Israel-Hamas War Impact: IMF Is Downbeat on Mideast With Funding Need at $186 Billion - Bloomberg

Israel-Hamas War Impact: IMF Sees Mideast Funding Needs at $186 Billion - Bloomberg

The International Monetary Fund said shockwaves from the Israel-Hamas war could long reverberate through Middle Eastern economies and have already contributed to a $30 billion rise in their financing needs this year.

Total funding requirements over 2024 now amount to $186 billion for emerging market and middle-income economies in the Middle East and North Africa, according to the IMF, up from $156 billion in 2023. Relative to the fund’s projections in October, that’s an increase equal to about 6 percentage points of their fiscal revenues, which it said is mostly attributable to Egypt and Tunisia.

The burden is growing as a result of “the deterioration in the current-account situation” and reflects spillovers from the war in Gaza, according to Jihad Azour, the IMF director for the Middle East, North Africa and Central Asia. “It’s more that impact than anything else,” he said in interview Wednesday.

#SaudiArabia Eyes Reviving Massive New Aramco Share Sale - Bloomberg

Saudi Arabia Eyes Reviving Massive New Aramco Share Sale - Bloomberg

Saudi Arabia is considering plans to revive a follow-on offering in Aramco as soon as February, in a multibillion-dollar deal that’s likely to rank among the biggest share sales in recent years, according to people familiar with the matter.

The kingdom is working with a group of advisers and is seeking to potentially raise at least 40 billion riyals ($10 billion) from the share sale on the Saudi stock exchange, the people said, asking not to be identified because the information is private. A successful deal would bring in funds for Crown Prince Mohammed bin Salman’s ambitious push to diversify the economy.

Plans for the new sale comes four years after Saudi Arabia raised about $30 billion in Aramco’s initial public offering, which was the world’s largest ever stock sale. MBS, as the crown prince is called, has increased his spending ambitions since as he pumps huge amounts of money into the new development Neom, tourism, sports and other projects.

There’s no final decision on the timing of the sale and the deal could still be delayed. The Saudi government referred requests for comment to Aramco, which declined to comment.

Shares in Aramco fell 2.2% Wednesday in Riyadh, the most since Mar. 15.

Mideast Stocks: Most Gulf markets fall on geopolitical tensions, caution before Fed

Mideast Stocks: Most Gulf markets fall on geopolitical tensions, caution before Fed

Most stock markets in the Gulf closed lower on Wednesday, on escalating geopolitical friction in the region, and as investors remained cautious ahead of U.S. Federal Reserve's decision. Yemen's Iran-aligned Houthi group said on Wednesday it would keep up attacks on U.S. and British warships in the Red Sea in what it called acts of self defence, stoking fears of long-term disruptions to world trade.

The Houthis, who control the most populous parts of Yemen, have been attacking ships in and around the Red Sea, saying they are acting in solidarity with Palestinians in the Gaza war.

Saudi Arabia's benchmark index retreated 1.6%, dragged down by a 4.7% fall in Al Rajhi Bank and a 3.6% decline in the country's biggest lender Saudi National Bank. Among other losers, oil giant Saudi Aramco was down 2.2%. The kingdom is considering reviving plans for a follow-on share offering in Aramco to raise at least 40 billion riyals ($10.67 billion) as early as February, Bloomberg News reported on Wednesday, citing people familiar with the matter.

Saudi Arabia's government on Tuesday ordered Aramco to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020. 

In Abu Dhabi, the index eased 0.1%. 

Dubai's main share index gave up early gains to finish flat.

The Qatari benchmark lost 0.2%, hit by a 1.2% retreat in the Gulf's biggest lender Qatar National Bank. Oil prices - a catalyst for the Gulf's financial markets - fell, pressured by lacklustre economic activity in leading crude importer China, but a first monthly gain since September remained in sight as flaring tensions in the Middle East heightened supply concerns.

Outside the Gulf, Egypt's blue-chip index slid 6.8%, retreating from record highs, as all its constituents were in negative territory, including Talaat Mostafa Holding , which was down 15.3%. The International Monetary Fund said on Wednesday it was continuing to engage with Egypt on the policy and financing package that could support moving forward with programme reviews under its $3 billion loan with the country.

#Kuwait Sees Deficit Narrowing 13.5% to $19.1 Billion Next Year - Bloomberg

Kuwait Sees Deficit Narrowing 13.5% to $19.1 Billion Next Year - Bloomberg

Kuwait unveiled budget proposals that forecast a 5.89 billion dinar ($19.1 billion) deficit for the fiscal year starting April 1.

The Gulf nation is projecting revenue of 18.66 billion dinars, down 4.1% from the current year’s estimate, the Ministry of Finance said Tuesday. Non-oil revenue is forecast to rise 5.7% to 2.42 billion dinars.

Projected outlays in 2024-25 are seen at 24.55 billion dinars, down 6.6% on the current year’s budget.

OPEC member Kuwait posted a surplus of 6.4 billion dinars in the 2022-23 fiscal year, ending nine straight years of budget deficits as a boom in oil revenue and more controlled spending delivered a boost for one of the Middle East’s biggest crude producers.

The projected deficit for the next fiscal year is 13.5% lower than that forecast in the current year.

Other Budget Highlights:

• Planned capex accounts for 9.3% of total spending
• Oil calculations are based on a daily production rate of 2.7 million barrels per day; Kuwait’s breakeven point is $90.7/bbl
• Wages and subsidies account for 79.4% of the budget

#SaudiArabia GDP: Economy Shrinks Again After Kingdom’s Oil Cuts - Bloomberg

Saudi Arabia GDP: Economy Shrinks Again After Kingdom’s Oil Cuts - Bloomberg

Saudi Arabia’s economy contracted at a slower pace in the fourth quarter, as the world’s biggest crude exporter extended its oil output cuts in an attempt to push up prices.

Gross domestic product shrank 3.7% compared with a year earlier, after a decline of 4.4% in the previous quarter, according to preliminary data released Wednesday by the kingdom’s statistics agency. For 2023 as a whole, the economy shrank 0.9%, its first full-year drop since the global pandemic.

A slump that started with output reductions remains largely confined to the energy industry, with oil activities dropping by 16% in the fourth quarter. Growth in non-oil activities, the engine of job creation, reached 4.3%.

#Saudi Al Rajhi Bank FY 2023 net profit slips 3% as operating income falls

Saudi Al Rajhi Bank FY 2023 net profit slips 3% as operating income falls

Al Rajhi Bank, Saudi Arabia's second-biggest lender, reported a 3% fall in full-year net profit to 16.62 billion riyals ($4.4 billion), as operating income fell offsetting lower provisioning for expected credit losses.

The net profit was a shade below analysts’ mean estimate of SAR16.2 billion, according to LSEG data.

Net financing and investment income fell by 4.1%, the bank said in a regulatory filing on Riyadh's Tadawul exchange on Wednesday.

Mashreq Bank’s 2023 profits skyrocket 130.5%; operating income hit $2.94bln

Mashreq Bank’s 2023 profits skyrocket 130.5%; operating income hit $2.94bln

Mashreq Bank achieved net profits attributable to the shareholders worth AED 8.58 billion ($2.33 billion) in 2023, up 130.30% from AED 3.72 billion ($1.01 billion) in January-December 2022.

The UAE lender posted operating income amounting to AED 10.80 billion ($2.94 billion) as of 31 December 2023, an annual hike of 47.90% from AED 7.30 billion ($1.98 billion), according to the financial results.

Earnings per share (EPS) reached AED 42.82 ($11.66) last year, higher by 130.30% year-on-year (YoY) than AED 18.59 ($5.06).

Total assets increased by 21.70% YoY to AED 239.98 billion ($65.33 billion) in 2023 from AED 197.24 billion ($53.70 billion). Meanwhile, the customer’s deposits rose by 28.50% YoY to AED 132.60 billion ($36.10 billion) from AED 98.82 billion ($26.90 billion).

#SaudiArabia's Q4 GDP shrinks 3.7% y/y -govt data | Reuters

Saudi Arabia's Q4 GDP shrinks 3.7% y/y -govt data | Reuters

Saudi Arabia's real gross domestic product (GDP) shrunk 3.7% in the fourth quarter, government data showed on Wednesday, marking a second consecutive quarter of contraction, as a decline in oil activities weighed.

The kingdom's GDP shrunk 4.4% in the third quarter of 2023, its first quarterly contraction since the COVID-19 pandemic, hurt by cuts to oil production and lower crude prices.

Saudi Arabia, the world's largest oil exporter, is pumping around 9 million barrels per day (bpd), well below its around 12 million bpd capacity after it cut production as part of an agreement with OPEC and other oil producers.

Major Gulf markets rise in early trade; #Saudi extends loss | Reuters

Major Gulf markets rise in early trade; Saudi extends loss | Reuters

Major stock markets in the Gulf edged higher in early trade on Wednesday, on course to claw back some of its losses from the previous session, although the Saudi index bucked the trend to trade lower.

Saudi Arabia's benchmark index (.TASI) dropped 0.4%, hit by a 2.6% fall in the country's biggest lender Saudi National Bank (1180.SE) and a 1.5% decline in Al Rajhi Bank (1120.SE). The index had fallen more than 2% on Tuesday.

The International Monetary Fund lowered its 2024 forecast for economic growth in Saudi Arabia to 2.7% on Tuesday, projecting a slower recovery amid lower oil production, but said non-oil growth this year was expected to remain "robust".

Saudi Arabia's government on Tuesday ordered state oil company Aramco (2222.SE) to halt its oil expansion plan and to target a maximum sustained production capacity of 12 million barrels per day (bpd), 1 million bpd below a target announced in 2020.

Shares of Aramco were down 0.2%.

Oil prices - a catalyst for the Gulf's financial markets - fell as lacklustre economic activity in China, the world's biggest crude importer, weighed on sentiment, but prices were set for their first monthly gain since September as broadening Middle East conflicts raised supply concerns.

Dubai's main share index (.DFMGI) added 0.2%, helped by a 1.1% rise in blue-chip developer Emaar Properties (EMAR.DU), while Tecom Group (TECOM.DU) advanced 2.2% following a sharp rise in annual profit.

In Abu Dhabi, the index (.FTFADGI) added 0.1%.

The Qatari benchmark (.QSI) gained 0.5%, with Qatar Islamic Bank (QISB.QA) rising 1.1%.

On Tuesday, Hamas said it had received and was studying a new proposal for a ceasefire and release of hostages in Gaza, presented by mediators after talks with Israel, in what appeared to be the most serious peace initiative for months.

IMF Says #Saudi Slump Matched Argentina Among Worst G-20 Laggards - Bloomberg

IMF Says Saudi Slump Matched Argentina Among Worst G-20 Laggards - Bloomberg

Saudi Arabia’s economy had one of its steepest contractions of the past two decades after reducing oil output to support crude prices, according to the International Monetary Fund, a slump matched only by crisis-stricken Argentina among the Group of 20 nations.

Gross domestic product slipped 1.1% last year, the IMF said in the World Economic Outlook on Tuesday, flipping its previous forecast for a small expansion. While expecting the kingdom to return to growth this year and next, its projection for Saudi Arabia saw the biggest downgrade for 2024 after Argentina in the G-20.

Seven years into Crown Prince Mohammed bin Salman’s campaign to diversify and open up the world’s largest crude exporter, the setback is a reminder of just how dependent the $1.1 trillion economy remains on the fortunes of the oil sector that accounts for about 40% of GDP.

It’s also a stark turnaround from 2022, when record crude output propelled Saudi Arabia to the fastest growth in the club of industrial and emerging economies with a surge of almost 9%. The Saudi government is forecasting much faster rebound than the IMF this year and estimates the economy narrowly avoided a contraction in 2023.

#Saudi leads most Gulf markets lower; Egypt gains | Reuters

Saudi leads most Gulf markets lower; Egypt gains | Reuters

Most stock markets in the Gulf ended lower on Tuesday amid escalating tensions in the region with the Saudi index leading the losses.

Washington vowed to take "all necessary actions" to defend its troops following a deadly drone attack in Jordan by Iran-backed militants, the first U.S. military deaths since the Israel-Gaza war began, putting markets on edge.

Saudi Arabia's benchmark index (.TASI) declined 2.2%, dragged down by a 2.7% drop in Al Rajhi Bank (1120.SE) and a 10% slide in drilling service provider ADES Holding Co (2382.SE).

Saudi Aramco (2222.SE) on Tuesday said it was asked to cut its planned maximum sustainable oil production capacity to 12 million barrels a day (bpd), having raised it to 13 million bpd almost four years ago.

According to Farah Mourad, senior market analyst at EQUITI Group, the kingdom's decision to cut its planned maximum sustainable oil production capacity by one million bpd implies that the expected demand might not be as high as initially anticipated.

Also, supply disruptions in the Middle East have led to a decrease in investor confidence, said Mourad. While, the bleak economic outlook in China - the world's second-largest crude consumer - also added to the worries after a Hong Kong court ordered the liquidation of property company China Evergrande Group deepening its real estate crisis.

In Abu Dhabi, the index (.FTFADGI) eased 0.3%.

Dubai's main share index (.DFMGI) gave up early gains to close 0.1% lower, hit by a 0.8% fall in top lender Emirates NBD (ENBD.DU).

However, the index's losses were limited by a 13.2% surge in Mashreqbank (MASB.DU). The lender, which closed at its highest since Nov. 2008, reported a 150% surge in fourth-quarter profit.

The Qatari benchmark (.QSI) lost 0.4%, with petrochemical maker Industries Qatar losing 2.3%.

The Federal Reserve's policy meeting and Chair Jerome Powell's commentary will likely be the main event of the week, while investors will also watch out for the U.S. employment report this week to help gauge the direction markets will take in the months to come.

Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 3.8%, led by a 15% jump in Oriental Weavers Carpets (ORWE.CA).

Egypt's central bank is expected to leave overnight interest rates unchanged at a policy meeting on Thursday, according to a poll of analysts, who are on tenterhooks awaiting the outcome of talks with an International Monetary Fund team now in Cairo.

#Kuwait’s GDP to remain ‘flat to slightly negative’ in 2024: NBK

Kuwait’s GDP to remain ‘flat to slightly negative’ in 2024: NBK

Kuwait’s economic growth is likely to remain flat to slightly negative in 2024 on the back of additional oil sector cuts, the National Bank of Kuwait said in its latest quarterly economic brief.

The non-oil sector will likely rise over 3%, spurred on by refining gains and still-growing private consumption.

The recent GDP figures, published after a long delay, showed non-oil growth accelerating to 1.5% year-on-year (YoY) in Q2 2023, after several quarters of contraction. However, overall GDP growth was -1.3% due to declining oil sector output.

Growth in the second quarter was driven by solid gains in the transportation and construction sectors, with the latter reflecting the rebound seen in project awards in 2023.

#Saudi’s Albilad to debut its new ETF on Tadawul after $5mln IPO

Saudi’s Albilad to debut its new ETF on Tadawul after $5mln IPO

Albilad Capital, the investment arm of Islamic lender Bank Albilad, will start trading its exchange-traded fund (ETF) on the main market of Saudi Stock Exchange (Tadawul) on Wednesday.

The Albilad MSCI Saudi Growth ETF will trade with the symbol 9408 and ISIN Code SA160G54J043 with around 10% daily fluctuation limits, the Saudi Exchange said on Monday.

The fund raised SAR19 million ($5 million) in an initial public offering (IPO) that closed on January 24.

Saudi Arabia has recently dominated the region’s IPO market as it continues to implement its diversification strategy to reduce its dependence on oil.

In the third quarter of 2023 alone, the kingdom accounted for five out of the six IPOs in the region, with the highest proceeds from Lumi Rental Co ($291 million), which listed on the Tadawul main market, according to EY.

#Saudi Aramco ditches plan to lift oil production

Saudi Aramco ditches plan to lift oil production

Saudi Aramco has dropped a plan to boost its daily production capacity, in a big policy reversal by the world’s largest oil company. 

The state-run oil producer said on Tuesday that it had been asked by the energy ministry to abandon a plan to increase the kingdom’s maximum sustainable production capacity from 12mn barrels a day to 13mn b/d by 2027. 

The multibillion-dollar investment programme had set the company apart from much of the industry where spending on oil production is generally falling owing to concerns about climate targets and the strength of future demand. Saudi Aramco accounts for about 10 per cent of the world’s oil supply. 

The decision was taken by the ministry of energy and was not driven by any technical or operational issue at the company, which remains in a position to restart the investment programme if requested, according to a person familiar with the matter. 

Saudi Aramco is currently producing about 9mn b/d, following the kingdom’s decision to cut production as part of Opec’s efforts to support prices. That means the company already has 3mn b/d of spare capacity that it could bring online to meet any sudden spike in demand, reducing the immediate need to increase its maximum output further, the person said. 

Saudi Arabia expects to free up a further 1mn b/d of oil for export by displacing liquid fuels used in the kingdom for power generation with gas, the person added.

Mideast Stocks: Major Gulf markets in red; #Dubai gains

Mideast Stocks: Major Gulf markets in red; Dubai gains

Major stock markets in the Gulf fell in early trade on Tuesday ahead of the Federal Reserve's decision and rising tensions in the region, while the Dubai bourse rose on upbeat earnings.

The Federal Reserve's policy meeting and Chair Jerome Powell's commentary will likely be the main event of the week, while investors will also watch out for the U.S. employment report this week to help gauge the direction markets will take in the months to come.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index dropped 0.5%, hit by a 10% fall in ADES Holding Co, and a 1.7% decline in ACWA Power Co.

On the Other hand, oil giant Saudi Aramco added 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - gained following a more than 1% drop the previous session as escalating geopolitical tensions in major producing regions in the Middle East fuelled supply concerns.

Aramco, in an indication for the future demand outlook, said it had received a directive from the energy ministry to maintain its maximum sustainable capacity at 12 million barrels a day, and not to continue increasing it to 13 million barrels per day.

The Qatari benchmark dropped 0.6%, with Qatar Islamic Bank losing 1.3% and petrochemical maker Industries Qatar retreating 1.4%.

Washington vowed to take "all necessary actions" to defend its troops following a deadly drone attack in Jordan by Iran-backed militants, the first U.S. military deaths since the Israel-Gaza war began, putting markets on edge.

In Abu Dhabi, the index eased 0.2%.

Dubai's main share index added 0.3%, with sharia-compliant lender Dubai Islamic Bank gaining 1% ahead of its earnings announcement.

Elsewhere, MashreqBank surged as much as 13.2% to 190.25 dirhams, its highest since November 2008, after reporting a 150% jump in fourth-quarter net profit.

Russian tycoon's investment group ICT sells Polymetal stake to Omani-owned consortium | Reuters

Russian tycoon's investment group ICT sells Polymetal stake to Omani-owned consortium | Reuters

Investment company ICT Holding, owned by Russian businessman Alexander Nesis, has sold its 23.9% stake in gold and silver producer Polymetal International to a consortium led by the Omani government, Polymetal said in a statement on Monday.

Polymetal International is seeking to sell its Russian assets, which were sanctioned by the U.S. in 2023 in response to Moscow sending troops into Ukraine in February 2022. Polymetal, founded by Nesis' ICT Group in 1998, is one of the world's top ten gold miners and owns production assets across Russia and Kazakhstan.

A consortium of Omani investors, led by the Omani government-owned fund Mercury Investments International, acquired 113,201,189 shares through Mercury's subsidiary Maaden International Investment, Polymetal International said.

The consortium, led by Maaden, acquired shares from ICT Holding's subsidiary Powerboom Investments Limited, Polymetal International said.

As a result of the deal, ICT Holding is no longer a Polymetal (POLY.MM) shareholder, and ICT representative Konstantin Yanakov has resigned from Polymetal's board of directors, Polymetal said. The company expects the buyer to nominate a candidate to the board in due course.

Moody’s upgrades #Qatar’s rating to AA2, changes outlook to stable

Moody’s upgrades Qatar’s rating to AA2, changes outlook to stable

Moody’s credit rating agency has upgraded Qatar’s credit rating to AA2 and revised its outlook to stable, reflecting the expected improvement in Qatar’s financial metrics from 2021 to 2023.

In a report, Moody’s Investors Service upgraded Qatar’s long-term debt ratings in local and foreign currencies to Aa2 from Aa3. The agency also raised Qatar’s foreign currency medium-term note program rating to (P)Aa2 from (P)Aa3, with a stable outlook.

The upgrade reflects Moody’s view of the significant improvement in Qatar’s existing financial metrics, supporting the expectation that Qatar will continue to maintain financial prudence.

According to the agency, the significant improvement in Qatar’s debt burden and debt-servicing metrics achieved during the period 2021-2023 is expected to continue and likely improve in the medium term.

Boursa #Kuwait surpasses five stock exchanges in GCC states

Boursa Kuwait surpasses five stock exchanges in GCC states

According to the Al-Shall report, Boursa Kuwait surpassed five out of seven stock exchanges in the Gulf region in the number of listed companies, with the only exception being the Saudi market, reports Al- Jarida daily. As of the end of 2023, the number of companies listed on various Gulf exchanges stands at 232 in Saudi Arabia, 149 in Kuwait, 102 in Abu Dhabi, 95 in Muscat, 71 in Dubai, 51 in Qatar, and 42 in Bahrain. The Saudi market notably leads in terms of the sheer number of listed companies. Liquidity concentration is a prominent aspect in the Gulf stock exchanges, except the Saudi market.

The report highlights the concentration reaching a maximum of 92.5 percent for the 10 most liquid companies on the Bahrain Stock Exchange, followed by 83 percent for the Muscat Stock Exchange, 75.9 percent for the Dubai market, 66.6 percent for the Abu Dhabi market, 62.1 percent for the Qatar Stock Exchange, and 60.7 percent for Kuwait. The Saudi market, in contrast, exhibits a lower concentration, with its share not exceeding 30.2 percent. The report raises concerns about the unhealthy phenomenon of liquidity concentration among the top 10 companies in the Gulf stock exchanges. It emphasizes the need for periodic analysis and review to address potential risks and corrections.

Although the Boursa Kuwait appears to have a slightly lower concentration, when factoring in its superior number of listed companies, the concentration level is higher compared to other Gulf exchanges. This poses a risk of corrections and raises concerns about potential issues arising from exceptionally highly liquid companies. The report also touches upon Kuwait’s historical trend of high popularity in stock exchange listings, resulting in undue premiums on the prices of listed companies. In the absence of these premiums and with the climate crisis changing market dynamics, the report predicts an acceleration in withdrawal rates from listing, potentially reducing the percentage of liquidity concentration.

Mideast Stocks: Major Gulf markets mixed in early trade

Mideast Stocks: Major Gulf markets mixed in early trade

Major stock markets in the Gulf were mixed in early trade on Monday, even as oil prices gained after a drone attack killed three U.S. troops in Jordan.

Oil prices, a catalyst for the Gulf's financial markets, rose slightly with Brent trading at $83.91 a barrel by 0800 GMT.

The attack on U.S. troops in a drone strike in Jordan raised concerns of a wider conflict in the Middle East.

Saudi Arabia's benchmark stock index was up 0.3%, with media firm MBC Group climbing 2.3% and Saudi Arabian Mining gaining 2.1%.

Dubai's benchmark stock index rose 0.1%, supported by an increase of 1.5% in tolls operator Salik Co and 0.8% gain in its largest lender Emirates NBD.

In Abu Dhabi, the benchmark stock index retreated 0.3%, with UAE's largest lender First Abu Dhabi Bank dropping 1.2% and Multiply Group sliding 1.4%.

The Qatari benchmark index was down 0.2%, weighed down by a loss of 0.9% in Qatar Islamic Bank and a 1.3% drop in Commercial Bank.

Gulf bourses end mixed; Egypt rises | Reuters

Gulf bourses end mixed; Egypt rises | Reuters

Stock markets in the Gulf were mixed on Sunday amid strong oil prices as investors awaited clues on interest rate policy after the U.S. Federal Reserve's favored inflation reading showed moderating prices.

Oil prices - a catalyst for the Gulf's financial markets - settled at their highest in nearly two months on Friday, helped by higher demand expectations while Middle East supply concerns added support.

Saudi Arabia's benchmark index (.TASI) closed 0.8% higher, snapping previous session of losses, with all sectors in positive territory.

Saudi Arabian media firm MBC Group (4072.SE) jumped 7.5% and SAL Saudi Logistics Services Co (4263.SE) climbed 4.4%.

Among the gainers, the world's largest Islamic lender, Al Rajhi Bank(1120.SE) surged 3.4%, the highest rise since Dec 14.

The Qatari index (.QSI) dipped slightly to trade flat. Losses in energy, finance, and communication sectors offset gains in industry and utilities.

Commercial Bank (COMB.QA) and Qatar Gas Transport (QGTS.QA) dropped 1.3% each while Industries Qatar (IQCD.QA) and Qatar Electricity and Water (QEWC.QA) each added 0.6%.

The U.S. Commerce Department data showed on Friday that U.S. price pressures moderated in December, with markets hoping the data will keep the Fed on track to begin rate cuts by the middle of this year.

Most Gulf currencies are pegged to the dollar, and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose for a second straight session and ended 3.5% higher, supported by gains in most stocks, with Commercial International Bank (COMI.CA) surging 2.4% and Sidi Kerrie (SKPC.CA) jumping 16.9%.

QSE index rises 38.46 points at start of trading

QSE index rises 38.46 points at start of trading

The general index of Qatar Stock Exchange (QSE) rose 38.47 points, or 0.37%, at the beginning of trading on Sunday, reaching 10,386 points compared to Thursday's closing.

The QSE general index was supported by a rise in most sectors: Telecoms by 0.62%; Industrials by 0.53%; Banks and Financial Services by 0.38%; Real Estate by 0.36%; and Transportations by 0.33%. In contrast, the performance was negative for the Insurance sector by 0.26% and the Consumer Goods and Services sector by 0.02%.

At around 10:00 am, QSE recorded 2503 transactions worth QR 63.855 million, distributed among 21.674 million shares.

Arab Health to showcase UK investment potential for Gulf boom

Arab Health to showcase UK investment potential for Gulf boom

Arab Health 2024 opens with a twist as the booming home market triggers growing interest in investing in the global healthcare sector, including the state-dominated UK NHS, which will be showcased at this week's event.

While domestic healthcare markets are rapidly developing within Gulf Co-operation Council countries, cash-rich investment funds are looking to life sciences, pharmaceutical and healthcare assets in the UK, the US and Europe.

Current Health Expenditure (CHE) in the GCC is projected to reach $135.5 billion in 2027, an increase of 5.4 per cent from 2022, according to Aspen Capital.

Jonathan Evans, director at the Association of British HealthTech Industries, noted the significant investments coming from GCC countries into Britain.

“In UK HealthTech alone, there are in the region of 4,500 companies. Add to that the thousands of pharmaceutical businesses and ancillary healthcare companies, and you have a huge ecosystem that will be looking for investment, so I would imagine we will see plenty more deal-making in the years ahead,” he told The National.

Aramco Hunts for Asia Deals to Boost Refining and Chemicals - Bloomberg

Aramco Hunts for Asia Deals to Boost Refining and Chemicals - Bloomberg

Saudi Aramco, the world’s biggest oil exporter, is seeking refining and chemicals deals in Asia as it looks to rapidly expand the business and secure long-term buyers for its crude.

The company is looking at China and India for more acquisitions, president of the downstream unit, Mohammed Al Qahtani, said. The majority of Aramco’s crude is sold in Asia, and demand for oil and related products is expected to keep expanding in the region, he said.

The state-run company, which has made more than $80 billion of downstream investments since 2016, is already making moves in China. It bought a stake in one company last year and is in talks for two others. Saudi Arabia sees demand for petrochemicals that are used to make goods such as plastics continuing to rise over the coming decades, even as oil’s use in transportation is likely to wane with the global energy transition.

“Really, the big growth markets for us are China, India and southeast Asia,” Al Qahtani said in an interview in Dhahran, Saudi Arabia. The company is looking for “organic and inorganic” opportunities, he said, referring to acquisitions and expanding existing projects. “As we speak today we have teams in China negotiating deals.”

Talks in China are proceeding faster than in India, where Aramco is in discussions with partners and customers for “actual investments on the ground,” Al Qahtani said, declining to give more details.

#Qatar Lifted by Moody’s to Match France, #UAE and Overtake UK - Bloomberg

Qatar Lifted by Moody’s to Match France, UAE and Overtake UK - Bloomberg

Qatar’s already high credit rating was upgraded by Moody’s Investors Service for the first time since 2007, as strong global demand for liquefied natural gas boosts the Gulf state’s long-term prospects.

Moody’s lifted Qatar one level to Aa2, its third-highest investment grade, according to a statement late Thursday. It’s now on par with France, South Korea and the United Arab Emirates, and a level above the UK.

The rating company also changed Qatar’s outlook from positive to stable, meaning another upgrade is unlikely in the short term. Qatar’s rated the same level by S&P Global Ratings and one step below by Fitch Ratings.

“The upgrade reflects Moody’s view that the significant improvement in Qatar’s fiscal metrics, achieved during 2021-2023, will be sustained in the medium term,” Moody’s analysts including David Rogovic wrote. “The government will continue to maintain fiscal prudence, including by continuing to wind down its infrastructure spending program.”

#UAE’s largest lender says oil prices will average at $80 per barrel in 2024

UAE’s largest lender says oil prices will average at $80 per barrel in 2024

The UAE’s largest lender is expecting oil prices to average $80 per barrel in 2024 in a “cautiously optimistic” forecast following record crude demand from India and China in 2023 and strong recovery in global air travel.

First Abu Dhabi Bank (FAB) said in its newly launched ‘Global Investment Outlook 2024’ that geopolitical risks are expected to remain in play during the year, but certain fuel product inventories are still tight.

Saudi Arabia will increase its crude production at some point during the year, it is just a question of when, the report said, with Russian flows expected to stay close to current levels and US output close to peaking with the dollar softening.

Brent crude averaged $82 in 2023, close to FAB’s revised forecast in June of $84, the bank said, and potential headwinds and tailwinds remain in play in 2024.

The bank said the ‘war-risk’ premium which saw both Brent and WTI jump above $90 a barrel following the outbreak of the Israel-Hamas conflict in October 2023 has since dissipated.

“But the longer the fighting there continues, the risk of a broader escalation lingers, highlighted by the several attacks launched by Houthi rebels in Yemen against commercial vessels sailing in the Red Sea late last year,” the bank said.

“This ongoing threat to shipping should not be underestimated as almost 10% of the world’s seaborne oil supplies travel via this maritime route, as do significant flows of LNG.”

Other geopolitical issues including the suspension of oil production in the semi-autonomous Kurdistan region as well as Iran’s level of oil exports will be factors that could impact prices to observe in 2024, the bank said.

Mideast Stocks: #UAE markets track oil price lower

Mideast Stocks: UAE markets track oil price lower

Stock exchanges in the United Arab Emirates declined on Friday, tracking oil prices on the prospect that oil shipping disruptions in the Red Sea may ease as Chinese officials have asked Iran to help rein in attacks on ships by the Iran-backed Houthis.

Adding to the market woes, Fitch Ratings said broader Gaza conflict fallout adds to risks for neighbouring sovereigns.

Oil price - a key catalyst for the Gulf's financial markets - was down 0.58% at $81.95 a barrel by 1127 GMT. Abu Dhabi's benchmark index shed 0.6%, extending losses to the second session, dragged down by a 2.3% decline in IHC-owned investment firm Multiply Group and 1.7% loss in UAE's largest lender First Abu Dhabi Bank.

Among other stock, Sharjah-based Dana Gas dropped 2.8%, hitting nearly a three-year low of 0.730 dirham a share after the firm said that a drone strike damaged a liquid storage tank at the Khor Mor facility in the Kurdistan Region Of Iraq. Dana Gas said production was temporarily suspended to put out a fire, which was extinguished, and a resumption of operations was expected soon.

Abu Dhabi market could find some support if oil prices remain on an uptrend, although geopolitical tensions could continue to weigh on sentiment, said Daniel Takieddine, CEO of MENA at BDSwiss. Dubai's main index slipped 0.2% as top lender Emirates NBD Bank fell 1.6%, while low-cost carrier Air Arabia lost 1%.

The Dubai index notched up 2% on a weekly basis, while the Abu Dhabi index logged 1.5% weekly losses, according to LSEG data.

#Dubai's property boom shows signs of fizzling out | Reuters

Dubai's property boom shows signs of fizzling out | Reuters

As cranes speckle the Dubai skyline and ultra-luxury homes change hands at record prices, signs that the city-state's property boom is fizzling out are coming into view.

Developers, investors and brokers are privately asking how quickly one of last year's hottest real estate markets could turn and whether a painful correction akin to the slump that rocked the emirate in 2008 can be ruled out.

Since then Dubai has pursued an economic reboot anchored on what it hopes is sustainable growth, including a 10-year plan known as D33, to double output and become one of the world's top four financial centres.

Still, the real-estate industry remains a key barometer of its success, accounting for 8.9% of the economy.

"Dubai's vulnerability to correction lies in its dependence on foreign capital, particularly from China and Russia," Ronan Hannan, principal at consultancy Proven Partners, told Reuters.

Massive infrastructure spending, generous income tax policies and an 'open-door' approach to immigration reinforced after the pandemic have attracted thousands of foreigners.

Mideast Stocks: Major Gulf markets slip on geopolitical tensions

Mideast Stocks: Major Gulf markets slip on geopolitical tensions

Major stock markets in the Gulf ended lower on Thursday amid rising geopolitical tensions in the region, while rising oil prices limited losses. Maersk said explosions nearby forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen, accompanied by the U.S. Navy.

On Wednesday, the U.S. military carried out more strikes in Yemen, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and were preparing to launch, the U.S. military said.

Saudi Arabia's benchmark index eased 0.1%, with media giant MBC Group declining 9.9%, falling for a third consecutive session. MBC Group, since its debut on Jan. 08, has risen more than 130% against its initial public offering price of 25 riyals per share. Elsewhere, oil giant Saudi Aramco finished 0.5% lower.

Saudi Arabian bourse's performance was relatively flat today, yet the overall bullish trend persisted and may lead to further gains, said Ahmad Awni, head of NCM Investment's marketing department.

"The recent rebound in oil prices, if sustained, could positively impact the energy sector, which has been under pressure for some time, with stocks like Saudi Aramco being affected."

Oil prices rose after data showed U.S. crude stockpiles fell more than expected last week and a fresh attack by Houthi forces on ships off Yemen's coast underscored the peril facing trade in a key global transit route.

Dubai's main share index eased 0.2%, hit by a 1.4% fall in toll operator Salik Co. Among other losers, Emirates NBD Bank (ENBD) - which rose more than 5% in early trade - concluded 0.8% lower. ENBD, Dubai's biggest bank by assets, reported a 3% rise in fourth-quarter profit, helped by asset growth, a low-cost funding base and higher transaction volumes.

The lender also doubled its annual dividend proposal to 120 fils per share compared to 60 fils per share in 2022.

In Abu Dhabi, the index was down 0.3%. The Qatari benchmark lost 0.3%, hit by a 1.7% fall in Islamic lender Masraf Al Rayan. Outside the Gulf,

Egypt's blue-chip index gained 0.3%, with Talaat Mostafa Holding advancing 8.4%.

One of World’s Richest Doctors Sees Fortune Surge to $12 Billion - Bloomberg

One of World’s Richest Doctors Sees Fortune Surge to $12 Billion - Bloomberg

A Saudi doctor saw his fortune close in on $12 billion on Thursday as shares of his healthcare firm rebounded, returning him to the ranks of the Middle East’s wealthiest private individuals.

Shares in Sulaiman Al Habib’s eponymous company have surged 30% since hitting a one-year low in October. That’s made Al Habib — who founded the firm and holds a 40% stake — the third-richest person in the Middle East who’s not a member of a royal family, according to the Bloomberg Billionaires Index.

The stock has risen sixfold since its initial public offering in 2020, putting it in touching distance of a record high. Since the listing, the shares have outperformed the benchmark Tadawul index, which has doubled in that period.

The billionaire, who is in his early 70’s, grew the $28 billion healthcare chain from a single clinic opened in 1993 to a company that operates 22 medical facilities and 22 pharmacies across Saudi Arabia, the UAE and Bahrain. The firm has 10 hospitals and medical centers under development.

Middle Eastern Broadcaster MBC Is World’s Best-Performing IPO - Bloomberg

Middle Eastern Broadcaster MBC Is World’s Best-Performing IPO - Bloomberg

A more than twofold jump in the share price of a Middle Eastern broadcaster has made it the world’s best-performing listing this year, highlighting the continued strength in one of the few busy markets for initial public offerings.

MBC Group, the biggest broadcaster in the Middle East, has seen its shares rise 134% since they started trading in Riyadh on Jan. 8 after a $222 million listing, making it the largest gainer among IPOs that raised at least $50 million worldwide, according to data compiled by Bloomberg.

For the past two years, the Persian Gulf has been a bright spot in an anemic global IPO market, buoyed by high oil prices and efforts by regional governments to grow their capital markets. A standout feature of the region has been the consistently strong level of investor demand for share sales, particularly from local buyers.

“MBC is a household name in the region and investors are putting faith in their streaming platform, which caters to the MENA region,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital. “As more IPOs come into regional markets, investors finally have a chance to gain exposure to sectors that were never represented on the equity markets.”

#Dubai sees rising appetite from Chinese asset managers -regulator chief | Reuters

Dubai sees rising appetite from Chinese asset managers -regulator chief | Reuters

Chinese asset managers are lining up for licenses to operate in Dubai, said Ian Johnston, chief executive of the Dubai Financial Services Authority (DFSA), as warming ties between China and the Middle East continue to offer business opportunities.

"(Chinese) investment management and asset management firms have been coming to be licensed by us ... That's growing," Johnston told Reuters on the sidelines of the Asian Financial Forum in Hong Kong.

The DFSA regulates the Dubai International Financial Centre (DIFC), which Johnson says has been luring global banks, asset and wealth managers, and hedge funds, and now is seeing rising interest from Chinese entities.

Johnston said previously it was mainly China's big commercial banks operating in the DIFC, offering trade and project financing. Now Chinese asset managers are joining as well, he said, while Chinese investors are looking to diversify their assets amid continuing China-U.S. tensions.

China is the United Arab Emirates' biggest trading partner, and last year the UAE, Saudi Arabia and four others were invited to join the BRICS block of emerging market economies.

A growing number of wealth managers and family offices based in Hong Kong and Singapore are also setting up offices in Dubai, as investors look for safe havens, neutral political stance and favourable policies.

Johnston said as well that Chinese and Dubai bourses had been in discussions for cooperation in exchange-traded fund (ETF) and index products.

Last year, a new ETF tracking Saudi equities made its trading debut in Hong Kong, becoming the first product of its kind in Asia.

The DFSA is also in close cooperation with the Hong Kong monetary and securities regulators, jointly working on promoting financial innovation and sustainable investments, Johnston said.

#Dubai's biggest bank Emirates NBD posts 3% rise in Q4 net profit; misses estimate

Dubai's biggest bank Emirates NBD posts 3% rise in Q4 net profit; misses estimate

Emirates NBD, Dubai’s biggest lender, reported a Q4 2023 net profit of 4 billion UAE dirhams ($1.09 billion), up 3% year-on-year.

For FY 2023, the lender reported a net profit of AED21.5 billion, up 65% from AED13 billion in the same period last year.

The surge in net profit was delivered on the back of 'a stable low-cost funding base, increased transaction volumes and substantial recoveries', the bank said in a statement to Dubai Financial Market on Thursday.

The Q4 net profit came in below analysts’ mean estimate of AED5.6 billion, according to LSEG data, while FY profit was in line at AED21.82 billion.

Impairment allowances were down 33% y-o-y due to strong recoveries achieved through the year with impaired loan ratio improving to 4.6%, the bank said.

Net interest margin (NIM) rose 52 basis points in 2023 to 3.95% on favourable loan and deposit mix and higher interest rates.

Total income jumped 32% to AED43 billion on "excellent deposit mix, solid loan growth and strong fee and commission growth across all business segments."

Emirates NBD saw its asset base jump 16% in 2023 to AED863 billion, on the basis of “strong capital”.

The bank, which is celebrating its 60th anniversary, proposed a 100 fils dividend plus 20 fils, doubling last year’s dividend.

Mideast Stocks: Most Gulf markets ease on geopolitical tensions; #Dubai gains

Mideast Stocks: Most Gulf markets ease on geopolitical tensions; Dubai gains

Most major stock markets in the Gulf were subdued in early trade on Thursday on simmering tensions in the region, although the Dubai index bucked the trend to trade higher.

Maersk said explosions nearby forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around when they were transiting the Bab al-Mandab Strait off Yemen, accompanied by the U.S. Navy.

On Wednesday, the U.S. military carried out more strikes in Yemen early on Wednesday, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and were preparing to launch, the U.S. military said.

Saudi Arabia's benchmark index fell 0.2%, weighed down by a 9.9% slide in media giant MBC Group.

Elsewhere, oil giant Saudi Aramco eased 0.2%.

However, Saudi Arabian Amiantit advanced 6.3%, following the Capital Market Authority's nod to increase capital through a rights issue.

In Qatar, the index dropped 0.2%, with Islamic lender Masraf Al Rayan losing 2.3%.

The Abu Dhabi index was down 0.1%.

Dubai's main share index added 0.6%, boosted by a 5.1% jump in top lender Emirates NBD after reporting an increase in fourth-quarter net profit.

The bank also doubled its annual dividend proposal to 120 fils per share compared to 60 fils for 2022.

#AbuDhabi Islamic Bank eyes corporate lending growth in 2024, #Saudi expansion | Reuters

Abu Dhabi Islamic Bank eyes corporate lending growth in 2024, Saudi expansion | Reuters

Abu Dhabi Islamic Bank (ADIB) (ADIB.AD) aims to seize further opportunities in corporate lending this year as part of its growth strategy, taking advantages in opportunities such as commercial and real estate, its finance chief said.

The bank on Tuesday posted a 45% rise in full-year net profit to a own record high of 5.25 billion dirhams ($1.43 billion), driven by revenues growth of almost 40%.

ADIB Chief Financial Officer Mohamed Abdel Bary said there were opportunities for the bank across several industries such as manufacturing, tourism and real estate, spurring growth in its corporate segment.

"We are looking at banking the ecosystem within that sector and going to large and medium corporate entities within our risk appetite," he told Reuters.

The Islamic lender enjoys a solid market share in its retail banking services, which Bary put at 15-16% domestically.

Outside of the UAE, ADIB plans to grow its presence in neighbouring Saudi Arabia while continuing to invest in Egypt despite current "challenges".

Bary did not disclose details on expansion plans in Saudi Arabia but added that the market is attractive on many fronts, and "provides opportunities to participate in many industries within the bank's risk appetite."

"Given we already have a big presence in Egypt, maybe Saudi will take a little more of our attention probably in the near future," Bary said.

Mideast Stocks: #Dubai bourse leads Gulf markets higher on upbeat earnings

Mideast Stocks: Dubai bourse leads Gulf markets higher on upbeat earnings

Most stock markets in the Gulf ended higher on Wednesday, largely on the back of corporate earnings with the Dubai index leading the gains. Dubai's main share index advanced 1.8%, with Dubai Islamic Bank (DIB) jumping 7.7% - its biggest intraday gain since June 2020 - after reporting upbeat full-year earnings.

DIB, the biggest Islamic lender in the United Arab Emirates, on Tuesday reported a 24% increase in full-year attributable net profit to 6.80 billion dirhams ($1.85 billion) from a year earlier Also, the lender raised its 2023 dividend proposal to 45% versus 30% for the year 2022. Elsewhere, top lender Emirates NBD closed 4.8% higher, ahead of its earnings announcement.

Saudi Arabia's benchmark index gained 0.6%, led by a 1.7% rise in Etihad Atheeb Telecommunication and a 1.4% increase in auto rental firm Lumi. Elsewhere, oil giant Saudi Aramco edged 0.2% higher.

Oil - which fuels the Gulf's economy - steadied, with Brent trading near $80 a barrel, as a Chinese economic stimulus package and geopolitical tensions were offset by concerns over tepid demand and a stronger dollar.

Separately, Saudi-based Middle East Pharmaceutical Industries Company, known as Avalon Pharma, priced its initial public offering (IPO) at the top of its range, selling the shares at 82 riyals ($21.87) each on Wednesday. In Abu Dhabi, the index finished flat.

The Qatari benchmark added 0.1%, with petrochemical maker Industries Qatar gaining 2.7%. However, Islamic lender Masraf Al Rayan declined 3.8%, after reporting a 8% increase in 2023 profit. Outside the Gulf, Egypt's blue-chip index rose 0.3%, with Talaat Mostafa Holding leaping 8.4%.

Meanwhile, Egyptian economic growth will be slower than previously expected as its pound weakens, inflation cuts into purchasing power and fallout from the Gaza crisis eats into the country's main sources of foreign currency, a Reuters poll showed on Wednesday.

#SaudiArabia's Avalon Pharma prices IPO at top of range | Reuters

Saudi Arabia's Avalon Pharma prices IPO at top of range | Reuters

Saudi-based Middle East Pharmaceutical Industries Company, known as Avalon Pharma, priced its initial public offering (IPO) at the top of its range, selling the shares at 82 riyals ($21.87) each on Wednesday.

Avalon Pharma is offering six million shares, or 30% of its issued share capital, on the Saudi Exchange's Main Market.

Earlier this month, the company disclosed a price range of between 78 riyals and 82 riyals a share.

Headquartered in Riyadh, Avalon Pharma's main activities include the development, manufacturing and marketing of consumer health and beauty brands as well as generic prescription medicines.

SoftBank Veteran Entrusted With #Saudi, #UAE Billions Readies Second Act - Bloomberg

SoftBank Veteran Entrusted With Saudi, UAE Billions Readies Second Act - Bloomberg

The Indian-born financier who helped open the floodgates to Middle Eastern wealth for Masayoshi Son’s $100 billion Vision Fund is attempting his second act. This time, he’s going solo.

At SoftBank Group Corp.’s splashy tech vehicle, Rajeev Misra helped secure commitments worth $45 billion from Saudi Arabia’s Public Investment Fund and $15 billion from Abu Dhabi’s Mubadala Investment Co. Investments in high-flying startups ensued — Uber Technologies Inc. and WeWork Inc. among them — but many bets blew up as markets turned. Misra largely stepped back from that venture in 2022 after a tenure marred by internal clashes and investment writedowns.

Undeterred by those losses, Misra’s now attempting a comeback — this time in credit. He’s even leaning on the same Middle Eastern network to raise money. It’s a gamble that has shades of the kind of chutzpah he and Son displayed last time round, though Misra now says he’s determined to do better after watching the investment mistakes made in the aftermath of SoftBank's scramble to hire people.

“I have learned my lessons,” Misra, 62, said in an interview with Bloomberg News. He’s already raised $6.8 billion for his One Investment Management from backers including Mubadala and Sheikh Tahnoon bin Zayed Al Nahyan’s Royal Group. Misra is seeking to boost the size of the fund to more than $10 billion, and hopes to get Saudi Arabia to invest as well.

While he’s vowing to deploy clients’ cash with a dose of caution, it’s an endeavor that will come with its own set of risks, particularly given his past history with Middle Eastern money. A global economy slammed by two wars and other geopolitical upheaval could once again bring market turbulence. And even Misra acknowledges there are limits to the region’s largess. “Endless well, bottomless pit? There is no such thing,” he said. “If you lose money, that pit is closed.”

Riyadh's multi-billion EV dream risks crashing into reality | Reuters

Riyadh's multi-billion EV dream risks crashing into reality | Reuters

Riyadh has spent billions to try to turn itself into a hub for electric vehicles and overcome obstacles including a lack of infrastructure, talent and raw materials, as it seeks to catch up in the global race to reap the profits of the new industry.
As part of a broader plan by Saudi Crown Prince Mohammed bin Salman to wean the economy off oil and create jobs, the kingdom has invested at least $10 billion in U.S.-based Lucid Motors, set up Ceer, Saudi Arabia's own brand, and built an EV metals plant.

The Public Investment Fund (PIF), Saudi Arabia's $700 billion sovereign wealth fund, has a goal to produce 500,000 EVs annually by 2030, up from a target of 150,000 in 2026.

Yet by December, the kingdom's sole auto factory, opened in September 2023, had reassembled around 800 vehicles, based on kits supplied from Arizona.

Saudi Arabia has failed in the past to attract automotive manufacturing.

Japan’s Toyota (7203.T) declined a deal in 2019, citing high labour costs, a lack of local suppliers, and a small local market.

#Oman’s economic recovery continues: IMF affirms

Oman’s economic recovery continues: IMF affirms

The Sultanate of Oman has welcomed the International Monetary Fund 2023 Article IV Consultation Report, approved by IMF Executive Board on Tuesday.

The report was issued following a series of consultations between IMF experts and over 20 government and private entities as part of the annual periodic consultations under Article IV of the Articles of Agreement of the IMF.

At the level of domestic economy performance,the report indicates that the Sultanate of Oman’s economic recovery continues, supported by favourable oil prices and sustained reform momentum. This manifested in the growth of the real GDP by 4.3 percent in 2022, primarily driven by the growth of hydrocarbon and non-hydrocarbon sectors, despite its slowdown in the first half of 2023 on the back of OPEC+-related oil production cuts.

In addition, non-hydrocarbon growth accelerated from 1.2 percent in 2022 to 2.7 percent in the first half of 2023, supported by recovering agricultural, forestry, fisheries, construction activities and robust services sector.

In terms of domestic prices levels, the report highlights the factors that contributed to containing inflation, which significantly receded from 2.8 percent in 2022 to 1.2 percent during January-September 2023. These include subsidies on basic food items, caps on domestic petroleum prices and the peg to a strong US Dollar.

Mideast Stocks: #Dubai leads most Gulf markets higher

Mideast Stocks: Dubai leads most Gulf markets higher

Stock markets in the Gulf were up on Wednesday in early trade amid rising oil prices and robust corporate earnings, with the Dubai index outperforming its peers.

Oil prices, a catalyst for the Gulf's financial markets, rose slightly after a modest fall earlier in the session as traders weighed the impact on prices stemming from escalating geopolitical tensions and concerns over tepid demand.

Dubai's benchmark stock index surged 1.2%, the highest rise in nearly three months, with all sectors in positive territory.

The index was lifted by a record surge in Dubai Islamic Bank which jumped 7.9% in early trade, the sharpest rise since June 2020.

The biggest Islamic lender in the United Arab Emirates, reported on Tuesday a 24% increase in full-year attributable net profit to 6.80 billion dirhams ($1.85 billion), up from 5.47 billion ($1.49 billion) a year earlier.

Saudi Arabia's benchmark stock index was up 0.6%, supported by a gain of 1% in Al Rajhi Bank and a 1.4% rise in Elm Co.

In Abu Dhabi, the benchmark stock index advanced 0.3%, with UAE's largest lender First Abu Dhabi Bank gaining 1.8% and Abu Dhabi Islamic Bank climbing 2.5%.

ADIB reported on Tuesday a 28% increase in fourth-quarter net profit to 1.5 billion dirhams ($408.45 million), up from 1.17 billion a year earlier.

The Qatari benchmark index inched up 0.1%, aided by a gain of 0.9% in Qatar National Bank and 1.2% rise in Qatar International Islamic Bank.

Deutsche Bank Brings Back Al Kishi as CEO for Mideast, Africa - Bloomberg

Deutsche Bank Brings Back Al Kishi as CEO for Mideast, Africa - Bloomberg

Deutsche Bank AG appointed Jamal Al Kishi for a second stint as chief executive officer for the Middle East and Africa, four years after the seasoned executive left to lead a regional bank.

Al Kishi will also assume the role of vice chairman for origination and advisory from April 1, according to a statement. He replaces Deutsche’s current head of the region, Kees Hoving, who will focus on his roles within the corporate bank and as chief country officer for the United Arab Emirates.

The Saudi national is returning to the German lender after spending four years as the head of Gulf International Bank in Bahrain. He was previously the regional CEO of Deutsche Bank between 2016 and 2020 and was also head of the group’s franchise in Saudi Arabia.

International banks including HSBC Holdings Plc and JPMorgan Chase & Co. have been beefing up their operations in the oil-rich Gulf region which is playing an increasingly important role on the global finance stage through its large corporates and sovereign entities.

Deutsche Bank has been rebuilding its Middle Eastern presence in recent years through several key hires from rival banks. Since 2010, the lender has more than doubled its capital commitment in the region.

“We see clear opportunity in key emerging markets like Middle East and Africa, and rising client demand as activity accelerates around its increasingly important growth corridors,” Alexander von zur Muehlen, Deutsche Bank’s CEO for Asia Pacific, Europe, the Middle East and Africa, and Germany, said in the statement.

Al Kishi will be based in Riyadh, though he will be spending significant time in Deutsche Bank’s Middle Eastern hub in Dubai. That underscores how some global banks are increasing their focus on Saudi Arabia. The kingdom has been putting pressure on international firms to move senior people or their regional headquarters to the capital.

Wise Plc Among UK Fintech Delegation Heading to #SaudiArabia - Bloomberg

Wise Plc Among UK Fintech Delegation Heading to Saudi Arabia - Bloomberg

A delegation of business leaders from the UK’s financial technology community will head to Saudi Arabia this month as part of efforts to lure investment into British startups.

Executives from Wise Plc and venture capital firms Anthemis Group and Outward VC are among those expected to attend, according to documents seen by Bloomberg. They’ll meet with representatives from the Saudi Central Bank and the Public Investment Fund in Riyadh as part of the three-day mission, the documents show.

Investment in the UK’s fintech sector has dried up in recent years as higher interest rates, inflation and declines in valuations curbed appetite. Total investment in the sector plummeted to $5.1 billion in 2023, a 65% decline from a year earlier, according to Innovate Finance.

Meanwhile investment in Saudi’s startup market has been heating up. Tamara, a buy-now-pay-later startup, was valued at over $1 billion after raising $340 million in December. Tabby, another Saudi-based fintech company, hit a $1.5 billion valuation in its own fundraising.

This month’s event will be led by the Saudi British Joint Business Council (SBJBC) and is set to include two dozen fintech executives, partners, and investors. The aim of the event, which is also backed by the UK’s Department for Business and Trade, is to support “knowledge exchange between the UK and Saudi fintech ecosystem,” according to a statement online.

The first UK fintech mission went to Riyadh in 2022, and a handful of British firms have received funding from the kingdom. Wahed, an online investing platform, raised around $50 million in a funding round led by the venture capital arm of Saudi Aramco Entrepreneurship Center.

#AbuDhabi's Mubadala Aims to Double Exposure to Asia by End of the Decade - Bloomberg

Abu Dhabi's Mubadala Aims to Double Exposure to Asia by End of the Decade - Bloomberg

Mubadala Investment Co. is seeking to roughly double its exposure to Asia, joining a bevy of Abu Dhabi-based entities eyeing opportunities in faster-growing emerging markets.

Across Mubadala, “out of our roughly $300 billion in assets under management, only 12% is in Asia today and we want to move that number closer to 25%,” by as soon as 2030, Camilla Macapili Languille, head of the fund’s life sciences and healthcare investments division said in an interview.

While investments in North America and Europe make up a chunk of Mubadala’s portfolio, the Abu Dhabi-based sovereign wealth fund is shifting its attention to emerging-markets where it is currently “underweight,” namely in China, India, Japan and South Korea, according to Macapili Languille whose unit is in charge of international healthcare investments.

“The US will continue to be a core market for us not only for healthcare but in general for the broader private equity business,” she said. Still, “we have always had an interest in Asia.”

Mubadala’s healthcare investment division writes “smaller checks of $200 million to $500 million,” in Asia, compared with up to $1 billion in North America and Europe, she said, “but again, we have flexibility to move up.”

Mideast Stocks: Gulf markets end mixed on volatile oil, geopolitical tensions

Mideast Stocks: Gulf markets end mixed on volatile oil, geopolitical tensions

Stock markets in the Gulf ended mixed on Tuesday, with the Abu Dhabi index falling for the eighth straight session on volatile oil prices and rising tensions in the region.

Oil prices - which fuel the Gulf's economy - eased slightly as traders weighed simmering geopolitical tensions in several regions with supply outages in the U.S. and returning production in Libya.

Tensions rose in the Middle East, where U.S. and British forces carried out a second joint round of strikes on Houthi positions in Yemen on Monday night. In Abu Dhabi, the index dropped 0.3%, hit by a 0.5% fall in conglomerate International Holding Co.

According to Abdelhadi Laabi, Chief Marketing Officer at KAMA Capital, the Abu Dhabi bourse was affected by fluctuations in oil prices and ongoing geopolitical tensions.

"While price corrections could continue for some time, the market could stabilize if conditions improve and return to its uptrend over the last few months."

The Qatari benchmark eased 0.1%, with the Gulf's biggest lender, Qatar National Bank losing 1.1%.

Saudi Arabia's benchmark index edged down, with media giant MBC Group, snapping a seven-day winning streak, falling 9.9%. Since its debut on Jan. 08, the MBC group has risen 188% against its initial public offering price of 25 riyals per share.

Dubai's main share index advanced 0.6%, led by a 8.9% jump in Mashreq Bank The Dubai stock market could continue to find support in the positive local fundamentals. Attention could also turn to earnings releases, which might affect the market trajectory, said Laabi.

Outside the Gulf, Egypt's blue-chip index dropped 1.6%, retreating from record peak, as most of its constituents were in negative territory, including tobacco monopoly Eastern Company, which slid 4.9%.

Mideast Stocks: Major Gulf markets mixed on muted oil prices, regional tensions

Mideast Stocks: Major Gulf markets mixed on muted oil prices, regional tensions

Major stock markets in the Gulf were mixed in early trade on Tuesday, with the Saudi index on course to snap two sessions of gains, amid muted oil prices and rising tensions in the region.

Oil prices, a catalyst for the Gulf's financial markets, were little changed as traders weighed a host of conflicting supply and demand worries, from rising tensions in the Middle East to cold weather woes disrupting U.S. production.

Saudi Arabia's benchmark index eased 0.1%, hit by a 9.9% slide in MBC Group.

Public Investment Fund (PIF), the country's sovereign wealth fund, launched a $5 billion bond on Monday, capital markets publication IFR reported.

In Abu Dhabi, the index was down 0.4%, weighed by a 0.6% fall in conglomerate International Holding.

Meanwhile, Dubai's main share index gained 0.4%, helped by a 8.9% rise in Mashreq Bank.

Separately, the United Arab Emirates president has issued a law establishing an artificial intelligence and advanced technology council, the Abu Dhabi Media Office said on Monday.

Elsewhere, U.S. and British forces carried out a fresh round of strikes targeting an underground storage site as well as missile and surveillance capabilities used by the Iran-aligned Houthi group.

The Qatari benchmark added 0.2%, with petrochemical maker Mesaieed Petrochemical advancing 3.4%.

#Saudi's SABIC gives go-ahead for $6.4bln China petrochemical plant

Saudi's SABIC gives go-ahead for $6.4bln China petrochemical plant

Saudi Basic Industries Corp (SABIC) will go ahead with building a petrochemical complex in southeastern China's Fujian province, the company said in an exchange filing on Sunday, shoring up Saudi ties with China, the world's top oil importer.

The project, expected to cost around $6.4 billion, will be developed in a joint venture with state-owned Fujian Fuhua Gulei Petrochemical.

First proposed in 2018, the joint venture marks the latest in a series of tie-ups between Saudi firms and Chinese refiners.

The complex is expected to be able to produce 1.8 million metric tons of ethylene per year, and is designed to expand SABIC's manufacturing presence in Asia and diversify its feedstock supply chain, SABIC said.

Construction is expected to begin in the first quarter of 2024, with completion expected in the first quarter of 2027.

The announcement follows a number of similar investments by the kingdom's oil giant Saudi Aramco in China's downstream sector.

Early in January, Chinese privately-controlled refiner Rongsheng Petrochemical and Aramco announced they were in talks to take a 50% stake in each other's refineries in China and Saudi Arabia.

Aramco previously announced it had agreed to acquire a 10% stake in Rongsheng, an investment attached to a 20-year crude oil supply deal with Rongsheng-controlled Zhejiang Petrochemical Corp. The deal closed in July at a valuation of $3.4 billion.

In September last year, Aramco announced plans to become a strategic investor in another private Chinese refiner Jiangsu Shenghong Petrochemical, which operates a 320,000 bpd refinery and petrochemical complex in the eastern province of Jiangsu.

Aramco is also in talks to acquire a 10% stake in Shandong Yulong Petrochemical Co, which is building a refinery complex that can process 400,000 barrels of crude a day in eastern China's Shandong province.

#SaudiArabia's Wealth Fund PIF Joins EM Rush to Tap Dollar Bond Market - Bloomberg

Saudi Arabia's Wealth Fund PIF Joins EM Rush to Tap Dollar Bond Market - Bloomberg

Saudi Arabia’s sovereign wealth fund is the latest borrower to benefit from investors’ demand for emerging-market debt, amassing over $27 billion of demand for its deal.

The Public Investment Fund is selling five-year, 10-year and 30-year senior unsecured bonds in benchmark sizes in US dollars, according to a person familiar with the matter. Combined orderbooks were above $27 billion, excluding joint lead managers’ interest, on Monday, said the person, who asked not to be identified because they’re not authorized to speak about it.

The PIF, which manages over $700 billion in assets, is following a spree of bond sales last week, including from Mexico and Hungary. The Kingdom of Saudi Arabia itself also borrowed $12 billion earlier this month, as investors seek to grab debt at high yields before global central banks are expected to lower interest rates later this year.

Gas exporting group sees tight global LNG markets until 2026 | Reuters

Gas exporting group sees tight global LNG markets until 2026 | Reuters

The Gas Exporting Countries Forum (GECF) sees tight global liquefied natural gas (LNG) markets until 2026 as demand rises 1.5% this year and by up to 22% through 2050, the group's secretary general, Mohamed Hamel, said on Monday at a conference in Trinidad and Tobago.

The GECF represents natural gas exporters including Qatar, Russia and Trinidad and Tobago. Its members hold more than two-thirds of the world's gas supplies, according to its website.

In its annual report, the GECF last year warned about record high and volatile gas spot prices in Europe and Asia, and said energy security concerns were taking precedence over climate change mitigation goals, with policymakers focusing on meeting the energy needs of their people.

At the conference on Monday, BP's (BP.L) senior vice president for gas growth, Oksana Dembitska, warned about overly high LNG prices and said they have caused demand destruction, especially in the aftermath of Russia's invasion of Ukraine, which led to a seven-fold increase in prices.

However, BP expects that Europe will continue to be a key destination for LNG for at least another 20 years, which is supporting supply agreements, Dembitska said.

#Saudi launches administrative court to boost investor confidence | Reuters

Saudi launches administrative court to boost investor confidence | Reuters

Saudi Arabia launched on Monday its first administrative enforcement court with jurisdiction over government entities and officials in a bid to boost investor confidence, a Saudi judicial organisation said.

The move follows the enactment of a civil transactions law last month, part of wider judicial reforms initiated by de facto ruler Crown Prince Mohammed Bin Salman and aimed at modernising the economy and reducing reliance on oil exports.

The civil transactions law was in effect the country's first civil code, replacing an unwritten system where judges would have full discretion ruling on commercial disputes on the basis of Islamic law.

The new court and the law aim to boost the confidence of foreign investors weighing whether to do business with the country, where the legal system has long been seen as opaque.

The administrative court will receive complaints from local and foreign investors against government institutions, the Board of Grievances, a judicial body directly associated with the Saudi king, said in a statement.

The court will prioritise resolving issues by mediation but will also have executive power against government entities and officials, it added.

Riyadh in 2021 set a target of reaching $100 billion in foreign direct investment by 2030, which appears far off with most recent data showing just under $33 billion in inflows in 2022.

Gulf markets rise on higher oil prices, #AbuDhabi falls | Reuters

Gulf markets rise on higher oil prices, Abu Dhabi falls | Reuters

Stock markets in the Gulf were up on Monday, tracking a surge in global equities amid rising oil prices, while Abu Dhabi's index retreated.

Oil prices - a key catalyst for the Gulf's financial markets- edged up on Monday as dampened global demand could not offset the threat to supply from tensions in the Middle East.

Brent rose 0.2% at $78.71 a barrel by 1230 GMT.

Saudi Arabia's benchmark index (.TASI) was up for a second consecutive session, ending 0.9% higher, lifted up by a 4.5% rise in SAL Saudi Logistics Services Co (4263.SE) and 9.9% jump in MBC Group (4072.SE).

MBC, a Saudi media company which made its market debut on Jan 8, shot up about 150%, closing at 79.90 riyals a share on Monday.

The Qatari index (.QSI) rose 0.8%, snapping its four-session losing streak, aided by gains in all sectors, with Qatar Islamic Bank (QISB.QA) surging 2.7% and Industries Qatar (IQCD.QA) climbing 1.3%.

Dubai's benchmark index (.DFMGI) dipped slightly to trade flat. Losses in financial and utilities sectors offset the gains in industrials.

Emaar Properties (EMAR.DU) and Dubai Electricity and Water Authority (DEWAA.DU) declined 1.8% and 1.2% respectively while tolls operator Salik Co (SALIK.DU) gained 2.3%.

In Abu Dhabi, the benchmark index (.FTFADGI) was down for a seventh straight session, ending 0.3% lower, weighed down by a 0.5% loss in conglomerate International Holding Co (IHC.AD) and 0.4% drop in UAE's largest lender First Abu Dhabi Bank(FAB.AD).

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose for a third consecutive session and ended 1.2% higher, with Commercial International Bank (COMI.CA) gaining 2.8% and Misr Fertilizers Production Co (MFPC.CA) surging 10.1%.