UAE’s non-oil exports jumps 44% in first half of 2021

UAE’s non-oil exports jumps 44% in first half of 2021
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Updated 14 October 2021

UAE’s non-oil exports jumps 44% in first half of 2021

UAE’s non-oil exports jumps 44% in first half of 2021

Jeddah: The UAE's non-oil exports jumped by 44 percent in the first half of 2021 to reach SR919 billion ($245 billion), according to the UAE’s ministry of economics.

The rise represents a 41 percent growth compared to the first half of 2019.

The gold trade helped fuel the export increase, with the metal seeing a 48 percent growth compared to 2020.

Exports of other non-oil commodities rose by 42 percent, according to the statement.


Saudi Arabia, Kuwait, UAE reiterate support for Bahrain's fiscal program

Saudi Arabia, Kuwait, UAE reiterate support for Bahrain's fiscal program
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Updated 8 sec ago

Saudi Arabia, Kuwait, UAE reiterate support for Bahrain's fiscal program

Saudi Arabia, Kuwait, UAE reiterate support for Bahrain's fiscal program
  • The fiscal balance program - a set of reforms aimed at balancing the budget - was linked to the pledged $10 billion

Saudi Arabia, Kuwait and the United Arab Emirates reiterated their support for Bahrain's plans to balance its budget, a move expected to help their neighbor in the debt capital markets despite delays in plans to fix its heavily indebted finances.


The three Gulf allies extended a $10 billion aid package to Bahrain in 2018 to help it avoid a credit crunch.

Last month Bahrain said that due to the coronavirus crisis last year, it had postponed the target year for a balanced budget to 2024, and announced plans to hike a value-added tax to boost state coffers.


The fiscal balance program - a set of reforms aimed at balancing the budget - was linked to the pledged $10 billion.

The ministers of finance of wealthier Saudi Arabia, Kuwait, and the UAE met with Bahrain's finance minister on Oct. 19 to discuss Bahrain's progress in improving its finances.

"The ministers welcomed the efforts made by the government of Bahrain in implementing the Fiscal Balance Program, and the progress made by the government despite the challenges posed by the COVID-19 pandemic", the three countries said in a joint statement.

"The Ministers affirmed their support to the Kingdom of Bahrain’s efforts in pursuing further reforms to enhance fiscal stability and strengthen sustainable economic growth."

Bahrain's delaying of its fiscal balance program, which pushed back the zero-deficit target by two years, was seen as unlikely to deter investors from buying its debt due to expectations of continued support from richer Gulf allies, bankers and analysts have previously told Reuters.

Bahrain's public debt climbed to 133 percent of gross domestic product (GDP) last year from 102 percent in 2019, according to the International Monetary Fund.

S&P forecasts Bahrain's budget deficit, which was 16.8 percent of GDP last year, to average 5 percent between 2021 and 2024, excluding the impact of a possible hike in value-added tax.

The Arab Monetary Fund assessed the fiscal program achievements, the statement said.

 

 

 

 


Saudi Minister uses US trip to urge investors to 'seize opportunities' in the Kingdom

Saudi Minister uses US trip to urge investors to 'seize opportunities' in the Kingdom
Updated 1 min ago

Saudi Minister uses US trip to urge investors to 'seize opportunities' in the Kingdom

Saudi Minister uses US trip to urge investors to 'seize opportunities' in the Kingdom

The Saudi minister of investment will stress the Kingdom's position as a major global investment destination during his visit to the US, according to the Saudi Press Agency. 

Khalid Al-Falih will meet a group of US officials on Wednesday to strengthen the existing strategic trade and investment partnership between the two countries, the agency reported. 

“We consider American investors to be our partners, and we hope that they will seize the tremendous opportunities that are presented in the transitional stage we are living in,” Al-Falih said in a statement. 

The trip follows the launch of the National Investment Strategy by the crown prince, Mohammed bin Salman, last week.

"The National Investment Strategy will bring about a fundamental change in the investment landscape in Saudi Arabia, which will provide unprecedented opportunities and advantages for investors,” the minister noted. 


Sovereign Fund of Egypt CEO bids to double assets to $1.8bn in a year

Sovereign Fund of Egypt CEO bids to double assets to $1.8bn in a year
Updated 11 min 4 sec ago

Sovereign Fund of Egypt CEO bids to double assets to $1.8bn in a year

Sovereign Fund of Egypt CEO bids to double assets to $1.8bn in a year

The Sovereign Fund of Egypt plans to double its assets from between EGP13-14 billion ($827-$891 million) to as much as EGP28 billion next year, said chief executive Ayman Soliman, reported Al Sharq.

Soliman said the fund’s drive for growth will focus on infrastructure, water desalination and renewable energy, such as the production of green energy with Norwegian green energy firm Scatec and Abu Dhabi-Dutch joint venture fertiliser producer Fertiglobe.

Last week, the fund signed a deal with Scatec and Fertiglobe to build a 50 to 100 megawatt ammonia plant in Ain Sokhna, 75 miles east of Cairo, for an undisclosed sum, which it said, “is the first step towards developing a green hydrogen hub in Egypt”.

The head of the fund said its investments over the next 12 months would also include warehouses for strategic goods, medicine and education.

The fund, established in 2018, says it was set up to co-invest with local and foreign financial partners to “increase the private sector’s role in the economy and create jobs for Egypt’s young population”


TASI crosses 11,822 point mark in early trade: Market wrap

TASI crosses 11,822 point mark in early trade: Market wrap
Updated 42 min 31 sec ago

TASI crosses 11,822 point mark in early trade: Market wrap

TASI crosses 11,822 point mark in early trade: Market wrap

RIYADH: Saudi Arabia’s main market, Tadawul, traded up 0.3 percent on Wednesday morning, at 11,822 points.

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

Saudi Fisheries Co. signed a non-binding Memorandum of Understanding with the Arabian Agricultural Services Co. to consider future cooperation regarding the factory at Al-Huraydah in Aseer region.

National Agricultural Marketing Co. (Thimar) signed a framework agreement with AlKhair Capital for advisory services.

Sipchem recorded a net profit of SR2.270 billion in the most recent nine-month period.

Advanced Petrochemical Co.’s board recommended a 6.5 percent cash dividend for Q3 2021. 

Al Rajhi REIT Fund appointed a legal counsel, after negotiations and judicial sessions, for the litigation against Al-Fouzan Trading & Contracting Co.

The board of Gulf Union Alahlia Cooperative Insurance has announced plans to increase capital by offering right issues

 


China raises $4bn in U.S. dollar bond after attracting strong investor demand

China raises $4bn in U.S. dollar bond after attracting strong investor demand
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Updated 55 min 3 sec ago

China raises $4bn in U.S. dollar bond after attracting strong investor demand

China raises $4bn in U.S. dollar bond after attracting strong investor demand
  • The strong appetite came after finance ministry officials told investors on a call on Monday they were confident cash-strapped developer Evergrande posed no systemic risk

China has raised $4 billion through a U.S. dollar sovereign bond issue, a term sheet showed, with the offer attracting robust demand from offshore investors despite an ongoing regulatory crackdown across industries and problems in the property market.


Investor bids for the four tranche deal reached $23.2 billion, nearly six times the amount raised, official statistics published by advisers showed on Wednesday.


The sale comes at a tricky time for China: its economy is slowing, while investors are worried about a regulatory crackdown and potential contagion from China Evergrande Group's debt problems.


The strong appetite came after finance ministry officials told investors on a call on Monday they were confident cash-strapped developer Evergrande posed no systemic risk, three people with knowledge of the matter said.

The sources could not be named as the information had not been made public.


The Finance Ministry did not immediately respond to Reuters' request for a comment.


A People's Bank of China official also said on Friday that the spillover effect of Evergrande's debt problems is controllable and individual financial institutions' risk exposures are not big.


Evergrande shares remain in a trading halt on the Hong Kong Stock Exchange after it missed a number of offshore bond interest repayments in the past few weeks. It is grappling with more than $305 billion worth of liabilities.


The pricing for China's dollar-denominated sovereign bond was set at 6 basis points (bps) above U.S. Treasuries for the three-year tranche, 12 bps over for the five-year, 23 bps higher for the 10-year and 53 bps above for the 30-year tranche.


Final pricing for the deal was significantly lower than first flagged.


Initial pricing guidance was given to investors at 35 bps over Treasuries for the three-year tranche, 45 bps on the five-year tranche, 55 bps on the 10-year tranche and 85 bps on the 30-year tranche.


The spreads on each of the tranches were the lowest ever for a sovereign bond issue from China, the three sources with direct knowledge of the matter said.


The three- and 10-year tranches each raised $1 billion, the 5-year raised $1.5 billion and the 30-year $500 million, the term sheet showed.


Asian banks were strong buyers of the shorter dated bonds because of their capital requirements, while U.S. investors were more active in purchasing the longer dated tranches, statistics on the deal showed.


The bond offering comes as the world's second-largest economy posted its slowest pace of growth in a year in the third quarter, hurt by power shortages, sporadic COVD-19 outbreaks and a weakening property sector.


Investors questioned the economic implications of the power cuts but were assured China's fundamentals remained strong, the sources with direct knowledge said.


The finance ministry also flagged that China would likely carry out a euro denominated bond before the end of the year, copying the pattern of issuance it initiated in 2020, the sources said.


The ministry did not immediately respond to a request for comment.