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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
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Bahrain Postpones Housing Loan Installments for 6 Months

Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)
Bahrain's Crown Prince Salman bin Hamad bin Isa Al Khalifa addresses the World Islamic Economic Forum in London. (Reuters)

Housing loan installments will be postponed for six months starting in April, Bahrain’ government announced on Monday.

This decision is part of the measures taken by the government to reduce the effects of the coronavirus outbreak on the Kingdom’s economy and citizens.

Crown Prince Salman bin Hamad Al Khalifa, first deputy premier, took part in the cabinet session, which was chaired by Prime Minister Prince Khalifa bin Salman Al Khalifa and was held via videoconference.

In order to help stabilize the economy, the government announced in April a BHD4.3 billion ($11.4 billion) stimulus package to mitigate the economic impact of COVID-19 for both individuals and businesses.

It included key polices, such as paying salaries of all private sector employees for three months from April 2020 from the unemployment fund pursuant to constitutional procedures and Bahrain's Social Insurance Law.

It also pledged to pay the Electricity and Water Authority utility bills for individuals and businesses for three months from April.

The government exempted municipal fees for all individuals and businesses, industrial land rental fees for all businesses and tourism levies for all tourism-related industry for a period of three months from April 2020.

It decided to increases the size of the Liquidity Support Fund two-fold to BHD200 million ($530 million) and the Central Bank of Bahrain's loan facilities to BHD3.7 billion ($9.8 billion) to allow the deferment of debt installments and the extension of additional credit.

The Kingdom redirected all Tamkeen (the government agency responsible for the provisions of loans and assistance to businesses) programs to support adversely affected businesses and the restructuring of debts issued by Tamkeen.

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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
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Saudi Arabia Sees Highest Level of Non-oil Private Sector Activity in 4 Months

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)
The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders. (Asharq Al-Awsat)

Business activity in Saudi Arabia's non-oil sector accelerated to a four-month high in September, driven by strong demand, which led to faster growth in new orders. The Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI), adjusted for seasonal factors, rose to 56.3 points from 54.8 in August, marking the highest reading since May and further distancing itself from the 50.0 level that indicates growth.

The 1.5-point increase in the PMI reflects a larger expansion in both output and new orders, alongside challenges in supply. The improvement in business conditions contributed to a significant rise in employment opportunities, although difficulties in finding skilled workers led to a shortage in production capacity.

At the same time, concerns over increasing competition caused a decline in future output expectations. According to the PMI statement, inventories of production inputs remained in good condition, which encouraged some companies to reduce their purchasing efforts.

Growth was strong overall and widespread across all non-oil sectors under study. Dr. Naif Al-Ghaith, Senior Economist at Riyad Bank, said that the rise in Saudi Arabia's PMI points to a notable acceleration in the growth of the non-oil private sector, primarily driven by increased production and new orders, reflecting the sector’s expansionary activity.

Al-Ghaith added that companies responded to the rise in domestic demand, which plays a crucial role in reducing the Kingdom's reliance on oil revenues. The upward trend also indicates improved business confidence, pointing to a healthy environment for increased investment, job creation, and overall economic stability.

He emphasized that this growth in the non-oil sector is particularly important given the current context of reduced oil production and falling global oil prices. With oil revenues under pressure, the strong performance of the non-oil private sector acts as a buffer, helping mitigate the potential impact on the country's economic conditions.

Al-Ghaith continued, noting that diversifying income sources is essential to maintaining growth amid the volatility of oil markets. He explained that increased production levels not only enhance the competitiveness of Saudi companies but also encourage developments aimed at expanding the private sector's participation in the economy.

This shift, he said, provides a more stable foundation for long-term growth, making the economy less susceptible to oil price fluctuations.