Saudi Arabia achieves major financial milestone with IPSAS adoption

Saudi Arabia has achieved a significant milestone in public financial management by successfully transitioning to International Public Sector Accounting Standards on an accrual basis.

This move highlights the Kingdom’s commitment to modernizing its public sector financial practices as part of its Vision 2030 agenda.

The adoption of these global standards underscores Saudi Arabia’s efforts to enhance transparency, accountability, and decision-making within its government operations. The announcement was made during the Saudi Public Sector Accounting Forum, held on Dec. 8 in Riyadh, under the patronage of Finance Minister Mohammed Al-Jadaan.

Speaking at the event, Abdulaziz Al-Furaih, chairman of the steering committee at the Ministry of Finance, said: “Today marks a significant milestone, made possible by the unwavering support of our visionary leadership, which has fully backed this strategic national project.”

The forum highlighted Saudi Arabia’s transition to accrual-based accounting and its adoption of IPSAS.

Ian Carruthers, chairman of the International Public Sector Accounting Standards Board, emphasized that the Kingdom’s success was driven by Vision 2030 and the strong leadership of the Ministry of Finance.

Abdullah Al-Mehthil, assistant deputy minister of finance for policies and governance, explained: “Accrual accounting enhances the Kingdom’s ability to make strategic decisions by providing detailed insights into long-term financial obligations and improving the overall quality of financial reporting.”

A key focus of the forum was the cultural transformation needed within the public sector to sustain these changes. Mohammed Al-Nwaiser, assistant deputy minister for financial affairs and accounts at the Ministry of Finance, stressed the importance of evolving financial practices to ensure long-term sustainability following the transition.

Abdullah Majrashi, CEO of the Financial Skills Center, emphasized the center’s role in improving financial literacy and building capacity within the public sector workforce. Ross Smith, program leader and technical director at IPSASB, noted that while resistance to such transitions often stems from knowledge gaps, Saudi Arabia has made remarkable progress through its well-structured approach.

Hamad Al-Kanhal, deputy minister of finance for financial affairs and accounts, discussed the broader significance of the transformation, stating, “This is not just the implementation of an accounting standard; it is a comprehensive change management process that requires continuous commitment and collaboration across all relevant entities.”

He further emphasized that the shift would enable the government to manage its financial resources more efficiently and achieve its strategic objectives.

At the forum’s conclusion, several government entities were honored through the “Pioneers of Accrual Accounting” award program.

The Ministry of Communications and Information Technology, King Saud University, and the Saudi Water Authority received the Diamond Award for their excellence in business continuity following the transition and for issuing interim financial statements.

Other awards included recognition for governance and project management to the Digital Government Authority, innovative solutions to the National Center for Waste Management, and technological enablement to the Ministry of Environment, Water, and Agriculture.

The forum, which coincided with Saudi Arabia’s hosting of the IPSASB meetings, attracted over 600 attendees, including local and international experts, standard-setting legislators, and leaders from various Saudi government entities.

https://arab.news/82hnx

Diversity, creativity steal the spotlight at Noor Riyadh festival

Arab media professionals attending the Noor Riyadh festival have highlighted the significant artistic activity in Saudi Arabia, noting that the movement drives creativity and innovation in the Kingdom’s contemporary arts scene.

Noor Riyadh serves as a platform for cultural exchange, aligning with Riyadh Art’s goal of nurturing local talent and boosting the capital’s cultural economy.

The festival, held under the theme “Light Years Apart” until Dec. 14, features artworks by over 60 artists across three hubs: King Abdulaziz Historical Center, Wadi Hanifa, and JAX District.

Some 43 international artists from countries including Australia, France, Germany, Hungary, Italy, Japan, Montenegro, the Netherlands, Poland, Russia, Slovenia, South Korea, Spain, Turkiye, the UK, the UAE, and the US are showcasing their work, in addition to 18 Saudi artists.

Sara Al-Abri, a journalist at Oman’s newspaper Al Roya, told Arab News that the festival stood out for its diverse artworks, with the use of modern technologies like digital lighting and interactive art creating a unique experience.

She said: “What particularly caught my attention was the innovative integration of art and technology, adding depth and beauty to the venue.”

She added that the event also embodied Saudi Vision 2030, which promotes culture and the arts.

“I noticed a growing interest in contemporary and digital arts in Saudi Arabia, alongside traditional arts,” she said.

Mohammed Alafthan, TRT World correspondent in the GCC (Gulf Cooperation Council), said contemporary arts in the Kingdom were making enormous strides and almost racing against time to keep up with global advancements, adding: “Saudi society, in all its segments, has a deep appreciation for creativity and visual arts.

Source:https://arab.news/6rjq5

Egypt calls for consensus, reconstruction in Syria after Assad’s fall

Egypt on Sunday urged for national consensus and reconstruction in Syria, hours after the ousting of President Bashar Assad by militants who seized control of the capital Damascus.
In a statement by the foreign ministry, Egypt urged all Syrian parties “to unify objectives and priorities and initiate a comprehensive and inclusive political process that lays the groundwork for a new phase of consensus and internal peace.”
It said Egypt is committed to working with regional and international partners to help the Syrian people, facilitate reconstruction efforts and support the safe return of refugees to their homeland.
Militant group Hayat Tahrir Al-Sham and allied factions began a lightning offensive on November 27, seizing swathes of the country from government hands and entering Damascus early Sunday.
The Egyptian foreign ministry, in the statement, said that it affirms “its stand alongside the Syrian state and people and supports them in preserving Syria’s sovereignty, unity and territorial integrity.”
On Thursday, when militant forces were still advancing toward the capital Damascus, Egyptian foreign minister Badr Abdelatty expressed concern over the developments in Syria in a phone call with Syrian foreign minister Bassem Sabbagh.
He affirmed “Egypt’s position in support of the Syrian state and its national institutions.”

Source:https://arab.news/6bgvh

Closing Bell: Saudi main index rises to close at 11,955

Saudi Arabia’s Tadawul All Share Index rose on Sunday, gaining 23.39 points, or 0.20 percent, to close at 11,955.24.

The total trading turnover of the benchmark index was SR4.58 billion ($1.22 billion), as 158 of the stocks advanced and 70 retreated.

Similarly, the Kingdom’s parallel market Nomu gained 313.47 points, or 1.01 percent, to close at 31,215.27. This comes as 58 of the listed stocks advanced, while 29 retreated.

The MSCI Tadawul Index gained 2.47 points, or 0.17 percent, to close at 1,497.49.

The best-performing stock of the day was Al-Baha Investment and Development Co., whose share price surged 10 percent to SR0.33.

Other top performers included MBC Group Co., whose share price rose 5.31 percent to SR57.50 as well as Saudi Chemical Co., whose share price surged 4.9 percent to SR10.28.

Dr. Soliman Abdel Kader Fakeeh Hospital Co. recorded the biggest drop, falling 3.81 percent to SR68.20.

National Co. for Learning and Education also saw its stock prices falling 3.67 percent to SR230.80.

Meanwhile, Bawan Co. also saw its stock prices drop 2.92 percent to SR48.15.

On the announcement front, Jahez International Co. for Information System Technology said it will list and begin trading its shares on the main Saudi market next Tuesday following its transfer from the parallel market, Nomu.

Sure Global Tech Co. announced it has signed a project to renew service licenses and provide technical support for applications with a governmental entity. According to a Tadawul statement, the project’s value exceeds 9 percent of the company’s revenue for the fiscal year ending Dec. 31, inclusive of value-added tax.

The project involves developing and maintaining applications for the governmental entity, including licensing, maintenance, technical support, and system development. The contract spans 850 days and is expected to positively impact the company’s financial statements in 2025 and 2026.

Sure Global Tech Co. ended the session at SR87.50, down 1.14 percent.

The Mediterranean and Gulf Cooperative Insurance and Reinsurance Co. announced it has received approval from the Insurance Authority to renew its license for insurance and reinsurance activities.

MEDGULF’s stock closed at SR21.10, up 0.95 percent.

Meanwhile, Yanbu Cement Co.’s Board of Directors approved the distribution of SR78.75 million in cash dividends to shareholders for the second half of 2024. A bourse filing revealed that 157.5 million shares are eligible for a dividend of SR0.5 per share, representing 5 percent of the share’s par value.

Source:https://arab.news/bvxcu

Kingdom in contact with all Syria stakeholders, says Saudi official

Saudi Arabia has been communicating with all regional actors on Syria and is determined to do what is possible to avoid chaos following the ouster of President Bashar Assad, a Saudi official said on Sunday.

“We are in constant communication with Turkiye and every stakeholder involved,” the official told Reuters, adding that the Kingdom was not aware of Assad’s whereabouts.

His failure to re-engage several regional actors and the opposition was to blame for his downfall, the official said.

“The Turkish government attempted to engage and coordinate with the Syrian government, but these overtures were met with refusal,” he said.

“The current situation is a direct consequence of the Syrian government’s lack of engagement in the political process. This outcome reflects the inevitable result of such intransigence.”

Assad went to Saudi Arabia in 2023 to attend an Arab League summit, after a 12-year suspension.

“The hope was that this move would influence the Syrian government to engage more constructively with the opposition and the various stakeholders within Syria and in the region, rather than allowing the existing stalemate and fragile peace to be taken for granted,” the official said.

“We emphasized that the situation should not be underestimated, as it remained precarious. Unfortunately, this message did not result in any meaningful action from the Syrian side.”

The official said events in Syria showed some positive aspects that he hoped would continue.

“Notably, the transition has occurred without bloodshed, which is encouraging. Additionally, we appreciate the statements from various stakeholders emphasizing the importance of protecting state institutions, the sovereignty of Syria, and the rights of minority groups,” he said.

“We hope to see these positive trends continue and are committed to doing everything we can to maintain this momentum.”

Source:https://arab.news/wx7dq

Jordan’s inflation rises 1.56% as key goods and services drive up costs

Jordan’s Consumer Price Index surged 1.56 percent from the beginning of the year through October to reach 110.58 points compared to 108.88 during the same period in 2023.

Higher prices of specific goods and services largely drove this rise. Personal items saw the largest increase, up 11.6 percent, followed by water and sanitation services, which rose by 7.34 percent, according to Petra news agency.

Other significant contributors included union dues, increasing by 5.86 percent, rental costs by 3.86 percent, and tobacco products by 3.53 percent.

For October alone, the consumer price index reached 110.61 points, marking a 0.76 percent increase from the same month of 2023

The monthly rise was influenced by a hike in prices of personal items by 21.38 percent, an increase of water and sanitation services by 7.34 percent, a rise in tobacco prices of 6.77 percent, and food seasonings and enhancers up 4.82 percent.

These increases were partially offset by declines in categories such as fruits and nuts, down by 6.92 percent; vegetables and pulses, down by 6.31 percent; and furniture and carpets, down by 3.04 percent, as well as fuel and lighting, down by 2.74 percent.

The CPI remained stable from September to October. Minor price drops were recognized in several categories, including meat and poultry, which fell by 1.81 percent; fruits and nuts, down 1.24 percent; and culture and entertainment, which declined by 0.95 percent. Transportation costs decreased by 0.72 percent, while fuel and lighting saw a reduction of 0.65 percent.

In parallel, Jordan’s industrial production index recorded a cumulative increase of 0.48 percent through September, reaching 87.63 points compared to 87.22 points during the same period last year.

This rise was attributed to a robust performance in the mining sector, which surged by 8.34 percent, and electricity production, which increased by 5.41 percent. However, manufacturing output saw a slight decrease of 0.28 percent.

For September alone, the IPI rose 3.41 percent year-on-year to reach 89.83 points, supported by growth in manufacturing, up 3.35 percent, mining, up 7.46 percent, and electricity production, up 0.71 percent.

However, the index dropped by 1.17 percent from August to September, primarily due to a 14.63 percent decrease in electricity output and a 4.47 percent decline in mining, while manufacturing remained stable with a minor 0.01 percent increase.

These economic indicators reflect ongoing inflationary pressures on Jordan’s consumer sector alongside moderate growth in industrial output, underscoring the mixed economic conditions influenced by domestic and global factors.

Source:https://arab.news/zyut8

Jordan Industrial Cities Attract 16 New Investments Worth JOD 11 Million in Karak

Scion Industrial Engineering

The Jordan Industrial Estates Company (JIEC) announced the attraction of 16 new industrial investments worth JOD 11 million to the Al-Hussein Bin Abdullah II Industrial City in Karak during the third quarter of this year.

These new investments are expected to create 300 job opportunities once fully operational.

With the latest additions, the total number of investments in the industrial city has risen to 56, bringing the total investment value to over JOD 47 million and generating approximately 500 jobs to date.

The JIEC praised Prime Minister Jafar Hassan’s visit to the industrial city and his meeting with investors, emphasizing the government’s ongoing support for the industrial sector.

The JIEC Director General Omar Juwaied highlighted that the Prime Minister’s visit reflects the government’s commitment to engaging with various sectors, particularly the industrial sector, as part of its economic modernization vision aimed at revitalizing the national economy.

He added that the government’s continuous efforts to support the industrial investment environment across Jordan’s industrial cities have led to economic growth, attracting new industrial investments and generating job opportunities.

Juwaied explained that the new investments span various sectors, including food, engineering, textiles, paper, cardboard, and construction materials.

He expressed optimism that more job opportunities will be created for the residents of Karak as the investments become fully operational over the next two years.

He noted that the government’s incentive packages for industrial investments in the city have been a major factor in attracting businesses, making it a top choice for investors.

He encouraged potential investors to take advantage of these incentives, particularly those requiring high electricity loads and large workforces.

The government’s incentives for industrial investments in Al-Hussein Bin Abdullah II Industrial City include reduced electricity rates for small and medium-sized enterprises, with discounts ranging from 25% to 75% for five years.

Additionally, the city is included in the Ministry of Labor’s productive branches program, which covers 50% of the minimum wage plus JOD 25 for social security and JOD 25 for transportation for three years.

The government also provides a 50% discount on container handling costs at Aqaba Port for goods exported from the city for three years.

Furthermore, the Ministry of Agriculture supports investors in the agricultural industries through its project to stimulate agricultural industries within industrial cities, covering rental costs for five years from the date of lease signing.

Source:https://www.fananews.com/language/en/jordan-industrial-cities-attract-16-new-investments-worth-jod-11-million-in-karak/

Jordan’s leather, textile industry creates 1,500 jobs in Jan-Sept 2024

Jordan’s leather and textile industry created 1,500 jobs in the first nine months this year, according to Ihab Qadri, who represents the sector in the Jordan Chamber of Industry (JCI).
The number of Jordanian workers in that industry increased by 4 per cent year on year (YoY) during the period, Qadri told a domestic news agency.

This clearly demonstrates the sector transforming the principles of the government’s Economic Modernisation Vision into tangible job opportunities, he emphasized.

The number of Jordanian workers in the sector has now exceeded 29,000, he said.

Qadri affirmed that the sector can generate thousands of direct jobs provided several enabling factors, including expedited provision of skilled local labour through collaboration between the Sector Skills Council and vocational training centres as well as the development of curricula and training programmes, are addressed.

The Textile Cluster project, which can enhance value-added supply chains through vertical and horizontal integration, also needs support, he noted.

The sector has seen a rise of over 21 per cent in exports over the past seven months and a return to a positive growth trajectory, he said.

The implementation of the Leather and Textile Sector Strategy launched by the ministry of industry, trade and supply includes an ambitious vision for the country to turn a regional hub for fast fashion, he added.

Source:https://www.fibre2fashion.com/news/industrial-textiles-news/jordan-s-leather-textile-industry-creates-1-500-jobs-in-jan-sept-2024-298686-newsdetails.htm

Lebanese Investor Establishes Chocolate Factory in Madaba Industrial Estate with a Cost of 15 Million JOD

Scion Industrial engineering

the investment-friendly environment and incentives in Jordanian industrial estates, which encouraged a Lebanese investor at the beginning of 2021 to establish a chocolate and candy manufacturing project in Jordan. The favorable investment climate in the Kingdom, particularly the strategic location and incentives in Madaba Industrial Estate, played a significant role in this decision.

Today, investor Bassam Al-Gharawi begins his initial production operations in Madaba Industrial Estate with a 25% production capacity and an initial export volume of 1.5 million JOD, expected to reach 20 million JOD annually. The project has created 150 job opportunities for residents of Madaba across various professions and specializations.

Benefiting from the incentives in Madaba Industrial Estate, this factory is among the largest companies attracted to the estate, occupying around 20 dunams with three floors built using the latest engineering techniques. Its high-quality products are exported to various global markets, including the Gulf, the USA, Brazil, and Australia.

Believing in continuous improvement, Al-Gharawi has established a development and training unit to build employee expertise, aiming for a unified management approach between Jordan and Lebanon. The company has plans to enhance workers’ skills, culture, and behavior.

Al-Gharawi chose Jordan due to its strategic location, political and security stability, and the benefits provided to industrial investments, along with the export markets accessible to Jordanian products. He mentioned that the project, in its various production phases, aims to achieve full production capacity, providing approximately 1,000 job opportunities for the residents of Madaba.

He highlighted the factory’s architectural system, costing 15 million JOD, which includes designated areas for production lines, packaging, shipping, and comprehensive employee facilities.

The Jordan Industrial Estates Company, managing Madaba Industrial Estate, stated that this investment adds significant value to the estate’s investment movement, offering high-quality Lebanese-Jordanian products to global markets and creating awaited job opportunities for Madaba’s youth.

General Manager Omar Jouied welcomed all Arab investments in Jordanian industrial estates, which have thrived in the attractive investment climate. He invited Lebanese, Arab, and foreign investors to benefit from the opportunities in Jordanian industrial estates, aiming for the desired integrated Arab industry.

Jwaid announced that the number of investments in Madaba Industrial Estate has reached 34 industrial companies with a total investment of approximately 22 million JOD, expected to provide around 1,400 job opportunities in their initial operational phases.

Madaba Industrial Estate is located in Madaba Governorate, developed in its first phase over an area of 250 dunams. It is 40 km from Amman and 13 km from the governorate center, close to Queen Alia International Airport and the desert highway connecting the south and north of the Kingdom. Due to high investment demand, the Jordan Industrial Estates Company has started constructing new industrial buildings (the third phase) over an area of 11,000 square meters after utilizing all buildings established over 18,000 square meters.

Source:https://www.jiec.com/en/news/207/