Aramco Shares Influence Saudi Stock Market Index

A view of the board at the Stock Exchange Market (Tadawul) bourse in Riyadh. (Photo by FAYEZ NURELDINE / AFP)
A view of the board at the Stock Exchange Market (Tadawul) bourse in Riyadh. (Photo by FAYEZ NURELDINE / AFP)
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Aramco Shares Influence Saudi Stock Market Index

A view of the board at the Stock Exchange Market (Tadawul) bourse in Riyadh. (Photo by FAYEZ NURELDINE / AFP)
A view of the board at the Stock Exchange Market (Tadawul) bourse in Riyadh. (Photo by FAYEZ NURELDINE / AFP)

The shares of Saudi Aramco started influencing the performance of the Saudi stock market index on Wednesday, with trades that are most active in terms of both value and quantity.
 
This comes although the oil giant’s shares fell almost 3 percent on Wednesday as a natural result of investors pocketing profits on the day it was included in the MSCI Emerging Markets Index.
 
Aramco’s share managed - despite the profit-taking operations - to consolidate its valuation, closing at 36.6 riyals ($9.76) on Wednesday. The shares closed Tuesday trading at 37.75 riyals ($10), down 0.25 riyals or 0.66 percent on the day, but the stock remains 18 percent higher than the IPO price of 32 riyals.
 
The Saudi stock market index ended its trading on Wednesday, with an increase of 0.7 percent, to close at 8253 points, 56 points higher, continuing its rise for the fourth session, and recording the highest closing in about 4 months, amid trades totaling about 6.6 billion riyals ($1.76 billion).
 
With the closure of trading on Wednesday, the share of SABIC - one of the largest petrochemical companies in the world - rose by more than one percent, to end its trading at 91.5 riyals ($24.4). This was seen as a reaction to the company’s board of directors recommendation to distribute cash dividends to shareholders by 2.2 riyals for the second half of 2019.
 
Earlier this month, Tadawul updated its index methodology to develop and manage its equity indices in a more balanced way.

The measures include a 15 percent threshold to reduce the dominance of larger companies on the index performance so that weights of all index constituents remain under a set capping threshold, Tadawul announced in a statement.
 
The exchange is also applying a new rule for “Fast Entry”, in which shares of significantly large IPOs are included in the Tadawul All Share Index at the close of their fifth trading day.



FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.