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Oil Updates — crude heads for weekly gain but remains under supply hike pressure

Update Oil Updates — crude heads for weekly gain but remains under supply hike pressure
Brent crude futures were up 5 cents, or 0.1 percent, at $64.58 per barrel at 12:53 p.m. Saudi time. Shutterstock
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Updated 16 May 2025

Oil Updates — crude heads for weekly gain but remains under supply hike pressure

Oil Updates — crude heads for weekly gain but remains under supply hike pressure

LONDON: Oil prices were little changed on Friday, heading for a modest weekly gain as easing US-China trade tensions were somewhat offset by higher supply expectations from Iran and OPEC+.

Brent crude futures were up 5 cents, or 0.1 percent, at $64.58 per barrel at 12:53 p.m. Saudi time, while US West Texas Intermediate crude futures rose 2 cents to $61.64.

Both contracts fell more than 2 percent in the previous session on the prospect of an Iranian nuclear deal, which could result in more barrels being released onto the global market.

“The oil market is struggling to rise further, as the feel-good effect of the US-China trade detente fades,” said Harry Tchiliguirian, group head of research at Onyx Capital Group.

“OPEC+ accelerates the unwinding of its voluntary supply cuts and the US-Iran nuclear talks are still ongoing, keeping the barrels of the latter still flowing to China.”

US President Donald Trump said the US was nearing a nuclear deal with Iran, with Tehran “sort of” agreeing to its terms. However, a source familiar with the talks said there were still issues to resolve.

ING analysts wrote in a note that a nuclear deal lifting sanctions would allow Iran to increase oil output, resulting in additional supply of around 400,000 barrels per day.

Despite the potential supply pressure, both Brent and WTI are up so far this week, gaining around 1 percent.

Sentiment got a boost after the US and China, the world’s two biggest oil consumers and economies, agreed to a 90-day pause on their trade war during which both sides would sharply lower trade duties.

The hefty reciprocal Sino-US tariffs had raised fears of a sharp blow to global growth and oil demand.

Analysts at BMI, a unit of Fitch Solutions, said in a research report however that “while the 90-day cooling off period leaves the door open for additional progress on lowering trade barriers on both sides, the uncertainty on longer-term trade policy will limit price upside.”

Adding to market concerns was an expected surplus.

The International Energy Agency on Thursday hiked its 2025 global supply growth forecast by 380,000 bpd and projected a surplus for next year, despite a minor upward revision of its 2025 global oil demand forecast by 20,000 bpd.

Investors were also watching for signs of interest rate cuts by the US Federal Reserve, which could bolster the economy and oil demand.


SAMA approves ‘Visitor ID’ for bank account opening

SAMA approves ‘Visitor ID’ for bank account opening
Updated 28 September 2025

SAMA approves ‘Visitor ID’ for bank account opening

SAMA approves ‘Visitor ID’ for bank account opening

RIYADH: The Saudi Central Bank has announced a significant update to its banking regulations, now permitting the use of the “Visitor ID” as a valid document for opening bank accounts within the Kingdom.

The “Visitor ID,” an official identification document issued by the Ministry of Interior for visitors, can be authenticated via authorized digital platforms. 

The move is a strategic step under ֱ’s Vision 2030, aimed squarely at boosting the tourism sector and creating a seamless, digitally-enabled experience for the millions of tourists, business travelers, and pilgrims who visit the Kingdom annually.

“This decision will enable banks to open accounts for new consumer segments and enhance the visitor experience during their stay in the Kingdom,” SAMA said in a statement.

The statement clarified that this regulatory update stems from a periodic review process, ensuring that policies keep pace with market developments. 

The change is expected to streamline account opening procedures, advance financial inclusion, and further support the ongoing digital transformation of ֱ’s banking services.

This decision effectively bridges a major gap for visitors. Now, with a bank account tied to their Visitor ID — which is issued through the government’s “Absher” platform — they can use local mobile wallets and make digital payments with ease, reducing their reliance on cash. 


Closing Bell: Saudi main index closes in red at 11,229 

Closing Bell: Saudi main index closes in red at 11,229 
Updated 28 September 2025

Closing Bell: Saudi main index closes in red at 11,229 

Closing Bell: Saudi main index closes in red at 11,229 

RIYADH: ֱ’s Tadawul All Share Index dropped on Sunday, losing 78.57 points, or 0.69 percent, to close at 11,229.54. 

The total trading turnover of the benchmark index was SR4.89 billion ($1.30 billion), as 125 of the listed stocks advanced, while only 118 retreated. 

The MSCI Tadawul Index also decreased, down 13.01 points or 0.88 percent, to close at 1,460.29. 

The Kingdom’s parallel market Nomu lost 5.60 points, or 0.02 percent, to close at 25,455.54. This comes as 42 of the listed stocks advanced, while 44 retreated. 

The best-performing stock during today’s session was CHUBB Arabia Cooperative Insurance Co., with its share price surging by 10 percent to SR38.72. 

Other top performers included Fawaz Abdulaziz Alhokair Co., which saw its share price rise by 9.97 percent to SR28.46, and Obeikan Glass Co., which saw a 9.88 percent increase to SR32.46. 

Arabian Contracting Services Co. rose 6 percent to SR99.85, while East Pipes Integrated Co. for Industry gained 5.38 percent to SR123.40. 

On the downside, the worst performer of the day was Sustained Infrastructure Holding Co., whose share price fell by 3.35 percent to SR32.86. 

Jadwa REIT Saudi Fund fell 3.33 percent to SR10.74, while Al Rajhi Bank dropped 3.15 percent to SR101.50. 

Arriyadh Development Co. fell 2.91 percent to SR29.40, while Saudia Dairy and Foodstuff Co. declined 2.77 percent to SR274. 

On the announcements front, the board of directors of Saudi Networkers Services Co. approved the company’s move from the parallel market, known as Nomu, to the main market. 

The company said it will commence fulfilling the applicable requirements and coordinating with the relevant authorities to obtain the necessary approvals for the transfer to the main market.  

“The transfer to the main market is subject to the approval of the Saudi Capital Market Authority and conditional upon meeting all the applicable requirements. Any material developments regarding the event will be announced as they occur,” the statement added. 

The Saudi Networkers Services Co.’s shares traded 3.25 percent higher on the parallel market to close at SR74.55. 


Oman private sector lending climbs 4.6% to $55bn by July

Oman private sector lending climbs 4.6% to $55bn by July
Updated 28 September 2025

Oman private sector lending climbs 4.6% to $55bn by July

Oman private sector lending climbs 4.6% to $55bn by July

JEDDAH: Oman’s conventional commercial banks expanded credit by 8 percent year on year by the end of July 2025, official data showed. 

Private sector lending rose 4.6 percent to 21.3 billion rials ($55.4 billion), according to the Central Bank of Oman. Investments in securities fell 3.4 percent to 5.8 billion rials, with holdings of government development bonds climbing 6.3 percent to 2 billion rials, while foreign securities declined 15.7 percent to 2.1 billion rials. 

The central bank’s 2025 Financial Stability Report pointed to strong capital buffers and high-quality assets, noting that Oman’s banking sector remains profitable and well-positioned to absorb external shocks. 

“Private sector deposits increased 4.1 percent to 17 billion rials by the end of July, accounting for 66.3 percent of total deposits with conventional commercial banks,” ONA reported, citing the report’s findings. 

On the liabilities side, the recent official data noted that the total deposits with conventional commercial banks grew 3.6 percent to 25.7 billion rials by the end of July. It added that government deposits rose 7.1 percent to 5.8 billion rials, while deposits from public sector institutions fell 11 percent to 1.7 billion rials. 

Real estate trade value hits 2.12bn rials    
According to the National Centre for Statistics and Information, Oman’s total real estate transaction value reached 2.124 billion rials by the end of August, marking a 9.9 percent increase from 1.933 billion rials in the same period last year. 

Fees for legal transactions rose 81.7 percent to 79 million rials. Similarly, sale contract values grew 16.1 percent to 831 million rials, despite a slight 1 percent drop in the number of contracts to 43,971. 

Meanwhile, mortgage contract values rose 6.4 percent to 1.285 billion rials, while exchange contract values declined 17.7 percent to 7.6 million rials. Additionally, property ownership transfers rose 2.6 percent to 153,764, though transfers to GCC nationals fell 12.8 percent to 859 ownerships. 

S&P affirms Oman’s BBB- rating 

The global financial rating agency S&P has affirmed Oman’s long-term foreign and local currency sovereign credit rating at “BBB-” with a stable outlook, citing the government’s commitment to financial reforms and its ability to maintain economic stability despite oil price fluctuations. 

“The report noted that the government’s reforms — including restructuring state-owned enterprises, diversifying income sources, and establishing the Oman Future Fund — have strengthened economic resilience and attracted foreign investment,” ONA reported. 

The agency expects Oman’s real GDP growth to rise from 1.7 percent in 2024 to over 2 percent annually during 2025–2028, supported by non-oil sector expansion. 

It forecasts Brent crude prices to climb from $60 per barrel in late 2025 to $65 in 2026–2028, with public debt falling from 36 percent of GDP in 2024 to 33 percent by 2028. Inflation is expected to average 1.5 percent, government net assets to remain at 8 percent, and non-oil growth to hold at 2.9 percent annually.  

S&P also noted a small fiscal deficit of 0.5 percent of GDP in 2025, moving to a balanced budget by 2026, with an average current account deficit of 1.9 percent of GDP. 


ֱ and South Korea deepen cooperation in innovation and SMEs  

ֱ and South Korea deepen cooperation in innovation and SMEs  
Updated 28 September 2025

ֱ and South Korea deepen cooperation in innovation and SMEs  

ֱ and South Korea deepen cooperation in innovation and SMEs  

RIYADH: Saudi-Korean bilateral cooperation in innovation and enterprises is set to flourish after the two nations discussed expansion opportunities in high-potential sectors. 

A meeting between ֱ’s Investment Minister, Khalid Al-Falih, and South Korea’s Minister for SMEs and Startups, Han Seong-suk, in Seoul focused on strategically building entrepreneurial environments and orchestrating efforts to drive SME success.   

Al-Falih also participated in a roundtable with pioneering firms under the Saudi-Korean SME and Entrepreneurship Programme, where companies presented innovations and explored prospects for expanding into the Saudi market across key emerging sectors.  

“The meeting saw discussions on ecosystems for entrepreneurship and coordinating efforts to empower SMEs in high-potential sectors,” Al-Falih said in a post on X.  

This focus on SME and startup collaboration is part of a broader, rapidly expanding partnership between the two nations. The ministers’ meeting coincided with the fifth ministerial meeting of the Saudi-Korean Vision 2030 Committee, which Al-Falih led.  

The committee reviewed progress on joint initiatives, which are now set to be elevated under the oversight of the high-level Strategic Partnership Council, chaired by the Crown Prince.    

“This Strategic Partnership Council affords new vistas in artificial intelligence, smart cities, culture, and innovation, whilst advancing diversification,” Al-Falih added on his X account, inviting Korean enterprises to invest in Vision 2030 opportunities, including Expo 2030 and the 2034 World Cup. 

The growing partnership, which has seen investment licenses jump from 65 in 2016 to 213 today, is built on a foundation of strategic collaborations in diverse fields. 

Recent agreements have paved the way for this enhanced cooperation. Earlier this year, the Saudi Space Agency and the Korean Aerospace Administration signed an MoU to collaborate on deep space technologies, manned flight programs, and satellite launches. 

Furthermore, in August, the Saudi General Court of Audit and South Korea’s Board of Audit and Inspection inked a deal to strengthen cooperation in accounting and auditing practices.  

These collaborations in space, audit, and now SMEs and startups underscore a comprehensive strategic alignment. 

As Al-Falih noted, the partnership with the Republic of Korea has “advanced apace,” encompassing major strategic collaborations with giants like Samsung in advanced technologies and Hyundai in automobile manufacturing.  

The bilateral cooperation between the Kingdom and South Korea also spans the defense sector. In February, the two countries signed a government quality assurance agreement to strengthen defense cooperation and boost their military capabilities and long-term industrial development. 

The deal, signed during the International Defense Exhibition and Conference in Abu Dhabi, underscored growing ties between the two nations in defense and technology. 

Saudi Crown Prince Mohammed bin Salman’s 2019 visit to South Korea led to the signing of an MoU aimed at strengthening defense and industrial partnerships, focusing on military acquisitions, research, and technology. 

Since then, defense ties between ֱ and South Korea have grown through several agreements. 


ֱ’s FDI net inflows rise 14.5% in Q2 

ֱ’s FDI net inflows rise 14.5% in Q2 
Updated 28 September 2025

ֱ’s FDI net inflows rise 14.5% in Q2 

ֱ’s FDI net inflows rise 14.5% in Q2 

RIYADH: ֱ’s foreign direct investment net inflows climbed 14.5 percent year on year to SR22.8 billion ($6.1 billion) in the second quarter, signaling a steady appetite for the Kingdom’s reform-driven economy.  

The figure, released by the General Authority for Statistics, compared with SR19.9 billion a year earlier. 

On a quarterly basis, net inflows dipped 3.5 percent from the SR23.7 billion recorded in the first three months of 2025, underscoring lingering global headwinds that continue to weigh on cross-border capital flows. 

The increase in net inflows reflects a broader effort by ֱ to attract long-term foreign capital as part of its Vision 2030 strategy, which aims to diversify the economy beyond oil revenues.   

The Kingdom has been implementing regulatory reforms, opening up sectors such as tourism, renewable energy, and technology to international investors, and launching initiatives through the Ministry of Investment to position ֱ as a regional hub for capital flows. 

In its release, GASTAT stated: “The volume of inflows amounted to about SR24.9 billion during the second quarter of 2025. It achieved a decrease of 11.5 percent compared to the second quarter of 2024, which was approximately SR28.2 billion.”  

It added: “While it recorded a decrease of 3.5 percent compared to the first quarter of 2025, which recorded SR26 billion.” 

Meanwhile, FDI outflows dropped sharply to SR2.1 billion, down 74.5 percent from SR8.2 billion a year earlier and 10.5 percent lower than SR2.3 billion in the previous quarter.   

While ֱ continues to draw large-scale strategic investments, maintaining momentum will depend on investor confidence in regulatory stability and the pace of economic diversification projects.  

In the Gulf region, the UAE remains a leading competitor for FDI. In 2024, UAE inflows reached $45.6 billion, marking a 48 percent year-on-year increase and earning the country a top-10 global ranking in FDI recipients.   

Dubai, in particular, saw a 33 percent increase in FDI capital in 2024, attracting a record 1,117 greenfield projects.    

GASTAT defines foreign direct investment as cross-border transactions in which a foreign investor holds at least 10 percent of the voting power in a Saudi company.   

The net inflow figure represents the balance between total inflows and outflows, reflecting the extent of retained foreign investment in the Kingdom.  

ֱ has recently stepped up efforts to attract foreign capital through regulatory and market reforms.   

In June, the government issued 83 new industrial licenses and launched 58 factories worth SR 2.85 billion.   

Recent media reports also highlight that authorities are considering easing the 49-percent cap on foreign ownership in listed companies to boost equity market inflows, although no official announcements have been made.  

In parallel, global firms such as Macquarie Asset Management have signed preliminary agreements to establish a presence in the Kingdom, targeting infrastructure and energy sectors.