Most Gulf bourses in red as COVID-19 cases rise | Reuters

Most Gulf bourses in red as COVID-19 cases rise | Reuters

Most stock markets in the Gulf ended lower on Sunday, with the Saudi index shedding the most as rising coronavirus cases across the region weighed on investor sentiment.

COVID-19 infections have started rising again after months of low or falling figures, data from health ministries has shown, as the Omicron variant spreads across the world. read more

Saudi Arabia's benchmark index (.TASI) dropped 0.9%, dragged down by a 0.9% fall in Al Rajhi Bank (1120.SE) and a 1.4% decrease in Saudi National Bank (1180.SE), the kingdom's biggest lender.

Health authorities there advised citizens and residents last week to avoid all unnecessary foreign travel. Saudi Arabia reported its first Omicron case on Dec. 1.

In Abu Dhabi, the index (.ADI) fell 0.4%, with Abu Dhabi Islamic Bank (ADIB.AD) retreating 2.2%.

The United Arab Emirates (UAE) has experienced a particularly sharp increase in COVID-19 infections since announcing the arrival of Omicron this month, with 1,002 cases recorded on Thursday, up from 68 on Dec. 2.

The resurgence comes during the region's peak tourism season, especially in the UAE, which is welcoming millions of visitors to the Expo 2020 Dubai world fair and other seasonal events.

The Qatari index (.QSI) lost 0.4%, pressured by a 0.7% decline in the Gulf's biggest lender, Qatar National Bank (QNBK.QA).

Dubai's main share index (.DFMGI) however, gained 0.5%, led by a 7.5% jump in Deyaar Development (DEYR.DU).

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.8% higher, with top lender Commercial International Bank (COMI.CA) rising 1.7%.

#SaudiArabia’s Exports Surge in October on Higher Oil Prices - Bloomberg

Saudi Arabia’s Exports Surge in October on Higher Oil Prices - Bloomberg

Saudi Arabia’s exports soared in October as the world’s biggest oil exporter benefited from higher crude prices.

The value of exports jumped to 106.2 billion riyals ($28 billion) from 55.9 billion riyals a year ago, according to the kingdom’s General Authority for Statistics. The share of oil in total exports rose to 77.6% in October from 66.1%.

Saudi Arabia’s economy has rebounded this year as oil prices soared and the impact of the coronavirus pandemic eased. This month, the kingdom boosted its revenue forecast for next year, with higher crude output and prices poised to deliver the first budget surplus in eight years and the fastest economic growth since 2011.

The value of oil exports rose 123%, or by 45.5 billion riyals, year-on-year in October, according to the statistics authority. Non-oil exports increased 25.5% to 23.8 billion riyals.

Oil has gained about 50% this year with a robust rebound from the pandemic, but the rally has faltered recently, in part due to concerns about omicron. There are some signs of tightening emerging, however, with supply disruptions in Libya and Nigeria, while the demand outlook was boosted in recent days by positive news about the severity of omicron.

Most Gulf bourses retreat as COVID-19 cases rise | Reuters

Most Gulf bourses retreat as COVID-19 cases rise | Reuters

Most stock markets in the Gulf were subdued on Sunday, with coronavirus infections across the region rising again after months of low or falling figures. read more

Saudi Arabia's benchmark index (.TASI) lost 0.2%, dented by a 0.3% fall for Al Rajhi Bank (1120.SE) and a 0.6% decline for Saudi National Bank (1180.SE).

Health authorities in the kingdom advised citizens and residents last week to avoid all unnecessary foreign travel. Saudi Arabia reported its first case of the Omicron coronavirus variant on Dec. 1.

Among other losers, Jabal Omar Development Co (4250.SE) slid 2.4%, after increasing the volume of shares offered to the fund manager of Alinma Makkah Real Estate Fund to settle payment obligations owed to the fund.

A Saudi citizen and a Yemeni resident were killed after a Houthi projectile hit the southern Saudi city of Jazan on Friday, Saudi state media reported, in continued escalation of conflict between the Saudi-led coalition fighting the Iran-aligned Houthis in Yemen. read more

The war in Yemen has cost Riyadh billions of dollars as the world's biggest oil exporter contends with additional pressure on state finances because of weak oil prices.

The Abu Dhabi index (.ADI), meanwhile, dropped 0.3% as Abu Dhabi Islamic Bank (ADIB.AD) retreated by 2% and the country's largest lender, First Abu Dhabi Bank (FAB.AD), lost 0.7%.

Dubai's main share index (.DFMGI) was flat in early trade.

The United Arab Emirates (UAE) has experienced a particularly sharp increase in COVID-19 infections since announcing the arrival of Omicron early this month, with 1,621 coronavirus cases recorded on Saturday, up from 68 on Dec. 2. read more

The resurgence comes during the region's peak tourism season, especially in the UAE, which is welcoming millions of visitors to the Expo 2020 Dubai world fair and other seasonal events. read more

The Qatari index (.QSI) eased 0.3%, pressured by a 0.8% decline for the Gulf's biggest lender, Qatar National Bank (QNBK.QA).

#UAE Intends to Remove Monopolies of Some Family Businesses: FT - Bloomberg

UAE Intends to Remove Monopolies of Some Family Businesses: FT - Bloomberg

The United Arab Emirates has told some of its biggest family businesses that it plans to remove their monopolies on the sale of imported goods, the Financial Times reported.

The government has proposed legislation ending the automatic renewal of commercial agency agreements, the newspaper reported. It would enable foreign companies to distribute their own goods or change their local agent on contract expiry, FT said.

A law is expected to be approved by the emirati leadership, the FT reported, citing unidentified officials. The timing remains uncertain and the FT said the UAE government didn’t provide a comment for the story.

Family-owned businesses make up majority of commercial activities in the Gulf nation, owning franchises of supermarket chains to car dealerships. Some of the well-known family-owned businesses in Dubai, part of the UAE, include Majid Al Futtaim Holding, the operator of Carrefour SA stores in the Middle East, and Al Habtoor Group, which owns hotels, properties and holds car dealerships.

#UAE pushes merchant families to open up to competition | Financial Times

UAE pushes merchant families to open up to competition | Financial Times

The United Arab Emirates government has told some of its biggest business families that it intends to remove their monopolies on the sale of imported goods as the Gulf state deepens economic reforms in an effort to attract more investment. 

For decades, multinationals have had to appoint local partners to distribute their goods. The government has proposed legislation ending the automatic renewal of existing commercial agency agreements, giving foreign firms the flexibility to distribute their own goods or change their local agent on contract expiry. 

“It no longer makes sense for individual families to have such power and preferential access to easy wealth,” said an Emirati official. “We have to modernise our economy.” Officials have indicated that the new law is expected to be approved by Emirati leadership but the timing remains uncertain. The UAE government did not provide comment. 

The proposed reform would tear up the longstanding social contract between the government and influential merchant families, including storied names such as Al Futtaim, Al Rostamani and Juma Al Majid, replacing decades of protection for local interests in favour of foreign entities. “This is one of the taboos most difficult to touch due to its impact on family-owned local businesses, one of the largest sectors of the UAE economy,” said Habib Al Mulla, executive chair of law firm Baker McKenzie’s Middle Eastern branch.