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Kuwait raises $11.25bn in first global bond sale since 2017 

Kuwait raises $11.25bn in first global bond sale since 2017 
The transaction was 2.5 times oversubscribed, with the order book peaking at $28 billion. Shutterstock
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Kuwait raises $11.25bn in first global bond sale since 2017 

Kuwait raises $11.25bn in first global bond sale since 2017 

RIYADH: Kuwait secured $11.25 billion through a three-part sovereign bond as it returned to global debt markets for the first time in eight years. 

The move drew strong demand and was priced at some of the tightest spreads for an emerging-market issuer this year. 

The deal comprised $3.25 billion of three-year notes, $3 billion of five-year bonds, and $5 billion of 10-year debt. The tranches are priced at 40 basis points over Treasuries for the shorter maturities and 50 basis points for the 10-year, tighter than Kuwait’s 2017 debut, according to a press release. 

The transaction was 2.5 times oversubscribed, with the order book peaking at $28 billion. More than 66 percent of the allocations went to investors outside the Middle East and North Africa region, including 26 percent from the US, 30 percent from Europe and the UK, and 10 percent from Asia. 

The broad investor base reflects Kuwait’s increasing integration into global capital markets and the strength of its credit fundamentals. 

Kuwait’s Minister of Finance, Sobeen Al-Mukhaizim, said the issuance underscores investor confidence in “Kuwait’s fiscal strength, prudent policies, and enduring financial buffers.” 

He added: “This transaction reinforces Kuwait’s credibility in global markets and deepens our partnership with international investors as we advance our Vision 2035.” 

A recent report by Fitch Ratings affirmed Kuwait’s long-term foreign-currency issuer default rating at AA- with a stable outlook, underpinned by the country’s large financial buffers and robust external balance sheet. 

However, the agency also highlighted risks stemming from Kuwait’s reliance on hydrocarbons, a large public sector, and comparatively weak governance indicators. 

The latest offering is one of the largest sovereign bond deals of 2025 and includes one of the biggest order books of the year. 

The transaction was led by Citi, Goldman Sachs International, HSBC, J.P. Morgan, and Mizuho as Joint Global Coordinators. Bank of China and Industrial and Commercial Bank of China acted as Passive Joint Lead Managers. 

The issuance follows the passage of Kuwait’s new public debt law in March, which lifted the borrowing ceiling to 30 billion Kuwaiti dinars ($98.1 billion) and enabled longer-term borrowing, a report by Reuters found. 


GCC banks’ return on equity climbs to 13.2% in H1: EY 

GCC banks’ return on equity climbs to 13.2% in H1: EY 
Updated 8 sec ago

GCC banks’ return on equity climbs to 13.2% in H1: EY 

GCC banks’ return on equity climbs to 13.2% in H1: EY 

RIYADH: Gulf banks delivered stronger profits and healthier balance sheets in the first half of 2025 even as lower interest rates began to weigh on lending margins, a new report showed. 

According to the EY GCC Banking Sector Outlook, average return on equity rose to 13.2 percent, driven by higher non-interest income and tighter cost controls. 

Operating efficiency improved, with the cost-to-income ratio falling to 32 percent, while asset quality strengthened as non-performing loans declined to 2.4 percent from 2.8 percent a year earlier, the report added.  

This strong performance is underpinned by a positive macroeconomic forecast for the GCC, with economic growth projected at 3 percent in 2025 before accelerating to 4.1 percent in 2026, supported by infrastructure spending, economic diversification, and vibrant private sector activity. 

This comes as Kamco Invest reported that GCC-listed banks posted a record $16.2 billion in net profit in the second quarter, driven by higher revenues and efficiency gains that offset rising impairment charges. 

Mayur Pau, EY MENA financial services leader, said: “With solid capital buffers, healthier balance sheets and improved efficiency, banks are well-positioned to navigate near-term pressures and pursue long-term opportunities.” 

The sector also maintained strong capital buffers, with an average Tier 1 capital ratio of 17.5 percent and a capital adequacy ratio of 18.9 percent, reinforcing its ability to withstand potential economic shocks. 

The report also flagged emerging challenges. Net interest margins contracted to 2.6 percent from 2.8 percent in the first half of 2024, reflecting the impact of interest rate cuts. Liquidity conditions have also tightened, with the loan-to-deposit ratio rising to 94.1 percent.

EY noted that these factors are squeezing traditional revenue streams, prompting banks to focus on diversifying income and enhancing operational efficiency. 

“Bank profitability remains intact, underpinned by rising non-interest income and stable asset quality,” Pau said, adding that net interest margins are under pressure following rate reductions implemented in late 2024, which triggered loan repricing at lower yields.

“This trend is expected to persist with further rate cuts announced in September 2025,” he said. 


Global leaders call for unity against cybersecurity threats

The Global Cybersecurity Forum Annual Meeting kicked off in Riyadh on Wednesday. (AN photo by Abdulrahman bin Shalhoub)
The Global Cybersecurity Forum Annual Meeting kicked off in Riyadh on Wednesday. (AN photo by Abdulrahman bin Shalhoub)
Updated 01 October 2025

Global leaders call for unity against cybersecurity threats

The Global Cybersecurity Forum Annual Meeting kicked off in Riyadh on Wednesday. (AN photo by Abdulrahman bin Shalhoub)
  • Dangers highlighted at Global Cybersecurity Forum in Riyadh
  • Saudi ‘showing the way,’ Senegal’s Macky Sall tells Arab News

RIYADH: Day one of the Global Cybersecurity Forum Annual Meeting concluded here with calls for governments and the private sector to secure critical infrastructure and build international agreements against mounting cybersecurity threats.

Macky Sall, the former president of Senegal, told Arab News at the GCF: “Cybersecurity is a global challenge. It ignores borders.

“So if you want to have global action and be positive, we should bring together countries, states and nations and the private sector who are leading the big platform, what we call Big Tech.”

“(The) Kingdom of Ƶ, with this initiative, launched in 2020, the Global Cybersecurity Forum, is showing the way, and the Kingdom invests a lot to fight terrorism and to develop capabilities,” he added.

Now in its fifth edition, the forum aims to continue strengthening the safety and resilience of cyberspace by advancing international collaboration.

The forum announced the Global Initiative for Capacity Building in Cyberspace, a major plan to scale cohesive advances in cyberspace, and strengthen online resilience.

The new initiative aims to deliver accelerated capacity development at scale in areas of greatest need through expert-led workshops, training and education programs, international simulations and cyber drills, and policy development support.

Also planned is collaboration around research and development to enhance the skills of beneficiaries worldwide, including policy practitioners, law enforcement personnel, and cyber diplomats.

Implementation will be led by Ƶ’s National Cybersecurity Authority, Saudi Information Technology Co., and the GCF, in partnership with UN agencies.

The plan is to include the UN Development Program, UN Office on Disarmament Affairs, UN Office on Drugs and Crime, UN Interregional Crime and Justice Institute, UN Institute for Disarmament Research, and the International Telecommunication Union, alongside Interpol.

In an interview with Arab News, Jurgen Stock, former secretary-general of Interpol, said: “GCF is a wonderful and a needed platform, a global platform to deal with something that is global by nature, which is cybercrime.”

“All the threats related to our digital environment, which I mean, almost since a couple of years, have only shown one direction.

“The numbers, unfortunately, are going up, and now with new technologies coming up, artificial intelligence first and foremost, of course, this threat is not going away.”

“And we have to deal and to address that threat in a collective way. No country, no region, no company, no government can fight that in isolation. We need strong partnerships. And I think this is exactly what GCF is about.”

Stock praised Ƶ for “its efforts in building partnerships with law enforcement, with regulators, telecommunication companies, IT security companies, and finally also law enforcement help closing these gaps as quickly as possible.”

According to the GCF 2024 Cybersecurity Workforce Report there is a worldwide shortage of 2.8 million cybersecurity professionals and skills gaps reported by 43 percent of information security executives.

The report highlights the urgency of a coordinated global effort to bridge persistent cybersecurity capacity gaps.

Speaking at a panel titled “Against the Odds: Gaining Consensus Amid Complexity,” Croatia’s former president Kolinda Grabar-Kitarovic called for stronger regulation of AI and greater information sharing.

Sall urged action to bridge divides between developed and developing countries, while former US cyber director Chris Inglis emphasized the importance of building digital infrastructure that delivers real benefits for citizens.

Global leaders at the forum emphasized the importance of future-proofing international agreements, closing the digital gap between nations, and fostering collaboration that delivers tangible benefits.


Saudi budget carrier flyadeal begins service to Damascus 

Saudi budget carrier flyadeal begins service to Damascus 
Updated 01 October 2025

Saudi budget carrier flyadeal begins service to Damascus 

Saudi budget carrier flyadeal begins service to Damascus 

RIYADH: Saudi low-cost carrier flyadeal has started direct flights to Damascus, re-establishing air links between the two countries after a period of suspended services.

The inaugural flight, arriving from Jeddah on Oct. 1, was welcomed by Abdullah Al-Harith, Saudi deputy ambassador to Syria, at Damascus International Airport. 

The airline received regulatory approval earlier this year to operate to Syria, with CEO Steven Greenway announcing a planned launch in July. 

The move is part of a wider regional trend, with airlines such as flynas, FlyDubai, and Royal Jordanian also resuming services to Damascus. 

The return of international carriers follows recent decisions by the US and EU to lift long-standing economic sanctions on Syria, enabling renewed trade, tourism, and investment opportunities. 


KAFD and RCRC sign agreement to launch first phase of Riyadh Creative District

KAFD and RCRC sign agreement to launch first phase of Riyadh Creative District
Updated 01 October 2025

KAFD and RCRC sign agreement to launch first phase of Riyadh Creative District

KAFD and RCRC sign agreement to launch first phase of Riyadh Creative District

RIYADH: The first phase of the Riyadh Creative District is set to take shape after the King Abdullah Financial District Development and Management Co. signed a lease agreement with the Royal Commission for Riyadh City. 

Under the deal, RCRC will lease three landmark buildings within KAFD to host RCD’s initial operations, positioning the district as a hub for media, cultural, and creative technology enterprises. 

The initiative supports Vision 2030 objectives to transform Riyadh into a global center for innovation and culture. Launched under the patronage of Crown Prince Mohammed bin Salman, RCD seeks to unite Saudi and international talent to drive content creation, cultural exchange, and economic diversification. 

Mohammed Al-Sudairy, acting CEO at KAFD DMC, said the agreement “highlights KAFD’s commitment to shaping the industries of tomorrow.”   

He added: “By bringing together creative thinkers, business leaders, and cultural institutions in a single destination, we are opening doors for emerging talent and advancing Riyadh’s status as a global hub for creative and cultural innovation.”  

Mazen Tammar, vice president of City Marketing and Investment Promotion at RCRC, noted that hosting RCD’s first phase in KAFD “reflects our shared vision of building Riyadh into a world-leading destination for creativity and innovation.”   

He emphasized that the initiative “will empower the creative community, nurture local creative talent, attract global partners, and advance Riyadh’s role as a cultural and economic hub in line with Vision 2030.”  

The RCD was launched in February by the RCRC board of directors and has already begun attracting international institutions.   

Earlier this year, Italian fashion school Instituto Marangoni inaugurated its Riyadh campus within the district, marking a key milestone in the project's development.  


Closing Bell: Saudi main index closes in green at 11,529 

Closing Bell: Saudi main index closes in green at 11,529 
Updated 01 October 2025

Closing Bell: Saudi main index closes in green at 11,529 

Closing Bell: Saudi main index closes in green at 11,529 

RIYADH: Ƶ’s Tadawul All Share Index rose on Wednesday, gaining 26.39 points, or 0.23 percent, to close at 11,529.36. 

The total trading turnover of the benchmark index was SR5.99 billion ($1.59 billion), as 116 of the listed stocks advanced, while only 131 retreated. 

The MSCI Tadawul Index also increased, up 6.46 points or 0.43 percent, to close at 1,506.44. 

The Kingdom’s parallel market Nomu gained 116.96 points, or 0.46 percent, to close at 25,589.40. This comes as 48 of the listed stocks advanced, while 34 retreated. 

The best-performing stock was Saudi Kayan Petrochemical Co., with its share price surging by 6.37 percent to SR6.01. 

Other top performers included Nahdi Medical Co., which saw its share price rise by 4.45 percent to SR124.30, and Gulf Union Alahlia Cooperative Insurance Co., which saw a 3.94 percent increase to SR13.97. 

CHUBB Arabia Cooperative Insurance Co. rose 3.82 percent to SR41.32, while Middle East Paper Co. gained 3.19 percent to SR28.50. 

On the downside, Fawaz Abdulaziz Alhokair Co. slipped 3.24 percent to SR27.48, making it the session’s weakest performer. 

Derayah Financial Co. fell 3.09 percent to SR30.72, while Alujain Corp. dropped 2.46 percent to SR34.94. 

Amlak International Finance Co. fell 2.44 percent to SR12.39, while Makkah Construction and Development Co. dropped 2.41 percent to SR87.05. 

On the announcements front, Sustainable Infrastructure Holding Co. has signed an agreement to acquire a 51 percent majority stake in Port Services & Storage Co. for up to SR132 million. 

According to a press release, the deal, which includes an initial payment and future performance-based earn-outs, is slated for completion in the final quarter of 2025, pending regulatory approval. 

This strategic acquisition aims to strengthen SISCO’s integrated logistics platform, expand its footprint in the Eastern Province, and create synergies with its existing logistics real estate assets. 

SISCO Holding’s shares traded 0.18 percent higher on the main market to close at SR33.06.