Saudi Cabinet approves duty-free markets at ports

The decision to allow duty-free markets permits sale to passengers arriving and departing from the Kingdom.
The decision to allow duty-free markets permits sale to passengers arriving and departing from the Kingdom.
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Updated 06 September 2022

Saudi Cabinet approves duty-free markets at ports

Saudi Cabinet approves duty-free markets at ports

RIYADH: The Saudi Cabinet on Tuesday approved the establishment of duty-free markets at air, sea and land ports, the Saudi Press Agency reported.
King Salman chaired the weekly Cabinet meeting.
The decision to allow duty-free markets permits sale to passengers arriving and departing from the Kingdom.
The Cabinet also approved the establishment of the Saudi-Thai Coordination Council.
During the meeting, the ministers reviewed the discussions that took place between Saudi officials and their counterparts from different countries over the past days.
Furthermore, the Cabinet reviewed the Kingdom’s participation in G20 ministerial meetings, which were held in Bali, Indonesia, to accelerate the digital economic growth, technology and innovation, and bridging the digital gap through strategic initiatives and projects linking the world.
The meeting also approved an agreement with Ghana in the field of air transport services.


OECD inflation remains stable at 10.3% in August

OECD inflation remains stable at 10.3% in August
Updated 18 sec ago

OECD inflation remains stable at 10.3% in August

OECD inflation remains stable at 10.3% in August

RIYADH: The inflation rate across Organization for Economic Co-operation and Development countries remained broadly stable at 10.3 percent in August, 10.2 percent in July and 10.3 percent in June. 

According to a OECD press release, the headline inflation, based on the Consumer Price Index, in 16 of 38 OECD countries decreased between July and August, primarily driven by a slower increase in energy prices. 

In 15 OECD countries, the inflation rate continued in double digits, with the highest rates observed in Estonia, Latvia, Lithuania and Turkey, all above 20 percent. 

The press release further noted that energy price inflation in the OECD fell to 30.2 percent year-on-year in Aug. 2022, also down from 35.3 percent in July 2022, with declines in more than 60 percent of OECD countries.

However, both food price inflation and inflation excluding food and energy kept rising in the OECD in Aug. 2022. 


Riyadh Region Municipality offers 38 investment opportunities in private sector boost

Riyadh Region Municipality offers 38 investment opportunities in private sector boost
Updated 45 min 54 sec ago

Riyadh Region Municipality offers 38 investment opportunities in private sector boost

Riyadh Region Municipality offers 38 investment opportunities in private sector boost

RIYADH: Riyadh Region Municipality is offering 38 investment opportunities for investors in resident units, community centers, and gardens, according to the Saudi Press Agency.

The opportunities will cover an area of over 397,000 sq. m, with contracts raging from five to 25 years. 

The move is aimed at strengthening partnerships with the private sector, enabling them to participate in the economic development of the city, improving urban living, and contributing to the Kingdom's Vision 2030.

The Municipality stated that three of these investment opportunities cover a total area of 48,162 sq. m with a term of 25 years, spread across Mahdia, Al-Munsiyah, and Al-Rabie.

As well as three other opportunities in the residential and commercial fields totaling 2,607 sq. m The contracts last between 15 and 25 years and are distributed in the neighborhoods of Cordoba, Casablanca, and Deira.

Three opportunities are also available in community centers with a total area of 5,014 sq. m, with 15-year contracts, located in the gardens of Seville, Al-Olaya, and Al Manhal. 

There are also two kiosks with a total area of 37 sq. m and a term of 10 years for sale.

There is one opportunity in self-selling distributed across 20 sites within the secretariat's sites with a five-year contract, located across several areas, according to the Municipality.

 As well as 12 investment opportunities to construct car parks covering 46,863 sq. m and with ten-year contracts. 

The investment opportunities also included 14 industrial opportunities on a total area of 295,310 sq. m, for a period of 20 years, located in the neighborhoods east of Ramah Road, Al-Khair neighborhood.

Riyadh Municipality is in charge of developing Riyadh and achieving sustainable development of the region with an integrated national perspective.

 


Stocks, sterling rally after UK’s tax climbdown injects some confidence

Stocks, sterling rally after UK’s tax climbdown injects some confidence
Updated 51 min 30 sec ago

Stocks, sterling rally after UK’s tax climbdown injects some confidence

Stocks, sterling rally after UK’s tax climbdown injects some confidence

LONDON: Global stocks climbed for a second day on Tuesday, after Britain’s decision to ditch part of a controversial tax-cut plan and slightly paler expectations for aggressive central bank action returned some confidence to investors, according to Reuters.

UK Finance Minister Kwasi Kwarteng on Monday announced the government would back down on reversing a tax break for top earners that formed part of a package aimed at boosting growth.

This measure only makes up a small part of the £45 billion ($51b billion) in unfunded tax cuts that sent the pound crashing to record lows and wreaked havoc in the gilts market.

But it was enough to soothe some of the recent angst in the market and, together with emergency bond buying from the Bank of England, sterling was set to make up most of the losses incurred since the mini budget was unveiled on Sept. 23.

Adding to the sense of relief among investors, who endured one of the most volatile quarters in recent history in the three months to September, was Australia’s central bank, which lifted interest rates by far less than expected.

A weaker read of US manufacturing activity helped temper expectations for more hefty rate rises by the Federal Reserve.

However, some analysts said this optimism may be misplaced.

“My firm view, however, is that this will not be the case. While, technically, having a dual mandate, the Fed have effectively become a single-issue central bank; that issue being bringing inflation back to the 2 percent target,” Michael Brown, chief strategist at CaxtonFX, said.

“Unless we see a few months of consecutive improvement in inflation data, it’s tough to envisage any sort of pivot, with another 75 bps hike remaining my base case for next month’s decision. It’s tough to be long risk with that on the radar.”

The MSCI All-World index was last up 0.8 percent on the day, while stocks in Europe enjoyed a decent bounce, with the Stoxx 600 trading almost 2 percent higher and London’s FTSE gaining over 1 percent.

The pound, meanwhile, gained 0.6 percent against the dollar to trade at $1.1390. Sterling has risen by more than 10 percent since the mini-budget.

The dollar slid against a basket of major currencies, as the euro and the pound made upward headway and Treasury yields slipped in light of a shift in investor expectations for the path of US interest rates.

US benchmark 10-year yields fell by nearly 20 basis points on Monday, having topped 4.0 percent just last week. They were last down 7 bps at 3.5795 percent.

“Noticeably, that move lower was entirely driven by a fall in real yields, with inflation breakevens moving higher on the day, which is again a sign that investors are pricing in a much less aggressive reaction from the Fed,” Deutsche Bank strategist Jim Reid said in a daily note.

In trade thinned by holidays in China and Hong Kong, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.7 percent, led by gains in Australia.

After September, when global bonds witnessed one of the biggest sell-offs in decades and any currency other than the dollar appeared to crumble, market watchers said a snap back, aided by better sentiment in the UK market, was not unusual, but would likely be short-lived.

“The about-face ... will not have a huge impact on the overall UK fiscal situation in our view,” said NatWest Markets’ head of economics and markets strategy John Briggs.

“(But) investors took it as a signal that the UK government could and is at least partially willing to walk back from its intentions that so disrupted markets over the past week.”

S&P 500 futures rose 1 percent, following a 2.6 percent bounce for the index overnight, suggesting a second day of gains may be in the offing on Wall Street later.

Other indicators of market stress are still flashing red. The CBOE Volatility Index remains elevated and above 30. Shares and bonds of Credit Suisse hit record lows on Monday as worry about the bank’s restructuring plans swept markets, although some of these losses reversed on Tuesday.

Japan’s yen hit 145 to the dollar on Monday — a level that prompted official intervention last week — and was last at 144.65, while the euro was up 0.6 percent at $0.9878, about three cents above last week’s 20-year trough.

“More volatility is almost certainly assured as FX markets re-focus on US recession risks, which continue to build,” said ANZ senior economist Miles Workman, with US jobs data on Friday the next major data point on the horizon.

Oil held overnight gains on news of possible production cuts, and Brent futures were last up 43 cents to $89.29 a barrel.
 


Oil Updates — Crude up; OPEC+ cancels technical meeting; Norway posts soldiers at oil plants

Oil Updates — Crude up; OPEC+ cancels technical meeting; Norway posts soldiers at oil plants
Updated 04 October 2022

Oil Updates — Crude up; OPEC+ cancels technical meeting; Norway posts soldiers at oil plants

Oil Updates — Crude up; OPEC+ cancels technical meeting; Norway posts soldiers at oil plants

RIYADH: Oil prices edged up on Tuesday as expectations that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, may agree to a large cut in crude output when it meets on Wednesday outweighed concerns about the global economy.

Brent crude futures rose 46 cents, or 0.5 percent, to $89.32 per barrel by 0629 GMT after gaining more than 4 percent in the previous session.

US crude futures rose 30 cents, or 0.4 percent, to $83.93 a barrel. The benchmark gained more than 5 percent in the previous session, its largest daily gain since May.

OPEC+ cancels technical meeting ahead of key meeting of ministers

OPEC+ canceled a meeting of its Joint Technical Committee set for Oct. 4 ahead of a key gathering of ministers from the producer group to set policy, three OPEC+ sources told Reuters on Monday.

The JTC advises the OPEC+ Joint Ministerial Monitoring Committee and the overall OPEC+ ministerial meeting on market fundamentals.

One of the sources said the decision to scrap the JTC meeting came from the JMMC, without elaborating.

Norway posts soldiers at oil, gas plants after Nord Stream leaks

Norway’s military said on Monday it had posted soldiers to help guard major onshore oil and gas processing plants, part of a wider effort to boost security amid suspicion that sabotage caused leaks in the Nord Stream gas pipelines last week.

Russia’s Nord Stream 1 and 2 pipelines burst on Sept. 26, draining gas into the Baltic Sea off the coast of Denmark and Sweden. Seismologists registered explosions in the area, and police in several countries have launched investigations.

Norway, Europe’s largest gas supplier and a major oil exporter, last week deployed its navy and air force to patrol offshore petroleum fields and announced it would receive assistance from Britain, Germany and France in doing so.

At the request of Norwegian police, the Norwegian Home Guard, a rapid mobilization force, on Monday began to deploy troops at plants responsible for processing and exporting oil and gas.

Although the Norwegian government has said it was not aware of any specific threats to oil and gas infrastructure, it still found it prudent to beef up security and sought to calm concerns among workers.

(With input from Reuters)


Saudi IT firm solutions by stc acquires Egypt’s Giza Systems

Saudi IT firm solutions by stc acquires Egypt’s Giza Systems
Updated 04 October 2022

Saudi IT firm solutions by stc acquires Egypt’s Giza Systems

Saudi IT firm solutions by stc acquires Egypt’s Giza Systems

RIYADH: Arabian Internet and Telecommunication Co., known as solutions by stc, has completed all necessary procedures to acquire a $158 million stake in Egypt's Giza Systems Co., a bourse filing revealed.

The Saudi-listed company had earlier entered a binding deal for the takeover of an 89.49 percent stake in Giza Systems in addition to 34 percent of its unit, Giza Arabia.

However, the acquisition percentage decreased to 88.19 percent, mainly due to executive management shares, it said.

The financial impact will appear in the company’s financial statements from the fourth quarter of 2022.

solutions by stc saw its share price increase 2.85 percent at the opening of bell of Tuesday to reach SR252 ($67), at 10:10 a.m. Saudi time.