In a step aimed at addressing the financial obligations accumulated by establishments that have ended their commercial activities and left the Saudi market, Asharq Al-Awsat learned that the General Authority for Social Insurance has allowed this category to benefit from a 100 percent exemption from insurance debts, in accordance with the approved controls, which paves the way for settling their financial conditions and ending the outstanding files, ensuring the stability of private sector businesses in the local market and addressing the stumbles of the departing establishments.
This step comes within a package of improvements that the Authority is working to implement to develop its services provided to employers and establishments, in response to the observations and suggestions it monitored during its direct meetings with officials and business owners, in cooperation with the Chambers of Commerce.
Taking into account economic conditions
This initiative carries an economic and organizational dimension that goes beyond reducing debts, as it aims to address financial and administrative backlogs left by establishments that have left the market, and facilitate the regular closure of their files.
The most important value of this step lies in building a balance between protecting the rights of insurance companies and subscribers on the one hand, and taking into account the economic conditions of establishments that have stopped operating on the other hand. It also enhances the concept of regulatory flexibility in the business market, so that accumulated obligations do not turn into a permanent obstacle to settling financial and administrative situations.
Enhancing market attractiveness
The initiative reflects a trend towards dealing with commercial default from a more flexible perspective, based on addressing accumulated obligations instead of keeping them a continuous burden on business owners, which supports confidence in regulatory procedures and enhances the attractiveness of the business environment in the Kingdom.
This step gains importance in light of the changing nature of the business sector, as new establishments enter the market annually, while other establishments end their activities for reasons related to competition, high costs, or changing market conditions.
Settlement of the insurance files of departing establishments would reduce the administrative and financial burdens on their owners, help them arrange their economic situations, and perhaps create conditions for them to return to commercial activity in the future, without old obligations remaining an obstacle to them, according to what the regulations allow.
According to private information, the General Authority for Social Insurance informed all companies and institutions of the improvements that have been implemented for business sector services, including debt relief, to enable establishments that have ended their activity to address their insurance obligations, and to facilitate the completion of the regulatory procedures associated with ending their activity, in a way that reduces the financial burdens on business owners whose establishments have stopped practicing commercial activity.
Developmental improvements
In a related context, the improvements included developing services for registering establishments, terminating their activity, and managing their owners, in addition to addressing recurring technical problems and raising the quality of digital services, which contributes to improving the experience of beneficiaries and accelerating the completion of transactions.
It also developed electronic payment options through the “Qawsi Business” application, allowing employers to pay amounts exceeding 30,000 riyals ($8,000) in multiple payments, in a step aimed at facilitating the fulfillment of financial obligations and improving the flexibility of payment processes.
The updates also included enhancing transparency in dealing with transactions, by clarifying the reasons for rejecting work injuries and subscribers’ transactions, and activating notifications for receiving applications, accepting them, returning them, or rejecting them through the “Aqsa Business” and “Tawakkalna” applications.
These improvements reflect Social Insurance’s orientation towards developing the digital services system, facilitating procedures for employers, and enhancing the efficiency of dealing with insurance obligations, in a way that supports the business environment and contributes to addressing the outstanding financial and administrative files of establishments.
The pound sterling rose to its highest levels since September 15, on Wednesday, supported by the decline of the US dollar following the wide victory of the Democratic Party in the midterm congressional elections, while investors await the Bank of England’s decision on monetary policy, scheduled to be issued on Thursday.
The pound rose by 0.63 percent against the dollar, reaching $1.3495 at 10:22 GMT, and also rose slightly against the euro to 83.43 pence, according to Reuters.
The pound benefited from the weakness of the dollar, after the Democrats were able to seize control of both chambers of the US Congress.
Focus on the British currency has increased since British Finance Minister John Healey announced the budget, which included cautious tax and spending plans aimed at supporting families affected by “global economic storms.”
Sterling also received support from expectations of the Bank of England raising interest rates, as financial market data indicate that traders are pricing in an increase in interest rates during Thursday’s meeting.
High interest rates usually enhance the value of the currency, but some analysts believe that a large part of the optimism about sterling has already been reflected in prices, which limits the chances of achieving further gains.
Goldman Sachs analysts wrote in a note that market expectations regarding the Bank of England raising interest rates are still high compared to their counterparts in the G10, while the pound’s valuation levels represent a clear challenge to the British currency.
Some economists polled by Reuters expect the central bank to seek to calm market bets on implementing three to four interest rate increases during 2027.
For their part, Bank of America Global Research analysts believe that raising interest rates accompanied by a monetary easing tone may put pressure on the pound, but they do not expect it to have a long-term negative impact, in light of the improvement in the fundamental factors supporting the economy.
The profits of Suncor Energy, the Canadian integrated oil and gas company, exceeded analysts’ expectations for third-quarter profits. High oil prices and strong refining margins helped offset the decline in production volumes and refining operations.
The Iran war, now in its ninth month, has disrupted global energy supplies, pushing crude oil prices higher. The average price of Brent crude oil reached $89.27 per barrel during the quarter, an increase of 31 percent compared to the same period of the previous year.
Integrated oil companies, such as Imperial Oil and Suncor, benefited from the global fuel market, which witnessed turmoil due to the war. The rise in oil prices contributed to enhancing profit margins in both the production and refining sectors.
Last week, Imperial Oil also exceeded analysts' expectations for its quarterly profits, supported by strong refining margins.
During the aforementioned quarter, Suncor recorded a decline in both primary production and refining volumes. However, higher oil prices helped revenues from oil sands production increase by 32 percent to C$9.32 billion (US$6.66 billion).
Revenues from refining operations also jumped by more than 65 percent to about 13.4 billion Canadian dollars, driven by the more than doubling of “standard refining margins,” which allowed refineries to achieve much greater profits from processing each barrel of crude oil.
The company's primary production - which is based in Calgary, Alberta - decreased by 2 percent, reaching 852,500 barrels per day, while the refining volume decreased slightly, reaching 487,700 barrels per day.
Suncor announced a quarterly dividend of 66 Canadian cents per share, payable on December 24, which represents a 10 percent increase compared to the previous quarter.
In October, Suncor agreed to sell its shares in three offshore oil assets in Canada to the Ithaca Company for 1.2 billion Canadian dollars. It also raised the value of the share buyback program from 500 million Canadian dollars to 750 million Canadian dollars per month, starting in October.
The company recorded an adjusted operating profit of 3.97 Canadian dollars per share for the quarter ended September 30, exceeding analysts' average estimate of 3.28 Canadian dollars per share, according to data compiled by the London Stock Exchange Group.
