Sudan Conflict Deals New Blow to Stagnant Economy

Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
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Sudan Conflict Deals New Blow to Stagnant Economy

Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo
Sudanese residents shop in a bazaar in Khartoum, Sudan, May 4, 2019. REUTERS/Umit Bektas/File Photo

The conflict shaking Sudan has dealt a crippling blow to the heart of the country's economy in the capital Khartoum, as well as disrupting internal trade routes, threatening imports and triggering a cash crunch.

Across swathes of the capital factories, banks, shops and markets have been looted or damaged, power and water supplies have been failing, and residents have reported steep price rises and shortages of basic goods.

Even before the fighting between military factions broke out on April 15 Sudan's economy had been in deep stagnation following a crisis stretching back to the last years of Omar al-Bashir's rule and turmoil after his overthrow in 2019, Reuters said.

Tens of thousands have now fled the violence in Khartoum and its sister cities of Bahri and Omdurman, while millions more have sheltered at home as shelling and air strikes rattle across neighborhoods.

Transport of goods and people has slowed as troops and sometimes gangs roam the streets. Telecom networks have become unreliable and some say they have begun rationing food and water.

"We are afraid, and we are suffering from high prices, shortages, and lack of salaries. This is a war on the citizen," said Ismail Elhassan, an employee at one Khartoum business.

Sudan, already an important exporter of gum arabic, sesame, peanuts, and livestock, has the potential to be a major agricultural and livestock exporter and logistics hub.

But the economy has been held back by decades of sanctions and international isolation, as well as deep corruption. Most Sudanese have struggled with years of rampant inflation, sharp currency devaluations and sliding living standards. About a third of the 46 million population depends on humanitarian aid.

NO DRIVERS

The conflict has hampered trade flows in and out of the East African nation, since banking and customs procedures are centralized in Khartoum. While the country's main port on the Red Sea is operating, at least one big shipping company, Maersk, says it has stopped taking bookings until further notice.

Imports of wheat, key to Sudan's food security, are becoming more difficult, said one Khartoum-based trader. Imports of white goods such as refrigerators across the land border with Egypt, where tens of thousands of Sudanese have fled northwards, have also slowed, said Federation of Egyptian Chambers of Commerce secretary-general Alaa Ezz.

Michel Sidhom, a supply chain manager at a trading company operating in Egypt and Sudan, said its business in Sudan had "completely stopped" as exports of Egyptian fertilizers and flour, typically about 10,000 tons per month each, were halted.

Egypt, Sudan's second biggest destination for livestock, a key export, said it is looking to diversify its sources as a result of the unrest.

Sidhom says his company's traders in Sudan have left Khartoum, and no drivers are willing to risk transporting their goods to the capital city.

"They shut down and left Khartoum until further notice. Whoever stays in Khartoum stays in a battlefield," he said.

SCARCITY, HIGH PRICES

Shortages of items such as flour and vegetables have been reported in Khartoum along with price hikes. Long queues form in front of bakeries and supermarkets in the capital.

The price of one kilogram of lamb has jumped nearly 30% to 4,500 pounds ($7.52), according to a Reuters reporter, while the price of a kilogram of tomatoes doubled to 1,000 pounds ($1.67).

A supermarket owner in Omdurman blamed the inflation on soaring black market fuel prices. A gallon of scarce fuel can now cost as much as 40,000 pounds ($67), up from 2,000 pounds ($3.34).

Even in places where fighting has abated demand is low, said one Omdurman butcher. "Everyone's left," he said.

Sudan's pound has lost about 600% against the dollar since 2018, prompting many to save money in dollars.

Traders in Khartoum face a cash crunch, and people are increasingly dependent on an electronic wallet app known as Bankak, which often suffers outages, to pay bills.

The black market has become distorted, as relatives abroad seek to sell dollars for Bankak transfers, while those in the country seek dollars for safe keeping.

Currency traders offer dollars at rates as high as 700 pounds ($1.17), while buying at as little as 300 pounds ($0.5014), with prices varying widely as transport and communication becomes more difficult.

Sudan's central bank on Sunday said banks outside the capital were carrying out withdrawal and deposit transactions. Within Khartoum, the army and RSF have accused each other of looting banks. The head of one Khartoum bank said he was trying to temporarily move the bank's headquarters outside the capital.

Another executive said that in years of economic reforms, coups, and protests, "this is the biggest challenge to face the banking system, and threatens an almost complete shutdown," he said.

In the city of Atbara, north-east of Khartoum, crowds of people were seen outside of banks, some of which had imposed withdrawal limits.

"My cash has run out because I haven't received my salary and the banking apps don't work," said Elhassan, speaking from Khartoum.



Saudia Airlines Unveils Comprehensive Hajj Plan for 1.2 Million Pilgrims

The General Directorate of Passports assigns students who speak English, Spanish, Indonesian, Japanese, Persian, Urdu, Turkish and other languages to the airports in Jeddah and Madinah in order to facilitate communication and dealing with Hajj pilgrims. (SPA)
The General Directorate of Passports assigns students who speak English, Spanish, Indonesian, Japanese, Persian, Urdu, Turkish and other languages to the airports in Jeddah and Madinah in order to facilitate communication and dealing with Hajj pilgrims. (SPA)
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Saudia Airlines Unveils Comprehensive Hajj Plan for 1.2 Million Pilgrims

The General Directorate of Passports assigns students who speak English, Spanish, Indonesian, Japanese, Persian, Urdu, Turkish and other languages to the airports in Jeddah and Madinah in order to facilitate communication and dealing with Hajj pilgrims. (SPA)
The General Directorate of Passports assigns students who speak English, Spanish, Indonesian, Japanese, Persian, Urdu, Turkish and other languages to the airports in Jeddah and Madinah in order to facilitate communication and dealing with Hajj pilgrims. (SPA)

Saudia Airlines, the national carrier, has unveiled its operational plan for the upcoming Hajj season. The plan prioritizes the smooth transportation of over 1.2 million pilgrims by air, offering them exceptional service throughout their journey, according to SPA.
Starting May 9, Saudia Airlines will be operational for 74 days during the Hajj season, both for arrival and return journeys. It will leverage its fleet of over 150 modern aircraft to transport pilgrims from over 100 destinations across four continents.
To ensure a seamless experience, the airline has formed specialized work teams focused on performance monitoring, lounge operations, and coordination with other stakeholders. It has implemented an emergency plan in collaboration with relevant authorities and conducted virtual simulations at Jeddah and Madinah airports.
Pilgrims can arrive through five domestic airports: Jeddah, Madinah, Riyadh, Dammam, and Yanbu. Over 11,000 frontline employees and technicians will be dedicated to facilitating movement at these airports.
Saudia will continue its "Hajj without Luggage" service, handling 270,000 bags and distributing 240,000 bottles of Zamzam water.
The airline also collaborates on the Makkah Route Initiative, serving 120,000 pilgrims with dedicated flights.
Saudia employs staff fluent in over 30 languages spoken by pilgrims to bridge the language gap and the airline will offer a variety of in-flight meals catering to diverse dietary needs and announce the Miqat timings onboard.
Passengers can access informative programs on seatback screens. These programs feature awareness materials and Hajj guidance produced in cooperation with the Ministry of Hajj and Umrah. The resources, totaling 300,000 minutes of content, aim to simplify ritual procedures and regulations.
Saudia prioritizes accessibility for pilgrims with disabilities, providing wheelchairs, medical stretchers, and oxygen equipment on all flights.
The airline continues its luggage collection service at pilgrim residences for a hassle-free departure after completing their Hajj rituals.


Mawani Ports Handle 27 Million Tons of Cargo in April

Mawani Ports Handle 27 Million Tons of Cargo in April
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Mawani Ports Handle 27 Million Tons of Cargo in April

Mawani Ports Handle 27 Million Tons of Cargo in April

The ports of the Saudi Ports Authority (Mawani) recorded an increase in cargo throughput tonnage by 8.58% during April 2024, handling 27,107,961 tons, compared to 24,965,272 tons in the same month of 2023.

The number of handled containers reached 557,681 TEUs, a 19.54% decrease from 693,087 TEUs last year. Transshipment containers also decreased by 53.49%, reaching 123,194 TEUs, compared to 264,870 TEUs in 2023.
The number of exported containers recorded an increase of 3.72%, reaching 216,504 TEUs, compared to 208,741 TEUs in the same period of 2023, while the number of imported containers decreased by 0.68%, reaching 217,983 TEUs, compared to 219,476 TEUs last year, SPA reported.
The total general cargo reached 839,368 tons, solid bulk cargo reached 4,108,494 tons, and liquid bulk cargo reached 16,075,089 tons.
The ports recorded an unloading rate of 657,815 cattle heads, an increase of 43.54% compared to 458,280 cattle heads in the same period in 2023.
Maritime traffic decreased by 8.27%, reaching 910 ships compared to 992 ships in 2023. The number of passengers decreased by 35.85%, reaching 55,277 compared to 86,175 last year. The number of cars also decreased by 30.55%, reaching 69,788 compared to 100,480 cars in 2023.
Mawani has completed many development projects to enhance the infrastructure and operational capacities of the terminals and berths in the Kingdom's ports, equipping them with up-to-date equipment and machinery to ensure increased performance and productivity.
These efforts aim to provide investment opportunities for many beneficiaries of the services provided, in line with the National Transport and Logistics Strategy (NTLS) [targets] to solidify the Kingdom's standing as a global logistics hub bridging three continents.


Iran to Import No Wheat until March 2025

FILE PHOTO: A combine harvests wheat in a field near the town of Akkol, some 110 km (68 miles) north of the capital Astana October 11, 2011. REUTERS/Shamil Zhumatov
FILE PHOTO: A combine harvests wheat in a field near the town of Akkol, some 110 km (68 miles) north of the capital Astana October 11, 2011. REUTERS/Shamil Zhumatov
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Iran to Import No Wheat until March 2025

FILE PHOTO: A combine harvests wheat in a field near the town of Akkol, some 110 km (68 miles) north of the capital Astana October 11, 2011. REUTERS/Shamil Zhumatov
FILE PHOTO: A combine harvests wheat in a field near the town of Akkol, some 110 km (68 miles) north of the capital Astana October 11, 2011. REUTERS/Shamil Zhumatov

Iran will not import any wheat until March 2025 as it will rely on domestic production, the Iranian Student News Agency reported a deputy at the Agriculture Ministry saying on Thursday.

"Between March 2023 and March 2024, domestic production of wheat has reached 10.5 million tons and we only needed to import 1 million tons of wheat," Alireza Mohajer said, adding that the country expects to be self-sufficient in the production of wheat for this year.

Iran's domestic wheat output can vary widely depending on rainfall.

In some years Iran has been self-sufficient while droughts at other times have forced the country to import record high levels.
Domestic output levels fell as low as 4.5 million tons and imports rose as high as 7 million tons between March 2021 and March 2022, Mohajer said.

Between March 2022 and March 2023, domestic wheat output was 7.5 million tons while import were 3 million tons, he said.


Türkiye Cenbank Lifts Inflation Forecast, Pledges to Keep it Contained

Turkish President Recep Tayyip Erdogan arrives to speak at a presser after Friday noon prayer in Istanbul, Friday, May 3, 2024. (AP Photo/Khalil Hamra)
Turkish President Recep Tayyip Erdogan arrives to speak at a presser after Friday noon prayer in Istanbul, Friday, May 3, 2024. (AP Photo/Khalil Hamra)
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Türkiye Cenbank Lifts Inflation Forecast, Pledges to Keep it Contained

Turkish President Recep Tayyip Erdogan arrives to speak at a presser after Friday noon prayer in Istanbul, Friday, May 3, 2024. (AP Photo/Khalil Hamra)
Turkish President Recep Tayyip Erdogan arrives to speak at a presser after Friday noon prayer in Istanbul, Friday, May 3, 2024. (AP Photo/Khalil Hamra)

Türkiye's central bank nudged up its year-end inflation forecast to 38% on Thursday and governor Fatih Karahan said it would "do whatever it takes" to avoid any lasting deterioration in inflation as it maintains a tight monetary policy stance.
Presenting a quarterly inflation report, Karahan said annual inflation - which climbed to 69.8% in April - will peak this month at 75-76% after which a disinflation trend will take hold alongside cooling domestic demand.
The central bank raised its mid-point consumer price inflation (CPI) forecast for end-2024 to 38% from a previous 36%. Its forecast for end-2025 remains unchanged at 14%, while inflation is seen falling to 9% by the end of 2026.
Karahan said the central bank had raised its year-end forecast due to an unexpected additional 4 percentage-point rise in the first four months of the year.
The bank has aggressively raised rates by 4,150 basis points since last June but it kept the policy rate unchanged at 50% in April to allow its earlier monetary tightening, including a 500-point hike in March, to have an impact.
Karahan again pledged to tighten policy further if there is significant deterioration in inflation, which has soared for years, prompting a lingering cost-of-living crisis for Turks.
Analysts have said the bank has probably ended its nearly year-long tightening cycle, which marked a stark turnaround after years of unorthodox economic policy under President Recep Tayyip Erdogan, who in the past urged low rates despite rising prices.
A Reuters poll published last week showed inflation falling to 43.5% by the end of 2024. Central Bank Deputy Governor Cevdet Akcay said at Thursday's event that under the policy program it was not possible for inflation to end the year above 42%.
Karahan, who took the bank's reins in February, said leading indicators showed domestic demand was now following a more moderate trend than in the first quarter, and that the rate-hike cycle would cool demand more in the second half of the year.
At near 70%, annual inflation is the highest since late-2022.
The lira was mostly flat at 32.2325 to the dollar, near a record low, as the report was released.


Gold Little Changed with US Economic Data on Tap

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
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Gold Little Changed with US Economic Data on Tap

FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa
FILED - 16 March 2023, Bavaria, Munich: Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum. Photo: Sven Hoppe/dpa

Gold prices were little changed on Thursday as investors awaited US economic data including weekly jobless claims numbers that could offer more cues on when the Federal Reserve would deliver its interest rate cuts.
Spot gold was steady at $2,310.47 ounce, as of 0730 GMT. US gold futures lost 0.2% to $2,317.30.
The US weekly jobless claims data is due at 1230 GMT and the University of Michigan's consumer sentiment reading on Friday. The consumer price index data is scheduled to be released next week.
"Despite market expectations of a rate cut in September, gold traders are cautious about making big moves... If the US inflation report comes hotter, then prices could fall to $2,290," said Ajay Kedia, director at Kedia Commodities, Mumbai.
According to the CME's FedWatch Tool, traders are currently pricing in about a 66% chance of a Fed rate cut in September. Lower rates reduce the opportunity cost of holding bullion.
Fed Bank of Boston President Susan Collins said on Wednesday that the US economy needs to cool off to get inflation back to the central bank's 2% target.
"Looking ahead to the rest of 2024, the outlook for gold remains relatively positive," ACY Securities analyst Luca Santos said.
"There's even potential for it to break above $2,500, especially if economic conditions remain uncertain and geopolitical tensions persist."
Palestinian group Hamas said on Wednesday it was unwilling to make more concessions to Israel in negotiations over a ceasefire for Gaza.
China's exports and imports returned to growth in April, signaling an encouraging improvement in demand at home and overseas.
Spot silver gained 0.9% to $27.60 per ounce.
"Long-term view on silver remains positive. It can climb to $30 in the fourth quarter," Kedia said.
Platinum advanced 0.8% to $979.65 and palladium firmed 0.1% to $952.43.
Autocatalyst maker Johnson Matthey said the platinum market faces its largest supply shortfall in 10 years in 2024.


Oil Rises on US Crude Storage Draw, China Imports Show Year-on-year Gain

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
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Oil Rises on US Crude Storage Draw, China Imports Show Year-on-year Gain

Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)
Pump jacks operate in front of a drilling rig in an oil field in Midland, Texas US August 22, 2018. (Reuters)

Oil prices rose on Thursday as falling US crude inventories amid rising refinery intake and a year-on-year increase in Chinese imports last month supported higher demand expectations for the world's two largest crude consuming nations.
Brent crude futures for July rose 27 cents, or 0.3%, to $83.85 a barrel by 0650 GMT. US West Texas Intermediate crude for June was up 34 cents, or 0.4% to $79.33 per barrel.
"Oil markets were buoyed by a larger-than-expected draw in the US inventory data. The improved China's trade balance data added to the upside momentum," said Tina Teng, an independent market analyst, adding that crude prices may continue to track economic factors looking ahead.
Crude inventories in the US, the world's biggest oil user, dropped last week by 1.4 million barrels to 459.5 million barrels, according to the Energy Information Administration, more than analysts' expectations for a 1.1 million-barrel draw. Stockpiles fell as refinery activity increased by 307,000 barrels per day (bpd) in the period.
This caused gasoline stocks to swell by more than 900,000 barrels to 228 million barrels, while distillate stockpiles including diesel and heating oil rose by 600,000 barrels to 116.4 million barrels.
"The market shrugged off the builds in gasoline and distillate fuels as refiners ramp up for the upcoming driving season," analysts at ANZ Research said in a note on Thursday.
Shipments of crude in April to China, the world's biggest oil importer, were 44.72 million metric tons, or about 10.88 million bpd, according to China's customs data released on Thursday. That was up 5.45% from the relatively low 10.4 million bpd imported in April 2023.
Hopes for a ceasefire in the Israel-Hamas conflict Gaza kept oil prices from moving higher. The US said earlier in the week that negotiations should be able to close the gaps between Israel and Hamas.
"While there may be some short-term relief for oil prices, it may be difficult to return to April's high above the $90 per barrel level, where geopolitical tensions were at its peak," said Yeap Jun Rong, market strategist at IG.


Saudi Banks Profit from Rising Lending, Deposit Volumes

One of the traders monitors the performance of stocks in the financial market (AFP)
One of the traders monitors the performance of stocks in the financial market (AFP)
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Saudi Banks Profit from Rising Lending, Deposit Volumes

One of the traders monitors the performance of stocks in the financial market (AFP)
One of the traders monitors the performance of stocks in the financial market (AFP)

Financial analysts connect the 8.2% increase in net profits for Saudi banks in the first quarter of 2024 to strong lending, higher demand for loans, and increased deposits.

They point out that rising interest rates in recent years have boosted bank profits, especially from long-term loans with fluctuating interest rates.

By the end of the first quarter of 2024, the top 10 Saudi banks listed on the Saudi stock market (Tadawul) saw their combined net profits rise by 8.2 percent, reaching about 18.65 billion Saudi riyals ($5 billion).

This marks an increase of approximately 1.41 billion Saudi riyals ($376 million) compared to the same period in 2023, when net profits totaled 17.24 billion Saudi riyals ($4.6 billion).

In their financial reports on the Saudi stock market, Al Ahli Bank, also known as the Saudi National Bank (SNB), grabbed about 27% of total bank profits.

Their profits saw a slight uptick of 0.36%, reaching SAR5.04 billion compared to SAR5.022 billion in the same quarter last year, with an increase of SAR 18 million.

Al-Rajhi Bank came in second, marking its highest quarterly profits since its inception at SAR4.41 billion, a 6.27% increase from the previous year’s SAR4.15 billion in the first quarter.

Riyad Bank secured third place with profits of SAR2.07 billion in the first quarter of 2024, up by 2.63% from the same period in 2023.

Moreover, Bank Aljazira recorded the most significant growth rate in the quarter, soaring over 47%, with profits hitting SAR300 million compared to last year’s SAR204 million in the same period.

Discussing the rise in net profits of Saudi banks, financial analyst Abdullah Al-Kathiri credited it to their early expansion in lending and financing during years of low interest rates.

Speaking to Asharq Al-Awsat, Al-Kathiri highlighted the banks’ focus on long-term loans and mortgages tied to variable rates, which brought in high profits.

He also noted a recent surge in deposits across all banks, leading to increased lending. Al-Kathiri mentioned that many banks have exceeded the regulatory limit of 90% of deposits, some even reaching 105%.

To manage this, some banks increased their capital and issued bonds.


Opening of European Chamber in Riyadh Signals New Partnership Era

The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) was inaugurated in Riyadh on Wednesday.
The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) was inaugurated in Riyadh on Wednesday.
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Opening of European Chamber in Riyadh Signals New Partnership Era

The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) was inaugurated in Riyadh on Wednesday.
The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA) was inaugurated in Riyadh on Wednesday.

The European Chamber of Commerce in the Kingdom of Saudi Arabia (ECCKSA)  officially opened its doors in Riyadh on Wednesday, marking a new phase in trade and economic cooperation between Saudi Arabia and the EU.
The launch event was attended by distinguished guests, including Ibrahim Al-Mubarak, assistant minister of investment; Luigi Di Maio, EU special representative for the Gulf; and Christophe Farnaud, the EU ambassador to Saudi Arabia, Oman, and Bahrain.
Al-Mubarak highlighted how ECCKSA’s initiatives in Saudi Arabia align with the Kingdom’s national transformation plan, Vision 2030, focusing on creating new opportunities in non-oil sectors.
He noted that ECCKSA’s establishment will boost trade, investment, and cross-border cooperation, supporting the Kingdom’s economic diversification efforts.
Al-Mubarak also mentioned that over 300 European companies have been licensed to move their regional headquarters to Riyadh, with a target of attracting 480 such companies by 2030.
He added that foreign direct investment from Europe has doubled to around SAR 218.5 billion over the past five years.
On his part, Di Maio said that the establishment of the ECCKSA marks an important new chapter in the partnership between the EU and Saudi Arabia.
“I am convinced that this initiative will be key in bringing closer and in integrating our economies. The ECCKSA will certainly become a point of reference for European companies doing business in the Kingdom and Saudi companies looking for partners and markets in the EU,” said Di Maio.
“It will facilitate joint ventures and boost trade and investments. There is so much untapped potential and space to grow in our economic cooperation and I am confident that the next months and years will bring about more substantive and sustainable progress,” Di Maio added.
Apart from his prediction that the chamber would become a hub for European companies in Saudi Arabia, Di Maio stressed that it would help strengthen business connections and support Saudi Arabia’s economic diversification efforts under Vision 2030.


Egypt's Annual Urban Consumer Price Inflation Decreased to 32.5% in April

A man counts Egyptian notes outside bank in Cairo, Egypt October 24, 2016. REUTERS/Mohamed Abd El Ghany
A man counts Egyptian notes outside bank in Cairo, Egypt October 24, 2016. REUTERS/Mohamed Abd El Ghany
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Egypt's Annual Urban Consumer Price Inflation Decreased to 32.5% in April

A man counts Egyptian notes outside bank in Cairo, Egypt October 24, 2016. REUTERS/Mohamed Abd El Ghany
A man counts Egyptian notes outside bank in Cairo, Egypt October 24, 2016. REUTERS/Mohamed Abd El Ghany

Egypt's annual urban consumer price inflation rate decreased to 32.5% in April from 33.3% in March, slowing slightly more than analysts had expected, data from the country's statistics agency CAPMAS showed on Thursday.
Month-on-month, prices rose by 1.1% in March, up from 1.0% in February. Food prices declined in March by 0.9%, though they were 40.5% higher than a year ago.
A poll of 17 analysts had expected annual inflation to dip to a median 32.8%, continuing a slowing trend that started in September, when inflation reached a peak of 38.0%.
The central bank has tightened its monetary policy, hiking interest rates by 600 basis on March 6, the same day it signed a $8 billion financial support package with the International Monetary Fund and let the currency plummet.
Egypt promised the IMF in the March agreement it would resume tightening if necessary to prevent further erosion of the purchasing power of households.
The government last month also increased the price of a range of petrol, diesel and other fuels, part of a commitment made to the IMF.
Inflation has been elevated for the past year, driven largely by rapid growth in the money supply.


Saudi Market: Strict Penalties Target Financial Manipulators

Since last year, the Saudi Arabian Capital Market Authority (CMA) has fined 39 investors with fines exceeding SAR 403 million (Asharq Al-Awsat)
Since last year, the Saudi Arabian Capital Market Authority (CMA) has fined 39 investors with fines exceeding SAR 403 million (Asharq Al-Awsat)
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Saudi Market: Strict Penalties Target Financial Manipulators

Since last year, the Saudi Arabian Capital Market Authority (CMA) has fined 39 investors with fines exceeding SAR 403 million (Asharq Al-Awsat)
Since last year, the Saudi Arabian Capital Market Authority (CMA) has fined 39 investors with fines exceeding SAR 403 million (Asharq Al-Awsat)

Since its establishment in 2003, the Saudi Arabian Capital Market Authority (CMA) has been focused on protecting investors and creating a favorable investment atmosphere to boost confidence in the securities market.

This commitment is reflected in its ongoing efforts to track down and penalize those who have unlawfully profited from investment activities.

From 2023 to the end of May this year, the authority fined 39 investors a total of over 403 million Saudi riyals ($107.5 million). Last year, there were 17 violators, but in the first five months of this year, the number increased to 22.

Dr. Ahmed Al-Tamimi, a licensed lawyer specializing in securities and founder of “Al-Madina Law and Legal Consultancy Firm,” explained to Asharq Al-Awsat how investors break the rules and what punishments they face.

Al-Tamimi explained that manipulating stock prices by spreading false information or rumors is against Article 49 of the Capital Market Law and Articles 2, 3, and 8 of the Market Conduct Regulations.

The regulations prohibit anyone from intentionally creating a false impression about the market, prices, or value of a security to influence others to buy, sell, or refrain from trading that security.

Al-Tamimi highlighted actions like placing orders or trades on a security to create a false impression of trading activity or interest. This includes using technology to automate orders based on preset instructions.

He also mentioned tactics like setting predetermined prices for buying or selling, influencing opening or closing prices, and affecting the prices of other securities.

Al-Tamimi clarified that investors break rules by spreading rumors. This means sharing false information or opinions to manipulate the price or value of a security, whether it’s their own statement or someone else's.

He explained that trading with insider knowledge is covered by Article 50 of the Capital Market Law and Articles 4, 5, and 6 of the Market Conduct Regulations.

This involves information related to a security that could significantly impact its price or value if made public.

It’s against the rules for those with access to such information to trade or share it with others who might trade in the affected security.

According to Article 50, anyone with insider info due to family, work, or contracts (called the informed person) can’t trade or share that info expecting others to trade.

Al-Tamimi noted that the CMA not only directly protects citizens and investors but also sets up defenses.

According to Article 11 of the Market Conduct Regulations, financial institutions and registered individuals can't accept or execute orders if they suspect manipulation or insider trading.

They must notify the authority within three days if they reject an order. If suspicions arise after accepting an order, they must notify within three days of discovering the reasons. The authority also encourages reporting violations by offering financial rewards to whistleblowers for their protection.

Al-Tamimi explained that investors face penalties for actions like market manipulation, spreading rumors, or trading with insider information.

Penalties range from warnings to fines three times the gains made or losses avoided due to the violation, along with potential imprisonment for up to five years.

Moreover, Al-Tamimi warned investors against ignorance of market regulations, as it doesn’t excuse them from responsibility, especially if they manage their portfolios without proper authorization.

He also noted that affected investors can file complaints with the CMA and seek compensation through the Securities Dispute Resolution Committee.

Al-Tamimi stressed the CMA’s commitment to protecting citizens and investors from unfair or fraudulent practices in securities trading.