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JEDDAH: Does increasing the cost of a traffic fine for paying late constitute usury? This question has been raised and debated by Saudi officials, pitting the grand mufti against a high-ranking Shoura councilman.

The debate comes following a recent decision to nearly double the cost of a traffic ticket if the violator doesnt pay the fine by a certain date. The move spurred a fatwa by Grand Mufti Sheikh Abdul Aziz Al-Asheikh who said increasing the cost of a ticket over time is a form of riba (usury), which is prohibited in Islam.

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As the Gulf Cooperation Councils biggest economy closes the books on 2009, it may well be remembered as a year of caution and mixed fortunes. Economic growth was positive and inflation fell, but lower oil prices caused the state budget to drift into deficit territory. Nevertheless, with the government clearly committed to supporting the economy through stimulatory spending, higher growth is already expected in 2010.

Saudi Arabias GDP grew by 0.15% in 2009, while inflation fell drastically to 4.4% from 9.9% in 2008, according to preliminary figures released by the Ministry of Finance.

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JEDDAH – Afdal Al-Manazel Trading Company Limited, an affiliate of Strata Investment Group and the exclusive franchisee of Better Homes, the region leading property services company which operates in the Middle East, opened its headquarters in Jeddah on Wednesday in the light of the increasing demand on properties in the Kingdom.

One industry study said earlier that in value terms, the housing sector comprises 75 percent of all real estate activity in the Kingdom. And SR75 billion per annum will be required to meet annual housing demand in the Kingdom through 2020.

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JEDDAH: Jadwa Investment has registered a strong 2009 performance with net profits of SR35.6 million.

The companys stakeholders entitlements rose 56 percent to SR1.158 billion, compared to SR742 million in 2008, with the price of each share reaching SR20.4. The board of directors recommended a distribution of five percent of profits.

Despite the difficult economic conditions in the markets over the past two years, Jadwa succeeded in making a profit for the third year in a row and experienced strong growth, taking its financial position to SR1.158 billion, said Jadwa Chairman Prince Faisal bin Salman.

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MAKKAH: Makkah residents are complaining about the delay in the completion of the 12-year-ld King Fahd Housing Project in the city.

According to a report in Fridays Al-Madinah newspaper, the SR1.5-billion project to provide housing for 1,600 families completed most of its construction work was completed three years ago, but appears to have come to a standstill ever since.

Although the contract for the final works, was reassigned to another contractor three years ago, no work has been done so far, Chairman of the Real Estate Committee in the Makkah Chamber of Commerce and Industry Mansour Abu Rayash told the newspaper. The housing units now look like abandoned houses.

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JEDDAH – The Saudi Arabian insurance industry has emerged as one of the fastest growing insurance industries across the world. While the global economic crisis has severely hit other industrial sectors, the insurance industry posts 25-30 percent annual growth rate on the back of compulsory insurance lines.

According to our new research report “Saudi Arabia Insurance Market to 2012″, protection & savings and health insurance are the fastest growing insurance lines in the Kingdom, with health insurance accounting for around 44 percent of the overall insurance market as of the end of 2008.

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JEDDAH: The Saudi stock index ended higher for a third day in four on Wednesday. The Tadawul All-Share Index (TASI) closed 25.12 points higher at 6,281.60, its highest close since Jan. 25.

Shares in Al-Rajhi Bank climbed by 0.34 percent to SR74.25. The other gainers were Bank AlJazira, up 1.10 percent, Banque Saudi Fransi, 0.95 percent, Bank Albilad, 0.82 percent, SABB, 0.41 percent and Samba Financial Group, 0.45 percent.

Saudi Basic Industries Corp. (SABIC) shares surged 1.16 percent to SR87.50.

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JEDDAH – Saudi Arabias foreign assets surged by more than SR67.14 billion in December last year at SR1,570.65 billion compared to SR1,503.51 billion in November, the Saudi Arabian Monetary Agency (SAMA) said in its December bulletin released on Wednesday.

In January 2009, assets stood at SR1,681.3 billion. Assets hit record high of SR1,709.9 billion at the end of 2008.

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RIYADH: Fatima is 70 years old and the widow of an ex-military officer who passed away three years ago.

She lives alone at home, and although she says she is in good health considering her age, she still needs care.

“ I receive SR 3,400 a month, which is my late husband’s pension. I am expected to use it to pay my bills, the maid (SR1,500), my driver (SR1,700) as well as for essential modifications around the house that I need due to my age. You do the math and tell me how I can survive.”

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RIYADH – Fahhad Al-Hamad, Chairman of the Shoura Council’s Committee for Management, Human Resources and Petitions, assigned to examine proposals for unemployment benefit, has said that the study for the move requires the assistance of specialists and lamented the lack of a research and study center at the Council.
The Council previously backed the proposal brought by Shoura member Salem Al-Mari two years ago for monthly unemployment benefit of SR1,000 until such a time as work is found.
According to Al-Hamad, his committee might cancel the proposal – which was supported by 105 members, with 23 voting against – or even scrap it, all depending on further study.
“That study could take a long time,” he said, without wishing to set a deadline. “We really need to involve specialist economists, university experts and experienced organizations since council doesn’t have its own center for study and research.”
Both supporting Shoura members and Council opposition to the move have concerns.
Supporter Saeed Al-Sheikh wondered who would pay the unemployment benefits. “Will the money come from the State, the human resources fund or the Credit Bank?” Al-Sheikh asked.
Yahya Al-Samaani and Abdullah Al-Dossari have asked for a regulatory period of time to be set for benefit after which the recipient is ineligible.
Saad Mareq, who voted against the move, said the real problem was “not in who pays the unemployed, but instead in how to create jobs”, while Zain Al-Abedeen described unemployment in Saudi Arabia as “unemployment by choice”. “Many unemployed people refuse to take certain types of jobs,” Al-Abedeen said.
Another opposer to unemployment benefit, Abdulrahman Al-Yami, described the whole proposal as “skipping over the main problem.”
“There are still job positions occupied by non-Saudis,” Al-Yami said. – Okaz/SG