عربي English Türkçe اردو فارسى
Logo
Latest News
Business

KSA Enables Private Sector to Invest In State Development Projects

Saudi Arabia seeks to enable the private sector to participate in government development projects. (Asharq Al-Awsat)
Saudi Arabia seeks to enable the private sector to participate in government development projects. (Asharq Al-Awsat)
TT
TT

KSA Enables Private Sector to Invest In State Development Projects

Saudi Arabia seeks to enable the private sector to participate in government development projects. (Asharq Al-Awsat)
Saudi Arabia seeks to enable the private sector to participate in government development projects. (Asharq Al-Awsat)

Saudi Arabia’s General Authority for Real Estate announced the signing of a MoU with the Projects Support Fund at the Ministry of Finance to enhance mutual cooperation in the field of partnerships with the private sector.

The memorandum gives the private sector the opportunity to invest in development projects in the sectors covered by the fund, namely education, health care and real estate development.

The governor of the Real Estate General Authority, Ihsan Bafakih, said on Thursday that the MoU reflected the Authority’s approach towards enhancing integration and partnership between all components of the government system in order to achieve the desired goals.

According to Bafakih, the Authority and the Fund seek, through the MoU, to achieve several goals, including contributing to financing real estate development projects, such as buildings and integrated service projects, in accordance with the financing policies approved by the Fund, in addition to qualifying private sector institutions and introducing them to the financial and technical requirements and providing an favorable environment to attract various qualitative investments.

On a different note, the National Debt Management Center at the Ministry of Finance (NDMC) signed a memorandum of cooperation with the Nippon Export and Investment Insurance (NEXI). The agreement was signed by Fahad Al-Saif, Chief Executive Officer of the NDMC, and Atsuo Kuroda, Chairman and CEO of NEXI.

Saudi Finance Minister Mohammed Al-Jadaan, who is also the chairman of the NDMC’s Board of Directors, said that the signing of the Memorandum came in parallel with the fifth Saudi-Japan Vision 2030 Ministerial Meeting and aimed to expand the opportunities of financing government projects implemented by Japanese companies in the Kingdom.

Most Viewed

 
 
Business

IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
TT
TT

IMF: Middle East Conflict Escalation Could Have Significant Economic Consequences

Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki
Displaced families, mainly from Syria, gather at Beirut's central Martyrs' Square, where they spent the night fleeing the overnight Israeli strikes in Beirut, Lebanon September 28, 2024. REUTERS/Louisa Gouliamaki

The International Monetary Fund said on Thursday that an escalation of the conflict in the Middle East could have significant economic ramifications for the region and the global economy, but commodity prices remain below the highs of the past year.

IMF spokesperson Julie Kozack told a regular news briefing that the Fund is closely monitoring the situation in southern Lebanon with "grave concern" and offered condolences for the loss of life.

"The potential for further escalation of the conflict heightens risks and uncertainty and could have significant economic ramifications for the region and beyond," Kozack said.

According to Reuters, she said it was too early to predict specific impacts on the global economy, but noted that economies in the region have already suffered greatly, especially in Gaza, where the civilian population "faces dire socioeconomic conditions, a humanitarian crisis and insufficient aid deliveries.

The IMF estimates that Gaza's GDP declined 86% in the first half of 2024, Kozack said, while the West Bank's first-half GDP likely declined 25%, with prospects of a further deterioration.

Israel's GDP contracted by about 20% in the fourth quarter of 2023 after the conflict began, and the country has seen only a partial recovery in the first half of 2024, she added.
The IMF will update its economic projections for all countries and the global economy later in October when the global lender and World Bank hold their fall meetings in Washington.
"In Lebanon, the recent intensification of the conflict is exacerbating the country's already fragile macroeconomic and social situation," Kozack said, referring to Israel's airstrikes on Hezbollah in Lebanon.
"The conflict has inflicted a heavy human toll on the country, and it has damaged physical infrastructure."
The main channels for the conflict to impact the global economy have been through higher commodity prices, including oil and grains, as well as increased shipping costs, as vessels avoid potential missile attacks by Yemen's Houthis on vessels in the Red Sea, Kozack said. But commodity prices are currently lower than their peaks in the past year.
"I just emphasize once again that we're closely monitoring the situation, and this is a situation of great concern and very high uncertainty," she added.
Lebanon in 2022 reached a staff-level agreement with the IMF on a potential loan program, but there has been insufficient progress on required reforms, Kozack said.
"We are prepared to engage with Lebanon on a possible financing program when the situation is appropriate to do so, but it would necessitate that the actions can be taken and decisive policy measures can be taken," Kozack added. "We are currently supporting Lebanon through capacity development assistance and other areas where possible."