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Al-Swaha: SEZ to Promote Saudi Arabia's Regional Leadership as Global Investment Hub

Al-Swaha: SEZ to Promote Saudi Arabia's Regional Leadership as Global Investment Hub
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Al-Swaha: SEZ to Promote Saudi Arabia's Regional Leadership as Global Investment Hub

Al-Swaha: SEZ to Promote Saudi Arabia's Regional Leadership as Global Investment Hub

Saudi Minister of Communications and Information Technology Eng. Abdullah Al-Swaha lauded the launching of the Cloud Computing Special Economic Zone (SEZ ), expressing his gratitude to Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and the Crown Prince for launching it along other three zones across the Kingdom.

Al-Swaha said that the Cloud Computing SEZ will promote Saudi Arabia's position and regional leadership as a global investment hub, opening new perspectives for development and supporting the growth of the digital economy.

"The Cloud Computing SEZ, along with the other three zones, will diversify the national economy and increase non-oil resources and investment in emerging companies, thereby training and hiring national capacities and supporting entrepreneurs through cloud services, in addition to supporting innovation and academic research and the establishment of a regional developers community," state news agency SPA quoted Al-Swaha as saying.

Also, Governor of Communications, Space and Technology Commission (CST) Dr. Mohammed Altamimi thanked "the wise leadership for launching the zone to be governed and managed by CST in collaboration with the Economic Cities and Special Zones Authority (ECZA) and success partners," affirming that the zone aims to attract global cloud computing companies, which will play a key role in stimulating the adoption of modern technologies and Industry X.O.

"The zone will promote the Kingdom's reputation as an investment destination for technology companies in the region and as a vital centre with flexible systems, competitive advantages and special systems and regulations. The incentives and exemptions offered to companies will maximize the influence of the presence of small companies and establish an ecosystem of tech companies and jobs in specific tech majors such as AI, Machine Learning, quantum computing, Blockchain and other advanced technologies."

According to SPA, Saudi Arabia is one of the first countries to adopt specific regulations and regulatory frameworks for cloud computing providers, which aims to encourage the public and private sectors to adopt Cloud services rather than traditional IT solutions.

CST's role lies in regulating the ICT sector in Saudi Arabia by implementing policies, regulations, and approved programs to develop IT and Emerging Technologies, putting the appropriate procedures and proposing related regulations, and coordinating with the competent entities to adopt them. The commission ensures a competitive environment and issues the required licenses according to the Kingdom's regulations and conditions.

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China’s October New Lending Tumbles More than Expected despite Policy Support

A masked woman walks at a fashion boutique displaying posters to promote Singles' Day discounts at a shopping mall in Beijing, Monday, Nov. 11, 2024. (AP)
A masked woman walks at a fashion boutique displaying posters to promote Singles' Day discounts at a shopping mall in Beijing, Monday, Nov. 11, 2024. (AP)
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China’s October New Lending Tumbles More than Expected despite Policy Support

A masked woman walks at a fashion boutique displaying posters to promote Singles' Day discounts at a shopping mall in Beijing, Monday, Nov. 11, 2024. (AP)
A masked woman walks at a fashion boutique displaying posters to promote Singles' Day discounts at a shopping mall in Beijing, Monday, Nov. 11, 2024. (AP)

New bank lending in China tumbled more than expected to a three-month low in October, as a ramp-up of policy stimulus to buttress a wavering economy failed to boost credit demand.

Chinese banks extended 500 billion yuan ($69.51 billion) in new yuan loans in October, down sharply from September and falling short of analysts' expectations, according to data released by the People's Bank of China (PBOC).

Economists polled by Reuters had predicted a fall in new yuan loans to 700 billion yuan last month from 1.59 trillion yuan the previous month and against 738.4 billion yuan a year earlier.

"Corporate financing demand remains weak due to poor profitability," said Luo Yunfeng, an economist at Huaxin Securities. "Credit demand may not pick up soon despite recent central bank policy measures."

The PBOC does not provide monthly breakdowns but Reuters calculated the October figures based on the bank's Jan-October data released on Monday, compared with the Jan-September figure.

The PBOC said new yuan loans totaled 16.52 trillion yuan for the first ten months of the year.

Household loans, including mortgages, dropped to 160 billion yuan in October from 500 billion yuan in September, while corporate loans dipped to 130 billion yuan from 1.49 trillion yuan, according to Reuters calculations based on central bank data.

Chinese policymakers have been working to arrest further weakness in an economy stuttering in recent months from a prolonged property market downturn and swelling local government debt.

Among their goals is to tackle the side-effects from a mountain of debt left from previous stimulus dating back to the 2008-2009 global financial crisis.

China's central bank governor Pan Gongsheng said China will step up counter-cyclical adjustment and affirm a supportive monetary policy stance, a central bank statement showed on Monday, citing a report Pan delivered to the top legislative body last week.

In late September, the central bank unveiled an aggressive stimulus package including rate cuts, and Chinese leaders pledged "necessary fiscal spending" to bring the economy back on track to meet a growth target of about 5%.

MORE STEPS ON THE CARDS

China unveiled a 10 trillion yuan debt package on Friday to ease local government financing strains and stabilize flagging economic growth, as it faces fresh pressure from the re-election of Donald Trump as US president.

New measures planned will include sovereign bonds issuance to replenish the coffers of big state banks, and policies to support purchase of idle land and unsold flats from developers, Finance Minister Lan Foan said.

Analysts at OCBC Bank expect the central bank to deliver another cut in banks' reserve requirement ratio in November or December to support the planned bond issuance.

China watchers are skeptical the steps will produce a near-term boost in economic activity as most of the fresh funds will be used to reduce local government debt, but China's central bank said it will continue supportive monetary policy to create a favorable monetary and financial environment for economic growth.

The PBOC also said it will study and revise money supply statistics to better reflect the real situation of the country's money supply.

Trump's election win could also prompt a stronger fiscal package in expectations of more economic headwinds for China. Trump threatened tariffs in excess of 60% on US imports of Chinese goods, rattling China's industrial complex.

Broad M2 money supply grew 7.5% from a year earlier, central bank data showed, above analysts' forecast of 6.9% in the Reuters poll. M2 grew 6.8% in September from a year ago.

Outstanding yuan loans grew 8.0% in October from a year earlier. Analysts had expected 8.1% growth, the same pace as in September.

The outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, slowed to a record low of 7.8% in October, from 8.0% in September. Acceleration in government bond issuance could help boost growth in TSF.

TSF includes off-balance sheet forms of financing that exist outside the conventional bank lending system, such as initial public offerings, loans from trust companies, and bond sales.

In October, TSF fell to 1.4 trillion yuan from 3.76 trillion yuan in September. Analysts polled by Reuters had expected TSF of 1.55 trillion yuan.