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Saudi Arabia Adopts Urgent Measures to Combat Financial Fraud

The Kingdom has witnessed an increase in financial fraud, due to the rapid development of financial services. (Asharq Al-Awsat)
The Kingdom has witnessed an increase in financial fraud, due to the rapid development of financial services. (Asharq Al-Awsat)
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Saudi Arabia Adopts Urgent Measures to Combat Financial Fraud

The Kingdom has witnessed an increase in financial fraud, due to the rapid development of financial services. (Asharq Al-Awsat)
The Kingdom has witnessed an increase in financial fraud, due to the rapid development of financial services. (Asharq Al-Awsat)

The Saudi Central Bank (SAMA) announced on Friday the implementation of urgent temporary precautionary measures to combat financial fraud.

According to a circular issued by SAMA, banks operating in Saudi Arabia must adhere to a number of measures, including setting limits on daily electronic transfers and holding international transfers for 24 hours.

The Central Bank said that its steps came in line with powers entrusted to it to set instructions and procedures to protect bank customers, and take appropriate measures to counter financial criminal activity.

The Kingdom has witnessed an increase in fraud, due to the rapid development of financial services provided by banks through traditional and electronic channels, according to the circular issued by SAMA.

A recent meeting of The Financial Academy in Riyadh, held under the title, “Innovation and the future of investment in the banking sector,” pointed to the challenges faced by the Saudi banking sector in light of the rapid digital transformation.

CEO of Riyad Bank, Tariq Al-Sadhan, noted that the increasing risks of financial fraud constituted one of the biggest challenges facing banks in Saudi Arabia.

A recent scientific study prepared by the Naif Arab University for Security Sciences, in cooperation with the International Criminal Police Organization (Interpol), in early 2022, emphasized five types of financial fraud that are common in the Arab world.

The study analyzed 503 fraudulent internet advertisements, which attracted more than 137,000 potential victims.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.