عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Shareholder Firms Capital Jumps 49% in Saudi Arabia

A Saudi jeweller counts Saudi Riyal banknotes money after selling gold to a customer in a jewellery shop at the surrounding area of the Grand Mosque during the annual haj pilgrimage in the holy city of Mecca. Reuters.
A Saudi jeweller counts Saudi Riyal banknotes money after selling gold to a customer in a jewellery shop at the surrounding area of the Grand Mosque during the annual haj pilgrimage in the holy city of Mecca. Reuters.
TT
TT

Shareholder Firms Capital Jumps 49% in Saudi Arabia

A Saudi jeweller counts Saudi Riyal banknotes money after selling gold to a customer in a jewellery shop at the surrounding area of the Grand Mosque during the annual haj pilgrimage in the holy city of Mecca. Reuters.
A Saudi jeweller counts Saudi Riyal banknotes money after selling gold to a customer in a jewellery shop at the surrounding area of the Grand Mosque during the annual haj pilgrimage in the holy city of Mecca. Reuters.

The Saudi Ministry of Commerce and Investment announced on Thursday the growth of shareholder firms’ capital up to 49 percent in 1438 A.H., compared to last year. This indicates that the Saudi economic reforms are capable of creating additional investment opportunities for private sector firms.

In this context, the ministry announced on Thursday that around 4545 was the record of exporting firms to the kingdom in 1438 A.H., an increase of approximately nine percent in comparison to 1437 A.H.

The ministry’s statistics showed that the capital of established firms and others that became shareholder firms in 1438 A.H. exceeded SAR32 billion (USD6.1 billion), therefore capitals in shareholder firms grew 49 percent in comparison to 1437 A.H.

Notably, the number of operating firms in the kingdom surpassed 66,000, at a time when the ministry proceeds its pursuit to enhance the business environment, empower facilities, provide investment environment and develop advanced projects to serve the national economy, within the National Transformation Program 2020.

The kingdom achieved an unprecedented headway in indicators of ease of Doing Business in 2018, after conducting some reforms and taking procedures that contributed in enhancing the business and investment environment and consolidating investors’ confidence.

A report for the World Bank classified the kingdom among the top 20 reformative states in the world and ranked it second as to the high-income. In the report, the kingdom also came second among the G20s in terms of implementing reforms and enhancing business climate.

Saudi Arabia’s progress in ease of Doing Business for 2018 excelled in six of 10 axes: protecting minority investors, enforcing contracts, starting a business, cross-border trade, registering property and settling bankruptcy, the report added.

The Kingdom’s strong reforms have led to progress in protecting the minority shareholders, ranking 10th in the world, which is a strong signal to those interested in investing in the Kingdom, according to the report.

In the beginning of November, Fitch Ratings affirmed the Saudi rating at A+ with a stable outlook, and other similar international rating agencies took alike steps.

Most Viewed

 
 
Business

Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
TT
TT

Ukraine Threatens to Halt Transit of Russian Oil to Europe

A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo
A view of storage tanks and pipelines at the Mero central oil tank farm, which moves crude through the Druzhba oil pipeline, near Nelahozeves, Czech Republic, August 10, 2022. REUTERS/David W Cerny/File Photo

A top aide to Ukrainian President Volodymyr Zelensky on Friday said Kyiv would halt the transit of Russian oil across its territory at the end of the year, when the current contract expires and is not renewed.

Mykhailo Podolyak said in an interview with the Novini.Live broadcaster that current transit contracts for Russian supplies that run through the end of the year will not be renewed.

“There is no doubt that it will all end on January 1, 2025,” he said.

Kiev says it is prepared to transport gas from the Central Asian countries or Azerbaijan to Europe, but not from Russia, as it is crucial for Ukraine to deprive Russia of its sources of income from the sale of raw materials after it attacked its neighbor well over two years ago.

The contract for the transit of Russian gas through Ukraine to Europe between the state-owned companies Gazprom and Naftogaz ends on December 31.

Despite the launch of Russia's full-scale invasion of Ukraine in February 2022, the Ukrainians have fulfilled the contract terms - in part at the insistence of its European neighbors, especially Hungary.

But the leadership in Kiev has repeatedly made it clear that it wants the shipments to end.

Meanwhile, the Czech Republic energy security envoy Vaclav Bartuska said on Friday that any potential halt in oil supplies via the Druzhba pipeline through Ukraine from Russia from next year would not be a problem for the country.

Responding to a Reuters question – on comments by Ukrainian presidential aide Mykhailo Podolyak that flows of Russian oil may stop from January – Bartuska said Ukraine had also in the past warned of a potential halt.

“This is not the first time, this time maybe they mean it seriously – we shall see,” Bartuska said in a text message. “For the Czech Republic, it is not a problem.”

To end partial dependency on the Druzhba pipeline, Czech state-owned pipeline operator MERO has been investing in raising the capacity of the TAL pipeline from Italy to Germany, which connects to the IKL pipeline supplying the Czech Republic.

From next year, the increased capacity would be sufficient for the total needs of the country’s two refineries, owned by Poland’s Orlen, of up to 8 million tons of crude per year.

MERO has said it planned to achieve the country’s independence from Russian oil from the start of 2025, although the TAL upgrade would be finished by June 2025.

On Friday, oil prices stabilized, heading for a weekly increase, as disruptions in Libyan production and Iraq’s plans to curb output raised concerns about supply.

Meanwhile, data showing that the US economy grew faster than initially estimated eased recession fears.

However, signs of weakening demand, particularly in China, capped gains.

Brent crude futures for October delivery, which expire on Friday, fell by 7 cents, or 0.09%, to $79.87 per barrel. The more actively traded November contract rose 5 cents, or 0.06%, to $78.87.

US West Texas Intermediate (WTI) crude futures added 6 cents, or 0.08%, to $75.97 per barrel.

The day before, both benchmarks had risen by more than $1, and so far this week, they have gained 1.1% and 1.6%, respectively.

Additionally, a drop in Libyan exports and the prospect of lower Iraqi crude production in September are expected to help keep the oil market undersupplied.

Over half of Libya’s oil production, around 700,000 barrels per day (bpd), was halted on Thursday, and exports were suspended at several ports due to a standoff between rival political factions.

Elsewhere, Iraq plans to reduce oil output in September as part of a plan to compensate for producing over the quota agreed with the Organization of the Petroleum Exporting Countries and its allies, a source with direct knowledge of the matter told Reuters on Thursday.

Iraq, which produced 4.25 million bpd in July, will cut output to between 3.85 million and 3.9 million bpd next month, the source said.