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#1431
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Governor offers help to children of crash victims
Tabuk Gov. Prince Fahd bin Sultan has extended support to the three Jordanian children who lost their parents in a road accident on Sunday. The children, who had also lost a sibling in the accident, were escorted and accompanied by Saudi officials up to the Durra border crossing between the Kingdom and Jordan on their way back home on Tuesday. The youngsters narrowly escaped sustaining only minor injuries in the fatal accident, which occurred in Al-Bada near Tabuk. Both the parents and the child died on the spot, while the injured were transferred to hospital. “Two boys, aged 13 and 12, and a two-year-old girl had been discharged from Al-Bada General Hospital after undergoing treatment for their injuries,” said Mohammed Ali Alataiwali, Health Ministry director in Tabuk, who had followed up on repatriation procedures as per directives issued by the Tabuk governor. Source: Arab news
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#1432
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KSA to open embassy in Wellington this year
New Zealand Ambassador to the Kingdom Hamish MacMaster said that Saudi Arabia will open its embassy in Wellington late this year. The establishment of the embassy will be a major move toward strengthening the ties between the Kingdom and New Zealand, the ambassador told newsmen. “At present, we have a Saudi consulate general’s office in Auckland and the new embassy would further enhance the services of the Saudi government in New Zealand,” he said, adding that the Saudi government has already expressed its readiness to set up the embassy soon. The envoy was talking to reporters during the introduction of a new line of chilled lamb and beef products to Saudi Arabia by Silver Fern Farms, a leading New Zealand processor, marketer and exporter of premium quality red meat products in partnership with Almunajem, its local distributor in the Kingdom. MacMaster said the two countries have a strong food security partnership. The bilateral trade last year was around 1.5 billion New Zealand dollars, while the country’s exports to Saudi Arabia was 600,000 dollars and its imports were valued at 900,000 dollars. “We export dairy products and high quality meat products while we import energy and petrochemical products from the Kingdom,” he added. He also pointed out that his country hosts 5,000 Saudi students who are studying at various universities and colleges. Some of them live with their families. They study at various universities in New Zealand including Auckland University, Auckland University of Technology, Massey University, Waikato University, Victoria University and Otago University. “We provide them with not only a safe environment but also an atmosphere conducive to the pursuit of their education,” he said. Besides these developments, there has been regular exchange of high-level visits between the two countries. Higher Education Minister Khaled Al-Anqary was in Auckland recently to open the Saudi Cultural Center in New Zealand. Agriculture Minister Fahd Balghunaim also visited News Zealand recently. The foreign minister and agriculture minister of New Zealand also visited the Kingdom in the recent past. Last month, Higher Education Minister Khaled Al-Anqari inaugurated the headquarters of the new Saudi cultural mission in Auckland. During a presentation, Sharon Angus, chief of marketing at Silver Fern Farms, said the company brings New Zealand’s finest halal beef and lamb to the people of Saudi Arabia. “Saudi Arabia has predominantly been a frozen market and our frozen business with Almunajem has grown strongly over a long period. We are very excited to see our partnership now diversify into the higher value chilled segment, in response to Saudi Arabian consumers telling us they want a fresher, more premium red meat option." Source: Arab news
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#1433
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Saudi Arabia excels in Arab scientific research The Kingdom of Saudi Arabia has made significant progress in the research output of universities and related centers, the report issued by King Abdulaziz City for Science and Technology in collaboration with Thomson Foundation “Reuters” on indicators of research performance of scientific institutions in the Kingdom during from 2008-2012 said. The Kingdom has excelled its counterparts in the Arab countries in the Middle East during the year 2012 as it recorded 7,000 research editions in the global database “Web of Knowledge,” the state news agency SPA said Sunday. All areas of basic research in the Kingdom have witnessed remarkable progress in the volume of intellectual productivity in general, it noted. The report issued by King Abdulaziz City for Science and Technology in collaboration with Thomson Foundation “Reuters” on indicators of research performance of scientific institutions in the kingdom during the period from 2008 - 2012 AD. Source: Saudi Gazette
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#1434
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Contractors open to sue MOL after rise in worker transfers
Last updated: Wednesday, August 27, 2014 9:40 PM Saudi Gazette report RIYADH — Several contractors expressed discontent and concern about the increasing numbers of workers transferring without their approval or knowledge to other employers that have met Saudization targets, allegedly using illegal means. It is expected that employers affected by workers moving sponsors will complain through official channels against the Ministry of Labor if it does not respond to their grievances. Lawyer Abdulaziz Muhammad Al-Jarallah told Al-Riyadh that if it is proved that workers have transferred their sponsorship without fulfilling the criteria set by the Ministry of Labor and without the approval of the sponsor, the employers could go to the courts. Al-Jarallah suggested that before transferring the worker’s sponsorship to a new employer, his current sponsor should be given at least a week’s notice so that it can appeal the decision if it has grounds to. At a recent meeting of the Riyadh Chamber of Commerce and Industry's contractors committee, several employers expressed anger at the number of transfers to other companies that were within the green zone of the Nitaqat system, indicating they had met Saudization targets. They said they considered this to be illegal. The committee also criticized the new decisions of the Ministry of Labor on providing its services to firms in the three levels of the green zone (low, middle and high). The ministry’s aim is to employ more Saudi nationals and differentiate between the incentives provided to each level depending on the Saudization percentage achieved. The committee confirmed that with its decisions the ministry is tightening control over the building and construction and operation and maintenance sectors in an unprecedented manner. A committee statement said: “The ministry is depriving the companies of its services, which are their rights. “The ministry decision to cut services is increasing the suffering of the sector and development projects are stalling.” Al-Hammadi said the committee repeatedly communicated to the ministry several times through writing, press meetings, workshops or joint seminars that the specified Saudization targets for the building and construction, operation and maintenance and cleaning sectors are “unrealistic”. The committee said these targets could not be achieved and maintained. It said the ministry has not responded to these claims.
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#1435
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Oil drops on weak US demand
NEW YORK – Crude oil futures edged lower on Wednesday after a report showed declining US gasoline demand in the world's top oil consumer and a build at the key Cushing, Oklahoma storage hub. In its weekly report, the US Energy Information Administration said US crude oil stocks fell by a greater-than-expected 2.07 million barrels last week, but inventories at Cushing, the delivery point for US crude futures, rose 508,000 barrels. The four-week average for gasoline demand fell by 1.4 percent year-over-year. By 12:49 EDT (1649 GMT), US crude fell 22 cents to $93.64 a barrel after settling 51 cents higher on Tuesday on stronger US economic data.Brent crude for October delivery fell by 7 cents to $102.43 a barrel after earlier rising to $103.07. Its premium to US crude widened 15 cents to $8.79 a barrel, having hit to its largest in two months on Monday at $9.41. — Reuters Source: Saudi Gazette
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#1436
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Saudi hydrocarbon sector outlook dim
JEDDAH – The outlook for Saudi Arabia’s hydrocarbon sector turned bleak in the third quarter of this year, the National Commercial Bank said in its “Saudi Arabia Business Optimism Index – Q3 2014” report released Wednesday. The Composite BOI for the hydrocarbon sector shrank from 49 in Q2 2014 to 25 in Q3 2014, reaching the lowest level since Q4 2012 as all constituent parameters reflected a downward trend. The composite index for non-hydrocarbon sector registered a 14 points slide, partly due to the seasonal downturn during summer and partly on the back of expectations skewed toward a trend of stability. Further, “The Composite BOI for the non-hydrocarbon sector registers a 14 points slide, partly due to the seasonal downturn during summer and partly on the back of expectations skewed towards a trend of stability,” the report said. The SME segment holds a slightly stronger outlook with a Composite BOI of 38 compared to large company BOI at 34. It further said 50 percent of non-hydrocarbon sector firms and 55 percent of oil & gas companies do not expect any obstacles to hamper business operations during Q3; Competition and government policies are key concerns for the non-hydrocarbon sector, while shortage of skilled labor and government policies are leading challenges for oil and gas firms. Despite the investment outlook marginally improves for the hydrocarbon sector but inches lower for the non-hydrocarbon segment. Even the non-hydrocarbon sector is not spared, the report noted, with sectoral firms indicating a softening in the business environment outlook for Q3; 50 percent of the respondents (compared to 62 percent in Q2) do not anticipate any negative factor to affect business operations this quarter. Competition, the impact of government policies & fees and the lack of skilled labor as cited by 16 percent, 15 percent and 8 percent of the firms respectively are the primary concerns of the non-hydrocarbon sector respondents in Q3. Some 55 percent of the hydrocarbon businesses do not anticipate any negative factor to affect business operations in Q2 2014, compared to 53 percent in the previous quarter. Lack of availability of skilled labor as a result of the country’s labor rules and government policies & fees are the top most concerns affecting businesses this quarter cited by 14 percent of the respondents for each factor. Forty four percent of the nonhydrocarbon sector businesses plan to invest in business expansion in Q3 compared to 47 percent in the previous quarter. Construction sector firms are the most optimistic in their investment outlook with 51 percent planning to invest in business expansions.Fifty eight percent of the hydrocarbon businesses plan to invest in expansionary activities, compared to 55 percent in Q2. Moreover, the Composite BOI for the finance, real estate & business services sector is at 5-year low of 30, losing 18 points q-o-q and 16 points y-o-y. The index has been weighed down by lower optimism on all five parameters. The Composite BOI for the Finance sub sector has declined by 28 points from the previous quarter and is now at a seven quarter low of 24. The fall is due to a steep drop in the BOIs for all parameters The Composite BOI for the Real Estate sub-sector sector has once again moderated; the index is lower by 23 points from 38 in Q2 to 15 in Q3. A decline in all five parameters has weighed down on the Composite index. The Business Services sub-sector has also recorded a weakening in outlook, with the BOI at 36 in Q3 compared to 51 in Q2, as all parameters weighed down. Source: Saudi Gazette
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#1437
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Mobily on track to become ICT leader
MOBILY’s plan to transform from just a telecommunication provider to a the leading Information, Communication and Technology (ICT) services provider by 2020, necessitated the building of world class data centers across Saudi Arabia. This major milestone is considered a fundamental foundation in the transformation journey towards the full ICT. Engineer Ismail Al-Ghamdi, Acting Chief Business Officer, said Mobily owns currently 42 data centers in different parts of Saudi Arabia, four of them are certified by Uptime Institute, which make them the most reliable data centers that provide Mobily’s customers with the highest standards of security and reliability. "Those data centers represent the infrastructure capable to provide ICT solutions and they also represent the starting point toward providing various innovative solutions for public and private sectors in the Kingdom, besides providing hosting and managed services, including cloud computing and information technology solutions,” he added. Mobily is forging strategic partnerships with major international companies providing new technological solutions in order to become a leading provider of information and communications technology services. — SG Source: Saudi Gazette
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#1438
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China becomes Dubai’s top trade partner in H1
DUBAI – Dubai’s foreign trade in the first six months of 2014 fell 3.7 percent to AED654 billion from AED679 billion in the same last year. The emirate’s foreign trade in 2013 totaled AED1.392 trillion. Imports during the first half of the year reached AED408 billion, while exports hit AED59 billion and re-exports at AED187 billion, Dubai Customs said in a statement on Wednesday. China was Dubai’s top foreign trade partner during the first half of the year, with a trade value of AED80.5 billion, followed by India with AED53 billion, the US with AED41 billion, and Saudi Arabia with AED27 billion. Phones and PCs accounted for 17 percent of Dubai’s total foreign trade in the first half of the year. “The commodities and markets’ diversity currently seen in Dubai’s foreign trade is attributed to the strategic initiatives launched by Sheikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to shift to a smart economy that puts Dubai on the fast track towards becoming the world’s smartest city,” said Sultan Ahmed Bin Sulayem, Chairman of Ports, Customs and Free Zone Corporation. Phone trade amounted to AED85 billion, up 11 percent compared to the AED76 billion in the first six months of 2013. China was the top importer of phones to Dubai, with a value of AED27 billion, while Saudi Arabia was the main market for phone re-exports, with a value of AED8.5 billion. Computers trade grew by 9 percent from AED24.6 billion to AED27 billion during the first half of this year. Jewelry trade was valued at AED29.5 billion during the first half of 2014, up 12 percent from AED26.4 during the same time a year ago. Automotive foreign trade climbed 31 percent from AED24.3 billion to AED32 billion in the period under review. Helicopters and lightweight aircraft climbed 14 percent to AED9.4 billion against AED8.3 billion. Petroleum oils’ trade grew by 31 percent from AED15.6 billion to AED20.5 billion. Lightweight ships and floating equipment trade grew more than 125 percent to AED3 billion compared to AED1.35 billion in the first half of 2013. Also, the air conditioning’s business grew by 53 percent to AED3.6 billion against AED2.4 billion. — SG
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#1439
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Jazan to Riyadh: Is relocation key to economic prosperity?
Mufrih Yahya is from Jazan but for two years, he worked nearly 700 km away in the Southern Province of Sharura in Najran before moving to the capital Riyadh recently. Yahya’s story of relocating to another town is one that is shared by scores of young Saudis, who are abandoning their rural hometowns and moving to the Kingdom’s major cities in search of better employment opportunities and lifestyle changes, Al-Riyadh daily reported. “When I got my first job in Najran, I would drive over 700 km every two weeks to see my family. This went on for about two years but I found it really hard to live and work in an area that lacked many of the basic resources I am used to having. Moving to a big city like Riyadh changed all of that and I not only enjoy my time here but was also able to complete my higher education,” he said. “If I would have stayed in Najran, I would have wasted my time missing my family and lamenting the things I didn’t have,” he added. While many young Saudi men complain about the lack of job opportunities in their cities, part of the problem is that few dare to apply for jobs outside of their regions. Yahya said it is important for people to step outside their comfort zones and experience something new and different. “In Riyadh, I joined the media industry and finally found the path to success. My advice to everyone is to follow wherever life takes them because they may find success in places they never expected.” According to Mohammad Al-Malki, young men who are just beginning their careers are often reluctant to leave the stability of living in their hometown for a new region because they are not yet able to provide for themselves financially. Some still depend on their parents and are not confident they can survive living on their own. “Venturing out is actually a positive thing that enables people to discover new capabilities and talents about themselves, adding to their personal development. It also forces one to truly grow and learn from their mistakes,” he said. Echoing the same view was Saud Al-Qarni who spent two fruitless years searching for a job in his home town before he finally realized he had to widen his scope to have a fair chance at landing a job. Al-Qarni now believes life is all about taking advantage of opportunities that present themselves. “Youth should be ready for all opportunities and circumstances whether they are in their home town or somewhere else. One must face life with an open spirit. Most military, education and private sector jobs usually require the employee to move around but one can always follow the path of entrepreneurship and pick the city they want to be in,” he said. Consultant Saleh Al-Dowsari said getting accustomed to a new job requires patience and time and the same is true for moving to a new city. But if people can get over the initial hardships, moving to a big city will open all kinds of opportunities. “The reasons why many young people will not seek a job far from their home town are many — they do not want to leave their family or they are afraid of adjusting to a new lifestyle and failure in general. Big opportunities often come to daring people who are more focused on achieving financial stability so they can start their own families in the near future,” he said. Economist Waleed Al-Nahid said in order to encourage youth to move, jobs that require people to leave their hometowns should offer incentives in the form of monetary compensation. He also said regional governments should do more to retain their youth. “The youth should knock on every door and choose their jobs wisely. Success and prosperity does not only lie in governmental jobs. The economic sector is in need of people. Moreover, industrial cities, where most of the jobs are, should be planned and dispersed more widely in terms of geographical location. That way, more people will have better access to jobs wanted by the people and needed by the country. “The population should be dispersed more equally rather than having a cluster of people in a few marked cities while other areas of the Kingdom are ignored.” Source: SG
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#1440
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Saudi cenbank says may cap consumer lending, limits fees
Saudi Arabia's central bank has published new consumer lending regulations which give it the power to cap retail lending at individual banks and limit the fees that banks can charge. The rules could dent profit growth at banks, especially those that rely heavily on retail activity, as the kingdom prepares to open its stock market to direct foreign investment early next year. Saudi banks' combined consumer loan book stood at SAR333.8 billion ($89 billion) at the end of March, up 8.6 percent year-on-year. That was 28.7 percent of all their lending. The regulations, published on the Saudi Arabian Monetary Agency's (SAMA) website, state: "SAMA may, at its discretion, impose a restriction on a creditor under which its consumer financing portfolio may not exceed a specified percentage of its total financing portfolio." They also state that "all fees, costs and administrative services charges" collected by banks must not exceed either 1 percent of the financing amount or 5,000 riyals, whichever is lower. Previously, processing fees were fixed amounts, regardless of the size of the loan, and varied from 1,500 to 2,500 riyals per loan application, according to brokerage EFG Hermes. "The imposition of caps on fees should substantially dent the retail loan income for banks, in our view, with the impact likely to be felt more by banks that have significant revenue contribution from retail banking business," it said on Monday. "While the impact of lower retail banking fee income should be felt across all banks, we estimate that the Islamic banks - Al Rajhi, Aljazira - and NCB <IPO-NACO.SE>, the largest retail banking player amongst conventional banks, should see the biggest negative impact on their fee income growth prospects." EFG Hermes said the central bank was likely to use the consumer lending cap after closely monitoring the risk management capabilities of individual banks. The Saudi central bank has a reputation as a conservative and cautious regulator, and has not hesitated in the past to encourage local banks to increase bad loan provisions at times of rapid loan growth. Source: Reuters
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