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The Saudi central bank has extended a loan deferral program to help small businesses cope with the fallout of the coronavirus pandemic until the end of the first quarter next year.
The monetary authority said in a statement Sunday that the plan has impacted over 77 billion riyals ($20.5 billion) of loans and the extension was taken to help support economic growth. Announced in March as one of the kingdom’s first responses to the economic costs of the health emergency, the measures have already been prolonged and were due to expire in December.
The central bank has been at the forefront of the kingdom’s efforts to protect the economy at a time when the government is set to cut spending in order to stop the budget deficit from widening. Last week, the Saudi central bank’s mandate was broadened to formally include promoting economic growth, partly in recognition of the role it was already playing.
In the neighboring United Arab Emirates, the central bank extended similar stimulus measures through June 2021.
Dubai cut fuel surcharge for electricity and water as part of efforts to provide the services at “globally competitive prices.”
Fuel surcharge for electricity will be 5 fils for kilowatt hour instead of 6.5 fils, according to a statement on Dubai’s Media Office website. Surcharge for water will be 0.4 fils for imperial gallon instead of 0.6 fils.
“The savings achieved in fuel consumption as a result of the increase in solar energy production will be passed to customers,” according to the statement. The reduction will be applied on electricity and water bills from Dec. 1.
The shares closed 5.5% higher in Riyadh, taking the gain for the year to 58%. The benchmark Tadawul index rose 0.2%.
The non-binding memorandum of understanding with CureVac includes the possibility of extending the supply and distribution rights in the United Arab Emirates, Kuwait, Bahrain, and Oman, the company said. Saudi Pharmaceutical said it’ll determine the financial impact of the deal after obtaining approvals and signing the final deal.
CureVac’s coronavirus vaccine showed a good immune response in early trials and its chief executive officer said advanced clinical trials are on track to start by year-end. The European Union has agreed to pay $11.84 per dose for an initial supply of 225 million doses of CureVac’s vaccine candidate, Reuters reported earlier this month.
Major Gulf stock markets ended mixed on Sunday with Saudi Arabian shares extending gains for a sixth consecutive day, while Dubai fell after five days of rises.
All major Gulf stocks registered gains in the week to Thursday, riding on a rally fuelled by optimism around COVID-19 vaccine developments.
Saudi Arabia’s main index was up 0.2% as Dr. Sulaiman Al-Habib Medical Services Group surged 8.7%, its sharpest intra-day rise since July and registering third straight gains.
The healthcare firm will be included in the MSCI Global Standard Index, as of Nov. 30, the MSCI semi-annual index review shows.
Saudi Electricity advanced 3% in its fifth daily rise in six trading days.
Moody’s on Wednesday upgraded the utility company’s rating to A1, citing increased government support. The company recently signed an agreement with the government to convert state liabilities worth 167.92 billion riyals ($45 billion) into a subordinated perpetual financial instrument.
Elsewhere, Saudi Pharmaceutical Industries & Medical Appliances Corporation jumped 5.5%. The company said it signed a memorandum of understanding with German biopharmaceutical company Curevac to supply and distribute a COVID-19 vaccine.
Dubai’s index fell 0.8%, ending a winning streak of five consecutive sessions.
Emirates NBD Bank dropped 1.9%, while Emaar Malls declined 3.1%.
Abu Dhabi’s index was up 0.3% with Emirates Telecommunications Group rising 1.3% and International Holdings Company gaining 0.7%
The Qatari index edged down 0.1% with most of its constituents closing in the red. Qatar Gas Transport led the losers, declining 2.1%.
Losses were partially offset by Industries Qatar which rose 2%.
Most Middle East stock markets advanced, taking their cue from rising crude oil prices and gains elsewhere in emerging markets last week.
Indexes in Saudi Arabia, Abu Dhabi, Bahrain and Oman climbed as much as 0.3%, while those in Dubai, Kuwait and Qatar slipped. The Tadawul All Share Index in Riyadh rose for the sixth consecutive session to trade at the highest level since July 2019.
The prospect of the formal start to President-elect Joe Biden’s transition to power and optimism that the roll-out of vaccines will speed up the economic recovery helped emerging-market stocks and currencies to post their fourth week of gains through Friday. Oil also rallied ahead of an OPEC+ ministerial gathering this week.
Sunday’s gains defied increased tensions in the region following the killing of Iran’s top nuclear scientist on Friday. Iranian President Hassan Rouhani accused Israel of what he called an “act of terrorism,” saying his country will respond “when the time is right.”
MIDDLE EASTERN MARKETS:
Saudi Pharmaceutical Industries and Medical Appliances Corp. rose as much as 6.3% after it said it signed a non-binding memorandum of understanding with German biotech company CureVac to provide a Covid-19 vaccine in Saudi Arabia
Saudi Telecom Co., the biggest mobile operator in the Middle East, said its chief executive officer resigned after just over two years in the role
STC shares gain 0.2% as of 10:07 a.m. in Riyadh
Kuwait’s Boubyan Bank obtains approval to issue as much as $500 million or its equivalent in other currencies in sukuks
Israel’s Delek Drilling said on Sunday it was looking to spin off most of its assets into a new company that will be listed on the London Stock Exchange.
The company, a unit of conglomerate Delek Group, said in a regulatory filing in Tel Aviv that it had filed a request with the Financial Conduct Authority to list the new company on the main market in London.
Delek Drilling said it would continue to hold a stake in the Israeli natural gas field Tamar, while other assets, which include shares in the Leviathan and Aphrodite fields and a partial ownership of a pipeline to Egypt, would be transferred to the new company.
As OPEC+ ministers gather virtually this week, the city that traditionally hosts their meetings will be locked down. Vienna’s Christmas markets will be closed, the famous Ringstrasse boulevard silent. For oil ministers, the scene should urge caution.
But while the Austrian capital provides a dramatic example of how the second wave of the pandemic is shutting down economies in Europe and the U.S., the global picture is more nuanced.
In Asia, the situation is almost the opposite to that of Vienna. The streets in India were full during the recent celebration of Diwali; China’s Golden Week holiday saw millions take cars, trains and even planes to visit relatives across the country.
The east-west divide is an added conundrum for OPEC+, which on Nov. 30-Dec. 1 needs to decide whether to delay a production increase slated for January -- and if so, for how long. And there’s another crucial divide in the global oil market: while gasoline and diesel demand have recovered to about 90% of their normal level, consumption of jet fuel languishes at about 50%.
The demand for ready-to-move-in villas and townhouses in Dubai surged to an all-time high in October. A total of 665 secondary or ready-to-move-in villas/townhouses were transferred during the month, 7.2 percent higher than in September 2020 and more than 500 percent higher than in May 2020, according to data from the Dubai Land Department (DLD).
In October 2020, the DLD recorded a total of 3,395 sales transactions worth AED 6.93 billion ($1.89 billion), with 37.2 percent in the off-plan segment and 62.8 percent in the secondary segment. This brings the year-to-date total to 27,815 sales transactions worth AED 57.43 billion, according to Mo’asher, Dubai’s official sales price index developed by DLD and Property Finder.
Latifa Ibrahim Ahmed, Director of the Real Estate Studies & Research Department at DLD, said, "Among the most important data that can be obtained this month is the emergence of strong signs of recovery in the market and its return to normal paths across the various segments of real-estate units, especially through the demand for luxury units and the registration of sustainable growth month after month. Overall, this means that the market will enter the new year strongly, especially if we take into account the growing momentum of preparations for Expo Dubai.”
Dubai's overall index has remained stable at 1.092. The Dubai apartment and villa/townhouse index remained steady as well due to more affordable units coming into the ready market.
Major Gulf stock markets were steady in early Sunday trading, having gained last week on optimism about COVID-19 vaccines.
Saudi Arabia’s index was up 0.3% as Al Rajhi Bank gained 0.3% and Saudi Electricity added 2.1% in its fifth daily rise in six trading days.
Moody’s on Wednesday upgraded the utility company’s rating to A1, citing increased government support. The company recently signed an agreement with the government to convert state liabilities worth 167.92 billion riyals ($45 billion) into a subordinated perpetual financial instrument
Elsewhere, Saudi Pharmaceutical Industries & Medical Appliances Corporation jumped 5.2%. The company said it signed a memorandum of understanding with German biopharmaceutical company Curevac to supply and distribute a COVID-19 vaccine.
Abu Dhabi’s index was up 0.4% with Emirates Telecom gaining 0.9% and Aldar Properties rising 1.6%.
Dubai’s index gained 0.2%. Dubai Investments rose 1.6% and Emaar Properties edged up 0.3%.
The Qatari index was down 0.5% as Industries Qatar fell 2.5% and Qatar Islamic Bank lost 0.7%.
