Gulf Markets Rebound with Federal Reserve Allaying Investor Fears

The Tadawul All Share Index (TASI) rose 2.1 percent. (Reuters)
The Tadawul All Share Index (TASI) rose 2.1 percent. (Reuters)
TT

Gulf Markets Rebound with Federal Reserve Allaying Investor Fears

The Tadawul All Share Index (TASI) rose 2.1 percent. (Reuters)
The Tadawul All Share Index (TASI) rose 2.1 percent. (Reuters)

Most Gulf stock markets advanced on Tuesday after Federal Reserve officials made comments easing investor jitters, following a global sell-off on fears of a possible recession in the United States.

San Francisco Federal Reserve Bank President Mary Daly said on Monday that it was too early to determine whether the July jobs report indicated a real slowdown or weakness, but emphasized that it was “critically important” for the central bank to prevent the labor market from sliding into recession.

Market expectations remain intact that the Fed will cut interest rate by 50 basis points at its September meeting, as futures indicate a 71 percent chance of this major adjustment.

The market anticipates approximately 100 basis points of easing this year, with a similar expectation for 2025.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Federal Reserve decisions, with most regional currencies linked to the dollar. The standard Saudi stock market index (TASI) rose by 2.1 percent, with the shares of the aluminum products manufacturing company Al-Tayseer Group rising by 7.1 percent.

Saudi Aramco rose by 2.4 percent, after it announced a net profit in the second quarter amounting to SAR109.01 billion ($29.04 billion), exceeding the company’s average estimate of $27.7 billion.

Dubai’s main market index jumped 2.4 percent, recovering some of its losses from Monday when it fell more than 4 percent. The shares of the leading real estate development company, Emaar Properties, advanced 4.9 percent. In Abu Dhabi, the index rose by 1.4 percent.

The Qatari benchmark index fell by 0.5 percent, with the largest bank in the Gulf, Qatar National Bank, losing 1.4 percent.



Saudi Arabia’s SABIC to Build Engineering Thermoplastics Compounding Plant in China

Saudi Arabia’s SABIC signs a potential investment agreement with the Fujian government (SABIC website)
Saudi Arabia’s SABIC signs a potential investment agreement with the Fujian government (SABIC website)
TT

Saudi Arabia’s SABIC to Build Engineering Thermoplastics Compounding Plant in China

Saudi Arabia’s SABIC signs a potential investment agreement with the Fujian government (SABIC website)
Saudi Arabia’s SABIC signs a potential investment agreement with the Fujian government (SABIC website)

Saudi Arabia’s SABIC, a global leader in diversified chemicals, signed a potential investment agreement with the Fujian government to build an engineering thermoplastics compounding plant in China’s Fujian Province.

“The new investment further underscores SABIC’s efforts to meet the unique requirements for differentiated innovative solutions from its local customers in China while strengthening its roots in the Chinese market and its contributions to the high-quality and sustainable development of the chemical industry,” the company said in a statement on Tuesday.

“This investment agreement marks another significant milestone for SABIC’s growth in China and reflects our continued confidence in investing in the country,” SABIC CEO Abdulrahman Al-Fageeh said.

“By creating synergy with upstream and downstream partners, the project aims to strengthen our supply capability in compounding products and serve this important strategic market with innovative and consistently high-quality material solutions,” he added.

The planned compounding plant will be located in the Gulei Port Economic Development Zone, Zhangzhou, Fujian.

It will primarily produce pelletized LEXAN™ Polycarbonate (PC) and CYCOLOY™ PC/ABS blends for use in advanced materials tailored to the needs of industries including electrical and consumer electronics, automotive, and emerging sectors such as solar energy, electrification, and 5G.

In addition to the planned engineering thermoplastics compounding plant, SABIC operates a SABIC Technology Center in Shanghai and three compounding plants in Guangzhou, Shanghai and Chongqing, alongside operations in 17 cities across Greater China.