May 8, 2016 21 Economy

Briefs

Saudi Arabia plans stock market reforms

Saudi Arabia announced reforms to its stock market that could attract billions of dollars of foreign money and smooth sales of state assets as the kingdom grapples with dam- age to its finances caused by low oil prices. Reforms announced suggest au- thorities are courting foreign money more aggressively. “This is a very good piece of news and supportive of the stock market in the medium to long term,” said Sebastien Henin, head of asset man- agement at Abu Dhabi’s The National Investor. Each foreign institutional inves- tor will be allowed to directly own a stake of just less than 10% of a single listed company, up from a previous ceiling of 5%, the Capital Market Au- thority (CMA) announced. All for- eign investors combined will still be limited to owning 49% of any single firm. (Reuters)

Iran and South Korea to triple trade

Iran and South Korea plan to triple their annual trade volume, Iranian President Hassan Rohani announced after meeting his South Korean counterpart Park Geun-hye. “The two sides decided to increase by three times the current trade vol- ume of around $6 billion to $18 bil- lion,” Rohani said in a televised news conference. “We also spoke about tourism, direct flights between Seoul and Tehran and Korean investment in Iranian tourism infrastructure, in- cluding building hotels.” Park, who is accompanied by sev- eral ministers and a 230-person busi- ness delegation, was also received by Iranian Supreme Leader Ayatol- lah Ali Khamenei, who said Tehran and Seoul would benefit from “con- tinuous and stable relations”, free Muslim pilgrims walk outside the Grand Mosque in the holy city of , Saudi Arabia. The SBG was entrusted with construction work from US influence. in the mosque. The two countries pledged to de- velop energy-sector ties. Tehran hopes in May to increase its oil ex- ports to Seoul to 400,000 barrels per Once powerful Saudi Binladin Group day (bpd) from a current 100,000 bpd, Oil Minister Bijan Zanganeh said. sacks thousands (Agence France-Presse)

Mohammed Alkhereiji ing or waiting for back pay, plus a rights of employees, you know, are company’s woes. Libya outlines plans two-month compensation pack- protected,” he added. With falling oil prices forcing age. SBG has become victim to acci- the government to curb spend- to restore oil London “The size of our work force is al- dents and the shrinking local con- ing, fewer new jobs were commis- ways appropriate to the nature and struction market, particularly in sioned and a number of construc- output he Saudi Binladin Group size of projects and the time frame previously lucrative government tion firms were faced with delayed (SBG), a once-powerful they are to be carried out by the projects. payments, forcing the head of the Libya’s National Oil Corporation global construction con- group,” said Yaseen Alattas, a Saudi Saudi Chamber of Commerce Ab- has ambitious plans to restore out- glomerate, has sacked Binladin Group spokesman. Industry insiders also dulrahman al-Zamil to write a let- put to pre-2011 levels after years of 77,000 of its foreign work Alattas said most of the jobs say that SBG is ter to King Salman bin Abdulaziz Al violence and disruption, officials Tforce, leading to protests by for- eliminated were “on specified-term Saud asking him to intervene. said. allegedly $30 billion in mer employees and the torching contracts”, adding that the group debt. “If the delay in payments contin- Oil output is less than one-quar- of seven of the company’s buses in would continue to implement its ues, these companies will be at risk ter of the 1.6 million barrels per day Mecca. obligations towards everyone, in- of default, or go completely out of (bpd) Libya pumped before Muam- Such protests are rare in the king- cluding employees terminated. The Saudi government’s once business,” the letter stated. mar Qaddafi fell in 2011. The Nation- dom, where demonstrations are SBG is estimated to owe $660 preferred builder, SBG saw its for- Deputy Crown Prince Moham- al Oil Corporation (NOC) in Tripoli generally not tolerated by authori- million in unpaid wages. tunes change during the 2015 haj, med bin Salman bin Abdulaziz, hopes to ramp production up swiftly ties. The company belongs to the when 107 people were killed and who is spearheading the kingdom’s with the backing of a new unity gov- A Saudi daily newspaper report- family of the late al-Qaeda leader hundreds more injured after an un- economic diversification drive, ernment. ed that SBG fired tens of thousands . The family dis- secured crane belonging to the firm told Bloomberg News that all can- Full recovery could take years be- of foreign employees. The com- owned the terrorist leader in 1994 crashed in Mecca’s Grand Mosque. celled government projects were cause of shutdowns by disgruntled pany also handed them exit visas. and his Saudi citizenship was re- The tragedy, which sparked an not under contractual agreements workers, political rivalry and attacks However, workers refused to leave voked. outcry locally and abroad, resulted and were cancelled to avert an eco- by Islamic State (ISIS) militants. An the kingdom since they are owed as The deteriorating situation has in an investigation by authorities, nomic catastrophe. He said a num- NOC official in Tripoli said at least much as four months back pay. prompted Saudi Labour Minister which found that SBG “was in part ber of construction companies had 200,000 bpd of capacity had been Mufrej al-Haqbani to stress that responsible” for the accident. been paid and that the rest was on damaged in attacks on oil fields in The Saudi Binladin workers for the embattled firm will This led to the government sus- the way. the western Sirte basin, Libya’s most Group (SBG) has get their wages. “I think, God will- pending all new contracts associ- SBG has worked on numerous prolific. sacked 77,000 of its ing, it will be solved and the com- ated with the firm. Existing con- high-profile projects within the The first phase of a three-stage pany promised to solve all issues tracts were put under review. This kingdom, including the Grand recovery plan can be implement- foreign work force. related to wages,” he said on CNBC. caused a steep drop in the firm’s Mosque in Mecca, the holiest site in ed within three months, a second “Workers have three choices: stock value on the Tadawul stock Islam; the huge Al-Faisaliah tower NOC official in Tripoli said, allow- The firm will shed almost half Stay and agree to stay and help exchange. in ; and King Abdulaziz In- ing fields such as El Sharara and El- of its overall work force, including company. His second choice is to Industry insiders also say that ternational Airport in . Be- ephant, with a combined capacity of a large number of Saudi nationals. transfer his contract to another em- SBG is allegedly $30 billion in fore the crane accident in Mecca, around 430,000 bpd, to come back According to local reports, SBG has ployer and third to exit the coun- debt, which, when factored with the firm was tapped for the lucra- on stream. given approximately 17,000 Saudi try and assign someone to follow the current state of the kingdom’s tive causeway project between (Reuters) staff members the option of resign- his rights at that company. So the economy, is likely to amplify the Egypt and Saudi Arabia.