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Al-Jadaan: Reforms Will Lead Us to Bright Future in Financial Sector

Finance Minister Mohammed Al-Jadaan and Director General of the International Monetary Fund Kristalina Georgieva during a joint press conference in Washington (AFP)
Finance Minister Mohammed Al-Jadaan and Director General of the International Monetary Fund Kristalina Georgieva during a joint press conference in Washington (AFP)
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Al-Jadaan: Reforms Will Lead Us to Bright Future in Financial Sector

Finance Minister Mohammed Al-Jadaan and Director General of the International Monetary Fund Kristalina Georgieva during a joint press conference in Washington (AFP)
Finance Minister Mohammed Al-Jadaan and Director General of the International Monetary Fund Kristalina Georgieva during a joint press conference in Washington (AFP)

Saudi Minister of Finance and Chairman of the Financial Sector Development Program Committee, Mohammed Al-Jadaan, said that Saudi Arabia continues, under Vision 2030, “the ongoing process of economic development thanks to the financial and economic reforms that lead us towards a bright and developed future in the financial sector.”
He added that the Financial Sector Development Program seeks to achieve an economic and advanced future, by connecting the financial sector to the digital and technical economy, and exploiting modern technologies such as artificial intelligence and big data.
Al-Jadaan’s words came in the introduction of the annual report of the Financial Sector Development Program, one of the eleven executive programs launched by the Council of Economic and Development Affairs to achieve the goals of Vision 2030.
The program aims to develop and diversify the financial sector to support the development of the national economy, stimulate savings, financing and investment, and increase the sector efficiency and ability to confront and address challenges.
The finance minister stressed that his country maintained its progress in competitive indicators related to the financial market, ranking third among the most competitive countries in the G20, according to the Global Competitiveness Center of the International Institute for Administrative Development.
He added that the number of financial technology companies exceeded the targets of 2023, reaching 216, and approached the desired goal of 525 firms by 2030.
For his part, Minister of Investment Khaled Al-Falih said in the annual report of the Financial Sector Development Program that in light of geopolitical fluctuations, high financing costs, and strict monetary policies aimed at curbing high inflation rates, Saudi Arabia affirmed its commitment to its strategic vision and was able to adapt to the complexities of the global scene.
He added that the country moved forward with structural financial and economic reforms that resulted in lower inflation rates and enhanced the attractiveness of the investment climate, which in turn led to raising the Kingdom’s credit rating to A+.
Al-Falih noted that Saudi Arabia has also topped the Middle East and North Africa region in terms of the volume of venture investments, and witnessed a remarkable growth in the number of investment licenses for financial and insurance institutions.
Moreover, the minister said that the Ministry of Investment, in cooperation with various government agencies, contributed to attracting some of the most important international financial institutions to the Kingdom, enabling foreign direct investment in the insurance sector, and listing the first exchange-traded fund to track Saudi stocks on the Hong Kong Stock Exchange, in order to make the Kingdom a global financial hub.
Minister of Economy and Planning Faisal Al-Ibrahim said in the report that the achievements of the Financial Sector Development Program contributed to the growth of the volume of financial, insurance, and business services activities, by about 5.2 percent on an annual basis until the end of the third quarter of 2023.
The program’s efforts, led by the Central Bank and the Capital Market Authority, also helped increase the financing capacity of the Kingdom’s economy, thus supporting the objectives of the National Investment Strategy, he added.
Al-Ibrahim noted that the program works to support the diversification and development of investment financing sources through the financial market, and to attract foreign investment, through private financing channels affiliated with investment funds, in addition to the financing platforms of financial technology companies.
In the report, Governor of the Central Bank of Saudi Arabia, Ayman Al-Sayari, pointed out the continuation of initiatives aimed at developing regulatory frameworks and empowering the financial technology sector.
Those initiatives included issuing rules regulating postpaid companies, instructions for practicing digital brokerage activity, in addition to working to digitize supervisory procedures. He pointed out that the number of technology companies exceeded the 2023 targets, reaching 216.
The Chairman of the Capital Market Authority, Mohammad Al-Kuwaiz, said that in order to stimulate foreign investment, raise the attractiveness and efficiency of the financial market, and enhance its international competitiveness, the Kingdom adopted rules regulating foreign investment in securities, which helped increase the volume of foreign investments to SAR 401 billion ($106.9 billion).
The head of the Global Investment Finance Department at the Public Investment Fund (PIF), Fahd Al-Saif, stated that the Fund has a role in empowering small and medium-sized institutions, in order to increase their contribution to the domestic product, through the various efforts made by its portfolio companies.
He also revealed that the PIF seeks to raise the percentage of local content contribution in its projects and subsidiaries to 60 percent by the end of 2025.
For his part, the Chief Administrator of the National Development Fund, Khaled Al-Shareef, said that the Fund, through the Small and Medium Enterprises Bank, played an important role in developing the financial sector, by identifying needs and filling the financing gaps for various economic sectors, as well as improving the financing services provided to the SMEs.
According to the report, the Central Bank aspires to achieve a set of goals in 2024, including empowering local and international financial technology companies in the Saudi market, in addition to launching a number of digital banks, and a project for general rules for savings products.
As for the Capital Market Authority, it aims to increase the attractiveness of the Saudi market for foreign investors, and raise foreign investors’ ownership of the total market value of free shares to reach 17 percent by the end of this year.

 

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Business

Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)
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Saudi Arabia Boosts Firms’ Readiness for Supply Chain Challenges

Container ship at King Abdullah Port (SPA)
Container ship at King Abdullah Port (SPA)

Amid mounting geopolitical tensions threatening global supply chains, particularly disruptions in the Strait of Hormuz, Saudi Arabia is stepping up efforts to shield its economy by strengthening private sector readiness to withstand external shocks.

Asharq Al-Awsat has learned that the Federation of Saudi Chambers is moving to boost companies’ preparedness, unify procedures, and keep business flowing smoothly amid rising logistical risks.

The push underscores authorities’ focus on safeguarding the domestic market by helping businesses adapt quickly and strengthen operational resilience, supporting economic stability and sustained growth.

Future decisions

As part of efforts to bolster supply chain resilience, the Federation of Saudi Chambers is mapping challenges facing companies and national institutions, aiming to present the sector’s voice directly, build a clear picture of on-the-ground obstacles, and help shape future decisions.

It is tracking operational and logistical hurdles and turning them into inputs for relevant authorities to improve regulations and support market-based decision-making.

Improving the regulatory environment

The federation has asked companies to pinpoint challenges across ports, airports, logistics hubs, and warehouses, as well as those tied to regulators.

It urged firms to specify issues such as clearance or transit delays, procedural disruptions, added costs, lack of information, conflicting instructions, and regulatory requirements, along with their impact, whether financial or operational, including delivery delays, lost clients, suspended contracts, damaged cargo, and supply chain breakdowns.

The findings are expected to feed into regulatory improvements and more informed policymaking.

Alternative routes

Saudi Arabia has rolled out proactive logistics measures to reduce reliance on the Strait of Hormuz, including new corridors linking Gulf ports through alternative land and sea routes, Red Sea options, and additional shipping services to expand port capacity.

The Transport General Authority said licensed operators will be allowed to carry goods for third parties until Sept. 25, aiming to boost fleet efficiency and flexibility.

The authority said the step will help companies make better use of capacity, support supply chain continuity, and improve cargo movement within the kingdom and to neighboring countries.

On Thursday, it also approved regulatory updates extending deadlines for land freight firms to adjust their status, aiming to raise efficiency and compliance.

The extension covers heavy and light transport activities until Aug. 27, 2026, giving companies more time to meet regulatory requirements.

It also includes cases involving the reclassification of vehicle registration from private to public use in heavy freight, in a move to better regulate the sector and improve fleet utilization.

Business

War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)
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War Hits Lebanon Dollar Lifeline, Remittances Fall Sharply

Lebanon’s central bank (National News Agency)
Lebanon’s central bank (National News Agency)

A Lebanese mother described the sharp decline in one of her last sources of income, once a pillar of her financial stability, as remittances from her son abroad dwindled in the wake of the war.

“My son used to send me $600 a month. I lived on it, covered my medication and basic needs. After the war, the transfer does not exceed $200,” she told Asharq Al-Awsat.

Her account reflects a broader trend among Lebanese households, in which remittances from relatives abroad have dropped by 10% to 15% during the war. The conflict has left its mark on multiple countries, including Lebanon, driving inflation and creating obstacles to money transfers.

The financial situation was also discussed in a meeting between Lebanese President Joseph Aoun and central bank governor Karim Saeed, where current monetary and financial conditions, exchange rate stability, and precautionary measures to maintain liquidity were reviewed.

Rapid contraction and rising pressure

The issue has reached the government. Economy Minister Amer Bisat presented updated wartime estimates to the cabinet on Thursday, highlighting economic contraction and declining incomes driven by large-scale displacement, along with a notable rise in unemployment.

He cited sectoral and field studies showing deteriorating indicators, estimating the contraction at 7%-10%, coupled with slower inflows of funds into the country.

Bisat said the situation remains “relatively under control,” noting that the ministry continues to pursue cases of monopoly and fraud through dozens of reports, judicial referrals, and the seizure of non-compliant goods.

He warned that a prolonged war would heighten economic risks, describing inflation as a real challenge, while the balance of payments remains within acceptable limits.

Impact on daily life

The Lebanese mother told Asharq Al-Awsat: “I used to organize my life around the $600 my son sent me every month. I would pay for medication first, then cover household needs. Now I have to ration spending. I can no longer pay the electricity bill regularly.”

She added: “I buy smaller quantities of everything and postpone whatever I can. Sometimes I ask the pharmacy for medicine on credit. I never imagined I would reach this point.”

In the Bekaa Valley, Abu Mohammad described a similar experience: “My son used to send $400 a month, now it barely reaches $200.”

“I relied on that amount to cover rent and basic expenses. Now everything has changed. We live day to day on installments. We buy only the bare minimum and delay everything, rent, bills, even some essentials,” he said.

“Sometimes we sit together as a family to decide what we can pay this month and what to postpone. This did not exist before. Now it is part of our daily life.”

A shrinking economic backbone

Economist Walid Abou Suleiman said remittances have formed the “backbone of Lebanon’s economy since the 2019 crisis,” noting that the country relies heavily on them to secure foreign currency, as Lebanon imports about 85% of its consumer needs.

He told Asharq Al-Awsat that annual remittances are estimated at around $6 billion, including roughly $3 billion from Gulf countries, but have begun to decline, with at least a 5% drop recorded in the first month of the crisis.

“The impact of crises does not appear immediately; it builds gradually in the following months, meaning the decline is likely to worsen,” he said.

Hundreds of millions in losses

Abou Suleiman expects remittances to fall by 10% to 15%, equivalent to annual losses of between $450 million and $500 million, or about $40 million per month.

This decline is compounded by job losses among Lebanese expatriates in the Gulf, increasing domestic pressure as some return to Lebanon.

He added that the war has also affected other sources of foreign currency, particularly tourism. “Seasons that used to inject dollars into the market, such as Easter, have been absent this year,” he said, adding that rising global oil prices are worsening the crisis, as Lebanon is among the countries most affected by energy costs.

“The treasury is bearing additional burdens estimated at around 18% due to these increases,” he said.

Abou Suleiman warned that global inflation directly impacts Lebanon. “We do not only import goods, but we also import inflation with them, given the absence of local production and self-sufficiency,” he said, cautioning that the economic outlook will deteriorate further if the war continues.

Ongoing decline and uncertain outlook

Economist Professor Jassem Ajaka said remittances to Lebanon have recorded a notable decline, estimating a drop of around 5% last week, possibly rising to between 5% and 10% as conditions continue to evolve, with no precise figure due to constantly changing data.

He said the decline is logical, as Lebanese workers in the Gulf and Europe have also been affected by slowing economic conditions there.

“The crisis is no longer confined to one country or region; it is global, though its impact varies from place to place,” he said.

Ajaka stressed that remittances remain a key pillar, alongside tourism, which is largely driven by expatriates. “The tourism sector is almost entirely halted. The season can be considered lost, and even the upcoming summer season is not guaranteed. Recovery will not be quick, even if the war ends,” he said.

Tourism revenues were estimated at between $4 billion and $4.5 billion annually, making them a major source of foreign currency.

Exports are also expected to decline by around 10% due to damage to the agricultural sector in the south and Bekaa, as well as higher industrial production costs driven by rising oil prices.

Dollar inflows shrink, risks expand

Ajaka said remittances now represent the last line of resilience for many Lebanese families, but this pillar is weakening with the current decline.

He warned that the most serious consequence is a shortage of dollars in the market, raising questions about Lebanon’s ability to finance imports of fuel, food, and medicine.

A temporary solution could involve the central bank financing imports from its foreign currency reserves, he said, but this would amount to crisis management, with repercussions worsening the longer it continues.

He added that pressures are not limited to economic factors, but also include measures that restrict dollar inflows, further reducing liquidity in the market.

Business

Dollar Jumps as Trump Pledges More Iran Strikes

FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Jumps as Trump Pledges More Iran Strikes

FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: US dollar banknotes are seen in this illustration taken March 24, 2026. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar rose sharply on Thursday after US President Donald Trump's address on Iran shattered hopes for a swift end to the conflict, sending investors towards safe-haven assets as oil prices jumped and stocks tumbled.

In a televised speech, Trump vowed more aggressive strikes on Iran in the next two to three weeks, offering no concrete timeline to open the Strait of Hormuz or end a war that has rattled investors and roiled markets, Reuters reported.

Iran's military responded with a warning for the United States and Israel of "more crushing, broader and more destructive" attacks in store.

Investors were quick to sell riskier assets such as stocks and buy the US dollar, pushing the yen, euro and sterling lower.

The dollar index, which measures the greenback against a basket of currencies, climbed 0.68% to 100.24 as the safe-haven trade came back on, putting it on track for its best day since March 18.

Thursday's advance wiped out most of the greenback's declines from the past two days amid earlier optimism about de-escalating the Iran war, putting it on track for another winning week.

Stocks slid and oil prices surged, with Brent crude futures rising almost 8% to $109.10 per barrel, after Trump's address sparked fresh concerns about sustained disruption.

"Trump's comments failed to reassure markets ... markets are starting to realize that the war will probably escalate further from here before de-escalating," said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

"The dollar can definitely increase further from here against all the major currencies" as markets wake up to the fact that the global economy will slow down materially, she added.

Non-dollar currencies extended their falls as oil prices climbed in European trading.

The euro fell 0.66% to $1.1513 and sterling slid 0.88% to $1.319, both giving up some recent gains.

The risk-sensitive Australian dollar, commonly seen as a barometer of global growth expectations, fell 0.95% to $0.6863.

The Japanese yen traded 0.6% weaker at 159.72 per dollar , nearing the psychologically important 160 level that is viewed as the line in the sand for intervention by Japanese authorities.

Trump's comments also sent US Treasury yields higher on growing fears that inflation from higher oil prices would close the door to rate cuts.

That sets the stage for Friday's US non-farm payrolls report. The market is looking for a 60,000 rise in jobs for March, according to the median estimate of economists polled by Reuters.

"Another miss could rattle the markets and crank the volume up on the chorus warning about stagflation," said Kyle Rodda, senior financial market analyst at Capital.com.

"The markets could be extra choppy going into the Easter long weekend."