Saudi Arabia posts budget surplus of $27.68 bln in 2022 | Reuters
Saudi Arabia recorded a budget surplus of 103.9 billion riyals ($27.68 billion) in 2022, beating its own estimates, as higher oil prices boosted government revenues by 31%, according to finance ministry data.
The world's top oil exporter recorded real GDP growth of 8.7% in 2022 leading to the Gulf state's first budget surplus in almost a decade.
It had previously estimated a budget surplus of 102 billion riyals, or about 2.6% of GDP, for 2022, but is projecting a narrower surplus for 2023.
Saudi Arabia's total revenues in 2022 hit nearly 1.27 trillion riyals, up 31% over 2021, and slightly higher than estimated. Oil revenues in 2022 totaled about 857.3 billion riyals, up 52% from the previous year.
Thursday 9 March 2023
#Dubai Housing Boom Shows No Sign of Slowing as Prices Jump Again - Bloomberg
Dubai Housing Boom Shows No Sign of Slowing as Prices Jump Again - Bloomberg
For anyone hoping that Dubai’s red hot property market would start to cool this year, there’s bad news — it’s getting worse.
The average annual rent for a villa, or family home, in the emirate jumped 26% in the year through to February to reach 295,436 dirhams ($80,436), according to real estate adviser CBRE Group Inc. Average apartment rents, meanwhile, soared 28% to 99,737 dirhams.
The average sale price for villas rose 14%, while apartment prices rose 11% through February, according to CBRE.
Still, the jump in prices isn’t deterring investors or property developers. The number of transactions in February soared 43.9% to 8,515. Sales were mostly underpinned by developers starting new projects and the return of so-called off-plan sales when homes are sold ahead of construction. The number of these type of properties surged 78.1% in February, while secondary market sales rose 18.8%.
For anyone hoping that Dubai’s red hot property market would start to cool this year, there’s bad news — it’s getting worse.
The average annual rent for a villa, or family home, in the emirate jumped 26% in the year through to February to reach 295,436 dirhams ($80,436), according to real estate adviser CBRE Group Inc. Average apartment rents, meanwhile, soared 28% to 99,737 dirhams.
The average sale price for villas rose 14%, while apartment prices rose 11% through February, according to CBRE.
Still, the jump in prices isn’t deterring investors or property developers. The number of transactions in February soared 43.9% to 8,515. Sales were mostly underpinned by developers starting new projects and the return of so-called off-plan sales when homes are sold ahead of construction. The number of these type of properties surged 78.1% in February, while secondary market sales rose 18.8%.
#AbuDhabi's Sheikh Tahnoon to Lead ADIA, Sheikh Mansoor to Chair Mubadala - Bloomberg
Abu Dhabi's Sheikh Tahnoon to Lead ADIA, Sheikh Mansoor to Chair Mubadala - Bloomberg
Sheikh Tahnoon bin Zayed Al Nahyan will become chairman of Abu Dhabi’s $790 billion sovereign wealth fund, consolidating his power beyond roles that include the United Arab Emirates’ national security adviser and head of the country’s largest bank.
In a reshuffle announced by the Supreme Council for Financial and Economic Affairs on Thursday, Sheikh Tahnoon will become chairman of Abu Dhabi Investment Authority, while the emirate’s $272 billion Mubadala Investment Co. will be lead by his brother Sheikh Mansour bin Zayed Al Nahyan.
Sheikh Tahnoon’s appointment puts him at the helm of one of the world’s largest sovereign wealth funds. The move comes as Abu Dhabi — a city that’s among the few globally to manage over $1 trillion in sovereign wealth capital — is seeking to extend its influence on the world stage.
Sheikh Tahnoon — a black belt in jiu-jitsu — is already one of Abu Dhabi’s most influential figures as chairman of its smaller wealth fund ADQ, the country’s biggest lender First Abu Dhabi Bank PJSC and private investment firm Royal Group. He also oversees the sprawling business empire of International Holding Co. whose spectacular market value surge has drawn scrutiny and failed to entice international investors, some of whom privately expressed concerns about a lack of transparency.
Sheikh Tahnoon bin Zayed Al Nahyan will become chairman of Abu Dhabi’s $790 billion sovereign wealth fund, consolidating his power beyond roles that include the United Arab Emirates’ national security adviser and head of the country’s largest bank.
In a reshuffle announced by the Supreme Council for Financial and Economic Affairs on Thursday, Sheikh Tahnoon will become chairman of Abu Dhabi Investment Authority, while the emirate’s $272 billion Mubadala Investment Co. will be lead by his brother Sheikh Mansour bin Zayed Al Nahyan.
Sheikh Tahnoon’s appointment puts him at the helm of one of the world’s largest sovereign wealth funds. The move comes as Abu Dhabi — a city that’s among the few globally to manage over $1 trillion in sovereign wealth capital — is seeking to extend its influence on the world stage.
Sheikh Tahnoon — a black belt in jiu-jitsu — is already one of Abu Dhabi’s most influential figures as chairman of its smaller wealth fund ADQ, the country’s biggest lender First Abu Dhabi Bank PJSC and private investment firm Royal Group. He also oversees the sprawling business empire of International Holding Co. whose spectacular market value surge has drawn scrutiny and failed to entice international investors, some of whom privately expressed concerns about a lack of transparency.
Mideast Stocks: Gulf stocks subdued on hawkish Fed chief Powell; #Saudi gains
Mideast Stocks: Gulf stocks subdued on hawkish Fed chief Powell; Saudi gains
Gulf equities were subdued on Thursday after the U.S. Federal Reserve chief's hawkish comments on higher and faster interest rate hikes dampened investor sentiment, but strong economic data propelled Saudi Arabia's index to a higher close.
U.S. Federal Reserve chief Jerome Powell had stuck to his message of higher and potentially faster interest rate hikes during a hearing on Wednesday. Aggressive rate hikes may pose challenges for the Gulf economy as most Gulf Cooperation Council (GCC) countries have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing them to any monetary tightening.
Oil prices, which are highly correlated to Gulf financial market moves, were mostly trading on the back foot after tepid growth data from China and on worries that higher interest rates in the United States could slow global economic growth, squeezing oil demand.
Saudi Arabia's benchmark stock index gained 0.5%, boosted by gains in almost all the sectors with financial and energy shares, with Al Rajhi Bank advancing 1.4% while index heavyweight and state oil giant Saudi Aramco, which will report its annual earnings on Sunday, was up 0.9%. The Saudi economy grew 5.5% year-on-year in the fourth quarter of 2022, slightly more than expected, as non-oil activity boosted overall growth.
The strong economic data has improved sentiment despite the uncertainty surrounding around Powell’s testimony and volatile oil prices, said Ahmed Negm, Head of Market Research MENA at XS.com.
In Abu Dhabi, the benchmark index dropped 0.8%, its third straight day of decline, weighed down by a 3.3% dive in top lender First Abu Dhabi Bank, its biggest intraday fall in more than a month. Elsewhere, Bank of Sharjah is set to raise $500 million for a sale of senior unsecured five-year bonds. Stock was down 2.5%.
Dubai's main share index also extended losses for a third consecutive session to close 0.5% lower, pressured by a 2.3% retreat in its biggest lender Emirates NBD and a 1.4% decrease in blue-chip developer Emaar Properties. The Qatari benchmark index declined 0.3%, snapping a six-day rally but ended the week with a 1.1% gain.
Qatar National Bank, the Gulf's biggest bank by assets falling 1.4% and Qatar Navigation (Milaha) shedding 2.6%.
Outside the Gulf, Egypt's blue-chip index, closed 0.9% higher, ending a five-session losing streak, with Commercial International Bank Egypt gaining 1.4%.
U.S. Federal Reserve chief Jerome Powell had stuck to his message of higher and potentially faster interest rate hikes during a hearing on Wednesday. Aggressive rate hikes may pose challenges for the Gulf economy as most Gulf Cooperation Council (GCC) countries have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing them to any monetary tightening.
Oil prices, which are highly correlated to Gulf financial market moves, were mostly trading on the back foot after tepid growth data from China and on worries that higher interest rates in the United States could slow global economic growth, squeezing oil demand.
Saudi Arabia's benchmark stock index gained 0.5%, boosted by gains in almost all the sectors with financial and energy shares, with Al Rajhi Bank advancing 1.4% while index heavyweight and state oil giant Saudi Aramco, which will report its annual earnings on Sunday, was up 0.9%. The Saudi economy grew 5.5% year-on-year in the fourth quarter of 2022, slightly more than expected, as non-oil activity boosted overall growth.
The strong economic data has improved sentiment despite the uncertainty surrounding around Powell’s testimony and volatile oil prices, said Ahmed Negm, Head of Market Research MENA at XS.com.
In Abu Dhabi, the benchmark index dropped 0.8%, its third straight day of decline, weighed down by a 3.3% dive in top lender First Abu Dhabi Bank, its biggest intraday fall in more than a month. Elsewhere, Bank of Sharjah is set to raise $500 million for a sale of senior unsecured five-year bonds. Stock was down 2.5%.
Dubai's main share index also extended losses for a third consecutive session to close 0.5% lower, pressured by a 2.3% retreat in its biggest lender Emirates NBD and a 1.4% decrease in blue-chip developer Emaar Properties. The Qatari benchmark index declined 0.3%, snapping a six-day rally but ended the week with a 1.1% gain.
Qatar National Bank, the Gulf's biggest bank by assets falling 1.4% and Qatar Navigation (Milaha) shedding 2.6%.
Outside the Gulf, Egypt's blue-chip index, closed 0.9% higher, ending a five-session losing streak, with Commercial International Bank Egypt gaining 1.4%.
ADIA Said to Near Buying $500 Million Stake in India’s Lenskart - Bloomberg
ADIA Said to Near Buying $500 Million Stake in India’s Lenskart - Bloomberg
Abu Dhabi Investment Authority is nearing a deal to acquire a stake in Indian eyewear startup Lenskart Solutions Pvt. for about $500 million, according to people familiar with the matter.
The Middle Eastern sovereign wealth fund is finalizing an agreement to buy a mix of existing Lenskart shares and new equity, the people said, asking not to be identified as the information is not public. The deal, which would value Lenskart at more than $4 billion, may be announced as early as this week, the people said.
Lenskart is set to close its funding round amid a global rout for tech companies that’s prompted layoffs in the thousands, depressed investment activity and shaved billions off the valuations of once high-flying startups. The company has grown into India’s largest optical brand and is backed by KKR & Co., SoftBank Group Corp., Temasek Holdings Pte and PremjiInvest, among others.
Though discussions are advanced, details could still change, the people said. Representatives for ADIA and Lenskart declined to comment.
Lenskart, which uses technology and supply chain automation to directly sell glasses and contact lenses to consumers, was co-founded in 2010 by Peyush Bansal, who is also its chief executive officer. The company agreed in June to buy a majority stake in Japan’s Owndays Inc. at a valuation of about $400 million, Bloomberg News has reported.
The company is profitable and is planning an initial public offering within 48 months, Bansal told Bloomberg Television in July.
Abu Dhabi Investment Authority is nearing a deal to acquire a stake in Indian eyewear startup Lenskart Solutions Pvt. for about $500 million, according to people familiar with the matter.
The Middle Eastern sovereign wealth fund is finalizing an agreement to buy a mix of existing Lenskart shares and new equity, the people said, asking not to be identified as the information is not public. The deal, which would value Lenskart at more than $4 billion, may be announced as early as this week, the people said.
Lenskart is set to close its funding round amid a global rout for tech companies that’s prompted layoffs in the thousands, depressed investment activity and shaved billions off the valuations of once high-flying startups. The company has grown into India’s largest optical brand and is backed by KKR & Co., SoftBank Group Corp., Temasek Holdings Pte and PremjiInvest, among others.
Though discussions are advanced, details could still change, the people said. Representatives for ADIA and Lenskart declined to comment.
Lenskart, which uses technology and supply chain automation to directly sell glasses and contact lenses to consumers, was co-founded in 2010 by Peyush Bansal, who is also its chief executive officer. The company agreed in June to buy a majority stake in Japan’s Owndays Inc. at a valuation of about $400 million, Bloomberg News has reported.
The company is profitable and is planning an initial public offering within 48 months, Bansal told Bloomberg Television in July.
Swvl Stock Price Fall Another Relic of SPAC Era - Bloomberg
Swvl Stock Price Fall Another Relic of SPAC Era - Bloomberg
In July 2021 the world’s tallest tower, the Burj Khalifa in Dubai, was briefly lit up in brilliant red, with animated electronic text scrolling up its height announcing “the Middle East’s first $1.5 billion unicorn to list on Nasdaq.” The splashy marketing was for Swvl, a company with lofty ambitions to become a hybrid of a ride-hailing app and bus service in cities across the globe.
Twenty months later, the Dubai-based company’s shares have dropped more than 99%. Its roughly $9 million market value is a shadow of the billion-dollar-plus valuation that once gave it so-called unicorn status. A deal to buy Turkish transit company Volt Lines largely using Swvl shares fell apart in January. Once trumpeted by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum as a symbol of the Middle East’s startup spirit, Swvl Holdings Corp. has become another example of tech-sector overreach—and how quickly investor money dried up once superlow interest rates went away. It also shows the perils of trying to build a business that straddles emerging markets vulnerable to currency shocks as the dollar rises.
Swvl was co-founded in Cairo in 2017 by former Rocket Internet SE executive Mostafa Kandil along with Ahmed Sabbah and Mahmoud Nouh. The trio started the company as a solution for commuters who didn’t want to rely on public transit but couldn’t pay a premium for ride-share services. Their idea: buses and vans running along routes that users could book a ride on with an app.
The early days were promising. Swvl raised almost $100 million over several rounds from Beco Capital, VNV Global, Digame Investment, Armistice Capital and other investors. The first one, putting in $500,000, was Dubai-based Careem, a ride-hailing company that Uber Technologies Inc. later acquired.
In 2019, Swvl opened an office in Dubai to spearhead its international expansion, though it kept its technology and operational base in Egypt. It rented space in an upscale building whose other tenants include BMW and Rolls-Royce. Along the way, Kandil’s co-founders departed. (Nouh left to start a business-to-business marketplace company, Capiter, that’s now restructuring; Sabbah, to co-found the fintech startup Telda.)
In July 2021 the world’s tallest tower, the Burj Khalifa in Dubai, was briefly lit up in brilliant red, with animated electronic text scrolling up its height announcing “the Middle East’s first $1.5 billion unicorn to list on Nasdaq.” The splashy marketing was for Swvl, a company with lofty ambitions to become a hybrid of a ride-hailing app and bus service in cities across the globe.
Twenty months later, the Dubai-based company’s shares have dropped more than 99%. Its roughly $9 million market value is a shadow of the billion-dollar-plus valuation that once gave it so-called unicorn status. A deal to buy Turkish transit company Volt Lines largely using Swvl shares fell apart in January. Once trumpeted by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum as a symbol of the Middle East’s startup spirit, Swvl Holdings Corp. has become another example of tech-sector overreach—and how quickly investor money dried up once superlow interest rates went away. It also shows the perils of trying to build a business that straddles emerging markets vulnerable to currency shocks as the dollar rises.
Swvl was co-founded in Cairo in 2017 by former Rocket Internet SE executive Mostafa Kandil along with Ahmed Sabbah and Mahmoud Nouh. The trio started the company as a solution for commuters who didn’t want to rely on public transit but couldn’t pay a premium for ride-share services. Their idea: buses and vans running along routes that users could book a ride on with an app.
The early days were promising. Swvl raised almost $100 million over several rounds from Beco Capital, VNV Global, Digame Investment, Armistice Capital and other investors. The first one, putting in $500,000, was Dubai-based Careem, a ride-hailing company that Uber Technologies Inc. later acquired.
In 2019, Swvl opened an office in Dubai to spearhead its international expansion, though it kept its technology and operational base in Egypt. It rented space in an upscale building whose other tenants include BMW and Rolls-Royce. Along the way, Kandil’s co-founders departed. (Nouh left to start a business-to-business marketplace company, Capiter, that’s now restructuring; Sabbah, to co-found the fintech startup Telda.)
#Dubai Money Exchange Firm Al Ansari to Sell 10% Stake in IPO - Bloomberg
Dubai Money Exchange Firm Al Ansari to Sell 10% Stake in IPO - Bloomberg
The family owners of remittances and money exchange firm Al Ansari Financial Services plan to sell a 10% stake in its Dubai initial public offering, marking the emirate’s first listing this year.
Al Ansari Holding LLC will offer 750 million shares in the listing, according to a statement on Thursday. Al Ansari will take orders from retail investors from March 16 to March 23, and institutional investors until March 24. The listing is slated for on or around April 6.
The IPO is set to be the first in Dubai this year after the city recorded the largest offering in the Middle East in 2022 when Dubai Electricity & Water Authority PJSC’s raised $6.1 billion. In total, IPOs in the city raised a combined $8.5 billion last year in a privatization drive to increase trading volumes and catch up with listing activity in neighboring Abu Dhabi and Riyadh.
The region has been a bright spot for IPOs globally after high oil prices buoyed stock markets and drove investor inflows. Last week, Abu Dhabi National Oil Co. pulled off the world’s biggest listing so far this year when it raised $2.5 billion from the IPO of its gas business.
The family owners of remittances and money exchange firm Al Ansari Financial Services plan to sell a 10% stake in its Dubai initial public offering, marking the emirate’s first listing this year.
Al Ansari Holding LLC will offer 750 million shares in the listing, according to a statement on Thursday. Al Ansari will take orders from retail investors from March 16 to March 23, and institutional investors until March 24. The listing is slated for on or around April 6.
The IPO is set to be the first in Dubai this year after the city recorded the largest offering in the Middle East in 2022 when Dubai Electricity & Water Authority PJSC’s raised $6.1 billion. In total, IPOs in the city raised a combined $8.5 billion last year in a privatization drive to increase trading volumes and catch up with listing activity in neighboring Abu Dhabi and Riyadh.
The region has been a bright spot for IPOs globally after high oil prices buoyed stock markets and drove investor inflows. Last week, Abu Dhabi National Oil Co. pulled off the world’s biggest listing so far this year when it raised $2.5 billion from the IPO of its gas business.
#SaudiArabia Q4 GDP up 5.5% - government agency
Saudi Arabia Q4 GDP up 5.5% - government agency
The Saudi economy grew 5.5% in the fourth quarter of 2022 compared to the prior-year period, estimates from the General Authority for Statistics showed on Thursday, as non-oil activities boosted overall growth.
Non-oil activities grew 6.2% in the quarter year-on-year, outperforming the increase in oil activities which grew 6.1%, according to the agency.
Oil and gas activities accounted for just under 30% of GDP in the fourth quarter as the contribution of non-hydrocarbon sectors continued to gather momentum. Government services activites contributed 15.2% to overall GDP in Q4, the second biggest contributor after oil and gas.
The government has accelerated investments into mega projects and initiatives to progress Vision 2030 goals, its national economic transformation plan, and said the kingdom expects to record non-oil GDP growth of 6% or higher over the next three to five years.
Saudi's non-oil business sector activity soared to its highest level in eight years in February according to a survey, based on a strong increase in demand and an optimistic economic outlook.
Saudi Arabia, the world's top oil exporter, recorded real GDP growth of 8.7% in 2022 as higher oil prices boosted public finances, leading to the Gulf state's first budget surplus in almost a decade.
However, the International Monetary Fund in January lowered Saudi Arabia's GDP growth forecast for 2023 to 2.6% on lower expected output, although it said non-oil growth is expected to remain "robust".
The Saudi economy grew 5.5% in the fourth quarter of 2022 compared to the prior-year period, estimates from the General Authority for Statistics showed on Thursday, as non-oil activities boosted overall growth.
Non-oil activities grew 6.2% in the quarter year-on-year, outperforming the increase in oil activities which grew 6.1%, according to the agency.
Oil and gas activities accounted for just under 30% of GDP in the fourth quarter as the contribution of non-hydrocarbon sectors continued to gather momentum. Government services activites contributed 15.2% to overall GDP in Q4, the second biggest contributor after oil and gas.
The government has accelerated investments into mega projects and initiatives to progress Vision 2030 goals, its national economic transformation plan, and said the kingdom expects to record non-oil GDP growth of 6% or higher over the next three to five years.
Saudi's non-oil business sector activity soared to its highest level in eight years in February according to a survey, based on a strong increase in demand and an optimistic economic outlook.
Saudi Arabia, the world's top oil exporter, recorded real GDP growth of 8.7% in 2022 as higher oil prices boosted public finances, leading to the Gulf state's first budget surplus in almost a decade.
However, the International Monetary Fund in January lowered Saudi Arabia's GDP growth forecast for 2023 to 2.6% on lower expected output, although it said non-oil growth is expected to remain "robust".
#Dubai’s non-oil businesses marked strong performance in February – PMI
Dubai’s non-oil businesses marked strong performance in February – PMI
Business conditions are still improving in Dubai, but at their slowest rate for 12 months as the growth in new orders waned, according to the latest Purchasing Managers’ Index (PMI).
The headline PMI for last month was 54.1, down from 54.5 in January, and while anything above 50.0 indicates growth, it was at its slowest late since February 2022.
The S&P Global Dubai PMI report for the month showed that four of the five sub-components of the PMI had a downward influence in February, partly offset by a mark-up in the output index, with the construction sector registering its strongest upturn since June 2019.
The output index reached a four-month high, showing a robust expansion in non-oil business activity in February, the report said, with firms that reported output increasing attributing it to new clients and ongoing projects.
The overall fall in the PMI largely stemmed from a slowdown in new business growth. In fact, new orders rose to the least extent since the beginning of 2022, though the rate of growth was strong overall.
“While many companies continued to see demand increase, others reported that competitive pressures had weighed on sales,” the report said.
Business conditions are still improving in Dubai, but at their slowest rate for 12 months as the growth in new orders waned, according to the latest Purchasing Managers’ Index (PMI).
The headline PMI for last month was 54.1, down from 54.5 in January, and while anything above 50.0 indicates growth, it was at its slowest late since February 2022.
The S&P Global Dubai PMI report for the month showed that four of the five sub-components of the PMI had a downward influence in February, partly offset by a mark-up in the output index, with the construction sector registering its strongest upturn since June 2019.
The output index reached a four-month high, showing a robust expansion in non-oil business activity in February, the report said, with firms that reported output increasing attributing it to new clients and ongoing projects.
The overall fall in the PMI largely stemmed from a slowdown in new business growth. In fact, new orders rose to the least extent since the beginning of 2022, though the rate of growth was strong overall.
“While many companies continued to see demand increase, others reported that competitive pressures had weighed on sales,” the report said.
Gulf stocks mixed on rate hike jitters; #Saudi up on economic data | Reuters
Gulf stocks mixed on rate hike jitters; Saudi up on economic data | Reuters
Equity markets in the Gulf opened mixed on Thursday after the U.S. Federal Reserve Chair's hawkish stance on higher and faster interest rates dampened investor sentiment.
Aggressive rate hikes may pose challenges for the Gulf economy as most Gulf Cooperation Council (GCC) countries have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing them to any monetary tightening.
Gulf markets, which are highly sensitive to changes in oil prices, were mostly trading on the back foot after tepid growth data from China and on worries that higher interest rates in the United States could slow global economic growth, squeezing oil demand.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.7%, its third straight day of decline, dragged down by a 2.9% slide in top lender First Abu Dhabi Bank (FAB.AD) and 0.6% retreat in conglomerate International Holding Company (IHC.AD).
Dubai's main share index (.DFMGI) also extended losses for a third consecutive session to open slightly lower at 0.1%, led by a 0.5% retreat in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% fall in telecoms operator Emirates Integrated Telecommunications (DU.DU).
Saudi Arabia's benchmark stock index (.TASI) gained 0.5%.
The index was boosted by gains in finiancial and real estate stocks, with Al Rajhi Bank (1120.SE) increasing 1.1% and real estate developer Retal Urban Development (4322.SE) advancing 0.5%.
State oil giant Saudi Aramco (2222.SE), which will report its annual earnings on Sunday, was down 0.3%.
Among other stocks, Thimar Development Holding (4160.SE) surged nearly 10% after Riyadh's Commercial Court approved to amend the company's financial reorganization proposal.
Meanwhile, Saudi Arabia's economy grew 5.5% year-on-year in the fourth quarter of 2022, slightly more than the 5.4% estimate, as non-oil activity boosted overall growth.
The Qatari benchmark index (.QSI) also rose 0.3%, its seventh positive session in a row, helped by banking stocks including Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA), which gained 2% and 1%, respectively.
Equity markets in the Gulf opened mixed on Thursday after the U.S. Federal Reserve Chair's hawkish stance on higher and faster interest rates dampened investor sentiment.
Aggressive rate hikes may pose challenges for the Gulf economy as most Gulf Cooperation Council (GCC) countries have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing them to any monetary tightening.
Gulf markets, which are highly sensitive to changes in oil prices, were mostly trading on the back foot after tepid growth data from China and on worries that higher interest rates in the United States could slow global economic growth, squeezing oil demand.
In Abu Dhabi, the benchmark index (.FTFADGI) slipped 0.7%, its third straight day of decline, dragged down by a 2.9% slide in top lender First Abu Dhabi Bank (FAB.AD) and 0.6% retreat in conglomerate International Holding Company (IHC.AD).
Dubai's main share index (.DFMGI) also extended losses for a third consecutive session to open slightly lower at 0.1%, led by a 0.5% retreat in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% fall in telecoms operator Emirates Integrated Telecommunications (DU.DU).
Saudi Arabia's benchmark stock index (.TASI) gained 0.5%.
The index was boosted by gains in finiancial and real estate stocks, with Al Rajhi Bank (1120.SE) increasing 1.1% and real estate developer Retal Urban Development (4322.SE) advancing 0.5%.
State oil giant Saudi Aramco (2222.SE), which will report its annual earnings on Sunday, was down 0.3%.
Among other stocks, Thimar Development Holding (4160.SE) surged nearly 10% after Riyadh's Commercial Court approved to amend the company's financial reorganization proposal.
Meanwhile, Saudi Arabia's economy grew 5.5% year-on-year in the fourth quarter of 2022, slightly more than the 5.4% estimate, as non-oil activity boosted overall growth.
The Qatari benchmark index (.QSI) also rose 0.3%, its seventh positive session in a row, helped by banking stocks including Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA), which gained 2% and 1%, respectively.