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167 Government Agencies Look Into Possibilities of Achieving Efficient Spending in Saudi Arabia

167 Government Agencies Look Into Possibilities of Achieving Efficient Spending in Saudi Arabia
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167 Government Agencies Look Into Possibilities of Achieving Efficient Spending in Saudi Arabia

167 Government Agencies Look Into Possibilities of Achieving Efficient Spending in Saudi Arabia

A number of Saudi government agencies have discussed the potential to achieve efficient spending and optimal business mechanisms in the country in accordance with the best local and international practices.

The Center of Spending Efficiency (CSE) held a workshop on Monday in the capital, Riyadh, entitled “Enabling spending efficiency teams in government agencies” to upgrade the government agencies’ capabilities to activate the mechanisms of achieving government spending efficiency.

This step is aimed at keeping pace with the government's aspirations for Saudi Arabia to become a successful model at the level of achieving financial and economic stability in line with the Kingdom's Vision 2030.

Attendees in the workshop, in which leaders and members of spending efficiency achievement teams in 167 government agencies have participated, amounted to 650. All have discussed the capabilities and optimal work mechanisms according to the best local and international practices in order to achieve spending efficiency.

In this context, Deputy Minister for Budget and Organizational Affairs in the Ministry of Finance Yaser al-Quhidan stressed the importance of cooperation among various government agencies to maximize impact against spending and the optimal orientation of government spending.

CEO of the CSE Eng. Abdul Razzag al-Aujan affirmed at the end of the workshop that the initiative is part of the Center’s 2020 plan to support government agencies in achieving spending efficiency targets towards sustainable spending in line with the Kingdom’s vision and aspirations.

On the other hand, the Kingdom’s Ministry of Finance announced that it has stopped receiving requests from investors on its local Sukuk issue for January under the Sukuk Issuance Program in Saudi Riyal.

It noted that the issuance value was determined with a total amount of SAR6.7 billion ($1.7 billion).

It explained that the issuances were divided into two sections: the first amounted to SAR715 million for Sukuk due in 2027, and the second would be six billion Saudi riyals, so its final size would be SAR7.8 billion for Sukuk due in 2030.

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Markets Wary as Trump Returns to the White House 

US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
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Markets Wary as Trump Returns to the White House 

US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)
US President Donald Trump reviews the troops in Emancipation Hall during inauguration ceremonies at the US Capitol in Washington, on January 20, 2025. (AFP)

Financial markets swayed and wobbled at the beginning of Donald Trump's second US presidency after he made a softer start on China than many had anticipated, but then signaled punitive tariffs on North American neighbors within hours.

A wave of relief that swept across markets - as his speech and slew of executive orders imposed no new trade levies - was stopped in its tracks when Trump told reporters in the White House's Oval Office that he was thinking about 25% tariffs on Mexico and Canada from Feb. 1.

The dollar, which had slipped, reversed course to hit five-year highs on its Canadian counterpart.

Hong Kong shares rose, battery stocks fell and the trading day was a neat reminder of both the rollercoaster that markets rode through Trump's first term and how, this time, investors feel more sanguine about the risks.

"Prepared remarks and what's off the cuff - both of them will move markets," said Tai Hui, chief market strategist in Asia at J.P. Morgan Asset Management, at a briefing in Singapore.

"Rather than basing all our investment decisions on what is announced...we just have to maybe take a step back and just absorb," he said.

"What was said on the campaign trail...and what is now being studied and researched and implemented there's still going to be a significant gap."

Trump had vowed to immediately impose steep tariffs of 10% to 20% on global imports into the US and 60% on goods from China, but a memo he issued after taking office only directed agencies to research and investigate the US trade deficits.

The dollar hit a five-year high of 1.452 Canadian dollars before steadying around C$1.44. It rose but stayed below last month's highs on the Mexican peso.

Treasuries rallied and S&P 500 futures rose 0.2%. European futures slipped 0.4%. Chinese stocks and the yuan tentatively rose.

"Tariffs are necessarily an overhang," said Vis Nayar, chief investment officer at Eastspring Investments in Singapore.

"I think we should expect volatility. But there is hope that there is some pragmatism. We have to assume that he's not going to do anything that just brings up US inflation without paying attention to that."

PRO-BUSINESS, BUT AT A COST

Trump enters office with an ambitious agenda spanning trade, immigration, tax cuts and deregulation which has the potential to boost US corporate profits but which could also reignite inflation and put upward pressure on interest rates.

In his inaugural speech, Trump pledged to bolster the US oil, gas and power industries and to crack down on immigration.

He pardoned supporters who attacked the Capitol four years ago. He also withdrew from the Paris climate pact and declared an emergency to clear the way for more oil and gas production.

Battery stocks in South Korea fell after he revoked an order that had sought to ensure half of new cars sold in the US after 2030 were electric vehicles. A US holiday on Monday means that US equities will react on Tuesday.

"Most of what he has been talking about will help spur growth and corporate profits," said Jack Ablin, chief investment officer at Cresset Capital.

"But many will come at a cost. We will need to see a lot of earnings growth to make up for even a minor increase in interest rates that could follow higher tariffs" and other proposals, he said.

Cryptocurrency markets, which have soared in the run-up to Trump taking office, came under pressure as the lack of any instant crypto-friendly announcements stirred some disappointment. Bitcoin, which came close to $110,000 on Monday was trading around the $100,000 mark and a Trump-branded memecoin that hit almost $75 on the weekend fell to $36.

During the first year of Trump's first administration, the S&P 500 rose 19.4%, following a 5% rally in his first 100 days.

For the entirety of his first term, the S&P 500 rose nearly 68%, but saw bouts of volatility, stemming in part from a trade war Trump fought with China.

"The big question on investors' minds right now is going to be 'how' -- how will he cut costs and lower inflation and lower interest rates," said Josh Strange, president of Good Life Financial Advisors of NoVA, a financial advisory firm.