PIF to transfer remaining balance of Al Akaria’s $349m loan to finance ministry

PIF to transfer remaining balance of Al Akaria’s $349m loan to finance ministry
This follows a loan rescheduling agreement signed in June between Al-Akaria and the PIF, which said the loan should be repaid in nine years and six months. The loan was taken in 2015 (File/Arab News)
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Updated 14 October 2021

PIF to transfer remaining balance of Al Akaria’s $349m loan to finance ministry

PIF to transfer remaining balance of Al Akaria’s $349m loan to finance ministry
  • The real estate firm, also called Al-Akaria, said they received a letter from the sovereign wealth fund about the transfer, which will also include related rights and obligations on top of the loan balance.

DUBAI: The Public Investment Fund is set to transfer the remaining balance of the Saudi Real Estate Company’s SR1.31 billion ($349 million) loan to the Ministry of Finance.

The real estate firm, also called Al-Akaria, said they received a letter from the sovereign wealth fund about the transfer, which will also include related rights and obligations on top of the loan balance.

This follows a loan rescheduling agreement signed in June between Al-Akaria and the PIF, which said the loan should be repaid in nine years and six months. The loan was taken in 2015. 


Softbank Vision Fund, Mubadala invest in European mobility company TIER

Softbank Vision Fund, Mubadala invest in European mobility company TIER
Updated 12 sec ago

Softbank Vision Fund, Mubadala invest in European mobility company TIER

Softbank Vision Fund, Mubadala invest in European mobility company TIER

DUBAI: TIER, Europe’s micro-mobility company, announced the first close of its $200 million Series D funding round led by previous investors SoftBank Vision Fund 2, Mubadala Capital and adds new partners like M&G Investments, a green impact fund, and Mountain Partners, a diversified global investment holding.

The company, which entered the UAE market in 2020 after being selected as a leading service provider by the Roads & Transport Authority (RTA), said in a statement that the funding provides TIER with additional resources to fulfil its mission to "change mobility for good by providing the safest, most equitable and sustainable mobility solution in the market."


Telecom Zain KSA profits drop 36% for first 9 months of 2021

Telecom Zain KSA profits drop 36% for first 9 months of 2021
Updated 14 min 27 sec ago

Telecom Zain KSA profits drop 36% for first 9 months of 2021

Telecom Zain KSA profits drop 36% for first 9 months of 2021
  • The decline is due to a 1 percent drop in revenue, as well as rising revenue costs by 19 percent, the company said in a bourse filing. 

DUBAI: Saudi telecom firm Zain KSA posted a net profit of SR143 million ($38.1 million) in the first nine months of 2021, a 36 percent drop from the same period last year. 

The decline is due to a 1 percent drop in revenue, as well as rising revenue costs by 19 percent, the company said in a bourse filing. 

Lowering operating expenses and the results of the capital restructuring last year helped compensate for the fall, it added. 


Saudi Non-oil exports rose by 26.8 percent in August, official data shows

Saudi Non-oil exports rose by 26.8 percent in August, official data shows
Updated 21 min 34 sec ago

Saudi Non-oil exports rose by 26.8 percent in August, official data shows

Saudi Non-oil exports rose by 26.8 percent in August, official data shows

CAIRO: Saudi Arabian non-oil exports rose by 26.8 percent in August from a year ago, according to the General Authority of Statistics (GASTAT).


Iraq, Saudi ACWA Power close to signing a solar energy agreement

Iraq, Saudi ACWA Power close to signing a solar energy agreement
Updated 33 min 35 sec ago

Iraq, Saudi ACWA Power close to signing a solar energy agreement

Iraq, Saudi ACWA Power close to signing a solar energy agreement
  • The ministry said it is close to signing the agreement with the Saudi utility company to generate 1,000 megawatts of solar power in the Najaf Governorate.

CAIRO: Iraq is in advanced discussions to establish a solar energy project with Saudi Arabia’s ACWA Power, the oil ministry announced on its Facebook page. 

The ministry said it is close to signing the agreement with the Saudi utility company to generate 1,000 megawatts of solar power in the Najaf Governorate.


US records second-highest deficit of $2.77tn 

US records second-highest deficit of $2.77tn 
Updated 25 October 2021

US records second-highest deficit of $2.77tn 

US records second-highest deficit of $2.77tn 
  • In September, the budget deficit hit $62 billion, compared to a $125 billion deficit a year earlier and market expectations of a $60 billion gap

The US budget deficit in the fiscal year 2021 recorded the second-highest deficit ever compared to $ 3.132 trillion recorded in 2020, where the deficit for 2021 reached $ 2.772 trillion.

Revenue jumped 18.3 percent to $ 4.046 trillion amid higher income taxes on individuals and businesses due to the economy's recovery. In contrast, expenses rose by 4.1 percent to $6.818 trillion due to continued spending to counter the devastating effects of the global pandemic.

In September, the budget deficit hit $62 billion, compared to a $125 billion deficit a year earlier and market expectations of a $60 billion gap. 

The smallest budget gap since January 2020, with revenue growing 23.1 percent to $460 billion while expenses only increased 4.7 percent to $521 billion.

Too early to raise US interest rates 

Federal Reserve Chair Jerome Powell said it is early to increase borrowing rates risking slow economic recovery, in spite of a risk that high inflation in the United States could persist. 

"it would be premature to actually tighten policy by raising rates now with the effect and intent of slowing job growth," he said 

Policymakers are forecast to proclaim the slowdown of bond buying at the central bank's policy meeting next month. Still, the benchmark lending rate is forecast to continue at zero to the latest next year at the very least.

SAMA books $1bn net profit 

Saudi Central Bank (SAMA) recorded a net profit of SR3.8 billion ($1 billion ) at the end of the quarter, above the same period last year, by 0.6 billion. More than the average analysts' expectation on Refinitiv Eikon data of SR3.6 billion.

Russia raises interest rate

Russia's central bank increased the key interest rate above what was expected by 75 bps to 7.5 percent, from a forecast of a 50 bps increase, the highest since June 2019. That increased in the rouble and signaled increases as inflation showed little sign of slowing.

Japan’s Inflation up slightly

Japanese inflation rose for the first time in 13 months to 0.2 percent annually in September 2021 from a negative 0.4 percent in August 2021.

Eurozone inflation hit by supply shocks

Significant supply chain problems in factories have caused prices to rise that they did not see in the Eurozone twenty years ago.