Most major Gulf bourses in red; Egypt outperforms | Reuters
Dubai’s main share index eased 0.1%, hit by a 0.4% fall in Emirates NBD and a 2.2% slide in budget airliner Air Arabia.
The Dubai Airshow, this year’s biggest aerospace trade show and a spectacle for business deals worth billions of dollars, will be held under capacity restrictions in November due to the coronavirus pandemic, its organiser said.
In Abu Dhabi, the index dropped 0.5%, weighed down by a 1.2% fall in the largest lender First Abu Dhabi Bank and a 1% decline in Abu Dhabi Commercial Bank.
Investment Corp of Dubai was the undisclosed investor who last week sold $300 million of shares in Abu Dhabi Commercial Bank, the third-largest lender in the United Arab Emirates, Reuters reported, citing two sources close to the deal.
The Qatari benchmark closed 0.2% lower, with Qatar Islamic Bank losing 0.4%.
The Gulf Arab state, which is hosting next year’s soccer World Cup, will only allow people fully vaccinated against COVID-19 to attend next year’s tournament and is in talks to secure one million doses in case global immunisation efforts lag, the prime minister said.
Saudi Arabia’s benchmark index, however, bucked the trend to conclude 0.6% higher. Al Rajhi Bank leapt 2.4%, while Saudi National Bank firmed 1.3%.
The kingdom’s ministry of industry will offer industrial licences that last five years instead of three to ensure the sustainability of the sector, Saudi state news agency (SPA) reported on Sunday.
Outside the Gulf, Egypt’s blue-chip index advanced 2.7%, ending four sessions of gains, as most of the stocks on the index were in positive territory including its top lender Commercial International Bank.
Egypt’s central bank kept its key interest rates unchanged during its monetary policy committee (MPC) meeting on Thursday, the bank said in a statement.
Egypt has some of the highest real interest rates in the world, which has helped to attract investment in treasuries but discouraged corporate borrowing.
Monday 21 June 2021
Mubadala’s Al Kaabi Seeks International, Regional Investors - Bloomberg video
Mubadala’s Al Kaabi Seeks International, Regional Investors - Bloomberg
Musabbeh Al Kaabi, chief executive officer of Mubadala’s UAE investments platform discusses investment strategies. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
New Giant #Saudi Pension Fund - Bloomberg video
New Giant Saudi Pension Fund - Bloomberg
Saudi Arabia is looking to rival the world's largest investors with the merger of two of its pension and insurance funds. Matthew Martin, Bloomberg News, discusses the $250 billion new entity. (Source: Bloomberg)
Oil May Hit $100 a Barrel Next Year on Demand Rebound, BofA Says - Bloomberg
Oil May Hit $100 a Barrel Next Year on Demand Rebound, BofA Says - Bloomberg
Oil may surge to $100 a barrel next year as travel demand rebounds, Bank of America Corp. said, the strongest call yet among major forecasters for a return to triple digits.
Global oil consumption will continue to outstrip supply in 2022 as the economic recovery from the pandemic boosts fuel consumption, while investment in new production is crimped by environmental concerns, the bank said in a report.
“There is plenty of pent-up oil demand ready to be unleashed,” said Francisco Blanch, the bank’s New York-based head of commodities research. Brent futures traded near $74 a barrel on Monday.
While other market-watchers, from trading house Trafigura Group to Goldman Sachs Group Inc., have already said that oil could reach $100 again in the right conditions, the prediction from Bank of America is the firmest to date.
Oil may surge to $100 a barrel next year as travel demand rebounds, Bank of America Corp. said, the strongest call yet among major forecasters for a return to triple digits.
Global oil consumption will continue to outstrip supply in 2022 as the economic recovery from the pandemic boosts fuel consumption, while investment in new production is crimped by environmental concerns, the bank said in a report.
“There is plenty of pent-up oil demand ready to be unleashed,” said Francisco Blanch, the bank’s New York-based head of commodities research. Brent futures traded near $74 a barrel on Monday.
While other market-watchers, from trading house Trafigura Group to Goldman Sachs Group Inc., have already said that oil could reach $100 again in the right conditions, the prediction from Bank of America is the firmest to date.
Tabby Buy Now Pay Later #Dubai Fintech Gets Debt Financing for Expansion - Bloomberg
Tabby Buy Now Pay Later Dubai Fintech Gets Debt Financing for Expansion - Bloomberg
A Dubai-based buy-now, pay-later company secured one of the largest debt facilities for a fintech startup in the Middle East and North Africa.
Underscoring the growing interest from international investors in the regional fintech sector, Silicon Valley-based Partners for Growth will provide $50 million in debt financing to tabby to help expand its business. The size of the facility may increase as the company becomes larger over time, according to a statement.
“tabby is one of the fastest growing companies in the MENA region and they have an attractive market opportunity ahead,” said Max Penel, investment director at PFG.
Just over half a year after a funding round led by Mubadala Capital and Hong Kong’s Arbor Ventures, tabby is among companies that are flourishing as the pandemic accelerates the shift toward online retail and digital payments. Buy-now, pay-later services allow customers to purchase goods and then pay for them in installments or after a certain period of time free of interest.
Saudi competitor Tamara recently raised $110 million in debt and equity financing from checkout.com in one of the region’s largest startup investments to date. Australia’s Zip Co. Ltd. said last month it was paying about $16 million to buy the shares it didn’t already own in Spotii, another major buy-now, pay-later player in the United Arab Emirates.
Tamara predicts the global buy-now, pay-later sector could grow 400% to reach $680 billion in transaction volumes by 2025.
Co-founded in 2019 by Hosam Arab, previously chief executive officer of online retail site Namshi, tabby has raised more than $30 million in funding from local and global investors. Over 2,000 brands, including Ikea and Adidas, use it to allow customers to purchase their goods, according to the company.
San Francisco-based PFG lends to emerging growth companies. Founded in 2004 by the former owners and managers of investment bank Hambrecht & Quist’s venture lending business, the company has partnered with over 200 growth companies across the globe.
Underscoring the growing interest from international investors in the regional fintech sector, Silicon Valley-based Partners for Growth will provide $50 million in debt financing to tabby to help expand its business. The size of the facility may increase as the company becomes larger over time, according to a statement.
“tabby is one of the fastest growing companies in the MENA region and they have an attractive market opportunity ahead,” said Max Penel, investment director at PFG.
Just over half a year after a funding round led by Mubadala Capital and Hong Kong’s Arbor Ventures, tabby is among companies that are flourishing as the pandemic accelerates the shift toward online retail and digital payments. Buy-now, pay-later services allow customers to purchase goods and then pay for them in installments or after a certain period of time free of interest.
Saudi competitor Tamara recently raised $110 million in debt and equity financing from checkout.com in one of the region’s largest startup investments to date. Australia’s Zip Co. Ltd. said last month it was paying about $16 million to buy the shares it didn’t already own in Spotii, another major buy-now, pay-later player in the United Arab Emirates.
Tamara predicts the global buy-now, pay-later sector could grow 400% to reach $680 billion in transaction volumes by 2025.
Co-founded in 2019 by Hosam Arab, previously chief executive officer of online retail site Namshi, tabby has raised more than $30 million in funding from local and global investors. Over 2,000 brands, including Ikea and Adidas, use it to allow customers to purchase their goods, according to the company.
San Francisco-based PFG lends to emerging growth companies. Founded in 2004 by the former owners and managers of investment bank Hambrecht & Quist’s venture lending business, the company has partnered with over 200 growth companies across the globe.
Oil prices firm on summer demand as Iran talks drag | Reuters
Oil prices firm on summer demand as Iran talks drag | Reuters
Oil prices edged higher on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
Brent crude for August gained 23 cents, or 0.3%, to $73.74 a barrel by 0825 GMT. U.S. West Texas Intermediate (WTI) crude for July was up 29 cents, or 0.4%, at $71.93 a barrel.
Both benchmarks have risen for the past four weeks on optimism over the pace of global COVID-19 vaccinations and expected pick-up in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs. read more
"Oil's underlying physical demand picture remains positive," said OANDA analyst Jeffrey Halley. "Despite the noise in financial markets, the real world is on the right track and will require increasing amounts of energy as it reopens."
Oil prices edged higher on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
Brent crude for August gained 23 cents, or 0.3%, to $73.74 a barrel by 0825 GMT. U.S. West Texas Intermediate (WTI) crude for July was up 29 cents, or 0.4%, at $71.93 a barrel.
Both benchmarks have risen for the past four weeks on optimism over the pace of global COVID-19 vaccinations and expected pick-up in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs. read more
"Oil's underlying physical demand picture remains positive," said OANDA analyst Jeffrey Halley. "Despite the noise in financial markets, the real world is on the right track and will require increasing amounts of energy as it reopens."
Arabtec Holding: #Dubai Court accepts petition to open bankruptcy proceedings | ZAWYA MENA Edition
Arabtec Holding: Dubai Court accepts petition to open bankruptcy proceedings | ZAWYA MENA Edition
The Dubai Court of the First Instance has accepted Arabtec Holding’s petition to open bankruptcy proceedings of the company and its subsidiaries. The court has also decided to appoint trustee for each entity.
Trustees have been appointed for the holding company, as well as six subsidiaries which are joining parties in the proceedings: Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co LLC, Arabtec Precast LLC, Arabtec ConstructionsLLC, Emirates Falcon Electromechanical Co . EFECO (L.L.C.).
“The court ordered each appointed trustee to publish the bankruptcy decision of each entity, review its debts, deposit a list and a record of its creditors, and conduct all the procedures stipulated under the Bankruptcy Law within 35 days from the date of the appointment notification,” Arabtec Holding notified the Dubai Financial Market.
Each trustee was also instructed to prepare an initial report on assets of each entity as well as a list of all its managers and members of the board of directors and shareholders for the two years preceding the bankruptcy application, and the trustee’s opinion with respect to the management and the preservation of the company’s assets, to be deposited at the court within two weeks.
Another hearing will take place at the court on 26 July 2021.
News that Arabtec shareholders had voted to liquidate the company broke in September 2020 following $216 million of losses in the first half of the year.
The Dubai Court of the First Instance has accepted Arabtec Holding’s petition to open bankruptcy proceedings of the company and its subsidiaries. The court has also decided to appoint trustee for each entity.
Trustees have been appointed for the holding company, as well as six subsidiaries which are joining parties in the proceedings: Arabtec Construction LLC, Austrian Arabian Readymix Concrete Co LLC, Arabtec Precast LLC, Arabtec ConstructionsLLC, Emirates Falcon Electromechanical Co . EFECO (L.L.C.).
“The court ordered each appointed trustee to publish the bankruptcy decision of each entity, review its debts, deposit a list and a record of its creditors, and conduct all the procedures stipulated under the Bankruptcy Law within 35 days from the date of the appointment notification,” Arabtec Holding notified the Dubai Financial Market.
Each trustee was also instructed to prepare an initial report on assets of each entity as well as a list of all its managers and members of the board of directors and shareholders for the two years preceding the bankruptcy application, and the trustee’s opinion with respect to the management and the preservation of the company’s assets, to be deposited at the court within two weeks.
Another hearing will take place at the court on 26 July 2021.
News that Arabtec shareholders had voted to liquidate the company broke in September 2020 following $216 million of losses in the first half of the year.
#AbuDhabi's Mubadala to offer up to 40% of Yahsat in IPO | ZAWYA MENA Edition
Abu Dhabi's Mubadala to offer up to 40% of Yahsat in IPO | ZAWYA MENA Edition
Abu Dhabi state investor Mubadala will offer at least 30 percent of Al Yah Satellite Communications Co's (Yahsat) issued share capital to retail and institutional investor through initial public offering (IPO).
Yahsat is UAE’s leading satellite services operator and offers satellite communications solutions in over 150 countries.
The subscription period begins on 27 June, 2021. Yahsat has hired Abu Dhabi Commercial Bank, First Abu Dhabi Bank and HSBC Holdings as joint lead managers.
The IPO is for a minimum of 731.9 million shares and a maximum of 975.9 million shares, representing minimum 30 per cent stake and maximum of 40 per cent stake in the company. The expected date of listing in ADGM is July 14.
Musabbeh Al Kaabi, CEO of UAE Investments at Mubadala and Chairman of Yahsat, said: “Mubadala takes pride in the creation of Yahsat, and is proud of its position as one of the world’s leading fixed and mobile satellite communication providers, through its high caliber of talented UAE and international experts. We believe the listing of Yahsat on Abu Dhabi’s Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
Abu Dhabi state investor Mubadala will offer at least 30 percent of Al Yah Satellite Communications Co's (Yahsat) issued share capital to retail and institutional investor through initial public offering (IPO).
Yahsat is UAE’s leading satellite services operator and offers satellite communications solutions in over 150 countries.
The subscription period begins on 27 June, 2021. Yahsat has hired Abu Dhabi Commercial Bank, First Abu Dhabi Bank and HSBC Holdings as joint lead managers.
The IPO is for a minimum of 731.9 million shares and a maximum of 975.9 million shares, representing minimum 30 per cent stake and maximum of 40 per cent stake in the company. The expected date of listing in ADGM is July 14.
Musabbeh Al Kaabi, CEO of UAE Investments at Mubadala and Chairman of Yahsat, said: “Mubadala takes pride in the creation of Yahsat, and is proud of its position as one of the world’s leading fixed and mobile satellite communication providers, through its high caliber of talented UAE and international experts. We believe the listing of Yahsat on Abu Dhabi’s Stock Exchange further reiterates our role in contributing to the growth of the UAE economy.”
Oil prices climb as Iran nuclear talks drag, summer demand aids | Reuters
Oil prices climb as Iran nuclear talks drag, summer demand aids | Reuters
Oil prices rose on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.
Brent crude for August gained 23 cents, or 0.3%, to $73.74 a barrel by 0622 GMT. U.S. West Texas Intermediate (WTI) crude for July was at $71.94 a barrel, up 30 cents, or 0.4%.
Both benchmarks have risen for the past four weeks amid optimism over the pace of global vaccinations and a pick up in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs. read more
"The rebound in demand in the northern hemisphere summer is so strong that the market is becoming increasingly concerned about further sharp drawdowns on inventories," ANZ analysts said in a note.
Oil prices rose on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could indicate a delay in resumption of supplies from the OPEC producer.
Brent crude for August gained 23 cents, or 0.3%, to $73.74 a barrel by 0622 GMT. U.S. West Texas Intermediate (WTI) crude for July was at $71.94 a barrel, up 30 cents, or 0.4%.
Both benchmarks have risen for the past four weeks amid optimism over the pace of global vaccinations and a pick up in summer travel. The rebound has pushed up spot premiums for crude in Asia and Europe to multi-month highs. read more
"The rebound in demand in the northern hemisphere summer is so strong that the market is becoming increasingly concerned about further sharp drawdowns on inventories," ANZ analysts said in a note.