RIYADH: The volume of minerals and goods transported by Saudi Arabia Railways reached 6.34 million tonnes during the first quarter of 2024, an annual increase of 9 percent.
According to its quarterly report, SAR stated that over 2.7 million passengers utilized its services, marking a 23 percent growth compared to same period last year.
Passenger rides also increased by 3 percent, reaching a total of 8,252 trips across the East Train, North Train, and Haramain Express train networks.
The surge in the total volume of minerals and goods has helped reduce the number of truck trips on the country’s roads by more than 500,000, leading to improved traffic safety, less wear and tear on road infrastructure, and lower carbon emissions.
Bashar bin Khaled Al-Malik, CEO of SAR, affirmed on X, that these outcomes highlight the growing demand for distinguished railway transportation services, known for being among the most reliable, safe, and eco-friendly modes of travel.
He further noted that SAR is steadily progressing toward achieving its national strategic goals, initiating several pioneering and distinctive future projects during the first quarter of 2024. This includes the signing of the luxury “Desert Dream” train agreement, a first in the Middle East and North Africa, as reported by the Saudi Press Agency.
Additionally, Al-Malik disclosed that the train is slated to commence its inaugural trips by the end of 2025. He elaborated that SAR has connected the logistics zone to the second industrial city in Dammam to the railway network.
This connection will provide access to King Abdulaziz Port in Dammam, the Riyadh Dry Port, as well as the ports of Jubail and Ras Al-Khair.
Furthermore, in February, SAR inked two memorandums of understanding with the Saudi Authority for Industrial Cities and Technology Zones, also known as Modon.
This collaboration with the National Industrial Development and Logistics Program aims to strengthen supply chains in the central and eastern regions, enhancing product access to local, regional, and global markets.
During the same month, SAR finalized a contract with Stadler, a Swiss rail vehicle manufacturer, to acquire 10 new passenger trains for the East Train network.
The deal will increase the number of passengers using the transport system in the region to 3.8 million a year. This will enable the operation of direct “Express” trips from Riyadh to Dammam to meet the escalating demand for trips between the two primary cities in the Kingdom.
Arab stock markets show mixed performance in Feb. amid global uncertainty, geopolitical tensions
Updated 18 sec ago
Miguel Hadchity
RIYADH: Arab financial markets showed a mixed performance in February, influenced by global economic uncertainties, geopolitical tensions, and fluctuating investor sentiment, according to a new report.
The latest monthly bulletin released by the Arab Monetary Fund revealed that the composite index for these exchanges recorded a slight decline of 0.06 percent at the end of February.
Arab stock markets did start 2025 on a strong note, buoyed by global gains, with the AMF’s January report citing improved investor sentiment and an international market rebound as driving a 0.97 percent increase in the composite index by month-end.
This momentum faltered in February, with seven exchanges recording losses, compared to just three the previous month.
Despite short-term volatility, the report indicated that investors remain cautiously optimistic about Arab markets.
The best-performing markets included Bahrain, which recorded a 4.3 percent increase, followed by Kuwait and Tunisia.
Meanwhile, Saudi Arabia and Palestine were among the worst-hit, registering losses of 2.45 percent and 2.37 percent, respectively.
Morocco’s Casablanca Stock Exchange and Egypt’s EGX30 also recorded gains.
On the downside, Qatar, Muscat, and Amman experienced declines, along with Iraq.
Saudi Stock Exchange was among those impacted by global economic trends. File
Abu Dhabi’s index dipped slightly by 0.11 percent, reflecting mixed sentiment among investors.
The report provided a detailed breakdown of market performance, trading volumes, sectoral trends, and the macroeconomic factors influencing Arab financial markets.
Market liquidity took a significant hit, with trading volumes plummeting by 26.73 percent across exchanges.
The overall market capitalization of Arab stock exchanges contracted by 1.53 percent, shedding approximately $67.56 billion by the end of February.
The Kingdom experienced the most significant setback, contributing a 1.66 percent decline to the overall market cap, while Bahrain led gains with a 4.27 percent increase.
The decline in trading volume was widespread, with eight exchanges experiencing reduced activity. The value of traded shares also dropped by 8.64 percent in February compared to January.
Notably, Bahrain and Muscat experienced significant increases in trading value at 6,888.38 percent and 211.39 percent.
Egypt and Saudi Arabia suffered major declines of 29.07 percent and 19.73 percent, with Palestine seeing the most drastic fall at 69.15 percent.
Global pressures weigh on performance
The underperformance of some Arab exchanges was largely aligned with global trends, as major international indices such as the Dow Jones, Nasdaq, and Japan’s Nikkei posted losses.
European markets saw mixed results, with the CAC 40 and FTSE 100 showing slight gains, while the MSCI Emerging Markets Index for Latin America and Asia declined.
Financial markets worldwide experienced volatility due to a combination of factors, including rising US tariffs, ongoing supply chain disruptions, and increasing trade tensions with China, Canada, and Mexico.
According to the report, the escalating geopolitical conflict between Russia and Ukraine further dampened investor sentiment. Concerns about slowing global economic growth and inflationary pressures also contributed to market instability.
Sectoral performance and economic policies
Sector-wise, financials, consumer services, and telecommunications were among the key drivers of gains in Kuwait, Dubai, and Egypt. The real estate and industrial sectors also performed well, supporting the upward momentum in select exchanges.
Conversely, energy and technology stocks struggled, especially in Saudi Arabia and Qatar, as oil price volatility persisted and investor uncertainty increased due to global supply concerns.
Oil prices remained under pressure due to increased supply and concerns over demand fluctuations, negatively impacting energy-linked equities in several Arab markets. Meanwhile, commodity markets also saw sharp fluctuations, impacting investor appetite for riskier assets.
Monetary policies in Arab economies also saw adjustments, with several central banks lowering interest rates to stimulate economic growth. Saudi Arabia, the UAE, and Qatar implemented minor rate cuts, reflecting a broader effort to maintain economic stability amid global headwinds.
Egypt raised its interest rate in an effort to curb inflationary pressures and stabilize its currency.
Interest rate shifts were also observed globally, with the US Federal Reserve maintaining a cautious stance, while Japan adjusted its rates upward slightly.
China, the eurozone, and India saw minor rate reductions to counter slowing economic momentum.
In contrast, Russia increased its interest rate in response to inflationary pressures, while Argentina and Turkiye made substantial cuts, bringing their rates down to 29 percent and 45 percent, respectively.
Cautious optimism amid risks
Easing inflationary pressures and expectations of a stabilization in oil prices could provide a more favorable environment in the coming months, according to the report.
External risks such as US monetary policy shifts, further trade restrictions, and geopolitical instability, however, will continue to influence market movements.
Market participants are closely monitoring fiscal policies and government spending initiatives in key Arab economies, as these factors will play a role in determining future investment flows and stock market performance. The trend of central banks adjusting monetary policies to counter inflation and economic slowdown is expected to continue shaping market sentiment.
The real estate and financial sectors remain a stronghold for investors, with banks showing resilience amid shifting interest rate policies.
The energy sector remains vulnerable to external pressures, however, particularly as oil supply concerns persist, the report stated.
China holds key position in Aramco’s investment strategy, CEO tells Beijing forum
Updated 47 min 56 sec ago
Nirmal Narayanan
RIYADH: Energy giant Saudi Aramco sees China as one of its key global investment destinations, with ongoing efforts to explore further opportunities across the power generation, chemicals, and technology sectors, according to its CEO.
Speaking at the China Development Forum in Beijing, Amin Nasser emphasized his company’s three-decade-long partnership with the Asian country and its commitment to future growth and innovation.
This comes as Aramco expands into new markets, including China, driven by the nation’s industrial growth, rising energy demand, and push for energy security.
In his speech, Nasser said: “In China, Aramco is actively supporting energy and chemical feedstock security by investing in multiple downstream projects. In fact, China is among our key investment destinations.”
He highlighted current investments in Fujian, Liaoning, Zhejiang, and Tianjin, adding, “I emphasize ‘currently’ because we are continuing to identify additional opportunities, which include energy and chemicals, as well as technology.”
Nasser also highlighted China’s role in the global economy, describing it as the world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand.
“China is becoming a major hub for the entire chemicals industry value chain, which will be critical to industries of the future. China occupies a key position in Aramco’s global strategy,” he said.
Aramco, as a long-term investor, is excited about the expanding opportunities in China, with Nasser expressing the company’s intent to elevate its relationship with the country.
He underscored the importance of reliable oil and gas supply to China’s economic growth, predicting a shift in oil demand from light transport to petrochemicals due to rising demand for plastics, synthetic fibers, and advanced materials.
“A reliable supply of these materials will be essential to China’s high-quality critical growth industries – including wind and solar energy, automotive, aerospace, and construction,” he added.
In November, Aramco — in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co. — began construction on a refinery and petrochemical complex in China’s Fujian province.
At the time, the Saudi company said in a press statement that the facility would be fully operational by the end of 2030, featuring a 320,000-barrel-per-day oil refinery.
The complex will also include a 1.5 million-tonnes-per-year ethylene unit, a 2 million-tonne paraxylene unit with downstream derivatives capacity, and a 300,000-tonne crude oil terminal.
LONDON: Oil prices slipped on Monday as investors assessed the outlook for ceasefire talks aimed at ending the Russia-Ukraine war, which could lead to an increase in Russian oil to global markets.
Brent crude futures were down 25 cents, or 0.4 percent, at $71.91 a barrel by 7:09 a.m. Saudi time. US West Texas Intermediate crude fell 20 cents, or 0.3 percent, to $68.08.
Both benchmarks settled higher on Friday and recorded a second consecutive weekly gain as fresh US sanctions on Iran and the latest output plan from the OPEC+ producer group raised expectations of tighter supply.
A US delegation will seek progress toward a Black Sea ceasefire and a broader cessation of violence in the war in Ukraine when it meets for talks with Russian officials on Monday, after discussions with diplomats from Ukraine on Sunday.
“Expectations of progress in peace negotiations between Russia and Ukraine and a potential easing of US sanctions on Russian oil pressured prices lower,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“But investors are holding back on large positions as they evaluate future OPEC+ production trends beyond April,” he added.
OPEC+ — the Organization of the Petroleum Exporting Countries and allies including Russia — on Thursday issued a new schedule for seven member nations to make further oil output cuts to compensate for pumping above agreed levels, which will more than overtake the monthly production hikes the group plans to introduce next month.
“Ukraine-Russia ceasefire talks raise the prospects of increased Russian exports on an eventual resolution, while the OPEC+ production hike as early as April points to further supply additions, which may be difficult to be fully absorbed by demand factors,” said Singapore-based IG strategist Yeap Jun Rong.
OPEC+ has been cutting output by 5.85 million barrels per day, equal to about 5.7 percent of global supply, agreed in a series of steps since 2022 to support the market.
It confirmed on March 3 that eight of its members would proceed with a monthly increase of 138,000 bpd from April, citing healthier market fundamentals.
Market participants are also monitoring the impact from new Iran-related US sanctions announced last week.
Market sentiment toward oil prices has improved recently given heightened supply risks stemming from US sanctions on Iranian exports and some optimism that US reciprocal tariffs may be less severe than feared, though the broader demand-supply outlook still remains mixed, IG’s Yeap said.
Iranian oil shipments to China are set to fall in the near-term after new US sanctions on a refiner and tankers, driving up shipping costs, but traders said they expect buyers to find workarounds to keep at least some volume flowing.
Closing Bell: Saudi main index edges down to close at 11,694
Updated 23 March 2025
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 65.55 points, or 0.56 percent, to close at 11,694.77.
The total trading turnover of the benchmark index was SR2.64 billion ($704 million), as 85 of the stocks advanced and 155 retreated.
On the other hand, the Kingdom’s parallel market, Nomu, gained 13.93 points, or 0.05 percent, to close at 30,535.46. This comes as 36 stocks advanced while 48 retreated.
The MSCI Tadawul Index lost 10.73 points, or 0.72 percent, to close at 1,479.47.
The best-performing stock was Al-Babtain Power and Telecommunication Co., whose share price surged 9.98 percent to SR46.30.
Other top performers included Alujain Corp., whose share price rose 8.65 percent to SR37.70, as well as Arriyadh Development Co., whose share price surged 6.05 percent to SR34.20.
Naseej International Trading Co. recorded the most significant drop, falling 9.58 percent to SR84.
Al-Rajhi Co. for Cooperative Insurance also saw its stock prices fall 4.63 percent to SR136.
Banan Real Estate Co. also saw its stock prices decline 4.31 percent to SR6.22.
On the announcements front, Tam Development Co. declared its annual financial results for the year ending on Dec. 31, 2024. According to a Tadawul statement, the firm reported a net profit of SR30.13 million in 2024, reflecting a 25.77 percent drop compared to 2023.
The decrease in net profit is primarily attributed to delays in government project awards and budget reviews in the first half of 2024 which affected contract pricing revenue recognition and utilization rates as well as strategic investments in talent acquisition and competitive pricing to secure new logo accounts temporarily compressing margins.
The drop was also linked to higher general and administrative expenses which increased 39 percent due to workforce expansion to support growth.
Tam Development Co. ended the session at SR175.80, down 6.02 percent.
Riyadh Steel Co. has also announced its annual financial results for the year, which ended on Dec. 31, 2024. A bourse filing revealed that the company reported a net profit of SR1.99 million in 2024, reflecting an 82.06 percent drop compared to 2023. This decline is owed to a reduction in selling prices, a decrease in other income, and higher expenses in comparison to the previous year.
Riyadh Steel Co. ended the session at SR2.01, down 0.49 percent.
Middle East Pharmaceutical Industries Co. has announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR79.85 million in 2024, reflecting a 21.3 percent drop compared to 2023.
This increase in net profit is primarily attributed to strong revenue growth and a higher gross profit margin, driven by product mix diversification and economies of scale from increased production. Nevertheless, the gain in gross profit was partially offset by higher selling, distribution, and general administrative expenses, which were largely due to ongoing investments in marketing, talent acquisition, and other growth-related initiatives.
Middle East Pharmaceutical Industries Co. ended the session at SR135.40, down 1.34 percent.
Alandalus Property Co. also announced its annual financial results for the year ending Dec. 31, 2024.
A bourse filing revealed that the company reported a net loss of SR31.6 million in 2024, down from an SR36.42 million net profit in 2023. This decline is primarily attributed to a decrease in operating profit resulting from operational losses incurred by some affiliated companies, particularly West Jeddah Hospital, due to the opening and commencement of operations at Dr. Sulaiman Al-Habib Medical Hospital in Jeddah at the end of the first quarter of 2024, along with recorded losses in Al-Jawhara Al-Kubra Co. The net loss is also linked to an increase in general and administrative expenses along with a 31 percent surge in financing costs compared to the previous year.
Alandalus Property Co. ended the session at SR23.00, down 1.13 percent.
Public firms listed on Muscat bourse report 52.6% surge in profits
Updated 23 March 2025
Reem Walid
RIYADH: The net profits of public joint companies listed on the Muscat Stock Exchange surged 52.6 percent year on year to reach 1.339 billion Omani rials ($3.48 billion) in 2024.
This increase coincided with the listing of OQ Exploration and Production and OQ Base Industries in 2024, while energy companies recorded improved performance, with some moving from losses to profits, the Oman News Agency reported.
This falls in line with strong growth in Arab stock exchanges in 2024, where trading values surged 58.1 percent to surpass $1.03 trillion.
It also aligns with a 21.3 percent increase in regional trading volumes and a 35.9 percent rise in the number of trades during the year, reflecting a dynamic financial landscape with varied market performances.
Statistics from the Oman News Agency, based on preliminary financial results for around 90 public joint-stock firms with fiscal years ending in December, revealed improved performance across most companies in the banking, industrial, investment, service, and telecommunications sectors.
The data further showed that the total number of companies that reported profits last year was 69, compared to 68 entities that reported profits in 2023, excluding the financial results of funds and firms that were not listed on the stock exchange during 2023.
The figures also indicated that OQ Exploration and Production topped the list of companies with the highest net profits, totaling 326.5 million rials.
Bank Muscat came in second with 225.5 million rials, followed by Sohar International Bank, which came in third with 100.2 million rials.
Omantel ranked fourth after recording net profits at the local level of 69.4 million rials. The National Bank of Oman placed fifth with net profits of approximately 63.1 million rials, followed by OQ Gas Networks, which came in sixth with 47.8 million rials.
The data further showed that Bank Dhofar placed seventh with 43.6 million rials, while Ahli Bank ranked eighth with 41.6 million rials.
Ominvest placed ninth with net profits of an estimated 35.9 million rials, while Oman Arab Bank ranked tenth with net profits of 30.4 million rials.
Preliminary data showed that the losses recorded by public joint-stock companies decreased last year to around 38.1 million rials, compared to losses of 50.6 million rials in 2023. However, the number of firms recording losses last year jumped to 21, compared to 20 companies that recorded setbacks in 2023.
Last year, five companies flipped from losses to profits, including SMN Power Holding, which reported group net profits of 4.5 million rials in 2024, up from 6.4 million rials in 2023. Sohar Power Co. also posted net profits of about 22 million rials, compared to 5.1 million rials the previous year.
Conversely, six companies turned from profits to losses, most notably Leva Group, which recorded losses of 5 million rials in 2024, compared to net profits of 6.3 million rials in 2023, and Oman Refreshments, which recorded group losses of 2.7 million rials last year, compared to a net profit of 6.3 million rials in 2023.
Galfar Engineering and Contracting also recorded a group loss of 3.9 million rials in 2024, compared to a profit of 574,000 rials in 2023.
