Sept 28: Three Saudi men accused of terrorism were killed on Wednesday after they resisted arrest in the region of Qatif, a Saudi security spokesman said on Thursday.
Three members of the Saudi security forces suffered light injuries, he said. The three killed "are linked to the terror incidents that happened in Qatif," he said.
Riyadh, Apr 8: Saudi Arabia's health minister has warned the number of COVID-19 cases in the country could reach 200,000 in coming weeks.
As of Tuesday, the kingdom registered a total of 2,795 coronavirus infections, including 41 deaths.
"Within the next few weeks, studies predict the number of infections will range from a minimum of 10,000 to a maximum of 200,000," health minister Tawfiq al-Rabiah was cited as saying by the official Saudi Press Agency on Tuesday.
On Monday, Saudi Arabia extended the duration of daily curfews in four governorates and five cities to 24 hours.
The kingdom imposed round-the-clock lockdowns in the capital Riyadh, Tabuk, Dammam, Dhahran and Hofuf, the interior ministry said on Twitter.
The same measures were also imposed on the governorates of Jeddah, Taif, Qatif and Khobar, the ministry added.
Authorities had already sealed off the holy cities of Mecca and Medina, barring people from entering and exiting as well as prohibiting movement between all provinces.
Last month, Saudi Arabia suspended the year-round "Umrah" pilgrimage over fears of the coronavirus pandemic spreading to Islam's holiest cities.
Authorities are yet to announce whether they will proceed with this year's Hajj, scheduled for the end of July. Last week, authorities urged Muslims to temporarily defer preparations for the annual pilgrimage.
Last year, about 2.5 million people travelled to Saudi Arabia to take part in the Hajj, which all Muslims must perform at least once in their lives if able.
The Arab world's biggest economy has also closed down cinemas, malls and restaurants and halted flights as it steps up efforts to contain the virus.
King Salman has warned of a "more difficult" fight ahead against the virus, as the kingdom faces the economic double blow of virus-led shutdowns and crashing oil prices
Jerusalem, May 17: The Chinese ambassador to Israel was found dead in his home north of Tel Aviv on Sunday, Israel's Foreign Ministry said.
No cause of death was given and Israeli police said it was investigating.
Du Wei, 58, was appointed envoy in February in the midst of the coronavirus pandemic. He previously served as China's envoy to Ukraine.
He is survived by a wife and son, both of whom were not in Israel.
Israel enjoys good relations with China.
The ambassador's death comes just two days after he condemned comments by visiting U.S. Secretary of State Mike Pompeo, who denounced Chinese investments in Israel and accused China of hiding information about the coronavirus outbreak.
May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.
Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.
Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.
"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."
The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.
The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.
"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.
The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.
Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.
"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.
About 1.5 million Saudis are employed in the government sector, according to official figures released in December.
In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.
DIFFICULT TIMES
A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.
In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.
In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.
"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.
"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.
Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.
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