Saudi Shipper Folk Maritime Plans Massive Fleet Expansion - Bloomberg
Saudi cargo shipper Folk Maritime, owned by the kingdom’s sovereign wealth fund, plans to invest hundreds of millions of dollars to expand its fleet.
The shipping line aims to buy or charter 15 to 18 container ships over the next three to five years, Chief Executive Officer Poul Hestbaek said in an interview. The company operates just three vessels now.
Saudi Arabia, like other wealthy Persian Gulf energy producers, is working to transform its economy to curb reliance on oil sales and build up industries such as manufacturing, technology and tourism. In support of that plan, the country is adding transportation links to connect consumers, companies and travelers.
Folk, wholly owned by the Public Investment Fund, will buy about two-thirds of the ships it’s adding and charter the rest, Hestbaek said in the coastal city of Dhahran. The company bought its first vessel this year and leases two others.
Folk is expanding to link up the country’s smaller ports, alleviating demand for road transportation as the kingdom builds new domestic businesses to bolster the economy and add jobs.
“We are working on a long-term strategy,” Hestbaek said. “First and foremost, the geographical scope is the Red Sea, all the countries surrounding the Red Sea.”
The company will introduce three new routes next year to connect India to the Red Sea region, the Gulf and East Africa. That will add to the two routes it currently operates in the northern Red Sea.
Hestbaek declined to specify how much Folk may spend on the vessels. Container ships fetch tens of millions of dollars each, with the price varying according to the cost that shippers can charge for freight, he said.
Friday, 20 September 2024
#Dubai bourse extends gains on rate cut; #AbuDhabi falls | Reuters
Dubai bourse extends gains on rate cut; Abu Dhabi falls | Reuters
Dubai's stock market ended higher on Friday, extending gains from the previous session, after most central banks in the region cut their key interest rates mirroring the Federal Reserve, although the Abu Dhabi index eased.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday and projected a further half-point rate cut by year-end, a full point next year and a half-point trim in 2026.
The United Arab Emirates cut its base rate applied to the overnight deposit facility by 50 basis points on Wednesday, from 5.40% to 4.90%, the country's central bank said in a statement.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, advanced 4.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.7%, weighed by a 1.4% slide in conglomerate International Holding (IHC.AD), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - eased, but were on track to register gains for a second straight week following the Fed rate cut and declining global stockpiles.
Dubai's stock market ended higher on Friday, extending gains from the previous session, after most central banks in the region cut their key interest rates mirroring the Federal Reserve, although the Abu Dhabi index eased.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday and projected a further half-point rate cut by year-end, a full point next year and a half-point trim in 2026.
The United Arab Emirates cut its base rate applied to the overnight deposit facility by 50 basis points on Wednesday, from 5.40% to 4.90%, the country's central bank said in a statement.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, advanced 4.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.7%, weighed by a 1.4% slide in conglomerate International Holding (IHC.AD), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - eased, but were on track to register gains for a second straight week following the Fed rate cut and declining global stockpiles.