#SaudiArabia Is Investing $38 Billion to Become a Video-Game Hub - Bloomberg

Saudi Arabia Is Investing $38 Billion to Become a Video-Game Hub - Bloomberg

The Saudi Arabian government is betting $38 billion on the country’s potential to become the next hub for the video-game industry.

As part of its strategy to diversify its economy away from oil, Saudi Arabia, through its Public Investment Fund, wants to become a big player in the $184 billion global gaming market. After focusing initially on the esports industry, which has been struggling, the fund’s subsidiary, Savvy Gaming Group, is now looking to develop, publish and acquire top-tier games and support a gaming industry in Riyadh.

“We are now more of an esports company than a games company,” Savvy Chief Executive Officer Brian Ward told Bloomberg News in an interview at the Game Developers Conference. “What we’re doing this year is focusing more on game publishing and development.”

Savvy’s plans are ambitious in a crowded market where longstanding players like Electronic Arts Inc. are laying off employees. But the fund has already made multibillion-dollar investments in gaming companies like Nintendo Co., Tencent Holdings Ltd. and Activision Blizzard Inc. Ward plans to leverage those connections to build Savvy’s business.

OPEC+ Wants to Make Oil Speculators Think Twice With Shock Cut - Bloomberg

OPEC+ Wants to Make Oil Speculators Think Twice With Shock Cut - Bloomberg

The surprise OPEC+ production cut was aimed squarely at one audience: speculators betting that oil prices would fall.

It’s a return to the tactic first used by Saudi Energy Minister Prince Abdulaziz bin Salman in 2020, when he famously said he wants “the guys in the trading floors to be as jumpy as possible” and vowed that “whoever gambles on this market will be ouching like hell.”

The new attack on short sellers was successful. Markets were wrong-footed and oil futures surged as much as 8%, repricing assets from equities to bonds. Yet OPEC+ also caught consumers and the global economy in the crossfire, spurring concerns about inflation and prompting bets on further interest rate hikes.

The Organization of Petroleum Exporting Countries and its allies began to see the need for a change in oil policy on March 20, according to people familiar with the matter, when Brent crude slid to a 15-month low near $70 a barrel as a banking crisis threatened to hobble the economy. The Saudis reflected that short sellers were due a reminder of the pain OPEC+ can still inflict on them, the people said.

#Saudi Electricity to raise $2 bln with dual-tranche sukuk with green tranche | Reuters

Saudi Electricity to raise $2 bln with dual-tranche sukuk with green tranche | Reuters

Saudi Electricity Company (5110.SE), majority owned by the sovereign Public Investment Fund, is set to raise $2 billion from a sale of dual-tranche Islamic bonds, a bank document on the deal showed on Monday.

The company's offer is made up of 10-year green sukuk and 30-year conventional Islamic paper, the document showed.

Orders for the 10-year tranche topped $9.2 billion and the 30-year tranche drew more than $6.2 billion in demand, both excluding interest from joint lead managers, the document said.

The kingdom's electric transmission monopoly launched $1.2 billion in 10-year green sukuk at a spread of 120 basis points (bps) over U.S. Treasuries and $800 million in 30-year conventional sukuk at 205 bps over UST.

The spreads were tightened after higher-than-expected demand of $15.4 billion for both tranches. Initial guidance was for a spread of around 165 bps over UST for the 10-year notes and around 240 bps over the same benchmark for the 30-year Islamic bonds.

Analysis: #UAE plans long-term economic ties with Israel despite political strains | Reuters

Analysis: UAE plans long-term economic ties with Israel despite political strains | Reuters

Israeli President Isaac Herzog meets with Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed al-Nahyan
in Abu Dhabi, United Arab Emirates January 30, 2022. Mohamed Al Hammadi/Ministry of Presidential Affairs/WAM/Handout via REUTERS

The United Arab Emirates' commitment to a long-term strategic relationship with Israel should survive political turbulence, analysts say, after one of the most right-wing governing coalitions in Israel's history prompted widespread anger. A series of recent moves and comments by Prime Minister Benjamin Netanyahu's government has infuriated the public in much of Arab world, and drew condemnation from the UAE, including over Israeli settlement policy in the occupied West Bank.

However, economic and trade cooperation - a key driver of the UAE's 2020 normalisation of relations with Israel which broke with decades of Arab policy towards the Palestinian cause - has deepened.

On Saturday a Comprehensive Economic Partnership Agreement (CEPA) between the countries entered into effect, removing or reducing tariffs on more than 96% of products, UAE state news agency WAM said.

Signed in May 2022, and deemed a "historic moment" by the UAE ambassador to Israel, it is Israel's first free trade agreement with an Arab state.

Analysis: #Saudi crown prince acts to realign Mideast dynamics amid concern over US support | Reuters

Analysis: Saudi crown prince acts to realign Mideast dynamics amid concern over US support | Reuters

Saudi Arabia's unpredictable crown prince is pushing hard to realign Middle East dynamics, engaging with old foes and orchestrating OPEC oil cuts like the ones on Sunday which took the global market by surprise.

Crown Prince Mohammed Bin Salman, known as MbS, has signalled he is prepared to go it alone without the help of the United States to pursue Saudi interests, whether it means re-establishing ties with U.S. adversaries like Iran, or removing supplies from the oil market and angering consumers.

The strategy is designed to create conditions enabling Saudi Arabia to focus on MbS's vast economic transformation plan, Vision 2030, in which he has poured hundreds of billions of dollars, hoping it will open the conservative kingdom to business and tourism amid rising regional competition.

The strategic shift began in 2019 after the devastating attacks on Saudi Aramco's oil facilities - after which Riyadh questioned U.S. security commitments to the region - and gained momentum after Israeli attacks on Iranian targets, analysts say.

Oil surges as OPEC+ surprise output target cuts shake markets | Reuters

Oil surges as OPEC+ surprise output target cuts shake markets | Reuters

Oil prices jumped by $5 on Monday for the biggest daily rise in nearly a year after a OPEC+ jolted markets with plans to cut more production.

Brent crude was up $5.31, or 6.7%, at $85.20 a barrel by 1410 GMT after touching its highest for a month at $86.44.

West Texas Intermediate crude U.S. was up $5.10, or 6.7%, at $80.77 after hitting its highest since late January.

The Organization of the Petroleum Exporting Countries and allies including Russia shook markets with Sunday's announcement that it is cutting its production target by a further 1.16 million barrels per day (bpd).

Mideast Stocks: Most Gulf markets gain as oil surges on surprise OPEC+ output cuts

Mideast Stocks: Most Gulf markets gain as oil surges on surprise OPEC+ output cuts

Most stock markets in the Gulf ended higher on Monday tracking a rise in oil prices after a surprise announcement by OPEC+ to cut more production jolted markets. The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production target cuts of about 1.16 million barrels per day (bpd) on Sunday.

As a result, Goldman Sachs lowered its end-2023 production forecast for OPEC+ by 1.1 million bpd and raised its Brent price forecasts to $95 and $100 a barrel for 2023 and 2024, respectively.

Saudi Arabia's benchmark index advanced 1.6%, buoyed by a 5.9% jump in Riyad Bank and a 1.2% increase in Retal Urban Development Co. The kingdom said it would cut output by 500,000 bpd. The Saudi energy ministry said the country's voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market.

According to Ahmed , head of market research MENA at XS.com, reopening of the Chinese economy could also uplift Saudi oil exports despite some lower-than-expected data on Chinese manufacturing. Dubai's main share index finished 0.9% higher, with blue-chip developer Emaar Properties climbing 3.2%. In Abu Dhabi, the index was up 0.8%.

The Qatari index leapt 2%, ending three sessions of losses, with the Gulf's biggest lender Qatar National Bank, which ended 3.7% higher.

Outside the Gulf, Egypt's blue-chip index gained 2.2%, as most of the stocks on the index were in positive territory including Commercial International Bank, which was up 1.9%.

The Central Bank of Egypt (CBE) raised its overnight interest rates by 200 basis points on Thursday following a meeting of its Monetary Policy Committee, saying it aimed to bring high inflation into check. The central bank's decision to raise interest rates could push the banking sector to the upside as profit margin could improve, said .

"The move could also contribute to securing international investors' interest as the institution takes steps to rein in the high inflation."

#Saudi Arabian auto rental firm Lumi hires banks for planned IPO -sources | Reuters

Saudi Arabian auto rental firm Lumi hires banks for planned IPO -sources | Reuters

Saudi Arabian auto rental firm Lumi has hired Saudi Fransi Capital (1050.SE) and EFG Hermes (HRHO.CA) to arrange the sale of 30% of its shares in a planned initial public offering (IPO), two sources told Reuters.

The kingdom's largest travel company Seera (1810.SE), which owns Lumi, won approval for the float from Saudi Arabia's Capital Market Authority (CMA) last week. Companies that secure approval from the CMA have six months to launch their public share sale.

Riyadh-based Lumi Rental Company has appointed Saudi Fransi Capital as financial advisor and joint bookrunner on the transaction, said one of the sources, declining to be named as the matter is not public. EFG Hermes joins Saudi Fransi as joint bookrunner, the source said.

Lumi and Saudi Fransi Capital did not immediately respond to requests for comment when contacted by Reuters on Monday. EFG Hermes declined to comment.

OPEC+ cuts put $100/barrel oil in sight, analysts say | Reuters

OPEC+ cuts put $100/barrel oil in sight, analysts say | Reuters

The OPEC+ group's surprise additional production cuts could push oil prices back towards $100 a barrel, tighten the market and encourage refiners to diversify supplies, analysts and traders said.

Oil prices jumped more than $4 a barrel on Monday after the Organization of the Petroleum Exporting Countries and their allies including Russia announced further production cuts of about 1.16 million barrels per day (bpd) from May through the rest of the year.

The pledges will bring the total volume of cuts by the group known as OPEC+ since November to 3.66 million bpd according to Reuters calculations, equal to 3.7% of global demand.

OPEC+ had been expected to hold output steady this year, having already cut by 2 million bpd in November 2022.

Rystad Energy said it believed the cuts will add to tightness in the oil market and lift prices above $100 a barrel for the rest of year, possibly taking Brent as high as $110 this summer.

Saudi non-oil PMI reaches highest level since 2015 in Feb

Saudi non-oil PMI reaches highest level since 2015 in Feb

Saudi Arabia's non-oil PMI rose to 59.8 points in February, its highest level since 2015, from 58.2 in January, according to the latest monthly chartbook from Jadwa Investment.

The kingdom recorded a current account surplus of 13.6% of GDP in Q4 2022, with tourism earnings contributing strongly, but the surplus was almost fully offset by outflows on the financial account.

The Saudi economy recorded growth of 8.7% in full year 2022, matching Jadwa's forecasts. Looking out into 2023, the Kingdom's economy is expected to grow by 2.8%, as flat oil production is offset by firm non-oil activity, the report said.

Consumer spending in February rose by 10.5% YoY but declined by 7% MoM, with POS transactions increasing by 15% and cash withdrawals edging up by 0.2%.

Kingdom Holding unveils 584% higher profits in 2022, dividends for 2023

Kingdom Holding unveils 584% higher profits in 2022, dividends for 2023

Kingdom Holding Company posted a 583.87% year-on-year (YoY) hike in net profit after Zakat and tax to SAR 6.95 billion in 2022, compared to SAR 1.01 billion.

The Saudi firm generated revenues worth SAR 2.49 billion last year, higher by 65.22% than SAR 1.50 billion in 2021, according to the income statements.

Earnings per share (EPS) jumped to SAR 1.88 during January-December 2022 from SAR 0.27 in 2021.

Dividends for 2023

The board of Kingdom Holding recommended cash dividends distribution from the retained earnings amounting to SAR 1.03 billion for 2023.

The company would pay out SAR 0.28 per share, equivalent to 2.80% of the share nominal value, for 3.70 billion eligible shares.

Meanwhile, the eligibility and payment dates will be announced at a later time.

In the first nine months (9M) of 2022, the Tadawul-listed firm logged net profits after Zakat and tax of SAR 6.70 billion, a 996.02% leap from SAR 611.99 million in 9M-21.

Mideast Stocks: Major Gulf markets rise, tracking oil prices

Mideast Stocks: Major Gulf markets rise, tracking oil prices

Major stock markets in the Gulf rose in early trade on Monday, tracking oil prices higher following a surprise announcement by OPEC+ to cut more production.

The Organization of the Petroleum Exporting Countries and their allies including Russia shook markets by announcing further production cuts of about 1.16 million barrels per day (bpd) on Sunday.

Saudi Arabia's benchmark index gained 0.8%, with Retal Urban Development SJSC advancing 1.5% and Dr Sulaiman Al-Habib Medical Services Group Co rising 1%.

The kingdom said it would cut output by 500,000 bpd. The Saudi energy ministry said the country's voluntary reduction was a precautionary measure aimed at supporting the stability of the oil market.

Goldman Sachs raised price forecasts for Brent crude futures following the announcement, saying that while the move was surprising, the decision reflects important economic and likely political considerations.

Dubai's main share index added 0.9%, led by a 3.6% leap in blue-chip developer Emaar Properties PJSC.

In Abu Dhabi, the index was up 0.4%.

United Arab Emirates will cut oil production voluntarily by 144,000 barrels per day from May until the end of 2023, the energy minister said on Sunday.

The Qatari index climbed 1.8%, on course to snap a three-day losing streak, with the Gulf's biggest lender Qatar National Bank QPSC jumping 3.5%.