Saudi Arabia’s quick response to counter the Covid-19 pandemic has curtailed its impact on the kingdom’s economy, which is expected to expand 2.1 per cent this year, the International Monetary Fund said.
The pace of recovery will accelerate next year, as the largest Arab economy will expand 4.8 per cent in 2022, after contracting 4.1 per cent in 2020, the IMF said in a statement.
“The authorities responded quickly and decisively to the Covid-19 crisis and the economic recovery that is underway is expected to continue,” the Washington-based lender said at the conclusion of its Article IV consultations with Saudi Arabia.
The kingdom’s non-oil gross domestic product is projected to grow 3.9 per cent in 2021 and 3.6 per cent next year, after a contraction of 2.3 per cent in 2020.
The oil economy of Opec’s biggest exporter is projected to contract 0.5 per cent this year as production curbs by the group and its allies to support prices remain in place. However, it is expected to expand 6.8 per cent in 2022 as they are removed. Oil GDP shrank 6.7 per cent last year as demand and prices declined once movement restrictions to stem the spread of the virus were introduced.
"The [IMF] statement reaffirms the success of the kingdom's government in achieving positive results and tangible successes during the most challenging year for the whole world," Mohammed Al-Jadaan, Saudi Arabia's Minister of Finance, said in a statement.
The country has risen to challenges that include the Covid-19 pandemic, fluctuations in oil prices, sharp economic swings, a decline in global demand and receding growth, he added.
Saudi Arabia launched fiscal and monetary stimulus programmes last year to support its economy. The measures were aimed at protecting the kingdom’s banking system and commercial entities, especially micro, small and medium-sized enterprises,.
In June last year, the Saudi Central Bank injected 50 billion riyals ($13.3bn) into financial institutions to boost liquidity and banks' lending capacity. It provided another 50bn riyals to shore up its private sector and launched concessionary finance for SMEs of up to 13.2bn riyals, as well as loan guarantees worth 6bn riyals.
Under its Private Sector Financing Support Programme, the central bank also extended about 30bn riyals to lenders and financing companies, allowing the SME sector, the biggest employer in the kingdom, to postpone repayment of loans.
Some of the stimulus measures remain in place while others are being rolled back as the kingdom’s economy recovers.
“To secure [complete] recovery and spur stronger growth, policymakers need to carefully manage the exit from the remaining Covid-related support [measures],” the IMF said.
“The private sector support programmes that Sama and the banks have implemented during the crisis have provided important breathing space to SMEs … [and] the need to continue with the deferred payments programme should be assessed regularly based on the economic and financial situation facing SMEs.”
Even before the twin shocks of the pandemic and oil price slump, Saudi Arabia has been transforming its economy away from oil to cut its reliance on hydrocarbon revenue. The IMF said the kingdom should “continue the longer-term reform agenda under Vision 2030”.
Authorities responded quickly and decisively to the Covid-19 crisis and the economic recovery that is underway is expected to continue
The fund said Saudi Arabia’s 2021 budget aims to substantially reduce its fiscal deficit, which widened in 2020 to 11.3 per cent of GDP from 4.5 per cent in 2019.
It projects the deficit will narrow to 4.2 per cent of GDP this year, slightly lower than the kingdom’s 2021 budget forecast, and move to a broad balance by 2026, “given the outlook for the global oil market and the fiscal policy plans of the government”.
The IMF urged further fiscal consolidation but said this should be “carefully calibrated” in the short term to ensure the recovery continues to be well supported.
UAE currency: the story behind the money in your pockets
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
The Baghdad Clock
Shahad Al Rawi, Oneworld
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
The Travel Diaries of Albert Einstein The Far East, Palestine, and Spain, 1922 – 1923
Editor Ze’ev Rosenkranz
Princeton
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
Fixtures
Opening day Premier League fixtures for August 9-11
August 9
Liverpool v Norwich 11pm
August 10
West Ham v Man City 3.30pm
Bournemouth v Sheffield Utd 6pm
Burnley v Southampton 6pm
C Palace v Everton 6pm
Leicester v Wolves 6pm
Watford v Brighton 6pm
Tottenham v Aston Villa 8.30pm
August 11
Newcastle v Arsenal 5pm
Man United v Chelsea 7.30pm
THE%C2%A0SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.4-litre%20four-cylinder%0D%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20210hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Starting%20from%20Dh89%2C900%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Killing of Qassem Suleimani
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
The BIO
Favourite piece of music: Verdi’s Requiem. It’s awe-inspiring.
Biggest inspiration: My father, as I grew up in a house where music was constantly played on a wind-up gramophone. I had amazing music teachers in primary and secondary school who inspired me to take my music further. They encouraged me to take up music as a profession and I follow in their footsteps, encouraging others to do the same.
Favourite book: Ian McEwan’s Atonement – the ending alone knocked me for six.
Favourite holiday destination: Italy - music and opera is so much part of the life there. I love it.
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
