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It’s another busy day for Saudi Arabia in the foreign press, with commentary on Saudi equity performance, the resumption of work on Jeddah Tower, and the Kingdom’s economic diversification plans.
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TASI starts off 4Q on a low note: The Tadawul all-share index (TASI) fell 3.7% in the first four days of 4Q 2024, wiping out all of the index’s YTD gains and marking “its worst fourth-quarter start in years,” Bloomberg reports. The decline, which comes as regional tensions draw close to a crescendo, is expected to continue in the short-term, with head of sell-side research at Aljazira Capital, Jassim Al Jubran. The Saudi equity market’s performance will be affected by the trajectory of the conflict, particularly if Saudi’s neighbors begin engaging in direct military conflict. Strategists at HSBC Holdings downgraded Saudi Arabian equities to neutral from overweight, pointing to short-term concerns due to the geopolitical tensions and lower oil prices.
Where does oil factor in? Despite oil prices placing pressure on the national budget and diversification plans, crude would have to hover below USD 69 / bbl to impact equity markets, the business information service quotes Sedco Capital’s acting CEO Abdulwahhab Abed as saying.
MEANWHILE- The Financial Times looks at Prince Alwaleed bin Talal’s plans to resume construction on the Jeddah Tower, which is set to become the world’s tallest skyscraper when completed in 2028.
AND- CNN journalist Fareed Zakaria sang the praises of Saudi Arabia on Arab News’ show Frankly Speaking, lauding the positive changes taking hold in the Kingdom (watch, runtime: 32:05). “There are areas where [Saudi Arabia] is moving very fast; there are areas where it is still being somewhat restrained. I am impressed that they are trying to strike a balance, that they are trying to push some things forward and modernize in some areas.”
