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November 9, 2021
Kuwait leads GCC markets in October
Kuwait was the best performing GCC market in October, supported by the rise in oil prices. The Boursa Kuwait All Share index registered gains for the eighth consecutive month, gaining 3.5% for the month and extended its yearly gains to 28.2%. Kuwait government had lifted precautionary restriction measures for COVID-19 from Oct 24, with certain conditions. Kuwait Market Performance Source: Refinitiv Among sectors, the Consumer Discretionary was the top gainer, rising 13.1% followed by Financial Services at 9.1%. Utilities sector...
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October 12, 2021
Fintech in Islamic finance: How Kuwaiti banks are pioneering the trend
This article was first published in IFN Volume 18 Issue 40 dated the 6th October 2021 Technology continues to disrupt the traditional industries and Islamic banking is not an exception. Fintech, short for financial technology, is an omnibus term that basically includes any technology which helps the banks and other financial institutions deliver services and products to their customers faster and in a more efficient way. Today anything from cryptocurrency to e-payment services come under the ambit of fintech. Islamic...
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October 7, 2021
What Moved GCC Equity Markets?
S&P GCC composite index rose by 1.5%, with Qatar and Saudi Arabia leading the gainers. Qatar’s main index rose 3.5% for the month, while Abu Dhabi ended the month mildly positive. Dubai markets gave up some of the sharp gains witnessed in the month of August, closing 2.0% down for the current month. Abu Dhabi continues to be the top performer for the year, supported by the rise in oil prices, strong earnings and favourable valuations. Despite the run-up in...
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September 13, 2021
Filling the gap in ESG framework: Saudi Arabia
Saudi Arabia's sovereign wealth fund has asked banks to help it develop an environmental, social and governance (ESG) framework, as per a recent article in Reuters. According to the article, development of ESG framework was likely a precursor for a multibillion dollar bond sale, which would be the Saudi wealth fund's first. ESG has been one of the hottest topics in the world of finance. There is ample demand from investors for ESG compliant instruments but due to lack of...
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September 9, 2021
Could Delta variant play spoilsport for Oil prices?
The Delta variant, which the WHO has called the most transmissible variant of the coronavirus, has caused a surge in covid-19 cases around the world. With a rise in cases, comes a rise in restrictions by the governments to curb the transmission. Travel restrictions in different parts of the world, is set to exert downward pressure on the global jet fuel demand. During the week ending 20th August, Brent crude oil price witnessed its biggest weekly loss this year of...
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September 8, 2021
Oil revenues & private sector growth to speed up GCC economic recovery in 2022
As the world charts its recovery from COVID-19’s impact, businesses and trade around the world begin to hit normalcy, reviving the global demand for oil and consequently the global oil prices. As of August’21, price of IPE Brent is up nearly 41% year to date. OPEC+ is firm on its stance of cutting oil production until mid-2022, this is set to support global oil prices and provide renewed vigour for GCC economies. According to Institute of International Finance (IIF), the...
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September 7, 2021
Kuwaiti banks – Earnings report Q2’2021
All major Kuwaiti banks reported their financial results for the second quarter of 2021. The Kuwait banking sector reported a healthy growth in net income after taxes for Q2’21 compared to that of Q2’20, mainly due to the reduction in provisions and impairment charges for bad loans that were recorded in the prior quarters due to higher expected credit losses. Due to historically low interest rates and increased provision for bad debts, profitability of the Kuwait banking sector was impacted...
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September 6, 2021
Foreign investment in Saudi stock market up by 150%
It is reported that the foreign investment in the Kingdom's stock market increased by more than 150 percent by the end of Q2 2021, compared to late 2018. Banking, basic materials, energy and communications attracted the most foreign investment. This can be attributed to the Saudi Arabia’s efforts to develop the financial market and expand the institutional investment base. The value of foreign investment in Saudi Stock Market was USD 73.6 billion in 2021Q2 comprising mainly of Qualified Foreign Investors...
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September 5, 2021
GCC Stock Markets – Positive earnings growth strengthen business optimism
According to our recently released Monthly Market Review for the month of August, GCC equity market gained by 3.6%. At country level, all GCC markets except Oman registered gains for the month. Globally, equities continued their bullish rally as indicated by the MSCI World Index which gained by 2.3%, extending YTD gains of 16.8%. MSCI EM Index gained towards the month-end recuperating from its mid-month weakness. U.S and U.K were also positive for the month. GCC Markets: Most markets end...
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July 11, 2021
MSCI Emerging Markets Index – How is the GCC placed?
With a total market capitalization of USD 8.3 trillion, the MSCI Emerging Markets (EM) Index has emerged as one of the most important global indices tracked by many ETFs and mutual funds. Inclusion in the index has become sought after not only due to the potential inflows from overseas funds, but also the credibility it gives to the included country’s capital markets. Weightage of GCC nations in the MSCI EM index is quite low Among the GCC, companies from UAE...