Most Gulf markets end higher; #Saudi bourse falls | Reuters

Most Gulf markets end higher; Saudi bourse falls | Reuters

Most stock markets in the Gulf ended higher on Monday as investors looked for more clues to the global monetary policy trajectory after mixed U.S. economic data last week, although the Saudi index eased on downbeat bank stocks.

The Qatari benchmark (.QSI) gained 0.4%, with the Gulf's biggest lender, Qatar National Bank (QNBK.QA) rising 0.7%, while Qatar Islamic Bank (QISB.QA) finished 0.5% higher.

The Qatari bourse stabilized to a certain extent after a volatile week, said George Khoury, Global Head of Education and Research at CFI.

"The market could remain exposed to the volatility in energy markets and could be exposed to large fluctuations this week."

In Abu Dhabi, the index (.FTFADGI) added 0.5%, led by a 4% jump in the United Arab Emirates' largest lender, First Abu Dhabi Bank (FAB) (FAB.AD).

FAB has set the final spread for its benchmark-sized 5-year sukuk, or Islamic bond, at 85 basis points over U.S. Treasuries, an arranging bank document showed on Monday.

Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.3% lower, hit by a 1.8% fall in Saudi National Bank (1180.SE) and a 1.6% decrease in Alinma Bank (1150.SE).

Oil prices - a catalyst for the Gulf's financial markets - fell by more than 2% on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tensions in the Middle East.

However, media giant MBC Group (4072.SE) soared 30% above the listing price in its market debut, raising 831 million riyals ($221.59 million) in an initial public offering (IPO) for 10% of the business.

Outside the Gulf, Egypt's blue-chip index <.EGX30> was flat.

Chimera S&P India Shariah ETF: Indian Stocks Get First ETF in Gulf Region - Bloomberg #UAE

Chimera S&P India Shariah ETF: Indian Stocks Get First ETF in Gulf Region - Bloomberg

Gulf investors are poised to get their first regional exchange-traded fund tracking Indian equities.

Lunate Capital LLC is launching the Chimera S&P India Shariah ETF, replicating the performance of the S&P India Shariah Liquid 35/20 Capped Index. The fund will track the performance of Shariah-compliant Indian equities listed on the Bombay Stock Exchange.

Indian stocks climbed for an eighth year in 2023 as the country continues to be one of the most favored markets in Asia. The gains were supported by the fastest growth among the world’s major economies and persistent investor concerns over the outlook for India’s biggest emerging-market rival, China. An informal survey conducted by Bloomberg News showed Indian equities are poised to rise further in 2024.

The S&P India Shariah Liquid 35/20 Capped Index rose 16% last year, although it couldn’t keep pace with the Nifty 50 Index’s 20% gain. The new ETF is set to include large-cap Indian stocks like Reliance Industries Ltd., Infosys Ltd., and Tata Consultancy Services Ltd., and is open for investor subscription from Jan. 12 to Jan. 17.

There were an estimated 3.5 million Indian expatriates in the United Arab Emirates as of 2021, comprising about 30% of the Gulf country’s population. Bloomberg has reported the UAE is considering investing as much as $50 billion in India, its second-largest trading partner. As part of the push, entities overseen by Sheikh Tahnoon bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, have held early-stage talks on investing billions of dollars in India.

Along with other portions of Sheikh Tahnoon’s sprawling empire, Lunate and Chimera Investments will be folded into a new firm called 2PointZero. That firm will be transferred to Abu Dhabi’s $244 billion International Holding Co., which is also chaired by Sheikh Tahnoon — one of Abu Dhabi’s two deputy rulers, the UAE’s national security adviser and brother to its president.

Among his most recent deals in India, a unit of IHC formed a joint venture with the Adani Group, led by Gautam Adani, to explore artificial intelligence and other technologies.

Amazon, Microsoft Boosting #Saudi Offices Amid State Pressure - Bloomberg

Amazon, Microsoft Boosting Saudi Offices Amid State Pressure - Bloomberg

Global technology giants including Amazon.com Inc., Alphabet Inc.’s Google and Microsoft Corp. are among firms working to ramp up their presence in Saudi Arabia amid pressure from the government, which has said it will stop giving contracts to companies without regional headquarters in the country.

The three US firms have all received licenses to establish regional HQs in Riyadh, a government database shows. Those approvals came just ahead of the Jan. 1 deadline set by the Saudi government.

There was a flurry of activity towards the end of the year as large corporations look to establish local HQs. Other firms that have recently received such licenses are Airbus SE, Oracle Corp. and Pfizer Inc.

Saudi Arabia announced the new rules for state contracts in February 2021, saying it wanted to limit ‘economic leakage’ — a term used by the government for state spending that can benefit firms that don’t have a substantial presence in the country.

A key part of Crown Prince Mohammed bin Salman’s economic agenda has been to limit some of the billions in spending by the government and Saudi citizens that leave the country each year. Government officials want to stop giving contracts to international firms who only fly executives in and out of the kingdom.

As part of his drive to boost the economy and attract international investment, MBS, as the Crown Prince is known, has loosened restrictions on gender mixing, women driving, and public entertainment. Still, the limited options available as well as policies like the continued ban on alcohol have made many foreign executives reluctant to live in the country.

#SaudiArabia's MBC media group jumps 30% on market debut after | Reuters

Saudi Arabia's MBC media group jumps 30% on market debut after | Reuters

Shares of Saudi Arabian media giant MBC Group jumped 30% above their listing price on their market debut on Monday, after raising 831 million Saudi riyals ($222 million) in an initial public offering (IPO) for 10% of the business.

Shares traded at 32.5 riyals ($8.67) as the Riyadh market opened, against an IPO offer price of 25 riyals per share.

($1 = 3.7502 riyals)

It operates 13 free-to-air TV channels and runs the streaming-platform Shahid, known as the "Netflix of the Middle East".

There has been a flurry of Saudi IPOs in recent years as the government privatises state assets and encourages private sector companies to list in a bid to deepen capital markets and attract investment, part of a reform push aimed at cutting the Kingdom's reliance on oil.

Oil slides as #Saudi price cuts counter Middle East worries | Reuters

Oil slides as Saudi price cuts counter Middle East worries | Reuters

Oil prices fell by more than 2% on Monday on sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output, offsetting supply concerns generated by escalating geopolitical tension in the Middle East.

Brent crude slid 2.2%, or $1.74, to $77.02 a barrel by 1024 GMT while U.S. West Texas Intermediate crude futures shed 2.3%, or $1.73, to $72.08.

Both contracts climbed more than 2% in the first week of 2024 on intensifying geopolitical risk in the Middle East after attacks by Yemeni Houthis on ships in the Red Sea.

On Sunday rising supply and competition with rival producers prompted Saudi Arabia to cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months.

"Oil watchers are rightly questioning that the kingdom's cut is not only aimed at quelling interference from non-OPEC supply but from its very own cartel membership," said John Evans, of oil broker PVM.

Major Gulf markets gain in early trade | Reuters

Major Gulf markets gain in early trade | Reuters

Major stock markets in the Gulf edged higher in early trade on Monday as investors awaited more clues on global monetary policy trajectory after mixed U.S. economic data last week.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, with oil giant Saudi Aramco (2222.SE) rising 0.8%.

Aramco slashed the official selling price (OSP) for February-loading Arab Light to Asia by $2 a barrel from January to $1.50 a barrel over Oman/Dubai quotes, a level last seen for November 2021.

The price cut, the biggest in 13 months, is in line with market expectations, as refiners called for competitive prices from Saudi Arabia comparing to crude oil supplied from other Middle Eastern producers and the arbitrage cargoes from the Atlantic Basin.

Among other gainers, media giant MBC Group (4072.SE) soared 30% above their listing price on Monday on their market debut, after raising 831 million riyals ($221.59 million) in an initial public offering (IPO) for 10% of the business.

Pharmaceutical manufacturer Middle East Pharmaceutical Industries Company, known as Avalon Pharma, on Sunday said it would sell shares on the Saudi Exchange's Main Market through an initial public offering (IPO).

Dubai's main share index (.DFMGI) added 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) advancing 1%.

Separately, a growing number of wealth managers in Asia are setting up offices in Dubai, capitalising on warming diplomatic ties between China and the Middle East and betting on a surge in demand from clients for geographical diversification.

In Abu Dhabi, the index (.FTFADGI) was up 0.2%, helped by a 1.3% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) edged 0.1% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) gaining 0.6%.