Saudi Efforts to Engage Small Enterprises Into Aviation Services

 A photo taken on June 6, 2017 shows a general view of the King Fahad street in the Saudi capital Riyadh. (AFP)
A photo taken on June 6, 2017 shows a general view of the King Fahad street in the Saudi capital Riyadh. (AFP)
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Saudi Efforts to Engage Small Enterprises Into Aviation Services

 A photo taken on June 6, 2017 shows a general view of the King Fahad street in the Saudi capital Riyadh. (AFP)
A photo taken on June 6, 2017 shows a general view of the King Fahad street in the Saudi capital Riyadh. (AFP)

The General Authority for Small and Medium Enterprises (Monshaat) and the Saudi Ground Services Company (SGS) signed an agreement on Friday as part of ongoing efforts to engage small enterprises into the Saudi aviation services.

Under the agreement, Monshaat will work to nominate qualified entrepreneurs according to the approved mechanisms, provide them with advice and guidance and propose solutions to business challenges, while the SGS would secure experts and knowledge resources for ground handling operations.

The CEO of SGS, Raed Al-Idrisi, said that the agreement would include initiatives that enable the development of the aviation sector and ground handling services, in addition to providing material and practical support to allow companies to implement their solutions on the ground.

For his part, Monshaat Deputy Governor Esam Al-Thukair revealed that the percentage of SMEs lending out of the total funding provided by banks and financing companies reached 8.2 percent in 2020.

Speaking during a workshop entitled “Discussing the Challenges Facing the SMEs with the Financial Sector”, which was recently organized by the Riyadh Chamber, Al-Thukair stressed that Monshaat aimed to raise the percentage to 20 percent by 2030.

He added that the financing platform, which was recently launched by the authority, was able to provide 1.6 billion riyals ($426 million) to the sector through banks and companies within seven months.

The Riyadh Chamber emphasized the importance of the SMEs sector in supporting and strengthening the national economy, and its endeavor to reach innovative solutions aimed at injecting more resources into the national economy in line with the goals of Saudi Vision 2030.

Member of the Board of Directors of the Chamber of Commerce and Industry in Riyadh and Chair of the Financial Sector and Finance Committee, Kholoud Al-Dakhil, stated that the discussions covered four axes, namely financing, regulatory requirements and fees, the application of governance rules and the support provided by Monshaat.

Al-Dakhil stressed the importance of having a clear plan to structure government fees during the next five years that would enable SMEs to conduct their feasibility studies and manage their financial resources accordingly.

She pointed to the importance of enhancing communication and coordination between the Finance Committee represented by the Chamber and the private sector to exchange new ideas and innovations by SMEs.



Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions
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Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil Prices Rise as Concerns Grow over Supply Disruptions

Oil prices climbed on Tuesday reversing earlier declines, as fears of tighter Russian and Iranian supply due to escalating Western sanctions lent support.

Brent futures were up 61 cents, or 0.80%, to $76.91 a barrel at 1119 GMT, while US West Texas Intermediate (WTI) crude climbed 46 cents, or 0.63%, to $74.02.

It seems market participants have started to price in some small supply disruption risks on Iranian crude exports to China, said UBS analyst Giovanni Staunovo.

In China, Shandong Port Group issued a notice on Monday banning US sanctioned oil vessels from its network of ports, according to three traders, potentially restricting blacklisted vessels from major energy terminals on China's east coast.

Shandong Port Group oversees major ports on China's east coast, including Qingdao, Rizhao and Yantai, which are major terminals for importing sanctioned oil.

Meanwhile, cold weather in the US and Europe has boosted heating oil demand, providing further support for prices.

However, oil price gains were capped by global economic data.

Euro zone inflation

accelerated

in December, an unwelcome but anticipated blip that is unlikely to derail further interest rate cuts from the European Central Bank.

"Higher inflation in Germany raised suggestions that the ECB may not be able to cut rates as fast as hoped across the Eurozone, while US manufactured good orders fell in November," Ashley Kelty, an analyst at Panmure Liberum said.

Technical indicators for oil futures are now in overbought territory, and sellers are keen to step in once again to take advantage of the strength, tempering additional price advances, said Harry Tchilinguirian, head of research at Onyx Capital Group.

Market participants are waiting for more data this week, such as the US December non-farm payrolls report on Friday, for clues on US interest rate policy and the oil demand outlook.