Saudi banks’ financing of imports to private sector exceeds pre-pandemic levels to $10.6bn in Q2

Looking at suppliers’ geography, the Gulf Cooperation Council contributed 40 percent of imports financed through LCs settled at Saudi banks (excluding bills), totaling SR10.1 billion in the second quarter of 2022.
Looking at suppliers’ geography, the Gulf Cooperation Council contributed 40 percent of imports financed through LCs settled at Saudi banks (excluding bills), totaling SR10.1 billion in the second quarter of 2022.
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Updated 18 August 2022

Saudi banks’ financing of imports to private sector exceeds pre-pandemic levels to $10.6bn in Q2

Saudi banks’ financing of imports to private sector exceeds pre-pandemic levels to $10.6bn in Q2

CAIRO: Saudi Arabia’s private sector import financing surpassed pre-pandemic levels totaling SR39.6 billion ($10.6 billion) in the second quarter of 2022 year-on-year, according to data released by the Saudi Central Bank, also known as SAMA.

Private sector imports financed through settled letters of credit and bills received increased by SR5 billion in the second quarter of 2022 year-on-year, surpassing the pre-pandemic aggregate of SR34.8 billion.

During the COVID-19 pandemic, import financing dropped to SR30 billion in the second quarter of 2020, the data showed.

It then recovered to SR34.6 billion in the second quarter of 2021 as the global economy started to rebound. In 2022, import financing hit its highest level since the third quarter of 2016.

Financing to import building materials, machinery, and textiles and clothing saw an increase of SR815 million, SR551 million, and SR38 million respectively in the second quarter of this year compared to the same period a year ago.

HIGHLIGHTS

Private sector imports financed through settled letters of credit and bills received increased by SR5 billion in the second quarter of 2022 year-on-year.

Financing to import building materials, machinery, and textiles and clothing saw an increase of SR815 million, SR551 million, and SR38 million respectively.

The main driver of positive change in the value of the private sector’s imports financed through settled LCs and bills received was the 'other goods.'

Food grains, and fruits and vegetables both increased by SR451 million and SR65 million year on year in the second quarter respectively.

The three sectors accounted for 10 percent, 3.7 percent and 0.5 percent respectively of the total import financing.

The main driver of positive change in the value of the private sector’s imports financed through settled LCs and bills received was the “other goods.” This category totaled half of the total financing and increased by SR4.3 billion year on year this quarter.

Nevertheless, LC and bill financings for the Saudi importers of foodstuffs declined by SR214 million in the second quarter compared to the same period of 2021, showed the data.

Foodstuff, which made up 12.7 percent of the total financing for the private sector’s imports, had categories that both grew and shrunk in the past year.

Food grains, and fruits and vegetables both increased by SR451 million and SR65 million year on year in the second quarter respectively.

Sugar, tea and coffee, livestock and meat and other foods all saw a yearly decline in imports financed through settled LCs and bills by Saudi commercial banks. Sugar, tea and coffee made up 0.4 percent of the total financing, and fell by SR147 million in this quarter compared to the same quarter in 2021.

Livestock and meat made up 0.82 percent of the total, and witnessed a year-on-year decline  by SR212 million in the second quarter of 2022. Whereas other foodstuffs made up 6.5 percent of the total, and dropped by SR371 million in the second quarter of 2022 compared to the same period in 2021, showed the data.

Apart from the fall in value of agricultural imports financed through LCs and bills, the financing for motor vehicle imports also fell by SR265 million, and appliances also fell by SR144 million year on year in the second quarter. 

Looking at suppliers’ geography, the Gulf Cooperation Council contributed 40 percent of imports financed through LCs settled at Saudi banks (excluding bills), totaling SR10.1 billion in the second quarter of 2022.

A report published by the International Trade Administration stated: “Saudi Arabia has signed various trade agreements (especially with the GCC) that allow member countries total exemption from customs duties.”

Asian countries other than China, Japan and South Korea came in second with 22.9 percent of settled LCs which recorded SR5.7 billion in the second quarter.

Western Europe, China and South Korea followed with 10.2 percent, 8.4 percent, and 7.1 percent.

 


SAPTCO wins $23m bus transportation project with Taif Municipality

SAPTCO wins $23m bus transportation project with Taif Municipality
Updated 15 sec ago

SAPTCO wins $23m bus transportation project with Taif Municipality

SAPTCO wins $23m bus transportation project with Taif Municipality

RIYADH: The Saudi Public Transport Co. has been awarded an SR88 million ($23 million) bus project with Taif Municipality.

The five-year project will have a positive impact on the company's revenues during the first half of 2023, it said in a bourse filing.

Founded in 1979, SAPTCO operates urban buses in Riyadh, Jeddah, and Mecca; intercity buses; and international buses to the UAE, Egypt, Jordan, and Bahrain.


Capital Market Authority approves amending business list of BNP Paribas Saudi Arabia

Capital Market Authority approves amending business list of BNP Paribas Saudi Arabia
Updated 10 min 51 sec ago

Capital Market Authority approves amending business list of BNP Paribas Saudi Arabia

Capital Market Authority approves amending business list of BNP Paribas Saudi Arabia

RIYADH: Saudi Arabia’s Capital Market Authority has approved the request of BNP Paribas Investment Co. to amend the list of businesses it is licensed to practice.

Following the amendment, the investment service provider will be authorized to conduct dealing, keeping, arranging, and advising in securities business, according to a statement. 

Established in 2009, BNP Paribas Investment Co. Saudi Arabia is a private limited company based in Riyadh.

Operating in the investment services sector, the organization is owned by French-based enterprises.

In March 2021, BNP Paribas appointed Reema Al-Asmari as head of territory for Saudi Arabia, to bolster the French bank’s corporate and investment banking presence in the Kingdom.

This comes in line with the Kingdom’s Vision 2030’s reform plan, as Saudi Arabia aims for female participation in the labor force to be at 30 percent by 2030, a target it has now achieved ahead of schedule.

The appointment came following a report by the global ratings agency Moody’s that found that rising female participation in the labor force has the potential to boost Saudi Arabia’s non-oil growth and improve average household incomes.


Saudi Arabia’s wealth fund hires banks for debut green bonds, shows document

Saudi Arabia’s wealth fund hires banks for debut green bonds, shows document
Updated 10 min 56 sec ago

Saudi Arabia’s wealth fund hires banks for debut green bonds, shows document

Saudi Arabia’s wealth fund hires banks for debut green bonds, shows document

DUBAI: Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, has hired a large group of banks including Citi and JPMorgan to arrange a debut issuance of multi-tranche US dollar-denominated green bonds, a document showed on Tuesday.
BNP Paribas, Citi, Deutsche Bank, Goldman Sachs and JPMorgan, mandated as joint global coordinators and active book-runners, will organize investor calls starting on Tuesday.
A debut issuance in tranches of five, 10 and potentially a longer-dated tenor will follow, subject to market conditions. The issuance will be under GACI First Investment Co. and guaranteed by PIF.
Credit Agricole, First Abu Dhabi Bank, HSBC, Mizuho, SMBC Nikko, SNB Capital, Societe Generale and Standard Chartered are also active book-runners, while ANB Capital, BofA Securities, Bank of China, GIB Capital, ICBC, IMI Intesa Sanpaolo, Morgan Stanley, MUFG, Natixis, Riyad Capital and Saudi Fransi Capital are also on the deal. 


MENA Project Tracker — DEWA awards advisory services contract; Iraq to complete $1bn airport by end of 2023

MENA Project Tracker — DEWA awards advisory services contract; Iraq to complete $1bn airport by end of 2023
Updated 58 min 30 sec ago

MENA Project Tracker — DEWA awards advisory services contract; Iraq to complete $1bn airport by end of 2023

MENA Project Tracker — DEWA awards advisory services contract; Iraq to complete $1bn airport by end of 2023

RIYADH: Emirates Water & Electricity Co. has awarded the contract to develop the Mirfa 2 seawater reverse osmosis project to a consortium led by France’s Engie, reported MEED.

The Engie-led team offered to develop the 120 million imperial gallons a day independent water plant for $48.32 cents a cubic meter, winning the contract over Spain's Acciona by $3.9 c/cm.

DEWA awards advisory services contract

Dubai Electricity & Water Authority has selected a team led by UK-based Deloitte for the advisory services contract on the development of the Hassyan seawater reverse osmosis independent water project, reported MEED.

It shares this title of ‘legal advisor’ with two other companies — Canadian engineering firm WSP and the UK’s Addleshaw Goddard.

The team placed a bid of 2.09 million dirhams ($570,000) to beat its competitors in the contract.

Bank Muscat credits $101m to Galfar

Bank Muscat has agreed to loan Galfar Engineering & Contracting credit facilities of 39 million Omani rials ($101 million) on their projects, reported MEED.

“We are pleased to further strengthen our partnership with Bank Muscat by concluding this bespoke agreement to facilitate execution of three major projects, which are part of the infrastructure development of our beloved nation,” said Hamoud Al-Tobi, CEO of Galfar.

Ora Developers grants $49m construction contracts

Egypt-based Ora Developers has granted two $49 million construction contracts to Redcon Construction and Concrete Plus for phase one of ZED East project in New Cairo, according to Zawya.

The scope of work in phase one includes constructing 400 residential units — consisting of apartments, duplexes, townhouses, and villas — stretching over 56 acres of land.

The project is expected to be complete by 2025.

Iraq to complete $1bn airport by end of 2023

Iraq is set to complete the first phase of the $1 billion Karbala Airport by the end of 2023, as part of its post-war rebuilding initiative, reported Zawya.

Upon its completion, the airport will hold a capacity of three million passengers.

“We hope that phase one of this strategic project will be completed next year and it will be formally inaugurated at the end of 2023,” stated Suha Al-Najjar, head of the National Investment Commission.


Qatar Airways and British Airways form joint business to add 42 new countries 

Qatar Airways and British Airways form joint business to add 42 new countries 
Updated 27 September 2022

Qatar Airways and British Airways form joint business to add 42 new countries 

Qatar Airways and British Airways form joint business to add 42 new countries 

RIYADH: In the largest joint partnership of its kind, Gulf carrier Qatar Airways and European airline British Airways have joined hands to offer an expansive network of international flights to their customers.   

The partnership will see both the airlines adding 42 new countries to their shared network, which includes Italy, Norway, Singapore, Sweden, and the Maldives, spreading across Africa, Asia, Europe, Oceania and the Middle East.

“This is a huge milestone in our long-standing relationship with Qatar Airways, an airline that shares our passion for customer service, choice and flexibility,” said Sean Doyle, chairman and CEO of British Airways.

With the joint business coming into effect, the airlines will now offer customers a network spanning over 185 destinations across more than 60 countries.

The customers of Qatar Airways and British Airways will also have a wider range of prices, schedules, and loyalty programs, as well as more options of direct and connecting flights through London and Doha, according to a press release.

The other benefits include having the freedom to engage with both airlines’ loyalty programs, and earning and spending Avios, their common currency. They will also be able to transfer and combine balances and claim premiums from both the Qatar Airways Privilege Club and the British Airways Executive Club, the release added. 

The airlines said this is all part of their plan to “move further together” by enhancing the joint network and providing passengers with the best of both airlines.

“The growing collaboration between Qatar Airways and British Airways shows our customers our common goal to offer an unparalleled network with unique benefits. Travelers can now experience the best in quality and service as they travel across our joint network,” said Qatar Airways Group Chief Executive Akbar Al Baker.