Aramco Likely to Sell Debt This Year With Longer-Dated Focus - Bloomberg
Saudi Aramco may sell bonds this year as financial markets have improved and the company looks to offer longer-dated debt, according to the state oil producer’s finance chief.
The company could issue debt with a duration of 15 to 50 years, Chief Financial Officer Ziad Al-Murshed said at a conference in Riyadh. The ability to sell debt with that duration indicates investors see Aramco, which already has one 50-year bond, remaining relevant in the business of selling oil and natural gas for transport and chemicals production through at least 2070.
“Markets are becoming more stable, so you can expect us to be active in the market,” Al-Murshed said. “We’re always prioritizing longer-term over short-term” maturities. When asked if the company could sell bonds in 2024, he said that was “likely.”
Economies have been battered by persistent inflation and higher energy costs over the past few years as governments seeking to bounce back from the pandemic have contended with conflicts from Europe to the Middle East. As the world’s biggest crude exporter and OPEC’s leader, Saudi Arabia has been spearheading a cut in oil production to stop barrels from building up in storage and further pressuring prices.
Global oil markets have “sufficient” supply, Al-Murshed said. Spare crude production capacity is at about 3% of global demand, he added.
Separately, Al-Murshed declined to comment on the potential sale of Aramco shares by the Saudi government.
Monday, 19 February 2024
#SaudiArabia Wealth Fund PIF, Singapore’s PSA Consider Global Ports IPO - Bloomberg
Saudi Arabia Wealth Fund PIF, Singapore’s PSA Consider Global Ports IPO - Bloomberg
Saudi Global Ports Co., which is owned by the kingdom’s sovereign wealth fund and Singapore’s PSA International Pte, is considering an initial public offering in Riyadh, according to people familiar with the matter.
The port operator is one of the companies owned by the Public Investment Fund that’s being considered for an IPO later in 2024 or early next year, the people said, asking not to be identified as the information isn’t public. PSA is owned by Singapore state investor Temasek Holdings.
Details of the IPO such as size and timing are still being considered, the people said. Representatives for Saudi Global Ports, PIF, Temasek and PSA all declined to comment.
The PIF is in the midst of a drive to list several of its portfolio companies to raise funds to help diversify Saudi Arabia’s economy away from oil. The fund is a key pillar of Crown Prince Mohammed Bin Salman’s multi-trillion-dollar Vision 2030 plan.
The fund is also exploring an IPO of the kingdom’s largest medical procurement firm, Nupco, Bloomberg News reported in October. In 2023, it sold part of its stake in oil driller Ades Holding Co. in a $1.2 billion IPO, the kingdom’s largest that year.
Saudi Global Ports was set up in 2012 and operates container terminals in King Abdulaziz Port in Dammam on the country’s east coast, according to its website. The port is the largest container terminal on the Persian Gulf. It also manages Riyadh Dry Port.
Saudi Arabia is planning to invest $147 billion by 2030 in its transport and logistics industry as it looks to transform the kingdom into a global travel and logistics hub.
The kingdom’s IPO market has been active over the past two years, with high oil prices and increased international investor interest driving the positive sentiment even as share sales slumped globally.
Saudi Global Ports Co., which is owned by the kingdom’s sovereign wealth fund and Singapore’s PSA International Pte, is considering an initial public offering in Riyadh, according to people familiar with the matter.
The port operator is one of the companies owned by the Public Investment Fund that’s being considered for an IPO later in 2024 or early next year, the people said, asking not to be identified as the information isn’t public. PSA is owned by Singapore state investor Temasek Holdings.
Details of the IPO such as size and timing are still being considered, the people said. Representatives for Saudi Global Ports, PIF, Temasek and PSA all declined to comment.
The PIF is in the midst of a drive to list several of its portfolio companies to raise funds to help diversify Saudi Arabia’s economy away from oil. The fund is a key pillar of Crown Prince Mohammed Bin Salman’s multi-trillion-dollar Vision 2030 plan.
The fund is also exploring an IPO of the kingdom’s largest medical procurement firm, Nupco, Bloomberg News reported in October. In 2023, it sold part of its stake in oil driller Ades Holding Co. in a $1.2 billion IPO, the kingdom’s largest that year.
Saudi Global Ports was set up in 2012 and operates container terminals in King Abdulaziz Port in Dammam on the country’s east coast, according to its website. The port is the largest container terminal on the Persian Gulf. It also manages Riyadh Dry Port.
Saudi Arabia is planning to invest $147 billion by 2030 in its transport and logistics industry as it looks to transform the kingdom into a global travel and logistics hub.
The kingdom’s IPO market has been active over the past two years, with high oil prices and increased international investor interest driving the positive sentiment even as share sales slumped globally.
#UAE (#AbuDhabi/ #Dubai) Poised to Exit Watchdog FATF’s Dirty Money ‘Gray List’ - Bloomberg
UAE (Abu Dhabi/Dubai) Poised to Exit Watchdog FATF’s Dirty Money ‘Gray List’ - Bloomberg
The United Arab Emirates is poised to exit a global watchdog’s “gray list” as soon as this week, following a push to clamp down on illicit financial flows in and out of the oil-rich Gulf state.
Assessors from the Paris-based Financial Action Task Force conducted an on-site visit last month and subsequent feedback on the UAE’s action plan noted significant progress by the country, according to people familiar with the matter, who requested anonymity as the deliberations are private.
The UAE is expected to come off the list on Feb. 23, which is the final day of the FATF plenary in Paris, the people said. No final decisions have been made.
Bloomberg reported in October that delegates from at least three members of the FATF, who previously backed the UAE’s inclusion on a list of jurisdictions subject to more oversight, had supported the country’s delisting as early as February 2024.
“It would be unheard of to get to this final stage and not get removed from the list,” said David Lewis, the former FATF executive secretary who’s now a managing director at Kroll. “That said, FATF may still point to further work that needs to be done.”
The United Arab Emirates is poised to exit a global watchdog’s “gray list” as soon as this week, following a push to clamp down on illicit financial flows in and out of the oil-rich Gulf state.
Assessors from the Paris-based Financial Action Task Force conducted an on-site visit last month and subsequent feedback on the UAE’s action plan noted significant progress by the country, according to people familiar with the matter, who requested anonymity as the deliberations are private.
The UAE is expected to come off the list on Feb. 23, which is the final day of the FATF plenary in Paris, the people said. No final decisions have been made.
Bloomberg reported in October that delegates from at least three members of the FATF, who previously backed the UAE’s inclusion on a list of jurisdictions subject to more oversight, had supported the country’s delisting as early as February 2024.
“It would be unheard of to get to this final stage and not get removed from the list,” said David Lewis, the former FATF executive secretary who’s now a managing director at Kroll. “That said, FATF may still point to further work that needs to be done.”
#SaudiArabia’s GDP hits $1.07trln in nominal terms: Minister
Saudi Arabia’s GDP hits $1.07trln in nominal terms: Minister
Saudi Arabia’s GDP has risen from SR2.6 trillion ($690 billion) in nominal terms to over SR4 trillion ($1.07 trillion), and its standing among G20 countries has leapfrogged to number 16, said Khalid Al-Falih, Saudi Minister of Investment.
Commenting on the progress of Saudi Arabia against its investment targets under Vision 2030, he said that underpinning the GDP growth will be investment made in the kingdom.
Speaking at the third Saudi Capital Market Forum in Riyadh, he asserted gross capital formation has gone from less than 22% to close to 28% by the third quarter of 2023, with the target of the National Investment Strategy to grow capital formation in the kingdom to 30%.
FDI stocks grow 52%
Al-Falih noted that FDI stocks have grown by 52% since Vision 2030 was started, with year-on-year flows going from below 1% of GDP to over 3%, noting that the target is 4% of GDP.
Al-Falih made the comments at during a panel session with Faisal Alibrahim, Minister of Economy and Planning of Saudi Arabia, and Mohamed AlTuwaijri, Vice Chairman of the Board of Directors at the Saudi National Development Fund.
Saudi Arabia’s GDP has risen from SR2.6 trillion ($690 billion) in nominal terms to over SR4 trillion ($1.07 trillion), and its standing among G20 countries has leapfrogged to number 16, said Khalid Al-Falih, Saudi Minister of Investment.
Commenting on the progress of Saudi Arabia against its investment targets under Vision 2030, he said that underpinning the GDP growth will be investment made in the kingdom.
Speaking at the third Saudi Capital Market Forum in Riyadh, he asserted gross capital formation has gone from less than 22% to close to 28% by the third quarter of 2023, with the target of the National Investment Strategy to grow capital formation in the kingdom to 30%.
FDI stocks grow 52%
Al-Falih noted that FDI stocks have grown by 52% since Vision 2030 was started, with year-on-year flows going from below 1% of GDP to over 3%, noting that the target is 4% of GDP.
Al-Falih made the comments at during a panel session with Faisal Alibrahim, Minister of Economy and Planning of Saudi Arabia, and Mohamed AlTuwaijri, Vice Chairman of the Board of Directors at the Saudi National Development Fund.
Mideast Stocks: #Saudi index at 18-month high leads Gulf market gains
Mideast Stocks: Saudi index at 18-month high leads Gulf market gains
Most stock markets in the Gulf rose on Monday, led by the Saudi index closing at its highest since August 2022, despite fading chances of early rate cuts globally.
U.S. producer prices increased more than expected in January after strong gains in the cost of services that could stoke inflation.
Most stock markets in the Gulf rose on Monday, led by the Saudi index closing at its highest since August 2022, despite fading chances of early rate cuts globally.
U.S. producer prices increased more than expected in January after strong gains in the cost of services that could stoke inflation.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index gained 0.7%, rising for a thirteenth consecutive session, led by a 3.5% rise in ACWA Power.
Saudi Arabia's benchmark index gained 0.7%, rising for a thirteenth consecutive session, led by a 3.5% rise in ACWA Power.
The Saudi Stock Exchange and Saudi regulator the Capital Market Authority are reviewing more than 57 initial public offering (IPO) requests for the exchange and Saudi Parallel Market, Saudi Tadawul Group CEO Khalid Alhussan told Al Arabiya TV on Monday.
The Qatari benchmark finished 0.9% higher, with Qatar Islamic Bank rising 2.3% and Islamic lender Masraf Al Rayan increased 3.8%.
The Qatari benchmark finished 0.9% higher, with Qatar Islamic Bank rising 2.3% and Islamic lender Masraf Al Rayan increased 3.8%.
Dubai's main share index added 0.3%, driven by a 1.7% rise in top lender Emirates NBD.
The Dubai stock market, which has reached record highs, could remain on an uptrend as business activity supports robust performance expectations, Yousef Ayoub, head of sales at NCM, said, while adding traders would monitor ongoing geopolitical risks.
In Abu Dhabi, the index eased 0.2%.
The Dubai stock market, which has reached record highs, could remain on an uptrend as business activity supports robust performance expectations, Yousef Ayoub, head of sales at NCM, said, while adding traders would monitor ongoing geopolitical risks.
In Abu Dhabi, the index eased 0.2%.
Global oil benchmark Brent crude was little changed, hovering around $83 a barrel as continued conflict in the Middle East and the risk of supply disruption offset doubts about demand.
Outside the Gulf, Egypt's blue-chip index advanced 1.1%, with Talaat Mostafa Holding jumping 6.8%.
Mideast Stocks: Major Gulf markets fall on rate cut prospects
Mideast Stocks: Major Gulf markets fall on rate cut prospects
Most major stock markets in the Gulf fell in early trading on Monday after data showed U.S. producer prices increased more than expected in January, adding to concerns over inflation and dampening hopes for early rate cuts by the Federal Reserve.
U.S. producer prices increased more than expected in January amid strong gains in the cost of services, which could amplify inflation worries.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index dropped 0.4% and was on course to snap a 12-day winning streak, hit by a 1% fall in Al Rajhi Bank.
Elsewhere, oil behemoth Saudi Aramco eased 0.2%.
Oil prices - a catalyst for the Gulf's financial markets -fell as investor attention returned to the demand outlook on worries that sticky inflation and higher interest rates would limit fuel consumption growth.
The Qatari benchmark lost 0.4%, hit by a 5% slide in Qatar Fuel Company.
In Abu Dhabi, the index dropped 0.3%.
Dubai's main share index gained 0.2%, with top lender Emirates NBD gaining 0.8%.
Most major stock markets in the Gulf fell in early trading on Monday after data showed U.S. producer prices increased more than expected in January, adding to concerns over inflation and dampening hopes for early rate cuts by the Federal Reserve.
U.S. producer prices increased more than expected in January amid strong gains in the cost of services, which could amplify inflation worries.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index dropped 0.4% and was on course to snap a 12-day winning streak, hit by a 1% fall in Al Rajhi Bank.
Elsewhere, oil behemoth Saudi Aramco eased 0.2%.
Oil prices - a catalyst for the Gulf's financial markets -fell as investor attention returned to the demand outlook on worries that sticky inflation and higher interest rates would limit fuel consumption growth.
The Qatari benchmark lost 0.4%, hit by a 5% slide in Qatar Fuel Company.
In Abu Dhabi, the index dropped 0.3%.
Dubai's main share index gained 0.2%, with top lender Emirates NBD gaining 0.8%.