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Foreign Investors Share in Saudi Market Reaches 5%

Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia. (Reuters file photo)
Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia. (Reuters file photo)
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Foreign Investors Share in Saudi Market Reaches 5%

Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia. (Reuters file photo)
Investors talk with each other as they monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia. (Reuters file photo)

The share of foreign investors in the Saudi stock market, by the end of trading on July 5, reached 5 percent, with a total ownership of $25.9 billion.

In this regard, the Saudi Stock Exchange (Tadawul) announced that net foreign purchases of foreign direct investment last week amounted to $43.1 million dollars.

Increased foreign investor ownership in the stock market reflects the appeal of the Saudi financial market and the high level of confidence its economy enjoys.

On Sunday, the Saudi index gained 0.6 percent, or 8,223 points, a rise of 45 points, amid trading amounting to about $733.3 million.

Maaden, National Commercial Bank, Samba, Jarir and Kayan Saudi Arabia stock closed their trading on Sunday at a rate between 1 and 4 percent.

Traders in the stock market are expecting the announcement of the financial results for listed companies in the second quarter of this year. Meanwhile, some reports of institutions of financial expertise showed an expected growth in the profits of banks, petrochemical companies and some shares of telecoms and cement companies.

These developments come as the Saudi economy, the largest in the Middle East, achieved positive growth in the first quarter of 2018, at 1.2 percent, in actual translation of the feasibility of economic reforms that aim to diversify the economy and reduce oil dependency.

Saudi non-oil gross domestic product (GDP) achieved a more positive growth rate during the first quarter of 2018, at 1.6 percent, while the growth rate of the non-oil sector was about 2.7 percent during the same period, according to the General Authority for Statistics (GaStats).

GDP saw a 1.2 percent rise in the three months to the end of March, compared with the same period last year. This improvement follows four consecutive quarters of falling GDP, or recession, the Authority said

The GDP of the oil sector rose 0.6 percent to $72.8 billion during the first quarter of the year compared to $72.4 billion during the same period last year.

Meanwhile, the International Monetary Fund (IMF) recently praised the positive economic reforms taken by Saudi Arabia, stressing that the implementation of some initiatives aimed at increasing non-oil revenues is a remarkable achievement. This comes at a time when the quarterly Saudi budget report revealed a significant increase in non-oil revenues during the first quarter of 2018.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."