Most Gulf bourses gain ahead of US economic data | Reuters

Most Gulf bourses gain ahead of US economic data | Reuters

Most stock markets in the Gulf ended higher on Monday as investors looked to minutes of the U.S. Federal Reserve's most recent meeting and payrolls data due later in the week for clues on the central bank's interest rate path.

Analysts expect U.S. December payrolls to have risen by 150,000, with unemployment holding at 4.2%. The data will be released on Friday.

Minutes of the Fed's December meeting due on Wednesday will show whether its "dot plot" rate targets have shifted, while at least seven top policymakers speak this week including influential Fed Governor Christopher Waller.

Fed decisions have a significant impact on the Gulf region's monetary policy as most of its currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.3%, with the country's biggest lender Saudi National Bank (1180.SE), opens new tab climbing 1.1% and Al Rajhi Bank (1120.SE), opens new tab closing 0.3% higher.

Oil prices - a catalyst for the Gulf's financial markets - steadied at their highest since mid-October as colder weather spurred buying while further support came from expectations of tighter sanctions on Iranian and Russian oil exports.

Separately, Saudi Arabia is tapping global debt markets with a planned three-part bond sale on Monday, fixed income news service IFR reported, with proceeds expected to help cover its budget deficit and pay down debt.

Dubai's main share index (.DFMGI), opens new tab advanced 1.3%, ending at its highest in over 10 years, buoyed by a 4.9% surge in top lender Emirates NBD (ENBD.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab finished 1.1% higher.

The United Arab Emirates' non-oil private sector expanded at its fastest pace in nine months in December, driven by strong demand and increased business activity, a survey showed on Monday.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.8%, ending a three-day winning streak, hit by a 4.1% slide in tobacco monopoly Eastern Company (EAST.CA), opens new tab.

#SaudiArabia Plans $37 Billion Borrowing Spree to Pay For Huge Projects - Bloomberg

Saudi Arabia Plans $37 Billion Borrowing Spree to Pay For Huge Projects - Bloomberg

Saudi Arabia, one of the largest bond issuers in emerging markets last year, has started 2025 with a funding spree as the country fuels its vast economic transformation plan.

The kingdom’s sovereign wealth fund signed a $7 billion Islamic loan with a group of 20 international and regional banks, it said Monday. The announcement came hours after the finance ministry began a dollar-bond sale and days after it raised $2.5 billion from three foreign banks.

Under Crown Prince Mohammed bin Salman’s Vision 2030 agenda to transform the world’s biggest crude-oil exporter, the government is spending hundreds of billions of dollars on everything from new cities such as Neom to electric vehicles and semiconductors. It’s also hosting the men’s football World Cup in 2034.

Its budget is forecast to remain in deficit for the next few years at least, meaning it has to rely more on borrowing.

Brent crude is trading around $76 a barrel, below Saudi Arabia’s required level of more than $90 per barrel to balance its budget in 2025, according to the International Monetary Fund.

Saudi officials have said that some of their huge spending plans will be delayed while it focuses on priority investments, like preparing to host the Asian Games in 2027 and the World Cup. That’s partly due to funding constraints and to avoid overheating the economy, they have said.

Dollar Bond
The government started the process of selling its first bond of the year on Monday, a three-tranche dollar deal, according to a person familiar with the matter. Combined investor bids exceeded $30.5 billion, excluding the interest of the joined lead managers, the person added.

Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. are the main banks managing the transaction.

Pricing on the shortest tranche was tightened by 35 basis points to 85 basis points over US Treasuries. It moved by 30 basis points for both the six-year notes and for the longest bond. They are set to price at 100 basis points and 110 basis points over US Treasuries respectively.

The kingdom’s funding needs this year are estimated to be 139 billion riyals ($37 billion), the National Debt Management Center said in a statement late Sunday. Just over 100 billion riyals will cover the budget deficit, while the rest will be used to repay maturing debt, the NDMC said.

As well as bonds, the Saudi government is likely to issue loans. The $2.5 billion three-year revolving credit facility announced last week was raised from three banks. They were Abu Dhabi Islamic Bank, Credit Agricole SA and Dubai Islamic Bank, according to data compiled by Bloomberg.

The kingdom sold $17 billion of international bonds in 2024, second only to Romania among emerging markets, according to data compiled by Bloomberg. All the Saudi bonds were denominated in dollars. This year, the finance ministry’s said it may look at other currencies to diversify its funding base.

Saudi Arabia’s overall bond funding last year, including deals done by state-controlled entities such as the sovereign wealth fund, amounted to around $50 billion.

The government expects to post a fiscal deficit of about 2.8% of GDP this year.

Despite the high spending needs, the Saudi government has a strong balance sheet and plenty of room to take on more debt to support its investments, Goldman Sachs has said in recent months. In November, Moody’s Investors Service upgraded the country’s credit rating from to Aa3 from A1, on par with France and the UK, citing a positive outlook for the non-oil sector.

#SaudiArabia's non-oil private sector keeps growing solidly in December, PMI shows | Reuters

Saudi Arabia's non-oil private sector keeps growing solidly in December, PMI shows | Reuters

Strong demand drove growth in Saudi Arabia's non-oil business sector in December, albeit at a slightly slower pace than the previous month, a survey showed on Sunday.

The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) fell to 58.4 in December from a 17-month high of 59.0 in November. Despite the dip, headline PMI remained well above the 50.0 mark denoting growth.

New orders continued to rise, marking the fifth consecutive month of acceleration, driven by strong domestic demand and a boost in exports. The subindex surged to 65.5 in December from 63.4 the previous month, and the pace of growth was the fastest recorded in 2024.

"Saudi Arabia's non-oil private sector ended 2024 on a high note, reflecting the successful strides made under Vision 2030," said Naif Al-Ghaith, Chief Economist at Riyad Bank, referring to the country's ambitious programme to diversify its economy.

Cost pressures remained a concern, with input prices rising sharply due to strong demand for materials. However, wage inflation eased, helping to mitigate overall cost burdens.

Business expectations improved to a nine-month high in December, with firms optimistic about continued growth in 2025.

The non-oil GDP is expected to grow by more than 4% in 2024 and 2025, driven by substantial improvements in business conditions, Al-Ghaith added.

The Saudi government plans to step up strategic spending on huge projects to meet its Vision 2030 goals, especially the elements with tight deadlines. Last month, the kingdom was officially announced as host nation for the 2034 soccer World Cup.

#Saudi bourse falls on profit taking; Egypt extends gains | Reuters

Saudi bourse falls on profit taking; Egypt extends gains | Reuters

                       

Saudi Arabia's stock market closed lower on Sunday, ending five sessions of gains as investors booked profits, while the Egyptian index extended gains for a second session.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.3%, weighed down by a 1.2% fall in Al Rajhi Bank (1120.SE), opens new tab and a 1% decrease in ACWA Power Company (2082.SE), opens new tab.

In Qatar, the index (.QSI), opens new tab fell 0.9%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab losing 1.3% and Qatar Islamic Bank (QISB.QA), opens new tab retreating 2.2%.

The Qatari market is awaiting clear directional catalysts, said Samer Hasn, senior market analyst at XS.com.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, rising for a third consecutive day, led by an 8.4% jump in El Sewedy Electric Co (SWDY.CA), opens new tab.

#UAE stocks subdued as investors lock in profits | Reuters

UAE stocks subdued as investors lock in profits | Reuters

Stock markets in the United Arab Emirates were subdued on Friday, with Dubai's index retreating due to profit-taking and a late-week sell-off, while Abu Dhabi's index stabilized after the previous session's decline.

Dubai's main share index (.DFMGI), opens new tab slipped 0.5% for the second straight day, dragged down by declines in financials and property stocks. Emirates NBD Bank (ENBD.DU), opens new tab led the losses, falling 2.4%, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab shed 0.7%.

Dubai's stock market retreated as investors locked in profits, following a recent surge in gains and momentum. The majority of sectors declined, according to Samer Hasn, Senior Market Analyst at XS.com.

Abu Dhabi's main share index (.FTFADGI), opens new tab - which ended 2024 in the red - closed flat, as gains in consumer and material stocks were offset by declines in financials.

ADNOC Drilling (ADNOCDRILL.AD), opens new tab and Lulu Retail Holdings (LULU.AD), opens new tab rose 1.9% and 2.6% respectively. The retailer opened two new express stores in the Kingdom last week, bringing its total store count to 59.

Meanwhile, the country's largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, fell 0.7% while conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab dropped over 1%.

Abu Dhabi stocks traded sideways on Friday, with major heavyweights posting mixed results. However, a rebound in oil prices may lift the market in upcoming sessions, according to Samer.

#AbuDhabi's Mubadala overtakes #SaudiArabia's PIF as world's top wealth fund spender | Reuters

Abu Dhabi's Mubadala overtakes Saudi Arabia's PIF as world's top wealth fund spender | Reuters

Abu Dhabi's Mubadala Investment Company accounted for about 20% of the almost $136.1 billion spent by sovereign wealth funds worldwide last year, overtaking Saudi Arabia's wealth fund amid a surge in spending from Gulf countries.

Mubadala and its subsidiaries deployed $29.2 billion in 2024, up from $17.5 billion invested in 2023, based on a preliminary annual report from industry specialist Global SWF, which tracks the world's sovereign investment funds.

Saudi Arabia's Public Investment Fund lost its ranking as the world's most active sovereign wealth fund after it cut its investment spend by 37% to $19.9 billion in 2024 from $31.6 billion the previous year, according to the report.

PIF Governor Yasir Al-Rumayyan said in October the sovereign wealth fund was more focused on the domestic economy and aiming to reduce the fund's international investments.

Still, the Gulf's sovereign wealth funds controlled by governments of Abu Dhabi, Qatar and Saudi Arabia "invested a record" $82 billion in 2024, a rise of more than 10% from 2023, the report said.

Other groups such as Canada’s Maple 8, the Singaporean funds or the Australian superannuation funds were more active than in 2023, but remained below their peaks in 2021-2022, the report added.

Overall sovereign wealth funds' assets under management rose 6.1% this year to $13 trillion, a historical peak, and public pension funds rose 6% to reach $25 trillion. Norway has the world's biggest sovereign wealth fund.

Sovereign investments into digitisation, which include data centres, digital infrastructure, artificial intelligence and space investing, reached $27.7 billion in 2024.

Abu Dhabi, a wealthy oil producer and longtime security partner of the U.S., is in a race to become an AI leader amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States.

The push is led by the government-backed G42 and MGX, a firm in which Mubadala is a partner. Emirati officials believe the Gulf state's bet on artificial intelligence will strengthen its international clout by making it a key economic actor long after demand for oil has dried up.

Real estate and private equity investment volumes by sovereign wealth funds were unchanged, while infrastructure and credit continued to rise, the report said.

Deal activity by state funds rose 5% in 2024 to $216 billion. Average deal size rose to a six-year high of $370 million.

#SaudiArabia Stocks - Bloomberg

European, Middle Eastern & African Stocks - Bloomberg