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Saudi Shares to Achieve Strong Annual Gains

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.
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Saudi Shares to Achieve Strong Annual Gains

A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.
A Saudi trader observes the stock market on monitors at Falcom stock exchange agency in Riyadh, Saudi Arabia February 7, 2018.

The Saudi stock exchange closed 2018 trading amid anticipated gains of more than 8 percent compared to its level at the beginning of the year. Compared to other global markets, the Saudi market was among the top performers in 2018.

The Saudi stock market index is expected to close above 7,800 points at the end of 2018. The fiscal results of listed companies are anticipated to be better in 2018 than in 2017.

Meanwhile, firms will soon announce their financial results for the final quarter of 2018.

During the first nine months of 2018, the companies achieved profits of SR88.8 billion (USD23.7 billion).

The value of public and private investment funds increased 4 percent during the third quarter of 2018 compared to the previous one, with a total assets value of USD75.6 billion.

The investment fund includes a portfolio of securities selected based on specific criteria that meet the fund's objectives, according to the Saudi Capital Market Authority (CMA).

The profits of mutual funds are usually capital gains, meaning, profits that result following an improvement or change in the prices of invested securities, in addition to dividend profits, if any, for securities.

The increase in fund assets is due to a 9 percent increase in the value of private fund assets compared to Q2 2018 and reaching USD44.1 billion.

About 330,800 members subscribed to the public and private investment fund this year, up from 315,100 in Q2 2018. This increase coincided with a 5 percent increase in the number of public investment funds to reach about 326,900 subscribers.

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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.