SAUDI GROK Daily News – Excerpts from International Media Reports
[Links to full articles were active on the date posted here]
Middle Class Slowly Disappearing in Kingdom [Aug 26]
“Saudi Arabia can boast of being among the few countries least affected by the global financial crisis. However, a large number of citizens have still become the worst victims of the price rises that came from the credit crunch. Prices of essential goods including food as well as rent have risen exorbitantly, putting the budgets of many middle class people in jeopardy. A situation has been created where the rich have become richer and the poor have become poorer, resulting in more difficult circumstances for those on low-incomes. Subsequently, those in the middle classes are slowly disappearing and many of them find a berth in the lower class of the poor and destitute. This phenomenon takes place despite a series of measures from the government to rein in prices and implement several welfare packages for those on low incomes, according to a report published by Al-Riyadh Arabic daily..” [Complete Report]
Saudi Cleric Told to Stop Unauthorized Edicts After His Call for Boycotting Female Vendors [Aug 26]
“Saudi Arabia’s most senior religious leader has ordered a conservative cleric to stop giving unauthorized edicts after his call for boycotting a supermarket chain that employs women as cashiers.. .. Grand Mufti Sheik Abdul-Aziz Al Sheik’s office said Thursday he ordered al-Ahmed to refrain from issuing edicts, or fatwas, without authorization. Saudi media say the fatwa forced the chain to reassign 11 women employees Wednesday. The chain could not be reached for comment. A recent royal decree limits the issuance of fatwas to a senior body of Saudi clerics..” [Complete Report]
Special Report – Can Saudi Arabia Fix Its Housing Time Bomb? [Aug 26]
“..Buying your first house can be fraught with anguish no matter where you live. But few countries present the same mix of financial and cultural problems as Saudi Arabia. The biggest hurdle: a next to non-existent mortgage market that seems designed to benefit existing property owners and well-off borrowers while shutting out middle class or poorer people. Much of the housing problem is rooted in the country’s fast-changing demography. Fuelled by a big rise in the number of foreign workers, the country’s population grew almost 20 percent to 27.14 million between 2004 and 2010, according to a recent census. The number of houses simply can’t keep up. In total, the country has a deficit of two million housing units, a figure that’s rising by some 150,000 a year, according to independent economist Saud Jleadan. Industry experts including private Saudi-based mortgage lender Real Estate Financing Co (Refco) and U.S. consultancy Clayton Holdings estimate that just 30% of Saudis now own their home. That’s down from more than half 20 years ago according to some estimates and a striking symbol of the uneven distribution of wealth in the world’s biggest oil exporter.. .. a report issued in late July, state-owned National Commercial Bank said that rapid population growth and the huge number of young Saudis, two-thirds of whom are under 30, are “exerting enormous pressure on the country’s infrastructure, while creating social and economic imbalances”. The housing challenge, says John Sfakianakis, chief economist at Banque Saudi Fransi, is “undeniable.”..” [Complete Report]
NCB Capital Tops Euromoney Research Poll [Aug 26]
‘NCB Capital, Saudi Arabia’s largest investment bank, has been voted best research house in three categories in Euromoney’s annual Middle East research survey for 2010. The bank achieved a total of 10 ranked positions in this year’s survey, the third highest amongst all research firms in the region. On the basis of top ranked positions, the firm achieved the second highest total in the region.. .. Euromoney’s annual Middle East Research survey polls global and regional institutional investors to rate the quality of sell side research covering the Middle Eastern equity and debt markets..” [Complete Report]
