Qatar’s Estithmar Holding issues $137m sukuk, first in local currency
Qatar’s Estithmar Holding issues $137m sukuk, first in local currency/node/2569012/business-economy
Qatar’s Estithmar Holding issues $137m sukuk, first in local currency
The issuance is the inaugural tranche of its $137 million sukuk program, which is listed on the London Stock Exchange’s International Securities Market. Shutterstock
Qatar’s Estithmar Holding issues $137m sukuk, first in local currency
Issuance demonstrates company’s ability to diversify funding sources to support its long-term strategic growth plans and objectives
It has garnered significant interest from diverse investors
Updated 01 October 2024
MOHAMMED AL-KINANI
JEDDAH: Qatar-based Estithmar Holding has issued a 500 million Qatari riyal ($137 million) sukuk, marking the first corporate issuance denominated in local currency under its 3.4 billion-riyal program.
The issuance marks a significant milestone for the company, demonstrating its ability to diversify funding sources to support its long-term strategic growth plans and objectives, the company said in an announcement on the Qatar Stock Exchange.
Mohamad bin Badr Al-Sadah, the group CEO of the company, said: “The issuance of the first corporate Qatari-riyal-denominated sukuk is a historic milestone for Estithmar Holding.”
On being listed on the London Stock Exchange’s International Securities Market, he said this issuance has garnered significant interest from diverse investors.
.@EstithmarHLDG QPSC has revealed the successful issuance of a QAR 500 million #Sukuk, marking the first corporate Sukuk denominated in Qatari Riyal. This issuance represents the inaugural tranche of its QAR 3.4 billion Sukuk program, which is listed on the London Stock… pic.twitter.com/55J9KvUAoN
Operating with 28,000 employees from 91 nationalities, Estithmar Holding, one of the leading industrial pillars of Qatar’s economy, is a publicly listed Qatari company with a diverse portfolio of 66 businesses across four strategic sectors.
The three-year sukuk offers an 8.75 percent coupon and has drawn interest from institutional, governmental, and nongovernmental investors, including banks, insurance firms, and asset managers, with settlement expected in five days.
The sukuk program is rated qaBBB (stable) on the Qatar National Scale by credit analysis and ratings company Capital Intelligence.
Al-Rayan Investment LLC, The First Investor QSCC, and Lesha Bank LLC served as joint lead managers for the issuance.
Al-Sadah said the strong investor interest reflects confidence in their strategic growth across four key divisions, including healthcare, services, ventures, and specialized contracting.
The CEO added that his company’s healthcare sector has witnessed “remarkable” growth, highlighted by the affiliation of the Doha-based The View Hospital with Cedars Sinai Medical Center in California, and the opening of the Korean Medical Center in Lusail.
He further said Estithmar Holding is committed to “providing world-class health care services to Qatar and the region and contributing to medical tourism with regional expansion, through operating two hospitals in Iraq and the upcoming completion of the Algerian-Qatari-German Hospital in Algeria.”
Al-Sadah said that Estithmar Holding owns and operates facilities with a total capacity of over 2,000 beds, and growth in the services sector included facilities management, catering, and resource supply, both in Qatar and internationally.
“Our ventures sector is poised for significant success with major projects such as the Rosewood Resort in the Maldives and Rixos in Baghdad, both of which are expected to open in the near future, in addition to the continuous development of our current touristic ventures in Qatar; Al-Maha Island, Katara Hills, Maysan Doha, and others,” he added.
The senior executive said their specialized contracting sector is seeing significant growth, especially in Saudi Arabia, where they have notably increased market share through key strategic projects in the Kingdom.
Al-Sadah concluded that the sukuk program’s success reflected the culmination of their broader growth strategy, aimed at boosting investment value for shareholders and strengthening the firm’s leadership across all operating sectors.
Saudi firms announce 2024 financial results amid Eid trading break
Updated 31 sec ago
Miguel Hadchity
RIYADH: Multiple companies have released their financial results for 2024 despite the Saudi market remaining closed for trading due to the Eid Al-Fitr holiday, which lasts until April 2.
Red Sea International Co. reported a turnaround in profitability, announcing a net profit of SR4 million ($1.07 million), compared to a net loss of SR23.1 million in 2023.
In a statement on Tadawul, the organization attributed the improvement to the full-year impact of its First Fix acquisition, along with stronger revenues and performance. Operating profit surged to SR70 million from SR6 million in the previous year.
Raydan Food Co. posted a net loss of SR73.1 million in 2024, widening from SR30.8 million in 2023, a 136.6 percent increase.
The company attributed the losses to declining sales, lower revenues from contracts and franchises, higher selling and marketing expenses, and impairment costs related to right-of-use assets and land.
Foreign currency valuation adjustments and investment impairments also contributed to the decline. Sales fell 12.4 percent to SR155.3 million due to weaker branch performance and lower contract revenues.
Osool and Bakheet Investment Co. remained profitable despite a drop in net income. The firm’s profits dropped to SR19.8 million from SR25.4 million in 2023, largely due to a 24 percent fall in total revenues.
A 31 percent reduction in expenses and a 55 percent decrease in financing costs did help offset the impact. Other income surged 152 percent to SR4.2 million, though zakat expenses rose 58 percent to SR3.8 million.
Maharah Human Resources Co. reported a robust earnings gain, with net profits rising 27.1 percent to SR127.4 million, driven by an 18 percent revenue increase and a 6 percent improvement in gross profit, supported by corporate services sector growth.
The organization benefited from an SR20 million reduction in expected credit losses and an SR11 million boost in other operating income, mainly from increased government incentives for Saudi employment.
However, higher investments in human capital pushed general and administrative expenses up by SR3.5 million, while financing costs rose by SR4 million.
Additionally, profits from associate companies, including Care Shield Holding Co. and Saudi Medical Systems Co., fell 30 percent, amounting to an SR12.2 million decline, due to weaker results from Care Shield Holding Co. and the absence of Saudi Medical Systems Co.’s financial data for the last six months of 2024.
Oil Updates — crude extends climb on supply fears, trade war concerns cap gains
Updated 01 April 2025
Reuters
SINGAPORE: Oil prices inched higher on Tuesday after threats by US President Donald Trump to impose secondary tariffs on Russian crude and attack Iran, though worries about the impact of a trade war on global growth capped gains.
Brent futures rose 21 cents, or 0.3 percent, to $74.98 a barrel at 9:45 a.m. Saudi time, while US West Texas Intermediate crude futures climbed 22 cents, or 0.3 percent, to $71.70.
The contracts settled at five-week highs a day earlier.
“Near-term risks are skewed to the upside, with US threats of secondary tariffs on Russian and Iranian oil leading market participants to price for the risks of tighter oil supplies,” said Yeap Jun Rong, market strategist at IG.
However, broader themes still revolve around concerns of upcoming tariffs weighing on global demand, along with prospects of increased supply from OPEC+ and the US, said Yeap.
A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from US tariffs and economic slowdowns in India and China, while OPEC+ increases supply.
Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump’s threats.
After news of Trump’s threats initially boosted prices on Monday, traders told Reuters they viewed the president’s warnings to Russia, at least, as a bluff.
Trump, on Sunday, told NBC News that he was very angry with Russian President Vladimir Putin and would impose secondary tariffs of 25 percent to 50 percent on Russian oil buyers if Moscow tries to block efforts to end the war in Ukraine.
Tariffs on buyers of oil from Russia, the world’s second largest oil exporter, would disrupt global supply and hurt Moscow’s biggest customers, China and India.
Trump also threatened Iran with similar tariffs and bombings if Tehran did not reach an agreement with the White House over its nuclear program.
“For now, it appears to be just a threat to Russia and Iran. However, if it becomes a reality, it creates plenty of upside risk to the market given the significant oil export volumes from both countries,” said ING commodities strategists on Tuesday.
The market will be watching for weekly inventory data from US industry group the American Petroleum Institute later on Tuesday, ahead of official statistics from the Energy Information Administration on Wednesday.
Five analysts surveyed by Reuters estimated on average that US crude inventories fell by about 2.1 million barrels in the week to March 28.
Saudi real estate sector playing key role in GDP growth: Minister
Updated 31 March 2025
Miguel Hadchity
RIYADH: Saudi Arabia’s expanding real estate sector is contributing directly to the growth of the Kingdom’s gross domestic product, according to the minister of economy and planning.
Faisal Al-Ibrahim told Al-Arabiya Business that the Saudi government has created an enabling environment for the private sector, allowing it to focus on qualitative investment in real estate development.
Those remarks come amid a broader government effort to stabilize the real estate market in Riyadh. Over the weekend, Crown Prince Mohammed bin Salman announced a series of measures aimed at addressing rising land prices and rental costs, including lifting restrictions on land transactions and development in northern Riyadh.
The initiative, based on studies by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, seeks to increase housing accessibility, regulate market dynamics, and ensure sustainable growth in the sector.
In his remarks, Al-Ibrahim also highlighted the importance of cost regulation in supporting the private sector, enhancing market competitiveness, and driving sustainable economic growth.
Regarding upcoming policies and regulations, he said: “All legislative measures will be announced in due course, and their impact will be monitored in a structured and institutionalized manner to ensure they achieve the desired objectives.”
According to an analysis by real estate services firm JLL released at the end of March, the Saudi real estate sector is poised for further expansion, driven by Vision 2030’s economic diversification goals.
The firm said that the Kingdom’s non-oil sector is projected to grow by 5.8 percent in 2025, up from 4.5 percent in 2024.
The report highlighted Saudi Arabia’s strong construction activity, with project awards totaling $29.5 billion in 2024. A strong real estate market is critical for the Kingdom’s ambitions to position itself as a global hub for tourism and business.
The property market is projected to reach $101.62 billion by 2029, growing at an annual rate of 8 percent from 2024.
Despite global economic headwinds, JLL’s country head for Saudi Arabia, Saud Al-Sulaimani, emphasized that Vision 2030’s strategic diversification efforts are attracting both domestic and international capital.
Key sectors, particularly in Riyadh and Jeddah, are seeing sustained demand, with tourism and infrastructure initiatives further stimulating investment.
Stocks slide; bonds, gold buoyed as tariffs stoke recession fears
STOXX 600 falls 1.7 percent, US futures lower
Nikkei dives over 4 percent
Trump says US tariffs to cover all countries
Updated 31 March 2025
Reuters
LONDON: Major global share markets fell sharply on Monday and gold surged to another new record after US President Donald Trump said tariffs would essentially cover all countries, stoking worries a global trade war could lead to a recession.
Trump’s comments to reporters on Air Force One seemed to dash hopes the levies would be limited to a smaller group of countries with the biggest trade imbalances.
Trump is due to receive tariff recommendations on Tuesday and announce initial levels on Wednesday, followed by auto tariffs the day after.
“What the Trump administration has shown us so far is that you should not expect a consistent approach,” said George Lagarias, chief economist at Forvis Mazars.
“This is what scares the market the most. Inconsistency breeds uncertainty, and markets hate uncertainty.”
Europe’s STOXX 600 fell 1.7 percent to its lowest level in almost eight weeks, while major indexes in Frankfurt, London and Paris fell between 1.3 percent and 2 percent.
S&P 500 futures lost over 1 percent, extending losses after Friday’s 2 percent drop, while Nasdaq futures shed 1.5 percent.
Japan’s Nikkei led the rout in Asia, losing an eye-watering 4.1 percent and falling to a six-month low as automaker stocks continued to suffer fallout from Trump’s talk of 25 percent tariffs on imported cars.
MSCI’s broadest index of Asia-Pacific shares outside Japan shed 1.9 percent.
Seeking any safe harbor from the trade storm, investors piled into sovereign bonds and the Japanese yen and pushed gold prices to another all-time high.
“For the first time in years, we find ourselves genuinely worried about risk assets,” said Ajay Rajadhyaksha, head of rates markets at Barclays.
“If policy chaos and trade wars worsen much further, a recession is now a realistic risk across major economies,” he added. “For the first time in many quarters, we favor core fixed income over global equities.”
That “R” word
Many economists are worried that tariffs will hit the US economy hard, even as they limit the Federal Reserve’s scope to cut rates by driving inflation in the short term.
Analysts at Goldman Sachs now see a 35 percent chance of a US recession, up from 20 percent previously, saying they expect Trump to announce reciprocal tariffs that average 15 percent across all US trading partners on April 2.
Data out on Friday underlined the risks as a key measure of core inflation rose by more than expected in February while consumer spending disappointed.
That raised the stakes for the March payrolls report due on Friday where any outcome below the 140,000 gain expected would only add to recession fears. Also due are a rush of surveys on factories and services, along with figures on trade and job openings.
Bond investors seemed to be betting the slowdown in US economic growth will outweigh a temporary lift in inflation and prompt the Fed to cut rates by about 80 basis points this year.
This, combined with a flight from risk assets, saw the 10-year Treasury yield drop as low as 4.184 percent while the two-year yield hit 3.842 percent. Germany’s 10-year yield fell as low as 2.659 percent, its lowest since March 5.
The outlook for rates could become clearer when Fed Chair Jerome Powell speaks on Friday, following a host of other Fed speakers this week.
The drop in US yields saw the dollar ease 0.4 percent to 149.30 yen, while the euro held at $1.08. The dollar index was steady at 104.05, having slipped for the previous two sessions.
The perceived safety of gold saw the metal hit another all-time high at $3,128.06 an ounce.
Saudi Arabia’s consumer spending to stay resilient, experts say
Millennials and Gen Z consumers will continue driving demand for e-commerce and cross-border retail
Government spending and economic diversification are playing a vital role in stimulating consumer spending
Updated 31 March 2025
Nirmal Narayanan
RIYADH: Consumer spending in Saudi Arabia is expected to stay robust this year, driven by a youthful population and digitalization, according to multiple experts.
Speaking to Arab News, Sunil Kumar, CEO of supermarket chain Spinneys, said that consumer spending in the Kingdom is expected to witness a compound annual growth rate of 6.4 percent from 2022 to 2028, while UAE will see an expansion of 4.3 percent during the same period.
The views of Kumar align with the findings of a recent report published by global consulting firm AlixPartners which said Saudi Arabia’s consumer market is evolving rapidly, characterized by adaptability, shifting spending patterns, and resilience in the face of global economic challenges.
Spinneys’s CEO explained that as the Saudi and UAE economies continue to achieve growth, consumer confidence remains strong, fueling demand for premium products.
“Convenience is another important factor, with the accelerating penetration of aggregators, as well as proprietary e-commerce platforms like our own, making fresh, premium products quickly and easily accessible,” he said.
Spinneys opened its first Saudi store in June 2024, with 12 additional stores expected to open across the Kingdom by 2028. Spinneys
Factors driving consumer spending
Usman Iftikhar, principal in the retail and consumer goods practice for India, the Middle East, and Africa at Oliver Wyman, told Arab News that strategic government investments, digital advancements, and tourism initiatives are some of the major factors that are driving the growth of consumer spending in the Middle East and North Africa.
Iftikhar added that the MENA region now has a dynamic and evolving marketplace, fostering increased demand for a wide range of goods and services.
“The region has a young and growing population, which drives demand for goods and services, particularly in sectors such as education, technology, and entertainment. For example, in Saudi Arabia, one of the largest markets in the MENA region, more than 60 percent of the population is under the age of 30,” said Iftikhar.
He added: “Government spending and economic diversification play a vital role in stimulating consumer spending. Many countries in the region are investing in infrastructure, tourism, and non-oil sectors, boosting employment and consumer confidence.”
The Oliver Wyman official added that increased internet penetration and smartphone adoption are fueling e-commerce growth in the region, and is reshaping how consumers shop.
Jim Liu, general manager of AliExpress for the GCC region, shared identical views and told Arab News that consumer spending growth in the MENA region is fueled by rapid technological advancements, evolving consumer preferences, and a digitally native, mobile-first population.
“Structural reforms, increased investments in digital infrastructure, and the rise of payment solutions are further enhancing online retail accessibility,” said Liu.
Speaking to Arab News in February, Ali Bailoun, regional general manager of Visa, also highlighted how consumer retail spending in the Kingdom is expected to grow significantly in the coming years, with the share of e-commerce in the overall sector projected to reach 46 percent by 2030.
All these views align with Saudi Arabia’s ongoing transition toward a diversified, digitally-driven economy, with e-commerce playing a crucial role.
Sectors benefiting from increased consumer spending
Experts told Arab News that several sectors including electronics and gadgets, food and beverages, entertainment and leisure, and travel and tourism, will be the beneficiaries of increased consumer spending in Saudi Arabia and the wider Middle East region.
According to AlixPartners report, groceries and clothing categories are expected to dominate as key spending categories in 2025, with consumers prioritizing value-driven deals and savings.
Highlighting the growth of the entertainment sector in the Kingdom, the analysis added that 33 percent of Saudi consumers plan to increase spending on entertainment outside of the home, well above the 19 percent global average.
Usman Iftikhar, principal in the retail and consumer goods practice for India, the Middle East, and Africa at Oliver Wyman. Supplied
“Entertainment and leisure activities are seeing increased demand as disposable incomes rise. For instance, Saudi Arabia’s Vision 2030 aims to boost household spending on entertainment from 2.9 percent to 6 percent by 2030, reflecting a growing appetite for cinemas, theme parks, and recreational activities,” said Iftikhar.
He added: “The travel and tourism sector is rebounding, with hospitality and airlines benefiting from renewed consumer interest.”
Kumar said that sustained economic growth and rising disposable incomes in Saudi Arabia and the UAE are having a very positive impact on grocery shopping.
“The fresh food segment continues to see especially strong demand, driven by a growing consumer preference for high-quality, healthy and sustainably sourced products. At Spinneys, fresh food accounted for more than 63 percent of sales in 2024, with standout performances by product categories including fresh fruit, premium berries and organic products,” added Kumar.
Liu said that strong economic policies are elevating business confidence in the region, with consumer spending expected to increase significantly in tech gadgets.
“At AliExpress, we see this trend reflected in high demand for tech gadgets, fashion, household electronics, and lifestyle products — categories where consumers are prioritizing quality, affordability, and convenience,” added Liu.
The impact of inflation
According to Oliver Wyman’s Iftikhar, inflation and global economic uncertainty are significantly affecting purchasing behavior among consumers, creating a sense of cautious optimism regarding overall spending.
Citing a survey carried out by his firm, Iftikhar said that 31 percent of households in Saudi Arabia reported a drop in income during 2024, with 11 percent experiencing declines of more than 50 percent.
The findings revealed that to save money, many consumers are changing their shopping behaviors, with 48 percent of those surveyed reporting comparing prices, and 46 percent actively looking for stores that offer lower prices.
“Retailers must adapt to these shifting behaviors to meet the evolving needs of a consumer base increasingly focused on maximizing value,” he added.
Kumar of Spinneys shared a different view and noted that the company is not seeing a slowdown in spending in response to inflation, with consumers instead preferring high-quality products, especially in the food sector.
Liu also shared similar views and said: “At AliExpress, we are seeing sustained growth in the region as more consumers turn to our platform for high-quality products at affordable prices — items they would typically pay more for elsewhere. This shift highlights the increasing importance of affordability, promotions, and personalized shopping experiences in maintaining customer trust and loyalty.”
Consumer spending: The future outlook
Iftikhar also outlined several key trends that will reshape the consumer spending pattern in the Middle East region over the next few years, with a particular focus on the rise of artificial intelligence.
“AI revolution is gaining traction, with over 50 percent of customers in the GCC expressing excitement about the potential of generative AI to enhance their online and in-store experiences. Generative AI can significantly reshape the consumer experience by enabling companies to tailor products and offerings more effectively,” said Iftikhar.
He added that personalization is becoming a key differentiator in consumer expectations, with more than 60 percent of customers interested in tailored promotions and recommendations.
Liu said that the future of consumer spending in MENA will be shaped by digital-first retail strategies, economic diversification, and a mobile-driven shopping culture.
“The region is undergoing a payment revolution, with digital wallets and alternative payment methods like buy now, pay later gaining significant traction. Quick commerce is emerging as a significant sector, and this growth is driven by demand for rapid delivery across non-grocery categories like beauty, pharma, electronics, and fashion,” said Liu.
The AliExpress official added that millennials and Gen Z consumers, who expect seamless, tech-enabled shopping experiences, will continue driving demand for e-commerce and cross-border retail.
Focusing on the future of the retail food industry in the region, Kumar said that consumer spending in the GCC will be shaped by health, sustainability and convenience.
He added that the region is witnessing a rising demand for whole food sources, high-protein and nutrient-dense foods, as consumers become more conscious of the effects of processed eatables.
“Convenience remains at the forefront of consumer preference, with functional beverages and nutrient-dense snacks gaining traction. However, we expect this to evolve beyond speed and ease – with consumers now seeking hyper-personalized options that deliver on health, flavor and sustainability,” said Kumar.
