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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)
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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.

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Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations
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Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Türkiye Inflation Exceeds Forecasts, Tempering Rate Cut Expectations

Turkish annual inflation fell to 49.38% in September while the monthly rate was much higher than expected at nearly 3%, setting the stage for later than expected interest rate cuts by the central bank.

At 50%, the central bank's policy rate is now higher than the annual consumer price index (CPI) for the first time since 2021, marking a milestone in an aggressive tightening cycle meant to correct years of easy money and soaring prices.

But after prices came in higher than expected last month, boosted in part by education-related costs, some analysts said the bank was unlikely to be able to ease policy until December at the earliest and possibly not until next year.

The "data makes an interest rate cut this year look very unlikely to us," said Capital Economics in a note.

Month-on-month inflation was 2.97%, according to the Turkish Statistical Institute, above a Reuters poll forecast of 2.2%. Annual CPI was also higher than the poll forecast of 48.3%.

In August, monthly CPI was 2.47%, with the annual rate at 51.97%. The central bank is closely watching the monthly rate for signals of when to begin an easing cycle, though it has only dipped below 2% once this year, in June.

Last month, a Reuters poll showed a growing minority of analysts expecting a first cut next year, with the consensus settled around November and expectations of at least 20 points of easing by the end of 2025.

But Haluk Burumcekci, founding partner at Burumcekci Consulting, said the September data did not signal an imminent cut. Even if October inflation is in line with the central bank's guidance, he said, "it may not be sufficient" for a November cut.

-TIGHT POLICY

The domestic producer price index was up 1.37% month-on-month in September for an annual rise of 33.09%, the data showed.

The lira was slightly firmer at 34.18 against the dollar.

Annual inflation in September was driven by a 97.9% rise in housing prices, with education prices up 93.59%. The key food and non-alcoholic drinks sector prices were up 43.72%, below the overall level.

Last month the central bank held rates steady at 50% for a sixth straight month, saying it remained highly attentive to inflation risks. But it removed a reference to potential tightening, seen as a first signal that easing would eventually come.

The bank, which has hiked rates by 4,150 basis points since June last year, sees inflation falling to 38% at the end of this year and 14% next. In the medium term programme, the government sees end-2024 inflation of 41.5%.