Saudi Arabia’s central bank reserves rose for the first time in over a year, even as low oil prices hinder government efforts to overall an economy dependent on energy exports.
Net foreign assets at the Saudi Arabian Monetary Agency increased to US$493.2 billion in June from $491.7bn in the previous month, according to a monthly report published on its website. It was the first increase since May 2016, according to data compiled by Bloomberg.
The rise is surprising, “especially given that the government’s deposits with the central bank continued to fall in the month,” said Monica Malik, the chief economist at Abu Dhabi Commercial Bank. The increase “could be linked to investments strategies of the government and related flows”, she said.
The IMF on Friday lowered its forecasts for Saudi economic growth this year to “close to zero” due to lower crude prices and austerity measures. The economy contracted in the first quarter for the first time since 2009, illustrating the scale of the challenge facing the crown prince Mohammed bin Salman, as he implements his blueprint for a transition away from oil dependency.
Saudi foreign assets climbed as high as $737bn in August 2014 before beginning a steady decline as the kingdom’s revenue from oil sales dropped.
* Bloomberg
COMPANY%20PROFILE
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Company%20Profile
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The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
Easter%20Sunday
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