The net profit of Saudi “SAL” Logistics Services Company increased by 28.3 percent during the third quarter of 2026, to reach 231.9 million riyals ($61.7 million), compared to 180.9 million riyals ($48.1 million) in the same quarter of 2025.
On a quarterly basis, net profit increased by 21.2 percent, compared to about 191.4 million riyals ($50.9 million) in the second quarter of the current year.
The company said, in a statement published on the Saudi Stock Exchange website, on Tuesday, that the growth in profits is mainly due to improved performance and higher revenues in the ground handling of freight and logistics services sectors.
The company's revenues increased during the third quarter by 37.5 percent year-on-year, to reach 579.3 million riyals ($154.1 million), compared to 421.2 million riyals ($112 million) in the same period of the previous year.
The company attributed the revenue growth to an increase in revenues from the ground freight handling sector by 35.5 percent, and a growth in revenues from the logistics services sector by 53.1 percent.
Operating profit also increased by 34 percent to 251.8 million riyals ($67 million), compared to 187.8 million riyals ($49.9 million) in the third quarter of 2025.
SAL shares rose by 4.06 percent, reaching 154 riyals, following the announcement of the results.
European bond markets are facing increasing pressure as major US technology companies turn to borrowing from investors in Europe to finance their massive investments in artificial intelligence infrastructure, in a move that will increase the supply of corporate debt and raise borrowing costs for other companies and governments.
Although debt issuance related to the technology sector in Europe is still much lower than its counterpart in the United States, investors expect the pace of issuance to accelerate in the coming months, across the euro, British pound, and Swiss franc markets, according to Reuters.
On Monday, Alphabet launched its second euro-denominated bond issuance this year, after raising 9 billion euros ($10 billion) last May. Other giant technology companies, known as “hyperscalers”, such as “Meta”, “Amazon” and “Microsoft”, are expected to follow suit, as their financing needs increase to expand artificial intelligence infrastructure investments.
Marion Le Mordique, head of investment in fixed income instruments at Fidelity International, said that Europe was lagging behind the United States in debt issuance in the technology sector, but activity is accelerating. The volume of anticipated issuances was estimated at between 40 and 60 billion euros.
Borrowing in foreign currencies also allows companies to hedge the risks of exchange rate fluctuations associated with their global assets, as well as benefit from relatively lower borrowing costs in markets such as Europe.
Deep European capital markets provide an attractive source of financing, but increased issuance, while expanding the base of high-credit-rated bonds available to investors, may lead to higher financing costs for European companies and governments, which already face concerns about public finances and inflation.
Technological borrowing accelerates
Data from the London Stock Exchange Group (LSEG) showed that debt issuances related to the technology sector in the United States exceeded $250 billion since the beginning of the year, an increase of 81 percent, compared to the same period last year. In contrast, issuances in Europe amounted to $39.3 billion, an increase of about 5 percent year-on-year.
Despite concerns about the ability of technology companies' huge investments in artificial intelligence to achieve rapid returns - concerns that contributed to a selling wave that wiped out more than two trillion dollars from the market value of the Nasdaq index, which is heavy on technology stocks over the past month - analysts and investors expect the strength of bond issuances to continue.
BNP Paribas expects the net supply of investment-grade corporate bonds denominated in euros to rise by 83 percent to 192 billion euros ($214 billion) in 2027, compared to about 105 billion euros during the current year.
Julio Baratta, global co-head of investment-grade corporate finance at BNP Paribas, said that issuances by American companies in foreign markets, known as “Reverse Yankee,” may constitute between 80 and 90 billion euros of the total supply expected in 2027, with giant technology companies accounting for the bulk of it.
He added that the entry of any of these companies into the market with a financing deal worth billions of dollars executed within one day attracts the attention of investors and affects the market movement.
Huge deals test investors' appetite
The influx of new issuances may lead to a widening of yield spreads on investment-grade corporate bonds, as giant technology companies compete with other borrowers with high credit ratings, from the utilities, telecommunications and automotive sectors, to attract investor demand.
In this context, asset swap spreads on the ICE Index of European investment-grade corporate bonds widened by 11 basis points over the past month, indicating that investors are demanding an additional return in exchange for holding corporate bonds compared to interest rate swaps.
Analysts believe that the increase in supply may prompt issuing companies to offer price premiums to attract sufficient demand for their bonds, which may raise financing costs for other companies.
Investors in European markets are also relatively less experienced in absorbing the large multi-tranche bond deals that have become common in the United States. Jonathan Owen, a member of the multi-sector portfolio management team at Twenty Four Asset Management, said that such deals may temporarily lead to a widening of the yield spreads on investment-grade European corporate bonds.
Although strong demand from investors has absorbed the issuances so far, a series of huge deals worth between 10 and 20 billion euros may test the market's ability to absorb the supply, especially if the issuances of several companies coincide at the same time.
Faced with volatility in long-term yields and expectations of increased issuance, some European companies have begun to favor short-term bonds at the expense of longer maturities.
Portfolio Manager at Vontobel, Christian Hantel, said that companies not operating in the giant technology sector are currently avoiding long-term issues, noting that some companies that used to issue ten-year bonds are now turning to terms ranging between five and seven years.
The repercussions of increased borrowing are not limited to the corporate bond market, as they may extend to European government bonds, which in turn face pressures resulting from investors’ concerns about general financial conditions and inflation.
European Central Bank President Christine Lagarde said last week that debt issuances by giant technology companies contributed to a rise in government bond yields.
Owen said that investors are increasingly focusing on the size of issues related to artificial intelligence in the long term, and their repercussions on government bond markets, explaining that the debts of giant technology companies have a high credit rating, but they usually provide higher returns than government bonds.
Central bank purchases of gold rose by 42 percent year-on-year during the third quarter of 2026, reaching 321 tons, recording the highest quarterly level since the fourth quarter of 2024, at a time when flows returned strongly to gold-backed ETFs, amid continuing geopolitical risks and concerns about financial discipline.
The “Gold Demand Trends” report issued by the World Gold Council, on Tuesday, showed that the total global demand for the yellow metal reached 1,369 tons during the third quarter, a slight decrease of 1 percent compared to the same period last year. However, the total value of demand rose by 22 percent to $188 billion, driven by an increase in the average price of gold to $4,262 per ounce.
Central banks and official institutions remained among the most prominent sources of demand, as their net purchases amounted to 321 tons during the quarter, while their total purchases since the beginning of the year increased to 675 tons, an increase of 6 percent on an annual basis. The Council noted that diversification of investment portfolios and risk management remain among the most prominent factors supporting central banks’ retention of gold and enhancing their reserves of it.
In the investment market, ETFs backed by physical gold attracted 211 tons during the third quarter, bringing their flows close to the strong levels recorded in the same period in 2025, with a difference of only 6 percent. These flows pushed the funds' total holdings to a record level of 4,256 tons, after the shift witnessed in flows during the second quarter.
Demand for gold through over-the-counter transactions and other sources also rose to 143 tons, compared to 101 tons during the third quarter of last year, although it remained below the high levels recorded earlier in the year.
On the other hand, individual investment demand for gold bullion and coins declined by 19 percent on an annual basis, to 268 tons, with some investors reluctant to buy in light of the lack of clarity in the price trend. China was one of the most prominent markets that recorded a performance contrary to this trend, with demand increasing by 7 percent.
The impact of the rise in gold prices extended to the jewelry sector, as global demand for it decreased by 17 percent to 313 tons, with consumers tending to buy lighter and lower-caliber jewelry. Despite the decline in quantities, the total value of demand for gold jewelry rose to $43 billion.
Artificial intelligence supports technological demand
In terms of industrial uses, demand for gold in the technology sector increased by 3 percent year-on-year, reaching 85 tons, recording the highest quarterly level since the fourth quarter of 2021. Demand in the electronics sector also increased by 5 percent to 72 tons, supported by manufacturing growth related to artificial intelligence applications.
On the supply side, total gold supplies reached 1,369 tons during the third quarter, down 1 percent year-on-year. While mine production rose by 3 percent to a quarterly record level of 1,071 tons, gold recycling fell by 8 percent to 314 tons, recording its lowest levels since the fourth quarter of 2023, despite the rise in prices.
Louise Street, chief market analyst at the World Gold Council, said that demand for gold witnessed mixed performance during the third quarter, with flows returning strongly to exchange-traded funds backed by the yellow metal, driven by geopolitical risks and concerns related to financial discipline, which enhanced the interest of institutional investors.
She added that individual investors showed reluctance to buy due to the lack of clarity in expectations regarding the path of prices, while central banks continued to play a pivotal role in supporting demand, with notable purchases from official institutions continuing.
Regarding market expectations until the end of the year, Street indicated that gold’s prospects appear balanced, explaining that rising interest rates and varying inflation expectations may constitute pressure factors on the yellow metal, while geopolitical risks and tensions in financial markets can enhance investors’ orientation towards gold as a haven for stability.
