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Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn

Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier. File
Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier. File
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Updated 04 August 2024
Arab News
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Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn

Saudi Arabia’s non-oil merchandise exports to GCC reach $2.9bn
  • Merchandise imports from GCC countries saw a modest rise from SR6.03 billion to SR6.24 billion
  • Kingdom’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier
Updated 04 August 2024
Arab News
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RIYADH: Saudi Arabia’s total non-oil merchandise exports to Gulf Cooperation Council countries reached SR10.99 billion ($2.9 billion) in May, a significant increase from SR8.43 billion in the same month last year.

According to preliminary data from the General Authority for Statistics, during this period, merchandise imports from GCC countries saw a modest rise from SR6.03 billion to SR6.24 billion.

As a result, Saudi Arabia’s non-oil trade balance with the GCC saw a notable improvement, climbing to SR4.74 billion in May from SR2.40 billion a year earlier.

The UAE continued to be Saudi Arabia’s largest non-oil trading partner within the GCC. Non-oil exports from the UAE to Saudi Arabia grew from SR4.90 billion in May 2023 to SR6.07 billion this year. Imports from the UAE also increased, rising from SR3.63 billion to SR4.54 billion. This led to an improved trade balance with the UAE of SR1.52 billion, up from SR1.26 billion last year.

Kuwait, however, experienced a decrease in its trade balance with Saudi Arabia, dropping from SR1.26 billion in May 2023 to SR571.4 million this year. This decline was largely due to a significant drop in re-exports, which fell from SR898.2 million to SR147.6 million, alongside a slight reduction in imports from SR158.5 million to SR114.6 million.

Oman saw a substantial improvement in its trade deficit with Saudi Arabia, narrowing to a deficit of SR239.3 million in May from SR887.1 million the previous year. This positive shift was driven by an increase in Omani exports to Saudi Arabia, which rose to SR384.4 million from SR289.8 million, coupled with a reduction in imports to SR623.7 million from SR1.18 billion.

Bahrain achieved a significant increase in its trade surplus with Saudi Arabia, reaching SR2.83 billion in May, up from SR555.2 million the previous year. This improvement was due to a dramatic rise in re-exports from Bahrain, which surged from SR1.16 billion to SR3.36 billion, while imports decreased from SR922.1 million to SR795.6 million.

In contrast, Qatar’s trade balance with Saudi Arabia declined, falling from SR204.9 million in May 2023 to SR56.9 million this year. This decline was attributed to a reduction in Qatari exports to Saudi Arabia, which fell to SR223.2 million from SR344.4 million, while imports from Qatar increased slightly to SR166.3 million from SR139.4 million.

Topics: main Saudi Arabia Gulf Cooperation Council (GCC) non-oil exports non-oil trade

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Closing Bell: Saudi main market sheds points, Nomu gains 2.8% 

Closing Bell: Saudi main market sheds points, Nomu gains 2.8% 
Updated 29 sec ago
Nour El-Shaeri 
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Closing Bell: Saudi main market sheds points, Nomu gains 2.8% 

Closing Bell: Saudi main market sheds points, Nomu gains 2.8% 
Updated 29 sec ago
Nour El-Shaeri 

RIYADH: Saudi Arabia’s Tadawul All Share Index ended Monday’s trading session in the red, losing 8.95 points, or 0.07 percent, to close at 12,039.31. 

The total trading value of the benchmark index was SR6.1 billion ($1.6 billion), with 66 listed stocks advancing, while 166 retreated. 

The MSCI Tadawul Index also shed 0.34 points, or 0.02 percent, closing at 1,512.48. 

However, the Kingdom’s parallel market Nomu gained 765.32 points, or 2.80 percent, to close at 28,062.77, with 41 stocks advancing and 32 retreating. 

The best-performing stock of the day was Shatirah House Restaurant Co., also known as Burgerizzr, whose share price surged by 9.96 percent to SR22.52.  

Other top performers included Retal Urban Development Co., which saw a rise of 9.64 percent to SR15,70, and Al-Baha Investment and Development Co., which increased by 7.14 percent to SR0.30. 

Elm Co. and Al-Baha Investment and Development Co. also recorded gains of 4.64 percent and 4.29 percent, closing at SR1,122 and SR21.90, respectively. 

Several Saudi firms released their financial results for the first nine months of the year. 

Saudi Telecom Co. recorded a 3.9 percent yearly increase in profit to reach SR56.6 billion, mainly attributed to the rise in stc KSA and stc’s subsidiaries revenue by 0.6 percent and 11 percent, respectively. 

Net profit also recorded growth of 1.9 percent to reach SR11.2 billion, largely driven by the increase in revenue and the decrease in zakat and income tax expenses. 

The company closed Monday’s trading session in green with a 0.59 percent increase in its share price to reach SR42.30.

National Gas and Industrialization Co. also saw a significant 15.5 percent year-on-year increase in revenue to reach SR2 billion in the first nine months. 

The growth in profit was driven primarily by rising gas prices and an uptick in sales volume. This shift is further supported by enhanced revenues from commercial projects and increased sales of empty cylinders. 

Additionally, the company has witnessed gains from the sale of scrap and spare parts, as well as from transportation and various other services. 

The firm also reported an increase in net profit by 2.1 percent to reach SR188.7 million, primarily driven by a significant rise in gross profit resulting from enhanced revenues and a reduction in zakat expenses. 

Despite this, the company closed Monday’s trading session in red, shedding 2.21 percent to close at SR106.

Bupa Arabia for Cooperative Insurance Co. also recorded significant gains. The company saw insurance revenues increase by 15 percent to reach SR13.4 billion, driven by business growth.

Profit before zakat and income tax attributable to shareholders for the current period amounted to SR1.3 billion, an increase of 31.4 percent, mainly due to gains across multiple aspects of the business.

Despite the strong gains, Bupa closed Monday’s trading session in red, shedding 1.49 percent to close at SR198.20.

On a different note, SNB Capital launched its SNB Capital Saudi Nomu Market Fund to facilitate easier access to the parallel market.

The fund is designed for retail investors aiming to strategically invest in the listed equities on the Nomu market without having to meet the Qualified Investor criteria. 

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

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Saudi airline flynas expands African reach with new routes to Uganda and Djibouti

Saudi airline flynas expands African reach with new routes to Uganda and Djibouti
Updated 14 min 47 sec ago
Mohammed Al-Kinani 
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Saudi airline flynas expands African reach with new routes to Uganda and Djibouti

Saudi airline flynas expands African reach with new routes to Uganda and Djibouti
Updated 14 min 47 sec ago
Mohammed Al-Kinani 

JEDDAH: Saudi budget airline flynas will add two new African destinations to its network starting in January 2025, aligning with its broader expansion strategy across the continent. 

Beginning Jan. 8, the airline will operate three weekly flights from Riyadh to Entebbe, Uganda, and the same number from Jeddah to Djibouti, according to the airline’s statement. 

The expansion is part of the airline’s “We Connect the World to the Kingdom” initiative and supports Saudi Arabia’s National Civil Aviation Strategy, which aims to expand connectivity to 250 international destinations and reach 330 million passengers. 

The routes to Entebbe and Djibouti also align with Saudi Arabia’s goal of welcoming 150 million tourists annually by 2030 and advancing the Pilgrims Experience Program, which seeks to streamline travel access to the holy cities of Makkah and Madinah. 

The airline’s new routes to Uganda and Djibouti mark additional steps in its effort to grow its international network, offering more accessible travel for passengers across the region. 

This announcement follows flynas’s recent increase in domestic seat capacity by over 480,000 on routes to Taif, Abha, and Al-Baha during the summer, marking a 21 percent rise from the previous year. 

The airline has also expanded its fleet with the arrival of its 53rd A320neo in July as part of its ongoing order of 120 Airbus aircraft. 

The new model airplane arrived at King Khalid International Airport in Riyadh, reinforcing flynas’s position as a prominent low-cost airline in the Middle East and ranking among the top four globally. 

During the UK’s Farnborough International Airshow in July, flynas signed a deal to double its fleet, with plans to purchase 160 additional Airbus planes, including 30 wide-body A330neos and 130 A320s. 

CEO and Managing Director Bander Al-Mohanna described the agreement as a key step toward establishing flynas as a leading global low-cost carrier. 

Since its inception in 2007, flynas has grown to serve over 70 domestic and international destinations, with 1,500 weekly flights and more than 80 million passengers flown to date. 

Topics: Flynas Saudi aviation

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Saudi Arabia’s Q3 budget deficit decreases to $8bn

Saudi Arabia’s Q3 budget deficit decreases to $8bn
Updated 1 min 10 sec ago
Dayan Abou Tine
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Saudi Arabia’s Q3 budget deficit decreases to $8bn

Saudi Arabia’s Q3 budget deficit decreases to $8bn
Updated 1 min 10 sec ago
Dayan Abou Tine

RIYADH: Saudi Arabia reported a budget deficit of SR30.23 billion ($8.06 billion) for the third quarter of 2024, a decrease of 15 percent compared to the same period last year, according to the Ministry of Finance.

This brings the total deficit for the nine months ending in September to SR57.96 billion, remaining in line with the ministry's previous forecasts.

Government revenues increased by 20 percent compared to the same quarter last year, reaching SR309.21 billion. Expenditures also rose, up 15 percent to SR339.44 billion, resulting in a budget deficit of SR30.23 billion.

Oil revenues constituted 62 percent of total government income, amounting to SR190.87 billion — a 30 percent increase during the period, according to the Ministry. Non-oil revenues represented the remaining 38 percent, totaling SR118.34 billion, reflecting a 6 percent rise.

Within the non-oil revenue sector, taxes on goods and services accounted for 62 percent, reaching SR73.94 billion, which signifies a 5 percent increase during this period.

The most notable growth occurred in “other taxes,” which surged by 69 percent to reach SR5.31 billion. The ministry indicated that these primarily include taxes paid by businesses, such as corporate zakat, along with other unspecified taxes.

Compensation for employees accounted for the largest share of government expenses, representing 41 percent at SR138.63 billion, reflecting a 6 percent increase during this period.

Expenditures on goods and services made up 24 percent, totaling SR82.69 billion, with a year-on-year rise of 15 percent.

Capital expenditures on non-financial assets constituted 14 percent, reaching SR48.15 billion, marking a 17 percent increase. Notably, subsidies grew significantly, rising by 10 percent to reach SR7.44 billion.

According to ministry data, the government's current account balance surged by 429 percent during this period, reaching SR76.7 billion.

In contrast, government reserves declined by 4 percent to SR390.08 billion. Additionally, public debt at the end of the third quarter totaled SR1.16 trillion, with 60 percent of this amount representing domestic debt.

In September, the ministry revised its estimate for the 2024 budget deficit to SR118 billion, marking a 49 percent increase from earlier projections. This adjustment reflects the Kingdom’s ambitious expansionary plans and ongoing investment in key projects aimed at bolstering economic growth and diversification.

Despite a backdrop of oil production cuts implemented by OPEC+ countries, which typically strain revenue streams, the Kingdom has managed to see a rise in overall revenues.

This resilience showcases Saudi Arabia’s strategic approach to navigating global market challenges while pursuing its Vision 2030 objectives, including infrastructure development, technological advancement, and the enhancement of public services.

Topics: budget

Pakistan central bank cuts key rate by 250 bps to 15%

Pakistan central bank cuts key rate by 250 bps to 15%
Updated 04 November 2024
Reuters
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Pakistan central bank cuts key rate by 250 bps to 15%

Pakistan central bank cuts key rate by 250 bps to 15%
  • Monday’s move follows cuts of 150 bps in June, 100 in July and 200 in September
  • It takes the total policy rate cuts in the country to 700 bps in under five months
Updated 04 November 2024
Reuters

KARACHI: Pakistan’s central bank cut its key policy rate by 250 basis points to 15 percent on Monday, it said in a statement, for a fourth straight reduction since June, as the country keeps up efforts to revive a sluggish economy with inflation easing.
Most respondents in a Reuters poll last week expected a cut of 200 bps after inflation moved down sharply from a multi-decade high of nearly 40 percent in May 2023, saying reductions were needed to bolster growth.
Average consumer price index inflation in the South Asian country is 8.7 percent in the current financial year, which started in July, the statistics bureau says. The International Monetary Fund (IMF) expects inflation to average 9.5 percent for the year ending June.
Monday’s move follows cuts of 150 bps in June, 100 bps in July, and 200 in September that have taken the rate from an all-time high of 22 percent, set in June 2023 and left unchanged for a year. It takes the total cuts to 700 bps in under five months.
October inflation came in at 7.2 percent, slightly above the government’s expectation of 6 percent to 7 percent. The finance ministry expects inflation to slow further to 5.5 percent to 6.5 percent in November.
However, inflation could pick up again in 2025, driven by electricity and gas price increases after a new $7-billion IMF bailout, and the potential impact of taxes on the retail, wholesale and the farm sector announced in the June budget to take effect in January 2025, some analysts say.
 

Topics: Pakistan monetary polcy

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Updated 04 November 2024
Nadin Hassan
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Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable

Mobily partners with Telecom Egypt to launch 1st Saudi submarine cable
Updated 04 November 2024
Nadin Hassan

RIYADH: Saudi Arabia’s telecommunications company, Mobily, has entered into a cooperation agreement with Telecom Egypt to establish the first Saudi-owned subsea cable connecting the two nations across the Red Sea.

The agreement includes the installation of the subsea cable, which will be fully owned by Mobily, with landing stations in Duba, Saudi Arabia, and Sharm El-Sheikh, Egypt, as stated by Mobily on X.

This cable will serve as a link between Asia and Africa, creating a route to Europe by connecting Saudi Arabia with Egypt.

It will enhance connectivity options for Gulf countries and neighboring regions through Mobily’s digital network, integrating with Egyptian landing stations in the Mediterranean.

Additionally, it will provide new routes to improve service reliability and meet customer needs within the Kingdom and beyond.

“The new cable represents a significant milestone in strengthening Saudi Arabia's position as a leading international hub for telecommunications services and data traffic, in alignment with the goals of Saudi Vision 2030,” said Salman bin Abdulaziz Al-Badran, CEO of Mobily.

He added: “The signing of the agreement underscores our commitment to expanding our infrastructure and enhancing our capabilities both regionally and internationally, as Mobily’s new cable will connect Saudi Arabia to Egypt and improve communication flexibility between the Middle East and Europe.”

This agreement aligns with Mobily’s strategy to bolster its infrastructure and network capabilities. Building on its previous investments in subsea cables that connect global regions, the new cable will expand Mobily’s international reach and capacity.

“Complementing the newly established landing station in Sharm El-Sheikh, we are developing new crossing routes to connect Sharm El-Sheikh to the Mediterranean Sea,” stated Mohamed Nasr, managing director and CEO of Telecom Egypt.

He further said: “We are confident that this commercial agreement will be a valuable addition to our ongoing efforts to support this critical sector and cater to the rising demand for capacity and connectivity.”

By increasing capacity and expanding its global reach through new collaborations, Mobily is dedicated to enhancing its subsea network infrastructure both domestically and internationally.

“I am pleased with our cooperation with Telecom Egypt, which will enable us to offer the best services to all our customers around the world,” Al-Badran noted.

“Telecom Egypt is dedicated to advancing the international telecommunications infrastructure by enhancing the geographical diversity of the global subsea cable networks,” Nasr added.

This commitment aims to provide cutting-edge digital solutions to customers and support the sustainable growth of the Kingdom’s ICT sector through advanced infrastructure.

Topics: Mobily Egypt

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