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SAMA: E-Payments Exceed Target

Saudi Arabian Monetary Authority (SAMA) logo
Saudi Arabian Monetary Authority (SAMA) logo
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SAMA: E-Payments Exceed Target

Saudi Arabian Monetary Authority (SAMA) logo
Saudi Arabian Monetary Authority (SAMA) logo

The Saudi Arabian Monetary Authority (SAMA) revealed that electronic payments for the retail sector amounted to more than 36 percent of all payments available, exceeding the target percentage of the Financial Sector Development Program.

SAMA indicated that the program, one of Vision 2030 programs, stipulates that the share of non-cash transactions should be increased by 28 percent by 2020.

This achievement is based on SAMA's strategy for payment systems and the Financial Sector Development Program, which aims to enhance electronic payment and reduce cash handling to reach 70 percent of total payments in the Kingdom by 2030, for its many positive effects.

These include providing customers with excellent experience in facilitating payment processes, reducing cash transaction costs on the local economy, enhancing transparency in transactions, and direct impact on the efficiency of the national economy.

The reduction of cash transactions is one of the most important strategic objectives that SAMA has been working on during the past period through the completion of several initiatives, projects and investments in the digital payments sector in line with the objectives of the Program.

E-payment methods varied, with the card payments making the largest share of approximately 31.3 percent, while other means varied between payments platform “SADAD”, remittances and others.

SAMA pointed out that the record growth rates witnessed in the electronic payments through the national payment system “Mada”, which recorded unprecedented spikes in the number and value of purchasing transactions in the past years.

The growth rate until the end of September 2019 was about 50 percent.

SAMA pointed out that the growth indicators in the point of sale service were also accompanied by a noticeable expansion in the number of devices and their base of spread which included various commercial sectors. The total number of devices exceeded more than 407 thousand devices by the end of September 2019 compared to 107 thousand devices by the end of 2013.

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Saudi Arabia Provides $500 Million in Financial Support to Yemen

Saudi Arabia Provides $500 Million in Financial Support to Yemen
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Saudi Arabia Provides $500 Million in Financial Support to Yemen

Saudi Arabia Provides $500 Million in Financial Support to Yemen

The Kingdom of Saudi Arabia has given new economic support to Yemen, worth $500 million, to strengthen the Yemeni government's budget and bolster the Central Bank of Yemen.
The Saudi support package consists of a $300 million deposit in the Central Bank of Yemen, to improve the economic and financial situation, and $200 million to deal with the Yemeni budget deficit, out of a total pledge of $1.2 billion.
According to SPA, the funding, through the Saudi Development and Reconstruction Program for Yemen (SDRPY), aims to enhance food security, support salaries and wages, cover operating expenses, and help the government implement its economic reform program.
It also seeks to help set the basis for economic, financial, and monetary stability in the Republic of Yemen, strengthen this country’s public finances, enhance the capacity of government institutions, and improve governance and transparency. It also aims to empower the private sector to drive sustainable economic growth and create job opportunities, ultimately placing the national economy on a more sustainable path and driving economic and social development.
Previous Saudi deposits positively impacted the foreign exchange reserves of the Central Bank of Yemen, reduced the exchange rates, and contributed to the growth of the GDP. They also helped lower fuel and diesel prices, as well as the cost of imported food commodities.
Together with previous assistance, including grants and deposits, this aid aims to buttress Yemen's economic stability.
Key contributions of Saudi support include covering imports of essential food commodities (wheat grains, wheat flour, rice, milk, cooking oil, and sugar), strengthening the Central Bank's foreign exchange reserves, stabilizing the local currency, and reducing fuel and diesel prices.
While Saudi grants have positively impacted economic and social development in Yemen, and supported the national economy, they also helped mitigate the economic deterioration by increasing the foreign exchange reserves and boosting confidence in the Central Bank of Yemen.
Moreover, these grants led to greater financial transfers and foreign aid, thus strengthening the balance of income and transfers in Yemen.
The grants effectively stimulated economic growth while lessening inflationary pressures. By enabling the government to cover salaries and wages, they significantly reduced the budget deficit, which, in turn, improved the financial stability of the country and lowered the government's reliance on borrowing to finance its expenditures.
The grants greatly helped improve the performance of critical sectors. In healthcare, it funded essential medicines for chronic diseases and cancer treatment. It also came to the help of education and other vital sectors, and covered the cost of petroleum derivatives for electricity generation.
The Kingdom also significantly contributed to Yemen's economic growth by providing grants for petroleum derivatives. These grants enabled 80 power generation stations to operate in all Yemeni governorates, thus stimulating the Yemeni economy and enhancing the efficiency of vital, productive and service sectors in Yemen.
Through SDRPY, the Kingdom has implemented 263 development projects and initiatives in various Yemeni governorates. These projects serve the Yemeni people in eight crucial sectors: education, health, water, energy, transportation, agriculture and fisheries, capacity building of the Yemeni government, and development programs.