Exclusive: Prince Khaled bin Alwaleed eyes IPO of KBW Investments as early as 2022 - The National:
Prince Khaled bin Alwaleed’s private equity and venture capital company KBW Investments may go public as soon as 2022, its chairman said.
“It’s an option for the next three to five years,” Prince Khaled said in an interview with The National. “As soon as we start diversifying a little more our portfolio from construction, architecture and engineering and obviously the real estate, we can package them into one attractive deal and then go public.”
The Dubai-based company, founded in 2013, has a diversified portfolio worth about Dh3.5 billion with investments in the finance, media, property, construction, engineering, manufacturing, automation and technology.
Thursday 18 April 2019
FAB shares surge further after hike in foreign ownership limit
FAB shares surge further after hike in foreign ownership limit:
Shares of First Abu Dhabi Bank (FAB) continue to witness an insatiable demand as traders resorted to buy regardless of the pricier entry levels. The fresh bout of buying has come about after the bank said it had received regulatory nods from the central bank and the market regulator to hike foreign ownership limit to 40 per cent.
“FAB looks a bit pricey especially compared to peers, so it doesn’t look like the best option,” said Issam Kassabieh, senior financial analyst at Menacorp. “But it is safe because the value is there and because of the MSCI advantage. Dubai Islamic Bank is also appealing.”
On Thursday, FAB shares closed 1.51 per cent higher at the day’s high of Dh16.16. FAB has gained 37.10 per cent in the past year, outperforming the wider ADX index, which gained 18.71 per cent in the same period. Analysts expect shares to surge to Dh18.
Shares of First Abu Dhabi Bank (FAB) continue to witness an insatiable demand as traders resorted to buy regardless of the pricier entry levels. The fresh bout of buying has come about after the bank said it had received regulatory nods from the central bank and the market regulator to hike foreign ownership limit to 40 per cent.
“FAB looks a bit pricey especially compared to peers, so it doesn’t look like the best option,” said Issam Kassabieh, senior financial analyst at Menacorp. “But it is safe because the value is there and because of the MSCI advantage. Dubai Islamic Bank is also appealing.”
On Thursday, FAB shares closed 1.51 per cent higher at the day’s high of Dh16.16. FAB has gained 37.10 per cent in the past year, outperforming the wider ADX index, which gained 18.71 per cent in the same period. Analysts expect shares to surge to Dh18.
Why #SaudiArabia needs dollars to kick its oil habit
Why Saudi Arabia needs dollars to kick its oil habit:
The major headline out of Saudi Arabia last month was that the country's big state-owned oil company, Saudi Aramco, bought 70 percent of the country's big state-owned petrochemical company, the Saudi Basic Industries Corporation. ("Sabic," for short.) What's more, they carried out the purchase in U.S. dollars.
Off the top of your head, that might sound weird: What's the point of one government-owned entity buying another? And why use U.S. dollars, as opposed to the riyal, Saudi Arabia's own currency?
The answer, basically, is that Saudi Arabia's economy is addicted to oil, they need to kick the habit, and they need U.S. dollars to do it.
The major headline out of Saudi Arabia last month was that the country's big state-owned oil company, Saudi Aramco, bought 70 percent of the country's big state-owned petrochemical company, the Saudi Basic Industries Corporation. ("Sabic," for short.) What's more, they carried out the purchase in U.S. dollars.
Off the top of your head, that might sound weird: What's the point of one government-owned entity buying another? And why use U.S. dollars, as opposed to the riyal, Saudi Arabia's own currency?
The answer, basically, is that Saudi Arabia's economy is addicted to oil, they need to kick the habit, and they need U.S. dollars to do it.
Three #Dubai IPOs in Works as Bourse Promotes Local Listings - Bloomberg
Three Dubai IPOs in Works as Bourse Promotes Local Listings - Bloomberg:
Three companies are preparing initial public offerings for trading on Dubai’s main stock exchange, the bourse said, potentially ending a 17-month IPO drought as it boosts efforts to entice local firms to list domestically rather than abroad.
“We are at different stages of discussions with potential issuers including three companies from the industry, oil and gas services as well as healthcare sectors,” exchange operator Dubai Financial Market PJSC said in an emailed response to questions. The timing of the deals is up to the companies, it said.
Liquidity in Dubai’s main stock market has slumped in the past four years as a drop in oil prices hampered economies across the Gulf, reducing trading volumes and slowing share sales. The last IPO on the DFM was in late 2017, when Emaar Development PJSC sold $1.3 billion in new shares. Last week, Dubai-based Network International raised 1.1 billion pounds ($1.4 billion) for a London listing.
Three companies are preparing initial public offerings for trading on Dubai’s main stock exchange, the bourse said, potentially ending a 17-month IPO drought as it boosts efforts to entice local firms to list domestically rather than abroad.
“We are at different stages of discussions with potential issuers including three companies from the industry, oil and gas services as well as healthcare sectors,” exchange operator Dubai Financial Market PJSC said in an emailed response to questions. The timing of the deals is up to the companies, it said.
Liquidity in Dubai’s main stock market has slumped in the past four years as a drop in oil prices hampered economies across the Gulf, reducing trading volumes and slowing share sales. The last IPO on the DFM was in late 2017, when Emaar Development PJSC sold $1.3 billion in new shares. Last week, Dubai-based Network International raised 1.1 billion pounds ($1.4 billion) for a London listing.
#Abraaj founder's extradition case adjourned, another former executive arrested: court official - Reuters
Abraaj founder's extradition case adjourned, another former executive arrested: court official - Reuters:
A case in a London court to extradite Arif Naqvi, the founder of collapsed private equity firm Abraaj, to the United States on fraud charges, was adjourned until April 26, a court official said on Thursday.
The official told Reuters that a former managing partner of Dubai-based Abraaj, Sev Vettivetpillai, had also been arrested and was facing a U.S. extradition request linked to the same charges.
Vettivetpillai could not be reached for a comment.
Whilst at Abraaj, Vettivetpillai was head of impact investing in a role that oversaw the firm’s troubled healthcare fund.
A case in a London court to extradite Arif Naqvi, the founder of collapsed private equity firm Abraaj, to the United States on fraud charges, was adjourned until April 26, a court official said on Thursday.
The official told Reuters that a former managing partner of Dubai-based Abraaj, Sev Vettivetpillai, had also been arrested and was facing a U.S. extradition request linked to the same charges.
Vettivetpillai could not be reached for a comment.
Whilst at Abraaj, Vettivetpillai was head of impact investing in a role that oversaw the firm’s troubled healthcare fund.
Schlumberger says US shale boom slowing | Financial Times
Schlumberger says US shale boom slowing | Financial Times:
Investment in the US shale oil industry continues to fall, production growth is slowing and the balance of spending is shifting to other parts of the world, the oilfield services group Schlumberger has said.
Paal Kibsgaard, chief executive, said he “the higher cost of capital, lower borrowing capacity, and investors looking for increased returns” in the US shale industry would mean that exploration and production companies would have to limit spending on new wells to what they could cover from their cash flows, cutting total expenditure by about 10 per cent.
In the rest of the world, however, investment is picking up, and is expected to rise by about 7-8 per cent this year, the company thinks.
Investment in the US shale oil industry continues to fall, production growth is slowing and the balance of spending is shifting to other parts of the world, the oilfield services group Schlumberger has said.
Paal Kibsgaard, chief executive, said he “the higher cost of capital, lower borrowing capacity, and investors looking for increased returns” in the US shale industry would mean that exploration and production companies would have to limit spending on new wells to what they could cover from their cash flows, cutting total expenditure by about 10 per cent.
In the rest of the world, however, investment is picking up, and is expected to rise by about 7-8 per cent this year, the company thinks.
Oil prices inch up on signs of tightening global supply - Reuters
Oil prices inch up on signs of tightening global supply - Reuters:
Oil futures edged up on Thursday as a drop in crude exports from OPEC’s de facto leader, Saudi Arabia, and a draw in U.S. drilling rigs and oil inventories supported prices.
Brent crude futures settled at $71.97 a barrel, up 35 cents from their last close and near Wednesday’s five-month high of $72.27. Brent saw a weekly gain of 0.6 percent, marking the fourth consecutive weekly rise for the international benchmark.
U.S. West Texas Intermediate (WTI) crude futures settled at $64.00 a barrel, up 24.00 cents. U.S. futures gained just under 0.2 percent for the week, its seventh weekly gain in a row.
Oil futures edged up on Thursday as a drop in crude exports from OPEC’s de facto leader, Saudi Arabia, and a draw in U.S. drilling rigs and oil inventories supported prices.
Brent crude futures settled at $71.97 a barrel, up 35 cents from their last close and near Wednesday’s five-month high of $72.27. Brent saw a weekly gain of 0.6 percent, marking the fourth consecutive weekly rise for the international benchmark.
U.S. West Texas Intermediate (WTI) crude futures settled at $64.00 a barrel, up 24.00 cents. U.S. futures gained just under 0.2 percent for the week, its seventh weekly gain in a row.
Abraaj founder's extradition case adjourned, another former executive arrested: court official - Reuters
Abraaj founder's extradition case adjourned, another former executive arrested: court official - Reuters:
A case in a London court to extradite Arif Naqvi, the founder of collapsed private equity firm Abraaj, to the United States on fraud charges, was adjourned until April 26, a court official said on Thursday.
The official told Reuters that a former managing partner of Dubai-based Abraaj, Sev Vettivetpillai, had also been arrested and was facing a U.S. extradition request linked to the same charges.
Vettivetpillai could not be reached for a comment.
A case in a London court to extradite Arif Naqvi, the founder of collapsed private equity firm Abraaj, to the United States on fraud charges, was adjourned until April 26, a court official said on Thursday.
The official told Reuters that a former managing partner of Dubai-based Abraaj, Sev Vettivetpillai, had also been arrested and was facing a U.S. extradition request linked to the same charges.
Vettivetpillai could not be reached for a comment.
Brexit stalls investments by sovereign wealth funds in Britain - Reuters
Brexit stalls investments by sovereign wealth funds in Britain - Reuters:
Britain has long been a favoured playground for sovereign wealth funds from around the world to snap up glitzy skyscrapers, banking stakes and posh department stores.
However, uncertainty over Britain’s tortuous exit from the European Union has put many new investments on ice, say sources close to the funds.
Last year, there was a sharp drop in investments by wealth funds via private equity, with deals falling more than two-thirds from 2017 to $3.82 billion (£2.94 billion), according to PitchBook, a data and research firm.
Britain has long been a favoured playground for sovereign wealth funds from around the world to snap up glitzy skyscrapers, banking stakes and posh department stores.
However, uncertainty over Britain’s tortuous exit from the European Union has put many new investments on ice, say sources close to the funds.
Last year, there was a sharp drop in investments by wealth funds via private equity, with deals falling more than two-thirds from 2017 to $3.82 billion (£2.94 billion), according to PitchBook, a data and research firm.
MIDEAST STOCKS- #AbuDhabi hits 13-year high, most Gulf markets rise - Reuters
MIDEAST STOCKS-Abu Dhabi hits 13-year high, most Gulf markets rise - Reuters:
Abu Dhabi's stock market rose sharply
on Thursday to reach its highest level in more than 13 years,
partly lifted by top lender First Abu Dhabi Bank which has
gained this week after regulatory approval to raise foreign
ownership limit of its shares.
The Abu Dhabi index rose 1.1 percent to its highest
since December 2005 with First Abu Dhabi Bank
increasing 1.5 percent. The bank has risen nearly 9 percent this
week after obtaining regulatory approval last week to increase
its foreign ownership limit to 40 percent from 25 percent.
First Abu Dhabi "could see significant $620 million of
inflows if the foreign ownership increase to 40 percent is
implemented before the last 10 trading days of April," Arqaam
Capital said in a note.
Abu Dhabi's stock market rose sharply
on Thursday to reach its highest level in more than 13 years,
partly lifted by top lender First Abu Dhabi Bank which has
gained this week after regulatory approval to raise foreign
ownership limit of its shares.
The Abu Dhabi index rose 1.1 percent to its highest
since December 2005 with First Abu Dhabi Bank
increasing 1.5 percent. The bank has risen nearly 9 percent this
week after obtaining regulatory approval last week to increase
its foreign ownership limit to 40 percent from 25 percent.
First Abu Dhabi "could see significant $620 million of
inflows if the foreign ownership increase to 40 percent is
implemented before the last 10 trading days of April," Arqaam
Capital said in a note.
OPEC+ Cuts Oil Production and Russia's Crude Exporters Win - Bloomberg
OPEC+ Cuts Oil Production and Russia's Crude Exporters Win - Bloomberg:
An alliance of countries that includes Russia is cutting oil production to end a global glut. One of the big winners: the nation’s own crude exporters.
The supply cuts from the so-called OPEC+ nations, coupled with U.S. sanctions on Venezuela and Iran, have reduced the amount of medium- and heavy-grade sour crude on the market. While Russia is part of the output cuts effort, exports of its medium-sour Urals crude -- the country’s biggest export grade -- are set to soar this month to an almost two-year high.
“The apparent lack of other alternative medium, sour grades is forcing Mediterranean and Northwest European buyers to rely increasingly on Urals,” consultants JBC Energy GmbH said in a report.
An alliance of countries that includes Russia is cutting oil production to end a global glut. One of the big winners: the nation’s own crude exporters.
The supply cuts from the so-called OPEC+ nations, coupled with U.S. sanctions on Venezuela and Iran, have reduced the amount of medium- and heavy-grade sour crude on the market. While Russia is part of the output cuts effort, exports of its medium-sour Urals crude -- the country’s biggest export grade -- are set to soar this month to an almost two-year high.
“The apparent lack of other alternative medium, sour grades is forcing Mediterranean and Northwest European buyers to rely increasingly on Urals,” consultants JBC Energy GmbH said in a report.
Aramco Hype Meets Reality as Bonds Drop After Unprecedented Sale - Bloomberg
Aramco Hype Meets Reality as Bonds Drop After Unprecedented Sale - Bloomberg:
The slump in Aramco bonds since its unprecedented debt sale this month makes one thing clear: you can’t take the Saudi out of Saudi Aramco.
Demand was so great, with bids topping $100 billion, that the energy giant managed to raise $12 billion at lower yields than the kingdom itself, which is uncommon in corporate bond markets. Investors are now paying the price for that discrepancy: all five maturities have fallen since trading started last week, in some cases by more than 2 cents on the dollar.
“We view the company as more of a Saudi risk rather than just an energy company,” said Patrick Wacker, a fund manager at Singapore-based UOB Asset Management Ltd. who dumped his holdings on the first day of trading to profit from the initial euphoria. He predicts the debt will keep falling until it trades at a yield premium to the Saudi government.
The slump in Aramco bonds since its unprecedented debt sale this month makes one thing clear: you can’t take the Saudi out of Saudi Aramco.
Demand was so great, with bids topping $100 billion, that the energy giant managed to raise $12 billion at lower yields than the kingdom itself, which is uncommon in corporate bond markets. Investors are now paying the price for that discrepancy: all five maturities have fallen since trading started last week, in some cases by more than 2 cents on the dollar.
“We view the company as more of a Saudi risk rather than just an energy company,” said Patrick Wacker, a fund manager at Singapore-based UOB Asset Management Ltd. who dumped his holdings on the first day of trading to profit from the initial euphoria. He predicts the debt will keep falling until it trades at a yield premium to the Saudi government.
Developers in #UAE must ensure supply-demand balance | ZAWYA MENA Edition
Developers in UAE must ensure supply-demand balance | ZAWYA MENA Edition:
Real estate developers in Abu Dhabi need to be 'careful' not to affect the demand-supply balance otherwise everyone will stand to lose, a top official from Mubadala Investment Company said.
"A developer should ensure a right balance between supply and demand. At the end of day, an oversupply will affect the pricing and all of us will lose. So, we have to coordinate among ourselves on right products that come into the market and complement each other," Ali Eid Al Mheiri, executive director of Real Estate and Infrastructure at Mubadala, said on the sidelines of Cityscape Abu Dhabi. The three-day event will conclude today.
He noted developers in Abu Dhabi have enough work to finish for next 5 to 10 years rather than expanding into newer areas.
Real estate developers in Abu Dhabi need to be 'careful' not to affect the demand-supply balance otherwise everyone will stand to lose, a top official from Mubadala Investment Company said.
"A developer should ensure a right balance between supply and demand. At the end of day, an oversupply will affect the pricing and all of us will lose. So, we have to coordinate among ourselves on right products that come into the market and complement each other," Ali Eid Al Mheiri, executive director of Real Estate and Infrastructure at Mubadala, said on the sidelines of Cityscape Abu Dhabi. The three-day event will conclude today.
He noted developers in Abu Dhabi have enough work to finish for next 5 to 10 years rather than expanding into newer areas.
Slowing growth creates challenges for #Saudi jobs market | ZAWYA MENA Edition
Slowing growth creates challenges for Saudi jobs market | ZAWYA MENA Edition:
Growth in Saudi Arabia’s economy will slow slightly this year, creating a challenge in terms of generating enough jobs for its citizens, an economist has told Zawya.
A new Economic Insight: Middle East Q1 2019 report published by accountancy body ICAEW (Institute of Chartered Accountants in England and Wales) and Oxford Economics said that it expects economic growth in the Kingdom to slow marginally in 2019 to 2 percent, down from 2.2 percent in 2019 as oil revenue falls due to Organization of the Petroleum Exporting Countries-mandated production cuts and “only a modest acceleration in non-oil activity” due to the challenging business environment.
The report said that although it expects growth in Saudi Arabia's non-oil sector to grow by 2.6 percent this year, supported both by an expansionary fiscal policy and reforms aimed at boosting the private sector, hiring activity remains “subdued”.
Growth in Saudi Arabia’s economy will slow slightly this year, creating a challenge in terms of generating enough jobs for its citizens, an economist has told Zawya.
A new Economic Insight: Middle East Q1 2019 report published by accountancy body ICAEW (Institute of Chartered Accountants in England and Wales) and Oxford Economics said that it expects economic growth in the Kingdom to slow marginally in 2019 to 2 percent, down from 2.2 percent in 2019 as oil revenue falls due to Organization of the Petroleum Exporting Countries-mandated production cuts and “only a modest acceleration in non-oil activity” due to the challenging business environment.
The report said that although it expects growth in Saudi Arabia's non-oil sector to grow by 2.6 percent this year, supported both by an expansionary fiscal policy and reforms aimed at boosting the private sector, hiring activity remains “subdued”.
Oil prices slip, but supply cuts support - Reuters
Oil prices slip, but supply cuts support - Reuters:
Oil prices eased on Thursday, although a decline in U.S. inventories, ongoing supply cuts from OPEC and its allies, and U.S. sanctions on Venezuela and Iran all limited losses.
Brent crude futures were at $71.49 a barrel at 0943 GMT, down 13 cents from their last close and further away from Wednesday’s five-month high of $72.27 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $63.71 per barrel, down 5 cents.
Oil prices eased on Thursday, although a decline in U.S. inventories, ongoing supply cuts from OPEC and its allies, and U.S. sanctions on Venezuela and Iran all limited losses.
Brent crude futures were at $71.49 a barrel at 0943 GMT, down 13 cents from their last close and further away from Wednesday’s five-month high of $72.27 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $63.71 per barrel, down 5 cents.
COLUMN-China keeps buying crude oil for storage, but difficulties loom: Russell - Reuters
COLUMN-China keeps buying crude oil for storage, but difficulties loom: Russell - Reuters:
China appears to have kept the flow of crude into strategic and commercial storage facilities at high levels in the first quarter, even as the price of oil climbed.
While China doesn’t release detailed statistics of its strategic petroleum reserve (SPR) and commercial stockpiles a rough idea can be gleaned by looking at refinery throughput numbers and the volume of domestic and imported crude.
Refineries processed 12.6 million barrels per day (bpd) of crude in the first quarter, according to official data released on Wednesday, up 4.4 percent from the three months to end-December, and also up by the same margin from the year earlier quarter.
China appears to have kept the flow of crude into strategic and commercial storage facilities at high levels in the first quarter, even as the price of oil climbed.
While China doesn’t release detailed statistics of its strategic petroleum reserve (SPR) and commercial stockpiles a rough idea can be gleaned by looking at refinery throughput numbers and the volume of domestic and imported crude.
Refineries processed 12.6 million barrels per day (bpd) of crude in the first quarter, according to official data released on Wednesday, up 4.4 percent from the three months to end-December, and also up by the same margin from the year earlier quarter.
MIDEAST STOCKS-Bank earnings boost #Qatar, most Gulf markets slip - Reuters
MIDEAST STOCKS-Bank earnings boost Qatar, most Gulf markets slip - Reuters:
Qatar’s stock market rose on Thursday, partly lifted by strong first-quarter earnings from two banks, while most major Middle Eastern markets declined.
Qatar’s index was up 0.2 percent with Qatar Islamic Bank increasing 1.4 percent and Qatar Commercial Bank rising 1.3 percent.
Qatar Islamic Bank and Qatar Commercial Bank posted 9.6 percent and 6.5 percent gains respectively in first-quarter net profits.
Qatar’s stock market rose on Thursday, partly lifted by strong first-quarter earnings from two banks, while most major Middle Eastern markets declined.
Qatar’s index was up 0.2 percent with Qatar Islamic Bank increasing 1.4 percent and Qatar Commercial Bank rising 1.3 percent.
Qatar Islamic Bank and Qatar Commercial Bank posted 9.6 percent and 6.5 percent gains respectively in first-quarter net profits.
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