Amazon will begin to put new grocery delivery customers on a wait list and curtail shopping hours at some Whole Foods stores to prioritize orders from existing customers buying food online during the coronavirus outbreak, the company said on Sunday.
Many shoppers recently seeking to purchase groceries from the Seattle-based e-commerce company found they could not place orders due to a lack of available delivery slots. Amazon said it would have to relegate all new online grocery customers to a wait list starting Monday while working on adding capacity each week.
In recent weeks, it increased the number of Whole Foods stores offering grocery pickup to more than 150 locations, up from 80 previously.
Amazon also plans to shorten some Whole Foods stores’ hours for the public so its employees can more quickly fulfill online grocery orders, the company said.
The moves illustrates how the world’s largest online retailer, which showed its ambition to enter the grocery industry by acquiring Whole Foods for $13.7 billion in August 2017, is now leveraging its presence both online and in physical stores to handle high demand from consumers who are stuck eating at home, with many restaurant dining rooms closed to the public.
Amazon offers grocery delivery services Amazon Fresh and Amazon Prime Now from its own warehouses and Whole Foods stores. It typically touts ultra-fast delivery within hours, with shoppers able to choose a delivery window. Last month, Amazon temporarily suspended the Prime Pantry delivery service, which sells non-perishable groceries.
Amazon said its online grocery order capacity has increased by more than 60% during the outbreak. Some netizens who said they used Amazon Prime, its $119-a-year subscription service for US shoppers, have nevertheless complained on social media about the scarcity of delivery windows.
The company said it is hiring more workers to expand capacity and that it plans to launch a new feature that will help customers secure a virtual “place in line” to distribute the delivery windows on a first come, first served basis. It also offered higher pay to encourage its warehouse workers to work for its grocery delivery service.
Currently, Amazon runs 487 Whole Foods stores in the United States. These stores have been limiting the number of customers allowed at once, and Amazon has said it conducts daily employee temperature checks and sends masks and gloves to protect workers.
The first store of Amazon’s much-anticipated new grocery chain, which is scheduled to open this year in Woodland Hills, Los Angeles, has been temporarily transitioned into a warehouse for online orders, the company said.
Still, some employees at Whole Foods and Amazon warehouses have protested the company is not doing enough to protect them, in demonstrations that gained attention from lawmakers and unions. Over 50 Amazon fulfillment centers and several Whole Foods stores had confirmed COVID-19 cases, according to multiple reports.
“We still expect the combination of restricted capacity due to social distancing and customer demand will continue to make finding available delivery windows challenging for customers,” Stephenie Landry, vice president of Grocery at Amazon, wrote in a blogpost. “If you are able to do so safely, we kindly encourage our customers who can to shop in-person.”
Amazon stops accepting new online grocery customers amid surging demand
https://arab.news/76tmt
Amazon stops accepting new online grocery customers amid surging demand
- Amazon to relegate all new online grocery customers to a wait list starting Monday
- Currently, Amazon runs 487 Whole Foods stores in the United States
Qatar strengthens fiscal position with $245m budget surplus in Q4
RIYADH: Qatar recorded a budget surplus of 900 million Qatari riyals ($245.6 million) in the fourth quarter of 2024, up from 100 million riyals in the previous quarter.
The Ministry of Finance stated on its X account that the surplus will be used to reduce public debt. It added that total expenditures for the quarter stood at 47.8 billion riyals, a 12 percent year-on-year decline, while revenues totaled 48.7 billion riyals, reflecting a 12.5 percent drop.
The health, municipal and environment, general secretariat, and energy sectors ranked as the top-performing areas during the quarter, according to the Sector Performance Index.
Qatar’s fiscal performance aligns with other Gulf Cooperation Council nations, such as Oman, which recorded a 6.2 percent budget surplus in 2024. This reflects the International Monetary Fund’s December review, which highlighted the region’s resilience amid oil production cuts, supported by diversification efforts and economic reforms.
“For the second consecutive year, and in line with Qatar’s continued dedication to developing health and education, allocations for the two sectors have increased, with both amounting to 20 percent of the total new budget,” the ministry said.
Government tenders and auctions during the quarter were valued at 6.4 billion riyals, while contracts with local companies totaled 4.8 billion riyals, a 36.8 percent decline compared to the same period in 2023.
The 2024 state budget prioritized significant investments in healthcare, with 11 percent of total expenditures allocated to the sector. Key projects include the development of the National Cancer Hospital, a specialized psychiatric hospital, and upgrades to existing healthcare facilities.
In the third quarter of 2024, Qatar’s budget surplus declined by 97.4 percent compared to the second quarter. Total revenues for that period were 51.3 billion riyals, driven by oil and gas revenues of 42.3 billion riyals, which fell 25.4 percent year on year due to fluctuating market conditions.
Non-oil revenues, however, showed strong growth, rising 76.8 percent year on year from a lower base.
Expenditures totaled 51.2 billion riyals in the third quarter, a 2.8 percent increase compared to the same quarter in 2023, with notable spending on salaries, wages, and minor capital expenditures.
The government prioritized debt reduction during the period, in line with its fiscal strategy. Public debt stood at 332.4 billion riyals, equivalent to 38.6 percent of nominal gross domestic product.
Saudia sets new heights in 2024, flying 20m international passengers with 16% growth
- Saudia reported an 18% increase in transit guests compared to the previous year, surpassing 9.3 million passengers
- It carried 35 million guests throughout 2024, reflecting a 15% year-on-year increase
JEDDAH: Saudi Arabia’s national flag carrier Saudia reported a 16 percent year-on-year rise in its international passenger numbers in 2024, reaching 20 million, highlighting its growth and operational success.
Saudia also reported an 18 percent increase in transit guests compared to the previous year, surpassing 9.3 million passengers, according to its performance report statement, released on Jan. 23.
The growth reflects the carrier’s efforts to strengthen global connections to the Kingdom, supporting the ambitious goals of Saudi Vision 2030 in tourism, entertainment, sports, and the Muslim Hajj and Umrah pilgrimages.
According to the International Air Transport Association, the Middle East’s air travel market continued its strong recovery in November, with passenger demand increasing by 8.9 percent compared to the same month in 2023.
While this growth was robust, it was slightly ahead of the global trend, which saw an 8.1 percent increase in total passenger demand.
The region’s performance was part of a broader international trend, where the Middle East, alongside Europe and Asia-Pacific, led the way in demand growth. However, airlines in the region continue to face challenges in aircraft supply, preventing them from fully meeting growing demand and improving their services, IATA said in a statement released earlier this month.
Major international markets in the Middle East experienced a notable increase in traffic demand, driven by the strong performance of the region’s largest aviation hubs, despite some countries facing challenges from geopolitical conflicts, according to IATA.
Ibrahim Al-Omar, the director general of Saudia Group, said that success in the competitive aviation industry requires a continuously evolving strategy, adding that the airline remains committed to achieving sustainable operational excellence while upholding the highest international standards.
“This remarkable growth is a testament to the dedication and hard work of Saudia’s employees and the strategic optimization of our aircraft fleet to deliver exceptional service. We have also made significant strides in enhancing our services and enriching the overall guest experience,” he said.
In its report, Saudia said that it carried 35 million guests throughout 2024, reflecting a 15 percent year-on-year increase.
The airline reported operating 193,000 scheduled and additional flights last year, reflecting a 10 percent increase from the year before, adding that it also achieved an 8.5 percent rise in flight hours, totaling over 581,000, while maintaining an on-time performance rate of 89.1 percent, marking a 2.7 percent improvement.
The company’s customer satisfaction metric showed a 32.7 score, reflecting a 4.5 percent increase compared to 2023, according to the statement.
Saudia said it saw a notable increase in guest engagement through modern technologies as part of its ongoing digital transformation. It noted a 40 percent rise in usage of the Saudia app, while the Government Digital Wallet, GovClick, drove an impressive 324 percent growth in digital service adoption.
The company’s futuristic plans include strengthening its operational model, particularly during peak travel seasons, by expanding its fleet, increasing seat capacity, and broadening its global network.
With a current fleet of 147 aircraft, the airline aims to add 118 new planes in the coming years as part of its growth strategy.
Closing Bell: Saudi main index slips to close at 12,354
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 8.35 points, or 0.07 percent, to close at 12,354.04.
The total trading turnover of the benchmark index was SR6.67 billion ($1.77 billion), as 112 of the stocks advanced and 114 retreated.
Similarly, the Kingdom’s parallel market Nomu lost 154.28 points, or 0.50 percent, to close at 30,846.59. This comes as 32 of the listed stocks advanced while 49 retreated.
The MSCI Tadawul Index also lost 1.64 points, or 0.11 percent, to close at 1,543.38.
The best-performing stock of the day was Almoosa Health Co., whose share price surged 10 percent to SR154.
Other top performers included Al Jouf Cement Co., whose share price rose 8.22 percent to SR12.90, as well as Northern Region Cement Co., whose share price surged 6.56 percent to SR9.91.
Saudi Reinsurance Co. recorded the most significant drop, falling 2.90 percent to SR60.20, while Middle East Specialized Cables Co. also saw its stock prices fall 2.67 percent to SR45.60.
Kingdom Holding Co. recorded a drop of 2.42 percent to SR9.29.
On the announcements front, Riyad Bank has completed the offer of its SR-denominated additional tier 1 capital sukuk under its Additional Tier 1 Capital Sukuk Program, which is worth SR10 billion.
According to a Tadawul statement, the total number of sukuk is 800, with the value of the offer standing at SR2 billion. The statement also showed that while the par value is SR250,000, the return is 6 percent per annum.
Riyad Bank ended the session at SR29.60, with no percentage change in price.
Albilad Capital has rebalanced the sukuk basket for the Albilad Saudi Sovereign Sukuk ETF to align with the components of the index. According to a bourse filing, the rebalancing took place on Jan. 22.
Albilad Capital ended the session at SR8.30, with no percentage change in price.
Saudi Arabian Cooperative Insurance Co. has decreased its accumulated losses to 0 percent of the capital. According to a Tadawul statement, this move is mainly attributed to the use of SR39 million out of the total statutory reserve balance amounting, to SR43 million to extinguish the firm’s accumulated losses.
The company highlighted that the use of the company’s statutory reserve has no impact on its financial obligations.
Saudi Arabian Cooperative Insurance Co. ended the session at SR16.70, up 1.24 percent.
Arabian Plastic Industrial Co. has signed a contract with Badael Co., a Public Investment Fund firm, to manufacture and supply plastic containers for 3 years.
A bourse filing revealed that the agreement value exceeds 5 percent of the company’s total revenues according to the audited annual financial statements for the year 2023. The filing also indicated that the financial impact of the deal is forecasted to be reflected positively on the financial statements starting from the first half of 2025.
Arabian Plastic Industrial Co. ended the session at SR37, up 1.23 percent.
GCC banks to issue over $30bn in US dollar debt in 2025: Fitch Ratings
RIYADH: Gulf Cooperation Council banks are projected to issue over $30 billion in US dollar-denominated debt in 2025, following a record $42 billion in 2024, Fitch Ratings said in a new report.
The surge in debt issuance is set to be driven by nearly $23 billion in maturing debt, lower US dollar interest rates, and strong regional credit demand, particularly in Saudi Arabia and the UAE.
This comes as GCC banks accounted for 18 percent of total US dollar debt issuance by emerging-market banks in 2024, with this figure rising to 36 percent if Chinese banks are excluded. Favorable global financing conditions, supported by high oil prices expected to stay around $70 per barrel in 2025, are expected to continue to bolster investor confidence in the region.
“We expect Saudi banks’ US dollar debt issuance to continue representing a high proportion of overall GCC issuance given the country’s strong credit growth outlook, especially in the corporate segment, and the banks’ increased use of external funding due to high competition for liquidity locally,” stated Fitch Ratings.
Last year, GCC banks broke their previous debt issuance record of $25.6 billion set in 2020. This increase was largely attributed to strong credit growth in Saudi Arabia, banks’ efforts to diversify funding sources, and high debt maturities. The issuance of certificates of deposits alone totaled $8.6 billion, benefiting from investor optimism and the region’s economic stability, the report noted.
Saudi and UAE banks were the leading issuers, each accounting for around a third of total GCC debt issuance. Saudi banks, in particular, have become active in international debt markets since 2020, using external funding to support aggressive growth strategies, diversify funding bases, and meet rising foreign currency demands.
Short-term CDs were a key instrument in GCC banks’ debt strategies in 2024, accounting for about 21 percent of total debt issuance. Key financial hubs such as New York, London, Hong Kong, and Singapore facilitated much of this activity, broadening investor bases and enhancing liquidity options.
The report noted that Islamic finance stayed strong, with sukuk issuance accounting for nearly half of the total 2024 issuance, excluding CDs. The growth in sukuk highlights its appeal to shariah-compliant investors and competitive pricing that makes it an attractive funding instrument for regional banks.
Fitch expects Saudi banks to maintain a dominant share of GCC debt issuance in 2025, driven by strong credit growth in the corporate sector and increasing competition for local liquidity.
In 2025, GCC banks will face substantial debt maturities, with Qatari banks expected to account for one-third of the $23 billion due. Saudi and UAE banks will each represent about a quarter of the maturing debt.
Despite global economic uncertainties, Fitch stated that GCC banks are expected to leverage their solid credit ratings and favorable economic conditions to secure advantageous financing terms.
Sukuk issuance is expected to grow further as banks tap into the expanding pool of shariah-compliant investors. Fitch said the continued use of short-term instruments like CDs will provide banks with greater flexibility in managing funding needs and expanding their global investor base.
Additionally, GCC banks are expected to issue $2.2 billion in additional Tier 1 instruments with first call dates in 2025, followed by $3.1 billion in 2026. This will further support debt issuance, as most GCC bank AT1s are likely to be called due to favorable financing conditions.
AT1 issuance reached $5 billion in 2024, up from $1.7 billion in 2023, marking the highest level since 2021. This surge was driven mainly by Saudi banks.
As GCC banks continue to play a key role in regional economic growth, their strategic debt issuance and diversified funding solutions are expected to drive further financial stability and market confidence in 2025.
WEF panelists urge for efforts to bridge ‘AI divide’
- According to UN figures, 2.7 billion people do not have access to the Internet
DUBAI: While smart technologies unleash opportunities in investment and trade, concerted efforts must seek to bridge the “AI divide” in developing countries, a World Economic Forum panel heard on Thursday.
Deemah Al-Yahya, secretary-general of the Digital Cooperation Organization, said the need for energy, computing power and talent to activate AI would expand the digital gap in the developing world.
“An AI-generated image consumes more energy than charging your smartphone. That’s going to cause a great challenge for developed countries, so let alone developing countries that do not even have reliable energy.”
She added: “Another factor is who is going to get access to the computing power, considering the supply chain and cost? How can talents access the computer power to produce algorithms, local content and innovation?”
According to UN figures, 2.7 billion people do not have access to the Internet, with AI growth threatening to widen the digital gap.
However, using trading digital assets can increase access to new technologies, including AI, quantum computing and blockchain, in the global south, Al-Yahya said.
Highlighting the varying degrees of advancement of digital infrastructures among countries, Al-Yahya stressed harmonizing collaboration and bridge communication between the public and private sector, which served as the drivers of the digital economy.
One of the Digital Cooperation Organization’s mandates is to harmonize policies and regulations among 16 member states from Asia, Europe, Africa and the Middle East to expand technology use and grow their digital economy.
Addressing the benefits of AI in improving efficiency and reducing errors, Thani Ahmed Al-Zeyoudi, UAE minister of state for foreign trade, highlighted synergies and links to different tech systems, even within the same country.
“Many of those technologies are under deployment, but in various scattered ways. Each stakeholder is following their own way when it comes to customers, procedures and managements system,” said Al-Zeyoudi, highlighting the role of governments in implementing regulations that put AI to good use and ensure communication across stakeholders.
He addressed the UAE’s export of technologies to Africa, noting that the private sector took the lead in such initiatives.
“To avoid fragmentation as governments, we need to take the lead by putting (in place) a regulatory system that ensures that the private sector has the freedom to start doing their job, get the funding whenever required, and support them in talking to the right stakeholders,” he said.
