Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Saudi Tadawul eyes strong growth amid rising listings and foreign investment /node/2590688/business-economy
Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Tadawul Chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange. AN Photo
Short Url
https://arab.news/5gd9r
Updated 18 February 2025
NADIN HASSAN
Saudi Tadawul eyes strong growth amid rising listings and foreign investment
Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors
It is also expanding its footprint in data innovation and commodity markets
Updated 18 February 2025
NADIN HASSAN
RIYADH: Saudi stock exchange operator Tadawul Group is poised to accelerate the growth of its fixed-income market in 2025, with a strong focus on sustainable finance, following a record year for the group.
Speaking at the 5th Capital Markets Forum in Riyadh, Tadawul chairperson Sarah Al-Suhaimi highlighted 2024 as a transformative year for the exchange, with more than 50 listings across its main and parallel Nomu markets, reflecting a surge in market activity.
Tadawul’s growth has been bolstered by a rising influx of qualified foreign investors, which now number nearly 4,200 and represent 25 percent of total equity capital market trades. This influx aligns with Ƶ’s broader economic goals of diversifying its financial sector and attracting international capital.
“A strong capital market extends beyond equities,” Al-Suhaimi said. “We are making significant strides in our diversification strategy. With over 45,000 investors, our fixed-income market is poised to gain further momentum in 2025, especially in sustainable finance.”
Looking ahead, Al-Suhaimi forecasted continued momentum across multiple asset classes in 2025. “2024 was a milestone year for the group and its subsidiaries,” she said. “We saw greater interest from international investors than ever before, with nearly 4,200 QFIs, who account for 25 percent of our total ECM trades, and a more diverse range of sectors.”
Tadawul is also expanding its footprint in data innovation and commodity markets. Through its acquisition of Direct FN and a stake in the Gulf Mercantile Exchange, the group aims to broaden its market offerings and enhance its competitive edge.
“These strategic steps align with our diversification strategy, broadening opportunities and reinforcing our position across multiple financial segments,” Al-Suhaimi said.
The CMF, as the world’s largest capital market event, continues to serve as a premier platform where Ƶ’s rapidly evolving capital market intersects with global finance.
Al-Suhaimi expressed confidence that the forum will spur new partnerships and innovations, paving the way for further collaboration and growth within the Kingdom’s financial ecosystem.
“CMF is an opportunity to forge meaningful partnerships and spotlight potential venues through which we can leverage synergies for a long-lasting impact,” she said.
With an eye on 2025, Tadawul is positioned to play a pivotal role in shaping the future of the Middle East’s capital markets.
Closing Bell: Saudi main index closes in red at 10,619
Parallel market Nomu gained 0.12% to close at 25,673.03
MSCI Tadawul Index fell 7.87 points to 1,375.55
Updated 16 sec ago
NADIN HASSAN
RIYADH: Ƶ’s benchmark Tadawul All Share Index closed lower on Wednesday, slipping 48.34 points, or 0.45 percent, to 10,619.10.
Total trading turnover for the day stood at SR3.33 billion ($886.3 million), with 136 stocks advancing and 110 declining.
The parallel market Nomu gained 0.12 percent, or 30.65 points, to close at 25,673.03, while the MSCI Tadawul Index fell 7.87 points to 1,375.55.
The session’s top performer was Thimar Development Holding Co., which rose 9.99 percent to SR42.92. Red Sea International Co. gained 4.94 percent to SR44.60, and Umm Al Qura for Development and Construction Co. climbed 2.80 percent to SR23.15.
On the downside, Marketing Home Group for Trading Co. fell 3.84 percent to SR77.7, while Riyad REIT Fund dropped 3.51 percent to SR5.23.
In corporate announcements, Al-Rajhi Co. for Cooperative Insurance, known as Al Rajhi Takaful, announced the completion of its share repurchase program under its Employee Stock Incentive Plan.
The buyback, approved by shareholders on June 3 and disclosed the following day, involved the purchase of 300,000 shares with a total value of SR35.7 million, at an average price of SR119 per share.
Shares of Al Rajhi Takaful slipped 1.37 percent to SR115.40.
ADES Holding Co. said it signed a multi-year contract extension with QatarEnergy for its jackup rig Aquamarine Driller, in a deal valued at about SR808 million.
The contract, signed on Sept. 2, includes a firm four-year term with options for three additional one-year extensions. The financial impact is effective immediately.
Shares of ADES fell 0.20 percent to SR15.02.
Arab National Bank announced the completion of a $750 million US dollar-denominated additional Tier 1 capital sustainable sukuk under its international program.
The issuance, offered to eligible investors in Ƶ and abroad, will settle on Sept. 9. The offering comprises 3,750 sukuk, each with a par value of $200,000, paying a 6.4 percent annual fixed return. The perpetual sukuk are callable after five years.
Arab National Bank’s shares declined 2.75 percent to SR22.30.
Saudi office rents surge on tight supply and rising demand: JLL
Riyadh’s King Abdullah Financial District’s prime rents now average SR4,000 per sq. meter
Jeddah also recorded healthy growth
Updated 24 min 46 sec ago
Nirmal Narayanan
RIYADH: Ƶ’s commercial real estate market is heating up, with prime office rents in Riyadh climbing 7.3 percent year on year in the second quarter of 2025 to SR3,630 ($967) per sq. meter per year, according to JLL.
The sharp rise reflects tight supply and robust demand, particularly in the capital and Jeddah, as the Kingdom pushes ahead with its Vision 2030 diversification drive and its Regional Headquarters Program to attract multinational firms.
Ƶ’s Real Estate General Authority expects the property market to hit $101.62 billion by 2029, with a compound annual growth rate of 8 percent from 2024.
“The continued expansion of the KSA office market directly reflects the Kingdom’s strategic vision for economic diversification and urban development,” said Saud Al-Sulaimani, country lead and head of capital markets at JLL Ƶ.
“Riyadh’s sustained performance, driven by a flight to quality and the Regional Headquarters Program, solidifies its position as a key business hub,” he added.
The regional headquarters program offers international firms a 30-year exemption from corporate income and withholding taxes, along with discounts and support services.
In March, the Saudi Press Agency reported that nearly 600 global companies, including Northern Trust, IHG Hotels & Resorts, and Deloitte, have established bases in the Kingdom since 2021.
“With a diversifying occupier base and expanding flexible workspace options, we are witnessing a dynamic and maturing market where landlords are strategically adapting to meet evolving tenant needs for enhanced amenities and services,” said Al-Sulaimani.
In Riyadh’s King Abdullah Financial District, prime rents now average SR4,000 per sq. meter, underscoring surging demand for high-quality spaces.
Jeddah also recorded healthy growth, with Grade A rents rising 4.3 percent to SR1,393 per sq. meter and Grade B rents climbing 6.5 percent to SR933.
Riyadh’s prime office spaces registered a low 0.5 percent vacancy rate in the second quarter, highlighting demand for such spaces in the Kingdom’s capital city.
Grade A and B segments in Riyadh also maintained constrained vacancy rates of 3.8 percent and 2.9 percent, respectively.
In Jeddah, Grade A and B vacancy rates stood at 3.3 percent and 2.2 percent, respectively.
Riyadh’s total office stock reached 8.1 million sq. meters in the second quarter of the year, with an additional 0.66 million sq. meters expected by year-end.
“The high demand has seen residential assets being converted to office space across the city (Riyadh), and new occupiers relocate to the less congested northern parts,” said global real estate services company JLL.
“The capital’s occupier base is also diversifying, with notable leasing activity over the last quarter from non-traditional sectors such as health care, pharmaceuticals, and technology,” it added.
In Jeddah, 81,887 sq. meters of new office space were added in the first half of this year, bringing total stock to 2.97 million sq. meters, with a further 42,680 sq. meters of gross lease area expected by year-end.
UAE sees steady August PMI growth as Kuwait, Egypt contract
Sales growth in UAE’s non-oil private sector weakened for fourth consecutive month
Kuwait’s output and new orders grew at their weakest pace since February
Updated 03 September 2025
REEM WALID
RIYADH: Business activity across Middle Eastern and North African economies showed mixed trends in August, with the UAE leading growth while Kuwait and Egypt recorded contractions, according to market trackers.
The headline S&P Global Purchasing Managers’ Index, a composite gauge of non-oil private sector performance, is derived from data on new orders, output, employment, supplier delivery times, and inventory levels.
The latest PMI data from S&P Global showed the UAE rising to 53.3 in August from 52.9 in July, rebounding from a 49-month low and remaining comfortably above the neutral 50 mark. The reading signaled an improvement in non-oil private sector conditions.
In Kuwait, the index edged down to 53 from 53.5 in July, its weakest level in six months, though still indicating expansion midway through the third quarter. Egypt, however, slipped further into contraction territory, falling to 49.2 from 49.5 a month earlier. While the decline quickened, it remained less severe than the survey’s long-term average of 48.2.
The figures align with World Bank projections that Gulf Cooperation Council economies will expand by 3.2 percent in 2025 and 4.5 percent in 2026, supported by easing OPEC+ production cuts and stronger non-oil sector activity.
The UAE’s PMI was supported by stronger output growth, which accelerated to its fastest pace in six months. Shutterstock
UAE sales growth slows
Sales growth in the UAE’s non-oil private sector weakened for the fourth consecutive month in August, pushing new orders to their lowest level since mid-2021.
“The slowdown added to concerns of fading growth momentum and meant that output was increasingly reliant on backlogs of work,” said David Owen, senior economist at S&P Global Market Intelligence.
He noted that purchasing activity dropped for the first time since mid-2021, highlighting waning demand and softer supply chain conditions.
“In addition, a renewed drop in the amount of inputs purchased by non-oil businesses, the first since mid-2021, provides a further sign of fading demand in the second half of this year. The reduction came amid a softer improvement in supply chain conditions, which was also said to have disrupted markets,” Owen added.
Although input price inflation eased in August, a sharp increase in wage costs offset the relief. Rising hiring activity and higher salary demands linked to the cost of living drove wage inflation. “Selling prices also climbed at a faster rate during the month, which could raise concerns for consumers if the upward trend persists,” Owen said.
The report showed the UAE’s PMI was supported by stronger output growth, which accelerated to its fastest pace in six months and slightly exceeded the survey’s long-term average. Panelists frequently cited increased sales, project activity, and expansion in local markets as drivers of momentum.
Kuwait’s non-oil private sector has posted consistent monthly growth over the past year. Shutterstock
Kuwait’s new orders weaken
In Kuwait, output and new orders grew at their weakest pace since February.
“Inflationary pressures also eased, however, providing welcome respite for firms on the cost front and enabling competitive pricing policies to be maintained,” said Andrew Harker, economics director at S&P Global Market Intelligence.
He added: “Companies were again reluctant to meaningfully increase their workforce numbers, which continued to put pressure on capacity and restrict their ability to finish projects on time. We will hopefully see job creation strengthen in the months ahead, but firms will likely wait and see if the demand picture strengthens before committing to new hires.”
The report noted that while operating conditions improved, it was at the slowest rate since March. Still, Kuwait’s non-oil private sector has posted consistent monthly growth over the past year.
August marked the sixth consecutive month of falling output and new orders in Egypt’s non-oil economy. Shutterstock
Egypt faces cost pressures
Egypt’s PMI data pointed to a further deterioration in operating conditions, though the pace of contraction was milder than historical averages.
“Employment was also up for the second consecutive month, after a lack of hiring in the first half of the year. However, staffing gains were only mild, while firms remained reluctant to commit to new purchases, particularly as confidence in the year-ahead outlook remains weak,” Owen said.
He added: “Persistent inflationary pressures appear to be a key factor holding back company sales and output projections over recent months. While official CPI inflation has fallen from 2024 levels, it was still at a marked rate of 13.9 percent in July. However, the latest PMI data signaled that business cost pressures were at one of their lowest levels since early-2021.”
Owen emphasized that if easing cost pressures translates into lower prices for consumers, demand could recover.
Still, August marked the sixth consecutive month of falling output and new orders in Egypt’s non-oil economy. The report showed moderate declines across all surveyed sectors, with respondents citing weak demand amid challenging economic conditions and lingering inflation concerns. Although the pace of decline quickened slightly from July, it remained less severe than long-term averages.
Number of transactions rose 11.2% to SR237 million
POS spending in hotel sector declined 6.5% to SR254 million
Updated 03 September 2025
Nirmal Narayanan
RIYADH: Ƶ’s point-of-sale transactions climbed 17.8 percent to SR15.79 billion ($4.21 billion), the largest increase in three weeks, as consumer spending accelerated across most sectors in a sign of robust economic momentum.
The number of transactions rose 11.2 percent to SR237 million in the week ended Aug. 30, according to data from the Saudi Central Bank.
The strong spending reflects sustained consumer confidence and the ongoing shift toward digital payments, supported by the Kingdom’s Vision 2030 reform initiative.
The food and beverage sector remained the largest spending category, rising 29.4 percent to SR2.30 billion. Restaurant and cafe spending increased by 9.9 percent to SR1.70 billion.
In contrast, POS spending in the hotel sector declined by 6.5 percent to SR254 million.
Transportation sector activity grew 16.9 percent to SR1.13 billion, while expenditure on professional and business services climbed 18.8 percent to SR1.10 billion.
Spending on apparel, clothing, and accessories increased by 16.3 percent to SR1.18 billion. Meanwhile, education-related transactions reached SR1.10 billion, and spending at gas stations totaled SR1.08 billion.
The strong performance aligns with Ƶ’s non-oil private sector expansion, which remained firmly in growth territory according to the latest Purchasing Managers’ Index. This consistent consumer activity underscores the success of economic diversification efforts away from hydrocarbon dependence.
Riyadh dominated POS transactions, with expenses in the capital reaching SR5.47 billion, a 11.7 percent increase compared to the previous week.
Jeddah followed with a 24.1 percent increase to SR2.19 billion, and Dammam ranked third at SR771.70 million, up 14.7 percent.
Spending in Madinah rose 27.1 percent to SR624.30 million, while Makkah reached SR610.99 million. Al-Khobar recorded SR441.49 million, followed by Buraidah with SR378.78 million, and Abha at SR221.03 million.
The widespread adoption of digital payment platforms, combined with rising disposable incomes and a growing youth population, continues to fuel the transformation.
The data suggests consumer confidence remains resilient despite global economic uncertainties, providing crucial support to the Kingdom’s broader economic transformation agenda.
Egypt’s net foreign assets jump to a record $18.5 billion in July
Updated 03 September 2025
Reuters
CAIRO: Egypt’s net foreign assets rose by $3.54 billion in July to a record $18.5 billion, central bank data showed, as Gulf investments, a currency devaluation 18 months ago and strong remittances from workers abroad help boost deposits, analysts say.
Net foreign assets were $14.96 billion at the end of June. Almost all of the increase was due to higher assets at commercial banks.
Remittances from Egyptians abroad have surged since Egypt sharply devalued its currency in March 2024, jumping to $26.4 billion in the nine months to end-March from $14.5 billion in the year-earlier period, the central bank said in July.
Commercial banks’ foreign assets rose by $3.28 billion in July to $39.49 billion while their liabilities fell by $166.2 million to $31.50 billion, according to the central bank data.
Egypt’s net foreign assets, which include assets held by both the central bank and commercial banks, turned negative in February 2022 and only returned to positive territory in May last year.
They had reached a high of $17.47 billion in July 2021, according to Reuters calculations.
