Saudi Arabia’s Al Othaim Family Said to Plan IPO for Malls Unit - Bloomberg:
Saudi Arabia’s Al Othaim family plans to sell shares in its malls business in a deal that could value the company at between $1.5 billion and $2 billion, according to people familiar with the matter.
Othaim Investment Co., which operates malls and entertainment centers in the kingdom, appointed GIB Capital LLC to advise on the local initial public offering, the people said, asking not to be identified as the information is private. The sale may happen in the first half of 2021, the people said.
Final decisions haven’t been made and the company may decide not to proceed, the people said. Representatives for Al Othaim Holding and GIB didn’t immediately respond to requests for comment.
While the total value of the family’s assets isn’t clear, Al Othaim Holding’s stake in Abdullah Al Othaim Markets is worth about $766 million, according to data compiled by Bloomberg. The retail and grocery business is listed on the Saudi bourse with a market capitalization of about $2.8 billion.
Tuesday 21 July 2020
#UAE's EDGE to buy Lockheed stake in military maintenance company - Reuters
UAE's EDGE to buy Lockheed stake in military maintenance company - Reuters:
United Arab Emirates state defence conglomerate EDGE said on Tuesday it was taking full ownership of UAE military repair and maintenance company AMMROC by buying the 40% stake held by Lockheed Martin (LMT.N).
Abu Dhabi-based EDGE has entered into a conditional agreement to buy the stake from Lockheed Martin and its subsidiary Sikorsky, it said in a statement.
The value of the transaction was not disclosed.
United Arab Emirates state defence conglomerate EDGE said on Tuesday it was taking full ownership of UAE military repair and maintenance company AMMROC by buying the 40% stake held by Lockheed Martin (LMT.N).
Abu Dhabi-based EDGE has entered into a conditional agreement to buy the stake from Lockheed Martin and its subsidiary Sikorsky, it said in a statement.
The value of the transaction was not disclosed.
Oil prices up $1/bbl on virus vaccine hopes, EU stimulus deal - Reuters
Oil prices up $1/bbl on virus vaccine hopes, EU stimulus deal - Reuters:
Oil prices rose about $1 a barrel on Tuesday, hitting the highest in more than four months with a boost from a European Union stimulus deal and hopeful news about coronavirus vaccine trials.
Also supporting the market, U.S. crude oil and refined products inventories likely fell last week, a Reuters poll showed. [EIA/S]
Brent crude futures settled at $44.32 barrel, rising $1.04, or 2.4%. West Texas Intermediate (WTI) settled at $41.96 a barrel, gaining $1.15 cents, or 2.82%.
Prices were buoyed by an agreement among European Union leaders on a 750 billion euro ($859 billion) fund to prop up coronavirus-hit economies.
Oil prices rose about $1 a barrel on Tuesday, hitting the highest in more than four months with a boost from a European Union stimulus deal and hopeful news about coronavirus vaccine trials.
Also supporting the market, U.S. crude oil and refined products inventories likely fell last week, a Reuters poll showed. [EIA/S]
Brent crude futures settled at $44.32 barrel, rising $1.04, or 2.4%. West Texas Intermediate (WTI) settled at $41.96 a barrel, gaining $1.15 cents, or 2.82%.
Prices were buoyed by an agreement among European Union leaders on a 750 billion euro ($859 billion) fund to prop up coronavirus-hit economies.
Yas Holding looks to buy part of NMC's distribution business - sources | ZAWYA MENA Edition
Yas Holding looks to buy part of NMC's distribution business - sources | ZAWYA MENA Edition:
Abu Dhabi investment group Yas Holding is looking to buy a part of hospital operator NMC Health's distribution business, three sources told Reuters.
Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health after months of turmoil over its finances.
Shortly afterwards they launched sales processes for NMC's assets, which include the company's international fertility business, to raise funds and pay back creditors.
NMC Trading distributes a wide range of products including food, pharmaceuticals, medical equipment and consumables.
The administrators have split NMC Trading into six units, two of which make up about 70% of the business, said one of the sources, declining to be named as the matter is not public.
Abu Dhabi investment group Yas Holding is looking to buy a part of hospital operator NMC Health's distribution business, three sources told Reuters.
Administrators from Alvarez & Marsal were appointed in April to oversee NMC Health after months of turmoil over its finances.
Shortly afterwards they launched sales processes for NMC's assets, which include the company's international fertility business, to raise funds and pay back creditors.
NMC Trading distributes a wide range of products including food, pharmaceuticals, medical equipment and consumables.
The administrators have split NMC Trading into six units, two of which make up about 70% of the business, said one of the sources, declining to be named as the matter is not public.
#Qatar Investment Authority takes stake in vaccine-maker CureVac - Reuters
Qatar Investment Authority takes stake in vaccine-maker CureVac - Reuters:
German biotech company CureVac said Qatar Investment Authority (QIA) has taken an undisclosed stake in the firm as part of a $126 million financing round, the latest high-profile investor to come onboard ahead of a potential stock market listing.
Tuesday’s announcement is the fourth injection of funding in two months and comes just a day after British pharmaceutical company GSK bought a 10% stake in return for a $171 million investment.
The German government also made a $343 million investment in June in return for a 23% holding in the firm, taking the total investment from a private financing round to $640 million, CureVac said.
The Tuebingen-based company, which is backed by Microsoft billionaire Bill Gates, also secured a 75 million euro ($85.79 million) loan from the European Investment Bank earlier this month.
German biotech company CureVac said Qatar Investment Authority (QIA) has taken an undisclosed stake in the firm as part of a $126 million financing round, the latest high-profile investor to come onboard ahead of a potential stock market listing.
Tuesday’s announcement is the fourth injection of funding in two months and comes just a day after British pharmaceutical company GSK bought a 10% stake in return for a $171 million investment.
The German government also made a $343 million investment in June in return for a 23% holding in the firm, taking the total investment from a private financing round to $640 million, CureVac said.
The Tuebingen-based company, which is backed by Microsoft billionaire Bill Gates, also secured a 75 million euro ($85.79 million) loan from the European Investment Bank earlier this month.
Gulf Arabs Set to Borrow at Record Rates as Economies Weaken: S&P - Bloomberg
Gulf Arabs Set to Borrow at Record Rates as Economies Weaken: S&P - Bloomberg:
Gulf Arab economies will borrow a record amount this year to help cover budget deficits expected to add up to about $490 billion over the next three years, according to S&P Global Ratings.
For the five oil-reliant members of the Gulf Cooperation Council, the dual shock of the coronavirus pandemic and lower crude prices means sovereign balance sheets may “continue to deteriorate up until 2023,” analysts including Trevor Cullinan said in a report Monday. Debt will probably be used to finance about 60% of the central government fiscal shortfalls in 2020-2023, with asset drawdowns used to cover the rest.
S&P predicts GCC nations -- Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman -- will borrow about $100 billion and use up another $80 billion in government assets to cover this year’s financing requirement. Annual debt issuance will reach $70 billion by 2023 under the assumption that Saudi Arabia narrows its fiscal shortfall over the period.
Gulf Arab economies will borrow a record amount this year to help cover budget deficits expected to add up to about $490 billion over the next three years, according to S&P Global Ratings.
For the five oil-reliant members of the Gulf Cooperation Council, the dual shock of the coronavirus pandemic and lower crude prices means sovereign balance sheets may “continue to deteriorate up until 2023,” analysts including Trevor Cullinan said in a report Monday. Debt will probably be used to finance about 60% of the central government fiscal shortfalls in 2020-2023, with asset drawdowns used to cover the rest.
S&P predicts GCC nations -- Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Bahrain and Oman -- will borrow about $100 billion and use up another $80 billion in government assets to cover this year’s financing requirement. Annual debt issuance will reach $70 billion by 2023 under the assumption that Saudi Arabia narrows its fiscal shortfall over the period.
Middle East News: #Kuwait Bill to Boost Borrowing Meets Resistance - Bloomberg
Middle East News: Kuwait Bill to Boost Borrowing Meets Resistance - Bloomberg:
A draft law allowing Kuwait’s government to tap local and international debt markets is unlikely to be supported by lawmakers unless it makes a convincing case for how any borrowed money will be spent, according to a key member of parliament.
The Finance Ministry is trying to hammer out a compromise with lawmakers to help ease the passage of the highly contentious draft bill, which would allow it to issue debt of as much as 20 billion dinars ($65 billion). If passed by the house, deadlocked for years over the government’s efforts to borrow, the legislation would help Kuwait reduce the budget deficit and provide a much-needed liquidity boost.
But Safa Al-Hashem, the head of parliament’s finance and economic panel, on Monday questioned if the government has a plan for managing the new public debt or a road map for spending the amount it requested.
Meetings are scheduled for next week to discuss the bill, she said. Should it win committee approval, the legislation would be referred to the house for debate and a vote.
A draft law allowing Kuwait’s government to tap local and international debt markets is unlikely to be supported by lawmakers unless it makes a convincing case for how any borrowed money will be spent, according to a key member of parliament.
The Finance Ministry is trying to hammer out a compromise with lawmakers to help ease the passage of the highly contentious draft bill, which would allow it to issue debt of as much as 20 billion dinars ($65 billion). If passed by the house, deadlocked for years over the government’s efforts to borrow, the legislation would help Kuwait reduce the budget deficit and provide a much-needed liquidity boost.
But Safa Al-Hashem, the head of parliament’s finance and economic panel, on Monday questioned if the government has a plan for managing the new public debt or a road map for spending the amount it requested.
Meetings are scheduled for next week to discuss the bill, she said. Should it win committee approval, the legislation would be referred to the house for debate and a vote.
Emirates NBD receives approval to double foreign ownership limit - Arabianbusiness
Emirates NBD receives approval to double foreign ownership limit - Arabianbusiness:
Emirates NBD has received approvals to double its foreign ownership limit (FOL) from 20 percent to 40 percent.
In a note to the Dubai Financial Market (DFM) the emirate’s biggest bank revealed that “all necessary regulatory and internal approvals” to increase its FOL had been received.
“The bank has contacted Dubai Central Securities Depository to start the necessary procedures to activate the above mentioned increase in the Foreign Ownership Limit,” the statement said.
In September last year Emirates NBD raised the cap on foreign ownership from five percent to 20 percent.
Emirates NBD has received approvals to double its foreign ownership limit (FOL) from 20 percent to 40 percent.
In a note to the Dubai Financial Market (DFM) the emirate’s biggest bank revealed that “all necessary regulatory and internal approvals” to increase its FOL had been received.
“The bank has contacted Dubai Central Securities Depository to start the necessary procedures to activate the above mentioned increase in the Foreign Ownership Limit,” the statement said.
In September last year Emirates NBD raised the cap on foreign ownership from five percent to 20 percent.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
COVID-19 to further decrease #UAE home sales, rental prices - Moody's | ZAWYA MENA Edition
COVID-19 to further decrease UAE home sales, rental prices - Moody's | ZAWYA MENA Edition:
The real-estate sector in the UAE is reeling from the dual economic impacts of coronavirus and the oil price decline, eroding credit quality for most.
The sector, which had already slowed down significantly over the past five years, will see further decreases in home sales and rental prices over the coming 12 to 18 months, Credit rating agency Moody’s said in its July in-depth sector real estate report.
Dubai will feel the impacts particularly, due to the emirate’s reliance on tourism and transportation, it said.
The combination of the pandemic and the slump in oil prices will contribute to the erosion of the non-oil economy by impacting foreign investment and economic confidence.
Gross profit margins of homebuilders such as Emaar Properties and Damaac will continue to weaken as job losses and salary cuts curb buyer demand for new properties, with travel restrictions also reducing international demand.
The real-estate sector in the UAE is reeling from the dual economic impacts of coronavirus and the oil price decline, eroding credit quality for most.
The sector, which had already slowed down significantly over the past five years, will see further decreases in home sales and rental prices over the coming 12 to 18 months, Credit rating agency Moody’s said in its July in-depth sector real estate report.
Dubai will feel the impacts particularly, due to the emirate’s reliance on tourism and transportation, it said.
The combination of the pandemic and the slump in oil prices will contribute to the erosion of the non-oil economy by impacting foreign investment and economic confidence.
Gross profit margins of homebuilders such as Emaar Properties and Damaac will continue to weaken as job losses and salary cuts curb buyer demand for new properties, with travel restrictions also reducing international demand.
#UAE Asset Manager to Start ETF Trading in #Dubai and #AbuDhabi - Bloomberg
UAE Asset Manager to Start ETF Trading in Dubai and Abu Dhabi - Bloomberg:
The first exchange-traded fund in the United Arab Emirates accessible to investors both in Dubai and Abu Dhabi is expected to list next month.
The Chimera Umbrella Fund -- Chimera S&P UAE Shariah ETF will have two different share classes that will track a Shariah-compliant index compiled from stocks listed on the main exchanges in both emirates. It will be managed by Abu Dhabi-based Chimera Capital LLC.
While Gulf investors can chose between five different ETFs in Saudi Arabia and Qatar, two introduced in the UAE have been delisted since 2017. Exchanges in the country are stepping up efforts to diversify their product offerings and boost trading activity as the economy battles to recover from lower oil prices and the impact of the coronavirus.
“Once all regulatory approvals are granted, the fund could be listed in the local exchanges in the first half of August,” said Seif Fikry, the chief executive officer of Chimera Capital. It will have an initial size of about 2 million dirhams ($544,000) that is expected to grow post-listing, he said.
The first exchange-traded fund in the United Arab Emirates accessible to investors both in Dubai and Abu Dhabi is expected to list next month.
The Chimera Umbrella Fund -- Chimera S&P UAE Shariah ETF will have two different share classes that will track a Shariah-compliant index compiled from stocks listed on the main exchanges in both emirates. It will be managed by Abu Dhabi-based Chimera Capital LLC.
While Gulf investors can chose between five different ETFs in Saudi Arabia and Qatar, two introduced in the UAE have been delisted since 2017. Exchanges in the country are stepping up efforts to diversify their product offerings and boost trading activity as the economy battles to recover from lower oil prices and the impact of the coronavirus.
“Once all regulatory approvals are granted, the fund could be listed in the local exchanges in the first half of August,” said Seif Fikry, the chief executive officer of Chimera Capital. It will have an initial size of about 2 million dirhams ($544,000) that is expected to grow post-listing, he said.
MIDEAST STOCKS- #Dubai shares rise on Emirates NBD boost; other markets mixed | Nasdaq
MIDEAST STOCKS-Dubai shares rise on Emirates NBD boost; other markets mixed | Nasdaq:
The Dubai stock market rose sharply on Tuesday, buoyed by gains in its top bank Emirates NBD's ENBD.DU shares after receiving regulatory nod to increase foreign ownership limit.
Dubai's main share index .DFMGI advanced 1.2%, with Emirates NBD Bank jumping 4.4%, a day after it received regulatory approvals to increase foreign ownership limit to 40% from 20%.
In the previous session, the lender retreated 1.9% following a 58% slide in second-quarter profit to 2 billion dirhams ($544.54 million), compared to 4.74 billion dirhams year ago.
Emirates NBD said its impairment allowances had increased to 4.2 billion dirhams by June-end from 2.6 billion in the first quarter, with an annualised net cost of risk of 172 basis points.
Saudi Arabia's benchmark index .TASI edged up 0.2%. Al Rajhi Bank 1120.SE gained 0.4%, while Etihad Etisalat 7020.SE advanced 3.5% after the telecoms firm reported an increase in second-quarter profit.
The Dubai stock market rose sharply on Tuesday, buoyed by gains in its top bank Emirates NBD's ENBD.DU shares after receiving regulatory nod to increase foreign ownership limit.
Dubai's main share index .DFMGI advanced 1.2%, with Emirates NBD Bank jumping 4.4%, a day after it received regulatory approvals to increase foreign ownership limit to 40% from 20%.
In the previous session, the lender retreated 1.9% following a 58% slide in second-quarter profit to 2 billion dirhams ($544.54 million), compared to 4.74 billion dirhams year ago.
Emirates NBD said its impairment allowances had increased to 4.2 billion dirhams by June-end from 2.6 billion in the first quarter, with an annualised net cost of risk of 172 basis points.
Saudi Arabia's benchmark index .TASI edged up 0.2%. Al Rajhi Bank 1120.SE gained 0.4%, while Etihad Etisalat 7020.SE advanced 3.5% after the telecoms firm reported an increase in second-quarter profit.
Oil ticks up on vaccine hopes, EU stimulus deal - Reuters
Oil ticks up on vaccine hopes, EU stimulus deal - Reuters:
Oil prices edged higher on Tuesday, helped by positive news about vaccine trials and a European Union stimulus deal but gains were capped by fears that new lockdowns could derail a recovery in demand.
Benchmark Brent crude was up 31 cents at $43.59 by 0743 GMT, while West Texas Intermediate (WTI) gained 19 cents to $41.00. The closing prices of both have traded within a $2 channel so far in July.
The prices were buoyed by an agreement among European Union leaders on a 750 billion euro ($859 billion) fund to prop up their coronavirus-throttled economies, lifting prospects for fuel demand.
The deal allows the European Commission to raise billions of euros on capital markets on behalf of all 27 states, an unprecedented act of solidarity in almost seven decades of European integration.
Oil prices edged higher on Tuesday, helped by positive news about vaccine trials and a European Union stimulus deal but gains were capped by fears that new lockdowns could derail a recovery in demand.
Benchmark Brent crude was up 31 cents at $43.59 by 0743 GMT, while West Texas Intermediate (WTI) gained 19 cents to $41.00. The closing prices of both have traded within a $2 channel so far in July.
The prices were buoyed by an agreement among European Union leaders on a 750 billion euro ($859 billion) fund to prop up their coronavirus-throttled economies, lifting prospects for fuel demand.
The deal allows the European Commission to raise billions of euros on capital markets on behalf of all 27 states, an unprecedented act of solidarity in almost seven decades of European integration.
Gulf economies seen shrinking sharply in 2020, to pick up in 2021: Reuters poll - Reuters
Gulf economies seen shrinking sharply in 2020, to pick up in 2021: Reuters poll - Reuters:
Economic activity in the Gulf will contract sharply this year before recovering in 2021, hit by the double shock of the coronavirus pandemic and an oil price crash, a quarterly Reuters poll showed on Tuesday.
Analysts in the July 7-20 poll see a deep economic contraction in the hydrocarbon-producing region this year as oil prices were hit on the supply and demand sides simultaneously.
Saudi Arabia’s GDP was seen shrinking 5.2% this year before rebounding to 3.1% growth next year. A similar poll conducted three months ago saw the region’s biggest economy and world’s largest oil exporter growing 1.0% in 2020 and 2.0% in 2021.
In March, a Saudi-Russian price war caused oil prices to plummet, and the Organization of the Petroleum Exporting Countries and its allies subsequently implemented output cuts.
Economic activity in the Gulf will contract sharply this year before recovering in 2021, hit by the double shock of the coronavirus pandemic and an oil price crash, a quarterly Reuters poll showed on Tuesday.
Analysts in the July 7-20 poll see a deep economic contraction in the hydrocarbon-producing region this year as oil prices were hit on the supply and demand sides simultaneously.
Saudi Arabia’s GDP was seen shrinking 5.2% this year before rebounding to 3.1% growth next year. A similar poll conducted three months ago saw the region’s biggest economy and world’s largest oil exporter growing 1.0% in 2020 and 2.0% in 2021.
In March, a Saudi-Russian price war caused oil prices to plummet, and the Organization of the Petroleum Exporting Countries and its allies subsequently implemented output cuts.