Saudi reforms start to yield results, outlook positive, says IMF

Agencies
July 23, 2019

Washington, Jul 23: Saudi Arabia’s reforms have started to yield results and the outlook for the economy is positive, the International Monetary Fund’s (IMF) Executive Board said.

The board also commended the authorities for the progress in implementing their economic and social reform agenda.

The continued commitment to macroeconomic policies and appropriate prioritization of reforms will be key to promoting non-oil growth, creating jobs for nationals, and achieving the objectives of the Saudi Vision 2030 agenda.

Fiscal consolidation is key to rebuilding fiscal buffers and reducing medium-term fiscal vulnerabilities.

Efforts to contain government wage bill and a more measured increase in capital spending will help the government generate fiscal savings, the IMF noted.

The policies to develop new economic sectors will be successful if Saudi workers have the needed skills for the private sector and the incentives to offer them at competitive wages.

Meanwhile, wages and productivity should be well aligned. Labor market policies focus on setting clear expectations about limited employment opportunities in the public sector and that female employment is increased, the Washington-based lender said.

The fund urged Saudi Arabian authorities to continue improving and managing expenditure, saying that despite important reforms, spending has increased.

The authorities were urged to maintain their fiscal reforms, including by continuing with the planned energy and water price reforms and increases in expatriate labor fees.

In addition, the IMF directors welcomed the authorities’ ambitious reforms to develop the non-oil economy.

They noted the ongoing efforts to strengthen the business environment and considered that careful implementation of industrial policies could encourage the development of new sectors of the economy.

The exchange rate peg to the US dollar still serves the economy well, in light of the current structure of the economy. 

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coastaldigest.com news network
August 3,2020

Sharjah, Aug 3: A 24-year-old Indian engineer has fallen to death from the sixth floor of a residential building on Eid al-Adha in the UAE's Sharjah, a media report said on Monday. 

The electrical engineer, identified with his single name Sumesh, hailed from the south Indian state of Kerala.

He lived in a building in Al Dhaid in Sharjah, from where he fell to death on Friday, the report said, adding that he was apparently talking over the phone and threw it down minutes before the incident.

Sumesh, who came to the UAE a year ago, worked as a designer in Sharjah's Muwaileh area. His roommates said that he had some "personal issues" that had been "bothering him for some time", according to the report.

"It was Eid al-Adha and our cook had made biryani for us. We were all cracking jokes and having a good time. In fact, even Cuckoo (Sumesh) was also laughing with us. He seemed happy. Nobody had anticipated this. I did sense a few times that something was troubling him and I even asked him about it, but he brushed it off," the report quoted his roommate Dileep Kumar as saying.

Shans KF, another roommate, said Sumesh was to travel to India for his annual leave but could not because of the COVID-19 pandemic.

The police have launched an investigation and moved the body to the forensic lab for an autopsy.

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News Network
June 23,2020

Riyadh, Jun 23: Authorities in Saudi Arabia have decided to allow a limited number of citizens and residents who are already in the Kingdom to do this year’s Haj.

In a statement on Monday, the Ministry of Haj and Umrah said that in light of the continuation of the coronavirus pandemic and the risks of infections spreading in crowded spaces and large gatherings, it has been decided that Haj for this year (1441 H/ 2020 AD) will be held whereby a very limited number of pilgrims from various nationalities who already reside in Saudi Arabia, would be able to perform it.

“The decision was taken to ensure Haj is performed in a safe manner from a public health perspective while observing all preventative measures and the necessary social distancing protocols to protect human beings from the risks associated with this pandemic and in accordance with the teachings of Islam in preserving the lives of human beings, the statement added.

“The government of the Custodian of the Two Holy Mosques is honored to serve millions of Haj and Umrah pilgrims annually and it confirms that this decision stems from the top priority it accords maintaining the safety of pilgrims on its land until they depart to their home countries.”

“We ask Allah the Almighty to protect all countries from this pandemic and keep all humans protected and safe, the statement said.

Saudi Arabia’s top priority is to always enable Muslim pilgrims to perform Haj and Umrah rites safely and securely and the Kingdom has been keen since the beginning of the pandemic to take all necessary precautionary measures to protect pilgrims, including by suspending the entry of Umrah pilgrims while ensuring the safety of the pilgrims already present at the holy sites, the statement further added.

Commenting on the Haj decision, the Saudi Human Rights Commission said that Saudi Arabia believes in the universal right to health. Limiting Haj not only protects the Kingdom but also many pilgrims and the communities they call home around the world.

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Agencies
February 27,2020

Riyadh, Feb 27: Saudi Arabia on Thursday halted travel to the holiest sites in Islam over fears about a new viral epidemic just months ahead of the annual hajj pilgrimage, a move coming as the Mideast has over 220 confirmed cases of the illness.

The extraordinary decision by Saudi Arabia stops foreigners from reaching the holy city of Mecca and the Kaaba, the cube-shaped structure the world's 1.8 billion Muslims pray toward five times a day. It also said travel was suspended to Prophet Muhammad's mosque in Medina.

The decision showed the worry about the outbreak potentially spreading into Saudi Arabia, whose oil-rich monarchy stakes its legitimacy on protecting Islam's holy sites. The epicenter in the Mideast's most-affected country, Iran, appears to be in the holy Shiite city of Qom, where a shrine there sees the faithful reach out to kiss and touch it in reverence.

"Saudi Arabia renews its support for all international measures to limit the spread of this virus, and urges its citizens to exercise caution before traveling to countries experiencing coronavirus outbreaks," the Saudi Foreign Ministry said in a statement announcing the decision.

"We ask God Almighty to spare all humanity from all harm." Disease outbreaks always have been a concern surrounding the hajj, required of all able-bodied Muslims once in their life, especially as pilgrims come from all over the world.

The earliest recorded outbreak came in 632 as pilgrims fought off malaria. A cholera outbreak in 1821, for instance, killed an estimated 20,000 pilgrims. Another cholera outbreak in 1865 killed 15,000 pilgrims and then spread worldwide.

More recently, Saudi Arabia faced a danger from a related coronavirus that caused Middle East respiratory syndrome, or MERS. The kingdom increased its public health measures in 2012 and 2013, though no outbreak occurred.

While millions attend the 10-day hajj, this year set for late July into early August, millions more come during the rest of the year to the holy sites in the kingdom.

"It is unprecedented, at least in recent times, but given the worldwide spread of the virus and the global nature of the umrah, it makes sense from a public health and safety point of view," said Kristian Ulrichsen, a research fellow at the James A Baker III Institute for Public Policy at Rice University. "Especially since the Iranian example illustrates how a religious crossroads can so quickly amplify the spread and reach of the virus." The virus that causes the illness named COVID-19 has infected more than 80,000 people globally, mainly in China. The hardest-hit nation in the Mideast is Iran, where Health Ministry spokesman Kianoush Jahanpour said 19 people have died among 139 confirmed cases.

Experts are concerned Iran may be underreporting cases and deaths, given the illness's rapid spread from Iran across the Persian Gulf. For example, Iran still has not confirmed any cases in Mashhad, even though a number of cases reported in Kuwait are linked to the Iranian city.

In Bahrain, which confirmed 33 cases as of Thursday morning, authorities halted all flights to Iraq and Lebanon. It separately extended a 48-hour ban overflights from Dubai and Sharjah in the United Arab Emirates, through which infected travellers reached the island kingdom off the coast of Saudi Arabia.

Iranian President Hassan Rouhani said there were no immediate plans to quarantine cities but acknowledged it may take "one, two or three weeks” to get control of the virus in Iran.

As Iran's 80 million people find themselves increasingly isolated in the region by the outbreak, the country's sanctions-battered economy saw its currency slump to its lowest level against the US dollar in a year on Wednesday.

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