Closing bell: Saudi main index rebounds to close at 11,070

Saudi Arabia’s Tadawul All Share Index closed at 11,070.77 with a total trading turnover recorded at SR5.86 billion ($1.56 billion) as 117 of the stocks advanced, while 94 declined. File
Saudi Arabia’s Tadawul All Share Index closed at 11,070.77 with a total trading turnover recorded at SR5.86 billion ($1.56 billion) as 117 of the stocks advanced, while 94 declined. File
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Updated 19 September 2023
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Closing bell: Saudi main index rebounds to close at 11,070

Closing bell: Saudi main index rebounds to close at 11,070

RIYADH: Rebounding after two days of decline, Saudi stocks closed higher on Tuesday with the benchmark index climbing 34.73 points or 0.31 percent.

Saudi Arabia’s Tadawul All Share Index closed at 11,070.77 with a total trading turnover recorded at SR5.86 billion ($1.56 billion) as 117 of the stocks advanced, while 94 declined.

Nomu, the Kingdom’s parallel market, edged up by 119.67 points to 22,409.39 and the MSCI Tadawul Index also went up by 0.52 percent to close at 1,426.45.

Thimar Development Holding Co. emerged as the best-performing stock on the main market, as its share price soared by 9.92 percent to SR28.25.

The share price of Filing and Packing Materials Manufacturing Co. hit a 52-week high of SR54.40. The company closed the day’s trading at SR54, up 7.09 percent compared to the opening value.

Al-Baha Investment and Development Co. performed poorly with its share price retreating by 6.25 percent to SR0.15.

The best-performing stock on Nomu was Molan Steel Co with its share price soaring by 8.72 percent to SR5.11.

On the announcements front, Saudi Arabia’s Capital Markets Authority on Monday said that it has approved the request from Arabian Shield Cooperative Insurance Co. to increase its capital from SR638.52 million to SR798.15 million by issuing 15.96 million ordinary shares.

According to a statement issued by the regulator, the capital hike is aimed at merging Alinma Tokio Marine Co. with Arabian Shield Cooperative Insurance Co.

The deal will also see the transfer of all the assets of Alinma Tokio Marine Co. and liabilities to Arabian Shield Cooperative Insurance Co. through a share swap.

Meanwhile, Professional Medical Expertise Co., listed on the Kingdom’s parallel market said that it has renewed and raised its existing credit facility with Banque Saudi Fransi.

According to a Tadawul statement, both parties agreed to renew the SR40 million credit facilities of 2022 and signed a deal to increase the contract by SR10 million, thus bringing the overall credit facility to SR50 million.


SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies
Updated 8 sec ago
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SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

SVC invests $30mn in IMPACT 46 Fund III to support pre-IPO companies

RIYADH: As part of its commitment to minimize financing gaps for startups, Saudi Venture Capital Co. has invested SR112.5 million ($29.9 million) in IMPACT46 Fund III.

According to a press release, the move is designed to empower late-stage companies in the region by investing in growth and pre-initial public offering phases.

A late-stage company is a business that has been in operation for a few years and has demonstrated viability.

The release added that the trust will aim to allocate a specific amount for early-stage startups, focusing primarily on seed rounds in the broader Middle East.


NVB launches CEO Club in the Kingdom, to work closely with Invest Saudi

NVB launches CEO Club in the Kingdom, to work closely with Invest Saudi
Updated 43 min 59 sec ago
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NVB launches CEO Club in the Kingdom, to work closely with Invest Saudi

NVB launches CEO Club in the Kingdom, to work closely with Invest Saudi

Aiming to foster a conducive work environment for global leaders, National Vision Business Co. Ltd. launched the first international club exclusively designed for chief executives, chairpersons, board members and diplomatic heads.

Fayez Al-Hamrani, managing director and CEO of NVB, stated that they are delighted to have launched the CEO Club in the Kingdom and will work to invite over 18,000 members worldwide to Saudi Arabia in the coming period.

He further noted that his company aims to promote qualitative local and international relations and create a unique work environment for industry leaders.

Underscoring the region’s solid political and economic position, he emphasized that the Kingdom’s presence in the G20 will enhance the role of the club by highlighting projects launched by Saudi Arabia, including NEOM, The Red Sea, Qiddiya and others.

“The Invest Saudi initiative is one of the key programs our company will work on in coordination with the Ministry of Investment,” he stated.

He said his company is coordinating with the relevant government and semi-government agencies to present the best international CEO award in 2024.


Saudi Arabia to host 12th session of OIC’s statistical committee

Saudi Arabia to host 12th session of OIC’s statistical committee
Updated 02 October 2023
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Saudi Arabia to host 12th session of OIC’s statistical committee

Saudi Arabia to host 12th session of OIC’s statistical committee

RIYADH: Amid efforts to enhance communication and collaboration between countries, Saudi Arabia is set to host the 12th session of the Organization of Islamic Cooperation statistical committee.

According to a statement by the General Authority for Statistics, the two-day meeting will take place from Oct. 3-4 in Jeddah.

The engagement cements the Kingdom’s standing globally and in the Arab world, given that this is the first time the gatherings have been held outside its headquarters in Turkey.


KSA expands coffee production to further diversify economy

KSA expands coffee production to further diversify economy
Updated 02 October 2023
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KSA expands coffee production to further diversify economy

KSA expands coffee production to further diversify economy

RIYADH: In an effort to further diversify its oil-dependent economy, Saudi Arabia is increasing its coffee production to achieve a relative balance with crops that yield high economic returns. The country aims to plant 1.2 million coffee trees by 2026, reported the Saudi Press Agency.

As the Kingdom ascends to the ranks of the world’s top 10 coffee-consuming nations, the government is prioritizing this commodity through various initiatives, aiming to stimulate sector growth and increase production. 

In a country where nearly 400,000 Arabica coffee trees yield over 800 tons of coffee annually, primarily in Jazan, Asir and Al-Baha regions, this shift underscores coffee’s burgeoning cultural and economic significance.

In commemoration of World Coffee Day, observed annually on Oct. 1, the Ministry of Environment, Water, and Agriculture has released substantial statistics about coffee farming in the southern region.

Currently, there are over 2,535 coffee farms in this area, including more than 500 model coffee farms. 

The emphasis on expanding Arabica coffee production in 15 additional governorates in the southwestern region aligns with the objectives of Vision 2030, demonstrating the government’s commitment to supporting the national economy through the coffee industry.

This development underscores the dual role of coffee as a cultural tradition and an economic force in the country.


First regional sukuk meet calls for scientific approach to deal with risks

First regional sukuk meet calls for scientific approach to deal with risks
Updated 26 min 51 sec ago
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First regional sukuk meet calls for scientific approach to deal with risks

First regional sukuk meet calls for scientific approach to deal with risks

RIYADH: Global financial experts called for a scientifically guided approach to managing the risks associated with sukuk transactions during a meeting in Cairo on Sunday. 

This event, held under the theme “The Importance of Strengthening the Role of Sukuks in Sustainable Development: Presentation and Analysis of International Experiences,” was organized by the Arab Administrative Development Organization in partnership with the Albaraka Forum for Islamic Economy and the Egyptian Islamic Finance Association.  

The Saudi Press agency reported that the discussions convened industry leaders to explore how a bond adhering to Islamic finance principles can power investments in sectors aligned with sustainability objectives. 

It focused on the dynamic role of sukuk in adapting to this evolving landscape.

Participants emphasized the necessity of providing an information base concerning sukuk-related investment opportunities, market conditions and the status of companies to facilitate investors in making decisions.

Moreover, they advocated for establishing a comprehensive plan to train and enhance the qualifications of professionals, equipping them with the requisite experience, skills and knowledge related to sukuk, spanning law, economics and financial accounting.

The speakers underscored the importance of regulatory and legislative frameworks for overseeing sukuk issuance and standardizing their transactions to boost stakeholder confidence.

Participants also highlighted the significance of forming cooperation agreements with bodies that support and oversee sukuk to expand industrial and green finance projects.

Efforts to create a transparent and well-governed Islamic financial market capable of efficiently mobilizing and allocating financial resources, thus expanding the customer base and attracting investors, were recommended.

They suggested implementing an integrated and suitable legislative and regulatory framework to provide legal protection, including tax benefits on returns from sovereign sukuk. 

In September, Moody’s Investors Service noted that issuing Shariah-compliant bonds in the first half of 2023 declined 28 percent to $66 billion, compared to $92 billion in the same period of the previous year. 

This fall is due to muted activities in key countries, including Saudi Arabia, Indonesia and Turkiye, amid robust commodity prices. 

“In the GCC (Gulf Cooperation Council) and Southeast Asia, robust commodity prices associated with sustained economic growth have translated into stronger fiscal positions and lower issuance needs,” said Moody’s in the report.