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 26,2020

Dubai, May 26: Business activities will reopen from 6am to 11pm as of Wednesday, May 27, across the emirate, it was announced on Monday.

The announcement of reopening business activities followed a virtual meeting of Dubai’s Dubai’s Supreme Committee of Crisis and Disaster Management chaired by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Executive Council.

The virtual meeting was also attended by Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Deputy Ruler of Dubai, and Sheikh Mansour Bin Mohammed Bin Rashid Al Maktoum, Chairman of the committee and members of the committee.

The gradual reopening of business activities in Dubai will take place from the fourth day of Eid Al Fitr, Wednesday, May 27. Once the announcement comes into effect, there will be no restrictions on movement between 6am and 11pm.

The decision followed a comprehensive assessment of the committee’s reports, various health and socio-economic aspects and a thorough review of the COVID-19 situation. International guidelines for co-existing with COVID-19 were also taken into consideration before making the decision. The new measures are aimed at adapting to the COVID-19 situation without disrupting activity in vital sectors while strictly observing precautionary measures including wearing of face masks, observing minimum physical distancing of two metres, use of sanitisers and regular handwashing with soap and water for 20 seconds.

Sheikh Hamdan stressed on the need for Dubai authorities to further raise community awareness about precautionary measures. Highlighting Sheikh Mohammed’s statement “Everyone is responsible”, he said the community should understand the importance of strictly following preventive steps. Fully adhering to guidelines is key to restoring normal life, he added.

“We are aware of the pressures many sectors are facing because of the repercussions of the COVID-19 pandemic. The UAE society has high levels of resilience to any crises and challenges. We have been following the severe impact of the COVID-19 outbreak on countries around the world. What makes us different is our ability to deal positively with changes and our agility. We have all the elements necessary to adapt to these challenging circumstances. I am confident that all members of the society will come together to overcome this crisis as soon as possible,” Sheikh Hamdan said.

During the meeting, Sheikh Hamdan was briefed about the latest developments related to the crisis and the readiness of various sectors in Dubai, mainly the healthcare sector, to deal with any scenario in the upcoming period.

Recent proactive measures have reinforced Dubai’s ability to deal with any unforeseen situation. The emirate has enhanced its hospital capacity by joining hands with the private sector and set up a fully equipped field hospital in Dubai World Trade Centre, which can accommodate up to 3,000 beds.

Sheikh Hamdan was also briefed on the potential capacity of the field hospital at Dubai Parks and Resorts, which was built under the directives and with the generous support of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. The 29,000 square metre hospital set up by the Abu Dhabi Health Services Company (SEHA) can accommodate up to 1,200 patients.

Sheikh Hamdan also reviewed preparations to gradually reopen various spheres of life while maintaining stringent precautionary and preventive measures including physical distancing, wearing of face masks, use of sanitisers and prevention of congestion and crowding. Protective measures also include guidelines on social customs and behaviour for members of the community, especially with regard to family visits.

Sheikh Hamdan was also briefed on the preparedness of key authorities in Dubai to manage the next phase, including Dubai Health Authority (DHA), COVID-19 Command and Control Centre (CCC), Dubai Police, State Security Department, Dubai Civil Defence, Dubai Ambulance, Dubai Municipality, Roads and Transport Authority (RTA), Department of Tourism and Commerce Marketing, the Department of Economic Development in Dubai (DED), Government of Dubai Media Office (GDMO) and other government entities whose efforts are key to maintaining the progress achieved in containing the COVID-19 pandemic.

Sheikh Hamdan called on all key organisations to intensify monitoring to ensure institutions, economic sectors and the public comply with all precautionary guidelines. He expressed his appreciation for the efforts of the National Emergency Crisis and Disaster Management Authority (NCEMA) and the Ministry of Health and Prevention. He also expressed his appreciation for the efforts of the Supreme Committee of Crisis and Disaster Management and all local and federal authorities to combat COVID-19. The Crown Prince affirmed that the safety and security of citizens and residents remain the highest priority of the UAE’s leadership.

The latest announcement comes as the Dubai government continues its efforts to ensure the highest level of safety for members of the community with the support of various entities. Its key recent measures have included intensified sterilisation at various areas and facilities and increased COVID-19 tests in densely populated areas to facilitate early detection of cases and isolation of people testing positive.

Dubai has deployed state-of-the-art equipment to support medical staff in conducting widespread tests. These have included tests for critical segments like people of determination and the elderly. The emirate has also enhanced monitoring of various entities to ensure compliance with precautionary measures and imposed fines on individuals and entities violating guidelines. Additionally, the Government of Dubai launched urgent economic measures to support sectors most affected by the pandemic including a Dh1.5 billion economic stimulus package introduced in March to ease the crisis’s financial impact on small and medium enterprises.

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Agencies
May 17,2020

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.

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News Network
May 25,2020

May 25: A total of 241 Indians including 136 people who were jailed in Kuwait would return to the country soon, a senior minister said on Sunday.

The other 105 people were stranded in Bangladesh, Law Minister Ratan Lal Nath said.

"Altogether 136 people from Tripura and Assam, who are at present in jail in Kuwait for violating that country's laws, would be deported. They will reach Guwahati between May 27 and June 4 in a special flight," Nath told reporters.

He said the matter has been officially informed by the Kuwaiti government, but the reason for their imprisonment is not known.

"We had requested the Kuwaiti authorities to drop the Tripura residents here. However, they informed us that the flight would land in a single airport," the minister added.

Nath said 105 residents of Tripura, who are stranded in different places of Bangladesh will return to the state through the Agartala-Akhaura integrated check post on May 28.

"They would be taken to institutional quarantine and swabs of all the passengers would be collected for COVID-19 test," Nath said.

If the report of their samples tests negative, they would be allowed to leave the facility and remain under 14 days of home quarantine. And those who test positive would be hospitalized, he said.

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