Gulf bourses close lower ahead of Q3 earnings, regional tensions | Reuters

Gulf bourses close lower ahead of Q3 earnings, regional tensions | Reuters

Stock markets in the Gulf ended lower on Thursday as investors await more third-quarter earnings amid escalating geopolitical tensions in the region and softening oil prices.

Lately the markets have been under pressure on worries that Israel would attack Iran in retaliation for the latter's Oct. 1 missile strike.

Russia is warning Israel to not even consider striking Iranian nuclear facilities, state news agency TASS quoted Deputy Foreign Minister Sergei Ryabkov as saying on Thursday.

The statement was attached to a Washington Post article which said Netanyahu had told President Joe Biden's administration that Israel would strike Iranian military targets, not nuclear or oil targets.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1.1%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 1.8% and Al Rajhi Bank (1120.SE), opens new tab sliding 2.9%.

The kingdom's crude oil exports in August fell to their lowest level in a year, data from the Joint Organizations Data Initiative (JODI) showed on Thursday.

Among other fallers, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - were broadly flat as investors waited on developments in the Middle East, the release of official U.S. oil inventory data and details on China's stimulus plans.

Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, with top lender Emirates NBD (ENBD.DU), opens new tab declining 2.7% after reporting a flat third-quarter net profit, as an increase in net interest income was offset by higher impairment charges and investments to drive future growth.

In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.3%, weighed down by a 1.8% drop in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab ahead of its earnings announcement.

The Qatari index (.QSI), opens new tab finished flat, with Commercial Bank (COMB.QA), opens new tab retreating 2.2% after the lender posted a mere 2.6% increase in nine-month net profit.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded 1.3% lower, with tobacco monopoly Eastern Company (EAST.CA), opens new tab tumbling 6.3%.

#SaudiArabia Finance Hub: KAFD Seeks To Raise $700 Million to Expand - Bloomberg

Saudi Arabia Finance Hub: KAFD Seeks To Raise $700 Million to Expand - Bloomberg

Saudi Arabia’s main finance district — almost three times the size of London’s Canary Wharf — is looking to raise about $700 million from equity investors to fund further development of its Riyadh real estate complex.

The King Abdullah Financial District, or KAFD, is planning to raise the money by putting some of its income-generating buildings into a real estate investment trust and offering a stake to investors through a listing on the Saudi stock exchange, according to people familiar with the matter.

The final amount raised could be closer to $750 million, one of the people said, asking not to be named discussing information that isn’t public.

Citigroup Inc., HSBC Holdings Plc, and Al Rajhi Capital have been hired as advisers on the deal, the people said, asking not to be identified as the information is private. No final decisions have been made on terms, including the size of the potential fundraise, they said.

Some of the proceeds from any deal would be used to fund further development of the district that’s been under construction for over a decade, the people said. The move comes as the Public Investment Fund looks to encourage its portfolio companies to find new sources of finance, and not rely on cash injections from the sovereign fund.

The transaction also attempts to revitalize Saudi Arabia’s REIT market to investors, one of the people said.

KAFD and Al Rajhi Capital didn’t respond to requests for comment. Citigroup and HSBC declined to comment.

Saudi Arabia’s powerful sovereign wealth fund took over KAFD in 2018 as part of plans to turn around the project, which at the time was years behind schedule and without any major tenants. The government had said it planned to turn the district into a special economic zone, although that has not happened yet.

Instead, KAFD has benefited from the influx of foreign firms looking to expand in the country after the government said this year that it would only work with firms that established so-called regional headquarters in Riyadh. Since then, firms including Goldman Sachs Group Inc., Lazard Inc., and Mizuho Financial Group Inc. have received HQ licenses in Riyadh, although not all of them have opened offices in KAFD.

Plans for the REIT deal could be delayed after KAFD Chief Executive Officer Gautam Sashittal unexpectedly left the role earlier this month. Mohammed Turki Alsudairy, portfolio head for the local real estate investment division at the PIF, is currently acting CEO.

KAFD occupancy levels for completed buildings are now running at over 95%, although there are still several towers under construction in the district. It’s already home to many government-linked institutions including the PIF, the National Development Fund, and Saudi National Bank.

#Kuwait NBK posts 5.7% jump in Q3 2024 net profit

Kuwait NBK posts 5.7% jump in Q3 2024 net profit

National Bank of Kuwait (NBK), the Gulf country’s largest lender, posted 5.7% rise in Q3 2024 net profit attributable to owners at 165 million dinars ($538 million)

In a regulatory statement on the Kuwait stock exchange on Thursday, NBK said operating revenue was KWD 318.6 million versus KWD 298 million in the year-ago period.

For the nine-month period ending September 30, the lender made a net profit of KWD 457 million, primarily on higher operating income and lower provisions, that were partly offset by higher operating expenses and higher taxes.

#Dubai's Emirates NBD posts flat Q3 y/y net profit | Reuters

Dubai's Emirates NBD posts flat Q3 y/y net profit | Reuters

Emirates NBD (ENBD.DU), opens new tab, Dubai's biggest bank by assets, reported on Thursday flat third-quarter net profit, as an increase in net interest income was offset by higher impairment charges and investments to drive future growth.

Net profit for the July-to-September period was 5.2 billion dirhams ($1.42 billion), unchanged from the corresponding 2023 period, missing a mean analyst estimate of 6 billion dirhams, LSEG data showed.

The bank, majority-owned by the government of Dubai, reported a rise of 8% in net interest income to 8.5 billion dirhams, while non-funded income fell 15% to 3 billion dirhams.

Most Gulf central banks cut their key interest rates last month after the Federal Reserve decreased U.S. rates by half a percentage point, as most regional currencies are pegged to the U.S. dollar.

The Dubai lender earlier this year said it is focusing on growing its non-funded income amid expectations of interest rate cuts this year.

Total assets in the third quarter rose 14% on the year to 931 billion dirhams, while gross loans were up 6% at 508 billion and deposits were 13% higher, at 624 billion.

On a nine-month basis, the bank's ratio of non-performing loans improved to 3.9% from last year's 4.6%, boosted by "strong recoveries, writebacks, write-offs and repayments", it added.

Banks in the United Arab Emirates have, in recent years, benefited from higher interest rates and also profited from the Gulf region's growth plans as governments boost investment to diversify away from oil and tap different income sources.

In Dubai, which has become one of the world's fastest-growing cities and the Gulf region's economic hub, the property market has boomed amid a swift post-pandemic economic rebound, helped by relaxed residency rules.

Shares of the Dubai bank have risen 17.3% so far this year, outperforming its peers in the Gulf.

#Oman's OQ Exploration and Production raises $2 bln in IPO | Reuters

Oman's OQ Exploration and Production raises $2 bln in IPO | Reuters

OQEP, the exploration and production business of Oman's state oil group, has raised $2.03 billion from its initial public offering (IPO) on the local stock exchange, it said on Thursday, in the Gulf country's biggest ever listing.

OQEP, which is floating around 2 billion shares equal to a 25% stake, said in a statement the offering was priced at the top of its indicative range of 370-390 baizas per share and was oversubscribed by around 2.7 times, including anchor investors.

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman - a small non-OPEC oil producer - to diversify its economy and cut its debt.

It follows last year's IPOs of OQ's pipeline business (OQGN.OM), opens new tab, which raised $771 million, and oil and gas drilling business Abraj Energy Services (ABRJ.OM), opens new tab, which raised $244 million.

Logistics company Asyad Group is also planning an IPO of its Asyad Shipping subsidiary by the end of 2024, Reuters reported in July, citing sources.

Following the IPO, which is also set to be the Gulf region's biggest so far this year, OQEP will have a market capitalisation of around $8.1 billion, making it the largest company on the Muscat stock exchange, where shares are expected to start trading on or around Oct. 28, OQEP said.