S&P affirms Saudi Arabia’s stable outlook and expects fiscal surpluses by 2024
S&P Global Ratings has affirmed Saudi Arabia’s rating at “A-/A-1” with a stable outlook and said the kingdom would return to fiscal surpluses in 2024 on higher crude production as well as growth in its non-oil economy.
The A-/A-1 rating indicates the obligor's strong capacity to meet its financial commitments.
“Reforms in the past few years, including measures to drive non-oil economic growth and widen the non-oil tax base, alongside significant social liberalisation, should continue to improve Saudi Arabia's economic and fiscal profile,” the rating agency said on Friday.
Saudi Arabia's economy grew by 1.2 per cent in the second quarter of this year, a slightly faster pace than the initial estimates, driven by a sharp expansion in the non-oil sector of the Arab world's biggest economy.
The kingdom’s gross domestic product at current prices reached 970 billion riyals ($258.66 billion) in the three months to the end of June, the General Authority for Statistics said earlier this month.
Sunday 17 September 2023
Most Gulf markets extend losses on profit-taking; Egypt gains | Reuters
Most Gulf markets extend losses on profit-taking; Egypt gains | Reuters
Most stock markets in the Gulf ended lower on Sunday as profit-taking continued, but the Egyptian index bucked the trend to trade at a record high.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, weighed down by a 1.1% fall in Al Rajhi Bank (1120.SE) and a 1.7% decrease in Alinma Bank (1150.SE).
The kingdom faces the risk of an economic contraction this year following its decision to extend crude production cuts, highlighting its still heavy reliance on oil as reforms to diversify are slow moving.
Separately, oil and gas driller ADES Holding is expected to price its initial public offering (IPO) at the top of a range announced this week, one of the banks on the deal said on Thursday.
ADES is set to raise as much as 4.57 billion riyals ($1.22 billion) from the sale of a 30% stake in the company through the public share sale.
In Qatar, the index (.QSI) extended losses for a third session.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, hitting its record high, led by a 5.5% rise in Beltone Financial Holding (BTFH.CA).
UAE's Global Investment Holding Co. has agreed to buy a 30% stake in Eastern Co. (EAST.CA), Egypt's main tobacco products maker, for $625 million, a measure that will widen private participation in the economy, Egypt's cabinet said earlier this month.
Most stock markets in the Gulf ended lower on Sunday as profit-taking continued, but the Egyptian index bucked the trend to trade at a record high.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, weighed down by a 1.1% fall in Al Rajhi Bank (1120.SE) and a 1.7% decrease in Alinma Bank (1150.SE).
The kingdom faces the risk of an economic contraction this year following its decision to extend crude production cuts, highlighting its still heavy reliance on oil as reforms to diversify are slow moving.
Separately, oil and gas driller ADES Holding is expected to price its initial public offering (IPO) at the top of a range announced this week, one of the banks on the deal said on Thursday.
ADES is set to raise as much as 4.57 billion riyals ($1.22 billion) from the sale of a 30% stake in the company through the public share sale.
In Qatar, the index (.QSI) extended losses for a third session.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.6%, hitting its record high, led by a 5.5% rise in Beltone Financial Holding (BTFH.CA).
UAE's Global Investment Holding Co. has agreed to buy a 30% stake in Eastern Co. (EAST.CA), Egypt's main tobacco products maker, for $625 million, a measure that will widen private participation in the economy, Egypt's cabinet said earlier this month.