The human and economic toll of the lockdowns against the coronavirus mounted Thursday as India struggled to feed the multitudes, Italy shut down most of its industry, and a record-shattering 3.3 million Americans applied for unemployment benefits in a single week.
As the number of infections worldwide reached a half-million and deaths climbed past 23,000, the damage to people’s livelihoods and their well-being from the effort to flatten the rising curve started to come into focus.
In India, where the country’s 1.3 billion people were under orders to stay home, legions of poor were suddenly thrown out of work, and many families were left struggling for something to eat.
“Our first concern is food, not the virus,” said Suresh Kumar, 60, a bicycle rickshaw rider in New Delhi whose family of six relies on his daily earnings of 300 rupees, or $4. “I don’t know how I will manage.”
India has the world’s second-highest number of people living in extreme poverty. Rickshaw drivers, produce peddlers, maids, day laborers and other low-wage workers form the backbone of the economy, and many live day to day on their pay and have no savings to fall back on.
The Indian government announced a 1.7 trillion rupee ($22 billion) economic stimulus package that will deliver monthly rations of grain and lentils to a staggering 800 million people.
Around the globe, the death toll rose to about 8,200 in Italy, 4,100 in Spain and 1,700 in France, including a 16-year-old. The US had more than 1,000 deaths, about 400 of them in New York State, the worst hotspot in the nation. Most of those victims were in New York City, where hospitals are getting swamped.
Louisiana was quickly becoming another smoldering hotspot. The number of new cases there jumped by more than 500 Thursday, for a total of over 2,300, with 86 deaths, including a 17-year-old, the health department said. The higher infection numbers reflected an increase in testing.
From New York’s Fifth Avenue and London’s Piccadilly Circus to the boulevards of Paris and the streets of Rome and Madrid, restaurants, hotels, airlines, giant chains and small shops are all shuttered, and factories across both continents have ground to a halt, as cities, states and entire countries have ordered the closing of nonessential businesses and instructed people to stay home.
Companies in Europe are laying off workers at the fastest pace since 2009, according to surveys of business managers. And the US is bleeding jobs as well: The number of Americans applying for unemployment benefits last week was nearly five times the old record, set in 1982.
Dann Dykas, 37, of Portland, Oregon, was laid off from his job helping design and set up displays for trade shows.
“Everything is so surreal,” he said. “I can’t even get an interview for another job, and we now have to worry more about being careful and taking care of ourselves.”
In Georgia, 33-year-old Ian Smith was let go from his job at a wine bar and is working “side hustles” and relying on the generosity of friends.
“On my worst days, it’s hopelessness, and on some of my better days, it’s ‘What possibility can I create in all of this?’” he said. “I can’t pretend that I always feel that, though.”
In a rare positive sign, stocks rallied on Wall Street for the third straight day after an unprecedented $2.2 trillion economic rescue package to help businesses, hospitals and ordinary Americans pull through the crisis won passage in the Senate. The Dow Jones Industrial Average jumped more than 1,350 points, or over 6%.
The rescue plan, which is expected to be voted on in the House on Friday, would dispense checks of $1,200 per adult and $500 per child.
President Donald Trump, meanwhile, announced that federal officials are developing guidelines to rate counties by risk of virus spread, as he aims to ease the restrictions meant to slow the outbreak.
Italy, the eurozone’s third-biggest economy and a major exporter of machinery, textiles and other goods, became perhaps the first Western developed nation to idle most of its industry, extending a shutdown on smaller, nonessential businesses to heavy manufacturers.
Among the companies in Italy that have shut down or rolled back production: Fiat Chrysler, Ferrari, Pirelli tires and Luxottica eyewear, maker of Ray-Bans and Oakleys.
The industrial lobby Confindustria estimates a cost of 70 billion to 100 billion euros ($77 billion-$110 billion) of national wealth a month if 70% of companies are closed, as anticipated.
“We are entering a war economy,’’ said Confindustria President Vincenzo Boccia.
Elsewhere around the world, South Africa, with the most industrialized economy in Africa, headed into a three-week lockdown starting Friday. The country is already in recession, with an unemployment rate of 29%.
And Britain unveiled another relief effort, this time aimed at the gig economy, many of whose workers are facing financial ruin. The government will give the self-employed grants equal to 80% of their average monthly profits, up to 2,500 pounds ($2,975) per month.
In other developments:
__ In New York, the state’s death toll jumped by 100 in one day, pushing the number to 385, Gov. Andrew Cuomo said. He added that experts expect the number to increase as critically ill patients who have been on ventilators for several days succumb to the virus. “That is a situation where people just deteriorate over time,” Cuomo said.
__ China said it is temporarily barring most foreigners from entering as it tries to curb imported cases. Reports of new infections from inside the country have stopped.
__ In the Mideast, Saudi Arabia announced a total lockdown on the capital, Riyadh, and Islam’s two holiest cities, Makkah and Medina, in addition to a nationwide curfew. In the United Arab Emirates, authorities announced an overnight weekend lockdown and used drones to tell people to stay home.
__ The leaders of the Group of 20 major industrialized nations held a video summit for safety reasons and vowed to work together to confront the crisis but made no specific commitments.
__ In Brazil, the country’s governors are defying President Jair Bolsonaro over his call to reopen schools and businesses, dismissing his argument that the “cure” of widespread shutdowns is worse than the disease. As of Thursday, the country had more than 2,500 cases and 59 deaths.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia and death.
So far, more than 120,000 people have recovered, according to a running count kept by Johns Hopkins University.
Half-million infected worldwide as economic toll rises
https://arab.news/zcts5
Half-million infected worldwide as economic toll rises
- Companies in Europe are laying off workers at the fastest pace since 2009
Saudi Chambers launch first national committee for military industries
RIYADH: Military industries are set to receive a boost with the Federation of Saudi Chambers announcing the formation of the first special national committee of its kind.
This marks the first time that a committee focused on the defense sector has been formed under the umbrella of the private sector, represented by the Saudi body.
Its purpose is to collaborate closely with relevant authorities and entities, such as the General Authority for Military Industries, the Saudi Arabian Military Industries, and others, the Saudi Press Agency reported.
This initiative aligns with the federation’s new strategic directions, aimed at aligning with the modern economic sectors highlighted in Saudi Arabia’s Vision 2030.
The vision emphasizes the organization and localization of the Kingdom’s military industries sector, with a target of achieving more than 50 percent nationalization by 2030.
The federation also announced the election of Salman Al-Shathri as president and Ziyad Al-Muhaimid as vice-president for the session 2023-2026.
The Federation of Saudi Chambers serves as the umbrella and sole legitimate representative of the Kingdom’s business community, encompassing all its diverse groups, sectors, and regions.
Regional startups join forces to further propel the ecosystem
CAIRO: Startups across the Middle East and North Africa region are increasingly collaborating through strategic partnerships to enhance the entrepreneurial ecosystem.
Ventures from various industries are forging alliances, and signing agreements to bolster expansion, penetrate new markets, and enhance customer satisfaction initiatives.
At the forefront of these strategic partnerships, the Kingdom’s National Technology Development Program has joined forces with Outlier Ventures, a prominent global Web3 accelerator, to bolster the technology sector in Saudi Arabia.
Under the memorandum of understanding, the Base Camp Web3 accelerator program aims to support and cultivate the growth of promising Web3 startups in the Kingdom.
Participating startups will benefit from Outlier Ventures’ expertise, receiving guidance on product development, entity structuring, and token design from a team of in-house experts.
Additionally, these startups will gain invaluable insights and networking opportunities through direct interactions with leading mentors and investors in the Web3 domain.
“Under Vision 2030, the rapid pace of change and development is visible across all sectors of the economy. The achievements are testimony to the level of dedication and focus driving the Kingdom forward. Our strategic collaboration underscores our joint dedication to nurturing technological progress,” said Stephan Apel, CEO and founding partner of Outlier Ventures.
This collaboration marks the introduction of the first deep tech Web3 accelerator program in Riyadh, slated to begin later in 2024.
The initiative aligns with Saudi Vision 2030 and Outlier Venture’s commitment to nurturing global entrepreneurial talent, specifically targeting the burgeoning Web3 ecosystem within the Kingdom.
Inbox Business partners with AstroLabs for expansion in KSA
Pakistan’s Inbox Business Technologies sealed a partnership with business facilitator AstroLabs to support the former in entering the Saudi market.
Inbox Business Technologies, under the ownership of the Dawood Group, is renowned for its extensive experience in delivering transformative innovation across various technology domains in Pakistan.
With a workforce exceeding 1,800 professionals, Inbox is well-equipped to offer services in business applications, enterprise managed services, cloud migration, digital security, and cybersecurity.
The collaboration with AstroLabs will establish Inbox Business Arabia, the company’s Saudi branch, to capitalize on the burgeoning digital sector, enabling a timely and strategic market expansion in the Kingdom.
“Inbox Technologies Arabia is actively expanding its operations within Saudi Arabia, with several key projects currently in progress,” said Mohsin Ali, CEO of Inbox Business Technologies.
“Among these initiatives is the development of a content management database specifically for a multinational corporation based in Jeddah. Additionally, we’re playing a crucial role in delivering IT services and overseeing strategic programs for the nation’s foremost IT enterprise, along with a company owned by the Public Investment Fund,” he added.
True Gamers partners with Takefluence to introduce ambassador program
True Gamers and Takefluence have partnered to unveil an ambassador program dedicated to the gaming community.
This innovative initiative aims to empower gaming enthusiasts and content creators, providing them with a platform to express their creativity, engage with broader audiences, and convert their gaming passion into tangible opportunities.
“This partnership reflects a shared vision for the future of Gaming, eSport and content creation in the region, highlighting the synergies between technological innovation and community engagement,” said Archie Rudyuk, CEO and co-founder of Takefluence.
True Gamers is a UAE-based esports gaming cafe network with 150 outlets globally.
Takefluence is a platform that automates the onboarding, reporting and payouts for brands looking to launch their ambassador and creator campaigns, engage audience, and leverage influencers and user-generated content.
“By combining our resources and expertise, we are not just offering a platform for gamers and creators but also setting the stage for the next generation of gaming content. This initiative is about recognizing and amplifying the talents within our community, ensuring that the Middle East becomes a main hub of innovation and creativity in the global gaming scene,” said Vlad Belyanin, co-founder of True Gamers.
Deliveroo UAE teams up with Kayali to offer luxury fragrances
Deliveroo UAE has forged a partnership with Kayali, the prestigious perfume brand created by beauty entrepreneur Mona Kattan.
This collaboration marks a significant development in on-demand shopping, with Deliveroo being the exclusive aggregator to feature Kayali’s luxury fragrances on its new shopping vertical.
This move expands Deliveroo’s range of offerings and showcases its commitment to providing customers with convenient and premium shopping experiences.
Through this partnership, Deliveroo underscores its position as a trusted platform for brands and a provider of unique value to its customers across the UAE.
MBC Group acquires significant stake in Anghami
Saudi Arabian media giant MBC Group, via its MBC Ventures division, has acquired over 4 million ordinary shares in the Nasdaq-listed music streaming service Anghami.
This purchase secures MBC Group a 13.7 percent ownership in Anghami and raises its stake’s value to $6.48 million from $4.074 million.
The acquisition also coincided with a substantial 59 percent increase in Anghami’s share price on March 20, which soared to $1.59 from $1 the previous day.
Ahlan App secures $3m in funding
Bahrain’s Ahlan App, a loyalty program and delivery service, has secured a $3 million investment at a $15 million valuation in a round led by Hope Ventures, with contributions from Al Rajhi Holdings and other angel investors.
Founded in 2021 by Faisal Rashed, Ahlan rewards users with cashback for dining in, picking up, or home delivery services.
This fresh influx of capital is earmarked for increasing Ahlan’s market presence, emphasizing its commitment to enhancing customer loyalty and expanding its services.
Egypt’s Sprints.ai raises $3m
Sprints.ai, an Egypt-based edtech firm, has raised $3 million in a bridge round led by Disruptech Ventures, with contributions from EdVentures and Challenge Fund for Youth Employment, among others.
Founded by Ayman Bazaraa and Bassam Sharkawy in 2020, Sprints.ai is addressing the tech talent shortage in the Middle East and Africa region by offering a guaranteed hiring program to prepare qualified candidates for the job market.
This new funding will support Sprints.ai’s ambitious plan to penetrate 10 new markets, reinforcing its mission to bridge the educational gap in technology sectors across the region.
Saudi e-commerce thrives as sales using Mada cards reach $3.76bn in February
RIYADH: Saudi e-commerce sales using Mada cards reached SR14.11 billion ($3.76 billion) in February – an annual increase of 25 percent, the Kingdom’s central bank has revealed.
This figure includes transactions through online shopping, in-app purchases and e-wallets, and excludes transactions by Visa, MasterCard and other credit cards.
Mada serves as Saudi Arabia’s national card payment scheme, aimed at advancing digital payments within the country, particularly in supporting e-commerce, point of sales, and ATM growth. Linked directly to the cardholder’s bank account, it enables real-time, secure, and reliable transactions for a variety of purposes, including purchasing, cash withdrawals, and online payments.
The number of e-commerce transactions also increased by 44 percent on a year-on-year basis to reach more than 84 million in February.
The shift in consumer behavior post-COVID-19, supported by regulatory reforms, robust internet infrastructure, and the continuous advancement of sophisticated e-commerce businesses, has been key drivers of the shift away from cash.
In the past three years, online sales in Saudi Arabia surged by almost 60 percent across various categories, with significant growth seen in media products, apparel, and footwear segments, according to the American International Trade Administration in a January commercial guide.
Additionally, the average spend per e-commerce user in the Kingdom rose by over 50 percent.
The organization anticipates continuous growth, projecting Saudi Arabia to reach 33.6 million e-commerce users by 2024, marking a 42 percent increase from 2019.
Factors contributing to this growth include the country’s 97 percent smartphone penetration rate, high mobile broadband subscriptions, and ranking as the 10th country globally for internet speed.
Moreover, 72 percent of Saudis over the age of 15 possess bank accounts highlighting the readiness of the population for digital transactions and online commerce.
The organization emphasized the prevalence of local platforms and the introduction of new entrants like Amazon Prime, which debuted in January 2021.
Other contributing factors include the government’s initiatives to enhance the sector’s regulatory framework, aimed at bolstering confidence among Saudis and encouraging the use of its platforms, with a focus on protecting consumers and businesses alike.
However, the organization also highlighted challenges for this sector, particularly the need to strengthen cyber-security measures to counter malicious emailing, which poses risks such as phishing scams exposing sensitive information like passwords, financial details, and personal data.
The shift to online shopping became apparent in the wake of the COVID-19 pandemic, significantly altering consumer behavior and impacting traditional retail outlets. The rise of e-commerce has proven essential, providing digital access to products and enabling businesses to adapt to changing market trends and consumer preferences.
This trend is reflected in data from the Kingdom’s central bank, also known as SAMA, showing a remarkable surge in e-commerce sales. In 2020, at the onset of the pandemic, sales increased by 279 percent, soaring from SR10.25 billion in 2019 to nearly SR39 billion.
This momentum continued in 2021 with a further annual rise of approximately 91 percent, reaching SR74 billion, and a subsequent increase of 65 percent in 2022 to SR123 billion. By the end of 2023, e-commerce sales through Mada cards had reached SR157 billion, underscoring the sector’s robust growth.
According to data from the German e-commerce database website, the top five online retailers in Saudi Arabia’s e-commerce sector for 2023 are jarir.com, nahdionline.com, amazon.sa, extra.com, and namshi.com.
Jarir.com leads the market with revenues of $452.8 million in 2023, followed by nahdionline.com with $330.1 million in sales, and amazon.sa with $328.5 million.
These top three online retailers collectively account for a market share of 38.7 percent among the top 100 stores in the Kingdom’s e-commerce market, as reported by the database.
The ranking is based on the top stores by net sales in the market for the year 2023.
According to a 2023 Deloitte Digital report, these companies are utilizing data and analytics to gain deeper insights into their customer base, tailoring their offerings to better meet their needs.
The Kingdom has come a long way from a population initially lacking trust in online retailers, limited payment options, and product diversity, to now holding the potential to become a thriving e-commerce market, according to the firm.
This transformation is particularly supported by the Saudi government’s implementation of various initiatives aimed at boosting the digital economy’s contribution to the Kingdom’s gross domestic product.
The adaptability of the regulatory framework and its adjustments to market dynamics have created an environment conducive to the growth of e-commerce and the flourishing of innovative technologies.
As the industry evolves, new payment methods are emerging, prompting the central bank to establish a sandbox for testing and regulating these innovations. This serves as a crucial platform for the industry to experiment with and adopt new technologies.
Additionally, the Communications, Space, and Technology Commission introduced a dedicated sandbox for delivery applications, streamlining operations and enhancing efficiency for e-commerce businesses.
Regulatory initiatives have facilitated the entry of major players like STC, and partnerships such as Aramco’s collaboration with Google Cloud have further supported and provided infrastructure for all participants in the e-commerce ecosystem, Deloitte added.
Furthermore, the establishment of free zones has played a pivotal role in simplifying logistics and expediting the movement of goods, thus bolstering Saudi Arabia’s e-commerce landscape.
Deloitte forecasts a remarkable surge in the sector, with a projected market volume of $23.46 billion by 2027. Additionally, the number of e-commerce users in the Kingdom is expected to reach 34.5 million by 2025, with user penetration increasing from 66.7 percent in 2023 to 74.7 percent by 2027.
Oil Updates — Crude rises more than $1 a barrel on tighter supply outlook
NEW YORK: Oil prices jumped more than $1 a barrel on Thursday, closing out the month higher on the prospect of OPEC+ staying the course on production cuts, ongoing attacks on Russia’s energy infrastructure and a falling US rig count tightening crude supplies, according to Reuters.
Brent crude futures for May settled at $87.48 a barrel, its highest level since Oct. 27, after gaining $1.39, or 1.6 percent. The more actively traded June contract settled at $87 a barrel, rising $1.58, with the May contract expiring on Thursday.
US West Texas Intermediate crude futures for May delivery settled at $83.17 a barrel, rising $1.82, or 2.2 percent.
On the week, Brent rose 2.4 percent and WTI gained about 3.2 percent. Both benchmarks finished higher for a third consecutive month.
In the prior session, oil prices had come under pressure from last week’s unexpected rise in US crude oil and gasoline inventories, driven by an increase in crude imports and sluggish gasoline demand, according to Energy Information Administration data.
However, the crude stock increase was smaller than the build projected by the American Petroleum Institute, and analysts noted the increase was lower than expected for the time of year.
“We ... expect US inventories to rise less than normal in reflection of a global oil market in a slight deficit,” SEB analyst Bjarne Schieldrop said. “This will likely hand support to the Brent crude oil price going forward.”
US refinery utilization rates, which rose 0.9 percentage point last week, also supported prices.
The oil and gas rig count, an early indicator of future output, also fell by three to 621 in the week to March 28, according to energy services firm Baker Hughes.
The US economy, meanwhile, grew faster than previously estimated in the fourth quarter. Gross domestic product increased at a 3.4 percent annualized rate from the previously reported 3.2 percent pace, the Commerce Department’s Bureau of Economic Analysis said.
“The strength in the stock market suggests strong forward earnings that are, in turn, hinting at a surprisingly strong US economy conducive toward better than expected energy product demand,” said Jim Ritterbusch of energy consultancy Ritterbusch and Associates.
Inflation data also affirmed the case for the US Federal Reserve to hold off on cutting its short-term interest rate target, a Fed governor said on Wednesday, but he did not rule out trimming rates later in the year.
“The market is converging on a June start to cuts for both the Fed and the European Central Bank,” JPMorgan analysts said in a note. Lower interest rates typically support oil demand.
Investors will watch for cues from a meeting next week of the Joint Monitoring Ministerial Committee of producer group the Organization of Petroleum Exporting Countries.
Increased geopolitical risk has raised expectations of possible supply disruption, but OPEC+ is unlikely to make any oil output policy changes until a full ministerial gathering in June.
Attacks by Ukraine on Russian energy infrastructure have also boosted the sentiment around global crude supplies tightening and helped to support oil prices, said Again Capital LLC partner John Kilduff.
“It’s a prime target, and they appear to have not heeded the ask by the Biden administration to not attack Russian energy infrastructure,” Kilduff said.
UAE, Saudi Arabia ranked as leading global entrepreneurial ecosystems
RIYADH: The UAE and Saudi Arabia have been ranked first and third respectively in the Global Entrepreneurship Monitor report for 2023-2024.
The report, which assesses the entrepreneurial ecosystems of countries worldwide, is highly regarded by international bodies such as the World Bank, International Monetary Fund and various UN organizations,
Saudi Arabia showed significant progress in its entrepreneurial environment, with its National Entrepreneurship Context Index score increasing from 5.0 in 2019 to 6.3 in both 2022 and 2023.
This reflected the country’s successful efforts to diversify its economy and foster a supportive climate for entrepreneurship, said the report. A notable highlight was increased female entrepreneurship, with eight women starting new businesses for every 10 men in 2023.
The country also has the highest proportion of adults who know an entrepreneur, perceive ease in starting a business, recognize good business opportunities, and believe they possess the necessary skills and experience to start a business.
However, despite high acknowledgment of opportunities and capabilities, there remains a considerable fear of failure, the report concluded.
Additionally, a significant percentage of Saudi entrepreneurs are expected to leverage digital technologies and focus on minimizing environmental impacts and maximizing social impacts, indicating a readiness for future challenges.
Meanwhile, the UAE set a record with its National Entrepreneurship Context Index score of 7.7, the highest in the report’s history.
The report also positioned the UAE as the best environment in the world for starting and conducting new business ventures, surpassing many advanced economies. It also ranked third globally in terms of physical infrastructure.
Significant strides have been made in entrepreneurship education within schools, emphasizing skills like creative thinking, problem solving, opportunity recognition and risk assessment. The country ranked among the top five out of 49 in this aspect.