Gulf markets join global rally on Fed rate cut hopes; #Qatar leads | Reuters

Gulf markets join global rally on Fed rate cut hopes; Qatar leads | Reuters

Stock markets in the Gulf tracked global peers higher on Thursday, led by the Qatar index, as the optimism around potential U.S. interest rate cuts raised investors' risk appetite.

Data on Wednesday showed lower growth in the U.S. services industry and bolstered optimism over the potential easing of monetary policy. Sentiment was aided by a reaffirmation from Federal Reserve Chair Jerome Powell that U.S. rates were still on course to be cut this year, though the timing was data-dependent.

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

The Qatari benchmark index (.QSI), opens new tab advanced 1.3%, the highest intraday rise in three months, with most sectors posting gains, led by industry, real estate and finance.

Qatar Islamic Bank (QISB.QA), opens new tab and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, rose 1.8% and 1.4%, respectively, while Industries Qatar (IQCD.QA), opens new tab gained 2.8%.

But the index was down for the third week in a row.

Saudi Arabia's benchmark stock index (.TASI), opens new tab rose for the fourth straight session, up 0.7%, with most of its constituents posting gains.

Saudi Basic Industries (2010.SE), opens new tab gained 2.7% and ACWA Power (2082.SE), opens new tab climbed 4.3%, while the kingdom's largest lender, Saudi National Bank (1180.SE), opens new tab and Etihad Etisalat (7020.SE), opens new tab added 1% and 3.6%, respectively.

In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab rose 0.3%, lifted by a 2.3% gain in Multiply Group (MULTIPLY.AD), opens new tab and a 1.2% rise in First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender. National Marine Dredging (NMDC.AD), opens new tab and Presight AI Holding (PRESIGHT.AD), opens new tab increased 1.9% and 7.4%, respectively.

Dubai's benchmark index (.DFMGI), opens new tab edged up 0.2%, helped by gains in industry and utilities sectors with tolls operator Salik Company (SALIK.DU), opens new tab rising 3% and Mashreqbank (MASB.DU), opens new tab climbing 4.7%. Emirates NBD (ENBD.DU), opens new tab, the emirate's biggest lender, however, slipped 1.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 2%, with almost all stocks in the green, including Talaat Mostafa (TMGH.CA), opens new tab and Commercial International Bank (COMI.CA), opens new tab, which rose 5.3% and 1.3%, respectively.

#Saudi Crown Prince MBS' $100 Billion Quest for Foreign Investment Falters - Bloomberg

Saudi Crown Prince MBS' $100 Billion Quest for Foreign Investment Falters - Bloomberg

At a gleaming white hangar on Saudi Arabia’s western coast last year, the kingdom’s business and political elite gathered to applaud one of Crown Prince Mohammed bin Salman’s riskiest bets yet.

The first electric cars assembled in Saudi Arabia with Lucid Group Inc. twinkled under factory spotlights, designed to show the world how a kingdom built on oil could draw in foreign capital to become a global hub for the industries of the future.

The short-term reality is more complicated. California-based Lucid is increasingly guzzling Saudi money to stay in business. Last week it got a $1 billion cash lifeline from the kingdom, on top of the $5.4 billion Saudi Arabia’s Public Investment Fund (PIF) has already pumped in.

Lucid, which counts the PIF as its top shareholder, had been held up as an example of foreign firms investing in Saudi Arabia’s multi-trillion-dollar “Vision 2030” economic transformation plan. But Lucid’s need for Saudi money is one sign the country’s rushed attempt at reinvention is being paid for out of pocket, with the kingdom relying heavily on its oil riches to entice firms in.

“The government had to give Lucid tremendous incentives to come,” said Karen Young, a Gulf-focused political economist at the Columbia University Center on Global Energy Policy.

It also speaks of the difficulties foreign companies face in Saudi Arabia, a country with little experience of complex manufacturing or heavy industry beyond the petroleum sector.

“Lucid is fully committed to our long-term partnership with the PIF and supporting the goals of Saudi Arabia’s Vision 2030,” Chief Executive Officer Peter Rawlinson said in a statement to Bloomberg. “Lucid is creating hundreds, and eventually thousands, of new employment opportunities for Saudi talent.”

The PIF did not respond to a request for comment.

PIF-backed Riyad Bank considering IPO of investment banking unit | Reuters

PIF-backed Riyad Bank considering IPO of investment banking unit | Reuters

Saudi Arabia's Riyad Bank, the kingdom's third biggest lender by assets, said on Thursday its board was considering an initial public offering of its investment banking arm, Riyad Capital.

The lender, which is backed by the kingdom's sovereign wealth fund and the government, said its board issued a resolution to assess the unit's readiness, which includes determining the size and structure of any potential IPO.

Should there be a decision to proceed, the deal would be subject to regulatory approvals, the filing said.

Riyad Bank is 21.75% owned by the Public Investment Fund and 10.39% owned by the government of Saudi Arabia.

Gulf markets have been riding an IPO boom over the last two years on high oil prices and foreign institutional investor interest, bucking a global dealmaking slump caused in part by high interest rates.

Major Gulf markets up in early trade on Fed rate hopes | Reuters

Major Gulf markets up in early trade on Fed rate hopes | Reuters

Major stock markets in the Gulf were up in early trade on Thursday on optimism about potential U.S. interest rate cuts, even as the timing of the move remained uncertain.

Data on Wednesday showed lower growth in the U.S. services industry and bolstered optimism over the potential easing of monetary policy. Federal Reserve Chair Jerome Powell's reaffirmation about lowering rates also aided sentiment.

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

The Qatari benchmark index (.QSI), opens new tab advanced 0.9%, supported by gains in almost all stocks with Qatar Islamic Bank (QISB.QA), opens new tab climbing 1.2% and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, rising 1.7%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, with most constituents in the green, led by materials and IT stocks.

Saudi Basic Industries (2010.SE), opens new tab gained 2.3% and Sahara International Petrochemical(2310.SE), opens new tab climbed 4.3%, while the kingdom's largest mobile operator, Saudi Telecom (7010.SE), opens new tab and e-services provider, Elm Company (7203.SE), opens new tab added 1% and 1.7%, respectively.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.4%, lifted by gains in most sectors with tolls operator Salik Company (SALIK.DU), opens new tab adding 2.2% and Mashreqbank (MASB.DU), opens new tab surging 7.6%.