Closing Bell: Saudi main index slips to close at 12,372
Parallel market Nomu gained 121.76 points, or 0.39%, to close at 31,737
MSCI Tadawul Index lost 1.11 points, or 0.07%, to close at 1,537.16
Updated 1 min 45 sec ago
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 12.93 points, or 0.10 percent, to close at 12,372.07.
The total trading turnover of the benchmark index was SR4.1 billion ($1.09 billion), as 85 of the stocks advanced and 137 retreated.
However, the Kingdom’s parallel market, Nomu, gained 121.76 points, or 0.39 percent, to close at 31,737, as 44 stocks advanced while 40 declined.
The MSCI Tadawul Index lost 1.11 points, or 0.07 percent, to close at 1,537.16.
The best-performing stock of the day was AYYAN Investment Co., whose share price surged 4.67 percent to SR17.48.
Other top performers included Tanmiah Food Co., which climbed 4.27 percent to SR132, and Ash-Sharqiyah Development Co., which surged 4.16 percent to SR22.52.
Saudi Reinsurance Co. declined 3.28 percent to SR56.00, while Savola Group slipped 2.84 percent to SR37.65.
On the announcements front, Dr. Sulaiman Al-Habib Medical Services Group reported its annual financial results for the period ending Dec. 31. According to a Tadawul statement, the company posted a net profit of SR2.3 billion in 2024, marking a 13.16 percent increase from 2023. The growth was driven by higher revenue, attributed to a surge in patient numbers and increased inpatient occupancy.
The firm also announced its board of directors’ recommendation to distribute SR430.5 million in cash dividends to shareholders for the fourth quarter of the 2024 fiscal year.
A bourse filing showed that 350 million shares are eligible for dividends, with a payout of SR1.23 per share. The statement further noted that the dividend-to-par value ratio stood at 12.3 percent.
Dr. Sulaiman Al-Habib Medical Services Group closed at SR300, down 0.87 percent.
Umm Al-Qura for Development and Construction Co. announced the start of the institutional book-building period for its initial public offering, which comprises 130.7 million new ordinary shares for public subscription, representing 9.09 percent of the company’s shares post-capital increase.
A Tadawul statement revealed that the price range for the offering has been set between SR14 and SR15 per share. The minimum subscription for participating parties is 100,000 ordinary shares, while the maximum allocation is 71.9 million shares.
Meanwhile, Tanmiah Food Co. reported its annual financial results for the period ending Dec. 31. A bourse filing showed the company recorded a net profit of SR95.8 million in 2024, marking a 26.2 percent increase from the previous year. The rise in profit was primarily driven by operational efficiencies and cost optimization.
Gulf economies more resilient amid high energy prices: QCB governor
Updated 8 sec ago
Reem Walid
RIYADH: High energy prices have strengthened the economies of Gulf Cooperation Council countries, making them less vulnerable compared to other regions, according to the governor of the Qatar Central Bank.
Speaking at a panel discussion titled “Resilience of the Financial System in Emerging Markets” on the first day of the AlUla Conference for Emerging Market Economies, Bandar bin Mohammed bin Saoud Al-Thani attributed this resilience to sovereign wealth funds, disciplined fiscal policies, and ongoing economic diversification efforts.
The remarks align with projections that the region’s gross domestic product growth will nearly double to 3.6 percent in 2025, compared to a global forecast of 2.8 percent, according to Oxford Economics. Credit ratings agency S&P Global also expects GCC banks to maintain strong asset quality, profitability, and liquidity through 2025.
“In our region, which is the Middle East and North Africa, I look at it in two parts. The first part is GCC countries. GCC countries are less vulnerable, and they’re more resilient because of several factors,” Al-Thani said.
He noted that strong oil and gas revenues have allowed Gulf nations to build financial buffers over the past few decades, supporting their economies in times of uncertainty. “The third is the fiscal disciplines. Most of the GCC countries have a disciplined fiscal policy. Fourth, in my point of view, is that most of the GCC countries came up with a plan of diversifying their economies and they started to execute this plan,” he said.
Al-Thani also provided a global comparison, noting that while the US economy remains strong, with robust job markets and contained — but still elevated — inflation, other regions face different challenges.
The panel also explored financial sector trends in the Arab region, with Fahad Al-Turki, director general chairman at the Arab Monetary Fund, highlighting the dominance of banks.
“The financial sector within the Arab region is dominated by the banking sector — around 93 percent of the financial sector is banking, which represents around 145 percent of the GDP from the region; this compares to 220 percent in advanced economies,” Al-Turki said.
He noted that in the GCC, the banking sector’s contribution reaches about 240 percent of GDP. “There are three countries that account for almost two-thirds of the banking sector in the whole Arab region, and these countries are Saudi Arabia, the UAE, and Qatar,” he said.
The governor of the Central Bank of Azerbaijan, Taleh Kazimov, addressed the broader economic implications of geopolitical tensions, citing inflation, changes in international settlements, and regulatory shifts as key concerns.
Meanwhile, Andriy Pyshnyi, governor of the National Bank of Ukraine, underscored the distinct challenges facing his country’s financial system.
“Their activity and operations of the National Bank of Ukraine are defined by the war. The country that has been resisting a full-scale invasion for three years and therefore all processes that in one way or another define the logic of our actions, our policies, decisions, position are determined with the aim to ensure macro financial stability in the conditions of the full-scale war,” Pyshnyi said.
The AlUla Conference for Emerging Market Economies, organized by the International Monetary Fund and Saudi Arabia, aims to tackle global economic challenges. The two-day event brings together finance ministers, central bank governors, policymakers, and leaders from the public and private sectors, alongside international institutions and academic experts.
Iran ready to strengthen economic ties with Saudi Arabia, says minister
Updated 16 February 2025
Nadin Hassan
RIYADH: Iran is prepared to enhance its economic and investment ties with Saudi Arabia, including the potential for joint projects. However, progress is contingent upon mutual willingness, according to a senior Iranian official.
In an interview with Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Abdolnaser Hemmati, Iran’s minister of economic affairs and finance, emphasized that specific agreements would be necessary to facilitate trade between the two nations.
“We are ready to boost our economic relation and investment relation between two countries and joint investment projects between two countries. But this depends on them, and I think the situation of the region is going to that era. We must start to have good relations with all together,” Hemmati said.
He added: “For starting and upgrading trade between two countries, we need to have some agreements. The main agreements is about eliminating double tax, bilateral investment, and also custom rules.”
Hemmati also emphasized Iran’s commitment to strengthening ties with neighboring countries, particularly Saudi Arabia, Qatar, and Oman.
The aim is to bolster both political and economic relations, with a strong focus on enhancing trade and commerce.
He added: “The first important matter is that growing political relations needs to upgrade our economic relations especially in the field of commerce and trade between two countries.”
Hemmati stressed the importance of fostering economic relations among countries in the region to safeguard against external interference. He highlighted that strong economic cooperation is essential for maintaining regional autonomy and stability.
At the conference, a key topic of discussion was the challenges and opportunities facing regional nations, with a particular emphasis on building economic resilience.
Hemmati reiterated that robust economic ties between neighboring countries are vital in order to prevent outside influence in their affairs.
Economic resilience, according to the minister, depends on strengthening cooperation among neighboring countries.
“The future of the region needs to have good economic relations between the member countries of the region,” Hemmati concluded.
Therefore, the future of the region depends on fostering strong economic ties between member countries to ensure long-term stability, security, and prosperity.
China’s central bank governor highlights key challenges for emerging markets at AlUla conference
Pan Gongsheng emphasized need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience
He said increasing geopolitical conflicts and protectionism disrupt international value chains and restrict flow of capital, technology, and labor
Updated 16 February 2025
NOUR EL-SHAERI
RIYADH: Emerging market economies are facing escalating challenges, including geopolitical tensions, sluggish global growth, financial volatility, and increasing public debt, according to the governor of the People’s Bank of China.
Speaking at the two-day AlUla Conference for Emerging Market Economies, organized by the Saudi Ministry of Finance and the International Monetary Fund, Pan Gongsheng emphasized the need for proactive policy measures and strengthened multilateral cooperation to enhance economic resilience.
“In my view, emerging markets face four key challenges,” Gongsheng said. “The first challenge is geopolitical tension.” He highlighted how increasing geopolitical conflicts and protectionism disrupt international value chains and restrict the flow of capital, technology, and labor.
“There has been a drop in global growth and productivity gains and the rising divergences in key industries across countries, mainly due to uneven development and resource misallocation,” he said.
Pan Gongsheng, the governor of the People’s Bank of China, speaks during the AlUla Conference for Emerging Market Economies. AN Photo
Gongsheng’s remarks align with the IMF’s recent report, which warns that friendshoring — the practice of countries trading primarily with geopolitical allies — could reduce global economic output by up to 1.8 percent.
Emerging markets, particularly in Asia, may experience up to 6 percent declines due to this shift.
Despite these warnings, a Financial Times report said China has intensified its control over technology and resources, including restricting key battery technology exports, disrupting global value chains, and escalating geopolitical tensions.
Gongsheng identified the second challenge as the slower medium-term growth of the international economy.
“We are now facing policy uncertainties in some economies. If protectionism escalates, rising trade fluctuations will drive up inflation expectations and undermine medium-term growth,” he added.
Pan Gongsheng, the governor of the People’s Bank of China, warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility. AN Photo
Citing IMF forecasts, he said global economic growth is projected to hover at just 3 percent in the medium term, the lowest level since 2000.
Financial market volatility and capital outflows represent the third major challenge.
“The trajectory of the interest rate in major advanced economies remains highly uncertain,” Gongsheng said.
“Markets have become particularly sensitive to unexpected economic data. If rates differ and rise significantly from market expectations, market repricing may increase asset price volatility in emerging markets.”
This aligns with a recent Reuters report, which said emerging markets are facing significant challenges due to a strong US dollar and high treasury yields.
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
These factors have led to weaker local currencies, increased costs for servicing dollar-denominated debt, reduced capital inflows, and dampened economic growth.
Policymakers in these regions find it difficult to counteract these pressures effectively, which are further heightened by new US tariff and trade policies.
The fourth issue Gongsheng discussed was the burden of high public debt and its implications for financial stability.
“The IMF points out that global public debt risk has risen significantly due to political and other factors. Those risks not only exist in developing countries — the level of public debt in some advanced economies also merits close attention,” he said.
He warned that growing investor concerns over fiscal sustainability could trigger government bond market volatility, with potential spillover effects on other asset classes, liquidity risks, and financial stability.
According to a report by the Institute of International Finance, the global debt stock increased by over $12 trillion in the first three quarters of last year, reaching nearly $323 trillion.
Pan Gongsheng, the governor of the People’s Bank of China, stressed the importance of multilateralism and global financial governance reform. AN Photo
The IIF attributes the rise to declining borrowing costs and a heightened risk appetite among investors, underscoring concerns similar to those expressed by the governor.
To address these challenges, Gongsheng outlined key policy responses for emerging markets.
“First, we should continue improving monetary policy frameworks, enhancing the efficiency of monetary policy transmission, increasing policy transparency, and improving policy communication,” he said.
He also advocated for increased exchange rate flexibility, stronger public debt management, improved macroprudential regulations, and the development of local currency markets to mitigate capital flow risks.
Gongsheng stressed the importance of multilateralism and global financial governance reform.
“The IMF has made great progress in surveillance and governance reform. At the same time, there is still more work to be done for us to advance global financial governance reform,” he said.
He called on the IMF to enhance support for developing countries, promote trade and investment liberalization, and establish comprehensive policy tools to help emerging markets address capital flow risks and external shocks.
“The current quota shares can no longer reflect the actual position of emerging markets in the global economy,” Gongsheng said, urging the IMF to establish a “concrete and binding timetable” for future quota realignments, with discussions on fiscal realignment plans set by June.
Ministers urge fiscal discipline, smart investment to tackle debt challenges at Saudi forum
Discussion underscored need to maintain fiscal discipline while ensuring targeted investments that drive sustainable economic growth
Panelists agreed careful financial oversight, efficient resource allocation, and strategic investment remain central to overcoming debt challenges in emerging markets
Updated 12 min 11 sec ago
Miguel Hadchity
RIYADH: Effective debt restructuring requires a thorough understanding of its root causes, said the Russian finance minister at the AlUla Conference for Emerging Market Economies.
Speaking during a panel titled “High Debt-Low Fiscal Space—Fiscal Consolidation and Multilateral Solutions to Debt Restructuring,” Anton Siluanov said that fiscal prudence and policy monitoring are essential in addressing economic challenges.
“When we restructure the debt, we must be fully cognizant of the underlying causes,” Siluanov said, stressing the importance of careful analysis before implementing financial adjustments.
He further underscored the responsibility of finance ministries to adopt prudent fiscal policies, ensuring that governments do not exacerbate their debt situations. “If it’s difficult to cut costs, don’t blow them, don’t increase them,” he warned.
H.E. the #Saudi Minister of Finance, Mr. Mohammed Aljadaan @MAAljadaan highlights that it is essential for nations to enlarge their economy by dismantling the silos within the government and making sure they have a very clear vision to achieve progress.#AlUlaCEME2025pic.twitter.com/0xwIOcZJsd
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
The panelists highlighted the need for efficient and targeted financial measures. Mauricio Cardenas, a professor at Columbia University and former Colombian finance minister, argued against indiscriminate budget cuts, saying: “I don’t believe in across-the-board cuts in government expenditures because governments have priorities, countries also have priorities.”
Instead, he called for channeling financial resources more effectively to stimulate economic growth and stability. “In essence, channeling more financing, making sure that financing is more efficient is crucial.”
Saudi Finance Minister Mohammed Al-Jadaan reinforced the importance of strategic financial planning, urging countries to “utilize your fiscal space in the most optimal way.”
His remarks were particularly relevant in the context of Saudi Arabia’s economic positioning, as the Kingdom continues to lead major financial initiatives in the region.
Professor of Columbia University and Former Colombian Minister of Finance Dr. Mauricio Cárdenas @MauricioCard، emphasizes that countries should carefully prioritize their policies to drive economic growth. #AlUlaCEME2025pic.twitter.com/WhlpKeiGkb
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
Zambian Finance Minister Situmbeko Musokotwane pointed to investment opportunities in resource-rich nations, particularly critical minerals necessary for global decarbonization efforts.
“Countries like Saudi Arabia, with a lot of financial capital, the good news is that with the efforts to decarbonize the materials—copper, manganese, nickel, and so forth—they’re in my country, so come and invest,” he said.
The discussion underscored the necessity of maintaining fiscal discipline while ensuring targeted investments that drive sustainable economic growth.
H.E. the #Saudi Minister of Finance, Mr. Mohammed Aljadaan @MAAljadaan emphasizes that we can achieve more and accelerate progress by establishing a more structured approach for the Common Framework for debt relief, restructuring, and reforms. #AlUlaCEME2025pic.twitter.com/O9YaW2i4cC
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
The panelists agreed that careful financial oversight, efficient resource allocation, and strategic investment remain central to overcoming debt challenges in emerging markets.
The two-day summit, held in the Arabian oasis of AlUla, aims to generate actionable recommendations to strengthen financial stability and promote sustainable growth in emerging economies.
Key discussions will focus on the role of artificial intelligence and digital transformation in driving economic progress. Participants will explore strategies for enhancing economic resilience and fostering stronger cooperation between emerging and advanced economies to promote a more equitable and sustainable future.
Financial discipline crucial while pursuing economic diversification efforts: Qatari minister
Qatar’s minister of finance said Middle East countries have engaged in healthy competition as they pursue economic diversification
He was speaking during a panel discussion at the AlUla Conference for Emerging Market Economies
Updated 16 February 2025
Nirmal Narayanan
RIYADH: Maintaining financial discipline is crucial for countries in the Middle East as they work to diversify their economies and reduce reliance on energy revenues, according to a Qatari minister.
During a panel discussion at the AlUla Conference for Emerging Market Economies organized by the Saudi Ministry of Finance and the International Monetary Fund, Ali bin Ahmed Al-Kuwari, Qatar’s minister of finance, said that countries in the Middle East have engaged in healthy competition as they pursue their economic diversification journeys.
Saudi Arabia’s Vision 2030, Qatar’s Vision 2030, and the UAE’s Vision 2031 programs are focused on transitioning from a hydrocarbon-based economy to a knowledge-driven one.
The President and Chair of the Asian Infrastructure Investment Bank (@AIIB_Official) highlights the IMF and World Bank's reforms as key steps toward more adaptive and responsive financial support. #AlUlaCEME2025pic.twitter.com/fAJGhps8oj
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
These initiatives also aim to strengthen non-energy sectors, which include tourism, hospitality, manufacturing, and technology.
“While we build the diversification, it is very important to have a long-term view of how we see things change in terms of revenue and expenditure. The fiscal policy framework in Qatar builds different scenarios for revenue. We build discipline around the spending so the spending goes to the right places. We make sure that surpluses go in the right direction,” said Al-Kuwari.
He added: “Surplus goes to the Qatar Investment Authority because it is Qatar’s revenue diversification engine. A part of the surplus also goes to the shock absorption buffer by enhancing the Qatar Central Bank reserves. Part of it is also reinvested in the economy itself to achieve diversification.”
A panel discussion was held during the AlUla Conference for Emerging Market Economies on ‘Emerging Markets: Policy Challenges Amid Structural Shifts in the World Economy.’ AN Photo
According to the minister, countries including the Kingdom, the UAE, Bahrain, Kuwait, and Oman are all diversifying their economies effectively.
“Saudi, UAE, Bahrain, Kuwait, Oman everyone is working together. It is a healthy competition. We are also complementing each other,” the minister said.
He also said that Qatar’s economic diversification is based on four sectors, including technology, low-carbon manufacturing, logistics, and tourism, adding that the nation has already started seeing the results.
“In tourism, during the World Cup in 2022, we received 2.3 million visitors. In 2023, the year after the World Cup, visitors increased to 4 million, and in 2024, we welcomed 4 million,” said Al-Kuwari. The Qatari minister also said his country seeks to increase the production of liquefied natural gas by 80 percent in a phased manner by 2030, and it will help ensure a sufficient energy supply in the world.
The Dean of the School of Economics and Business at the University of Chile, Prof. José De Gregorio sheds light on the successful policy responses from emerging markets during the last two global economic crises.#AlUlaCEME2025pic.twitter.com/Nh1N1W7nkQ
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
During the event, which was held in the historic city of AlUla and runs from Feb. 16— 17, Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, said the entity is closely cooperating with other multilateral development banks to assist the funding needs in emerging economies.
“We do not work alone, as a new institution, we work with our peer institutions, and other members of the MBD family. We develop our policy lending to support the countries’ efforts toward net zero,” said Liqun.
He added: “We provide local currency financing. We can help countries to avoid currency risks, and also we believe that it is important to introduce climate-resilient debt crisis financing. This provides temporary relief after climate disasters. We have a soft fund window to help reduce the costs of infrastructure investments.”
Jin Liqun, president and chairman of the Asian Infrastructure Investment Bank, speaks during the panel discussion. AN Photo
Liqun further said that the Asian Infrastructure Investment Bank is assisting emerging economies in positioning themselves within the global green economy and accessing its value chains.
“The green transition is a major opportunity for emerging countries, especially countries in the Gulf Cooperation Council regions. This is a great opportunity for GCC countries to develop sustainable and resilient economies,” added Liqun.
The Dean of the School of Economics and Business at the University of Chile, Jose De Gregorio, said emerging markets should continue doing what they are doing now but should also effectively address the potential risks as time progresses.
— AlUla Conference for Emerging Market Economies (@AlUlaCEME) February 16, 2025
“Emerging markets should keep doing things which they are doing now. However, there are risks which we have to take into account and be prepared for. First, fiscal policies are not as strong as they were fifteen years ago. Why? Because we have spent a lot of money during the previous crisis. The second one is the geopolitical thing,” added De Gregorio.
The Governor of the Central Bank of Nigeria, Olayemi Cardoso, said countries should possess a deep knowledge of their economies before making strategic fiscal policy decisions.
“My experience has been that it is important for economies to understand their own economies and not just necessarily go in line with what everybody else is doing,” said Cardoso.
