Saudi Arabia Adopts New Regulations to Foster Competitive Insurance Entities

 The establishment of the Insurance Authority in Saudi Arabia aims to regulate the sector under a unified entity and enhance company competitiveness (Asharq Al-Awsat)
The establishment of the Insurance Authority in Saudi Arabia aims to regulate the sector under a unified entity and enhance company competitiveness (Asharq Al-Awsat)
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Saudi Arabia Adopts New Regulations to Foster Competitive Insurance Entities

 The establishment of the Insurance Authority in Saudi Arabia aims to regulate the sector under a unified entity and enhance company competitiveness (Asharq Al-Awsat)
The establishment of the Insurance Authority in Saudi Arabia aims to regulate the sector under a unified entity and enhance company competitiveness (Asharq Al-Awsat)

The Saudi Cabinet, chaired by Crown Prince Mohammed bin Salman, approved on Tuesday the establishment of the Insurance Authority. This move aims to foster robust and competitive insurance entities within the Kingdom.

Finance Minister Mohammed Al-Jadaan characterized this measure as pivotal within the developmental blueprint of the financial sector, a component of the Vision 2030 program designed to elevate the role of the insurance sector.

This initiative seeks to amplify its contribution to the economy, enhance job creation, and stimulate investment.

At the close of the previous year, Al-Jadaan revealed plans for the imminent establishment of an independent regulatory body for insurance. He emphasized the necessity for robust entities within the sector, capable of expanding both within and beyond the borders of the kingdom.

During that time, the minister declared his endorsement of merger activities among insurance companies within the sector.

He stressed the sector’s need for large entities and corporations that can meet Saudi Arabia’s aspirations in delivering innovative services.

The Governor of the Saudi Central Bank (SAMA), Ayman Al-Sayari, said setting up the insurance authority will boost the efficiency of the insurance sector and increase its contribution to the Kingdom's non-oil GDP.

The new independent entity will also help develop the insurance industry and create well-established insurance institutions capable of growth and competition to enhance the whole industry as well as the Kingdom’s economy.

In addition, the insurance authority will work to develop the insurance sector by providing the appropriate environment and ensuring that the interests of beneficiaries and policyholders are not affected, the governor added.

Experts, on their part, view the Cabinet’s decision as heralding a new qualitative phase for the insurance sector, one that aligns with ambitious objectives of a key pillar within the Financial Sector Development Program, an integral component of the Vision 2030 achievement.

Legal expert Fahad Al-Anzi told Asharq Al-Awsat that the presence of a unified regulatory body for insurance enhances sector performance, elevates the quality of insurance services, and safeguards the rights of policyholders.

Al-Anzi further emphasized that the establishment of this body will address the challenges facing the insurance market in the kingdom, guided by a unified vision and strategy set forth by the new entity. This approach ensures the integration of legislative, administrative, and financial solutions.



Trump Adds Lumber to List of Goods Facing Tariffs Over 'Next Month or Sooner'

FILE PHOTO: US President Donald Trump returns a salute as he steps from Air Force One to tour the Boeing South Carolina facility in North Charleston, South Carolina, US, February 17, 2017. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: US President Donald Trump returns a salute as he steps from Air Force One to tour the Boeing South Carolina facility in North Charleston, South Carolina, US, February 17, 2017. REUTERS/Kevin Lamarque/File Photo
TT
20

Trump Adds Lumber to List of Goods Facing Tariffs Over 'Next Month or Sooner'

FILE PHOTO: US President Donald Trump returns a salute as he steps from Air Force One to tour the Boeing South Carolina facility in North Charleston, South Carolina, US, February 17, 2017. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: US President Donald Trump returns a salute as he steps from Air Force One to tour the Boeing South Carolina facility in North Charleston, South Carolina, US, February 17, 2017. REUTERS/Kevin Lamarque/File Photo

US President Donald Trump said on Wednesday he will announce fresh tariffs over the next month or sooner, adding lumber and forest products to previously announced plans to impose duties on imported cars, semiconductors and pharmaceuticals.
"I'm going to be announcing tariffs on cars and semiconductors and chips and pharmaceuticals, drugs and pharmaceuticals and lumber, probably, and some other things over the next month or sooner," Trump said at a conference in Miami.
Speaking to reporters on Air Force One as he travelled back to Washington, Trump said he was thinking about a 25% tariff on lumber and forest products, to take effect around April 2, when a tariff on autos of around the same amount is expected, Reuters reported.
He said he expected tariffs to generate large revenues for the United States, but also offered countries a reprieve if they lowered or removed their own tariffs on US goods.
Trump on Tuesday said he also intends to impose similar duties on semiconductors and pharmaceuticals, the latest in a series of measures threatening to upend international trade.
Those tariffs would also start at "25% or higher", rising substantially over the course of a year. He did not provide a date for announcing those duties and said he wanted to provide some time for drug and chip makers to set up US factories so they can avoid tariffs.
Since returning to office four weeks ago, Trump has imposed an additional 10% tariff on all imports from China over China's failure to halt fentanyl trafficking. He also announced, and then delayed for a month, 25% tariffs on goods from Mexico and non-energy imports from Canada.
Last week, he unveiled plans to slap reciprocal tariffs on all countries that have tariffs on US goods or set up non-tariff barriers to limit US access to their markets.
EU trade chief Maros Sefcovic met with US counterparts - Commerce Secretary Howard Lutnick, Trump's nominee to be US Trade Representative Jamieson Greer and National Economic Council director Kevin Hassett - in Washington on Wednesday to discuss the various tariffs facing US trading partners.
Trump's threats have changed over time, leaving other nations and businesses unclear of what is to come next. Some economists and experts have warned Trump's sweeping tariffs will stoke inflation.