Agreements

Agreements

Amwaly Agreement

Dar Attadawlat signs an agreement with "Amwaly" to find solutions to the financial default

Amwaly Financial Advisory Office (non-securities) recently signed a strategic agreement with Dar Attadawlat Exchange, which is in the interest of individuals with financial difficulties or financial distress through Dar Attadawlat debt settlement program under the theme "Financing solutions for livelihood swell". Dr. Samar Al Qahtani, founder and General Manager of Amwaly, explained that clients of all levels consider the culture of financial planning and savings to be new and as a luxury and not a necessity. She continued: "The importance of this agreement with Dar Attadawlat first is that it is an independent company in the sense that it chooses the best offer for the customer without imposing the services of one bank without the other, as well as the existence of a category of financial planning service customers who need to settle their personal debts as a first step in the process of regulating their financial lives. Dr. Samar said that the concept of financial planning in Saudi Arabia is limited to two cases, the first as a service provided by banks, which it provides to its customers, but it sells through it its products and some of them require a minimum balance in the customer's personal account and the second case of his existence as an awareness campaign for the community. "Based on the results of a survey of household spending and income provided by the Department of General Statistics and Information, the average monthly expenditure of Saudi households is 15,367 riyals and their average monthly income is 13,610 riyals, which shows the urgent need for an independent financial planning service provider." Amwaly office is the first independent office in Saudi Arabia to provide financial planning services to individuals and families to help them achieve their financial goals under an approved financial scheme. The Financial Planning Service atAmwalyis also a consultancy service provided within a range of financial advisory (non-securities). Ahmed Al Hamdani, General Manager of Dar Attadawlat, said the new partnership reflects our commitment to customers in providing the first level of service and adding everything that is new and in the customer's interest to our list of services. Al-Hamdani added that solving the problem of the client's stumble by settling his debts and then submitting a financial plan to ensure to a large extent that the client does not fall back into the risk of financial stumbles, since during the past years we have found a category of our clients repeat ing the same financial mistakes for not having the scientific tools for proper financial planning and here is the importance of partnership with my money office. The main objective of the partnership is to improve the financing experience of clients and enable them to have a better financial life. The high percentage of personal consumer loans among individuals, which exceeded the 322.8 billion riyals barrier, including 9.6 credit card debts and 94.2 billion riyals in real estate loans (as published in the Monetary Foundation's statistics bulletin for the first quarter of 2015), is a challenge for traditional financial service providers in the market.

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Saudi budget
02 May 2020

Saudi budget: Strong financial fundamentals despite the deficit

The Saudi Ministry of Finance (MoF) has announced the financial results of the budget for first quarter of this year. The results showed financial deficit of SAR. 34 billion as a result of total public expenditures of SAR.226 billion exceeding total revenues of SAR. 192 billion, by 15%. The results reflected a reduction of 22% in the total revenues achieved in the first quarter of this year compared with the same quarter of last year. Such reduction is attributed to the drop in the oil and non-oil revenues by 24% and 17% respectively. The main reason behind the reduction in the oil revenues, was the fluctuations in the world oil prices and the disruption in the supply and demand in the oil marker, while the reduction in the non-oil revenues was due to the reductions in the revenue generated from taxes levied on goods and services and other taxes, which they have dropped by 17% and 71% respectively. It is worth pointing out that the main reason behind the increase in the total expenditures in the first quarter of this year was due to the increase in the government spending on goods and services and other expenses by 74% and 32% respectively from the same quarter of the previous year. The government has financed the budget deficit by raising internal and external debit of SAR. 11.2 billon (internally) and 18.5 billion (externally) and in addition by with the withdrawal of SAR. 9 billion from the current account.  It is worth noting that the government has borrowed more than what was needed to finance the existing deficit (approximately SAR.39 billion) on the assumption that the excess amount will be used to finance future deficit in the current year. As a result of the internal and the external (issuances or borrowing) debit during the first quarter of this year, the size of public debt has increased from about SAR. 678 billion at the beginning of the first quarter of this year to SAR. 723 billion at the end of the quarter and the volume of the internal issuances or borrowings amounted to SAR. 26.8 billion, while the volume of the external issuances or borrowings amounted to SAR. 18.8 billion. Despite the budget deficit recorded in the first quarter of this year, yet I believe that the fundamentals of the financial position of the Saudi government is strong, especially when considering the substantial reserves in foreign currencies which ranks the third in the world and the low deficit figure as a percentage to GDP of 4.5% in 2019. Riyad Daily

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