Most Gulf stocks inch lower as global sentiment sours
May 19 (Reuters) - Most Gulf stocks were trading lower early on Monday as Asian shares fell and oil prices weakened, while investor sentiment was rattled by mixed economic data from China and a downgrade of the U.S. credit rating.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab was down 0.8%, while Wall Street share futures slipped as concerns over unpredictable U.S. economic policies were amplified by Moody's downgrade of the country's credit rating.
Meanwhile in China, official data showed growth in industrial output slowed in April, though still fared better than economists had expected.
The downgrade and mixed data also weighed on oil prices with front-month Brent crude futures falling 0.8% by 0630 GMT.
Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.2%, weighed by a near 3% drop in construction firm Retal Urban Development Company SJSC (4322.SE), opens new tab.
Among gainers on the index, insurance firm Allied Cooperative Insurance Group (8150.SE), opens new tab surged 14.65% after it announced a announced a 1 for 0.72 rights issue.
Meanwhile, Abu Dhabi's benchmark index (.FTFADGI), opens new tab was down 0.12% and Kuwait's benchmark index (.BKP), opens new tab fell 0.21%.
Bucking the trend, Dubai's main share index (.DFMGI), opens new tab rose 0.45% supported by a 5.26% rise in public parking spaces provider Parkin Company (PARKIN.DU), opens new tab.
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The Independent
5 hours ago
- The Independent
Lebanon aims to bring tourists back to its beaches as travel bans finally lift
In a bid to revive Lebanon 's tourism sector, the Tourism Ministry recently hosted a retro-themed event at Beirut 's St. Georges Hotel. Fireworks illuminated the night sky above the Mediterranean Sea, while classic hits from the 1960s and 70s played in the background. The event aimed to evoke the "golden era" before the civil war of 1975, when Lebanon was a prime destination for wealthy tourists from the Gulf, drawn to its beaches, mountains, and vibrant nightlife. The event hopes to promote the upcoming summer season. In the decade after the war, tourists from Gulf countries – and crucially, Saudi Arabia – came back, and so did Lebanon's economy. But by the early 2000s, as the Iran -backed militant group Hezbollah gained power, Lebanon's relations with Gulf countries began to sour. Tourism gradually dried up, starving its economy of billions of dollars in annual spending. Now, after last year's bruising war with Israel, Hezbollah is much weaker and Lebanon's new political leaders sense an opportunity to revitalize the economy once again with help from wealthy neighbors. They aim to disarm Hezbollah and rekindle ties with Saudi Arabia and other Gulf countries, which in recent years have prohibited their citizens from visiting Lebanon or importing its products. 'Tourism is a big catalyst, and so it's very important that the bans get lifted,' said Laura Khazen Lahoud, the country's tourism minister. On the highway leading to the Beirut airport, once-ubiquitous banners touting Hezbollah's leadership have been replaced with commercial billboards and posters that read 'a new era for Lebanon.' In the center of Beirut, and especially in neighborhoods that hope to attract tourists, political posters are coming down, and police and army patrols are on the rise. There are signs of thawing relations with some Gulf neighbors. The United Arab Emirates and Kuwait have lifted yearslong travel bans. All eyes are now on Saudi Arabia, a regional political and economic powerhouse, to see if it will follow suit, according to Lahoud and other Lebanese officials. A key sticking point is security, these officials say. Although a ceasefire with Israel has been in place since November, near-daily airstrikes have continued in southern and eastern Lebanon, where Hezbollah over the years had built its political base and powerful military arsenal. As vital as tourism is — it accounted for almost 20% of Lebanon's economy before it tanked in 2019 — the country's leaders say it is just one piece of a larger puzzle they are trying to put back together. Lebanon's agricultural and industrial sectors are in shambles, suffering a major blow in 2021, when Saudi Arabia banned their exports after accusing Hezbollah of smuggling drugs into Riyadh. Years of economic dysfunction have left the country's once-thriving middle class in a state of desperation. The World Bank says poverty nearly tripled in Lebanon over the past decade, affecting close to half its population of nearly 6 million. To make matters worse, inflation is soaring, with the Lebanese pound losing 90% of its value, and many families lost their savings when banks collapsed. Tourism is seen by Lebanon's leaders as the best way to kickstart the reconciliation needed with Gulf countries -- and only then can they move on to exports and other economic growth opportunities. 'It's the thing that makes most sense, because that's all Lebanon can sell now,' said Sami Zoughaib, research manager at The Policy Initiative, a Beirut-based think tank. With summer still weeks away, flights to Lebanon are already packed with expats and locals from countries that overturned their travel bans, and hotels say bookings have been brisk. At the event hosted last month by the tourism ministry, the owner of the St. Georges Hotel, Fady El-Khoury, beamed. The hotel, owned by his father in its heyday, has acutely felt Lebanon's ups and downs over the decades, closing and reopening multiple times because of wars. 'I have a feeling that the country is coming back after 50 years,' he said. On a recent weekend, as people crammed the beaches of the northern city of Batroun, and jet skis whizzed along the Mediterranean, local business people sounded optimistic that the country was on the right path. 'We are happy, and everyone here is happy,' said Jad Nasr, co-owner of a private beach club. 'After years of being boycotted by the Arabs and our brothers in the Gulf, we expect this year for us to always be full.' Still, tourism is not a panacea for Lebanon's economy, which for decades has suffered from rampant corruption and waste. Lebanon has been in talks with the International Monetary Fund for years over a recovery plan that would include billions in loans and require the country to combat corruption, restructure its banks, and bring improvements to a range of public services, including electricity and water. Without those and other reforms, Lebanon's wealthy neighbors will lack confidence to invest there, experts said. A tourism boom alone would serve as a 'morphine shot that would only temporarily ease the pain" rather than stop the deepening poverty in Lebanon, Zoughaib said. The tourism minister, Lahoud, agreed, saying a long-term process has only just begun. "But we're talking about subjects we never talked about before,' she said. 'And I think the whole country has realized that war doesn't serve anyone, and that we really need our economy to be back and flourish again.'
The Independent
10 hours ago
- The Independent
Lebanon aims to lure back wealthy Gulf tourists to jumpstart its war-torn economy
Fireworks lit up the night sky over Beirut's famous St. Georges Hotel as hit songs from the 1960s and 70s filled the air in a courtyard overlooking the Mediterranean Sea. The retro-themed event was hosted last month by Lebanon's Tourism Ministry to promote the upcoming summer season and perhaps recapture some of the good vibes from an era viewed as a golden one for the country. In the years before a civil war began in 1975, Lebanon was the go-to destination for wealthy tourists from neighboring Gulf countries seeking beaches in summer, snow-capped mountains in winter and urban nightlife year-round. In the decade after the war, tourists from Gulf countries – and crucially, Saudi Arabia – came back, and so did Lebanon's economy. But by the early 2000s, as the Iran-backed militant group Hezbollah gained power, Lebanon's relations with Gulf countries began to sour. Tourism gradually dried up, starving its economy of billions of dollars in annual spending. Now, after last year's bruising war with Israel, Hezbollah is much weaker and Lebanon's new political leaders sense an opportunity to revitalize the economy once again with help from wealthy neighbors. They aim to disarm Hezbollah and rekindle ties with Saudi Arabia and other Gulf countries, which in recent years have prohibited their citizens from visiting Lebanon or importing its products. 'Tourism is a big catalyst, and so it's very important that the bans get lifted,' said Laura Khazen Lahoud, the country's tourism minister. On the highway leading to the Beirut airport, once-ubiquitous banners touting Hezbollah's leadership have been replaced with commercial billboards and posters that read 'a new era for Lebanon.' In the center of Beirut, and especially in neighborhoods that hope to attract tourists, political posters are coming down, and police and army patrols are on the rise. There are signs of thawing relations with some Gulf neighbors. The United Arab Emirates and Kuwait have lifted yearslong travel bans. All eyes are now on Saudi Arabia, a regional political and economic powerhouse, to see if it will follow suit, according to Lahoud and other Lebanese officials. A key sticking point is security, these officials say. Although a ceasefire with Israel has been in place since November, near-daily airstrikes have continued in southern and eastern Lebanon, where Hezbollah over the years had built its political base and powerful military arsenal. Tourism as a diplomatic and economic bridge As vital as tourism is — it accounted for almost 20% of Lebanon's economy before it tanked in 2019 — the country's leaders say it is just one piece of a larger puzzle they are trying to put back together. Lebanon's agricultural and industrial sectors are in shambles, suffering a major blow in 2021, when Saudi Arabia banned their exports after accusing Hezbollah of smuggling drugs into Riyadh. Years of economic dysfunction have left the country's once-thriving middle class in a state of desperation. The World Bank says poverty nearly tripled in Lebanon over the past decade, affecting close to half its population of nearly 6 million. To make matters worse, inflation is soaring, with the Lebanese pound losing 90% of its value, and many families lost their savings when banks collapsed. Tourism is seen by Lebanon's leaders as the best way to kickstart the reconciliation needed with Gulf countries -- and only then can they move on to exports and other economic growth opportunities. 'It's the thing that makes most sense, because that's all Lebanon can sell now,' said Sami Zoughaib, research manager at The Policy Initiative, a Beirut-based think tank. With summer still weeks away, flights to Lebanon are already packed with expats and locals from countries that overturned their travel bans, and hotels say bookings have been brisk. At the event hosted last month by the tourism ministry, the owner of the St. Georges Hotel, Fady El-Khoury, beamed. The hotel, owned by his father in its heyday, has acutely felt Lebanon's ups and downs over the decades, closing and reopening multiple times because of wars. 'I have a feeling that the country is coming back after 50 years,' he said. On a recent weekend, as people crammed the beaches of the northern city of Batroun, and jet skis whizzed along the Mediterranean, local business people sounded optimistic that the country was on the right path. 'We are happy, and everyone here is happy,' said Jad Nasr, co-owner of a private beach club. 'After years of being boycotted by the Arabs and our brothers in the Gulf, we expect this year for us to always be full.' Still, tourism is not a panacea for Lebanon's economy, which for decades has suffered from rampant corruption and waste. Lebanon has been in talks with the International Monetary Fund for years over a recovery plan that would include billions in loans and require the country to combat corruption, restructure its banks, and bring improvements to a range of public services, including electricity and water. Without those and other reforms, Lebanon's wealthy neighbors will lack confidence to invest there, experts said. A tourism boom alone would serve as a 'morphine shot that would only temporarily ease the pain" rather than stop the deepening poverty in Lebanon, Zoughaib said. The tourism minister, Lahoud, agreed, saying a long-term process has only just begun. "But we're talking about subjects we never talked about before,' she said. 'And I think the whole country has realized that war doesn't serve anyone, and that we really need our economy to be back and flourish again.'
BBC News
17 hours ago
- BBC News
Hajj in Mecca: The decades-old intrigue around an Indian guest house
As the annual Hajj pilgrimage draws to a close, a long-settled corner of Mecca is stirring up a storm thousands of miles away in India - not for its spiritual significance, but for a 50-year-old inheritance the heart of the controversy is Keyi Rubath, a 19th-Century guest house built in the 1870s by Mayankutty Keyi, a wealthy Indian merchant from Malabar (modern-day Kerala), whose trading empire stretched from Mumbai to near Islam's holiest site, Masjid al-Haram, the building was demolished in 1971 to make way for Mecca's expansion. Saudi authorities deposited 1.4 million riyals (about $373,000 today) in the kingdom's treasury as compensation, but said no rightful heir could be identified at the later, that sum - still held in Saudi Arabia's treasury - has sparked a bitter tussle between two sprawling branches of the Keyi family, each trying to prove its lineage and claim what they see as their rightful side has succeeded so far. For decades, successive Indian governments - both at the Centre and in Kerala - have tried and failed to resolve the remains unclear if Saudi authorities are even willing to release the compensation, let alone adjust it for inflation as some family members now demand - with some claiming it could be worth over $1bn today. Followers of the case note the property was a waqf - an Islamic charitable endowment - meaning descendants can manage but not own Saudi department that handles Awqaf (endowed properties) did not respond to the BBC's request for comment, and the government has made no public statement on the hasn't stopped speculation - about both the money and who it rightfully belongs is known about the guest house itself, but descendants claim it stood just steps from the Masjid al-Haram, with 22 rooms and several halls spread over 1.5 acres. According to family lore, Keyi shipped wood from Malabar to build it and appointed a Malabari manager to run it - an ambitious gesture, though not unusual for the time. Saudi Arabia was a relatively poor country back then - the discovery of its massive oil fields still a few decades Hajj pilgrimage and the city's importance in Islam meant that Indian Muslims often donated money or built infrastructure for Indian pilgrims his 2014 book, Mecca: The Sacred City, historian Ziauddin Sardar notes that during the second half of the 18th Century, the city had acquired a distinctively Indian character with its economy and financial well-being dependent on Indian Muslims."Almost 20% of the city's inhabitants, the largest single majority, were now of Indian origins – people from Gujarat, Punjab, Kashmir and Deccan, all collectively known locally as the Hindis," Sardar Saudi Arabia's oil wealth surged in the 20th century, sweeping development projects reshaped Mecca. Keyi Rubath was demolished three times, the final time in the early when the confusion around compensation appears to have started. According to BM Jamal, former secretary of India's Central Waqf Council, the Indian consulate in Jeddah wrote to the government back then, seeking details of Mayankutty Keyi's legal heir. "In my understanding, authorities were looking for the descendants to appoint a manager for the property, not to distribute the compensation money," Mr Jamal two factions stepped forward: the Keyis - Mayankutty's paternal family - and the Arakkals, a royal family from Kerala into which he had married. Both families traditionally followed a matrilineal inheritance system - a custom not recognized under Saudi law, adding further Keyis claim that Mayankutty died childless, making his sister's children his rightful heirs under matrilineal tradition. But the Arakkals claim he had a son and a daughter, and therefore, under Indian law, his children would be the legal inheritors. As the dispute dragged on, the story took on a life of its own. In 2011, after rumours swirled that the compensation could be worth millions, more than 2,500 people flooded a district office in Kannur, claiming to be Keyi's descendants."There were people who claimed that their forefathers had taught Mayankutty in his childhood. Others claimed that their forefathers had provided timber for the guest house," a senior Keyi family member, who wanted to stay anonymous, told the followed. State officials say in 2017 fraudsters posing as Keyi descendants duped locals into handing over money, promising a share of the compensation. Today, the case remains unresolved. Some descendants propose the best way to end the dispute would be to ask the Saudi government to use the compensation money to build another guest house for Hajj pilgrims, as Myankutti Keyi had others reject this, arguing that the guest house was privately owned, and so any compensation rightfully belongs to the argue that even if the family proves lineage to Mayankutty Keyi, without ownership documents, they're unlikely to gain Muhammed Shihad, a Kannur resident who has co-authored a book on the history of the Keyi and Arakkal families, though, the dispute is not just about the money - but about honouring the family's roots. "If they don't get the compensation, it would be worth openly recognising the family's and the region's connection to this noble act."
