RIYADH: The credit ratings of three Dubai property companies were downgraded by S&P as the coronavirus pandemic hits confidence in the retail and real estate sectors.
S&P Global Ratings reduced the credit ratings for the real estate developer Emaar Properties as well as Emaar Malls to +BB from -BBB with a negative forward outlook, adding that it sees a “weakening across all its business segments” in 2020. S&P also cut its rating for DIFC Investments to +BB from -BBB, while keeping a stable outlook.
Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices, heaping pressure on governments, companies and employees.
The ratings agency expects the emirate’s economy to shrink by 11 percent this year
“The supply-demand imbalance in the realty sector appears to have been exacerbated by the pandemic. We now expect to see international demand for Dubai’s property to be subdued, and the fall in residential prices to be steeper than we had expected, lingering well into 2021” S&P reported.
Despite easing restrictions and the opening of the economy, S&P said that overall macroeconomic conditions remained challenging.
Global travel restrictions and social distancing constraints “significantly weigh on Dubai’s tourism and hospitality sectors” the rating agency reported.
Still, Dubai’s tourism chief was upbeat on the emirate’s prospects when international tourism resumes.
“Once we do get to the other side, as we start to talk about next year and later on, we see very much a quick uptick. Because once things normalize, people will go back to travel again,” Helal Al-Marri, director general of Dubai’s Department of Tourism and Commerce Marketing told AFP in an interview.
S&P downgrades trio of Dubai developers as pandemic hits property and retail
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S&P downgrades trio of Dubai developers as pandemic hits property and retail
- Gulf states are being hit hard by the coronavirus pandemic that has come at a time of weak oil prices
World Bank to end ban on nuclear energy projects, still debating upstream gas
- World Bank to work closely with IAEA to build capacity
- Electricity demand is expected to more than double by 2035
WASHINGTON: The World Bank’s board has agreed to end a longstanding ban on funding nuclear energy projects in developing countries as part of a broader push to meet rising electricity needs, the bank’s president Ajay Banga said on Wednesday.
Banga outlined the bank’s revised energy strategy in an email to staff after what he called a constructive discussion with the board on Tuesday. He said the board was not yet in agreement on whether the bank should engage in funding the production of natural gas, and if so, under what circumstances.
The global development bank, which lends at low rates to help countries build everything from flood barriers to railroads, decided in 2013 to stop funding nuclear power projects. It announced in 2017 it would stop funding upstream oil and gas projects beginning in 2019, although it would still consider gas projects in the poorest countries.
The nuclear issue was agreed fairly easily by board members, but several countries, including Germany, France and Britain, did not fully support changing the bank’s approach to embrace upstream natural gas projects, sources familiar with the discussion said.
“While the issues are complex, we’ve made real progress toward a clear path forward on delivering electricity as a driver of development,” Banga said, adding that further discussion was required on the issue of upstream gas projects.
Banga has championed a shift in the bank’s energy policy since taking office in June 2023, arguing the bank should pursue an “all of the above” approach to help countries meet rising electricity needs and advance development goals.
In his memo, he noted that electricity demand was expected to more than double in developing countries by 2035, which would require more than doubling today’s annual investment of $280 billion in generation, grids and storage.
The Trump administration has been pushing hard for ending the ban on nuclear energy projects since taking office.
The US is the bank’s single largest shareholder — at 15.83 percent, followed by Japan with 7 percent and China with close to 6 percent — and the bank’s decision to broaden its approach to energy projects will likely please President Donald Trump, who withdrew the US from the Paris Climate Agreement and its emission-reduction targets as one of his first acts in January.
Twenty-eight countries already use commercial nuclear power, with 10 more ready to start and another 10 potentially ready by 2030, according to the Energy for Growth Hub and Third Way.
Banga said the World Bank Group would work closely with the International Atomic Energy Agency to strengthen its ability to advise on nuclear non-proliferation safeguards, safety, security and regulatory frameworks.
The bank would support efforts to extend the life of existing nuclear reactors, along with grid upgrades. It would also work to accelerate the potential of small modular reactors.
ENERGY MIX
Trump administration officials and some development experts say developing countries should not be blocked from using inexpensive power to expand their economies while advanced economies like Germany continue to burn fossil fuels.
But climate activists worry that funding more nuclear and natural gas projects will divert funds away from urgently needed efforts by developing countries to adapt to climate change and benefit from abundant alternative energy sources such as solar.
“Net zero does not mean fossil fuel free. It means, still, that there will be 20 percent energy coming from fossil fuels,” said Mia Mottley, prime minister of Barbados. “We know natural gas is that clean fuel.”
Banga said the bank’s revised strategy would allow countries to determine the best energy mix, with some choosing solar, wind, geothermal or hydroelectric power, while others might opt for natural gas or, over time, nuclear.
He said the bank would continue to advise on and finance midstream and downstream natural gas projects when they represented the least-cost option, aligned with development plans, minimized risk and did not constrain renewables.
The bank would further study evolving technologies like carbon capture and ocean energy, Banga said, adding it aimed to simplify reviews and approvals.
Banga said the bank would continue advising on and financing the retirement of coal plants, supporting carbon capture for industry and power generation, but not for enhanced oil recovery, which can typically secure commercial financing.
Oil Updates — prices ease as market assesses Middle East tension
SINGAPORE: Oil prices eased on Thursday, reversing gains made earlier in the Asian trading session, as market participants assessed a US decision to move personnel from the Middle East ahead of talks with Iran over the latter’s nuclear-related activity.
Brent crude futures were down 49 cents, or 0.7 percent, to $69.28 a barrel at 9:30 a.m. Saudi time, while US West Texas Intermediate crude was 41 cents, or 0.6 percent, lower at $67.74 a barrel.
A day earlier, both Brent and WTI surged more than 4 percent to their highest since early April.
US President Donald Trump said the US was moving personnel because the Middle East “could be a dangerous place.” He also said the US would not allow Iran to have a nuclear weapon. Iran has said its nuclear activity is peaceful.
Increased tension with Iran has raised the prospect of disruption to oil supplies. The sides are set to meet on Sunday.
“Some of the surge in oil prices that took Brent above $70 per barrel was overdone. There was no specific threat identified by the US on an Iranian attack,” said Vivek Dhar, director of mining and energy commodities research at Commonwealth Bank Australia.
Response from Iran is only contingent on US escalation, Dhar said.
“A pull back (in price) makes sense, but a geopolitical premium that keeps Brent above $65 per barrel will likely persist until further clarity on US-Iran nuclear talks is revealed,” he added.
The US is preparing a partial evacuation of its Iraqi embassy and will allow military dependents to leave locations in the Middle East due to heightened security risk in the region, Reuters reported on Wednesday citing US and Iraqi sources.
Iraq is the second-biggest crude producer after Saudi Arabia in the Organization of the Petroleum Exporting Countries.
Military dependents can also leave Bahrain, a US official said.
Prices weakened having hit key technical resistance levels during Wednesday’s rally, plus some market participants are betting on Sunday’s US-Iran meeting resulting in reduced tension, said OANDA senior market analyst Kelvin Wong.
Trump has repeatedly said the US would bomb Iran if the two countries cannot reach a deal regarding Iran’s nuclear-related activity including uranium enrichment.
Iran’s Minister of Defense Aziz Nasirzadeh on Wednesday said Iran will strike US bases in the region if talks fail and if the US initiates conflict.
US Special Envoy Steve Witkoff plans to meet Iranian Foreign Minister Abbas Araghchi in Oman on Sunday to discuss Iran’s response to a US proposal for a deal.
Separately, US crude inventories fell 3.6 million barrels to 432.4 million barrels last week, the Energy Information Administration said. Analysts polled by Reuters had expected a draw of 2 million barrels.
Saudi Arabia adds MEDEX service to Jeddah Port, linking 12 global hubs
- New service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE
- It also connects to Karachi in Pakistan, and Colombo in Sri Lanka
RIYADH: Saudi Arabia has expanded its maritime connectivity with the addition of the MEDEX shipping service at Jeddah Islamic Port, linking the Kingdom to 12 regional and international ports.
Operated by global logistics firm CMA CGM, the new service connects Jeddah to Abu Dhabi and Jebel Ali in the UAE, Karachi in Pakistan, and Colombo in Sri Lanka, according to a release by the Saudi Ports Authority, or Mawani.
The move is part of Mawani’s broader efforts to improve operational efficiency at Jeddah Islamic Port and raise Saudi Arabia’s standing in global port performance rankings.
It also supports the Kingdom’s National Logistics Strategy, which aims to increase the sector’s contribution to gross domestic product from 6 percent to 10 percent by 2030, positioning Saudi Arabia as a strategic logistics hub connecting three continents.
“This service enhances the port’s competitive advantage, facilitates global trade, opens new business horizons, and supports national exports,” Mawani said.
The MEDEX service is the 19th shipping line added to Jeddah Islamic Port since the beginning of 2025, reinforcing Saudi Arabia’s commitment to improving regional and international connectivity.
With a capacity of up to 10,000 twenty-foot equivalent units, the new service also links Jeddah to Mundra and Nhava Sheva in India, Piraeus in Greece, Malta, Genoa in Italy, Fos in France, and Barcelona and Valencia in Spain.
Headquartered in Marseille, CMA CGM Group operates in 177 countries and is the world’s third-largest shipping company. It serves more than 420 ports across five continents with a fleet of over 650 vessels.
The new service aims to boost domestic import and export activity, supporting Saudi Arabia’s broader objective of establishing itself as a global trade hub.
Jeddah Islamic Port currently features 62 multi-purpose berths, a bonded and re-export logistics area, several specialized terminals, and advanced cargo-handling equipment. It also houses two general cargo terminals, two ship repair docks, and a dedicated marine services zone. The port’s total handling capacity reaches 130 million tonnes annually.
Saudi Arabia climbed to 15th place globally in container throughput rankings in 2024, underlining its growing role as a maritime logistics powerhouse, according to Lloyd’s List, a UK-based shipping industry journal.
The report said Jeddah Islamic Port advanced to 32nd place globally, up from 41st in 2023, after handling 5.58 million containers last year — a 12.6 percent increase from the previous year.
Closing Bell: Saudi main index holds steady at 11,005
- Parallel market Nomu shed 84.03 points to close at 27,223.71
- MSCI Tadawul Index declined by 0.07 percent to end at 1,405.46
RIYADH: Saudi Arabia’s Tadawul All Share Index gained 0.49 points on Wednesday, closing at 11,005.02.
The total trading turnover of the benchmark index was SR5.60 billion ($1.49 billion), with 149 of the listed stocks advancing and 89 declining.
The Kingdom’s parallel market Nomu, however, shed 84.03 points to close at 27,223.71.
The MSCI Tadawul Index also declined by 0.07 percent to 1,405.46.
Fawaz Abdulaziz Alhokair Co., also known as Cenomi Retail, was the best-performing stock on the main market, as the company’s share price advanced by 9.93 percent to SR19.70.
Miahona Co. also saw its share price increase by 6.09 percent to SR24.38.
The stock price of Americana Restaurants International PLC advanced 5.74 percent to SR2.21.
Conversely, the share price of Elm Co. declined by 6.66 percent to SR959.20.
The top gainer on Nomu was Meyar Co., whose share price grew 20.74 percent to SR65.20.
In the parallel market, Knowledge Net Co. also saw its stock price rise by 10 percent to SR34.10.
The share price of Anmat Technology for Trading Co., which debuted on the Kingdom’s parallel market, climbed by 4.74 percent to SR9.95.
On Tuesday, Saudi Arabia’s main market also witnessed three negotiated deals worth SR23.3 million.
The negotiated deals include ACWA Power’s SR12.59 million, followed by Ades Holding Co.’s SR5.74 million, and Saudi Kayan Petrochemical Co.’s SR5 million.
A negotiated deal indicates the purchase of a stock based on an agreement between buyers and sellers, apart from the market price.
These agreements are executed under the control of Tadawul and in accordance with capital market laws and regulations.
The share price of ACWA Power declined by 5.34 percent to SR255.40.
Ades Holding Co. saw its share price drop by 0.74 percent to SR13.48.
The stock price of Saudi Kayan Petrochemical Co. edged up by 0.40 percent to SR4.96.
Saudi Arabia’s ACWA Power plans $5bn investment deal with Uzbekistan
- Uzbekistan to localize production of wind turbine components
- It will begin producing green hydrogen this month
RIYADH: Saudi utility giant ACWA Power is planning to invest $5 billion in Uzbekistan, affirming its status as the leading foreign investor in the Central Asian nation’s energy sector, according to a top official.
Speaking at the Tashkent International Investment Forum, Soumendra Rout, ACWA Power’s country head for Uzbekistan, said that this planned $5 billion deal is a part of the company’s broader strategy aimed at increasing its total commitments in the country to $15 billion, UZ Daily reported.
Being the largest foreign player in Uzbekistan’s energy sector, ACWA Power has already implemented 19 projects in the country worth a combined value of $5 billion.
Out of these 19 projects, eight are focused on renewable energy, as Uzbekistan aims to generate 40 percent of its electricity from clean sources by the end of this decade.
“We are not going to stop here. Our objective is to expand our investments. During this forum, we plan to sign another agreement with the government of Uzbekistan worth $5 billion,” said Rout.
During the forum, Rout also emphasized the importance of Islamic finance instruments in ensuring sustainable economic development, particularly among small and medium-sized enterprises.
He added that Shariah-compliant financing mechanisms are capable of offering more effective support to SMEs compared to traditional financing tools.
“We are ready to share our experience with Uzbekistan and contribute to building a more inclusive financial system,” said Rout.
During the forum, Abid Malik, president of ACWA Power for Central Asia, announced that Uzbekistan is all set to localize the production of wind turbine components, including blades and turbines.
Malik added that ACWA Power is collaborating closely with suppliers and seeks to provide technical support to local enterprises working on renewable projects in Uzbekistan.
As part of a 200-megawatt wind power project currently underway in Karakalpakstan, ACWA Power has tasked its turbine supplier with establishing local manufacturing operations in Uzbekistan.
“Our supplier is planning to begin production of wind turbines and blades within the country in the near future,” added Malik.
He further said that Uzbekistan will begin producing green hydrogen this month, with an annual production capacity of 3,000 tonnes.
“We believe this will elevate Uzbekistan’s position on the global green hydrogen map,” said Malik.
In 2023, Shavkat Mirziyoyev, president of Uzbekistan, launched a pilot green hydrogen facility in the Tashkent Region in cooperation with ACWA Power.
The $88 million project is being implemented in two phases, with production from the first phase expected to begin this month.
The production of green hydrogen aligns with Uzbekistan’s goal to achieve 20 gigawatts of clean energy capacity by 2030.
The country is also prioritizing the expansion of solar, wind, and hydroelectric energy, leveraging its natural resources to decrease reliance on fossil fuels.
In April, ACWA Power commenced commercial operations at two major wind power plants in Uzbekistan.
In December, the company also launched three renewable initiatives in Uzbekistan, including wind, solar, and battery storage facilities.
These undertakings include the Bash and Dzhankeldy Wind Power Plants, with a total capacity of 1,000 megawatts and a transmission line.
Additionally, there are the Samarkand 1 and 2 solar projects, which have a combined capacity of 1,000 MW of solar power, along with a 1,000 MWh battery energy storage system. The Tashkent BESS Project has a capacity of 500 MWh.
