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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Bloomberg: Saudi Arabia will pay for the failure of the big shift

    Rocky
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    • Post n°1

    Bloomberg: Saudi Arabia will pay for the failure of the big shift Empty Bloomberg: Saudi Arabia will pay for the failure of the big shift

    Post by Rocky Thu 19 Oct 2017, 2:38 am

    [size=30]Bloomberg: Saudi Arabia will pay for the failure of the big shift[/size]
    19/10/2017 10:29 | Number of readings: 1
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    Bloomberg: Saudi Arabia will pay for the failure of the big shift Thumbnail.php?file=saudi_stock_840333619
    [rtl]Trend Press / Agencies[/rtl]
     
    [rtl]The consequences of the failure of the big transformation in Saudi Arabia will be prohibitive, and contrary to past experience, the possibility of saving oil prices for the "stunted" economy seems slim, the Bloomberg news agency said.[/rtl]
    [rtl]The crisis with Qatar, Yemen, Syria and Iraq is hampering the shift in Saudi Arabia and threatens not to achieve sustainable development, the agency quoted Turki al-Rasheed, a Saudi businessman, as saying.[/rtl]
    [rtl]"Two years into the reform drive, Saudi officials have been confronted with thorny issues of how to save money and accelerate social change without paralyzing the economy and engaging the conservative religious establishment," she said.[/rtl]
    [rtl]The Saudi government announced late last July that it had borrowed 51 billion riyals ($ 13.6 billion) from the local market by issuing government bonds, which were first put in Saudi riyals, to cover the budget deficit.[/rtl]
    [rtl]A recent report by the Middle East A website, the Saudi Vision 2030, aims to diversify Saudi sources of income.[/rtl]
    [rtl]The report cited the reasons for this forecast, including the difficulty of stopping Saudi dependence on oil, and the problems that will face the trend to sell huge property to finance investment projects.[/rtl]
    [rtl]Bloomberg said in a previous report on Oct. 3 that Saudi officials leading the efforts to prepare the kingdom for the post-oil era were unlikely to pay much attention to the reason behind the stagnation of the local economy for two consecutive quarters, for the first time since 2009.[/rtl]
    [rtl]The report pointed out that the Saudi economy shrank at an annual rate of 1% in the second quarter of this year, compared to another contraction by 0.5% during the first quarter.[/rtl]
    [rtl]He described the results as not surprising at a time when members of the Organization of Petroleum Exporting Countries (OPEC) cut production ceiling to support prices.[/rtl]
    [rtl]The report says that the concern of a number of economic analysts is to achieve the non-oil sector in the Kingdom growth of only 0.6%, reflecting the effects of reducing government spending and low consumer spending.[/rtl]
    [rtl]According to economist at Bloomberg Intelligence Ziad Daoud, this rate remains insufficient to compensate for the impact of lower oil revenues or reduced unemployment rates in the Kingdom.[/rtl]
    [rtl]There has been little momentum in the non-oil sector, where it has stagnated at less than 1%, he said, noting that the performance of the sector has been closely linked to oil prices, while decoupling should be the main priority for Saudi policymakers.[/rtl]
    [rtl]According to the Bloomberg report, the latest data showed that Saudi companies and consumers are still struggling to counter the effects of government austerity policies, while private sector activity grew by 0.4% in the second quarter, from 0.9% in the previous quarter.[/rtl]
    [rtl]In addition to the stagnation of the Saudi economy, the construction sector contracted in the second quarter by 1.6% after a contraction of 3% in the first quarter, the report said.[/rtl]
    [rtl]Saudi Arabian Monetary Agency (SAMA) data on September 29 showed that Saudi Arabia's foreign reserves fell in August to their lowest level since April 2011.[/rtl]
    [rtl]Net foreign assets at the central bank fell by $ 6.9 billion from a $ 480 billion in July, with the drawdown continuing to cover the budget deficit.[/rtl]
    [rtl]According to these figures, foreign assets fell 13.4% from a year earlier. These assets reached a peak of $ 737 billion in August 2014.[/rtl]
    [rtl]The central bank's holdings of foreign securities recorded a slight decline last month, falling by $ 264 million from a month earlier to $ 332.6 billion. Saudi deposits with foreign banks fell by $ 6.2 billion to $ 89.2 billion.[/rtl]
    [rtl]Central bank data also showed that the bank's existing loans to the private sector in the Kingdom fell by 1 percent in August from a year earlier, a sign of weakness in the economy, the sixth consecutive monthly decline in bank lending.[/rtl]

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