Latest news with #Al-Eqtisadiah
Saudi Gazette
05-05-2025
- Business
- Saudi Gazette
Saudi Arabia's budget posts quarterly deficit of SR58.7 billion
Saudi Gazette report RIYADH — Saudi Arabia posted actual revenues of SR263.62 billion and expenditures of SR322.3 billion in the first quarter of 2025, recording a deficit of SR58.7 billion, the Ministry of Finance has announced on Monday. The total revenues during the three-month period recorded a fall of 10 percent year-on-year. According to the quarterly budget performance report, revenues from oil stood at SR149.8 billion while non-oil revenues reached SR113.81 billion. This shows that the Kingdom continues its efforts to diversify its sources of income and enhance long-term financial sustainability. The budget reflects an increase in public spending as part of the Kingdom's plans to stimulate economic growth and continue implementing major projects under the Saudi Vision 2030. The ministry report showed that budget deficit in the first quarter, amounting to SR58.7 billion, is the largest since the fourth quarter of 2021. It is the tenth consecutive quarterly deficit, according to an analysis of Al-Eqtisadiah newspaper. This deficit comes as oil production continues to be cut by the OPEC+ alliance, coupled with lower average crude oil prices compared to the same period in 2024. The deficit came as oil production declined by one percent to 8.95 million barrels per day, according to OPEC. Brent oil prices also declined by 15 percent to $75 per barrel compared to the same period in 2024. This deficit resulted from a 10 percent decline in state revenues reaching SR263.6 billion, compared to a five percent increase in expenditures that stood at SR322.3 billion. The budget deficit for the first quarter of this year is 3.5 times higher than the deficit amounting to SR12 billion recorded in the same period last year. The decline in total revenues coincided with an 18 percent decline in oil revenues to SR150 billion, while non-oil revenues rose two percent reaching SR114 billion, according to the analysis. Despite the decline, government spending remains at high levels due to massive development projects and regional and sectoral strategies that drive sustainable economic growth. This is in addition to the social support system to protect citizens from the impact of local and global repercussions, support for imported essential goods and services, continued additional financial support in the Citizens Account program, and an increase in the basic minimum for calculating pensions for social security beneficiaries, apart from improving the level of public services provided to citizens and expatriates. Through its fiscal policies, Saudi Arabia seeks to achieve a balance between development spending and deficit management, while continuing to support non-oil sectors and stimulate investment, amid a volatile and challenging global economic environment. Taxes on income, gains, and capital gains amounted to SR6.7 billion, taxes on goods and services amounted to SR71.6 billion, taxes on international trade and transactions accounted for SR4.5 billion, in addition to other taxes amounting to SR25.4 billion. The Saudi Cabinet approved the 2025 budget, estimating expenditures at SR1.29 trillion and revenues at SR1.18 trillion, with a deficit of SR101 billion, representing 2.3 percent of the country's GDP. The Saudi budget recorded a deficit of SR115.6 billion in 2024, with revenues reaching SR1.26 trillion and expenditures amounting to SR1.37 trillion.
Arab News
22-04-2025
- Business
- Arab News
Over 40 Indian firms have established regional HQs in Saudi Arabia, official reveals
RIYADH: More than 40 Indian companies have established headquarters in Saudi Arabia, with additional facilities in the defense sector expected in the near future, according to a top official. Abdulaziz Al-Qahtani, chairman of the Saudi-Indian Business Council, made the comments as Indian Prime Minister Narendra Modi arrived in Jeddah on Tuesday for a two-day visit. He is expected to meet with Crown Prince and Prime Minister Mohammed bin Salman during the trip. Al-Qahtani said the visit aligns with Saudi Arabia's broader push to localize defense spending, boost technology transfer, and expand domestic investment across sectors that contribute to national gross domestic product. In an interview with Al-Eqtisadiah, Al-Qahtani said Saudi investments in India are valued at around $10 billion, including stakes by the Public Investment Fund in major companies such as Reliance Jio Platforms, Reliance Retail, OYO Hotels, and the Health Technology Co. 'Al-Qahtani pointed out that the Saudi-Indian Business Council is working to encourage Indian investment in Saudi Arabia, identify investment opportunities in India, and transfer and localize technology in various sectors, such as space and defense,' Al-Eqtisadiah reported. 'It also aims to exchange expertise in education and training, benefit from mutual expertise in tourism and entertainment, and cooperate in the healthcare sector, pharmaceutical and medical supplies industries, and enhance integration in logistics services,' the report added. Al-Qahtani added that India has invited Saudi Arabia to invest in its growing defense sector, which has opened up to private investors in recent years. Indian firms that have already established regional bases in Saudi Arabia include those working in automobile and bus manufacturing. The move by the more than 40 Indian firms comes amid a wave of multinational companies establishing regional bases in the Kingdom. Almost 600 international companies have set up bases in Saudi Arabia since 2021, including Northern Trust, IHG Hotels & Resorts, and Deloitte, the Saudi Press Agency reported in March. The growth was fueled by the government-backed Riyadh regional headquarters program, which offers incentives such as a 30-year corporate income tax exemption and withholding tax relief, alongside regulatory support for multinationals operating in the Kingdom. India remains a key energy partner for the Kingdom, as it imported 14 percent of Saudi Arabia's crude oil production and 18 percent of its liquefied natural gas exports in the past year. Bilateral trade has also expanded in sectors such as chemicals, construction, and contracting, as well as healthcare training, and information technology. Total trade between the two countries reached around $42 billion in the financial year 2023-24. Of this, Indian exports to Saudi Arabia accounted for approximately $11 billion, consisting of engineering products, rice, and petroleum derivatives, as well as chemicals, food and medical supplies, and textiles. Saudi exports to India totaled SR31 billion ($8.2 billion), including crude oil, liquefied natural gas, fertilizers, chemicals, and plastics.
Arab News
19-04-2025
- Business
- Arab News
Arab News at 50: A consistent voice in a constantly changing region
RIYADH: Fifty years ago today, brothers Hisham and Mohammed Ali Hafiz, two legendary figures in Saudi Arabia's media landscape, launched Arab News, Saudi Arabia's first English-language daily newspaper, from a small garage in my hometown of Jeddah. Little did anyone know at the time that this experiment in the unknown would later give birth to not only one of the region's most successful and influential publications, but also to a whole stable of them, including sister publications Asharq Al-Awsat, Al-Eqtisadiah, Sayidati and Al-Majallah. Eventually this venture became what is known today as the Saudi Research and Media Group, which is listed on the Saudi stock exchange — and which will hopefully continue to grow and expand. The Hafiz brothers had printer's ink in their DNA. In 1937, the brothers' father, Ali Abdul Qader Hafiz, and their uncle, Osman, had launched a weekly newspaper, Al-Madina, on which the two boys worked during their school holidays. As such, there is no wonder the company grew so well under their leadership. But there was another 'X factor' behind the success of Arab News. Little do people know that there was another visionary behind its launch, although unfortunately he did not live long enough to see our newspaper come to life. I am of course referring to the late King Faisal, who was assassinated shortly before the first edition of Arab News went to print on April 20, 1975. The late king's son, Prince Turki Al-Faisal, former Saudi intelligence chief and the Kingdom's ambassador to both the UK and the US, recalled that the fledging newspaper came into the world with royal blessing. 'After the Ramadan war ended in 1974, the late Sheikh Kamal Adham and I were then advisers to the late King Faisal on issues of coordination with Egypt and other countries. One of our friends and colleagues, the late Hisham Hafiz, came up with the idea of setting up an English-language publication in the Kingdom to tell the English-speaking world what is happening in Saudi Arabia. 'It was decided that the newspaper would be called Arab News, and we got permission from the late King Faisal to establish the newspaper and also to choose the color green for the front and back pages, to identify it closely with Saudi Arabia.' Unfortunately Hisham, who died in 2006, would not live to celebrate his first-born publication reaching its 50th birthday, but without doubt he would not have been surprised to see it achieve this milestone. His brother, Mohammed, was too ill to give a new interview for this occasion. However, as Hisham's obituary published in Arab News recorded, by the early 1970s Hisham and his brother 'could see that Saudi Arabia was on the threshold of a great economic boom and that millions of expatriates would be pouring in to carry out its ambitious nation-building programs' and 'thus, the idea for an English language daily newspaper of a high standard to meet the expected demand was discussed, developed and became a reality in 1975.' Several exceptional chairmen such as the late Prince Ahmed bin Salman, Prince Faisal bin Salman and Prince Turki bin Salman also contributed significantly to the growth of the group through the decades, and Arab News was lucky to benefit from their experience and support. Today, we are marking the 50th anniversary of the birth of that idea by looking back at 50 of the key moments that have changed the region over the past half-century, and how Arab News — 'The Voice of A Changing Region' — reported them. This coverage can be found in a special print edition and online at From the very outset there has been no shortage of momentous events in the Arab world. In fact, the very first edition of Arab News was published exactly one week after the start of Lebanon's 15-year civil war and coincided with an Arab meeting in Riyadh. Since then we have been there for our readers, bearing witness to the great events of our time, from the destabilizing upheavals of the 1970s and 1980s and the Gulf wars, to the great social and economic reforms transforming Saudi Arabia today and the ongoing crisis in Gaza and the Occupied Territories. Over the past 50 years, much has changed — in publishing, as in the world. Born in a Jeddah garage, Arab News has grown into a global platform, chronicling and shaping the story of the Middle East for 50 years. Faisal J. Abbas In 1975 a newspaper was, quite literally, news that one read on paper. In today's faster moving world most readers access Arab News through their smartphones — an evolution in publishing to which Arab News has adapted by embracing the technology and the new skills necessary to make the most of it. Throughout its journey over the past 50 years the paper has evolved, in color, size, format and on platforms such as X, Facebook and Instagram. Today Arab News is a multimedia title. We have a radio show and a series of popular podcasts, including the Frankly Speaking video show, whose guests have ranged from international senior diplomats and analysts to key political figures, including Ukrainian President Volodymyr Zelensky and a large number of Saudi and Arab ministers and decision makers. Working in collaboration with international pollsters YouGov, our Research & Studies Unit has pioneered in-depth political polling in the region; the results of one of its most recent projects, assessing the hopes and fears of Arab Americans in the run-up to the 2024 US presidential election, were widely reported around the world. On our op-ed pages, the opinions to which we give voice remain inclusive and varied, but on some topics our editorial line remains steadfast, such as our unwavering support for Palestinian rights and a two-state solution. We are proud of our contributions to religious tolerance. In 2022 we became the first Saudi newspaper to publish a special Christmas edition, and through our encyclopedic Preachers of Hate series we have consistently exposed those of any faith who peddle divisive, extremist ideology. We have striven to ensure that when it comes to equality and diversity our own house is in order and continue to work toward achieving a gender-balanced newsroom, an initiative led by our deputy editor-in-chief Noor Nugali, and a remarkable team of female colleagues who report, photograph, edit or manage many of the paper's projects. In 2016 I was privileged to become the 10th person in the history of Arab News to be appointed to the coveted role of editor-in-chief of the paper. The moment was particularly special for me, as my appointment coincided with the launch of Vision 2030, Crown Prince Mohammad bin Salman's blueprint for the future of Saudi Arabia. In April 2018 we changed our masthead motto from 'The Middle East's Leading English Language Daily' to 'The Voice of a Changing Region,' the better reflect the great changes and reforms being initiated under the banner of Vision 2030 — and we look forward to celebrating the 10th anniversary of the Crown Prince's initiative on April 25 next year. Our success and continuing relevance in the crowded media space owes much to our relaunch and digital transformation in 2018, made possible by the bottomless support of our former chairman, Prince Badr bin Abdullah bin Farhan, who in June 2018 became Saudi Arabia's first Minister of Culture, and the guidance of experienced board members such as veteran newspaperman Abdulrahman Al-Rashed. Arab News first went online in 2001 and, while we continue to produce a daily print edition, since then we have launched international editions in Pakistan (2018), Japan (2019) and France (2020). The success of the paper's transformation in the digital era is reflected in its having won more than 150 international design awards since 2018. As we turn 50, and all eyes are on the impact of artificial intelligence and how technology might yet again transform our industry, we vow to remain at the forefront of innovation. But whatever technological changes are coming down the line, we will continue to adhere to the same principles of editorial integrity that guided the two young men who produced their first 16-page newspaper in a small garage in Jeddah on April 20, 1975 — and look forward to the next half-century in the story of Arab News. Lastly, my sincere thanks go to the amazing Arab News team for their pride, passion and willingness to take the plunge every single day, and to you, our loyal readers, followers and listeners.
Arab News
18-04-2025
- Business
- Arab News
UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom
RIYADH: The strong investment growth in Saudi Arabia's economy has led 50 British companies to set up regional headquarters, joining over 1,300 UK firms already operating in the Kingdom, said a senior UK trade official. The UK is positioning itself as a long-term partner in the Kingdom's economic transformation, with bilateral trade already surpassing £17 billion ($22.55 billion) and expected to grow further in line with Vision 2030. 'The UK and the Kingdom of Saudi Arabia have enjoyed a warm and deep trading relationship for a long time,' said Peter Ashby, deputy UK trade commissioner for the Middle East, in an interview with Al-Eqtisadiah. 'So, we are starting from strong foundation and a place of friendship and mutual respect,' added Ashby, who is also the director of trade and investment at the British Embassy in Riyadh. Both governments, he said, 'are working extremely hard to strengthen our trading relationships and to create quality jobs in new sectors under Vision 2030 and the UK's upcoming Industrial Strategy.' Ashby said the UK-Saudi Strategic Partnership Council — led by Saudi Commerce Mnister Majid bin Abdullah Al-Kassabi and UK Secretary of State for Business and Trade Jonathan Reynolds — has been central to advancing bilateral initiatives across economic and social pillars. 'Great Futures' initiative A flagship effort under that framework is the 'Great Futures' campaign, which Ashby described as a 'joint initiative to promote trade, tourism, innovation and cultural partnerships.' It has supported deals in priority sectors such as critical minerals and AI-enabled technology. 'The campaign continues, with GREAT FUTURES supporting business engagement in the UK and Saudi Arabia, including bespoke events such as the UK-Saudi Skills Forum at the upcoming HCI (Human Capability Initiative) and EDGEx Education Global Exhibition,' Ashby said. The campaign's impact was tangible from the outset. 'The event delivered more than 50 agreements across priority sectors and was the catalyst for the partnerships worth over £7.7bn and delivering 4000 jobs in both Kingdoms, announced during the UK Prime Minister's visit in December last year,' he said. One of those deals involved hydrogen-focused UK firm HYCAP, which partnered with Saudi companies 'to invest over £750 million in hydrogen mobility infrastructure solutions between both our countries, securing over 1000 jobs across Northern Ireland and the rest of the UK.' Vision 2030 alignment Ashby pointed out that the UK is 'strategically aligning its expertise with Saudi Arabia's Vision 2030 priorities, particularly focusing on supporting the Kingdom's transition into non-oil sectors.' The UK is concentrating on industries where it already leads globally — 'including energy, financial services, clean technology, advanced manufacturing, digital innovation, healthcare, biotech, creative industries, and defence.' Recent milestones include the announcement of a UK-Saudi Sustainable Infrastructure Assembly, aimed at enhancing collaboration between UK financial and professional services and Vision 2030's sustainable infrastructure projects. He also cited the example of UK-based Phytome Life Sciences, which launched 'a UK-Saudi innovation-investment bridge with the Research, Development and Innovation Authority (RDIA), to accelerate research, development and investment in medicines, materials and agricultural solutions.' Academic collaboration is another key focus. 'Our UK universities have already been working in this space, with one notable example being the partnership in AI for precision medicines between the University of Oxford and King Abdulaziz University, and we hope to see more partnerships thrive,' he added. 'With more than 1300 UK firms operating in Saudi Arabia and more than 50 UK companies establishing regional headquarters in the Kingdom,' Ashby said, 'the export of UK skills and expertise to the country puts the UK in a strong position to support the transformation that is taking place through Vision 2030.' Supporting giga-projects UK firms are also playing a growing role in the Kingdom's giga-projects, including NEOM and the Red Sea Project. 'UK firms are making substantial contributions to Saudi Arabia's giga-projects, bringing world-leading expertise in innovation, sustainability, and technical excellence,' he said. He cited Graphene Innovations, a Manchester-based firm that 'recently announced the world's first commercial production plant for graphene-enriched carbon fibre with NEOM.' The facility is expected to 'generate £250 million of investment into a research and innovation hub in Greater Manchester and is expected to create more than 1,000 skilled jobs in the region.' On the Saudi side, the project is expected to 'contribute over 4,500 skilled jobs to Saudi Arabia's economy by 2030, generating revenues exceeding $1.6 billion.' Ashby said these partnerships showcase 'the UK's strengths in clean technology, advanced materials, and sustainable infrastructure — all critical components of Saudi Arabia's ambitious giga-projects as they move from strategy into delivery phase.' Clean energy, smart Infrastructure and capital markets Clean energy partnerships between the UK and Saudi Arabia are valued at £7.7 billion and are 'set to create over 4000 UK jobs,' Ashby noted. Among them is Carbon Clean's work with Aramco on modular carbon capture, and Next Generation SCM's deal with City Cement Co. to produce 2.5 million tonnes of sustainable cement and concrete materials annually. On financial services, Ashby emphasized the UK's global role: 'All Saudi Arabian bond and sukuk issuances have been made through The London Stock Exchange (LSE), with $41.8 billion in capital raised in 2024 alone. This demonstrates the deep trust Saudi institutions place in UK financial markets.' By leveraging this expertise, UK firms are 'supporting the development of more sophisticated capital markets, and facilitating Saudi companies' access to global investment.' UK-GCC FTA Looking ahead, Ashby underscored the strategic significance of a UK-Gulf Cooperation Council Free Trade Agreement. 'This could grow trade between the UK and the GCC by 16 percent, adding an extra £8.6 billion a year to trade. Of course, this would further help to grow the UK-Saudi trade relationship.' He acknowledged that one of the main challenges isn't regulation, but perception. 'In fact, many UK companies are surprised by how straightforward it is to do business in Saudi Arabia — so I would say that making sure that business leaders fully understand the market is probably the biggest challenge,' he said. 'Many business leaders talk of understanding the Gulf, but the countries within the region are very different. Saudi Arabia is a unique country, with extraordinary, hard-working, and innovative leaders in business and government.' His advice to executives: 'I would encourage all leaders with a serious interest in partnering in the Kingdom to come and build relationships directly here.' Future opportunities Ashby said the UK's upcoming Industrial Strategy 'emphasises the importance of shaping markets to meet rapid global economic changes ensuring that the UK remains at the forefront of innovation and investment opportunities.' He identified growth sectors aligned with Saudi Arabia's trajectory: 'Advanced manufacturing, especially involving innovative materials like graphene-enriched carbon fibre, offers substantial growth potential. The creative industries, digital technology, healthcare, and biotech sectors also present significant opportunities.' On tourism and entertainment, he added: 'Saudi Arabia's focus on developing tourism and entertainment infrastructure creates openings for UK firms with experience in these sectors.' 'As Saudi Arabia continues its impressive delivery of Vision 2030, I see great potential and opportunities for UK and Saudi businesses to contribute to the growth and prosperity of each other's economies.'
Daily Tribune
07-04-2025
- Business
- Daily Tribune
Saudi stocks take 5-year record fall after US tariffs: state media
The Saudi stock exchange was down 6.78 percent on Sunday, the worst daily loss since the Covid-19 pandemic according to state media, after sweeping US trade tariffs sent global markets tumbling. President Donald Trump's tariff offensive unleashed this week has sparked a global stock market rout, also raising fears of a general trade war and recession. In Saudi Arabia, the state-run Al-Ekhbariya television channel reported online that 'the Saudi stock index closed trading down (nearly) 7%, losing more than 800 points' on Sunday. The network called it 'the largest daily loss in five years' since the early days of the Covid-19 pandemic, with dozens of Saudi companies including oil giant Aramco in the red. 'Trump's tariffs weighed heavily on global markets, and specifically today on Saudi markets,' Al-Ekhbariya reported. The utilities sector was down 8.4 percent, banking 6.9 percent, telecommunications 5.9 percent and energy 5.29 percent, it added. Shares in Saudi Aramco -- the crown jewel of the kingdom's economy -- fell 6.2%. State-run financial newspaper Al-Eqtisadiah said that 'the Saudi stock market lost more than half a trillion riyals (about $133 billion) in market value during Sunday's trading'. A large portion of the losses was attributed to Aramco shares, with the energy giant's market value falling by 'more than 340 billion riyals', according to Al-Eqtisadiah. Other Gulf markets also took a dive, reflecting global trends as countries around the world grapple with Trump's shock tariffs affecting US allies and rivals alike. According to official news agencies, Kuwait's primary index fell 5.7%, the Qatari stock exchange was down 4.2%, and in Oman, the Muscat stock market closed with a 2.6% decline. There was no trade in Abu Dhabi and Dubai, as the United Arab Emirates now has a Western-style Saturday-Sunday weekend. Under Trump's policy, goods from Saudi Arabia, Kuwait, Qatar, Oman and the United Arab Emirates will be subject to a 10% 'baseline' tariff. The uncertainty over trade and manufacturing has helped to fuel a days-long panic in global markets. Stock exchanges in Europe and Asia closed at a loss on Friday, and analysts expect further declines when they reopen on Monday.
