Saudi equity market cap falls to SR1.50 trillion in first half

Updated 05 July 2016
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Saudi equity market cap falls to SR1.50 trillion in first half

JEDDAH: The Saudi stock market fell in the first half of this year.

According to Tadawul Statistical Report, at the end of the first half of 2016, the Tadawul All-Share Index (TASI) closed at 6,499.88 points, down 2,587.01 points or 28.47 percent over the close of the same period of the previous year.
On an YTD basis TASI registered a negative decrease of 5.96 percent (411.88 points).
The report said highest close level for the index during the period was 6,952.22 point as on Jan. 3, 2016.
Total equity market capitalization at the end of the first half 2016 reached SR1.50 trillion ($401.16 billion), declined by 25.29 percent over the end of the 1st half of the previous year.
The total value of shares traded for the 1st half 2016 reached SR688.19 billion ($183.52 billion), dropped by 34.07 percent over the same period of the previous year.
The total number of traded shares reached 38.74 billion during the 1st half compared to 39.03 billion shares traded during the 1st half of the previous year, decreased by 0.74 percent.
The Tadawul report said total number of transactions executed during the 1st half 2016 reached 16.04 million compared to 17.85 million trades during the 1st half of the previous year, decreased by (10.14 percent.
Meanwhile, the total value of shares traded for the week ending June 30, 2016 amounted to SR21.71 billion, increasing by 40.60 percent over the previous week; while total stock market capitalization reached SR1.504 trillion at the end of this period, decreasing by 0.59 percent over the previous week.
The total value of shares purchased by Saudi investors during this period amounted to SR20.74 billion representing 95.52 percent of total buying activity, and sales of SR20.86 billion representing 96.08 percent of total selling activity. Total ownership of Saudi investors” stood at 93.24 percent of total market capitalization as of June 30, 2016, representing an increase of 0.01 percent from the previous week.
The total value of shares purchased by GCC investors during this period amounted to SR0.306 billion, representing 1.41 percent of total buying activity, and sales of SR0.260 billion, representing 1.20 percent of total selling activity. Total ownership of GCC investors stood at 2.56 percent of total market capitalization as of June 30, 2016, representing an increase of 0.0003 percent from the previous week.
The total value of shares purchased by foreign investors during this period amounted to SR0.666 billion representing 3.07 percent of total buying activity, and sales of SR0.592 billion representing 2.73 percent of total selling activity. Total ownership of foreign investors stood at 4.21 percent of total market capitalization as of June 30, 2016, representing a decrease of 0.01 percent from the previous week.


Gulf defense spending ‘to top $110bn by 2023’

Updated 15 February 2019
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Gulf defense spending ‘to top $110bn by 2023’

  • Saudi Arabia and UAE initiatives ‘driving forward industrial defense capabilities’
  • Budgets are increasing as countries pursue modernization of equipment and expansion of their current capabilities

LONDON: Defense spending by Gulf Arab states is expected to rise to more than $110 billion by 2023, driven partly by localized military initiatives by Saudi Arabia and the UAE, a report has found.

Budgets are increasing as countries pursue the modernization of equipment and expansion of their current capabilities, according to a report by analytics firm Jane’s by IHS Markit.

Military expenditure in the Gulf will increase from $82.33 billion in 2013 to an estimated $103.01 billion in 2019, and is forecast to continue trending upward to $110.86 billion in 2023.

“Falling energy revenues between 2014 and 2016 led to some major procurement projects being delayed as governments reigned in budget deficits,” said Charles Forrester, senior defense industry analyst at Jane’s.

“However, defense was generally protected from the worst of the spending cuts due to regional security concerns and budgets are now growing again.”

Major deals in the region have included Eurofighter Typhoon purchases by countries including Saudi Arabia and Kuwait.

Saudi Arabia is also looking to “localize” 50 percent of total government military spending in the Kingdom by 2030, and in 2017 announced the launch of the state-owned military industrial company Saudi Arabia Military Industries.

Forrester said such moves will boost the ability for Gulf countries to start exporting, rather than purely importing defense equipment.

“Within the defense sector, the establishment of Saudi Arabia Military Industries (SAMI) in 2017 and consolidation of the UAE’s defense industrial base through the creation of Emirates Defense Industries Company (EDIC) in 2014 have helped consolidate and drive forward industrial defense capabilities,” he said.

“This has happened as the countries focus on improving the quality of the defense technological work packages they undertake through offset, as well as increasing their ability to begin exporting defense equipment.”

Regional countries are also considering the use of “disruptive technologies” such as artificial intelligence in defense, Forrester said.

Meanwhile, it emerged on Friday that worldwide outlays on weapons and defense rose 1.8 percent to more than $1.67 trillion in 2018.

The US was responsible for almost half that increase, according to “The Military Balance” report released at the Munich Security Conference and quoted by Reuters.

Western powers were concerned about Russia’s upgrades of air bases and air defense systems in Crimea, the report said, but added that “China perhaps represents even more of a challenge, as it introduces yet more advanced military systems and is engaged in a strategy to improve its forces’ ability to operate at distance from the homeland.”