Latest news with #QNB
Zawya
21 hours ago
- Business
- Zawya
Qatar National Bank suspends share buyback, to resume on July 10
Doha: Qatar National Bank (QNB) Group said that in accordance with Qatar Financial Markets Authority regulations, QNB will not conduct its share repurchase during the closed period commencing from 25 June 2025 to 9 July 2025, due to the upcoming publication of QNB Group's interim financial results for the six months period ending 30 June 2025. QNB will recommence its share repurchase from 10 July 2025, QNB said in a statement published on Qatar Stock Exchange website. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
African Manager
5 days ago
- Business
- African Manager
China is set to be resilient to global trade shocks
The year started for China with a positive tone on the back of a turnaround in private sector sentiment, driven by a more supportive economic policy mix, optimism around the country's capabilities on artificial intelligence (AI), and a stabilization in manufacturing activity. Importantly, this came after years of subdued investor appetite and volatile growth on the back of real estate wounds, regulatory stringency, limited official stimulus, and the trauma from hard pandemic lockdowns. Such positive outlook and turnaround translated into stronger activity and constant upgrades in growth expectations since September 2024. However, global macro prospects were suddenly shaken by a radical shift in US trade policies in February, when president Trump announced a massive increase in import tariffs. China, in particular, was singled out by the US with 'embargo like' 140% tariffs and much less room for exemptions. After bilateral negotiations started, tariffs were reduced to a more manageable but still high 40% rate. Despite this major shock, China's economy appears to be resilient. In fact, across major economies, China seems to be the least affected by growth expectations downgrades since US tariffs 'Liberation Day,' even if the country is by far the largest exporter globally. 2025 growth expectations downgrades (Bloomberg consensus, % real GDP growth for the year) Sources: Bloomberg, QNB analysis In our view, three main factors sustain a more optimistic economic take on China in the face of the US policy shock. First, despite being the world's largest exporter and a key node in global manufacturing, the overall impact from US tariffs on China's growth is very limited. This is largely due to the declining importance of the US as an export destination and Beijing's strategic reorientation of trade flows. In the early 2000s, the US accounted for nearly 20% of Chinese exports, but this share has declined to around 15% in recent years, equivalent to around 2.8% of the country's GDP. Exports grew stronger in markets such as Southeast Asia, the EU, and Belt and Road countries, helping to offset US-driven losses. Moreover, exports themselves have been declining in overall importance to China's economic model, now contributing less than 20% to GDP – compared to 35% in 2006 – amid a policy-led pivot toward domestic consumption, high-tech innovation, and services. These structural shifts, coupled with adaptive trade strategies, have helped insulate China from the full brunt of Trump-era tariffs, reducing their macroeconomic impact and sustaining the country's external surplus. Chinese exports of goods in perspective (USD Bn, total for 2024) Sources: Haver, QNB analysis Second, tariffs are blunt tools in a world of fragmented supply chains, and China's central role in global production networks has significantly diluted their effectiveness. Unlike the bilateral trade flows of the past, modern goods cross multiple borders during assembly, making it hard to isolate national value added. Multinational firms adapt quickly, shifting final assembly to third countries while maintaining Chinese inputs through transhipment. These workarounds often outpace enforcement, undermining the intent of protectionist policies. Additionally, a substantial share of Chinese exports – such as critical components in electronics, machinery, and pharmaceuticals – are not easily substitutable and remain essential to US firms and supply stability. As a result, tariffs are unlikely to trigger reshoring and China is expected to retain its role as an indispensable link in global manufacturing. Third, US tariffs are expected to be offset by the devaluation of the Chinese renminbi (RMB), particularly in real effective terms, which is enhancing China's price competitiveness globally. Since the escalation of the 'trade war' in February, the RMB has weakened against the USD, but even more so against a broader basket of currencies, resulting in a meaningful depreciation of China's real effective exchange rate (REER). This has lowered the relative cost of Chinese exports in non-USD markets, helping Chinese firms gain market share globally despite higher US tariffs. The REER adjustment acts as an automatic stabilizer for China. In effect, the RMB's adjustment is helping to preserve or even increase external demand, ensuring continued export surplus, further underscoring the limitations of unilateral trade barriers. All in all, China's growth prospects this year remain moderately robust despite continued trade tensions. This is due to a structural decline in US export dependence, the ineffectiveness of tariffs in a globalized supply chain environment, and the competitive tailwind from a weaker RMB collectively cushioning the Chinese economy from material external shocks.
Business Insider
19-06-2025
- Business
- Business Insider
Africa's poorest country faces $1 billion battle in U.S. court over war-era loan default from Qatar
Qatar National Bank (QNB) has taken legal action against South Sudan in a U.S court, seeking to enforce a $1 billion arbitration award after the country defaulted on a wartime loan. Qatar National Bank (QNB) has initiated legal action in the U.S. to enforce a $1 billion arbitration award against South Sudan South Sudan defaulted on a $700 million wartime loan from QNB, which has accrued additional debt due to penalties and interest. South Sudan's civil war severely impacted the economy, reducing GDP significantly and causing widespread challenges The petition, filed in a U.S court in Washington, D.C., follows South Sudan's failure to repay a $700 million loan obtained from Qatar during the height of its civil war, a debt that, with interest and penalties, has now ballooned to over $1 billion. The original loan was intended to stabilize South Sudan's fragile economy during a period of intense internal conflict. However, nearly a year after an international tribunal under the International Centre for Settlement of Investment Disputes (ICSID) ruled in favor of QNB, South Sudan and its central bank have reportedly neither paid the award nor challenged it. QNB's move to seek enforcement in the U.S. has revealed the growing frustrations over the lack of compliance and highlights how sovereign debt disputes are increasingly playing out on global legal stages. According to the International Monetary Fund (IMF), South Sudan had the lowest GDP per capita in 2025, making it one of the poorest countries in Africa. Thus, the $1 billion court case with Qatar National Bank (QNB) over an unpaid wartime loan reflects the severity of the country's economic crisis. If the U.S. court agrees to uphold the award, South Sudan could face asset seizures or further diplomatic pressure to meet its obligations. The South Sudan war The South Sudanese civil war, which ran from December 2013 to February 2020, began as a political clash between President Salva Kiir and former Vice President Riek Machar, but quickly turned into an ethnic conflict between the Dinka and Nuer. Coming just two years after independence in 2011, the war exposed the country's weak institutions and deep divisions. Beyond the human cost of over 400,000 deaths and millions displaced, the economy lost more than $28 billion in GDP between 2013 and 2018. Oil production which is South Sudan's main revenue source, plunged, inflation soared, and public services collapsed as the war devastated infrastructure and drove away investors. The loan dispute South Sudan's loan dispute with Qatar National Bank (QNB) began after independence in 2011, when the country secured credit to fund essential imports. Shortly after becoming a nation in 2011, South Sudan and its central bank secured loans from QNB to fund critical imports such as food, medicine, and refined oil. When the civil war erupted in late 2013 and oil revenues collapsed, QNB extended additional credit, including a $250 million top-up. By 2015, South Sudan began defaulting, prompting two debt renegotiations. The final 2018 agreement consolidated the loans into a $700 million, 15-year facility, with repayments set to begin in March 2019. After drawing down about $659.8 million, South Sudan missed its first payment, triggering a formal arbitration process. QNB filed a claim in 2020 under ICSID rules. Following hearings in London, the tribunal ruled in January 2024 that both South Sudan and its central bank had breached the loan terms. A final award issued in May ordered them to pay over $1.02 billion, including principal, interest, and legal costs. Despite the ruling, QNB says South Sudan has neither paid nor contested the award. According to court filings reviewed by SudansPost, QNB argues that under U.S. law and the ICSID Convention, the arbitration award must be enforced 'like a final court judgment. ' The bank says South Sudan waived any sovereign immunity t hrough its contract and ICSID membership.
Zawya
13-06-2025
- Business
- Zawya
Gold price in Qatari market rises by 0.93% this week
Doha: The price of gold in the Qatari market rose by 0.93 percent during the current week, reaching USD 3,339.67 per ounce, according to data issued by Qatar National Bank (QNB). The data showed that the price of gold rose from USD 3,308.9847 per ounce recorded last Tuesday. It also indicated that other precious metals recorded weekly changes, with silver rising by 0.12 percent, to USD 36.6066 per ounce, up from USD 36.5645 recorded midweek, while platinum increased by 0.53 percent, reaching USD 1,231.3491 per ounce, compared to the USD 1,224.83 recorded earlier this week. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
09-06-2025
- Business
- Zawya
Banking, realty, energy sectors drive Qatari-listed companies' earnings in Q1
Doha, Qatar: The total earnings for Qatari-listed companies witnessed a marginal gain of 0.9% during the first quarter (Q1) of this year to reach $3.62bn as compared to $3.59bn in Q1-2024. The surge in earnings was primarily driven by earnings growth in the Banking, Real Estate and Energy sectors. Qatar's banking sector reported a profit growth of 1.1% in Q1-2025 that reached $2.09bn accounting for 57.7% of the overall exchange profits during the quarter, according to Kamco Invest GCC Corporate Earnings report. QNB's net profit reached $1.2bn in Q1-2025, up 2.9% compared to $1.1bn in Q1-2024, driven by higher operating income which increased 5.3% to reach $3bn. The bank reported a 6% increase in customer deposits while loans and advances increased by 9% to reach $260.1bn. Meanwhile, QIB's net profit surged 3.2% in Q1-2025 to reach $270.2m versus $261.9m in Q1-2024. The bank reported higher net interest income and non-interest income and a marginal decline in quarterly impairments during Q1-2025. The net profits for Qatar International Islamic Bank increased by 6.4% to $97.7m Q1-2025 from $91.9m in Q1-2024 mainly led by an increase in net interest income that more than offset a decline in non-interest income. A fall in impairments during Q1-2025 also supported bottom-line growth during Q1-2025. In the Telecom sector, Ooredoo reported net profits of $263.3m in Q1-2025 as compared to $250.3m in Q1-2024, up by 5.2% mainly led by lower forex impact during the quarter as well as a fall in interest expense. Meanwhile Vodafone Qatar reported a net profit of $44.5m for Q1-2025, representing an increase of 8.2% y-o-y compared to $41.2m in Q1-2024. The total revenue increased by 6.1% y-o-y to reach $234.8m due to sustained growth across all core business segments, including mobility, fixed broadband services, managed services, Internet of Things (IoT), handsets and others. Service revenue grew by 2.5% to $198m. EBITDA increased by 6.1% to reach $98.3m impacted by the higher service revenue. EBITDA margin remained stable at 41.9%. The net profits for the Energy sector improved by 7.5% y-o-y to reach $242.9m supported by profits reported by Gulf International Services Co. and Qatar Gas Transport Co. (Nakilat). Net profits for Gulf International Services Co. increased by 37.8% to reach $60.9m in Q1-2025 versus $44.2m for Q1-2024 driven by the strong results from the aviation, drilling, and insurance segments. The drilling segment recorded stronger performance driven by increased rig move activity during the current quarter in addition to higher rig utilization. The aviation segment benefited from higher contributions from the MRO segment, supported by additional third-party engine overhaul works. Meanwhile, revenue growth in the insurance segment was attributed to the higher earned portion of policies issued during the quarter. Qatar Gas Transport Co. posted a net profit increase of 3.2% to reach $118.8m in Q1-2025 versus $115.1m in Q1-2024 mainly led by the increase in revenue due to strong demand from wholly owned vessels, partially offset by lower contributions from LNG and LPG joint ventures. This was achieved despite lower income due to capital allocation towards the newbuild program. The company's LPG joint venture outperformed during the quarter mainly due to improved charter rates, cost efficiencies and increased operating days due to two vessels drydocking in Q1-2024. The aggregate net profits reported companies listed on GCC exchanges increased by 2.0% y-o-y during Q1-2025 to reach $58.6 Bn as compared to $57.4 bn in Q1-2024. The marginal improvement in profitability was mainly led by a y-o-y increase in profits for Banks, Telecom and Real Estate sectors that more than offset a decline in profits for the Energy, Materials and F&B sectors. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
