Zelensky denies Ukrainian troops encircled in Russia's Kursk region

In this photo taken from video distributed by Russian Defense Ministry Press Service on Saturday, March 15, 2025, a Russian "Grad" self-propelled multiple rocket launcher fires towards Ukrainian positions near Chasiv Yar, Donetsk region, Ukraine. (Russian Defense Ministry Press Service via AP)
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Updated 15 March 2025
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Zelensky denies Ukrainian troops encircled in Russia's Kursk region

  • Zelenskiy says Kursk operation ongoing, Ukrainian troops not encircled

KYIV: Ukrainian leader Volodymyr Zelensky denied Saturday any “encirclement” of his troops by Moscow’s forces in Russia’s Kursk region, a day after US President Donald Trump made the claim.
“There is no encirclement of our troops,” Zelensky said on social media, adding: “Our troops continue to hold back Russian and North Korean groupings in the Kursk region.”

Ukraine said Saturday it had downed 130 Russian-launched drones across the country at night, as international efforts to end the three-year war intensify.
Kyiv’s air force said the Iranian-made Shahed drones were downed over 14 regions and that Moscow had also attacked with two ballistic missiles.


Al-Hilal’s Jorge Jesus plays down foreign player advantage ahead of AFC Champions League semifinal against Al-Ahli

Updated 2 min 54 sec ago
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Al-Hilal’s Jorge Jesus plays down foreign player advantage ahead of AFC Champions League semifinal against Al-Ahli

  • Jesus, who has won five titles during his time at the Riyadh giants, said that both teams are familiar with each other’s strengths and the scale of the occasion

JEDDAH: Al-Hilal manager Jorge Jesus says that Al-Ahli’s larger contingent of foreign players will not be a decisive factor when the two sides meet in the AFC Elite Champions League semifinal in Jeddah on Tuesday.

Speaking at the pre-match press conference at Al-Inmaa Stadium, Jesus said: “Each team makes its own choices. Al-Ahli may have more foreign players, but having one more or one less doesn’t tip the balance.”

Jesus, who has won five titles during his time at the Riyadh giants, said that both teams are familiar with each other’s strengths and the scale of the occasion.

“We are aware of the size and intensity of this match. It’s a big continental game between two great clubs,” he said.

The Portuguese coach also praised the growing strength of Saudi Arabian football, pointing to the fact that three Saudi clubs have reached the semifinal stage.

“Having three Saudi teams in the semifinals proves the strength of Saudi football and the competitiveness of its clubs,” Jesus said.

On the other side, Al-Ahli coach Matthias Jaissle described the showdown as a “summit between two major teams” and said his players were relishing the challenge.

“It will be a tough game, and we are preparing ourselves well. Playing at home and with our fans gives us a real opportunity,” Jaissle said.

While acknowledging that Al-Hilal benefited from an extra day of rest in the run-up to the match, Jaissle was confident in Al-Ahli’s squad depth.

“We have 12 foreign players, but I don’t separate them from the Saudis. We have a strong group overall, and what matters is the performance,” he said.

Reflecting on Al-Ahli’s run to the last four, Jaissle added: “Our previous results in Asia show that we can reach the final. We trust ourselves.”


Saudi debt capital market nears $500bn mark amid global uncertainty

Updated 15 min 20 sec ago
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Saudi debt capital market nears $500bn mark amid global uncertainty

  • Kingdom’s sukuk dominance and Vision 2030 progress fuel 16 percent annual growth, Fitch Ratings reports

RIYADH: Saudi Arabia’s debt capital market continued its upward trajectory in the first quarter of 2025, defying global challenges and uncertainties.

The market reached $465.8 billion by the end of March, marking a 16 percent year-on-year increase, with sukuk accounting for 60.4 percent of the total, according to Fitch Ratings.

The Kingdom’s debt market is poised to surpass $500 billion in outstanding value by the end of 2025, driven by strong economic fundamentals, diversified funding strategies, and continued progress under Vision 2030.

Fitch Ratings, in its latest report, noted that the sector’s further expansion this year will be supported by increased fiscal deficits, heightened project financing needs, and regulatory initiatives aimed at boosting non-oil economic growth.

“Saudi entities were the largest US dollar debt issuers among emerging markets (excluding China) in the first quarter of 2025. The country also led global dollar sukuk issuance and was the largest debt capital market issuer in the GCC,” said Bashar Al-Natoor, global head of Islamic finance at Fitch Ratings.

He added: “We expect lower oil prices and increasing deficits will drive issuance in 2025 and 2026. Banks, corporates and projects are likely to seek more diverse funding through the DCM, enhancing market development. We rate about 80 percent of the outstanding US dollar Saudi sukuk market, with almost all investment-grade and no defaults.”

Issuance in the first quarter of 2025 surged by 202.4 percent compared to the previous quarter, reaching $37.3 billion. Environmental, social, and governance debt made up 9 percent of dollar-denominated DCM issuance during the period.

The expansion of Saudi Arabia’s asset management industry, whose assets under management have now exceeded SR1 trillion, is also playing a key role in supporting the growth of the Kingdom’s debt capital market.

Saudi momentum

In an interview with Arab News on the sidelines of the Fitch on Saudi Arabia event held in Riyadh, Al-Natoor lauded the Kingdom debt market for weathering global economic challenges.

“I think that by itself is something that’s very notable, because there is a lot of turbulence and there is a lot of uncertainties, and despite that, we’ve still seen the market growing,” Al-Natoor said, adding that he expected to see continued growth.

He went on to say that a range of bodies — including government, corporates, financial institutions and banks — are involved with developing the debt capital market, then funding the maturities that are coming.

“All of these are drivers, and key drivers for further growth, growth of the debt capital market,” he said.

Al-Natoor noted that several factors, including the need to diversify funding sources and the ambitious project underway in the Kingdom, are acting as key drivers of growth for Saudi Arabia’s debt capital market from the issuer side.

On investor appetite, he said: “We’re having a vibrant market in the first quarter where it shows that local investor, regional investor and international investor, of course, at varying degrees, are still interested in the market, so there is an investor appetite in that.”

He cautioned, however, that the Saudi market is not insulated from global volatility.

“Of course the appetite of the investors, maybe some uncertainties, will have a toll on the market itself. However, the actual fundamentals of the market growth are still intact, and the market is still expected to grow in the future,” Al-Natoor said.

According to Fitch, the Kingdom’s budget deficit is forecasted to widen to 5.1 percent of gross domestic product in 2025, up from 2.8 percent in 2024, with oil prices expected to average $65 per barrel.

Government debt is projected to rise to nearly 37 percent of GDP by the end of 2026, from 29.9 percent in 2024.

Foreign investor participation in government local issuances increased to 7.7 percent at the end of the first quarter, compared to 4.5 percent at the end of 2024.

About 94.2 percent of rated Saudi sukuk remain within the “A” category, with almost all issuers maintaining stable outlooks.

Looking ahead, Al-Natoor said: “We don’t have specific numbers, but we do expect that the growth momentum to continue in 2025 and 2026 maybe step further.”

He added that changes to “global scenery” could have an impact on appetite and liquidity in this area, which may lead to a “toll on the growth” of debt capital markets that lasts into next year.

Al-Natoor noted that government entities and banks are currently the primary drivers of debt issuance in Saudi Arabia.

While major corporations such as Aramco and the Public Investment Fund have also begun tapping into the debt capital market, their participation has not significantly shifted the overall market structure.

He suggested that although more corporate issuers may gradually enter the market, the dominant role of government and banks in issuance activity is expected to remain unchanged in the short to medium term.

“The actual strategy of diversifying funding is to take it down the chain from the government to banks to corporates to projects to infrastructure and so the actual long-term ambition is to involve more of these,” he said.

Al-Natoor continued: “However, over the short to medium term, we do expect that the government and the banks will play a big role.”

He added that it will take time until “the momentum goes down the chain.”

Economic resilience

In a separate interview with Arab News, Paul Gamble, head of Middle East and Africa Sovereigns at Fitch Ratings, highlighted that Saudi Arabia’s non-oil economy showed resilience despite global uncertainty.

“If you look at the experience of 2024, we saw pretty good non-oil growth at a time of really heightened geopolitical tensions in the region,” Gamble said.

Regarding Saudi Arabia’s Vision 2030 economic transformation, Gamble stressed the importance of separating reform-driven non-oil GDP expansion from government spending-driven growth.

“You have to balance the domestic reform angle — labor market reforms, social reforms, business environment reforms — against the element of non-oil growth that’s driven by government spending and GRE (government-related entities) spending,” he said.

Gamble cautioned that if oil prices remain low and government capital spending is cut significantly, it could impact private sector confidence.

He noted: “For the moment, we’re still looking for pretty healthy non-oil growth. Our forecast is 4.2 percent for non-oil growth this year for Saudi Arabia.”

Discussing fiscal pressures, Gamble said: “We’ve revised down our oil price forecast to $65 a barrel, which widened our budget deficit forecast for Saudi Arabia to 5.1 percent of GDP. That will continue to put debt on an upward trend.”

He added: “Oil prices were broadly unaffected, and metrics like tourism inflows and private sector confidence remained strong.”

In the wider Gulf region, Gamble said: “From a rating perspective, four GCC sovereigns have stable outlooks. Bahrain and Oman are exceptions.”

He explained that Bahrain faces significant fiscal challenges at current oil prices, while Oman benefits from past deleveraging efforts and non-oil economic development, supporting its positive outlook.


Saudi-Italian Business Forum showcases robust trade relations

Updated 16 min 50 sec ago
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Saudi-Italian Business Forum showcases robust trade relations

  • Event highlights opportunities in Kingdom, success stories of Italian companies

MILAN: The Saudi-Italian Business Forum, which was held on Monday in Lombardy, showcased the robust economic relationship between Italy and Saudi Arabia.

Spearheaded by prominent figures such as Veronica Squinzi, vice president for internationalization at Assolombarda, and Waleed Al-Orainan, secretary-general of the Federation of Saudi Chambers, the forum aimed to enhance collaboration and explore new business opportunities between the two nations.

Squinzi welcomed the forum and spoke of the significance of the gathering in strengthening economic ties, underscoring the importance of governmental support in fostering international business.

She said: “This forum represents a vital step in enhancing our economic collaboration and building lasting partnerships.”

Al-Orainan stressed the historic relationship between the two nations, dating back to the 1930s.

He said: “The warm reception we receive in Italy reflects the mutual respect and eagerness to enhance our bilateral cooperation.”

Kamel Al-Munajjed, chairman of the Saudi-Italian Business Council, expressed optimism regarding future collaboration.

He said: “We are at a pivotal moment where collaboration can unlock significant value chains, invigorating our economies.”

He acknowledged previous visits of Italian officials to Saudi Arabia which had helped to lay a solid foundation for partnerships.

Discussions at the forum revealed a landscape rich with business potential. Maria Tripodi, undersecretary of state for foreign affairs, noted that Saudi Arabia had emerged as a priority partner for Italy, with exports exceeding €6 billion in 2024 — an increase of 27.9 percent from the previous year.

Tripodi said: “Our relationship with Saudi Arabia is not only growing, it is thriving, and we are excited about the opportunities that lie ahead.”

This growth positions Saudi Arabia as the second-largest market for Italian exports in the region, reflecting a burgeoning relationship across sectors such as energy, infrastructure, and high-tech innovation.

The forum also highlighted opportunities in Saudi Arabia and success stories of Italian companies in sectors such as infrastructure and construction, renewable energy, and sport.

Barbara Cimmino, vice president for export and foreign investment at Confindustria, said: “When we align our strengths, we create a synergy that benefits both nations.”

Discussions at the event turned to the Vision 2030 initiative, which aims to diversify the Saudi economy and reduce its dependence on oil.

Tripodi said: “This strategic plan presents numerous opportunities for Italian enterprises, particularly in technology, education, and public services.”


Pakistan stocks slide on surging tensions with neighboring India

Updated 19 min 14 sec ago
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Pakistan stocks slide on surging tensions with neighboring India

  • The stock market shed 1,405.44 points, or 1.22 percent, to close at 115,469.34 points
  • The below-expectation corporate results also disappointed investors, an analyst says

ISLAMABAD: The Pakistan Stock Exchange plunged and lost more than 1,400 points in intraday trading, traders and analysts said on Monday, as rising tensions with India triggered geopolitical jitters and fueled a wave of investor selling at the market.

The benchmark KSE-100 index shed 1,405.44 points, or 1.22 percent, to close at 115,469.34 points after touching an intraday high of 116,658.94 points on Monday, according to stock traders.

The development came amid heightened tensions between Pakistan and India over the killing of 26 tourists in Indian-administered Kashmir on April 22. New Delhi has blamed the attack on Pakistan, Islamabad denies any complicity.

"The prevailing negative sentiment was largely driven by escalating tensions between India and Pakistan, which heightened investor concerns and weighed heavily on overall market confidence," Karachi-based Topline Securities brokerage firm said.

It said companies like SYS, LUCK, MEBL and HBL contributed 489 points to the index, while ENGRO, UBL, MARI, EFERT and PSO shaved off 907 points from the benchmark.

"Despite the risk-averse sentiment, overall participation remained firm with volumes clocking in at 421 million shares and a turnover of Rs26.43 billion," the firm said in its review.

The market saw an overall trade of 533 million shares, valued at Rs33.7 billion.

Muhammad Rizwan, a director at Chase Securities, said below-expectation corporate results also disappointed investors.

"NRL, PAEL and Engro Holding disappointed investors, impacting stocks in a range of 5.4 percent to 9.7 percent," Rizwan said.

 


First six Hajj flights from Pakistan depart for Saudi Arabia tomorrow

Updated 44 min 23 sec ago
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First six Hajj flights from Pakistan depart for Saudi Arabia tomorrow

  • 114,000 Pakistanis are expected to perform Hajj pilgrimage in 2025
  • Record-breaking 2.5 million Muslims expected to perform Hajj this year

ISLAMABAD: Pakistan’s 33-day-long Hajj flights operation will be launched tomorrow, Tuesday, with six flights set to depart for Saudi Arabia, state media reported on Monday.

This year’s annual pilgrimage will take place in June, with nearly 89,000 Pakistanis expected to travel to Saudi Arabia under the government scheme and 23,620 Pakistanis performing Hajj through private tour operators.

“The Hajj flight operation to airlift intending pilgrims to Saudi Arabia is commencing from tomorrow [Tuesday],” Radio Pakistan said in its report.

“On the first day of the Hajj flight operation, six flights will be operated: two from Lahore and one each from Islamabad, Karachi, Quetta and Multan.”

Around 89,000 pilgrims traveling under the government scheme will travel to Makkah and Madinah through 342 flights. The last Hajj flight will depart on May 31.

Around 50,500 Pakistani pilgrims will travel to Saudi Arabia under Saudi Arabia’s Makkah Route Initiative, which aims to streamline the immigration process for pilgrims to Makkah. The initiative was launched in 2019 by the Saudi Ministry of Hajj and Umrah and has been implemented in five countries: Pakistan, Malaysia, Indonesia, Morocco, and Bangladesh.

Under the initiative, pilgrims are able to complete their immigration requirements at their home country’s airports before they depart for Saudi Arabia. This saves pilgrims several hours upon arrival in the Kingdom, as they can simply enter the country without having to go through immigration again. 

Under the Makkah Route Initiative, 28,000 pilgrims will depart for the Kingdom from Islamabad while the remaining 22,500 will fly from the southern port city of Karachi.

While a precise number of worldwide pilgrims for Hajj 2025 is difficult to determine in advance, projections suggest it will be a record-breaking year, with over 2.5 million Muslims performing the pilgrimage.