KSA Economy News & Discussions

[elszADaQ]

"The Saudi Arabian Mining Company (Ma'aden) and Alcoa announced Tuesday at a customer event that the rolling mill at their joint venture aluminum complex in Saudi Arabia has successfully produced its first production-grade coil. The mill at Ras Al Khair is the most technologically advanced in the region and the first in the Middle East capable of producing food grade can sheet, as well as sheet for automotive and building and construction applications"

Ma’aden hosts customers at Most Technologically Advanced Aluminum Rolling Mill in the region |

 

[Arabian Legend]

KSA to grow as 7th largest emerging market by 2030

Credit Suisse forecasts Saudi Arabia to emerge as the seventh largest emerging capital market by the year 2030 (with the equity market growing to be the sixth largest emerging market from the current 10th position).
According to Credit Suisse estimates cited in a new report, Saudi Arabia would account for the second largest share of emerging ECM deal fees ($5.5 billion) over the next 17 years.
As a market with high retail ownership and a strong equity culture among high net worth individuals, secondary activity in equities should also prove to be a significant source of revenue, with average daily traded value expected to grow from $1.8 billion currently to $16.4 billion by 2030E.
The high forecast growth rate observed for Saudi Arabia would be consistent with a potential liberalization of the country’s markets, when the Saudi Capital Markets Authority proceeds with a reform package opening its bourse to direct foreign participation, thus creating significant additional external demand for Saudi assets.
Driven by accelerating growth in capital raising activities over the next one-and-a-half decades, emerging nation capital markets are expected to capture a more proportionate share of the global capital market universe relative to their economies, closing the gap with their developed peers, according to the Credit Suisse Research Institute’s “Emerging Capital Markets: The Road to 2030” report.
Despite rapid growth in capital-raising over the past two decades, emerging country capital markets remain underdeveloped relative to the size of their economies.
With a 39 percent share of global output – or 51 percent based on purchasing power parity, the 20 emerging nations currently only represent less than half of their fair share of the global capital market universe — accounting for only 22 percent of global equity market capitalization, and a 14 percent of the global corporate and sovereign bond markets.
The Credit Suisse Research Institute, however, forecasts that by 2030, Emerging Market share of global equity market capitalization will increase to 39 percent, while for corporate bonds and sovereign bonds to 36 percent and 27 percent respectively, around double their current market share.
“The disparity between developed and emerging nations in the global capital market universe will close by 2030. This should be driven by a disproportionately large contribution from emerging market equity and corporate bond supply and demand driven by growth in domestic mutual, pension and insurance funds, given the relatively high savings ratios prevalent among emerging economies. Moreover, the growing ability of Emerging Market corporates to access local currency capital markets shields them from the risk of exposure to unforeseen exchange-rate volatility,” says Stefano Natella, global head of equity research, Investment Banking, at Credit Suisse in New York.
Credit Suisse forecasts that the fastest 17-year nominal US dollar compound annual growth rate in market value of any asset class will be Emerging Market equities and corporate bonds at 13 percent, followed by Emerging Market sovereign bonds at 8 percent, doubling the growth pace of their developed peers.
Credit Suisse is forecasting growth in developed market equities, corporate and sovereign bonds to slow down at a pace of 7 percent, 5 percent and 3 percent, respectively. Consequently, the market value for emerging equities, corporate and sovereign bonds increases by $98 trillion, $47 trillion and $17 trillion, respectively, in nominal dollar terms between 2014 and 2030E, versus gains of $125 trillion, $52 trillion and $24 trillion, respectively, for these asset classes in the developed world.
“In this study, we extrapolate established historical patterns of growth in emerging and developed capital markets to assist in projecting their absolute and relative dimension and composition of market value by the year 2030. We find a strong relationship between the historical expansion of developed nation aggregate equity and corporate bond market value relative to GDP and gains in economic productivity. Thus, we used long-term projections of per capita GDP to make forecasts for both emerging and developed market equity and fixed income issuance over the 17 years to 2030,” explains Alexander Redman, Global Emerging Markets Equity Strategist, Investment Banking at Credit Suisse in London.

China equity market to overtake the UK and Japan in 2030
While the US will remain the largest equity market in 2030 with a capitalization of USD 98 trillion and a weight of 35 percent, China will overtake both the UK and Japan to become the second largest market with a $54 trillion capitalization and a weight of 19 percent. Cumulatively China has accounted for 40 percent ($639 billion) of the total emerging world equity capital markets deal value (initial public offerings and secondary public offerings) since 2000.
Over the next 17 years, China’s share will increase to 60 percent or $3.6 trillion, representing a 5.5 fold nominal increase.
The forecast is based on the assumption that China’s capital account liberalizes over the next 17 years, giving foreign investors access to the A-share market.
Similarly, Credit Suisse also forecasts China’s dominance of corporate bond market deal value in Emerging Markets over the last 14 years (a 37 percent share or $1.6 trillion of the total) will persist, eventually taking a 53 percent share (or $18.4 trillion) of total Emerging Market primary activity by 2030.
China will also represent the largest growth in corporate bond market value by 2030. Total issuance originating from China is projected to increase by nearly tenfold from $3 trillion in 2014 to $32 trillion by 2030, consistent with large-scale disintermediation by Chinese banks of state-owned enterprise and local government assets.

Emerging Markets to capture bigger share of underwriting fees
Credit Suisse also forecasts emerging countries not only will generate more underwriting fees, but will also capture a bigger share of the pie over the next 17 years. According to the report, total capital markets underwriting fees globally for the period from 2014 to 2030 will reach $638 billion in nominal terms, compared to the $307 billion in fees earned in the period 2000 to 2014. Of the fee pool, 40 percent or $256 billion is expected to be generated from Emerging Markets, versus a far smaller share of 16 percent (or $49 billion) since 2000.
The division of fees between equity and debt capital markets until 2030 will also be much more balanced (49 percent/51 percent, respectively), in comparison to a 67-33 percent split as recorded from 2000 to 2013.
The wallet share of equity and debt capital market fees captured by Emerging Market local brokers will also rise from 45 percent ($22 billion) from 2000 to 2013 to 58 percent ($149 billion) between 2014 and 2030E.

KSA to grow as 7th largest emerging market by 2030 | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

KSA to grow as 7th largest emerging market by 2030

Credit Suisse forecasts Saudi Arabia to emerge as the seventh largest emerging capital market by the year 2030 (with the equity market growing to be the sixth largest emerging market from the current 10th position).
According to Credit Suisse estimates cited in a new report, Saudi Arabia would account for the second largest share of emerging ECM deal fees ($5.5 billion) over the next 17 years.
As a market with high retail ownership and a strong equity culture among high net worth individuals, secondary activity in equities should also prove to be a significant source of revenue, with average daily traded value expected to grow from $1.8 billion currently to $16.4 billion by 2030E.
The high forecast growth rate observed for Saudi Arabia would be consistent with a potential liberalization of the country’s markets, when the Saudi Capital Markets Authority proceeds with a reform package opening its bourse to direct foreign participation, thus creating significant additional external demand for Saudi assets.
Driven by accelerating growth in capital raising activities over the next one-and-a-half decades, emerging nation capital markets are expected to capture a more proportionate share of the global capital market universe relative to their economies, closing the gap with their developed peers, according to the Credit Suisse Research Institute’s “Emerging Capital Markets: The Road to 2030” report.
Despite rapid growth in capital-raising over the past two decades, emerging country capital markets remain underdeveloped relative to the size of their economies.
With a 39 percent share of global output – or 51 percent based on purchasing power parity, the 20 emerging nations currently only represent less than half of their fair share of the global capital market universe — accounting for only 22 percent of global equity market capitalization, and a 14 percent of the global corporate and sovereign bond markets.
The Credit Suisse Research Institute, however, forecasts that by 2030, Emerging Market share of global equity market capitalization will increase to 39 percent, while for corporate bonds and sovereign bonds to 36 percent and 27 percent respectively, around double their current market share.
“The disparity between developed and emerging nations in the global capital market universe will close by 2030. This should be driven by a disproportionately large contribution from emerging market equity and corporate bond supply and demand driven by growth in domestic mutual, pension and insurance funds, given the relatively high savings ratios prevalent among emerging economies. Moreover, the growing ability of Emerging Market corporates to access local currency capital markets shields them from the risk of exposure to unforeseen exchange-rate volatility,” says Stefano Natella, global head of equity research, Investment Banking, at Credit Suisse in New York.
Credit Suisse forecasts that the fastest 17-year nominal US dollar compound annual growth rate in market value of any asset class will be Emerging Market equities and corporate bonds at 13 percent, followed by Emerging Market sovereign bonds at 8 percent, doubling the growth pace of their developed peers.
Credit Suisse is forecasting growth in developed market equities, corporate and sovereign bonds to slow down at a pace of 7 percent, 5 percent and 3 percent, respectively. Consequently, the market value for emerging equities, corporate and sovereign bonds increases by $98 trillion, $47 trillion and $17 trillion, respectively, in nominal dollar terms between 2014 and 2030E, versus gains of $125 trillion, $52 trillion and $24 trillion, respectively, for these asset classes in the developed world.
“In this study, we extrapolate established historical patterns of growth in emerging and developed capital markets to assist in projecting their absolute and relative dimension and composition of market value by the year 2030. We find a strong relationship between the historical expansion of developed nation aggregate equity and corporate bond market value relative to GDP and gains in economic productivity. Thus, we used long-term projections of per capita GDP to make forecasts for both emerging and developed market equity and fixed income issuance over the 17 years to 2030,” explains Alexander Redman, Global Emerging Markets Equity Strategist, Investment Banking at Credit Suisse in London.

China equity market to overtake the UK and Japan in 2030
While the US will remain the largest equity market in 2030 with a capitalization of USD 98 trillion and a weight of 35 percent, China will overtake both the UK and Japan to become the second largest market with a $54 trillion capitalization and a weight of 19 percent. Cumulatively China has accounted for 40 percent ($639 billion) of the total emerging world equity capital markets deal value (initial public offerings and secondary public offerings) since 2000.
Over the next 17 years, China’s share will increase to 60 percent or $3.6 trillion, representing a 5.5 fold nominal increase.
The forecast is based on the assumption that China’s capital account liberalizes over the next 17 years, giving foreign investors access to the A-share market.
Similarly, Credit Suisse also forecasts China’s dominance of corporate bond market deal value in Emerging Markets over the last 14 years (a 37 percent share or $1.6 trillion of the total) will persist, eventually taking a 53 percent share (or $18.4 trillion) of total Emerging Market primary activity by 2030.
China will also represent the largest growth in corporate bond market value by 2030. Total issuance originating from China is projected to increase by nearly tenfold from $3 trillion in 2014 to $32 trillion by 2030, consistent with large-scale disintermediation by Chinese banks of state-owned enterprise and local government assets.

Emerging Markets to capture bigger share of underwriting fees
Credit Suisse also forecasts emerging countries not only will generate more underwriting fees, but will also capture a bigger share of the pie over the next 17 years. According to the report, total capital markets underwriting fees globally for the period from 2014 to 2030 will reach $638 billion in nominal terms, compared to the $307 billion in fees earned in the period 2000 to 2014. Of the fee pool, 40 percent or $256 billion is expected to be generated from Emerging Markets, versus a far smaller share of 16 percent (or $49 billion) since 2000.
The division of fees between equity and debt capital markets until 2030 will also be much more balanced (49 percent/51 percent, respectively), in comparison to a 67-33 percent split as recorded from 2000 to 2013.
The wallet share of equity and debt capital market fees captured by Emerging Market local brokers will also rise from 45 percent ($22 billion) from 2000 to 2013 to 58 percent ($149 billion) between 2014 and 2030E.

KSA to grow as 7th largest emerging market by 2030 | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Excellent news. I predict a huge influx of investors once this below kickstarts for real. This will have unprecedented consequences for the economy of KSA. In a mostly positive way mind you!

Saudi Arabia to open $530 billion bourse to foreigners in early 2015​

BY ANGUS MCDOWALL AND ANDREW TORCHIA

RIYADH/DUBAI Tue Jul 22, 2014 9:18am EDT

(Reuters) - Saudi Arabia plans to open its stock market, the Arab world's biggest, to direct investment by foreign financial institutions in the first half of next year, the market regulator said on Tuesday.

The opening of the Saudi market, capitalized at about $530 billion, is one of the most keenly awaited economic reforms in the largest oil exporting nation. The bourse would be one of the world's last major exchanges to begin welcoming foreign money.

"The market will be open to eligible foreign financial institutions to invest in listed shares during the first half of 2015, with God's permission," the Capital Market Authority said in a statement.

Saudi authorities want to open the stock market to create jobs, diversify the economy beyond oil and expose local firms to more market discipline. They have been preparing the reform for years and have completed most technical preparations.

But the government has delayed implementing the reform, apparently concerned about causing volatility in the market as well as the political sensitivity of allowing foreigners to build large stakes in top Saudi companies.

Currently, foreigners other than citizens of nearby Gulf states are limited to buying Saudi stocks via swaps involving international banks and through a small number of exchange-traded funds, which are expensive and inconvenient options.

Foreigners are at present believed to own no more than about 5 percent of the Saudi market, and to account for a smaller fraction of stock trading turnover.

Potential foreign interest in Saudi stocks is huge, because of the country's strong economy - the International Monetary Fund on Monday raised its forecast for Saudi growth this year to 4.6 percent - and the presence of some of the region's top blue-chip firms.

These include Saudi Basic Industries Corp (SABIC) 2010.SE, one of the world's largest petrochemicals groups, and National Commercial Bank IPO-NACO.SE, the kingdom's biggest lender, which plans an initial public offer of shares later this year that could be worth $4 billion to $5 billion.

"This is a massive move for Saudi and for the region," said Rami Sidani, head of Middle East investments at Schroders, a top European fund manager, which already has about $250 million invested in Saudi Arabia through indirect means.

He added that the country "will definitely attract massive inflows".

The Saudi market index .TASI jumped 2.8 percent to a six-year high on Tuesday in response to the news, bringing its gains so far this year to 17 percent. SABIC rocketed 6.9 percent.

Foreign investors are estimated to own about 15 percent of other, much smaller stock markets in the Gulf such as Dubai. If foreigners raise their ownership of Saudi Arabia to that level, it could mean an inflow of some $50 billion into the country.

REGULATIONS

In practice, Saudi authorities are expected to use a tight regulatory framework to ensure that inflows are slow. The CMA said it would publish next month draft regulations for the reform; there would then be a 90-day public consultation period.

Proposals circulated by Saudi authorities to the financial industry in the past have indicated Saudi Arabia will follow a model similar to China, Taiwan and some other major emergingmarkets in opening its bourse.

Qualified foreign investors, awarded licenses based on factors such as the amount of their assets under management, would be given quotas for their investment in the market, while there would be ceilings for foreign ownership of companies.

Under one set of proposals, foreign institutions would need to have at least $5 billion of assets under management globally to obtain licenses; each institution could own no more than 5 percent of a Saudi firm, and all foreigners combined could own no more than 20 percent.

A senior Saudi banker, declining to be named because of the sensitivity of the issue, said he expected only a "handful" - perhaps 10 - investment licenses to be awarded initially, and that authorities would then grant more licenses gradually as they monitored the impact on the market.

Most cash-rich Saudi companies do not need foreign money; the main benefit to them, authorities believe, is that they would gain activist foreign shareholders who could provide management guidance and help to internationalize the firms.

Because it is closed to direct foreign investment, the Saudi market has been excluded from major international equity indexes compiled by companies such as MSCI, even as Qatar and the United Arab Emirates were upgraded earlier this year.

Opening the Saudi bourse would be expected to lead eventually to its inclusion in such indexes, helping to make the Gulf a mainstream destination for international investors. Sidani estimated Saudi Arabia could ultimately account for around 3 to 5 percent of MSCI's emerging market index.

"This is a potential game changer for the region – a very important milestone that people have been waiting for," said Salah Shamma, co-head of regional equities at U.S. fund management giant Franklin Templeton.

MSCI said on Tuesday that it might make a decision as early as June 2015 on whether to add Saudi Arabia to its emerging market stock index. The pace of past index changes suggests actual inclusion might then take place in 2016.

Following regulatory reforms in the past couple of years, the Saudi market is one of the most stable and tightly regulated in the Middle East, fund managers say. It has avoided the wild swings seen in recent months in markets such as Dubai.

(Additional reporting by Nadia Saleem, David French an Yara Bayoumy in Dubai andCarolyn Cohn in London; Editing by William Maclean and Anna Willard)

Saudi Arabia to open $530 billion bourse to foreigners in early 2015| Reuters

@Arabian Legend @JUBA @Yzd Khalifa @Full Moon @Hadbani @BLACKEAGLE @ebray @Halimi @Wahhab2701 etc.

THIS IS NEWS OF GREAT AND POTENTIALLY HUGE SIGNIFICANCE!



Get in!​

One has to be the world's biggest pessimist to think that further good times are not ahead.

Somehow I can't stop thinking what would have happened with another ruling family and much earlier investments. I think that we would be better off than even Qatar. But those are just guesses obviously and Qatar is a very small country so a bad comparison.

In any case I am hopeful also considering all the huge investments in education, all the dozens of giant industrial cities (some of the biggest of their kind in the world), all the investments in different sectors, reforms and planned reforms, all the thousands upon thousands of students who are studying abroad at the best universities across the world and hopefully a lot of them will return home one day, one of the youngest populations in the world, enormous potential, investments in tourism (KSA is already the 15th most visited country in the world) and imagine for a second what it could become if a real tourism sector was developed aside from the hajj, umrah etc.

I simply think that some of the conservatives who do not want to see all those changes need to change their opinion but their generation/kind is dying out for good and bad anyway.

I personally want to see a healthy balance between religion, culture, traditions and changes that shape ALL people in our modern and global world. More direct participation by the populace too. I think that the development is heading in the right direction. Slowly but steadily which is a good thing if you ask me.

Not everything is perfect (far from it) but the most important thing is that there is a will to improve on all fronts and you can't really ask for more at least at this stage that the country is in.

@Arabian Legend @JUBA @Bubblegum Crisis @Yzd Khalifa @Full Moon @Hadbani @Tihamah @BLACKEAGLE @Awadd @Altamimi @Rakan.SA @Halimi @ebray etc.

Opinions please brothers. What do you expect, what do you want to see changed and how do you predict the future? What needs urgent change? Let us have an interesting discussion.

Big questions I know but it would be interesting to hear some of the opinions. After all this is a forum.

 

[Bubblegum Crisis]

The only and main major problem to KSA is this one :

I simply think that some (All) of the conservatives ... do not want to see all those changes

Because, it's monkeys :

But as you say so :

… but their generation/kind is dying out for good and bad anyway.

Game over.

...

 

[al-Hasani]

The only and main major problem to KSA is this one :




Because, it's monkeys :

But as you say so :





Game over.

...

I politely disagree. Saudi Arabians and Arabs overall are by nature conservative as they put great pride in their religion, traditions, customs, history etc. I would be labelled as a conservative in most places in the world yet in KSA I would be labelled as not fully conservative by SOME circles in the country. There is nothing wrong with having conservative values. The problem is when you fight inevitable changes that will only harm your country and people. Therein lies the main problem my dear brother.

Anyway I am sure that you know what kind of people that I am referring to here.

 

[Bubblegum Crisis]

I politely disagree. Saudi Arabians and Arabs overall are by nature conservative as they put great pride in their religion, traditions, customs, history etc. I would be labelled as a conservative in most places in the world yet in KSA I would be labelled as not fully conservative by SOME circles in the country. There is nothing wrong with having conservative values. The problem is when you fight inevitable changes that will only harm your country and people. Therein lies the main problem my dear brother.

Anyway I am sure that you know what kind of people that I am referring to here.

There is nothing linked to our religion (Islam). Our religion isn't like this and has never been like this. This is because these people are people from another time with a very bad mentality. Their behavior is depraved. Our religion is beautiful, perfect, tolerant and humanist. These people are the darkest part of our community, just like people during the Inquisition Period in Spain. They've been leading us to our destruction and to the chaos since the 14th century. Thank God, he is pushing away all these people.


...

 

[al-Hasani]

There is nothing linked to our religion (Islam). Our religion isn't like this and has never been like this. This is because these people are people from another time with a very bad mentality. Their behavior is depraved. Our religion is beautiful, perfect, tolerant and humanist. These people are the darkest part of our community, just like people during the Inquisition Period in Spain. They've been leading us to our destruction and to the chaos since the 14th century. Thank God, he is pushing away all these people.


...

We should be very cautious NOT to equal your ordinary conservative person in KSA, the Arab world, Muslim world or world overall with violent terrorists that make a mockery out of Islam let alone humanity. Anyway we agree on this front.

I mean it would be very unfair to compare your average conservative Saudi Arabian with those murderers.

 

[Bubblegum Crisis]

We should be very cautious NOT to equal your ordinary conservative person in KSA, the Arab world, Muslim world or world overall with violent terrorists that make a mockery out of Islam let alone humanity. Anyway we agree on this front.

I mean it would be very unfair to compare your average conservative Saudi Arabian with those murderers.

You are too complacent !

The perfect example of the mentality of these people the lost souls dark in all the Arab world :

Kingdom of Heaven (2005)

Conversation between ‘Saladin and conservative priests’.

See 101 : 37 to 103 : 40

Link : Kingdom of Heaven (2005) [English with French Captions] смотреть онлайн в хорошем качестве


...

 

[al-Hasani]

You are too complacent !

The perfect example of the mentality of these people the lost souls dark in all the Arab world :

Kingdom of Heaven (2005)

Conversation between ‘Saladin and conservative priests’.

See 101 : 37 to 103 : 40

Link : Kingdom of Heaven (2005) [English with French Captions] смотреть онлайн в хорошем качестве


...

I am a conservative.

 

[Bubblegum Crisis]

I am a conservative.

This is like them (In video) so forget me.

Kingdom of Heaven (2005)

Conversation between ‘Saladin and conservative priests’.

See 101 : 37 to 103 : 40

Link : Kingdom of Heaven (2005) [English with French Captions] смотреть онлайн в хорошем качестве


...

 

[al-Hasani]

Record: KSA bank deposits hit SR1.5 trillion in June

​

RIYADH: SHARIF M. TAHA

Published — Monday 4 August 2014

Last update 3 August 2014 10:59 pm

Deposits in Saudi banks hit a record level of nearly SR1.5 trillion by the end of June, or an increase of 744 percent compared to figures of 1992 which stood at SR177 billion, according to a financial report.
The Saudi banks pay no interest on SR939 billion, or nearly 63 percent of total deposits, which are categorized as demand deposits, said the report, compiled and analyzed by Al-Eqtisadiyah daily.
Deposits in Saudi banks are grouped into three major types: demand deposits, time (saving) deposits and semi-cash deposits, the report said.
The volume of demand deposits in the Saudi banks stood at SR939.1 billion by the end of June, of which SR880.4 billion were owned by individuals and companies, or 94 percent, while the remaining SR58.6 billion, or 6 percent, were owned by government agencies, the report said.
Time (saving) deposits accounted for 24 percent of total deposits in the Saudi banks at the value of SR360.2 billion, of which SR176.5 billion and SR183.7 billion were owned by individuals/companies and government agencies, respectively, the report said.
The third type of deposits, which are termed quasi-cash deposits, are composed of deposits in hard currencies made by residents, deposits for letter of credits, outstanding remittances, and repo (sale and repurchase) transactions carried out by the banks with the private sector firms.
This type of deposits accounted for 13 percent of total deposits in the Saudi banks at the value of SR196.2 billion by the end of June, according to the report.
In the last 23 years (1992-2014), deposits in the Saudi banks continued to grow steadily to hit the record of SR1495.5bn in June, 2014, compared to SR1495.4 billion in May of the same year.
Year-on-year basis, deposits grew by 13 percent in June (2014) by SR168 billion compared to figures of June, 2013, which stood at SR1327.5billion, the report said.
The huge deposits have reportedly helped the Saudi banks to increase their lending capacity and, eventually, led them to achieve record profits year after year reaching some SR 38bn by the end of last year.
Additionally, the Saudi banks achieved profits of nearly SR 21.7bn in the first half of the current year (2014) and, even, poised to achieve new record profits that may exceed SR 42bn by the end of the year, the report said.

Record: KSA bank deposits hit SR1.5 trillion in June | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Insane numbers.​

 

[al-Hasani]

Foreign buying in Saudi stocks jumps on direct investment approval

​

DUBAI Sun Aug 3, 2014 11:44am EDT

Aug 3 (Reuters) - The value of shares bought by foreign investors through swap arrangements on the Saudi stock exchange jumped in July, official statistics showed on Sunday.

Authorities in the kingdom granted long-awaited approval on July 21 to open up the bourse to direct foreign investment for the first time in early 2015.

Foreigners currently can only purchase shares through swap arrangements, contracts in which a local broker or investor owns the stock on the foreign party's behalf and passes on cash flows from changes in stock price and dividends.

These contracts have attracted limited volumes because of their cumbersome structure and higher cost compared to direct ownership.

However, in July the value of shares brought by foreigners through swap agreements increased to 3.53 billion riyals ($941 million), according to bourse data published on Sunday, from 1.66 billion riyals in June.

The rise is despite the total value of shares traded on the entire exchange dropping 31.8 percent month-on-month to 122.75 billion riyals.

"People want to get in until the time direct foreign ownership actually happens, because then the prices may not be that attractive any more," said Farooq Waheed, senior portfolio manager at Riyad Capital.

"The local reaction is very positive, especially on large-cap stocks that are likely to be interesting for foreign investors."

Saudi's stock market, or Tadawul, has risen 5.7 percent since the direct foreign ownership announcement - although there have been only four days of trading because of the week-long Eid holiday during the last week of July.

Saudi Basic Industries Corp, the largest stock in the Middle East by market capitalisation, has jumped 11.7 percent in that period. ($1 = 3.7504 Saudi Riyals) (Reporting by David French and Nadia Saleem; editing by Keiron Henderson)

​

Foreign buying in Saudi stocks jumps on direct investment approval| Reuters

Why this was not done much earlier I do not know but better late than never I guess. As I said and every other analyst predicated and the developments have clearly shown so far then this will have unparalleled positive consequences for the already impressive and vastly improving and diversifying Saudi Arabian economy.

 

[al-Hasani]

Saudi Arabian funds abroad cross SR385 billion

Saudi Arabia riyals. (Reuters)​

JEDDAH: P.K. ABDUL GHAFOUR

Published — Wednesday 6 August 2014

Last update 6 August 2014 5:09 pm

Financial assets belonging to independent Saudi organizations, including the Saudi Arabian Monetary Agency (SAMA) and Public Investment Fund (PIF), in foreign countries amounted to SR385.3 billion, comprising 63 percent of their total assets.
“These organizations have invested SR335.1 billion, or 55 percent of their total assets in foreign stock markets and bonds,” said an analytical report, adding that they deposited SR50.2 billion, or eight percent of their funds, in foreign banks.
The report indicated that the total assets of these organizations rose to SR608.3 billion by the end of June 2014, showing an increase of one percent, or SR4 billion, compared to May 2014, when the amount was SR604.2 billion.
Economist Ehsan Buhulaiga told Arab News that a number of independent Saudi organizations, including SAMA and PIF, invest their money in foreign countries, especially in stocks and bonds to make good profits.
“They publish their annual reports. There is nothing surprising,” he said.
The amount declined by SR6 billion compared to the assets of SR614.3 billion in June 2013 and reduced by SR21.4 billion compared to their assets of SR629.8 billion at the end of 2013.
The report indicated that most of these organizations prefer to deposit their funds in foreign banks. They deposited SR50.2 billion, or 99.6 percent, in foreign banks, with local banks receiving only SR211 million. It is believed that they preferred foreign banks because of high interest rates compared with local banks. These organizations had no deposits in local banks in 2010, 2011 and 2012, the report said.

Saudi funds abroad cross SR385 billion | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

 

[al-Hasani]

Agriculture sector advances 1.3%

​

JEDDAH: ARAB NEWS

Published — Thursday 21 August 2014

Last update 20 August 2014 10:34 pm

The Saudi stock market continued its positive movement and managed a fourth straight rise on Wednesday, accumulating more than 56 points.
The Tadawul All-Share Index (TASI) set out with 5.6 points fall but subsequent trading sent it higher to close at 10,716.24 points, adding 0.53 percent for the entire day.
Large cap remained prominent, posting a growth of 0.8 percent. Ten out of Tadawul's 15 sectors closed the day up, reflecting a collection of 670 points. Agriculture & Food Industries made the biggest jump, posting a reasonable growth of 1.3 percent to 12,788.05.
Banks & Financial Services sector followed it, advancing more than one percent. Most of heavyweights extended gains, where Riyad Bank surging by 4.31 percent and Saudi British Bank 3.46 percent.
On the worst side, Insurance sector logged the largest losses, falling more than one percent to close at 1,476.33.
Advancing stocks outnumbered decliners by a margin of 75 to 65 and the prices of 22 companies remained unchanged.
Al-Jouf Agriculture Development Co. (+9.31 percent) and Filing and Packing Materials Manufacturing Co. (+6.17 percent) showing notable gains became the top performers among all Saudi stocks.
FIPCO appeared to be the most liquid stock for the day, pumping SR720 million into the market. Qassim Agriculture Co. topped the volume chart and liquidated 27.6 million shares but finished to the downside. Interestingly, the company volume went 19.6 times high over its 50-day average.
Share trading activity remained high as compared to previous day; turnover went up by 10 percent on volume basis and 11 percent in terms of liquidity.
More than 284 million shares worth SR10.8 billion were liquidated at Tadawul.

Agriculture sector advances 1.3% | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Egypt picks Saudi consultancy to draft Suez plan

NEW STRATEGY: Egypt’s Prime Minister Ibrahim Mahlab and Suez Canal Authority chief Mohab Memish attend a news conference in Ismailia. (Reuters)
​

AGENCIES

Published — Wednesday 20 August 2014

Last update 19 August 2014 11:20 pm

CAIRO: Egypt has selected a Saudi consultancy to draw up the plan for the government's mega project to transform the Suez Canal waterway into a hub of international investment and free trade zones.
Suez Canal Authority chief Moheeb Mamish announced in Cairo that Dar Al-Handasah Shair — a leading Mideast design, architecture and engineering consultancy — was chosen among 14 candidates.
Egypt announced it had chosen a consortium that includes the Egyptian army and Dar Al-Handasah Shair and Partners to develop the industrial and logistics hub in the Suez Canal area.
The Suez Canal is the fastest shipping route between Europe and Asia and brings in around $5 billion in revenues per year, a vital source of hard currency for Egypt which has struggled since a 2011 uprising deterred tourists and foreign investors.
In January, Egypt invited 14 consortia to bid for the development of 76,000 square kilometers around the canal, a project that was first floated several years ago but never taken further.
Mohab Memish made the announcement at a news conference in Ismailia, a city on the banks of the canal in north west Egypt.
The event was attended by Prime Minister Ibrahim Mahlab.
"The winning consortium to create the master plan for the Suez Canal area development project is the consortium of Dar Al-Handasah Shair and Partners, which is registered in Bahrain, in alliance with Dar Al-Handasah Egypt," Memish said.
The Egyptian army is a local partner in Dar Al-Handasah Egypt through the Armed Forces Engineering Authority, a government source told Reuters previously.
Egyptian President and former army chief Abdel Fattah El-Sissi has said he would not hesitate to award major projects that would help revive Egypt's economy to the army.
The project is separate from another mega project for the Suez Canal, unveiled by the president recently and which involves the expansion of waterway.
In that project, the Egyptian military and local companies would dig out a new, 35km segment of the waterway.

Egypt picks Saudi consultancy to draft Suez plan | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Good news. I wonder if there is any news about the Saudi Arabia-Egypt causeway/bridge? Seems like the uncertain conditions in Egypt have halted the project.

@Frogman @Mahmoud_EGY @agentny17 @Dino R.

http://en.wikipedia.org/wiki/Saudi–Egypt_Causeway

 

[Mahmoud_EGY]

Agriculture sector advances 1.3%

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JEDDAH: ARAB NEWS

Published — Thursday 21 August 2014

Last update 20 August 2014 10:34 pm

The Saudi stock market continued its positive movement and managed a fourth straight rise on Wednesday, accumulating more than 56 points.
The Tadawul All-Share Index (TASI) set out with 5.6 points fall but subsequent trading sent it higher to close at 10,716.24 points, adding 0.53 percent for the entire day.
Large cap remained prominent, posting a growth of 0.8 percent. Ten out of Tadawul's 15 sectors closed the day up, reflecting a collection of 670 points. Agriculture & Food Industries made the biggest jump, posting a reasonable growth of 1.3 percent to 12,788.05.
Banks & Financial Services sector followed it, advancing more than one percent. Most of heavyweights extended gains, where Riyad Bank surging by 4.31 percent and Saudi British Bank 3.46 percent.
On the worst side, Insurance sector logged the largest losses, falling more than one percent to close at 1,476.33.
Advancing stocks outnumbered decliners by a margin of 75 to 65 and the prices of 22 companies remained unchanged.
Al-Jouf Agriculture Development Co. (+9.31 percent) and Filing and Packing Materials Manufacturing Co. (+6.17 percent) showing notable gains became the top performers among all Saudi stocks.
FIPCO appeared to be the most liquid stock for the day, pumping SR720 million into the market. Qassim Agriculture Co. topped the volume chart and liquidated 27.6 million shares but finished to the downside. Interestingly, the company volume went 19.6 times high over its 50-day average.
Share trading activity remained high as compared to previous day; turnover went up by 10 percent on volume basis and 11 percent in terms of liquidity.
More than 284 million shares worth SR10.8 billion were liquidated at Tadawul.

Agriculture sector advances 1.3% | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Egypt picks Saudi consultancy to draft Suez plan

NEW STRATEGY: Egypt’s Prime Minister Ibrahim Mahlab and Suez Canal Authority chief Mohab Memish attend a news conference in Ismailia. (Reuters)
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AGENCIES

Published — Wednesday 20 August 2014

Last update 19 August 2014 11:20 pm

CAIRO: Egypt has selected a Saudi consultancy to draw up the plan for the government's mega project to transform the Suez Canal waterway into a hub of international investment and free trade zones.
Suez Canal Authority chief Moheeb Mamish announced in Cairo that Dar Al-Handasah Shair — a leading Mideast design, architecture and engineering consultancy — was chosen among 14 candidates.
Egypt announced it had chosen a consortium that includes the Egyptian army and Dar Al-Handasah Shair and Partners to develop the industrial and logistics hub in the Suez Canal area.
The Suez Canal is the fastest shipping route between Europe and Asia and brings in around $5 billion in revenues per year, a vital source of hard currency for Egypt which has struggled since a 2011 uprising deterred tourists and foreign investors.
In January, Egypt invited 14 consortia to bid for the development of 76,000 square kilometers around the canal, a project that was first floated several years ago but never taken further.
Mohab Memish made the announcement at a news conference in Ismailia, a city on the banks of the canal in north west Egypt.
The event was attended by Prime Minister Ibrahim Mahlab.
"The winning consortium to create the master plan for the Suez Canal area development project is the consortium of Dar Al-Handasah Shair and Partners, which is registered in Bahrain, in alliance with Dar Al-Handasah Egypt," Memish said.
The Egyptian army is a local partner in Dar Al-Handasah Egypt through the Armed Forces Engineering Authority, a government source told Reuters previously.
Egyptian President and former army chief Abdel Fattah El-Sissi has said he would not hesitate to award major projects that would help revive Egypt's economy to the army.
The project is separate from another mega project for the Suez Canal, unveiled by the president recently and which involves the expansion of waterway.
In that project, the Egyptian military and local companies would dig out a new, 35km segment of the waterway.

Egypt picks Saudi consultancy to draft Suez plan | Arab News — Saudi Arabia News, Middle East News, Opinion, Economy and more.

Good news. I wonder if there is any news about the Saudi Arabia-Egypt causeway/bridge? Seems like the uncertain conditions in Egypt have halted the project.

@Frogman @Mahmoud_EGY @agentny17 @Dino R.

http://en.wikipedia.org/wiki/Saudi–Egypt_Causeway

i dont know why or if the project is halted i am sure it is just a matter of time until we see it started