UAE In-Focus – Entrepreneurship fund Ruwad increases direct financing pot by over 100%   

UAE In-Focus – Entrepreneurship fund Ruwad increases direct financing pot by over 100%   
The increase was approved during a meeting of the Foundation's Project Finance Committee. (WAM)
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Updated 08 March 2023

UAE In-Focus – Entrepreneurship fund Ruwad increases direct financing pot by over 100%   

UAE In-Focus – Entrepreneurship fund Ruwad increases direct financing pot by over 100%   

RIYADH: In order to enable entrepreneurs to take advantage of available opportunities and expand their projects, the Sharjah Foundation for Supporting Entrepreneurship has raised the value of funding to pilot projects from 2.5 million dirhams ($680,676) in 2022 to 6 million dirhams for the current year.  

This decision to raise the ceiling of direct financing by over 100 percent aligns with the objectives of the foundation, also known as Ruwad, in supporting the citizens of the emirate to enhance their contribution to the national economy.   

The increase was approved during a meeting of the foundation’s Project Finance Committee.   

Food and Agriculture Entrepreneurs Program launched 

Designed to help young participants hone their skills in managing agriculture and livestock projects, the UAE’s Ministry of Climate Change and the Environment has launched a Food and Agriculture Entrepreneurs Program.  

Set to be implemented from 2023 to 2025, the program forms part of the “Transformational Projects” initiative of the Council of Ministers. It offers an integrated system that enables its target audience to establish their own companies in the UAE agriculture sector.  

“The Ministry of Climate Change and Environment is working to empower and encourage youth to play an active role in advancing the agriculture and livestock sectors, and to achieve national food security,” Minister of Climate Change and the Environment Mariam bint Mohammed Almheiri said. 
She indicated that the ministry is working in collaboration with its strategic partners to empower young entrepreneurs in the fields of agriculture and food trade, develop their skills and train them to market their products.   

Facilities package for housing program borrowers rolled out 

To reduce the financial burdens of housing program borrowers, the Ministry of Energy and Infrastructure, in cooperation with the Central Bank of the UAE and in coordination with national banks, has started implementing a facilities package for them.  

According to Minister of Energy and Infrastructure Suhail bin Mohammed Faraj Faris Al Mazrouei, the housing facilities implemented under the Sheikh Zayed Housing Program require borrowers to pay a down payment for their housing unit and raise the credit limit of borrowers from 50 to 60 percent. 

This is the debt burden ratio or the percentage that beneficiaries or customers can afford to pay in the form of monthly installments out of their total salary or any income from a known specific source, while the credit limit for retirees has been raised from 30 to 50 percent, so they can benefit from housing loans.  

Al Mazrouei stressed that the monthly deductions to housing loans are very low and do not exceed 16.75 percent of the total monthly income.  

ADIB seeks to issue $8bn in debt instruments 

Abu Dhabi Islamic Bank is seeking to issue debt instruments worth $8 billion after the shareholders of the bank, listed on the Abu Dhabi Stock Exchange, approved authorizing the bank’s board of directors for these issues. 
Shareholders authorized the board of directors to issue sukuk with a value not exceeding $3 billion within a year, according to the bank’s disclosure on Tuesday.  

The company’s shareholders have also authorized the board of directors in the extraordinary assembly to issue sukuk or other similar instruments that are not convertible into shares in a total amount not exceeding $5 billion, at the time specified by the board of directors. 


GCC, Iraq electrical interconnection project enhances energy security: Saudi minister

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister
Updated 08 June 2023

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister
  • Project is ‘dream become reality,’ Prince Abdulaziz bin Salman says

RIYADH: The electrical interconnection project between Saudi Arabia and Iraq will support the Iraqi electrical grid, according to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman.

In an interview with Al-Arabiya, the prince said the connection was a dream that had become a reality and would achieve tangible economic benefits and enhance energy security.

Speaking on the sidelines of the OPEC+ meeting in Vienna, he said: “We have no complexes about speculation in the oil market,” and the decision to cut oil production was a “precautionary” one.

“Everyone agreed to cut production and we did not force anyone,” he said.

The prince said the oil market needed reassurances and measures to prevent fluctuations.

“We have no interest in the fluctuation of the oil market, whether in the short or long term,” he said.

The aim was to give the oil market clear data for stability and there were independent bodies that would work with the OPEC+ countries to evaluate their production in 2024, he said.

“The task of the independent bodies is to ensure the reliability of data for the oil market,” he said, adding that those parties would end the previous controversy over production data in OPEC+.

The minister said they had discussed with Russia the issue of its production and requested it clarify its data.

“Moscow’s decision not to publish production data leaves doubts about its volume,” he said.

“Independent parties contacted Russia about its production and got the numbers, and we have strengthened transparency with Russia over its oil production numbers.”


Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices
Updated 08 June 2023

Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices

RIYADH: Oil prices rose on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to US interest rate hikes offset worries over demand weakness and a global economic slowdown.

At a recent meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, Saudi Arabia said it will cut its crude output by 1 million barrels per day in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.

Brent crude rose 25 cents, or 0.3 percent, to $77.20 a barrel by 1328 GMT. US West Texas Interme- diate crude gained 20 cents, or 0.3 percent, to $72.73.
“With the OPEC+ meeting out of the way, focus is now shifting toward the next move the Fed will make when it meets next week,” said Tamas Varga of oil broker PVM.
There is growing consensus that the central bank will skip a rate hike, which could lift oil prices even before falling supply starts draining global oil inventories, Varga added.
OPEC+ cooperation praised
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised their collaboration during a phone call on Wednesday in a discussion of the work of OPEC+, the Kremlin said.
“The topic of ensuring stability on world energy markets was discussed in detail,” according to a Kremlin statement on the Telegram messaging app.
“Both sides praised cooperation within the framework of OPEC+, allowing for the adoption of timely and effective steps to ensure a balance between supply and demand for oil.”
The statement noted the impor- tance of agreements reached at the group’s meeting this week.
UAE ship insurance rules
Tougher requirements for some ship insurers covering the UAE ships are aimed at boosting environmental safety amid growing concerns over unregu- lated shipping, reported the state- run news agency WAM.
The UAE’s Energy and Infrastructure Ministry, in a June 2 circular, announced it would tighten insurance criteria for vessels registered under its flag for insurers that are not part of the leading ship insurers, known as the International Group of Protec- tion and Indemnity Clubs, which cover 90 percent of the world’s ocean-going fleet.
“By prioritizing stringent P&I standards, we ensure the safety, financial security, and environ- mental stewardship of our maritime activities, attracting reputable investors,” said Hessa Al Malek, adviser to the minister for maritime transport affairs.
The WAM report added that the move would reduce the risk of accidents and oil spills, leading to a safer and more secure marine environment.


Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31
Updated 08 June 2023

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

RIYADH: Saudi Arabia’s M3 money supply has surged 4.71 percent since December 2022, according to data released by the Saudi Central Bank, also known as SAMA.

The M3 money supply — the broadest measure of liquidity in the monetary system — reached SR2.61 billion ($697 billion) in the week ending June 1, up from SR2.5 billion on Dec. 31.

However, the money supply for the week ending June 1 dropped 0.29 percent compared to $2.62 billion in the week ending June 25.

The SAMA data also showed that the money supply has been stable at SR2.6 billion in the past six weeks.  

Central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.

Meanwhile, the M2 money supply recorded a 4.53 rise compared to Dec. 31 and a 0.57 percent weekly increase. 

The M2 poses a measurement of the nation’s money supply that estimates all the cash individuals have in hand or short-term bank deposits. It is usually used to indicate possible increases or decreases in inflation levels.

As for the M1 money supply during the week ending June 1, it jumped 1.45 percent from the end of December 2022 and 1.52 percent against the preceding week.

The M1 money supply comprises currency, demand and other liquid deposits.

It contains currency and assets that can be quickly converted to cash.


Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green
Updated 08 June 2023

Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green

After rising for four consecutive days, Saudi Arabia’s Tadawul All Share Index ended the week in green, as it gained 24.31 points, or 0.21 percent, to close at 11,397.14.

The total trading turnover of the benchmark index hit SR7.14 billion ($1.90 billion), as 113 stocks advanced, while 94 retracted. 

While parallel market Nomu gained 368.10 points to close at 21,849.68, MSCI Tadawul Index increased 0.16 percent to end the day at 1,509.41.

The top-performing stock on Thursday was Arabian Contracting Services Co., whose share price went up 7.5 percent to SR154.80. 

HIGHLIGHTS

The total trading turnover of the benchmark index hit SR7.14 billion ($1.90 billion), as 113 stocks advanced, while 94 retracted on Thursday.

The worst performer of the day was Leejam Sports Co., whose share price dipped by 4.2 percent.

Etihad Atheeb Telecommunication Co. and Astra Industrial Group were top performers, whose share prices soared by 5.63 percent and 5.18 percent, respectively.

The worst performer of the day was Leejam Sports Co., whose share price dipped by 4.2 percent. 

On the announcements front, Saudi Arabian Mining Co. said its shareholders approved the board’s recommendation to increase capital by 50 percent through a bonus share distribution.

According to a Tadawul statement, the mining giant will distribute one share for every two shares held, thus capitalizing SR12.31 billion from the statutory reserve and retained earnings. The company’s share price went down by 0.69 percent to SR43.85. 

Meanwhile, National Medical Care Co., also known as Care, announced that it had signed a share purchase agreement to acquire the entire share capital of Jiwar Medical Services Co. 

In a statement to Tadawul, Care noted that the acquisition deal was made after obtaining all approvals from competent authorities. The company’s share price dropped by 2.36 percent to SR116.


Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 
Updated 08 June 2023

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

RIYADH: A new business visa for investors has been announced by Saudi Arabia as part of the Kingdom’s drive to attract foreign funding into the economy. 

The “visiting investor” visa is being launched by Saudi Arabia’s Ministry of Investment, which worked closely with the Kingdom’s Foreign Affairs department to develop the new permit. 

Saudi Arabia has demonstrated a keen interest in streamlining the process for investors and international companies looking to expand their portfolios within the Kingdom, as part of the Vision 2030 initiative to diversify the economy away from oil. 

“The launch of the visiting investor business visa service comes within the framework of the success of cooperation and integration of efforts between the Ministries of Foreign Affairs and Investment,” Khalid Al-Falih, minister of investment, said in a tweet.  

FASTFACTS

The Kingdom’s industrial sector is among several witnessing a significant influx of foreign investments, which comprise 37 percent of the industry’s total funding.

The ‘visiting investor’ visa, a brainchild of the Kingdom’s Investment Ministry, was launched in collaboration with the Ministry of Foreign Affairs.

He further noted that the Ministry of Foreign Affairs backs the efforts of the Ministry of Investment in simplifying the process for investors interested in discovering business opportunities in the Kingdom.  

“I thank His Highness the Minister and the brothers in the Ministry of Foreign Affairs for supporting the efforts of the Ministry of Investment to facilitate the journey of the investor wishing to learn about the environment and investment opportunities in the Kingdom,” Al-Falih added.  

Foreign investments in Saudi Arabia rose by 2 percent in 2022 to SR2.4 trillion ($640 billion), up from SR2.36 trillion in 2021, according to the Saudi Central Bank, also known as SAMA.  

SAMA’s report indicated that foreign direct investments constituted 42 percent of the total inflow of international funds into the Kingdom, amounting to SR1.01 trillion.  

In March, Al-Falih indicated that multinational companies moving their headquarters to Saudi Arabia in 2023 to secure government contracts might be eligible for tax exemptions.  

The Kingdom’s industrial sector is among several witnessing a significant influx of foreign investments, which comprise 37 percent of the industry’s total funding.