Major Gulf stocks rise on higher oil prices, China demand prospects | Reuters
Most major Gulf markets ended higher on Sunday, reflecting Friday's rise in oil prices driven by prospects that an upbeat economic growth outlook from China could signal increased fuel demand in the world's second-largest economy.
Oil, which fuels the region's economies, settled up about $1 a barrel on Friday, with Brent crude at $87.63 a barrel, up $1.47 or 1.7%.
The International Energy Agency (IEA) said on Wednesday that China's lifting of COVID-19 restrictions should bring global demand to a record high this year. OPEC also forecast a rebound in Chinese demand.
Saudi Arabia's benchmark index (.TASI) rose 0.4%, supported by a 1.5% gain in luxury real estate developer Retal Urban Development (4322.SE) and a 0.8% rise in oil giant Aramco (2222.SE).
Al Rajhi Bank (1120.SE), the world's largest Islamic bank by market capitalization, rose 0.5%.
The Qatari Stock index (.QSI) inched up 0.9%, with almost all its constituent stocks in positive territory. The Gulf's biggest lender Qatar National Bank (QNBK.QA) continued its rally with a 2.3% gain and Qatar Islamic Bank (QISB.QA) rose 1.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.3%, helped by a 10.5% jump in Housing and Development Bank (HDBK.CA) and a 2.1% gain in El Sewedy Electric (SWDY.CA).
UAE stock markets can ride GDP gains for a solid showing in 2023 | Analysis – Gulf News
After ending 2022 on a high, UAE stocks are poised for a sturdy performance in 2023. Economic activity in the UAE is set to surpass historical trends, buoyed by a pipeline of infrastructure projects, new stock market listings, further recovery in tourism, elevated oil prices, and growing hydrocarbon output. The IMF forecasts non-hydrocarbon GDP growth of 4 per cent in 2023, while the World Bank forecasts UAE to grow by 4.1 per cent.
As such, the UAE is expected to outperform most global economies and be the fastest-growing GCC nation. Reopening of the Chinese economy has bolstered the demand outlook for fuel, lending support to oil prices. Right after lockdown restrictions were lifted, Chinese outbound travel bookings surged 250 per cent while visa applications for international travel rose 12x year-on-year. The UAE will undoubtedly benefit from such pent-up travel demand.
UAE’s real estate sector is defying the global trend of diminishing liquidity and deteriorating market confidence arising from macro-economic headwinds. Stable economic conditions, business reforms, and government initiatives like the Golden Visa are attracting foreign real estate investors to the UAE. The return of Chinese investors is a substantial tailwind. Demand for industrial and logistics space remains high while supply is limited, thereby presenting opportunities.
The GCC region saw record IPO activity in 2022. This trend is set to continue, with Dubai on track to attract new IPO listings. Dubai will also host the MENA IPO Summit during January 23-25 to highlight the growing IPO opportunities in the region. Robust economic fundamentals and regulatory advancements have created an environment conducive to new listings, compelling many privately-owned firms to think of going public.
Saudi Arabia’s Almarai reports 24% rise in fourth-quarter profit on higher sales
Saudi Arabia's Almarai, the Middle East's largest dairy company, has reported a 24 per cent rise in fourth-quarter net profit, boosted by higher sales in its poultry and bakery businesses.
Consolidated profit attributable to shareholders for the three-month period ending December 31 climbed to 355.8 million Saudi riyals ($94.8 million), compared with 286.5 million riyals during the same period last year, the company said in a statement on Sunday to the Saudi stock exchange Tadawul, where its shares are traded.
Revenue during the period rose nearly 14 per cent to 4.84 billion riyals.
“Positive trend from the first three quarters have continued in the fourth quarter, driven mainly by poultry and bakery [businesses]. Volume growth rates have continued in the current quarter driven by food service expansion and school normalisation activities,” Almarai said in the statement.
Oman Energy Firm OQ to Sell 49% Stake in Oil-Drilling Unit IPO - Bloomberg
Oman energy firm OQ SAOC plans to sell up to 49% of its oil drilling unit Abraj Energy Services SAOC in an initial public offering, kick-starting the sultanate’s push to join a listings boom sweeping through the Middle East.
The subscription period will start in February and the shares are expected to start trading on the Muscat stock exchange in March, according to a statement. The IPO could raise as much as $500 million, Bloomberg News reported in September.
Oman is joining its energy-rich Gulf neighbors — especially the United Arab Emirates and Saudi Arabia — in selling assets to fund the diversification of their economies and open up their stock markets to more international investors. The drive led to a banner year for IPOs in the region in 2022, defying a global slump in share sales caused by fears over high inflation and interest rate hikes.
