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Bahrain’s economy grows 1.3% in Q2, ministry report reveals

Bahrain’s economy grows 1.3% in Q2, ministry report reveals
Bahrain has introduced reforms to facilitate doing business, create more jobs, and attract foreign investment to boost economic growth. Shutterstock
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Updated 08 October 2024

Bahrain’s economy grows 1.3% in Q2, ministry report reveals

Bahrain’s economy grows 1.3% in Q2, ministry report reveals
  • Overall GDP was affected by a 6.7% decline in the oil sector’s GDP compared to the same period last year
  • Real GDP growth is projected to accelerate to 3.8% in 2025

RIYADH: Growth in Bahrain’s non-oil sectors boosted its economy by 1.3 percent year-on-year, reaching 3.7 billion dinars ($9.8 billion) in the second quarter of this year, according to newly released figures.

Issued by the country’s Ministry of Finance and National Economy, citing preliminary data from the Information and eGovernment Authority, the newly released report shows that non-oil gross domestic product grew by 2.8 percent during the period and contributed more than 85 percent to the overall GDP. 

The analysis further indicated that the Gulf country’s overall GDP was affected by a 6.7 percent decline in the oil sector’s GDP compared to the same period last year.

The rise reflects Bahrain’s diversification efforts, aligning with the country’s Economic Vision 2030, a comprehensive development plan to transform the economy.

Being one of the most indebted economies and a small oil producer in the region, Bahrain has introduced reforms to facilitate doing business, create more jobs, and attract foreign investment to boost economic growth.

The Ministry of Finance expects Bahrain’s economy to grow by 3 percent in 2024, driven mainly by non-oil sectors as the government accelerates efforts to diversify sources of income and economic sectors away from hydrocarbons. 

The growth will be driven primarily by a diverse range of non-oil activities, which is forecasted to expand by 3.8 percent during this year.

Looking ahead to 2025, real GDP growth is projected to accelerate to 3.8 percent. The non-oil activities are anticipated to experience an even stronger expansion of 4.5 percent during 2025, as expected progress around the Bapco Modernization Program will be fully seen.

The program’s objective is to increase refining capacity and improve energy efficiency, with a vision of becoming one of the most competitive and environmentally compliant oil refineries regionally, providing a solid foundation for realizing the country’s Vision 2030. 

Bahrain’s real GDP grew by 3.3 percent year on year in the first quarter of 2024, according to a government report released at the time. 

National accounts estimates issued by the Information and eGovernment Authority at the time showed that the Gulf state’s non-oil GDP rose by 3.3 percent during that period, contributing about 85.9 percent of GDP.  

The report added that oil GDP grew 3.4 percent, with accommodation and food services, financial activities, and insurance among the best-performing sectors.

The economies of the Gulf Cooperation Council countries have demonstrated positive performance in non-oil activities during the year despite the global challenges, while oil activities declined due to supply cuts implemented by OPEC+. However, factors such as interest rate cuts and the gradual increase in oil production are expected to persist in GCC countries.


Oil Updates — crude rises more than 1% as investors assess Iran-Israel ceasefire, demand outlook

Oil Updates — crude rises more than 1% as investors assess Iran-Israel ceasefire, demand outlook
Updated 25 June 2025

Oil Updates — crude rises more than 1% as investors assess Iran-Israel ceasefire, demand outlook

Oil Updates — crude rises more than 1% as investors assess Iran-Israel ceasefire, demand outlook
  • Report says US strikes failed to destroy Iran’s nuclear sites
  • Prices settled at multi-week lows in previous session

LONDON: Oil prices climbed more than 1 percent on Wednesday as investors assessed the stability of a ceasefire between Iran and Israel, while support also came from data that showed US demand was relatively strong.

Brent crude futures were up 99 cents, or 1.5 percent, at $68.13 a barrel at 12:02 p.m. Saudi time, while US West Texas Intermediate crude gained 94 cents, or 1.5 percent, to $65.31.

Brent settled on Tuesday at its lowest since June 10 and WTI since June 5, both before Israel launched a surprise attack on key Iranian military and nuclear facilities on June 13.

Prices had rallied to five-month highs after the US attacked Iran’s nuclear facilities over the weekend.

“Concerns about oil supply disruptions have declined,” said Giovanni Staunovo, commodity analyst at UBS. “The drawdown shows that demand is still holding up in the US, the trade tensions were not as bad as some were fearing.”

Industry data showed US crude inventories fell by 4.23 million barrels in the week ended June 20, market sources said, citing American Petroleum Institute figures on Tuesday.

Traders and analysts are also seeing some support from market expectations that interest rate cuts could happen soon in the US Lower interest rates typically spur economic growth and demand for oil.

“Fed Chair Powell’s first testimony to Congress (yesterday) has hinted at a slight chance of bringing forward the first rate cut of 2025 to July ... which should offer some form of floor on oil prices from the demand side,” said OANDA senior market analyst Kelvin Wong.

A slew of US macroeconomic data released overnight including on consumer confidence showed possibly weaker than expected economic growth in the world’s largest oil consumer, bolstering expectations of Federal Reserve rate cuts this year.

Futures point to nearly 60 basis points’ worth of easing by December.

On the geopolitical front, a preliminary US intelligence assessment said US airstrikes did not destroy Iran’s nuclear capability and only set it back by a few months, as a shaky ceasefire brokered by US President Donald Trump took hold between Iran and Israel.

Earlier on Tuesday, both Iran and Israel signalled that the air war between the two nations had ended, at least for now, after Trump publicly scolded them for violating a ceasefire.

As the two countries lifted civilian restrictions after 12 days of war — which the US joined with an attack on Iran’s uranium-enrichment facilities — each sought to claim victory.

“While concerns regarding Middle Eastern supply have diminished for now, they have not entirely disappeared, and there remains a stronger demand for immediate supply,” said ING analysts in a client note.

Oil prices will likely consolidate at around $65-$70 per barrel levels as traders look to more US macroeconomic data this week and the Fed’s rate decision, said independent market analyst Tina Teng.

Investors were also awaiting US government data on domestic crude and fuel stockpiles due on Wednesday.


Major Gulf markets gain on easing regional conflict

Major Gulf markets gain on easing regional conflict
Updated 25 June 2025

Major Gulf markets gain on easing regional conflict

Major Gulf markets gain on easing regional conflict
  • ֱ’s benchmark index added 0.2%
  • Dubai’s main share index gained 0.4%

LONDON: Major stock markets in the Gulf rose in early trade on Wednesday, on course to extend gains from the previous session when they registered sharp gains following a ceasefire between Israel and Iran.
The ceasefire brokered by US President Donald Trump appeared to be holding on Wednesday, a day after both countries signalled that their air conflict had ended, at least for now.
ֱ’s benchmark index added 0.2 percent, helped by a 1 percent rise for Saudi National Bank, the country’s biggest lender by assets.
Elsewhere, Specialized Medical Company opened 0.2 percent lower in debut trade.
Oil prices climbed as investors assessed the stability of a ceasefire, while support also came from market expectations that US interest rate cuts could happen soon.
The Fed’s decision affects monetary policy in the Gulf, where most currencies, including the Saudi riyal, are pegged to the US dollar.
Dubai’s main share index gained 0.4 percent, with top lender Emirates NBD rising 2 percent.
In Abu Dhabi, the index was up 0.1 percent.
The Qatari index increased 0.3 percent, with the Gulf’s biggest lender Qatar National Bank gaining 0.9 percent.
Qatar reopened its airspace after a brief suspension, its civil aviation authority said early on Tuesday, following a missile attack by Iran on an American air base in Qatar on Monday that caused no injuries.


ֱ raises $628m in June sukuk offering

ֱ raises $628m in June sukuk offering
Updated 24 June 2025

ֱ raises $628m in June sukuk offering

ֱ raises $628m in June sukuk offering

JEDDAH: ֱ’s National Debt Management Center has completed its June issuance under the government’s riyal-denominated sukuk program, raising SR2.355 billion ($628 million).

The figure marks a decline of 42 percent from May’s SR4.08 billion, which was the highest monthly total recorded this year. The drop reflects typical fluctuations in the government’s monthly funding activity.

The June offering was divided into five tranches. The first amounted to SR25 million and will mature in 2027. The second, totaling SR1.175 billion, will mature in 2029. The third tranche stood at SR500 million and is set to mature in 2032. The fourth was SR5 million, maturing in 2036, while the fifth and final tranche reached SR650 million, due in 2039.

Sukuk, which are structured to comply with Islamic finance principles, offer investors returns generated from tangible assets or projects, rather than traditional interest payments. These instruments continue to attract strong demand from investors seeking stable, Shariah-compliant returns.

Despite the month-on-month decline, the latest issuance underscores ֱ’s efforts to diversify its funding base and develop the domestic debt market.

The NDMC has maintained a steady pace of monthly issuances this year, including SR3.72 billion in January, SR3.07 billion in February, SR2.64 billion in March, and SR4.08 billion in May.

ֱ continues to lead the Gulf Cooperation Council in sukuk and bond activity. In the first quarter of 2025, the Kingdom accounted for more than 60 percent of all primary debt issuances in the region, raising $31.01 billion from 41 offerings, according to the Kuwait Financial Center, known as Markaz.

In a broader outlook, S&P Global has highlighted ֱ’s expanding non-oil economy and strong sukuk activity as key drivers for growth in global Islamic finance.

The agency forecasts total sukuk issuance could reach between $190 billion and $200 billion in 2025, with up to $80 billion in foreign-currency issuances, assuming stable market conditions.

Looking ahead, Kamco Invest projects that ֱ will lead the GCC in bond maturities over the next five years. Between 2025 and 2029, about $168 billion in Saudi bonds are expected to mature, underscoring the Kingdom’s prominent role in the region’s debt landscape.


Closing Bell: TASI rises 2.37% to close at 10,964 

Closing Bell: TASI rises 2.37% to close at 10,964 
Updated 24 June 2025

Closing Bell: TASI rises 2.37% to close at 10,964 

Closing Bell: TASI rises 2.37% to close at 10,964 

RIYADH: ֱ’s Tadawul All Share Index rose 254.04 points, or 2.37 percent, to close at 10,964.28 on Tuesday. 

Total trading turnover reached SR8.48 billion ($2.26 billion), with 248 stocks posting gains and five declining. 

The Kingdom’s parallel market Nomu also recorded an increase, gaining 492.72 points, or 1.87 percent, to settle at 26,850.79, as 73 stocks advanced and 22 retreated.

The MSCI Tadawul 30 Index, meanwhile, gained 29.06 points, or 2.11 percent, to finish at 1,406.69. 

Red Sea International Co. was the best-performing stock of the session, with its share price rising 9.97 percent to SR42.45. Salama Cooperative Insurance Co. followed with a 9.92 percent increase to SR13.52. 

Other gainers included Saudi Cable Co., which rose to a fresh year high on Tuesday, closing at SR147.20 with a 6.05 percent increase. 

On the losing side, SABIC Agri-Nutrients Co. saw the steepest decline, falling 4.58 percent to SR104.2. ֱn Oil Co. dropped 1.62 percent to SR24.34, and Taleem REIT Fund declined 0.85 percent to SR9.30. 

Dar Al Arkan Real Estate Development Co. announced its intention to issue a dollar-denominated, fixed-rate, Shariah-compliant sukuk under Regulation S, as it seeks to broaden its funding base and support general corporate purposes. 

The Riyadh-based property developer has appointed a consortium of regional and international banks to act as joint lead managers and bookrunners for the issuance. 

These include Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, and Alkhair Capital, as well as Al Rayan Investment and Arqaam Capital. Other participants are Bank ABC, Dubai Islamic Bank, Emirates NBD Capital, and First Abu Dhabi Bank.

The list also features J.P. Morgan, Mashreq, and Sharjah Islamic Bank, as well as Standard Chartered Bank, and Warba Bank. 

The appointed banks will arrange a series of fixed income investor calls starting June 24, ahead of the planned sukuk offering in global capital markets. 

The transaction remains subject to market conditions and regulatory approvals, including compliance with Financial Conduct Authority and International Capital Market Association stabilization rules. 

The offering is classified as a benchmark senior unsecured sukuk under Regulation S, which allows for international placement with institutional investors. The value of the sukuk will be determined based on market conditions at the time of issuance. 

According to the company’s statement on Tadawul, the proceeds from the issuance will be used for general corporate purposes. The board of directors approved the sukuk issuance on May 29. 

Dar Al Arkan’s share price closed the session 2.70 percent higher to reach SR19. 


Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report

Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
Updated 24 June 2025

Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report

Oman’s sovereign fund nets $4.1bn profit with disciplined, future-focused strategy: Report
  • OIA ranked 35th globally by assets under management among sovereign wealth funds
  • Around 61.3% of its portfolio is invested locally

RIYADH: Oman’s sovereign wealth fund posted a record profit of 1.59 billion Omani rials ($4.1 billion) in 2024 and grew its assets above 20 billion rials, Global SWF reported.

The additional revenue enabled the Oman Investment Authority to transfer 800 million rials into the national budget, according to the report, providing a vital fiscal cushion and underscoring the fund’s expanding dual role as both an economic engine and a diplomatic asset.

Beyond headline profits, OIA is executing a strategic shift, prioritizing domestic investments to generate local value while forming global partnerships to secure future-ready capabilities in areas such as artificial intelligence, clean energy, logistics, and manufacturing.

Ranked 35th globally by assets under management among sovereign wealth funds, the OIA is increasingly being viewed as a nimble but ambitious player.

According to Global SWF, its disciplined portfolio strategy, increased transparency, and joint fund architecture are transforming the fund into a networked sovereign investor with a growing international footprint.

At home, OIA’s economic impact is significant. Around 61.3 percent of its portfolio is invested locally, mainly through its National Development Fund, which exceeded its 2024 target by deploying 2.1 billion riyals in strategic projects, according to Global SWF.

These include infrastructure ventures such as the Duqm Refinery, new mining operations in Lasil and Al Baydha, and solar energy plants in Manah.

Over the past year, the fund has inked a $300 million joint investment platform with Algeria and expanded its Vietnam-Oman Investment Fund. 

These investments signal a shift in Gulf sovereign wealth funds— from passive holdings to active, technology-driven deal-making aligned with national objectives.

In parallel, OIA has launched the Future Fund Oman with an allocation of $5.2 billion, targeting large-scale domestic projects, small and medium-sized enterprises, and startups, according to a separate May report by Global SWF.

In its first year, the fund approved over $2 billion in deals, with 75 percent of capital coming from foreign investors, underlining investor confidence in Oman’s diversification agenda.

Investing for Vision 2040

OIA’s 2024 performance also reflected its focus on human capital and job creation, with nearly 1,400 new roles generated and the Omanization rate across OIA-linked entities reaching 77.7 percent.

Through programs like Jadarah, Nomou, and Eidaad, the fund is aligning education, training, and employment with Vision 2040’s long-term growth objectives.

Meanwhile, the fund is moving from asset accumulation toward strategic exits. Since 2022, it has divested 19 assets, including three major IPOs: Abraj Energy Services, OQ Gas Networks, and Pearl REIF— raising over $2.5 billion, according to the release.

The October listing of 25 percent of OQ Exploration & Production marked Oman’s largest-ever IPO, signaling deepening liquidity in Muscat’s capital markets, according to the Global SWF May report.

OIA’s roadmap includes 30 more divestments through 2029 across sectors, including logistics, utilities, and aquaculture, aiming to crowd in private capital and raise governance standards. These IPOs are structural tools to deepen Oman’s market while supporting the transition to a knowledge-based economy.

Global investment, local value

Even as it expands abroad, OIA insists every foreign investment must deliver back home— whether in skills, supply chain resilience, or technology transfer. Recent deals illustrate this ethos.

In the US, OIA invested in Tidal Vision, a company developing climate-smart biopolymers. In Singapore, it joined a $100 million venture capital fund with Golden Gate Ventures and helped establish a Muscat-based venture office to incubate deep-tech startups.

In one of its most high-profile moves, OIA took a stake in Elon Musk’s xAI, joining fellow Gulf players like Saudi’s Kingdom Holding and Qatar Investment Authority.

The move links Omani capital to frontier technology while reinforcing the fund’s mandate to back high-potential sectors shaping the global economy.

The OIA’s operational discipline has not gone unnoticed. Since 2021, it has reduced its subsidiary debt by nearly $5.6 billion, standing at $23.92 billion as of the end of the third quarter of 2024. It also refused to issue any new government guarantees last year, according to Global SWF, boosting investor confidence. Ratings agency S&P cited OIA’s reforms and transparency in reaffirming Oman’s BBB- rating with a positive outlook.