Coalition accepts results of JIAT investigation, pledges to compensate victims

Spokesman Col. Turki Al-Maliki said the coalition is coordinating with relevant authorities to obtain the names and identities of the families of the victims and provide them with compensation. (File photo / AFP)
Updated 03 September 2018
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Coalition accepts results of JIAT investigation, pledges to compensate victims

JEDDAH: The Arab Coalition to Restore Legitimacy in Yemen said it accepts the results of the investigation of the Joint Incident Assessment Team (JIAT) following an attack on a bus last month that killed dozens.

Spokesman Col. Turki Al-Maliki said the coalition is coordinating with the local hospital in the Dahyan area in Saada province and other relevant authorities to obtain the names and identities of the families of the victims and provide them with the necessary compensation.

He also said that the  coalition is working on revising and developing its rules of engagement after the attack killed at least 29 children, according to the Red Cross and injured dozens more.

Al-Maliki confirmed that all Yemeni ports are fully operational and the coalition is working to provide the necessary facilities for the passage of aid ships.

However, he said that the Iranian-backed Houthi militia continue to threaten maritime navigation in the Bab Al-Mandab Strait and the Red Sea.

Col. Al-Maliki added that the coalition “welcomes the position of the Yemeni government" in rejecting a UN report published last week that made a series of accusations against the alliance.

The coalition also rejected the report because it contained inaccuracies and false information, the spokesman said.

Meanwhile, Al-Maliki said the Yemen National Army forces continued to advance on various fronts.


Record budget spurs Saudi economy

The budget sets out to lift spending and cut the deficit. (Shutterstock)
Updated 19 December 2018
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Record budget spurs Saudi economy

  • “It is a growth-supportive budget with both capital and current expenditure set to rise.”
  • Government spending is projected to rise to SR 1.106 trillion

RIYADH: Saudi Arabia on Tuesday announced its biggest-ever budget — with spending set to increase by around 7 percent — in a move aimed at boosting the economy, while also reducing the deficit. 

However, analysts cautioned that the 2019 budget is based on oil prices far higher than today — which could prove an obstacle in hitting targets. 

Government spending is projected to rise to SR 1.106 trillion ($295 billion) next year, up from an actual SR 1.030 trillion this year, Minister of Finance Mohammed Al-Jadaan said at a briefing in Riyadh. 

The budget estimates a 9 percent annual increase in revenues to SR 975 billion. The budget deficit is forecast at SR 131 billion for next year, a 4.2 percent decline on 2018.

“We believe that the 2019 fiscal budget will focus on supporting economic activity — investment and wider,” Monica Malik, chief economist at Abu Dhabi Commercial Bank (ADCB), told Arab News.

“It is a growth-supportive budget with both capital and current expenditure set to rise.”

A royal decree by Saudi Arabia’s King Salman, also announced on Tuesday, ordered the continuation of allowances covering the cost of living for civil sector employees for the new fiscal year.

“The continuation of the handout package will be positive for household consumption by nationals,” said Malik. “We expect to see some overall fiscal loosening in 2019, which should support a further gradual pickup in real non-oil GDP growth.”

World oil prices on Tuesday tumbled to their lowest levels in more than a year amid concerns over demand. Brent crude contracts fell to as low as $57.20 during morning trading.

Malik cautioned that the oil-price assumptions in the Saudi budget looked “optimistic.”

“We see the fiscal deficit widening in 2019, with the higher spending and forecast fall in oil revenue,” she told Arab News.

Jason Tuvey, an economist at London-based Capital Economics, agreed that the oil forecast was optimistic, but said this should not pose problems for government finances.

“The government seems to be expecting oil prices to average $80 (per barrel) next year,” he said. 

“In contrast, we think that oil prices will stay low and possibly fall a little further to $55 … On that basis, the budget deficit is likely to be closer to 10 percent of GDP. That won’t cause too many problems given the government’s strong balance sheet. 

“Overall, then, we think that there will be some fiscal loosening in the first half of next year, but if oil prices stay low as we expect, the authorities will probably shift tack and return to austerity from the mid-2019, which will weigh on growth in the non-oil sector,” Tuvey said.

John Sfakianakis, chief economist at the Gulf Research Center, based in Saudi Arabia, said that the targets of the budget were “achievable” and the forecast oil price reasonable. 

“It is an expansionary budget that should spurt private sector activity and growth,” he said. 

“With Brent crude averaging around $68 per barrel for 2018 and $66 per barrel for 2019, the authorities have applied a conservative revenue scenario.”