JEDDAH: Saudi Arabia’s consumer spending is beginning to recover, as indicated by the 11.4 percent year-on-year increase in the value of point-of-sale (POS) transactions to SR16.5 billion in April 2017, said a report issued by Al-Rajhi Capital on Tuesday.
The report said that the strong POS data was likely supported by the reinstatement of allowances for government employees announced in the last week of April.
It said that the Kingdom’s cost of living index continued in the deflation territory in April 2017 for the fourth consecutive month.
Meanwhile, credit to the private sector and deposits mirrored each other in April, both rising 0.2 percent month-on-month, resulting in the loan-to-deposit ratio remaining flat at 87.4 percent.
On a sequential basis, the report added, deposits have now grown for two consecutive months, after registering declines in the previous three months.
This is likely attributable to the government paying its outstanding dues, which could also partially explain the 1.7 percent month-on-month decline in reserve assets in April, despite the $9 billion international Islamic bond sale by the government last month.
The report said that the decline in foreign reserves might also be due to the Kingdom making its planned investments like the $100 billion SoftBank Vision Fund, to which Riyadh has committed $45 billion.
Consumer spending picks up in Saudi Arabia: Report
Consumer spending picks up in Saudi Arabia: Report
Aramco awards Italy’s Saipem a new $500m offshore contract
RIYADH: Italian oilfield services company Saipem has been awarded a $500 million offshore contract in Saudi Arabia under its existing long-term agreement with oil firm Aramco.
The contract covers the full engineering, procurement, construction, and installation of a 48-inch trunkline, extending around 65 km offshore and 12 km onshore. The work also includes related subsea facilities at the Safaniya Oil Field, which is among the largest offshore oil fields in the world, according to a statement.
This latest award further cements Saipem’s long-standing presence in the Kingdom and deepens its partnership with Aramco, as well supporting Saudi Arabia’s goal of increasing localization in the oil and gas sector from 40 percent to 75 percent by 2030.
The newly released statement said: “Offshore operations will be carried out by Saipem’s construction vessels currently deployed in the region, while fabrication activities will be executed at Saipem’s Saudi fabrication yard, Saipem Taqa Al-Rushaid Fabricators Co. Ltd., in Dammam, further helping to strengthen the company’s industrial footprint in the Kingdom.”
It added: “Project execution is expected to leverage Saipem’s proven experience in delivering strategic pipelines and offshore infrastructure in the region, combined with its advanced engineering capabilities.”
The statement further indicated that under the new contract, activities will be carried out in line with the highest safety, quality, and environmental standards that define Saipem’s operations, ensuring efficiency and reliability at every stage.
By combining strengthened local capabilities with advanced technical expertise, the project is set to support the effective development of key energy infrastructure in the Kingdom.
Saipem, which is listed on the Milan Stock Exchange, operates as a “one company” organized into several business lines, including asset-based services, drilling, energy carriers, offshore wind, and sustainable infrastructures.
The firm owns five fabrication yards, along with a fleet of 17 construction vessels and 12 drilling rigs, and is present in more than 50 countries.
