Saudi Arabia’s financial markets exceed 2022 strategic plan targets

Saudi Arabia’s financial markets exceed 2022 strategic plan targets
The Kingdom’s Capital Market Authority witnessed an uptick in 2022, with 49 new listings, beating the projected 24 for that year. Shutterstock
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Updated 25 September 2023
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Saudi Arabia’s financial markets exceed 2022 strategic plan targets

Saudi Arabia’s financial markets exceed 2022 strategic plan targets

RIYADH: Reflecting robust economic growth, Saudi Arabia’s financial markets reported a remarkable performance by the end of 2022, surpassing the strategic plan goals for 2022 in a number of indicators. 

The Kingdom’s Capital Market Authority witnessed an uptick in 2022, with 49 new listings, beating the projected 24 for that year, marking a completion rate of 204 percent, according to a statement by Mohammed El-Kuwaiz, chairman of the authority. 

The stock market’s capitalization as a proportion of the country’s gross domestic product also increased by 91 percent, exceeding the initial Vision 2030 strategic objective of 77 percent. 

Furthermore, the debt instruments market had initially aimed to comprise 18.7 percent of the GDP. However, by the end of the year, it exceeded this target, constituting 32 percent of the GDP, achieving a completion rate of 171 percent. 

El-Kuwaiz noted that these figures and other achievements contributed to making the market a model to be followed among the regional markets. 
He added: “As we celebrate this year’s National Day, the Kingdom has advanced 7 positions in the annual World Competitiveness Yearbook issued by the International Institute for Management Development for 2023, reaching the 17th position globally out of 64 countries that are the most competitive in the world, and the third among the G20 countries, supported by strong economic and financial performance in 2022 and improved business legislation.” 

Additionally, by the close of the second quarter of 2023, the financial market witnessed a significant uptick in numbers.   

Investment funds soared to a historic peak of 1,130, marking a 34.68 percent surge from the 839 funds in the same period last year.   

Participants across both general and specialized investment funds climbed 33.5 percent year on year, reaching 901,896 from 675,465 in the same timeframe the previous year.   

The second quarter of this year also saw the ownership value of foreign investors in the primary stock market elevate to SR298.45 billion ($79.5 billion). This is a 5.1 percent increase from SR284.01 billion recorded in the second quarter of 2022. 

With this momentum, the CMA is now outlining its strategy spanning 2024-2026. Central to its blueprint is the objective to spur sustainable advancements in the financial realm, breaking new grounds and further strengthening the national economic fabric, El-Kuwaiz noted.


Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal
Updated 08 December 2023
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Saudi Arabia, Russia stress need for OPEC+ to commit to deal

Saudi Arabia, Russia stress need for OPEC+ to commit to deal

RIYADH: Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin stressed in their meeting in Riyadh the need for OPEC+ members to commit to the group’s agreement, Saudi Press Agency said on Thursday, citing a joint statement.
They welcomed the close cooperation between their nations and the successful efforts of OPEC+, of which both are members, to provide stability in global oil markets.
They said it is important that this cooperation continues and stressed the need for all member states to adhere to OPEC+ agreements in a way that serves the interests of producers and consumers and supports the growth of the global economy.
OPEC+ is a group that constitutes the Organization of the Petroleum Exporting Countries and Russia and other allies.
Regarding Sudan, the two leaders stressed the importance of building on the Jeddah Declaration, which was signed on May 11 with the aim of protecting civilians during the conflict in the North African country.
On Iran, Putin welcomed the resumption of diplomatic relations between Riyadh and Tehran and expressed hope that this would lead to enhanced stability and security in the region.
Both sides also stressed their full support for regional and international efforts to reach a comprehensive political solution to the crisis in Yemen.
The two leaders said they were keen to enhance mutual and joint investments in their countries.
They welcomed a 46 percent increase in the volume of bilateral trade in 2022, compared with 2021, and affirmed their intentions to continue to work together to enhance and diversify trade relations.
Turning to the crisis in Ukraine, the Russian side praised the humanitarian and political efforts undertaken by Saudi Arabia.


Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject

Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject
Updated 07 December 2023
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Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject

Saudi crown prince reveals urban plan and branding for Qiddiya City megaproject
  • He says the city aims to be the foremost global destination for entertainment, sports and culture, and to boost the Kingdom’s economic growth, international standing and strategic position
  • Qiddiya’s branding adopts ‘play’ as its main concept, based on research showing this to be vital for cognitive development, emotional expression, social skills, creativity and health

RIYADH: Saudi Arabia’s Crown Prince Mohammed bin Salman on Thursday revealed the urban plan and global branding for Qiddiya City, a massive entertainment project under construction on the outskirts of Riyadh.

The crown prince, who chairs the board of directors of the Qiddiya Investment Company, said the city aims to quickly establish itself as the foremost global destination for entertainment, sports and culture, which will benefit the Kingdom by helping to boost its economic growth, international standing and strategic position, the Saudi Press Agency reported.

It is also designed to improve quality of life, the prince added, and to position Riyadh as one of the top 10 economies in the world.

The investment in Qiddiya is a cornerstone of Saudi Vision 2030, he said, which aims to develop and diversify the Kingdom’s economy, reducing the country’s reliance on oil revenues and creating thousands of job opportunities for Saudi youth.

Qiddiya, which is one of the major projects overseen by the Public Investment Fund, is envisioned as an essential source of support for the Kingdom’s ambitious tourism and economic goals, in addition to improving the quality of life for residents and visitors. It is expected to help attract local, regional and international investors, which will in turn provide support to Riyadh.

Work on the Qiddiya project, in the form of about SR10 billion ($2.7 billion) invested in construction projects, began in 2019.

It was revealed that the branding for Qiddiya will adopt as its main motif the concept of “play,” based on decades of research showing this to be vital for cognitive development, emotional expression, social skills, creativity and physical health.

Studies have also shown the positive effects of recreational activities on society, including their ability to help overcome differences and bridge divisions between individuals, and enhance empathy and social cohesion.

Qiddiya City, described as a one-of-a-kind destination that promises to provide endless fun and excitement for residents and visitors through unrivaled entertainment, sports events and activities, culture and exceptional urban living, will eventually include 600,000 residents and 60,000 buildings in an area covering 360 square kilometers.

It is expected to create more than 325,000 jobs, generate a nominal gross domestic product of SR135 billion a year, and attract 48 million visitors annually.

Located about 40 minutes from the center of Riyadh, overlooking the stunning scenery of the Tuwaiq mountains, Qiddiya City’s attractions will include a gaming and esports district, a motorsports racetrack, golf courses, a massive water park, and the Six Flags Qiddiya theme park. It will also be home to a sports stadium that includes the world’s largest Olympic museum. Its first facilities are expected to open within two years.


Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 
Updated 07 December 2023
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Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

Closing Bell: TASI ends green at 11,225 points with $1.62bn trading volume 

RIYADH: Saudi Arabia’s Tadawul All Share Index experienced a slight rise on Thursday, gaining 51.33 points, or 0.46 percent, to close at 11,225.35.   

The benchmark index saw a total trading turnover of SR6.1 billion ($1.62 billion), with 107 listed stocks advancing and 107 retreating.  

Moreover, the parallel market Nomu witnessed an increase of 399.17 points, or 1.70 percent, to end the day at 23,949. The market had 24 listed stocks advancing and 31 retreating.  

The MSCI Tadawul Index also saw an increase, inching up by 4.56 points, or 0.32 percent, to close at 1,439.56.  

TASI’s top performer was Development Works Food Co., which saw its share price surge by 9.92 percent to SR135.20.   

Other significant gainers included Al-Omran Industrial Trading Co. and National Agricultural Development Co., with their share prices rising by 7.99 percent and 5.66 percent to SR37.85 and SR28, respectively. Leejam Sports Co. and ACWA Power Co. also reported strong performances.  

Conversely, Al-Baha Investment and Development Co. experienced a decline, with its share price dropping by 6.67 percent to SR0.14.   

Taiba Investments Co. and Savola Group also faced downturns, with their share prices decreasing by 5.35 percent and 3.38 percent to SR25.65 and SR38.55, respectively. Arabian Pipes Co. and Saudi Reinsurance Co. were among the day’s worst performers.  

On the announcement front, Riyadh Cables Group Co. has completed the second phase of its share buyback program, designed to support its long-term employee stock incentive program.   

The buyback, which occurred between Oct. 31 and Nov. 30, 2023, saw the repurchase of 252,500 shares, amounting to SR18.89 million, at an average price of SR74.82 per share, as per the company’s announcement to Tadawul.  

This step is part of a 12-month plan that commenced following approval at the company’s extraordinary general meeting.

Following this phase, Riyadh Cables’ treasury now holds 282,500 shares, acquired at an average price of SR74.68 each.  

The company has indicated that this buyback process is not expected to have a significant impact on its financial results. This move aligns with Riyadh Cables’ strategy to invest in its workforce while ensuring the company’s continued financial stability and growth.  


Saudi-Vietnamese Joint Committee explores ways to boost trade

Saudi-Vietnamese Joint Committee explores ways to boost trade
Updated 07 December 2023
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Saudi-Vietnamese Joint Committee explores ways to boost trade

Saudi-Vietnamese Joint Committee explores ways to boost trade

RIYADH: Trade exchange between Saudi Arabia and Vietnam is on course to prosper following discussions in a ministerial meeting.  

The fifth Saudi-Vietnamese Joint Committee, taking place in the Asian country’s capital of Hanoi, saw the participation of the Kingdom’s Assistant Deputy Minister for Mining Enablement Abdulaziz Al-Ahmadi, Vietnam’s Deputy Minister of Industry and Trade Phan Thi Thang, as well as joint representatives from several government agencies.  

During the meeting, the two nations reviewed the trade volume between them and expressed their intent to enhance it, broadening the range of exchanged products.  

This aligns with both countries’ efforts in recent years to bolster economic and trade relations.  

During the talk, the officials also discussed implementing support initiatives to facilitate trade exchange by encouraging the exchange of trade missions and participating in the economic activities held in the two countries.

The meeting also shed light on ways to enhance relations and common interests in accordance with the economic, scientific, and technical cooperation agreement concluded in Hanoi on May 25, 2006.

Additionally, both sides discussed increasing the volume of investments in priority sectors between them and elevating partnerships in trade, exports, and investments.

As the assembly concluded, both nations pledged to continue working to develop bilateral cooperation in key areas, including foreign relations, trade, energy, and industry.

Additional sectors included investment, finance, development support, health, as well as education, training, human resources development, media, and justice.

Other areas of interest entailed culture and tourism, security and defense, science, technology and innovation, among others.

The Kingdom is a significant market for Vietnam and a vital partner in the Middle East and Africa.

The region’s exports to the Asian country during 2022 included plastic products, mineral products, and organic chemicals. They also entailed animal food and fish meat preparations.  

Meanwhile, Saudi Arabia’s imports from Vietnam included electrical appliances, equipment and their parts, and metal products. They also included copper and its products, shoes, machinery and tools.    

The Saudi-Vietnamese Joint Committee was established in 2006 to promote cooperation across various sectors for mutual development.


Central Bank of UAE’s assets rise 1.3% to $1.08tn

Central Bank of UAE’s assets rise 1.3% to $1.08tn
Updated 07 December 2023
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Central Bank of UAE’s assets rise 1.3% to $1.08tn

Central Bank of UAE’s assets rise 1.3% to $1.08tn

RIYADH: Total assets held by the Central Bank of UAE rose to $3.95 trillion dirhams ($1.08 trillion) by the end of September 2023, representing a 1.3 percent increase compared to the previous month.

According to CBUAE’s statistical monthly bulletin, this growth in assets was complemented by a 1.4 percent rise in the volume of bank credit, which went from 1.95 trillion dirhams at the end of August to 1.98 trillion dirhams at the end of September.

CBUAE revealed that the surge in bank credit in September was driven by a significant 7.3 percent surge in foreign credit and a modest 0.7 percent increase in domestic credit.

According to the central bank, the domestic credit increase was attributed to a 3.3 percent increase in the public sector, 3.8 percent in non-financial institutions, and a 0.2 percent increase in the private sector.

The report added that banking deposits hit 2.42 trillion by the end of September, representing a rise of 0.7 percent compared to August.

“The growth in total bank deposits was due to an increase in resident deposits by 1.8 percent, overshadowing the reduction in non-resident by 10.1 percent,” said CBUAE in the report.  

Additionally, CBUAE said the monetary base expanded by 0.4 percent from 595.1 billion dirhams in August to 597.3 billion dirhams by the end of September. The expansion included a 0.5 percent increase in issued currency and a significant 13.1 percent rise in the reserve account.

CBUAE added that the overall money supply indicators also witnessed growth in September. M1, which signifies the most liquid form of money, observed a rise of 2.2 percent to 795.5 billion dirhams in September compared to August, while M2, which includes M1 and also less liquid short-term time deposits, grew by 2.6 percent to 1.90 trillion dirhams during the same period.

M3, which comprises M2 and includes less liquid assets and large time deposits, grew by 1.6 percent month-on-month to 2.35 trillion in September.

Earlier this month, CBUAE and Bank Indonesia signed a memorandum of understanding aimed at expanding cooperation across various sectors.

The MoU entails the extension of the already established framework of cooperation between both central banks, which seeks to strengthen their relationship, enhance information exchange, and collaborate across various areas.