Category: Business

The Ministry of Finance announced that it has paid more than RO 325 million due for private sector in accordance with payment vouchers received through the e-financial system with a completed documentary cycle.

The Ministry’s Fiscal Performance Bulletin pointed out that public revenue at the end of the first quarter of 2023 amounted to RO 3,217 million, up by 6% compared to RO 3,025 million registered over the corresponding period in 2022. This is mainly attributed to an increase in oil revenue and current revenue, representing 53% and 25%, respectively, of the total public revenue.

Net oil revenue at the end of the first quarter of 2023 amounted to RO 1,707 million, increasing by 9% when compared to RO 1,565 million achieved over the same period in 2022. This is driven by higher oil prices of USD 85 per barrel, as well as an increase in oil production to 1,063,000 barrels per day.

Net gas revenue at the end of the first quarter of 2023 decreased by 12% to stand at RO 720 million compared to RO 819 million registered over the same period in 2022. The decline is a result of a deduction of gas purchase and transport expenses from the total revenue collected from the Integrated Gas Company.

Moreover, current revenue amounted to RO 787 million at the end of the first quarter of 2023, going up by RO 151 million when compared to RO 636 million registered over the same period in 2022.

Public spending by the end of the first quarter of 2023 amounted to RO 2,767 million, comprising a rise by RO 99 million (4%) when compared to the same period in 2022. This is mainly due to an increase in current expenditure and contributions and other expenses.

Further, current expenditures of civil and government units at the end of the first quarter of 2023 amounted to RO 1,033 million, comprising a rise by RO 79 million compared to RO 954 registered during the same period in 2022.

Development expenditure of civil and government units during the same period amounted to RO 117 million, representing 13% of total development spending, i.e. RO 900 million allocated for 2023.

A rise by 53% was recorded in total contributions and other expenses by the end of the first quarter of 2023, amounting to RO 273 compared to RO 179 million registered over the same period in 2022. Oil products subsidy amounted to RO 78 million. Additionally, an amount of RO 100 million was transferred to the budget item on future debt obligations.

Meanwhile, the State Budget registered a surplus of RO 450 at the end of the first quarter of 2023 compared to a surplus of RO 357 million achieved over the same period in 2022.

Source: Oman News Agency

Saudi Arabian Oil Company “Saudi Aramco” announced today the financial results for the first quarter of the current year 2023, as follows:

Net income: $31.9 billion (Q1 2022: $39.5 billion)

Cash flow from operating activities: $39.6 billion (Q1 2022: $38.2 billion)

Free cash flow1: $30.9 billion (Q1 2022: $30.6 billion)

Gearing ratio1: -10.3% as at March 31, 2023, compared to -7.9% at end of 2022

Q4 2022 dividend of $19.5 billion paid in the first quarter; representing a 4.0% increase on the previous quarter

Q1 2023 dividend of $19.5 billion to be paid in the second quarter

Intention to introduce a mechanism for performance-linked dividends, in addition to the base dividend

Extraordinary General Assembly approves bonus shares grant of one bonus share for every 10 shares held

Major investments advance strategic downstream expansion in key global markets

iktva signings valued at around $7.2 billion expected to further strengthen supply chain efficiency

Agreement with Linde Engineering for the development of a new ammonia cracking technology, which supports the advancement of lower-carbon energy solutions

Commenting on the results Aramco President and CEO Amin Nasser, said:

“The results reflect Aramco’s continued high reliability, focus on cost and our ability to react to market conditions, as we generate strong cash flows and further strengthen the balance sheet. Reinforcing our commitment to maximize long-term shareholder value, we are also announcing our intention to introduce a mechanism for performance-linked dividends, in addition to the base dividend the Company currently distributes.

“Our growth strategy remains on track and we made significant progress on the strategic expansion of our Downstream business during the quarter, announcing a key acquisition in the US as well as important investments and partnerships in China and South Korea. Our global Downstream strategy is gaining momentum, and we are leveraging cutting-edge technologies to increase our liquids-to-chemicals capacity and meet anticipated demand for petrochemical products.

“We are also moving forward with our capacity expansion, and our long-term outlook remains unchanged as we believe oil and gas will remain critical components of the global energy mix for the foreseeable future.

“Our intention is to continue to be a reliable energy supplier with the ability to provide more sustainable energy solutions, supporting efforts to achieve an orderly energy transition. By working to further reduce the carbon footprint of our operations, and adding new lower-carbon energy options to our portfolio, I am confident about the contributions we will make.”

For more information, please see the 2023 Saudi Aramco First Quarter Interim Report.

Source: Saudi Press Agency

Oman oil price (July Delivery 2023) today reached 75.74 US Dollars, comprising a drop by 36 cents from the price of yesterday (Monday), which was 76.10 US Dollars.

The average price of Oman oil (May Delivery 2023) has stabilized at 78.49 US Dollars per barrel, thus 3.74 US Dollars per barrel lower than April Delivery 2023

Source: Oman News Agency

Muscat Stock Exchange (MSX) general index (30) today lost (6.4) points, comprising a drop by (0.14%) to close at (4762.42) points, compared to the last session, which stood at (4768.87) points.

The trading value today stood at (RO 2,293,588), comprising a rise by (153.3%), compared to the last session, which stood at (RO 944,796).

The report released by MSX pointed out that the market value went down by (0.029%) to reach about (RO 23.93) billion.

The report added that the value of shares bought by non-Omani investors reached (RO 69,000), comprising (2.86%). The value of shares sold by non-Omani investors reached (RO 59,000), comprising (2.47%). The net non-Omani investment increased by (0.39%) to (RO 9,000).

Source: Oman News Agency

This week it became known that Leo Messi will leave PSG at the end of the season. At the end of April negotiations broke down and his continuity is totally ruled out and even more after the events of recent days in which the player has been rebuked by fans and the club has sanctioned him with a two-week suspension for going to Saudi Arabia.

The question is where he will play next season. Joan Laporta is still determined to bring him to Barcelona, but everything indicates that the player will not be able to.

This topic was raised in an opinion article written by Luis Rojo and published by the Spanish MARCA.

According to the writer, there are several factors that at the moment almost definitively keep the Argentine away from the Catalan club, even though the board of directors continues to fuel the possibility.

Luis Rojo believes that the main stumbling block is Financial Fair Play. Barcelona haven’t managed to reduce expenses nor increase income sufficiently to make room for the Argentine. And it is not a problem that is limited to Messi, it also affects the rest of possible signings such as Inigo Martinez or Ilkay Gundogan.

Then there is the matter of the inscriptions of players like Gavi, Araujo, Balde and Inaki Pena. All of them are in line to join the first team and this aspect is fundamental for the club.

The problem is that Barcelona have to hurry. Messi is not going to wait forever for Barcelona. And the club at the moment cannot guarantee him a place in the squad. First of all because the viability plan has not been approved by LaLiga. And if it is approved, they have to implement it. That means starting with the sale of players to have space in the wage bill.

There is also plenty of competition for his signature, with clubs from the US and Saudi Arabia able and willing to pay over the odds for him.

Source: Oman News Agency

A high-level delegation from Bahrain, led by Abdullah bin Adel Fakhro, Minister of Industry and Commerce (MOIC), supported by Noor bint Ali Al Khulaif, Minister of Sustainable Development, is heading to visit Japan and South Korea on May 5-12.

The visit is organised by MOIC and supported by Bahrain Economic Development Board, and aimed at adding value across a multi-year investment horizon in alignment with the Economic Recovery Plan to deliver sustainable benefits to Bahrain’s investment climate, economy, and society at large.

The visit will bring together an expert team from Bahrain’s public and private sectors to promote high-impact investment opportunities in Bahrain, where in addition to key officials from the MOIC, Ministry of Sustainable Development and Bahrain EDB.

The delegation will be supported by the Bahrain Chamber of Commerce and Industry, the Bahrain Tourism and Exhibitions Authority (BTEA), Nogaholding, Alba, Export Bahrain, and Bahrain-based Gulf Aluminium Rolling Mill (GARMCO).

The visit is also aiming to foster strengthened economic and trade ties with the two countries, focusing on key economic sectors namely financial services, manufacturing, logistics, Information and Communication Technology (ICT), and tourism.

A dynamic line up of events, site visits, and strategic meetings have been planned for the delegation to engage with influential government counterparts and representatives of leading companies with secured global reputations.

The Bahrain EDB will be hosting two headline events in Tokyo to shed light on investment opportunities.

The first exclusive roundtable will be held in collaboration with the Japan-Bahrain Economic Cooperation Association (JBECA) with select top-level executives, while the business forum will be co-hosted by the Japan External Trade Organization (JETRO), titled ‘Accessing Opportunities in MENA via Bahrain’ and invite key stakeholders from leading companies in Japan and feature two panel discussions. The first panel discussion will highlight investment opportunities in Bahrain, while the second session, titled ‘From Bahrain to the World: Stories of Success from Japanese Industry Leaders’.

The Bahrain EDB will organise a forum and networking event to discuss mutually beneficial investment opportunities in collaboration with the Korea Chamber of Commerce and Industry (KCCI) in Seoul. The forum will witness sessions delivered by key members of the delegation, featuring a fireside chat to discuss Bahrain’s strategic value in enabling companies to access markets in the MENA region and beyond.

“Economic diversification and innovation are vital pillars of Bahrain’s economic growth, and this curated delegation visit aims to secure new commercial opportunities across focused sectors, which will enable Bahrain to form strategic partnerships with Japan and South Korea, further building upon strong economic and trade ties,” Industry Minister said.

Source: Bahrain News Agency

Oman oil price (July Delivery 2023) today reached 78.55 US Dollars, comprising a rise by 12 cents from the price of yesterday (Monday), which was 78.43 US Dollars.

The average price of Oman oil (May Delivery 2023) has stabilized at 78.49 US Dollars per barrel, thus 3.74 US Dollars per barrel lower than April Delivery 2023.

Source: Oman News Agency

Total loans and financing in commercial banks in the Sultanate of Oman increased by 6.8% to reach RO 29,812.2 million by the end of February 2023 compared to RO 27,902.8 million during the corresponding period in 2022, according to the data issued by the National Centre for Statistics and Information (NCSI).

The average interest rate on total credit declined by 1.7% at the end of February 2023.

The private sector’s deposits in commercial banks and Islamic windows in the Sultanate of Oman rose by 0.5% to reach RO 17,512.2 million at the end of February 2022 compared to RO 17,419.5 million during the same period in 2022.

The effective exchange rate index of the Omani Rial rose by 7.1% to 114.5 points compared to 106.9 points at the end of the same period in 2022. The total currency issued by the end of February 2022 declined by 5% to reach RO 1,602 million compared to RO 1,687 million by the end of the corresponding period in 2022.

Meanwhile, the total foreign assets at the Central Bank of Oman (CBO) decreased by 13.2% by the end of February 2023 reaching RO 6,581.7 million compared to RO 7,582.0 million during the same period in 2022.

As far as Broad Money Supply (M2) is concerned, it recorded a rise by 1.8% to reach RO 20,665.6 million compared to the same period in 2022 when the reported M2 stood at RO 20,305.3 million.

On the other hand, Narrow Money Supply (M1) dropped by 0.9% to reach RO 5,721.6 million compared to RO 5,774.6 million during the same period in 2022.

Source: Oman News Agency

Muscat Stock Exchange (MSX) general index (30) today lost (26.3) points, comprising a drop by (0.55%) to close at (4725.78) points, compared to the last session, which stood at (4752.04) points.

The trading value today stood at (RO 2,355,751), comprising a surge by (55.1%), compared to the last session, which stood at (RO 1,519,226).

The report released by MSX pointed out that the market value went down by (0.225%) to reach about (RO 23.80) billion.

The report added that the value of shares bought by non-Omani investors reached (RO 841,000), comprising (35.71%). The value of shares sold by non-Omani investors reached (RO 979,000), comprising (41.58%). The net non-Omani investment decreased by (5.87%) to (RO 138,000).

Source: Oman News Agency

The total issuance of Government Treasury Bills amounted to RO 11 Million. The value of the allotted Treasury bills amounted to RO 10 million, for a maturity period of 28 days. The average accepted price reached RO 99.645 for every RO 100, and the minimum accepted price arrived at RO 99.645 per RO 100. The average discount rate and the average yield reached 4.62768% and 4.64417%, respectively.

Whereas, the value of the allotted Treasury bills amounted to RO 1 million, for a maturity period of 91 days. The average accepted price reached RO 98.750 for every RO 100, and the minimum accepted price arrived at RO 89.750 per RO 100. The average discount rate and the average yield reached 5.01374% and 5.07720%, respectively.

Treasury Bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman (CBO) acts as the Issue Manager and provides theadded advantage of ready liquidity through discounting and repurchase facilities (Repo).

It may be noted that the interest rate on the Repo operations with CBO is 5.50% while the discount rate on the Treasury Bills Discounting Facility with CBO is 6.00%.

Furthermore, Treasury Bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the Government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.

Source: Oman News Agency

Halima Rashid Al Zar’ai, Chairperson of the Authority for Small and Medium Enterprises Development (ASMED) today received a delegation of experts from the Global Entrepreneurship Monitor (GEM).

The delegation’s visit comes within the framework of viewing the Authority’s efforts, the support and facilities it offers, as well as the sustainable growth programmes for SMEs.

During the meeting, ASMED’s approaches were highlighted, as well as its various services and initiatives. Those include funding programmes, business incubators, bylaws and legislations.

The meeting also touched on the matter of enhancing the contribution of SMEs in the total value of non-oil exports and improving entrepreneurship indices.

Afterwards, the delegation went on tour of the business incubator at ASMED’s headquarters in Muscat. They also met with representatives of incubated enterprises and viewed their services and products

Source: Oman News Agency

Food prices increased by a record annual rate of 15.7% last month as pressure continues to mount on household finances.

Fresh food prices saw a record jump of 17.8% year-on-year for April, while the price of ambient products, such as tinned goods and other store-cupboard items, went up 12.9%.

The latest figures come as the average price of food and non-alcoholic drinks in the UK has been seeing its sharpest increase in more than 45 years.

According to the latest BRC-NielsenIQ shop price index, shop prices went up 8.8% last month compared to the same period in the previous year.

This figure was slightly down from 8.9% in March and followed spring discounting at fashion and furniture stores.

It came as non-food stores recorded inflation of 5.5% for the month, slipping from 5.9% in March as shops reduced prices in a bid to attract customers.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Overall shop price inflation eased slightly in April due to heavy spring discounting in clothing, footwear and furniture.

“However, food prices remained elevated given ongoing cost pressures throughout the supply chain.

“The knock-on effect from increased production and packaging costs meant that ready meals became more expensive and coffee prices were also up due to the high cost of coffee beans, as well as key producer nations exporting less.

Source: National News Agency – Lebanon