عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia: SIDF Allocates $3.6 Bn to Develop Industrial Sector

During SIDF’s ceremony “Empowering the Private Sector” (Yazid al-Samrani)
During SIDF’s ceremony “Empowering the Private Sector” (Yazid al-Samrani)
TT
TT

Saudi Arabia: SIDF Allocates $3.6 Bn to Develop Industrial Sector

During SIDF’s ceremony “Empowering the Private Sector” (Yazid al-Samrani)
During SIDF’s ceremony “Empowering the Private Sector” (Yazid al-Samrani)

Saudi Industrial Development Fund (SIDF) unveiled a new set of financial services and products that will enable the Saudi private sector to play its role in industrial development and logistics.

SIDF launched the new financial services and products under the slogan “Empowering the Private Sector” at the presence of a number of senior officials in government agencies and industry leaders from the private sector.

During the ceremony, it was revealed that $2.6 billion had been used to boost the industrial sector out of $3.6 billion allocated for 2019.

Minister of Industry and Mineral Resources, and SIDF Chairman Bandar al-Khorayef announced the amendment of the Fund's Articles, noting that this will enable it to expand its financing activity to include a number of promising new sectors.

In the past 20 years, the Fund approved 2,186 loans, with a total value of over $3.7 billion, while the proportion of small and medium-sized enterprises (SMEs) reached 81 percent of the total number of loans approved.

The total number of direct jobs provided by projects funded by the SIDF in the same period was more than 187,000 jobs, and the value of the contribution of projects funded by the Fund in Saudi Arabia’s industrial GDP reached $50 billion, said Khorayef.

The Minister added that the new financing products launched by the SIDF will assist the ministry in supporting the industrial and mining sectors.

Speaking on the sidelines of the ceremony, Khorayef indicated that the expansion of acquisitions to include new companies comes from new products, noting that for the first time, Saudi companies will be able to acquire companies characterized by creativity and research and development of new products to bring to the Saudi market.

The Minister said the industry and logistics development program is the largest of Vision 2030's programs.

Empowering its subsidiaries through the provision of financing instruments is consistent with the new system, which allows the Fund to be innovative without any limitations on new products.

Regarding National Industrial Development and Logistics Vision Realization Program (NIDLP), Khorayef said that the program targets $453.3 billion, adding that all programs will be constantly revised, considering the Vision has been set with certain data, especially as the economy changes.

For his part, SIDF CEO Ibrahim Saad al-Mojel announced the new package of financial services and products, which will help meet the needs and support the industrial sector.

Mojel said that the Fund has redesigned its internal procedures to reduce the processing time of existing and new loan applications to an average of 4 to 5 months, while maintaining the quality of provided studies and consultations.

Most Viewed

 
 
Business

Dollar Steadies ahead of Trump Inauguration

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
TT
TT

Dollar Steadies ahead of Trump Inauguration

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The US dollar steadied on Thursday despite the sharp fall in US bond yields after Wednesday’s inflation data as market focus shifted to Donald Trump’s presidential inauguration next week and possible inflationary impact of his policies.

Meanwhile the yen rose against the dollar and the euro as investors expected the Bank of Japan to hike rates next week.

The US dollar index - a measure of the value of the greenback relative to a basket of foreign currencies - was up 0.1% at 109.12.

"Markets are cautious before the inauguration because there is still policy uncertainty," said Paul Mackel, global head of foreign exchange research at HSBC.

"If the risk of US tariffs begins to materialize, the dollar will get another lift," he added, Reuters reported.

The highlight of the day should be the nomination hearing of Trump's choice of Scott Bessent to head the Treasury Department.

Bessent, who will face questioning before the US Senate Finance Committee, is expected to keep a leash on US deficits and to use tariffs as a negotiating tool, mitigating the expected inflationary impact of economic policies expected from the Trump administration.

The US inflation curve "has a well-identifiable 40 bps 'hump' over the next 12 months, which is near-identical to the estimated impact of a 5% universal and 20% China tariff starting as soon as Trump gets in office," said George Saravelos, head of forex research at Deutsche Bank.

"The market is pricing quick but moderate tariffs," he added. "We see risks of slower but bigger tariffs."

Traders who have been growing more worried about inflation responded with relief to Wednesday's US data, buying stocks and sending benchmark 10-year Treasury yields down more than 13 basis points. The currency reaction was more muted.

Analysts flagged that the US consumer price data was better than expected, but still showing inflation above Federal Reserve targets. The figures provided the US bond market with an excuse to do some downside testing for yields, but such a move is unlikely to go far.

"We still think that it will be easy for the Fed to remain on hold for now and wait for more data and fiscal policy clarity," said Allison Boxer, an economist at PIMCO, adding that US data did not change their forecasts for core inflation.

"We expect this to be the message (Fed) Chair (Jerome) Powell aims to communicate at the January meeting."

There was little direct reaction in foreign exchange markets to the ceasefire deal in Gaza, though the Israeli shekel did touch a one-month high on Wednesday.

The yen rose 0.46% against the dollar, after hitting 155.21, its lowest level since Dec. 19. It was up 0.51% against the euro at 160.19.

Recent remarks from Bank of Japan Governor Kazuo Ueda and his deputy Ryozo Himino have made clear that a hike will at least be discussed at next week's policy meeting and markets see about a 79% chance of a 25 basis point increase, while pricing 50 bps of rate hikes by year-end.

"Yen strengthened on expectations for a rate hike, but now the focus is on what BOJ officials will say about the monetary policy outlook," HSBC's Mackel argued.

"They could signal a more gradual path for the future, which could limit yen gains."

Japan's annual wholesale inflation held steady at 3.8% in December on stubbornly high food costs, data showed on Thursday.

"Expectations of a BOJ hike and perhaps fears of more forex intervention in the 158/160 area have helped the yen outperform," said Chris Turner, head of forex strategy at ING.

"We expect that to continue into next week's BOJ meeting. However, dips may exhaust in the 153/155 area," he said.

The euro was up 0.05% at $1.0294.

Sterling dropped sharply against the yen and also weakened versus the dollar and the euro on Thursday as investors focused on monetary policy divergence after last week's selloff in gilts and the pound.

China's yuan, seen on the front lines of tariff risk, was pinned near the weak end of its trading band at 7.3468 throughout the Asia session.