Cali counties with few cases restarting economy

The coronavirus pandemic has led to huge job losses in California, with some restaurants being forced to lay off almost their entire staff. (Reuters)
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Updated 06 May 2020
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Cali counties with few cases restarting economy

  • Some parts of the west coast state have avoided a big coronavirus impact

YUBA CITY, CALIFORNIA: California state restrictions banning restaurants from offering sit-down meals have not yet been lifted, but you wouldn’t know that in downtown Yuba City, where families queued cheerfully for tables at the Happy Viking Sports Pub and Eatery.

The restaurant opened its doors to the public for the first time in 50 days on Monday, after county officials ruled that restaurants, retail stores and fitness centers could open if patrons and staff obeyed social distancing rules — even though restrictions technically remain in place for the entire state.
“We were tired of being in quarantine,” said Tyler Niesen, who had lunch at the Happy Viking with his wife Sidney, four-year-old daughter and two month old son. “We actually got to see people — family and friends.”
The family, who were not wearing masks, ordered burgers and greeted friends at the bustling restaurant. The couple said they were not worried about contracting the virus while out and about.
The moves by Modoc, Yuba and Sutter counties north of Sacramento to allow businesses to open came as Governor Gavin Newsom, a Democrat, said he would allow some “low-risk” businesses like bookstores to re-open beginning on Friday.
He also said communities with low incidents of COVID-19 infections could apply to be released more quickly from additional restrictions.
The three counties in the north didn’t wait for permission. They’re still calling on residents to cover their faces when they are interacting with others, and asking older people to continue to shelter at home. In Yuba and Sutter counties, schools, places of worship and theaters are still prohibited from opening.
Sandee Drown, who owns the Happy Viking with her husband Chris, wore a black mask with the logo of the San Francisco Giants baseball team on it. Her staff also wore masks, but customers did not.
The restaurant lost a quarter of its business during the shutdown, and laid off all but eight of its 47 employees, Drown said.

FASTFACT

California has the largest economy in the US.

Aware that moves to re-open the economy have taken on a political tinge, with some Republicans pushing against restrictions imposed by the Democratic governor, Drown said that the involvement of health director Phuong Luu gave her confidence that re-opening would be safe.
California is one of about two dozen US states that still have strict coronavirus restrictions in place, and residents have been chafing at the prolonged lockdown.
From birthday parties with social distancing to thronging the beaches on warm weekends, residents have begun to test the limits of the public health restrictions. A few restaurants, hair salons and retail shops have reopened on their own, according to local media reports, even as California’s coronavirus cases and deaths continue an upward trajectory.
Vocal groups of protesters, including right-leaning groups and anti-vaccination activists, have crowded the grounds of the state capitol in Sacramento, demanding that social and economic life be allowed to resume.
Newsom was conciliatory about the moves by Yuba and Sutter counties on Monday, saying they could come into compliance later in the week.
In the Southern California community of Victorville in San Bernardino County, gym owner Jacob Lewis re-opened his business on May 1, without waiting for either state or county officials to give him the green light. On Monday some patrons wore masks and practiced social distancing — and some did not.
“I’m big on the constitution so if you want to wear a mask, wear a mask. If you don’t, don’t,” he said. “At the end of the day, it’s freedom.”
Assemblyman James Gallagher, a Republican who represents Yuba City in the state legislature, said his county was basing its decisions on data and science, and had ordered residents to shelter at home a day before the governor issued his statewide order in March.
But he said that cases in the county had since plateaued, with just one person in the hospital with COVID-19 as of Monday. Social distancing worked, but at a great cost to the economy, he said.
“It put a lot of people out of work,” Gallagher said. “Not to mention the damage it’s going to do to local and state governments and programs that everyone relies on.”


Riyadh Air secures license for advanced flight simulator 

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Riyadh Air secures license for advanced flight simulator 

RIYADH: Saudi Arabia’s Riyadh Air has obtained a General Authority of Civil Aviation license for its first Boeing 787-9 full-flight simulator, a key step in its preparations for a 2025 operational launch.

The device, aimed at enhancing pilot training and safety standards, is a major addition to Riyadh Air’s training infrastructure. 

This comes as Saudi Arabia aims to become a regional aviation hub, aligning with Vision 2030 goals to expand annual passenger capacity to 330 million, increase air cargo volumes to 4.5 million tonnes, and connect to 250 global destinations by the end of the decade. 

Peter Bellew, chief operating officer at Riyadh Air, said: “This milestone underscores our commitment to world-class pilot training and operational excellence. The advanced simulator will enhance our pilots’ capabilities, aligning with Riyadh Air’s ambition to redefine aviation standards and deliver a next-level flying experience.” 

He added: “We will continue investing in cutting-edge solutions that drive efficiency, safety, and excellence across our operations.” 

Captain Sulaiman Al-Muhaimedi, GACA’s executive vice president for aviation safety and environmental sustainability, presented the operational certificate to Bellew during a ceremony. 

Riyadh Air, a subsidiary of the Public Investment Fund launched by Crown Prince Mohammed bin Salman in March 2023, completed its first non-commercial flight from Riyadh to Jeddah for certification on Sept. 12. 


Jordan’s exports to GAFTA countries rise by 15.6%

Updated 29 min 7 sec ago
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Jordan’s exports to GAFTA countries rise by 15.6%

RIYADH: Jordan’s exports to countries within the Greater Arab Free Trade Area recorded a year-on-year rise of 15.6 percent by the end of November, new figures revealed

According to official statistics compiled by the Jordan News Agency, the Middle Eastern nation’s exports to GAFTA countries reached 3.25 billion Jordanian dinars ($362 billion), up from 2.81 billion dinars in the same period of the previous year. Jordan’s exports to the 18 GAFTA countries include fertilizers, pharmaceuticals, and agricultural products. 

Similarly, the data showed that Jordan’s imports from the free trade zone also grew during the same period, rising by 8.5 percent to reach 4.69 billion dinars.

Imports from GAFTA countries primarily consist of crude oil and its derivatives, jewelry, and food products, as well as plastic sheets, titanium oxide, polystyrene, iron, and steel products, among others. 

The newly released data falls in line with the recent rise in exports and imports recorded between Jordan and GAFTA countries, which jumped 9.7 percent and 9.3 percent, respectively, in the first three months of 2024.

The data also showed that the increase in exports and imports helped reduce the trade deficit with GAFTA countries to 1.43 billion dinars, down from 1.50 billion dinars in the same period last year.

Meanwhile, trade volume between Jordan and GAFTA countries surged to 7.95 billion dinars by the end of November, compared to 7.14 billion dinars in the same period a year earlier. 

Saudi Arabia emerged as Jordan’s top export destination within the group, with exports to the country amounting to 1.07 billion dinars, a 13.7 percent rise from the same period in 2023.

The Kingdom also ranked as Jordan’s largest import source, with exchange totaling 2.69 billion dinars, resulting in a trade deficit of 1.66 billion dinars with Saudi Arabia by the end of November.

Jordan’s exports to US surges 14.9 percent

Additional data from Jordan News Agency disclosed that the country’s exports to the US increased 14.9 percent year on year in the first 11 months of 2024 to reach 2.04 billion dinars.

The country’s primary exports to the North American country include garments, jewelry, fertilizers, and pharmaceuticals as well as IT services, food products, live animals, and engineering goods.

Similarly, the data showed that Jordan’s imports from the US hit 1.13 billion dinars during the period, reflecting 4.7 rise compared to the corresponding period in 2023. 

Jordan’s imports from the US consist of mineral products, transportation equipment, machinery, electrical appliances, and grains as well as chemicals, medical devices, processed foods, and wood pulp, among others.

This is in line with the fact that the trade partnership between the two nations was strengthened by the Free Trade Agreement, which was signed in October 2000 and took full effect in January 2010. This deal has led to an eightfold surge in bilateral trade, highlighting its importance in fortifying economic connections.

As a result of the rise in exports and imports, the trade balance between Jordan and the US recorded a surplus of 910 million dinars during the period.

The total volume of trade between the two countries climbed to 3.17 billion dinars by the end of November, compared to 2.86 billion dinars in the same period of 2023. 


Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

Updated 27 January 2025
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Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

RIYADH: Industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh, where key announcements highlighted Saudi Arabia’s ongoing focus on property development, investment strategies, and tourism expansion.

Building on these initiatives, the Governor of Asir Region Prince Turki Bin Talal revealed that the Public Investment Fund has nine projects in development, with four already launched and five underway. 

“The largest PIF projects in the Kingdom are in the Asir region,” the governor said, adding that this is accompanied by an investment portfolio valued at SR30 billion ($7.9 billion).

Regarding hospitality, the governor highlighted that Asir currently has between 6,000 and 8,000 approved and licensed hotel rooms.

In line with this momentum, he also announced that the Ministry of Sports has officially recognized Abha’s World Cup bid as the best in the Kingdom.

Meanwhile, Prince Saud Bin Talal, governor of Al-Ahsa and acting CEO of the Al-Ahsa Development Authority, outlined plans for expanding the hospitality sector in the region. 

“In our pipeline, we have more than seven or eight hotels and over 25 rural lodges. Among the key developments are three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said.

The Saudi Minister of Tourism Ahmed Al-Khateeb underscored the rapid growth of the hospitality sector, revealing that the Kingdom currently has 475,000 hotel rooms, with projections to reach 675,000 by 2030. 

Regarding hyper-tourism, he discussed the impact of the King Salman International Airport expansion and Riyadh Air, forecasting that at least 50 percent of the Kingdom’s tourism will be centered in the capital, while ensuring that efforts will not push the figure beyond 80–90 percent.

The expansion of King Salman International Airport is a key milestone in Saudi Arabia’s aviation growth, aligning with the country’s Vision 2030 objectives.

The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, increasing the airport’s capacity to accommodate up to 7 million passengers annually.

This follows the completion of Terminals 3 and 4 in November 2022. 

The airport has consistently been recognized as the Kingdom’s top-performing facility, upholding the highest compliance and operational standards.

In the financial sector, the Chairman of the Capital Market Authority Mohammed El-Kuwaiz highlighted the increasing focus on Saudi Arabia’s real estate investment market. 

“Today, we have approximately 55 files for IPOs (initial public offerings) in the financial market, covering various sizes and companies. Around 20 percent of these files belong to real estate companies of different types,” he said.

He emphasized the growing diversity in real estate services, including developers and marketers, aligning with the Kingdom’s goal of securing financing across all productive sectors.

El-Kuwaiz further provided insights into best practices for listing companies, saying: “The best time to list a company is when its financial situation is stable and its funding needs are clear.”

He added: “If you’re prepared to share information as if they were partners, involve them in decision-making as if they were partners, and handle conflicts of interest as if they were partners, then you’re welcome.”

In a landmark decision, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors, effective immediately. “On behalf of the CMA, we congratulate these companies,” he said.

Foreigners can now invest in Saudi-listed firms owning real estate in Makkah and Madinah, with non-Saudi ownership capped at 49 percent. The CMA said in a press release that the move enhances market competitiveness and supports Vision 2030.

The Real Estate Future Forum, running from Jan. 27 to 29 at the Four Seasons Hotel in Riyadh, aims to serve as a global platform for shaping the future of real estate. 

With over 300 speakers from 85 countries, the event will focus on innovations, sustainability efforts, and investment strategies driving the sector under the theme, “Future for Humanity: Shaping Dreams into Reality.”


Saudi Arabia opens door for foreign investment in Makkah and Madinah real estate 

Updated 27 January 2025
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Saudi Arabia opens door for foreign investment in Makkah and Madinah real estate 

RIYADH: Foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah, following a landmark decision by the Saudi Capital Market Authority.

Effective immediately, the move aims to boost the capital market’s competitiveness and align with the Kingdom’s Vision 2030 economic diversification objectives, the CMA announced in a press release. 

While non-Saudis are allowed to purchase properties in the Kingdom, there are specific restrictions, and in the holy cities ownership is generally limited to Saudi nationals — although foreigners are allowed to lease properties there. 

Under the new guidelines, foreign investments are limited to shares or convertible debt instruments of listed companies. Total non-Saudi ownership, including individuals and legal entities, is capped at 49 percent of a company’s shares.

However, strategic foreign investors are prohibited from holding stakes in these companies. 

The move comes amid reforms across the region, with most neighboring countries allowing foreigners to own properties, primarily in free zones or designated areas under certain restrictions. 

“Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” said the CMA. 

The changes are also designed to stimulate foreign direct investment in the Kingdom’s capital market, as well as bolster its regional and international competitiveness. 

“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” added the CMA. 

Strengthening the real estate sector and attracting more FDI into the Kingdom is one of the key goals outlined under the Vision 2030 program, as Saudi Arabia aims to reduce its dependence on crude revenues and diversify its economy. 

The Kingdom aims to attract $100 billion in FDI by the end of this decade, and the government body has been implementing various initiatives and reforms to enhance the attractiveness of the capital market.

Some of these efforts include allowing foreign residents to directly invest in the stock market, enabling non-Saudi investors to access the market through swap agreements, and permitting qualified foreign capital institutions to invest in listed securities. 

The CMA has also allowed foreign strategic investors to acquire strategic stakes in listed companies and directly invest in debt instruments. 

In 2021, the CMA also allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah, which played a crucial role in increasing the attractiveness of the capital market to both regional and international investors. 

The share prices of real estate companies listed on Saudi Arabia’s stock exchange surged following the CMA’s announcement. 

Knowledge Economic City saw its share price rise by 9.89 percent to SR16.66 ($4.44) at 12:45 p.m. Saudi time. 

Jabal Omar Development Co.’s share price also increased by 10 percent to SR25.85, while Makkah Construction and Development Co.’s stock price climbed 9.84 percent to SR106, at 12:45 p.m. Saudi time. 


Oil Updates — crude falls as Trump repeats call for OPEC to cut prices

Updated 27 January 2025
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Oil Updates — crude falls as Trump repeats call for OPEC to cut prices

  • Trump reiterated call for OPEC to cut oil prices
  • OPEC+ yet to react to Trump’s call for lower prices
  • US puts on hold threat to slap tariffs on Colombia

SINGAPORE: Oil prices slipped on Monday after US President Trump called on OPEC to reduce prices following the announcement of wide-ranging measures to boost US oil and gas output in his first week in office.

Brent crude futures dropped 53 cents, or 0.68 percent, to $77.97 a barrel by 7:30 a.m. Saudi time after settling up 21 cents on Friday.

US West Texas Intermediate crude was at $74.16 a barrel, down 50 cents, or 0.67 percent.

Trump on Friday reiterated his call for the Organization of the Petroleum Exporting Countries to cut oil prices to hurt oil-rich Russia’s finances and help bring an end to the war in Ukraine.

“One way to stop it quickly is for OPEC to stop making so much money and drop the price of oil ... That war will stop right away,” Trump said.

Trump has also threatened to hit Russia “and other participating countries” with taxes, tariffs and sanctions if a deal to end the war in Ukraine is not struck soon.

Russian President Vladimir Putin said on Friday that he and Trump should meet to talk about the Ukraine war and energy prices.

“They are positioning for negotiations,” said John Driscoll of Singapore-based consultancy JTD Energy, adding that this creates volatility in oil markets.

He added that oil markets are probably skewed a little bit to the downside with Trump’s policies aimed at boosting US output as he seeks to secure overseas markets for US crude.

“He’s going to want to muscle into some of the OPEC market share so in that sense he’s kind of a competitor,” Driscoll said.

However, OPEC and its allies including Russia have yet to react to Trump’s call, with OPEC+ delegates pointing to a plan already in place to start raising oil output from April.

Both benchmarks posted their first decline in five weeks last week as concerns eased about sanctions on Russia disrupting supplies.

Goldman Sachs analysts said they do not expect a big hit to Russian production as higher freight rates have incentivized higher supply of non-sanctioned ships to move Russian oil while the deepening in the discount on the affected Russian ESPO grade attracts price-sensitive buyers to keep purchasing the oil.

“As the ultimate goal of sanctions is to reduce Russian oil revenues, we assume that Western policymakers will prioritize maximizing discounts on Russian barrels over reducing Russian volumes,” the analysts said in a note.

Still, JP Morgan analysts said some risk premium is justified given that nearly 20 percent of the global Aframax fleet currently faces sanctions.

“The application of sanctions on the Russian energy sector as leverage in future negotiations could go either way, indicating that a zero risk premium is not appropriate,” they added in a note.

On another front, Washington swiftly reversed plans to impose sanctions and tariffs on Colombia, after the South American nation agreed to accept deported migrants from the US, the White House said in a statement late on Sunday.

Sanctions could have disrupted oil supply, as Colombia last year sent about 41 percent of its seaborne crude exports to the US, according to data from analytics firm Kpler.