#Qatar extends gains in 16-day rally while most Gulf shares dip | Reuters

Qatar extends gains in 16-day rally while most Gulf shares dip | Reuters

Most equities in the Gulf slipped on Tuesday ahead of a key U.S. inflation print later this week, with Abu Dhabi shares falling after two days in the green while the Qatar index continued its upward momentum.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down 0.2% after two straight sessions of gains, pressured by a 0.9% drop in conglomerate International Holding Co (IHC.AD), opens new tab and a 1.2% decline in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab.

RAK White Cement (RAKWCT.AD), opens new tab advanced 3.6% after the Aditya Birla Group-owned UltraTech Middle East Investment acquired a 25% stake in the cements maker and raised its ownership to 54.4%.

Dubai's benchmark stock index (.DFMGI), opens new tab was slightly down with blue-chip developer Emaar Properties (EMAR.DU), opens new tab sliding 1.1% and Mashreqbank (MASB.DU), opens new tab dropping 1%, while Dubai Islamic Bank (DISB.DU), opens new tab and tolls operator Salik Company (SALIK.DU), opens new tab gained 1.2% each.

The Qatari benchmark index (.QSI), opens new tab advanced 0.6%, extending its gains to a sixteenth session, the longest rally in nearly 18 years.

"The surge, driven by robust domestic buying, follows a period of decline that saw stock prices reaching multi-year lows," said Hani Abuagla, senior market analyst at XTB MENA.

"The rebound in natural gas prices and improvements in the non-oil private sector activity have boosted the market sentiment."

Qatar National Bank, the region's largest lender, gained 1.1% and Industries Qatar (IQCD.QA), opens new tab added 0.5%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors. United International Transportation Company (4260.SE), opens new tab advanced 4.3% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.

Among other gainers, Methanol Chemicals (2001.SE), opens new tab climbed 5.2%. The chemicals producer, Methanol has signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.

Investors await U.S. personal consumption expenditures (PCE) price index due on Friday for clues on the Federal Reserve's interest rate policy.

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 rose 1.3% with all of its constituents posting gains. GB Corp (GBCO.CA), opens new tab surged 15.8% and Talaat Mostafa Group (TMGH.CA), opens new tab climbed 4.3%.

Meanwhile, Egypt and the European Union are set to sign a 1 billion euro ($1.07 billion) agreement for macro financial assistance, the Egyptian Ministry of International Cooperation said.

#UAE to Follow Gulf Neighbors With First Eurobond Since September - Bloomberg

UAE to Follow Gulf Neighbors With First Eurobond Since September - Bloomberg

The United Arab Emirates is selling its first eurobonds since September, offering investors 10-year dollar debt.

The final terms, including the size and yield, will probably be announced later on Tuesday, according to a person familiar with the matter.

The oil-rich UAE has one of the highest credit ratings of any sovereign. It’s rated Aa2 by Moody’s Investors Service, the same as the UK and South Korea.

This will be only the country’s fourth eurobond as a federal entity. Though, Abu Dhabi, the capital, sold $5 billion of debt in April. The 10-year portion of that deal was priced with a yield of 5.04% and a spread of 45 basis points over comparable US Treasuries. It currently trades around 4.8%.

The UAE government has enjoyed a boom in the past few years thanks to high oil and natural-gas revenues. It’s one of the world’s richest countries and among just a few to mange over $1 trillion in sovereign-wealth funds.

While it doesn’t need to raise money from the bond market, the new deal could be aimed at improving liquidity in the debt curve, according to Zeina Rizk, co-head of fixed income at Amwal Capital Partners in Dubai. Investors are often more likely to trade a country’s bonds if it has plenty of maturities outstanding.

“It might just be to remain in the market, to keep the curve liquid,” Rizk said. “There is a lot of technical demand.”

Gulf nations have been particularly active in the international bond market this year, taking advantage of high demand. Saudi Arabia has sold $17 billion of debt, the most of any emerging market. Qatar and Bahrain have also tapped the market.

Credit Agricole SA, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Charted Plc are the main banks arranging the UAE’s bond.

#SaudiArabia Set to Become World’s Biggest Construction Market - Bloomberg

Saudi Arabia Set to Become World’s Biggest Construction Market - Bloomberg

Saudi Arabia is set to become the world’s largest construction market as the kingdom pours vast amounts of money into projects aimed at overhauling and diversifying the economy, according to real estate consultancy group Knight Frank.

The country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels, the London-based firm said in a research report published Monday.

Much of that is likely to come from residential property and so-called giga projects, alongside other developments that form part of Crown Prince Mohammed bin Salman’s mission to transform the oil-dependent economy. The plan, known as Vision 2030, will need to cater for a growing population to succeed, as well as an expected influx of foreign tourists.

“We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.

Since the Vision 2030 initiative was introduced eight years ago, Saudi Arabia has launched projects with a value of more than $1.25 trillion, according to Knight Frank’s research.

While most are not yet delivered and some have been downsized, the kingdom is working on overdrive as the 2030 deadline edges ever closer.

In 2023 alone, more than $140 billion of construction contract awards were granted, according to Knight Frank. The majority of those were in Riyadh, where Saudi Arabia aims to grow its population to 10 million by 2030.

The capital city has become a major focal point as the kingdom prepares to host the World Expo in 2030 — and possibly the World Cup in 2034.

Most Gulf bourses up in early trade; US inflation data eyed | Reuters

Most Gulf bourses up in early trade; US inflation data eyed | Reuters

Equities in the Gulf were up in early trading on Tuesday, ahead of a key U.S. inflation print later this week, while the Qatar index continued its upward momentum.

The Qatari benchmark index (.QSI), opens new tab advanced 0.7%, extending its rally to a sixteenth session, lifted by gains in sectors such as energy, materials and finance stocks.

Qatar Islamic Bank (QISB.QA), opens new tab rose 1.6% and Qatar Gas Transport (QGTS.QA), opens new tab added 1.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.2%, after oscillating between gains and losses in early trade.

Saudi National Bank, the kingdom's largest lender, slipped 1.4% while United International Transportation Company (4260.SE), opens new tab, also known as Bugdet Saudi, advanced 4.2% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.

Among other gainers, Methanol Chemicals (2001.SE), opens new tab rose 4.6% after the methanol derivatives producer signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, aided by a 1.4% gain in Abu Dhabi Commercial Bank (ADCB.AD), opens new tab and a 3.3% rise in Alef Education(ALEFEDT.AD), opens new tab.

ADNOC Drilling (ADNOCDRILL.AD), opens new tab gained 0.7% after the driller confirmed a new enhanced dividend policy that will see at least $4.8 billion distributed to shareholders between 2024 and 2028.

Dubai's benchmark stock index (.DFMGI), opens new tab was little changed, with tolls operator Salik Company (SALIK.DU), opens new tab gaining 1.2% and Dubai Islamic Bank (DISB.DU), opens new tab rising 0.9%, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab slid 0.9%.

In the U.S., the personal consumption expenditures (PCE) price index is due on Friday. Softer data would likely reinforce market bets of a Federal Reserve rate cut as early as September, with futures currently pricing in a 65% chance.

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.