عربي English Türkçe اردو فارسى
Logo
Latest News
Business

‘Uber Taxi’ Launched in Jordan

‘Uber Taxi’ Launched in Jordan
TT
TT

‘Uber Taxi’ Launched in Jordan

‘Uber Taxi’ Launched in Jordan

Uber Jordan today has announced the launch of taxi-hailing service ‘Uber Taxi’ in the country. Jordan is the first country in the Middle East to get Uber Taxi. Careem that was recently acquired by Uber recently, however, has taxi-hailing services in many of its markets in the region including Jordan.

Uber in a statement said that the launch of Uber Taxi in Jordan is a testament to Uber’s support of the public transport sector in the nation, as well as its efforts to make transportation even more accessible to residents and visitors alike.

The statement also noted that Uber Taxi has expanded company’s network of vehicles in the country and will provide new economic opportunities for taxi drivers who will have access to more trips.

The announcement comes almost two weeks after Uber’s acquisition of its rival Careem but apparently the launch has nothing to do with Careem already having the option to hail taxis in Jordan as the two companies are not expected to have any integration until the deal is closed.

The base fare of UberX, Uber’s low-cost car type and Uber Taxi is same, JOD 0.5 ($0.71) but the taxi is relatively cheaper than Uber X as the per KM charges for Uber Taxi are set at JOD 0.130 compared to Uber X’s JOD 0.140 and per minute charges on Uber Taxi are JOD 0.050 whereas Uber X charges JOD 0.060.

Pierre-Dimitri Gore-Coty, Vice President of Uber operations in Europe, Middle East & Africa, commenting on the launch, said, “I am honored to announce the arrival of Uber Taxi in Jordan, and we are excited to be tapping into local modes of transport so that more riders and drivers can benefit from our technology. Jordan is a fast growing market, especially in the smart transport services sector, and through this launch, we aim to move towards our goal of becoming a multi-modality platform,”

“Furthermore, we hope that this will galvanize the development of transportation services in Jordan, and provide taxi drivers new opportunities to reap the economic benefits by using our technology to maximize their earning potential through the option of pairing with the closest Uber Taxi rider in addition to traditional street hailing,” he added.

Uber Taxi can be accessed through the regular Uber app as another car option by the users in Jordan. The company already has on-boarded hundreds of taxi drivers who are ready to start accepting the trips.

The taxi drivers, per the statement, will receive the same privileges provided to all Uber drivers and will be charged a reduced service fee.

Most Viewed

 
 
Business

Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
TT
TT

Saudi Arabia Raises $12 Billion in International Bonds Amid Strong Demand

Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).
Skyscrapers are seen in King Abdullah Financial District in the Saudi capital, Riyadh. (Reuters).

Saudi Arabia has raised $12 billion from global debt markets in its first international bond issuance of the year, attracting bids worth nearly $37 billion. This demonstrates strong investor appetite for Saudi debt instruments.

The issuance comes just two days after the approval of the 2025 annual borrowing plan by Minister of Finance Mohammed Al-Jadaan. The plan estimates financing needs for the fiscal year at SAR 139 billion ($37 billion). The funds will be used to cover the projected SAR 101 billion ($26.8 billion) budget deficit for 2025, as well as repay SAR 38 billion ($10 billion) in principal debt obligations due this year.

The National Debt Management Center (NDMC) announced on Tuesday that the issuance includes three tranches: $5 billion in three-year bonds, $3 billion in six-year bonds, and $4 billion in ten-year bonds. Total demand for the bonds reached $37 billion, exceeding the issuance size by three times and reflecting robust investor interest.

The NDMC emphasized that this issuance aligns with its strategy to broaden the investor base and efficiently meet Saudi Arabia’s financing needs in global debt markets.

According to IFR, a fixed-income news service, the initial price guidance for the three-year bonds was set at 120 basis points above US Treasury yields. The six-year and ten-year bonds were priced at 130 and 140 basis points above the same benchmark, respectively.

Strong demand allowed Saudi Arabia to lower yields on the shorter-term bonds, further demonstrating investor confidence. Economists noted that the pricing above US Treasuries is attractive in the current market, showcasing trust in Saudi Arabia’s economic stability and financial strategies.

International confidence

Economic experts view this successful bond issuance as a testament to international confidence in Saudi Arabia’s robust economy and financial reforms. Dr. Mohammed Al-Qahtani, an economics professor at King Faisal University, said the move underscores Saudi Arabia’s commitment to diversifying financing tools both domestically and internationally. He added that the funds would support Vision 2030 projects, reduce pressure on domestic resources, and attract strong international investor interest.

The issuance strengthens Saudi Arabia’s ability to meet financial needs, expand its investor base, and establish a global financing network, he said, noting that it also facilitates entry into new markets, enabling the Kingdom to accelerate infrastructure projects and capital expenditures.

Dr. Ihsan Buhulaiga, founder of Joatha Business Development Consultants, described the 2025 budget as expansionary, aimed at meeting the financing needs of economic diversification programs. He stressed that the budget deficit is an “optional” one, reflecting a deliberate choice to prioritize Vision 2030 initiatives over immediate fiscal balance.

Buhulaiga explained that the Kingdom’s approach balances two options: limiting spending to available revenues, which would avoid deficits but delay Vision 2030 initiatives, or borrowing strategically to fund Vision 2030 goals. He said that the annual budget is just a component of the larger vision, which requires sustained funding until 2030.

He continued that Saudi Arabia’s fiscal space and creditworthiness allow it to borrow internationally at competitive rates, explaining that this flexibility ensures financial sustainability without compromising stability, even during challenges like the COVID-19 pandemic.

Saudi Arabia’s debt portfolio remains balanced, with two-thirds of its debt domestic and one-third external. As of Q3 2024, public debt stood at approximately SAR 1.2 trillion, below the 30% GDP ceiling. According to the Ministry of Finance, the budget deficit is expected to persist through 2027 but remain below 3% of GDP.

Buhulaiga highlighted the importance of capital expenditure, which reached SAR 186 billion in 2023 and is projected to rise to SAR 198 billion in 2024, a 6.5% increase.

He emphasized the government’s pivotal role in economic diversification, supported by investments from the Public Investment Fund (PIF), the National Development Fund, and its subsidiaries, including the Infrastructure Fund.

The PIF recently announced a $7 billion Murabaha credit facility, facilitated by Citigroup, Goldman Sachs International, and JPMorgan. Meanwhile, the NDMC arranged a $2.5 billion revolving credit facility earlier in January, compliant with Islamic principles, to address budgetary needs.

In November, Moody’s upgraded Saudi Arabia’s credit rating to Aa3, aligning with Fitch’s A+ rating, both with a stable outlook. S&P Global assigns the Kingdom an AA-1 rating with a positive outlook, reflecting a high ability to meet financial obligations with low credit risk.

The IMF estimates Saudi Arabia’s public debt-to-GDP ratio at 26.2% in 2024, describing it as low and sustainable. This is projected to rise to 35% by 2029 as foreign borrowing continues to play a key role in financing deficits.