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RIYADH: ��������’s Tadawul All Share Index gained 8.04 points, or 0.07, to close at 11,129.64 on Wednesday. 

Total trading turnover reached SR5.41 billion ($1.44 billion), with 103 stocks posting gains and 140 declining. 

The Kingdom’s parallel market, Nomu, also recorded an increase, gaining 130.72 points, or 0.48 percent, to settle at 27,375.84, as 32 stocks advanced and 41 retreated.

The MSCI Tadawul 30 Index also gained 3.34 points, or 0.24 percent, to finish at 1,423.94. 

BAAN Holding Group Co. was the best-performing stock of the session, with its share price rising 9.73 percent to SR2.48. Saudi Industrial Export Co. followed with a 7.66 percent increase to SR2.39. 

Other gainers included Almunajem Foods Co., which rose to a fresh year high on Wednesday, closing at SR77 with a 5.77 percent increase. 

On the losing side, Buruj Cooperative Insurance Co. saw the steepest decline, falling 3.24 percent to SR17.92. Saudi Industrial Development Co. dropped 3.07 percent to SR30.9, and National Shipping Co. of �������� declined 3.06 percent to SR23.75. 

On the announcements front, ��������n Mining Co., also known as Ma’aden, finalized its acquisition of all shares owned by AWA Saudi and Alcoa Saudi in two of its major subsidiaries, according to a statement on the Saudi Stock Exchange.

The move follows the approval by Ma’aden’s extraordinary general assembly on June 25 to increase the company’s capital through a share issuance as consideration for acquiring the remaining stakes in Ma’aden Bauxite and Alumina Co. and Ma’aden Aluminium Co.

According to Ma’aden, the acquisition was made effective, and share allocation procedures were completed on July 1. The newly issued shares were deposited in favor of AWA Saudi and Alcoa Saudi, with the holdings officially listed on the same day.

The acquisition involved Ma’aden purchasing AWA Saudi’s entire stake in Ma’aden Bauxite and Alumina Co., totaling 128,010,000 ordinary shares — equivalent to 25.1 percent of the company’s issued capital.

It also included Alcoa Saudi’s full shareholding in Ma’aden Aluminium Co., amounting to 165,001,125 ordinary shares, or 25.1 percent of the company’s issued capital.

To execute the transaction, Ma’aden increased its capital from SR38.03 billion to SR38.89 billion — a 2.26 percent rise. As a result, the total number of its ordinary shares grew from 3.80 billion to 3.89 billion.

Under the new share distribution, Alcoa Saudi received 67,612,162 new ordinary shares, representing 1.74 percent of Ma’aden’s post-acquisition capital, while AWA Saudi received 18,365,385, or 0.47 percent of the capital.

Additionally, Ma’aden paid AWA Saudi SR562.5 million in cash as part of the transaction. The company emphasized that the acquisition does not involve any related parties.

The financial implications of the deal will be reflected in Ma’aden’s consolidated financial statements for the fiscal year ending June 30. 

Ma’aden’s share price closed 1.72 percent higher to reach SR53.25.

Saudi National Bank announced its plan to redeem its SR2 billion tier-1 capital sukuk in full on July 15, marking the 10th anniversary of the instrument’s issuance.

The sukuk, which was launched on July 15, 2015, will be redeemed at face value — 100 percent of the issue price — in accordance with the terms and conditions set at issuance, the bank stated in a press release published on Tadawul.

The move follows Saudi National Bank’s securing of the necessary regulatory approval to proceed with the redemption. The full principal amount, along with any accrued but unpaid periodic distributions, will be paid to sukuk holders on the redemption date.

The SR2 billion sukuk issuance comprised 2,000 certificates, each with a face value of SR1 million. It represented 100 percent of the issued sukuk under this offering. Following the redemption, the total value of the sukuk issuance will be reduced to zero.

This redemption reflects the bank’s capital management strategy and its ongoing commitment to optimizing its financial structure.

The bank’s share price closed 0.34 percent higher on Wednesday’s session to SR35.84.

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.