LONDON: Big cross-border mergers in stock exchanges look “hard” given political opposition to opening up bourses to foreign ownership, London Stock Exchange Group Chief Executive David Schwimmer said on Wednesday.
“There have been some big painful failures out there in the industry,” Schwimmer told the annual FIA IDX derivatives industry conference.
The LSE has failed several times to merge with rival Deutsche Boerse, the most recent attempt ending with Schwimmer’s appointment as CEO last August. The deal failed in part because of opposition from local politicians in Frankfurt.
A former Goldman Sachs banker of 20 years, Schwimmer raised expectations of big deals, but he has instead focused on relatively modest transactions, like taking a small stake in settlement house Euroclear.
“There will continue to be this nationalistic focus on exchanges in particular. I think it’s hard to think about doing big cross-border exchange-type transactions. It just feels challenging for the industry,” Schwimmer said.
LSE has had the “luxury” of double-digit organic growth in businesses like clearing and information services for years and this is likely to “persist,” Schwimmer said.
M&A is part of the toolkit, but the exchange will be “careful about it, be very strategic about it, very disciplined about it,” Schwimmer said.
Curve Global, 40% owned by the LSE and aimed at breaking the dominance of Deutsche Boerse and ICE in interest rate futures in Europe, was finally making headway after “bumping along the bottom” since its launch in 2016, he said.
“We are getting traction now,” Schwimmer said.
After its launch market participants became tied up with preparing for the European Union’s new MiFID II securities rules and then for Brexit, he said.
“As we got to the end of last year and the beginning of this year, we have seen a substantial pick-up in volume, a couple of hundred percent growth rate on an annualized basis.”
Market share is about 10% in some products, rising to 40% in futures based on Sonia, the new benchmark for replacing sterling-denominated Libor, he said.
“I would attribute it to market desire to have competition,” Schwimmer said.
The LSE is “very prepared” for Brexit, he added. The exchange has had to open an EU base in Amsterdam for its London-based pan-European share trading platform Turquoise.
Schwimmer expects the LSE’s clearing house LCH in London, which dominates euro-denominated clearing in Europe, to obtain permanent EU authorization to continue serving customers in the bloc after Brexit.
London Stock Exchange CEO says ‘hard to think’ about big mergers
London Stock Exchange CEO says ‘hard to think’ about big mergers
- Schwimmer raised expectations of big deals, but he has instead focused on relatively modest transactions, like taking a small stake in settlement house Euroclear
- The LSE has failed several times to merge with rival Deutsche Boerse, the most recent attempt ending with David Schwimmer’s appointment as CEO last August
Oil Updates — crude steadies as market awaits fresh US tariffs
- Concerns remain on how fresh US tariffs will be implemented
- Some analysts caution about bearish impact on oil prices from demand standpoint
SINGAPORE: Oil prices steadied in thin trading on Wednesday after falling in the previous session on concerns that new US tariffs, set to be unveiled at 11:00 p.m. Saud time, may deepen a global trade war that could limit crude demand.
Brent futures were unchanged at $74.49 a barrel by 9:22 a.m. Saudi time after slipping 0.4 percent on Tuesday. US West Texas Intermediate crude futures rose 3 cents to $71.23 after dropping 0.4 percent. Prices settled at their highest in five weeks on Monday.
The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details about the size and scope of the trade barriers.
“Oil prices increased nearly 2 percent in March but have remained steady since as markets await clarity on Trump’s universal tariff plans ahead of ‘Liberation Day.’ The thin trading volumes in the oil market indicate rising concerns about these tariffs, despite some positive demand signals from mainland China,” said Phillip Nova’s senior market analyst Priyanka Sachdeva.
At 9:23 a.m. Saudi time, Brent trading volumes were at 13,936 lots for June, compared with 672,617 lots of open interest for the same month, ICE data on the LSEG pricing platform showed.
For weeks, Trump has touted April 2 as “Liberation Day,” which would bring new duties that could rattle the global trade system.
“The (tariff) announcement could impact prices either to the upside or the down, although the balance of risk lies to the downside, given that weaker-than-expected tariff measures are unlikely to drive a significant rally in Brent, while stronger-than-expected measures could trigger a substantial selloff,” BMI analysts said in a note.
The declines were offset by threats by Trump to impose secondary tariffs on Russian oil, and as he ramped up sanctions on Iran on Monday as part of his administration’s “maximum pressure” campaign to cut its exports.
“Should the tariff pressures prove successful for Trump and enable a Russia-Ukraine ceasefire, there is a scenario where these punitive measures could be short-lived, with tariffs potentially bullish for crude oil and bearish for products,” said Rystad Energy’s Vice President of commodity markets, Janiv Shah.
“So far, oil prices have remained muted, awaiting an official reaction from major importing nations on the newly proposed tariffs.”
US oil and fuel inventories painted a mixed picture about supply and demand in the world’s biggest producer and consumer.
US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources, citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks fell by 11,000 barrels, the sources said.
Official US crude oil inventory data from the Energy Information Administration are due later on Wednesday.
Saudi Jameel Motors to enter South African market by distributing China’s Changan vehicles
RIYADH: Saudi Arabia’s Jameel Motors has entered the South African market, securing exclusive rights to distribute vehicles from Chinese company Changan.
The firm, owned by Saudi Arabia's Abdul Latif Jameel Group, has signed a deal to distribute SUVs, sedans, pickups, and electric vehicles in the African country, according to a statement.
South Africa, the continent’s largest automotive market, presents a strong long-term investment opportunity, driven by growing demand for affordable, tech-enabled vehicles.
The country saw a 18.3 percent year-on-year increase in new passenger car sales in the country in January.
In a statement, Jasmmine Wong, CEO — Mobility at Abdul Latif Jameel, said: “We are thrilled to announce Jameel Motors’ market entry to South Africa, especially as we do so with Changan Automobile, a forward-thinking automotive player with exceptional products.”
Wong added: “We are looking forward to driving long-term growth in the market and empowering drivers across South Africa with expanded and superior personal mobility choices.”
Jameel Motors’ commitment includes creating jobs and developing local dealerships, contributing to the country’s economic growth.
Under the terms of the newly signed agreement, Jameel Motors will initially focus on the distribution of Changan and Deepal products.
Changan offers sedans, SUVs, and pickup combustion engine models, while Deepal focuses on new energy cars.
Building on its strong track record, Jameel Motors is well-positioned to meet local customer preferences, with vehicles expected to be available for purchase in the fourth quarter of 2025.
Xiao Feng, general manager at Changan Automobile Middle East and Africa business unit, said: “This is a new milestone for our business in South Africa. Changan Automobile, as a leading Chinese automotive company, has been committed to building a world-class automotive brand.”
Feng added: “We are confident that, through the strategic cooperation with Jameel Motors, we will be a key player in the South African market.”
Jameel Motors in South Africa will be led by Marinus Venter, an expert with 18 years of experience in leading automotive brands.
“I am honored to join a business that is building on 70 years of automotive excellence, as we introduce Changan and Deepal vehicles to South Africa,” Venter said.
“By leveraging Jameel Motors’ extensive experience and Changan Automobile’s renowned focus on safety, quality, and technology, I believe we can effectively meet the diverse automotive demands of South African drivers and deliver a positive market experience,” the country manager at Jameel Motors South Africa added.
Saudi MSME lending hits $94bn driven by government-backed reforms
RIYADH: Credit facilities extended to micro, small, and medium enterprises in Saudi Arabia grew by 27.62 percent year on year in 2024, totaling SR351.7 billion ($93.8 billion), according to official data.
The Kingdom’s central bank, also known as SAMA, revealed that 94.82 percent of these loans were provided by Saudi banks, while finance companies contributed 5.18 percent.
MSME lending made up 9.4 percent of banks’ and 18.9 percent of finance companies’ loan portfolios in 2024, reflecting growing alignment with the government’s Vision 2030 target of allocating 20 percent of credit to this vital sector.
In 2024, medium-sized enterprises received the largest share of credit facilities, totaling 53.23 percent, or SR187.21 billion.
Micro enterprises — those generating up to SR3 million in revenue with a workforce of no more than five employees — saw substantial growth, with credit increasing by 70 percent to SR42.32 billion, despite holding a smaller overall share.
Credit to small enterprises, which made up 34.74 percent of MSME financing, rose by 32.4 percent to SR122.17 billion during the same period.
The sharp increase in bank lending to Saudi Arabia’s SMEs aligns closely with the Kingdom’s Vision 2030 objective of raising the sector’s contribution to gross domestic product to 35 percent.
To help achieve this target, Saudi banks are increasingly extending credit to small businesses, supported by government-backed incentives such as the Kafalah loan guarantee program, which operates under the supervision of Monsha’at.
Through Kafalah, the government guarantees up to 80 percent of loans extended to eligible SMEs, significantly reducing the risk for commercial banks and encouraging broader lending.
The SME Bank plays a complementary role by targeting underserved and high-risk segments through alternative financing solutions, such as debt-based crowdfunding.
In its latest move, the institution allocated SR240 million in partnership with fintech platforms Manafa, Lendo, and Tameed, enabling short-term, flexible financing of up to SR1 million for qualifying MSMEs.
Together, these efforts are expanding access to capital across the SME landscape, supporting entrepreneurship, job creation, and economic diversification.
According to the latest report by Monsha’at, in the fourth quarter of 2024, the Kingdom saw a 67 percent quarter-on-quarter surge in new commercial registrations, totaling more than 160,000 new businesses, bringing the total to over 1.6 million registered enterprises nationwide.
The rise was particularly strong in e-commerce, with a 10 percent increase in new digital business registrations, pushing the total number of e-commerce firms to 40,953 by the end of the year.
Riyadh province led the growth, accounting for 39 percent of all new registrations, followed by Makkah with 17 percent, the Eastern Province with 16 percent, and smaller but growing contributions from regions like Qassim and Asir.
This surge in new business formation reflects increasing entrepreneurial activity across the Kingdom — a trend aligned with goals to diversify the economy and build a thriving private sector.
The synchronized rise in both entrepreneurial activity and credit availability reflects a maturing SME ecosystem and a coordinated national strategy to fuel private sector-led growth.
New laws simplifying Saudi business registration to take effect
RIYADH: Saudi Arabia is set to introduce significant changes to its business registration system when the new Law of Commercial Register and Law of Trade Names take effect on April 3.
Abdulrahman Al-Hussein, the Ministry of Commerce’s official spokesperson, highlighted that one of the major changes includes the abolition of subsidiary registers, making a single commercial register sufficient, the Saudi Press Agency reported.
The laws, announced in September, also eliminate the requirement to specify the city of registration, meaning a single commercial registration will be valid across all regions of the Kingdom, Al-Hussein added.
The changes come as Saudi Arabia saw a 60 percent increase in commercial records in 2024, with 521,969 issued compared to the previous year, according to the Ministry of Commerce.
The moves also align with the Kingdom’s economic diversification efforts, aimed at reducing reliance on oil and increasing the private sector’s contribution to the gross domestic product from 40 percent to 65 percent by 2030.
Al-Hussein said the Law of Commercial Register “cancels the expiration date for the commercial register, requiring only an annual confirmation of the data.”
He underlined that the commercial registration number will now serve as the establishment’s unified number, starting with “7.”
Existing subsidiary registers will have a five-year grace period to comply with the new regulations.
Additionally, the updated Trade Names Law now permits the reservation and registration of trade names in English, including letters and numbers, a shift from the previous rule, which only allowed Arabic names without foreign characters or digits.
The change also allows trade names to be managed separately from the establishment, enabling their ownership transfer. It prevents the registration of identical or similar names for different businesses, regardless of their activities.
Al-Hussein added that this law includes provisions for reserving family names as trade names and sets standards for prohibited or misleading names.
The Saudi Cabinet approved these changes on Sept. 17, with the government aiming to streamline business operations and improve the overall working environment.
In a post on his X account at the time, Commerce Minister Majid bin Abdullah Al-Qasabi emphasized that the changes would streamline the procedures for reserving and registering trade names, thus protecting and enhancing their value, in line with the economic and technological advancements outlined in Vision 2030.
Saudia launches direct flights to Bali
RIYADH: Saudia has launched a scheduled service to Bali with three weekly flights from Jeddah, marking the airline’s second regular destination in Indonesia after Jakarta.
The inaugural flight, SV856, departed from King Abdulaziz International Airport in Jeddah on March 31, operated by a Boeing B787 Dreamliner.
Saudia stated in a release that flight times have been coordinated to connect with its wider domestic and international network, as well as with services operated by members of the SkyTeam alliance.
The addition of Bali is part of a broader plan announced in February to introduce 11 new destinations in 2025, including Vienna, Venice, and Larnaca, as well as Athens, Heraklion, Nice, Malaga, and El-Alamein.
The expansion comes as the airline posted a 16 percent year-on-year increase in international passenger traffic in 2024 — growth that aligns with Saudi Arabia’s National Tourism Strategy, which targets 150 million visitors annually by 2030, and aims to create 1.6 million jobs.
Saudia is working to enhance its competitive position and international connectivity by adding both scheduled and seasonal destinations, the release stated.
The Bali route will be served by its Boeing B787 Dreamliner aircraft, which features advanced technologies, in-flight entertainment tailored for a wide range of passengers, spacious seating, and other onboard services.
Currently operating a fleet of 147 aircraft from Boeing and Airbus, Saudia plans to expand capacity and route coverage with the addition of 118 new planes.
As part of its 2025 network expansion strategy, Saudia also plans to add Antalya in Turkiye and Salalah in Oman, increasing its global footprint to over 100 destinations across four continents.
The move supports the Kingdom’s Air Connectivity Program, which has introduced more than 60 new direct routes since its launch in 2021.
With more than 530 daily flights, Saudia’s ongoing international development plan aims to increase its global market share and strengthen connectivity between Saudi Arabia and the world.
According to the General Authority of Civil Aviation, flight operations in the Kingdom reached approximately 905,000 in 2024, reflecting an 11 percent year-on-year increase.
This included 474,000 domestic flights and 431,000 international flights. Air connectivity expanded by 20 percent, linking Saudi Arabia to over 170 destinations worldwide.
