#Saudi Arabian bank SNB reports 17% jump in second-quarter profit | Reuters

Saudi Arabian bank SNB reports 17% jump in second-quarter profit | Reuters

Saudi National Bank (SNB) (1180.SE), opens new tab reported a 17.3% jump in second-quarter net profit on Monday, driven by higher income and lower net impairment charges.

SNB's shares jumped 1.8% at market open after the results, and have risen just over 10% since January.

The kingdom's biggest lender by assets said it made a net profit of 6.1 billion riyals ($1.63 billion) in the quarter ended June 30, higher than the 5.6 billion riyals analysts were expecting, and compared with 5.2 billion riyals in the year-earlier period.

SNB said the results were driven by higher net special commission income and operating income, in addition to lower net impairment charges for expected credit losses.

SNB said pre-provision credit was driven by strong credit quality and higher recoveries. Citi had expected SNB to report provisions.

"While SNB’s results were largely ahead vs our (and Street) expectations, we see this as poor quality beat – driven largely by provision writebacks," Citi said in a note to clients.

On a pre-provision basis, results were slightly below Citi's estimates, Citi said in the note, adding that the second-quarter results also showed weak net interest margins and muted loan volumes.

SNB will pay a first-half dividend after zakat, an Islamic tax, worth 1 riyal per share to 6 billion eligible shares, according to a separate bourse disclosure that followed the results.

Indian jeweller Titan to buy large stake in #Dubai's Damas | Reuters

Indian jeweller Titan to buy large stake in Dubai's Damas | Reuters

Titan Company (TITN.NS), opens new tab will buy a 67% stake in Dubai-based luxury brand Damas from Qatar's Mannai Corporation (MCCS.QA), opens new tab at an enterprise value of 1.04 billion dirham ($283.2 million), potentially making it one of the largest Indian jewellers in the Middle East.

The Tata Group company expects to complete the deal by January 31, 2026 and will have the right to acquire the remaining 33% stake in Damas after December 31, 2029, it said in an exchange filing on Monday.

Titan has had a presence in the UAE since October 2020 through its Tanishq jewellery stores.

After the deal, Titan, which has about seven stores in the United Arab Emirates, will gain access to Damas' 146 stores across the six Gulf Cooperation Council (GCC) countries – UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain.

The Middle East is home to a large Indian diaspora, for whom gold is a traditional investment choice.

"For a large retailer looking to get a foothold in the (GCC) market, we view this (Damas) as an attractive asset given the strong brand presence and store network," analysts at Investec wrote in a July 7 note following media reports about a possible sale.

Other Indian jewellers in the region include the likes of Kalyan Jewellers (KALN.NS), opens new tab, Joyalukkas and Malabar Gold & Diamonds.

Damas, which was previously listed on Nasdaq Dubai, was taken over by Mannai and Egyptian investment bank EFG Hermes in 2012 for $445 million. EFG Hermes sold its entire 19% stake in the jeweller in 2014 to Mannai.

Mannai will use the proceeds to support further expansion of its core trade and IT services businesses along with reducing the group debt, Group Chief Executive Officer Alekh Grewal said.

Standard Chartered was Titan's advisor for the deal.

#SaudiArabia, #UAE Market Fortunes Diverge; Neom’s ‘Line’ Is Under Review - Bloomberg

Saudi Arabia, UAE Market Fortunes Diverge; Neom’s ‘Line’ Is Under Review - Bloomberg

While global investors weigh tariffs and rate decisions, the Middle East’s biggest equity story is the widening gap between its two largest markets. Saudi Arabia’s main index is down over 8% year-to-date, closely tracking Brent crude’s slide. Meanwhile, stocks in the United Arab Emirates are rallying: Dubai’s benchmark has jumped about 18%, and Abu Dhabi’s is up nearly 10%.

The UAE’s momentum is fueled by strong economic momentum and a booming real estate sector. Dubai apartment prices have soared 122% in five years, according to Deutsche Bank, with rents up nearly 50%. That strength is feeding into the initial public offering pipeline, with a wave of property-linked companies, including contractors and online real estate platforms, preparing to list.

Investor confidence has also rebounded after two solid listings this year — a residential REIT and a technology firm — helping to shake off jitters from a string of underwhelming debuts in late 2024.

“There is a significant amount of demand locally these days so the Middle East is really becoming an option for companies to list,” Miguel Azevedo, vice chairman for Citigroup Inc.'s investment banking business in the Middle East and Africa, said in an interview with Bloomberg Television. “We have the right level of demand, the right level of pricing, the transactions are doing very well in the aftermarket.”

Over in Saudi Arabia, the region’s busiest IPO venue with over $3 billion raised this year, sentiment has cooled. Recent listings like Flynas and Specialized Medical have underperformed, adding to investor caution amid oil-driven fiscal headwinds.

That’s prompted a shift toward a more “rational” tone in a market known for lofty valuations, said Rami Sidani, head of frontier investments at Schroder Investment Management. “There’s no longer that assumption that every IPO is going to pop on day one. That’s part of the market maturing,” he said.

To be sure, deal flow in the kingdom remains robust, with a mix of state-backed and private firms preparing listings.

“I think it will be a busy second half,” Citigroup’s Azevedo said, noting his firm is working on a “very big” transaction in Saudi Arabia. “No one has to buy Middle East but everyone wants to buy Middle East.”

Nikita Turkin, Barclays’ head of equity capital markets for Central and Eastern Europe, Middle East and Africa, expects a healthy pipeline across the Gulf over the next 12–18 months, especially as geopolitical tensions, such as the Israel-Iran conflict, appear to be easing.

Even quieter markets are stirring, with Kuwait set to see a rare convenience-store IPO. The country’s main index is up around 19% this year, as investors cheer moves by the ruler to advance long-stalled economic reforms.

Wealth Fund Mubadala Backs #Dubai-Based Dining Payments Platform - Bloomberg

Wealth Fund Mubadala Backs Dubai-Based Dining Payments Platform - Bloomberg

A Dubai-based restaurant payments platform has raised $30 million from investors including wealth fund Mubadala Investment Co., as it looks to accelerate its global expansion.

Qlub secured the funding in a round co-led by investment firm Shorooq and Berlin-based Cherry Ventures, the company said in a statement. Other participants included United Arab Emirates’ telecom group e& and China-based Legend Capital.

The startup did not disclose its valuation. It has now raised $72 million to date, including $42 million from earlier rounds.

Founded in 2021 by Eyad Alkassar and Mahmoud Fouz, Qlub offers contactless payment solutions that allow restaurant diners to browse menus, place orders and pay directly from their smartphones.

It operates across the Middle East — including the UAE, Saudi Arabia, Qatar and Kuwait — and has expanded globally to markets such as Singapore, Hong Kong and Brazil. Qlub processes a few billion dollars in transactions annually, according to the company. Clients include international hospitality brands such as Paul Cafe, Wagamama, Sushi Samba and La Petite Maison.

Qlub said it will use the fresh capital to enter new markets, strengthen its presence in existing ones and enhance its platform with advanced analytics.

The round comes as startups in the Middle East nearly doubled their fundraising in the first half of the year, defying a broader slowdown in emerging markets. Companies in the region secured about $1.35 billion in venture capital funding from January through June, led by Saudi Arabia and the UAE, according to data platform Magnitt.

Gulf markets mixed as strong earnings offset US tariff concerns | Reuters

Gulf markets mixed as strong earnings offset US tariff concerns | Reuters

Stock markets in the Gulf ended mixed on Monday, as investors weighed positive corporate earnings against concerns over U.S. trade policy changes.

The European Union is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington fade, according to EU diplomats.

Investors had been hoping for some progress in trade talks ahead of U.S. President Donald Trump's August 1 tariff deadline; Commerce Secretary Howard Lutnick is still confident a deal could be reached with the EU.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, ending a nine-day losing streak, led by a 1.6% gain in sharia-compliant lender Al Rajhi Bank (1120.SE), opens new tab and a 1.2% increase in Saudi National Bank (1180.SE), opens new tab, as the duo reported a rise in quarterly net profit.

But International Petrochemical Company (2310.SE), opens new tab declined 5.7%, after the firm turned to losses in the second quarter.

If upcoming earnings reports are broadly positive, the market may rebound, Osama Al Saifi, managing director for MENA at Traze, said.

Dubai's main share index (.DFMGI), opens new tab dropped 0.8%, easing from a multi-year high, hit by a 3.7% slide in top lender Emirates NBD (ENBD.DU), opens new tab.

Profit-taking weighed on the market, with noticeable pressure on the financial sector, Saifi said.

"Investors could secure their profits after a long period of strong momentum ahead of the Q2 earnings releases."

Air Arabia (AIRA.DU), opens new tab leapt 4.8% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030.

In Abu Dhabi, the index (.FTFADGI), opens new tab fell 0.2%.

Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain.

The Qatari index (.QSI), opens new tab closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 1.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab edged 0.2% higher, hitting a new record high.