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SAMA grants Saudi firm license for finance aggregation services 

SAMA grants Saudi firm license for finance aggregation services 
The licensing terms fall under SAMA’s Rules of Licensing Finance Support Activities that control and monitor related activities (File)
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Updated 20 March 2023
ARAB NEWS 

SAMA grants Saudi firm license for finance aggregation services 

SAMA grants Saudi firm license for finance aggregation services 
Updated 20 March 2023
ARAB NEWS 

RIYADH: The Saudi Central Bank has granted Creative Future for Digital Brokerage a license to carry out finance aggregation services in the Kingdom.

The Saudi-based company will provide services through its platform that connects financing companies with clients based on credit obligation and solvency to offer them customized finance solutions. 

This is part of an initiative by the central bank – also known as SAMA – to entice a new segment of investors and companies that can bring added value to the sector while maintaining full adherence to the regulations and guidelines set by the bank. 

“SAMA reiterates its commitment to support the financial sector and FinTech for enhancing operational efficiency to promote financial inclusion for the various segments of the society in the Kingdom,” said a statement on the bank’s website. 

The licensing terms fall under SAMA’s Rules of Licensing Finance Support Activities that control and monitor related activities. 

The granting of licenses comes after Creative Future for Digital Brokerage successfully passed testing its digital solutions in SAMA’s regulatory sandbox – an experimental environment dedicated to innovative financial products and services in Saudi Arabia. 

“Granting licenses to Finance Aggregation Service Providers is a step towards achieving the objectives of the FinTech Strategy in its pursuit to be among the leading countries in FinTech,” SAMA’s website stated.

The bank’s licensing of fintech companies contributes to achieving the objectives of the Financial Development Sector strategy aligned with Vision 2030. 

The strategy, published last year, aims to bring the total number of operating fintech companies to 150 by the end of 2023 and to 525 by 2030. 

Last month, Riyadh-based fintech firm Raqamyah received a license from SAMA, to offer its debt-based crowdlending solutions to small and medium enterprises.  

The bank has been keen to promote financial stability in the Kingdom and drive economic growth through the development of the fintech sector. 

The strategy also pointed out that fintech is set to contribute to 20 percent of total foreign investments in the Kingdom. 

“The Kingdom's aspirations to become a global leader in the financial technology sector must be supported by a strategy that focuses on managing the financial transformation of the financial sector to achieve a long-term economic impact,” the strategy stated. 

Topics: Saudi Central Bank (SAMA)

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Oil Updates — prices head for second straight weekly loss on demand fears

Oil Updates — prices head for second straight weekly loss on demand fears
Updated 59 min 15 sec ago
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Oil Updates — prices head for second straight weekly loss on demand fears

Oil Updates — prices head for second straight weekly loss on demand fears
Updated 59 min 15 sec ago
Reuters

SINGAPORE: Oil prices looked set to post their second straight weekly loss as they continued to fall on Friday over demand concerns and skepticism that the US and Iran could strike a nuclear deal, according to Reuters.

Brent crude futures dropped 35 cents, or 0.5 percent, to $75.61 a barrel by 7:04 a.m. Saudi time, while the US West Texas Intermediate crude futures eased 35 cents, or 0.5 percent, to $70.94.

“Oil prices are expected to stay in a range of about 3 dollars above and below $70 for WTI in the near term,” Satoru Yoshida, a commodity analyst with Rakuten Securities.

Both benchmarks slid by around $1 on Thursday, rebounding from their earlier losses of more than $3, after the US and Iran both denied a report by the Middle East Eye that they were close to a nuclear deal.

For the week, they were on track for losses of about 1 percent losses, after shedding about the same amount in the previous week.

Oil prices had risen early in the week following Saudi Arabia’s pledge over the weekend for deep output cuts, but they pared gains after rising US fuel stocks and weak Chinese export data.

Yoshida said factors such as fears over tighter supply and higher demand as the US enters driving season which could drive prices higher were being offset by worries over a slow pickup in China’s fuel demand.

“Crude prices didn’t get any favors from China as their economic recovery has disappointed,” OANDA analyst Edward Moya said.

While a Reuters poll of economists showed the US Federal Reserve could skip a rate hike at its June 13-14 meeting, the absence of similar signals from other major central banks was weighing on the oil demand outlook, Moya added. 

Topics: oil updates Brent crude

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

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

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
Updated 08 June 2023
Arab News

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.”

Topics: Saudi Arabia OPEC+ Oil market Prince Abdulaziz bin Salman energy

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Saudi Arabia’s voluntary production cuts support oil prices

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Updated 08 June 2023
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Updated 08 June 2023
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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.

Topics: OPEC+ Oil production

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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
Arab News

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
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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.

Topics: M3 money supply saudi central bank SAMA M2 money supply M1 money supply

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Closing bell: Saudi bourses end the week in green

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Updated 08 June 2023
Arab News

Closing bell: Saudi bourses end the week in green

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

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.

Topics: Closing Bell Tadawul All Share Index (TASI) nomu-parallel MSCI Tadawul 30 Index

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