60,000 Saudis unable to repay their debts

February 6, 2013

60000_Saudis

Jeddah, Feb 6: About 60,000 Saudis are unable to pay off their loans, said Abdullah Marei bin Mahfouz, chairman of the Jeddah branch of the national committee for the care of prisoners and their families.

Bin Mahfouz said that currently about 300 Saudis are imprisoned in the Kingdom who are unable to settle their bank debts. In addition, about 500 prisoners are unable to pay off credit card debts, and car installments.

Between 2009 and 2011 the increased effectiveness of the payment system — which protects the rights of banks — contributed to lowering the number of people who borrowed money to buy consumer goods, he said.

“I think Saudis are becoming more cautious about getting indebted due to the strict procedures that banks are following. Still, too many Saudis make debts to fund their summer vacation or to buy a luxurious car,” he said.

He added, “The majority of Saudis who are unable to refund their debts, start looking for another source of money, like car companies. They buy two or three cars on an installment system. Then they sell these cars for cash. In most cases the borrowers are unable to refund the car installments.”

According to Bin Mahfouz, sometimes husbands make their wives borrow money for them.

“We currently have six women in prison that were unable to repay their debts. They work as teachers and their husbands forced them to take out bank loans, knowing they would be unable to refund it,” he said.

The bank system is extremely strict in collecting the debts on time.

“When the money is not repaid in due time, the bank freezes the account, stops all electronic transactions of the debtor, and then sends them notifications through the police department,” said Bin Mahfouz.

He added, “Most convicts who are in jail because they couldn’t repay, are Saudis. Expatriates are committed to settling their debts. There are a few Filipino debtors in prison. These are locked up because of credit card debts for amounts starting around SR 10,000. In contrast, Saudis debtors in jail run debts from SR 100,000 and more.”

The Saudi Arabian Monetary Agency (SAMA) recently issued a report on consumer debts. It said these reached SR 246.9 billion in the first quarter of 2012. Compared to the same period in the previous year, the number was up by 19 percent.

SAMA had warned banks against rescheduling unpaid debts of individuals, saying that 45 percent of the debts should be repayable within three years.

Saudi Banker Fadhel Albu Ainain told Arab News that the ratio of consumer debts is high; many people are in debt. He expected the ratio to decrease with the entrance of the mortgage law.

“In Saudi Arabia the rate of consumer debts, used to buy consumer goods, is estimated at about 75 percent. This is unhealthy for the Saudi market. A healthy market would show that most of the loans are used for acquiring stable commercial investments and real estate. Unfortunately, most of the borrowers are employees whose their salaries can’t cover these loans,” he said. “The problem in Saudi Arabia is that people who earn a low wage often tend to incur debts to live a luxurious life.”

Albu Ainain is opposed to increasing the payment period to more than five years.

“Some people are now calling for expanding the debts repayment period to more than five years. There are also calls to increase the maximum amount people can borrow. This is would increase the size of loans and weaken people’s ability to repay their debts,” he said.

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News Network
May 4,2020

Dubai, May 4: An Indian salesman in the UAE has won a whopping 10 million dirhams at an Abu Dhabi draw, a media report said.

Dileep Kumar Ellikkottil Parameswaran, from Kerala’s Thrissur, works with an auto spare parts company in Ajman and earns 5,000 dirhams (USD 1,361) a month, Gulf News reported on Sunday.

Parameswaran, who won the 10 million dirhams (USD 2.7 million) prize at the Big Ticket draw in Abu Dhabi, will spend a big part of the money to repay a loan of 700,000 dirhams (USD 190,574 ), according to the report.

He said that a good part of the prize money will be spent on the education of his two children.

Parameswaran, who has been a resident of the UAE for 17 years, lives in Ajman along with his family.

Big Ticket is the largest and longest-running monthly raffle draw for cash prizes and dream luxury cars in Abu Dhabi.

A live monthly draw is organized at the Abu Dhabi International Airport on 3rd of each month.

Tickets are sold for 500 dirhams (USD 136).

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Agencies
August 2,2020

Dubai, Aug 2: The United Arab Emirates (UAE) announced on Saturday that it has started operations in the first of four reactors at the Barakah nuclear power station - the first nuclear power plant in the Arab world.

Emirates Nuclear Energy Corporation (ENEC), which is building and operating the plant with Korea Electric Power Corporation (KEPCO) said in a press release that its subsidiary Nawah Energy Company "has successfully started up Unit 1 of the Barakah Nuclear Energy Plant, located in the Al Dhafrah Region of Abu Dhabi".

That signals that Unit 1, which had fuel rods loaded in March, has achieved "criticality" - a sustained fission chain reaction.

"The start-up of Unit 1 marks the first time that the reactor safely produces heat, which is used to create steam, turning a turbine to generate electricity," said ENEC.

Barakah, which was originally scheduled to open in 2017, has been dogged by delays and is billions of dollars over budget. It has also raised myriad concerns among nuclear energy veterans who are concerned about the potential risks Barakah could visit upon the Arabian Peninsula, from an environmental catastrophe to a nuclear arms race.

Paul Dorfman, an honorary senior research fellow at the Energy Institute, University College London and founder and chair of the Nuclear Consulting Group, has criticised the Barakah reactors' "cheap and cheerful" design that he says cuts corners on safety.

Dorfman authored a report (PDF) last year detailing key safety features Barakah's reactors lack, such as a "core catcher" to literally stop the core of a reactor from breaching the containment building in the event of a meltdown. The reactors are also missing so-called Generation III Defence-In-Depth reinforcements to the containment building to shield against a radiological release resulting from a missile or fighter jet attack.

Both of these engineering features are standard on new reactors built in Europe, says Dorfman.

There have been at least 13 aerial attacks on nuclear facilities in the Middle East - more than any other region on earth.

The vulnerability of critical infrastructure in the Arabian Peninsula was further laid bare last year after Saudi Arabia's oil facilities at Abqaiq and Khurais were attacked by 18 drones and seven cruise missiles - an assault that temporarily knocked out more than half of the kingdom's oil production.

On Saturday, Dorfman reiterated his concern that there is no regional protocol in place to determine liability should an accident or incident at Barakah result in radioactive contamination spreading from the UAE to its neighbours. 

"Given Barakah has started up, because of all the well-rehearsed nuclear safety and security problems, it may be critically important that the Gulf states collectively evolve a Nuclear Accident Liability Convention, so that if anything does go wrong, victim states may have some sort of redress," Dorfman told Al Jazeera. 

The UAE has substantial oil and gas reserves, but it has made huge investments in developing alternative energy sources, including nuclear and solar.

Experts though have questioned why the UAE - which is bathed in sunlight and wind - has pushed ahead with nuclear energy - a far more expensive and riskier option than renewable energy sources.

When the UAE first announced Barakah in 2009, nuclear power was cheaper than solar and wind. But by 2012 - when the Emirates started breaking ground to build the reactors - solar and wind costs had plummeted dramatically.

Between 2009 and 2019, utility-scale average solar photovoltaic costs fell 89 percent and wind fell 43 percent, while nuclear jumped 26 percent, according to an analysis by the financial advisory and asset manager Lazard.

There are also concerns about the potential for Barakah to foment nuclear proliferation in the Middle East - a region rife with geopolitical fault lines and well-documented history of nuclear secrecy.

The UAE has sought to distance itself from the region's bad behaviour by agreeing not to enrich its own uranium or reprocess spent fuel. It has also signed up to the United Nation's nuclear watchdog's Additional Protocol, significantly enhancing inspection capabilities, and secured a 123 Agreement with the United States that allows bilateral civilian nuclear cooperation.

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News Network
May 10,2020

Dubai, May 10: Kuwait will enact a "total curfew" from 4pm (1300 GMT) on Sunday through to May 30 to help to curb the spread of the new coronavirus, the Information Ministry said on Twitter on Friday.

Further details of the curfew will be announced soon, it said.

Kuwait on April 20 expanded a nationwide curfew to 16 hours a day, from 4pm to 8am, and extended a suspension of work in the public sector, including government ministries, until May 31.

On Friday the Gulf state announced 641 new coronavirus cases and three deaths, bringing its total number of confirmed cases to 7,208, with 47 deaths.

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