Oil prices fall 1% on worries of pandemic surge in India | Reuters
Oil prices settled lower on Thursday, reversing early gains under pressure from rising COVID-19 infections in India and elsewhere although prices retained some support from a report a day earlier that U.S. crude inventories fell more sharply than expected.
Brent crude oil settled lower by 87 cents, or 1.3%, at $68.09 a barrel. West Texas Intermediate (WTI) U.S. crude futures dropped 92 cents, or 1.4%, to $64.71.
"When Saudi Arabia cut their crude selling price, it was a stark reminder that there are still pockets of danger of COVID that could impact demand," said Phil Flynn, a senior analyst at Price Futures Group in Chicago.
On Wednesday, both benchmarks hit their highest since mid-March before retreating to close little changed after two days of gains.
Thursday 6 May 2021
Sheikh Mohammed updates DIFC's founding law - new version expands free zone's 'strategic objectives' | Banking – Gulf News
Sheikh Mohammed updates DIFC's founding law - new version expands free zone's 'strategic objectives' | Banking – Gulf News
Dubai has updated the laws for the Dubai International Finance Centre, thus expanding the financial hub’s “strategic objectives”.
These objectives now also include “advancing sustainable economic growth for Dubai, developing and diversifying the economy and increasing the GDP contribution of the financial services sector, to promote investment into Dubai and to attract regional and international entities to establish themselves in DIFC as their principal place of business”.
The updated version thus replaces the Law No. (9) of 2004, which was the founding law of DIFC. It provides for more clarity on the duties and responsibilities of the President, the Governor, and entities in DIFC.
Law No. (5) of 2021 was issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE
It also ensures the free zone’s operational, financial and administrative independence that is “crucial for the continued growth and success”
Also, as important, the Dispute Resolution Authority that existed will operate as two separate bodies under the new Law in the form of the DIFC Courts and the Arbitration Institute. This will allow each “maximum opportunity for growth and proper allocation of resources in respect of their separate mandates”.
Dubai has updated the laws for the Dubai International Finance Centre, thus expanding the financial hub’s “strategic objectives”.
These objectives now also include “advancing sustainable economic growth for Dubai, developing and diversifying the economy and increasing the GDP contribution of the financial services sector, to promote investment into Dubai and to attract regional and international entities to establish themselves in DIFC as their principal place of business”.
The updated version thus replaces the Law No. (9) of 2004, which was the founding law of DIFC. It provides for more clarity on the duties and responsibilities of the President, the Governor, and entities in DIFC.
Law No. (5) of 2021 was issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, in his capacity as Ruler of Dubai, Vice President and Prime Minister of the UAE
WHAT HAS CHANGEDThe new Law allows the DIFC President to exempt certain federal and local government authorities, companies and other entities from any DIFC laws applicable to them when present in the Centre. In such cases, only UAE federal and local laws will apply to them.This is an important addition to allow the increasing number of federal and local government authorities in DIFC to be exempted from certain DIFC laws that were never intended to apply to them.
It also ensures the free zone’s operational, financial and administrative independence that is “crucial for the continued growth and success”
Also, as important, the Dispute Resolution Authority that existed will operate as two separate bodies under the new Law in the form of the DIFC Courts and the Arbitration Institute. This will allow each “maximum opportunity for growth and proper allocation of resources in respect of their separate mandates”.
MORE CHANGEThe revised Law also provides clarity on what DIFC establishments may do outside their physical premises in the Centre.They may supply services and products to customers outside DIFC, as long as they are primarily provided out of their premises in the Centre. Marketing and promotion of their activities can be conducted outside DIFC.
#Qatar finance minister arrested in rare crackdown | Financial Times
Qatar finance minister arrested in rare crackdown | Financial Times
Qatar’s finance minister has been arrested for questioning over allegations of abuse of power and the misuse of public funds, in an unprecedented move by authorities in the gas-rich Gulf state as part of its drive to boost transparency and clamp down on corruption.
The public prosecutor has opened an investigation into allegations of embezzlement by Ali Sharif al-Emadi, according to a statement carried by the state news agency.
Emadi, who assumed the post eight years ago and is one of the Gulf state’s most high-profile officials, has not been charged. The allegations relate to bribery and commissions relating to government contracts, said one person in Doha briefed on the investigation.
The investigation is focused on Emadi’s ministerial conduct, rather than the US-educated former banker’s other positions, the person added. Emadi is also a board member of the Qatar Investment Authority, the state’s influential sovereign wealth fund that manages about $300bn of assets, and chair of Qatar National Bank, the country’s largest lender.
Mubadala Keeping Pace With KKR as $29 Billion Deployed Last Year - Bloomberg
Mubadala Keeping Pace With KKR as $29 Billion Deployed Last Year - Bloomberg
Mubadala Investment Co. joined global investors like KKR & Co. in pouncing on opportunities presented by the pandemic, embarking on a record dealmaking spree while many of its peers among sovereign wealth funds hunkered down.
In a year that saw the worst oil-price crash in a generation, Mubadala delivered a record income for the Abu Dhabi government as it doubled down on a bet that sectors like technology and consumer goods will benefit the most from the economic recovery. Abu Dhabi’s second-largest wealth fund said on Thursday that new investments last year amounted to 108 billion dirhams ($29.4 billion).
With stakes in businesses from the retail unit of India’s Reliance Industries Ltd. to U.S. private equity firm Silver Lake and an ambition of doubling in size over the next decade, Mubadala stood out in seizing on dislocations in markets caused by the pandemic. State funds’ overall investments dropped almost 20% last year, according to New York-based adviser and data firm Global SWF.
Mubadala’s pace put it on par with KKR, which was the top spending private equity firm globally from the start of April through December last year, according to data compiled by Bloomberg. KKR invested a total of $29.5 billion in public and private markets in 2020.
“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” said Mubadala’s managing director and group chief executive officer, Khaldoon Al Mubarak.
The annual review published on Thursday showed Mubadala’s assets under management across the group reached 894 billion dirhams, from 853 billion dirhams in 2019. It also said five-year returns on its portfolio were 9.8%, dating to 2016.
The fund recently changed the way it reports its results. It eliminated categories such as annual revenue and net income, saying it would no longer release data “not relevant to a long-term investor” and would instead disclose a multi-year metric.
Technology, Health
Mubadala is plowing money into high-growth sectors such as technology and health care as the emirate looks to reduce its traditional reliance on oil and gas. Abu Dhabi, the capital of the United Arab Emirates, is home to almost 6% of the world’s oil reserves.
For 2020, Mubadala said its total comprehensive income rose to 72 billion dirhams from 53 billion dirhams in 2019, citing growth in its public equities portfolio and funds in addition to the company’s assets across various sectors. It said the UAE and the U.S. remain its largest investment destinations but that it also expanded in India, France, China and Russia.
Mubadala, which earlier this year overhauled its internal structure, also cashed out of some commitments, collecting 104 billion dirhams last year by monetizing mature assets and distributing investments locally and abroad.
“In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers,” Al Mubarak said.
Funds from Gulf states have been chasing overseas investments to reduce reliance on their oil-dependent home markets. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives and sees “lots of opportunities” in infrastructure over the next few years, especially in the U.S., its director general said in November.
Mubadala Investment Co. joined global investors like KKR & Co. in pouncing on opportunities presented by the pandemic, embarking on a record dealmaking spree while many of its peers among sovereign wealth funds hunkered down.
In a year that saw the worst oil-price crash in a generation, Mubadala delivered a record income for the Abu Dhabi government as it doubled down on a bet that sectors like technology and consumer goods will benefit the most from the economic recovery. Abu Dhabi’s second-largest wealth fund said on Thursday that new investments last year amounted to 108 billion dirhams ($29.4 billion).
With stakes in businesses from the retail unit of India’s Reliance Industries Ltd. to U.S. private equity firm Silver Lake and an ambition of doubling in size over the next decade, Mubadala stood out in seizing on dislocations in markets caused by the pandemic. State funds’ overall investments dropped almost 20% last year, according to New York-based adviser and data firm Global SWF.
Mubadala’s pace put it on par with KKR, which was the top spending private equity firm globally from the start of April through December last year, according to data compiled by Bloomberg. KKR invested a total of $29.5 billion in public and private markets in 2020.
“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” said Mubadala’s managing director and group chief executive officer, Khaldoon Al Mubarak.
The annual review published on Thursday showed Mubadala’s assets under management across the group reached 894 billion dirhams, from 853 billion dirhams in 2019. It also said five-year returns on its portfolio were 9.8%, dating to 2016.
The fund recently changed the way it reports its results. It eliminated categories such as annual revenue and net income, saying it would no longer release data “not relevant to a long-term investor” and would instead disclose a multi-year metric.
Technology, Health
Mubadala is plowing money into high-growth sectors such as technology and health care as the emirate looks to reduce its traditional reliance on oil and gas. Abu Dhabi, the capital of the United Arab Emirates, is home to almost 6% of the world’s oil reserves.
For 2020, Mubadala said its total comprehensive income rose to 72 billion dirhams from 53 billion dirhams in 2019, citing growth in its public equities portfolio and funds in addition to the company’s assets across various sectors. It said the UAE and the U.S. remain its largest investment destinations but that it also expanded in India, France, China and Russia.
Mubadala, which earlier this year overhauled its internal structure, also cashed out of some commitments, collecting 104 billion dirhams last year by monetizing mature assets and distributing investments locally and abroad.
“In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers,” Al Mubarak said.
Funds from Gulf states have been chasing overseas investments to reduce reliance on their oil-dependent home markets. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives and sees “lots of opportunities” in infrastructure over the next few years, especially in the U.S., its director general said in November.
#Qatar Orders Arrest of Finance Minister Over Misuse of Funds - Bloomberg
Qatar Orders Arrest of Finance Minister Over Misuse of Funds - Bloomberg
Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over an alleged abuse of power and misuse of public funds, state-run Qatar News Agency reported.
Al-Emadi was named finance minister a day after Sheikh Tamim bin Hamad Al Thani took over leadership of the country in June 2013, and has held the role since. The prosecutor has launched an investigation, QNA said on Thursday. No further details were immediately available.
The arrest was unusual, because allegations of criminal conduct by senior state officials or members of ruling families in the Gulf are typically addressed behind closed doors. Saudi Arabian Crown Prince Mohammed bin Salman’s declared anti-corruption drive in 2017, which targeted royals and businesspeople, was an exception.
Still, Qatar’s dollar bonds held on to most of their earlier gains following the news, with the yield on the security due 2050 down about 4 basis points to 3.4%. The country’s stock market has closed for the weekend.
Al-Emadi had been a stalwart of Qatar’s financial system, helping to transform Qatar National Bank from a local champion into the region’s biggest lender as its chief executive from 2007 to 2013. He currently serves as chairman of the bank’s board, is president of the executive board of Qatar Airways, and is also on the board of Qatar Investment Authority, the country’s sovereign wealth fund.
More recently, amid speculation that Al-Emadi had fallen out of favor, he was replaced as chairman of the Qatar Financial Centre -- a platform through which most foreign financial firms working in the country are registered and among agencies that encourage foreign investment.
Al Emadi has been regarded as a budget-conscious finance chief, reluctant to raise excess debt even though Qatar’s bond yields are among the lowest in developing economies. At the same time, he’s overseen heavy spending in preparation for the 2022 FIFA World Cup that Qatar is to host. Bloomberg Intelligence estimates the country will plow $300 billion into infrastructure projects ahead of the soccer tournament.
Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over an alleged abuse of power and misuse of public funds, state-run Qatar News Agency reported.
Al-Emadi was named finance minister a day after Sheikh Tamim bin Hamad Al Thani took over leadership of the country in June 2013, and has held the role since. The prosecutor has launched an investigation, QNA said on Thursday. No further details were immediately available.
The arrest was unusual, because allegations of criminal conduct by senior state officials or members of ruling families in the Gulf are typically addressed behind closed doors. Saudi Arabian Crown Prince Mohammed bin Salman’s declared anti-corruption drive in 2017, which targeted royals and businesspeople, was an exception.
Still, Qatar’s dollar bonds held on to most of their earlier gains following the news, with the yield on the security due 2050 down about 4 basis points to 3.4%. The country’s stock market has closed for the weekend.
Al-Emadi had been a stalwart of Qatar’s financial system, helping to transform Qatar National Bank from a local champion into the region’s biggest lender as its chief executive from 2007 to 2013. He currently serves as chairman of the bank’s board, is president of the executive board of Qatar Airways, and is also on the board of Qatar Investment Authority, the country’s sovereign wealth fund.
More recently, amid speculation that Al-Emadi had fallen out of favor, he was replaced as chairman of the Qatar Financial Centre -- a platform through which most foreign financial firms working in the country are registered and among agencies that encourage foreign investment.
Al Emadi has been regarded as a budget-conscious finance chief, reluctant to raise excess debt even though Qatar’s bond yields are among the lowest in developing economies. At the same time, he’s overseen heavy spending in preparation for the 2022 FIFA World Cup that Qatar is to host. Bloomberg Intelligence estimates the country will plow $300 billion into infrastructure projects ahead of the soccer tournament.
MIDEAST STOCKS IHC lifts #AbuDhabi as major Gulf markets end mixed | Reuters
MIDEAST STOCKS IHC lifts Abu Dhabi as major Gulf markets end mixed | Reuters
Major Gulf stock markets were mixed on Thursday, with the Abu Dhabi index rising after aquaculture firm International Holding Company reported a higher quarterly profit.
Abu Dhabi's index (.ADI) closed 0.6% higher with a weekly gain of 1.7%. International Holding (IHC.AD) was up 3.3%, boosting the index the most. The firm posted 1.5 billion dirhams of profit in the first quarter compared with 112.2 million dirhams a year earlier.
The company's board also approved acquiring stake in four companies through its units.
Emirates Telecommunications Group (ETISALAT.AD), which is set to raise 1 billion euros ($1.2 billion) in dual-tranche bonds on Thursday, added 0.8%.
Abu Dhabi's gains were capped by a 5.5% drop in Dana Gas (DANA.AD) as it traded ex-dividend.
The Dubai index (.DFMGI) was up 0.5% and ended the week with a 2.3% rise. Emirates NBD Bank (ENBD.DU) advanced 2.1% and Emaar Malls (EMAA.DU) added 1.6%.
Aramex (ARMX.DU) closed nearly 1% down. The Courier firm fell as much as 3.9% during the day after reporting a 32% decline in first-quarter profit to 46 million dirhams ($12.52 million)
Saudi Arabia's benchmark index (.TASI) was down 0.2% and fell 1.8% for the week.
Saudi Telecom (7010.SE) declined 1.8%, extending losses from Wednesday, when it traded ex-dividend.
Among the gainers, Al Rajhi Bank (1120.SE) and Sahara International Petrochemical (2310.SE) advanced 0.4% and 3.9%, respectively.
Reuters reported, citing sources, that Saudi Arabia is considering barring overseas pilgrims from the annual haj for the second year running as COVID-19 cases rise globally and worries grow about the emergence of new variants. read more
The Qatari index (.QSI) ended flat with Industries Qatar (IQCD.QA) gaining 0.7% and Commercial Bank (COMB.QA) losing 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended up 0.7%. Commercial International Bank Egypt (COMI.CA) led the gainers increasing 1.3%.
Major Gulf stock markets were mixed on Thursday, with the Abu Dhabi index rising after aquaculture firm International Holding Company reported a higher quarterly profit.
Abu Dhabi's index (.ADI) closed 0.6% higher with a weekly gain of 1.7%. International Holding (IHC.AD) was up 3.3%, boosting the index the most. The firm posted 1.5 billion dirhams of profit in the first quarter compared with 112.2 million dirhams a year earlier.
The company's board also approved acquiring stake in four companies through its units.
Emirates Telecommunications Group (ETISALAT.AD), which is set to raise 1 billion euros ($1.2 billion) in dual-tranche bonds on Thursday, added 0.8%.
Abu Dhabi's gains were capped by a 5.5% drop in Dana Gas (DANA.AD) as it traded ex-dividend.
The Dubai index (.DFMGI) was up 0.5% and ended the week with a 2.3% rise. Emirates NBD Bank (ENBD.DU) advanced 2.1% and Emaar Malls (EMAA.DU) added 1.6%.
Aramex (ARMX.DU) closed nearly 1% down. The Courier firm fell as much as 3.9% during the day after reporting a 32% decline in first-quarter profit to 46 million dirhams ($12.52 million)
Saudi Arabia's benchmark index (.TASI) was down 0.2% and fell 1.8% for the week.
Saudi Telecom (7010.SE) declined 1.8%, extending losses from Wednesday, when it traded ex-dividend.
Among the gainers, Al Rajhi Bank (1120.SE) and Sahara International Petrochemical (2310.SE) advanced 0.4% and 3.9%, respectively.
Reuters reported, citing sources, that Saudi Arabia is considering barring overseas pilgrims from the annual haj for the second year running as COVID-19 cases rise globally and worries grow about the emergence of new variants. read more
The Qatari index (.QSI) ended flat with Industries Qatar (IQCD.QA) gaining 0.7% and Commercial Bank (COMB.QA) losing 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) ended up 0.7%. Commercial International Bank Egypt (COMI.CA) led the gainers increasing 1.3%.
#Qatar finance minister arrested over alleged embezzlement -statement | Reuters
Qatar finance minister arrested over alleged embezzlement -statement | Reuters
Qatar Finance Minister Ali Sherif al-Emadi was arrested for questioning over allegations of embezzlement, abuse of power and crimes related to the public sector, a statement carried by state news agency QNA said on Thursday.
An investigation is underway, the statement added.
Emadi has been minister of finance in the wealthy Gulf Arab state since 2013 and sits on the board of its powerful $300 billion sovereign wealth fund, the Qatar Investment Authority.
He is also chairman of the board of directors of Qatar National Bank, the largest lender in the Middle East and Africa.
Emadi steered Qatar’s economic policies during the 2014-2015 oil price crash that prompted the tiny nation - as well as other Gulf countries - to accelerate plans to diversify the economy.
Qatar, a leading producer of liquefied natural gas, saw its economy shrink by 3.7% last year due to the coronavirus crisis and lower global energy demand.
The contraction however was smaller than expected and the smallest in the Gulf region, according to International Monetary Fund data.
Emadi was named as 2020’s best minister in the region by The Banker, an international financial magazine that organises an annual celebration of finance ministers.
Qatar, which next year will host the soccer World Cup, has invested heavily in infrastructure over the past few years ahead of the event, which means spending on major projects is set to decrease this year, the finance ministry has said.
Real gross domestic product is expected to grow 2.2% this year thanks to the rollout of vaccines, a gradual easing of coronavirus-related restrictions and an increase in oil demand and prices.
Qatar Finance Minister Ali Sherif al-Emadi was arrested for questioning over allegations of embezzlement, abuse of power and crimes related to the public sector, a statement carried by state news agency QNA said on Thursday.
FILE PHOTO: Qatar's Minister of Finance Ali Sherif Al Emadi speaks at the Qatar UK Business and InvestmentForum in London, Britain March 27, 2017 REUTERS/Neil Hall
An investigation is underway, the statement added.
Emadi has been minister of finance in the wealthy Gulf Arab state since 2013 and sits on the board of its powerful $300 billion sovereign wealth fund, the Qatar Investment Authority.
He is also chairman of the board of directors of Qatar National Bank, the largest lender in the Middle East and Africa.
Emadi steered Qatar’s economic policies during the 2014-2015 oil price crash that prompted the tiny nation - as well as other Gulf countries - to accelerate plans to diversify the economy.
Qatar, a leading producer of liquefied natural gas, saw its economy shrink by 3.7% last year due to the coronavirus crisis and lower global energy demand.
The contraction however was smaller than expected and the smallest in the Gulf region, according to International Monetary Fund data.
Emadi was named as 2020’s best minister in the region by The Banker, an international financial magazine that organises an annual celebration of finance ministers.
Qatar, which next year will host the soccer World Cup, has invested heavily in infrastructure over the past few years ahead of the event, which means spending on major projects is set to decrease this year, the finance ministry has said.
Real gross domestic product is expected to grow 2.2% this year thanks to the rollout of vaccines, a gradual easing of coronavirus-related restrictions and an increase in oil demand and prices.
Losses get steeper for #Dubai real estate fund Emirates REIT, totals $244.2m | Property – Gulf News
Losses get steeper for Dubai real estate fund Emirates REIT, totals $244.2m | Property – Gulf News
Losses at the Dubai-focussed real estate fund Emirates REIT widened during 2020, totaling $244.2 million from $26.3 million a year ago. This was brought on by steep revaluation changes on the fund’s portfolio, while rental income declines was another factor.
Rental income dropped 9.7 per cent to $64.5 million a year ago. But the fund managers will try to look at the positives in preparing for a possible turnaround. Through last year, it entered into 97 new leases while renewing 142 of them. Occupancy levels across its portfolio was at 69 per cent.
The portfolio includes the GEMS World Academy campus, Index Tower and Trident Grand Mall, among others. The combined value is at $690.3 million.
The results announcement was delayed by a week. Emirates REIT had informed that the delay was “due to the external auditors needing additional time to review the final property valuation reports from one of Emirates REIT’s valuers. Such reports are being produced later than usual as a result of one of the valuers being appointed late, following discussions with the DFSA.”
Losses at the Dubai-focussed real estate fund Emirates REIT widened during 2020, totaling $244.2 million from $26.3 million a year ago. This was brought on by steep revaluation changes on the fund’s portfolio, while rental income declines was another factor.
Rental income dropped 9.7 per cent to $64.5 million a year ago. But the fund managers will try to look at the positives in preparing for a possible turnaround. Through last year, it entered into 97 new leases while renewing 142 of them. Occupancy levels across its portfolio was at 69 per cent.
The portfolio includes the GEMS World Academy campus, Index Tower and Trident Grand Mall, among others. The combined value is at $690.3 million.
The results announcement was delayed by a week. Emirates REIT had informed that the delay was “due to the external auditors needing additional time to review the final property valuation reports from one of Emirates REIT’s valuers. Such reports are being produced later than usual as a result of one of the valuers being appointed late, following discussions with the DFSA.”
Mubadala Had Record Investments as Focus Shifts Away From Energy - Bloomberg
Mubadala Had Record Investments as Focus Shifts Away From Energy - Bloomberg
Abu Dhabi’s second-largest sovereign wealth fund invested a record amount of money during last year’s global crisis as its focus increasingly shifts into high-growth sectors such as technology and health-care.
Mubadala Investment Co. said new investments amounted to 108 billion dirhams ($29.4 billion) in areas such as technology, life sciences and consumer goods, according to its 2020 results published on Thursday. Its assets under management across the group increased to 894 billion dirhams, compared with 853 billion dirhams in 2019.
As the emirate doubles down on reducing its traditional reliance on oil and gas, Mubadala last year teamed up with private equity firm Silver Lake in technology and Indian conglomerate Reliance Industries Ltd.’s retail unit in consumer goods and telecommunications as part of an ongoing investment spree. Mubadala earlier this year said it overhauled its internal structure to help achieve its goal of doubling assets in the next decade.
“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” said the fund’s managing director and group chief executive officer, Khaldoon Al Mubarak. “In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers.”
Funds from Gulf states have been chasing overseas investments to reduce reliance on their oil-dependent home markets. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives and sees “lots of opportunities” in infrastructure over the next few years, especially in the U.S., its director general said in November.
For 2020, Mubadala said its total comprehensive income rose to 72 billion dirhams from 53 billion dirhams in 2019, citing growth in its public equities portfolio and funds in addition to the company’s assets across various sectors. It said the UAE and the U.S. remain its largest investment geographies but that it also expanded in India, France, China and Russia.
Mubadala realized 104 billion dirhams last year by monetizing mature assets and distributing investments locally and abroad.
Abu Dhabi’s second-largest sovereign wealth fund invested a record amount of money during last year’s global crisis as its focus increasingly shifts into high-growth sectors such as technology and health-care.
Mubadala Investment Co. said new investments amounted to 108 billion dirhams ($29.4 billion) in areas such as technology, life sciences and consumer goods, according to its 2020 results published on Thursday. Its assets under management across the group increased to 894 billion dirhams, compared with 853 billion dirhams in 2019.
As the emirate doubles down on reducing its traditional reliance on oil and gas, Mubadala last year teamed up with private equity firm Silver Lake in technology and Indian conglomerate Reliance Industries Ltd.’s retail unit in consumer goods and telecommunications as part of an ongoing investment spree. Mubadala earlier this year said it overhauled its internal structure to help achieve its goal of doubling assets in the next decade.
“We navigated our portfolio through the dramatic macro-economic decline of early 2020, and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” said the fund’s managing director and group chief executive officer, Khaldoon Al Mubarak. “In line with our long-term strategy, we increased our investments in sectors where we have high conviction, and with high performing fund managers.”
Funds from Gulf states have been chasing overseas investments to reduce reliance on their oil-dependent home markets. Kuwait’s $124 billion pension fund is reducing its allocation to stocks in favor of alternatives and sees “lots of opportunities” in infrastructure over the next few years, especially in the U.S., its director general said in November.
For 2020, Mubadala said its total comprehensive income rose to 72 billion dirhams from 53 billion dirhams in 2019, citing growth in its public equities portfolio and funds in addition to the company’s assets across various sectors. It said the UAE and the U.S. remain its largest investment geographies but that it also expanded in India, France, China and Russia.
Mubadala realized 104 billion dirhams last year by monetizing mature assets and distributing investments locally and abroad.
Investcorp Is Said to Raise $1 Billion for North American Deals - Bloomberg
Investcorp Is Said to Raise $1 Billion for North American Deals - Bloomberg
Investcorp Holdings BSC has raised about $1 billion for its first private equity fund focused on North American assets, according to people familiar the matter.
The biggest private equity and alternative asset manager in the Middle East is set to complete a first close on the fund soon, and aims to eventually raise about $2 billion, the people said. The fund will focus on investing in areas including technology and data companies, along with supply chain and industrial services.
Among the fund’s backers are a Middle East sovereign wealth fund and large asset managers from the U.S. and Europe, the people said, declining to be named because the information isn’t public.
Bahrain-based Investcorp, which oversees about $34 billion, is raising more funds for specific uses as it looks to boost assets under management. It’s previously tended to book deals on its own balance sheet and sell them on to investors.
Set up in 1982, the money manager is already the Gulf’s largest private investor in U.S. real estate and has said it wants to boost its assets under management to $50 billion in the coming years. Abu Dhabi sovereign fund Mubadala in 2017 acquired a 20% stake in Investcorp, which has backed companies including Tiffany & Co. and Gucci Ltd.
Investcorp Holdings BSC has raised about $1 billion for its first private equity fund focused on North American assets, according to people familiar the matter.
The biggest private equity and alternative asset manager in the Middle East is set to complete a first close on the fund soon, and aims to eventually raise about $2 billion, the people said. The fund will focus on investing in areas including technology and data companies, along with supply chain and industrial services.
Among the fund’s backers are a Middle East sovereign wealth fund and large asset managers from the U.S. and Europe, the people said, declining to be named because the information isn’t public.
Bahrain-based Investcorp, which oversees about $34 billion, is raising more funds for specific uses as it looks to boost assets under management. It’s previously tended to book deals on its own balance sheet and sell them on to investors.
Set up in 1982, the money manager is already the Gulf’s largest private investor in U.S. real estate and has said it wants to boost its assets under management to $50 billion in the coming years. Abu Dhabi sovereign fund Mubadala in 2017 acquired a 20% stake in Investcorp, which has backed companies including Tiffany & Co. and Gucci Ltd.
#UAE's Etisalat to raise 1 bln euros with two-tranche bonds | Reuters
UAE's Etisalat to raise 1 bln euros with two-tranche bonds | Reuters
Abu Dhabi-based telecoms operator Etisalat is set to raise 1 billion euros ($1.2 billion) in dual-tranche bonds on Thursday, a document from one of the banks leading the deal showed.
The company plans to raise 500 million euros in seven-year notes and a further 500 million euros with a 12-year maturity, according to the document reviewed by Reuters.
The seven-year notes were being marketed at about 85 basis points over mid-swaps, with the 12-year tranche at about 110 bps over.
HSBC, BNP Paribas, First Abu Dhabi Bank and Societe Generale have been hired to arrange the transaction, which is expected to close later on Thursday.
Abu Dhabi-based telecoms operator Etisalat is set to raise 1 billion euros ($1.2 billion) in dual-tranche bonds on Thursday, a document from one of the banks leading the deal showed.
The company plans to raise 500 million euros in seven-year notes and a further 500 million euros with a 12-year maturity, according to the document reviewed by Reuters.
The seven-year notes were being marketed at about 85 basis points over mid-swaps, with the 12-year tranche at about 110 bps over.
HSBC, BNP Paribas, First Abu Dhabi Bank and Societe Generale have been hired to arrange the transaction, which is expected to close later on Thursday.
UPDATE 1- #AbuDhabi's Mubadala posts record annual income and investment | Reuters
UPDATE 1-Abu Dhabi's Mubadala posts record annual income and investment | Reuters
Abu Dhabi state investor Mubadala’s total income rose nearly 36% to a record high last year, driven by growth in its public equities portfolio and funds, while it accelerated investment during the COVID-19 pandemic.
“We navigated our portfolio through the dramatic macroeconomic decline of early 2020 and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” CEO Khaldoon al-Mubarak said.
Mubadala Investment Co invested 108 billion dirhams ($29 billion) of capital in 2020, the most ever in a single year.
Investments included 4.3 billion dirhams in Reliance Industries-owned Jio, 2.7 billion dirhams in private equity investor Silver Lake and 7.5 billion dirhams through partnerships with CVC, Citadel, iSquared Capital and Apax Partners.
Mubarak doubled down on growth sectors such as technology, life sciences and self-driving technology, while asset sales hit 104 billion dirhams as it exited from some of its mature assets.
The monetisations included a deal worth 16.7 billion dirhams through the sale of its 39% stake in plastics maker Borealis to OMV .
Abu Dhabi state investor Mubadala’s total income rose nearly 36% to a record high last year, driven by growth in its public equities portfolio and funds, while it accelerated investment during the COVID-19 pandemic.
“We navigated our portfolio through the dramatic macroeconomic decline of early 2020 and decided to accelerate the pace of our capital deployment, ending the year with record profit and growth,” CEO Khaldoon al-Mubarak said.
Mubadala Investment Co invested 108 billion dirhams ($29 billion) of capital in 2020, the most ever in a single year.
Investments included 4.3 billion dirhams in Reliance Industries-owned Jio, 2.7 billion dirhams in private equity investor Silver Lake and 7.5 billion dirhams through partnerships with CVC, Citadel, iSquared Capital and Apax Partners.
Mubarak doubled down on growth sectors such as technology, life sciences and self-driving technology, while asset sales hit 104 billion dirhams as it exited from some of its mature assets.
The monetisations included a deal worth 16.7 billion dirhams through the sale of its 39% stake in plastics maker Borealis to OMV .
Oil prices rise on drawdown in U.S. crude inventory | Reuters
Oil prices rise on drawdown in U.S. crude inventory | Reuters
Oil prices edged higher on Thursday, recouping early losses, as crude stockpiles in the United States, the world's largest oil consumer, fell more sharply than expected as refining output rose and exports surged.
Brent crude oil futures rose by 17 cents, or 0.3%, to $69.13 a barrel by 0643 GMT, and U.S. West Texas Intermediate (WTI) crude futures gained by 9 cents, or 0.1%, to $65.72 a barrel.
Both benchmarks hit their highest since mid-March on Wednesday, before retreating to end little changed following two days of gains.
Easing coronavirus restrictions in Europe have led to a pick-up in fuel demand, analysts from Citi said in a note.
Oil prices edged higher on Thursday, recouping early losses, as crude stockpiles in the United States, the world's largest oil consumer, fell more sharply than expected as refining output rose and exports surged.
Brent crude oil futures rose by 17 cents, or 0.3%, to $69.13 a barrel by 0643 GMT, and U.S. West Texas Intermediate (WTI) crude futures gained by 9 cents, or 0.1%, to $65.72 a barrel.
Both benchmarks hit their highest since mid-March on Wednesday, before retreating to end little changed following two days of gains.
Easing coronavirus restrictions in Europe have led to a pick-up in fuel demand, analysts from Citi said in a note.
Major Gulf stocks mixed in early trade, IHC lifts #AbuDhabi | Reuters
Major Gulf stocks mixed in early trade, IHC lifts Abu Dhabi | Reuters
Major Gulf stock markets were mixed in early trade on Thursday, with stocks in Saudi Arabia and Dubai witnessing a fall, while Abu Dhabi index gained after aquaculture firm International Holding Company reported a higher quarterly profit.
Saudi Arabia’s benchmark index was down 0.3% as Dr. Sulaiman Al-Habib Medical Services Group shed 0.7%.
Abdullah Al-Othaim Markets Company declined nearly 4% to be the second biggest drag on the index. The food retailer reported more than 40% decrease in quarterly profit to 57.7 million riyals ($15.39 million).
Separately, Reuters reported through sources that Saudi Arabia is considering barring overseas pilgrims from the annual haj for the second year running as COVID-19 cases rise globally and worries grow about the emergence of new variants.
Abu Dhabi’s index was up 0.3%. International Holding Company increased 3%, boosting the index the most. The firm posted 1.5 billion dirhams of profit in first quarter compared with 112.2 million dirhams a year earlier.
The company’s board also approved acquiring stake in four companies through its units.
However, Abu Dhabi’s gains were capped by a 5.8% drop in Dana Gas, which traded ex-dividend.
The Dubai index was down 0.3%. Courier firm Aramex shed as much as 3.9% after reporting 32% decline in first-quarter profit to 46 million dirahms ($12.52 million). Emaar Properties lost 0.5%.
The Qatari index edged up 0.1% with the Gulf’s largest lender Qatar National Bank gaining 0.3% and United Development adding 1.7%.
Major Gulf stock markets were mixed in early trade on Thursday, with stocks in Saudi Arabia and Dubai witnessing a fall, while Abu Dhabi index gained after aquaculture firm International Holding Company reported a higher quarterly profit.
Saudi Arabia’s benchmark index was down 0.3% as Dr. Sulaiman Al-Habib Medical Services Group shed 0.7%.
Abdullah Al-Othaim Markets Company declined nearly 4% to be the second biggest drag on the index. The food retailer reported more than 40% decrease in quarterly profit to 57.7 million riyals ($15.39 million).
Separately, Reuters reported through sources that Saudi Arabia is considering barring overseas pilgrims from the annual haj for the second year running as COVID-19 cases rise globally and worries grow about the emergence of new variants.
Abu Dhabi’s index was up 0.3%. International Holding Company increased 3%, boosting the index the most. The firm posted 1.5 billion dirhams of profit in first quarter compared with 112.2 million dirhams a year earlier.
The company’s board also approved acquiring stake in four companies through its units.
However, Abu Dhabi’s gains were capped by a 5.8% drop in Dana Gas, which traded ex-dividend.
The Dubai index was down 0.3%. Courier firm Aramex shed as much as 3.9% after reporting 32% decline in first-quarter profit to 46 million dirahms ($12.52 million). Emaar Properties lost 0.5%.
The Qatari index edged up 0.1% with the Gulf’s largest lender Qatar National Bank gaining 0.3% and United Development adding 1.7%.