Saudi Arabia listed as 2nd-best country for expats, survey says
Updated 11 July 2024
ARAB NEWS
RIYADH: Saudi Arabia’s transformational journey has placed it as the second-best country in the world for expats, outperforming the US, the UK, and Belgium, a new survey reveals.
In the latest edition of the Expat Insider survey, the Kingdom came second to Denmark on the Working Abroad Index, with more than half of respondents in the country rating the local job market positively.
This demonstrates Saudi Arabia’s continuous growth as it jumped from ranking in the 14th position in 2023.
The index ranks countries based on four subcategories, including career prospects, salary and job security, work and leisure, and work culture and satisfaction.
Factors include local job market, career opportunities, economic conditions and job security as well as pay fairness, working hours, work-life balance, and business culture.
The Kingdom was ranked first in terms of career prospects, outperforming the US and UAE.
The survey revealed that 75 percent of expats in Saudi Arabia are much more likely to agree that the move improved their career prospects, and 62 percent rate their personal career opportunities favorably.
Furthermore, the survey showed that 82 percent are very much satisfied with the state of the local economy as the nation ranks second in the salary and job security subcategory.
However, expats face long workdays with an average of 47.8 hours a week for full-time positions as opposed to 42.5 hours globally.
This is also reflected in the ranking as the Kingdom receives its worst results in the index when it comes to expats’ working hours at 23rd place and work–life balance in 27th.
“I like how there are work opportunities for highly skilled professionals,” one Spanish expat in Saudi Arabia said, the survey revealed.
Moreover, the Kingdom was also in the top 10 countries in the Expat Essentials Index by Expat Insider.
The Expat Essentials Index evaluates the ease of obtaining visas, dealing with local bureaucracy, and opening bank accounts as well as housing affordability and availability, digital life, including online services and internet access, and language ease, covering learning and living without the local language.
Saudi Arabia was ranked 6th worldwide, surpassing nations like Singapore, Mexico, Indonesia, and Kenya.
The indexes were conducted by the global expat community InterNations.
Saudi Arabia sets up operations room for COP16 preparation
Updated 31 July 2024
Arab News
RIYADH: Saudi Arabia has set up a “joint operation room” to streamline efforts among teams to host the UN Convention to Combat Desertification in December.
Located at the National Center for Vegetation Cover Development and Combating Desertification, the room will coordinate team activities and monitor progress before, during, and after the 16th session of the Conference of the Parties, or COP16, which will be held in Riyadh from Dec. 2 to 13, the Saudi Press Agency reported.
Osama Faqiha, undersecretary for environment at the Ministry of Environment, Water and Agriculture, inaugurated the control center at the headquarters of the National Center for Vegetation Cover Development and Combating Desertification.
The facility will help enhance coordination and communication among teams, ensuring smooth operations and clear updates on tasks and achievements.
The operation room is designed to improve coordination and communication among teams, ensure the smooth execution of the conference, and enhance the overall quality of work and outputs. This aligns with COP16’s goal of mobilizing global stakeholders to combat land degradation and promote sustainable land management practices.
The conference, the first of its kind in the Middle East and the largest multilateral event hosted by Saudi Arabia with 196 participating countries, will address the significant issue of land degradation.
According to UNCCD data, up to 40 percent of the world’s land is degraded, impacting half of humanity and causing severe climate, biodiversity, and livelihood issues.
If current trends persist, restoring 1.5 billion hectares of land by 2030 will be crucial to achieving a land-degradation-neutral world.
Droughts have become more frequent and severe globally, increasing by 29 percent since 2000 due to climate change and land management practices, it added.
Currently, 25 percent of the global population is affected by droughts, and three out of four people are projected to face water scarcity by 2050.
The two-week event will feature a high-level segment and include associated events such as the Gender Caucus and the Business for Land Forum.
It will highlight ongoing efforts in Saudi Arabia, the Middle East, and beyond toward a green transition through sustainable land stewardship.
UNCCD serves as a key platform where governments, businesses, and civil society discuss land-related challenges and work towards sustainable solutions.
It is one of the three main treaties of the Rio Conventions, along with those on climate change and biodiversity.
Arab countries responsible for 96.3 percent of Japan’s oil imports in June
Saudi Arabia and the UAE dominated Japan’s imports
Kuwait contributed 5.21 million barrels (8.3 percent)
Updated 31 July 2024
Arab News Japan
TOKYO: Japan imported 62.54 million barrels of oil in June, of which the Arab share was 96.3 percent or 60.26 million barrels, according to figures released by the Agency of Natural Resources and Energy of Japan’s Ministry of Economy, Trade, and Industry.
Saudi Arabia and the UAE dominated Japan’s imports. The Saudi contribution was 25.82 million barrels, representing 41.3 percent of the total, while the UAE supplied almost the same percentage with 25.84 million barrels.
Five Arab countries – the UAE, Saudi Arabia, Kuwait, Qatar, Oman – as well as the Neutral Zone, made up most of the imports, underscoring the strategic importance of these nations in Japan’s energy security.
Kuwait contributed 5.21 million barrels (8.3 percent), followed by Qatar at 2.44 million barrels (3.9 percent). Oman supplied about half a million barrels or 0.8 percent of the total imports while the Neutral Zone’s share amounted to 0.7 percent.
With Japan continuing its ban on importing oil from Iran and Russia in June, the rest of the country’s oil imports were sourced from the United States (1.4 percent), Central and South America (1.6 percent), Southeast Asia (0.5 percent) and Oceania (0.2 percent).
Closing Bell: Saudi benchmark index edges up to close in green
Total trading turnover of the benchmark index was $1.69 billion
MSCI Tadawul Index also shed 8.94 points to close at 1,519.89
Updated 31 July 2024
Arab News
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Wednesday, gaining 44.87 points, or 0.37 percent, to close at 12,109.52.
The total trading turnover of the benchmark index was SR6.36 billion ($1.69 billion) as 64 stocks advanced, while 163 retreated.
The Kingdom’s parallel market Nomu dipped by 20.90 points, or 0.08 percent, to close at 26,651.19. This comes as 33 stocks advanced, while 29 retreated.
The MSCI Tadawul Index also shed 8.94 points, or 0.59 percent, to close at 1,519.89.
— Saudi Exchange | تداول السعودية (@tadawul) July 31, 2024
The best-performing stock of the day was Arabian Pipes Co., as its share price surged by 8.07 percent to SR142.
Other top performers included Saudia Dairy and Foodstuff Co. and Makkah Construction and Development Co., whose share prices soared by 4.76 percent and 4.29 percent, to stand at SR343.60 and SR116.80, respectively.
Al-Baha Investment and Development Co. emerged as the worst performer as its share price dropped by 7.69 percent to SR0.12.
Al Taiseer Group Talco Industrial Co. and Arabian Cement Co. also failed to perform well. Their share prices dropped by 6.69 percent and 4.76 percent to stand at SR60 and SR27, respectively.
On the announcements front, the Capital Market Authority approved the public offer by “Ashmore Investment Saudi Arabia” for “Ashmore Saudi Sharia Equity Fund.”
Retal Urban Development Co. announced that its sales surged by 65.4 percent in the first half of this year to reach SR964.3 million, compared to the same period last year.
The company attributed in a statement on Tadawul the rise in its sales to the increase in development contracts revenues by 76 percent to SR910.50 million. It detailed the reasons for the development contracts revenues surge attributing it to an increase in the number of ongoing projects from 11 to 16 projects, high completion rates and an upswing in units sold in the projects, and an increase in revenues from investment funds and joint projects.
The company’s net profit surged by 19.4 percent in the first six months of this year to reach SR 134.4 million compared to SR112.5 million in the same period last year.
The increase was primarily driven by an increase in revenues to SR964.30 million, and an increase in gross profit by 66 percent to SR255.80 million.
Nahdi Medical Co. reported positive revenue growth for the third quarter in a row, driven by an 8.9 percent increase in retail sales and substantial gains from its investments in the UAE healthcare and retail sectors. Revenue in these areas surged by 100.1 percent and 186.8 percent, respectively.
According to a statement, total revenue for the second quarter 2024 reached SR2.47 billion, up 10.8 percent from the first quarter of this year and 3.6 percent from the fourth quarter of 2023. For the first half of 2024, revenues reached SR4.73 billion, marking a SR393.6 million increase from the first half of 2023.
E-commerce contributed 23.6 percent of the second quarter’s revenues, up from 16.4 percent the previous year, with over 8,000 new products added online.
Report revealed 12% increase in revenues compared to same period last year, totaling SR353.59 billion
Taxes on goods and services constituted 50% of non-oil revenues
Updated 31 July 2024
Dayan Abou Tine
RIYADH: Saudi Arabia recorded a budget deficit of SR15.34 billion ($4.09 billion) in the second quarter of 2024, bringing the year’s first-half shortage to 35 percent of the annual forecast set by the Ministry of Finance.
The latest data indicates that the Kingdom is experiencing a lower-than-expected budget deficit for the year so far, indicating a shift in fiscal management or higher revenues than anticipated in the first half of 2024.
The ministry’s quarterly performance report also revealed a 12 percent increase in revenues compared to the same period last year, totaling SR353.59 billion. Meanwhile, expenditures rose by 15 percent, reaching SR368.93 billion.
Finance Minister Mohammed Al-Jaadan said in December that the Kingdom’s annual budget for 2024 was based on “very conservative” estimates of oil revenues.
Despite this cautious approach, the second quarter of 2024 saw an 18 percent increase in oil revenues compared to the same period of last year, totaling SR212.99 billion. Additionally, non-oil receipts rose by 4 percent, reaching SR140.6 billion.
The rise in oil revenues can be attributed to the increase in crude oil prices over the past year. In the second quarter 2024, the average crude oil price, based on the closing figure at the end of each month, was around $76.69 per barrel, compared to $71.83 for the same period in 2023.
This increase in revenues happened despite production cuts imposed by OPEC+ and additional reductions by the Kingdom, which scaled back output to 9 million barrels per day.
Taxes on goods and services drive non-oil revenues
According to the ministry, taxes on goods and services constituted 50 percent of non-oil revenues, totaling around SR70 billion.
The second-largest share, categorized as Other Revenues, accounted for 20 percent and included income from various sources such as public government units, including the Saudi Central Bank, sales from entities including advertising and port services, as well as administrative fees, fines, penalties, and confiscations.
Saudi Minister of Finance Mohammed Al-Jadaan said the Kingdom’s annual budget for 2024 was based on ‘very conservative’ estimates of oil revenues. File/AFP
Other taxes made up 17 percent, or about SR24 billion, while levies on income, profits, and capital gains accounted for 9 percent, totaling SR12.65 billion. This substantial contribution underscores the Kingdom’s efforts to diversify its income sources beyond oil, reflecting effective fiscal reforms and a broader tax base.
Saudi Arabia is actively working to diversify its economy through investments in non-oil industries such as tourism, entertainment, and renewable energy. Initiatives like Vision 2030 aim to reduce oil dependency by promoting a more diverse and sustainable economic landscape.
Expenditures
Saudi Arabia’s non-financial capital expenditure, often referred to as CAPEX, drove much of the spending growth in this period.
This category saw a 53 percent increase, totaling SR66.41 billion, and it encompasses investments in physical assets like buildings, machinery, and infrastructure, aimed at enhancing the Kingdom’s capacity and capabilities.
The ministry had indicated in its budget statement in December for the fiscal year 2024 that there will be increased spending during the coming years to expedite the implementation of key programs vital to the objectives of Saudi Vision 2030. Therefore, the quarterly deficit remains within expectations, reflecting prudent fiscal management.
Compensation to employees constituted the highest percentage share at 38 percent according to the ministry’s report and increased by 4 percent during this period. Utilization of goods and services came second making up 20 percent share and rising 19 percent compared to the same quarter last year.
This category represents the total amount spent on acquiring goods and services by the government for various purposes, such as operational activities or resale. It reflects the government’s consumption or investment in resources necessary for its operations, excluding any changes in inventory levels.
The ministry’s report indicated that the deficit will be covered through borrowing.
Domestic debt comprised 59 percent, or SR680.29 billion, of the total at the end of the period, while external borrowings made up the remaining 41 percent, totaling SR468.92 billion.
Compared to advanced economies and G20 countries, Saudi Arabia’s public debt as a percentage of GDP remains relatively low. Furthermore, it is well-supported by government reserves, providing a significant buffer against potential financial challenges or economic downturns. This strengthens the Kingdom’s fiscal stability and its capacity to meet financial obligations.
Kuwaiti lenders Boubyan Bank and Gulf Bank weigh merger
Boards of Boubyan Bank and Gulf Bank have approved the proposal
Central Bank of Kuwait was notified of their plans
Updated 31 July 2024
Reuters
DUBAI: Kuwaiti lenders Boubyan Bank and Gulf Bank are weighing a merger to create a single Islamic bank with $53 billion in assets as part of a plan to fuel growth and expansion.
The boards of Boubyan Bank and Gulf Bank have approved the proposal, and the Central Bank of Kuwait was notified of their plans, the banks said in separate regulatory filings on Wednesday.
Boubyan Bank and Gulf Bank said they plan to sign a memorandum of understanding and a non-disclosure agreement to proceed with due diligence, valuation discovery, and studying the feasibility of the proposal.
Any transaction will be subject to approval from regulators including the central bank, the filings said.
