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Saudi Arabia: SAGIA to Become an Independent Ministry

Saudi Arabia: SAGIA to Become an Independent Ministry
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Saudi Arabia: SAGIA to Become an Independent Ministry

Saudi Arabia: SAGIA to Become an Independent Ministry

Transforming the Saudi General Investment Authority (SAGIA) into an independent ministry represents a fundamental shift in the national economy.

Such a move would diversify production and attract qualitative investments, according to an economist and member of the Saudi Shura Council.

Saudi Arabia announced Tuesday that SAGIA will become the Ministry of Investment, led by former Energy Minister Khalid al-Falih.

Shura member Saeed al-Sheikh told Asharq Al-Awsat that the decision to convert SAGIA into a ministry is important, strategic, and in line with the directions of Vision 2030. It will give the Authority additional powers enjoyed by ministries to increase its effectiveness in attracting local and international investments.

Sheikh believes that there is an urgent need for horizontal diversification in light of the information boom and the fourth industrial revolution, pointing out that transforming the authority into a ministry aims to attract more qualitative investments that achieve high added value and also create job opportunities. 

In addition, the investment sector will be separated from the Ministry of Commerce in a step that confirms the seriousness of the Saudi objective to diversify the economy, involve the private sector in development, and attract more investments that add value to the national economy.

The step also comes within the framework of promoting the government’s performance and pushing it to achieve the goals and initiatives of Vision 2030.

Vision 2030 is based on three axes: A prosperous economy, an ambitious state, and a vibrant society, in order for Saudi Arabia to be a pioneer in investment.

SAGIA sought to attract and enable qualitative investments for sustainable development, as the authority worked to monitor and evaluate the performance of investments and overcome difficulties faced by investors. It has carried out studies, and presented and proposed implementation plans with a view to promoting investments within Saudi Arabia.

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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
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US Treasury Targets Russia's Gazprombank with New Sanctions

FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: A bronze seal for the Department of the Treasury is shown at the US Treasury building in Washington, US, January 20, 2023. REUTERS/Kevin Lamarque/File Photo

The United States imposed new sanctions on Russia's Gazprombank on Thursday, the Treasury Department said, as President Joe Biden steps up actions to punish Moscow for its invasion of Ukraine before he leaves office in January.
The move, which wields the department's most powerful sanctions tool, effectively kicks Gazprombank out of the US banking system, bans its trade with Americans and freezes its US assets, Reuters reported.
Gazprombank is one of Russia's largest banks and is partially owned by Kremlin-owned gas company Gazprom. Since Russia's invasion in February 2022, Ukraine has been urging the US to impose more sanctions on the bank, which receives payments for natural gas from Gazprom's customers in Europe.
The fresh sanctions come days after the Biden administration allowed Kyiv to use US ATACMS missiles to strike Russian territory. On Tuesday, Ukraine fired the weapons, the longest range missiles Washington has supplied for such attacks on Russia, on the war's 1,000th day.
The Treasury also imposed sanctions on 50 small-to-medium Russian banks to curtail the country's connections to the international financial system and prevent it from abusing it to pay for technology and equipment needed for the war. It warned that foreign financial institutions that maintain correspondent relationships with the targeted banks "entails significant sanctions risk."
"This sweeping action will make it harder for the Kremlin to evade US sanctions and fund and equip its military," Treasury Secretary Janet Yellen said. "We will continue to take decisive steps against any financial channels Russia uses to support its illegal and unprovoked war in Ukraine."
Gazprombank said Washington's latest move would not affect its operations. The Russian embassy in Washington did not respond to requests for comment.
Along with the sanctions, Treasury also issued two new general licenses authorizing US entities to wind down transactions involving Gazprombank, among other financial institutions, and to take steps to divest from debt or equity issued by Gazprombank.
Gazprombank is a conduit for Russia to purchase military materiel in its war against Ukraine, the Treasury said. The Russian government also uses the bank to pay its soldiers, including for combat bonuses, and to compensate the families of its soldiers killed in the war.
The administration believes the new sanctions improve Ukraine's position on the battlefield and ability to achieve a just peace, a source familiar with the matter said.
COLLATERAL IMPACT
While Gazprombank has been on the administration's radar for years, it has been seen as a last resort because of its focus on energy and the desire to avoid collateral impact on Europe, a Washington-based trade lawyer said.
"I think that the current administration is trying to put as much pressure and add as many sanctions as possible prior to January 20th to make it harder for the next administration to unwind," said the lawyer, Douglas Jacobson.
Officials in Slovakia and Hungary said they were studying the impacts of the new US sanctions.
Trump would have the power to remove the sanctions, which were imposed under an executive order by Biden, if he wants to take a different stance, Jacobson said.
After Russia's invasion in 2022, the Treasury placed debt and equity restrictions on 13 Russian firms, including Gazprombank, Sberbank and the Russian Agricultural Bank.
The US Treasury has also worked to provide Ukraine with funds from windfall proceeds of frozen Russian assets.