Top marks for economic reforms as Vision 2030 boosts confidence

Updated 08 August 2016
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Top marks for economic reforms as Vision 2030 boosts confidence

JEDDAH: The International Monetary Fund’s (IMF) encouraging assessment underscores the Saudi government's commitment to fiscal discipline and comes two years after it warned of the Kingdom's fiscal ruin, a top economist told Arab News Sunday.
“It's encouraging that the IMF sees a lower fiscal deficit albeit low growth for 2016 and 2017,” said John Sfakianakis, director of economic research at the Gulf Research Center.
“Saudi Arabia has embarked on the largest economic reform project over the last decades which the IMF acknowledges undoubtedly given its depth and breadth for an oil dominant economy,” Sfakianakis said.
A senior Saudi economist added that the Kingdom’s economy is stabilizing after the government implemented pivotal reforms.
Saudi Vision 2030 and the National Transformation Program (NTP) 2020 have made international financial institutions such as the IMF to change their views of the Kingdom’s economic progress, Said Al-Shaikh, chief economist at the National Commercial Bank, told Arab News.
“Over the course of 2016, several initiatives have been introduced, such as establishing of an SME commission and a venture capital fund besides passing of several laws including commercial laws,” the economist added.
In a recent report, Al-Rajhi Capital Research said the IMF expects the Saudi economy to stabilize its GDP growth to 2.25 percent, implying steady improvement over the next couple of years (1.2 percent in 2016).
Speaking to Bloomberg recently, Tim Callen, the IMF’s Saudi mission chief, commented: “The fiscal adjustment is under way. The government is very serious in bringing about that fiscal adjustment.
Callen added: “We’re happy with the progress that’s being made.”
In a related development, economists said that second-quarter earnings in Saudi Arabia’s petrochemical industry beat expectations as producers reaped the benefits of volatile oil prices.


US intelligence says Huawei funded by Chinese state security: report

Updated 20 April 2019
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US intelligence says Huawei funded by Chinese state security: report

  • The accusation comes at a time of trade tensions between Washington and Beijing
  • Huawei dismissed the allegations

US intelligence has accused Huawei Technologies of being funded by Chinese state security, The Times said on Saturday, adding to the list of allegations faced by the Chinese technology company in the West.
The CIA accused Huawei of receiving funding from China’s National Security Commission, the People’s Liberation Army and a third branch of the Chinese state intelligence network, the British newspaper reported, citing a source.
Earlier this year, US intelligence shared its claims with other members of the Five Eyes intelligence-sharing group, which includes Britain, Australia, Canada and New Zealand, according to the report.
Huawei dismissed the allegations in a statement cited by the newspaper.
“Huawei does not comment on unsubstantiated allegations backed up by zero evidence from anonymous sources,” a Huawei representative told The Times.
The company, the CIA and Chinese state security agencies did not respond immediately to requests for comment.
The accusation comes at a time of trade tensions between Washington and Beijing and amid concerns in the United States that Huawei’s equipment could be used for espionage. The company has said the concerns are unfounded.
Authorities in the United States are probing Huawei for alleged sanctions violations.
Meng Wanzhou, Huawei’s chief financial officer and daughter of its founder, Ren Zhengfei, was arrested in Canada in December at the request of the United States on charges of bank and wire fraud in violation of US sanctions against Iran.
She denies wrongdoing and her father has previously said the arrest was “politically motivated.”
Amid such charges, top educational institutions in the West have recently severed ties with Huawei to avoid losing federal funding.
Another Chinese technology company, ZTE Corp. , has also been at the center of similar controversies in the United States.
US sanctions forced ZTE to stop most business between April and July last year after Commerce Department officials said it broke a pact and was caught illegally shipping US-origin goods to Iran and North Korea. The sanctions were lifted after ZTE paid $1.4 billion in penalties.
Reuters reported earlier this week that the United States will push its allies at a meeting in Prague next month to adopt shared security and policy measures that will make it more difficult for Huawei to dominate 5G telecommunications networks.