Saudi Arabia's PIF Plans to More Than Double Japan Investments - Bloomberg
Saudi Arabia’s sovereign wealth fund is looking to increase its investments in Japan to about $27 billion by the end of 2030 as the kingdom looks to deepen ties in Asia and expand in areas from critical minerals to financial markets.
The Public Investment Fund aims to deploy more capital after investing $11.5 billion in Japan from 2019 to 2024, Governor Yasir Al Rumayyan said at the FII Priority Asia Summit in Tokyo on Monday. He highlighted spending in public and private markets and predicted recently-launched exchange traded funds between Saudi Arabia and Japan will “go further.”
“Asia is big for us. We want to have better ties, better relationships, better procurement process, access to the supply chain,” Al Rumayyan said. “Japan at some stage was one of the largest partners for Saudi Arabia and we want to get that back.”
Japan is Saudi Arabia’s third-largest trading partner at present. The sovereign wealth fund expects its investments in the country to contribute as much as $16.6 billion to Saudi Arabia’s gross domestic product, Al Rumayyan said. He also hopes to see more return investment to the kingdom in areas including travel and tourism.
Those sectors are among six areas of priority for the $1 trillion PIF under its 2026-2030 investment strategy, which is set to be unveiled early next year. The board has approved that plan and will be hammering out details over the next few days at a summit on the Red Sea in Saudi Arabia, Al Rumayyan said.
The comments suggest Japan will remain a priority for PIF global investment as the fund seeks to increase its annual deployment of capital to $70 billion after this year. It allocated nearly $57 billion across priority sectors in 2024.
Saudi Arabia has been leaning more heavily into its relationships with Asian nations in recent years as it seeks to draw more foreign partners to help advance the country’s multi-trillion dollar Vision 2030 economic transformation program.
There’s been a strong emphasis on the financial sector, with multiple ETFs launched in markets including mainland China, Hong Kong and Japan to track Saudi assets over the last two years. Asian banks have emerged as major financiers for Saudi entities. In energy, Saudi Arabia is working with Japan on developing the market for blue ammonia.
Additionally, the kingdom is developing Dragon Ball and anime theme parks at its Qiddiya mega entertainment city on the outskirts of Riyadh in partnership with Japan. The FII Tokyo conference held on Nov. 30-Dec. 1 was the second FII event ever held in Asia.
Monday, 1 December 2025
Cheap Oil Prices: Who Wins and Loses in a World With Surplus Crude? - Bloomberg
Cheap Oil Prices: Who Wins and Loses in a World With Surplus Crude? - Bloomberg
Oil prices have been falling as the market faces the prospect of a growing surplus.
This year is set to culminate in the first major glut since 2020. The International Energy Agency forecast in November that global supply will outweigh demand by 2.4 million barrels a day, and expects the gap to expand to a record 4 million barrels a day next year.
Sustained lower prices will put pressure on governments and businesses that are dependent on oil revenue, while others stand to benefit.
What’s driving the oil surplus?
Oil demand growth is faltering. The trade policies of US President Donald Trump are weighing on the outlook for the global economy, and China, the second-largest crude consumer, is struggling with a property market downturn and weak consumer spending.
On the supply side, OPEC+, the coalition of producers led by Saudi Arabia, has been unwinding past output cuts. Countries outside this group, in particular those in the Americas, are churning out more barrels, too.
Supply from Russia, the world’s third-biggest producer, remains a wild card. On the one hand, the country faces new US sanctions that threaten to disrupt its exports. But the Trump administration’s renewed effort to secure a deal to end the war in Ukraine has raised the prospect of some international sanctions being unwound, which could ease the flow of Russian barrels into the market.
Who are the winners in a world with an oversupply of oil?
- Oil-importing nations
A low-oil price environment is good for buyers, especially large net importers such as China, which has been filling up its strategic reserves, and India, which has faced US pressure to stop buying Russian crude.
India is the world’s third-biggest consumer of oil. It ramped up its purchases from Russia following the 2022 invasion of Ukraine, as Russian exporters offered big discounts to offset the loss of traditional European buyers. A drop in global prices could make it less painful for India to avoid sanctioned Russian barrels and switch to suppliers in the Middle East, whose medium and heavy crude grades are similar to Russia’s Urals export blend.
- US shale industry
The US shale industry has been the world’s engine for oil-production growth in recent years but the momentum is now slowing. Many producers need an oil price of around $65 a barrel to turn a profit and have been looking to increase their output at less than 5% annually as crude prices hover near the break-even threshold.
A global oil surplus that knocks prices down to about $50 a barrel would prompt US shale producers to idle their drilling rigs and park their frack fleets as operations become economically unviable.
Their output is holding up for now, but more than 10% of oil-focused rigs have been taken offline since the start of the year, according to data from Baker Hughes Co. The decline will likely accelerate in the coming months if oil prices stay low, which could put pressure on oilfield services companies.
Sustained lower oil prices could prompt more consolidation in the US shale patch. Mid-sized producers could scoop up struggling smaller players to add scale as some of the best drilling spots have already been tapped.
- The energy transition
Road transport is the biggest source of oil demand. Consumers are used to a certain amount of volatility in fuel prices, but a prolonged reduction could make them less inclined to switch to an electric vehicle. That said, in areas where there are high taxes on diesel and gasoline, such as Europe and California, there could be limited relief at the pump from lower oil prices.
The buildout of clean power sources is less likely to be impacted by a crude surplus. In most regions, other than places such as the Middle East, renewables are usually competing against coal and natural gas for utility-scale electricity generation rather than oil.
Oil prices have been falling as the market faces the prospect of a growing surplus.
This year is set to culminate in the first major glut since 2020. The International Energy Agency forecast in November that global supply will outweigh demand by 2.4 million barrels a day, and expects the gap to expand to a record 4 million barrels a day next year.
Sustained lower prices will put pressure on governments and businesses that are dependent on oil revenue, while others stand to benefit.
What’s driving the oil surplus?
Oil demand growth is faltering. The trade policies of US President Donald Trump are weighing on the outlook for the global economy, and China, the second-largest crude consumer, is struggling with a property market downturn and weak consumer spending.
On the supply side, OPEC+, the coalition of producers led by Saudi Arabia, has been unwinding past output cuts. Countries outside this group, in particular those in the Americas, are churning out more barrels, too.
Supply from Russia, the world’s third-biggest producer, remains a wild card. On the one hand, the country faces new US sanctions that threaten to disrupt its exports. But the Trump administration’s renewed effort to secure a deal to end the war in Ukraine has raised the prospect of some international sanctions being unwound, which could ease the flow of Russian barrels into the market.
Who are the winners in a world with an oversupply of oil?
- Oil-importing nations
A low-oil price environment is good for buyers, especially large net importers such as China, which has been filling up its strategic reserves, and India, which has faced US pressure to stop buying Russian crude.
India is the world’s third-biggest consumer of oil. It ramped up its purchases from Russia following the 2022 invasion of Ukraine, as Russian exporters offered big discounts to offset the loss of traditional European buyers. A drop in global prices could make it less painful for India to avoid sanctioned Russian barrels and switch to suppliers in the Middle East, whose medium and heavy crude grades are similar to Russia’s Urals export blend.
- Trump
Cheaper oil can translate into lower fuel prices. Trump likes to use the price of gasoline as an economic barometer and during last year’s election pledged to bring it below $2 a gallon.
Just over 10 months into his second term, the national average price of gasoline had dropped by about 12 cents, although had yet to fall beneath $3 a gallon, a level last seen in 2021. Further reductions in fuel prices could be limited by outages at key oil refineries in Asia and Africa, as well as permanent closures across Europe and the US.
Lower oil prices come with a catch for Trump. If they decline too much, crude extraction could become uneconomical in the US, undermining the president’s “drill, baby, drill” agenda and squeezing his political supporters that rely on the oil industry.
Cheaper oil can translate into lower fuel prices. Trump likes to use the price of gasoline as an economic barometer and during last year’s election pledged to bring it below $2 a gallon.
Just over 10 months into his second term, the national average price of gasoline had dropped by about 12 cents, although had yet to fall beneath $3 a gallon, a level last seen in 2021. Further reductions in fuel prices could be limited by outages at key oil refineries in Asia and Africa, as well as permanent closures across Europe and the US.
Lower oil prices come with a catch for Trump. If they decline too much, crude extraction could become uneconomical in the US, undermining the president’s “drill, baby, drill” agenda and squeezing his political supporters that rely on the oil industry.
- Oil refiners
Cheaper crude can boost the margins that refiners make from turning oil into products such as gasoline, diesel and jet fuel. In mid-November, US refiners’ margins hit their highest seasonal level since 2022.
As global refining capacity is relatively constrained, this limits how much extra oil can be processed and means refined product prices are likely to fall less steeply than for crude. Lower oil prices are therefore more beneficial for countries that import and refine crude themselves, rather than relying on inflows of refined products.
- Oil traders
In the run-up to the oil surplus, the “put skew” for the US oil benchmark West Texas Intermediate — a measure of how much more traders are willing to pay for bearish put options over bullish calls — reached its highest level in a month. That’s a sign speculators are geared up for a price drop.
Meanwhile, just before the US blacklisted Russian oil giants Rosneft PJSC and Lukoil PJSC in October, money managers were the least bullish on US crude on record, according to the most up-to-date investor positioning data, which was delayed by the government shutdown.
As futures prices finally reflect the somber outlook for the market, many investors see this as vindication of their longstanding bearish view. They point to two things as proof they’ve been on the right side of the trade all along: total US crude stockpiles (excluding the Strategic Petroleum Reserve) climbed to their highest level in five months in November, while the volume of crude aboard tankers at sea continues to hit fresh records, suggesting supply is outstripping demand.
- US strategic oil reserve
Low oil prices offer an opportunity for the US to replenish its store of emergency crude, which was only around 60% full as of mid-November. The Strategic Petroleum Reserve remains diminished after the Biden administration released supply into the market to try to tame the gasoline price spike that followed Russia’s full-scale invasion of Ukraine.
Trump vowed during his inaugural address to fill the SPR “right to the top.” Taking advantage of low oil prices, the Energy Department awarded contracts worth almost $56 million in November to procure 900,000 barrels for this stockpile.
However, as part of Trump’s sweeping tax-and-spending law passed over the summer, Congress only appropriated $171 million for oil purchases for the SPR between 2025 and 2029 — a limit the government could hit very quickly. That sum equates to less than 3 million barrels at current prices, which is a far cry from the roughly 300 million barrels needed to bring the SPR to full capacity.
Who are the losers when there’s a global excess of oil?
Cheaper crude can boost the margins that refiners make from turning oil into products such as gasoline, diesel and jet fuel. In mid-November, US refiners’ margins hit their highest seasonal level since 2022.
As global refining capacity is relatively constrained, this limits how much extra oil can be processed and means refined product prices are likely to fall less steeply than for crude. Lower oil prices are therefore more beneficial for countries that import and refine crude themselves, rather than relying on inflows of refined products.
- Oil traders
In the run-up to the oil surplus, the “put skew” for the US oil benchmark West Texas Intermediate — a measure of how much more traders are willing to pay for bearish put options over bullish calls — reached its highest level in a month. That’s a sign speculators are geared up for a price drop.
Meanwhile, just before the US blacklisted Russian oil giants Rosneft PJSC and Lukoil PJSC in October, money managers were the least bullish on US crude on record, according to the most up-to-date investor positioning data, which was delayed by the government shutdown.
As futures prices finally reflect the somber outlook for the market, many investors see this as vindication of their longstanding bearish view. They point to two things as proof they’ve been on the right side of the trade all along: total US crude stockpiles (excluding the Strategic Petroleum Reserve) climbed to their highest level in five months in November, while the volume of crude aboard tankers at sea continues to hit fresh records, suggesting supply is outstripping demand.
- US strategic oil reserve
Low oil prices offer an opportunity for the US to replenish its store of emergency crude, which was only around 60% full as of mid-November. The Strategic Petroleum Reserve remains diminished after the Biden administration released supply into the market to try to tame the gasoline price spike that followed Russia’s full-scale invasion of Ukraine.
Trump vowed during his inaugural address to fill the SPR “right to the top.” Taking advantage of low oil prices, the Energy Department awarded contracts worth almost $56 million in November to procure 900,000 barrels for this stockpile.
However, as part of Trump’s sweeping tax-and-spending law passed over the summer, Congress only appropriated $171 million for oil purchases for the SPR between 2025 and 2029 — a limit the government could hit very quickly. That sum equates to less than 3 million barrels at current prices, which is a far cry from the roughly 300 million barrels needed to bring the SPR to full capacity.
Who are the losers when there’s a global excess of oil?
- Petrostates
For fossil-fuel exporters whose economies are heavily dependent on the oil industry, subdued prices could weigh on their revenue and put pressure on their fiscal budgets.
Saudi Arabia, the world’s second-largest oil producer after the US, is seeking to diversify its economy through the Vision 2030 program. However, the massive investments being made in mega construction projects, such as the flagship Neom development, as well as other initiatives to build Red Sea tourism resorts, electric-vehicle factories and data centers, have arguably left it even more dependent on oil revenue.
While the kingdom has been rejigging its mega-project spending — delaying and scaling back some developments and accelerating others — it’s still expecting a national budget shortfall for the next few years. Bloomberg Economics estimated in November that the Saudi government needs an oil price of $98 a barrel to balance its budget and $115 when including domestic spending by its sovereign wealth fund, the Public Investment Fund. That’s well above this year’s average of $69 a barrel for Brent, the global benchmark, through the start of December.
For fossil-fuel exporters whose economies are heavily dependent on the oil industry, subdued prices could weigh on their revenue and put pressure on their fiscal budgets.
Saudi Arabia, the world’s second-largest oil producer after the US, is seeking to diversify its economy through the Vision 2030 program. However, the massive investments being made in mega construction projects, such as the flagship Neom development, as well as other initiatives to build Red Sea tourism resorts, electric-vehicle factories and data centers, have arguably left it even more dependent on oil revenue.
While the kingdom has been rejigging its mega-project spending — delaying and scaling back some developments and accelerating others — it’s still expecting a national budget shortfall for the next few years. Bloomberg Economics estimated in November that the Saudi government needs an oil price of $98 a barrel to balance its budget and $115 when including domestic spending by its sovereign wealth fund, the Public Investment Fund. That’s well above this year’s average of $69 a barrel for Brent, the global benchmark, through the start of December.
- Russia
Western sanctions have made Russian oil exporters heavily dependent on buyers in China and India, who have demanded discounts to keep importing this seaborne crude. In the absence of a peace deal to end the war in Ukraine, the new US sanctions and an oversupplied global market could force Russian producers to cut their prices even further.
As the US ban on dealings with Rosneft and Lukoil started to come into force in November, Russia’s flagship Urals blend was more than $20 a barrel cheaper than Brent, according to data from Argus Media. While that gap is significantly smaller than in the earlier years of the war in Ukraine, it’s still markedly wider than the historical discount of $2 to $4.
Taxes from Russia’s oil and gas industry account for about a quarter of the federal budget. Even before the new sanctions were announced, the government expected tax revenue from the sector this year to drop to the lowest level since 2020 due to the global crude price slump and a stronger ruble.
Russian authorities have downplayed the potential economic impact of the fresh US restrictions, saying the country will adapt quickly and find workarounds, allowing discounts on its oil to narrow within a couple of months. In the meantime, the volume of Russian oil aboard tankers has increased, suggesting that buyers are, at least in the short term, less willing to take delivery of these cargoes.
Western sanctions have made Russian oil exporters heavily dependent on buyers in China and India, who have demanded discounts to keep importing this seaborne crude. In the absence of a peace deal to end the war in Ukraine, the new US sanctions and an oversupplied global market could force Russian producers to cut their prices even further.
As the US ban on dealings with Rosneft and Lukoil started to come into force in November, Russia’s flagship Urals blend was more than $20 a barrel cheaper than Brent, according to data from Argus Media. While that gap is significantly smaller than in the earlier years of the war in Ukraine, it’s still markedly wider than the historical discount of $2 to $4.
Taxes from Russia’s oil and gas industry account for about a quarter of the federal budget. Even before the new sanctions were announced, the government expected tax revenue from the sector this year to drop to the lowest level since 2020 due to the global crude price slump and a stronger ruble.
Russian authorities have downplayed the potential economic impact of the fresh US restrictions, saying the country will adapt quickly and find workarounds, allowing discounts on its oil to narrow within a couple of months. In the meantime, the volume of Russian oil aboard tankers has increased, suggesting that buyers are, at least in the short term, less willing to take delivery of these cargoes.
- US shale industry
The US shale industry has been the world’s engine for oil-production growth in recent years but the momentum is now slowing. Many producers need an oil price of around $65 a barrel to turn a profit and have been looking to increase their output at less than 5% annually as crude prices hover near the break-even threshold.
A global oil surplus that knocks prices down to about $50 a barrel would prompt US shale producers to idle their drilling rigs and park their frack fleets as operations become economically unviable.
Their output is holding up for now, but more than 10% of oil-focused rigs have been taken offline since the start of the year, according to data from Baker Hughes Co. The decline will likely accelerate in the coming months if oil prices stay low, which could put pressure on oilfield services companies.
Sustained lower oil prices could prompt more consolidation in the US shale patch. Mid-sized producers could scoop up struggling smaller players to add scale as some of the best drilling spots have already been tapped.
- Big Oil
Low oil prices are bad for producers, although integrated oil majors with refining and trading businesses are less vulnerable than pure upstream companies that focus only on extraction.
The profits of the five Western oil supermajors — Exxon Mobil Corp., Chevron Corp., Shell Plc, TotalEnergies SE and BP Plc — have more than halved from three years ago and are poised to decline further. Still, the current oil price downturn isn’t as bad as in 2014 or 2020. Big Oil executives saw this decline coming and announced plans to cut share buybacks and costs earlier this year.
Some executives are even talking up possible opportunities. Exxon, for example, is on the lookout for potential acquisitions. Meanwhile, Occidental Petroleum Corp. Chief Executive Officer Vicki Hollub said in mid-October that low prices today will deter the investments needed for the future and tighten supply, making her “very bullish” on a price rebound from 2027.
Low oil prices are bad for producers, although integrated oil majors with refining and trading businesses are less vulnerable than pure upstream companies that focus only on extraction.
The profits of the five Western oil supermajors — Exxon Mobil Corp., Chevron Corp., Shell Plc, TotalEnergies SE and BP Plc — have more than halved from three years ago and are poised to decline further. Still, the current oil price downturn isn’t as bad as in 2014 or 2020. Big Oil executives saw this decline coming and announced plans to cut share buybacks and costs earlier this year.
Some executives are even talking up possible opportunities. Exxon, for example, is on the lookout for potential acquisitions. Meanwhile, Occidental Petroleum Corp. Chief Executive Officer Vicki Hollub said in mid-October that low prices today will deter the investments needed for the future and tighten supply, making her “very bullish” on a price rebound from 2027.
- The energy transition
Road transport is the biggest source of oil demand. Consumers are used to a certain amount of volatility in fuel prices, but a prolonged reduction could make them less inclined to switch to an electric vehicle. That said, in areas where there are high taxes on diesel and gasoline, such as Europe and California, there could be limited relief at the pump from lower oil prices.
The buildout of clean power sources is less likely to be impacted by a crude surplus. In most regions, other than places such as the Middle East, renewables are usually competing against coal and natural gas for utility-scale electricity generation rather than oil.
Saudis Tout ‘Vibrant’ IPO Pipeline Ahead of Market Reforms - Bloomberg
Saudis Tout ‘Vibrant’ IPO Pipeline Ahead of Market Reforms - Bloomberg
Saudi Arabia has dozens of companies seeking approval to list shares locally as the kingdom presses ahead with reforms to deepen its financial markets and draw more foreign investors.
“We have listed more than 40 since the beginning of this year and we have the same number that have already applied,” Mohammed Al-Rumaih, chief executive officer of the Saudi stock exchange, said at the FII Priority Asia Summit in Tokyo.
The tally of IPO hopefuls climbs to as many as 100 when adding local firms in the process of seeking financial advisers, he added, describing the pipeline as “very vibrant.”
Saudi Arabia has seen nearly $4.5 billion raised through IPOs on both its main market and Nomu parallel market in 2025, its strongest year since 2022, according to data compiled by Bloomberg. The biggest deals included low-cost airline Flynas Co., which has slid since its June debut, and Mecca developer Umm Al Qura for Development & Construction Co., which has been one of the top-performing listings in the region this year.
Al-Rumaih confirmed the kingdom is pressing ahead with reforms to open its equity market to all foreign investors, in addition to taking steps to lift foreign ownership limits. Analysts have said such adjustments would attract more funds to the Saudi market and spark foreign interest in mergers and acquisitions of companies from the kingdom.
Saudi Arabia has been accelerating the pace of market reforms in the past six months. The need for foreign inflows has become increasingly pronounced as high spending and lower oil revenues drive the government into deeper budget deficits, threatening to slow investment in the economy.
Regulators are also looking to revive the stock market. The Saudi benchmark Tadawul All Share Index is down about 12% so far in 2025, on course for its worst annual performance since 2015. That has slowed the pace of share sales by large companies, though a clutch of smaller firms are still braving the subdued market.
Car-rental operator Cherry Trading started trading on the Saudi exchange on Monday, closing nearly 6% below its IPO price in its first session. Almasar Alshamil Education Co. will also debut this week. Saudi Arabia’s Public Investment Fund has slowed work on IPOs in the wake of the falling index and weak trading debuts, Bloomberg reported previously.
Outside of equities, Saudi Arabia’s stock exchange operator and markets regulator are focusing on developing the debt and derivatives markets, Al-Rumaih said.
Debt is becoming increasingly important as companies look to the private sector to help drive development, while the latter will undergo a “major revamp” in the first quarter of 2026, he added, without offering further details.
Saudi Arabia has dozens of companies seeking approval to list shares locally as the kingdom presses ahead with reforms to deepen its financial markets and draw more foreign investors.
“We have listed more than 40 since the beginning of this year and we have the same number that have already applied,” Mohammed Al-Rumaih, chief executive officer of the Saudi stock exchange, said at the FII Priority Asia Summit in Tokyo.
The tally of IPO hopefuls climbs to as many as 100 when adding local firms in the process of seeking financial advisers, he added, describing the pipeline as “very vibrant.”
Saudi Arabia has seen nearly $4.5 billion raised through IPOs on both its main market and Nomu parallel market in 2025, its strongest year since 2022, according to data compiled by Bloomberg. The biggest deals included low-cost airline Flynas Co., which has slid since its June debut, and Mecca developer Umm Al Qura for Development & Construction Co., which has been one of the top-performing listings in the region this year.
Al-Rumaih confirmed the kingdom is pressing ahead with reforms to open its equity market to all foreign investors, in addition to taking steps to lift foreign ownership limits. Analysts have said such adjustments would attract more funds to the Saudi market and spark foreign interest in mergers and acquisitions of companies from the kingdom.
Saudi Arabia has been accelerating the pace of market reforms in the past six months. The need for foreign inflows has become increasingly pronounced as high spending and lower oil revenues drive the government into deeper budget deficits, threatening to slow investment in the economy.
Regulators are also looking to revive the stock market. The Saudi benchmark Tadawul All Share Index is down about 12% so far in 2025, on course for its worst annual performance since 2015. That has slowed the pace of share sales by large companies, though a clutch of smaller firms are still braving the subdued market.
Car-rental operator Cherry Trading started trading on the Saudi exchange on Monday, closing nearly 6% below its IPO price in its first session. Almasar Alshamil Education Co. will also debut this week. Saudi Arabia’s Public Investment Fund has slowed work on IPOs in the wake of the falling index and weak trading debuts, Bloomberg reported previously.
Outside of equities, Saudi Arabia’s stock exchange operator and markets regulator are focusing on developing the debt and derivatives markets, Al-Rumaih said.
Debt is becoming increasingly important as companies look to the private sector to help drive development, while the latter will undergo a “major revamp” in the first quarter of 2026, he added, without offering further details.
#SaudiArabia launches bidding for 13,000 sq km mineral exploration licences | Reuters
Saudi Arabia launches bidding for 13,000 sq km mineral exploration licences | Reuters
Saudi Arabia opened a bidding round for three mineral exploration licences across a 13,000 square km area, the Industry and Mineral Resources Ministry said in a statement on Monday, as the kingdom accelerates efforts to tap deposits estimated at 9.4 trillion riyals ($2.50 trillion).
The licences cover newly defined belts in the regions of Madinah, Makkah, Riyadh, Qassim and Hail, including areas prospective for gold, silver, copper, zinc and lead.
Saudi Arabia opened a bidding round for three mineral exploration licences across a 13,000 square km area, the Industry and Mineral Resources Ministry said in a statement on Monday, as the kingdom accelerates efforts to tap deposits estimated at 9.4 trillion riyals ($2.50 trillion).
The licences cover newly defined belts in the regions of Madinah, Makkah, Riyadh, Qassim and Hail, including areas prospective for gold, silver, copper, zinc and lead.
Gulf markets mixed on US rate cut hopes | Reuters #AbuDhabi #Dubai closed for National Day holiday
Gulf markets mixed on US rate cut hopes | Reuters
Gulf stock markets closed mixed on Monday, as optimism rose over a potential U.S. Federal Reserve rate cut.
Dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker-than-expected U.S. economic data, have solidified market expectations for a December rate cut.
CME FedWatch Tool currently prices in an 87% probability of easing from 30% earlier in November.
Core U.S. Personal Consumption Expenditures figures on Friday could provide further cues on the Fed's monetary policy path.
Shifts in U.S. monetary policy have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
In Qatar, the index (.QSI), opens new tab edged 0.1%, helped by a 1.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5% on a 0.5% fall in Al Rajhi Bank (1120.SE), opens new tab and a 0.9% slide in oil major Saudi Aramco (2222.SE), opens new tab.
Elsewhere, Cherry Trading (4265.SE), opens new tab plunged 5.7% to 26.5 riyals in its debut trade.
"Risk-off" sentiment continues even though the non-oil economy remains backed by solid fundamentals and a positive growth outlook. Neither the rebound in oil prices nor the anticipated December Fed rate cut was enough to lift sentiment, said Daniel Takieddine Co-founder and CEO, Sky Links Capital Group.
"Additionally, liquidity remains constrained due to the high volume of initial public offerings introduced on the market this year."
Oil prices - a catalyst for the Gulf's financial markets - rose 1% as the Caspian Pipeline Consortium halted exports after a major drone attack and U.S.-Venezuela tensions raised concerns about supply, while OPEC+ agreed to leave oil output levels unchanged for the first quarter of 2026.
Brent crude futures advanced 71 cents, or 1.14%, to $63.09 a barrel at 1143 GMT. The contract settled down on Friday for the fourth consecutive month, its longest losing streak since 2023, as expectations for higher global supply weighed on prices.
Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.2%, hit by a 2.1% drop in Telecom Egypt (ETEL.CA), opens new tab.
Gulf stock markets closed mixed on Monday, as optimism rose over a potential U.S. Federal Reserve rate cut.
Dovish comments from Federal Reserve Governor Christopher Waller and New York Fed President John Williams, combined with weaker-than-expected U.S. economic data, have solidified market expectations for a December rate cut.
CME FedWatch Tool currently prices in an 87% probability of easing from 30% earlier in November.
Core U.S. Personal Consumption Expenditures figures on Friday could provide further cues on the Fed's monetary policy path.
Shifts in U.S. monetary policy have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
In Qatar, the index (.QSI), opens new tab edged 0.1%, helped by a 1.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5% on a 0.5% fall in Al Rajhi Bank (1120.SE), opens new tab and a 0.9% slide in oil major Saudi Aramco (2222.SE), opens new tab.
Elsewhere, Cherry Trading (4265.SE), opens new tab plunged 5.7% to 26.5 riyals in its debut trade.
"Risk-off" sentiment continues even though the non-oil economy remains backed by solid fundamentals and a positive growth outlook. Neither the rebound in oil prices nor the anticipated December Fed rate cut was enough to lift sentiment, said Daniel Takieddine Co-founder and CEO, Sky Links Capital Group.
"Additionally, liquidity remains constrained due to the high volume of initial public offerings introduced on the market this year."
Oil prices - a catalyst for the Gulf's financial markets - rose 1% as the Caspian Pipeline Consortium halted exports after a major drone attack and U.S.-Venezuela tensions raised concerns about supply, while OPEC+ agreed to leave oil output levels unchanged for the first quarter of 2026.
Brent crude futures advanced 71 cents, or 1.14%, to $63.09 a barrel at 1143 GMT. The contract settled down on Friday for the fourth consecutive month, its longest losing streak since 2023, as expectations for higher global supply weighed on prices.
Crude prices, even after the recent rebound, are still hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.2%, hit by a 2.1% drop in Telecom Egypt (ETEL.CA), opens new tab.
#Saudi Wealth Fund Closes In on Investing in Leonardo Business - Bloomberg
Saudi Wealth Fund Closes In on Investing in Leonardo Business - Bloomberg
Saudi Arabia’s sovereign wealth fund is in advanced talks to invest in Leonardo SpA’s aerostructures unit following months of negotiations, according to people familiar with the matter.
Under the deal being discussed, the two parties would create a global unit for aerostructure works, said the people, asking not to be identified discussing a private matter. The talks between the Italian defense contractor and the kingdom’s Public Investment Fund, reported earlier this year by Bloomberg, are largely complete, they said.
A planned meeting between Italian Prime Minister Giorgia Meloni and Saudi Crown Prince Mohammed bin Salman at a Gulf summit in Bahrain could be pivotal in securing final government approvals, the people said.
Representatives for Leonardo and the Italian government, which owns 30% of the company, declined to comment, while officials at the Saudi fund didn’t immediately respond to a request for comment outside of regular business hours in the country.
Working with Leonardo would give the Gulf state greater exposure to a key global manufacturing industry as bin Salman seeks to diversify Saudi Arabia’s economy from oil.
For Leonardo, a deal would bring financial support for a division that’s been losing money. It supplies major structural parts for Boeing Co.’s 787 Dreamliner, but suffered losses partly tied to a production slowdown in the US. That has affected activity at Leonardo’s plants, though Boeing is now ramping up output again of the widebody jet.
Leonardo’s aerostructures division employs about 4,000 people in four Italian plants. It had 2024 revenue of €746 million ($784 million).
One possible outcome is for the Italian aerospace firm to build a civil aviation manufacturing plant in Saudi Arabia, Bloomberg reported in February. The Gulf state is also keen to participate in a next-generation fighter jet, a costly project on which the Italian company is working with partners in the UK and Japan.
Italy and Saudi Arabia have recently deepened economic ties. A meeting between the two leaders in January paved the way for deals valued at about $10 billion.
Saudi Arabia’s sovereign wealth fund is in advanced talks to invest in Leonardo SpA’s aerostructures unit following months of negotiations, according to people familiar with the matter.
Under the deal being discussed, the two parties would create a global unit for aerostructure works, said the people, asking not to be identified discussing a private matter. The talks between the Italian defense contractor and the kingdom’s Public Investment Fund, reported earlier this year by Bloomberg, are largely complete, they said.
A planned meeting between Italian Prime Minister Giorgia Meloni and Saudi Crown Prince Mohammed bin Salman at a Gulf summit in Bahrain could be pivotal in securing final government approvals, the people said.
Representatives for Leonardo and the Italian government, which owns 30% of the company, declined to comment, while officials at the Saudi fund didn’t immediately respond to a request for comment outside of regular business hours in the country.
Working with Leonardo would give the Gulf state greater exposure to a key global manufacturing industry as bin Salman seeks to diversify Saudi Arabia’s economy from oil.
For Leonardo, a deal would bring financial support for a division that’s been losing money. It supplies major structural parts for Boeing Co.’s 787 Dreamliner, but suffered losses partly tied to a production slowdown in the US. That has affected activity at Leonardo’s plants, though Boeing is now ramping up output again of the widebody jet.
Leonardo’s aerostructures division employs about 4,000 people in four Italian plants. It had 2024 revenue of €746 million ($784 million).
One possible outcome is for the Italian aerospace firm to build a civil aviation manufacturing plant in Saudi Arabia, Bloomberg reported in February. The Gulf state is also keen to participate in a next-generation fighter jet, a costly project on which the Italian company is working with partners in the UK and Japan.
Italy and Saudi Arabia have recently deepened economic ties. A meeting between the two leaders in January paved the way for deals valued at about $10 billion.
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