DUBAI: Saudi Arabia’s index gained 1.2 percent with National Commercial Bank adding 3.9 percent. Ratings agency Moody’s said the bank’s brand and diversified assets make it resilient to slower economic growth in Saudi Arabia.
Al Rajhi Bank was up 1.4 percent after the Capital Market Authority approved an increase in capital. The bank, which is currently capitalized at SR16.25 billion ($4.3 billion), proposed increasing its capital to up to SR25 billion.
Saudi Arabia’s impending entry into emerging market indexes should mean a $15 billion inflow of “passive” benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Saudi’s Almarai climbed 1.7 percent after the firm said it would acquire Premier Foods for an enterprise value of SR108 million.
In Dubai, the index added 0.5 percent with Emirates NBD, its largest bank, gaining 2.1 percent. The company called a shareholders’ meeting on Feb. 20 to discuss the issue of non-convertible securities.
Commercial Bank of Dubai rose 0.8 percent after its board proposed a full-year cash dividend of 20.7 percent of its share capital. The Abu Dhabi index rose 0.2 percent, with Emirates Telecommunications gaining 0.6 percent. Abu Dhabi Islamic Bank increased 1.6 percent to its highest since April 2016, its third straight session of gains. The lender has gained since reporting a 23 percent increase in its fourth-quarter net profit.
Qatar’s index edged down 0.1 percent, with Commercial Bank declining 0.8 percent despite reporting a higher full-year net profit and proposing a cash dividend of 1.5 riyal per share for the same period.
Egypt’s blue-chip share index rose sharply on Tuesday boosted by major lender Commercial International Bank after its strong fourth-quarter earnings, while banks also lifted Saudi Arabia’s stock market.
Egypt’s index gained for a ninth straight session, climbing 2.6 percent with 27 of its 30 stocks rising.
The country’s biggest lender Commercial International Bank jumped 3.9 percent after it reported fourth-quarter net profit after interest of 2.56 billion Egyptian pounds ($146 million) compared to 1.87 billion pounds a year ago. Global Telecom Holding climbed 3.3 percent to its highest since July after major shareholder Veon said that it offered to buy out the firm.
National banks deliver to boost Saudi stocks
National banks deliver to boost Saudi stocks
- National Commercial Bank added 3.9 percent, while Al Rajhi Bank was up 1.4 percent after the Capital Market Authority approved an increase in capital
- Saudi Arabia’s impending entry into emerging market indexes should mean a $15 billion inflow of passive benchmark-linked funds
Saudi money supply hits $791bn as demand deposits regain ground
RIYADH: Saudi Arabia’s money supply climbed to SR2.97 trillion ($791 billion) in January, marking a 9 percent annual rise, official data showed.
According to figures from the Saudi Central Bank, known as SAMA, demand deposits accounted for 48.75 percent of the total, reaching SR1.45 trillion. While still below the April 2021 peak of 60.21 percent, they edged up from 48.42 percent a year ago, reflecting shifting monetary conditions.
Time and savings deposits — which surged during the US Federal Reserve’s aggressive rate hikes, mirrored by Saudi Arabia due to the riyal’s peg to the US dollar — reached SR985.03 billion in January, accounting for 33.21 percent of total deposits.
As the Fed began easing monetary policy in September, lowering interest rates from their 6 percent peak to 5 percent by December, time deposits started to decline from their 33.61 percent high in November.
This shift reflects a gradual return to shorter-term deposit preferences as rate-sensitive accounts adjust to a lower-yield environment.
The third-largest category, other quasi-money deposits — including residents’ foreign currency accounts, marginal deposits for letters of credit, outstanding remittances, and bank repo transactions with the private sector — stood at SR301.28 billion, making up 10.16 percent of total deposits. Currency outside banks totaled SR233.71 billion.
Over the past two years, the Fed’s aggressive rate hikes aimed at curbing inflation led to a rise in term deposits as customers sought higher-yielding accounts, but with benchmark rates now easing, demand deposits have started to regain share.
Despite the 9 percent annual rise in money supply, deposit growth continues to lag behind bank lending, which surged 14.66 percent during the same period to exceed SR3 trillion for the first time. This growth has been driven by corporate credit expansion, particularly in real estate, infrastructure, and other key Vision 2030 sectors.
As deposit inflows moderate, Saudi banks have increasingly turned to external borrowing to bridge funding gaps. Recent issuances of euro-denominated bonds highlight the evolving financing landscape, with the debt capital market playing an increasingly pivotal role.
Speaking at the Capital Markets Forum 2025 in Riyadh in February, Mohammad Al-Faadhel, assistant deputy of financing at the Capital Market Authority, highlighted how Vision 2030 has transformed Saudi Arabia from a capital exporter to a credit-driven market, accelerating debt market growth.
Al-Faadhel noted that the Sukuk and Development Capital Market Committee was established in collaboration with key stakeholders to remove obstacles and support market expansion.
With ongoing structural reforms, Saudi Arabia’s financial ecosystem is evolving rapidly, setting the stage for continued growth in capital markets, corporate lending, and alternative financing mechanisms under Vision 2030.
Loan-to-deposit ratio holds steady
Saudi Arabia’s loan-to-deposit ratio rose to 82.78 percent in January, up from 80.05 percent in the same month last year, yet slightly lower than December’s 83.24 percent, according to SAMA data.
The LDR, a key banking metric, measures the proportion of loans issued by banks relative to their total deposits, indicating liquidity levels and lending capacity.
The increase over the past year reflects strong credit demand, particularly from corporate borrowers in key Vision 2030 sectors such as real estate, infrastructure, and industrial expansion.
However, the slight month-on-month decline suggests a stabilization in lending activity, as banks balance loan issuance with available deposit inflows. Despite the surge in credit, the LDR remains well below the regulatory cap of 90 percent, ensuring ample liquidity and financial stability within the banking system.
This ratio is closely monitored by regulators and investors as it influences banks’ ability to extend new loans while maintaining a healthy funding base.
BSF, Diriyah Co. ink $1.6bn financing deal to develop Wadi Safar project
JEDDAH: Banque Saudi Fransi has signed a financing deal worth SR6 billion ($1.6 billion) with Diriyah Co. to develop the Wadi Safar project, highlighting the private sector’s role in driving economic growth.
The development is a key cultural and tourism destination within the larger Diriyah area, which aims to attract over 50 million visitors by 2030 while supporting major initiatives, according to the bank, which rebranded as BSF in June after 48 years in the market.
During the signing ceremony, Bader Al-Salloom, CEO of BSF, and Jerry Inzerillo, CEO of Diriyah Co., emphasized the importance of this partnership in achieving sustainable development and enhancing Diriyah’s position as a prominent cultural and historical hub.
The agreement between the two parties aligns with Saudi Vision 2030’s goal of transforming the Kingdom into a global tourist destination. The Diriyah Gate Development Authority has set a precedent by blending respect for heritage with innovative, sustainable ventures, such as Al-Bujairi Terrace, which has become a major tourist attraction since its opening in 2022.
The deal is also part of BSF’s initiatives to back significant development projects that boost infrastructure, promote tourism, and drive economic growth in Saudi Arabia, the bank said in a statement.
The Wadi Safar project, introduced in December 2023 by the DGDA, is one of the three main initiatives under the Diriyah Co’s development plan.
It covers an area of approximately 62 sq. km and is set to become an upscale residential community, including high-end hospitality facilities, recreational and sports venues, and advanced commercial and retail spaces.
The project will offer premium real estate units designed to cater to the needs of both investors and visitors. Moreover, Wadi Safar’s gated community will serve as an oasis within Riyadh, featuring three major resorts: Six Senses, Aman, and Oberoi.
It is also the location for the ongoing development of the Greg Norman-designed championship signature golf course and Royal Diriyah Golf Club.
The Diriyah development project aims to generate around 178,000 job opportunities and is expected to contribute SR18.6 billion to the Kingdom’s gross domestic product upon completion.
UAE joins dividend surge as global payouts hit record $1.75tn in 2024
RIYADH: The UAE was among 17 countries setting new dividend records in 2024 as global payouts surged to a record $1.75 trillion, marking a 6.6 percent increase from the previous year, a new report showed.
According to research by trading platform eToro, UAE-listed companies maintained steady dividend distributions, driven by strong performances in the banking, energy, and real estate sectors.
This comes as Saudi-listed companies also made significant dividend moves in 2024, with energy firm Aramco declaring a total payout of $85.4 billion despite a drop in net profit, while Al Rajhi Bank’s total shareholder payments reached SR10.84 billion ($2.89 billion), combining a first-half cash dividend of SR5 billion and a second-half payout of SR5.84 billion.
“The financial sector has been a standout performer, with UAE banks benefiting from higher interest rates and economic expansion. Abu Dhabi Islamic Bank, for instance, raised its dividend payout to 50 percent of its annual profit, reflecting the sector’s robust earnings growth,” said Josh Gilbert, a market analyst at eToro.
Energy companies also played a significant role, with ADNOC Gas announcing a $3.41 billion dividend, supported by high oil prices and a commitment to 5 percent annual dividend growth.
In the real estate sector, Emaar Properties doubled its dividend to 8.8 billion dirhams ($2.4 billion), backed by record property sales and strong market demand.
For income-focused investors, dividends remain a core element of long-term strategies, providing consistent cash flow and potential for compounding returns.
“While 2024 saw record dividend distributions, certain increases, such as Emaar’s 100 percent payout of its share capital, may not be repeated annually. These sectors are cyclical, and dividends could fluctuate with market conditions,” Gilbert added.
Despite concerns about sustainability, UAE companies’ focus on shareholder returns highlights the market’s resilience. The country’s dividend growth outlook remains positive, supported by strong corporate earnings, favorable government policies, and continued investor interest.
Whether targeting high yields or steady income, the UAE remains an attractive market for global investors.
Lebanon finalizes 22 deals with Saudi Arabia ahead of high-level visit
RIYADH: Lebanon has finalized 22 cooperation agreements with Saudi Arabia, setting the stage for a high-level visit next month to strengthen economic ties.
The delegation could be led by President Joseph Aoun, Prime Minister Nawaf Salam, or both, according to Lebanese Deputy Prime Minister Tarek Mitri in an interview with Asharq.
This comes as Saudi Crown Prince Mohammed bin Salman hosted President Aoun at the Royal Court in Al-Yamamah Palace on March 3 — Aoun’s first foreign visit since taking office — where they discussed Lebanon’s ongoing crisis and regional developments.
The agreements, covering sectors from agriculture to intellectual property, are seen as crucial to securing broader international aid for Lebanon’s struggling economy.
“This is a legitimate approach, and we must earn the trust of Arab nations and the international community,” Mitri said, emphasizing that Saudi Arabia’s support is vital for unlocking further international aid. He confirmed that the 22 agreements are fully drafted and ready for signing.
On his arrival, Aoun had expressed hope that his talks with the crown prince would pave the way for a follow-up visit to sign agreements aimed at strengthening cooperation between the two nations.
The deals cover a wide range of sectors, including intellectual property, consumer protection, and environmental management, as well as agriculture and water resources, Rabih El-Amine, chairman of the Lebanese Executives Council, told Arab News earlier this month.
El-Amine also pointed to agreements involving the Ministry of Information, the General Directorate of Civil Aviation, and Banque du Liban.
Mitri further revealed that Lebanon is working on an independent fund — separate from government institutions handling refugee affairs — in partnership with international organizations to oversee post-war reconstruction efforts. This move aims to boost credibility with donors, especially in the wake of the recent Hezbollah-Israeli conflict.
A World Bank report commissioned by the Lebanese government estimates the country needs roughly $11 billion for recovery and reconstruction. The report assessed damage across 10 key sectors, projecting infrastructure repairs at $3 billion to $5 billion in public sector funding, while housing, trade, industry, and tourism would require $6 billion to $8 billion in private investments.
Mitri also noted that France has expressed willingness to host a conference to support Lebanon’s recovery. French officials have proposed preparatory meetings or merging them into a single event, though no date has been set. The conference would prioritize humanitarian aid and reconstruction, while a separate investment-focused event aims to attract international figures.
