Saudi Arabia

Saudi Arabia’s central bank has stepped up the use of a mechanism to pump money into the financial system as it looks to tackle a liquidity crunch that has helped push borrowing costs for lenders to the highest in decades, Bloomberg News reported. The latest intervention is relying on open market operations, the people said, transactions that allow the central bank to provide or drain short-term liquidity in exchange for securities from lenders. Unusually for a period of high oil prices, Saudi banks are facing a shortage of liquidity.
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Saudi Arabia's crown prince on Sunday launched an initiative to attract investments in supply chains to and from the kingdom, with an aim of raising an initial 40 billion riyals ($10.64 billion), Reuters reported. The initiative by Prince Mohammed bin Salman will include allocating about 10 billion riyals in incentives for supply chain investors, state news agency SPA reported, without elaborating.
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Saudi Arabia is selling bonds and Islamic securities, while offering to buy back as much as $15.5 billion of debt, Bloomberg News reported. The world’s biggest oil exporter plans to sell sukuk maturing in six years and bonds due in 10, both denominated in dollars. At the same time, Saudi Arabia asked holders of its bonds due in 2023, 2025 and 2026 to tender their notes for purchase by the kingdom for cash. It will announce the maximum acceptance amount after the pricing of the new securities.
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Saudi Arabia announced a spending boost that will sharply narrow next year’s budget surplus as it looks to tackle the impact of inflation and use its oil windfall to accelerate the development of economic diversification projects, Bloomberg News reported. The kingdom’s Finance Ministry said in a preliminary budget statement on Friday that it expects a surplus of 9 billion riyals ($2.4 billion) next year, or 0.2% of gross domestic product -- smaller than an earlier estimate of 27 billion riyals.
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Saudi Arabia and other Gulf states flush with oil revenue are coming to the rescue of crisis-racked neighbors such as Egypt, Pakistan and Turkey, doubling down on a diplomatic tool they long used to build influence throughout the region, the Wall Street Journal reported. Saudi Arabia, Qatar and the United Arab Emirates have pledged more than $22 billion this year to Egypt as the country seeks to stave off default.
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Saudi Arabia raised oil prices for buyers in Asia to record levels, a sign the world’s largest exporter sees the region’s market remaining tight, Bloomberg News reported. Despite indications that slowing economies are starting to hit global demand for crude, state producer Saudi Aramco increased its Arab Light grade for next month’s shipments to Asian refineries to $9.80 a barrel above the Middle Eastern benchmark. That’s 50 cents more than in August. Still, traders and refiners had expected a bigger jump of $1.50, according to a Bloomberg survey in late July.
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Saudi Arabia, the world's top oil exporter, raised July crude oil prices for Asian buyers to higher-than-expected levels amid concerns about tight supply and expectations of strong demand in summer, Reuters reported. The official selling price (OSP) for July-loading Arab Light to Asia was hiked by $2.1 a barrel from June to $6.5 a barrel over Oman/Dubai quotes, just off an all-time-high recorded in May. That was much higher than most market forecasts for an increase around $1.5. Only one respondent of six in a Reuters poll had predicted a jump of $2.
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Saudi Arabia's economy grew by 9.6% in the first quarter of 2022, compared to a year earlier, according to flash government estimates on Sunday, as a recovery in the oil sector drove the strongest growth in more than a decade, Reuters reported. During the first quarter, oil activity in Saudi Arabia increased by 20.4% and non-oil activity by 3.7%, the estimates showed.
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Saudi Arabia's consumer price index rose 2% in March from a year earlier on the back of rising transport and food costs, increasing for the seventh consecutive month, government data showed on Thursday, Reuters reported. Food and beverages rose 3% compared to a year earlier, driven by a 2.4% rise in meat prices and 9.4% in vegetable prices, the General Authority for Statistics said in a statement.
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An exodus of foreign workers from Saudi Arabia started to reverse after a year and a half as the economy recovers from the pandemic and oil prices rally, Bloomberg News reported. The private sector added more than 250,000 jobs for non-Saudis, according to fourth-quarter data released on Wednesday by the kingdom’s General Authority for Statistics. Citizens also benefited, with more than 83,000 jobs added for Saudis in the private sector and nearly 24,000 in government. Unemployment among nationals dropped to 11%, the lowest level since 2009.
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