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.



Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
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Firm Dollar Keeps Pound, Euro and Yen Under Pressure

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/ File Photo

The US dollar charged ahead on Thursday, underpinned by rising Treasury yields, putting the yen, sterling and euro under pressure near multi-month lows amid the shifting threat of tariffs.

The focus for markets in 2025 has been on US President-elect Donald Trump's agenda as he steps back into the White House on Jan. 20, with analysts expecting his policies to both bolster growth and add to price pressures, according to Reuters.

CNN on Wednesday reported that Trump is considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries. On Monday, the Washington Post said Trump was looking at more nuanced tariffs, which he later denied.

Concerns that policies introduced by the Trump administration could reignite inflation has led bond yields higher, with the yield on the benchmark 10-year US Treasury note hitting 4.73% on Wednesday, its highest since April 25. It was at 4.6709% on Thursday.

"Trump's shifting narrative on tariffs has undoubtedly had an effect on USD. It seems this capriciousness is something markets will have to adapt to over the coming four years," said Kieran Williams, head of Asia FX at InTouch Capital Markets.

The bond market selloff has left the dollar standing tall and casting a shadow on the currency market.

Among the most affected was the pound, which was headed for its biggest three-day drop in nearly two years.

Sterling slid to $1.2239 on Thursday, its weakest since November 2023, even as British government bond yields hit multi-year highs.

Ordinarily, higher gilt yields would support the pound, but not in this case.

The sell-off in UK government bond markets resumed on Thursday, with 10-year and 30-year gilt yields jumping again in early trading, as confidence in Britain's fiscal outlook deteriorates.

"Such a simultaneous sell-off in currency and bonds is rather unusual for a G10 country," said Michael Pfister, FX analyst at Commerzbank.

"It seems to be the culmination of a development that began several months ago. The new Labour government's approval ratings are at record lows just a few months after the election, and business and consumer sentiment is severely depressed."

Sterling was last down about 0.69% at $1.2282.

The euro also eased, albeit less than the pound, to $1.0302, lurking close to the two-year low it hit last week as investors remain worried the single currency may fall to the key $1 mark this year due to tariff uncertainties.

The yen hovered near the key 160 per dollar mark that led to Tokyo intervening in the market last July, after it touched a near six-month low of 158.55 on Wednesday.

Though it strengthened a bit on the day and was last at 158.15 per dollar. That all left the dollar index, which measures the US currency against six other units, up 0.15% and at 109.18, just shy of the two-year high it touched last week.

Also in the mix were the Federal Reserve minutes of its December meeting, released on Wednesday, which showed the central bank flagged new inflation concerns and officials saw a rising risk the incoming administration's plans may slow economic growth and raise unemployment.

With US markets closed on Thursday, the spotlight will be on Friday's payrolls report as investors parse through data to gauge when the Fed will next cut rates.