https://arab.news/2h9ub
CAIRO: Qatar recorded a budget surplus of 100 million Qatari riyals ($27.43 million) in the third quarter of 2024, the finance ministry said on Wednesday.
Qatar's total revenues registered around 51.3 billion riyals in the same quarter.
RIYADH: Saudi Arabia’s residential real estate market is set for a significant surge, with private buyers expected to invest SR4.58 billion ($1.22 billion) this year, according to an analysis.
The Saudi Report 2025 by global property consultancy firm Knight Frank, conducted in collaboration with YouGov, highlights that investors are willing to pay substantial premiums for homes within the Kingdom’s mega-development projects.
The study, which surveyed 1,037 households, including 100 expatriates based in Saudi Arabia, found that SR2.75 billion of potential private capital, including SR2.62 billion from Saudi nationals and SR133.7 million from expatriates, is ready to be deployed into the Kingdom’s giga-projects.
NEOM has emerged as the most sought-after destination, with 41 percent of respondents earning over SR80,000 per month expressing an intent to spend more than SR20 million on homes in such large-scale developments.
The findings underscore the growing demand for premium residential offerings in these transformative projects, which align with the Kingdom’s Vision 2030 economic diversification agenda.
“While NEOM continues to take pole position in the hearts and minds of Saudi nationals as a location they would like to live in, its popularity has decreased from 84 percent in 2023 to 17 percent this year,” Faisal Durrani, partner and head of research for MENA at Knight Frank, said.
He continued: “There are likely to be a range of reasons for this, including the emergence of other giga-projects over the last two years, perceptions around households’ ability to afford to own a home in any of NEOM’s subprojects, a lack of ready-to-move-into homes, a lack of homes actually on the market to purchase, or a combination of the above. These factors present a clear blueprint for how NEOM’s developers can boost absorption rates once homes are made available to purchase.”
According to Knight Frank, NEOM was found to be the most desirable giga-project among Saudi nationals, although those on monthly incomes of SR10,000 to SR50,000 showed a higher level of interest in living in the Belgium-sized super-city than those with incomes in excess of SR50,000.
For the latter group, Jeddah Central had greater appeal, representing 14 percent, with NEOM following in second place.
While expats with a monthly income of over SR30,000 also favor NEOM as their most preferred location to own a home, it is notable that 20 percent of all the expats surveyed have no desire to purchase residential real estate in any of the giga-projects.
“The relatively low appetite among expats to purchase a home in any of the giga-projects likely stems from a lack of understanding of what will eventually be available, a lack of proof of concept, difficulty in navigating expat ownership rules, financing challenges, or indeed a combination of the above,” Susan Amawi, general manager at Knight Frank Saudi Arabia said.
She added: “We expect this to change over time, especially once details of the much-anticipated change to foreign ownership laws are unveiled.”
NEOM has awarded construction contracts worth $28.7 billion as of early 2025, with $100 million allocated to Magna and an additional $10.5 billion for The Line, according to an analysis by Knight Frank.
Saudi nationals and expatriates earning SR10,000 to SR20,000 per month showed the highest level of interest, followed by those with incomes between SR20,000 and SR30,000.
Meanwhile, 29 percent of respondents earning SR40,000 to SR50,000 also expressed a desire to buy a home in The Line.
However, Durrani noted a shift in preferences among higher-income groups.
“The apparent tapering in the desirability of The Line as a place to live and own a home as incomes grow could be a reflection of the perception of The Line as a ‘mass-market project,’ with those on higher incomes perhaps in favour of somewhere more exclusive,” he explained.
Durrani added: “Indeed, our results have shown that the largest proportion of those on monthly incomes of between SR70,000 and 80,000 would prefer to own a home at the Red Sea Project and King Salman Park. For this group, NEOM overall trails at just 5 percent.”
Saudi Arabia’s leading residential developer, ROSHN, has also emerged as a key player in the Kingdom’s giga-projects.
According to Knight Frank, ROSHN’s SEDRA development in Riyadh is the most sought-after project, with 39 percent of respondents selecting it as their top choice.
ROSHN’s focus on affordable homes in integrated community settings has played a pivotal role in its widespread appeal.
Other highly sought-after ROSHN developments include Warefa in Riyadh and Marafy in Jeddah.
Tariq de Jong, regional head of residential research at Knight Frank, emphasized ROSHN’s rising prominence among Saudi homebuyers.
“Away from NEOM, Saudi nationals and Saudi-based expats are actively targeting projects by ROSHN, which ranks alongside Jeddah Central as the second most popular giga project home purchase location,” Harmen de Jong, partner and regional head of Strategy & Consulting for Saudi Arabia at Knight Frank, said.
He concluded: “ROSHN has positioned itself as the Kingdom’s leading residential community developer and is working toward setting new benchmarks in creating integrated neighborhoods that blend modern living with traditional Saudi heritage, all crucially anchored by community facilities and amenities which are in high demand and in short supply.”
JEDDAH: Egypt’s parliament has approved a bilateral investment protection agreement with Saudi Arabia, aiming to boost capital inflows, create jobs, and strengthen economic ties between the two nations.
The agreement is part of a series of economic deals signed during Saudi Crown Prince Mohammed bin Salman’s October visit to the North African country, which also established the Saudi-Egyptian Supreme Coordination Council.
Both the crown prince and Egyptian President Abdel Fattah El-Sisi attended the initial signing, according to the country’s Parliament News Agency.
A report from a joint committee of Egyptian parliamentary bodies described the agreement as a key step toward enhancing economic cooperation, fostering investment opportunities, and promoting sustainable development between the two countries.
It also highlighted efforts to facilitate technology transfer, create jobs, and develop human resources through mutual investments.
“The parliamentary report also indicated that economic relations between the two countries have witnessed remarkable development in recent years, supported by a strategic partnership and joint investment projects that contribute to strengthening bilateral cooperation in various sectors, reflecting the depth of the historical relations between the two brotherly countries,” the news agency stated.
The agreement is backed by leaders, ministers, ambassadors from both nations, the Federation of Saudi Chambers of Commerce, and the Saudi-Egyptian Business Council, according to an FSC post on X.
Economic ties between the two nations have strengthened notably in recent years. The joint committee report indicated that the value of trade exchange between Egypt and Saudi Arabia increased to $6.5 billion during the first 8 months of 2024, compared to $4.9 billion during the same period in 2023, an increase of 32.7 percent, according to the Egyptian Central Agency for Public Mobilization and Statistics.
The deal supports Saudi Arabia’s Vision 2030 — an economic diversification strategy aimed at reducing reliance on oil revenues by increasing non-oil exports and strengthening regional trade alliances, including with Egypt.
In March 2022, Saudi Arabia deposited $5 billion into the Central Bank of Egypt, bringing total deposits from the Kingdom to $10.3 billion. The funds helped stabilize Egypt’s foreign exchange reserves after foreign investor withdrawals spiked following the war in Ukraine.
Saudi Arabia’s Ministry of Investment issued 789 licenses to Egyptian companies in the second quarter of 2024 — a 71 percent rise from the same period in 2023 — making the country the top recipient of the permits from the Kingdom.
RIYADH: Jordan’s inflation rate accelerated by 2.21 percent year on year in the first two months of 2025, propelled by rising prices in key commodity groups, official data showed.
According to the Department of Statistics, the general consumer price index reached 112.30 points during the period, driven by notable increases across several categories, the Jordan News Agency, also known as Petra, reported.
Personal luggage prices soared 16.69 percent year on year, tobacco and cigarettes climbed 12.73 percent, and meat and poultry rose 8.7 percent. Spices, food additives, and other food products advanced 5.32 percent, while culture and entertainment costs increased by 5.07 percent.
Jordan’s inflation rise reflects a broader surge in consumer prices, with the latest World Bank data showing a 1.2 percent increase in December and 2.6 percent in November, while Ramadan is expected to drive up food costs amid higher household consumption.
“For February 2025, inflation rose by 2.12 percent, reaching 112.36 points compared to 110.02 points in February 2024. The main contributors to this increase were personal effects — 18.39 percent, tobacco and cigarettes — 12.73 percent, meat and poultry — 8.69 percent, spices, food additives, and other foods — 5.34 percent, and culture and entertainment — 5.18 percent,” the Petra report stated.
It added that the rise was partially offset by declines in prices for furniture, carpets and bedding by 3.46 percent, clothing by 2.5 percent, household appliances by 2.31 percent, and dried and canned vegetables and legumes by 2.13 percent.
This comes as Jordan’s general consumer price index rose 2.29 percent year on year to 112.23 points in January, driven largely by significant increases in personal luggage prices.
Month on month, the index edged up 0.11 percent in February from January, led by a 2.87 percent rise in personal luggage prices, followed by fish and seafood at 1.02 percent.
Meat and poultry rose 0.97 percent, communications increased 0.75 percent, and beverages and refreshments climbed 0.55 percent.
Industrial Production Index rises
Jordan’s industrial production index also showed strength, rising 2.76 percent year on year in January to reach 88 points. Manufacturing output climbed 2.45 percent, extractive industries surged 5.95 percent, and electricity production advanced 4.52 percent.
However, on a monthly basis, the index dipped 0.53 percent in January from December, weighed down by a 1.25 percent decline in manufacturing output. This was partially offset by an 11.08 percent rise in extractive industries and a 0.5 percent increase in electricity production.
Meanwhile, Jordan’s industrial producer price index rose 0.23 percent year on year in January, reaching 107.13 points.
The increase was driven by a 0.23 percent rise in manufacturing prices and a 1.71 percent jump in extractive industries, partially offset by a 1.08 percent drop in utility prices, mainly electricity, the Petra reported.
Month-on-month, the PPI climbed 0.81 percent from December, reaching 106.26 points.
BERLIN: Siemens Energy has been awarded a $1.6-billion project to provide technology for two gas-fired power plants in Saudi Arabia, the German company said on Wednesday.
The project will allow Rumah 2 and Nairyah 2 in the country’s western and central regions to add 3.6 gigawatts of power to the national grid, Siemens Energy said in a statement.
The project, with Harbin Electric International as a contractor, includes long-term maintenance agreements to support the plants’ operational reliability over the next 25 years, it added.
“Supplying key technologies for the Rumah 2 and Nairyah 2 power plants directly supports Saudi Arabia’s energy transition and its goal of achieving net zero emissions by 2060,” said Ahmed El-Serry, head of gas services sales, Middle East.
“By manufacturing critical components at our Siemens Energy Dammam Hub, this project further strengthens local production capabilities and builds expertise within the Kingdom, contributing to a more resilient energy sector,” he added.
This order further strengthens Siemens Energy’s established presence in Saudi Arabia’s Independent Power Producer market, solidifying its role in delivering a significant share of the Kingdom’s modern power generation.
The move will build on the success of previous projects such as Taiba 2 and Qassim 2 – which together added 4 GW to the national grid.
RIYADH: Saudi banks recorded a net income of SR21.5 billion ($5.7 billion) in the fourth quarter of 2024, up from SR20 billion in the previous three-month period, according to Fitch Ratings.
The improvement was primarily driven by interest rate cuts, which enhanced net margins, alongside strong lending growth expected to outpace Gulf peers in 2025.
Fitch Ratings’ outlook aligns with S&P Global’s January projection that banks in the Kingdom will sustain stable profitability in 2025 as higher lending volumes offset lower margins while continuing to tap international capital markets for growth related to the country’s Vision 2030.
The agency estimated the average net interest margin for Saudi banks increased to 3.2 percent in the last quarter of 2024 from 3.1 percent in the first nine months of the year.
The improvement followed a 12-basis-point reduction in banks’ cost of funding to 3.2 percent after the central bank lowered interest rates by 50 basis points. Meanwhile, the yield on average earning assets remained stable at 6.3 percent.
“Banks with higher levels of retail financing benefited most,” Fitch said.
Al-Rajhi Bank and Bank Aljazira posted quarter-on-quarter NIM increases of 20 basis points to 3.4 percent and 2.3 percent, respectively.
Saudi National Bank’s NIM also improved, rising to 3 percent in the fourth quarter from 2.7 percent in the previous one.
Strong annual performance
Banks in the Kingdom reported a combined net profit of SR80 billion in 2024, up from SR70 billion in 2023, with the sector’s average return on equity climbing to 15 percent from 14 percent.
The rise in earnings was supported by robust growth and a lower cost of risk, which dropped to 30 basis points from 40 basis points a year earlier, reflecting a healthy operating environment.
Lending activity remained strong, expanding by SR87 billion in the last quarter of 2024. Al-Rajhi Bank led the growth with an increase of SR44 billion, evenly split between its retail and corporate segments.
Annually, gross financing at Saudi banks grew by an average of 14 percent, up from 11 percent in 2023.
Saudi Awwal Bank, the Saudi Investment Bank, and Bank Aljazira recorded above-average growth.
Fitch forecasted financial institutes in the Kingdom to “continue outpacing Gulf peers in 2025,” with sector financing projected to rise by 12 percent, supported by further rate cuts and improved liquidity.
Deposit trends and liquidity management
Customer deposits at Saudi banks declined by SR35 billion in the last quarter — the first quarterly drop since 2019.
Fitch attributed this to seasonal factors and expects deposits to rebound in the first three months of this year, as in previous years. In January, deposits increased by SR40 billion, according to data from the Saudi Central Bank.
SNB experienced the largest deposit outflow in the fourth quarter, with its balance declining by SR54 billion, including an SR30 billion drop in current and savings deposits.
They accounted for 72 percent of SNB’s total deposit base. To offset the decline, the bank utilized repo facilities and money market deposits, leading to an increase in its Fitch-calculated loans-to-deposits ratio to 115 percent by year-end, compared to a sector average of 105 percent. The bank’s regulatory loans-to-deposits ratio remained at 84 percent.
Stable external liabilities and asset quality
Saudi banks’ external liabilities remained steady at around SR0.4 trillion at the end of the fourth quarter, representing 11 percent of total sector funding.
“We expect Saudi banks to gradually increase their reliance on external funding, especially if corporate borrowers continue to demand foreign-currency financing, but net foreign assets will remain below 2 percent in 2025,” the agency said.
The sector’s impaired financing balance decreased by SR2 billion in the last three months of 2024, contributing to a decline in the impaired financing ratio to 1.4 percent from 1.7 percent at the end of 2023.
Provision coverage of impaired financing remained strong at 114 percent by year-end, and Fitch expected Saudi banks’ asset quality metrics to remain robust in 2025.
Capital adequacy and sector outlook
The sector’s Common Equity Tier 1 ratio decreased by 80 basis points to 15.7 percent in 2024 due to growth and dividend distributions.
However, the Tier 1 and total capital adequacy ratio declines were more moderate, at 30-40 basis points, as banks issued Additional Tier 1 and subordinated debt.
