Downgrading of the Saudi credit rating to A+ is unprofessional

Saudi Ministry of Finance has rejected the unprofessional decision of «Standard & Poor's» agency to reduce Saudi Arabia's credit rating to (+ A) with a negative outlook. The ministry confirmed that the Kingdom economy is characterized as it is supported by net assets of more than 100 per cent of GDP, in addition to a large reserve of foreign exchange.

According to the newspaper "Middle East", «Moody's» agency is preparing to issue its credit rating for the Kingdom during these days, amid an initial indicators confirm that the ratings will not be consistent with the rating of «Standard & Poor's», which was based on inaccurate information and numbers collected through Internet sites, and through unofficial sources.

The Saudi Ministry of Finance explained in a statement yesterday, that the decision of «Standard & Poor's» to downgrade the credit rating of the Kingdom was an act of the agency, and was not based on a formal request. It has pointed to the lack of its agreement with the system used in this evaluation which it described as « hasty and unjustified reaction did not assign to the facts."

The ministry said in a statement that "Nothing is more indicative that the assessment is hasty and unjustified, that it downgrade the rating in less than a year from -AA with a positive outlook to  A+ with a negative outlook, based solely on the global oil price changes, without consideration to other positive fundamental factors, which, if taken into account would have emphasized the previous assessment, at least. "

It emphasized that the agency decision was not only hasty but inconsistent substantially with the idea of ​​Classification and its technical fundamentals, which requires that impartial Classification to takes into account all dimensions affecting the creditworthiness of the work, and which confirms the ministry's stance is the big difference between the methodology and results of the rating between other international rankings agencies.

According to newspaper 'AL Ektsadeah", Saudis specialists confirmed that Stand & Poor's credit rating of Kingdom in its last report ignored the fact that the Saudi economy is witnessing economic growth over recent years, in addition to the availability of huge foreign cash reserves.

They pointed out that the Agency did not adopt in its classification accurate information, particularly it is built on estimates of future oil prices which brook change between now and then.

Habibullah Turkestan, Professor of Economics, explained that the downgrade was based on a decline in the Kingdom's oil revenues, stressing that it is not necessary that this be true, he did not rule out political objectives to be behind that, stressing that "the kingdom has monetary policies and financial reserves can benefit from it in the face of any financial crises. "

Ali Al-Naimi: Saudi Arabia is ongoing investments in oil despite price falling

Ali Al-Naimi, Minister of Petroleum and Mineral Resources confirmed that the Kingdom continues to invest in all phases of the oil and gas industry, even with the current decline in prices, in addition to investments in other sources of energy such as solar power.

He explained in a speech during a session related to investing in oil and energy, which came within the agenda of the first Ministerial Meeting for the Ministers of Petroleum and Energy of the Group of Twenty, held in Istanbul during the period from 1 to 2 October: that the world is in need of access to energy in a clean, continuous and available manner at present and for future generations around the world.

The head of Saudi delegation participating in the meeting reported that: the most important factors that help to achieve this goal is the movement of prices which is clearly affecting the current and future investments, particularly in the long term in an important industry like oil.

He said that since the seventies the industry passed through sharp and high fluctuations in prices - up and down - which impact on investments in the oil, energy and continuity of the field, and this volatile situation, is not good neither for producing countries nor consuming countries, and the Group of Twenty can contribute to the stability of the market.

He added that the investment includes all phases of the industry such as: exploration, production, refining, and human competencies in terms of education, training, and rehabilitation; although investment in technology and scientific research are of particular importance, especially in the processes of making petroleum and fossil fuels more environmentally friendly, noting that Investment should include all sources of energy such as solar power and others.

He praised in the end of his speech the importance of investment in science, research and technology in order to make fossil energy sources cleaner and more appropriate to the requirements of the environment, and more happiness and prosperity for future generations.

On the sidelines of the meeting which was opened by His Excellency President Recep Tayyip Erdogan, President of the Turkish Republic, the Minister of Petroleum and Mineral Resources Ali Al-Naimi met with number of ministers of oil and energy, including US Energy Secretary Ernest Moniz, and Minister of Energy Alexander Novak and Indonesia's Minister of Energy Sudirman Said, and discussed during which bilateral relations in the fields of petroleum, and maintain a clean environment, using modern technology, and take advantage of technical progress and scientific research in these areas.

Saudi Arabia exported 1.8 billion barrels of oil with an estimated worth of 382 billion riyals in eight months

Kingdom of Saudi Arabia exported about 1.8 billion barrels of oil during the first eight months period of 2015 , with a value up to about 382 billion riyals, and these price value is less than the price value during the same period last year by 49%.

The total local consumption in the same period reaches approximately 681 million barrels and 27% of total production.

These figures come at a time when the Organization of Petroleum Exporting Countries "OPEC" said that global demand in 2015 will reach the level of 92.7 million barrels per day, which is higher rate of 1.38 million barrels per day than the 2014 level.

Commenting on the kingdom's oil exports, economic advisor specialized in oil and energy sector, Dr. Fahd bin Juma, said to "Riyadh" that the kingdom exported about 1.8 billion barrels of oil during the first eight months of 2015 with a value of 382 billion riyals, and this price value is less than the price value During the same period last year by 49%.

He added that local consumption in the same period amounted to approximately 681 million barrels which is 27% of total production.

He said: the West Texas price fell to 40.21$ during the past few days, as this decline is considered the least in 6.5 years, while Brent for October fell to 46.91$, after US inventories rose to 456.2 million barrels in the ending week in August 14, with about 100 million, which is above the average five-year period level.

Noting in this regard that if the supply does not respond with a low current prices, it is expected that the price of West Texas will back down to the level of 35$.

He attributed succession of decline in global oil prices in the past few days to increasing oil supply, and growing fears of a slowdown in Chinese growth, which some data showed poor performance of the manufacturing industries, as well as continued selling in the Chinese stock markets added to the negative mood, with most of the major global stock markets.

Noting that the continuing decline in oil prices is due to the global markets failure to respond to market factors to narrow the gap between supply and demand at prices above 60$ for a barrel.

Decreasing gold prices redraws map of its market in Saudi Arabia

At a time when «gold» is being traded at its lowest price in nearly five years, the new prices become an important attractive method for Saudi traders to enter it again, this comes after the exit of some of them during the past three years due to the price rise which has reached record areas.

The yellow metal is considered one of the most acquisitic mineral for decorations, but it also is an important haven for investors in the country, but the high prices which approached the barrier of $ 1900 for an ounce during the past few years, making the demand for the yellow metal decrease in the Saudi market.

At the end of the week on Friday, gold continued its losses in the global market, where it has been traded at $ 1082 for an ounce, this came amid renewed losses, which made sales operations more severe in the global markets, prompting analysts of yellow metall, to determine the barrier of $ 1070 as a mission support point.

In this regard, Hussein al-Khalifa, the owner of competent factories, confirmed to «Middle East» yesterday that the demand for buying gold in Saudi Arabia has become more active during these days, and said: « declines of gold prices consistent with social events season in Saudi Arabia such as marriage parties and the like ».

The Caliph confirmed during his speech, that since the summer vacation in Saudi Arabia, and the price of gram of gold stood at 115.5 riyals (30.8 US $) without counting the cost of workmanship wages, pointing out that the workmanship wages ranging from two riyals to 6 riyals (0.53 and 1.6 US $), explaining that it may reaches up to 24 riyals (6.4 US $) depending on the quality of manufacturing.

Regarding silver, the Caliph said: «There was a demand for silver in Saudi Arabia, especially when gram of gold reached above 200 riyals levels (53.3 US $), but today silver price has risen, compared to decreasing of gold prices, and the silver manufacturing wages does not stray too much about the cost of gold manufacturing wages. »

On the other hand, Faisal sword, an investor in the gold sector, tressed that a number of private traders who invest in retail selling, closed many branches of their shops due to high prices, he said: «prices fell by up to 40 per cent, pay some of them to think seriously about a return to more closed branches, especially since demand in Saudi Arabia is witnessing a marked improvement too ».

These developments come at a time when many investors now fear of the continuation of bleeding of gold prices, as the yellow metal would lose «safe haven» feature, as it is called by many.

Specialists spoke to «Middle East» earlier, that what is happening in the global gold market is the result of violent speculation, but they played down the impact of such speculation on sale in the Saudi market movement, especially as the seasonal period for gold sales are approaching, in the date of annual leave when there are alot of occasions, weddings solutions.

Specialists predicted decline in the gold market in the long term, in light of the expectations of the emergence of new competitors such as diamonds and precious stones, as well as the world's inability to dispense with its need for oil and its products, pointing to Saudi Arabia's ability to achieve a balance in production and determine a fair price.

Analysts: Stability of the local market is an evidence of the Saudi financial market strength after collapse of Chinese market

In the wake of the collapse of the Chinese market and the impact of the euro region due to the problem of Greece, and fears of global financial markets from a global economic catastrophe after a painful blow to the second largest economy in the world, the Saudi capital market remains positive with change rate of 2.47%,

 Experts expect that; Saudi financial market stability despite influence of global markets is a sufficient evidence on the local market power; which will make global eyes focus on it to invest in, also they argued at the same time that it is difficult to judge the end of the losses in the Chinese market, which rebounded on Thursday, rising nearly six percent after the Beijing attempts succeed to stop declines that rocked global financial markets Finally, the strongest step yet to support the market was that Chinese Market Authority banned sailing on the shareholders of large stakes owners in listed companies. Separately, the central bank said it would allow banks to extend loans supported by shares.

Initially Talaat Hafez the financial expert and general secretary of the Committee of Information and banking awareness at Arabic banks has affirmed to »Al Youm» that the Chinese economy is one of the largest economies in the world which is growing at 10% annually, as it owns a lot of resources and its foreign investment outside  China reaches up to trillion dollars, which is one of the largest states in the volume of foreign investments, and this reassure the return of the Chinese financial market and it is known that the occurrence of any collapse or a setback or terminal decline in the Chinese financial market will impact on the economy of the world and thus affect the Saudi economy in the financial and banking sectors, indicating the return of the Chinese economy soon and the Chinese government will take procedures for the return of the Chinese market to what it was.

Hafiz said that the Saudi economy is robust economy which has grown in the past year to 3.5% from 5% in previous years, due to the decline in oil prices and he expected that Saudi Arabia's economy will not affected directly due to the decline in the Chinese capital market, it is possible that the Saudi financial market may be affected by the crisis; because of psychological effect not real, because of the lack of Chinese companies in the Saudi capital market affect directly on the local market, with regard to the existence of a large commercial exchanges between the two countries Hafiz stressed that exports and imports won't be affected between Saudi Arabia and China with regard to trade between the two countries.

Hafiz said that the Saudi banking market will not be affected by the crisis; as it adopts in first priority on the employment of capital, deposits and investments inside the country, which exceeded 2 trillion in the second half of this year and the distribution of investment in the trading in banking market in the Saudi market inside the country on the outside account, noting that foreign assets are not great in number compared to the domestic assets in Saudi banks.

According to an analyst at the financial market Mohammed Bin Ali Al-Rajhi: the Chinese market collapse has no link to the Saudi financial market, but the negative consequences will be limited to the Chinese market, stressing that in the event that the sudden descent is associated with negative consequences for Chinese companies, will have an impact on the local market, and in If there is no justification in the Chinese capital market decline, there will not be any damage to the global and local stocks market.

And Al-Rajhi clarified that the financial market will see a coherent tends to rise, and the most likely cause of decreasing stocks value in the previous period was not because of the Greek crisis or a global crisis, as some believe, but before the Greek crisis, as some thought that the entry of foreign investors will create a positive backlash but the fact came unlike forecast which contributed to successive declines in the past period.

New economic boom with the entry of Saudi Arabia to peaceful nuclear use

Under the leadership of the Custodian of the Two Holy Shrines King Salman bin Abdul Aziz, Saudi Arabia is seeking to diversify its sources of energy and lack of dependence on fossil fuels and natural gas only for electric power.

The Saudi government believes in the use of nuclear energy as the perfect solution for electricity generation and water desalination, in this context the Kingdom plans to build about 16 nuclear reactors for peaceful energy at a cost reaches up to 80 billion dollars until the year 2040.

Kingdom use of nuclear energy or solar power to generate electricity will lead in the opinion of many experts to achieve economic booms up to 200 billion riyals annually, of which 150 billion riyals are specified as aid for electricity generation, where figures from the ministries of oil and electricity suggests that the kingdom consumes about two million barrels per day to run the electric power and desalination plants.

Risk in the long run

Ali bin Saleh al-Barrak, former CEO of Saudi Electricity Company, confirms that the dependence on fossil fuels for long periods for power generation includes risks in the long run such as increasing oil consumption which affects the export capabilities of the Kingdom.

He adds that the kingdom electricity consumption reaches at the present time to 60 thousand megawatts and will rise to 100 thousand megawatts by 2040 and this means the need to add 40 thousand megawatts in less than 15 years, it is planned that the nuclear plants to be built to provide 20 percent of the generated electrical energy during this period.

Ali bin Saleh al-Barrak, says that the private sector will have an increasing role in the coming period in the production of electricity, where there is a list of the projects offered by the government to the private sector to invest in, it comes in time in which the private sector currently produces about 15 thousand megawatts of electricity , stressing at the same time, there is no problem in financing these projects but fears come from the non-availability of the mixture of fuel to run power plants.

From the standpoint of the former CEO of Saudi Electricity Company, the Saudi private sector will benefit from future projects to generate electricity by using nuclear power, where this benefit will vary ranging from construction operations, contracting, manufacturing, building and materials even the ability to build and operate nuclear power plants in the future.

Benefits

Kingdom's asylum for a peaceful nuclear energy program in order to generate electricity will bring many advantages for the national economy, increased high-level employment opportunities comes on top of these benefits, besides the establishment of nuclear technology competencies, and the qualification of the Saudi youth to become proficient in the uses of nuclear energy in the next few years.

Benefits to the Saudi economy from the application of the program of nuclear power also include the development of the industry for the future, and the development of atomic engineering and other research fields, such as medicine, agriculture, minerals, and water desalination.

Scientific research

Gains that kingdom can benefit from the adoption of a peaceful nuclear energy program, not just limited to the economic aspect, but extends to the scientific side, where the King Abdullah City for Atomic and Renewable power is preparing a specialized study to form a special nuclear advisory body to responsible for building nuclear power plants in the kingdom.

The King Abdullah City aims from this move, that this body to be the local partner for projects of nuclear power and research in the kingdom, it will become one of the most important resettlement tools of Sciences and Industries of nuclear power, and the biggest goal that it seeks to is that 60 percent of the components of this industry and service contracts to be from the local market.

Big payoff

The economic expert Turki Fadak member of the investment committee at the Riyadh Chamber, sees that the kingdom seek to the use of nuclear energy for electricity, and also use that energy in other uses, such as water desalination, agriculture and health will have a significant impact on the kingdom economy, which will lead to the provision of hundred thousands of barrels of oil that were consumed locally in these uses and that has a great economic feasibility.

Turki Fadak adds that it is well known that water desalination and electricity production costs are too high and therefore, any attempt to use other means of methods such as renewable energy will bring huge economic Saudi economy.

In order to achieve the ambitious Saudi program to enter an era of peaceful use of nuclear energy, the Custodian of the Two Holy Mosques government has signed a number of agreements to build nuclear power plants and Russia comes on top of these countries, where the Crown Prince and Defense Minister Prince Mohammed bin Salman during his recent visit to the Russian capital Moscow, signed a number of agreements to build a number of nuclear reactors for peaceful uses in the forefront of power generation and water desalination.

Kingdom also signed a memorandum of understanding with South Korea on cooperation in the development of nuclear energy and that was on the sidelines of the Korean President's visit to Riyadh in April.

The MOU invite Korean companies to participate in the construction of at least two nuclear reactors of small or medium size in Saudi Arabia.

It is noteworthy that Saudi Arabia covets to acquire nuclear energy of 17 gigawatts by 2040 and about 41 gigawatts of solar energy.

88 billion Saudi riyals is the volume of investment of Saudi Arabia in real estate deals during Rajab and Sha'ban.

Property sales recorded in various cities of Saudi Arabia marked decline during the month of Sha'ban by 34%, compared with Rajab of up to 31 billion riyals, which were distributed to 24935 real estate deals.

According to the monthly data for the real estate index of the Ministry of Justice, the month of Sha'ban record sales of residential real estate worth up to 20.6 billion riyals, which is a lower value by 48% of residential sales in the month of Rajab, besides commercial deals of up to 10.4 billion riyals, which is less than 42% of the commercial value of sales in Rajab.

Specialists explains this low momentum of real estate transactions in Sha'ban compared to Rajab due to the intersection of the summer vacation with the month of Sha'ban, during which the real estate market is witnessing a recession as people interested and working in the real estate sector (especially smallholders) usually stop buying and selling as they travel for tourism.

The head of the Real Estate Committee at the Jeddah Chamber Abdullah Ahmari said: Most of landlords are seeking before the summer break to finish most of their transactions even if the real estate were at lower prices.

Ahmari added that the recession will continue to the end of Ramadan due to concern of most of the owners by worship and the privacy of the holy month. And Ahmari confirms that the recession will eventually lead to decrease bloated real estate prices and will help citizens who cannot afford to own housing.

He pointed out that the citizen is watching eagerly the steps of Ministry of Housing and its continuous advertisements hoping to get housing in one day. And Ahmari wished that recession may lead to convince property owners to take down land prices, which supposedly constitute 30-35% of the cost to build or buy housing and the descent of its prices will greatly reduce the current price of the property (because the prices at the present time reaches to 60% of the value of the property, which is an exaggerated thing) pointing out that lowering prices and make it accessible to the hands of consumers will contribute to solve the housing crisis, which is what State seeks to achieve.

International Monetary Fund advises Saudi Arabia to increase non-oil revenues

Dr. Fawaz Al Alami, the Saudi expert in international trade, said the International Monetary Fund report pointed to Saudi Arabia steps on economic and financial policies that have been finally approved, including the continuing major development projects despite the decline in oil.

Al Alami said in an interview with "Arabia" Channel that: The International Monetary Fund raised its forecast for the growth of the Saudi economy this year which reflects the success of the policy adopted by the Kingdom clearly.

He called that development expenses should keep pace with the urban and population development, the employment of the citizen and raising the value of investments related to the services provided to the Saudis.

With the end of the consultations of the fourth article conducted by the International Monetary Fund to Saudi Arabia, the Fund forecast for the growth of the Saudi economy was raised to 3.5% this year, unchanged from the growth rates achieved last year.

The Fund had predicted growth of the Kingdom's economy by 3% in his latest report about the economies of the Middle East last May.

The reason behind the decision to raise the Fund's growth forecast is due to continued expansion in the Kingdom's policy of spending, despite the revenue decline because of falling oil prices.

According to the Fund, the Kingdom will record a deficit this year, 20 percent of GDP because of increased expenditures and falling revenues.

The Fund noted to the importance of developing a strategy for the fiscal adjust to improve the efficiency of government spending, and to perform comprehensive reforms in the energy use efficiency and its pricing, and to increase non-oil revenues.

The International Monetary Fund experts also praised the opening of the market to foreigners, as well as the steps taken to support the local debt market through the issuance of more bonds and instruments.

About the labor market, the Fund pointed to the need to increase jobs for citizens in the private sector through a continued focus on increasing competitive national employment.

Most Gulf Stock markets rise supported by the oil and the stability of Saudi market

Most Gulf stock markets rose Wednesday following the rise in oil prices, but gains came limited, due to the approach of the month of Ramadan, which usually witnessing a sharp decline in market activity.

The main index of the Saudi market closed almost stable amid variation in the stock at 9543 points. And shares of "Development Bank" and "the Saudi Basic Industries Corporation" (SABIC) decreased by 0.3 percent each, and were the most actively traded in the market.

 In spite of this, "Al Rajhi Bank" increased, which may benefit from the anticipated increase in US interest rates later this year by 1.2 percent, with waiting of investors for a statement of "Federal Reserve Board" (US central bank) later today, after meeting of The Monetary Policy Committee of the Bank. Linking the Saudi riyal to the US dollar means that the Kingdom will follow the footsteps of raising interest rates in the United States, as it does not generate a significant portion of bank deposits in the Saudi interest, therefore, raising interest rates will boost margins of banks' profits, and may also lead to a slowdown in lending growth, what drives investors to buy shares of banks with a high degree of selectivity.

Modest trading volumes over the three days after the opening of the Saudi stock market to foreign direct investment this week show slowdown of foreign to purchase the shares.

 In Dubai, the Dubai market index rose 0.2 percent to 4088 points, and "Dubai parks and resorts" shares record up of about five percent to 1.26 dirhams before trimming its gains to 1.7 percent, and the stock represented about a third of trading value in the market.

"Amlak for Finance" shares decreased by 5.5 percent, and "central" occupied the second place among the most actively traded stock in Dubai, speculators aimed at this share since the resumption of its trading in this month after a hiatus of six years, during which the company restructured its debt.

 General Index of Abu Dhabi Market rose 0.8 percent to 4580 points, with rise of most of the stock. "Etisalat" share increased by 0.9 percent while "First Gulf Bank," increased by 1.7 percent.

Qatar's index rose by 0.1 percent to 11 884 points, with rise of "Qatar Industries" share by one percent. Crude "Brent" rose about a dollar today in light of strong demand from the United States, what positively affect the company's activities in the field of petrochemicals.

The main index of the Egyptian stock exchange closed slightly rise by 0.01 percent to 8557 points. The "International Commercial Bank" share decreased by 0.6 percent to 57.95 Egyptian pounds.

 In the rest of the Gulf indicators, Kuwait's index rose 0.1 percent to 6267 points, while the stock index in the Sultanate of Oman decreased 0.4 percent to 6469 points, while Bahrain's index rose 0.2 percent to 1367 points.

Gulf oil-producing countries would resist efforts to cut production at the next meeting of «OPEC»

It is expected that Gulf oil-producing countries would resist calls to cut production at the meeting of «Organization of Petroleum Exporting Countries» (OPEC) next month, as these countries continue to maintain its market share at the top of its priorities, as analysts in the oil sector see.

The decision of the 12 Member States of the Organization at its meeting in November to not cut the production, lead to deterioration of prices by 60 percent, before returning to the recovery in recent weeks.

The Saudi economist Abdulwahab Abu-Dahesh said: « maintaining market share remains a top priority for the Gulf States. »

He said that what encourage these countries more to do so is «indicators that the strategy adopted in November succeeded, as it led to a reduction of the US shale oil production and the number of drilling areas».

In the face of the sharp decline in its revenues from the oil, some «OPEC» countries especially Iran and Venezuela called publicly to cut production to shore up prices.

A former member of the Supreme Petroleum Council in Kuwait Moses Marefy: «I do not think that any change will happen during the OPEC meeting».

He added that «the Gulf states will continue to defend its market share, and they have the right (...) they will not accept to cut production at its expense, unless an agreement was reached between the non-oil-producing countries.»

It is likely that the burden of any cut in the production of «OPEC» is located on the shoulders of the Gulf countries, namely Saudi Arabia, Kuwait, the UAE and Qatar, which increased its production by about 3.5 million barrels per day since 2011.

At the moment, these countries pumped 16.8 million barrels of oil per day; equivalent to 55 percent of the total production of «OPEC», as Saudi Arabia alone produces 10.3 million barrels per day.

The United States reduced its imports of heavy oil from Latin America and replacing it with Canadian sand oil.

Loughani said that «that pay exporters from Africa and Latin America to search for new markets in the east», adding that more than 3 million barrels per day of high quality crude oil are being pumped to these markets in the competition for the Gulf countries.

He stressed that it puts additional pressure on OPEC countries, especially the Petroleum Exporting Gulf states of, pay them to cooperate in order to maintain their market share and even ensure new importers to additional quantities in the future».

It is likely that «OPEC» countries will be convinced to continue its strategy after the relative recovery of oil prices and lower US production of shale oil.

US Department of Energy data showed decline in crude oil production from 112 thousand barrels to 9.26 million barrels in early May.

Delegate of Kuwait in «OPEC» Nawal Fezia told reporters last week that «prices improve, the growth of supplies from non-member countries in OPEC, especially from oil shale is lower than before and demand bottoms out ».

Oil prices witnessed over the past few weeks an improvement by nearly 40 percent, but it is still less than the average, which exceeded 100 $ per a barrel in June of last year.

Fezia confirmed that the surplus in production dropped from about two million barrels in last year to between one million and 1.2 million barrels now.

But «Commerzbank» warned in early May that «surplus production in the oil market will continue until OPEC cut its production».

"Qatari Al Diar" sell "Barwa City" to the Retirement and Pension Authority with 7.6 billion riyals

"Al Shrque Gate" knew that Qatari Diar has recently sold Barwa City to the Retirement and Pension Authority, and the Qatari Diar had bought Barwa City from Barwa group with worth estimated at 7.6 billion riyals to help to ease its debts, on the grounds that Qatari Diar is the strategic partner of Barwa, and that is during sale of assets as part of a program that was concluded between the two parties and was announced of its completion in the month of March 2015.

According to the information, the Qatari Diar, has sold Barwa City with the same price at which it bought the project from Barwa Real Estate Group.

It was within the assets agreed to be transferred in accordance with the program, Barwa Real Estate Company share in Barwa Bank, Barwa Commercial Avenue, Barwa Al Sadd project ", which has been excluded from the program later in the amendment in the Convention," Barwa City project, and some other assets of the company's investment portfolio.

 In implementation of this program, Barwa completed the process of selling the company's shares in Barwa Bank successfully, amounting to 37.34% of the bank's shares to Diar Company versus final price of 2.39 billion riyals, in addition to the sale and transfer of ownership of its shares in Barwa Real Estate Company on the date of June 8, 2014 in exchange for a final price of about 7.6 billion riyals, and its shares in Barwa Commercial Avenue Company, amounting to 95% of the company's shares on the date of July 14, 2014 in exchange for an initial price of about nine billion riyals, and that for the benefit of Cyrenaica real estate company which wholly owned subsidiary for Qatari Diar, where all those deals were in exchange for the payment of debt owed by Barwa Real Estate Company.

According to information of "Sharque Gate" that there are now talks between Qatari Diar and the retirement and pensions in order to sell Barwa Commercial Avenue which is worth up to about nine billion riyals.

The Barwa Commercial Avenue is considered one of the longest projects in the world, as it runs with the length of 8.5 kilometers, and consists of five different interconnected areas at the same time with each other which are Gera, Safwa, Wogood, Arkan and Sayer representing a wide range of custom residential and commercial spaces, With a well-developed infrastructure network and service facilities which are designed for the convenience of tenants and their interest. Project facilities include 640 retail stores and medical centers, places of entertainment, number of restaurants and cafes, 730 offices, 540 housing units, and 12 thousand vehicles parking.

Barwa Commercial Avenue provides 908 thousand square meters of high-end facilities, and a mix of modern shopping malls, galleries, offices and high quality residential units that meet the needs of local communities and international companies also.

"Geera" section includes large residential apartments consisting of 460 residential units of one-bedroom category and two and three, all equipped, furnished and are modern and sophistication in addition to an abundance of safe interior parks, also includes a custom variety of commercial activities such as fashion shops, restaurants and banks.

 The second section "Safwaa" includes different spaces for shops, this section also includes a range of shops dedicated to all kinds of home and office furniture, also it includes offices of up to 222 offices,

The third section "good" is considered a comprehensive shopping center of high quality and includes shops, restaurants, entertainment centers, serviced apartments, a business center and other, also features a strategic location to serve every business.

 While "Arkaan" is the fourth section, where spaces of shops vary and all of which are customized for different purposes to meet all the needs and requirements of customers such as: equipped kitchens, bathrooms, floors, ceramic and etc., As for the offices, they amount up to 144 offices.

The final section, "Sayer" includes range of shops serve a variety of activities such as automobiles, building materials and trade in general, in addition to a set of offices up to 324 offices.

Saudi investments flowing into Morocco despite the drop in oil prices

Gradually concerns that have been raised about the impact of falling oil prices on the size of the Gulf investments in Morocco began to dissipate, after the declaration of the United Arab Emirates to do a series of investments in the Kingdom, while economic studies office "Mergermarket LTD" confirms that the Saudi financial investment in Morocco will witness important increase during the next phase.

The financial and economic consulting office said that Saudi investments will be in form of capital investment in Moroccan companies not listed on the stock exchange, the technique of this investment is to use Saudi financial funds for companies in need to finance or suffer from shortages in liquidity through the purchase of its shares.

Office denied in his study of the status of Saudi investments that the decline in oil prices has no effect on Saudi financial investments in Morocco, , despite the fact that oil is the main source of wealth in Saudi Arabia, pointing out that Morocco is still considered one of the favorite destinations for foreign investment in North Africa and the Middle East.

Office assured that the Saudi financial investment in Morocco will know the way to rise during the current year, stressing that there are many financial investments will be undertaken by Saudi financial funds in Morocco, "which is now under study or under preparation," the office said, who pointed out that the Saudi investments of Finance will matter three Arab countries, including Morocco alongside Arab Emirates and Egypt.

One of what reinforces the expectations of Economic Studies is the Mohammed bin Bader Al Dosari Declaration, Saudi Moroccan Business Council Member and the CEO of Mashreq Development aboutthe Saudi desire that their investments in Morocco reach up to 38 billion dirhams by 2016.

The new projections come in order to reduce the severity of several warnings launched from the global economic studies on the negative impact of falling oil prices on the Gulf investments in the world that Morocco was interested in these studies for being one of the countries which receive the Gulf investments during the past year.

These studies were based on the expectations of the International Monetary Fund, which said that the decline in oil prices to below 60 $ for barrel will record a deficit in the budgets of the Gulf States by 60 billion $, which is the first of its kind since 17 years.

Morocco managed to attract more than 15 per cent of the investments made by the Gulf countries towards the outside, which make Morocco bets that the size of Gulf investments will reach to 1042 billion dirham by 2024

Saudi Arabia to restructure Aramco to be separated from the Ministry of Petroleum

In unexpected move, the Council of Economic Affairs and Development agreed in Saudi Arabia on Thursday on the view of Prince Mohammed bin Salman Crown Prince to restructure Aramco, in a move designed to give the company more independence.

Sources also revealed for "Elaf" that the visions of the Crown Prince Mohammed bin Salman include separating Aramco from the subordination of the Ministry of Petroleum and Mineral Resources, so that the company to be independent, also Economic Council forms a legal committee to work on the restructuring of the company.

Sources indicate that the restructuring decision includes the conversion of the company into a holding company, includes number of specialized companies in oil and gas industry, production, exploration, refining, marketing, and other joint international projects.

Saudi Aramco controls 261 billion barrels of oil and 234 trillion cubic feet, and employs sixty thousand employees and a budget of 40 billion per year, also Aramco company manages giant joint petroleum projects, such as petroleum refineries in Greece, the Philippines, South Korea and the United States, worth up to about nine billion Saudi riyals, also Aramco manages several local oil refineries and joint ventures Petroleum products and other huge gas projects inside the kingdom, such as petroleum refineries in Jeddah, Riyadh, Yanbu, Rabigh and Ras Tanura.

Aramco date as far back as 1933, when Saudi Arabia signed an agreement with Standard Oil of California Company (Socal previously and now Chevron), where the company got a concession to explore for oil in the eastern coast of the Kingdom.

The duration of the agreement was sixty years, and then the company passed at various stages of changes in ownership. In 1936, (Socal) company sold half of its share of the franchise to Texas Company (Texaco currently), and Socal was operating through a subsidiary company called Klafornean Arabian Standard Oil Company (Casoc), and in May 1939 m, it held other supplemental agreement, added to the original agreement six years, then in 1944, was renamed Klafornean Arabian Standard Oil Company, and changed to the Arab-American oil company Aramco.

In 1948, Aramco sold 30% of its stake to Standard Oil Company of New Jersey, now known as (Ascon), and 10% to Sokona Vacuum Company (now known as Mobil Oil).

In 1962, the Saudi government established the first national oil company in the country, and entrusted the task of project preparation and implementation for the development of the petroleum and petrochemical industries in the country. And it was named the General Organization for Petroleum and Minerals (Petromin).

In 1973, the Saudi government got a stake in Aramco amounted to 25%, and increased in 1974, to 60%.

In 1980, it was amicably agreed that Aramco become owned by Saudi Arabia's 100%, with retroactive effect from 1976, after eight years, specifically in 1988, the Royal Decree was issued to establish the Saudi Arabian Oil Company (Saudi Aramco), to take over the management of Aramco's assets, and in the same year (1988), the Saudi government agreed to establish the Arab Company for marketing and refining "Smark", to be a branch of the General Organization for Petroleum and Minerals (Petromin). The establishment of "Smark" was an interim step to assemble the refining and distribution sectors of petroleum products under one area, and that to achieve the highest return from them.

In June 1993 AD, a royal decree was issued to merge the refineries and distribution facilities of petroleum products and the rights of Petromin, in joint refinery in the Saudi Arabian Oil Company (Aramco), thus the Saudi Aramco become responsible for all oil industry facility in the kingdom.

Saudi Arabia's Stock Market declines despite the rise in oil prices with fears related to Yemen

 Saudi Arabia's Stock Market fell in early trade on Wednesday, despite the rise in oil prices after the Yemeni Houthis attacked city in the Kingdom for the first time.

The main index of the Saudi market fell 0.1 percent with drop of two leading shares: Saudi Basic Industries Corporation (SABIC) and Saudi Telecom 0.9 and 2.8 percent respectively.

Houthi fighters launched an attack with mortars and rockets on Saudi border city on Tuesday for the first time since the start of the military campaign led by the Kingdom against them in late March.

The attack came after a statement from Riyadh to ensure that Saudi Arabia was considering a cease-fire to allow humanitarian assistance and call from Yemeni President Abed Rabbo Mansour Hadi from his exile in Saudi Arabia for talks between the political factions in Yemen.

And Saudi Capital Market Authority announced this week to proceed with the imposition of strict rules on direct foreign investment in the stock market and perhaps that disappointed investors who had hoped to see the huge flows at the opening of the market before the first wave of foreign funds next month.

 Egypt Stock Exchange turned its ascending course in the opening minutes of transactions on Wednesday to decline amid selling processes by local individuals for profit-taking after a strong ascending during the previous two sessions.

The main index fell 0.44 percent to reach to 8789.2 points and the secondary index 0.11 percent to reach to 473.3 points.

The turnover values reached to 118.945 million pounds.

Arab and foreign transactions tended to purchase while the Egyptians transactions tended to sales and institutions accounted for 22 percent of transactions so far.

Orascom Telecom lost 2.1 percent, Palm Hills lost 1.4 percent, Talaat Moustafa Group lost0.5 percent, Global Telecom lost one percent whilecastle lost 1.3 percent.