Saudi Arab

Collapse in Economy and Bankruptcy of Dozens of Companies in Saudi Arabia

Commercial bankruptcy cases in Saudi Arabia have accelerated In the last two years, Al-Eqtisadiah newspaper reported. The living conditions of Saudis, who had enjoyed relatively good economic conditions in the past, have deteriorated due to the country’s floundering policies and the ongoing war in Yemen since March 2015.

According to legal statistics, the Commercial Court in Riyadh received 73.6 percent of the total, with 368 cases, followed by the Jeddah Commercial Court with 75 cases, followed by the General Court in Dammam with 54 cases.

In April, the Saudi Bankruptcy Committee revealed that dozens of companies filed for bankruptcy because of the economic crisis that hit the Saudi market.

According to the Bankruptcy Committee at the time, 33 companies had asked to start liquidation and bankruptcy proceedings. About 14 of these are contracting firms, 42 percent of the number of bankrupt companies.

Saudi Arabia’s balance-of-trade surplus

Saudi Arabia’s foreign trade surplus (oil and non-oil) recorded a decline with 6.1 percent year-on-year in the first half of 2019.

According to data released by the General Authority for Statistics in Saudi Arabia, published on August 26, the trade balance surplus in the Kingdom amounted to 67.1 billion dollars, compared with surplus for the corresponding period of 2018, which amounted to about 71.4 billion dollars.

Saudi Arabia recorded a deficit in the state budget in the second quarter of this year (2019), amounting to 33.52 billion Saudi riyals (8.9 billion dollars), while domestic and foreign debt rose to 627 billion riyals ($ 167.3 billion).

As a result of the crisis, the results of financial data published in April showed that dozens of Saudi companies suffered huge losses, including Nadec Company, which increased its losses by five times on an annual basis.

According to a report by the Saudi daily Al-Eqtisadiah, more than 50 listed companies reported losses in 2018, losses of 13 companies increased, pointing out that 24 other companies recorded losses compared to profits in 2017, while the remaining 13 companies reduced their losses compared to the same year.

Economic expert Amer al-Nahari said that the Saudi Vision 2030, announced by Saudi Crown Prince Mohammed bin Salman, was “an adventure within the framework of the Kingdom’s public relations tactics,” pointing out that it is no less dangerous than his previous adventure in Yemen.

Al-Nahari said, in an interview with Alkhaleej Online, that the statistics saying the Kingdom has 716 billion barrels oil reserves is legendary,

The reforms announced by Bin Salman and the creation of a $ 2 trillion global investment fund, as well as the sale of shares in state oil company Saudi Aramco, will be overthrown before the 2030 vision deadline.

-bankruptcy cases in Saudi Arabia

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