You are here

  • Home
  • Saudi Arabia’s Industrial Production Index up 0.9%: GASTAT

Saudi Arabia’s Industrial Production Index up 0.9%: GASTAT

Saudi Arabia’s Industrial Production Index up 0.9%: GASTAT
Short Url

https://arab.news/b7gfv

Updated 10 July 2024
Arab News
Follow

Saudi Arabia’s Industrial Production Index up 0.9%: GASTAT

Saudi Arabia’s Industrial Production Index up 0.9%: GASTAT
Updated 10 July 2024
Arab News
Follow

RIYADH: Manufacturing of chemicals and food items helped drive Saudi Arabia’s Industrial Production Index up 0.9 percent in May compared to the previous month, official data showed. 

According to the General Authority for Statistics, the 0.8 percent rise in this sector helped push the index to 106.3 points in the fifth month of 2024.

Compared to April, the manufacturing of non-metallic products also increased by 0.9 percent, while the production of coke and refined petroleum products decreased by 0.4 percent during the same period. 

Saudi Arabia’s growth in the manufacturing sector is crucial to achieving the goals outlined in Vision 2030, as the Kingdom is steadily diversifying its economy by reducing its reliance on oil. 

“In the manufacturing sector, Saudi Arabia will work toward localizing renewable energy and industrial equipment sectors,” according to the Kingdom’s Vision 2030 website. 

The IPI is an economic indicator that reflects relative changes in the volume of industrial output. It is calculated based on production surveys.

However, Saudi Arabia’s overall IPI saw an annual decrease of 2.9 percent in May.

According to GASTAT, this decline in IPI was driven by a fall in mining and quarrying activities, which dropped by 9.7 percent year-on-year in May. 

This dip was attributed to Saudi Arabia’s decision to decrease its oil production to 8.9 million barrels per day in May 2024, aligned with an agreement by OPEC and its allies, known as OPEC+. 

To maintain market stability, the Kingdom reduced its oil output by 500,000 barrels per day in April 2023, and this cut has now been extended until December 2024.

“The index for oil activities in May 2024 decreased by 8.4 percent compared to the same month of the previous year due to the decline in oil production. While the index for non-oil activities increased by 12.8 percent, supported by an increase in all non-oil economic activities except for water activities,” said GASTAT in the report. 

The analysis revealed that manufacturing activities in the Kingdom witnessed a growth of 8.2 percent in May compared to the same month of the previous year, while electricity, gas, steam, and air conditioning supply operations rose by 6.6 percent during the same period.

Topics: main Industrial Production Index manufacturing chemicals

Related

Manufacturing surge boosts Saudi Arabia’s IPI to 105.6 points: GASTAT  graphic
Business & Economy
Manufacturing surge boosts Saudi Arabia’s IPI to 105.6 points: GASTAT 

Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
Updated 13 November 2024
Arab News
Follow

Number of active mining licenses in Saudi Arabia reaches 2,295

Number of active mining licenses in Saudi Arabia reaches 2,295
  • The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion
Updated 13 November 2024
Arab News

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 35 new mining licenses in September, the Saudi Press Agency reported on Wednesday citing the National Center for Industrial and Mining Information.

These permits included 24 exploration licenses, seven quarry licenses for building materials, three reconnaissance licenses, and 1 mining exploitation and small mine license.

Official spokesperson for the ministry, Jaraah bin Mohammed Al-Jaraah, explained that by the end of September 2024, the total number of active mining licenses in the sector had reached 2,295. The majority of these licenses are quarry licenses for building materials, with 1,461 issued, followed by 566 exploration licenses, 203 mining exploitation and small mine licenses, 42 prospecting licenses, and 23 surplus mineral resource licenses.

Al-Jaraah emphasized that the Ministry of Industry and Mineral Resources is focused on protecting and enhancing the value of the mining sector in alignment with Saudi Arabia’s Vision 2030. The goal is to transform mining into the third pillar of the national industry and leverage the Kingdom’s vast mineral wealth, estimated at around SR9.3 trillion.

Topics: Saudi Ministry of Industry and Mineral Resources Mining licenses Saudi mining

Related

Mining industry accelerates decarbonization with AI and tech investments: KPMG report
Business & Economy
Mining industry accelerates decarbonization with AI and tech investments: KPMG report
Saudi Arabia awards 11 mining exploration permits under accelerated program
Business & Economy
Saudi Arabia awards 11 mining exploration permits under accelerated program

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market
Updated 13 November 2024
Nadin Hassan
Follow

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Saudi Arabia’s CMA approves regulatory changes to strengthen debt market
Updated 13 November 2024
Nadin Hassan

RIYADH: Saudi Arabia’s Capital Market Authority has approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

These changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

“By facilitating the listing requirements for debt instrument, we are increasing the attractiveness of the local debt capital market to drive increased participation from issuers and investors,” Mohammed Al-Rumaih, CEO of the Saudi Exchange, said.

The amendments to the listing rules of debt instruments mark a significant milestone in the continued development of Saudi Arabia’s debt capital market, further reinforcing our commitment to building a globally competitive and sophisticated debt capital market.”

The reforms aim to strengthen Saudi Arabia’s regulatory framework for debt instruments, creating a more dynamic and accessible market. Notably, the amendments allow the Kingdom’s development funds, sovereign wealth funds, and development banks to issue debt instruments through exempt offerings, subject to specific conditions.

This flexibility will enable these institutions to better align their financing strategies with Saudi Arabia’s broader development goals.

“As we move forward, the Saudi Exchange remains focused on providing a robust platform for debt financing that supports the Kingdom’s Vision 2030 ambitions, specifically the Financial Sector Development Program aspirations in deepening the debt capital market,” Al-Rumaih said.

The new regulations also simplify the documentation process for public offerings, reducing prospectus requirements by more than 50 percent.

A dedicated section for public offerings will improve regulatory clarity, ensuring that all material information is disclosed to investors while maintaining investor protection.

In addition to easing public offering requirements, the changes introduce more flexibility for private offerings. The CMA has eliminated the prior requirement for advance notification before launching an offering.

Issuers can now notify the CMA and immediately proceed with their offerings, a change that is expected to expedite the financing process and improve efficiency.

These regulatory enhancements are part of Saudi Arabia’s broader efforts to develop its sukuk and debt markets as a crucial funding channel for businesses.

By improving access to financing, the reforms are expected to drive greater economic growth and help position the sukuk and debt markets as central components of the Kingdom’s financial ecosystem.

The reforms align with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the economy and enhance the capital markets. They also reflect the CMA’s ongoing commitment to improving market transparency, protecting investors, and increasing market participation.

In parallel, the CMA recently invited public feedback on amendments to the investment funds regulations, which are also part of efforts to refine the framework for private and foreign investment funds, particularly in retail markets. These changes aim to better protect retail investors, addressing risks that emerged from a 2021 regulation allowing individual retail investments up to SR200,000 ($53,245).

The consultation period for these proposed changes will run for 30 calendar days.

With these far-reaching regulatory reforms, Saudi Arabia is poised to further strengthen its sukuk and debt markets, positioning them as key drivers of economic growth and investment. The CMA’s efforts to enhance transparency and investor protection are expected to boost both domestic and international confidence in the Kingdom’s financial markets.

Topics: CMA Sukuk Debt market bonds

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors
Updated 13 November 2024
REEM WALID 
Follow

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors

Saudi PIF to offer 2% of Saudi Telecom Co. shares to investors
  • Goldman Sachs Saudi Arabia and SNB Capital are acting as joint global coordinators and bookrunners for PIF
  • Remaining shares held by PIF represent 62% of the firm’s issued share capital
Updated 13 November 2024
REEM WALID 

RIYADH: Saudi Arabia’s Public Investment Fund has announced the offering of 2 percent of its Saudi Telecom Co.’s stake, amounting to 100 million shares, to qualified institutional investors locally and globally.

Goldman Sachs Saudi Arabia and SNB Capital, acting as joint global coordinators and bookrunners for PIF, announced that the share price, or offer rate, would be determined through an accelerated book-building process, according to a statement on the Saudi Stock Exchange.

This falls in line with PIF’s vision, which has about $925 billion assets under management, of becoming a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia.

The Tadawul statement said that following the completion of the offering, the remaining shares held by PIF in the company, representing 62 percent of the firm’s issued share capital, will be subject to a 90-day contractual lock-up undertaking.

The company will not receive any proceeds from the issuance, and the offering will not dilute the shares of the organization’s additional shareholders.

The statement also said that the final number of offer shares, price, and results will be announced by Nov. 14. 

The sale will be executed through off-market negotiated deals on Nov. 14 before market opening, under the Negotiated Deals Framework stipulated under the Trading and Membership Procedures issued by the Saudi Exchange.

The offering will be available to institutional investors within the Kingdom, qualified foreign institutional backers in line with the Rules for Foreign Investment in Securities, and institutional beneficiaries of swap agreements made with a Capital Market Authority-authorized person to trade shares on the Saudi Exchange on their behalf. 

It will also be open to Gulf Cooperation Council investors, including companies and funds authorized to trade in Saudi shares.

Topics: Saudi Arabia's Public Investment Fund (PIF) Saudi Arabia Saudi Telecom Co. (STC) PIF STC

Related

PIF’s EV maker Ceer secures advanced drive systems through new partnership 
Business & Economy
PIF’s EV maker Ceer secures advanced drive systems through new partnership 
Saudi Arabia’s PIF to acquire 54% stake in MBC Group
Business & Economy
Saudi Arabia’s PIF to acquire 54% stake in MBC Group

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
Updated 13 November 2024
Nadin Hassan
Follow

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%

Closing Bell: Saudi Arabia’s TASI closes in red, down 0.97%
  • MSCI Tadawul 30 Index declined 15.60 points to close at 1,500.54 points
  • Parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points
Updated 13 November 2024
Nadin Hassan

RIYADH: The Tadawul All Share Index in Saudi Arabia concluded Wednesday’s trading session at 11,930.45 points, marking a decrease of 117.22 points or 0.97 percent. 

MSCI Tadawul 30 Index also declined 15.60 points to close at 1,500.54 points, a 1.03 percent decrease. 

The parallel market Nomu closed the day at 29,205.53 points, reflecting an increase of 95.12 points, or 0.33 percent.

TASI reported a trading volume of SR5.540 billion ($1.474 billion), with 52 stocks gaining and 178 falling.

The best-performing stock was Shatirah House Restaurant Co., whose share price surged 10 percent to SR20.24.  

Other top performers include Saudi Cable Co. and Alkhaleej Training and Education Co., whose share prices soared by 5 percent and 4.08 percent to SR88.20 and SR30.60, respectively.

Other top performers include Bawan Co. and Middle East Specialized Cables Co.

The worst performer was Ash-Sharqiyah Development Co., whose share price dropped by 5.18 percent to SR19.40.

Other worst performers were United International Transportation Co. and National Medical Care Co., whose share prices dropped by 3.87 percent and 3.33 percent, respectively, to stand at SR79.50 and SR168.60.

Saudi Tadawul Group Holding Co. was another worst performer, whose share price dropped by 3.08 percent to SR232.60.   

On the parallel market Nomu, Leaf Global Environmental Services Co. was the top gainer, with its share price surging by 8.68 percent to SR98.90.

Other top gainers on the parallel market were Fad International Co. and Al Mohafaza Co. for Education, with their share prices surging by 7.24 percent and 6.04 percent to reach SR81.50 and SR28.10, respectively.

Rawasi Albina Investment Co. and Amwaj International Co. were the other top gainers on Nomu.

Al-Razi Medical Co. was the major loser on this market, as the company’s share price slipped by 7.98 percent to SR47.85.  

First Avenue for Real Estate Development Co. and Obeikan Glass Co. were other major losers on Nomu, with share prices dropping by 6.18 percent and 6.01 percent, reaching SR8.35 and SR49.25, respectively.

Topics: Closing Bell Saudi stock exchange Tadawul All Share Index (TASI)

Related

Closing Bell: Saudi main index slips to 12,048
Business & Economy
Closing Bell: Saudi main index slips to 12,048
Closing Bell: Saudi main index gains, closes at 12,106 points  
Business & Economy
Closing Bell: Saudi main index gains, closes at 12,106 points  

GCC banks to remain resilient in 2025 despite anticipated rate cuts: S&P Global

GCC banks to remain resilient in 2025 despite anticipated rate cuts: S&P Global
Updated 13 November 2024
NOUR EL-SHAERI   
Follow

GCC banks to remain resilient in 2025 despite anticipated rate cuts: S&P Global

GCC banks to remain resilient in 2025 despite anticipated rate cuts: S&P Global
  • S&P Global predicts a manageable impact on bank margins
  • GCC banking sector’s strong efficiency provides solid foundation for continued growth and resilience through 2025
Updated 13 November 2024
NOUR EL-SHAERI   

RIYADH: Banks in the Gulf Cooperation Council region are expected to maintain strong asset quality, profitability, and ample liquidity through 2025, according to a new report by S&P Global.  

The global credit rating agency highlighted the robust performance of the region’s banking sector, which it attributes to solid capitalization and well-managed balance sheets, despite potential challenges from lower interest rates.  

S&P Global said that while the outlook for GCC banks remains positive, heightened geopolitical risks or a sharp drop in oil prices could pose threats to their creditworthiness. However, the agency added that the banks are likely to demonstrate resilience in the face of such adverse scenarios, reflected in their currently high ratings. 

The report forecasts that Brent crude oil will average $75 per barrel from the fourth quarter of the year through 2027, supporting GCC economies.  

“In our view, GCC countries will also benefit from the implementation of economic transformation projects (in Saudi Arabia), the expansion of gas production (in Qatar), reform implementations (in Bahrain and Oman), and the non-oil economy’s good performance (in Bahrain and the UAE),” the report said.
 
Despite expected interest rate cuts by the US Federal Reserve, and mirrored reductions by GCC central banks, S&P Global predicts a manageable impact on bank margins.  

The decline in rates could reduce funding costs and mitigate unrealized losses in securities portfolios, with an estimated margin impact ranging from 20-60 basis points, depending on the country. 

GCC banks maintain strong capitalization levels, which continue to underpin their overall creditworthiness, according to the report.  

Shareholder support has been a key factor, with dividend payouts generally below 50 percent, allowing banks to retain profits and stabilize their capital positions. 

The quality of capital remains robust, with limited reliance on hybrid instruments. However, S&P Global anticipates an increase in hybrid issuance by GCC banks over 2025-2026, as institutions seek to take advantage of lower interest rates and address the first call dates of previously issued instruments. 

“GCC banks are mainly funded by domestic deposits, which have proved stable through periods of mild stress, such as the COVID-19 pandemic and previous instances of geopolitical risk,” the report added. 

It also outlined potential risks stemming from ongoing regional conflicts. 

S&P Global conducted stress tests on GCC banks, analyzing scenarios ranging from modest to severe geopolitical escalations.  

In severe cases, involving broader regional conflict and disruptions to trade routes, the impact could extend to energy prices and macroeconomic stability, affecting both sovereign and banking sector credit metrics. 

S&P Global said despite these challenges, the GCC banking sector’s strong efficiency, driven by low labor costs and increasing digitalization, provides a solid foundation for continued growth and resilience through 2025. 

Topics: Gulf Cooperation Council (GCC) gulf banks S&P Global Ratings S&P Global

Related

Business activities strengthen in UAE, Kuwait and Qatar: S&P Global
Business & Economy
Business activities strengthen in UAE, Kuwait and Qatar: S&P Global
GCC banks capable of handling potential funding outflows: S&P Global
Business & Economy
GCC banks capable of handling potential funding outflows: S&P Global

Latest updates

French prosecutors demand Marine Le Pen be barred from office in fake jobs trial
French prosecutors demand Marine Le Pen be barred from office in fake jobs trial
Where We Are Going Today: ‘Scott’s’ at VIA Riyadh
Where We Are Going Today: ‘Scott’s’ at VIA Riyadh
Riyadh governor receives Albania’s envoy
Riyadh governor receives Albania’s envoy
Israel’s ban on UN agency for Palestinian refugees will have ‘catastrophic consequences’
Israel’s ban on UN agency for Palestinian refugees will have ‘catastrophic consequences’
Greek, Turkish coast guards to boost cooperation against migrant smuggling
Greek, Turkish coast guards to boost cooperation against migrant smuggling

Search form

Print Edition
Read pdf version Subscribe now
© 2024 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.