Housing finance

THE decision to change the Real Estate Development Fund (REDF) into a financing institution came on time following laborious efforts made by the government to solve the housing problem in the past years.

However, demographic, economic and funding variables represented key challenges toward finding a (final) solution.

Writers and experts have touched on these problems in details including, to mention some, demographic changes, poor funding regulations and absence of incentives to develop white (vacant) lands which occupy vast areas in cities.

Therefore, with the continuity of demographic challenges, it has become imperative for the government to streamline the housing market through the two elements: Business and finance. The drive to impose fees on vacant lands and allowing citizens to own houses are likely to push prices of house rentals down gradually step.

The existence of a financing entity and a developed database for property funding market will increase the number of borrowers from the (proposed) financing entity and other funding agencies that will, eventually, activate the funding market and provide options for customers.

The role of the (proposed) financing entity on creating funding mechanisms and regulations is important in the current stage in terms of providing facilities and protection to borrowers (debtors).

The financing entity is, thus, invited to set out basic rules for borrowing costs and lending rates applicable in most countries of the world.

— Adil Al-Jahli, Al-Eqtisadiah

Saleh stands exposed

THE deposed Yemeni President Ali Abdullah Saleh was known for his trickery and violation of commitments in his relations with Arab and Islamic countries or with Yemeni people.

Saleh, further, brought more horrors and destruction to his people and ignited seditions and unrest between tribes and, eventually, sided with Houthi militia to orchestrate a coup against the legitimate authority in Yemen.

The new trickery emerged with the announcement of the People’s Congress Party led by Saleh about its preparedness to resume political dialogue and accept of the (UN) Resolution 2216, including withdrawal from cities and surrender of weapons, which he had rejected earlier.

Saleh, ironically, announces his acceptance of the UN resolution while his forces and Houthi militia are mounting strikes against unarmed civilians in Taiz and other areas claiming more lives and causing injuries.

Saleh’s message to the UN Secretary-General Ban Ki-moon on his readiness to implement the seven-point overture, notably the UN Resolution 2216, is a new political ploy of his many known trickeries.

The commitment made by Saleh regarding the implementation of the UN resolutions came as a natural outcome of defeats sustained by his forces and Houthi militia at the hands of the legitimate forces, which are gaining more successes and victories on the ground.

It has become apparent that the coalition forces and Yemeni legitimate forces will not be cheated by such trickeries but, rather, they are working ahead with their planned objectives to purify Yemeni cities from Houthi militia and Saleh forces and restore the legitimate rights of the Yemeni people.

— Editorial, Al-Yaum

More independence for universities

A few years ago, former Rector of Yamamah University Dr. Ahmed Al-Eisa had said that Saudi universities in the beginning had played a key role in the development of culture and thought.

At that time, the universities represented the major institutions to create awareness and provide knowledge in light of limited communication with foreign world from the media, tourism and cultural point of view.

However, this distinctive role of the Saudi universities has diminished with the establishment of the Ministry of Higher Education, which diluted all distinctive potentials of universities and ended the spirit of competition among them. The universities, accordingly, are not only run by the same administrative style but are also subjected to the same academic orientation without any creativity, a matter that puts our universities at a lower ranking among global and Arab universities.

If the Ministry of Higher Education prior to its cancellation represented an obstacle to the progress and excellence of universities, the expansion of the Ministry of Education after merger of the two ministries has doubled the mission and tasks of the (new) ministry and its minister.

As a member of the Shoura Council in its second term (1998-2002), I called for the cancellation of the Ministry of Higher Education and today there is a pressing need to separate universities from the Ministry of Education. The universities better be put under the supervision of the recently-formed temporary committee as ordered by Custodian of the Two Holy Mosques King Salman and later be developed into a permanent Council for Higher Education entrusted to encourage the spirit of excellence among universities and give them more powers and independence.

— Abdulaziz Husain Al-Suwaigh, Al-Madinah

Public-private partnership to boost economy

SINCE June 2014, oil prices have fallen by more than half to hit $42 per barrel in August 2015 compared to $115 earlier.

Meanwhile, the International Monetary Fund (IMF) has predicted that the Saudi budget will register a deficit nearing 19.5 percent of its gross domestic product (GDP) in the current year.

Earlier, growth of the private sector was closely linked to the oil markets as oil represented nearly 85 percent of the government revenues.

However, in the light of oil price fall, the government was forced to cut spending to focus on basic development projects such as health, education and infrastructure.

Depending on oil alone will not develop economy due to fluctuation of oil prices and depending on reserves may give a temporary solution and, therefore, the government is strongly invited to diversify non-oil economy.

Continuity of spending on basic development projects will allow the private sector to join the funding of those projects through partnership between public and private sectors with government drive to privatize more government companies through initial public offerings (IPOs).

The privatization process in the Kingdom has many positive aspects on the national economy, part of which will focus on the re-structuring of government sector in accordance with local requirements.

One of the striking examples in this context is Madinah International Airport, which is being run by the private sector, a matter that calls for the expansion of airport privatization programs to accommodate 100 million passengers in a year.

On the other hand, nonoil economy in the Kingdom is expected to maintain its growth at 5 percent in the next two years (2015-2016) resting on government spending, which has in recent years invested in a variety of sectors of strategic importance such as transport, housing, energy and financial services.

The Saudi government is poised to inject investments into key infrastructure projects worth $1.1 trillion including Riyadh and Makkah metro projects at the cost of $23bn and $7bn, respectively, in addition to Shaqaiq Power Plant at the cost of $3.3bn.

Likewise, construction and building sector will keep a growth rate of 6.6 percent in the current year while the refinery sector will have a growth rate of 10 percent.

Revenues of nonoil sector will jump from SR131bn in 2014 to SR134bn in 2015 and, in general, the value of private sector increased from SR300bn to SR1 trillion in a ten-year period (2003-2013).

The nonoil private sector will remain the major driver for the growth of GDP. Moreover, the financial indicators of the recently-published big 100 Saudi companies have reflected strength and stability of Saudi economy where their revenues exceeded SR727bn with their assets reaching SR3.66 trillion.

— Dr. Abdulhafiz Abdulrahim Mahjoub, Al-Jazira

Security men, heroes of the season

All those who have contributed to the success of the Haj operation are heroes including security men, health workers, civil defense staff, media men and volunteers.

This could be possible because every person and every government agency worked in the spirit of Islam under the able leadership of Custodian of the Two Holy Mosques King Salman.

The security men, in particular, had a key role, as they managed to ward off all attempts to defame and degrade the role of the Saudi government in serving pilgrims.

By carrying pilgrims and helping them throw stones at Jamarat, pushing wheelchairs of handicapped pilgrims or spraying water on Hajis to cool them were all captured and relayed by various TV channels. This has sent a strong message to those who leveled false charges against the Kingdom.

While some elements manufactured a fake story aimed at downgrading the capability of the Kingdom to serve pilgrims, we saw several video footage ready to show a security man in his humanitarian best carrying for instance a child to health clinic or offering water to thirsty pilgrims and so on.

The security men have shown the highest level of patience and best cooperation even with the pilgrims of those countries that leave no stone unturned to insult our country. These security men therefore deserved our sincerest thanks and appreciation.

If photos (and video footages) came as a handy tool in the face such adversities, we have to plan to take optimum use of them. In this context, I propose the holding of photo exhibitions to document the circumstances in which various Saudi agencies put up their best to serve the Hajis to show the people worldwide that the whole Haj affair is in honest hands, while at the same time counter those who want to malign Islam. Besides, give a message to the world that our security men’s behavior is derived from the teachings of Islam.

— Dr. Talal bin Sulaiman Al-Harbi, Al-Riyadh