Saudi Business Sector Responds to Govt Call to Tighten Preventive Measures

Saudi Arabia stresses the implementation of the precautionary measures in the public and private sectors (Photo: Asharq Al-Awsat).
Saudi Arabia stresses the implementation of the precautionary measures in the public and private sectors (Photo: Asharq Al-Awsat).
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Saudi Business Sector Responds to Govt Call to Tighten Preventive Measures

Saudi Arabia stresses the implementation of the precautionary measures in the public and private sectors (Photo: Asharq Al-Awsat).
Saudi Arabia stresses the implementation of the precautionary measures in the public and private sectors (Photo: Asharq Al-Awsat).

The remote work system implemented by Saudi Arabia when the outbreak of the Covid-19 was first reported has succeeded in achieving productive targets during the first wave of the virus and contributed to generating jobs and work opportunities in small cities and governorates, experts told Asharq Al-Awsat.

This comes as the Saudi Ministry of Human Resources and Social Development has recently called on workers in the public and private sectors to adhere to precautionary and preventive measures, and to abide by health instructions and physical distancing at workplaces, in addition to resorting to remote work as much as possible, with the importance of applying a flexible working-hour policy.

Last year, the ministry launched the second phase of the “remote work” program, which includes the launch of an electronic portal to provide job offers and other services, such as tracking and following up on employees’ performance.

The ministry explained that the launch of the second phase comes after setting the controls and standards that govern the work environment, to ensure that the time and quality of the output is not affected, as well as guaranteeing the productivity and discipline of the employees included in the program.

In this regard, expert on public policies and international cooperation, Dr. Akram Jadawi, told Asharq Al-Awsat that the ministry’s decision to invite all sectors to implement the remote work program and to adopt flexible work policies came in a timely manner, especially as some parties were quick to resort to the system and reduce the number of employees in workplaces.

The remote work system has proven its effectiveness in raising productivity whenever the appropriate conditions are present, Jadawi said.

Member of the Board of Directors of the Saudi Society for Human Resources, Bader Al-Enezi, told Asharq Al-Awsat that the public and private sectors, with their profit and non-profit branches, have gained experience in dealing with the remote work system after recognizing the risks of the pandemic.

He emphasized that several countries were working on equipping the technical infrastructure to ensure the continuity of the economy and workflow in light of the current crisis, adding that the Saudi sectors were able to keep pace with the rapid changes in the business model.



Dollar Set to End Week on a High on US Rates, Economic Outlook

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
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Dollar Set to End Week on a High on US Rates, Economic Outlook

A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo
A teller sorts US dollar banknotes inside the cashier's booth at a forex exchange bureau in downtown Nairobi, Kenya February 16, 2024. REUTERS/Thomas Mukoya/File photo

The dollar was on track for its strongest weekly performance since early December on Friday, propped up by expectations that the US economy will continue to outperform its peers globally this year and US interest rates will stay elevated for longer.

The greenback began the new year on a strong note, reaching a more than two-year high of 109.54 against a basket of currencies on Thursday as it extended a stellar rally from last year. A more hawkish Fed and a resilient US economy have led US Treasury yields to rise, prompting the dollar to charge higher.

Coupled with expectations that policies by US President-elect Donald Trump will boost growth this year and potentially add to price pressures, the dollar now looks relentless.

"Looks like dollar strength is here to stay for now in early 2025 given the US exceptionalism story is here to stay, and it still comes with high US yields," said Charu Chanana, chief investment strategist at Saxo, Reuters reported.

"Add to that the uncertainty from policies of the incoming (Donald) Trump administration, and you also get the safety aspect of the dollar looking attractive." Uncertainties over how Trump's plans for hefty import tariffs, tax cuts and immigration restrictions will affect global markets has in turn given the greenback additional safe haven support. Jobless claims data on Thursday confirmed a resilient US labor market, with the number of Americans filing new applications for unemployment benefits dropping to an eight-month low last week. The dollar index last stood at 109, down 0.2% on the day, but on track for a weekly gain of just under 1%, its strongest since early December.

Other currencies attempted to rebound against the firm dollar on Friday, still tracking steep losses on the week. The euro was last up 0.28% at $1.02950 but was headed for a 1.3% weekly decline, its worst since November.

The common currency was among the biggest losers against a towering dollar, having tumbled 0.86% in the previous session to a more than two-year low of $1.022475.

Traders are pricing in more than 100 basis points worth of rate cuts from the European Central Bank next year, while they expect just about 45 bps of easing from the Fed.

Uncertainties around trade policies of the incoming Trump administration are also weighing on the outlook for the euro looking ahead, along with China's yuan and some other emerging market currencies.

"We expect Trump's policy mix to trigger further dollar strengthening, with European currencies – and the euro in particular – coming under pressure from protectionism and monetary easing," said ING analysts in a note. Similarly, sterling ticked up 0.22% to $1.24065, after sliding 1.16% on Thursday. It was on track to lose roughly 1.4% for the week. Elsewhere, the yen rose around 0.24% to 157.085 per dollar, but was not far from an over five-month low of 158.09 per dollar hit in December. The Japanese currency has been a victim of the stark interest rate differential between the US and Japan for over two years now, with the Bank of Japan's caution over further rate increases spelling more pain for the yen.

The yen tumbled more than 10% in 2024, extending its losses into a fourth straight year. China's onshore yuan hit its weakest level in over a year at 7.3190 per dollar, as falling yields and expectations of more domestic rate cuts continued to weigh on the currency.