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Saudi deficit exceeds forecast Driven by oil revenue decline Increased bond issuance expected Saudi Arabia will probably issue at least $10 billion more in bonds and sukuk this year to help fund the kingdom’s widening budget deficit. Since posting a surplus in 2022 thanks to oil prices hitting a 10-year peak that year, Saudi Arabia has posted annual deficits due to lower crude revenues and higher government spending. The country’s budget deficit will be nearly 5 percent of GDP in 2025, up from 2.5 percent last year, Dubai’s Arqaam Capital forecasts, and that will spur policymakers to sell additional bonds…

China and 53 African countries called on nations, especially the United States, to return to the “right track” of resolving trade differences, the official Xinhua news agency reported on Wednesday. The statement came after China’s Foreign Minister Wang Yi met with African officials in the city of Changsha located in southern Hunan province. The White House, in its April 2 “Liberation Day” tariff announcement, imposed some of the highest tariffs on several African countries. That included levies of up to 50% on goods from Lesotho, 47% for Madagascar, 40% for Mauritius, 38% for Botswana and 31% for South Africa, the…

15 producers listed on Tadawul Kingdom is self-sufficient Input costs up, profits down In some respects, Saudi cement producers, important constituents of the Tadawul stock exchange and bellwethers of the national economy, have never had it so good. The kingdom has an array of giga-projects underway and is preparing to host a series of high profile international events, from the World Expo in Riyadh in 2030 to the Fifa World Cup four years later. In addition, the Public Investment Fund (PIF), controller of a hefty $940 billion in assets, last year pledged to reduce activity overseas to focus on the…

Saudi Arabia’s small and medium enterprises (SMEs) are experiencing unprecedented growth, positioning themselves as a vital pillar in the Kingdom’s efforts to diversify its economy and increase private sector participation, which are core goals of Vision 2030. According to the Q1 2025 report by the General Authority for Small and Medium Enterprises (Monsha’at), commercial registrations surged 48% year-on-year, reaching 154,640 new registrations in the first quarter alone. Active registrations climbed to 1.68 million, reflecting a 6% annual increase. As part of the Kingdom’s accelerating digital transformation, over 41,000 active businesses now operate in e-commerce. Notably, 45% of active commercial registrations…

Hope for interest rate cuts Political instability a factor Foreign investment half 2008 level Investors are continuing to exit Turkey’s stock exchange, despite Borsa İstanbul’s main index recovering from losses sparked by concerns over political instability. However, anticipated cuts in interest rates could see a return to the share market as traders seek richer earnings. More than 1.8 million investors stepped away from the exchange in the year ending June 8, according to a report issued by Turkey’s Central Securities Depository. The share of equity held by foreigners also slipped to an 18-month low.  Foreigners account for 35 percent of…

US consumer prices likely increased moderately in May amid relatively cheaper gasoline, but the Trump administration’s import tariffs probably started filtering through to other goods, potentially raising underlying inflation pressures. The Consumer Price Index report from the Labor Department on Wednesday could show the CPI less the volatile food and energy components rising by the most in four months. Economists said the increase in the so-called core CPI would be attributable to higher prices from President Donald Trump’s sweeping import duties. May would mark the start of tariff-related high inflation readings that could last through year end, they said. Walmart…

Approval from parliament needed Trade talks continue regardless UAE has made ‘huge progress’ The European Union (EU) plans to remove the UAE from its list of high-risk countries for money laundering, a move that could ease compliance burdens for investors and banks operating in the Gulf state. The decision still requires final approval from the European Parliament and Council, which have up to two months to raise objections. The European Commission said it had updated the list to reflect changes by the Financial Action Task Force (FATF), which removed the UAE from its “grey list” in February 2023 after the…

Five nations and the European Union, as well as airlines and aerospace firms worldwide, urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, documents released on Tuesday showed. Airlines and planemakers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of $75 billion for the US industry. The documents made public by the US Commerce Department bared concerns over the fallout of possible new tariffs expressed by companies as well as nations such as Canada, China, Japan,…

$105m Abu Dhabi plant Steel pipe for oil sector Two Saudi JV investments Jindal SAW, a manufacturer of steel pipes for the energy, transportation and water sectors, will invest $118 million to expand its operations in the Middle East and North Africa (Mena). The company will establish a facility in Abu Dhabi for $105 million, with an annual production capacity of 300,000 tonnes of seamless pipe, the company said in a filing to the Bombay Stock Exchange on Tuesday. The facility, which is expected to be completed in three years, will primarily cater to the oil and gas sector in…

GRE debt worth £35bn so far this year Offers better spread than sovereign debt Strong investor demand Debt sales by government-related entities (GRE) in the Gulf, such as Saudi Electricity Co and Abu Dhabi’s Mubadala Investment Co, offer better investor value than their sovereigns, experts say. Gulf foreign currency sales of conventional and sukuk (sharia-compliant bonds) rose 9 percent to $72.4 billion in the five months to May 31, compared with the same period last year, data from London Stock Exchange Group (LSEG) show. In contrast, local currency debt offerings plunged almost 70 percent to $15 billion over the same…