Value of Saudi logistics sector to reach SR67.5bn by 2015

Updated 11 January 2015

Value of Saudi logistics sector to reach SR67.5bn by 2015

Saudi Arabia’s logistics sector is poised for further significant expansion in 2015.
According to industry experts, the value of the local industry is expected to reach SR67.5 billion during this year.
Saudi Arabia’s thriving sector is reflective of the entire GCC’s flourishing industry.
In 2013, GCC countries secured the biggest number of logistics contracts in the whole of the Middle East thanks largely to significant investments, high consumer spending and rapid economic growth.
For 2015, logistics sector in the GCC region is expected to achieve a 6.9 percent growth rate.
In line with the positive projections, Ramatan Exposition and Conference together with Riyadh Exhibitions Company (REC) are organizing the second Trans 4 Saudi Arabia Exhibition, a leading Saudi exhibition and forum for Railways, Metro, Stations, Buses, Contracting and Services, from Jan. 25 to Jan. 28, at the Riyadh International Convention and Exhibition Center (RICEC).
The event will showcase a wealth of current and future opportunities in the Kingdom and other GCC states. The show is a key initiative designed to help further the rapidly expanding local and regional sectors.
During the four-day event, an extensive array of the latest products, equipment, technologies, solutions and services from leading companies and biggest organizations will be put on display.
As the largest marketplace for transport, logistics and freight in the Kingdom, it will cover numerous areas including air freight, integrated transportation modes, courier services, air, land and sea transportation, combined transportation systems, electronic data interchange systems, Enterprise Resource Planning (ERP) systems, e-services, distribution services, free zone equipment and services, and insurance companies and services, among others.
The prestigious exhibition will serve as an ideal platform for industry peers to network with each other and explore business opportunities to boost the local and regional sectors.
It will also offer key government decision makers, transportation bodies, port authorities and industry professionals the opportunity to announce initiatives, formulate strategies, discuss up-to-the-minute case studies and exchange information on global best practices.

SAMA to become Saudi Central Bank, with full independence

Updated 25 November 2020

SAMA to become Saudi Central Bank, with full independence

  • New central bank to be linked directly to king but its president independent of government
  • Bank’s core responsibilities to maintain monetary reserves, boost confidence, trust in financial sector

RIYADH: The Council of Ministers on Tuesday approved a new law which includes changing the name of the Saudi Arabian Monetary Authority (SAMA) to the Saudi Central Bank.

Under the legislation, the new Saudi Central Bank will be linked directly to the monarch and will enjoy full financial and managerial independence.

The Saudi Central Bank Law set out three core objectives for the new institution namely, to maintain cash stability, boost confidence and trust in the financial sector, and support economic growth.

The new legislation states that the central bank is responsible for setting and managing monetary policy and it outlines the relationship between the bank, the government, and other international important organizations and bodies. It also sets a framework to govern the bank’s operations and decisions.

Fadhel Al-Buainain, an economic expert and member of the Shoura Council, said one of the important aspects of the Saudi Central Bank Law was that it was linked directly to the king.

“This enhances its full independence with respect to setting the monetary policy and the bank’s relationship with the government and global organizations,” he added.

The law states that the abbreviation SAMA, which was established in 1952, would remain unchanged due to its historical importance domestically and internationally.

“The fact that the bank will keep the SAMA abbreviation unchanged is important and reflects a wise decision because the abbreviation is widely-known,” Al-Buainain said.

While the SAMA acronym will remain, Hassan Alwatban, an economic consultant, outlined the differences between the monetary authority and the central bank.

For the central bank to perform its duties properly, he said it needed to be fully independent when it came to decision-making, especially decisions related to managing state funds.

Another difference was that the president of the central bank would not be under the state’s authority and their nomination would be made by a legislative authority. The government or state could not appoint or remove the president except by the most supreme judiciary authority.

Thirdly, he added, a government agency could not interfere in the bank’s affairs because the bank enjoyed full monetary power.

Alwatban told Arab News: “Therefore, changing the monetary authority to a central bank is healthy for the national economy.

“The tasks of the Ministry of Finance, which is responsible for financial policies, will be set apart from the tasks of the central bank, which is responsible for setting the monetary policies. Before the change, the tasks of the Ministry of Finance and SAMA overlapped.

“Besides, the Ministry of Finance was in charge of the financial policy and the monetary policy at the same time, a fact that made SAMA focus on serving the banks’ interests more than focusing on serving the interests of citizens,” he added.