Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn
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Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

Assets of Saudi Public, Private Investment Funds Amount to $86.1 Bn

The value of public and private assets of investment funds in Saudi Arabia registered a new leap during Q2 2019, amounting to SAR323 billion ($86.1 billion), compared to SAR310 billion ($82.6 billion) in Q1 of the same year.

According to Saudi Capital Markets Authority (CMA), the value of public and private funds’ assets jumped by 4.1 percent in the Q2 2019 while the value of the private investment funds’ assets grew by 3.5 percent, and the value of public fund assets grew by 5.3 percent.

The value of the assets of private investment funds amounted to SAR196.9 billion ($52.5 billion) at the end of Q2 2019 compared with SAR190.1 billion ($50.6 billion dollars) in the first quarter.

Meanwhile, the value of assets of public investment funds amounted to SAR126.1 billion ($33.6 billion) by the end of Q2 2019 compared with SAR119.7 billion ($31.9 billion) in Q1 2019.

According to the CMA, the investment fund includes a set of securities that are selected according to specific criteria that meet the objectives of the investment funds, including the public and special funds.

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

In this context, foreign investments by non-founders in the Saudi stock market rose to 5.1 percent of the total market last week compared to 5.03 percent at the end of the previous week.

This rise is due to net purchases amounting to SAR712.7 million ($190 million) made last week.

Therefore, non-founder foreign investors' ownership in the Saudi stock market has continued to record all-time highs. This ownership includes swap agreements, eligible and residing investors and excludes the founders’ strategic shares.



Oil Retreats on US Tariff Uncertainty and OPEC+ Supplies

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 Retreats on US Tariff Uncertainty and OPEC+ Supplies

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 slipped on Thursday as the possibility of US tariffs being reinstated raised demand concerns ahead of an expected supply boost by major producers.

Brent crude futures fell 58 cents, or 0.8%, to $68.53 a barrel by 0942 GMT. US West Texas Intermediate crude declined 57 cents, or 0.9%, to $66.88.

Both contracts had hit one-week highs on Wednesday as Iran suspended cooperation with the UN nuclear watchdog, raising concerns the lingering dispute over its nuclear program could again devolve into armed conflict.

A preliminary trade deal between the US and Vietnam also boosted prices.

Tariff uncertainty looms large, however. The 90-day pause on the implementation of higher US tariffs ends on July 9, with several large trading partners yet to wrap up trade deals, including the European Union and Japan.

The OPEC+ group of oil producers, meanwhile, is expected to agree to raise output by 411,000 barrels per day (bpd) at its policy meeting this weekend. Adding to negative sentiment, a private-sector survey showed that service activity in China - the world's biggest oil importer - expanded at its slowest pace in nine months in June as demand weakened and new export orders declined. A surprise build in US crude inventories also highlighted demand concerns in the world's biggest crude consumer.

The US Energy Information Administration said on Wednesday that domestic crude inventories rose by 3.8 million barrels to 419 million barrels last week. Analysts in a Reuters poll had expected a drawdown of 1.8 million barrels.

The market will be watching for the US monthly employment report on Thursday, which is likely to shape expectations over the depth and timing of interest rate cuts by the Federal Reserve in the second half of the year, analysts said.

Lower interest rates could spur economic activity that would boost oil demand.