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  • Oil Updates – prices on track for 4th straight week of gains


Oil Updates – prices on track for 4th straight week of gains

Brent crude futures slipped 2 cents to $87.41 a barrel by 3:43 a.m. Saudi time. Shutterstock
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Updated 05 July 2024
Reuters
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Oil Updates – prices on track for 4th straight week of gains

Updated 05 July 2024
Reuters

SINGAPORE: Oil prices were little changed in Asian trade on Friday but were on track for a fourth straight week of gains and holding near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns, according to Reuters.

Brent crude futures, which have risen 7 percent over the last four weeks, slipped 2 cents to $87.41 a barrel by 3:43 a.m. Saudi time.

US West Texas Intermediate crude futures, which have climbed 9 percent over the past four weeks, inched up to $83.97, up 9 cents from Wednesday’s close. With the US market shut for the Fourth of July holiday on Thursday, trading was thinned and there was no settlement for WTI.

Oil rose this week on strong summer demand expectations in the US, the world’s largest oil consumer.

“Market sentiment has been supported this week by strong mobility indicators and intensifying geopolitical tension in the Middle East,” analysts at ANZ Research said in a note on Friday.

The US Energy Information Administration reported a massive 12.2 million barrels draw in inventories last week, compared with analysts’ expectations for a draw of 700,000 barrels.

US data on Wednesday showed that first-time applications for US unemployment benefits increased last week while jobless numbers also rose, which analysts said could potentially hasten interest rate cuts by the US Federal Reserves and support oil markets.

On the supply side, Reuters reported on Thursday that Russia’s oil producers Rosneft and Lukoil will sharply cut oil exports from the Black Sea port of Novorossiisk in July.

Meanwhile, Saudi Arabia’s Saudi Aramco cut the price for the flagship Arab Light crude it will sell to Asia in August to $1.80 a barrel above the Oman/Dubai average, underscoring pressure faced by OPEC producers as non-OPEC supply grows.

Traders were also tracking the war in Gaza and elections in France and the United Kingdom, analysts said. 

Topics: Oil Updates  oil prices main crude oil

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Global production of sustainable aviation fuel projected to reach 2m tonnes in 2025

Updated 6 sec ago
Nirmal Narayanan
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Global production of sustainable aviation fuel projected to reach 2m tonnes in 2025

Updated 6 sec ago
Nirmal Narayanan

RIYADH: Global sustainable aviation fuel production is expected to double to reach 2 million tonnes in 2025 compared to the previous year, according to the International Air Transport Association. 

In a press statement issued during IATA’s Annual General Meeting, Director General Willie Walsh noted that the projected 2 million tonnes of SAF will account for just 0.7 percent of total fuel consumption this year.

The use of SAF has been increasingly prominent in recent years, as most countries have set stipulated targets to achieve net zero as part of their energy transition efforts. 

“While it is encouraging that SAF production is expected to double to 2 million tonnes in 2025, that is just 0.7 percent of aviation’s total fuel needs,” said Walsh. 

He added: “And even that relatively small amount will add $4.4 billion globally to the fuel bill. The pace of progress in ramping up production and gaining efficiencies to reduce costs must accelerate.” 

The IATA official further stated that sufficient government measures, including the implementation of effective policies, are needed to meet decarbonization efforts. 

He added that ensuring the success of Carbon Offsetting and Reduction Scheme for International Aviation is crucial to offsetting carbon emissions in the aviation sector. 

Under CORSIA, an initiative launched by the International Civil Aviation Organization, airplane operators must purchase and cancel “emissions units” to offset the increase in CO2 emissions. 

“Advancing SAF production requires an increase in renewable energy production from which SAF is derived. Secondly, it also requires policies to ensure SAF is allocated an appropriate portion of renewable energy production,” said IATA in the statement. 

In a separate statement, IATA said that $1.3 billion in airline funds are blocked from repatriation by governments as of the end of April.

The industry body, however, noted that this figure also represents a 25 percent improvement compared to the $1.7 billion reported for October. 

The aviation body also urged governments to remove all barriers preventing airlines from the timely repatriation of their revenues from ticket sales and other activities in accordance with international agreements and treaty obligations.

“Ensuring the timely repatriation of revenues is vital for airlines to cover dollar-denominated expenses and maintain their operations. Delays and denials violate bilateral agreements and increase exchange rate risks,” said Walsh. 

He added: “Economies and jobs rely on international connectivity. Governments must realize that it is a challenge for airlines to maintain connectivity when revenue repatriation is denied or delayed.” 

Topics: IATA ICAO SAF aviation

Closing Bell: Saudi main index closes in red at 10,825 

Updated 24 min 5 sec ago
Miguel Hadchity
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Closing Bell: Saudi main index closes in red at 10,825 

Updated 24 min 5 sec ago
Miguel Hadchity

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Sunday, losing 165.14 points, or 1.50 percent, to close at 10,825.27. 
  
The total trading turnover of the benchmark index was SR4.27 billion ($1.13 billion), as 31 of the listed stocks advanced, while 215 retreated. 
  
The MSCI Tadawul Index decreased by 21.69 points, or 1.55 percent, to close at 1,382.11. 
  
The Kingdom’s parallel market Nomu dipped, losing 140.52 points, or 0.52 percent, to close at 26,669.23. This comes as 20 of the listed stocks advanced while 61 retreated. 

The best-performing stock was Emaar The Economic City, with its share price surging 3.91 percent to SR13.28. 

Other top performers included Sinad Holding Co., which saw its share price rise by 2.56 percent to SR10.42, and Alkhaleej Training and Education Co., which saw a 2.22 percent increase to SR25.35. 
  
The shares of Al Yamamah Steel Industries Co. and Morabaha Marina Financing Co. also rose by 2.19 percent and 1.85 percent to SR30.30 and SR11, respectively. 
 
On the downside, United Carton Industries Co. was the day’s weakest performer, with its share price declining 9.31 percent to SR40.90. 
   
Raydan Food Co. and Makkah Construction and Development Co. also saw declines, with their shares dropping by 8.04 percent and 7.02 percent to SR13.50 and SR90, respectively. 
  
Moreover, the shares of Gulf Insurance Group and Saudi Fisheries Co. dipped by 6.54 percent and 5.94 percent to SR24.02 and SR95, respectively. 
  
On the parallel market, Digital Research Co. led the gains, with its share price rising 13.02 percent to SR59.90. 
  
Future Care Trading Co. and Saudi Parts Center Co. also saw a positive change, with their shares increasing by 9.32 percent and 7.14 percent to SR3.52 and SR45, respectively. 
  
Conversely, Amwaj International Co. was the weakest performer on Nomu, with its share price falling 9.78 percent to close at SR36.90. 
  
Fad International Co. and Dar Almarkabah for Renting Cars Co. followed with decreases of 9.42 percent and 9.26 percent to SR76 and SR2.45, respectively. 

Topics: TASI Tadawul shares stocks

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Madinah leads regional growth with 24% construction employment in Q1 

Updated 01 June 2025
Miguel Hadchity
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Madinah leads regional growth with 24% construction employment in Q1 

  • Construction continued to dominate amid a surge in infrastructure projects
  • Wholesale, retail trade, and vehicle maintenance sector accounted for 20% of workforce
Updated 01 June 2025
Miguel Hadchity

RIYADH: Saudi Arabia’s Madinah region recorded strong first quarter growth in 2025, led by 24 percent workforce participation in construction and 20 percent in trade, signaling diversification momentum. 

A recent report by the Madinah Chamber of Commerce outlines the region’s sectoral distribution, with construction continuing to dominate amid a surge in infrastructure projects, the Saudi Press Agency reported.  

The wholesale, retail trade, and vehicle maintenance sector, which accounted for 20 percent of the workforce, continued to thrive, demonstrating strong commercial activity and consumer demand. This segment’s high employment rate underscores Madinah’s role as a regional trading hub.   

The manufacturing sector, representing 12 percent of the workforce, showed growth that indicates the emergence of a stronger industrial base, contributing to economic diversification and reducing reliance on oil-related industries.     

Tourism, with an 11.2 percent workforce share, remained a key sector for Madinah as a destination for religious tourism, benefiting from a steady influx of pilgrims. The sector’s workforce expansion aligns with increased investment in hospitality, transportation, and tourism-related services, the SPA report added.  

The chairman of the chamber, Mazen bin Ibrahim Rajab, emphasized the focus on improving the business environment by leveraging Madinah’s economic strengths and investment opportunities.   

The report situated Madinah’s growth within broader economic trends. In 2024, the worldwide economic growth reached 3.2 percent, supported by a rebound in foreign direct investment, while inflation declined to 4.5 percent, signaling improving economic stability.     

The Kingdom’s gross domestic product grew by 4.4 percent in 2024, with non-oil sectors expanding by 5.9 percent. Madinah contributed significantly to this trend, recording a 2.8 percent increase in its GDP, reaching SR57.6 billion ($15.3 billion) in the third quarter of 2024.     

The report showed that Madinah recorded the second-highest domestic demand growth in Saudi Arabia at 11 percent, trailing only Riyadh.    

Additionally, foreign direct investment in the Kingdom surged by 36.6 percent in the third quarter 2024, reaching SR16 billion, with Madinah attracting a notable share due to its expanding industrial and commercial opportunities.   

The report also highlighted Madinah’s booming real estate and infrastructure sectors with property transactions in 2024 totaling SR10 billion, reflecting strong investor confidence.    

The job market improved significantly, with unemployment dropping from 10.3 percent in the third quarter of 2024 to 8.4 percent in the following three-month period, thanks to new employment opportunities across key sectors.     

A total of 213 development projects, valued at over SR210 billion, are currently in progress, according to the report. These include 153 commercial projects, 27 mixed-use residential and commercial developments and other projects in healthcare, education, tourism, and religious infrastructure.   

These initiatives are expected to generate more than 119,000 jobs, further boosting Madinah’s economic prospects. 

Topics: construction boom Q1 Employment

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Saudi Arabia opens June round of Sah savings sukuk with 4.76% return  

Updated 01 June 2025
Nour El-Shaeri
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Saudi Arabia opens June round of Sah savings sukuk with 4.76% return  

  • Sah is Kingdom’s first savings-focused sukuk designed for individual investors
  • Bonds structured for one-year term with fixed returns, profits to be paid at maturity
Updated 01 June 2025
Nour El-Shaeri

RIYADH: Saudi Arabia has opened the June subscription window for its savings sukuk product “Sah,” offering a return rate of 4.76 percent, as part of its 2025 issuance calendar.    

Organized by the National Debt Management Center under the Ministry of Finance, Sah is the Kingdom’s first savings-focused sukuk designed for individual investors.    

The Shariah-compliant, riyal-denominated product is part of the local bonds program aimed at fostering financial inclusion and increasing personal savings.    

The June issuance opened for subscription from 10 a.m. on Sunday, June 1, until 3 p.m. on Tuesday, June 3.    

The bonds are structured for a one-year term with fixed returns, and profits will be paid at maturity.    

The minimum subscription is set at one bond with a value of SR1,000 ($266.56), while the maximum subscription per investor is capped at SR200,000.    

The product aligns with the Financial Sector Development Program under Saudi Vision 2030, which targets raising the national savings rate from 6 percent to 10 percent by 2030.    

The June issuance of Sah offers a slightly higher return compared to May, rising to 4.76 percent from the previous month’s 4.66 percent, reflecting marginal shifts in market conditions.    

While both issuances maintain the same structure — Shariah-compliant, riyal-denominated sukuk with a one-year maturity and fixed returns — the June window opened slightly earlier in the month, running from June 1 to June 3, compared to May’s window from May 4 to May 6.   

Subscription terms remain unchanged, with a minimum investment of SR1,000 and a cap of SR200,000 per individual.    

Both offerings are accessible through the same network of approved financial institutions.   

Sah is promoted as a secure, fee-free savings instrument offering stable, government-backed returns.    

Eligible investors must be Saudi nationals aged 18 and above and must subscribe through approved platforms provided by SNB Capital, Aljazira Capital, and Alinma Investment, as well as SAB Invest, or Al-Rajhi Capital.    

The sukuk is issued monthly, and the return rate for each tranche is determined based on prevailing market conditions.   

NDMC CEO Hani Al-Medaini said in March that the sukuk serves as a catalyst for private sector cooperation and participation in developing and launching various savings products tailored to diverse demographics.    

These initiatives could involve partnerships with banks, fund managers, financial technology companies, and more. 

Topics: sah Sukuk bonds

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Oman’s banking sector credit rises 9% to $87.3bn 

Updated 01 June 2025
Nour El-Shaeri
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Oman’s banking sector credit rises 9% to $87.3bn 

  • Private sector credit rose by 7% to 27.8 billion rials
  • Islamic banks also demonstrated strong performance
Updated 01 June 2025
Nour El-Shaeri

RIYADH: Total outstanding credit extended by Oman’s banking sector, comprising both conventional and Islamic institutions, rose by 9 percent year-on-year to 33.6 billion Omani rials ($87.3 billion) at the end of April, according to new data.

According to the Central Bank of Oman, private sector credit rose by 7 percent to 27.8 billion rials. Non-financial corporations held the largest share at 46.6 percent, followed closely by the household sector at 44 percent.

Financial corporations held 5.6 percent, while other sectors represented the remaining 3.7 percent. 

Deposits across the banking system also showed robust growth. “Total deposits held with ODCs (other depository corporations) registered a YoY significant growth of 9.3 percent to reach 32.8 billion Omani rials at the end of April 2025,” the report stated. 

Of this, private sector deposits reached 21.5 billion rials, a 7.1 percent increase from the previous year. 

Household deposits contributed the largest share at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 17 percent, and other sectors at 2.3 percent. 

Credit extended by conventional banks grew by 7.9 percent to 21.3 billion rials, while their aggregate deposits increased by 6.1 percent to 25.7 billion rials. 

The banking sectors across the Gulf Cooperation Council countries have demonstrated credit growth, reflecting the region’s economic resilience and strategic investments. 

In Saudi Arabia, outstanding credit facilities reached SR2.96 trillion by the end of the fourth quarter of 2024, marking a 14.4 percent year-on-year increase. 

However, Qatar’s banking sector saw a slight contraction, with total credit facilities declining by 0.2 percent to 1.4 trillion Qatari riyals, primarily due to reduced lending to the public sector and consumption.

Oman’s private sector deposits with conventional banks rose 4.5 percent to 16.8 billion rials in April. 

Investments in government development bonds increased by 6.2 percent to 2 billion rials, whereas holdings in foreign securities declined by 3.7 percent to 2.1 billion rials. 

Islamic banks and windows also demonstrated strong performance. Their total assets increased by 18.1 percent to 8.9 billion rials, accounting for 19.6 percent of the total banking assets. 

Financing provided by these entities reached 7.2 billion rials, marking a 13.5 percent annual increase. Total deposits held by Islamic banks and windows increased by 22.6 percent to 7.1 billion rials. 

Broad money supply grew 7.5 percent to 25.4 billion rials, driven by a 12 percent rise in narrow money and a 6 percent increase in quasi-money components. 

Currency held by the public rose by 7.5 percent, while demand deposits expanded by 16.8 percent. 

Interest rate trends showed mixed movements. The weighted average interest rate on deposits with conventional banks rose to 2.594 percent in April, up from 2.580 percent a year earlier. 

Meanwhile, the weighted average lending rate fell to 5.555 percent from 5.604 percent. 

The overnight domestic interbank lending rate dropped to 4.392 percent, down from 5.212 percent the previous year, reflecting a decrease in the central bank’s repo rate to 5 percent in line with US monetary policy trends. 

Oman’s nominal gross domestic product increased by 1 percent year on year in the fourth quarter of 2024, driven by a 4.1 percent expansion in the non-hydrocarbon sector. 

Real GDP rose by 1.7 percent, supported by 3.9 percent growth in non-hydrocarbon activities. 

The average oil price stood at $75.9 per barrel at the end of April, 5.2 percent lower than a year earlier. 

Average daily oil production was 986,700 barrels, reflecting a 1 percent decline. Consumer price inflation remained subdued at 0.9 percent year on year as of April. 

Topics: Oman banking

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