Closing Bell: TASI edges up 16.72 points, reaches $2.1bn trade volume   

Closing Bell: TASI edges up 16.72 points, reaches $2.1bn trade volume   
The total trading turnover of the benchmark index was SR7.89 billion ($2.10 billion) as 137 stocks advanced, while 76 retreated.  Shutterstock
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Updated 27 December 2023
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Closing Bell: TASI edges up 16.72 points, reaches $2.1bn trade volume   

Closing Bell: TASI edges up 16.72 points, reaches $2.1bn trade volume   

RIYADH: Saudi Arabia’s Tadawul All Share Index continued its upward trend on Wednesday, as it gained 16.72 points, or 0.14 percent, to close at 11,889.35

The total trading turnover of the benchmark index was SR7.89 billion ($2.10 billion) as 137 stocks advanced, while 76 retreated.    

The parallel market Nomu performed negatively on Wednesday, dropping by 29.47 points, or 0.12 percent, to 23,992.54. However, the MSCI Index edged up by 1.01 points to 1,537.96.

The best-performing stock on the main index was Astra Industrial Group, whose share price soared 9.92 percent to SR130.8.     

Other top performers of the day included SAL Saudi Logistics Services Co. and Etihad Atheeb Telecommunication Co., with their share prices surging by 8.04 percent and 6.33 percent to reach SR193.6 and SR171.4, respectively.     

The worst performer of the day was CHUBB Arabia Cooperative Insurance Co. The share price of the company dipped by 5.47 percent to SR25.05.     

Jazan Energy and Development Co. and Rabigh Refining and Petrochemical Co. were also amongst the worst performers, with their stocks dropping by 2.34 percent and 1.90 percent to close at SR15.04 and SR10.32, respectively.   

In the parallel market, Nomu, Knowledge Net Co. was the top gainer, with its share price surging by 7.46 percent to SR36. 

Other top gainers in the parallel market were Alwaha REIT Fund and Armah Sports Co., with their share prices surging by 6.66 percent and 5.83 percent to reach SR12.5 and SR50.8, respectively. 

Edarat Communication and Information Technology Co. was the worst performer on Nomu, as the company’s share price slipped by 5.31 percent to SR353.2.  

View United Real Estate Development Co. and Nofoth Food Products Co. were among other poor performers on Nomu, with their share prices dropping by 4 percent and 3.76 percent, reaching SR72 and SR22, respectively. 

In Wednesday’s trading session, Saudi National Co. for Learning and Education, or NCLE, saw its shares climb by 4.49 percent. 

This marked the stock’s highest closing value since its initial listing, with approximately 200,000 shares traded. The company’s shares peaked at SR125.60 during the day. 


Qatar’s sukuk issuance expanded by 122% in H1: Fitch Ratings

Qatar’s sukuk issuance expanded by 122% in H1: Fitch Ratings
Updated 23 September 2024
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Qatar’s sukuk issuance expanded by 122% in H1: Fitch Ratings

Qatar’s sukuk issuance expanded by 122% in H1: Fitch Ratings

RIYADH: Qatar’s sukuk issuances surged by 122 percent in the first half of this year compared to the same period in 2023, reaching $500 million, according to a new analysis.  

In its latest report, Fitch Ratings indicated that overall bond issuance in the country also increased by 59 percent year on year to $12.4 billion in the first six months of 2024.  

The US-based credit rating agency noted that the debt capital market in Qatar is expected to remain broadly stable due to the government’s ongoing debt repayments and limited access to corporate DCM. 

The DCM is a market for trading securities such as bonds and promissory notes, utilized by companies and governments for long-term funding. 

Qatar’s DCM is the third-largest in the Gulf Cooperation Council region, following Saudi Arabia and the UAE.  

In July, Fitch reported that DCM issuances in the GCC are approaching the $1 trillion outstanding mark, with growth expected through 2024 and 2025. 

“The sovereign holds the majority of the DCM in Qatar. Most Qatari banks have also issued senior unsecured debt to extend their maturity profiles and diversify funding. Corporate issuances have been small,” Fitch stated. 

By the end of the first half of this year, Qatar’s DCM stood at $130 billion, unchanged from the same period last year. The analysis revealed that sukuk issuances accounted for 10 percent of the gulf nation’s DCM, down from 13 percent in the same period of 2023.  

Fitch reported that the majority of DCM outstanding was denominated in US dollars at 65 percent, followed by Qatari riyals at 30 percent by the end of the first half of this year. 

“The regulator has taken steps to advance the still-developing DCM in recent years. However, DCM limitations remain, such as the nascent riyal-DCM market, the concentration of the investor base in banks and most corporates preferring bank financing over bonds or sukuk,” the agency noted. 

The report further highlighted that the Qatar Central Bank published its environment, social, governance, and sustainability strategy for the financial sector in June. This strategy aims to enhance sustainable finance and develop ESG sukuk and bonds. 

Outcomes include increasing transparency regarding the financial sector’s role in national sustainability through a taxonomy of sustainable activities and guidelines for issuing sustainable products like loans, bonds, and sukuk. 

According to Fitch, ESG debt in Qatar reached $3.8 billion by the end of the first half of this year, with sukuk accounting for 19.5 percent. 

“The inclusion of sukuk will attract investors seeking shariah-compliant, ESG options. These initiatives are intended to enhance Qatar’s appeal to global investors focused on sustainability,” the report concluded. 


Egypt to sell United Bank stake in IPO by Q1 2025, central bank says

Egypt to sell United Bank stake in IPO by Q1 2025, central bank says
Updated 23 September 2024
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Egypt to sell United Bank stake in IPO by Q1 2025, central bank says

Egypt to sell United Bank stake in IPO by Q1 2025, central bank says
  • Central bank is currently working on obtaining the required approvals related to the offering
  • United Bank’s total assets increased from 72 billion Egyptian pounds in 2021, to 106 billion pounds in June

RIYADH: Egypt’s central bank plans to sell shares in state-owned The United Bank in an initial public offering on the stock exchange by the end of the first quarter of 2025.

The central bank is currently working on obtaining the required approvals related to the offering, including the permissions of the Financial Regulatory Authority and the Egyptian Stock Exchange, according to a statement. 

The United Bank’s total assets increased from 72 billion Egyptian pounds ($1.48 billion) in 2021, to 106 billion pounds in June. The bank’s profits also grew from 1.15 billion pounds in December 2021, to reach 1.75 billion pounds by the end of December 2023.

The move aligns with the Central Bank of Egypt’s vision for sustainable development, which is embedded in the principle of sustainable finance. It aims to support development goals while fostering long-term stability across the economy, environment, and society as a whole.

The statement further revealed that completion of the offering is subject to market conditions and the timely receipt of the relevant regulatory approvals.

The United Bank stands out among Egyptian financial institutes due to its wide array of products and diverse customer base, which includes retail clients, institutions, small and medium-sized enterprises, and Islamic banking services. 

The bank also follows strong governance principles and international best practices, ensuring compliance with relevant regulations while achieving strong performance and sustainable growth.

The United Bank and its non-banking arm operate through a broad network that includes 68 branches, 225 ATMs, advanced digital channels, and 1800 employees.

Last week, Egypt said it is in advanced talks to sell the government’s remaining stake in Alex Bank to Italian private banking firm Intesa Sanpaolo SpA. 

This will pose the first major asset sale since devaluating its currency in March, Bloomberg reported at the time. 

The agreement will see the Italian lender, which already owns 80 percent of the Egypt-based bank, buy the remaining 20 percent and take complete ownership, Bloomberg added.

This follows last year’s announcement that the government unveiled an initial list of 32 assets it planned to offer investors in sectors ranging from banking to energy and real estate. It now targets raising between $2 billion-$2.5 billion by the end of the current financial year in June 2025 from asset sales.


UAE treasury bonds and sukuk programs raise $6.8bn, strengthening investment appeal

UAE treasury bonds and sukuk programs raise $6.8bn, strengthening investment appeal
Updated 23 September 2024
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UAE treasury bonds and sukuk programs raise $6.8bn, strengthening investment appeal

UAE treasury bonds and sukuk programs raise $6.8bn, strengthening investment appeal

RIYADH: The UAE Ministry of Finance reported raising 25 billion dirhams ($6.8 billion) through government bonds and dirham-denominated Islamic Treasury Sukuk Programs, launched in 2022. 

The ministry indicated that by the end of August, the programs had collectively raised the total amount, reflecting strong investor confidence and reinforcing the UAE’s position as a competitive global investment hub.

To date, 11.2 billion dirhams worth of government treasury bonds and 13.8 billion dirhams in Islamic sukuk have been issued under the two initiatives.

In May, the ministry repaid 4.85 billion dirhams in two-year treasury bonds, bringing the total outstanding bonds to 6.35 billion dirhams.

The UAE was the second-largest issuer in the Gulf Cooperation Council bond market during the first half of 2024, raising $20.6 billion through 65 issuances, up from $15.4 billion and 58 issuances in the same period last year.

This accounted for 27 percent of the total value of GCC bonds and sukuk. Saudi Arabia led the market, raising $37 billion through 44 issuances.

The combined outstanding public debt for the treasury bonds and Islamic Treasury Sukuk Programs now stands at 20.15 billion dirhams.

These programs were developed in collaboration with the Central Bank of the UAE, which acts as the issuance and payment agent. Settlement is conducted through a local platform that meets international standards, ensuring transparency and efficiency in the bond and sukuk issuance process. 

The ministry’s efforts have been supported by major banks, including Emirates NBD, Abu Dhabi Commercial Bank, First Abu Dhabi Bank, and others, serving as primary treasury bond distributors. 

Demand for each auction has been exceptionally high, with bids frequently exceeding the subscription sizes several times, a reflection of the strong market appetite for UAE debt instruments.

The program’s success has helped the UAE maintain high sovereign credit ratings, with an AA score from Fitch Ratings and an Aa2 standing from Moody’s, both with a stable outlook.

This financial credibility, alongside robust economic policies, has further enhanced the UAE’s attractiveness as an investment hub.

In addition to boosting investor confidence, these bonds and sukuk are playing a crucial role in developing a local currency market and establishing a medium-term yield curve. 

The bonds are issued with maturities ranging from two to five years, with plans to introduce longer-term bonds in the future. 

This strategy aims to diversify the UAE’s funding sources, stimulate the domestic financial and banking sector, and provide secure investment alternatives for local and foreign investors. 

By issuing these bonds and sukuk in the local currency, the UAE is positioning itself to better meet future funding needswhile strengthening the regional financial market. 

The Ministry of Finance continues pursuing initiatives to enhance the country’s economic resilience and contribute to its long-term sustainable growth.


Oman oil company OQEP sets price range for upcoming IPO on Muscat Exchange 

Oman oil company OQEP sets price range for upcoming IPO on Muscat Exchange 
Updated 23 September 2024
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Oman oil company OQEP sets price range for upcoming IPO on Muscat Exchange 

Oman oil company OQEP sets price range for upcoming IPO on Muscat Exchange 

RIYADH: Omani state-run oil and gas company OQ Exploration and Production has announced the price range for its upcoming initial public offering on the Muscat Stock Exchange, setting shares between 0.37 ($0.96) and 0.39 Omani rial per share. 

The company will offer 2 billion shares, equivalent to 25 percent of its total, with listing anticipated by Oct. 28, pending final regulatory approval. 

“This marks the largest IPO in Oman’s history and the first of its kind in the exploration and production sector,” said Ashraf Al-Mamari, Group CEO of OQ, following the Financial Services Authority’s approval of the prospectus.   

OQ first announced its intention to list OQEP on Sept. 9, aiming to drive future growth. 

Ahmed Al-Azkawi, CEO of OQEP, called the offering “a rare opportunity to invest in a leading Omani oil and gas explorer and producer.” 

This IPO follows successful listings of other OQ subsidiaries, including Abraj Energy Services and OQ Gas Networks. 

The share offering will be split into two tranches: one for institutional investors and one for retail investors.  

Institutional investors have been allocated 800 million shares, priced between 0.37 and 0.39 rial, with the final price to be set through a bookbuilding process. 

Anchor investors will receive 400 million shares, representing 20 percent of the offer, with multiple firms already committed. Omani institutions such as Al-Hosn Investment Co. SAOC and Bank Dhofar SAOG have pledged approximately 156 million rial at the maximum price. 

Retail investors will be allocated another 800 million shares, equally divided between large and small applicants. Omani individuals will receive a 10 percent discount on shares, with a maximum price of 0.351 rial per share, while non-Omani individuals will pay up to 0.39 rial. 

The retail offering will be open for subscription from Sept. 30 to Oct. 9, while the institutional offering closes a day later on Oct. 10. 

OQEP plans to use the proceeds to focus on value creation and sustainable practices in the oil and gas sector.  

Al-Azkawi reaffirmed the company’s commitment to transparency and maximizing shareholder value, noting that the offering is Shariah-compliant. 

The firm has announced a quarterly dividend policy, with the first payout of 57.7 million rial expected in December 2024.  

OQ will retain a 75 percent stake in OQEP post-IPO and has agreed to a 365-day lock-up period for the remaining shares.  

All proceeds from the sale will go to OQ, the selling shareholder, with OQEP receiving none of the funds. Completion of the IPO is subject to market conditions and regulatory approvals. 


Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting

Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting
Updated 23 September 2024
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Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting

Saudi Arabia reiterates commitments toward sustainable tourism at G20 ministers’ meeting

RIYADH: Saudi Arabia’s tourism minister has reaffirmed the Kingdom’s commitment to creating a sustainable tourism sector and utilizing it to forge closer cultural links between nations globally. 

Ahmed Al-Khateeb addressed the G20 ministers’ meeting in Brazil, confirming that bolstering the tourism sector will help countries grow their economies and allow individuals to connect culturally. 

Saudi Arabia has been making significant strides in the tourism industry since the launch of Vision 2030, with the Kingdom steadily diversifying its economy by reducing its dependence on oil. 

Affirming the nation’s progress in the field, a report released by UN Tourism in September revealed that the Kingdom has emerged as a leader in the sector, experiencing a remarkable 73 percent increase in international visitors in the first seven months of 2024 compared to 2019. 

According to the release, the country welcomed 17.5 million international tourists during the seven-month timeframe, showcasing its growing appeal as a global travel destination. 

“Saudi Arabia shares and celebrates the G20’s dedication to boost tourism growth and to put sustainability at the heart of our work,” said Al-Khateeb. 

He added: “There is more than just an economic benefit from the strides we are making to improve connectivity. They also provide the chance for people from around the world to explore the rich culture of Saudi Arabia and for our people to experience the wonders of other countries and cultures.” 

Al-Khateeb meets global leaders 

During the event in Brazil, Al-Khateeb also met with ministers and senior political figures from India, Italy, Spain, and Japan, where he discussed ways to bolster tourism between these nations and Saudi Arabia. 

“We discussed cooperation between our friendly countries and the importance of international efforts to build a prosperous and sustainable tourism future,” wrote Al-Khateeb on X.

The minister also met with Zurab Pololikashvili, secretary-general of UN Tourism, and Julia Simpson, president and CEO of the World Travel and Tourism Council. 

In addition to meeting with global leaders, Al-Khateeb joined a public-private dialogue session organized by WTTC, which analyzed the impacts of the pandemic on the tourism sector, as well as other areas including employment trends in the industry with a focus on youth and women. 

The G20 meeting in Brazil brought together tourism ministers of the group, of which Saudi Arabia is the only permanent member of the Gulf Cooperation Council, as well as 32 additional guest countries and international organizations. 

The Kingdom had approved the creation of the G20 Tourism Working Group during its presidency in 2020. This year’s meeting in Brazil also worked to finalize a report by the Working Group that details measures taken by its members to promote robust, sustainable, and balanced global tourism growth.

Saudi Arabia progresses in tourism sector

Having already surpassed the initial target of welcoming 100 million visitors, the nation aims to attract 150 million visitors by the end of this decade, aligned with the Kingdom’s National Tourism Strategy. 

The approach also aims to boost tourism’s contribution to the Kingdom’s gross domestic product from 6 percent to 10 percent by 2030. 

The latest UN Tourism report revealed that Saudi Arabia’s international tourism revenues also surged by 207 percent in the first seven months, compared to the same period in 2019. 

The country’s tourism sector is also crucial in reducing unemployment in the Kingdom, with the industry employing 925,000 people last year, of whom 45 percent were women. 

On Sept. 18, Saudi Arabia’s Crown Prince and Prime Minister, Mohammed bin Salman, inaugurated the first year of the ninth session of the Shoura Council and highlighted the progress made by the nation in various sectors, including tourism. 

“In the field of tourism, achievements preceded the target date, as the national tourism strategy, which was launched in 2019, set a target of 100 million tourists in 2030, and this target was exceeded and reached 109 million tourists in 2023,” he said. 

Another report released by Moody’s in September also highlighted that Saudi Arabia’s banking division is benefiting from the sector, as industries like tourism and construction provide attractive lending opportunities. 

In August, the Saudi Tourism Authority partnered with digital payment service provider Visa to launch a Tourism Data and Campaigns Management Hub in the Kingdom.

According to a press statement, this hub, touted to be the first of its kind in the Middle East region, is expected to accelerate the Saudi government’s efforts to the Kingdom’s tourism sector and visitor experience. 

The lab will also offer data-driven insights on travel and tourism trends, thus enabling the authority to make informed decisions to conduct campaigns and initiatives to strengthen the country’s sector.