Arab markets see growth in select exchanges amid overall regional declines in September: AMF

Arab markets see growth in select exchanges amid overall regional declines in September: AMF
The overall market resilience in the Arab region contrasts sharply with the struggles seen in Western markets. Shutterstock
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Updated 18 October 2024
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Arab markets see growth in select exchanges amid overall regional declines in September: AMF

Arab markets see growth in select exchanges amid overall regional declines in September: AMF

RIYADH: A smattering of Arab markets saw positive growth in September, despite an overall decline for the region, according to the latest monthly bulletin released by the Arab Monetary Fund. 

The Damascus Stock Exchange led the way with a 55.36 percent increase in trading volume, while the Muscat Stock Exchange followed closely, recording a rise of 54.67 percent. 

Abu Dhabi also demonstrated strong performance, with a 37.28 percent surge in trading value, reflecting investor optimism and sustained economic activity.

Although some exchanges faced challenges, the overall market resilience in the Arab region contrasts sharply with the struggles seen in Western markets, according to the AMF.

In its 51st edition of the report on Arab Financial Markets, the organization provided a comprehensive analysis of these trends, offering detailed insights into trading volumes and values across the region’s stock exchanges.

The report showed that Arab markets overall saw a 10.78 percent drop in trading volume and a 2.76 percent decline in trading value compared to the previous month. 

Saudi Arabia’s financial market saw a 12.42 percent decline in trading volume, with Dubai and Egypt also experiencing decreases of 7.31 percent and 4.36 percent, respectively. 

The report suggested that these fluctuations were influenced by a mix of regional market sentiment, sector-specific performance, and global economic concerns.

The AMF’s bulletin provided a thorough overview of the financial landscape across the 16 Arab markets, highlighting a complex interplay of growth, stability, and decline, driven by both regional dynamics and broader international pressures.

Performance of the AMF Composite Index

One of the key highlights of the report is the performance of the AMF’s composite index, which measures the overall activity of Arab financial markets.

For September, this indicator rose by 0.58 percent, settling at 496.70 points. This represents a slight improvement from August, indicating a mild but steady recovery across Arab exchanges.

This increase corresponds to a gain of 2.87 points by the end of August.

Notably, 10 of the 14 Arab stock markets included in the index contributed positively to the overall growth, reflecting a diverse but generally favorable movement in market performance. 

However, four exchanges recorded declines, reflecting the challenges some markets faced amid ongoing economic adjustments.

Leading performers: Iraq and Damascus take the lead

In terms of individual market performance, the Iraq Stock Exchange emerged as the standout performer in September, with its index surging by 8.26 percent. 

This significant growth was followed closely by the Damascus Stock Exchange, which posted a 6.57 percent increase. 

These strong gains highlight a continued upward trajectory in certain segments of the Arab financial markets, driven by positive market sentiment and regional economic developments.

Other Arab bourses also showed positive momentum, though to a lesser degree. Dubai’s Financial Market climbed by 4.12 percent, and Qatar’s Exchange rose 4.03 percent, both marking solid gains.

These performances were supported by the continued growth of sectors such as real estate, finance, and consumer goods. 

The Saudi financial market, although not as dynamic as some of its peers, still recorded a 0.67 percent rise, indicating stability as the exchange continues to adjust to broader regional and global changes.

Markets in decline: Palestine and Kuwait struggle




 Kuwait Stock Exchange building in central Kuwait City. Shutterstock

While the report detailed significant gains in several markets, it also noted that not all Arab exchanges experienced growth. 

The Palestine Exchange posted the largest decline, with its index dropping by 2.96 percent, followed by the Muscat and Kuwait markets, which fell by 0.76 percent and 0.62 percent, respectively.

These drops were influenced by specific internal market dynamics and reflect the challenges these markets faced during the month of September. 

The decline in the Palestinian market can be partially attributed to political uncertainties and regional volatility that dampened investor confidence. 

Similarly, economic adjustments and sectoral rebalancing weighed heavily on the Muscat and Kuwait markets, causing them to post negative returns for the month.

A global comparison: Arab markets vs. world indices

The report noted that the MSCI Emerging Markets Index for Asia posted a 7.80 percent rise, demonstrating resilience in the face of global economic challenges. 

Latin American markets experienced a slight decline of 0.06 percent during the same period. 

In contrast, European and American indices such as the FTSE and Nikkei saw declines of 1.67 percent and 1.88 percent, respectively.

This comparison highlights the relatively positive performance of Arab markets, particularly when viewed in the context of global financial trends. 

This is particularly evident when considering that many Arab stock markets — particularly Iraq, Damascus, and Dubai — posted significant gains, even as global markets grappled with inflationary pressures and geopolitical instability.

Central bank policies: Interest rate cuts and market impacts




US Fed Chair Jerome Powell. File/AFP

One of the key developments during September was the decision by the US Federal Reserve to reduce its interest rate range to 4.75 percent - 5 percent, marking the first cut in four years.

This decision followed eight consecutive rate hikes and was driven by the Federal Reserve’s assessment of easing inflationary pressures and the need to boost liquidity in the economy.

In response to the Fed’s decision, several Arab central banks followed suit to maintain economic stability and investor confidence, and also because many currencies in the region are pegged to the US dollar.

Saudi Arabia’s central bank reduced its repo rate by 50 basis points, while Bahrain, the UAE, and Kuwait made similar cuts.

Oil and gold: Geopolitical influence and market reactions

Oil prices fell during September, with Brent crude and West Texas Intermediate seeing declines of 7.3 percent and 5.9 percent, respectively. 

The report attributes this drop to growing concerns about increased oil supply in global markets, coupled with weaker demand, especially from China, a key player in imports of the commodity.

The AMF pointed to OPEC’s decision to extend its voluntary production cuts for two more months, aiming to stabilize the market amid these fluctuations. 

Despite the short-term drop in prices, OPEC+ reaffirmed its commitment to gradually lifting these cuts after November, with the possibility of adjustments based on global market conditions.

Meanwhile, gold prices surged by 5.2 percent in September, as investors sought safe-haven assets amid ongoing global economic uncertainty. By the end of the month, the price of gold reached $2,637.60 per ounce, reflecting the continued demand for stable, risk-averse investments.

Market capitalization: A snapshot of growth and decline

On a regional level, total market capitalization increased by 0.53 percent compared to August. 

Beirut’s stock exchange led the charge, with its market capitalization growing by 10.97 percent, followed by Damascus, which saw a 6.31 percent increase.

However, the Saudi financial market, despite its overall stability in terms of index performance, experienced a slight decline in market capitalization by 1.26 percent, reflecting ongoing adjustments in its economic and financial sectors. 

Similarly, Palestine and Oman saw market capitalization decreases of 2.41 percent and 2.08 percent, respectively.


Saudi virtual hospital at forefront of AI integration, minister says

Saudi virtual hospital at forefront of AI integration, minister says
Updated 7 sec ago
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Saudi virtual hospital at forefront of AI integration, minister says

Saudi virtual hospital at forefront of AI integration, minister says

RIYADH: Saudi Arabia’s Seha Virtual Hospital, recognized by the Guinness World Records as the world’s largest online medical initiative, is leading the way in transforming healthcare accessibility and efficiency through digital innovation.

The facility, linked to over 200 hospitals across the Kingdom, is reshaping patient care by eliminating geographical limitations and integrating advanced artificial intelligence solutions.

Speaking with Arab News on the sidelines of the LEAP 2025 tech conference in Riyadh, Abdullah Al-Issa, Saudi Arabia’s deputy minister for e-health and digital transformation, highlighted the government’s commitment to leveraging technology to enhance health care services. 

“Digital is no longer a luxury; it is a necessity. The ministry has prioritized digitization to deliver high-quality services to beneficiaries, creating a deputyship responsible for strategy, enterprise architecture, and implementation of digital solutions,” Al-Issa stated.

Bridging gaps with Seha Virtual Hospital

The Kingdom’s e-hospital is transforming patient care by providing nationwide access to advanced consultations.

“For rare specialties, patients no longer need to travel long distances to see a doctor. With Seha Virtual Hospital, consultations can happen remotely, ensuring timely diagnosis and treatment,” Al-Issa explained.

The establishment also powers initiatives like the Tele-ICU, which enables specialized consultants to assess critical patients remotely.

“Previously, patients requiring niche expertise had to be transferred via emergency air transport. Now, they can be treated in their hometown hospitals, reducing logistical burdens and improving outcomes,” he added.

AI-driven health care revolution

Saudi Arabia’s Ministry of Health has been at the forefront of artificial intelligence integration, using technology to enhance diagnostics and preventive care. “For two years, we have utilized AI in Seha Virtual Hospital, including AI-driven x-ray solutions that detect breast cancer and other conditions, assisting consultants by flagging abnormalities before they even examine scans,” said Al-Issa.

AI also plays a pivotal role in large-scale preventive health care. “We have screened over 30 million people for non-communicable diseases like diabetes and hypertension, categorizing them into high-, medium-, and low-risk groups. Those at high risk receive further assessment and early intervention, aligning with Saudi Vision 2030’s goal of increasing life expectancy to 80 years,” he noted.

Partnerships and cybersecurity in digital health

Collaboration with the private sector remains a cornerstone of Saudi Arabia’s health care strategy. “We welcome partnerships with innovators and technology firms to enhance services. Working alone isn’t enough— we must collaborate to maximize technology’s benefits for patients, doctors, and the entire ecosystem,” Al-Issa emphasized.

With the rapid digitalization of health care, cybersecurity has become a top priority. “We are fully aligned with the National Cybersecurity Authority’s recommendations to safeguard patient data and prevent misuse of technology,” he added.
 
Nafees: the unified medical record system

The Ministry of Health is also advancing health care integration through Nafees, a unified medical record system that consolidates patient health data across providers.

“Patients can now access their medical history through the Sehhaty app, while health care providers can view past diagnoses and test results, eliminating redundant procedures and enhancing efficiency,” Al-Issa said.

“We are midway through this project, with many providers already connected and more to follow in the coming years,” he added.


Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn
Updated 21 min 30 sec ago
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Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

Oxagon to host one of the world’s largest AI data centers as DataVolt invests $5bn

RIYADH: Saudi Arabia is set to host one of the world’s largest artificial intelligence data centers following a $5 billion investment by DataVolt in Oxagon, the industrial city within NEOM.

The facility, with a capacity of 1.5 gigawatts, will be built in Oxagon’s industrial quarter and powered entirely by renewable energy.

Speaking to Arab News at the LEAP 2025 tech conference in Riyadh, Oxagon Executive Director Howard Wu highlighted the significance of the project’s architectural design and AI workload management.

“This marks a very important step because you really have a data center — in the case of our partnership with DataVolt — that is building the entire facility from the ground up. So, it’s really an end-to-end infrastructure, built from the energy grid to the building, to the AI servers, to the file system, operating system, runtime, and application,” he said.

Wu emphasized that the data center will be groundbreaking in both scale and sustainability.

When completed, he said it will be one of the world’s largest at 1.5GW and will run entirely on renewable energy.

The first phase, a 300-megawatt facility, is set to be operational by 2028. Due to the energy-intensive nature of computing and cooling systems, Wu explained that data centers are typically measured by power capacity.

“On a site-wide level, we would say it’s a 300 MW site. You have huge amounts of power to run them, and because of the density of the chips, they generate a huge amount of heat. Then you have to cool them to bring the temperature down,” he said. 

As demand for AI-driven data processing and cloud computing continues to surge — fueled by platforms like TikTok and Instagram — Oxagon’s AI data center is expected to play a pivotal role in the region’s digital transformation.

“As this demand continues to grow, we certainly see a strong growth market within the region, but also globally,” the executive said.

He added that while computing power continues to advance in line with Moore’s Law, technological innovations allow for upgrades without a proportional rise in energy consumption, making power capacity the key metric for measuring data centers.

The decision to partner with DataVolt was driven by the company’s financial commitment, technological expertise, and innovative approach to data center architecture.

Wu highlighted the key qualities that made DataVolt an ideal partner, stating that the company brought significant capital investment and a strong vision. “The third part is their innovative thinking, along with all the architecture and engineering,” he said. He added that combining these qualities made it extremely difficult to find a partner that met all three major criteria.

Once completed, the AI data center will enhance Oxagon’s growing technology ecosystem, benefiting its tenants and partners while reinforcing Saudi Arabia’s position as a global leader in digital infrastructure.


Deloitte strengthens presence in Saudi Arabia, launches AI services

Deloitte strengthens presence in Saudi Arabia, launches AI services
Updated 10 February 2025
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Deloitte strengthens presence in Saudi Arabia, launches AI services

Deloitte strengthens presence in Saudi Arabia, launches AI services

RIYADH: UK-based professional services firm Deloitte is scaling up its investment in Saudi Arabia, reinforcing its long-standing national presence with new initiatives.

In an interview with Arab News on the sidelines of the LEAP 2025 Tech Conference in Riyadh, Patrycja Oselkowska, growth leader at Deloitte Middle East, highlighted the firm’s goal to double its growth in the Kingdom over the next three years. Revenue expansion and strategic partnerships with key clients will primarily drive this development.

“Our future is firmly in Saudi now,” Oselkowska said, adding: “Our presence in the Kingdom dates over 100 years, and we see our future in the Kingdom. We’ve recently launched our new headquarters in the King Abdullah Financial District, and we are very proud of it.”

Rather than pursuing broad-based market expansion, the firm aims to serve as a trusted adviser on its clients’ most complex challenges. “The way we differentiate in the market is by providing very in-depth industry expertise,” Oselkowska said.

Deloitte is serving as the official Innovation & Emerging Technology Partner at LEAP 2025 for the third consecutive year. The firm’s presence at the event includes interactive booths featuring discussions on generative artificial intelligence, sustainability, and cybersecurity, as well as cloud alliances and digital transformation.

Digital transformation remains the prevailing trend in the Middle East’s business landscape. According to Oselkowska, companies across sectors are accelerating their digitization efforts, with GenAI emerging as a game-changer. 

Deloitte recently published its “State of AI” report, which surveyed 150 C-suite executives from corporations across the Middle East. The findings indicated that over 80 percent of organizations feel the pressure to adopt AI, but nearly half struggle with a shortage of talent and technological capabilities necessary for successful scaling. 

She added: “Many corporates are worried that gen AI is going to completely revolutionize how they do business.”

The top official emphasized that Deloitte is proactively embracing this shift, positioning itself to disrupt its own business model before being challenged by others.

“We launched a new GenAI tool that is called Tax Genie, where we are basically trying to implement GenAI to provide services in the tax space. It is both for our people as well as for our clients.”

Oselkowska also addressed the future of digital banking in the Kingdom, distinguishing between traditional banks that offer digital services and fully digital banks that operate exclusively through mobile applications. 

While the Kingdom has yet to introduce fully digital banks, the regulatory framework is evolving, with the Saudi Central Bank overseeing licensing processes for potential entrants.

For this medium to thrive, it needs to offer a seamless customer experience and a compelling value proposition that incentivizes clients to switch from traditional banks, she said.

Cybersecurity remains a critical challenge, as digital banking platforms must ensure robust security measures to maintain high consumer confidence levels.

Deloitte’s recent research on Trust ID highlighted that credibility in financial services is exceptionally high among Gen Z consumers in Saudi Arabia. “Digital banks need to maintain that really high level of trust by being extremely secure,” Oselkowska added.

In an announcement at LEAP 2025, Deloitte introduced its Silicon-2-Service offering, an initiative designed to accelerate AI adoption across the Middle East. 

According to a press release, the S2S framework provides end-to-end support for businesses seeking to implement sovereign AI capabilities, covering strategy, design, deployment, and optimization.

Deloitte Middle East AI and Data Leader Yousef Barkawie said: “AI is transforming business landscapes globally and presenting our Middle East region with unprecedented opportunities to innovate and scale.”

He added: “With the rollout of our Silicon-2-Service offering in the region, we are enabling adoption and providing access to cutting-edge innovation at a large scale. We support clients across the public and private sectors through their entire AI journey.”

The press release said: “This collaboration enables Deloitte’s clients to accomplish faster time to value of their large-scale AI investments while embracing the freedom to innovate and adapt to evolving market demands.”

“The launch of S2S aligns with Deloitte’s broader commitment to supporting the Middle East’s digital economy by fostering an ecosystem where AI bridges innovation with tangible, positive outcomes, in compliance with the prevailing regulations unique to each country,” it added.


Qatar, Bahrain sign $1.27bn steel deal 

Qatar, Bahrain sign $1.27bn steel deal 
Updated 10 February 2025
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Qatar, Bahrain sign $1.27bn steel deal 

Qatar, Bahrain sign $1.27bn steel deal 

JEDDAH: Qatar Steel and Bahrain Steel have signed a $1.27 billion agreement to supply 5 million tonnes of the product over five years, aiming to enhance industrial cooperation and strengthen the sector in the region. 

Qatar’s Ministry of Commerce and Industry announced the agreement on Feb. 9, saying that the deal falls within the framework of the Industrial Partnership for Sustainable Economic Development, which promotes private-sector collaboration across member states.

The initiative supports a range of industries, including agriculture, food, and fertilizers. It also extends to pharmaceuticals, textiles, and chemicals. Additionally, the program benefits sectors such as plastics, manufacturing, and minerals. 

The Gulf’s steel industry has experienced significant expansion, driven by major investments in infrastructure and industrial projects.

The ministry highlighted that this strategic partnership would provide Qatar Steel with a stable supply of essential raw materials, enhancing production efficiency and supporting sustainable economic growth. 

The agreement is expected to create new investment opportunities, enhance industrial competitiveness in both Qatar and Bahrain, and strengthen local supply chains. 

By reducing reliance on imported raw materials, the deal aims to boost economic resilience and market stability across the region. 

Bahrain Steel, an iron ore pelletizing company located in the heart of the Arabian Gulf, operates twin plants with a combined capacity of 12 million tonnes of pellets. The company represents a $3.5 billion investment and plays a central role in the region’s steel industry, according to its website. 

Producing a range of pellets for both direct reduction and blast furnace steelmaking, Bahrain Steel sources raw materials via its own port terminal. Three-quarters of its finished products are exported. 

Established in 1974 as the Arabian Gulf’s first integrated steel plant, Qatar Steel began commercial production in 1978 and has been a wholly owned subsidiary of Industries Qatar since 2003.

Headquartered in Messaieed Industrial City, south of Doha, it also operates a UAE-based subsidiary, Qatar Steel Company FZE. 


MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 
Updated 10 February 2025
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MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

MODON, Digital Saudi, and NHC drive $14.9bn in tech deals on LEAP’s first day 

JEDDAH: Saudi Arabia saw $14.9 billion in tech investments on LEAP’s opening day, with major deals led by Saudi Authority for Industrial Cities and Technology Zones, Digital Saudi, and NHC reinforcing its Vision 2030 drive for global tech leadership. 

Being held from Feb. 9-12 in Riyadh, LEAP 2025 is a flagship event in the Kingdom as it aims to become a global and regional tech hub, aligned with Vision 2030 goals. This comes on the back of the Kingdom’s growing push for investment in research, development, and innovation, with a World Economic Forum report projecting it will add $16 billion to Saudi Arabia’s gross domestic product by 2030.  

Here is a wrap-up of some of the major deals signed on day one: 

MODON secures over $1.6bn in digital economy deals 

Saudi Authority for Industrial Cities and Technology Zones, also known as MODON, inked agreements worth more than SR6 billion ($1.6 billion) to boost the Kingdom’s digital economy and enhance technical capabilities. 

Among the key deals was a contract with Link Development Co. to upgrade the Shareek system, aimed at improving the investor experience in industrial, logistics, and investment sectors. 

The authority also signed a SR2.64 billion deal with Saudi data infrastructure firm Ezditek to establish a 64-megawatt cloud data center in Riyadh’s technical zone. DataVolt, a subsidiary of Vision Invest, secured a similar SR2.5 billion investment agreement for a data center in the same zone.  

Further agreements included a SR1.3 billion investment by Gulf Data Hub to build data centers in Dammam Second Industrial City and Jeddah Oasis, covering 163,000 sq. meters. MODON also partnered with the Ministry of Communications and Information Technology to accelerate cloud infrastructure development. The agreement ceremony was witnessed by Ibrahim Alkhorayef, minister of industry and chairman of MODON. 

Additionally, MODON signed a memorandum of understanding with Taibah Valley, an affiliate of Taibah University, to promote the adoption of emerging technologies in the industrial and technical sectors and support research, development, and innovation. 

KAFD, Huawei partner on smart city innovation 

The King Abdullah Financial District Development and Management Co. signed an MoU with Huawei to implement smart city solutions, AI-driven technologies, and 5G-A networks. The partnership aims to optimize operations and enhance the digital experience across KAFD’s 1.6 million sq. meters of development. 

Ramez Al-Fayez, chief information technology officer at KAFD DMC, said the collaboration would help build a “fully integrated urban environment that supports digital transformation.”  

Beyond infrastructure enhancements, the agreement also focuses on technology talent development, offering specialized training programs and globally recognized Huawei certifications such as HCNA, HCNP, and HCIE. 

KAFD and Huawei will additionally collaborate on digital research and analysis to explore emerging technological opportunities, support Saudi Arabia's digital transformation goals, and strengthen Huawei's regional presence. 

GACA taps SiFi for automated expense management 

The General Authority of Civil Aviation partnered with Saudi fintech firm SiFi to automate expense tracking and financial management processes, streamlining operations across the sector. 

Saudi Geospatial Authority, NHC Innovation collaborate  

The General Authority for Survey and Geospatial Information has signed an MoU with NHC Innovation to integrate geospatial data into real estate development, smart mobility, and navigation technologies. The partnership will leverage the Saudi Arabia National Spatial Reference System, or SANSRS, to enhance surveying and data-driven decision-making. 

Key initiatives include integrating the country’s digital maps with the national geospatial platform, utilizing SANSRS for precise surveying, and advancing geospatial intelligence to support data-driven strategies.  

Saudi HR minister unveils digital services initiative 

Saudi Minister of Human Resources and Social Development Ahmed Al-Rajhi launched a suite of digital services aimed at improving accessibility and efficiency. The initiatives include a Virtual Branch for online government services, a Digital Childcare Platform for verified childcare center information, and a Social Development Platform to enhance community engagement and transparency. 

The new services align with the ministry’s digital transformation strategy under Vision 2030, enhancing secure and innovative access to government services while fostering technological advancement in the Kingdom. 

These initiatives are part of the ministry’s broader digital transformation efforts, which have automated more than 1,000 services and processes, benefiting over 32 million users, according to the ministry. 

Digital Saudi showcases Kingdom’s tech advancements 

Digital Saudi, the Kingdom’s premier international platform for highlighting digital achievements, kicked off alongside LEAP 2025. 

Serving as a unified stage for Saudi Arabia’s digital transformation journey, Digital Saudi allows government entities to showcase their progress in e-government services, share success stories, and align with global best practices. It also educates the public on how to benefit from digital services. 

The platform further promotes the adoption of cutting-edge technologies, reinforcing Saudi Arabia’s position as a leading digital innovation hub in line with Vision 2030.