Kingdom leads GCC in nonoil production

Updated 17 July 2013

Kingdom leads GCC in nonoil production

The Gulf Cooperation Council (GCC) countries are strenuously working to diversify income sources and minimize reliance on oil through investment in leading industrial activities, local media reported.
Saudi Arabia, in particular, is leading the GCC region to develop nonoil sector where the value of the ongoing nonoil projects is estimated at $ 17 billion (SR 63.7 billion), Al-Riyadh daily said quoting a report by Gulf Investment Corporation (GIC).
The Kingdom has reportedly occupied the 12th rank among the world's biggest 40 countries concerned with renewable energy sources.
In other GCC countries, the UAE has spent $ 5 billion in solar energy projects, currently under construction, whereas the value of nonoil projects is estimated at $ 2.1 billion, which are mostly concentrated in Abu Dhabi Emirate.
The Kingdom recently announced four solar energy projects, notably the solar energy project in Makkah, announced in the last quarter of 2012, whereby the holy city will become the first area to use an alternative energy source in the Kingdom, the local media said.
In Qatar, meanwhile, nonoil projects captured some $ 2.8 billion, mostly in iron and steel industries. Cement industry is predicted to lead business sector in the next five years at the growth rate of 11.2 percent followed by consumer industry sector at 7.7 percent.
On the other hand, the GCC countries will continue to achieve high rates of economic growth in the current year despite a slight decline in the oil prices and lower exports, which dropped by 5 percent compared to last year’s figures, the local media said.
Based on the above situation, levels of personal incomes have steadily increased, which led to the expansion of bank deposits, particularly in Saudi Arabia, the UAE and Qatar, and encouraged the banks to expand banking credits.
Meanwhile, Saudi Arabia has topped the MENA countries in terms of solar energy projects where it got 4.1 points out of 5 points, according to a report released by VtM, a US solar research firm.
Turkey came second at 3.9 points, followed by Abu Dhabi and Morocco jointly at 3.6 points in the third rank, Jordan in the fifth rank (3.2 points), Dubai in the sixth rank (3.1 points), Algeria and Egypt jointly in the seventh rank (3 points), and Qatar in the ninth rank (2.4 points).
The MENA region has the biggest solar energy potentials globally whereas Saudi Arabia and Turkey will lead the regional countries in terms of the highest energy demand and will become the first two countries to use the electric scale of GigaWatt (or billion watts) by 2015, according to the VtM report.

Gulf stocks extend losses on tanker attacks

Updated 17 June 2019

Gulf stocks extend losses on tanker attacks

  • Cautious mood among investors as fears of military confrontation rise

DUBAI: Stock markets in the Gulf extended losses on Sunday reflecting a cautious mood among investors following last week’s oil tanker attacks. 

The attacks on the tankers in the Gulf of Oman on Thursday raised fears of a military confrontation in a vital shipping route for global oil supply and heightened tensions between Iran and the US, which have been in a standoff over Iran’s nuclear program. 

The Saudi index had dropped 1.6 percent on Thursday and fell a further 0.6 percent on Sunday after slight gains in early trade. Most Saudi banks were down, despite Sunday’s announcement by Saudi British Bank that its merger with Alawwal Bank was completed. 


• Gulf stocks reverse early gains.

• Gulf of Oman tanker attacks dampen investor mood.

• Saudi banks mostly down despite SABB-Alawwal merger.

The two banks have combined to create the country’s third largest lender, becoming a single listed company after regulatory approvals. SABB’s shares shed 0.1 percent. Alinma Bank, however, gained 0.4 percent, and was one of the stocks registering the highest trading volume on Sunday. 

In the UAE, the Dubai and Abu Dhabi indexes fell 0.7 percent and 0.2 percent, respectively. The Dubai market had risen earlier in the day, boosted by DAMAC Properties and Union Properties, which closed up 2.2 percent and 0.5 percent, respectively. But heavyweight Emaar Properties, the largest developer in the emirate, fell 2.5 percent, weighing on the index. 

Dubai’s telecom operator Du (Emirates Integrated Telecommunications Co) shed 0.4 percent, reversing earlier gains, after it said the UAE sovereign wealth fund Emirates Investment Authority had increased its stake by buying 463.3 million shares from Mamoura Diversified Global Holding and General Investments. 

In Abu Dhabi, blue chip companies Aldar Properties, First Abu Dhabi Bank and Abu Dhabi National Oil Company for Distribution, led losses, dragging down the main index. The other Gulf markets were all in the red, except for the Bahrain index, which rose slightly. 

In Egypt, the index gained 0.2 percent, boosted by a 4.5 percent gain by Pioneers Holding Company for Financial Investments. The company said one of its divisions, Arab Dairy Products, had received a letter of intent from a Netherlands based company about a plan to buy it.