Saudi Arabia, Jordan eye trade relations over $1bn with new agreement

Saudi Arabia, Jordan eye trade relations over $1bn with new agreement
Delegates at the signing ceremony (supplied)
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Updated 05 March 2022

Saudi Arabia, Jordan eye trade relations over $1bn with new agreement

Saudi Arabia, Jordan eye trade relations over $1bn with new agreement

A bilateral agreement which could be worth over $1 billion has been signed by business leaders from the Saudi Arabian city of Makkah and Jordan’s Amman.

A memorandum of understanding was agreed between the Makkah Chamber of Commerce and Industry and its Amman counterpart which will focus on developing bilateral economic relations between the two cities.

The deal was signed during a Jordanian industrial delegation’s visit to the MCCI, headed up by the Jordanian Minister of Industry, Trade and Supply Yousef Mahmoud Al-Shamali and the Chairman of Amman Chamber of Industry, Fathi Jaghbir.

“There is a need to strengthen these relations to rise above $1 billion, especially since Amman is proud of Saudi products, and Saudi investments are the most important in Jordan,” said Al-Shamali.

The deal holds considerable significance as trade exchange between Saudi Arabia and Jordan was still “below expectation” despite common interests, pointed out Jaghbir.

“Saudi Arabia is the second-largest commercial partner for Jordan,” he added.

Jaghbir also called for the establishment of executive offices and liaison officers in the chambers of commerce in both countries to put these agreements and partnerships into force.

Some 44 Jordanian companies from various sectors participated in an exhibition organized on the sidelines of the meeting.

Al-Shamali and the Saudi Minister of Commerce and Investment Majid bin Abdullah Al-Qasabi also explored ways to strengthen bilateral trade and stimulate each country’s private sector, according to the statement.

They discussed preparations for an upcoming joint trade committee meeting, which will focus on increasing bilateral trade and economic cooperation.


Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO
Updated 17 min 10 sec ago

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

Oil Updates — Crude climbs; Shell to invest in Malaysia oil; Genel Energy appoints new CEO

RIYADH: Oil prices jumped nearly 3 percent on Monday, as the Organization of the Petroleum Exporting Countries, known as OPEC+, considers cutting output by more than 1 million barrels a day in what would be its biggest reduction since the pandemic.

Brent crude futures rebounded $2.44, or 2.87 percent, to $87.58 a barrel by 10.13 a.m Saudi time, after settling down 0.6 percent on Friday.

US West Texas Intermediate crude was also up 2.87 percent, or $2.40, at $81.89 a barrel, after the previous session’s loss of 2.1 percent.

Shell to invest in second Malaysia oil, gas project in a month

Shell announced a second investment in Malaysia’s oil and gas sector in a month as the major and its partners, including Petronas, aim to revive output in an environment of tight global supply.

Shell’s decisions come after the war in Ukraine disrupted Russian oil and gas supplies and boosted prices. Oil and gas producers in Asia are struggling to sustain output after years of under-investment in the sector as international companies scaled back to focus on exploration and production in Africa and the Americas.

Sabah Shell Petroleum Co, a Malaysian unit of Shell, said on Monday it will invest in phase 4 of the Gumusut-Kakap-Geronggong-Jagus East deepwater offshore development project along with its partners. No amounts were given.

The GKGJE phase 4 development is a subsea tie-back project that is expected to achieve first oil in late 2024, Shell Malaysia said in a statement.

Shell’s partners in the GKGJE project include ConocoPhillips Sabah Ltd., Petronas Carigali, Sabah Oil Limited, PT Pertamina Malaysia Eksplorasi Produksi and others.

Genel Energy appoints Weir as permanent CEO

Iraqi Kurdistan-focused oil firm Genel Energy appointed Paul Weir as its full-time CEO on Monday.

Weir, who previously served as the chief operating officer, was appointed as the interim CEO in June.

(With input from Reuters)


TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell
Updated 26 min 10 sec ago

TASI gains ahead of OPEC+ meeting: Opening bell

TASI gains ahead of OPEC+ meeting: Opening bell

RIYADH: The Saudi main index rose in Monday’s trading session as investors awaited the meeting of the Organization of the Petroleum Exporting Countries Plus to be held later in the week.

The Tadawul All Share Index started the session 0.53 percent higher to reach 11,548; the parallel market Nomu started almost flat at 19,956, as of 10:06 a.m. Saudi time.

Saudi oil giant Aramco started with a 0.42 percent increase, while Rabigh Refining and Petrochemical Co. was up 1.44 percent.

The Saudi National Bank, the Kingdom’s largest lender, added 1.12 percent, while Saudi British Bank increased by 2.12 percent.

The Kingdom’s most valued bank Al Rajhi gained 0.61 percent, while Alinma Bank gained 0.68 percent.

Mouwasat Medical Services Co. gained 0.69 percent, after completing the acquisition of 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal.

Najran Cement Co. grew 1.26 percent, after declaring cash dividends of SR0.25 per share to shareholders in the first half of 2022.

Leejam Sports Co. added 0.64 percent, following the opening of a new Ladies Xpress Fitness Center in Riyadh on Oc. 2, bringing the total number of its centers inside and outside the Kingdom to 154.


Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years
Updated 26 min 39 sec ago

Credit Suisse fights for survival as default swaps hit highest level in 10 years

Credit Suisse fights for survival as default swaps hit highest level in 10 years

RIYADH: Switzerland-based global investment bank and financial services firm Credit Suisse is fighting for its survival after the credit default swaps jumped 6 basis points to close to 247 basis points on Friday, the highest level in at least 10 years. 

According to a Financial Times report, Credit Suisse executives spent the weekend reassuring large clients, counterparties and investors and have requested less than 100 days to deliver a new turnaround strategy. 

Credit Suisse has been facing turbulence in the market for at least one year. In March 2021, the company had a market capitalization of 30 billion Swiss francs ($30.35 billion), while it is just 10 billion Swiss francs now. 

On Friday, Credit Suisse CEO Ulrich Koerner reassured staff that the bank has a strong capital base and told the employees that he will send regular updates on the progress until it announces its new strategic plan on Oct. 27. 

“I am conscious that there is lots of uncertainty and speculation both outside and within the company. While you will appreciate that I am unable to share details of our transformation plans before Oct. 27, I also want to make sure that you hear from me directly during this challenging period,” Korner told employees in a memo dated Sept. 30. 

According to a Bloomberg report, Credit Suisse is now busy finalizing plans that will likely see sweeping changes to its investment bank and may even result in cutting its workforce by thousands. 

Last week Credit Suisse revealed that it is considering a possible sale of some assets and business as part of its strategic plan. Bloomberg reported that the bank is eyeing selling its securitized products trading unit, and is weighing the sale of its Latin American wealth management operations excluding Brazil. 

The report added that Credit Suisse is also considering reviving the First Boston brand name. 


Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday
Updated 43 min 4 sec ago

Here’s what you need to know before Tadawul trading on Monday

Here’s what you need to know before Tadawul trading on Monday

RIYADH: The Saudi main index ticked up in its first trading session of October as investor recession fears subsided.

The Tadawul All Share Index ended 0.72 percent higher to reach 11,487 on Sunday; the parallel market Nomu edged 0.34 percent higher to 19,939.

The main index of Oman also ended Sunday’s session in green, adding 1 percent. 

However, the remaining Gulf stock markets ended in the red, led by the main index of Kuwait which fell 2.7 percent, followed by the Qatari index dropping 1.2 percent.

Outside the Gulf, Egypt's blue-chip index fell 1 percent, with the majority of its stocks falling.

In the energy sector, Brent crude reached $87.57 per barrel, while WTI crude traded at $81.87 per barrel as of 9:16 a.m. Saudi time.

Stock news

Mouwasat Medical Services Co. has completed the acquisition of 51 percent of Jeddah Doctors Co. in a SR102 million ($27 million) deal.

Najran Cement Co. said it will distribute cash dividends of SR0.25 per share to shareholders in the first half of 2022.

Unitholders of Derayah Financial are set to receive SR0.16 per share in cash dividends for the third quarter of 2022.

Arab National Investment Co. has changed its name to ANB Capital Co. in compliance with Capital Market Law issued by Royal Decree.

Leejam Sports Co. opened a new Ladies Xpress Fitness Center in Riyadh on Oct. 2, bringing the total number of its centers inside and outside the Kingdom to 154. 

Sumou Real Estate Co. signed an agreement to develop an over 3 million square meter plot of land in Riyadh with Adeer Asar Real Estate Co.

Calendar

October 5, 2022

End of of IPO book-building process

OPEC+ meeting


Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months
Updated 03 October 2022

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

Market capital of Saudi Exchange jumps 8% to hit $3tn in first 9 months

RIYADH: Saudi Exchange’s market capitalization jumped over 7.5 percent to reach SR10.8 trillion ($2.8 trillion) at the end of the first nine months of the year compared to a year earlier.

This comes despite the total value of shares traded during the first nine months falling by 21.5 percent from the previous year to SR1.4 trillion, while the total volume traded decreased by 37 to reach SR35.35 billion, the latest Saudi Exchange data revealed.

Tadawul All Share Index closed at 11,405 points at the end of the first nine months of 2022, down 90.44 points or 0.79 percent from last year’s close.

The highest close level for the index during the period was 13,820.35 points on May 8.

The total number of transactions executed decreased by 4.25 percent during the same period and reached SR68 million compared to 2021.

The Number of trading days during the third quarter of 2022 was 184, compared with 185 during the first nine months of 2021.