Latest news with #KamcoInvestment
Zawya
22-05-2025
- Business
- Zawya
Oman inflation contained despite global trade shocks
Muscat – Inflationary pressures in Oman and across the GCC region remained contained during the first quarter of 2025, highlighting a broader regional trend of price stability amid global trade tensions. Oman's annual inflation rate – based on the Consumer Price Index (CPI) – rose by a modest 0.5% year-on-year in March, down from 0.9% in February. The subdued inflation reflects overall price stability across consumer categories, according to the latest CPI data released by the National Centre for Statistics and Information (NCSI). 'Oman continues to record one of the lowest inflation rates in the GCC, supported by sound fiscal discipline and rising non-oil exports. On a month-on-month basis, Oman's inflation declined by 0.4% in March 2025 compared to February 2025,' Kamco Investment stated in its GCC Inflation Report released on Wednesday. According to NCSI data, the largest price increases in March were recorded in miscellaneous goods and services (up 6.1%), followed by health (up 3.2%) and transport (up 1.8%). Conversely, the index for food and non-alcoholic beverages fell by 0.7%, driven largely by a 10.2% decline in vegetable prices and a 7.0% drop in seafood prices. Among the six GCC member states, only Saudi Arabia and the United Arab Emirates registered annual inflation rates exceeding 2% in March, reflecting an overall muted inflationary environment, the Kamco Investment report noted. 'In comparison with inflationary trends across the wider Middle East and North Africa (MENA) region, the GCC continues to perform favourably, with price levels remaining well below the regional average. This divergence is expected to persist through the remainder of the year, supported by moderating energy prices, expectations of relatively stable global exchange rates following recent volatility, and prudent monetary policy,' the report said. However, the report also warned that 'downside risks – particularly uncertainties surrounding evolving global trade dynamics, including recently imposed tariff measures – could potentially disrupt this disinflationary momentum and reignite upward pressure on prices, especially within more vulnerable MENA economies.' 'GCC inflation, across the board, has remained well-anchored, supported by stable currencies pegged to the US dollar and continued government subsidies in sectors such as energy, food, and housing,' the report added. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Muscat Daily
21-05-2025
- Business
- Muscat Daily
Oman inflation contained despite global trade shocks
Gulam Ali Khan Muscat – Inflationary pressures in Oman and across the GCC region remained contained during the first quarter of 2025, highlighting a broader regional trend of price stability amid global trade tensions. Oman's annual inflation rate – based on the Consumer Price Index (CPI) – rose by a modest 0.5% year-on-year in March, down from 0.9% in February. The subdued inflation reflects overall price stability across consumer categories, according to the latest CPI data released by the National Centre for Statistics and Information (NCSI). 'Oman continues to record one of the lowest inflation rates in the GCC, supported by sound fiscal discipline and rising non-oil exports. On a month-on-month basis, Oman's inflation declined by 0.4% in March 2025 compared to February 2025,' Kamco Investment stated in its GCC Inflation Report released on Wednesday. According to NCSI data, the largest price increases in March were recorded in miscellaneous goods and services (up 6.1%), followed by health (up 3.2%) and transport (up 1.8%). Conversely, the index for food and non-alcoholic beverages fell by 0.7%, driven largely by a 10.2% decline in vegetable prices and a 7.0% drop in seafood prices. Among the six GCC member states, only Saudi Arabia and the United Arab Emirates registered annual inflation rates exceeding 2% in March, reflecting an overall muted inflationary environment, the Kamco Investment report noted. 'In comparison with inflationary trends across the wider Middle East and North Africa (MENA) region, the GCC continues to perform favourably, with price levels remaining well below the regional average. This divergence is expected to persist through the remainder of the year, supported by moderating energy prices, expectations of relatively stable global exchange rates following recent volatility, and prudent monetary policy,' the report said. However, the report also warned that 'downside risks – particularly uncertainties surrounding evolving global trade dynamics, including recently imposed tariff measures – could potentially disrupt this disinflationary momentum and reignite upward pressure on prices, especially within more vulnerable MENA economies.' 'GCC inflation, across the board, has remained well-anchored, supported by stable currencies pegged to the US dollar and continued government subsidies in sectors such as energy, food, and housing,' the report added.
Zawya
21-05-2025
- Business
- Zawya
GCC projects pipeline remains strong despite Q1 dip
Muscat – Following a record-breaking year for project awards, the GCC region is projected to experience another year of robust contracts activity, with the outlook for the GCC project market remaining strong for 2025, according to a new report released by Kamco Investment. Numerous favourable factors across the GCC are expected to support momentum in the project market in 2025. Among these is notable growth in GCC hospitality projects during the year, Kuwait-based Kamco Investment said in its recently released GCC Projects Market report. Overall, GCC countries hold approximately $1.54tn in contracts at the pre-execution stage, with Saudi Arabia accounting for the largest share (52.1%), the report said, citing MEED Projects data. 'A number of these projects are anticipated to be awarded within the next 6–12 months, indicating that 2025 could rival or surpass the award volumes of 2024,' the report noted. 'Roughly 34.3% of these contracts are in the design phase, while about 8.1% are currently under bid evaluation.' Looking at country-specific project pipelines, the report highlighted that Saudi Arabia leads with $801.2bn in pre-execution stage projects, followed by the UAE ($312.3bn), Oman ($169.9bn), and Kuwait ($130.8bn), respectively. According to MEED Projects data, healthcare contracts worth over $3bn are currently out to bid, signalling a strong project pipeline. Saudi Arabia leads with 51% of the total value of the GCC healthcare pipeline in 2025. In comparison, the UAE has $6.8bn in contracts under planning and execution, while Kuwait has $3.6bn in hospitality projects at similar stages. Impact of US tariffs The Kamco Investment report noted that, on the surface, there appears to be no immediate threat of US tariffs impacting the GCC projects market, as most GCC countries have limited trade exposure to the US in both imports and exports. It further stated that the US maintains trade surpluses with five of the six GCC markets, and as a result, a basic tariff of 10% has been imposed. In addition, hydrocarbons – the primary export commodity of GCC nations – are among the goods exempted from tariffs. 'However, declining oil prices, driven by negative global economic sentiment linked to the effects of US tariffs on trade, may have an impact on GCC revenues and, consequently, their project funding capabilities. Reduced oil prices lead to lower government income across the GCC, which in turn may result in reduced spending on projects,' the report added. Contracts decline in Q1 The total value of contracts awarded in the GCC declined after three of the six member countries recorded year-on-year decreases in project awards during Q1 2025. The total value of contracts awarded in the GCC fell by 26.8% year-on-year in Q1 2025, totalling $52.4bn – the lowest figure in the past eight quarters – compared to $71.5bn in Q1 2024. 'This downturn was primarily attributable to a sharp contraction in Saudi Arabia's project awards, despite resilient performance from the UAE, which recorded moderate year-on-year growth. The power and construction sectors were the main contributors to the decline in Qatar, Bahrain, and Saudi Arabia during Q1 2025,' the report said. However, despite the significant year-on-year drop in Q1 2025, GCC project awards are projected to align with 2024 levels. MEED Projects, as cited in the Kamco Investment report, estimates that approximately $235bn worth of contracts are currently tendered or under bid evaluation across the GCC, with Saudi Arabia accounting for nearly two-thirds of this pipeline. On a quarterly basis, Saudi Arabia's total contract awards plummeted by 49.9% in Q1 2025 to $17bn, down from $33.9bn in Q1 2024. In contrast, Kuwait's aggregate project awards surged by 197.6% in Q1 2025, reaching $1.4bn. Meanwhile, the UAE posted an 11.7% increase in contract awards during Q1 2025, totalling $26.1bn, up from $23.4bn in Q1 2024. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Muscat Daily
20-05-2025
- Business
- Muscat Daily
GCC projects pipeline remains strong despite Q1 dip
Muscat – Following a record-breaking year for project awards, the GCC region is projected to experience another year of robust contracts activity, with the outlook for the GCC project market remaining strong for 2025, according to a new report released by Kamco Investment. Numerous favourable factors across the GCC are expected to support momentum in the project market in 2025. Among these is notable growth in GCC hospitality projects during the year, Kuwait-based Kamco Investment said in its recently released GCC Projects Market report. Overall, GCC countries hold approximately $1.54tn in contracts at the pre-execution stage, with Saudi Arabia accounting for the largest share (52.1%), the report said, citing MEED Projects data. 'A number of these projects are anticipated to be awarded within the next 6–12 months, indicating that 2025 could rival or surpass the award volumes of 2024,' the report noted. 'Roughly 34.3% of these contracts are in the design phase, while about 8.1% are currently under bid evaluation.' Looking at country-specific project pipelines, the report highlighted that Saudi Arabia leads with $801.2bn in pre-execution stage projects, followed by the UAE ($312.3bn), Oman ($169.9bn), and Kuwait ($130.8bn), respectively. According to MEED Projects data, healthcare contracts worth over $3bn are currently out to bid, signalling a strong project pipeline. Saudi Arabia leads with 51% of the total value of the GCC healthcare pipeline in 2025. In comparison, the UAE has $6.8bn in contracts under planning and execution, while Kuwait has $3.6bn in hospitality projects at similar stages. Impact of US tariffs The Kamco Investment report noted that, on the surface, there appears to be no immediate threat of US tariffs impacting the GCC projects market, as most GCC countries have limited trade exposure to the US in both imports and exports. It further stated that the US maintains trade surpluses with five of the six GCC markets, and as a result, a basic tariff of 10% has been imposed. In addition, hydrocarbons – the primary export commodity of GCC nations – are among the goods exempted from tariffs. 'However, declining oil prices, driven by negative global economic sentiment linked to the effects of US tariffs on trade, may have an impact on GCC revenues and, consequently, their project funding capabilities. Reduced oil prices lead to lower government income across the GCC, which in turn may result in reduced spending on projects,' the report added. Contracts decline in Q1 The total value of contracts awarded in the GCC declined after three of the six member countries recorded year-on-year decreases in project awards during Q1 2025. The total value of contracts awarded in the GCC fell by 26.8% year-on-year in Q1 2025, totalling $52.4bn – the lowest figure in the past eight quarters – compared to $71.5bn in Q1 2024. 'This downturn was primarily attributable to a sharp contraction in Saudi Arabia's project awards, despite resilient performance from the UAE, which recorded moderate year-on-year growth. The power and construction sectors were the main contributors to the decline in Qatar, Bahrain, and Saudi Arabia during Q1 2025,' the report said. However, despite the significant year-on-year drop in Q1 2025, GCC project awards are projected to align with 2024 levels. MEED Projects, as cited in the Kamco Investment report, estimates that approximately $235bn worth of contracts are currently tendered or under bid evaluation across the GCC, with Saudi Arabia accounting for nearly two-thirds of this pipeline. On a quarterly basis, Saudi Arabia's total contract awards plummeted by 49.9% in Q1 2025 to $17bn, down from $33.9bn in Q1 2024. In contrast, Kuwait's aggregate project awards surged by 197.6% in Q1 2025, reaching $1.4bn. Meanwhile, the UAE posted an 11.7% increase in contract awards during Q1 2025, totalling $26.1bn, up from $23.4bn in Q1 2024.
Zawya
22-04-2025
- Business
- Zawya
Profits of Oman's listed companies decline 13.7% to $3.4bln in 2024
Muscat – Total net profits for listed companies in Oman declined by 13.7% year-on-year to $3.4bn in the financial year 2024, compared with $3.9bn in the previous year, primarily due to a drop in earnings from energy sector firms, according to a research report. The decline in aggregate profits of listed firms was driven by the energy sector, which alone accounted for over 30% of the total net profits on the Muscat Stock Exchange (MSX) during the financial year 2024. Furthermore, sectors such as insurance, transportation, and food and beverages also recorded significant drops in net profit during 2024, as per the GCC Corporate Earnings Report released by Kamco Investment. Total net profits for the energy sector fell by 43.8% year-on-year to $1.0bn in 2024, compared with $1.8bn in 2023. In contrast, full-year 2024 earnings for the banking sector – the largest sector by market capitalisation on the Muscat Stock Exchange – rose by 15.2% to $1.4bn, up from $1.2bn in 2023. Within the banking sector, net profits for Bank Muscat increased by 6.2% to reach $585.9mn in 2024, compared with $551.8mn in 2023. The utilities sector recorded the second-largest growth in total net profits, reaching $261.6mn in 2024, a 51.8% year-on-year increase from $130.9mn in 2023. Within the utilities sector, Phoenix Power Company led with total profits of $59.7mn in 2024, up 4.9% year-on-year. Similarly, Sembcorp Salalah reported 2024 net profits of $58.4mn, compared with $53.3mn in 2023. Aggregate net profits for the telecoms sector increased by 5.0% to $233.2mn in 2024, compared with $222mn in 2023. The growth in total net earnings for the sector came as both constituent companies posted year-on-year increases in profits, led by Omantel ($202.7mn) and Ooredoo Oman ($30.5mn). Profits in Q4 2024 jump On a quarterly basis, total net profits of companies listed on the Muscat Stock Exchange surged by 83.4% year-on-year to $702.4mn in Q4 2024, compared with $383mn in the same quarter of 2023, the report showed. Total Q4 2024 earnings of the banking sector rose by 29% to reach $258.9mn, up from $200.7mn in Q4 2023. The energy sector recorded the second-largest net profits during Q4 2024, reaching $182.8mn compared with $40.4mn in Q4 2023, marking a 350.9% year-on-year growth, mainly due to the listing of OQ Exploration & Production Company (OQEP). GCC corporate earnings According to the Kamco Investment report, a decline in earnings for energy and utilities companies weighed on GCC corporate profit growth in Q4 2024. Quarterly net profits reported by companies listed on GCC exchanges continued to decline sequentially, reaching a three-quarter low during Q4 2024. Aggregate profits during the quarter dropped by 5% quarter-on-quarter to $57.3bn, as a broad-based fall in profits across most exchanges outweighed gains recorded by companies listed in Dubai and Abu Dhabi. However, on a year-on-year basis, aggregate profits for the quarter recorded marginal growth of 2.0%, as strong profit gains across most exchanges were partially offset by a decline in aggregate earnings for companies listed on the Abu Dhabi exchange. At the country level, profit growth was highest for companies listed on the Oman exchange, which posted an 83.4% year-on-year increase in Q4 2024, followed by Bahrain and Kuwait with profit growth of 43.2% and 37.1%, respectively. Saudi-listed companies recorded modest year-on-year profit growth of 3.1%, while corporates in Dubai and Qatar registered growth of around 20%.
