Bankruptcy of large companies in the Kingdom
The declining rates of the economy of the Kingdom announced by the official authorities are increasing, witnessing more rapid breakdowns unprecedented in the history of the Kingdom of the largest companies.
The announced indicators of the economy of the Kingdom by these bodies, the state of collapse suffered by the economy of the world’s largest oil producer, the latest bankruptcy of large companies, and the decline in the budget deficit in the country.
Arqaam newspaper published what it called the financial results for the first half of 2019.
Major companies recorded heavy losses in addition to other declines in profits. Notable losers:
Safety, Fish, Tabuk Agricultural, Red Sea, Role, Pharmaceutical, Exports, Gazadco, BATIC, BCI, FIPCO, Kingdom, Real Estate, Global, Chubb Arabia, Allianz SF, Chemanol, Amana Insurance, Gulf Union, Investment, Markets Al Mazraa, Emaar, Gypsco, Saudi German Hospital, Nama Chemicals, Saudi Chemical, Catering, Anaam Holding, Al Ahlia, Solidarity Takaful, SABB Takaful, Arab Insurance, Union Insurance, Falcon Insurance, Malath Insurance, National, Borouge Insurance, Al Rajhi Takaful, SABB , Arabian Shield, Sabra Holdings, Alinma Tokyo, and many other major companies located in the Kingdom.
On August 24, press sources revealed that the number of bankruptcy cases in commercial courts, since the beginning of the current Hijri year, amounted to about 500 cases.
The sources said that the Riyadh commercial court accounted for 73.6 percent of the total of these cases, with 368 cases.
The sources pointed out that the commercial courts in Jeddah hear 75 cases of bankruptcy, while the Commercial Court in Dammam is 54 cases.
Saudi Arabia’s foreign trade surplus (oil and non-oil) fell 6.1 percent year-on-year in the first half of 2019.
According to data issued by the General Authority for Statistics, published on August 26, the trade balance surplus reached $ 67.1 billion, compared with surplus for the corresponding period of 2018, which amounted to about $ 71.4 billion.
The value of merchandise exports (oil and non-oil) fell 4.7 percent to $ 133.7 billion, while imports fell 3.1 percent to $ 66.7 billion.
As the Kingdom’s escalating economic crises continued, which caused significant losses for a number of companies, Saudi Basic Industries Corp. (SABIC) profit fell sharply in the second quarter of 2019, by 68.3 percent year-on-year to 2.12 billion riyals ($ 566 million). From 6.7 billion riyals ($ 1.79 billion) in the same period last year.
In late July, the company reported a 54.7 percent year-on-year decline in net profit in the first half of 2019 due to lower selling prices.
SABIC said in a statement that its net profit was 5.52 billion riyals in the first half of this year, compared with 12.2 billion riyals in the corresponding period of 2018.
Saudi Aramco, the world’s largest oil company, posted a 12% drop in profits in the first half of the fiscal year to $ 46.9 billion following a drop in global oil prices.
Saudi Arabia posted a budget deficit of SAR 33.52 billion ($ 8.9 billion) in the second quarter of 2019, while internal and external debt rose to 627 billion riyals ($ 167.3 billion).
On July 30, Riyadh announced a quarterly report on the performance of the state budget for the second quarter of the fiscal year 1440/1441 (2019), and reported that revenues in the second quarter of 2019 amounted to about 260.706 billion riyals, and expenses about 294.226 billion riyals, bringing the budget deficit during Second quarter about 33.52 billion riyals.
The energy sector recorded a sharp and unprecedented decline in profits, by 73.7%, due to the loss of Petro Rabigh by 109.7%, compared to the same period last year, where it incurred 51.6 million riyals ($ 13.7 million), compared to profits of 530.6 million riyals In the first half of last year.
