IsDB approves $369m for development projects in Turkiye, Turkmenistan, and Suriname 

IsDB approves $369m for development projects in Turkiye, Turkmenistan, and Suriname 
This initiative aligns with the organization’s mission to promote comprehensive human development. It focuses on priority areas such as alleviating poverty, improving health, promoting education, enhancing governance, and fostering prosperity for all. Supplied
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Updated 30 June 2024
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IsDB approves $369m for development projects in Turkiye, Turkmenistan, and Suriname 

IsDB approves $369m for development projects in Turkiye, Turkmenistan, and Suriname 

RIYADH: New development projects in Turkiye, Turkmenistan and Suriname will receive a significant boost with a $368.98 million financing package sanctioned by the Islamic Development Bank. 

The financing includes $165 million to enhance inclusive, equitable and quality education in Turkiye.

Another $156.3 million will support Turkmenistan in improving access to high-quality oncology services. Additionally, $47.68 million has been earmarked to bolster Suriname’s power transmission and distribution network, according to a statement. 

Approved by IsDB President and Group Chairman Mohammed Al-Jasser, the financing aligns with the organization’s mission to promote comprehensive human development, focusing on priority areas such as alleviating poverty, improving health, promoting education, enhancing governance and fostering prosperity. 

The projects aim to foster sustainable development and socio-economic growth across IsDB member countries. 

Al-Jasser highlighted the impact of the financing in improving transportation, health, education and energy.

The education-focused Turkiye project will see the construction and operationalization of green, resilient and sustainable schools in earthquake-affected and earthquake-prone areas. 

It includes the construction of 33 schools, adding 808 classrooms and benefiting 24,640 students per year, enhancing disaster resilience for more than 319,206 people.

Three oncology centers will be built in Turkmenistan and healthcare providers will be trained. 

The project will improve cancer treatment for 11,750 patients annually, significantly reducing cancer incidence and mortality rates. 

The construction of power transmission and distribution networks in Suriname aims to eliminate bottlenecks, boost capacity and improve system performance. 

It will connect 4,350 new households and 470 commercial units to the grid, meeting increasing national electricity demand and ensuring reliable power supply.

In March, energy and infrastructure projects in Nigeria and Malaysia received a funding boost following the approval of $225 million in IsDB financing.

The developments focused on socio-economic progress and sustainability across key sectors. 

Nigeria was provided with a $125 million financing package supporting the Abia State Integrated Infrastructure Development Project. 

The second package targeted the Pengerang Energy Complex in Malaysia with a $100 million investment under the bank’s public-private partnership program.


Education spending up in Saudi Arabia as POS transactions hit $2.9bn 

Education spending up in Saudi Arabia as POS transactions hit $2.9bn 
Updated 24 July 2024
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Education spending up in Saudi Arabia as POS transactions hit $2.9bn 

Education spending up in Saudi Arabia as POS transactions hit $2.9bn 

RIYADH: Saudi Arabia’s point-of-sale spending reached SR10.9 billion ($2.9 billion) in the week ending July 20, with the education sector recording the largest surge, according to official data.

Figures released by the Saudi Central Bank, also known as SAMA, revealed that this section of the economy saw a 10.4 percent increase over the seven-day period, with the total value of transactions hitting SR94.1 million.

The data also showed that spending in hotels increased by 0.2 percent compared to the previous seven days to reach SR270.2 million. 

This small rise came after larger increases in the sector in the previous two weeks, with a 17.9 percent surge from June 30 to July 6 and a 3.8 percent jump from July 7 to 13.

Despite growth in these sectors, POS spending in the Kingdom continued its reverse trajectory, declining by 8.8 percent after decreasing the week before by 9.8 percent. 

Spending on construction and building materials dipped by 5.2 percent over the most recent seven-day period, representing the smallest decrease of any sector compared to the previous week, to reach SR312.6 million.

The health sector witnessed the second-smallest dip, recording a 10.2 percent drop to come in at SR696.3 million.

Spending on clothing and footwear ranked joint-third in decline, along with electric devices, with both categories recording an 11.3 percent drop.

The highest value decrease was seen in the telecommunication sector, which posted a transaction total of SR89.5 million following a 13 percent drop.

Restaurant and cafe outlays dominated POS spending with SR1.67 billion, followed by SR1.64 billion on food and beverages, and SR1.41 billion on miscellaneous goods and services. Combined, these three categories account for 43.27 percent of the total POS spending value.

According to data from SAMA, 33.2 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.63 billion, representing a 7.1 percent decline from the previous week.

Spending in Jeddah followed, accounting for 14.4 percent of the total and reaching SR1.58 billion, marking a 7.7 percent weekly negative change.

Expenditures in Hail, Tabuk, and Buraidah decreased by 14 percent, 12.4 percent, and 9.7 percent, respectively, with the figures reaching SR168.2 million, SR189.3 million, and SR249.6 million.

The smallest decrease was recorded in Makkah, which saw a 3.9 percent weekly change to come in at SR441.4 million.


Oil Updates – prices hover near lowest in 6 weeks

Oil Updates – prices hover near lowest in 6 weeks
Updated 17 min ago
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Oil Updates – prices hover near lowest in 6 weeks

Oil Updates – prices hover near lowest in 6 weeks

LONDON: Oil prices traded around their lowest level in six weeks on Wednesday, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees.

Wednesday saw only a slight reprieve, as prices snapped three straight sessions of decline on falling US crude inventories and growing supply risks from wildfires in Canada boosted prices.

Brent crude futures for September rose 66 cents, or 0.8 percent, to $81.67 a barrel by 11:08 a.m. Saudi time. US West Texas Intermediate crude for September increased 65 cents, or 0.8 percent, to $77.61 per barrel.

The likely reason for the wider sell-off has been the “diminishing hopes of demand resurrection,” with “an admission from refiners that the summer leap in consumption is simply not taking place,” said Tamas Varga of oil broker PVM.

Prices had fallen to a six-week low on Tuesday, with Brent closing at its lowest level since June 9 on ceasefire talks between Israel and Hamas in a plan outlined by US President Joe Biden in May and mediated by Egypt and Qatar.

Prices also suffered due to continued concern that the economic slowdown in China, the world’s biggest crude importer, would weaken global oil demand.

WTI had lost 7 percent over the previous three sessions, while Brent shed nearly 5 percent.

US crude oil, gasoline and distillate inventories fell for the fourth straight week in the previous week, according to market sources citing the American Petroleum Institute, reflecting steady demand in the world’s largest consumer of oil.

Wildfires in Canada were also supporting prices. The fires have forced some producers to curtail production and were threatening a large amount of supply, ING analysts said.

“Market is nearing oversold territory and we still believe that the fundamentals support prices moving higher from current levels over the remainder of the third quarter on the back of a deficit environment,” ING analysts said in a note.

The API figures showed crude stocks falling by 3.9 million barrels in the week ended July 19, the market sources said, speaking on condition of anonymity. Gasoline inventories fell by 2.8 million barrels and distillates shed 1.5 million barrels.

That would be the first time crude stocks in the US fell for four weeks in a row since September 2023.

Official government data on oil inventory data is due for release on Wednesday.


Saudi Arabia issues $856m of sukuk in July

Saudi Arabia issues $856m of sukuk in July
Updated 24 July 2024
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Saudi Arabia issues $856m of sukuk in July

Saudi Arabia issues $856m of sukuk in July

RIYADH: Saudi Arabia completed its riyal-denominated sukuk issuance for July at SR3.21 billion ($855.7 million), according to the National Debt Management Center.  

The level once again remained above SR3 billion, following a June issuance level of SR4.4 billion, SR3.23 billion in May, SR7.39 billion in April, and SR4.4 billion in March. 

NDMC revealed that the Shariah-compliant debt product in July was divided into five tranches. 

The first tranche is valued at SR612 million and is set to mature in 2029, while the second amounted to SR159 million maturing in 2031. 

The third tranche’s value stood at SR961 million, maturing in 2034, and the fourth was a SR1.25 million tranche with a maturity date in 2036. 

The fifth tranche had a size of SR226 million maturing 2039. 

This is part of the Kingdom’s Sukuk Issuance Program, which started in 2017, with the aim of establishing an unlimited riyal-denominated sukuk initiative under the NDMC. 

The announcement from NDMC came as Kuwait’s financial center Markaz published its own figures for bond and sukuk issuance across the Gulf Cooperation Council region for the first half of 2024.

The analysis showed that Saudi Arabia was the leading player in the six months to the end of June, raising $37 billion through 44 issuances.

A report released by S&P Global in April said that sukuk issuance globally is expected to hover between the $160 billion to $170 billion mark in 2024, holding steady compared to the $168.4 billion seen in 2023 and $179.4 billion in 2022. 

According to the US-based firm, the issuance of this Shariah-compliant debt product began on a “strong footing” in 2024, with Saudi Arabia becoming a key contributor to the performance. 

The credit rating agency also noted that the sukuk market will continue to grow in the near term driven by financing needs in core Islamic finance countries, along with the ongoing economic transformation programs which are currently underway in nations like Saudi Arabia. 

It added: “The drop in issuance volumes in 2023, which mainly resulted from tighter liquidity conditions in Saudi Arabia’s banking system and Indonesia’s lower fiscal deficit, was somewhat compensated by an increase in foreign currency-denominated sukuk issuance.” 

In April, another report released by Fitch Ratings also echoed similar views and noted that global sukuk issuance is expected to continue growing in the coming months of this year. 

Fitch noted that economic diversification efforts and the rapid development of the debt capital market in the Gulf Cooperation Council region will propel the growth of the sukuk market in the coming months. 


Flydubai in early talks for largest ever airplane order

Flydubai in early talks for largest ever airplane order
Updated 23 July 2024
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Flydubai in early talks for largest ever airplane order

Flydubai in early talks for largest ever airplane order

FARNBOROUGH, United Kingdom: Government-owned airline flydubai is in early talks with planemakers Boeing and Airbus to place its largest-ever airplane order, CEO Chief Executive Ghaith Al-Ghaith said on Tuesday.
“The last order we did was 175 and this (next one) is going to be the biggest, I’m sure,” Al-Ghaith told Reuters in an interview at the Farnborough Air Show. Flydubai announced the purchase of 175 Boeing 737 MAX airplanes in 2017. 


Closing Bell: Saudi main market slips to close at 12,105

Closing Bell: Saudi main market slips to close at 12,105
Updated 23 July 2024
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Closing Bell: Saudi main market slips to close at 12,105

Closing Bell: Saudi main market slips to close at 12,105

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Tuesday, losing 69.22 points, or 0.57 percent, to close at 12,105.54.        

The total trading turnover of the benchmark index was SR6.8 billion ($1.8 billion) as 55 of the listed stocks advanced, while 173 retreated.    

The MSCI Tadawul Index also dropped 10.49 points, or 0.69 percent, to close at 1,512.94.    

The Kingdom’s parallel market Nomu gained 123.53 points, or 0.47 percent, to close at 26,164. This comes as 33 of the listed stocks advanced, while 32 retreated.  

Sumou Real Estate Co. was TASI’s best-performing stock as the company’s share price surged 9.98 percent to SR47.95.        

Other top performers included Kingdom Holding Co. as well as Perfect Presentation for Commercial Services Co., whose share prices soared by 9.93 percent and 4.04 percent, to stand at SR7.86 and SR15.96 respectively.        

Other top gainers included Nayifat Finance Co. and Gulf Union Alahlia Cooperative Insurance Co.      

Miahona Co. was the worst performer, wth its share price dropping by 6.82 percent to SR39.60.    

Nama Chemicals Co. and Jadwa REIT Saudi Fund saw their share prices drop by 3.39 percent and 3.22 percent to SR27.10 and SR12.02, respectively.

Other poor performers included Rasan Information Technology Co. and National Medical Care Co.

On the announcements front, First Mills Co. reported a net profit of SR45.5 million in the second quarter of the year, representing a rise of 30.3 percent compared to the same period in 2023.

Revenue also saw an annual increase of 13 percent in the second quarter of this year to reach SR242.3 million.

The company announced that it will distribute cash dividends of SR1.55 per share to shareholders for the first half of 2024.

The total dividend distribution amounts to SR86.03 million, to be allocated across 55 million shares.    

Saudi telecom Etihad Etisalat Co., also known as Mobily, reported a 33 percent increase in profits, reaching SR661 million in the second quarter of 2024, compared to SR497 million in the same period last year.  

The company attributed the rise in net profit to higher operating profits and a 26.2 percent reduction in financing expenses, which decreased to SR130 million due to a reduced debt portfolio.    

Lower zakat and income tax expenses also contributed to the improved financial performance, it added.  

Saudi Telecom Co. also reported a 9 percent increase in profits, reaching SR3.3 billion in the second quarter, compared to SR3.0 billion in the same period last year.  

The company attributed the rise in net profit to a revenue increase of SR828 million, which was partially offset by a SR272 million rise in the cost of revenues, resulting in a gross profit increase of SR556 million.    

Operating expenses decreased by SR48 million, and zakat and income tax expenses fell by SR23 million, it added.