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.



Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
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Saudi Non-Oil Exports Hit Two-Year High

The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)
The King Abdulaziz Port in Dammam, eastern Saudi Arabia. (“Mawani” port authority)

Saudi Arabia’s non-oil exports soared to a two-year high in May, reaching SAR 28.89 billion (USD 7.70 billion), marking an 8.2% year-on-year increase compared to May 2023.

On a monthly basis, non-oil exports surged by 26.93% from April.

This growth contributed to Saudi Arabia’s trade surplus, which recorded a year-on-year increase of 12.8%, reaching SAR 34.5 billion (USD 9.1 billion) in May, following 18 months of decline.

The enhancement of the non-oil private sector remains a key focus for Saudi Arabia as it continues its efforts to diversify its economy and reduce reliance on oil revenues.

In 2023, non-oil activities in Saudi Arabia contributed 50% to the country’s real GDP, the highest level ever recorded, according to the Ministry of Economy and Planning’s analysis of data from the General Authority for Statistics.

Saudi Finance Minister Mohammed Al-Jadaan emphasized at the “Future Investment Initiative” in October that the Kingdom is now prioritizing the development of the non-oil sector over GDP figures, in line with its Vision 2030 economic diversification plan.

A report by Moody’s highlighted Saudi Arabia’s extensive efforts to transform its economic structure, reduce dependency on oil, and boost non-oil sectors such as industry, tourism, and real estate.

The Saudi General Authority for Statistics’ monthly report on international trade noted a 5.8% growth in merchandise exports in May compared to the same period last year, driven by a 4.9% increase in oil exports, which totaled SAR 75.9 billion in May 2024.

The change reflects movements in global oil prices, while production levels remained steady at under 9 million barrels per day since the OPEC+ alliance began a voluntary reduction in crude supply to maintain prices. Production is set to gradually increase starting in early October.

On a monthly basis, merchandise exports rose by 3.3% from April to May, supported by a 26.9% increase in non-oil exports. This rise was bolstered by a surge in re-exports, which reached SAR 10.2 billion, the highest level for this category since 2017.

The share of oil exports in total exports declined to 72.4% in May from 73% in the same month last year.

Moreover, the value of re-exported goods increased by 33.9% during the same period.