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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.

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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
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Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.