Saudi Arabia to Sell More Bonds as Lower Oil Hits Finances - Bloomberg
Saudi Arabia is set to sell more international bonds, as it looks to cover a budget deficit caused by lower oil prices and high spending on the government’s economic-diversification drive.
The kingdom is offering dollar Sukuk, or Islamic debt, with maturities of five and 10 years, according to a person familiar with the matter. Initial price talk is around 95 basis points over US Treasuries for the shorter tranche, and 105 basis points for the longer one. The final details, including the size of the bonds and the price, may be decided later on Tuesday.
Investors had placed around $15 billion of orders by midday in London, according to the person.
Saudi Arabia has ramped up borrowing in the past two to three years as the government and sovereign wealth fund spend hundreds of billions of dollars on everything from a new city to electric vehicle factories and tourism resorts. Those are all part of Crown Prince Mohammed bin Salman’s Vision 2030 plan to develop non-oil businesses.
Depressed oil prices, with Brent down 8% this year to around $69 a barrel, have also put pressure on the kingdom’s finances.
Saudi Arabia has already sold around $14.5 billion of sovereign debt in dollars and euros this year, the most among emerging markets after Mexico, according to data compiled by Bloomberg. While the kingdom’s ratio of debt to gross domestic product is low by global standards at under 30%, the International Monetary Fund sees it rising to 41% by 2030.
The IMF forecasts Saudi Arabia’s fiscal deficit increasing to 4% this year, a level the Washington-based lender says is “quite appropriate” given the country’s high foreign reserves. The Saudi government’s own projection is for a shortfall of 2.3%.
There are some early signs the government is reducing spending. In the second quarter, government expenditure was down 9% from the same period in 2024.
Citigroup Inc., HSBC Holdings Plc, JPMorgan Chase & Co., and Standard Chartered Plc are the main banks arranging Saudi Arabia’s latest bond deal.
Tuesday, 2 September 2025
Mubadala-Backed Corient Buys UK Wealth Firms Stonehage, Stanhope - Bloomberg
Mubadala-Backed Corient Buys UK Wealth Firms Stonehage, Stanhope - Bloomberg
US wealth manager Corient agreed to acquire Stonehage Fleming and Stanhope Capital, allowing the Mubadala-backed firm to almost double assets under management.
The combination creates a $430 billion independent wealth manager with the addition of $214 billion assets from the two firms, according to a statement on Tuesday. Financial terms weren’t disclosed and the deal is expected to close in the first half of 2026.
UK-based Stonehage Fleming is a multifamily office managing more than $175 billion in assets, including for the heirs of James Bond-author Ian Fleming. Minority owner Caledonia Investments Plc said in a separate statement it expects to receive net cash proceeds of about £288 million ($385 million) from the sale of its stake. London-based Stanhope Capital manages nearly $40 billion in assets.
The deal is the latest sign of consolidation among wealth managers, many of which are facing increasing costs and regulation as well as competition from larger players such as Morgan Stanley and UBS Group AG.
Corient’s holding company, Canadian mutual fund manager CI Financial Corp., was acquired last year by Mubadala Capital, the alternative asset manager owned by the Abu Dhabi-based sovereign wealth fund. Miami-based Corient is owned and operated by its 260 partners and Mubadala.
As part of the deal, Stonehage Fleming executive chairman Giuseppe Ciucci will become chairman and Stanhope founder Daniel Pinto will be CEO of Corient’s international business. Ciucci, Pinto and other members of their executive teams will become “significant equity holders” in Corient, according to the statement.
Jefferies and Goldman Sachs were financial advisers to Corient on the deal. Spencer House Partners advised Stonehage Fleming, while Rothschild & Co advised Stanhope Capital.
US wealth manager Corient agreed to acquire Stonehage Fleming and Stanhope Capital, allowing the Mubadala-backed firm to almost double assets under management.
The combination creates a $430 billion independent wealth manager with the addition of $214 billion assets from the two firms, according to a statement on Tuesday. Financial terms weren’t disclosed and the deal is expected to close in the first half of 2026.
UK-based Stonehage Fleming is a multifamily office managing more than $175 billion in assets, including for the heirs of James Bond-author Ian Fleming. Minority owner Caledonia Investments Plc said in a separate statement it expects to receive net cash proceeds of about £288 million ($385 million) from the sale of its stake. London-based Stanhope Capital manages nearly $40 billion in assets.
The deal is the latest sign of consolidation among wealth managers, many of which are facing increasing costs and regulation as well as competition from larger players such as Morgan Stanley and UBS Group AG.
Corient’s holding company, Canadian mutual fund manager CI Financial Corp., was acquired last year by Mubadala Capital, the alternative asset manager owned by the Abu Dhabi-based sovereign wealth fund. Miami-based Corient is owned and operated by its 260 partners and Mubadala.
As part of the deal, Stonehage Fleming executive chairman Giuseppe Ciucci will become chairman and Stanhope founder Daniel Pinto will be CEO of Corient’s international business. Ciucci, Pinto and other members of their executive teams will become “significant equity holders” in Corient, according to the statement.
Jefferies and Goldman Sachs were financial advisers to Corient on the deal. Spencer House Partners advised Stonehage Fleming, while Rothschild & Co advised Stanhope Capital.
#SaudiArabia Starts Mortgage-Backed Security Market to Drive Liquidity - Bloomberg
Saudis Start Mortgage-Backed Security Market to Drive Liquidity - Bloomberg
Saudi Arabia has launched its first residential mortgage backed securities in a move designed to boost liquidity and encourage more bank lending to drive the kingdom’s economic transformation program.
The Saudi Real Estate Refinance Co., the state-run equivalent of Fannie Mae and Freddie Mac in the US, recently executed on its first RMBS transaction after getting a regulatory nod to package and sell the securities domestically, according to a statement. SRC didn’t offer specifics on the size or structure of the deal or detail who was involved.
An active RMBS market may encourage Saudi banks to offload mortgages to SRC, creating more breathing room for additional lending to drive economic activity.
Saudi banks may transfer as much as $48 billion in legacy mortgages to SRC by 2030, unlocking liquidity and enabling almost $23 billion of securitization for investors, according to analysis by Bloomberg Intelligence’s Edmond Christou and Basel Al Waqayan.
SRC, which is owned by the Saudi sovereign wealth fund, didn’t respond to a request for more information.
In the last year, SRC has signed agreements with asset managers BlackRock Inc. and King Street Capital Management to drive the real estate financing market, and with Saudi Arabia’s $320 billion pension fund manager Hassana Investment Co. to issue RMBS.
The kingdom has kickstarted its RMBS market as it looks to fill financing gaps and bring in cash to support de facto ruler Crown Prince Mohammed bin Salman’s diversification drive that includes everything from boosting home ownership to becoming an AI hub and building a ski resort on a remote desert mountain.
The need for local funding is becoming more pressing as the government runs widening budget deficits and banks face slower lending growth at a time when more credit and investments are needed to back some of the country’s domestic ambitions.
SRC was created in 2017, with a goal of packaging and selling local bank loans to domestic and international investors. It has signed deals with Saudi National Bank and Bank Albilad to acquire real estate portfolio assets in recent months.
“The market opportunity is substantial in our view as Saudi banks currently hold a mortgage portfolio valued at approximately $180 billion, representing 23% of total loans at the end of 2024,” S&P Global said in a report on Monday.
Saudi Arabia has launched its first residential mortgage backed securities in a move designed to boost liquidity and encourage more bank lending to drive the kingdom’s economic transformation program.
The Saudi Real Estate Refinance Co., the state-run equivalent of Fannie Mae and Freddie Mac in the US, recently executed on its first RMBS transaction after getting a regulatory nod to package and sell the securities domestically, according to a statement. SRC didn’t offer specifics on the size or structure of the deal or detail who was involved.
An active RMBS market may encourage Saudi banks to offload mortgages to SRC, creating more breathing room for additional lending to drive economic activity.
Saudi banks may transfer as much as $48 billion in legacy mortgages to SRC by 2030, unlocking liquidity and enabling almost $23 billion of securitization for investors, according to analysis by Bloomberg Intelligence’s Edmond Christou and Basel Al Waqayan.
SRC, which is owned by the Saudi sovereign wealth fund, didn’t respond to a request for more information.
In the last year, SRC has signed agreements with asset managers BlackRock Inc. and King Street Capital Management to drive the real estate financing market, and with Saudi Arabia’s $320 billion pension fund manager Hassana Investment Co. to issue RMBS.
The kingdom has kickstarted its RMBS market as it looks to fill financing gaps and bring in cash to support de facto ruler Crown Prince Mohammed bin Salman’s diversification drive that includes everything from boosting home ownership to becoming an AI hub and building a ski resort on a remote desert mountain.
The need for local funding is becoming more pressing as the government runs widening budget deficits and banks face slower lending growth at a time when more credit and investments are needed to back some of the country’s domestic ambitions.
SRC was created in 2017, with a goal of packaging and selling local bank loans to domestic and international investors. It has signed deals with Saudi National Bank and Bank Albilad to acquire real estate portfolio assets in recent months.
“The market opportunity is substantial in our view as Saudi banks currently hold a mortgage portfolio valued at approximately $180 billion, representing 23% of total loans at the end of 2024,” S&P Global said in a report on Monday.
Most Gulf markets gain ahead of US jobs data | Reuters
Most Gulf markets gain ahead of US jobs data | Reuters
Most stock markets in the Gulf ended higher on Tuesday as investors awaited U.S. labour data this week that could guide global monetary policy.
A U.S. labor market report on Friday will give a crucial read into the economy's health and test investors' confidence that interest rate cuts are coming soon, a view that has helped lift U.S. equities to record-high levels.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.
Markets widely expect the Fed to lower interest rates later this month, pricing in an 89% chance of a 25-basis-point cut.
Dubai's main share index (.DFMGI), opens new tab reversed early losses to close 0.7% higher, helped by a 1.4% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%.
The Abu Dhabi stock markets rebounded following three consecutive sessions of decline and a broader market correction after recent significant gains, said Milad Azar, market analyst at XTB MENA.
"Positive performance from leading stocks supported the broader market, while higher oil prices also helped sentiment, although the risk of lower price levels still persists."
Oil prices - a catalyst for the Gulf's financial markets - rose over 2% as expectations mounted that an escalation of the conflict between Russia and Ukraine would disrupt supply and the market speculated OPEC+ will not raise output at a meeting on Sunday.
Saudi Arabia's benchmark index (.TASI), opens new tab finished flat after six consecutive sessions of losses.
According to Azar, a rebound in oil prices is positive as oil at its current lower levels still represents a risk to the GCC economies and markets.
The Qatari index (.QSI), opens new tab edged 0.1% higher, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded flat.
Most stock markets in the Gulf ended higher on Tuesday as investors awaited U.S. labour data this week that could guide global monetary policy.
A U.S. labor market report on Friday will give a crucial read into the economy's health and test investors' confidence that interest rate cuts are coming soon, a view that has helped lift U.S. equities to record-high levels.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.
Markets widely expect the Fed to lower interest rates later this month, pricing in an 89% chance of a 25-basis-point cut.
Dubai's main share index (.DFMGI), opens new tab reversed early losses to close 0.7% higher, helped by a 1.4% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%.
The Abu Dhabi stock markets rebounded following three consecutive sessions of decline and a broader market correction after recent significant gains, said Milad Azar, market analyst at XTB MENA.
"Positive performance from leading stocks supported the broader market, while higher oil prices also helped sentiment, although the risk of lower price levels still persists."
Oil prices - a catalyst for the Gulf's financial markets - rose over 2% as expectations mounted that an escalation of the conflict between Russia and Ukraine would disrupt supply and the market speculated OPEC+ will not raise output at a meeting on Sunday.
Saudi Arabia's benchmark index (.TASI), opens new tab finished flat after six consecutive sessions of losses.
According to Azar, a rebound in oil prices is positive as oil at its current lower levels still represents a risk to the GCC economies and markets.
The Qatari index (.QSI), opens new tab edged 0.1% higher, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded flat.
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