KSA has strongest banking system among GCC, S&P Global Ratings says

KSA has strongest banking system among GCC, S&P Global Ratings says
The rating firm said the most vulnerable banking system among GCC countries is the UAE. (Shutterstock)
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Updated 27 September 2021

KSA has strongest banking system among GCC, S&P Global Ratings says

KSA has strongest banking system among GCC, S&P Global Ratings says

JEDDAH: S&P Global Ratings said on Sunday that the COVID-19 pandemic and last year's oil price crash did not affect all Gulf Cooperation Council (GCC) banking systems in the same way, highlighting that the Saudi Arabian banking system appeared to be the strongest in the current environment. 

"We expect GCC banks' asset quality indicators to deteriorate only slightly thanks to regulatory and government support measures, and improving economic sentiment," the rating firm said in the comment.

According to S&P Global Ratings, Saudi banks will continue to benefit from mortgage growth and the implementation of Vision 2030, which it expects will boost asset quality and profitability indicators.

The rating firm said the most vulnerable banking system among GCC countries is the UAE, where the pandemic affected sectors such as hospitality, trade, and real estate sector.

"In our view, UAE banks are among the most vulnerable in the GCC region, as a result of their high exposure to real estate and other hard-hit sectors, while Saudi banks are better placed thanks to stronger profitability," it said.

"Other issues include Qatar's increasing net external debt and Kuwait's fiscal impasse, which may not just hurt the economy but also question the government's ability to support the banking system in a predictable and timely manner," it added.


Tunisia in talks with Saudi Arabia, UAE for financial support

Tunisia in talks with Saudi Arabia, UAE for financial support
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Updated 16 sec ago

Tunisia in talks with Saudi Arabia, UAE for financial support

Tunisia in talks with Saudi Arabia, UAE for financial support
  • The nation is looking to secure $4 billion from the IMF over three years

CAIRO: Tunisia has reached out to Saudi Arabia and the UAE for financial assistance, while talks with the International Monetary Fund are also ongoing, a central bank official said.

Central bank official Abdelkarim Lassoued said an agreement with the two gulf states could be reached soon, amid mounting pressure to repay its debts, as reported by Asharq.

The nation is looking to secure $4 billion from the IMF over three years, which will be used to meet its foreign commitments. 

“There will be no problem in repaying debts” after the deal, Lassoued said. 

Tunisia has been battling long-running economic troubles since July as the country’s political crisis continues to deepen, leading Moody’s Investor Service to cut its assessment of the country by a notch last week.


Saudi petroleum firm Aldrees records 50% net profit growth as pandemic threat eases


Saudi petroleum firm Aldrees records 50% net profit growth as pandemic threat eases

Updated 6 min 36 sec ago

Saudi petroleum firm Aldrees records 50% net profit growth as pandemic threat eases


Saudi petroleum firm Aldrees records 50% net profit growth as pandemic threat eases

  • This growth is due to a rise in sales of transport and petroleum services sector, as well as the reevaluation of its investments

Saudi Arabia’s Aldrees Petroleum and Transport Services Company reported a 50 percent net profit rise in the first 9 months of 2021, signaling a strong recovery from COVID-19 pandemic. 

Profit rose from from SR81.6 million during the first nine months of 2020, to SR122.7 million in the same period this year, the company said in a bourse filing.

This growth is due to a rise in sales of transport and petroleum services sector, as well as the reevaluation of its investments.

Revenues have almost doubled in the third quarter of 2021, compared to the same time the previous year.  

The new figures came despite higher marketing, general, administrative expenses, financial and Zakat charges, as well as a decrease in the joint venture’s investment profit. 


TASI Stocks up by 0.6 percent in early trading: Market wrap

TASI Stocks up by 0.6 percent in early trading: Market wrap
Updated 16 min 13 sec ago

TASI Stocks up by 0.6 percent in early trading: Market wrap

TASI Stocks up by 0.6 percent in early trading: Market wrap
  • Aldrees net profit surges 50 percent to SR122.7 million for the first nine months of 2021

RIYADH: Saudi Arabia’s main market, Tadawul, traded 0.6 percent higher on Sunday morning, at 11,750 points.

Here’s a wrap of market movements as of 10:30 a.m. Riyadh time:

Aldrees net profit surges 50 percent to SR122.7 million for the first nine months of 2021. 

Derayah-REIT goes ex dividend today. 

Saudi Real Estate Co.’s subsidiary, Saudi Real Estate Infrastructure Co. (Binyah), signed a contract with Diriyah Gate Development to carry out Wadi Hanifa's infrastructure work with the Diriyah Development Authority.

AlKathiri Holding Co’s subsidiary, Alian Industry Co. received a land plot of 7,000 square meters from the Abdul Rahman Al-Rashed Company to build a ready-mixed concrete plant.

UCA recommends capital hike through SR300 million right Issues.

“The Market Authority” approves the public offering of the units of the “Capital Flexible Investment Fund for Saudi Equities”.

Nayifat Finance announces the initial prospectus for subscription.

Savola Group’s wholly-owned subsidiary, Savola Foods Co., completed the acquisition of 100 percent of Bayara Holding Limited. 


Egypt, Cyprus sign power grids interconnection agreement

Egypt, Cyprus sign power grids interconnection agreement
Updated 24 min 11 sec ago

Egypt, Cyprus sign power grids interconnection agreement

Egypt, Cyprus sign power grids interconnection agreement

CAIRO: Egypt and Cyprus signed a memorandum of understanding to study the establishment of the electrical interconnection project between the two countries, which provides direct connection for the exchange of electricity between them.

The Egyptian Minister of Electricity and Renewable Energy, Mohamed Shaker said in a statement that the agreement is a necessary preparations for signing the final contracts for the electrical interconnection project between Egypt, Cyprus and Greece.

Shaker added that the final procedures are currently underway to review the studies of the electrical interconnection project with Cyprus and Greece, in preparation for the start of implementing the project with a capacity of 2,000 megawatts, and it may reach 3,000 megawatts, explaining that the link with Cyprus allows Egypt to link with all European countries after it is completed, connecting it with Crete and then Greece.

Egypt and Greece concluded a similar agreement last week, paving the way for an underwater cable to transport electricity generated from clean energy sources from North Africa to Europe, the first infrastructure of its kind in the Mediterranean region.


Saudi Cura gets $4mn Series-A financing from ELM and Wa’ed

Saudi Cura gets $4mn Series-A financing from ELM and Wa’ed
Updated 40 min 30 sec ago

Saudi Cura gets $4mn Series-A financing from ELM and Wa’ed

Saudi Cura gets $4mn Series-A financing from ELM and Wa’ed

RIYADH: Cura, a Saudi telehealth startup announces a SR15 million Series-A investment from ELM and Wa’ed, the entrepreneurship arm of Saudi Aramco, according to a statement today.