#Saudi Stocks Trail Emerging Peers for First Time Since Pandemic - Bloomberg

Saudi Stocks Trail Emerging Peers for First Time Since Pandemic - Bloomberg

Saudi stocks are lagging emerging-market peers for the first time since the pandemic as tensions in the Middle East mount and the kingdom dials down plans for a sprawling desert construction project.

The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge so far this year, the first time it’s trailed in the period since 2020 when tumbling demand battered oil prices. Once again, Saudi shares are tracking a drop in crude, while authorities have reportedly scaled back the futuristic Neom development — a major driver for several sectors in the market in the past few years.

Pressure is also coming from outside the country as the war in Gaza fans fears of a broader conflict. Concern the Federal Reserve won’t cut rates as fast as hoped is weighing too — Saudi Arabia’s central bank, like others in the Gulf, largely follows US interest-rate decisions to protect its dollar peg.

“Lower oil prices as well as escalating regional geopolitical issues that affected almost all sectors on the exchange” have caused the disconnect, said Junaid Ansari,​ director of investment strategy and research at Kamco Investment Co. “Conflicting messages” about Saudi projects also hurt sentiment, resulting in foreigners being net sellers last month, he said.

Fitch upgrades Ras Al Khaimah’s credit rating to A+ from the previous A

Fitch upgrades Ras Al Khaimah’s credit rating to A+ from the previous A

Ras Al Khaimah’s credit rating has been upgraded to ‘A+’ from the previous ‘A’, by the international credit rating agency Fitch Ratings. The upgrade reflects the emirate’s improved credit metrics driven by stronger medium-term growth forecasts. The growth forecasts for the emirate are based on large investment projects and further economic diversification.

Ras Al Khaimah’s mega tourism projects, including world-class hotels, luxurious beach resorts and high-end leisure facilities are seen as promising opportunities for investors and a catalyst to attract further investment into the Emirate, increasing its economic resilience, according to Fitch Ratings, one of the ‘Big Three’ credit ratings agencies.

These projects have played a key role in boosting investor confidence and Ras Al Khaimah is projected to continue to attract global investments, resulting in growth forecasts of 6.2% in 2024 and 5% in 2025 for the emirate.

Commenting on the upgraded rating, a spokesperson for Ras Al Khaimah Government, said, “Ras Al Khaimah’s A+ credit rating is owed to the strong economic fundamentals of the emirate, based on the vision and directives of our leadership. The emirate has experienced significant growth over several years to become an attractive investment and tourism hub, and an ideal destination to live, work and explore.”

Mideast Stocks: Most Gulf markets dip as oil prices tumble

Mideast Stocks: Most Gulf markets dip as oil prices tumble

Most stock markets in the Gulf ended lower on Tuesday as oil prices fell on expectations that lingering U.S. inflation could keep interest rates higher for longer, depressing consumer and industrial demand. U.S. Federal Reserve officials said on Monday they were awaiting more signs of slowing inflation before considering interest rate cuts.

Oil prices, a catalyst for the Gulf's financial markets, dropped by more than $1 with Brent trading at $82.46 a barrel by 1300 GMT.

The Abu Dhabi benchmark index slipped 0.3% with conglomerate Alpha Dhabi Holding declining 4.8% and Abu Dhabi Commercial Bank sliding 2.6%. Among other losers, First Abu Dhabi Bank shed 0.8%, after the UAE's largest lender was reported to be in advanced talks to acquire Turkish conglomerate Koc Group's 61.2% stake in Yapi Kredi for about $8 billion.

Saudi Arabia's benchmark stock index fell marginally with Al Rajhi Bank, the world's largest Islamic lender, shedding 0.8% and ACWA Power falling 1.9%, while Saudi Arabian Mining and Saudi Electricity gained 2.4% and 4.7% respectively.

The Qatari benchmark index rose 0.4%, helped by a 1.1% gain in Qatar National Bank, the region's largest lender and a 1.2% increase in Qatar Islamic Bank. Meanwhile, major gas producer Qatar has received over $10 billion in orders for its green bonds sale.

Dubai's benchmark index was up after four straight sessions of losses to end 0.2% higher, supported by gains in real estate and industry sectors. The blue-chip developer Emaar Properties surged 4.4% and tolls operator Salik Company climbed 1.5%. Elsewhere, the International Monetary Fund said on Monday the United Arab Emirates was experiencing strong economic growth, with overall real GDP projected to grow by about 4% this year, higher than earlier estimates.

Outside the Gulf, Egypt's blue-chip index was steady with Talaat Mostafa falling 2.6% while E-finance for Digital climbed 4.6%. Separately, Egypt's central bank is likely to leave overnight interest rates unchanged when its monetary policy committee meets on Thursday, its first meeting since Egypt signed an $8 billion agreement with the IMF in March.

#Qatar Selling First Eurobond in Four Years and Debut Green Deal - Bloomberg

Qatar Selling First Eurobond in Four Years and Debut Green Deal - Bloomberg

Qatar is selling its first dollar bonds in four years and its debut green deal, as one of the world’s largest liquefied natural gas exporters seeks to tap into a booming global market for sustainable debt.

The government is selling green bonds with maturities of five and 10 years, according to people familiar with the matter. Initial spread guidance is 70 basis points over US Treasuries for the short tranche and 80 basis points for the longer one.

The final terms, including the pricing and size, will probably be announced later on Tuesday.

Green bonds from the Middle East have gained traction in the past few years, with investors piling into sales from the likes of Saudi Arabia’s wealth fund, Abu Dhabi’s main property company and the government of Sharjah.

Qatar is yet to announce a timeline for zeroing out its carbon emissions and is one of the world’s highest per capita emitters of planet-warming gases. Like other nations in the Gulf, it uses plenty of energy on air conditioning and to desalinate water.

Yet it is spending billions of dollars to ramp up solar power. It also argues that gas is a fuel that will help with global climate goals because it’s cleaner than oil or coal, though the industry is associated with methane leaks.

Qatar is one of the richest countries in the world and has a rating of AA or its equivalent — the third-highest possible — from all three major ratings companies.

It last came to the eurobond market in April 2020, raising $10 billion after attracting $45 billion of orders from investors.

The main banks arranging the latest deal are Crédit Agricole AS, HSBC Holdings Plc, JPMorgan Chase & Co. and Qatar National Bank.

#Dubai Airport Sees Record Passengers After Adding Destinations - Bloomberg

Dubai Airport Sees Record Passengers After Adding Destinations - Bloomberg

Dubai International Airport predicted a record number of passengers for this year, surpassing its busiest inflow in 2018, as the emirate attracts more visitors and the hub’s main carriers, Emirates and Flydubai, expand their networks.

Passenger numbers will rise to 91 million in 2024, beating the previous record of 89.1 million set in 2018, the airport operator said in a statement on Tuesday. Dubai International said it saw a record 23 million guests passing through its terminals in the first quarter, with India remaining the top destination, followed by Saudi Arabia, the UK, and Pakistan.

The growth was “thanks in part to the proliferation of cities being added to our network by our home base carriers Emirates and Flydubai, in recent months,” Dubai Airports Chief Executive Officer Paul Griffiths said in the statement.

In order to accommodate its growth plans, Dubai’s government is proceeding with a $35 billion expansion of its second hub, Al Maktoum International Airport, in anticipation of a spike in visitors. The airfield already exists but caters mainly to cargo and some low-cost services for the time being.

Exclusive: Emirati bank FAB in advanced talks to buy Turkey's Yapi Kredi, sources say | Reuters

Exclusive: Emirati bank FAB in advanced talks to buy Turkey's Yapi Kredi, sources say | Reuters

First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab is in advanced talks to acquire Turkish conglomerate Koc Group's (KCHOL.IS), opens new tab 61.2% stake in Istanbul-based lender Yapi Kredi (YKBNK.IS), opens new tab for about $8 billion, according to three sources close to the matter.

Final details of the potential deal for Turkey's fourth-biggest private bank are being hammered out after several months of negotiations, the sources said on condition of anonymity because the talks are confidential.

Shares in Yapi Kredi soared 10% after the news emerged, while Koc Holding jumped more than 9%, both touching record highs. FAB shares slipped slightly.

One of the sources said that Turkish conglomerate Koc had sought about $8.5 billion for its shares in Yapi Kredi and that FAB had offered about $7.5 billion.
FAB, the United Arab Emirates' largest bank by assets, declined to comment.

In a statement to the Istanbul bourse, Koc Holding referenced the Reuters report and said it was holding preliminary talks on the sale of Yapi Kredi shares, adding it can always negotiate "to evaluate possible alternatives" in its portfolio.

Most Gulf bourses muted on doubts over US rate moves | Reuters

Most Gulf bourses muted on doubts over US rate moves | Reuters

Most stock markets in the Gulf were subdued in early trading on Tuesday after comments from U.S. Federal Reserve officials cast doubt over the timing of potential U.S. interest rate cuts this year.

Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, dragged down by losses in finance, healthcare and energy.

Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, shed 0.8%, and Aldrees Petroleum (4200.SE), opens new tab dropped 2.6%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab sliding 1.8% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab slipping 1.9%.

The Qatari benchmark index (.QSI), opens new tab fell 0.2%, pressured by a 1.2% drop in United Development Co (UDCD.QA), opens new tab and a 0.8% loss in Commercial Bank (COMB.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.6%, lifted by gains in finance, real estate and industry, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 2.7% and tolls operator Salik Company (SALIK.DU), opens new tab adding 1.8%.

Several U.S. Fed officials on Monday signalled continued caution on interest rate policy and inflation, putting a dent in risk sentiment.

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.