Bank credit down first time in years
RIYADH: Credit offered by Saudi Arabia’s banks fell to its lowest level in at least 13 months in December and closed 2009 with a first annual drop since at least 2001, central bank data showed on Tuesday. Bank credit in the Kingdom stood at SR736.9 billion at the end of December, down from SR752.8 billion in the previous month and SR744.8 billion at the end of 2008, data from the Saudi Arabian Monetary Agency’s (SAMA) website showed. Banks claims on the private sector, a measure of banks’ confidence in private sector growth prospects, stood at SR734.2 billion by the end of December, showing its first month-on-month drop in four months, the data showed.
Al-Rajhi Q4 loan provisions up
RIYADH: Al-Rajhi Bank, the region’s biggest Islamic lender by market value, booked SR513.9 million ($137 million) in provisions for loan losses in the fourth quarter, official data showed. The fourth-quarter provisions brought to SR1.82 billion the total amount of cash the bank has set aside to cover loan losses in 2009, up 43 percent from 2008, according to the data on the bourse website. The lender has posted a 3.7 percent rise in its net profit for 2009.
Saudi Cable lands SR100m contract
JEDDAH: Saudi Cable Co. has won a SR100 million ($26.6 million) contract to supply and install high voltage cables for a project in North Jeddah, the firm said in a bourse statement on Tuesday. The contract, offered by Saudi Electricity Company, is to provide 380 KV cables and is expected to boost Saudi Cable’s profitability in the second quarter of this year. “This will add to the company’s profitability in the second quarter of the current year to the benefit of the shareholders,” the firm said.
ACE products get SAMA approvals
MANAMA: ACE Arabia Cooperative Insurance Co. has announced that it has now received product approvals from the Saudi Arabian Monetary Agency (SAMA) for the majority of the product lines that it wishes to provide. This follows the January announcement that ACE had received regulatory consent to conduct insurance operations in the Kingdom. “We are extremely pleased to be able to commence operations and look forward to a successful performance in 2010 and beyond,” said ACE Chairman Abdul Karim El-Khereiji.
Emirates sees no funding issues
DUBAI: Dubai’s government-owned Emirates airline, the largest customer for the Airbus A380 superjumbo, said on Tuesday funding its aircraft purchases was not a problem and it would post solid results for 2009. The Arab world’s largest airline, which has $55 billion of orders with Airbus and Boeing, said on Monday it expected to take delivery of 11 aircraft in 2010 as it presses ahead with expansion into Europe. “Financing aircraft is not a problem,” Gary Chapman, president Emirates Group Services and Dnata, told reporters in Dubai.
— Compiled by Arab News
