Gulf shares rise as Iran-Israel ceasefire holds
US President Donald Trump hailed the swift end to the air war between Iran and Israel and said Washington would likely seek a commitment from Tehran to end its nuclear ambitions at talks with Iranian officials next week.
Saudi Arabia's benchmark stock index extended its gains to a fourth straight session, rising 0.2 percent, with most sectors in the green. Oil major Saudi Aramco added 0.3 percent and Red Sea International climbed 3 percent.
Modular house manufacturer Red Sea said on Wednesday it planned to float its mechanical, electrical and plumbing subsidiary on the Saudi market.
Oil prices, a catalyst for the Gulf's financial markets, were up 0.2 percent as a larger-than-expected draw in US crude stocks signalled firm demand. Brent crude was trading at $67.83 a barrel by 10:05 a.m. Saudi time.
The Abu Dhabi benchmark index rose 0.4 percent, aided by a 5.3 percent advance in RAK Properties and a 0.6 percent gain in Borouge.
Petrochemical company Borouge said on Wednesday it would collaborate with Honeywell on a project to deliver the petrochemical industry's first AI-driven control room.
Dubai's benchmark stock index was up for a fifth straight session, advancing 0.6 percent, pushed up by the materials, industry and finance sectors.
Tolls operator Salik gained 1.8 percent and Emirates NBD, the emirate's largest lender, added 0.6 percent.
The Qatari benchmark index was marginally up, propped up by gains in the materials, utilities and communications sectors.
Vodafone Qatar advanced 1.2 percent while Qatar National Bank, the region's largest lender, shed 0.3 percent.
Qatar Investment Authority and Canadian asset manager Fiera Capital have launched a $200 million fund to boost foreign and local investment into the Gulf state's stock market, QIA said on Wednesday.
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33 minutes ago
- Arab News
Saudi Arabia, Morocco set to boost economic ties with focus on trade, sustainable development
JEDDAH: Saudi Arabia and Morocco are set to enhance economic ties by expanding trade and cooperation in agriculture, renewable energy, and sustainable development following a Saudi business delegation's visit to Rabat. As part of a business trip that began on June 29 to Mauritania and Morocco, a delegation from the Saudi Federation of Commerce, led by chairman Hassan Moejeb Al-Huwaizi and joined by 30 top investors and company officials, visited Rabat to explore investment opportunities and enhance cooperation between the public and private sectors. The delegation held several meetings with ministers to discuss strategic trade and investment issues, according to the Saudi Press Agency. The visit aligns with the SFC's strategy to enhance economic cooperation and facilitate investment, reflecting the shared vision for the future between the Kingdom and Morocco. Their trade volume reached SR5 billion ($1.33 billion) in 2024, with exports from Saudi Arabia totaling SR4.3 billion and imports amounting to SR640 million. According to the SFC, Morocco ranks as the Kingdom's 57th largest trading partner in terms of exports and 51st in terms of imports. Saudi Arabia's main exports to Morocco include cars and vehicles, insulated wires, chemical fertilizers, and women's clothing. The primary imports from Morocco comprise refined petroleum, cars and vehicles, vehicle accessories, and wheat. 'The delegation began its meetings with the Minister of Industry and Trade, Ryad Mezzour, to discuss ways to enhance commercial cooperation and expand the volume of trade exchanges between the two countries,' SPA reported. It added that the delegation also met with Minister of Agriculture, Maritime Fisheries, Rural Development, Water, and Forests Ahmed El-Bouari, who highlighted the significant potential in the agricultural and maritime sectors, opening new horizons for cooperation in production and export. The meetings included a session with Karim Zaidan, the delegate-minister to the head of government in charge of investment, convergence, and the evaluation of public policies, during which investment opportunities and joint projects contributing to sustainable development were discussed, as per SPA. The report said that the Saudi delegation also met with Minister of Energy Transition and Sustainable Development Leila Benali to explore cooperation in renewable energy, with a focus on exchanging experiences and expertise in this vital sector. Morocco's economy is demonstrating continued resilience and diversification, with the country's foreign trade volume reaching $120 billion in 2024, according to data from the FSC. The nation's gross domestic product for the same year is estimated at $155 billion, underscoring sustained activity across key sectors. The country holds a BB+ credit rating and ranks 60th globally in terms of economic performance. The services sector remains the backbone of the Moroccan economy, accounting for 54.2 percent of the nation's GDP. It is followed by industry at 24.5 percent and agriculture at 11.06 percent, reflecting a balanced contribution from both modern and traditional economic drivers. In terms of trade composition, Morocco's top imported goods include fruits, textiles, and transport equipment. Meanwhile, the country's main exports comprise chemical products, industrial goods, as well as leather and rubber.
Arab News
2 hours ago
- Arab News
Global public debt hits record $102tn, with developing nations bearing the brunt: UNCTAD
RIYADH: Global public debt rose to an all-time high of $102 trillion in 2024, representing a 7.36 percent increase compared to the previous year, according to a leading UN body. Nearly one-third of this total — or $31 trillion — is owed by developing nations, UN Trade and Development said in its publication 'A World of Debt 2025.' The debt figure rose from $97 trillion in 2023 and $90 trillion in both 2021 and 2022, underscoring the continued acceleration in sovereign borrowing. The data arrives just months after the International Monetary Fund forecast a sharper rise in debt levels, projecting a 2.8 percentage point increase in 2025, pushing global public debt above 95 percent of gross domestic product. In its report, UNCTAD stated: 'Public debt can be vital for development. Governments use it to finance expenditures, protect and invest in their people and pave the way to a better future.' It added: 'However, when public debt grows excessively or its costs outweigh its benefits, it becomes a heavy burden. This is precisely what is happening across the developing world today.' Public debt hitting developing nations UNCTAD's report highlights that public debt in developing countries has grown twice as fast as in advanced economies since 2010. Regional debt distribution shows Asia and Oceania account for 24 percent of the global total, followed by Latin America and the Caribbean at 5 percent, and Africa at 2 percent. 'The burden of this debt varies significantly based on the price and maturity of the debt finance countries have access to, and is further exacerbated by the inequality embedded in the international financial architecture,' said UNCTAD. The report further noted that developing countries are now facing a high and growing cost of external public debt, with half of these nations paying at least 6.5 percent of export revenues to service external debt in 2023. Developing countries spent $487 billion on external public debt service during that 12-month period. Additionally, half of developing nations are allocating at least 8.6 percent of their public revenues to servicing external debt — nearly double the 4.7 percent recorded in 2010. 'This situation leaves fewer public resources available for investments in human capital and sustainable development, and is exacerbated by deteriorating global economic prospects that undermine revenue collection,' said UNCTAD. Net interest payments on public debt in developing countries reached $921 billion in 2024, marking a 10 percent increase from the previous year. UNCTAD said the pressure of interest payments is especially pronounced in Africa and Latin America and the Caribbean, where at least half of the countries allocate a double-digit share of their public revenues to interest. A record 61 developing countries allocated 10 percent or more of their revenues to interest payments in 2024. Between 2021 and 2023, Africa spent $70 per capita on interest, exceeding the $63 per capita on education and $44 per capita on public health. In Latin America and the Caribbean per capita spending on interest reached $353, slightly below the $382 per capita on health and $403 on education. Resource outflows deepen challenges Developing nations experienced a net resource outflow for the second consecutive year. In 2023, they paid $25 billion more to external creditors in debt servicing than they received in fresh disbursements, resulting in a negative net resource transfer. A total of 51 developing countries experienced net outflows of debt finance, nearly twice as many as in 2010, with most of the affected nations located in Africa and Asia and Oceania. 'The impact of these trends on development is a major concern, as people pay the price. Persistently high interest rates, weak global economic prospects and heightened uncertainty are having a direct impact on public budgets,' said UNCTAD. The UN body added that interest payments are growing faster than critical expenditures on health and education. 'In many developing countries, the need to service existing obligations is constraining spending in other key areas essential for sustainable development. Overall, a total of 3.4 billion people live in countries that spend more on interest payments than on either health or education,' added the report. It continued to say that high interest rates, weak global growth and rising uncertainty are squeezing public budgets. 'The consequences are direct and devastating, as people — especially vulnerable populations — pay the price,' said the report. In April, the IMF warned that debt levels could exceed risk estimates for 2024 if revenues and output fall more than expected due to weakened growth and rising trade tensions. It also flagged that geoeconomic uncertainties could fuel further debt risks, especially via increased defense spending. In its latest report, UNCTAD added that borrowing costs of most developing countries far exceed those of developed nations. 'Developing regions borrow at rates that are two to four times higher than the US. This increases the resources needed to pay creditors, making it more difficult for developing countries to finance investments while preserving their debt sustainability,' said UNCTAD. Reformatory measures UNCTAD emphasized that developing nations should not be forced to choose between debt servicing and public welfare. Underscoring the necessity to reform the international financial architecture, UNCTAD said that the economic system should be more inclusive and development-oriented, adding that developing nations should enhance the availability of liquidity in times of crisis. 'This can be achieved through enhanced use of Special Drawing Rights, temporary suspension of IMF surcharges, greater access to IMF emergency financing windows linked to countries' quotas, and increased use of regional financial arrangements and South-South regional financial cooperation,' said the report. Developing countries should also work to develop an effective debt workout mechanism that addresses current deficiencies. Highlighting the importance of global coordination, UNCTAD added that it is necessary to provide more and better concessional finance and technical assistance to support countries in tackling the high cost of debt. 'The world has long been talking about reform. It is time to move from conversation to action,' said UNCTAD. In June, the World Bank echoed this sentiment, calling for radical debt transparency among developing countries and creditors. The bank urged countries to introduce legal and regulatory reforms that mandate full disclosure when signing new loan contracts, to help stave off future crises.
Arab News
3 hours ago
- Arab News
Saudi Power Procurement Co. signs $458m wind power deal for Yanbu project
RIYADH: Saudi Power Procurement Co. has signed a power purchase agreement for the 700-megawatt Yanbu Wind Power Project, backed by an investment exceeding SR1.7 billion ($458 million). The deal was finalized with a consortium made up of Japan's Marubeni Corp. and the Kingdom's Abdulaziz Al-Ajlan Sons for Commercial and Real Estate Investment Co. the Saudi Press Agency reported. This aligns with the Kingdom's National Renewable Energy Program, a strategic framework overseen by the government and designed to diversify the Kingdom's power sources. The SPA reported that the project will help in 'maximizing economic returns by contributing to the displacement of liquid fuels used in electricity production, and achieving the optimal energy mix for electricity production' so the share of renewable energy sources will reach approximately 50 percent of the national mix by the end of the decade. Renewables capacity in Saudi Arabia is planned to reach between 100 gigawatts and 130 GW by 2030, significantly increasing the nationwide supply of solar and wind energy. The Yanbu Wind Power Project will be situated in the Madinah region and is expected to generate electricity at a cost of SR0.06 per kilowatt‑hour, according to SPA. This competitive tariff highlights the increasing cost-effectiveness of renewable energy technologies in Saudi Arabia. SPPC is responsible for managing the Kingdom's electricity sourcing processes. This includes conducting feasibility studies, organizing competitive tenders for power generation projects, and entering into agreements to purchase electricity from independent power producers. In November, the company signed agreements for five independent energy projects in the Kingdom, which have a total capacity of 9.2 GW. The new power generation projects include two thermal energy plants, Rumah and Al Nairyah, and the Al Sadawi Solar Photovoltaic Project. The Rumah and Al Nairyah facilities will utilize the flexible combined cycle gas turbine technology for their operations, and are designed to incorporate carbon capture units, contributing a combined 7.2 GW to the national grid. Both facilities are scheduled to begin commercial operations by the second quarter of 2028.
