Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
TT
20

Saudi Arabia Raises Minimum Limit for Entities Reporting Economic Concentration

"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)
"Muqawil” platform provides many services that facilitate procedures for contractors in Saudi Arabia (Asharq Al-Awsat)

The Saudi government has raised the minimum limit of annual sales at which entities should notify the authority of economic concentration transactions to SAR 200 million ($53.3 million) from SAR 100 million ($26.6 million).

The decision was based on the annual review made by the General Authority for Competition (GAC), which considered the best international practices.

This came under the approval of GAC’s board of directors to amend Article No. 2 of the executive regulations of the Competition Law to read: “Entities seeking to join an economic concentration transaction – or the persons legally authorized to represent them - must notify the Authority at least 90 days prior to the completion of such transaction, if the total value of the entities' annual sales exceeds SAR 200 million.”

The amendment was approved during the 80th board meeting, with other resolutions adopted.

The GAC board followed up on the preliminary results of investigations into the motor sector, issuing several directives.

It also reviewed the investigation results of a lawsuit related to two entities in the food delivery and restaurants sectors, approving a settlement.

The board approved another settlement between two entities operating in the construction sector and nodded to exempting two entities operating in the electric vehicles (EV) sector for exclusive and unified contracts.

In other news, the Saudi Contractors Authority revealed that over 1,000 e-contracts worth more than SAR 308 million ($82.1 million) have been concluded on the Kingdom’s “Muqawil” platform, launched in 2021.

According to the Authority, 600 contracts have been signed for the implementation of framed structures without materials. Meanwhile, the contracts for implementation with materials reached 300.

The value of the highest contract concluded on Muqawil exceeded SAR 50 million ($13.3 million).

Muqawil also recorded SAR 10,000 ($2.6 thousand) as the lowest value of a typical contract concluded on the platform.



Gold Falls as Investors' Focus Turns to G7 Meeting, Fed Decision

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
TT
20

Gold Falls as Investors' Focus Turns to G7 Meeting, Fed Decision

A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)
A participant shows gold bars during the 21st edition of the international gold and jewelry exhibition at the Kuwait International Fairgrounds in Kuwait City on May 23, 2024. (Photo by Yasser AL ZAYYAT / AFP)

Gold fell on Monday as investors weighed the impact of the ongoing Israel-Iran conflict, while also focusing on the Group of Seven leaders meeting and the Federal Reserve policy decision later this week.

Spot gold fell 0.5% to $3,415.36 an ounce, as of 0854 GMT, after hitting its highest level since April 22 earlier in the session.

US gold futures were down 0.5% to $3,434.50.

"Geopolitical tensions are not disappearing near term, as well rates are likely to be cut further by the central bank, so that should provide a floor to gold," said Giovanni Staunovo, an analyst at UBS.

Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, killing at least eight people and destroying homes.

The dangers of further escalation loomed over a summit of G7 leaders in Canada, with US President Donald Trump expressing hope on Sunday that a deal could be done but no sign of the fighting abating on the fourth day of the conflict.

There was no sign of panic among investors as currency markets stayed calm and Wall Street stock futures firmed after an early dip.

"Investors will be watching developments in the Middle East very closely, especially the risk of other countries being dragged into the conflict," said Ole Hansen, head of commodity strategy at Saxo Bank.

Gold is considered a safe-haven asset during times of geopolitical and economic uncertainty. It also tends to thrive in a low-interest rate environment.

On the radar this week is the Federal Reserve's interest rate decision and Fed Chair Jerome Powell's comments due on Wednesday. The Fed has held its policy rate in the 4.25%-4.50% range since December.

Elsewhere, spot silver rose 0.3% to $36.41 per ounce, platinum rose 1.2% to $1,242.85, while palladium gained 1.6% to $1,044.40.