Saudi Govt. to Pay Private Sector its Dues in 60 Days

Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. (Reuters)
Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. (Reuters)
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Saudi Govt. to Pay Private Sector its Dues in 60 Days

Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. (Reuters)
Cars drive past the King Abdullah Financial District in Riyadh, Saudi Arabia December 18, 2018. (Reuters)

The Saudi Ministry of Finance confirmed that the government remains committed to paying all the contracts signed with the private sector within a period of 60 days.

The move aims to spur private sector investment in the local domestic product.

The ministry said, 99 percent of submitted payment orders received by the ministry have been completed within the previously announced 60 days. Of those who have been paid, 97 percent were completed within 30 days.

The remaining less than 1 percent were not paid due to court orders.

There is a small percentage of disputed amounts claimed by certain vendors and contractors, which are subject to an agreed dispute resolution mechanism as per the contracts.

These developments coincide with a huge rise in spending in line with Saudi Vision 2030 and related national programs.

The Saudi government had approved the largest budget in the Kingdom’s history with estimated spending at SAR1,106 billion (USD295 billion), an increase of 7 percent compared to the end of the fiscal year 2018.

Revenues are estimated at SAR975 billion (USD260 billion), a rise of 9 percent compared to the same period.



Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Jumps, on Track for Best Week in Over a Year on Safe-haven Demand

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices rose over 1% to hit a two-week peak on Friday, heading for the best weekly performance in more than a year, buoyed by safe-haven demand as Russia-Ukraine tensions intensified.

Spot gold jumped 1.3% to $2,703.05 per ounce as of 1245 GMT, hitting its highest since Nov. 8. US gold futures gained 1.1% to $2,705.30.

Bullion rose despite the US dollar hitting a 13-month high, while bitcoin hit a record peak and neared the $100,000 level.

"With both gold and USD (US dollar) rising, it seems that safe-haven demand is lifting both assets," said UBS analyst Giovanni Staunovo.

Ukraine's military said its drones struck four oil refineries, radar stations and other military installations in Russia, Reuters reported.

Gold has gained over 5% so far this week, its best weekly performance since October 2023. Prices have gained around $173 after slipping to a two-month low last week.

"We understand that the price setback has been used by 'Western world' investors under-allocated to gold to build exposure considering the geopolitical risks that are still around. So we continue to expect gold to rise further over the coming months," Staunovo said.

Bullion tends to shine during geopolitical tensions, economic risks, and a low interest rate environment. Markets are pricing in a 59.4% chance of a 25-basis-points cut at the Fed's December meeting, per the CME Fedwatch tool.

However, "if Fed skips or pauses its rate cut in December, that will be negative for gold prices and we could see some pullback," said Soni Kumari, a commodity strategist at ANZ.

The Chicago Federal Reserve president reiterated his support for further US interest rate cuts on Thursday.

On Friday, spot silver rose 1.8% to $31.34 per ounce, platinum eased 0.1% to $960.13 and palladium fell 0.6% to $1,023.55. All three metals were on track for a weekly rise.