DUBAI: Iraq said on Thursday it would make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past period under the OPEC+ supply reduction pact.
Iraq says the oil output cut in August will be over and above the agreed cut for August, according to a statement by Iraq’s oil ministry and state oil marketer SOMO.
The Organization of the Petroleum Exporting Countries and allies, known as OPEC+, began a record supply cut in May to bolster oil prices hammered by the coronavirus crisis. Iraq is cutting output by 1.06 million bpd under the deal.
Iraq says it is committed to the OPEC+ agreement and will boost compliance. Iraq had told OPEC+ it would make up for over-production in May and June through larger cuts in later months.
Iraq’s total oil exports for July averaged 2.763 million barrels per day (bpd).
Iraq says will make additional oil cuts in August
https://arab.news/v35st
Iraq says will make additional oil cuts in August
- Iraq says the oil output cut in August will be over and above the agreed cut for August
Saudi Social Development Bank and SNB to launch financing portfolio for entrepreneurs
- Agreement set to provide $2.66 million in funding to entrepreneurs
- Newly launched portfolio will provide individuals with entrepreneurial knowledge
RIYADH: Saudi Arabia’s Social Development Bank has signed an agreement with the Saudi National Bank to launch a financing portfolio to support entrepreneurship in the Kingdom.
The financing portfolio is being introduced as part of SNB’s Ahalina program, with the agreement set to provide SR10 million ($2.66 million) in funding to entrepreneurs, according to the Saudi Press Agency.
The deal was inked against rising entrepreneurship in Saudi Arabia, with the number of active commercial registrations in the Kingdom reaching 1.51 million by the end of the third quarter of the year.
According to the SNB website, it launched the Ahalina strategy to empower various society groups, “converting them into positive and developmental energies capable of supporting the national economy.”
Tareq Al-Sadhan, the CEO of SNB, said: “Through the Ahalina program, we seek to consolidate our commitment to the community by supporting entrepreneurs and start-ups, which enhances our contributions to achieving sustainable development, and confirms the role of social responsibility as an integral part of our corporate strategy.”
The newly launched portfolio will also provide individuals with entrepreneurial knowledge. It will help them acquire the necessary skills to secure project funding and contribute to Saudi Arabia’s socio-economic development.
The agreement also aligns with the more expansive goal of SNB, which is to empower individuals and institutions and provide community support in all regions of the Kingdom, contributing to Saudi Arabia’s Vision 2030 program, the SPA report added.
“This agreement represents an extension of the bank’s march toward achieving sustainable development, promoting entrepreneurship, and supporting Saudi youth to build sustainable projects with a tangible impact,” said Sultan Al-Hamidi, the CEO of SDB.
Under the deal, both SNB and SDB will work to enhance cooperation between the public and private sectors to boost the entrepreneurial landscape in the Kingdom.
In November, Saudi Arabia’s General Authority for Small and Medium Enterprises, also known as Monsha’at, organized the Biban 24 event to support SMEs in the Kingdom, where agreements worth SR35.4 billion were signed.
During the event, Sami bin Ibrahim Al-Husseini, the governor of Monsha’at, said that such events are crucial to strengthen Saudi Arabia’s entrepreneurial framework and are aligned with the nation’s Vision 2030 objectives to boost the SME sector’s contribution to the national gross domestic product.
Oil Updates — crude eases from highest in weeks, investors eye Fed rate cuts
SINGAPORE: Oil futures eased from their highest levels in weeks as traders took profit while waiting for a meeting of the Federal Reserve later this week for indication of further rate cuts, according to Reuters.
Falls were limited, however, by concerns of supply disruptions in the event of more US sanctions on major suppliers Russia and Iran.
Brent crude futures fell 21 cents, or 0.3 percent, to $74.28 a barrel by 07:24 a.m. Saudi time after settling at their highest level since Nov. 22 on Friday.
US West Texas Intermediate crude dropped 30 cents, or 0.4 percent, to $70.99 a barrel after reaching its highest settlement level since Nov. 7 in the previous session.
“After last week’s +6% rally, and with crude oil trading towards the top of recent range highs, we are likely seeing some light profit-taking,” IG market analyst Tony Sycamore said.
“Also, it is likely a lot of trading books at banks and funds shut up shop at the end of last week and have reduced appetite for positions over the festive season.”
Oil prices were bolstered by new EU sanctions on Russian oil last week and expectations of tighter sanctions on Iranian supply, he added.
US Treasury Secretary Janet Yellen told Reuters on Friday that the US is looking at further sanctions on “dark fleet” tankers and will not rule out sanctions on Chinese banks as it seeks to reduce Russia’s oil revenue and access to foreign supplies to fuel its war in Ukraine.
Fresh US sanctions on entities trading Iranian oil are already driving prices of the crude sold to China to the highest in years. The incoming Trump administration is expected to ramp up pressure on Iran.
Oil prices were also supported by key central bank interest rate cuts in Canada, Europe and Switzerland last week and expectations the Fed will cut rates this week, Sycamore said.
The Fed is expected to cut interest rates by a quarter of a percentage point at its Dec. 17-18 meeting which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.
Lower interest rates can boost economic growth and demand for oil.
Still, forecasts of ample supply in 2025 by the International Energy Agency and CNPC’s forecasts of oil demand decline in China, the world’s second-largest consumer, after consumption peaked in 2023 are factors that will continue to weigh on global oil markets.
PIF’s Dan Co. to launch resort in Al-Ahsa to boost Saudi tourism sector
RIYADH: Saudi Arabia’s tourism sector is poised for significant growth with the announcement of a new resort project in Al-Ahsa by Dan Co., a subsidiary of the Public Investment Fund.
The initiative is part of the Kingdom’s broader strategy to enhance the tourism industry and elevate hospitality standards across the country.
The resort will integrate sustainability, innovation, and high-quality service, in line with Saudi Arabia’s Vision 2030 objectives. By focusing on these key principles, the project aims to enhance the appeal of Al-Ahsa as both a local and international tourism destination.
This move is also aligned with the Kingdom’s ambitious goal of attracting 150 million visitors by 2030 and increasing the tourism sector’s contribution to the national gross domestic product from 6 percent to 10 percent.
Saad Al-Kroud, chairman of Dan Co., highlighted that the resort will leverage Al-Ahsa’s unique natural beauty and rich cultural heritage.
The project will promote rural, recreational, and ecotourism, offering visitors a variety of experiences that showcase the region’s diverse landscapes and agricultural legacy.
“By focusing on the natural environment and cultural heritage, this development will offer distinctive experiences that cater to a wide range of interests, further solidifying Al-Ahsa’s position as a key destination in Saudi Arabia’s tourism map,” Al-Kroud said.
As part of PIF’s broader vision to transform the Kingdom’s tourism landscape, Dan Co. is committed to promoting agritourism, adventure tourism, and ecotourism.
These initiatives aim to deepen the connection between visitors and nature, while creating economic opportunities for local communities and fostering sustainable development.
Through this project, Dan Co. aims not only to enhance Saudi Arabia’s tourism offerings but also to help diversify local economies and support the growth of thriving businesses in the region.
Closing Bell: Saudi main index slips to close at 12,059
- Parallel market Nomu gained 72.18 points, or 0.23%, to close at 31,173.07
- MSCI Tadawul Index lost 5.47 points, or 0.36%, to close at 1,513.54
RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 39.80 points, or 0.33 percent, to close at 12,059.53.
The total trading turnover of the benchmark index was SR3.32 billion ($885 million), as 91 of the stocks advanced and 129 retreated.
The Kingdom’s parallel market Nomu gained 72.18 points, or 0.23 percent, to close at 31,173.07. This comes as 52 of the listed stocks advanced, while 35 retreated.
The MSCI Tadawul Index lost 5.47 points, or 0.36 percent, to close at 1,513.54.
The best-performing stock of the day was Saudi Cable Co., whose share price surged 8.49 percent to SR93.30.
Other top performers included Sumou Real Estate Co., whose share price rose 6.61 percent to SR47.60, as well as Walaa Cooperative Insurance Co., whose share price surged 3.45 percent to SR18.60.
Al-Baha Investment and Development Co. recorded the biggest drop, falling 6.06 percent to SR0.31.
Riyadh Cables Group Co. also saw its stock prices fall 3.07 percent to SR145.
On the announcements front, Saudi Tadawul Group Holding Co. announced the latest development regarding the acquisition of its subsidiary, Tadawul Advanced Solutions Co., or WAMID, of 51 percent shares in Direct Financial Network Co., by announcing the acquisition of 49 percent of the entire remaining shares in Direct Financial Network Co. for SR 220.5 million.
According to a Tadawul statement, the transaction is integral to WAMID’s growth strategy, supporting the group’s ambitious strategy.
The acquisition of 100 percent of the entire shares of the issued capital of Direct Financial Network Co. will create an opportunity to build new capabilities, elevate innovation in the regional capital markets, diversify revenues, and advance the capital market.
The acquisition value will be funded by the existing Saudi Tadawul Group Holding Co. Sharia-compliant banking facilities. The transaction is also expected to have a positive financial impact on the group over time.
Saudi Tadawul Group Holding Co. ended the session at SR223, up 0.18 percent.
Mufeed Co. announced that its board of directors has decided to distribute SR33 million in cash dividends to shareholders for the first half of 2024.
A bourse filing revealed that the total number of shares eligible for dividends amounted to 6.6 million, with the dividend per share at SR5. The statement also revealed that the percentage of dividends to the share par value stood at 50 percent.
Mufeed Co. ended the session at SR76 down 10.81 percent.
Salama Cooperative Insurance Co. announced the period for rights issue trading and new shares subscription from Dec. 17-29.
According to a Tadawul statement, holders of rights may exercise their right to subscribe to new shares, in full or in part, up to the number of rights available in their portfolios. Trading rights and subscribing to new shares will be conducted according to the terms outlined in the prospectus for registered shareholders and new investors.
Salama Cooperative Insurance Co. ended the session at SR17.32, down 0.81 percent.
UAE’s proptech Stake expands to Saudi Arabia, to consider regional HQ relocation, GM says
- Hanouf Bin Saeed said move aims to capitalize on rapidly growing real estate market driven by Saudi Vision 2030 initiatives
- After a successful closure of a $14 million funding round in June, Stake officially launched its operations in the Kingdom on Dec. 9
RIYADH: UAE real estate investment platform Stake is considering relocating its regional headquarters to Saudi Arabia, but no immediate plans have been finalized, according to a top official.
In an interview with Arab News, Hanouf Bin Saeed, general manager of Stake Saudi Arabia, said the move would align with the company’s strategy to expand its footprint in the Kingdom, capitalizing on the rapidly growing real estate market driven by Saudi Vision 2030 initiatives.
“In our next step, we aim to move the regional headquarters to Saudi Arabia,” she told Arab News. “Today, with the initiatives happening, it could be very soon. We don’t have a timeline, but our focus today is to grow our footprint in Saudi, build our team, (and) ensure that we have robust, stable growth in Saudi Arabia to be able to capitalize on opportunities and an unparalleled market that is happening in the real estate market today.”
Bin Saeed said the relocation is merely a possibility and the company’s immediate plans focus on expansion and building a solid foundation in the Kingdom.
After a successful closure of a $14 million funding round in June, Stake officially launched its operations in Saudi Arabia on Dec. 9, debuting with its first real estate investment opportunity, which was already 60 percent funded as of mid-December.
The platform, originally established in the UAE four years ago, allows individual investors to invest in real estate projects.
While property investing typically involves large amounts of upfront capital and an antiquated buying process, investors globally can access real estate through Stake from as little as SR500 ($136), the company said.
According to Bin Saeed, Stake has over 800,000 users from 170 countries and has facilitated real estate transactions exceeding $130 million in gross merchandise value in the UAE market. The platform has also distributed more than $5 million in dividends to investors from rental income.
Highlighting the strategic importance of Saudi Arabia for Stake’s expansion, she underscored the transformative economic initiatives under Vision 2030, including a goal to achieve 70 percent homeownership among Saudi nationals by 2030.
“The country is injecting real estate units into the Saudi market — above 500,000 units — just to be able to reach that percentage by 2030,” she said.
The Kingdom’s booming real estate sector, driven by residential, commercial, and hospitality demand, provides fertile ground for Stake’s mission of democratizing real estate investments, she added.
“For us in Stake, our mission is fully aligned with Vision 2030 when it comes to democratizing real estate investments,” Bin Saeed said.
“This is why Stake decided to come to Saudi Arabia, bringing the solution that has been built and successful in the UAE market to Saudi Arabia and to the Saudi market to be able to capitalize on the opportunities that are coming today,” she added.
Stake is one of the few platforms regulated by the Kingdom’s Capital Market Authority to cater to non-resident foreign investors, a key competitive advantage as the Saudi government works to position the country as a global investment hub, Bin Saeed added.
The platform obtained its CMA license in July and has since established an office and local team in Saudi Arabia, while also preparing to expand its fund offerings in the Kingdom significantly.
“For Stake, as we mentioned, we just launched with a fund which is around SR200 million, and our expectation for the coming six months is to launch funds with SR1 billion amount and move forward from there,” Bin Saeed said.
Stake is also eyeing opportunities in commercial real estate and office spaces as international businesses increasingly enter the Saudi market.
The Kingdom’s plans to host the FIFA World Cup in 2034 and the associated growth in the hospitality sector are expected to further boost rental income by 30 percent to 40 percent, according to Bin Saeed.
With the Kingdom’s rapidly evolving real estate landscape, Stake sees Saudi Arabia as a cornerstone of its regional growth strategy.
Bin Saeed stressed the company’s long-term commitment, saying: “We are tapping into different options when it comes to the real estate itself and to be able to localize the market and create these opportunities.”
