Saudis Buy 90,000 Tons of Rice for Zakat al-Fitr

Rice is the common benefactor's choice for end-of-Ramadan charity in Saudi Arabia, Asharq Al-Awsat
Rice is the common benefactor's choice for end-of-Ramadan charity in Saudi Arabia, Asharq Al-Awsat
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Saudis Buy 90,000 Tons of Rice for Zakat al-Fitr

Rice is the common benefactor's choice for end-of-Ramadan charity in Saudi Arabia, Asharq Al-Awsat
Rice is the common benefactor's choice for end-of-Ramadan charity in Saudi Arabia, Asharq Al-Awsat

Around 30 million individuals are heading to markets in Saudi Arabia to buy rice for Zakat al-Fitr, charity taken for the poor a few days before the end of fasting in the Islamic holy month of Ramadan.

Rice, a prominent commodity in Saudi Arabia, is the benefactor’s choice to give out as charity.

Usually each individual donates three kilograms of rice for Zakat al-Fitr, which is amounting this year to over 462 million Saudi rials ($123 million). Over 90,000 tons of rice are being distributed to the poor.

According to rice importers, the value of spending fluctuates according to the quality of rice being bought. Most consumers opt to buy rice that sells between 5 and 8 Saudi rials per kilogram.

Mohammed Shalan, the chairman of the board of directors at Abdul Rahman Al Shalan Sons Trading Co, confirmed that rice is the commodity of choice when it comes to distributing Zakat al-Fitr. Estimations indicate that 30 million individuals will be giving out 3 kilograms of rice each this year, Shalan said.

Shalan, whose company is one of the lead rice suppliers in the Kingdom, said that for the two months linked to Ramadan the consumption of rice rises significantly in the Kingdom. During those 60 days, rice consumption rates make up around 30% of the annual consumption volume which is estimated at 1.4 million tons.

The spike in consumption is a reflection of multiple factors. Families in Saudi Arabia consume more rice around Ramadan.

The commodity is integral to Suhoor meals, charity, Eid feasts and Zakat al-Fitr.

As for supply, Shalan reassured that market demand is covered despite the coronavirus pandemic. Demand was secured early on by authorities, who supported the private sector and backed the entry of goods into the Kingdom, which has stabilized the market, Shalan said.



Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.