India In-Focus — LIC to go ahead with IPO listing; ONGC struggling to move Russian oil

India expects to raise up to $2.74 billion from selling a 3.5 percent stake in LIC’s IPO. (AFP)
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Updated 27 April 2022
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India In-Focus — LIC to go ahead with IPO listing; ONGC struggling to move Russian oil

MUMBAI: India has decided to go ahead with state-run Life Insurance Corp’s initial public offering in May, due to strong market demand and a “solid” anchor investor base, a top finance ministry official said on Wednesday.

India expects to raise up to $2.74 billion from selling a 3.5 percent stake in LIC’s IPO, just a third of its original target, and is set to open on May 2 for anchor investors.

Tuhin Kanta Pandey, secretary at the department of investment and public asset management, said the size of the LIC IPO is “optimal” in current market conditions. The government had originally planned to sell a 5 percent stake in the company.

Tata’s Air India proposes to buy AirAsia India




Tata Sons has an 83.67 percent stake in AirAsia India. (AFP)

Tata Group-owned Air India has proposed to buy the entire equity share capital of low-cost carrier AirAsia India, in which Tata has a majority stake, to merge into a single airline, according to an application with India’s competition commission.

The autos-to-steel conglomerate bought state-run carrier Air India in a $2.4 billion equity-and-debt deal, regaining ownership of what used to be India’s flagship carrier after nearly 70 years.

Tata Sons has an 83.67 percent stake in AirAsia India.

“This was expected, as it makes no sense for the Tata Group to own stakes in separate airlines,” said Vinamra Longani, head of operations at Sarin & Co, a law firm specializing in aircraft leasing and finance.

“The Tata Group has embarked on what will go down in history as possibly one of the most challenging airline realignments or turnarounds.”

While Air India has lucrative landing slots, Tata faces an uphill task to upgrade the airline’s aging fleet and turn around its financials and service levels.

France’s Atos moves Russian services to India and Turkey

Atos is moving services currently delivered from Russia to other countries, including India and Turkey, the French IT consulting group said on Wednesday in light of the conflict in Ukraine.

The feasibility of exiting Russia has required significant planning in terms of implications for business operations and employees based there, the company said in an earnings statement.

ONGC struggling to move Russian oil to Asia as sanctions bite




ONGC has a 20 percent stake in the Sakhalin 1 project. (AFP)

India’s Oil and Natural Gas Corp., also known as ONGC, is struggling to find a vessel to ship 700,000 barrels of crude from Russia’s Far East, in a growing sign that complex trades involving one of Moscow’s biggest partners are being interrupted by Western sanctions, sources said.

Several Indian companies including ONGC have stakes in Russian oil and gas assets, and India has been buying more Russian crude since Moscow invaded Ukraine, snapping up the popular Urals crude grade, while other buyers have shunned Russian exports.

ONGC has a 20 percent stake in the Sakhalin 1 project that produces a Russian grade known as Sokol, which ONGC exports through tenders. Sokol is mostly bought by North Asian buyers and loaded from South Korea.

However, Moscow’s ability to ship that grade, which requires vessels that can break through ice, is becoming harder due to concerns from shippers over reputational risk, and the increasing difficulty for Russian assets to find insurance coverage.

Shipping companies are also less willing to move Russian oil in Asia, fearing the potential reputational risks involved with charters, the shipping sources added.

(With inputs from Reuters) 


Saudi non-oil exports climb sharply, with UAE, Asian markets in lead

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Saudi non-oil exports climb sharply, with UAE, Asian markets in lead

RIYADH: The UAE emerged as the leading destination for Saudi Arabia’s non-oil exports during the first quarter of 2025, with shipments valued at SR21.32 billion ($5.68 billion), marking a 33.91 percent increase compared to the same period last year, according to the latest data from the General Authority for Statistics.

Machinery and mechanical appliances were the most exported items to the UAE, amounting to SR10.19 billion. This was followed by transport equipment worth SR5.16 billion and chemical products totaling SR1.11 billion.

Plastic goods were also significant, with exports to the UAE reaching SR942 million, while precious stones and base metals recorded SR860.8 million and SR848.4 million, respectively.

The increase in non-oil exports aligns with the objectives of the Kingdom’s Vision 2030, which seeks to diversify the economy and reduce dependency on oil revenues. Saudi Minister of Economy and Planning Faisal Alibrahim recently noted that non-oil activities now contribute 53.2 percent to the Kingdom’s gross domestic product.

GASTAT also reported a 9.27 percent rise in Saudi Arabia’s non-oil exports to the UAE compared to the previous quarter, further emphasizing the Kingdom’s economic diversification momentum.

China ranked second among Saudi Arabia’s non-oil export destinations in the first quarter, receiving goods valued at SR6.51 billion — an annual increase of 17.93 percent. Major exports to the Asian country included plastic products worth SR2.58 billion, chemical products totaling SR2.32 billion, and minerals valued at SR533.4 million.

India was another prominent trade partner, with non-oil exports reaching SR5.75 billion in the first quarter, up 14.08 percent from the same period in 2024.

Other key export destinations included Turkiye, which received goods worth SR2.96 billion; Egypt at SR2.56 billion; and the US at SR2.48 billion.

Singapore imported SR2.28 billion worth of goods from Saudi Arabia, while Bahrain received SR2.21 billion, Belgium SR2.11 billion, and Kuwait SR1.97 billion.

Overall, Saudi Arabia’s non-oil exports rose by 13.4 percent year on year in the first quarter, totaling SR80.72 billion.

Key ports played a vital role in this trade activity. King Fahad Industrial Sea Port in Jubail handled the highest volume of outbound non-oil goods, valued at SR9.93 billion. Jeddah Islamic Sea Port followed closely with SR9.76 billion, while Jubail Sea Port and King Abdulaziz Sea Port in Dammam facilitated exports worth SR7.17 billion and SR6.69 billion, respectively.

On land, Al-Batha Port processed SR5.53 billion in exports. Al-Hadithah and Al-Wadiah ports recorded export values of SR2.10 billion and SR1.43 billion, respectively.

Among airports, King Khalid International Airport in Riyadh led with SR8.52 billion worth of non-oil goods exported in the first quarter, an increase of 12.84 percent compared to the previous year.

King Abdulaziz International Airport followed with SR6.16 billion, while King Fahad International Airport in Dammam and Prince Mohammad bin Abdulaziz International Airport in Madinah recorded SR741.8 million and SR4.2 million, respectively.

King Khalid International Airport in Riyadh. Shutterstock

Merchandise exports 

Despite growth in the non-oil sector, overall merchandise exports declined by 3.2 percent year on year in the first quarter, falling to SR285.78 billion. GASTAT attributed this drop to an 8.4 percent decline in oil exports, which caused the share of oil in total exports to decrease from 75.9 percent in the first quarter of 2024 to 71.8 percent in the same period this year.

Asia remained the largest market for Saudi exports, accounting for SR213.14 billion. Europe followed at SR34.51 billion, with Africa and the Americas receiving SR23.19 billion and SR13.80 billion, respectively.

China was the top destination for overall merchandise exports, receiving SR44.91 billion worth of goods — an increase of 3.26 percent compared to the first quarter of 2024. India received SR28.04 billion in goods, followed by Japan with SR26.48 billion, South Korea at SR25.03 billion, and the UAE at SR24.85 billion.

Imports in Q1

Saudi Arabia’s imports also grew during the first quarter, rising by 7.3 percent year on year to SR222.73 billion.

Machinery, mechanical and electrical equipment led imports, totaling SR57.40 billion, followed by transport parts at SR32.56 billion and base metals at SR21.30 billion. Chemical imports stood at SR19.60 billion, while minerals accounted for SR12.12 billion.

Goods imported from Asia were valued at SR128.50 billion, while imports from Europe and the Americas reached SR52.94 billion and SR27.01 billion, respectively. African nations contributed SR12.53 billion in imports, and goods from Oceania were valued at SR1.73 billion.

China remained Saudi Arabia’s largest source of imports, sending goods worth SR59.33 billion.

These included mechanical appliances and electrical equipment valued at SR23.93 billion, transport parts worth SR9.50 billion, base metals at SR6.43 billion, and even works of art and antiques amounting to SR3.19 billion. The US followed with SR17.58 billion in exports to the Kingdom, while India’s exports totaled SR12.27 billion.

Sea routes were the dominant entry channels for imports, accounting for SR113.11 billion. Air and land ports handled SR61.63 billion and SR25.99 billion, respectively. King Abdulaziz Sea Port in Dammam was the leading sea entry point with SR59.97 billion in imports. Jeddah Islamic Sea Port and Ras Tanura port followed with SR47.78 billion and SR8.73 billion.

Over land, Al-Batha Port and Riyadh Dry Port managed goods worth SR10.78 billion and SR8.29 billion, respectively. By air, King Khalid International Airport in Riyadh received imports valued at SR29.96 billion in the first quarter. King Abdulaziz International Airport and King Fahad International Airport handled SR18.60 billion and SR12.39 billion, respectively.

Reflecting continued expansion of the non-oil economy, Saudi Arabia recorded a Purchasing Managers’ Index of 55.6 in April, according to S&P Global and Riyad Bank. This score surpassed those of the UAE at 54 and Kuwait at 54.2, indicating robust growth in non-oil business activity. A PMI reading above 50 signals economic expansion, while a figure below 50 suggests contraction.


Oil Updates — crude set for 2nd weekly decline as market eyes another OPEC+ output hike

Updated 30 May 2025
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Oil Updates — crude set for 2nd weekly decline as market eyes another OPEC+ output hike

BEIJING/SINGAPORE: Oil prices were on track for a second consecutive weekly decline on Friday, weighed down by expectations of another OPEC+ output hike in July and fresh uncertainty after the latest legal twist kept US President Donald Trump’s tariffs in place.

Brent crude futures slipped 31 cents, or 0.48 percent, to $63.84 a barrel by 7:24 a.m. Saudi time. US West Texas Intermediate crude fell 31 cents, or 0.51 percent, to $60.63 a barrel.

The Brent July futures contract is due to expire on Friday.

Both contracts have fallen 1.5 percent so far this week.

The downward trajectory largely stemmed from the prospect of rising supplies as investors priced in another hike by the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, when eight of its members meet on Saturday.

“The stage is set for another bumper production increase,” Westpac’s head of commodity and carbon research Robert Rennie said in a note, potentially higher than the 411,000 barrels per day hike decided on at the previous two meetings.

The potential hike comes as the global surplus has widened to 2.2 million barrels per day, likely necessitating a price adjustment to prompt a supply-side response and restore balance, said JPMorgan analysts in a note.

They expect prices to remain within current ranges before easing into the high $50s by year-end.

In the US, Trump’s tariffs were to remain in effect after a federal appeals court temporarily reinstated them on Thursday, reversing a trade court’s decision on Wednesday to put an immediate block on the most sweeping of the duties.

The block had sent oil prices falling more than 1 percent on Thursday as traders weighed its effects. Analysts said uncertainty would remain as the tariff battles worked their way.

Oil prices have lost more than 10 percent since Trump announced his “Liberation Day” tariffs on April 2.

On the demand front, recession worries fueled by the tariff war have clouded the outlook. Adding to US-China trade tension, Washington ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a license and revoked licenses already granted to certain suppliers.

Global oil demand improved from the previous week, driven by a rebound in US oil consumption with robust travel over the Memorial Day long weekend, JPMorgan analysts noted.

That said, the monthly expansion in global oil demand is tracking at approximately 400,000 bpd as of May 28, 250,000 bpd below expectations, they said. 


Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says 

Updated 29 May 2025
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Saudi Aramco to tap bond market amid low gearing at around 5%, CEO says 

  • Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5%
  • He reaffirmed the company’s commitment to maintaining high dividends

RIYADH: Saudi Aramco will continue tapping bond markets in the future despite maintaining one of the lowest gearing ratios in the energy industry, according to a top official. 

In an interview with Bloomberg, Aramco President and CEO Amin Nasser said the oil giant’s gearing ratio, a financial metric that compares a company’s debt to its equity, is currently around 5 percent. That’s significantly lower than the industry average, where many peers operate with levels between 15 and 20 percent.

“Our gearing today is around 5 percent — still one of the lowest gearing, you know. It’s almost half of the average compared to other energy industry players in the market, and we will continue to tap into that additional bond markets in the future,” Nasser said. 

He continued: “But we have a low gearing ratio, which still, as you consider it, is very low compared to any players in the markets.” 

The low gearing ratio, which reflects strong financial discipline and limited reliance on debt, is part of what enables Aramco to maintain stability amid market fluctuations. 

Gearing is commonly used by analysts and investors to assess a company’s financial leverage, with lower ratios often indicating a stronger balance sheet and reduced financial risk. 

In the interview, Nasser also reaffirmed the company’s commitment to maintaining high dividends. “We have a strong balance sheet, and our dividend is one of the highest, the highest globally. We’re expecting to pay dividends that go to the majority shareholder and other shareholders, which is the government, of $85.4 billion this year.” 

He said the company benefits from having spare capacity, which allows it to bring more barrels to the market. “For every million barrels, that will have a huge impact on our net income. I would say it will give you a $10 cushion for every million barrels that you put into the market.”   

Nasser added: “We have today close to 3 million barrels of spare capacity, so other companies do not have that to cushion any drop in prices. For us, we do have that spare capacity that is healthy, strong, and when you put it, it allows you to increase significantly your net income.” 

He emphasized the company’s ability to withstand lower oil prices due to its operational efficiency and robust infrastructure.

“We are the lowest cost producer. Our extraction cost is $3, and it still is $3. And with low extraction cost, healthy balance sheet, and our investment that is continuing to be capturing opportunities that we have,” Nasser said. 


Closing Bell: Saudi main index closes in red at 10,990 

Updated 29 May 2025
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Closing Bell: Saudi main index closes in red at 10,990 

  • Parallel market Nomu dropped 123.20 points to close at 26,809.75
  • MSCI Tadawul Index declined by 0.70 percent to 1,403.80

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, as it shed 62.35 points, or 0.56 percent, to close at 10,990.41. 

The total trading turnover of the benchmark index was SR10.20 billion ($2.72 billion), with 169 of the listed stocks advancing and 74 declining. 

The Kingdom’s parallel market Nomu also dropped 123.20 points to close at 26,809.75. 

The MSCI Tadawul Index declined by 0.70 percent to 1,403.80. 

The best-performing stock on the main market was Saudi Reinsurance Co. The firm’s share price soared by 9.31 percent to SR50.50. 

The share price of East Pipes Integrated Co. for Industry increased by 7.83 percent to SR124. 

Arabian Drilling Co. also saw its stock price edging up by 5.12 percent to SR84.20. 

Conversely, the share price of Makkah Construction and Development Co. declined by 5.65 percent to SR96.80. 

On the announcements front, Al Moammar Information Systems Co., also known as MIS, said that it signed a contract valued at SR58.93 million with the Saudi Data and Artificial Intelligence Authority to operate and maintain the National Unified Visa Platform.

In a Tadawul statement, the company stated that the contract is valid for 36 months, with no related parties involved in the deal. 

MIS added that the contract is expected to have an impact on the company’s financial results starting from the third quarter of this year. 

The share price of MIS rose by 1.66 percent to SR134.80. 

Al Kathiri Holding Co. said that its subsidiary, Saraya Al Diyar Investment Co., has entered into a long-term lease agreement valued at SR143.1 million with the Aseer Municipality to build and operate a mixed-use hotel and commercial complex in Abha. 

Under the deal, Saraya Al Diyar Investment Co. will establish a four-star hotel with 180 keys, as well as retail and entertainment facilities in the project that spans a total area of 53,000 sq. meters. 

The new contract is in line with Al Kathiri Holding’s strategic direction to diversify its investment portfolio and expand into promising, high-impact sectors, aligning with the goals of Saudi Vision 2030, the company said in the statement. 

Al Kathiri Holding Co.’s share price was unchanged at SR2.08 by the end of Thursday’s trading. 


Saudi Arabia’s Jeddah airport soars to top three in Middle East airport rankings

Updated 29 May 2025
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Saudi Arabia’s Jeddah airport soars to top three in Middle East airport rankings

  • KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings

JEDDAH: King Abdulaziz International Airport has secured third place in the 2024 Airport Connectivity Index for the Middle East, marking a significant milestone in Saudi Arabia’s ascent as a global aviation hub.

The ranking was announced at the Air Connectivity Conference 2025, held in Shanghai, where the Airports Council International Asia-Pacific and Middle East unveiled its annual index.

KAIA followed Dubai International Airport and Qatar’s Hamad International Airport in the regional rankings.

This recognition underscores both KAIA’s growing operational capacity and Saudi Arabia’s broader Vision 2030 goal of transforming the Kingdom into a leading logistics and transportation center. As part of that strategy, Saudi Arabia aims to handle 330 million passengers annually, connect to 250 international destinations, and transport 4.5 million tonnes of cargo by 2030.

Mazen Johar, CEO of Jeddah Airports Co., said the latest ranking reflects the airport’s progress in expanding its air network and enhancing connectivity.

“This milestone demonstrates our commitment to operational excellence and aligns with our strategy to establish KAIA as a pivotal global hub,” he said in a statement to SPA.

Johar noted that the airport’s improved ranking is a result of sustained efforts to boost competitiveness, upgrade infrastructure, and elevate passenger experience in line with national transport goals.

KAIA also held the third spot in the 2023 edition of the index, announced during ACI’s annual assembly in Riyadh.

As part of its long-term development plans, JEDCO is implementing upgrades aligned with the National Transport and Logistics Strategy. These enhancements aim to increase KAIA’s passenger capacity to 114 million annually by the end of the decade.

In 2024, KAIA served 49.1 million passengers — up 14 percent from 2023 — marking the highest annual passenger volume recorded by any airport in the Kingdom. The busiest day was December 31, when over 174,600 passengers passed through the airport. December also set a monthly record, with traffic exceeding 4.7 million passengers.

In the Asia-Pacific rankings, Shanghai Pudong International Airport claimed the top spot, followed by Incheon International Airport in South Korea and Guangzhou Baiyun International Airport. Hong Kong International Airport was recognized as the most improved airport in terms of connectivity across both regions.

Headquartered in Hong Kong with a regional office in Riyadh, ACI Asia-Pacific and Middle East represents airports in some of the world’s fastest-growing aviation markets. The Airport Connectivity Index— developed with PwC in 2023 and refined in its third edition — measures network scale, frequency, destination economic weight, and connection efficiency.

According to ACI, air connectivity in the Middle East grew 28 percent year on year, while Asia-Pacific saw a 13 percent increase, reflecting a 14 percent average growth across both regions. These gains signal a robust post-pandemic recovery and the continued momentum of global air travel.