China’s rising clout spotlighted at finance chief meetings before G7 summit

Japanese Finance Minister Shunichi Suzuki, center, and Governor of the Bank of Japan Kazuo Ueda, right, attend the presidency press conference at the G7 meeting at Toki Messe in Niigata, Japan, Saturday, May 13, 2023. (AP / Pool Photo)
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Updated 15 May 2023
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China’s rising clout spotlighted at finance chief meetings before G7 summit

  • G7 host Japan persuaded its counterparts to launch a new program to diversify supply chains for strategically important goods away from China
  • G7 finance chiefs’ also held their first outreach in 14 years, aimed at winning over emerging nations such as Brazil, the Comoros, India, Indonesia, Singapore and South Korea

TOKYO: The weekend gathering of finance chiefs from the Group of Seven (G7) advanced economies did not single out China as a threat in their communique, but left signs the world’s second-largest economy will loom large at this week’s summit in Hiroshima.

Efforts to grapple with China’s growing global presence were evident at the three-day G7 finance chiefs’ gathering in Niigata, Japan, during which they held their first outreach in 14 years, aimed at winning over emerging nations.

The meeting with Brazil, the Comoros, India, Indonesia, Singapore and South Korea primarily tackled issues such as debt and high-level infrastructure investment, in a tacit counter to China’s Belt and Road initiative, analysts say.

“What’s going on at the G7 is reflecting changes in global order following the loss of the US dominance,” said Masamichi Adachi, economist at UBS Securities. “No one is being able to draw up a grand design with shifting of power.”

G7 host Japan persuaded its G7 counterparts to launch a new program by the end of 2023 to diversify supply chains for strategically important goods away from China. The G7 comprises the United States, Britain, France, Japan, Italy, Germany and Canada.

But the finance chiefs’ closing communique did not mention a US-proposed idea for narrow restrictions on investment to China, a potential rift among the grouping on how far they should go in pressuring Beijing.

A Japanese finance ministry official at the gathering, who declined to be named because of he sensitivity of the matter, said the idea was discussed in Niigata, but declined to elaborate.

China is among the biggest markets for most G7 countries, particularly for export-reliant economies such as Japan and Germany. China-bound exports account for 22 percent of Japan’s overall shipments.

Japan and the United States want to try to win over countries, including those in the Global South, with promises of foreign direct investment and aid, analysts say.

US President Joe Biden last year was host of a US-Africa leaders summit in Washington, aiming to bolster alliances amid the growing Chinese presence on that continent. Japan followed suit, with Prime Minister Fumio Kishida visiting Egypt, Ghana, Kenya and Mozambique this month.

In a joint statement on Saturday, the G7 finance chiefs stressed the urgency of addressing debt vulnerabilities in low- and middle-income countries, mentioning Zambia, Ethiopia, Ghana and Sri Lanka.

They did not mention China, but said foreign investments in critical infrastructure “may pose risks for economic sovereignty,” and thus must “not undermine the economic sovereignty of host countries.”

Treasury Secretary Janet Yellen said in March that Beijing’s lending activities left developing countries “trapped in debt,” adding that Washington was working to counter China’s influence in international institutions and in lending.

“There were talks about coercion” at the G7 finance leaders’ meeting, the Japanese finance ministry official said.

The G7 summit will most likely have a special session on China to debate Beijing’s “economic coercion” against other countries, according to a Reuters report.

“No matter how the G7 want to fence in the Global South, it’s not easy,” said Atsushi Takeda, chief economist at the Itochu Economic Research Institute. “These emerging economies won’t side with either the West or China, while carefully weighing what will be in their best interests.”


Saudi Arabia raises $704m through sukuk issuances in March 

Updated 19 March 2025
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Saudi Arabia raises $704m through sukuk issuances in March 

RIYADH: Saudi Arabia has raised SR2.64 billion ($704 million) through sukuk issuances in March as the Kingdom continues to explore opportunities in debt markets to accelerate economic diversification efforts. 

The latest riyal-denominated offering follows an SR3.07 billion issuance in February and SR3.72 billion in January. 

Saudi Arabia also raised SR11.59 billion in December and SR3.41 billion in November. 

The Kingdom has been playing a pivotal role in the global sukuk market, leveraging debt sales to finance projects under its Vision 2030 economic transformation plan.

According to a statement by Saudi Arabia’s National Debt Management Center, the issuance for March was divided into four tranches, with the first one valued at SR364 million and set to mature in 2027. 

The second tranche has a value of SR316 million, due in 2029, while the third, at SR1.46 billion, is set to mature in 2032.

The fourth tranche worth SR500 million will expire in 2039.

Sukuk, a Shariah-compliant financing instrument, allows investors to hold partial ownership of an issuer’s assets while adhering to Islamic finance principles. 

Saudi Arabia’s debt market has seen significant growth in recent years, attracting investors’ interest in debt instruments amid rising interest rates.

In March, a report released by Kuwait Financial Center, also known as Markaz, said that Saudi-based primary issuances of bonds and sukuk led the Gulf Cooperation Council region in 2024, raising $79.5 billion through 79 issuances.

Markaz added that the Kingdom contributed to 53.7 percent of the overall primary debt issuances in the GCC region in 2024.

In February, Saudi Arabia also raised €2.25 billion ($2.36 billion) through a euro-denominated bond sale, including its first green tranche, as part of its Global Medium-Term Note Issuance Program.

Affirming the growth of the market of such Islamic bonds, S&P Global, in January, said that global sukuk issuance is projected to hit between $190 billion and $200 billion in 2025, driven by increased activity in key markets, including Saudi Arabia and Indonesia. 

In December, another report released by Kamco Invest projected that the Kingdom is expected to witness the greatest share of bond and sukuk maturities in the GCC, reaching $168 billion from 2025 to 2029. 

According to Kamco Invest, Saudi Arabia’s maturities will be led by government issuances that are projected to hit $110.2 billion during the period.


Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire

Updated 19 March 2025
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Oil Updates — crude slips after US-Russia agreement on 30-day energy ceasefire

  • Putin agrees to halt on energy facility strikes
  • Ongoing Middle East turmoil limits oil price declines
  • API shows weekly US crude stocks rise, fuel inventories fall

SINGAPORE: Oil prices fell on Wednesday after Russia agreed to US President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more Russian oil entering global markets.

Brent crude futures fell 19 cents, or 0.3 percent, to $70.37 a barrel by 7:20 a.m. Saudi time. US West Texas Intermediate crude was down 20 cents, or 0.3 percent, to $66.70.

Russian President Vladimir Putin agreed on Tuesday to stop attacking Ukrainian energy facilities but stopped short of endorsing a full 30-day ceasefire that Trump hoped for.

“The agreement marks a positive step toward an eventual resolution, with the halt of attacks on Ukrainian energy facilities reducing further oil supply disruption risks and keeping oil prices under some pressure,” said Yeap Jun Rong, market strategist at IG.

Russia is one of the world’s top oil suppliers, but its output has waned since the beginning of the war, which resulted in sanctions on Russian energy.

A potential ceasefire could lead to an easing of sanctions, which might raise oil supply and ease prices, analysts said.

US tariffs on Canada, Mexico and China have raised recession fears, which also weighed on oil prices as that would have a dampening effect on demand for crude.

Oil markets remain focused on price downside despite rising Middle East tensions, Goldman Sachs analysts said in a note on Wednesday.

“Tariff escalation and high spare capacity skew the medium-term risks to our forecast to the downside,” the analysts said.

Trump vowed to continue his country’s assault on Yemen’s Houthis and said he would hold Iran responsible for any attacks carried out by the group that has disrupted shipping in the Red Sea.

Israeli air strikes in Gaza, meanwhile, killed at least 200 people, Palestinian health authorities said, which ended a week-long ceasefire and elevated risks of oil supply being threatened from the broader region.

US crude oil stocks data, meanwhile, painted a mixed picture, with crude stocks rising while fuel inventories fell.

Crude stocks were up 4.59 million barrels in the week ended March 14, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.71 million barrels and distillate stocks were down 2.15 million barrels, they said.

Official government data is due on Wednesday.


PIF-backed AviLease delivers three A320neo aircraft to SDH Wings

Updated 18 March 2025
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PIF-backed AviLease delivers three A320neo aircraft to SDH Wings

RIYADH: AviLease, an aircraft leasing firm owned by the Public Investment Fund, has delivered three Airbus A320neo aircraft to SDH Wings.

SDH Wings is a joint venture between the Saudi firm and the Chinese sovereign fund, where the Kingdom holds a 10 percent stake.

According to a press release, the three new aircraft will be leased long-term to a Saudi-based airline. With this latest addition, SDH Wings now owns a total of 25 aircraft.

Launched in 2022 by PIF, AviLease was created to harness the potential of promising sectors within Saudi Arabia, aiming to drive economic diversification and contribute to the growth of the non-oil GDP.

“This delivery represents a significant milestone in our relationship with SDH Wings. We are proud to support their expansion with these state-of-the-art aircraft,” said AviLease CEO Edward O’Byrne.

This delivery also signals a new phase in the collaboration between AviLease and SDH Wings, following a broader memorandum of understanding to acquire 20 additional, predominantly next-generation aircraft.

Under this agreement, AviLease will further assist SDH Wings in expanding its fleet while strengthening its partnership with Sichuan Development International Holdings, the majority shareholder of SDH Wings.

“By leveraging AviLease’s expertise in leasing and financing modern, fuel-efficient aircraft, SDH Wings is well-positioned to capitalize on emerging opportunities in the aviation financing market,” said the press release.

In October 2024, AviLease acquired nine aircraft from global lessor Avolon, building on the successful purchase of 13 aircraft from Avolon in 2023.


Alphabet to buy cybersecurity startup Wiz for $32bn

Updated 18 March 2025
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Alphabet to buy cybersecurity startup Wiz for $32bn

NEW YORK: Google owner Alphabet will buy cybersecurity firm Wiz for $32 billion — in a deal set to boost the tech giant’s in-house cloud computing amid burgeoning artificial intelligence growth.

If closed, the-cash transaction, announced on Tuesday, will become Google’s most expensive acquisition in the company’s 25-year history. The purchase gives Google new momentum in its efforts to compete in the cloud-computing business by offering more security for its services.

“Wiz and Google Cloud are both fueled by the belief that cloud security needs to be easier, more accessible, more intelligent, and democratized, so more organizations can adopt and use cloud and AI securely,” Wiz CEO Assaf Rappaport said in a blog post.

The company says Wiz will join Google Cloud — and that this deal represents a company investment “to accelerate two large and growing trends in the AI era: improved cloud security and the ability to use multiple clouds.”

Google CEO Sundar Pichai said in a statement, Google Cloud and Wiz “will turbocharge improved cloud security and the ability to use multiple clouds.”

Assaf Rappaport, co-founder and CEO, added that the deal will “bolster our mission to improve security and prevent breaches by providing additional resources and deep AI expertise.”

Wiz, based in New York, was founded in 2020, makes security tools designed to shield the information stored in remote data centers from intruders.

Google has had its eyes on Wiz for some time. The purchase price announced Tuesday surpasses a reported $23 billion buyout proposal that Wiz rejected last July.

The proposed buyout will get a close look from antitrust regulators. While many expect the Trump administration to be more friendly to business deals, it has also shown skepticism of big tech.

Also, the new Federal Trade Commission Chair Andrew Ferguson has vowed to maintain a tough review process for mergers and acquisitions.


Closing Bell: Saudi main index closes in red at 11,792

Updated 18 March 2025
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Closing Bell: Saudi main index closes in red at 11,792

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 90.64 points or 0.76 percent to close at 11,792.40. 

The total trading turnover of the benchmark index was SR5.94 billion ($1.58 billion), with 52 stocks advancing and 192 declining. 

The Kingdom’s parallel market, Nomu, also shed 315.76 points to close at 30,718.93. 

The MSCI Tadawul Index declined by 0.73 percent to 1,492.90. 

The best-performing stock on the main market was Aldawaa Medical Services Co. The firm’s share surged by 9.55 percent to SR78. 

The share price of Saudia Dairy and Foodstuff Co. also increased by 3.70 percent to SR313.60. 

Walaa Cooperative Insurance Co. also saw its stock price edging up by 3.62 percent to SR19.48. 

Conversely, the share price of Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail declined by 7.21 percent to SR11.84. 

On the announcements front, Derayah Financial Co., which debuted on Saudi Arabia’s main market on March 10, said that its net profit for 2024 reached SR443.9 million, representing a rise of 34.64 percent compared to 2023. 

The company attributed the rise in profit to significant growth across the company’s various business segments which include brokerage, asset and wealth management, as well as special commission income.

The share price of Derayah Financial Co. declined by 3.25 percent to SR38.70. 

Canadian Medical Center Co. announced that its net profit for 2024 stood at SR10.26 million, down by 34.63 percent from 2023. 

In a Tadawul statement, the firm said that the decline in net profit was due to higher operating and investment costs. 

Canadian Medical Center Co.’s board of directors also approved the payment of a cash dividend at 5 percent or SR0.05 per share for 2024. 

The company’s share price dropped by 0.58 percent to SR6.86. 

Elm Co. announced that its shareholders approved the firm’s acquisition of the shares held by the Public Investment Fund in Thiqah Business Services Co. for SR3.4 billion. 

The approval follows a share purchase agreement signed by Elm Co. and PIF in January to acquire the sovereign wealth fund’s entire stake in Thiqah, amounting to 45,000 shares. 

Elm Co. Saw its share price decline by 1.42 percent to SR971. 

Saudi Arabia’s Capital Market Authority approved the request of Marketing Home Group Co. to float 4.8 million shares in the Kingdom’s main market for an initial public offering. 

The offer shares amount to 30 percent of Marketing Home Group Co.’s share capital. 

The CMA also approved the application of Qudra Communications & Information Technology Co. to float 5 million shares, or 18.8 percent of the firm’s capital, on Nomu. 

Hawyia Auctions Co. also received approval from CMA to float 2.4 million shares, or 12 percent of the company’s capital, on Nomu. 

CMA added that the prospectus for these potential IPOs will be published well in advance of the offering’s start date. The authority’s approval is valid for six months from its resolution date.