Saudi Arabia IPOs: Aramco Secondary Offering Weighs on Fakeeh Care’s Debut - Bloomberg
Saudi Aramco’s $12 billion secondary share sale took the shine off the kingdom’s biggest initial public offering of the year.
Saudi health-care group Dr. Soliman Abdel Kader Fakeeh Hospital Co. closed 10% above its offer price of 57.5 riyals ($15.3) in Riyadh on Wednesday as Aramco’s offering drained liquidity from the market. That’s the smallest first-day gain for a listing in the kingdom raising at least $100 million in the past 12 months, data compiled by Bloomberg show.
Fakeeh Care Group’s performance jars with the overwhelming demand for its 2.86 billion-riyal IPO. Institutional investors put in 341 billion riyals of orders, or 119 times the shares made available to them, which was one of the highest levels of demand for an IPO in the kingdom raising at least $500 million in the last five years.
The oil giant Aramco’s secondary offering — one of the world’s biggest in recent years — was sold out shortly after the deal opened.
Recent large stock offerings like those in Aramco and Adnoc Drilling Co. have weighed on liquidity in Middle Eastern markets, along with a rush of IPOs across the region, as investors save their cash for those listings.
Benchmark indexes in Saudi Arabia and Abu Dhabi are lagging global peers this year, with mounting geopolitical tensions and the prospect of higher-for-longer interest rates weighing on sentiment.
In the last year, just two other Saudi IPOs have failed to rise by the maximum 30% allowed on the first day of trading, First Milling Co. and SAL Saudi Logistics Services, according to data compiled by Bloomberg.
To be sure, Fakeeh Care Group’s performance would not be considered below average in most other markets, such as in Europe, where the average first-day gain for IPOs of $100 million or more in the last year was just 7.4%, the data show.
Wednesday, 5 June 2024
#SaudiArabia’s Chip Design Ambitions Take Shape With New Hub - Bloomberg
Saudi Arabia’s Chip Design Ambitions Take Shape With New Hub - Bloomberg
Saudi Arabia launched a new strategy aimed at making itself a hub for semiconductor design as the country looks to develop the industry as a means to diversify its economy away from crude oil.
The kingdom announced the National Semiconductor Hub Wednesday to develop so-called fabless chip companies that design new semiconductors.
The goal is to draw 50 firms to the kingdom by 2030 and the focus will be on simple chips — rather than cutting-edge and politically-sensitive technologies — and manufacturing will be done internationally, at least in the medium-term, according to Naveed Sherwani, head of the new hub.
“We’re not trying to replace Nvidia or challenge Intel,” said Sherwani, who spoke to Bloomberg on the sidelines of the Future of Semiconductors Forum in Riyadh. “We want to do humble beginnings. Once we have built a base, then we can talk.”
The initiative underscores the increasing importance of semiconductors for Saudi Arabia as Crown Prince Mohammed bin Salman seeks to tap into new industries that will help the country draw in more revenue from non-oil activities.
Saudi Arabia launched a new strategy aimed at making itself a hub for semiconductor design as the country looks to develop the industry as a means to diversify its economy away from crude oil.
The kingdom announced the National Semiconductor Hub Wednesday to develop so-called fabless chip companies that design new semiconductors.
The goal is to draw 50 firms to the kingdom by 2030 and the focus will be on simple chips — rather than cutting-edge and politically-sensitive technologies — and manufacturing will be done internationally, at least in the medium-term, according to Naveed Sherwani, head of the new hub.
“We’re not trying to replace Nvidia or challenge Intel,” said Sherwani, who spoke to Bloomberg on the sidelines of the Future of Semiconductors Forum in Riyadh. “We want to do humble beginnings. Once we have built a base, then we can talk.”
The initiative underscores the increasing importance of semiconductors for Saudi Arabia as Crown Prince Mohammed bin Salman seeks to tap into new industries that will help the country draw in more revenue from non-oil activities.
#SaudiArabia joins BIS- and China-led central bank digital currency project | Reuters
Saudi Arabia joins BIS- and China-led central bank digital currency project | Reuters
Saudi Arabia has joined a China-dominated central bank digital currency cross-border trial, in what could be another step towards less of the world's oil trade being done in U.S. dollars.
The move, announced by the Bank for International Settlements on Wednesday, will see Saudi's central bank become a "full participant" of Project mBridge, a collaboration launched in 2021 between the central banks of China, Hong Kong, Thailand and the United Arab Emirates.
The BIS, a global central bank umbrella organisation which oversees the project, also announced that mBridge had reached "minimum viable product" stage, meaning it will move beyond the pro type phase.
Roughly 135 countries and currency unions, representing 98% of global GDP, are exploring central bank digital currencies, or CBDCs. But the new technologies they use makes cross-border movement both technically challenging and politically sensitive.
Saudi Arabia has joined a China-dominated central bank digital currency cross-border trial, in what could be another step towards less of the world's oil trade being done in U.S. dollars.
The move, announced by the Bank for International Settlements on Wednesday, will see Saudi's central bank become a "full participant" of Project mBridge, a collaboration launched in 2021 between the central banks of China, Hong Kong, Thailand and the United Arab Emirates.
The BIS, a global central bank umbrella organisation which oversees the project, also announced that mBridge had reached "minimum viable product" stage, meaning it will move beyond the pro type phase.
Roughly 135 countries and currency unions, representing 98% of global GDP, are exploring central bank digital currencies, or CBDCs. But the new technologies they use makes cross-border movement both technically challenging and politically sensitive.
Gulf markets end mixed; Egypt slips | Reuters
Gulf markets end mixed; Egypt slips | Reuters
Stock markets in the Gulf were mixed on Wednesday amid steady oil prices, while soft U.S. labor market data reaffirmed expectations of an interest rate cut by the Federal Reserve in September.
Oil prices, a catalyst for the Gulf's financial markets, edged up 0.7% after hitting near four-month lows in the previous session, with Brent trading at $78.07 a barrel at 1300 GMT.
The Qatari benchmark stock index (.QSI), opens new tab rose 0.3%, gaining for a fifth straight session, supported by a 1.9% increase in Industries Qatar (IQCD.QA), opens new tab and a 0.7% rise in Qatar Gas Transport (QGTS.QA), opens new tab.
Meanwhile, energy giant QatarEnergy signed a deal to supply Taiwan's state-owned oil firm CPC with liquefied natural gas (LNG) for 27 years.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.3%, with Aldar Properties (ALDAR.AD), opens new tab rising 2% and conglomerate International Holding Co (IHC) (IHC.AD), opens new tab up 1.5% to 414.50 dirham per share, its highest level since listing in October 2005. IHC is part of a business empire including climate fund Alterra, overseen by its chair Sheikh Tahnoon bin Zayed al-Nahyan.
Alterra will mobilise an additional $200 billion in investments over the next six years, COP28 President Sultan Al Jaber said on Tuesday.
Saudi Arabia's benchmark index (.TASI), opens new tab slipped 0.5%, with most of its constituents posting losses. ACWA Power (2082.SE), opens new tab dropped 2.7% and Middle East Pharmaceutical (4016.SE), opens new tab slid 2.1%.
However, shares of Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab jumped 10.1% to 63.30 riyals from its IPO price of 57.5 riyals per share in its market debut.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, dragged down by losses in industry, utilities and communications stocks. Tolls operator Salik Company (SALIK.DU), opens new tab slipped 3.3% and Gulf Navigation Holding (GNAV.DU), opens new tab slid 1.6%.
Data showed U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supports a Fed rate cut this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab retreated 1.3%, with all sectors in the red. Abu Qir Fertilizers (ABUK.CA), opens new tab slid 4.9% and Sidi Kerir Petrochemicals (SKPC.CA), opens new tab declined 4.8%.
Several Egyptian fertilizer factories, including Abu Qir and Sidi Kerir, shut down temporarily over pressures on the national gas grid.
Stock markets in the Gulf were mixed on Wednesday amid steady oil prices, while soft U.S. labor market data reaffirmed expectations of an interest rate cut by the Federal Reserve in September.
Oil prices, a catalyst for the Gulf's financial markets, edged up 0.7% after hitting near four-month lows in the previous session, with Brent trading at $78.07 a barrel at 1300 GMT.
The Qatari benchmark stock index (.QSI), opens new tab rose 0.3%, gaining for a fifth straight session, supported by a 1.9% increase in Industries Qatar (IQCD.QA), opens new tab and a 0.7% rise in Qatar Gas Transport (QGTS.QA), opens new tab.
Meanwhile, energy giant QatarEnergy signed a deal to supply Taiwan's state-owned oil firm CPC with liquefied natural gas (LNG) for 27 years.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.3%, with Aldar Properties (ALDAR.AD), opens new tab rising 2% and conglomerate International Holding Co (IHC) (IHC.AD), opens new tab up 1.5% to 414.50 dirham per share, its highest level since listing in October 2005. IHC is part of a business empire including climate fund Alterra, overseen by its chair Sheikh Tahnoon bin Zayed al-Nahyan.
Alterra will mobilise an additional $200 billion in investments over the next six years, COP28 President Sultan Al Jaber said on Tuesday.
Saudi Arabia's benchmark index (.TASI), opens new tab slipped 0.5%, with most of its constituents posting losses. ACWA Power (2082.SE), opens new tab dropped 2.7% and Middle East Pharmaceutical (4016.SE), opens new tab slid 2.1%.
However, shares of Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab jumped 10.1% to 63.30 riyals from its IPO price of 57.5 riyals per share in its market debut.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, dragged down by losses in industry, utilities and communications stocks. Tolls operator Salik Company (SALIK.DU), opens new tab slipped 3.3% and Gulf Navigation Holding (GNAV.DU), opens new tab slid 1.6%.
Data showed U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness that supports a Fed rate cut this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab retreated 1.3%, with all sectors in the red. Abu Qir Fertilizers (ABUK.CA), opens new tab slid 4.9% and Sidi Kerir Petrochemicals (SKPC.CA), opens new tab declined 4.8%.
Several Egyptian fertilizer factories, including Abu Qir and Sidi Kerir, shut down temporarily over pressures on the national gas grid.
#AbuDhabi Royal’s Firms Drag Benchmark Stock Index to Worst Year Since 2011 - Bloomberg
Abu Dhabi Royal’s Firms Drag Benchmark Stock Index to Worst Year Since 2011 - Bloomberg
Abu Dhabi stocks are lagging global peers as companies tied to a powerful royal drag down the index after supporting it for several years.
The benchmark FTSE ADX General Index has dropped every single month of 2024 so far, putting it on track for a second year of losses and the worst annual performance since 2011.
That’s a massive reversal from the bull run between early 2020 and late 2022, when the emirate’s stocks soared amid a rally fueled by companies tied to the Sheikh Tahnoon bin Zayed Al Nahyan — one of Abu Dhabi’s two deputy rulers, national security adviser of the United Arab Emirates and brother to its president. The sheikh’s companies or those he oversees have a weighting of at least 66% on the benchmark.
The gauge has dropped about 7% this year so far, underperforming the MSCI Emerging Markets Index and all regional peers except Qatar. Emirates Telecommunications Group Co. is the biggest drag on the index. It’s followed by Alpha Dhabi Holding, First Abu Dhabi Bank, Multiply Group and Abu Dhabi National Energy Co. — all of which are firms linked to Sheikh Tahnoon.
The UAE stock market has rapidly expanded since 2020 amid a rush of initial public offerings — mostly sold to local investors — and led by companies tied to Sheikh Tahnoon.
Abu Dhabi stocks are lagging global peers as companies tied to a powerful royal drag down the index after supporting it for several years.
The benchmark FTSE ADX General Index has dropped every single month of 2024 so far, putting it on track for a second year of losses and the worst annual performance since 2011.
That’s a massive reversal from the bull run between early 2020 and late 2022, when the emirate’s stocks soared amid a rally fueled by companies tied to the Sheikh Tahnoon bin Zayed Al Nahyan — one of Abu Dhabi’s two deputy rulers, national security adviser of the United Arab Emirates and brother to its president. The sheikh’s companies or those he oversees have a weighting of at least 66% on the benchmark.
The gauge has dropped about 7% this year so far, underperforming the MSCI Emerging Markets Index and all regional peers except Qatar. Emirates Telecommunications Group Co. is the biggest drag on the index. It’s followed by Alpha Dhabi Holding, First Abu Dhabi Bank, Multiply Group and Abu Dhabi National Energy Co. — all of which are firms linked to Sheikh Tahnoon.
The UAE stock market has rapidly expanded since 2020 amid a rush of initial public offerings — mostly sold to local investors — and led by companies tied to Sheikh Tahnoon.
Fakeeh IPO: #Saudi’s Biggest Listing of the Year Rises in Riyadh Debut - Bloomberg
Fakeeh IPO: Saudi’s Biggest Listing of the Year Rises in Riyadh Debut - Bloomberg
Saudi health-care group Dr. Soliman Abdel Kader Fakeeh Hospital Co. rose in its debut as Riyadh’s biggest listing of the year after the company’s initial public offering attracted $91 billion in orders.
Shares in the hospital operator reached as high as 63.2 riyals on Wednesday, up 9.9% from the offer price of 57.5 riyals per share, which was at the top of a marketed range. The company, along with the founding family, raised 2.86 billion riyals ($763 million) through the listing.
Investors are piling into the shares of Fakeeh Care Group amid a flurry of public offerings, with Saudi Arabia’s stock exchange saying last month that over 50 firms have applied for listings. Separately, recent share sales in the kingdom’s health-care sector have performed generally well, generating at least $16.7 billion of wealth for their top shareholders, based on stake values.
In a secondary offering that launched earlier this week, the government gathered enough orders within hours to cover the $12 billion worth of Saudi Aramco shares it is selling.
Fakeeh Care Group drew Abu Dhabi Investment Authority and Olayan Saudi Investment Co. as cornerstone investors, agreeing to subscribe for 1.04 million shares and 1.96 million shares, respectively. It was the first time the Abu Dhabi wealth fund is participating in a Saudi IPO as a cornerstone investor.
The company was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centers. It plans to expand to seven hospitals with 1,675 beds and nine medical centers by 2028 to capitalize on the kingdom’s growing population, which is expected to hit about 40 million by 2030.
HSBC Holdings Plc is acting as sole financial adviser and joint bookrunner together with anb capital and EFG Hermes. Moelis & Co. is advising the selling shareholders.
Saudi health-care group Dr. Soliman Abdel Kader Fakeeh Hospital Co. rose in its debut as Riyadh’s biggest listing of the year after the company’s initial public offering attracted $91 billion in orders.
Shares in the hospital operator reached as high as 63.2 riyals on Wednesday, up 9.9% from the offer price of 57.5 riyals per share, which was at the top of a marketed range. The company, along with the founding family, raised 2.86 billion riyals ($763 million) through the listing.
Investors are piling into the shares of Fakeeh Care Group amid a flurry of public offerings, with Saudi Arabia’s stock exchange saying last month that over 50 firms have applied for listings. Separately, recent share sales in the kingdom’s health-care sector have performed generally well, generating at least $16.7 billion of wealth for their top shareholders, based on stake values.
In a secondary offering that launched earlier this week, the government gathered enough orders within hours to cover the $12 billion worth of Saudi Aramco shares it is selling.
Fakeeh Care Group drew Abu Dhabi Investment Authority and Olayan Saudi Investment Co. as cornerstone investors, agreeing to subscribe for 1.04 million shares and 1.96 million shares, respectively. It was the first time the Abu Dhabi wealth fund is participating in a Saudi IPO as a cornerstone investor.
The company was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centers. It plans to expand to seven hospitals with 1,675 beds and nine medical centers by 2028 to capitalize on the kingdom’s growing population, which is expected to hit about 40 million by 2030.
HSBC Holdings Plc is acting as sole financial adviser and joint bookrunner together with anb capital and EFG Hermes. Moelis & Co. is advising the selling shareholders.
Perfume Retailer Arabian Oud Said to Hire Banks for #Saudi IPO - Bloomberg
Perfume Retailer Arabian Oud Said to Hire Banks for Saudi IPO - Bloomberg
Perfume retailer Arabian Oud has hired banks for a planned initial public offering in Saudi Arabia, according to people familiar with the matter.
The company has picked Emirates NBD Capital and SNB Capital for the potential share sale, the people said, asking not to be identified as the information isn’t public. Details such as timing and valuation are still under discussion and subject to change, the people said.
Representatives for SNB Capital declined to comment. Arabian Oud and Emirates NBD didn’t respond to requests for comment.
Founded by Sheikh Abdul Aziz Al-Jasir in 1982, Arabian Oud has 1200 stores across 37 countries and calls itself the world’s largest supplier of oriental fragrances, according to its website.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud is planning to go public at a time deals are running hot in Saudi Arabia. Four recent IPOs in the kingdom drew a combined $176 billion in institutional investor orders as newly listed companies have continued to perform well.
Perfume retailer Arabian Oud has hired banks for a planned initial public offering in Saudi Arabia, according to people familiar with the matter.
The company has picked Emirates NBD Capital and SNB Capital for the potential share sale, the people said, asking not to be identified as the information isn’t public. Details such as timing and valuation are still under discussion and subject to change, the people said.
Representatives for SNB Capital declined to comment. Arabian Oud and Emirates NBD didn’t respond to requests for comment.
Founded by Sheikh Abdul Aziz Al-Jasir in 1982, Arabian Oud has 1200 stores across 37 countries and calls itself the world’s largest supplier of oriental fragrances, according to its website.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud is planning to go public at a time deals are running hot in Saudi Arabia. Four recent IPOs in the kingdom drew a combined $176 billion in institutional investor orders as newly listed companies have continued to perform well.
#UAE's non-oil business growth retains slower pace in May, PMI shows | Reuters
UAE's non-oil business growth retains slower pace in May, PMI shows | Reuters
Capacity constraints weighed on non-oil business activity in the United Arab Emirates in May with output growth at its slowest in 16 months, a survey showed on Wednesday.
The seasonally-adjusted S&P Global UAE Purchasing Managers' Index stood at 55.3 in May, unchanged from April's reading which was the lowest since August last year.
The output sub-index retreated to 60.8 in May, from 63.2 the previous month, its slowest rate of expansion since January 2023.
New sales growth picked up in May, with the sub index for new orders rising to 58.7 from 56.0 in April, but the rise was the second weakest since August last year.
While demand momentum improved after the disruption of April's unprecedented floods, some respondents reported that sales volumes were slow to recover, while backlogs of work rose at the fastest pace since the survey began in 2009 on the back of capacity constraints.
"The findings suggest that firms have a lot of work to do to get on top of their workloads, including rebuilding output levels, hiring workers and boosting inventories," David Owen, senior economist at S&P Global Market Intelligence, said.
"Nonetheless, with demand still strong, firms should be in a good position to resume their robust growth once capacity has been restored," he added.
Despite a slowdown in activity growth, optimism among respondents for future output was broadly upbeat, supported by stabilising economic conditions and higher sales, among others.
Capacity constraints weighed on non-oil business activity in the United Arab Emirates in May with output growth at its slowest in 16 months, a survey showed on Wednesday.
The seasonally-adjusted S&P Global UAE Purchasing Managers' Index stood at 55.3 in May, unchanged from April's reading which was the lowest since August last year.
The output sub-index retreated to 60.8 in May, from 63.2 the previous month, its slowest rate of expansion since January 2023.
New sales growth picked up in May, with the sub index for new orders rising to 58.7 from 56.0 in April, but the rise was the second weakest since August last year.
While demand momentum improved after the disruption of April's unprecedented floods, some respondents reported that sales volumes were slow to recover, while backlogs of work rose at the fastest pace since the survey began in 2009 on the back of capacity constraints.
"The findings suggest that firms have a lot of work to do to get on top of their workloads, including rebuilding output levels, hiring workers and boosting inventories," David Owen, senior economist at S&P Global Market Intelligence, said.
"Nonetheless, with demand still strong, firms should be in a good position to resume their robust growth once capacity has been restored," he added.
Despite a slowdown in activity growth, optimism among respondents for future output was broadly upbeat, supported by stabilising economic conditions and higher sales, among others.
#Saudi Aramco holding LNG talks with US firms Tellurian, NextDecade, sources say | Reuters
Saudi Aramco holding LNG talks with US firms Tellurian, NextDecade, sources say | Reuters
Oil giant Aramco (2222.SE), opens new tab is in talks with U.S. firms Tellurian (TELL.A), opens new tab and NextDecade (NEXT.O), opens new tab on two separate liquefied natural gas (LNG) projects as the Saudi firm seeks to boost its gas trading and production, three sources close to the talks told Reuters.
U.S. gas production has boomed over the past decade with oil majors and Aramco's rivals such as Qatar Energy competing to build several projects to export gas to Europe and Asia.
The state energy firm is in talks with Tellurian (TELL.A), opens new tab to buy a stake in its 27.6 million metric ton per annum (mtpa) Driftwood LNG plant near Lake Charles, Louisiana.
Aramco officials visited the site three times this year - including together with executives from Australia's Woodside on one of those occasions, said the sources who declined to be identified as talks are not public.
Aramco is also in talks with U.S. LNG firm NextDecade (NEXT.O), opens new tab for a long-term gas purchase agreement from a proposed fifth processing unit at its $18 billion Rio Grande facility.
Oil giant Aramco (2222.SE), opens new tab is in talks with U.S. firms Tellurian (TELL.A), opens new tab and NextDecade (NEXT.O), opens new tab on two separate liquefied natural gas (LNG) projects as the Saudi firm seeks to boost its gas trading and production, three sources close to the talks told Reuters.
U.S. gas production has boomed over the past decade with oil majors and Aramco's rivals such as Qatar Energy competing to build several projects to export gas to Europe and Asia.
The state energy firm is in talks with Tellurian (TELL.A), opens new tab to buy a stake in its 27.6 million metric ton per annum (mtpa) Driftwood LNG plant near Lake Charles, Louisiana.
Aramco officials visited the site three times this year - including together with executives from Australia's Woodside on one of those occasions, said the sources who declined to be identified as talks are not public.
Aramco is also in talks with U.S. LNG firm NextDecade (NEXT.O), opens new tab for a long-term gas purchase agreement from a proposed fifth processing unit at its $18 billion Rio Grande facility.
Most Gulf markets rise on Fed rate cut bets | Reuters
Most Gulf markets rise on Fed rate cut bets | Reuters
Most stock markets in the Gulf tracked Asian peers higher in early trading on Wednesday after softer U.S. labor market data reaffirmed expectations of an interest rate cut by the Federal Reserve in September.
Data on Tuesday showed that U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, with the conglomerate International Holding Company (IHC.AD), opens new tab adding 0.6% and First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, gaining 1%.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1%, aided by gains in finance, real estate and consumer discretionary sectors, with Mashreqbank (MASB.DU), opens new tab rising 1% and Emaar Properties (EMAR.DU), opens new tab adding 0.5%.
Meanwhile, capacity constraints weighed on non-oil business activity in the United Arab Emirates in May with output growth at its slowest in 16 months, a survey showed on Wednesday.
The Qatari benchmark index (.QSI), opens new tab rose 0.2%, supported by a 1.2% rise in Industries Qatar (IQCD.QA), opens new tab and a 0.8% gain in Qatar Gas Transport (QGTS.QA), opens new tab.
Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.7%, dragged down by losses in all sectors. Saudi Arabian Mining (1211.SE), opens new tab dropped 1.7% and ACWA Power (2082.SE), opens new tab slid 2.4%.
However, shares of Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab rose 10% to 63.20 riyals compared with its IPO price of 57.5 riyals per share in its market debut.
Most stock markets in the Gulf tracked Asian peers higher in early trading on Wednesday after softer U.S. labor market data reaffirmed expectations of an interest rate cut by the Federal Reserve in September.
Data on Tuesday showed that U.S. job openings fell to their lowest level in more than three years in April, signaling an easing in labor market tightness.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, with the conglomerate International Holding Company (IHC.AD), opens new tab adding 0.6% and First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, gaining 1%.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1%, aided by gains in finance, real estate and consumer discretionary sectors, with Mashreqbank (MASB.DU), opens new tab rising 1% and Emaar Properties (EMAR.DU), opens new tab adding 0.5%.
Meanwhile, capacity constraints weighed on non-oil business activity in the United Arab Emirates in May with output growth at its slowest in 16 months, a survey showed on Wednesday.
The Qatari benchmark index (.QSI), opens new tab rose 0.2%, supported by a 1.2% rise in Industries Qatar (IQCD.QA), opens new tab and a 0.8% gain in Qatar Gas Transport (QGTS.QA), opens new tab.
Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.7%, dragged down by losses in all sectors. Saudi Arabian Mining (1211.SE), opens new tab dropped 1.7% and ACWA Power (2082.SE), opens new tab slid 2.4%.
However, shares of Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab rose 10% to 63.20 riyals compared with its IPO price of 57.5 riyals per share in its market debut.