Oil prices end mixed, despite big U.S. crude stock drawdown | Reuters
Oil prices were little changed on Wednesday, despite a massive drawdown in U.S. crude inventories, as ongoing concerns about the coronavirus pandemic tempered buying interest.
U.S. crude oil stocks dropped by nearly 10 million barrels last week to their lowest levels since March, surprising the market, which was looking for a modest increase in stocks. [EIA/S]
“The market was led up by a significant draw in crude oil as the refining industry continues to turn the crude oil surplus into refined products,” said Andrew Lipow, president Lipow Oil Associates in Houston.
U.S. West Texas Intermediate (WTI) crude futures settled at $52.85 a barrel, rising 24 cents, while global benchmark Brent crude futures fell 10cents to end at $55.81 a barrel.
Also helping oil was the U.S. Federal Reserve’s decision to stick to its dovish tone and leave its key overnight interest rate near zero to maintain monetary support until there is a stronger rebound from the pandemic-triggered recession.
Wednesday 27 January 2021
#SaudiArabia Aims to Become Next Germany of Renewable Energy - Bloomberg
Saudi Arabia Aims to Become Next Germany of Renewable Energy - Bloomberg
Saudi Arabia wants to emulate Germany’s success with renewable energy and be a pioneer in hydrogen production, as the world’s biggest exporter of oil seeks to diversify its economy.
“We will be another Germany when it comes to renewables,” Energy Minister Prince Abdulaziz bin Salman said Wednesday on a panel at the Future Investment Initiative conference in Riyadh. “We will be pioneering.”
The kingdom is working with many countries on green and blue hydrogen projects and those to capture carbon emissions, he said.
The green version of the fuel, which produces only water vapor when burned, is made with renewable energy, typically solar and wind power. The blue type is produced from natural gas, with the greenhouse gas emissions being captured so they can’t escape into the atmosphere.
While hydrogen is seen as crucial for the switch from oil and gas to cleaner fuels, the technology to make it is still comparatively expensive.
Saudi Arabia wants to emulate Germany’s success with renewable energy and be a pioneer in hydrogen production, as the world’s biggest exporter of oil seeks to diversify its economy.
“We will be another Germany when it comes to renewables,” Energy Minister Prince Abdulaziz bin Salman said Wednesday on a panel at the Future Investment Initiative conference in Riyadh. “We will be pioneering.”
The kingdom is working with many countries on green and blue hydrogen projects and those to capture carbon emissions, he said.
The green version of the fuel, which produces only water vapor when burned, is made with renewable energy, typically solar and wind power. The blue type is produced from natural gas, with the greenhouse gas emissions being captured so they can’t escape into the atmosphere.
While hydrogen is seen as crucial for the switch from oil and gas to cleaner fuels, the technology to make it is still comparatively expensive.
Stable outlook for GCC banks; but profits under pressure again: Fitch | ZAWYA MENA Edition
Stable outlook for GCC banks; but profits under pressure again: Fitch | ZAWYA MENA Edition
Fitch Ratings expects to see positive real GDP growth in most GCC countries which should bring revenue opportunities for the region’s beleaguered banking sector currently reeling from the twin shocks of low oil prices and COVID-19 related economic slowdown.
“Overall, we have a stable outlook on the banking sector despite the challenging environment,” said Raymond Ramsdale, Head of Middle East Banks & Islamic Banking at a Fitch webinar titled “2021 Outlook: ME Islamic & Conventional Banks Wading Through the Coronavirus and Low Oil Prices” on Wednesday.
The ratings agency expects loan growth in the GCC to be soft, averaging between 2 and 3 percent, driven by a mix of government and government-related entities (GRE’s) and non-oil sector. However, for banks in Saudi Arabia, the average loan growth could be about 7 percent, higher than the Middle East average, on the back of growth in retail mortgages.
Banks’ profitability, which last year was impacted by lower interest rates, higher impairment charges and lower business volumes will continue to be under pressure in 2021. “In fact, loan impairment charges may be even higher this year as we expect to see loan impairment charges over gross loans to average between 1-1.5 percent; two or three times what they have historically been,” said Ramsdale.
Fitch Ratings expects to see positive real GDP growth in most GCC countries which should bring revenue opportunities for the region’s beleaguered banking sector currently reeling from the twin shocks of low oil prices and COVID-19 related economic slowdown.
“Overall, we have a stable outlook on the banking sector despite the challenging environment,” said Raymond Ramsdale, Head of Middle East Banks & Islamic Banking at a Fitch webinar titled “2021 Outlook: ME Islamic & Conventional Banks Wading Through the Coronavirus and Low Oil Prices” on Wednesday.
The ratings agency expects loan growth in the GCC to be soft, averaging between 2 and 3 percent, driven by a mix of government and government-related entities (GRE’s) and non-oil sector. However, for banks in Saudi Arabia, the average loan growth could be about 7 percent, higher than the Middle East average, on the back of growth in retail mortgages.
Banks’ profitability, which last year was impacted by lower interest rates, higher impairment charges and lower business volumes will continue to be under pressure in 2021. “In fact, loan impairment charges may be even higher this year as we expect to see loan impairment charges over gross loans to average between 1-1.5 percent; two or three times what they have historically been,” said Ramsdale.
MIDEAST STOCKS- #UAE markets strengthen, #SaudiArabia edges down | Nasdaq
MIDEAST STOCKS-UAE markets strengthen, Saudi Arabia edges down | Nasdaq
Markets in the United Arab Emirates (UAE) finished higher on Wednesday, with Abu Dhabi index .ADI leading the advancements, buoyed by gains in the country's largest lender First Abu Dhabi Bank FAB.AD.
The Abu Dhabi benchmark closed 1.4% higher, bouncing back from losses in the previous session.
FAB was the best performer on the Abu Dhabi index, putting on 2.5%, while real estate firm Aldar Properties ALDAR.AD added 3.5%.
The bank on Tuesday after-market hours said its underlying operating performance is expected to improve in 2021, driven mainly by a healthy pipeline of business from government and state-linked companies, and by its latest acquisition in Egypt.
The lender posted a 16% drop in 2020 net profit on higher impairment charges, but that came in better than analysts' average forecast of 9.36 billion dirhams, according to Refinitiv data.
Dubai's main share index .DFMGI gained about 1.1%, with its biggest bank Emirates NBD ENBD.DUadding 2.6% as the lender posted a better-than-expected annual net profit.
Sharia-compliant lender Dubai Islamic Bank DISB.DU tacked on 2%.
Saudi Arabia's benchmark index .TASI, however, edged down 0.1%, dragged by Samba Financial Group 1090.SE, which fell 0.8% and was the worst performer on the index.
Saudi Arabia raised $5 billion in a dual-tranche bond sale with tenors of 12 and 40 years, a document showed, as it seeks to plug a large fiscal deficit.
The world's top oil exporter has taken a severe blow from the pandemic, which, along with a price war between Saudi Arabia and Russia last year, sent crude prices tumbling.
In Qatar, the index .QSI eked out a narrow 0.1% gain, breaking a four-session losing run.
Qatar Industries IQCD.QA was the best performer, adding 0.8%, while Qatar National Bank QNBK.QA, the Gulf's biggest lender by assets, rose 0.6%.
The index's gains, however, were capped by a 1.8% decline in Qatar International Islamic Bank QIIB.QA.
Markets in the United Arab Emirates (UAE) finished higher on Wednesday, with Abu Dhabi index .ADI leading the advancements, buoyed by gains in the country's largest lender First Abu Dhabi Bank FAB.AD.
The Abu Dhabi benchmark closed 1.4% higher, bouncing back from losses in the previous session.
FAB was the best performer on the Abu Dhabi index, putting on 2.5%, while real estate firm Aldar Properties ALDAR.AD added 3.5%.
The bank on Tuesday after-market hours said its underlying operating performance is expected to improve in 2021, driven mainly by a healthy pipeline of business from government and state-linked companies, and by its latest acquisition in Egypt.
The lender posted a 16% drop in 2020 net profit on higher impairment charges, but that came in better than analysts' average forecast of 9.36 billion dirhams, according to Refinitiv data.
Dubai's main share index .DFMGI gained about 1.1%, with its biggest bank Emirates NBD ENBD.DUadding 2.6% as the lender posted a better-than-expected annual net profit.
Sharia-compliant lender Dubai Islamic Bank DISB.DU tacked on 2%.
Saudi Arabia's benchmark index .TASI, however, edged down 0.1%, dragged by Samba Financial Group 1090.SE, which fell 0.8% and was the worst performer on the index.
Saudi Arabia raised $5 billion in a dual-tranche bond sale with tenors of 12 and 40 years, a document showed, as it seeks to plug a large fiscal deficit.
The world's top oil exporter has taken a severe blow from the pandemic, which, along with a price war between Saudi Arabia and Russia last year, sent crude prices tumbling.
In Qatar, the index .QSI eked out a narrow 0.1% gain, breaking a four-session losing run.
Qatar Industries IQCD.QA was the best performer, adding 0.8%, while Qatar National Bank QNBK.QA, the Gulf's biggest lender by assets, rose 0.6%.
The index's gains, however, were capped by a 1.8% decline in Qatar International Islamic Bank QIIB.QA.
#SaudiArabia Gets Its Timing Right For the Davos of the Desert - Bloomberg
Saudi Arabia Gets Its Timing Right For the Davos of the Desert - Bloomberg
The “Davos in the Desert,” as the annual Future Investment Initiative in Riyadh has come to be known, has often been associated with controversy and crisis. As Saudi Crown Prince Mohammed bin Salman’s showcase event for investors, this year's event may be a chance for a rebound. Investors are anxious to see clear skies and signs of recovery after a difficult 2020.
The inaugural gathering in 2017 was quickly overshadowed by what the government claimed was a crackdown on corruption, in which the venue of the event, Riyadh’s Ritz-Carlton hotel, was turned into a prison for hundreds of rich and powerful Saudis. The detentions of many prominent businesspeople inevitably had a chilling effect on foreign direct investment, which fell to a 14-year low in 2017. The following year, the event was haunted by the recent murder of journalist Jamal Khashoggi: Spooked by the international outcry, global business leaders stayed away.
The 2019 FII was scaled down (along with the size of the initial public offering of the country’s biggest company, Saudi Aramco) as the government tried to refocus efforts on concrete economic reforms. Though foreign direct investment showed a slight pick-up that year, it hasn’t accelerated. And the 2020 edition had to be postponed as the coronavirus pandemic killed off investor interest and stalled progress on major infrastructure and tourism initiatives.
MBS, as the crown prince is commonly known, will be hoping for better as the fourth FII kicks off today. For all the controversies of previous years, his own position as the kingdom’s de facto ruler is unchallenged: He wields complete political authority as well as command of the driving force behind the economy and the country's economic development model, the Public Investment Fund. If there are investment opportunities to be had in Saudi Arabia, they will go through him.
The “Davos in the Desert,” as the annual Future Investment Initiative in Riyadh has come to be known, has often been associated with controversy and crisis. As Saudi Crown Prince Mohammed bin Salman’s showcase event for investors, this year's event may be a chance for a rebound. Investors are anxious to see clear skies and signs of recovery after a difficult 2020.
The inaugural gathering in 2017 was quickly overshadowed by what the government claimed was a crackdown on corruption, in which the venue of the event, Riyadh’s Ritz-Carlton hotel, was turned into a prison for hundreds of rich and powerful Saudis. The detentions of many prominent businesspeople inevitably had a chilling effect on foreign direct investment, which fell to a 14-year low in 2017. The following year, the event was haunted by the recent murder of journalist Jamal Khashoggi: Spooked by the international outcry, global business leaders stayed away.
The 2019 FII was scaled down (along with the size of the initial public offering of the country’s biggest company, Saudi Aramco) as the government tried to refocus efforts on concrete economic reforms. Though foreign direct investment showed a slight pick-up that year, it hasn’t accelerated. And the 2020 edition had to be postponed as the coronavirus pandemic killed off investor interest and stalled progress on major infrastructure and tourism initiatives.
MBS, as the crown prince is commonly known, will be hoping for better as the fourth FII kicks off today. For all the controversies of previous years, his own position as the kingdom’s de facto ruler is unchallenged: He wields complete political authority as well as command of the driving force behind the economy and the country's economic development model, the Public Investment Fund. If there are investment opportunities to be had in Saudi Arabia, they will go through him.
#Dubai's Emirates NBD full year profit plunges 52%; board recommends dividend | ZAWYA MENA Edition
Dubai's Emirates NBD full year profit plunges 52%; board recommends dividend | ZAWYA MENA Edition
Dubai's biggest bank Emirates NBD reported a 52 percent plunge in full-year net profit due to a rise in provisions for bad loans and no repeat of the gain on disposal of Network International shares in 2019.
Net profit for the year fell to 6.97 billion dirhams ($1.9 billion) from 14.5 billion dirhams in 2019 when Emirates NBD sold a stake in payments processor Network International. The board of Emirates NBD has recommended a dividend of 40 fils per share.
The bank's impairment allowances increased to 7.9 billion dirhams reflecting weaker credit environment impact of COVID-19 with net cost of risk at 163 bps. Net interest margin declined 24 bps y-o-y to 2.65 percent following cuts in base interest rates in the first half of 2020.
Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “Emirates NBD delivered a net profit of 7 billion dirhams in 2020 despite the global pandemic that caused major disruption to individuals, communities and businesses. As the official banking partner of Expo 2020 Dubai, we look forward to helping showcase the UAE’s innovative, tolerant and proud culture as we welcome the world to the UAE. In light of the Bank’s performance, we are proposing a cash dividend at 40 fils per share.”
Dubai's biggest bank Emirates NBD reported a 52 percent plunge in full-year net profit due to a rise in provisions for bad loans and no repeat of the gain on disposal of Network International shares in 2019.
Net profit for the year fell to 6.97 billion dirhams ($1.9 billion) from 14.5 billion dirhams in 2019 when Emirates NBD sold a stake in payments processor Network International. The board of Emirates NBD has recommended a dividend of 40 fils per share.
The bank's impairment allowances increased to 7.9 billion dirhams reflecting weaker credit environment impact of COVID-19 with net cost of risk at 163 bps. Net interest margin declined 24 bps y-o-y to 2.65 percent following cuts in base interest rates in the first half of 2020.
Sheikh Ahmed Bin Saeed Al Maktoum, Chairman, Emirates NBD said: “Emirates NBD delivered a net profit of 7 billion dirhams in 2020 despite the global pandemic that caused major disruption to individuals, communities and businesses. As the official banking partner of Expo 2020 Dubai, we look forward to helping showcase the UAE’s innovative, tolerant and proud culture as we welcome the world to the UAE. In light of the Bank’s performance, we are proposing a cash dividend at 40 fils per share.”
ADX plans new listings, derivatives trading in drive to double market cap | ZAWYA MENA Edition
ADX plans new listings, derivatives trading in drive to double market cap | ZAWYA MENA Edition
The Abu Dhabi Securities Exchange (ADX) plans to double market capitalisation over the next three years by increasing liquidity and improving market efficiency, the exchange said in a statement Wednesday.
A new strategy called “ADX One”, which includes new listings, launch of derivatives trading and research coverage, aims to adopt best international practices and make the exchange more attractive for foreign investors, the exchange said in a statement Wednesday.
The new strategy comes as the market capitalisation of companies listed on the ADX rose 40 percent in 2020 to a record 750 billion dirhams. The market value of foreign-owned shares in ADX-listed companies topped 60 billion dirhams at the end of December last year.
The ADX is the second-largest exchange in the region, behind Saudi Arabia’s Tadawul. Among its heavyweight listings are First Abu Dhabi Bank and Etisalat.
The Abu Dhabi Securities Exchange (ADX) plans to double market capitalisation over the next three years by increasing liquidity and improving market efficiency, the exchange said in a statement Wednesday.
A new strategy called “ADX One”, which includes new listings, launch of derivatives trading and research coverage, aims to adopt best international practices and make the exchange more attractive for foreign investors, the exchange said in a statement Wednesday.
The new strategy comes as the market capitalisation of companies listed on the ADX rose 40 percent in 2020 to a record 750 billion dirhams. The market value of foreign-owned shares in ADX-listed companies topped 60 billion dirhams at the end of December last year.
The ADX is the second-largest exchange in the region, behind Saudi Arabia’s Tadawul. Among its heavyweight listings are First Abu Dhabi Bank and Etisalat.
Top #AbuDhabi Lender Names Al Rostamani as First Female CEO - Bloomberg
Top Abu Dhabi Lender Names Al Rostamani as First Female CEO - Bloomberg
First Abu Dhabi Bank PJSC appointed Hana Al Rostamani as group chief executive officer, promoting a woman to the top leadership position in a male-dominated sector.
Al Rostamani will be the first female CEO of the biggest lender in the United Arab Emirates, taking over from Andre Sayegh, who spent less than a year in the role. She is currently deputy group CEO and head of personal banking.
“FAB has always been an organization that champions diversity and the appointment of our first female Group CEO to lead our company into the future is truly something to value,” Chairman Sheikh Tahnoon Bin Zayed Al Nahyan said.
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| Hana Al Rostamani Source: First Abu Dhabi Bank PJSC |
First Abu Dhabi Bank PJSC appointed Hana Al Rostamani as group chief executive officer, promoting a woman to the top leadership position in a male-dominated sector.
Al Rostamani will be the first female CEO of the biggest lender in the United Arab Emirates, taking over from Andre Sayegh, who spent less than a year in the role. She is currently deputy group CEO and head of personal banking.
“FAB has always been an organization that champions diversity and the appointment of our first female Group CEO to lead our company into the future is truly something to value,” Chairman Sheikh Tahnoon Bin Zayed Al Nahyan said.
#Saudi Sovereign Fund Sets Sky-High Targets for Tough Next Act - Bloomberg
Saudi Sovereign Fund Sets Sky-High Targets for Tough Next Act - Bloomberg
Saudi Arabia’s $400 billion sovereign wealth fund will find it tough to repeat its success of recent years when it made its mark globally as a source of cash for asset managers, tech entrepreneurs and tycoons.
Ahead of the kingdom’s flagship investment conference this week, Saudi Crown Prince Mohammed bin Salman laid out the fund’s strategy through 2025. It’ll spend at least $40 billion a year at home, creating new cities and industries, along with 1.8 million jobs. It plans to more than double assets it controls to over 4 trillion riyals ($1.1 trillion), putting it on par with the current size of Norway’s sovereign fund, the world’s biggest.
But as investors tune in Wednesday to the annual meeting dubbed “Davos in the Desert” by participants -- held as a hybrid virtual-physical event due to Covid-19 -- many will recall that Saudi Arabia’s track record on ambitious projects is patchy.
Saudi Arabia’s $400 billion sovereign wealth fund will find it tough to repeat its success of recent years when it made its mark globally as a source of cash for asset managers, tech entrepreneurs and tycoons.
Ahead of the kingdom’s flagship investment conference this week, Saudi Crown Prince Mohammed bin Salman laid out the fund’s strategy through 2025. It’ll spend at least $40 billion a year at home, creating new cities and industries, along with 1.8 million jobs. It plans to more than double assets it controls to over 4 trillion riyals ($1.1 trillion), putting it on par with the current size of Norway’s sovereign fund, the world’s biggest.
But as investors tune in Wednesday to the annual meeting dubbed “Davos in the Desert” by participants -- held as a hybrid virtual-physical event due to Covid-19 -- many will recall that Saudi Arabia’s track record on ambitious projects is patchy.
Top #UAE Banks Fare Better Than Expected With Payouts Intact - Bloomberg
Top UAE Banks Fare Better Than Expected With Payouts Intact - Bloomberg
The two biggest banks in the United Arab Emirates reported a decline in annual profit that was less severe than expected as the lenders brace for the full brunt of the economic fallout from the coronavirus pandemic and lower oil prices.
Emirates NBD PJSC, Dubai’s biggest lender, and First Abu Dhabi Bank PJSC, its counterpart in the UAE capital, both maintained their dividend payouts for 2020 despite a surge in impairment losses as their buffers to protect depositors against shocks remained strong. Shares of both banks rose.
While an acceleration in the pace of vaccine distribution and a normalization in travel is helping to partly offset the drop in crude prices and output due to the Covid-19 outbreak, the economy is struggling to gain traction. The profitability of UAE lenders is expected to remain under pressure this year as the central bank phases out support measures introduced to shield the economy from the damage caused by the Covid-19 outbreak and bad debts climb, according to S&P Global Ratings.
The two biggest banks in the United Arab Emirates reported a decline in annual profit that was less severe than expected as the lenders brace for the full brunt of the economic fallout from the coronavirus pandemic and lower oil prices.
Emirates NBD PJSC, Dubai’s biggest lender, and First Abu Dhabi Bank PJSC, its counterpart in the UAE capital, both maintained their dividend payouts for 2020 despite a surge in impairment losses as their buffers to protect depositors against shocks remained strong. Shares of both banks rose.
While an acceleration in the pace of vaccine distribution and a normalization in travel is helping to partly offset the drop in crude prices and output due to the Covid-19 outbreak, the economy is struggling to gain traction. The profitability of UAE lenders is expected to remain under pressure this year as the central bank phases out support measures introduced to shield the economy from the damage caused by the Covid-19 outbreak and bad debts climb, according to S&P Global Ratings.
Oil up above $56 on lower U.S. stockpiles, drop in new Chinese COVID-19 cases | Reuters
Oil up above $56 on lower U.S. stockpiles, drop in new Chinese COVID-19 cases | Reuters
Oil rose above $56 a barrel on Wednesday after industry data showed U.S. crude inventories fell unexpectedly and as concerns eased about a resurgence in coronavirus cases in China, the world’s second-biggest oil user.
Industry group the American Petroleum Institute (API) said U.S. crude inventories fell by 5.3 million barrels. Analysts had expected them to rise. Official inventory figures are due at 1530 GMT from the Energy Information Administration. [EIA/S]
Brent crude climbed 51 cents, or 0.9%, to $56.42 a barrel at 0920 GMT. U.S. West Texas Intermediate (WTI) crude rose 41 cents, or 0.8%, to $53.02.
“Oil prices are inching higher this morning amid data pointing to an unexpected drop in US crude stocks,” said Stephen Brennock of broker PVM.
Brent is near an 11-month high of $57.42 reached on Jan. 13, having recovered from a 21-year low below $16 in April due to a demand recovery particularly in China and huge supply cuts by OPEC and its allies, known as OPEC+.
Oil rose above $56 a barrel on Wednesday after industry data showed U.S. crude inventories fell unexpectedly and as concerns eased about a resurgence in coronavirus cases in China, the world’s second-biggest oil user.
Industry group the American Petroleum Institute (API) said U.S. crude inventories fell by 5.3 million barrels. Analysts had expected them to rise. Official inventory figures are due at 1530 GMT from the Energy Information Administration. [EIA/S]
Brent crude climbed 51 cents, or 0.9%, to $56.42 a barrel at 0920 GMT. U.S. West Texas Intermediate (WTI) crude rose 41 cents, or 0.8%, to $53.02.
“Oil prices are inching higher this morning amid data pointing to an unexpected drop in US crude stocks,” said Stephen Brennock of broker PVM.
Brent is near an 11-month high of $57.42 reached on Jan. 13, having recovered from a 21-year low below $16 in April due to a demand recovery particularly in China and huge supply cuts by OPEC and its allies, known as OPEC+.
MIDEAST STOCKS-Lender FAB buoys #AbuDhabi as major Gulf markets rise | Nasdaq
MIDEAST STOCKS-Lender FAB buoys Abu Dhabi as major Gulf markets rise | Nasdaq
Major stock markets in the Gulf traded higher on Wednesday, with the Abu Dhabi index leading the gains, boosted by top lender First Abu Dhabi Bank.
In Abu Dhabi, the index .ADI advanced 1.1%, buoyed by a 1.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 3.5% jump in Aldar Properties ALDAR.AD.
FAB, the United Arab Emirates' largest lender, posted a net profit of 10.6 billion dirhams ($2.89 billion) in the year ended Dec. 31, down from 12.5 billion dirhams in the same period a year earlier.
The net profit, however, came in better than analysts' average forecast of 9.36 billion dirhams, according to Refinitiv data.
Dubai's main share index .DFMGI gained 1.1%, with sharia-compliant lender Dubai Islamic Bank DISB.DU rising 2.2%, while Emirates NBD ENBD.DU traded 1.7% higher after the lender posted its full-year numbers.
Saudi Arabia's benchmark index .TASI added 0.1%, bolstered by a 0.6% increase in Al Rajhi Bank 1120.SE.
The kingdom's economy will grow 2.6% this year, the International Monetary Fund said on Tuesday, after the economy of the world's top oil exporter shrank last year due to low oil prices and the coronavirus crisis.
Saudi Arabia itself has estimated its economy could swing back to growth of 3.2% this year after a 3.7% contraction in 2020.
In Qatar, the index .QSI edged up 0.1%, helped by a 1.4%gain in Qatar National Bank <QNBK.QA, the Gulf's biggest lender by assets.
The index's gains, however, were capped by a 1.6% decline in Commercial Bank COMB.QA, which is scheduled to report its 2020 results.
Major stock markets in the Gulf traded higher on Wednesday, with the Abu Dhabi index leading the gains, boosted by top lender First Abu Dhabi Bank.
In Abu Dhabi, the index .ADI advanced 1.1%, buoyed by a 1.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 3.5% jump in Aldar Properties ALDAR.AD.
FAB, the United Arab Emirates' largest lender, posted a net profit of 10.6 billion dirhams ($2.89 billion) in the year ended Dec. 31, down from 12.5 billion dirhams in the same period a year earlier.
The net profit, however, came in better than analysts' average forecast of 9.36 billion dirhams, according to Refinitiv data.
Dubai's main share index .DFMGI gained 1.1%, with sharia-compliant lender Dubai Islamic Bank DISB.DU rising 2.2%, while Emirates NBD ENBD.DU traded 1.7% higher after the lender posted its full-year numbers.
Saudi Arabia's benchmark index .TASI added 0.1%, bolstered by a 0.6% increase in Al Rajhi Bank 1120.SE.
The kingdom's economy will grow 2.6% this year, the International Monetary Fund said on Tuesday, after the economy of the world's top oil exporter shrank last year due to low oil prices and the coronavirus crisis.
Saudi Arabia itself has estimated its economy could swing back to growth of 3.2% this year after a 3.7% contraction in 2020.
In Qatar, the index .QSI edged up 0.1%, helped by a 1.4%gain in Qatar National Bank <QNBK.QA, the Gulf's biggest lender by assets.
The index's gains, however, were capped by a 1.6% decline in Commercial Bank COMB.QA, which is scheduled to report its 2020 results.