Saudi set to establish $8 billion export bank for industry, mining

DAMMAM / Reuters

Saudi Arabia will establish an export bank with capital of $8 billion to support overseas sales by its industrial and mining projects, energy, industry and mineral resources minister Khalid al-Falih said on Wednesday. “A bank for exports with a capital of
30 billion (riyals) will be established to encourage and support exports, and 5 billion riyals have been
allocated as a first installment this year,” he said in a speech.

ENERGY PRICES
Saudi Arabia has approved a new round of energy price hikes and a cash handout system for low- and middle-income citizens to offset the impact of the changes, fresh steps in a year-old austerity programme amid low crude prices.
The cabinet approved the “gradual correction of pricing for some energy products”, including electricity tariffs, state news agency SPA said. The kingdom will announce increases in the domestic prices of gasoline, jet fuel and diesel in the first quarter of next year, bringing prices up into line with global benchmarks, the energy ministry said.
The electricity regulator said
new tariffs for households and commercial establishments would be
applied from January 1.
Tariffs for all but the largest residential users will more than triple, albeit from a very low base.Tariffs would not change for industrial and government users, the regulator said. The government also approved the outlines for a system of financial allowances to help low- and middle-income households cope with costs of its economic reforms, which was first announced last year and is set to launch on December 21.
In a presentation of the programme, the Citizens Account, labour ministry officials said about 3.7 million households signed up, representing some 13 million total beneficiaries, but that not all would be approved for eligibility.
Ministry officials declined to answer questions on how much the overall programme would cost, how much compensation the beneficiaries would get or what portion of
applicants would be approved.

Draft bankruptcy law approved
DUBAI / Reuters

Saudi Arabia’s Shura Council, a top advisory body to the government, has approved a draft bankruptcy law in a step towards modernising the economy and boosting growth in the private sector, a government statement said on Wednesday.
The draft law, consisting of 231 articles in 17 chapters, regulates bankruptcy procedures such as settlements and liquidation, for individuals as well as local and foreign companies, the statement said. It did not say when the law would be approved by the cabinet and promulgated, but Minister of Commerce and Investment Majid bin Abdullah al-Qasabi said in September that it was expected to take effect by the end of the first quarter of 2018.