JEDDAH: Most major stock markets in the Middle East rose, including Dubai which continued to climb even as construction firm Arabtec, its most heavily traded stock, was suspended.
Companies in Saudi Arabia were the first to start reporting quarterly earnings and dividends this month.
Saudi Arabia’s main index slipped 0.3 percent on Thursday after a series of negative announcements.
Bank Al Jazira was the main drag on the index, dropping 4.3 percent after its quarterly profit of SR166.7 million ($44.5 million) missed analysts’ average estimate of SR191.0 million.
Saudi Kayan Petrochemical Company also dragged down the benchmark, sliding 2.6 percent after it reported a quarterly loss of SR133.1 million, whereas analysts had forecast a profit.
Retailer Jarir Marketing slipped 0.5 percent after it proposed cutting its cash dividend for the second quarter to SR1.20 per share from SR1.70 a year ago despite a modestly higher profit.
Food producer Savola Group, on the other hand, jumped 4.5 percent following a higher than expected 32.4 percent increase in second-quarter net profit.
Dubai’s market pulled back as much as 1.0 percent in early trade as market players found themselves unable to trade Arabtec shares. But it then recovered quickly and closed up 0.9 percent as attention shifted to other stocks.
The bourse, citing instructions from the UAE’s Securities and Commodities Authority, said it had suspended Arabtec pending clarification of media reports about strategic partners’ stake in the firm.
The suspension appeared to indicate that regulators are now taking a more active approach to volatility in Arabtec shares and disclosure of information about the company, after wild swings in the stock over the past two months destabilized the entire stock market.
“I think the regulator now is very conscious of what’s happening around the name and they want to make sure that the movement of the stock is not based on rumors,” said Ali Adou, portfolio manager at The National Investor in Abu Dhabi. “I think it’s a very good step.”
Saudi stocks slip; Bank Al Jazira drops 4.3 percent
Saudi stocks slip; Bank Al Jazira drops 4.3 percent
Industry leaders highlight Riyadh’s Metro, infrastructure as investment catalysts
RIYADH: Saudi Arabia’s capital, Riyadh, is experiencing a transformative phase in its real estate sector, with the construction market projected to reach approximately $100 billion in 2025, accompanied by an anticipated annual growth rate of 5.4 percent through 2029.
The Kingdom is simultaneously advancing its data center capacity at an accelerated pace, with an impressive 2.7 GW currently in the pipeline. This expansion underscores the critical role of strategic land and power planning in establishing national infrastructure as a cornerstone of economic growth.
These insights were shared by leading industry experts during JLL’s recent client event in Riyadh, which focused on the city’s macroeconomic landscape and emerging trends across office, residential, retail, hospitality, and pioneering sectors, including AI infrastructure and Transit-Oriented Development.
Saud Al-Sulaimani, Country Lead and Head of Capital Markets at JLL Saudi Arabia, commented: “Riyadh is positioned at the forefront of Saudi Arabia’s Vision 2030, offering unparalleled opportunities for both investors and developers. National priorities are continuously recalibrated to ensure strategic alignment of projects and foster deeper collaboration with the private sector.”
He added: “Recent regulatory developments, including the introduction of the White Land Tax and the rent freeze, are designed to stabilize the market and are expected to drive renewed focus on delivering premium-quality assets. This dynamic environment, coupled with evolving construction cost considerations in select segments, is fundamentally reshaping the market landscape while accelerating progress toward our national objectives.”
The event further underscored the transformative impact of infrastructure initiatives. Mireille Azzam Vidjen, Head of Consulting for the Middle East and Africa at JLL, highlighted Riyadh’s transit revolution. She detailed the Riyadh Metro, a $22.5 billion investment encompassing 176 kilometers, six lines, and 84 stations, providing extensive geographic coverage, with a depth of 9.8 km per 100 sq. km. This strategic development generates significant TOD opportunities, with properties in proximity potentially commanding a 20-30 percent premium. JLL emphasized the importance of implementing climate-responsive last-mile solutions to enhance mobility and accessibility, particularly given Riyadh’s extreme temperatures.
Gaurav Mathur, Head of Data Centers at JLL, emphasized the rapid expansion of the Kingdom’s AI infrastructure, signaling a critical area for technological investment and innovation.
Focusing on the construction sector, Maroun Deeb, Head of Projects and Development Services, KSA at JLL, explained that the industry is actively navigating complexities such as skilled labor availability, material costs, and supply chain dynamics.
He highlighted the adoption of Building Information Modeling as a key driver for enhancing operational efficiency and project delivery.
