Abraaj woes put Gulf’s corporate governance under spotlight | Financial Times:
When the pressure intensified on Abraaj over allegations that it had mishandled investors’ funds, Arif Naqvi, the private equity group’s founder, handed over the reins of the company’s fund business to “drive the necessary operational and governance changes”.
The Dubai-based buyout house said the move would “ensure that the firm continues to perform at the highest levels”.
But six months on, Abraaj is being broken apart as a court-appointed liquidator oversees a restructuring and Mr Naqvi’s fall from grace has renewed scrutiny on the standards of corporate governance in the oil-rich Gulf.
Tuesday, 31 July 2018
Qatar spends £3bn as vote of confidence in post-Brexit Britain | Financial Times
Qatar spends £3bn as vote of confidence in post-Brexit Britain | Financial Times:
Qatar has poured almost £3bn into UK real estate and infrastructure during the past 16 months in a vote of confidence in post-Brexit Britain.
Doha has made the investments even as it grappled with its own financial challenges, triggered after Saudi Arabia and three other nations imposed a regional blockade on the gas-rich Gulf state just over a year ago. They include £1.1bn into infrastructure projects and £1.7bn into real estate, Qatari officials said, and are part of a £5bn investment pledge Doha made to the UK in March last year.
“We committed we would do £5bn in three years and we are already ahead of this,” Ali Shareef al-Emadi, Qatar’s finance minister, told the Financial Times. “We expect during the [next] few months [going] forward we are going to do more investments.”
Qatar has poured almost £3bn into UK real estate and infrastructure during the past 16 months in a vote of confidence in post-Brexit Britain.
Doha has made the investments even as it grappled with its own financial challenges, triggered after Saudi Arabia and three other nations imposed a regional blockade on the gas-rich Gulf state just over a year ago. They include £1.1bn into infrastructure projects and £1.7bn into real estate, Qatari officials said, and are part of a £5bn investment pledge Doha made to the UK in March last year.
“We committed we would do £5bn in three years and we are already ahead of this,” Ali Shareef al-Emadi, Qatar’s finance minister, told the Financial Times. “We expect during the [next] few months [going] forward we are going to do more investments.”
Abraaj founder faces fresh criminal complaint over $300m loan | Financial Times
Abraaj founder faces fresh criminal complaint over $300m loan | Financial Times:
The founder of Abraaj has been hit with another criminal case in the United Arab Emirates for allegedly issuing a $217m cheque with insufficient funds, as the private equity group struggles to effect a court-driven restructuring.
Hamid Jafar, a prominent businessman, has opened another bounced cheque case in Sharjah only two weeks after the apparent resolution of an earlier $48m case.
The cheques relate to a $300m loan issued by Mr Jafar to Dubai-based Abraaj. Habib al-Mulla, lawyer for Abraaj founder Arif Naqvi, said the case was scheduled to be heard by a Sharjah court on August 14.
The founder of Abraaj has been hit with another criminal case in the United Arab Emirates for allegedly issuing a $217m cheque with insufficient funds, as the private equity group struggles to effect a court-driven restructuring.
Hamid Jafar, a prominent businessman, has opened another bounced cheque case in Sharjah only two weeks after the apparent resolution of an earlier $48m case.
The cheques relate to a $300m loan issued by Mr Jafar to Dubai-based Abraaj. Habib al-Mulla, lawyer for Abraaj founder Arif Naqvi, said the case was scheduled to be heard by a Sharjah court on August 14.
Deyaar makes profit but cash pile is reduced | ZAWYA MENA Edition
Deyaar makes profit but cash pile is reduced | ZAWYA MENA Edition:
Dubai-based Deyaar Development published its second quarter accounts on Monday which show that the developer continued to make a profit, but that its earnings continued to rely on one-off factors, such as writebacks against previously-made provisions for potential bad debts.
The company reported a 25.2 million United Arab Emirates dirham ($6.9 million) profit for the second quarter of 2018, a 28 percent decline on the 35.2 million dirham profit made in the same period a year ago. Revenue for the quarter also declined by 21 percent to 137.6 million dirhams, although it remained largely flat for the half-year at 314.1 million dirhams.
The company wrote back a 26.7 million dirham provision it had previously made against an investment in a joint venture during the period, and its cash flow statement showed a 102.7 million outflow for the six-month period, leaving it with a positive cash balance of 237.8 million.
Dubai-based Deyaar Development published its second quarter accounts on Monday which show that the developer continued to make a profit, but that its earnings continued to rely on one-off factors, such as writebacks against previously-made provisions for potential bad debts.
The company reported a 25.2 million United Arab Emirates dirham ($6.9 million) profit for the second quarter of 2018, a 28 percent decline on the 35.2 million dirham profit made in the same period a year ago. Revenue for the quarter also declined by 21 percent to 137.6 million dirhams, although it remained largely flat for the half-year at 314.1 million dirhams.
The company wrote back a 26.7 million dirham provision it had previously made against an investment in a joint venture during the period, and its cash flow statement showed a 102.7 million outflow for the six-month period, leaving it with a positive cash balance of 237.8 million.
Sharjah Publishing City unveils first dual licence | GulfNews.com
Sharjah Publishing City unveils first dual licence | GulfNews.com:
The Sharjah Publishing City (SPC) under the umbrella of the Sharjah Book Authority and the world’s first publishing free zone, have signed an agreement with the Sharjah Economic Development Department (SEDD) to launch a new dual trade licence system for businesses operating in the SPC.
The new dual licence is another investment advantage that the SPC provides.
The dual licence will grant companies two different approvals; the first is issued by the SPC administration, and the second by SEDD, which will allow companies to take advantage of investment opportunities within the free zone as well as the UAE’s mainland markets.
The Sharjah Publishing City (SPC) under the umbrella of the Sharjah Book Authority and the world’s first publishing free zone, have signed an agreement with the Sharjah Economic Development Department (SEDD) to launch a new dual trade licence system for businesses operating in the SPC.
The new dual licence is another investment advantage that the SPC provides.
The dual licence will grant companies two different approvals; the first is issued by the SPC administration, and the second by SEDD, which will allow companies to take advantage of investment opportunities within the free zone as well as the UAE’s mainland markets.
Abraaj founder Arif Naqvi faces new bounced cheque case | GulfNews.com
Abraaj founder Arif Naqvi faces new bounced cheque case | GulfNews.com:
Arif Naqvi, founder of the beleaguered private equity firm Abraaj, is facing a fresh charge of bounced cheque, according to lawyers close to the case.
Sharjah-based Crescent Group founder Hamid Jafar has filed a $217 million (Dh798m) bounced cheque case against Naqvi. The new case comes after a similar case relating to a cheque bounce of $300 million was settled out of court on July 15.
Last month, the public prosecutor’s office in Sharjah had issued an arrest warrant against Naqvi and the case was heard by a Sharjah court before it was dismissed following an ‘agreement’ reached by both parties to settle it out of court on mutually agreed terms.
Arif Naqvi, founder of the beleaguered private equity firm Abraaj, is facing a fresh charge of bounced cheque, according to lawyers close to the case.
Sharjah-based Crescent Group founder Hamid Jafar has filed a $217 million (Dh798m) bounced cheque case against Naqvi. The new case comes after a similar case relating to a cheque bounce of $300 million was settled out of court on July 15.
Last month, the public prosecutor’s office in Sharjah had issued an arrest warrant against Naqvi and the case was heard by a Sharjah court before it was dismissed following an ‘agreement’ reached by both parties to settle it out of court on mutually agreed terms.
Tadawul earnings surge in ‘pivotal year’ for Saudi stock market
Tadawul earnings surge in ‘pivotal year’ for Saudi stock market:
The Saudi Stock Exchange, Tadawul, enjoyed a surge in revenue and profit last year, boosted by increased interest by foreign institutIons, greater diversification of the range of services offered to investors and cost controls.
Tadawul yesterday published its annual report for 2017 — under the theme “expansion and diversification” — showing a 543 percent increase in net profits to SR130 million, on consolidated revenues 74 percent ahead at AR545.4 million.
Earnings before interest, tax, depreciation and amortization (ebitda) rose nearly 300 percent to SR72.5 million.
The Saudi Stock Exchange, Tadawul, enjoyed a surge in revenue and profit last year, boosted by increased interest by foreign institutIons, greater diversification of the range of services offered to investors and cost controls.
Tadawul yesterday published its annual report for 2017 — under the theme “expansion and diversification” — showing a 543 percent increase in net profits to SR130 million, on consolidated revenues 74 percent ahead at AR545.4 million.
Earnings before interest, tax, depreciation and amortization (ebitda) rose nearly 300 percent to SR72.5 million.
Iran currency drops 18% in two days - The Peninsula Qatar
Iran currency drops 18% in two days - The Peninsula Qatar:
Iran's currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.
The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.
It hit 100,000 to the dollar for the first time on Sunday and continued its decline, losing 18 percent of its value in less than two days.
Iran's currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.
The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.
It hit 100,000 to the dollar for the first time on Sunday and continued its decline, losing 18 percent of its value in less than two days.
Qatar leads GCC bonds & sukuk issuance in H1 - The Peninsula Qatar
Qatar leads GCC bonds & sukuk issuance in H1 - The Peninsula Qatar:
The aggregate primary issuance of bonds and sukuk by GCC entities, including central banks local issuances, GCC sovereign and corporate issuances, totaled $95.25bn in H1 2018, a 9.64 percent increase from the total amount raised in H1 2017.
Qatar led the GCC issuances in terms of total value raised, Kuwait Financial Centre (Markaz) noted in its ‘GCC Bonds & Sukuk Market Survey.’
Central Bank local issuances are Fixed Income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity.
The aggregate primary issuance of bonds and sukuk by GCC entities, including central banks local issuances, GCC sovereign and corporate issuances, totaled $95.25bn in H1 2018, a 9.64 percent increase from the total amount raised in H1 2017.
Qatar led the GCC issuances in terms of total value raised, Kuwait Financial Centre (Markaz) noted in its ‘GCC Bonds & Sukuk Market Survey.’
Central Bank local issuances are Fixed Income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity.
QFC witnesses 69% jump in new firms in first half of 2018
QFC witnesses 69% jump in new firms in first half of 2018:
Qatar Financial Centre (QFC), one of the world’s fastest-growing onshore business and financial centres, has witnessed a 69% year-on-year jump in new firms registered under it during the first half (H1) of this year.
The total number of firms on the QFC platform was recorded as 532 at the end of H1 ended June 30, 2018. The majority of the new firms joining the QFC platform have come from Europe, India and Pakistan.
There have also been a number of firms joining from the US and Middle East and North Africa regions, a QFC spokesman said.
Qatar Financial Centre (QFC), one of the world’s fastest-growing onshore business and financial centres, has witnessed a 69% year-on-year jump in new firms registered under it during the first half (H1) of this year.
The total number of firms on the QFC platform was recorded as 532 at the end of H1 ended June 30, 2018. The majority of the new firms joining the QFC platform have come from Europe, India and Pakistan.
There have also been a number of firms joining from the US and Middle East and North Africa regions, a QFC spokesman said.
MIDEAST STOCKS-Banks weigh on Saudi and Dubai, as Qatar rebound continues | Reuters
MIDEAST STOCKS-Banks weigh on Saudi and Dubai, as Qatar rebound continues | Reuters:
Shares of blue chip banks and petrochemical companies weighed on the Saudi stock market on Tuesday, while Qatar’s benchmark index continued to recover.
Saudi Arabia, the region’s biggest stock market, ended down 0.2 percent. The index’s two biggest market movers, Al-Rajhi Bank and petrochemicals giant SABIC , both shed 0.5 percent.
Riyad Bank and Saudi British Bank (SABB) also closed down 1.1 percent and 1.6 percent respectively.
Shares of blue chip banks and petrochemical companies weighed on the Saudi stock market on Tuesday, while Qatar’s benchmark index continued to recover.
Saudi Arabia, the region’s biggest stock market, ended down 0.2 percent. The index’s two biggest market movers, Al-Rajhi Bank and petrochemicals giant SABIC , both shed 0.5 percent.
Riyad Bank and Saudi British Bank (SABB) also closed down 1.1 percent and 1.6 percent respectively.
Dubai Stock Index Posts the Biggest Monthly Increase in a Year - Bloomberg
Dubai Stock Index Posts the Biggest Monthly Increase in a Year - Bloomberg:
Dubai’s main equity gauge posted its biggest monthly gain in a year, powered by a revival in the banking sector as better-than-estimated earnings help U.A.E. stocks escape this year’s doldrums.
The DFM General Index has surged 4.8 percent in July, ending five straight months of losses. In Abu Dhabi, the ADX General Index posted its largest monthly gain in more than two years, advancing 6.6 percent.
The country’s biggest banks led the rally in both markets. Last week, First Abu Dhabi Bank PJSC delivered estimate-beating results for the quarter ended in June and raised its forecasts for the year. Dubai’s two biggest lenders, Emirates NBD PJSC and Dubai Islamic Bank PJSC, also reported higher-than-expected results, as a recovery in construction activity helped boost lending.
Dubai’s main equity gauge posted its biggest monthly gain in a year, powered by a revival in the banking sector as better-than-estimated earnings help U.A.E. stocks escape this year’s doldrums.
The DFM General Index has surged 4.8 percent in July, ending five straight months of losses. In Abu Dhabi, the ADX General Index posted its largest monthly gain in more than two years, advancing 6.6 percent.
The country’s biggest banks led the rally in both markets. Last week, First Abu Dhabi Bank PJSC delivered estimate-beating results for the quarter ended in June and raised its forecasts for the year. Dubai’s two biggest lenders, Emirates NBD PJSC and Dubai Islamic Bank PJSC, also reported higher-than-expected results, as a recovery in construction activity helped boost lending.
Dubai Malls Operator Revenue Climbs as Expansion Offsets VAT - Bloomberg
Dubai Malls Operator Revenue Climbs as Expansion Offsets VAT - Bloomberg:
Majid Al Futtaim Holding LLC, the Dubai-based conglomerate which operates Carrefour SA stores in the Middle East, posted a 13 percent increase in revenue during the first half, as the company’s regional expansion helped weather the impact of value-added taxation at home.
Sales climbed to 17.8 billion dirhams ($4.85 billion) from a year earlier despite “adverse market conditions,” Chief Executive Officer Alain Bejjani told Bloomberg TV on Tuesday in Dubai. Earnings before interest, taxation, depreciation and amortization grew 4 percent to 2.1 billion dirhams.
MAF, as the group is known, has steadily extended its presence beyond Dubai to countries including Egypt, Lebanon and Oman. The group is opening 100 new Carrefour supermarkets in Egypt, 600 cinemas in Saudi Arabia and is expanding in Kenya, Bejjani said.
Majid Al Futtaim Holding LLC, the Dubai-based conglomerate which operates Carrefour SA stores in the Middle East, posted a 13 percent increase in revenue during the first half, as the company’s regional expansion helped weather the impact of value-added taxation at home.
Sales climbed to 17.8 billion dirhams ($4.85 billion) from a year earlier despite “adverse market conditions,” Chief Executive Officer Alain Bejjani told Bloomberg TV on Tuesday in Dubai. Earnings before interest, taxation, depreciation and amortization grew 4 percent to 2.1 billion dirhams.
MAF, as the group is known, has steadily extended its presence beyond Dubai to countries including Egypt, Lebanon and Oman. The group is opening 100 new Carrefour supermarkets in Egypt, 600 cinemas in Saudi Arabia and is expanding in Kenya, Bejjani said.
S&P reaffirms positive outlook credit ratings on Sharjah | ZAWYA MENA Edition
S&P reaffirms positive outlook credit ratings on Sharjah | ZAWYA MENA Edition:
Standard & Poor’s (S&P) has reaffirmed Sharjah’s BBB + sovereign credit ratings with a positive outlook.
In a statement, S&P said that it expected the Emirate's economy to grow two per cent between 2018 and 2021 as well as the acceleration of GDP growth in 2018 based on the growth of business in the real estate and construction sectors.
The credit ratings agency lauded Sharjah’s diverse economic structure, compared to many economies of the region. The industrial sector contributes as much as 17 per cent to the Emirate’s GDP, followed by real estate, retail, wholesale and financial services, each accounting for about 10 per cent of the Emirate's GDP.
Standard & Poor’s (S&P) has reaffirmed Sharjah’s BBB + sovereign credit ratings with a positive outlook.
In a statement, S&P said that it expected the Emirate's economy to grow two per cent between 2018 and 2021 as well as the acceleration of GDP growth in 2018 based on the growth of business in the real estate and construction sectors.
The credit ratings agency lauded Sharjah’s diverse economic structure, compared to many economies of the region. The industrial sector contributes as much as 17 per cent to the Emirate’s GDP, followed by real estate, retail, wholesale and financial services, each accounting for about 10 per cent of the Emirate's GDP.
Saudi's PIF aims to raise between $6-8 bln in first loan -sources | Reuters
Saudi's PIF aims to raise between $6-8 bln in first loan -sources | Reuters:
Saudi Arabia’s top sovereign wealth fund is seeking to raise between $6 and $8 billion from banks as it seeks to boost its firepower to help finance the kingdom’s economic transformation plans, according to sources familiar with the matter.
The Public Investment Fund (PIF) issued a request for proposals to banks several weeks ago about raising money for a syndicated loan, said two of the sources, with a third adding the deal is not expected to close before September.
A spokesman for PIF declined to comment.
Saudi Arabia’s top sovereign wealth fund is seeking to raise between $6 and $8 billion from banks as it seeks to boost its firepower to help finance the kingdom’s economic transformation plans, according to sources familiar with the matter.
The Public Investment Fund (PIF) issued a request for proposals to banks several weeks ago about raising money for a syndicated loan, said two of the sources, with a third adding the deal is not expected to close before September.
A spokesman for PIF declined to comment.
Oil to hold steady into 2019 as OPEC, U.S. compensate for supply hitches: Reuters poll | Reuters
Oil to hold steady into 2019 as OPEC, U.S. compensate for supply hitches: Reuters poll | Reuters:
Oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the U.S. meets growing demand led by Asia and helps to offset supply disruptions from Iran and elsewhere, a Reuters poll showed on Tuesday.
A survey of 44 economists and analysts forecast Brent crude LCOc1 to average $72.87 a barrel in 2018, 29 cents higher than the $72.58 projected in the previous month’s poll and above the $71.68 average so far this year.
U.S. crude futures CLc1 were seen averaging $67.32 a barrel in 2018, compared with $66.79 forecast last month and an average of $66.16 until now.
Oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the U.S. meets growing demand led by Asia and helps to offset supply disruptions from Iran and elsewhere, a Reuters poll showed on Tuesday.
A survey of 44 economists and analysts forecast Brent crude LCOc1 to average $72.87 a barrel in 2018, 29 cents higher than the $72.58 projected in the previous month’s poll and above the $71.68 average so far this year.
U.S. crude futures CLc1 were seen averaging $67.32 a barrel in 2018, compared with $66.79 forecast last month and an average of $66.16 until now.
Iran: Trump needs to rejoin nuclear deal if he wants talks
Iran: Trump needs to rejoin nuclear deal if he wants talks:
Iranian officials reacted skeptically on Tuesday to President Donald Trump’s comments that he’s willing to negotiate with his Iranian counterpart, saying instead that if Trump wants talks, he needs to rejoin the international nuclear deal he unilaterally pulled out of earlier this year.
Trump on Monday said he’d meet with Iranian President Hassan Rouhani “anytime” if the Iranian leader were willing.
In his first public remarks after the comment, Rouhani did not mention Trump at all but instead stressed the need for the other nations involved in the nuclear deal to forge ahead with their pledges of trying to salvage it.
Iranian officials reacted skeptically on Tuesday to President Donald Trump’s comments that he’s willing to negotiate with his Iranian counterpart, saying instead that if Trump wants talks, he needs to rejoin the international nuclear deal he unilaterally pulled out of earlier this year.
Trump on Monday said he’d meet with Iranian President Hassan Rouhani “anytime” if the Iranian leader were willing.
In his first public remarks after the comment, Rouhani did not mention Trump at all but instead stressed the need for the other nations involved in the nuclear deal to forge ahead with their pledges of trying to salvage it.
Nasdaq Dubai to launch futures trading of 12 Saudi firms from Sept | Reuters
Nasdaq Dubai to launch futures trading of 12 Saudi firms from Sept | Reuters:
Nasdaq Dubai will launch equity futures trading of 12 Saudi Arabian companies from September, stimulating investor interest in the kingdom’s capital markets, the exchange said.
Nasdaq Dubai, which launched UAE futures trading in 2016, announced in May this year it would add Saudi single futures.
On Tuesday, it identified the 12 Saudi companies, which have a combined market capitalization of 859 billion Saudi riyals ($229 billion), representing 43 percent of the Saudi stock exchange.
Nasdaq Dubai will launch equity futures trading of 12 Saudi Arabian companies from September, stimulating investor interest in the kingdom’s capital markets, the exchange said.
Nasdaq Dubai, which launched UAE futures trading in 2016, announced in May this year it would add Saudi single futures.
On Tuesday, it identified the 12 Saudi companies, which have a combined market capitalization of 859 billion Saudi riyals ($229 billion), representing 43 percent of the Saudi stock exchange.
CEO confirms Credit Suisse seeking Saudi banking license | Reuters
CEO confirms Credit Suisse seeking Saudi banking license | Reuters:
Credit Suisse (CSGN.S) Chief Executive Tidjane Thiam personally traveled to Saudi Arabia to apply for a banking license, he said on Tuesday, confirming Reuters information the Swiss bank is seeking a full banking license in the Middle East’s biggest economy.
“I have been to Riyadh, I met the head of SAMA (the Saudi Arabian Monetary Authority), I made the application myself,” Thiam said in response to a query during the bank’s second-quarter news conference.
An increasing number of western banks and fund managers are looking to expand in the kingdom since the government unveiled a transformation plan aimed at privatizing vast swathes of the economy.
Credit Suisse (CSGN.S) Chief Executive Tidjane Thiam personally traveled to Saudi Arabia to apply for a banking license, he said on Tuesday, confirming Reuters information the Swiss bank is seeking a full banking license in the Middle East’s biggest economy.
“I have been to Riyadh, I met the head of SAMA (the Saudi Arabian Monetary Authority), I made the application myself,” Thiam said in response to a query during the bank’s second-quarter news conference.
An increasing number of western banks and fund managers are looking to expand in the kingdom since the government unveiled a transformation plan aimed at privatizing vast swathes of the economy.
MIDEAST STOCKS-Saudi bank shares up as most Gulf markets open weak | Reuters
MIDEAST STOCKS-Saudi bank shares up as most Gulf markets open weak | Reuters:
Shares in Saudi blue-chip banks rose in early trade on Tuesday, while materials and real estate companies slipped as most Gulf markets opened lower.
Among the biggest gainers on the Saudi index were financial firms Alinma and Samba, which rose 1.1 and 0.5 percent respectively.
Banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks. But because demand for loans is also low, there is little risk of a funding shortage.
Shares in Saudi blue-chip banks rose in early trade on Tuesday, while materials and real estate companies slipped as most Gulf markets opened lower.
Among the biggest gainers on the Saudi index were financial firms Alinma and Samba, which rose 1.1 and 0.5 percent respectively.
Banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks. But because demand for loans is also low, there is little risk of a funding shortage.
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