Latest news with #MohammedAlFarraj
Asharq Al-Awsat
2 days ago
- Business
- Asharq Al-Awsat
Strong Rebound in Gulf Financial Markets Following Ceasefire Announcement
Gulf financial markets recorded significant gains on Tuesday, driven by improved investor sentiment following the announcement of a ceasefire agreement between Iran and Israel. The development eased geopolitical concerns that had weighed heavily on the region's markets over the past two weeks. US President Donald Trump announced a full ceasefire late Monday, potentially bringing an end to a 12-day war that had led to mass evacuations from Tehran and raised fears of further regional escalation. Over the past two days, Gulf markets had already begun to show mixed but generally positive performance, recovering from consecutive losses since the conflict began. Saudi Arabia's main index, the Tadawul All Share Index (TASI), closed up 2.4%, reaching 10,964 points, marking its second consecutive day of gains. Trading volumes hit their highest levels of the year. Al Rajhi Bank led the rally with a 2.8% gain, while Aramco shares continued to decline by 2%, closing at SAR24.34, their lowest level in four years. In the UAE, the Abu Dhabi Securities Exchange saw its largest daily gain since October 18, 2022, rising by 2.5%. Meanwhile, the Dubai Financial Market index jumped 3.4%, achieving its strongest daily performance since December 16. Kuwait's Premier Market Index also rose by 2.4%, its best showing since April 8, and Qatar's main index climbed 1.9%, its strongest daily performance since April 10. Commenting on the rally, Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the Gulf markets' positive reaction was a natural response to the easing of geopolitical tensions after the Iran-Israel ceasefire. He noted that much of the rebound was driven by short-term investors and speculators seeking to benefit from the upward correction sparked by political relief. Al-Farraj stressed that Saudi Arabia's market has become more resilient and mature in the face of oil price volatility, thanks to its ongoing economic diversification under Vision 2030. He highlighted that non-oil revenues accounted for approximately 40% of total government income in 2024, an indicator of a positive structural shift in the Saudi economy. Sectors like tourism, logistics, and mining are increasingly contributing to the country's GDP, enhancing the Saudi market's long-term appeal for both domestic and international investors. Regarding the broader region, Al-Farraj said that while Gulf markets remain closely tied to oil price movements - which affect government revenues and corporate profits - the Saudi market is advancing steadily toward reducing its oil dependency, boosting its ability to weather market fluctuations and enhancing its investment resilience.
Asharq Al-Awsat
3 days ago
- Business
- Asharq Al-Awsat
Saudi Sovereign Wealth Fund Launches First Global Commercial Paper Program
The Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, has launched its first-ever global commercial paper program, marking a significant step in strengthening its short-term financing capabilities and expanding its reach in international capital markets. According to an official statement, the program allows for the issuance of commercial paper through Special Purpose Vehicles (SPVs). It consists of two sub-programs: one for the US market and another for the European market. The program has already earned top credit ratings: Moody's assigned it a Prime-1 (P-1) rating, the highest short-term grade, while Fitch Ratings awarded an F1+ rating, also its highest for short-term instruments. Fahad AlSaif, Head of Global Capital Finance and Head of Investment Strategy at PIF, said the launch aligns with the Fund's broader financing strategy. 'This program reflects our flexible and effective approach to funding, designed to support our long-term investment priorities,' he noted. Commercial paper is widely used in global financial markets as a tool for short-term liquidity management. PIF's program is expected to enhance its agility in managing cash flow while complementing its long-term funding plans. Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the initiative highlights PIF's commitment to robust liquidity management and its ambition to lead both domestically and internationally. He called the move a 'strategic addition' to PIF's funding ecosystem, noting that the strong credit ratings will allow the Fund to secure financing at competitive rates, positioning it to capitalize on key investment opportunities without being overly exposed to short-term market volatility or interest rate risks. Al-Farraj added that the launch supports PIF's strategy to diversify its funding sources and balance short-term needs with long-term goals. He pointed out that it will help drive major projects in critical sectors such as renewable energy, future industries, and advanced technology - key pillars of Saudi Arabia's Vision 2030. He also emphasized the program's role in strengthening Saudi Arabia's standing as a global financial hub and increasing its appeal to international investors. The initiative follows PIF's broader financing roadmap, which includes issuing green bonds - such as its landmark $3.5 billion sukuk offering - and reflects its continued pursuit of innovative, sustainable funding solutions to fuel the Kingdom's economic transformation.
