entering their land — and Afghans are not allowed either,” he said on a recording shared on social media. “Why? Because they claim the Afghan government has no control over its people and that people are leaving the country. So, oppressor! Is this what you call friendship with humanity?”
