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Saudi-Portuguese Business Council launches investment regulation initiative

Saudi-Portuguese Business Council launches investment regulation initiative
The MoU was signed by Walid Al-Baltan, chairman of the Saudi-Portuguese Business Council and Ibrahim Al-Howishel. X/@CSC_SA
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Updated 05 November 2024
Nadin Hassan
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Saudi-Portuguese Business Council launches investment regulation initiative

Saudi-Portuguese Business Council launches investment regulation initiative
Updated 05 November 2024
Nadin Hassan
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RIYADH: Saudi Arabia and Portugal are aiming to increase awareness of investment regulations in both countries to boost trade thanks to a first-of-its-kind initiative. 

Announced by the Federation of Saudi Chambers, the Saudi-Portuguese Business Council signed a memorandum of understanding with Ibrahim Al Howishel Law Firm to facilitate the entry of Portuguese companies into the Kingdom. 

The MoU will also encourage regional companies to invest in Portugal by acting as a legal advisor. It will be the first of its kind among Saudi foreign business councils within the federation. 

Its objective is to increase the number of international investors in the Kingdom by informing them about the positive developments, regulatory environment, and investment landscape. 

Walid Al-Balhan, chairman of the Saudi-Portuguese Business Council, emphasized that the recently signed MoU aligns with Saudi Arabia’s Vision 2030, which aims to attract foreign investment and strengthen international business ties. 

He also said the advisor would address investor queries and provide guidance on regulations, building confidence among Portuguese companies looking to enter the Kingdom. 

He extended his gratitude to the Federation of Saudi Chambers and relevant government bodies for their support of the council’s initiatives. 

Under the agreement, both parties will collaborate with the Kingdom’s authorities to host workshops for Portuguese firms interested in the Saudi market. 

These sessions are expected to cover key topics, including the Premium Residency system, foreign investment regulations, and company setup processes, as well as strategic investment opportunities and incentives for firms considering relocating their headquarters to Saudi Arabia. 

The agreement also includes cooperative efforts to refine investment procedures for Saudi companies in Portugal, propose incentives for entities from the European country to attract investors within the Kingdom, and provide advisory support for companies in both nations. 

The newly established Saudi-Portuguese Business Council aims to strengthen economic relations between Saudi Arabia and Portugal from 2024 to 2028. 

Formed in August under the Federation of Saudi Chambers of Commerce and endorsed by Saudi Arabia’s General Authority for Foreign Trade, the council is led by President Al-Baltan, with Vice Presidents Tarfah bint Abdulrahman Al-Mutairi and Turki bin Nasser Al-Khilaiwi. 

The council aligns with Saudi Arabia’s strategy to deepen ties with European countries, focusing on collaborative sectors such as infrastructure, agriculture, tourism, technology, and renewable energy — all central to Saudi Vision 2030’s goal of diversifying the economy beyond oil. 

Saudi exports to Portugal grew by 50 percent between 2021 and 2022, with trade volume reaching $1 billion in 2023. The council seeks to enhance investment opportunities and create a supportive environment for businesses from both nations to access each other’s markets. 

This collaboration was formalized with a 2021 memorandum of understanding between the Saudi and Portuguese federations, marking a strategic step to capitalize on growth potential in each country. 

Topics: Saudi-Portuguese Business Council Saudi - Portugal

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IMF staff-level agreement set to pave way for $1.2bn funding for Egypt

IMF staff-level agreement set to pave way for $1.2bn funding for Egypt
Updated 31 sec ago
Nirmal Narayanan 
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IMF staff-level agreement set to pave way for $1.2bn funding for Egypt

IMF staff-level agreement set to pave way for $1.2bn funding for Egypt
Updated 31 sec ago
Nirmal Narayanan 

RIYADH: Egypt will potentially have access to around $1.2 billion from the International Monetary Fund, following a staff-level agreement under the Extended Fund Facility.  

The agreement, which is subject to approval by the IMF’s Executive Board, aims to provide crucial financial support as Egypt navigates a challenging economic landscape. 

The funding is part of Egypt’s broader efforts to stabilize its economy amidst high inflation and lower-than-expected revenues, including a decline in Suez Canal earnings. 

“The Egyptian authorities have continued to implement key policies to preserve macroeconomic stability, despite ongoing regional tensions that are causing a sharp decline in Suez Canal receipts,” said Ivanna Vladkova Hollar, who led the IMF mission to Egypt.  

The country incurred losses of $8 billion due to a sharp decline in Suez Canal revenues, as revealed by Egyptian Foreign Minister Badr Abdelatty last month. 

The IMF and Egyptian authorities have agreed to recalibrate the country’s fiscal consolidation path, creating fiscal space for critical social programs targeting vulnerable groups and the middle class, while ensuring long-term debt sustainability. 

“Particular attention will be needed to contain fiscal risks stemming from state-owned enterprises in the energy sector, and to enforce the strict implementation of the public investment ceiling, which includes capital expenditures associated with public entities that operate outside the general government budget,” added Holler.  

She praised Egypt’s plans to streamline and simplify its tax system but stressed that additional reforms are necessary to boost domestic revenue mobilization. 

As part of the agreement, Egypt committed to increasing its tax-to-revenue ratio by 2 percent of gross domestic product over the next two years, focusing on eliminating exemptions rather than raising taxes. 

“A comprehensive reform package is needed to ensure that Egypt rebuilds fiscal buffers to reduce debt vulnerabilities, and generates additional space to increase social spending, especially in health, education and social protection,” she said.  

Looking ahead, Egypt’s reform priorities involve boosting domestic revenues, improving the business environment, accelerating divestment, leveling the playing field, and enhancing governance and transparency.

“While Egypt faces headwinds from the difficult external environment, there was agreement that further efforts were needed to accelerate the divestment program. The authorities expressed commitment to redouble their efforts in this area, which is crucial to support private sector development and to reduce the high debt burden,” added Holler.

Earlier this month, Fitch Ratings downgraded Egypt’s economic growth forecast to 3.87 percent for the fiscal year 2024/25, down from 4.2 percent, citing disruptions in Suez Canal navigation. 

The rating agency projected a recovery in the financial year 2025/26, with growth accelerating to 5.1 percent, up from an earlier estimate of 4.7 percent, contingent on normalizing Red Sea navigation and improved performance in the services sector amid easing geopolitical tensions.

Topics: Egypt IMF

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Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT
Updated 25 December 2024
Nirmal Narayanan
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Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT

Saudi non-oil exports jump 12.7% to $6.76bn in October: GASTAT
  • Chemical products led the non-oil export categories, accounting for 26.8 percent of the total
  • On the import side, Saudi Arabia’s inbound shipments fell 3.8 percent year on year to SR72.01 billion
Updated 25 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s non-oil exports surged 12.7 percent year on year in October, reaching SR25.38 billion ($6.76 billion), underscoring the Kingdom’s push to diversify its economy away from oil dependence. 

According to the General Authority for Statistics, chemical products led the non-oil export categories, accounting for 26.8 percent of the total, while plastics and rubber products followed, contributing 23.7 percent.

The rise in non-oil exports is a cornerstone of Saudi Arabia’s broader Vision 2030 strategy, which aims to transform the Kingdom’s economic landscape and reduce reliance on oil revenues.

“The ratio of non-oil exports (including re-exports) to imports increased to 35.2 percent in October 2024 from 30.1 percent in October 2023. This was due to a 12.7 percent increase in non-oil exports and a 3.8 percent decrease in imports over that period,” GASTAT said in its report.

While non-oil trade climbed, total merchandise exports fell 10.7 percent in October, primarily driven by a 17.3 percent drop in oil exports. The share of oil in overall exports declined to 72.6 percent from 78.3 percent a year earlier, reflecting the Kingdom's ongoing commitment to reducing its dependence on crude sales.

Saudi Arabia implemented a voluntary oil production cut of 500,000 barrels per day in April 2023, a measure that remains in place until December 2024 to stabilize global markets.

China remained Saudi Arabia’s largest trading partner, importing goods worth SR14.95 billion, or 16.1 percent of the Kingdom’s total exports in October. Other major destinations included India with SR8.79 billion, Japan with SR8.70 billion, and South Korea with SR8.31 billion.

On the import side, Saudi Arabia’s inbound shipments fell 3.8 percent year on year to SR72.01 billion. Machinery and equipment topped the list, comprising 25.7 percent of total imports, marking a 6.9 percent annual increase. However, transportation equipment imports declined 21.6 percent, representing 15.3 percent of the total.

China also dominated Saudi imports, sending goods worth SR17.58 billion in October, followed by the US with SR5.69 billion and the UAE with SR4.34 billion.

King Abdulaziz Sea Port in Dammam served as the leading entry point for imports, processing goods valued at SR21.16 billion, or 29.4 percent of total inbound shipments.

Saudi Arabia’s latest trade data highlights its progress in bolstering non-oil sectors while navigating global oil market challenges, aligning with its long-term economic transformation goals.

Topics: GASTAT exports imports

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Saudi Arabia raises $3.09bn in sukuk issuances for December

Saudi Arabia raises $3.09bn in sukuk issuances for December
Updated 24 December 2024
Nirmal Narayanan
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Saudi Arabia raises $3.09bn in sukuk issuances for December

Saudi Arabia raises $3.09bn in sukuk issuances for December
Updated 24 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s National Debt Management Center has successfully concluded its riyal-denominated sukuk issuance for December, raising SR11.59 billion ($3.09 billion).

This marks a substantial 239.88 percent increase from the previous month, when the Kingdom raised SR3.41 billion in sukuk. Saudi Arabia had raised SR7.83 billion in October and SR2.6 billion in September.

Sukuk, which are Shariah-compliant Islamic bonds, provide investors with partial ownership of the issuer’s assets until the bonds mature. The rise in sukuk issuance aligns with positive global market projections.

A Moody’s report released in September forecasted that the global sukuk market would remain robust in 2024, with total issuance expected to reach between $200 billion and $210 billion, an increase from just under $200 billion in 2023.

The December sukuk issuance by NDMC was structured into four tranches, each with varying maturities. The largest tranche, valued at SR5.58 billion, is set to mature in 2027. Another tranche, worth SR3.90 billion, will mature in 2029, while a third tranche, valued at SR706 million, is due for repayment in 2031. The final tranche, amounting to SR1.4 billion, will mature in 2034.

This surge in sukuk issuance comes as the Kingdom is expected to lead the Gulf Cooperation Council region in bond and sukuk maturities between 2025 and 2029.

A report by Kamco Invest, released earlier this month, projected that Saudi Arabia’s total bond and sukuk maturities during this period would reach $168 billion, with government-issued bonds and sukuk accounting for $110.2 billion of that total.

In December, Fitch Ratings also highlighted that the GCC debt capital market crossed the $1 trillion threshold in outstanding debt by the end of November.

Earlier in October, Fitch had noted that the growth in sukuk issuance was driven by improving financing conditions, especially after the US Federal Reserve’s rate cut to 5 percent in September. Looking ahead, Fitch expects interest rates to decline further, reaching 4.5 percent by the end of 2024 and 3.5 percent by the end of 2025, which is likely to spur more sukuk issuances in the short term.

Topics: NDMC Sukuk

Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations
Updated 24 December 2024
Reem Walid
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Saudi, Nigerian ministers hold talks to strengthen economic relations

Saudi, Nigerian ministers hold talks to strengthen economic relations
Updated 24 December 2024
Reem Walid

RIYADH: Saudi Arabia and Nigeria held high-level talks to discuss financial and economic developments, focusing on regional and global challenges, as well as opportunities for collaboration. 

The meeting, led by the kingdom’s Minister of Finance Mohammed Al-Jadaan, included a delegation from the African country headed by Finance Minister Wale Edun and Budget and Economic Planning Minister Abubakar Atiku Bagudu.

The discussions aimed to strengthen economic ties and explore joint strategies to navigate evolving financial landscapes. 

This comes as trade between Nigeria and Saudi Arabia showed a significant imbalance in 2023, with Nigeria exporting goods worth $76.29 million to the Kingdom, while imports from Saudi Arabia amounted to $1.51 billion, according to the UN COMTRADE database on international trade.

Topics: Saudi-Nigerian ties

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Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
Updated 24 December 2024
Nirmal Narayanan
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Closing Bell: Saudi main index closes in red at 11,914

Closing Bell: Saudi main index closes in red at 11,914
  • Parallel market dropped by 0.11% to 30,920.40
  • MSCI Tadawul Index shed 3.17 points to close at 1,496.90
Updated 24 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, as it shed 34.84 points, or 0.29 percent, to close at 11,913.95. 

The Kingdom’s parallel market also dropped by 0.11 percent to 30,920.40, while the MSCI Tadawul Index shed 3.17 points to close at 1,496.90. 

The total trading turnover of the benchmark index was SR3.83 billion ($1.02 billion), with 64 of the listed stocks advancing, while 168 declining. 

The best-performing stock of the day was Al-Baha Investment and Development Co., as its share price surged by 9.09 percent to SR0.48. 

Other top performers were Saudi Chemical Co., increasing 4.66 percent to SR9.66, and Shatirah House Restaurant Co., rising 4.44 percent to SR21.30. 

The share price of United Electronics Co. slipped by 6.77 percent to close at SR92.20. 

First Milling Co. announced the successful expansion of its Mill A, boosting production capacity from 300 tonnes to 550 tonnes per day. 

In a Tadawul filing, the company, which produces flour, feed, and bran, said that the financial impact of the expansion will be reflected in the fourth quarter of this year. 

The company’s share price gained 1.35 percent, closing at SR59.90. 

Banque Saudi Fransi announced that its shareholders approved a 107.4 percent capital increase, raising its capital from SR12.05 billion to SR25 billion. 

The bank said that the decision was finalized during an extraordinary general meeting held on Dec. 23. 

Banque Saudi Fransi’s share price dropped 0.62 percent to close at SR15.94. 

Meanwhile, retail investors began subscribing to 3.47 million shares of Saudi-based online beauty brand Nice One on the main market. 

The company announced on Dec. 16 that it set the final offer price for its initial public offering at SR35 per share, aiming to raise SR1.2 billion. 

The retail subscription period, which started on Dec. 24, will run through Dec. 25. 

Saudi Arabia’s Capital Market Authority approved Ejada Systems Co.’s request to float 20.05 million shares, representing 45 percent of its share capital. 

In a statement on Tadawul, the company said that its prospectus will be published well ahead of the subscription period. 

It will provide investors with key information, including financial statements, business activities, and management details to support informed investment decisions. 

The CMA approved a request by Umm Al Qura for Development and Construction Co. to float 130.78 million shares, representing 9.09 percent of the firm’s share capital. 

The authority also approved Ratio Specialty Co. to float 5 million shares, equal to 25 percent of the company’s share capital, on the Kingdom’s parallel market. 

Topics: Saudi Arabia Tadawul TASI MSCI Tadawul Index NOMU Saudi stock market Saudi Stock Exchange (Tadawul) Closing Bell Tadawul All Share Index (TASI)

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