Qatar’s non-oil business growth steady in December; Lebanon’s PMI at 8-month high

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Updated 07 January 2025
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Qatar’s non-oil business growth steady in December; Lebanon’s PMI at 8-month high

  • Qatar’s labor market was a key driver of the country’s overall progress in business conditions
  • S&P Global added that activity levels across Lebanon’s private sector economy fell in December

RIYADH: The growth of non-oil business activities in Qatar was steady in December, with the country’s purchasing managers’ index remaining stable at 52.9, unchanged from November, an economy tracker showed. 

The latest report released by Qatar Financial Center and compiled by S&P Global said that the headline PMI figure for the fourth quarter of 2024 stood at 52.9, up from 52.0 in the previous three months and above the long-run survey average of 52.3 since April 2017.

According to the PMI survey, Qatar’s labor market was a key driver of the country’s overall progress in business conditions in December, with employment and wage increases reaching some of the highest levels on record. 

The strong growth in non-energy business activities aligns with the broader economic diversification efforts across Gulf Cooperation Council nations, which continue to reduce reliance on oil revenues.

Earlier this month, S&P Global revealed that Saudi Arabia’s December PMI hit 58.4, driven by a sharp increase in new orders. The Kingdom’s PMI has remained above the neutral 50 mark since September 2020, indicating substantial expansion in the non-oil private sector.

In the UAE and Qatar, the PMI for December stood at 55.4 and 54.1, respectively. 

“The headline PMI was unchanged at 52.9 in December, remaining above the long-run trend level of 52.3 and indicating a solid improvement in business conditions in the non-energy sector,” said Yousuf Mohamed Al-Jaida, CEO of QFC Authority. 

According to the report, employment and wages have risen more quickly in Qatar’s non-energy business sector than at any other time in survey history, which reflects efforts to raise output, improve services, win new business, and address outstanding workloads.

Even though wage pressures remained strong in December, overall input price inflation eased further from October’s four-year high. 

The survey added that Qatari firms continued to hold an optimistic outlook for the next 12 months in December, albeit slightly easing from November. 

According to the analysis, Qatar’s Financial Services Future Activity Index rose from 62.1 in November to 68.3 in December, well above the long-run series trend of 63.6.

“The outlook for 2025 is strongly positive, continuing to support a booming labor market. New business growth generated a renewed rise in outstanding work during December, and companies continued to build inventories in expectation of sales growth in the coming months,” added Al-Jaida. 

Business confidence in Lebanon rises

In a separate report released by BLOMINVEST Bank, compiled by S&P Global, the PMI of Lebanon hit an eight-month high in December, reaching 48.8, up from 48.1 in November. 

The survey revealed that companies recorded their most optimistic assessment of the 12-month outlook in December as the Israel-Hezbollah ceasefire buoyed sentiment. 

S&P Global added that activity levels across Lebanon’s private sector economy fell in December, although the pace of decline cooled to the softest seen since March. 

“The BLOM Lebanon PMI for December 2024 improved for the second month in a row from the 44-month low in October (45.0) to record 48.8, as slower declines in new orders and new export orders resulted in a softer output contraction,” said Helmi Mrad, research analyst at BLOMINVEST Bank. 

He added: “It is interesting to note that the surveyed companies were optimistic regarding the 12-month outlook, with the Future Output Index recording an all-time high of 61.8. This optimism is due to the ceasefire agreement between Hezbollah and Israel.” 

According to the survey, the decline in new export business also cooled sharply in December, with the contraction being the slowest in 10 months. This trend also signaled a marked easing of the contraction in international client demand for Lebanese products. 


Oil Update — crude gains as China opens door for trade talks with US

Updated 02 May 2025
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Oil Update — crude gains as China opens door for trade talks with US

NEW DELHI: Oil prices climbed on Friday after China said it was open for talks with the US on tariffs, raising hopes of a de-escalation in a bitter trade war between the world’s two largest economies.

Brent crude futures rose 49 cents, or 0.8 percent, to $62.62 a barrel by 7:46 a.m. Saudi time, while US West Texas Intermediate crude futures added 50 cents, or 0.8 percent, to $59.74 a barrel.

China’s Commerce Ministry said on Friday that Beijing is “evaluating” a proposal from Washington to hold talks aimed at addressing US President Donald Trump’s sweeping tariffs, signalling a possible easing of the trade tensions that have rattled global markets.

Concerns that the broader trade war could push the global economy into a recession and crimp oil demand, just as the OPEC+ group is preparing to raise output, have weighed heavily on oil prices in recent weeks.

“If Washington runs with it, as I expect it to, this could be a game-changer in the gloom-and-doom mood that has enveloped markets for weeks,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

“No one expects a smooth sailing for sure, but it’s an encouraging breakthrough in the impasse that has been weighing on markets,” Hari said.

Oil prices were also underpinned by a threat from Trump to impose secondary sanctions on buyers of Iranian oil.

Trump’s comments followed a postponement of US talks with Iran over its nuclear program. He had previously restored a “maximum pressure” campaign against Iran, which included efforts to drive the country’s oil exports to zero, to help prevent Tehran from developing a nuclear weapon.

Oil prices had gained late in Thursday’s session to settle nearly 2 percent higher on Trump’s remarks, erasing some of the losses recorded earlier in the week on expectations of more OPEC+ supply coming to the market.

Eight OPEC+ countries will meet on May 5 to decide a June output plan.

“With non-OPEC+ supply rising robustly and global demand growth facing structural decline, we see no natural re-entry point for these barrels and, ultimately, the group will likely have to endure some price pain no matter when it unwinds its cuts,” Fitch’s BMI research unit said in a note. 


Riyadh Air signs 11 deals to boost global reach and promote Saudi culture and hospitality

Updated 02 May 2025
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Riyadh Air signs 11 deals to boost global reach and promote Saudi culture and hospitality

  • The airline, which is preparing to begin operations, plans to connect with more than 100 cities by 2030 and contribute $20bn to the Kingdom’s economy between now and then
  • Senior VP Osamah Al-Nuaiser said the deals will help deliver exceptional travel experiences across Europe, Africa, the Middle East, Asia, Australia and New Zealand

JEDDAH: New Saudi airline Riyadh Air signed 11 strategic agreements this week it said will expand its global footprint, elevate the travel experience, and help promote the Kingdom’s culture and hospitality.

The deals, finalized during the Arabian Travel Market in Dubai, which began on Monday and concluded on Thursday, involve sales and distribution service providers in more than 125 countries.

Riyadh Air, which is owned by Saudi Arabia’s Public Investment Fund, aims to connect with more than 100 international cities by 2030, and contribute more than $20 billion to the Kingdom’s economy between now and then, the Saudi Press Agency reported on Thursday.

The airline said it plans to enhance the travel experience by leveraging digital technologies to streamline bookings and airport procedures, thereby catering to the country’s young, tech-savvy population, as previously highlighted by CEO Tony Douglas.

Osamah Al-Nuaiser, senior vice president of marketing and corporate communications at Riyadh Air, said the agreements signed this week reflect the airline’s commitment to becoming a global leader in aviation.

They are designed to build long-term, mutually beneficial relationships that help deliver exceptional travel experiences across Europe, Africa, the Middle East, Asia, Australia and New Zealand, he added.

As authorities in the Kingdom continue to invest billions into massive development projects as they work to diversify the national economy and reduce its reliance on hydrocarbons, one of their goals is to gain a larger share of the global travel market, including business travel.

Riyadh Air received approval from the Kingdom’s General Authority of Civil Aviation in April to begin flight operations. It was granted its Air Operator Certificate after fulfilling all regulatory, safety, and operational requirements, marking a key milestone in the run-up to the official launch of commercial flights.

Riyadh Air said the flexibility offered by the adoption of the most modern technologies, free from the constraints of legacy systems, will enable the airline to innovate with agility and offer seamless booking, distribution and other services across its global network.

Douglas said recently that the startup is ready to purchase Boeing aircraft originally ordered by Chinese airlines, should they become available as a result of the escalating US-China trade dispute.

The fledgling airline has also placed major orders of its own with manufacturers, including a deal in October last year for 60 narrow-body A321-family jets from Airbus, and another in March 2023 for up to 72 Boeing 787 Dreamliners.


PIF announces pricing of $1.25bn international sukuk offering

Updated 02 May 2025
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PIF announces pricing of $1.25bn international sukuk offering

  • The sukuk will be listed on the London Stock Exchange’s International Securities Market
  • PIF’s Ahmed Alrobayan said: ‘The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile’

RIYADH: The Public Investment Fund on Thursday announced the pricing of a $1.25 billion sukuk offering, with the proceeds of the dollar-denominated offering to be used for PIF’s general corporate purposes.
The seven-year sukuk was more than 6.5 times oversubscribed, with orders exceeding $9 billion, according to a media statement.
The sukuk will be listed on the London Stock Exchange’s International Securities Market as part of PIF’s international sukuk issuance program.
Ahmed Alrobayan, head of public markets, global capital finance, at PIF, said: “The strong investor demand for this new sukuk offering underscores PIF’s robust credit profile, along with its role as a key driver of Saudi Arabia’s economic transformation.”
The transaction represents a continuation of the established and diversified financing strategy, which draws strong support from international investors, Alrobayan said.
PIF’s long-term capital-raising strategy includes a diverse range of instruments, including sukuk and bond programs.
PIF has completed its inaugural murabaha credit facility since earlier this year, and last August renewed a revolving credit facility.
PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.


Qassim region sees 25% growth in business sector over 7 years: Ministry of Commerce

Updated 01 May 2025
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Qassim region sees 25% growth in business sector over 7 years: Ministry of Commerce

JEDDAH: Saudi Arabia’s Qassim region has experienced 25 percent growth in its business sector over the past seven years, reflecting increased economic activity and contributing to the Kingdom’s goal of balanced development.

The number of commercial records in the central region rose from 68,000 in 2018 to 85,000 by the end of the first quarter of this year, the Ministry of Commerce reported in a post on its official X account.

The latest figures showed that the Qassim region saw 1,342 e-commerce registrations, contributing to the overall 6 percent year-on-year increase in the sector.

The increase comes as the Kingdom pushes ahead with its economic diversification strategy, aiming to increase the private sector’s share of the gross domestic product from 40 percent to 65 percent by 2030.

This effort is reflected in a 60 percent increase in commercial registrations in 2024 across the Kingdom, with a total of 521,969 records issued, according to the Ministry of Commerce.

Business registrations continued to rise in early 2025, with 154,638 commercial records issued in the first quarter alone, representing a 48 percent year-on-year increase.

The ministry report highlighted “critical sectors” for the Kingdom include technology, tourism, and entertainment, as well as research and development.

The report added: “These sectors offer businesses significant opportunities to grow and expand partnerships.”

According to the Ministry of Commerce, a commercial registration certificate verifies a business’s official status within Saudi Arabia. These records are essential for operating in the Kingdom, as they are required to open a bank account, hire employees, sign contracts, and conduct other business activities.

The data also showed that 71 percent of the total commercial records issued were concentrated in three key regions: Riyadh, Makkah, and the Eastern Province.

This surge in registrations aligns with recent reforms to Saudi Arabia’s business registration system, including the introduction of the new Commercial Register Law and Trade Names Law.

Subsidiary registers have also been abolished, meaning that one commercial register now covers all businesses, and companies no longer need to specify the city of registration, as a single enrollment is now valid nationwide.

The bulletin also revealed that 45 percent of the total commercial records issued to institutions are owned by women.

In an interview with Arab News in April on the sidelines of the Human Capability Initiative held in the capital, Zeger Degraeve, dean of Prince Mohammed Bin Salman College of Business & Entrepreneurship, emphasized that ensuring balanced regional development is crucial as Saudi Arabia accelerates its economic diversification efforts under Vision 2030.

The rise in business registrations in Qassim is aligning with its growing industrial sector, supported by its rich mineral resources, which are a key focus of Saudi Arabia’s Vision 2030 diversification plan.

The region’s SR122 billion ($32.5 billion) in untapped mineral wealth, including significant deposits of gold, copper, zinc, and phosphate, contributes to the area’s industrial development, which has seen substantial growth.


Closing Bell: Saudi main index closes in red at 11,543  

Updated 01 May 2025
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Closing Bell: Saudi main index closes in red at 11,543  

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 127.90 points, or 1.10 percent, to close at 11,543.67.  

The total trading turnover of the benchmark index was SR5.09 billion ($1.35 billion), as 52 stocks advanced, while 193 retreated.  

The MSCI Tadawul Index decreased by 16.97 points, or 1.14 percent, to close at 1,471.91. 

The Kingdom’s parallel market Nomu also dipped, losing 147.4 points, or 0.52 percent, to close at 28,129.77. This came as 32 stocks rose, while 41 fell. 

The best-performing stock on the main index was Saudi Printing and Packaging Co., with its share price surging by 6.18 percent to SR13.06.  

Saudi Cement Co. saw the steepest decline on the main index in Thursday’s session, with its share price slipping 5.75 percent to SR43.40.  

In a bourse filing, Banque Saudi Fransi announced that it has completed its $650 million offering of US dollar-denominated Additional Tier 1 capital notes.  

The issuance, conducted under the bank’s Additional Tier 1 Capital Note Programme, was offered to eligible investors in Saudi Arabia and internationally, with settlement set for May 7.  

The notes were issued at a return of 6.375 percent per annum and are perpetual in nature, with a call option exercisable after six years. A total of 3,250 notes were issued, each with a par value of $200,000. 

According to the bank, the instruments may be redeemed prior to the scheduled call date under certain conditions outlined in the base offering circular.  

The notes will be listed on the International Securities Market of the London Stock Exchange and were offered in reliance on Regulation S under the US Securities Act of 1933, as amended. 

The bank’s share price traded 0.54 percent lower on the main market to reach SR18.30.

Halwani Bros. Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR11.51 million, a 4.58 percent decline compared to the previous quarter last year.  

The company attributed the decrease to higher general and administrative expenses, as well as increased selling and distribution costs. It also said that this was due to an increase in other income as a result of the reversal of provisions that are no longer needed.  

Halwani Bros. Co’s share price traded 0.52 percent lower on the main market to reach SR47.95.  

In the first quarter of 2025, Fourth Milling Co’s net profit rose 25.154 percent quarter on quarter to SR52.6 million, according to a filing on the stock exchange.  

The group attributed the increase to sales growing by 2 percent, amounting to an increase of SR3.4 million, and zakat and tax payments decreasing by SR1.4 million.  

The company’s share price traded 0.25 percent lower on the main market to reach SR3.97.  

Saudi Steel Pipe Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR69 million, an 81.57 percent surge compared to the previous quarter.  

The company attributed the increase to higher volume, improved efficiency and product mix of products sold, and administrative expenses decreased to SR14 million in the first quarter 2025 from SR19 million in the fourth 2024. 

The company’s share price traded 0.18 percent higher on the main market to reach SR56.10.