Closing Bell: Saudi main index edges down to close at 11,694
Updated 23 March 2025
Reem Walid
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 65.55 points, or 0.56 percent, to close at 11,694.77.
The total trading turnover of the benchmark index was SR2.64 billion ($704 million), as 85 of the stocks advanced and 155 retreated.
On the other hand, the Kingdom’s parallel market, Nomu, gained 13.93 points, or 0.05 percent, to close at 30,535.46. This comes as 36 stocks advanced while 48 retreated.
The MSCI Tadawul Index lost 10.73 points, or 0.72 percent, to close at 1,479.47.
The best-performing stock was Al-Babtain Power and Telecommunication Co., whose share price surged 9.98 percent to SR46.30.
Other top performers included Alujain Corp., whose share price rose 8.65 percent to SR37.70, as well as Arriyadh Development Co., whose share price surged 6.05 percent to SR34.20.
Naseej International Trading Co. recorded the most significant drop, falling 9.58 percent to SR84.
Al-Rajhi Co. for Cooperative Insurance also saw its stock prices fall 4.63 percent to SR136.
Banan Real Estate Co. also saw its stock prices decline 4.31 percent to SR6.22.
On the announcements front, Tam Development Co. declared its annual financial results for the year ending on Dec. 31, 2024. According to a Tadawul statement, the firm reported a net profit of SR30.13 million in 2024, reflecting a 25.77 percent drop compared to 2023.
The decrease in net profit is primarily attributed to delays in government project awards and budget reviews in the first half of 2024 which affected contract pricing revenue recognition and utilization rates as well as strategic investments in talent acquisition and competitive pricing to secure new logo accounts temporarily compressing margins.
The drop was also linked to higher general and administrative expenses which increased 39 percent due to workforce expansion to support growth.
Tam Development Co. ended the session at SR175.80, down 6.02 percent.
Riyadh Steel Co. has also announced its annual financial results for the year, which ended on Dec. 31, 2024. A bourse filing revealed that the company reported a net profit of SR1.99 million in 2024, reflecting an 82.06 percent drop compared to 2023. This decline is owed to a reduction in selling prices, a decrease in other income, and higher expenses in comparison to the previous year.
Riyadh Steel Co. ended the session at SR2.01, down 0.49 percent.
Middle East Pharmaceutical Industries Co. has announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR79.85 million in 2024, reflecting a 21.3 percent drop compared to 2023.
This increase in net profit is primarily attributed to strong revenue growth and a higher gross profit margin, driven by product mix diversification and economies of scale from increased production. Nevertheless, the gain in gross profit was partially offset by higher selling, distribution, and general administrative expenses, which were largely due to ongoing investments in marketing, talent acquisition, and other growth-related initiatives.
Middle East Pharmaceutical Industries Co. ended the session at SR135.40, down 1.34 percent.
Alandalus Property Co. also announced its annual financial results for the year ending Dec. 31, 2024.
A bourse filing revealed that the company reported a net loss of SR31.6 million in 2024, down from an SR36.42 million net profit in 2023. This decline is primarily attributed to a decrease in operating profit resulting from operational losses incurred by some affiliated companies, particularly West Jeddah Hospital, due to the opening and commencement of operations at Dr. Sulaiman Al-Habib Medical Hospital in Jeddah at the end of the first quarter of 2024, along with recorded losses in Al-Jawhara Al-Kubra Co. The net loss is also linked to an increase in general and administrative expenses along with a 31 percent surge in financing costs compared to the previous year.
Alandalus Property Co. ended the session at SR23.00, down 1.13 percent.
Oil Updates — prices ease despite Trump warning of possible tariffs on Russian buyers
Updated 30 sec ago
Reuters
LONDON: Oil prices slipped on Monday, heading for a modest quarterly loss, despite a warning from US President Donald Trump that he may impose secondary tariffs on buyers of Russian oil if he feels Moscow is blocking his efforts to end the war in Ukraine.
The more active June Brent crude futures fell 30 cents, or 0.4 percent, to $72.46 a barrel by 6:30 a.m. Saudi time, while US West Texas Intermediate crude declined 33 cents, or 0.5 percent, to $69.03 a barrel.
Front-month Brent, which was down 26 cents, or 0.4 percent, at $73.36, expires later on Monday.
Both benchmarks were on track to end the month slightly lower, and post their first quarterly drop in two quarters.
Trump said on Sunday he was “pissed off” at Russian President Vladimir Putin and will impose 25 percent-50 percent secondary tariffs on buyers of Russian oil if he feels Moscow is hindering his efforts to end the war in Ukraine. Trump said he could impose the new trade measures within a month.
“There are a couple of ways to read the headlines and the price sell-off. The first is that the market isn’t buying into Trump’s threats and doesn’t believe it,” IG market analyst Tony Sycamore said.
“The second is that Trump’s threats, if enacted, would be another step down the pathway toward a trade war, which will weigh on global growth and demand for crude oil.”
Trump also threatened Iran on Sunday with bombing and secondary tariffs if Tehran did not come to an agreement with Washington over its nuclear program.
Meanwhile, the OPEC+ group, which comprises OPEC and allies led by Russia, is set to begin its program of monthly increases in oil production in April. The group will likely continue to raise oil output in May, Reuters reported last week.
“We expect WTI to stay in a range of $65 to $75 for now as the market assesses the impact of Trump tariffs on oil supply and global economy, as well as the supply situation from the US and OPEC+,” said Yuki Takashima, an economist at Nomura Securities.
Top oil exporter Saudi Arabia may lower its crude prices for Asian buyers in May to a three-month low, tracking the steep declines in benchmark prices this month, traders said.
Elsewhere, Iran has lowered the price of its light crude oil grade for Asian buyers to $3.95 a barrel above the Oman/Dubai average for April.
Talks to restart Kurdish oil exports through the Iraq-Turkiye pipeline have hit a snag as a lack of clarity over payments and contracts persists, two sources with direct knowledge of the matter told Reuters.
Qatar’s producer prices steady in February as oil, gas drag index
Updated 30 March 2025
REEM WALID
RIYADH: Qatar’s general producer price index for the industrial sector stood at 114.01 points in February, reflecting stability compared to January and a 0.33 percent decrease year on year.
Released by the Gulf country’s Planning and Statistics Authority, the data indicated that the PPI for the industrial sector is made up of four main components: mining and quarrying, which constitutes 82.46 percent, manufacturing at 15.85 percent, electricity at 1.16 percent, and water at 0.53 percent.
The newly released figures align with Qatar’s inflation easing by 1.15 percent year on year in January, with the consumer price index settling at 107.45 points, driven by declines in food, housing, and transport costs, official figures showed.
This trend is consistent with the 2.53 percent drop in CPI in January, mainly attributable to a decline in housing, water, electricity, and other fuel costs.
The decline comes as Qatar is projected to record the lowest inflation in the Gulf Cooperation Council region this year, averaging 1.4 percent, below the GCC’s 1.9 percent and the wider Arab region’s 8.5 percent, according to Kamco Invest.
The data further showed that the mining and quarrying sector index declined by 0.12 percent compared to January, primarily owing to a 0.11 percent drop in the prices of crude oil and natural gas extraction, while the costs for other mining and quarrying activities remained unchanged.
Annually, the sector’s index dropped by 0.42 percent, primarily due to a decline in oil and gas extraction, although there was a modest 0.06 percent increase in prices for other mining and quarrying activities.
In the manufacturing sector, the index rose by 0.50 percent on a monthly basis, driven by price increases in rubber and plastic products, refined petroleum, chemicals, and basic metals, as well as cement, non-metallic minerals, and beverages.
On an annual basis, the manufacturing sector index increased by 0.60 percent compared to the corresponding month a year earlier, driven by a notable rise in prices for basic metals, cement and non-metallic mineral products, and rubber and plastic products, as well as chemical products, beverages, and printing.
In the electricity, gas, and air conditioning supply sector, the index rose by 1.01 percent compared to January but showed a year-on-year decline of 8.28 percent.
The water supply sector saw a decrease in its index by 2.75 percent compared to January but recorded an annual increase of 7.24 percent in February.
The numbers also indicated that prices declined for refined petroleum goods and food products, while there was no change in the prices of printing and reproduction of recorded media.
Saudi Arabia’s domestic tourism thrives as Eid travel peaks
Updated 30 March 2025
REEM WALID
RIYADH: Saudi Arabia’s domestic tourism sector is experiencing a sharp rise in travel during Eid Al-Fitr, injecting fresh momentum into the hospitality industry. A growing preference for local destinations is reshaping the market as residents seek immersive experiences within the nation’s tourism landscape.
The Kingdom saw a 45 percent rise in domestic flight bookings in 2024, driven by expanding tourism offerings and greater connectivity through low-cost carriers, according to Almosafer’s latest travel trend report released in January.
Domestic travel has surged in recent years, with Eid Al-Fitr becoming a peak period for local tourism, said Nicolas Mayer, PwC Middle East partner and global tourism industry lead. He noted that domestic flight bookings rose 45 percent year-on-year in 2024, highlighting a growing preference for local exploration.
“There are a few key reasons behind this shift. First, the Kingdom has made huge strides in improving its tourism offerings. With more affordable flight options due to low-cost carriers, travel has become a lot more accessible,” Mayer said.
The report showed a 39 percent increase in domestic room night bookings, while combined local flight and hotel reservations accounted for over 40 percent of the travel market, up 11 percent year-on-year.
The surge in domestic travel is fueled by a broader range of destinations, accommodations, and experiences attracting leisure visitors. Family and group travel have been major drivers, with bookings in these segments soaring over 70 percent.
Saudi Arabia’s mega-projects, including NEOM, a futuristic city on the Red Sea, and The Red Sea Project, which focuses on luxury and eco-tourism, further fuel domestic tourism growth. Cultural landmarks like AlUla, known for its ancient Nabatean heritage, and Diriyah, the birthplace of the Saudi state, are undergoing significant restoration to offer visitors rich historical and cultural experiences.
“Eid Al-Fitr is a special time for families and culture, and it encourages travel and experiencing something new. There are so many great options for people to celebrate within the Kingdom — it’s a great opportunity to discover Saudi Arabia’s rich culture and hidden gems right here at home,” he added.
Mayer pointed to Saudi Arabia’s massive investment in tourism infrastructure under Vision 2030, which is making it easier for residents to explore new destinations.
The Kingdom’s Minister of Tourism Ahmed Al-Khateeb recently said that the nation’s tourism accommodation is expected to double over the next decade. The country currently has around 400,000 guest rooms, projected to reach 800,000 by 2030. Al-Khateeb reiterated Saudi Arabia’s goal of becoming one of the world’s top seven tourism destinations by the end of the decade.
At King Abdullah University of Science and Technology, officials have observed a significant rise in family and group bookings, which have grown over 70 percent across key traveler segments.
Nour El-Shikh, media and public relations specialist in global branding and communications at KAUST, said travel groups are gravitating toward destinations that offer distinctive events and experiences.
“While major cities like Makkah, Riyadh, and Jeddah remain popular, emerging spots like Abha, Al Jubail, Jizan, Tabuk, and Hail are drawing increased attention for their unique landscapes and activities,” El-Shikh said.
AlUla, a UNESCO-listed site, has also gained traction as a premier domestic and international destination, a sign of Saudi Arabia’s continued investment in diversifying its tourism appeal.
“This has fostered a renewed appreciation for the Kingdom’s rich cultural heritage and natural beauty. The combination of improved infrastructure, increased accessibility, and a growing emphasis on family-oriented activities has made exploring local destinations more appealing than ever,” El-Shikh added.
The Haramain Train, which connects Madinah, Jeddah, and Makkah, is another example of how Saudi Arabia is reducing car traffic and improving access to Islam’s two holiest cities, she added.
Nicolas Mayer, PwC Middle East partner, global tourism industry lead. Supplied.
Hotels, resorts adapt to demand
With the surge in domestic travelers, Saudi Arabia’s hospitality sector is evolving to cater to changing preferences. Mayer pointed out that hotels and resorts are focusing on personalized experiences rather than simply increasing room capacity.
“Take Eid, for example. It’s a time when families want to be together, enjoy traditions, and make memories. Operators are catching on to that and offering packages and programs that feel more meaningful — whether it’s culturally inspired dining, kids’ activities, or even small touches that reflect the spirit of the holiday,” he said.
The demand for alternative accommodations is also growing, with vacation rentals, villas, and hotel apartments gaining popularity, particularly among families. Meanwhile, digital innovation is playing a critical role in enhancing the travel experience.
“If the booking process isn’t smooth or the service isn’t responsive, people notice. Tech isn’t a nice-to-have anymore — it’s expected,” Mayer added.
El-Shikh echoed this sentiment, emphasizing that many establishments are expanding and renovating to accommodate larger groups. “They are also introducing special Eid packages with family activities, cultural events, and traditional culinary experiences,” she said.
Mobile apps, virtual tours, and seamless payment methods such as Apple Pay and buy now, pay later options are also shaping consumer behavior. Sustainability and eco-friendly practices are becoming a priority, aligning with modern travelers’ values.
Future of domestic tourism
Saudi Arabia’s domestic tourism market is set for further transformation, driven by technology and evolving consumer expectations. Mayer expects a rising demand for personalized, culturally immersive, and seamless experiences.
“On the business side, I’m seeing a lot of energy going into creating more curated, tech-enabled journeys. Travelers expect smooth bookings, helpful digital tools, and recommendations that feel relevant. It’s no longer about just having a website or an app — it’s about using tech to anticipate what people want before they even ask,” he said.
The expansion of tourism beyond the well-known urban centers is also unlocking new opportunities. “More regions across the Kingdom are starting to offer these kinds of experiences. We’re moving beyond the well-known cities, and that’s opening up a whole new set of opportunities for domestic tourism,” Mayer added.
El-Shikh highlighted a growing trend toward experiential travel, where visitors seek immersive cultural experiences. “Stakeholders are developing unique offerings that highlight the Kingdom’s diverse heritage and natural landscapes,” she said.
New infrastructure fuels demand
The Kingdom’s infrastructure expansion is proving to be a game-changer for domestic tourism. Mayer noted that investments in roads, airports, and public transport are making once-remote destinations more accessible.
“It’s not just about building new airports or roads — it’s about opening new areas of the country that people might not have explored before,” he said.
Businesses are capitalizing on this momentum by designing experiences tied to local culture. “Around Eid especially, we see more businesses take advantage of that momentum. They’re creating experiences that feel connected to a place — whether it’s a cultural festival, a family-friendly activity, or a beautifully restored heritage site that tells a local story. These touchpoints resonate with travelers because it’s not just leisure — it’s personal,” Mayer explained.
El-Shikh added that in-destination activities such as guided tours, adventure sports, and cultural experiences are central to travel, enhancing engagement with local communities. “By collaborating with local artisans, cultural institutions, and heritage sites, tourism businesses are creating unique experiences that resonate with residents and encourage them to appreciate their own cultural heritage,” she said.
As Saudi Arabia continues to develop its tourism sector, a rising emphasis on domestic travel is expected to fuel sustained growth, further embedding Eid Al-Fitr as a cornerstone of the Kingdom’s evolving travel landscape.
Oman’s Islamic banking assets surge 17% to $22.3bn in 2024
Updated 30 March 2025
MIGUEL HADCHITY
RIYADH: Islamic banking in Oman continued its rapid expansion in 2024, with total assets reaching 8.6 billion Omani rials ($22.3 billion) by December — marking a 16.6 percent increase from the previous year, official data showed.
The segment now accounts for 19.2 percent of Oman’s total banking assets, according to data released by the Central Bank of Oman.
Financing extended by Islamic financial institutions grew by 14.2 percent to approximately 7 billion rials. Additionally, deposits at Islamic banks and windows jumped 21.3 percent, reaching nearly 6.7 billion rials by the end of December.
The steady growth of Oman’s Islamic banking sector reflects the rising demand for Shariah-compliant financial services and its expanding contribution to the country’s banking industry, CBO added.
Oman’s banking system comprises both conventional and Islamic banking services. Islamic banking is offered through standalone financial institutions and dedicated windows within conventional banks, which can be local or foreign entities licensed in Oman.
In May 2011, the CBO issued preliminary licensing guidelines to introduce Islamic banking in the Sultanate. This framework enabled full-fledged Islamic banks and Islamic windows to operate alongside conventional financial institutions.
The initiative was formally established in December 2012 through a Royal Decree that amended the Banking Law, mandating Islamic banks and windows to form their own Shariah supervisory boards. It also authorized the CBO to create a central High Shariah Supervisory Authority.
Following these developments, the CBO introduced the Islamic Banking Regulatory Framework in December 2012, alongside regulations governing the Hawala Settlement and Safeguard Account.
This initiative aligned with Oman’s broader economic strategy, promoting financial inclusion, economic diversification, and responsible financial practices.
Since its inception, Islamic banking in Oman has played a key role in advancing the objectives of Oman Vision 2040.
“This sector has played a vital role in augmenting national savings and investment, contributing to the development of a more diversified investment base and availability of wider range of financial products and services for consumers and businesses,” CBO said.
In November, Fitch Ratings forecasted continued growth in Oman’s Islamic finance sector, driven by increasing consumer demand, expanding distribution networks, greater use of sukuk for public funding, and ongoing regulatory advancements.
A key development in October was the CBO’s introduction of the Bank Deposit Protection Law, extending deposit protection to Islamic financial institutions — an essential step in bolstering confidence in the sector.
The agency added that strong economic conditions, improved asset quality, stable profitability, and solid capitalization position Islamic banks to withstand moderate financial shocks, despite regional geopolitical risks.
Saudi Arabia’s non-oil exports to UAE surge 10% in January: GASTAT
Updated 30 March 2025
Nirmal Narayanan
RIYADH: Saudi Arabia’s non-oil exports to the UAE rose to SR7.10 billion ($1.89 billion) in January, a nearly 10 percent monthly increase, highlighting the Kingdom’s push to diversify beyond oil revenues.
Machinery and mechanical equipment led the non-oil shipments at SR3.46 billion, followed by transport parts at SR1.74 billion, according to the General Authority for Statistics.
In December, Saudi Arabia’s non-oil shipments to the UAE totaled SR6.46 billion, down from SR7.17 billion in November and SR5.86 billion in October.
The rise in non-oil exports underscores the Kingdom’s progress in economic diversification, as it moves to reduce its decades-long reliance on crude revenues.
Affirming the non-oil private sector’s growth, Saudi Arabia’s Purchasing Managers’ Index reached 58.4 in February, according to the Riyad Bank Saudi Arabia PMI survey compiled by S&P Global.
In January, the Kingdom’s PMI stood at 60.5, its highest level in 10 years.
In the UAE, the PMI was 55 in February, while Qatar and Kuwait recorded 51 and 51.6, respectively.
At the World Economic Forum in Davos in January, Saudi Finance Minister Mohammed Al-Jadaan reiterated the Kingdom’s commitment to economic diversification under Vision 2030, emphasizing that growing non-oil gross domestic product remains a priority over traditional oil revenues.
According to the GASTAT report, Saudi Arabia also exported plastic goods worth SR307 million in January, followed by base metals at SR288.2 million and chemical products at SR266.2 million.
China was another major destination for the Kingdom’s non-oil goods, receiving SR2.22 billion worth of products.
Saudi Arabia exported plastic goods worth SR990.9 million to China, followed by chemical products at SR703.2 million.
India ranked third among non-oil export destinations, importing Saudi products worth SR2.00 billion in January, a 7.52 percent increase from the previous month.
Other top destinations for the Kingdom’s non-hydrocarbon goods in January were Turkiye, with a value of SR1.10 billion; the US at SR1.02 billion; and Qatar at SR763.6 million.
Egypt received non-oil goods valued at SR751.7 million in January, while exports to Kuwait and Belgium totaled SR646.9 million and SR632.2 million, respectively.
Overall non-oil exports
Saudi Arabia’s total non-oil exports in January reached SR26.48 billion, reflecting a 10.7 percent year-on-year increase.
In November, Saudi Arabia's Minister of Economy and Planning, Faisal Al-Ibrahim, stated that non-oil activities now account for 52 percent of GDP, with the sector growing at 20 percent annually since Vision 2030’s launch.
GASTAT noted that national non-oil exports, excluding re-exports, rose by 13.1 percent over the same period.
A December report by Mastercard Economics highlighted Saudi Arabia’s strong non-oil sector growth, forecasting a 3.7 percent GDP expansion in 2025 driven by further non-oil advancements.
Jeddah Islamic Sea Port was the primary exit point for non-oil goods in January, handling SR3.12 billion worth of shipments.
King Fahad Industrial Sea Port in Jubail and King Abdulaziz Sea Port in Dammam managed SR3.23 billion and SR2.50 billion in outbound goods, respectively.
Jubail Sea Port was the exit point for goods worth SR2.49 billion, followed by Ras Tanura Sea Port at SR1.65 billion and Ras Al Khair Sea Port at SR1.41 billion.
Via land, Al Batha Port processed SR1.89 billion in exports, while Al Hadithah Port handled SR706.5 million.
Among airports, King Khalid International Airport in Riyadh saw outbound shipments worth SR2.67 billion, followed by King Abdulaziz International Airport at SR2.26 billion.
King Fahd International Airport in Dammam handled SR286.9 million in exports.
Overall merchandise exports
Saudi Arabia’s total merchandise exports in January stood at SR97.18 billion, marking a 2.4 percent year-on-year rise.
The ratio of non-oil exports, including re-exports, to imports, increased to 36.5 percent in January from 35.7 percent in 2024.
However, oil exports declined by 0.4 percent year on year in January, reducing oil’s share of total exports from 74.8 percent in 2024 to 72.7 percent in 2025.
Saudi Arabia’s merchandise exports to Asia totaled SR75.43 billion in January, a 6.01 percent increase from the previous month.
Exports to Europe reached SR10.17 billion, followed by Africa at SR7.28 billion and North America at SR3.95 billion.
China was the top recipient of Saudi exports, receiving SR14.74 billion in January, a 20.32 percent increase from the previous month.
Other key destinations included India at SR10.60 billion, Japan at SR9.90 billion, and South Korea at SR9.05 billion.
Saudi Arabia’s exports to the UAE totaled SR8.44 billion, while outbound shipments to Egypt stood at SR2.84 billion.
Imports in January
Saudi Arabia’s imports rose 8.3 percent year on year in January 2025, reaching SR72.62 billion.
China remained the Kingdom’s top import source, supplying SR19.16 billion worth of goods, led by mechanical appliances and electrical equipment at SR7.95 billion.
The Kingdom imported transport products worth SR2.78 billion from China, followed by base metals at SR1.96 billion and textiles at SR1.19 billion.
Imports from the US totaled SR6.04 billion, while inbound shipments from the UAE and India stood at SR3.96 billion and SR3.80 billion, respectively.
Saudi Arabia also imported goods worth SR3.00 billion from Germany and SR2.48 billion from Egypt.
Japan supplied SR3.44 billion in imports, followed by Italy at SR2.41 billion and France at SR1.85 billion.
Sea shipments accounted for SR44.72 billion of total imports, while land and air imports stood at SR8.62 billion and SR19.27 billion, respectively.
King Abdulaziz Sea Port in Dammam was the leading entry point, handling SR20.92 billion in imports, or 28.8 percent of total inbound shipments.
Jeddah Islamic Sea Port followed with SR16.75 billion, while Ras Tanura Sea Port and King Abdullah Sea Port processed SR1.70 billion and SR1.11 billion, respectively.
On land, Al Batha Port and Riyadh Dry Port handled SR3.82 billion and SR2.52 billion in incoming goods, respectively.
Among airports, King Khalid International Airport in Riyadh received SR9.01 billion in imports, followed by King Abdulaziz International Airport at SR6.24 billion and King Fahd International Airport at SR4.00 billion.
