ARAB NEWS: The UAE’s tourism and real estate sectors could receive a boost from the speed of the country's vaccination program, said a new report.
Normalization of ties with Qatar and Israel could also support investment according to a report from S&P Global Ratings.
The United Arab Emirates (UAE) is reportedly leading the vaccination effort in the region, with the immunization rate at 55 percent to 60 percent of the population, the second highest globally,” S&P said in a report on Monday. “High vaccination rates could help the UAE’s tourism sector recover earlier than others.”
The ratings agency expects economic growth in Dubai to recover this year from the sharp recession of 2020 triggered by the twin blow of the pandemic and low oil prices.
“However, we expect real estate companies’ profitability to remain under pressure and leverage to be high,” said S&P Global Ratings credit analyst Sapna Jagtiani. “Absent a substantial recovery in revenue, companies are likely to focus on cost optimization, proactively managing their liquidity, and preserving their cash flows. Rated Dubai-based real estate companies still have good liquidity and access to funding, however, despite currently trying times.”
Last year, Dubai saw the sharpest population decline in the Gulf Cooperation Council (GCC) - dropping by 8.4 percent versus the region average of 4 percent, S&P said.
World’s second highest immunization rate to help Dubai tourism bounce back quicker: S&P
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World’s second highest immunization rate to help Dubai tourism bounce back quicker: S&P
- The UAE is reportedly leading the vaccination effort in the region
Closing Bell: Saudi main index closes in red at 10,325
RIYADH: Saudi Arabia’s Tadawul All Share Index edged down on Monday, shedding 38.83 points, or 0.37 percent, to close at 10,325.20.
The total trading turnover of the benchmark index stood at SR4.02 billion ($1.07 billion), with 61 listed stocks advancing and 191 declining.
The Kingdom’s parallel market Nomu also declined by 144.88 points, or 0.62 percent, to close at 23,226.94.
The MSCI Tadawul Index advanced by 0.11 percent to 1,371.06.
The best-performing stock on the main market was Saudi Industrial Development Co., with its share price rising 6.32 percent to SR12.44.
Al Yamamah Steel Industries Co.’s share price increased by 6.06 percent to SR35.
Cherry Trading Co. also saw its stock climb 5.27 percent to SR26.16.
Conversely, the share price of the National Shipping Co. of Saudi Arabia, also known as Bahri, edged down 5.87 percent to SR26.64.
On the announcements front, SAL Saudi Logistics Services Co. said it intends to issue a riyal-denominated sukuk through a private placement, both inside and outside the Kingdom.
In a Tadawul statement, the company said the amount and terms of the sukuk offering will be determined at a later stage, based on prevailing market conditions.
SAL added that the proceeds will be used for general corporate purposes, capital expenditure plans to support future expansions and projects, and to achieve long-term financial and strategic objectives.
The company has appointed J.P. Morgan Saudi Arabia and SNB Capital as joint lead managers and bookrunners for the sukuk offering.
SAL’s share price declined by 0.63 percent to SR158.90.
In another announcement, Almarai Co. said the diesel price increase from January is expected to result in additional direct costs of approximately SR70 million for the company this year.
The firm added it will continue to focus on business efficiency, cost optimization, and other initiatives to mitigate the impact of the diesel price increase.
Almarai’s share price fell 3.50 percent to SR41.90.
