India request for extra Qatar LNG to boost bilateral trade

Jeddah, Mar 21: Saudi government ministers on Friday announced a war chest of more than SR120 billion ($32 billion) to fight the “unprecedented” health and economic challenges facing the country as a result of the killer coronavirus pandemic.

During a press conference in Riyadh, finance minister and acting minister of economy and planning, Mohammed Al-Jadaan, unveiled a SR70 billion stimulus package to support the private sector, especially small- and medium-sized enterprises (SMEs) and businesses worst-hit by the virus outbreak.

And the Saudi Arabian Monetary Authority (SAMA) has also sidelined SR50 billion to help the Kingdom’s banking sector, financial institutions and SMEs.

Al-Jadaan said the government had introduced tough measures to protect the country’s citizens while immediately putting in place a financial safety net. He added that the Kingdom was moving decisively to address the global COVID-19 disease crisis and cushion the financial and economic impact of the outbreak on the country.

The SR70 billion package of initiatives revealed by the minister will include exemptions and postponement of some government dues to help provide liquidity for private-sector companies.

Minister of Health Dr. Tawfig Al-Rabiah noted the raft of precautionary measures that had been introduced by the Kingdom in cooperation with the private sector and government agencies to combat the spread of the coronavirus, highlighting the important contribution of the data communication services sector.

He reassured the Saudi public that the Kingdom would continue to do whatever was required to tackle the crisis.

“This pandemic has a lot of challenges. It’s difficult to make presumptions at this moment as we’ve seen; many developed countries did not expect the rate of transmission of this virus.

“We see that the reality of the situation is different from what many expected. The virus is still being studied and though we know the means of transmission, it is transmitted at a very fast rate, having spread to many countries faster than expected.

“We see that many countries have not taken the strong precautionary measures from the beginning of the crisis which led to the vast spread of the virus in these countries,” Al-Rabiah said.

He pointed out that social distancing would help slow the spread.

Al-Jadaan said the Saudi government had the financial and economic capacity to deal with the situation. “We have large reserves and large investments, but we do not want to withdraw from the reserves more than what was already announced in the budget. We do not want to liquidate any of the government’s investments so we will borrow.

“We have approval from the government after the finance committee raised its recommendations to increase the proportion of the domestic product borrowing from 30 percent to 50 percent. We do not expect to exceed 50 percent from now until the end of 2022,” he added.

The government would use all the tools available to it to finance the private sector, especially SMEs, and ensure its ongoing stability.

The finance minister said that at this stage it was difficult to predict the economic impact of the pandemic on the private sector, but he emphasized that international coordination, most notably through G20 countries and health organizations, was ongoing.

On recorded cases of the COVID-19 disease in the Kingdom, Al-Rabiah said: “Many of the confirmed cases are without symptoms, this is due to the precautionary measures being considered.

“As soon as a case is confirmed, we contact and examine anyone who was in direct contact with the patient. This epidemiological investigation, is conducted on a large scale to investigate any case that was in contact with the patient.”

Al-Jadaan also announced the formation of a committee made up of the ministers of finance, economy and planning, commerce, and industry and mineral resources, along with the vice chairman of the board of the Saudi National Development Fund, and its governor.

The committee will be responsible for identifying and reviewing incentives, facilities, and other initiatives led by the fund.

Committees had also been established, said Al-Jadaan, to study the impact and repercussions of the coronavirus crisis on all sectors and regions, and look at ways of overcoming them through subsidies or stimulus packages.

Riyadh, Jan 6: Saudi Arabia was not consulted by its ally Washington over a US drone strike that killed a top Iranian general, an official said Sunday, as the kingdom sought to defuse soaring regional tensions.

Saudi Arabia is vulnerable to possible Iranian reprisals after Tehran vowed "revenge" following the strike on Friday that killed powerful commander Qasem Soleimani in Baghdad.

"The kingdom of Saudi Arabia was not consulted regarding the US strike," a Saudi official told AFP, requesting anonymity.

"In light of the rapid developments, the kingdom stresses the importance of exercising restraint to guard against all acts that may lead to escalation, with severe consequences," the official added.

Saudi Arabia's foreign ministry made a similar call for restraint at the weekend and King Salman emphasised the need for measures to defuse tensions in a phone call on Saturday with Iraqi President Barham Saleh.

In a separate phone call with Iraq's Prime Minister Adel Abdel Mahdi, Saudi Crown Prince Mohammed bin Salman stressed "the need to make efforts to calm the situation and de-escalate tensions", the official Saudi Press Agency reported.

The crown prince has instructed Prince Khalid bin Salman, his younger brother and deputy defence minister, to travel to Washington and London in the next few days to urge restraint, the pan-Arab Asharq al-Awsat newspaper reported.

Prince Khalid will meet White House and US defence officials, the paper said, citing unnamed sources.

The killing of Soleimani, seen as the second most powerful man in Iran, is the most dramatic escalation yet in spiralling tensions between Washington and Tehran and has prompted fears of a major conflagration in the Middle East.

US President Donald Trump, who ordered the drone strike, has warned that Washington will hit Iran "very fast and very hard" if the Islamic republic attacks American personnel or assets.

The American embassy in Riyadh on Sunday warned its citizens living close to military bases and oil and gas installations in the kingdom of a "heightened risk of missile and drone attacks".

A string of attacks blamed on Iran has caused anxiety in recent months, as Riyadh and Washington deliberated over how to react.

In particular, devastating strikes against Saudi oil installations last September led Riyadh and Abu Dhabi to adopt a more conciliatory approach aimed at avoiding confrontation with Tehran.

Analysts warn that pro-Iran groups have the capacity to carry out attacks on US bases in Gulf states as well as against shipping in the Strait of Hormuz -- the strategic waterway that Tehran could close at will.

"Expect Iranian reprisals (directly or through partner groups in Iraq, Lebanon or elsewhere) to target US partners in the region including Saudi Arabia," said Thomas Juneau, an assistant professor at the University of Ottawa.

"Given the climate in the US, where support for Saudi in the media and Congress is at an all time low, it will be difficult for Trump to commit significant resources to come to its aid."

Yemen's pro-Iran Huthi rebels, locked in a five-year conflict with a Saudi-led military coalition, have also called for swift reprisals for Soleimani's killing.

"The aggression... will not go without a response," said Huthi political council member Mohammed Al-Bukhaiti.

"How the response is going to be, when and where will be determined by Iraq and Iran, and we will stand with them as a hub for the resistance."

It was unclear if the Huthi warning was directed in part at Saudi Arabia, which has stepped up efforts to end Yemen's conflict amid a lull in Huthi attacks on the kingdom.

Saudi Arabian military commanders recently met with counterparts from "friendly countries" to formulate a new strategy to tackle the Yemeni rebels, particularly those "opposing" a political solution, according to Asharq al-Awsat.

Riyadh has said it will host a separate meeting of foreign ministers of Arab and African coastal states on Monday.

Dubai, Mar 18: Emirates, one of the world's biggest international airlines, has asked pilots to take unpaid leave to help it mitigate the impact of the coronavirus pandemic that has shattered demand for global travel.

"To this end you are strongly encouraged to make use of this opportunity to volunteer for additional paid and unpaid leave," the airline said in an internal email to pilots, seen by Reuters.

Emirates earlier this month asked some staff to take unpaid leave, although at that time it was not available to pilots.