Japan’s Abe vows unprecedented stimulus, Tokyo virus cases rise by daily record

The governor of Tokyo has asked ciitzens to avoid non-essential outings until April 12, and particularly this weekend. (AFP)
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Updated 29 March 2020
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Japan’s Abe vows unprecedented stimulus, Tokyo virus cases rise by daily record

  • Abe announced plans to approve the drug Avigan that has proved helpful in treatment

TOKYO: Japan’s Prime Minister Shinzo Abe on Saturday promised a massive unprecedented package of steps to cushion the economy from the coronavirus pandemic, saying that the country was close to a national emergency as infections surged in Tokyo.

Abe told a country that is seeing a rising number of deaths and cases from the outbreak that the “huge, powerful” measures would be greater than the response to the global financial crisis of 2008.

“Japan is holding up barely, but it would not be strange if there were a rapid spread (of the virus) at any time,” Abe told a nationally televised news conference, though he held back from declaring a state of emergency. 

He also announced plans to approve the drug Avigan that has proved helpful in treatment.

The government will craft the stimulus within about 10 days, Abe said, as officials confirmed a further 60 cases in Tokyo.

FASTFACT

1,400 Infections in Japan have climbed to more than 1,400, with 47 deaths.

Tokyo Governor Yuriko Koike earlier issued a plea following a surge in coronavirus infections this week that she said put Tokyo on the brink of an emergency.

She has asked the tens of millions of people in the city and surrounding regions to avoid non-essential, non-urgent outings until April 12, and particularly this weekend.

Infections in Japan have climbed to more than 1,400, with 47 deaths, excluding those from a cruise ship quarantined last month. 

Hit early by the coronavirus in its initial spread from China, Japan had seen a more gradual rise than the recent surge in much of Europe and the US.

Abe this week called the situation “a national crisis.” People in the Osaka area in western Japan have also been asked to stay at home.  

While the current level of infection appears low for a city of nearly 14 million, with many millions more living in surrounding suburbs, experts warn there is a high risk that the number of cases could spiral as authorities have been unable to track all the contacts of more than half of the latest cases.

The government has deployed the military to greater Tokyo’s Narita and Haneda airports to assist in virus screenings and the transport of people placed in quarantine, NHK said.

The voluntary calls by Koike and other Japanese leaders for people to stay at home compares with the more rigorous lockdowns in major cities in Italy, Britain, France, Spain, and the US — the new global epicenter of the virus.

Globally, infections have topped half a million with more than 20,000 deaths, with the contagion affecting more than 100 countries.

Abe, who has not declared a national state of emergency, is expected to order economic steps including $135 billion or more in spending, government officials and lawmakers say, joining policymakers globally trying to blunt a downturn.

In a quiet neighborhood close to the prime minister’s private residence in central Tokyo, the scene was typical of a Saturday morning. Some people were jogging and walking their dogs. A few stopped to pray at a local shrine. Traffic was brisk on local roads.

“I’m a little worried, but I have an appointment today, which is why I’m outside,” said a 41-year old man walking down the street, who declined to be named.

“It’s not something that I can’t cancel, but I do have to meet someone. I will be riding the train later.”

Trains were not empty but were far less crowded than on a normal weekend. 

Some department stores, movie theaters, museums and parks closed, but many supermarkets and convenience stores were open as usual.

In Setagaya, a popular residential area in western Tokyo, many restaurants and shops were shut, although those that were open were doing brisk business, including an Italian restaurant that was filled with some young families and older couples.

Nearby, laborers worked on a construction site as if it were a normal day. 


Oman inflation at 0.8% in October: official data

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Oman inflation at 0.8% in October: official data

RIYADH: Oman’s inflation rate saw a modest 0.8 percent increase in October compared to the same month last year despite price increases across several categories, according to an official report.  

The National Center for Statistics and Information analysis revealed that consumer prices for miscellaneous goods and services increased by 4.8 percent year on year, followed by food and non-alcoholic beverages by 3.5 percent, healthcare by 3.2 percent, and culture and recreation by 0.8 percent.  

Restaurants and hotels also saw gains of 0.6 percent, clothing and footwear by 0.5 percent, household furniture and maintenance by 0.4 percent, and education by 0.1 percent.  

Conversely, transportation prices declined by 2.6 percent, while housing, utilities, fuel, communication, and tobacco categories remained stable.  

Breaking down the food and beverage category, vegetable prices recorded the largest increase at 8.9 percent. Fruits followed with an 8 percent rise. Dairy products, including milk, cheese, and eggs, increased by 5.4 percent. Oils and fats rose by 3.8 percent, while meat prices climbed by 2.8 percent. Sugar and confectionery saw a 2.4 percent increase. 

Processed foods increased by 1.8 percent, bread and cereals by 0.8 percent, and non-alcoholic beverages by 0.7 percent. Meanwhile, fish and seafood prices fell by 1.2 percent, partially offsetting the broader price hikes in food items.  

Broad money supply  

Data by the nation’s central bank pointed to a significant expansion in Oman’s broad money supply, which grew by 13.9 percent year on year, reaching 24.7 billion Omani rials ($64.1 billion) by the end of September.  

This growth was driven by an 18.2 percent increase in narrow money and a 12.3 percent rise in quasi-money, which includes savings deposits, term deposits in Omani rials, and certificates of deposit issued by banks, as well as margin accounts, and foreign currency holdings within the banking sector.  

Despite the overall monetary expansion, cash held by the public declined by 6.7 percent, while demand deposits surged by 25.1 percent, reflecting changing preferences in liquidity management.  

Commercial banks in Oman recorded rising interest rates during the period. The weighted average interest rate on Omani rial-denominated deposits increased from 2.453 percent in September 2023 to 2.679 percent in September this year.  

Similarly, the weighted average interest rate on loans denominated in Omani rials rose from 5.451 percent to 5.604 percent over the same period.  

Interbank lending rates for overnight transactions declined slightly, with the average falling to 4.896 percent in September compared to 5.388 percent in the same month last year.  

This shift aligns with the reduction in the weighted average repurchase rate, which decreased from 6.000 percent to 5.790 percent during the same timeframe. These movements are attributed to adjustments in monetary policy in line with the US Federal Reserve’s actions. 


COP16: A turning point for global land restoration and drought resilience  

Updated 4 min 45 sec ago
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COP16: A turning point for global land restoration and drought resilience  

RIYADH: The 16th session of the Conference of the Parties to the UN Convention to Combat Desertification is set to be a pivotal moment in the global fight against desertification and land degradation. 

Scheduled for Dec. 2-13, 2024, in Riyadh, COP16 carries the theme “Our Land. Our Future.”  

This event aligns with the 30th anniversary of the UNCCD and marks the first time its COP will convene in the Middle East and North Africa — a region acutely affected by the devastating impacts of desertification and drought. 

Why COP16 matters 

As one of the three Rio Conventions, alongside climate change and biodiversity, UNCCD plays a critical role in global environmental governance. COP16 aims to catalyze unprecedented ambition and investment to restore degraded lands and enhance drought resilience. 

The conference will focus on several key objectives:  

Scaling up land restoration: Accelerating efforts to restore 1.5 billion hectares of degraded land by 2030. 

Strengthening drought resilience: Enhancing global and national policy frameworks to better withstand and manage droughts. 

Promoting people-centered solutions: Ensuring the participation of local communities, women, and youth in land management and restoration efforts.  

“The COP16 plans to combat land degradation present exciting opportunities,” said Vijay Valecha, chief investment officer of Century Financial, in an interview with Arab News. 

“Land restoration will promote job growth, encourage sustainable development, and support local economies. According to the UNCCD, every dollar invested in restoring degraded lands yields between $7 and $30 in economic returns,” he added.  

Valecha underscored the importance of collaboration in achieving these ambitious goals, stating: “The target to reforest 1.5 billion hectares will require close collaboration among experts, universities, NGOs, government organizations, and the private sector. This collaboration will strengthen knowledge transfer to local communities and grassroots organizations, making development more sustainable in the long term.”  

HIGHLIGHTS

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation.

‘Missed calls from the land’  

As COP16 in Riyadh approaches, the presidency announced the launch of the global campaign, “Missed calls from the land.”  

This initiative, supported by a campaign film, highlighted Saudi Arabia’s commitment as the UNCCD COP16 Presidency to raise global awareness about the urgent issues of land degradation, drought, and desertification.  

Currently, 40 percent of the world’s land is degraded, affecting 3.2 billion people. The UNCCD’s target aims to restore 1.5 billion hectares of degraded land by 2030.  

Valecha elaborated on how land restoration will have far-reaching impacts: “Restoration also improves water retention in the soil, enhances agricultural output, stimulates the livestock economy, and increases water availability for human consumption.”  

He added: “These efforts will create more green jobs, making economies more resilient in the face of climate challenges.”  

Ministerial dialogues  

COP16 in Riyadh will host the first dual-track dialogue at a UNCCD COP, combining a negotiation track with an action agenda to address pressing environmental issues.  

The high-level segment of COP16, scheduled for Dec. 2-3, will feature ministerial dialogues on drought resilience, finance, and the impact of land degradation and drought on forced migration, security, and prosperity.  

“COP16 in Riyadh is a critical moment for the international community to address land degradation, drought and desertification,” said Osama Faqeeha, deputy minister for environment and adviser to the UNCCD COP16 Presidency.  

In a press release, he added: “From food and water insecurity to climate change, conflict, instability, and forced migration, how we treat our land has a profound impact on lives and livelihoods around the world.” 

As the hosts, Saudi Arabia is also introducing the first-ever Green Zone at a UNCCD COP, aimed at mobilizing the scientific community, businesses, financial institutions, NGOs, and the public to deliver lasting change.   

“At the same time, we are engaging policymakers from around the world in a range of high-profile discussions to deliver decisive multilateral action. This dual-pronged approach is vital to accelerating the land restoration and drought resilience initiatives our planet and its people so desperately need,” said Faqeeha.

FAO’s central role  

The Food and Agriculture Organization will play a key role at COP16, reflecting its commitment to sustainable land management and food security. Abdul Hakim Elwaer, FAO’s assistant director-general, emphasized in remarks to Asharq Al-Awsat the organization’s active participation, including leading discussions on transforming food systems and coordinating thematic days like Food Day and Governance Day.  

Valecha tied land restoration directly to food security, emphasizing: “Land restoration is crucial for ensuring we have enough food for the future. Sustainable methods like agroecology and regenerative agriculture can improve soil health, reduce carbon emissions, and boost productivity, creating robust food supply chains that adapt to climate change.”  

Strengthening drought resilience  

Building resilience to drought will be a key focus of COP16, emphasizing the role of policies and technologies, with Valecha advocating for proactive measures. 

“To improve drought resilience, a comprehensive framework is needed. This includes identifying vulnerable areas, implementing early warning systems, and enacting policies to prevent water overuse,” he said.  

“Measures such as promoting drought-resistant crops and establishing drought management funds will provide essential protection for affected communities,” Valecha added. 

The integration of local and indigenous knowledge into these efforts is equally vital.   

Valecha said: “Indigenous communities, as key stakeholders in land restoration, possess deep understanding of their ecosystems. Their involvement can significantly reduce deforestation rates, as seen in countries like Nepal and regions in the Americas.”  

A regional and global impact  

Saudi Arabia’s hosting of COP16 highlights the region’s critical role in addressing desertification and water scarcity. 

The MENA region is one of the areas most impacted by desertification, with some areas experiencing nearly 100 percent land degradation. COP16 will provide an opportunity for regional countries to showcase their resilience strategies and contribute to shaping global policies.  

“The Gulf and MENA region, owing to its demographics, have been at the center of environmental challenges,” said Valecha. “However, initiatives such as drought and disease-resistant crop varieties by GCC nations demonstrate the region’s commitment to combating these challenges.”  

Moreover, COP16 will offer a platform to showcase innovative solutions, from advanced land management practices to cutting-edge technologies in water conservation.  

Youth and community engagement  

For the first time, COP16 will see Saudi Arabia host a Green Zone alongside the formal Blue Zone program. This inclusive public space will promote environmental awareness through family-friendly and cultural activities. 

The emphasis on inclusivity is central to COP16, with forums and training sessions for youth, women, and indigenous communities. The Green Zone will host discussions on sustainable land stewardship while featuring workshops, exhibitions, and interactive art installations.  

Valecha highlighted the potential of youth engagement at COP16: “Selected youth negotiators will participate in the Youth Negotiators Academy, equipping them with skills to advocate for actionable policies. These efforts promote intergenerational dialogue and foster solutions for sustainable livelihoods.”  

“Globally, women account for nearly 50 percent of agricultural labor in small-scale farming. Gender-inclusive policies across the value chain are critical to the success of restoration initiatives,” said Valecha. 

Innovative solutions and partnerships  

COP16 is expected to unveil groundbreaking initiatives, with Valecha anticipating significant developments. He added: “The conference could lead to the establishment of financing mechanisms and restoration funds. Cross-border partnerships can help maintain the Land Degradation Neutrality target and prevent further degradation of land resources.” 

Valecha emphasized the critical role of the private sector in achieving COP16’s goals, highlighting the potential contributions of international financial institutions and private companies. He pointed to favorable loans, green bonds, and funding for sustainable practices such as no-till farming and rotational grazing as key areas of support.  

He also stressed that public-private partnerships are vital for scaling up land restoration efforts. 

A call to action  

As COP16 commences, the world stands at a crossroads. This conference is not just a meeting but a call to action — a chance to turn ambition into tangible solutions for land, livelihoods, and the planet’s future. 

 


Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

Updated 12 min 36 sec ago
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Saudi Arabia launches 10th round of ‘Sah’ savings product with 4.83% return 

JEDDAH: Saudi Arabia has launched the 10th round of its subscription-based savings product, Sah, for December, offering a competitive return of 4.83 percent. 

The initiative, aimed at fostering financial stability and supporting economic growth, is Shariah-compliant and government-backed.  

The sukuk opened for subscription on Dec. 1 and will remain available until Dec. 3. Allocations are scheduled for Dec. 10, with redemption from Dec. 15 to 18, and payment due on Dec. 22, according to the National Debt Management Center’s 2024 product issuance calendar.  

Organized by the NDMC and issued by the Ministry of Finance, the fee-free savings product offers low-risk returns and is accessible through the digital platforms of approved financial institutions.  

Sah is the first savings product in Saudi Arabia specifically designed for individuals, structured as bonds within the Kingdom’s local bonds program and denominated in Saudi riyals.  

It aligns with the Financial Sector Development Program under Saudi Vision 2030, which aims to increase the savings rate among residents from 6 percent to the international benchmark of 10 percent by the end of the decade. 

The minimum subscription amount is SR1,000 ($266), equivalent to one bond, while the maximum is capped at SR200,000 per user during the program period. The product is exclusive to Saudi nationals aged 18 and above, with returns provided monthly based on the issuance calendar.  

The savings period spans one year, offering fixed returns, with accrued yields disbursed at the sukuk’s maturity. Returns for future issuances will be influenced by market conditions. 

Eligible individuals must hold accounts with one of five financial institutions: SNB Capital, Aljazira Capital, Alinma Investment, SAB Invest, or Al Rajhi Bank. 

The 9th round of Sah, launched on Nov. 3, offered a slightly higher return of 4.89 percent. That issuance closed with total allocations reaching SR3.415 billion ($990 million).  

The sukuk issuance for the 9th round was divided into five tranches, each with different maturities. The first tranche, worth SR2.524 billion, will mature in 2029. The second, valued at SR434 million, will mature in 2031. The third tranche, amounting to SR137 million, will mature in 2034. The fourth, totaling SR10 million, will mature in 2036. The fifth tranche, sized at SR310 million, will mature in 2039. 

The NDMC has emphasized that the Sah sukuk program is designed to strengthen collaboration with the private sector. Future initiatives will focus on developing customized savings products tailored to different individual categories in partnership with banks, fund managers, fintech companies, and other institutions. 

The launch marks a significant step by the Saudi government to promote savings and enhance financial inclusion, ensuring citizens have access to products and services that meet their financial needs.


Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

Updated 48 min 44 sec ago
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Saudi banks post 3.7% loan growth in Q3 amid rising credit demand: report

RIYADH: Saudi Arabia’s banking sector recorded a 3.7 percent sequential increase in loans and advances in the third quarter of 2024, driven by a 4.4 percent surge in corporate and wholesale banking, according to Alvarez & Marsal. 

Deposit growth lagged behind, rising 1.4 percent during the same period, as credit demand continued to outpace deposit mobilization.   

“The continued positive performance in the third quarter of 2024 reflects a balance of growth and improved cost efficiencies among Saudi banks. Profitability has increased primarily due to an increase in non-interest income amid a moderate rise in impairment charges,” Asad Ahmed, managing director of A&M Financial Services, said. 

He added: “As the Saudi Central Bank maintains interest rates in line with the US Fed, potential further rate cuts in the coming quarters are likely to affect interest margins. Focus on non-interest income and improved cost efficiencies will remain central going forward.” 

Time deposits grew by 4.2 percent, underscoring the high-interest rate environment. The loan-to-deposit ratio exceeded 100 percent, indicating that credit demand outpaced deposit mobilization. 

Operating income increased by 6.0 percent during the quarter, driven by a 15.2 percent rise in non-interest revenue. This contributed to an overall improvement in the cost-to-income ratio, which fell by 31 basis points to 31.0 percent. 

Net income rose by 5.3 percent, reaching SR20.5 billion, even as impairment charges surged by 30.4 percent. 

The Saudi Central Bank reduced repo rates by 50 basis points in line with the US Federal Reserve’s actions. Despite this, net interest margins remained steady at 2.95 percent, supported by an 18-basis-point increase in the yield on credit to 8.6 percent and a slight rise in the cost of funds to 3.5 percent.   

Saudi Arabia’s Vision 2030 continues to drive non-oil economic growth, spurring consumer spending, tourism, and construction activities.  

Financial institutions are also prioritizing digital transformation. For example, Al Rajhi Bank’s acquisition of a controlling stake in “Drahim,” a management platform, highlights the growing integration of traditional banking and fintech. 

According to the report, Saudi banks are well-positioned for sustainable growth as they focus on enhancing non-interest income and operational efficiency in a dynamic economic environment. 

While geopolitical challenges and oil market fluctuations present risks, the Kingdom’s banking sector remains resilient, playing a key role in advancing the broader economic objectives outlined in Vision 2030.


Japan’s Saudi crude oil imports reach 41.8% of October total

Updated 01 December 2024
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Japan’s Saudi crude oil imports reach 41.8% of October total

TOKYO: Japan’s imports of Saudi oil in October 2024 amounted to 27.8 million barrels, a significant 41.8 percent of the total, according to the Japanese Ministry of Economy, Trade and Industry’s Agency of Natural Resources and Energy.

During October, Japan imported 66.53 million barrels, of which the Arab share was 97.8 percent or 65.06 million barrels.

The strategic importance of Arab countries in Japan’s energy security is highlighted by their significant contribution to Japan’s oil imports. The main contribution was from four Arab countries — the UAE, Saudi Arabia, Kuwait, and Qatar — as well as the neutral zone between Saudi Arabia and Kuwait.

The UAE emerged as the largest supplier, providing 31.8 million barrels, which accounted for 47.8 percent of the total imports. Qatar and Kuwait followed, contributing 2.7 million barrels (4.1 percent) and 2.04 million barrels (3.1 percent), respectively. The neutral zone, a smaller supplier, provided 1.1 percent of Japan’s total imports.

Japan’s geopolitical decisions continue to shape its oil imports. With a ban on oil imports from Iran and Russia, the rest of its oil imports in October were sourced from Central and South America (0.9 percent), Southeast Asia (0.8 percent), Oceania (0.3 percent), and the US (0.2 percent).

This article also appears on Arab News Japan