Sunday, 10 March 2024
Egypt bourse hits record high after IMF deal, Aramco lifts #Saudi | Reuters
Egypt bourse hits record high after IMF deal, Aramco lifts Saudi | Reuters
Egyptian stocks closed at a record high on Sunday to lead Middle Eastern bourses, extending a rally set off by a new deal with the International Monetary Fund.
Egypt - the most populous Arab country - secured an expanded $8 billion deal on Wednesday with the IMF hours after the central bank hiked rates by 600 basis points and unshackled its currency, letting it slide, in a push to stabilise the economy.
The country's benchmark index (.EGX30), opens new tab finished 5.2% higher at 32,920 points, with most of its constituents rising, including top lender Commercial International Bank (COMI.CA), opens new tab, which was up 6.8%.
In late February, Egypt signed a deal with the United Arab Emirates (UAE) to develop a prime stretch of its Mediterranean coast that would bring $35 billion of investments to the indebted country.
Egyptian President Abdel Fattah al-Sisi said on Saturday that with tens of billions of dollars in new financing from the UAE and the IMF, moving to a flexible exchange rate would be possible.
Saudi Arabia's main index (.TASI), opens new tab added 0.3%, helped by a 1.4% rise in Saudi Aramco (2222.SE), opens new tab after the oil giant hiked its dividend despite drop in profit.
Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter. It expects to pay out $43.1 billion in performance-linked dividends this year, including $10.8 billion in the first quarter.
The base dividend was increased 4% year-on-year, and the performance-linked dividend was about 9% higher.
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The Qatari index (.QSI), opens new tab was up 0.1%.
Egyptian stocks closed at a record high on Sunday to lead Middle Eastern bourses, extending a rally set off by a new deal with the International Monetary Fund.
Egypt - the most populous Arab country - secured an expanded $8 billion deal on Wednesday with the IMF hours after the central bank hiked rates by 600 basis points and unshackled its currency, letting it slide, in a push to stabilise the economy.
The country's benchmark index (.EGX30), opens new tab finished 5.2% higher at 32,920 points, with most of its constituents rising, including top lender Commercial International Bank (COMI.CA), opens new tab, which was up 6.8%.
In late February, Egypt signed a deal with the United Arab Emirates (UAE) to develop a prime stretch of its Mediterranean coast that would bring $35 billion of investments to the indebted country.
Egyptian President Abdel Fattah al-Sisi said on Saturday that with tens of billions of dollars in new financing from the UAE and the IMF, moving to a flexible exchange rate would be possible.
Saudi Arabia's main index (.TASI), opens new tab added 0.3%, helped by a 1.4% rise in Saudi Aramco (2222.SE), opens new tab after the oil giant hiked its dividend despite drop in profit.
Aramco declared a base dividend, paid regardless of results, of $20.3 billion for the fourth quarter. It expects to pay out $43.1 billion in performance-linked dividends this year, including $10.8 billion in the first quarter.
The base dividend was increased 4% year-on-year, and the performance-linked dividend was about 9% higher.
The Qatari index (.QSI), opens new tab was up 0.1%.
Big companies heed #SaudiArabia’s demand to set up regional HQs
Big companies heed Saudi Arabia’s demand to set up regional HQs
Scores of multinationals have heeded Riyadh’s ultimatum to establish regional headquarters in Saudi Arabia or face losing out on lucrative government contracts, but leading banks have been conspicuous by their absence.
Scores of multinationals have heeded Riyadh’s ultimatum to establish regional headquarters in Saudi Arabia or face losing out on lucrative government contracts, but leading banks have been conspicuous by their absence.
PepsiCo, Boeing, PwC and Unilever are among the 350 global companies that complied with the edict and obtained regional headquarters licenses, according to Saudi Arabia’s investment ministry, while others such as Boeing have applied for them. But the likes of Citibank, Deutsche Bank, Goldman Sachs and HSBC are big names that have yet to announce they are doing so.
Large financial services companies often operate their Middle East businesses under a broader geographical area that includes Europe and Africa, and bankers have told the Financial Times that several lenders are uncomfortable with the regulatory implications of setting up a regional headquarters in the Gulf kingdom.
“It’s not only about whether you want to put people in Saudi Arabia, it’s what the regulatory framework is going to be,” said one senior financier at an international bank. Saudi Arabia was “not a financial centre set-up”, the financier added.
The Saudi edict, dubbed Programme HQ, came into force this year as Riyadh continued to pour money into its ambitious development plans under Crown Prince Mohammed bin Salman. The spending spree has made the Saudi capital a magnet for those keen to tap into the deals.
The kingdom has warned companies they would not be eligible for new government business if they failed to open a Saudi regional headquarters with at least 15 employees, including executives overseeing other countries.
#Oman’s sovereign ratings upgraded; outlook revised to stable
Oman’s sovereign ratings upgraded; outlook revised to stable
Oman’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) was raised to ‘BB+’ from ‘BB’ by Capital Intelligence Ratings (CI Ratings) on Friday. At the same time, CI Ratings has also affirmed the sovereign’s Short-Term FCR (ST FCR) and ST LCR at ‘B’. The Outlook for the ratings has been revised to Stable from Positive.
“The upgrade reflects the continued decline in gross central government debt and CI’s expectation that fiscal and external balances will remain in surplus in 2024-2025, benefitting from favourable hydrocarbon prices and sustained reform momentum,” CI Ratings. Said in a statement on Friday.
“The improvement in the public finances is supported by prudent fiscal and debt management policies. the latter aim to reduce the budget’s vulnerability to fluctuations in oil prices and lower central government debt significantly through the use of recent hydrocarbon windfalls to repay, prepay and buyback expensive external debt,” the international rating agency further said.
“The ratings are also supported by Oman’s commitment to structural reforms as outlined in Oman Vision 2040, as well as the relative soundness of the banking system and CI’s expectation that financial support for the sovereign would be forthcoming from other GCC countries in the event of need,” it further added.
Oman’s Long-Term Foreign Currency Rating (LT FCR) and Long-Term Local Currency Rating (LT LCR) was raised to ‘BB+’ from ‘BB’ by Capital Intelligence Ratings (CI Ratings) on Friday. At the same time, CI Ratings has also affirmed the sovereign’s Short-Term FCR (ST FCR) and ST LCR at ‘B’. The Outlook for the ratings has been revised to Stable from Positive.
“The upgrade reflects the continued decline in gross central government debt and CI’s expectation that fiscal and external balances will remain in surplus in 2024-2025, benefitting from favourable hydrocarbon prices and sustained reform momentum,” CI Ratings. Said in a statement on Friday.
“The improvement in the public finances is supported by prudent fiscal and debt management policies. the latter aim to reduce the budget’s vulnerability to fluctuations in oil prices and lower central government debt significantly through the use of recent hydrocarbon windfalls to repay, prepay and buyback expensive external debt,” the international rating agency further said.
“The ratings are also supported by Oman’s commitment to structural reforms as outlined in Oman Vision 2040, as well as the relative soundness of the banking system and CI’s expectation that financial support for the sovereign would be forthcoming from other GCC countries in the event of need,” it further added.
Aramco hikes dividend 30% to $98 bln despite drop in profit | Reuters
Aramco hikes dividend 30% to $98 bln despite drop in profit | Reuters
Saudi Arabia's state-owned oil giant Aramco (2222.SE), opens new tab boosted its dividend despite net profit falling 24.7% to $121.3 billion in 2023 on lower oil prices and volumes, showing the state's continued reliance on oil revenue as it seeks to diversify.
The profit, down from $161.1 billion in 2022, was still the company's second-highest on record, Aramco said on Sunday as it reported total dividends for the year of $97.8 billion, up 30%. Oil revenues made up 62% of total state revenues last year.
The Saudi government, which directly holds about 82.2% of Aramco, relies heavily on the oil giant's generous payouts, which also include royalties and taxes. The world's top oil exporter is spending billions of dollars trying to diversify its economy and find alternative sources of wealth having relied on oil for decades.
"Our balance sheet remains strong, even after our significant growth programme and dividend payouts," Chief Executive Amin Nasser said.
Saudi Arabia's state-owned oil giant Aramco (2222.SE), opens new tab boosted its dividend despite net profit falling 24.7% to $121.3 billion in 2023 on lower oil prices and volumes, showing the state's continued reliance on oil revenue as it seeks to diversify.
The profit, down from $161.1 billion in 2022, was still the company's second-highest on record, Aramco said on Sunday as it reported total dividends for the year of $97.8 billion, up 30%. Oil revenues made up 62% of total state revenues last year.
The Saudi government, which directly holds about 82.2% of Aramco, relies heavily on the oil giant's generous payouts, which also include royalties and taxes. The world's top oil exporter is spending billions of dollars trying to diversify its economy and find alternative sources of wealth having relied on oil for decades.
"Our balance sheet remains strong, even after our significant growth programme and dividend payouts," Chief Executive Amin Nasser said.