Finance

The Sultanate of Oman and Saudi Arabia have entered into an agreement aimed at boosting financial sector collaboration. This memorandum of understanding (MoU) was signed by Oman's Minister of Finance, H E Sultan Salim al Habsi, and his Saudi counterpart, Mohammed Abdullah al Jadaan. Key objectives of this MoU include strengthening bilateral relations, sharing financial expertise, and enhancing coordination on...

Saudi Arabia's banking sector is witnessing increased activity in the debt and sukuk markets as major banks aim to boost their capital and support growth. Key players like Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are issuing significant amounts to attract local and international investors. This trend aligns with the Capital Market Authority's goal to transform the...

Saudi Arabia's banking sector is witnessing increased activity in debt and sukuk markets as major banks aim to bolster their capital and support growth initiatives. Leading institutions like Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are issuing significant financial instruments to attract local and global investors. This trend aligns with the Capital Market Authority's Vision 2030, which...

Alinma Investment Company has received approval from both unitholders and the Capital Market Authority (CMA) for significant changes to the Alinma Saudi Government Sukuk ETF Fund - Short Maturity. These changes will take effect on 27 January 2025. The fund, adhering to Sharia principles, is an open-end public investment. Certification of its Sharia compliance has been granted by an appointed...

The GCC region saw a notable increase in Islamic debt issuances in 2024, driven by Qatar and Saudi Arabia, according to Kamco Invest. Total sukuk issuances reached a historic $82.1 billion, up from $56.1 billion the previous year, while non-GCC global sukuk fell to $50.4 billion from $65.1 billion. The GCC was the primary contributor to the rise in bond...

Saudi Arabia's Capital Market Authority (CMA) has announced its strategic plan for 2024-2026, aiming to advance the Kingdom's financial market and boost its global standing. This initiative, comprising over 40 projects, is designed to align with Vision 2030, transforming the capital market into a vital economic component. Bloomberg's Constantin Cotzias underscores the strategy's importance in fostering economic diversification through financial...

Saudi Arabia plans to address its funding needs of approximately 139 billion riyals ($37.02 billion) for 2025, as outlined by Finance Minister Mohammed al-Jadaan. The National Debt Management Centre (NDMC) announced these plans. The strategy focuses on diversifying both local and international financing methods to meet these needs efficiently. This will include issuing sovereign debt instruments within a solid risk...

Saudi Arabia has successfully issued a $12 billion bond as part of its Global Medium-Term Note Issuance Program, attracting significant interest with an order book reaching $37 billion. This issuance was managed by the National Debt Management Center (NDMC) and included three segments: a $5 billion bond due in 2028, a $3 billion bond maturing in 2031, and a $4...

Saudi Arabia has kicked off 2025 with significant borrowing to support its ambitious economic transformation goals. The kingdom issued $12 billion in bonds and secured a $7 billion Islamic loan from 20 banks. Recently, the finance minister also reported a $2.5 billion raise from three foreign banks. As part of Crown Prince Mohammed bin Salman’s Vision 2030, the government is...

Saudi Arabia's financial strategy for 2025 involves securing approximately 139 billion riyals ($37.02 billion) in funds. This plan has been sanctioned by Finance Minister Mohammed Al Jadaan, according to the National Debt Management Center (NDMC). The exchange rate at the time of reporting was $1 to 3.7550 riyals.

China and Saudi Arabia Strengthen Financial Bonds China has selected Saudi Arabia for its upcoming US dollar bond issuance, marking its first in three years. This decision indicates the strengthening financial relationship between the two countries. Saudi Arabia is increasingly relying on Chinese investments to fund its extensive development initiatives. The Vision 2030 project, aimed at transforming the Saudi economy...

The Saudi Arabian banking industry is experiencing significant change, spurred by Vision 2030 and the advancement of digital technology. Financial institutions are focusing on improving customer experiences, innovating services, and competing in a more dynamic market. The Saudi Arabian Monetary Authority (SAMA) has implemented progressive regulations to promote financial inclusion, enhance digital banking, and create opportunities for both traditional banks...

The Saudi Central Bank (SAMA) has lowered its key interest rates by 50 basis points. The repurchase agreement (repo) rate is now at 5.50 percent, and the reverse repurchase agreement (reverse repo) rate stands at 5.00 percent. This adjustment aligns with SAMA's goal of maintaining monetary stability in Saudi Arabia. The move follows the US Federal Reserve’s recent rate cut...

Saudi Arabia's Strategic Increase in US Treasury Holdings Saudi Arabia has boosted its US Treasury bills and bonds holdings by $2.4 billion, reaching a total of $142.7 billion in July 2024. This move aligns with the anticipation of a US interest rate cut and aims to capitalize on the high returns from these secure debt instruments, as reported by Al-Eqtisadiah....

The Saudi Tadawul All Share Index climbed by 1.34%, closing at 12,080.47, with a trading turnover of SR9.47 billion ($2.52 billion). Out of the listed stocks, 152 rose while 73 declined. The parallel market, Nomu, dipped by 1.01% to 25,337.96 points, with 30 stocks advancing and 41 retreating. The MSCI Tadawul Index also saw a rise of 1.41%, ending at...

Saudi Gazette Report RIYADH — The Saudi Central Bank (SAMA) has cut the repurchase agreement (repo) rate by 50 basis points to 5.50% and the reverse repo rate by the same margin to 5.00%. This move aligns with SAMA's commitment to maintaining monetary stability. Following the US Federal Reserve, central banks in the UAE, Bahrain, Qatar, and Kuwait also reduced...

Saudi Arabia has reduced its benchmark interest rate from 6% to 5.5%, following a 50-basis-point cut by the central bank. This decision aligns with the US Federal Reserve's recent rate reduction, marking a shift after two years of increases aimed at controlling inflation. Gulf Cooperation Council (GCC) central banks, including Saudi Arabia, adjusted their rates due to their currencies being...

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...