DFM accredits Bahrain’s Sico as market maker | GulfNews.com:
Sico BSC, the Bahrain-based investment management firm, has been accredited to provide liquidity and act as market maker for companies listed on Dubai Financial Market (DFM), it said on Monday.
The company said in a statement that the move would help create more “dynamic two-way markets that will enhance the liquidity of companies listed on the exchange.”
The accreditation builds on Sico’s status as the leading market-maker on the Bahrain Bourse since 1995, reinforcing its position as a pioneer and key player in GCC financial markets. It also follows the admission of Sico as the first non-UAE based registered market maker and liquidity provider at the Abu Dhabi Securities Exchange (ADX) last month.
Monday, 17 September 2018
KSA in line for multibillion-dollar infrastructure dividend
KSA in line for multibillion-dollar infrastructure dividend:
Saudi Arabia stands to collect an “infrastructure dividend” worth billions as it pushes ahead with its diversification drive, powered by a localization program involving partnerships between KSA enterprises and overseas firms to ensure wealth cascades down to the wider population, say experts.
Dr. Raed Kombargi, an Abu Dhabi-based partner with consultancy Strategy&, told Arab News that KSA should be able to provide goods and services for its local market as well as build globally competitive export industries. “The dividend is certainly there and I am confident they can do it,” he said.
Kombargi said the purpose of localization was, on one level, to stimulate the economy by creating a lot of jobs. But it was also about having an impact on GDP.
Saudi Arabia stands to collect an “infrastructure dividend” worth billions as it pushes ahead with its diversification drive, powered by a localization program involving partnerships between KSA enterprises and overseas firms to ensure wealth cascades down to the wider population, say experts.
Dr. Raed Kombargi, an Abu Dhabi-based partner with consultancy Strategy&, told Arab News that KSA should be able to provide goods and services for its local market as well as build globally competitive export industries. “The dividend is certainly there and I am confident they can do it,” he said.
Kombargi said the purpose of localization was, on one level, to stimulate the economy by creating a lot of jobs. But it was also about having an impact on GDP.
Kuwaiti investors weigh up their future bond to Aston Martin | Arab News
Kuwaiti investors weigh up their future bond to Aston Martin | Arab News:
Andy Palmer, the affable chief executive of Aston Martin, called the forthcoming initial pubic offering (IPO) of the famous British car company a “monumental moment” in its 105-year history.
Quite right. For a company that in many ways mirrors the past century of British engineering — heavy on style and invention, light on financial acumen — the prospect of a £5 billion ($6.5 billion) valuation and a possible place in the FTSE 100 index of London’s elite is a real triumph.
Aston has gone bust seven times in its history, but has always come back with a product to catch the fancy of a forty-something male petrolhead with an eye for style and glamor. Its best bit of marketing came when film makers put the dashing spy James Bond behind the wheel of an Aston Martin DB5.
Andy Palmer, the affable chief executive of Aston Martin, called the forthcoming initial pubic offering (IPO) of the famous British car company a “monumental moment” in its 105-year history.
Quite right. For a company that in many ways mirrors the past century of British engineering — heavy on style and invention, light on financial acumen — the prospect of a £5 billion ($6.5 billion) valuation and a possible place in the FTSE 100 index of London’s elite is a real triumph.
Aston has gone bust seven times in its history, but has always come back with a product to catch the fancy of a forty-something male petrolhead with an eye for style and glamor. Its best bit of marketing came when film makers put the dashing spy James Bond behind the wheel of an Aston Martin DB5.
Banking, industrials equities weigh on Qatar bourse
Banking, industrials equities weigh on Qatar bourse:
The Qatar Stock Exchange continued to remain under the bearish spell for the second day on Monday, dropping more than 109 points, mainly dragged by banking and industrials equities.
Strong selling pressure from Gulf and domestic funds drove the 20-stock Qatar Index down 1.1% to 9,832.68 points.
Doha Bank-sponsored exchange traded fund QATR declined 1.06%; whereas Masraf Al Rayan-sponsored QETF gained 1.18%.
The Qatar Stock Exchange continued to remain under the bearish spell for the second day on Monday, dropping more than 109 points, mainly dragged by banking and industrials equities.
Strong selling pressure from Gulf and domestic funds drove the 20-stock Qatar Index down 1.1% to 9,832.68 points.
Doha Bank-sponsored exchange traded fund QATR declined 1.06%; whereas Masraf Al Rayan-sponsored QETF gained 1.18%.
Uber Is Said in Talks to Acquire Dubai Ride Hailing Firm Careem - Bloomberg
Uber Is Said in Talks to Acquire Dubai Ride Hailing Firm Careem - Bloomberg:
Uber Technologies Inc. is in discussions to buy its Dubai-based rival Careem Networks FZ as the ride-hailing giant expands in the Middle East, people familiar with the matter said.
A deal could value Careem at $2 billion to $2.5 billion, the people said, asking not to be identified because the talks are private. Negotiations are ongoing and Careem’s management is working to convince the firm’s shareholders of the merits of a deal, the people said. No final decisions have been made, and the companies may decide against the transaction, they said.
“We believe the consumer internet opportunity in the region is massive and untapped,” Careem said in an emailed statement. “In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”
Uber Technologies Inc. is in discussions to buy its Dubai-based rival Careem Networks FZ as the ride-hailing giant expands in the Middle East, people familiar with the matter said.
A deal could value Careem at $2 billion to $2.5 billion, the people said, asking not to be identified because the talks are private. Negotiations are ongoing and Careem’s management is working to convince the firm’s shareholders of the merits of a deal, the people said. No final decisions have been made, and the companies may decide against the transaction, they said.
“We believe the consumer internet opportunity in the region is massive and untapped,” Careem said in an emailed statement. “In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”
Turkey's Erdogan Got a Half-Billion Dollar Gift From Qatar - Bloomberg
Turkey's Erdogan Got a Half-Billion Dollar Gift From Qatar - Bloomberg:
Turkish President Recep Tayyip Erdogan has received a luxury jet worth about half a billion dollars from the emir of Qatar.
Erdogan confirmed receipt of the gift as he hit back at critics who’d been questioning whether it was actually paid for with taxpayer money. Turkey had showed interest in purchasing the aircraft when it was up for sale for around $500 million, Erdogan told reporters over the weekend, according to Hurriyet newspaper. But when Qatar’s ruler found out, he donated it to the Turkish presidency free of charge, Erdogan said.
Turkey’s political, military and economic relations with Qatar have improved dramatically as Ankara sided with the gas-rich Gulf state in its tussle with a regional alliance led by Saudi Arabia. Last month, Qatar’s ruler met Erdogan in Ankara and promised to invest $15 billion in the country to try and pull Turkey back from the brink of a financial crisis.
Turkish President Recep Tayyip Erdogan has received a luxury jet worth about half a billion dollars from the emir of Qatar.
Erdogan confirmed receipt of the gift as he hit back at critics who’d been questioning whether it was actually paid for with taxpayer money. Turkey had showed interest in purchasing the aircraft when it was up for sale for around $500 million, Erdogan told reporters over the weekend, according to Hurriyet newspaper. But when Qatar’s ruler found out, he donated it to the Turkish presidency free of charge, Erdogan said.
Turkey’s political, military and economic relations with Qatar have improved dramatically as Ankara sided with the gas-rich Gulf state in its tussle with a regional alliance led by Saudi Arabia. Last month, Qatar’s ruler met Erdogan in Ankara and promised to invest $15 billion in the country to try and pull Turkey back from the brink of a financial crisis.
Tesla (TSLA) Rival Lucid's Saudi Funding Is Ominous - Bloomberg
Tesla (TSLA) Rival Lucid's Saudi Funding Is Ominous - Bloomberg:
Monday’s big news in electric vehicles: Lucid Motors Inc. secured some funding, and from Saudi Arabia’s sovereign wealth fund, no less. That may sound like a cheap joke at rival Tesla Inc.’s expense; and, yes, that can happen when your CEO conducts corporate finance over Twitter. But few seemed to be laughing Monday morning, with Tesla’s stock dropping at first.
Superficially, Monday’s announcement of Saudi money going to a rival raises uncomfortable memories of Tesla’s bizarre take-private episode. But that fiasco is almost a month old, and we already suspected the sovereign wealth fund might invest $1 billion in Lucid.
More importantly, Lucid’s funding is a reminder that Tesla has a target on its back. Tesla is still a company that — despite the drama, lack of profits, and relatively puny vehicle production — is valued at almost $50 billion. That sort of thing tends to attract competition; indeed, realizing the electrified future Tesla foresees demands it.
Monday’s big news in electric vehicles: Lucid Motors Inc. secured some funding, and from Saudi Arabia’s sovereign wealth fund, no less. That may sound like a cheap joke at rival Tesla Inc.’s expense; and, yes, that can happen when your CEO conducts corporate finance over Twitter. But few seemed to be laughing Monday morning, with Tesla’s stock dropping at first.
Superficially, Monday’s announcement of Saudi money going to a rival raises uncomfortable memories of Tesla’s bizarre take-private episode. But that fiasco is almost a month old, and we already suspected the sovereign wealth fund might invest $1 billion in Lucid.
More importantly, Lucid’s funding is a reminder that Tesla has a target on its back. Tesla is still a company that — despite the drama, lack of profits, and relatively puny vehicle production — is valued at almost $50 billion. That sort of thing tends to attract competition; indeed, realizing the electrified future Tesla foresees demands it.
Dubai inflation flat in August, housing deflation accelerates | ZAWYA MENA Edition
Dubai inflation flat in August, housing deflation accelerates | ZAWYA MENA Edition:
The Dubai Statistics Center released the following August consumer price data for the Gulf Arab emirate.
DUBAI CONSUMER INFLATION 18-Aug 18-Jul 17-Aug pct change month/month 0.2 -0.1 0.2 change year/year 2.2 2.2 0.8
NOTE - Housing and utility costs fell 3.6 percent from a year earlier in August, after a 3.2 percent drop in July and a 2.6 percent decline in June.
Food and beverage prices climbed 3.3 percent while transport price inflation rose to 18.5 percent, partly because of higher petrol prices compared to a year ago.
The Dubai Statistics Center released the following August consumer price data for the Gulf Arab emirate.
DUBAI CONSUMER INFLATION 18-Aug 18-Jul 17-Aug pct change month/month 0.2 -0.1 0.2 change year/year 2.2 2.2 0.8
NOTE - Housing and utility costs fell 3.6 percent from a year earlier in August, after a 3.2 percent drop in July and a 2.6 percent decline in June.
Food and beverage prices climbed 3.3 percent while transport price inflation rose to 18.5 percent, partly because of higher petrol prices compared to a year ago.
UAE free zones will need to up their game to retain tenants, says expert | ZAWYA MENA Edition
UAE free zones will need to up their game to retain tenants, says expert | ZAWYA MENA Edition:
Free zone authorities in the United Arab Emirates (UAE) will need to build higher-value networks to justify their higher expense as many of their regulatory and other benefits are stripped back, according to an expert.
Discussing a new report on Special Economic Zones published by consultancy firm Oliver Wyman earlier this month, partner Anush Vats told Zawya that many of the '40-plus' free zones in the country have been developed around advantages such as allowing 100 percent foreign ownership and exemption from certain labour laws, and focussed more on property than industry development.
"To be honest, my sense has always been that the UAE experiment started, quite rightly, by looking at the regulatory incentives, as most countries do, but then it got somewhat distracted into a real estate play," he said in a phone interview.
Free zone authorities in the United Arab Emirates (UAE) will need to build higher-value networks to justify their higher expense as many of their regulatory and other benefits are stripped back, according to an expert.
Discussing a new report on Special Economic Zones published by consultancy firm Oliver Wyman earlier this month, partner Anush Vats told Zawya that many of the '40-plus' free zones in the country have been developed around advantages such as allowing 100 percent foreign ownership and exemption from certain labour laws, and focussed more on property than industry development.
"To be honest, my sense has always been that the UAE experiment started, quite rightly, by looking at the regulatory incentives, as most countries do, but then it got somewhat distracted into a real estate play," he said in a phone interview.
Abu Dhabi's Mubadala to sell 25 pct of Spain's Cepsa in IPO | Reuters
Abu Dhabi's Mubadala to sell 25 pct of Spain's Cepsa in IPO | Reuters:
Abu Dhabi state investor Mubadala said on Monday it plans to sell a 25 percent stake in Spanish energy company Cepsa in an initial public offer on the Spanish stock exchange in the fourth quarter of 2018.
The listing will provide Cepsa with wider access to capital markets and increase its financial flexibility, Mubadala said in a statement.
Morgan Stanley, Bank of America Merrill Lynch, Citigroup and Santander are joint global coordinators for the deal, according to a term sheet seen by Reuters.
Abu Dhabi state investor Mubadala said on Monday it plans to sell a 25 percent stake in Spanish energy company Cepsa in an initial public offer on the Spanish stock exchange in the fourth quarter of 2018.
The listing will provide Cepsa with wider access to capital markets and increase its financial flexibility, Mubadala said in a statement.
Morgan Stanley, Bank of America Merrill Lynch, Citigroup and Santander are joint global coordinators for the deal, according to a term sheet seen by Reuters.
UPDATE 2-Egypt cancels debt auction as foreign investor appetite weakens | Reuters
UPDATE 2-Egypt cancels debt auction as foreign investor appetite weakens | Reuters:
Egypt cancelled a treasury bond auction on Monday, its third such move in as many weeks, as foreign investors cut their exposure to the country’s debt at a time of weak appetite globally for emerging market assets.
Data from the central bank showed it had called off the auction of 3- and 7-year treasury bonds worth 3.5 billion Egyptian pounds ($195.97 million). Two previous T-bond auctions, also for 3.5 billion pounds each, had been cancelled after bankers and investors demanded high yields on the debt.
“The finance ministry has been cancelling the bond auctions for the past few weeks due to higher yields than they are willing to accept,” said one banker at an Egyptian bank.
Egypt cancelled a treasury bond auction on Monday, its third such move in as many weeks, as foreign investors cut their exposure to the country’s debt at a time of weak appetite globally for emerging market assets.
Data from the central bank showed it had called off the auction of 3- and 7-year treasury bonds worth 3.5 billion Egyptian pounds ($195.97 million). Two previous T-bond auctions, also for 3.5 billion pounds each, had been cancelled after bankers and investors demanded high yields on the debt.
“The finance ministry has been cancelling the bond auctions for the past few weeks due to higher yields than they are willing to accept,” said one banker at an Egyptian bank.
UPDATE 1-Qatar's Hassad Food to merge Australia farm portfolio with Macquarie's - QNA | Reuters
UPDATE 1-Qatar's Hassad Food to merge Australia farm portfolio with Macquarie's - QNA | Reuters:
Qatar’s Hassad Food IPO-HASS.QA, the agricultural arm of the country’s sovereign wealth fund, is merging its Australian farm portfolio with that of Macquarie Group.
The investments will be incorporated into the Macquarie Infrastructure and Real Assets (MIRA) agricultural portfolio, according to a statement on the state-run Qatar News Agency.
The transition of the “significant majority of farms to MIRA’s agricultural portfolio” is expected to be completed before the end of the month, the statement said.
Qatar’s Hassad Food IPO-HASS.QA, the agricultural arm of the country’s sovereign wealth fund, is merging its Australian farm portfolio with that of Macquarie Group.
The investments will be incorporated into the Macquarie Infrastructure and Real Assets (MIRA) agricultural portfolio, according to a statement on the state-run Qatar News Agency.
The transition of the “significant majority of farms to MIRA’s agricultural portfolio” is expected to be completed before the end of the month, the statement said.
Saudi's PIF invests more than $1 billion in electric carmaker Lucid Motors | Reuters
Saudi's PIF invests more than $1 billion in electric carmaker Lucid Motors | Reuters:
Saudi Arabia’s Public Investment Fund (PIF) has agreed to invest more than $1 billion in Lucid Motors, adding to the emerging competition facing U.S. electric vehicle maker Tesla (TSLA.O).
The funding will enable Silicon Valley-based Lucid to achieve the commercial launch of its Lucid Air electric vehicle in 2020, PIF said as it announced the deal on Monday, joining Daimler-owned (DAIGn.DE) Mercedes, BMW (BMWG.DE) and Volkswagen’s (VOWG_p.DE) Audi and Porsche divisions in the battle for dominance in the market for premium battery cars.
The deal comes only a few weeks after Tesla founder Elon Musk said the Saudi sovereign wealth fund could help him to take his company private. Shares in Tesla initially dropped 2.2 percent on Monday’s announcement before recovering to positive territory.
Saudi Arabia’s Public Investment Fund (PIF) has agreed to invest more than $1 billion in Lucid Motors, adding to the emerging competition facing U.S. electric vehicle maker Tesla (TSLA.O).
The funding will enable Silicon Valley-based Lucid to achieve the commercial launch of its Lucid Air electric vehicle in 2020, PIF said as it announced the deal on Monday, joining Daimler-owned (DAIGn.DE) Mercedes, BMW (BMWG.DE) and Volkswagen’s (VOWG_p.DE) Audi and Porsche divisions in the battle for dominance in the market for premium battery cars.
The deal comes only a few weeks after Tesla founder Elon Musk said the Saudi sovereign wealth fund could help him to take his company private. Shares in Tesla initially dropped 2.2 percent on Monday’s announcement before recovering to positive territory.
Oil near flat as market weighs U.S.-China trade tensions, Iran sanctions | Reuters
Oil near flat as market weighs U.S.-China trade tensions, Iran sanctions | Reuters:
Oil prices were little changed on Monday as the market weighed deepening trade tension between the U.S. and China that is expected to dent global crude demand and potential supply tightening due to Iran sanctions.
Brent crude futures dipped 4 cents to settle at $78.05 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 8 cents to settle at $68.91 a barrel.
Top White House economic adviser Larry Kudlow said on Monday that he expected the United States would soon announce tariffs on an additional $200 billion worth of Chinese goods.
Oil prices were little changed on Monday as the market weighed deepening trade tension between the U.S. and China that is expected to dent global crude demand and potential supply tightening due to Iran sanctions.
Brent crude futures dipped 4 cents to settle at $78.05 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 8 cents to settle at $68.91 a barrel.
Top White House economic adviser Larry Kudlow said on Monday that he expected the United States would soon announce tariffs on an additional $200 billion worth of Chinese goods.
MIDEAST STOCKS-Visa law fails to lift Dubai but Saudi rebounds from low | Reuters
MIDEAST STOCKS-Visa law fails to lift Dubai but Saudi rebounds from low | Reuters:
Middle East stock markets mostly fell on Monday because of U.S.-China trade tensions, with Dubai sliding despite a new visa policy designed to support slumping real estate prices. Saudi Arabia’s market, however, rebounded after a five-day slide.
The United Arab Emirates announced visa rules allowing retired expatriates to stay in the country with renewable five-year visas, which could encourage them to buy homes or make other investments. The government also introduced lower electricity tariffs for the industrial sector.
But stock markets remained weak and the Dubai index lost 0.8 percent to a 32-month low. Blue chip Emaar Properties shed 1.7 percent and DAMAC Properties sank 2.9 percent.
Middle East stock markets mostly fell on Monday because of U.S.-China trade tensions, with Dubai sliding despite a new visa policy designed to support slumping real estate prices. Saudi Arabia’s market, however, rebounded after a five-day slide.
The United Arab Emirates announced visa rules allowing retired expatriates to stay in the country with renewable five-year visas, which could encourage them to buy homes or make other investments. The government also introduced lower electricity tariffs for the industrial sector.
But stock markets remained weak and the Dubai index lost 0.8 percent to a 32-month low. Blue chip Emaar Properties shed 1.7 percent and DAMAC Properties sank 2.9 percent.
MIDEAST STOCKS-Gulf markets hit by concern about new U.S. tariff risk | Reuters
MIDEAST STOCKS-Gulf markets hit by concern about new U.S. tariff risk | Reuters:
Gulf stocks opened lower on Monday as investors worried about reports the United States was preparing a new round of tariffs on Chinese imports.
Such a move would set up a possible escalation in the trade dispute between the two world powers.
After closing at a new six-month low on Sunday, stocks in Saudi Arabia failed to recover on Monday. Saudi Basic Industries Corp, the largest listed company in the Gulf, opened 1.7 percent down, with Al Rajhi Bank falling 0.9 percent.
Gulf stocks opened lower on Monday as investors worried about reports the United States was preparing a new round of tariffs on Chinese imports.
Such a move would set up a possible escalation in the trade dispute between the two world powers.
After closing at a new six-month low on Sunday, stocks in Saudi Arabia failed to recover on Monday. Saudi Basic Industries Corp, the largest listed company in the Gulf, opened 1.7 percent down, with Al Rajhi Bank falling 0.9 percent.
Oil Trades Near $69 as Signs of Higher Supply Offset Iran Fears - Bloomberg
Oil Trades Near $69 as Signs of Higher Supply Offset Iran Fears - Bloomberg:
Oil traded near $69 a barrel on signs of increased drilling by American producers and investor optimism that Saudi Arabia and Russia will fill in potential supply losses from Iran.
Futures were little changed in New York, after gaining 0.6 percent on Friday. Shale explorers added last week the most oil rigs in a month as a pipeline bottleneck in the busy U.S. Permian Basin is encouraging drilling in other areas. Meanwhile, Russian Energy Minister Alexander Novak and his Saudi Arabian counterpart Khalid al-Falih met in Moscow Saturday to confirm their willingness to stabilize prices and react to any changes in the market.
Oil traded near $69 a barrel on signs of increased drilling by American producers and investor optimism that Saudi Arabia and Russia will fill in potential supply losses from Iran.
Futures were little changed in New York, after gaining 0.6 percent on Friday. Shale explorers added last week the most oil rigs in a month as a pipeline bottleneck in the busy U.S. Permian Basin is encouraging drilling in other areas. Meanwhile, Russian Energy Minister Alexander Novak and his Saudi Arabian counterpart Khalid al-Falih met in Moscow Saturday to confirm their willingness to stabilize prices and react to any changes in the market.
U.S. aims to start LNG deliveries to Germany in four years: Bild | Reuters
U.S. aims to start LNG deliveries to Germany in four years: Bild | Reuters:
U.S. companies expect to begin delivering liquefied natural gas (LNG) to Germany in four years at the latest and will challenge Russia which now accounts for 60 percent of German gas imports, the deputy U.S. energy secretary told a German newspaper.
“U.S. liquefied natural gas is coming to Germany. The question is not if, but when,” Dan Brouillette told the mass circulation daily Bild in an interview published on Monday.
U.S. President Donald Trump in July accused Germany of being a “captive” of Russia due to its energy reliance and urged it to halt work on the $11 billion, Russian-led Nord Stream 2 gas pipeline that is to be built in the Baltic Sea.
U.S. companies expect to begin delivering liquefied natural gas (LNG) to Germany in four years at the latest and will challenge Russia which now accounts for 60 percent of German gas imports, the deputy U.S. energy secretary told a German newspaper.
“U.S. liquefied natural gas is coming to Germany. The question is not if, but when,” Dan Brouillette told the mass circulation daily Bild in an interview published on Monday.
U.S. President Donald Trump in July accused Germany of being a “captive” of Russia due to its energy reliance and urged it to halt work on the $11 billion, Russian-led Nord Stream 2 gas pipeline that is to be built in the Baltic Sea.
Saudi's Public Investment Fund says it closes $11 billion debut loan | Reuters
Saudi's Public Investment Fund says it closes $11 billion debut loan | Reuters:
Saudi Arabia’s Public Investment Fund said on Monday it had taken out an $11 billion international syndicated loan, the first commercial borrowing by the kingdom’s top sovereign wealth fund.
“This is the first step in incorporating loans and debt instruments into PIF’s long-term funding strategy,” the fund’s managing director Yasir al-Rumayyan said in a statement.
He added that the PIF would “develop into one of the most prominent users of banking services in the region”.
Saudi Arabia’s Public Investment Fund said on Monday it had taken out an $11 billion international syndicated loan, the first commercial borrowing by the kingdom’s top sovereign wealth fund.
“This is the first step in incorporating loans and debt instruments into PIF’s long-term funding strategy,” the fund’s managing director Yasir al-Rumayyan said in a statement.
He added that the PIF would “develop into one of the most prominent users of banking services in the region”.
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