Saudi hotel industry sees 11.4% spending surge, amid overall weekly POS decline: SAMA
Updated 20 November 2024
Miguel Hadchity
RIYADH: Spending in Saudi hotels saw a week-on-week increase of 11.4 percent between Nov. 10 and 16, reaching SR399.7 million ($106.4 million), according to the Kingdom’s central bank.
The weekly point-of-sale transactions bulletin from SAMA showed that restaurants and cafes recorded the second largest sectoral increase with a 4.3 percent rise to reach SR2.07 billion, which also equated to the biggest share of the overall value.
Spending on furniture came in third place, registering a 2 percent increase to SR304.8 million.
Overall, Saudi Arabia’s POS transactions registered a weekly decrease of 1.5 percent, with the education sector leading the decline.
SAMA recorded SR13.2 billion in transactions over the week, with the education industry posting the highest sectoral decrease at 47.9 percent to reach SR89.5 million.
The central bank’s figures showed that the electronics sector saw the second-largest dip, with a 10.9 percent slide to SR198 billion.
Spending on telecommunication recorded the third most significant decrease, at 7.4 percent, reaching SR117.1 million.
Expenditure on food and beverages saw a 0.6 percent negative change this week, reaching SR1.9 billion, claiming the second-biggest share of this week’s POS transaction value.
Spending on miscellaneous goods and services followed, accounting for the third largest POS share with a 4.1 percent dip, reaching SR1.5 billion.
Spending in the leading three categories accounted for 42 percent or SR5.5 billion of the week’s total value.
At 0.02 percent, the smallest increase occurred in spending on recreation and culture, boosting total payments to SR309.5 million. Expenditures on public utilities surged by 0.2 percent to SR52.9 million.
Geographically, Riyadh dominated POS transactions, representing 34.06 percent of the total, with expenses in the capital reaching SR4.5 billion — a 3.5 percent decrease from the previous week.
Jeddah followed with a 0.04 percent surge to SR1.8 billion, and Dammam came in third at SR641.4 million, down 4.6 percent.
Madinah experienced the most significant rise in spending, increasing 6.9 percent to SR567 million.
Tabuk recorded a decline of 7.5 percent, reaching SR235.9 million, and Abha dropped 3.4 percent to stand at SR149.4 million.
Trump orders tariff probe on all US critical mineral imports
Updated 22 sec ago
REUTERS
RIYADH: US President Donald Trump on Tuesday ordered a probe into potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to push back on industry leader China.
The order lays bare what manufacturers, industry consultants, academics and others have long warned Washington about: that the US is overly reliant on Beijing and others for processed versions of the minerals that power its entire economy.
China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey, for example, and has been curtailing exports in recent months.
Trump signed an order directing Commerce Secretary Howard Lutnick to begin a national security review under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25 percent global tariffs on steel and aluminum and one he used in February to launch a probe into potential copper tariffs.
US dependency on minerals imports “raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump said in the order.
Within 180 days, Lutnick is required to report his findings to the president, including whether to impose tariffs. Were Trump to then impose a tariff on a nation's critical minerals, the rate would supersede the reciprocal tariffs Trump imposed earlier this month, according to the White House.
The review will assess US vulnerabilities for the processing of all critical minerals — including cobalt, nickel and the 17 rare earths, as well as uranium — how foreign actors could be distorting markets, and what steps could be taken to boost domestic supply and recycling, according to the order.
The US currently extracts and processes scant amounts of lithium, has only one nickel mine but no nickel smelter, and has no cobalt mine or refinery. While it has several copper mines, the US has only two copper smelters and is reliant on other nations to process that key red metal.
The order takes a broad view of processing as all the steps after rock is taken out of the ground and where they are done. It also directs a review of US capabilities to produce so-called semi-finished goods, including battery cathodes and wind turbines.
The move is the latest in Trump’s effort to jumpstart US minerals production and processing. The president last month signed an order directing federal agencies to create a list of US mines that could be quickly approved and federal lands that could be used for minerals processing.
Still, it takes years to build a new mine and processing facility, a timeline that has sparked concern about where the US could procure minerals were tariffs broadly imposed.
“Ultimately the US gets certain minerals from China because there are not alternative supplies elsewhere,” said Gracelin Baskaran, director of the critical minerals security program at the Center for Strategic and International Studies.
‘FULL SCOPE’
Beijing earlier this month placed export restrictions on rare earths in response to Trump’s tariffs, a move that further exacerbated supply concerns amongst Trump officials.
Rare earths are a group of 17 elements used across the defense, electric vehicle, energy and electronics industries. The US has only one rare earths mine and most of its processed supply comes from China.
The restrictions from China were seen as the latest demonstration of the country’s ability to weaponize its dominance over the mining and processing of critical minerals after it put outright bans on the export of three other metals last year to the US and slapped export controls on others.
Chinese mining companies across the globe have been flooding markets with cheap supplies of many critical minerals in recent years, fueling calls from industry and investors for Washington to support US projects.
The White House also said Trump is focused on closing tariff loopholes. As with other products, the supply chain for critical minerals processing involves multiple countries.
“An effective policy should take into account the full scope of the supply chain to level the global playing field,” said Abigail Hunter, executive director of SAFE’s Center for Critical Minerals Strategy.
Oil Updates — crude slides as markets assess impact of US-China trade war
Updated 17 min 33 sec ago
REUTERS
SINGAPORE: Oil prices fell about 1 percent on Wednesday, as shifting US tariff policies fuelled uncertainty, prompting traders to weigh the potential impact of the US-China trade war on economic growth and energy demand, according to Reuters.
Brent crude futures fell 66 cents, or 1.0 percent, to $64.01 per barrel by 09:30 a.m. Saudi time, while US West Texas Intermediate crude dropped 69 cents, or 1.1 percent, to $60.64. Both benchmarks fell 0.3 percent on Tuesday.
Global oil demand is expected to grow at its slowest rate for five years in 2025 and US production gains will also taper off, due to US President Donald Trump’s tariffs on trading partners and their retaliatory moves, the International Energy Agency said on Tuesday.
“Investors continue to struggle in finding a catalyst to drive a more meaningful rebound, as global growth is widely expected to slow ahead with US tariffs, which puts oil demand in jeopardy,” said Yeap Jun Rong, market strategist at IG.
“The downward trend for oil prices remains intact and we may expect initial optimism around tariff rollbacks to fade, and the underlying macro headwinds on upcoming economic data could bring markets back to a more sobering reality,” Yeap said.
World oil demand this year is expected to rise by 730,000 barrels per day, the IEA said, sharply down from the 1.03 million bpd it expected last month. The reduction is larger than a cut in demand estimates made on Monday by the OPEC.
The tariff dispute between the US and China remains the most significant threat to the global economy and oil demand, said Imad Al-Khayyat, a research lead at London Stock Exchange Group.
“Each passing week without signs of easing in this standoff increases the likelihood of a global recession and lowers the price ceiling,” Al-Khayyat said.
Concerns over Trump’s escalating tariffs, combined with rising output from OPEC+, a group comprising OPEC and its producing allies such as Russia, have already dragged oil prices down roughly 13 percent so far this month.
The uncertainty surrounding trade tensions has led several banks, including UBS, BNP Paribas and HSBC, to cut their crude price forecasts.
Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on US imports in an intensifying trade war between the world's two biggest economies that markets fear will lead to a global recession.
Meanwhile, US crude oil stocks rose 2.4 million barrels in the week ended April 11, while gasoline inventories fell 3 million barrels and distillate stocks dropped 3.2 million barrels, market sources said, citing American Petroleum Institute figures on Tuesday.
Regional leaders rally for sustainable development goals at Beirut forum
Updated 15 April 2025
Miguel Hadchity
RIYADH: Regional leaders and development experts gathered in Beirut for the 2025 Arab Forum for Sustainable Development to assess progress on the UN’s global goals and explore strategies to speed up their implementation.
Held under the patronage of Lebanese President Joseph Aoun, the three-day event—titled “Restoring Hope, Raising Ambition”—is organized by the UN Economic and Social Commission for Western Asia, in collaboration with the League of Arab States and other UN agencies.
The forum focuses on advancing the Sustainable Development Goals across the Arab region, highlighting both achievements and persistent challenges.
As a vital platform ahead of two key global gatherings — the Second World Summit for Social Development in Doha this November and the Fourth International Conference on Financing for Development — the forum helps shape regional priorities around inclusive growth, social equity, and financial inclusion.
Financial inclusion
A central theme of the forum was the urgent need to advance financial inclusion in the Arab region, where approximately 197 million adults — representing 64 percent of the population— remain unbanked, the highest rate globally.
In a panel titled “Advancing Financial Inclusion in the Arab Region,” experts emphasized that true inclusion goes far beyond opening bank accounts—it’s about transforming lives and building economic resilience.
Nasser Al-Kahtani, executive director of the Arab Gulf Program for Development, underscored the need to view financial inclusion as a strategic investment, not just a policy goal.
Sherif Lokman, sub-governor of Egypt’s Central Bank, highlighted the need for national commitment, stating: “Every head of state should look to financial inclusion as something top important. A central bank cannot alone make financial inclusion happen.” He detailed Egypt’s efforts, including training 12,000 bank employees in sign language to better serve people with disabilities.
Maher Mahrouq, director general of Jordan’s Association of Banks, outlined Jordan’s target to raise financial inclusion to 65 percent by 2028 and reduce the gender gap to 12 percent.
Meanwhile, Fatma Triki from Tunisia’s Enda Inter-Arabe noted that her country had already achieved 75 percent financial inclusion in 2021.
The UN Special Rapporteur on Disability Rights, Heba Hagrass, called for at least 80 percent inclusion to ensure marginalized groups are not left behind. “One of the main obstacles to full financial inclusion are policies,” she said, urging reforms to dismantle barriers.
The forum focuses on advancing the Sustainable Development Goals across the Arab region. AN photo
Lebanon’s reform agenda and call for Arab unity
During a ministerial discussion on the road to the Fourth International Conference on Financing for Development, Lebanon’s Finance Minister Yassine Jaber urged the adoption of a unified Arab strategy to fund sustainable development.
“We need a combined effort between governments and international funders,” he said, as he outlined Lebanon’s reform program aimed at recovery from years of economic crisis.
Speaking to Arab News on the sidelines of the forum, Jaber elaborated on the country’s efforts to rebuild trust in its banking sector after a prolonged financial collapse. He identified the appointment of new leadership at the central bank as a crucial first step in restoring public confidence and promoting financial inclusion.
“During the coming weeks, we’ll be appointing a new vice governor and the new bank control commission, so that the whole team will be there to start preparing for a solution to this banking crisis,” Jaber told Arab News.
Lebanon’s Finance Minister Yassine Jaber urged the adoption of a unified Arab strategy to fund sustainable development. AN photo
He added: “Also, we just passed two laws. One amends the Bank Secrecy Law to allow the Bank Control Commission to have more access. The second law regulates the banking system to ensure banks are healthy, have good capital adequacy, and can operate in a trustworthy way.”
Jaber also noted the central bank’s plans to implement a gradual approach to returning deposits, prioritizing smaller account holders. “There’s no banking system in the world that can give back all the deposits to all the people at the same time. So we’ll start with the smaller depositors, then move to higher amounts.”
Reflecting on regional economic collaboration, Jaber expressed frustration over long-standing obstacles. Recalling his role in the 1990s as economy minister, he said: “I still remember how hard we worked … and always had obstacles that actually a lot of them still exist. With globalization falling apart, the Arab world has to create its own regional cooperation system.”
He also underscored the significance of Lebanon hosting the Arab Forum for Sustainable Development, despite the country's ongoing challenges. “The important thing is that this is happening here, in spite of everything, we still have this conference happening. We still have ESCWA here. Lebanon is stretching its hand out for cooperation.”
Jaber concluded by noting Lebanon’s plans to participate in the upcoming IMF-World Bank meetings in Washington, signaling its readiness to re-engage with the international financial community.
Challenges and commitments
The forum also featured remarks from Ahmed Aboul Gheit, secretary-general of the Arab League, who acknowledged that conflict and instability continue to obstruct sustainable development across the region. Yet, he struck an optimistic tone: “Despite these challenges, we see a strong and determined Arab will to transform obstacles into opportunities.”
Echoing this call for resilience, ESCWA Executive Secretary Rola Dashti stressed the need for tangible results over rhetoric. “Hope is not restored through words and promises—it is restored through action, accountability, and justice,” she said.
The Arab Forum for Sustainable Development comes at a critical juncture, as preparations ramp up for the Second World Social Summit in Doha, which will address longstanding gaps in social development. The UN has positioned the summit as an opportunity to “reaffirm our dedication to social progress” and ensure that no one is left behind.
ESCWA’s Annual SDG Review 2025, released during the forum, shed light on persistent inequalities in financial access across the Arab world. The report revealed that only 29 percent of Arab women have access to bank accounts—the lowest rate globally—while just 36 percent of adults use digital payments, compared to a global average of 67 percent.
The review also highlighted Lebanon’s acute banking trust crisis. Despite relatively moderate access to financial services, actual usage drops to just 10 percent, reflecting widespread public mistrust in the financial system.
As the forum’s second day wrapped up, participants emphasized the importance of digital finance, regulatory reform, and stronger regional cooperation to close these gaps. With Lebanon working to restore its financial footing and Arab nations seeking unified solutions, the AFSD has laid the groundwork for meaningful dialogue ahead of November’s global summit.
GCC banks face limited tariff exposure but vulnerable to oil price declines: Fitch
Updated 15 April 2025
Reem Walid
RIYADH: Gulf banks face minimal direct impact from new US tariffs, but remain exposed to broader risks stemming from weaker oil prices and slowing global growth, Fitch Ratings said in a report.
The agency noted that most Gulf Cooperation Council exports to the US are hydrocarbons — which are exempt from the latest tariffs. Non-oil exports, such as aluminum and steel, which are subject to 10 percent or 25 percent duties, account for only a small share of the trade basket, limiting direct exposure for regional economies and their banking sectors.
However, indirect effects could be more pronounced. “Lower oil prices and weaker global demand are the main risks for GCC bank operating environments,” Fitch said. “Government spending strongly affects bank operating conditions in most GCC countries.”
The comments come as Fitch cut its global gross domestic product growth forecast to 2.3 percent in 2025 and 2.2 percent in 2026, citing increased downside risks. That could drag on oil prices — the primary revenue source for most GCC governments — and constrain public investment, a key driver of credit growth and liquidity in the region’s banking system.
Fitch’s Middle East Banks Outlook 2025, released last December, had forecast lending growth broadly in line with 2024 levels. The latest report suggests that view may be revised down if crude continues to weaken.
OPEC+ had over 6 million barrels per day in spare capacity in January and plans to start unwinding production cuts from April, Fitch said, adding that oil prices will largely depend on the strength of the global economy and supply management by the producer group.
The report also warned that a prolonged drop in fiscal revenues could undermine non-oil GDP growth across the GCC. Fitch had initially projected that non-oil sectors would expand by more than 3.5 percent in both 2025 and 2026, but noted that reduced government spending may weigh on momentum.
Weaker corporate performance, tariff-linked cost pressures, and inflation could also deteriorate credit quality, while uncertainty around interest rates may further strain debt servicing and dampen loan demand, Fitch said.
Still, most GCC banks remain well-capitalized. “Many banks have strengthened their capital buffers in recent years, supported by solid earnings from high oil prices and interest rates, as well as strong liquidity and economic activity,” the agency said.
Among sovereigns, Bahrain’s bank operating environment score — rated ‘b+’ with a negative outlook — is the most vulnerable to a downgrade, Fitch said, citing the country’s weak public finances, high debt, and the region’s highest breakeven oil price. The score is constrained by the sovereign rating of ‘B+/Negative’.
Elsewhere in the region, bank operating environment scores are stable, with Oman the only market carrying a positive outlook. Fitch rates Saudi Arabia and the UAE at ‘bbb+’ with stable outlooks, followed by Qatar and Kuwait at ‘bbb’, and Oman at ‘bb+’.
“These sovereigns benefit from stronger reserves and more flexible fiscal positions,” Fitch said. “That enhances their ability to sustain spending and absorb external shocks.”
Closing Bell: Saudi markets edge higher as TASI closes at 11,617
Updated 15 April 2025
Nour El-Shaeri
RIYADH: Saudi Arabia’s stock market ended Tuesday’s session on a positive note, with the Tadawul All Share Index posting modest gains amid mixed performance across sectors.
The index rose by 19.46 points, or 0.17 percent, to close at 11,616.81. Trading turnover on the main market reached SR6.3 billion ($1.69 billion), with 105 stocks advancing and 136 declining, reflecting cautious optimism among investors.
The parallel market, Nomu, also saw upward movement, gaining 23.68 points, or 0.08 percent, to settle at 29,141.30. Meanwhile, the MSCI Tadawul Index recorded an increase of 4.84 points, or 0.33 percent, ending the day at 1,473.70.
Al Mawarid Manpower Co. led the gains on the main market, with its share price surging 9.97 percent to close at SR150. Strong performances were also recorded by Saudi Printing and Packaging Co., which rose 9.92 percent to SR11.08, and Saudi Research and Media Group, whose shares climbed 6.48 percent to SR184. Rasan Information Technology Co. advanced 6.33 percent, while Middle East Specialized Cables Co. closed 5.14 percent higher.
On the downside, Saudi Cable Co. posted the steepest loss of the session, with its share price falling 3.58 percent to SR124. Al Sagr Cooperative Insurance Co. declined 3.15 percent to SR14.78, followed by Sumou Real Estate Co., Raoom Trading Co., and Arabian Pipes Co., which recorded losses of 2.79 percent, 2.77 percent, and 2.70 percent, respectively.
On the announcements front, Multi Business Group Co., listed on the Nomu market, announced that it has secured a significant new project from the Saudi Fund for Development.
The contract, which exceeds 10 percent of the company’s annual revenue, involves comprehensive renovation work on the Fund’s main building, including architectural, fit-out, electrical, and mechanical upgrades.
The company confirmed that no related parties were involved in the deal. Following the announcement, Multi Business Group Co. shares rose 6.92 percent to close at SR19.78.
In a separate disclosure, the Saudi Exchange stated that the fluctuation limits for Bank Albilad on April 15 would be based on a share price of SR29.25.
This adjustment follows the bank’s extraordinary general meeting on April 14, during which shareholders approved a capital increase through the issuance of bonus shares. Consequently, all outstanding orders for Bank Albilad shares will be canceled, and the Securities Depository Center will deposit the additional shares into investor portfolios by April 17. Bank Albilad’s share price edged up 0.51 percent on Tuesday, closing at SR29.40.
