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Saudi Government Considers Establishing Comprehensive Economic Platform for Business Sector

The Saudi Business Center (Asharq Al-Awsat)
The Saudi Business Center (Asharq Al-Awsat)
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Saudi Government Considers Establishing Comprehensive Economic Platform for Business Sector

The Saudi Business Center (Asharq Al-Awsat)
The Saudi Business Center (Asharq Al-Awsat)

The Saudi government has instructed the Saudi Business Center to collaborate with the Ministries of Commerce and Investment and the Saudi Authority for Intellectual Property to explore the potential for establishing a unified economic platform to serve all business sectors in the Kingdom.
This initiative aligns with the center's mandate, which includes streamlining business operations such as launching, managing, and closing businesses while providing relevant services according to international best practices.
The Saudi Business Center is focused on creating an environment that attracts businesses and boosts competitiveness, investment, and growth. It aims to position Saudi Arabia among the top ten countries globally in terms of quality, efficiency, and ease of government services provided to the business sector.
The Cabinet has recently approved the Commercial Register System, which consists of 29 articles and aims to simplify business procedures, ensure the accuracy of data, and make it accessible for easy reference. Key improvements include establishing a central electronic database for trader information and outlining clear registration procedures.
Businesses are given a five-year period to rectify existing branch records. This can be done by transferring the branch record to another party as a primary record, converting it into a new company, or canceling the branch record and transferring its assets to the main register.
Moreover, the system mandates that businesses open bank accounts linked to their operations, enhancing trust and transparency in their transactions. It also removes the requirement to renew the commercial register and instead introduces an annual electronic confirmation of the register's data. Failure to comply within three months results in suspension, and after a year of suspension, the register will be automatically canceled.
The system also includes alternative measures for handling violations, such as issuing warnings and requiring businesses to correct any infractions. These reforms are expected to streamline business operations and enhance the ease of doing business in Saudi Arabia.

 

 

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Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations
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Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Turkish annual inflation fell to 49.38% in September while the monthly rate was much higher than expected at nearly 3%, setting the stage for later than expected interest rate cuts by the central bank.

At 50%, the central bank's policy rate is now higher than the annual consumer price index (CPI) for the first time since 2021, marking a milestone in an aggressive tightening cycle meant to correct years of easy money and soaring prices.

But after prices came in higher than expected last month, boosted in part by education-related costs, some analysts said the bank was unlikely to be able to ease policy until December at the earliest and possibly not until next year.

The "data makes an interest rate cut this year look very unlikely to us," said Capital Economics in a note.

Month-on-month inflation was 2.97%, according to the Turkish Statistical Institute, above a Reuters poll forecast of 2.2%. Annual CPI was also higher than the poll forecast of 48.3%.

In August, monthly CPI was 2.47%, with the annual rate at 51.97%. The central bank is closely watching the monthly rate for signals of when to begin an easing cycle, though it has only dipped below 2% once this year, in June.

Last month, a Reuters poll showed a growing minority of analysts expecting a first cut next year, with the consensus settled around November and expectations of at least 20 points of easing by the end of 2025.

But Haluk Burumcekci, founding partner at Burumcekci Consulting, said the September data did not signal an imminent cut. Even if October inflation is in line with the central bank's guidance, he said, "it may not be sufficient" for a November cut.

-TIGHT POLICY

The domestic producer price index was up 1.37% month-on-month in September for an annual rise of 33.09%, the data showed.

The lira was slightly firmer at 34.18 against the dollar.

Annual inflation in September was driven by a 97.9% rise in housing prices, with education prices up 93.59%. The key food and non-alcoholic drinks sector prices were up 43.72%, below the overall level.

Last month the central bank held rates steady at 50% for a sixth straight month, saying it remained highly attentive to inflation risks. But it removed a reference to potential tightening, seen as a first signal that easing would eventually come.

The bank, which has hiked rates by 4,150 basis points since June last year, sees inflation falling to 38% at the end of this year and 14% next. In the medium term programme, the government sees end-2024 inflation of 41.5%.