Kuwait Names CEO and CFO for New Dubai-Based Oil Trading Arm - Bloomberg
Kuwait Petroleum Corp.’s oil trading unit appointed company veteran Abdullatif Almukhaizeem as chief executive officer, taking the division closer to starting operations just as a clutch of Gulf state-run majors are expanding in the industry.
Robert Johnson, formerly with BP Plc and Klesch Group, has been named chief financial officer of KPC Trading Ltd., the unit’s Chairman Sheikh Khaled Al-Malik Al-Sabah said. He also confirmed an earlier Bloomberg report that former Vitol SA executive Yann Elbaz was hired as chief commercial officer.
Kuwait Petroleum established the unit last May. That followed similar moves by fellow producers in Saudi Arabia, Abu Dhabi and Oman which have boosted their trading of fuels, rather than ceding that business to traditional commodity merchants such as Trafigura and Vitol. Refinery expansions in the region are giving the Middle East companies more volumes for trading and to better compete with rivals from outside the region.
KPC Trading is expected to start operations in the second quarter of this year, Al-Sabah said. The company “is set to establish its position in international markets, strengthening Kuwait’s role in the global energy trade,” he said.
Almukhaizeem, who has been at Kuwait Petroleum since the late 1990s, previously headed the company’s offices in Singapore, China and London, and has helped advance its commercial capabilities. Elbaz, a veteran distillates trader, will help drive KPC Trading’s commercial strategy, while Johnson brings expertise in financial management, corporate governance and risk management, Al-Sabah said.
Kuwait Petroleum previously said KPC Trading will boost sales of jet fuel and diesel to Europe after commissioning the expanded 615,000-barrel-a-day Al-Zour refinery. It may also trade fuel from other producers.
Kuwait’s efforts to establish a trading unit go back to at least 2017, but didn’t take off partly because of political dissent. Since then, the country has added refining capacity, giving it more fuels to sell.
Apart from Al-Zour, which is running at full tilt, a new 230,000-barrel-a-day joint-venture refinery at Duqm on Oman’s Arabian Sea coast is also operating at full capacity and processing crude from Oman and Kuwait. Oman’s OQ Trading is currently handling sales from the refinery for the partners until Kuwait’s trading unit is fully up and running.
Friday, 31 January 2025
Mashreq Bank lifts #Dubai, #AbuDhabi edges up | Reuters #UAE
Mashreq Bank lifts Dubai, Abu Dhabi edges up | Reuters
Stock markets in the United Arab Emirates closed higher on Friday, with Dubai leading the charge, driven by gains in banking stocks.
Dubai's main index (.DFMGI), opens new tab extended gains to a second session with a 0.5% increase, lifted by a 10.4% surge in Mashreq Bank (MASB.DU), opens new tab, which logged its biggest intraday gains in a year.
Mashreq Bank reported an 11% growth in fourth-quarter net profit to 3.14 billion dirhams ($855 million), while revenue rose 49% year-on-year.
However, Dubai Financial Market (DFM.DU), opens new tab slid 6.4%, its steepest intraday loss in nearly two years, after the firm slashed its annual dividend to 3.2% of capital from 3.5% last year.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged up 0.03%, finishing its straight third session in the green, supported by a 1.3% rise in Adnoc Drilling (ADNOCDRILL.AD), opens new tab and a 0.8% increase in UAE's third-largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab.
Among gainers, Abu Dhabi's largest listed firm International Holding Company (IHC.AD), opens new tab gained 0.3% after its subsidiary Ghitha Holding (GHITHA.AD), opens new tab reported 2.56 billion dirhams in full-year profit against 30 million dirhams last year.
The Dubai index recorded a 0.4% gain in January, steadily rising for the eighth month, while Abu Dhabi continued its rally to a second month with a 1.8% rise, per LSEG data.
Oil prices, a key contributor to the Gulf's economies, drifted lower on Friday as markets waited to see if U.S. President Donald Trump follows through on his threat to impose tariffs on Mexico and Canada this weekend.
Brent crude was down 0.33% at $76.62 a barrel by 1141 GMT.
Stock markets in the United Arab Emirates closed higher on Friday, with Dubai leading the charge, driven by gains in banking stocks.
Dubai's main index (.DFMGI), opens new tab extended gains to a second session with a 0.5% increase, lifted by a 10.4% surge in Mashreq Bank (MASB.DU), opens new tab, which logged its biggest intraday gains in a year.
Mashreq Bank reported an 11% growth in fourth-quarter net profit to 3.14 billion dirhams ($855 million), while revenue rose 49% year-on-year.
However, Dubai Financial Market (DFM.DU), opens new tab slid 6.4%, its steepest intraday loss in nearly two years, after the firm slashed its annual dividend to 3.2% of capital from 3.5% last year.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged up 0.03%, finishing its straight third session in the green, supported by a 1.3% rise in Adnoc Drilling (ADNOCDRILL.AD), opens new tab and a 0.8% increase in UAE's third-largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab.
Among gainers, Abu Dhabi's largest listed firm International Holding Company (IHC.AD), opens new tab gained 0.3% after its subsidiary Ghitha Holding (GHITHA.AD), opens new tab reported 2.56 billion dirhams in full-year profit against 30 million dirhams last year.
The Dubai index recorded a 0.4% gain in January, steadily rising for the eighth month, while Abu Dhabi continued its rally to a second month with a 1.8% rise, per LSEG data.
Oil prices, a key contributor to the Gulf's economies, drifted lower on Friday as markets waited to see if U.S. President Donald Trump follows through on his threat to impose tariffs on Mexico and Canada this weekend.
Brent crude was down 0.33% at $76.62 a barrel by 1141 GMT.
Thursday, 30 January 2025
Rally in Middle East Oil Has Traders Piling In at Record Level - Bloomberg
Rally in Middle East Oil Has Traders Piling In at Record Level - Bloomberg
Oil traders hold a record position in a contract that lets them bet on the price difference between Middle Eastern crude and the global Brent benchmark, highlighting how unprecedented sanctions on Russian exports are shaking up flows.
Open interest on the Brent-Dubai contract traded on Intercontinental Exchange Inc. climbed to a record 448,000 contracts this week. That comes after Dubai prices recently hit their biggest premium since at least 2015.
Betting on the price difference between the two grades has been one of the most significant trades in the oil market since the US announced aggressive sanctions on Russia earlier this month. The restrictions forced buyers to hunt for replacement barrels — many of which come from the Middle East — pushing up prices of grades in that region relative to the rest of the world.
There are already signs of a knock-on effect of big premiums for Middle Eastern oil.
Millions of barrels that would normally be snapped up by European refineries, such as crude from places like the North Sea and Kazakhstan, have instead sailed to Asia as large price swings make supplies from farther afield more attractive.
Oil traders hold a record position in a contract that lets them bet on the price difference between Middle Eastern crude and the global Brent benchmark, highlighting how unprecedented sanctions on Russian exports are shaking up flows.
Open interest on the Brent-Dubai contract traded on Intercontinental Exchange Inc. climbed to a record 448,000 contracts this week. That comes after Dubai prices recently hit their biggest premium since at least 2015.
Betting on the price difference between the two grades has been one of the most significant trades in the oil market since the US announced aggressive sanctions on Russia earlier this month. The restrictions forced buyers to hunt for replacement barrels — many of which come from the Middle East — pushing up prices of grades in that region relative to the rest of the world.
There are already signs of a knock-on effect of big premiums for Middle Eastern oil.
Millions of barrels that would normally be snapped up by European refineries, such as crude from places like the North Sea and Kazakhstan, have instead sailed to Asia as large price swings make supplies from farther afield more attractive.
Gulf markets end mixed as investors eye earnings | Reuters
Gulf markets end mixed as investors eye earnings | Reuters
Stock markets in the Gulf ended mixed on Thursday ahead of more corporate earnings, with the Dubai index ending four sessions of losses.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.2%, with Al Rajhi Bank (1120.SE), opens new tab losing 1.4%.
In the previous session, the lender advanced 4.7%, after Al Rajhi reported an 18.7% surge in its net profit to 19.72 billion riyals ($5.26 billion) for 2024. The bank proposed a second-half cash dividend of 1.46 riyal per share, up from 1.15 riyal a year earlier.
Alinma Bank (1150.SE), opens new tab dropped 2.3% despite reporting a higher annual profit.
Dubai's main share index (.DFMGI), opens new tab added 0.5%, led by a 2.3% leap in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Among other gainers, Dubai Financial Market (DFM.DU), opens new tab gained 1.3%, ahead of its results.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%, with Abu Dhabi Commercial Bank (ADCB) (ADCB.AD), opens new tab climbing 3.7%, rising for a third consecutive session.
On Monday, ADCB reported a higher fourth-quarter net profit of 2.57 billion dirhams ($699.78 million), along with an annual dividend of 0.59 dirhams.
Additionally, the bank projected a doubling of net profits to 20 billion dirhams within five years.
In Qatar, the index (.QSI), opens new tab eased 0.1%, hit by a 0.6% fall in Qatar National Bank (QNBK.QA), opens new tab and a 1.9% slide in Qatar Gast Transport (Nakilat) (QGTS.QA), opens new tab.
Nakilat - the world's largest shipper of liquefied natural gas - on Wednesday retreated 2.4% after proposing a lower annual dividend.
However, the firm recorded a net profit of 1.64 billion riyals ($449.89 million), compared with 1.56 billion riyals a year ago.
On the other hand, Mesaieed Petrochemical Holding Co (MPHC.QA), opens new tab rose 1.9% ahead of the firm reporting its 2024 results.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with Talaat Moustafa Holding (TMGH.CA), opens new tab gaining 0.9%.
Stock markets in the Gulf ended mixed on Thursday ahead of more corporate earnings, with the Dubai index ending four sessions of losses.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.2%, with Al Rajhi Bank (1120.SE), opens new tab losing 1.4%.
In the previous session, the lender advanced 4.7%, after Al Rajhi reported an 18.7% surge in its net profit to 19.72 billion riyals ($5.26 billion) for 2024. The bank proposed a second-half cash dividend of 1.46 riyal per share, up from 1.15 riyal a year earlier.
Alinma Bank (1150.SE), opens new tab dropped 2.3% despite reporting a higher annual profit.
Dubai's main share index (.DFMGI), opens new tab added 0.5%, led by a 2.3% leap in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Among other gainers, Dubai Financial Market (DFM.DU), opens new tab gained 1.3%, ahead of its results.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%, with Abu Dhabi Commercial Bank (ADCB) (ADCB.AD), opens new tab climbing 3.7%, rising for a third consecutive session.
On Monday, ADCB reported a higher fourth-quarter net profit of 2.57 billion dirhams ($699.78 million), along with an annual dividend of 0.59 dirhams.
Additionally, the bank projected a doubling of net profits to 20 billion dirhams within five years.
In Qatar, the index (.QSI), opens new tab eased 0.1%, hit by a 0.6% fall in Qatar National Bank (QNBK.QA), opens new tab and a 1.9% slide in Qatar Gast Transport (Nakilat) (QGTS.QA), opens new tab.
Nakilat - the world's largest shipper of liquefied natural gas - on Wednesday retreated 2.4% after proposing a lower annual dividend.
However, the firm recorded a net profit of 1.64 billion riyals ($449.89 million), compared with 1.56 billion riyals a year ago.
On the other hand, Mesaieed Petrochemical Holding Co (MPHC.QA), opens new tab rose 1.9% ahead of the firm reporting its 2024 results.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with Talaat Moustafa Holding (TMGH.CA), opens new tab gaining 0.9%.
Wednesday, 29 January 2025
Middle East IPOs: #Oman’s Share Sale Pipeline Faces Crucial Test - Bloomberg
Middle East IPOs: Oman’s Share Sale Pipeline Faces Crucial Test - Bloomberg
A record $2.5 billion haul from new share sales helped Oman leapfrog markets like the UK last year, but the sultanate faces an early test of investors’ appetite in 2025.
The Oman Investment Authority-backed Asyad Group’s plan to sell at least a 20% stake in its shipping unit comes against the backdrop of muted debuts for two initial public offerings, including Muscat’s largest ever deal. Asyad Shipping Co.’s IPO will also serve as an indication of the government’s ability to execute its divestment program, for which it has earmarked around 30 assets.
“Asyad’s success will be a much needed catalyst for many more IPOs in the sultanate,” said Nishit Lakhotia, head of research at SICO Bank. Recent Omani offerings disappointed investors looking to make quick gains from flipping shares post listing, he added.
OQ Exploration & Production SAOG’s shares have fallen 17% since their October listing, while OQ Base Industries SAOG’s stock is largely flat since its debut last month. Firms that went public in 2023 have also struggled — OQ Gas Networks SAOC is down 6% and Abraj Energy Services SAOG is trading nearly 4% lower.
The weak outlook for energy prices may have dented appetite for recent Omani IPOs, which were linked to the oil and chemicals sectors, according to Hasnain Malik, emerging and frontier markets strategist at Tellimer.
Since October, Oman’s benchmark MSX 30 Index has dropped 3%, while the MSCI GCC Countries Combined Index has gained nearly 4% and Brent crude futures have risen 7.5%.
Asyad Shipping provides marine transportation services for key exports, making the business “relatively safe and sticky,” according to Lakhotia. A generous dividend policy may also help lure investors, he said.
Oman is a few years behind regional peers Saudi Arabia and the United Arab Emirates in its divestment program and its push to develop its capital markets. The Muscat Stock Exchange is among the smallest bourses in the region, with a market capitalization of just over $31 billion, according to data compiled by Bloomberg.
In August, the country’s capital markets regulator approved measures to boost private-sector listings and secondary liquidity. “The reforms are all in place to act as a catalyst,” Lakhotia said.
The sultanate is also chasing an upgrade to emerging-market status. Currently, Oman and Bahrain are the only countries in the six-nation Gulf Cooperation Council not classified as emerging markets by MSCI Inc.
Oman has “some way to go” to meet the market capitalization requirements necessary for the upgrade, said James Swanston, an economist at Capital Economics Ltd. But an improving economic backdrop is starting to boost the country’s allure, he said.
Stretched valuations — blamed for a string of disappointing listings in the Middle East — could be a factor in Oman as well. Asyad Shipping is considering seeking a valuation of at least $1 billion in its IPO, Bloomberg News has reported.
Strong debuts from Nice One Beauty Digital Marketing Co. and Almoosa Health Co. in Saudi Arabia show there is plenty of appetite for private sector plays on the domestic economy in the Gulf, Tellimer’s Malik said. “This should not prevent Oman from executing more privatizations, just maybe not at as high valuations as it previously hoped for.”
A record $2.5 billion haul from new share sales helped Oman leapfrog markets like the UK last year, but the sultanate faces an early test of investors’ appetite in 2025.
The Oman Investment Authority-backed Asyad Group’s plan to sell at least a 20% stake in its shipping unit comes against the backdrop of muted debuts for two initial public offerings, including Muscat’s largest ever deal. Asyad Shipping Co.’s IPO will also serve as an indication of the government’s ability to execute its divestment program, for which it has earmarked around 30 assets.
“Asyad’s success will be a much needed catalyst for many more IPOs in the sultanate,” said Nishit Lakhotia, head of research at SICO Bank. Recent Omani offerings disappointed investors looking to make quick gains from flipping shares post listing, he added.
OQ Exploration & Production SAOG’s shares have fallen 17% since their October listing, while OQ Base Industries SAOG’s stock is largely flat since its debut last month. Firms that went public in 2023 have also struggled — OQ Gas Networks SAOC is down 6% and Abraj Energy Services SAOG is trading nearly 4% lower.
The weak outlook for energy prices may have dented appetite for recent Omani IPOs, which were linked to the oil and chemicals sectors, according to Hasnain Malik, emerging and frontier markets strategist at Tellimer.
Since October, Oman’s benchmark MSX 30 Index has dropped 3%, while the MSCI GCC Countries Combined Index has gained nearly 4% and Brent crude futures have risen 7.5%.
Asyad Shipping provides marine transportation services for key exports, making the business “relatively safe and sticky,” according to Lakhotia. A generous dividend policy may also help lure investors, he said.
Oman is a few years behind regional peers Saudi Arabia and the United Arab Emirates in its divestment program and its push to develop its capital markets. The Muscat Stock Exchange is among the smallest bourses in the region, with a market capitalization of just over $31 billion, according to data compiled by Bloomberg.
In August, the country’s capital markets regulator approved measures to boost private-sector listings and secondary liquidity. “The reforms are all in place to act as a catalyst,” Lakhotia said.
The sultanate is also chasing an upgrade to emerging-market status. Currently, Oman and Bahrain are the only countries in the six-nation Gulf Cooperation Council not classified as emerging markets by MSCI Inc.
Oman has “some way to go” to meet the market capitalization requirements necessary for the upgrade, said James Swanston, an economist at Capital Economics Ltd. But an improving economic backdrop is starting to boost the country’s allure, he said.
Stretched valuations — blamed for a string of disappointing listings in the Middle East — could be a factor in Oman as well. Asyad Shipping is considering seeking a valuation of at least $1 billion in its IPO, Bloomberg News has reported.
Strong debuts from Nice One Beauty Digital Marketing Co. and Almoosa Health Co. in Saudi Arabia show there is plenty of appetite for private sector plays on the domestic economy in the Gulf, Tellimer’s Malik said. “This should not prevent Oman from executing more privatizations, just maybe not at as high valuations as it previously hoped for.”
Most Gulf markets fall on weak earnings; Al Rajhi boosts #Saudi | Reuters
Most Gulf markets fall on weak earnings; Al Rajhi boosts Saudi | Reuters
Most Gulf stock markets ended lower on Wednesday as disappointing corporate earnings dampened investor sentiment, although the Saudi index rose on strong gains by Al Rajhi Bank.
Dubai's main share index (.DFMGI), opens new tab declined 0.9%, weighed down by a 9.3% plunge in top lender Emirates NBD (ENBD) (ENBD.DU), opens new tab, posting the index's biggest intraday fall in nearly five years.
ENBD reported fourth-quarter net profit of 4 billion dirhams ($1.09 billion), marginally lower than a year earlier. The lender also missed analysts' estimates.
The Abu Dhabi index (.FTFADGI), opens new tab lost 0.3%, with Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab retreating 3.5%, after the firm acquired a controlling stake of 73.73% in the National Corporation for Tourism and Hotels (NCTH) through a strategic investment.
As part of the deal, assets from ADHH and Murban Energy Limited were sold to NCTH in exchange for shares.
Saudi Arabia's benchmark index (.TASI), opens new tab, however, gained 0.2%, helped by a 4.7% jump in Al Rajhi Bank (1120.SE), opens new tab, after the lender reported an 18.7% surge in its net profit to 19.72 billion riyals ($5.26 billion) for 2024.
In a separate filing, Al Rajhi Bank - which saw its biggest intraday gain in about 4 months - also proposed a second-half cash dividend of 1.46 riyal per share, up from 1.15 riyal a year earlier.
Elsewhere, Saudi Telecom Company (7010.SE), opens new tab rose 1%, a day after the firm said it won a contract worth 32.64 billion riyals from a government entity to build, operate and provide telecommunications infrastructure services.
On the other hand, Saudi National Bank (1180.SE), opens new tab retreated 2.9%, after reporting a slightly higher annual profit.
In Qatar, the index (.QSI), opens new tab notched 0.1% higher, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab rising 0.7%.
However, Qatar Gas Transport (Nakilat) (QGTS.QA), opens new tab fell 2.4%, on a lower annual dividend.
Nakilat - the world's largest shipper of liquefied natural gas - recorded a net profit of 1.64 billion riyals ($449.89 million), compared with 1.56 billion riyals a year ago.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.8% higher, with Talaat Moustafa Holding (TMGH.CA), opens new tab rising 2.1%.
Egypt has completed a $2 billion international bond sale, the country's first dollar-denominated international bond issuance in four years.
Most Gulf stock markets ended lower on Wednesday as disappointing corporate earnings dampened investor sentiment, although the Saudi index rose on strong gains by Al Rajhi Bank.
Dubai's main share index (.DFMGI), opens new tab declined 0.9%, weighed down by a 9.3% plunge in top lender Emirates NBD (ENBD) (ENBD.DU), opens new tab, posting the index's biggest intraday fall in nearly five years.
ENBD reported fourth-quarter net profit of 4 billion dirhams ($1.09 billion), marginally lower than a year earlier. The lender also missed analysts' estimates.
The Abu Dhabi index (.FTFADGI), opens new tab lost 0.3%, with Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab retreating 3.5%, after the firm acquired a controlling stake of 73.73% in the National Corporation for Tourism and Hotels (NCTH) through a strategic investment.
As part of the deal, assets from ADHH and Murban Energy Limited were sold to NCTH in exchange for shares.
Saudi Arabia's benchmark index (.TASI), opens new tab, however, gained 0.2%, helped by a 4.7% jump in Al Rajhi Bank (1120.SE), opens new tab, after the lender reported an 18.7% surge in its net profit to 19.72 billion riyals ($5.26 billion) for 2024.
In a separate filing, Al Rajhi Bank - which saw its biggest intraday gain in about 4 months - also proposed a second-half cash dividend of 1.46 riyal per share, up from 1.15 riyal a year earlier.
Elsewhere, Saudi Telecom Company (7010.SE), opens new tab rose 1%, a day after the firm said it won a contract worth 32.64 billion riyals from a government entity to build, operate and provide telecommunications infrastructure services.
On the other hand, Saudi National Bank (1180.SE), opens new tab retreated 2.9%, after reporting a slightly higher annual profit.
In Qatar, the index (.QSI), opens new tab notched 0.1% higher, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab rising 0.7%.
However, Qatar Gas Transport (Nakilat) (QGTS.QA), opens new tab fell 2.4%, on a lower annual dividend.
Nakilat - the world's largest shipper of liquefied natural gas - recorded a net profit of 1.64 billion riyals ($449.89 million), compared with 1.56 billion riyals a year ago.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.8% higher, with Talaat Moustafa Holding (TMGH.CA), opens new tab rising 2.1%.
Egypt has completed a $2 billion international bond sale, the country's first dollar-denominated international bond issuance in four years.
Tuesday, 28 January 2025
Snam to sell stake in ADNOC gas pipelines to #AbuDhabi's Lunate | Reuters
Snam to sell stake in ADNOC gas pipelines to Abu Dhabi's Lunate | Reuters
Italy's gas grid operator Snam (SRG.MI), opens new tab will sell its minority stake indirectly held in ADNOC Gas Pipelines to Abu Dhabi-based investment fund Lunate, Snam said on Tuesday.
The deal is in line with the Italian group's long-term strategy to strengthen its role in Europe and reduce exposure to assets not located along Europe's major energy corridors.
"The sale of the stake in ADNOC Gas Pipelines is consistent with the recently presented strategic plan, which focuses on the development of a pan-European multi-molecule infrastructure," Snam's CEO Stefano Venier said in a statement.
Snam classified the stake in ADNOC Gas Pipelines in a cluster of assets, which also includes a minority shareholding in the British Interconnector, that could be divested.
ADNOC Gas Pipelines, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has lease rights to 38 pipelines covering a total of 982 kilometres (610 miles) across the United Arab Emirates.
"We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate's mandate to offer investors access to high-quality assets," Lunate's Managing Partner Murtaza Hussain said.
Rothschild and Bank of America acted as financial advisers for Lunate and Snam, respectively.
Last year Lunate bought a 40% stake from private equity firms BlackRock (BLK.N), opens new tab and KKR (KKR.N), opens new tab in the entity that leases Abu Dhabi National Oil Company's (ADNOC) oil pipelines.
Snam acquired an indirect stake of almost 6% in ADNOC Gas Pipelines in 2020, along with other consortium partners, including international funds GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board and NH Investment & Securities, through Galaxy Pipeline Assets HoldCo Limited.
The Italian group did not provide any figure for the financial value of the transaction.
"Snam currently holds a 5.88% indirect stake in ADNOC, and our model includes a value for Snam's stake of 200 million euros, while the book value is at 135 million euros," Italian investment bank Mediobanca said in a client note.
According to a source, the deal will result in a capital gain for Snam compared with the book value.
Italy's gas grid operator Snam (SRG.MI), opens new tab will sell its minority stake indirectly held in ADNOC Gas Pipelines to Abu Dhabi-based investment fund Lunate, Snam said on Tuesday.
The deal is in line with the Italian group's long-term strategy to strengthen its role in Europe and reduce exposure to assets not located along Europe's major energy corridors.
"The sale of the stake in ADNOC Gas Pipelines is consistent with the recently presented strategic plan, which focuses on the development of a pan-European multi-molecule infrastructure," Snam's CEO Stefano Venier said in a statement.
Snam classified the stake in ADNOC Gas Pipelines in a cluster of assets, which also includes a minority shareholding in the British Interconnector, that could be divested.
ADNOC Gas Pipelines, a subsidiary of Abu Dhabi National Oil Company (ADNOC), has lease rights to 38 pipelines covering a total of 982 kilometres (610 miles) across the United Arab Emirates.
"We are pleased to strengthen our partnership with ADNOC through this investment and deliver on Lunate's mandate to offer investors access to high-quality assets," Lunate's Managing Partner Murtaza Hussain said.
Rothschild and Bank of America acted as financial advisers for Lunate and Snam, respectively.
Last year Lunate bought a 40% stake from private equity firms BlackRock (BLK.N), opens new tab and KKR (KKR.N), opens new tab in the entity that leases Abu Dhabi National Oil Company's (ADNOC) oil pipelines.
Snam acquired an indirect stake of almost 6% in ADNOC Gas Pipelines in 2020, along with other consortium partners, including international funds GIP, GIC, Brookfield Asset Management, Ontario Teachers' Pension Plan Board and NH Investment & Securities, through Galaxy Pipeline Assets HoldCo Limited.
The Italian group did not provide any figure for the financial value of the transaction.
"Snam currently holds a 5.88% indirect stake in ADNOC, and our model includes a value for Snam's stake of 200 million euros, while the book value is at 135 million euros," Italian investment bank Mediobanca said in a client note.
According to a source, the deal will result in a capital gain for Snam compared with the book value.
Gulf markets end mixed amid US tariff threats | Reuters
Gulf markets end mixed amid US tariff threats | Reuters
Stock markets in the Gulf closed mixed on Tuesday as investors assessed U.S. President Donald Trump's latest tariff threats, with the Saudi index rising on the back of property and telecom shares.
On Monday, Trump revealed plans to impose tariffs on imported computer chips and certain metal imports, among other products. This move is likely to affect industries from technology to manufacturing and may have far-reaching consequences for the global economy.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, led by a 1.6% rise in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Among other gainers, Jabal Omar Development Company (4250.SE), opens new tab, a real estate firm based out of Mecca, jumped 7.5%, rising for a third consecutive session.
The kingdom's Capital Market Authority (CMA) on Monday said foreign investors will be permitted to invest in Saudi-listed real estate companies operating in Mecca and Medina from Jan. 27.
Elsewhere, Saudi Telecom Company (7010.SE), opens new tab advanced 2.2%, after the firm said it won a contract worth 32.64 billion riyals ($8.70 billion) from a government entity to build, operate and provide telecommunications infrastructure services.
Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 4% slide in Emaar Development (EMAARDEV.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab concluded flat.
Oil prices - a catalyst for the Gulf's financial markets - edged higher but remained near a two-week low, as weak economic data from China and rising temperatures elsewhere dampened demand prospects.
The Qatari benchmark (.QSI), opens new tab added 0.1%, helped by a 1.1% gain in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 0.8% increase in Qatar International Islamic Bank (QIIB.QA), opens new tab ahead of its earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.3%, with Talaat Moustafa Holding (TMGH.CA), opens new tab declining 1.8%.
On Monday, Trump revealed plans to impose tariffs on imported computer chips and certain metal imports, among other products. This move is likely to affect industries from technology to manufacturing and may have far-reaching consequences for the global economy.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, led by a 1.6% rise in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Among other gainers, Jabal Omar Development Company (4250.SE), opens new tab, a real estate firm based out of Mecca, jumped 7.5%, rising for a third consecutive session.
The kingdom's Capital Market Authority (CMA) on Monday said foreign investors will be permitted to invest in Saudi-listed real estate companies operating in Mecca and Medina from Jan. 27.
Elsewhere, Saudi Telecom Company (7010.SE), opens new tab advanced 2.2%, after the firm said it won a contract worth 32.64 billion riyals ($8.70 billion) from a government entity to build, operate and provide telecommunications infrastructure services.
Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 4% slide in Emaar Development (EMAARDEV.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab concluded flat.
Oil prices - a catalyst for the Gulf's financial markets - edged higher but remained near a two-week low, as weak economic data from China and rising temperatures elsewhere dampened demand prospects.
The Qatari benchmark (.QSI), opens new tab added 0.1%, helped by a 1.1% gain in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 0.8% increase in Qatar International Islamic Bank (QIIB.QA), opens new tab ahead of its earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.3%, with Talaat Moustafa Holding (TMGH.CA), opens new tab declining 1.8%.
Monday, 27 January 2025
Most Gulf markets fall amid US trade concerns | Reuters
Most Gulf markets fall amid US trade concerns | Reuters
Most stock markets in the Gulf ended lower on Monday due to uncertainty surrounding U.S. trade policy, although the Qatari index bucked the trend.
U.S. President Donald Trump reaffirmed his commitment to enforcing tariffs, with a recent dispute with Colombia centered on migration-related issues that prompted Trump to threaten the country with tariffs and sanctions. The move sent a clear signal that the U.S. would not hesitate to act to protect its interests.
Investors in the region are increasingly cautious due to the unpredictable nature of U.S. trade decisions, which have the potential to significantly impact global markets.
Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to close 0.1% lower, hit by a 0.5% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.1% decrease in Saudi Arabian Mining Company (1211.SE), opens new tab.
However, the index's losses were limited by gains in the real estate division with Jabal Omar Development Company (4250.SE), opens new tab soaring 10%.
The kingdom's Capital Market Authority (CMA) said foreign investors will be permitted to invest in Saudi-listed real estate companies operating in Mecca and Medina from Jan. 27.
Dubai's main share index (.DFMGI), opens new tab dropped 0.7%, weighed down by a 2.3% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Meanwhile, oil market momentum was kept in check as prices fluctuated in and out of negative territory, with traders on edge despite the U.S. pulling back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions.
The Qatari benchmark (.QSI), opens new tab rose 0.2%, helped by a 1.5% rise in Commercial Bank (COMB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1%, as most of its constituents were in negative territory including Commercial International Bank (COMI.CA), opens new tab, which was down 0.8%.
Most stock markets in the Gulf ended lower on Monday due to uncertainty surrounding U.S. trade policy, although the Qatari index bucked the trend.
U.S. President Donald Trump reaffirmed his commitment to enforcing tariffs, with a recent dispute with Colombia centered on migration-related issues that prompted Trump to threaten the country with tariffs and sanctions. The move sent a clear signal that the U.S. would not hesitate to act to protect its interests.
Investors in the region are increasingly cautious due to the unpredictable nature of U.S. trade decisions, which have the potential to significantly impact global markets.
The ongoing tensions between the U.S. and its trading partners have created a climate of uncertainty, making it challenging for investors to make informed decisions.
Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to close 0.1% lower, hit by a 0.5% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.1% decrease in Saudi Arabian Mining Company (1211.SE), opens new tab.
However, the index's losses were limited by gains in the real estate division with Jabal Omar Development Company (4250.SE), opens new tab soaring 10%.
The kingdom's Capital Market Authority (CMA) said foreign investors will be permitted to invest in Saudi-listed real estate companies operating in Mecca and Medina from Jan. 27.
Dubai's main share index (.DFMGI), opens new tab dropped 0.7%, weighed down by a 2.3% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Meanwhile, oil market momentum was kept in check as prices fluctuated in and out of negative territory, with traders on edge despite the U.S. pulling back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions.
The Qatari benchmark (.QSI), opens new tab rose 0.2%, helped by a 1.5% rise in Commercial Bank (COMB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1%, as most of its constituents were in negative territory including Commercial International Bank (COMI.CA), opens new tab, which was down 0.8%.
#SaudiArabia Opens Foreign Property Investments in Holy Cities - Bloomberg
Saudi Arabia Opens Foreign Property Investments in Holy Cities - Bloomberg
Saudi Arabia said it will begin allowing foreigners to invest in publicly-traded companies owning real estate in the holy cities of Makkah and Madinah for the first time as the kingdom looks to draw in more overseas investment.
Starting today, foreign investors can purchase shares and convertible debt instruments in firms listed on the Saudi stock exchange that own either public or private real estate within the boundaries of the cities, according to a statement from the Capital Market Authority. An exception applies to strategic foreign investors and foreign ownership cannot exceed 49% of a company’s listed shares, the CMA said.
Shares of some real estate firms rose on the news. Jabal Omar Development Co. jumped as much as 10% at the open in Saudi Arabia. Taiba Investments Co.. Emaar Economic City and Makkah Construction & Development Co., were also among the stocks that climbed.
Saudi Arabia has been undertaking efforts to boost its appeal as an investment destination under the Vision 2030 diversification agenda, including by introducing sweeping reforms to investment laws and loosening rules on foreign ownership in the stock market. The kingdom is also carrying out various expansion projects in Makkah and Madinah as it aims to accommodate 30 million foreign worshippers a year by 2030.
“This is a recognition of the key role that foreign investors have in enabling the recycling of capital into new real estate developments within the kingdom,” Christopher Payne, partner and chief economist for MENA at Knight Frank said of the new rules.
REITs listed in the country “tend to invest across sectors and across the kingdom, so these regulatory changes will likely have a significant impact now, and going forward as more REITs are listed,” he said.
Non-Muslims are not allowed to own property in the holy cities of Makkah and Madinah, even after Saudi Arabia gradually allowed some foreigners to own property in various parts of the kingdom.
Foreigners can obtain long-term residency in Saudi Arabia by investing 4 million riyals ($1.1 million) into residential real estate, a rule that was introduced only few years ago. The two holy cities are coveted locations by investors who see stable, long term demand.
Hotel operators and apartment owners can make sizable return because the religious requirements for every able bodied Muslim to complete a Hajj pilgrimage once in a lifetime drives demand to the cities. Some funds from Islamic majority countries have obtained long-term leases on towers of residential apartments which are used to cater to pilgrims from their countries.
In 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of the holy cities, but not make direct investments in company shares or debt instruments.
Saudi Arabia said it will begin allowing foreigners to invest in publicly-traded companies owning real estate in the holy cities of Makkah and Madinah for the first time as the kingdom looks to draw in more overseas investment.
Starting today, foreign investors can purchase shares and convertible debt instruments in firms listed on the Saudi stock exchange that own either public or private real estate within the boundaries of the cities, according to a statement from the Capital Market Authority. An exception applies to strategic foreign investors and foreign ownership cannot exceed 49% of a company’s listed shares, the CMA said.
Shares of some real estate firms rose on the news. Jabal Omar Development Co. jumped as much as 10% at the open in Saudi Arabia. Taiba Investments Co.. Emaar Economic City and Makkah Construction & Development Co., were also among the stocks that climbed.
Saudi Arabia has been undertaking efforts to boost its appeal as an investment destination under the Vision 2030 diversification agenda, including by introducing sweeping reforms to investment laws and loosening rules on foreign ownership in the stock market. The kingdom is also carrying out various expansion projects in Makkah and Madinah as it aims to accommodate 30 million foreign worshippers a year by 2030.
“This is a recognition of the key role that foreign investors have in enabling the recycling of capital into new real estate developments within the kingdom,” Christopher Payne, partner and chief economist for MENA at Knight Frank said of the new rules.
REITs listed in the country “tend to invest across sectors and across the kingdom, so these regulatory changes will likely have a significant impact now, and going forward as more REITs are listed,” he said.
Non-Muslims are not allowed to own property in the holy cities of Makkah and Madinah, even after Saudi Arabia gradually allowed some foreigners to own property in various parts of the kingdom.
Foreigners can obtain long-term residency in Saudi Arabia by investing 4 million riyals ($1.1 million) into residential real estate, a rule that was introduced only few years ago. The two holy cities are coveted locations by investors who see stable, long term demand.
Hotel operators and apartment owners can make sizable return because the religious requirements for every able bodied Muslim to complete a Hajj pilgrimage once in a lifetime drives demand to the cities. Some funds from Islamic majority countries have obtained long-term leases on towers of residential apartments which are used to cater to pilgrims from their countries.
In 2021, the CMA allowed non-Saudis to subscribe to real estate funds investing within the boundaries of the holy cities, but not make direct investments in company shares or debt instruments.
Watch How Will #SaudiArabia Respond to Trump's $1 Trillion Demand? - Bloomberg video
Watch How Will Saudi Arabia Respond to Trump's $1 Trillion Demand? - Bloomberg
US President Donald Trump’s push for $1 trillion of investments from Saudi Arabia is “completely unrealistic,” according to Karen Young, a senior research scholar at Columbia University. But, the kingdom might make promises of defense purchases and service contracts over a long period, she told Jennifer Zabasajja on Bloomberg TV’s Horizons Middle East and Africa. (Source: Bloomberg)
US President Donald Trump’s push for $1 trillion of investments from Saudi Arabia is “completely unrealistic,” according to Karen Young, a senior research scholar at Columbia University. But, the kingdom might make promises of defense purchases and service contracts over a long period, she told Jennifer Zabasajja on Bloomberg TV’s Horizons Middle East and Africa. (Source: Bloomberg)
Sunday, 26 January 2025
Most Gulf markets gain after Trump comments | Reuters
Most Gulf markets gain after Trump comments | Reuters
Most stock markets in the Gulf ended higher on Sunday driven by optimism over U.S. President Donald Trump's recent comments hinting at a more relaxed approach to tariffs on Chinese goods and potentially lower US interest rates.
Trump expressed his desire to lower global oil prices, interest rates and taxes in a speech to the World Economic Forum in Davos, Switzerland.
He also mentioned that his recent conversation with Chinese President Xi Jinping was positive and that he's optimistic about reaching a trade deal with China.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 1.3% rise in ACWA Power Company (2082.SE), opens new tab and a 2.4% increase in Jabal Omar Development Company (4250.SE), opens new tab.
Separately, Saudi Economy Minister Faisal Alibrahim said on Friday that the kingdom's $600 billion expanded package with the United States includes investments as well as procurement from the public and private sectors.
In Qatar, the index (.QSI), opens new tab lost 0.1%, hit by a 3.8% fall in Masraf Al Rayan (MARK.QA), opens new tab, after reporting a marginal increase in annual profit.
The sharia-compliant lender reported a net profit of 1.51 billion riyals for 2024, up from 1.45 billion riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.1%, helped by a 0.8% rise in Commercial International Bank (COMI.CA), opens new tab.
Most stock markets in the Gulf ended higher on Sunday driven by optimism over U.S. President Donald Trump's recent comments hinting at a more relaxed approach to tariffs on Chinese goods and potentially lower US interest rates.
Trump expressed his desire to lower global oil prices, interest rates and taxes in a speech to the World Economic Forum in Davos, Switzerland.
He also mentioned that his recent conversation with Chinese President Xi Jinping was positive and that he's optimistic about reaching a trade deal with China.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 1.3% rise in ACWA Power Company (2082.SE), opens new tab and a 2.4% increase in Jabal Omar Development Company (4250.SE), opens new tab.
Separately, Saudi Economy Minister Faisal Alibrahim said on Friday that the kingdom's $600 billion expanded package with the United States includes investments as well as procurement from the public and private sectors.
In Qatar, the index (.QSI), opens new tab lost 0.1%, hit by a 3.8% fall in Masraf Al Rayan (MARK.QA), opens new tab, after reporting a marginal increase in annual profit.
The sharia-compliant lender reported a net profit of 1.51 billion riyals for 2024, up from 1.45 billion riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.1%, helped by a 0.8% rise in Commercial International Bank (COMI.CA), opens new tab.
Friday, 24 January 2025
Oil boosts #AbuDhabi, #Dubai falls | Reuters #UAE
Oil boosts Abu Dhabi, Dubai falls | Reuters
Abu Dhabi index closed higher on Friday, in line with oil prices after U.S. President Donald Trump issued a sweeping plan to boost U.S. production and demanded OPEC lower crude prices, while Dubai bucked the trend.
Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wanted to lower global oil prices, interest rates and taxes.
Oil prices - a key catalyst for the Gulf's financial market - rose on Friday with Brent crude gaining 0.52% to $78.70 a barrel by 1145 GMT
Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains to the fifth session with the largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, rising 1% and Adnoc Drilling (ADNOCDRILL.AD), opens new tab increasing 0.5%.
Among the gainers, National Bank of Ras Al Khaimah (RAKBANK.AD), opens new tab surged 7.1% after the lender reported a 16.4% growth in full-year net profit after tax to 2.1 billion dirhams ($571.79 million).
Abu Dhabi's outlook remains optimistic, with upcoming fourth-quarter results potentially providing additional support if they prove favourable, said Joseph Dahrieh, Managing Principal at Tickmill.
However, Dubai's main index (.DFMGI), opens new tab fell 0.4%, snapping a three-session gaining streak, dragged down by losses in heavyweight real estate and utilities sector stocks.
Dubai's biggest developer Emaar Properties (EMAR.DU), opens new tab declined 1.5% and state-run utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab shed 1.2%.
Dubai and Abu Dhabi markets recorded 0.3% and 0.7% gains respectively on a weekly basis according to LSEG data.
Abu Dhabi index closed higher on Friday, in line with oil prices after U.S. President Donald Trump issued a sweeping plan to boost U.S. production and demanded OPEC lower crude prices, while Dubai bucked the trend.
Trump told business leaders at the World Economic Forum in Davos, Switzerland, on Thursday that he wanted to lower global oil prices, interest rates and taxes.
Oil prices - a key catalyst for the Gulf's financial market - rose on Friday with Brent crude gaining 0.52% to $78.70 a barrel by 1145 GMT
Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains to the fifth session with the largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, rising 1% and Adnoc Drilling (ADNOCDRILL.AD), opens new tab increasing 0.5%.
Among the gainers, National Bank of Ras Al Khaimah (RAKBANK.AD), opens new tab surged 7.1% after the lender reported a 16.4% growth in full-year net profit after tax to 2.1 billion dirhams ($571.79 million).
Abu Dhabi's outlook remains optimistic, with upcoming fourth-quarter results potentially providing additional support if they prove favourable, said Joseph Dahrieh, Managing Principal at Tickmill.
However, Dubai's main index (.DFMGI), opens new tab fell 0.4%, snapping a three-session gaining streak, dragged down by losses in heavyweight real estate and utilities sector stocks.
Dubai's biggest developer Emaar Properties (EMAR.DU), opens new tab declined 1.5% and state-run utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab shed 1.2%.
Dubai and Abu Dhabi markets recorded 0.3% and 0.7% gains respectively on a weekly basis according to LSEG data.
Thursday, 23 January 2025
#SaudiArabia Says $770 Billion Invested in US as MBS Eyes More - Bloomberg
Saudi Arabia Says $770 Billion Invested in US as MBS Eyes More - Bloomberg
Saudi Arabia has investments of more than $770 billion in the US and said it expects relations with Washington “will continue to be flourishing” as the kingdom pursues its broad economic overhaul.
The comments from Finance Minister Mohammed Al-Jadaan at the World Economic Forum in Davos, Switzerland, come fresh on the heels of news that Saudi Arabia is willing to expand investments and trade with the US by $600 billion over the next four years.
“We enjoy a very strong relationship with the US over the years,” Jadaan said in an interview with Bloomberg Television. “We have a relationship that spans over eight decades. Very strategic, based on economy and trade, and will continue.”
Relations with Europe and China will also continue to grow as Saudi Arabia presses ahead with its strategy to build new industries and develop the non-oil economy, Jadaan said. While some plans under the so-called Vision 2030 agenda have been recalibrated to consider priorities and risks to the economy, reforms remain on track, he added.
Under Saudi Crown Prince Mohammed bin Salman, the kingdom is investing hundreds of billions of dollars on preparations for a post-oil future. The country has started to scale back some projects, Bloomberg has reported, in part because oil prices have been stuck below levels that are needed to balance the country’s budget.
Saudi Arabia needs Brent crude prices at north of $90 a barrel this year to reach fiscal equilibrium, the International Monetary Fund has said. The benchmark has risen this year to trade near $80 but remains far off that target.
The government has projected it will run annual budget deficits through at least 2027 as it prioritizes investments on its domestic economy. To address that gap, the kingdom and the sovereign wealth fund known as PIF have been raising money from debt sales.
Saudi Arabia tapped international bond markets for $12 billion earlier this month, while the PIF raised $4 billion through a debt offering this week.
The IMF downgraded its growth forecasts for Saudi Arabia by 1.3 percentage point to 3.3% for this year, citing the decision by the OPEC+ oil alliance to extend production cuts.
The government also slashed its own forecasts in September and sees growth at 4.6% this year, and 3.5% for 2026. Growth of close to 4% over the next few years would still outpace most other growth in Group-of-20 nations.
When asked about foreign direct investment, Jadaan stressed the importance of local investors in reaching the kingdom’s goal to drawn in more than $100 billion of foreign capital a year by 2030.
“If you are not able to convince local investors to invest, you will not be able to convince foreign investors,” he said.
Saudi Arabia has investments of more than $770 billion in the US and said it expects relations with Washington “will continue to be flourishing” as the kingdom pursues its broad economic overhaul.
The comments from Finance Minister Mohammed Al-Jadaan at the World Economic Forum in Davos, Switzerland, come fresh on the heels of news that Saudi Arabia is willing to expand investments and trade with the US by $600 billion over the next four years.
“We enjoy a very strong relationship with the US over the years,” Jadaan said in an interview with Bloomberg Television. “We have a relationship that spans over eight decades. Very strategic, based on economy and trade, and will continue.”
Relations with Europe and China will also continue to grow as Saudi Arabia presses ahead with its strategy to build new industries and develop the non-oil economy, Jadaan said. While some plans under the so-called Vision 2030 agenda have been recalibrated to consider priorities and risks to the economy, reforms remain on track, he added.
Under Saudi Crown Prince Mohammed bin Salman, the kingdom is investing hundreds of billions of dollars on preparations for a post-oil future. The country has started to scale back some projects, Bloomberg has reported, in part because oil prices have been stuck below levels that are needed to balance the country’s budget.
Saudi Arabia needs Brent crude prices at north of $90 a barrel this year to reach fiscal equilibrium, the International Monetary Fund has said. The benchmark has risen this year to trade near $80 but remains far off that target.
The government has projected it will run annual budget deficits through at least 2027 as it prioritizes investments on its domestic economy. To address that gap, the kingdom and the sovereign wealth fund known as PIF have been raising money from debt sales.
Saudi Arabia tapped international bond markets for $12 billion earlier this month, while the PIF raised $4 billion through a debt offering this week.
The IMF downgraded its growth forecasts for Saudi Arabia by 1.3 percentage point to 3.3% for this year, citing the decision by the OPEC+ oil alliance to extend production cuts.
The government also slashed its own forecasts in September and sees growth at 4.6% this year, and 3.5% for 2026. Growth of close to 4% over the next few years would still outpace most other growth in Group-of-20 nations.
When asked about foreign direct investment, Jadaan stressed the importance of local investors in reaching the kingdom’s goal to drawn in more than $100 billion of foreign capital a year by 2030.
“If you are not able to convince local investors to invest, you will not be able to convince foreign investors,” he said.
Gulf markets end mixed amid Trump's tariff plans | Reuters
Gulf markets end mixed amid Trump's tariff plans | Reuters
Stock markets in the Gulf ended mixed on Thursday, as investors remained cautious, keeping a watchful eye on U.S. President Donald Trump's policy announcements and their potential impact on the market.
Trump said on Tuesday his administration was considering imposing a 10% tariff on Chinese goods starting Feb. 1. He previously said Mexico and Canada could face tariffs of around 25% from the same date.
Such a move could significantly affect global trade and economic stability, with potential consequences, including higher prices for consumers and reduced economic growth.
Trump's early presidency has been characterized by a flurry of executive orders over a wide range of issues causing investors to prepare for potential shifts in trade policies, tariffs, and economic measures leading to volatile market sentiment.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE), opens new tab.
Elsewhere, Prince Alwaleed Bin Talal's investment company Kingdom Holding (4280.SE), opens new tab declined 2.4%, a day after advancing more than 3%, after its CEO told Al Arabiya TV that the firm would be interested in investing in ByteDance's TikTok if Elon Musk or others stepped in to buy it.
Separately, the kingdom's Crown Prince Mohammed bin Salman told Trump that Saudi Arabia wants to put $600 billion into expanded investment and trade with the United States over the next four years, according to the Saudi State news agency.
Dubai's main share index (.DFMGI), opens new tab added 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.5%.
The Qatari benchmark (.QSI), opens new tab was up 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 0.6%.
Qatar plans to introduce three new laws aimed at attracting foreign investors to boost its economy through bankruptcy, public-private partnership and commercial registration laws.
This move aims to make the Gulf Arab state more attractive to foreign investors, as announced by the new Minister of Commerce and Economy, Sheikh Faisal bin Thani Al Thani.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.1% higher, with tobacco monopoly Easter Company (EAST.CA), opens new tab climbing 3.6%.
Stock markets in the Gulf ended mixed on Thursday, as investors remained cautious, keeping a watchful eye on U.S. President Donald Trump's policy announcements and their potential impact on the market.
Trump said on Tuesday his administration was considering imposing a 10% tariff on Chinese goods starting Feb. 1. He previously said Mexico and Canada could face tariffs of around 25% from the same date.
Such a move could significantly affect global trade and economic stability, with potential consequences, including higher prices for consumers and reduced economic growth.
Trump's early presidency has been characterized by a flurry of executive orders over a wide range of issues causing investors to prepare for potential shifts in trade policies, tariffs, and economic measures leading to volatile market sentiment.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, hit by a 1.2% fall in Al Rajhi Bank (1120.SE), opens new tab.
Elsewhere, Prince Alwaleed Bin Talal's investment company Kingdom Holding (4280.SE), opens new tab declined 2.4%, a day after advancing more than 3%, after its CEO told Al Arabiya TV that the firm would be interested in investing in ByteDance's TikTok if Elon Musk or others stepped in to buy it.
Separately, the kingdom's Crown Prince Mohammed bin Salman told Trump that Saudi Arabia wants to put $600 billion into expanded investment and trade with the United States over the next four years, according to the Saudi State news agency.
Dubai's main share index (.DFMGI), opens new tab added 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.5%.
The Qatari benchmark (.QSI), opens new tab was up 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 0.6%.
Qatar plans to introduce three new laws aimed at attracting foreign investors to boost its economy through bankruptcy, public-private partnership and commercial registration laws.
This move aims to make the Gulf Arab state more attractive to foreign investors, as announced by the new Minister of Commerce and Economy, Sheikh Faisal bin Thani Al Thani.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.1% higher, with tobacco monopoly Easter Company (EAST.CA), opens new tab climbing 3.6%.
Wednesday, 22 January 2025
#SaudiArabia Gets IMF Growth Downgrade On OPEC+ Supply Moves - Bloomberg
Saudi Arabia Gets IMF Growth Downgrade On OPEC+ Supply Moves - Bloomberg
The International Monetary Fund downgraded its growth forecasts for Saudi Arabia by more than any other major economy it tracks, citing the decision by the oil alliance OPEC+ to extend production cuts.
The outlook for the Middle East’s biggest economy was cut by 1.3 percentage point to 3.3% for this year, the Washington-based lender said, continuing a pattern of downward revisions for the kingdom from last year. The fund also reduced its growth forecast for 2026 to 4.1%.
The IMF’s projection for 2025 is lower than that of the Saudi Finance Ministry. The government slashed its forecasts in September and sees growth at 4.6% this year, and 3.5% for 2026. Growth of close to 4% over the next few years would still outpace most other growth in Group-of-20 nations.
Saud Arabia is spending heavily on diversifying the economy under Crown Prince Mohammed Bin Salman’s so-called Vision 2030 strategy. The kingdom has projected budget deficits through at least 2027 as it chooses to spend on its diversification at the same time the government is facing lower oil receipts.
The OPEC+ alliance, led by the Saudis and Russia, has delayed three times the restart of oil production halted since 2022, fearing that reviving output would tip global crude markets into a surplus and depress prices. The group currently intends to gradually restore supplies in modest tranches of roughly 120,000 barrels per day from April, and will likely review its plans in early March.
The country needs Brent at north of $90 a barrel this year to balance its budget, the IMF has said. Brent crude has risen this year to trade near $80 a barrel but remains far off that target.
The kingdom and Saudi Arabia’s sovereign wealth fund, know as the PIF, have have raised billions of dollars of debt to fund the crown prince’s plans and may continue to be a major issuer of international debt in 2025.
The government has long focused on growing its non-oil economy, where the vast bulk of Saudis are employed. That has so far led to a 50-50 make up of oil to non-oil GDP growth.
The International Monetary Fund downgraded its growth forecasts for Saudi Arabia by more than any other major economy it tracks, citing the decision by the oil alliance OPEC+ to extend production cuts.
The outlook for the Middle East’s biggest economy was cut by 1.3 percentage point to 3.3% for this year, the Washington-based lender said, continuing a pattern of downward revisions for the kingdom from last year. The fund also reduced its growth forecast for 2026 to 4.1%.
The IMF’s projection for 2025 is lower than that of the Saudi Finance Ministry. The government slashed its forecasts in September and sees growth at 4.6% this year, and 3.5% for 2026. Growth of close to 4% over the next few years would still outpace most other growth in Group-of-20 nations.
Saud Arabia is spending heavily on diversifying the economy under Crown Prince Mohammed Bin Salman’s so-called Vision 2030 strategy. The kingdom has projected budget deficits through at least 2027 as it chooses to spend on its diversification at the same time the government is facing lower oil receipts.
The OPEC+ alliance, led by the Saudis and Russia, has delayed three times the restart of oil production halted since 2022, fearing that reviving output would tip global crude markets into a surplus and depress prices. The group currently intends to gradually restore supplies in modest tranches of roughly 120,000 barrels per day from April, and will likely review its plans in early March.
The country needs Brent at north of $90 a barrel this year to balance its budget, the IMF has said. Brent crude has risen this year to trade near $80 a barrel but remains far off that target.
The kingdom and Saudi Arabia’s sovereign wealth fund, know as the PIF, have have raised billions of dollars of debt to fund the crown prince’s plans and may continue to be a major issuer of international debt in 2025.
The government has long focused on growing its non-oil economy, where the vast bulk of Saudis are employed. That has so far led to a 50-50 make up of oil to non-oil GDP growth.
Most Gulf markets rise amid tariff uncertainty | Reuters
Most Gulf markets rise amid tariff uncertainty | Reuters
Most stock markets in the Gulf ended higher on Wednesday amid general caution in response to U.S. President Donald Trump's recent policy announcements, with the Qatari index outperforming thanks to strong corporate earnings.
Trump said late on Tuesday that his administration was considering imposing a 10% tariff on Chinese goods starting on Feb. 1. He previously said that Mexico and Canada could face tariffs of around 25% from the same date.
Such a move could significantly affect global trade and economic stability, with potential consequences including higher prices for consumers and reduced economic growth.
Trump also threatened duties on European imports, without providing further details.
The Qatari index (.QSI), opens new tab advanced 1.1%, led by a 3.9% jump in Commercial Bank (COMB.QA), opens new tab, after it reported a net profit of 3.03 billion riyals ($832.14 million) for 2024, little changed from last year, while proposing a nearly 20% higher full-year cash dividend.
Qatar Fuel Company (QFLS.QA), opens new tab finished 1.8% higher, ahead of its earnings announcement.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, helped by a 1.4% gain in top lender Emirates NBD (ENBD.DU), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.1%, hit by a 1.5% fall in ACWA Power Company (2082.SE), opens new tab, while digital security firm Elm Company (7203.SE), opens new tab retreated 4%, as the firm agreed to acquire business services firm Thiqah from the country's sovereign wealth fund Public Investment Fund in a deal valued at 3.4 billion riyals ($906.4 million).
Prince Alwaleed Bin Talal's investment company Kingdom Holding (KHC) (4280.SE), opens new tab advanced 3.2%, after its CEO told Al Arabiya TV that the firm would be interested in investing in ByteDance's TikTok if Elon Musk or others stepped in to buy it.
Outside the Gulf, EGypt's blue-chip index (.EGX30), opens new tab rose 0.5%, as most of its constituents were in positive territory.
The Egyptian stock market continued its upward momentum, driven by sustained optimism and eased geopolitical tensions, which contributed to the market's recovery, said Milad Azar Market analyst at XTB MENA.
Most stock markets in the Gulf ended higher on Wednesday amid general caution in response to U.S. President Donald Trump's recent policy announcements, with the Qatari index outperforming thanks to strong corporate earnings.
Trump said late on Tuesday that his administration was considering imposing a 10% tariff on Chinese goods starting on Feb. 1. He previously said that Mexico and Canada could face tariffs of around 25% from the same date.
Such a move could significantly affect global trade and economic stability, with potential consequences including higher prices for consumers and reduced economic growth.
Trump also threatened duties on European imports, without providing further details.
The Qatari index (.QSI), opens new tab advanced 1.1%, led by a 3.9% jump in Commercial Bank (COMB.QA), opens new tab, after it reported a net profit of 3.03 billion riyals ($832.14 million) for 2024, little changed from last year, while proposing a nearly 20% higher full-year cash dividend.
Qatar Fuel Company (QFLS.QA), opens new tab finished 1.8% higher, ahead of its earnings announcement.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, helped by a 1.4% gain in top lender Emirates NBD (ENBD.DU), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.1%, hit by a 1.5% fall in ACWA Power Company (2082.SE), opens new tab, while digital security firm Elm Company (7203.SE), opens new tab retreated 4%, as the firm agreed to acquire business services firm Thiqah from the country's sovereign wealth fund Public Investment Fund in a deal valued at 3.4 billion riyals ($906.4 million).
Prince Alwaleed Bin Talal's investment company Kingdom Holding (KHC) (4280.SE), opens new tab advanced 3.2%, after its CEO told Al Arabiya TV that the firm would be interested in investing in ByteDance's TikTok if Elon Musk or others stepped in to buy it.
Outside the Gulf, EGypt's blue-chip index (.EGX30), opens new tab rose 0.5%, as most of its constituents were in positive territory.
The Egyptian stock market continued its upward momentum, driven by sustained optimism and eased geopolitical tensions, which contributed to the market's recovery, said Milad Azar Market analyst at XTB MENA.
Tuesday, 21 January 2025
#Saudi wealth fund ramps up efforts to tap ETF investors
Saudi wealth fund ramps up efforts to tap ETF investors
The Saudi Arabian sovereign wealth fund’s investment in a recently launched exchange traded fund underlines the kingdom’s growing interest in using the mass-market fund structure to develop its capital markets.
The Saudi Arabian sovereign wealth fund’s investment in a recently launched exchange traded fund underlines the kingdom’s growing interest in using the mass-market fund structure to develop its capital markets.
The Saudi Public Investment Fund has stumped up $200mn as a seed investor in State Street Global Advisors’ Europe-listed SPDR JPMorgan Saudi Arabia Aggregate Bond Ucits ETF, which launched in December.
The ETF provides exposure to US dollar-denominated Saudi sovereign and quasi-sovereign bonds with an average maturity of about 10 years. It is believed to be the first Saudi bond ETF to be listed in Europe or the US.
According to its latest strategy report, the PIF’s mandate is to act as an “economic catalyst” for Saudi Arabia at a time when the kingdom aims to diversify the economy away from oil and to develop its capital markets with the ambitious Vision 2030 development programme.
While a bond fund is a new proposition for overseas investors, US and European investors have had access to Saudi equity ETFs for years. The $634mn iShares MSCI Saudi Arabia ETF launched in 2015 and the $18mn Franklin FTSE Saudi Arabia Fund followed in 2018.
Each fund has a European version: the $414mn iShares MSCI Saudi Arabia Capped Ucits ETF, launched in 2019, and the $1.3mn Franklin FTSE Saudi Arabia Ucits, unveiled in October 2024.
But perhaps inspired by the rapid growth of the $15tn global ETF industry, Saudi Arabia has recently ramped up efforts to encourage investors in China and Japan to pump money into its stock market via ETFs.
The PIF was a cornerstone investor in Mizuho Financial Group’s One ETF FTSE Saudi Arabia Index fund, injecting $100mn into the vehicle that listed on the Tokyo stock exchange on December 12.
The PIF was also a seed investor for the first Saudi Arabia ETF in the Asia-Pacific region — the CSOP Saudi Arabia ETF, which launched in Hong Kong in November 2023.
Two China-listed exchange traded funds tracking Saudi equities, which launched in July last year, are feeder ETFs for the Hong Kong vehicle.
Saudi Arabia has also included ETFs in it efforts to increase its outward portfolio investment. A Saudi-listed ETF tracking Hong Kong-listed companies debuted in October last year.
Emmanuel Laurina, head of Middle East, Africa and official institutions at SSGA, said its Saudi bond fund was aimed at “institutional, intermediary and retail investors” who wanted to take a “medium- or long-term exposure” to the performance of US dollar-denominated sovereign or quasi sovereign bonds.
He said the decision to list in Europe — via the London Stock Exchange and Xetra in Frankfurt — had been driven by client demand.
SSGA said the ETF would serve global investors looking to gain access to the local bond market, which was “continuing to mature” due to the huge infrastructure needs of Saudi Arabia’s Vision 2030.
It carries a total expense ratio of 0.37 per cent, rendering it cheaper than the iShares and Franklin equity ETF vehicles that are priced at between 0.39 per cent and 0.75 per cent. The fund will not only allow easier access to local bonds than buying them directly, but also offer diversification across issuers and yield curves, Laurina said.
An HSBC report looking at Saudi Arabia’s international trade outlook published in October last year notes a number of positives including that Saudi Arabia’s non-oil activities contributed more than 50 per cent to GDP for the first time in modern times in 2023, indicating success in diversifying the economy beyond oil.
However, with foreign direct investment lagging behind Saudi aspirations, the kingdom had to scale back some of its plans.
Kenneth Lamont, principal at Morningstar, said PIF’s injections of seed capital would elevate the ETF above most fund selectors’ minimum size criteria.
“More than anything this is a move designed to boost credibility and attract interest,” he said.
But, in reference to the SSGA launch, he added that the ETF would only be successful if the investment rationale for Saudi debt was compelling enough.
In contrast to Japan’s decision to support its equity market by buying ETFs, he said Saudi Arabia was using ETFs as part of its longer-term strategic goal of developing its financial markets and diversifying its economy away from oil.
However, he added that such lofty ambitions did not always end on a positive note. The KMEFIC FTSE Kuwait Equity ETF, which launched in Europe via white-label platform HANetf in 2019 to attract foreign investment as the Gulf state made efforts to diversify its economy, closed less than two years later after failing to attract sufficient investment.
“PIF continues to create opportunities, open gateways and enable access to Saudi Arabia’s diverse and dynamic capital market,” said Yazeed Al-Humied, deputy governor and head of Mena investments at PIF.
“PIF’s investment into the new Saudi ETF further deepens the Saudi market, while attracting investors from across Europe and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” he added.
#UAE Criticizes EU for Keeping Nation on Dirty-Money ‘Black List’ - Bloomberg
UAE Criticizes EU for Keeping Nation on Dirty-Money ‘Black List’ - Bloomberg
The United Arab Emirates criticized the European Union for keeping the country on a “black list” of countries with strategic deficiencies in combating illicit money flows.
In an interview at the World Economic Forum in Davos, Switzerland, Economy Minister Abdulla bin Touq Al Marri also said the UAE would hold talks with the EU about its labor requirements.
“The question of the EU black list, this is a question for them,” he said. “I do not understand how the UAE is still on the black list.”
The UAE is making diplomatic efforts to resolve the situation, he said, without giving any indication of whether the EU’s stance is shifting.
The EU regularly assesses third countries’ efforts against money laundering and the financing of international terrorism and has yet to drop the UAE from its black list. That’s despite the Paris-based Financial Action Task Force — a global body — removing the UAE from its “gray list” last year.
“The UAE managed to get out of the gray list in record time, based on assessment and based on people who come on site and scrutinize your systems for weeks and months,” said Al Marri.
The minister also expressed concerns about an EU directive that will potentially penalize imports from countries that don’t allow for trade unions.
“You can’t dictate what other countries do with their labor systems and management,” he said. “What works in the UAE works.”
It is “really going to challenge” the oil and natural gas industries, he said.
The UAE, an OPEC member, ships little of its crude to Europe, according to data compiled by Bloomberg. But it is planning to export more of its liquefied natural gas there.
Qatar, one of the world’s biggest LNG producers, has voiced similar criticism about the EU’s climate directives and said they may result in less fuel being sent to the bloc.
The EU didn’t immediately respond to a request for comment on both issues.
Al Marri also reiterated that while the UAE has introduced corporate tax, it has no plans to start income taxes.
“There’s a lot of speculation on that,” he said. “It’s not on the table. It’s not in the rooms of discussions. It’s not being discussed in the meetings. It’s not coming anytime soon.”
The United Arab Emirates criticized the European Union for keeping the country on a “black list” of countries with strategic deficiencies in combating illicit money flows.
In an interview at the World Economic Forum in Davos, Switzerland, Economy Minister Abdulla bin Touq Al Marri also said the UAE would hold talks with the EU about its labor requirements.
“The question of the EU black list, this is a question for them,” he said. “I do not understand how the UAE is still on the black list.”
The UAE is making diplomatic efforts to resolve the situation, he said, without giving any indication of whether the EU’s stance is shifting.
The EU regularly assesses third countries’ efforts against money laundering and the financing of international terrorism and has yet to drop the UAE from its black list. That’s despite the Paris-based Financial Action Task Force — a global body — removing the UAE from its “gray list” last year.
“The UAE managed to get out of the gray list in record time, based on assessment and based on people who come on site and scrutinize your systems for weeks and months,” said Al Marri.
The minister also expressed concerns about an EU directive that will potentially penalize imports from countries that don’t allow for trade unions.
“You can’t dictate what other countries do with their labor systems and management,” he said. “What works in the UAE works.”
It is “really going to challenge” the oil and natural gas industries, he said.
The UAE, an OPEC member, ships little of its crude to Europe, according to data compiled by Bloomberg. But it is planning to export more of its liquefied natural gas there.
Qatar, one of the world’s biggest LNG producers, has voiced similar criticism about the EU’s climate directives and said they may result in less fuel being sent to the bloc.
The EU didn’t immediately respond to a request for comment on both issues.
Al Marri also reiterated that while the UAE has introduced corporate tax, it has no plans to start income taxes.
“There’s a lot of speculation on that,” he said. “It’s not on the table. It’s not in the rooms of discussions. It’s not being discussed in the meetings. It’s not coming anytime soon.”
Most Gulf markets end subdued on Trump's trade plans | Reuters
Most Gulf markets end subdued on Trump's trade plans | Reuters
Most stock markets in the Gulf ended subdued on Tuesday, as investors exercised caution after U.S. President Donald Trump said he was thinking about imposing trade tariffs on neighbouring countries just hours into his presidency.
Global investors were on edge after the president suggested he could impose 25% tariffs on Mexico and Canada, with a potential implementation date of Feb. 1, challenging suggestions that his trade policy might be more gradual.
The Trump administration's policies may have significant and widespread impacts on the U.S. economy, potentially influencing the value of the dollar, Treasury yields and inflation rates. This, in turn, could lead to fewer interest rate cuts, as the Federal Reserve may adjust its monetary policy in response.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, hit by a 3.5% fall in ACWA Power Company (2082.SE), opens new tab.
In Qatar, the index (.QSI), opens new tab finished flat.
Oil prices - a catalyst for the Gulf's financial markets - fell as investors assessed Trump's plans for tariffs while boosting oil and gas production in the United States.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.9%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.7%, led by a 0.8% rise in Commercial International Bank (COMI.CA), opens new tab.
Egypt's economy will grow by 4.0% in the year to the end of June as IMF measures continue to help improve its economic environment, a Reuters poll forecast on Monday.
Most stock markets in the Gulf ended subdued on Tuesday, as investors exercised caution after U.S. President Donald Trump said he was thinking about imposing trade tariffs on neighbouring countries just hours into his presidency.
Global investors were on edge after the president suggested he could impose 25% tariffs on Mexico and Canada, with a potential implementation date of Feb. 1, challenging suggestions that his trade policy might be more gradual.
The Trump administration's policies may have significant and widespread impacts on the U.S. economy, potentially influencing the value of the dollar, Treasury yields and inflation rates. This, in turn, could lead to fewer interest rate cuts, as the Federal Reserve may adjust its monetary policy in response.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, hit by a 3.5% fall in ACWA Power Company (2082.SE), opens new tab.
In Qatar, the index (.QSI), opens new tab finished flat.
Oil prices - a catalyst for the Gulf's financial markets - fell as investors assessed Trump's plans for tariffs while boosting oil and gas production in the United States.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.9%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.7%, led by a 0.8% rise in Commercial International Bank (COMI.CA), opens new tab.
Egypt's economy will grow by 4.0% in the year to the end of June as IMF measures continue to help improve its economic environment, a Reuters poll forecast on Monday.
Monday, 20 January 2025
Most Gulf bourses rise on Gaza ceasefire | Reuters
Most Gulf bourses rise on Gaza ceasefire | Reuters
Most stock markets in the Gulf ended higher on Monday, helped by the ceasefire deal between Israel and Palestinian militant group Hamas, while investors awaited key policy announcements from U.S. President Donald Trump's incoming administration.
Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on Sunday, the first day of a ceasefire that suspends a 15-month-old war that has devastated the Gaza Strip and inflamed the Middle East.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, with ACWA Power Company (2082.SE), opens new tab advancing 4.4% and Etihad Etisalat Company (7020.SE), opens new tab increasing 1.8%.
In Abu Dhabi, the index (.FTFADGI), opens new tab nudged 0.1% higher.
Oil prices - a catalyst for the Gulf's financial markets - were steady as traders awaited Donald Trump's inauguration in the hope of some clarity on his policy agenda, including plans to end the Russia-Ukraine war.
The Qatari benchmark (.QSI), opens new tab rose 0.4%, led by a 2.2% gain in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Trump is widely expected to make a flurry of policy announcements in the first hours of his second term as U.S. president.
Dubai's main share index (.DFMGI), opens new tab dropped 0.3%, hit by a 2.9% fall in toll operator Salik Company (SALIK.DU), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.4%, with Commercial International Bank Egypt (COMI.CA), opens new tab falling 0.9%.
Most stock markets in the Gulf ended higher on Monday, helped by the ceasefire deal between Israel and Palestinian militant group Hamas, while investors awaited key policy announcements from U.S. President Donald Trump's incoming administration.
Hamas released three Israeli hostages and Israel released 90 Palestinian prisoners on Sunday, the first day of a ceasefire that suspends a 15-month-old war that has devastated the Gaza Strip and inflamed the Middle East.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, with ACWA Power Company (2082.SE), opens new tab advancing 4.4% and Etihad Etisalat Company (7020.SE), opens new tab increasing 1.8%.
In Abu Dhabi, the index (.FTFADGI), opens new tab nudged 0.1% higher.
Oil prices - a catalyst for the Gulf's financial markets - were steady as traders awaited Donald Trump's inauguration in the hope of some clarity on his policy agenda, including plans to end the Russia-Ukraine war.
The Qatari benchmark (.QSI), opens new tab rose 0.4%, led by a 2.2% gain in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Trump is widely expected to make a flurry of policy announcements in the first hours of his second term as U.S. president.
Dubai's main share index (.DFMGI), opens new tab dropped 0.3%, hit by a 2.9% fall in toll operator Salik Company (SALIK.DU), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.4%, with Commercial International Bank Egypt (COMI.CA), opens new tab falling 0.9%.
Sunday, 19 January 2025
Most Gulf markets gain on US manufacturing growth | Reuters
Most Gulf markets gain on US manufacturing growth | Reuters
Most stock markets in the Gulf ended higher on Sunday, driven by an uptick in U.S. manufacturing output in December, as traders assessed the potential implications of U.S. tariffs under the incoming administration of President-elect Donald Trump.
Federal Reserve data on Friday showed U.S. manufacturing output increased 0.6% last month after an upwardly revised 0.4% rebound in November, likely as production picked up after a factory worker strike ended.
On Wednesday, softer core inflation data and comments from Fed Governor Christopher Waller on Thursday signalling potential rate cuts in 2025 boosted stocks towards the end of the week.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, led by a 4.6% rise in ACWA Power Company (2082.SE), opens new tab and a 1.3% increase in Saudi National Bank (SNB) (1180.SE), opens new tab. SNB, the kingdom's biggest lender, is to buy back up to 16 million shares.
Meanwhile, the International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.
In Qatar, the index (.QSI), opens new tab finished flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with El Sewedy Electric (SWDY.CA), opens new tab advancing 5.1%.
Most stock markets in the Gulf ended higher on Sunday, driven by an uptick in U.S. manufacturing output in December, as traders assessed the potential implications of U.S. tariffs under the incoming administration of President-elect Donald Trump.
Federal Reserve data on Friday showed U.S. manufacturing output increased 0.6% last month after an upwardly revised 0.4% rebound in November, likely as production picked up after a factory worker strike ended.
On Wednesday, softer core inflation data and comments from Fed Governor Christopher Waller on Thursday signalling potential rate cuts in 2025 boosted stocks towards the end of the week.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, led by a 4.6% rise in ACWA Power Company (2082.SE), opens new tab and a 1.3% increase in Saudi National Bank (SNB) (1180.SE), opens new tab. SNB, the kingdom's biggest lender, is to buy back up to 16 million shares.
Meanwhile, the International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.
In Qatar, the index (.QSI), opens new tab finished flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with El Sewedy Electric (SWDY.CA), opens new tab advancing 5.1%.
Friday, 17 January 2025
IMF lowers 2025 #SaudiArabia growth forecast on extended oil production cuts | Reuters
IMF lowers 2025 Saudi Arabia growth forecast on extended oil production cuts | Reuters
The International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.
It also trimmed its 2024 growth estimate for the Gulf state to 1.4%.
In its October Regional Economic Outlook report, the IMF had estimated growth would accelerate to 4.6% this year, from a projected 1.5% in 2024.
The cut to Saudi Arabia's GDP forecast led to an overall lowering of the IMF's growth projection for the Middle East and Central Asia region to 3.6% this year. That was down from its October forecast of 3.9%.
"In the Middle East and Central Asia, growth is projected to pick up, but less than expected in October," the IMF said in Friday's update.
"This mainly reflects a 1.3 percentage point downward revision to 2025 growth in Saudi Arabia, mostly driven by the extension of OPEC+ production cuts."
Most analysts expected economic growth in Saudi Arabia, the world's biggest oil exporter, to pick up sharply in 2025 on higher oil output after two years of modest growth. An October Reuters poll forecast the Saudi economy would expand 4.4% in 2025, while the Saudi government projects 2025 growth at 4.6%.
But in December, the OPEC+ nations, which include Saudi Arabia, pushed back the start of oil output rises by three months until April, and further extended the full unwinding of cuts due to weak demand and rising production outside the group.
Declining oil prices and extended cuts to oil production have weighed on Saudi Arabia's revenue in recent years, but Riyadh is pushing ahead with a spending plan to boost non-oil growth and deliver on its economic transformation plan.
The IMF said it expected energy commodity prices to decline by 2.6% in 2025, more than assumed in October.
The International Monetary Fund has lowered its 2025 GDP growth projection for Saudi Arabia to 3.3%, mainly due to extended oil production cuts, it said on Friday in the latest update to its global outlook.
It also trimmed its 2024 growth estimate for the Gulf state to 1.4%.
In its October Regional Economic Outlook report, the IMF had estimated growth would accelerate to 4.6% this year, from a projected 1.5% in 2024.
The cut to Saudi Arabia's GDP forecast led to an overall lowering of the IMF's growth projection for the Middle East and Central Asia region to 3.6% this year. That was down from its October forecast of 3.9%.
"In the Middle East and Central Asia, growth is projected to pick up, but less than expected in October," the IMF said in Friday's update.
"This mainly reflects a 1.3 percentage point downward revision to 2025 growth in Saudi Arabia, mostly driven by the extension of OPEC+ production cuts."
Most analysts expected economic growth in Saudi Arabia, the world's biggest oil exporter, to pick up sharply in 2025 on higher oil output after two years of modest growth. An October Reuters poll forecast the Saudi economy would expand 4.4% in 2025, while the Saudi government projects 2025 growth at 4.6%.
But in December, the OPEC+ nations, which include Saudi Arabia, pushed back the start of oil output rises by three months until April, and further extended the full unwinding of cuts due to weak demand and rising production outside the group.
Declining oil prices and extended cuts to oil production have weighed on Saudi Arabia's revenue in recent years, but Riyadh is pushing ahead with a spending plan to boost non-oil growth and deliver on its economic transformation plan.
The IMF said it expected energy commodity prices to decline by 2.6% in 2025, more than assumed in October.
#UAE bourses close lower ahead of fourth-quarter earnings | Reuters
UAE bourses close lower ahead of fourth-quarter earnings | Reuters
Stock markets in the United Arab Emirates closed lower on Friday, despite rising oil prices, ahead of the upcoming earnings season.
Dubai's main market (.DFMGI), opens new tab declined 0.5%, extending losses from the previous session, as the majority of stocks were trading in negative territory. The industrial and utilities sectors were the major contributors to losses in the index.
Dubai's toll gate operator Salik Company (SALIK.DU), opens new tab slipped 2.9% and state-run utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab shed 2.2%.
Dubai's blue chip developer Emaar Properties (EMAR.DU), opens new tab said on Thursday it is in talks with "a few groups" in India, including Adani Group, to sell a stake in its Indian business.
Emaar's shares closed 0.4% down.
Dubai market recorded its second consecutive negative performance, with profit-taking weighing on the final session of the week, said Samer Hasn, Senior Market Analyst at XS.com.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged lower 0.1%, simulating the previous session's loss.
The UAE's largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, and Abu Dhabi Commercial Bank (ADCB.AD), opens new tab were driving losses in the index with declines of 0.7% and 1.1% respectively.
Reuters, citing sources, reported on Thursday that Sameh Al Qubaisi, head of global markets, and Suhail Bin Tarraf, the bank's chief operating officer, are set to depart from FAB.
Oil prices - a key contributor to Gulf's economies - rose on Friday as latest U.S. sanctions on Russian energy trade heightened expectations for oil supply disruptions.
Stock markets in the United Arab Emirates closed lower on Friday, despite rising oil prices, ahead of the upcoming earnings season.
Dubai's main market (.DFMGI), opens new tab declined 0.5%, extending losses from the previous session, as the majority of stocks were trading in negative territory. The industrial and utilities sectors were the major contributors to losses in the index.
Dubai's toll gate operator Salik Company (SALIK.DU), opens new tab slipped 2.9% and state-run utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab shed 2.2%.
Dubai's blue chip developer Emaar Properties (EMAR.DU), opens new tab said on Thursday it is in talks with "a few groups" in India, including Adani Group, to sell a stake in its Indian business.
Emaar's shares closed 0.4% down.
Dubai market recorded its second consecutive negative performance, with profit-taking weighing on the final session of the week, said Samer Hasn, Senior Market Analyst at XS.com.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged lower 0.1%, simulating the previous session's loss.
The UAE's largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, and Abu Dhabi Commercial Bank (ADCB.AD), opens new tab were driving losses in the index with declines of 0.7% and 1.1% respectively.
Reuters, citing sources, reported on Thursday that Sameh Al Qubaisi, head of global markets, and Suhail Bin Tarraf, the bank's chief operating officer, are set to depart from FAB.
Oil prices - a key contributor to Gulf's economies - rose on Friday as latest U.S. sanctions on Russian energy trade heightened expectations for oil supply disruptions.
#Saudi Listings Grab the Spotlight in Gulf’s IPO Boom - Bloomberg
Saudi Listings Grab the Spotlight in Gulf’s IPO Boom - Bloomberg
Initial public offerings from Saudi Arabia have been the star performers in a string of recent share sales in the Middle East, where some high profile regional listings have had tepid debuts in the last few months.
Two Saudi companies, Almoosa Health Co. and Nice One Beauty Digital Marketing Co., both posted strong early returns in their trading debuts in January and remain above the offer price.
While not all Saudi listings have done well over the past 12 months – including three flour millers and a real estate investment trust which are still below offer price – stocks that went public in the kingdom have seen more first-day pops and better after-market performance than in any other Gulf bourse, data compiled by Bloomberg show.
It’s a contrast with three of the region’s largest listings last year. Talabat Holding Plc and Lulu Retail Holdings Plc from the United Arab Emirates as well as Oman’s OQ Exploration & Production SAOG all saw disappointing starts. Today, only Talabat is slightly above offer price out of the trio. Aside from Parkin Co.’s blowout Dubai IPO, all other newly-listed stocks in the UAE have seen more muted gains.
“The bullish euphoria surrounding the primary listings in Saudi Arabia shows no signs of stopping,” said Vijay Valecha, chief investment officer at UAE-based broker Century Financial, pointing to a “glaring contrast” between newly-listed stocks in Saudi and elsewhere in the region.
The average performance of stocks that listed over the past year in the UAE has been 17%, but in Saudi Arabia, the average post-listing gains were 37% over the same period, Valecha said.
Saudi Arabia, which has a much larger population of over 35 million than the UAE’s roughly 11 million, also has much deeper and liquid capital markets, both in the institutional and retail space, analysts say. According to ratings agency Fitch, Saudi Arabia has the largest asset management industry in the Gulf Cooperation Council, with over $250 billion in assets under management as of June 2024.
“Saudi IPOs benefit from a much broader domestic investor base to absorb supply, and a larger market capitalization overall,” said Ashish Marwah, director and chief investment officer at Neovision Wealth Management.
Companies listed in Saudi Arabia are worth around $2.7 trillion, and although more than half of this is made up by oil giant Saudi Aramco, it still dwarfs the roughly $1 trillion value of the stocks listed on the UAE’s two bourses, according to data compiled by Bloomberg. A larger population also translates into a bigger consumer market, which coupled with growth outside of the oil sector, has benefitted retailers and health-care providers among others.
To be sure, analysts have said stretched valuations, as well as last-minute increases in the deals, are partly to blame for the tepid debuts of Talabat and Lulu Retail.
Those IPOs were among the region’s largest in 2024, requiring more demand to fully subscribe to the offering. In Saudi Arabia, listings have tended to be from small to mid-sized players, Valecha pointed out.
Dubai’s benchmark index has broadly performed better over the last year than Tadawul’s, partly driven by some newer listings like Parkin that saw outsized returns as well as a December rally in the stock of developer Emaar Properties PJSC. Still, when it comes to new share sales, Saudi Arabia has proved a better bet for investors on average.
“In the UAE, markets have handsomely rewarded some listings by government-owned entities, whereas others, particularly private players, have suffered miserably or have seen lackluster gains,” Valecha said. “In the case of Saudi Arabia, the gains have been much more broad-based.”
Initial public offerings from Saudi Arabia have been the star performers in a string of recent share sales in the Middle East, where some high profile regional listings have had tepid debuts in the last few months.
Two Saudi companies, Almoosa Health Co. and Nice One Beauty Digital Marketing Co., both posted strong early returns in their trading debuts in January and remain above the offer price.
While not all Saudi listings have done well over the past 12 months – including three flour millers and a real estate investment trust which are still below offer price – stocks that went public in the kingdom have seen more first-day pops and better after-market performance than in any other Gulf bourse, data compiled by Bloomberg show.
It’s a contrast with three of the region’s largest listings last year. Talabat Holding Plc and Lulu Retail Holdings Plc from the United Arab Emirates as well as Oman’s OQ Exploration & Production SAOG all saw disappointing starts. Today, only Talabat is slightly above offer price out of the trio. Aside from Parkin Co.’s blowout Dubai IPO, all other newly-listed stocks in the UAE have seen more muted gains.
“The bullish euphoria surrounding the primary listings in Saudi Arabia shows no signs of stopping,” said Vijay Valecha, chief investment officer at UAE-based broker Century Financial, pointing to a “glaring contrast” between newly-listed stocks in Saudi and elsewhere in the region.
The average performance of stocks that listed over the past year in the UAE has been 17%, but in Saudi Arabia, the average post-listing gains were 37% over the same period, Valecha said.
Saudi Arabia, which has a much larger population of over 35 million than the UAE’s roughly 11 million, also has much deeper and liquid capital markets, both in the institutional and retail space, analysts say. According to ratings agency Fitch, Saudi Arabia has the largest asset management industry in the Gulf Cooperation Council, with over $250 billion in assets under management as of June 2024.
“Saudi IPOs benefit from a much broader domestic investor base to absorb supply, and a larger market capitalization overall,” said Ashish Marwah, director and chief investment officer at Neovision Wealth Management.
Companies listed in Saudi Arabia are worth around $2.7 trillion, and although more than half of this is made up by oil giant Saudi Aramco, it still dwarfs the roughly $1 trillion value of the stocks listed on the UAE’s two bourses, according to data compiled by Bloomberg. A larger population also translates into a bigger consumer market, which coupled with growth outside of the oil sector, has benefitted retailers and health-care providers among others.
To be sure, analysts have said stretched valuations, as well as last-minute increases in the deals, are partly to blame for the tepid debuts of Talabat and Lulu Retail.
Those IPOs were among the region’s largest in 2024, requiring more demand to fully subscribe to the offering. In Saudi Arabia, listings have tended to be from small to mid-sized players, Valecha pointed out.
Dubai’s benchmark index has broadly performed better over the last year than Tadawul’s, partly driven by some newer listings like Parkin that saw outsized returns as well as a December rally in the stock of developer Emaar Properties PJSC. Still, when it comes to new share sales, Saudi Arabia has proved a better bet for investors on average.
“In the UAE, markets have handsomely rewarded some listings by government-owned entities, whereas others, particularly private players, have suffered miserably or have seen lackluster gains,” Valecha said. “In the case of Saudi Arabia, the gains have been much more broad-based.”
Thursday, 16 January 2025
#Dubai's Emaar in talks with Indian groups, including Adani, to sell stake in local business | Reuters
Dubai's Emaar in talks with Indian groups, including Adani, to sell stake in local business | Reuters
Emaar Properties (EMAR.DU), opens new tab, Dubai's largest listed real estate firm, is in talks with "a few groups" in India including Adani Group to sell a stake of its Indian business, it said on Thursday.
The builder of the world's tallest building, the Burj Khalifa, and other iconic parts of Dubai, said in a statement that the valuation and other terms of a potential deal were not finalised, without adding further details.
The statement followed media reports on Wednesday stating that Adani Realty, the real estate unit of Indian billionaire Gautam Adani's Adani Enterprise (ADEL.NS), opens new tab, was in advanced talks to acquire a majority stake in Emaar India.
Emaar started its operations in the country in 2005 and has a portfolio of residential and commercial properties in Gurugram, Mohali, Lucknow, Jaipur and Indore, according to its website.
Besides India, it operates internationally in other markets including Saudi Arabia, Turkey and the US.
Emaar Properties (EMAR.DU), opens new tab, Dubai's largest listed real estate firm, is in talks with "a few groups" in India including Adani Group to sell a stake of its Indian business, it said on Thursday.
The builder of the world's tallest building, the Burj Khalifa, and other iconic parts of Dubai, said in a statement that the valuation and other terms of a potential deal were not finalised, without adding further details.
The statement followed media reports on Wednesday stating that Adani Realty, the real estate unit of Indian billionaire Gautam Adani's Adani Enterprise (ADEL.NS), opens new tab, was in advanced talks to acquire a majority stake in Emaar India.
Emaar started its operations in the country in 2005 and has a portfolio of residential and commercial properties in Gurugram, Mohali, Lucknow, Jaipur and Indore, according to its website.
Besides India, it operates internationally in other markets including Saudi Arabia, Turkey and the US.
Most Gulf markets gain on Fed rate cuts, Gaza ceasefire | Reuters
Most Gulf markets gain on Fed rate cuts, Gaza ceasefire | Reuters
Most stock markets in the Gulf ended higher on Thursday, driven by softer core U.S. inflation data that fuelled hopes for Federal Reserve rate cuts.
Data showed on Wednesday the U.S. consumer price index (CPI) rose 2.9% year on year in December, meeting expectations, while core inflation increased by 3.2%, marginally below the predicted 3.3%.
Investors drew encouragement from the inflation data, which was further bolstered by Tuesday's release of U.S. producer price data showing moderate growth in December.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.5% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab advancing 1.3%.
In Qatar, the index (.QSI), opens new tab ended 0.4% higher, led by a 2.4% increase in Commercial Bank (COMB.QA), opens new tab and a 1.5% rise in Dukhan Bank (DUBK.QA), opens new tab ahead of its earnings announcement.
Meanwhile, Hamas and Israel reached a deal for a ceasefire in Gaza that mediators said would take effect on Sunday and include a release of hostages held there during 15 months of bloodshed that devastated the Palestinian enclave and inflamed the Middle East.
Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 3.9% slide in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
However, Emaar Properties (EMAR.DU), opens new tab added 0.8%, after Dubai's largest listed real estate firm said on Thursday it is in talks with "a few groups" in India including Adani Group to sell a stake of its Indian business.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.7%, with Commercial International Bank (COMI.CA), opens new tab rising 1.1%.
Most stock markets in the Gulf ended higher on Thursday, driven by softer core U.S. inflation data that fuelled hopes for Federal Reserve rate cuts.
Data showed on Wednesday the U.S. consumer price index (CPI) rose 2.9% year on year in December, meeting expectations, while core inflation increased by 3.2%, marginally below the predicted 3.3%.
Investors drew encouragement from the inflation data, which was further bolstered by Tuesday's release of U.S. producer price data showing moderate growth in December.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.4%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.5% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab advancing 1.3%.
In Qatar, the index (.QSI), opens new tab ended 0.4% higher, led by a 2.4% increase in Commercial Bank (COMB.QA), opens new tab and a 1.5% rise in Dukhan Bank (DUBK.QA), opens new tab ahead of its earnings announcement.
Meanwhile, Hamas and Israel reached a deal for a ceasefire in Gaza that mediators said would take effect on Sunday and include a release of hostages held there during 15 months of bloodshed that devastated the Palestinian enclave and inflamed the Middle East.
Dubai's main share index (.DFMGI), opens new tab fell 0.3%, hit by a 3.9% slide in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
However, Emaar Properties (EMAR.DU), opens new tab added 0.8%, after Dubai's largest listed real estate firm said on Thursday it is in talks with "a few groups" in India including Adani Group to sell a stake of its Indian business.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.7%, with Commercial International Bank (COMI.CA), opens new tab rising 1.1%.
Wednesday, 15 January 2025
Most Gulf markets end higher ahead of US CPI | Reuters
Most Gulf markets end higher ahead of US CPI | Reuters
Most stock markets in the Gulf ended higher on Wednesday ahead of highly anticipated U.S. consumer price index data, which could potentially reshape the outlook for monetary policy in the world's largest economy.
The upcoming data holds significant implications for markets, with forecasts of a modest 0.2% increase in the core measure. A strong reading of 0.3% or more could see the relentless selling in global stocks and bonds resume.
Overnight, U.S. producer price data for December was surprisingly tame, with the core measure flat in the month.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with the country's biggest lender Saudi National Bank (1180.SE), opens new tab rising 2.8%, while Saudi Arabian Mining Co (Maaden) (1211.SE), opens new tab advanced 1.5%.
Oil giant Saudi Aramco (2222.SE), opens new tab and Maaden are signing a preliminary agreement that could result in them establishing a joint venture for mineral exploration and extraction, Aramco's upstream president Nasir Al-Naimi said on Wednesday.
However, shares of Aramco concluded flat.
Dubai's mains share index (.DFMGI), opens new tab nudged 0.1% higher, helped by a 4.4% jump in Emirates Integrated Telecommunications Co (DU.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets -crept higher as the market focused on potential supply disruptions from sanctions on Russian tankers, though gains were tempered by a lack of clarity on their impact.
The Qatari benchmark (.QSI), opens new tab gained 0.4%, led by a 1.2% rise in Qatar Islamic Bank (QIB) (QISB.QA), opens new tab.
After trading hours, QIB reported a net profit of 4.61 billion riyals ($1.26 billion) for 2024, a 7% increase year-on-year.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.5%, extending gains from the previous session when it snapped a five-day losing streak.
Most stock markets in the Gulf ended higher on Wednesday ahead of highly anticipated U.S. consumer price index data, which could potentially reshape the outlook for monetary policy in the world's largest economy.
The upcoming data holds significant implications for markets, with forecasts of a modest 0.2% increase in the core measure. A strong reading of 0.3% or more could see the relentless selling in global stocks and bonds resume.
Overnight, U.S. producer price data for December was surprisingly tame, with the core measure flat in the month.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with the country's biggest lender Saudi National Bank (1180.SE), opens new tab rising 2.8%, while Saudi Arabian Mining Co (Maaden) (1211.SE), opens new tab advanced 1.5%.
Oil giant Saudi Aramco (2222.SE), opens new tab and Maaden are signing a preliminary agreement that could result in them establishing a joint venture for mineral exploration and extraction, Aramco's upstream president Nasir Al-Naimi said on Wednesday.
However, shares of Aramco concluded flat.
Dubai's mains share index (.DFMGI), opens new tab nudged 0.1% higher, helped by a 4.4% jump in Emirates Integrated Telecommunications Co (DU.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets -crept higher as the market focused on potential supply disruptions from sanctions on Russian tankers, though gains were tempered by a lack of clarity on their impact.
The Qatari benchmark (.QSI), opens new tab gained 0.4%, led by a 1.2% rise in Qatar Islamic Bank (QIB) (QISB.QA), opens new tab.
After trading hours, QIB reported a net profit of 4.61 billion riyals ($1.26 billion) for 2024, a 7% increase year-on-year.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.5%, extending gains from the previous session when it snapped a five-day losing streak.
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