Saudi Stock Market Reforms Seen Boosting Flows to Smaller Names - Bloomberg
Saudi medium-size companies are likely to attract flows alongside banks on the back of the kingdom’s plan to loosen foreign ownership limits for public companies.
Saudi Arabia’s Tadawul stock index surged 5.1% on Wednesday after a board member of the Capital Market Authority told Bloomberg News that majority foreign ownership could come into effect by the end of the year.
The proposal would provide a boost to liquidity, an issue that has held back some investors, said Frances Ames, director and head of research at Ajeej Capital. That would see increased foreign inflows extend beyond the market’s biggest names.
“Active managers globally are still pretty underweight Saudi Arabia,” Ames said in an interview with Bloomberg Television. The news could attract investors to some smaller and mid-cap companies, “which we view as very high quality businesses, where sometimes the only thing lacking is market liquidity,” she said.
A decision by the CMA to allow majority foreign ownership isn’t a foregone conclusion and it’s unclear how big a stake foreigners could eventually be able to own in Saudi equities if approval goes ahead. The Tadawul fluctuated on Thursday, slipping 1% after initially extending Wednesday’s gains.
Ames said investors are giving greater focus to Saudi Arabia’s non-oil sectors, as the economy diversifies. This evolution in the market over the past five to six years could support fresh interest once the ownership rules are eased, she said.
The kingdom’s pipeline of initial public offerings, already among the busiest globally, may accelerate as companies move forward with listing plans. Positive regulatory changes can influence their timing, and some high-quality firm are preparing to come to market, Ames said.
Ames agreed that banking stocks would attract the largest slice of increased inflows, with Al Rajhi Bank standing out because of the size it already commands in global benchmark indexes.
Al Rajhi Capital estimated that $9.7 billion could flow into Saudi stocks if the foreign ownership limit was raised to 100%. Bank shares would be the key beneficiary, the firm said in a note.
JPMorgan Chase & Co. sees a potential capital influx of $10.6 billion should the CMA lift the ownership limit to 100%. EFG Hermes also anticipates about $10 billion of inflows. Both firms said they expect Al Rajhi Bank to be the biggest beneficiary of the possible change.
Junaid Ansari, director of investment strategy at Kamco Investments Co., is another who sees broad market benefits should the reforms proceed.
The move “would drive a broader relook at Saudi stocks that have traded at depressed levels due to the decline in crude oil prices as well as due to regional geopolitical issues,” he said. “The removal of the limits would surely help to increase the overall trading activity on the exchange from both active and passive investors.”
Thursday, 25 September 2025
#AbuDhabi #UAE Returns to Debt Market With Dollar Bond Sale - Bloomberg
Abu Dhabi Returns to Debt Market With Dollar Bond Sale - Bloomberg
Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year.
The oil-rich emirate, one of seven comprising the United Arab Emirates, plans a 3-year note maturing in 2028 and a 10-year security due in 2035. The final terms, including the size and yields, may be announced later on Thursday.
Abu Dhabi, which issued $5 billion of Eurobonds last year, is marketing the 3-year notes at an initial price guidance of around 40 basis points over US Treasuries, while the 10-year bonds are being offered at about 55 basis points over the benchmark, according to a person familiar with the matter who asked not to be identified.
The deal comes after the UAE and other Gulf countries lowered interest rates last week in lockstep with the Federal Reserve, which cut rates for the first time this year.
Abu Dhabi maintains a low ratio of debt to Gross Domestic Product at 17.4% at the end of 2024, well below the peer median of 48.8%, according to Fitch Ratings.
Borrowing by Government Related Entities though is set to increase to finance the country’s massive transformation projects as it seeks to boost its non-oil economy, Fitch said in a report published in June.
The offering is being coordinated by six joint global coordinators: Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Morgan Stanley, and Standard Chartered Bank.
Abu Dhabi carries strong investment-grade ratings of Aa2 from Moody’s and AA from both S&P and Fitch, all with stable outlooks.
Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year.
The oil-rich emirate, one of seven comprising the United Arab Emirates, plans a 3-year note maturing in 2028 and a 10-year security due in 2035. The final terms, including the size and yields, may be announced later on Thursday.
Abu Dhabi, which issued $5 billion of Eurobonds last year, is marketing the 3-year notes at an initial price guidance of around 40 basis points over US Treasuries, while the 10-year bonds are being offered at about 55 basis points over the benchmark, according to a person familiar with the matter who asked not to be identified.
The deal comes after the UAE and other Gulf countries lowered interest rates last week in lockstep with the Federal Reserve, which cut rates for the first time this year.
Abu Dhabi maintains a low ratio of debt to Gross Domestic Product at 17.4% at the end of 2024, well below the peer median of 48.8%, according to Fitch Ratings.
Borrowing by Government Related Entities though is set to increase to finance the country’s massive transformation projects as it seeks to boost its non-oil economy, Fitch said in a report published in June.
The offering is being coordinated by six joint global coordinators: Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Morgan Stanley, and Standard Chartered Bank.
Abu Dhabi carries strong investment-grade ratings of Aa2 from Moody’s and AA from both S&P and Fitch, all with stable outlooks.
#SaudiArabia Aims to Grow Debt Market to Fund Giga Projects - Bloomberg
Saudi Arabia Aims to Grow Debt Market to Fund Giga Projects - Bloomberg
Saudi regulators are planning a further expansion of the local debt markets as the kingdom seeks more capital to finance massive construction projects.
There’s been about $228 billion in issuance to date in the history of the Saudi market, representing around 18% of gross domestic product, according to Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the Capital Market Authority.
The aim is to boost that to a cumulative 28% by 2030 by encouraging more borrowing, introducing new instruments and increasing foreign participation, he said in an interview this month in London.
“We want to make the Saudi debt market the cornerstone for financing for the giga projects,” Bin Hassan said.
Saudi Arabia has become one of the world’s top construction markets, with projects worth about $1.3 trillion launched since 2016 as part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to attract investment and diversify the economy away from oil.
The portfolio includes everything from Maldivian-style resorts and housing on the Red Sea to a ski slope in the desert and residential communities in Riyadh.
But as the scale of work has picked up, so too has the need for heavier investment and spending — something that’s become more challenging as the kingdom grapples with oil revenues subdued by lower prices.
That’s made the need for external financing and foreign investment more acute. Regulators are already looking to ease limits on foreign ownership of stocks, in part to pave the way for a fresh injection of money from abroad.
The government also rolled out a new investment law earlier this year aimed to making it easier to do business in the kingdom.
“We want to move away from the traditional method of financing, which is borrowing from banks, to have debt instruments to fill that gap and to fill the financing needs of the kingdom,” Bin Hassan said.
The kingdom’s debt-capital market is still largely made up of sovereign local currency bond issuance.
Regulators introduced over-the-counter settlement in May to bring the market more in line with global standards and has been working to simplify the process of issuing debt in recent years to encourage more companies to tap public markets. It has also said it’s considering easing tax rules.
Saudi Arabia was placed on the watch list for possible inclusion into JPMorgan Chase & Co.’s benchmark emerging-market bond index after what the bank said were “proactive market reforms” in the past two years.
An inclusion of Saudi Arabia may result in a weight of around 2% in the JPMorgan EM Bond Index, translating into a few billion dollars of initial inflows, said Basel Al-Waqayan, a fixed-income strategist at Bloomberg Intelligence.
Saudi regulators are planning a further expansion of the local debt markets as the kingdom seeks more capital to finance massive construction projects.
There’s been about $228 billion in issuance to date in the history of the Saudi market, representing around 18% of gross domestic product, according to Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the Capital Market Authority.
The aim is to boost that to a cumulative 28% by 2030 by encouraging more borrowing, introducing new instruments and increasing foreign participation, he said in an interview this month in London.
“We want to make the Saudi debt market the cornerstone for financing for the giga projects,” Bin Hassan said.
Saudi Arabia has become one of the world’s top construction markets, with projects worth about $1.3 trillion launched since 2016 as part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to attract investment and diversify the economy away from oil.
The portfolio includes everything from Maldivian-style resorts and housing on the Red Sea to a ski slope in the desert and residential communities in Riyadh.
But as the scale of work has picked up, so too has the need for heavier investment and spending — something that’s become more challenging as the kingdom grapples with oil revenues subdued by lower prices.
That’s made the need for external financing and foreign investment more acute. Regulators are already looking to ease limits on foreign ownership of stocks, in part to pave the way for a fresh injection of money from abroad.
The government also rolled out a new investment law earlier this year aimed to making it easier to do business in the kingdom.
“We want to move away from the traditional method of financing, which is borrowing from banks, to have debt instruments to fill that gap and to fill the financing needs of the kingdom,” Bin Hassan said.
The kingdom’s debt-capital market is still largely made up of sovereign local currency bond issuance.
Regulators introduced over-the-counter settlement in May to bring the market more in line with global standards and has been working to simplify the process of issuing debt in recent years to encourage more companies to tap public markets. It has also said it’s considering easing tax rules.
Saudi Arabia was placed on the watch list for possible inclusion into JPMorgan Chase & Co.’s benchmark emerging-market bond index after what the bank said were “proactive market reforms” in the past two years.
An inclusion of Saudi Arabia may result in a weight of around 2% in the JPMorgan EM Bond Index, translating into a few billion dollars of initial inflows, said Basel Al-Waqayan, a fixed-income strategist at Bloomberg Intelligence.
#Qatar's wealth fund teams up with Blue Owl for $3 billion data centre push | Reuters
Qatar's wealth fund teams up with Blue Owl for $3 billion data centre push | Reuters
Qatar Investment Authority (QIA) and alternative asset manager Blue Owl Capital (OWL.N), opens new tab have signed a partnership aimed at launching a $3 billion global digital infrastructure platform focused on data centres, they said on Thursday.
The platform is intended to "accelerate global compute available to leading hyperscalers amid surging cloud and AI transformation," the two firms said in a joint statement.
The Gulf country's $500 billion sovereign wealth fund has been ramping up investments in the booming AI sector, as demand for data storage and computational requirements rise globally.
QIA emerged as one of the latest backers of Anthropic earlier this month, joining the artificial intelligence firm's record-breaking 13 billion funding round that vaulted its valuation to $183 billion.
The move is also part of wider efforts by Gulf countries to become global players in artificial intelligence, turning into hubs for the growing industry outside of the United States.
Qatar Investment Authority (QIA) and alternative asset manager Blue Owl Capital (OWL.N), opens new tab have signed a partnership aimed at launching a $3 billion global digital infrastructure platform focused on data centres, they said on Thursday.
The platform is intended to "accelerate global compute available to leading hyperscalers amid surging cloud and AI transformation," the two firms said in a joint statement.
The Gulf country's $500 billion sovereign wealth fund has been ramping up investments in the booming AI sector, as demand for data storage and computational requirements rise globally.
QIA emerged as one of the latest backers of Anthropic earlier this month, joining the artificial intelligence firm's record-breaking 13 billion funding round that vaulted its valuation to $183 billion.
The move is also part of wider efforts by Gulf countries to become global players in artificial intelligence, turning into hubs for the growing industry outside of the United States.
#Saudi PIF-owned AviLease weighs debut bond, sources say | Reuters
Saudi PIF-owned AviLease weighs debut bond, sources say | Reuters
AviLease, a jet-leasing firm backed by Saudi Arabia's almost $1 trillion Public Investment Fund (PIF), has been holding talks with banks to prepare an inaugural bond sale, two people with knowledge of the plan told Reuters.
The company has discussed a dollar-denominated debut with JPMorgan and Citigroup, said the people, who declined to be identified because the information is private.
AviLease could raise at least $500 million from its debut bond, as part of a $2 billion programme, according to one of the sources. The initial bond could be placed on the market by the end of the year, the person said.
AviLease did not respond to multiple requests for comment, while JPMorgan and Citi declined to comment.
AviLease secured investment-grade ratings from Moody's and Fitch in April, which chairman Fahad AlSaif said would help the firm tap global capital markets to place itself at the forefront of aircraft leasing in line with Saudi Arabia's Vision 2030.
The plan includes Saudi Arabia expanding aviation to support tourism and reduce reliance on oil and involves the launch of a new carrier, Riyadh Air.
In the first half of 2025, Saudi issuers accounted for 18.9% of the $250 billion in emerging-market dollar debt, Fitch said last month, followed by the government raising $5.5 billion via sukuk this month and PIF selling a heavily subscribed $2 billion 10-year bond.
Established in 2022 as part of PIF's push to build a domestic aviation leasing giant, AviLease agreed in 2023 to buy Standard Chartered's aviation finance arm for $3.6 billion.
In May 2025, AviLease made its first direct Boeing order for 20 737-8 MAX jets with options for 10 more, adding to a portfolio of 200 aircraft leased to 48 airlines worldwide as of March.
PIF and other state-linked firms are increasingly turning to dollar and euro bond markets to fill funding gaps and sustain Saudi Arabia's multibillion-dollar megaprojects.
AviLease, a jet-leasing firm backed by Saudi Arabia's almost $1 trillion Public Investment Fund (PIF), has been holding talks with banks to prepare an inaugural bond sale, two people with knowledge of the plan told Reuters.
The company has discussed a dollar-denominated debut with JPMorgan and Citigroup, said the people, who declined to be identified because the information is private.
AviLease could raise at least $500 million from its debut bond, as part of a $2 billion programme, according to one of the sources. The initial bond could be placed on the market by the end of the year, the person said.
AviLease did not respond to multiple requests for comment, while JPMorgan and Citi declined to comment.
AviLease secured investment-grade ratings from Moody's and Fitch in April, which chairman Fahad AlSaif said would help the firm tap global capital markets to place itself at the forefront of aircraft leasing in line with Saudi Arabia's Vision 2030.
The plan includes Saudi Arabia expanding aviation to support tourism and reduce reliance on oil and involves the launch of a new carrier, Riyadh Air.
In the first half of 2025, Saudi issuers accounted for 18.9% of the $250 billion in emerging-market dollar debt, Fitch said last month, followed by the government raising $5.5 billion via sukuk this month and PIF selling a heavily subscribed $2 billion 10-year bond.
Established in 2022 as part of PIF's push to build a domestic aviation leasing giant, AviLease agreed in 2023 to buy Standard Chartered's aviation finance arm for $3.6 billion.
In May 2025, AviLease made its first direct Boeing order for 20 737-8 MAX jets with options for 10 more, adding to a portfolio of 200 aircraft leased to 48 airlines worldwide as of March.
PIF and other state-linked firms are increasingly turning to dollar and euro bond markets to fill funding gaps and sustain Saudi Arabia's multibillion-dollar megaprojects.
Mideast Stocks: #Saudi stocks dip on profit-taking; #UAE and #Qatar fall amid broad weakness
Mideast Stocks: Saudi stocks dip on profit-taking; UAE and Qatar fall amid broad weakness
The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day's strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness. Saudi's benchmark index slipped 1%, retreating from its largest single-day gain in over five years recorded on Wednesday.
However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks. The Saudi markets regulator is considering lifting the current 49% cap on foreign ownership of listed companies, "a move that could unlock over $10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Shares of Saudi Aramco declined nearly 3%. Aramco's talks to acquire a minority stake in Spanish energy firm Repsol's renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters. Index heavyweights Saudi Telecom and SABIC fell 4.2% and 4.1%, respectively.
However, the market's outlook appears optimistic, driven by robust momentum in the non-oil private sector, though oil price volatility continues to weigh on sentiment, according to Milad Azar, Market analyst at XTB MENA.
Dubai's main share index erased early gains to close down 1% for the third straight session. Emaar Properties fell 1.5%, extending its losing streak, while banking stocks like Dubai Islamic Bank and Emirates NBD Bank dropped 1.6% and 1.2%, respectively.
Abu Dhabi's index also surrendered early advances, ending the session 0.3% lower, weighed down by a nearly 1% decline in Aldar Properties. Shares of Space42 fell 1.6% after announcing a partnership with Dynamic Map, a unit of Japan's Dynamic Map Platform, to supply HD Map Data for General Motors' Super Cruise in the UAE.
Abu Dhabi National Oil Company's (ADNOC) international investment arm, XRG, announced the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project, marking its first U.S. gas investment. Additionally, ADNOC signed a 20-year LNG offtake deal for 1.9 million tonnes per annum from Rio Grande LNG Train 4.
Qatar's stock index dropped 1.1%, marking five straight sessions of declines and wrapping up the week lower, dragged down by banking shares. Qatar National Bank, the region's largest lender, dropped 3%, building on two days of losses, while Qatar Islamic Bank lost 1.3%.
Separately, Qatar Investment Authority (QIA) and US-based Blue Owl Capital have partnered to launch a $3 billion global digital infrastructure platform focused on data centers, as QIA deepens investments in AI-related sectors amid rising demand for data storage and computing power.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, reversing gains from the previous session. Despite the dip, the index ended a positive week, hitting last month's peak level. Consumer staples led the decline, with Eastern Company sliding over 3%.
The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day's strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness. Saudi's benchmark index slipped 1%, retreating from its largest single-day gain in over five years recorded on Wednesday.
However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks. The Saudi markets regulator is considering lifting the current 49% cap on foreign ownership of listed companies, "a move that could unlock over $10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Shares of Saudi Aramco declined nearly 3%. Aramco's talks to acquire a minority stake in Spanish energy firm Repsol's renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters. Index heavyweights Saudi Telecom and SABIC fell 4.2% and 4.1%, respectively.
However, the market's outlook appears optimistic, driven by robust momentum in the non-oil private sector, though oil price volatility continues to weigh on sentiment, according to Milad Azar, Market analyst at XTB MENA.
Dubai's main share index erased early gains to close down 1% for the third straight session. Emaar Properties fell 1.5%, extending its losing streak, while banking stocks like Dubai Islamic Bank and Emirates NBD Bank dropped 1.6% and 1.2%, respectively.
Abu Dhabi's index also surrendered early advances, ending the session 0.3% lower, weighed down by a nearly 1% decline in Aldar Properties. Shares of Space42 fell 1.6% after announcing a partnership with Dynamic Map, a unit of Japan's Dynamic Map Platform, to supply HD Map Data for General Motors' Super Cruise in the UAE.
Abu Dhabi National Oil Company's (ADNOC) international investment arm, XRG, announced the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project, marking its first U.S. gas investment. Additionally, ADNOC signed a 20-year LNG offtake deal for 1.9 million tonnes per annum from Rio Grande LNG Train 4.
Qatar's stock index dropped 1.1%, marking five straight sessions of declines and wrapping up the week lower, dragged down by banking shares. Qatar National Bank, the region's largest lender, dropped 3%, building on two days of losses, while Qatar Islamic Bank lost 1.3%.
Separately, Qatar Investment Authority (QIA) and US-based Blue Owl Capital have partnered to launch a $3 billion global digital infrastructure platform focused on data centers, as QIA deepens investments in AI-related sectors amid rising demand for data storage and computing power.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, reversing gains from the previous session. Despite the dip, the index ended a positive week, hitting last month's peak level. Consumer staples led the decline, with Eastern Company sliding over 3%.
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