Egypt’s annual urban consumer price inflation at 25.5% in November 

Egypt’s annual urban consumer price inflation at 25.5% in November 
Egypt’s annual urban consumer price inflation rate was 25.5 percent in November, slowing from 26.5 percent in October, data from statistics agency CAPMAS showed on Tuesday. Shutterstock
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Updated 10 December 2024
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Egypt’s annual urban consumer price inflation at 25.5% in November 

Egypt’s annual urban consumer price inflation at 25.5% in November 
  • Headline inflation climbed to a record high of 38% in September 2023
  • By October 2024 it had fallen to 26.5%

DUBAI: Egypt’s annual urban consumer price inflation rate was 25.5 percent in November, slowing from 26.5 percent in October, data from statistics agency CAPMAS showed on Tuesday. 

Inflation began climbing precipitously in early 2022 following the Russian invasion of Ukraine, which prompted foreign investors to withdraw billions of dollars from Egyptian treasury markets. 

Headline inflation climbed to a record high of 38.0 percent in September 2023. By October 2024 it had fallen to 26.5 percent. 

The median forecast of 15 analysts in a Reuters poll had been for annual inflation to inch down to 26.4 percent last month. 

On a monthly basis, headline inflation rose by 0.5 percent in November, down from 1.1 percent in October, CAPMAS data showed.  

Food prices dropped by 2.8 percent on the month compared with 1.1 percent in October to stand 23.3 percent higher than they were a year earlier.  

Inflation has been fueled largely by an expansion of the money supply. Egypt’s M2 money supply grew by 29.54 percent year on year in October, central bank data showed. 


Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO

Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO
Updated 14 sec ago
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Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO

Saudi Arabia’s capital market booms as Vision 2030 fuels IPO surge and foreign investment: CEO

RIYADH: Saudi Arabia’s capital market continues to experience robust growth, driven by Vision 2030 and a flourishing economic landscape, according to a top official.

Speaking with Arab News on the sidelines of the Capital Market Forum in Riyadh, CEO of EFG Hermes Saudi Arabia Saud Al-Tassan highlighted the unique strength of the local market.

The top official highlighted that the Saudi stock market has become a “highly attractive venue” for leading private companies to list their initial public offerings.

“I think the Saudi market is growing at a very interesting rate, driven mainly by the economy and all the changes, the Vision 2030. We’re going through a transformational period right now for the Kingdom,” Al-Tassan said.

“One of the unique things in the Saudi market is that it has very strong local demand and this is very unique compared to a lot of regional markets. Although there is strong demand coming from international names, the local demand still takes up the bigger chunk,” he added.

EFG Hermes expanding offerings, eyes market leadership

While Al-Tassan did not disclose specific upcoming announcements, he confirmed that EFG Hermes is actively working on multiple initiatives. “We are continuously innovating and trying to offer the best services to our clients, and we are always thinking of different ways to add value, and hopefully, there will be some interesting announcements soon,” he said.

Regarding securities lending, Al-Tassan acknowledged that while it contributes a small percentage to EFG Hermes’ revenue in the Kingdom, the firm sees it as a strategic priority. 

“It’s part of evolving and offering our clients full-fledged services. We’re hoping that will increase in the coming years,” he said.

IPO market witnessing unprecedented growth

Saudi Arabia’s initial public offering market is experiencing a rapid expansion, with a growing number of offerings under review by the Capital Market Authority. EFG Hermes has played a key role in the market, closing several IPOs last year and maintaining an even larger pipeline for 2025.

“IPOs are going through a very interesting period right now in Saudi. The pipeline with the CMA is growing quite rapidly, and we have a very large pipeline this year that we’re eager to bring to the market,” Al-Tassan said.

He reaffirmed EFG Hermes’ position as a market leader in equity capital markets across the Middle East. “Last year, we were very active, and it was a very successful year for EFG in terms of IPO advisory. This year, we have an even larger pipeline, and we’re optimistic it will be an even better year.”

Al-Tassan added: “We have a number of very sizable and highly sought-after IPOs we’re working on. There has been significant growth from last year, both on the ECM and M&A front.”

Regulator’s role and foreign investment surge

According to the top official, regulatory reforms and government-backed initiatives have been instrumental in elevating the Saudi landscape. 

“The regulator has played an instrumental role in bringing the market to where it is today. We anticipate a lot of foreign participation this year, driven by expected IPOs and government-related company listings,” he noted.

Debt market and future growth prospects

While the debt market is not currently a significant revenue driver for EFG Hermes, Al-Tassan highlighted its strategic importance. “We expect it to be a significant part of our business in Saudi in the coming years.”

Looking ahead, Al-Tassan remains optimistic about the Kingdom’s capital market expansion, citing Vision 2030 as a key driver. 

“As long as IPOs feature quality names, there will be strong demand. We do not expect any slowdown, and our strong pipeline reflects this ongoing investor interest,” he added.


Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 

Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 
Updated 15 min 17 sec ago
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Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 

Saudi Exchange targets Indonesian firms with Jakarta Futures MoU 

RIYADH: Saudi Arabia’s stock market is set to attract Indonesian firms following a new memorandum of understanding with the Jakarta Futures Exchange. 

Signed during the fifth Capital Market Forum, the agreement will see JFX members promoting the Kingdom’s trading platforms to both retail and institutional investors, strengthening financial ties between the two markets. 

In another step to bolster Saudi Arabia’s financial infrastructure, Fidelity Information Services Global inked an MoU with Muqassa, a subsidiary of the Saudi Tadawul Group, to enhance the Kingdom’s derivatives market. The partnership aims to integrate advanced technologies that improve market efficiency and liquidity. 

These deals were among eight agreements signed during the conference, underscoring Saudi Arabia’s continued push for financial sector expansion and technological advancement. 

The Financial Academy and Saudi Tadawul Group also joined forces to launch specialized training programs tailored for the financial industry. 

The initiative, developed in collaboration with leading universities, will introduce the Sustainability Specialist in the Financial Sector certification and host workshops to deepen industry expertise. 

Awqaf Investment has signed two key agreements. The first, with SNB Capital, is aimed at serving the SR8 billion ($2.1 billion) Awqaf market, with a focus on developing improved investment products that cater to the sector’s needs. 

The second, an investment advisory agreement with Ehsan, will see Awqaf Investment Co. providing strategic advisory services for the Ehsan Waqf Fund, further strengthening the Kingdom’s philanthropic investment landscape. 

Saudi Arabia’s real estate market is also set to benefit from a new collaboration between Aljazira Capital and Target, as the two entities launch the Wahat Alnakheel Real Estate Fund — a major initiative with a fund size exceeding SR1 billion. 

Meanwhile, Dalipal Holdings Limited has partnered with Saudi investment firm BMG Financial Group to strengthen Dalipal’s presence in the Kingdom’s energy sector. The MoU leverages BMG’s regulatory expertise and investor network with Dalipal’s specialization in high-end energy pipes and seamless steel products. The collaboration could pave the way for a potential Dalipal listing on the Saudi Exchange. 

A significant trilateral partnership was also unveiled, with Wamid, Google Cloud, and Deloitte teaming up to develop and launch new capital market data products. The initiative positions Saudi Tadawul Group as a leader in financial innovation and digital transformation. 

Additionally, the Saudi Securities Depository Center Co., known as Edaa, has launched EDAA CONNECT, a centralized platform for mutual fund investments across the Saudi capital market. 

The initiative, developed in partnership with 11 financial firms — including Albilad Capital, AlRajhi Capital, and Rassanah Capital, as well as Saudi Awwal Bank Invest, and SNB Capital — aims to streamline fund access and enhance investment efficiency. 


Closing Bell: Saudi main index closes in green at 12,334 

Closing Bell: Saudi main index closes in green at 12,334 
Updated 36 min 7 sec ago
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Closing Bell: Saudi main index closes in green at 12,334 

Closing Bell: Saudi main index closes in green at 12,334 

RIYADH: Saudi Arabia’s Tadawul All Share Index rebounded on Tuesday, as it gained 67.21 points, or 0.55 percent, to close at 12,333.67.  

The total trading turnover of the benchmark index was SR5.78 billion ($1.54 billion), with 105 stocks advancing and 128 retracting.  

Saudi Arabia’s parallel market Nomu, however, shed 265.24 points to close at 31,379.57. 

The MSCI Tadawul Index gained 13.95 points to 1,535.59. 

The best-performing stock on the main market was Al Hassan Ghazi Ibrahim Shaker Co. The firm’s share price increased by 5.80 percent to SR31. 

The share price of Nice One Beauty Digital Marketing Co. also rose by 5.23 percent to SR68.40.  

Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA, witnessed its share price increasing by 5.06 percent to SR10.80.  

Conversely, Anaam International Holding Group’s share price dropped by 5.11 percent to SR23.42.  

On the announcements front, First Milling Co. said that its net profit for 2024 reached SR250.9 million, representing a rise of 13.94 percent compared to the same period in 2023.  

According to a Tadawul statement, the company’s revenue increased by 8.77 percent year on year to SR1.04 billion in 2024.  

First Milling Co. added that its net profit for the fourth quarter of 2024 stood at SR66.4 million, marking a 15.47 percent compared to the same period in 2023.  

Compared to the third quarter, the company’s net profit increased by 8.31 percent in the final three months of 2024. 

The share price of First Milling Co. edged up by 1.46 percent to SR62.40. 


Saudi Arabia’s debt capital market still has growth potential, investment minister says

Saudi Arabia’s debt capital market still has growth potential, investment minister says
Updated 55 min 59 sec ago
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Saudi Arabia’s debt capital market still has growth potential, investment minister says

Saudi Arabia’s debt capital market still has growth potential, investment minister says
  • Khalid Al-Falih said the Kingdom maintains a balanced and diverse set of global relationships at the macro level
  • He also highlighted the strong interest from Asian investors in capital flow into Saudi Arabia

RIYADH: Saudi Arabia’s debt capital market has growth potential, as it accounts for less than 4 percent of gross domestic product, compared to the G20 average of over 40 percent, the investment minister revealed.

During a panel discussion titled “Capital Crossroads: Connecting Global Investment Hubs” on the first day of the Capital Markets Forum 2025, held from Feb. 18-20 in Riyadh, Khalid Al-Falih explained that the Kingdom aims to expand its debt capital market significantly.

This falls in line with the fact that Saudi Arabia’s debt capital market is expected to hit $500 billion by the end of 2025, fueled by the Kingdom’s economic diversification efforts under Vision 2030, according to Fitch Ratings.

In February, Fitch’s latest report highlighted several factors driving this growth, including the government’s need for deficit funding, maturing obligations, and ongoing reforms.

“There is a call for action by our corporates, by our mid-markets to come forward and prepare for raising capital through bonds and sukuks and the debt capital market of Saudi Arabia. Many of them have been doing this in places like London and London has been accommodating and very open for Saudi entities,” Al-Falih said.

“We need to channel global capital into the opportunities not just in the Kingdom but in the region,” he added.

The minister said that King Abdullah Financial District Business Center has already attracted about 600 global companies and that many of them would require professional and financial services as well as raising capital for their regional growth.

“We don’t want them to go and raise that capital internationally. We want them to do it here in Riyadh, aided and enabled by the great Saudi enterprises but also by partnerships from around the world,” Al-Falih said.

He further said that capital markets are a reflection of the broader economy and that the Kingdom maintains a balanced and diverse set of global relationships at the macro level. As one of the world’s largest trading nations, Saudi Arabia has a varied trade balance, with India and China playing key roles in importing from and exporting to the country.

Al-Falih added: “But we continue to trade in a very strong way on goods and services with the Western nations as well as other developing countries in the South. If you look at the investment of the G20 investors in the Kingdom of Saudi Arabia, six of the top 10 are from the East, and the other four are Western countries.”

He also highlighted the strong interest from Asian investors in capital flow into Saudi Arabia.

“The Kingdom in many ways is a connector, as I mentioned, of owners of capital from investors from East and West, and hopefully, we play a significant role in terms of bringing investors, bringing companies together, creating a platform for global cooperation and collaboration which is very much central to how we want to lead going forward to minimize the fragmentation and tension that seems to have emerged the last few years,” the minister said.

During the panel discussion, Al-Falih also tackled how Vision 2030 created a massive shift in the basic economy, with significant growth in non-oil sectors being recorded.

He added that over the past seven to eight years, there have been typical fluctuations in the oil markets, including price changes and variations in Saudi production, which directly impact government revenues and the balance of payments. However, the other sectors, particularly the non-oil economy, have experienced steady and consistent growth of 4 to 6 percent throughout this period.

The minister added: “Sectors that hardly existed are growing at double-digit year on year for the period since Vision 2030, despite COVID and despite micro volatility globally, as I mentioned. You look at tourism, you look at tech, you look at logistics and transportation, all of these are sectors that are drawing a lot of investments and that is reflected in the capital markets, which is the subject of our gathering today.”

The minister also said that over the last two to three years, between 40 and 50 initial public offerings for equity listings have taken place.

“There is still a significant need for this forum and for the capital markets governed by CMA (Capital Market Authority), but really the motor for it and the driver is Tadawul because that is the platform of which everybody works to continue to reflect what is happening in the basic economy, which is diversification and rebalancing of our capital markets,” he said.

Baroness Gustafsson of Chesterton of the Order of the British Empire and the UK’s Minister for Investment, who was also on the same panel, said that bold strategies are needed to drive investment success.

“You have to be quite clear about what it is that you want to accomplish and make that available to investors, and we have done that with our modern industrial strategy, laying out those sort of key sectors that we think are going to be really contributing to the growth of the UK so the investors can align alongside that to make sure they are supporting that,” Gustafsson said.

“The other aspect that you need is that capability. So, that exists in both terms of the sort of innovation capability. So, we have got some of the best academic institutions in the world with world-class expertise that are going out solving these really complicated world problems,” she added.

Organized by the Saudi Tadawul Group and held under the patronage of the Minister of Finance and Chairman of the Financial Sector Development Program Committee, Mohammed Al-Jadaan, the forum will convene top policymakers, business leaders, and industry experts to discuss key trends and developments shaping the nation’s capital markets. 

With a strong focus on the evolving financial landscape, the event is held under the theme “Powering Connections,” and is set to unlock investment opportunities, foster strategic partnerships, and further position the Kingdom as a key player in the global capital markets ecosystem.


UK firms should consider dual listings in Saudi Arabia, says British minister

UK firms should consider dual listings in Saudi Arabia, says British minister
Updated 18 February 2025
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UK firms should consider dual listings in Saudi Arabia, says British minister

UK firms should consider dual listings in Saudi Arabia, says British minister

RIYADH: Saudi Arabia presents significant opportunities for UK businesses, including the potential for dual listings on the London and Riyadh stock exchanges, according to British Minister of Investment Poppy Gustafsson.  

Speaking with Arab News at the Capital Markets Forum in Riyadh, Gustafsson emphasized the long-standing economic ties between the two nations and the shared ambition to strengthen investment and trade links.  

Gustafsson underscored the importance of educating UK businesses about the advantages of accessing Saudi Arabia’s commercial and trading markets through dual listings.   

This comes as Saudi Arabia and the UK reaffirmed their commitment to strengthening economic ties and boosting bilateral trade to £30 billion ($37.5 billion) by 2030 during UK Prime Minister Keir Starmer’s visit to the Kingdom in December. 

“There’s a huge opportunity for UK businesses to sell their products in Saudi Arabia and access that market more effectively,” she said.   

“I’m here to articulate not just why governments want these partnerships, but what the benefits are for businesses.”  

The UK and Saudi Arabia have already established a governance framework to facilitate economic cooperation, including a recently refreshed memorandum of understanding and the Strategic Oversight Board.   

“The governance structure is in place, and the next phase is to translate these agreements into tangible outcomes, whether through increased investment, trade, or dual listings,” she said.  

Fintech is one sector seeing strong bilateral engagement, with British companies actively exploring opportunities in Saudi Arabia.   

Gustafsson cited the success of a British fintech firm that won a Saudi competition, as well as broader UK expertise in the sector.  

“British fintech companies are recognizing the potential here and establishing offices in Saudi Arabia. That’s beneficial for both sides,” she said.  

“My role in the UK is to support both investment into the UK and investment out of the UK into other regions, whether that’s Saudi Arabia or elsewhere,” Gustafsson said.   

“We have a long historic relationship, and being here (in Saudi Arabia) feels like we are among friends. The goal is to build on that history to solve modern problems and drive growth across both of our nations.”  

The UK and the Gulf Cooperation Council are negotiating a free trade agreement, which is expected to increase trade between the UK and Saudi Arabia by approximately 18 percent.   

Gustafsson highlighted past efforts to deepen commercial ties, citing last year’s Great Futures Conference, where the largest UK trade delegation in a decade brought 450 British companies to Saudi Arabia.   

“A lot of investments came off the back of that,” she said, adding that improved e-visa processes and new direct flights are further facilitating business exchanges.  

A key focus of the forum was capital market collaboration, particularly in enabling British companies to pursue dual listings in Saudi Arabia and vice versa.   

“The UK has a great heritage in financial institutions and a strong stock exchange, while Saudi Arabia has a rapidly growing domestic market,” Gustafsson noted.   

“By sharing expertise, we can create opportunities for British companies to dual list or for Saudi companies to raise debt in the UK.”   

Islamic finance is another key area of collaboration. “The UK has been innovative in capital markets, particularly in structuring Islamic finance products,” she said. 

“London has traditionally been the main hub for raising debt financing, and fostering an innovation ecosystem requires businesses to access capital markets effectively,” the minister said.   

“Saudi Arabia is working closely with the London Stock Exchange to expand its offering and deepen its market liquidity, ensuring best practices and knowledge-sharing between our two financial hubs,” she added.