QatarEnergy to charter 19 LNG more vessels expanding fleet further

QatarEnergy has finalized a number of contracts aimed at bolstering its shipping fleet, with the addition of 19 LNG vessels. Shutterstock
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Updated 31 March 2024
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QatarEnergy to charter 19 LNG more vessels expanding fleet further

CAIRO: QatarEnergy CEO Saad Al-Kaabi announced on Sunday that the company has finalized a number of charter contracts with several Asian ship owners to bolster its shipping fleet by 19 LNG vessels ahead of a massive expansion in LNG output. 

In a ceremony at its Doha headquarters, state-owned QatarEnergy signed contracts to charter six vessels from CMES LNG Carrier Investment, six vessels from Shandong Marine Energy, three vessels from MISC Berhad and four vessels from Kawasaki Kisen Kaisha and Hyundai Glovis. 

QatarEnergy had previously contracted for 77 ships to be built at Korean and Chinese shipyards in the first phases of its LNG ship acquisition program. 

QatarEnergy’s North Field expansion will boost its position as the world’s top LNG exporter. It includes eight LNG trains that will ramp up Qatar’s liquefaction capacity from 77 million tonnes per annum to 142 mtpa by 2030, an 85 percent increase in production. 


Kuwait non-oil sector maintains solid expansion while Egypt edges closer to recovery: S&P 

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Kuwait non-oil sector maintains solid expansion while Egypt edges closer to recovery: S&P 

RIYADH: Business conditions in Kuwait’s non-oil private sector continued to expand in May, while Egypt experienced a slower pace of contraction, offering tentative signs of stabilization. 

According to the latest Purchasing Managers’ Index surveys released by S&P Global, Kuwait’s PMI stood at 53.9, down slightly from 54.2 in April but remaining comfortably above the 50 no change mark. 

Meanwhile, Egypt’s PMI rose from 48.5 in April to 49.5 in May, its highest level in three months, but still below the neutral 50.0 threshold that separates growth from contraction. 

In Kuwait, non-oil firms reported strong growth in both output and new orders, extending a streak of expansion to 28 consecutive months. 

Respondents attributed the uptick to competitive pricing strategies and enhanced marketing efforts. 

Kuwait’s expansion aligns with broader economic projections by the International Monetary Fund and the World Bank, with real gross domestic product growth forecasts of 1.9 percent and 3.3 percent, respectively, in 2025. 

These projections reflect a recovery from two consecutive years of contraction, supported by rising oil production as OPEC+ cuts ease, and expanding non-oil activity led by infrastructure development and credit growth. 

“The strong growth seen in April was largely maintained in May, with companies in Kuwait again reporting sharp increases in output and new orders,” said Andrew Harker, economics director at S&P Global Market Intelligence. 

“This sustained expansion is putting pressure on firms to build capacity, and extra staff were hired accordingly in May,” he added. 

Employment rose for the third consecutive month, and the rate of job creation was the joint-fastest recorded since the PMI series began in 2018. 

However, staffing growth remained modest overall and did not fully alleviate rising backlogs of work. 

“The pace of job creation was still only modest, however, and backlogs of work continued to rise, so we may see even greater employment growth in the months ahead,” Harker added. 

Purchasing activity also increased for the second month running, and firms reported a solid build-up in input inventories. Supplier performance improved, with delivery times shortening for the third consecutive month. 

Cost pressures intensified midway through the second quarter, driven by rising prices for advertising, transport, staffing, food, and stationery. 

Input price inflation accelerated to its highest level since March 2024, prompting firms to raise output prices at the sharpest rate in nearly a year. 

Despite these challenges, business confidence reached a 12-month high in May, with 36 percent of respondents expecting output to grow over the next year. 

Optimism was supported by stronger demand, competitive pricing, and ongoing marketing activity. 

Egypt en route to stabilization 

In Egypt, although the non-oil private sector remained under pressure, the pace of deterioration in business conditions slowed. 

The headline PMI of 49.5, up from 48.5 in April, indicated the mildest contraction since February. 

The improvement came amid softer declines in both output and new business, aided by a rebound in the manufacturing sector. 

Egypt’s softer PMI contraction in May aligns with the IMF’s upward revision of the country’s growth forecast to 3.8 percent for 2025, signaling emerging signs of resilience in the non-oil economy. 

“Output and new orders fell at the slowest rates for three months,” said David Owen, senior economist at S&P Global Market Intelligence. 

“Nevertheless, a number of surveyed firms continued to report softness in market demand, leading them to cut back on purchases and staffing,” he added. 

Companies in Egypt reduced purchasing activity at the fastest rate since October, citing efforts to streamline inventories in response to subdued demand. 

Stock levels of inputs rose only marginally. Employment fell for the fourth consecutive month, though the decline remained mild, driven primarily by a policy of not replacing staff who voluntarily left their positions. 

Egyptian businesses faced the steepest rate of input cost inflation so far in 2025, with price increases reported for fuel, cement, and paper. 

Volatile exchange rates, particularly the weakening of the Egyptian pound against the US dollar, further contributed to supplier price hikes. 

Wage inflation, by contrast, remained modest. After flatlining in April, output prices rose at the fastest pace in seven months as firms passed on part of their rising costs to customers. 

Sentiment in Egypt improved slightly from April, though optimism remained below historical norms. 

“Although many of the key PMI metrics continued to indicate a deterioration in business conditions in May, the overall pace of decline was not as sharp as in April and softer than the survey’s historical trend,” Owen added. 

Persistent cost pressures and weak domestic demand continued to weigh on expectations for future activity. 

Some businesses voiced concern over external headwinds, including global trade uncertainty and the impact of US tariffs. 


Saudi airline flynas’ IPO oversubscribed by nearly 350%

Updated 39 min 38 sec ago
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Saudi airline flynas’ IPO oversubscribed by nearly 350%

RIYADH: Saudi low-cost carrier flynas finalized its initial public offering share allocation at SR80 ($21) per share, the top of its indicated range, following robust demand from institutional and retail investors.

The pricing values the airline at an estimated market capitalization of SR13.6 billion at listing.   

The offering comes after flynas announced plans last month to float 30 percent of its share capital on the Saudi Exchange, becoming the first airline in the Kingdom to go public and the Gulf’s first in nearly two decades. 

Between May 28 and June 1, 666,069 retail investors oversubscribed the offering by nearly 350 percent, receiving 10.25 million shares, or 20 percent of the total. Institutional investors showed even stronger appetite, oversubscribing their tranche by roughly 100 times, with orders totaling SR409 billion from both local and international buyers. 

In a press release, flynas stated: “Each retail investor was allocated a minimum of 10 shares, with the remaining shares allocated on a pro-rata basis in proportion to the size of demand, resulting in an average allocation factor of 12.3 percent.” 

It added: “Any surplus subscription funds will be refunded to retail investors no later than Thursday, 5 June 2025.” 

The company’s shares are expected to list and begin trading on the Main Market of the Saudi Exchange once regulatory requirements are met with the Capital Market Authority and the exchange. The exact listing date will be announced in due course. 

The IPO marks a key milestone for the company as it seeks to strengthen its market position and expand its operational footprint. 

“This strategic move will propel us toward becoming the leading low-cost carrier in the MENA region for short and medium-haul markets by 2030,” Bander Al-Mohanna, CEO and managing director of flynas, said last month. 

He added: “Through this IPO, we are offering investors access to a unique and valuable asset in the rapidly growing KSA and GCC aviation sector.” 

The strong interest from both retail and institutional investors reflects rising confidence in the Kingdom’s aviation sector and its broader economic diversification efforts. 

Launched in 2007, the airline holds a 23 percent share of Saudi Arabia’s domestic aviation market and operates one of the youngest fleets in the region, with an average aircraft age of 3.2 years. The airline reported an 88 percent on-time performance rate in 2024. 

Proceeds from the IPO will be used to expand its fleet — including a major order for 225 Airbus aircraft — enhance services for Hajj and Umrah travelers, and invest in cargo operations. 

The strong capacity growth of flynas aligns with Saudi Arabia’s national goal to establish itself as a global tourist and business destination. The Kingdom aims to attract over 150 million visitors by the end of this decade.


PIF-backed D360 bank eyes global investors for Series A round 

Updated 03 June 2025
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PIF-backed D360 bank eyes global investors for Series A round 

RIYADH: Saudi Arabia’s Public Investment Fund-backed digital bank D360 is in early talks with potential global investors as it prepares for a Series A funding round planned for the second half of 2025. 

The Shariah-compliant lender, which began operations in December, is targeting the first quarter of 2026 to complete the raise, CEO Eze Szafir said in an interview with Bloomberg. 

This development follows the bank’s successful securing of around $500 million from existing shareholders, including PIF and Derayah Financial Co. 

While Szafir did not disclose the size of the upcoming round, he told Bloomberg the funding will support the bank’s efforts to expand services to small and medium enterprises, aligning with the Kingdom’s broader economic diversification strategy under Vision 2030. 

“We’re looking for new investors in the international landscape, most probably from Europe or the US, with the same quality we have here with the PIF and Derayah,” Szafir was quoted as saying. 

D360 also plans to roll out full lending services for individuals and SMEs later this year. 

In preparation for the raise, the company has appointed former JPMorgan Chase & Co. banker Mohammed Nazer as chief financial officer to lead the process. Nazer said the bank expects to appoint advisers to manage the Series A round by the end of July. 

One of the first institutions to be granted a digital banking license in Saudi Arabia, D360 currently serves over 1 million users. It is targeting 4 million account holders ahead of a potential public listing within the next four years. 

By adopting data-driven strategies and modern technologies, D360 aims to contribute to the development of the Kingdom’s digital financial infrastructure and align with the goals of Vision 2030. 

The move comes as the Saudi Central Bank continues to advance regulatory frameworks that support digital transformation in the financial sector. The institution, also known as SAMA, has prioritized fostering innovation and financial inclusion through digital banking, granting licenses to new digital players in a bid to modernize the Kingdom’s banking landscape and strengthen financial resilience. 

This push has helped Saudi electronic payments account for 79 percent of all retail transactions in the Kingdom in 2024, up from 70 percent the previous year, according to SAMA. 

The central bank also reported that the total number of non-cash retail transactions reached 12.6 billion in 2024, compared to 10.8 billion in 2023, reflecting the continued growth and widespread adoption of digital payment systems nationwide.


Oil Updates — crude inches up on supply concerns and weaker dollar

Updated 03 June 2025
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Oil Updates — crude inches up on supply concerns and weaker dollar

SINGAPORE: Oil prices ticked up on Tuesday on concerns about supply, with Iran set to reject a US nuclear deal proposal that would be key to easing sanctions on the major oil producer, while weakness in the dollar also supported prices.

Brent crude futures gained 12 cents, or 0.19 percent, to $64.75 a barrel by 9:27 a.m. Saudi time.

US West Texas Intermediate crude was up 20 cents, or 0.32 percent, to $62.72 a barrel, after rising about 1 percent earlier in the session.

The oil market surged higher on Monday as rising geopolitical risks and a supply hike from OPEC+ that fell short of expectations provided a boost, said ING analysts in a note.

“The strength continued into early morning trading today,” ING said on Tuesday.

Both contracts gained nearly 3 percent in the previous session after the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, agreed to keep output increases in July at 411,000 barrels per day, which was less than some in the market had feared and the same hike as the previous two months.

“With the worst fears not panning out, investors unwound their bearish positions they had built prior to the weekend’s meeting,” ANZ analysts said in a note.

Meanwhile, the dollar index, which measures its performance against six other major currencies, held near six-week lows as markets weighed the outlook for President Donald Trump’s tariff policy and its potential to hurt growth and stoke inflation.

A weaker US currency makes dollar-priced commodities such as oil less expensive for holders of other currencies.

“Crude oil prices continue to rise, supported by the weakening dollar,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.

Geopolitical tensions also supported prices. Iran was poised to reject a US proposal to end a decades-old nuclear dispute, an Iranian diplomat said on Monday, saying it fails to address Tehran’s interests or soften Washington’s stance on uranium enrichment.

If nuclear talks between the US and Iran fail, it could mean continued sanctions on Iran, which would limit Iranian supply and be supportive of oil prices.

Adding to supply worries, a wildfire in the province of Alberta in Canada has prompted a temporary shutdown of some oil and gas production, which could reduce supply.

According to Reuters calculations, wildfires in Canada have affected more than 344,000 bpd of oil sands production, or about 7 percent of the country’s overall crude oil output. 


Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

Updated 02 June 2025
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Closing Bell: Tadawul closes higher on Monday as TASI edges up; Nomu surges over 300 points 

  • MSCI Tadawul 30 Index rose 2.47 points to settle at 1,384.58
  • Parallel market Nomu climbed 314.77 points to close at 26,984

RIYADH: Saudi Arabia’s Tadawul All Share Index closed slightly higher on Monday, gaining 24.82 points, or 0.23 percent, to reach 10,850.09.

Total trading turnover on the main market stood at SR4 billion ($1 billion). 

Market breadth remained mixed, with 116 gainers against 120 decliners. The MSCI Tadawul 30 Index rose 2.47 points, or 0.18 percent, to settle at 1,384.58. 

The parallel market Nomu recorded a more pronounced gain, climbing 314.77 points, or 1.18 percent, to 26,984, with 31 stocks advancing and 49 retreating. 

Savola Group led the main market gainers, advancing 4.48 percent to close at SR28. 

United Carton Industries Co., which recently debuted on Tadawul, added 4.40 percent to close at SR42.70 with over SR217 million in traded value. 

Other notable gainers included Aldawaa Medical Services Co., which rose 2.92 percent to SR77.60, Middle East Pharmaceutical Industries Co., up 2.82 percent to SR124, and Jabal Omar Development Co., which gained 2.76 percent to close at SR21.56. 

On the downside, Riyad Bank posted the sharpest drop of the day, falling 3.51 percent to close at SR27.50. 

Zamil Industrial Investment Co. dropped 2.76 percent to SR38.75, while Naseej International Trading Co. declined 2.86 percent to SR78.20. 

Emaar The Economic City slipped 2.71 percent to SR12.92, and Abdullah Saad Mohammed Abo Moati for Bookstores Co. fell 2.45 percent to close at SR35.80. 

On the announcement front, Al-Modawat Specialized Medical Co. disclosed that its board had passed a resolution to initiate the company’s transfer from the Parallel Market to the Main Market. 

The move is subject to regulatory approvals and fulfillment of the market’s listing conditions. Shares of Al-Modawat ended the day down 1.84 percent at SR17.06. 

Saudi Arabian Mining Co. announced that it has received approval from the Capital Market Authority to proceed with a capital increase in connection with its previously disclosed acquisition of full ownership in Maaden Bauxite and Alumina Co. and Maaden Aluminium Co. 

The move is part of a share purchase and subscription agreement signed with AWA Saudi and Alcoa Saudi in 2024. 

The capital increase will raise Ma’aden’s share capital from SR38.03 billion to SR38.89 billion through the issuance of 861.9 million new shares. 

The newly issued shares will be used to acquire 100 percent of the shares held by AWA Saudi in MBAC and Alcoa Saudi in MAC, corresponding to 25.1 percent of the issued capital of each entity. 

In total, Ma’aden will issue 89.98 million new shares to AWA Saudi and 165 million shares to Alcoa Saudi at a nominal value of SR10 per share.

The transaction is expected to be executed through a combination of share issuance and cash payment. 

The company stated that further updates, including shareholder meeting arrangements for capital increase approval, will be announced in due course. 

Shares of Ma’aden closed 0.92 percent higher on Monday at SR49.50.