Most Gulf central banks mirror Fed's 25 bps rate hike, Qatar holds | Reuters
Most central banks across the Gulf raised key interest rates on Wednesday after the Federal Reserve increased its target interest rate by a quarter of a percentage point, although Qatar opted to hold.
The Fed raised its target interest rate by 25 basis points, signaling a more dovish stance after a series of larger hikes, but maintained that increases would continue as it battles to rein in inflation in the United States.
Gulf oil exporters tend to follow the Fed's lead on rate moves as the majority of regional currencies are pegged to the U.S. dollar.
The central banks of Saudi Arabia and the United Arab Emirates, the region's two largest economies, both followed the Fed in increasing rates by 25 bps.
The Saudi Central Bank, also known as SAMA, lifted its repo and reverse repo rates to 5.25% and 4.75%, respectively, while the UAE said its base rate would increase to 4.65% effective on Thursday.
Bahrain also lifted its key interest rates by the same. Its one-week deposit facility rate was increased to 5.5% and the overnight deposit rate to 5.25%.
However, Qatar's central bank decided to leave rates unchanged and kept its deposit, lending and repo rates at 5%, 5.5% and 5.25%, respectively.
"Qatar Central Bank aims to maintain the current interest rates at an appropriate level to support sustainable economic growth," it said in a statement.
Qatar has mirrored the Fed's moves following each policy rate meeting since March, though in November it raised its deposit and repo rates by 75 basis points - matching the Fed's hike - but only lifted its lending rate by 50 basis points.
"The step-down in the magnitude of the rate hike is positive for the GCC, who have not required such an aggressive tightening cycle," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
"We expect to see some greater impact of the rate hikes this year on credit demand, though the investment programmes should provide some support the credit growth," Malik added.
Wednesday 1 February 2023
Basra Oil Company head expects #Qatar to take 20-25% stake in TotalEnergies' Iraq project | Reuters
Basra Oil Company head expects Qatar to take 20-25% stake in TotalEnergies' Iraq project | Reuters
The head of Iraq's Basra Oil Company (BOC) told Reuters on Wednesday that he expects Qatar to acquire a 20-25% stake in TotalEnergies' (TTEF.PA) $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%.
A major investment in the projects by a Gulf state would be an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil. It would also be considered a step towards countering Iranian influence.
"Qatar is one of the promising and developed countries in this regard...we determine our percentage as an Iraqi country, and the rest is for Total and QatarEnergy...I don't expect more than 20-25%, they are talking about 30%," said Bassem Abdul Karim, director general of state-run BOC, referring to Qatar's potential stake.
"The important thing for us is to set our share...Iraq is talking about 40%."
The head of Iraq's Basra Oil Company (BOC) told Reuters on Wednesday that he expects Qatar to acquire a 20-25% stake in TotalEnergies' (TTEF.PA) $27 billion cluster of energy projects in the country, with the Baghdad government aiming to hold around 40%.
A major investment in the projects by a Gulf state would be an important win for Iraqi Prime Minister Mohammed al-Sudani, who took office last October following more than a year of political turmoil. It would also be considered a step towards countering Iranian influence.
"Qatar is one of the promising and developed countries in this regard...we determine our percentage as an Iraqi country, and the rest is for Total and QatarEnergy...I don't expect more than 20-25%, they are talking about 30%," said Bassem Abdul Karim, director general of state-run BOC, referring to Qatar's potential stake.
"The important thing for us is to set our share...Iraq is talking about 40%."
Airbus and #Qatar settle A350 jetliner row | Reuters
Airbus and Qatar settle A350 jetliner row | Reuters
Airbus (AIR.PA) and Qatar Airways have settled a dispute over surface damage on grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial.
The "amicable settlement" ends a $2 billion row over the safety of Europe's premier long-haul jet - an unprecedented public rift that had led Airbus to revoke dozens of other jet orders from Qatar ahead of a scheduled June court trial.
The companies said the deal was not an admission of liability by either party, both of which would drop their legal claims and "move forward and work together as partners".
French Finance Minister Bruno Le Maire welcomed the settlement.
The announcement comes after Reuters reported that a deal could be reached as early as Wednesday.
Qatar had challenged the world's largest planemaker over safety and taken it to court after cracks in the painted surface exposed gaps in a sub-layer of A350 lightning protection, prompting its regulator to ground 29 of the jets.
Airbus has acknowledged quality flaws but insisted that the jets are safe.
Airbus (AIR.PA) and Qatar Airways have settled a dispute over surface damage on grounded A350 jets, the companies said on Wednesday, averting a potentially damaging UK court trial.
The "amicable settlement" ends a $2 billion row over the safety of Europe's premier long-haul jet - an unprecedented public rift that had led Airbus to revoke dozens of other jet orders from Qatar ahead of a scheduled June court trial.
The companies said the deal was not an admission of liability by either party, both of which would drop their legal claims and "move forward and work together as partners".
French Finance Minister Bruno Le Maire welcomed the settlement.
The announcement comes after Reuters reported that a deal could be reached as early as Wednesday.
Qatar had challenged the world's largest planemaker over safety and taken it to court after cracks in the painted surface exposed gaps in a sub-layer of A350 lightning protection, prompting its regulator to ground 29 of the jets.
Airbus has acknowledged quality flaws but insisted that the jets are safe.
#Qatar's central bank keeps rates unchanged after Fed's 25 bps hike | Reuters
Qatar's central bank keeps rates unchanged after Fed's 25 bps hike | Reuters
Qatar's central bank said on Wednesday it was keeping its interest rates unchanged after the U.S. Federal Reserve's hike of 25 basis points.
The Central Bank of Qatar kept its deposit, lending and repo rates at 5%, 5.5% and 5.25%, respectively. CBQ typically follows the Fed's moves as the Qatari riyal is pegged to the dollar.
Qatar's central bank said on Wednesday it was keeping its interest rates unchanged after the U.S. Federal Reserve's hike of 25 basis points.
The Central Bank of Qatar kept its deposit, lending and repo rates at 5%, 5.5% and 5.25%, respectively. CBQ typically follows the Fed's moves as the Qatari riyal is pegged to the dollar.
Airbus and #Qatar may settle A350 row as early as today -sources | Reuters
Airbus and Qatar may settle A350 row as early as today -sources | Reuters
Hopes are rising of a deal between Airbus (AIR.PA) and Qatar Airways as early as Wednesday to avert an unprecedented trial over the safety of the A350 jetliner and billions of dollars of cancelled orders, two people familiar with the matter said.
The two companies have narrowed differences over damage to more than two dozen grounded jets after political intervention and technical talks, but resolving the $2 billion dispute depends on a round of senior talks on Wednesday, they added.
France-based Airbus and Qatar Airways declined to comment.
Qatar has challenged the world's largest planemaker over safety and taken it to court after cracks in the painted surface exposed gaps in a sub-layer of A350 lightning protection.
Airbus has acknowledged quality flaws but insists the jets are safe and retaliated by revoking dozens of plane orders from Qatar. A rare UK corporate trial has been set for June.
Hopes are rising of a deal between Airbus (AIR.PA) and Qatar Airways as early as Wednesday to avert an unprecedented trial over the safety of the A350 jetliner and billions of dollars of cancelled orders, two people familiar with the matter said.
The two companies have narrowed differences over damage to more than two dozen grounded jets after political intervention and technical talks, but resolving the $2 billion dispute depends on a round of senior talks on Wednesday, they added.
France-based Airbus and Qatar Airways declined to comment.
Qatar has challenged the world's largest planemaker over safety and taken it to court after cracks in the painted surface exposed gaps in a sub-layer of A350 lightning protection.
Airbus has acknowledged quality flaws but insists the jets are safe and retaliated by revoking dozens of plane orders from Qatar. A rare UK corporate trial has been set for June.
#SaudiArabia's PIF and Aerofarms sign deal to establish 'indoor vertical farms' -SPA | Reuters
Saudi Arabia's PIF and Aerofarms sign deal to establish 'indoor vertical farms' -SPA | Reuters
Saudi Arabia's Public Investment Fund and Aerofarms have signed a deal to establish "indoor vertical farms" in the Kingdom and across the Middle East and North Africa, state news agency SPA reported on Wednesday.
Saudi Arabia's Public Investment Fund and Aerofarms have signed a deal to establish "indoor vertical farms" in the Kingdom and across the Middle East and North Africa, state news agency SPA reported on Wednesday.
#Dubai leads Gulf markets higher; #Qatar ends lower | Reuters
Dubai leads Gulf markets higher; Qatar ends lower | Reuters
Dubai stock market closed higher on Wednesday, outperforming the Gulf region, while Qatari stocks retreated amid volatile energy prices.
Dubai's benchmark index (.DFMGI) snapped its losing streak since Friday, climbing 1.4% and marking its best day since September. The index was lifted by gains in almost all constituent stocks.
Emirates NBD (ENBD.DU), Dubai's biggest lender, rose 2.3% and toll operator Salik (SALIK.DU) gained 2.4%.
Dubai Financial Market Co (DFM.DU), the operator of Dubai stock exchange, rose 3.6% after it reported a 41.7% surge in FY net profit.
Mashreq Bank (MASB.DU) added 3%, after the lender proposed annual cash dividend of AED 9 per share, up 800% from last year.
In Abu Dhabi, the index (.FTFADGI) ended 0.3% higher, extending its rally into the third consecutive session, helped by a 1.5% gain in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Abu Dhabi Commercial Bank (ADCB.AD), the UAE's third-largest lender, surged 3.3% on its best day since early November, after achieving 23% growth in both annual and fourth-quarter net profit.
The lender also raised its annual dividend by 48.6% to AED 0.55 per share.
Qatari stock index (.QSI) dropped 1.2%, extending its losses for the third consecutive session with most of its constituent stocks in negative territory.
Gulf's biggest lender Qatar National Bank (QNBK.QA) continued its slide since Monday, falling 2.9%, and Industries Qatar (IQCD.QA) dropping 1.8%.
The Qatari stock market remained under pressure due to the sharp decrease in natural gas prices during the last few weeks, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, it could find some support if energy markets recover in a more consistent manner."
The benchmark index (.TASI) in Saudi Arabia lost 0.1%, weighed down by a 1.1% loss in Al Rajhi Bank (1120.SE) and a 0.2% fall in oil giant Saudi Aramco (2222.SE).
Meanwhile, the International Monetary Fund has revised its 2023 growth forecast for Saudi Arabia to 2.6%, 1.1 percentage points below its October projection.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.2%, dragged down by 4.1% loss in E-Finance (EFIH.CA), 4.8% fall in Talaat Mostafa (TMGH.CA).
Telecom Egypt (ETEL.CA) and EFG Hermes (HRHO.CA) declined 3.3% and 2.4%, respectively.
Dubai stock market closed higher on Wednesday, outperforming the Gulf region, while Qatari stocks retreated amid volatile energy prices.
Dubai's benchmark index (.DFMGI) snapped its losing streak since Friday, climbing 1.4% and marking its best day since September. The index was lifted by gains in almost all constituent stocks.
Emirates NBD (ENBD.DU), Dubai's biggest lender, rose 2.3% and toll operator Salik (SALIK.DU) gained 2.4%.
Dubai Financial Market Co (DFM.DU), the operator of Dubai stock exchange, rose 3.6% after it reported a 41.7% surge in FY net profit.
Mashreq Bank (MASB.DU) added 3%, after the lender proposed annual cash dividend of AED 9 per share, up 800% from last year.
In Abu Dhabi, the index (.FTFADGI) ended 0.3% higher, extending its rally into the third consecutive session, helped by a 1.5% gain in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Abu Dhabi Commercial Bank (ADCB.AD), the UAE's third-largest lender, surged 3.3% on its best day since early November, after achieving 23% growth in both annual and fourth-quarter net profit.
The lender also raised its annual dividend by 48.6% to AED 0.55 per share.
Qatari stock index (.QSI) dropped 1.2%, extending its losses for the third consecutive session with most of its constituent stocks in negative territory.
Gulf's biggest lender Qatar National Bank (QNBK.QA) continued its slide since Monday, falling 2.9%, and Industries Qatar (IQCD.QA) dropping 1.8%.
The Qatari stock market remained under pressure due to the sharp decrease in natural gas prices during the last few weeks, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, it could find some support if energy markets recover in a more consistent manner."
The benchmark index (.TASI) in Saudi Arabia lost 0.1%, weighed down by a 1.1% loss in Al Rajhi Bank (1120.SE) and a 0.2% fall in oil giant Saudi Aramco (2222.SE).
Meanwhile, the International Monetary Fund has revised its 2023 growth forecast for Saudi Arabia to 2.6%, 1.1 percentage points below its October projection.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.2%, dragged down by 4.1% loss in E-Finance (EFIH.CA), 4.8% fall in Talaat Mostafa (TMGH.CA).
Telecom Egypt (ETEL.CA) and EFG Hermes (HRHO.CA) declined 3.3% and 2.4%, respectively.
Adnoc Reveals Record Income for Gas Business Ahead of IPO - Bloomberg
Adnoc Reveals Record Income for Gas Business Ahead of IPO - Bloomberg
The United Arab Emirates’ national energy company has started pitching an initial public offering of its gas business to investors and said it generated a record profit last year, according to people familiar with the matter.
During calls and presentations with potential backers, the firm said the two units merged to create Adnoc Gas made adjusted earnings before tax and interest payments of $8.7 billion in the year-ended October 2022, according to the people. The strong performance came as global gas prices soared after Russia’s invasion of Ukraine and its decision to cut supplies to Europe.
Adnoc Gas was formed at the start of 2023 when Adnoc combined its liquefied natural gas and gas-processing arms.
Companies are typically valued at several multiples of that figure, though investors are also likely to take into consideration figures from earlier years, when income was lower, as well as the fact gas prices have dipped in 2023.
The United Arab Emirates’ national energy company has started pitching an initial public offering of its gas business to investors and said it generated a record profit last year, according to people familiar with the matter.
During calls and presentations with potential backers, the firm said the two units merged to create Adnoc Gas made adjusted earnings before tax and interest payments of $8.7 billion in the year-ended October 2022, according to the people. The strong performance came as global gas prices soared after Russia’s invasion of Ukraine and its decision to cut supplies to Europe.
Adnoc Gas was formed at the start of 2023 when Adnoc combined its liquefied natural gas and gas-processing arms.
Companies are typically valued at several multiples of that figure, though investors are also likely to take into consideration figures from earlier years, when income was lower, as well as the fact gas prices have dipped in 2023.
Kefi Gold Hires Advisors for Dual-Listing in #SaudiArabia Stock Market - Bloomberg
Kefi Gold Hires Advisors for Dual-Listing in Saudi Arabia Stock Market - Bloomberg
Kefi Gold & Copper Plc, the gold explorer with projects in Ethiopia and Saudi Arabia, has hired advisers for a potential dual-listing in Riyadh as companies tap into an IPO boom in the Gulf region.
The proposed listing of Kefi Gold in Saudi Arabia follows agricultural commodity trader Olam Group exploring a similar plan, potentially becoming the first companies from outside the Middle East to trae on the kingdom’s exchange. The London-traded firm said it examined a potential dual-listing in either Canada or Australia but is now prioritizing Saudi Arabia. It didn’t provide the names of advisers.
“We believe now is the ideal time to plan a dual-listing at the appropriate time and expect a positive reception for what would be the first pre-production miner,” Chairman Harry Anagnostaras-Adams said in a statement.
With almost $23 billion raised through initial public offerings in the Gulf last year — about half of the total fetched throughout Europe, the Middle East and Africa — the region emerged as a bright spot in what was otherwise a grim market for share sales, as high inflation and rising interest rates resulted in the worst year for stocks since the global financial crisis.
Olam Group, one of Asia’s biggest agricultural commodity traders, said last month that it will pursue a listing for its agribusiness unit in Singapore and a potential concurrent one in Riyadh this year.
Kefi Gold already has operations in the kingdom and expects two gold and copper projects to begin production in 2025.
Kefi Gold & Copper Plc, the gold explorer with projects in Ethiopia and Saudi Arabia, has hired advisers for a potential dual-listing in Riyadh as companies tap into an IPO boom in the Gulf region.
The proposed listing of Kefi Gold in Saudi Arabia follows agricultural commodity trader Olam Group exploring a similar plan, potentially becoming the first companies from outside the Middle East to trae on the kingdom’s exchange. The London-traded firm said it examined a potential dual-listing in either Canada or Australia but is now prioritizing Saudi Arabia. It didn’t provide the names of advisers.
“We believe now is the ideal time to plan a dual-listing at the appropriate time and expect a positive reception for what would be the first pre-production miner,” Chairman Harry Anagnostaras-Adams said in a statement.
With almost $23 billion raised through initial public offerings in the Gulf last year — about half of the total fetched throughout Europe, the Middle East and Africa — the region emerged as a bright spot in what was otherwise a grim market for share sales, as high inflation and rising interest rates resulted in the worst year for stocks since the global financial crisis.
Olam Group, one of Asia’s biggest agricultural commodity traders, said last month that it will pursue a listing for its agribusiness unit in Singapore and a potential concurrent one in Riyadh this year.
Kefi Gold already has operations in the kingdom and expects two gold and copper projects to begin production in 2025.
DFM's profits to equity holders jumps 42% in 2022; dividends proposed
DFM's profits to equity holders jumps 42% in 2022; dividends proposed
Dubai Financial Market Company (DFM) generated AED 147.11 million net profits attributable to shareholders in 2022, higher by 41.70% than AED 103.84 million a year earlier.
DFM recorded an annual growth of 19% in total revenue to AED 351.20 million during the January-December 2022 period, versus AED 294.60 million, according to the consolidated income statements
Furthermore, the basic earnings per share (EPS) jumped to AED 0.018 last year from AED 0.013 in 2021.
Total assets plummeted to AED 9.49 billion as of 31 December 2022 from AED 9.93 billion in 2021.
Dubai Financial Market Company (DFM) generated AED 147.11 million net profits attributable to shareholders in 2022, higher by 41.70% than AED 103.84 million a year earlier.
DFM recorded an annual growth of 19% in total revenue to AED 351.20 million during the January-December 2022 period, versus AED 294.60 million, according to the consolidated income statements
Furthermore, the basic earnings per share (EPS) jumped to AED 0.018 last year from AED 0.013 in 2021.
Total assets plummeted to AED 9.49 billion as of 31 December 2022 from AED 9.93 billion in 2021.
Egypt fintech firm MNT-Halan securing $400 million in new finance | Reuters
Egypt fintech firm MNT-Halan securing $400 million in new finance | Reuters
Egyptian microfinance lending and payments company MNT-Halan is securing $400 million in new equity and finance, bringing its valuation to more than $1 billion, the company said in a statement on Wednesday.
The investments include an equity stake of at least 20% of MNT-Halan worth more than $200 million taken by private equity firm Chimera Abu Dhabi. Another $60 million in primary capital is being secured from international investors, the statement said.
These investors include the International Finance Corporation (IFC), according to data on the IFC's website.
MNT-Halan obtained $140 million in financing by securitising part of its loan book, the statement said.
MNT-Halan provides small- and micro-business lending, payments, consumer finance and e-commerce, the company said. It has more than 5 million customers in Egypt, of which 3.5 million are financial clients and 2 million are borrowers. About 1.3 million of the customers are active monthly.
Egyptian microfinance lending and payments company MNT-Halan is securing $400 million in new equity and finance, bringing its valuation to more than $1 billion, the company said in a statement on Wednesday.
The investments include an equity stake of at least 20% of MNT-Halan worth more than $200 million taken by private equity firm Chimera Abu Dhabi. Another $60 million in primary capital is being secured from international investors, the statement said.
These investors include the International Finance Corporation (IFC), according to data on the IFC's website.
MNT-Halan obtained $140 million in financing by securitising part of its loan book, the statement said.
MNT-Halan provides small- and micro-business lending, payments, consumer finance and e-commerce, the company said. It has more than 5 million customers in Egypt, of which 3.5 million are financial clients and 2 million are borrowers. About 1.3 million of the customers are active monthly.
Saudi National Bank FY profit jumps nearly 47% on higher income | Reuters
Saudi National Bank FY profit jumps nearly 47% on higher income | Reuters
Saudi National Bank (1180.SE), the kingdom's biggest bank, reported an almost 47% jump in 2022 net profit on Wednesday, boosted by higher operating income and lower impairments.
The bank, which last year acquired a 9.88% stake in Credit Suisse Group (CSGN.S), made a net profit of 18.58 billion riyals ($4.95 billion), up 46.7% from the previous year.
That beat median analyst estimates of 18.2 billion riyals, according to Refinitiv data.
The bank made a net profit of 4.76 billion riyals in the fourth quarter, according to Reuters calculations. That was slightly above analyst estimates of 4.68 billion riyals, Refinitiv data showed.
Operating income grew 16.9% in 2022, the bank said in a filing to the Tadawul exchange, while net impairment charges for expected credit losses decreased 57.5% to 1.69 billion riyals. Fee income from banking services grew 21.1%.
Saudi National Bank (1180.SE), the kingdom's biggest bank, reported an almost 47% jump in 2022 net profit on Wednesday, boosted by higher operating income and lower impairments.
The bank, which last year acquired a 9.88% stake in Credit Suisse Group (CSGN.S), made a net profit of 18.58 billion riyals ($4.95 billion), up 46.7% from the previous year.
That beat median analyst estimates of 18.2 billion riyals, according to Refinitiv data.
The bank made a net profit of 4.76 billion riyals in the fourth quarter, according to Reuters calculations. That was slightly above analyst estimates of 4.68 billion riyals, Refinitiv data showed.
Operating income grew 16.9% in 2022, the bank said in a filing to the Tadawul exchange, while net impairment charges for expected credit losses decreased 57.5% to 1.69 billion riyals. Fee income from banking services grew 21.1%.
Most Gulf markets rebound on easing inflation; #Saudi stocks fall | Reuters
Most Gulf markets rebound on easing inflation; Saudi stocks fall | Reuters
Most Gulf bourses rose in early trade on Wednesday, tracking crude oil prices and global equities as a slowdown in U.S. labour costs lifted expectations that the Federal Reserve might hint later in the day at ending interest rate hikes.
The U.S. employment cost index rose 1.0%, less than expected, in the fourth quarter. That was the smallest advance since the fourth quarter of 2021 and followed a 1.2% gain in the July-September period.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
Crude oil, a key contributor to Gulf economies, drifted higher on Wednesday, with Brent crude rising $0.34, or 0.40%, to $85.82 a barrel by 0820 GMT.
Banking and petrochemical stocks helped the Qatari Stock index (.QSI) to rise 0.8% and snap two sessions of losses.
Petrochemical maker Industries Qatar (IQCD.QA) gained 1.6%, while Gulf's largest bank, Qatar National Bank (QNBK.QA), added 0.8%.
Abu Dhabi's benchmark index (.FTFADGI) rose 0.6%, extending gains to a third straight session, with the UAE's largest lender, First Abu Dhabi Bank (FAB.AD), rising 2.2%.
The UAE's third-largest lender, Abu Dhabi Commercial Bank (ADCB.AD), surged 4.6% on its best day since late November, after achieving 23% growth in both annual and fourth-quarter each net profit.
The lender also raised its annual dividend by 48.6% to AED 0.55 per share.
Mashreq Bank jumped 15%, its biggest intraday gain since late September, after the lender proposed AED 9 per share as its annual cash dividend, up 800% from last year.
Dubai's benchmark index (.DFMGI) edged 0.7% higher, supported by a 2.4% gain in toll operator Salik Company (SALIK.DU), while blue-chip developer Emaar Properties (EMAR.DU) rose 1.4%
Saudi Arabia's benchmark stock index (.TASI), however, slipped 0.2%, pressured by a 0.5% drop in oil behemoth Saudi Aramco (2222.SE), while Riyad Bank (1010.SE) decreased 0.7%.
Among other losers, Saudi Industrial Investment Group (2250.SE) tumbled 4.1% after the firm posted a fourth-quarter loss driven by lower selling prices and scheduled maintenance for Saudi Polymer Company.
Separately, the International Monetary Fund has revised its 2023 growth forecast for Saudi Arabia to 2.6%, 1.1 percentage points below its October projection.
Most Gulf bourses rose in early trade on Wednesday, tracking crude oil prices and global equities as a slowdown in U.S. labour costs lifted expectations that the Federal Reserve might hint later in the day at ending interest rate hikes.
The U.S. employment cost index rose 1.0%, less than expected, in the fourth quarter. That was the smallest advance since the fourth quarter of 2021 and followed a 1.2% gain in the July-September period.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
Crude oil, a key contributor to Gulf economies, drifted higher on Wednesday, with Brent crude rising $0.34, or 0.40%, to $85.82 a barrel by 0820 GMT.
Banking and petrochemical stocks helped the Qatari Stock index (.QSI) to rise 0.8% and snap two sessions of losses.
Petrochemical maker Industries Qatar (IQCD.QA) gained 1.6%, while Gulf's largest bank, Qatar National Bank (QNBK.QA), added 0.8%.
Abu Dhabi's benchmark index (.FTFADGI) rose 0.6%, extending gains to a third straight session, with the UAE's largest lender, First Abu Dhabi Bank (FAB.AD), rising 2.2%.
The UAE's third-largest lender, Abu Dhabi Commercial Bank (ADCB.AD), surged 4.6% on its best day since late November, after achieving 23% growth in both annual and fourth-quarter each net profit.
The lender also raised its annual dividend by 48.6% to AED 0.55 per share.
Mashreq Bank jumped 15%, its biggest intraday gain since late September, after the lender proposed AED 9 per share as its annual cash dividend, up 800% from last year.
Dubai's benchmark index (.DFMGI) edged 0.7% higher, supported by a 2.4% gain in toll operator Salik Company (SALIK.DU), while blue-chip developer Emaar Properties (EMAR.DU) rose 1.4%
Saudi Arabia's benchmark stock index (.TASI), however, slipped 0.2%, pressured by a 0.5% drop in oil behemoth Saudi Aramco (2222.SE), while Riyad Bank (1010.SE) decreased 0.7%.
Among other losers, Saudi Industrial Investment Group (2250.SE) tumbled 4.1% after the firm posted a fourth-quarter loss driven by lower selling prices and scheduled maintenance for Saudi Polymer Company.
Separately, the International Monetary Fund has revised its 2023 growth forecast for Saudi Arabia to 2.6%, 1.1 percentage points below its October projection.
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