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Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch
So far in 2025, Gulf Cooperation Council banks have issued over $55 billion in US dollar debt. Getty
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Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

Saudi banks driving GCC surge in US dollar debt issuance to fuel Vision 2030 growth: Fitch

RIYADH: 黑料社区鈥檚 banking sector is leading a shift in Gulf financing, driving a surge in US dollar-denominated subordinated debt to fund rapid credit growth and ambitious national projects, a new analysis showed.聽

Fitch Ratings said Saudi banks are at the forefront of this regional trend, which is expected to continue into 2026 amid rising capital needs and tighter regulatory requirements.聽

As the Saudi government pushes ahead with multi-trillion-dollar Vision 2030 initiatives, banks are turning to global US dollar markets to raise crucial capital, boosting issuance of complex, high-yield subordinated bonds.聽

So far in 2025, Gulf Cooperation Council banks have issued over $55 billion in US dollar debt, already surpassing 2024鈥檚 total of $36 billion. 鈥淥ver half ($29.3 billion) is from Saudi banks, including $11.7 billion in additional Tier 1 (AT1) and Tier 2 capital,鈥 the agency said.聽

Subordinated debt now accounts for over 70 percent of Saudi banks鈥 dollar issuance, up from about 50 percent in 2024, reflecting a move toward riskier instruments that strengthen banks鈥 capital bases.聽

Fitch cited several drivers behind the surge. Saudi banks are experiencing the strongest credit growth in the GCC, projected at 12 percent in 2025. This lending boom, which finances large-scale Vision 2030 projects, is outpacing deposit growth and gradually eroding capital buffers.聽

鈥淪trong financing growth is outpacing deposit growth and has eroded capital buffers in recent years. The sector common equity Tier 1 (CET1) ratio decreased by 213bp over 2020-2024,鈥 the report noted.聽

Upcoming regulatory changes 鈥 including a 1 percent countercyclical buffer from May 2026 and tighter interest-rate risk rules 鈥 are expected to add further pressure on capital ratios.

Additionally, financing major Vision 2030 projects carries higher risk weightings under Basel III rules, further straining core capital.聽

While AT1 instruments continue to dominate non-core capital markets, Saudi banks are also diversifying. They have issued nearly $6 billion in Tier 2 debt in 2025, helping balance their capital structure and attract a broader base of international investors.聽

Fitch expects issuance momentum to continue into 2026, supported by over $10 billion of maturing debt that needs refinancing, ongoing financing demand, and anticipated lower interest rates.

About $1.8 billion of AT1 instruments reaching their first call date next year are also expected to be redeemed under favorable market conditions.聽

Fitch Ratings had predicted that GCC banks are set to exceed $60 billion of US dollar debt issuance in 2025, and $40 billion excluding certificates of deposit, surpassing the record levels of 2024.聽

In a report released earlier this month, the agency said the surge is driven by heightened maturities, strong credit growth and favorable financing conditions.聽


Kuwait鈥檚 economy set to grow 2.6% in 2025: IMF

Kuwait鈥檚 economy set to grow 2.6% in 2025: IMF
Updated 11 sec ago

Kuwait鈥檚 economy set to grow 2.6% in 2025: IMF

Kuwait鈥檚 economy set to grow 2.6% in 2025: IMF

RIYADH: Kuwait鈥檚 economy is on a steady recovery in 2025, driven by rising oil output and resilient non-oil growth after contracting 2.6 percent last year, the International Monetary Fund has said. 

Following its staff visit to the country, the IMF said higher oil production, after the recent unwinding of OPEC+ cuts, is expected to lift the oil sector by 2.4 percent, while non-oil growth is projected at 2.7 percent.

The forecast aligns closely with the World Bank鈥檚 April projection of 2.2 percent growth this year, with expansion accelerating to 2.7 percent in 2026 and 2027. 

IMF Mission Chief for Kuwait Francisco Parodi said: 鈥淭he economy is recovering amid higher oil production and robust non-oil growth. An incipient recovery is underway, with real GDP expanding by 1 percent in the first quarter of 2025.鈥 

He added: 鈥淔or 2025, real GDP is projected to expand by 2.6 percent.鈥 

In July, the National Bank of Kuwait reported that the economy returned to positive territory in the first quarter of 2025, recording a 1 percent year-on-year increase, following seven consecutive quarters of contraction. 

The bank noted that the non-oil economy continued to expand, supported by momentum in manufacturing, real estate, and transportation, while the impact of previous oil production cuts has begun to fade. 

Kuwait also increased its oil production in April by 135,000 barrels per day, which is expected to bolster overall economic activity. 

The IMF report added that inflation continues to moderate, though lower oil prices are weighing on fiscal and external balances. Headline consumer price index inflation is projected to ease to 2.2 percent in 2025, down from 2.9 percent in 2024. 

鈥淭he fiscal deficit of the budgetary central government is projected to rise to 7.8 percent of GDP in FY2025/26, up from 2.2 percent of GDP in FY2024/25, primarily reflecting lower oil revenue,鈥 said Parodi. 

He added: 鈥淚n parallel, the current account surplus is projected to moderate to 26.5 percent of GDP in 2025, down from 29.1 percent of GDP in 2024, mainly due to lower oil exports.鈥 

Affirming the growth of the non-oil sector, the report noted that credit to the non-financial private sector is projected to rise to 6.1 percent in 2025, up from 5.2 percent in 2024. 

The IMF also said that Kuwaiti banks have maintained strong capital and liquidity buffers, while non-performing loans remain low. 

鈥淭he risks to the economic outlook are broadly balanced. The economy is heavily exposed in the short run to upside and downside risks from shifts in oil prices and OPEC+ production quotas, which could arise from fluctuations in global growth, geopolitical tensions or non-OPEC+ supply,鈥 said Parodi. 

He also lauded recent government initiatives, including the Public Debt Law enacted in March, which could further support the country鈥檚 economic recovery. 

The law, approved by Kuwait鈥檚 Ministry of Finance, aims to address fiscal pressures and finance infrastructure projects, marking the country鈥檚 return to international debt markets after an eight-year hiatus. 

At the time, the ministry said the law allows the government to issue up to 30 billion Kuwaiti dinars ($98 billion) in debt instruments, in either local or major foreign currencies, with maturities of up to 50 years. 

鈥淎 new Public Debt Law was enacted in March 2025, enabling the government to issue debt for the first time in almost a decade. Accelerating reform implementation is needed to promote economic diversification, enhance competitiveness, and boost non-oil growth,鈥 said Parodi.


Saudi POS transactions hit $3.3bn on surge in home supplies spending 聽

Saudi POS transactions hit $3.3bn on surge in home supplies spending 聽
Updated 42 min 53 sec ago

Saudi POS transactions hit $3.3bn on surge in home supplies spending 聽

Saudi POS transactions hit $3.3bn on surge in home supplies spending 聽

RIYADH: Spending on furniture and home supplies in 黑料社区 saw a 22.5 percent surge during the week ending Sept. 20, keeping total point-of-sale transactions above the $3 billion mark. 

Transactions in the category reached SR609.46 million ($162 million), helping overall POS payments hit SR12.40 billion despite a 5.4 percent weekly decline, the Saudi Central Bank, also known as SAMA, said in its latest bulletin. 

The surge reflects rising demand in the housing market, which saw nearly 93,700 deals in the first half of 2025 鈥 a 7 percent increase from a year earlier, according to Knight Frank.

The broader real estate sector also maintained steady growth in the second quarter, with residential property prices edging up 0.4 percent, data from the General Authority for Statistics showed. 

SAMA鈥檚 weekly bulletin showed spending on electronics and electrical devices came second overall, rising 6.8 percent to SR201.34 million. Jewelry sales climbed 10.8 percent to SR352.10 million, though the number of transactions dropped 3.5 percent to 271,000. 

The fourth positive change was seen in expenditure on construction materials. The category saw a 4.3 percent increase in spending to SR410.41 million, although this was alongsude a 5.5 percent decrease in terms of volume to 2.12 million. 

The education sector saw the largest decrease, dropping by 39.5 percent to SR172.63 million. Laundry services followed, dropping by 12.1 percent to SR43.49 million. 

In third place, the subcategory of books and stationery saw a 10.7 percent decrease to reach SR122.38million. 

Food and beverages 鈥 the sector with the biggest share of total POS value 鈥 recorded a 7.9 percent decrease to SR1.81 billion, while the restaurants and cafes sector saw a 7.8 percent decrease, totaling SR1.44 billion and claiming the second-biggest share of this week鈥檚 POS. 

Spending in gas stations claimed the third biggest share at SR955.70 million despite a 6.6 percent decline in transaction numbers. 

The top three categories accounted for approximately 33.98 percent of the week鈥檚 total POS payments, amounting to SR4.21 billion. 

Transportation and health saw a 3.6 percent and a 5.3 percent drop in expenses to SR931.91 million and SR829.53 million, respectively. A small decrease was seen in spending on public utilities and services at 1.3 percent to SR47.66 million. 

Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR4.49 billion, a 3.5 percent decrease from the previous week.  

Jeddah followed closely despite a 4.3 percent dip to SR1.77 billion, while Dammam ranked third, down 4.2 percent to SR635.82 million. 


黑料社区鈥檚 non-oil exports rise 30.4% to $9bn: GASTAT

黑料社区鈥檚 non-oil exports rise 30.4% to $9bn: GASTAT
Updated 25 September 2025

黑料社区鈥檚 non-oil exports rise 30.4% to $9bn: GASTAT

黑料社区鈥檚 non-oil exports rise 30.4% to $9bn: GASTAT

RIYADH: 黑料社区鈥檚 non-oil exports, including re-exports, reached SR33.71 billion ($8.99 billion) in July, marking a 30.4 percent increase compared to the same month last year, official data showed. 

According to preliminary figures released by the General Authority for Statistics, the UAE was the top destination for Saudi non-oil products, with shipments totaling SR10 billion. 

India ranked second, receiving goods worth SR3.48 billion, followed by China at SR1.99 billion, Turkiye at SR1.95 billion, the UK at SR1.25 billion, and Egypt at SR992.4 million. 

The robust growth highlights progress under 黑料社区鈥檚 Vision 2030 program, which seeks to diversify the economy and reduce reliance on oil revenues. 

鈥淣on-oil exports, including re-exports, recorded an increase of 30.4 percent compared to July 2024, while national non-oil exports, excluding re-exports, grew by 0.6 percent. Moreover, the value of re-exported goods increased by 111.3 percent during the same period,鈥 said GASTAT. 

Other key destinations in July included Belgium at SR929.1 million, Qatar at SR778.6 million, and Switzerland at SR776.1 million. Exports to Kuwait stood at SR711.6 million, while Jordan and Bahrain received SR678.2 million and SR656 million, respectively. 

Machinery, electrical equipment, and parts led the export basket, accounting for 29.7 percent of non-oil shipments and registering a sharp 191.1 percent year-on-year increase.

Chemical products followed with a 19.6 percent share, edging up 0.9 percent from July 2024. 

In May, GASTAT noted that 黑料社区鈥檚 gross domestic product grew 2.7 percent year on year in the first quarter, driven by robust non-oil activity. 

Economy and Planning Minister Faisal Al-Ibrahim, who also chairs GASTAT鈥檚 board, said non-oil activities contributed 53.2 percent to GDP 鈥 a 5.7 percent rise over previous estimates. 

He added that the Kingdom鈥檚 economic outlook remains strong, supported by structural reforms and large-scale state-led projects. 

Further reflecting this momentum, S&P Global reported that 黑料社区鈥檚 Purchasing Managers鈥 Index rose to 56.4 in August from 56.3 in July, staying well above the 50-mark that separates growth from contraction. The Kingdom outpaced regional peers, with the UAE and Kuwait posting PMIs of 53.3 and 53, respectively. 
 
Export gateways 

According to GASTAT, ports played a key role in the July surge.

Jeddah Islamic Sea Port handled the largest volume of non-oil exports at SR3.63 billion, followed by King Fahad Industrial Sea Port at SR3.37 billion and King Abdulaziz Sea Port in Dammam at SR2.44 billion.

Jubail and Ras Al Khair sea ports processed SR2.10 billion and SR1.97 billion, respectively. 

On land, Al-Batha Port processed SR2.18 billion in non-oil exports, while Al-Hadithah and Al-Wadiah ports recorded SR915.4 million and SR553.8 million, respectively. 

Among airports, King Abdulaziz International Airport processed non-oil outbound goods valued at SR6.63 billion, followed by King Khalid International Airport at SR4.78 billion, and King Fahad International Airport at SR404.4 million. 

Overall merchandise exports 

黑料社区鈥檚 overall merchandise exports stood at SR102.38 billion in July, representing a rise of 7.8 percent compared to the same month in 2024. 

Oil exports decreased by 0.7 percent year on year in July. 鈥淐onsequently, the percentage of oil exports out of total exports decreased from 72.8 percent in July 2024 to 67.1 percent in July 2025,鈥 said the report. 

Asia remained the largest market for Saudi exports in July, accounting for SR72.44 billion. 

Europe followed at SR16.54 billion, with Africa and the Americas receiving Saudi exports valued at SR7.50 billion and SR5.72 billion, respectively. 

China was the top destination for 黑料社区鈥檚 merchandise exports in July, as the Asian nation received shipments valued at SR14.33 billion. 

The UAE received goods worth SR10.85 billion, followed by India at SR9.66 billion, South Korea at SR8.72 billion and Japan at SR7.14 billion. 

In July, exports to the US stood at SR4.22 billion, while Egypt and Malta received inbound shipments valued at SR3.68 billion and SR3.43 billion, respectively. 

Imports in July 

黑料社区鈥檚 imports decreased by 2.5 percent year on year in July to reach SR75.52 billion, while the merchandise trade balance surplus rose by 53.4 percent over the same period. 

Machinery, mechanical and electrical equipment led imports, totaling SR22.59 billion in July, followed by transport parts at SR9.97 billion and base metals at SR7.11 billion. 

In July, the Kingdom imported chemical products valued at SR6.91 billion, while mineral goods accounted for SR4.04 billion. 

By region, Asia remained the Kingdom鈥檚 largest trade partner, contributing SR41.96 billion in imports. 

Imports from Europe and the Americas amounted to SR20.24 billion and SR9.13 billion, respectively. Africa supplied SR3.52 billion worth of goods, while imports from Oceania totaled SR648.5 million. 

China led all countries as the top source of imports, with SR19.47 billion worth of inbound shipments in July, followed by the US at SR6.04 billion, and the UAE at SR4.82 billion. 

In July, 黑料社区 received goods worth SR3.39 billion from Germany, while imports from India stood at SR3.37 billion. 

Sea routes were the dominant entry channel for imports, accounting for SR42.87 billion, while air and land routes handled inbound goods worth SR24.13 billion, and SR8.52 billion, respectively. 

King Abdulaziz Sea Port in Dammam was the leading sea entry point with SR19.67 billion in imports. 

Jeddah Islamic Sea Port handled inbound shipments valued at SR15.75 billion, followed by Ras Tanura Sea Port at SR1.50 billion and King Abdullah Sea Port at SR934.8 million. 

Among land entry points, Al-Batha Port processed SR3.59 billion worth of goods, while Riyadh Dry Port and King Fahad Bridge processed SR2.26 billion and SR800.1 million, respectively. 

By air, King Khalid International Airport received SR10.86 billion in imports in July. 

King Abdulaziz International Airport and King Fahad International Airport handled SR8.44 billion and SR4.31 billion, respectively. 


Closing Bell: Saudi main index closes in green at 11,426聽

Closing Bell: Saudi main index closes in green at 11,426聽
Updated 24 September 2025

Closing Bell: Saudi main index closes in green at 11,426聽

Closing Bell: Saudi main index closes in green at 11,426聽

RIYADH: 黑料社区鈥檚 Tadawul All-Share Index rose on Wednesday, gaining 550.03 points, or 5.06 percent, to close at 11,426.45. 

The total trading turnover of the benchmark index was SR14.46 billion ($3.86 billion), as 247 of the listed stocks advanced, while only 11 retreated.   

The MSCI Tadawul Index also increased, up by 80.07 points, or 5.66 percent, to close at 1,494.88. 

The Kingdom鈥檚 parallel market Nomu gained 308.68 points, or 1.22 percent, to close at 25,608.10. This comes as 65 of the listed stocks advanced, while 39 retreated. 

The session saw an early surge, with Tadawul climbing 4.48 percent within the first hour of trading.

Alinma Bank led the gains, rising 9.99 percent to SR27.96, followed by Dar Alarkan Real Estate Development Co., also up 9.99 percent to reach SR17.73, and Bank Albilad, which rose 9.96 percent to SR29.82. 

On the downside, MBC Group Co. fell 2.20 percent to SR34.62, Malath Cooperative Insurance Co. dropped 1.35 percent to SR13.13, and Amlak International Finance Co. declined 1.20 percent to SR13.16.    

On the announcements front, International Human Resources Co. secured a renewed and amended one-year Shariah-compliant credit facility worth SR30 million from Al-Rajhi Bank, received on Aug. 19 following the final agreement on Sept. 22. 

The financing will be primarily allocated for working capital and partially for issuing letters of guarantee for contracts and projects. 

Shares of International Human Resources Co. traded 0.18 percent higher on the parallel market, closing at SR5.61. 


Saudi鈥揝panish JV to build green hydrogen electrode plant at SPARK聽

Saudi鈥揝panish JV to build green hydrogen electrode plant at SPARK聽
Updated 24 September 2025

Saudi鈥揝panish JV to build green hydrogen electrode plant at SPARK聽

Saudi鈥揝panish JV to build green hydrogen electrode plant at SPARK聽

JEDDAH: 黑料社区鈥檚 green hydrogen sector is set to receive a boost with the development of an advanced electrode manufacturing facility at King Salman Energy Park, underscoring the Kingdom鈥檚 drive for sustainable industrial transformation. 

Jolt Green Chemical Industries, a Saudi鈥揝panish joint venture between the Green Electrodes Consortium for Industry and Spain鈥檚 Jolt Solutions, has signed an agreement with Dyar Al-Safwah Engineering Consultancy to engineer and oversee construction of the plant in the Eastern Province, according to a press release. 

The initiative aligns with 黑料社区鈥檚 Vision 2030, which prioritizes green hydrogen, local content development, and technology transfer as key pillars of sustainable economic transformation. By advancing these goals, the Kingdom is strengthening its position as a regional hub for clean energy technologies. 

It also supports the Kingdom鈥檚 strategic goal of achieving 75 percent localization in the energy sector by 2030. 

The signing ceremony was attended by Arturo Vilavella, chief operating officer of Jolt Green Hydrogen Solutions; Khodran Al-Zahrani, CEO of Dyar Al-Safwah; Abdulrahman Al-Qahtani, CEO of the joint venture; and Said Jubran Al-Qahtani, chairman of the Green Electrodes Consortium. 

Al-Qahtani affirmed that 鈥渢he plant will serve as a platform for technology localization and the empowerment of national talent, thereby strengthening the Kingdom鈥檚 position as a regional hub for green technologies.鈥 

He also expressed his gratitude and appreciation to the Ministry of Energy, noting that its support and encouragement during previous visits played a pivotal role in motivating the company to bring this technology to the Kingdom and localize it, the release added. 

Scheduled to begin operations in the second quarter of 2027, the facility will feature advanced automated production lines, dedicated research and development laboratories, and sustainable practices such as wastewater reuse and solar integration.  

At full capacity, the plant will supply over 750,000 sq. meters of electrodes annually. 

The plant will focus on producing and refurbishing high-performance catalyst-coated electrodes. It will also support the Kingdom鈥檚 initiatives in green hydrogen, petrochemicals, and refining. Additional areas include water treatment, eFuel, and batteries, as well as desalination, disinfection, chlor-alkali, and pipeline protection.