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Saudi Riyal Added to Buna Settlement Currency

A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal notes at a currency exchange shop in Riyadh, Saudi Arabia, March 10, 2020. (Reuters)
A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal notes at a currency exchange shop in Riyadh, Saudi Arabia, March 10, 2020. (Reuters)
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Saudi Riyal Added to Buna Settlement Currency

A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal notes at a currency exchange shop in Riyadh, Saudi Arabia, March 10, 2020. (Reuters)
A Saudi money exchanger wears a protective face mask and gloves as he counts Saudi riyal notes at a currency exchange shop in Riyadh, Saudi Arabia, March 10, 2020. (Reuters)

The Saudi Central Bank and the Arab Monetary Fund (AMF) announced on Thursday the inclusion of the Saudi riyal as a settlement currency in Buna, the regional cross-border payment system owned by the AMF.

The National Commercial Bank (NCB) has been assigned as a settlement bank for the Saudi currency.

The NCB has been awarded this role as by the terms of the agreement signed with Buna and has completed all the required technical tests and integration process to provide transaction services in Saudi riyal through Buna’s platform.

The Saudi riyal is the third Arab settlement currency to join Buna’s payment platform, following the inclusion of the UAE dirham and Egyptian pound consecutively.

This milestone comes in line with Buna’s ongoing efforts to build its network of participant banks, as well as Arab and International currencies.

Commenting on the announcement, AMF Director General and Chairman of its board Dr. Abdulrahman al-Hamidy said adding the Saudi riyal to Buna’s list of settlement currencies represents additional solid proof of the added value that our multi-currency platform can bring not only at regional level, but to the global payment industry.

“We are on the right track to realize our strategic goal of adding key currencies to our platform in a consistent and sustainable pattern.”

“The long-term value that we are bringing to the payment industry in this part of the world, is not limited to our diversified and agile payment system but as well to our ability to explore the region needs for a multi-currency and centralized platform that can offer modern payment solutions that comply with international standards in a safe, cost- effective, risk-controlled and transparent environment,” Hamidy added.

The Saudi riyal is one of the most used currencies in cross-border payment transactions across the Arab region.

Therefore, the inclusion of this major regional currency in Buna regional payment platform is key in realizing Buna’s vision to empower Arab economies and promote regional integration by encouraging the usage of Arab currencies in cross-border payments and investments.

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Business

Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half

A SABIC manufacturing site in Jubail (SABIC Media Center) 
A SABIC manufacturing site in Jubail (SABIC Media Center) 
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Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half

A SABIC manufacturing site in Jubail (SABIC Media Center) 
A SABIC manufacturing site in Jubail (SABIC Media Center) 

Net losses at nine petrochemical companies listed on the Saudi Exchange fell by more than 50% in the first half of 2026 to SAR 1.7 billion ($452.8 million), from about SAR 3.4 billion ($908.5 million) a year earlier.

The improvement reflected stronger operating efficiency, better results from some associates and joint ventures, and lower losses from discontinued operations and asset impairments. Companies also faced pressure from weaker equity investments, higher average costs for some production inputs and lower sales volumes due to supply-chain disruptions.

Four companies posted net profits — SABIC Agri-Nutrients, Yansab, Saudi Industrial Investment Group and Alujain — while Advanced Petrochemical, Sipchem, SABIC, Tasnee and Saudi Kayan reported losses.

SABIC Agri-Nutrients posted the sector’s highest profit at about SAR 1.6 billion, down 21.4% from SAR 2.04 billion a year earlier. The company attributed the decline to lower sales volumes caused by supply-chain challenges and weaker results from an associate and a joint venture, partly offset by higher average selling prices for most products.

Yansab ranked second, with profit surging 363% to SAR 270 million from SAR 58.2 million, supported by higher selling prices and strong plant reliability. Saudi Industrial Investment Group’s profit rose 410% to SAR 194 million.

Saudi Kayan recorded the largest loss at SAR 1.29 billion, compared with SAR 1.27 billion a year earlier. Tasnee lost SAR 889.1 million and SABIC SAR 820 million.

Combined second-quarter losses for the nine companies fell 42.17% to SAR 2.07 billion from SAR 3.58 billion a year earlier.

G. World CEO Mohamed Hamdy Omar told Asharq Al-Awsat that performance varied according to product mix, petrochemical feedstock costs, production and sales volumes, operating efficiency and exposure to global markets and supply-chain disruptions.

He noted that SABIC’s losses narrowed sharply from SAR 4.07 billion to SAR 833 million, but said much of the improvement reflected the non-recurrence of provisions and impairment charges rather than an equivalent recovery in underlying operations.

SABIC Agri-Nutrients, meanwhile, remained among the sector’s most profitable companies, although second-quarter profit fell 64.2% to SAR 379 million because of lower sales volumes, supply-chain disruptions and weaker contributions from an associate and joint venture.

Omar expects a gradual but uneven recovery in the second half, with global demand, feedstock and energy costs, excess capacity, shipping disruptions and geopolitical tensions remaining key factors. He said sustainable improvements in operating margins, sales volumes and cash flow would provide the clearest evidence of a genuine sector recovery.

 

 

Business

Saudi Inflation Holds Steady at 1.8% Despite Global Commodity Market Turmoil

A grocery store in Saudi Arabia (SPA)
A grocery store in Saudi Arabia (SPA)
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Saudi Inflation Holds Steady at 1.8% Despite Global Commodity Market Turmoil

A grocery store in Saudi Arabia (SPA)
A grocery store in Saudi Arabia (SPA)

Saudi Arabia’s inflation remained subdued in July at 1.8% year on year, reflecting continued overall price stability despite housing and rents remaining the main source of inflationary pressure.

Data released Thursday by the General Authority for Statistics (GASTAT) showed prices for housing, water, electricity, gas and other fuels rose 4.2%, driven by a 4.3% increase in actual housing rents. Food and beverages increased 1.5%, while transport rose 1.4%.

The figures show that inflation remains concentrated in a limited number of categories rather than reflecting broad-based price increases. Saudi Arabia is among the G20 economies with relatively low inflation.

King Abdulaziz University economics professor Salem Baajajah told Asharq Al-Awsat that the 1.8% rate was “a positive reading for the economy, particularly given continuing global inflationary pressures.”

Increases are concentrated largely in housing and rents rather than spreading across the consumer basket, he said.

Economist Ahmed Al-Shahri cautioned that the figure should not be viewed as evidence that price pressures had disappeared, particularly with continued housing demand in major cities.

“The challenge in the coming period will not only be controlling overall inflation, but ensuring that pressures in the housing sector do not develop into a broader wave extending to other spending categories,” he stated.

Housing was the largest driver of inflation in July. Personal care, social protection and miscellaneous goods and services rose 2.9%, driven by an 11.1% increase in other personal effects, while jewelry and watch prices rose 12%. Recreation, sport and culture increased 2.4%.

By contrast, furnishings, household equipment and routine household maintenance declined 0.5%, while clothing and footwear fell 0.4%, helping contain overall inflationary pressures.

Food and beverages contributed 0.3 percentage point to overall inflation, while transport and personal care, social protection and miscellaneous goods and services each contributed 0.2 percentage point.

On a monthly basis, consumer prices rose 0.2% in July from June. Housing, water, electricity, gas and other fuels increased 0.9%, driven by a 7.1% rise in electricity, gas and other fuels. Restaurants and accommodation services rose 0.5%, recreation, sport and culture 0.4%, and transport 0.2%.

Business

Oil Rises after US Threatens Indefinite Blockade of Iran

Gas prices are seen listed as motorists make their way durig the evening commute in Monterey Park, California, on August 13, 2026. (Photo by Frederic J. BROWN / AFP)
Gas prices are seen listed as motorists make their way durig the evening commute in Monterey Park, California, on August 13, 2026. (Photo by Frederic J. BROWN / AFP)
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Oil Rises after US Threatens Indefinite Blockade of Iran

Gas prices are seen listed as motorists make their way durig the evening commute in Monterey Park, California, on August 13, 2026. (Photo by Frederic J. BROWN / AFP)
Gas prices are seen listed as motorists make their way durig the evening commute in Monterey Park, California, on August 13, 2026. (Photo by Frederic J. BROWN / AFP)

Oil prices gained on Friday after the United States threatened an indefinite naval blockade of Iran, reviving concerns about supply of crude after the previous session's fall on a weaker outlook for demand and a large build in US stocks.

Brent futures rose 90 cents, or 1.03%, to $87.97 a barrel by 0653 GMT, while US West Texas Intermediate (WTI) crude futures rose 91 cents to $82.16 a barrel, Reuters reported.

The benchmarks were on track for weekly rises of about 4% after the prior session's fall of more than 2%, paring gains following Brent's six-session rally and a five-session rise for WTI.

"Despite the bearish crude stock data, the ⁠broader geopolitical backdrop is ⁠preventing a sharper price decline," Susan Bell, senior vice president for oil commodity markets at Rystad Energy said in a note.

On Thursday, the United States warned that it could maintain a naval blockade of Iran indefinitely and ramp up economic pressure on Tehran as ceasefire talks have stalled.

"Watch this space for more announcements coming next week because we are going to apply ⁠measures like have never been seen in the history of economic isolation of a country," Treasury Secretary Scott Bessent told Newsmax's "Rob Schmitt Tonight" program in an interview.

The latest US threats come as Iran curbs flows through the Strait of Hormuz, which carried 20% of the world’s oil before the conflict, driving up fuel prices and putting pressure on President Donald Trump to end a war that is unpopular at home.

The strait is "under the management and control of the Islamic Republic", however, the recently appointed head of Iran's Basj paramilitary unit, Hossein Taeb, has said, according to the semi-official Fars ⁠news.

The prospect ⁠of a longer war hitting supply was offset this week by forecasts from OPEC and the International Energy Agency lowering outlooks for demand growth, while data showed the largest weekly gain in US crude stocks for more than 3-1/2-years.

Two vessels from the state-owned Abu Dhabi National Oil Company were attacked transiting the Strait of Hormuz on Thursday, said UAE state news agency WAM, an incident the United Arab Emirates government condemned as an Iranian attack.

Elsewhere, Russian authorities quickly cleared up damage on Friday after a fire at the Baltic Sea port of Ust-Luga, a major hub for oil exports, was triggered by a Ukrainian drone attack, regional governor Alexander Drozdenko said.