KSRelief projects amount to over $680m in 33 countries

Dubai, May 5: A Saudi ministerial decision issued on Monday allows companies in the private sector to reduce salaries by 40 per cent and allows termination of contracts owing to the economic hardships resulting from the COVID-19 pandemic, according to daily newspaper Al Sharq Awsat.

The new decision was still not published by the cabinet according to the newspaper.

The decision which the newspaper saw a copy of was signed by Saudi Ministry of Human Resources and Social Development to regulate the labour contract in the current period, allows employers to reduce the employees salaries by 40 percent of the actual effective wage for a period of 6 months, in proportion to the hours of work and allowing the termination of employee contract after 6 months of the COVID-19 circumstances.

The new decision has also included a provision in which the employer would be allowed to cut wages even he or she benefits from the subsidy provided by the goverment, such as those for helping pay workers wages or exemption from government fees.

The decision also stressed that employers are not allowed to terminate any employee, unless three conditions are met.

1.            First the passing of six months since the measures of salary cut has been taken

2.            Reducing pay, annual leave and exceptional leave were all used

3.            Company proves that its facing financial troubles due to the circumstances.

The memo, which goes into affect as soon as its published in the government’s official newspaper, ensures that the employee will receive his/her salary if on annual leave within the period of 6 months.

Dubai, May 7: Saudi Arabia will emerge as the victor of the oil price war that sent global crude markets into a spin last month, according to two experts in the energy industry.

Jason Bordoff, professor and founding director of the Center for Global Energy policy at New York’s Columbia University, said: “While 2020 will be remembered as a year of carnage for oil nations, at least one will most likely emerge from the pandemic stronger, both economically and geopolitically: Saudi Arabia.”

Writing in the American publication Foreign Policy, Bordoff said that the Kingdom’s finances can weather the storm from lower oil prices as a result of the drastically reduced demand for oil in economies under pandemic lockdowns, and that it will end up with higher oil revenues and a bigger share of the global market once it stabilizes.

Bordoff’s view was reinforced by Sir Mark Moody-Stuart, former chairman of Royal Dutch Shell and one of the longest-standing directors of Saudi Aramco. In an interview with the Gulf Intelligence energy consultancy, he said that low-cost oil producers such as Saudi Arabia would emerge from the pandemic with increased market share.

“Oil is the only commodity where the lowest-cost producers have contained their production and allowed high-cost producers to benefit. When demand recovers this year or next, we will emerge from it with the lowest-cost producers having increased their market share,” Moody-Stuart said.

Bordfoff said that it would take years for the high-cost American shale industry to recover to pre-pandemic levels of output. “Depending on how long oil demand remains depressed, US oil production is projected to decline from its pre-coronavirus peak of around 13 million barrels per day.

“Shale's heady growth in recent years (with production growing by about 1 million to 1.5 million barrels per day each year) also reflected irrational exuberance in financial markets. Many US companies struggling with uneconomical production only managed to stay afloat with infusions of cheap debt. One quarter of US shale oil production may have been uneconomic even before prices crashed,” he said.

Moody-Stuart said that recent statements about cuts to the Saudi Arabian budget as a result of falling oil revenues were “an important step to wean the population of the Kingdom off an entitlement feeling. It means that everybody is joining in it.”

The former Shell boss said that other big oil companies would follow Shell’s recent decision to cut its dividend for the first time in more than 70 years. But he added that Aramco would stick by its commitment to pay $75 billion of dividends this year.

“When a company looks at its forecasts it looks ahead for one year, so for this year it (the dividend) is fine,” he said.

Bordoff added that Saudi Arabia’s action in cutting oil production in response to the pandemic would improve its global position.

“Saudi Arabia has improved its standing in Washington. Following intense pressure from the White House and powerful senators, the Kingdom’s willingness to oblige by cutting production will reverse some of the damage done when it was blamed for the oil crash after it surged production in March,” he said.

“Only a few weeks ago, the outlook for Saudi Arabia seemed bleak. But looking out a few years, it’s difficult to see the Kingdom in anything other than a strengthened position,” Bordoff said.

Riyadh, June 23: Saudi Arabia has decided to go ahead with the Hajj pilgrimage with strict health measures and protocols in an effort to prevent the spread of covid-19.

Minister of Health Dr. Tawfiq Al-Rabiah and Minister of Hajj and Umrah Dr. Muhammad Saleh Benten today addressed a joint virtual press conference today. 

Minister of Hajj expected that number of domestic pilgrims performing the pilgrimage this year will not be more than 10,000. He also confirmed that no pilgrims from outside the Kingdom will be allowed to perform Hajj this year.

Dr. Al-Rabiah said pilgrims should be less than 65 years of age and not suffering from any chronic diseases.

The Hajj pilgrimage, which is one of the five pillars of Islam and a must for able-bodied Muslims at least once in their lifetime, will this year only welcome a “limited number” of people from inside the Kingdom, authorities had said on Monday.

Every year, about 2.5 million pilgrims visit the holiest sites of Islam in Makkah and Madinah, which could make it a possible breeding ground for the disease.

To prevent COVID-19 from spreading among pilgrims, the health ministry, in collaboration with the Ministry of Hajj and Umrah, has developed the plan to ensure the safety of all visitors.

“We have worked with the Ministry of Health to develop preventative and precautionary measures and protocols that are needed to ensure a safe Hajj season,” Benten said.

Protocols:

1. No more than 10,000 people will be allowed to perform the Hajj pilgrimage.

2. All pilgrims will be tested before they reach the holy sites.

3. Only those under the age of 65 will be allowed to perform Hajj this year.

4. All pilgrims will be asked to self-quarantine after they complete the Hajj rituals.

5. All workers and volunteers will be tested before the Hajj pilgrimage begins.

6. The health status of all pilgrims will be monitored daily.

7. A hospital has been prepared for any emergency that occurs during the pilgrimage.

8. Social distancing measures will be enforced.