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Attracting global investment Focusing on Saudi SMEs Compliant with Islamic law US asset manager Franklin Templeton says it plans to create and introduce financial products in Saudi Arabia that takes advantage of both international investor interest in the largest Arab economy as well as local appetite for global markets. This comes after the company agreed in principle last week with the Public Investment Fund (PIF) to channel as much as $5 billion of investments into Saudi markets. “We’re going to target both sides of the spectrum, both attracting international money and widening the offering for local investors within the market,”…

Sukuk will fund domestic projects Plans at ‘advanced stages’ Budget law created opportunity Algeria intends to issue its first sovereign Islamic bonds or sukuk next month to fund infrastructure and other domestic projects, according to an official. Arrangements for the first such issue by have reached “very advanced stages”, said Ruzaika Mikatli, director of the public debt office at the Algerian finance ministry, according to the Al-Khabr newspaper. “We hope that this process will be completed before the end of June. We have instructions from the high authorities in the country to accelerate this process,” Mikatli told parliament on Wednesday,…

A top IMF official has called on the US to reduce its fiscal deficit and tackle its “ever-increasing” debt burden at a time of rising concerns about President Donald Trump’s plans for sweeping tax cuts. “The US fiscal deficits are too large and they need to be brought down,” Gita Gopinath, the IMF’s first deputy managing director, told the Financial Times this week. She also warned that the world’s biggest economy was still affected by “very elevated” trade policy uncertainty despite “positive developments”, such as the Trump administration dialing back tariffs on China. Gopinath’s comments came after Moody’s stripped the…

The US President’s tour of the Gulf last week was an outstanding success for him and for the leaders of the three states that he visited: Saudi Arabia, the UAE and Qatar. Trump was able to announce that the three countries will invest trillions of dollars in the US economy and buy billions of dollars of US goods, with the implication that this will create new jobs and manufacturing plants at home, and accelerate US economic growth.  At a personal level, Trump clearly enjoyed his time with the Gulf leaders, with whose personalities and leadership styles he feels a strong…

The Saudi government has approved a new regulatory framework for the General Authority of Civil Aviation (GACA), granting it expanded powers to achieve financial sustainability and operate independently from the state budget. Under the new structure, approved recently by the Council of Ministers, GACA will gradually transition to self-funding through revenue generated from its services. While it will initially receive allocations from the state budget, the long-term goal is for the authority to maintain its own independent annual budget and a reserve fund equal to twice its previous year’s expenditures. The move is part of Saudi Arabia’s broader strategy to…

Cost of UAE insurance up 10% Less insurance purchased Adaptation essential for insurers It is perhaps no surprise that, after the heaviest rains 13 months ago since records began and billions of dollars in flood damage, the cost of insuring homes in Dubai and Abu Dhabi has jumped. But it is the so-called protection gap in the Gulf insurance market, which the average 10 to 15 percent rise in premium has highlighted, that is perhaps more interesting. The protection gap is the amount of insurance that may be economically needed and the amount actually purchased. Put even more simply, it…

Oil prices fell for a third straight session on Thursday as unexpected increases in US crude and fuel inventories raised concerns about demand from the world’s largest oil consumer while investors eyed renewed Iran-US nuclear talks. Brent futures edged 16 cents lower to $64.75 a barrel by 0630 GMT, while US West Texas Intermediate crude weakened 10 cents to $61.47. Both benchmarks fell earlier in the session after US crude and fuel inventories posted surprise stock builds last week, the Energy Information Administration said on Wednesday, as crude imports hit a six-week high and gasoline and distillate demand slipped. Crude…

Egyptian financial services company EFG Holding’s revenue declined by an annualised 34 percent in the first quarter, due to an exceptional foreign currency gain in the same period of 2024, the company said on Wednesday. Revenue fell to EGP5.6 billion ($112.5 million), while net profit after taxes and minority interests fell 34 percent to EGP1.2 billion in the quarter. Egypt in March 2024 devalued its currency to around EGP50 to the dollar from the previous EGP30, part of an $8 billion financial support programme agreed with the International Monetary Fund. “We’ve had a good quarter operationally,” chief financial officer Mohamed AbdelKhabir…

Türk Eximbank, a state-backed export credit institution, has secured $1 billion in new funding to support small businesses. The funds will be used to support women-led small and medium enterprises (SMEs) operating in low-income regions and provide financial support to SMEs exporting green products, the bank said in a post on the social media platform LinkedIn. The financing has been structured in three currencies: €499.5 million, $246 million and 1.34 billion Chinese yuan, with maturities of one, two and three years, local media reported. The funding was backed by 33 financial institutions from Europe, the Far East and the Gulf…

Saudi Arabia has secured second place among G20 countries in the UN International Telecommunication Union’s 2024 ICT Regulatory Tracker, marking a significant milestone in the Kingdom’s efforts to modernize its digital regulatory environment. The achievement underscores Saudi Arabia’s progress in developing a robust regulatory framework for the telecommunications and information technology sectors. It reflects the country’s commitment to fostering innovation, building advanced digital infrastructure, and implementing effective regulatory tools that support investment and fuel the growth of the digital economy. The Communications, Space and Technology Commission said the index is designed to assist policymakers and regulators in keeping pace with…