Gulf bourses end lower on heightened regional tensions | Reuters

Gulf bourses end lower on heightened regional tensions | Reuters

Stock markets in the Gulf ended lower on Thursday as markets weighed the risk of a widening conflict in the region, with the Dubai index falling for a fifth consecutive session.

Israel's military on Thursday urged residents of over 20 towns in south Lebanon to evacuate their homes immediately, as it pressed on with an incursion after suffering its worst losses in a year of fighting Iran-backed armed group Hezbollah.

As it pushes into south Lebanon, Israel is also weighing its options for retaliation against Iran.

The Islamic Republic launched its largest ever assault on Israel on Tuesday, in what it said was retaliation for Israel's assassination of senior Hamas and Hezbollah leaders and its operations in Gaza and Lebanon.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.7%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 0.9% and Al Rajhi Bank (1120.SE), opens new tab falling 0.9%.

The Saudi index registered its biggest weekly loss of 3.4% since May.

Dubai's main share index (.DFMGI), opens new tab retreated 1%, weighed by a 2.3% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.

Among other losers, budget airliner Air Arabia (AIRA.DU), opens new tab slid 2.9%.

In Abu Dhabi, the index (.FTFADGI), opens new tab declined 1%.

On the other hand, oil prices - a catalyst for the Gulf's financial markets - rose on investor concern that a widening Middle East conflict could disrupt crude oil flows from the region, though a stronger global supply outlook kept a lid on gains.

The Qatari benchmark (.QSI), opens new tab also fell 1%, with telecoms firm Ooredoo (ORDS.QA), opens new tab losing 4%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.2%, as most of its constituents were in positive territory.

#Saudi Prince Alwaleed’s Kingdom Holding Resumes Work on World’s Tallest Tower - Bloomberg

Saudi Prince Alwaleed’s Kingdom Holding Resumes Work on World’s Tallest Tower - Bloomberg

A Saudi Arabian firm backed by billionaire Prince Alwaleed bin Talal is resuming work on a tower that’s set to soar to 1,000 meters when complete, making it the world’s tallest skyscraper.

Kingdom Holding, majority owned by Prince Alwaleed, said Wednesday it will resume construction on the tower in Jeddah, more than a decade after the project was first conceived.

Designed to imitate the contours of a sprouting desert plant, the building was the brainchild of American architect Adrian Smith. It’s set to include a Four Seasons hotel, apartments, offices, three lobbies on the upper floors and the world’s highest observation deck on the 157th level.

The tower stood half built for years amid funding constraints. Its developers now say construction will take 42 months, and 63 of 157 floors have been built. When complete, the building will top the current record holder, Dubai’s Burj Khalifa — which was unveiled in 2010 and stands at 828 meters.

Riyadh-based Kingdom said an associate firm, Jeddah Economic Co., has signed a 7.2 billion riyals ($1.9 billion) agreement with Saudi Binladin Group to resume construction of the Jeddah Economic Company Tower. Any remaining costs will be financed through internal resources and banking facilities, according to Jeddah.

Originally dubbed ‘Kingdom Tower’, the structure was designed to rise from three separate bases in continuous slopes that end at different heights to help balance the building’s weight and stabilize it against the wind. It’s the centerpiece of an economic city which is set to include offices, homes, retail and hospitality developments.

Infrastructure development for the first phase which spans 1.3 million square meters, has been executed. That includes electricity, water, sewage, flood drainage, and high-speed internet connectivity.

When finished, the structure will join an exclusive list of so-called mega-tall skyscrapers — buildings 600 meters or taller, according to The Council on Tall Buildings and Urban Habitat. Only four of these currently exist. The Burj Khalifa, Merdeka 118 in Kuala Lumpur, Shanghai Tower and the Makkah Royal Clock Tower in the Saudi holy city of Mecca.

#Saudi’s non-oil sector improves in September on rise in output, new orders – PMI

Saudi’s non-oil sector improves in September on rise in output, new orders – PMI

Expansions in outputs and new orders, along with a tightening of supply conditions, gave Saudi Arabia’s non-oil economy a boost in September, which reflected in a 1.5-point rise in the kingdom’s Purchasing Manager’s Index (PMI) for the second consecutive month.

The Riyad Bank PMI rose to 56.3 last month, up from August’s 54.8, indicating the highest PMI reading for Saudi following a sluggish summer period that started in May.

The latest reading also inched closer to Saudi’s long-running average of 56.9, as the rate of activity growth accelerated, with sales momentum showing further improvement.

“The rise in Saudi Arabia’s PMI to 56.3 shows the highest level in four months, highlighting a notable acceleration in non-oil private sector growth,” Naif Al-Ghaith PhD, Chief Economist at Riyad Bank, said. “Businesses are responding to stronger domestic demand, which plays a critical role in reducing Saudi Arabia’s dependence on oil revenues.”

Al-Ghaith said the growth in the non-oil sector was particularly significant given the current context of oil production cuts and declining global oil prices.

“As oil revenues come under pressure, the robust performance of the non-oil private sector serves as a buffer, helping to mitigate the potential impact on the country's economic health. The diversification of revenue streams is crucial for maintaining growth amid fluctuating oil markets,” he added.

New order volumes increased over improving domestic demand, although survey respondents also reported on a boost in new export orders.

Employment numbers also improved along with business conditions, although firms reported difficulties in finding skilled staff, leading to capacity shortfalls.

Survey respondents also flagged concerns over increased competition, warning of a softening in future output expectations, as well as a third successive reduction in selling charges.

Reports suggested that rises in material prices, technology costs and wages drove higher expenses.

Inventories at non-oil businesses continued to rise during September, leading some firms to reassess purchasing levels. Consequently, the rate of purchasing growth fell to its lowest in three years.

Growth in #UAE’s non-oil business sector slows in September - PMI

Growth in UAE’s non-oil business sector slows in September - PMI

Growth in UAE’s non-oil business activities witnessed the weakest expansion in three years at the end of September, with reducing new orders and less employment opportunities impacting the overall output.

The seasonally adjusted S&P Global UAE Purchasing Managers' Index (PMI) dipped to 53.8 in September from 54.2 in August.

"The UAE PMI continued to show a loss of momentum in the non-oil private sector, with growth having softened considerably since the start of the year,” said David Owen, senior economist at S&P Global Market Intelligence.

With new order growth softening, businesses reported fewer hires in September, driving the mildest rise in total employment since the end of 2022.

Though rising demand had boosted output, business activity rose at the slowest pace since September 2021. New business levels received by non-oil firms rose at a sharp pace during the latest survey period, helped by a solid increase in export sales and reports of strong local market conditions.

Business owners cited that competition hampered sales and tougher market conditions prompted businesses to have a cautious outlook.

Input costs were also up sharply in September, with businesses noting high price pressures from sources including transportation, machinery, technology, petrol and labour. However, the rate of overall cost inflation eased to the weakest since April.

Dubai PMI

The Dubai PMI signalled a robust expansion in business conditions across the non-oil private sector in September.

Overall activity levels rose at the fastest pace in four months, despite a slower upturn in new business volumes.

The expansion led non-oil businesses to increase staffing and inventories to greater degrees than in August.