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Saudi Minister of Commerce Meets with British Counterpart to Strengthen Trade Ties

The Saudi and British delegations meet in Riyadh. (SPA)
The Saudi and British delegations meet in Riyadh. (SPA)
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Saudi Minister of Commerce Meets with British Counterpart to Strengthen Trade Ties

The Saudi and British delegations meet in Riyadh. (SPA)
The Saudi and British delegations meet in Riyadh. (SPA)

Saudi Minister of Commerce and Chairman of the Economic and Social Committee of the Saudi-British Strategic Partnership Council Dr. Majid Al-Qasabi held talks in Riyadh on Monday with British Secretary of State for Business and Trade Jonathan Reynolds and his delegation.

The meeting reviewed Saudi Arabia's Vision 2030, as well as economic and development reforms. Discussions focused on boosting economic partnerships in priority sectors, encouraging British companies to expand their operations in Saudi Arabia, and promoting the growth of startups in research and innovation-driven sectors.

This marks Reynolds' first official foreign visit since assuming office in July, reflecting ongoing efforts to strengthen economic ties between Saudi Arabia and Britain.

The goal is to boost mutual trade and investment across several promising sectors, aligning with the vision of the Saudi-British Strategic Partnership Council, chaired by Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, and UK Prime Minister Keir Starmer.

Al-Qasabi highlighted the progress of 79 initiatives across 13 economic sectors to strengthen the Saudi-British partnership. He noted that bilateral trade between the two countries grew by more than 30% from 2018 to 2023, reaching $103 billion. Currently, 1,139 British investors operate in Saudi Arabia, benefiting from recent economic and business reforms.

Riyadh previously hosted the GREAT Futures Initiative Conference in May, a key event under the Saudi-British Strategic Partnership Council. The conference attracted around 450 British business leaders and facilitated over 20 bilateral ministerial meetings, resulting in the signing of 13 agreements.

Following the meeting, Reynolds was introduced to the Saudi Center for Economic Business, where he learned about the services provided to facilitate business operations in the Kingdom.

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Business

Turkish Shares Rise After Iran Ceasefire Deal, Lira Set for Rare Daily Gain

10 July 2020, Türkiye, Istanbul: People stand behind a Turkish national flag in front of Hagia Sophia in Istanbul. (dpa)
10 July 2020, Türkiye, Istanbul: People stand behind a Turkish national flag in front of Hagia Sophia in Istanbul. (dpa)
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Turkish Shares Rise After Iran Ceasefire Deal, Lira Set for Rare Daily Gain

10 July 2020, Türkiye, Istanbul: People stand behind a Turkish national flag in front of Hagia Sophia in Istanbul. (dpa)
10 July 2020, Türkiye, Istanbul: People stand behind a Turkish national flag in front of Hagia Sophia in Istanbul. (dpa)

Banking and ‌airline stocks led a more than 4% rise in Turkish shares and the lira was on track for a rare daily gain on Wednesday, as the two-week Middle East ceasefire sparked a relief rally across global markets.

At 0823 GMT, Türkiye's blue-chip BIST 100 index was up 4.3%, while the banking index rose 8.8%. Shares in airline ‌carriers Turkish ‌Airlines and Pegasus climbed more than ‌6% ⁠each.

The United States ⁠and Iran have agreed to a two-week ceasefire and Pakistan Prime Minister Shehbaz Sharif said in a post on X that he had invited Iranian and US delegations to meet in Islamabad on Friday.

The ⁠lira traded at 44.5400 against ‌the dollar, strengthening from ‌Tuesday's close of 44.6065.

The currency had lost about ‌1.5% in value since the US-Israeli strikes ‌on Iran began at the end of February. With a year-to-date loss of 3.6% and inflation reaching to 10% in the first three ‌months of the year, the lira has gained in real terms.

Before the ⁠two-week ⁠ceasefire agreement, economists had been expecting the central bank to reflect a cumulative 300 basis points of tightening delivered via liquidity measures in the main policy rate, which stands at 37%.

Markets are now watching whether the two-week ceasefire evolves into a more permanent arrangement, which could reshape expectations for policy tightening at the central bank's next monetary policy committee meeting on April 22.

Business

Gulf Markets Jump on US-Iran Ceasefire Agreement

A man follows the stock market at the Dubai Financial Market in Dubai (EPA)
A man follows the stock market at the Dubai Financial Market in Dubai (EPA)
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Gulf Markets Jump on US-Iran Ceasefire Agreement

A man follows the stock market at the Dubai Financial Market in Dubai (EPA)
A man follows the stock market at the Dubai Financial Market in Dubai (EPA)

Stock markets in the Gulf region jumped on Wednesday in line with global equities after US President Donald Trump agreed to a two-week ceasefire with Iran on Tuesday.

Trump said the last-minute deal was subject to Iran's agreement to pause its blockade of oil and gas supplies through the Strait of Hormuz, which before the war typically handled about one-fifth of global oil and liquefied natural gas shipments.

Iranian Foreign Minister Abbas Araqchi said Tehran would cease counter-attacks and provide safe passage through the waterway if attacks against it stopped.

Pakistani Prime Minister Shehbaz Sharif ⁠said he had ⁠invited Iranian and US delegations to meet in Islamabad on Friday.

Saudi Arabia's benchmark index opened 1.4% higher, lifted by gains in banking and energy stocks.

Oil giant Saudi Aramco gained 2.1%, while largest lender Al Rajhi Bank added 2.4%.

Dubai's main market spiked as much as 8.5%, its highest intraday gain in more than 11 years, with the heavyweight real estate and financial sectors outperforming.

At 0730 GMT the Dubai index was trading 6.4% higher, led by a 9.8% jump in blue-chip developer Emaar Properties and an 11.3% rise in top lender Emirates NBD ⁠Bank.

Abu Dhabi's benchmark index climbed as much as 4.9% in early trade, its biggest jump in six years, boosted by gains in the financial, real estate, logistics and energy sectors.

At 0730 GMT the Abu Dhabi index was up 3.2% with the largest lender, First Abu Dhabi Bank, rising 8.3% and real estate giant Aldar Properties jumping 8.8%.

Energy firm Adnoc Gas gained 3.8%, while Abu Dhabi Ports Company advanced 9.8%.

In Qatar, the index jumped 3.4%, as all its constituents advanced, led by energy shares.

Petrochemical maker Industries Qatar jumped 6.2% and Qatar Gas Transport surged 8%, the top gainer.

The Gulf's biggest lender, Qatar National Bank, climbed 3.7%.

Business

Gulf Banks Weather Geopolitical Tensions with Strong Capital Buffers

A Saudi money changer displays Saudi Riyal banknotes at a currency exchange shop in Riyadh, Saudi Arabia July 27, 2017. (Reuters)
A Saudi money changer displays Saudi Riyal banknotes at a currency exchange shop in Riyadh, Saudi Arabia July 27, 2017. (Reuters)
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Gulf Banks Weather Geopolitical Tensions with Strong Capital Buffers

A Saudi money changer displays Saudi Riyal banknotes at a currency exchange shop in Riyadh, Saudi Arabia July 27, 2017. (Reuters)
A Saudi money changer displays Saudi Riyal banknotes at a currency exchange shop in Riyadh, Saudi Arabia July 27, 2017. (Reuters)

Gulf banks are holding up well despite rising geopolitical tensions in the Middle East, underpinned by solid financial positions and early regulatory action, though the full impact on the sector has yet to emerge.

Mohamed Damak, managing director at S&P Global Ratings, told Asharq Al-Awsat there have been no significant capital outflows from the region’s banks so far. Any deterioration in asset quality, he said, would take time to show up in financial results.

A recent S&P Global Ratings report reached similar conclusions, noting that operations remain stable and asset quality indicators have yet to weaken, although pressures could build in the months ahead.

The agency’s baseline scenario assumes disruptions will persist in parts of the region, even if the most acute phase subsides within weeks.

Supply chain bottlenecks, port congestion and delays in insurance services could linger, while security risks along shipping routes may weigh on trade and keep inflation elevated.

That, in turn, could affect sectors such as transport, tourism, real estate and retail — with knock-on effects for banks’ asset quality and growth.

Still, Damak said regulatory easing measures introduced by some authorities, combined with banks’ strong fundamentals, should help cushion part of the impact.

He pointed to robust balance sheets across the region: average Tier 1 capital stands at about 17.1 percent, non-performing loans at roughly 2.5 percent, and provisioning coverage near 158.7 percent among the 45 largest banks.

Liquidity levels also remain comfortable, giving banks room to absorb shocks, even if funding conditions tighten or certain sectors come under strain.

Authorities across the Gulf have moved quickly to shore up financial stability, broadly echoing measures seen in Europe, the United States and parts of East Asia.

Qatar’s central bank has introduced unlimited repo facilities in riyals, alongside overnight and three-month funding options, to support liquidity management and borrowers.

In Kuwait, the central bank eased liquidity and capital requirements, including the liquidity coverage ratio and net stable funding ratio, while raising lending ceilings and funding gap limits to support credit growth.

In the United Arab Emirates, banks have drawn on emergency liquidity facilities, borrowing against a range of collateral as part of broader efforts to sustain lending and liquidity in the system.

At the same time, banks have activated contingency plans, shifting to remote operations, scaling back branch networks and relying on backup data centers to reduce operational risks.

Uncertainty continues to dominate the outlook. But with strong capital, ample liquidity and regulatory support, Gulf banks appear well placed to withstand the current turbulence — even if a prolonged disruption could test the sector more severely.