According to Tejarat News, in the last 2 weeks, the movement trend of the Arab stock market index was less fluctuating but mostly decreasing. Among the 7 stock markets that were red, the stock markets of Oman and Palestine fell by more than 1 percent, Abu Dhabi by 1 percent, and the stock markets of Saudi Arabia, Kuwait, Lebanon, and Qatar by less than 1 percent. On the other hand, the Egyptian stock market index rose more than 3% and had the best performance. The index of the Dubai Stock Exchange increased by 3%, the Iraqi Stock Exchange increased by more than 1%, and the indices of the Bahrain and Jordan Stock Exchanges increased by less than 1%.
With the recent trend, the returns of Palestine and Kuwait stock markets have been negative again since the beginning of this year.
Selling pressure from institutional investors was the main reason for the decline of the Qatar Stock Exchange index. The decrease in the value of shares of health care, financial and energy sectors had an impact on the downward trend of the Saudi Stock Exchange. The decline in the value of IHC shares had a negative effect on the Abu Dhabi Stock Exchange index.
After the recent meeting of the US Federal Reserve, it is expected that the interest rate outlook will remain the main driver of volatility in the regional markets this week. Despite this, stability in crude oil prices can be a positive factor for the markets. “Goldman Sachs” has predicted $100 oil.
The largest IPO in the history of Oman’s capital market
During the initial public offering stage of Oman’s QQ Gas Networks SOAG (QQ) company – which is going to offer 49% of its shares – the demand of institutional investors to buy these shares reached many times their 40% quota.
According to the minimum and maximum price considered for these shares, it is expected to earn 771 million dollars from the initial offering of two billion shares. Previously, the initial public offering of Oman Telecom in 2005 had attracted about 748 million dollars.
OQGN, which is the gas carrier of Oman, is responsible for supplying natural gas to various locations including power plants, free zones, industrial estates, LNG complexes and other customers.
This year’s six-month report of this company also tells about its strong financial position. The net profit of this company during this period is 1.1 billion dollars and its total assets are 31.2 billion dollars.
The Saudi capital market exceeded its 2022 targets
The Saudi Arabian Stock Exchange had a remarkable performance in 2022. The number of newly accepted companies was 49, that is, 204% more than the target of accepting 24 companies. In a report on the occasion of the 93rd National Day of Saudi Arabia, Mohammad Al-Kwaiz, the head of the Saudi Supervisory Authority (CMA), said that by the end of 2022, the CMA was able to achieve higher figures in a number of indicators than the projected goals of its strategic plan in the same year.
Also, the ratio of current market value to GDP exceeded the predicted target of 77% and reached 91%. The performance of the debt instrument market was also beyond the predicted target. The ratio of this market to GDP reached 32% from the predicted 18.7%.
He also mentioned the 2024-26 strategic plan of this market and said that the goal of this plan is to achieve sustainable development in the financial sector and new achievements that will have a positive impact on the financial market in particular and the financial sector in general.
Bahrain’s budget deficit of one billion dollars
According to the official news agency of Bahrain (BNA), this country recorded a budget deficit of 381 million dinars (1.01 billion dollars) in the first six months of this year.
The total income of this country during this period was 1.44 billion dinars and the total expenditure, despite registering 2% less than the expected amount, reached 1.82 billion dinars and thus the budget deficit was achieved.
The Ministry of Finance of Bahrain announced on June 30 this year that the budget deficit in 2024 is expected to decrease from 520 million dinars in 2023 to 161.4 million dinars ($428.16 million), which is due to the increase in income from oil and gas. .
Bahrain reported a GDP growth rate of 4.9 percent in 2022, the highest rate since 2013. Bahrain, which, like its neighbors, is trying to diversify its economy with the aim of less dependence on oil, announced the growth of non-oil GDP last year at 6.2 percent, which was the highest rate since 2012.
Kuwait approved the fourth comprehensive plan of 2040
Kuwait has a huge agenda and plan for petrochemicals until 2030 and 2040. The National Oil Company of this country, through its subsidiaries, is planning to deliver 10 large oil projects between 2024 and 2030 with a total price of about 19 billion dollars.
Saad Al Barak, Kuwait’s oil minister, announced this summer that Kuwait will invest more than 300 billion dollars in the energy sector by 2040. He emphasized that oil and its derivatives are an essential part of Kuwait’s economy. He added: Today, the world needs an annual investment of 500 billion dollars in the energy sector, while in 2022 it has invested only 300 billion dollars.
The country hopes to reach 2.3 million barrels per day of oil production before the end of 2024.
Kuwait’s cabinet recently approved the country’s fourth comprehensive plan in its weekly meeting. According to the official news agency of Kuwait (KUNA), the Fourth Comprehensive Plan of Kuwait 2040 focuses on the vision and goals of the country’s development in urban, economic, social and environmental policies in parallel with population growth in the future. In this program, it is said that there will be 3,297,180 employment opportunities out of the 7,254,500 population of Kuwait by that time.