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.



Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
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Gold Hits Four-week Peak on Safe-haven Demand

A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk
A view shows ingots of 99.99 percent pure gold in a workroom during production at Krastsvetmet precious metals plant in the Siberian city of Krasnoyarsk, Russia, May 23, 2024. REUTERS/Alexander Manzyuk

Gold prices rose to a near four-week high on Thursday, supported by safe-haven demand, while investors weighed how US President-elect Donald Trump's policies would impact the economy and inflation.

Spot gold inched up 0.4% to $2,672.18 per ounce, as of 0918 a.m. ET (1418 GMT). US gold futures rose 0.7% to $2,691.80.

"Safe-haven demand is modestly supporting gold, offsetting downside pressure coming from a stronger dollar and higher rates," UBS analyst Giovanni Staunovo said.

The dollar index hovered near a one-week high, making gold less appealing for holders of other currencies, while the benchmark 10-year Treasury yield stayed near eight-month peaks, Reuters reported.

"Market uncertainty is likely to persist with the upcoming inauguration of Donald Trump as the next US president," Staunovo said.

Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported on Wednesday, citing sources familiar with the matter.

Trump will take office on Jan. 20 and his proposed tariffs could potentially ignite trade wars and inflation. In such a scenario, gold, considered a hedge against inflation, is likely to perform well.

Investors' focus now shifts to Friday's US nonfarm payrolls due at 08:30 a.m. ET for further clarity on the Federal Reserve's interest rate path.

Non-farm payrolls likely rose by 160,000 jobs in December after surging by 227,000 in November, a Reuters survey showed.

Gold hit a near four-week high on Wednesday after a weaker-than-expected US private employment report hinted that the Fed may be less cautious about easing rates this year.

However, minutes of the Fed's December policy meeting showed officials' concern that Trump's proposed tariffs and immigration policies may prolong the fight against rising prices.

High rates reduce the non-yielding asset's appeal.

The World Gold Council on Wednesday said physically-backed gold exchange-traded funds registered their first inflow in four years.

Spot silver rose 0.7% to $30.32 per ounce, platinum fell 0.8% to $948.55 and palladium shed 1.4% to $915.75.