Saudi insurers quarterly profits dragged down by higher claims

Saudi insurers quarterly profits dragged down by higher claims
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Updated 16 May 2022

Saudi insurers quarterly profits dragged down by higher claims

Saudi insurers quarterly profits dragged down by higher claims

RIYADH: Two of the Saudi-listed major insurers have reported losses in the first quarter of 2022, driven by higher claims, revealed their earning announcements on Monday. 

The Co. for Cooperative Insurance, also known as Tawuinya, saw its first-quarter profit drop by 49 percent to SR41 million ($11 million) from SR80.81 million the same period in 2021.

Al-Etihad Cooperative Insurance Co. saw its profits plunge 95 percent to SR689,910 in the first quarter compared to SR14.55 million in the first quarter of 2021, according to their bourse filings. 

Although both companies attributed the drop in their bottom lines to an increase in claims, Tawuinya added that a decrease in earnings from policyholders and shareholders also a major factor.


OPEC meeting ends without making any policy decisions

OPEC meeting ends without making any policy decisions
Updated 15 sec ago

OPEC meeting ends without making any policy decisions

OPEC meeting ends without making any policy decisions

OPEC meeting ends without making any policy decisions, according to a delegate, Reuters is reporting.

At its last meeting in early June OPEC+ decided to speed up production cuts and to raise output each month by 648,000 barrels per day in July and August, up from earlier increases of 432,000 bpd.

OPEC+ consists of OPEC and allies such as Russia.

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US firm Franklin Templeton planning to establish office in Saudi Arabia

US firm Franklin Templeton planning to establish office in Saudi Arabia
Updated 29 min 17 sec ago

US firm Franklin Templeton planning to establish office in Saudi Arabia

US firm Franklin Templeton planning to establish office in Saudi Arabia

RIYADH: US multinational holding company Franklin Templeton could transfer employees from Dubai to a new office in Saudi Arabia, Bloomberg reported, quoting people familiar with the matter. 

People who wished to stay anonymous revealed that Franklin Templeton’s CEO Jenny Johnson considers Saudi Arabia as a potential market for a major expansion. 

The report further added that the asset management company is planning to start the regulatory process to affirm its presence in Riyadh. 

The office in Riyadh will have investment teams and some sales and support on the ground, the people said. 

The workforce will be a mix of new recruits and internal transfers from the company’s employees in Dubai. 

Responding to the Bloomberg report, a spokeswoman for Franklin Templeton said: “While we have not announced any new office openings, we are currently exploring options to grow our regional footprint and will share details in due course.” 

She also added that Saudi Arabia is an important market in the region.

 


World Bank approves $500m loan for emergency food security project in Egypt

World Bank approves $500m loan for emergency food security project in Egypt
Updated 29 June 2022

World Bank approves $500m loan for emergency food security project in Egypt

World Bank approves $500m loan for emergency food security project in Egypt

RIYADH: The World Bank has approved a $500-million loan to help Egypt ensure an uninterrupted supply of bread as the country faces food security concerns amid rising prices and supply disruption due to the Russia-Ukraine war.

“This project supports the government’s strong commitment to ensuring that the needs of citizens continue to be met even amid a very challenging global context caused by concomitant crises such as COVID-19 and the war in Ukraine,” said Rania Al-Mashat, Egypt’s Minister of International Cooperation, in a press statement.

The loan given under the Emergency Food Security and Resilience Support Project will help Egypt finance the public procurement of imported wheat. This would be equivalent to one month of supply for the Bread Subsidy Program which supports around 70 million low-income Egyptians, including 31 million people who live under the national poverty line, said a press release.

Bread is a staple in Egypt and the World Bank said this new project will link wheat imports to direct assistance to the poor and vulnerable population through Egypt’s Bread Subsidy Program.

“As always we are keen to continuously support Egypt in overcoming obstacles to its ambitious sustainable development plans and to further enable the country to pave the way for a prosperous and productive future for all its citizens,” said Marina Wes, World Bank country director for Egypt, Yemen and Djibouti. 


Pivot Engineering wins $168m contract for Damac Lagoons development

Pivot Engineering wins $168m contract for Damac Lagoons development
Updated 29 June 2022

Pivot Engineering wins $168m contract for Damac Lagoons development

Pivot Engineering wins $168m contract for Damac Lagoons development

DUBAI: Emirati property development company Damac has awarded a $168.2 million construction contract for the Costa Brava cluster within its Damac Lagoons development to Pivot Engineering and General Contracting Co., MEED reported.

According to the report, the scope of work under this contract includes the construction of 976 townhouses for the project.

It was in November 2021 that the development works of the Damac Lagoons Project began in the inland Dubailand area.

The project also includes villas, townhouses, artificial beaches, and community facilities. Damac Lagoons Project which spans 45 million square feet also includes clusters named Venice, Morocco, Nice, Malta, Andalucia and Portofino.

Pivot Engineering and General Contracting Co. is headquartered in Abu Dhabi, and it has been working in the region for 44 years, according to the company website. 


Saudi Cabinet approves new companies law to drive entrepreneurship

Saudi Cabinet approves new companies law to drive entrepreneurship
Updated 29 June 2022

Saudi Cabinet approves new companies law to drive entrepreneurship

Saudi Cabinet approves new companies law to drive entrepreneurship

RIYADH: The Saudi Cabinet has approved a law allowing the creation of a new type of company in the Kingdom to boost entrepreneurship.

The new Companies law was signed off on Tuesday, and will regulate all provisions related to companies, whether commercial, non-profit or professional.

It allows a new form of company — called a Simplified Joint Stock Company — that meets the needs of entrepreneurship and venture capital growth.

It also allows the issuance of a family charter that regulates ownership in family businesses, in addition to governance, management, work policy, employment of family members and cash profits to ensure the sustainability of these companies.

“The new law will improve the financing and business dynamics in every sector in the economy, it should have a great positive impact on the economy for the next decades,” CEO of Razeen Capital, Mohammed Al Suwayed, told Arab News.

 “I can't point out a single impact because the impact is going to be happening in all of the sectors gradually,” he said.

It also reduces the legal requirements and procedures for small and medium enterprises, and simplifies the procedures for establishing companies.

Under this law, many restrictions in the incorporation, practice and exit phases and restrictions on company names have been removed.

According to the Ministry of Investment, the changes will also enhance the diversity and strength of the local market, and raise the level of competitiveness of the Saudi investment environment.

“The new corporate system came to achieve the hopes of family businesses, organize their business by concluding the family charter, encourage bold investment and address the challenges of entrepreneurs by approving the simplified joint stock company,” the Minister of Commerce Majid Al-Kassabi said. 

Real Estate Brokerage law

Another law signed off was the Real Estate Brokerage law, which aims to regulate the brokers business and provide innovative and high-quality services to beneficiaries.

“The Saudi Cabinet’s ratification of the real estate brokerage law will help ensure the reliability of real estate transactions through the Real estate General Authority,” Majid Al-Hogail, Minister of Municipal, Rural Affairs and Housing said on Twitter.

He added that It will also help raise the level of services provided and preserve the rights of customers in the sector through standards and procedures for doing business.

Al-Hogail indicated that real estate brokerage services are limited to brokers licensed by the General Real Estate Authority, and brokerage contracts and real estate transactions must be submitted electronically.

He said the commission and prepayment must be determined, and that violators will be subject to penalties under the law.

Abdullah Al-Hammad, CEO of the Real Estate General Authority, described the law as a “positive addition.”

“This law complements the legislative system that the General Real Estate Authority is working on to regulate the real estate market in the Kingdom of Saudi Arabia,” he told CNBC.