Oil Updates – crude gains on fears of wider Middle East conflict after rocket strike in Golan Heights
Oil Updates – crude gains on fears of wider Middle East conflict after rocket strike in Golan Heights/node/2558451/business-economy
Oil Updates – crude gains on fears of wider Middle East conflict after rocket strike in Golan Heights
Photos of the children and teens killed in a rocket strike at a soccer field, are displayed at a roundabout as people light candles in their memories, at the village of Majdal Shams, in the Israeli-annexed Golan Heights, on July 28, 2024. (AP)
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Updated 30 July 2024
Reuters
Oil Updates – crude gains on fears of wider Middle East conflict after rocket strike in Golan Heights
Israel has vowed retaliation against Hezbollah in Lebanon, and Israeli jets hit targets in southern Lebanon on Sunday
The Iran-backed Hezbollah militia denied any role in the rocket strike, which hit a Druze village in Israel-occupied Golan
Updated 30 July 2024
Reuters
SINGAPORE: Oil prices rose on Monday, paring last week’s loss, on fears of a widening conflict in the Middle East following a rocket strike in the Israeli-occupied Golan Heights, which Israel and the US blamed on Lebanese armed group Hezbollah.
Brent crude futures gained 40 cents, or 0.5 percent, to $81.53 a barrel at 8:50 a.m. Saudi time. US West Texas Intermediate crude futures climbed 34 cents, or 0.4 percent, to $77.50 a barrel.
Last week, Brent lost 1.8 percent while WTI fell 3.7 percent on sagging Chinese demand and hopes of a Gaza ceasefire agreement.
On Sunday, Israel’s security cabinet authorized Prime Minister Benjamin Netanyahu’s government to decide on the “manner and timing” of a response to the Saturday’s rocket strike in the Golan Heights that killed 12 teenagers and children.
Iran-backed Hezbollah denied responsibility for the attack, the deadliest in Israel or Israeli-annexed territory since Palestinian militant group Hamas’ Oct. 7 assault sparked the war in Gaza. That conflict has spread to several fronts and risks spilling into a wider regional conflict.
Israel has vowed retaliation against Hezbollah in Lebanon, and Israeli jets hit targets in southern Lebanon on Sunday.
“Worries over escalating tensions in the Middle East prompted fresh buying, but gains were limited by lingering concerns of weakening demand in China,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Over the past few weeks, hopes of a ceasefire in Gaza have been gaining momentum.
But Israel wants changes in a plan for a Gaza truce and the release of hostages by Hamas, complicating a deal to halt nine months of combat that have devastated the enclave, according to a Western official, a Palestinian and two Egyptian sources.
On the demand side, data released earlier this month showing that China’s total fuel oil imports dropped 11 percent in the first half of 2024 have raised concern about the wider demand outlook in the Asian giant, the world’s biggest crude importer.
“Demand concerns remain a key factor that presses on crude oil prices. The economic growth slowed in China in the second quarter, while domestic consumer demand was sluggish,” said independent market analyst Tina Teng.
She added that the US Federal Reserve’s rate decision and China’s manufacturing PMI are the next key events for markets as they try to gauge the oil market trajectory.
Meanwhile, US energy firms last week added oil and natural gas rigs for a second week in a row, boosting the monthly count by the most since November 2022, energy services firm Baker Hughes said in its closely followed report on Friday.
Markets are also keeping a watch on oil producer Venezuela, after the country’s electoral authority said President Nicolas Maduro had won a third term with 51 percent of the vote despite multiple exit polls pointing to an opposition win.
US Secretary of State Antony Blinken said the US has serious concerns that the results do not reflect the votes of the people.
The US had previously said it would “calibrate” its sanctions policy toward Venezuela depending on how the high-stakes election unfolds in the OPEC nation.
Closing Bell: TASI declines 0.38% to close at 11,121
Updated 01 July 2025
Nadin Hassan
RIYADH: ’s Tadawul All Share Index declined 42.36 points, or 0.38 percent, to close at 11,121.60 on Tuesday.
Total trading turnover reached SR5.57 billion ($1.48 billion), with 110 stocks posting gains and 141 declining.
The Kingdom’s parallel market Nomu also recorded a decrease, losing 92.51 points, or 0.35 percent, to settle at 27,245.12, as 33 stocks advanced and 43 retreated.
The MSCI Tadawul 30 Index declined by 8.26 points, or 0.58 percent, to finish at 1,420.6.
Rabigh Refining and Petrochemical Co. was the best-performing stock of the session, with its share price rising 9.97 percent to SR7.94. Fawaz Abdulaziz Alhokair Co. followed with a 7.96 percent increase to SR26.58.
Other gainers included Saudi Printing and Packaging Co., which rose to a fresh year high on Tuesday, closing at SR13.19 with a 7.41 percent gain.
On the losing side, Alandalus Property Co. saw the steepest decline, falling 2.82 percent to SR21.38. Tihama Advertising and Public Relations Co. dropped 2.76 percent to SR16.53, and Walaa Cooperative Insurance Co. declined 2.74 percent to SR28.52.
ACWA Power has secured shareholder approval to raise its share capital through a rights issue worth SR7.12 billion, the company announced following its extraordinary general assembly meeting.
The board’s recommendation to increase the capital through the issuance of new shares was ratified on June 30. This move aligns with the company’s previous disclosure, which detailed the number of new shares, the offer price, and the resulting increase in share capital.
According to the statement, eligible shareholders are those who own shares at the end of trading on the day of the general assembly and are listed in the company’s register with the Securities Depository Center by the close of the second trading day following the meeting.
The firm’s share price traded 2.36 percent lower to close at SR248, after opening at SR267.40.
Saudi Awwal Bank announced its intention to issue Saudi riyal-denominated Additional Tier 1 sukuk through a private placement as part of its capital-boosting strategy, the lender said in a bourse filing on Tuesday.
The sukuk will be offered under the bank’s established issuance program, with HSBC appointed as the sole arranger and dealer for the transaction and issuance process.
According to the statement, the exact value of the offering will be determined at a later stage, depending on prevailing market conditions at the time of issuance.
The bank stated that the planned issuance aims to strengthen its capital base in alignment with long-term strategic goals.
Saudi Awwal Bank’s share price closed 0.77 percent higher at SR33.90.
Riyad Bank announced that its subsidiary, Riyad Capital, has submitted applications to both the Capital Market Authority and the Saudi Exchange for a potential initial public offering, marking a significant step forward in the bank’s IPO preparations.
According to the statement posted on Tadawul, the application includes registering and offering a portion of Riyad Capital’s shares to the public, as well as listing them on the main market of Tadawul.
This development follows Riyad Bank’s earlier disclosure on April 4, in which it confirmed board approval to begin assessing and preparing for a potential listing of Riyad Capital.
The bank noted that the IPO remains contingent on obtaining necessary regulatory approvals and final endorsement by Riyad Bank, depending on market conditions and the best interests of its shareholders.
Riyad Bank’s share price closed 0.97 percent lower at SR28.46.
Most Gulf markets retreat ahead of vote on Trump’s tax bill
’s benchmark index dropped 0.4%
Dubai’s main share index eased 0.2%
Updated 01 July 2025
Reuters
LONDON: Most stock markets in the Gulf gave up early gains to close lower on Tuesday, as investors booked profits and turned cautious ahead of a US Senate vote on President Donald Trump’s landmark tax and spending bill.
The proposed legislation, which faces internal Republican opposition, is expected to add $3.3 trillion to the nation’s debt pile.
’s benchmark index dropped 0.4 percent, weighed by a 2.3 percent fall in n Mining Company.
Among other losers, Savola slipped 2.2 percent after announcing its CEO had stepped down by mutual agreement as part of a strategic overhaul.
Dubai’s main share index eased 0.2 percent, snapping a six-day rally after hitting a 17-year high earlier in the session, hit by a 0.7 percent fall in blue-chip developer Emaar Properties.
Meanwhile, Trump continued to pressure the US Federal Reserve, sending Chair Jerome Powell a list of global interest rates with handwritten commentary suggesting US rates should fall between Japan’s 0.5 percent and Denmark’s 1.75 percent.
In Abu Dhabi, the index finished 0.3 percent lower.
Oil prices were slightly higher as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting, as well as trade negotiations.
The Qatari index closed 0.5 percent lower, extending losses from the previous session when it ended a six-day winning streak, with all sectors in negative territory.
Qatar’s economy expanded 3.7 percent in the first quarter, up from 1.5 percent a year earlier, according to government data issued on Tuesday.
Outside the Gulf, Egypt’s blue-chip index lost 0.5 percent, with Beltone Financial Holding declining 6.7 percent.
Saudi debt markets set to expand further on Vision 2030 reforms: S&P
Kingdom’s domestic debt markets have grown steadily over past five years
Corporate issuance rose to 3.4% of GDP, up from 1.9% in 2020
Updated 01 July 2025
Nirmal Narayanan
RIYADH: ’s domestic corporate bond and sukuk markets are set to gain further momentum, fueled by Vision 2030 investments and ongoing regulatory reforms, according to a new analysis by S&P Global.
In its latest report, the ratings agency noted that the Kingdom’s domestic debt markets have grown steadily over the past five years, with corporate bonds and sukuk issuance more than doubling to $37 billion in the first quarter of 2025, up from $15.5 billion in the same period of 2020.
The findings come as leads the Gulf Cooperation Council in primary debt issuance. In the first quarter of 2025, the Kingdom accounted for over 60 percent of all GCC sukuk and bond activity, raising $31.01 billion through 41 offerings, according to Kuwait Financial Center, also known as Markaz.
Timucin Engin, credit analyst at S&P Global Ratings, said: “The development of ’s overall financial markets continues to accelerate due to large-scale Vision 2030 investments, regulatory reforms, initiatives to attract overseas funding, and investments in capital markets infrastructure over the past decade.”
He added: “The markets’ growth will help companies to diversify their funding bases and secure long-term capital.”
Tadawul was restructured into a holding group in 2021 to streamline operations and governance. File/AFP
In January, an analysis by S&P Global projected that global sukuk issuance would reach between $190 billion and $200 billion in 2025, driven by increased activity in key markets such as and Indonesia.
While the Kingdom’s domestic market has expanded, S&P noted that issuance remains concentrated, with Saudi financial institutions accounting for 65 percent of outstanding corporate debt as of May 25, followed by nonfinancial state-owned entities at 25 percent and private-sector non-financial corporates at 10 percent.
The report highlighted the role of the Saudi stock exchange, whose data show that total domestic sovereign and non-sovereign issuance stood at 20.7 percent of gross domestic product in the first quarter of 2025.
Corporate issuance alone rose to 3.4 percent of GDP, up from 1.9 percent in 2020, though still below levels seen in more mature emerging markets.
S&P Global also cautioned that the potential long-term structural growth of ’s domestic corporate bond market could be affected if geopolitical tensions in the region escalate.
“We also note that the sharp escalation of the Israel-Iran conflict creates high uncertainty for the markets and their outlook in the Middle East,” said the report.
It further noted that ’s equity markets have developed more rapidly than its debt markets, as the country’s robust banking system has historically provided competitive financing for non-financial corporates, thereby crowding out interest in debt capital markets.
Developing debt market
According to the report, a developed local debt market enables issuers to access different pools of capital with varied terms and conditions suited to their financing needs.
It also complements the equity market by providing financial solutions for local investment activities, thus supporting the broader economy.
Additionally, a local debt market attracts both domestic and foreign investors, creating a deeper and more diversified investor base that should enhance funding availability for issuers.
’s debt market is expected to surpass $500 billion in outstanding value by the end of 2025. Shutterstock
In April, Fitch Ratings reported that ’s debt capital market continued its upward trajectory in the first quarter of 2025 despite geopolitical tensions and economic headwinds.
According to Fitch, the market reached $465.8 billion by the end of March, marking a 16 percent year-on-year increase, with sukuk accounting for 60.4 percent of the total.
The Kingdom’s debt market is expected to surpass $500 billion in outstanding value by the end of 2025, supported by strong economic fundamentals, diversified funding strategies, and sustained progress under Vision 2030.
In December, Kamco Invest projected that will lead the GCC in bond maturities over the next five years, with around $168 billion in Saudi bonds expected to mature between 2025 and 2029 — highlighting the Kingdom’s growing role in the region’s debt landscape.
S&P Global, however, pointed out that liquidity and foreign participation remain limited in ’s financial markets.
“Saudi financial institutions are the main investors and tend to hold the securities until maturity, which explains the limited secondary trading activity,” said the report.
It added: “Despite some growth over the past few years, foreign investors, including investors from the Gulf Cooperation Council region accounted for less than 2 percent of the outstanding listed and unlisted issuance as of first-quarter 2025.”
Key initiatives
S&P Global also outlined major initiatives undertaken by Saudi authorities to drive capital market development.
In 2015, resumed issuing instruments denominated in Saudi riyals, marking a return to domestic debt markets. Two years later, the Ministry of Finance — through the National Debt Management Center — launched the riyal-denominated sukuk program.
In 2018, NDMC partnered with five local financial institutions as primary dealers to broaden the investor base and improve liquidity in government securities. More local dealers were added in 2021, followed by five international banks in 2022.
Most recently, NDMC raised SR2.355 billion ($628 million) through its June sukuk issuance. In May, the Kingdom raised SR4.08 billion via riyal-denominated offerings, a 9.09 percent increase from April and a 54.5 percent jump compared to March.
In parallel, the Financial Sector Development Program was launched in 2018 to advance the Kingdom’s financial markets, with a particular focus on debt capital markets.
Tadawul was restructured into a holding group in 2021 to streamline operations and governance. That same year, a partnership between Edaa and Euroclear enabled international investors to access the Saudi sukuk and bond markets, improving trading, clearing, and settlement processes.
S&P also noted continued efforts by Saudi authorities to enhance the regulatory environment, including the enactment of an updated investment law in 2024.
The law provides greater protections for investors, including guarantees on fair treatment, property rights, intellectual property safeguards, and the free movement of capital.
Madinah’s logistics sector grows 190% amid $57bn development push
Expansion reflects growing investor interest
It highlights effectiveness of region’s investment environment
Updated 01 July 2025
MOHAMMED AL-KINANI
JEDDAH: Commercial registrations in ’s Madinah transport and storage sector rose from 970 in 2019 to 2,817 by the end of 2024, reflecting strong five-year growth in the logistics industry.
The 190 percent growth over the period also translates to an average annual increase of 38 percent, according to a recent economic report issued by the Madinah Chamber of Commerce and Industry.
The analysis, also published by the Saudi Press Agency, emphasized that this expansion reflects growing investor interest and highlights the effectiveness of the region’s investment environment, as well as the local market’s capacity to accommodate increased activity in transport and storage.
It also further affirmed the sector’s pivotal role in supporting commercial, industrial, and tourism-related activities in the region.
Madinah’s emergence as a logistics hub is underpinned by a well-developed infrastructure network, including three airports, an extensive highway system linking five regions, the Haramain High-Speed Railway, and two key ports — one commercial and the other industrial. This strategic connectivity facilitated nearly $1.1 billion in non-oil exports and over SR5.25 billion ($1.40 billion) in imports in 2021.
Madinah recorded the second-highest growth rate in local demand at 11 percent, based on point-of-sale transactions, following Riyadh. File/SPA
The region’s broader economy has also shown significant momentum, with the hotel sector recording a 42 percent year-on-year increase in 2024, and tourism-related enterprises, such as organized travel and tour services, expanding by 33 percent.
“The sector’s accelerating activity coincides with the implementation of major development projects in Madinah, with a total estimated value exceeding SR213 billion,” SPA stated.
It added that these projects span multiple sectors, including infrastructure, urban expansion, and tourism services, as well as the Madinah humanization initiative, and transport and logistics, noting that these initiatives aim to streamline supply chain operations and enhance connectivity between development sites within and beyond the city.
The report further stated that the rise in commercial registrations also signals growing interest from investors and entrepreneurs in this field, which serves as a central link in production and distribution chains.
“It provides a favorable environment for the development of logistics services and the advancement of modern transport capabilities.” SPA report added.
The news agency concluded that these indicators confirm that the transport sector has become an integral component of Madinah’s economic structure, contributing to the integration of development projects and supporting stability and growth in the local market.
An earlier report by the region’s chamber on the first quarter of 2025, released in May, highlighted positive transformations in the area’s economy. The region’s gross domestic product reached SR57.6 billion in the third quarter of 2024, reflecting a 2.8 percent growth compared to the same quarter of the previous year.
Madinah also recorded the second-highest growth rate in local demand at 11 percent, based on point-of-sale transactions, following Riyadh.
The first quarter report revealed a drop in the region’s unemployment rate to 8.4 percent in the fourth quarter of 2024, down from 10.3 percent in the previous period, as employment rose to over 458,000, with economic activity concentrated in construction, trade, and manufacturing.
The study also revealed progress in major development projects across the Madinah region, with around 213 projects under implementation, valued at over SR210 billion.
“These include 188 private sector projects and 15 government projects. The total investment land area allocated for these projects exceeds 15 million sq. meters, with expectations of generating over 119,000 future job opportunities,” the release stated.
It added that the commercial sector accounted for the largest share of these projects, with 153 developments, followed by 27 mixed-use residential-commercial undertakings.
Other initiatives spanned the healthcare, education, tourism, and religious sectors.
unveils ESG-focused non-profit for industry, mining
Saudi businesses are increasingly embracing ESG principles to drive sustainable growth
Updated 01 July 2025
MOHAMMED AL-KINANI
JEDDAH: has launched a non-profit association to help industrial and mining enterprises adopt top sustainability, social responsibility, and governance standards, supporting the Kingdom’s economic growth.
The Ministry of Industry and Mineral Resources announced the establishment of the association to raise awareness among industrial and mining enterprises and support their adoption of sustainable and responsible business practices.
Saudi businesses are increasingly embracing environmental, social, and governance principles to drive sustainable growth, in alignment with Vision 2030 and the Kingdom’s target of achieving net-zero emissions by 2060, reinforcing its position as a regional leader in sustainability.
“The initiative also aims to increase the sector’s contributions and its direct impact on the gross domestic product of the national economy, in line with the objectives of Saudi Vision 2030,” the ministry said in a statement.
The press release noted that the undertaking is part of the ministry’s broader efforts to empower non-profit organizations in the industry and mining sectors, underscoring its belief in their role in advancing economic and social development in the Kingdom.
It added that the association will undertake specialized campaigns, implement guidance programs, and hold workshops focused on ESG indicators, and that the establishment aligns with the ministry’s efforts to strengthen the non-profit sector and enhance its role in the industry and mining sector.
