Finance

The US Federal Reserve has lowered interest rates for the first time in over four years, marking a significant policy shift. This move, after a period of high rates to control inflation, aims to make borrowing less expensive for consumers. As major central banks reduce rates, emerging markets stand to gain. Historically, lower rates in developed countries make emerging markets...

CATRION Catering Holding Company has signed a Sharia-compliant credit facility deal with Saudi Awwal Bank (SAB) for SAR 221 million. CATRION Catering Services LLC, a subsidiary, secured the funding on 16 September 2024, as revealed in a bourse disclosure. Out of the total, SAR 209 million will fund the Red Sea catering project, while SAR 12 million will cover the...

The Saudi EXIM Bank recently hosted a meeting for the Global Association of Risk Professionals (GARP) to explore best practices in managing financial risks within international operations. This event aimed to foster collaboration and share expertise among top experts and decision-makers. A key session addressed risk management trends and challenges in Saudi Arabia, featuring insights from Saudi EXIM Bank Chief...

Saudi Arabia's central bank, SAMA, announced a reduction in its Repurchase Agreement (repo) rate by 50 basis points to 5.50%, and its reverse repo rate by the same margin to 5.0%. This decision aligns with the Federal Reserve's recent cut of U.S. interest rates by half a percentage point. The Saudi riyal, pegged to the U.S. dollar, is directly influenced...

Saudi Banking Sector Thrives Amid Economic Diversification: Moody’s Saudi Arabia's push for economic diversification is significantly boosting its banking sector, with industries like construction and tourism presenting lucrative lending opportunities, according to a recent Moody’s report. Moody’s highlighted that the Kingdom’s focus on reducing reliance on hydrocarbon revenue has positively impacted the performance of the banking sector’s loan portfolio. The...

Saudi Arabian stocks saw an uptick on Wednesday, driven by gains in various sectors. The overall market index rose by 0.30% at closing. Among the top performers, Red Sea Housing Services surged 9.96% to settle at 53.00. Batic Investments and Logistics climbed 5.22% to 3.63, and Saudi Awwal Bank increased by 4.32% to 35.05. On the downside, Gulf Insurance Group...

Saudi Arabia’s Tadawul All Share Index rose by 35.28 points (0.30%) to close at 11,920.94 on Wednesday. Trading turnover reached SR5.65 billion ($1.50 billion) with 140 stocks advancing and 81 declining. The MSCI Tadawul Index also saw an increase, gaining 6.50 points (0.44%) to finish at 1,486.63. Meanwhile, the Nomu parallel market dipped slightly by 20.70 points (0.08%) to close...

Investors are keenly awaiting the US Federal Reserve’s decision on interest rates, expected after the Federal Open Market Committee meeting. The debate centers on a potential 25 or 50 basis point cut, with a 50-basis point reduction being the favored outcome. This decision could significantly impact Gulf markets, especially Saudi Arabia. Financial experts predict enhanced market liquidity, particularly in key...

Riyadh: The National Debt Management Center has concluded the September 2024 issuance of the Saudi Arabian Government's SAR-denominated Sukuk Program. The total amount allocated was SAR 2.603 billion. The Sukuk issuance was divided into six tranches: First tranche: SAR 255 million, maturing in 2027. Second tranche: SAR 375 million, maturing in 2029. Third tranche: SAR 638 million, maturing in 2031....

Saudi Arabia's National Debt Management Center (NDMC) finalized its riyal-denominated sukuk issuance for September, totaling SR2.603 billion ($690 million). In August, the Kingdom issued SR6.01 billion in sukuk, up from SR3.21 billion in July and SR4.4 billion in June. This decline in September aligns with Fitch Ratings' prediction of a slowdown in the third quarter, expected to rebound later due...

Saudi Arabia’s Tadawul All Share Index saw a modest increase on Tuesday, rising by 18.29 points (0.15%) to close at 11,885.66. The trading turnover reached SR5.71 billion ($1.52 billion), with 131 stocks advancing and 97 declining. In contrast, the Nomu parallel market dropped 117.01 points to end at 25,616.92, while the MSCI Tadawul Index gained 3.47 points, closing at 1,480.13....

Saudi Arabia has approved its first exchange-traded funds (ETFs) tracking Hong Kong equities, as announced by the Capital Market Authority (CMA). This marks the introduction of such financial products in the Middle East. The approval aligns with efforts by Beijing and Hong Kong to strengthen relationships with Arab nations amidst rising tensions with Western countries. The CMA has authorized AlBilad...

Saudi Arabia's capital market institutions saw a 27% rise in operating income, reaching $1.1 billion in Q2. Operating income, which factors in wages, depreciation, and cost of goods sold, reflects profitability after these expenses. According to the Capital Market Authority (CMA), asset management led the way, contributing 31% of total revenue, a 22% increase from last year. Investment activities contributed...

Saudi Arabia has approved its first exchange-traded funds (ETFs) tracking Hong Kong-listed equities, marking a significant milestone for the Middle East. This move aligns with efforts by Beijing and Hong Kong to strengthen ties with Arab nations amid increasing tensions with the West. The Capital Market Authority (CMA) of Saudi Arabia announced the approval of AlBilad Investment Company's request to...

What's happening? Saudi Arabia has approved its first ETF that tracks Hong Kong equities, marking a significant step in enhancing financial ties between the two regions. Implications The Capital Market Authority of Saudi Arabia has greenlit AlBilad Investment Company to introduce the 'Albilad CSOP MSCI Hong Kong China Equity ETF' on the Saudi Stock Exchange (Tadawul). This ETF, developed in...

Saudi Investment Bank (SAIB) intends to launch a dollar-denominated Tier I sukuk, potentially reaching up to $1.5 billion, under its new sukuk program. This offering will be available through a private placement aimed at qualified investors. The specific value and terms of the sukuk will be decided based on market conditions, as mentioned in the bank's disclosure on Tadawul. SAIB...

Saudi Arabia’s Capital Market Sees 27% Revenue Growth Saudi Arabia's capital market institutions experienced a 27% increase in operating income in Q2 2024, reaching $1.1 billion. The Capital Market Authority reported that asset management was the top contributor, making up 31% of the revenue with $341 million, a 22% rise from the previous year. Investment activities followed, contributing 30% or...

Saudi Arabia’s Capital Market Institutions Report 27% Revenue Growth Saudi Arabia's capital market institutions experienced a 27% increase in operating income in Q2 2024, reaching $1.1 billion. The Capital Market Authority's data shows that asset management was the top revenue generator, contributing 31% or $341 million, marking a 22% year-on-year rise. Investment activities followed, accounting for 30% of income at...

Standard & Poor’s (S&P) has reaffirmed Saudi Arabia’s credit rating at "A/A-1" for both local and foreign currency, improving the outlook from "stable" to "positive." This decision is attributed to Saudi Arabia's dedication to comprehensive reforms and investments aimed at developing the non-oil economy and maintaining public financial sustainability. S&P anticipates significant growth in the non-oil sector, driven by Saudi...

Saudi Arabia’s Fourth Milling Company (MC4) has initiated investor orders for its IPO, aiming to raise up to $228.9 million. This move taps into the strong interest in listings within the GCC region. MC4 is offering 162 million shares, representing 30% of its total issued share capital. The indicative share price ranges from SAR 5 to SAR 5.30, suggesting a...

Saudi Arabia's Vision 2030 is revitalizing its financial sector, marked by a surge in IPOs, mergers, and acquisitions. This transformation has spurred investment opportunities for both local and foreign investors, with the investment banking market expected to reach $1.02 billion this year and $1.15 billion by 2029, growing at 2.43% annually. EFG Hermes KSA CEO Saud Altassan discusses how Vision...

Saudi Arabia and Hong Kong Strengthen ETF Ties Saudi Arabia's first ETFs focused on Hong Kong's equities market are set to be listed on the local stock exchange by year-end, aiming to bolster financial connections between the two regions. Hong Kong's financial secretary, Paul Chan, announced at the Bund Summit in Shanghai that reciprocal actions, including the listing of Hong...

The Tadawul All Share Index in Saudi Arabia rose by 57.75 points (0.49%) to 11,900.30 on Sunday, with a trading turnover of SR4.14 billion ($1.10 billion). Out of the stocks traded, 138 advanced while 80 declined. However, the parallel market Nomu fell by 164.65 points (0.63%) to 25,769.95, with 19 stocks advancing and 46 declining. The MSCI Tadawul Index also...

Saudi Arabia’s Capital Market Authority (CMA) has rolled out a strategic plan for 2024-2026 to strengthen its debt market and boost the international competitiveness of its asset management sector. This plan focuses on three main pillars and includes over 40 initiatives aimed at market growth and efficiency. A significant part of this strategy is enhancing the stock market's role in...

Saudi Arabia’s Capital Market Authority (CMA) has announced a strategic plan for 2024-2026 aimed at strengthening its debt market and boosting the global competitiveness of its asset management sector. The strategy focuses on three main pillars with over 40 initiatives to enhance market growth and efficiency. A significant goal is to improve the stock market’s role in capital raising. Key...

Saudi Arabia's finance and manufacturing sectors are particularly susceptible to cyberattacks, according to Samir Omar, CEO of MENA ISC. The finance sector alone has faced 18.2% of these attacks. In terms of cybersecurity, Saudi Arabia is a leader in the Arab world and holds the second position globally in the 2023 Global Cybersecurity Index. Omar highlighted that while the global...

Saudi Banks' Profits Hit Record High, Loans Surge Saudi banks achieved a record profit of $2.1 billion in July, a 23% increase from the previous year. From January to July, total profits rose to $13.4 billion, marking a 13% annual growth. Deposits grew by 8% to $704 billion, with term deposits surging 20% to $247.4 billion. Demand accounts, comprising 53%...

Saudi Arabia plans to cut down its debt issuance in the latter half of 2024, buoyed by significant dividend payments from Aramco, as per Fitch Ratings. This follows a period of heavy debt issuance in early 2024, showcasing the government's strategic fiscal maneuvers. In the first half of 2024, Saudi Arabia stood out as the largest issuer of US dollar...

Saudi Arabia and Germany are poised to enhance their economic cooperation in the finance sector following high-level discussions between officials from both nations. Saudi Investment Minister Khalid Al-Falih met with German Finance Minister Christian Lindner to discuss boosting investment relations and tackling shared interests. This comes as Germany's exports to Saudi Arabia reached €705 million in June, with imports from...

Saudi Arabia's Rising Influence in Global Financial Markets Saudi Arabia is positioning itself as a key player in global fixed income and debt markets, driven by its ambitious Vision 2030 initiative. This transformation is fueled by extensive construction projects and infrastructure development, necessitating diversified financial strategies and effective risk management. At the Debt Markets and Derivatives Forum 2024 in Riyadh,...