KUALA LUMPUR: Malaysian former prime minister Najib Razak, fighting dozens of charges over a multi-billion-dollar graft scandal at state fund 1MDB, faces his first verdict on Tuesday in a landmark case that tests the country’s efforts to stamp out corruption and could have big political implications.
Najib was voted out in a historic 2018 election amid public anger over allegations that $4.5 billion was stolen in a globe-spanning scheme from 1Malaysia Development Berhad (1MDB), a fund he co-founded. Prosecutors allege more than $1 billion made its way into his personal accounts.
His party returned to power this year in an alliance led by Prime Minister Muhyiddin Yassin, prompting some to question how whether the return would affect several corruption cases against Najib and his allies.
For Najib, the verdict in the years-long saga, which has seen a spectacular fall from extreme opulence and a dominant position in Malaysian politics, marks a reckoning for the urbane, British-educated politician — potentially decades in jail or a partial vindication.
It also comes just four days after the announcement of a $3.9 billion settlement with Goldman Sachs in return for Malaysia dropping criminal charges against the investment bank over its role in helping 1MDB sell $6.5 billion in bonds.
Najib will first hear the verdict on seven charges he faces over receiving $9.9 million from former 1MDB unit SRC International in 2014. He has pleaded not guilty to criminal breach of trust, money laundering and abuse of power.
“We believe we have adduced more than enough evidence to cast reasonable doubt on the prosecution’s case,” defense lawyer Harvinderjit Singh said.
If convicted, Najib could face hefty fines and jail terms of as much as 15 to 20 years on each charge.
It is unclear if he would be sentenced immediately if found guilty. Singh said sentencing could be delayed or suspended due to the complex nature of the case.
The verdict and Friday’s settlement, seen as a boost to Muhyiddin’s fledgling four-month old administration, come amid speculation the prime minister may call elections soon. Muhyiddin has a slim majority in parliament, and the opposition is gearing up for polls.
Liew Chin Tong, an opposition politician, said a guilty verdict for Najib could boost Muhyiddin’s popularity. But it could also create tensions within the ruling coalition — Najib’s party is the biggest component — and increase calls for a snap election, he said.
Najib no longer leads the party but remains highly influential.
He declined to comment on the upcoming verdict but appeared relaxed on Thursday, celebrating his 67th birthday by sharing a cake with supporters at the Kuala Lumpur courthouse where he has become a regular presence the past two years.
Low, who faces charges in Malaysia and United States over his central role in the case, also denies wrongdoing. The offices of the prime minister and the attorney-general did not respond to requests for comment.
Muhyiddin this month said he would work to implement broad anti-corruption reforms, amid concerns raised by activists over the fate of several high-profile graft trials.
Prosecutors last month withdrew charges against Najib ally Musa Aman, shortly after settling a $248 million 1MDB-related case involving the ex-premier’s stepson Riza Aziz.
“If you continuously have high-profile cases being dropped, people can’t believe that,” said Transparency International Malaysia director Muhammad Mohan. “The real victory will come only when there are convictions.”
The global watchdog expects Malaysia’s ranking on its corruption perception index to fall this year.
The verdict also comes as Najib enjoys a resurgence in popularity after embarking on an extensive public makeover, adopting a more personable tone to replace his image as a wealthy elite.
He maintains an active social-media presence, hitting out at the opposition and posting light-hearted updates on Facebook, where he has over 4 million followers, more than any other Malaysian politician.
Malaysia faces crucial graft test as former PM Najib Razak’s first 1MDB verdict looms
https://arab.news/6ma32
Malaysia faces crucial graft test as former PM Najib Razak’s first 1MDB verdict looms
- Najib Razak was voted out in a historic 2018 election amid public anger
- Prosecutors allege more than $1 billion made its way into his personal accounts
Gold set for second weekly loss; US inflation data in focus
BENGALURU: Gold declined on Friday and was headed for a second straight weekly loss, as the Israel-Iran ceasefire deal and progress on a US-China trade agreement dampened safe haven demand, while investors awaited the US inflation data.
Spot gold slipped 1.2 percent to $3,288.55 per ounce as of 9:43 a.m. Saudi time. Bullion has lost 2.3 percent this week.
US gold futures fell 1.4 percent to $3,300.40.
“The market is looking quite optimistic for the risky assets, so that’s weighing on gold prices,” said ANZ Commodity Strategist Soni Kumari.
De-escalation in the Middle East after the ceasefire and the progress in US-China trade talks are diminishing uncertainty from the market, sending prices further down, Kumari added.
Iranians and Israelis have welcomed a return to normal life after 12 days of the most intense confrontation ever between the countries and a ceasefire that took effect on Tuesday.
Meanwhile, the US has reached an agreement with China on how to expedite rare earth shipments to the US, a White House official said on Thursday, amid efforts to end a trade war between the world’s two biggest economies.
Investors are awaiting the US Core Personal Consumption Expenditure data at 3:30 p.m. Saudi time for further insight into the Federal Reserve’s policy path, with analysts polled by Reuters forecasting a 0.1 percent monthly increase and a 2.6 percent annual rise.
Markets are currently pricing in a 63-basis-point rate cut this year, starting September.
US President Donald Trump says that tame inflation means the Fed should already be reducing its policy rate, but only two Fed policymakers to date have embraced the possibility of a rate cut at the central bank’s July meeting.
Spot silver fell 0.5 percent to $36.44 per ounce and platinum lost 2.8 percent to $1,378.18, after hitting its highest in nearly 11 years. Palladium gained 0.3 percent to $1,135.36, the highest since October 2024.
Oil Updates — crude set to log steepest weekly decline in 2 years as war premium vanishes
- Brent, WTI down 12 percent this week, most since March 2023
- No major supply disruption from Mid-East crisis, analysts say
SINGAPORE: Oil prices headed for their steepest weekly decline since March 2023 on Friday, as the absence of significant supply disruption from the Iran-Israel conflict saw any risk premium evaporate.
Brent crude futures rose 35 cents, or 0.52 percent, to $68.08 a barrel by 7:29 a.m. Saudi time while US West Texas Intermediate crude gained 40 cents, or 0.61 percent, to $65.64.
That put both contracts on course for a weekly fall of about 12 percent.
The benchmarks are now back at the levels they were at before Isreal began the conflict by firing missiles at Iranian military and nuclear targets on June 13.
This week began with prices hitting a five-month high after the US attacked Iranian nuclear sites at the weekend, before slumping to their lowest in over a week on Tuesday when US President Donald Trump announced an Iran-Israel ceasefire.
At present, traders and analysts said they could see no material impact from the crisis on oil flow.
“Absent the threat of significant supply disruption, we still view oil as fundamentally oversupplied, with our 2025 balances indicating a roughly 2.1 million barrels per day (bpd) surplus,” Macquarie analysts wrote in a research note on Thursday.
The analysts forecast WTI to average around $67 a barrel this year and $60 next year, raising each forecast by $2 after factoring in a geopolitical risk premium.
Small gains in prices later in the week came as US government data showed crude oil and fuel inventories fell a week earlier, with refining activity and demand rising.
“The market is starting to digest the fact that crude oil inventories are very tight all of a sudden,” said Phil Flynn, senior analyst with the Price Futures Group.
Also supporting prices was a Wall Street Journal report saying Trump planned to choose the next Federal Reserve chief earlier than usual. That fueled fresh bets on US interest rate cuts which would typically stimulate demand for oil.
Pakistani stocks decline by 715 points over profit-taking after two days of gains
- KSE-100 Index closes at 122,046.46 points, witnessing a decline of 0.58 percent, as per stock market data
- Profit-taking driven by fiscal year-end considerations, short-term portfolio rebalancing, says financial analyst
ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Thursday after two days of gains, losing 715.18 points to close at 122,046.46 points, which a financial analyst attributed to profit-taking driven by fiscal year-end considerations.
The PSX closed at 122,046.46 points when trading ended on Thursday, witnessing a negative change of 0.58 percent. The KSE-100 had closed at 122,761.64 points on Wednesday and before that on Tuesday, it surged by 6,079 points or 5.23 percent to close at 122,246 points. Analysts attributed the surge on Tuesday to the ceasefire announcement between Iran and Israel.
As many as 473 companies transacted their shares in the stock market on Thursday, with 200 of them recording gains and 237 sustaining losses, state-run Associated Press of Pakistan (APP) said, adding that the share price of 36 companies remained unchanged.
“After two consecutive sessions of strong gains, the local bourse witnessed a round of profit-taking today, driven by fiscal year-end considerations and short-term portfolio rebalancing,” Maaz Mulla, the vice president of equity sales at Topline Securities Limited, said in a statement.
Mulla said the benchmark KSE-100 index saw a “volatile ride“— climbing 656 points intraday before losing 715 points at close of business. He said the closing figure of 122,046 points reflected “a cautious investor mood” as the quarter draws to a close.
He said despite the decline at the end of the day, the overall market activity remained “vibrant.”
“Total traded volume clocked in at 750 million shares, with a traded value of PKR 29.8 billion,” Mulla said.
APP reported that the three top trading companies on Thursday were Pak Int. Bulk with 37,503,501 shares traded at Rs 8.52 per share, WorldCall Telecom with 33,285,442 shares at Rs 1.45 per share and Pervez Ahmed Co. with 32,962,174 shares at Rs 3.29 per share.
IMF raises Saudi growth forecast to 3.5% for 2025, outstripping global average
- IMF highlighted pivotal role of Vision 2030 mega projects in sustaining Kingdom’s economic momentum
- It projects Saudi economic growth will outpace global average of 2.8% in 2025
RIYADH: The International Monetary Fund has revised up its forecast for Saudi Arabia’s economic growth in 2025, raising it to 3.5 percent from the 3 percent projected in April.
In its concluding statement following an Article IV consultation, the IMF highlighted the pivotal role of Vision 2030 mega projects in sustaining the Kingdom’s economic momentum, noting its continued resilience amid lower oil prices and shifting international challenges.
The IMF projects Saudi economic growth will outpace the global average of 2.8 percent in 2025, as well as outstripping most of its Gulf peers.
“Robust domestic demand — including from government-led projects — will continue to drive growth despite heightened global uncertainty and a weakened commodity price outlook,” the IMF stated in its new report.
The fund expected this momentum, supported by the scheduled phase-out of OPEC+ production cuts, to push growth even higher to 3.9 percent in 2026 before stabilizing around 3.3 percent in the medium term.
The Saudi Ministry of Finance welcomed the IMF’s concluding statement, highlighting its confirmation of “the strong resilience of the Saudi economy in the face of global economic shocks, supported by the expansion of non-oil sector activities, containment of inflation, and a historically low unemployment rate — all aligning with the objectives of Saudi Vision 2030.”
The ministry noted the IMF’s praise for the government’s efforts to enhance public finance sustainability and resilience to shocks, as well as its recognition that strong domestic demand continues to support economic growth despite global uncertainty, reflecting the Kingdom’s continued implementation of Vision 2030 projects.
Non-oil gross domestic product growth, a key indicator of diversification success, is projected to grow at 3.4 percent in 2025.
While slightly lower than the 4.2 percent achieved in 2024, the IMF attributed this sustained performance to “continued implementation of Vision 2030 projects through public and private investment, as well as strong credit growth, which would help sustain domestic demand and mitigate the impact of lower oil prices.”
Medium-term non-oil growth is expected to approach 4 percent by 2027 before stabilizing at 3.5 percent by 2030.
The IMF also noted positive developments in the labor market and inflation. The unemployment rate for Saudi nationals fell to a record low of 7 percent in 2024, surpassing the original Vision 2030 target.
Headline inflation, despite a small rise to 2.3 percent in April, remains contained.
“Inflation would remain anchored around 2 percent, supported by a credible peg to the US dollar, domestic subsidies, and an elastic supply of expatriate labor,” the fund projected.
On fiscal policy, the IMF deemed the anticipated higher spending in 2025, leading to a deficit above budget targets, as “appropriate.”
“Given the upfront adjustment and ample fiscal buffers available, staff believes that additional spending restraint in 2025— triggered by lower-than-budgeted oil prices— is not necessary as it would make fiscal policy procyclical and exacerbate the impact on growth,” the statement added.
However, it emphasized the need for gradual fiscal consolidation over the medium term, recommending measures like non-oil revenue mobilization, removing energy subsidies, and rationalizing spending.
The IMF highlighted the banking sector’s resilience but cautioned about the risks associated with strong credit growth. “Addressing strong credit growth and associated funding pressures would help mitigate risks to systemic financial stability,” the report urged.
It welcomed the Saudi Central Bank’s recent introduction of a countercyclical capital buffer and ongoing efforts to enhance regulatory frameworks.
The fund strongly emphasized the need for continued structural reforms. “The current environment of heightened uncertainty underscores the importance of continued structural reform efforts to sustain non-oil growth and economic diversification,” the statement concluded.
It added: “The reform momentum should continue irrespective of oil price developments.”
This includes strengthening anti-corruption frameworks, enhancing human capital, improving access to finance, fostering digitalization, and deepening capital markets.
Closing Bell: Saudi main index rises to close at 11,068
- Parallel market Nomu gained 215.80 points to close at 27,053.10
- MSCI Tadawul Index rose 11.41 points to close at 1,418.88
RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 94.29 points, or 0.86 percent, to close at 11,068.27.
The total trading turnover of the benchmark index was SR5.72 billion ($1.52 billion), as 206 of the stocks advanced and 40 retreated.
The Kingdom’s parallel market Nomu gained 215.80 points, or 0.80 percent, to close at 27,053.10. This comes as 54 of the listed stocks advanced while 31 retreated.
The MSCI Tadawul Index increased 11.41 points, or 0.81 percent, to close at 1,418.88.
The best-performing stock of the day was Ades Holding Co., whose share price rose 6.97 percent to SR13.82.
Other top performers included National Gypsum Co., whose share price increased 5.66 percent to SR22.40, as well as Zamil Industrial Investment Co., which rose 5.42 percent to SR42.80.
Specialized Medical Co. recorded the most significant drop, falling 3.31 percent to SR23.36.
Saudi Advanced Industries Co. also saw its stock price fall 2.55 percent to SR26.75.
Al-Taiseer Group Talco Industrial Co.’s stock price declined 2.27 percent to SR43.10.
Dar Al-Arkan Real Estate Development Co. has closed its 14th sukuk issuance, marking the tenth tranche under its USD-denominated Islamic Sukuk Program, with a total size of SR2.81 billion, the company said in a statement to Tadawul.
The five-year sukuk, carrying an annual profit rate of 7.25 percent, was issued on June 25 and attracted strong demand from both regional and international investors. The order book reached SR10.8 billion, nearly four times oversubscribed, according to the bourse filing.
The issuance comprised 3,750 sukuk units, each with a par value of $200,000.
Dar Al-Arkan appointed Abu Dhabi Commercial Bank PJSC, Abu Dhabi Islamic Bank PJSC, Alkhair Capital, Al Rayan Investment LLC, Arqaam Capital, Bank ABC, and Dubai Islamic Bank as joint lead managers for the transaction.
Also on the mandate were Emirates NBD Capital, First Abu Dhabi Bank, J.P. Morgan, as well as Mashreq, Sharjah Islamic Bank, Standard Chartered Bank, and Warba Bank.
Shares in Dar Al Arkan ended the session marginally lower, closing at SR19.22, down 0.10 percent.
The board of directors of Sahara International Petrochemical Co., also known as Sipchem, has approved SR362 million in cash dividends for the first half of 2025, according to a statement published on Tadawul.
The payout applies to 752 million eligible shares, translating to a dividend of SR0.50 per share, or 5 percent of the share’s par value.
Shares in Sipchem closed the session higher at SR19.06, gaining 4.24 percent.
