Category: News

Saudi Arabia’s Tadawul All Share Index slipped on Sunday, losing 65.55 points, or 0.56 percent, to close at 11,694.77.

The total trading turnover of the benchmark index was SR2.64 billion ($704 million), as 85 of the stocks advanced and 155 retreated.

On the other hand, the Kingdom’s parallel market, Nomu, gained 13.93 points, or 0.05 percent, to close at 30,535.46. This comes as 36 stocks advanced while 48 retreated.

The MSCI Tadawul Index lost 10.73 points, or 0.72 percent, to close at 1,479.47.

The best-performing stock was Al-Babtain Power and Telecommunication Co., whose share price surged 9.98 percent to SR46.30.

Other top performers included Alujain Corp., whose share price rose 8.65 percent to SR37.70, as well as Arriyadh Development Co., whose share price surged 6.05 percent to SR34.20.

Naseej International Trading Co. recorded the most significant drop, falling 9.58 percent to SR84.

Al-Rajhi Co. for Cooperative Insurance also saw its stock prices fall 4.63 percent to SR136.

Banan Real Estate Co. also saw its stock prices decline 4.31 percent to SR6.22.

On the announcements front, Tam Development Co. declared its annual financial results for the year ending on Dec. 31, 2024. According to a Tadawul statement, the firm reported a net profit of SR30.13 million in 2024, reflecting a 25.77 percent drop compared to 2023.

The decrease in net profit is primarily attributed to delays in government project awards and budget reviews in the first half of 2024 which affected contract pricing revenue recognition and utilization rates as well as strategic investments in talent acquisition and competitive pricing to secure new logo accounts temporarily compressing margins.

The drop was also linked to higher general and administrative expenses which increased 39 percent due to workforce expansion to support growth.

Tam Development Co. ended the session at SR175.80, down 6.02 percent.

Riyadh Steel Co. has also announced its annual financial results for the year, which ended on Dec. 31, 2024. A bourse filing revealed that the company reported a net profit of SR1.99 million in 2024, reflecting an 82.06 percent drop compared to 2023. This decline is owed to a reduction in selling prices, a decrease in other income, and higher expenses in comparison to the previous year.

Riyadh Steel Co. ended the session at SR2.01, down 0.49 percent.

Middle East Pharmaceutical Industries Co. has announced its annual financial results for the year, which ended on Dec. 31. According to a Tadawul statement, the firm reported a net profit of SR79.85 million in 2024, reflecting a 21.3 percent drop compared to 2023.

This increase in net profit is primarily attributed to strong revenue growth and a higher gross profit margin, driven by product mix diversification and economies of scale from increased production. Nevertheless, the gain in gross profit was partially offset by higher selling, distribution, and general administrative expenses, which were largely due to ongoing investments in marketing, talent acquisition, and other growth-related initiatives.

Middle East Pharmaceutical Industries Co. ended the session at SR135.40, down 1.34 percent.

Alandalus Property Co. also announced its annual financial results for the year ending Dec. 31, 2024.

A bourse filing revealed that the company reported a net loss of SR31.6 million in 2024, down from an SR36.42 million net profit in 2023. This decline is primarily attributed to a decrease in operating profit resulting from operational losses incurred by some affiliated companies, particularly West Jeddah Hospital, due to the opening and commencement of operations at Dr. Sulaiman Al-Habib Medical Hospital in Jeddah at the end of the first quarter of 2024, along with recorded losses in Al-Jawhara Al-Kubra Co. The net loss is also linked to an increase in general and administrative expenses along with a 31 percent surge in financing costs compared to the previous year.

Alandalus Property Co. ended the session at SR23.00, down 1.13 percent.

Source:https://www.arabnews.com/node/2594581

Energy giant Saudi Aramco sees China as one of its key global investment destinations, with ongoing efforts to explore further opportunities across the power generation, chemicals, and technology sectors, according to its CEO.

Speaking at the China Development Forum in Beijing, Amin Nasser emphasized his company’s three-decade-long partnership with the Asian country and its commitment to future growth and innovation.

This comes as Aramco expands into new markets, including China, driven by the nation’s industrial growth, rising energy demand, and push for energy security.

In his speech, Nasser said: “In China, Aramco is actively supporting energy and chemical feedstock security by investing in multiple downstream projects. In fact, China is among our key investment destinations.”

He highlighted current investments in Fujian, Liaoning, Zhejiang, and Tianjin, adding, “I emphasize ‘currently’ because we are continuing to identify additional opportunities, which include energy and chemicals, as well as technology.”

Nasser also highlighted China’s role in the global economy, describing it as the world’s largest consumer and producer of petrochemicals, accounting for nearly half of global demand.

“China is becoming a major hub for the entire chemicals industry value chain, which will be critical to industries of the future. China occupies a key position in Aramco’s global strategy,” he said.

Aramco, as a long-term investor, is excited about the expanding opportunities in China, with Nasser expressing the company’s intent to elevate its relationship with the country.

He underscored the importance of reliable oil and gas supply to China’s economic growth, predicting a shift in oil demand from light transport to petrochemicals due to rising demand for plastics, synthetic fibers, and advanced materials.

“A reliable supply of these materials will be essential to China’s high-quality critical growth industries – including wind and solar energy, automotive, aerospace, and construction,” he added.

In November, Aramco — in partnership with China Petrochemical & Chemical Corp. and Fujian Petrochemical Co. — began construction on a refinery and petrochemical complex in China’s Fujian province.

At the time, the Saudi company said in a press statement that the facility would be fully operational by the end of 2030, featuring a 320,000-barrel-per-day oil refinery.

The complex will also include a 1.5 million-tonnes-per-year ethylene unit, a 2 million-tonne paraxylene unit with downstream derivatives capacity, and a 300,000-tonne crude oil terminal.

Source:https://www.arabnews.com/node/2594659

Arab financial markets showed a mixed performance in February, influenced by global economic uncertainties, geopolitical tensions, and fluctuating investor sentiment, according to a new report.

The latest monthly bulletin released by the Arab Monetary Fund revealed that the composite index for these exchanges recorded a slight decline of 0.06 percent at the end of February.

Arab stock markets did start 2025 on a strong note, buoyed by global gains, with the AMF’s January report citing improved investor sentiment and an international market rebound as driving a 0.97 percent increase in the composite index by month-end.

This momentum faltered in February, with seven exchanges recording losses, compared to just three the previous month.

Despite short-term volatility, the report indicated that investors remain cautiously optimistic about Arab markets.

The best-performing markets included Bahrain, which recorded a 4.3 percent increase, followed by Kuwait and Tunisia.

Meanwhile, Saudi Arabia and Palestine were among the worst-hit, registering losses of 2.45 percent and 2.37 percent, respectively.

Morocco’s Casablanca Stock Exchange and Egypt’s EGX30 also recorded gains.

On the downside, Qatar, Muscat, and Amman experienced declines, along with Iraq.
Source:https://www.arabnews.com/node/2594666

Saudi Arabia approved 26 mergers and acquisitions applications in February, a month-on-month surge of 62.5 percent, highlighting a competitive business climate.

The Kingdom’s General Authority for Competition confirmed the agreements, spanning acquisitions, mergers, and joint ventures, following comprehensive market assessments to ensure fair competition.

Acquisitions led the approvals, comprising 73 percent of the total, followed by joint ventures at 19 percent, and mergers at 8 percent, according to GAC data.

Saudi Arabia mandates economic concentration approvals for M&A deals to prevent monopolies and market distortions.

The rise in approvals aligns with GAC’s broader strategy to foster fair competition, combat anti-competitive practices, and enhance market efficiency, ultimately boosting investor confidence.

Among the approved acquisition requests, Spark Education Platform secured all stakes in three educational institutes in the UAE and Bahrain.

The mergers category included UAE-based Aurora Spirit’s consolidation with US-based Berry Global, while London-based law firm Herbert Smith Freehills merged with US-based Kramer Levin.

In the joint ventures segment, Ajlan & Bros Mining partnered with Moxico KSA Ltd. to launch a zinc-copper project in Khnaiguiyah, southwest of Riyadh. Additionally, Abu Dhabi Future Energy Co. formed a joint venture with France’s EDF International SAS and Nesma Co. to develop a solar energy project in Madinah.

This follows a surge in mergers and acquisitions across the country, with 202 economic concentration requests approved in 2024 — the highest on record — marking a 17.4 percent increase and underscoring the Kingdom’s efforts to enhance its competitive business environment.

The Kingdom’s M&A momentum stands in contrast to the global downturn in deal-making. A December report from GlobalData indicated that worldwide deal volume fell 8.7 percent year on year in the first 11 months of 2024, with the Middle East and Africa region experiencing a relatively modest 5 percent decline.

GAC continues to evaluate economic concentration requests — including mergers, acquisitions, and joint ventures — to safeguard competitive market dynamics. It also monitors various sectors for potential competition law violations, ensuring a level playing field for businesses.

Source:https://arab.news/8st2r

Of late, businesses in the Gulf Cooperation Council region have become more inclined toward pooling their resources to achieve operational efficiency and maximize profits.

The trend of mergers and acquisitions in the GCC is expected to rise, said Moody’s in March 2023. Nearly one year on, the global rating agency’s prediction seems to be spot-on.

M&As are business transactions in which the ownership of firms, business organizations, or their operating units are transferred to or consolidated with another firm or business organization.

Several factors can make such transactions successful in today’s world such as synergies, trust, and integration, according to Andrew Nichol, partner at Lumina Capital Advisers.

“Synergies are unlikely to deliver the desired outcomes of selling and buying shareholders without a clear plan on how a merged entity creates more significant value than their individual parts,” Nichol told Arab News.

He added: “Trust because ultimately, deals are done between people. Be they the shareholders, management teams, or employees, it is critical that communication throughout the process remains open, transparent, and oriented toward achieving the objectives set out in the original deal thesis.”

Finally, about the integration aspect, Nichol noted: “Integration, because M&A does not stop once the legal agreements are signed.”

Additionally, setting appropriate key performance indicators to achieve synergies and targets, integrating teams, and developing a clear longer-term plan are all critical in setting up a deal for success, he reiterated.

The year 2023 saw a real shift in terms of “who” has been transacting into and out of the region, Nichol said.

“In H1, we saw larger deals, typically led by SWFs (sovereign wealth funds) — SAVVY Gaming/PIF/Scopely, KSA; Blackstone/ADIA/Cvent Holding, UAE,” Nichol underlined.

“As the year progressed, we also saw an increase in private sector-led deals, as well as a resurgence in private equity activity,” he added.

Nichol continued: “In November, STS, a leading digital transformation solutions provider across Saudi Arabia, the UAE, and the wider GCC announced its acquisition by ZainTECH.”

ZainTECH is a UAE-based top-tier managed security services provider that aims to help enterprises protect against, detect expediently, and respond effectively to cybersecurity threats.

According to Nichol, this specific M&A stood out in 2023 amid all other similar transactions in the region.

“The STS/ZainTECH transaction, which we advised on, stood out due to its highly strategic nature for both companies,” he disclosed.

“A buyer, seeking to extend and amplify its services offering, access top talent, and expand the geographies it serves, with a vendor recognizing the opportunity of partnering with a pioneering regional digital solutions provider,” Nichol explained.

Moving on, he also shed light on projections on the nature of M&As to expect in the region in 2024.

“In 2023, the region cemented its position as a net exporter of innovation due to the regional giga-projects, digital transformation efforts, and the implementation of artificial intelligence. This will continue into 2024,” Nichol said. This comes as the region has shifted from talking about energy transition to becoming a global leader in implementing some of the world’s most comprehensive and diverse renewable energy programs, according to him.

“In 2024, we will see more deals in the region as global firms continue to grow/seek access to regional projects,” Nichol projected.

He added: “We expect growth across energy transition, healthcare, travel and tourism as well as gaming, engineering and project management and digital transformation sectors.”

Highlighting the same subject, Ali Anwar, managing director of Alvarez & Marsal Global Transaction Advisory Group in the Middle East, said in a recent report: “Investors have experienced a challenging year in 2023 when M&A activity was hit by concerns about the macroeconomic environment and the impact of higher interest rates.”

He added: “While those challenges haven’t fully abated, 2024 holds the potential for dealmaking to show some improvement.”

One major positive for the M&A market heading into 2024 is receding uncertainty about the trajectory of interest rates, the top executive underlined.

Anwar went on to shed light on the fact that market participants are seen being more confident than they have been in several months and that there seems to be a promising inversion of the curve since the end of summer.

He stated: “We are seeing more sell-side activity and, therefore, expect deal opportunities to launch in early 2024.”

Rise in cross-border activities

In 2023, cross-border deals formed the majority of closed deals, Nichol revealed.

Cross-border activities refer to any transfer of property, goods, or services between individuals or business entities who reside in different jurisdictions.

“In our September 2023 cross-border deals survey, 70 percent of respondents had recently or planned to close a cross-border deal within the next 18 months. This was double the levels of our previous survey,” Nichol highlighted.

He added: “Deals in the region are today driven by the desire to create regional champions through consolidation in key sectors such as construction, health care, and infrastructure services, in conjunction with transactions centered around international interest in joint ventures and partnering to deliver skills and technologies for complex megaprojects in AI, digital transformation and advanced manufacturing.”

Talking about expectations in 2024, Nichol clarified that it is projected to be another bumper year for cross-border Middle East transactions.

This comes as private equity — both direct and secondary — has become the fastest-growing asset class in the region, and this trend will continue into 2024, Nichol said.

“With regional funds being raised from domestic, international, and SWF participants, we predict the volume of PE deals will rise,” he explained.

Likely spike in FDIs

The year 2022 was a record year for foreign direct investments in the GCC region, particularly Saudi Arabia and the UAE, exceeding previous 2012 highs, Nichol said.

“While we are still awaiting full-year 2023 FDI numbers, we predict that Saudi Arabia’s FDI will have exceeded the UAE’s, and both countries will see double-digit year-on-year FDI growth,” Nichol underscored.

FDI is a category of cross-border investment in which an investor resident in one economy establishes a lasting interest in and a significant degree of influence over an enterprise resident in another economy.

As for 2024’s pipeline in terms of FDIs, it is projected to be somewhat robust.

“FDI flow growth rate has been diminishing in 2023; however, long-awaited public-private partnership projects are in the pipeline, especially in healthcare, transportation, logistics, and sports,” Razeen Capital CEO Mohammed Al-Suwayed told Arab News.

Razeen Capital is a financial securities consultancy firm that Al-Suwayed founded in January 2021.

“So we’re most likely to see a spike in the FDI growth rate this year and the years after,” Al-Suwayed projected.

That being said, it is clear that the GCC region is on track to experience a bright future ahead in terms of M&As as well as cross-border activities and FDIs.

Consequently, this will most likely help offset the rising operating expenses and boost cost-efficiency further in the region.

Source:https://arab.news/ppdjw

The Royal Commission for Riyadh City’s board of directors has announced the launch of the “Riyadh Creative District,” the Saudi Press Agency reported on Thursday.

The initiative aims to position Riyadh as a global creative and media hub while reinforcing the Kingdom’s leadership in the creative economy, SPA said.

The new project is set to become a cornerstone in Riyadh’s evolution into a world-class metropolis, integrating with the capital’s major development initiatives.

It aims to foster a thriving ecosystem where creative minds, industry leaders, and emerging talent can collaborate to develop content and new ideas, drive cultural and technological advancements, and contribute to the Kingdom’s Gross Domestic Product.

The Creative District aligns with Saudi Arabia’s long-term strategic vision by emphasizing the role of media, technology, culture, and innovation in economic diversification and sustainable growth.

The CEO of RCRC Ibrahim Mohammed Al-Sultan thanked the Kingdom’s leadership for its continued support of the commission’s projects.

“The Riyadh Creative District is designed to be a vital extension of the capital’s creative, cultural, and economic landscape, reinforcing the city’s status as a dynamic hub for content creation and innovation,” he said.

“Through this initiative, we are not only establishing an inspiring space for creative industries to thrive, but also providing a gateway for global talent to engage with the Kingdom’s creative economy.

“This initiative embodies Saudi Arabia’s forward-looking vision to cultivate a knowledge-based society, and develop a globally integrated creative sector that generates sustainable economic and social impact”, the CEO added.

A milestone in the project’s launch is the signing of a strategic partnership agreement between RCRC and King Abdullah Financial District, ensuring a structured and integrated approach to its implementation.

The collaboration is expected to catalyze the expansion of the creative industries in Saudi Arabia, bridging the gap between local and international expertise and fostering cross-sector innovation.

The creative district is set to redefine the role of creativity in economic development, by offering a dynamic platform that connects designers, artists, entrepreneurs, and technology pioneers.

It will serve as an incubator for new business models, cultural enterprises, and digital transformation projects, reinforcing Riyadh’s position as the regional epicenter for creative excellence, SPA said.

Apart from GDP contributions, the district will play a crucial role in cultural exchange and community engagement by hosting interactive programs, industry events, and knowledge-sharing initiatives that empower emerging talent and facilitate the exchange of ideas.

Its impact is expected to extend beyond Riyadh, influencing the broader Middle Eastern creative ecosystem and elevating the Kingdom’s standing as a destination for investment in the creative economy.

The district also underscores the Kingdom’s commitment to fostering a globally competitive creative sector, that not only enhances the quality of life but also drives innovation-led economic transformation.

By offering a supportive environment for creatives, startups, and established enterprises, the district is poised to shape the future of creative industries in Saudi Arabia, offering new employment opportunities, accelerating digital adoption, and laying the groundwork for a knowledge-driven economy.

With a focus on sustainability and long-term impact, the creative district will also contribute to Riyadh’s broader urban transformation, integrating smart infrastructure, cutting-edge technology, and sustainable design principles to create an environment where creativity and innovation can flourish.

The district will also help attract both regional and international investment in the creative industries, ensuring that Saudi Arabia remains at the forefront of global creative and cultural advancements.

Source:https://arab.news/4t3su

Saudi Arabia’s international non-oil exports, including re-exports, saw a 10.7 percent year-on-year increase in January, according to new data.

Released by the General Authority for Statistics, the figures also show that national non-oil exports, excluding re-exports, rose by 13.1 percent during the same period.
Additionally, the value of re-exported goods grew by 5.7 percent year on year.

This aligns with Saudi Arabia’s Vision 2030 goal of building a robust non-oil sector to transform the Kingdom’s economy and reduce its reliance on oil revenues. In November, Minister of Economy and Planning Faisal Al-Ibrahim revealed that non-oil activities now account for 52 percent of the country’s gross domestic product.

The GASTAT report said: “Meanwhile, merchandise exports increased by 2.4 percent in January 2025 compared to January 2024, while oil exports decreased by 0.4 percent. Consequently, the percentage of oil exports out of total exports decreased from 74.8 percent in January 2024 to 72.7 percent in January 2025.”

It added: “On the other hand, imports increased by 8.3 percent in January 2025, whereas the surplus of the merchandise trade balance decreased by 11.9 percent compared to January 2024.”

The data further indicated that the ratio of non-oil exports, including re-exports, to imports, increased to 36.5 percent in January 2025 from 35.7 percent in the corresponding month in 2024.

This is primarily linked to the rise in non-oil exports at a higher rate than the increase in imports, with non-oil exports increasing by 10.7 percent compared to an 8.3 percent surge in imports during the same period.

“Among the most important non-oil exports are ‘chemical products,’ which constituted 23.7 percent of the total non-oil exports, recording a 14.4 percent increase compared to January 2024. Followed by ‘plastics, rubber, and their products,’ which represented 23 percent of total non-oil exports, with a 10.5 percent increase compared to January 2024,” the report highlighted.

“However, the most important imported goods were “‘machinery, electrical equipment, and parts,’ which constituted 25.9 percent of total imports, rising by 27.4 percent compared to January 2024. Followed by ‘transportation equipment and parts,’ which represented 13.8 percent of total imports, with a 10.3 percent increase compared to January 2024,” it added.

The GASTAT data also disclosed that in January, China was the main destination for the Kingdom’s exports, amounting to 15.2 percent of the total.

India came next with 10.9 percent of total exports, and Japan followed with 10.2 percent of total exports.

South Korea, the UAE, and Egypt, as well as Bahrain, the US, Malaysia, and Singapore were among the top 10 export destinations. Together, exports to these countries account for 67.5 percent of the Kingdom’s total exports.

When it comes to the top customs for imports, the report explained that the King Abdulaziz Sea Port in Dammam is one of the most significant terminals through which goods crossed into Saudi Arabia, accounting for 28.8 percent of total imports in January.

Among the other major ports of entry for imports were Jeddah Islamic Sea Port with 23.1 percent, followed by King Khalid Int Airport in Riyadh with 12.4 percent, and King Abdulaziz Int. Airport with 8.6 percent, as well as King Fahad Int Airport in Dammam with 5.5 percent.

The report highlighted that these five ports together accounted for 78.4 percent of the Kingdom’s total merchandise imports.

Source:https://www.arabnews.com/node/2595040

Saudi Arabia’s unemployment rate for nationals in the fourth quarter of 2024 reached 7 percent, marking a decrease of 0.8 percentage points compared to both the previous quarter and the same period last year, official data showed.

The data, released by the General Authority for Statistics, indicate a slight increase in the employment-to-population ratio for nationals, suggesting continued progress in the creation of job opportunities for the Kingdom’s growing workforce.

Although the overall labor force participation rate experienced modest declines, these figures underscore Saudi Arabia’s ongoing efforts to achieve the ambitious goals set forth in Vision 2030, particularly in terms of enhancing job creation and driving economic growth.

The improvement in the labor market is a critical component of Vision 2030, which aims to generate employment opportunities for Saudis while stimulating broader economic development. Strengthening the labor market remains a key pillar of the Kingdom’s long-term socio-economic strategy.

National labor market overview

The Labor Force Survey revealed that the overall unemployment rate for both Saudi nationals and non-Saudis reached 3.5 percent in Q4 2024, showing a decrease of 0.2 percentage points compared to the previous quarter. However, the figure marked a slight increase of 0.1 percentage points from Q4 2023.

The overall labor force participation rate for both Saudis and non-Saudis stood at 66.4 percent, a decrease of 0.2 percentage points from Q3 2024 and a 0.6 percentage point decline year on year.

Meanwhile, the employment-to-population ratio for Saudi nationals rose by 0.1 percentage points to 47.5 percent, reflecting a 1.0 percentage point increase from Q4 2023.

However, the labor force participation rate for Saudis decreased by 0.4 percentage points to 51.1 percent, although this still represented a 0.7 percentage point increase compared to the previous year.

Participation by gender

For Saudi females, the labor force participation rate decreased by 0.2 percentage points to 36 percent. Nevertheless, their employment-to-population ratio improved by 0.5 percentage points to 31.8 percent, and their unemployment rate dropped by 1.7 percentage points to 11.9 percent compared to the previous quarter.

Conversely, Saudi males experienced a 0.7 percentage point decrease in their labor force participation rate, which fell to 66.2 percent. Their employment-to-population ratio also declined, reaching 63.4 percent. However, the unemployment rate for Saudi males decreased to 4.3 percent compared to Q3 2024.

Youth employment trends

In terms of youth employment, GASTAT reported that the employment-to-population ratio for Saudi female youth (aged 15-24) increased by 0.3 percentage points to 13.9 percent in Q4 2024. In contrast, the employment-to-population ratio for Saudi male youth remained steady at 29.7 percent, although their labor force participation rate decreased by 0.8 percentage points to 33.8 percent.

The unemployment rate for Saudi youth also showed improvement, declining by 1.8 percentage points to 12.2 percent compared to the previous quarter.

Employment trends in core working-age group

For Saudis aged 25 to 54 years, key labor market indicators showed a slight increase in the employment-to-population ratio, which rose by 0.1 percentage points to 64.9 percent. However, the labor force participation rate for this group decreased by 0.2 percentage points to 69.2 percent. The unemployment rate in this age group also improved, falling to 6.2 percent compared to the previous quarter.

For Saudis aged 55 and above, labor market indicators for Q4 2024 indicated a decline in both the unemployment rate and labor force participation rate compared to the previous quarter.

Active job search

The GASTAT report highlighted that Saudi job seekers employ various methods in their active job search, with an average of 5.0 methods used per individual. The most common approach was inquiring with friends or relatives about job opportunities, utilized by 86.9 percent of jobseekers. This was followed by directly applying to employers (73.9 percent), and using the national unified employment platform, Jadarat (65.4 percent).

Willingness to work

Further insights into the unemployed Saudi population revealed that 94.1 percent are open to accepting job offers in the private sector. Among the unemployed, 61.9 percent of Saudi females and 45.2 percent of Saudi males are willing to commute for at least one hour. Additionally, 77.5 percent of unemployed Saudi females and 90.7 percent of unemployed Saudi males expressed a willingness to work for eight or more hours per day.

Source:https://www.arabnews.com/node/2595043

The Central Bank of the UAE on Thursday introduced a new symbol for the nation’s currency, both in its physical and digital forms, marking a significant step in reinforcing the UAE’s status as a leading global financial center.

According to the Emirates News Agency or WAM, the newly unveiled dirham symbol draws inspiration from the English letter “D” and features two horizontal lines that represent financial stability. The design is also a nod to the UAE flag, symbolizing national pride and resilience.

This symbol will serve as a global representation of the dirham, promoting the UAE’s currency across international markets.

The launch of the symbol coincides with the UAE’s adoption of the FX Global Code, which positions the CBUAE as the first central bank in the Arab region to join this important framework.

The FX Global Code is renowned for promoting best practices and ethical standards within the foreign exchange market, and this step further enhances the UAE’s commitment to integrity and transparency in financial dealings.

Alongside the physical dirham symbol, the CBUAE is advancing the issuance and circulation of the digital dirham, a core initiative of the Financial Infrastructure Transformation Program launched in 2023.

The digital dirham will feature a circular design, incorporating the UAE flag’s colors, which reinforces the nation’s sense of pride and modernity in the evolving financial landscape.

Khaled Mohamed Balama, governor of the CBUAE, expressed his enthusiasm for these transformative steps: “We are proud to unveil today the new symbol for the UAE’s national currency and the design of the digital dirham wallet,” he stated.

“The digital dirham, built on blockchain technology, is expected to enhance financial stability, improve inclusion, increase resilience, and help combat financial crime.”

He further emphasized that the digital dirham is set to drive innovation in the financial sector by enabling the creation of new digital products and services, while lowering costs and expanding access to international markets.

The digital dirham will be made available through licensed financial institutions, including banks, exchange houses, fintech firms, and other financial services providers. It will be legally recognized as a universal payment method, alongside physical currency, creating a seamless experience for both digital and traditional transactions.

Key features of the digital dirham include:

Tokenization: This innovative process will enhance financial inclusion by allowing fractionalized access to digital assets, thereby improving liquidity.

Smart contracts: The digital dirham will facilitate the use of smart contracts, automating the execution of complex transactions, including multi-party agreements and conditional obligations, with instant settlement.

To support the digital currency, the CBUAE has developed a robust and secure platform for its issuance and circulation. This platform includes a user-friendly digital dirham wallet, designed to handle a wide range of financial transactions, including retail and wholesale payments, cross-border transfers, withdrawals, and top-ups. It also ensures ease of access and a convenient user experience, adhering to industry best practices.

As the UAE continues to lead in the digital economy, the digital dirham platform is designed to adapt to emerging financial needs, facilitating innovative solutions and reinforcing the country’s position as a global leader in digital payments.

Source:https://www.arabnews.com/node/2595058

Oil prices eased a touch but held near one-month highs on Friday as they headed for a third weekly gain on a tightening global supply outlook after the US imposed tariffs against countries buying oil from Venezuela and placed curbs on Iranian oil trade.

Brent crude futures lost 14 cents, or 0.2 percent, at $73.89 a barrel. US West Texas Intermediate crude futures were down 12 cents, or 0.2 percent, to $69.80 a barrel at 7:31 Saudi time.

The moves were minor compared with the gains of over 2 percent for both contracts so far this week. They are up more than 7 percent since hitting multi-month lows in early March.

The main driver of the price rally has been the shifting landscape of global oil sanctions, BMI analysts wrote in a market commentary.

US President Donald Trump on Monday announced new 25 percent tariffs on potential buyers of Venezuelan crude, days after US sanctions targeting China’s imports from Iran.

The order added fresh uncertainty to buyers and saw trade of Venezuelan oil to top buyer China stall. Elsewhere, sources said India’s Reliance Industries, operator of the world’s biggest refining complex, will halt Venezuelan oil imports.

“The potential loss of Venezuelan crude exports to the market due to secondary tariffs and the possibility of the same being imposed on Iranian barrels has caused an apparent tightness in crude supply,” said June Goh, a senior oil analyst at Sparta Commodities.

Oil was also underpinned by signs of better demand in the US, the world’s top oil consumer, as the country’s crude stocks fell more than anticipated.

Data by the Energy Information Administration showed US crude inventories fell by 3.3 million barrels to 433.6 million barrels in the week ended March 21, compared with analysts’ expectations in a Reuters poll for a 956,000-barrel draw.

The broader global dynamics for oil trade, however, pointed to a period of heightened uncertainty, as a blitz of US tariffs against trading partner countries raises fears of a sharp economic downturn in a blow to oil demand.

As a result, analysts don’t expect sharp gains in oil prices to be sustained in the current environment.

“While the market is suffering under extreme uncertainties, we are holding to our forecast for Brent crude to average $76 per barrel in 2025, down from $80 per barrel in 2024,” the BMI analysts wrote.

Source:https://www.arabnews.com/node/2595135