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Saudi Arabia Orders Investors to Maintain Environmental Standards, Develop Local Infrastructure

The Ministry of Investment is working to attract foreign investments and facilitate their entry into the Saudi market (Asharq Al-Awsat)
The Ministry of Investment is working to attract foreign investments and facilitate their entry into the Saudi market (Asharq Al-Awsat)
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Saudi Arabia Orders Investors to Maintain Environmental Standards, Develop Local Infrastructure

The Ministry of Investment is working to attract foreign investments and facilitate their entry into the Saudi market (Asharq Al-Awsat)
The Ministry of Investment is working to attract foreign investments and facilitate their entry into the Saudi market (Asharq Al-Awsat)

Saudi Arabia has asked investors to maintain environmental and social standards and contribute to social responsibility.

Following the new investment law, Riyadh asserted that new investors must work from their headquarters inside the Kingdom, provided that the Ministry of Investment facilitates the required procedures.

Asharq Al-Awsat learned that the Federation of Saudi Chambers had directed all the industrial and commercial chambers in the Kingdom to submit their observations and suggestions through the National Competitiveness Center (NCC) platform.

According to the new law, a copy of which was reviewed by Asharq Al-Awsat, the investor must abide by all laws and regulations in force in the Kingdom.

They must also maintain independent accounting records for the facility and provide any information requested by the ministry and relevant authorities to enable them to exercise their statutory powers.

The new investment must meet corporate governance national standards according to the related sector and pay all taxes and fees within the specified time under the laws and regulations in force in the Kingdom.

The new law will assign a ministerial committee to determine the approved activities in line with national security and vital economic interests and preserve public order.

An investor, who is a party to any dispute, including that which arises with a competent authority, may resort to the court or other alternative jurisdiction to settle disputes in a manner that does not contradict the laws and regulations in the country.

The competent authority may resort to international arbitration after obtaining the necessary approvals, following a contract concluded with the investor before the dispute arose, or according to the conditions agreed upon by the two parties.

Concerning the penalties, the ministry informs the investor in writing when the provisions and regulations are violated to remove them within a specified period.

In case of persistent violations, the investor shall be penalized with a fine of no more than $133,000 and asked to remove the offense. In addition, the registration or license will be revoked along with all or some of the granted facilities.

The regulation determines the procedures for detecting violations and the penalties for committing them.

The penalties are applied by the minister or his authorized representative, taking into account the gravity of the violation and its recurrence.

The law aims to attract direct investments, enhance the environment, preserve rights, and increase confidence to enter the Kingdom’s market.

The ministry is working to facilitate the procedures for attracting and protecting direct investments, enhancing the investment environment, preserving investor rights, increasing their confidence in local assets, and ensuring equal opportunities for direct public and private investments.

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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
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Inflation Rose to 2.3% in Europe. That Won't Stop the Central Bank from Cutting Interest Rates

A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq
A view shows the Bercy Economy and Finance Ministry as a metro operated by the Paris transport network RATP passes over the Pont de Bercy bridge in Paris, France, November 28, 2024. REUTERS/Stephanie Lecocq

Inflation in the 20 countries that use the euro currency rose in November — but that likely won’t stop the European Central Bank from cutting interest rates as the prospect of new US tariffs from the incoming Trump administration adds to the gloom over weak growth.
The European Union’s harmonized index of consumer prices stood up 2.3% in the year to November, up from 2.0% in October, the EU statistics agency Eurostat reported Friday.
Energy prices fell 1.9% from a year ago, but that was offset by price increases of 3.9% in the services sector, a broad category including haircuts, medical treatment, hotels and restaurants, and sports and entertainment, The Associated Press reported.
Inflation has come down a long way from the peak of 10.6% in October 2022 as the ECB quickly raised rates to cool off price rises. It then started cutting them in June as worries about growth came into sharper focus.
High central bank benchmark rates combat inflation by influencing borrowing costs throughout the economy. Higher rates make buying things on credit — whether a car, a house or a new factory — more expensive and thus reduce demand for goods and take pressure off prices. However, higher rates can also dampen growth.
Growth worries got new emphasis after surveys of purchasing managers compiled by S&P Global showed the eurozone economy was contracting in October. On top of that come concerns about how US trade policy under incoming President Donald Trump, including possible new tariffs, or import taxes on imported goods, might affect Europe’s export-dependent economy. Trump takes office Jan. 20.
The eurozone’s economic output is expected to grow 0.8% for all of this year and 1.3% next year, according to the European Commission’s most recent forecast.
All that has meant the discussion about the Dec. 12 ECB meeting has focused not on whether the Frankfurt-based bank’s rate council will cut rates, but by how much. Market discussion has included the possibility of a larger than usual half-point cut in the benchmark rate, currently 3.25%.
Inflation in Germany, the eurozone’s largest economy, held steady at 2.4%. That “will strengthen opposition against a 50 basis point cut,” said Carsten Brzeski, global chief of macro at ING bank, using financial jargon for a half-percentage-point cut.
The ECB sets interest rate policy for the European Union member countries that have joined the euro currency.