Saudi Arabia estimates 2024 financing needs at $23 bln | Reuters
Saudi Arabia estimates financing needs of about 86 billion riyals ($22.93 billion) in 2024 under a borrowing plan approved by Finance Minister Mohammed Al Jadaan, the National Debt Management Center (NDMC) said on Thursday.
The kingdom, the world's top oil exporter, has forecast a budget deficit of 79 billion riyals in 2024, slightly smaller than a deficit of 82 billion riyals projected for last year as lower crude production and global prices reduced revenue.
But the government, tasked with implementing an economic transformation programme known as Vision 2030, will also increase spending over the coming years to drive domestic growth and support non-oil GDP.
The NDMC said that the borrowing plan is expected to finance the budget deficit and the repayment of upcoming debt maturities, as well as to tap markets opportunistically as part of the country's liability management strategy.
"Furthermore, it (the borrowing plan) is committed to leveraging market opportunities to execute alternative government financing activities that promote economic growth, such as financing development and infrastructure projects."
Public debt is expected to reach 1.115 trillion riyals by the end of 2024, which is around 26% of GDP, the government has previously said.
Saudi Arabia has spent heavily on initiatives to diversify its economy from oil and gas, with strong domestic demand fuelling growth and momentum in non-oil activities last year, which outpaced overall growth.
But the country remains reliant on hydrocarbon revenue to bolster public finances.
Saudi Arabia tapped debt markets for a $10 billion three-part bond in January 2023, followed by a $6 billion Islamic bond in May.
Thursday 4 January 2024
Most Gulf markets gain on rising oil prices | Reuters
Most Gulf markets gain on rising oil prices | Reuters
Most stock markets in the Gulf ended higher on Thursday on the back of rising oil prices, with the Saudi index leading the gains.
Oil - a catalyst for the Gulf's financial markets - rose by about 1%, extending gains amid concerns over Middle Eastern supply after disruptions at an oilfield in Libya and heightened tensions relating to the Israel-Hamas war.
Saudi Arabia's benchmark index (.TASI) advanced 1.8%, buoyed by a 5% jump in Elm Co (7203.SE) and a 6.9% surge in the country's biggest lender Saudi National Bank (1180.SE).
However, petrochemical makers and cement companies were mostly in negative territory.
Several Saudi Arabian companies released regulatory filings late Wednesday and on Thursday, saying state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will increase production costs and reduce earnings.
Among the losers, Saudi Basic Industries Corp (2010.SE) finished 1.7% lower, whereas Yamama Cement (3020.SE) slid 3.2%.
Separately, the kingdom estimates financing needs of about 86 billion riyals ($22.93 billion) in 2024 under a borrowing plan approved by Finance Minister Mohammed Al Jadaan, the National Debt Management Center (NDMC) said.
The Qatari benchmark (.QSI) increased 0.5%, with petrochemical firm Industries Qatar (IQCD.QA) gaining 1.2%.
Dubai's main share index (.DFMGI) was up 0.2%, helped by a 1.5% rise in toll operator Salik Co (SALIK.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.7%.
Minutes of the Fed's Dec. 12-13 meeting released on Wednesday showed a growing sense among policymakers that inflation was under control and raised concerns about the risks of "overly restrictive" monetary policy on the economy.
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) eased 0.2%, hit by a 2.3% fall in tobacco monopoly Eastern Co (EAST.CA).
Most stock markets in the Gulf ended higher on Thursday on the back of rising oil prices, with the Saudi index leading the gains.
Oil - a catalyst for the Gulf's financial markets - rose by about 1%, extending gains amid concerns over Middle Eastern supply after disruptions at an oilfield in Libya and heightened tensions relating to the Israel-Hamas war.
Saudi Arabia's benchmark index (.TASI) advanced 1.8%, buoyed by a 5% jump in Elm Co (7203.SE) and a 6.9% surge in the country's biggest lender Saudi National Bank (1180.SE).
However, petrochemical makers and cement companies were mostly in negative territory.
Several Saudi Arabian companies released regulatory filings late Wednesday and on Thursday, saying state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will increase production costs and reduce earnings.
Among the losers, Saudi Basic Industries Corp (2010.SE) finished 1.7% lower, whereas Yamama Cement (3020.SE) slid 3.2%.
Separately, the kingdom estimates financing needs of about 86 billion riyals ($22.93 billion) in 2024 under a borrowing plan approved by Finance Minister Mohammed Al Jadaan, the National Debt Management Center (NDMC) said.
The Qatari benchmark (.QSI) increased 0.5%, with petrochemical firm Industries Qatar (IQCD.QA) gaining 1.2%.
Dubai's main share index (.DFMGI) was up 0.2%, helped by a 1.5% rise in toll operator Salik Co (SALIK.DU).
In Abu Dhabi, the index (.FTFADGI) fell 0.7%.
Minutes of the Fed's Dec. 12-13 meeting released on Wednesday showed a growing sense among policymakers that inflation was under control and raised concerns about the risks of "overly restrictive" monetary policy on the economy.
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) eased 0.2%, hit by a 2.3% fall in tobacco monopoly Eastern Co (EAST.CA).
#Saudi Arabian companies warn Aramco fuel price hike may curb earnings | Reuters
Saudi Arabian companies warn Aramco fuel price hike may curb earnings | Reuters
Several Saudi Arabian companies released regulatory filings late on Wednesday and Thursday saying that state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will raise production costs and lower earnings.
Saudi Aramco (2222.SE) notified the companies in the kingdom of the price hike this week, saying it will be effective from Jan. 1. Aramco increased retail diesel prices for 2024 by 53% to 1.15 riyals ($0.3067) per litre, its third increase since 2016.
The companies have said the impact from the increase in prices could start to filter through in the first quarter, and that businesses are looking for ways to enhance their efficiencies to offset the rising costs.
Nama Chemicals (2210.SE), Saudi Ceramic (2040.SE), Qassim Cement (3040.SE), Saudi Aramco Base Oil Co. (2223.SE), and Rabigh Refining and Petrochemical (2380.SE) are among the scores of companies that said they were affected by the price increases.
Middle East Company for Manufacturing and Producing Paper on Thursday (1202.SE) said it expected the financial impact of the price hike to be an increase of about 3% in total annual sales costs.
Saudi Industrial Investment Group on Thursday said its subsidiaries face higher production costs this year because of the fuel increase.
Saudi Arabia's Tadawul stock index fell 1.6% in early trading on Thursday.
Several Saudi Arabian companies released regulatory filings late on Wednesday and Thursday saying that state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will raise production costs and lower earnings.
Saudi Aramco (2222.SE) notified the companies in the kingdom of the price hike this week, saying it will be effective from Jan. 1. Aramco increased retail diesel prices for 2024 by 53% to 1.15 riyals ($0.3067) per litre, its third increase since 2016.
The companies have said the impact from the increase in prices could start to filter through in the first quarter, and that businesses are looking for ways to enhance their efficiencies to offset the rising costs.
Nama Chemicals (2210.SE), Saudi Ceramic (2040.SE), Qassim Cement (3040.SE), Saudi Aramco Base Oil Co. (2223.SE), and Rabigh Refining and Petrochemical (2380.SE) are among the scores of companies that said they were affected by the price increases.
Middle East Company for Manufacturing and Producing Paper on Thursday (1202.SE) said it expected the financial impact of the price hike to be an increase of about 3% in total annual sales costs.
Saudi Industrial Investment Group on Thursday said its subsidiaries face higher production costs this year because of the fuel increase.
Saudi Arabia's Tadawul stock index fell 1.6% in early trading on Thursday.
New orders drive growth in #UAE non-oil business in December -PMI | Reuters
New orders drive growth in UAE non-oil business in December -PMI | Reuters
Non-oil business activity in the United Arab Emirates grew strongly in December with a jump in new orders supporting strong output, a survey showed on Thursday, boosting prospects for continued expansion in 2024.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index rose to 57.4 in December from 57.0 in November, well above the 50.0 mark signalling growth in activity and the second highest reading in more than four years.
Overall output remained robust with the related subindex at 63.9 in December, unchanged from the previous month, amid a year-end surge in new business and a strong sales pipeline, according to the survey results.
The subindex for new orders jumped to 63.0 in December from November's 60.5 and remained well above the series average, but the rate of growth was driven largely by domestic demand as export order growth slowed to a five-month low.
"The UAE non-oil economy closed the year with another impressive expansion, confirming the strongest quarterly upturn since Q2 2019 and putting the sector in a favourable position for 2024," David Owen, senior economist at S&P Global, said.
"Not only did businesses enjoy another substantial increase in output, but sentiment data suggested that they expect this growth to continue, with year-ahead expectations among the highest seen since prior to the COVID-19 pandemic."
Business optimism for output activity over the next 12 months strengthened in December from the previous month with respondents citing new sales pipelines and enquiries, as well as improving market conditions, as reasons for confidence.
Non-oil business activity in the United Arab Emirates grew strongly in December with a jump in new orders supporting strong output, a survey showed on Thursday, boosting prospects for continued expansion in 2024.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index rose to 57.4 in December from 57.0 in November, well above the 50.0 mark signalling growth in activity and the second highest reading in more than four years.
Overall output remained robust with the related subindex at 63.9 in December, unchanged from the previous month, amid a year-end surge in new business and a strong sales pipeline, according to the survey results.
The subindex for new orders jumped to 63.0 in December from November's 60.5 and remained well above the series average, but the rate of growth was driven largely by domestic demand as export order growth slowed to a five-month low.
"The UAE non-oil economy closed the year with another impressive expansion, confirming the strongest quarterly upturn since Q2 2019 and putting the sector in a favourable position for 2024," David Owen, senior economist at S&P Global, said.
"Not only did businesses enjoy another substantial increase in output, but sentiment data suggested that they expect this growth to continue, with year-ahead expectations among the highest seen since prior to the COVID-19 pandemic."
Business optimism for output activity over the next 12 months strengthened in December from the previous month with respondents citing new sales pipelines and enquiries, as well as improving market conditions, as reasons for confidence.
Major Gulf markets mixed on Fed minutes, rising oil | Reuters
Major Gulf markets mixed on Fed minutes, rising oil | Reuters
Major stock markets in the Gulf were mixed in early trade on Thursday as investors continued to gauge the path of interest rates in the U.S., although rising oil prices limited losses.
Minutes from the Federal Reserve's December meeting did little to change investor sentiment. Policymakers appeared increasingly convinced last month that inflation was coming under control, with growing concern about the damage "overly restrictive" monetary policy might do to the economy, according to the minutes.
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.
The Qatari benchmark (.QSI) dropped 0.7%, with Qatar Islamic Bank (QISB.QA) losing 1.3% and petrochemical maker Industries Qatar (IQCD.QA) retreating 1.3%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
Saudi Arabia's benchmark index (.TASI) reversed early losses to trade 0.5% higher, with auto rental firm Lumi (4262.SE) gaining 1.9%, while oil giant Saudi Aramco (2222.SE) added 0.3%.
Oil prices - which fuel the Gulf's economy - rose adding to solid gains in the previous session on persisting concerns over Middle Eastern supply following disruptions at a field in Libya and heightened tensions around the Israel-Gaza war.
The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that cooperation and dialogue within the wider OPEC+ producer alliance will continue.
However, the Saudi index's gains were limited by losses in petrochemical and cement firms .
Several Saudi Arabian companies released regulatory filings late on Wednesday and Thursday saying that state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will raise production costs and lower earnings.
Among the losers, Saudi Basic Industries Corp (2010.SE) declined more than 2%, whereas Sahara International Petrochemical Co (2310.SE) slipped 1.9%.
In the cement division, City Cement (3003.SE) slid 3.2% and Saudi Cement (3030.SE) was down 2.7%.
Dubai's main share index (.DFMGI) added 0.1%, helped by a 2.1% increase in toll operator Salik Co (SALIK.DU).
Major stock markets in the Gulf were mixed in early trade on Thursday as investors continued to gauge the path of interest rates in the U.S., although rising oil prices limited losses.
Minutes from the Federal Reserve's December meeting did little to change investor sentiment. Policymakers appeared increasingly convinced last month that inflation was coming under control, with growing concern about the damage "overly restrictive" monetary policy might do to the economy, according to the minutes.
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.
The Qatari benchmark (.QSI) dropped 0.7%, with Qatar Islamic Bank (QISB.QA) losing 1.3% and petrochemical maker Industries Qatar (IQCD.QA) retreating 1.3%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
Saudi Arabia's benchmark index (.TASI) reversed early losses to trade 0.5% higher, with auto rental firm Lumi (4262.SE) gaining 1.9%, while oil giant Saudi Aramco (2222.SE) added 0.3%.
Oil prices - which fuel the Gulf's economy - rose adding to solid gains in the previous session on persisting concerns over Middle Eastern supply following disruptions at a field in Libya and heightened tensions around the Israel-Gaza war.
The Organization of the Petroleum Exporting Countries (OPEC) said on Wednesday that cooperation and dialogue within the wider OPEC+ producer alliance will continue.
However, the Saudi index's gains were limited by losses in petrochemical and cement firms .
Several Saudi Arabian companies released regulatory filings late on Wednesday and Thursday saying that state energy company Saudi Aramco's decision to raise feedstock and fuel prices for this year will raise production costs and lower earnings.
Among the losers, Saudi Basic Industries Corp (2010.SE) declined more than 2%, whereas Sahara International Petrochemical Co (2310.SE) slipped 1.9%.
In the cement division, City Cement (3003.SE) slid 3.2% and Saudi Cement (3030.SE) was down 2.7%.
Dubai's main share index (.DFMGI) added 0.1%, helped by a 2.1% increase in toll operator Salik Co (SALIK.DU).