Saudi Arabia unveils SR120bn business support war chest to fight virus pandemic

Saudi Arabia has suspended domestic flights, trains, buses and taxis for 14 days in a heightened effort to stop the spread of the COVID-19. (AFP)
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Updated 21 March 2020

Saudi Arabia unveils SR120bn business support war chest to fight virus pandemic

  • Immediate steps to ensure the safety of its citizens and residents
  • The Kingdom would do whatever required to tackle the crisis, say health minister

JEDDAH: Saudi government ministers on Friday announced a war chest of more than SR120 billion ($32 billion) to fight the “unprecedented” health and economic challenges facing the country as a result of the killer coronavirus pandemic.

During a press conference in Riyadh, finance minister and acting minister of economy and planning, Mohammed Al-Jadaan, unveiled a SR70 billion stimulus package to support the private sector, especially small- and medium-sized enterprises (SMEs) and businesses worst-hit by the virus outbreak.

And the Saudi Arabian Monetary Authority (SAMA) has also sidelined SR50 billion to help the Kingdom’s banking sector, financial institutions and SMEs.

Al-Jadaan said the government had introduced tough measures to protect the country’s citizens while immediately putting in place a financial safety net. He added that the Kingdom was moving decisively to address the global COVID-19 disease crisis and cushion the financial and economic impact of the outbreak on the country.

The SR70 billion package of initiatives revealed by the minister will include exemptions and postponement of some government dues to help provide liquidity for private-sector companies.

Minister of Health Dr. Tawfig Al-Rabiah noted the raft of precautionary measures that had been introduced by the Kingdom in cooperation with the private sector and government agencies to combat the spread of the coronavirus, highlighting the important contribution of the data communication services sector.

He reassured the Saudi public that the Kingdom would continue to do whatever was required to tackle the crisis.

“This pandemic has a lot of challenges. It’s difficult to make presumptions at this moment as we’ve seen; many developed countries did not expect the rate of transmission of this virus.

“We see that the reality of the situation is different from what many expected. The virus is still being studied and though we know the means of transmission, it is transmitted at a very fast rate, having spread to many countries faster than expected.

“We see that many countries have not taken the strong precautionary measures from the beginning of the crisis which led to the vast spread of the virus in these countries,” Al-Rabiah said.

He pointed out that social distancing would help slow the spread.

Al-Jadaan said the Saudi government had the financial and economic capacity to deal with the situation. “We have large reserves and large investments, but we do not want to withdraw from the reserves more than what was already announced in the budget. We do not want to liquidate any of the government’s investments so we will borrow.

“We have approval from the government after the finance committee raised its recommendations to increase the proportion of the domestic product borrowing from 30 percent to 50 percent. We do not expect to exceed 50 percent from now until the end of 2022,” he added.

The government would use all the tools available to it to finance the private sector, especially SMEs, and ensure its ongoing stability.

The finance minister said that at this stage it was difficult to predict the economic impact of the pandemic on the private sector, but he emphasized that international coordination, most notably through G20 countries and health organizations, was ongoing.

On recorded cases of the COVID-19 disease in the Kingdom, Al-Rabiah said: “Many of the confirmed cases are without symptoms, this is due to the precautionary measures being considered.

“As soon as a case is confirmed, we contact and examine anyone who was in direct contact with the patient. This epidemiological investigation, is conducted on a large scale to investigate any case that was in contact with the patient.”

Al-Jadaan also announced the formation of a committee made up of the ministers of finance, economy and planning, commerce, and industry and mineral resources, along with the vice chairman of the board of the Saudi National Development Fund, and its governor.

The committee will be responsible for identifying and reviewing incentives, facilities, and other initiatives led by the fund.

Committees had also been established, said Al-Jadaan, to study the impact and repercussions of the coronavirus crisis on all sectors and regions, and look at ways of overcoming them through subsidies or stimulus packages.

 
 


KSRelief dispatches help for Lebanese medical teams treating explosion victims 

Updated 05 August 2020

KSRelief dispatches help for Lebanese medical teams treating explosion victims 

RIYADH: The King Salman Humanitarian Aid and Relief Center (KSRelief) has assisted Lebanese medical teams treating victims of the Beirut explosion on Tuesday.

Emergency teams from the Souboul Al Salam Relief Team, which is funded by KSRelief, went from north of Lebanon to Beirut to support medical teams on the ground. 

Another team from Al-Amal Medical Center, also funded by KSRelief, provided emergency health care services and started a blood donation campaign to meet the demand of Beirut hospitals.

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The prime minister of Lebanon, which is already struggling with an economic crisis and battling COVID-19, has made a desperate plea for help following Tuesday’s deadly explosions.
Kuwait said it has delivered medical aid and other essentials by a military plane on Wednesday morning.
The World Health Organization and the International Federation of Red Cross and Red Crescent Societies were sending 40 tonnes of medical supplies, including personal protective equipment to Beirut on a flight paid for by Dubai-based International Humanitarian City, a hub for humanitarian emergency preparedness and response, a WHO representative said.
"We are offering medical trauma kits and surgical kits containing things such as syringes, bandages and surgical gowns," said Nevien Attalla, operations manager for the WHO's Dubai hub.

*With agencies