Kuwait Projects $10 Billion Budget Deficit For 2022-2023

Alkhabeer Capital has signed a strategic partnership agreement with Fasanara Capital, a $5 billion global asset manager specializing in technology-enabled credit solutions, according to a press release.

The signing of the memorandum of understanding (MoU), which came during an exclusive event held in Jeddah under the theme ‘Fintech-Originated Private Credit – the Asset Class and its Potential in the Kingdom’, marks a key milestone in our joint mission to unlock fintech private credit opportunities in the Kingdom.

The CEO of Alkhabeer Capital, Ahmed Saud Ghouth, stated: “Saudi Arabia’s investment landscape is undergoing rapid transformation, driven by digitalization, innovation, and a push for diversified capital formation.”

Ghouth added: “Our partnership with Fasanara Capital reflects a shared ambition to pioneer new asset classes that respond to the evolving needs of investors and align with the objectives of Vision 2030.”

Meanwhile, Francesco Filia, Founder and CEO of Fasanara Capital, said: “This collaboration represents a significant step toward building a more inclusive and technologically advanced financial ecosystem. By leveraging data-driven lending models and next-generation credit infrastructure, we aim to deliver scalable, transparent, and risk-conscious solutions that address the growing demand for alternative fixed-income strategies in the Kingdom.”

It is worth noting that Alkhabeer Capital is one of the leading capital market institutions in Saudi Arabia, authorized by the Capital Market Authority (CMA) and headquartered in Jeddah, with a branch in the capital Riyadh.

Moreover, the company provides innovative world-class investment products and solutions in private equity, financial markets, and real estate investments, in addition to offering investment banking and brokerage services.

Qatar National Bank’s (QNB) priced its 5-year USD benchmark Reg S senior unsecured bond at 4.50%, or US Treasuries plus 70 basis points, tightening from initial price thoughts in the UST + 100bps area.

Books were in excess of $3 billion, including $100 million in joint lead manager interest.

Asian investors made up 53% of the investors, followed by 27% UK/Europe while 18% were MENA investors. Banks made up 48% of the investors.

The issuance is expected to be rated Aa3 by Moody’s / A+ by S&P / A+ by Fitch,  matching QNB’s existing ratings. QNB Finance Ltd. is the issuer.

Saudi Aramco is close to a deal to raise around $10 billion from a group led by BlackRock that has been set up to invest in the infrastructure of Aramco’s Jafurah gas project, two people with knowledge of the matter told Reuters.

The agreement would be the latest in a series of financial arrangements, akin to borrowing, that allow Gulf oil producing countries to raise money to diversify their economies while promising investors a stable revenue stream.

The two people said the latest transaction was expected to be similarly structured to two Aramco infrastructure deals in 2021, including one in which BlackRock invested in Aramco’s gas pipeline networks, allowing the Saudi company to generate funds.

Aramco kept control of the underlying infrastructure while the investors earned tariffs from the oil firm for the use of the pipelines.

Both sources spoke on condition of anonymity because the talks are private. They did not say when the deal might be finalised. Aramco and BlackRock declined to comment.

The $100 billion Jafurah project, potentially the biggest shale gas project outside the United States, is central to Aramco’s ambitions to become a major global player in natural gas and to boost its gas production capacity by 60% by 2030 from 2021 levels.

The Jafurah assets underpinning the deal include gas pipelines and a gas processing plant, one of the sources said.

Aramco has long been the biggest source of the kingdom’s revenues. Saudia Arabia has been seeking to diversify its economy as oil prices have come under pressure from global economic uncertainty that could further reduce demand.

They have also been depressed by increased output from the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, which is striving to boost market share.

Earlier this month, Reuters reported that Aramco was seeking to sell up to five gas-fired power plants to raise funds.

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In 2021, BlackRock and EIG were among investor groups that took stakes in companies that leased usage rights in Aramco’s gas and oil pipeline networks. The groups leased them back to Aramco for a 20-year period in two separate deals, helping the Saudi company to raise nearly $28 billion.

Described as lease and leaseback transactions by Aramco at the time, they were structured as a form of borrowing, Robin Mills, chief executive of consultancy Qamar Energy told Reuters.

“The pipeline deals were basically a securitisation” and not a sale of the asset, whose ownership remained with Aramco, Mills said.

In those deals the groups took 49% stakes in subsidiaries Aramco Oil Pipelines and Aramco Gas Pipelines, in which Aramco retains 51% stakes. The subsidiaries receive a tariff from Aramco for flows of crude and natural gas, backed by minimum commitments on throughput.

The deals followed other transactions in the region, including Abu Dhabi’s ADNOC sale of minority stakes in the companies owning the leasing rights to its oil and gas pipelines. (Reporting by Sarah McFarlane in London, Hadeel Al Sayegh and Federico Maccioni in Dubai, additional reporting by Anirban Sen and Yousef Saba, editing by Anousha Sakoui and Barbara Lewis)

As the Khareef season now underway, attracting thousands of visitors to Dhofar, Bank Muscat, the leading financial service provider in the Sultanate of Oman, continues to provide the latest digital solutions to facilitate payment processes. The Bank offers the Tap‘N’Go payment service which is a contactless payment service, enabling merchants and business owners, to accept card payments directly via their smartphones.

This service is an ideal option for small businesses such as food trucks and stalls, allowing them to receive payments from international visitors quickly and easily, without the need for point-of-sale devices or cash handling. Any Android smart device can accept payments using the Tap‘N’Go application, which supports all major cards that comply with Near Field Communication (NFC) technology.

The service targets home-based business owners, small retail shop owners, food truck and cafe owners, delivery companies, taxi drivers, startups and other business owners. Customers who are holding a merchant account with Bank Muscat can enjoy a seamless and secure payment experience through Tap‘N’Go payment service, especially during the Khareef season.

The Tap‘N’Go payment service is an important addition to the digital payment options offered by Bank Muscat. This service enhances customer experience, especially during the summer and travel season when visitors need fast and efficient payment solutions. This service will enable merchants to receive payments more efficiently, contributing to the economic activity in Dhofar.

The Tap‘N’Go payment service is part of a broader range of digital solutions launched by Bank Muscat, including Samsung Pay, Apple Pay and QR code payments, enhancing customer experiences and facilitating daily financial transactions. Bank Muscat is keen to adopt top-notch banking services, enabling customers to complete their transactions safely in no time. The innovative digital solutions are designed to meet customers’ needs and fulfill their changing requirements.

Around 60% of Middle Eastern wealth funds are willing to increase their allocations to Chinese assets over the next five years, according to the latest Invesco global sovereign asset management study.

The remaining 40% will continue to maintain their investment.

Sovereign funds in Asia-Pacific and Africa will be more proactive, with 88% and 80%, respectively, expressing intentions to increase their investments. About 73% of North American funds are open to investing in China.

The global funds cited several factors when justifying their increased investments in China, with 71% identifying strong returns made in China, 63% wanting to diversify, and 45% citing increased market access for foreign investors.

The most attractive sectors for investment in China were digital technology and software, advanced manufacturing and automation, and clean energy and green technology, the Invesco report said.

Martin Franc, CEO of Asia ex-Japan, Invesco, said that respondents approved of supportive policies from Beijing and believed the market was a place where innovative technologies could blossom.

“Their growth story has only a limited amount to do with what happens in the West. So, it is phenomenal for political and capital diversification,” the study reported quoting an unnamed Middle East-based sovereign wealth fund.

The study polled 141 senior investment professionals, including chief investment officers, heads of asset classes, and portfolio strategists, from 83 sovereign wealth funds and 58 central banks worldwide, who collectively managed $27 trillion in assets.

Air Arabia Abu Dhabi, the capital’s first low-cost carrier, has expanded its fleet with the addition of two Airbus A320 aircraft, bringing its total fleet size to 12 aircraft, as part of the airline’s ongoing growth strategy.

The carrier also announced plans to add two more Airbus A320 aircraft before the end of the year. This planned fleet increase will boost total capacity by 40 percent in 2025, further reinforcing Air Arabia Abu Dhabi’s commitment to the growth of Abu Dhabi’s aviation sector and the emirate’s broader economic development.

Adel Al Ali, Group Chief Executive Officer, Air Arabia, said, “The addition of new aircraft and our strategic fleet expansion reflect our ongoing commitment to enhancing operational efficiency and expanding our network reach. This growth supports the rising demand for air travel to and from Abu Dhabi.”

He added, “The planned capacity increase in 2025 will further contribute to the capital’s broader economic and tourism vision while continuing to offer value-driven air travel to our customers.”

Air Arabia Abu Dhabi’s recent network expansions include new routes to Yerevan, Almaty, and Sialkot, further broadening its reach. The airline now connects Abu Dhabi with non-stop service to over 30 destinations across the Middle East, Africa, Central Asia, the Indian Subcontinent, and Eastern Europe, offering seamless travel options for residents, businesses, and visitors alike.

Turkey’s Trendyol Group, Baykar CEO Haluk Bayraktar, Abu Dhabi’s sovereign fund ADQ and Ant International have agreed to explore a potential joint fintech venture offering digital financial services in Turkey, the companies said on Wednesday.

The four parties signed a memorandum of understanding to form a platform that would provide services including digital payments, loans, deposits, investments and insurance. The launch would be subject to regulatory approvals.

The companies said the platform would target individuals and small businesses, with a particular focus on Trendyol’s network of sellers.

“The project aims to combine Trendyol’s e-commerce infrastructure, Baykar’s AI and cybersecurity tools and Ant’s experience in financial technology,” a statement said.

Bayraktar, best known for leading Turkey’s top drone manufacturer, said the initiative would rely on domestic infrastructure and aim for high security standards.

Alibaba Group President Michael Evans, representing Trendyol’s main investor, said the partnership reflected interest in Turkey’s digital economy while ADQ’s deputy CEO, Mansour AlMulla, cited the country’s growth potential in the sector.

Ant International said Turkey’s large and digitally active population made it a significant market.

ADNOC will transfer its 24.9% stake in Austrian oil and gas group OMV AG (OMV) to its $80 billion lower-carbon energy and chemicals investment company XRG, which it launched in November last year.

The transfer is aligned with ADNOC’s strategy to consolidate its international growth investments under XRG.

XRG will also hold ADNOC’s proposed 46.94% stake in the yet to be established Borouge Group International upon completion of the transaction.

Dubai-based ship operator Gulf Navigation Holding (GulfNav)  has raised 500 million dirhams ($136 million) from the sale of Mandatory Convertible Bonds (MCBs), which will fund part of the AED 3.2 billion cost of acquiring Brooge Energy Limited (BEL).

The remainder will be funded through the issuance of approximately 359 million new shares to Brooge at AED 1.25 per share (subject to a one-year lock-up), and an additional AED 2.3 billion in MCBs issued to Brooge, convertible at AED 1.25 per share, also with a one-year lock-up post-conversion.

The deal is for the acquisition of the assets and subsidiaries, including Brooge Petroleum and Gas Investment Company FZE, and Brooge Petroleum and Gas Investment Company Phase III FZE, from NASDAQ-listed Brooge Energy Limited.

Gulf Nav, the only crude shipper listed on the Dubai Financial Market, said it will not open up a second tranche of bond sale, originally reserved for major shareholders, as the full amount was raised in the first tranche.

The bonds were offered at AED 1.10 per bond and will be converted into shares on or before 29 October 2025. The deal is expected to be finalised by Q3 2025.

GulfNav is a major operator in maritime transport and oil storage. The acquisition of Brooge, with its facilities for the storage of fuel oil, crude oil, and petroleum products, is expected to double GulfNav’s storage infrastructure, particularly in Fujairah, a critical bunkering port in the UAE.

Saudi Arabia topped the Middle East and North Africa (MENA) for sustainable bond issuances in the first six months of 2025, driven by Vision 2030 infrastructure spending, according to Bloomberg’s Capital Markets League Tables.

Issuances from the kingdom reached $6.25 billion in H1 2025, a 25% increase year-on-year (YoY) and accounting for 66% of total green, social, sustainable, and sustainability-linked (GSSS) bond activity in the region.

The Saudi government led with a $1.58 billion issuance, while Al Rajhi Bank issued two sustainable sukuks totaling $1.7 billion. Additional issuers included Saudi Electricity Company ($1.25 billion), Alinma Bank ($500 million), and Saudi Awwal Bank with a $650 million additional tier 1 (AT1) sukuk.

Annual regional GSSS issuances fell 4.4% to $9.47 billion in the first six months of 2025 from $9.91 billion a year earlier, impacted by higher global interest rates and a pause in deals from Egypt and Qatar.

The UAE contributed the remaining 34% of the total, with $3.22 billion in GSSS issuances. Notable issuances were from National Central Cooling Company (Tabreed) at $700 million and real estate developer Omniyat, which raised $500 million, according to Bloomberg.

Islamic instruments dominated the regional sustainable debt issuances, totaling $6.8 billion — a 17% YoY increase. AT1 issuance reached $3.15 billion — the highest first-half total in the past five years.

AT1 issuances help banks comply with the Basel 3 framework ahead of the initial phase implementation in 2026.

“The sustainable bond market in Saudi Arabia and the UAE continues to mature and evolve,” Venty Mulani, Data Specialist – Sustainable Fixed Income, Bloomberg, said.

GCC IPO markets were shaped by significant geopolitical shifts in the first half of 2025, with proceeds declining 6% to $3.4 billion from the previous year’s $3.6 billion raised, according to Kuwaiti research firm Markaz.

In a year impacted by economic uncertainty, oil price volatility and US tariffs threatening to ignite a global trade war, the GCC still managed to outpace the previous year in terms of offerings with 24 listings, compared to the 23 recorded in H1 2024.

According to Markaz, Saudi Arabia still took the top spot, raising $2.86 billion from IPOs in the first half of the year, through 22 offerings, a notable rise from the $2.1 billion raised in 2024, across 19 offerings.

The kingdom’s figure constituted to 85% of the total GCC IPO proceeds raised during the year, representing a 36% increase in IPO value compared to H1 2024.

The most notable decline was reported by the UAE, which raised $163 million in 2025, dropping 88% from the $1.32 billion raised from IPOs in H1 2024. In 2024, the UAE’s offerings constituted 37% of total GCC IPO proceeds, across three offerings.

Markaz reported Alpha Data’s IPO as the only one for the year, which did not include Dubai Holding’s $584 million residential real estate investment trust, which surged more than 13% on its trading debut on May 28.

Elsewhere, Oman’s Asyad Shipping Company IPO was reported as one of the biggest trading debuts for the sultanate during the first half of the year, raising $333 million. The March 12 listing also achieved the highest gain at 835% by the end of H1 2025, according to Markaz.

Saudi Arabia’s Umm Al Qura for Development and Construction Company followed recording a gain of 51% during H1 2025.

Flynas the largest IPO on Tadawul and the region during H1 2025 witnessed a 3.4% drop in the first day performance but ended the period recording a 0.2% drop compared to its offer price.

Companies in the materials sector witnessed negative returns compared to their offer price, with Saudi’s marble producer Hedab Alkhaleej Trading Co. witnessing a decrease of 30% in its share price during H1 2025, while the Nomu-listed Dkhoun National Trading Company decreased by 27% and Service Equipment Co. decreased by 26%.

According to Markaz data, at the end of H1 2025, only 10 out of the 24 IPOs had shown positive return compared to their offer price, while Kuwait, Qatar, and Bahrain saw no IPOs during this period.

GCC IPO pipeline

Markaz reports Saudi is expected to continue its dominance in the IPO market with strong activity across multiple sectors. Upcoming IPOs include Sports Club Co., AlRamz Real Estate Company, National Unified Procurement Company, Tabby on the Main Market, along with Riyad Capital.

The UAE expects to witness activity in the industrials and technology sectors, according to Markaz, with Etihad Airways and Amanat Holding Education platform expected before 2026 ends.

Kuwait is set for pivotal capital market transformation as part of its efforts to boost efficiency and woo big investment.

The move is aimed at reshaping the regulatory and operational infrastructure of the market, thus paving the way for the introduction of new instruments and investment products.

Reaffirming its commitment to building a more efficient, attractive, and globally competitive market that meets investor ambitions and aligns with international best practices, the Kuwaiti capital market apparatus has launched part two of the third phase of its comprehensive market development programme.

This phase included a series of core initiatives aimed at strengthening the operational and regulatory infrastructure as well as expanding the range of products and services in the Kuwaiti capital market.

Led by the Capital Markets Authority (CMA) and in collaboration with the Central Bank of Kuwait, local banks, investment firms and brokerage companies, Boursa Kuwait and the Kuwait Clearing Company (KCC) delivered a variety of transformative products, services and infrastructure enhancements, including the introduction of the Central Counterparty (CCP) framework, which reduces risks and provides guarantees to advance clearing and settlement processes in line with international standards.

Among the other enhancements are cash settlements through local banks and the Central Bank of Kuwait’s KASSIP system; the upgrade of brokerage firms’ operating models to ‘Qualified Broker’ status, marking a significant step forward in market structure; and the introduction of sub-account numbers under omnibus accounts, which will strengthen transparency and oversight.

In addition, the technical environment and IT infrastructure have been fully prepared and upgraded, with comprehensive testing conducted with all relevant parties in preparation for the listing and trading of Exchange-Traded Funds (ETFs) and fixed-income instruments, including bonds and sukuk. Legislative updates for these products are expected to be introduced later.

This milestone represents one of the most significant transformations in the market’s history since the privatization of Kuwait’s stock exchange. It aims to reshape the regulatory and operational infrastructure of the market, paving the way for the introduction of new instruments and investment products that will deepen market liquidity, enhance its breadth and reinforce its role as a strategic driver of national economic growth.

On the key achievement, Boursa Kuwait Chairman Bader Nasser Al Kharafi said these developments represent a pivotal milestone in the continued advancement of Kuwait’s capital market, thus reinforcing its position and competitiveness on both regional and international levels.

He highlighted that this achievement also reflects Boursa Kuwait’s steadfast commitment to supporting the state’s ambitious vision of establishing Kuwait as a leading regional financial centre that attracts investment, while working in close partnership with all stakeholders to implement a comprehensive strategic roadmap that accelerates market development and enhances its contribution to national economic growth.

“We greatly value the remarkable efforts that have driven the various phases of the Market Development Program for Kuwait’s capital market, a reflection of the power of constructive cooperation between the public and private sectors, which stands as a national model for realizing economic objectives and development ambitions rooted in innovation and professionalism,” stated Al Kharafi.

“This collaboration has played a vital role in advancing market infrastructure and introducing sophisticated products and services that promote a more transparent and dynamic investment environment. These efforts are essential to attracting capital, generating added value for the national economy, and supporting the diversification of income sources,” he added.

Boursa Kuwait said it led the efforts to prepare the market’s infrastructure for the launch of this latest phase, which represents a significant operational milestone for the bourse and the capital market apparatus.

The exchange was instrumental in implementing the technical framework in MD 3.2, as it continued upgrading the trading system, which will support the introduction of new products, strengthen market integration, and lay the foundation for future offerings such as derivatives.

The upgrades also highlight the market’s readiness to broaden its range of investment instruments and align its regulatory framework with world-class standards, sauid its top official.

“The launch of this phase reflects our unwavering commitment to developing an advanced, efficient trading environment that meets the highest international standards,” remarked its CEO Mohammed Saud Al Osaimi.

The UAE’s ADNOC Gas Plc has entered into a three-year agreement to supply liquefied natural gas (LNG) to Europe for a total value of 1.5 billion dirhams ($400 million).

The agreement with Germany’s SEFE Securing Energy for Europe is for the delivery of 0.7 million tonnes of LNG with deliveries commencing this year.

The gas will be supplied from ADNOC Gas’ Das Island liquefaction facility, the Abu Dhabi Securities Exchange-listed company said.

This new medium-term LNG contract builds on the long-term supply agreement with ADNOC that SEFE signed last year.

Saudi Arabia’s non-oil trade surplus with other Gulf Cooperation Council (GCC) states recorded an annual growth of 203.2 percent during April 2025.

This figure posted an increase of more than SR2 billion, reaching approximately SR3,511 million, compared to SR1,158 million in the same month last year, according to the preliminary data from the International Trade Bulletin for April 2025, issued by the General Authority for Statistics (GASTAT).

The report showed that the total volume of non-oil trade, including re-exports, between the Kingdom and the GCC countries amounted to approximately SR18,028 million, recording an annual growth of 41.3 percent, an increase of SR5,271 million, compared to SR12,757 million in April 2024.

Non-oil commodity exports, including re-exports, increased by 55 percent, reaching SR10,770 million, compared to SR6,958 million in April last year, an increase of more than SR3,812 million. Non-oil national commodity exports amounted to approximately SR3,031 million, compared to SR2,675 million during the same period in 2024, achieving an annual growth of 13.3 percent, an increase of SR356 million.

The value of re-exports also jumped by 81 percent, reaching SR7,738 million, compared to SR4,282 million in April 2024, a difference of SR3,456 million.

As for imports from Gulf countries, their value reached SR7,258 million, compared to SR5,799 million in April last year, achieving an annual growth of 25.2 percent, with an increase of SR1,459 million.

The data showed that the United Arab Emirates ranked first in terms of the volume of non-oil trade exchange with the Kingdom, with a value of SR13,533 million, representing approximately 75.1 percent of the total. Bahrain came in second place with a value of SR1,798 million (10 percent), followed by Oman with a value of SR1,454 million (8.1percent), while Kuwait in the fourth place with SR819.9 million (4.5 percent), and Qatar comes last with a value of SR422.1 million (2.3 percent).

Investment banking fees in the MENA region dipped 2% year-on-year in the first half of 2025, according to a new LSEG Deals Intelligence report, during a period that saw elevated geopolitical tensions, oil price volatility and fears of a global trade war.

Equity capital markets were the most impacted, with underwriting fees declining 18% to $169.9 million, marking a two-year low, according to LSEG’s ‘MENA Investment Banking Review H1 2025’ data

An estimated $773.7 million in investment banking fees were generated in MENA over the period, down from $790.28 million in H1 2024, with HSBC Holdings taking the top spot with $64 million in H1 fees or a 6% year-on-year increase.

JP Morgan took second place, with $56 million in banking fees, signifying a 65% year-on-year increase, followed by Citi coming in third, generating $50.8 million in fees and a 55% increase over H1 2024.

Rise in issuance

The LSEG report also revealed a 20% rise in debt capital markets’ underwriting fees to $278.9 million in the first half of 2025, hitting an all-time high.

The MENA region saw a record surge in bond issuances, totalling $86.8 billion during the first half of 2025, and indicating a 17% rise in value over last year, besting all previous first half tallies.

Advisory fees earned from completed mergers and acquisitions (M&A) transactions totalled $191 million, 52% more than the value registered last year at this time and the highest first-half total since 2022, LSEG data revealed, which was buoyed by robust dealmaking in MENA, reaching $115.5 billion in value in the first half of 2025 or a 149% increase compared to the same period last year.

The largest completed deal in the region involved Scopely, a US-based firm backed by Saudi Arabia’s Public Investment Fund, which signed a deal worth $3.5 billion to acquire the video game division of Niantic Labs.

In the region, Saudi edged out the UAE once again regionally, accounting for 41% of all MENA fees generated during the first half of 2025, followed by the UAE at 35% and Qatar at 7%.

According to LSEG, syndicated lending fees declined 40% compared to year ago levels to US$133.9 million, hitting a five-year low.

LSEG Investment Banking fees are imputed for all deals without publicly disclosed fee information.