S&P cuts China GDP forecast as calls for stimulus intensify 

S&P now expects China to log gross domestic product growth of 5.2 percent in 2023, down from an earlier estimate of 5.5 percent. (Shutterstock)
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Updated 26 June 2023
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S&P cuts China GDP forecast as calls for stimulus intensify 

BEIJING: S&P Global cut its forecast for economic growth in China this year, underscoring the uneven nature of the country’s post-reopening recovery that is spurring more calls for further stimulus. 

S&P now expects China to log gross domestic product growth of 5.2 percent in 2023, down from an earlier estimate of 5.5 percent. It was the first such cut by a global credit ratings agency this year and follows lowered predictions by Goldman Sachs and other major investment banks. 

“China’s key downside growth risk is that its recovery loses more steam amid weak confidence among consumers and in the housing market,” S&P said in a statement on Sunday. 

The world’s second-largest economy has slowed in recent months after coming back to life with the lifting of three years of restrictive zero-COVID policies. In May, property investment slumped further, industrial output and retail sales growth missed forecasts, and youth unemployment hit a record 20.8 percent. 

Forecasts for China GDP growth this year range between 4.4 percent and 6.2 percent. 

S&P said likely measures to bolster the economy could include “easing housing purchasing restrictions and mortgage down-payment requirements, expanding credit and infrastructure financing and, perhaps, fiscal support for consumption.” 

Ning Jizhe, a senior economic official with the country’s top political advisory body and the former head of China’s statistics bureau, is among the policy advisers calling for more supportive measures to be rolled out. 

“It is better to introduce measures sooner than later,” he said at a forum in Beijing on Sunday, adding that the impact of the measures “ought not to be small.” 

Last week, China cut its key lending benchmarks, the first such reductions in 10 months. A week earlier, the People’s Bank of China lowered short- and medium-term policy rates. 

The world’s second-biggest economy will roll out more stimulus this year, sources involved in policy discussions have said. 

Last week, three major state-run securities newspapers published front-page articles that cited economists as saying that the PBOC will likely further ease monetary policy. 

And on Sunday, state-controlled Global Times painted a grim picture of the economy, reporting that many graduates are visiting temples to pray amid rising anxiety over finding a job. 

Markets broadly expect stimulus policies to be unveiled after a regular meeting of the Communist Party’s political bureau in July. 

“The government is allowing more calls from state media to prepare public opinion for that (politburo) meeting and raise expectations (for more stimulus),” said Nie Wen, a Shanghai-based economist at the investment firm Hwabao Trust.  

Further highlighting pessimism over the economy, China and Hong Kong stocks slumped on Monday after disappointing domestic tourism figures for last week’s three-day Dragon Boat Festival, while the yuan also weakened against the dollar. 


BNY gets license for Saudi regional HQ as global banks grow presence

Updated 5 sec ago
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BNY gets license for Saudi regional HQ as global banks grow presence

DUBAI: Bank of New York Mellon has received a license to set up a regional headquarters in Saudi Arabia, it said on Thursday, joining others lured by incentives as the Kingdom seeks to boost its appeal as a financial hub.

Riyadh has been looking to attract more companies to set up their regional headquarters by offering tax breaks as Crown Prince Mohammed bin Salman looks to wean the economy off oil by attracting foreign investment.

Saudi Arabia’s new rules mandate foreign firms to have regional headquarters in the Kingdom before they can access lucrative government contracts.

In May 2024, Goldman Sachs received a license to set up its regional headquarters in Riyadh. US lender Citigroup secured a similar approval late last year.

The Middle East has emerged as a crucial growth market for global banks like BNY, driven by a surge in sovereign wealth fund activity, large-scale infrastructure investments, and deepening capital markets across the Gulf.

As regional economies diversify beyond oil and attract foreign capital through reforms and regulatory upgrades, international financial institutions are ramping up their presence to tap into new business opportunities in asset servicing, custody, and advisory.

The new regional headquarters in Riyadh will offer strategic, administrative and corporate support for BNY’s operations across the Middle East, the custodian bank said. 


Saudi Arabia’s net FDI up 26%: GASTAT

Updated 49 min 26 sec ago
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Saudi Arabia’s net FDI up 26%: GASTAT

RIYADH: Net foreign direct investment into Saudi Arabia reached SR22.1 billion ($5.89 billion) in the fourth quarter of 2024, representing a rise of 26 percent compared to the previous three months, newly released official data showed. 

According to the General Authority for Statistics, this figure was the highest level across the year, surpassing the SR15.5 billion seen in the first three months of 2024, the SR19 billion recorded in the second quarter, and the SR17.5 billion witnessed in the third.

Saudi Arabia is aiming to attract $100 billion in FDI a year by the end of this decade as it seeks to make significant strides in diversifying its economy and reducing its decades-long dependence on crude revenues.

When it came to inflows, GASTAT revealed SR23.8 billion was recieved in the final three months of 2024, marking a 17 percent rise from the third quarter. 

The value of FDI outflows stood at SR1.8 billion during the fourth quarter, marking a decrease of 39 percent compared to the previous three months. 

Comparison with 2023

The total net value of FDI in the fourth quarter was down 13 percent compared to the same period of 2023, where the figure stood at SR25.5 billion.

Compared to the final quarter of 2023, the value of inflows declined by 11 percent in the last three months of 2024. 

GASTAT added that the value of outflows registered a growth rate of 20 percent compared to the same period of 2023. 

Saudi Arabia’s FDI ambitions gain momentum

The latest figures come after Saudi Arabia rose to 13th place in Kearney’s 2025 Foreign Direct Investment Confidence Index, published in April. 

This is up one spot from last year and also means the Kingdom retained its position as the third-most attractive emerging market, signaling continued global confidence in its transformation strategy.

Kearney said that the advancement of Saudi Arabia in the ranking reflects the nation’s bold, reform-driven approach to building an internationally competitive, future-ready economy. 

In October, the Kingdom also approved an updated investment law to enhance FDI flows, with the Ministry of Investment stating that it would boost transparency and simplify the investment process.

The rule also promises enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers. 


Trump says he has ‘potential deals’ with India, South Korea, Japan

Updated 01 May 2025
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Trump says he has ‘potential deals’ with India, South Korea, Japan

WASHINGTON: President Donald Trump said on Wednesday that he has “potential” trade deals with India, South Korea and Japan as he seeks to convert his tariff policy into trade agreements.

At a town hall on the NewsNation television network, Trump was asked when he would be announcing agreements with those three countries.

“We have potential deals” with them, he said.

Trump said he was in no rush to conclude the deals because the US is reaping the benefits of the tariffs he has imposed.

“I’m in less of a hurry than you are. We are sitting on the catbird seat. They want us. We don’t need them,” he said.
 


Eric Trump confirms commencement of pre-construction works on Jeddah Tower

Updated 01 May 2025
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Eric Trump confirms commencement of pre-construction works on Jeddah Tower

RIYADH: The much-anticipated Trump Tower Jeddah has entered the pre-construction phase, confirmed Eric Trump, son of the US president, marking a major step forward for one of Saudi Arabia’s most high-profile luxury developments.

Set to rise 47 floors along the Red Sea coast, the building is being developed by London-listed Dar Global in partnership with the Trump Organization.

The project will include high-end residences and is intended to enhance the luxury housing landscape in the Kingdom’s western port city. According to Trump, the development will involve an investment of “many, many, many hundreds of millions of dollars.”

“The building (Trump Tower) in Jeddah is absolutely amazing. It’s one of the most beautiful buildings anywhere in the world, and we just started,” Trump, who is also the executive vice president of the Trump Organization, said in a video interview with Al-Eqtisadiah.

He added: “We’ve got all the plans and we just started the pre-construction works. This is going to be by far the nicest building in Jeddah and really a building that we’re incredibly proud of as a family.”

The Jeddah tower is the second major project between Dar Global and the Trump Organization, following the Trump International Oman at the $4 billion AIDA development.

Speaking during the launch of Trump Tower Jeddah in December, Dar Global CEO Ziad El-Chaar said: “Jeddah is undergoing a remarkable evolution, moving from traditional housing to dynamic high-rises, mixed-use developments that reflect modern living preferences.”

Trump Tower Jeddah marks the latest regional expansion for the real estate brand, coming on the heels of the recently launched Trump International Hotel and Tower Dubai — the first branded residential tower on the city’s iconic Sheikh Zayed Road.

The Dubai property is part of Dar Global’s growing premium portfolio and underscores the Trump Organization’s deepening ties in the Gulf.

Speaking about the Dubai project during his regional tour, Trump said: “The opportunities are endless. You can build the greatest buildings anywhere in the world, and that’s what we’re going to do.”

He added: “Trump International Hotel and Tower Dubai (is) the best building anywhere you buy, the best hotel. We’re going to redefine the standard, and I love doing it here.”


Closing Bell: Saudi main index closes in red at 11,671 

Updated 30 April 2025
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Closing Bell: Saudi main index closes in red at 11,671 

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 74.62 points, or 0.64 percent, to close at 11,671.58. 

The total trading turnover of the benchmark index was SR6.94 billion ($1.85 billion), as 47 stocks advanced, while 201 retreated. 

The MSCI Tadawul Index decreased by 4.89 points, or 0.33 percent, to close at 1,488.88. 

The Kingdom’s parallel market Nomu dipped, losing 54.20 points, or 0.19 percent, to close at 28,277.17. This came as 24 stocks rose, while 49 fell.

The best-performing stock on the main index was Jamjoom Pharmaceuticals Factory Co., with its share price surging by 9.91 percent to SR173. 

In the first quarter of 2025, the company’s net profit rose 204.26 percent quarter-on-quarter to SR157.03 million, according to a filing on the stock exchange. The group attributed the increase to higher sales and more efficient absorption of operating expenses, resulting in strong operating leverage. 

MBC Group Co. recorded the day’s steepest decline, with its share price slipping 4.42 percent to SR41.10. 

Advanced Petrochemical Co. announced its interim financial results for the first three months of the year, reporting a net profit of SR72 million — a 224.1 percent increase from the same quarter last year. 

Americana Restaurants International PLC also announced its financial results for the same period, with its net profit reaching SR122.4 million in what is an annual increase of 16.5 percent.

Similarly, the company’s total comprehensive income saw a surge of 44.5 percent to SR128.13 million. Its share price traded 3.04 percent higher on the main market to reach SR2.32. 

Modern Mills for Food Products Co. also announced its interim financial results for the first three months of the year, with net profit amounting to SR65.6 million, a 29.2 percent surge compared to the previous quarter. 

The company attributed the increase to higher gross margin, operational efficiencies and lower finance cost. 

Modern Mills for Food Products Co.’s share price traded 0.26 percent higher on the main market to reach SR39. 

Banque Saudi Fransi has launched the offering of US dollar-denominated additional Tier 1 capital notes as part of its international issuance program, the bank said in a bourse filing. 

The offering, conducted under its Additional Tier 1 Capital Note Programme, targets eligible investors in Saudi Arabia and internationally, the statement added. 

The subscription period is scheduled to begin on April 30 and end on May 1, with a minimum subscription set at $200,000 and increments of $1,000 thereafter. 

The value, pricing, and yield of the perpetual instruments — which are callable after six years — will be determined based on prevailing market conditions.