Exclusive: Saudi Tadawul expects market capitalisation to top $1 trillion by 2022 - The National:
"Saudi Arabia’s stock exchange expects its market capitalisation to more than double by 2022, climbing to above US$1 trillion, helped by a potential share float of Saudi Aramco, leveraging the government’s privatisation programme and bringing domestic and regional companies seeking financing to the exchange, its chief executive said. “We hope so. Yes,” Khalid Al Hussan said of the possible jump for Tadawul, as the exchange is known, from its current $440 billion market capitalisation level to beyond $1tn in the next five years. “It’s not easy. I can’t say it’s going to be easy. It comes with challenges,” he said in an exclusive interview with The National in Riyadh. Tadawul is the biggest equities exchange in the Arab world and is among the top 26 largest capitalised bourses globally. It opened doors to foreign investors in 2015 and has gone through radical transformation operationally and on the regulatory front. The changes make it a potential candidate for inclusion in the MSCI Emerging Market Index, a gauge tracked by investors with trillions of assets under management."
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Wednesday, 25 October 2017
Abu Dhabi Investor Targets U.S. Tech Spending, Saudi Deals - Bloomberg
Abu Dhabi Investor Targets U.S. Tech Spending, Saudi Deals - Bloomberg:
"Abu Dhabi’s government-owned development fund is betting on U.S. technology in a multi-billion dollar spending plan that will see it partnering with Saudi Arabia and competing against other oil-rich neighbors like Qatar.
Mubadala Investment Co. wants to expand investments in technology companies in the U.S. after opening a Silicon Valley office last week, Chief Executive Officer Khaldoon Al Mubarak said in an interview with Bloomberg TV in Riyadh on Tuesday. The office, which Mubadala opened just six months after deciding it needed a U.S. base, represents a break with the company’s strategy to center operations in Abu Dhabi.
“It became very clear to us that we needed to go deeper,” Al Mubarak said. “And to go deeper we needed to be closer to the market. We needed to be in San Francisco at Silicon Valley.”"
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"Abu Dhabi’s government-owned development fund is betting on U.S. technology in a multi-billion dollar spending plan that will see it partnering with Saudi Arabia and competing against other oil-rich neighbors like Qatar.
Mubadala Investment Co. wants to expand investments in technology companies in the U.S. after opening a Silicon Valley office last week, Chief Executive Officer Khaldoon Al Mubarak said in an interview with Bloomberg TV in Riyadh on Tuesday. The office, which Mubadala opened just six months after deciding it needed a U.S. base, represents a break with the company’s strategy to center operations in Abu Dhabi.
“It became very clear to us that we needed to go deeper,” Al Mubarak said. “And to go deeper we needed to be closer to the market. We needed to be in San Francisco at Silicon Valley.”"
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Etihad-linked bonds stay afloat despite downgrade
Etihad-linked bonds stay afloat despite downgrade:
"Some $1.2 billion in bonds issued by an Etihad Airways-linked special purpose vehicle only lost a few points in the secondary market after Fitch downgraded them to “CC” last Friday, putting the paper just two notches above default.
The bonds’ cash price was a few points above 80 cents on the dollar on Wednesday. Fund managers say they should be at least 20 points below that, but the discrepancy reflects expectations of financial backing by Etihad, the borrower of reference under the special purpose vehicle.
However, investors are questioning whether such support would actually materialise."
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"Some $1.2 billion in bonds issued by an Etihad Airways-linked special purpose vehicle only lost a few points in the secondary market after Fitch downgraded them to “CC” last Friday, putting the paper just two notches above default.
The bonds’ cash price was a few points above 80 cents on the dollar on Wednesday. Fund managers say they should be at least 20 points below that, but the discrepancy reflects expectations of financial backing by Etihad, the borrower of reference under the special purpose vehicle.
However, investors are questioning whether such support would actually materialise."
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Huge Saudi fund to be conservative borrower, chief says
Huge Saudi fund to be conservative borrower, chief says:
"Saudi Arabia’s Public Investment Fund will be a conservative borrower when it enters international debt markets to obtain leverage for its expansion, the fund’s managing director Yasir al-Rumayyan said on Wednesday. The PIF, with assets of $224 billion, is being built into a key instrument of Saudi policy, investing at home to develop the economy and abroad to increase returns on the kingdom’s oil wealth. It aims to expand to $400 billion by 2020. In addition to obtaining capital injections and assets from the government, plus retained earnings, it plans to fund itself with loans, bonds or a combination of the two - raising the prospect of a big new debt issuer in international markets."
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"Saudi Arabia’s Public Investment Fund will be a conservative borrower when it enters international debt markets to obtain leverage for its expansion, the fund’s managing director Yasir al-Rumayyan said on Wednesday. The PIF, with assets of $224 billion, is being built into a key instrument of Saudi policy, investing at home to develop the economy and abroad to increase returns on the kingdom’s oil wealth. It aims to expand to $400 billion by 2020. In addition to obtaining capital injections and assets from the government, plus retained earnings, it plans to fund itself with loans, bonds or a combination of the two - raising the prospect of a big new debt issuer in international markets."
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Brent Won’t Rally to $70 a Barrel, Global Risk Management Says - Bloomberg
Brent Won’t Rally to $70 a Barrel, Global Risk Management Says - Bloomberg:
"Michael Poulsen, senior oil risk manager at Global Risk Management, says U.S. shale producers have demonstrated self-control over the past year, with more concern for revenue rather than just output, although he doesn’t expect breakevens to fall much further. He also said even if the market hits $60 a barrel, it won’t spark a rally to $70. Poulsen was interviewed on Oct. 24. Comments have been edited and condensed. What will it take for oil to shift out of this range? If we are talking the $55-$60 a barrel range, then we will probably need some sort of geopolitical trigger for the upside. For the downside, it’s a little bit more tricky. It would have to be a failed OPEC agreement in November or demand dropping. "
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"Michael Poulsen, senior oil risk manager at Global Risk Management, says U.S. shale producers have demonstrated self-control over the past year, with more concern for revenue rather than just output, although he doesn’t expect breakevens to fall much further. He also said even if the market hits $60 a barrel, it won’t spark a rally to $70. Poulsen was interviewed on Oct. 24. Comments have been edited and condensed. What will it take for oil to shift out of this range? If we are talking the $55-$60 a barrel range, then we will probably need some sort of geopolitical trigger for the upside. For the downside, it’s a little bit more tricky. It would have to be a failed OPEC agreement in November or demand dropping. "
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Dubai developer Nakheel's Q3 profit up 42 pct
Dubai developer Nakheel's Q3 profit up 42 pct:
"Dubai developer Nakheel reported a 42.4 percent increase in third quarter net profit on Wednesday, Reuters calculations showed. The developer behind Dubai’s palm-shaped islands made a 1.36 billion dirham ($370.28 million) profit in the July-September period, up from 955 million dirhams, Reuters calculated based on a nine-month earnings statement. It made 4 billion dirham profit for the nine months to September 30, up 2.3 percent, the state-owned developer said."
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"Dubai developer Nakheel reported a 42.4 percent increase in third quarter net profit on Wednesday, Reuters calculations showed. The developer behind Dubai’s palm-shaped islands made a 1.36 billion dirham ($370.28 million) profit in the July-September period, up from 955 million dirhams, Reuters calculated based on a nine-month earnings statement. It made 4 billion dirham profit for the nine months to September 30, up 2.3 percent, the state-owned developer said."
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MidEast Stocks Mostly Gain, Saudi Stocks Helped by Oil Prices - Nasdaq.com
MidEast Stocks Mostly Gain, Saudi Stocks Helped by Oil Prices - Nasdaq.com:
"Middle East shares mostly rose, with Saudi stocks finding mild support from firm oil prices . Brent crude was above $58 per barrel. In company news, Saudi Electricity Co (SEC) said the Saudi government is considering selling a large stake in the company to SoftBank Vision Fund, while maintaining a controlling stake. SEC, which is 74% owned by Saudi Arabia's Public Investment Fund, has assets estimated at around $100 billion."
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"Middle East shares mostly rose, with Saudi stocks finding mild support from firm oil prices . Brent crude was above $58 per barrel. In company news, Saudi Electricity Co (SEC) said the Saudi government is considering selling a large stake in the company to SoftBank Vision Fund, while maintaining a controlling stake. SEC, which is 74% owned by Saudi Arabia's Public Investment Fund, has assets estimated at around $100 billion."
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UAE's First Abu Dhabi Bank Q3 profit falls on lower operating income | ZAWYA MENA Edition
UAE's First Abu Dhabi Bank Q3 profit falls on lower operating income | ZAWYA MENA Edition:
"First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Wednesday reported an 18 percent drop in third quarter profit as lower operating income weighed on its bottom line. FAB made a net profit of 2.61 billion dirhams ($711 million) in the third quarter of 2017, compared to 3.18 billion dirhams in the period a year earlier, the bank said in a statement. This is the second combined financials of Abu Dhabi's two biggest banks after their merger in April to create one of the largest banks in the Middle East and Africa. "
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"First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Wednesday reported an 18 percent drop in third quarter profit as lower operating income weighed on its bottom line. FAB made a net profit of 2.61 billion dirhams ($711 million) in the third quarter of 2017, compared to 3.18 billion dirhams in the period a year earlier, the bank said in a statement. This is the second combined financials of Abu Dhabi's two biggest banks after their merger in April to create one of the largest banks in the Middle East and Africa. "
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Saudi stock exchange pushing for ‘exclusive’ Aramco listing
Saudi stock exchange pushing for ‘exclusive’ Aramco listing:
"The head of Saudi Arabia’s stock exchange has said the Tadawul is pushing to be the “exclusive” listing venue for the initial public offering of Saudi Aramco, the kingdom’s state energy giant, raising questions about the status of the international leg of what has been billed as the biggest IPO in history. Khalid Al Hussan said while the kingdom’s highest authorities had yet to make a final decision on the structure of any IPO – which New York and London have been vying to host internationally – the Tadawul was preparing for an eventuality where it could be the sole listing venue. “Our aspiration for Tadawul, as the main exchange in the region, is to be the exclusive venue for Aramco,” said Mr Al Hussan in an interview with the Financial Times in Riyadh, in which he made his first public comments on the Aramco listing."
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"The head of Saudi Arabia’s stock exchange has said the Tadawul is pushing to be the “exclusive” listing venue for the initial public offering of Saudi Aramco, the kingdom’s state energy giant, raising questions about the status of the international leg of what has been billed as the biggest IPO in history. Khalid Al Hussan said while the kingdom’s highest authorities had yet to make a final decision on the structure of any IPO – which New York and London have been vying to host internationally – the Tadawul was preparing for an eventuality where it could be the sole listing venue. “Our aspiration for Tadawul, as the main exchange in the region, is to be the exclusive venue for Aramco,” said Mr Al Hussan in an interview with the Financial Times in Riyadh, in which he made his first public comments on the Aramco listing."
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MIDEAST STOCKS-Saudi stocks largely flat, SEC rises on potential SoftBank stake
MIDEAST STOCKS-Saudi stocks largely flat, SEC rises on potential SoftBank stake:
"Saudi Arabian stocks opened largely flat on Wednesday as gains by Saudi Electricity Co (SEC) were offset by declines for Zain Saudi and Middle East Healthcare.
SEC was one of the biggest gainers, rising by 4.5 percent in early trading after news on Tuesday that the kingdom will consider selling a large stake in the utility to SoftBank Vision Fund, the world’s largest private equity fund.
The Saudi government would retain a controlling stake, the utility said in a statement."
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"Saudi Arabian stocks opened largely flat on Wednesday as gains by Saudi Electricity Co (SEC) were offset by declines for Zain Saudi and Middle East Healthcare.
SEC was one of the biggest gainers, rising by 4.5 percent in early trading after news on Tuesday that the kingdom will consider selling a large stake in the utility to SoftBank Vision Fund, the world’s largest private equity fund.
The Saudi government would retain a controlling stake, the utility said in a statement."
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Saudi Wealth Fund Plans to Borrow to Double Investment Returns - Bloomberg
Saudi Wealth Fund Plans to Borrow to Double Investment Returns - Bloomberg:
"Saudi Arabia’s sovereign-wealth fund will borrow to boost returns from its investments as it seeks to diversify the kingdom’s oil-dependent economy.
The Public Investment Fund will also look for more partnerships like its tie-ups with money managers Blackstone Group LP and SoftBank Group Corp. as part of its aim to boost assets under management to $2 trillion by 2030, Managing Director Yasir Al-Rumayyan said in a Bloomberg Television interview at the Future Investment Initiative in Riyadh. The fund will seek to hold a quarter of those assets in foreign markets, he said."
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"Saudi Arabia’s sovereign-wealth fund will borrow to boost returns from its investments as it seeks to diversify the kingdom’s oil-dependent economy.
The Public Investment Fund will also look for more partnerships like its tie-ups with money managers Blackstone Group LP and SoftBank Group Corp. as part of its aim to boost assets under management to $2 trillion by 2030, Managing Director Yasir Al-Rumayyan said in a Bloomberg Television interview at the Future Investment Initiative in Riyadh. The fund will seek to hold a quarter of those assets in foreign markets, he said."
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