Saudi PIF Is Said to Hit Weak Demand for Marafiq Stake Sale - Bloomberg
Saudi Arabia’s sovereign wealth fund delayed the potential sale of its remaining stake in a local utility firm after lackluster demand from investors, according to people familiar with the matter.
The Public Investment Fund in recent weeks held informal talks about raising as much as $800 million from a share placement of its 17.5% stake in Power and Water Utility Co. for Jubail and Yanbu — known as Marafiq, the people said, asking not to be identified as the information isn’t public.
A resurgence in initial public offerings in the kingdom over the past couple of months has diverted investor attention away from Marafiq’s placement, the people said. The poor performance of the most recent follow-on sales has also made the PIF more cautious about future deals, they said.
The fund may revisit the idea of selling some of its Marafiq stake at a later date, the people said. The PIF declined to comment on the deal while Marafiq didn’t respond to requests for comment.
The PIF, which holds stakes in some of Saudi Arabia’s biggest companies such as Saudi Electricity Co., Saudi Arabian Mining Co. Saudi National Bank and Riyad Bank, is reducing its holdings to raise funds for overseas deals and investments to help diversify the kingdom’s economy away from oil.
Sunday 1 October 2023
#Saudi bourse tracks oil prices lower, Egypt extends losses | Reuters
Saudi bourse tracks oil prices lower, Egypt extends losses | Reuters
Saudi Arabia's stock market ended lower on Sunday in response to Friday's fall in oil prices, while the Egyptian index extended loses on profit-taking.
Saudi Arabia's benchmark index (.TASI) fell 0.1%, extending losses from the previous session, weighed down by a 0.9% fall in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - settled 1% lower on Friday due to macroeconomic concerns and profit-taking.
Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, the finance ministry said, against a backdrop of lower oil prices and the country's extended oil production cuts.
In Qatar, the index (.QSI) dropped 0.4%, hit by a 1% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatar bourse had been temporarily suspended from trading to rectify a technical glitch which occurred in the market's index calculation system at 9:24 a.m. (0624 GMT).
After resolving the fault, the pre-opening session recommenced at 10:15 AM, lasting for 15 minutes, followed by continuous trading from 10:30 AM until the end of the trading session.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.6% lower, as most of the stocks on the index were in negative territory including Fawry for Banking Tehnology and Electronic payment (FWRY.CA), which was down 7.2%.
Saudi Arabia's stock market ended lower on Sunday in response to Friday's fall in oil prices, while the Egyptian index extended loses on profit-taking.
Saudi Arabia's benchmark index (.TASI) fell 0.1%, extending losses from the previous session, weighed down by a 0.9% fall in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - settled 1% lower on Friday due to macroeconomic concerns and profit-taking.
Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, the finance ministry said, against a backdrop of lower oil prices and the country's extended oil production cuts.
In Qatar, the index (.QSI) dropped 0.4%, hit by a 1% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatar bourse had been temporarily suspended from trading to rectify a technical glitch which occurred in the market's index calculation system at 9:24 a.m. (0624 GMT).
After resolving the fault, the pre-opening session recommenced at 10:15 AM, lasting for 15 minutes, followed by continuous trading from 10:30 AM until the end of the trading session.
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.6% lower, as most of the stocks on the index were in negative territory including Fawry for Banking Tehnology and Electronic payment (FWRY.CA), which was down 7.2%.
#SaudiArabia to tap international debt markets as deficits return | Reuters
Saudi Arabia to tap international debt markets as deficits return | Reuters
Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, the finance ministry said, against a backdrop of lower oil prices and the country's extended oil production cuts.
The finance ministry said in a preliminary budget statement on Saturday that it expected a budget deficit of 2% of gross domestic product (GDP) this year rather than an earlier projected surplus, and a deficit of 1.9% of GDP in 2024.
Both deficits are estimated at 161 billion riyals ($43 billion).
Saudi Arabia is working to prepare an annual borrowing plan in accordance with a medium-term debt strategy and "access global debt markets to enhance the kingdom's position in international markets", the finance ministry said.
The country still depends heavily on oil revenues, even though it has spent heavily on initiatives to diversify its economy.
Saudi Arabia is expected to tap the international debt markets to finance a projected budget deficit in 2023-2024, the finance ministry said, against a backdrop of lower oil prices and the country's extended oil production cuts.
The finance ministry said in a preliminary budget statement on Saturday that it expected a budget deficit of 2% of gross domestic product (GDP) this year rather than an earlier projected surplus, and a deficit of 1.9% of GDP in 2024.
Both deficits are estimated at 161 billion riyals ($43 billion).
Saudi Arabia is working to prepare an annual borrowing plan in accordance with a medium-term debt strategy and "access global debt markets to enhance the kingdom's position in international markets", the finance ministry said.
The country still depends heavily on oil revenues, even though it has spent heavily on initiatives to diversify its economy.
#SaudiArabia Projects a $21 Billion Deficit in 2024 - Bloomberg
Saudi Arabia Projects a $21 Billion Deficit in 2024 - Bloomberg
Saudi Arabia has rewritten its budget forecast for next year, saying it expects a deficit instead of a surplus as it ramps up spending and tackles uncertainty in oil markets.
The Finance Ministry also revised its previous forecast of surpluses every year until 2025, now expecting deficits until at least 2026, according to a preliminary budget statement published Saturday.
The $1.1 trillion economy will narrowly avoid a contraction this year, according to Finance Ministry forecasts. By contrast, Bloomberg Economics expects the Saudi government’s oil supply cuts to shrink the economy by about 0.7% this year, a major swing from being the fastest-growing Group-of-20 nation in 2022.
Under Crown Prince Mohammed bin Salman, the country’s de facto ruler, Saudi Arabia is pushing to diversify its oil-dependent economy, building up new domestic industries including electric car-making, tourism and logistics. But the plans are hugely expensive, putting strain on government finances.
Saudi Arabia has rewritten its budget forecast for next year, saying it expects a deficit instead of a surplus as it ramps up spending and tackles uncertainty in oil markets.
The Finance Ministry also revised its previous forecast of surpluses every year until 2025, now expecting deficits until at least 2026, according to a preliminary budget statement published Saturday.
The $1.1 trillion economy will narrowly avoid a contraction this year, according to Finance Ministry forecasts. By contrast, Bloomberg Economics expects the Saudi government’s oil supply cuts to shrink the economy by about 0.7% this year, a major swing from being the fastest-growing Group-of-20 nation in 2022.
Under Crown Prince Mohammed bin Salman, the country’s de facto ruler, Saudi Arabia is pushing to diversify its oil-dependent economy, building up new domestic industries including electric car-making, tourism and logistics. But the plans are hugely expensive, putting strain on government finances.