Closing Bell – Saudi indexes end week in green, TASI closes at 12,188

The best-performing stock of the day was Saudi Manpower Solutions Co. Shutterstock
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Updated 18 July 2024
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Closing Bell – Saudi indexes end week in green, TASI closes at 12,188

RIYADH: Saudi Arabia’s Tadawul All Share Index ended the week in green, gaining 30.71 points, or 0.25 percent, to close at 12,188.32.         

The total trading turnover of the benchmark index was SR8.7 billion ($2.3 billion) as 108 of the listed stocks advanced, while 113 retreated.   

Similarly, the MSCI Tadawul Index also gained 6.61 points, or 0.43 percent, to close at 1,527.   

The Kingdom’s parallel market Nomu dropped 185.57 points, or 0.72 percent, to close at 25,702.34. This comes as 32 of the listed stocks advanced, while as many as 33 retreated.   

The best-performing stock of the day was Saudi Manpower Solutions Co., with the company’s share price surging 6.33 percent to SR9.41.    

Other top performers include Saudi Public Transport Co. as well as Tourism Enterprise Co., whose share prices soared by 5.83 percent and 5.06 percent, to stand at SR18.88 and SR0.83 respectively.    

In addition to this, other top performers included Saudi Industrial Development Co. and National Gypsum Co.  

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 7.69 percent to SR0.12.     

Others to see falls were Al Sagr Cooperative Insurance Co. as well as Leejam Sports Co., whose share prices dropped by 6.19 percent and 3.12 percent to stand at SR23.34 and SR230, respectively.    

AYYAN Investment Co. and B MBC Group Co. also recorded falls.

On the announcement front, Advanced Petrochemical Co. announced a net loss of SR17 million for the first half of 2024, a significant decline from the SR103 million net profit recorded during the same period in the previous year. 

The company attributed this downturn to several factors, including a 20 percent year-on-year decrease in sales revenue due to scheduled maintenance activities in 2024. 

Advanced Petrochemical posted a SR67 million loss share in its investment in SK Advanced for the current six-month period, compared to a SR43 million loss in the first half of 2023. 

In the second quarter of 2024, the company’s net profit decreased by 30 percent to SR42 million, down from SR60 million in the same period of 2023. This reduction was primarily driven by a 12 percent year-on-year increase in propane prices, despite an overall rise in quarterly revenues. 


UK firms should consider dual listings in Saudi Arabia, says British minister

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UK firms should consider dual listings in Saudi Arabia, says British minister

 

RIYADH: Saudi Arabia presents significant opportunities for UK businesses, including the potential for dual listings on the London and Riyadh stock exchanges, according to British Minister of Investment Poppy Gustafsson.  

Speaking with Arab News at the Capital Markets Forum in Riyadh, Gustafsson emphasized the long-standing economic ties between the two nations and the shared ambition to strengthen investment and trade links.  

Gustafsson underscored the importance of educating UK businesses about the advantages of accessing Saudi Arabia’s commercial and trading markets through dual listings.   

This comes as Saudi Arabia and the UK reaffirmed their commitment to strengthening economic ties and boosting bilateral trade to £30 billion ($37.5 billion) by 2030 during UK Prime Minister Keir Starmer’s visit to the Kingdom in December. 

“There’s a huge opportunity for UK businesses to sell their products in Saudi Arabia and access that market more effectively,” she said.   

“I’m here to articulate not just why governments want these partnerships, but what the benefits are for businesses.”  

The UK and Saudi Arabia have already established a governance framework to facilitate economic cooperation, including a recently refreshed memorandum of understanding and the Strategic Oversight Board.   

“The governance structure is in place, and the next phase is to translate these agreements into tangible outcomes, whether through increased investment, trade, or dual listings,” she said.  

Fintech is one sector seeing strong bilateral engagement, with British companies actively exploring opportunities in Saudi Arabia.   

Gustafsson cited the success of a British fintech firm that won a Saudi competition, as well as broader UK expertise in the sector.  

“British fintech companies are recognizing the potential here and establishing offices in Saudi Arabia. That’s beneficial for both sides,” she said.  

“My role in the UK is to support both investment into the UK and investment out of the UK into other regions, whether that’s Saudi Arabia or elsewhere,” Gustafsson said.   

“We have a long historic relationship, and being here (in Saudi Arabia) feels like we are among friends. The goal is to build on that history to solve modern problems and drive growth across both of our nations.”  

The UK and the Gulf Cooperation Council are negotiating a free trade agreement, which is expected to increase trade between the UK and Saudi Arabia by approximately 18 percent.   

Gustafsson highlighted past efforts to deepen commercial ties, citing last year’s Great Futures Conference, where the largest UK trade delegation in a decade brought 450 British companies to Saudi Arabia.   

“A lot of investments came off the back of that,” she said, adding that improved e-visa processes and new direct flights are further facilitating business exchanges.  

A key focus of the forum was capital market collaboration, particularly in enabling British companies to pursue dual listings in Saudi Arabia and vice versa.   

“The UK has a great heritage in financial institutions and a strong stock exchange, while Saudi Arabia has a rapidly growing domestic market,” Gustafsson noted.   

“By sharing expertise, we can create opportunities for British companies to dual list or for Saudi companies to raise debt in the UK.”   

Islamic finance is another key area of collaboration. “The UK has been innovative in capital markets, particularly in structuring Islamic finance products,” she said. 

“London has traditionally been the main hub for raising debt financing, and fostering an innovation ecosystem requires businesses to access capital markets effectively,” the minister said.   

“Saudi Arabia is working closely with the London Stock Exchange to expand its offering and deepen its market liquidity, ensuring best practices and knowledge-sharing between our two financial hubs,” she added. 


Saudi Arabia’s stock market leads globally in growth: top official

Updated 35 min 1 sec ago
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Saudi Arabia’s stock market leads globally in growth: top official

RIYADH: Saudi Arabia’s capital market is experiencing rapid growth both regionally and globally, with the Kingdom seeing a surge in initial public offerings on both the main index and the parallel market, Nomu, according to an official.

During a panel discussion at the Capital Markets Forum in Riyadh on Feb. 18, Mohammed Al-Rumaih, CEO of Saudi Exchange, announced that liquidity on the Saudi Exchange has increased by 40 percent compared to 2023.

Al-Rumaih’s remarks came shortly after a report by professional services network EY, which forecasted a positive outlook for IPOs in the Middle East and North Africa region in 2025, with Saudi Arabia poised to lead the way.

“2024 was a great year for us. We did more than 55 listings; around 45 in the equity market, 13 on the main market, which doubled compared to 2023, and the rest in the parallel market. It put us as No.1 not just in the region, but globally as the fastest-growing exchange in the world,” said Al-Rumaih. 

He added: “What was great about those listings is that they were well-diversified, different sizes, great stories and it even provided new opportunities for our investors, both local and international. Last year was great, and we expect 2025 to continue the momentum, much bigger and better.”

Al-Rumaih highlighted that Saudi Arabia celebrated the listing of 400 securities in 2024, in addition to the introduction of the capital management system, which he referred to as “one of the great tools we’ve developed.”

“The beauty of this tool is that it made it easier for investors to participate in any IPOs. So, instead of having three receiving banks, now we have 15 which are members of the exchange and that reflected in the subscriptions. For example, subscriptions on Nomu grew by 50 percent,” he added. 

Al-Rumaih added that the capital management system also allows lead managers to consolidate listings quickly, and it has reduced the time from closing the book to listing by 50 percent. 

“Now, you are more efficient in allocating capital. So, if you close an IPO, you can go to another IPO. You get listed immediately, you can exit and enter another listing. So, all these factors have fueled the growth in our listings,” said Al-Rumaih. 

During the panel discussion, Abdulaziz Al-Emadi, acting CEO of the Qatar Stock Exchange, emphasized that developing the capital market is a key goal in the country’s Vision 2030 program.

Al-Emadi further noted that Qatar has established several key performance indicators for capital market growth and is on track to achieve these objectives by the end of the decade.

“The capital market itself has clear KPIs. We should achieve all those KPIs by 2030. Qatar aims to double liquidity, number of listings, and asset management business by 2030. In terms of what we have done in 2024, we did a lot of development in terms of infrastructure. The whole infrastructure has been renewed,” said Al-Emadi. 

He added: “Now, we are talking with Tadawul in order to activate our MoU which was signed in the first quarter of 2022 for dual listing.” 

Haitham Al-Salmi, CEO of Muscat Exchange said that Oman is trying to move its market toward the Emerging Market category, and it is implementing various initiatives to achieve this goal as a part of Vision 2040. 

“We started a strategy of ticking the boxes of all the required market infrastructure to make our market accessible and attractive. In 2024, Oman’s exchange was very active in terms of liquidity boosters and market cap appreciation. We had two listings and one of them was the largest IPO in Oman, bringing $8 billion to the market,” said Al-Salmi. 

Shaikh Khalifa Al-Khalifa, CEO of Bahrain Bourse, stated that the country’s capital market is developing steadily and is preparing to list several government-related entities in the near future.

Highlighting the progress of Bahrain’s non-energy private sector, Al-Khalifa also noted that the oil sector now contributes just 15 percent to the country’s GDP, a significant decline from 40 percent a decade ago.

“There is an IPO pipeline which is being led by the government to list some of the GREs in the exchanges, that will drive the private sector into utilizing the listing. So, we all work together to try to promote to increase the liquidity of the market and increase the number of investors,” said Al-Khalifa. 

Al-Khalifa added that the GCC Exchanges Committee chaired by the Saudi Exchange is playing a crucial role in ensuring the attractiveness of the markets in the region. 

“The GCC Exchanges Committee works in a way that there is less bureaucracy and more action. We meet on a quarterly basis and we entertain ideas. Some of the ideas do not go through, so we move on to other ideas and see what could be possibly be done. The GCC Exchanges Committee also has a short-term vision and a long-term vision,” added Al-Khalifa. 

Talking about the vitality of cross-border investments to propel the growth of the capital markets in the region, Al-Salmi said that investment does not have passports, and what matters most is accessibility. 

“Investors are looking for good opportunities. They can move across borders easily, and the best thing to do is to collaborate. We have almost signed with most of the GCC markets. We are ready in terms of enabling cross-listings, and it is now part of the issuers to decide to cross-list,” said Al-Salmi. 

Al-Emadi said that countries in the GCC region should work further to facilitate the ease of doing business by implementing advanced technology, as well as ensuring market stability to attract investors. 

Al-Rumaih said that the exchanges in the GCC are trying as much as possible to harmonize the regulations, adding that capital markets in the region provide huge opportunities for investors, both domestic and international. 

“GCC countries have a lot of similarities. We have the political stability and the leadership, as well as the transformation and diversifying away from oil, and the young population,” said Al-Rumaih. 


Saudi Tadawul eyes strong growth amid rising listings and foreign investment

Updated 18 February 2025
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Saudi Tadawul eyes strong growth amid rising listings and foreign investment

  • Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
  • It is also expanding its footprint in data innovation and commodity markets

RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group. 

Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity. 

Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Saudi Arabia’s broader economic goals of diversifying its financial sector and attracting international capital. 

“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.” 

Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.” 

Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge. 

“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said. 

The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Saudi Arabia’s rapidly evolving capital market intersects with global finance. 

Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem. 

“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said. 

With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets. 


Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

Updated 58 min 39 sec ago
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Pakistan eyes Gulf market as it aims to double exports in five years — finance minister

  • Pakistan has signed MoUs to ensure business-to-business collaborations with Gulf countries
  • Muhammad Aurangzeb Pakistan wants trade, investment to be the engines of economic growth

KARACHI: Federal Minister for Finance and Revenue Muhammad Aurangzeb has said Pakistan sees huge potential in the Gulf Cooperation Council (GCC) market, as the country plans to double its exports in the next three to five years, according to details of his media interviews shared on Tuesday officially.
The minister and the governor of Pakistan’s central bank, Jameel Ahmad, traveled to Saudi Arabia last Saturday to attend the two-day Alula Conference for Emerging Market Economies 2025, which brought together global financial leaders, including the managing director of the International Monetary Fund, Kristalina Georgieva.
Pakistan has already taken several steps to benefit from the Middle Eastern and Chinese markets, signing memorandums of understanding to ensure business-to-business collaborations and setting up special economic zones to attract foreign investment for greater employment and industrial development.
“Our ambition is that we are roughly about $30 billion plus in terms of exports, and we want to double in the next sort of three to five years,” Aurangzeb said in interviews with Asharq Business and Bloomberg on the sidelines of the Alula Conference in Saudi Arabia.
According to the Pakistan Bureau of Statistics, the country sold $30.7 billion worth of goods in the international market by the end of the last fiscal year in June 2024, showing an 11 percent growth over the $27.7 billion in exports made in 2023.
In the first seven months of the current fiscal year until January, Pakistan’s exports rose 10 percent to $19.6 billion compared with $17.8 billion in the corresponding period a year ago.
The finance minister said his country had progressed in terms of macroeconomic stability in the past 12 to 14 months, pointing out that it was now trying to turn trade and investment into the engines of its economic growth.
“Going forward, I see GCC [Gulf Cooperation Council], where we are sitting right now, we see huge export potential in these markets,” he continued.
The GCC is a regional organization comprising Saudi Arabia, the United Arab Emirates, Bahrain, Qatar, Kuwait and Oman.
Pakistan’s fragile economy has shown signs of stability in the past year, with inflation easing to 2.41 percent in January, creating room for the central bank to reduce borrowing rates by a cumulative 1,000 basis points since June to 12 percent to spur growth.
The State Bank of Pakistan expects 2.5 to 3.5 percent growth in the current fiscal year ending in June.
“We want to now consolidate and use this and the fiscal space which is available to prioritize expenditures that can then help our trajectory as we move forward,” said the minister.


Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

Updated 18 February 2025
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Saudi Arabia’s refinery output hits 2.54m bpd in December, marking 5% annual growth

RIYADH: Saudi Arabia’s refinery output climbed to 2.54 million barrels per day in December, reflecting a 5 percent year-on-year increase, according to the latest data from the Joint Organizations Data Initiative.

Fuel oil, which accounted for 18.2 percent of total refinery output, rose 7 percent over the year to 464,000 bpd. Meanwhile, gas diesel — the largest component of the refinery mix at 40 percent — declined by 5 percent.

Motor and aviation fuel production, which represented 24.7 percent of total output, recorded a 5 percent increase during the same period.

At the same time, refined crude exports saw a slight 1 percent drop, falling to 1.13 million bpd in December. Diesel remained the primary refined product export, making up 36 percent of total shipments, while motor and aviation gasoline contributed 20 percent, and fuel oil accounted for 15 percent.

The report also revealed that the Kingdom’s crude oil production stood at 8.91 million bpd in December, marking a 0.44 percent annual decline. Meanwhile, crude exports fell by 2.57 percent to 6.15 million bpd.

Domestic demand for refinery products also recorded a slight dip, decreasing by 26,000 bpd year on year to 2.29 million bpd.

OPEC+ countries, which include the 13 members of the Organization of the Petroleum Exporting Countries and non-OPEC producers like Russia, have been coordinating output cuts to stabilize the global oil market and address fluctuations in oil prices.

The most recent OPEC+ decision in December was to delay increasing oil output by three months, pushing the start of monthly production hikes to April.

This decision, which extended the full unwinding of cuts until the end of 2026, was made in response to continued weak demand and high levels of production outside the group.

As a result, OPEC+ plans to increase output gradually starting in April, while maintaining the flexibility to adjust these plans if market conditions change dramatically. The group’s broader strategy remains focused on long-term market stability and achieving a balanced supply-demand scenario that supports fair oil prices.

Moving forward, OPEC+ has continued to emphasize its commitment to energy cooperation with other regions and its role in ensuring market stability. However, the exact pace of future output increases and cuts will depend on both the global economic situation and developments in oil demand, including the transition toward renewable energy sources and geopolitical considerations.

Direct crude usage

Saudi Arabia’s direct crude oil burn — the use of crude oil in power generation — declined by 24,000 bpd in December, falling to 279,000 bpd, an 8 percent year-on-year drop and a notable 27 percent decrease from November.

The monthly decline in direct crude burn in the Kingdom can be attributed to colder weather conditions, which typically reduce the demand for energy-intensive heating during the colder months.

On a yearly basis, the decline can likely be linked to the more efficient use of energy across various sectors. This aligns with the Kingdom’s ongoing efforts to enhance energy efficiency, as highlighted during the February Egypt Energy Show in Cairo.

During the event, Saudi Energy Minister Prince Abdulaziz bin Salman reaffirmed the nation’s commitment to energy cooperation with Egypt.

As part of the partnership, Saudi firms will develop five solar and wind projects in Egypt, with a total capacity of 1.696 gigawatts and an investment of SR6.2 billion ($1.65 billion).

Additionally, ACWA Power signed a deal for a 2GW wind project in South Hurghada, valued at SR8.6 billion, making it Egypt’s largest wind energy initiative.

The Saudi-Egypt Electricity Interconnection Project, an SR6.7 billion investment enabling 3,000 MW of electricity exchange, was also highlighted as a key step in regional energy cooperation.

These projects, alongside regulatory development and capacity-building initiatives, contribute to the Kingdom’s broader efforts to promote a more sustainable and efficient energy model.