Saudi Arabia Lifts Lockdown, Cautiously Resumes Economic Activity

Business

June 21st, 10:59am

Jeddah- Saeed al-Abyad

General view of Riyadh, Saudi Arabia (Reuters)

After over three months of total and partial COVID-19 lockdown, Saudi Arabia has resumed all economic activities on Sunday according to the royal approval to return to normal life. The resumption of the activities will reestablish equilibrium in business and trade sectors after their activities have been interrupted during the coronavirus measures, while tourism, construction, food, and restaurant industries will try to compensate for their losses of the past period. Economic experts told Asharq Al-Awsat that after the resumption of all activities, businesses will develop new mechanisms that enable them to increase profits before the end of the fiscal year, depending on promotions and discounts to sell their products. The Kingdom's supervisory and health authorities stressed the need to adhere to all precautionary measures, urging citizens to maintain social distancing and follow instructions inside business premises. An official source at the Interior Ministry announced that resumption of activities was possible provided that maximum precautions were followed and as long as health measures were fulfilled. Following the reports of the health authorities regarding measures taken in light of the coronavirus pandemic, the nationwide curfew was lifted across the Kingdom from Sunday, June 21 at 6 a.m. All commercial and economic activities were allowed to return in all Saudi cities and regions, though individuals and companies should take into account preventive protocols requiring everyone to commit to social distancing, wear masks, and ban gatherings of more than 50 people, according to the official. He indicated that the measures will be periodically assessed and reviewed by the Ministry of Health. However, he asserted that international flights will remain suspended, as well as all travel activities through sea and land entry-exit points, until further notice. Economists believe that the first days will witness an exceptional dynamic return for economic activities, with an increased volume of spending. They believe that this is linked to the availability of liquidity with individuals and the recovery of oil markets. Head of the Shura Finance Committee Saleh al-Khelaiwi, speaking to Asharq Al-Awsat, highlighted the importance of public awareness to ensure that the number of cases would not increase again. He called upon citizens to cooperate with the security and health authorities to limit the spread of the coronavirus. Khelaiwi said the total resumption of activities would have a significant impact on all sectors, noting that businesses that saw no economic growth in the past period, would diversify their promotions. He pointed out that the purchasing power would decrease gradually over time and things would return to normal before the pandemic. Losses incurred by many sectors would be compensated for with an expected increase in spending, according to Khelaiwi, who explained that people have saved money in the past period. He added that many projects and pre-coronavirus plans that were suspended during the lockdown would be executed. The Shura member also pointed out to oil markets gradual recovery, which indicated return to normalcy to people. The Saudi economy is strong despite the international crises, and can remain stable even in the worst cases such as when oil prices dropped to $7.5 per barrel, according to Khelaiwi. Meanwhile, Mohamed al-Mojil, Vice-Chairman of the Tourism Committee at the Chamber of Commerce and Industry in Riyadh believes that the resumption of economic activities would lead to growth among sectors and correct the financial tracks of many companies. Mojil, who is also a member of the Riyadh Center for Small and Medium Business Development, indicated that the first week would record high activity and large circulation, and financial operations would be many compared to the previous months. The Vice-Chairman expects tourism to witness remarkable growth and a huge demand for travel and transportation between Saudi cities for recreation and tourism. He says hotel occupancy in southern regions may reach 80 percent. However, Mojil stresses the need to maintain precautionary measures, urging concerned authorities to ensure the application of all regulations which will guarantee a resumption of normal life. All commercial and economic establishments must make sure their employees are equipped to implement the health precautions, concluded Mojil.

from Asharq AL-awsat https://english.aawsat.com/home/article/2346256/saudi-arabia-lifts-lockdown-cautiously-resumes-economic-activity