Saudi oil reserves close in on world’s top spot

Dubai, Feb 24: Kuwait and Bahrain confirmed on Monday their first novel coronavirus cases, the countries' health ministries announced, adding all had come from Iran.

Kuwait reported three infections and Bahrain one in citizens who had returned home from the Islamic republic.

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, May 26: The authorities in Saudi Arabia have decided to ease some restrictions put in place over coronavirus fears, allowing movement and resumption of some economic and commercial activities, Saudi Press Agency reported early Tuesday citing an official source at the Interior Ministry.

The move also allows restarting of domestic flights, opening of mosques, restaurants and cafes and work attendance, however, the temporary suspension of Umrah pilgrimage remains in force.

The easing of restrictions will be carried out in a phased manner, with the first phase beginning on Thursday (May 28) and ending on May 30.

In the first phase, the movement within and between all regions of the Kingdom in private cars will be allowed from 6 a.m. to 3 p.m. except in Makkah. Economic and commercial activities will resume in retail and wholesale shops and malls but beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will continue to remain shut due to social distancing concerns.

In the second phase, which begins on May 31 and ends on June 20, the movement is allowed from 6 a.m. and 8 p.m. in all areas of the Kingdom, except in Makkah. All congregational prayers, including Friday prayers, will resume in all mosques across the Kingdom except in Makkah.

The suspension of workplace attendance will end, allowing all employees in ministries, government entities and private sector companies to return to working from their offices provided that they follow strict precautionary guidelines.

The suspension on travel between regions in the Kingdom using various transport methods will no longer be in place. Airlines will be allowed to operate domestic flights if they adhere to precautionary measures set by the civil aviation authority and the Ministry of Health. The suspension of international flights, will, however, continue until further notice.

Restaurants and cafes serving food and beverages can reopen, however, beauty salons, barber shops, sports clubs, health clubs, entertainment centers and cinemas will be barred from reopening in the second phase. The ban on social gatherings of more than fifty people, such as weddings and funerals will also continue to remain in force.

In the third phase commencing on June 21, the Kingdom will return to "normal" conditions as it was before the coronavirus lockdown measures were implemented.

Meanwhile in Makkah, the first phase measures will be implemented between May 31 to June 20 and the second phase will begin on May 21. Friday prayers and all congregational prayers will continue to be held in the Grand Mosque, only to be attended by Imams and the employees.