Banking, petrochemical shares boost Tadawul

The Tadawul All Share Index rose 0.5 percent on Sunday. (Reuters)
Updated 16 July 2019

Banking, petrochemical shares boost Tadawul

  • In Saudi Arabia, the Tadawul main index rose 0.5 percent, with banks and petrochemical companies leading the gains

DUBAI: Major Gulf stock markets closed higher on Sunday, mirroring gains late last week in global markets, and supported by some companies’ positive second-quarter results.In Saudi Arabia, the Tadawul main index rose 0.5 percent, with banks and petrochemical companies leading the gains.Dubai’s Arqaam Capital said in a research note last week it expected Saudi Arabia to deliver the strongest second-quarter earnings performance in the Gulf.

“We, however, expect growth to peter out as (the) rate cut cycle kicks in, given the significant positive ALM (asset liability management) position of KSA (Saudi) banks,” it said.
Alinma Bank rose 1.2 percent, while Al-Rajhi Banking and Investment Corp gained 1 percent.  
Mobile Telecommunications Company Saudi Arabia (Zain Saudi) gained 3.2 percent after reporting an 11 percent increase in second-quarter revenues to SR2.06 billion ($549.26 million).
Petchem firms Saudi Kayan Petrochemical Co. and Saudi Basic Industries Corp. (SABIC) rose 1.2 percent and 0.5 percent, respectively.
The Dubai index rose 0.7 percent, lifted by property developers Union Properties, up 3.6 percent, and heavyweight Emaar Properties, up 1 percent.
In Abu Dhabi, where the index was up 0.1 percent, blue chip Aldar Properties gained 3.9 percent.  
The company said last week it had partnered with the Abu Dhabi government to deliver projects worth AED5 billion ($1.36 billion).
Abu Dhabi-based Waha Capital was among the top performers, up 5.3 percent.   
Waha, which has seen its stocks tumble around 50 percent since the beginning of the year, has been in talks with another investment firm, Gulf Capital, regarding a merger, sources told Reuters earlier this year.
Recent changes at management level might suggest the company is charting a new growth strategy.
In Egypt, the index shed 1 percent, as Orascom Investment Holding dropped 3.9 percent. Orascom’s stocks last week soared after the firm’s board withdrew an offer to acquire Nile Sugar.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.