WASHINGTON: Fannie Mae, the nation’s biggest mortgage finance company, said it will pay $59.4 billion in dividends to the US Treasury after a record profit in the first quarter that reflected a multi-billion-dollar tax-related windfall.
The report from Fannie Mae, which recorded pre-tax income of $8.1 billion, came just a day after its smaller rival and fellow state ward Freddie Mac said it would be making a $7 billion dividend payment to the government.
The latest payments from the two government-controlled companies will slash the net cost of their nearly $188-billion taxpayer-funded bailout to just $55.8 billion. That could drop by another $30.1 billion soon if Freddie Mac follows Fannie Mae in recognizing deferred tax assets it had written down.
Both the Obama administration and Congress want to eventually wind the companies down, but there is little agreement on what structure should replace them and their return to profitability has undercut the urgency for change.
“There is a risk that policymakers might look at our profitability and conclude that they do not need to take any action with respect to housing finance reform. I believe that would be a mistake,” Fannie Mae Chief Executive Officer Timothy Mayopoulos told reporters on a conference call.
Fannie Mae booked a gain of $50.6 billion by reversing a write-down on certain tax assets, which vaulted it to an overall profit of $58.7 billion. In the same three months a year earlier, it had net income of $2.7 billion.
Both its pretax income and net income were records.
Fannie Mae has now turned a profit for five straight quarters, while Freddie Mac has been profitable for six.
Given their return to profitability, they have had to consider counting potential tax credits as part of their net worth, a step Fannie Mae took on Thursday.
The terms of their bailout do not allow the two so-called government-sponsored enterprises (GSEs) to buy back the government’s stake, which means they will keep making payments as long as they are profitable without ever recovering the loan amount.
The dividend payment Fannie Mae announced on Thursday will help ease a cash crunch at the US Treasury when a temporary suspension of the debt limit expires on May 18. Analysts predict the Obama administration may be able to continue paying the nation’s bills into October.
“Unfortunately, these profits hurt GSE reform because they give the illusion mortgage finance is a great business,” said Jim Vogel, head of interest rate strategy at FTN Financial in Memphis, Tennessee.
Fannie Mae and Freddie Mac buy home loans and package them into securities, which they guarantee to ensure investors receive payments even when borrowers default. They own or back about half of all US home loans.
The government backing on their loans has helped keep the mortgage market liquid even as private capital fled when the housing boom turned into a bust. While the housing market is now rebounding, very little private capital has flowed back in.
Vogel said private firms simply cannot compete, given the government backing on loans from the two GSEs.
“The business driving Fannie, Freddie profits right now isn’t there for the taking by others,” he said. “’Profits’ are going to blind policymakers to that fact.”
Shares of Fannie Mae and Freddie Mac’s stock, which were taken off the New York Stock Exchange in 2010, have shown signs of life in the last few months as some investors have begun to speculate the two entities might eventually escape government control.
Fannie Mae shares have surged 253 percent this year, while Freddie Mac shares are up 235 percent, although those gains have only brought shares of both to about 90 cents apiece.
Fannie Mae said its first quarter profit was driven in part by the US housing market’s turnaround and lower default rates on soured loans.
Foreclosure activity fell to its lowest level in more than six years in April, according to a report on Thursday from RealtyTrac. A separate report from the Mortgage Bankers Association showed a rise in the mortgage delinquency rate in the first quarter, although Fannie Mae said it saw a decrease in its seriously delinquent loan rate.
Fannie Mae’s profit also reflected a $3.6 billion settlement with Bank of America over mortgage-related claims.
The company’s chief financial officer, David Benson, said the settlement added about $800 million to company’s net income in the first quarter and would likely impact future earning periods as well.
Fannie Mae to send $59.4bn to US Treasury
Fannie Mae to send $59.4bn to US Treasury
Oman projects 3.4% economic growth for 2025, outpacing global peers
JEDDAH: Oman expects its economy to grow by 3.4 percent in 2025, surpassing the performance of many global peers, a senior official announced at the Sultanate’s first International Investment Forum in Muscat.
Speaking at the Advantage Oman Forum on April 27 at the St. Regis Al-Mouj Muscat Resort, Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al-Yousef emphasized the event’s significance. He stated that the anticipated growth "reflects the resilience of Oman’s economy and the confidence it has earned in global markets," according to the Oman News Agency.
Al-Yousef highlighted the increasing momentum across Oman’s economic and investment sectors. “Foreign direct investment in Oman surged by 16.2 percent in the third quarter of 2024 compared to the same period in 2023. Moreover, Oman’s credit rating has been upgraded to ‘BBB-‘ with a stable outlook by S&P Global Ratings,” he added, as per ONA.
According to the Gulf state’s Foreign Ministry, the gross domestic product at constant prices grew by 1.9 percent by the end of the third quarter of 2024, reaching 28.15 billion Omani rials ($73.2 billion) at market prices, compared to 27.63 billion rials in the same period the previous year.
Preliminary data released by the National Centre for Statistics and Information in December showed that the value added by oil activities fell by 2.8 percent, totaling 8.88 billion rials by the end of the third quarter of 2024, down from 9.13 billion rials a year earlier. Oil activities accounted for 31.6 percent of GDP.
Al-Yousef also pointed to Oman’s monetary strength, saying: “The Omani rial is ranked the third strongest currency in the world in 2025. These developments underscore Oman’s strong economic fundamentals and our potential for impact-oriented investors.”
Describing the forum as a "strategic platform," he noted it gathered leading figures from across a range of industries and emphasized that Oman’s growth is bolstered by positive international indicators.
The two-day forum was inaugurated by Sayyid Shihab bin Tariq Al-Said, Deputy Prime Minister for Defense Affairs. Organized by the Ministry of Commerce, Industry and Investment Promotion, the event attracted more than 250 officials, decision-makers, and investors from regional and international markets, underscoring Oman’s emergence as an investment destination.
The first day of the conference featured five key sessions. The opening session, titled “The Shape of Things to Come,” examined megatrends expected to reshape the future of business and governance, with speakers stressing the importance of innovation and sustainability as competitive advantages. The second session, “Risky Business,” discussed strategies to promote a culture of calculated risk-taking, psychological safety, and advanced risk assessment frameworks.
In the third session, “A Defining Moment,” speakers addressed corporate responsibility in tackling climate change and biodiversity loss, advocating for the adoption of circular economies and green technologies, while emphasizing the critical role of public-private partnerships. The fourth session, “Beyond the Comfort of Certainty,” focused on balancing risk and reward in navigating uncertainty for organizational success. The final session, “Have You Heard the One About?” explored how leaders can use purposeful storytelling to reposition countries globally, attract strategic tourism and investment, and build soft power through culture, identity, and vision.
During the forum, Al-Said toured the accompanying exhibition, which showcased the participation of government entities and private sector organizations.
The second day of the event is set to feature panel discussions with key decision-makers, open forums for investor engagement, the signing of new investment agreements, and specialized roundtables addressing sectors such as tourism, logistics, mining, food security, renewable energy, and information technology, according to ONA.
IMF-World Bank meetings end with little tariff clarity, but economic foreboding
- Former Pakistan central bank chief says for many developing countries, there is a real sense of despair that the agenda on Financing for Development is really not centerstage
- During the whirlwind week, many finance and trade ministers sought to meet with US Treasury Secretary Scott Bessent and other key Trump administration officials, to no avail
WASHINGTON: Global finance leaders came to Washington this past week seeking clarity on what it would take to get some relief from President Donald Trump’s multi-layered tariff assault and on just how much pain it will bring to the world economy.
Most headed home with more questions than answers.
Many participants in the International Monetary Fund and World Bank Spring Meetings had a sense that Trump’s administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. During the whirlwind week, many finance and trade ministers sought to meet with US Treasury Secretary Scott Bessent and other key Trump administration officials, to no avail. Those that did were often told to be patient — even as the clock steadily ticks down on the 90-day pause Trump had granted on the steepest levies.
Indeed, not a single deal was finalized over the course of the week despite the Trump administration touting the receipt of 18 written proposals and a full slate of negotiations.
“We are not negotiating. We are just presenting, discussing the economy,” said Polish Finance Minister Andrzej Domanski. He added that he stressed “how this uncertainty is bad for Europe, for the US I mean, it’s actually bad for everyone.”
Warnings that the tariffs — 25 percent on all US imports of vehicles, steel and aluminum and currently 10 percent for most everything else — would cause painful damage to the US and other major economies went largely unheeded by US officials.
“We know that they think — that it won’t be that bad,” Domanski said. “They think it’s a short-term pain, long-term gain. And I’m afraid that we’ll have short-term pain, long-term pain.” The Trump administration’s most substantial trade negotiations during the week were with Japan and South Korea, but the results were inconclusive as Bessent cited “productive” talks with both countries. Specific currency targets for the Japanese yen were not discussed, but both countries’ currency policies are expected to be part of future talks as the US sees currency weakness against the dollar as a nontariff barrier to American exports. The IMF took a slightly more optimistic view of the economic fallout from the highest US tariffs in more than a century, slashing growth forecasts for most countries in its World Economic Outlook but stopping far short of predicting recessions — even for the US and export-dependent China, which now faces US tariffs of 145 percent on many goods.
IMF Managing Director Kristalina Georgieva acknowledged that member countries were anxious about the uncertainty shock to a global economy buffeted by pandemic, inflation and wars but held out hope that trade negotiations would ease the tariff strains.
“We recognize that there is work under way to resolve trade disputes and reduce uncertainty,” Georgieva told reporters. “Uncertainty is really bad for business, so the sooner there is this cloud that is hanging over our heads is lifted, the better for profit, for growth, for the world economy.” Several finance officials told Reuters that odds of recession were higher than the IMF’s 37 percent chance, citing private sector forecasts.
DEBT RISKS RISE
Eric LeCompte, executive director of Jubilee USA Network, a faith-based nonprofit group advocating debt relief, said that the IMF’s forecasts were clearly aimed at preventing market panic, even as officials in private meetings expressed concerns about new debt crises emerging. “It was a do-nothing kind of week,” LeCompte said, adding that debt discussions were inconclusive and overshadowed by tariff talks.
Reza Baqir, a former Pakistan central bank governor who now heads sovereign debt advisory at Alvarez & Marsal, said: “For many developing countries, especially in the Global South, there is a real sense of despair that the agenda on Financing for Development is really not center-stage. And who is going to be there to champion that debate?” World Bank chief economist Indermit Gill also sounded an alarm on rising debt levels for emerging markets, noting that tariffs had prompted a sharp slowdown in trade and foreign direct investment that are crucial to developing country growth.
He and other World Bank and IMF officials told countries to cut their own tariffs to boost growth prospects.
NO US WITHDRAWAL
Policymakers did breathe a sigh of relief when Bessent expressed US support for the IMF and the World Bank, declaring that they have “enduring value” but criticizing their “mission creep” into climate, gender and equality issues. Rather than withdrawing from the institutions as prescribed by the Project 2025 Republican policy manifesto, Bessent said he wanted to refocus them on their core missions of economic stability and development, with expanded World Bank energy financing options and an end to China loans.
Participants at the meetings, along with financial markets, were encouraged by Bessent’s comments early in the week that triple-digit US tariffs on Chinese goods and vice versa were unsustainable, suggesting that a deal to ease them could be reached soon. But
China denied Trump’s assertions that tariff negotiations were under way with Beijing, adding to the week’s confusion over his tariffs and offering little reassurance to country delegations.
“I think most people left here bracing for things to get worse from an economic perspective,” said Josh Lipsky, a former IMF adviser who is now senior director of the Atlantic Council’s GeoEconomics Center. “The broad picture, when you step back, is very concerning.”
But a big challenge for developed countries at the moment was the recent selloff in US Treasury debt and other dollar-based assets, which indicated an erosion of trust in US economic policies, Lipsky said.
Trust in US economic leadership was the fundamental reason that the dollar had achieved reserve currency status, he said. While the US economy is too big to ignore the dollar for now, trading partners will try to seek alternatives unless that trust is repaired, he added.
Saudi Arabia’s international tourism revenue soars by 148%, leading G20 nations
RIYADH: Saudi Arabia’s tourism sector achieved a historic milestone in 2024, with international tourism revenue surging 148 percent compared to 2019 — the highest growth rate among G20 nations.
This achievement reflects the success of Vision 2030, which has firmly positioned the Kingdom as a global leader in tourism, entertainment, and innovation.
The 2024 annual performance report highlighted record-breaking pilgrim numbers, cultural milestones, and major international events, all driven by strategic investments, regulatory reforms, and transformative mega-projects.
Tourism boom
Vision 2030 unlocked Saudi Arabia’s vast tourism potential, establishing it as one of the fastest-growing global destinations.
In 2024, international tourist arrivals surged to 29.7 million, up from 18.04 million in 2016, while domestic travelers nearly doubled to 86.2 million during the same period.
Surpassing its target of 100 million visitors seven years ahead of schedule, the Kingdom has now set a bold new goal of attracting 150 million annual tourists by 2030.
Saudi Arabia’s tourism strategy is driven by mega-projects aiming to transform the travel and hospitality industry.
Pioneering projects like The Red Sea — home to carbon-neutral resorts including Shebara, St. Regis, and Ritz-Carlton Nujuma — are redefining sustainable luxury tourism. The adjacent Red Sea International Airport, the region’s first carbon-neutral terminal, strategically connects over 250 million people within a three-hour flight radius.
In Diriyah, the birthplace of the first Saudi state, 3 million visitors experienced a seamless blend of heritage and hospitality, with developments like the Bab Samhan Hotel offering modern luxury rooted in history.
Meanwhile, at Qiddiya, major entertainment attractions are nearing completion, with Aquarabia Park 81 percent finished and Six Flags Park 87 percent completed.
The Kingdom’s global tourism profile continues to rise, with accolades including AlUla being named Best Cultural Tourism Project in the Middle East, Madinah ranking among the world’s top 100 destinations, and the Asir region earning four awards for excellence in culinary and cultural storytelling.
To enhance accessibility, the Kingdom expanded its e-visa program to 66 countries by 2024, simplifying entry for millions of travelers.
Additionally, Saudi Arabia has emerged as a global leader in safety, ranking highest among G20 nations in security indicators, further solidifying its reputation as a welcoming and secure destination for international visitors.
Pilgrimage services
Serving pilgrims remains a cornerstone of Saudi Arabia’s responsibilities. Vision 2030 has transformed the Hajj and Umrah experience into a model of efficiency, accessibility, and safety.
In 2024, the Kingdom welcomed 16.9 million foreign Umrah pilgrims and 1.61 million foreign Hajj pilgrims, reflecting significant growth from 2016 levels.
Innovations like the Makkah Route Initiative, which fast-tracks visa issuance and pre-clearance in eight countries, served 322,900 pilgrims in 2024 — a rise from just 1,700 in 2017.
The Nusuk platform played a key role in improving pilgrimage planning, helping achieve an 81 percent satisfaction rate on the Pilgrim Experience Index. Transportation infrastructure, including the Haramain High-Speed Railway, the Makkah Bus Network, and the Al-Mashaer Metro Line, facilitated the movement of 69.5 million passengers between holy sites.
The Kingdom’s commitment to pilgrims’ well-being is evident in its healthcare services. In 2024, 390,000 pilgrims received medical care, and 40,000 medical staff were mobilized. Adding to that, 189 hospitals, centers, and mobile clinics were deployed, and 28 open-heart surgeries and 720 cardiac catheterizations were performed.
About 153,000 volunteers supported pilgrimage operations in 2024, up from just 3,352 in 2021, showcasing the growing culture of community service.
Hosting mega-events
Saudi Arabia’s global influence expanded across sports, esports, and entertainment in 2024.
The Kingdom secured the rights to host the 2034 FIFA World Cup, which will feature 48 national teams competing across 15 stadiums in Riyadh, Jeddah, NEOM, Al Khobar, and Abha.
The tournament will be backed by 134 training facilities and 230,000 hotel units, contributing to infrastructure development, job creation, and long-term economic impact.
In the digital realm, Saudi Arabia hosted the inaugural Esports World Cup, the largest tournament of its kind, featuring 1,500 professional players, 500 elite clubs, and 22 competitions. Team Falcons emerged as champions, and the Kingdom further solidified its leadership by winning hosting rights for the Olympic Esports Games.
Meanwhile, Riyadh Season 2024 drew 19 million visitors, with a total attendance of 76.9 million across 423 entertainment attractions.
The festival featured top-tier performances, immersive themed zones, and vibrant cultural displays, reinforcing its reputation as a global entertainment event.
Cultural renaissance
Vision 2030 has revitalized Saudi Arabia’s cultural identity, merging ancient heritage with modern creativity.
The Kingdom now boasts eight UNESCO World Heritage Sites, including the newly listed Al-Faw Archaeological Site, and 16 UNESCO Intangible Cultural Heritage elements celebrating traditions like Arabic calligraphy, Saudi coffee, and falconry.
Groundbreaking discoveries such as the Bronze Age Village of Al-Natah in AlUla have further illuminated the region’s rich history.
In arts and entertainment, the critically acclaimed film "Norah" became the first Saudi production selected for the Cannes Film Festival’s official lineup, while the Kingdom’s first Arabic opera, Zarqa Al Yamama, premiered to acclaim.
The King Salman Global Academy for Arabic Language trained 782 international students, promoting Arabic language and culture across three continents.
Economic impact
Tourism is a major driver of Saudi Arabia’s economic diversification, with sector employment reaching 966,500 workers in 2024, up from 683,000 in 2020. Women now play a critical role, with 112,000 Saudi women employed in tourism, marking a 67 percent increase.
Investment in the sector has surged from $314.67 million in 2021 to $3.95 billion by the third quarter of 2024, fueling massive infrastructure expansion, including the Kingdom’s hospitality capacity growing to 475,900 hotel rooms.
Passengers in Saudi airports rose 46% in 2024
RIYADH: Saudi Arabia’s airports handled 128 million passengers in 2024, marking a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report.
In 2024, airports across the country operated 905,000 flights and managed 1.2 million tonnes of cargo, underscoring Saudi Arabia’s growing stature as a logistics and aviation hub.
Strengthening the aviation and logistics sector is a key goal outlined in Vision 2030, as the Kingdom aims to establish itself as a global center for business and tourism by the end of this decade.
“Saudi Arabia is transforming its transport ecosystem, positioning itself as a global logistics and aviation hub by 2030,” the report stated.
As part of these efforts, the Kingdom launched over 60 new routes last year under its Air Connectivity Program, with 12 new international carriers beginning operations in Saudi cities. Since its launch in 2021, the program has expanded air links with global destinations, enhancing Saudi Arabia’s prominence in global aviation.
Innovation also took flight in 2024, with Saudi Arabia debuting the region’s first autonomous air taxi pilot project during the Hajj season. Designed to transport pilgrims across holy sites and expedite emergency responses, the air taxi pilot marks a significant step forward for the Kingdom’s smart mobility initiatives. Last year, Saudi authorities also granted the first operational license for drones to clean building facades.
Transportation and logistics
Saudi Arabia’s transportation and logistics infrastructure continued its rapid growth throughout 2024. The Kingdom ranked first regionally and 20th globally in handling commercial tonnage, while its Logistics Performance Index ranking improved to 38th globally, up from 52nd in 2016.
“Saudi Arabia has embraced its strategic location as a global gateway between East and West, transforming logistics and transportation into cornerstones of economic development,” said the report.
The year saw the launch of the $346.6 million Maersk Logistics Hub at Jeddah Islamic Port, and the addition of 34 maritime services across Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port.
Further cementing its leadership, the Saudi Ports Authority, also known as Mawani, won the International Finance Award for infrastructure development, highlighting the sector’s global recognition.
Saudi Arabia also secured membership in the Council of the International Transport Forum in 2024. Commenting on the achievement at that time, Saleh Al-Jasser, minister of Transport and Logistics, noted that it reaffirms the Kingdom’s pivotal role in advancing global transport and logistics services.
Additionally, the master plan for an integrated logistics zone at King Salman International Airport received approval, reinforcing the Kingdom’s ambitions to become a world-class logistics hub.
“Under Vision 2030, the logistics sector has undergone sweeping reforms and infrastructure advancements, aiming to make the Kingdom a world-class logistics hub that enables trade, strengthens regional integration, and supports national economic diversification,” added the report.
Expanding rail transport
Saudi Arabia’s rail sector also recorded significant progress. In 2024, 13 million passengers traveled via the national rail network, a 22 percent increase compared to the previous year, while freight movement reached 28 million tonnes.
“These developments are reinforcing the Kingdom’s position as a regional leader in integrated, sustainable transport, supporting both economic growth and improved quality of life,” said the report.
The Riyadh Metro, one of the world’s largest urban transit projects, was officially launched last year.
Spanning six lines and 176 km, the metro boasts a daily capacity of 3.6 million passengers. In its first week of operation, the network transported 1.9 million passengers.
The Riyadh Metro is a major component of Saudi Arabia’s Vision 2030 strategy, aimed at reducing traffic congestion in the capital and enhancing residents’ quality of life.
Egypt’s annual unemployment rate down to 6.6%
RIYADH: Egypt’s unemployment rate declined to 6.6 percent in 2024, down 0.4 percent from the previous year, driven by lower joblessness across both urban and rural areas and by growth in sectors such as agriculture, retail, and construction, official data shows.
The Central Agency for Public Mobilization and Statistics reported that manufacturing also experienced strong employment growth, further contributing to the overall decrease.
The number of unemployed individuals fell by 77,000 to 2.11 million, marking a 3.5 percent decrease from 2023, while the total labor force expanded by 2.9 percent to 32.041 million.
CAPMAS’s annual labor force survey indicated that youth unemployment among those aged 15 to 29 dropped to 14.9 percent, a decline of 1 percentage point from the previous year. Within this age group, male unemployment stood at 9.8 percent, while the rate for females remained significantly higher at 37.1 percent.
Among teenagers aged 15 to 19, unemployment fell slightly to 12.2 percent from 12.4 percent in 2023. For young people with intermediate, higher, and university-level education, the rate dropped to 18.7 percent, compared to 20.3 percent the previous year.
“The number of entrepreneurs managing their own businesses reached 1.34 million, representing 4.2 percent of the total workforce,” the report stated.
Labor force participation remained higher in rural areas, with 17.96 million individuals compared to 14.07 million in urban centers. Gender disparities persisted, with males accounting for 26.08 million of the labor force and females 5.96 million.
Urban unemployment declined to 9.6 percent from 9.9 percent, while rural unemployment dropped to 4.2 percent from 4.8 percent.
Among males, the urban joblessness rate stood at 6.3 percent, compared to 2.6 percent in rural areas. For females, the figures were notably higher, at 21.8 percent in urban regions and 12.4 percent in rural zones, where greater engagement in agriculture helped boost employment.
The share of unemployed individuals who had previously worked also fell, reaching 42.3 percent in 2024, down from 45.3 percent the year before, suggesting improvements in job retention.
The number of employed individuals rose to 29.92 million, a 3.3 percent increase from 28.95 million in 2023. Of these, 24.98 million were men and 4.93 million were women.
Employment remained more concentrated in rural areas, with 17.20 million workers compared to 12.72 million in urban settings.
Agriculture and fishing continued to dominate as the largest employment sectors, accounting for 5.59 million workers, or 18.7 percent of the total workforce. Wholesale and retail trade employed 4.63 million individuals, or 15.5 percent of the workforce, while the construction sector accounted for 4.04 million workers, or 13.5 percent.
The manufacturing sector saw a 5.4 percent rise in employment, reaching 3.94 million workers, or 13.2 percent of total employment.
Overall economic activity among those aged 15 and older rose to 44.2 percent in 2024, up from 43.4 percent the previous year. Male participation remained substantially higher at 70.3 percent, while female participation increased modestly to 16.9 percent.
Urban participation in economic activity grew to 44 percent from 42.7 percent, and rural participation edged up to 44.4 percent from 44 percent.
