Google to offer free websites to Saudi SMEs

Google plans to launch a series of events aimed at getting more Gulf firms online as it looks to increase its business in the Middle East, its regional managing director said.
The world’s largest internet search engine estimates that just 15 percent of GCC businesses are currently online. Google aims to bolster numbers by developing free websites for small-to-medium-sized firms (SMEs) in Saudi Arabia and offering advice on how to monetise their digital presence, said Ari Kesisoglu.
“The idea is that we want to help businesses get online. [We want to] make it extremely easy for businesses,” he said. “E-commerce is just in its infancy [in the GCC]…. Businesses need to be online before they can do any online business.”
The concept follows a pilot scheme launched in the UK that offered around 1,500 businesses in Liverpool one-to-one advice about building a website and maximising their search potential.
Google, which has rolled out a host of free initiatives in a bid to shake off allegations it has grown too powerful, said it would host its G-UAE Day on October 19-20in Dubai.
G-Days are Google-hosted developer and tech business days that aim to introduce the tech community to the latest technologies.
“One of the key things [about G-Days] is us brining the latest technology in the world to the region. We want to give people who are interested in doing things online and we want to help them. If at the end, we have a couple of new implementations of the latest technologies for the region that is a success,” said Kesisoglu.
The Middle East is one of Google’s biggest growing markets, spurred by its burgeoning youth population. Two thirds of the Arab world is under the age of 25 and among the fastest adopters of new online technology.
Google told Arabian Business in June it was “aggressively” hiring staff and boosting investment in both its English and Arabic-language products in the region.
Google in February said internet usage in the Middle East grew 39 percent in 2010, to 86 million people, up from 64 million the previous year.
The digital advertising business – led by search engines, banner ads, mobile texts and social media, will swell to $170m this year (of a $3bn MENA advertising pie), up from $120m.

Source: Arabian Business

Saudi slips from 6-week high as investors book profits

Saudi Arabia's index fell as investors locked in gains from Saturday's rally.
Petrochemicals led declines, but banking stocks also ended lower despite advancing in early-trade.
Bellwether Saudi Basic Industries Corp (SABIC) slipped 0.8 percent, Yanbu National Petrochemical Co retreated 0.9 percent and Saudi Kayan Petrochemicals fell 1.2 percent.
SAAB weighed on the banking sector, down 3.2 percent, while Banque Saudi Fransi dropped 4.1 percent.
The main benchmark slipped 0.5 percent to 6,144 points, slipping from Saturday's six-week high. It had risen following an upbeat end to the trading week on global markets.
Qatar's bullish economic outlook helped the gas exporter's share index ended at a two-week high, while Abu Dhabi's benchmark slumped to a four-week low as newly-listed Eshraq Properties declined.
Qatar's measure rose 1 percent to 8,432 points, its highest close since Sept 4. Qatar is the best performing regional market this year, falling 2.9 percent. A Reuters poll of analysts in June forecast Qatar's economy would expand 16.7 percent in 2011.
Islamic bank Masraf Al Rayan gained 1.4 percent, accounting for nearly half of all shares traded. Industries Qatar climbed 2.8 percent and Barwa Real Estate advanced 1.9 percent.
"Qatar will likely continue to outperform the region - it is one of the fastest growing economies in the world and has a lot of liquidity in the system," said Shahid Hameed, Global Investment House head of asset management for the Gulf region.
In December, Qatar was chosen to host the FIFA World Cup 2022, which is expected to boost its economy.
The Qatari government has allocated 40 percent of its budget between now and 2016 to infrastructure projects, including $11bn on a new international airport, $5.5bn on a deepwater seaport and $1bn for a transport corridor in the capital, Doha. It will spend $20bn on roads.
Elsewhere, Abu Dhabi's Eshraq falls 2 percent, while banks also slide. Abu Dhabi Commercial Bank dropped 1.3 percent and National Bank of Abu Dhabi slipped 1.4 percent.
Abu Dhabi's index fell 0.2 percent to 2,571 points, its lowest close since Aug 22.
Meanwhile, Dubai's measure gained 0.3 percent to close at 1,472 points, easing 1.4 percent so far in September.
Takaful Emarat added 1.4 percent, accounting for nearly half the traded shares on the index. Short-term retail investors often target insurance stocks.
Oman's bluechips lifted the country's bourse for a fourth straight session, boosted by gains in world stocks on Friday, but buying interest remained muted.
Renaissance Services gained 0.4 percent and Bank Muscat closed 1.2 percent higher.
"The market expected a rally after a week of consolidation, but overall activity is still lower than our anticipation," said Kanaga Sundar, Gulf Baader Capital Markets head of research. "Hopefully, further clarity in the global picture and emerging Q3 results should help with the improvement in market volumes."
The index ended 0.3 percent higher at 5,743 points, with its next resistance at 5,900 points.
Investors are following developments in the euro zone as it tackles a spiralling debt crisis, while looking for cues on US' economic outlook.
Oman's companies were expected to post fourth-quarter earnings growth on the previous quarter, driven by banks, according to Sundar.
Elsewhere, Kuwait's index ended 0.4 percent lower at 6,003 points, giving back early-session gains.
Telecoms operator Zain was the main drag on the index and had the highest turnover as it slipped 2 percent. National Investment Co shed 1.8 percent Kuwait Finance House declined 1.1 percent.
In July, Kuwait's newly formed regulator Capital Markets Authority (CMA) gave investment funds until March 2012 to impose a cap on their ownership in individual financial securities.
"People are blaming the lacklustre trade on the CMA rules but I don't see major challenges in the market" said Shahid Hameed, Global Investment House head of asset management for the Gulf region.
"Q3 results are expected to be generally muted and fairly in-line with Q2 results. People don't expect much fireworks or negative surprises."

Source: Reuters

Saudi index leads Gulf decline; euro crisis, oil weigh

Saudi Arabia's index slumped to a three-week low, halting a three-session rally, with jittery investors booking profits as fears of a debt default by Greece and tumbling European equities weighed on local sentiment.
World shares fell 2 percent on Monday, with European stocks down 3 percent for a more than 20 percent loss this year.
In Saudi Arabia, banking and petrochemicals - the two heavyweight sectors - slid.
Newly-listed Integrated Telecom Company slumped 7.4 percent and is the most traded stock. Alimna Bank dropped 1.1 percent and bellwether Saudi Basic Industries Corp (SABIC) fell 2.9 percent.
"If the market moves along fundamentals, we should see positive movement in the index going forward but a lot of this depends on the international markets," said Asim Bukhtiar, head of research at Riyadh Capital. "If there are further shocks [internationally], it could affect Saudi Arabia."
Some analysts expected a better second-half in terms of corporate earnings, despite the gloomy picture.
"Banks and telecoms look attractive at the moment. Both have been oversold and offer attractive entry points," Bukhtiar added.
The benchmark declined 1.7 percent to 6,037 points, its lowest close since August 24 and extending its 2011 losses to 8.8 percent.
Oman's Renaissance Services fell after warning it will be tough to recover the $2.9m lost in fraud at its marine unit Topaz and most Muscat shares ended lower, with regional markets weak amid growing concerns about Europe's debt crisis.
The oil services firm, the third-most active stock on Oman's index , closed 0.6 percent lower and was down 38.1 so far in 2011. It has completed an investigation in to the misappropriation of $2.9 m and isolated fraud to one foreign unit, it said on Monday.
"This may be taken as a constructive step towards developing the trustworthiness of the company over a medium to longer term," said Kanaga Sundar, Gulf Baader Capital Markets head of research in a note. "The stock is still trading at a lower valuation for the next fiscal year as compared to the global offshore support vessel players."
Heavyweight Bank Muscat declined 0.2 percent and Bank Sohar slipped 0.7 percent.
The benchmark ended 0.6 percent lower at 5,676 points, extending its 2011 losses to 16 percent.
Elsewhere, Kuwait's index slipped 0.05 percent to 5,977 points, ending a 10-day rally. Large-caps were down, but logistics operator Agility bucked the trend and surged 8.5 percent to its highest close since July 14.
Agility extends gained for a second day since a media report in Kuwaiti daily Al Qabas said the company had formed an alliance to buy into the privatisation of state-owned Kuwait Airways.
Dubai's shares slumped to a three-week low and neighbouring markets also slid as investors eyed losses in world shares amid fears Greece may default and signs of rifts among euro zone policymakers. .
World shares tumbled nearly 2 percent on Monday with European equities at 26-month lows.
Dubai's top traded stocks, the main targets for retail investors who try to profit in short-term trading, head losers. Emaar Properties and builder Arabtec fell 1.4 and 2.2 percent respectively, while contractor Drake & Scull dropped 2.1 percent. The trio accounted for nearly half the total shares changing hands on the index.
"Fears over a US double-dip recession and debt problems spreading from Greece to other European countries is increasing risk in international markets," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. "That's why we're seeing a sell-off across the board which is pressuring our markets. There's a lack of interest for taking risk. I would not expect foreigners to head to our markets."
Dubai's benchmark dropped 0.9 percent to 1,460 points, its lowest close since August 24.
Abu Dhabi's index shed 0.4 percent to 2,584 points, its fourth-straight decline to take its 2011 loss to 5 percent. Property stocks slid, with Aldar Properties down 1.6 percent and Sorouh Real Estate dropping 1.7 percent.
Elsewhere, Doha's bourse slipped 1 percent to close at 8,295 points, taking its year-to-date losses to 3.6 percent, the top performing Gulf Arab benchmark. Qatar's stocks have proved more resilient because of the country's robust economy, which is forecast to grow 16.7 percent in 2011.
Doha losers outnumbered gainers 16 to three. Heavyweight Industries Qatar (IQ) slipped 1.7 percent and Qatar National Bank fell 0.6 percent.
"The banking sector is the most eyed in Qatar, as well as petrochems like IQ. Qatar's petrochems are the most attractive in the region at current prices," Shurrab said.

Source: Reuters

Saudi prince calls on US to back Plaestinian UN status

Saudi Arabia's former top US diplomat pressed the United States to support a Palestinian bid to upgrade its UN status, saying that its longtime ally would "risk losing the little credibility it has in the Arab world" if it failed to do so.
Palestinians are seeking either full membership or recognition as a non-member state when the UN General Assembly convenes next week, seeking to level the playing field with Israel, which opposes the move.
The United States vowed four days ago to use its Security Council veto against a Palestinian move for membership.
"With most of the Arab world in upheaval, the 'special relationship' between Saudi Arabia and the United States would increasingly be seen as toxic by the vast majority of Arabs and Muslims, who demand justice for the Palestinian people," Prince Turki Al Faisal, former chief of Saudi Arabia's intelligence services and former Saudi ambassador to the United States, wrote in an opinion piece in Monday's New York Times.
"American support for Palestinian statehood is therefore crucial, and a veto will have profound negative consequences," he wrote.
"In addition to causing substantial damage to American-Saudi relations and provoki ng uproar among Muslims worldwide, the United States would further undermine its relations with the Muslim world, empower Iran and threaten regional stability.
"Let us hope that the United States chooses the path of justice and peace."
Saudi Arabia argues that its biggest foe in the region, Iran, will exploit any discord among Palestinians and try to destabilise the region.
Prince Turki said Saudi Arabia would be forced to adopt "a far more independent and assertive foreign policy," threatening that it could break with US policy on Iraq, Afghanistan and Yemen.
In the event of a US veto, Prince Turki, nephew of Saudi Arabia's king, warned "Saudi Arabia would no longer be able to cooperate with America in the same way it historically has."
Saudi support has been crucial for US policy in the Middle East, which has become less predictable as calls for reform toppled leaders and threatened autocratic rulers. This has frayed the traditionally strong ties between the world's top oil exporter and biggest economy.
"The Palestinian people deserve statehood and all that it entails: official recognition, endorsement by international organisations, the ability to deal with Israel on more equal footing and the opportunity to live in peace and security," the prince wrote, adding that the administration of president Barack Obama was "preoccupied with a deteriorating domestic economy and a paralysed political scene."
"Today, there is a chance for the United States and Saudi Arabia to contain Iran and prevent it from destabilizing the region," Prince Turki said. "But this opportunity will be squandered if the Obama administration's actions at the United Nations force a deepening split between our two countries."

Source: Reuters

KH to finish Zain Saudi due diligence by September

Saudi Arabia's Kingdom Holding has announced that its signing agreement to finish due diligence for its joint $950m bid to acquire a quarter-stake in telecoms operator Zain Saudi by the end of this month, Reuters has reported. In March, Kuwait's Zain has agreed to sell its stake in indebted affiliate Zain Saudi to joint bidders Kingdom and Bahrain Telecommunications co (Batelco).

Source: Reuters

German gov't thwarts bid to block Saudi tank deal

German Chancellor Angela Merkel's conservatives have thwarted a parliamentary manoeuvre by the opposition that would have halted a secret multi-billion euro tank deal with Saudi Arabia.
The vote just before parliament's summer recess was seen as test of the chancellor's control over her coalition.
The government has faced sharp criticism from opposition lawmakers and even within its own ranks after media reports - confirmed to Reuters by Saudi security sources - said Berlin had agreed to sell 200 Leopard 2 tanks to Saudi Arabia.
Opponents say the deal contravenes the country's export guidelines for military hardware and the tanks could be used to suppress human rights and bolster the ruling royal family in the world's largest oil exporter.
"They are failing a historic situation (in the Middle East)," opposition Social Democratic leader Sigmar Gabriel told parliament. "Germany and Europe must support the democratic movement and not feudal dynasties."
The Germany government cannot acknowledge the deal because exports of military equipment are confidential and disclosure is punishable by a fine or jail.
"Confidentiality protects Germany's relations with potential trade partners and their interests," Merkel spokesman Steffen Seibert said before the vote.
Germany's three opposition parties - the Social Democrats, Greens and Left party - each put forward bills that would have prevented tanks from being exported to Saudi Arabia and, in effect, forcing the government to officially disclose the deal.
Selling armaments abroad is a sensitive issue in Germany due to its Nazi past, as well as the role arms makers such as Krupp played in feeding 19th and 20th century wars with exports to both sides of conflicts.
Germany has imposed strict rules on arms exporters, barring them from selling weapons to countries in crisis zones, with questionable human rights records or engaged in armed conflicts.
"It's known that we have differences over human rights with Saudi Arabia - that's very clear," Seibert said. "Even so, they play a constructive role in the Middle East peace process."
Without addressing the tank deal explicitly, the government has said arms exports to Saudi Arabia help strengthen the Gulf country as a counterweight to Iran in the region.
Media reports also said Israel and the United States were briefed on the deal and voiced no concerns.
"Two hundred tanks for Saudi Arabia has no effect on Israel's security interests," former Israeli ambassador to Germany Shimon Stein told German paper Rheinische Post in a preview of its Saturday edition.
The 2A7+ Leopard tanks said to comprise the Saudi orders are made by Krauss-Maffei Wegmann and Rheinmetall and viewed as among the most effective battle tanks in the world.
In spite of self-imposed restrictions, Germany's arms exports have doubled in the last decade and the country is now the world's third-largest weapons exporter behind the United States and Russia.q

Source: Reuters

Doubts cast over Saudi Arabia's $ 613 m ports plan

Analysts have cast doubts over Saudi Arabia's $613m ports expansion plan in light of similar projects under way in other Gulf countries.
Business Monitor International said in a new report that it was "not convinced" by the kingdom's plan to establish transhipment hubs, given the number of rival projects in the region.
Last week, Saudi transport minister Jobarah al-Suraisry confirmed the ports expansion plan, saying particular focus would be on the industrial ports of Yanbu and Jubail.
The country currently has nine primary ports with some 200 docks.
Some cater for both dry-bulk shipments and containers, while others are used for dry-bulk shipping only.
BMI analysts said that as Saudi Arabia looks to diversify its economy away from an overreliance on the export of crude oil to fuel its economy, industrial ports will become ever more important.
These ports will also be essential to feed Saudi Arabia's expansive infrastructure investment programme, which will see $400bn spent in the five years to 2013, BMI added.
With domestic consumption growing, BMI also said it sees a need for increased capacity in Saudi Arabia's container ports.
But it questioned the wisdom of expanding the port of Dammam where capacity will rise to 3 million 20-foot equivalent units (TEUs).
"BMI is wary about this scheme, however, as the expanded port is intended to serve not only the Saudi populace, but to act as a transhipment hub for the wider Gulf region," analysts said,
"Given the large number of ports vying for this crown in the Gulf, either established or in the construction process, we believe that some will have unused capacity for years to come.
"The Khalifa bin Salman Port in Bahrain has already experienced difficulties in attracting transhipment custom, and an international dispute has emerged over neighbouring projects in Kuwait and Iraq," they added.
Saudi Arabia's largest container port is the Jeddah Islamic Port on the country's Red Sea coast, which in 2010 handled 3.83m TEUs, on impressive growth of 23.9 percent.

Source: Arabian Business
Around July 9, 2011

Saudi Arabia's crude output hits 2011 high in June

Saudi Arabia's crude output hit a high for the year so far of around 9.5-9.6 million barrels per day (bpd) in June, up nearly 800,000 bpd from May, industry sources said on Monday.
Industry sources previously estimated the world's largest oil exporter could pump around 9.8 million bpd in June, after it pledged to supply all the oil needed when exporter group OPEC did not agree a coordinated increase on June 8.
Some analysts say the subsequent release of strategic oil stocks by the International Energy Agency (IEA) group of major consuming countries could dampen Gulf OPEC countries' efforts to increase output.
An industry source said he expected Saudi production in July to be slightly lower than in June.
Saudi output last rose above 9.5 million bpd in the middle of 2008 after oil prices set a record $147 a barrel.
State oil giant Saudi Aramco [SDABO.UL] cut the official selling price (OSP) of flagship export grade Arab Light by a smaller-than-expected 10 cents for August.
It raised the Arab Heavy OSP by 75 cents, surprising Asian refiners who had hoped for lower prices as part of the kingdom's strategy to sell more in the region.
On Monday the IEA said the amount of oil to be released would be 784,000 barrels lower than an earlier target of 60 million barrels with less barrels coming from Europe.
Ten refiners in China, Japan, South Korea and Taiwan turned down a Saudi offer for more crude in August, traders said on Monday.
Plentiful supply of Russian ESPO crude in the region and weaker Chinese crude imports - which fell 11.5 percent, year on year, in June to their lowest in eight months - have reduced the need for extra Saudi crude.

Source: Reuters

Air Arabia to commence flights to Saudi city of Gassim

Air Arabia, the Middle East’s biggest low-cost carrier, is to commence scheduled flights to the Saudi Arabian city of Gassim on July 15, the carrier announced on Monday.
Operating from its UAE base in Sharjah, Air Arabia will operate four weekly flights to Gassim.
“We are extremely pleased to introduce our new service between Sharjah and Gassim, which marks the fifth destination in Saudi Arabia reachable via Air Arabia,” said AK Nizar, head of commercial department at Air Arabia.
“As we approach the holy month of Ramadan, we are pleased to offer one more way to help bring friends and families together for the holidays.”
In May, Air Arabia posted a 12 percent decline in first-quarter net profit as rising fuel costs and political unrest put pressure on margins.
The low-cost carrier saw a net profit of AED44.2m for the three months to March 31, down from AED50m in the same period a year earlier. Revenue for the quarter rose six percent to AED513m, up from AED482m in the year-earlier period.
Air Arabia said it carried 1.2 million passengers in the first quarter, a rise of 11 percent on the same period a year earlier. Average seat load factor rose 6 percent to 85 percent.

Source: Arabian Business

Yansab Q2 profit nearly doubles on sales, price hike

Saudi-based Yanbu National Petrochemical Co (Yansab) quarterly profit nearly doubled due to higher product prices and sales, it said on Monday.
Yansab, a unit of Saudi Basic Industries Corp (SABIC), had second-quarter net profit of SAR963.67m ($257m), up from SAR502.38m in the prior-year period.
The results topped analysts average forecasts for profit of SAR731.33m, according to a Reuters poll.
Operating profit jumped 82 percent to SAR1.08bn in the second quarter, Yansab said, adding profits increased from the previous quarter due to the rise in sales.
Yansab made a first quarter net profit of SAR717.85m, according to a statement on the Saudi bourse.
Yansab started commercial operations in March last year.
Brokerage Nomura said last month it expected Middle East petrochemical firms to see another quarter of strong earnings growth due to the continued rise in chemcial prices combined with increased plant utilisations.
Saudi Arabian Fertilizers Co on Sunday reported a 13-percent-drop in second quarter earnings.

Source: Reuters

Jeddah airport eyes 80m passenger capacity by 2035

Jeddah’s King Abdulaziz International Airport is forecast to see a four-fold surge in annual passenger capacity to 80m by 2035 and has put in place a vast expansion plan to cater to the increased demand, a top executive at the airport said.
At present, King Abdulaziz International Airport (KAIA), which is the home base for Saudi Arabian Airlines and the entry point for the holy cities of Makkah and Madinah, currently has three terminals and three runways.
While it has facilities to handle a capacity of nine million passenger a year, Engineer Muhammad Abed, the airport’s director general, told Aviation Business magazine the airport handled a massive 20m passengers in the last twelve months.
“Which is much, much higher than our capacity,” said Abed. “It was therefore essential to develop a new terminal for the airport. Luckily we have a significant amount of land available for the project, which will be located between the east and centre runways, without making an impact on current operations.”
The development of the airport will be in three phases and Abed has estimated the capacity is set to surge even further over the next few decades.
“Three phases of development have been outlined and we expect to reach an ultimate capacity of 80 million annual passengers by 2035, still using the existing three runways.
“The project will follow a ‘just in time’ approach, so after the first phase is completed and the maximum capacity of 30 million annual passengers has been reached, we will automatically start the second phase, with a capacity of 43 million passengers. After that is reached, the third and final phase will commence, leading to the ultimate capacity of 80 million annual passengers,” Abed is quoted as saying.
The first phase of development was started in January 2011 and the foundation stone was laid by HRH Prince Sultan bin Abdulaziz.
In May, Canadian transportation company Bombardier Transportation said it had inked a $96m deal to build and operate a people mover system at the airport.
The firm has signed a contract with construction giant Saudi Bin Laden Group to design, build, operate and maintain a Bombardier Innovia APM 300 system to ferry passengers between terminals at the Jeddah airport.
Saudi Bin Laden Group is the contractor responsible for the design and construction of the airport project and was awarded its contract by the Saudi Arabian General Authority of Civil Aviation (GACA) earlier this year.

Source: Arabian Business

anything about gold price?

Gold price came down 100 dollar per ounce

it is 1600 dollar per ounce yesterday

I don't know in Sauid riyal

I think it is around 180 Saudi riyal per gram

Samba chief wins Lifetime Achievement at CEO Awards

Samba Financial Chairman Eisa Al Eisa on Tuesday received a Lifetime Achievement Award at the 2011 CEO Middle East Awards.
The event at the Armani Hotel, Dubai saw Eisa acknowledged for his work at the Saudi lender, which opened in 1980.
The highlight of the evening was the award of two special honours made to Russian billionaire Eugene Kaspersky and Arabtec Holding chief financial officer Ziad Makhzoumi.
Kaspersky, who flew in from Moscow for the event, made a speech on his war against cybercrime, before later picking up an award for ‘Outstanding Contribution to Business’.
The judges said the award recognised the businessman had he “done more than almost anyone on the planet” in the battle for online security.
Arabtec’s Makhzoumi scooped the ‘Special Recognition Award’ in recognition of his tireless behind-the-scenes work at the UAE’s biggest building company, the judges said.
The year’s event saw a total of 15 awards handed out to top executives at firms such as Virgin Megastore, UAE telco du, healthcare giant GE Middle East and homegrown hospitality firm Rotana Hotels.
Full list of winners:
Lifetime Achievement - Eisa Al Eisa, Samba Financial Group
Outstanding Contribution to Business - Eugene Kaspersky, Kapersky Group
Special Recognition Award - Ziad Makzoumi, Arabtec Holding
Female CEO of the Year - Nisreen Shocair, Virgin Megastore, MENA
Banking CEO of the Year - V Shankar, Standard Chartered
Retail CEO of the Year, Partrick Chalhoub, Chalhoub Group
Young CEO of the Year - Iskander Najjar, Alpari
Visionary of the Year - Jamal Lootah, Imdaad
Telecoms CEO of the Year - Osman Sultan, Du
Insurance CEO of the Year - Tariq AL-Fayez, Elite Insurance and Reinsurance Brokers
Corporate Social Responsibility - Qtel
Healthcare CEO of the Year - Nabil Habayeb, GE Middle East
Hospitality CEO of the Year - Selim El Zyr, Rotana Hotels
Aviation CEO of the Year - Ghaith Al Ghaith, Flydubai
Construction CEO of the Year - Andrew Elias, Kelee Contracting
Source: Arabian Business

Saudi shares plunge as US downgrade fuels fear

Saudi Arabian shares tumbled for a third day, sending the benchmark index to its largest intraday drop since March, amid rising concerns about the global economy after Standard & Poor’s cut the US’s credit rating for the first time.
Saudi Basic Industries Corp, or Sabic, the world’s biggest petrochemicals maker, fell the most in five months. Al Rajhi Bank, the kingdom’s largest publicly traded lender by market value, reached its lowest price since March.
The 147-company Tadawul All Share Index slumped 5.5 percent to 6,073.44, the steepest decline since March 1, at the 3:30 pm close in Riyadh. All 15 industry groups fell. The gauge has fallen 10.5 percent from the year-high of 6,788.42 on Jan. 16.
“The Saudi market is reacting to the steep declines in global markets over the weekend,” said Asim Bukhtiar, an equity analyst at Riyad Capital. “Growing concerns of the US relapsing into recession are driving sentiment.”
US stocks fell the most in 32 months this week and European stocks posted their biggest weekly loss since November 2008. The S&P 500 slumped 7.2 percent, the biggest weekly drop since November that year. The Stoxx 600 Europe Index tumbled 9.9 percent to 238.88 this past week, the gauge’s lowest level in 13 months.
Oil tumbled 9.2 percent this week, the biggest drop since the week ended May 6. Crude for September delivery was settled at $86.88 a barrel on the New York Mercantile Exchange. Saudi Arabia holds 20 percent of the world’s proven oil reserves.
“The combination of the global equity and commodities meltdown during the Saudi weekend, and to a lesser extent the expected downgrade by S&P, is having an impact on all sectors of the market,” said Fuad Aghabi, a director at Ajeej Capital, in Riyadh.
Standard & Poor’s downgraded the US’s AAA credit rating for the first time since 1941. S&P lowered the US one level to AA+ while keeping the outlook at “negative”. The US immediately lashed out at S&P, with a Treasury Department spokesman saying the firm’s analysis contains a $2 trillion error. The rating may be cut to AA within two years if spending reductions are lower than agreed to, interest rates rise or “new fiscal pressures” result in higher general government debt, the New York-based firm said yesterday.
“At this point, the impact of the ratings downgrade is not evident,” said Bukhtiar. “Regional markets will take their cue from global markets on Monday when they open.”
Saudi Arabia’s holdings of foreign securities rose 12 percent this year to a record SR1.32 trillion riyals ($350 billion) as of June 30, Saudi central bank data show.
Sabic slumped 5.8 percent to 97.75 riyals, the sharpest decline since March 1. Al Rajhi declined 5.2 percent to 68.25 riyals, the lowest price since March 2. National Industrialization Co, known as Tasnee, dropped 7.3 percent, the sharpest fall since April 4, to 39.30 riyals.
A total of 144 shares dropped while one stock gained. Rabigh Refining and Petrochemicals Co sank 9.9 percent to 22.60 riyals and Kingdom Holding Co weakened 9.6 percent to 7.10 riyals.
“This is a reaction to global instabilities, however, the fundamentals of the Saudi market remains strong, evidenced by very good first-half results,” said Aghabi.
Saudi Arabia’s stock exchange is the only Gulf Arab bourse open on Saturdays

Source: Bloomberg

Kingdom's foreign assets surge

Saudi Arabia’s foreign assets grew by more than SR40 billion in June to push them to their highest ever level, Saudi Arabian Monetary Agency (SAMA) said in its monthly bulletin for July, on account of strong oil prices and a surge in the Kingdom’s crude output.
Against this backdrop, the Kingdom is expected to register a fiscal surplus by the end of the year.
For 2011, Saudi Arabia announced another record high budget of SR580 billion for 2011, with a deficit of SR40 billion.
National Commercial Bank (NCB) said earlier the 2011 deficit could turn into an actual surplus of around SR77 billion.
"We believe that revenues are underestimated, and the government will still manage to record a surplus in 2011. With our forecast of $80 for the average Arabian light spot prices and an 8.5 million bpd for average oil production in 2011, we project revenues and expenditures at SR753 billion and SR677 billion, respectively. This would lead in turn to a budget surplus of SR77 billion, or 4.2 per cent of estimated GDP in 2011," NCB said.
From SR1,856.2 billion ($495 billion) at the end of June, total foreign assets controlled by SAMA soared to an all time high of SR1,897 billion ($505.8 billion) at the end of June.
As a result, Saudi Arabia’s foreign assets swelled by a whopping SR192 billion in the first half of 2011, the biggest increase in such a period of time, according to financial analysts.
A breakdown showed SAMA’s deposits with banks abroad grew from SR360.1 billion at the end of May to SR372.5 billion at the end of June.
Investment in foreign securities swelled from SR1,293.8 billion to SR1,321.3 billion.
Foreign currencies and gold rose from SR154.5 billion to SR156.5 billion while other "miscellaneous" assets slipped to SR23.3 billion from SR24 billion.
Saudi Arabia’s foreign assets recorded one of their largest increases of nearly SR513 billion during 2008, when oil prices climbed to their highest annual average of nearly $95 a barrel. But a sharp fall in crude prices depressed them by SR139 billion in 2009.
In 2010, the budget reverted into a surplus of SR109 billion after oil prices increased by at least $15 a barrel.
But analysts believe the shortfall will again revert into a surplus at the end of the year on the grounds the oil price assumed by Riyadh of just under $60 will be far below the expected actual price. In the first six months of 2011, crude prices averaged nearly $100 a barrel and could remain relatively high through 2011
Source: Saudi Gazette

Saudi reshapes controvesial anti-terror law

Saudi Arabia has revised an anti-terrorism law and made it less severe than a leaked version that was heavily criticised by human rights groups, a Shura Council spokesman said on Saturday.
"The draft that was published is not the final one," said Mohammed Almohanna, spokesman for the advisory parliament.
"It was discussed in a Shura Council session. It was a draft and some changes were made to it to ensure that the law is compatible with Sharia [Islamic law] and does not violate citizens' rights or the country's existing laws," he said.
He said the Shura would amend the draft further when its summer recess ends in mid-September before sending it to the king for approval.
Amnesty International, which published a draft of the Penal Law for Terrorism Crimes and Financing Terrorism on its website, said on July 22 that the authorities could use the law to stifle dissent and pro-democracy protests in the absolute monarchy.
Saudi Arabia, a US ally and top world oil exporter, follows an austere version of Sunni Islam. It has no political parties. The appointed Shura Council has only limited powers.
The draft law, in the version published by Amnesty, would consider "endangering... national unity" and "harming the reputation of the state or its position" as terrorist crimes, and would allow suspects to be held incommunicado for an indefinite period, if approved by a special court.
It would also stipulate a minimum 10-year jail sentence for questioning the integrity of the king or crown prince.
But an amendment to the draft changes the offence to taking up arms against the king or crown prince or abandoning loyalty to them, Saudi activist Waleed Abu Alkhair said.
He said the Shura Council's changes might be overridden. "There is trepidation that the amendments will not be accepted... It is clear that there was an attempt to pass this quickly and secretly," Abu Alkhair said.
The draft law version on Amnesty's website was marked "secret and urgent" and indicated that the council would have one month from an unspecified date to make changes to the law.
The draft law would also give the Interior Minister broad powers to act to protect internal security without judicial authorisation or oversight.
Activists say thousands of people are held in Saudi prisons without charge or access to lawyers, despite a law that limits detention without trial to six months. The draft law would largely formalise such practices.
"We witnessed severe violations by the Interior Ministry and the executive authorities which we used to criticise as violations of the law. Now, if this law is passed, these criticisms will be considered violations of the law and the former violations will become laws," Abu Alkhair said.


Source: Reuters

Makkah projects: Panel to keep an eye on sleaze


The Makkah Mayoralty has established stricter guidelines for supervising large development projects in Makkah including those for developing unplanned districts to ensure that they progress according to plan, without financial or technical corruption.
Dr. Osama Fadl Al-Bar, Mayor of Makkah, issued a decision to form a higher committee of leading mayoralty officials to review mega-projects being executed by the mayoralty, private sector companies and the Al-Balad Al-Amin Company.
The committee has wide powers to summon anyone it wants to attend the meetings and participate in discussions about any project, he added.
Dr. Al-Bar specified that the committee will monitor and follow up on the mega-projects by focusing on several aspects of their execution.
Its key functions include receiving and reviewing documents and studies related to projects; ensuring that the company abides by the building code, according to the approved licenses; establishing urban controls; suggesting building systems for sites presented by the company tasked with executing the projects; giving technical opinions; and coming up with initiatives, ideas and future visions for sites owned by the company.
The seven-member committee, in the form of an accounts-control commission with Makkah Mayoralty, is headed by the deputy mayor for construction and projects, who will serve as its chairman, and the assistant mayor for development, who will serve as its deputy chairman.
Members include the director of urban planning, director general of lands and properties, supervisor general of the consultant studies and pioneering projects unit, director of building licenses administration and secretary of the construction and projects agency.
In his decision to form the committee, Dr. Al-Bar specified that it will meet on a weekly basis to look into subjects referred to it, and that it has the right to hold other meetings at the mayoralty headquarters, the premises of Al-Balad Al-Amin Company or the Makkah Development Authority.
The action was taken by the Makkah Mayoralty to protect its gains and make sure that development projects progress according to the aspirations of the leadership, Dr. Al-Bar added.
Source: Saudi Gazette

KSA top financial donor in Gulf

Saudi Arabia topped the list of financial donors in the Gulf Cooperation Council (GCC) countries, representing 55.6 percent of the total donations, the International Center of Research and Studies (MEDAD) report titled "Charitable Works in the Gulf Countries" said.
The report said the government sector in GCC provide 90 percent of the donations.
"This report aims to increase the charitable works as wells as developing the charitable societies in GCC," said Dr. Khaled Al-Suraihi, general director of ICRS.
He added that this report will guide the supervisors of charitable societies to intensify their works especially during the holy month of Ramdan.
The financial donations increased by 539.4 percent in 2011, while the charitable activities at 46.5 percent, was on top of the list among other activities.
"The monthly average of the charitable activities in GCC was 101," Al-Suraihi said.
The report focused on the scientific, cultural and medical conferences and symposium of charitable societies as well as the most recent media means of charitable works in the GCC.
Dr. Al-Suraihi further said the report will help the researchers to create the strategic plan of developing the social and charitable societies and providing good information for those involved in the activities of charitable societies.
The Jeddah-based MEDAD is the first center concerning about the charitable works in GCC. It is founded by scientists, academics and some officials.

Source: Saudi Gazette

Saudi landlords forced to get creative in supply glut

Saudi Arabia may be suffering from a shortfall in residential property, but its biggest cities are seeing an oversupply of commercial space forcing landlords to come up with new plans to entice tenants, according to new research.
A report by real estate consultancy CB Richard Ellis (CBRE) showed that high-end office vacancy rates in Riyadh sit at around 20 percent.
New space added onto the market during the first half amounted to just over 100,000 square meetings, outweighing demand of about 50,000 sq m.
“As a consequence, landlords are, for the first time, venturing into ‘incentives’ territory, including such offers as rent-free periods, assistance with fit-outs, professional property management and reduced or zero service charges,” the report stated.
“Although increasingly employed, the concept of landlord incentivisation remains somewhat embryonic but is likely to be enforced upon landlords as the significant supply pipeline reaches fruition.”
In Jeddah, CBRE predicted that around 250,000 sq m of top-end office space would come onto the market, which the agency said would be a significant volume for the market to absorb.
“Nevertheless, office space take-up has been healthy in 2011, with many tenants also taking the opportunity to upgrade accommodation in a climate of slightly weakening rental rates,” the report said.
“Similar to other major markets in Saudi, tenants are typically price-sensitive and focused on the rental rate and number of parking spaces rather than the quality and ‘prestige’ of new properties.”
CBRE also reported a similar situation in Khobar and Dammam, with the growth in demand for office space more than matched by growth in supply, leading to lower rents.
Social spending packages announced by King Abdullah are pumping an estimated $130bn into the Saudi economy. Much of that money will be spent on lowering the unemployment rate, which, in theory, will help boost commercial real estate demand in the medium term.
Source: Arabian Business

SCTA: Resorts prices match service quality

A classification system for tourist resorts and villages similar to that imposed on hotels is being finalized, according to an official from the Saudi Commission for Tourism and Antiquities.
Abdullatif Al-Bunaiya, Director of the SCTA's branch in the Eastern Province, said the system includes a comprehensive categorization of resorts in the region, similar to that of hotels and furnished apartments issued by the SCTA
The commission will start classifying and monitoring the places as soon as the regulation is issued. Each resort will be classified based on its level of service and commitment to standards.
The SCTAwill strictly monitor resorts and impose fines on violators, including violations of seasonal pricing, he said, adding that some furnished apartments and hotels were punished with fines and some closed temporarily for violations.

Source: Saudi Gazette

thanx hussan
hope to come soon with good news

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