Saudi Arabia: Public, Private Investment Funds Increased 15% in 2018

Saudi Arabia: Public, Private Investment Funds Increased 15% in 2018
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Saudi Arabia: Public, Private Investment Funds Increased 15% in 2018

Saudi Arabia: Public, Private Investment Funds Increased 15% in 2018

The value of public and private investment funds in Saudi Arabia increased 15 percent during the past yearو compared to 2017, with a total asset value of $77.3 billion.

The Capital Market Authority (CMA) said in a statement on the Saudi stock market news website that the investment fund includes a set of securities selected according to specific criteria that meet the investment fund's objectives, including public and private funds.

The profits of investment funds are usually capital gains, resulting from the improvement or change in the prices of securities invested in them, in addition to dividend profits, if any.

The 15 percent increase, according to the report, is due to a rise in the value of private fund assets reaching $47.5 billion which accounts for 61 percent of total asset values, compared to 2017.

Investment in the markets and investment funds in the public fund assets accounted for the highest value, 74.3 percent of total asset values of public funds. Investment in private funds, stock funds and real estate funds constituted the most important investment types representing 91.3 percent of the total asset values of private investment funds.

Available data showed a drop in the number of investment funds by 6 percent.

In 2018, the number of public and private investment funds in Saudi Arabia reached 542, of which 249 were public and 293 were private. The total number of public and private investment funds in 2017 was about 577 funds.

Saudi Arabia's public investment fund assets grew 1.48 percent in Q4 of 2018, reaching $29.83 billion, compared to $29.39 billion in the same period last year.

Saudi private funds rose 25.8 percent in the Q4 to $47.54 billion, compared with $37.77 billion in the same quarter in 2017.



Gold Gains as Dollar Slips on Trump Tariff Uncertainty

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Gains as Dollar Slips on Trump Tariff Uncertainty

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices rose on Tuesday as the US dollar eased due to uncertainty around President-elect Donald Trump's tariff plans, with further support coming from top consumer China's central bank adding to its gold reserves for a second straight month.

Spot gold was up 0.5% at $2,648.75 per ounce, as of 1218 GMT. US gold futures also rose 0.5% to $2,660.20.

"The main factor is the softening of the US dollar over the last two sessions, which has provided some relief for the precious metal," said Ricardo Evangelista, senior analyst at ActivTrades.

The dollar index eased towards a one-week low versus major peers as traders considered whether President-elect Donald Trump's tariffs would be less aggressive than promised following a report in the Washington Post, Reuters reported.

Trump however denied the report, deepening uncertainty about future US trade policies.

A stronger dollar makes bullion more expensive for other currency holders.

Traders are setting their sights on Friday's US jobs report for Fed policy clues, along with job openings data due later in the day, ADP employment and the minutes from the Fed's December meeting on Wednesday.

Fed Governor Lisa Cook on Monday said that the Fed can be cautious about any further rate cuts given a solid economy and inflation proving stickier than previously expected.

Bullion is considered a hedge against inflation, but high rates reduce the non-yielding asset's appeal.

Meanwhile, China's gold reserves stood at 73.29 million fine troy ounces at the end of December as the central bank kept buying gold for a second straight month, official data showed.

"By re-entering the market in December, Beijing signaled that its gold acquisition program remains active—a development likely to lend continued support to the precious metal's price," Evangelista added.

Gold prices gained about 27% in 2024, mainly boosted by robust central bank purchases and Fed rate cuts.

Spot silver gained 0.8% to $30.19 per ounce, platinum added 1.2% to $944.39 and palladium rose 0.9% to $928.38.