The UN appointed Special Rapporteur on extreme poverty in the Gulf has concluded his mission on 19th January. In his report Dr. Mohamed Ramady highlights that poverty encompasses non-financial targets that encompasses women’s right to work and move freely, inhibiting factors that lead to family poverty. It is meaningless to adopt an absolute line given a large variance in GCC GDP per capita, ranging from around $ 25,000 in Saudi Arabia to $ 95,000 in Qatar. National poverty line figures accordingly vary from $ 1,300 per month to $ 5,000 levels. Cash payment handouts to reduce subsidies to balance national budgets are short-term measures. The key to poverty eradication is education, access to work and removal of social restrictions. To varying degrees, all the Gulf countries have given emphasis to ensuring more female work and civil and political participation. The UN Report also highlighted an uneven corporate social responsibility to carry out effective training and offer more opportunities for female workers and handicapped employees.
According to a recent Fitch Ratings report, major Saudi banks continue to report liquidity coverage ratios (LCRs) above 100% despite a 30% outflow of government-related deposits. The banks’ ability to withstand such a shock demonstrates that their liquidity positions are resilient. The Saudi Arabian Monetary Agency (SAMA) released $5.3 billion (20 billion Saudi riyals) of government-related deposits into the banking sector yesterday. According to Fitch Ratings, Saudi banks will continue to adopt careful liquidity management strategies in order to protect their LCRs from falling below current levels.