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.



Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
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Lebanon's Bonds Rally as Parliament Elects 1st President since 2022

Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir
Lebanese Parliament Speaker Nabih Berri shakes hands with Lebanon’s army chief Joseph Aoun after he is elected as the country’s president at the parliament building in Beirut, Lebanon, Jan. 9, 2025. Reuters/Mohamed Azakir

Lebanese government bonds extended their three-month-long rally on Thursday as the crisis-ravaged country's parliament voted in a new head of state for the first time since 2022.

Lebanese lawmakers elected army chief Joseph Aoun as president. It came after the failure of 12 previous attempts to pick a president and boosts hopes that Lebanon might finally be able to start addressing its dire economic woes.

The country's battered bonds have almost trebled in value since September, when the regional conflict with Israel weakened Lebanese armed group Hezbollah, long viewed as an obstacle to overcoming its political paralysis.

According to Reuters, most of Lebanon's international bonds, which have been in default since 2020, rallied after Aoun's victory was announced to stand 1.3 to 1.7 cents higher on the day and at just over 16 cents on the dollar.

They have risen almost every day since late December, although they remain some of the lowest-priced government bonds in the world, reflecting the scale of Lebanon's difficulties.

With its economy and financial system still reeling from a collapse in 2019, Lebanon is in dire need of international support to rebuild from the conflict, which the World Bank estimates to have cost the country $8.5 billion.

Hasnain Malik, an analyst at financial research firm Tellimer said Aoun's victory was "the first necessary step on a very long road to recovery".

Malik said Aoun now needs to appoint a prime minister and assemble a cabinet that can retain the support of parliament, resuscitate long-delayed reforms and help Lebanon secure international financial support.

The 61-year old Aoun fell short of the required support in Thursday's first round of parliamentary voting and only succeeded in a second round, reportedly after a meeting with Hezbollah and Amal party MPs.

"That presents significant ongoing risk to any new PM and cabinet, which need to maintain the confidence of a majority of parliament," Malik said.