S&P Global lowers 2023 growth forecast for emerging markets
Updated 29 November 2022
Reuters
BENGALURU: S&P Global Ratings lowered its 2023 growth forecast for emerging economies on Tuesday, citing persistent pressures from the Russia-Ukraine conflict, a lingering COVID-19 pandemic and tight monetary policy conditions, according to Reuters.
The ratings agency now projects real gross domestic product growth of 3.8 percent next year, down from its previous forecast of a 4.1 percent expansion.
“The downward revision to growth comes from all EMs (emerging markets) excluding China and Saudi Arabia, with most economies poised to expand below their longer-run trend rates,” it said, adding that forecasts for 2024 and 2025 remain broadly unchanged, averaging at 4.3 percent.
While inflation in emerging markets have passed the peak or are peaking soon on the back of declining food and fuel inflation, it is still poised to remain above central banks’ targets in many economies, forcing monetary policies to stay restrictive, the agency warned.
“But the deceleration in inflation--coupled with a worsening growth outlook--could bring policy easing onto the agenda in several EMs, especially in Latin America, by the middle of next year,” S&P said.
Saudi CMA approves three parallel market listings in a single day
Updated 5 sec ago
Nour El-Shaeri
RIYADH: Three Saudi firms received regulatory approval to list on Nomu in a single day, underscoring growing investor appetite for the Kingdom’s bourses.
Zahr Al Khuzama Aluminum, Sahat Almajd Trading, and Quality Education Co. were given the green light by the Capital Market Authority on June 18, marking a rare instance of multiple listings being cleared simultaneously.
This paves the way for all three companies to offer shares exclusively to qualified investors, with each expected to publish its prospectus ahead of the offerings.
The surge in simultaneous approvals comes amid broader reforms to Saudi Arabia’s capital markets, as the Capital Market Authority rolls out new frameworks — including regulations for special purpose acquisition companies — to expand financing options and boost private-sector participation.
An official release stated that Sahat Almajd Co. Trading will float 4.375 million shares on the parallel market, representing 11.11 percent of its capital.
Quality Education Co. will offer 2.5 million shares, accounting for 20 percent, while Zahr Al Khuzama Aluminum can offer 300,000 shares, also representing 20 percent.
The approvals highlight the role of Nomu as a streamlined listing venue designed to enable micro, small, and medium-sized enterprises to access capital. With lighter requirements for market capitalization, public float, and disclosure, it offers a more accessible alternative to the main market.
In 2024, Nomu recorded 28 initial public offerings and three direct listings, raising over SR1.1 billion ($293.2 million).
The platform has become central to Saudi Arabia’s efforts to deepen its equity markets and support SMEs, which now constitute 30 percent of listed companies in Saudi Arabia.
The Kingdom is targeting a 35 percent contribution from the SME sector to its gross domestic product by 2030, in line with the Vision 2030 economic diversification plan.
Investor appetite for listings remains strong. Al Rajhi Capital forecasts 50 to 60 IPOs across Saudi exchanges over the next two years.
Separately, EY projects 27 IPOs in Saudi Arabia in 2025 — out of 38 corporate listings anticipated across the Middle East and North Africa region — along with 22 fund listings.
The triple listing approvals came as Nomu posted a dip in market performance but maintained healthy trading activity.
On June 18 — the same day the CMA cleared the three IPOs — the Nomu index closed at 26,203.84, down from 26,458.24 the previous day.
Despite the decline, the market recorded a volume of 3.58 million shares traded across 5,651 transactions, reflecting continued engagement from qualified investors.
Over the past month, Nomu’s index has retreated from a high of 27,499.65 on May 19, with intermittent recoveries.
Trading volumes have remained relatively stable, averaging around 3.2 million to 4.5 million shares daily.
The highest daily value traded during this period reached SR50.4 million on June 1, signaling strong liquidity ahead of the CMA’s latest approvals.
Over the past month, Nomu recorded an average daily trading value of SR36.36 million.
Jordan sees 35% rise in new company registrations in first 5 months of 2025
Updated 29 min 14 sec ago
Nadin Hassan
RIYADH: Jordan recorded an increase in company registrations during the first five months of 2025, rising by 35 percent compared to the same period in 2019 and 13 percent up on 2024.
A total of 2,980 companies were registered between January and May, compared to 2,213 in the same months of 2019 and 2,635 in 2024, according to the state-run Petra news agency.
The total capital associated with these newly registered companies exceeded 130 million Jordanian dinars ($183.3 million).
The robust economic rebound comes after Fitch affirmed Jordan’s long‑term foreign‑currency issuer default rating at “BB‑” with a stable outlook in May, citing macroeconomic stability, progress in fiscal and economic reforms, and resilient financing sources such as a liquid banking sector.
Limited liability companies represented the majority of these new businesses, with 2,158 entities accounting for 72.4 percent of the total. These firms registered a combined capital of more than 48 million dinars during the reporting period.
The data also pointed to a steep drop in the number of companies that were dissolved or deregistered. Only 478 companies ceased operations between January and May.
This marks an 84 percent decline compared to the 2,390 closures recorded in the same period in 2019 and a 46 percent decrease from the 878 closures registered in 2024.
There was a substantial increase in the net capital growth of companies. Net capital increases between January and May stood at 727 million dinars, representing a 1,133 percent rise compared to the 85 million dinars reported in the same period of 2019.
Compared to 2024, which saw net capital increases of 229 million dinars, this reflects a 293 percent growth.
Petra reported that the number of companies opting to reduce their capital dropped significantly to 127 in 2025, down from 243 in 2019.
Some 750 companies raised their capital during the first five months of the year, more than double the 288 capital increases registered over the same months in 2019.
The data suggests a robust rebound in entrepreneurial activity and investor confidence in Jordan, reflecting broader economic stabilization and growth trends.
Oil Updates — prices jump after Israel broadens attack on Iran’s nuclear sites
Updated 19 June 2025
Reuters Arab News
BEIJING: Oil prices surged on Thursday after Israel said it attacked Iranian nuclear sites in Natanz and Arak overnight and as investors grappled with fears of a broader conflict in the Middle East that could disrupt crude supplies.
Brent crude futures rose 88 cents, or 1.15 percent, to $77.58 a barrel by 10:08 a.m. Saudi time, after gaining 0.3 percent in the previous session when high volatility saw prices fall as much as 2.7 percent.
US West Texas Intermediate crude for July rose $1.11, or 1.48 percent to $76.25 a barrel, after settling up 0.4 percent in the previous when it dropped as much as 2.4 percent.
The July contract expires on Friday and the more active August contract rose 92 cents, or 1.25 percent, to $74.42 a barrel.
There is still a “healthy risk premium baked into the price as traders await to see whether the next stage of the Israel-Iran conflict is a US strike or peace talks,” Tony Sycamore, market analyst at IG, said in a client note.
Goldman Sachs on Wednesday said a geopolitical risk premium of about $10 a barrel is justified given lower Iranian supply and risk of wider disruption that could push Brent crude above $90.
Trump on Wednesday told reporters that he may or may not decide whether the US will join Israel in its attacks on Iran. The conflict stretched into its seventh day on Thursday.
As a result of the unpredictability that has long characterised Trump’s foreign policy, “markets remain jittery, awaiting firmer signals that could influence global oil supply and regional stability,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
The risk of major energy disruptions will rise if Iran feels existentially threatened, and the US entry into the conflict could trigger direct attacks on tankers and energy infrastructure, said RBC Capital’s analyst Helima Croft.
Iran is the third-largest producer among members of the Organization of the Petroleum Exporting Countries, extracting about 3.3 million barrels per day of crude oil.
About 19 million bpd of oil and oil products move through the Strait of Hormuz along Iran’s southern coast and there is widespread concern the fighting could disrupt trade flows.
Separately, the US Federal Reserve kept its interest rates steady on Wednesday but pencilled in two cuts by the end of the year. Chair Jerome Powell said cuts would be “data-dependent” and that it expects accelerated consumer inflation from Trump’s planned import tariffs.
Lower interest rates would stimulate the economy, and as a result demand for oil, but that could exacerbate inflation.
Closing Bell: Saudi main index slips 1.15% to close at 10,591
MSCI Tadawul Index decreased by 11.84 points to close at 1,366.6
Parallel market Nomu lost 254.4 points to end at 26,203.84 points
Updated 18 June 2025
Nadin Hassan
RIYADH: Saudi Arabia’s Tadawul All Share Index declined on Wednesday by 122.69 points, or 1.15 percent, to end at 10,591.13.
Total trading turnover of the benchmark index was SR6.22 billion ($1.66 billion), with 18 stocks advancing and 231 declining.
The MSCI Tadawul Index also decreased by 11.84 points, or 0.86 percent, to close at 1,366.6
The Kingdom’s parallel market, Nomu, reported drops, losing 254.4 points, or 0.96 percent, to close at 26,203.84 points. This comes as 30 stocks advanced while as many as 55 retreated.
Among the top gainers, BAAN Holding Group Co. rose 1.6 percent to SR36.85, while Advanced Petrochemical Co. added 1.26 percent to end at SR28.1.
Dallah Healthcare Co. and Naseej International Trading Co. gained 1.05 percent and 0.94 percent, respectively, closing at SR115.4 and SR74.90.
Saudi Tadawul Group Holding Co. also rose 0.87 percent to close at SR162.
Among the worst performers, National Co. for Learning and Education led losses with a decline of 7.53 percent to close at SR140.
Saudi Marketing Co. followed, shedding 7.04 percent to settle at SR15.32, while Ataa Educational Co. fell 5.85 percent to SR61.20.
Arabian Pipes Co. ended the session down 5.46 percent at SR5.54, and Saudi Reinsurance Co. edged 5.13 percent lower to SR42.55.
On the announcements front, Saudi National Bank announced its intention to fully redeem its SR4.2 billion Tier-1 capital sukuk at face value on June 30, marking the fifth anniversary of its issuance.
The sukuk, which was issued on June 30, 2020, with a total value of SR4.2 billion, will be redeemed at 100 percent of the issue price in accordance with its terms and conditions.
The bank confirmed that all necessary regulatory approvals for the redemption have already been obtained.
SNB closed Wednesday’s session 0.43 percent lower to reach SR34.35.
Saudi Arabia’s low-cost carrier flynas made its stock market debut, opening at SR77.50 and climbing to SR84.10 before retreating to a low of SR69.90. The stock closed at SR77.30, 3 percent below its IPO price of SR80.
Saudi Arabia ranks 17th globally in competitiveness index as it outshines economic heavyweights
Listing driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms
Kingdom placed behind China in 16th and ahead of Australia in 18th place
Updated 18 June 2025
MOHAMMED AL-KINANI
JEDDAH: Saudi Arabia has maintained its spot in the top 20 of the World Competitiveness Ranking, ahead of global heavyweights like the UK, Germany and France.
The Kingdom secured 17th position on the list, driven by strong governance, infrastructure upgrades, diversification, and regulatory reforms.
Issued by the International Institute for Management Development’s World Competitiveness Center, the ranking is widely recognized as a benchmark for evaluating how effectively countries utilize their resources to drive long-term economic growth.
Saudi Arabia was placed just behind China in 16th and ahead of Australia in 18th place.
Although this marks a slight drop from 16th in 2024, Saudi Arabia’s 2025 ranking represents a significant improvement from 32nd in 2023 and 24th in 2022, underscoring its rising economic stature.
Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. File/SPA
As part of Vision 2030, Saudi Arabia launched the National Competitiveness Center in 2019, with the organization now working with 65 government bodies to drive reforms centered on productivity, sustainability, inclusiveness, and resilience.
According to the World Competitiveness Center, the Kingdom needs to “continue efforts to promote renewable energy and reduce carbon emissions” and “carry on enhancing overall competitiveness across multiple pillars.”
Improvement will also come if Saudi Arabia continues to “invest even more in human capital development across all economic sectors” and push ahead with “ongoing government endeavors to achieve the targets in the Saudi 2030 vision.”
The IMD report is one of the world’s most comprehensive competitiveness benchmarks, evaluating 69 countries across four pillars: economic performance, government efficiency, business efficiency, and infrastructure.
The ranking shows that GCC countries continue to demonstrate their growing economic strength and regional importance, with the UAE leading the group, securing fifth place globally, reflecting its diversified economy and strategic initiatives to attract investment.
Qatar follows in ninth place, supported by substantial infrastructure development and robust financial resources.
Bahrain was ranked 22, Oman came in at 28, and Kuwait was placed at 36, showing steady progress through structural reforms and sectoral investment despite ongoing challenges.
These rankings underscore the GCC’s ambition to strengthen global economic resilience and competitiveness.
Switzerland, Singapore, and Hong Kong lead the ranking, while Canada, Germany, and Luxembourg saw the most notable improvements among the top 20 economies.
Saudi focus
According to the IMD, Saudi Arabia has made progress in several key economic areas, although some aspects still require improvement.
On the economic performance indicator, the Kingdom ranks 17th globally with a score of 62.3. Its domestic economy scored 59.2, placing it 25th worldwide, an improvement of six positions from the previous year.
Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Shutterstock
International trade advanced three places to 29th with a score of 56.0, while global investment climbed four spots to 16th with a score of 57.8, signaling increased investor confidence.
However, the employment sector declined slightly, dropping three positions to 29th with a score of 55.6.
Inflationary pressures impacted the prices indicator, which fell eight places to 19th despite maintaining a relatively strong score of 60.7.
These mixed results reflect Saudi Arabia’s ongoing efforts to strike a balance between growth and economic stability amid global and domestic challenges.
Public finance indicators remain solid, with a score of 69.5, placing the Kingdom 13th globally, despite a modest three-position drop.
Tax policy holds steady at 67.6 points and 12th place, with a similar three-rank decline. The institutional framework experienced a more pronounced decline, dropping seven places to 27th with a score of 58.6, indicating potential areas for reform.
In contrast, business legislation improved, rising two places to 13th with a score of 67.6, indicating regulatory progress. The societal framework remains a key challenge, ranking 55th with a score of 44.2, representing a nine-position decline, which highlights the need for continued social and structural development to support economic goals.
Saudi Arabia ranked 12th globally in business efficiency with a strong score of 81.4. Productivity and efficiency showed further strength, scoring 66 and placing the Kingdom 15th, up six spots.
The labor market remains a key strength, ranking 9th despite a four-place drop, with a score of 64.2. The finance sector gained three ranks to 19th with 63.4 points, while management practices rose to 17th with a score of 64.
Attitudes and values remain a significant national asset, ranking third globally with a score of 81.6, reflecting a strong culture of resilience and ambition.
Infrastructure continues to show marked improvement. Basic infrastructure ranks seventh globally with a score of 67.6, up two positions. Technological infrastructure rose 10 places to 23rd with a score of 59.5, and scientific infrastructure improved nine spots to 29th with a score of 52.1.
Health and environment indicators gained slightly, moving up one place to 47th with a score of 47.5. Education declined marginally, down one position to 39th with a score of 55.4, signaling an area for continued focus.
